100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1803
 
Introduced 2/9/2017, by Sen. William E. Brady
 
SYNOPSIS AS INTRODUCED:



      
35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
35 ILCS 115/3-5
35 ILCS 120/2-5

 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reinstates the exemption for the use or sale of tangible personal property
purchased from an Illinois retailer by a taxpayer engaged in centralized
purchasing activities in Illinois. Provides that the exemption sunsets on June 30, 2021 (currently, June 30, 2016). Effective immediately.



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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


SB1803LRB100 05622 HLH 15636 b



1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Use Tax Act is amended by changing Section 
53-55 as follows:




6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)



7 Sec. 3-55. Multistate exemption. To prevent actual or 
8likely multistate taxation, the tax imposed by this
Act
does 
9not apply to the use of
tangible personal property in this 
10State under the following circumstances:

11 (a) The use, in this State, of tangible personal property 
12acquired
outside this State by a nonresident individual and 
13brought into this
State by the individual for his or her own 
14use while temporarily within
this State or while passing 
15through this State.

16 (b) The use, in this State, of tangible personal
property 
17by an
interstate carrier for hire as rolling stock moving in 
18interstate
commerce or by lessors under a lease of one year or 
19longer executed or
in effect at the time of purchase of 
20tangible personal property by
interstate carriers for-hire for 
21use as rolling stock moving in interstate
commerce as long as 
22so used by the interstate carriers for-hire, and equipment

23operated by a telecommunications provider, licensed as a common 
 
 
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1carrier by the
Federal Communications Commission, which is 
2permanently installed in or affixed
to aircraft moving in 
3interstate commerce.

4 (c) The use, in this State, by owners, lessors,
or
shippers

5of tangible personal property that is utilized by interstate 
6carriers
for hire for use as rolling stock moving in interstate 
7commerce as
long as so used by the interstate carriers for 
8hire, and equipment
operated by a telecommunications provider, 
9licensed as a common carrier by the
Federal Communications 
10Commission, which is permanently installed in or affixed
to 
11aircraft moving in interstate commerce.

12 (d) The use, in this State, of tangible personal property 
13that is
acquired outside this State and caused to be brought 
14into this State by
a person who has already paid a tax in 
15another State in respect to the
sale, purchase, or use of that 
16property, to the extent of the amount of
the tax properly due 
17and paid in the other State.

18 (e) The temporary storage, in this State, of tangible 
19personal
property that is acquired outside this State and that, 
20after
being brought into this State and stored here 
21temporarily, is used
solely outside this State or is physically 
22attached to or incorporated
into other tangible personal 
23property that is used solely outside this
State, or is altered 
24by converting, fabricating, manufacturing, printing,

25processing, or shaping, and, as altered, is used solely outside 
26this State.

 
 
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1 (f) The temporary storage in this State of building 
2materials and
fixtures that are acquired either in this State 
3or outside this State
by an Illinois registered combination 
4retailer and construction contractor, and
that the purchaser 
5thereafter uses outside this State by incorporating that

6property into real estate located outside this State.

7 (g) The use or purchase of tangible personal property by a 
8common carrier
by rail or motor that receives the physical 
9possession of the property in
Illinois, and
that transports the 
10property, or shares with another common carrier in the

11transportation of the property, out of Illinois on a standard 
12uniform bill of
lading showing the seller of the property as 
13the shipper or consignor of the
property to a destination 
14outside Illinois, for use outside Illinois.

15 (h) Except as provided in subsection (h-1), the use, in 
16this State, of a motor vehicle that was sold in
this State to a 
17nonresident, even though the motor vehicle is
delivered to the 
18nonresident in this State, if the motor vehicle
is not to be 
19titled in this State, and if a
drive-away permit is issued to 
20the motor vehicle as
provided in Section 3-603 of the Illinois 
21Vehicle Code or if the
nonresident purchaser has vehicle 
22registration plates to transfer
to the motor vehicle upon 
23returning to his or her home state.
The issuance of the 
24drive-away permit or having the
out-of-state
registration 
25plates to be transferred shall be prima facie evidence
that the 
26motor vehicle will not be titled in this State.

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

4 (h-2) The following exemptions apply with respect to 
5certain aircraft:
6  (1) Beginning on July 1, 2007, no tax is imposed under 
7 this Act on the purchase of an aircraft, as defined in 
8 Section 3 of the Illinois Aeronautics Act, if all of the 
9 following conditions are met:
10   (A) the aircraft leaves this State within 15 days 
11 after the later of either the issuance of the final 
12 billing for the purchase of the aircraft or the 
13 authorized approval for return to service, completion 
14 of the maintenance record entry, and completion of the 
15 test flight and ground test for inspection, as required 
16 by 14 C.F.R. 91.407;
17   (B) the aircraft is not based or registered in this 
18 State after the purchase of the aircraft; and
19   (C) the purchaser provides the Department with a 
20 signed and dated certification, on a form prescribed by 
21 the Department, certifying that the requirements of 
22 this item (1) are met. The certificate must also 
23 include the name and address of the purchaser, the 
24 address of the location where the aircraft is to be 
25 titled or registered, the address of the primary 
26 physical location of the aircraft, and other 
 
 
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1 information that the Department may reasonably 
2 require.
3  (2) Beginning on July 1, 2007, no tax is imposed under 
4 this Act on the use of an aircraft, as defined in Section 3 
5 of the Illinois Aeronautics Act, that is temporarily 
6 located in this State for the purpose of a prepurchase 
7 evaluation if all of the following conditions are met:
8   (A) the aircraft is not based or registered in this 
9 State after the prepurchase evaluation; and
10   (B) the purchaser provides the Department with a 
11 signed and dated certification, on a form prescribed by 
12 the Department, certifying that the requirements of 
13 this item (2) are met. The certificate must also 
14 include the name and address of the purchaser, the 
15 address of the location where the aircraft is to be 
16 titled or registered, the address of the primary 
17 physical location of the aircraft, and other 
18 information that the Department may reasonably 
19 require.
20  (3) Beginning on July 1, 2007, no tax is imposed under 
21 this Act on the use of an aircraft, as defined in Section 3 
22 of the Illinois Aeronautics Act, that is temporarily 
23 located in this State for the purpose of a post-sale 
24 customization if all of the following conditions are met:
25   (A) the aircraft leaves this State within 15 days 
26 after the authorized approval for return to service, 
 
