(35 ILCS 105/3-5)
(Text of Section from P.A. 103-9, Article 5, Section 5-5) Sec. 3-5. Exemptions. Use of the following tangible personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county
fair association for use in conducting, operating, or promoting the
county fair.
(3) Personal property purchased by a not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Personal property purchased by a governmental body, by a
corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes, or
by a not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers or employees
and that is organized and operated primarily for the recreation of persons
55 years of age or older. A limited liability company may qualify for the
exemption under this paragraph only if the limited liability company is
organized and operated exclusively for educational purposes. On and after July
1, 1987, however, no entity otherwise eligible for this exemption shall make
tax-free purchases unless it has an active exemption identification number
issued by the Department.
(5) Until July 1, 2003, a passenger car that is a replacement vehicle to
the extent that the
purchase price of the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and replacement
parts, both new and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic arts production,
and including machinery and equipment purchased for lease.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver coinage issued by
the State of Illinois, the government of the United States of America, or the
government of any foreign country, and bullion.
(9) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located in
Illinois.
(10) A motor vehicle that is used for automobile renting, as defined in the
Automobile Renting Occupation and Use Tax Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the purchaser
to be used primarily for production agriculture or State or federal
agricultural programs, including individual replacement parts for
the machinery and equipment, including machinery and equipment
purchased
for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor
vehicles required to be
registered under the Illinois Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (11).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to, soil testing
sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and
activities such as, but not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals. This item (11) is exempt
from the provisions of
Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft. (13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages purchased at retail from a retailer, to the extent that the proceeds
of the service charge are in fact turned over as tips or as a substitute
for tips to the employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with respect to which
the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods,
including casing and drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual replacement part for oil
field exploration, drilling, and production equipment, and (vi) machinery and
equipment purchased
for lease; but excluding motor vehicles required to be registered under the
Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and
including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and equipment, sold as a
unit or kit,
assembled or installed by the retailer, certified by the user to be used
only for the production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal use of the
user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment used
primarily in the process of manufacturing or assembling tangible
personal property for wholesale or retail sale or lease, whether that sale
or lease is made directly by the manufacturer or by some other person,
whether the materials used in the process are
owned by the manufacturer or some other person, or whether that sale or
lease is made apart from or as an incident to the seller's engaging in
the service occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption provided by this paragraph (18) includes production related tangible personal property, as defined in Section 3-50, purchased on or after July 1, 2019. The exemption provided by this paragraph (18) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (18) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or purchaser's donee
inside Illinois when the purchase order for that personal property was
received by a florist located outside Illinois who has a florist located
inside Illinois deliver the personal property.
(20) Semen used for artificial insemination of livestock for direct
agricultural production.
(21) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (21) is exempt from the provisions of Section 3-90, and the exemption provided for under this item (21) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital
that has been issued an active tax exemption identification number by
the
Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for
this exemption or is used in any other non-exempt manner, the lessor
shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(23) Personal property purchased by a lessor who leases the
property, under
a
lease of
one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active sales tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
property is leased in a manner that does not qualify for
this exemption
or used in any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(24) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-90.
(27) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois
Vehicle Code, that is donated to a corporation, limited liability company,
society, association, foundation, or institution that is determined by the
Department to be organized and operated exclusively for educational purposes.
For purposes of this exemption, "a corporation, limited liability company,
society, association, foundation, or institution organized and operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(28) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-90.
(29) Beginning January 1, 2000 and through December 31, 2001, new or
used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated amusement and vending business if a use or occupation
tax is paid on the gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case may be, based on
the fair market value of the property at the time the nonqualifying use
occurs. No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor who leases the property,
under a lease of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this Act, to a
governmental body that has been issued an active sales tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other nonexempt manner, the lessor
shall be liable for the tax imposed under this Act or the Service Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to claim a refund
of that amount from the lessor. If, however, that amount is not refunded to
the lessee for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004, the use in this State of motor vehicles of
the second division with a gross vehicle weight in excess of 8,000 pounds and
that are subject to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such a motor vehicle if
that motor
vehicle is used in a manner that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this paragraph, the term "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise, whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-90. (35) Beginning January 1, 2010 and continuing through December 31, 2029, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft. However, until January 1, 2024, this exemption excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. Beginning January 1, 2010 and continuing through December 31, 2023, this exemption applies only to the use of qualifying tangible personal property by persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. From January 1, 2024 through December 31, 2029, this exemption applies only to the use of qualifying tangible personal property by: (A) persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations; and (B) persons who engage in the modification, replacement, repair, and maintenance of aircraft engines or power plants without regard to whether or not those persons meet the qualifications of item (A). The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (35) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (35) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629). (36) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-90. (37) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups. (38) Merchandise that is subject to the Rental Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 3-90. (39) Tangible personal property purchased by a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-90. (40) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified. The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (40) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois. For the purposes of this item (40): "Data center" means a building or a series of |
| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (40) is exempt from the provisions of Section 3-90.
