Rep. Margaret Croke

Filed: 4/27/2023

 

 


 

 


 
10300HB2518ham002LRB103 28353 HLH 59175 a

1
AMENDMENT TO HOUSE BILL 2518

2    AMENDMENT NO. ______. Amend House Bill 2518 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts
4or cultural organization that establishes, by proof required
5by the Department by rule, that it has received an exemption
6under Section 501(c)(3) of the Internal Revenue Code and that
7is organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after July 1, 2001 (the
14effective date of Public Act 92-35), however, an entity
15otherwise eligible for this exemption shall not make tax-free
16purchases unless it has an active identification number issued
17by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active
5exemption identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new
12and used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon
18a graphic arts product. Beginning on July 1, 2017, graphic
19arts machinery and equipment is included in the manufacturing
20and assembling machinery and equipment exemption under
21paragraph (18).
22    (7) Farm chemicals.
23    (8) Legal tender, currency, medallions, or gold or silver
24coinage issued by the State of Illinois, the government of the
25United States of America, or the government of any foreign
26country, and bullion.

 

 

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1    (9) Personal property purchased from a teacher-sponsored
2student organization affiliated with an elementary or
3secondary school located in Illinois.
4    (10) A motor vehicle that is used for automobile renting,
5as defined in the Automobile Renting Occupation and Use Tax
6Act.
7    (11) Farm machinery and equipment, both new and used,
8including that manufactured on special order, certified by the
9purchaser to be used primarily for production agriculture or
10State or federal agricultural programs, including individual
11replacement parts for the machinery and equipment, including
12machinery and equipment purchased for lease, and including
13implements of husbandry defined in Section 1-130 of the
14Illinois Vehicle Code, farm machinery and agricultural
15chemical and fertilizer spreaders, and nurse wagons required
16to be registered under Section 3-809 of the Illinois Vehicle
17Code, but excluding other motor vehicles required to be
18registered under the Illinois Vehicle Code. Horticultural
19polyhouses or hoop houses used for propagating, growing, or
20overwintering plants shall be considered farm machinery and
21equipment under this item (11). Agricultural chemical tender
22tanks and dry boxes shall include units sold separately from a
23motor vehicle required to be licensed and units sold mounted
24on a motor vehicle required to be licensed if the selling price
25of the tender is separately stated.
26    Farm machinery and equipment shall include precision

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (11) is exempt from the
15provisions of Section 3-90.
16    (12) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the
19conduct of its business as an air common carrier, for a flight
20destined for or returning from a location or locations outside
21the United States without regard to previous or subsequent
22domestic stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold
24to or used by an air carrier, certified by the carrier to be
25used for consumption, shipment, or storage in the conduct of
26its business as an air common carrier, for a flight that (i) is

 

 

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1engaged in foreign trade or is engaged in trade between the
2United States and any of its possessions and (ii) transports
3at least one individual or package for hire from the city of
4origination to the city of final destination on the same
5aircraft, without regard to a change in the flight number of
6that aircraft.
7    (13) Proceeds of mandatory service charges separately
8stated on customers' bills for the purchase and consumption of
9food and beverages purchased at retail from a retailer, to the
10extent that the proceeds of the service charge are in fact
11turned over as tips or as a substitute for tips to the
12employees who participate directly in preparing, serving,
13hosting or cleaning up the food or beverage function with
14respect to which the service charge is imposed.
15    (14) Until July 1, 2003, oil field exploration, drilling,
16and production equipment, including (i) rigs and parts of
17rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
18pipe and tubular goods, including casing and drill strings,
19(iii) pumps and pump-jack units, (iv) storage tanks and flow
20lines, (v) any individual replacement part for oil field
21exploration, drilling, and production equipment, and (vi)
22machinery and equipment purchased for lease; but excluding
23motor vehicles required to be registered under the Illinois
24Vehicle Code.
25    (15) Photoprocessing machinery and equipment, including
26repair and replacement parts, both new and used, including

 

 

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1that manufactured on special order, certified by the purchaser
2to be used primarily for photoprocessing, and including
3photoprocessing machinery and equipment purchased for lease.
4    (16) Until July 1, 2028, coal and aggregate exploration,
5mining, off-highway hauling, processing, maintenance, and
6reclamation equipment, including replacement parts and
7equipment, and including equipment purchased for lease, but
8excluding motor vehicles required to be registered under the
9Illinois Vehicle Code. The changes made to this Section by
10Public Act 97-767 apply on and after July 1, 2003, but no claim
11for credit or refund is allowed on or after August 16, 2013
12(the effective date of Public Act 98-456) for such taxes paid
13during the period beginning July 1, 2003 and ending on August
1416, 2013 (the effective date of Public Act 98-456).
15    (17) Until July 1, 2003, distillation machinery and
16equipment, sold as a unit or kit, assembled or installed by the
17retailer, certified by the user to be used only for the
18production of ethyl alcohol that will be used for consumption
19as motor fuel or as a component of motor fuel for the personal
20use of the user, and not subject to sale or resale.
21    (18) Manufacturing and assembling machinery and equipment
22used primarily in the process of manufacturing or assembling
23tangible personal property for wholesale or retail sale or
24lease, whether that sale or lease is made directly by the
25manufacturer or by some other person, whether the materials
26used in the process are owned by the manufacturer or some other

 

 

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1person, or whether that sale or lease is made apart from or as
2an incident to the seller's engaging in the service occupation
3of producing machines, tools, dies, jigs, patterns, gauges, or
4other similar items of no commercial value on special order
5for a particular purchaser. The exemption provided by this
6paragraph (18) includes production related tangible personal
7property, as defined in Section 3-50, purchased on or after
8July 1, 2019. The exemption provided by this paragraph (18)
9does not include machinery and equipment used in (i) the
10generation of electricity for wholesale or retail sale; (ii)
11the generation or treatment of natural or artificial gas for
12wholesale or retail sale that is delivered to customers
13through pipes, pipelines, or mains; or (iii) the treatment of
14water for wholesale or retail sale that is delivered to
15customers through pipes, pipelines, or mains. The provisions
16of Public Act 98-583 are declaratory of existing law as to the
17meaning and scope of this exemption. Beginning on July 1,
182017, the exemption provided by this paragraph (18) includes,
19but is not limited to, graphic arts machinery and equipment,
20as defined in paragraph (6) of this Section.
21    (19) Personal property delivered to a purchaser or
22purchaser's donee inside Illinois when the purchase order for
23that personal property was received by a florist located
24outside Illinois who has a florist located inside Illinois
25deliver the personal property.
26    (20) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (21) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (21) is exempt from the
8provisions of Section 3-90, and the exemption provided for
9under this item (21) applies for all periods beginning May 30,
101995, but no claim for credit or refund is allowed on or after
11January 1, 2008 for such taxes paid during the period
12beginning May 30, 2000 and ending on January 1, 2008.
13    (22) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. If the equipment is leased
22in a manner that does not qualify for this exemption or is used
23in any other non-exempt manner, the lessor shall be liable for
24the tax imposed under this Act or the Service Use Tax Act, as
25the case may be, based on the fair market value of the property
26at the time the non-qualifying use occurs. No lessor shall

 

 

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1collect or attempt to collect an amount (however designated)
2that purports to reimburse that lessor for the tax imposed by
3this Act or the Service Use Tax Act, as the case may be, if the
4tax has not been paid by the lessor. If a lessor improperly
5collects any such amount from the lessee, the lessee shall
6have a legal right to claim a refund of that amount from the
7lessor. If, however, that amount is not refunded to the lessee
8for any reason, the lessor is liable to pay that amount to the
9Department.
10    (23) Personal property purchased by a lessor who leases
11the property, under a lease of one year or longer executed or
12in effect at the time the lessor would otherwise be subject to
13the tax imposed by this Act, to a governmental body that has
14been issued an active sales tax exemption identification
15number by the Department under Section 1g of the Retailers'
16Occupation Tax Act. If the property is leased in a manner that
17does not qualify for this exemption or used in any other
18non-exempt manner, the lessor shall be liable for the tax
19imposed under this Act or the Service Use Tax Act, as the case
20may be, based on the fair market value of the property at the
21time the non-qualifying use occurs. No lessor shall collect or
22attempt to collect an amount (however designated) that
23purports to reimburse that lessor for the tax imposed by this
24Act or the Service Use Tax Act, as the case may be, if the tax
25has not been paid by the lessor. If a lessor improperly
26collects any such amount from the lessee, the lessee shall

 

 

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1have a legal right to claim a refund of that amount from the
2lessor. If, however, that amount is not refunded to the lessee
3for any reason, the lessor is liable to pay that amount to the
4Department.
5    (24) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is donated
8for disaster relief to be used in a State or federally declared
9disaster area in Illinois or bordering Illinois by a
10manufacturer or retailer that is registered in this State to a
11corporation, society, association, foundation, or institution
12that has been issued a sales tax exemption identification
13number by the Department that assists victims of the disaster
14who reside within the declared disaster area.
15    (25) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is used in
18the performance of infrastructure repairs in this State,
19including but not limited to municipal roads and streets,
20access roads, bridges, sidewalks, waste disposal systems,
21water and sewer line extensions, water distribution and
22purification facilities, storm water drainage and retention
23facilities, and sewage treatment facilities, resulting from a
24State or federally declared disaster in Illinois or bordering
25Illinois when such repairs are initiated on facilities located
26in the declared disaster area within 6 months after the

 

 

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1disaster.
2    (26) Beginning July 1, 1999, game or game birds purchased
3at a "game breeding and hunting preserve area" as that term is
4used in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 3-90.
6    (27) 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
10Department to be organized and operated exclusively for
11educational purposes. For purposes of this exemption, "a
12corporation, limited liability company, society, association,
13foundation, or institution organized and operated exclusively
14for educational purposes" means all tax-supported public
15schools, private schools that offer systematic instruction in
16useful branches of learning by methods common to public
17schools and that compare favorably in their scope and
18intensity with the course of study presented in tax-supported
19schools, and vocational or technical schools or institutes
20organized and operated exclusively to provide a course of
21study of not less than 6 weeks duration and designed to prepare
22individuals to follow a trade or to pursue a manual,
23technical, mechanical, industrial, business, or commercial
24occupation.
25    (28) Beginning January 1, 2000, personal property,
26including food, purchased through fundraising events for the

 

 

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1benefit of a public or private elementary or secondary school,
2a group of those schools, or one or more school districts if
3the events are sponsored by an entity recognized by the school
4district that consists primarily of volunteers and includes
5parents and teachers of the school children. This paragraph
6does not apply to fundraising events (i) for the benefit of
7private home instruction or (ii) for which the fundraising
8entity purchases the personal property sold at the events from
9another individual or entity that sold the property for the
10purpose of resale by the fundraising entity and that profits
11from the sale to the fundraising entity. This paragraph is
12exempt from the provisions of Section 3-90.
13    (29) Beginning January 1, 2000 and through December 31,
142001, new or used automatic vending machines that prepare and
15serve hot food and beverages, including coffee, soup, and
16other items, and replacement parts for these machines.
17Beginning January 1, 2002 and through June 30, 2003, machines
18and parts for machines used in commercial, coin-operated
19amusement and vending business if a use or occupation tax is
20paid on the gross receipts derived from the use of the
21commercial, coin-operated amusement and vending machines. This
22paragraph is exempt from the provisions of Section 3-90.
23    (30) Beginning January 1, 2001 and through June 30, 2016,
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages,
26soft drinks, and food that has been prepared for immediate

