101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5100

 

Introduced 2/18/2020, by Rep. Dave Severin

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that if an in-State retailer or serviceman bids on a purchase order or contract to provide materials, equipment, or supplies to a municipality with a population under 1,000,000, and that purchase order or contract involves an amount in excess of $25,000, then the municipality may apply to the Department of Revenue for a certificate of exemption from the taxes imposed under specified local provisions of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act for the in-State retailer or serviceman, or a third-party supplier of the retailer or serviceman, with respect to the materials, equipment, or supplies covered by the bid if: at least one other bid is received from an out-of-State retailer or serviceman; the in-State retailer or serviceman demonstrates the necessity of the exemption in order to submit the lowest responsible bid, including substantive proof furnished by the retailer or serviceman to the municipality or the Department of Revenue; and the in-State retailer provides an itemized estimate of cost to the corporate authorities of the municipality. Defines terms. Makes confirming changes in the following Acts and Codes: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Salem Civic Center Law of 1997 of the Civic Center Code, the Metropolitan Pier and Exposition Authority Act, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5100LRB101 16844 HLH 66243 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-805 as follows:
 
7    (20 ILCS 2505/2505-805 new)
8    Sec. 2505-805. Exemption for materials, equipment, or
9supplies of a bid.
10    (a) As used in this Section:
11    "In-State retailer or serviceman" means a retailer or
12serviceman with a principal place of business located in the
13State.
14    "Local provisions of the Use Tax Act, the Service Use Tax
15Act, the Service Occupation Tax Act, and the Retailers'
16Occupation Tax Act" means use taxes or occupation taxes imposed
17under the Counties Code, the Illinois Municipal Code, the Salem
18Civic Center Law of 1997 of the Civic Center Code, the
19Metropolitan Pier and Exposition Authority Act, the Flood
20Prevention District Act, the Metro-East Park and Recreation
21District Act, the Local Mass Transit District Act, the Regional
22Transportation Authority Act, and the Water Commission Act of
231985.

 

 

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1    "Out-of-State retailer or serviceman" means a retailer or
2serviceman with a principal place of business located outside
3of the State.
4    (b) If an in-State retailer or serviceman bids on a
5purchase order or contract to provide materials, equipment, or
6supplies to a municipality with a population of less than
71,000,000, and that purchase order or contract involves an
8amount in excess of $25,000, then the municipality may apply to
9the Department of Revenue for a certificate of exemption from
10the taxes imposed under local provisions of the Use Tax Act,
11the Service Use Tax Act, the Service Occupation Tax Act, and
12the Retailers' Occupation Tax Act for the in-State retailer or
13serviceman, or a third-party supplier of the in-State retailer
14or serviceman, with respect to the materials, equipment, or
15supplies covered by the bid if all of the following conditions
16apply:
17        (1) at least one other bid is received from an
18    out-of-State retailer or serviceman;
19        (2) the in-State retailer or serviceman demonstrates
20    the necessity of the exemption in order to submit the
21    lowest responsible bid under the guidelines provided under
22    Division 9 or 10 of Article 8 of the Illinois Municipal
23    Code, including substantive proof furnished by the
24    retailer or serviceman to the municipality or the
25    Department of Revenue; and
26        (3) the in-State retailer provides an itemized

 

 

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1    estimate of cost to the corporate authorities of the
2    municipality.
 
3    Section 10. The Use Tax Act is amended by changing Section
43-5 as follows:
 
5    (35 ILCS 105/3-5)
6    Sec. 3-5. Exemptions. Use of the following tangible
7personal property is exempt from the tax imposed by this Act:
8    (1) Personal property purchased from a corporation,
9society, association, foundation, institution, or
10organization, other than a limited liability company, that is
11organized and operated as a not-for-profit service enterprise
12for the benefit of persons 65 years of age or older if the
13personal property was not purchased by the enterprise for the
14purpose of resale by the enterprise.
15    (2) Personal property purchased by a not-for-profit
16Illinois county fair association for use in conducting,
17operating, or promoting the county fair.
18    (3) Personal property purchased by a not-for-profit arts or
19cultural organization that establishes, by proof required by
20the Department by rule, that it has received an exemption under
21Section 501(c)(3) of the Internal Revenue Code and that is
22organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

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1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after July 1, 2001 (the
5effective date of Public Act 92-35), however, an entity
6otherwise eligible for this exemption shall not make tax-free
7purchases unless it has an active identification number issued
8by the Department.
9    (4) Personal property purchased by a governmental body, by
10a corporation, society, association, foundation, or
11institution organized and operated exclusively for charitable,
12religious, or educational purposes, or by a not-for-profit
13corporation, society, association, foundation, institution, or
14organization that has no compensated officers or employees and
15that is organized and operated primarily for the recreation of
16persons 55 years of age or older. A limited liability company
17may qualify for the exemption under this paragraph only if the
18limited liability company is organized and operated
19exclusively for educational purposes. On and after July 1,
201987, however, no entity otherwise eligible for this exemption
21shall make tax-free purchases unless it has an active exemption
22identification number issued by the Department.
23    (5) Until July 1, 2003, a passenger car that is a
24replacement vehicle to the extent that the purchase price of
25the car is subject to the Replacement Vehicle Tax.
26    (6) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order,
4certified by the purchaser to be used primarily for graphic
5arts production, and including machinery and equipment
6purchased for lease. Equipment includes chemicals or chemicals
7acting as catalysts but only if the chemicals or chemicals
8acting as catalysts effect a direct and immediate change upon a
9graphic arts product. Beginning on July 1, 2017, graphic arts
10machinery and equipment is included in the manufacturing and
11assembling machinery and equipment exemption under paragraph
12(18).
13    (7) Farm chemicals.
14    (8) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (9) Personal property purchased from a teacher-sponsored
19student organization affiliated with an elementary or
20secondary school located in Illinois.
21    (10) A motor vehicle that is used for automobile renting,
22as defined in the Automobile Renting Occupation and Use Tax
23Act.
24    (11) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

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1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required to
7be registered under Section 3-809 of the Illinois Vehicle Code,
8but excluding other motor vehicles required to be registered
9under the Illinois Vehicle Code. Horticultural polyhouses or
10hoop houses used for propagating, growing, or overwintering
11plants shall be considered farm machinery and equipment under
12this item (11). Agricultural chemical tender tanks and dry
13boxes shall include units sold separately from a motor vehicle
14required to be licensed and units sold mounted on a motor
15vehicle required to be licensed if the selling price of the
16tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes computers,
26sensors, software, and related equipment used primarily in the

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (11) is exempt from the
6provisions of Section 3-90.
7    (12) Until June 30, 2013, fuel and petroleum products sold
8to or used by an air common carrier, certified by the carrier
9to be used for consumption, shipment, or storage in the conduct
10of its business as an air common carrier, for a flight destined
11for or returning from a location or locations outside the
12United States without regard to previous or subsequent domestic
13stopovers.
14    Beginning July 1, 2013, fuel and petroleum products sold to
15or used by an air carrier, certified by the carrier to be used
16for consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight that (i) is
18engaged in foreign trade or is engaged in trade between the
19United States and any of its possessions and (ii) transports at
20least one individual or package for hire from the city of
21origination to the city of final destination on the same
22aircraft, without regard to a change in the flight number of
23that aircraft.
24    (13) Proceeds of mandatory service charges separately
25stated on customers' bills for the purchase and consumption of
26food and beverages purchased at retail from a retailer, to the

 

 

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1extent that the proceeds of the service charge are in fact
2turned over as tips or as a substitute for tips to the
3employees who participate directly in preparing, serving,
4hosting or cleaning up the food or beverage function with
5respect to which the service charge is imposed.
6    (14) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of rigs,
8rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
9tubular goods, including casing and drill strings, (iii) pumps
10and pump-jack units, (iv) storage tanks and flow lines, (v) any
11individual replacement part for oil field exploration,
12drilling, and production equipment, and (vi) machinery and
13equipment purchased for lease; but excluding motor vehicles
14required to be registered under the Illinois Vehicle Code.
15    (15) Photoprocessing machinery and equipment, including
16repair and replacement parts, both new and used, including that
17manufactured on special order, certified by the purchaser to be
18used primarily for photoprocessing, and including
19photoprocessing machinery and equipment purchased for lease.
20    (16) Until July 1, 2023, coal and aggregate exploration,
21mining, off-highway hauling, processing, maintenance, and
22reclamation equipment, including replacement parts and
23equipment, and including equipment purchased for lease, but
24excluding motor vehicles required to be registered under the
25Illinois Vehicle Code. The changes made to this Section by
26Public Act 97-767 apply on and after July 1, 2003, but no claim

 

 

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1for credit or refund is allowed on or after August 16, 2013
2(the effective date of Public Act 98-456) for such taxes paid
3during the period beginning July 1, 2003 and ending on August
416, 2013 (the effective date of Public Act 98-456).
5    (17) Until July 1, 2003, distillation machinery and
6equipment, sold as a unit or kit, assembled or installed by the
7retailer, certified by the user to be used only for the
8production of ethyl alcohol that will be used for consumption
9as motor fuel or as a component of motor fuel for the personal
10use of the user, and not subject to sale or resale.
11    (18) Manufacturing and assembling machinery and equipment
12used primarily in the process of manufacturing or assembling
13tangible personal property for wholesale or retail sale or
14lease, whether that sale or lease is made directly by the
15manufacturer or by some other person, whether the materials
16used in the process are owned by the manufacturer or some other
17person, or whether that sale or lease is made apart from or as
18an incident to the seller's engaging in the service occupation
19of producing machines, tools, dies, jigs, patterns, gauges, or
20other similar items of no commercial value on special order for
21a particular purchaser. The exemption provided by this
22paragraph (18) includes production related tangible personal
23property, as defined in Section 3-50, purchased on or after
24July 1, 2019. The exemption provided by this paragraph (18)
25does not include machinery and equipment used in (i) the
26generation of electricity for wholesale or retail sale; (ii)

 

 