(41) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (41) is exempt from the provisions of Section 3-90. As used in this item (41):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(42) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (42) is exempt from the provisions of Section 3-90.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 5-5, eff. 6-7-23.)
(Text of Section from P.A. 103-9, Article 15, Section 15-5)
Sec. 3-5. Exemptions. Use of the following tangible personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county
fair association for use in conducting, operating, or promoting the
county fair.
(3) Personal property purchased by a not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Personal property purchased by a governmental body, by a
corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes, or
by a not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers or employees
and that is organized and operated primarily for the recreation of persons
55 years of age or older. A limited liability company may qualify for the
exemption under this paragraph only if the limited liability company is
organized and operated exclusively for educational purposes. On and after July
1, 1987, however, no entity otherwise eligible for this exemption shall make
tax-free purchases unless it has an active exemption identification number
issued by the Department.
(5) Until July 1, 2003, a passenger car that is a replacement vehicle to
the extent that the
purchase price of the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and replacement
parts, both new and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic arts production,
and including machinery and equipment purchased for lease.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver coinage issued by
the State of Illinois, the government of the United States of America, or the
government of any foreign country, and bullion.
(9) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located in
Illinois.
(10) A motor vehicle that is used for automobile renting, as defined in the
Automobile Renting Occupation and Use Tax Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the purchaser
to be used primarily for production agriculture or State or federal
agricultural programs, including individual replacement parts for
the machinery and equipment, including machinery and equipment
purchased
for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor
vehicles required to be
registered under the Illinois Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (11).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to, soil testing
sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and
activities such as, but not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture.
This item (11) is exempt
from the provisions of
Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages purchased at retail from a retailer, to the extent that the proceeds
of the service charge are in fact turned over as tips or as a substitute
for tips to the employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with respect to which
the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods,
including casing and drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual replacement part for oil
field exploration, drilling, and production equipment, and (vi) machinery and
equipment purchased
for lease; but excluding motor vehicles required to be registered under the
Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and
including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and equipment, sold as a
unit or kit,
assembled or installed by the retailer, certified by the user to be used
only for the production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal use of the
user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment used
primarily in the process of manufacturing or assembling tangible
personal property for wholesale or retail sale or lease, whether that sale
or lease is made directly by the manufacturer or by some other person,
whether the materials used in the process are
owned by the manufacturer or some other person, or whether that sale or
lease is made apart from or as an incident to the seller's engaging in
the service occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption provided by this paragraph (18) includes production related tangible personal property, as defined in Section 3-50, purchased on or after July 1, 2019. The exemption provided by this paragraph (18) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (18) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or purchaser's donee
inside Illinois when the purchase order for that personal property was
received by a florist located outside Illinois who has a florist located
inside Illinois deliver the personal property.
(20) Semen used for artificial insemination of livestock for direct
agricultural production.
(21) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (21) is exempt from the provisions of Section 3-90, and the exemption provided for under this item (21) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital
that has been issued an active tax exemption identification number by
the
Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for
this exemption or is used in any other non-exempt manner, the lessor
shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(23) Personal property purchased by a lessor who leases the
property, under
a
lease of
one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active sales tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
property is leased in a manner that does not qualify for
this exemption
or used in any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(24) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-90.
(27) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois
Vehicle Code, that is donated to a corporation, limited liability company,
society, association, foundation, or institution that is determined by the
Department to be organized and operated exclusively for educational purposes.
For purposes of this exemption, "a corporation, limited liability company,
society, association, foundation, or institution organized and operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(28) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-90.
(29) Beginning January 1, 2000 and through December 31, 2001, new or
used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated amusement and vending business if a use or occupation
tax is paid on the gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case may be, based on
the fair market value of the property at the time the nonqualifying use
occurs. No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor who leases the property,
under a lease of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this Act, to a
governmental body that has been issued an active sales tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other nonexempt manner, the lessor
shall be liable for the tax imposed under this Act or the Service Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to claim a refund
of that amount from the lessor. If, however, that amount is not refunded to
the lessee for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004, the use in this State of motor vehicles of
the second division with a gross vehicle weight in excess of 8,000 pounds and
that are subject to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such a motor vehicle if
that motor
vehicle is used in a manner that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this paragraph, the term "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise, whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the use of qualifying tangible personal property by persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (35) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (35) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(36) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-90.
(37) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-90.
(40) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (40) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (40) is exempt from the provisions of Section 3-90.
