Bill Amendment: IL SB0686 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: REVENUE-TECH
Status: 2021-01-13 - Session Sine Die [SB0686 Detail]
Download: Illinois-2019-SB0686-Senate_Amendment_001.html
Bill Title: REVENUE-TECH
Status: 2021-01-13 - Session Sine Die [SB0686 Detail]
Download: Illinois-2019-SB0686-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 686
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2 | AMENDMENT NO. ______. Amend Senate Bill 686 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Illinois Broadband Investment Act.
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6 | Section 3. The Illinois Procurement Code is amended by | ||||||
7 | changing Section 1-10 as follows:
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8 | (30 ILCS 500/1-10)
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9 | Sec. 1-10. Application.
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10 | (a) This Code applies only to procurements for which | ||||||
11 | bidders, offerors, potential contractors, or contractors were | ||||||
12 | first
solicited on or after July 1, 1998. This Code shall not | ||||||
13 | be construed to affect
or impair any contract, or any provision | ||||||
14 | of a contract, entered into based on a
solicitation prior to | ||||||
15 | the implementation date of this Code as described in
Article |
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1 | 99, including but not limited to any covenant entered into with | ||||||
2 | respect
to any revenue bonds or similar instruments.
All | ||||||
3 | procurements for which contracts are solicited between the | ||||||
4 | effective date
of Articles 50 and 99 and July 1, 1998 shall be | ||||||
5 | substantially in accordance
with this Code and its intent.
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6 | (b) This Code shall apply regardless of the source of the | ||||||
7 | funds with which
the contracts are paid, including federal | ||||||
8 | assistance moneys. This
Code shall
not apply to:
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9 | (1) Contracts between the State and its political | ||||||
10 | subdivisions or other
governments, or between State | ||||||
11 | governmental bodies, except as specifically provided in | ||||||
12 | this Code.
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13 | (2) Grants, except for the filing requirements of | ||||||
14 | Section 20-80.
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15 | (3) Purchase of care, except as provided in Section | ||||||
16 | 5-30.6 of the Illinois Public Aid
Code and this Section.
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17 | (4) Hiring of an individual as employee and not as an | ||||||
18 | independent
contractor, whether pursuant to an employment | ||||||
19 | code or policy or by contract
directly with that | ||||||
20 | individual.
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21 | (5) Collective bargaining contracts.
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22 | (6) Purchase of real estate, except that notice of this | ||||||
23 | type of contract with a value of more than $25,000 must be | ||||||
24 | published in the Procurement Bulletin within 10 calendar | ||||||
25 | days after the deed is recorded in the county of | ||||||
26 | jurisdiction. The notice shall identify the real estate |
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1 | purchased, the names of all parties to the contract, the | ||||||
2 | value of the contract, and the effective date of the | ||||||
3 | contract.
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4 | (7) Contracts necessary to prepare for anticipated | ||||||
5 | litigation, enforcement
actions, or investigations, | ||||||
6 | provided
that the chief legal counsel to the Governor shall | ||||||
7 | give his or her prior
approval when the procuring agency is | ||||||
8 | one subject to the jurisdiction of the
Governor, and | ||||||
9 | provided that the chief legal counsel of any other | ||||||
10 | procuring
entity
subject to this Code shall give his or her | ||||||
11 | prior approval when the procuring
entity is not one subject | ||||||
12 | to the jurisdiction of the Governor.
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13 | (8) (Blank).
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14 | (9) Procurement expenditures by the Illinois | ||||||
15 | Conservation Foundation
when only private funds are used.
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16 | (10) (Blank). | ||||||
17 | (11) Public-private agreements entered into according | ||||||
18 | to the procurement requirements of Section 20 of the | ||||||
19 | Public-Private Partnerships for Transportation Act and | ||||||
20 | design-build agreements entered into according to the | ||||||
21 | procurement requirements of Section 25 of the | ||||||
22 | Public-Private Partnerships for Transportation Act. | ||||||
23 | (12) Contracts for legal, financial, and other | ||||||
24 | professional and artistic services entered into on or | ||||||
25 | before December 31, 2018 by the Illinois Finance Authority | ||||||
26 | in which the State of Illinois is not obligated. Such |
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1 | contracts shall be awarded through a competitive process | ||||||
2 | authorized by the Board of the Illinois Finance Authority | ||||||
3 | and are subject to Sections 5-30, 20-160, 50-13, 50-20, | ||||||
4 | 50-35, and 50-37 of this Code, as well as the final | ||||||
5 | approval by the Board of the Illinois Finance Authority of | ||||||
6 | the terms of the contract. | ||||||
7 | (13) Contracts for services, commodities, and | ||||||
8 | equipment to support the delivery of timely forensic | ||||||
9 | science services in consultation with and subject to the | ||||||
10 | approval of the Chief Procurement Officer as provided in | ||||||
11 | subsection (d) of Section 5-4-3a of the Unified Code of | ||||||
12 | Corrections, except for the requirements of Sections | ||||||
13 | 20-60, 20-65, 20-70, and 20-160 and Article 50 of this | ||||||
14 | Code; however, the Chief Procurement Officer may, in | ||||||
15 | writing with justification, waive any certification | ||||||
16 | required under Article 50 of this Code. For any contracts | ||||||
17 | for services which are currently provided by members of a | ||||||
18 | collective bargaining agreement, the applicable terms of | ||||||
19 | the collective bargaining agreement concerning | ||||||
20 | subcontracting shall be followed. | ||||||
21 | On and after January 1, 2019, this paragraph (13), | ||||||
22 | except for this sentence, is inoperative. | ||||||
23 | (14) Contracts for participation expenditures required | ||||||
24 | by a domestic or international trade show or exhibition of | ||||||
25 | an exhibitor, member, or sponsor. | ||||||
26 | (15) Contracts with a railroad or utility that requires |
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1 | the State to reimburse the railroad or utilities for the | ||||||
2 | relocation of utilities for construction or other public | ||||||
3 | purpose. Contracts included within this paragraph (15) | ||||||
4 | shall include, but not be limited to, those associated | ||||||
5 | with: relocations, crossings, installations, and | ||||||
6 | maintenance. For the purposes of this paragraph (15), | ||||||
7 | "railroad" means any form of non-highway ground | ||||||
8 | transportation that runs on rails or electromagnetic | ||||||
9 | guideways and "utility" means: (1) public utilities as | ||||||
10 | defined in Section 3-105 of the Public Utilities Act, (2) | ||||||
11 | telecommunications carriers as defined in Section 13-202 | ||||||
12 | of the Public Utilities Act, (3) electric cooperatives as | ||||||
13 | defined in Section 3.4 of the Electric Supplier Act, (4) | ||||||
14 | telephone or telecommunications cooperatives as defined in | ||||||
15 | Section 13-212 of the Public Utilities Act, (5) rural water | ||||||
16 | or waste water systems with 10,000 connections or less, (6) | ||||||
17 | a holder as defined in Section 21-201 of the Public | ||||||
18 | Utilities Act, and (7) municipalities owning or operating | ||||||
19 | utility systems consisting of public utilities as that term | ||||||
20 | is defined in Section 11-117-2 of the Illinois Municipal | ||||||
21 | Code. | ||||||
22 | (16) Procurement expenditures necessary for the | ||||||
23 | Department of Public Health to provide the delivery of | ||||||
24 | timely newborn screening services in accordance with the | ||||||
25 | Newborn Metabolic Screening Act. | ||||||
26 | (17) (16) Procurement expenditures necessary for the |
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1 | Department of Agriculture, the Department of Financial and | ||||||
2 | Professional Regulation, the Department of Human Services, | ||||||
3 | and the Department of Public Health to implement the | ||||||
4 | Compassionate Use of Medical Cannabis Pilot Program and | ||||||
5 | Opioid Alternative Pilot Program requirements and ensure | ||||||
6 | access to medical cannabis for patients with debilitating | ||||||
7 | medical conditions in accordance with the Compassionate | ||||||
8 | Use of Medical Cannabis Pilot Program Act. | ||||||
9 | Notwithstanding any other provision of law, for contracts | ||||||
10 | entered into on or after October 1, 2017 under an exemption | ||||||
11 | provided in any paragraph of this subsection (b), except | ||||||
12 | paragraph (1), (2), or (5), each State agency shall post to the | ||||||
13 | appropriate procurement bulletin the name of the contractor, a | ||||||
14 | description of the supply or service provided, the total amount | ||||||
15 | of the contract, the term of the contract, and the exception to | ||||||
16 | the Code utilized. The chief procurement officer shall submit a | ||||||
17 | report to the Governor and General Assembly no later than | ||||||
18 | November 1 of each year that shall include, at a minimum, an | ||||||
19 | annual summary of the monthly information reported to the chief | ||||||
20 | procurement officer. | ||||||
21 | (c) This Code does not apply to the electric power | ||||||
22 | procurement process provided for under Section 1-75 of the | ||||||
23 | Illinois Power Agency Act and Section 16-111.5 of the Public | ||||||
24 | Utilities Act. | ||||||
25 | (d) Except for Section 20-160 and Article 50 of this Code, | ||||||
26 | and as expressly required by Section 9.1 of the Illinois |
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1 | Lottery Law, the provisions of this Code do not apply to the | ||||||
2 | procurement process provided for under Section 9.1 of the | ||||||
3 | Illinois Lottery Law. | ||||||
4 | (e) This Code does not apply to the process used by the | ||||||
5 | Capital Development Board to retain a person or entity to | ||||||
6 | assist the Capital Development Board with its duties related to | ||||||
7 | the determination of costs of a clean coal SNG brownfield | ||||||
8 | facility, as defined by Section 1-10 of the Illinois Power | ||||||
9 | Agency Act, as required in subsection (h-3) of Section 9-220 of | ||||||
10 | the Public Utilities Act, including calculating the range of | ||||||
11 | capital costs, the range of operating and maintenance costs, or | ||||||
12 | the sequestration costs or monitoring the construction of clean | ||||||
13 | coal SNG brownfield facility for the full duration of | ||||||
14 | construction. | ||||||
15 | (f) (Blank). | ||||||
16 | (g) (Blank). | ||||||
17 | (g-5) This Code does not apply to the leasing of | ||||||
18 | State-owned facilities by a wireless carrier, as defined in | ||||||
19 | Section 2 of the Emergency Telephone System Act. | ||||||
20 | (h) This Code does not apply to the process to procure or | ||||||
21 | contracts entered into in accordance with Sections 11-5.2 and | ||||||
22 | 11-5.3 of the Illinois Public Aid Code. | ||||||
23 | (i) Each chief procurement officer may access records | ||||||
24 | necessary to review whether a contract, purchase, or other | ||||||
25 | expenditure is or is not subject to the provisions of this | ||||||
26 | Code, unless such records would be subject to attorney-client |
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1 | privilege. | ||||||
2 | (j) This Code does not apply to the process used by the | ||||||
3 | Capital Development Board to retain an artist or work or works | ||||||
4 | of art as required in Section 14 of the Capital Development | ||||||
5 | Board Act. | ||||||
6 | (k) This Code does not apply to the process to procure | ||||||
7 | contracts, or contracts entered into, by the State Board of | ||||||
8 | Elections or the State Electoral Board for hearing officers | ||||||
9 | appointed pursuant to the Election Code. | ||||||
10 | (l) This Code does not apply to the processes used by the | ||||||
11 | Illinois Student Assistance Commission to procure supplies and | ||||||
12 | services paid for from the private funds of the Illinois | ||||||
13 | Prepaid Tuition Fund. As used in this subsection (l), "private | ||||||
14 | funds" means funds derived from deposits paid into the Illinois | ||||||
15 | Prepaid Tuition Trust Fund and the earnings thereon. | ||||||
16 | (Source: P.A. 99-801, eff. 1-1-17; 100-43, eff. 8-9-17; | ||||||
17 | 100-580, eff. 3-12-18; 100-757, eff. 8-10-18; 100-1114, eff. | ||||||
18 | 8-28-18; revised 10-18-18.)
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19 | Section 5. The Illinois Income Tax Act is amended by | ||||||
20 | changing Section 201 as follows:
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21 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
22 | Sec. 201. Tax imposed. | ||||||
23 | (a) In general. A tax measured by net income is hereby | ||||||
24 | imposed on every
individual, corporation, trust and estate for |
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1 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
2 | of earning or receiving income in or
as a resident of this | ||||||
3 | State. Such tax shall be in addition to all other
occupation or | ||||||
4 | privilege taxes imposed by this State or by any municipal
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5 | corporation or political subdivision thereof. | ||||||
6 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
7 | Section shall be
determined as follows, except as adjusted by | ||||||
8 | subsection (d-1): | ||||||
9 | (1) In the case of an individual, trust or estate, for | ||||||
10 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
11 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
12 | year. | ||||||
13 | (2) In the case of an individual, trust or estate, for | ||||||
14 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
15 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
16 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
17 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
18 | 3% of the
taxpayer's net income for the period after June | ||||||
19 | 30, 1989, as calculated
under Section 202.3. | ||||||
20 | (3) In the case of an individual, trust or estate, for | ||||||
21 | taxable years
beginning after June 30, 1989, and ending | ||||||
22 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
23 | taxpayer's net
income for the taxable year. | ||||||
24 | (4) In the case of an individual, trust, or estate, for | ||||||
25 | taxable years beginning prior to January 1, 2011, and | ||||||
26 | ending after December 31, 2010, an amount equal to the sum |
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1 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
2 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
3 | (ii) 5% of the taxpayer's net income for the period after | ||||||
4 | December 31, 2010, as calculated under Section 202.5. | ||||||
5 | (5) In the case of an individual, trust, or estate, for | ||||||
6 | taxable years beginning on or after January 1, 2011, and | ||||||
7 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
8 | the taxpayer's net income for the taxable year. | ||||||
9 | (5.1) In the case of an individual, trust, or estate, | ||||||
10 | for taxable years beginning prior to January 1, 2015, and | ||||||
11 | ending after December 31, 2014, an amount equal to the sum | ||||||
12 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
13 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
14 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
15 | after December 31, 2014, as calculated under Section 202.5. | ||||||
16 | (5.2) In the case of an individual, trust, or estate, | ||||||
17 | for taxable years beginning on or after January 1, 2015, | ||||||
18 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
19 | of the taxpayer's net income for the taxable year. | ||||||
20 | (5.3) In the case of an individual, trust, or estate, | ||||||
21 | for taxable years beginning prior to July 1, 2017, and | ||||||
22 | ending after June 30, 2017, an amount equal to the sum of | ||||||
23 | (i) 3.75% of the taxpayer's net income for the period prior | ||||||
24 | to July 1, 2017, as calculated under Section 202.5, and | ||||||
25 | (ii) 4.95% of the taxpayer's net income for the period | ||||||
26 | after June 30, 2017, as calculated under Section 202.5. |
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1 | (5.4) In the case of an individual, trust, or estate, | ||||||
2 | for taxable years beginning on or after July 1, 2017, an | ||||||
3 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
4 | taxable year. | ||||||
5 | (6) In the case of a corporation, for taxable years
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6 | ending prior to July 1, 1989, an amount equal to 4% of the
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7 | taxpayer's net income for the taxable year. | ||||||
8 | (7) In the case of a corporation, for taxable years | ||||||
9 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
10 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
11 | taxpayer's net income for the period prior to July 1, 1989,
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12 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
13 | taxpayer's net
income for the period after June 30, 1989, | ||||||
14 | as calculated under Section
202.3. | ||||||
15 | (8) In the case of a corporation, for taxable years | ||||||
16 | beginning after
June 30, 1989, and ending prior to January | ||||||
17 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
18 | income for the
taxable year. | ||||||
19 | (9) In the case of a corporation, for taxable years | ||||||
20 | beginning prior to January 1, 2011, and ending after | ||||||
21 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
22 | of the taxpayer's net income for the period prior to | ||||||
23 | January 1, 2011, as calculated under Section 202.5, and | ||||||
24 | (ii) 7% of the taxpayer's net income for the period after | ||||||
25 | December 31, 2010, as calculated under Section 202.5. | ||||||
26 | (10) In the case of a corporation, for taxable years |
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1 | beginning on or after January 1, 2011, and ending prior to | ||||||
2 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
3 | net income for the taxable year. | ||||||
4 | (11) In the case of a corporation, for taxable years | ||||||
5 | beginning prior to January 1, 2015, and ending after | ||||||
6 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
7 | the taxpayer's net income for the period prior to January | ||||||
8 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
9 | of the taxpayer's net income for the period after December | ||||||
10 | 31, 2014, as calculated under Section 202.5. | ||||||
11 | (12) In the case of a corporation, for taxable years | ||||||
12 | beginning on or after January 1, 2015, and ending prior to | ||||||
13 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
14 | net income for the taxable year. | ||||||
15 | (13) In the case of a corporation, for taxable years | ||||||
16 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
17 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
18 | taxpayer's net income for the period prior to July 1, 2017, | ||||||
19 | as calculated under Section 202.5, and (ii) 7% of the | ||||||
20 | taxpayer's net income for the period after June 30, 2017, | ||||||
21 | as calculated under Section 202.5. | ||||||
22 | (14) In the case of a corporation, for taxable years | ||||||
23 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
24 | of the taxpayer's net income for the taxable year. | ||||||
25 | The rates under this subsection (b) are subject to the | ||||||
26 | provisions of Section 201.5. |
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1 | (c) Personal Property Tax Replacement Income Tax.
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2 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
3 | income
tax, there is also hereby imposed the Personal Property | ||||||
4 | Tax Replacement
Income Tax measured by net income on every | ||||||
5 | corporation (including Subchapter
S corporations), partnership | ||||||
6 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
7 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
8 | income in or as a resident of this State. The Personal Property
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9 | Tax Replacement Income Tax shall be in addition to the income | ||||||
10 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
11 | addition to all other
occupation or privilege taxes imposed by | ||||||
12 | this State or by any municipal
corporation or political | ||||||
13 | subdivision thereof. | ||||||
14 | (d) Additional Personal Property Tax Replacement Income | ||||||
15 | Tax Rates.
The personal property tax replacement income tax | ||||||
16 | imposed by this subsection
and subsection (c) of this Section | ||||||
17 | in the case of a corporation, other
than a Subchapter S | ||||||
18 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
19 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
20 | income for the taxable year, except that
beginning on January | ||||||
21 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
22 | subsection shall be reduced to 2.5%, and in the case of a
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23 | partnership, trust or a Subchapter S corporation shall be an | ||||||
24 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
25 | for the taxable year. | ||||||
26 | (d-1) Rate reduction for certain foreign insurers. In the |
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1 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
2 | Illinois Insurance Code,
whose state or country of domicile | ||||||
3 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
4 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
5 | are 50% or more of its total insurance
premiums as determined | ||||||
6 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
7 | that for purposes of this determination premiums from | ||||||
8 | reinsurance do
not include premiums from inter-affiliate | ||||||
9 | reinsurance arrangements),
beginning with taxable years ending | ||||||
10 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
11 | imposed by subsections (b) and (d) shall be reduced (but not
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12 | increased) to the rate at which the total amount of tax imposed | ||||||
13 | under this Act,
net of all credits allowed under this Act, | ||||||
14 | shall equal (i) the total amount of
tax that would be imposed | ||||||
15 | on the foreign insurer's net income allocable to
Illinois for | ||||||
16 | the taxable year by such foreign insurer's state or country of
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17 | domicile if that net income were subject to all income taxes | ||||||
18 | and taxes
measured by net income imposed by such foreign | ||||||
19 | insurer's state or country of
domicile, net of all credits | ||||||
20 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
21 | income by the foreign insurer's state of domicile.
For the | ||||||
22 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
23 | a
mutual insurer under common management. | ||||||
24 | (1) For the purposes of subsection (d-1), in no event | ||||||
25 | shall the sum of the
rates of tax imposed by subsections | ||||||
26 | (b) and (d) be reduced below the rate at
which the sum of: |
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1 | (A) the total amount of tax imposed on such foreign | ||||||
2 | insurer under
this Act for a taxable year, net of all | ||||||
3 | credits allowed under this Act, plus | ||||||
4 | (B) the privilege tax imposed by Section 409 of the | ||||||
5 | Illinois Insurance
Code, the fire insurance company | ||||||
6 | tax imposed by Section 12 of the Fire
Investigation | ||||||
7 | Act, and the fire department taxes imposed under | ||||||
8 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
9 | equals 1.25% for taxable years ending prior to December 31, | ||||||
10 | 2003, or
1.75% for taxable years ending on or after | ||||||
11 | December 31, 2003, of the net
taxable premiums written for | ||||||
12 | the taxable year,
as described by subsection (1) of Section | ||||||
13 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
14 | no event increase the rates imposed under subsections
(b) | ||||||
15 | and (d). | ||||||
16 | (2) Any reduction in the rates of tax imposed by this | ||||||
17 | subsection shall be
applied first against the rates imposed | ||||||
18 | by subsection (b) and only after the
tax imposed by | ||||||
19 | subsection (a) net of all credits allowed under this | ||||||
20 | Section
other than the credit allowed under subsection (i) | ||||||
21 | has been reduced to zero,
against the rates imposed by | ||||||
22 | subsection (d). | ||||||
23 | This subsection (d-1) is exempt from the provisions of | ||||||
24 | Section 250. | ||||||
25 | (e) Investment credit. A taxpayer shall be allowed a credit
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26 | against the Personal Property Tax Replacement Income Tax for
|
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1 | investment in qualified property. | ||||||
2 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
3 | of
the basis of qualified property placed in service during | ||||||
4 | the taxable year,
provided such property is placed in | ||||||
5 | service on or after
July 1, 1984. There shall be allowed an | ||||||
6 | additional credit equal
to .5% of the basis of qualified | ||||||
7 | property placed in service during the
taxable year, | ||||||
8 | provided such property is placed in service on or
after | ||||||
9 | July 1, 1986, and the taxpayer's base employment
within | ||||||
10 | Illinois has increased by 1% or more over the preceding | ||||||
11 | year as
determined by the taxpayer's employment records | ||||||
12 | filed with the
Illinois Department of Employment Security. | ||||||
13 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
14 | met the 1% growth in base employment for
the first year in | ||||||
15 | which they file employment records with the Illinois
| ||||||
16 | Department of Employment Security. The provisions added to | ||||||
17 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
18 | Act 87-895) shall be
construed as declaratory of existing | ||||||
19 | law and not as a new enactment. If,
in any year, the | ||||||
20 | increase in base employment within Illinois over the
| ||||||
21 | preceding year is less than 1%, the additional credit shall | ||||||
22 | be limited to that
percentage times a fraction, the | ||||||
23 | numerator of which is .5% and the denominator
of which is | ||||||
24 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
25 | not be
allowed to the extent that it would reduce a | ||||||
26 | taxpayer's liability in any tax
year below zero, nor may |
| |||||||
| |||||||
1 | any credit for qualified property be allowed for any
year | ||||||
2 | other than the year in which the property was placed in | ||||||
3 | service in
Illinois. For tax years ending on or after | ||||||
4 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
5 | credit shall be allowed for the tax year in
which the | ||||||
6 | property is placed in service, or, if the amount of the | ||||||
7 | credit
exceeds the tax liability for that year, whether it | ||||||
8 | exceeds the original
liability or the liability as later | ||||||
9 | amended, such excess may be carried
forward and applied to | ||||||
10 | the tax liability of the 5 taxable years following
the | ||||||
11 | excess credit years if the taxpayer (i) makes investments | ||||||
12 | which cause
the creation of a minimum of 2,000 full-time | ||||||
13 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
14 | enterprise zone established pursuant to the Illinois
| ||||||
15 | Enterprise Zone Act and (iii) is certified by the | ||||||
16 | Department of Commerce
and Community Affairs (now | ||||||
17 | Department of Commerce and Economic Opportunity) as | ||||||
18 | complying with the requirements specified in
clause (i) and | ||||||
19 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
20 | Community Affairs (now Department of Commerce and Economic | ||||||
21 | Opportunity) shall notify the Department of Revenue of all | ||||||
22 | such
certifications immediately. For tax years ending | ||||||
23 | after December 31, 1988,
the credit shall be allowed for | ||||||
24 | the tax year in which the property is
placed in service, | ||||||
25 | or, if the amount of the credit exceeds the tax
liability | ||||||
26 | for that year, whether it exceeds the original liability or |
| |||||||
| |||||||
1 | the
liability as later amended, such excess may be carried | ||||||
2 | forward and applied
to the tax liability of the 5 taxable | ||||||
3 | years following the excess credit
years. The credit shall | ||||||
4 | be applied to the earliest year for which there is
a | ||||||
5 | liability. If there is credit from more than one tax year | ||||||
6 | that is
available to offset a liability, earlier credit | ||||||
7 | shall be applied first. | ||||||
8 | (2) The term "qualified property" means property | ||||||
9 | which: | ||||||
10 | (A) is tangible, whether new or used, including | ||||||
11 | buildings and structural
components of buildings and | ||||||
12 | signs that are real property, but not including
land or | ||||||
13 | improvements to real property that are not a structural | ||||||
14 | component of a
building such as landscaping, sewer | ||||||
15 | lines, local access roads, fencing, parking
lots, and | ||||||
16 | other appurtenances; | ||||||
17 | (B) is depreciable pursuant to Section 167 of the | ||||||
18 | Internal Revenue Code,
except that "3-year property" | ||||||
19 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
20 | eligible for the credit provided by this subsection | ||||||
21 | (e); | ||||||
22 | (C) is acquired by purchase as defined in Section | ||||||
23 | 179(d) of
the Internal Revenue Code; | ||||||
24 | (D) is used in Illinois by a taxpayer who is | ||||||
25 | primarily engaged in
manufacturing, or in mining coal | ||||||
26 | or fluorite, or in retailing, or was placed in service |
| |||||||
| |||||||
1 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
2 | Zone established pursuant to the River Edge | ||||||
3 | Redevelopment Zone Act; and | ||||||
4 | (E) has not previously been used in Illinois in | ||||||
5 | such a manner and by
such a person as would qualify for | ||||||
6 | the credit provided by this subsection
(e) or | ||||||
7 | subsection (f). | ||||||
8 | (3) For purposes of this subsection (e), | ||||||
9 | "manufacturing" means
the material staging and production | ||||||
10 | of tangible personal property by
procedures commonly | ||||||
11 | regarded as manufacturing, processing, fabrication, or
| ||||||
12 | assembling which changes some existing material into new | ||||||
13 | shapes, new
qualities, or new combinations. For purposes of | ||||||
14 | this subsection
(e) the term "mining" shall have the same | ||||||
15 | meaning as the term "mining" in
Section 613(c) of the | ||||||
16 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
17 | the term "retailing" means the sale of tangible personal | ||||||
18 | property for use or consumption and not for resale, or
| ||||||
19 | services rendered in conjunction with the sale of tangible | ||||||
20 | personal property for use or consumption and not for | ||||||
21 | resale. For purposes of this subsection (e), "tangible | ||||||
22 | personal property" has the same meaning as when that term | ||||||
23 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
24 | taxable years ending after December 31, 2008, does not | ||||||
25 | include the generation, transmission, or distribution of | ||||||
26 | electricity. |
| |||||||
| |||||||
1 | (4) The basis of qualified property shall be the basis
| ||||||
2 | used to compute the depreciation deduction for federal | ||||||
3 | income tax purposes. | ||||||
4 | (5) If the basis of the property for federal income tax | ||||||
5 | depreciation
purposes is increased after it has been placed | ||||||
6 | in service in Illinois by
the taxpayer, the amount of such | ||||||
7 | increase shall be deemed property placed
in service on the | ||||||
8 | date of such increase in basis. | ||||||
9 | (6) The term "placed in service" shall have the same
| ||||||
10 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
11 | (7) If during any taxable year, any property ceases to
| ||||||
12 | be qualified property in the hands of the taxpayer within | ||||||
13 | 48 months after
being placed in service, or the situs of | ||||||
14 | any qualified property is
moved outside Illinois within 48 | ||||||
15 | months after being placed in service, the
Personal Property | ||||||
16 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
17 | increased. Such increase shall be determined by (i) | ||||||
18 | recomputing the
investment credit which would have been | ||||||
19 | allowed for the year in which
credit for such property was | ||||||
20 | originally allowed by eliminating such
property from such | ||||||
21 | computation and, (ii) subtracting such recomputed credit
| ||||||
22 | from the amount of credit previously allowed. For the | ||||||
23 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
24 | qualified property resulting
from a redetermination of the | ||||||
25 | purchase price shall be deemed a disposition
of qualified | ||||||
26 | property to the extent of such reduction. |
| |||||||
| |||||||
1 | (8) Unless the investment credit is extended by law, | ||||||
2 | the
basis of qualified property shall not include costs | ||||||
3 | incurred after
December 31, 2018, except for costs incurred | ||||||
4 | pursuant to a binding
contract entered into on or before | ||||||
5 | December 31, 2018. | ||||||
6 | (9) Each taxable year ending before December 31, 2000, | ||||||
7 | a partnership may
elect to pass through to its
partners the | ||||||
8 | credits to which the partnership is entitled under this | ||||||
9 | subsection
(e) for the taxable year. A partner may use the | ||||||
10 | credit allocated to him or her
under this paragraph only | ||||||
11 | against the tax imposed in subsections (c) and (d) of
this | ||||||
12 | Section. If the partnership makes that election, those | ||||||
13 | credits shall be
allocated among the partners in the | ||||||
14 | partnership in accordance with the rules
set forth in | ||||||
15 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
16 | promulgated under that Section, and the allocated amount of | ||||||
17 | the credits shall
be allowed to the partners for that | ||||||
18 | taxable year. The partnership shall make
this election on | ||||||
19 | its Personal Property Tax Replacement Income Tax return for
| ||||||
20 | that taxable year. The election to pass through the credits | ||||||
21 | shall be
irrevocable. | ||||||
22 | For taxable years ending on or after December 31, 2000, | ||||||
23 | a
partner that qualifies its
partnership for a subtraction | ||||||
24 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
25 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
26 | S
corporation for a subtraction under subparagraph (S) of |
| |||||||
| |||||||
1 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
2 | allowed a credit under this subsection
(e) equal to its | ||||||
3 | share of the credit earned under this subsection (e) during
| ||||||
4 | the taxable year by the partnership or Subchapter S | ||||||
5 | corporation, determined in
accordance with the | ||||||
6 | determination of income and distributive share of
income | ||||||
7 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
8 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
9 | of Section 250. | ||||||
10 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
11 | Redevelopment Zone. | ||||||
12 | (1) A taxpayer shall be allowed a credit against the | ||||||
13 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
14 | investment in qualified
property which is placed in service | ||||||
15 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
16 | Enterprise Zone Act or, for property placed in service on | ||||||
17 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
18 | established pursuant to the River Edge Redevelopment Zone | ||||||
19 | Act. For partners, shareholders
of Subchapter S | ||||||
20 | corporations, and owners of limited liability companies,
| ||||||
21 | if the liability company is treated as a partnership for | ||||||
22 | purposes of
federal and State income taxation, there shall | ||||||
23 | be allowed a credit under
this subsection (f) to be | ||||||
24 | determined in accordance with the determination
of income | ||||||
25 | and distributive share of income under Sections 702 and 704 | ||||||
26 | and
Subchapter S of the Internal Revenue Code. The credit |
| |||||||
| |||||||
1 | shall be .5% of the
basis for such property. The credit | ||||||
2 | shall be available only in the taxable
year in which the | ||||||
3 | property is placed in service in the Enterprise Zone or | ||||||
4 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
5 | the extent that it would reduce a taxpayer's
liability for | ||||||
6 | the tax imposed by subsections (a) and (b) of this Section | ||||||
7 | to
below zero. For tax years ending on or after December | ||||||
8 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
9 | which the property is placed in
service, or, if the amount | ||||||
10 | of the credit exceeds the tax liability for that
year, | ||||||
11 | whether it exceeds the original liability or the liability | ||||||
12 | as later
amended, such excess may be carried forward and | ||||||
13 | applied to the tax
liability of the 5 taxable years | ||||||
14 | following the excess credit year.
