103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1647

 

Introduced 2/1/2023, by Rep. Natalie A. Manley

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2024, the exemption for farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture. Effective immediately.


LRB103 00143 HLH 45148 b

 

 

A BILL FOR

 

HB1647LRB103 00143 HLH 45148 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active
24exemption identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon
11a graphic arts product. Beginning on July 1, 2017, graphic
12arts machinery and equipment is included in the manufacturing
13and assembling machinery and equipment exemption under
14paragraph (18).
15    (7) Farm chemicals.
16    (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26    (11) Farm machinery and equipment, both new and used,

 

 

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

 

 

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1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals.
8    Beginning on January 1, 2024, farm machinery and equipment
9also includes electrical power generation equipment used
10primarily for production agriculture.
11    This item (11) is exempt from the provisions of Section
123-90.
13    (12) Until June 30, 2013, fuel and petroleum products sold
14to or used by an air common carrier, certified by the carrier
15to be used for consumption, shipment, or storage in the
16conduct of its business as an air common carrier, for a flight
17destined for or returning from a location or locations outside
18the United States without regard to previous or subsequent
19domestic stopovers.
20    Beginning July 1, 2013, fuel and petroleum products sold
21to or used by an air carrier, certified by the carrier to be
22used for consumption, shipment, or storage in the conduct of
23its business as an air common carrier, for a flight that (i) is
24engaged in foreign trade or is engaged in trade between the
25United States and any of its possessions and (ii) transports
26at least one individual or package for hire from the city of

 

 

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

 

 

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1    (16) Until July 1, 2028, 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    (17) Until July 1, 2003, distillation machinery and
13equipment, sold as a unit or kit, assembled or installed by the
14retailer, certified by the user to be used only for the
15production of ethyl alcohol that will be used for consumption
16as motor fuel or as a component of motor fuel for the personal
17use of the user, and not subject to sale or resale.
18    (18) Manufacturing and assembling machinery and equipment
19used primarily in the process of manufacturing or assembling
20tangible personal property for wholesale or retail sale or
21lease, whether that sale or lease is made directly by the
22manufacturer or by some other person, whether the materials
23used in the process are owned by the manufacturer or some other
24person, or whether that sale or lease is made apart from or as
25an incident to the seller's engaging in the service occupation
26of producing machines, tools, dies, jigs, patterns, gauges, or

 

 

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1other similar items of no commercial value on special order
2for a particular purchaser. The exemption provided by this
3paragraph (18) includes production related tangible personal
4property, as defined in Section 3-50, purchased on or after
5July 1, 2019. The exemption provided by this paragraph (18)
6does not include machinery and equipment used in (i) the
7generation of electricity for wholesale or retail sale; (ii)
8the generation or treatment of natural or artificial gas for
9wholesale or retail sale that is delivered to customers
10through pipes, pipelines, or mains; or (iii) the treatment of
11water for wholesale or retail sale that is delivered to
12customers through pipes, pipelines, or mains. The provisions
13of Public Act 98-583 are declaratory of existing law as to the
14meaning and scope of this exemption. Beginning on July 1,
152017, the exemption provided by this paragraph (18) includes,
16but is not limited to, graphic arts machinery and equipment,
17as defined in paragraph (6) of this Section.
18    (19) Personal property delivered to a purchaser or
19purchaser's donee inside Illinois when the purchase order for
20that personal property was received by a florist located
21outside Illinois who has a florist located inside Illinois
22deliver the personal property.
23    (20) Semen used for artificial insemination of livestock
24for direct agricultural production.
25    (21) Horses, or interests in horses, registered with and
26meeting the requirements of any of the Arabian Horse Club

 

 

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1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (21) is exempt from the
5provisions of Section 3-90, and the exemption provided for
6under this item (21) applies for all periods beginning May 30,
71995, but no claim for credit or refund is allowed on or after
8January 1, 2008 for such taxes paid during the period
9beginning May 30, 2000 and ending on January 1, 2008.
10    (22) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients purchased by a
13lessor who leases the equipment, under a lease of one year or
14longer executed or in effect at the time the lessor would
15otherwise be subject to the tax imposed by this Act, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of
18the Retailers' Occupation Tax Act. If the equipment is leased
19in a manner that does not qualify for this exemption or is used
20in any other non-exempt manner, the lessor shall be liable for
21the tax imposed under this Act or the Service Use Tax Act, as
22the case may be, based on the fair market value of the property
23at the time the non-qualifying use occurs. No lessor shall
24collect or attempt to collect an amount (however designated)
25that purports to reimburse that lessor for the tax imposed by
26this Act or the Service Use Tax Act, as the case may be, if the

 

 

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

 

 

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

 

 

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1used in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 3-90.
3    (27) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the
7Department to be organized and operated exclusively for
8educational purposes. For purposes of this exemption, "a
9corporation, limited liability company, society, association,
10foundation, or institution organized and operated exclusively
11for educational purposes" means all tax-supported public
12schools, private schools that offer systematic instruction in
13useful branches of learning by methods common to public
14schools and that compare favorably in their scope and
15intensity with the course of study presented in tax-supported
16schools, and vocational or technical schools or institutes
17organized and operated exclusively to provide a course of
18study of not less than 6 weeks duration and designed to prepare
19individuals to follow a trade or to pursue a manual,
20technical, mechanical, industrial, business, or commercial
21occupation.
22    (28) Beginning January 1, 2000, personal property,
23including food, purchased through fundraising events for the
24benefit of a public or private elementary or secondary school,
25a group of those schools, or one or more school districts if
26the events are sponsored by an entity recognized by the school

 

 

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1district that consists primarily of volunteers and includes
2parents and teachers of the school children. This paragraph
3does not apply to fundraising events (i) for the benefit of
4private home instruction or (ii) for which the fundraising
5entity purchases the personal property sold at the events from
6another individual or entity that sold the property for the
7purpose of resale by the fundraising entity and that profits
8from the sale to the fundraising entity. This paragraph is
9exempt from the provisions of Section 3-90.
10    (29) Beginning January 1, 2000 and through December 31,
112001, new or used automatic vending machines that prepare and
12serve hot food and beverages, including coffee, soup, and
13other items, and replacement parts for these machines.
14Beginning January 1, 2002 and through June 30, 2003, machines
15and parts for machines used in commercial, coin-operated
16amusement and vending business if a use or occupation tax is
17paid on the gross receipts derived from the use of the
18commercial, coin-operated amusement and vending machines. This
19paragraph is exempt from the provisions of Section 3-90.
20    (30) Beginning January 1, 2001 and through June 30, 2016,
21food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages,
23soft drinks, and food that has been prepared for immediate
24consumption) and prescription and nonprescription medicines,
25drugs, medical appliances, and insulin, urine testing
26materials, syringes, and needles used by diabetics, for human

 

 

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

 

 

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

 

 

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1Department. This paragraph is exempt from the provisions of
2Section 3-90.
3    (33) On and after July 1, 2003 and through June 30, 2004,
4the use in this State of motor vehicles of the second division
5with a gross vehicle weight in excess of 8,000 pounds and that
6are subject to the commercial distribution fee imposed under
7Section 3-815.1 of the Illinois Vehicle Code. Beginning on
8July 1, 2004 and through June 30, 2005, the use in this State
9of motor vehicles of the second division: (i) with a gross
10vehicle weight rating in excess of 8,000 pounds; (ii) that are
11subject to the commercial distribution fee imposed under
12Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
13are primarily used for commercial purposes. Through June 30,
142005, this exemption applies to repair and replacement parts
15added after the initial purchase of such a motor vehicle if
16that motor vehicle is used in a manner that would qualify for
17the rolling stock exemption otherwise provided for in this
18Act. For purposes of this paragraph, the term "used for
19commercial purposes" means the transportation of persons or
20property in furtherance of any commercial or industrial
21enterprise, whether for-hire or not.
22    (34) Beginning January 1, 2008, tangible personal property
23used in the construction or maintenance of a community water
24supply, as defined under Section 3.145 of the Environmental
25Protection Act, that is operated by a not-for-profit
26corporation that holds a valid water supply permit issued

 

 