 
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1 completion of the maintenance record entry, and 
2 completion of the test flight and ground test for 
3 inspection, as required by 14 C.F.R. 91.407;
4   (B) the aircraft is not based or registered in this 
5 State either before or after the post-sale 
6 customization; and
7   (C) the purchaser provides the Department with a 
8 signed and dated certification, on a form prescribed by 
9 the Department, certifying that the requirements of 
10 this item (3) are met. The certificate must also 
11 include the name and address of the purchaser, the 
12 address of the location where the aircraft is to be 
13 titled or registered, the address of the primary 
14 physical location of the aircraft, and other 
15 information that the Department may reasonably 
16 require.
17 If tax becomes due under this subsection (h-2) because of 
18the purchaser's use of the aircraft in this State, the 
19purchaser shall file a return with the Department and pay the 
20tax on the fair market value of the aircraft. This return and 
21payment of the tax must be made no later than 30 days after the 
22aircraft is used in a taxable manner in this State. The tax is 
23based on the fair market value of the aircraft on the date that 
24it is first used in a taxable manner in this State.
25 For purposes of this subsection (h-2):
26 "Based in this State" means hangared, stored, or otherwise 
 
 
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1used, excluding post-sale customizations as defined in this 
2Section, for 10 or more days in each 12-month period 
3immediately following the date of the sale of the aircraft.
4 "Post-sale customization" means any improvement, 
5maintenance, or repair that is performed on an aircraft 
6following a transfer of ownership of the aircraft.
7 "Prepurchase evaluation" means an examination of an 
8aircraft to provide a potential purchaser with information 
9relevant to the potential purchase.
10 "Registered in this State" means an aircraft registered 
11with the Department of Transportation, Aeronautics Division, 
12or titled or registered with the Federal Aviation 
13Administration to an address located in this State.

14 This subsection (h-2) is exempt from the provisions of 
15Section 3-90.

16 (i) Beginning July 1, 1999, the use, in this State, of fuel 
17acquired
outside this State and brought into this State in the 
18fuel supply
tanks of locomotives engaged in freight hauling and 
19passenger service for
interstate commerce. This subsection is 
20exempt from the provisions of Section
3-90.

21 (j) Beginning on January 1, 2002 and through June 30, 2016, 
22and beginning again on the first day of the first month to 
23occur on or after the effective date of this amendatory Act of 
24the 100th General Assembly and through June 30, 2021, the use 
25of tangible personal property
purchased from an Illinois 
26retailer by a taxpayer engaged in centralized
purchasing 
 
 
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1activities in Illinois who will, upon receipt of the property 
2in
Illinois, temporarily store the property in Illinois (i) for 
3the purpose of
subsequently transporting it outside this State 
4for use or consumption
thereafter solely outside this State or 
5(ii) for the purpose of being
processed, fabricated, or 
6manufactured into, attached to, or incorporated into
other 
7tangible personal property to be transported outside this State 
8and
thereafter used or consumed solely outside this State. The 
9Director of Revenue
shall, pursuant to rules adopted in 
10accordance with the Illinois Administrative
Procedure Act, 
11issue a permit to any taxpayer in good standing with the

12Department who is eligible for the exemption under this 
13subsection (j). The
permit issued under this subsection (j) 
14shall authorize the holder, to the
extent and in the manner 
15specified in the rules adopted under this Act, to
purchase 
16tangible personal property from a retailer exempt from the 
17taxes
imposed by this Act. Taxpayers shall maintain all 
18necessary books and records
to substantiate the use and 
19consumption of all such tangible personal property
outside of 
20the State of Illinois.

21(Source: P.A. 97-73, eff. 6-30-11.)


22 Section 10. The Service Use Tax Act is amended by changing 
23Section 3-45 as follows:




24 (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)



 
 
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1 Sec. 3-45. Multistate exemption. To prevent actual or 
2likely multistate
taxation, the tax imposed by this Act does 
3not apply
to the use of tangible personal property in this 
4State under the following
circumstances:

5 (a) The use, in this State, of property acquired outside 
6this State
by a nonresident individual and brought into this 
7State by the
individual for his or her own use while 
8temporarily within this State or
while passing through this 
9State.

10 (b) The use, in this State, of property that is
acquired 
11outside
this State and that is moved into this State for use as 
12rolling stock
moving in interstate commerce.

13 (c) The use, in this State, of property that is acquired 
14outside
this State and caused to be brought into this State by 
15a person who has
already paid a tax in another state in respect 
16to the sale, purchase, or
use of that property, to the extent 
17of the amount of the tax properly
due and paid in the other 
18state.

19 (d) The temporary storage, in this State, of property that 
20is
acquired outside this State and that after being brought 
21into
this State and stored here temporarily, is used solely 
22outside this
State or is physically attached to or incorporated 
23into other property
that is used solely outside this State, or 
24is altered by converting,
fabricating, manufacturing, 
25printing, processing, or shaping, and, as
altered, is used 
26solely outside this State.

 
 
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1 (e) Beginning July 1, 1999, the use, in this State, of fuel 
2acquired
outside this State and brought into this State in the 
3fuel supply
tanks of locomotives engaged in freight hauling and 
4passenger service for
interstate commerce. This subsection is 
5exempt from the provisions of Section
3-75.

6 (f) Beginning on January 1, 2002 and through June 30, 2016, 
7and beginning again on the first day of the first month to 
8occur on or after the effective date of this amendatory Act of 
9the 100th General Assembly and through June 30, 2021, the use 
10of tangible personal property
purchased from an Illinois 
11retailer by a taxpayer engaged in centralized
purchasing 
12activities in Illinois who will, upon receipt of the property 
13in
Illinois, temporarily store the property in Illinois (i) for 
14the purpose of
subsequently transporting it outside this State 
15for use or consumption
thereafter solely outside this State or 
16(ii) for the purpose of being
processed, fabricated, or 
17manufactured into, attached to, or incorporated into
other 
18tangible personal property to be transported outside this State 
19and
thereafter used or consumed solely outside this State. The 
20Director of Revenue
shall, pursuant to rules adopted in 
21accordance with the Illinois Administrative
Procedure Act, 
22issue a permit to any taxpayer in good standing with the

23Department who is eligible for the exemption under this 
24subsection (f). The
permit issued under this subsection (f) 
25shall authorize the holder, to the
extent and in the manner 
26specified in the rules adopted under this Act, to
purchase 
 
 
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1tangible personal property from a retailer exempt from the 
2taxes
imposed by this Act. Taxpayers shall maintain all 
3necessary books and records
to substantiate the use and 
4consumption of all such tangible personal property
outside of 
5the State of Illinois.

6(Source: P.A. 97-73, eff. 6-30-11.)


