Rep. Curtis J. Tarver, II

Filed: 5/19/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1963

2    AMENDMENT NO. ______. Amend Senate Bill 1963 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 5. AIRCRAFT ENGINES

 
5    Section 5-5. The Use Tax Act is amended by changing
6Section 3-5 as follows:
 
7    (35 ILCS 105/3-5)
8    Sec. 3-5. Exemptions. Use of the following tangible
9personal property is exempt from the tax imposed by this Act:
10    (1) Personal property purchased from a corporation,
11society, association, foundation, institution, or
12organization, other than a limited liability company, that is
13organized and operated as a not-for-profit service enterprise
14for the benefit of persons 65 years of age or older if the
15personal property was not purchased by the enterprise for the

 

 

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

 

 

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1persons 55 years of age or older. A limited liability company
2may qualify for the exemption under this paragraph only if the
3limited liability company is organized and operated
4exclusively for educational purposes. On and after July 1,
51987, however, no entity otherwise eligible for this exemption
6shall make tax-free purchases unless it has an active
7exemption identification number issued by the Department.
8    (5) Until July 1, 2003, a passenger car that is a
9replacement vehicle to the extent that the purchase price of
10the car is subject to the Replacement Vehicle Tax.
11    (6) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order,
15certified by the purchaser to be used primarily for graphic
16arts production, and including machinery and equipment
17purchased for lease. Equipment includes chemicals or chemicals
18acting as catalysts but only if the chemicals or chemicals
19acting as catalysts effect a direct and immediate change upon
20a graphic arts product. Beginning on July 1, 2017, graphic
21arts machinery and equipment is included in the manufacturing
22and assembling machinery and equipment exemption under
23paragraph (18).
24    (7) Farm chemicals.
25    (8) Legal tender, currency, medallions, or gold or silver
26coinage issued by the State of Illinois, the government of the

 

 

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

 

 

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

 

 

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

 

 

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1    (15) Photoprocessing machinery and equipment, including
2repair and replacement parts, both new and used, including
3that manufactured on special order, certified by the purchaser
4to be used primarily for photoprocessing, and including
5photoprocessing machinery and equipment purchased for lease.
6    (16) Until July 1, 2028, coal and aggregate exploration,
7mining, off-highway hauling, processing, maintenance, and
8reclamation equipment, including replacement parts and
9equipment, and including equipment purchased for lease, but
10excluding motor vehicles required to be registered under the
11Illinois Vehicle Code. The changes made to this Section by
12Public Act 97-767 apply on and after July 1, 2003, but no claim
13for credit or refund is allowed on or after August 16, 2013
14(the effective date of Public Act 98-456) for such taxes paid
15during the period beginning July 1, 2003 and ending on August
1616, 2013 (the effective date of Public Act 98-456).
17    (17) Until July 1, 2003, distillation machinery and
18equipment, sold as a unit or kit, assembled or installed by the
19retailer, certified by the user to be used only for the
20production of ethyl alcohol that will be used for consumption
21as motor fuel or as a component of motor fuel for the personal
22use of the user, and not subject to sale or resale.
23    (18) Manufacturing and assembling machinery and equipment
24used primarily in the process of manufacturing or assembling
25tangible personal property for wholesale or retail sale or
26lease, whether that sale or lease is made directly by the

 

 

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1manufacturer or by some other person, whether the materials
2used in the process are owned by the manufacturer or some other
3person, or whether that sale or lease is made apart from or as
4an incident to the seller's engaging in the service occupation
5of producing machines, tools, dies, jigs, patterns, gauges, or
6other similar items of no commercial value on special order
7for a particular purchaser. The exemption provided by this
8paragraph (18) includes production related tangible personal
9property, as defined in Section 3-50, purchased on or after
10July 1, 2019. The exemption provided by this paragraph (18)
11does not include machinery and equipment used in (i) the
12generation of electricity for wholesale or retail sale; (ii)
13the generation or treatment of natural or artificial gas for
14wholesale or retail sale that is delivered to customers
15through pipes, pipelines, or mains; or (iii) the treatment of
16water for wholesale or retail sale that is delivered to
17customers through pipes, pipelines, or mains. The provisions
18of Public Act 98-583 are declaratory of existing law as to the
19meaning and scope of this exemption. Beginning on July 1,
202017, the exemption provided by this paragraph (18) includes,
21but is not limited to, graphic arts machinery and equipment,
22as defined in paragraph (6) of this Section.
23    (19) Personal property delivered to a purchaser or
24purchaser's donee inside Illinois when the purchase order for
25that personal property was received by a florist located
26outside Illinois who has a florist located inside Illinois

 

 

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1deliver the personal property.
2    (20) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (21) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (21) is exempt from the
10provisions of Section 3-90, and the exemption provided for
11under this item (21) applies for all periods beginning May 30,
121995, but no claim for credit or refund is allowed on or after
13January 1, 2008 for such taxes paid during the period
14beginning May 30, 2000 and ending on January 1, 2008.
15    (22) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients purchased by a
18lessor who leases the equipment, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23the Retailers' Occupation Tax Act. If the equipment is leased
24in a manner that does not qualify for this exemption or is used
25in any other non-exempt manner, the lessor shall be liable for
26the tax imposed under this Act or the Service Use Tax Act, as

 

 

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

 

 

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

 

 

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1Illinois when such repairs are initiated on facilities located
2in the declared disaster area within 6 months after the
3disaster.
4    (26) Beginning July 1, 1999, game or game birds purchased
5at a "game breeding and hunting preserve area" as that term is
6used in the Wildlife Code. This paragraph is exempt from the
7provisions of Section 3-90.
8    (27) A motor vehicle, as that term is defined in Section
91-146 of the Illinois Vehicle Code, that is donated to a
10corporation, limited liability company, society, association,
11foundation, or institution that is determined by the
12Department to be organized and operated exclusively for
13educational purposes. For purposes of this exemption, "a
14corporation, limited liability company, society, association,
15foundation, or institution organized and operated exclusively
16for educational purposes" means all tax-supported public
17schools, private schools that offer systematic instruction in
18useful branches of learning by methods common to public
19schools and that compare favorably in their scope and
20intensity with the course of study presented in tax-supported
21schools, and vocational or technical schools or institutes
22organized and operated exclusively to provide a course of
23study of not less than 6 weeks duration and designed to prepare
24individuals to follow a trade or to pursue a manual,
25technical, mechanical, industrial, business, or commercial
26occupation.

 

 

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1    (28) Beginning January 1, 2000, personal property,
2including food, purchased through fundraising events for the
3benefit of a public or private elementary or secondary school,
4a group of those schools, or one or more school districts if
5the events are sponsored by an entity recognized by the school
6district that consists primarily of volunteers and includes
7parents and teachers of the school children. This paragraph
8does not apply to fundraising events (i) for the benefit of
9private home instruction or (ii) for which the fundraising
10entity purchases the personal property sold at the events from
11another individual or entity that sold the property for the
12purpose of resale by the fundraising entity and that profits
13from the sale to the fundraising entity. This paragraph is
14exempt from the provisions of Section 3-90.
15    (29) Beginning January 1, 2000 and through December 31,
162001, new or used automatic vending machines that prepare and
17serve hot food and beverages, including coffee, soup, and
18other items, and replacement parts for these machines.
19Beginning January 1, 2002 and through June 30, 2003, machines
20and parts for machines used in commercial, coin-operated
21amusement and vending business if a use or occupation tax is
22paid on the gross receipts derived from the use of the
23commercial, coin-operated amusement and vending machines. This
24paragraph is exempt from the provisions of Section 3-90.
25    (30) Beginning January 1, 2001 and through June 30, 2016,
26food for human consumption that is to be consumed off the

 

 

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

 

 

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

 

 

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1has not been paid by the lessor. If a lessor improperly
2collects any such amount from the lessee, the lessee shall
3have a legal right to claim a refund of that amount from the
4lessor. If, however, that amount is not refunded to the lessee
5for any reason, the lessor is liable to pay that amount to the
6Department. This paragraph is exempt from the provisions of
7Section 3-90.
8    (33) On and after July 1, 2003 and through June 30, 2004,
9the use in this State of motor vehicles of the second division
10with a gross vehicle weight in excess of 8,000 pounds and that
11are subject to the commercial distribution fee imposed under
12Section 3-815.1 of the Illinois Vehicle Code. Beginning on
13July 1, 2004 and through June 30, 2005, the use in this State
14of motor vehicles of the second division: (i) with a gross
15vehicle weight rating in excess of 8,000 pounds; (ii) that are
16subject to the commercial distribution fee imposed under
17Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
18are primarily used for commercial purposes. Through June 30,
192005, this exemption applies to repair and replacement parts
20added after the initial purchase of such a motor vehicle if
21that motor vehicle is used in a manner that would qualify for
22the rolling stock exemption otherwise provided for in this
23Act. For purposes of this paragraph, the term "used for
24commercial purposes" means the transportation of persons or
25property in furtherance of any commercial or industrial
26enterprise, whether for-hire or not.

 

 

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1    (34) 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 3-90.
8    (35) Beginning January 1, 2010 and continuing through
9December 31, 2029 December 31, 2024, materials, parts,
10equipment, components, and furnishings incorporated into or
11upon an aircraft as part of the modification, refurbishment,
12completion, replacement, repair, or maintenance of the
13aircraft. This exemption includes consumable supplies used in
14the modification, refurbishment, completion, replacement,
15repair, and maintenance of aircraft. However, until January 1,
162024, this exemption , but excludes any materials, parts,
17equipment, components, and consumable supplies used in the
18modification, replacement, repair, and maintenance of aircraft
19engines or power plants, whether such engines or power plants
20are installed or uninstalled upon any such aircraft.
21"Consumable supplies" include, but are not limited to,
22adhesive, tape, sandpaper, general purpose lubricants,
23cleaning solution, latex gloves, and protective films.
24    Beginning January 1, 2010 and continuing through December
2531, 2023, this This exemption applies only to the use of
26qualifying tangible personal property by persons who modify,

 

 

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1refurbish, complete, repair, replace, or maintain aircraft and
2who (i) hold an Air Agency Certificate and are empowered to
3operate an approved repair station by the Federal Aviation
4Administration, (ii) have a Class IV Rating, and (iii) conduct
5operations in accordance with Part 145 of the Federal Aviation
6Regulations. From January 1, 2024 through December 31, 2029,
7this exemption applies only to the use of qualifying tangible
8personal property by: (A) persons who modify, refurbish,
9complete, repair, replace, or maintain aircraft and who (i)
10hold an Air Agency Certificate and are empowered to operate an
11approved repair station by the Federal Aviation
12Administration, (ii) have a Class IV Rating, and (iii) conduct
13operations in accordance with Part 145 of the Federal Aviation
14Regulations; and (B) persons who engage in the modification,
15replacement, repair, and maintenance of aircraft engines or
16power plants without regard to whether or not those persons
17meet the qualifications of item (A).
18    The exemption does not include aircraft operated by a
19commercial air carrier providing scheduled passenger air
20service pursuant to authority issued under Part 121 or Part
21129 of the Federal Aviation Regulations. The changes made to
22this paragraph (35) by Public Act 98-534 are declarative of
23existing law. It is the intent of the General Assembly that the
24exemption under this paragraph (35) applies continuously from
25January 1, 2010 through December 31, 2024; however, no claim
26for credit or refund is allowed for taxes paid as a result of

 

 

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1the disallowance of this exemption on or after January 1, 2015
2and prior to February 5, 2020 (the effective date of Public Act
3101-629) this amendatory Act of the 101st General Assembly.
4    (36) Tangible personal property purchased by a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt
13instruments issued by the public-facilities corporation in
14connection with the development of the municipal convention
15hall. This exemption includes existing public-facilities
16corporations as provided in Section 11-65-25 of the Illinois
17Municipal Code. This paragraph is exempt from the provisions
18of Section 3-90.
19    (37) Beginning January 1, 2017 and through December 31,
202026, menstrual pads, tampons, and menstrual cups.
21    (38) Merchandise that is subject to the Rental Purchase
22Agreement Occupation and Use Tax. The purchaser must certify
23that the item is purchased to be rented subject to a rental
24purchase agreement, as defined in the Rental Purchase
25Agreement Act, and provide proof of registration under the
26Rental Purchase Agreement Occupation and Use Tax Act. This

 

 

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1paragraph is exempt from the provisions of Section 3-90.
2    (39) Tangible personal property purchased by a purchaser
3who is exempt from the tax imposed by this Act by operation of
4federal law. This paragraph is exempt from the provisions of
5Section 3-90.
6    (40) Qualified tangible personal property used in the
7construction or operation of a data center that has been
8granted a certificate of exemption by the Department of
9Commerce and Economic Opportunity, whether that tangible
10personal property is purchased by the owner, operator, or
11tenant of the data center or by a contractor or subcontractor
12of the owner, operator, or tenant. Data centers that would
13have qualified for a certificate of exemption prior to January
141, 2020 had Public Act 101-31 been in effect may apply for and
15obtain an exemption for subsequent purchases of computer
16equipment or enabling software purchased or leased to upgrade,
17supplement, or replace computer equipment or enabling software
18purchased or 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 (40) 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 (40):
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 (40) is exempt from the provisions of Section
63-90.
7    (41) Beginning July 1, 2022, breast pumps, breast pump
8collection and storage supplies, and breast pump kits. This
9item (41) is exempt from the provisions of Section 3-90. As
10used in this item (41):
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    (42) (41) Tangible personal property sold by or on behalf
24of the State Treasurer pursuant to the Revised Uniform
25Unclaimed Property Act. This item (42) (41) is exempt from the
26provisions of Section 3-90.

 

 

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1(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
2101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
36-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
4102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
5eff. 5-27-22; revised 8-1-22.)
 