(41) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (41) is exempt from the provisions of Section 3-90. As used in this item (41):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(42) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (42) is exempt from the provisions of Section 3-90.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 15, Section 15-5, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 3-5. Exemptions. Use of the following tangible personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county
fair association for use in conducting, operating, or promoting the
county fair.
(3) Personal property purchased by a not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Personal property purchased by a governmental body, by a
corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes, or
by a not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers or employees
and that is organized and operated primarily for the recreation of persons
55 years of age or older. A limited liability company may qualify for the
exemption under this paragraph only if the limited liability company is
organized and operated exclusively for educational purposes. On and after July
1, 1987, however, no entity otherwise eligible for this exemption shall make
tax-free purchases unless it has an active exemption identification number
issued by the Department.
(5) Until July 1, 2003, a passenger car that is a replacement vehicle to
the extent that the
purchase price of the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and replacement
parts, both new and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic arts production,
and including machinery and equipment purchased for lease.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver coinage issued by
the State of Illinois, the government of the United States of America, or the
government of any foreign country, and bullion.
(9) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located in
Illinois.
(10) A motor vehicle that is used for automobile renting, as defined in the
Automobile Renting Occupation and Use Tax Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the purchaser
to be used primarily for production agriculture or State or federal
agricultural programs, including individual replacement parts for
the machinery and equipment, including machinery and equipment
purchased
for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor
vehicles required to be
registered under the Illinois Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (11).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to, soil testing
sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and
activities such as, but not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals. This item (11) is exempt
from the provisions of
Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages purchased at retail from a retailer, to the extent that the proceeds
of the service charge are in fact turned over as tips or as a substitute
for tips to the employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with respect to which
the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods,
including casing and drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual replacement part for oil
field exploration, drilling, and production equipment, and (vi) machinery and
equipment purchased
for lease; but excluding motor vehicles required to be registered under the
Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and
including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and equipment, sold as a
unit or kit,
assembled or installed by the retailer, certified by the user to be used
only for the production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal use of the
user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment used
primarily in the process of manufacturing or assembling tangible
personal property for wholesale or retail sale or lease, whether that sale
or lease is made directly by the manufacturer or by some other person,
whether the materials used in the process are
owned by the manufacturer or some other person, or whether that sale or
lease is made apart from or as an incident to the seller's engaging in
the service occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption provided by this paragraph (18) includes production related tangible personal property, as defined in Section 3-50, purchased on or after July 1, 2019. The exemption provided by this paragraph (18) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (18) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or purchaser's donee
inside Illinois when the purchase order for that personal property was
received by a florist located outside Illinois who has a florist located
inside Illinois deliver the personal property.
(20) Semen used for artificial insemination of livestock for direct
agricultural production.
(21) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (21) is exempt from the provisions of Section 3-90, and the exemption provided for under this item (21) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital
that has been issued an active tax exemption identification number by
the
Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for
this exemption or is used in any other non-exempt manner, the lessor
shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(23) Personal property purchased by a lessor who leases the
property, under
a
lease of
one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active sales tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
property is leased in a manner that does not qualify for
this exemption
or used in any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(24) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-90.
(27) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois
Vehicle Code, that is donated to a corporation, limited liability company,
society, association, foundation, or institution that is determined by the
Department to be organized and operated exclusively for educational purposes.
For purposes of this exemption, "a corporation, limited liability company,
society, association, foundation, or institution organized and operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(28) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-90.
(29) Beginning January 1, 2000 and through December 31, 2001, new or
used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated amusement and vending business if a use or occupation
tax is paid on the gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case may be, based on
the fair market value of the property at the time the nonqualifying use
occurs. No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor who leases the property,
under a lease of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this Act, to a
governmental body that has been issued an active sales tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other nonexempt manner, the lessor
shall be liable for the tax imposed under this Act or the Service Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to claim a refund
of that amount from the lessor. If, however, that amount is not refunded to
the lessee for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004, the use in this State of motor vehicles of
the second division with a gross vehicle weight in excess of 8,000 pounds and
that are subject to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such a motor vehicle if
that motor
vehicle is used in a manner that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this paragraph, the term "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise, whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the use of qualifying tangible personal property by persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (35) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (35) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(36) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-90.
(37) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-90.
(40) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (40) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (40) is exempt from the provisions of Section 3-90.
(41) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (41) is exempt from the provisions of Section 3-90. As used in this item (41):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(42) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (42) is exempt from the provisions of Section 3-90.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-384)
Sec. 3-5. Exemptions. Use of the following tangible personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county
fair association for use in conducting, operating, or promoting the
county fair.