The credit shall be | ||||||
15 | applied to the earliest year for which there is a
| ||||||
16 | liability. If there is credit from more than one tax year | ||||||
17 | that is available
to offset a liability, the credit | ||||||
18 | accruing first in time shall be applied
first. | ||||||
19 | (2) The term qualified property means property which: | ||||||
20 | (A) is tangible, whether new or used, including | ||||||
21 | buildings and
structural components of buildings; | ||||||
22 | (B) is depreciable pursuant to Section 167 of the | ||||||
23 | Internal Revenue
Code, except that "3-year property" | ||||||
24 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
25 | eligible for the credit provided by this subsection | ||||||
26 | (f); |
| |||||||
| |||||||
1 | (C) is acquired by purchase as defined in Section | ||||||
2 | 179(d) of
the Internal Revenue Code; | ||||||
3 | (D) is used in the Enterprise Zone or River Edge | ||||||
4 | Redevelopment Zone by the taxpayer; and | ||||||
5 | (E) has not been previously used in Illinois in | ||||||
6 | such a manner and by
such a person as would qualify for | ||||||
7 | the credit provided by this subsection
(f) or | ||||||
8 | subsection (e). | ||||||
9 | (3) The basis of qualified property shall be the basis | ||||||
10 | used to compute
the depreciation deduction for federal | ||||||
11 | income tax purposes. | ||||||
12 | (4) If the basis of the property for federal income tax | ||||||
13 | depreciation
purposes is increased after it has been placed | ||||||
14 | in service in the Enterprise
Zone or River Edge | ||||||
15 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
16 | increase shall be deemed property
placed in service on the | ||||||
17 | date of such increase in basis. | ||||||
18 | (5) The term "placed in service" shall have the same | ||||||
19 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
20 | (6) If during any taxable year, any property ceases to | ||||||
21 | be qualified
property in the hands of the taxpayer within | ||||||
22 | 48 months after being placed
in service, or the situs of | ||||||
23 | any qualified property is moved outside the
Enterprise Zone | ||||||
24 | or River Edge Redevelopment Zone within 48 months after | ||||||
25 | being placed in service, the tax
imposed under subsections | ||||||
26 | (a) and (b) of this Section for such taxable year
shall be |
| |||||||
| |||||||
1 | increased. Such increase shall be determined by (i) | ||||||
2 | recomputing
the investment credit which would have been | ||||||
3 | allowed for the year in which
credit for such property was | ||||||
4 | originally allowed by eliminating such
property from such | ||||||
5 | computation, and (ii) subtracting such recomputed credit
| ||||||
6 | from the amount of credit previously allowed. For the | ||||||
7 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
8 | qualified property resulting
from a redetermination of the | ||||||
9 | purchase price shall be deemed a disposition
of qualified | ||||||
10 | property to the extent of such reduction. | ||||||
11 | (7) There shall be allowed an additional credit equal | ||||||
12 | to 0.5% of the basis of qualified property placed in | ||||||
13 | service during the taxable year in a River Edge | ||||||
14 | Redevelopment Zone, provided such property is placed in | ||||||
15 | service on or after July 1, 2006, and the taxpayer's base | ||||||
16 | employment within Illinois has increased by 1% or more over | ||||||
17 | the preceding year as determined by the taxpayer's | ||||||
18 | employment records filed with the Illinois Department of | ||||||
19 | Employment Security. Taxpayers who are new to Illinois | ||||||
20 | shall be deemed to have met the 1% growth in base | ||||||
21 | employment for the first year in which they file employment | ||||||
22 | records with the Illinois Department of Employment | ||||||
23 | Security. If, in any year, the increase in base employment | ||||||
24 | within Illinois over the preceding year is less than 1%, | ||||||
25 | the additional credit shall be limited to that percentage | ||||||
26 | times a fraction, the numerator of which is 0.5% and the |
| |||||||
| |||||||
1 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
2 | (g) (Blank). | ||||||
3 | (h) Investment credit; High Impact Business. | ||||||
4 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
5 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
6 | allowed a credit
against the tax imposed by subsections (a) | ||||||
7 | and (b) of this Section for
investment in qualified
| ||||||
8 | property which is placed in service by a Department of | ||||||
9 | Commerce and Economic Opportunity
designated High Impact | ||||||
10 | Business. The credit shall be .5% of the basis
for such | ||||||
11 | property. The credit shall not be available (i) until the | ||||||
12 | minimum
investments in qualified property set forth in | ||||||
13 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
14 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
15 | time authorized in subsection (b-5) of the Illinois
| ||||||
16 | Enterprise Zone Act for entities designated as High Impact | ||||||
17 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
18 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
19 | Act, and shall not be allowed to the extent that it would
| ||||||
20 | reduce a taxpayer's liability for the tax imposed by | ||||||
21 | subsections (a) and (b) of
this Section to below zero. The | ||||||
22 | credit applicable to such investments shall be
taken in the | ||||||
23 | taxable year in which such investments have been completed. | ||||||
24 | The
credit for additional investments beyond the minimum | ||||||
25 | investment by a designated
high impact business authorized | ||||||
26 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois |
| |||||||
| |||||||
1 | Enterprise Zone Act shall be available only in the taxable | ||||||
2 | year in
which the property is placed in service and shall | ||||||
3 | not be allowed to the extent
that it would reduce a | ||||||
4 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
5 | and (b) of this Section to below zero.
For tax years ending | ||||||
6 | on or after December 31, 1987, the credit shall be
allowed | ||||||
7 | for the tax year in which the property is placed in | ||||||
8 | service, or, if
the amount of the credit exceeds the tax | ||||||
9 | liability for that year, whether
it exceeds the original | ||||||
10 | liability or the liability as later amended, such
excess | ||||||
11 | may be carried forward and applied to the tax liability of | ||||||
12 | the 5
taxable years following the excess credit year. The | ||||||
13 | credit shall be
applied to the earliest year for which | ||||||
14 | there is a liability. If there is
credit from more than one | ||||||
15 | tax year that is available to offset a liability,
the | ||||||
16 | credit accruing first in time shall be applied first. | ||||||
17 | Changes made in this subdivision (h)(1) by Public Act | ||||||
18 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
19 | reflect existing law. | ||||||
20 | (2) The term qualified property means property which: | ||||||
21 | (A) is tangible, whether new or used, including | ||||||
22 | buildings and
structural components of buildings; | ||||||
23 | (B) is depreciable pursuant to Section 167 of the | ||||||
24 | Internal Revenue
Code, except that "3-year property" | ||||||
25 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
26 | eligible for the credit provided by this subsection |
| |||||||
| |||||||
1 | (h); | ||||||
2 | (C) is acquired by purchase as defined in Section | ||||||
3 | 179(d) of the
Internal Revenue Code; and | ||||||
4 | (D) is not eligible for the Enterprise Zone | ||||||
5 | Investment Credit provided
by subsection (f) of this | ||||||
6 | Section. | ||||||
7 | (3) The basis of qualified property shall be the basis | ||||||
8 | used to compute
the depreciation deduction for federal | ||||||
9 | income tax purposes. | ||||||
10 | (4) If the basis of the property for federal income tax | ||||||
11 | depreciation
purposes is increased after it has been placed | ||||||
12 | in service in a federally
designated Foreign Trade Zone or | ||||||
13 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
14 | such increase shall be deemed property placed in service on
| ||||||
15 | the date of such increase in basis. | ||||||
16 | (5) The term "placed in service" shall have the same | ||||||
17 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
18 | (6) If during any taxable year ending on or before | ||||||
19 | December 31, 1996,
any property ceases to be qualified
| ||||||
20 | property in the hands of the taxpayer within 48 months | ||||||
21 | after being placed
in service, or the situs of any | ||||||
22 | qualified property is moved outside
Illinois within 48 | ||||||
23 | months after being placed in service, the tax imposed
under | ||||||
24 | subsections (a) and (b) of this Section for such taxable | ||||||
25 | year shall
be increased. Such increase shall be determined | ||||||
26 | by (i) recomputing the
investment credit which would have |
| |||||||
| |||||||
1 | been allowed for the year in which
credit for such property | ||||||
2 | was originally allowed by eliminating such
property from | ||||||
3 | such computation, and (ii) subtracting such recomputed | ||||||
4 | credit
from the amount of credit previously allowed. For | ||||||
5 | the purposes of this
paragraph (6), a reduction of the | ||||||
6 | basis of qualified property resulting
from a | ||||||
7 | redetermination of the purchase price shall be deemed a | ||||||
8 | disposition
of qualified property to the extent of such | ||||||
9 | reduction. | ||||||
10 | (7) Beginning with tax years ending after December 31, | ||||||
11 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
12 | subsection (h) and thereby is
granted a tax abatement and | ||||||
13 | the taxpayer relocates its entire facility in
violation of | ||||||
14 | the explicit terms and length of the contract under Section
| ||||||
15 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
16 | subsections
(a) and (b) of this Section shall be increased | ||||||
17 | for the taxable year
in which the taxpayer relocated its | ||||||
18 | facility by an amount equal to the
amount of credit | ||||||
19 | received by the taxpayer under this subsection (h). | ||||||
20 | (i) Credit for Personal Property Tax Replacement Income | ||||||
21 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
22 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
23 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
24 | (d) of this Section. This credit shall be computed by | ||||||
25 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
26 | Section by a fraction, the numerator
of which is base income |
| |||||||
| |||||||
1 | allocable to Illinois and the denominator of which is
Illinois | ||||||
2 | base income, and further multiplying the product by the tax | ||||||
3 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
4 | Any credit earned on or after December 31, 1986 under
this | ||||||
5 | subsection which is unused in the year
the credit is computed | ||||||
6 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
7 | and (b) for that year (whether it exceeds the original
| ||||||
8 | liability or the liability as later amended) may be carried | ||||||
9 | forward and
applied to the tax liability imposed by subsections | ||||||
10 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
11 | year, provided that no credit may
be carried forward to any | ||||||
12 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
13 | applied first to the earliest year for which there is a | ||||||
14 | liability. If
there is a credit under this subsection from more | ||||||
15 | than one tax year that is
available to offset a liability the | ||||||
16 | earliest credit arising under this
subsection shall be applied | ||||||
17 | first. | ||||||
18 | If, during any taxable year ending on or after December 31, | ||||||
19 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
20 | Section for which a taxpayer
has claimed a credit under this | ||||||
21 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
22 | shall also be reduced. Such reduction shall be
determined by | ||||||
23 | recomputing the credit to take into account the reduced tax
| ||||||
24 | imposed by subsections (c) and (d). If any portion of the
| ||||||
25 | reduced amount of credit has been carried to a different | ||||||
26 | taxable year, an
amended return shall be filed for such taxable |
| |||||||
| |||||||
1 | year to reduce the amount of
credit claimed. | ||||||
2 | (j) Training expense credit. Beginning with tax years | ||||||
3 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
4 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
5 | imposed by subsections (a) and (b) under this Section
for all | ||||||
6 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
7 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
8 | of Illinois by a taxpayer, for educational or vocational | ||||||
9 | training in
semi-technical or technical fields or semi-skilled | ||||||
10 | or skilled fields, which
were deducted from gross income in the | ||||||
11 | computation of taxable income. The
credit against the tax | ||||||
12 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
13 | training expenses. For partners, shareholders of subchapter S
| ||||||
14 | corporations, and owners of limited liability companies, if the | ||||||
15 | liability
company is treated as a partnership for purposes of | ||||||
16 | federal and State income
taxation, there shall be allowed a | ||||||
17 | credit under this subsection (j) to be
determined in accordance | ||||||
18 | with the determination of income and distributive
share of | ||||||
19 | income under Sections 702 and 704 and subchapter S of the | ||||||
20 | Internal
Revenue Code. | ||||||
21 | Any credit allowed under this subsection which is unused in | ||||||
22 | the year
the credit is earned may be carried forward to each of | ||||||
23 | the 5 taxable
years following the year for which the credit is | ||||||
24 | first computed until it is
used. This credit shall be applied | ||||||
25 | first to the earliest year for which
there is a liability. If | ||||||
26 | there is a credit under this subsection from more
than one tax |
| |||||||
| |||||||
1 | year that is available to offset a liability the earliest
| ||||||
2 | credit arising under this subsection shall be applied first. No | ||||||
3 | carryforward
credit may be claimed in any tax year ending on or | ||||||
4 | after
December 31, 2003. | ||||||
5 | (k) Research and development credit. For tax years ending | ||||||
6 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
7 | beginning again for tax years ending on or after December 31, | ||||||
8 | 2004, and ending prior to January 1, 2022, a taxpayer shall be
| ||||||
9 | allowed a credit against the tax imposed by subsections (a) and | ||||||
10 | (b) of this
Section for increasing research activities in this | ||||||
11 | State. The credit
allowed against the tax imposed by | ||||||
12 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
13 | qualifying expenditures for increasing research activities
in | ||||||
14 | this State. For partners, shareholders of subchapter S | ||||||
15 | corporations, and
owners of limited liability companies, if the | ||||||
16 | liability company is treated as a
partnership for purposes of | ||||||
17 | federal and State income taxation, there shall be
allowed a | ||||||
18 | credit under this subsection to be determined in accordance | ||||||
19 | with the
determination of income and distributive share of | ||||||
20 | income under Sections 702 and
704 and subchapter S of the | ||||||
21 | Internal Revenue Code. | ||||||
22 | For purposes of this subsection, "qualifying expenditures" | ||||||
23 | means the
qualifying expenditures as defined for the federal | ||||||
24 | credit for increasing
research activities which would be | ||||||
25 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
26 | which are conducted in this State, "qualifying
expenditures for |
| |||||||
| |||||||
1 | increasing research activities in this State" means the
excess | ||||||
2 | of qualifying expenditures for the taxable year in which | ||||||
3 | incurred
over qualifying expenditures for the base period, | ||||||
4 | "qualifying expenditures
for the base period" means the average | ||||||
5 | of the qualifying expenditures for
each year in the base | ||||||
6 | period, and "base period" means the 3 taxable years
immediately | ||||||
7 | preceding the taxable year for which the determination is
being | ||||||
8 | made. | ||||||
9 | Any credit in excess of the tax liability for the taxable | ||||||
10 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
11 | unused credit shown on its final completed return carried over | ||||||
12 | as a credit
against the tax liability for the following 5 | ||||||
13 | taxable years or until it has
been fully used, whichever occurs | ||||||
14 | first; provided that no credit earned in a tax year ending | ||||||
15 | prior to December 31, 2003 may be carried forward to any year | ||||||
16 | ending on or after December 31, 2003. | ||||||
17 | If an unused credit is carried forward to a given year from | ||||||
18 | 2 or more
earlier years, that credit arising in the earliest | ||||||
19 | year will be applied
first against the tax liability for the | ||||||
20 | given year. If a tax liability for
the given year still | ||||||
21 | remains, the credit from the next earliest year will
then be | ||||||
22 | applied, and so on, until all credits have been used or no tax
| ||||||
23 | liability for the given year remains. Any remaining unused | ||||||
24 | credit or
credits then will be carried forward to the next | ||||||
25 | following year in which a
tax liability is incurred, except | ||||||
26 | that no credit can be carried forward to
a year which is more |
| |||||||
| |||||||
1 | than 5 years after the year in which the expense for
which the | ||||||
2 | credit is given was incurred. | ||||||
3 | No inference shall be drawn from this amendatory Act of the | ||||||
4 | 91st General
Assembly in construing this Section for taxable | ||||||
5 | years beginning before January
1, 1999. | ||||||
6 | It is the intent of the General Assembly that the research | ||||||
7 | and development credit under this subsection (k) shall apply | ||||||
8 | continuously for all tax years ending on or after December 31, | ||||||
9 | 2004 and ending prior to January 1, 2022, including, but not | ||||||
10 | limited to, the period beginning on January 1, 2016 and ending | ||||||
11 | on the effective date of this amendatory Act of the 100th | ||||||
12 | General Assembly. All actions taken in reliance on the | ||||||
13 | continuation of the credit under this subsection (k) by any | ||||||
14 | taxpayer are hereby validated. | ||||||
15 | (l) Environmental Remediation Tax Credit. | ||||||
16 | (i) For tax years ending after December 31, 1997 and on | ||||||
17 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
18 | credit against the tax
imposed by subsections (a) and (b) | ||||||
19 | of this Section for certain amounts paid
for unreimbursed | ||||||
20 | eligible remediation costs, as specified in this | ||||||
21 | subsection.
For purposes of this Section, "unreimbursed | ||||||
22 | eligible remediation costs" means
costs approved by the | ||||||
23 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
24 | Section 58.14 of the Environmental Protection Act that were | ||||||
25 | paid in performing
environmental remediation at a site for | ||||||
26 | which a No Further Remediation Letter
was issued by the |
| |||||||
| |||||||
1 | Agency and recorded under Section 58.10 of the | ||||||
2 | Environmental
Protection Act. The credit must be claimed | ||||||
3 | for the taxable year in which
Agency approval of the | ||||||
4 | eligible remediation costs is granted. The credit is
not | ||||||
5 | available to any taxpayer if the taxpayer or any related | ||||||
6 | party caused or
contributed to, in any material respect, a | ||||||
7 | release of regulated substances on,
in, or under the site | ||||||
8 | that was identified and addressed by the remedial
action | ||||||
9 | pursuant to the Site Remediation Program of the | ||||||
10 | Environmental Protection
Act. After the Pollution Control | ||||||
11 | Board rules are adopted pursuant to the
Illinois | ||||||
12 | Administrative Procedure Act for the administration and | ||||||
13 | enforcement of
Section 58.9 of the Environmental | ||||||
14 | Protection Act, determinations as to credit
availability | ||||||
15 | for purposes of this Section shall be made consistent with | ||||||
16 | those
rules. For purposes of this Section, "taxpayer" | ||||||
17 | includes a person whose tax
attributes the taxpayer has | ||||||
18 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
19 | and "related party" includes the persons disallowed a | ||||||
20 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
21 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
22 | a related taxpayer, as well as any of its
partners. The | ||||||
23 | credit allowed against the tax imposed by subsections (a) | ||||||
24 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
25 | remediation costs in
excess of $100,000 per site, except | ||||||
26 | that the $100,000 threshold shall not apply
to any site |
| |||||||
| |||||||
1 | contained in an enterprise zone as determined by the | ||||||
2 | Department of
Commerce and Community Affairs (now | ||||||
3 | Department of Commerce and Economic Opportunity). The | ||||||
4 | total credit allowed shall not exceed
$40,000 per year with | ||||||
5 | a maximum total of $150,000 per site. For partners and
| ||||||
6 | shareholders of subchapter S corporations, there shall be | ||||||
7 | allowed a credit
under this subsection to be determined in | ||||||
8 | accordance with the determination of
income and | ||||||
9 | distributive share of income under Sections 702 and 704 and
| ||||||
10 | subchapter S of the Internal Revenue Code. | ||||||
11 | (ii) A credit allowed under this subsection that is | ||||||
12 | unused in the year
the credit is earned may be carried | ||||||
13 | forward to each of the 5 taxable years
following the year | ||||||
14 | for which the credit is first earned until it is used.
The | ||||||
15 | term "unused credit" does not include any amounts of | ||||||
16 | unreimbursed eligible
remediation costs in excess of the | ||||||
17 | maximum credit per site authorized under
paragraph (i). | ||||||
18 | This credit shall be applied first to the earliest year
for | ||||||
19 | which there is a liability. If there is a credit under this | ||||||
20 | subsection
from more than one tax year that is available to | ||||||
21 | offset a liability, the
earliest credit arising under this | ||||||
22 | subsection shall be applied first. A
credit allowed under | ||||||
23 | this subsection may be sold to a buyer as part of a sale
of | ||||||
24 | all or part of the remediation site for which the credit | ||||||
25 | was granted. The
purchaser of a remediation site and the | ||||||
26 | tax credit shall succeed to the unused
credit and remaining |
| |||||||
| |||||||
1 | carry-forward period of the seller. To perfect the
| ||||||
2 | transfer, the assignor shall record the transfer in the | ||||||
3 | chain of title for the
site and provide written notice to | ||||||
4 | the Director of the Illinois Department of
Revenue of the | ||||||
5 | assignor's intent to sell the remediation site and the | ||||||
6 | amount of
the tax credit to be transferred as a portion of | ||||||
7 | the sale. In no event may a
credit be transferred to any | ||||||
8 | taxpayer if the taxpayer or a related party would
not be | ||||||
9 | eligible under the provisions of subsection (i). | ||||||
10 | (iii) For purposes of this Section, the term "site" | ||||||
11 | shall have the same
meaning as under Section 58.2 of the | ||||||
12 | Environmental Protection Act. | ||||||
13 | (m) Education expense credit. Beginning with tax years | ||||||
14 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
15 | of one or more qualifying pupils shall be allowed a credit
| ||||||
16 | against the tax imposed by subsections (a) and (b) of this | ||||||
17 | Section for
qualified education expenses incurred on behalf of | ||||||
18 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
19 | qualified education expenses, but in no
event may the total | ||||||
20 | credit under this subsection claimed by a
family that is the
| ||||||
21 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
22 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
23 | ending on or after December 31, 2017. In no event shall a | ||||||
24 | credit under
this subsection reduce the taxpayer's liability | ||||||
25 | under this Act to less than
zero. Notwithstanding any other | ||||||
26 | provision of law, for taxable years beginning on or after |
| |||||||
| |||||||
1 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
2 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
3 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
4 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
5 | of all other taxpayers. This subsection is exempt from the | ||||||
6 | provisions of Section 250 of this
Act. | ||||||
7 | For purposes of this subsection: | ||||||
8 | "Qualifying pupils" means individuals who (i) are | ||||||
9 | residents of the State of
Illinois, (ii) are under the age of | ||||||
10 | 21 at the close of the school year for
which a credit is | ||||||
11 | sought, and (iii) during the school year for which a credit
is | ||||||
12 | sought were full-time pupils enrolled in a kindergarten through | ||||||
13 | twelfth
grade education program at any school, as defined in | ||||||
14 | this subsection. | ||||||
15 | "Qualified education expense" means the amount incurred
on | ||||||
16 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
17 | book fees, and
lab fees at the school in which the pupil is | ||||||
18 | enrolled during the regular school
year. | ||||||
19 | "School" means any public or nonpublic elementary or | ||||||
20 | secondary school in
Illinois that is in compliance with Title | ||||||
21 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
22 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
23 | except that nothing shall be construed to require a child to
| ||||||
24 | attend any particular public or nonpublic school to qualify for | ||||||
25 | the credit
under this Section. | ||||||
26 | "Custodian" means, with respect to qualifying pupils, an |
| |||||||
| |||||||
1 | Illinois resident
who is a parent, the parents, a legal | ||||||
2 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
3 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
4 | credit.
| ||||||
5 | (i) For tax years ending on or after December 31, 2006, | ||||||
6 | a taxpayer shall be allowed a credit against the tax | ||||||
7 | imposed by subsections (a) and (b) of this Section for | ||||||
8 | certain amounts paid for unreimbursed eligible remediation | ||||||
9 | costs, as specified in this subsection. For purposes of | ||||||
10 | this Section, "unreimbursed eligible remediation costs" | ||||||
11 | means costs approved by the Illinois Environmental | ||||||
12 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
13 | Environmental Protection Act that were paid in performing | ||||||
14 | environmental remediation at a site within a River Edge | ||||||
15 | Redevelopment Zone for which a No Further Remediation | ||||||
16 | Letter was issued by the Agency and recorded under Section | ||||||
17 | 58.10 of the Environmental Protection Act. The credit must | ||||||
18 | be claimed for the taxable year in which Agency approval of | ||||||
19 | the eligible remediation costs is granted. The credit is | ||||||
20 | not available to any taxpayer if the taxpayer or any | ||||||
21 | related party caused or contributed to, in any material | ||||||
22 | respect, a release of regulated substances on, in, or under | ||||||
23 | the site that was identified and addressed by the remedial | ||||||
24 | action pursuant to the Site Remediation Program of the | ||||||
25 | Environmental Protection Act. Determinations as to credit | ||||||
26 | availability for purposes of this Section shall be made |
| |||||||
| |||||||
1 | consistent with rules adopted by the Pollution Control | ||||||
2 | Board pursuant to the Illinois Administrative Procedure | ||||||
3 | Act for the administration and enforcement of Section 58.9 | ||||||
4 | of the Environmental Protection Act. For purposes of this | ||||||
5 | Section, "taxpayer" includes a person whose tax attributes | ||||||
6 | the taxpayer has succeeded to under Section 381 of the | ||||||
7 | Internal Revenue Code and "related party" includes the | ||||||
8 | persons disallowed a deduction for losses by paragraphs | ||||||
9 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
10 | Code by virtue of being a related taxpayer, as well as any | ||||||
11 | of its partners. The credit allowed against the tax imposed | ||||||
12 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
13 | unreimbursed eligible remediation costs in excess of | ||||||
14 | $100,000 per site. | ||||||
15 | (ii) A credit allowed under this subsection that is | ||||||
16 | unused in the year the credit is earned may be carried | ||||||
17 | forward to each of the 5 taxable years following the year | ||||||
18 | for which the credit is first earned until it is used. This | ||||||
19 | credit shall be applied first to the earliest year for | ||||||
20 | which there is a liability. If there is a credit under this | ||||||
21 | subsection from more than one tax year that is available to | ||||||
22 | offset a liability, the earliest credit arising under this | ||||||
23 | subsection shall be applied first. A credit allowed under | ||||||
24 | this subsection may be sold to a buyer as part of a sale of | ||||||
25 | all or part of the remediation site for which the credit | ||||||
26 | was granted. The purchaser of a remediation site and the |
| |||||||
| |||||||
1 | tax credit shall succeed to the unused credit and remaining | ||||||
2 | carry-forward period of the seller. To perfect the | ||||||
3 | transfer, the assignor shall record the transfer in the | ||||||
4 | chain of title for the site and provide written notice to | ||||||
5 | the Director of the Illinois Department of Revenue of the | ||||||
6 | assignor's intent to sell the remediation site and the | ||||||
7 | amount of the tax credit to be transferred as a portion of | ||||||
8 | the sale. In no event may a credit be transferred to any | ||||||
9 | taxpayer if the taxpayer or a related party would not be | ||||||
10 | eligible under the provisions of subsection (i). | ||||||
11 | (iii) For purposes of this Section, the term "site" | ||||||
12 | shall have the same meaning as under Section 58.2 of the | ||||||
13 | Environmental Protection Act. | ||||||
14 | (o) For each of taxable years during the Compassionate Use | ||||||
15 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
16 | all taxpayers on income arising from the sale or exchange of | ||||||
17 | capital assets, depreciable business property, real property | ||||||
18 | used in the trade or business, and Section 197 intangibles of | ||||||
19 | an organization registrant under the Compassionate Use of | ||||||
20 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
21 | is equal to the amount of federal income tax liability for the | ||||||
22 | taxable year attributable to those sales and exchanges. The | ||||||
23 | surcharge imposed does not apply if: | ||||||
24 | (1) the medical cannabis cultivation center | ||||||
25 | registration, medical cannabis dispensary registration, or | ||||||
26 | the property of a registration is transferred as a result |
| |||||||
| |||||||
1 | of any of the following: | ||||||
2 | (A) bankruptcy, a receivership, or a debt | ||||||
3 | adjustment initiated by or against the initial | ||||||
4 | registration or the substantial owners of the initial | ||||||
5 | registration; | ||||||
6 | (B) cancellation, revocation, or termination of | ||||||
7 | any registration by the Illinois Department of Public | ||||||
8 | Health; | ||||||
9 | (C) a determination by the Illinois Department of | ||||||
10 | Public Health that transfer of the registration is in | ||||||
11 | the best interests of Illinois qualifying patients as | ||||||
12 | defined by the Compassionate Use of Medical Cannabis | ||||||
13 | Pilot Program Act; | ||||||
14 | (D) the death of an owner of the equity interest in | ||||||
15 | a registrant; | ||||||
16 | (E) the acquisition of a controlling interest in | ||||||
17 | the stock or substantially all of the assets of a | ||||||
18 | publicly traded company; | ||||||
19 | (F) a transfer by a parent company to a wholly | ||||||
20 | owned subsidiary; or | ||||||
21 | (G) the transfer or sale to or by one person to | ||||||
22 | another person where both persons were initial owners | ||||||
23 | of the registration when the registration was issued; | ||||||
24 | or | ||||||
25 | (2) the cannabis cultivation center registration, | ||||||
26 | medical cannabis dispensary registration, or the |
| |||||||
| |||||||
1 | controlling interest in a registrant's property is | ||||||
2 | transferred in a transaction to lineal descendants in which | ||||||
3 | no gain or loss is recognized or as a result of a | ||||||
4 | transaction in accordance with Section 351 of the Internal | ||||||
5 | Revenue Code in which no gain or loss is recognized. | ||||||
6 | (p) A taxpayer shall be allowed an annual credit against | ||||||
7 | the tax imposed by subsections (a) and (b) of this Section of | ||||||
8 | an amount equal to 15% of the cost of equipment and materials | ||||||
9 | incorporated into or used in the business of providing | ||||||
10 | broadband services in this State during that year. Such annual | ||||||
11 | credits shall be allowed commencing with the taxable year in | ||||||
12 | which such property is placed in service and continue for 9 | ||||||
13 | consecutive years thereafter. The aggregate credit established | ||||||
14 | by this subsection taken in any one tax year shall be limited | ||||||
15 | to an amount not greater than 50% of the taxpayer's tax | ||||||
16 | liability under subsections (a) and (b) of this Section; | ||||||
17 | provided, however, that any tax credit claimed under this | ||||||
18 | subsection but not used in any taxable year may be carried | ||||||
19 | forward for 10 consecutive years from the close of the tax year | ||||||
20 | in which the credits were earned. The maximum aggregate amount | ||||||
21 | of credits that may be claimed under this subsection shall not | ||||||
22 | exceed the original investment made by the taxpayer in the | ||||||
23 | qualifying equipment. | ||||||
24 | For purposes this subsection: (i) "broadband service" | ||||||
25 | means a service provided by wireline or wireless means capable | ||||||
26 | of delivering high-speed internet access at speeds of at least |
| |||||||
| |||||||
1 | 10 megabits per second of download speed and one megabit per | ||||||
2 | second of upload speed; and (ii) "equipment, and materials | ||||||
3 | incorporated into or used in the business of providing | ||||||
4 | broadband services", means all equipment and materials | ||||||
5 | machinery, software, or other tangible personal property that | ||||||
6 | is used in whole or in part in producing, broadcasting, | ||||||
7 | distributing, sending, receiving, storing, transmitting, | ||||||
8 | retransmitting, amplifying, switching, or routing broadband | ||||||
9 | services, including the monitoring, testing, maintaining, | ||||||
10 | enabling, or facilitating of such equipment, machinery, | ||||||
11 | software, or other infrastructure. Such property includes, but | ||||||
12 | is not limited to, wires, cables including fiber optic cables, | ||||||
13 | antennas, poles, switches, routers, amplifiers, rectifiers, | ||||||
14 | repeaters, receivers, multiplexers, duplexers, transmitters, | ||||||
15 | power equipment, backup power equipment, diagnostic equipment, | ||||||
16 | storage devices, modems, and other general central office | ||||||
17 | equipment, such as channel cards, frames, and cabinets. | ||||||
18 | The credit under this subsection (p) does not apply for | ||||||
19 | property placed in service after December 31, 2023. | ||||||
20 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
21 | Section 10. The Use Tax Act is amended by changing Sections | ||||||
22 | 2 and 3-5 as follows:
| ||||||
23 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| ||||||
24 | Sec. 2. Definitions. |
| |||||||
| |||||||
1 | "Broadband service" means a service provided by wireline or | ||||||
2 | wireless means capable of delivering high-speed internet | ||||||
3 | access at speeds of at least 10 megabits per second of download | ||||||
4 | speed and one megabit per second of upload speed. | ||||||
5 | "Use" means the exercise by any person of any right or | ||||||
6 | power over
tangible personal property incident to the ownership | ||||||
7 | of that property,
except that it does not include the sale of | ||||||
8 | such property in any form as
tangible personal property in the | ||||||
9 | regular course of business to the extent
that such property is | ||||||
10 | not first subjected to a use for which it was
purchased, and | ||||||
11 | does not include the use of such property by its owner for
| ||||||
12 | demonstration purposes: Provided that the property purchased | ||||||
13 | is deemed to
be purchased for the purpose of resale, despite | ||||||
14 | first being used, to the
extent to which it is resold as an | ||||||
15 | ingredient of an intentionally produced
product or by-product | ||||||
16 | of manufacturing. "Use" does not mean the demonstration
use or | ||||||
17 | interim use of tangible personal property by a retailer before | ||||||
18 | he sells
that tangible personal property. For watercraft or | ||||||
19 | aircraft, if the period of
demonstration use or interim use by | ||||||
20 | the retailer exceeds 18 months,
the retailer
shall pay on the | ||||||
21 | retailers' original cost price the tax imposed by this Act,
and | ||||||
22 | no credit for that tax is permitted if the watercraft or | ||||||
23 | aircraft is
subsequently sold by the retailer. "Use" does not | ||||||
24 | mean the physical
incorporation of tangible personal property, | ||||||
25 | to the extent not first subjected
to a use for which it was | ||||||
26 | purchased, as an ingredient or constituent, into
other tangible |
| |||||||
| |||||||
1 | personal property (a) which is sold in the regular course of
| ||||||
2 | business or (b) which the person incorporating such ingredient | ||||||
3 | or constituent
therein has undertaken at the time of such | ||||||
4 | purchase to cause to be transported
in interstate commerce to | ||||||
5 | destinations outside the State of Illinois: Provided
that the | ||||||
6 | property purchased is deemed to be purchased for the purpose of
| ||||||
7 | resale, despite first being used, to the extent to which it is | ||||||
8 | resold as an
ingredient of an intentionally produced product or | ||||||
9 | by-product of manufacturing.
