Sen. Tim Bivins
Filed: 4/15/2013
 
 


 




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1
AMENDMENT TO SENATE BILL 2086 




2 AMENDMENT NO. ______. Amend Senate Bill 2086 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The Use Tax Act is amended by changing Section 
53-5 as follows:



6 (35 ILCS 105/3-5)


7 Sec. 3-5. Exemptions. Use of the following tangible 
8personal property
is exempt from the tax imposed by this Act:

9 (1) Personal property purchased from a corporation, 
10society, association,
foundation, institution, or 
11organization, other than a limited liability
company, that is 
12organized and operated as a not-for-profit service enterprise

13for the benefit of persons 65 years of age or older if the 
14personal property
was not purchased by the enterprise for the 
15purpose of resale by the
enterprise.

16 (2) Personal property purchased by a not-for-profit 
 
 
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1Illinois county
fair association for use in conducting, 
2operating, or promoting the
county fair.

3 (3) Personal property purchased by a not-for-profit
arts or 
4cultural organization that establishes, by proof required by 
5the
Department by
rule, that it has received an exemption under 
6Section 501(c)(3) of the Internal
Revenue Code and that is 
7organized and operated primarily for the
presentation
or 
8support of arts or cultural programming, activities, or 
9services. These
organizations include, but are not limited to, 
10music and dramatic arts
organizations such as symphony 
11orchestras and theatrical groups, arts and
cultural service 
12organizations, local arts councils, visual arts organizations,

13and media arts organizations.
On and after the effective date 
14of this amendatory Act of the 92nd General
Assembly, however, 
15an entity otherwise eligible for this exemption shall not
make 
16tax-free purchases unless it has an active identification 
17number issued by
the Department.

18 (4) Personal property purchased by a governmental body, by 
19a
corporation, society, association, foundation, or 
20institution organized and
operated exclusively for charitable, 
21religious, or educational purposes, or
by a not-for-profit 
22corporation, society, association, foundation,
institution, or 
23organization that has no compensated officers or employees
and 
24that is organized and operated primarily for the recreation of 
25persons
55 years of age or older. A limited liability company 
26may qualify for the
exemption under this paragraph only if the 
 
 
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1limited liability company is
organized and operated 
2exclusively for educational purposes. On and after July
1, 
31987, however, no entity otherwise eligible for this exemption 
4shall make
tax-free purchases unless it has an active exemption 
5identification number
issued by the Department.

6 (5) Until July 1, 2003, a passenger car that is a 
7replacement vehicle to
the extent that the
purchase price of 
8the car is subject to the Replacement Vehicle Tax.

9 (6) Until July 1, 2003 and beginning again on September 1, 
102004 through August 30, 2014, graphic arts machinery and 
11equipment, including
repair and replacement
parts, both new and 
12used, and including that manufactured on special order,

13certified by the purchaser to be used primarily for graphic 
14arts production,
and including machinery and equipment 
15purchased for lease.
Equipment includes chemicals or chemicals 
16acting as catalysts but only if
the
chemicals or chemicals 
17acting as catalysts effect a direct and immediate change
upon a 
18graphic arts product.

19 (7) Farm chemicals.

20 (8) Legal tender, currency, medallions, or gold or silver 
21coinage issued by
the State of Illinois, the government of the 
22United States of America, or the
government of any foreign 
23country, and bullion.

24 (9) Personal property purchased from a teacher-sponsored 
25student
organization affiliated with an elementary or 
26secondary school located in
Illinois.

 
 
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1 (10) A motor vehicle of the first division, a motor vehicle 
2of the
second division that is a self-contained motor vehicle 
3designed or
permanently converted to provide living quarters 
4for recreational, camping,
or travel use, with direct walk 
5through to the living quarters from the
driver's seat, or a 
6motor vehicle of the second division that is of the
van 
7configuration designed for the transportation of not less than 
87 nor
more than 16 passengers, as defined in Section 1-146 of 
9the Illinois
Vehicle Code, that is used for automobile renting, 
10as defined in the
Automobile Renting Occupation and Use Tax 
11Act.

12 (11) Farm machinery and equipment, both new and used,

13including that manufactured on special order, certified by the 
14purchaser
to be used primarily for production agriculture or 
15State or federal
agricultural programs, including individual 
16replacement parts for
the machinery and equipment, including 
17machinery and equipment
purchased
for lease,
and including 
18implements of husbandry defined in Section 1-130 of
the 
19Illinois Vehicle Code, farm machinery and agricultural 
20chemical and
fertilizer spreaders, and nurse wagons required to 
21be registered
under Section 3-809 of the Illinois Vehicle Code,

22but excluding other motor
vehicles required to be
registered 
23under the Illinois Vehicle Code.
Horticultural polyhouses or 
24hoop houses used for propagating, growing, or
overwintering 
25plants shall be considered farm machinery and equipment under

26this item (11).
Agricultural chemical tender tanks and dry 
 
 
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1boxes shall include units sold
separately from a motor vehicle 
2required to be licensed and units sold mounted
on a motor 
3vehicle required to be licensed if the selling price of the 
4tender
is separately stated.

5 Farm machinery and equipment shall include precision 
6farming equipment
that is
installed or purchased to be 
7installed on farm machinery and equipment
including, but not 
8limited to, tractors, harvesters, sprayers, planters,
seeders, 
9or spreaders.
Precision farming equipment includes, but is not 
10limited to, soil testing
sensors, computers, monitors, 
11software, global positioning
and mapping systems, and other 
12such equipment.

13 Farm machinery and equipment also includes computers, 
14sensors, software, and
related equipment used primarily in the

15computer-assisted operation of production agriculture 
16facilities, equipment,
and
activities such as, but not limited 
17to,
the collection, monitoring, and correlation of
animal and 
18crop data for the purpose of
formulating animal diets and 
19agricultural chemicals. This item (11) is exempt
from the 
20provisions of
Section 3-90.

21 (12) Fuel and petroleum products sold to or used by an air 
22common
carrier, certified by the carrier to be used for 
23consumption, shipment, or
storage in the conduct of its 
24business as an air common carrier, for a
flight destined for or 
25returning from a location or locations
outside the United 
26States without regard to previous or subsequent domestic

 
 
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1stopovers.

2 (13) Proceeds of mandatory service charges separately

3stated on customers' bills for the purchase and consumption of 
4food and
beverages purchased at retail from a retailer, to the 
5extent that the proceeds
of the service charge are in fact 
6turned over as tips or as a substitute
for tips to the 
7employees who participate directly in preparing, serving,

8hosting or cleaning up the food or beverage function with 
9respect to which
the service charge is imposed.

10 (14) Until July 1, 2003, oil field exploration, drilling, 
11and production
equipment,
including (i) rigs and parts of rigs, 
12rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and 
13tubular goods,
including casing and drill strings, (iii) pumps 
14and pump-jack units, (iv)
storage tanks and flow lines, (v) any 
15individual replacement part for oil
field exploration, 
16drilling, and production equipment, and (vi) machinery and

17equipment purchased
for lease; but excluding motor vehicles 
18required to be registered under the
Illinois Vehicle Code.

19 (15) Photoprocessing machinery and equipment, including 
20repair and
replacement parts, both new and used, including that

21manufactured on special order, certified by the purchaser to be 
22used
primarily for photoprocessing, and including

23photoprocessing machinery and equipment purchased for lease.

24 (16) Until July 1, 2003, and beginning again on the 
25effective date of this amendatory Act of the 97th General 
26Assembly and thereafter, coal and aggregate exploration, 
 
 
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1mining, offhighway hauling,
processing, maintenance, and 
2reclamation equipment,
including replacement parts and 
3equipment, and
including equipment purchased for lease, but 
4excluding motor
vehicles required to be registered under the 
5Illinois Vehicle Code.

6 (17) Until July 1, 2003, distillation machinery and 
7equipment, sold as a
unit or kit,
assembled or installed by the 
8retailer, certified by the user to be used
only for the 
9production of ethyl alcohol that will be used for consumption

10as motor fuel or as a component of motor fuel for the personal 
11use of the
user, and not subject to sale or resale.

12 (18) Manufacturing and assembling machinery and equipment 
13used
primarily in the process of manufacturing or assembling 
14tangible
personal property for wholesale or retail sale or 
15lease, whether that sale
or lease is made directly by the 
16manufacturer or by some other person,
whether the materials 
17used in the process are
owned by the manufacturer or some other 
18person, or whether that sale or
lease is made apart from or as 
19an incident to the seller's engaging in
the service occupation 
20of producing machines, tools, dies, jigs,
patterns, gauges, or 
21other similar items of no commercial value on
special order for 
22a particular purchaser.

23 (19) Personal property delivered to a purchaser or 
24purchaser's donee
inside Illinois when the purchase order for 
25that personal property was
received by a florist located 
26outside Illinois who has a florist located
inside Illinois 
 
 
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1deliver the personal property.

2 (20) Semen used for artificial insemination of livestock 
3for direct
agricultural production.

4 (21) Horses, or interests in horses, registered with and 
5meeting the
requirements of any of the
Arabian Horse Club 
6Registry of America, Appaloosa Horse Club, American Quarter

7Horse Association, United States
Trotting Association, or 
8Jockey Club, as appropriate, used for
purposes of breeding or 
9racing for prizes. This item (21) is exempt from the provisions 
10of Section 3-90, and the exemption provided for under this item 
11(21) applies for all periods beginning May 30, 1995, but no 
12claim for credit or refund is allowed on or after January 1, 
132008
for such taxes paid during the period beginning May 30, 
142000 and ending on January 1, 2008.


15 (22) Computers and communications equipment utilized for 
16any
hospital
purpose
and equipment used in the diagnosis,

17analysis, or treatment of hospital patients purchased by a 
18lessor who leases
the
equipment, under a lease of one year or 
19longer executed or in effect at the
time the lessor would 
20otherwise be subject to the tax imposed by this Act, to a

21hospital
that has been issued an active tax exemption 
22identification number by
the
Department under Section 1g of the 
23Retailers' Occupation Tax Act. If the
equipment is leased in a 
24manner that does not qualify for
this exemption or is used in 
25any other non-exempt manner, the lessor
shall be liable for the

26tax imposed under this Act or the Service Use Tax Act, as the 
 
 
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1case may
be, based on the fair market value of the property at 
2the time the
non-qualifying use occurs. No lessor shall collect 
3or attempt to collect an
amount (however
designated) that 
4purports to reimburse that lessor for the tax imposed by this

5Act or the Service Use Tax Act, as the case may be, if the tax 
6has not been
paid by the lessor. If a lessor improperly 
7collects any such amount from the
lessee, the lessee shall have 
8a legal right to claim a refund of that amount
from the lessor. 
9If, however, that amount is not refunded to the lessee for
any 
10reason, the lessor is liable to pay that amount to the 
11Department.