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1under Title IV of the Environmental Protection Act. This
2paragraph is exempt from the provisions of Section 3-90.
3    (35) Beginning January 1, 2010 and continuing through
4December 31, 2024, materials, parts, equipment, components,
5and furnishings incorporated into or upon an aircraft as part
6of the modification, refurbishment, completion, replacement,
7repair, or maintenance of the aircraft. This exemption
8includes consumable supplies used in the modification,
9refurbishment, completion, replacement, repair, and
10maintenance of aircraft, but excludes any materials, parts,
11equipment, components, and consumable supplies used in the
12modification, replacement, repair, and maintenance of aircraft
13engines or power plants, whether such engines or power plants
14are installed or uninstalled upon any such aircraft.
15"Consumable supplies" include, but are not limited to,
16adhesive, tape, sandpaper, general purpose lubricants,
17cleaning solution, latex gloves, and protective films. This
18exemption applies only to the use of qualifying tangible
19personal property by persons who modify, refurbish, complete,
20repair, replace, or maintain aircraft and who (i) hold an Air
21Agency Certificate and are empowered to operate an approved
22repair station by the Federal Aviation Administration, (ii)
23have a Class IV Rating, and (iii) conduct operations in
24accordance with Part 145 of the Federal Aviation Regulations.
25The exemption does not include aircraft operated by a
26commercial air carrier providing scheduled passenger air

 

 

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1service pursuant to authority issued under Part 121 or Part
2129 of the Federal Aviation Regulations. The changes made to
3this paragraph (35) by Public Act 98-534 are declarative of
4existing law. It is the intent of the General Assembly that the
5exemption under this paragraph (35) applies continuously from
6January 1, 2010 through December 31, 2024; however, no claim
7for credit or refund is allowed for taxes paid as a result of
8the disallowance of this exemption on or after January 1, 2015
9and prior to February 5, 2020 (the effective date of Public Act
10101-629) this amendatory Act of the 101st General Assembly.
11    (36) Tangible personal property purchased by a
12public-facilities corporation, as described in Section
1311-65-10 of the Illinois Municipal Code, for purposes of
14constructing or furnishing a municipal convention hall, but
15only if the legal title to the municipal convention hall is
16transferred to the municipality without any further
17consideration by or on behalf of the municipality at the time
18of the completion of the municipal convention hall or upon the
19retirement or redemption of any bonds or other debt
20instruments issued by the public-facilities corporation in
21connection with the development of the municipal convention
22hall. This exemption includes existing public-facilities
23corporations as provided in Section 11-65-25 of the Illinois
24Municipal Code. This paragraph is exempt from the provisions
25of Section 3-90.
26    (37) Beginning January 1, 2017 and through December 31,

 

 

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12026, menstrual pads, tampons, and menstrual cups.
2    (38) Merchandise that is subject to the Rental Purchase
3Agreement Occupation and Use Tax. The purchaser must certify
4that the item is purchased to be rented subject to a rental
5purchase agreement, as defined in the Rental Purchase
6Agreement Act, and provide proof of registration under the
7Rental Purchase Agreement Occupation and Use Tax Act. This
8paragraph is exempt from the provisions of Section 3-90.
9    (39) Tangible personal property purchased by a purchaser
10who is exempt from the tax imposed by this Act by operation of
11federal law. This paragraph is exempt from the provisions of
12Section 3-90.
13    (40) Qualified tangible personal property used in the
14construction or operation of a data center that has been
15granted a certificate of exemption by the Department of
16Commerce and Economic Opportunity, whether that tangible
17personal property is purchased by the owner, operator, or
18tenant of the data center or by a contractor or subcontractor
19of the owner, operator, or tenant. Data centers that would
20have qualified for a certificate of exemption prior to January
211, 2020 had Public Act 101-31 been in effect may apply for and
22obtain an exemption for subsequent purchases of computer
23equipment or enabling software purchased or leased to upgrade,
24supplement, or replace computer equipment or enabling software
25purchased or leased in the original investment that would have
26qualified.

 

 

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1    The Department of Commerce and Economic Opportunity shall
2grant a certificate of exemption under this item (40) to
3qualified data centers as defined by Section 605-1025 of the
4Department of Commerce and Economic Opportunity Law of the
5Civil Administrative Code of Illinois.
6    For the purposes of this item (40):
7        "Data center" means a building or a series of
8    buildings rehabilitated or constructed to house working
9    servers in one physical location or multiple sites within
10    the State of Illinois.
11        "Qualified tangible personal property" means:
12    electrical systems and equipment; climate control and
13    chilling equipment and systems; mechanical systems and
14    equipment; monitoring and secure systems; emergency
15    generators; hardware; computers; servers; data storage
16    devices; network connectivity equipment; racks; cabinets;
17    telecommunications cabling infrastructure; raised floor
18    systems; peripheral components or systems; software;
19    mechanical, electrical, or plumbing systems; battery
20    systems; cooling systems and towers; temperature control
21    systems; other cabling; and other data center
22    infrastructure equipment and systems necessary to operate
23    qualified tangible personal property, including fixtures;
24    and component parts of any of the foregoing, including
25    installation, maintenance, repair, refurbishment, and
26    replacement of qualified tangible personal property to

 

 

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1    generate, transform, transmit, distribute, or manage
2    electricity necessary to operate qualified tangible
3    personal property; and all other tangible personal
4    property that is essential to the operations of a computer
5    data center. The term "qualified tangible personal
6    property" also includes building materials physically
7    incorporated in to the qualifying data center. To document
8    the exemption allowed under this Section, the retailer
9    must obtain from the purchaser a copy of the certificate
10    of eligibility issued by the Department of Commerce and
11    Economic Opportunity.
12    This item (40) is exempt from the provisions of Section
133-90.
14    (41) Beginning July 1, 2022, breast pumps, breast pump
15collection and storage supplies, and breast pump kits. This
16item (41) is exempt from the provisions of Section 3-90. As
17used in this item (41):
18        "Breast pump" means an electrically controlled or
19    manually controlled pump device designed or marketed to be
20    used to express milk from a human breast during lactation,
21    including the pump device and any battery, AC adapter, or
22    other power supply unit that is used to power the pump
23    device and is packaged and sold with the pump device at the
24    time of sale.
25        "Breast pump collection and storage supplies" means
26    items of tangible personal property designed or marketed

 

 

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1    to be used in conjunction with a breast pump to collect
2    milk expressed from a human breast and to store collected
3    milk until it is ready for consumption.
4        "Breast pump collection and storage supplies"
5    includes, but is not limited to: breast shields and breast
6    shield connectors; breast pump tubes and tubing adapters;
7    breast pump valves and membranes; backflow protectors and
8    backflow protector adaptors; bottles and bottle caps
9    specific to the operation of the breast pump; and breast
10    milk storage bags.
11        "Breast pump collection and storage supplies" does not
12    include: (1) bottles and bottle caps not specific to the
13    operation of the breast pump; (2) breast pump travel bags
14    and other similar carrying accessories, including ice
15    packs, labels, and other similar products; (3) breast pump
16    cleaning supplies; (4) nursing bras, bra pads, breast
17    shells, and other similar products; and (5) creams,
18    ointments, and other similar products that relieve
19    breastfeeding-related symptoms or conditions of the
20    breasts or nipples, unless sold as part of a breast pump
21    kit that is pre-packaged by the breast pump manufacturer
22    or distributor.
23        "Breast pump kit" means a kit that: (1) contains no
24    more than a breast pump, breast pump collection and
25    storage supplies, a rechargeable battery for operating the
26    breast pump, a breastmilk cooler, bottle stands, ice

 

 

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1    packs, and a breast pump carrying case; and (2) is
2    pre-packaged as a breast pump kit by the breast pump
3    manufacturer or distributor.
4    (42) (41) Tangible personal property sold by or on behalf
5of the State Treasurer pursuant to the Revised Uniform
6Unclaimed Property Act. This item (42) (41) is exempt from the
7provisions of Section 3-90.
8(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
9101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
106-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
11102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
12eff. 5-27-22; revised 8-1-22.)
 
13    Section 10. The Service Use Tax Act is amended by changing
14Section 3-5 as follows:
 
15    (35 ILCS 110/3-5)
16    Sec. 3-5. Exemptions. Use of the following tangible
17personal property is exempt from the tax imposed by this Act:
18    (1) Personal property purchased from a corporation,
19society, association, foundation, institution, or
20organization, other than a limited liability company, that is
21organized and operated as a not-for-profit service enterprise
22for the benefit of persons 65 years of age or older if the
23personal property was not purchased by the enterprise for the
24purpose of resale by the enterprise.

