§ 23-36. Imposed; state exemption for certain equipment for manufacture of personal property not to apply; exemption for farm machinery and equipment.
(a)
A tax is hereby imposed upon all persons engaged in this municipality in the business of making sales of service at the rate of one percent of the cost price of all tangible personal property transferred by such servicemen either in the form of tangible personal property or in the form of real estate as an incident to a sale of service.
(b)
The exclusion contained in section 2(e) of the "Service Occupation Tax Act" approved July 10, 1961, as amended, (Illinois Revised Statutes, chapter 120, section 439.102(e)) shall not apply to property within the city.
(c)
The sale of the following items of personal property shall, from and after the effective date of this ordinance [Ordinance No. 12-88], be exempt from the one percent Municipal Service Occupation Tax:
(1)
The proceeds from the sale of farm machinery and equipment, both new and used, and including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture, including any individual replacement part for such machinery and equipment and including in this exemption such machinery and equipment purchased for lease (chapter 120, section 441(a-1) Illinois Revised Statutes 1985, as amended).
(2)
The proceeds from the sale of machinery and equipment which shall be used by the purchaser or a lessee of the purchaser primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether such sale or lease is made directly by the manufacturer or by some other person, whether the material is used in the process or owned by the manufacturer or some other person, or whether such sale or lease is made apart from, or as an incident to, the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges or other similar items of no commercial value on special order for a particular purchaser (chapter 120, section 441(d) Illinois Revised Statutes 1985, as amended).
(Ord. No. 615, §§ I, VII, VIII, 9-2-69; Ord. No. 58-78, § I, 12-19-78; Ord. No. 25-81, § I, 6-2-81; Ord. No. 12-88, §§ 1, 2, 3-15-88)
Editor's note
Section 1 of Ord. No. 12-88, adopted March 15, 1988, repealed Ord. No. 25-81, passed June 2, 1981, which made inapplicable the exclusion in § 3 of the "Service Occupation Tax Act," and which was formerly included as paragraph (c) to § 23-36 above. Section 2 of said Ord. No. 12-88 has been codified herein as a new paragraph (c) at the editor's discretion.