6    Section 5-10. The Service Use Tax Act is amended by
7changing Section 3-5 as follows:
 
8    (35 ILCS 110/3-5)
9    Sec. 3-5. Exemptions. Use of the following tangible
10personal property is exempt from the tax imposed by this Act:
11    (1) Personal property purchased from a corporation,
12society, association, foundation, institution, or
13organization, other than a limited liability company, that is
14organized and operated as a not-for-profit service enterprise
15for the benefit of persons 65 years of age or older if the
16personal property was not purchased by the enterprise for the
17purpose of resale by the enterprise.
18    (2) Personal property purchased by a non-profit Illinois
19county fair association for use in conducting, operating, or
20promoting the county fair.
21    (3) Personal property purchased by a not-for-profit arts
22or cultural organization that establishes, by proof required
23by the Department by rule, that it has received an exemption
24under Section 501(c)(3) of the Internal Revenue Code and that

 

 

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1is organized and operated primarily for the presentation or
2support of arts or cultural programming, activities, or
3services. These organizations include, but are not limited to,
4music and dramatic arts organizations such as symphony
5orchestras and theatrical groups, arts and cultural service
6organizations, local arts councils, visual arts organizations,
7and media arts organizations. On and after July 1, 2001 (the
8effective date of Public Act 92-35), however, an entity
9otherwise eligible for this exemption shall not make tax-free
10purchases unless it has an active identification number issued
11by the Department.
12    (4) Legal tender, currency, medallions, or gold or silver
13coinage issued by the State of Illinois, the government of the
14United States of America, or the government of any foreign
15country, and bullion.
16    (5) Until July 1, 2003 and beginning again on September 1,
172004 through August 30, 2014, graphic arts machinery and
18equipment, including repair and replacement parts, both new
19and used, and including that manufactured on special order or
20purchased for lease, certified by the purchaser to be used
21primarily for graphic arts production. Equipment includes
22chemicals or chemicals acting as catalysts but only if the
23chemicals or chemicals acting as catalysts effect a direct and
24immediate change upon a graphic arts product. Beginning on
25July 1, 2017, graphic arts machinery and equipment is included
26in the manufacturing and assembling machinery and equipment

 

 

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

 

 

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

 

 

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

 

 

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1certified by the purchaser to be used primarily for
2photoprocessing, and including photoprocessing machinery and
3equipment purchased for lease.
4    (12) Until July 1, 2028, coal and aggregate exploration,
5mining, off-highway hauling, processing, maintenance, and
6reclamation equipment, including replacement parts and
7equipment, and including equipment purchased for lease, but
8excluding motor vehicles required to be registered under the
9Illinois Vehicle Code. The changes made to this Section by
10Public Act 97-767 apply on and after July 1, 2003, but no claim
11for credit or refund is allowed on or after August 16, 2013
12(the effective date of Public Act 98-456) for such taxes paid
13during the period beginning July 1, 2003 and ending on August
1416, 2013 (the effective date of Public Act 98-456).
15    (13) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (14) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (14) is exempt from the
23provisions of Section 3-75, and the exemption provided for
24under this item (14) applies for all periods beginning May 30,
251995, but no claim for credit or refund is allowed on or after
26January 1, 2008 (the effective date of Public Act 95-88) for

 

 

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1such taxes paid during the period beginning May 30, 2000 and
2ending on January 1, 2008 (the effective date of Public Act
395-88).
4    (15) 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 Use Tax Act, as the case
16may be, based on the fair market value of the property at the
17time the non-qualifying use occurs. No lessor shall collect or
18attempt to collect an amount (however designated) that
19purports to reimburse that lessor for the tax imposed by this
20Act or the Use Tax Act, as the case may be, if the tax has not
21been paid by the lessor. If a lessor improperly collects any
22such amount from the lessee, the lessee shall have a legal
23right to claim a refund of that amount from the lessor. If,
24however, that amount is not refunded to the lessee for any
25reason, the lessor is liable to pay that amount to the
26Department.

 

 

10300SB1963ham002- 31 -LRB103 25648 HLH 62334 a

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

 

 

10300SB1963ham002- 32 -LRB103 25648 HLH 62334 a

1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (18) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in
8the performance of infrastructure repairs in this State,
9including but not limited to municipal roads and streets,
10access roads, bridges, sidewalks, waste disposal systems,
11water and sewer line extensions, water distribution and
12purification facilities, storm water drainage and retention
13facilities, and sewage treatment facilities, resulting from a
14State or federally declared disaster in Illinois or bordering
15Illinois when such repairs are initiated on facilities located
16in the declared disaster area within 6 months after the
17disaster.
18    (19) Beginning July 1, 1999, game or game birds purchased
19at a "game breeding and hunting preserve area" as that term is
20used in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-75.
22    (20) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the
26Department to be organized and operated exclusively for

 

 

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-75.
3    (22) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and
6other items, and replacement parts for these machines.
7Beginning January 1, 2002 and through June 30, 2003, machines
8and parts for machines used in commercial, coin-operated
9amusement and vending business if a use or occupation tax is
10paid on the gross receipts derived from the use of the
11commercial, coin-operated amusement and vending machines. This
12paragraph is exempt from the provisions of Section 3-75.
13    (23) Beginning August 23, 2001 and through June 30, 2016,
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages,
16soft drinks, and food that has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances, and insulin, urine testing
19materials, syringes, and needles used by diabetics, for human
20use, when purchased for use by a person receiving medical
21assistance under Article V of the Illinois Public Aid Code who
22resides in a licensed long-term care facility, as defined in
23the Nursing Home Care Act, or in a licensed facility as defined
24in the ID/DD Community Care Act, the MC/DD Act, or the
25Specialized Mental Health Rehabilitation Act of 2013.
26    (24) Beginning on August 2, 2001 (the effective date of

 

 

10300SB1963ham002- 35 -LRB103 25648 HLH 62334 a

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

 

 

10300SB1963ham002- 36 -LRB103 25648 HLH 62334 a

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

 

 

10300SB1963ham002- 37 -LRB103 25648 HLH 62334 a

1paragraph is exempt from the provisions of Section 3-75.
2    (27) Beginning January 1, 2010 and continuing through
3December 31, 2029 December 31, 2024, materials, parts,
4equipment, components, and furnishings incorporated into or
5upon an aircraft as part of the modification, refurbishment,
6completion, replacement, repair, or maintenance of the
7aircraft. This exemption includes consumable supplies used in
8the modification, refurbishment, completion, replacement,
9repair, and maintenance of aircraft. However, until January 1,
102024, this exemption , but excludes any materials, parts,
11equipment, components, and consumable supplies used in the
12modification, replacement, repair, and maintenance of aircraft
13engines or power plants, whether such engines or power plants
14are installed or uninstalled upon any such aircraft.
15"Consumable supplies" include, but are not limited to,
16adhesive, tape, sandpaper, general purpose lubricants,
17cleaning solution, latex gloves, and protective films.
18    Beginning January 1, 2010 and continuing through December
1931, 2023, this This exemption applies only to the use of
20qualifying tangible personal property transferred incident to
21the modification, refurbishment, completion, replacement,
22repair, or maintenance of aircraft by persons who (i) hold an
23Air Agency Certificate and are empowered to operate an
24approved repair station by the Federal Aviation
25Administration, (ii) have a Class IV Rating, and (iii) conduct
26operations in accordance with Part 145 of the Federal Aviation

 

 

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1Regulations. From January 1, 2024 through December 31, 2029,
2this exemption applies only to the use of qualifying tangible
3personal property by: (A) persons who modify, refurbish,
4complete, repair, replace, or maintain aircraft and who (i)
5hold an Air Agency Certificate and are empowered to operate an
6approved repair station by the Federal Aviation
7Administration, (ii) have a Class IV Rating, and (iii) conduct
8operations in accordance with Part 145 of the Federal Aviation
9Regulations; and (B) persons who engage in the modification,
10replacement, repair, and maintenance of aircraft engines or
11power plants without regard to whether or not those persons
12meet the qualifications of item (A).
13    The exemption does not include aircraft operated by a
14commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part
16129 of the Federal Aviation Regulations. The changes made to
17this paragraph (27) by Public Act 98-534 are declarative of
18existing law. It is the intent of the General Assembly that the
19exemption under this paragraph (27) applies continuously from
20January 1, 2010 through December 31, 2024; however, no claim
21for credit or refund is allowed for taxes paid as a result of
22the disallowance of this exemption on or after January 1, 2015
23and prior to February 5, 2020 (the effective date of Public Act
24101-629) this amendatory Act of the 101st General Assembly.
25    (28) Tangible personal property purchased by a
26public-facilities corporation, as described in Section

 

 

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111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt
8instruments issued by the public-facilities corporation in
9connection with the development of the municipal convention
10hall. This exemption includes existing public-facilities
11corporations as provided in Section 11-65-25 of the Illinois
12Municipal Code. This paragraph is exempt from the provisions
13of Section 3-75.
14    (29) Beginning January 1, 2017 and through December 31,
152026, menstrual pads, tampons, and menstrual cups.
16    (30) Tangible personal property transferred to a purchaser
17who is exempt from the tax imposed by this Act by operation of
18federal law. This paragraph is exempt from the provisions of
19Section 3-75.
20    (31) Qualified tangible personal property used in the
21construction or operation of a data center that has been
22granted a certificate of exemption by the Department of
23Commerce and Economic Opportunity, whether that tangible
24personal property is purchased by the owner, operator, or
25tenant of the data center or by a contractor or subcontractor
26of the owner, operator, or tenant. Data centers that would

 

 

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

 

 

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1    mechanical, electrical, or plumbing systems; battery
2    systems; cooling systems and towers; temperature control
3    systems; other cabling; and other data center
4    infrastructure equipment and systems necessary to operate
5    qualified tangible personal property, including fixtures;
6    and component parts of any of the foregoing, including
7    installation, maintenance, repair, refurbishment, and
8    replacement of qualified tangible personal property to
9    generate, transform, transmit, distribute, or manage
10    electricity necessary to operate qualified tangible
11    personal property; and all other tangible personal
12    property that is essential to the operations of a computer
13    data center. The term "qualified tangible personal
14    property" also includes building materials physically
15    incorporated in to the qualifying data center. To document
16    the exemption allowed under this Section, the retailer
17    must obtain from the purchaser a copy of the certificate
18    of eligibility issued by the Department of Commerce and
19    Economic Opportunity.
20    This item (31) is exempt from the provisions of Section
213-75.
22    (32) Beginning July 1, 2022, breast pumps, breast pump
23collection and storage supplies, and breast pump kits. This
24item (32) is exempt from the provisions of Section 3-75. As
25used in this item (32):
26        "Breast pump" means an electrically controlled or

 

 

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

 

 

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1    breastfeeding-related symptoms or conditions of the
2    breasts or nipples, unless sold as part of a breast pump
3    kit that is pre-packaged by the breast pump manufacturer
4    or distributor.
5        "Breast pump kit" means a kit that: (1) contains no
6    more than a breast pump, breast pump collection and
7    storage supplies, a rechargeable battery for operating the
8    breast pump, a breastmilk cooler, bottle stands, ice
9    packs, and a breast pump carrying case; and (2) is
10    pre-packaged as a breast pump kit by the breast pump
11    manufacturer or distributor.
12    (33) (32) Tangible personal property sold by or on behalf
13of the State Treasurer pursuant to the Revised Uniform
14Unclaimed Property Act. This item (33) (32) is exempt from the
15provisions of Section 3-75.
16(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
17101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1870, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1975-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
20    Section 5-15. The Service Occupation Tax Act is amended by
21changing Section 3-5 as follows:
 
22    (35 ILCS 115/3-5)
23    Sec. 3-5. Exemptions. The following tangible personal
24property is exempt from the tax imposed by this Act:

 

 

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

 

 

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1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4    (5) Until July 1, 2003 and beginning again on September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new
7and used, and including that manufactured on special order or
8purchased for lease, certified by the purchaser to be used
9primarily for graphic arts production. Equipment includes
10chemicals or chemicals acting as catalysts but only if the
11chemicals or chemicals acting as catalysts effect a direct and
12immediate change upon a graphic arts product. Beginning on
13July 1, 2017, graphic arts machinery and equipment is included
14in the manufacturing and assembling machinery and equipment
15exemption under Section 2 of this Act.
16    (6) Personal property sold by a teacher-sponsored student
17organization affiliated with an elementary or secondary school
18located in Illinois.
19    (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

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

 

 

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

 

 

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1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of
3rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
4pipe and tubular goods, including casing and drill strings,
5(iii) pumps and pump-jack units, (iv) storage tanks and flow
6lines, (v) any individual replacement part for oil field
7exploration, drilling, and production equipment, and (vi)
8machinery and equipment purchased for lease; but excluding
9motor vehicles required to be registered under the Illinois
10Vehicle Code.
11    (11) Photoprocessing machinery and equipment, including
12repair and replacement parts, both new and used, including
13that manufactured on special order, certified by the purchaser
14to be used primarily for photoprocessing, and including
15photoprocessing machinery and equipment purchased for lease.
16    (12) Until July 1, 2028, coal and aggregate exploration,
17mining, off-highway hauling, processing, maintenance, and
18reclamation equipment, including replacement parts and
19equipment, and including equipment purchased for lease, but
20excluding motor vehicles required to be registered under the
21Illinois Vehicle Code. The changes made to this Section by
22Public Act 97-767 apply on and after July 1, 2003, but no claim
23for credit or refund is allowed on or after August 16, 2013
24(the effective date of Public Act 98-456) for such taxes paid
25during the period beginning July 1, 2003 and ending on August
2616, 2013 (the effective date of Public Act 98-456).