12 (23) Personal property purchased by a lessor who leases the

13property, under
a
lease of
one year or longer executed or in 
14effect at the time
the lessor would otherwise be subject to the 
15tax imposed by this Act,
to a governmental body
that has been 
16issued an active sales tax exemption identification number by 
17the
Department under Section 1g of the Retailers' Occupation 
18Tax Act.
If the
property is leased in a manner that does not 
19qualify for
this exemption
or used in any other non-exempt 
20manner, the lessor shall be liable for the
tax imposed under 
21this Act or the Service Use Tax Act, as the case may
be, based 
22on the fair market value of the property at the time the

23non-qualifying use occurs. No lessor shall collect or attempt 
24to collect an
amount (however
designated) that purports to 
25reimburse that lessor for the tax imposed by this
Act or the 
26Service Use Tax Act, as the case may be, if the tax has not been

 
 
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1paid by the lessor. If a lessor improperly collects any such 
2amount from the
lessee, the lessee shall have a legal right to 
3claim a refund of that amount
from the lessor. If, however, 
4that amount is not refunded to the lessee for
any reason, the 
5lessor is liable to pay that amount to the Department.

6 (24) Beginning with taxable years ending on or after 
7December
31, 1995
and
ending with taxable years ending on or 
8before December 31, 2004,
personal property that is
donated for 
9disaster relief to be used in a State or federally declared

10disaster area in Illinois or bordering Illinois by a 
11manufacturer or retailer
that is registered in this State to a 
12corporation, society, association,
foundation, or institution 
13that has been issued a sales tax exemption
identification 
14number by the Department that assists victims of the disaster

15who reside within the declared disaster area.

16 (25) Beginning with taxable years ending on or after 
17December
31, 1995 and
ending with taxable years ending on or 
18before December 31, 2004, personal
property that is used in the 
19performance of infrastructure repairs in this
State, including 
20but not limited to municipal roads and streets, access roads,

21bridges, sidewalks, waste disposal systems, water and sewer 
22line extensions,
water distribution and purification 
23facilities, storm water drainage and
retention facilities, and 
24sewage treatment facilities, resulting from a State
or 
25federally declared disaster in Illinois or bordering Illinois 
26when such
repairs are initiated on facilities located in the 
 
 
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1declared disaster area
within 6 months after the disaster.

2 (26) Beginning July 1, 1999, game or game birds purchased 
3at a "game
breeding
and hunting preserve area" as that term is

4used in
the Wildlife Code. This paragraph is exempt from the 
5provisions
of
Section 3-90.

6 (27) A motor vehicle, as that term is defined in Section 
71-146
of the
Illinois
Vehicle Code, that is donated to a 
8corporation, limited liability company,
society, association, 
9foundation, or institution that is determined by the
Department 
10to be organized and operated exclusively for educational 
11purposes.
For purposes of this exemption, "a corporation, 
12limited liability company,
society, association, foundation, 
13or institution organized and operated
exclusively for 
14educational purposes" means all tax-supported public schools,

15private schools that offer systematic instruction in useful 
16branches of
learning by methods common to public schools and 
17that compare favorably in
their scope and intensity with the 
18course of study presented in tax-supported
schools, and 
19vocational or technical schools or institutes organized and

20operated exclusively to provide a course of study of not less 
21than 6 weeks
duration and designed to prepare individuals to 
22follow a trade or to pursue a
manual, technical, mechanical, 
23industrial, business, or commercial
occupation.

24 (28) Beginning January 1, 2000, personal property, 
25including
food,
purchased through fundraising
events for the 
26benefit of
a public or private elementary or
secondary school, 
 
 
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1a group of those schools, or one or more school
districts if 
2the events are
sponsored by an entity recognized by the school 
3district that consists
primarily of volunteers and includes

4parents and teachers of the school children. This paragraph 
5does not apply
to fundraising
events (i) for the benefit of 
6private home instruction or (ii)
for which the fundraising 
7entity purchases the personal property sold at
the events from 
8another individual or entity that sold the property for the

9purpose of resale by the fundraising entity and that
profits 
10from the sale to the
fundraising entity. This paragraph is 
11exempt
from the provisions
of Section 3-90.

12 (29) Beginning January 1, 2000 and through December 31, 
132001, new or
used automatic vending
machines that prepare and 
14serve hot food and beverages, including coffee, soup,
and
other 
15items, and replacement parts for these machines.
Beginning 
16January 1,
2002 and through June 30, 2003, machines and parts 
17for machines used in
commercial, coin-operated amusement and 
18vending business if a use or occupation
tax is paid on the 
19gross receipts derived from the use of the commercial,

20coin-operated amusement and vending machines.
This
paragraph

21is exempt from the provisions of Section 3-90.

22 (30) Beginning January 1, 2001 and through June 30, 2016, 
23food for human consumption that is to be consumed off the 
24premises
where it is sold (other than alcoholic beverages, soft 
25drinks, and food that
has been prepared for immediate 
26consumption) and prescription and
nonprescription medicines, 
 
 
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1drugs, medical appliances, and insulin, urine
testing 
2materials, syringes, and needles used by diabetics, for human 
3use, when
purchased for use by a person receiving medical 
4assistance under Article V of
the Illinois Public Aid Code who 
5resides in a licensed long-term care facility,
as defined in 
6the Nursing Home Care Act, or in a licensed facility as defined 
7in the ID/DD Community Care Act or the Specialized Mental 
8Health Rehabilitation Act.

9 (31) Beginning on
the effective date of this amendatory Act 
10of the 92nd General Assembly,
computers and communications 
11equipment
utilized for any hospital purpose and equipment used 
12in the diagnosis,
analysis, or treatment of hospital patients 
13purchased by a lessor who leases
the equipment, under a lease 
14of one year or longer executed or in effect at the
time the 
15lessor would otherwise be subject to the tax imposed by this 
16Act, to a
hospital that has been issued an active tax exemption 
17identification number by
the Department under Section 1g of the 
18Retailers' Occupation Tax Act. If the
equipment is leased in a 
19manner that does not qualify for this exemption or is
used in 
20any other nonexempt manner, the lessor shall be liable for the 
21tax
imposed under this Act or the Service Use Tax Act, as the 
22case may be, based on
the fair market value of the property at 
23the time the nonqualifying use
occurs. No lessor shall collect 
24or attempt to collect an amount (however
designated) that 
25purports to reimburse that lessor for the tax imposed by this

26Act or the Service Use Tax Act, as the case may be, if the tax 
 
 
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1has not been
paid by the lessor. If a lessor improperly 
2collects any such amount from the
lessee, the lessee shall have 
3a legal right to claim a refund of that amount
from the lessor. 
4If, however, that amount is not refunded to the lessee for
any 
5reason, the lessor is liable to pay that amount to the 
6Department.
This paragraph is exempt from the provisions of 
7Section 3-90.

8 (32) Beginning on
the effective date of this amendatory Act 
9of the 92nd General Assembly,
personal property purchased by a 
10lessor who leases the property,
under a lease of one year or 
11longer executed or in effect at the time the
lessor would 
12otherwise be subject to the tax imposed by this Act, to a

13governmental body that has been issued an active sales tax 
14exemption
identification number by the Department under 
15Section 1g of the Retailers'
Occupation Tax Act. If the 
16property is leased in a manner that does not
qualify for this 
17exemption or used in any other nonexempt manner, the lessor

18shall be liable for the tax imposed under this Act or the 
19Service Use Tax Act,
as the case may be, based on the fair 
20market value of the property at the time
the nonqualifying use 
21occurs. No lessor shall collect or attempt to collect
an amount 
22(however designated) that purports to reimburse that lessor for 
23the
tax imposed by this Act or the Service Use Tax Act, as the 
24case may be, if the
tax has not been paid by the lessor. If a 
25lessor improperly collects any such
amount from the lessee, the 
26lessee shall have a legal right to claim a refund
of that 
 
 
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1amount from the lessor. If, however, that amount is not 
2refunded to
the lessee for any reason, the lessor is liable to 
3pay that amount to the
Department. This paragraph is exempt 
4from the provisions of Section 3-90.

5 (33) On and after July 1, 2003 and through June 30, 2004, 
6the use in this State of motor vehicles of
the second division 
7with a gross vehicle weight in excess of 8,000 pounds and
that 
8are subject to the commercial distribution fee imposed under 
9Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 
101, 2004 and through June 30, 2005, the use in this State of 
11motor vehicles of the second division: (i) with a gross vehicle 
12weight rating in excess of 8,000 pounds; (ii) that are subject 
13to the commercial distribution fee imposed under Section 
143-815.1 of the Illinois Vehicle Code; and (iii) that are 
15primarily used for commercial purposes. Through June 30, 2005, 
16this exemption applies to repair and
replacement parts added 
17after the initial purchase of such a motor vehicle if
that 
18motor
vehicle is used in a manner that would qualify for the 
19rolling stock exemption
otherwise provided for in this Act. For 
20purposes of this paragraph, the term "used for commercial 
21purposes" means the transportation of persons or property in 
22furtherance of any commercial or industrial enterprise, 
23whether for-hire or not.