 

 

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1consumption) and prescription and nonprescription medicines,
2drugs, medical appliances, and insulin, urine testing
3materials, syringes, and needles used by diabetics, for human
4use, when purchased for use by a person receiving medical
5assistance under Article V of the Illinois Public Aid Code who
6resides in a licensed long-term care facility, as defined in
7the Nursing Home Care Act, or in a licensed facility as defined
8in the ID/DD Community Care Act, the MC/DD Act, or the
9Specialized Mental Health Rehabilitation Act of 2013.
10    (31) Beginning on August 2, 2001 (the effective date of
11Public Act 92-227), computers and communications equipment
12utilized for any hospital purpose and equipment used in the
13diagnosis, analysis, or treatment of hospital patients
14purchased by a lessor who leases the equipment, under a lease
15of one year or longer executed or in effect at the time the
16lessor would otherwise be subject to the tax imposed by this
17Act, to a hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. If the equipment is leased
20in a manner that does not qualify for this exemption or is used
21in any other nonexempt manner, the lessor shall be liable for
22the tax imposed under this Act or the Service Use Tax Act, as
23the case may be, based on the fair market value of the property
24at the time the nonqualifying use occurs. No lessor shall
25collect or attempt to collect an amount (however designated)
26that purports to reimburse that lessor for the tax imposed by

 

 

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1this Act or the Service Use Tax Act, as the case may be, if the
2tax has not been paid by the lessor. If a lessor improperly
3collects any such amount from the lessee, the lessee shall
4have a legal right to claim a refund of that amount from the
5lessor. If, however, that amount is not refunded to the lessee
6for any reason, the lessor is liable to pay that amount to the
7Department. This paragraph is exempt from the provisions of
8Section 3-90.
9    (32) Beginning on August 2, 2001 (the effective date of
10Public Act 92-227), personal property purchased by a lessor
11who leases the property, under a lease of one year or longer
12executed or in effect at the time the lessor would otherwise be
13subject to the tax imposed by this Act, to a governmental body
14that has been issued an active sales tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act. If the property is leased
17in a manner that does not qualify for this exemption or used in
18any other nonexempt manner, the lessor shall be liable for the
19tax imposed under this Act or the Service Use Tax Act, as the
20case may be, based on the fair market value of the property at
21the time the nonqualifying use occurs. No lessor shall collect
22or attempt to collect an amount (however designated) that
23purports to reimburse that lessor for the tax imposed by this
24Act or the Service Use Tax Act, as the case may be, if the tax
25has not been paid by the lessor. If a lessor improperly
26collects any such amount from the lessee, the lessee shall

 

 

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1have a legal right to claim a refund of that amount from the
2lessor. If, however, that amount is not refunded to the lessee
3for any reason, the lessor is liable to pay that amount to the
4Department. This paragraph is exempt from the provisions of
5Section 3-90.
6    (33) On and after July 1, 2003 and through June 30, 2004,
7the use in this State of motor vehicles of the second division
8with a gross vehicle weight in excess of 8,000 pounds and that
9are subject to the commercial distribution fee imposed under
10Section 3-815.1 of the Illinois Vehicle Code. Beginning on
11July 1, 2004 and through June 30, 2005, the use in this State
12of motor vehicles of the second division: (i) with a gross
13vehicle weight rating in excess of 8,000 pounds; (ii) that are
14subject to the commercial distribution fee imposed under
15Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
16are primarily used for commercial purposes. Through June 30,
172005, this exemption applies to repair and replacement parts
18added after the initial purchase of such a motor vehicle if
19that motor vehicle is used in a manner that would qualify for
20the rolling stock exemption otherwise provided for in this
21Act. For purposes of this paragraph, the term "used for
22commercial purposes" means the transportation of persons or
23property in furtherance of any commercial or industrial
24enterprise, whether for-hire or not.
25    (34) Beginning January 1, 2008, tangible personal property
26used in the construction or maintenance of a community water

 

 

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1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued
4under Title IV of the Environmental Protection Act. This
5paragraph is exempt from the provisions of Section 3-90.
6    (35) Beginning January 1, 2010 and continuing through
7December 31, 2024, materials, parts, equipment, components,
8and furnishings incorporated into or upon an aircraft as part
9of the modification, refurbishment, completion, replacement,
10repair, or maintenance of the aircraft. This exemption
11includes consumable supplies used in the modification,
12refurbishment, completion, replacement, repair, and
13maintenance of aircraft. However, until January 1, 2024, this
14exemption , but excludes any materials, parts, equipment,
15components, and consumable supplies used in the modification,
16replacement, repair, and maintenance of aircraft engines or
17power plants, whether such engines or power plants are
18installed or uninstalled upon any such aircraft. "Consumable
19supplies" include, but are not limited to, adhesive, tape,
20sandpaper, general purpose lubricants, cleaning solution,
21latex gloves, and protective films.
22    Beginning January 1, 2010 and continuing through December
2331, 2023, this This exemption applies only to the use of
24qualifying tangible personal property by persons who modify,
25refurbish, complete, repair, replace, or maintain aircraft and
26who (i) hold an Air Agency Certificate and are empowered to

 

 

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1operate an approved repair station by the Federal Aviation
2Administration, (ii) have a Class IV Rating, and (iii) conduct
3operations in accordance with Part 145 of the Federal Aviation
4Regulations. From January 1, 2024 through December 31, 2024,
5this exemption applies only to the use of qualifying tangible
6personal property by: (A) persons who modify, refurbish,
7complete, repair, replace, or maintain aircraft and who (i)
8hold an Air Agency Certificate and are empowered to operate an
9approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations; and (B) persons who engage in the modification,
13replacement, repair, and maintenance of aircraft engines or
14power plants without regard to whether or not those persons
15meet the qualifications of item (A).
16    The exemption does not include aircraft operated by a
17commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part
19129 of the Federal Aviation Regulations. The changes made to
20this paragraph (35) by Public Act 98-534 are declarative of
21existing law. It is the intent of the General Assembly that the
22exemption under this paragraph (35) applies continuously from
23January 1, 2010 through December 31, 2024; however, no claim
24for credit or refund is allowed for taxes paid as a result of
25the disallowance of this exemption on or after January 1, 2015
26and prior to February 5, 2020 (the effective date of Public Act

 

 

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1101-629) this amendatory Act of the 101st General Assembly.
2    (36) Tangible personal property purchased by a
3public-facilities corporation, as described in Section
411-65-10 of the Illinois Municipal Code, for purposes of
5constructing or furnishing a municipal convention hall, but
6only if the legal title to the municipal convention hall is
7transferred to the municipality without any further
8consideration by or on behalf of the municipality at the time
9of the completion of the municipal convention hall or upon the
10retirement or redemption of any bonds or other debt
11instruments issued by the public-facilities corporation in
12connection with the development of the municipal convention
13hall. This exemption includes existing public-facilities
14corporations as provided in Section 11-65-25 of the Illinois
15Municipal Code. This paragraph is exempt from the provisions
16of Section 3-90.
17    (37) Beginning January 1, 2017 and through December 31,
182026, menstrual pads, tampons, and menstrual cups.
19    (38) Merchandise that is subject to the Rental Purchase
20Agreement Occupation and Use Tax. The purchaser must certify
21that the item is purchased to be rented subject to a rental
22purchase agreement, as defined in the Rental Purchase
23Agreement Act, and provide proof of registration under the
24Rental Purchase Agreement Occupation and Use Tax Act. This
25paragraph is exempt from the provisions of Section 3-90.
26    (39) Tangible personal property purchased by a purchaser

 

 

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1who is exempt from the tax imposed by this Act by operation of
2federal law. This paragraph is exempt from the provisions of
3Section 3-90.
4    (40) Qualified tangible personal property used in the
5construction or operation of a data center that has been
6granted a certificate of exemption by the Department of
7Commerce and Economic Opportunity, whether that tangible
8personal property is purchased by the owner, operator, or
9tenant of the data center or by a contractor or subcontractor
10of the owner, operator, or tenant. Data centers that would
11have qualified for a certificate of exemption prior to January
121, 2020 had Public Act 101-31 been in effect may apply for and
13obtain an exemption for subsequent purchases of computer
14equipment or enabling software purchased or leased to upgrade,
15supplement, or replace computer equipment or enabling software
16purchased or leased in the original investment that would have
17qualified.
18    The Department of Commerce and Economic Opportunity shall
19grant a certificate of exemption under this item (40) to
20qualified data centers as defined by Section 605-1025 of the
21Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23    For the purposes of this item (40):
24        "Data center" means a building or a series of
25    buildings rehabilitated or constructed to house working
26    servers in one physical location or multiple sites within

 

 

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1    the State of Illinois.
2        "Qualified tangible personal property" means:
3    electrical systems and equipment; climate control and
4    chilling equipment and systems; mechanical systems and
5    equipment; monitoring and secure systems; emergency
6    generators; hardware; computers; servers; data storage
7    devices; network connectivity equipment; racks; cabinets;
8    telecommunications cabling infrastructure; raised floor
9    systems; peripheral components or systems; software;
10    mechanical, electrical, or plumbing systems; battery
11    systems; cooling systems and towers; temperature control
12    systems; other cabling; and other data center
13    infrastructure equipment and systems necessary to operate
14    qualified tangible personal property, including fixtures;
15    and component parts of any of the foregoing, including
16    installation, maintenance, repair, refurbishment, and
17    replacement of qualified tangible personal property to
18    generate, transform, transmit, distribute, or manage
19    electricity necessary to operate qualified tangible
20    personal property; and all other tangible personal
21    property that is essential to the operations of a computer
22    data center. The term "qualified tangible personal
23    property" also includes building materials physically
24    incorporated in to the qualifying data center. To document
25    the exemption allowed under this Section, the retailer
26    must obtain from the purchaser a copy of the certificate

 

 

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1    of eligibility issued by the Department of Commerce and
2    Economic Opportunity.
3    This item (40) is exempt from the provisions of Section
43-90.
5    (41) Beginning July 1, 2022, breast pumps, breast pump
6collection and storage supplies, and breast pump kits. This
7item (41) is exempt from the provisions of Section 3-90. As
8used in this item (41):
9        "Breast pump" means an electrically controlled or
10    manually controlled pump device designed or marketed to be
11    used to express milk from a human breast during lactation,
12    including the pump device and any battery, AC adapter, or
13    other power supply unit that is used to power the pump
14    device and is packaged and sold with the pump device at the
15    time of sale.
16        "Breast pump collection and storage supplies" means
17    items of tangible personal property designed or marketed
18    to be used in conjunction with a breast pump to collect
19    milk expressed from a human breast and to store collected
20    milk until it is ready for consumption.
21        "Breast pump collection and storage supplies"
22    includes, but is not limited to: breast shields and breast
23    shield connectors; breast pump tubes and tubing adapters;
24    breast pump valves and membranes; backflow protectors and
25    backflow protector adaptors; bottles and bottle caps
26    specific to the operation of the breast pump; and breast

 

 

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1    milk storage bags.
2        "Breast pump collection and storage supplies" does not
3    include: (1) bottles and bottle caps not specific to the
4    operation of the breast pump; (2) breast pump travel bags
5    and other similar carrying accessories, including ice
6    packs, labels, and other similar products; (3) breast pump
7    cleaning supplies; (4) nursing bras, bra pads, breast
8    shells, and other similar products; and (5) creams,
9    ointments, and other similar products that relieve
10    breastfeeding-related symptoms or conditions of the
11    breasts or nipples, unless sold as part of a breast pump
12    kit that is pre-packaged by the breast pump manufacturer
13    or distributor.
14        "Breast pump kit" means a kit that: (1) contains no
15    more than a breast pump, breast pump collection and
16    storage supplies, a rechargeable battery for operating the
17    breast pump, a breastmilk cooler, bottle stands, ice
18    packs, and a breast pump carrying case; and (2) is
19    pre-packaged as a breast pump kit by the breast pump
20    manufacturer or distributor.
21    (42) (41) Tangible personal property sold by or on behalf
22of the State Treasurer pursuant to the Revised Uniform
23Unclaimed Property Act. This item (42) (41) is exempt from the
24provisions of Section 3-90.
25(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
26101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.