| ||||||
10 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
11 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
12 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
13 | with an inboard motor.
| ||||||
14 | "Purchase at retail" means the acquisition of the ownership | ||||||
15 | of or title
to tangible personal property through a sale at | ||||||
16 | retail.
| ||||||
17 | "Purchaser" means anyone who, through a sale at retail, | ||||||
18 | acquires the
ownership of tangible personal property for a | ||||||
19 | valuable consideration.
| ||||||
20 | "Sale at retail" means any transfer of the ownership of or | ||||||
21 | title to
tangible personal property to a purchaser, for the | ||||||
22 | purpose of use, and not
for the purpose of resale in any form | ||||||
23 | as tangible personal property to the
extent not first subjected | ||||||
24 | to a use for which it was purchased, for a
valuable | ||||||
25 | consideration: Provided that the property purchased is deemed | ||||||
26 | to
be purchased for the purpose of resale, despite first being |
| |||||||
| |||||||
1 | used, to the
extent to which it is resold as an ingredient of | ||||||
2 | an intentionally produced
product or by-product of | ||||||
3 | manufacturing. For this purpose, slag produced as
an incident | ||||||
4 | to manufacturing pig iron or steel and sold is considered to be
| ||||||
5 | an intentionally produced by-product of manufacturing. "Sale | ||||||
6 | at retail"
includes any such transfer made for resale unless | ||||||
7 | made in compliance with
Section 2c of the Retailers' Occupation | ||||||
8 | Tax Act, as incorporated by
reference into Section 12 of this | ||||||
9 | Act. Transactions whereby the possession
of the property is | ||||||
10 | transferred but the seller retains the title as security
for | ||||||
11 | payment of the selling price are sales.
| ||||||
12 | "Sale at retail" shall also be construed to include any | ||||||
13 | Illinois
florist's sales transaction in which the purchase | ||||||
14 | order is received in
Illinois by a florist and the sale is for | ||||||
15 | use or consumption, but the
Illinois florist has a florist in | ||||||
16 | another state deliver the property to the
purchaser or the | ||||||
17 | purchaser's donee in such other state.
| ||||||
18 | Nonreusable tangible personal property that is used by | ||||||
19 | persons engaged in
the business of operating a restaurant, | ||||||
20 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
21 | transferred to customers in the ordinary course of business
as | ||||||
22 | part of the sale of food or beverages and is used to deliver, | ||||||
23 | package, or
consume food or beverages, regardless of where | ||||||
24 | consumption of the food or
beverages occurs. Examples of those | ||||||
25 | items include, but are not limited to
nonreusable, paper and | ||||||
26 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other |
| |||||||
| |||||||
1 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
2 | and
wrapping or packaging
materials that are transferred to | ||||||
3 | customers as part of the sale of food or
beverages in the | ||||||
4 | ordinary course of business.
| ||||||
5 | The purchase, employment and transfer of such tangible | ||||||
6 | personal property
as newsprint and ink for the primary purpose | ||||||
7 | of conveying news (with or
without other information) is not a | ||||||
8 | purchase, use or sale of tangible
personal property.
| ||||||
9 | "Selling price" means the consideration for a sale valued | ||||||
10 | in money
whether received in money or otherwise, including | ||||||
11 | cash, credits, property
other than as hereinafter provided, and | ||||||
12 | services, but not including the
value of or credit given for | ||||||
13 | traded-in tangible personal property where the
item that is | ||||||
14 | traded-in is of like kind and character as that which is being
| ||||||
15 | sold, and shall be determined without any deduction on account | ||||||
16 | of the cost
of the property sold, the cost of materials used, | ||||||
17 | labor or service cost or
any other expense whatsoever, but does | ||||||
18 | not include interest or finance
charges which appear as | ||||||
19 | separate items on the bill of sale or sales
contract nor | ||||||
20 | charges that are added to prices by sellers on account of the
| ||||||
21 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
22 | Act", or on
account of the seller's duty to collect, from the | ||||||
23 | purchaser, the tax that
is imposed by this Act, or, except as | ||||||
24 | otherwise provided with respect to any cigarette tax imposed by | ||||||
25 | a home rule unit, on account of the seller's tax liability | ||||||
26 | under any local occupation tax administered by the Department, |
| |||||||
| |||||||
1 | or, except as otherwise provided with respect to any cigarette | ||||||
2 | tax imposed by a home rule unit on account of the seller's duty | ||||||
3 | to collect, from the purchasers, the tax that is imposed under | ||||||
4 | any local use tax administered by the Department. Effective | ||||||
5 | December 1, 1985, "selling price"
shall include charges that | ||||||
6 | are added to prices by sellers on account of the
seller's tax | ||||||
7 | liability under the Cigarette Tax Act, on account of the | ||||||
8 | seller's
duty to collect, from the purchaser, the tax imposed | ||||||
9 | under the Cigarette Use
Tax Act, and on account of the seller's | ||||||
10 | duty to collect, from the purchaser,
any cigarette tax imposed | ||||||
11 | by a home rule unit.
| ||||||
12 | Notwithstanding any law to the contrary, for any motor | ||||||
13 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
14 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
15 | the vehicle for a defined period that is longer than one year | ||||||
16 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
17 | a self-contained motor vehicle designed or permanently | ||||||
18 | converted to provide living quarters for recreational, | ||||||
19 | camping, or travel use, with direct walk through access to the | ||||||
20 | living quarters from the driver's seat; (B) is of the van | ||||||
21 | configuration designed for the transportation of not less than | ||||||
22 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
23 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
24 | of the first division, "selling price" or "amount of sale" | ||||||
25 | means the consideration received by the lessor pursuant to the | ||||||
26 | lease contract, including amounts due at lease signing and all |
| |||||||
| |||||||
1 | monthly or other regular payments charged over the term of the | ||||||
2 | lease. Also included in the selling price is any amount | ||||||
3 | received by the lessor from the lessee for the leased vehicle | ||||||
4 | that is not calculated at the time the lease is executed, | ||||||
5 | including, but not limited to, excess mileage charges and | ||||||
6 | charges for excess wear and tear. For sales that occur in | ||||||
7 | Illinois, with respect to any amount received by the lessor | ||||||
8 | from the lessee for the leased vehicle that is not calculated | ||||||
9 | at the time the lease is executed, the lessor who purchased the | ||||||
10 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
11 | on those amounts, and the retailer who makes the retail sale of | ||||||
12 | the motor vehicle to the lessor is not required to collect the | ||||||
13 | tax imposed by this Act or to pay the tax imposed by the | ||||||
14 | Retailers' Occupation Tax Act on those amounts. However, the | ||||||
15 | lessor who purchased the motor vehicle assumes the liability | ||||||
16 | for reporting and paying the tax on those amounts directly to | ||||||
17 | the Department in the same form (Illinois Retailers' Occupation | ||||||
18 | Tax, and local retailers' occupation taxes, if applicable) in | ||||||
19 | which the retailer would have reported and paid such tax if the | ||||||
20 | retailer had accounted for the tax to the Department. For | ||||||
21 | amounts received by the lessor from the lessee that are not | ||||||
22 | calculated at the time the lease is executed, the lessor must | ||||||
23 | file the return and pay the tax to the Department by the due | ||||||
24 | date otherwise required by this Act for returns other than | ||||||
25 | transaction returns. If the retailer is entitled under this Act | ||||||
26 | to a discount for collecting and remitting the tax imposed |
| |||||||
| |||||||
1 | under this Act to the Department with respect to the sale of | ||||||
2 | the motor vehicle to the lessor, then the right to the discount | ||||||
3 | provided in this Act shall be transferred to the lessor with | ||||||
4 | respect to the tax paid by the lessor for any amount received | ||||||
5 | by the lessor from the lessee for the leased vehicle that is | ||||||
6 | not calculated at the time the lease is executed; provided that | ||||||
7 | the discount is only allowed if the return is timely filed and | ||||||
8 | for amounts timely paid. The "selling price" of a motor vehicle | ||||||
9 | that is sold on or after January 1, 2015 for the purpose of | ||||||
10 | leasing for a defined period of longer than one year shall not | ||||||
11 | be reduced by the value of or credit given for traded-in | ||||||
12 | tangible personal property owned by the lessor, nor shall it be | ||||||
13 | reduced by the value of or credit given for traded-in tangible | ||||||
14 | personal property owned by the lessee, regardless of whether | ||||||
15 | the trade-in value thereof is assigned by the lessee to the | ||||||
16 | lessor. In the case of a motor vehicle that is sold for the | ||||||
17 | purpose of leasing for a defined period of longer than one | ||||||
18 | year, the sale occurs at the time of the delivery of the | ||||||
19 | vehicle, regardless of the due date of any lease payments. A | ||||||
20 | lessor who incurs a Retailers' Occupation Tax liability on the | ||||||
21 | sale of a motor vehicle coming off lease may not take a credit | ||||||
22 | against that liability for the Use Tax the lessor paid upon the | ||||||
23 | purchase of the motor vehicle (or for any tax the lessor paid | ||||||
24 | with respect to any amount received by the lessor from the | ||||||
25 | lessee for the leased vehicle that was not calculated at the | ||||||
26 | time the lease was executed) if the selling price of the motor |
| |||||||
| |||||||
1 | vehicle at the time of purchase was calculated using the | ||||||
2 | definition of "selling price" as defined in this paragraph. | ||||||
3 | Notwithstanding any other provision of this Act to the | ||||||
4 | contrary, lessors shall file all returns and make all payments | ||||||
5 | required under this paragraph to the Department by electronic | ||||||
6 | means in the manner and form as required by the Department. | ||||||
7 | This paragraph does not apply to leases of motor vehicles for | ||||||
8 | which, at the time the lease is entered into, the term of the | ||||||
9 | lease is not a defined period, including leases with a defined | ||||||
10 | initial period with the option to continue the lease on a | ||||||
11 | month-to-month or other basis beyond the initial defined | ||||||
12 | period. | ||||||
13 | The phrase "like kind and character" shall be liberally | ||||||
14 | construed
(including but not limited to any form of motor | ||||||
15 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
16 | agricultural implement for any other
kind of farm or | ||||||
17 | agricultural implement), while not including a kind of item
| ||||||
18 | which, if sold at retail by that retailer, would be exempt from | ||||||
19 | retailers'
occupation tax and use tax as an isolated or | ||||||
20 | occasional sale.
| ||||||
21 | "Department" means the Department of Revenue.
| ||||||
22 | "Person" means any natural individual, firm, partnership, | ||||||
23 | association,
joint stock company, joint adventure, public or | ||||||
24 | private corporation, limited
liability company, or a
receiver, | ||||||
25 | executor, trustee, guardian or other representative appointed
| ||||||
26 | by order of any court.
|
| |||||||
| |||||||
1 | "Retailer" means and includes every person engaged in the | ||||||
2 | business of
making sales at retail as defined in this Section.
| ||||||
3 | A person who holds himself or herself out as being engaged | ||||||
4 | (or who habitually
engages) in selling tangible personal | ||||||
5 | property at retail is a retailer
hereunder with respect to such | ||||||
6 | sales (and not primarily in a service
occupation) | ||||||
7 | notwithstanding the fact that such person designs and produces
| ||||||
8 | such tangible personal property on special order for the | ||||||
9 | purchaser and in
such a way as to render the property of value | ||||||
10 | only to such purchaser, if
such tangible personal property so | ||||||
11 | produced on special order serves
substantially the same | ||||||
12 | function as stock or standard items of tangible
personal | ||||||
13 | property that are sold at retail.
| ||||||
14 | A person whose activities are organized and conducted | ||||||
15 | primarily as a
not-for-profit service enterprise, and who | ||||||
16 | engages in selling tangible
personal property at retail | ||||||
17 | (whether to the public or merely to members and
their guests) | ||||||
18 | is a retailer with respect to such transactions, excepting
only | ||||||
19 | a person organized and operated exclusively for charitable, | ||||||
20 | religious
or educational purposes either (1), to the extent of | ||||||
21 | sales by such person
to its members, students, patients or | ||||||
22 | inmates of tangible personal property
to be used primarily for | ||||||
23 | the purposes of such person, or (2), to the extent
of sales by | ||||||
24 | such person of tangible personal property which is not sold or
| ||||||
25 | offered for sale by persons organized for profit. The selling | ||||||
26 | of school
books and school supplies by schools at retail to |
| |||||||
| |||||||
1 | students is not
"primarily for the purposes of" the school | ||||||
2 | which does such selling. This
paragraph does not apply to nor | ||||||
3 | subject to taxation occasional dinners,
social or similar | ||||||
4 | activities of a person organized and operated exclusively
for | ||||||
5 | charitable, religious or educational purposes, whether or not | ||||||
6 | such
activities are open to the public.
| ||||||
7 | A person who is the recipient of a grant or contract under | ||||||
8 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
9 | serves meals to
participants in the federal Nutrition Program | ||||||
10 | for the Elderly in return for
contributions established in | ||||||
11 | amount by the individual participant pursuant
to a schedule of | ||||||
12 | suggested fees as provided for in the federal Act is not a
| ||||||
13 | retailer under this Act with respect to such transactions.
| ||||||
14 | Persons who engage in the business of transferring tangible | ||||||
15 | personal
property upon the redemption of trading stamps are | ||||||
16 | retailers hereunder when
engaged in such business.
| ||||||
17 | The isolated or occasional sale of tangible personal | ||||||
18 | property at retail
by a person who does not hold himself out as | ||||||
19 | being engaged (or who does not
habitually engage) in selling | ||||||
20 | such tangible personal property at retail or
a sale through a | ||||||
21 | bulk vending machine does not make such person a retailer
| ||||||
22 | hereunder. However, any person who is engaged in a business | ||||||
23 | which is not
subject to the tax imposed by the "Retailers' | ||||||
24 | Occupation Tax Act" because
of involving the sale of or a | ||||||
25 | contract to sell real estate or a
construction contract to | ||||||
26 | improve real estate, but who, in the course of
conducting such |
| |||||||
| |||||||
1 | business, transfers tangible personal property to users or
| ||||||
2 | consumers in the finished form in which it was purchased, and | ||||||
3 | which does
not become real estate, under any provision of a | ||||||
4 | construction contract or
real estate sale or real estate sales | ||||||
5 | agreement entered into with some
other person arising out of or | ||||||
6 | because of such nontaxable business, is a
retailer to the | ||||||
7 | extent of the value of the tangible personal property so
| ||||||
8 | transferred. If, in such transaction, a separate charge is made | ||||||
9 | for the
tangible personal property so transferred, the value of | ||||||
10 | such property, for
the purposes of this Act, is the amount so | ||||||
11 | separately charged, but not less
than the cost of such property | ||||||
12 | to the transferor; if no separate charge is
made, the value of | ||||||
13 | such property, for the purposes of this Act, is the cost
to the | ||||||
14 | transferor of such tangible personal property.
| ||||||
15 | "Retailer maintaining a place of business in this State", | ||||||
16 | or any like
term, means and includes any of the following | ||||||
17 | retailers:
| ||||||
18 | (1) A retailer having or maintaining within this State, | ||||||
19 | directly or by
a subsidiary, an office, distribution house, | ||||||
20 | sales house, warehouse or other
place of business, or any | ||||||
21 | agent or other representative operating within this
State | ||||||
22 | under the authority of the retailer or its subsidiary, | ||||||
23 | irrespective of
whether such place of business or agent or | ||||||
24 | other representative is located here
permanently or | ||||||
25 | temporarily, or whether such retailer or subsidiary is | ||||||
26 | licensed
to do business in this State. However, the |
| |||||||
| |||||||
1 | ownership of property that is
located at the premises of a | ||||||
2 | printer with which the retailer has contracted for
printing | ||||||
3 | and that consists of the final printed product, property | ||||||
4 | that becomes
a part of the final printed product, or copy | ||||||
5 | from which the printed product is
produced shall not result | ||||||
6 | in the retailer being deemed to have or maintain an
office, | ||||||
7 | distribution house, sales house, warehouse, or other place | ||||||
8 | of business
within this State. | ||||||
9 | (1.1) A retailer having a contract with a person | ||||||
10 | located in this State under which the person, for a | ||||||
11 | commission or other consideration based upon the sale of | ||||||
12 | tangible personal property by the retailer, directly or | ||||||
13 | indirectly refers potential customers to the retailer by | ||||||
14 | providing to the potential customers a promotional code or | ||||||
15 | other mechanism that allows the retailer to track purchases | ||||||
16 | referred by such persons. Examples of mechanisms that allow | ||||||
17 | the retailer to track purchases referred by such persons | ||||||
18 | include but are not limited to the use of a link on the | ||||||
19 | person's Internet website, promotional codes distributed | ||||||
20 | through the person's hand-delivered or mailed material, | ||||||
21 | and promotional codes distributed by the person through | ||||||
22 | radio or other broadcast media. The provisions of this | ||||||
23 | paragraph (1.1) shall apply only if the cumulative gross | ||||||
24 | receipts from sales of tangible personal property by the | ||||||
25 | retailer to customers who are referred to the retailer by | ||||||
26 | all persons in this State under such contracts exceed |
| |||||||
| |||||||
1 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
2 | the last day of March, June, September, and December. A | ||||||
3 | retailer meeting the requirements of this paragraph (1.1) | ||||||
4 | shall be presumed to be maintaining a place of business in | ||||||
5 | this State but may rebut this presumption by submitting | ||||||
6 | proof that the referrals or other activities pursued within | ||||||
7 | this State by such persons were not sufficient to meet the | ||||||
8 | nexus standards of the United States Constitution during | ||||||
9 | the preceding 4 quarterly periods. | ||||||
10 | (1.2) Beginning July 1, 2011, a retailer having a | ||||||
11 | contract with a person located in this State under which: | ||||||
12 | (A) the retailer sells the same or substantially | ||||||
13 | similar line of products as the person located in this | ||||||
14 | State and does so using an identical or substantially | ||||||
15 | similar name, trade name, or trademark as the person | ||||||
16 | located in this State; and | ||||||
17 | (B) the retailer provides a commission or other | ||||||
18 | consideration to the person located in this State based | ||||||
19 | upon the sale of tangible personal property by the | ||||||
20 | retailer. | ||||||
21 | The provisions of this paragraph (1.2) shall apply only if | ||||||
22 | the cumulative gross receipts from sales of tangible | ||||||
23 | personal property by the retailer to customers in this | ||||||
24 | State under all such contracts exceed $10,000 during the | ||||||
25 | preceding 4 quarterly periods ending on the last day of | ||||||
26 | March, June, September, and December.
|
| |||||||
| |||||||
1 | (2) A retailer soliciting orders for tangible personal | ||||||
2 | property by
means of a telecommunication or television | ||||||
3 | shopping system (which utilizes toll
free numbers) which is | ||||||
4 | intended by the retailer to be broadcast by cable
| ||||||
5 | television or other means of broadcasting, to consumers | ||||||
6 | located in this State.
| ||||||
7 | (3) A retailer, pursuant to a contract with a | ||||||
8 | broadcaster or publisher
located in this State, soliciting | ||||||
9 | orders for tangible personal property by
means of | ||||||
10 | advertising which is disseminated primarily to consumers | ||||||
11 | located in
this State and only secondarily to bordering | ||||||
12 | jurisdictions.
| ||||||
13 | (4) A retailer soliciting orders for tangible personal | ||||||
14 | property by mail
if the solicitations are substantial and | ||||||
15 | recurring and if the retailer benefits
from any banking, | ||||||
16 | financing, debt collection, telecommunication, or | ||||||
17 | marketing
activities occurring in this State or benefits | ||||||
18 | from the location in this State
of authorized installation, | ||||||
19 | servicing, or repair facilities.
| ||||||
20 | (5) A retailer that is owned or controlled by the same | ||||||
21 | interests that own
or control any retailer engaging in | ||||||
22 | business in the same or similar line of
business in this | ||||||
23 | State.
| ||||||
24 | (6) A retailer having a franchisee or licensee | ||||||
25 | operating under its trade
name if the franchisee or | ||||||
26 | licensee is required to collect the tax under this
Section.
|
| |||||||
| |||||||
1 | (7) A retailer, pursuant to a contract with a cable | ||||||
2 | television operator
located in this State, soliciting | ||||||
3 | orders for tangible personal property by
means of | ||||||
4 | advertising which is transmitted or distributed over a | ||||||
5 | cable
television system in this State.
| ||||||
6 | (8) A retailer engaging in activities in Illinois, | ||||||
7 | which activities in
the state in which the retail business | ||||||
8 | engaging in such activities is located
would constitute | ||||||
9 | maintaining a place of business in that state.
| ||||||
10 | (9) Beginning October 1, 2018, a retailer making sales | ||||||
11 | of tangible personal property to purchasers in Illinois | ||||||
12 | from outside of Illinois if: | ||||||
13 | (A) the cumulative gross receipts from sales of | ||||||
14 | tangible personal property to purchasers in Illinois | ||||||
15 | are $100,000 or more; or | ||||||
16 | (B) the retailer enters into 200 or more separate | ||||||
17 | transactions for the sale of tangible personal | ||||||
18 | property to purchasers in Illinois. | ||||||
19 | The retailer shall determine on a quarterly basis, | ||||||
20 | ending on the last day of March, June, September, and | ||||||
21 | December, whether he or she meets the criteria of either | ||||||
22 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
23 | preceding 12-month period. If the retailer meets the | ||||||
24 | criteria of either subparagraph (A) or (B) for a 12-month | ||||||
25 | period, he or she is considered a retailer maintaining a | ||||||
26 | place of business in this State and is required to collect |
| |||||||
| |||||||
1 | and remit the tax imposed under this Act and file returns | ||||||
2 | for one year. At the end of that one-year period, the | ||||||
3 | retailer shall determine whether the retailer met the | ||||||
4 | criteria of either subparagraph (A) or (B) during the | ||||||
5 | preceding 12-month period. If the retailer met the criteria | ||||||
6 | in either subparagraph (A) or (B) for the preceding | ||||||
7 | 12-month period, he or she is considered a retailer | ||||||
8 | maintaining a place of business in this State and is | ||||||
9 | required to collect and remit the tax imposed under this | ||||||
10 | Act and file returns for the subsequent year. If at the end | ||||||
11 | of a one-year period a retailer that was required to | ||||||
12 | collect and remit the tax imposed under this Act determines | ||||||
13 | that he or she did not meet the criteria in either | ||||||
14 | subparagraph (A) or (B) during the preceding 12-month | ||||||
15 | period, the retailer shall subsequently determine on a | ||||||
16 | quarterly basis, ending on the last day of March, June, | ||||||
17 | September, and December, whether he or she meets the | ||||||
18 | criteria of either subparagraph (A) or (B) for the | ||||||
19 | preceding 12-month period. | ||||||
20 | "Bulk vending machine" means a vending machine,
containing | ||||||
21 | unsorted confections, nuts, toys, or other items designed
| ||||||
22 | primarily to be used or played with by children
which, when a | ||||||
23 | coin or coins of a denomination not larger than $0.50 are | ||||||
24 | inserted, are dispensed in equal portions, at random and
| ||||||
25 | without selection by the customer.
| ||||||
26 | (Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)
|
| |||||||
| |||||||
1 | (35 ILCS 105/3-5)
| ||||||
2 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
3 | personal property is exempt from the tax imposed by this Act:
| ||||||
4 | (1) Personal property purchased from a corporation, | ||||||
5 | society, association,
foundation, institution, or | ||||||
6 | organization, other than a limited liability
company, that is | ||||||
7 | organized and operated as a not-for-profit service enterprise
| ||||||
8 | for the benefit of persons 65 years of age or older if the | ||||||
9 | personal property was not purchased by the enterprise for the | ||||||
10 | purpose of resale by the
enterprise.
| ||||||
11 | (2) Personal property purchased by a not-for-profit | ||||||
12 | Illinois county
fair association for use in conducting, | ||||||
13 | operating, or promoting the
county fair.
| ||||||
14 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
15 | cultural organization that establishes, by proof required by | ||||||
16 | the
Department by
rule, that it has received an exemption under | ||||||
17 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
18 | organized and operated primarily for the
presentation
or | ||||||
19 | support of arts or cultural programming, activities, or | ||||||
20 | services. These
organizations include, but are not limited to, | ||||||
21 | music and dramatic arts
organizations such as symphony | ||||||
22 | orchestras and theatrical groups, arts and
cultural service | ||||||
23 | organizations, local arts councils, visual arts organizations,
| ||||||
24 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
25 | effective date of Public Act 92-35), however, an entity |
| |||||||
| |||||||
1 | otherwise eligible for this exemption shall not
make tax-free | ||||||
2 | purchases unless it has an active identification number issued | ||||||
3 | by
the Department.
| ||||||
4 | (4) Personal property purchased by a governmental body, by | ||||||
5 | a
corporation, society, association, foundation, or | ||||||
6 | institution organized and
operated exclusively for charitable, | ||||||
7 | religious, or educational purposes, or
by a not-for-profit | ||||||
8 | corporation, society, association, foundation,
institution, or | ||||||
9 | organization that has no compensated officers or employees
and | ||||||
10 | that is organized and operated primarily for the recreation of | ||||||
11 | persons
55 years of age or older. A limited liability company | ||||||
12 | may qualify for the
exemption under this paragraph only if the | ||||||
13 | limited liability company is
organized and operated | ||||||
14 | exclusively for educational purposes. On and after July
1, | ||||||
15 | 1987, however, no entity otherwise eligible for this exemption | ||||||
16 | shall make
tax-free purchases unless it has an active exemption | ||||||
17 | identification number
issued by the Department.
| ||||||
18 | (5) Until July 1, 2003, a passenger car that is a | ||||||
19 | replacement vehicle to
the extent that the
purchase price of | ||||||
20 | the car is subject to the Replacement Vehicle Tax.
| ||||||
21 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
22 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
23 | equipment, including
repair and replacement
parts, both new and | ||||||
24 | used, and including that manufactured on special order,
| ||||||
25 | certified by the purchaser to be used primarily for graphic | ||||||
26 | arts production,
and including machinery and equipment |
| |||||||
| |||||||
1 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
2 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
3 | acting as catalysts effect a direct and immediate change
upon a | ||||||
4 | graphic arts product. Beginning on July 1, 2017, graphic arts | ||||||
5 | machinery and equipment is included in the manufacturing and | ||||||
6 | assembling machinery and equipment exemption under paragraph | ||||||
7 | (18).
| ||||||
8 | (7) Farm chemicals.
| ||||||
9 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
10 | coinage issued by
the State of Illinois, the government of the | ||||||
11 | United States of America, or the
government of any foreign | ||||||
12 | country, and bullion.
| ||||||
13 | (9) Personal property purchased from a teacher-sponsored | ||||||
14 | student
organization affiliated with an elementary or | ||||||
15 | secondary school located in
Illinois.
| ||||||
16 | (10) A motor vehicle that is used for automobile renting, | ||||||
17 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
18 | Act.
| ||||||
19 | (11) Farm machinery and equipment, both new and used,
| ||||||
20 | including that manufactured on special order, certified by the | ||||||
21 | purchaser
to be used primarily for production agriculture or | ||||||
22 | State or federal
agricultural programs, including individual | ||||||
23 | replacement parts for
the machinery and equipment, including | ||||||
24 | machinery and equipment
purchased
for lease,
and including | ||||||
25 | implements of husbandry defined in Section 1-130 of
the | ||||||
26 | Illinois Vehicle Code, farm machinery and agricultural |
| |||||||
| |||||||
1 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
2 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
3 | but excluding other motor
vehicles required to be
registered | ||||||
4 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
5 | hoop houses used for propagating, growing, or
overwintering | ||||||
6 | plants shall be considered farm machinery and equipment under
| ||||||
7 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
8 | boxes shall include units sold
separately from a motor vehicle | ||||||
9 | required to be licensed and units sold mounted
on a motor | ||||||
10 | vehicle required to be licensed if the selling price of the | ||||||
11 | tender
is separately stated.
| ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment
that is
installed or purchased to be | ||||||
14 | installed on farm machinery and equipment
including, but not | ||||||
15 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
16 | or spreaders.
