103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3434

 

Introduced 2/17/2023, by Rep. Dave Severin

 

SYNOPSIS AS INTRODUCED:
 
See Index

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


LRB103 28571 HLH 54952 b

 

 

A BILL FOR

 

HB3434LRB103 28571 HLH 54952 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 Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-810 as follows:
 
7    (20 ILCS 2505/2505-810 new)
8    Sec. 2505-810. Exemption for materials, equipment, or
9supplies of a bid.
10    (a) As used in this Section:
11    "In-State retailer or serviceman" means a retailer or
12serviceman with a principal place of business located in the
13State.
14    "Local provisions of the Use Tax Act, the Service Use Tax
15Act, the Service Occupation Tax Act, and the Retailers'
16Occupation Tax Act" means use taxes or occupation taxes
17imposed under the Counties Code, the Illinois Municipal Code,
18the Salem Civic Center Law of 1997 of the Civic Center Code,
19the Metropolitan Pier and Exposition Authority Act, the Flood
20Prevention District Act, the Metro-East Park and Recreation
21District Act, the Local Mass Transit District Act, the
22Regional Transportation Authority Act, and the Water
23Commission Act of 1985.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1extent that the proceeds of the service charge are in fact
2turned over as tips or as a substitute for tips to the
3employees who participate directly in preparing, serving,
4hosting or cleaning up the food or beverage function with
5respect to which the service charge is imposed.
6    (14) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of
8rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
9pipe and tubular goods, including casing and drill strings,
10(iii) pumps and pump-jack units, (iv) storage tanks and flow
11lines, (v) any individual replacement part for oil field
12exploration, drilling, and production equipment, and (vi)
13machinery and equipment purchased for lease; but excluding
14motor vehicles required to be registered under the Illinois
15Vehicle Code.
16    (15) Photoprocessing machinery and equipment, including
17repair and replacement parts, both new and used, including
18that manufactured on special order, certified by the purchaser
19to be used primarily for photoprocessing, and including
20photoprocessing machinery and equipment purchased for lease.
21    (16) Until July 1, 2028, coal and aggregate exploration,
22mining, off-highway hauling, processing, maintenance, and
23reclamation equipment, including replacement parts and
24equipment, and including equipment purchased for lease, but
25excluding motor vehicles required to be registered under the
26Illinois Vehicle Code. The changes made to this Section by

 

 

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1Public Act 97-767 apply on and after July 1, 2003, but no claim
2for credit or refund is allowed on or after August 16, 2013
3(the effective date of Public Act 98-456) for such taxes paid
4during the period beginning July 1, 2003 and ending on August
516, 2013 (the effective date of Public Act 98-456).
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order
22for a particular purchaser. The exemption provided by this
23paragraph (18) includes production related tangible personal
24property, as defined in Section 3-50, purchased on or after
25July 1, 2019. The exemption provided by this paragraph (18)
26does not include machinery and equipment used in (i) the

 

 

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1generation of electricity for wholesale or retail sale; (ii)
2the generation or treatment of natural or artificial gas for
3wholesale or retail sale that is delivered to customers
4through pipes, pipelines, or mains; or (iii) the treatment of
5water for wholesale or retail sale that is delivered to
6customers through pipes, pipelines, or mains. The provisions
7of Public Act 98-583 are declaratory of existing law as to the
8meaning and scope of this exemption. Beginning on July 1,
92017, the exemption provided by this paragraph (18) includes,
10but is not limited to, graphic arts machinery and equipment,
11as defined in paragraph (6) of this Section.
12    (19) Personal property delivered to a purchaser or
13purchaser's donee inside Illinois when the purchase order for
14that personal property was received by a florist located
15outside Illinois who has a florist located inside Illinois
16deliver the personal property.
17    (20) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (21) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (21) is exempt from the
25provisions of Section 3-90, and the exemption provided for
26under this item (21) applies for all periods beginning May 30,

 

 

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11995, but no claim for credit or refund is allowed on or after
2January 1, 2008 for such taxes paid during the period
3beginning May 30, 2000 and ending on January 1, 2008.
4    (22) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients purchased by a
7lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time the lessor would
9otherwise be subject to the tax imposed by this Act, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act. If the equipment is leased
13in a manner that does not qualify for this exemption or is used
14in any other non-exempt manner, the lessor shall be liable for
15the tax imposed under this Act or the Service Use Tax Act, as
16the case may be, based on the fair market value of the property
17at the time the non-qualifying use occurs. No lessor shall
18collect or attempt to collect an amount (however designated)
19that purports to reimburse that lessor for the tax imposed by
20this Act or the Service Use Tax Act, as the case may be, if the
21tax has not been paid by the lessor. If a lessor improperly
22collects any such amount from the lessee, the lessee shall
23have a legal right to claim a refund of that amount from the
24lessor. If, however, that amount is not refunded to the lessee
25for any reason, the lessor is liable to pay that amount to the
26Department.

 

 

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

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (25) 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 used in
9the performance of infrastructure repairs in this State,
10including but not limited to municipal roads and streets,
11access roads, bridges, sidewalks, waste disposal systems,
12water and sewer line extensions, water distribution and
13purification facilities, storm water drainage and retention
14facilities, and sewage treatment facilities, resulting from a
15State or federally declared disaster in Illinois or bordering
16Illinois when such repairs are initiated on facilities located
17in the declared disaster area within 6 months after the
18disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-90.
23    (27) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the

 

 

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

 

 

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1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-90.
4    (29) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and
7other items, and replacement parts for these machines.
8Beginning January 1, 2002 and through June 30, 2003, machines
9and parts for machines used in commercial, coin-operated
10amusement and vending business if a use or occupation tax is
11paid on the gross receipts derived from the use of the
12commercial, coin-operated amusement and vending machines. This
13paragraph is exempt from the provisions of Section 3-90.
14    (30) Beginning January 1, 2001 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages,
17soft drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