 

 

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16-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
2102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
3eff. 5-27-22; revised 8-1-22.)
 
4    Section 10. The Service Use Tax Act is amended by changing
5Section 3-5 as follows:
 
6    (35 ILCS 110/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a non-profit Illinois
17county fair association for use in conducting, operating, or
18promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or
24support of arts or cultural programming, activities, or

 

 

10300HB2518ham002- 25 -LRB103 28353 HLH 59175 a

1services. These organizations include, but are not limited to,
2music and dramatic arts organizations such as symphony
3orchestras and theatrical groups, arts and cultural service
4organizations, local arts councils, visual arts organizations,
5and media arts organizations. On and after July 1, 2001 (the
6effective date of Public Act 92-35), however, an entity
7otherwise eligible for this exemption shall not make tax-free
8purchases unless it has an active identification number issued
9by the Department.
10    (4) Legal tender, currency, medallions, or gold or silver
11coinage issued by the State of Illinois, the government of the
12United States of America, or the government of any foreign
13country, and bullion.
14    (5) Until July 1, 2003 and beginning again on September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new
17and used, and including that manufactured on special order or
18purchased for lease, certified by the purchaser to be used
19primarily for graphic arts production. Equipment includes
20chemicals or chemicals acting as catalysts but only if the
21chemicals or chemicals acting as catalysts effect a direct and
22immediate change upon a graphic arts product. Beginning on
23July 1, 2017, graphic arts machinery and equipment is included
24in the manufacturing and assembling machinery and equipment
25exemption under Section 2 of this Act.
26    (6) Personal property purchased from a teacher-sponsored

 

 

10300HB2518ham002- 26 -LRB103 28353 HLH 59175 a

1student organization affiliated with an elementary or
2secondary school located 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
12to be registered under Section 3-809 of the Illinois Vehicle
13Code, but excluding other motor vehicles required to be
14registered under the Illinois Vehicle Code. Horticultural
15polyhouses or hoop houses used for propagating, growing, or
16overwintering plants shall be considered farm machinery and
17equipment under this item (7). Agricultural chemical tender
18tanks and dry boxes shall include units sold separately from a
19motor vehicle required to be licensed and units sold mounted
20on a motor vehicle required to be licensed if the selling price
21of the tender 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

 

 

10300HB2518ham002- 27 -LRB103 28353 HLH 59175 a

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 3-75.
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
15conduct of its business as an air common carrier, for a flight
16destined for or returning from a location or locations outside
17the United States without regard to previous or subsequent
18domestic stopovers.
19    Beginning July 1, 2013, fuel and petroleum products sold
20to or used by an air carrier, certified by the carrier to be
21used for consumption, shipment, or storage in the conduct of
22its business 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
25at least 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 acquired as an incident to the purchase of a
6service from a serviceman, to the extent that the proceeds of
7the service charge are in fact turned over as tips or as a
8substitute for tips to the employees who participate directly
9in preparing, serving, hosting or cleaning up the food or
10beverage function with respect to which the service charge is
11imposed.
12    (10) Until July 1, 2003, oil field exploration, drilling,
13and production equipment, including (i) rigs and parts of
14rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
15pipe and tubular goods, including casing and drill strings,
16(iii) pumps and pump-jack units, (iv) storage tanks and flow
17lines, (v) any individual replacement part for oil field
18exploration, drilling, and production equipment, and (vi)
19machinery and equipment purchased for lease; but excluding
20motor vehicles required to be registered under the Illinois
21Vehicle Code.
22    (11) Proceeds from the sale of photoprocessing machinery
23and equipment, including repair and replacement parts, both
24new and used, including that manufactured on special order,
25certified by the purchaser to be used primarily for
26photoprocessing, and including photoprocessing machinery and

 

 

10300HB2518ham002- 29 -LRB103 28353 HLH 59175 a

1equipment purchased for lease.
2    (12) Until July 1, 2028, coal and aggregate exploration,
3mining, off-highway hauling, processing, maintenance, and
4reclamation equipment, including replacement parts and
5equipment, and including equipment purchased for lease, but
6excluding motor vehicles required to be registered under the
7Illinois Vehicle Code. The changes made to this Section by
8Public Act 97-767 apply on and after July 1, 2003, but no claim
9for credit or refund is allowed on or after August 16, 2013
10(the effective date of Public Act 98-456) for such taxes paid
11during the period beginning July 1, 2003 and ending on August
1216, 2013 (the effective date of Public Act 98-456).
13    (13) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (14) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (14) is exempt from the
21provisions of Section 3-75, and the exemption provided for
22under this item (14) applies for all periods beginning May 30,
231995, but no claim for credit or refund is allowed on or after
24January 1, 2008 (the effective date of Public Act 95-88) for
25such taxes paid during the period beginning May 30, 2000 and
26ending on January 1, 2008 (the effective date of Public Act

 

 

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195-88).
2    (15) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients purchased by a
5lessor who leases the equipment, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. If the equipment is leased
11in a manner that does not qualify for this exemption or is used
12in any other non-exempt manner, the lessor shall be liable for
13the tax imposed under this Act or the Use Tax Act, as the case
14may be, based on the fair market value of the property at the
15time the non-qualifying use occurs. No lessor shall collect or
16attempt to collect an amount (however designated) that
17purports to reimburse that lessor for the tax imposed by this
18Act or the Use Tax Act, as the case may be, if the tax has not
19been paid by the lessor. If a lessor improperly collects any
20such amount from the lessee, the lessee shall have a legal
21right to claim a refund of that amount from the lessor. If,
22however, that amount is not refunded to the lessee for any
23reason, the lessor is liable to pay that amount to the
24Department.
25    (16) Personal property purchased by a lessor who leases
26the property, under a lease of one year or longer executed or

 

 

10300HB2518ham002- 31 -LRB103 28353 HLH 59175 a

1in effect at the time the lessor would otherwise be subject to
2the tax imposed by this Act, to a governmental body that has
3been issued an active tax exemption identification number by
4the Department under Section 1g of the Retailers' Occupation
5Tax Act. If the property is leased in a manner that does not
6qualify for this exemption or is used in any other non-exempt
7manner, the lessor shall be liable for the tax imposed under
8this Act or the Use Tax Act, as the case may be, based on the
9fair market value of the property at the time the
10non-qualifying use occurs. No lessor shall collect or attempt
11to collect an amount (however designated) that purports to
12reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid
14by the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that
17amount is not refunded to the lessee for any reason, the lessor
18is liable to pay that amount to the Department.
19    (17) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated
22for disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (18) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in
6the performance of infrastructure repairs in this State,
7including but not limited to municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (19) Beginning July 1, 1999, game or game birds purchased
17at a "game breeding and hunting preserve area" as that term is
18used in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-75.
20    (20) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

10300HB2518ham002- 33 -LRB103 28353 HLH 59175 a

1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (21) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-75.

 

 

10300HB2518ham002- 34 -LRB103 28353 HLH 59175 a

1    (22) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-75.
11    (23) Beginning August 23, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14soft drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or in a licensed facility as defined
22in the ID/DD Community Care Act, the MC/DD Act, or the
23Specialized Mental Health Rehabilitation Act of 2013.
24    (24) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), computers and communications equipment
26utilized for any hospital purpose and equipment used in the

 

 

10300HB2518ham002- 35 -LRB103 28353 HLH 59175 a

1diagnosis, analysis, or treatment of hospital patients
2purchased by a lessor who leases the equipment, under a lease
3of one year or longer executed or in effect at the time the
4lessor would otherwise be subject to the tax imposed by this
5Act, to a hospital that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the equipment is leased
8in a manner that does not qualify for this exemption or is used
9in any other nonexempt manner, the lessor shall be liable for
10the tax imposed under this Act or the Use Tax Act, as the case
11may be, based on the fair market value of the property at the
12time the nonqualifying use occurs. No lessor shall collect or
13attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Use Tax Act, as the case may be, if the tax has not
16been paid by the lessor. If a lessor improperly collects any
17such amount from the lessee, the lessee shall have a legal
18right to claim a refund of that amount from the lessor. If,
19however, that amount is not refunded to the lessee for any
20reason, the lessor is liable to pay that amount to the
21Department. This paragraph is exempt from the provisions of
22Section 3-75.
23    (25) Beginning on August 2, 2001 (the effective date of
24Public Act 92-227), personal property purchased by a lessor
25who leases the property, under a lease of one year or longer
26executed or in effect at the time the lessor would otherwise be

 

 

10300HB2518ham002- 36 -LRB103 28353 HLH 59175 a

1subject to the tax imposed by this Act, to a governmental body
2that has been issued an active tax exemption identification
3number by the Department under Section 1g of the Retailers'
4Occupation Tax Act. If the property is leased in a manner that
5does not qualify for this exemption or is used in any other
6nonexempt manner, the lessor shall be liable for the tax
7imposed under this Act or the Use Tax Act, as the case may be,
8based on the fair market value of the property at the time the
9nonqualifying use occurs. No lessor shall collect or attempt
10to collect an amount (however designated) that purports to
11reimburse that lessor for the tax imposed by this Act or the
12Use Tax Act, as the case may be, if the tax has not been paid
13by the lessor. If a lessor improperly collects any such amount
14from the lessee, the lessee shall have a legal right to claim a
15refund of that amount from the lessor. If, however, that
16amount is not refunded to the lessee for any reason, the lessor
17is liable to pay that amount to the Department. This paragraph
18is exempt from the provisions of Section 3-75.
19    (26) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued
24under Title IV of the Environmental Protection Act. This
25paragraph is exempt from the provisions of Section 3-75.
26    (27) Beginning January 1, 2010 and continuing through

 

 

10300HB2518ham002- 37 -LRB103 28353 HLH 59175 a

1December 31, 2024, materials, parts, equipment, components,
2and furnishings incorporated into or upon an aircraft as part
3of the modification, refurbishment, completion, replacement,
4repair, or maintenance of the aircraft. This exemption
5includes consumable supplies used in the modification,
6refurbishment, completion, replacement, repair, and
7maintenance of aircraft. However, until January 1, 2024, this
8exemption , but excludes any materials, parts, equipment,
9components, and consumable supplies used in the modification,
10replacement, repair, and maintenance of aircraft engines or
11power plants, whether such engines or power plants are
12installed or uninstalled upon any such aircraft. "Consumable
13supplies" include, but are not limited to, adhesive, tape,
14sandpaper, general purpose lubricants, cleaning solution,
15latex gloves, and protective films.
16    Beginning January 1, 2010 and continuing through December
1731, 2023, this This exemption applies only to the use of
18qualifying tangible personal property transferred incident to
19the modification, refurbishment, completion, replacement,
20repair, or maintenance of aircraft by persons who (i) hold an
21Air Agency Certificate and are empowered to operate an
22approved repair station by the Federal Aviation
23Administration, (ii) have a Class IV Rating, and (iii) conduct
24operations in accordance with Part 145 of the Federal Aviation
25Regulations. From January 1, 2024 through December 31, 2024,
26this exemption applies only to the use of qualifying tangible