Precision farming equipment includes, but is not | ||||||
17 | limited to, soil testing
sensors, computers, monitors, | ||||||
18 | software, global positioning
and mapping systems, and other | ||||||
19 | such equipment.
| ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and
related equipment used primarily in the
| ||||||
22 | computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment,
and
activities such as, but not limited | ||||||
24 | to,
the collection, monitoring, and correlation of
animal and | ||||||
25 | crop data for the purpose of
formulating animal diets and | ||||||
26 | agricultural chemicals. This item (11) is exempt
from the |
| |||||||
| |||||||
1 | provisions of
Section 3-90.
| ||||||
2 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
3 | to or used by an air common
carrier, certified by the carrier | ||||||
4 | to be used for consumption, shipment, or
storage in the conduct | ||||||
5 | of its business as an air common carrier, for a
flight destined | ||||||
6 | for or returning from a location or locations
outside the | ||||||
7 | United States without regard to previous or subsequent domestic
| ||||||
8 | stopovers.
| ||||||
9 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
10 | or used by an air carrier, certified by the carrier to be used | ||||||
11 | for consumption, shipment, or storage in the conduct of its | ||||||
12 | business as an air common carrier, for a flight that (i) is | ||||||
13 | engaged in foreign trade or is engaged in trade between the | ||||||
14 | United States and any of its possessions and (ii) transports at | ||||||
15 | least one individual or package for hire from the city of | ||||||
16 | origination to the city of final destination on the same | ||||||
17 | aircraft, without regard to a change in the flight number of | ||||||
18 | that aircraft. | ||||||
19 | (13) Proceeds of mandatory service charges separately
| ||||||
20 | stated on customers' bills for the purchase and consumption of | ||||||
21 | food and
beverages purchased at retail from a retailer, to the | ||||||
22 | extent that the proceeds
of the service charge are in fact | ||||||
23 | turned over as tips or as a substitute
for tips to the | ||||||
24 | employees who participate directly in preparing, serving,
| ||||||
25 | hosting or cleaning up the food or beverage function with | ||||||
26 | respect to which
the service charge is imposed.
|
| |||||||
| |||||||
1 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
3 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
4 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
5 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
6 | individual replacement part for oil
field exploration, | ||||||
7 | drilling, and production equipment, and (vi) machinery and
| ||||||
8 | equipment purchased
for lease; but excluding motor vehicles | ||||||
9 | required to be registered under the
Illinois Vehicle Code.
| ||||||
10 | (15) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including that
| ||||||
12 | manufactured on special order, certified by the purchaser to be | ||||||
13 | used
primarily for photoprocessing, and including
| ||||||
14 | photoprocessing machinery and equipment purchased for lease.
| ||||||
15 | (16) Until July 1, 2023, coal and aggregate exploration, | ||||||
16 | mining, off-highway hauling,
processing, maintenance, and | ||||||
17 | reclamation equipment,
including replacement parts and | ||||||
18 | equipment, and
including equipment purchased for lease, but | ||||||
19 | excluding motor
vehicles required to be registered under the | ||||||
20 | Illinois Vehicle Code. The changes made to this Section by | ||||||
21 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
22 | for credit or refund is allowed on or after August 16, 2013 | ||||||
23 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
24 | during the period beginning July 1, 2003 and ending on August | ||||||
25 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
26 | (17) Until July 1, 2003, distillation machinery and |
| |||||||
| |||||||
1 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
2 | retailer, certified by the user to be used
only for the | ||||||
3 | production of ethyl alcohol that will be used for consumption
| ||||||
4 | as motor fuel or as a component of motor fuel for the personal | ||||||
5 | use of the
user, and not subject to sale or resale.
| ||||||
6 | (18) Manufacturing and assembling machinery and equipment | ||||||
7 | used
primarily in the process of manufacturing or assembling | ||||||
8 | tangible
personal property for wholesale or retail sale or | ||||||
9 | lease, whether that sale
or lease is made directly by the | ||||||
10 | manufacturer or by some other person,
whether the materials | ||||||
11 | used in the process are
owned by the manufacturer or some other | ||||||
12 | person, or whether that sale or
lease is made apart from or as | ||||||
13 | an incident to the seller's engaging in
the service occupation | ||||||
14 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
15 | other similar items of no commercial value on
special order for | ||||||
16 | a particular purchaser. The exemption provided by this | ||||||
17 | paragraph (18) does not include machinery and equipment used in | ||||||
18 | (i) the generation of electricity for wholesale or retail sale; | ||||||
19 | (ii) the generation or treatment of natural or artificial gas | ||||||
20 | for wholesale or retail sale that is delivered to customers | ||||||
21 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
22 | water for wholesale or retail sale that is delivered to | ||||||
23 | customers through pipes, pipelines, or mains. The provisions of | ||||||
24 | Public Act 98-583 are declaratory of existing law as to the | ||||||
25 | meaning and scope of this exemption. Beginning on July 1, 2017, | ||||||
26 | the exemption provided by this paragraph (18) includes, but is |
| |||||||
| |||||||
1 | not limited to, graphic arts machinery and equipment, as | ||||||
2 | defined in paragraph (6) of this Section.
| ||||||
3 | (19) Personal property delivered to a purchaser or | ||||||
4 | purchaser's donee
inside Illinois when the purchase order for | ||||||
5 | that personal property was
received by a florist located | ||||||
6 | outside Illinois who has a florist located
inside Illinois | ||||||
7 | deliver the personal property.
| ||||||
8 | (20) Semen used for artificial insemination of livestock | ||||||
9 | for direct
agricultural production.
| ||||||
10 | (21) Horses, or interests in horses, registered with and | ||||||
11 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
12 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
13 | Horse Association, United States
Trotting Association, or | ||||||
14 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
15 | racing for prizes. This item (21) is exempt from the provisions | ||||||
16 | of Section 3-90, and the exemption provided for under this item | ||||||
17 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
18 | claim for credit or refund is allowed on or after January 1, | ||||||
19 | 2008
for such taxes paid during the period beginning May 30, | ||||||
20 | 2000 and ending on January 1, 2008.
| ||||||
21 | (22) Computers and communications equipment utilized for | ||||||
22 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
23 | analysis, or treatment of hospital patients purchased by a | ||||||
24 | lessor who leases
the
equipment, under a lease of one year or | ||||||
25 | longer executed or in effect at the
time the lessor would | ||||||
26 | otherwise be subject to the tax imposed by this Act, to a
|
| |||||||
| |||||||
1 | hospital
that has been issued an active tax exemption | ||||||
2 | identification number by
the
Department under Section 1g of the | ||||||
3 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
4 | manner that does not qualify for
this exemption or is used in | ||||||
5 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
6 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
7 | case may
be, based on the fair market value of the property at | ||||||
8 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
9 | or attempt to collect an
amount (however
designated) that | ||||||
10 | purports to reimburse that lessor for the tax imposed by this
| ||||||
11 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
12 | has not been
paid by the lessor. If a lessor improperly | ||||||
13 | collects any such amount from the
lessee, the lessee shall have | ||||||
14 | a legal right to claim a refund of that amount
from the lessor. | ||||||
15 | If, however, that amount is not refunded to the lessee for
any | ||||||
16 | reason, the lessor is liable to pay that amount to the | ||||||
17 | Department.
| ||||||
18 | (23) Personal property purchased by a lessor who leases the
| ||||||
19 | property, under
a
lease of
one year or longer executed or in | ||||||
20 | effect at the time
the lessor would otherwise be subject to the | ||||||
21 | tax imposed by this Act,
to a governmental body
that has been | ||||||
22 | issued an active sales tax exemption identification number by | ||||||
23 | the
Department under Section 1g of the Retailers' Occupation | ||||||
24 | Tax Act.
If the
property is leased in a manner that does not | ||||||
25 | qualify for
this exemption
or used in any other non-exempt | ||||||
26 | manner, the lessor shall be liable for the
tax imposed under |
| |||||||
| |||||||
1 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
2 | on the fair market value of the property at the time the
| ||||||
3 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
4 | to collect an
amount (however
designated) that purports to | ||||||
5 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
6 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
7 | paid by the lessor. If a lessor improperly collects any such | ||||||
8 | amount from the
lessee, the lessee shall have a legal right to | ||||||
9 | claim a refund of that amount
from the lessor. If, however, | ||||||
10 | that amount is not refunded to the lessee for
any reason, the | ||||||
11 | lessor is liable to pay that amount to the Department.
| ||||||
12 | (24) Beginning with taxable years ending on or after | ||||||
13 | December
31, 1995
and
ending with taxable years ending on or | ||||||
14 | before December 31, 2004,
personal property that is
donated for | ||||||
15 | disaster relief to be used in a State or federally declared
| ||||||
16 | disaster area in Illinois or bordering Illinois by a | ||||||
17 | manufacturer or retailer
that is registered in this State to a | ||||||
18 | corporation, society, association,
foundation, or institution | ||||||
19 | that has been issued a sales tax exemption
identification | ||||||
20 | number by the Department that assists victims of the disaster
| ||||||
21 | who reside within the declared disaster area.
| ||||||
22 | (25) Beginning with taxable years ending on or after | ||||||
23 | December
31, 1995 and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004, personal
property that is used in the | ||||||
25 | performance of infrastructure repairs in this
State, including | ||||||
26 | but not limited to municipal roads and streets, access roads,
|
| |||||||
| |||||||
1 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
2 | line extensions,
water distribution and purification | ||||||
3 | facilities, storm water drainage and
retention facilities, and | ||||||
4 | sewage treatment facilities, resulting from a State
or | ||||||
5 | federally declared disaster in Illinois or bordering Illinois | ||||||
6 | when such
repairs are initiated on facilities located in the | ||||||
7 | declared disaster area
within 6 months after the disaster.
| ||||||
8 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
9 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
10 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
11 | provisions
of
Section 3-90.
| ||||||
12 | (27) A motor vehicle, as that term is defined in Section | ||||||
13 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
14 | corporation, limited liability company,
society, association, | ||||||
15 | foundation, or institution that is determined by the
Department | ||||||
16 | to be organized and operated exclusively for educational | ||||||
17 | purposes.
For purposes of this exemption, "a corporation, | ||||||
18 | limited liability company,
society, association, foundation, | ||||||
19 | or institution organized and operated
exclusively for | ||||||
20 | educational purposes" means all tax-supported public schools,
| ||||||
21 | private schools that offer systematic instruction in useful | ||||||
22 | branches of
learning by methods common to public schools and | ||||||
23 | that compare favorably in
their scope and intensity with the | ||||||
24 | course of study presented in tax-supported
schools, and | ||||||
25 | vocational or technical schools or institutes organized and
| ||||||
26 | operated exclusively to provide a course of study of not less |
| |||||||
| |||||||
1 | than 6 weeks
duration and designed to prepare individuals to | ||||||
2 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
3 | industrial, business, or commercial
occupation.
| ||||||
4 | (28) Beginning January 1, 2000, personal property, | ||||||
5 | including
food,
purchased through fundraising
events for the | ||||||
6 | benefit of
a public or private elementary or
secondary school, | ||||||
7 | a group of those schools, or one or more school
districts if | ||||||
8 | the events are
sponsored by an entity recognized by the school | ||||||
9 | district that consists
primarily of volunteers and includes
| ||||||
10 | parents and teachers of the school children. This paragraph | ||||||
11 | does not apply
to fundraising
events (i) for the benefit of | ||||||
12 | private home instruction or (ii)
for which the fundraising | ||||||
13 | entity purchases the personal property sold at
the events from | ||||||
14 | another individual or entity that sold the property for the
| ||||||
15 | purpose of resale by the fundraising entity and that
profits | ||||||
16 | from the sale to the
fundraising entity. This paragraph is | ||||||
17 | exempt
from the provisions
of Section 3-90.
| ||||||
18 | (29) Beginning January 1, 2000 and through December 31, | ||||||
19 | 2001, new or
used automatic vending
machines that prepare and | ||||||
20 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
21 | items, and replacement parts for these machines.
Beginning | ||||||
22 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
23 | for machines used in
commercial, coin-operated amusement and | ||||||
24 | vending business if a use or occupation
tax is paid on the | ||||||
25 | gross receipts derived from the use of the commercial,
| ||||||
26 | coin-operated amusement and vending machines.
This
paragraph
|
| |||||||
| |||||||
1 | is exempt from the provisions of Section 3-90.
| ||||||
2 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
3 | food for human consumption that is to be consumed off the | ||||||
4 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
5 | drinks, and food that
has been prepared for immediate | ||||||
6 | consumption) and prescription and
nonprescription medicines, | ||||||
7 | drugs, medical appliances, and insulin, urine
testing | ||||||
8 | materials, syringes, and needles used by diabetics, for human | ||||||
9 | use, when
purchased for use by a person receiving medical | ||||||
10 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
11 | resides in a licensed long-term care facility,
as defined in | ||||||
12 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
13 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
14 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
15 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
16 | Public Act 92-227),
computers and communications equipment
| ||||||
17 | utilized for any hospital purpose and equipment used in the | ||||||
18 | diagnosis,
analysis, or treatment of hospital patients | ||||||
19 | purchased by a lessor who leases
the equipment, under a lease | ||||||
20 | of one year or longer executed or in effect at the
time the | ||||||
21 | lessor would otherwise be subject to the tax imposed by this | ||||||
22 | Act, to a
hospital that has been issued an active tax exemption | ||||||
23 | identification number by
the Department under Section 1g of the | ||||||
24 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
25 | manner that does not qualify for this exemption or is
used in | ||||||
26 | any other nonexempt manner, the lessor shall be liable for the |
| |||||||
| |||||||
1 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
2 | case may be, based on
the fair market value of the property at | ||||||
3 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
4 | or attempt to collect an amount (however
designated) that | ||||||
5 | purports to reimburse that lessor for the tax imposed by this
| ||||||
6 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
7 | has not been
paid by the lessor. If a lessor improperly | ||||||
8 | collects any such amount from the
lessee, the lessee shall have | ||||||
9 | a legal right to claim a refund of that amount
from the lessor. | ||||||
10 | If, however, that amount is not refunded to the lessee for
any | ||||||
11 | reason, the lessor is liable to pay that amount to the | ||||||
12 | Department.
This paragraph is exempt from the provisions of | ||||||
13 | Section 3-90.
| ||||||
14 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
15 | Public Act 92-227),
personal property purchased by a lessor who | ||||||
16 | leases the property,
under a lease of one year or longer | ||||||
17 | executed or in effect at the time the
lessor would otherwise be | ||||||
18 | subject to the tax imposed by this Act, to a
governmental body | ||||||
19 | that has been issued an active sales tax exemption
| ||||||
20 | identification number by the Department under Section 1g of the | ||||||
21 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
22 | manner that does not
qualify for this exemption or used in any | ||||||
23 | other nonexempt manner, the lessor
shall be liable for the tax | ||||||
24 | imposed under this Act or the Service Use Tax Act,
as the case | ||||||
25 | may be, based on the fair market value of the property at the | ||||||
26 | time
the nonqualifying use occurs. No lessor shall collect or |
| |||||||
| |||||||
1 | attempt to collect
an amount (however designated) that purports | ||||||
2 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
3 | Service Use Tax Act, as the case may be, if the
tax has not been | ||||||
4 | paid by the lessor. If a lessor improperly collects any such
| ||||||
5 | amount from the lessee, the lessee shall have a legal right to | ||||||
6 | claim a refund
of that amount from the lessor. If, however, | ||||||
7 | that amount is not refunded to
the lessee for any reason, the | ||||||
8 | lessor is liable to pay that amount to the
Department. This | ||||||
9 | paragraph is exempt from the provisions of Section 3-90.
| ||||||
10 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
11 | the use in this State of motor vehicles of
the second division | ||||||
12 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
13 | are subject to the commercial distribution fee imposed under | ||||||
14 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
15 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
16 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
17 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
18 | to the commercial distribution fee imposed under Section | ||||||
19 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
20 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
21 | this exemption applies to repair and
replacement parts added | ||||||
22 | after the initial purchase of such a motor vehicle if
that | ||||||
23 | motor
vehicle is used in a manner that would qualify for the | ||||||
24 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
25 | purposes of this paragraph, the term "used for commercial | ||||||
26 | purposes" means the transportation of persons or property in |
| |||||||
| |||||||
1 | furtherance of any commercial or industrial enterprise, | ||||||
2 | whether for-hire or not.
| ||||||
3 | (34) Beginning January 1, 2008, tangible personal property | ||||||
4 | used in the construction or maintenance of a community water | ||||||
5 | supply, as defined under Section 3.145 of the Environmental | ||||||
6 | Protection Act, that is operated by a not-for-profit | ||||||
7 | corporation that holds a valid water supply permit issued under | ||||||
8 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
9 | exempt from the provisions of Section 3-90. | ||||||
10 | (35) Beginning January 1, 2010, materials, parts, | ||||||
11 | equipment, components, and furnishings incorporated into or | ||||||
12 | upon an aircraft as part of the modification, refurbishment, | ||||||
13 | completion, replacement, repair, or maintenance of the | ||||||
14 | aircraft. This exemption includes consumable supplies used in | ||||||
15 | the modification, refurbishment, completion, replacement, | ||||||
16 | repair, and maintenance of aircraft, but excludes any | ||||||
17 | materials, parts, equipment, components, and consumable | ||||||
18 | supplies used in the modification, replacement, repair, and | ||||||
19 | maintenance of aircraft engines or power plants, whether such | ||||||
20 | engines or power plants are installed or uninstalled upon any | ||||||
21 | such aircraft. "Consumable supplies" include, but are not | ||||||
22 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
23 | lubricants, cleaning solution, latex gloves, and protective | ||||||
24 | films. This exemption applies only to the use of qualifying | ||||||
25 | tangible personal property by persons who modify, refurbish, | ||||||
26 | complete, repair, replace, or maintain aircraft and who (i) |
| |||||||
| |||||||
1 | hold an Air Agency Certificate and are empowered to operate an | ||||||
2 | approved repair station by the Federal Aviation | ||||||
3 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
4 | operations in accordance with Part 145 of the Federal Aviation | ||||||
5 | Regulations. The exemption does not include aircraft operated | ||||||
6 | by a commercial air carrier providing scheduled passenger air | ||||||
7 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
8 | of the Federal Aviation Regulations. The changes made to this | ||||||
9 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
10 | law. | ||||||
11 | (36) Tangible personal property purchased by a | ||||||
12 | public-facilities corporation, as described in Section | ||||||
13 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
14 | constructing or furnishing a municipal convention hall, but | ||||||
15 | only if the legal title to the municipal convention hall is | ||||||
16 | transferred to the municipality without any further | ||||||
17 | consideration by or on behalf of the municipality at the time | ||||||
18 | of the completion of the municipal convention hall or upon the | ||||||
19 | retirement or redemption of any bonds or other debt instruments | ||||||
20 | issued by the public-facilities corporation in connection with | ||||||
21 | the development of the municipal convention hall. This | ||||||
22 | exemption includes existing public-facilities corporations as | ||||||
23 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
24 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
25 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
26 | and menstrual cups. |
| |||||||
| |||||||
1 | (38) Merchandise that is subject to the Rental Purchase | ||||||
2 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
3 | that the item is purchased to be rented subject to a rental | ||||||
4 | purchase agreement, as defined in the Rental Purchase Agreement | ||||||
5 | Act, and provide proof of registration under the Rental | ||||||
6 | Purchase Agreement Occupation and Use Tax Act. This paragraph | ||||||
7 | is exempt from the provisions of Section 3-90. | ||||||
8 | (39) Tangible personal property purchased by a purchaser | ||||||
9 | who is exempt from the tax imposed by this Act by operation of | ||||||
10 | federal law. This paragraph is exempt from the provisions of | ||||||
11 | Section 3-90. | ||||||
12 | (40) Until December 31, 2023, equipment and materials | ||||||
13 | incorporated into or used in the business of providing | ||||||
14 | broadband services, including all equipment and materials, | ||||||
15 | machinery, software, or other tangible personal property that | ||||||
16 | is used in whole or in part in producing, broadcasting, | ||||||
17 | distributing, sending, receiving, storing, transmitting, | ||||||
18 | retransmitting, amplifying, switching, or routing broadband | ||||||
19 | services, including the monitoring, testing, maintaining, | ||||||
20 | enabling, or facilitating of such equipment, machinery, | ||||||
21 | software, or other infrastructure. Such property includes, but | ||||||
22 | is not limited to, wires, cables including fiber optic cables, | ||||||
23 | antennas, poles, switches, routers, amplifiers, rectifiers, | ||||||
24 | repeaters, receivers, multiplexers, duplexers, transmitters, | ||||||
25 | power equipment, backup power equipment, diagnostic equipment, | ||||||
26 | storage devices, modems, and other general central office |
| |||||||
| |||||||
1 | equipment, such as channel cards, frames, and cabinets. | ||||||
2 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
3 | 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff. | ||||||
4 | 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised | ||||||
5 | 1-8-19.)
| ||||||
6 | Section 15. The Service Use Tax Act is amended by changing | ||||||
7 | Sections 2 and 3-5 as follows:
| ||||||
8 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
9 | Sec. 2. Definitions. In this Act: | ||||||
10 | "Broadband service" means a service provided by wireline or | ||||||
11 | wireless means capable of delivering high-speed internet | ||||||
12 | access at speeds of at least 10 megabits per second of download | ||||||
13 | speed and one megabit per second of upload speed. | ||||||
14 | "Use" means the exercise by any person of any right or | ||||||
15 | power
over tangible personal property incident to the ownership | ||||||
16 | of that
property, but does not include the sale or use for | ||||||
17 | demonstration by him
of that property in any form as tangible | ||||||
18 | personal property in the
regular course of business.
"Use" does | ||||||
19 | not mean the interim
use of
tangible personal property nor the | ||||||
20 | physical incorporation of tangible
personal property, as an | ||||||
21 | ingredient or constituent, into other tangible
personal | ||||||
22 | property, (a) which is sold in the regular course of business
| ||||||
23 | or (b) which the person incorporating such ingredient or | ||||||
24 | constituent
therein has undertaken at the time of such purchase |
| |||||||
| |||||||
1 | to cause to be
transported in interstate commerce to | ||||||
2 | destinations outside the State of
Illinois.
| ||||||
3 | "Purchased from a serviceman" means the acquisition of the | ||||||
4 | ownership
of, or title to, tangible personal property through a | ||||||
5 | sale of service.
| ||||||
6 | "Purchaser" means any person who, through a sale of | ||||||
7 | service, acquires
the ownership of, or title to, any tangible | ||||||
8 | personal property.
| ||||||
9 | "Cost price" means the consideration paid by the serviceman | ||||||
10 | for a
purchase valued in money, whether paid in money or | ||||||
11 | otherwise, including
cash, credits and services, and shall be | ||||||
12 | determined without any
deduction on account of the supplier's | ||||||
13 | cost of the property sold or on
account of any other expense | ||||||
14 | incurred by the supplier. When a serviceman
contracts out part | ||||||
15 | or all of the services required in his sale of service,
it | ||||||
16 | shall be presumed that the cost price to the serviceman of the | ||||||
17 | property
transferred to him or her by his or her subcontractor | ||||||
18 | is equal to 50% of
the subcontractor's charges to the | ||||||
19 | serviceman in the absence of proof of
the consideration paid by | ||||||
20 | the subcontractor for the purchase of such property.
| ||||||
21 | "Selling price" means the consideration for a sale valued | ||||||
22 | in money
whether received in money or otherwise, including | ||||||
23 | cash, credits and
service, and shall be determined without any | ||||||
24 | deduction on account of the
serviceman's cost of the property | ||||||
25 | sold, the cost of materials used,
labor or service cost or any | ||||||
26 | other expense whatsoever, but does not
include interest or |
| |||||||
| |||||||
1 | finance charges which appear as separate items on
the bill of | ||||||
2 | sale or sales contract nor charges that are added to prices
by | ||||||
3 | sellers on account of the seller's duty to collect, from the
| ||||||
4 | purchaser, the tax that is imposed by this Act.
| ||||||
5 | "Department" means the Department of Revenue.
| ||||||
6 | "Person" means any natural individual, firm, partnership,
| ||||||
7 | association, joint stock company, joint venture, public or | ||||||
8 | private
corporation, limited liability company, and any | ||||||
9 | receiver, executor, trustee,
guardian or other representative | ||||||
10 | appointed by order of any court.
| ||||||
11 | "Sale of service" means any transaction except:
| ||||||
12 | (1) a retail sale of tangible personal property taxable | ||||||
13 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
14 | Tax Act.
| ||||||
15 | (2) a sale of tangible personal property for the | ||||||
16 | purpose of resale
made in compliance with Section 2c of the | ||||||
17 | Retailers' Occupation Tax Act.
| ||||||
18 | (3) except as hereinafter provided, a sale or transfer | ||||||
19 | of tangible
personal property as an incident to the | ||||||
20 | rendering of service for or by
any governmental body, or | ||||||
21 | for or by any corporation, society,
association, | ||||||
22 | foundation or institution organized and operated
| ||||||
23 | exclusively for charitable, religious or educational | ||||||
24 | purposes or any
not-for-profit corporation, society, | ||||||
25 | association, foundation,
institution or organization which | ||||||
26 | has no compensated officers or
employees and which is |
| |||||||
| |||||||
1 | organized and operated primarily for the
recreation of | ||||||
2 | persons 55 years of age or older. A limited liability | ||||||
3 | company
may qualify for the exemption under this paragraph | ||||||
4 | only if the limited
liability company is organized and | ||||||
5 | operated exclusively for educational
purposes.
| ||||||
6 | (4) (blank).
| ||||||
7 | (4a) a sale or transfer of tangible personal
property | ||||||
8 | as an incident
to the rendering of service for owners, | ||||||
9 | lessors, or shippers of tangible
personal property which is | ||||||
10 | utilized by interstate carriers for hire for
use as rolling | ||||||
11 | stock moving in interstate commerce so long as so used by
| ||||||
12 | interstate carriers for hire, and equipment operated by a
| ||||||
13 | telecommunications provider, licensed as a common carrier | ||||||
14 | by the Federal
Communications Commission, which is | ||||||
15 | permanently installed in or affixed to
aircraft moving in | ||||||
16 | interstate commerce.
| ||||||
17 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
18 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
19 | division with a gross vehicle weight in excess of 8,000 | ||||||
20 | pounds as an
incident to the rendering of service if that | ||||||
21 | motor
vehicle is subject
to the commercial distribution fee | ||||||
22 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
23 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
24 | use in this State of motor vehicles of the second division: | ||||||
25 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
26 | pounds; (ii) that are subject to the commercial |
| |||||||
| |||||||
1 | distribution fee imposed under Section 3-815.1 of the | ||||||
2 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
3 | for commercial purposes. Through June 30, 2005, this
| ||||||
4 | exemption applies to repair and replacement parts added | ||||||
5 | after the
initial
purchase of such a motor vehicle if that | ||||||
6 | motor vehicle is used in a manner that
would
qualify for | ||||||
7 | the rolling stock exemption otherwise provided for in this | ||||||
8 | Act. For purposes of this paragraph, "used for commercial | ||||||
9 | purposes" means the transportation of persons or property | ||||||
10 | in furtherance of any commercial or industrial enterprise | ||||||
11 | whether for-hire or not.
| ||||||
12 | (5) a sale or transfer of machinery and equipment used | ||||||
13 | primarily in the
process of the manufacturing or | ||||||
14 | assembling, either in an existing, an expanded
or a new | ||||||
15 | manufacturing facility, of tangible personal property for | ||||||
16 | wholesale or
retail sale or lease, whether such sale or | ||||||
17 | lease is made directly by the
manufacturer or by some other | ||||||
18 | person, whether the materials used in the process
are owned | ||||||
19 | by the manufacturer or some other person, or whether such | ||||||
20 | sale or
lease is made apart from or as an incident to the | ||||||
21 | seller's engaging in a
service occupation and the | ||||||
22 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
23 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
24 | exemption provided by this paragraph (5) does not include | ||||||
25 | machinery and equipment used in (i) the generation of | ||||||
26 | electricity for wholesale or retail sale; (ii) the |
| |||||||
| |||||||
1 | generation or treatment of natural or artificial gas for | ||||||
2 | wholesale or retail sale that is delivered to customers | ||||||
3 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
4 | of water for wholesale or retail sale that is delivered to | ||||||
5 | customers through pipes, pipelines, or mains. The | ||||||
6 | provisions of Public Act 98-583 are declaratory of existing | ||||||
7 | law as to the meaning and scope of this exemption. The | ||||||
8 | exemption under this paragraph (5) is exempt from the | ||||||
9 | provisions of Section 3-75.
| ||||||
10 | (5a) the repairing, reconditioning or remodeling, for | ||||||
11 | a
common carrier by rail, of tangible personal property | ||||||
12 | which belongs to such
carrier for hire, and as to which | ||||||
13 | such carrier receives the physical possession
of the | ||||||
14 | repaired, reconditioned or remodeled item of tangible | ||||||
15 | personal property
in Illinois, and which such carrier | ||||||
16 | transports, or shares with another common
carrier in the | ||||||
17 | transportation of such property, out of Illinois on a | ||||||
18 | standard
uniform bill of lading showing the person who | ||||||
19 | repaired, reconditioned or
remodeled the property to a | ||||||
20 | destination outside Illinois, for use outside
Illinois.
| ||||||
21 | (5b) a sale or transfer of tangible personal property | ||||||
22 | which is produced by
the seller thereof on special order in | ||||||
23 | such a way as to have made the
applicable tax the Service | ||||||
24 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
25 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
26 | carrier by rail
which receives the physical possession of |
| |||||||
| |||||||
1 | such property in Illinois, and which
transports such | ||||||
2 | property, or shares with another common carrier in the
| ||||||
3 | transportation of such property, out of Illinois on a | ||||||
4 | standard uniform bill of
lading showing the seller of the | ||||||
5 | property as the shipper or consignor of such
property to a | ||||||
6 | destination outside Illinois, for use outside Illinois.
| ||||||
7 | (6) until July 1, 2003, a sale or transfer of | ||||||
8 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
9 | and assembled or installed by the retailer, which
machinery | ||||||
10 | and equipment is certified by the user to be used only for | ||||||
11 | the
production of ethyl alcohol that will be used for | ||||||
12 | consumption as motor fuel
or as a component of motor fuel | ||||||
13 | for the personal use of such user and not
subject to sale | ||||||
14 | or resale.
| ||||||
15 | (7) at the election of any serviceman not required to | ||||||
16 | be
otherwise registered as a retailer under Section 2a of | ||||||
17 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
18 | year sales
of service in which the aggregate annual cost | ||||||
19 | price of tangible
personal property transferred as an | ||||||
20 | incident to the sales of service is
less than 35%, or 75% | ||||||
21 | in the case of servicemen transferring prescription
drugs | ||||||
22 | or servicemen engaged in graphic arts production, of the | ||||||
23 | aggregate
annual total gross receipts from all sales of | ||||||
24 | service. The purchase of
such tangible personal property by | ||||||
25 | the serviceman shall be subject to tax
under the Retailers' | ||||||
26 | Occupation Tax Act and the Use Tax Act.