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

 

 

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1Public Act 92-227), personal property purchased by a lessor
2who leases the property, under a lease of one year or longer
3executed or in effect at the time the lessor would otherwise be
4subject to the tax imposed by this Act, to a governmental body
5that has been issued an active sales tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the property is leased
8in a manner that does not qualify for this exemption or used in
9any other nonexempt manner, the lessor shall be liable for the
10tax imposed under this Act or the Service Use Tax Act, as the
11case may be, based on the fair market value of the property at
12the time the nonqualifying use occurs. No lessor shall collect
13or attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Service Use Tax Act, as the case may be, if the tax
16has not been paid by the lessor. If a lessor improperly
17collects any such amount from the lessee, the lessee shall
18have a legal right to claim a refund of that amount from the
19lessor. If, however, that amount is not refunded to the lessee
20for any reason, the lessor is liable to pay that amount to the
21Department. This paragraph is exempt from the provisions of
22Section 3-90.
23    (33) On and after July 1, 2003 and through June 30, 2004,
24the use in this State of motor vehicles of the second division
25with a gross vehicle weight in excess of 8,000 pounds and that
26are subject to the commercial distribution fee imposed under

 

 

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1Section 3-815.1 of the Illinois Vehicle Code. Beginning on
2July 1, 2004 and through June 30, 2005, the use in this State
3of motor vehicles of the second division: (i) with a gross
4vehicle weight rating in excess of 8,000 pounds; (ii) that are
5subject to the commercial distribution fee imposed under
6Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
7are primarily used for commercial purposes. Through June 30,
82005, this exemption applies to repair and replacement parts
9added after the initial purchase of such a motor vehicle if
10that motor vehicle is used in a manner that would qualify for
11the rolling stock exemption otherwise provided for in this
12Act. For purposes of this paragraph, the term "used for
13commercial purposes" means the transportation of persons or
14property in furtherance of any commercial or industrial
15enterprise, whether for-hire or not.
16    (34) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued
21under Title IV of the Environmental Protection Act. This
22paragraph is exempt from the provisions of Section 3-90.
23    (35) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

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1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the use of qualifying tangible
13personal property by persons who modify, refurbish, complete,
14repair, replace, or maintain aircraft and who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part
22129 of the Federal Aviation Regulations. The changes made to
23this paragraph (35) by Public Act 98-534 are declarative of
24existing law. It is the intent of the General Assembly that the
25exemption under this paragraph (35) applies continuously from
26January 1, 2010 through December 31, 2024; however, no claim

 

 

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1for credit or refund is allowed for taxes paid as a result of
2the disallowance of this exemption on or after January 1, 2015
3and prior to February 5, 2020 (the effective date of Public Act
4101-629) this amendatory Act of the 101st General Assembly.
5    (36) Tangible personal property purchased by a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt
14instruments issued by the public-facilities corporation in
15connection with the development of the municipal convention
16hall. This exemption includes existing public-facilities
17corporations as provided in Section 11-65-25 of the Illinois
18Municipal Code. This paragraph is exempt from the provisions
19of Section 3-90.
20    (37) Beginning January 1, 2017 and through December 31,
212026, menstrual pads, tampons, and menstrual cups.
22    (38) Merchandise that is subject to the Rental Purchase
23Agreement Occupation and Use Tax. The purchaser must certify
24that the item is purchased to be rented subject to a rental
25purchase agreement, as defined in the Rental Purchase
26Agreement Act, and provide proof of registration under the

 

 

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1Rental Purchase Agreement Occupation and Use Tax Act. This
2paragraph is exempt from the provisions of Section 3-90.
3    (39) Tangible personal property purchased by a purchaser
4who is exempt from the tax imposed by this Act by operation of
5federal law. This paragraph is exempt from the provisions of
6Section 3-90.
7    (40) Qualified tangible personal property used in the
8construction or operation of a data center that has been
9granted a certificate of exemption by the Department of
10Commerce and Economic Opportunity, whether that tangible
11personal property is purchased by the owner, operator, or
12tenant of the data center or by a contractor or subcontractor
13of the owner, operator, or tenant. Data centers that would
14have qualified for a certificate of exemption prior to January
151, 2020 had Public Act 101-31 been in effect may apply for and
16obtain an exemption for subsequent purchases of computer
17equipment or enabling software purchased or leased to upgrade,
18supplement, or replace computer equipment or enabling software
19purchased or leased in the original investment that would have
20qualified.
21    The Department of Commerce and Economic Opportunity shall
22grant a certificate of exemption under this item (40) to
23qualified data centers as defined by Section 605-1025 of the
24Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    For the purposes of this item (40):

 

 

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

 

 

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1    incorporated in to the qualifying data center. To document
2    the exemption allowed under this Section, the retailer
3    must obtain from the purchaser a copy of the certificate
4    of eligibility issued by the Department of Commerce and
5    Economic Opportunity.
6    This item (40) is exempt from the provisions of Section
73-90.
8    (41) Beginning July 1, 2022, breast pumps, breast pump
9collection and storage supplies, and breast pump kits. This
10item (41) is exempt from the provisions of Section 3-90. As
11used in this item (41):
12        "Breast pump" means an electrically controlled or
13    manually controlled pump device designed or marketed to be
14    used to express milk from a human breast during lactation,
15    including the pump device and any battery, AC adapter, or
16    other power supply unit that is used to power the pump
17    device and is packaged and sold with the pump device at the
18    time of sale.
19        "Breast pump collection and storage supplies" means
20    items of tangible personal property designed or marketed
21    to be used in conjunction with a breast pump to collect
22    milk expressed from a human breast and to store collected
23    milk until it is ready for consumption.
24        "Breast pump collection and storage supplies"
25    includes, but is not limited to: breast shields and breast
26    shield connectors; breast pump tubes and tubing adapters;