24 (34) Beginning January 1, 2008, tangible personal property 
25used in the construction or maintenance of a community water 
26supply, as defined under Section 3.145 of the Environmental 
 
 
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1Protection Act, that is operated by a not-for-profit 
2corporation that holds a valid water supply permit issued under 
3Title IV of the Environmental Protection Act. This paragraph is 
4exempt from the provisions of Section 3-90.
5 (35) Beginning January 1, 2010, materials, parts, 
6equipment, components, and furnishings incorporated into or 
7upon an aircraft as part of the modification, refurbishment, 
8completion, replacement, repair, or maintenance of the 
9aircraft. This exemption includes consumable supplies used in 
10the modification, refurbishment, completion, replacement, 
11repair, and maintenance of aircraft, but excludes any 
12materials, parts, equipment, components, and consumable 
13supplies used in the modification, replacement, repair, and 
14maintenance of aircraft engines or power plants, whether such 
15engines or power plants are installed or uninstalled upon any 
16such aircraft. "Consumable supplies" include, but are not 
17limited to, adhesive, tape, sandpaper, general purpose 
18lubricants, cleaning solution, latex gloves, and protective 
19films. This exemption applies only to those organizations that 
20(i) hold an Air Agency Certificate and are empowered to operate 
21an approved repair station by the Federal Aviation 
22Administration, (ii) have a Class IV Rating, and (iii) conduct 
23operations in accordance with Part 145 of the Federal Aviation 
24Regulations. The exemption does not include aircraft operated 
25by a commercial air carrier providing scheduled passenger air 
26service pursuant to authority issued under Part 121 or Part 129 
 
 
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1of the Federal Aviation Regulations. 
2 (36) Tangible personal property purchased by a 
3public-facilities corporation, as described in Section 
411-65-10 of the Illinois Municipal Code, for purposes of 
5constructing or furnishing a municipal convention hall, but 
6only if the legal title to the municipal convention hall is 
7transferred to the municipality without any further 
8consideration by or on behalf of the municipality at the time 
9of the completion of the municipal convention hall or upon the 
10retirement or redemption of any bonds or other debt instruments 
11issued by the public-facilities corporation in connection with 
12the development of the municipal convention hall. This 
13exemption includes existing public-facilities corporations as 
14provided in Section 11-65-25 of the Illinois Municipal Code. 
15This paragraph is exempt from the provisions of Section 3-90. 
16 (37) Until January 1, 2015, firearm safety devices, 
17including safes, lock boxes, trigger and barrel locks, and 
18other items designed to enhance home firearm safety. 
19(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; 
2096-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. 
217-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. 
228-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)


23 Section 10. The Service Use Tax Act is amended by changing 
24Section 3-5 as follows:



 
 
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1 (35 ILCS 110/3-5)


2 Sec. 3-5. Exemptions. Use of the following tangible 
3personal property
is exempt from the tax imposed by this Act:

4 (1) Personal property purchased from a corporation, 
5society,
association, foundation, institution, or 
6organization, other than a limited
liability company, that is 
7organized and operated as a not-for-profit service
enterprise 
8for the benefit of persons 65 years of age or older if the 
9personal
property was not purchased by the enterprise for the 
10purpose of resale by the
enterprise.

11 (2) Personal property purchased by a non-profit Illinois 
12county fair
association for use in conducting, operating, or 
13promoting the county fair.

14 (3) Personal property purchased by a not-for-profit arts
or 
15cultural
organization that establishes, by proof required by 
16the Department by rule,
that it has received an exemption under 
17Section 501(c)(3) of the Internal
Revenue Code and that is 
18organized and operated primarily for the
presentation
or 
19support of arts or cultural programming, activities, or 
20services. These
organizations include, but are not limited to, 
21music and dramatic arts
organizations such as symphony 
22orchestras and theatrical groups, arts and
cultural service 
23organizations, local arts councils, visual arts organizations,

24and media arts organizations.
On and after the effective date 
25of this amendatory Act of the 92nd General
Assembly, however, 
26an entity otherwise eligible for this exemption shall not
make 
 
 
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1tax-free purchases unless it has an active identification 
2number issued by
the Department.

3 (4) Legal tender, currency, medallions, or gold or silver 
4coinage issued
by the State of Illinois, the government of the 
5United States of America,
or the government of any foreign 
6country, and bullion.

7 (5) Until July 1, 2003 and beginning again on September 1, 
82004 through August 30, 2014, graphic arts machinery and 
9equipment, including
repair and
replacement parts, both new and 
10used, and including that manufactured on
special order or 
11purchased for lease, certified by the purchaser to be used

12primarily for graphic arts production.
Equipment includes 
13chemicals or
chemicals acting as catalysts but only if
the 
14chemicals or chemicals acting as catalysts effect a direct and 
15immediate
change upon a graphic arts product.

16 (6) Personal property purchased from a teacher-sponsored 
17student
organization affiliated with an elementary or 
18secondary school located
in Illinois.

19 (7) Farm machinery and equipment, both new and used, 
20including that
manufactured on special order, certified by the 
21purchaser to be used
primarily for production agriculture or 
22State or federal agricultural
programs, including individual 
23replacement parts for the machinery and
equipment, including 
24machinery and equipment purchased for lease,
and including 
25implements of husbandry defined in Section 1-130 of
the 
26Illinois Vehicle Code, farm machinery and agricultural 
 
 
09800SB2086sam001- 20 -LRB098 06617 HLH 44446 a


1chemical and
fertilizer spreaders, and nurse wagons required to 
2be registered
under Section 3-809 of the Illinois Vehicle Code,

3but
excluding other motor vehicles required to be registered 
4under the Illinois
Vehicle Code.
Horticultural polyhouses or 
5hoop houses used for propagating, growing, or
overwintering 
6plants shall be considered farm machinery and equipment under

7this item (7).
Agricultural chemical tender tanks and dry boxes 
8shall include units sold
separately from a motor vehicle 
9required to be licensed and units sold mounted
on a motor 
10vehicle required to be licensed if the selling price of the 
11tender
is separately stated.

12 Farm machinery and equipment shall include precision 
13farming equipment
that is
installed or purchased to be 
14installed on farm machinery and equipment
including, but not 
15limited to, tractors, harvesters, sprayers, planters,
seeders, 
16or spreaders.
Precision farming equipment includes, but is not 
17limited to,
soil testing sensors, computers, monitors, 
18software, global positioning
and mapping systems, and other 
19such equipment.

20 Farm machinery and equipment also includes computers, 
21sensors, software, and
related equipment used primarily in the

22computer-assisted operation of production agriculture 
23facilities, equipment,
and activities such as, but
not limited 
24to,
the collection, monitoring, and correlation of
animal and 
25crop data for the purpose of
formulating animal diets and 
26agricultural chemicals. This item (7) is exempt
from the 
 
 
09800SB2086sam001- 21 -LRB098 06617 HLH 44446 a


1provisions of
Section 3-75.

2 (8) Fuel and petroleum products sold to or used by an air 
3common
carrier, certified by the carrier to be used for 
4consumption, shipment, or
storage in the conduct of its 
5business as an air common carrier, for a
flight destined for or 
6returning from a location or locations
outside the United 
7States without regard to previous or subsequent domestic

8stopovers.

9 (9) Proceeds of mandatory service charges separately 
10stated on
customers' bills for the purchase and consumption of 
11food and beverages
acquired as an incident to the purchase of a 
12service from a serviceman, to
the extent that the proceeds of 
13the service charge are in fact
turned over as tips or as a 
14substitute for tips to the employees who
participate directly 
15in preparing, serving, hosting or cleaning up the
food or 
16beverage function with respect to which the service charge is 
17imposed.

18 (10) Until July 1, 2003, oil field exploration, drilling, 
19and production
equipment, including
(i) rigs and parts of rigs, 
20rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
21tubular goods, including casing and
drill strings, (iii) pumps 
22and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
23individual replacement part for oil field exploration,

24drilling, and production equipment, and (vi) machinery and 
25equipment purchased
for lease; but
excluding motor vehicles 
26required to be registered under the Illinois
Vehicle Code.

 
 
09800SB2086sam001- 22 -LRB098 06617 HLH 44446 a


1 (11) Proceeds from the sale of photoprocessing machinery 
2and
equipment, including repair and replacement parts, both new 
3and
used, including that manufactured on special order, 
4certified by the
purchaser to be used primarily for 
5photoprocessing, and including
photoprocessing machinery and 
6equipment purchased for lease.

7 (12) Until July 1, 2003, and beginning again on the 
8effective date of this amendatory Act of the 97th General 
9Assembly and thereafter, coal and aggregate exploration, 
10mining, offhighway hauling,
processing,
maintenance, and 
11reclamation equipment, including
replacement parts and 
12equipment, and including
equipment purchased for lease, but 
13excluding motor vehicles required to be
registered under the 
14Illinois Vehicle Code.

15 (13) Semen used for artificial insemination of livestock 
16for direct
agricultural production.

17 (14) Horses, or interests in horses, registered with and 
18meeting the
requirements of any of the
Arabian Horse Club 
19Registry of America, Appaloosa Horse Club, American Quarter

20Horse Association, United States
Trotting Association, or 
21Jockey Club, as appropriate, used for
purposes of breeding or 
22racing for prizes. This item (14) is exempt from the provisions 
23of Section 3-75, and the exemption provided for under this item 
24(14) applies for all periods beginning May 30, 1995, but no 
25claim for credit or refund is allowed on or after the effective 
26date of this amendatory Act of the 95th General Assembly for 
 
 
09800SB2086sam001- 23 -LRB098 06617 HLH 44446 a


1such taxes paid during the period beginning May 30, 2000 and 
2ending on the effective date of this amendatory Act of the 95th 
3General Assembly.

4 (15) Computers and communications equipment utilized for 
5any
hospital
purpose
and equipment used in the diagnosis,

6analysis, or treatment of hospital patients purchased by a 
7lessor who leases
the
equipment, under a lease of one year or 
8longer executed or in effect at the
time
the lessor would 
9otherwise be subject to the tax imposed by this Act,
to a

10hospital
that has been issued an active tax exemption 
11identification number by the
Department under Section 1g of the 
12Retailers' Occupation Tax Act.
If the
equipment is leased in a 
13manner that does not qualify for
this exemption
or is used in 
14any other non-exempt manner,
the lessor shall be liable for the

15tax imposed under this Act or the Use Tax Act, as the case may

16be, based on the fair market value of the property at the time 
17the
non-qualifying use occurs. No lessor shall collect or 
18attempt to collect an
amount (however
designated) that purports 
19to reimburse that lessor for the tax imposed by this
Act or the 
20Use Tax Act, as the case may be, if the tax has not been
paid by 
21the lessor. If a lessor improperly collects any such amount 
22from the
lessee, the lessee shall have a legal right to claim a 
23refund of that amount
from the lessor. If, however, that amount 
24is not refunded to the lessee for
any reason, the lessor is 
25liable to pay that amount to the Department.

26 (16) Personal property purchased by a lessor who leases the

 
 
09800SB2086sam001- 24 -LRB098 06617 HLH 44446 a


1property, under
a
lease of one year or longer executed or in 
2effect at the time
the lessor would otherwise be subject to the 
3tax imposed by this Act,
to a governmental body
that has been 
4issued an active tax exemption identification number by the

5Department under Section 1g of the Retailers' Occupation Tax 
6Act.
If the
property is leased in a manner that does not 
7qualify for
this exemption
or is used in any other non-exempt 
8manner,
the lessor shall be liable for the
tax imposed under 
9this Act or the Use Tax Act, as the case may
be, based on the 
10fair market value of the property at the time the

11non-qualifying use occurs. No lessor shall collect or attempt 
12to collect an
amount (however
designated) that purports to 
13reimburse that lessor for the tax imposed by this
Act or the 
14Use Tax Act, as the case may be, if the tax has not been
paid by 
15the lessor. If a lessor improperly collects any such amount 
16from the
lessee, the lessee shall have a legal right to claim a 
17refund of that amount
from the lessor. If, however, that amount 
18is not refunded to the lessee for
any reason, the lessor is 
19liable to pay that amount to the Department.