 

 

10300HB2518ham002- 38 -LRB103 28353 HLH 59175 a

1personal property by: (A) persons who modify, refurbish,
2complete, repair, replace, or maintain aircraft and who (i)
3hold an Air Agency Certificate and are empowered to operate an
4approved repair station by the Federal Aviation
5Administration, (ii) have a Class IV Rating, and (iii) conduct
6operations in accordance with Part 145 of the Federal Aviation
7Regulations; and (B) persons who engage in the modification,
8replacement, repair, and maintenance of aircraft engines or
9power plants without regard to whether or not those persons
10meet the qualifications of item (A).
11    The exemption does not include aircraft operated by a
12commercial air carrier providing scheduled passenger air
13service pursuant to authority issued under Part 121 or Part
14129 of the Federal Aviation Regulations. The changes made to
15this paragraph (27) by Public Act 98-534 are declarative of
16existing law. It is the intent of the General Assembly that the
17exemption under this paragraph (27) applies continuously from
18January 1, 2010 through December 31, 2024; however, no claim
19for credit or refund is allowed for taxes paid as a result of
20the disallowance of this exemption on or after January 1, 2015
21and prior to February 5, 2020 (the effective date of Public Act
22101-629) this amendatory Act of the 101st General Assembly.
23    (28) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt
6instruments issued by the public-facilities corporation in
7connection with the development of the municipal convention
8hall. This exemption includes existing public-facilities
9corporations as provided in Section 11-65-25 of the Illinois
10Municipal Code. This paragraph is exempt from the provisions
11of Section 3-75.
12    (29) Beginning January 1, 2017 and through December 31,
132026, menstrual pads, tampons, and menstrual cups.
14    (30) Tangible personal property transferred to a purchaser
15who is exempt from the tax imposed by this Act by operation of
16federal law. This paragraph is exempt from the provisions of
17Section 3-75.
18    (31) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would
25have qualified for a certificate of exemption prior to January
261, 2020 had Public Act 101-31 this amendatory Act of the 101st

 

 

10300HB2518ham002- 40 -LRB103 28353 HLH 59175 a

1General Assembly been in effect, may apply for and obtain an
2exemption for subsequent purchases of computer equipment or
3enabling software purchased or leased to upgrade, supplement,
4or replace computer equipment or enabling software purchased
5or leased in the original investment that would have
6qualified.
7    The Department of Commerce and Economic Opportunity shall
8grant a certificate of exemption under this item (31) to
9qualified data centers as defined by Section 605-1025 of the
10Department of Commerce and Economic Opportunity Law of the
11Civil Administrative Code of Illinois.
12    For the purposes of this item (31):
13        "Data center" means a building or a series of
14    buildings rehabilitated or constructed to house working
15    servers in one physical location or multiple sites within
16    the State of Illinois.
17        "Qualified tangible personal property" means:
18    electrical systems and equipment; climate control and
19    chilling equipment and systems; mechanical systems and
20    equipment; monitoring and secure systems; emergency
21    generators; hardware; computers; servers; data storage
22    devices; network connectivity equipment; racks; cabinets;
23    telecommunications cabling infrastructure; raised floor
24    systems; peripheral components or systems; software;
25    mechanical, electrical, or plumbing systems; battery
26    systems; cooling systems and towers; temperature control

 

 

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1    systems; other cabling; and other data center
2    infrastructure equipment and systems necessary to operate
3    qualified tangible personal property, including fixtures;
4    and component parts of any of the foregoing, including
5    installation, maintenance, repair, refurbishment, and
6    replacement of qualified tangible personal property to
7    generate, transform, transmit, distribute, or manage
8    electricity necessary to operate qualified tangible
9    personal property; and all other tangible personal
10    property that is essential to the operations of a computer
11    data center. The term "qualified tangible personal
12    property" also includes building materials physically
13    incorporated in to the qualifying data center. To document
14    the exemption allowed under this Section, the retailer
15    must obtain from the purchaser a copy of the certificate
16    of eligibility issued by the Department of Commerce and
17    Economic Opportunity.
18    This item (31) is exempt from the provisions of Section
193-75.
20    (32) Beginning July 1, 2022, breast pumps, breast pump
21collection and storage supplies, and breast pump kits. This
22item (32) is exempt from the provisions of Section 3-75. As
23used in this item (32):
24        "Breast pump" means an electrically controlled or
25    manually controlled pump device designed or marketed to be
26    used to express milk from a human breast during lactation,

 

 

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1    including the pump device and any battery, AC adapter, or
2    other power supply unit that is used to power the pump
3    device and is packaged and sold with the pump device at the
4    time of sale.
5        "Breast pump collection and storage supplies" means
6    items of tangible personal property designed or marketed
7    to be used in conjunction with a breast pump to collect
8    milk expressed from a human breast and to store collected
9    milk until it is ready for consumption.
10        "Breast pump collection and storage supplies"
11    includes, but is not limited to: breast shields and breast
12    shield connectors; breast pump tubes and tubing adapters;
13    breast pump valves and membranes; backflow protectors and
14    backflow protector adaptors; bottles and bottle caps
15    specific to the operation of the breast pump; and breast
16    milk storage bags.
17        "Breast pump collection and storage supplies" does not
18    include: (1) bottles and bottle caps not specific to the
19    operation of the breast pump; (2) breast pump travel bags
20    and other similar carrying accessories, including ice
21    packs, labels, and other similar products; (3) breast pump
22    cleaning supplies; (4) nursing bras, bra pads, breast
23    shells, and other similar products; and (5) creams,
24    ointments, and other similar products that relieve
25    breastfeeding-related symptoms or conditions of the
26    breasts or nipples, unless sold as part of a breast pump

 

 

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1    kit that is pre-packaged by the breast pump manufacturer
2    or distributor.
3        "Breast pump kit" means a kit that: (1) contains no
4    more than a breast pump, breast pump collection and
5    storage supplies, a rechargeable battery for operating the
6    breast pump, a breastmilk cooler, bottle stands, ice
7    packs, and a breast pump carrying case; and (2) is
8    pre-packaged as a breast pump kit by the breast pump
9    manufacturer or distributor.
10    (33) (32) Tangible personal property sold by or on behalf
11of the State Treasurer pursuant to the Revised Uniform
12Unclaimed Property Act. This item (33) (32) is exempt from the
13provisions of Section 3-75.
14(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
15101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1670, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1775-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
18    Section 15. The Service Occupation Tax Act is amended by
19changing Section 3-5 as follows:
 
20    (35 ILCS 115/3-5)
21    Sec. 3-5. Exemptions. The following tangible personal
22property is exempt from the tax imposed by this Act:
23    (1) Personal property sold by a corporation, society,
24association, foundation, institution, or organization, other

 

 

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1than a limited liability company, that is organized and
2operated as a not-for-profit service enterprise for the
3benefit of persons 65 years of age or older if the personal
4property was not purchased by the enterprise for the purpose
5of resale by the enterprise.
6    (2) Personal property purchased by a not-for-profit
7Illinois county fair association for use in conducting,
8operating, or promoting the county fair.
9    (3) Personal property purchased by any not-for-profit arts
10or cultural organization that establishes, by proof required
11by the Department by rule, that it has received an exemption
12under Section 501(c)(3) of the Internal Revenue Code and that
13is organized and operated primarily for the presentation or
14support of arts or cultural programming, activities, or
15services. These organizations include, but are not limited to,
16music and dramatic arts organizations such as symphony
17orchestras and theatrical groups, arts and cultural service
18organizations, local arts councils, visual arts organizations,
19and media arts organizations. On and after July 1, 2001 (the
20effective date of Public Act 92-35), however, an entity
21otherwise eligible for this exemption shall not make tax-free
22purchases unless it has an active identification number issued
23by the Department.
24    (4) Legal tender, currency, medallions, or gold or silver
25coinage issued by the State of Illinois, the government of the
26United States of America, or the government of any foreign

 

 

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1country, and bullion.
2    (5) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order or
6purchased for lease, certified by the purchaser to be used
7primarily for graphic arts production. Equipment includes
8chemicals or chemicals acting as catalysts but only if the
9chemicals or chemicals acting as catalysts effect a direct and
10immediate change upon a graphic arts product. Beginning on
11July 1, 2017, graphic arts machinery and equipment is included
12in the manufacturing and assembling machinery and equipment
13exemption under Section 2 of this Act.
14    (6) Personal property sold by a teacher-sponsored student
15organization affiliated with an elementary or secondary school
16located in Illinois.
17    (7) Farm machinery and equipment, both new and used,
18including that manufactured on special order, certified by the
19purchaser to be used primarily for production agriculture or
20State or federal agricultural programs, including individual
21replacement parts for the machinery and equipment, including
22machinery and equipment purchased for lease, and including
23implements of husbandry defined in Section 1-130 of the
24Illinois Vehicle Code, farm machinery and agricultural
25chemical and fertilizer spreaders, and nurse wagons required
26to be registered under Section 3-809 of the Illinois Vehicle

 

 

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1Code, but excluding other motor vehicles required to be
2registered under the Illinois Vehicle Code. Horticultural
3polyhouses or hoop houses used for propagating, growing, or
4overwintering plants shall be considered farm machinery and
5equipment under this item (7). Agricultural chemical tender
6tanks and dry boxes shall include units sold separately from a
7motor vehicle required to be licensed and units sold mounted
8on a motor vehicle required to be licensed if the selling price
9of the tender 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 (7) is exempt from the
25provisions of Section 3-55.
26    (8) Until June 30, 2013, fuel and petroleum products sold

 

 

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1to or used by an air common carrier, certified by the carrier
2to be used for consumption, shipment, or storage in the
3conduct of its business as an air common carrier, for a flight
4destined for or returning from a location or locations outside
5the United States without regard to previous or subsequent
6domestic stopovers.
7    Beginning July 1, 2013, fuel and petroleum products sold
8to or used by an air carrier, certified by the carrier to be
9used for consumption, shipment, or storage in the conduct of
10its business as an air common carrier, for a flight that (i) is
11engaged in foreign trade or is engaged in trade between the
12United States and any of its possessions and (ii) transports
13at least one individual or package for hire from the city of
14origination to the city of final destination on the same
15aircraft, without regard to a change in the flight number of
16that aircraft.
17    (9) Proceeds of mandatory service charges separately
18stated on customers' bills for the purchase and consumption of
19food and beverages, to the extent that the proceeds of the
20service charge are in fact turned over as tips or as a
21substitute for tips to the employees who participate directly
22in preparing, serving, hosting or cleaning up the food or
23beverage function with respect to which the service charge is
24imposed.
25    (10) Until July 1, 2003, oil field exploration, drilling,
26and production equipment, including (i) rigs and parts of

 

 