 

 

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1    breast pump valves and membranes; backflow protectors and
2    backflow protector adaptors; bottles and bottle caps
3    specific to the operation of the breast pump; and breast
4    milk storage bags.
5        "Breast pump collection and storage supplies" does not
6    include: (1) bottles and bottle caps not specific to the
7    operation of the breast pump; (2) breast pump travel bags
8    and other similar carrying accessories, including ice
9    packs, labels, and other similar products; (3) breast pump
10    cleaning supplies; (4) nursing bras, bra pads, breast
11    shells, and other similar products; and (5) creams,
12    ointments, and other similar products that relieve
13    breastfeeding-related symptoms or conditions of the
14    breasts or nipples, unless sold as part of a breast pump
15    kit that is pre-packaged by the breast pump manufacturer
16    or distributor.
17        "Breast pump kit" means a kit that: (1) contains no
18    more than a breast pump, breast pump collection and
19    storage supplies, a rechargeable battery for operating the
20    breast pump, a breastmilk cooler, bottle stands, ice
21    packs, and a breast pump carrying case; and (2) is
22    pre-packaged as a breast pump kit by the breast pump
23    manufacturer or distributor.
24    (42) (41) Tangible personal property sold by or on behalf
25of the State Treasurer pursuant to the Revised Uniform
26Unclaimed Property Act. This item (42) (41) is exempt from the

 

 

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1provisions of Section 3-90.
2    (43) Tangible personal property for which a certificate of
3exemption has been issued under Section 2505-810 of the
4Department of Revenue Law of the Civil Administrative Code of
5Illinois. This paragraph is exempt from the provisions of
6Section 3-90.
7(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
8101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
96-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
10102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
11eff. 5-27-22; revised 8-1-22.)
 
12    Section 15. The Service Use Tax Act is amended by changing
13Section 3-5 as follows:
 
14    (35 ILCS 110/3-5)
15    Sec. 3-5. Exemptions. Use of the following tangible
16personal property is exempt from the tax imposed by this Act:
17    (1) Personal property purchased from a corporation,
18society, association, foundation, institution, or
19organization, other than a limited liability company, that is
20organized and operated as a not-for-profit service enterprise
21for the benefit of persons 65 years of age or older if the
22personal property was not purchased by the enterprise for the
23purpose of resale by the enterprise.
24    (2) Personal property purchased by a non-profit Illinois

 

 

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1county fair association for use in conducting, operating, or
2promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts
4or cultural organization that establishes, by proof required
5by the Department by rule, that it has received an exemption
6under Section 501(c)(3) of the Internal Revenue Code and that
7is organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after July 1, 2001 (the
14effective date of Public Act 92-35), however, an entity
15otherwise eligible for this exemption shall not make tax-free
16purchases unless it has an active identification number issued
17by the Department.
18    (4) Legal tender, currency, medallions, or gold or silver
19coinage issued by the State of Illinois, the government of the
20United States of America, or the government of any foreign
21country, and bullion.
22    (5) Until July 1, 2003 and beginning again on September 1,
232004 through August 30, 2014, graphic arts machinery and
24equipment, including repair and replacement parts, both new
25and used, and including that manufactured on special order or
26purchased for lease, certified by the purchaser to be used

 

 

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

 

 

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1motor vehicle required to be licensed and units sold mounted
2on a motor vehicle required to be licensed if the selling price
3of the tender is separately stated.
4    Farm machinery and equipment shall include precision
5farming equipment that is installed or purchased to be
6installed on farm machinery and equipment including, but not
7limited to, tractors, harvesters, sprayers, planters, seeders,
8or spreaders. Precision farming equipment includes, but is not
9limited to, soil testing sensors, computers, monitors,
10software, global positioning and mapping systems, and other
11such equipment.
12    Farm machinery and equipment also includes computers,
13sensors, software, and related equipment used primarily in the
14computer-assisted operation of production agriculture
15facilities, equipment, and activities such as, but not limited
16to, the collection, monitoring, and correlation of animal and
17crop data for the purpose of formulating animal diets and
18agricultural chemicals. This item (7) is exempt from the
19provisions of Section 3-75.
20    (8) Until June 30, 2013, fuel and petroleum products sold
21to or used by an air common carrier, certified by the carrier
22to be used for consumption, shipment, or storage in the
23conduct of its business as an air common carrier, for a flight
24destined for or returning from a location or locations outside
25the United States without regard to previous or subsequent
26domestic stopovers.

 

 

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

 

 

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1machinery and equipment purchased for lease; but excluding
2motor vehicles required to be registered under the Illinois
3Vehicle Code.
4    (11) Proceeds from the sale of photoprocessing machinery
5and equipment, including repair and replacement parts, both
6new and used, including that manufactured on special order,
7certified by the purchaser to be used primarily for
8photoprocessing, and including photoprocessing machinery and
9equipment purchased for lease.
10    (12) Until July 1, 2028, coal and aggregate exploration,
11mining, off-highway hauling, processing, maintenance, and
12reclamation equipment, including replacement parts and
13equipment, and including equipment purchased for lease, but
14excluding motor vehicles required to be registered under the
15Illinois Vehicle Code. The changes made to this Section by
16Public Act 97-767 apply on and after July 1, 2003, but no claim
17for credit or refund is allowed on or after August 16, 2013
18(the effective date of Public Act 98-456) for such taxes paid
19during the period beginning July 1, 2003 and ending on August
2016, 2013 (the effective date of Public Act 98-456).
21    (13) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (14) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

 

 