 

 

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1    (13) Beginning January 1, 1992 and through June 30, 2016,
2food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages,
4soft drinks and food that has been prepared for immediate
5consumption) and prescription and non-prescription medicines,
6drugs, medical appliances, and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use, when purchased for use by a person receiving medical
9assistance under Article V of the Illinois Public Aid Code who
10resides in a licensed long-term care facility, as defined in
11the Nursing Home Care Act, or in a licensed facility as defined
12in the ID/DD Community Care Act, the MC/DD Act, or the
13Specialized Mental Health Rehabilitation Act of 2013.
14    (14) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (15) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (15) is exempt from the
22provisions of Section 3-55, and the exemption provided for
23under this item (15) applies for all periods beginning May 30,
241995, but no claim for credit or refund is allowed on or after
25January 1, 2008 (the effective date of Public Act 95-88) for
26such taxes paid during the period beginning May 30, 2000 and

 

 

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1ending on January 1, 2008 (the effective date of Public Act
295-88).
3    (16) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients sold to a lessor
6who leases the equipment, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act.
11    (17) Personal property sold to a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time of the purchase, to a governmental body that
14has been issued an active tax exemption identification number
15by the Department under Section 1g of the Retailers'
16Occupation Tax Act.
17    (18) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated
20for disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

 

 

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1    (19) 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 used in
4the performance of infrastructure repairs in this State,
5including but not limited to municipal roads and streets,
6access roads, bridges, sidewalks, waste disposal systems,
7water and sewer line extensions, water distribution and
8purification facilities, storm water drainage and retention
9facilities, and sewage treatment facilities, resulting from a
10State or federally declared disaster in Illinois or bordering
11Illinois when such repairs are initiated on facilities located
12in the declared disaster area within 6 months after the
13disaster.
14    (20) Beginning July 1, 1999, game or game birds sold at a
15"game breeding and hunting preserve area" as that term is used
16in the Wildlife Code. This paragraph is exempt from the
17provisions of Section 3-55.
18    (21) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the
22Department to be organized and operated exclusively for
23educational purposes. For purposes of this exemption, "a
24corporation, limited liability company, society, association,
25foundation, or institution organized and operated exclusively
26for educational purposes" means all tax-supported public

 

 

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1schools, private schools that offer systematic instruction in
2useful branches of learning by methods common to public
3schools and that compare favorably in their scope and
4intensity with the course of study presented in tax-supported
5schools, and vocational or technical schools or institutes
6organized and operated exclusively to provide a course of
7study of not less than 6 weeks duration and designed to prepare
8individuals to follow a trade or to pursue a manual,
9technical, mechanical, industrial, business, or commercial
10occupation.
11    (22) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-55.
25    (23) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

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

 

 

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1    (26) Beginning on January 1, 2002 and through June 30,
22016, tangible personal property purchased from an Illinois
3retailer by a taxpayer engaged in centralized purchasing
4activities in Illinois who will, upon receipt of the property
5in Illinois, temporarily store the property in Illinois (i)
6for the purpose of subsequently transporting it outside this
7State for use or consumption thereafter solely outside this
8State or (ii) for the purpose of being processed, fabricated,
9or manufactured into, attached to, or incorporated into other
10tangible personal property to be transported outside this
11State and thereafter used or consumed solely outside this
12State. The Director of Revenue shall, pursuant to rules
13adopted in accordance with the Illinois Administrative
14Procedure Act, issue a permit to any taxpayer in good standing
15with the Department who is eligible for the exemption under
16this paragraph (26). The permit issued under this paragraph
17(26) shall authorize the holder, to the extent and in the
18manner specified in the rules adopted under this Act, to
19purchase tangible personal property from a retailer exempt
20from the taxes imposed by this Act. Taxpayers shall maintain
21all necessary books and records to substantiate the use and
22consumption of all such tangible personal property outside of
23the State of Illinois.
24    (27) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued
3under Title IV of the Environmental Protection Act. This
4paragraph is exempt from the provisions of Section 3-55.
5    (28) Tangible personal property sold to 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 3-55.
20    (29) Beginning January 1, 2010 and continuing through
21December 31, 2029 December 31, 2024, materials, parts,
22equipment, components, and furnishings incorporated into or
23upon an aircraft as part of the modification, refurbishment,
24completion, replacement, repair, or maintenance of the
25aircraft. This exemption includes consumable supplies used in
26the modification, refurbishment, completion, replacement,

 

 

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1repair, and maintenance of aircraft. However, until January 1,
22024, this exemption , but excludes any materials, parts,
3equipment, components, and consumable supplies used in the
4modification, replacement, repair, and maintenance of aircraft
5engines or power plants, whether such engines or power plants
6are installed or uninstalled upon any such aircraft.
7"Consumable supplies" include, but are not limited to,
8adhesive, tape, sandpaper, general purpose lubricants,
9cleaning solution, latex gloves, and protective films.
10    Beginning January 1, 2010 and continuing through December
1131, 2023, this This exemption applies only to the transfer of
12qualifying tangible personal property incident to the
13modification, refurbishment, completion, replacement, repair,
14or maintenance of an aircraft by persons 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. From January 1, 2024
23through December 31, 2029, this exemption applies only to the
24use of qualifying tangible personal property by: (A) persons
25who modify, refurbish, complete, repair, replace, or maintain
26aircraft and who (i) hold an Air Agency Certificate and are

 

 

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1empowered to operate an approved repair station by the Federal
2Aviation Administration, (ii) have a Class IV Rating, and
3(iii) conduct operations in accordance with Part 145 of the
4Federal Aviation Regulations; and (B) persons who engage in
5the modification, replacement, repair, and maintenance of
6aircraft engines or power plants without regard to whether or
7not those persons meet the qualifications of item (A).
8    The changes made to this paragraph (29) by Public Act
998-534 are declarative of existing law. It is the intent of the
10General Assembly that the exemption under this paragraph (29)
11applies continuously from January 1, 2010 through December 31,
122024; however, no claim for credit or refund is allowed for
13taxes paid as a result of the disallowance of this exemption on
14or after January 1, 2015 and prior to February 5, 2020 (the
15effective date of Public Act 101-629) this amendatory Act of
16the 101st General Assembly.
17    (30) Beginning January 1, 2017 and through December 31,
182026, menstrual pads, tampons, and menstrual cups.
19    (31) Tangible personal property transferred to a purchaser
20who is exempt from tax by operation of federal law. This
21paragraph is exempt from the provisions of Section 3-55.
22    (32) Qualified tangible personal property used in the
23construction or operation of a data center that has been
24granted a certificate of exemption by the Department of
25Commerce and Economic Opportunity, whether that tangible
26personal property is purchased by the owner, operator, or

 

 

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1tenant of the data center or by a contractor or subcontractor
2of the owner, operator, or tenant. Data centers that would
3have qualified for a certificate of exemption prior to January
41, 2020 had Public Act 101-31 this amendatory Act of the 101st
5General Assembly been in effect, may apply for and obtain an
6exemption for subsequent purchases of computer equipment or
7enabling software purchased or leased to upgrade, supplement,
8or replace computer equipment or enabling software purchased
9or leased in the original investment that would have
10qualified.
11    The Department of Commerce and Economic Opportunity shall
12grant a certificate of exemption under this item (32) to
13qualified data centers as defined by Section 605-1025 of the
14Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16    For the purposes of this item (32):
17        "Data center" means a building or a series of
18    buildings rehabilitated or constructed to house working
19    servers in one physical location or multiple sites within
20    the State of Illinois.
21        "Qualified tangible personal property" means:
22    electrical systems and equipment; climate control and
23    chilling equipment and systems; mechanical systems and
24    equipment; monitoring and secure systems; emergency
25    generators; hardware; computers; servers; data storage
26    devices; network connectivity equipment; racks; cabinets;

 

 

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1    telecommunications cabling infrastructure; raised floor
2    systems; peripheral components or systems; software;
3    mechanical, electrical, or plumbing systems; battery
4    systems; cooling systems and towers; temperature control
5    systems; other cabling; and other data center
6    infrastructure equipment and systems necessary to operate
7    qualified tangible personal property, including fixtures;
8    and component parts of any of the foregoing, including
9    installation, maintenance, repair, refurbishment, and
10    replacement of qualified tangible personal property to
11    generate, transform, transmit, distribute, or manage
12    electricity necessary to operate qualified tangible
13    personal property; and all other tangible personal
14    property that is essential to the operations of a computer
15    data center. The term "qualified tangible personal
16    property" also includes building materials physically
17    incorporated in to the qualifying data center. To document
18    the exemption allowed under this Section, the retailer
19    must obtain from the purchaser a copy of the certificate
20    of eligibility issued by the Department of Commerce and
21    Economic Opportunity.
22    This item (32) is exempt from the provisions of Section
233-55.
24    (33) Beginning July 1, 2022, breast pumps, breast pump
25collection and storage supplies, and breast pump kits. This
26item (33) is exempt from the provisions of Section 3-55. As

 

 

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1used in this item (33):
2        "Breast pump" means an electrically controlled or
3    manually controlled pump device designed or marketed to be
4    used to express milk from a human breast during lactation,
5    including the pump device and any battery, AC adapter, or
6    other power supply unit that is used to power the pump
7    device and is packaged and sold with the pump device at the
8    time of sale.
9        "Breast pump collection and storage supplies" means
10    items of tangible personal property designed or marketed
11    to be used in conjunction with a breast pump to collect
12    milk expressed from a human breast and to store collected
13    milk until it is ready for consumption.
14        "Breast pump collection and storage supplies"
15    includes, but is not limited to: breast shields and breast
16    shield connectors; breast pump tubes and tubing adapters;
17    breast pump valves and membranes; backflow protectors and
18    backflow protector adaptors; bottles and bottle caps
19    specific to the operation of the breast pump; and breast
20    milk storage bags.
21        "Breast pump collection and storage supplies" does not
22    include: (1) bottles and bottle caps not specific to the
23    operation of the breast pump; (2) breast pump travel bags
24    and other similar carrying accessories, including ice
25    packs, labels, and other similar products; (3) breast pump
26    cleaning supplies; (4) nursing bras, bra pads, breast

 

 

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1    shells, and other similar products; and (5) creams,
2    ointments, and other similar products that relieve
3    breastfeeding-related symptoms or conditions of the
4    breasts or nipples, unless sold as part of a breast pump
5    kit that is pre-packaged by the breast pump manufacturer
6    or distributor.
7        "Breast pump kit" means a kit that: (1) contains no
8    more than a breast pump, breast pump collection and
9    storage supplies, a rechargeable battery for operating the
10    breast pump, a breastmilk cooler, bottle stands, ice
11    packs, and a breast pump carrying case; and (2) is
12    pre-packaged as a breast pump kit by the breast pump
13    manufacturer or distributor.
14    (34) (33) Tangible personal property sold by or on behalf
15of the State Treasurer pursuant to the Revised Uniform
16Unclaimed Property Act. This item (34) (33) is exempt from the
17provisions of Section 3-55.
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; 102-700, Article
2070, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2175-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
22    Section 5-20. The Retailers' Occupation Tax Act is amended
23by changing Section 2-5 as follows:
 
24    (35 ILCS 120/2-5)

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    years of age or older. A limited liability company may
2    qualify for the exemption under this paragraph only if the
3    limited liability company is organized and operated
4    exclusively for educational purposes. On and after July 1,
5    1987, however, no entity otherwise eligible for this
6    exemption shall make tax-free purchases unless it has an
7    active identification number issued by the Department.
8        (12) (Blank).
9        (12-5) On and after July 1, 2003 and through June 30,
10    2004, motor vehicles of the second division with a gross
11    vehicle weight in excess of 8,000 pounds that are subject
12    to the commercial distribution fee imposed under Section
13    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
14    2004 and through June 30, 2005, the use in this State of
15    motor vehicles of the second division: (i) with a gross
16    vehicle weight rating in excess of 8,000 pounds; (ii) that
17    are subject to the commercial distribution fee imposed
18    under Section 3-815.1 of the Illinois Vehicle Code; and
19    (iii) that are primarily used for commercial purposes.
20    Through June 30, 2005, this exemption applies to repair
21    and replacement parts added after the initial purchase of
22    such a motor vehicle if that motor vehicle is used in a
23    manner that would qualify for the rolling stock exemption
24    otherwise provided for in this Act. For purposes of this
25    paragraph, "used for commercial purposes" means the
26    transportation of persons or property in furtherance of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    distributed as if the tax were collected at the 6.25%
2    general rate imposed under this Act.
3        (25-7) Beginning on July 1, 2007, no tax is imposed
4    under this Act on the sale of an aircraft, as defined in
5    Section 3 of the Illinois Aeronautics Act, if all of the
6    following conditions are met:
7            (1) the aircraft leaves this State within 15 days
8        after the later of either the issuance of the final
9        billing for the sale of the aircraft, or the
10        authorized approval for return to service, completion
11        of the maintenance record entry, and completion of the
12        test flight and ground test for inspection, as
13        required by 14 CFR C.F.R. 91.407;
14            (2) the aircraft is not based or registered in
15        this State after the sale of the aircraft; and
16            (3) the seller retains in his or her books and
17        records and provides to the Department a signed and
18        dated certification from the purchaser, on a form
19        prescribed by the Department, certifying that the
20        requirements of this item (25-7) are met. The
21        certificate must also include the name and address of
22        the purchaser, the address of the location where the
23        aircraft is to be titled or registered, the address of
24        the primary physical location of the aircraft, and
25        other information that the Department may reasonably
26        require.

 

 

10300SB1963ham002- 74 -LRB103 25648 HLH 62334 a

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

 

 

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1    paid during the period beginning May 30, 2000 and ending
2    on January 1, 2008 (the effective date of Public Act
3    95-88).
4        (28) Computers and communications equipment utilized
5    for any hospital purpose and equipment used in the
6    diagnosis, analysis, or treatment of hospital patients
7    sold to a lessor who leases the equipment, under a lease of
8    one year or longer executed or in effect at the time of the
9    purchase, to a hospital that has been issued an active tax
10    exemption identification number by the Department under
11    Section 1g of this Act.
12        (29) Personal property sold to a lessor who leases the
13    property, under a lease of one year or longer executed or
14    in effect at the time of the purchase, to a governmental
15    body that has been issued an active tax exemption
16    identification number by the Department under Section 1g
17    of this Act.
18        (30) Beginning with taxable years ending on or after
19    December 31, 1995 and ending with taxable years ending on
20    or before December 31, 2004, personal property that is
21    donated for disaster relief to be used in a State or
22    federally declared disaster area in Illinois or bordering
23    Illinois by a manufacturer or retailer that is registered
24    in this State to a corporation, society, association,
25    foundation, or institution that has been issued a sales
26    tax exemption identification number by the Department that

 

 

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

 

 

10300SB1963ham002- 77 -LRB103 25648 HLH 62334 a

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

 

 

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

 

 

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1    Mental Health Rehabilitation Act of 2013.
2        (36) Beginning August 2, 2001, computers and
3    communications equipment utilized for any hospital purpose
4    and equipment used in the diagnosis, analysis, or
5    treatment of hospital patients sold to a lessor who leases
6    the equipment, under a lease of one year or longer
7    executed or in effect at the time of the purchase, to a
8    hospital that has been issued an active tax exemption
9    identification number by the Department under Section 1g
10    of this Act. This paragraph is exempt from the provisions
11    of Section 2-70.
12        (37) Beginning August 2, 2001, personal property sold
13    to a lessor who leases the property, under a lease of one
14    year or longer executed or in effect at the time of the
15    purchase, to a governmental body that has been issued an
16    active tax exemption identification number by the
17    Department under Section 1g of this Act. This paragraph is
18    exempt from the provisions of Section 2-70.
19        (38) Beginning on January 1, 2002 and through June 30,
20    2016, tangible personal property purchased from an
21    Illinois retailer by a taxpayer engaged in centralized
22    purchasing activities in Illinois who will, upon receipt
23    of the property in Illinois, temporarily store the
24    property in Illinois (i) for the purpose of subsequently
25    transporting it outside this State for use or consumption
26    thereafter solely outside this State or (ii) for the

 

 