7 Section 15. The Service Occupation Tax Act is amended by 
8changing Section 3-5 as follows:



9 (35 ILCS 115/3-5)


10 Sec. 3-5. Exemptions. The following tangible personal 
11property is
exempt from the tax imposed by this Act:

12 (1) Personal property sold by a corporation, society, 
13association,
foundation, institution, or organization, other 
14than a limited liability
company, that is organized and 
15operated as a not-for-profit service enterprise
for the benefit 
16of persons 65 years of age or older if the personal property

17was not purchased by the enterprise for the purpose of resale 
18by the
enterprise.

19 (2) Personal property purchased by a not-for-profit 
20Illinois county fair
association for use in conducting, 
21operating, or promoting the county fair.

22 (3) Personal property purchased by any not-for-profit
arts 
23or cultural organization that establishes, by proof required by 
24the
Department by
rule, that it has received an exemption under 
 
 
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1Section 501(c)(3) of the
Internal Revenue Code and that is 
2organized and operated primarily for the
presentation
or 
3support of arts or cultural programming, activities, or 
4services. These
organizations include, but are not limited to, 
5music and dramatic arts
organizations such as symphony 
6orchestras and theatrical groups, arts and
cultural service 
7organizations, local arts councils, visual arts organizations,

8and media arts organizations.
On and after the effective date 
9of this amendatory Act of the 92nd General
Assembly, however, 
10an entity otherwise eligible for this exemption shall not
make 
11tax-free purchases unless it has an active identification 
12number issued by
the Department.

13 (4) Legal tender, currency, medallions, or gold or silver 
14coinage
issued by the State of Illinois, the government of the 
15United States of
America, or the government of any foreign 
16country, and bullion.

17 (5) Until July 1, 2003 and beginning again on September 1, 
182004 through August 30, 2014, graphic arts machinery and 
19equipment, including
repair and
replacement parts, both new and 
20used, and including that manufactured on
special order or 
21purchased for lease, certified by the purchaser to be used

22primarily for graphic arts production.
Equipment includes 
23chemicals or chemicals acting as catalysts but only if
the

24chemicals or chemicals acting as catalysts effect a direct and 
25immediate change
upon a graphic arts product.

26 (6) Personal property sold by a teacher-sponsored student 
 
 
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1organization
affiliated with an elementary or secondary school 
2located in Illinois.

3 (7) Farm machinery and equipment, both new and used, 
4including that
manufactured on special order, certified by the 
5purchaser to be used
primarily for production agriculture or 
6State or federal agricultural
programs, including individual 
7replacement parts for the machinery and
equipment, including 
8machinery and equipment purchased for lease,
and including 
9implements of husbandry defined in Section 1-130 of
the 
10Illinois Vehicle Code, farm machinery and agricultural 
11chemical and
fertilizer spreaders, and nurse wagons required to 
12be registered
under Section 3-809 of the Illinois Vehicle Code,

13but
excluding other motor vehicles required to be registered 
14under the Illinois
Vehicle
Code.
Horticultural polyhouses or 
15hoop houses used for propagating, growing, or
overwintering 
16plants shall be considered farm machinery and equipment under

17this item (7).
Agricultural chemical tender tanks and dry boxes 
18shall include units sold
separately from a motor vehicle 
19required to be licensed and units sold mounted
on a motor 
20vehicle required to be licensed if the selling price of the 
21tender
is separately stated.

22 Farm machinery and equipment shall include precision 
23farming equipment
that is
installed or purchased to be 
24installed on farm machinery and equipment
including, but not 
25limited to, tractors, harvesters, sprayers, planters,
seeders, 
26or spreaders.
Precision farming equipment includes, but is not 
 
 
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1limited to,
soil testing sensors, computers, monitors, 
2software, global positioning
and mapping systems, and other 
3such equipment.

4 Farm machinery and equipment also includes computers, 
5sensors, software, and
related equipment used primarily in the

6computer-assisted operation of production agriculture 
7facilities, equipment,
and activities such as, but
not limited 
8to,
the collection, monitoring, and correlation of
animal and 
9crop data for the purpose of
formulating animal diets and 
10agricultural chemicals. This item (7) is exempt
from the 
11provisions of
Section 3-55.

12 (8) Until June 30, 2013, fuel and petroleum products sold 
13to or used by an air common
carrier, certified by the carrier 
14to be used for consumption, shipment,
or storage in the conduct 
15of its business as an air common carrier, for
a flight destined 
16for or returning from a location or locations
outside the 
17United States without regard to previous or subsequent domestic

18stopovers.

19 Beginning July 1, 2013, fuel and petroleum products sold to 
20or used by an air carrier, certified by the carrier to be used 
21for consumption, shipment, or storage in the conduct of its 
22business as an air common carrier, for a flight that (i) is 
23engaged in foreign trade or is engaged in trade between the 
24United States and any of its possessions and (ii) transports at 
25least one individual or package for hire from the city of 
26origination to the city of final destination on the same 
 
 
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1aircraft, without regard to a change in the flight number of 
2that aircraft. 
3 (9) Proceeds of mandatory service charges separately

4stated on customers' bills for the purchase and consumption of 
5food and
beverages, to the extent that the proceeds of the 
6service charge are in fact
turned over as tips or as a 
7substitute for tips to the employees who
participate directly 
8in preparing, serving, hosting or cleaning up the
food or 
9beverage function with respect to which the service charge is 
10imposed.

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

17drilling, and production equipment, and (vi) machinery and 
18equipment purchased
for lease; but
excluding motor vehicles 
19required to be registered under the Illinois
Vehicle Code.

20 (11) Photoprocessing machinery and equipment, including 
21repair and
replacement parts, both new and used, including that 
22manufactured on
special order, certified by the purchaser to be 
23used primarily for
photoprocessing, and including 
24photoprocessing machinery and equipment
purchased for lease.

25 (12) Coal and aggregate exploration, mining, off-highway 
26hauling,
processing,
maintenance, and reclamation equipment, 
 
 
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1including
replacement parts and equipment, and including

2equipment
purchased for lease, but excluding motor vehicles 
3required to be registered
under the Illinois Vehicle Code. The 
4changes made to this Section by Public Act 97-767 apply on and 
5after July 1, 2003, but no claim for credit or refund is 
6allowed on or after August 16, 2013 (the effective date of 
7Public Act 98-456)
for such taxes paid during the period 
8beginning July 1, 2003 and ending on August 16, 2013 (the 
9effective date of Public Act 98-456).