However, if a
|
| |||||||
| |||||||
1 | primary serviceman who has made the election described in | ||||||
2 | this paragraph
subcontracts service work to a secondary | ||||||
3 | serviceman who has also made the
election described in this | ||||||
4 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
5 | liability if the secondary serviceman (i) has paid or will | ||||||
6 | pay
Use
Tax on his or her cost price of any tangible | ||||||
7 | personal property transferred
to the primary serviceman | ||||||
8 | and (ii) certifies that fact in writing to the
primary
| ||||||
9 | serviceman.
| ||||||
10 | Tangible personal property transferred incident to the | ||||||
11 | completion of a
maintenance agreement is exempt from the tax | ||||||
12 | imposed pursuant to this Act.
| ||||||
13 | Exemption (5) also includes machinery and equipment used in | ||||||
14 | the general
maintenance or repair of such exempt machinery and | ||||||
15 | equipment or for in-house
manufacture of exempt machinery and | ||||||
16 | equipment. On and after July 1, 2017, exemption (5) also
| ||||||
17 | includes graphic arts machinery and equipment, as
defined in | ||||||
18 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
19 | exemption does not include machinery and equipment used in (i) | ||||||
20 | the generation of electricity for wholesale or retail sale; | ||||||
21 | (ii) the generation or treatment of natural or artificial gas | ||||||
22 | for wholesale or retail sale that is delivered to customers | ||||||
23 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
24 | water for wholesale or retail sale that is delivered to | ||||||
25 | customers through pipes, pipelines, or mains. The provisions of | ||||||
26 | Public Act 98-583 are declaratory of existing law as to the |
| |||||||
| |||||||
1 | meaning and scope of this exemption. For the purposes of | ||||||
2 | exemption
(5), each of these terms shall have the following | ||||||
3 | meanings: (1) "manufacturing
process" shall mean the | ||||||
4 | production of any article of tangible personal
property, | ||||||
5 | whether such article is a finished product or an article for | ||||||
6 | use in
the process of manufacturing or assembling a different | ||||||
7 | article of tangible
personal property, by procedures commonly | ||||||
8 | regarded as manufacturing,
processing, fabricating, or | ||||||
9 | refining which changes some existing
material or materials into | ||||||
10 | a material with a different form, use or
name. In relation to a | ||||||
11 | recognized integrated business composed of a
series of | ||||||
12 | operations which collectively constitute manufacturing, or
| ||||||
13 | individually constitute manufacturing operations, the | ||||||
14 | manufacturing
process shall be deemed to commence with the | ||||||
15 | first operation or stage of
production in the series, and shall | ||||||
16 | not be deemed to end until the
completion of the final product | ||||||
17 | in the last operation or stage of
production in the series; and | ||||||
18 | further, for purposes of exemption (5),
photoprocessing is | ||||||
19 | deemed to be a manufacturing process of tangible
personal | ||||||
20 | property for wholesale or retail sale; (2) "assembling process" | ||||||
21 | shall
mean the production of any article of tangible personal | ||||||
22 | property, whether such
article is a finished product or an | ||||||
23 | article for use in the process of
manufacturing or assembling a | ||||||
24 | different article of tangible personal
property, by the | ||||||
25 | combination of existing materials in a manner commonly
regarded | ||||||
26 | as assembling which results in a material of a different form,
|
| |||||||
| |||||||
1 | use or name; (3) "machinery" shall mean major mechanical | ||||||
2 | machines or
major components of such machines contributing to a | ||||||
3 | manufacturing or
assembling process; and (4) "equipment" shall | ||||||
4 | include any independent
device or tool separate from any | ||||||
5 | machinery but essential to an
integrated manufacturing or | ||||||
6 | assembly process; including computers
used primarily in a | ||||||
7 | manufacturer's computer
assisted design, computer assisted | ||||||
8 | manufacturing (CAD/CAM) system;
or any subunit or assembly | ||||||
9 | comprising a component of any machinery or
auxiliary, adjunct | ||||||
10 | or attachment parts of machinery, such as tools, dies,
jigs, | ||||||
11 | fixtures, patterns and molds; or any parts which require | ||||||
12 | periodic
replacement in the course of normal operation; but | ||||||
13 | shall not include hand
tools.
Equipment includes chemicals or | ||||||
14 | chemicals acting as catalysts but only if the
chemicals or | ||||||
15 | chemicals acting as catalysts effect a direct and immediate | ||||||
16 | change
upon a
product being manufactured or assembled for | ||||||
17 | wholesale or retail sale or
lease.
The purchaser of such | ||||||
18 | machinery and equipment who has an active
resale registration | ||||||
19 | number shall furnish such number to the seller at the
time of | ||||||
20 | purchase. The user of such machinery and equipment and tools
| ||||||
21 | without an active resale registration number shall prepare a | ||||||
22 | certificate of
exemption for each transaction stating facts | ||||||
23 | establishing the exemption for
that transaction, which | ||||||
24 | certificate shall be available to the Department
for inspection | ||||||
25 | or audit. The Department shall prescribe the form of the
| ||||||
26 | certificate.
|
| |||||||
| |||||||
1 | Any informal rulings, opinions or letters issued by the | ||||||
2 | Department in
response to an inquiry or request for any opinion | ||||||
3 | from any person
regarding the coverage and applicability of | ||||||
4 | exemption (5) to specific
devices shall be published, | ||||||
5 | maintained as a public record, and made
available for public | ||||||
6 | inspection and copying. If the informal ruling,
opinion or | ||||||
7 | letter contains trade secrets or other confidential
| ||||||
8 | information, where possible the Department shall delete such | ||||||
9 | information
prior to publication. Whenever such informal | ||||||
10 | rulings, opinions, or
letters contain any policy of general | ||||||
11 | applicability, the Department
shall formulate and adopt such | ||||||
12 | policy as a rule in accordance with the
provisions of the | ||||||
13 | Illinois Administrative Procedure Act.
| ||||||
14 | On and after July 1, 1987, no entity otherwise eligible | ||||||
15 | under exemption
(3) of this Section shall make tax-free | ||||||
16 | purchases unless it has an active
exemption identification | ||||||
17 | number issued by the Department.
| ||||||
18 | The purchase, employment and transfer of such tangible | ||||||
19 | personal
property as newsprint and ink for the primary purpose | ||||||
20 | of conveying news
(with or without other information) is not a | ||||||
21 | purchase, use or sale of
service or of tangible personal | ||||||
22 | property within the meaning of this Act.
| ||||||
23 | "Serviceman" means any person who is engaged in the | ||||||
24 | occupation of
making sales of service.
| ||||||
25 | "Sale at retail" means "sale at retail" as defined in the | ||||||
26 | Retailers'
Occupation Tax Act.
|
| |||||||
| |||||||
1 | "Supplier" means any person who makes sales of tangible | ||||||
2 | personal
property to servicemen for the purpose of resale as an | ||||||
3 | incident to a
sale of service.
| ||||||
4 | "Serviceman maintaining a place of business in this State", | ||||||
5 | or any
like term, means and includes any serviceman:
| ||||||
6 | (1) having or maintaining within this State, directly | ||||||
7 | or by a
subsidiary, an office, distribution house, sales | ||||||
8 | house, warehouse or
other place of business, or any agent | ||||||
9 | or other representative operating
within this State under | ||||||
10 | the authority of the serviceman or its
subsidiary, | ||||||
11 | irrespective of whether such place of business or agent or
| ||||||
12 | other representative is located here permanently or | ||||||
13 | temporarily, or
whether such serviceman or subsidiary is | ||||||
14 | licensed to do business in this
State; | ||||||
15 | (1.1) having a contract with a person located in this | ||||||
16 | State under which the person, for a commission or other | ||||||
17 | consideration based on the sale of service by the | ||||||
18 | serviceman, directly or indirectly refers potential | ||||||
19 | customers to the serviceman by providing to the potential | ||||||
20 | customers a promotional code or other mechanism that allows | ||||||
21 | the serviceman to track purchases referred by such persons. | ||||||
22 | Examples of mechanisms that allow the serviceman to track | ||||||
23 | purchases referred by such persons include but are not | ||||||
24 | limited to the use of a link on the person's Internet | ||||||
25 | website, promotional codes distributed through the | ||||||
26 | person's hand-delivered or mailed material, and |
| |||||||
| |||||||
1 | promotional codes distributed by the person through radio | ||||||
2 | or other broadcast media. The provisions of this paragraph | ||||||
3 | (1.1) shall apply only if the cumulative gross receipts | ||||||
4 | from sales of service by the serviceman to customers who | ||||||
5 | are referred to the serviceman by all persons in this State | ||||||
6 | under such contracts exceed $10,000 during the preceding 4 | ||||||
7 | quarterly periods ending on the last day of March, June, | ||||||
8 | September, and December; a serviceman meeting the | ||||||
9 | requirements of this paragraph (1.1) shall be presumed to | ||||||
10 | be maintaining a place of business in this State but may | ||||||
11 | rebut this presumption by submitting proof that the | ||||||
12 | referrals or other activities pursued within this State by | ||||||
13 | such persons were not sufficient to meet the nexus | ||||||
14 | standards of the United States Constitution during the | ||||||
15 | preceding 4 quarterly periods; | ||||||
16 | (1.2) beginning July 1, 2011, having a contract with a | ||||||
17 | person located in this State under which: | ||||||
18 | (A) the serviceman sells the same or substantially | ||||||
19 | similar line of services as the person located in this | ||||||
20 | State and does so using an identical or substantially | ||||||
21 | similar name, trade name, or trademark as the person | ||||||
22 | located in this State; and | ||||||
23 | (B) the serviceman provides a commission or other | ||||||
24 | consideration to the person located in this State based | ||||||
25 | upon the sale of services by the serviceman. | ||||||
26 | The provisions of this paragraph (1.2) shall apply only if |
| |||||||
| |||||||
1 | the cumulative gross receipts from sales of service by the | ||||||
2 | serviceman to customers in this State under all such | ||||||
3 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
4 | periods ending on the last day of March, June, September, | ||||||
5 | and December;
| ||||||
6 | (2) soliciting orders for tangible personal property | ||||||
7 | by means of a
telecommunication or television shopping | ||||||
8 | system (which utilizes toll free
numbers) which is intended | ||||||
9 | by the retailer to be broadcast by cable
television or | ||||||
10 | other means of broadcasting, to consumers located in this | ||||||
11 | State;
| ||||||
12 | (3) pursuant to a contract with a broadcaster or | ||||||
13 | publisher located in this
State, soliciting orders for | ||||||
14 | tangible personal property by means of advertising
which is | ||||||
15 | disseminated primarily to consumers located in this State | ||||||
16 | and only
secondarily to bordering jurisdictions;
| ||||||
17 | (4) soliciting orders for tangible personal property | ||||||
18 | by mail if the
solicitations are substantial and recurring | ||||||
19 | and if the retailer benefits
from any banking, financing, | ||||||
20 | debt collection, telecommunication, or
marketing | ||||||
21 | activities occurring in this State or benefits from the | ||||||
22 | location
in this State of authorized installation, | ||||||
23 | servicing, or repair facilities;
| ||||||
24 | (5) being owned or controlled by the same interests | ||||||
25 | which own or
control any retailer engaging in business in | ||||||
26 | the same or similar line of
business in this State;
|
| |||||||
| |||||||
1 | (6) having a franchisee or licensee operating under its | ||||||
2 | trade name if
the franchisee or licensee is required to | ||||||
3 | collect the tax under this Section;
| ||||||
4 | (7) pursuant to a contract with a cable television | ||||||
5 | operator located in
this State, soliciting orders for | ||||||
6 | tangible personal property by means of
advertising which is | ||||||
7 | transmitted or distributed over a cable television
system | ||||||
8 | in this State;
| ||||||
9 | (8) engaging in activities in Illinois, which | ||||||
10 | activities in the
state in which the supply business | ||||||
11 | engaging in such activities is located
would constitute | ||||||
12 | maintaining a place of business in that state; or
| ||||||
13 | (9) beginning October 1, 2018, making sales of service | ||||||
14 | to purchasers in Illinois from outside of Illinois if: | ||||||
15 | (A) the cumulative gross receipts from sales of | ||||||
16 | service to purchasers in Illinois are $100,000 or more; | ||||||
17 | or | ||||||
18 | (B) the serviceman enters into 200 or more separate | ||||||
19 | transactions for sales of service to purchasers in | ||||||
20 | Illinois. | ||||||
21 | The serviceman shall determine on a quarterly basis, | ||||||
22 | ending on the last day of March, June, September, and | ||||||
23 | December, whether he or she meets the criteria of either | ||||||
24 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
25 | preceding 12-month period. If the serviceman meets the | ||||||
26 | criteria of either subparagraph (A) or (B) for a 12-month |
| |||||||
| |||||||
1 | period, he or she is considered a serviceman maintaining a | ||||||
2 | place of business in this State and is required to collect | ||||||
3 | and remit the tax imposed under this Act and file returns | ||||||
4 | for one year. At the end of that one-year period, the | ||||||
5 | serviceman shall determine whether the serviceman met the | ||||||
6 | criteria of either subparagraph (A) or (B) during the | ||||||
7 | preceding 12-month period. If the serviceman met the | ||||||
8 | criteria in either subparagraph (A) or (B) for the | ||||||
9 | preceding 12-month period, he or she is considered a | ||||||
10 | serviceman maintaining a place of business in this State | ||||||
11 | and is required to collect and remit the tax imposed under | ||||||
12 | this Act and file returns for the subsequent year. If at | ||||||
13 | the end of a one-year period a serviceman that was required | ||||||
14 | to collect and remit the tax imposed under this Act | ||||||
15 | determines that he or she did not meet the criteria in | ||||||
16 | either subparagraph (A) or (B) during the preceding | ||||||
17 | 12-month period, the serviceman subsequently shall | ||||||
18 | determine on a quarterly basis, ending on the last day of | ||||||
19 | March, June, September, and December, whether he or she | ||||||
20 | meets the criteria of either subparagraph (A) or (B) for | ||||||
21 | the preceding 12-month period. | ||||||
22 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
23 | 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
| ||||||
24 | (35 ILCS 110/3-5)
| ||||||
25 | Sec. 3-5. Exemptions. Use of the following tangible |
| |||||||
| |||||||
1 | personal property
is exempt from the tax imposed by this Act:
| ||||||
2 | (1) Personal property purchased from a corporation, | ||||||
3 | society,
association, foundation, institution, or | ||||||
4 | organization, other than a limited
liability company, that is | ||||||
5 | organized and operated as a not-for-profit service
enterprise | ||||||
6 | for the benefit of persons 65 years of age or older if the | ||||||
7 | personal
property was not purchased by the enterprise for the | ||||||
8 | purpose of resale by the
enterprise.
| ||||||
9 | (2) Personal property purchased by a non-profit Illinois | ||||||
10 | county fair
association for use in conducting, operating, or | ||||||
11 | promoting the county fair.
| ||||||
12 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
13 | cultural
organization that establishes, by proof required by | ||||||
14 | the Department by rule,
that it has received an exemption under | ||||||
15 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
16 | organized and operated primarily for the
presentation
or | ||||||
17 | support of arts or cultural programming, activities, or | ||||||
18 | services. These
organizations include, but are not limited to, | ||||||
19 | music and dramatic arts
organizations such as symphony | ||||||
20 | orchestras and theatrical groups, arts and
cultural service | ||||||
21 | organizations, local arts councils, visual arts organizations,
| ||||||
22 | and media arts organizations.
On and after July 1, 2001 ( the | ||||||
23 | effective date of Public Act 92-35) this amendatory Act of the | ||||||
24 | 92nd General
Assembly , however, an entity otherwise eligible | ||||||
25 | for this exemption shall not
make tax-free purchases unless it | ||||||
26 | has an active identification number issued by
the Department.
|
| |||||||
| |||||||
1 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
2 | coinage issued
by the State of Illinois, the government of the | ||||||
3 | United States of America,
or the government of any foreign | ||||||
4 | country, and bullion.
| ||||||
5 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
6 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
7 | equipment, including
repair and
replacement parts, both new and | ||||||
8 | used, and including that manufactured on
special order or | ||||||
9 | purchased for lease, certified by the purchaser to be used
| ||||||
10 | primarily for graphic arts production.
Equipment includes | ||||||
11 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
12 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
13 | immediate
change upon a graphic arts product. Beginning on July | ||||||
14 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
15 | the manufacturing and assembling machinery and equipment | ||||||
16 | exemption under Section 2 of this Act.
| ||||||
17 | (6) Personal property purchased from a teacher-sponsored | ||||||
18 | student
organization affiliated with an elementary or | ||||||
19 | secondary school located
in Illinois.
| ||||||
20 | (7) Farm machinery and equipment, both new and used, | ||||||
21 | including that
manufactured on special order, certified by the | ||||||
22 | purchaser to be used
primarily for production agriculture or | ||||||
23 | State or federal agricultural
programs, including individual | ||||||
24 | replacement parts for the machinery and
equipment, including | ||||||
25 | machinery and equipment purchased for lease,
and including | ||||||
26 | implements of husbandry defined in Section 1-130 of
the |
| |||||||
| |||||||
1 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
2 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
3 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
4 | but
excluding other motor vehicles required to be registered | ||||||
5 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
6 | hoop houses used for propagating, growing, or
overwintering | ||||||
7 | plants shall be considered farm machinery and equipment under
| ||||||
8 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
9 | shall include units sold
separately from a motor vehicle | ||||||
10 | required to be licensed and units sold mounted
on a motor | ||||||
11 | vehicle required to be licensed if the selling price of the | ||||||
12 | tender
is separately stated.
| ||||||
13 | Farm machinery and equipment shall include precision | ||||||
14 | farming equipment
that is
installed or purchased to be | ||||||
15 | installed on farm machinery and equipment
including, but not | ||||||
16 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
17 | or spreaders.
Precision farming equipment includes, but is not | ||||||
18 | limited to,
soil testing sensors, computers, monitors, | ||||||
19 | software, global positioning
and mapping systems, and other | ||||||
20 | such equipment.
| ||||||
21 | Farm machinery and equipment also includes computers, | ||||||
22 | sensors, software, and
related equipment used primarily in the
| ||||||
23 | computer-assisted operation of production agriculture | ||||||
24 | facilities, equipment,
and activities such as, but
not limited | ||||||
25 | to,
the collection, monitoring, and correlation of
animal and | ||||||
26 | crop data for the purpose of
formulating animal diets and |
| |||||||
| |||||||
1 | agricultural chemicals. This item (7) is exempt
from the | ||||||
2 | provisions of
Section 3-75.
| ||||||
3 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
4 | to or used by an air common
carrier, certified by the carrier | ||||||
5 | to be used for consumption, shipment, or
storage in the conduct | ||||||
6 | of its business as an air common carrier, for a
flight destined | ||||||
7 | for or returning from a location or locations
outside the | ||||||
8 | United States without regard to previous or subsequent domestic
| ||||||
9 | stopovers.
| ||||||
10 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
11 | or used by an air carrier, certified by the carrier to be used | ||||||
12 | for consumption, shipment, or storage in the conduct of its | ||||||
13 | business as an air common carrier, for a flight that (i) is | ||||||
14 | engaged in foreign trade or is engaged in trade between the | ||||||
15 | United States and any of its possessions and (ii) transports at | ||||||
16 | least one individual or package for hire from the city of | ||||||
17 | origination to the city of final destination on the same | ||||||
18 | aircraft, without regard to a change in the flight number of | ||||||
19 | that aircraft. | ||||||
20 | (9) Proceeds of mandatory service charges separately | ||||||
21 | stated on
customers' bills for the purchase and consumption of | ||||||
22 | food and beverages
acquired as an incident to the purchase of a | ||||||
23 | service from a serviceman, to
the extent that the proceeds of | ||||||
24 | the service charge are in fact
turned over as tips or as a | ||||||
25 | substitute for tips to the employees who
participate directly | ||||||
26 | in preparing, serving, hosting or cleaning up the
food or |
| |||||||
| |||||||
1 | beverage function with respect to which the service charge is | ||||||
2 | imposed.
| ||||||
3 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
4 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
5 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
6 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
7 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
8 | individual replacement part for oil field exploration,
| ||||||
9 | drilling, and production equipment, and (vi) machinery and | ||||||
10 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
11 | required to be registered under the Illinois
Vehicle Code.
| ||||||
12 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
13 | and
equipment, including repair and replacement parts, both new | ||||||
14 | and
used, including that manufactured on special order, | ||||||
15 | certified by the
purchaser to be used primarily for | ||||||
16 | photoprocessing, and including
photoprocessing machinery and | ||||||
17 | equipment purchased for lease.
| ||||||
18 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
19 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
20 | reclamation equipment, including
replacement parts and | ||||||
21 | equipment, and including
equipment purchased for lease, but | ||||||
22 | excluding motor vehicles required to be
registered under the | ||||||
23 | Illinois Vehicle Code. The changes made to this Section by | ||||||
24 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
25 | for credit or refund is allowed on or after August 16, 2013 | ||||||
26 | (the effective date of Public Act 98-456)
for such taxes paid |
| |||||||
| |||||||
1 | during the period beginning July 1, 2003 and ending on August | ||||||
2 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
3 | (13) Semen used for artificial insemination of livestock | ||||||
4 | for direct
agricultural production.
| ||||||
5 | (14) Horses, or interests in horses, registered with and | ||||||
6 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
7 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
8 | Horse Association, United States
Trotting Association, or | ||||||
9 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
10 | racing for prizes. This item (14) is exempt from the provisions | ||||||
11 | of Section 3-75, and the exemption provided for under this item | ||||||
12 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
13 | claim for credit or refund is allowed on or after January 1, | ||||||
14 | 2008 ( the effective date of Public Act 95-88) this amendatory | ||||||
15 | Act of the 95th General Assembly for such taxes paid during the | ||||||
16 | period beginning May 30, 2000 and ending on January 1, 2008 | ||||||
17 | ( the effective date of Public Act 95-88) this amendatory Act of | ||||||
18 | the 95th General Assembly .
| ||||||
19 | (15) Computers and communications equipment utilized for | ||||||
20 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
21 | analysis, or treatment of hospital patients purchased by a | ||||||
22 | lessor who leases
the
equipment, under a lease of one year or | ||||||
23 | longer executed or in effect at the
time
the lessor would | ||||||
24 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
25 | hospital
that has been issued an active tax exemption | ||||||
26 | identification number by the
Department under Section 1g of the |
| |||||||
| |||||||
1 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
2 | manner that does not qualify for
this exemption
or is used in | ||||||
3 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
4 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
5 | be, based on the fair market value of the property at the time | ||||||
6 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
7 | attempt to collect an
amount (however
designated) that purports | ||||||
8 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
9 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
10 | the lessor. If a lessor improperly collects any such amount | ||||||
11 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
12 | refund of that amount
from the lessor. If, however, that amount | ||||||
13 | is not refunded to the lessee for
any reason, the lessor is | ||||||
14 | liable to pay that amount to the Department.
| ||||||
15 | (16) Personal property purchased by a lessor who leases the
| ||||||
16 | property, under
a
lease of one year or longer executed or in | ||||||
17 | effect at the time
the lessor would otherwise be subject to the | ||||||
18 | tax imposed by this Act,
to a governmental body
that has been | ||||||
19 | issued an active tax exemption identification number by the
| ||||||
20 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
21 | Act.
If the
property is leased in a manner that does not | ||||||
22 | qualify for
this exemption
or is used in any other non-exempt | ||||||
23 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
24 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
25 | fair market value of the property at the time the
| ||||||
26 | non-qualifying use occurs. No lessor shall collect or attempt |
| |||||||
| |||||||
1 | to collect an
amount (however
designated) that purports to | ||||||
2 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
3 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
4 | the lessor. If a lessor improperly collects any such amount | ||||||
5 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
6 | refund of that amount
from the lessor. If, however, that amount | ||||||
7 | is not refunded to the lessee for
any reason, the lessor is | ||||||
8 | liable to pay that amount to the Department.
| ||||||
9 | (17) Beginning with taxable years ending on or after | ||||||
10 | December
31,
1995
and
ending with taxable years ending on or | ||||||
11 | before December 31, 2004,
personal property that is
donated for | ||||||
12 | disaster relief to be used in a State or federally declared
| ||||||
13 | disaster area in Illinois or bordering Illinois by a | ||||||
14 | manufacturer or retailer
that is registered in this State to a | ||||||
15 | corporation, society, association,
foundation, or institution | ||||||
16 | that has been issued a sales tax exemption
identification | ||||||
17 | number by the Department that assists victims of the disaster
| ||||||
18 | who reside within the declared disaster area.
| ||||||
19 | (18) Beginning with taxable years ending on or after | ||||||
20 | December
31, 1995 and
ending with taxable years ending on or | ||||||
21 | before December 31, 2004, personal
property that is used in the | ||||||
22 | performance of infrastructure repairs in this
State, including | ||||||
23 | but not limited to municipal roads and streets, access roads,
| ||||||
24 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
25 | line extensions,
water distribution and purification | ||||||
26 | facilities, storm water drainage and
retention facilities, and |
| |||||||
| |||||||
1 | sewage treatment facilities, resulting from a State
or | ||||||
2 | federally declared disaster in Illinois or bordering Illinois | ||||||
3 | when such
repairs are initiated on facilities located in the | ||||||
4 | declared disaster area
within 6 months after the disaster.
| ||||||
5 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
6 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
7 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
8 | provisions
of
Section 3-75.
| ||||||
9 | (20) A motor vehicle, as that term is defined in Section | ||||||
10 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
11 | corporation, limited liability
company, society, association, | ||||||
12 | foundation, or institution that is determined by
the Department | ||||||
13 | to be organized and operated exclusively for educational
| ||||||
14 | purposes. For purposes of this exemption, "a corporation, | ||||||
15 | limited liability
company, society, association, foundation, | ||||||
16 | or institution organized and
operated
exclusively for | ||||||
17 | educational purposes" means all tax-supported public schools,
| ||||||
18 | private schools that offer systematic instruction in useful | ||||||
19 | branches of
learning by methods common to public schools and | ||||||
20 | that compare favorably in
their scope and intensity with the | ||||||
21 | course of study presented in tax-supported
schools, and | ||||||
22 | vocational or technical schools or institutes organized and
| ||||||
23 | operated exclusively to provide a course of study of not less | ||||||
24 | than 6 weeks
duration and designed to prepare individuals to | ||||||
25 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
26 | industrial, business, or commercial
occupation.
|
| |||||||
| |||||||
1 | (21) Beginning January 1, 2000, personal property, | ||||||
2 | including
food,
purchased through fundraising
events for the | ||||||
3 | benefit of
a public or private elementary or
secondary school, | ||||||
4 | a group of those schools, or one or more school
districts if | ||||||
5 | the events are
sponsored by an entity recognized by the school | ||||||
6 | district that consists
primarily of volunteers and includes
| ||||||
7 | parents and teachers of the school children. This paragraph | ||||||
8 | does not apply
to fundraising
events (i) for the benefit of | ||||||
9 | private home instruction or (ii)
for which the fundraising | ||||||
10 | entity purchases the personal property sold at
the events from | ||||||
11 | another individual or entity that sold the property for the
| ||||||
12 | purpose of resale by the fundraising entity and that
profits | ||||||
13 | from the sale to the
fundraising entity. This paragraph is | ||||||
14 | exempt
from the provisions
of Section 3-75.
| ||||||
15 | (22) Beginning January 1, 2000
and through December 31, | ||||||
16 | 2001, new or used automatic vending
machines that prepare and | ||||||
17 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
18 | items, and replacement parts for these machines.
Beginning | ||||||
19 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
20 | for machines used in
commercial, coin-operated
amusement
and | ||||||
21 | vending business if a use or occupation tax is paid on the | ||||||
22 | gross receipts
derived from
the use of the commercial, | ||||||
23 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
24 | is exempt from the provisions of Section 3-75.
| ||||||
25 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
26 | food for human consumption that is to be consumed off the
|
| |||||||
| |||||||
1 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
2 | drinks, and food that
has been prepared for immediate | ||||||
3 | consumption) and prescription and
nonprescription medicines, | ||||||
4 | drugs, medical appliances, and insulin, urine
testing | ||||||
5 | materials, syringes, and needles used by diabetics, for human | ||||||
6 | use, when
purchased for use by a person receiving medical | ||||||
7 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
8 | resides in a licensed long-term care facility,
as defined in | ||||||
9 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
10 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
11 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
12 | (24) Beginning on August 2, 2001 ( the effective date of | ||||||
13 | Public Act 92-227) this amendatory Act of the 92nd
General | ||||||
14 | Assembly , computers and communications equipment
utilized for | ||||||
15 | any hospital purpose and equipment used in the diagnosis,
| ||||||
16 | analysis, or treatment of hospital patients purchased by a | ||||||
17 | lessor who leases
the equipment, under a lease of one year or | ||||||
18 | longer executed or in effect at the
time the lessor would | ||||||
19 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
20 | hospital that has been issued an active tax exemption | ||||||
21 | identification number by
the Department under Section 1g of the | ||||||
22 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
23 | manner that does not qualify for this exemption or is
used in | ||||||
24 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
25 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
26 | be, based on the
fair market value of the property at the time |
| |||||||
| |||||||
1 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
2 | attempt to collect an amount (however
designated) that purports | ||||||
3 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
4 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
5 | the lessor. If a lessor improperly collects any such amount | ||||||
6 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
7 | refund of that amount
from the lessor. If, however, that amount | ||||||
8 | is not refunded to the lessee for
any reason, the lessor is | ||||||
9 | liable to pay that amount to the Department.