20 (17) Beginning with taxable years ending on or after 
21December
31,
1995
and
ending with taxable years ending on or 
22before December 31, 2004,
personal property that is
donated for 
23disaster relief to be used in a State or federally declared

24disaster area in Illinois or bordering Illinois by a 
25manufacturer or retailer
that is registered in this State to a 
26corporation, society, association,
foundation, or institution 
 
 
09800SB2086sam001- 25 -LRB098 06617 HLH 44446 a


1that has been issued a sales tax exemption
identification 
2number by the Department that assists victims of the disaster

3who reside within the declared disaster area.

4 (18) Beginning with taxable years ending on or after 
5December
31, 1995 and
ending with taxable years ending on or 
6before December 31, 2004, personal
property that is used in the 
7performance of infrastructure repairs in this
State, including 
8but not limited to municipal roads and streets, access roads,

9bridges, sidewalks, waste disposal systems, water and sewer 
10line extensions,
water distribution and purification 
11facilities, storm water drainage and
retention facilities, and 
12sewage treatment facilities, resulting from a State
or 
13federally declared disaster in Illinois or bordering Illinois 
14when such
repairs are initiated on facilities located in the 
15declared disaster area
within 6 months after the disaster.

16 (19) Beginning July 1, 1999, game or game birds purchased 
17at a "game
breeding
and hunting preserve area" as that term is

18used in
the Wildlife Code. This paragraph is exempt from the 
19provisions
of
Section 3-75.

20 (20) A motor vehicle, as that term is defined in Section 
211-146
of the
Illinois Vehicle Code, that is donated to a 
22corporation, limited liability
company, society, association, 
23foundation, or institution that is determined by
the Department 
24to be organized and operated exclusively for educational

25purposes. For purposes of this exemption, "a corporation, 
26limited liability
company, society, association, foundation, 
 
 
09800SB2086sam001- 26 -LRB098 06617 HLH 44446 a


1or institution organized and
operated
exclusively for 
2educational purposes" means all tax-supported public schools,

3private schools that offer systematic instruction in useful 
4branches of
learning by methods common to public schools and 
5that compare favorably in
their scope and intensity with the 
6course of study presented in tax-supported
schools, and 
7vocational or technical schools or institutes organized and

8operated exclusively to provide a course of study of not less 
9than 6 weeks
duration and designed to prepare individuals to 
10follow a trade or to pursue a
manual, technical, mechanical, 
11industrial, business, or commercial
occupation.

12 (21) Beginning January 1, 2000, personal property, 
13including
food,
purchased through fundraising
events for the 
14benefit of
a public or private elementary or
secondary school, 
15a group of those schools, or one or more school
districts if 
16the events are
sponsored by an entity recognized by the school 
17district that consists
primarily of volunteers and includes

18parents and teachers of the school children. This paragraph 
19does not apply
to fundraising
events (i) for the benefit of 
20private home instruction or (ii)
for which the fundraising 
21entity purchases the personal property sold at
the events from 
22another individual or entity that sold the property for the

23purpose of resale by the fundraising entity and that
profits 
24from the sale to the
fundraising entity. This paragraph is 
25exempt
from the provisions
of Section 3-75.

26 (22) Beginning January 1, 2000
and through December 31, 
 
 
09800SB2086sam001- 27 -LRB098 06617 HLH 44446 a


12001, new or used automatic vending
machines that prepare and 
2serve hot food and beverages, including coffee, soup,
and
other 
3items, and replacement parts for these machines.
Beginning 
4January 1,
2002 and through June 30, 2003, machines and parts 
5for machines used in
commercial, coin-operated
amusement
and 
6vending business if a use or occupation tax is paid on the 
7gross receipts
derived from
the use of the commercial, 
8coin-operated amusement and vending machines.
This
paragraph

9is exempt from the provisions of Section 3-75.

10 (23) Beginning August 23, 2001 and through June 30, 2016, 
11food for human consumption that is to be consumed off the

12premises
where it is sold (other than alcoholic beverages, soft 
13drinks, and food that
has been prepared for immediate 
14consumption) and prescription and
nonprescription medicines, 
15drugs, medical appliances, and insulin, urine
testing 
16materials, syringes, and needles used by diabetics, for human 
17use, when
purchased for use by a person receiving medical 
18assistance under Article V of
the Illinois Public Aid Code who 
19resides in a licensed long-term care facility,
as defined in 
20the Nursing Home Care Act, or in a licensed facility as defined 
21in the ID/DD Community Care Act or the Specialized Mental 
22Health Rehabilitation Act.

23 (24) Beginning on the effective date of this amendatory Act 
24of the 92nd
General Assembly, computers and communications 
25equipment
utilized for any hospital purpose and equipment used 
26in the diagnosis,
analysis, or treatment of hospital patients 
 
 
09800SB2086sam001- 28 -LRB098 06617 HLH 44446 a


1purchased by a lessor who leases
the equipment, under a lease 
2of one year or longer executed or in effect at the
time the 
3lessor would otherwise be subject to the tax imposed by this 
4Act, to a
hospital that has been issued an active tax exemption 
5identification number by
the Department under Section 1g of the 
6Retailers' Occupation Tax Act. If the
equipment is leased in a 
7manner that does not qualify for this exemption or is
used in 
8any other nonexempt manner, the lessor shall be liable for the

9tax imposed under this Act or the Use Tax Act, as the case may 
10be, based on the
fair market value of the property at the time 
11the nonqualifying use occurs.
No lessor shall collect or 
12attempt to collect an amount (however
designated) that purports 
13to reimburse that lessor for the tax imposed by this
Act or the 
14Use Tax Act, as the case may be, if the tax has not been
paid by 
15the lessor. If a lessor improperly collects any such amount 
16from the
lessee, the lessee shall have a legal right to claim a 
17refund of that amount
from the lessor. If, however, that amount 
18is not refunded to the lessee for
any reason, the lessor is 
19liable to pay that amount to the Department.
This paragraph is 
20exempt from the provisions of Section 3-75.

21 (25) Beginning
on the effective date of this amendatory Act 
22of the 92nd General Assembly,
personal property purchased by a 
23lessor
who leases the property, under a lease of one year or 
24longer executed or in
effect at the time the lessor would 
25otherwise be subject to the tax imposed by
this Act, to a 
26governmental body that has been issued an active tax exemption

 
 
09800SB2086sam001- 29 -LRB098 06617 HLH 44446 a


1identification number by the Department under Section 1g of the 
2Retailers'
Occupation Tax Act. If the property is leased in a 
3manner that does not
qualify for this exemption or is used in 
4any other nonexempt manner, the
lessor shall be liable for the 
5tax imposed under this Act or the Use Tax Act,
as the case may 
6be, based on the fair market value of the property at the time

7the nonqualifying use occurs. No lessor shall collect or 
8attempt to collect
an amount (however designated) that purports 
9to reimburse that lessor for the
tax imposed by this Act or the 
10Use Tax Act, as the case may be, if the tax has
not been paid by 
11the lessor. If a lessor improperly collects any such amount

12from the lessee, the lessee shall have a legal right to claim a 
13refund of that
amount from the lessor. If, however, that amount 
14is not refunded to the lessee
for any reason, the lessor is 
15liable to pay that amount to the Department.
This paragraph is 
16exempt from the provisions of Section 3-75.

17 (26) Beginning January 1, 2008, tangible personal property 
18used in the construction or maintenance of a community water 
19supply, as defined under Section 3.145 of the Environmental 
20Protection Act, that is operated by a not-for-profit 
21corporation that holds a valid water supply permit issued under 
22Title IV of the Environmental Protection Act. This paragraph is 
23exempt from the provisions of Section 3-75.

24 (27) Beginning January 1, 2010, materials, parts, 
25equipment, components, and furnishings incorporated into or 
26upon an aircraft as part of the modification, refurbishment, 
 
 
09800SB2086sam001- 30 -LRB098 06617 HLH 44446 a


1completion, replacement, repair, or maintenance of the 
2aircraft. This exemption includes consumable supplies used in 
3the modification, refurbishment, completion, replacement, 
4repair, and maintenance of aircraft, but excludes any 
5materials, parts, equipment, components, and consumable 
6supplies used in the modification, replacement, repair, and 
7maintenance of aircraft engines or power plants, whether such 
8engines or power plants are installed or uninstalled upon any 
9such aircraft. "Consumable supplies" include, but are not 
10limited to, adhesive, tape, sandpaper, general purpose 
11lubricants, cleaning solution, latex gloves, and protective 
12films. This exemption applies only to those organizations that 
13(i) hold an Air Agency Certificate and are empowered to operate 
14an approved repair station by the Federal Aviation 
15Administration, (ii) have a Class IV Rating, and (iii) conduct 
16operations in accordance with Part 145 of the Federal Aviation 
17Regulations. The exemption does not include aircraft operated 
18by a commercial air carrier providing scheduled passenger air 
19service pursuant to authority issued under Part 121 or Part 129 
20of the Federal Aviation Regulations. 
21 (28) Tangible personal property purchased by a 
22public-facilities corporation, as described in Section 
2311-65-10 of the Illinois Municipal Code, for purposes of 
24constructing or furnishing a municipal convention hall, but 
25only if the legal title to the municipal convention hall is 
26transferred to the municipality without any further 
 
 
09800SB2086sam001- 31 -LRB098 06617 HLH 44446 a


1consideration by or on behalf of the municipality at the time 
2of the completion of the municipal convention hall or upon the 
3retirement or redemption of any bonds or other debt instruments 
4issued by the public-facilities corporation in connection with 
5the development of the municipal convention hall. This 
6exemption includes existing public-facilities corporations as 
7provided in Section 11-65-25 of the Illinois Municipal Code. 
8This paragraph is exempt from the provisions of Section 3-75. 
9 (29) Until January 1, 2015, firearm safety devices, 
10including safes, lock boxes, trigger and barrel locks, and 
11other items designed to enhance home firearm safety. 
12(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; 
1396-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. 
147-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431, eff. 
158-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12.)


16 Section 15. The Service Occupation Tax Act is amended by 
17changing Section 3-5 as follows:



18 (35 ILCS 115/3-5)


19 Sec. 3-5. Exemptions. The following tangible personal 
20property is
exempt from the tax imposed by this Act:

21 (1) Personal property sold by a corporation, society, 
22association,
foundation, institution, or organization, other 
23than a limited liability
company, that is organized and 
24operated as a not-for-profit service enterprise
for the benefit 
 
 
09800SB2086sam001- 32 -LRB098 06617 HLH 44446 a


1of persons 65 years of age or older if the personal property

2was not purchased by the enterprise for the purpose of resale 
3by the
enterprise.