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1rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2pipe and tubular goods, including casing and drill strings,
3(iii) pumps and pump-jack units, (iv) storage tanks and flow
4lines, (v) any individual replacement part for oil field
5exploration, drilling, and production equipment, and (vi)
6machinery and equipment purchased for lease; but excluding
7motor vehicles required to be registered under the Illinois
8Vehicle Code.
9    (11) Photoprocessing machinery and equipment, including
10repair and replacement parts, both new and used, including
11that manufactured on special order, certified by the purchaser
12to be used primarily for photoprocessing, and including
13photoprocessing machinery and equipment purchased for lease.
14    (12) Until July 1, 2028, coal and aggregate exploration,
15mining, off-highway hauling, processing, maintenance, and
16reclamation equipment, including replacement parts and
17equipment, and including equipment purchased for lease, but
18excluding motor vehicles required to be registered under the
19Illinois Vehicle Code. The changes made to this Section by
20Public Act 97-767 apply on and after July 1, 2003, but no claim
21for credit or refund is allowed on or after August 16, 2013
22(the effective date of Public Act 98-456) for such taxes paid
23during the period beginning July 1, 2003 and ending on August
2416, 2013 (the effective date of Public Act 98-456).
25    (13) Beginning January 1, 1992 and through June 30, 2016,
26food for human consumption that is to be consumed off the

 

 

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1premises where it is sold (other than alcoholic beverages,
2soft drinks and food that has been prepared for immediate
3consumption) and prescription and non-prescription medicines,
4drugs, medical appliances, and insulin, urine testing
5materials, syringes, and needles used by diabetics, for human
6use, when purchased for use by a person receiving medical
7assistance under Article V of the Illinois Public Aid Code who
8resides in a licensed long-term care facility, as defined in
9the Nursing Home Care Act, or in a licensed facility as defined
10in the ID/DD Community Care Act, the MC/DD Act, or the
11Specialized Mental Health Rehabilitation Act of 2013.
12    (14) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (15) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (15) is exempt from the
20provisions of Section 3-55, and the exemption provided for
21under this item (15) applies for all periods beginning May 30,
221995, but no claim for credit or refund is allowed on or after
23January 1, 2008 (the effective date of Public Act 95-88) for
24such taxes paid during the period beginning May 30, 2000 and
25ending on January 1, 2008 (the effective date of Public Act
2695-88).

 

 

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1    (16) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients sold to a lessor
4who leases the equipment, under a lease of one year or longer
5executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8the Retailers' Occupation Tax Act.
9    (17) Personal property sold to a lessor who leases the
10property, under a lease of one year or longer executed or in
11effect at the time of the purchase, to a governmental body that
12has been issued an active tax exemption identification number
13by the Department under Section 1g of the Retailers'
14Occupation Tax Act.
15    (18) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is donated
18for disaster relief to be used in a State or federally declared
19disaster area in Illinois or bordering Illinois by a
20manufacturer or retailer that is registered in this State to a
21corporation, society, association, foundation, or institution
22that has been issued a sales tax exemption identification
23number by the Department that assists victims of the disaster
24who reside within the declared disaster area.
25    (19) 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 used in
2the performance of infrastructure repairs in this State,
3including but not limited to municipal roads and streets,
4access roads, bridges, sidewalks, waste disposal systems,
5water and sewer line extensions, water distribution and
6purification facilities, storm water drainage and retention
7facilities, and sewage treatment facilities, resulting from a
8State or federally declared disaster in Illinois or bordering
9Illinois when such repairs are initiated on facilities located
10in the declared disaster area within 6 months after the
11disaster.
12    (20) Beginning July 1, 1999, game or game birds sold at a
13"game breeding and hunting preserve area" as that term is used
14in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 3-55.
16    (21) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the
20Department to be organized and operated exclusively for
21educational purposes. For purposes of this exemption, "a
22corporation, limited liability company, society, association,
23foundation, or institution organized and operated exclusively
24for educational purposes" means all tax-supported public
25schools, private schools that offer systematic instruction in
26useful branches of learning by methods common to public

 

 

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1schools and that compare favorably in their scope and
2intensity with the course of study presented in tax-supported
3schools, and vocational or technical schools or institutes
4organized and operated exclusively to provide a course of
5study of not less than 6 weeks duration and designed to prepare
6individuals to follow a trade or to pursue a manual,
7technical, mechanical, industrial, business, or commercial
8occupation.
9    (22) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-55.
23    (23) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and
26other items, and replacement parts for these machines.

 

 

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1Beginning January 1, 2002 and through June 30, 2003, machines
2and parts for machines used in commercial, coin-operated
3amusement and vending business if a use or occupation tax is
4paid on the gross receipts derived from the use of the
5commercial, coin-operated amusement and vending machines. This
6paragraph is exempt from the provisions of Section 3-55.
7    (24) Beginning on August 2, 2001 (the effective date of
8Public Act 92-227), computers and communications equipment
9utilized for any hospital purpose and equipment used in the
10diagnosis, analysis, or treatment of hospital patients sold to
11a lessor who leases the equipment, under a lease of one year or
12longer executed or in effect at the time of the purchase, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15the Retailers' Occupation Tax Act. This paragraph is exempt
16from the provisions of Section 3-55.
17    (25) Beginning on August 2, 2001 (the effective date of
18Public Act 92-227), personal property sold to a lessor who
19leases the property, under a lease of one year or longer
20executed 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
23the Retailers' Occupation Tax Act. This paragraph is exempt
24from the provisions of Section 3-55.
25    (26) Beginning on January 1, 2002 and through June 30,
262016, tangible personal property purchased from an Illinois

 

 

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1retailer by a taxpayer engaged in centralized purchasing
2activities in Illinois who will, upon receipt of the property
3in Illinois, temporarily store the property in Illinois (i)
4for the purpose of subsequently transporting it outside this
5State for use or consumption thereafter solely outside this
6State or (ii) for the purpose of being processed, fabricated,
7or manufactured into, attached to, or incorporated into other
8tangible personal property to be transported outside this
9State and thereafter used or consumed solely outside this
10State. The Director of Revenue shall, pursuant to rules
11adopted in accordance with the Illinois Administrative
12Procedure Act, issue a permit to any taxpayer in good standing
13with the Department who is eligible for the exemption under
14this paragraph (26). The permit issued under this paragraph
15(26) shall authorize the holder, to the extent and in the
16manner specified in the rules adopted under this Act, to
17purchase tangible personal property from a retailer exempt
18from the taxes imposed by this Act. Taxpayers shall maintain
19all necessary books and records to substantiate the use and
20consumption of all such tangible personal property outside of
21the State of Illinois.
22    (27) Beginning January 1, 2008, tangible personal property
23used in the construction or maintenance of a community water
24supply, as defined under Section 3.145 of the Environmental
25Protection Act, that is operated by a not-for-profit
26corporation that holds a valid water supply permit issued

 

 

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1under Title IV of the Environmental Protection Act. This
2paragraph is exempt from the provisions of Section 3-55.
3    (28) Tangible personal property sold to a
4public-facilities corporation, as described in Section
511-65-10 of the Illinois Municipal Code, for purposes of
6constructing or furnishing a municipal convention hall, but
7only if the legal title to the municipal convention hall is
8transferred to the municipality without any further
9consideration by or on behalf of the municipality at the time
10of the completion of the municipal convention hall or upon the
11retirement or redemption of any bonds or other debt
12instruments issued by the public-facilities corporation in
13connection with the development of the municipal convention
14hall. This exemption includes existing public-facilities
15corporations as provided in Section 11-65-25 of the Illinois
16Municipal Code. This paragraph is exempt from the provisions
17of Section 3-55.
18    (29) Beginning January 1, 2010 and continuing through
19December 31, 2024, materials, parts, equipment, components,
20and furnishings incorporated into or upon an aircraft as part
21of the modification, refurbishment, completion, replacement,
22repair, or maintenance of the aircraft. This exemption
23includes consumable supplies used in the modification,
24refurbishment, completion, replacement, repair, and
25maintenance of aircraft. However, until January 1, 2024, this
26exemption , but excludes any materials, parts, equipment,

 

 

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1components, and consumable supplies used in the modification,
2replacement, repair, and maintenance of aircraft engines or
3power plants, whether such engines or power plants are
4installed or uninstalled upon any such aircraft. "Consumable
5supplies" include, but are not limited to, adhesive, tape,
6sandpaper, general purpose lubricants, cleaning solution,
7latex gloves, and protective films.
8    Beginning January 1, 2010 and continuing through December
931, 2023, this This exemption applies only to the transfer of
10qualifying tangible personal property incident to the
11modification, refurbishment, completion, replacement, repair,
12or maintenance of an aircraft by persons who (i) hold an Air
13Agency Certificate and are empowered to operate an approved
14repair station by the Federal Aviation Administration, (ii)
15have a Class IV Rating, and (iii) conduct operations in
16accordance with Part 145 of the Federal Aviation Regulations.
17The exemption does not include aircraft operated by a
18commercial air carrier providing scheduled passenger air
19service pursuant to authority issued under Part 121 or Part
20129 of the Federal Aviation Regulations. From January 1, 2024
21through December 31, 2024, this exemption applies only to the
22use of qualifying tangible personal property by: (A) persons
23who modify, refurbish, complete, repair, replace, or maintain
24aircraft and who (i) hold an Air Agency Certificate and are
25empowered to operate an approved repair station by the Federal
26Aviation Administration, (ii) have a Class IV Rating, and

 

 

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1(iii) conduct operations in accordance with Part 145 of the
2Federal Aviation Regulations; and (B) persons who engage in
3the modification, replacement, repair, and maintenance of
4aircraft engines or power plants without regard to whether or
5not those persons meet the qualifications of item (A).
6    The changes made to this paragraph (29) by Public Act
798-534 are declarative of existing law. It is the intent of the
8General Assembly that the exemption under this paragraph (29)
9applies continuously from January 1, 2010 through December 31,
102024; however, no claim for credit or refund is allowed for
11taxes paid as a result of the disallowance of this exemption on
12or after January 1, 2015 and prior to February 5, 2020 (the
13effective date of Public Act 101-629) this amendatory Act of
14the 101st General Assembly.
15    (30) Beginning January 1, 2017 and through December 31,
162026, menstrual pads, tampons, and menstrual cups.
17    (31) Tangible personal property transferred to a purchaser
18who is exempt from tax by operation of federal law. This
19paragraph is exempt from the provisions of Section 3-55.
20    (32) Qualified tangible personal property used in the
21construction or operation of a data center that has been
22granted a certificate of exemption by the Department of
23Commerce and Economic Opportunity, whether that tangible
24personal property is purchased by the owner, operator, or
25tenant of the data center or by a contractor or subcontractor
26of the owner, operator, or tenant. Data centers that would

 

 

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1have qualified for a certificate of exemption prior to January
21, 2020 had Public Act 101-31 this amendatory Act of the 101st
3General Assembly been in effect, may apply for and obtain an
4exemption for subsequent purchases of computer equipment or
5enabling software purchased or leased to upgrade, supplement,
6or replace computer equipment or enabling software purchased
7or leased in the original investment that would have
8qualified.
9    The Department of Commerce and Economic Opportunity shall
10grant a certificate of exemption under this item (32) to
11qualified data centers as defined by Section 605-1025 of the
12Department of Commerce and Economic Opportunity Law of the
13Civil Administrative Code of Illinois.
14    For the purposes of this item (32):
15        "Data center" means a building or a series of
16    buildings rehabilitated or constructed to house working
17    servers in one physical location or multiple sites within
18    the State of Illinois.
19        "Qualified tangible personal property" means:
20    electrical systems and equipment; climate control and
21    chilling equipment and systems; mechanical systems and
22    equipment; monitoring and secure systems; emergency
23    generators; hardware; computers; servers; data storage
24    devices; network connectivity equipment; racks; cabinets;
25    telecommunications cabling infrastructure; raised floor
26    systems; peripheral components or systems; software;