This paragraph is | ||||||
10 | exempt from the provisions of Section 3-75.
| ||||||
11 | (25) Beginning
on August 2, 2001 ( the effective date of | ||||||
12 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
13 | Assembly ,
personal property purchased by a lessor
who leases | ||||||
14 | the property, under a lease of one year or longer executed or | ||||||
15 | in
effect at the time the lessor would otherwise be subject to | ||||||
16 | the tax imposed by
this Act, to a governmental body that has | ||||||
17 | been issued an active tax exemption
identification number by | ||||||
18 | the Department under Section 1g of the Retailers'
Occupation | ||||||
19 | Tax Act. If the property is leased in a manner that does not
| ||||||
20 | qualify for this exemption or is used in any other nonexempt | ||||||
21 | manner, the
lessor shall be liable for the tax imposed under | ||||||
22 | this Act or the Use Tax Act,
as the case may be, based on the | ||||||
23 | fair market value of the property at the time
the nonqualifying | ||||||
24 | use occurs. No lessor shall collect or attempt to collect
an | ||||||
25 | amount (however designated) that purports to reimburse that | ||||||
26 | lessor for the
tax imposed by this Act or the Use Tax Act, as |
| |||||||
| |||||||
1 | the case may be, if the tax has
not been paid by the lessor. If | ||||||
2 | a lessor improperly collects any such amount
from the lessee, | ||||||
3 | the lessee shall have a legal right to claim a refund of that
| ||||||
4 | amount from the lessor. If, however, that amount is not | ||||||
5 | refunded to the lessee
for any reason, the lessor is liable to | ||||||
6 | pay that amount to the Department.
This paragraph is exempt | ||||||
7 | from the provisions of Section 3-75.
| ||||||
8 | (26) Beginning January 1, 2008, tangible personal property | ||||||
9 | used in the construction or maintenance of a community water | ||||||
10 | supply, as defined under Section 3.145 of the Environmental | ||||||
11 | Protection Act, that is operated by a not-for-profit | ||||||
12 | corporation that holds a valid water supply permit issued under | ||||||
13 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
14 | exempt from the provisions of Section 3-75.
| ||||||
15 | (27) Beginning January 1, 2010, materials, parts, | ||||||
16 | equipment, components, and furnishings incorporated into or | ||||||
17 | upon an aircraft as part of the modification, refurbishment, | ||||||
18 | completion, replacement, repair, or maintenance of the | ||||||
19 | aircraft. This exemption includes consumable supplies used in | ||||||
20 | the modification, refurbishment, completion, replacement, | ||||||
21 | repair, and maintenance of aircraft, but excludes any | ||||||
22 | materials, parts, equipment, components, and consumable | ||||||
23 | supplies used in the modification, replacement, repair, and | ||||||
24 | maintenance of aircraft engines or power plants, whether such | ||||||
25 | engines or power plants are installed or uninstalled upon any | ||||||
26 | such aircraft. "Consumable supplies" include, but are not |
| |||||||
| |||||||
1 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
2 | lubricants, cleaning solution, latex gloves, and protective | ||||||
3 | films. This exemption applies only to the use of qualifying | ||||||
4 | tangible personal property transferred incident to the | ||||||
5 | modification, refurbishment, completion, replacement, repair, | ||||||
6 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
7 | Agency Certificate and are empowered to operate an approved | ||||||
8 | repair station by the Federal Aviation Administration, (ii) | ||||||
9 | have a Class IV Rating, and (iii) conduct operations in | ||||||
10 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
11 | The exemption does not include aircraft operated by a | ||||||
12 | commercial air carrier providing scheduled passenger air | ||||||
13 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
14 | of the Federal Aviation Regulations. The changes made to this | ||||||
15 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
16 | law. | ||||||
17 | (28) Tangible personal property purchased by a | ||||||
18 | public-facilities corporation, as described in Section | ||||||
19 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
20 | constructing or furnishing a municipal convention hall, but | ||||||
21 | only if the legal title to the municipal convention hall is | ||||||
22 | transferred to the municipality without any further | ||||||
23 | consideration by or on behalf of the municipality at the time | ||||||
24 | of the completion of the municipal convention hall or upon the | ||||||
25 | retirement or redemption of any bonds or other debt instruments | ||||||
26 | issued by the public-facilities corporation in connection with |
| |||||||
| |||||||
1 | the development of the municipal convention hall. This | ||||||
2 | exemption includes existing public-facilities corporations as | ||||||
3 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
4 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
5 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
6 | and menstrual cups. | ||||||
7 | (30) Tangible personal property transferred to a purchaser | ||||||
8 | who is exempt from the tax imposed by this Act by operation of | ||||||
9 | federal law. This paragraph is exempt from the provisions of | ||||||
10 | Section 3-75. | ||||||
11 | (31) Until December 31, 2023, equipment and materials | ||||||
12 | incorporated into or used in the business of providing | ||||||
13 | broadband services, including all equipment and materials, | ||||||
14 | machinery, software, or other tangible personal property that | ||||||
15 | is used in whole or in part in producing, broadcasting, | ||||||
16 | distributing, sending, receiving, storing, transmitting, | ||||||
17 | retransmitting, amplifying, switching, or routing broadband | ||||||
18 | services, including the monitoring, testing, maintaining, | ||||||
19 | enabling, or facilitating of such equipment, machinery, | ||||||
20 | software, or other infrastructure. Such property includes, but | ||||||
21 | is not limited to, wires, cables including fiber optic cables, | ||||||
22 | antennas, poles, switches, routers, amplifiers, rectifiers, | ||||||
23 | repeaters, receivers, multiplexers, duplexers, transmitters, | ||||||
24 | power equipment, backup power equipment, diagnostic equipment, | ||||||
25 | storage devices, modems, and other general central office | ||||||
26 | equipment, such as channel cards, frames, and cabinets. |
| |||||||
| |||||||
1 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
2 | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. | ||||||
3 | 1-4-19; revised 1-8-19.)
| ||||||
4 | Section 20. The Service Occupation Tax Act is amended by | ||||||
5 | changing Sections 2 and 3-5 as follows:
| ||||||
6 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||||||
7 | Sec. 2. In this Act: | ||||||
8 | "Broadband service" means a service provided by wireline or | ||||||
9 | wireless means capable of delivering high-speed internet | ||||||
10 | access at speeds of at least 10 megabits per second of download | ||||||
11 | speed and one megabit per second of upload speed. | ||||||
12 | "Transfer" means any transfer of the title to property or | ||||||
13 | of
the ownership of property whether or not the transferor | ||||||
14 | retains title as
security for the payment of amounts due him | ||||||
15 | from the transferee.
| ||||||
16 | "Cost Price" means the consideration paid by the serviceman | ||||||
17 | for a
purchase valued in money, whether paid in money or | ||||||
18 | otherwise, including
cash, credits and services, and shall be | ||||||
19 | determined without any deduction
on account of the supplier's | ||||||
20 | cost of the property sold or on account of any
other expense | ||||||
21 | incurred by the supplier. When a serviceman contracts out
part | ||||||
22 | or all of the services required in his sale of service, it | ||||||
23 | shall be
presumed that the cost price to the serviceman of the | ||||||
24 | property
transferred to him by his or her subcontractor is |
| |||||||
| |||||||
1 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
2 | in the absence of proof of the
consideration paid by the | ||||||
3 | subcontractor for the purchase of such
property.
| ||||||
4 | "Department" means the Department of Revenue.
| ||||||
5 | "Person" means any natural individual, firm, partnership, | ||||||
6 | association, joint
stock company, joint venture, public or | ||||||
7 | private corporation, limited liability
company, and any | ||||||
8 | receiver, executor, trustee, guardian or other representative
| ||||||
9 | appointed by order of any court.
| ||||||
10 | "Sale of Service" means any transaction except:
| ||||||
11 | (a) A retail sale of tangible personal property taxable | ||||||
12 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
13 | Act.
| ||||||
14 | (b) A sale of tangible personal property for the purpose of | ||||||
15 | resale made in
compliance with Section 2c of the Retailers' | ||||||
16 | Occupation Tax Act.
| ||||||
17 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
18 | tangible personal
property as an incident to the rendering of | ||||||
19 | service for or by any governmental
body or for or by any | ||||||
20 | corporation, society, association, foundation or
institution | ||||||
21 | organized and operated exclusively for charitable, religious | ||||||
22 | or
educational purposes or any not-for-profit corporation, | ||||||
23 | society, association,
foundation, institution or organization | ||||||
24 | which has no compensated officers or
employees and which is | ||||||
25 | organized and operated primarily for the recreation of
persons | ||||||
26 | 55 years of age or older. A limited liability company may |
| |||||||
| |||||||
1 | qualify for
the exemption under this paragraph only if the | ||||||
2 | limited liability company is
organized and operated | ||||||
3 | exclusively for educational purposes.
| ||||||
4 | (d) (Blank).
| ||||||
5 | (d-1) A sale or transfer of tangible personal
property as | ||||||
6 | an incident to
the rendering of service for owners, lessors or | ||||||
7 | shippers of tangible personal
property which is utilized by | ||||||
8 | interstate carriers for hire for use as rolling
stock moving in | ||||||
9 | interstate commerce, and equipment operated
by a | ||||||
10 | telecommunications provider, licensed as a common carrier by | ||||||
11 | the
Federal Communications Commission, which is permanently | ||||||
12 | installed in or
affixed to aircraft moving in interstate | ||||||
13 | commerce.
| ||||||
14 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
15 | 2004, a sale or transfer of a motor vehicle
of the
second | ||||||
16 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
17 | as an
incident to the rendering of service if that motor
| ||||||
18 | vehicle is subject
to the commercial distribution fee imposed | ||||||
19 | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||||||
20 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
21 | State of motor vehicles of the second division: (i) with a | ||||||
22 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
23 | that are subject to the commercial distribution fee imposed | ||||||
24 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
25 | that are primarily used for commercial purposes. Through June | ||||||
26 | 30, 2005, this exemption applies to repair and replacement |
| |||||||
| |||||||
1 | parts added after the
initial
purchase of such a motor vehicle | ||||||
2 | if that motor vehicle is used in a manner that
would
qualify | ||||||
3 | for the rolling stock exemption otherwise provided for in this | ||||||
4 | Act. For purposes of this paragraph, "used for commercial | ||||||
5 | purposes" means the transportation of persons or property in | ||||||
6 | furtherance of any commercial or industrial enterprise whether | ||||||
7 | for-hire or not.
| ||||||
8 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
9 | common carrier by
rail, of tangible personal property which | ||||||
10 | belongs to such carrier for hire, and
as to which such carrier | ||||||
11 | receives the physical possession of the repaired,
| ||||||
12 | reconditioned or remodeled item of tangible personal property | ||||||
13 | in Illinois, and
which such carrier transports, or shares with | ||||||
14 | another common carrier in the
transportation of such property, | ||||||
15 | out of Illinois on a standard uniform bill of
lading showing | ||||||
16 | the person who repaired, reconditioned or remodeled the | ||||||
17 | property
as the shipper or consignor of such property to a | ||||||
18 | destination outside Illinois,
for use outside Illinois.
| ||||||
19 | (d-3) A sale or transfer of tangible personal property | ||||||
20 | which
is produced by the seller thereof on special order in | ||||||
21 | such a way as to have
made the applicable tax the Service | ||||||
22 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
23 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
24 | carrier by rail which receives the physical possession of such | ||||||
25 | property in
Illinois, and which transports such property, or | ||||||
26 | shares with another common
carrier in the transportation of |
| |||||||
| |||||||
1 | such property, out of Illinois on a standard
uniform bill of | ||||||
2 | lading showing the seller of the property as the shipper or
| ||||||
3 | consignor of such property to a destination outside Illinois, | ||||||
4 | for use outside
Illinois.
| ||||||
5 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
6 | serviceman paying tax
under this Act to the Department, of | ||||||
7 | special order printed materials delivered
outside Illinois and | ||||||
8 | which are not returned to this State, if delivery is made
by | ||||||
9 | the seller or agent of the seller, including an agent who | ||||||
10 | causes the product
to be delivered outside Illinois by a common | ||||||
11 | carrier or the U.S.
postal service.
| ||||||
12 | (e) A sale or transfer of machinery and equipment used | ||||||
13 | primarily in
the process of the manufacturing or assembling, | ||||||
14 | either in an existing, an
expanded or a new manufacturing | ||||||
15 | facility, of tangible personal property for
wholesale or retail | ||||||
16 | sale or lease, whether such sale or lease is made directly
by | ||||||
17 | the manufacturer or by some other person, whether the materials | ||||||
18 | used in the
process are owned by the manufacturer or some other | ||||||
19 | person, or whether such
sale or lease is made apart from or as | ||||||
20 | an incident to the seller's engaging in
a service occupation | ||||||
21 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
22 | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||||||
23 | exemption provided by this paragraph (e) does not include | ||||||
24 | machinery and equipment used in (i) the generation of | ||||||
25 | electricity for wholesale or retail sale; (ii) the generation | ||||||
26 | or treatment of natural or artificial gas for wholesale or |
| |||||||
| |||||||
1 | retail sale that is delivered to customers through pipes, | ||||||
2 | pipelines, or mains; or (iii) the treatment of water for | ||||||
3 | wholesale or retail sale that is delivered to customers through | ||||||
4 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
5 | are declaratory of existing law as to the meaning and scope of | ||||||
6 | this exemption. The exemption under this subsection (e) is | ||||||
7 | exempt from the provisions of Section 3-75.
| ||||||
8 | (f) Until July 1, 2003, the sale or transfer of | ||||||
9 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
10 | assembled or installed by the retailer, which machinery
and | ||||||
11 | equipment is certified by the user to be used only for the | ||||||
12 | production
of ethyl alcohol that will be used for consumption | ||||||
13 | as motor fuel or as a
component of motor fuel for the personal | ||||||
14 | use of such user and not subject
to sale or resale.
| ||||||
15 | (g) At the election of any serviceman not required to be | ||||||
16 | otherwise
registered as a retailer under Section 2a of the | ||||||
17 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
18 | of service in which the aggregate annual cost
price of tangible | ||||||
19 | personal property transferred as an incident to the sales of
| ||||||
20 | service is less than 35% (75% in the case of servicemen | ||||||
21 | transferring
prescription drugs or servicemen engaged in | ||||||
22 | graphic arts production) of the
aggregate annual total gross | ||||||
23 | receipts from all sales of service. The purchase
of such | ||||||
24 | tangible personal property by the serviceman shall be subject | ||||||
25 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
26 | Act.
However, if a
primary serviceman who has made the election |
| |||||||
| |||||||
1 | described in this paragraph
subcontracts service work to a | ||||||
2 | secondary serviceman who has also made the
election described | ||||||
3 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
4 | Tax liability if the secondary serviceman (i) has paid or will | ||||||
5 | pay
Use
Tax on his or her cost price of any tangible personal | ||||||
6 | property transferred
to the primary serviceman and (ii) | ||||||
7 | certifies that fact in writing to the
primary serviceman.
| ||||||
8 | Tangible personal property transferred incident to the | ||||||
9 | completion of a
maintenance agreement is exempt from the tax | ||||||
10 | imposed pursuant to this Act.
| ||||||
11 | Exemption (e) also includes machinery and equipment used in | ||||||
12 | the
general maintenance or repair of such exempt machinery and | ||||||
13 | equipment or for
in-house manufacture of exempt machinery and | ||||||
14 | equipment.
On and after July 1, 2017, exemption (e) also
| ||||||
15 | includes graphic arts machinery and equipment, as
defined in | ||||||
16 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
17 | exemption does not include machinery and equipment used in (i) | ||||||
18 | the generation of electricity for wholesale or retail sale; | ||||||
19 | (ii) the generation or treatment of natural or artificial gas | ||||||
20 | for wholesale or retail sale that is delivered to customers | ||||||
21 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
22 | water for wholesale or retail sale that is delivered to | ||||||
23 | customers through pipes, pipelines, or mains. The provisions of | ||||||
24 | Public Act 98-583 are declaratory of existing law as to the | ||||||
25 | meaning and scope of this exemption. For the purposes of | ||||||
26 | exemption (e), each of these terms shall have the following
|
| |||||||
| |||||||
1 | meanings: (1) "manufacturing process" shall mean the | ||||||
2 | production of any
article of tangible personal property, | ||||||
3 | whether such article is a
finished product or an article for | ||||||
4 | use in the process of manufacturing
or assembling a different | ||||||
5 | article of tangible personal property, by
procedures commonly | ||||||
6 | regarded as manufacturing, processing, fabricating,
or | ||||||
7 | refining which changes some existing material or materials into | ||||||
8 | a
material with a different form, use or name. In relation to a
| ||||||
9 | recognized integrated business composed of a series of | ||||||
10 | operations which
collectively constitute manufacturing, or | ||||||
11 | individually constitute
manufacturing operations, the | ||||||
12 | manufacturing process shall be deemed to
commence with the | ||||||
13 | first operation or stage of production in the series,
and shall | ||||||
14 | not be deemed to end until the completion of the final product
| ||||||
15 | in the last operation or stage of production in the series; and | ||||||
16 | further for
purposes of exemption (e), photoprocessing is | ||||||
17 | deemed to be a manufacturing
process of tangible personal | ||||||
18 | property for wholesale or retail sale;
(2) "assembling process" | ||||||
19 | shall mean the production of any article of
tangible personal | ||||||
20 | property, whether such article is a finished product
or an | ||||||
21 | article for use in the process of manufacturing or assembling a
| ||||||
22 | different article of tangible personal property, by the | ||||||
23 | combination of
existing materials in a manner commonly regarded | ||||||
24 | as assembling which
results in a material of a different form, | ||||||
25 | use or name; (3) "machinery"
shall mean major mechanical | ||||||
26 | machines or major components of such machines
contributing to a |
| |||||||
| |||||||
1 | manufacturing or assembling process; and (4) "equipment"
shall | ||||||
2 | include any independent device or tool separate from any | ||||||
3 | machinery but
essential to an integrated manufacturing or | ||||||
4 | assembly process; including
computers used primarily in a | ||||||
5 | manufacturer's computer
assisted design, computer assisted | ||||||
6 | manufacturing (CAD/CAM) system; or any
subunit or assembly | ||||||
7 | comprising a component of any machinery or auxiliary,
adjunct | ||||||
8 | or attachment parts of machinery, such as tools, dies, jigs, | ||||||
9 | fixtures,
patterns and molds; or any parts which require | ||||||
10 | periodic replacement in the
course of normal operation; but | ||||||
11 | shall not include hand tools. Equipment
includes chemicals or | ||||||
12 | chemicals acting as catalysts but only if the chemicals
or | ||||||
13 | chemicals acting as catalysts effect a direct and immediate | ||||||
14 | change upon a
product being manufactured or assembled for | ||||||
15 | wholesale or retail sale or lease.
The purchaser of such | ||||||
16 | machinery and equipment
who has an active resale registration | ||||||
17 | number shall furnish such number to
the seller at the time of | ||||||
18 | purchase. The purchaser of such machinery and
equipment and | ||||||
19 | tools without an active resale registration number shall | ||||||
20 | furnish
to the seller a certificate of exemption for each | ||||||
21 | transaction stating facts
establishing the exemption for that | ||||||
22 | transaction, which certificate shall
be available to the | ||||||
23 | Department for inspection or audit.
| ||||||
24 | Except as provided in Section 2d of this Act, the rolling | ||||||
25 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
26 | carrier for hire, even just between points in Illinois, if such |
| |||||||
| |||||||
1 | rolling
stock transports, for hire, persons whose journeys or | ||||||
2 | property whose
shipments originate or terminate outside | ||||||
3 | Illinois.
| ||||||
4 | Any informal rulings, opinions or letters issued by the | ||||||
5 | Department in
response to an inquiry or request for any opinion | ||||||
6 | from any person
regarding the coverage and applicability of | ||||||
7 | exemption (e) to specific
devices shall be published, | ||||||
8 | maintained as a public record, and made
available for public | ||||||
9 | inspection and copying. If the informal ruling,
opinion or | ||||||
10 | letter contains trade secrets or other confidential
| ||||||
11 | information, where possible the Department shall delete such | ||||||
12 | information
prior to publication. Whenever such informal | ||||||
13 | rulings, opinions, or
letters contain any policy of general | ||||||
14 | applicability, the Department
shall formulate and adopt such | ||||||
15 | policy as a rule in accordance with the
provisions of the | ||||||
16 | Illinois Administrative Procedure Act.
| ||||||
17 | On and after July 1, 1987, no entity otherwise eligible | ||||||
18 | under exemption
(c) of this Section shall make tax-free | ||||||
19 | purchases unless it has an active
exemption identification | ||||||
20 | number issued by the Department.
| ||||||
21 | "Serviceman" means any person who is engaged in the | ||||||
22 | occupation of
making sales of service.
| ||||||
23 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
24 | Retailers'
Occupation Tax Act.
| ||||||
25 | "Supplier" means any person who makes sales of tangible | ||||||
26 | personal
property to servicemen for the purpose of resale as an |
| |||||||
| |||||||
1 | incident to a
sale of service.
| ||||||
2 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
3 | 100-863, eff. 8-14-18.)
| ||||||
4 | (35 ILCS 115/3-5)
| ||||||
5 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
6 | property is
exempt from the tax imposed by this Act:
| ||||||
7 | (1) Personal property sold by a corporation, society, | ||||||
8 | association,
foundation, institution, or organization, other | ||||||
9 | than a limited liability
company, that is organized and | ||||||
10 | operated as a not-for-profit service enterprise
for the benefit | ||||||
11 | of persons 65 years of age or older if the personal property
| ||||||
12 | was not purchased by the enterprise for the purpose of resale | ||||||
13 | by the
enterprise.
| ||||||
14 | (2) Personal property purchased by a not-for-profit | ||||||
15 | Illinois county fair
association for use in conducting, | ||||||
16 | operating, or promoting the county fair.
| ||||||
17 | (3) Personal property purchased by any not-for-profit
arts | ||||||
18 | or cultural organization that establishes, by proof required by | ||||||
19 | the
Department by
rule, that it has received an exemption under | ||||||
20 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
21 | organized and operated primarily for the
presentation
or | ||||||
22 | support of arts or cultural programming, activities, or | ||||||
23 | services. These
organizations include, but are not limited to, | ||||||
24 | music and dramatic arts
organizations such as symphony | ||||||
25 | orchestras and theatrical groups, arts and
cultural service |
| |||||||
| |||||||
1 | organizations, local arts councils, visual arts organizations,
| ||||||
2 | and media arts organizations.
On and after July 1, 2001 ( the | ||||||
3 | effective date of Public Act 92-35) this amendatory Act of the | ||||||
4 | 92nd General
Assembly , however, an entity otherwise eligible | ||||||
5 | for this exemption shall not
make tax-free purchases unless it | ||||||
6 | has an active identification number issued by
the Department.
| ||||||
7 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
8 | coinage
issued by the State of Illinois, the government of the | ||||||
9 | United States of
America, or the government of any foreign | ||||||
10 | country, and bullion.
| ||||||
11 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
12 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
13 | equipment, including
repair and
replacement parts, both new and | ||||||
14 | used, and including that manufactured on
special order or | ||||||
15 | purchased for lease, certified by the purchaser to be used
| ||||||
16 | primarily for graphic arts production.
Equipment includes | ||||||
17 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
18 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
19 | immediate change
upon a graphic arts product. Beginning on July | ||||||
20 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
21 | the manufacturing and assembling machinery and equipment | ||||||
22 | exemption under Section 2 of this Act.
| ||||||
23 | (6) Personal property sold by a teacher-sponsored student | ||||||
24 | organization
affiliated with an elementary or secondary school | ||||||
25 | located in Illinois.
| ||||||
26 | (7) Farm machinery and equipment, both new and used, |
| |||||||
| |||||||
1 | including that
manufactured on special order, certified by the | ||||||
2 | purchaser to be used
primarily for production agriculture or | ||||||
3 | State or federal agricultural
programs, including individual | ||||||
4 | replacement parts for the machinery and
equipment, including | ||||||
5 | machinery and equipment purchased for lease,
and including | ||||||
6 | implements of husbandry defined in Section 1-130 of
the | ||||||
7 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
8 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
9 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
10 | but
excluding other motor vehicles required to be registered | ||||||
11 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
12 | hoop houses used for propagating, growing, or
overwintering | ||||||
13 | plants shall be considered farm machinery and equipment under
| ||||||
14 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
15 | shall include units sold
separately from a motor vehicle | ||||||
16 | required to be licensed and units sold mounted
on a motor | ||||||
17 | vehicle required to be licensed if the selling price of the | ||||||
18 | tender
is separately stated.
| ||||||
19 | Farm machinery and equipment shall include precision | ||||||
20 | farming equipment
that is
installed or purchased to be | ||||||
21 | installed on farm machinery and equipment
including, but not | ||||||
22 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
23 | or spreaders.
Precision farming equipment includes, but is not | ||||||
24 | limited to,
soil testing sensors, computers, monitors, | ||||||
25 | software, global positioning
and mapping systems, and other | ||||||
26 | such equipment.
|
| |||||||
| |||||||
1 | Farm machinery and equipment also includes computers, | ||||||
2 | sensors, software, and
related equipment used primarily in the
| ||||||
3 | computer-assisted operation of production agriculture | ||||||
4 | facilities, equipment,
and activities such as, but
not limited | ||||||
5 | to,
the collection, monitoring, and correlation of
animal and | ||||||
6 | crop data for the purpose of
formulating animal diets and | ||||||
7 | agricultural chemicals. This item (7) is exempt
from the | ||||||
8 | provisions of
Section 3-55.
| ||||||
9 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
10 | to or used by an air common
carrier, certified by the carrier | ||||||
11 | to be used for consumption, shipment,
or storage in the conduct | ||||||
12 | of its business as an air common carrier, for
a flight destined | ||||||
13 | for or returning from a location or locations
outside the | ||||||
14 | United States without regard to previous or subsequent domestic
| ||||||
15 | stopovers.
| ||||||
16 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
17 | or used by an air carrier, certified by the carrier to be used | ||||||
18 | for consumption, shipment, or storage in the conduct of its | ||||||
19 | business as an air common carrier, for a flight that (i) is | ||||||
20 | engaged in foreign trade or is engaged in trade between the | ||||||
21 | United States and any of its possessions and (ii) transports at | ||||||
22 | least one individual or package for hire from the city of | ||||||
23 | origination to the city of final destination on the same | ||||||
24 | aircraft, without regard to a change in the flight number of | ||||||
25 | that aircraft. | ||||||
26 | (9) Proceeds of mandatory service charges separately
|
| |||||||
| |||||||
1 | stated on customers' bills for the purchase and consumption of | ||||||
2 | food and
beverages, to the extent that the proceeds of the | ||||||
3 | service charge are in fact
turned over as tips or as a | ||||||
4 | substitute for tips to the employees who
participate directly | ||||||
5 | in preparing, serving, hosting or cleaning up the
food or | ||||||
6 | beverage function with respect to which the service charge is | ||||||
7 | imposed.
| ||||||
8 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
9 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
10 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
11 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
12 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
13 | individual replacement part for oil field exploration,
| ||||||
14 | drilling, and production equipment, and (vi) machinery and | ||||||
15 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
16 | required to be registered under the Illinois
Vehicle Code.
| ||||||
17 | (11) Photoprocessing machinery and equipment, including | ||||||
18 | repair and
replacement parts, both new and used, including that | ||||||
19 | manufactured on
special order, certified by the purchaser to be | ||||||
20 | used primarily for
photoprocessing, and including | ||||||
21 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
22 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
23 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
24 | reclamation equipment, including
replacement parts and | ||||||
25 | equipment, and including
equipment
purchased for lease, but | ||||||
26 | excluding motor vehicles required to be registered
under the |
| |||||||
| |||||||
1 | Illinois Vehicle Code. The changes made to this Section by | ||||||
2 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
3 | for credit or refund is allowed on or after August 16, 2013 | ||||||
4 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
5 | during the period beginning July 1, 2003 and ending on August | ||||||
6 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
7 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
8 | food for human consumption that is to be consumed off the | ||||||
9 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
10 | drinks and food that
has been prepared for immediate | ||||||
11 | consumption) and prescription and
non-prescription medicines, | ||||||
12 | drugs, medical appliances, and insulin, urine
testing | ||||||
13 | materials, syringes, and needles used by diabetics, for human | ||||||
14 | use,
when purchased for use by a person receiving medical | ||||||
15 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
16 | resides in a licensed
long-term care facility, as defined in | ||||||
17 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
18 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
19 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
20 | (14) Semen used for artificial insemination of livestock | ||||||
21 | for direct
agricultural production.
| ||||||
22 | (15) Horses, or interests in horses, registered with and | ||||||
23 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
24 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
25 | Horse Association, United States
Trotting Association, or | ||||||
26 | Jockey Club, as appropriate, used for
purposes of breeding or |
| |||||||
| |||||||
1 | racing for prizes. This item (15) is exempt from the provisions | ||||||
2 | of Section 3-55, and the exemption provided for under this item | ||||||
3 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
4 | claim for credit or refund is allowed on or after January 1, | ||||||
5 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
6 | paid during the period beginning May 30, 2000 and ending on | ||||||
7 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
8 | (16) Computers and communications equipment utilized for | ||||||
9 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
10 | analysis, or treatment of hospital patients sold to a lessor | ||||||
11 | who leases the
equipment, under a lease of one year or longer | ||||||
12 | executed or in effect at the
time of the purchase, to a
| ||||||
13 | hospital
that has been issued an active tax exemption | ||||||
14 | identification number by the
Department under Section 1g of the | ||||||
15 | Retailers' Occupation Tax Act.
| ||||||
16 | (17) Personal property sold to a lessor who leases the
| ||||||
17 | property, under a
lease of one year or longer executed or in | ||||||
18 | effect at the time of the purchase,
to a governmental body
that | ||||||
19 | has been issued an active tax exemption identification number | ||||||
20 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
21 | Tax Act.
| ||||||
22 | (18) Beginning with taxable years ending on or after | ||||||
23 | December
31, 1995
and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004,
personal property that is
donated for | ||||||
25 | disaster relief to be used in a State or federally declared
| ||||||
26 | disaster area in Illinois or bordering Illinois by a |
| |||||||
| |||||||
1 | manufacturer or retailer
that is registered in this State to a | ||||||
2 | corporation, society, association,
foundation, or institution | ||||||
3 | that has been issued a sales tax exemption
identification | ||||||
4 | number by the Department that assists victims of the disaster
| ||||||
5 | who reside within the declared disaster area.
| ||||||
6 | (19) Beginning with taxable years ending on or after | ||||||
7 | December
31, 1995 and
ending with taxable years ending on or | ||||||
8 | before December 31, 2004, personal
property that is used in the | ||||||
9 | performance of infrastructure repairs in this
State, including | ||||||
10 | but not limited to municipal roads and streets, access roads,
| ||||||
11 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
12 | line extensions,
water distribution and purification | ||||||
13 | facilities, storm water drainage and
retention facilities, and | ||||||
14 | sewage treatment facilities, resulting from a State
or | ||||||
15 | federally declared disaster in Illinois or bordering Illinois | ||||||
16 | when such
repairs are initiated on facilities located in the | ||||||
17 | declared disaster area
within 6 months after the disaster.
| ||||||
18 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
19 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
20 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
21 | provisions
of
Section 3-55.
| ||||||
22 | (21) A motor vehicle, as that term is defined in Section | ||||||
23 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
24 | corporation, limited liability
company, society, association, | ||||||
25 | foundation, or institution that is determined by
the Department | ||||||
26 | to be organized and operated exclusively for educational
|
| |||||||
| |||||||
1 | purposes. For purposes of this exemption, "a corporation, | ||||||
2 | limited liability
company, society, association, foundation, | ||||||
3 | or institution organized and
operated
exclusively for | ||||||
4 | educational purposes" means all tax-supported public schools,
| ||||||
5 | private schools that offer systematic instruction in useful | ||||||
6 | branches of
learning by methods common to public schools and | ||||||
7 | that compare favorably in
their scope and intensity with the | ||||||
8 | course of study presented in tax-supported
schools, and | ||||||
9 | vocational or technical schools or institutes organized and
| ||||||
10 | operated exclusively to provide a course of study of not less | ||||||
11 | than 6 weeks
duration and designed to prepare individuals to | ||||||
12 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
13 | industrial, business, or commercial
occupation.
| ||||||
14 | (22) Beginning January 1, 2000, personal property, | ||||||
15 | including
food,
purchased through fundraising
events for the | ||||||
16 | benefit of
a public or private elementary or
secondary school, | ||||||
17 | a group of those schools, or one or more school
districts if | ||||||
18 | the events are
sponsored by an entity recognized by the school | ||||||
19 | district that consists
primarily of volunteers and includes
| ||||||
20 | parents and teachers of the school children. This paragraph | ||||||
21 | does not apply
to fundraising
events (i) for the benefit of | ||||||
22 | private home instruction or (ii)
for which the fundraising | ||||||
23 | entity purchases the personal property sold at
the events from | ||||||
24 | another individual or entity that sold the property for the
| ||||||
25 | purpose of resale by the fundraising entity and that
profits | ||||||
26 | from the sale to the
fundraising entity. This paragraph is |
| |||||||
| |||||||
1 | exempt
from the provisions
of Section 3-55.
| ||||||
2 | (23) Beginning January 1, 2000
and through December 31, | ||||||
3 | 2001, new or used automatic vending
machines that prepare and | ||||||
4 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
5 | items, and replacement parts for these machines.