4 (2) Personal property purchased by a not-for-profit 
5Illinois county fair
association for use in conducting, 
6operating, or promoting the county fair.

7 (3) Personal property purchased by any not-for-profit
arts 
8or cultural organization that establishes, by proof required by 
9the
Department by
rule, that it has received an exemption under 
10Section 501(c)(3) of the
Internal Revenue Code and that is 
11organized and operated primarily for the
presentation
or 
12support of arts or cultural programming, activities, or 
13services. These
organizations include, but are not limited to, 
14music and dramatic arts
organizations such as symphony 
15orchestras and theatrical groups, arts and
cultural service 
16organizations, local arts councils, visual arts organizations,

17and media arts organizations.
On and after the effective date 
18of this amendatory Act of the 92nd General
Assembly, however, 
19an entity otherwise eligible for this exemption shall not
make 
20tax-free purchases unless it has an active identification 
21number issued by
the Department.

22 (4) Legal tender, currency, medallions, or gold or silver 
23coinage
issued by the State of Illinois, the government of the 
24United States of
America, or the government of any foreign 
25country, and bullion.

26 (5) Until July 1, 2003 and beginning again on September 1, 
 
 
09800SB2086sam001- 33 -LRB098 06617 HLH 44446 a


12004 through August 30, 2014, graphic arts machinery and 
2equipment, including
repair and
replacement parts, both new and 
3used, and including that manufactured on
special order or 
4purchased for lease, certified by the purchaser to be used

5primarily for graphic arts production.
Equipment includes 
6chemicals or chemicals acting as catalysts but only if
the

7chemicals or chemicals acting as catalysts effect a direct and 
8immediate change
upon a graphic arts product.

9 (6) Personal property sold by a teacher-sponsored student 
10organization
affiliated with an elementary or secondary school 
11located in Illinois.

12 (7) Farm machinery and equipment, both new and used, 
13including that
manufactured on special order, certified by the 
14purchaser to be used
primarily for production agriculture or 
15State or federal agricultural
programs, including individual 
16replacement parts for the machinery and
equipment, including 
17machinery and equipment purchased for lease,
and including 
18implements of husbandry defined in Section 1-130 of
the 
19Illinois Vehicle Code, farm machinery and agricultural 
20chemical and
fertilizer spreaders, and nurse wagons required to 
21be registered
under Section 3-809 of the Illinois Vehicle Code,

22but
excluding other motor vehicles required to be registered 
23under the Illinois
Vehicle
Code.
Horticultural polyhouses or 
24hoop houses used for propagating, growing, or
overwintering 
25plants shall be considered farm machinery and equipment under

26this item (7).
Agricultural chemical tender tanks and dry boxes 
 
 
09800SB2086sam001- 34 -LRB098 06617 HLH 44446 a


1shall include units sold
separately from a motor vehicle 
2required to be licensed and units sold mounted
on a motor 
3vehicle required to be licensed if the selling price of the 
4tender
is separately stated.

5 Farm machinery and equipment shall include precision 
6farming equipment
that is
installed or purchased to be 
7installed on farm machinery and equipment
including, but not 
8limited to, tractors, harvesters, sprayers, planters,
seeders, 
9or spreaders.
Precision farming equipment includes, but is not 
10limited to,
soil testing sensors, computers, monitors, 
11software, global positioning
and mapping systems, and other 
12such equipment.

13 Farm machinery and equipment also includes computers, 
14sensors, software, and
related equipment used primarily in the

15computer-assisted operation of production agriculture 
16facilities, equipment,
and activities such as, but
not limited 
17to,
the collection, monitoring, and correlation of
animal and 
18crop data for the purpose of
formulating animal diets and 
19agricultural chemicals. This item (7) is exempt
from the 
20provisions of
Section 3-55.

21 (8) Fuel and petroleum products sold to or used by an air 
22common
carrier, certified by the carrier to be used for 
23consumption, shipment,
or storage in the conduct of its 
24business as an air common carrier, for
a flight destined for or 
25returning from a location or locations
outside the United 
26States without regard to previous or subsequent domestic

 
 
09800SB2086sam001- 35 -LRB098 06617 HLH 44446 a


1stopovers.

2 (9) Proceeds of mandatory service charges separately

3stated on customers' bills for the purchase and consumption of 
4food and
beverages, to the extent that the proceeds of the 
5service charge are in fact
turned over as tips or as a 
6substitute for tips to the employees who
participate directly 
7in preparing, serving, hosting or cleaning up the
food or 
8beverage function with respect to which the service charge is 
9imposed.

10 (10) Until July 1, 2003, oil field exploration, drilling, 
11and production
equipment,
including (i) rigs and parts of rigs, 
12rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
13tubular goods, including casing and
drill strings, (iii) pumps 
14and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
15individual replacement part for oil field exploration,

16drilling, and production equipment, and (vi) machinery and 
17equipment purchased
for lease; but
excluding motor vehicles 
18required to be registered under the Illinois
Vehicle Code.

19 (11) Photoprocessing machinery and equipment, including 
20repair and
replacement parts, both new and used, including that 
21manufactured on
special order, certified by the purchaser to be 
22used primarily for
photoprocessing, and including 
23photoprocessing machinery and equipment
purchased for lease.

24 (12) Until July 1, 2003, and beginning again on the 
25effective date of this amendatory Act of the 97th General 
26Assembly and thereafter, coal and aggregate exploration, 
 
 
09800SB2086sam001- 36 -LRB098 06617 HLH 44446 a


1mining, offhighway hauling,
processing,
maintenance, and 
2reclamation equipment, including
replacement parts and 
3equipment, and including
equipment
purchased for lease, but 
4excluding motor vehicles required to be registered
under the 
5Illinois Vehicle Code.

6 (13) Beginning January 1, 1992 and through June 30, 2016, 
7food for human consumption that is to be consumed off the 
8premises
where it is sold (other than alcoholic beverages, soft 
9drinks and food that
has been prepared for immediate 
10consumption) and prescription and
non-prescription medicines, 
11drugs, medical appliances, and insulin, urine
testing 
12materials, syringes, and needles used by diabetics, for human 
13use,
when purchased for use by a person receiving medical 
14assistance under
Article V of the Illinois Public Aid Code who 
15resides in a licensed
long-term care facility, as defined in 
16the Nursing Home Care Act, or in a licensed facility as defined 
17in the ID/DD Community Care Act or the Specialized Mental 
18Health Rehabilitation Act.

19 (14) Semen used for artificial insemination of livestock 
20for direct
agricultural production.

21 (15) Horses, or interests in horses, registered with and 
22meeting the
requirements of any of the
Arabian Horse Club 
23Registry of America, Appaloosa Horse Club, American Quarter

24Horse Association, United States
Trotting Association, or 
25Jockey Club, as appropriate, used for
purposes of breeding or 
26racing for prizes. This item (15) is exempt from the provisions 
 
 
09800SB2086sam001- 37 -LRB098 06617 HLH 44446 a


1of Section 3-55, and the exemption provided for under this item 
2(15) applies for all periods beginning May 30, 1995, but no 
3claim for credit or refund is allowed on or after January 1, 
42008 (the effective date of Public Act 95-88)
for such taxes 
5paid during the period beginning May 30, 2000 and ending on 
6January 1, 2008 (the effective date of Public Act 95-88).

7 (16) Computers and communications equipment utilized for 
8any
hospital
purpose
and equipment used in the diagnosis,

9analysis, or treatment of hospital patients sold to a lessor 
10who leases the
equipment, under a lease of one year or longer 
11executed or in effect at the
time of the purchase, to a

12hospital
that has been issued an active tax exemption 
13identification number by the
Department under Section 1g of the 
14Retailers' Occupation Tax Act.

15 (17) Personal property sold to a lessor who leases the

16property, under a
lease of one year or longer executed or in 
17effect at the time of the purchase,
to a governmental body
that 
18has been issued an active tax exemption identification number 
19by the
Department under Section 1g of the Retailers' Occupation 
20Tax Act.

21 (18) Beginning with taxable years ending on or after 
22December
31, 1995
and
ending with taxable years ending on or 
23before December 31, 2004,
personal property that is
donated for 
24disaster relief to be used in a State or federally declared

25disaster area in Illinois or bordering Illinois by a 
26manufacturer or retailer
that is registered in this State to a 
 
 
09800SB2086sam001- 38 -LRB098 06617 HLH 44446 a


1corporation, society, association,
foundation, or institution 
2that has been issued a sales tax exemption
identification 
3number by the Department that assists victims of the disaster

4who reside within the declared disaster area.

5 (19) Beginning with taxable years ending on or after 
6December
31, 1995 and
ending with taxable years ending on or 
7before December 31, 2004, personal
property that is used in the 
8performance of infrastructure repairs in this
State, including 
9but not limited to municipal roads and streets, access roads,

10bridges, sidewalks, waste disposal systems, water and sewer 
11line extensions,
water distribution and purification 
12facilities, storm water drainage and
retention facilities, and 
13sewage treatment facilities, resulting from a State
or 
14federally declared disaster in Illinois or bordering Illinois 
15when such
repairs are initiated on facilities located in the 
16declared disaster area
within 6 months after the disaster.

17 (20) Beginning July 1, 1999, game or game birds sold at a 
18"game breeding
and
hunting preserve area" as that term is used

19in the
Wildlife Code. This paragraph is exempt from the 
20provisions
of
Section 3-55.

21 (21) A motor vehicle, as that term is defined in Section 
221-146
of the
Illinois Vehicle Code, that is donated to a 
23corporation, limited liability
company, society, association, 
24foundation, or institution that is determined by
the Department 
25to be organized and operated exclusively for educational

26purposes. For purposes of this exemption, "a corporation, 
 
 
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1limited liability
company, society, association, foundation, 
2or institution organized and
operated
exclusively for 
3educational purposes" means all tax-supported public schools,

4private schools that offer systematic instruction in useful 
5branches of
learning by methods common to public schools and 
6that compare favorably in
their scope and intensity with the 
7course of study presented in tax-supported
schools, and 
8vocational or technical schools or institutes organized and

9operated exclusively to provide a course of study of not less 
10than 6 weeks
duration and designed to prepare individuals to 
11follow a trade or to pursue a
manual, technical, mechanical, 
12industrial, business, or commercial
occupation.