 

 

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1    mechanical, electrical, or plumbing systems; battery
2    systems; cooling systems and towers; temperature control
3    systems; other cabling; and other data center
4    infrastructure equipment and systems necessary to operate
5    qualified tangible personal property, including fixtures;
6    and component parts of any of the foregoing, including
7    installation, maintenance, repair, refurbishment, and
8    replacement of qualified tangible personal property to
9    generate, transform, transmit, distribute, or manage
10    electricity necessary to operate qualified tangible
11    personal property; and all other tangible personal
12    property that is essential to the operations of a computer
13    data center. The term "qualified tangible personal
14    property" also includes building materials physically
15    incorporated in to the qualifying data center. To document
16    the exemption allowed under this Section, the retailer
17    must obtain from the purchaser a copy of the certificate
18    of eligibility issued by the Department of Commerce and
19    Economic Opportunity.
20    This item (32) is exempt from the provisions of Section
213-55.
22    (33) Beginning July 1, 2022, breast pumps, breast pump
23collection and storage supplies, and breast pump kits. This
24item (33) is exempt from the provisions of Section 3-55. As
25used in this item (33):
26        "Breast pump" means an electrically controlled or

 

 

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1    manually controlled pump device designed or marketed to be
2    used to express milk from a human breast during lactation,
3    including the pump device and any battery, AC adapter, or
4    other power supply unit that is used to power the pump
5    device and is packaged and sold with the pump device at the
6    time of sale.
7        "Breast pump collection and storage supplies" means
8    items of tangible personal property designed or marketed
9    to be used in conjunction with a breast pump to collect
10    milk expressed from a human breast and to store collected
11    milk until it is ready for consumption.
12        "Breast pump collection and storage supplies"
13    includes, but is not limited to: breast shields and breast
14    shield connectors; breast pump tubes and tubing adapters;
15    breast pump valves and membranes; backflow protectors and
16    backflow protector adaptors; bottles and bottle caps
17    specific to the operation of the breast pump; and breast
18    milk storage bags.
19        "Breast pump collection and storage supplies" does not
20    include: (1) bottles and bottle caps not specific to the
21    operation of the breast pump; (2) breast pump travel bags
22    and other similar carrying accessories, including ice
23    packs, labels, and other similar products; (3) breast pump
24    cleaning supplies; (4) nursing bras, bra pads, breast
25    shells, and other similar products; and (5) creams,
26    ointments, and other similar products that relieve

 

 

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1    breastfeeding-related symptoms or conditions of the
2    breasts or nipples, unless sold as part of a breast pump
3    kit that is pre-packaged by the breast pump manufacturer
4    or distributor.
5        "Breast pump kit" means a kit that: (1) contains no
6    more than a breast pump, breast pump collection and
7    storage supplies, a rechargeable battery for operating the
8    breast pump, a breastmilk cooler, bottle stands, ice
9    packs, and a breast pump carrying case; and (2) is
10    pre-packaged as a breast pump kit by the breast pump
11    manufacturer or distributor.
12    (34) (33) Tangible personal property sold by or on behalf
13of the State Treasurer pursuant to the Revised Uniform
14Unclaimed Property Act. This item (34) (33) is exempt from the
15provisions of Section 3-55.
16(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
17101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1870, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1975-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
20    Section 20. The Retailers' Occupation Tax Act is amended
21by changing Section 2-5 as follows:
 
22    (35 ILCS 120/2-5)
23    Sec. 2-5. Exemptions. Gross receipts from proceeds from
24the sale of the following tangible personal property are

 

 

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1exempt from the tax imposed by this Act:
2        (1) Farm chemicals.
3        (2) Farm machinery and equipment, both new and used,
4    including that manufactured on special order, certified by
5    the purchaser to be used primarily for production
6    agriculture or State or federal agricultural programs,
7    including individual replacement parts for the machinery
8    and equipment, including machinery and equipment purchased
9    for lease, and including implements of husbandry defined
10    in Section 1-130 of the Illinois Vehicle Code, farm
11    machinery and agricultural chemical and fertilizer
12    spreaders, and nurse wagons required to be registered
13    under Section 3-809 of the Illinois Vehicle Code, but
14    excluding other motor vehicles required to be registered
15    under the Illinois Vehicle Code. Horticultural polyhouses
16    or hoop houses used for propagating, growing, or
17    overwintering plants shall be considered farm machinery
18    and equipment under this item (2). Agricultural chemical
19    tender tanks and dry boxes shall include units sold
20    separately from a motor vehicle required to be licensed
21    and units sold mounted on a motor vehicle required to be
22    licensed, if the selling price of the tender is separately
23    stated.
24        Farm machinery and equipment shall include precision
25    farming equipment that is installed or purchased to be
26    installed on farm machinery and equipment including, but

 

 

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1    not limited to, tractors, harvesters, sprayers, planters,
2    seeders, or spreaders. Precision farming equipment
3    includes, but is not limited to, soil testing sensors,
4    computers, monitors, software, global positioning and
5    mapping systems, and other such equipment.
6        Farm machinery and equipment also includes computers,
7    sensors, software, and related equipment used primarily in
8    the computer-assisted operation of production agriculture
9    facilities, equipment, and activities such as, but not
10    limited to, the collection, monitoring, and correlation of
11    animal and crop data for the purpose of formulating animal
12    diets and agricultural chemicals. This item (2) is exempt
13    from the provisions of Section 2-70.
14        (3) Until July 1, 2003, distillation machinery and
15    equipment, sold as a unit or kit, assembled or installed
16    by the retailer, certified by the user to be used only for
17    the production of ethyl alcohol that will be used for
18    consumption as motor fuel or as a component of motor fuel
19    for the personal use of the user, and not subject to sale
20    or resale.
21        (4) Until July 1, 2003 and beginning again September
22    1, 2004 through August 30, 2014, graphic arts machinery
23    and equipment, including repair and replacement parts,
24    both new and used, and including that manufactured on
25    special order or purchased for lease, certified by the
26    purchaser to be used primarily for graphic arts

 

 

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1    production. 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
4    upon a graphic arts product. Beginning on July 1, 2017,
5    graphic arts machinery and equipment is included in the
6    manufacturing and assembling machinery and equipment
7    exemption under paragraph (14).
8        (5) A motor vehicle that is used for automobile
9    renting, as defined in the Automobile Renting Occupation
10    and Use Tax Act. This paragraph is exempt from the
11    provisions of Section 2-70.
12        (6) Personal property sold by a teacher-sponsored
13    student organization affiliated with an elementary or
14    secondary school located in Illinois.
15        (7) Until July 1, 2003, proceeds of that portion of
16    the selling price of a passenger car the sale of which is
17    subject to the Replacement Vehicle Tax.
18        (8) Personal property sold to an Illinois county fair
19    association for use in conducting, operating, or promoting
20    the county fair.
21        (9) Personal property sold to a not-for-profit arts or
22    cultural organization that establishes, by proof required
23    by the Department by rule, that it has received an
24    exemption under Section 501(c)(3) of the Internal Revenue
25    Code and that is organized and operated primarily for the
26    presentation or support of arts or cultural programming,

 

 

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1    activities, or services. These organizations include, but
2    are not limited to, music and dramatic arts organizations
3    such as symphony orchestras and theatrical groups, arts
4    and cultural service organizations, local arts councils,
5    visual arts organizations, and media arts organizations.
6    On and after July 1, 2001 (the effective date of Public Act
7    92-35), however, an entity otherwise eligible for this
8    exemption shall not make tax-free purchases unless it has
9    an active identification number issued by the Department.
10        (10) Personal property sold by a corporation, society,
11    association, foundation, institution, or organization,
12    other than a limited liability company, that is organized
13    and operated as a not-for-profit service enterprise for
14    the benefit of persons 65 years of age or older if the
15    personal property was not purchased by the enterprise for
16    the purpose of resale by the enterprise.
17        (11) Personal property sold to a governmental body, to
18    a corporation, society, association, foundation, or
19    institution organized and operated exclusively for
20    charitable, religious, or educational purposes, or to a
21    not-for-profit corporation, society, association,
22    foundation, institution, or organization that has no
23    compensated officers or employees and that is organized
24    and operated primarily for the recreation of persons 55
25    years of age or older. A limited liability company may
26    qualify for the exemption under this paragraph only if the

 

 

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1    limited liability company is organized and operated
2    exclusively for educational purposes. On and after July 1,
3    1987, however, no entity otherwise eligible for this
4    exemption shall make tax-free purchases unless it has an
5    active identification number issued by the Department.
6        (12) (Blank).
7        (12-5) On and after July 1, 2003 and through June 30,
8    2004, motor vehicles of the second division with a gross
9    vehicle weight in excess of 8,000 pounds that are subject
10    to the commercial distribution fee imposed under Section
11    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
12    2004 and through June 30, 2005, the use in this State of
13    motor vehicles of the second division: (i) with a gross
14    vehicle weight rating in excess of 8,000 pounds; (ii) that
15    are subject to the commercial distribution fee imposed
16    under Section 3-815.1 of the Illinois Vehicle Code; and
17    (iii) that are primarily used for commercial purposes.
18    Through June 30, 2005, this exemption applies to repair
19    and replacement parts added after the initial purchase of
20    such a motor vehicle if that motor vehicle is used in a
21    manner that would qualify for the rolling stock exemption
22    otherwise provided for in this Act. For purposes of this
23    paragraph, "used for commercial purposes" means the
24    transportation of persons or property in furtherance of
25    any commercial or industrial enterprise whether for-hire
26    or not.