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1the generation or treatment of natural or artificial gas for
2wholesale or retail sale that is delivered to customers through
3pipes, pipelines, or mains; or (iii) the treatment of water for
4wholesale or retail sale that is delivered to customers through
5pipes, pipelines, or mains. The provisions of Public Act 98-583
6are declaratory of existing law as to the meaning and scope of
7this exemption. Beginning on July 1, 2017, the exemption
8provided by this paragraph (18) includes, but is not limited
9to, graphic arts machinery and equipment, as defined in
10paragraph (6) of this Section.
11    (19) Personal property delivered to a purchaser or
12purchaser's donee inside Illinois when the purchase order for
13that personal property was received by a florist located
14outside Illinois who has a florist located inside Illinois
15deliver the personal property.
16    (20) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (21) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (21) is exempt from the provisions
24of Section 3-90, and the exemption provided for under this item
25(21) applies for all periods beginning May 30, 1995, but no
26claim for credit or refund is allowed on or after January 1,

 

 

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12008 for such taxes paid during the period beginning May 30,
22000 and ending on January 1, 2008.
3    (22) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients purchased by a
6lessor who leases the equipment, under a lease of one year or
7longer executed or in effect at the time the lessor would
8otherwise be subject to the tax imposed by this Act, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. If the equipment is leased in a
12manner that does not qualify for this exemption or is used in
13any other non-exempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Service Use Tax Act, as the
15case may be, based on the fair market value of the property at
16the time the non-qualifying use occurs. No lessor shall collect
17or attempt to collect an amount (however designated) that
18purports to reimburse that lessor for the tax imposed by this
19Act or the Service Use Tax Act, as the case may be, if the tax
20has not been paid by the lessor. If a lessor improperly
21collects any such amount from the lessee, the lessee shall have
22a legal right to claim a refund of that amount from the lessor.
23If, however, that amount is not refunded to the lessee for any
24reason, the lessor is liable to pay that amount to the
25Department.
26    (23) Personal property purchased by a lessor who leases the

 

 

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

 

 

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1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (25) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is used in the
7performance of infrastructure repairs in this State, including
8but not limited to municipal roads and streets, access roads,
9bridges, sidewalks, waste disposal systems, water and sewer
10line extensions, water distribution and purification
11facilities, storm water drainage and retention facilities, and
12sewage treatment facilities, resulting from a State or
13federally declared disaster in Illinois or bordering Illinois
14when such repairs are initiated on facilities located in the
15declared disaster area within 6 months after the disaster.
16    (26) Beginning July 1, 1999, game or game birds purchased
17at a "game breeding and hunting preserve area" as that term is
18used in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-90.
20    (27) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the Department
24to be organized and operated exclusively for educational
25purposes. For purposes of this exemption, "a corporation,
26limited liability company, society, association, foundation,

 

 

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1or institution organized and operated exclusively for
2educational purposes" means all tax-supported public schools,
3private schools that offer systematic instruction in useful
4branches of learning by methods common to public schools and
5that compare favorably in their scope and intensity with the
6course of study presented in tax-supported schools, and
7vocational or technical schools or institutes organized and
8operated exclusively to provide a course of study of not less
9than 6 weeks duration and designed to prepare individuals to
10follow a trade or to pursue a manual, technical, mechanical,
11industrial, business, or commercial occupation.
12    (28) Beginning January 1, 2000, personal property,
13including food, purchased through fundraising events for the
14benefit of a public or private elementary or secondary school,
15a group of those schools, or one or more school districts if
16the events are sponsored by an entity recognized by the school
17district that consists primarily of volunteers and includes
18parents and teachers of the school children. This paragraph
19does not apply to fundraising events (i) for the benefit of
20private home instruction or (ii) for which the fundraising
21entity purchases the personal property sold at the events from
22another individual or entity that sold the property for the
23purpose of resale by the fundraising entity and that profits
24from the sale to the fundraising entity. This paragraph is
25exempt from the provisions of Section 3-90.
26    (29) Beginning January 1, 2000 and through December 31,

 

 

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12001, new or used automatic vending machines that prepare and
2serve hot food and beverages, including coffee, soup, and other
3items, and replacement parts for these machines. Beginning
4January 1, 2002 and through June 30, 2003, machines and parts
5for machines used in commercial, coin-operated amusement and
6vending business if a use or occupation tax is paid on the
7gross receipts derived from the use of the commercial,
8coin-operated amusement and vending machines. This paragraph
9is exempt from the provisions of Section 3-90.
10    (30) Beginning January 1, 2001 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks, and food that has been prepared for immediate
14consumption) and prescription and nonprescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act, the MC/DD Act, or the
22Specialized Mental Health Rehabilitation Act of 2013.
23    (31) Beginning on August 2, 2001 (the effective date of
24Public Act 92-227), computers and communications equipment
25utilized for any hospital purpose and equipment used in the
26diagnosis, analysis, or treatment of hospital patients

 

 

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

 

 

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1that has been issued an active sales tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act. If the property is leased in a
4manner that does not qualify for this exemption or used in any
5other nonexempt manner, the lessor shall be liable for the tax
6imposed under this Act or the Service Use Tax Act, as the case
7may be, based on the fair market value of the property at the
8time the nonqualifying use occurs. No lessor shall collect or
9attempt to collect an amount (however designated) that purports
10to reimburse that lessor for the tax imposed by this Act or the
11Service Use Tax Act, as the case may be, if the tax has not been
12paid by the lessor. If a lessor improperly collects any such
13amount from the lessee, the lessee shall have a legal right to
14claim a refund of that amount from the lessor. If, however,
15that amount is not refunded to the lessee for any reason, the
16lessor is liable to pay that amount to the Department. This
17paragraph is exempt from the provisions of Section 3-90.
18    (33) On and after July 1, 2003 and through June 30, 2004,
19the use in this State of motor vehicles of the second division
20with a gross vehicle weight in excess of 8,000 pounds and that
21are subject to the commercial distribution fee imposed under
22Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
231, 2004 and through June 30, 2005, the use in this State of
24motor vehicles of the second division: (i) with a gross vehicle
25weight rating in excess of 8,000 pounds; (ii) that are subject
26to the commercial distribution fee imposed under Section

 

 

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13-815.1 of the Illinois Vehicle Code; and (iii) that are
2primarily used for commercial purposes. Through June 30, 2005,
3this exemption applies to repair and replacement parts added
4after the initial purchase of such a motor vehicle if that
5motor vehicle is used in a manner that would qualify for the
6rolling stock exemption otherwise provided for in this Act. For
7purposes of this paragraph, the term "used for commercial
8purposes" means the transportation of persons or property in
9furtherance of any commercial or industrial enterprise,
10whether for-hire or not.
11    (34) Beginning January 1, 2008, tangible personal property
12used in the construction or maintenance of a community water
13supply, as defined under Section 3.145 of the Environmental
14Protection Act, that is operated by a not-for-profit
15corporation that holds a valid water supply permit issued under
16Title IV of the Environmental Protection Act. This paragraph is
17exempt from the provisions of Section 3-90.
18    (35) Beginning January 1, 2010, materials, parts,
19equipment, components, and furnishings incorporated into or
20upon an aircraft as part of the modification, refurbishment,
21completion, replacement, repair, or maintenance of the
22aircraft. This exemption includes consumable supplies used in
23the modification, refurbishment, completion, replacement,
24repair, and maintenance of aircraft, but excludes any
25materials, parts, equipment, components, and consumable
26supplies used in the modification, replacement, repair, and

 

 

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1maintenance of aircraft engines or power plants, whether such
2engines or power plants are installed or uninstalled upon any
3such aircraft. "Consumable supplies" include, but are not
4limited to, adhesive, tape, sandpaper, general purpose
5lubricants, cleaning solution, latex gloves, and protective
6films. This exemption applies only to the use of qualifying
7tangible personal property by persons who modify, refurbish,
8complete, repair, replace, or maintain aircraft and who (i)
9hold an Air Agency Certificate and are empowered to operate an
10approved repair station by the Federal Aviation
11Administration, (ii) have a Class IV Rating, and (iii) conduct
12operations in accordance with Part 145 of the Federal Aviation
13Regulations. The exemption does not include aircraft operated
14by a commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part 129
16of the Federal Aviation Regulations. The changes made to this
17paragraph (35) by Public Act 98-534 are declarative of existing
18law.
19    (36) Tangible personal property purchased by a
20public-facilities corporation, as described in Section
2111-65-10 of the Illinois Municipal Code, for purposes of
22constructing or furnishing a municipal convention hall, but
23only if the legal title to the municipal convention hall is
24transferred to the municipality without any further
25consideration by or on behalf of the municipality at the time
26of the completion of the municipal convention hall or upon the

 

 

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1retirement or redemption of any bonds or other debt instruments
2issued by the public-facilities corporation in connection with
3the development of the municipal convention hall. This
4exemption includes existing public-facilities corporations as
5provided in Section 11-65-25 of the Illinois Municipal Code.
6This paragraph is exempt from the provisions of Section 3-90.
7    (37) Beginning January 1, 2017, menstrual pads, tampons,
8and menstrual cups.
9    (38) Merchandise that is subject to the Rental Purchase
10Agreement Occupation and Use Tax. The purchaser must certify
11that the item is purchased to be rented subject to a rental
12purchase agreement, as defined in the Rental Purchase Agreement
13Act, and provide proof of registration under the Rental
14Purchase Agreement Occupation and Use Tax Act. This paragraph
15is exempt from the provisions of Section 3-90.
16    (39) Tangible personal property purchased by a purchaser
17who is exempt from the tax imposed by this Act by operation of
18federal law. This paragraph is exempt from the provisions of
19Section 3-90.
20    (40) Qualified tangible personal property used in the
21construction or operation of a data center that has been
22granted a certificate of exemption by the Department of
23Commerce and Economic Opportunity, whether that tangible
24personal property is purchased by the owner, operator, or
25tenant of the data center or by a contractor or subcontractor
26of the owner, operator, or tenant. Data centers that would have

 

 