(3) Personal property purchased by a not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services. These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Except as otherwise provided in this Act, personal property purchased by a governmental body, by a
corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes, or
by a not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers or employees
and that is organized and operated primarily for the recreation of persons
55 years of age or older. A limited liability company may qualify for the
exemption under this paragraph only if the limited liability company is
organized and operated exclusively for educational purposes. On and after July
1, 1987, however, no entity otherwise eligible for this exemption shall make
tax-free purchases unless it has an active exemption identification number
issued by the Department.
(5) Until July 1, 2003, a passenger car that is a replacement vehicle to
the extent that the
purchase price of the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and replacement
parts, both new and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic arts production,
and including machinery and equipment purchased for lease.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver coinage issued by
the State of Illinois, the government of the United States of America, or the
government of any foreign country, and bullion.
(9) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located in
Illinois.
(10) A motor vehicle that is used for automobile renting, as defined in the
Automobile Renting Occupation and Use Tax Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the purchaser
to be used primarily for production agriculture or State or federal
agricultural programs, including individual replacement parts for
the machinery and equipment, including machinery and equipment
purchased
for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor
vehicles required to be
registered under the Illinois Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (11).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to, soil testing
sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and
activities such as, but not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals. This item (11) is exempt
from the provisions of
Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages purchased at retail from a retailer, to the extent that the proceeds
of the service charge are in fact turned over as tips or as a substitute
for tips to the employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with respect to which
the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods,
including casing and drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual replacement part for oil
field exploration, drilling, and production equipment, and (vi) machinery and
equipment purchased
for lease; but excluding motor vehicles required to be registered under the
Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and
including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and equipment, sold as a
unit or kit,
assembled or installed by the retailer, certified by the user to be used
only for the production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal use of the
user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment used
primarily in the process of manufacturing or assembling tangible
personal property for wholesale or retail sale or lease, whether that sale
or lease is made directly by the manufacturer or by some other person,
whether the materials used in the process are
owned by the manufacturer or some other person, or whether that sale or
lease is made apart from or as an incident to the seller's engaging in
the service occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption provided by this paragraph (18) includes production related tangible personal property, as defined in Section 3-50, purchased on or after July 1, 2019. The exemption provided by this paragraph (18) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (18) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or purchaser's donee
inside Illinois when the purchase order for that personal property was
received by a florist located outside Illinois who has a florist located
inside Illinois deliver the personal property.
(20) Semen used for artificial insemination of livestock for direct
agricultural production.
(21) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (21) is exempt from the provisions of Section 3-90, and the exemption provided for under this item (21) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008
for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital
that has been issued an active tax exemption identification number by
the
Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for
this exemption or is used in any other non-exempt manner, the lessor
shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(23) Personal property purchased by a lessor who leases the
property, under
a
lease of
one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active sales tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
property is leased in a manner that does not qualify for
this exemption
or used in any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(24) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code. This paragraph is exempt from the provisions
of
Section 3-90.
(27) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois
Vehicle Code, that is donated to a corporation, limited liability company,
society, association, foundation, or institution that is determined by the
Department to be organized and operated exclusively for educational purposes.
For purposes of this exemption, "a corporation, limited liability company,
society, association, foundation, or institution organized and operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(28) Beginning January 1, 2000, personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children. This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity. This paragraph is exempt
from the provisions
of Section 3-90.
(29) Beginning January 1, 2000 and through December 31, 2001, new or
used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated amusement and vending business if a use or occupation
tax is paid on the gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act. If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case may be, based on
the fair market value of the property at the time the nonqualifying use
occurs. No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor. If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor who leases the property,
under a lease of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this Act, to a
governmental body that has been issued an active sales tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other nonexempt manner, the lessor
shall be liable for the tax imposed under this Act or the Service Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to claim a refund
of that amount from the lessor. If, however, that amount is not refunded to
the lessee for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004, the use in this State of motor vehicles of
the second division with a gross vehicle weight in excess of 8,000 pounds and
that are subject to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such a motor vehicle if
that motor
vehicle is used in a manner that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this paragraph, the term "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise, whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the use of qualifying tangible personal property by persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (35) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (35) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(36) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 3-90.
(37) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-90.
(40) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (40) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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|
"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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|
This item (40) is exempt from the provisions of Section 3-90.
(41) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (41) is exempt from the provisions of Section 3-90. As used in this item (41):
"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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|
"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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|
"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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|
"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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|
"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(42) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (42) is exempt from the provisions of Section 3-90.