10 (13) Beginning January 1, 1992 and through June 30, 2016, 
11food for human consumption that is to be consumed off the 
12premises
where it is sold (other than alcoholic beverages, soft 
13drinks and food that
has been prepared for immediate 
14consumption) and prescription and
non-prescription medicines, 
15drugs, medical appliances, and insulin, urine
testing 
16materials, syringes, and needles used by diabetics, for human 
17use,
when purchased for use by a person receiving medical 
18assistance under
Article V of the Illinois Public Aid Code who 
19resides in a licensed
long-term care facility, as defined in 
20the Nursing Home Care Act, or in a licensed facility as defined 
21in the ID/DD Community Care Act, the MC/DD Act, or the 
22Specialized Mental Health Rehabilitation Act of 2013.

23 (14) Semen used for artificial insemination of livestock 
24for direct
agricultural production.

25 (15) Horses, or interests in horses, registered with and 
26meeting the
requirements of any of the
Arabian Horse Club 
 
 
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1Registry of America, Appaloosa Horse Club, American Quarter

2Horse Association, United States
Trotting Association, or 
3Jockey Club, as appropriate, used for
purposes of breeding or 
4racing for prizes. This item (15) is exempt from the provisions 
5of Section 3-55, and the exemption provided for under this item 
6(15) applies for all periods beginning May 30, 1995, but no 
7claim for credit or refund is allowed on or after January 1, 
82008 (the effective date of Public Act 95-88)
for such taxes 
9paid during the period beginning May 30, 2000 and ending on 
10January 1, 2008 (the effective date of Public Act 95-88).

11 (16) Computers and communications equipment utilized for 
12any
hospital
purpose
and equipment used in the diagnosis,

13analysis, or treatment of hospital patients sold to a lessor 
14who leases the
equipment, under a lease of one year or longer 
15executed or in effect at the
time of the purchase, to a

16hospital
that has been issued an active tax exemption 
17identification number by the
Department under Section 1g of the 
18Retailers' Occupation Tax Act.

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

20property, under a
lease of one year or longer executed or in 
21effect at the time of the purchase,
to a governmental body
that 
22has been issued an active tax exemption identification number 
23by the
Department under Section 1g of the Retailers' Occupation 
24Tax Act.

25 (18) Beginning with taxable years ending on or after 
26December
31, 1995
and
ending with taxable years ending on or 
 
 
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1before December 31, 2004,
personal property that is
donated for 
2disaster relief to be used in a State or federally declared

3disaster area in Illinois or bordering Illinois by a 
4manufacturer or retailer
that is registered in this State to a 
5corporation, society, association,
foundation, or institution 
6that has been issued a sales tax exemption
identification 
7number by the Department that assists victims of the disaster

8who reside within the declared disaster area.

9 (19) Beginning with taxable years ending on or after 
10December
31, 1995 and
ending with taxable years ending on or 
11before December 31, 2004, personal
property that is used in the 
12performance of infrastructure repairs in this
State, including 
13but not limited to municipal roads and streets, access roads,

14bridges, sidewalks, waste disposal systems, water and sewer 
15line extensions,
water distribution and purification 
16facilities, storm water drainage and
retention facilities, and 
17sewage treatment facilities, resulting from a State
or 
18federally declared disaster in Illinois or bordering Illinois 
19when such
repairs are initiated on facilities located in the 
20declared disaster area
within 6 months after the disaster.

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

23in the
Wildlife Code. This paragraph is exempt from the 
24provisions
of
Section 3-55.

25 (21) A motor vehicle, as that term is defined in Section 
261-146
of the
Illinois Vehicle Code, that is donated to a 
 
 
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1corporation, limited liability
company, society, association, 
2foundation, or institution that is determined by
the Department 
3to be organized and operated exclusively for educational

4purposes. For purposes of this exemption, "a corporation, 
5limited liability
company, society, association, foundation, 
6or institution organized and
operated
exclusively for 
7educational purposes" means all tax-supported public schools,

8private schools that offer systematic instruction in useful 
9branches of
learning by methods common to public schools and 
10that compare favorably in
their scope and intensity with the 
11course of study presented in tax-supported
schools, and 
12vocational or technical schools or institutes organized and

13operated exclusively to provide a course of study of not less 
14than 6 weeks
duration and designed to prepare individuals to 
15follow a trade or to pursue a
manual, technical, mechanical, 
16industrial, business, or commercial
occupation.

17 (22) Beginning January 1, 2000, personal property, 
18including
food,
purchased through fundraising
events for the 
19benefit of
a public or private elementary or
secondary school, 
20a group of those schools, or one or more school
districts if 
21the events are
sponsored by an entity recognized by the school 
22district that consists
primarily of volunteers and includes

23parents and teachers of the school children. This paragraph 
24does not apply
to fundraising
events (i) for the benefit of 
25private home instruction or (ii)
for which the fundraising 
26entity purchases the personal property sold at
the events from 
 
 
SB1803- 21 -LRB100 05622 HLH 15636 b


1another individual or entity that sold the property for the

2purpose of resale by the fundraising entity and that
profits 
3from the sale to the
fundraising entity. This paragraph is 
4exempt
from the provisions
of Section 3-55.

5 (23) Beginning January 1, 2000
and through December 31, 
62001, new or used automatic vending
machines that prepare and 
7serve hot food and beverages, including coffee, soup,
and
other 
8items, and replacement parts for these machines.
Beginning 
9January 1,
2002 and through June 30, 2003, machines and parts 
10for
machines used in commercial, coin-operated amusement
and 
11vending business if a use or occupation tax is paid on the 
12gross receipts
derived from
the use of the commercial, 
13coin-operated amusement and vending machines.
This paragraph 
14is exempt from the provisions of Section 3-55.

15 (24) Beginning
on the effective date of this amendatory Act 
16of the 92nd General Assembly,
computers and communications 
17equipment
utilized for any hospital purpose and equipment used 
18in the diagnosis,
analysis, or treatment of hospital patients 
19sold to a lessor who leases the
equipment, under a lease of one 
20year or longer executed or in effect at the
time of the 
21purchase, to a hospital that has been issued an active tax

22exemption identification number by the Department under 
23Section 1g of the
Retailers' Occupation Tax Act. This paragraph 
24is exempt from the provisions of
Section 3-55.

25 (25) Beginning
on the effective date of this amendatory Act 
26of the 92nd General Assembly,
personal property sold to a 
 
 
SB1803- 22 -LRB100 05622 HLH 15636 b


1lessor who
leases the property, under a lease of one year or 
2longer executed or in effect
at the time of the purchase, to a 
3governmental body that has been issued an
active tax exemption 
4identification number by the Department under Section 1g
of the 
5Retailers' Occupation Tax Act. This paragraph is exempt from 
6the
provisions of Section 3-55.