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1    purpose of being processed, fabricated, or manufactured
2    into, attached to, or incorporated into other tangible
3    personal property to be transported outside this State and
4    thereafter used or consumed solely outside this State. The
5    Director of Revenue shall, pursuant to rules adopted in
6    accordance with the Illinois Administrative Procedure Act,
7    issue a permit to any taxpayer in good standing with the
8    Department who is eligible for the exemption under this
9    paragraph (38). The permit issued under this paragraph
10    (38) shall authorize the holder, to the extent and in the
11    manner specified in the rules adopted under this Act, to
12    purchase tangible personal property from a retailer exempt
13    from the taxes imposed by this Act. Taxpayers shall
14    maintain all necessary books and records to substantiate
15    the use and consumption of all such tangible personal
16    property outside of the State of Illinois.
17        (39) Beginning January 1, 2008, tangible personal
18    property used in the construction or maintenance of a
19    community water supply, as defined under Section 3.145 of
20    the Environmental Protection Act, that is operated by a
21    not-for-profit corporation that holds a valid water supply
22    permit issued under Title IV of the Environmental
23    Protection Act. This paragraph is exempt from the
24    provisions of Section 2-70.
25        (40) Beginning January 1, 2010 and continuing through
26    December 31, 2029 December 31, 2024, materials, parts,

 

 

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

 

 

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1    commercial air carrier providing scheduled passenger air
2    service pursuant to authority issued under Part 121 or
3    Part 129 of the Federal Aviation Regulations. From January
4    1, 2024 through December 31, 2029, this exemption applies
5    only to the use of qualifying tangible personal property
6    by: (A) persons who modify, refurbish, complete, repair,
7    replace, or maintain aircraft and who (i) hold an Air
8    Agency Certificate and are empowered to operate an
9    approved repair station by the Federal Aviation
10    Administration, (ii) have a Class IV Rating, and (iii)
11    conduct operations in accordance with Part 145 of the
12    Federal Aviation Regulations; and (B) persons who engage
13    in the modification, replacement, repair, and maintenance
14    of aircraft engines or power plants without regard to
15    whether or not those persons meet the qualifications of
16    item (A).
17        The changes made to this paragraph (40) by Public Act
18    98-534 are declarative of existing law. It is the intent
19    of the General Assembly that the exemption under this
20    paragraph (40) applies continuously from January 1, 2010
21    through December 31, 2024; however, no claim for credit or
22    refund is allowed for taxes paid as a result of the
23    disallowance of this exemption on or after January 1, 2015
24    and prior to February 5, 2020 (the effective date of
25    Public Act 101-629) this amendatory Act of the 101st
26    General Assembly.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 
22    Section 10-5. The Use Tax Act is amended by changing
23Sections 3-10, 3-40, and 3-44 and by adding Section 3-44.3 as
24follows:
 

 

 

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1    (35 ILCS 105/3-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4either the selling price or the fair market value, if any, of
5the tangible personal property. In all cases where property
6functionally used or consumed is the same as the property that
7was purchased at retail, then the tax is imposed on the selling
8price of the property. In all cases where property
9functionally used or consumed is a by-product or waste product
10that has been refined, manufactured, or produced from property
11purchased at retail, then the tax is imposed on the lower of
12the fair market value, if any, of the specific property so used
13in this State or on the selling price of the property purchased
14at retail. For purposes of this Section "fair market value"
15means the price at which property would change hands between a
16willing buyer and a willing seller, neither being under any
17compulsion to buy or sell and both having reasonable knowledge
18of the relevant facts. The fair market value shall be
19established by Illinois sales by the taxpayer of the same
20property as that functionally used or consumed, or if there
21are no such sales by the taxpayer, then comparable sales or
22purchases of property of like kind and character in Illinois.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the
25Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

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1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    Beginning on August 6, 2010 through August 15, 2010, and
3beginning again on August 5, 2022 through August 14, 2022,
4with respect to sales tax holiday items as defined in Section
53-6 of this Act, the tax is imposed at the rate of 1.25%.
6    With respect to gasohol, the tax imposed by this Act
7applies to (i) 70% of the proceeds of sales made on or after
8January 1, 1990, and before July 1, 2003, (ii) 80% of the
9proceeds of sales made on or after July 1, 2003 and on or
10before July 1, 2017, and (iii) 100% of the proceeds of sales
11made after July 1, 2017 and prior to January 1, 2024, (iv) 90%
12of the proceeds of sales made on or after January 1, 2024 and
13on or before December 31, 2028, and (v) 100% of the proceeds of
14sales made after December 31, 2028 thereafter. If, at any
15time, however, the tax under this Act on sales of gasohol is
16imposed at the rate of 1.25%, then the tax imposed by this Act
17applies to 100% of the proceeds of sales of gasohol made during
18that time.
19    With respect to mid-range ethanol blends, the tax imposed
20by this Act applies to (i) 80% of the proceeds of sales made on
21or after January 1, 2024 and on or before December 31, 2028 and
22(ii) 100% of the proceeds of sales made thereafter. If, at any
23time, however, the tax under this Act on sales of mid-range
24ethanol blends is imposed at the rate of 1.25%, then the tax
25imposed by this Act applies to 100% of the proceeds of sales of
26mid-range ethanol blends made during that time.

 

 

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1    With respect to majority blended ethanol fuel, the tax
2imposed by this Act does not apply to the proceeds of sales
3made on or after July 1, 2003 and on or before December 31,
42028 December 31, 2023 but applies to 100% of the proceeds of
5sales made thereafter.
6    With respect to biodiesel blends with no less than 1% and
7no more than 10% biodiesel, the tax imposed by this Act applies
8to (i) 80% of the proceeds of sales made on or after July 1,
92003 and on or before December 31, 2018 and (ii) 100% of the
10proceeds of sales made after December 31, 2018 and before
11January 1, 2024. On and after January 1, 2024 and on or before
12December 31, 2030, the taxation of biodiesel, renewable
13diesel, and biodiesel blends shall be as provided in Section
143-5.1. If, at any time, however, the tax under this Act on
15sales of biodiesel blends with no less than 1% and no more than
1610% biodiesel is imposed at the rate of 1.25%, then the tax
17imposed by this Act applies to 100% of the proceeds of sales of
18biodiesel blends with no less than 1% and no more than 10%
19biodiesel made during that time.
20    With respect to biodiesel and biodiesel blends with more
21than 10% but no more than 99% biodiesel, the tax imposed by
22this Act does not apply to the proceeds of sales made on or
23after July 1, 2003 and on or before December 31, 2023. On and
24after January 1, 2024 and on or before December 31, 2030, the
25taxation of biodiesel, renewable diesel, and biodiesel blends
26shall be as provided in Section 3-5.1.

 

 

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1    Until July 1, 2022 and beginning again on July 1, 2023,
2with respect to food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption), the tax is imposed at the rate of 1%.
7Beginning on July 1, 2022 and until July 1, 2023, with respect
8to food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages,
10food consisting of or infused with adult use cannabis, soft
11drinks, and food that has been prepared for immediate
12consumption), the tax is imposed at the rate of 0%.
13    With respect to prescription and nonprescription
14medicines, drugs, medical appliances, products classified as
15Class III medical devices by the United States Food and Drug
16Administration that are used for cancer treatment pursuant to
17a prescription, as well as any accessories and components
18related to those devices, modifications to a motor vehicle for
19the purpose of rendering it usable by a person with a
20disability, and insulin, blood sugar testing materials,
21syringes, and needles used by human diabetics, the tax is
22imposed at the rate of 1%. For the purposes of this Section,
23until September 1, 2009: the term "soft drinks" means any
24complete, finished, ready-to-use, non-alcoholic drink, whether
25carbonated or not, including, but not limited to, soda water,
26cola, fruit juice, vegetable juice, carbonated water, and all

 

 

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1other preparations commonly known as soft drinks of whatever
2kind or description that are contained in any closed or sealed
3bottle, can, carton, or container, regardless of size; but
4"soft drinks" does not include coffee, tea, non-carbonated
5water, infant formula, milk or milk products as defined in the
6Grade A Pasteurized Milk and Milk Products Act, or drinks
7containing 50% or more natural fruit or vegetable juice.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "soft drinks" means non-alcoholic
10beverages that contain natural or artificial sweeteners. "Soft
11drinks" does do not include beverages that contain milk or
12milk products, soy, rice or similar milk substitutes, or
13greater than 50% of vegetable or fruit juice by volume.
14    Until August 1, 2009, and notwithstanding any other
15provisions of this Act, "food for human consumption that is to
16be consumed off the premises where it is sold" includes all
17food sold through a vending machine, except soft drinks and
18food products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine. Beginning
20August 1, 2009, and notwithstanding any other provisions of
21this Act, "food for human consumption that is to be consumed
22off the premises where it is sold" includes all food sold
23through a vending machine, except soft drinks, candy, and food
24products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "food for human consumption that
2is to be consumed off the premises where it is sold" does not
3include candy. For purposes of this Section, "candy" means a
4preparation of sugar, honey, or other natural or artificial
5sweeteners in combination with chocolate, fruits, nuts or
6other ingredients or flavorings in the form of bars, drops, or
7pieces. "Candy" does not include any preparation that contains
8flour or requires refrigeration.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "nonprescription medicines and
11drugs" does not include grooming and hygiene products. For
12purposes of this Section, "grooming and hygiene products"
13includes, but is not limited to, soaps and cleaning solutions,
14shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
15lotions and screens, unless those products are available by
16prescription only, regardless of whether the products meet the
17definition of "over-the-counter-drugs". For the purposes of
18this paragraph, "over-the-counter-drug" means a drug for human
19use that contains a label that identifies the product as a drug
20as required by 21 CFR C.F.R. 201.66. The
21"over-the-counter-drug" label includes:
22        (A) a A "Drug Facts" panel; or
23        (B) a A statement of the "active ingredient(s)" with a
24    list of those ingredients contained in the compound,
25    substance or preparation.
26    Beginning on January 1, 2014 (the effective date of Public

 

 

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1Act 98-122) this amendatory Act of the 98th General Assembly,
2"prescription and nonprescription medicines and drugs"
3includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11    If the property that is purchased at retail from a
12retailer is acquired outside Illinois and used outside
13Illinois before being brought to Illinois for use here and is
14taxable under this Act, the "selling price" on which the tax is
15computed shall be reduced by an amount that represents a
16reasonable allowance for depreciation for the period of prior
17out-of-state use.
18(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
19102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
204-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
21102-700, Article 65, Section 65-5, eff. 4-19-22; revised
225-27-22.)
 
23    (35 ILCS 105/3-40)  (from Ch. 120, par. 439.3-40)
24    Sec. 3-40. Gasohol. As used in this Act, "gasohol" means
25motor fuel that is a blend of denatured ethanol and gasoline

 

 

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1that contains no more than 1.25% water by weight. Prior to
2January 1, 2024, the The blend must contain 90% gasoline and
310% denatured ethanol. On and after January 1, 2024, the blend
4must contain 85% gasoline and 15% denatured ethanol. A maximum
5of one percent error factor in the amount of denatured ethanol
6used in the blend is allowable to compensate for blending
7equipment variations. Any person who knowingly sells or
8represents as gasohol any fuel that does not qualify as
9gasohol under this Act is guilty of a business offense and
10shall be fined not more than $100 for each day that the sale or
11representation takes place after notification from the
12Department of Agriculture that the fuel in question does not
13qualify as gasohol.
14(Source: P.A. 93-724, eff. 7-13-04.)
 
15    (35 ILCS 105/3-44)
16    Sec. 3-44. Majority blended ethanol fuel. Prior to January
171, 2024, "majority "Majority blended ethanol fuel" means motor
18fuel that contains not less than 70% and no more than 90%
19denatured ethanol and no less than 10% and no more than 30%
20gasoline. On and after January 1, 2024, "majority blended
21ethanol fuel" means motor fuel that is capable of being used in
22the operation of flexible fuel vehicles and contains at least
2351% and not more than 83% ethanol, by volume, as specified in
24ASTM Standard D5798-11, and no less than 17% and no more than
2549% gasoline.

 

 

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1(Source: P.A. 93-17, eff. 6-11-03.)
 
2    (35 ILCS 105/3-44.3 new)
3    Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol
4blend" means a blend of gasoline and denatured ethanol that
5contains at least 20% but less than 51% denatured ethanol.
 
6    Section 10-10. The Service Use Tax Act is amended by
7changing Section 3-10 as follows:
 
8    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11the selling price of tangible personal property transferred as
12an incident to the sale of service, but, for the purpose of
13computing this tax, in no event shall the selling price be less
14than the cost price of the property to the serviceman.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act applies to (i) 70% of the selling price
21of property transferred as an incident to the sale of service
22on or after January 1, 1990, and before July 1, 2003, (ii) 80%
23of the selling price of property transferred as an incident to

 

 

10300SB1963ham002- 98 -LRB103 25648 HLH 62334 a

1the sale of service on or after July 1, 2003 and on or before
2July 1, 2017, and (iii) 100% of the selling price of property
3transferred as an incident to the sale of service after July 1,
42017 and before January 1, 2024, (iv) 90% of the selling price
5of property transferred as an incident to the sale of service
6on or after January 1, 2024 and on or before December 31, 2028,
7and (v) 100% of the selling price of property transferred as an
8incident to the sale of service after December 31, 2028
9thereafter. If, at any time, however, the tax under this Act on
10sales of gasohol, as defined in the Use Tax Act, is imposed at
11the rate of 1.25%, then the tax imposed by this Act applies to
12100% of the proceeds of sales of gasohol made during that time.
13    With respect to mid-range ethanol blends, as defined in
14Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
15applies to (i) 80% of the selling price of property
16transferred as an incident to the sale of service on or after
17January 1, 2024 and on or before December 31, 2028 and (ii)
18100% of the selling price of property transferred as an
19incident to the sale of service after December 31, 2028. If, at
20any time, however, the tax under this Act on sales of mid-range
21ethanol blends is imposed at the rate of 1.25%, then the tax
22imposed by this Act applies to 100% of the selling price of
23mid-range ethanol blends transferred as an incident to the
24sale of service during that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