 

 

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1    (2) Personal property purchased by a non-profit Illinois
2county fair association for use in conducting, operating, or
3promoting the county fair.
4    (3) Personal property purchased by a not-for-profit arts
5or cultural organization that establishes, by proof required
6by the Department by rule, that it has received an exemption
7under Section 501(c)(3) of the Internal Revenue Code and that
8is organized and operated primarily for the presentation or
9support of arts or cultural programming, activities, or
10services. These organizations include, but are not limited to,
11music and dramatic arts organizations such as symphony
12orchestras and theatrical groups, arts and cultural service
13organizations, local arts councils, visual arts organizations,
14and media arts organizations. On and after July 1, 2001 (the
15effective date of Public Act 92-35), however, an entity
16otherwise eligible for this exemption shall not make tax-free
17purchases unless it has an active identification number issued
18by the Department.
19    (4) Legal tender, currency, medallions, or gold or silver
20coinage issued by the State of Illinois, the government of the
21United States of America, or the government of any foreign
22country, and bullion.
23    (5) Until July 1, 2003 and beginning again on September 1,
242004 through August 30, 2014, graphic arts machinery and
25equipment, including repair and replacement parts, both new
26and used, and including that manufactured on special order or

 

 

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1purchased for lease, certified by the purchaser to be used
2primarily for graphic arts production. Equipment includes
3chemicals or chemicals acting as catalysts but only if the
4chemicals or chemicals acting as catalysts effect a direct and
5immediate change upon a graphic arts product. Beginning on
6July 1, 2017, graphic arts machinery and equipment is included
7in the manufacturing and assembling machinery and equipment
8exemption under Section 2 of this Act.
9    (6) Personal property purchased from a teacher-sponsored
10student organization affiliated with an elementary or
11secondary school located in Illinois.
12    (7) Farm machinery and equipment, both new and used,
13including that manufactured on special order, certified by the
14purchaser to be used primarily for production agriculture or
15State or federal agricultural programs, including individual
16replacement parts for the machinery and equipment, including
17machinery and equipment purchased for lease, and including
18implements of husbandry defined in Section 1-130 of the
19Illinois Vehicle Code, farm machinery and agricultural
20chemical and fertilizer spreaders, and nurse wagons required
21to be registered under Section 3-809 of the Illinois Vehicle
22Code, but excluding other motor vehicles required to be
23registered under the Illinois Vehicle Code. Horticultural
24polyhouses or hoop houses used for propagating, growing, or
25overwintering plants shall be considered farm machinery and
26equipment under this item (7). Agricultural chemical tender

 

 

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1tanks and dry boxes shall include units sold separately from a
2motor vehicle required to be licensed and units sold mounted
3on a motor vehicle required to be licensed if the selling price
4of the tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals.
20    Beginning on January 1, 2024, farm machinery and equipment
21also includes electrical power generation equipment used
22primarily for production agriculture.
23    This item (7) is exempt from the provisions of Section
243-75.
25    (8) Until June 30, 2013, fuel and petroleum products sold
26to or used by an air common carrier, certified by the carrier

 

 

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

 

 

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1rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2pipe and tubular goods, including casing and drill strings,
3(iii) pumps and pump-jack units, (iv) storage tanks and flow
4lines, (v) any individual replacement part for oil field
5exploration, drilling, and production equipment, and (vi)
6machinery and equipment purchased for lease; but excluding
7motor vehicles required to be registered under the Illinois
8Vehicle Code.
9    (11) Proceeds from the sale of photoprocessing machinery
10and equipment, including repair and replacement parts, both
11new and used, including that manufactured on special order,
12certified by the purchaser to be used primarily for
13photoprocessing, and including photoprocessing machinery and
14equipment purchased for lease.
15    (12) Until July 1, 2028, coal and aggregate exploration,
16mining, off-highway hauling, processing, maintenance, and
17reclamation equipment, including replacement parts and
18equipment, and including equipment purchased for lease, but
19excluding motor vehicles required to be registered under the
20Illinois Vehicle Code. The changes made to this Section by
21Public Act 97-767 apply on and after July 1, 2003, but no claim
22for credit or refund is allowed on or after August 16, 2013
23(the effective date of Public Act 98-456) for such taxes paid
24during the period beginning July 1, 2003 and ending on August
2516, 2013 (the effective date of Public Act 98-456).
26    (13) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (14) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (14) is exempt from the
8provisions of Section 3-75, and the exemption provided for
9under this item (14) applies for all periods beginning May 30,
101995, but no claim for credit or refund is allowed on or after
11January 1, 2008 (the effective date of Public Act 95-88) for
12such taxes paid during the period beginning May 30, 2000 and
13ending on January 1, 2008 (the effective date of Public Act
1495-88).
15    (15) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients purchased by a
18lessor who leases the equipment, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23the Retailers' Occupation Tax Act. If the equipment is leased
24in a manner that does not qualify for this exemption or is used
25in any other non-exempt manner, the lessor shall be liable for
26the tax imposed under this Act or the Use Tax Act, as the case

 

 

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

 

 

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

 

 

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1in the declared disaster area within 6 months after the
2disaster.
3    (19) Beginning July 1, 1999, game or game birds purchased
4at a "game breeding and hunting preserve area" as that term is
5used in the Wildlife Code. This paragraph is exempt from the
6provisions of Section 3-75.
7    (20) A motor vehicle, as that term is defined in Section
81-146 of the Illinois Vehicle Code, that is donated to a
9corporation, limited liability company, society, association,
10foundation, or institution that is determined by the
11Department to be organized and operated exclusively for
12educational purposes. For purposes of this exemption, "a
13corporation, limited liability company, society, association,
14foundation, or institution organized and operated exclusively
15for educational purposes" means all tax-supported public
16schools, private schools that offer systematic instruction in
17useful branches of learning by methods common to public
18schools and that compare favorably in their scope and
19intensity with the course of study presented in tax-supported
20schools, and vocational or technical schools or institutes
21organized and operated exclusively to provide a course of
22study of not less than 6 weeks duration and designed to prepare
23individuals to follow a trade or to pursue a manual,
24technical, mechanical, industrial, business, or commercial
25occupation.
26    (21) Beginning January 1, 2000, personal property,

 

 

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1including food, purchased through fundraising events for the
2benefit of a public or private elementary or secondary school,
3a group of those schools, or one or more school districts if
4the events are sponsored by an entity recognized by the school
5district that consists primarily of volunteers and includes
6parents and teachers of the school children. This paragraph
7does not apply to fundraising events (i) for the benefit of
8private home instruction or (ii) for which the fundraising
9entity purchases the personal property sold at the events from
10another individual or entity that sold the property for the
11purpose of resale by the fundraising entity and that profits
12from the sale to the fundraising entity. This paragraph is
13exempt from the provisions of Section 3-75.
14    (22) Beginning January 1, 2000 and through December 31,
152001, new or used automatic vending machines that prepare and
16serve hot food and beverages, including coffee, soup, and
17other items, and replacement parts for these machines.
18Beginning January 1, 2002 and through June 30, 2003, machines
19and parts for machines used in commercial, coin-operated
20amusement and vending business if a use or occupation tax is
21paid on the gross receipts derived from the use of the
22commercial, coin-operated amusement and vending machines. This
23paragraph is exempt from the provisions of Section 3-75.
24    (23) Beginning August 23, 2001 and through June 30, 2016,
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages,

 

 

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

 

 

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

 

 

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1from the lessee, the lessee shall have a legal right to claim a
2refund of that amount from the lessor. If, however, that
3amount is not refunded to the lessee for any reason, the lessor
4is liable to pay that amount to the Department. This paragraph
5is exempt from the provisions of Section 3-75.
6    (26) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued
11under Title IV of the Environmental Protection Act. This
12paragraph is exempt from the provisions of Section 3-75.
13    (27) Beginning January 1, 2010 and continuing through
14December 31, 2024, materials, parts, equipment, components,
15and furnishings incorporated into or upon an aircraft as part
16of the modification, refurbishment, completion, replacement,
17repair, or maintenance of the aircraft. This exemption
18includes consumable supplies used in the modification,
19refurbishment, completion, replacement, repair, and
20maintenance of aircraft, but excludes any materials, parts,
21equipment, components, and consumable supplies used in the
22modification, replacement, repair, and maintenance of aircraft
23engines or power plants, whether such engines or power plants
24are installed or uninstalled upon any such aircraft.
25"Consumable supplies" include, but are not limited to,
26adhesive, tape, sandpaper, general purpose lubricants,