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1qualified for a certificate of exemption prior to January 1,
22020 had Public Act 101-31 this amendatory Act of the 101st
3General Assembly been in effect, may apply for and obtain an
4exemption for subsequent purchases of computer equipment or
5enabling software purchased or leased to upgrade, supplement,
6or replace computer equipment or enabling software purchased or
7leased in the original investment that would have qualified.
8    The Department of Commerce and Economic Opportunity shall
9grant a certificate of exemption under this item (40) to
10qualified data centers as defined by Section 605-1025 of the
11Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    For the purposes of this item (40):
14        "Data center" means a building or a series of buildings
15    rehabilitated or constructed to house working servers in
16    one physical location or multiple sites within the State of
17    Illinois.
18        "Qualified tangible personal property" means:
19    electrical systems and equipment; climate control and
20    chilling equipment and systems; mechanical systems and
21    equipment; monitoring and secure systems; emergency
22    generators; hardware; computers; servers; data storage
23    devices; network connectivity equipment; racks; cabinets;
24    telecommunications cabling infrastructure; raised floor
25    systems; peripheral components or systems; software;
26    mechanical, electrical, or plumbing systems; battery

 

 

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1    systems; cooling systems and towers; temperature control
2    systems; other cabling; and other data center
3    infrastructure equipment and systems necessary to operate
4    qualified tangible personal property, including fixtures;
5    and component parts of any of the foregoing, including
6    installation, maintenance, repair, refurbishment, and
7    replacement of qualified tangible personal property to
8    generate, transform, transmit, distribute, or manage
9    electricity necessary to operate qualified tangible
10    personal property; and all other tangible personal
11    property that is essential to the operations of a computer
12    data center. The term "qualified tangible personal
13    property" also includes building materials physically
14    incorporated in to the qualifying data center. To document
15    the exemption allowed under this Section, the retailer must
16    obtain from the purchaser a copy of the certificate of
17    eligibility issued by the Department of Commerce and
18    Economic Opportunity.
19    This item (40) is exempt from the provisions of Section
203-90.
21    (41) Tangible personal property for which a certificate of
22exemption has been issued under Section 2505-805 of the
23Department of Revenue Law of the Civil Administrative Code of
24Illinois. This paragraph is exempt from the provisions of
25Section 3-90.
26(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;

 

 

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1100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
21-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
37-12-19; revised 9-23-19.)
 
4    Section 15. The Service Use Tax Act is amended by changing
5Section 3-5 as follows:
 
6    (35 ILCS 110/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a non-profit Illinois
17county fair association for use in conducting, operating, or
18promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or
24support of arts or cultural programming, activities, or

 

 

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1services. These organizations include, but are not limited to,
2music and dramatic arts organizations such as symphony
3orchestras and theatrical groups, arts and cultural service
4organizations, local arts councils, visual arts organizations,
5and media arts organizations. On and after July 1, 2001 (the
6effective date of Public Act 92-35), however, an entity
7otherwise eligible for this exemption shall not make tax-free
8purchases unless it has an active identification number issued
9by the Department.
10    (4) Legal tender, currency, medallions, or gold or silver
11coinage issued by the State of Illinois, the government of the
12United States of America, or the government of any foreign
13country, and bullion.
14    (5) Until July 1, 2003 and beginning again on September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new and
17used, and including that manufactured on special order or
18purchased for lease, certified by the purchaser to be used
19primarily for graphic arts production. Equipment includes
20chemicals or chemicals acting as catalysts but only if the
21chemicals or chemicals acting as catalysts effect a direct and
22immediate change upon a graphic arts product. Beginning on July
231, 2017, graphic arts machinery and equipment is included in
24the manufacturing and assembling machinery and equipment
25exemption under Section 2 of this Act.
26    (6) Personal property purchased from a teacher-sponsored

 

 

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1student organization affiliated with an elementary or
2secondary school located in Illinois.
3    (7) Farm machinery and equipment, both new and used,
4including that manufactured on special order, certified by the
5purchaser to be used primarily for production agriculture or
6State or federal agricultural programs, including individual
7replacement parts for the machinery and equipment, including
8machinery and equipment purchased for lease, and including
9implements of husbandry defined in Section 1-130 of the
10Illinois Vehicle Code, farm machinery and agricultural
11chemical and fertilizer spreaders, and nurse wagons required to
12be registered under Section 3-809 of the Illinois Vehicle Code,
13but excluding other motor vehicles required to be registered
14under the Illinois Vehicle Code. Horticultural polyhouses or
15hoop houses used for propagating, growing, or overwintering
16plants shall be considered farm machinery and equipment under
17this item (7). Agricultural chemical tender tanks and dry boxes
18shall include units sold separately from a motor vehicle
19required to be licensed and units sold mounted on a motor
20vehicle required to be licensed if the selling price of the
21tender is separately stated.
22    Farm machinery and equipment shall include precision
23farming equipment that is installed or purchased to be
24installed on farm machinery and equipment including, but not
25limited to, tractors, harvesters, sprayers, planters, seeders,
26or spreaders. Precision farming equipment includes, but is not

 

 

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1limited to, soil testing sensors, computers, monitors,
2software, global positioning and mapping systems, and other
3such equipment.
4    Farm machinery and equipment also includes computers,
5sensors, software, and related equipment used primarily in the
6computer-assisted operation of production agriculture
7facilities, equipment, and activities such as, but not limited
8to, the collection, monitoring, and correlation of animal and
9crop data for the purpose of formulating animal diets and
10agricultural chemicals. This item (7) is exempt from the
11provisions of Section 3-75.
12    (8) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the conduct
15of its business as an air common carrier, for a flight destined
16for or returning from a location or locations outside the
17United States without regard to previous or subsequent domestic
18stopovers.
19    Beginning July 1, 2013, fuel and petroleum products sold to
20or used by an air carrier, certified by the carrier to be used
21for consumption, shipment, or storage in the conduct of its
22business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports at
25least one individual or package for hire from the city of
26origination to the city of final destination on the same

 

 

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

 

 

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1    (12) Until July 1, 2023, coal and aggregate exploration,
2mining, off-highway hauling, processing, maintenance, and
3reclamation equipment, including replacement parts and
4equipment, and including equipment purchased for lease, but
5excluding motor vehicles required to be registered under the
6Illinois Vehicle Code. The changes made to this Section by
7Public Act 97-767 apply on and after July 1, 2003, but no claim
8for credit or refund is allowed on or after August 16, 2013
9(the effective date of Public Act 98-456) for such taxes paid
10during the period beginning July 1, 2003 and ending on August
1116, 2013 (the effective date of Public Act 98-456).
12    (13) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (14) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (14) is exempt from the provisions
20of Section 3-75, and the exemption provided for under this item
21(14) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 (the effective date of Public Act 95-88) for such taxes
24paid during the period beginning May 30, 2000 and ending on
25January 1, 2008 (the effective date of Public Act 95-88).
26    (15) Computers and communications equipment utilized for

 

 

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

 

 

HB5100- 30 -LRB101 16844 HLH 66243 b

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12    (19) Beginning July 1, 1999, game or game birds purchased
13at a "game breeding and hunting preserve area" as that term is
14used in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 3-75.
16    (20) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

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1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (21) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-75.
22    (22) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

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1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 3-75.
6    (23) Beginning August 23, 2001 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act, the MC/DD Act, or the
18Specialized Mental Health Rehabilitation Act of 2013.
19    (24) Beginning on August 2, 2001 (the effective date of
20Public Act 92-227), computers and communications equipment
21utilized for any hospital purpose and equipment used in the
22diagnosis, analysis, or treatment of hospital patients
23purchased by a lessor who leases the equipment, under a lease
24of one year or longer executed or in effect at the time the
25lessor would otherwise be subject to the tax imposed by this
26Act, to a hospital that has been issued an active tax exemption

 

 

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

 

 

HB5100- 35 -LRB101 16844 HLH 66243 b

1imposed under this Act or the Use Tax Act, as the case may be,
2based on the fair market value of the property at the time the
3nonqualifying use occurs. No lessor shall collect or attempt to
4collect an amount (however designated) that purports to
5reimburse that lessor for the tax imposed by this Act or the
6Use Tax Act, as the case may be, if the tax has not been paid by
7the lessor. If a lessor improperly collects any such amount
8from the lessee, the lessee shall have a legal right to claim a
9refund of that amount from the lessor. If, however, that amount
10is not refunded to the lessee for any reason, the lessor is
11liable to pay that amount to the Department. This paragraph is
12exempt from the provisions of Section 3-75.
13    (26) Beginning January 1, 2008, tangible personal property
14used in the construction or maintenance of a community water
15supply, as defined under Section 3.145 of the Environmental
16Protection Act, that is operated by a not-for-profit
17corporation that holds a valid water supply permit issued under
18Title IV of the Environmental Protection Act. This paragraph is
19exempt from the provisions of Section 3-75.
20    (27) Beginning January 1, 2010, materials, parts,
21equipment, components, and furnishings incorporated into or
22upon an aircraft as part of the modification, refurbishment,
23completion, replacement, repair, or maintenance of the
24aircraft. This exemption includes consumable supplies used in
25the modification, refurbishment, completion, replacement,
26repair, and maintenance of aircraft, but excludes any

 

 

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1materials, parts, equipment, components, and consumable
2supplies used in the modification, replacement, repair, and
3maintenance of aircraft engines or power plants, whether such
4engines or power plants are installed or uninstalled upon any
5such aircraft. "Consumable supplies" include, but are not
6limited to, adhesive, tape, sandpaper, general purpose
7lubricants, cleaning solution, latex gloves, and protective
8films. This exemption applies only to the use of qualifying
9tangible personal property transferred incident to the
10modification, refurbishment, completion, replacement, repair,
11or maintenance of aircraft by persons who (i) hold an Air
12Agency Certificate and are empowered to operate an approved
13repair station by the Federal Aviation Administration, (ii)
14have a Class IV Rating, and (iii) conduct operations in
15accordance with Part 145 of the Federal Aviation Regulations.
16The exemption does not include aircraft operated by a
17commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations. The changes made to this
20paragraph (27) by Public Act 98-534 are declarative of existing
21law.
22    (28) Tangible personal property purchased by a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

HB5100- 37 -LRB101 16844 HLH 66243 b

1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt instruments
5issued by the public-facilities corporation in connection with
6the development of the municipal convention hall. This
7exemption includes existing public-facilities corporations as
8provided in Section 11-65-25 of the Illinois Municipal Code.
9This paragraph is exempt from the provisions of Section 3-75.
10    (29) Beginning January 1, 2017, menstrual pads, tampons,
11and menstrual cups.
12    (30) Tangible personal property transferred to a purchaser
13who is exempt from the tax imposed by this Act by operation of
14federal law. This paragraph is exempt from the provisions of
15Section 3-75.
16    (31) Qualified tangible personal property used in the
17construction or operation of a data center that has been
18granted a certificate of exemption by the Department of
19Commerce and Economic Opportunity, whether that tangible
20personal property is purchased by the owner, operator, or
21tenant of the data center or by a contractor or subcontractor
22of the owner, operator, or tenant. Data centers that would have
23qualified for a certificate of exemption prior to January 1,
242020 had this amendatory Act of the 101st General Assembly been
25in effect, may apply for and obtain an exemption for subsequent
26purchases of computer equipment or enabling software purchased