13 (22) Beginning January 1, 2000, personal property, 
14including
food,
purchased through fundraising
events for the 
15benefit of
a public or private elementary or
secondary school, 
16a group of those schools, or one or more school
districts if 
17the events are
sponsored by an entity recognized by the school 
18district that consists
primarily of volunteers and includes

19parents and teachers of the school children. This paragraph 
20does not apply
to fundraising
events (i) for the benefit of 
21private home instruction or (ii)
for which the fundraising 
22entity purchases the personal property sold at
the events from 
23another individual or entity that sold the property for the

24purpose of resale by the fundraising entity and that
profits 
25from the sale to the
fundraising entity. This paragraph is 
26exempt
from the provisions
of Section 3-55.

 
 
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1 (23) Beginning January 1, 2000
and through December 31, 
22001, new or used automatic vending
machines that prepare and 
3serve hot food and beverages, including coffee, soup,
and
other 
4items, and replacement parts for these machines.
Beginning 
5January 1,
2002 and through June 30, 2003, machines and parts 
6for
machines used in commercial, coin-operated amusement
and 
7vending business if a use or occupation tax is paid on the 
8gross receipts
derived from
the use of the commercial, 
9coin-operated amusement and vending machines.
This paragraph 
10is exempt from the provisions of Section 3-55.

11 (24) Beginning
on the effective date of this amendatory Act 
12of the 92nd General Assembly,
computers and communications 
13equipment
utilized for any hospital purpose and equipment used 
14in the diagnosis,
analysis, or treatment of hospital patients 
15sold to a lessor who leases the
equipment, under a lease of one 
16year or longer executed or in effect at the
time of the 
17purchase, to a hospital that has been issued an active tax

18exemption identification number by the Department under 
19Section 1g of the
Retailers' Occupation Tax Act. This paragraph 
20is exempt from the provisions of
Section 3-55.

21 (25) Beginning
on the effective date of this amendatory Act 
22of the 92nd General Assembly,
personal property sold to a 
23lessor who
leases the property, under a lease of one year or 
24longer executed or in effect
at the time of the purchase, to a 
25governmental body that has been issued an
active tax exemption 
26identification number by the Department under Section 1g
of the 
 
 
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1Retailers' Occupation Tax Act. This paragraph is exempt from 
2the
provisions of Section 3-55.

3 (26) Beginning on January 1, 2002 and through June 30, 
42016, tangible personal property
purchased
from an Illinois 
5retailer by a taxpayer engaged in centralized purchasing

6activities in Illinois who will, upon receipt of the property 
7in Illinois,
temporarily store the property in Illinois (i) for 
8the purpose of subsequently
transporting it outside this State 
9for use or consumption thereafter solely
outside this State or 
10(ii) for the purpose of being processed, fabricated, or

11manufactured into, attached to, or incorporated into other 
12tangible personal
property to be transported outside this State 
13and thereafter used or consumed
solely outside this State. The 
14Director of Revenue shall, pursuant to rules
adopted in 
15accordance with the Illinois Administrative Procedure Act, 
16issue a
permit to any taxpayer in good standing with the 
17Department who is eligible for
the exemption under this 
18paragraph (26). The permit issued under
this paragraph (26) 
19shall authorize the holder, to the extent and
in the manner 
20specified in the rules adopted under this Act, to purchase

21tangible personal property from a retailer exempt from the 
22taxes imposed by
this Act. Taxpayers shall maintain all 
23necessary books and records to
substantiate the use and 
24consumption of all such tangible personal property
outside of 
25the State of Illinois.

26 (27) Beginning January 1, 2008, tangible personal property 
 
 
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1used in the construction or maintenance of a community water 
2supply, as defined under Section 3.145 of the Environmental 
3Protection Act, that is operated by a not-for-profit 
4corporation that holds a valid water supply permit issued under 
5Title IV of the Environmental Protection Act. This paragraph is 
6exempt from the provisions of Section 3-55.

7 (28) Tangible personal property sold to a 
8public-facilities corporation, as described in Section 
911-65-10 of the Illinois Municipal Code, for purposes of 
10constructing or furnishing a municipal convention hall, but 
11only if the legal title to the municipal convention hall is 
12transferred to the municipality without any further 
13consideration by or on behalf of the municipality at the time 
14of the completion of the municipal convention hall or upon the 
15retirement or redemption of any bonds or other debt instruments 
16issued by the public-facilities corporation in connection with 
17the development of the municipal convention hall. This 
18exemption includes existing public-facilities corporations as 
19provided in Section 11-65-25 of the Illinois Municipal Code. 
20This paragraph is exempt from the provisions of Section 3-55. 
21 (29) Beginning January 1, 2010, materials, parts, 
22equipment, components, and furnishings incorporated into or 
23upon an aircraft as part of the modification, refurbishment, 
24completion, replacement, repair, or maintenance of the 
25aircraft. This exemption includes consumable supplies used in 
26the modification, refurbishment, completion, replacement, 
 
 
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1repair, and maintenance of aircraft, but excludes any 
2materials, parts, equipment, components, and consumable 
3supplies used in the modification, replacement, repair, and 
4maintenance of aircraft engines or power plants, whether such 
5engines or power plants are installed or uninstalled upon any 
6such aircraft. "Consumable supplies" include, but are not 
7limited to, adhesive, tape, sandpaper, general purpose 
8lubricants, cleaning solution, latex gloves, and protective 
9films. This exemption applies only to those organizations that 
10(i) hold an Air Agency Certificate and are empowered to operate 
11an approved repair station by the Federal Aviation 
12Administration, (ii) have a Class IV Rating, and (iii) conduct 
13operations in accordance with Part 145 of the Federal Aviation 
14Regulations. The exemption does not include aircraft operated 
15by a commercial air carrier providing scheduled passenger air 
16service pursuant to authority issued under Part 121 or Part 129 
17of the Federal Aviation Regulations. 
18 (30) Until January 1, 2015, firearm safety devices, 
19including safes, lock boxes, trigger and barrel locks, and 
20other items designed to enhance home firearm safety. 
21(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; 
2296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. 
237-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. 
241-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 
257-9-12.)


 
 
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1 Section 20. The Retailers' Occupation Tax Act is amended by 
2changing Section 2-5 as follows:



3 (35 ILCS 120/2-5)


4 Sec. 2-5. Exemptions. Gross receipts from proceeds from the 
5sale of
the following tangible personal property are exempt 
6from the tax imposed
by this Act:

7 (1) Farm chemicals.

8 (2) Farm machinery and equipment, both new and used, 
9including that
manufactured on special order, certified by the 
10purchaser to be used
primarily for production agriculture or 
11State or federal agricultural
programs, including individual 
12replacement parts for the machinery and
equipment, including 
13machinery and equipment purchased for lease,
and including 
14implements of husbandry defined in Section 1-130 of
the 
15Illinois Vehicle Code, farm machinery and agricultural 
16chemical and
fertilizer spreaders, and nurse wagons required to 
17be registered
under Section 3-809 of the Illinois Vehicle Code,

18but
excluding other motor vehicles required to be registered 
19under the Illinois
Vehicle Code.
Horticultural polyhouses or 
20hoop houses used for propagating, growing, or
overwintering 
21plants shall be considered farm machinery and equipment under

22this item (2).
Agricultural chemical tender tanks and dry boxes 
23shall include units sold
separately from a motor vehicle 
24required to be licensed and units sold mounted
on a motor 
25vehicle required to be licensed, if the selling price of the 
 
 
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1tender
is separately stated.

2 Farm machinery and equipment shall include precision 
3farming equipment
that is
installed or purchased to be 
4installed on farm machinery and equipment
including, but not 
5limited to, tractors, harvesters, sprayers, planters,
seeders, 
6or spreaders.
Precision farming equipment includes, but is not 
7limited to,
soil testing sensors, computers, monitors, 
8software, global positioning
and mapping systems, and other 
9such equipment.

10 Farm machinery and equipment also includes computers, 
11sensors, software, and
related equipment used primarily in the

12computer-assisted operation of production agriculture 
13facilities, equipment,
and activities such as, but
not limited 
14to,
the collection, monitoring, and correlation of
animal and 
15crop data for the purpose of
formulating animal diets and 
16agricultural chemicals. This item (2) is exempt
from the 
17provisions of
Section 2-70.

18 (3) Until July 1, 2003, distillation machinery and 
19equipment, sold as a
unit or kit,
assembled or installed by the 
20retailer, certified by the user to be used
only for the 
21production of ethyl alcohol that will be used for consumption

22as motor fuel or as a component of motor fuel for the personal 
23use of the
user, and not subject to sale or resale.

24 (4) Until July 1, 2003 and beginning again September 1, 
252004 through August 30, 2014, graphic arts machinery and 
26equipment, including
repair and
replacement parts, both new and 
 
 
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1used, and including that manufactured on
special order or 
2purchased for lease, certified by the purchaser to be used

3primarily for graphic arts production.
Equipment includes 
4chemicals or
chemicals acting as catalysts but only if
the 
5chemicals or chemicals acting as catalysts effect a direct and 
6immediate
change upon a
graphic arts product.

7 (5) A motor vehicle of the first division, a motor vehicle 
8of the second division that is a self contained motor vehicle 
9designed or permanently converted to provide living quarters 
10for recreational, camping, or travel use, with direct walk 
11through access to the living quarters from the driver's seat, 
12or a motor vehicle of the second division that is of the van 
13configuration designed for the transportation of not less than 
147 nor more than 16 passengers, as defined in Section 1-146 of 
15the Illinois Vehicle Code, that is used for automobile renting, 
16as defined in the Automobile Renting Occupation and Use Tax 
17Act. This paragraph is exempt from
the provisions of Section 
182-70.

19 (6) Personal property sold by a teacher-sponsored student 
20organization
affiliated with an elementary or secondary school 
21located in Illinois.

22 (7) Until July 1, 2003, proceeds of that portion of the 
23selling price of
a passenger car the
sale of which is subject 
24to the Replacement Vehicle Tax.

25 (8) Personal property sold to an Illinois county fair 
26association for
use in conducting, operating, or promoting the 
 
 
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1county fair.

2 (9) Personal property sold to a not-for-profit arts
or 
3cultural organization that establishes, by proof required by 
4the Department
by
rule, that it has received an exemption under 
5Section 501(c)(3) of the
Internal Revenue Code and that is 
6organized and operated primarily for the
presentation
or 
7support of arts or cultural programming, activities, or 
8services. These
organizations include, but are not limited to, 
9music and dramatic arts
organizations such as symphony 
10orchestras and theatrical groups, arts and
cultural service 
11organizations, local arts councils, visual arts organizations,

12and media arts organizations.
On and after the effective date 
13of this amendatory Act of the 92nd General
Assembly, however, 
14an entity otherwise eligible for this exemption shall not
make 
15tax-free purchases unless it has an active identification 
16number issued by
the Department.

