§ 23-56. Imposed; exemption of farm machinery and equipment.

(a)

A tax is hereby imposed upon the privilege of using in the municipality any item of tangible personal property which is purchased outside this state at retail from a retailer, and which is titled or registered with an agency of the state government. The tax shall be at a rate of one percent of the selling price of such tangible property with selling price to have the meaning as defined in the Use Tax Act, approved July 14, 1955.

(b)

The sale of the following items of personal property shall, from and after the effective date of this ordinance [Ordinance No. 13-88], be exempt from the one percent Municipal Use 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 Statues 1985, as amended).

(Ord. No. 40-74, §§ 1, 5, 12-3-74; Ord. No. 26-81, § I, 6-2-81; Ord. No. 13-88, §§ 1, 2, 3-15-88)

Editor's note

Section 1 of Ord. No. 13-88, adopted March 15, 1988, repealed Ord. No. 26-81, passed June 2, 1981, which made inapplicable the exclusion contained in § 3 of the "Use Tax Act," and which was formerly included as paragraph (b) to § 23-56 above. Section 2 of said Ord. No. 13-88 has been codified herein as a new paragraph (b) at the discretion of the editor.