Beginning | ||||||
6 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
7 | for
machines used in commercial, coin-operated amusement
and | ||||||
8 | vending business if a use or occupation tax is paid on the | ||||||
9 | gross receipts
derived from
the use of the commercial, | ||||||
10 | coin-operated amusement and vending machines.
This paragraph | ||||||
11 | is exempt from the provisions of Section 3-55.
| ||||||
12 | (24) Beginning
on August 2, 2001 ( the effective date of | ||||||
13 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
14 | Assembly ,
computers and communications equipment
utilized for | ||||||
15 | any hospital purpose and equipment used in the diagnosis,
| ||||||
16 | analysis, or treatment of hospital patients sold to a lessor | ||||||
17 | who leases the
equipment, under a lease of one year or longer | ||||||
18 | executed or in effect at the
time of the purchase, to a | ||||||
19 | hospital that has been issued an active tax
exemption | ||||||
20 | identification number by the Department under Section 1g of the
| ||||||
21 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
22 | the provisions of
Section 3-55.
| ||||||
23 | (25) Beginning
on August 2, 2001 ( the effective date of | ||||||
24 | Public Act 92-227) this amendatory Act of the 92nd General | ||||||
25 | Assembly ,
personal property sold to a lessor who
leases the | ||||||
26 | property, under a lease of one year or longer executed or in |
| |||||||
| |||||||
1 | effect
at the time of the purchase, to a governmental body that | ||||||
2 | has been issued an
active tax exemption identification number | ||||||
3 | by the Department under Section 1g
of the Retailers' Occupation | ||||||
4 | Tax Act. This paragraph is exempt from the
provisions of | ||||||
5 | Section 3-55.
| ||||||
6 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
7 | 2016, tangible personal property
purchased
from an Illinois | ||||||
8 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
9 | activities in Illinois who will, upon receipt of the property | ||||||
10 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
11 | the purpose of subsequently
transporting it outside this State | ||||||
12 | for use or consumption thereafter solely
outside this State or | ||||||
13 | (ii) for the purpose of being processed, fabricated, or
| ||||||
14 | manufactured into, attached to, or incorporated into other | ||||||
15 | tangible personal
property to be transported outside this State | ||||||
16 | and thereafter used or consumed
solely outside this State. The | ||||||
17 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
18 | accordance with the Illinois Administrative Procedure Act, | ||||||
19 | issue a
permit to any taxpayer in good standing with the | ||||||
20 | Department who is eligible for
the exemption under this | ||||||
21 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
22 | shall authorize the holder, to the extent and
in the manner | ||||||
23 | specified in the rules adopted under this Act, to purchase
| ||||||
24 | tangible personal property from a retailer exempt from the | ||||||
25 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
26 | necessary books and records to
substantiate the use and |
| |||||||
| |||||||
1 | consumption of all such tangible personal property
outside of | ||||||
2 | the State of Illinois.
| ||||||
3 | (27) Beginning January 1, 2008, tangible personal property | ||||||
4 | used in the construction or maintenance of a community water | ||||||
5 | supply, as defined under Section 3.145 of the Environmental | ||||||
6 | Protection Act, that is operated by a not-for-profit | ||||||
7 | corporation that holds a valid water supply permit issued under | ||||||
8 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
9 | exempt from the provisions of Section 3-55.
| ||||||
10 | (28) Tangible personal property sold to a | ||||||
11 | public-facilities corporation, as described in Section | ||||||
12 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
13 | constructing or furnishing a municipal convention hall, but | ||||||
14 | only if the legal title to the municipal convention hall is | ||||||
15 | transferred to the municipality without any further | ||||||
16 | consideration by or on behalf of the municipality at the time | ||||||
17 | of the completion of the municipal convention hall or upon the | ||||||
18 | retirement or redemption of any bonds or other debt instruments | ||||||
19 | issued by the public-facilities corporation in connection with | ||||||
20 | the development of the municipal convention hall. This | ||||||
21 | exemption includes existing public-facilities corporations as | ||||||
22 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
23 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
24 | (29) Beginning January 1, 2010, materials, parts, | ||||||
25 | equipment, components, and furnishings incorporated into or | ||||||
26 | upon an aircraft as part of the modification, refurbishment, |
| |||||||
| |||||||
1 | completion, replacement, repair, or maintenance of the | ||||||
2 | aircraft. This exemption includes consumable supplies used in | ||||||
3 | the modification, refurbishment, completion, replacement, | ||||||
4 | repair, and maintenance of aircraft, but excludes any | ||||||
5 | materials, parts, equipment, components, and consumable | ||||||
6 | supplies used in the modification, replacement, repair, and | ||||||
7 | maintenance of aircraft engines or power plants, whether such | ||||||
8 | engines or power plants are installed or uninstalled upon any | ||||||
9 | such aircraft. "Consumable supplies" include, but are not | ||||||
10 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
11 | lubricants, cleaning solution, latex gloves, and protective | ||||||
12 | films. This exemption applies only to the transfer of | ||||||
13 | qualifying tangible personal property incident to the | ||||||
14 | modification, refurbishment, completion, replacement, repair, | ||||||
15 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
16 | Agency Certificate and are empowered to operate an approved | ||||||
17 | repair station by the Federal Aviation Administration, (ii) | ||||||
18 | have a Class IV Rating, and (iii) conduct operations in | ||||||
19 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
20 | The exemption does not include aircraft operated by a | ||||||
21 | commercial air carrier providing scheduled passenger air | ||||||
22 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
23 | of the Federal Aviation Regulations. The changes made to this | ||||||
24 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
25 | law. | ||||||
26 | (30) Beginning January 1, 2017, menstrual pads, tampons, |
| |||||||
| |||||||
1 | and menstrual cups. | ||||||
2 | (31) Tangible personal property transferred to a purchaser | ||||||
3 | who is exempt from tax by operation of federal law. This | ||||||
4 | paragraph is exempt from the provisions of Section 3-55. | ||||||
5 | (32) Until December 31, 2023, equipment and materials | ||||||
6 | incorporated into or used in the business of providing | ||||||
7 | broadband services, including all equipment and materials, | ||||||
8 | machinery, software, or other tangible personal property that | ||||||
9 | is used in whole or in part in producing, broadcasting, | ||||||
10 | distributing, sending, receiving, storing, transmitting, | ||||||
11 | retransmitting, amplifying, switching, or routing broadband | ||||||
12 | services, including the monitoring, testing, maintaining, | ||||||
13 | enabling, or facilitating of such equipment, machinery, | ||||||
14 | software, or other infrastructure. Such property includes, but | ||||||
15 | is not limited to, wires, cables including fiber optic cables, | ||||||
16 | antennas, poles, switches, routers, amplifiers, rectifiers, | ||||||
17 | repeaters, receivers, multiplexers, duplexers, transmitters, | ||||||
18 | power equipment, backup power equipment, diagnostic equipment, | ||||||
19 | storage devices, modems, and other general central office | ||||||
20 | equipment, such as channel cards, frames, and cabinets. | ||||||
21 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
22 | 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff. | ||||||
23 | 1-4-19; revised 1-8-19.)
| ||||||
24 | Section 25. The Retailers' Occupation Tax Act is amended by | ||||||
25 | changing Sections 1 and 2-5 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 120/1) (from Ch. 120, par. 440)
| ||||||
2 | Sec. 1. Definitions. As used in this Act: | ||||||
3 | "Broadband service" means a service provided by wireline or | ||||||
4 | wireless means capable of delivering high-speed internet | ||||||
5 | access at speeds of at least 10 megabits per second of download | ||||||
6 | speed and one megabit per second of upload speed. | ||||||
7 | "Sale at retail" means any transfer of the
ownership of or | ||||||
8 | title to
tangible personal property to a purchaser, for the | ||||||
9 | purpose of use or
consumption, and not for the purpose of | ||||||
10 | resale in any form as tangible
personal property to the extent | ||||||
11 | not first subjected to a use for which it
was purchased, for a | ||||||
12 | valuable consideration: Provided that the property
purchased | ||||||
13 | is deemed to be purchased for the purpose of resale, despite
| ||||||
14 | first being used, to the extent to which it is resold as an | ||||||
15 | ingredient of
an intentionally produced product or byproduct of | ||||||
16 | manufacturing. For this
purpose, slag produced as an incident | ||||||
17 | to manufacturing pig iron or steel
and sold is considered to be | ||||||
18 | an intentionally produced byproduct of
manufacturing. | ||||||
19 | Transactions whereby the possession of the property is
| ||||||
20 | transferred but the seller retains the title as security for | ||||||
21 | payment of the
selling price shall be deemed to be sales.
| ||||||
22 | "Sale at retail" shall be construed to include any transfer | ||||||
23 | of the
ownership of or title to tangible personal property to a | ||||||
24 | purchaser, for use
or consumption by any other person to whom | ||||||
25 | such purchaser may transfer the
tangible personal property |
| |||||||
| |||||||
1 | without a valuable consideration, and to include
any transfer, | ||||||
2 | whether made for or without a valuable consideration, for
| ||||||
3 | resale in any form as tangible personal property unless made in | ||||||
4 | compliance
with Section 2c of this Act.
| ||||||
5 | Sales of tangible personal property, which property, to the | ||||||
6 | extent not
first subjected to a use for which it was purchased, | ||||||
7 | as an ingredient or
constituent, goes into and forms a part of | ||||||
8 | tangible personal property
subsequently the subject of a "Sale | ||||||
9 | at retail", are not sales at retail as
defined in this Act: | ||||||
10 | Provided that the property purchased is deemed to be
purchased | ||||||
11 | for the purpose of resale, despite first being used, to the
| ||||||
12 | extent to which it is resold as an ingredient of an | ||||||
13 | intentionally produced
product or byproduct of manufacturing.
| ||||||
14 | "Sale at retail" shall be construed to include any Illinois | ||||||
15 | florist's
sales transaction in which the purchase order is | ||||||
16 | received in Illinois by a
florist and the sale is for use or | ||||||
17 | consumption, but the Illinois florist
has a florist in another | ||||||
18 | state deliver the property to the purchaser or the
purchaser's | ||||||
19 | donee in such other state.
| ||||||
20 | Nonreusable tangible personal property that is used by | ||||||
21 | persons engaged in
the business of operating a restaurant, | ||||||
22 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
23 | transferred to customers in the ordinary course of business
as | ||||||
24 | part of the sale of food or beverages and is used to deliver, | ||||||
25 | package, or
consume food or beverages, regardless of where | ||||||
26 | consumption of the food or
beverages occurs. Examples of those |
| |||||||
| |||||||
1 | items include, but are not limited to
nonreusable, paper and | ||||||
2 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
3 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
4 | and
wrapping or packaging
materials that are transferred to | ||||||
5 | customers as part of the sale of food or
beverages in the | ||||||
6 | ordinary course of business.
| ||||||
7 | The purchase, employment and transfer of such tangible | ||||||
8 | personal property
as newsprint and ink for the primary purpose | ||||||
9 | of conveying news (with or
without other information) is not a | ||||||
10 | purchase, use or sale of tangible
personal property.
| ||||||
11 | A person whose activities are organized and conducted | ||||||
12 | primarily as a
not-for-profit service enterprise, and who | ||||||
13 | engages in selling tangible
personal property at retail | ||||||
14 | (whether to the public or merely to members and
their guests) | ||||||
15 | is engaged in the business of selling tangible personal
| ||||||
16 | property at retail with respect to such transactions, excepting | ||||||
17 | only a
person organized and operated exclusively for | ||||||
18 | charitable, religious or
educational purposes either (1), to | ||||||
19 | the extent of sales by such person to
its members, students, | ||||||
20 | patients or inmates of tangible personal property to
be used | ||||||
21 | primarily for the purposes of such person, or (2), to the | ||||||
22 | extent of
sales by such person of tangible personal property | ||||||
23 | which is not sold or
offered for sale by persons organized for | ||||||
24 | profit. The selling of school
books and school supplies by | ||||||
25 | schools at retail to students is not
"primarily for the | ||||||
26 | purposes of" the school which does such selling. The
provisions |
| |||||||
| |||||||
1 | of this paragraph shall not apply to nor subject to taxation
| ||||||
2 | occasional dinners, socials or similar activities of a person | ||||||
3 | organized and
operated exclusively for charitable, religious | ||||||
4 | or educational purposes,
whether or not such activities are | ||||||
5 | open to the public.
| ||||||
6 | A person who is the recipient of a grant or contract under | ||||||
7 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
8 | serves meals to
participants in the federal Nutrition Program | ||||||
9 | for the Elderly in return for
contributions established in | ||||||
10 | amount by the individual participant pursuant
to a schedule of | ||||||
11 | suggested fees as provided for in the federal Act is not
| ||||||
12 | engaged in the business of selling tangible personal property | ||||||
13 | at retail
with respect to such transactions.
| ||||||
14 | "Purchaser" means anyone who, through a sale at retail, | ||||||
15 | acquires the
ownership of or title to tangible personal | ||||||
16 | property for a valuable
consideration.
| ||||||
17 | "Reseller of motor fuel" means any person engaged in the | ||||||
18 | business of selling
or delivering or transferring title of | ||||||
19 | motor fuel to another person
other than for use or consumption.
| ||||||
20 | No person shall act as a reseller of motor fuel within this | ||||||
21 | State without
first being registered as a reseller pursuant to | ||||||
22 | Section 2c or a retailer
pursuant to Section 2a.
| ||||||
23 | "Selling price" or the "amount of sale" means the | ||||||
24 | consideration for a
sale valued in money whether received in | ||||||
25 | money or otherwise, including
cash, credits, property, other | ||||||
26 | than as hereinafter provided, and services,
but not including |
| |||||||
| |||||||
1 | the value of or credit given for traded-in tangible
personal | ||||||
2 | property where the item that is traded-in is of like kind and
| ||||||
3 | character as that which is being sold, and shall be determined | ||||||
4 | without any
deduction on account of the cost of the property | ||||||
5 | sold, the cost of
materials used, labor or service cost or any | ||||||
6 | other expense whatsoever, but
does not include charges that are | ||||||
7 | added to prices by sellers on account of
the seller's tax | ||||||
8 | liability under this Act, or on account of the seller's
duty to | ||||||
9 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
10 | Tax
Act, or, except as otherwise provided with respect to any | ||||||
11 | cigarette tax imposed by a home rule unit, on account of the | ||||||
12 | seller's tax liability under any local occupation tax | ||||||
13 | administered by the Department, or, except as otherwise | ||||||
14 | provided with respect to any cigarette tax imposed by a home | ||||||
15 | rule unit on account of the seller's duty to collect, from the | ||||||
16 | purchasers, the tax that is imposed under any local use tax | ||||||
17 | administered by the Department.
Effective December 1, 1985, | ||||||
18 | "selling price" shall include charges that
are added to prices | ||||||
19 | by sellers on account of the seller's
tax liability under the | ||||||
20 | Cigarette Tax Act, on account of the sellers'
duty to collect, | ||||||
21 | from the purchaser, the tax imposed under the Cigarette
Use Tax | ||||||
22 | Act, and on account of the seller's duty to collect, from the
| ||||||
23 | purchaser, any cigarette tax imposed by a home rule unit.
| ||||||
24 | Notwithstanding any law to the contrary, for any motor | ||||||
25 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
26 | is sold on or after January 1, 2015 for the purpose of leasing |
| |||||||
| |||||||
1 | the vehicle for a defined period that is longer than one year | ||||||
2 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
3 | a self-contained motor vehicle designed or permanently | ||||||
4 | converted to provide living quarters for recreational, | ||||||
5 | camping, or travel use, with direct walk through access to the | ||||||
6 | living quarters from the driver's seat; (B) is of the van | ||||||
7 | configuration designed for the transportation of not less than | ||||||
8 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
9 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
10 | of the first division, "selling price" or "amount of sale" | ||||||
11 | means the consideration received by the lessor pursuant to the | ||||||
12 | lease contract, including amounts due at lease signing and all | ||||||
13 | monthly or other regular payments charged over the term of the | ||||||
14 | lease. Also included in the selling price is any amount | ||||||
15 | received by the lessor from the lessee for the leased vehicle | ||||||
16 | that is not calculated at the time the lease is executed, | ||||||
17 | including, but not limited to, excess mileage charges and | ||||||
18 | charges for excess wear and tear. For sales that occur in | ||||||
19 | Illinois, with respect to any amount received by the lessor | ||||||
20 | from the lessee for the leased vehicle that is not calculated | ||||||
21 | at the time the lease is executed, the lessor who purchased the | ||||||
22 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
23 | on those amounts, and the retailer who makes the retail sale of | ||||||
24 | the motor vehicle to the lessor is not required to collect the | ||||||
25 | tax imposed by the Use Tax Act or to pay the tax imposed by this | ||||||
26 | Act on those amounts. However, the lessor who purchased the |
| |||||||
| |||||||
1 | motor vehicle assumes the liability for reporting and paying | ||||||
2 | the tax on those amounts directly to the Department in the same | ||||||
3 | form (Illinois Retailers' Occupation Tax, and local retailers' | ||||||
4 | occupation taxes, if applicable) in which the retailer would | ||||||
5 | have reported and paid such tax if the retailer had accounted | ||||||
6 | for the tax to the Department. For amounts received by the | ||||||
7 | lessor from the lessee that are not calculated at the time the | ||||||
8 | lease is executed, the lessor must file the return and pay the | ||||||
9 | tax to the Department by the due date otherwise required by | ||||||
10 | this Act for returns other than transaction returns. If the | ||||||
11 | retailer is entitled under this Act to a discount for | ||||||
12 | collecting and remitting the tax imposed under this Act to the | ||||||
13 | Department with respect to the sale of the motor vehicle to the | ||||||
14 | lessor, then the right to the discount provided in this Act | ||||||
15 | shall be transferred to the lessor with respect to the tax paid | ||||||
16 | by the lessor for any amount received by the lessor from the | ||||||
17 | lessee for the leased vehicle that is not calculated at the | ||||||
18 | time the lease is executed; provided that the discount is only | ||||||
19 | allowed if the return is timely filed and for amounts timely | ||||||
20 | paid. The "selling price" of a motor vehicle that is sold on or | ||||||
21 | after January 1, 2015 for the purpose of leasing for a defined | ||||||
22 | period of longer than one year shall not be reduced by the | ||||||
23 | value of or credit given for traded-in tangible personal | ||||||
24 | property owned by the lessor, nor shall it be reduced by the | ||||||
25 | value of or credit given for traded-in tangible personal | ||||||
26 | property owned by the lessee, regardless of whether the |
| |||||||
| |||||||
1 | trade-in value thereof is assigned by the lessee to the lessor. | ||||||
2 | In the case of a motor vehicle that is sold for the purpose of | ||||||
3 | leasing for a defined period of longer than one year, the sale | ||||||
4 | occurs at the time of the delivery of the vehicle, regardless | ||||||
5 | of the due date of any lease payments. A lessor who incurs a | ||||||
6 | Retailers' Occupation Tax liability on the sale of a motor | ||||||
7 | vehicle coming off lease may not take a credit against that | ||||||
8 | liability for the Use Tax the lessor paid upon the purchase of | ||||||
9 | the motor vehicle (or for any tax the lessor paid with respect | ||||||
10 | to any amount received by the lessor from the lessee for the | ||||||
11 | leased vehicle that was not calculated at the time the lease | ||||||
12 | was executed) if the selling price of the motor vehicle at the | ||||||
13 | time of purchase was calculated using the definition of | ||||||
14 | "selling price" as defined in this paragraph.
Notwithstanding | ||||||
15 | any other provision of this Act to the contrary, lessors shall | ||||||
16 | file all returns and make all payments required under this | ||||||
17 | paragraph to the Department by electronic means in the manner | ||||||
18 | and form as required by the Department. This paragraph does not | ||||||
19 | apply to leases of motor vehicles for which, at the time the | ||||||
20 | lease is entered into, the term of the lease is not a defined | ||||||
21 | period, including leases with a defined initial period with the | ||||||
22 | option to continue the lease on a month-to-month or other basis | ||||||
23 | beyond the initial defined period. | ||||||
24 | The phrase "like kind and character" shall be liberally | ||||||
25 | construed
(including but not limited to any form of motor | ||||||
26 | vehicle for any form of
motor vehicle, or any kind of farm or |
| |||||||
| |||||||
1 | agricultural implement for any other
kind of farm or | ||||||
2 | agricultural implement), while not including a kind of item
| ||||||
3 | which, if sold at retail by that retailer, would be exempt from | ||||||
4 | retailers'
occupation tax and use tax as an isolated or | ||||||
5 | occasional sale.
| ||||||
6 | "Gross receipts" from the sales of tangible personal | ||||||
7 | property at retail
means the total selling price or the amount | ||||||
8 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
9 | and time sales, the amount thereof shall be
included only as | ||||||
10 | and when payments are received by the seller.
Receipts or other | ||||||
11 | consideration derived by a seller from
the sale, transfer or | ||||||
12 | assignment of accounts receivable to a wholly owned
subsidiary | ||||||
13 | will not be deemed payments prior to the time the purchaser
| ||||||
14 | makes payment on such accounts.
| ||||||
15 | "Department" means the Department of Revenue.
| ||||||
16 | "Person" means any natural individual, firm, partnership, | ||||||
17 | association,
joint stock company, joint adventure, public or | ||||||
18 | private corporation, limited
liability company, or a receiver, | ||||||
19 | executor, trustee, guardian or other
representative appointed | ||||||
20 | by order of any court.
| ||||||
21 | The isolated or occasional sale of tangible personal | ||||||
22 | property at retail
by a person who does not hold himself out as | ||||||
23 | being engaged (or who does not
habitually engage) in selling | ||||||
24 | such tangible personal property at retail, or
a sale through a | ||||||
25 | bulk vending machine, does not constitute engaging in a
| ||||||
26 | business of selling such tangible personal property at retail |
| |||||||
| |||||||
1 | within the
meaning of this Act; provided that any person who is | ||||||
2 | engaged in a business
which is not subject to the tax imposed | ||||||
3 | by this Act because of involving
the sale of or a contract to | ||||||
4 | sell real estate or a construction contract to
improve real | ||||||
5 | estate or a construction contract to engineer, install, and
| ||||||
6 | maintain an integrated system of products, but who, in the | ||||||
7 | course of
conducting such business,
transfers tangible | ||||||
8 | personal property to users or consumers in the finished
form in | ||||||
9 | which it was purchased, and which does not become real estate | ||||||
10 | or was
not engineered and installed, under any provision of a | ||||||
11 | construction contract or
real estate sale or real estate sales | ||||||
12 | agreement entered into with some other
person arising out of or | ||||||
13 | because of such nontaxable business, is engaged in the
business | ||||||
14 | of selling tangible personal property at retail to the extent | ||||||
15 | of the
value of the tangible personal property so transferred. | ||||||
16 | If, in such a
transaction, a separate charge is made for the | ||||||
17 | tangible personal property so
transferred, the value of such | ||||||
18 | property, for the purpose of this Act, shall be
the amount so | ||||||
19 | separately charged, but not less than the cost of such property
| ||||||
20 | to the transferor; if no separate charge is made, the value of | ||||||
21 | such property,
for the purposes of this Act, is the cost to the | ||||||
22 | transferor of such tangible
personal property. Construction | ||||||
23 | contracts for the improvement of real estate
consisting of | ||||||
24 | engineering, installation, and maintenance of voice, data, | ||||||
25 | video,
security, and all telecommunication systems do not | ||||||
26 | constitute engaging in a
business of selling tangible personal |
| |||||||
| |||||||
1 | property at retail within the meaning of
this Act if they are | ||||||
2 | sold at one specified contract price.
| ||||||
3 | A person who holds himself or herself out as being engaged | ||||||
4 | (or who habitually
engages) in selling tangible personal | ||||||
5 | property at retail is a person
engaged in the business of | ||||||
6 | selling tangible personal property at retail
hereunder with | ||||||
7 | respect to such sales (and not primarily in a service
| ||||||
8 | occupation) notwithstanding the fact that such person designs | ||||||
9 | and produces
such tangible personal property on special order | ||||||
10 | for the purchaser and in
such a way as to render the property | ||||||
11 | of value only to such purchaser, if
such tangible personal | ||||||
12 | property so produced on special order serves
substantially the | ||||||
13 | same function as stock or standard items of tangible
personal | ||||||
14 | property that are sold at retail.
| ||||||
15 | Persons who engage in the business of transferring tangible | ||||||
16 | personal
property upon the redemption of trading stamps are | ||||||
17 | engaged in the business
of selling such property at retail and | ||||||
18 | shall be liable for and shall pay
the tax imposed by this Act | ||||||
19 | on the basis of the retail value of the
property transferred | ||||||
20 | upon redemption of such stamps.
| ||||||
21 | "Bulk vending machine" means a vending machine,
containing | ||||||
22 | unsorted confections, nuts, toys, or other items designed
| ||||||
23 | primarily to be used or played with by children
which, when a | ||||||
24 | coin or coins of a denomination not larger than $0.50 are
| ||||||
25 | inserted, are dispensed in equal portions, at random and
| ||||||
26 | without selection by the customer.
|
| |||||||
| |||||||
1 | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
| ||||||
2 | (35 ILCS 120/2-5)
| ||||||
3 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
4 | sale of
the following tangible personal property are exempt | ||||||
5 | from the tax imposed
by this Act:
| ||||||
6 | (1) Farm chemicals.
| ||||||
7 | (2) Farm machinery and equipment, both new and used, | ||||||
8 | including that
manufactured on special order, certified by | ||||||
9 | the purchaser to be used
primarily for production | ||||||
10 | agriculture or State or federal agricultural
programs, | ||||||
11 | including individual replacement parts for the machinery | ||||||
12 | and
equipment, including machinery and equipment purchased | ||||||
13 | for lease,
and including implements of husbandry defined in | ||||||
14 | Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||||||
15 | and agricultural chemical and
fertilizer spreaders, and | ||||||
16 | nurse wagons required to be registered
under Section 3-809 | ||||||
17 | of the Illinois Vehicle Code,
but
excluding other motor | ||||||
18 | vehicles required to be registered under the Illinois
| ||||||
19 | Vehicle Code.
Horticultural polyhouses or hoop houses used | ||||||
20 | for propagating, growing, or
overwintering plants shall be | ||||||
21 | considered farm machinery and equipment under
this item | ||||||
22 | (2).
Agricultural chemical tender tanks and dry boxes shall | ||||||
23 | include units sold
separately from a motor vehicle required | ||||||
24 | to be licensed and units sold mounted
on a motor vehicle | ||||||
25 | required to be licensed, if the selling price of the tender
|
| |||||||
| |||||||
1 | is separately stated.
| ||||||
2 | Farm machinery and equipment shall include precision | ||||||
3 | farming equipment
that is
installed or purchased to be | ||||||
4 | installed on farm machinery and equipment
including, but | ||||||
5 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
6 | seeders, or spreaders.
Precision farming equipment | ||||||
7 | includes, but is not limited to,
soil testing sensors, | ||||||
8 | computers, monitors, software, global positioning
and | ||||||
9 | mapping systems, and other such equipment.
| ||||||
10 | Farm machinery and equipment also includes computers, | ||||||
11 | sensors, software, and
related equipment used primarily in | ||||||
12 | the
computer-assisted operation of production agriculture | ||||||
13 | facilities, equipment,
and activities such as, but
not | ||||||
14 | limited to,
the collection, monitoring, and correlation of
| ||||||
15 | animal and crop data for the purpose of
formulating animal | ||||||
16 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
17 | from the provisions of
Section 2-70.
| ||||||
18 | (3) Until July 1, 2003, distillation machinery and | ||||||
19 | equipment, sold as a
unit or kit,
assembled or installed by | ||||||
20 | the retailer, certified by the user to be used
only for the | ||||||
21 | production of ethyl alcohol that will be used for | ||||||
22 | consumption
as motor fuel or as a component of motor fuel | ||||||
23 | for the personal use of the
user, and not subject to sale | ||||||
24 | or resale.
| ||||||
25 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
26 | 2004 through August 30, 2014, graphic arts machinery and |
| |||||||
| |||||||
1 | equipment, including
repair and
replacement parts, both | ||||||
2 | new and used, and including that manufactured on
special | ||||||
3 | order or purchased for lease, certified by the purchaser to | ||||||
4 | be used
primarily for graphic arts production.