7 (26) Beginning on January 1, 2002 and through June 30, 
82016, and beginning again on the first day of the first month 
9to occur on or after the effective date of this amendatory Act 
10of the 100th General Assembly and through June 30, 2021, 
11tangible personal property
purchased
from an Illinois retailer 
12by a taxpayer engaged in centralized purchasing
activities in 
13Illinois who will, upon receipt of the property in Illinois,

14temporarily store the property in Illinois (i) for the purpose 
15of subsequently
transporting it outside this State for use or 
16consumption thereafter solely
outside this State or (ii) for 
17the purpose of being processed, fabricated, or
manufactured 
18into, attached to, or incorporated into other tangible personal

19property to be transported outside this State and thereafter 
20used or consumed
solely outside this State. The Director of 
21Revenue shall, pursuant to rules
adopted in accordance with the 
22Illinois Administrative Procedure Act, issue a
permit to any 
23taxpayer in good standing with the Department who is eligible 
24for
the exemption under this paragraph (26). The permit issued 
25under
this paragraph (26) shall authorize the holder, to the 
26extent and
in the manner specified in the rules adopted under 
 
 
SB1803- 23 -LRB100 05622 HLH 15636 b


1this Act, to purchase
tangible personal property from a 
2retailer exempt from the taxes imposed by
this Act. Taxpayers 
3shall maintain all necessary books and records to
substantiate 
4the use and consumption of all such tangible personal property

5outside of the State of Illinois.

6 (27) Beginning January 1, 2008, tangible personal property 
7used in the construction or maintenance of a community water 
8supply, as defined under Section 3.145 of the Environmental 
9Protection Act, that is operated by a not-for-profit 
10corporation that holds a valid water supply permit issued under 
11Title IV of the Environmental Protection Act. This paragraph is 
12exempt from the provisions of Section 3-55.

13 (28) Tangible personal property sold to a 
14public-facilities corporation, as described in Section 
1511-65-10 of the Illinois Municipal Code, for purposes of 
16constructing or furnishing a municipal convention hall, but 
17only if the legal title to the municipal convention hall is 
18transferred to the municipality without any further 
19consideration by or on behalf of the municipality at the time 
20of the completion of the municipal convention hall or upon the 
21retirement or redemption of any bonds or other debt instruments 
22issued by the public-facilities corporation in connection with 
23the development of the municipal convention hall. This 
24exemption includes existing public-facilities corporations as 
25provided in Section 11-65-25 of the Illinois Municipal Code. 
26This paragraph is exempt from the provisions of Section 3-55. 
 
 
SB1803- 24 -LRB100 05622 HLH 15636 b


1 (29) Beginning January 1, 2010, materials, parts, 
2equipment, components, and furnishings incorporated into or 
3upon an aircraft as part of the modification, refurbishment, 
4completion, replacement, repair, or maintenance of the 
5aircraft. This exemption includes consumable supplies used in 
6the modification, refurbishment, completion, replacement, 
7repair, and maintenance of aircraft, but excludes any 
8materials, parts, equipment, components, and consumable 
9supplies used in the modification, replacement, repair, and 
10maintenance of aircraft engines or power plants, whether such 
11engines or power plants are installed or uninstalled upon any 
12such aircraft. "Consumable supplies" include, but are not 
13limited to, adhesive, tape, sandpaper, general purpose 
14lubricants, cleaning solution, latex gloves, and protective 
15films. This exemption applies only to the transfer of 
16qualifying tangible personal property incident to the 
17modification, refurbishment, completion, replacement, repair, 
18or maintenance of an aircraft by persons who (i) hold an Air 
19Agency Certificate and are empowered to operate an approved 
20repair station by the Federal Aviation Administration, (ii) 
21have a Class IV Rating, and (iii) conduct operations in 
22accordance with Part 145 of the Federal Aviation Regulations. 
23The exemption does not include aircraft operated by a 
24commercial air carrier providing scheduled passenger air 
25service pursuant to authority issued under Part 121 or Part 129 
26of the Federal Aviation Regulations. The changes made to this 
 
 
SB1803- 25 -LRB100 05622 HLH 15636 b


1paragraph (29) by Public Act 98-534 are declarative of existing 
2law. 
3 (30) Beginning January 1, 2017, menstrual pads, tampons, 
4and menstrual cups. 
5(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; 
698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. 
77-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)


8 Section 20. The Retailers' Occupation Tax Act is amended by 
9changing Section 2-5 as follows:



10 (35 ILCS 120/2-5)


11 Sec. 2-5. Exemptions. Gross receipts from proceeds from the 
12sale of
the following tangible personal property are exempt 
13from the tax imposed
by this Act:

14 (1) Farm chemicals.

15 (2) Farm machinery and equipment, both new and used, 
16including that
manufactured on special order, certified by the 
17purchaser to be used
primarily for production agriculture or 
18State or federal agricultural
programs, including individual 
19replacement parts for the machinery and
equipment, including 
20machinery and equipment purchased for lease,
and including 
21implements of husbandry defined in Section 1-130 of
the 
22Illinois Vehicle Code, farm machinery and agricultural 
23chemical and
fertilizer spreaders, and nurse wagons required to 
24be registered
under Section 3-809 of the Illinois Vehicle Code,

 
 
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1but
excluding other motor vehicles required to be registered 
2under the Illinois
Vehicle Code.
Horticultural polyhouses or 
3hoop houses used for propagating, growing, or
overwintering 
4plants shall be considered farm machinery and equipment under

5this item (2).
Agricultural chemical tender tanks and dry boxes 
6shall include units sold
separately from a motor vehicle 
7required to be licensed and units sold mounted
on a motor 
8vehicle required to be licensed, if the selling price of the 
9tender
is separately stated.

10 Farm machinery and equipment shall include precision 
11farming equipment
that is
installed or purchased to be 
12installed on farm machinery and equipment
including, but not 
13limited to, tractors, harvesters, sprayers, planters,
seeders, 
14or spreaders.
Precision farming equipment includes, but is not 
15limited to,
soil testing sensors, computers, monitors, 
16software, global positioning
and mapping systems, and other 
17such equipment.

18 Farm machinery and equipment also includes computers, 
19sensors, software, and
related equipment used primarily in the

20computer-assisted operation of production agriculture 
21facilities, equipment,
and activities such as, but
not limited 
22to,
the collection, monitoring, and correlation of
animal and 
23crop data for the purpose of
formulating animal diets and 
24agricultural chemicals. This item (2) is exempt
from the 
25provisions of
Section 2-70.