 

 

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1cleaning solution, latex gloves, and protective films. This
2exemption applies only to the use of qualifying tangible
3personal property transferred incident to the modification,
4refurbishment, completion, replacement, repair, or maintenance
5of aircraft by persons who (i) hold an Air Agency Certificate
6and are empowered to operate an approved repair station by the
7Federal Aviation Administration, (ii) have a Class IV Rating,
8and (iii) conduct operations in accordance with Part 145 of
9the Federal Aviation Regulations. The exemption does not
10include aircraft operated by a commercial air carrier
11providing scheduled passenger air service pursuant to
12authority issued under Part 121 or Part 129 of the Federal
13Aviation Regulations. The changes made to this paragraph (27)
14by Public Act 98-534 are declarative of existing law. It is the
15intent of the General Assembly that the exemption under this
16paragraph (27) applies continuously from January 1, 2010
17through December 31, 2024; however, no claim for credit or
18refund is allowed for taxes paid as a result of the
19disallowance of this exemption on or after January 1, 2015 and
20prior to February 5, 2020 (the effective date of Public Act
21101-629) this amendatory Act of the 101st General Assembly.
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

 

 

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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
5instruments issued by the public-facilities corporation in
6connection with the development of the municipal convention
7hall. This exemption includes existing public-facilities
8corporations as provided in Section 11-65-25 of the Illinois
9Municipal Code. This paragraph is exempt from the provisions
10of Section 3-75.
11    (29) Beginning January 1, 2017 and through December 31,
122026, menstrual pads, tampons, and menstrual cups.
13    (30) Tangible personal property transferred to a purchaser
14who is exempt from the tax imposed by this Act by operation of
15federal law. This paragraph is exempt from the provisions of
16Section 3-75.
17    (31) Qualified tangible personal property used in the
18construction or operation of a data center that has been
19granted a certificate of exemption by the Department of
20Commerce and Economic Opportunity, whether that tangible
21personal property is purchased by the owner, operator, or
22tenant of the data center or by a contractor or subcontractor
23of the owner, operator, or tenant. Data centers that would
24have qualified for a certificate of exemption prior to January
251, 2020 had Public Act 101-31 this amendatory Act of the 101st
26General Assembly been in effect, may apply for and obtain an

 

 

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

 

 

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1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a computer
10    data center. The term "qualified tangible personal
11    property" also includes building materials physically
12    incorporated in to the qualifying data center. To document
13    the exemption allowed under this Section, the retailer
14    must obtain from the purchaser a copy of the certificate
15    of eligibility issued by the Department of Commerce and
16    Economic Opportunity.
17    This item (31) is exempt from the provisions of Section
183-75.
19    (32) Beginning July 1, 2022, breast pumps, breast pump
20collection and storage supplies, and breast pump kits. This
21item (32) is exempt from the provisions of Section 3-75. As
22used in this item (32):
23        "Breast pump" means an electrically controlled or
24    manually controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

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

 

 

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1    or distributor.
2        "Breast pump kit" means a kit that: (1) contains no
3    more than a breast pump, breast pump collection and
4    storage supplies, a rechargeable battery for operating the
5    breast pump, a breastmilk cooler, bottle stands, ice
6    packs, and a breast pump carrying case; and (2) is
7    pre-packaged as a breast pump kit by the breast pump
8    manufacturer or distributor.
9    (33) (32) Tangible personal property sold by or on behalf
10of the State Treasurer pursuant to the Revised Uniform
11Unclaimed Property Act. This item (33) (32) is exempt from the
12provisions of Section 3-75.
13(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
14101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1570, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1675-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
17    Section 15. The Service Occupation Tax Act is amended by
18changing Section 3-5 as follows:
 
19    (35 ILCS 115/3-5)
20    Sec. 3-5. Exemptions. The following tangible personal
21property is exempt from the tax imposed by this Act:
22    (1) Personal property sold by a corporation, society,
23association, foundation, institution, or organization, other
24than a limited liability company, that is organized and

 

 

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

 

 

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1    (5) Until July 1, 2003 and beginning again on September 1,
22004 through August 30, 2014, graphic arts machinery and
3equipment, including repair and replacement parts, both new
4and used, and including that manufactured on special order or
5purchased for lease, certified by the purchaser to be used
6primarily for graphic arts production. Equipment includes
7chemicals or chemicals acting as catalysts but only if the
8chemicals or chemicals acting as catalysts effect a direct and
9immediate change upon a graphic arts product. Beginning on
10July 1, 2017, graphic arts machinery and equipment is included
11in the manufacturing and assembling machinery and equipment
12exemption under Section 2 of this Act.
13    (6) Personal property sold by a teacher-sponsored student
14organization affiliated with an elementary or secondary school
15located in Illinois.
16    (7) Farm machinery and equipment, both new and used,
17including that manufactured on special order, certified by the
18purchaser to be used primarily for production agriculture or
19State or federal agricultural programs, including individual
20replacement parts for the machinery and equipment, including
21machinery and equipment purchased for lease, and including
22implements of husbandry defined in Section 1-130 of the
23Illinois Vehicle Code, farm machinery and agricultural
24chemical and fertilizer spreaders, and nurse wagons required
25to be registered under Section 3-809 of the Illinois Vehicle
26Code, but excluding other motor vehicles required to be

 

 

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1registered under the Illinois Vehicle Code. Horticultural
2polyhouses or hoop houses used for propagating, growing, or
3overwintering plants shall be considered farm machinery and
4equipment under this item (7). Agricultural chemical tender
5tanks and dry boxes shall include units sold separately from a
6motor vehicle required to be licensed and units sold mounted
7on a motor vehicle required to be licensed if the selling price
8of the tender is separately stated.
9    Farm machinery and equipment shall include precision
10farming equipment that is installed or purchased to be
11installed on farm machinery and equipment including, but not
12limited to, tractors, harvesters, sprayers, planters, seeders,
13or spreaders. Precision farming equipment includes, but is not
14limited to, soil testing sensors, computers, monitors,
15software, global positioning and mapping systems, and other
16such equipment.
17    Farm machinery and equipment also includes computers,
18sensors, software, and related equipment used primarily in the
19computer-assisted operation of production agriculture
20facilities, equipment, and activities such as, but not limited
21to, the collection, monitoring, and correlation of animal and
22crop data for the purpose of formulating animal diets and
23agricultural chemicals.
24    Beginning on January 1, 2024, farm machinery and equipment
25also includes electrical power generation equipment used
26primarily for production agriculture.

 

 

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1    This item (7) is exempt from the provisions of Section
23-55.
3    (8) Until June 30, 2013, fuel and petroleum products sold
4to or used by an air common carrier, certified by the carrier
5to be used for consumption, shipment, or storage in the
6conduct of its business as an air common carrier, for a flight
7destined for or returning from a location or locations outside
8the United States without regard to previous or subsequent
9domestic stopovers.
10    Beginning July 1, 2013, fuel and petroleum products sold
11to or used by an air carrier, certified by the carrier to be
12used for consumption, shipment, or storage in the conduct of
13its business as an air common carrier, for a flight that (i) is
14engaged in foreign trade or is engaged in trade between the
15United States and any of its possessions and (ii) transports
16at least one individual or package for hire from the city of
17origination to the city of final destination on the same
18aircraft, without regard to a change in the flight number of
19that aircraft.
20    (9) Proceeds of mandatory service charges separately
21stated on customers' bills for the purchase and consumption of
22food and beverages, to the extent that the proceeds of the
23service charge are in fact turned over as tips or as a
24substitute for tips to the employees who participate directly
25in preparing, serving, hosting or cleaning up the food or
26beverage function with respect to which the service charge is

 

 