 

 

HB5100- 38 -LRB101 16844 HLH 66243 b

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

 

 

HB5100- 39 -LRB101 16844 HLH 66243 b

1    and component parts of any of the foregoing, including
2    installation, maintenance, repair, refurbishment, and
3    replacement of qualified tangible personal property to
4    generate, transform, transmit, distribute, or manage
5    electricity necessary to operate qualified tangible
6    personal property; and all other tangible personal
7    property that is essential to the operations of a computer
8    data center. The term "qualified tangible personal
9    property" also includes building materials physically
10    incorporated in to the qualifying data center. To document
11    the exemption allowed under this Section, the retailer must
12    obtain from the purchaser a copy of the certificate of
13    eligibility issued by the Department of Commerce and
14    Economic Opportunity.
15    This item (31) is exempt from the provisions of Section
163-75.
17    (32) Tangible personal property for which a certificate of
18exemption has been issued under Section 2505-805 of the
19Department of Revenue Law of the Civil Administrative Code of
20Illinois. This paragraph is exempt from the provisions of
21Section 3-75.
22(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
23100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
247-12-19.)
 
25    Section 20. The Service Occupation Tax Act is amended by

 

 

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1changing Section 3-5 as follows:
 
2    (35 ILCS 115/3-5)
3    Sec. 3-5. Exemptions. The following tangible personal
4property is exempt from the tax imposed by this Act:
5    (1) Personal property sold by a corporation, society,
6association, foundation, institution, or organization, other
7than a limited liability company, that is organized and
8operated as a not-for-profit service enterprise for the benefit
9of persons 65 years of age or older if the personal property
10was not purchased by the enterprise for the purpose of resale
11by the enterprise.
12    (2) Personal property purchased by a not-for-profit
13Illinois county fair association for use in conducting,
14operating, or promoting the county fair.
15    (3) Personal property purchased by any not-for-profit arts
16or cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after July 1, 2001 (the

 

 

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1effective date of Public Act 92-35), however, an entity
2otherwise eligible for this exemption shall not make tax-free
3purchases unless it has an active identification number issued
4by the Department.
5    (4) Legal tender, currency, medallions, or gold or silver
6coinage issued by the State of Illinois, the government of the
7United States of America, or the government of any foreign
8country, and bullion.
9    (5) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order or
13purchased for lease, certified by the purchaser to be used
14primarily for graphic arts production. Equipment includes
15chemicals or chemicals acting as catalysts but only if the
16chemicals or chemicals acting as catalysts effect a direct and
17immediate change upon a graphic arts product. Beginning on July
181, 2017, graphic arts machinery and equipment is included in
19the manufacturing and assembling machinery and equipment
20exemption under Section 2 of this Act.
21    (6) Personal property sold by a teacher-sponsored student
22organization affiliated with an elementary or secondary school
23located in Illinois.
24    (7) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

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1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required to
7be registered under Section 3-809 of the Illinois Vehicle Code,
8but excluding other motor vehicles required to be registered
9under the Illinois Vehicle Code. Horticultural polyhouses or
10hoop houses used for propagating, growing, or overwintering
11plants shall be considered farm machinery and equipment under
12this item (7). Agricultural chemical tender tanks and dry boxes
13shall include units sold separately from a motor vehicle
14required to be licensed and units sold mounted on a motor
15vehicle required to be licensed if the selling price of the
16tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes computers,
26sensors, software, and related equipment used primarily in the

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (7) is exempt from the
6provisions of Section 3-55.
7    (8) Until June 30, 2013, fuel and petroleum products sold
8to or used by an air common carrier, certified by the carrier
9to be used for consumption, shipment, or storage in the conduct
10of its business as an air common carrier, for a flight destined
11for or returning from a location or locations outside the
12United States without regard to previous or subsequent domestic
13stopovers.
14    Beginning July 1, 2013, fuel and petroleum products sold to
15or used by an air carrier, certified by the carrier to be used
16for consumption, shipment, or storage in the conduct of its
17business as an air common carrier, for a flight that (i) is
18engaged in foreign trade or is engaged in trade between the
19United States and any of its possessions and (ii) transports at
20least one individual or package for hire from the city of
21origination to the city of final destination on the same
22aircraft, without regard to a change in the flight number of
23that aircraft.
24    (9) Proceeds of mandatory service charges separately
25stated on customers' bills for the purchase and consumption of
26food and beverages, to the extent that the proceeds of the

 

 

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1service charge are in fact turned over as tips or as a
2substitute for tips to the employees who participate directly
3in preparing, serving, hosting or cleaning up the food or
4beverage function with respect to which the service charge is
5imposed.
6    (10) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of rigs,
8rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
9tubular goods, including casing and drill strings, (iii) pumps
10and pump-jack units, (iv) storage tanks and flow lines, (v) any
11individual replacement part for oil field exploration,
12drilling, and production equipment, and (vi) machinery and
13equipment purchased for lease; but excluding motor vehicles
14required to be registered under the Illinois Vehicle Code.
15    (11) Photoprocessing machinery and equipment, including
16repair and replacement parts, both new and used, including that
17manufactured on special order, certified by the purchaser to be
18used primarily for photoprocessing, and including
19photoprocessing machinery and equipment purchased for lease.
20    (12) Until July 1, 2023, coal and aggregate exploration,
21mining, off-highway hauling, processing, maintenance, and
22reclamation equipment, including replacement parts and
23equipment, and including equipment purchased for lease, but
24excluding motor vehicles required to be registered under the
25Illinois Vehicle Code. The changes made to this Section by
26Public Act 97-767 apply on and after July 1, 2003, but no claim

 

 

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1for credit or refund is allowed on or after August 16, 2013
2(the effective date of Public Act 98-456) for such taxes paid
3during the period beginning July 1, 2003 and ending on August
416, 2013 (the effective date of Public Act 98-456).
5    (13) Beginning January 1, 1992 and through June 30, 2016,
6food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages, soft
8drinks and food that has been prepared for immediate
9consumption) and prescription and non-prescription medicines,
10drugs, medical appliances, and insulin, urine testing
11materials, syringes, and needles used by diabetics, for human
12use, when purchased for use by a person receiving medical
13assistance under Article V of the Illinois Public Aid Code who
14resides in a licensed long-term care facility, as defined in
15the Nursing Home Care Act, or in a licensed facility as defined
16in the ID/DD Community Care Act, the MC/DD Act, or the
17Specialized Mental Health Rehabilitation Act of 2013.
18    (14) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (15) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (15) is exempt from the provisions
26of Section 3-55, and the exemption provided for under this item

 

 

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1(15) applies for all periods beginning May 30, 1995, but no
2claim for credit or refund is allowed on or after January 1,
32008 (the effective date of Public Act 95-88) for such taxes
4paid during the period beginning May 30, 2000 and ending on
5January 1, 2008 (the effective date of Public Act 95-88).
6    (16) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients sold to a lessor
9who leases the equipment, under a lease of one year or longer
10executed or in effect at the time of the purchase, to a
11hospital that has been issued an active tax exemption
12identification number by the Department under Section 1g of the
13Retailers' Occupation Tax Act.
14    (17) Personal property sold to a lessor who leases the
15property, under a lease of one year or longer executed or in
16effect at the time of the purchase, to a governmental body that
17has been issued an active tax exemption identification number
18by the Department under Section 1g of the Retailers' Occupation
19Tax Act.
20    (18) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is donated for
23disaster relief to be used in a State or federally declared
24disaster area in Illinois or bordering Illinois by a
25manufacturer or retailer that is registered in this State to a
26corporation, society, association, foundation, or institution

 

 

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1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (19) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is used in the
7performance of infrastructure repairs in this State, including
8but not limited to municipal roads and streets, access roads,
9bridges, sidewalks, waste disposal systems, water and sewer
10line extensions, water distribution and purification
11facilities, storm water drainage and retention facilities, and
12sewage treatment facilities, resulting from a State or
13federally declared disaster in Illinois or bordering Illinois
14when such repairs are initiated on facilities located in the
15declared disaster area within 6 months after the disaster.
16    (20) Beginning July 1, 1999, game or game birds sold at a
17"game breeding and hunting preserve area" as that term is used
18in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-55.
20    (21) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the Department
24to be organized and operated exclusively for educational
25purposes. For purposes of this exemption, "a corporation,
26limited liability company, society, association, foundation,

 

 

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1or institution organized and operated exclusively for
2educational purposes" means all tax-supported public schools,
3private schools that offer systematic instruction in useful
4branches of learning by methods common to public schools and
5that compare favorably in their scope and intensity with the
6course of study presented in tax-supported schools, and
7vocational or technical schools or institutes organized and
8operated exclusively to provide a course of study of not less
9than 6 weeks duration and designed to prepare individuals to
10follow a trade or to pursue a manual, technical, mechanical,
11industrial, business, or commercial occupation.
12    (22) Beginning January 1, 2000, personal property,
13including food, purchased through fundraising events for the
14benefit of a public or private elementary or secondary school,
15a group of those schools, or one or more school districts if
16the events are sponsored by an entity recognized by the school
17district that consists primarily of volunteers and includes
18parents and teachers of the school children. This paragraph
19does not apply to fundraising events (i) for the benefit of
20private home instruction or (ii) for which the fundraising
21entity purchases the personal property sold at the events from
22another individual or entity that sold the property for the
23purpose of resale by the fundraising entity and that profits
24from the sale to the fundraising entity. This paragraph is
25exempt from the provisions of Section 3-55.
26    (23) Beginning January 1, 2000 and through December 31,

 

 