26 (3) Until July 1, 2003, distillation machinery and 
 
 
SB1803- 27 -LRB100 05622 HLH 15636 b


1equipment, sold as a
unit or kit,
assembled or installed by the 
2retailer, certified by the user to be used
only for the 
3production of ethyl alcohol that will be used for consumption

4as motor fuel or as a component of motor fuel for the personal 
5use of the
user, and not subject to sale or resale.

6 (4) Until July 1, 2003 and beginning again September 1, 
72004 through August 30, 2014, graphic arts machinery and 
8equipment, including
repair and
replacement parts, both new and 
9used, and including that manufactured on
special order or 
10purchased for lease, certified by the purchaser to be used

11primarily for graphic arts production.
Equipment includes 
12chemicals or
chemicals acting as catalysts but only if
the 
13chemicals or chemicals acting as catalysts effect a direct and 
14immediate
change upon a
graphic arts product.

15 (5) A motor vehicle that is used for automobile renting, as 
16defined in the Automobile Renting Occupation and Use Tax Act. 
17This paragraph is exempt from
the provisions of Section 2-70.

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

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

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

 
 
SB1803- 28 -LRB100 05622 HLH 15636 b


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

11and media arts organizations.
On and after the effective date 
12of this amendatory Act of the 92nd General
Assembly, however, 
13an entity otherwise eligible for this exemption shall not
make 
14tax-free purchases unless it has an active identification 
15number issued by
the Department.

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

21was not purchased by the enterprise for the purpose of resale 
22by the
enterprise.

23 (11) Personal property sold to a governmental body, to a 
24corporation,
society, association, foundation, or institution 
25organized and operated
exclusively for charitable, religious, 
26or educational purposes, or to a
not-for-profit corporation, 
 
 
SB1803- 29 -LRB100 05622 HLH 15636 b


1society, association, foundation, institution,
or organization 
2that has no compensated officers or employees and that is

3organized and operated primarily for the recreation of persons 
455 years of
age or older. A limited liability company may 
5qualify for the exemption under
this paragraph only if the 
6limited liability company is organized and operated

7exclusively for educational purposes. On and after July 1, 
81987, however, no
entity otherwise eligible for this exemption 
9shall make tax-free purchases
unless it has an active 
10identification number issued by the Department.

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

16commerce and equipment operated by a telecommunications 
17provider, licensed as a
common carrier by the Federal 
18Communications Commission, which is permanently
installed in 
19or affixed to aircraft moving in interstate commerce.

20 (12-5) On and after July 1, 2003 and through June 30, 2004, 
21motor vehicles of the second division
with a gross vehicle 
22weight in excess of 8,000 pounds
that
are
subject to the 
23commercial distribution fee imposed under Section 3-815.1 of

24the Illinois
Vehicle Code. Beginning on July 1, 2004 and 
25through June 30, 2005, the use in this State of motor vehicles 
26of the second division: (i) with a gross vehicle weight rating 
 
 
SB1803- 30 -LRB100 05622 HLH 15636 b


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


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

13tangible personal property that is utilized by interstate 
14carriers for
hire for use as rolling stock moving in interstate 
15commerce
and equipment operated by a telecommunications 
16provider, licensed as a
common carrier by the Federal 
17Communications Commission, which is
permanently installed in 
18or affixed to aircraft moving in interstate commerce.

19 (14) Machinery and equipment that will be used by the 
20purchaser, or a
lessee of the purchaser, primarily in the 
21process of manufacturing or
assembling tangible personal 
22property for wholesale or retail sale or
lease, whether the 
23sale or lease is made directly by the manufacturer or by
some 
24other person, whether the materials used in the process are 
25owned by
the manufacturer or some other person, or whether the 
26sale or lease is made
apart from or as an incident to the 
 
 
SB1803- 31 -LRB100 05622 HLH 15636 b


1seller's engaging in the service
occupation of producing 
2machines, tools, dies, jigs, patterns, gauges, or
other similar 
3items of no commercial value on special order for a particular

4purchaser. The exemption provided by this paragraph (14) does 
5not include machinery and equipment used in (i) the generation 
6of electricity for wholesale or retail sale; (ii) the 
7generation or treatment of natural or artificial gas for 
8wholesale or retail sale that is delivered to customers through 
9pipes, pipelines, or mains; or (iii) the treatment of water for 
10wholesale or retail sale that is delivered to customers through 
11pipes, pipelines, or mains. The provisions of Public Act 98-583 
12are declaratory of existing law as to the meaning and scope of 
13this exemption.

14 (15) Proceeds of mandatory service charges separately 
15stated on
customers' bills for purchase and consumption of food 
16and beverages, to the
extent that the proceeds of the service 
17charge are in fact turned over as
tips or as a substitute for 
18tips to the employees who participate directly
in preparing, 
19serving, hosting or cleaning up the food or beverage function

20with respect to which the service charge is imposed. 

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

22is prohibited by federal law from charging tax to the 
23purchaser.

24 (17) Tangible personal property sold to a common carrier by 
25rail or
motor that
receives the physical possession of the 
26property in Illinois and that
transports the property, or 
 
 
SB1803- 32 -LRB100 05622 HLH 15636 b


1shares with another common carrier in the
transportation of the 
2property, out of Illinois on a standard uniform bill
of lading 
3showing the seller of the property as the shipper or consignor 
4of
the property to a destination outside Illinois, for use 
5outside Illinois.

6 (18) Legal tender, currency, medallions, or gold or silver 
7coinage
issued by the State of Illinois, the government of the 
8United States of
America, or the government of any foreign 
9country, and bullion.

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

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

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

24 (21) Coal and aggregate exploration, mining, off-highway 
25hauling,
processing,
maintenance, and reclamation equipment, 
26including
replacement parts and equipment, and including

 
 
SB1803- 33 -LRB100 05622 HLH 15636 b


1equipment purchased for lease, but excluding motor vehicles 
2required to be
registered under the Illinois Vehicle Code. The 
3changes made to this Section by Public Act 97-767 apply on and 
4after July 1, 2003, but no claim for credit or refund is 
5allowed on or after August 16, 2013 (the effective date of 
6Public Act 98-456)
for such taxes paid during the period 
7beginning July 1, 2003 and ending on August 16, 2013 (the 
8effective date of Public Act 98-456).

9 (22) Until June 30, 2013, fuel and petroleum products sold 
10to or used by an air carrier,
certified by the carrier to be 
11used for consumption, shipment, or storage
in the conduct of 
12its business as an air common carrier, for a flight
destined 
13for or returning from a location or locations
outside the 
14United States without regard to previous or subsequent domestic

15stopovers.