10300SB1963ham002- 99 -LRB103 25648 HLH 62334 a

1to the selling price of property transferred as an incident to
2the sale of service on or after July 1, 2003 and on or before
3December 31, 2028 December 31, 2023 but applies to 100% of the
4selling price thereafter.
5    With respect to biodiesel blends, as defined in the Use
6Tax Act, with no less than 1% and no more than 10% biodiesel,
7the tax imposed by this Act applies to (i) 80% of the selling
8price of property transferred as an incident to the sale of
9service on or after July 1, 2003 and on or before December 31,
102018 and (ii) 100% of the proceeds of the selling price after
11December 31, 2018 and before January 1, 2024. On and after
12January 1, 2024 and on or before December 31, 2030, the
13taxation of biodiesel, renewable diesel, and biodiesel blends
14shall be as provided in Section 3-5.1 of the Use Tax Act. If,
15at any time, however, the tax under this Act on sales of
16biodiesel blends, as defined in the Use Tax Act, with no less
17than 1% and no more than 10% biodiesel is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of biodiesel blends with no less than 1%
20and no more than 10% biodiesel made during that time.
21    With respect to biodiesel, as defined in the Use Tax Act,
22and biodiesel blends, as defined in the Use Tax Act, with more
23than 10% but no more than 99% biodiesel, the tax imposed by
24this Act does not apply to the proceeds of the selling price of
25property transferred as an incident to the sale of service on
26or after July 1, 2003 and on or before December 31, 2023. On

 

 

10300SB1963ham002- 100 -LRB103 25648 HLH 62334 a

1and after January 1, 2024 and on or before December 31, 2030,
2the taxation of biodiesel, renewable diesel, and biodiesel
3blends shall be as provided in Section 3-5.1 of the Use Tax
4Act.
5    At the election of any registered serviceman made for each
6fiscal year, sales of service in which the aggregate annual
7cost price of tangible personal property transferred as an
8incident to the sales of service is less than 35%, or 75% in
9the case of servicemen transferring prescription drugs or
10servicemen engaged in graphic arts production, of the
11aggregate annual total gross receipts from all sales of
12service, the tax imposed by this Act shall be based on the
13serviceman's cost price of the tangible personal property
14transferred as an incident to the sale of those services.
15    Until July 1, 2022 and beginning again on July 1, 2023, the
16tax shall be imposed at the rate of 1% on food prepared for
17immediate consumption and transferred incident to a sale of
18service subject to this Act or the Service Occupation Tax Act
19by an entity licensed under the Hospital Licensing Act, the
20Nursing Home Care Act, the Assisted Living and Shared Housing
21Act, the ID/DD Community Care Act, the MC/DD Act, the
22Specialized Mental Health Rehabilitation Act of 2013, or the
23Child Care Act of 1969, or an entity that holds a permit issued
24pursuant to the Life Care Facilities Act. Until July 1, 2022
25and beginning again on July 1, 2023, the tax shall also be
26imposed at the rate of 1% on food for human consumption that is

 

 

10300SB1963ham002- 101 -LRB103 25648 HLH 62334 a

1to be consumed off the premises where it is sold (other than
2alcoholic beverages, food consisting of or infused with adult
3use cannabis, soft drinks, and food that has been prepared for
4immediate consumption and is not otherwise included in this
5paragraph).
6    Beginning on July 1, 2022 and until July 1, 2023, the tax
7shall be imposed at the rate of 0% on food prepared for
8immediate consumption and transferred incident to a sale of
9service subject to this Act or the Service Occupation Tax Act
10by an entity licensed under the Hospital Licensing Act, the
11Nursing Home Care Act, the Assisted Living and Shared Housing
12Act, the ID/DD Community Care Act, the MC/DD Act, the
13Specialized Mental Health Rehabilitation Act of 2013, or the
14Child Care Act of 1969, or an entity that holds a permit issued
15pursuant to the Life Care Facilities Act. Beginning on July 1,
162022 and until July 1, 2023, the tax shall also be imposed at
17the rate of 0% on food for human consumption that is to be
18consumed off the premises where it is sold (other than
19alcoholic beverages, food consisting of or infused with adult
20use cannabis, soft drinks, and food that has been prepared for
21immediate consumption and is not otherwise included in this
22paragraph).
23    The tax shall also be imposed at the rate of 1% on
24prescription and nonprescription medicines, drugs, medical
25appliances, products classified as Class III medical devices
26by the United States Food and Drug Administration that are

 

 

10300SB1963ham002- 102 -LRB103 25648 HLH 62334 a

1used for cancer treatment pursuant to a prescription, as well
2as any accessories and components related to those devices,
3modifications to a motor vehicle for the purpose of rendering
4it usable by a person with a disability, and insulin, blood
5sugar testing materials, syringes, and needles used by human
6diabetics. For the purposes of this Section, until September
71, 2009: the term "soft drinks" means any complete, finished,
8ready-to-use, non-alcoholic drink, whether carbonated or not,
9including, but not limited to, soda water, cola, fruit juice,
10vegetable juice, carbonated water, and all other preparations
11commonly known as soft drinks of whatever kind or description
12that are contained in any closed or sealed bottle, can,
13carton, or container, regardless of size; but "soft drinks"
14does not include coffee, tea, non-carbonated water, infant
15formula, milk or milk products as defined in the Grade A
16Pasteurized Milk and Milk Products Act, or drinks containing
1750% or more natural fruit or vegetable juice.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "soft drinks" means non-alcoholic
20beverages that contain natural or artificial sweeteners. "Soft
21drinks" does do not include beverages that contain milk or
22milk products, soy, rice or similar milk substitutes, or
23greater than 50% of vegetable or fruit juice by volume.
24    Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

 

 

10300SB1963ham002- 103 -LRB103 25648 HLH 62334 a

1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or
16other ingredients or flavorings in the form of bars, drops, or
17pieces. "Candy" does not include any preparation that contains
18flour or requires refrigeration.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "nonprescription medicines and
21drugs" does not include grooming and hygiene products. For
22purposes of this Section, "grooming and hygiene products"
23includes, but is not limited to, soaps and cleaning solutions,
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
25lotions and screens, unless those products are available by
26prescription only, regardless of whether the products meet the

 

 

10300SB1963ham002- 104 -LRB103 25648 HLH 62334 a

1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 CFR C.F.R. 201.66. The
5"over-the-counter-drug" label includes:
6        (A) a A "Drug Facts" panel; or
7        (B) a A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on January 1, 2014 (the effective date of Public
11Act 98-122), "prescription and nonprescription medicines and
12drugs" includes medical cannabis purchased from a registered
13dispensing organization under the Compassionate Use of Medical
14Cannabis Program Act.
15    As used in this Section, "adult use cannabis" means
16cannabis subject to tax under the Cannabis Cultivation
17Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
18and does not include cannabis subject to tax under the
19Compassionate Use of Medical Cannabis Program Act.
20    If the property that is acquired from a serviceman is
21acquired outside Illinois and used outside Illinois before
22being brought to Illinois for use here and is taxable under
23this Act, the "selling price" on which the tax is computed
24shall be reduced by an amount that represents a reasonable
25allowance for depreciation for the period of prior
26out-of-state use.

 

 

10300SB1963ham002- 105 -LRB103 25648 HLH 62334 a

1(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
320, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
460-20, eff. 4-19-22; revised 6-1-22.)
 
5    Section 10-15. The Service Occupation Tax Act is amended
6by changing Section 3-10 as follows:
 
7    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the "selling price", as defined in Section 2 of the Service Use
11Tax Act, of the tangible personal property. For the purpose of
12computing this tax, in no event shall the "selling price" be
13less than the cost price to the serviceman of the tangible
14personal property transferred. The selling price of each item
15of tangible personal property transferred as an incident of a
16sale of service may be shown as a distinct and separate item on
17the serviceman's billing to the service customer. If the
18selling price is not so shown, the selling price of the
19tangible personal property is deemed to be 50% of the
20serviceman's entire billing to the service customer. When,
21however, a serviceman contracts to design, develop, and
22produce special order machinery or equipment, the tax imposed
23by this Act shall be based on the serviceman's cost price of
24the tangible personal property transferred incident to the

 

 

10300SB1963ham002- 106 -LRB103 25648 HLH 62334 a

1completion of the contract.
2    Beginning on July 1, 2000 and through December 31, 2000,
3with respect to motor fuel, as defined in Section 1.1 of the
4Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
5the Use Tax Act, the tax is imposed at the rate of 1.25%.
6    With respect to gasohol, as defined in the Use Tax Act, the
7tax imposed by this Act shall apply to (i) 70% of the cost
8price of property transferred as an incident to the sale of
9service on or after January 1, 1990, and before July 1, 2003,
10(ii) 80% of the selling price of property transferred as an
11incident to the sale of service on or after July 1, 2003 and on
12or before July 1, 2017, and (iii) 100% of the selling price of
13property transferred as an incident to the sale of service
14after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
15the selling price of property transferred as an incident to
16the sale of service on or after January 1, 2024 and on or
17before December 31, 2028, and (v) 100% of the selling price of
18property transferred as an incident to the sale of service
19after December 31, 2028 cost price thereafter. If, at any
20time, however, the tax under this Act on sales of gasohol, as
21defined in the Use Tax Act, is imposed at the rate of 1.25%,
22then the tax imposed by this Act applies to 100% of the
23proceeds of sales of gasohol made during that time.
24    With respect to mid-range ethanol blends, as defined in
25Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
26applies to (i) 80% of the selling price of property

 

 

10300SB1963ham002- 107 -LRB103 25648 HLH 62334 a

1transferred as an incident to the sale of service on or after
2January 1, 2024 and on or before December 31, 2028 and (ii)
3100% of the selling price of property transferred as an
4incident to the sale of service after December 31, 2028. If, at
5any time, however, the tax under this Act on sales of mid-range
6ethanol blends is imposed at the rate of 1.25%, then the tax
7imposed by this Act applies to 100% of the selling price of
8mid-range ethanol blends transferred as an incident to the
9sale of service during that time.
10    With respect to majority blended ethanol fuel, as defined
11in the Use Tax Act, the tax imposed by this Act does not apply
12to the selling price of property transferred as an incident to
13the sale of service on or after July 1, 2003 and on or before
14December 31, 2028 December 31, 2023 but applies to 100% of the
15selling price thereafter.
16    With respect to biodiesel blends, as defined in the Use
17Tax Act, with no less than 1% and no more than 10% biodiesel,
18the tax imposed by this Act applies to (i) 80% of the selling
19price of property transferred as an incident to the sale of
20service on or after July 1, 2003 and on or before December 31,
212018 and (ii) 100% of the proceeds of the selling price after
22December 31, 2018 and before January 1, 2024. On and after
23January 1, 2024 and on or before December 31, 2030, the
24taxation of biodiesel, renewable diesel, and biodiesel blends
25shall be as provided in Section 3-5.1 of the Use Tax Act. If,
26at any time, however, the tax under this Act on sales of

 

 

10300SB1963ham002- 108 -LRB103 25648 HLH 62334 a

1biodiesel blends, as defined in the Use Tax Act, with no less
2than 1% and no more than 10% biodiesel is imposed at the rate
3of 1.25%, then the tax imposed by this Act applies to 100% of
4the proceeds of sales of biodiesel blends with no less than 1%
5and no more than 10% biodiesel made during that time.
6    With respect to biodiesel, as defined in the Use Tax Act,
7and biodiesel blends, as defined in the Use Tax Act, with more
8than 10% but no more than 99% biodiesel material, the tax
9imposed by this Act does not apply to the proceeds of the
10selling price of property transferred as an incident to the
11sale of service on or after July 1, 2003 and on or before
12December 31, 2023. On and after January 1, 2024 and on or
13before December 31, 2030, the taxation of biodiesel, renewable
14diesel, and biodiesel blends shall be as provided in Section
153-5.1 of the Use Tax Act.
16    At the election of any registered serviceman made for each
17fiscal year, sales of service in which the aggregate annual
18cost price of tangible personal property transferred as an
19incident to the sales of service is less than 35%, or 75% in
20the case of servicemen transferring prescription drugs or
21servicemen engaged in graphic arts production, of the
22aggregate annual total gross receipts from all sales of
23service, the tax imposed by this Act shall be based on the
24serviceman's cost price of the tangible personal property
25transferred incident to the sale of those services.
26    Until July 1, 2022 and beginning again on July 1, 2023, the

 

 

10300SB1963ham002- 109 -LRB103 25648 HLH 62334 a

1tax shall be imposed at the rate of 1% on food prepared for
2immediate consumption and transferred incident to a sale of
3service subject to this Act or the Service Use Tax Act by an
4entity licensed under the Hospital Licensing Act, the Nursing
5Home Care Act, the Assisted Living and Shared Housing Act, the
6ID/DD Community Care Act, the MC/DD Act, the Specialized
7Mental Health Rehabilitation Act of 2013, or the Child Care
8Act of 1969, or an entity that holds a permit issued pursuant
9to the Life Care Facilities Act. Until July 1, 2022 and
10beginning again on July 1, 2023, the tax shall also be imposed
11at the rate of 1% on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption and is not otherwise included in this
16paragraph).
17    Beginning on July 1, 2022 and until July 1, 2023, the tax
18shall be imposed at the rate of 0% on food prepared for
19immediate consumption and transferred incident to a sale of
20service subject to this Act or the Service Use Tax Act by an
21entity licensed under the Hospital Licensing Act, the Nursing
22Home Care Act, the Assisted Living and Shared Housing Act, the
23ID/DD Community Care Act, the MC/DD Act, the Specialized
24Mental Health Rehabilitation Act of 2013, or the Child Care
25Act of 1969, or an entity that holds a permit issued pursuant
26to the Life Care Facilities Act. Beginning July 1, 2022 and

 

 

10300SB1963ham002- 110 -LRB103 25648 HLH 62334 a

1until July 1, 2023, the tax shall also be imposed at the rate
2of 0% on food for human consumption that is to be consumed off
3the premises where it is sold (other than alcoholic beverages,
4food consisting of or infused with adult use cannabis, soft
5drinks, and food that has been prepared for immediate
6consumption and is not otherwise included in this paragraph).
7    The tax shall also be imposed at the rate of 1% on
8prescription and nonprescription medicines, drugs, medical
9appliances, products classified as Class III medical devices
10by the United States Food and Drug Administration that are
11used for cancer treatment pursuant to a prescription, as well
12as any accessories and components related to those devices,
13modifications to a motor vehicle for the purpose of rendering
14it usable by a person with a disability, and insulin, blood
15sugar testing materials, syringes, and needles used by human
16diabetics. For the purposes of this Section, until September
171, 2009: the term "soft drinks" means any complete, finished,
18ready-to-use, non-alcoholic drink, whether carbonated or not,
19including, but not limited to, soda water, cola, fruit juice,
20vegetable juice, carbonated water, and all other preparations
21commonly known as soft drinks of whatever kind or description
22that are contained in any closed or sealed can, carton, or
23container, regardless of size; but "soft drinks" does not
24include coffee, tea, non-carbonated water, infant formula,
25milk or milk products as defined in the Grade A Pasteurized
26Milk and Milk Products Act, or drinks containing 50% or more

 

 

10300SB1963ham002- 111 -LRB103 25648 HLH 62334 a

1natural fruit or vegetable juice.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "soft drinks" means non-alcoholic
4beverages that contain natural or artificial sweeteners. "Soft
5drinks" does do not include beverages that contain milk or
6milk products, soy, rice or similar milk substitutes, or
7greater than 50% of vegetable or fruit juice by volume.
8    Until August 1, 2009, and notwithstanding any other
9provisions of this Act, "food for human consumption that is to
10be consumed off the premises where it is sold" includes all
11food sold through a vending machine, except soft drinks and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "food for human consumption that
22is to be consumed off the premises where it is sold" does not
23include candy. For purposes of this Section, "candy" means a
24preparation of sugar, honey, or other natural or artificial
25sweeteners in combination with chocolate, fruits, nuts or
26other ingredients or flavorings in the form of bars, drops, or

 

 

10300SB1963ham002- 112 -LRB103 25648 HLH 62334 a

1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 CFR C.F.R. 201.66. The
15"over-the-counter-drug" label includes:
16        (A) a A "Drug Facts" panel; or
17        (B) a A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20    Beginning on January 1, 2014 (the effective date of Public
21Act 98-122), "prescription and nonprescription medicines and
22drugs" includes medical cannabis purchased from a registered
23dispensing organization under the Compassionate Use of Medical
24Cannabis Program Act.
25    As used in this Section, "adult use cannabis" means
26cannabis subject to tax under the Cannabis Cultivation

 

 

10300SB1963ham002- 113 -LRB103 25648 HLH 62334 a

1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
5102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
620, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
760-25, eff. 4-19-22; revised 6-1-22.)
 