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1imposed.
2    (10) Until July 1, 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of
4rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
5pipe and tubular goods, including casing and drill strings,
6(iii) pumps and pump-jack units, (iv) storage tanks and flow
7lines, (v) any individual replacement part for oil field
8exploration, drilling, and production equipment, and (vi)
9machinery and equipment purchased for lease; but excluding
10motor vehicles required to be registered under the Illinois
11Vehicle Code.
12    (11) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including
14that manufactured on special order, certified by the purchaser
15to be used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (12) Until July 1, 2028, coal and aggregate exploration,
18mining, off-highway hauling, processing, maintenance, and
19reclamation equipment, including replacement parts and
20equipment, and including equipment purchased for lease, but
21excluding motor vehicles required to be registered under the
22Illinois Vehicle Code. The changes made to this Section by
23Public Act 97-767 apply on and after July 1, 2003, but no claim
24for credit or refund is allowed on or after August 16, 2013
25(the effective date of Public Act 98-456) for such taxes paid
26during the period beginning July 1, 2003 and ending on August

 

 

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116, 2013 (the effective date of Public Act 98-456).
2    (13) Beginning January 1, 1992 and through June 30, 2016,
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages,
5soft drinks and food that has been prepared for immediate
6consumption) and prescription and non-prescription medicines,
7drugs, medical appliances, and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, when purchased for use by a person receiving medical
10assistance under Article V of the Illinois Public Aid Code who
11resides in a licensed long-term care facility, as defined in
12the Nursing Home Care Act, or in a licensed facility as defined
13in the ID/DD Community Care Act, the MC/DD Act, or the
14Specialized Mental Health Rehabilitation Act of 2013.
15    (14) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (15) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (15) is exempt from the
23provisions of Section 3-55, and the exemption provided for
24under this item (15) applies for all periods beginning May 30,
251995, but no claim for credit or refund is allowed on or after
26January 1, 2008 (the effective date of Public Act 95-88) for

 

 

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1such taxes paid during the period beginning May 30, 2000 and
2ending on January 1, 2008 (the effective date of Public Act
395-88).
4    (16) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients sold to a lessor
7who leases the equipment, under a lease of one year or longer
8executed or in effect at the time of the purchase, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11the Retailers' Occupation Tax Act.
12    (17) Personal property sold to a lessor who leases the
13property, under a lease of one year or longer executed or in
14effect at the time of the purchase, to a governmental body that
15has been issued an active tax exemption identification number
16by the Department under Section 1g of the Retailers'
17Occupation Tax Act.
18    (18) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is donated
21for disaster relief to be used in a State or federally declared
22disaster area in Illinois or bordering Illinois by a
23manufacturer or retailer that is registered in this State to a
24corporation, society, association, foundation, or institution
25that has been issued a sales tax exemption identification
26number by the Department that assists victims of the disaster

 

 

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1who reside within the declared disaster area.
2    (19) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in
5the performance of infrastructure repairs in this State,
6including but not limited to municipal roads and streets,
7access roads, bridges, sidewalks, waste disposal systems,
8water and sewer line extensions, water distribution and
9purification facilities, storm water drainage and retention
10facilities, and sewage treatment facilities, resulting from a
11State or federally declared disaster in Illinois or bordering
12Illinois when such repairs are initiated on facilities located
13in the declared disaster area within 6 months after the
14disaster.
15    (20) Beginning July 1, 1999, game or game birds sold at a
16"game breeding and hunting preserve area" as that term is used
17in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-55.
19    (21) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the
23Department to be organized and operated exclusively for
24educational purposes. For purposes of this exemption, "a
25corporation, limited liability company, society, association,
26foundation, or institution organized and operated exclusively

 

 

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1for educational purposes" means all tax-supported public
2schools, private schools that offer systematic instruction in
3useful branches of learning by methods common to public
4schools and that compare favorably in their scope and
5intensity with the course of study presented in tax-supported
6schools, and vocational or technical schools or institutes
7organized and operated exclusively to provide a course of
8study of not less than 6 weeks duration and designed to prepare
9individuals to follow a trade or to pursue a manual,
10technical, mechanical, industrial, business, or commercial
11occupation.
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
3other items, and replacement parts for these machines.
4Beginning January 1, 2002 and through June 30, 2003, machines
5and parts for machines used in commercial, coin-operated
6amusement and vending business if a use or occupation tax is
7paid on the gross receipts derived from the use of the
8commercial, coin-operated amusement and vending machines. This
9paragraph is 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
18the Retailers' Occupation Tax Act. This paragraph is exempt
19from the 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
26the Retailers' Occupation Tax Act. This paragraph is exempt

 

 

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1from the 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)
7for the purpose of subsequently transporting it outside this
8State for use or consumption thereafter solely outside this
9State or (ii) for the purpose of being processed, fabricated,
10or manufactured into, attached to, or incorporated into other
11tangible personal property to be transported outside this
12State and thereafter used or consumed solely outside this
13State. The Director of Revenue shall, pursuant to rules
14adopted in accordance with the Illinois Administrative
15Procedure Act, issue a permit to any taxpayer in good standing
16with the Department who is eligible for the exemption under
17this paragraph (26). The permit issued under this paragraph
18(26) shall authorize the holder, to the extent and in the
19manner specified in the rules adopted under this Act, to
20purchase tangible personal property from a retailer exempt
21from the taxes imposed by this Act. Taxpayers shall maintain
22all necessary 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
4under Title IV of the Environmental Protection Act. This
5paragraph is exempt 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
15instruments issued by the public-facilities corporation in
16connection with the development of the municipal convention
17hall. This exemption includes existing public-facilities
18corporations as provided in Section 11-65-25 of the Illinois
19Municipal Code. This paragraph is exempt from the provisions
20of Section 3-55.
21    (29) Beginning January 1, 2010 and continuing through
22December 31, 2024, materials, parts, equipment, components,
23and furnishings incorporated into or upon an aircraft as part
24of the modification, refurbishment, completion, replacement,
25repair, or maintenance of the aircraft. This exemption
26includes consumable supplies used in the modification,

 

 

HB1647- 55 -LRB103 00143 HLH 45148 b

1refurbishment, completion, replacement, repair, and
2maintenance of aircraft, but excludes any materials, parts,
3equipment, components, and consumable supplies used in the
4modification, replacement, repair, and maintenance of aircraft
5engines or power plants, whether such engines or power plants
6are installed or uninstalled upon any such aircraft.
7"Consumable supplies" include, but are not limited to,
8adhesive, tape, sandpaper, general purpose lubricants,
9cleaning solution, latex gloves, and protective films. This
10exemption applies only to the transfer of qualifying tangible
11personal property incident to the modification, refurbishment,
12completion, replacement, repair, or maintenance of an aircraft
13by persons who (i) hold an Air Agency Certificate and are
14empowered to operate an approved repair station by the Federal
15Aviation Administration, (ii) have a Class IV Rating, and
16(iii) conduct operations in accordance with Part 145 of the
17Federal Aviation Regulations. The exemption does not include
18aircraft operated by a commercial air carrier providing
19scheduled passenger air service pursuant to authority issued
20under Part 121 or Part 129 of the Federal Aviation
21Regulations. The changes made to this paragraph (29) by Public
22Act 98-534 are declarative of existing law. It is the intent of
23the General Assembly that the exemption under this paragraph
24(29) applies continuously from January 1, 2010 through
25December 31, 2024; however, no claim for credit or refund is
26allowed for taxes paid as a result of the disallowance of this

 

 

HB1647- 56 -LRB103 00143 HLH 45148 b

1exemption on or after January 1, 2015 and prior to February 5,
22020 (the effective date of Public Act 101-629) this
3amendatory Act of the 101st General Assembly.
4    (30) Beginning January 1, 2017 and through December 31,
52026, menstrual pads, tampons, and menstrual cups.
6    (31) Tangible personal property transferred to a purchaser
7who is exempt from tax by operation of federal law. This
8paragraph is exempt from the provisions of Section 3-55.
9    (32) Qualified tangible personal property used in the
10construction or operation of a data center that has been
11granted a certificate of exemption by the Department of
12Commerce and Economic Opportunity, whether that tangible
13personal property is purchased by the owner, operator, or
14tenant of the data center or by a contractor or subcontractor
15of the owner, operator, or tenant. Data centers that would
16have qualified for a certificate of exemption prior to January
171, 2020 had Public Act 101-31 this amendatory Act of the 101st
18General Assembly been in effect, may apply for and obtain an
19exemption for subsequent purchases of computer equipment or
20enabling software purchased or leased to upgrade, supplement,
21or replace computer equipment or enabling software purchased
22or leased in the original investment that would have
23qualified.
24    The Department of Commerce and Economic Opportunity shall
25grant a certificate of exemption under this item (32) to
26qualified data centers as defined by Section 605-1025 of the

