SB 2709 — REVENUE-SUNSET EXTENSIONS

SB2709 EngrossedEnrolled LRB094 17948 BDD 53251 b AN ACT concerning revenue.

On and after the effective date of this amendatory Act of the 92nd General Assembly, however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification SB2709 EngrossedEnrolled - 2 - LRB094 17948 BDD 53251 b number issued by the Department.

(10) A motor vehicle of the first division, a motor vehicle SB2709 EngrossedEnrolled - 3 - LRB094 17948 BDD 53251 b of the second division that is a self-contained motor vehicle designed or permanently converted to provide living quarters for recreational, camping, or travel use, with direct walk through to the living quarters from the driver’s seat, or a motor vehicle of the second division that is of the van configuration designed for the transportation of not less than 7 nor more than 16 passengers, as defined in Section 1-146 of the Illinois Vehicle Code, that is used for automobile renting, as defined in the Automobile Renting Occupation and Use Tax Act.

Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other SB2709 EngrossedEnrolled - 4 - LRB094 17948 BDD 53251 b such equipment.

(15) Photoprocessing machinery and equipment, including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be SB2709 EngrossedEnrolled - 5 - LRB094 17948 BDD 53251 b used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.

(21) Horses, or interests in horses, registered with and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or SB2709 EngrossedEnrolled - 6 - LRB094 17948 BDD 53251 b Jockey Club, as appropriate, used for purposes of breeding or racing for prizes.

If the property is leased in a manner that does not qualify for this exemption or used in any other non-exempt manner, the lessor shall be liable for the tax imposed under this Act or the Service Use Tax Act, as the case may be, based on the fair market value of the property at the time the SB2709 EngrossedEnrolled - 7 - LRB094 17948 BDD 53251 b non-qualifying use occurs.

This paragraph is exempt from SB2709 EngrossedEnrolled - 8 - LRB094 17948 BDD 53251 b the provisions of Section 3-90.

(29) Beginning January 1, 2000 and through December 31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other SB2709 EngrossedEnrolled - 9 - LRB094 17948 BDD 53251 b items, and replacement parts for these machines.

No lessor shall collect or attempt to collect an amount (however designated) that purports to reimburse that lessor for the tax imposed by this Act or the Service Use Tax Act, as the case may be, if the tax SB2709 EngrossedEnrolled - 10 - LRB094 17948 BDD 53251 b has not been paid by the lessor.

Beginning on July 1, 2004 and through June 30, 2005, the use in this State of SB2709 EngrossedEnrolled - 11 - LRB094 17948 BDD 53251 b motor vehicles of the second division:

(b) The use, in this State, of tangible personal property by an interstate carrier for hire as rolling stock moving in interstate commerce or by lessors under a lease of one year or longer executed or in effect at the time of purchase of tangible personal property by interstate carriers for-hire for use as rolling stock moving in interstate commerce as long as so used by the interstate carriers for-hire, and equipment operated by a telecommunications provider, licensed as a common SB2709 EngrossedEnrolled - 12 - LRB094 17948 BDD 53251 b carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.

(g) The use or purchase of tangible personal property by a common carrier by rail or motor that receives the physical possession of the property in Illinois, and that transports the property, or shares with another common carrier in the SB2709 EngrossedEnrolled - 13 - LRB094 17948 BDD 53251 b transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.

In addition, the retailer must retain a signed copy of the statement in his or SB2709 EngrossedEnrolled - 14 - LRB094 17948 BDD 53251 b her records.

Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of SB2709 EngrossedEnrolled - 15 - LRB094 17948 BDD 53251 b the State of Illinois.

SB2709 EngrossedEnrolled - 16 - LRB094 17948 BDD 53251 b (4) Legal tender, currency, medallions, or gold or silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.

Farm machinery and equipment shall include precision SB2709 EngrossedEnrolled - 17 - LRB094 17948 BDD 53251 b farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders.

(10) Until July 1, 2003, oil field exploration, drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any SB2709 EngrossedEnrolled - 18 - LRB094 17948 BDD 53251 b individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease;

If the equipment is leased in a manner that does not qualify for this exemption or is used in any other non-exempt manner, the lessor shall be liable for the tax imposed under this Act or the Use Tax Act, as the case may SB2709 EngrossedEnrolled - 19 - LRB094 17948 BDD 53251 b be, based on the fair market value of the property at the time the non-qualifying use occurs.