16 Beginning July 1, 2013, fuel and petroleum products sold to 
17or used by an air carrier, certified by the carrier to be used 
18for consumption, shipment, or storage in the conduct of its 
19business as an air common carrier, for a flight that (i) is 
20engaged in foreign trade or is engaged in trade between the 
21United States and any of its possessions and (ii) transports at 
22least one individual or package for hire from the city of 
23origination to the city of final destination on the same 
24aircraft, without regard to a change in the flight number of 
25that aircraft. 
26 (23) A transaction in which the purchase order is received 
 
 
SB1803- 34 -LRB100 05622 HLH 15636 b


1by a florist
who is located outside Illinois, but who has a 
2florist located in Illinois
deliver the property to the 
3purchaser or the purchaser's donee in Illinois.

4 (24) Fuel consumed or used in the operation of ships, 
5barges, or vessels
that are used primarily in or for the 
6transportation of property or the
conveyance of persons for 
7hire on rivers bordering on this State if the
fuel is delivered 
8by the seller to the purchaser's barge, ship, or vessel
while 
9it is afloat upon that bordering river.

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

11motor vehicle sold in this State to a nonresident even though 
12the
motor vehicle is delivered to the nonresident in this 
13State, if the motor
vehicle is not to be titled in this State, 
14and if a drive-away permit
is issued to the motor vehicle as 
15provided in Section 3-603 of the Illinois
Vehicle Code or if 
16the nonresident purchaser has vehicle registration
plates to 
17transfer to the motor vehicle upon returning to his or her home

18state. The issuance of the drive-away permit or having
the

19out-of-state registration plates to be transferred is prima 
20facie evidence
that the motor vehicle will not be titled in 
21this State.

22 (25-5) The exemption under item (25) does not apply if the 
23state in which the motor vehicle will be titled does not allow 
24a reciprocal exemption for a motor vehicle sold and delivered 
25in that state to an Illinois resident but titled in Illinois. 
26The tax collected under this Act on the sale of a motor vehicle 
 
 
SB1803- 35 -LRB100 05622 HLH 15636 b


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

24 (25-7) Beginning on July 1, 2007, no tax is imposed under 
25this Act on the sale of an aircraft, as defined in Section 3 of 
26the Illinois Aeronautics Act, if all of the following 
 
 
SB1803- 36 -LRB100 05622 HLH 15636 b


1conditions are met:
2  (1) the aircraft leaves this State within 15 days after 
3 the later of either the issuance of the final billing for 
4 the sale of the aircraft, or the authorized approval for 
5 return to service, completion of the maintenance record 
6 entry, and completion of the test flight and ground test 
7 for inspection, as required by 14 C.F.R. 91.407;
8  (2) the aircraft is not based or registered in this 
9 State after the sale of the aircraft; and
10  (3) the seller retains in his or her books and records 
11 and provides to the Department a signed and dated 
12 certification from the purchaser, on a form prescribed by 
13 the Department, certifying that the requirements of this 
14 item (25-7) are met. The certificate must also include the 
15 name and address of the purchaser, the address of the 
16 location where the aircraft is to be titled or registered, 
17 the address of the primary physical location of the 
18 aircraft, and other information that the Department may 
19 reasonably require.
20 For purposes of this item (25-7):
21 "Based in this State" means hangared, stored, or otherwise 
22used, excluding post-sale customizations as defined in this 
23Section, for 10 or more days in each 12-month period 
24immediately following the date of the sale of the aircraft.
25 "Registered in this State" means an aircraft registered 
26with the Department of Transportation, Aeronautics Division, 
 
 
SB1803- 37 -LRB100 05622 HLH 15636 b


1or titled or registered with the Federal Aviation 
2Administration to an address located in this State.
3 This paragraph (25-7) is exempt from the provisions
of

4Section 2-70.

5 (26) Semen used for artificial insemination of livestock 
6for direct
agricultural production.

7 (27) Horses, or interests in horses, registered with and 
8meeting the
requirements of any of the
Arabian Horse Club 
9Registry of America, Appaloosa Horse Club, American Quarter

10Horse Association, United States
Trotting Association, or 
11Jockey Club, as appropriate, used for
purposes of breeding or 
12racing for prizes. This item (27) is exempt from the provisions 
13of Section 2-70, and the exemption provided for under this item 
14(27) applies for all periods beginning May 30, 1995, but no 
15claim for credit or refund is allowed on or after January 1, 
162008 (the effective date of Public Act 95-88)
for such taxes 
17paid during the period beginning May 30, 2000 and ending on 
18January 1, 2008 (the effective date of Public Act 95-88).

19 (28) Computers and communications equipment utilized for 
20any
hospital
purpose
and equipment used in the diagnosis,

21analysis, or treatment of hospital patients sold to a lessor 
22who leases the
equipment, under a lease of one year or longer 
23executed or in effect at the
time of the purchase, to a

24hospital
that has been issued an active tax exemption 
25identification number by the
Department under Section 1g of 
26this Act.

 
 
SB1803- 38 -LRB100 05622 HLH 15636 b


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

2property, under a
lease of one year or longer executed or in 
3effect at the time of the purchase,
to a governmental body
that 
4has been issued an active tax exemption identification number 
5by the
Department under Section 1g of this Act.

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

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

15who reside within the declared disaster area.

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

21bridges, sidewalks, waste disposal systems, water and sewer 
22line extensions,
water distribution and purification 
23facilities, storm water drainage and
retention facilities, and 
24sewage treatment facilities, resulting from a State
or 
25federally declared disaster in Illinois or bordering Illinois 
26when such
repairs are initiated on facilities located in the 
 
 
SB1803- 39 -LRB100 05622 HLH 15636 b


1declared disaster area
within 6 months after the disaster.

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

4in the
Wildlife Code. This paragraph is exempt from the 
5provisions
of
Section 2-70.