 

 

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1Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3    For the purposes of this item (32):
4        "Data center" means a building or a series of
5    buildings rehabilitated or constructed to house working
6    servers in one physical location or multiple sites within
7    the State of Illinois.
8        "Qualified tangible personal property" means:
9    electrical systems and equipment; climate control and
10    chilling equipment and systems; mechanical systems and
11    equipment; monitoring and secure systems; emergency
12    generators; hardware; computers; servers; data storage
13    devices; network connectivity equipment; racks; cabinets;
14    telecommunications cabling infrastructure; raised floor
15    systems; peripheral components or systems; software;
16    mechanical, electrical, or plumbing systems; battery
17    systems; cooling systems and towers; temperature control
18    systems; other cabling; and other data center
19    infrastructure equipment and systems necessary to operate
20    qualified tangible personal property, including fixtures;
21    and component parts of any of the foregoing, including
22    installation, maintenance, repair, refurbishment, and
23    replacement of qualified tangible personal property to
24    generate, transform, transmit, distribute, or manage
25    electricity necessary to operate qualified tangible
26    personal property; and all other tangible personal

 

 

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1    property that is essential to the operations of a computer
2    data center. The term "qualified tangible personal
3    property" also includes building materials physically
4    incorporated in to the qualifying data center. To document
5    the exemption allowed under this Section, the retailer
6    must obtain from the purchaser a copy of the certificate
7    of eligibility issued by the Department of Commerce and
8    Economic Opportunity.
9    This item (32) is exempt from the provisions of Section
103-55.
11    (33) Beginning July 1, 2022, breast pumps, breast pump
12collection and storage supplies, and breast pump kits. This
13item (33) is exempt from the provisions of Section 3-55. As
14used in this item (33):
15        "Breast pump" means an electrically controlled or
16    manually controlled pump device designed or marketed to be
17    used to express milk from a human breast during lactation,
18    including the pump device and any battery, AC adapter, or
19    other power supply unit that is used to power the pump
20    device and is packaged and sold with the pump device at the
21    time of sale.
22        "Breast pump collection and storage supplies" means
23    items of tangible personal property designed or marketed
24    to be used in conjunction with a breast pump to collect
25    milk expressed from a human breast and to store collected
26    milk until it is ready for consumption.

 

 

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1        "Breast pump collection and storage supplies"
2    includes, but is not limited to: breast shields and breast
3    shield connectors; breast pump tubes and tubing adapters;
4    breast pump valves and membranes; backflow protectors and
5    backflow protector adaptors; bottles and bottle caps
6    specific to the operation of the breast pump; and breast
7    milk storage bags.
8        "Breast pump collection and storage supplies" does not
9    include: (1) bottles and bottle caps not specific to the
10    operation of the breast pump; (2) breast pump travel bags
11    and other similar carrying accessories, including ice
12    packs, labels, and other similar products; (3) breast pump
13    cleaning supplies; (4) nursing bras, bra pads, breast
14    shells, and other similar products; and (5) creams,
15    ointments, and other similar products that relieve
16    breastfeeding-related symptoms or conditions of the
17    breasts or nipples, unless sold as part of a breast pump
18    kit that is pre-packaged by the breast pump manufacturer
19    or distributor.
20        "Breast pump kit" means a kit that: (1) contains no
21    more than a breast pump, breast pump collection and
22    storage supplies, a rechargeable battery for operating the
23    breast pump, a breastmilk cooler, bottle stands, ice
24    packs, and a breast pump carrying case; and (2) is
25    pre-packaged as a breast pump kit by the breast pump
26    manufacturer or distributor.

 

 

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1    (34) (33) Tangible personal property sold by or on behalf
2of the State Treasurer pursuant to the Revised Uniform
3Unclaimed Property Act. This item (34) (33) is exempt from the
4provisions of Section 3-55.
5(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
6101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
770, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
875-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
9    Section 20. The Retailers' Occupation Tax Act is amended
10by changing Section 2-5 as follows:
 
11    (35 ILCS 120/2-5)
12    Sec. 2-5. Exemptions. Gross receipts from proceeds from
13the sale of the following tangible personal property are
14exempt from the tax imposed by this Act:
15        (1) Farm chemicals.
16        (2) Farm machinery and equipment, both new and used,
17    including that manufactured on special order, certified by
18    the purchaser to be used primarily for production
19    agriculture or State or federal agricultural programs,
20    including individual replacement parts for the machinery
21    and equipment, including machinery and equipment purchased
22    for lease, and including implements of husbandry defined
23    in Section 1-130 of the Illinois Vehicle Code, farm
24    machinery and agricultural chemical and fertilizer

 

 

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1    spreaders, and nurse wagons required to be registered
2    under Section 3-809 of the Illinois Vehicle Code, but
3    excluding other motor vehicles required to be registered
4    under the Illinois Vehicle Code. Horticultural polyhouses
5    or hoop houses used for propagating, growing, or
6    overwintering plants shall be considered farm machinery
7    and equipment under this item (2). Agricultural chemical
8    tender tanks and dry boxes shall include units sold
9    separately from a motor vehicle required to be licensed
10    and units sold mounted on a motor vehicle required to be
11    licensed, if the selling price of the tender is separately
12    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.
2        Beginning on January 1, 2024, farm machinery and
3    equipment also includes electrical power generation
4    equipment used primarily for production agriculture.
5        This item (2) is exempt from the provisions of Section
6    2-70.
7        (3) Until July 1, 2003, distillation machinery and
8    equipment, sold as a unit or kit, assembled or installed
9    by the retailer, certified by the user to be used only for
10    the production of ethyl alcohol that will be used for
11    consumption as motor fuel or as a component of motor fuel
12    for the personal use of the user, and not subject to sale
13    or resale.
14        (4) Until July 1, 2003 and beginning again September
15    1, 2004 through August 30, 2014, graphic arts machinery
16    and equipment, including repair and replacement parts,
17    both new and used, and including that manufactured on
18    special order or purchased for lease, certified by the
19    purchaser to be used primarily for graphic arts
20    production. Equipment includes chemicals or chemicals
21    acting as catalysts but only if the chemicals or chemicals
22    acting as catalysts effect a direct and immediate change
23    upon a graphic arts product. Beginning on July 1, 2017,
24    graphic arts machinery and equipment is included in the
25    manufacturing and assembling machinery and equipment
26    exemption under paragraph (14).

 

 

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1        (5) A motor vehicle that is used for automobile
2    renting, as defined in the Automobile Renting Occupation
3    and Use Tax Act. This paragraph is exempt from the
4    provisions of Section 2-70.
5        (6) Personal property sold by a teacher-sponsored
6    student organization affiliated with an elementary or
7    secondary school located in Illinois.
8        (7) Until July 1, 2003, proceeds of that portion of
9    the selling price of a passenger car the sale of which is
10    subject to the Replacement Vehicle Tax.
11        (8) Personal property sold to an Illinois county fair
12    association for use in conducting, operating, or promoting
13    the county fair.
14        (9) Personal property sold to a not-for-profit arts or
15    cultural organization that establishes, by proof required
16    by the Department by rule, that it has received an
17    exemption under Section 501(c)(3) of the Internal Revenue
18    Code and that is organized and operated primarily for the
19    presentation or support of arts or cultural programming,
20    activities, or services. These organizations include, but
21    are not limited to, music and dramatic arts organizations
22    such as symphony orchestras and theatrical groups, arts
23    and cultural service organizations, local arts councils,
24    visual arts organizations, and media arts organizations.
25    On and after July 1, 2001 (the effective date of Public Act
26    92-35), however, an entity otherwise eligible for this

 

 

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

 

 

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

 

 

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

 

 