Equipment | ||||||
5 | includes chemicals or
chemicals acting as catalysts but | ||||||
6 | only if
the chemicals or chemicals acting as catalysts | ||||||
7 | effect a direct and immediate
change upon a
graphic arts | ||||||
8 | product. Beginning on July 1, 2017, graphic arts machinery | ||||||
9 | and equipment is included in the manufacturing and | ||||||
10 | assembling machinery and equipment exemption under | ||||||
11 | paragraph (14).
| ||||||
12 | (5) A motor vehicle that is used for automobile | ||||||
13 | renting, as defined in the Automobile Renting Occupation | ||||||
14 | and Use Tax Act. This paragraph is exempt from
the | ||||||
15 | provisions of Section 2-70.
| ||||||
16 | (6) Personal property sold by a teacher-sponsored | ||||||
17 | student organization
affiliated with an elementary or | ||||||
18 | secondary school located in Illinois.
| ||||||
19 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
20 | selling price of
a passenger car the
sale of which is | ||||||
21 | subject to the Replacement Vehicle Tax.
| ||||||
22 | (8) Personal property sold to an Illinois county fair | ||||||
23 | association for
use in conducting, operating, or promoting | ||||||
24 | the county fair.
| ||||||
25 | (9) Personal property sold to a not-for-profit arts
or | ||||||
26 | cultural organization that establishes, by proof required |
| |||||||
| |||||||
1 | by the Department
by
rule, that it has received an | ||||||
2 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
3 | Code and that is organized and operated primarily for the
| ||||||
4 | presentation
or support of arts or cultural programming, | ||||||
5 | activities, or services. These
organizations include, but | ||||||
6 | are not limited to, music and dramatic arts
organizations | ||||||
7 | such as symphony orchestras and theatrical groups, arts and
| ||||||
8 | cultural service organizations, local arts councils, | ||||||
9 | visual arts organizations,
and media arts organizations.
| ||||||
10 | On and after July 1, 2001 (the effective date of Public Act | ||||||
11 | 92-35), however, an entity otherwise eligible for this | ||||||
12 | exemption shall not
make tax-free purchases unless it has | ||||||
13 | an active identification number issued by
the Department.
| ||||||
14 | (10) Personal property sold by a corporation, society, | ||||||
15 | association,
foundation, institution, or organization, | ||||||
16 | other than a limited liability
company, that is organized | ||||||
17 | and operated as a not-for-profit service enterprise
for the | ||||||
18 | benefit of persons 65 years of age or older if the personal | ||||||
19 | property
was not purchased by the enterprise for the | ||||||
20 | purpose of resale by the
enterprise.
| ||||||
21 | (11) Personal property sold to a governmental body, to | ||||||
22 | a corporation,
society, association, foundation, or | ||||||
23 | institution organized and operated
exclusively for | ||||||
24 | charitable, religious, or educational purposes, or to a
| ||||||
25 | not-for-profit corporation, society, association, | ||||||
26 | foundation, institution,
or organization that has no |
| |||||||
| |||||||
1 | compensated officers or employees and that is
organized and | ||||||
2 | operated primarily for the recreation of persons 55 years | ||||||
3 | of
age or older. A limited liability company may qualify | ||||||
4 | for the exemption under
this paragraph only if the limited | ||||||
5 | liability company is organized and operated
exclusively | ||||||
6 | for educational purposes. On and after July 1, 1987, | ||||||
7 | however, no
entity otherwise eligible for this exemption | ||||||
8 | shall make tax-free purchases
unless it has an active | ||||||
9 | identification number issued by the Department.
| ||||||
10 | (12) (Blank).
| ||||||
11 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
12 | 2004, motor vehicles of the second division
with a gross | ||||||
13 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
14 | to the commercial distribution fee imposed under Section | ||||||
15 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
16 | 2004 and through June 30, 2005, the use in this State of | ||||||
17 | motor vehicles of the second division: (i) with a gross | ||||||
18 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
19 | are subject to the commercial distribution fee imposed | ||||||
20 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
21 | (iii) that are primarily used for commercial purposes. | ||||||
22 | Through June 30, 2005, this
exemption applies to repair and | ||||||
23 | replacement parts added
after the
initial purchase of such | ||||||
24 | a motor vehicle if that motor vehicle is used in a
manner | ||||||
25 | that
would qualify for the rolling stock exemption | ||||||
26 | otherwise provided for in this
Act. For purposes of this |
| |||||||
| |||||||
1 | paragraph, "used for commercial purposes" means the | ||||||
2 | transportation of persons or property in furtherance of any | ||||||
3 | commercial or industrial enterprise whether for-hire or | ||||||
4 | not.
| ||||||
5 | (13) Proceeds from sales to owners, lessors, or
| ||||||
6 | shippers of
tangible personal property that is utilized by | ||||||
7 | interstate carriers for
hire for use as rolling stock | ||||||
8 | moving in interstate commerce
and equipment operated by a | ||||||
9 | telecommunications provider, licensed as a
common carrier | ||||||
10 | by the Federal Communications Commission, which is
| ||||||
11 | permanently installed in or affixed to aircraft moving in | ||||||
12 | interstate commerce.
| ||||||
13 | (14) Machinery and equipment that will be used by the | ||||||
14 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
15 | process of manufacturing or
assembling tangible personal | ||||||
16 | property for wholesale or retail sale or
lease, whether the | ||||||
17 | sale or lease is made directly by the manufacturer or by
| ||||||
18 | some other person, whether the materials used in the | ||||||
19 | process are owned by
the manufacturer or some other person, | ||||||
20 | or whether the sale or lease is made
apart from or as an | ||||||
21 | incident to the seller's engaging in the service
occupation | ||||||
22 | of producing machines, tools, dies, jigs, patterns, | ||||||
23 | gauges, or
other similar items of no commercial value on | ||||||
24 | special order for a particular
purchaser. The exemption | ||||||
25 | provided by this paragraph (14) does not include machinery | ||||||
26 | and equipment used in (i) the generation of electricity for |
| |||||||
| |||||||
1 | wholesale or retail sale; (ii) the generation or treatment | ||||||
2 | of natural or artificial gas for wholesale or retail sale | ||||||
3 | that is delivered to customers through pipes, pipelines, or | ||||||
4 | mains; or (iii) the treatment of water for wholesale or | ||||||
5 | retail sale that is delivered to customers through pipes, | ||||||
6 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
7 | are declaratory of existing law as to the meaning and scope | ||||||
8 | of this exemption. Beginning on July 1, 2017, the exemption | ||||||
9 | provided by this paragraph (14) includes, but is not | ||||||
10 | limited to, graphic arts machinery and equipment, as | ||||||
11 | defined in paragraph (4) of this Section.
| ||||||
12 | (15) Proceeds of mandatory service charges separately | ||||||
13 | stated on
customers' bills for purchase and consumption of | ||||||
14 | food and beverages, to the
extent that the proceeds of the | ||||||
15 | service charge are in fact turned over as
tips or as a | ||||||
16 | substitute for tips to the employees who participate | ||||||
17 | directly
in preparing, serving, hosting or cleaning up the | ||||||
18 | food or beverage function
with respect to which the service | ||||||
19 | charge is imposed.
| ||||||
20 | (16) Tangible personal property sold to a purchaser if | ||||||
21 | the purchaser is exempt from use tax by operation of | ||||||
22 | federal law. This paragraph is exempt from the provisions | ||||||
23 | of Section 2-70.
| ||||||
24 | (17) Tangible personal property sold to a common | ||||||
25 | carrier by rail or
motor that
receives the physical | ||||||
26 | possession of the property in Illinois and that
transports |
| |||||||
| |||||||
1 | the property, or shares with another common carrier in the
| ||||||
2 | transportation of the property, out of Illinois on a | ||||||
3 | standard uniform bill
of lading showing the seller of the | ||||||
4 | property as the shipper or consignor of
the property to a | ||||||
5 | destination outside Illinois, for use outside Illinois.
| ||||||
6 | (18) Legal tender, currency, medallions, or gold or | ||||||
7 | silver coinage
issued by the State of Illinois, the | ||||||
8 | government of the United States of
America, or the | ||||||
9 | government of any foreign country, and bullion.
| ||||||
10 | (19) Until July 1, 2003, oil field exploration, | ||||||
11 | drilling, and production
equipment, including
(i) rigs and | ||||||
12 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
13 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
14 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
15 | storage tanks and flow
lines, (v) any individual | ||||||
16 | replacement part for oil field exploration,
drilling, and | ||||||
17 | production equipment, and (vi) machinery and equipment | ||||||
18 | purchased
for lease; but
excluding motor vehicles required | ||||||
19 | to be registered under the Illinois
Vehicle Code.
| ||||||
20 | (20) Photoprocessing machinery and equipment, | ||||||
21 | including repair and
replacement parts, both new and used, | ||||||
22 | including that manufactured on
special order, certified by | ||||||
23 | the purchaser to be used primarily for
photoprocessing, and | ||||||
24 | including photoprocessing machinery and equipment
| ||||||
25 | purchased for lease.
| ||||||
26 | (21) Until July 1, 2023, coal and aggregate |
| |||||||
| |||||||
1 | exploration, mining, off-highway hauling,
processing,
| ||||||
2 | maintenance, and reclamation equipment, including
| ||||||
3 | replacement parts and equipment, and including
equipment | ||||||
4 | purchased for lease, but excluding motor vehicles required | ||||||
5 | to be
registered under the Illinois Vehicle Code. The | ||||||
6 | changes made to this Section by Public Act 97-767 apply on | ||||||
7 | and after July 1, 2003, but no claim for credit or refund | ||||||
8 | is allowed on or after August 16, 2013 (the effective date | ||||||
9 | of Public Act 98-456)
for such taxes paid during the period | ||||||
10 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
11 | effective date of Public Act 98-456).
| ||||||
12 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
13 | sold to or used by an air carrier,
certified by the carrier | ||||||
14 | to be used for consumption, shipment, or storage
in the | ||||||
15 | conduct of its business as an air common carrier, for a | ||||||
16 | flight
destined for or returning from a location or | ||||||
17 | locations
outside the United States without regard to | ||||||
18 | previous or subsequent domestic
stopovers.
| ||||||
19 | Beginning July 1, 2013, fuel and petroleum products | ||||||
20 | sold to or used by an air carrier, certified by the carrier | ||||||
21 | to be used for consumption, shipment, or storage in the | ||||||
22 | conduct of its business as an air common carrier, for a | ||||||
23 | flight that (i) is engaged in foreign trade or is engaged | ||||||
24 | in trade between the United States and any of its | ||||||
25 | possessions and (ii) transports at least one individual or | ||||||
26 | package for hire from the city of origination to the city |
| |||||||
| |||||||
1 | of final destination on the same aircraft, without regard | ||||||
2 | to a change in the flight number of that aircraft. | ||||||
3 | (23) A transaction in which the purchase order is | ||||||
4 | received by a florist
who is located outside Illinois, but | ||||||
5 | who has a florist located in Illinois
deliver the property | ||||||
6 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
7 | (24) Fuel consumed or used in the operation of ships, | ||||||
8 | barges, or vessels
that are used primarily in or for the | ||||||
9 | transportation of property or the
conveyance of persons for | ||||||
10 | hire on rivers bordering on this State if the
fuel is | ||||||
11 | delivered by the seller to the purchaser's barge, ship, or | ||||||
12 | vessel
while it is afloat upon that bordering river.
| ||||||
13 | (25) Except as provided in item (25-5) of this Section, | ||||||
14 | a
motor vehicle sold in this State to a nonresident even | ||||||
15 | though the
motor vehicle is delivered to the nonresident in | ||||||
16 | this State, if the motor
vehicle is not to be titled in | ||||||
17 | this State, and if a drive-away permit
is issued to the | ||||||
18 | motor vehicle as provided in Section 3-603 of the Illinois
| ||||||
19 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
20 | registration
plates to transfer to the motor vehicle upon | ||||||
21 | returning to his or her home
state. The issuance of the | ||||||
22 | drive-away permit or having
the
out-of-state registration | ||||||
23 | plates to be transferred is prima facie evidence
that the | ||||||
24 | motor vehicle will not be titled in this State.
| ||||||
25 | (25-5) The exemption under item (25) does not apply if | ||||||
26 | the state in which the motor vehicle will be titled does |
| |||||||
| |||||||
1 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
2 | and delivered in that state to an Illinois resident but | ||||||
3 | titled in Illinois. The tax collected under this Act on the | ||||||
4 | sale of a motor vehicle in this State to a resident of | ||||||
5 | another state that does not allow a reciprocal exemption | ||||||
6 | shall be imposed at a rate equal to the state's rate of tax | ||||||
7 | on taxable property in the state in which the purchaser is | ||||||
8 | a resident, except that the tax shall not exceed the tax | ||||||
9 | that would otherwise be imposed under this Act. At the time | ||||||
10 | of the sale, the purchaser shall execute a statement, | ||||||
11 | signed under penalty of perjury, of his or her intent to | ||||||
12 | title the vehicle in the state in which the purchaser is a | ||||||
13 | resident within 30 days after the sale and of the fact of | ||||||
14 | the payment to the State of Illinois of tax in an amount | ||||||
15 | equivalent to the state's rate of tax on taxable property | ||||||
16 | in his or her state of residence and shall submit the | ||||||
17 | statement to the appropriate tax collection agency in his | ||||||
18 | or her state of residence. In addition, the retailer must | ||||||
19 | retain a signed copy of the statement in his or her | ||||||
20 | records. Nothing in this item shall be construed to require | ||||||
21 | the removal of the vehicle from this state following the | ||||||
22 | filing of an intent to title the vehicle in the purchaser's | ||||||
23 | state of residence if the purchaser titles the vehicle in | ||||||
24 | his or her state of residence within 30 days after the date | ||||||
25 | of sale. The tax collected under this Act in accordance | ||||||
26 | with this item (25-5) shall be proportionately distributed |
| |||||||
| |||||||
1 | as if the tax were collected at the 6.25% general rate | ||||||
2 | imposed under this Act.
| ||||||
3 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
4 | under this Act on the sale of an aircraft, as defined in | ||||||
5 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
6 | following conditions are met: | ||||||
7 | (1) the aircraft leaves this State within 15 days | ||||||
8 | after the later of either the issuance of the final | ||||||
9 | billing for the sale of the aircraft, or the authorized | ||||||
10 | approval for return to service, completion of the | ||||||
11 | maintenance record entry, and completion of the test | ||||||
12 | flight and ground test for inspection, as required by | ||||||
13 | 14 C.F.R. 91.407; | ||||||
14 | (2) the aircraft is not based or registered in this | ||||||
15 | State after the sale of the aircraft; and | ||||||
16 | (3) the seller retains in his or her books and | ||||||
17 | records and provides to the Department a signed and | ||||||
18 | dated certification from the purchaser, on a form | ||||||
19 | prescribed by the Department, certifying that the | ||||||
20 | requirements of this item (25-7) are met. The | ||||||
21 | certificate must also include the name and address of | ||||||
22 | the purchaser, the address of the location where the | ||||||
23 | aircraft is to be titled or registered, the address of | ||||||
24 | the primary physical location of the aircraft, and | ||||||
25 | other information that the Department may reasonably | ||||||
26 | require. |
| |||||||
| |||||||
1 | For purposes of this item (25-7): | ||||||
2 | "Based in this State" means hangared, stored, or | ||||||
3 | otherwise used, excluding post-sale customizations as | ||||||
4 | defined in this Section, for 10 or more days in each | ||||||
5 | 12-month period immediately following the date of the sale | ||||||
6 | of the aircraft. | ||||||
7 | "Registered in this State" means an aircraft | ||||||
8 | registered with the Department of Transportation, | ||||||
9 | Aeronautics Division, or titled or registered with the | ||||||
10 | Federal Aviation Administration to an address located in | ||||||
11 | this State. | ||||||
12 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
13 | Section 2-70.
| ||||||
14 | (26) Semen used for artificial insemination of | ||||||
15 | livestock for direct
agricultural production.
| ||||||
16 | (27) Horses, or interests in horses, registered with | ||||||
17 | and meeting the
requirements of any of the
Arabian Horse | ||||||
18 | Club Registry of America, Appaloosa Horse Club, American | ||||||
19 | Quarter
Horse Association, United States
Trotting | ||||||
20 | Association, or Jockey Club, as appropriate, used for
| ||||||
21 | purposes of breeding or racing for prizes. This item (27) | ||||||
22 | is exempt from the provisions of Section 2-70, and the | ||||||
23 | exemption provided for under this item (27) applies for all | ||||||
24 | periods beginning May 30, 1995, but no claim for credit or | ||||||
25 | refund is allowed on or after January 1, 2008 (the | ||||||
26 | effective date of Public Act 95-88)
for such taxes paid |
| |||||||
| |||||||
1 | during the period beginning May 30, 2000 and ending on | ||||||
2 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
3 | (28) Computers and communications equipment utilized | ||||||
4 | for any
hospital
purpose
and equipment used in the | ||||||
5 | diagnosis,
analysis, or treatment of hospital patients | ||||||
6 | sold to a lessor who leases the
equipment, under a lease of | ||||||
7 | one year or longer executed or in effect at the
time of the | ||||||
8 | purchase, to a
hospital
that has been issued an active tax | ||||||
9 | exemption identification number by the
Department under | ||||||
10 | Section 1g of this Act.
| ||||||
11 | (29) Personal property sold to a lessor who leases the
| ||||||
12 | property, under a
lease of one year or longer executed or | ||||||
13 | in effect at the time of the purchase,
to a governmental | ||||||
14 | body
that has been issued an active tax exemption | ||||||
15 | identification number by the
Department under Section 1g of | ||||||
16 | this Act.
| ||||||
17 | (30) Beginning with taxable years ending on or after | ||||||
18 | December
31, 1995
and
ending with taxable years ending on | ||||||
19 | or before December 31, 2004,
personal property that is
| ||||||
20 | donated for disaster relief to be used in a State or | ||||||
21 | federally declared
disaster area in Illinois or bordering | ||||||
22 | Illinois by a manufacturer or retailer
that is registered | ||||||
23 | in this State to a corporation, society, association,
| ||||||
24 | foundation, or institution that has been issued a sales tax | ||||||
25 | exemption
identification number by the Department that | ||||||
26 | assists victims of the disaster
who reside within the |
| |||||||
| |||||||
1 | declared disaster area.
| ||||||
2 | (31) Beginning with taxable years ending on or after | ||||||
3 | December
31, 1995 and
ending with taxable years ending on | ||||||
4 | or before December 31, 2004, personal
property that is used | ||||||
5 | in the performance of infrastructure repairs in this
State, | ||||||
6 | including but not limited to municipal roads and streets, | ||||||
7 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
8 | water and sewer line extensions,
water distribution and | ||||||
9 | purification facilities, storm water drainage and
| ||||||
10 | retention facilities, and sewage treatment facilities, | ||||||
11 | resulting from a State
or federally declared disaster in | ||||||
12 | Illinois or bordering Illinois when such
repairs are | ||||||
13 | initiated on facilities located in the declared disaster | ||||||
14 | area
within 6 months after the disaster.
| ||||||
15 | (32) Beginning July 1, 1999, game or game birds sold at | ||||||
16 | a "game breeding
and
hunting preserve area" as that term is | ||||||
17 | used
in the
Wildlife Code. This paragraph is exempt from | ||||||
18 | the provisions
of
Section 2-70.
| ||||||
19 | (33) A motor vehicle, as that term is defined in | ||||||
20 | Section 1-146
of the
Illinois Vehicle Code, that is donated | ||||||
21 | to a corporation, limited liability
company, society, | ||||||
22 | association, foundation, or institution that is determined | ||||||
23 | by
the Department to be organized and operated exclusively | ||||||
24 | for educational
purposes. For purposes of this exemption, | ||||||
25 | "a corporation, limited liability
company, society, | ||||||
26 | association, foundation, or institution organized and
|
| |||||||
| |||||||
1 | operated
exclusively for educational purposes" means all | ||||||
2 | tax-supported public schools,
private schools that offer | ||||||
3 | systematic instruction in useful branches of
learning by | ||||||
4 | methods common to public schools and that compare favorably | ||||||
5 | in
their scope and intensity with the course of study | ||||||
6 | presented in tax-supported
schools, and vocational or | ||||||
7 | technical schools or institutes organized and
operated | ||||||
8 | exclusively to provide a course of study of not less than 6 | ||||||
9 | weeks
duration and designed to prepare individuals to | ||||||
10 | follow a trade or to pursue a
manual, technical, | ||||||
11 | mechanical, industrial, business, or commercial
| ||||||
12 | occupation.
| ||||||
13 | (34) Beginning January 1, 2000, personal property, | ||||||
14 | including food, purchased
through fundraising events for | ||||||
15 | the benefit of a public or private elementary or
secondary | ||||||
16 | school, a group of those schools, or one or more school | ||||||
17 | districts if
the events are sponsored by an entity | ||||||
18 | recognized by the school district that
consists primarily | ||||||
19 | of volunteers and includes parents and teachers of the
| ||||||
20 | school children. This paragraph does not apply to | ||||||
21 | fundraising events (i) for
the benefit of private home | ||||||
22 | instruction or (ii) for which the fundraising
entity | ||||||
23 | purchases the personal property sold at the events from | ||||||
24 | another
individual or entity that sold the property for the | ||||||
25 | purpose of resale by the
fundraising entity and that | ||||||
26 | profits from the sale to the fundraising entity.
This |
| |||||||
| |||||||
1 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
2 | (35) Beginning January 1, 2000 and through December 31, | ||||||
3 | 2001, new or used
automatic vending machines that prepare | ||||||
4 | and serve hot food and beverages,
including coffee, soup, | ||||||
5 | and other items, and replacement parts for these
machines. | ||||||
6 | Beginning January 1, 2002 and through June 30, 2003, | ||||||
7 | machines
and parts for machines used in
commercial, | ||||||
8 | coin-operated amusement and vending business if a use or | ||||||
9 | occupation
tax is paid on the gross receipts derived from | ||||||
10 | the use of the commercial,
coin-operated amusement and | ||||||
11 | vending machines. This paragraph is exempt from
the | ||||||
12 | provisions of Section 2-70.
| ||||||
13 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
14 | 2016, food for human consumption that is to be consumed off
| ||||||
15 | the premises where it is sold (other than alcoholic | ||||||
16 | beverages, soft drinks,
and food that has been prepared for | ||||||
17 | immediate consumption) and prescription
and | ||||||
18 | nonprescription medicines, drugs, medical appliances, and | ||||||
19 | insulin, urine
testing materials, syringes, and needles | ||||||
20 | used by diabetics, for human use, when
purchased for use by | ||||||
21 | a person receiving medical assistance under Article V of
| ||||||
22 | the Illinois Public Aid Code who resides in a licensed | ||||||
23 | long-term care facility,
as defined in the Nursing Home | ||||||
24 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
25 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
26 | Mental Health Rehabilitation Act of 2013.
|
| |||||||
| |||||||
1 | (36) Beginning August 2, 2001, computers and | ||||||
2 | communications equipment
utilized for any hospital purpose | ||||||
3 | and equipment used in the diagnosis,
analysis, or treatment | ||||||
4 | of hospital patients sold to a lessor who leases the
| ||||||
5 | equipment, under a lease of one year or longer executed or | ||||||
6 | in effect at the
time of the purchase, to a hospital that | ||||||
7 | has been issued an active tax
exemption identification | ||||||
8 | number by the Department under Section 1g of this Act.
This | ||||||
9 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
10 | (37) Beginning August 2, 2001, personal property sold | ||||||
11 | to a lessor who
leases the property, under a lease of one | ||||||
12 | year or longer executed or in effect
at the time of the | ||||||
13 | purchase, to a governmental body that has been issued an
| ||||||
14 | active tax exemption identification number by the | ||||||
15 | Department under Section 1g
of this Act. This paragraph is | ||||||
16 | exempt from the provisions of Section 2-70.
| ||||||
17 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
18 | 2016, tangible personal property purchased
from an | ||||||
19 | Illinois retailer by a taxpayer engaged in centralized | ||||||
20 | purchasing
activities in Illinois who will, upon receipt of | ||||||
21 | the property in Illinois,
temporarily store the property in | ||||||
22 | Illinois (i) for the purpose of subsequently
transporting | ||||||
23 | it outside this State for use or consumption thereafter | ||||||
24 | solely
outside this State or (ii) for the purpose of being | ||||||
25 | processed, fabricated, or
manufactured into, attached to, | ||||||
26 | or incorporated into other tangible personal
property to be |
| |||||||
| |||||||
1 | transported outside this State and thereafter used or | ||||||
2 | consumed
solely outside this State. The Director of Revenue | ||||||
3 | shall, pursuant to rules
adopted in accordance with the | ||||||
4 | Illinois Administrative Procedure Act, issue a
permit to | ||||||
5 | any taxpayer in good standing with the Department who is | ||||||
6 | eligible for
the exemption under this paragraph (38). The | ||||||
7 | permit issued under
this paragraph (38) shall authorize the | ||||||
8 | holder, to the extent and
in the manner specified in the | ||||||
9 | rules adopted under this Act, to purchase
tangible personal | ||||||
10 | property from a retailer exempt from the taxes imposed by
| ||||||
11 | this Act. Taxpayers shall maintain all necessary books and | ||||||
12 | records to
substantiate the use and consumption of all such | ||||||
13 | tangible personal property
outside of the State of | ||||||
14 | Illinois.
| ||||||
15 | (39) Beginning January 1, 2008, tangible personal | ||||||
16 | property used in the construction or maintenance of a | ||||||
17 | community water supply, as defined under Section 3.145 of | ||||||
18 | the Environmental Protection Act, that is operated by a | ||||||
19 | not-for-profit corporation that holds a valid water supply | ||||||
20 | permit issued under Title IV of the Environmental | ||||||
21 | Protection Act. This paragraph is exempt from the | ||||||
22 | provisions of Section 2-70.
| ||||||
23 | (40) Beginning January 1, 2010, materials, parts, | ||||||
24 | equipment, components, and furnishings incorporated into | ||||||
25 | or upon an aircraft as part of the modification, | ||||||
26 | refurbishment, completion, replacement, repair, or |
| |||||||
| |||||||
1 | maintenance of the aircraft. This exemption includes | ||||||
2 | consumable supplies used in the modification, | ||||||
3 | refurbishment, completion, replacement, repair, and | ||||||
4 | maintenance of aircraft, but excludes any materials, | ||||||
5 | parts, equipment, components, and consumable supplies used | ||||||
6 | in the modification, replacement, repair, and maintenance | ||||||
7 | of aircraft engines or power plants, whether such engines | ||||||
8 | or power plants are installed or uninstalled upon any such | ||||||
9 | aircraft. "Consumable supplies" include, but are not | ||||||
10 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
11 | lubricants, cleaning solution, latex gloves, and | ||||||
12 | protective films. This exemption applies only to the sale | ||||||
13 | of qualifying tangible personal property to persons who | ||||||
14 | modify, refurbish, complete, replace, or maintain an | ||||||
15 | aircraft and who (i) hold an Air Agency Certificate and are | ||||||
16 | empowered to operate an approved repair station by the | ||||||
17 | Federal Aviation Administration, (ii) have a Class IV | ||||||
18 | Rating, and (iii) conduct operations in accordance with | ||||||
19 | Part 145 of the Federal Aviation Regulations. The exemption | ||||||
20 | does not include aircraft operated by a commercial air | ||||||
21 | carrier providing scheduled passenger air service pursuant | ||||||
22 | to authority issued under Part 121 or Part 129 of the | ||||||
23 | Federal Aviation Regulations. The changes made to this | ||||||
24 | paragraph (40) by Public Act 98-534 are declarative of | ||||||
25 | existing law. | ||||||
26 | (41) Tangible personal property sold to a |
| |||||||
| |||||||
1 | public-facilities corporation, as described in Section | ||||||
2 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
3 | constructing or furnishing a municipal convention hall, | ||||||
4 | but only if the legal title to the municipal convention | ||||||
5 | hall is transferred to the municipality without any further | ||||||
6 | consideration by or on behalf of the municipality at the | ||||||
7 | time of the completion of the municipal convention hall or | ||||||
8 | upon the retirement or redemption of any bonds or other | ||||||
9 | debt instruments issued by the public-facilities | ||||||
10 | corporation in connection with the development of the | ||||||
11 | municipal convention hall. This exemption includes | ||||||
12 | existing public-facilities corporations as provided in | ||||||
13 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
14 | paragraph is exempt from the provisions of Section 2-70. | ||||||
15 | (42) Beginning January 1, 2017, menstrual pads, | ||||||
16 | tampons, and menstrual cups. | ||||||
17 | (43) Merchandise that is subject to the Rental Purchase | ||||||
18 | Agreement Occupation and Use Tax. The purchaser must | ||||||
19 | certify that the item is purchased to be rented subject to | ||||||
20 | a rental purchase agreement, as defined in the Rental | ||||||
21 | Purchase Agreement Act, and provide proof of registration | ||||||
22 | under the Rental Purchase Agreement Occupation and Use Tax | ||||||
23 | Act. This paragraph is exempt from the provisions of | ||||||
24 | Section 2-70. | ||||||
25 | (44) Until December 31, 2023, equipment and materials | ||||||
26 | incorporated into or used in the business of providing |
| |||||||
| |||||||
1 | broadband services, including all equipment and materials, | ||||||
2 | machinery, software, or other tangible personal property that | ||||||
3 | is used in whole or in part in producing, broadcasting, | ||||||
4 | distributing, sending, receiving, storing, transmitting, | ||||||
5 | retransmitting, amplifying, switching, or routing broadband | ||||||
6 | services, including the monitoring, testing, maintaining, | ||||||
7 | enabling, or facilitating of such equipment, machinery, | ||||||
8 | software, or other infrastructure. Such property includes, but | ||||||
9 | is not limited to, wires, cables including fiber optic cables, | ||||||
10 | antennas, poles, switches, routers, amplifiers, rectifiers, | ||||||
11 | repeaters, receivers, multiplexers, duplexers, transmitters, | ||||||
12 | power equipment, backup power equipment, diagnostic equipment, | ||||||
13 | storage devices, modems, and other general central office | ||||||
14 | equipment, such as channel cards, frames, and cabinets. | ||||||
15 | (Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16; | ||||||
16 | 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff. | ||||||
17 | 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18; | ||||||
18 | 100-1171, eff. 1-4-19; revised 1-8-19.)
| ||||||
19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.".
|