8    Section 10-20. The Retailers' Occupation Tax Act is
9amended by changing Sections 2-10 and 2d as follows:
 
10    (35 ILCS 120/2-10)
11    Sec. 2-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13gross receipts from sales of tangible personal property made
14in the course of business.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    Beginning on August 6, 2010 through August 15, 2010, and
20beginning again on August 5, 2022 through August 14, 2022,
21with respect to sales tax holiday items as defined in Section
222-8 of this Act, the tax is imposed at the rate of 1.25%.
23    Within 14 days after July 1, 2000 (the effective date of
24Public Act 91-872) this amendatory Act of the 91st General

 

 

10300SB1963ham002- 114 -LRB103 25648 HLH 62334 a

1Assembly, each retailer of motor fuel and gasohol shall cause
2the following notice to be posted in a prominently visible
3place on each retail dispensing device that is used to
4dispense motor fuel or gasohol in the State of Illinois: "As of
5July 1, 2000, the State of Illinois has eliminated the State's
6share of sales tax on motor fuel and gasohol through December
731, 2000. The price on this pump should reflect the
8elimination of the tax." The notice shall be printed in bold
9print on a sign that is no smaller than 4 inches by 8 inches.
10The sign shall be clearly visible to customers. Any retailer
11who fails to post or maintain a required sign through December
1231, 2000 is guilty of a petty offense for which the fine shall
13be $500 per day per each retail premises where a violation
14occurs.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act applies to (i) 70% of the proceeds of
17sales made on or after January 1, 1990, and before July 1,
182003, (ii) 80% of the proceeds of sales made on or after July
191, 2003 and on or before July 1, 2017, and (iii) 100% of the
20proceeds of sales made after July 1, 2017 and prior to January
211, 2024, (iv) 90% of the proceeds of sales made on or after
22January 1, 2024 and on or before December 31, 2028, and (v)
23100% of the proceeds of sales made after December 31, 2028
24thereafter. If, at any time, however, the tax under this Act on
25sales of gasohol, as defined in the Use Tax Act, is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

 

 

10300SB1963ham002- 115 -LRB103 25648 HLH 62334 a

1100% of the proceeds of sales of gasohol made during that time.
2    With respect to mid-range ethanol blends, as defined in
3Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4applies to (i) 80% of the proceeds of sales made on or after
5January 1, 2024 and on or before December 31, 2028 and (ii)
6100% of the proceeds of sales made after December 31, 2028. If,
7at any time, however, the tax under this Act on sales of
8mid-range ethanol blends is imposed at the rate of 1.25%, then
9the tax imposed by this Act applies to 100% of the proceeds of
10sales of mid-range ethanol blends made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the proceeds of sales made on or after July 1, 2003 and on
14or before December 31, 2028 December 31, 2023 but applies to
15100% of the proceeds of sales made thereafter.
16    With respect to biodiesel blends, as defined in the Use
17Tax Act, with no less than 1% and no more than 10% biodiesel,
18the tax imposed by this Act applies to (i) 80% of the proceeds
19of sales made on or after July 1, 2003 and on or before
20December 31, 2018 and (ii) 100% of the proceeds of sales made
21after December 31, 2018 and before January 1, 2024. On and
22after January 1, 2024 and on or before December 31, 2030, the
23taxation of biodiesel, renewable diesel, and biodiesel blends
24shall be as provided in Section 3-5.1 of the Use Tax Act. If,
25at any time, however, the tax under this Act on sales of
26biodiesel blends, as defined in the Use Tax Act, with no less

 

 

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1than 1% and no more than 10% biodiesel is imposed at the rate
2of 1.25%, then the tax imposed by this Act applies to 100% of
3the proceeds of sales of biodiesel blends with no less than 1%
4and no more than 10% biodiesel made during that time.
5    With respect to biodiesel, as defined in the Use Tax Act,
6and biodiesel blends, as defined in the Use Tax Act, with more
7than 10% but no more than 99% biodiesel, the tax imposed by
8this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023. On and
10after January 1, 2024 and on or before December 31, 2030, the
11taxation of biodiesel, renewable diesel, and biodiesel blends
12shall be as provided in Section 3-5.1 of the Use Tax Act.
13    Until July 1, 2022 and beginning again on July 1, 2023,
14with respect to food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, food consisting of or infused with adult
17use cannabis, soft drinks, and food that has been prepared for
18immediate consumption), the tax is imposed at the rate of 1%.
19Beginning July 1, 2022 and until July 1, 2023, with respect to
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages,
22food consisting of or infused with adult use cannabis, soft
23drinks, and food that has been prepared for immediate
24consumption), the tax is imposed at the rate of 0%.
25    With respect to prescription and nonprescription
26medicines, drugs, medical appliances, products classified as

 

 

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1Class III medical devices by the United States Food and Drug
2Administration that are used for cancer treatment pursuant to
3a prescription, as well as any accessories and components
4related to those devices, modifications to a motor vehicle for
5the purpose of rendering it usable by a person with a
6disability, and insulin, blood sugar testing materials,
7syringes, and needles used by human diabetics, the tax is
8imposed at the rate of 1%. For the purposes of this Section,
9until September 1, 2009: the term "soft drinks" means any
10complete, finished, ready-to-use, non-alcoholic drink, whether
11carbonated or not, including, but not limited to, soda water,
12cola, fruit juice, vegetable juice, carbonated water, and all
13other preparations commonly known as soft drinks of whatever
14kind or description that are contained in any closed or sealed
15bottle, can, carton, or container, regardless of size; but
16"soft drinks" does not include coffee, tea, non-carbonated
17water, infant formula, milk or milk products as defined in the
18Grade A Pasteurized Milk and Milk Products Act, or drinks
19containing 50% or more natural fruit or vegetable juice.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" does do not include beverages that contain milk or
24milk products, soy, rice or similar milk substitutes, or
25greater than 50% of vegetable or fruit juice by volume.
26    Until August 1, 2009, and notwithstanding any other

 

 

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1provisions of this Act, "food for human consumption that is to
2be consumed off the premises where it is sold" includes all
3food sold through a vending machine, except soft drinks and
4food products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine. Beginning
6August 1, 2009, and notwithstanding any other provisions of
7this Act, "food for human consumption that is to be consumed
8off the premises where it is sold" includes all food sold
9through a vending machine, except soft drinks, candy, and food
10products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "food for human consumption that
14is to be consumed off the premises where it is sold" does not
15include candy. For purposes of this Section, "candy" means a
16preparation of sugar, honey, or other natural or artificial
17sweeteners in combination with chocolate, fruits, nuts or
18other ingredients or flavorings in the form of bars, drops, or
19pieces. "Candy" does not include any preparation that contains
20flour or requires refrigeration.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "nonprescription medicines and
23drugs" does not include grooming and hygiene products. For
24purposes of this Section, "grooming and hygiene products"
25includes, but is not limited to, soaps and cleaning solutions,
26shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

 

 

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1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 CFR C.F.R. 201.66. The
7"over-the-counter-drug" label includes:
8        (A) a A "Drug Facts" panel; or
9        (B) a A statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    Beginning on January 1, 2014 (the effective date of Public
13Act 98-122) this amendatory Act of the 98th General Assembly,
14"prescription and nonprescription medicines and drugs"
15includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
24102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
254-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
26102-700, Article 65, Section 65-10, eff. 4-19-22; revised

 

 

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16-1-22.)
 
2    (35 ILCS 120/2d)  (from Ch. 120, par. 441d)
3    Sec. 2d. Tax prepayment by motor fuel retailer.
4    (a) Any person engaged in the business of selling motor
5fuel at retail, as defined in the Motor Fuel Tax Law, and who
6is not a licensed distributor or supplier, as defined in the
7Motor Fuel Tax Law, shall prepay to his or her distributor,
8supplier, or other reseller of motor fuel a portion of the tax
9imposed by this Act if the distributor, supplier, or other
10reseller of motor fuel is registered under Section 2a or
11Section 2c of this Act. The prepayment requirement provided
12for in this Section does not apply to liquid propane gas.
13    (b) Beginning on July 1, 2000 and through December 31,
142000, the Retailers' Occupation Tax paid to the distributor,
15supplier, or other reseller shall be an amount equal to $0.01
16per gallon of the motor fuel, except gasohol as defined in
17Section 2-10 of this Act which shall be an amount equal to
18$0.01 per gallon, purchased from the distributor, supplier, or
19other reseller.
20    (c) Before July 1, 2000 and then beginning on January 1,
212001 and through June 30, 2003, the Retailers' Occupation Tax
22paid to the distributor, supplier, or other reseller shall be
23an amount equal to $0.04 per gallon of the motor fuel, except
24gasohol as defined in Section 2-10 of this Act which shall be
25an amount equal to $0.03 per gallon, purchased from the

 

 

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1distributor, supplier, or other reseller.
2    (d) Beginning July 1, 2003 and through December 31, 2010,
3the Retailers' Occupation Tax paid to the distributor,
4supplier, or other reseller shall be an amount equal to $0.06
5per gallon of the motor fuel, except gasohol as defined in
6Section 2-10 of this Act which shall be an amount equal to
7$0.05 per gallon, purchased from the distributor, supplier, or
8other reseller.
9    (e) Beginning on January 1, 2011 and thereafter, the
10Retailers' Occupation Tax paid to the distributor, supplier,
11or other reseller shall be at the rate established by the
12Department under this subsection. The rate shall be
13established by the Department on January 1 and July 1 of each
14year using the average selling price, as defined in Section 1
15of this Act, per gallon of motor fuel sold in the State during
16the previous 6 months and multiplying that amount by 6.25% to
17determine the cents per gallon rate. Beginning on January 1,
182024 and through December 31, 2028, In the case of biodiesel
19blends, as defined in Section 3-42 of the Use Tax Act, with no
20less than 1% and no more than 10% biodiesel, and in the case of
21gasohol, as defined in Section 3-40 of the Use Tax Act, the
22rate shall be 90% 80% of the rate established by the Department
23under this subsection for motor fuel. Beginning on January 1,
242024 and through December 31, 2028, in the case of mid-range
25ethanol blends, as defined in Section 3-44.3 of the Use Tax
26Act, the rate shall be 80% of the rate established by the

 

 

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1Department under this subsection for motor fuel. The
2Department shall provide persons subject to this Section
3notice of the rate established under this subsection at least
420 days prior to each January 1 and July 1. Publication of the
5established rate on the Department's internet website shall
6constitute sufficient notice under this Section. The
7Department may use data derived from independent surveys
8conducted or accumulated by third parties to determine the
9average selling price per gallon of motor fuel sold in the
10State.
11    (f) Any person engaged in the business of selling motor
12fuel at retail shall be entitled to a credit against tax due
13under this Act in an amount equal to the tax paid to the
14distributor, supplier, or other reseller.
15    (g) Every distributor, supplier, or other reseller
16registered as provided in Section 2a or Section 2c of this Act
17shall remit the prepaid tax on all motor fuel that is due from
18any person engaged in the business of selling at retail motor
19fuel with the returns filed under Section 2f or Section 3 of
20this Act, but the vendors discount provided in Section 3 shall
21not apply to the amount of prepaid tax that is remitted. Any
22distributor or supplier who fails to properly collect and
23remit the tax shall be liable for the tax. For purposes of this
24Section, the prepaid tax is due on invoiced gallons sold
25during a month by the 20th day of the following month.
26(Source: P.A. 96-1384, eff. 7-29-10.)
 