(17) Beginning with taxable years ending on or after December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a SB2709 EngrossedEnrolled - 20 - LRB094 17948 BDD 53251 b corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.

For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and SB2709 EngrossedEnrolled - 21 - LRB094 17948 BDD 53251 b operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.

(23) Beginning August 23, 2001 and through June 30, 2011, food Food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical SB2709 EngrossedEnrolled - 22 - LRB094 17948 BDD 53251 b assistance under Article 5 of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act.

If the property is leased in a manner that does not qualify for this exemption or is used in SB2709 EngrossedEnrolled - 23 - LRB094 17948 BDD 53251 b any other nonexempt manner, the lessor shall be liable for the tax imposed under this Act or the Use Tax Act, as the case may be, based on the fair market value of the property at the time the nonqualifying use occurs.

(c) The use, in this State, of property that is acquired outside this State and caused to be brought into this State by a person who has already paid a tax in another state in respect to the sale, purchase, or use of that property, to the extent of the amount of the tax properly due and paid in the other SB2709 EngrossedEnrolled - 24 - LRB094 17948 BDD 53251 b state.

Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of SB2709 EngrossedEnrolled - 25 - LRB094 17948 BDD 53251 b the State of Illinois.

(4) Legal tender, currency, medallions, or gold or silver SB2709 EngrossedEnrolled - 26 - LRB094 17948 BDD 53251 b coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.

Farm machinery and equipment shall include precision farming equipment that is installed or purchased to be SB2709 EngrossedEnrolled - 27 - LRB094 17948 BDD 53251 b installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders.

(10) Until July 1, 2003, oil field exploration, drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and SB2709 EngrossedEnrolled - 28 - LRB094 17948 BDD 53251 b equipment purchased for lease;

(16) Computers and communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer SB2709 EngrossedEnrolled - 29 - LRB094 17948 BDD 53251 b executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of the Retailers’ Occupation Tax Act.

(20) Beginning July 1, 1999, game or game birds sold at a "game breeding and hunting preserve area" or an "exotic game hunting area" as those terms are used in the Wildlife Code or at a hunting enclosure approved through rules adopted by the SB2709 EngrossedEnrolled - 30 - LRB094 17948 BDD 53251 b Department of Natural Resources.

(23) Beginning January 1, 2000 and through December 31, 2001, new or used automatic vending machines that prepare and SB2709 EngrossedEnrolled - 31 - LRB094 17948 BDD 53251 b serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines.

(26) Beginning on January 1, 2002 and through June 30, 2011, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State SB2709 EngrossedEnrolled - 32 - LRB094 17948 BDD 53251 b and thereafter used or consumed solely outside this State.

(2) Farm machinery and equipment, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, SB2709 EngrossedEnrolled - 33 - LRB094 17948 BDD 53251 b but excluding other motor vehicles required to be registered under the Illinois Vehicle Code.

(4) Until July 1, 2003 and beginning again September 1, 2004, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts SB2709 EngrossedEnrolled - 34 - LRB094 17948 BDD 53251 b production.

On and after the effective date of this amendatory Act of the 92nd General Assembly, however, SB2709 EngrossedEnrolled - 35 - LRB094 17948 BDD 53251 b an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.

(12-5) On and after July 1, 2003 and through June 30, 2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the SB2709 EngrossedEnrolled - 36 - LRB094 17948 BDD 53251 b commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code.

(15) Proceeds of mandatory service charges separately stated on customers’ bills for purchase and consumption of food SB2709 EngrossedEnrolled - 37 - LRB094 17948 BDD 53251 b and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.

(21) Until July 1, 2003, coal exploration, mining, offhighway hauling, processing, maintenance, and reclamation SB2709 EngrossedEnrolled - 38 - LRB094 17948 BDD 53251 b equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code.

SB2709 EngrossedEnrolled - 39 - LRB094 17948 BDD 53251 b The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state’s rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act.

(28) Computers and communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer SB2709 EngrossedEnrolled - 40 - LRB094 17948 BDD 53251 b executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.