 

 

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1        (13) Proceeds from sales to owners, lessors, or
2    shippers of tangible personal property that is utilized by
3    interstate carriers for hire for use as rolling stock
4    moving in interstate commerce and equipment operated by a
5    telecommunications provider, licensed as a common carrier
6    by the Federal Communications Commission, which is
7    permanently installed in or affixed to aircraft moving in
8    interstate commerce.
9        (14) Machinery and equipment that will be used by the
10    purchaser, or a lessee of the purchaser, primarily in the
11    process of manufacturing or assembling tangible personal
12    property for wholesale or retail sale or lease, whether
13    the sale or lease is made directly by the manufacturer or
14    by some other person, whether the materials used in the
15    process are owned by the manufacturer or some other
16    person, or whether the sale or lease is made apart from or
17    as an incident to the seller's engaging in the service
18    occupation of producing machines, tools, dies, jigs,
19    patterns, gauges, or other similar items of no commercial
20    value on special order for a particular purchaser. The
21    exemption provided by this paragraph (14) does not include
22    machinery and equipment used in (i) the generation of
23    electricity for wholesale or retail sale; (ii) the
24    generation or treatment of natural or artificial gas for
25    wholesale or retail sale that is delivered to customers
26    through pipes, pipelines, or mains; or (iii) the treatment

 

 

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1    of water for wholesale or retail sale that is delivered to
2    customers through pipes, pipelines, or mains. The
3    provisions of Public Act 98-583 are declaratory of
4    existing law as to the meaning and scope of this
5    exemption. Beginning on July 1, 2017, the exemption
6    provided by this paragraph (14) includes, but is not
7    limited to, graphic arts machinery and equipment, as
8    defined in paragraph (4) of this Section.
9        (15) Proceeds of mandatory service charges separately
10    stated on customers' bills for purchase and consumption of
11    food and beverages, to the extent that the proceeds of the
12    service charge are in fact turned over as tips or as a
13    substitute for tips to the employees who participate
14    directly in preparing, serving, hosting or cleaning up the
15    food or beverage function with respect to which the
16    service charge is imposed.
17        (16) Tangible personal property sold to a purchaser if
18    the purchaser is exempt from use tax by operation of
19    federal law. This paragraph is exempt from the provisions
20    of Section 2-70.
21        (17) Tangible personal property sold to a common
22    carrier by rail or motor that receives the physical
23    possession of the property in Illinois and that transports
24    the property, or shares with another common carrier in the
25    transportation of the property, out of Illinois on a
26    standard uniform bill of lading showing the seller of the

 

 

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1    property as the shipper or consignor of the property to a
2    destination outside Illinois, for use outside Illinois.
3        (18) Legal tender, currency, medallions, or gold or
4    silver coinage issued by the State of Illinois, the
5    government of the United States of America, or the
6    government of any foreign country, and bullion.
7        (19) Until July 1, 2003, oil field exploration,
8    drilling, and production equipment, including (i) rigs and
9    parts of rigs, rotary rigs, cable tool rigs, and workover
10    rigs, (ii) pipe and tubular goods, including casing and
11    drill strings, (iii) pumps and pump-jack units, (iv)
12    storage tanks and flow lines, (v) any individual
13    replacement part for oil field exploration, drilling, and
14    production equipment, and (vi) machinery and equipment
15    purchased for lease; but excluding motor vehicles required
16    to be registered under the Illinois Vehicle Code.
17        (20) Photoprocessing machinery and equipment,
18    including repair and replacement parts, both new and used,
19    including that manufactured on special order, certified by
20    the purchaser to be used primarily for photoprocessing,
21    and including photoprocessing machinery and equipment
22    purchased for lease.
23        (21) Until July 1, 2028, coal and aggregate
24    exploration, mining, off-highway hauling, processing,
25    maintenance, and reclamation equipment, including
26    replacement parts and equipment, and including equipment

 

 

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1    purchased for lease, but excluding motor vehicles required
2    to be registered under the Illinois Vehicle Code. The
3    changes made to this Section by Public Act 97-767 apply on
4    and after July 1, 2003, but no claim for credit or refund
5    is allowed on or after August 16, 2013 (the effective date
6    of Public Act 98-456) for such taxes paid during the
7    period beginning July 1, 2003 and ending on August 16,
8    2013 (the effective date of Public Act 98-456).
9        (22) Until June 30, 2013, fuel and petroleum products
10    sold to or used by an air carrier, certified by the carrier
11    to be used for consumption, shipment, or storage in the
12    conduct of its business as an air common carrier, for a
13    flight destined for or returning from a location or
14    locations outside the United States without regard to
15    previous or subsequent domestic stopovers.
16        Beginning July 1, 2013, fuel and petroleum products
17    sold to or used by an air carrier, certified by the carrier
18    to be used for consumption, shipment, or storage in the
19    conduct of its business as an air common carrier, for a
20    flight that (i) is engaged in foreign trade or is engaged
21    in trade between the United States and any of its
22    possessions and (ii) transports at least one individual or
23    package for hire from the city of origination to the city
24    of final destination on the same aircraft, without regard
25    to a change in the flight number of that aircraft.
26        (23) A transaction in which the purchase order is

 

 

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1    received by a florist who is located outside Illinois, but
2    who has a florist located in Illinois deliver the property
3    to the purchaser or the purchaser's donee in Illinois.
4        (24) Fuel consumed or used in the operation of ships,
5    barges, or vessels that are used primarily in or for the
6    transportation of property or the conveyance of persons
7    for hire on rivers bordering on this State if the fuel is
8    delivered by the seller to the purchaser's barge, ship, or
9    vessel while it is afloat upon that bordering river.
10        (25) Except as provided in item (25-5) of this
11    Section, a motor vehicle sold in this State to a
12    nonresident even though the motor vehicle is delivered to
13    the nonresident in this State, if the motor vehicle is not
14    to be titled in this State, and if a drive-away permit is
15    issued to the motor vehicle as provided in Section 3-603
16    of the Illinois Vehicle Code or if the nonresident
17    purchaser has vehicle registration plates to transfer to
18    the motor vehicle upon returning to his or her home state.
19    The issuance of the drive-away permit or having the
20    out-of-state registration plates to be transferred is
21    prima facie evidence that the motor vehicle will not be
22    titled in this State.
23        (25-5) The exemption under item (25) does not apply if
24    the state in which the motor vehicle will be titled does
25    not allow a reciprocal exemption for a motor vehicle sold
26    and delivered in that state to an Illinois resident but

 

 

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

 

 

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1        (25-7) Beginning on July 1, 2007, no tax is imposed
2    under this Act on the sale of an aircraft, as defined in
3    Section 3 of the Illinois Aeronautics Act, if all of the
4    following conditions are met:
5            (1) the aircraft leaves this State within 15 days
6        after the later of either the issuance of the final
7        billing for the sale of the aircraft, or the
8        authorized approval for return to service, completion
9        of the maintenance record entry, and completion of the
10        test flight and ground test for inspection, as
11        required by 14 CFR C.F.R. 91.407;
12            (2) the aircraft is not based or registered in
13        this State after the sale of the aircraft; and
14            (3) the seller retains in his or her books and
15        records and provides to the Department a signed and
16        dated certification from the purchaser, on a form
17        prescribed by the Department, certifying that the
18        requirements of this item (25-7) are met. The
19        certificate must also include the name and address of
20        the purchaser, the address of the location where the
21        aircraft is to be titled or registered, the address of
22        the primary physical location of the aircraft, and
23        other information that the Department may reasonably
24        require.
25        For purposes of this item (25-7):
26        "Based in this State" means hangared, stored, or

 

 

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1    otherwise used, excluding post-sale customizations as
2    defined in this Section, for 10 or more days in each
3    12-month period immediately following the date of the sale
4    of the aircraft.
5        "Registered in this State" means an aircraft
6    registered with the Department of Transportation,
7    Aeronautics Division, or titled or registered with the
8    Federal Aviation Administration to an address located in
9    this State.
10        This paragraph (25-7) is exempt from the provisions of
11    Section 2-70.
12        (26) Semen used for artificial insemination of
13    livestock for direct agricultural production.
14        (27) Horses, or interests in horses, registered with
15    and meeting the requirements of any of the Arabian Horse
16    Club Registry of America, Appaloosa Horse Club, American
17    Quarter Horse Association, United States Trotting
18    Association, or Jockey Club, as appropriate, used for
19    purposes of breeding or racing for prizes. This item (27)
20    is exempt from the provisions of Section 2-70, and the
21    exemption provided for under this item (27) applies for
22    all periods beginning May 30, 1995, but no claim for
23    credit or refund is allowed on or after January 1, 2008
24    (the effective date of Public Act 95-88) for such taxes
25    paid during the period beginning May 30, 2000 and ending
26    on January 1, 2008 (the effective date of Public Act

 

 

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1    95-88).
2        (28) Computers and communications equipment utilized
3    for any hospital purpose and equipment used in the
4    diagnosis, analysis, or treatment of hospital patients
5    sold to a lessor who leases the equipment, under a lease of
6    one year or longer executed or in effect at the time of the
7    purchase, to a hospital that has been issued an active tax
8    exemption identification number by the Department under
9    Section 1g of this Act.
10        (29) Personal property sold to a lessor who leases the
11    property, under a lease of one year or longer executed or
12    in effect at the time of the purchase, to a governmental
13    body that has been issued an active tax exemption
14    identification number by the Department under Section 1g
15    of this Act.
16        (30) Beginning with taxable years ending on or after
17    December 31, 1995 and ending with taxable years ending on
18    or before December 31, 2004, personal property that is
19    donated for disaster relief to be used in a State or
20    federally declared disaster area in Illinois or bordering
21    Illinois by a manufacturer or retailer that is registered
22    in this State to a corporation, society, association,
23    foundation, or institution that has been issued a sales
24    tax exemption identification number by the Department that
25    assists victims of the disaster who reside within the
26    declared disaster area.

 

 

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1        (31) Beginning with taxable years ending on or after
2    December 31, 1995 and ending with taxable years ending on
3    or before December 31, 2004, personal property that is
4    used in the performance of infrastructure repairs in this
5    State, including but not limited to municipal roads and
6    streets, access roads, bridges, sidewalks, waste disposal
7    systems, water and sewer line extensions, water
8    distribution and purification facilities, storm water
9    drainage and retention facilities, and sewage treatment
10    facilities, resulting from a State or federally declared
11    disaster in Illinois or bordering Illinois when such
12    repairs are initiated on facilities located in the
13    declared disaster area within 6 months after the disaster.
14        (32) Beginning July 1, 1999, game or game birds sold
15    at a "game breeding and hunting preserve area" as that
16    term is used in the Wildlife Code. This paragraph is
17    exempt from the provisions of Section 2-70.
18        (33) A motor vehicle, as that term is defined in
19    Section 1-146 of the Illinois Vehicle Code, that is
20    donated to a corporation, limited liability company,
21    society, association, foundation, or institution that is
22    determined by the Department to be organized and operated
23    exclusively for educational purposes. For purposes of this
24    exemption, "a corporation, limited liability company,
25    society, association, foundation, or institution organized
26    and operated exclusively for educational purposes" means

 

 

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1    all tax-supported public schools, private schools that
2    offer systematic instruction in useful branches of
3    learning by methods common to public schools and that
4    compare favorably in their scope and intensity with the
5    course of study presented in tax-supported schools, and
6    vocational or technical schools or institutes organized
7    and operated exclusively to provide a course of study of
8    not less than 6 weeks duration and designed to prepare
9    individuals to follow a trade or to pursue a manual,
10    technical, mechanical, industrial, business, or commercial
11    occupation.
12        (34) Beginning January 1, 2000, personal property,
13    including food, purchased through fundraising events for
14    the benefit of a public or private elementary or secondary
15    school, a group of those schools, or one or more school
16    districts if the events are sponsored by an entity
17    recognized by the school district that consists primarily
18    of volunteers and includes parents and teachers of the
19    school children. This paragraph does not apply to
20    fundraising events (i) for the benefit of private home
21    instruction or (ii) for which the fundraising entity
22    purchases the personal property sold at the events from
23    another individual or entity that sold the property for
24    the purpose of resale by the fundraising entity and that
25    profits from the sale to the fundraising entity. This
26    paragraph is exempt from the provisions of Section 2-70.