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1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (14) is exempt from the
3provisions of Section 3-75, and the exemption provided for
4under this item (14) applies for all periods beginning May 30,
51995, but no claim for credit or refund is allowed on or after
6January 1, 2008 (the effective date of Public Act 95-88) for
7such taxes paid during the period beginning May 30, 2000 and
8ending on January 1, 2008 (the effective date of Public Act
995-88).
10    (15) 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 Use Tax Act, as the case
22may be, based on the fair market value of the property at the
23time the non-qualifying use occurs. No lessor shall collect or
24attempt to collect an amount (however designated) that
25purports to reimburse that lessor for the tax imposed by this
26Act or the Use Tax Act, as the case may be, if the tax has not

 

 

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

 

 

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

 

 

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1provisions of Section 3-75.
2    (20) A motor vehicle, as that term is defined in Section
31-146 of the Illinois Vehicle Code, that is donated to a
4corporation, limited liability company, society, association,
5foundation, or institution that is determined by the
6Department to be organized and operated exclusively for
7educational purposes. For purposes of this exemption, "a
8corporation, limited liability company, society, association,
9foundation, or institution organized and operated exclusively
10for educational purposes" means all tax-supported public
11schools, private schools that offer systematic instruction in
12useful branches of learning by methods common to public
13schools and that compare favorably in their scope and
14intensity with the course of study presented in tax-supported
15schools, and vocational or technical schools or institutes
16organized and operated exclusively to provide a course of
17study of not less than 6 weeks duration and designed to prepare
18individuals to follow a trade or to pursue a manual,
19technical, mechanical, industrial, business, or commercial
20occupation.
21    (21) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

 

 

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1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 3-75.
9    (22) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and
12other items, and replacement parts for these machines.
13Beginning January 1, 2002 and through June 30, 2003, machines
14and parts for machines used in commercial, coin-operated
15amusement and vending business if a use or occupation tax is
16paid on the gross receipts derived from the use of the
17commercial, coin-operated amusement and vending machines. This
18paragraph is exempt from the provisions of Section 3-75.
19    (23) Beginning August 23, 2001 and through June 30, 2016,
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages,
22soft drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, when purchased for use by a person receiving medical

 

 

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

 

 

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

 

 

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1    (26) Beginning January 1, 2008, tangible personal property
2used in the construction or maintenance of a community water
3supply, as defined under Section 3.145 of the Environmental
4Protection Act, that is operated by a not-for-profit
5corporation that holds a valid water supply permit issued
6under Title IV of the Environmental Protection Act. This
7paragraph is exempt from the provisions of Section 3-75.
8    (27) Beginning January 1, 2010 and continuing through
9December 31, 2024, materials, parts, equipment, components,
10and furnishings incorporated into or upon an aircraft as part
11of the modification, refurbishment, completion, replacement,
12repair, or maintenance of the aircraft. This exemption
13includes consumable supplies used in the modification,
14refurbishment, completion, replacement, repair, and
15maintenance of aircraft, but excludes any materials, parts,
16equipment, components, and consumable supplies used in the
17modification, replacement, repair, and maintenance of aircraft
18engines or power plants, whether such engines or power plants
19are installed or uninstalled upon any such aircraft.
20"Consumable supplies" include, but are not limited to,
21adhesive, tape, sandpaper, general purpose lubricants,
22cleaning solution, latex gloves, and protective films. This
23exemption applies only to the use of qualifying tangible
24personal property transferred incident to the modification,
25refurbishment, completion, replacement, repair, or maintenance
26of aircraft by persons who (i) hold an Air Agency Certificate

 

 

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1and are empowered to operate an approved repair station by the
2Federal Aviation Administration, (ii) have a Class IV Rating,
3and (iii) conduct operations in accordance with Part 145 of
4the Federal Aviation Regulations. The exemption does not
5include aircraft operated by a commercial air carrier
6providing scheduled passenger air service pursuant to
7authority issued under Part 121 or Part 129 of the Federal
8Aviation Regulations. The changes made to this paragraph (27)
9by Public Act 98-534 are declarative of existing law. It is the
10intent of the General Assembly that the exemption under this
11paragraph (27) applies continuously from January 1, 2010
12through December 31, 2024; however, no claim for credit or
13refund is allowed for taxes paid as a result of the
14disallowance of this exemption on or after January 1, 2015 and
15prior to February 5, 2020 (the effective date of Public Act
16101-629) this amendatory Act of the 101st General Assembly.
17    (28) Tangible personal property purchased by a
18public-facilities corporation, as described in Section
1911-65-10 of the Illinois Municipal Code, for purposes of
20constructing or furnishing a municipal convention hall, but
21only if the legal title to the municipal convention hall is
22transferred to the municipality without any further
23consideration by or on behalf of the municipality at the time
24of the completion of the municipal convention hall or upon the
25retirement or redemption of any bonds or other debt
26instruments issued by the public-facilities corporation in

 

 