 

 

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1
ARTICLE 15. ELECTRIC GENERATION EQUIPMENT

 
2    Section 15-5. The Use Tax Act is amended by changing
3Section 3-5 as follows:
 
4    (35 ILCS 105/3-5)
5    Sec. 3-5. Exemptions. Use of the following tangible
6personal property is exempt from the tax imposed by this Act:
7    (1) Personal property purchased from a corporation,
8society, association, foundation, institution, or
9organization, other than a limited liability company, that is
10organized and operated as a not-for-profit service enterprise
11for the benefit of persons 65 years of age or older if the
12personal property was not purchased by the enterprise for the
13purpose of resale by the enterprise.
14    (2) Personal property purchased by a not-for-profit
15Illinois county fair association for use in conducting,
16operating, or promoting the county fair.
17    (3) Personal property purchased by a not-for-profit arts
18or cultural organization that establishes, by proof required
19by the Department by rule, that it has received an exemption
20under Section 501(c)(3) of the Internal Revenue Code and that
21is organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. 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.
6    Beginning on January 1, 2024, farm machinery and equipment
7also includes electrical power generation equipment used
8primarily for production agriculture.
9    This item (11) is exempt from the provisions of Section
103-90.
11    (12) Until June 30, 2013, fuel and petroleum products sold
12to or used by an air common carrier, certified by the carrier
13to be used for consumption, shipment, or storage in the
14conduct of its business as an air common carrier, for a flight
15destined for or returning from a location or locations outside
16the United States without regard to previous or subsequent
17domestic stopovers.
18    Beginning July 1, 2013, fuel and petroleum products sold
19to or used by an air carrier, certified by the carrier to be
20used for consumption, shipment, or storage in the conduct of
21its business as an air common carrier, for a flight that (i) is
22engaged in foreign trade or is engaged in trade between the
23United States and any of its possessions and (ii) transports
24at least one individual or package for hire from the city of
25origination to the city of final destination on the same
26aircraft, without regard to a change in the flight number of

 

 

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

 

 

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after August 16, 2013
7(the effective date of Public Act 98-456) for such taxes paid
8during the period beginning July 1, 2003 and ending on August
916, 2013 (the effective date of Public Act 98-456).
10    (17) Until July 1, 2003, distillation machinery and
11equipment, sold as a unit or kit, assembled or installed by the
12retailer, certified by the user to be used only for the
13production of ethyl alcohol that will be used for consumption
14as motor fuel or as a component of motor fuel for the personal
15use of the user, and not subject to sale or resale.
16    (18) Manufacturing and assembling machinery and equipment
17used primarily in the process of manufacturing or assembling
18tangible personal property for wholesale or retail sale or
19lease, whether that sale or lease is made directly by the
20manufacturer or by some other person, whether the materials
21used in the process are owned by the manufacturer or some other
22person, or whether that sale or lease is made apart from or as
23an incident to the seller's engaging in the service occupation
24of producing machines, tools, dies, jigs, patterns, gauges, or
25other similar items of no commercial value on special order
26for a particular purchaser. The exemption provided by this

 

 

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1paragraph (18) includes production related tangible personal
2property, as defined in Section 3-50, purchased on or after
3July 1, 2019. The exemption provided by this paragraph (18)
4does not include machinery and equipment used in (i) the
5generation of electricity for wholesale or retail sale; (ii)
6the generation or treatment of natural or artificial gas for
7wholesale or retail sale that is delivered to customers
8through pipes, pipelines, or mains; or (iii) the treatment of
9water for wholesale or retail sale that is delivered to
10customers through pipes, pipelines, or mains. The provisions
11of Public Act 98-583 are declaratory of existing law as to the
12meaning and scope of this exemption. Beginning on July 1,
132017, the exemption provided by this paragraph (18) includes,
14but is not limited to, graphic arts machinery and equipment,
15as defined in paragraph (6) of this Section.
16    (19) Personal property delivered to a purchaser or
17purchaser's donee inside Illinois when the purchase order for
18that personal property was received by a florist located
19outside Illinois who has a florist located inside Illinois
20deliver the personal property.
21    (20) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (21) 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 (21) is exempt from the
3provisions of Section 3-90, and the exemption provided for
4under this item (21) applies for all periods beginning May 30,
51995, but no claim for credit or refund is allowed on or after
6January 1, 2008 for such taxes paid during the period
7beginning May 30, 2000 and ending on January 1, 2008.
8    (22) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients purchased by a
11lessor who leases the equipment, under a lease of one year or
12longer executed or in effect at the time the lessor would
13otherwise be subject to the tax imposed by this Act, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act. If the equipment is leased
17in a manner that does not qualify for this exemption or is used
18in any other non-exempt manner, the lessor shall be liable for
19the tax imposed under this Act or the Service Use Tax Act, as
20the case may be, based on the fair market value of the property
21at the time the non-qualifying use occurs. No lessor shall
22collect or attempt to collect an amount (however designated)
23that purports to reimburse that lessor for the tax imposed by
24this Act or the Service Use Tax Act, as the case may be, if the
25tax has not been paid by the lessor. If a lessor improperly
26collects any such amount from the lessee, the lessee shall

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is donated
3for disaster relief to be used in a State or federally declared
4disaster area in Illinois or bordering Illinois by a
5manufacturer or retailer that is registered in this State to a
6corporation, society, association, foundation, or institution
7that has been issued a sales tax exemption identification
8number by the Department that assists victims of the disaster
9who reside within the declared disaster area.
10    (25) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is used in
13the performance of infrastructure repairs in this State,
14including but not limited to municipal roads and streets,
15access roads, bridges, sidewalks, waste disposal systems,
16water and sewer line extensions, water distribution and
17purification facilities, storm water drainage and retention
18facilities, and sewage treatment facilities, resulting from a
19State or federally declared disaster in Illinois or bordering
20Illinois when such repairs are initiated on facilities located
21in the declared disaster area within 6 months after the
22disaster.
23    (26) Beginning July 1, 1999, game or game birds purchased
24at a "game breeding and hunting preserve area" as that term is
25used in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 3-90.

 

 

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

 

 

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1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 3-90.
8    (29) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and
11other items, and replacement parts for these machines.
12Beginning January 1, 2002 and through June 30, 2003, machines
13and parts for machines used in commercial, coin-operated
14amusement and vending business if a use or occupation tax is
15paid on the gross receipts derived from the use of the
16commercial, coin-operated amusement and vending machines. This
17paragraph is exempt from the provisions of Section 3-90.
18    (30) Beginning January 1, 2001 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks, and food that has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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

 

 

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

 

 

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1    (33) On and after July 1, 2003 and through June 30, 2004,
2the use in this State of motor vehicles of the second division
3with a gross vehicle weight in excess of 8,000 pounds and that
4are subject to the commercial distribution fee imposed under
5Section 3-815.1 of the Illinois Vehicle Code. Beginning on
6July 1, 2004 and through June 30, 2005, the use in this State
7of motor vehicles of the second division: (i) with a gross
8vehicle weight rating in excess of 8,000 pounds; (ii) that are
9subject to the commercial distribution fee imposed under
10Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
11are primarily used for commercial purposes. Through June 30,
122005, this exemption applies to repair and replacement parts
13added after the initial purchase of such a motor vehicle if
14that motor vehicle is used in a manner that would qualify for
15the rolling stock exemption otherwise provided for in this
16Act. For purposes of this paragraph, the term "used for
17commercial purposes" means the transportation of persons or
18property in furtherance of any commercial or industrial
19enterprise, whether for-hire or not.
20    (34) Beginning January 1, 2008, tangible personal property
21used in the construction or maintenance of a community water
22supply, as defined under Section 3.145 of the Environmental
23Protection Act, that is operated by a not-for-profit
24corporation that holds a valid water supply permit issued
25under Title IV of the Environmental Protection Act. This
26paragraph is exempt from the provisions of Section 3-90.

 

 

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1    (35) Beginning January 1, 2010 and continuing through
2December 31, 2024, materials, parts, equipment, components,
3and furnishings incorporated into or upon an aircraft as part
4of the modification, refurbishment, completion, replacement,
5repair, or maintenance of the aircraft. This exemption
6includes consumable supplies used in the modification,
7refurbishment, completion, replacement, repair, and
8maintenance of aircraft, but excludes any materials, parts,
9equipment, components, and consumable supplies used in the
10modification, replacement, repair, and maintenance of aircraft
11engines or power plants, whether such engines or power plants
12are installed or uninstalled upon any such aircraft.
13"Consumable supplies" include, but are not limited to,
14adhesive, tape, sandpaper, general purpose lubricants,
15cleaning solution, latex gloves, and protective films. This
16exemption applies only to the use of qualifying tangible
17personal property by persons who modify, refurbish, complete,
18repair, replace, or maintain aircraft and who (i) hold an Air
19Agency Certificate and are empowered to operate an approved
20repair station by the Federal Aviation Administration, (ii)
21have a Class IV Rating, and (iii) conduct operations in
22accordance with Part 145 of the Federal Aviation Regulations.
23The exemption does not include aircraft operated by a
24commercial air carrier providing scheduled passenger air
25service pursuant to authority issued under Part 121 or Part
26129 of the Federal Aviation Regulations. The changes made to

 

 

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1this paragraph (35) by Public Act 98-534 are declarative of
2existing law. It is the intent of the General Assembly that the
3exemption under this paragraph (35) applies continuously from
4January 1, 2010 through December 31, 2024; however, no claim
5for credit or refund is allowed for taxes paid as a result of
6the disallowance of this exemption on or after January 1, 2015
7and prior to February 5, 2020 (the effective date of Public Act
8101-629) this amendatory Act of the 101st General Assembly.
9    (36) Tangible personal property purchased by a
10public-facilities corporation, as described in Section
1111-65-10 of the Illinois Municipal Code, for purposes of
12constructing or furnishing a municipal convention hall, but
13only if the legal title to the municipal convention hall is
14transferred to the municipality without any further
15consideration by or on behalf of the municipality at the time
16of the completion of the municipal convention hall or upon the
17retirement or redemption of any bonds or other debt
18instruments issued by the public-facilities corporation in
19connection with the development of the municipal convention
20hall. This exemption includes existing public-facilities
21corporations as provided in Section 11-65-25 of the Illinois
22Municipal Code. This paragraph is exempt from the provisions
23of Section 3-90.
24    (37) Beginning January 1, 2017 and through December 31,
252026, menstrual pads, tampons, and menstrual cups.
26    (38) Merchandise that is subject to the Rental Purchase

 

 

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1Agreement Occupation and Use Tax. The purchaser must certify
2that the item is purchased to be rented subject to a rental
3purchase agreement, as defined in the Rental Purchase
4Agreement Act, and provide proof of registration under the
5Rental Purchase Agreement Occupation and Use Tax Act. This
6paragraph is exempt from the provisions of Section 3-90.
7    (39) Tangible personal property purchased by a purchaser
8who is exempt from the tax imposed by this Act by operation of
9federal law. This paragraph is exempt from the provisions of
10Section 3-90.
11    (40) Qualified tangible personal property used in the
12construction or operation of a data center that has been
13granted a certificate of exemption by the Department of
14Commerce and Economic Opportunity, whether that tangible
15personal property is purchased by the owner, operator, or
16tenant of the data center or by a contractor or subcontractor
17of the owner, operator, or tenant. Data centers that would
18have qualified for a certificate of exemption prior to January
191, 2020 had Public Act 101-31 been in effect may apply for and
20obtain an exemption for subsequent purchases of computer
21equipment or enabling software purchased or leased to upgrade,
22supplement, or replace computer equipment or enabling software
23purchased or leased in the original investment that would have
24qualified.
25    The Department of Commerce and Economic Opportunity shall
26grant a certificate of exemption under this item (40) to

 

 

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

 

 

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1    personal property; and all other tangible personal
2    property that is essential to the operations of a computer
3    data center. The term "qualified tangible personal
4    property" also includes building materials physically
5    incorporated in to the qualifying data center. To document
6    the exemption allowed under this Section, the retailer
7    must obtain from the purchaser a copy of the certificate
8    of eligibility issued by the Department of Commerce and
9    Economic Opportunity.
10    This item (40) is exempt from the provisions of Section
113-90.
12    (41) Beginning July 1, 2022, breast pumps, breast pump
13collection and storage supplies, and breast pump kits. This
14item (41) is exempt from the provisions of Section 3-90. As
15used in this item (41):
16        "Breast pump" means an electrically controlled or
17    manually controlled pump device designed or marketed to be
18    used to express milk from a human breast during lactation,
19    including the pump device and any battery, AC adapter, or
20    other power supply unit that is used to power the pump
21    device and is packaged and sold with the pump device at the
22    time of sale.
23        "Breast pump collection and storage supplies" means
24    items of tangible personal property designed or marketed
25    to be used in conjunction with a breast pump to collect
26    milk expressed from a human breast and to store collected

 

 

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

 

 

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1    manufacturer or distributor.
2    (42) (41) Tangible personal property sold by or on behalf
3of the State Treasurer pursuant to the Revised Uniform
4Unclaimed Property Act. This item (42) (41) is exempt from the
5provisions of Section 3-90.
6(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
7101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
86-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
9102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
10eff. 5-27-22; revised 8-1-22.)
 
11    Section 15-10. The Service Use Tax Act is amended by
12changing Section 3-5 as follows:
 
13    (35 ILCS 110/3-5)
14    Sec. 3-5. Exemptions. Use of the following tangible
15personal property is exempt from the tax imposed by this Act:
16    (1) Personal property purchased from a corporation,
17society, association, foundation, institution, or
18organization, other than a limited liability company, that is
19organized and operated as a not-for-profit service enterprise
20for the benefit of persons 65 years of age or older if the
21personal property was not purchased by the enterprise for the
22purpose of resale by the enterprise.
23    (2) Personal property purchased by a non-profit Illinois
24county fair association for use in conducting, operating, or

 

 

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1promoting the county fair.
2    (3) Personal property purchased by a not-for-profit arts
3or cultural organization that establishes, by proof required
4by the Department by rule, that it has received an exemption
5under Section 501(c)(3) of the Internal Revenue Code and that
6is organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after July 1, 2001 (the
13effective date of Public Act 92-35), however, an entity
14otherwise eligible for this exemption shall not make tax-free
15purchases unless it has an active identification number issued
16by the Department.
17    (4) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (5) Until July 1, 2003 and beginning again on September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new
24and used, and including that manufactured on special order or
25purchased for lease, certified by the purchaser to be used
26primarily for graphic arts production. Equipment includes

 

 

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

 

 

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1on a motor vehicle required to be licensed if the selling price
2of the tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals.
18    Beginning on January 1, 2024, farm machinery and equipment
19also includes electrical power generation equipment used
20primarily for production agriculture.
21    This item (7) is exempt from the provisions of Section
223-75.
23    (8) Until June 30, 2013, fuel and petroleum products sold
24to or used by an air common carrier, certified by the carrier
25to be used for consumption, shipment, or storage in the
26conduct of its business as an air common carrier, for a flight

 

 

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

 

 

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1(iii) pumps and pump-jack units, (iv) storage tanks and flow
2lines, (v) any individual replacement part for oil field
3exploration, drilling, and production equipment, and (vi)
4machinery and equipment purchased for lease; but excluding
5motor vehicles required to be registered under the Illinois
6Vehicle Code.
7    (11) Proceeds from the sale of photoprocessing machinery
8and equipment, including repair and replacement parts, both
9new and used, including that manufactured on special order,
10certified by the purchaser to be used primarily for
11photoprocessing, and including photoprocessing machinery and
12equipment 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) Semen used for artificial insemination of livestock
25for direct agricultural production.
26    (14) Horses, or interests in horses, registered with and

 

 