(43) Beginning on January 1, 2024, tangible personal property purchased by an active duty member of the armed forces of the United States who presents valid military identification and purchases the property using a form of payment where the federal government is the payor. The member of the armed forces must complete, at the point of sale, a form prescribed by the Department of Revenue documenting that the transaction is eligible for the exemption under this paragraph. Retailers must keep the form as documentation of the exemption in their records for a period of not less than 6 years. "Armed forces of the United States" means the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. This paragraph is exempt from the provisions of Section 3-90.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-384, eff. 1-1-24.)
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(35 ILCS 105/3-8) (Text of Section from P.A. 102-700) Sec. 3-8. Hospital exemption. (a) Tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act and meets the criteria for an exemption under this Section, is exempt from taxation under this Act. (b) A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois. (c) The following services and activities shall be considered for purposes of making the calculations required by subsection (b): (1) Charity care. Free or discounted services |
| provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
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(2) Health services to low-income and underserved
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| individuals. Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals. Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention; free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
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(3) Subsidy of State or local governments. Direct or
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| indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
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(4) Support for State health care programs for
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| low-income individuals. At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program. The amount of subsidy for purpose of this item (4) is calculated in the same manner as unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
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(5) Dual-eligible subsidy. The amount of subsidy
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| provided to government by treating dual-eligible Medicare/Medicaid patients. The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
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(6) Relief of the burden of government related to
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| health care. Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals. Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals. The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs. Such costs for the numerator and denominator shall be determined by multiplying gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I). In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
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(7) Any other activity by the relevant hospital
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| entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
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(d) The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b). For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year. If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for
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| consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
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(2) the amount of unreimbursed costs and the amount
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| of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
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|
(f) (Blank).
(g) Estimation of Exempt Property Tax Liability. The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the
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| estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
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(A) the lesser of (i) the actual assessed value,
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| if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
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(B) the applicable State equalization rate
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| (yielding the equalized assessed value), by
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(C) the applicable tax rate.
(2) The estimated assessed value of the exempt
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| portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
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(A) The "estimated fair market value of buildings
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| on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
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|
(B) Depreciation, for purposes of calculating the
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| estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings. If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
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|
(C) The estimated assessed value of the land
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| portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
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(3) The assessment factor, State equalization rate,
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| and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
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(4) The method utilized to calculate estimated
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| property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
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|
(h) For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,
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| building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
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|
(2) "Hospital owner" means a not-for-profit
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| corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
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|
(3) "Hospital affiliate" means any corporation,
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| partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
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(4) "Hospital system" means a hospital and one or
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| more other hospitals or hospital affiliates related by common control or ownership.
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|
(5) "Control" relating to hospital owners, hospital
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| affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
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(6) "Hospital applicant" means a hospital owner or
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| hospital affiliate that files an application for an exemption or renewal of exemption under this Section.
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(7) "Relevant hospital entity" means (A) the hospital
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| owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
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(8) "Subject property" means property used for the
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| calculation under subsection (b) of this Section.
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|
(9) "Hospital year" means the fiscal year of the
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| relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
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(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(k) This Section is exempt from the provisions of Section 3-90.
(Source: P.A. 102-700, eff. 4-19-22.)
(Text of Section from P.A. 102-886)
Sec. 3-8. Hospital exemption.
(a) Until July 1, 2027, tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act and meets the criteria for an exemption under this Section, is exempt from taxation under this Act.
(b) A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois.
(c) The following services and activities shall be considered for purposes of making the calculations required by subsection (b):
(1) Charity care. Free or discounted services
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| provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
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(2) Health services to low-income and underserved
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| individuals. Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals. Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention; free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
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(3) Subsidy of State or local governments. Direct or
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| indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
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(4) Support for State health care programs for
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| low-income individuals. At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program. The amount of subsidy for purpose of this item (4) is calculated in the same manner as unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
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(5) Dual-eligible subsidy. The amount of subsidy
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| provided to government by treating dual-eligible Medicare/Medicaid patients. The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
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(6) Relief of the burden of government related to
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| health care. Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals. Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals. The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs. Such costs for the numerator and denominator shall be determined by multiplying gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I). In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
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(7) Any other activity by the relevant hospital
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| entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
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(d) The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b). For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year. If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for
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| consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
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(2) the amount of unreimbursed costs and the amount
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| of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
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(f) (Blank).
(g) Estimation of Exempt Property Tax Liability. The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the
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| estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
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(A) the lesser of (i) the actual assessed value,
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| if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
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(B) the applicable State equalization rate
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| (yielding the equalized assessed value), by
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(C) the applicable tax rate.
(2) The estimated assessed value of the exempt
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| portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
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(A) The "estimated fair market value of buildings
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| on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
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(B) Depreciation, for purposes of calculating the
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| estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings. If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
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(C) The estimated assessed value of the land
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| portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
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(3) The assessment factor, State equalization rate,
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| and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
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(4) The method utilized to calculate estimated
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| property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
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(h) For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,
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| building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
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(2) "Hospital owner" means a not-for-profit
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| corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
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(3) "Hospital affiliate" means any corporation,
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| partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
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(4) "Hospital system" means a hospital and one or
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| more other hospitals or hospital affiliates related by common control or ownership.