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12001, new or used automatic vending machines that prepare and
2serve hot food and beverages, including coffee, soup, and other
3items, and replacement parts for these machines. Beginning
4January 1, 2002 and through June 30, 2003, machines and parts
5for machines used in commercial, coin-operated amusement and
6vending business if a use or occupation tax is paid on the
7gross receipts derived from the use of the commercial,
8coin-operated amusement and vending machines. This paragraph
9is exempt from the provisions of Section 3-55.
10    (24) Beginning on August 2, 2001 (the effective date of
11Public Act 92-227), computers and communications equipment
12utilized for any hospital purpose and equipment used in the
13diagnosis, analysis, or treatment of hospital patients sold to
14a lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act. This paragraph is exempt from
19the provisions of Section 3-55.
20    (25) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227), personal property sold to a lessor who
22leases the property, under a lease of one year or longer
23executed or in effect at the time of the purchase, to a
24governmental body that has been issued an active tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. This paragraph is exempt from

 

 

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1the provisions of Section 3-55.
2    (26) Beginning on January 1, 2002 and through June 30,
32016, tangible personal property purchased from an Illinois
4retailer by a taxpayer engaged in centralized purchasing
5activities in Illinois who will, upon receipt of the property
6in Illinois, temporarily store the property in Illinois (i) for
7the purpose of subsequently transporting it outside this State
8for use or consumption thereafter solely outside this State or
9(ii) for the purpose of being processed, fabricated, or
10manufactured into, attached to, or incorporated into other
11tangible personal property to be transported outside this State
12and thereafter used or consumed solely outside this State. The
13Director of Revenue shall, pursuant to rules adopted in
14accordance with the Illinois Administrative Procedure Act,
15issue a permit to any taxpayer in good standing with the
16Department who is eligible for the exemption under this
17paragraph (26). The permit issued under this paragraph (26)
18shall authorize the holder, to the extent and in the manner
19specified in the rules adopted under this Act, to purchase
20tangible personal property from a retailer exempt from the
21taxes imposed by this Act. Taxpayers shall maintain all
22necessary books and records to substantiate the use and
23consumption of all such tangible personal property outside of
24the State of Illinois.
25    (27) Beginning January 1, 2008, tangible personal property
26used in the construction or maintenance of a community water

 

 

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1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued under
4Title IV of the Environmental Protection Act. This paragraph is
5exempt from the provisions of Section 3-55.
6    (28) Tangible personal property sold to a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt instruments
15issued by the public-facilities corporation in connection with
16the development of the municipal convention hall. This
17exemption includes existing public-facilities corporations as
18provided in Section 11-65-25 of the Illinois Municipal Code.
19This paragraph is exempt from the provisions of Section 3-55.
20    (29) Beginning January 1, 2010, materials, parts,
21equipment, components, and furnishings incorporated into or
22upon an aircraft as part of the modification, refurbishment,
23completion, replacement, repair, or maintenance of the
24aircraft. This exemption includes consumable supplies used in
25the modification, refurbishment, completion, replacement,
26repair, and maintenance of aircraft, but excludes any

 

 

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1materials, parts, equipment, components, and consumable
2supplies used in the modification, replacement, repair, and
3maintenance of aircraft engines or power plants, whether such
4engines or power plants are installed or uninstalled upon any
5such aircraft. "Consumable supplies" include, but are not
6limited to, adhesive, tape, sandpaper, general purpose
7lubricants, cleaning solution, latex gloves, and protective
8films. This exemption applies only to the transfer of
9qualifying tangible personal property incident to the
10modification, refurbishment, completion, replacement, repair,
11or maintenance of an aircraft by persons who (i) hold an Air
12Agency Certificate and are empowered to operate an approved
13repair station by the Federal Aviation Administration, (ii)
14have a Class IV Rating, and (iii) conduct operations in
15accordance with Part 145 of the Federal Aviation Regulations.
16The exemption does not include aircraft operated by a
17commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations. The changes made to this
20paragraph (29) by Public Act 98-534 are declarative of existing
21law.
22    (30) Beginning January 1, 2017, menstrual pads, tampons,
23and menstrual cups.
24    (31) Tangible personal property transferred to a purchaser
25who is exempt from tax by operation of federal law. This
26paragraph is exempt from the provisions of Section 3-55.

 

 

HB5100- 53 -LRB101 16844 HLH 66243 b

1    (32) Qualified tangible personal property used in the
2construction or operation of a data center that has been
3granted a certificate of exemption by the Department of
4Commerce and Economic Opportunity, whether that tangible
5personal property is purchased by the owner, operator, or
6tenant of the data center or by a contractor or subcontractor
7of the owner, operator, or tenant. Data centers that would have
8qualified for a certificate of exemption prior to January 1,
92020 had this amendatory Act of the 101st General Assembly been
10in effect, may apply for and obtain an exemption for subsequent
11purchases of computer equipment or enabling software purchased
12or leased to upgrade, supplement, or replace computer equipment
13or enabling software purchased or leased in the original
14investment that would have qualified.
15    The Department of Commerce and Economic Opportunity shall
16grant a certificate of exemption under this item (32) to
17qualified data centers as defined by Section 605-1025 of the
18Department of Commerce and Economic Opportunity Law of the
19Civil Administrative Code of Illinois.
20    For the purposes of this item (32):
21        "Data center" means a building or a series of buildings
22    rehabilitated or constructed to house working servers in
23    one physical location or multiple sites within the State of
24    Illinois.
25        "Qualified tangible personal property" means:
26    electrical systems and equipment; climate control and

 

 

HB5100- 54 -LRB101 16844 HLH 66243 b

1    chilling equipment and systems; mechanical systems and
2    equipment; monitoring and secure systems; emergency
3    generators; hardware; computers; servers; data storage
4    devices; network connectivity equipment; racks; cabinets;
5    telecommunications cabling infrastructure; raised floor
6    systems; peripheral components or systems; software;
7    mechanical, electrical, or plumbing systems; battery
8    systems; cooling systems and towers; temperature control
9    systems; other cabling; and other data center
10    infrastructure equipment and systems necessary to operate
11    qualified tangible personal property, including fixtures;
12    and component parts of any of the foregoing, including
13    installation, maintenance, repair, refurbishment, and
14    replacement of qualified tangible personal property to
15    generate, transform, transmit, distribute, or manage
16    electricity necessary to operate qualified tangible
17    personal property; and all other tangible personal
18    property that is essential to the operations of a computer
19    data center. The term "qualified tangible personal
20    property" also includes building materials physically
21    incorporated in to the qualifying data center. To document
22    the exemption allowed under this Section, the retailer must
23    obtain from the purchaser a copy of the certificate of
24    eligibility issued by the Department of Commerce and
25    Economic Opportunity.
26    This item (32) is exempt from the provisions of Section

 

 

HB5100- 55 -LRB101 16844 HLH 66243 b

13-55.
2    (33) Tangible personal property for which a certificate of
3exemption has been issued under Section 2505-805 of the
4Department of Revenue Law of the Civil Administrative Code of
5Illinois. This paragraph is exempt from the provisions of
6Section 3-55.
7(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
8100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
97-12-19.)
 
10    Section 25. The Retailers' Occupation Tax Act is amended by
11changing Section 2-5 as follows:
 
12    (35 ILCS 120/2-5)
13    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
14sale of the following tangible personal property are exempt
15from the tax imposed by this Act:
16        (1) Farm chemicals.
17        (2) Farm machinery and equipment, both new and used,
18    including that manufactured on special order, certified by
19    the purchaser to be used primarily for production
20    agriculture or State or federal agricultural programs,
21    including individual replacement parts for the machinery
22    and equipment, including machinery and equipment purchased
23    for lease, and including implements of husbandry defined in
24    Section 1-130 of the Illinois Vehicle Code, farm machinery

 

 

HB5100- 56 -LRB101 16844 HLH 66243 b

1    and agricultural chemical and fertilizer spreaders, and
2    nurse wagons required to be registered under Section 3-809
3    of the Illinois Vehicle Code, but excluding other motor
4    vehicles required to be registered under the Illinois
5    Vehicle Code. Horticultural polyhouses or hoop houses used
6    for propagating, growing, or overwintering plants shall be
7    considered farm machinery and equipment under this item
8    (2). Agricultural chemical tender tanks and dry boxes shall
9    include units sold separately from a motor vehicle required
10    to be licensed and units sold mounted on a motor vehicle
11    required to be licensed, if the selling price of the tender
12    is separately stated.
13        Farm machinery and equipment shall include precision
14    farming equipment that is installed or purchased to be
15    installed on farm machinery and equipment including, but
16    not limited to, tractors, harvesters, sprayers, planters,
17    seeders, or spreaders. Precision farming equipment
18    includes, but is not limited to, soil testing sensors,
19    computers, monitors, software, global positioning and
20    mapping systems, and other such equipment.
21        Farm machinery and equipment also includes computers,
22    sensors, software, and related equipment used primarily in
23    the computer-assisted operation of production agriculture
24    facilities, equipment, and activities such as, but not
25    limited to, the collection, monitoring, and correlation of
26    animal and crop data for the purpose of formulating animal

 

 

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1    diets and agricultural chemicals. This item (2) is exempt
2    from the provisions of Section 2-70.
3        (3) Until July 1, 2003, distillation machinery and
4    equipment, sold as a unit or kit, assembled or installed by
5    the retailer, certified by the user to be used only for the
6    production of ethyl alcohol that will be used for
7    consumption as motor fuel or as a component of motor fuel
8    for the personal use of the user, and not subject to sale
9    or resale.
10        (4) Until July 1, 2003 and beginning again September 1,
11    2004 through August 30, 2014, graphic arts machinery and
12    equipment, including repair and replacement parts, both
13    new and used, and including that manufactured on special
14    order or purchased for lease, certified by the purchaser to
15    be used primarily for graphic arts production. Equipment
16    includes chemicals or chemicals acting as catalysts but
17    only if the chemicals or chemicals acting as catalysts
18    effect a direct and immediate change upon a graphic arts
19    product. Beginning on July 1, 2017, graphic arts machinery
20    and equipment is included in the manufacturing and
21    assembling machinery and equipment exemption under
22    paragraph (14).
23        (5) A motor vehicle that is used for automobile
24    renting, as defined in the Automobile Renting Occupation
25    and Use Tax Act. This paragraph is exempt from the
26    provisions of Section 2-70.