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1connection with the development of the municipal convention
2hall. This exemption includes existing public-facilities
3corporations as provided in Section 11-65-25 of the Illinois
4Municipal Code. This paragraph is exempt from the provisions
5of Section 3-75.
6    (29) Beginning January 1, 2017 and through December 31,
72026, menstrual pads, tampons, and menstrual cups.
8    (30) Tangible personal property transferred to a purchaser
9who is exempt from the tax imposed by this Act by operation of
10federal law. This paragraph is exempt from the provisions of
11Section 3-75.
12    (31) Qualified tangible personal property used in the
13construction or operation of a data center that has been
14granted a certificate of exemption by the Department of
15Commerce and Economic Opportunity, whether that tangible
16personal property is purchased by the owner, operator, or
17tenant of the data center or by a contractor or subcontractor
18of the owner, operator, or tenant. Data centers that would
19have qualified for a certificate of exemption prior to January
201, 2020 had Public Act 101-31 this amendatory Act of the 101st
21General Assembly been in effect, may apply for and obtain an
22exemption for subsequent purchases of computer equipment or
23enabling software purchased or leased to upgrade, supplement,
24or replace computer equipment or enabling software purchased
25or 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 (31) 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 (31):
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 (31) is exempt from the provisions of Section
133-75.
14    (32) Beginning July 1, 2022, breast pumps, breast pump
15collection and storage supplies, and breast pump kits. This
16item (32) is exempt from the provisions of Section 3-75. As
17used in this item (32):
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    (33) (32) Tangible personal property sold by or on behalf
5of the State Treasurer pursuant to the Revised Uniform
6Unclaimed Property Act. This item (33) (32) is exempt from the
7provisions of Section 3-75.
8    (34) Tangible personal property for which a certificate of
9exemption has been issued under Section 2505-810 of the
10Department of Revenue Law of the Civil Administrative Code of
11Illinois. This paragraph is exempt from the provisions of
12Section 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 20. 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. This item (7) is exempt from the
24provisions of Section 3-55.
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, to the extent that the proceeds of the
19service charge are in fact turned over as tips or as a
20substitute for tips to the employees who participate directly
21in preparing, serving, hosting or cleaning up the food or
22beverage function with respect to which the service charge is
23imposed.
24    (10) Until July 1, 2003, oil field exploration, drilling,
25and production equipment, including (i) rigs and parts of
26rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)

 

 

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1pipe and tubular goods, including casing and drill strings,
2(iii) pumps and pump-jack units, (iv) storage tanks and flow
3lines, (v) any individual replacement part for oil field
4exploration, drilling, and production equipment, and (vi)
5machinery and equipment purchased for lease; but excluding
6motor vehicles required to be registered under the Illinois
7Vehicle Code.
8    (11) Photoprocessing machinery and equipment, including
9repair and replacement parts, both new and used, including
10that manufactured on special order, certified by the purchaser
11to be used primarily for photoprocessing, and including
12photoprocessing machinery and equipment purchased for lease.
13    (12) Until July 1, 2028, coal and aggregate exploration,
14mining, off-highway hauling, processing, maintenance, and
15reclamation equipment, including replacement parts and
16equipment, and including equipment purchased for lease, but
17excluding motor vehicles required to be registered under the
18Illinois Vehicle Code. The changes made to this Section by
19Public Act 97-767 apply on and after July 1, 2003, but no claim
20for credit or refund is allowed on or after August 16, 2013
21(the effective date of Public Act 98-456) for such taxes paid
22during the period beginning July 1, 2003 and ending on August
2316, 2013 (the effective date of Public Act 98-456).
24    (13) Beginning January 1, 1992 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 non-prescription 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    (14) Semen used for artificial insemination of livestock
12for direct agricultural production.
13    (15) Horses, or interests in horses, registered with and
14meeting the requirements of any of the Arabian Horse Club
15Registry of America, Appaloosa Horse Club, American Quarter
16Horse Association, United States Trotting Association, or
17Jockey Club, as appropriate, used for purposes of breeding or
18racing for prizes. This item (15) is exempt from the
19provisions of Section 3-55, and the exemption provided for
20under this item (15) applies for all periods beginning May 30,
211995, but no claim for credit or refund is allowed on or after
22January 1, 2008 (the effective date of Public Act 95-88) for
23such taxes paid during the period beginning May 30, 2000 and
24ending on January 1, 2008 (the effective date of Public Act
2595-88).
26    (16) Computers and communications equipment utilized for

 

 

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

 

 

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1the performance of infrastructure repairs in this State,
2including but not limited to municipal roads and streets,
3access roads, bridges, sidewalks, waste disposal systems,
4water and sewer line extensions, water distribution and
5purification facilities, storm water drainage and retention
6facilities, and sewage treatment facilities, resulting from a
7State or federally declared disaster in Illinois or bordering
8Illinois when such repairs are initiated on facilities located
9in the declared disaster area within 6 months after the
10disaster.
11    (20) Beginning July 1, 1999, game or game birds sold at a
12"game breeding and hunting preserve area" as that term is used
13in the Wildlife Code. This paragraph is exempt from the
14provisions of Section 3-55.
15    (21) A motor vehicle, as that term is defined in Section
161-146 of the Illinois Vehicle Code, that is donated to a
17corporation, limited liability company, society, association,
18foundation, or institution that is determined by the
19Department to be organized and operated exclusively for
20educational purposes. For purposes of this exemption, "a
21corporation, limited liability company, society, association,
22foundation, or institution organized and operated exclusively
23for educational purposes" means all tax-supported public
24schools, private schools that offer systematic instruction in
25useful branches of learning by methods common to public
26schools and that compare favorably in their scope and

 

 

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1intensity with the course of study presented in tax-supported
2schools, and vocational or technical schools or institutes
3organized and operated exclusively to provide a course of
4study of not less than 6 weeks duration and designed to prepare
5individuals to follow a trade or to pursue a manual,
6technical, mechanical, industrial, business, or commercial
7occupation.
8    (22) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-55.
22    (23) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and
25other items, and replacement parts for these machines.
26Beginning January 1, 2002 and through June 30, 2003, machines

 

 

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1and parts for machines used in commercial, coin-operated
2amusement and vending business if a use or occupation tax is
3paid on the gross receipts derived from the use of the
4commercial, coin-operated amusement and vending machines. This
5paragraph is exempt from the provisions of Section 3-55.
6    (24) Beginning on August 2, 2001 (the effective date of
7Public Act 92-227), computers and communications equipment
8utilized for any hospital purpose and equipment used in the
9diagnosis, analysis, or treatment of hospital patients sold to
10a lessor who leases the equipment, under a lease of one year or
11longer executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. This paragraph is exempt
15from the provisions of Section 3-55.
16    (25) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), personal property sold to a lessor who
18leases the property, under a lease of one year or longer
19executed or in effect at the time of the purchase, to a
20governmental body that has been issued an active tax exemption
21identification number by the Department under Section 1g of
22the Retailers' Occupation Tax Act. This paragraph is exempt
23from the provisions of Section 3-55.
24    (26) Beginning on January 1, 2002 and through June 30,
252016, tangible personal property purchased from an Illinois
26retailer by a taxpayer engaged in centralized purchasing