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(5) "Control" relating to hospital owners, hospital
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| affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
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(6) "Hospital applicant" means a hospital owner or
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| hospital affiliate that files an application for an exemption or renewal of exemption under this Section.
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(7) "Relevant hospital entity" means (A) the hospital
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| owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
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(8) "Subject property" means property used for the
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| calculation under subsection (b) of this Section.
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(9) "Hospital year" means the fiscal year of the
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| relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
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(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(Source: P.A. 102-886, eff. 5-17-22 .)
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(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft, and
trailers that are required to be registered with an agency of this State,
each retailer
required or authorized to collect the tax imposed by this Act shall pay
to the Department the amount of such tax (except as otherwise provided)
at the time when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the retailer
for expenses incurred in collecting the tax, keeping records, preparing
and filing returns, remitting the tax and supplying data to the
Department on request. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. In the case of retailers who report and pay the
tax on a transaction by transaction basis, as provided in this Section,
such discount shall be taken with each such tax remittance instead of
when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final. A retailer need not remit
that part of any tax collected by him to the extent that he is required
to remit and does remit the tax imposed by the Retailers' Occupation
Tax Act, with respect to the sale of the same property. Where such tangible personal property is sold under a conditional
sales contract, or under any other form of sale wherein the payment of
the principal sum, or a part thereof, is extended beyond the close of
the period for which the return is filed, the retailer, in collecting
the tax (except as to motor vehicles, watercraft, aircraft, and
trailers that are required to be registered with an agency of this State),
may collect for each
tax return period, only the tax applicable to that part of the selling
price actually received during such tax return period. Except as provided in this Section, on or before the twentieth day of each
calendar month, such retailer shall file a return for the preceding
calendar month. Such return shall be filed on forms prescribed by the
Department and shall furnish such information as the Department may
reasonably require. The return shall include the gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month, quarter, or year, as appropriate, and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700. The return shall also include the amount of tax that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700. On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically. Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement. The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter. The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating: 1. The name of the seller; 2. The address of the principal place of business |
| from which he engages in the business of selling tangible personal property at retail in this State;
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3. The total amount of taxable receipts received by
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| him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
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4. The amount of credit provided in Section 2d of
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5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the
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Each retailer required or authorized to collect the tax imposed by this Act on aviation fuel sold at retail in this State during the preceding calendar month shall, instead of reporting and paying tax on aviation fuel as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, retailers collecting tax on aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Beginning October 1, 1993, a taxpayer who has an average monthly tax
liability of $150,000 or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all payments required by
rules of the Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities under this Act, and
under all other State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year. The term "average
monthly tax liability" means
the sum of the taxpayer's liabilities under this Act, and under all other State
and local occupation and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall notify
all taxpayers required to make payments by electronic funds transfer. All
taxpayers required to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with the permission of the
Department.
All taxpayers required to make payment by electronic funds transfer and any
taxpayers authorized to voluntarily make payments by electronic funds transfer
shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Retailers' Occupation Tax Act, the Service
Occupation Tax Act, the Service Use Tax Act was $10,000 or more
during
the preceding 4 complete calendar quarters, he shall file a return with the
Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Retailers' Occupation Tax Act,
the
Service Occupation Tax Act, and the Service Use Tax Act was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the
month during
which such liability is incurred.
If the month during which such tax
liability is incurred began prior to January 1, 1985, each payment shall be
in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the Department not to
exceed 1/4 of the average monthly liability of the taxpayer to the
Department for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability in such 4
quarter period). If the month during which such tax liability is incurred
begins on or after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's actual liability
for the month or 27.5% of the taxpayer's liability for the same calendar
month of the preceding year. If the month during which such tax liability
is incurred begins on or after January 1, 1987, and prior to January 1,
1988, each payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's liability for
the same calendar month of the preceding year. If the month during which such
tax liability is incurred begins on or after January 1, 1988, and prior to
January 1, 1989,
or begins on or after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the preceding year. If the
month during which such tax liability is incurred begins on or after January 1,
1989,
and prior to January 1, 1996, each payment shall be in an amount equal to 22.5%
of the taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited against the final tax
liability
of the taxpayer's return for that month. Before October 1, 2000, once
applicable, the requirement
of the making of quarter monthly payments to the Department shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000. However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement of the making
of quarter monthly payments to the Department shall continue until such
taxpayer's average monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a substantial
change in the taxpayer's business has occurred which causes the taxpayer to
anticipate that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated above, then
such taxpayer may petition the Department for a change in such taxpayer's
reporting status.