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1    defined in paragraph (4) of this Section.
2        (15) Proceeds of mandatory service charges separately
3    stated on customers' bills for purchase and consumption of
4    food and beverages, to the extent that the proceeds of the
5    service charge are in fact turned over as tips or as a
6    substitute for tips to the employees who participate
7    directly in preparing, serving, hosting or cleaning up the
8    food or beverage function with respect to which the
9    service charge is imposed.
10        (16) Tangible personal property sold to a purchaser if
11    the purchaser is exempt from use tax by operation of
12    federal law. This paragraph is exempt from the provisions
13    of Section 2-70.
14        (17) Tangible personal property sold to a common
15    carrier by rail or motor that receives the physical
16    possession of the property in Illinois and that transports
17    the property, or shares with another common carrier in the
18    transportation of the property, out of Illinois on a
19    standard uniform bill of lading showing the seller of the
20    property as the shipper or consignor of the property to a
21    destination outside Illinois, for use outside Illinois.
22        (18) Legal tender, currency, medallions, or gold or
23    silver coinage issued by the State of Illinois, the
24    government of the United States of America, or the
25    government of any foreign country, and bullion.
26        (19) Until July 1, 2003, oil field exploration,

 

 

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

 

 

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1    2013 (the effective date of Public Act 98-456).
2        (22) Until June 30, 2013, fuel and petroleum products
3    sold to or used by an air carrier, certified by the carrier
4    to be used for consumption, shipment, or storage in the
5    conduct of its business as an air common carrier, for a
6    flight destined for or returning from a location or
7    locations outside the United States without regard to
8    previous or subsequent domestic stopovers.
9        Beginning July 1, 2013, fuel and petroleum products
10    sold to or used by an air carrier, certified by the carrier
11    to be used for consumption, shipment, or storage in the
12    conduct of its business as an air common carrier, for a
13    flight that (i) is engaged in foreign trade or is engaged
14    in trade between the United States and any of its
15    possessions and (ii) transports at least one individual or
16    package for hire from the city of origination to the city
17    of final destination on the same aircraft, without regard
18    to a change in the flight number of that aircraft.
19        (23) A transaction in which the purchase order is
20    received by a florist who is located outside Illinois, but
21    who has a florist located in Illinois deliver the property
22    to the purchaser or the purchaser's donee in Illinois.
23        (24) Fuel consumed or used in the operation of ships,
24    barges, or vessels that are used primarily in or for the
25    transportation of property or the conveyance of persons
26    for hire on rivers bordering on this State if the fuel is

 

 

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1    delivered by the seller to the purchaser's barge, ship, or
2    vessel while it is afloat upon that bordering river.
3        (25) Except as provided in item (25-5) of this
4    Section, a motor vehicle sold in this State to a
5    nonresident even though the motor vehicle is delivered to
6    the nonresident in this State, if the motor vehicle is not
7    to be titled in this State, and if a drive-away permit is
8    issued to the motor vehicle as provided in Section 3-603
9    of the Illinois Vehicle Code or if the nonresident
10    purchaser has vehicle registration plates to transfer to
11    the motor vehicle upon returning to his or her home state.
12    The issuance of the drive-away permit or having the
13    out-of-state registration plates to be transferred is
14    prima facie evidence that the motor vehicle will not be
15    titled in this State.
16        (25-5) The exemption under item (25) does not apply if
17    the state in which the motor vehicle will be titled does
18    not allow a reciprocal exemption for a motor vehicle sold
19    and delivered in that state to an Illinois resident but
20    titled in Illinois. The tax collected under this Act on
21    the sale of a motor vehicle in this State to a resident of
22    another state that does not allow a reciprocal exemption
23    shall be imposed at a rate equal to the state's rate of tax
24    on taxable property in the state in which the purchaser is
25    a resident, except that the tax shall not exceed the tax
26    that would otherwise be imposed under this Act. At the

 

 

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1    time of the sale, the purchaser shall execute a statement,
2    signed under penalty of perjury, of his or her intent to
3    title the vehicle in the state in which the purchaser is a
4    resident within 30 days after the sale and of the fact of
5    the payment to the State of Illinois of tax in an amount
6    equivalent to the state's rate of tax on taxable property
7    in his or her state of residence and shall submit the
8    statement to the appropriate tax collection agency in his
9    or her state of residence. In addition, the retailer must
10    retain a signed copy of the statement in his or her
11    records. Nothing in this item shall be construed to
12    require the removal of the vehicle from this state
13    following the filing of an intent to title the vehicle in
14    the purchaser's state of residence if the purchaser titles
15    the vehicle in his or her state of residence within 30 days
16    after the date of sale. The tax collected under this Act in
17    accordance with this item (25-5) shall be proportionately
18    distributed as if the tax were collected at the 6.25%
19    general rate imposed under this Act.
20        (25-7) Beginning on July 1, 2007, no tax is imposed
21    under this Act on the sale of an aircraft, as defined in
22    Section 3 of the Illinois Aeronautics Act, if all of the
23    following conditions are met:
24            (1) the aircraft leaves this State within 15 days
25        after the later of either the issuance of the final
26        billing for the sale of the aircraft, or the

 

 

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1        authorized approval for return to service, completion
2        of the maintenance record entry, and completion of the
3        test flight and ground test for inspection, as
4        required by 14 CFR C.F.R. 91.407;
5            (2) the aircraft is not based or registered in
6        this State after the sale of the aircraft; and
7            (3) the seller retains in his or her books and
8        records and provides to the Department a signed and
9        dated certification from the purchaser, on a form
10        prescribed by the Department, certifying that the
11        requirements of this item (25-7) are met. The
12        certificate must also include the name and address of
13        the purchaser, the address of the location where the
14        aircraft is to be titled or registered, the address of
15        the primary physical location of the aircraft, and
16        other information that the Department may reasonably
17        require.
18        For purposes of this item (25-7):
19        "Based in this State" means hangared, stored, or
20    otherwise used, excluding post-sale customizations as
21    defined in this Section, for 10 or more days in each
22    12-month period immediately following the date of the sale
23    of the aircraft.
24        "Registered in this State" means an aircraft
25    registered with the Department of Transportation,
26    Aeronautics Division, or titled or registered with the

 

 

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

 

 

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1    exemption identification number by the Department under
2    Section 1g of this Act.
3        (29) Personal property sold to a lessor who leases the
4    property, under a lease of one year or longer executed or
5    in effect at the time of the purchase, to a governmental
6    body that has been issued an active tax exemption
7    identification number by the Department under Section 1g
8    of this Act.
9        (30) Beginning with taxable years ending on or after
10    December 31, 1995 and ending with taxable years ending on
11    or before December 31, 2004, personal property that is
12    donated for disaster relief to be used in a State or
13    federally declared disaster area in Illinois or bordering
14    Illinois by a manufacturer or retailer that is registered
15    in this State to a corporation, society, association,
16    foundation, or institution that has been issued a sales
17    tax exemption identification number by the Department that
18    assists victims of the disaster who reside within the
19    declared disaster area.
20        (31) Beginning with taxable years ending on or after
21    December 31, 1995 and ending with taxable years ending on
22    or before December 31, 2004, personal property that is
23    used in the performance of infrastructure repairs in this
24    State, including but not limited to municipal roads and
25    streets, access roads, bridges, sidewalks, waste disposal
26    systems, water and sewer line extensions, water

 

 

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1    distribution and purification facilities, storm water
2    drainage and retention facilities, and sewage treatment
3    facilities, resulting from a State or federally declared
4    disaster in Illinois or bordering Illinois when such
5    repairs are initiated on facilities located in the
6    declared disaster area within 6 months after the disaster.
7        (32) Beginning July 1, 1999, game or game birds sold
8    at a "game breeding and hunting preserve area" as that
9    term is used in the Wildlife Code. This paragraph is
10    exempt from the provisions of Section 2-70.
11        (33) A motor vehicle, as that term is defined in
12    Section 1-146 of the Illinois Vehicle Code, that is
13    donated to a corporation, limited liability company,
14    society, association, foundation, or institution that is
15    determined by the Department to be organized and operated
16    exclusively for educational purposes. For purposes of this
17    exemption, "a corporation, limited liability company,
18    society, association, foundation, or institution organized
19    and operated exclusively for educational purposes" means
20    all tax-supported public schools, private schools that
21    offer systematic instruction in useful branches of
22    learning by methods common to public schools and that
23    compare favorably in their scope and intensity with the
24    course of study presented in tax-supported schools, and
25    vocational or technical schools or institutes organized
26    and operated exclusively to provide a course of study of

 

 