 

 

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1        (6) Personal property sold by a teacher-sponsored
2    student organization affiliated with an elementary or
3    secondary school located in Illinois.
4        (7) Until July 1, 2003, proceeds of that portion of the
5    selling price of a passenger car the sale of which is
6    subject to the Replacement Vehicle Tax.
7        (8) Personal property sold to an Illinois county fair
8    association for use in conducting, operating, or promoting
9    the county fair.
10        (9) Personal property sold to a not-for-profit arts or
11    cultural organization that establishes, by proof required
12    by the Department by rule, that it has received an
13    exemption under Section 501(c)(3) of the Internal Revenue
14    Code and that is organized and operated primarily for the
15    presentation or support of arts or cultural programming,
16    activities, or services. These organizations include, but
17    are not limited to, music and dramatic arts organizations
18    such as symphony orchestras and theatrical groups, arts and
19    cultural service organizations, local arts councils,
20    visual arts organizations, and media arts organizations.
21    On and after July 1, 2001 (the effective date of Public Act
22    92-35), however, an entity otherwise eligible for this
23    exemption shall not make tax-free purchases unless it has
24    an active identification number issued by the Department.
25        (10) Personal property sold by a corporation, society,
26    association, foundation, institution, or organization,

 

 

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1    other than a limited liability company, that is organized
2    and operated as a not-for-profit service enterprise for the
3    benefit of persons 65 years of age or older if the personal
4    property was not purchased by the enterprise for the
5    purpose of resale by the enterprise.
6        (11) Personal property sold to a governmental body, to
7    a corporation, society, association, foundation, or
8    institution organized and operated exclusively for
9    charitable, religious, or educational purposes, or to a
10    not-for-profit corporation, society, association,
11    foundation, institution, or organization that has no
12    compensated officers or employees and that is organized and
13    operated primarily for the recreation of persons 55 years
14    of age or older. A limited liability company may qualify
15    for the exemption under this paragraph only if the limited
16    liability company is organized and operated exclusively
17    for educational purposes. On and after July 1, 1987,
18    however, no entity otherwise eligible for this exemption
19    shall make tax-free purchases unless it has an active
20    identification number issued by the Department.
21        (12) (Blank).
22        (12-5) On and after July 1, 2003 and through June 30,
23    2004, motor vehicles of the second division with a gross
24    vehicle weight in excess of 8,000 pounds that are subject
25    to the commercial distribution fee imposed under Section
26    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,

 

 

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1    2004 and through June 30, 2005, the use in this State of
2    motor vehicles of the second division: (i) with a gross
3    vehicle weight rating in excess of 8,000 pounds; (ii) that
4    are subject to the commercial distribution fee imposed
5    under Section 3-815.1 of the Illinois Vehicle Code; and
6    (iii) that are primarily used for commercial purposes.
7    Through June 30, 2005, this exemption applies to repair and
8    replacement parts added after the initial purchase of such
9    a motor vehicle if that motor vehicle is used in a manner
10    that would qualify for the rolling stock exemption
11    otherwise provided for in this Act. For purposes of this
12    paragraph, "used for commercial purposes" means the
13    transportation of persons or property in furtherance of any
14    commercial or industrial enterprise whether for-hire or
15    not.
16        (13) Proceeds from sales to owners, lessors, or
17    shippers of tangible personal property that is utilized by
18    interstate carriers for hire for use as rolling stock
19    moving in interstate commerce and equipment operated by a
20    telecommunications provider, licensed as a common carrier
21    by the Federal Communications Commission, which is
22    permanently installed in or affixed to aircraft moving in
23    interstate commerce.
24        (14) Machinery and equipment that will be used by the
25    purchaser, or a lessee of the purchaser, primarily in the
26    process of manufacturing or assembling tangible personal

 

 

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1    property for wholesale or retail sale or lease, whether the
2    sale or lease is made directly by the manufacturer or by
3    some other person, whether the materials used in the
4    process are owned by the manufacturer or some other person,
5    or whether the sale or lease is made apart from or as an
6    incident to the seller's engaging in the service occupation
7    of producing machines, tools, dies, jigs, patterns,
8    gauges, or other similar items of no commercial value on
9    special order for a particular purchaser. The exemption
10    provided by this paragraph (14) does not include machinery
11    and equipment used in (i) the generation of electricity for
12    wholesale or retail sale; (ii) the generation or treatment
13    of natural or artificial gas for wholesale or retail sale
14    that is delivered to customers through pipes, pipelines, or
15    mains; or (iii) the treatment of water for wholesale or
16    retail sale that is delivered to customers through pipes,
17    pipelines, or mains. The provisions of Public Act 98-583
18    are declaratory of existing law as to the meaning and scope
19    of this exemption. Beginning on July 1, 2017, the exemption
20    provided by this paragraph (14) includes, but is not
21    limited to, graphic arts machinery and equipment, as
22    defined in paragraph (4) of this Section.
23        (15) Proceeds of mandatory service charges separately
24    stated on customers' bills for purchase and consumption of
25    food and beverages, to the extent that the proceeds of the
26    service charge are in fact turned over as tips or as a

 

 

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1    substitute for tips to the employees who participate
2    directly in preparing, serving, hosting or cleaning up the
3    food or beverage function with respect to which the service
4    charge is imposed.
5        (16) Tangible personal property sold to a purchaser if
6    the purchaser is exempt from use tax by operation of
7    federal law. This paragraph is exempt from the provisions
8    of Section 2-70.
9        (17) Tangible personal property sold to a common
10    carrier by rail or motor that receives the physical
11    possession of the property in Illinois and that transports
12    the property, or shares with another common carrier in the
13    transportation of the property, out of Illinois on a
14    standard uniform bill of lading showing the seller of the
15    property as the shipper or consignor of the property to a
16    destination outside Illinois, for use outside Illinois.
17        (18) Legal tender, currency, medallions, or gold or
18    silver coinage issued by the State of Illinois, the
19    government of the United States of America, or the
20    government of any foreign country, and bullion.
21        (19) Until July 1, 2003, oil field exploration,
22    drilling, and production equipment, including (i) rigs and
23    parts of rigs, rotary rigs, cable tool rigs, and workover
24    rigs, (ii) pipe and tubular goods, including casing and
25    drill strings, (iii) pumps and pump-jack units, (iv)
26    storage tanks and flow lines, (v) any individual

 

 

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1    replacement part for oil field exploration, drilling, and
2    production equipment, and (vi) machinery and equipment
3    purchased for lease; but excluding motor vehicles required
4    to be registered under the Illinois Vehicle Code.
5        (20) Photoprocessing machinery and equipment,
6    including repair and replacement parts, both new and used,
7    including that manufactured on special order, certified by
8    the purchaser to be used primarily for photoprocessing, and
9    including photoprocessing machinery and equipment
10    purchased for lease.
11        (21) Until July 1, 2023, coal and aggregate
12    exploration, mining, off-highway hauling, processing,
13    maintenance, and reclamation equipment, including
14    replacement parts and equipment, and including equipment
15    purchased for lease, but excluding motor vehicles required
16    to be registered under the Illinois Vehicle Code. The
17    changes made to this Section by Public Act 97-767 apply on
18    and after July 1, 2003, but no claim for credit or refund
19    is allowed on or after August 16, 2013 (the effective date
20    of Public Act 98-456) for such taxes paid during the period
21    beginning July 1, 2003 and ending on August 16, 2013 (the
22    effective date of Public Act 98-456).
23        (22) Until June 30, 2013, fuel and petroleum products
24    sold to or used by an air carrier, certified by the carrier
25    to be used for consumption, shipment, or storage in the
26    conduct of its business as an air common carrier, for a

 

 

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1    flight destined for or returning from a location or
2    locations outside the United States without regard to
3    previous or subsequent domestic stopovers.
4        Beginning July 1, 2013, fuel and petroleum products
5    sold to or used by an air carrier, certified by the carrier
6    to be used for consumption, shipment, or storage in the
7    conduct of its business as an air common carrier, for a
8    flight that (i) is engaged in foreign trade or is engaged
9    in trade between the United States and any of its
10    possessions and (ii) transports at least one individual or
11    package for hire from the city of origination to the city
12    of final destination on the same aircraft, without regard
13    to a change in the flight number of that aircraft.
14        (23) A transaction in which the purchase order is
15    received by a florist who is located outside Illinois, but
16    who has a florist located in Illinois deliver the property
17    to the purchaser or the purchaser's donee in Illinois.
18        (24) Fuel consumed or used in the operation of ships,
19    barges, or vessels that are used primarily in or for the
20    transportation of property or the conveyance of persons for
21    hire on rivers bordering on this State if the fuel is
22    delivered by the seller to the purchaser's barge, ship, or
23    vessel while it is afloat upon that bordering river.
24        (25) Except as provided in item (25-5) of this Section,
25    a motor vehicle sold in this State to a nonresident even
26    though the motor vehicle is delivered to the nonresident in

 

 

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1    this State, if the motor vehicle is not to be titled in
2    this State, and if a drive-away permit is issued to the
3    motor vehicle as provided in Section 3-603 of the Illinois
4    Vehicle Code or if the nonresident purchaser has vehicle
5    registration plates to transfer to the motor vehicle upon
6    returning to his or her home state. The issuance of the
7    drive-away permit or having the out-of-state registration
8    plates to be transferred is prima facie evidence that the
9    motor vehicle will not be titled in this State.
10        (25-5) The exemption under item (25) does not apply if
11    the state in which the motor vehicle will be titled does
12    not allow a reciprocal exemption for a motor vehicle sold
13    and delivered in that state to an Illinois resident but
14    titled in Illinois. The tax collected under this Act on the
15    sale of a motor vehicle in this State to a resident of
16    another state that does not allow a reciprocal exemption
17    shall be imposed at a rate equal to the state's rate of tax
18    on taxable property in the state in which the purchaser is
19    a resident, except that the tax shall not exceed the tax
20    that would otherwise be imposed under this Act. At the time
21    of the sale, the purchaser shall execute a statement,
22    signed under penalty of perjury, of his or her intent to
23    title the vehicle in the state in which the purchaser is a
24    resident within 30 days after the sale and of the fact of
25    the payment to the State of Illinois of tax in an amount
26    equivalent to the state's rate of tax on taxable property

 

 