 

 

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

 

 

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1paragraph is exempt from the provisions of Section 3-55.
2    (28) Tangible personal property sold to a
3public-facilities corporation, as described in Section
411-65-10 of the Illinois Municipal Code, for purposes of
5constructing or furnishing a municipal convention hall, but
6only if the legal title to the municipal convention hall is
7transferred to the municipality without any further
8consideration by or on behalf of the municipality at the time
9of the completion of the municipal convention hall or upon the
10retirement or redemption of any bonds or other debt
11instruments issued by the public-facilities corporation in
12connection with the development of the municipal convention
13hall. This exemption includes existing public-facilities
14corporations as provided in Section 11-65-25 of the Illinois
15Municipal Code. This paragraph is exempt from the provisions
16of Section 3-55.
17    (29) Beginning January 1, 2010 and continuing through
18December 31, 2024, materials, parts, equipment, components,
19and furnishings incorporated into or upon an aircraft as part
20of the modification, refurbishment, completion, replacement,
21repair, or maintenance of the aircraft. This exemption
22includes consumable supplies used in the modification,
23refurbishment, completion, replacement, repair, and
24maintenance of aircraft, but excludes any materials, parts,
25equipment, components, and consumable supplies used in the
26modification, replacement, repair, and maintenance of aircraft

 

 

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1engines or power plants, whether such engines or power plants
2are installed or uninstalled upon any such aircraft.
3"Consumable supplies" include, but are not limited to,
4adhesive, tape, sandpaper, general purpose lubricants,
5cleaning solution, latex gloves, and protective films. This
6exemption applies only to the transfer of qualifying tangible
7personal property incident to the modification, refurbishment,
8completion, replacement, repair, or maintenance of an aircraft
9by persons who (i) hold an Air Agency Certificate and are
10empowered to operate an approved repair station by the Federal
11Aviation Administration, (ii) have a Class IV Rating, and
12(iii) conduct operations in accordance with Part 145 of the
13Federal Aviation Regulations. The exemption does not include
14aircraft operated by a commercial air carrier providing
15scheduled passenger air service pursuant to authority issued
16under Part 121 or Part 129 of the Federal Aviation
17Regulations. The changes made to this paragraph (29) by Public
18Act 98-534 are declarative of existing law. It is the intent of
19the General Assembly that the exemption under this paragraph
20(29) applies continuously from January 1, 2010 through
21December 31, 2024; however, no claim for credit or refund is
22allowed for taxes paid as a result of the disallowance of this
23exemption on or after January 1, 2015 and prior to February 5,
242020 (the effective date of Public Act 101-629) this
25amendatory Act of the 101st General Assembly.
26    (30) Beginning January 1, 2017 and through December 31,

 

 

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12026, menstrual pads, tampons, and menstrual cups.
2    (31) Tangible personal property transferred to a purchaser
3who is exempt from tax by operation of federal law. This
4paragraph is exempt from the provisions of Section 3-55.
5    (32) Qualified tangible personal property used in the
6construction or operation of a data center that has been
7granted a certificate of exemption by the Department of
8Commerce and Economic Opportunity, whether that tangible
9personal property is purchased by the owner, operator, or
10tenant of the data center or by a contractor or subcontractor
11of the owner, operator, or tenant. Data centers that would
12have qualified for a certificate of exemption prior to January
131, 2020 had Public Act 101-31 this amendatory Act of the 101st
14General Assembly been in effect, may apply for and obtain an
15exemption for subsequent purchases of computer equipment or
16enabling software purchased or leased to upgrade, supplement,
17or replace computer equipment or enabling software purchased
18or leased in the original investment that would have
19qualified.
20    The Department of Commerce and Economic Opportunity shall
21grant a certificate of exemption under this item (32) to
22qualified data centers as defined by Section 605-1025 of the
23Department of Commerce and Economic Opportunity Law of the
24Civil Administrative Code of Illinois.
25    For the purposes of this item (32):
26        "Data center" means a building or a series of

 

 

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

 

 

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1    the exemption allowed under this Section, the retailer
2    must obtain from the purchaser a copy of the certificate
3    of eligibility issued by the Department of Commerce and
4    Economic Opportunity.
5    This item (32) is exempt from the provisions of Section
63-55.
7    (33) Beginning July 1, 2022, breast pumps, breast pump
8collection and storage supplies, and breast pump kits. This
9item (33) is exempt from the provisions of Section 3-55. As
10used in this item (33):
11        "Breast pump" means an electrically controlled or
12    manually controlled pump device designed or marketed to be
13    used to express milk from a human breast during lactation,
14    including the pump device and any battery, AC adapter, or
15    other power supply unit that is used to power the pump
16    device and is packaged and sold with the pump device at the
17    time of sale.
18        "Breast pump collection and storage supplies" means
19    items of tangible personal property designed or marketed
20    to be used in conjunction with a breast pump to collect
21    milk expressed from a human breast and to store collected
22    milk until it is ready for consumption.
23        "Breast pump collection and storage supplies"
24    includes, but is not limited to: breast shields and breast
25    shield connectors; breast pump tubes and tubing adapters;
26    breast pump valves and membranes; backflow protectors and

 

 