 

 

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1        (35) Beginning January 1, 2000 and through December
2    31, 2001, new or used automatic vending machines that
3    prepare and serve hot food and beverages, including
4    coffee, soup, and other items, and replacement parts for
5    these machines. Beginning January 1, 2002 and through June
6    30, 2003, machines and parts for machines used in
7    commercial, coin-operated amusement and vending business
8    if a use or occupation tax is paid on the gross receipts
9    derived from the use of the commercial, coin-operated
10    amusement and vending machines. This paragraph is exempt
11    from the provisions of Section 2-70.
12        (35-5) Beginning August 23, 2001 and through June 30,
13    2016, food for human consumption that is to be consumed
14    off the premises where it is sold (other than alcoholic
15    beverages, soft drinks, and food that has been prepared
16    for immediate consumption) and prescription and
17    nonprescription medicines, drugs, medical appliances, and
18    insulin, urine testing materials, syringes, and needles
19    used by diabetics, for human use, when purchased for use
20    by a person receiving medical assistance under Article V
21    of the Illinois Public Aid Code who resides in a licensed
22    long-term care facility, as defined in the Nursing Home
23    Care Act, or a licensed facility as defined in the ID/DD
24    Community Care Act, the MC/DD Act, or the Specialized
25    Mental Health Rehabilitation Act of 2013.
26        (36) Beginning August 2, 2001, computers and

 

 

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1    communications equipment utilized for any hospital purpose
2    and equipment used in the diagnosis, analysis, or
3    treatment of hospital patients sold to a lessor who leases
4    the equipment, under a lease of one year or longer
5    executed or in effect at the time of the purchase, to a
6    hospital that has been issued an active tax exemption
7    identification number by the Department under Section 1g
8    of this Act. This paragraph is exempt from the provisions
9    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
21    of the property in Illinois, temporarily store the
22    property in Illinois (i) for the purpose of subsequently
23    transporting it outside this State for use or consumption
24    thereafter solely outside this State or (ii) for the
25    purpose of being processed, fabricated, or manufactured
26    into, attached to, or incorporated into other tangible

 

 

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1    personal property to be transported outside this State and
2    thereafter used or consumed solely outside this State. The
3    Director of Revenue shall, pursuant to rules adopted in
4    accordance with the Illinois Administrative Procedure Act,
5    issue a permit to any taxpayer in good standing with the
6    Department who is eligible for the exemption under this
7    paragraph (38). The permit issued under this paragraph
8    (38) shall authorize the holder, to the extent and in the
9    manner specified in the rules adopted under this Act, to
10    purchase tangible personal property from a retailer exempt
11    from the taxes imposed by this Act. Taxpayers shall
12    maintain all necessary books and records to substantiate
13    the use and consumption of all such tangible personal
14    property outside of the State of 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 and continuing through
24    December 31, 2024, materials, parts, equipment,
25    components, and furnishings incorporated into or upon an
26    aircraft as part of the modification, refurbishment,

 

 

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1    completion, replacement, repair, or maintenance of the
2    aircraft. This exemption includes consumable supplies used
3    in the modification, refurbishment, completion,
4    replacement, repair, and maintenance of aircraft. However,
5    until January 1, 2024, this exemption , but excludes any
6    materials, parts, equipment, components, and consumable
7    supplies used in the modification, replacement, repair,
8    and maintenance of aircraft engines or power plants,
9    whether such engines or power plants are installed or
10    uninstalled upon any such aircraft. "Consumable supplies"
11    include, but are not limited to, adhesive, tape,
12    sandpaper, general purpose lubricants, cleaning solution,
13    latex gloves, and protective films.
14        Beginning January 1, 2010 and continuing through
15    December 31, 2023, this This exemption applies only to the
16    sale of qualifying tangible personal property to persons
17    who modify, refurbish, complete, replace, or maintain an
18    aircraft and who (i) hold an Air Agency Certificate and
19    are empowered to operate an approved repair station by the
20    Federal Aviation Administration, (ii) have a Class IV
21    Rating, and (iii) conduct operations in accordance with
22    Part 145 of the Federal Aviation Regulations. The
23    exemption does not include aircraft operated by a
24    commercial air carrier providing scheduled passenger air
25    service pursuant to authority issued under Part 121 or
26    Part 129 of the Federal Aviation Regulations. From January

 

 

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1    1, 2024 through December 31, 2024, this exemption applies
2    only to the use of qualifying tangible personal property
3    by: (A) persons who modify, refurbish, complete, repair,
4    replace, or maintain aircraft and who (i) hold an Air
5    Agency Certificate and are empowered to operate an
6    approved repair station by the Federal Aviation
7    Administration, (ii) have a Class IV Rating, and (iii)
8    conduct operations in accordance with Part 145 of the
9    Federal Aviation Regulations; and (B) persons who engage
10    in the modification, replacement, repair, and maintenance
11    of aircraft engines or power plants without regard to
12    whether or not those persons meet the qualifications of
13    item (A).
14        The changes made to this paragraph (40) by Public Act
15    98-534 are declarative of existing law. It is the intent
16    of the General Assembly that the exemption under this
17    paragraph (40) applies continuously from January 1, 2010
18    through December 31, 2024; however, no claim for credit or
19    refund is allowed for taxes paid as a result of the
20    disallowance of this exemption on or after January 1, 2015
21    and prior to February 5, 2020 (the effective date of
22    Public Act 101-629) this amendatory Act of the 101st
23    General Assembly.
24        (41) Tangible personal property sold to a
25    public-facilities corporation, as described in Section
26    11-65-10 of the Illinois Municipal Code, for purposes of

 

 

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1    constructing or furnishing a municipal convention hall,
2    but only if the legal title to the municipal convention
3    hall is transferred to the municipality without any
4    further consideration by or on behalf of the municipality
5    at the time of the completion of the municipal convention
6    hall or upon the retirement or redemption of any bonds or
7    other debt instruments issued by the public-facilities
8    corporation in connection with the development of the
9    municipal convention hall. This exemption includes
10    existing public-facilities corporations as provided in
11    Section 11-65-25 of the Illinois Municipal Code. This
12    paragraph is exempt from the provisions of Section 2-70.
13        (42) Beginning January 1, 2017 and through December
14    31, 2026, menstrual pads, tampons, and menstrual cups.
15        (43) Merchandise that is subject to the Rental
16    Purchase Agreement Occupation and Use Tax. The purchaser
17    must certify that the item is purchased to be rented
18    subject to a rental purchase agreement, as defined in the
19    Rental Purchase Agreement Act, and provide proof of
20    registration under the Rental Purchase Agreement
21    Occupation and Use Tax Act. This paragraph is exempt from
22    the provisions of Section 2-70.
23        (44) Qualified tangible personal property used in the
24    construction or operation of a data center that has been
25    granted a certificate of exemption by the Department of
26    Commerce and Economic Opportunity, whether that tangible

 

 

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1    personal property is purchased by the owner, operator, or
2    tenant of the data center or by a contractor or
3    subcontractor of the owner, operator, or tenant. Data
4    centers that would have qualified for a certificate of
5    exemption prior to January 1, 2020 had Public Act 101-31
6    this amendatory Act of the 101st General Assembly been in
7    effect, may apply for and obtain an exemption for
8    subsequent purchases of computer equipment or enabling
9    software purchased or leased to upgrade, supplement, or
10    replace computer equipment or enabling software purchased
11    or leased in the original investment that would have
12    qualified.
13        The Department of Commerce and Economic Opportunity
14    shall grant a certificate of exemption under this item
15    (44) to qualified data centers as defined by Section
16    605-1025 of the Department of Commerce and Economic
17    Opportunity Law of the Civil Administrative Code of
18    Illinois.
19        For the purposes of this item (44):
20            "Data center" means a building or a series of
21        buildings rehabilitated or constructed to house
22        working servers in one physical location or multiple
23        sites within the State of Illinois.
24            "Qualified tangible personal property" means:
25        electrical systems and equipment; climate control and
26        chilling equipment and systems; mechanical systems and

 

 

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1        equipment; monitoring and secure systems; emergency
2        generators; hardware; computers; servers; data storage
3        devices; network connectivity equipment; racks;
4        cabinets; telecommunications cabling infrastructure;
5        raised floor systems; peripheral components or
6        systems; software; mechanical, electrical, or plumbing
7        systems; battery systems; cooling systems and towers;
8        temperature control systems; other cabling; and other
9        data center infrastructure equipment and systems
10        necessary to operate qualified tangible personal
11        property, including fixtures; and component parts of
12        any of the foregoing, including installation,
13        maintenance, repair, refurbishment, and replacement of
14        qualified tangible personal property to generate,
15        transform, transmit, distribute, or manage electricity
16        necessary to operate qualified tangible personal
17        property; and all other tangible personal property
18        that is essential to the operations of a computer data
19        center. The term "qualified tangible personal
20        property" also includes building materials physically
21        incorporated into the qualifying data center. To
22        document the exemption allowed under this Section, the
23        retailer must obtain from the purchaser a copy of the
24        certificate of eligibility issued by the Department of
25        Commerce and Economic Opportunity.
26        This item (44) is exempt from the provisions of

 

 

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1    Section 2-70.
2        (45) Beginning January 1, 2020 and through December
3    31, 2020, sales of tangible personal property made by a
4    marketplace seller over a marketplace for which tax is due
5    under this Act but for which use tax has been collected and
6    remitted to the Department by a marketplace facilitator
7    under Section 2d of the Use Tax Act are exempt from tax
8    under this Act. A marketplace seller claiming this
9    exemption shall maintain books and records demonstrating
10    that the use tax on such sales has been collected and
11    remitted by a marketplace facilitator. Marketplace sellers
12    that have properly remitted tax under this Act on such
13    sales may file a claim for credit as provided in Section 6
14    of this Act. No claim is allowed, however, for such taxes
15    for which a credit or refund has been issued to the
16    marketplace facilitator under the Use Tax Act, or for
17    which the marketplace facilitator has filed a claim for
18    credit or refund under the Use Tax Act.
19        (46) Beginning July 1, 2022, breast pumps, breast pump
20    collection and storage supplies, and breast pump kits.
21    This item (46) is exempt from the provisions of Section
22    2-70. As used in this item (46):
23        "Breast pump" means an electrically controlled or
24    manually controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

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1    other power supply unit that is used to power the pump
2    device and is packaged and sold with the pump device at the
3    time of sale.
4        "Breast pump collection and storage supplies" means
5    items of tangible personal property designed or marketed
6    to be used in conjunction with a breast pump to collect
7    milk expressed from a human breast and to store collected
8    milk until it is ready for consumption.
9        "Breast pump collection and storage supplies"
10    includes, but is not limited to: breast shields and breast
11    shield connectors; breast pump tubes and tubing adapters;
12    breast pump valves and membranes; backflow protectors and
13    backflow protector adaptors; bottles and bottle caps
14    specific to the operation of the breast pump; and breast
15    milk storage bags.
16        "Breast pump collection and storage supplies" does not
17    include: (1) bottles and bottle caps not specific to the
18    operation of the breast pump; (2) breast pump travel bags
19    and other similar carrying accessories, including ice
20    packs, labels, and other similar products; (3) breast pump
21    cleaning supplies; (4) nursing bras, bra pads, breast
22    shells, and other similar products; and (5) creams,
23    ointments, and other similar products that relieve
24    breastfeeding-related symptoms or conditions of the
25    breasts or nipples, unless sold as part of a breast pump
26    kit that is pre-packaged by the breast pump manufacturer

 

 

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1    or distributor.
2        "Breast pump kit" means a kit that: (1) contains no
3    more than a breast pump, breast pump collection and
4    storage supplies, a rechargeable battery for operating the
5    breast pump, a breastmilk cooler, bottle stands, ice
6    packs, and a breast pump carrying case; and (2) is
7    pre-packaged as a breast pump kit by the breast pump
8    manufacturer or distributor.
9        (47) (46) Tangible personal property sold by or on
10    behalf of the State Treasurer pursuant to the Revised
11    Uniform Unclaimed Property Act. This item (47) (46) is
12    exempt from the provisions of Section 2-70.
13(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
14101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
158-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
16102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
17eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".