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1    in his or her state of residence and shall submit the
2    statement to the appropriate tax collection agency in his
3    or her state of residence. In addition, the retailer must
4    retain a signed copy of the statement in his or her
5    records. Nothing in this item shall be construed to require
6    the removal of the vehicle from this state following the
7    filing of an intent to title the vehicle in the purchaser's
8    state of residence if the purchaser titles the vehicle in
9    his or her state of residence within 30 days after the date
10    of sale. The tax collected under this Act in accordance
11    with this item (25-5) shall be proportionately distributed
12    as if the tax were collected at the 6.25% general rate
13    imposed under this Act.
14        (25-7) Beginning on July 1, 2007, no tax is imposed
15    under this Act on the sale of an aircraft, as defined in
16    Section 3 of the Illinois Aeronautics Act, if all of the
17    following conditions are met:
18            (1) the aircraft leaves this State within 15 days
19        after the later of either the issuance of the final
20        billing for the sale of the aircraft, or the authorized
21        approval for return to service, completion of the
22        maintenance record entry, and completion of the test
23        flight and ground test for inspection, as required by
24        14 C.F.R. 91.407;
25            (2) the aircraft is not based or registered in this
26        State after the sale of the aircraft; and

 

 

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1            (3) the seller retains in his or her books and
2        records and provides to the Department a signed and
3        dated certification from the purchaser, on a form
4        prescribed by the Department, certifying that the
5        requirements of this item (25-7) are met. The
6        certificate must also include the name and address of
7        the purchaser, the address of the location where the
8        aircraft is to be titled or registered, the address of
9        the primary physical location of the aircraft, and
10        other information that the Department may reasonably
11        require.
12        For purposes of this item (25-7):
13        "Based in this State" means hangared, stored, or
14    otherwise used, excluding post-sale customizations as
15    defined in this Section, for 10 or more days in each
16    12-month period immediately following the date of the sale
17    of the aircraft.
18        "Registered in this State" means an aircraft
19    registered with the Department of Transportation,
20    Aeronautics Division, or titled or registered with the
21    Federal Aviation Administration to an address located in
22    this State.
23        This paragraph (25-7) is exempt from the provisions of
24    Section 2-70.
25        (26) Semen used for artificial insemination of
26    livestock for direct agricultural production.

 

 

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1        (27) Horses, or interests in horses, registered with
2    and meeting the requirements of any of the Arabian Horse
3    Club Registry of America, Appaloosa Horse Club, American
4    Quarter Horse Association, United States Trotting
5    Association, or Jockey Club, as appropriate, used for
6    purposes of breeding or racing for prizes. This item (27)
7    is exempt from the provisions of Section 2-70, and the
8    exemption provided for under this item (27) applies for all
9    periods beginning May 30, 1995, but no claim for credit or
10    refund is allowed on or after January 1, 2008 (the
11    effective date of Public Act 95-88) for such taxes paid
12    during the period beginning May 30, 2000 and ending on
13    January 1, 2008 (the effective date of Public Act 95-88).
14        (28) Computers and communications equipment utilized
15    for any hospital purpose and equipment used in the
16    diagnosis, analysis, or treatment of hospital patients
17    sold to a lessor who leases the equipment, under a lease of
18    one year or longer executed or in effect at the time of the
19    purchase, to a hospital that has been issued an active tax
20    exemption identification number by the Department under
21    Section 1g of this Act.
22        (29) Personal property sold to a lessor who leases the
23    property, under a lease of one year or longer executed or
24    in effect at the time of the purchase, to a governmental
25    body that has been issued an active tax exemption
26    identification number by the Department under Section 1g of

 

 

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1    this Act.
2        (30) Beginning with taxable years ending on or after
3    December 31, 1995 and ending with taxable years ending on
4    or before December 31, 2004, personal property that is
5    donated for disaster relief to be used in a State or
6    federally declared disaster area in Illinois or bordering
7    Illinois by a manufacturer or retailer that is registered
8    in this State to a corporation, society, association,
9    foundation, or institution that has been issued a sales tax
10    exemption identification number by the Department that
11    assists victims of the disaster who reside within the
12    declared disaster area.
13        (31) Beginning with taxable years ending on or after
14    December 31, 1995 and ending with taxable years ending on
15    or before December 31, 2004, personal property that is used
16    in the performance of infrastructure repairs in this State,
17    including but not limited to municipal roads and streets,
18    access roads, bridges, sidewalks, waste disposal systems,
19    water and sewer line extensions, water distribution and
20    purification facilities, storm water drainage and
21    retention facilities, and sewage treatment facilities,
22    resulting from a State or federally declared disaster in
23    Illinois or bordering Illinois when such repairs are
24    initiated on facilities located in the declared disaster
25    area within 6 months after the disaster.
26        (32) Beginning July 1, 1999, game or game birds sold at

 

 

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1    a "game breeding and hunting preserve area" as that term is
2    used in the Wildlife Code. This paragraph is exempt from
3    the provisions of Section 2-70.
4        (33) A motor vehicle, as that term is defined in
5    Section 1-146 of the Illinois Vehicle Code, that is donated
6    to a corporation, limited liability company, society,
7    association, foundation, or institution that is determined
8    by the Department to be organized and operated exclusively
9    for educational purposes. For purposes of this exemption,
10    "a corporation, limited liability company, society,
11    association, foundation, or institution organized and
12    operated exclusively for educational purposes" means all
13    tax-supported public schools, private schools that offer
14    systematic instruction in useful branches of learning by
15    methods common to public schools and that compare favorably
16    in their scope and intensity with the course of study
17    presented in tax-supported schools, and vocational or
18    technical schools or institutes organized and operated
19    exclusively to provide a course of study of not less than 6
20    weeks duration and designed to prepare individuals to
21    follow a trade or to pursue a manual, technical,
22    mechanical, industrial, business, or commercial
23    occupation.
24        (34) Beginning January 1, 2000, personal property,
25    including food, purchased through fundraising events for
26    the benefit of a public or private elementary or secondary

 

 

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1    school, a group of those schools, or one or more school
2    districts if the events are sponsored by an entity
3    recognized by the school district that consists primarily
4    of volunteers and includes parents and teachers of the
5    school children. This paragraph does not apply to
6    fundraising events (i) for the benefit of private home
7    instruction or (ii) for which the fundraising entity
8    purchases the personal property sold at the events from
9    another individual or entity that sold the property for the
10    purpose of resale by the fundraising entity and that
11    profits from the sale to the fundraising entity. This
12    paragraph is exempt from the provisions of Section 2-70.
13        (35) Beginning January 1, 2000 and through December 31,
14    2001, new or used automatic vending machines that prepare
15    and serve hot food and beverages, including coffee, soup,
16    and other items, and replacement parts for these machines.
17    Beginning January 1, 2002 and through June 30, 2003,
18    machines and parts for machines used in commercial,
19    coin-operated amusement and vending business if a use or
20    occupation tax is paid on the gross receipts derived from
21    the use of the commercial, coin-operated amusement and
22    vending machines. This paragraph is exempt from the
23    provisions of Section 2-70.
24        (35-5) Beginning August 23, 2001 and through June 30,
25    2016, food for human consumption that is to be consumed off
26    the premises where it is sold (other than alcoholic

 

 

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1    beverages, soft drinks, and food that has been prepared for
2    immediate consumption) and prescription and
3    nonprescription medicines, drugs, medical appliances, and
4    insulin, urine testing materials, syringes, and needles
5    used by diabetics, for human use, when purchased for use by
6    a person receiving medical assistance under Article V of
7    the Illinois Public Aid Code who resides in a licensed
8    long-term care facility, as defined in the Nursing Home
9    Care Act, or a licensed facility as defined in the ID/DD
10    Community Care Act, the MC/DD Act, or the Specialized
11    Mental Health Rehabilitation Act of 2013.
12        (36) Beginning August 2, 2001, computers and
13    communications equipment utilized for any hospital purpose
14    and equipment used in the diagnosis, analysis, or treatment
15    of hospital patients sold to a lessor who leases the
16    equipment, under a lease of one year or longer executed or
17    in effect at the time of the purchase, to a hospital that
18    has been issued an active tax exemption identification
19    number by the Department under Section 1g of this Act. This
20    paragraph is exempt from the provisions of Section 2-70.
21        (37) Beginning August 2, 2001, personal property sold
22    to a lessor who leases the property, under a lease of one
23    year or longer executed or in effect at the time of the
24    purchase, to a governmental body that has been issued an
25    active tax exemption identification number by the
26    Department under Section 1g of this Act. This paragraph is

 

 

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1    exempt from the provisions of Section 2-70.
2        (38) Beginning on January 1, 2002 and through June 30,
3    2016, tangible personal property purchased from an
4    Illinois retailer by a taxpayer engaged in centralized
5    purchasing activities in Illinois who will, upon receipt of
6    the property in Illinois, temporarily store the property in
7    Illinois (i) for the purpose of subsequently transporting
8    it outside this State for use or consumption thereafter
9    solely outside this State or (ii) for the purpose of being
10    processed, fabricated, or manufactured into, attached to,
11    or incorporated into other tangible personal property to be
12    transported outside this State and thereafter used or
13    consumed solely outside this State. The Director of Revenue
14    shall, pursuant to rules adopted in accordance with the
15    Illinois Administrative Procedure Act, issue a permit to
16    any taxpayer in good standing with the Department who is
17    eligible for the exemption under this paragraph (38). The
18    permit issued under this paragraph (38) shall authorize the
19    holder, to the extent and in the manner specified in the
20    rules adopted under this Act, to purchase tangible personal
21    property from a retailer exempt from the taxes imposed by
22    this Act. Taxpayers shall maintain all necessary books and
23    records to substantiate the use and consumption of all such
24    tangible personal property outside of the State of
25    Illinois.
26        (39) Beginning January 1, 2008, tangible personal

 

 