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1    backflow protector adaptors; bottles and bottle caps
2    specific to the operation of the breast pump; and breast
3    milk storage bags.
4        "Breast pump collection and storage supplies" does not
5    include: (1) bottles and bottle caps not specific to the
6    operation of the breast pump; (2) breast pump travel bags
7    and other similar carrying accessories, including ice
8    packs, labels, and other similar products; (3) breast pump
9    cleaning supplies; (4) nursing bras, bra pads, breast
10    shells, and other similar products; and (5) creams,
11    ointments, and other similar products that relieve
12    breastfeeding-related symptoms or conditions of the
13    breasts or nipples, unless sold as part of a breast pump
14    kit that is pre-packaged by the breast pump manufacturer
15    or distributor.
16        "Breast pump kit" means a kit that: (1) contains no
17    more than a breast pump, breast pump collection and
18    storage supplies, a rechargeable battery for operating the
19    breast pump, a breastmilk cooler, bottle stands, ice
20    packs, and a breast pump carrying case; and (2) is
21    pre-packaged as a breast pump kit by the breast pump
22    manufacturer or distributor.
23    (34) (33) Tangible personal property sold by or on behalf
24of the State Treasurer pursuant to the Revised Uniform
25Unclaimed Property Act. This item (34) (33) is exempt from the
26provisions of Section 3-55.

 

 

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1    (35) Tangible personal property for which a certificate of
2exemption has been issued under Section 2505-810 of the
3Department of Revenue Law of the Civil Administrative Code of
4Illinois. This paragraph is exempt from the provisions of
5Section 3-55.
6(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
7101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
870, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
975-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
10    Section 25. The Retailers' Occupation Tax Act is amended
11by changing Section 2-5 as follows:
 
12    (35 ILCS 120/2-5)
13    Sec. 2-5. Exemptions. Gross receipts from proceeds from
14the sale of the following tangible personal property are
15exempt from the tax imposed by this Act:
16        (1) Farm chemicals.
17        (2) Farm machinery and equipment, both new and used,
18    including that manufactured on special order, certified by
19    the purchaser to be used primarily for production
20    agriculture or State or federal agricultural programs,
21    including individual replacement parts for the machinery
22    and equipment, including machinery and equipment purchased
23    for lease, and including implements of husbandry defined
24    in Section 1-130 of the Illinois Vehicle Code, farm

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    drill strings, (iii) pumps and pump-jack units, (iv)
2    storage tanks and flow lines, (v) any individual
3    replacement part for oil field exploration, drilling, and
4    production equipment, and (vi) machinery and equipment
5    purchased for lease; but excluding motor vehicles required
6    to be registered under the Illinois Vehicle Code.
7        (20) Photoprocessing machinery and equipment,
8    including repair and replacement parts, both new and used,
9    including that manufactured on special order, certified by
10    the purchaser to be used primarily for photoprocessing,
11    and including photoprocessing machinery and equipment
12    purchased for lease.
13        (21) Until July 1, 2028, coal and aggregate
14    exploration, mining, off-highway hauling, processing,
15    maintenance, and reclamation equipment, including
16    replacement parts and equipment, and including equipment
17    purchased for lease, but excluding motor vehicles required
18    to be registered under the Illinois Vehicle Code. The
19    changes made to this Section by Public Act 97-767 apply on
20    and after July 1, 2003, but no claim for credit or refund
21    is allowed on or after August 16, 2013 (the effective date
22    of Public Act 98-456) for such taxes paid during the
23    period beginning July 1, 2003 and ending on August 16,
24    2013 (the effective date of Public Act 98-456).
25        (22) Until June 30, 2013, fuel and petroleum products
26    sold to or used by an air carrier, certified by the carrier

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    disaster in Illinois or bordering Illinois when such
2    repairs are initiated on facilities located in the
3    declared disaster area within 6 months after the disaster.
4        (32) Beginning July 1, 1999, game or game birds sold
5    at a "game breeding and hunting preserve area" as that
6    term is used in the Wildlife Code. This paragraph is
7    exempt from the provisions of Section 2-70.
8        (33) A motor vehicle, as that term is defined in
9    Section 1-146 of the Illinois Vehicle Code, that is
10    donated to a corporation, limited liability company,
11    society, association, foundation, or institution that is
12    determined by the Department to be organized and operated
13    exclusively for educational purposes. For purposes of this
14    exemption, "a corporation, limited liability company,
15    society, association, foundation, or institution organized
16    and operated exclusively for educational purposes" means
17    all tax-supported public schools, private schools that
18    offer systematic instruction in useful branches of
19    learning by methods common to public schools and that
20    compare favorably in their scope and intensity with the
21    course of study presented in tax-supported schools, and
22    vocational or technical schools or institutes organized
23    and operated exclusively to provide a course of study of
24    not less than 6 weeks duration and designed to prepare
25    individuals to follow a trade or to pursue a manual,
26    technical, mechanical, industrial, business, or commercial

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    sandpaper, general purpose lubricants, cleaning solution,
2    latex gloves, and protective films. This exemption applies
3    only to the sale of qualifying tangible personal property
4    to persons who modify, refurbish, complete, replace, or
5    maintain an aircraft and who (i) hold an Air Agency
6    Certificate and are empowered to operate an approved
7    repair station by the Federal Aviation Administration,
8    (ii) have a Class IV Rating, and (iii) conduct operations
9    in accordance with Part 145 of the Federal Aviation
10    Regulations. The exemption does not include aircraft
11    operated by a commercial air carrier providing scheduled
12    passenger air service pursuant to authority issued under
13    Part 121 or Part 129 of the Federal Aviation Regulations.
14    The changes made to this paragraph (40) by Public Act
15    98-534 are declarative of existing law. It is the intent
16    of the General Assembly that the exemption under this
17    paragraph (40) applies continuously from January 1, 2010
18    through December 31, 2024; however, no claim for credit or
19    refund is allowed for taxes paid as a result of the
20    disallowance of this exemption on or after January 1, 2015
21    and prior to February 5, 2020 (the effective date of
22    Public Act 101-629) this amendatory Act of the 101st
23    General Assembly.
24        (41) Tangible personal property sold to a
25    public-facilities corporation, as described in Section
26    11-65-10 of the Illinois Municipal Code, for purposes of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    or distributor.
2        "Breast pump kit" means a kit that: (1) contains no
3    more than a breast pump, breast pump collection and
4    storage supplies, a rechargeable battery for operating the
5    breast pump, a breastmilk cooler, bottle stands, ice
6    packs, and a breast pump carrying case; and (2) is
7    pre-packaged as a breast pump kit by the breast pump
8    manufacturer or distributor.
9        (47) (46) Tangible personal property sold by or on
10    behalf of the State Treasurer pursuant to the Revised
11    Uniform Unclaimed Property Act. This item (47) (46) is
12    exempt from the provisions of Section 2-70.
13        (48) Tangible personal property for which a
14    certificate of exemption has been issued under Section
15    2505-810 of the Department of Revenue Law of the Civil
16    Administrative Code of Illinois. This paragraph is exempt
17    from the provisions of Section 2-70.
18(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
19101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
208-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
21102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
22eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
23    Section 30. The Counties Code is amended by adding Section
245-1188 as follows:
 