17 (10) Personal property sold by a corporation, society, 
18association,
foundation, institution, or organization, other 
19than a limited liability
company, that is organized and 
20operated as a not-for-profit service enterprise
for the benefit 
21of persons 65 years of age or older if the personal property

22was not purchased by the enterprise for the purpose of resale 
23by the
enterprise.

24 (11) Personal property sold to a governmental body, to a 
25corporation,
society, association, foundation, or institution 
26organized and operated
exclusively for charitable, religious, 
 
 
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1or educational purposes, or to a
not-for-profit corporation, 
2society, association, foundation, institution,
or organization 
3that has no compensated officers or employees and that is

4organized and operated primarily for the recreation of persons 
555 years of
age or older. A limited liability company may 
6qualify for the exemption under
this paragraph only if the 
7limited liability company is organized and operated

8exclusively for educational purposes. On and after July 1, 
91987, however, no
entity otherwise eligible for this exemption 
10shall make tax-free purchases
unless it has an active 
11identification number issued by the Department.

12 (12) Tangible personal property sold to
interstate 
13carriers
for hire for use as
rolling stock moving in interstate 
14commerce or to lessors under leases of
one year or longer 
15executed or in effect at the time of purchase by
interstate 
16carriers for hire for use as rolling stock moving in interstate

17commerce and equipment operated by a telecommunications 
18provider, licensed as a
common carrier by the Federal 
19Communications Commission, which is permanently
installed in 
20or affixed to aircraft moving in interstate commerce.

21 (12-5) On and after July 1, 2003 and through June 30, 2004, 
22motor vehicles of the second division
with a gross vehicle 
23weight in excess of 8,000 pounds
that
are
subject to the 
24commercial distribution fee imposed under Section 3-815.1 of

25the Illinois
Vehicle Code. Beginning on July 1, 2004 and 
26through June 30, 2005, the use in this State of motor vehicles 
 
 
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1of the second division: (i) with a gross vehicle weight rating 
2in excess of 8,000 pounds; (ii) that are subject to the 
3commercial distribution fee imposed under Section 3-815.1 of 
4the Illinois Vehicle Code; and (iii) that are primarily used 
5for commercial purposes. Through June 30, 2005, this
exemption 
6applies to repair and replacement parts added
after the
initial 
7purchase of such a motor vehicle if that motor vehicle is used 
8in a
manner that
would qualify for the rolling stock exemption 
9otherwise provided for in this
Act. For purposes of this 
10paragraph, "used for commercial purposes" means the 
11transportation of persons or property in furtherance of any 
12commercial or industrial enterprise whether for-hire or not.


13 (13) Proceeds from sales to owners, lessors, or
shippers of

14tangible personal property that is utilized by interstate 
15carriers for
hire for use as rolling stock moving in interstate 
16commerce
and equipment operated by a telecommunications 
17provider, licensed as a
common carrier by the Federal 
18Communications Commission, which is
permanently installed in 
19or affixed to aircraft moving in interstate commerce.

20 (14) Machinery and equipment that will be used by the 
21purchaser, or a
lessee of the purchaser, primarily in the 
22process of manufacturing or
assembling tangible personal 
23property for wholesale or retail sale or
lease, whether the 
24sale or lease is made directly by the manufacturer or by
some 
25other person, whether the materials used in the process are 
26owned by
the manufacturer or some other person, or whether the 
 
 
09800SB2086sam001- 50 -LRB098 06617 HLH 44446 a


1sale or lease is made
apart from or as an incident to the 
2seller's engaging in the service
occupation of producing 
3machines, tools, dies, jigs, patterns, gauges, or
other similar 
4items of no commercial value on special order for a particular

5purchaser.

6 (15) Proceeds of mandatory service charges separately 
7stated on
customers' bills for purchase and consumption of food 
8and beverages, to the
extent that the proceeds of the service 
9charge are in fact turned over as
tips or as a substitute for 
10tips to the employees who participate directly
in preparing, 
11serving, hosting or cleaning up the food or beverage function

12with respect to which the service charge is imposed.

13 (16) Petroleum products sold to a purchaser if the seller

14is prohibited by federal law from charging tax to the 
15purchaser.

16 (17) Tangible personal property sold to a common carrier by 
17rail or
motor that
receives the physical possession of the 
18property in Illinois and that
transports the property, or 
19shares with another common carrier in the
transportation of the 
20property, out of Illinois on a standard uniform bill
of lading 
21showing the seller of the property as the shipper or consignor 
22of
the property to a destination outside Illinois, for use 
23outside Illinois.

24 (18) Legal tender, currency, medallions, or gold or silver 
25coinage
issued by the State of Illinois, the government of the 
26United States of
America, or the government of any foreign 
 
 
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1country, and bullion.

2 (19) Until July 1 2003, oil field exploration, drilling, 
3and production
equipment, including
(i) rigs and parts of rigs, 
4rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and 
5tubular goods, including casing and
drill strings, (iii) pumps 
6and pump-jack units, (iv) storage tanks and flow
lines, (v) any 
7individual replacement part for oil field exploration,

8drilling, and production equipment, and (vi) machinery and 
9equipment purchased
for lease; but
excluding motor vehicles 
10required to be registered under the Illinois
Vehicle Code.

11 (20) Photoprocessing machinery and equipment, including 
12repair and
replacement parts, both new and used, including that 
13manufactured on
special order, certified by the purchaser to be 
14used primarily for
photoprocessing, and including 
15photoprocessing machinery and equipment
purchased for lease.

16 (21) Until July 1, 2003, and beginning again on the 
17effective date of this amendatory Act of the 97th General 
18Assembly and thereafter, coal and aggregate exploration, 
19mining, offhighway hauling,
processing,
maintenance, and 
20reclamation equipment, including
replacement parts and 
21equipment, and including
equipment purchased for lease, but 
22excluding motor vehicles required to be
registered under the 
23Illinois Vehicle Code.

24 (22) Fuel and petroleum products sold to or used by an air 
25carrier,
certified by the carrier to be used for consumption, 
26shipment, or storage
in the conduct of its business as an air 
 
 
09800SB2086sam001- 52 -LRB098 06617 HLH 44446 a


1common carrier, for a flight
destined for or returning from a 
2location or locations
outside the United States without regard 
3to previous or subsequent domestic
stopovers.

4 (23) A transaction in which the purchase order is received 
5by a florist
who is located outside Illinois, but who has a 
6florist located in Illinois
deliver the property to the 
7purchaser or the purchaser's donee in Illinois.

8 (24) Fuel consumed or used in the operation of ships, 
9barges, or vessels
that are used primarily in or for the 
10transportation of property or the
conveyance of persons for 
11hire on rivers bordering on this State if the
fuel is delivered 
12by the seller to the purchaser's barge, ship, or vessel
while 
13it is afloat upon that bordering river.

14 (25) Except as provided in item (25-5) of this Section, a

15motor vehicle sold in this State to a nonresident even though 
16the
motor vehicle is delivered to the nonresident in this 
17State, if the motor
vehicle is not to be titled in this State, 
18and if a drive-away permit
is issued to the motor vehicle as 
19provided in Section 3-603 of the Illinois
Vehicle Code or if 
20the nonresident purchaser has vehicle registration
plates to 
21transfer to the motor vehicle upon returning to his or her home

22state. The issuance of the drive-away permit or having
the

23out-of-state registration plates to be transferred is prima 
24facie evidence
that the motor vehicle will not be titled in 
25this State.

26 (25-5) The exemption under item (25) does not apply if the 
 
 
09800SB2086sam001- 53 -LRB098 06617 HLH 44446 a


1state in which the motor vehicle will be titled does not allow 
2a reciprocal exemption for a motor vehicle sold and delivered 
3in that state to an Illinois resident but titled in Illinois. 
4The tax collected under this Act on the sale of a motor vehicle 
5in this State to a resident of another state that does not 
6allow a reciprocal exemption shall be imposed at a rate equal 
7to the state's rate of tax on taxable property in the state in 
8which the purchaser is a resident, except that the tax shall 
9not exceed the tax that would otherwise be imposed under this 
10Act. At the time of the sale, the purchaser shall execute a 
11statement, signed under penalty of perjury, of his or her 
12intent to title the vehicle in the state in which the purchaser 
13is a resident within 30 days after the sale and of the fact of 
14the payment to the State of Illinois of tax in an amount 
15equivalent to the state's rate of tax on taxable property in 
16his or her state of residence and shall submit the statement to 
17the appropriate tax collection agency in his or her state of 
18residence. In addition, the retailer must retain a signed copy 
19of the statement in his or her records. Nothing in this item 
20shall be construed to require the removal of the vehicle from 
21this state following the filing of an intent to title the 
22vehicle in the purchaser's state of residence if the purchaser 
23titles the vehicle in his or her state of residence within 30 
24days after the date of sale. The tax collected under this Act 
25in accordance with this item (25-5) shall be proportionately 
26distributed as if the tax were collected at the 6.25% general 
 
 
09800SB2086sam001- 54 -LRB098 06617 HLH 44446 a


1rate imposed under this Act.

2 (25-7) Beginning on July 1, 2007, no tax is imposed under 
3this Act on the sale of an aircraft, as defined in Section 3 of 
4the Illinois Aeronautics Act, if all of the following 
5conditions are met:
6  (1) the aircraft leaves this State within 15 days after 
7 the later of either the issuance of the final billing for 
8 the sale of the aircraft, or the authorized approval for 
9 return to service, completion of the maintenance record 
10 entry, and completion of the test flight and ground test 
11 for inspection, as required by 14 C.F.R. 91.407;
12  (2) the aircraft is not based or registered in this 
13 State after the sale of the aircraft; and
14  (3) the seller retains in his or her books and records 
15 and provides to the Department a signed and dated 
16 certification from the purchaser, on a form prescribed by 
17 the Department, certifying that the requirements of this 
18 item (25-7) are met. The certificate must also include the 
19 name and address of the purchaser, the address of the 
20 location where the aircraft is to be titled or registered, 
21 the address of the primary physical location of the 
22 aircraft, and other information that the Department may 
23 reasonably require.
24 For purposes of this item (25-7):
25 "Based in this State" means hangared, stored, or otherwise 
26used, excluding post-sale customizations as defined in this 
 
 
09800SB2086sam001- 55 -LRB098 06617 HLH 44446 a


1Section, for 10 or more days in each 12-month period 
2immediately following the date of the sale of the aircraft.
3 "Registered in this State" means an aircraft registered 
4with the Department of Transportation, Aeronautics Division, 
5or titled or registered with the Federal Aviation 
6Administration to an address located in this State.
7 This paragraph (25-7) is exempt from the provisions
of

8Section 2-70.