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1    property used in the construction or maintenance of a
2    community water supply, as defined under Section 3.145 of
3    the Environmental Protection Act, that is operated by a
4    not-for-profit corporation that holds a valid water supply
5    permit issued under Title IV of the Environmental
6    Protection Act. This paragraph is exempt from the
7    provisions of Section 2-70.
8        (40) Beginning January 1, 2010, materials, parts,
9    equipment, components, and furnishings incorporated into
10    or upon an aircraft as part of the modification,
11    refurbishment, completion, replacement, repair, or
12    maintenance of the aircraft. This exemption includes
13    consumable supplies used in the modification,
14    refurbishment, completion, replacement, repair, and
15    maintenance of aircraft, but excludes any materials,
16    parts, equipment, components, and consumable supplies used
17    in the modification, replacement, repair, and maintenance
18    of aircraft engines or power plants, whether such engines
19    or power plants are installed or uninstalled upon any such
20    aircraft. "Consumable supplies" include, but are not
21    limited to, adhesive, tape, sandpaper, general purpose
22    lubricants, cleaning solution, latex gloves, and
23    protective films. This exemption applies only to the sale
24    of qualifying tangible personal property to persons who
25    modify, refurbish, complete, replace, or maintain an
26    aircraft and who (i) hold an Air Agency Certificate and are

 

 

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1    empowered to operate an approved repair station by the
2    Federal Aviation Administration, (ii) have a Class IV
3    Rating, and (iii) conduct operations in accordance with
4    Part 145 of the Federal Aviation Regulations. The exemption
5    does not include aircraft operated by a commercial air
6    carrier providing scheduled passenger air service pursuant
7    to authority issued under Part 121 or Part 129 of the
8    Federal Aviation Regulations. The changes made to this
9    paragraph (40) by Public Act 98-534 are declarative of
10    existing law.
11        (41) Tangible personal property sold to a
12    public-facilities corporation, as described in Section
13    11-65-10 of the Illinois Municipal Code, for purposes of
14    constructing or furnishing a municipal convention hall,
15    but only if the legal title to the municipal convention
16    hall is transferred to the municipality without any further
17    consideration by or on behalf of the municipality at the
18    time of the completion of the municipal convention hall or
19    upon the retirement or redemption of any bonds or other
20    debt instruments issued by the public-facilities
21    corporation in connection with the development of the
22    municipal convention hall. This exemption includes
23    existing public-facilities corporations as provided in
24    Section 11-65-25 of the Illinois Municipal Code. This
25    paragraph is exempt from the provisions of Section 2-70.
26        (42) Beginning January 1, 2017, menstrual pads,

 

 

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1    tampons, and menstrual cups.
2        (43) Merchandise that is subject to the Rental Purchase
3    Agreement Occupation and Use Tax. The purchaser must
4    certify that the item is purchased to be rented subject to
5    a rental purchase agreement, as defined in the Rental
6    Purchase Agreement Act, and provide proof of registration
7    under the Rental Purchase Agreement Occupation and Use Tax
8    Act. This paragraph is exempt from the provisions of
9    Section 2-70.
10        (44) Qualified tangible personal property used in the
11    construction or operation of a data center that has been
12    granted a certificate of exemption by the Department of
13    Commerce and Economic Opportunity, whether that tangible
14    personal property is purchased by the owner, operator, or
15    tenant of the data center or by a contractor or
16    subcontractor of the owner, operator, or tenant. Data
17    centers that would have qualified for a certificate of
18    exemption prior to January 1, 2020 had this amendatory Act
19    of the 101st General Assembly been in effect, may apply for
20    and obtain an exemption for subsequent purchases of
21    computer equipment or enabling software purchased or
22    leased to upgrade, supplement, or replace computer
23    equipment or enabling software purchased or leased in the
24    original investment that would have qualified.
25        The Department of Commerce and Economic Opportunity
26    shall grant a certificate of exemption under this item (44)

 

 

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1    to qualified data centers as defined by Section 605-1025 of
2    the Department of Commerce and Economic Opportunity Law of
3    the Civil Administrative Code of Illinois.
4        For the purposes of this item (44):
5            "Data center" means a building or a series of
6        buildings rehabilitated or constructed to house
7        working servers in one physical location or multiple
8        sites within the State of Illinois.
9            "Qualified tangible personal property" means:
10        electrical systems and equipment; climate control and
11        chilling equipment and systems; mechanical systems and
12        equipment; monitoring and secure systems; emergency
13        generators; hardware; computers; servers; data storage
14        devices; network connectivity equipment; racks;
15        cabinets; telecommunications cabling infrastructure;
16        raised floor systems; peripheral components or
17        systems; software; mechanical, electrical, or plumbing
18        systems; battery systems; cooling systems and towers;
19        temperature control systems; other cabling; and other
20        data center infrastructure equipment and systems
21        necessary to operate qualified tangible personal
22        property, including fixtures; and component parts of
23        any of the foregoing, including installation,
24        maintenance, repair, refurbishment, and replacement of
25        qualified tangible personal property to generate,
26        transform, transmit, distribute, or manage electricity

 

 

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1        necessary to operate qualified tangible personal
2        property; and all other tangible personal property
3        that is essential to the operations of a computer data
4        center. The term "qualified tangible personal
5        property" also includes building materials physically
6        incorporated in to the qualifying data center. To
7        document the exemption allowed under this Section, the
8        retailer must obtain from the purchaser a copy of the
9        certificate of eligibility issued by the Department of
10        Commerce and Economic Opportunity.
11        This item (44) is exempt from the provisions of Section
12    2-70.
13        (45) Tangible personal property for which a
14    certificate of exemption has been issued under Section
15    2505-805 of the Department of Revenue Law of the Civil
16    Administrative Code of Illinois. This paragraph is exempt
17    from the provisions of Section 2-70.
18(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
19100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
208-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
21eff. 7-12-19.)
 
22    Section 30. The Counties Code is amended by adding Section
235-1186 as follows:
 
24    (55 ILCS 5/5-1186 new)

 

 

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1    Sec. 5-1186. Exemption for materials, equipment, or
2supplies of a bid. Tangible personal property for which a
3certificate of exemption has been issued under Section 2505-805
4of the Department of Revenue Law of the Civil Administrative
5Code of Illinois is exempt from any use or occupation tax
6imposed by a county under this Code.
 
7    Section 35. The Illinois Municipal Code is amended by
8adding Section 8-1-19 as follows:
 
9    (65 ILCS 5/8-1-19 new)
10    Sec. 8-1-19. Exemption for materials, equipment, or
11supplies of a bid. Tangible personal property for which a
12certificate of exemption has been issued under Section 2505-805
13of the Department of Revenue Law of the Civil Administrative
14Code of Illinois is exempt from any use or occupation tax
15imposed by a municipality under this Code.
 
16    Section 40. The Civic Center Code is amended by adding
17Section 245-13 as follows:
 
18    (70 ILCS 200/245-13 new)
19    Sec. 245-13. Exemption for materials, equipment, or
20supplies of a bid. Tangible personal property for which a
21certificate of exemption has been issued under Section 2505-805
22of the Department of Revenue Law of the Civil Administrative

 

 

HB5100- 80 -LRB101 16844 HLH 66243 b

1Code of Illinois is exempt from any use or occupation tax
2imposed under this Article.
 
3    Section 45. The Metropolitan Pier and Exposition Authority
4Act is amended by adding Section 13.4 as follows:
 
5    (70 ILCS 210/13.4 new)
6    Sec. 13.4. Exemption for materials, equipment, or supplies
7of a bid. Tangible personal property for which a certificate of
8exemption has been issued under Section 2505-805 of the
9Department of Revenue Law of the Civil Administrative Code of
10Illinois is exempt from any use or occupation tax imposed under
11this Act.
 
12    Section 50. The Flood Prevention District Act is amended by
13adding Section 27 as follows:
 
14    (70 ILCS 750/27 new)
15    Sec. 27. Exemption for materials, equipment, or supplies of
16a bid. Tangible personal property for which a certificate of
17exemption has been issued under Section 2505-805 of the
18Department of Revenue Law of the Civil Administrative Code of
19Illinois is exempt from any use or occupation tax imposed under
20this Act.
 
21    Section 55. The Metro-East Park and Recreation District Act

 

 

HB5100- 81 -LRB101 16844 HLH 66243 b

1is amended by adding Section 32 as follows:
 
2    (70 ILCS 1605/32 new)
3    Sec. 32. Exemption for materials, equipment, or supplies of
4a bid. Tangible personal property for which a certificate of
5exemption has been issued under Section 2505-805 of the
6Department of Revenue Law of the Civil Administrative Code of
7Illinois is exempt from any use or occupation tax imposed under
8this Act.
 
9    Section 60. The Local Mass Transit District Act is amended
10by adding Section 5.7 as follows:
 
11    (70 ILCS 3610/5.7 new)
12    Sec. 5.7. Exemption for materials, equipment, or supplies
13of a bid. Tangible personal property for which a certificate of
14exemption has been issued under Section 2505-805 of the
15Department of Revenue Law of the Civil Administrative Code of
16Illinois is exempt from any use or occupation tax imposed under
17this Act.
 
18    Section 65. The Regional Transportation Authority Act is
19amended by adding Section 4.17 as follows:
 
20    (70 ILCS 3615/4.17 new)
21    Sec. 4.17. Exemption for materials, equipment, or supplies

 

 

HB5100- 82 -LRB101 16844 HLH 66243 b

1of a bid. Tangible personal property for which a certificate of
2exemption has been issued under Section 2505-805 of the
3Department of Revenue Law of the Civil Administrative Code of
4Illinois is exempt from any use or occupation tax imposed under
5this Act.
 
6    Section 70. The Water Commission Act of 1985 is amended by
7adding Section 4.5 as follows:
 
8    (70 ILCS 3720/4.5 new)
9    Sec. 4.5. Exemption for materials, equipment, or supplies
10of a bid. Tangible personal property for which a certificate of
11exemption has been issued under Section 2505-805 of the
12Department of Revenue Law of the Civil Administrative Code of
13Illinois is exempt from any use or occupation tax imposed under
14this Act.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.

 

 

HB5100- 83 -LRB101 16844 HLH 66243 b

1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 2505/2505-805 new
4    35 ILCS 105/3-5
5    35 ILCS 110/3-5
6    35 ILCS 115/3-5
7    35 ILCS 120/2-5
8    55 ILCS 5/5-1186 new
9    65 ILCS 5/8-1-19 new
10    70 ILCS 200/245-13 new
11    70 ILCS 210/13.4 new
12    70 ILCS 750/27 new
13    70 ILCS 1605/32 new
14    70 ILCS 3610/5.7 new
15    70 ILCS 3615/4.17 new
16    70 ILCS 3720/4.5 new