 

 

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1    (55 ILCS 5/5-1188 new)
2    Sec. 5-1188. Exemption for materials, equipment, or
3supplies of a bid. Tangible personal property for which a
4certificate of exemption has been issued under Section
52505-810 of the Department of Revenue Law of the Civil
6Administrative Code of Illinois is exempt from any use or
7occupation tax imposed by a county under this Code.
 
8    Section 35. The Illinois Municipal Code is amended by
9adding Section 8-1-19 as follows:
 
10    (65 ILCS 5/8-1-19 new)
11    Sec. 8-1-19. Exemption for materials, equipment, or
12supplies of a bid. Tangible personal property for which a
13certificate of exemption has been issued under Section
142505-810 of the Department of Revenue Law of the Civil
15Administrative Code of Illinois is exempt from any use or
16occupation tax imposed by a municipality under this Code.
 
17    Section 40. The Civic Center Code is amended by adding
18Section 245-13 as follows:
 
19    (70 ILCS 200/245-13 new)
20    Sec. 245-13. Exemption for materials, equipment, or
21supplies of a bid. Tangible personal property for which a
22certificate of exemption has been issued under Section

 

 

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12505-810 of the Department of Revenue Law of the Civil
2Administrative Code of Illinois is exempt from any use or
3occupation tax imposed under this Article.
 
4    Section 45. The Metropolitan Pier and Exposition Authority
5Act is amended by adding Section 13.4 as follows:
 
6    (70 ILCS 210/13.4 new)
7    Sec. 13.4. Exemption for materials, equipment, or supplies
8of a bid. Tangible personal property for which a certificate
9of exemption has been issued under Section 2505-810 of the
10Department of Revenue Law of the Civil Administrative Code of
11Illinois is exempt from any use or occupation tax imposed
12under this Act.
 
13    Section 50. The Flood Prevention District Act is amended
14by adding Section 27 as follows:
 
15    (70 ILCS 750/27 new)
16    Sec. 27. Exemption for materials, equipment, or supplies
17of a bid. Tangible personal property for which a certificate
18of exemption has been issued under Section 2505-810 of the
19Department of Revenue Law of the Civil Administrative Code of
20Illinois is exempt from any use or occupation tax imposed
21under this Act.
 

 

 

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1    Section 55. The Metro-East Park and Recreation District
2Act is amended by adding Section 32 as follows:
 
3    (70 ILCS 1605/32 new)
4    Sec. 32. Exemption for materials, equipment, or supplies
5of a bid. Tangible personal property for which a certificate
6of exemption has been issued under Section 2505-810 of the
7Department of Revenue Law of the Civil Administrative Code of
8Illinois is exempt from any use or occupation tax imposed
9under this Act.
 
10    Section 60. The Local Mass Transit District Act is amended
11by adding Section 5.7 as follows:
 
12    (70 ILCS 3610/5.7 new)
13    Sec. 5.7. Exemption for materials, equipment, or supplies
14of a bid. Tangible personal property for which a certificate
15of exemption has been issued under Section 2505-810 of the
16Department of Revenue Law of the Civil Administrative Code of
17Illinois is exempt from any use or occupation tax imposed
18under this Act.
 
19    Section 65. The Regional Transportation Authority Act is
20amended by adding Section 4.17 as follows:
 
21    (70 ILCS 3615/4.17 new)

 

 

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1    Sec. 4.17. Exemption for materials, equipment, or supplies
2of a bid. Tangible personal property for which a certificate
3of exemption has been issued under Section 2505-810 of the
4Department of Revenue Law of the Civil Administrative Code of
5Illinois is exempt from any use or occupation tax imposed
6under this Act.
 
7    Section 70. The Water Commission Act of 1985 is amended by
8adding Section 4.5 as follows:
 
9    (70 ILCS 3720/4.5 new)
10    Sec. 4.5. Exemption for materials, equipment, or supplies
11of a bid. Tangible personal property for which a certificate
12of exemption has been issued under Section 2505-810 of the
13Department of Revenue Law of the Civil Administrative Code of
14Illinois is exempt from any use or occupation tax imposed
15under this Act.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 2505/2505-810 new
4    35 ILCS 105/3-5
5    35 ILCS 110/3-5
6    35 ILCS 115/3-5
7    35 ILCS 120/2-5
8    55 ILCS 5/5-1188 new
9    65 ILCS 5/8-1-19 new
10    70 ILCS 200/245-13 new
11    70 ILCS 210/13.4 new
12    70 ILCS 750/27 new
13    70 ILCS 1605/32 new
14    70 ILCS 3610/5.7 new
15    70 ILCS 3615/4.17 new
16    70 ILCS 3720/4.5 new