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1    not less than 6 weeks duration and designed to prepare
2    individuals to follow a trade or to pursue a manual,
3    technical, mechanical, industrial, business, or commercial
4    occupation.
5        (34) Beginning January 1, 2000, personal property,
6    including food, purchased through fundraising events for
7    the benefit of a public or private elementary or secondary
8    school, a group of those schools, or one or more school
9    districts if the events are sponsored by an entity
10    recognized by the school district that consists primarily
11    of volunteers and includes parents and teachers of the
12    school children. This paragraph does not apply to
13    fundraising events (i) for the benefit of private home
14    instruction or (ii) for which the fundraising entity
15    purchases the personal property sold at the events from
16    another individual or entity that sold the property for
17    the purpose of resale by the fundraising entity and that
18    profits from the sale to the fundraising entity. This
19    paragraph is exempt from the provisions of Section 2-70.
20        (35) Beginning January 1, 2000 and through December
21    31, 2001, new or used automatic vending machines that
22    prepare and serve hot food and beverages, including
23    coffee, soup, and other items, and replacement parts for
24    these machines. Beginning January 1, 2002 and through June
25    30, 2003, machines and parts for machines used in
26    commercial, coin-operated amusement and vending business

 

 

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1    if a use or occupation tax is paid on the gross receipts
2    derived from the use of the commercial, coin-operated
3    amusement and vending machines. This paragraph is exempt
4    from the provisions of Section 2-70.
5        (35-5) Beginning August 23, 2001 and through June 30,
6    2016, food for human consumption that is to be consumed
7    off the premises where it is sold (other than alcoholic
8    beverages, soft drinks, and food that has been prepared
9    for immediate consumption) and prescription and
10    nonprescription medicines, drugs, medical appliances, and
11    insulin, urine testing materials, syringes, and needles
12    used by diabetics, for human use, when purchased for use
13    by a person receiving medical assistance under Article V
14    of the Illinois Public Aid Code who resides in a licensed
15    long-term care facility, as defined in the Nursing Home
16    Care Act, or a licensed facility as defined in the ID/DD
17    Community Care Act, the MC/DD Act, or the Specialized
18    Mental Health Rehabilitation Act of 2013.
19        (36) Beginning August 2, 2001, computers and
20    communications equipment utilized for any hospital purpose
21    and equipment used in the diagnosis, analysis, or
22    treatment of hospital patients sold to a lessor who leases
23    the equipment, under a lease of one year or longer
24    executed or in effect at the time of the purchase, to a
25    hospital that has been issued an active tax exemption
26    identification number by the Department under Section 1g

 

 

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1    of this Act. This paragraph is exempt from the provisions
2    of Section 2-70.
3        (37) Beginning August 2, 2001, personal property sold
4    to a lessor who leases the property, under a lease of one
5    year or longer executed or in effect at the time of the
6    purchase, to a governmental body that has been issued an
7    active tax exemption identification number by the
8    Department under Section 1g of this Act. This paragraph is
9    exempt from the provisions of Section 2-70.
10        (38) Beginning on January 1, 2002 and through June 30,
11    2016, tangible personal property purchased from an
12    Illinois retailer by a taxpayer engaged in centralized
13    purchasing activities in Illinois who will, upon receipt
14    of the property in Illinois, temporarily store the
15    property in Illinois (i) for the purpose of subsequently
16    transporting it outside this State for use or consumption
17    thereafter solely outside this State or (ii) for the
18    purpose of being processed, fabricated, or manufactured
19    into, attached to, or incorporated into other tangible
20    personal property to be transported outside this State and
21    thereafter used or consumed solely outside this State. The
22    Director of Revenue shall, pursuant to rules adopted in
23    accordance with the Illinois Administrative Procedure Act,
24    issue a permit to any taxpayer in good standing with the
25    Department who is eligible for the exemption under this
26    paragraph (38). The permit issued under this paragraph

 

 

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1    (38) shall authorize the holder, to the extent and in the
2    manner specified in the rules adopted under this Act, to
3    purchase tangible personal property from a retailer exempt
4    from the taxes imposed by this Act. Taxpayers shall
5    maintain all necessary books and records to substantiate
6    the use and consumption of all such tangible personal
7    property outside of the State of Illinois.
8        (39) Beginning January 1, 2008, tangible personal
9    property used in the construction or maintenance of a
10    community water supply, as defined under Section 3.145 of
11    the Environmental Protection Act, that is operated by a
12    not-for-profit corporation that holds a valid water supply
13    permit issued under Title IV of the Environmental
14    Protection Act. This paragraph is exempt from the
15    provisions of Section 2-70.
16        (40) Beginning January 1, 2010 and continuing through
17    December 31, 2024, materials, parts, equipment,
18    components, and furnishings incorporated into or upon an
19    aircraft as part of the modification, refurbishment,
20    completion, replacement, repair, or maintenance of the
21    aircraft. This exemption includes consumable supplies used
22    in the modification, refurbishment, completion,
23    replacement, repair, and maintenance of aircraft, but
24    excludes any materials, parts, equipment, components, and
25    consumable supplies used in the modification, replacement,
26    repair, and maintenance of aircraft engines or power

 

 

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1    plants, whether such engines or power plants are installed
2    or uninstalled upon any such aircraft. "Consumable
3    supplies" include, but are not limited to, adhesive, tape,
4    sandpaper, general purpose lubricants, cleaning solution,
5    latex gloves, and protective films. This exemption applies
6    only to the sale of qualifying tangible personal property
7    to persons who modify, refurbish, complete, replace, or
8    maintain an aircraft and who (i) hold an Air Agency
9    Certificate and are empowered to operate an approved
10    repair station by the Federal Aviation Administration,
11    (ii) have a Class IV Rating, and (iii) conduct operations
12    in accordance with Part 145 of the Federal Aviation
13    Regulations. The exemption does not include aircraft
14    operated by a commercial air carrier providing scheduled
15    passenger air service pursuant to authority issued under
16    Part 121 or Part 129 of the Federal Aviation Regulations.
17    The changes made to this paragraph (40) by Public Act
18    98-534 are declarative of existing law. It is the intent
19    of the General Assembly that the exemption under this
20    paragraph (40) applies continuously from January 1, 2010
21    through December 31, 2024; however, no claim for credit or
22    refund is allowed for taxes paid as a result of the
23    disallowance of this exemption on or after January 1, 2015
24    and prior to February 5, 2020 (the effective date of
25    Public Act 101-629) this amendatory Act of the 101st
26    General Assembly.

 

 

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

 

 

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

 

 

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

 

 

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1        certificate of eligibility issued by the Department of
2        Commerce and Economic Opportunity.
3        This item (44) is exempt from the provisions of
4    Section 2-70.
5        (45) Beginning January 1, 2020 and through December
6    31, 2020, sales of tangible personal property made by a
7    marketplace seller over a marketplace for which tax is due
8    under this Act but for which use tax has been collected and
9    remitted to the Department by a marketplace facilitator
10    under Section 2d of the Use Tax Act are exempt from tax
11    under this Act. A marketplace seller claiming this
12    exemption shall maintain books and records demonstrating
13    that the use tax on such sales has been collected and
14    remitted by a marketplace facilitator. Marketplace sellers
15    that have properly remitted tax under this Act on such
16    sales may file a claim for credit as provided in Section 6
17    of this Act. No claim is allowed, however, for such taxes
18    for which a credit or refund has been issued to the
19    marketplace facilitator under the Use Tax Act, or for
20    which the marketplace facilitator has filed a claim for
21    credit or refund under the Use Tax Act.
22        (46) Beginning July 1, 2022, breast pumps, breast pump
23    collection and storage supplies, and breast pump kits.
24    This item (46) is exempt from the provisions of Section
25    2-70. As used in this item (46):
26        "Breast pump" means an electrically controlled or

 

 

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

 

 

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1    breastfeeding-related symptoms or conditions of the
2    breasts or nipples, unless sold as part of a breast pump
3    kit that is pre-packaged by the breast pump manufacturer
4    or distributor.
5        "Breast pump kit" means a kit that: (1) contains no
6    more than a breast pump, breast pump collection and
7    storage supplies, a rechargeable battery for operating the
8    breast pump, a breastmilk cooler, bottle stands, ice
9    packs, and a breast pump carrying case; and (2) is
10    pre-packaged as a breast pump kit by the breast pump
11    manufacturer or distributor.
12        (47) (46) Tangible personal property sold by or on
13    behalf of the State Treasurer pursuant to the Revised
14    Uniform Unclaimed Property Act. This item (47) (46) is
15    exempt from the provisions of Section 2-70.
16(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
17101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
188-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
19102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
20eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.