The Department shall change such taxpayer's reporting status unless it
finds that such change is seasonal in nature and not likely to be long
term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. If any such quarter monthly payment is not paid at the time or in
the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on
the difference between the minimum amount due and the amount of such
quarter monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds the taxpayer's
liabilities under this Act, the Retailers' Occupation Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown by an original
monthly return, the Department shall issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department in payment of
tax liability subsequently to be remitted by the taxpayer to the Department
or be assigned by the taxpayer to a similar taxpayer under this Act, the
Retailers' Occupation Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations to
be prescribed by the Department, except that if such excess payment is
shown on an original monthly return and is made after December 31, 1986, no
credit memorandum shall be issued, unless requested by the taxpayer. If no
such request is made, the taxpayer may credit such excess payment against
tax liability subsequently to be remitted by the taxpayer to the Department
under this Act, the Retailers' Occupation Tax Act, the Service Occupation
Tax Act or the Service Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department subsequently
determines that all or any part of the credit taken was not actually due to
the taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall be
reduced by 2.1% or 1.75% of the difference between the credit taken and
that actually due, and the taxpayer shall be liable for penalties and
interest on such difference.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department
does not exceed $200, the Department may authorize his returns to be
filed on a quarter annual basis, with the return for January, February,
and March of a given year being due by April 20 of such year; with the
return for April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return for
October, November and December of a given year being due by January 20
of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability to the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, except as otherwise provided in this Section, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than
one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 3-55 of
this Act, then
that seller may report the transfer of all the
aircraft, watercraft, motor
vehicles
or trailers involved in that transaction to the Department on the same
uniform
invoice-transaction reporting return form.
For purposes of this Section, "watercraft" means a Class 2, Class 3, or
Class
4 watercraft as defined in Section 3-2 of the Boat Registration and Safety Act,
a
personal watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.
The transaction reporting return in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5-402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the traded-in
tangible personal property, if any, to the extent to which Section 2 of
this Act allows an exemption for the value of traded-in property; the
balance payable after deducting such trade-in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5-402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded-in property, if any; the amount allowed by
the retailer for the traded-in tangible personal property, if any, to
the extent to which Section 2 of this Act allows an exemption for the
value of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the date of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so. The transaction reporting return and tax remittance or proof of
exemption from the tax that is imposed by this Act may be transmitted to
the Department by way of the State agency with which, or State officer
with whom, the tangible personal property must be titled or registered
(if titling or registration is required) if the Department and such
agency or State officer determine that this procedure will expedite the
processing of applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer. The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of tax or proof of
exemption made to the Department before the retailer is willing to take
these actions and such user has not paid the tax to the retailer, such
user may certify to the fact of such delay by the retailer, and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the selling price
of tangible personal property which he sells and the purchaser
thereafter returns such tangible personal property and the retailer
refunds the selling price thereof to the purchaser, such retailer shall
also refund, to the purchaser, the tax so collected from the purchaser.
When filing his return for the period in which he refunds such tax to
the purchaser, the retailer may deduct the amount of the tax so refunded
by him to the purchaser from any other use tax which such retailer may
be required to pay or remit to the Department, as shown by such return,
if the amount of the tax to be deducted was previously remitted to the
Department by such retailer. If the retailer has not previously
remitted the amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the purchaser.
Any retailer filing a return under this Section shall also include
(for the purpose of paying tax thereon) the total tax covered by such
return upon the selling price of tangible personal property purchased by
him at retail from a retailer, but as to which the tax imposed by this
Act was not collected from the retailer filing such return, and such
retailer shall remit the amount of such tax to the Department when
filing such return.
If experience indicates such action to be practicable, the Department
may prescribe and furnish a combination or joint return which will
enable retailers, who are required to file returns hereunder and also
under the Retailers' Occupation Tax Act, to furnish all the return
information required by both Acts on the one form.