9 (26) Semen used for artificial insemination of livestock 
10for direct
agricultural production.

11 (27) Horses, or interests in horses, registered with and 
12meeting the
requirements of any of the
Arabian Horse Club 
13Registry of America, Appaloosa Horse Club, American Quarter

14Horse Association, United States
Trotting Association, or 
15Jockey Club, as appropriate, used for
purposes of breeding or 
16racing for prizes. This item (27) is exempt from the provisions 
17of Section 2-70, and the exemption provided for under this item 
18(27) applies for all periods beginning May 30, 1995, but no 
19claim for credit or refund is allowed on or after January 1, 
202008 (the effective date of Public Act 95-88)
for such taxes 
21paid during the period beginning May 30, 2000 and ending on 
22January 1, 2008 (the effective date of Public Act 95-88).

23 (28) Computers and communications equipment utilized for 
24any
hospital
purpose
and equipment used in the diagnosis,

25analysis, or treatment of hospital patients sold to a lessor 
26who leases the
equipment, under a lease of one year or longer 
 
 
09800SB2086sam001- 56 -LRB098 06617 HLH 44446 a


1executed or in effect at the
time of the purchase, to a

2hospital
that has been issued an active tax exemption 
3identification number by the
Department under Section 1g of 
4this Act.

5 (29) Personal property sold to a lessor who leases the

6property, under a
lease of one year or longer executed or in 
7effect at the time of the purchase,
to a governmental body
that 
8has been issued an active tax exemption identification number 
9by the
Department under Section 1g of this Act.

10 (30) Beginning with taxable years ending on or after 
11December
31, 1995
and
ending with taxable years ending on or 
12before December 31, 2004,
personal property that is
donated for 
13disaster relief to be used in a State or federally declared

14disaster area in Illinois or bordering Illinois by a 
15manufacturer or retailer
that is registered in this State to a 
16corporation, society, association,
foundation, or institution 
17that has been issued a sales tax exemption
identification 
18number by the Department that assists victims of the disaster

19who reside within the declared disaster area.

20 (31) Beginning with taxable years ending on or after 
21December
31, 1995 and
ending with taxable years ending on or 
22before December 31, 2004, personal
property that is used in the 
23performance of infrastructure repairs in this
State, including 
24but not limited to municipal roads and streets, access roads,

25bridges, sidewalks, waste disposal systems, water and sewer 
26line extensions,
water distribution and purification 
 
 
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1facilities, storm water drainage and
retention facilities, and 
2sewage treatment facilities, resulting from a State
or 
3federally declared disaster in Illinois or bordering Illinois 
4when such
repairs are initiated on facilities located in the 
5declared disaster area
within 6 months after the disaster.

6 (32) Beginning July 1, 1999, game or game birds sold at a 
7"game breeding
and
hunting preserve area" as that term is used

8in the
Wildlife Code. This paragraph is exempt from the 
9provisions
of
Section 2-70.

10 (33) A motor vehicle, as that term is defined in Section 
111-146
of the
Illinois Vehicle Code, that is donated to a 
12corporation, limited liability
company, society, association, 
13foundation, or institution that is determined by
the Department 
14to be organized and operated exclusively for educational

15purposes. For purposes of this exemption, "a corporation, 
16limited liability
company, society, association, foundation, 
17or institution organized and
operated
exclusively for 
18educational purposes" means all tax-supported public schools,

19private schools that offer systematic instruction in useful 
20branches of
learning by methods common to public schools and 
21that compare favorably in
their scope and intensity with the 
22course of study presented in tax-supported
schools, and 
23vocational or technical schools or institutes organized and

24operated exclusively to provide a course of study of not less 
25than 6 weeks
duration and designed to prepare individuals to 
26follow a trade or to pursue a
manual, technical, mechanical, 
 
 
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1industrial, business, or commercial
occupation.

2 (34) Beginning January 1, 2000, personal property, 
3including food, purchased
through fundraising events for the 
4benefit of a public or private elementary or
secondary school, 
5a group of those schools, or one or more school districts if

6the events are sponsored by an entity recognized by the school 
7district that
consists primarily of volunteers and includes 
8parents and teachers of the
school children. This paragraph 
9does not apply to fundraising events (i) for
the benefit of 
10private home instruction or (ii) for which the fundraising

11entity purchases the personal property sold at the events from 
12another
individual or entity that sold the property for the 
13purpose of resale by the
fundraising entity and that profits 
14from the sale to the fundraising entity.
This paragraph is 
15exempt from the provisions of Section 2-70.

16 (35) Beginning January 1, 2000 and through December 31, 
172001, new or used
automatic vending machines that prepare and 
18serve hot food and beverages,
including coffee, soup, and other 
19items, and replacement parts for these
machines. Beginning 
20January 1, 2002 and through June 30, 2003, machines
and parts 
21for machines used in
commercial, coin-operated amusement and 
22vending business if a use or occupation
tax is paid on the 
23gross receipts derived from the use of the commercial,

24coin-operated amusement and vending machines. This paragraph 
25is exempt from
the provisions of Section 2-70.

26 (35-5) Beginning August 23, 2001 and through June 30, 2016, 
 
 
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1food for human consumption that is to be consumed off
the 
2premises where it is sold (other than alcoholic beverages, soft 
3drinks,
and food that has been prepared for immediate 
4consumption) and prescription
and nonprescription medicines, 
5drugs, medical appliances, and insulin, urine
testing 
6materials, syringes, and needles used by diabetics, for human 
7use, when
purchased for use by a person receiving medical 
8assistance under Article V of
the Illinois Public Aid Code who 
9resides in a licensed long-term care facility,
as defined in 
10the Nursing Home Care Act, or a licensed facility as defined in 
11the ID/DD Community Care Act or the Specialized Mental Health 
12Rehabilitation Act.

13 (36) Beginning August 2, 2001, computers and 
14communications equipment
utilized for any hospital purpose and 
15equipment used in the diagnosis,
analysis, or treatment of 
16hospital patients sold to a lessor who leases the
equipment, 
17under a lease of one year or longer executed or in effect at 
18the
time of the purchase, to a hospital that has been issued an 
19active tax
exemption identification number by the Department 
20under Section 1g of this Act.
This paragraph is exempt from the 
21provisions of Section 2-70.

22 (37) Beginning August 2, 2001, personal property sold to a 
23lessor who
leases the property, under a lease of one year or 
24longer executed or in effect
at the time of the purchase, to a 
25governmental body that has been issued an
active tax exemption 
26identification number by the Department under Section 1g
of 
 
 
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1this Act. This paragraph is exempt from the provisions of 
2Section 2-70.

3 (38) Beginning on January 1, 2002 and through June 30, 
42016, tangible personal property purchased
from an Illinois 
5retailer by a taxpayer engaged in centralized purchasing

6activities in Illinois who will, upon receipt of the property 
7in Illinois,
temporarily store the property in Illinois (i) for 
8the purpose of subsequently
transporting it outside this State 
9for use or consumption thereafter solely
outside this State or 
10(ii) for the purpose of being processed, fabricated, or

11manufactured into, attached to, or incorporated into other 
12tangible personal
property to be transported outside this State 
13and thereafter used or consumed
solely outside this State. The 
14Director of Revenue shall, pursuant to rules
adopted in 
15accordance with the Illinois Administrative Procedure Act, 
16issue a
permit to any taxpayer in good standing with the 
17Department who is eligible for
the exemption under this 
18paragraph (38). The permit issued under
this paragraph (38) 
19shall authorize the holder, to the extent and
in the manner 
20specified in the rules adopted under this Act, to purchase

21tangible personal property from a retailer exempt from the 
22taxes imposed by
this Act. Taxpayers shall maintain all 
23necessary books and records to
substantiate the use and 
24consumption of all such tangible personal property
outside of 
25the State of Illinois.

26 (39) Beginning January 1, 2008, tangible personal property 
 
 
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1used in the construction or maintenance of a community water 
2supply, as defined under Section 3.145 of the Environmental 
3Protection Act, that is operated by a not-for-profit 
4corporation that holds a valid water supply permit issued under 
5Title IV of the Environmental Protection Act. This paragraph is 
6exempt from the provisions of Section 2-70.

7 (40) Beginning January 1, 2010, materials, parts, 
8equipment, components, and furnishings incorporated into or 
9upon an aircraft as part of the modification, refurbishment, 
10completion, replacement, repair, or maintenance of the 
11aircraft. This exemption includes consumable supplies used in 
12the modification, refurbishment, completion, replacement, 
13repair, and maintenance of aircraft, but excludes any 
14materials, parts, equipment, components, and consumable 
15supplies used in the modification, replacement, repair, and 
16maintenance of aircraft engines or power plants, whether such 
17engines or power plants are installed or uninstalled upon any 
18such aircraft. "Consumable supplies" include, but are not 
19limited to, adhesive, tape, sandpaper, general purpose 
20lubricants, cleaning solution, latex gloves, and protective 
21films. This exemption applies only to those organizations that 
22(i) hold an Air Agency Certificate and are empowered to operate 
23an approved repair station by the Federal Aviation 
24Administration, (ii) have a Class IV Rating, and (iii) conduct 
25operations in accordance with Part 145 of the Federal Aviation 
26Regulations. The exemption does not include aircraft operated 
 
 
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1by a commercial air carrier providing scheduled passenger air 
2service pursuant to authority issued under Part 121 or Part 129 
3of the Federal Aviation Regulations. 
4 (41) Tangible personal property sold to a 
5public-facilities corporation, as described in Section 
611-65-10 of the Illinois Municipal Code, for purposes of 
7constructing or furnishing a municipal convention hall, but 
8only if the legal title to the municipal convention hall is 
9transferred to the municipality without any further 
10consideration by or on behalf of the municipality at the time 
11of the completion of the municipal convention hall or upon the 
12retirement or redemption of any bonds or other debt instruments 
13issued by the public-facilities corporation in connection with 
14the development of the municipal convention hall. This 
15exemption includes existing public-facilities corporations as 
16provided in Section 11-65-25 of the Illinois Municipal Code. 
17This paragraph is exempt from the provisions of Section 2-70. 
18 (42) Until January 1, 2015, firearm safety devices, 
19including safes, lock boxes, trigger and barrel locks, and 
20other items designed to enhance home firearm safety. 
21(Source: P.A. 96-116, eff. 7-31-09; 96-339, eff. 7-1-10; 
2296-532, eff. 8-14-09; 96-759, eff. 1-1-10; 96-1000, eff. 
237-2-10; 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227, eff. 
241-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 
257-9-12.)".