6 (33) A motor vehicle, as that term is defined in Section 
71-146
of the
Illinois Vehicle Code, that is donated to a 
8corporation, limited liability
company, society, association, 
9foundation, or institution that is determined by
the Department 
10to be organized and operated exclusively for educational

11purposes. For purposes of this exemption, "a corporation, 
12limited liability
company, society, association, foundation, 
13or institution organized and
operated
exclusively for 
14educational purposes" means all tax-supported public schools,

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

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

24 (34) Beginning January 1, 2000, personal property, 
25including food, purchased
through fundraising events for the 
26benefit of a public or private elementary or
secondary school, 
 
 
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1a group of those schools, or one or more school districts if

2the events are sponsored by an entity recognized by the school 
3district that
consists primarily of volunteers and includes 
4parents and teachers of the
school children. This paragraph 
5does not apply to fundraising events (i) for
the benefit of 
6private home instruction or (ii) for which the fundraising

7entity purchases the personal property sold at the events from 
8another
individual or entity that sold the property for the 
9purpose of resale by the
fundraising entity and that profits 
10from the sale to the fundraising entity.
This paragraph is 
11exempt from the provisions of Section 2-70.

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

20coin-operated amusement and vending machines. This paragraph 
21is exempt from
the provisions of Section 2-70.

22 (35-5) Beginning August 23, 2001 and through June 30, 2016, 
23food for human consumption that is to be consumed off
the 
24premises where it is sold (other than alcoholic beverages, soft 
25drinks,
and food that has been prepared for immediate 
26consumption) and prescription
and nonprescription medicines, 
 
 
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1drugs, medical appliances, and insulin, urine
testing 
2materials, syringes, and needles used by diabetics, for human 
3use, when
purchased for use by a person receiving medical 
4assistance under Article V of
the Illinois Public Aid Code who 
5resides in a licensed long-term care facility,
as defined in 
6the Nursing Home Care Act, or a licensed facility as defined in 
7the ID/DD Community Care Act, the MC/DD Act, or the Specialized 
8Mental Health Rehabilitation Act of 2013.

9 (36) Beginning August 2, 2001, computers and 
10communications equipment
utilized for any hospital purpose and 
11equipment used in the diagnosis,
analysis, or treatment of 
12hospital patients sold to a lessor who leases the
equipment, 
13under a lease of one year or longer executed or in effect at 
14the
time of the purchase, to a hospital that has been issued an 
15active tax
exemption identification number by the Department 
16under Section 1g of this Act.
This paragraph is exempt from the 
17provisions of Section 2-70.

18 (37) Beginning August 2, 2001, personal property sold to a 
19lessor who
leases the property, under a lease of one year or 
20longer executed or in effect
at the time of the purchase, to a 
21governmental body that has been issued an
active tax exemption 
22identification number by the Department under Section 1g
of 
23this Act. This paragraph is exempt from the provisions of 
24Section 2-70.

25 (38) Beginning on January 1, 2002 and through June 30, 
262016, and beginning again on the first day of the first month 
 
 
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1to occur on or after the effective date of this amendatory Act 
2of the 100th General Assembly and through June 30, 2021, 
3tangible personal property purchased
from an Illinois retailer 
4by a taxpayer engaged in centralized purchasing
activities in 
5Illinois who will, upon receipt of the property in Illinois,

6temporarily store the property in Illinois (i) for the purpose 
7of subsequently
transporting it outside this State for use or 
8consumption thereafter solely
outside this State or (ii) for 
9the purpose of being processed, fabricated, or
manufactured 
10into, attached to, or incorporated into other tangible personal

11property to be transported outside this State and thereafter 
12used or consumed
solely outside this State. The Director of 
13Revenue shall, pursuant to rules
adopted in accordance with the 
14Illinois Administrative Procedure Act, issue a
permit to any 
15taxpayer in good standing with the Department who is eligible 
16for
the exemption under this paragraph (38). The permit issued 
17under
this paragraph (38) shall authorize the holder, to the 
18extent and
in the manner specified in the rules adopted under 
19this Act, to purchase
tangible personal property from a 
20retailer exempt from the taxes imposed by
this Act. Taxpayers 
21shall maintain all necessary books and records to
substantiate 
22the use and consumption of all such tangible personal property

23outside of the State of Illinois.

24 (39) Beginning January 1, 2008, tangible personal property 
25used in the construction or maintenance of a community water 
26supply, as defined under Section 3.145 of the Environmental 
 
 
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1Protection Act, that is operated by a not-for-profit 
2corporation that holds a valid water supply permit issued under 
3Title IV of the Environmental Protection Act. This paragraph is 
4exempt from the provisions of Section 2-70.

5 (40) Beginning January 1, 2010, materials, parts, 
6equipment, components, and furnishings incorporated into or 
7upon an aircraft as part of the modification, refurbishment, 
8completion, replacement, repair, or maintenance of the 
9aircraft. This exemption includes consumable supplies used in 
10the modification, refurbishment, completion, replacement, 
11repair, and maintenance of aircraft, but excludes any 
12materials, parts, equipment, components, and consumable 
13supplies used in the modification, replacement, repair, and 
14maintenance of aircraft engines or power plants, whether such 
15engines or power plants are installed or uninstalled upon any 
16such aircraft. "Consumable supplies" include, but are not 
17limited to, adhesive, tape, sandpaper, general purpose 
18lubricants, cleaning solution, latex gloves, and protective 
19films. This exemption applies only to the sale of qualifying 
20tangible personal property to persons who modify, refurbish, 
21complete, replace, or maintain an aircraft and who (i) hold an 
22Air Agency Certificate and are empowered to operate an approved 
23repair station by the Federal Aviation Administration, (ii) 
24have a Class IV Rating, and (iii) conduct operations in 
25accordance with Part 145 of the Federal Aviation Regulations. 
26The exemption does not include aircraft operated by a 
 
 
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1commercial air carrier providing scheduled passenger air 
2service pursuant to authority issued under Part 121 or Part 129 
3of the Federal Aviation Regulations. The changes made to this 
4paragraph (40) by Public Act 98-534 are declarative of existing 
5law.
6 (41) Tangible personal property sold to a 
7public-facilities corporation, as described in Section 
811-65-10 of the Illinois Municipal Code, for purposes of 
9constructing or furnishing a municipal convention hall, but 
10only if the legal title to the municipal convention hall is 
11transferred to the municipality without any further 
12consideration by or on behalf of the municipality at the time 
13of the completion of the municipal convention hall or upon the 
14retirement or redemption of any bonds or other debt instruments 
15issued by the public-facilities corporation in connection with 
16the development of the municipal convention hall. This 
17exemption includes existing public-facilities corporations as 
18provided in Section 11-65-25 of the Illinois Municipal Code. 
19This paragraph is exempt from the provisions of Section 2-70. 
20 (42) Beginning January 1, 2017, menstrual pads, tampons, 
21and menstrual cups. 
22(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; 
2398-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. 
241-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. 
257-29-15; 99-855, eff. 8-19-16.)



26 Section 99. Effective date. This Act takes effect upon 
 
 
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1becoming law.