Where the retailer has more than one business registered with the
Department under separate registration under this Act, such retailer may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
Beginning January 1, 1990, each month the Department shall pay into the
State and Local Sales Tax Reform Fund, a special fund in the State Treasury
which is hereby created, the net revenue realized for the preceding month
from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund 4% of the net revenue realized
for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is purchased
outside Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
Beginning January 1, 1990, each month the Department shall pay into
the State and Local Sales Tax Reform Fund, a special fund in the State
Treasury, 20% of the net revenue realized
for the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible personal property
which is purchased outside Illinois at retail from a retailer and which is
titled or registered by an agency of this State's government and (ii) aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuels Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 3-6, is imposed at the rate of 1.25%, then the Department shall pay 100% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the
State and Local Sales Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency of this
State's government.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each
month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Retailers' Occupation Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under this Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant to
this Act, (a) 1.75% thereof shall be paid
into the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case may be, of the
moneys received by the Department and required to be paid into the Build
Illinois Fund pursuant to Section 3 of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use
Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts being
hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case may be, of moneys being hereinafter called the "Tax Act Amount",
and (2) the amount transferred to the Build Illinois Fund from the State
and Local Sales Tax Reform Fund shall be less than the Annual Specified
Amount (as defined in Section 3 of the Retailers' Occupation Tax Act), an
amount equal to the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department pursuant to the
Tax Acts; and further provided, that if on the last business day of any
month the sum of (1) the Tax Act Amount required to be deposited into the
Build Illinois Bond Account in the Build Illinois Fund during such month
and (2) the amount transferred during such month to the Build Illinois Fund
from the State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from other moneys
received by the Department pursuant to the Tax Acts; and,
further provided, that in no event shall the payments required under the
preceding proviso result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of the greater
of (i) the Tax Act Amount or (ii) the Annual Specified Amount for such
fiscal year; and, further provided, that the amounts payable into the Build
Illinois Fund under this clause (b) shall be payable only until such time
as the aggregate amount on deposit under each trust
indenture securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any future investment
income, to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if any, and
interest on the Bonds secured by such indenture and on any Bonds expected
to be issued thereafter and all fees and costs payable with respect thereto,
all as certified by the Director of the
Bureau of the Budget (now Governor's Office of Management and Budget). If
on the last
business day of any month in which Bonds are outstanding pursuant to the
Build Illinois Bond Act, the aggregate of the moneys deposited
in the Build Illinois Bond Account in the Build Illinois Fund in such month
shall be less than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond Retirement and
Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid
from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the preceding
sentence and shall reduce the amount otherwise payable for such fiscal year
pursuant to clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge set forth
in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act into
the McCormick Place Expansion Project Fund in the specified fiscal years.
|
Fiscal Year | | Total Deposit | 1993 | | $0 | 1994 | | 53,000,000 | 1995 | | 58,000,000 | 1996 | | 61,000,000 | 1997 | | 64,000,000 | 1998 | | 68,000,000 | 1999 | | 71,000,000 | 2000 | | 75,000,000 | 2001 | | 80,000,000 | 2002 | | 93,000,000 | 2003 | | 99,000,000 | 2004 | | 103,000,000 | 2005 | | 108,000,000 | 2006 | | 113,000,000 | 2007 | | 119,000,000 | 2008 | | 126,000,000 | 2009 | | 132,000,000 | 2010 | | 139,000,000 | 2011 | | 146,000,000 | 2012 | | 153,000,000 | 2013 | | 161,000,000 | 2014 | | 170,000,000 | 2015 | | 179,000,000 | 2016 | | 189,000,000 | 2017 | | 199,000,000 | 2018 | | 210,000,000 | 2019 | | 221,000,000 | 2020 | | 233,000,000 | 2021 | | 300,000,000 | 2022 | | 300,000,000 | 2023 | | 300,000,000 | 2024 | | 300,000,000 | 2025 | | 300,000,000 | 2026 | | 300,000,000 | 2027 | | 375,000,000 | 2028 | | 375,000,000 | 2029 | | 375,000,000 | 2030 | | 375,000,000 | 2031 | | 375,000,000 | 2032 | | 375,000,000 | 2033 | | 375,000,000 | 2034 | | 375,000,000 | 2035 | | 375,000,000 | 2036 | | 450,000,000 | and | | |
each fiscal year | | |
thereafter that bonds | | |
are outstanding under | | |
Section 13.2 of the | | |
Metropolitan Pier and | | |
Exposition Authority Act, | | |
but not after fiscal year 2060. | | |
|
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto
hereafter enacted,
beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for the preceding
month from the 6.25% general rate on the selling price of tangible personal
property.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim, and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Deposit
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000,000
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$206,000,000
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$212,200,000
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$218,500,000
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$225,100,000
2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$288,700,000
2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$298,900,000
2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$309,300,000
2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$320,100,000
2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$331,200,000
2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$341,200,000
2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$351,400,000
2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$361,900,000
2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,800,000
2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$384,000,000
2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$395,500,000
2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$407,400,000
2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$419,600,000
2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$432,200,000
2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of this Act.
Of the remainder of the moneys received by the Department pursuant
to this Act, 75% thereof shall be paid into the State Treasury and 25%
shall be reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State
Finance Act.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected
by the State pursuant to this Act, less the amount paid out during that
month as refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
(Source: P.A. 102-700, Article 60, Section 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. 7-28-23.)
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