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1meeting the requirements of any of the Arabian Horse Club
2Registry of America, Appaloosa Horse Club, American Quarter
3Horse Association, United States Trotting Association, or
4Jockey Club, as appropriate, used for purposes of breeding or
5racing for prizes. This item (14) is exempt from the
6provisions of Section 3-75, and the exemption provided for
7under this item (14) applies for all periods beginning May 30,
81995, but no claim for credit or refund is allowed on or after
9January 1, 2008 (the effective date of Public Act 95-88) for
10such taxes paid during the period beginning May 30, 2000 and
11ending on January 1, 2008 (the effective date of Public Act
1295-88).
13    (15) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. If the equipment is leased
22in a manner that does not qualify for this exemption or is used
23in any other non-exempt manner, the lessor shall be liable for
24the tax imposed under this Act or the Use Tax Act, as the case
25may be, based on the fair market value of the property at the
26time the non-qualifying use occurs. No lessor shall collect or

 

 

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

 

 

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

 

 

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1    (19) Beginning July 1, 1999, game or game birds purchased
2at a "game breeding and hunting preserve area" as that term is
3used in the Wildlife Code. This paragraph is exempt from the
4provisions of Section 3-75.
5    (20) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the
9Department to be organized and operated exclusively for
10educational purposes. For purposes of this exemption, "a
11corporation, limited liability company, society, association,
12foundation, or institution organized and operated exclusively
13for educational purposes" means all tax-supported public
14schools, private schools that offer systematic instruction in
15useful branches of learning by methods common to public
16schools and that compare favorably in their scope and
17intensity with the course of study presented in tax-supported
18schools, and vocational or technical schools or institutes
19organized and operated exclusively to provide a course of
20study of not less than 6 weeks duration and designed to prepare
21individuals to follow a trade or to pursue a manual,
22technical, mechanical, industrial, business, or commercial
23occupation.
24    (21) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-75.
12    (22) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and
15other items, and replacement parts for these machines.
16Beginning January 1, 2002 and through June 30, 2003, machines
17and parts for machines used in commercial, coin-operated
18amusement and vending business if a use or occupation tax is
19paid on the gross receipts derived from the use of the
20commercial, coin-operated amusement and vending machines. This
21paragraph is exempt from the provisions of Section 3-75.
22    (23) Beginning August 23, 2001 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages,
25soft drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or in a licensed facility as defined
7in the ID/DD Community Care Act, the MC/DD Act, or the
8Specialized Mental Health Rehabilitation Act of 2013.
9    (24) Beginning on August 2, 2001 (the effective date of
10Public Act 92-227), computers and communications equipment
11utilized for any hospital purpose and equipment used in the
12diagnosis, analysis, or treatment of hospital patients
13purchased by a lessor who leases the equipment, under a lease
14of one year or longer executed or in effect at the time the
15lessor would otherwise be subject to the tax imposed by this
16Act, to a hospital 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 nonexempt 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 nonqualifying 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. This paragraph is exempt from the provisions of
7Section 3-75.
8    (25) Beginning on August 2, 2001 (the effective date of
9Public Act 92-227), personal property purchased by a lessor
10who leases the property, under a lease of one year or longer
11executed or in effect at the time the lessor would otherwise be
12subject to the tax imposed by this Act, to a governmental body
13that has been issued an active tax exemption identification
14number by the Department under Section 1g of the Retailers'
15Occupation Tax Act. If the property is leased in a manner that
16does not qualify for this exemption or is used in any other
17nonexempt manner, the lessor shall be liable for the tax
18imposed under this Act or the Use Tax Act, as the case may be,
19based on the fair market value of the property at the time the
20nonqualifying use occurs. No lessor shall collect or attempt
21to collect an amount (however designated) that purports to
22reimburse that lessor for the tax imposed by this Act or the
23Use Tax Act, as the case may be, if the tax has not been paid
24by the lessor. If a lessor improperly collects any such amount
25from the lessee, the lessee shall have a legal right to claim a
26refund of that amount from the lessor. If, however, that

 

 

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

 

 

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1personal property transferred incident to the modification,
2refurbishment, completion, replacement, repair, or maintenance
3of aircraft by persons who (i) hold an Air Agency Certificate
4and are empowered to operate an approved repair station by the
5Federal Aviation Administration, (ii) have a Class IV Rating,
6and (iii) conduct operations in accordance with Part 145 of
7the Federal Aviation Regulations. The exemption does not
8include aircraft operated by a commercial air carrier
9providing scheduled passenger air service pursuant to
10authority issued under Part 121 or Part 129 of the Federal
11Aviation Regulations. The changes made to this paragraph (27)
12by Public Act 98-534 are declarative of existing law. It is the
13intent of the General Assembly that the exemption under this
14paragraph (27) applies continuously from January 1, 2010
15through December 31, 2024; however, no claim for credit or
16refund is allowed for taxes paid as a result of the
17disallowance of this exemption on or after January 1, 2015 and
18prior to February 5, 2020 (the effective date of Public Act
19101-629) this amendatory Act of the 101st General Assembly.
20    (28) Tangible personal property purchased by a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt
3instruments issued by the public-facilities corporation in
4connection with the development of the municipal convention
5hall. This exemption includes existing public-facilities
6corporations as provided in Section 11-65-25 of the Illinois
7Municipal Code. This paragraph is exempt from the provisions
8of Section 3-75.
9    (29) Beginning January 1, 2017 and through December 31,
102026, menstrual pads, tampons, and menstrual cups.
11    (30) Tangible personal property transferred to a purchaser
12who is exempt from the tax imposed by this Act by operation of
13federal law. This paragraph is exempt from the provisions of
14Section 3-75.
15    (31) Qualified tangible personal property used in the
16construction or operation of a data center that has been
17granted a certificate of exemption by the Department of
18Commerce and Economic Opportunity, whether that tangible
19personal property is purchased by the owner, operator, or
20tenant of the data center or by a contractor or subcontractor
21of the owner, operator, or tenant. Data centers that would
22have qualified for a certificate of exemption prior to January
231, 2020 had Public Act 101-31 this amendatory Act of the 101st
24General Assembly been in effect, may apply for and obtain an
25exemption for subsequent purchases of computer equipment or
26enabling software purchased or leased to upgrade, supplement,

 

 

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

 

 

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1    and component parts of any of the foregoing, including
2    installation, maintenance, repair, refurbishment, and
3    replacement of qualified tangible personal property to
4    generate, transform, transmit, distribute, or manage
5    electricity necessary to operate qualified tangible
6    personal property; and all other tangible personal
7    property that is essential to the operations of a computer
8    data center. The term "qualified tangible personal
9    property" also includes building materials physically
10    incorporated in to the qualifying data center. To document
11    the exemption allowed under this Section, the retailer
12    must obtain from the purchaser a copy of the certificate
13    of eligibility issued by the Department of Commerce and
14    Economic Opportunity.
15    This item (31) is exempt from the provisions of Section
163-75.
17    (32) Beginning July 1, 2022, breast pumps, breast pump
18collection and storage supplies, and breast pump kits. This
19item (32) is exempt from the provisions of Section 3-75. As
20used in this item (32):
21        "Breast pump" means an electrically controlled or
22    manually controlled pump device designed or marketed to be
23    used to express milk from a human breast during lactation,
24    including the pump device and any battery, AC adapter, or
25    other power supply unit that is used to power the pump
26    device and is packaged and sold with the pump device at the

 

 

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

 

 

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1    more than a breast pump, breast pump collection and
2    storage supplies, a rechargeable battery for operating the
3    breast pump, a breastmilk cooler, bottle stands, ice
4    packs, and a breast pump carrying case; and (2) is
5    pre-packaged as a breast pump kit by the breast pump
6    manufacturer or distributor.
7    (33) (32) Tangible personal property sold by or on behalf
8of the State Treasurer pursuant to the Revised Uniform
9Unclaimed Property Act. This item (33) (32) is exempt from the
10provisions of Section 3-75.
11(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
12101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1370, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1475-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
15    Section 15-15. The Service Occupation Tax Act is amended
16by changing Section 3-5 as follows:
 
17    (35 ILCS 115/3-5)
18    Sec. 3-5. Exemptions. The following tangible personal
19property is exempt from the tax imposed by this Act:
20    (1) Personal property sold by a corporation, society,
21association, foundation, institution, or organization, other
22than a limited liability company, that is organized and
23operated as a not-for-profit service enterprise for the
24benefit of persons 65 years of age or older if the personal

 

 

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1property was not purchased by the enterprise for the purpose
2of resale by the enterprise.
3    (2) Personal property purchased by a not-for-profit
4Illinois county fair association for use in conducting,
5operating, or promoting the county fair.
6    (3) Personal property purchased by any not-for-profit arts
7or cultural organization that establishes, by proof required
8by the Department by rule, that it has received an exemption
9under Section 501(c)(3) of the Internal Revenue Code and that
10is organized and operated primarily for the presentation or
11support of arts or cultural programming, activities, or
12services. These organizations include, but are not limited to,
13music and dramatic arts organizations such as symphony
14orchestras and theatrical groups, arts and cultural service
15organizations, local arts councils, visual arts organizations,
16and media arts organizations. On and after July 1, 2001 (the
17effective date of Public Act 92-35), however, an entity
18otherwise eligible for this exemption shall not make tax-free
19purchases unless it has an active identification number issued
20by the Department.
21    (4) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (5) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

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

 

 

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1overwintering plants shall be considered farm machinery and
2equipment under this item (7). Agricultural chemical tender
3tanks and dry boxes shall include units sold separately from a
4motor vehicle required to be licensed and units sold mounted
5on a motor vehicle required to be licensed if the selling price
6of the tender is separately stated.
7    Farm machinery and equipment shall include precision
8farming equipment that is installed or purchased to be
9installed on farm machinery and equipment including, but not
10limited to, tractors, harvesters, sprayers, planters, seeders,
11or spreaders. Precision farming equipment includes, but is not
12limited to, soil testing sensors, computers, monitors,
13software, global positioning and mapping systems, and other
14such equipment.
15    Farm machinery and equipment also includes computers,
16sensors, software, and related equipment used primarily in the
17computer-assisted operation of production agriculture
18facilities, equipment, and activities such as, but not limited
19to, the collection, monitoring, and correlation of animal and
20crop data for the purpose of formulating animal diets and
21agricultural chemicals.
22    Beginning on January 1, 2024, farm machinery and equipment
23also includes electrical power generation equipment used
24primarily for production agriculture.
25    This item (7) is exempt from the provisions of Section
263-55.

 

 

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1    (8) Until June 30, 2013, fuel and petroleum products sold
2to or used by an air common carrier, certified by the carrier
3to be used for consumption, shipment, or storage in the
4conduct of its business as an air common carrier, for a flight
5destined for or returning from a location or locations outside
6the United States without regard to previous or subsequent
7domestic stopovers.
8    Beginning July 1, 2013, fuel and petroleum products sold
9to or used by an air carrier, certified by the carrier to be
10used for consumption, shipment, or storage in the conduct of
11its business as an air common carrier, for a flight that (i) is
12engaged in foreign trade or is engaged in trade between the
13United States and any of its possessions and (ii) transports
14at least one individual or package for hire from the city of
15origination to the city of final destination on the same
16aircraft, without regard to a change in the flight number of
17that aircraft.
18    (9) Proceeds of mandatory service charges separately
19stated on customers' bills for the purchase and consumption of
20food and beverages, to the extent that the proceeds of the
21service charge are in fact turned over as tips or as a
22substitute for tips to the employees who participate directly
23in preparing, serving, hosting or cleaning up the food or
24beverage function with respect to which the service charge is
25imposed.
26    (10) Until July 1, 2003, oil field exploration, drilling,

 

 

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1and production equipment, including (i) rigs and parts of
2rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3pipe and tubular goods, including casing and drill strings,
4(iii) pumps and pump-jack units, (iv) storage tanks and flow
5lines, (v) any individual replacement part for oil field
6exploration, drilling, and production equipment, and (vi)
7machinery and equipment purchased for lease; but excluding
8motor vehicles required to be registered under the Illinois
9Vehicle Code.
10    (11) Photoprocessing machinery and equipment, including
11repair and replacement parts, both new and used, including
12that manufactured on special order, certified by the purchaser
13to be used primarily for photoprocessing, and including
14photoprocessing machinery and equipment purchased for lease.
15    (12) Until July 1, 2028, coal and aggregate exploration,
16mining, off-highway hauling, processing, maintenance, and
17reclamation equipment, including replacement parts and
18equipment, and including equipment purchased for lease, but
19excluding motor vehicles required to be registered under the
20Illinois Vehicle Code. The changes made to this Section by
21Public Act 97-767 apply on and after July 1, 2003, but no claim
22for credit or refund is allowed on or after August 16, 2013
23(the effective date of Public Act 98-456) for such taxes paid
24during the period beginning July 1, 2003 and ending on August
2516, 2013 (the effective date of Public Act 98-456).
26    (13) Beginning January 1, 1992 and through June 30, 2016,

 

 

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1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages,
3soft drinks and food that has been prepared for immediate
4consumption) and prescription and non-prescription medicines,
5drugs, medical appliances, and insulin, urine testing
6materials, syringes, and needles used by diabetics, for human
7use, when purchased for use by a person receiving medical
8assistance under Article V of the Illinois Public Aid Code who
9resides in a licensed long-term care facility, as defined in
10the Nursing Home Care Act, or in a licensed facility as defined
11in the ID/DD Community Care Act, the MC/DD Act, or the
12Specialized Mental Health Rehabilitation Act of 2013.
13    (14) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (15) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (15) is exempt from the
21provisions of Section 3-55, and the exemption provided for
22under this item (15) applies for all periods beginning May 30,
231995, but no claim for credit or refund is allowed on or after
24January 1, 2008 (the effective date of Public Act 95-88) for
25such taxes paid during the period beginning May 30, 2000 and
26ending on January 1, 2008 (the effective date of Public Act

 

 

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195-88).
2    (16) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients sold to a lessor
5who leases the equipment, under a lease of one year or longer
6executed or in effect at the time of the purchase, to a
7hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act.
10    (17) Personal property sold to a lessor who leases the
11property, under a lease of one year or longer executed or in
12effect at the time of the purchase, to a governmental body that
13has been issued an active tax exemption identification number
14by the Department under Section 1g of the Retailers'
15Occupation Tax Act.
16    (18) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is donated
19for disaster relief to be used in a State or federally declared
20disaster area in Illinois or bordering Illinois by a
21manufacturer or retailer that is registered in this State to a
22corporation, society, association, foundation, or institution
23that has been issued a sales tax exemption identification
24number by the Department that assists victims of the disaster
25who reside within the declared disaster area.
26    (19) Beginning with taxable years ending on or after

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in
3the performance of infrastructure repairs in this State,
4including but not limited to municipal roads and streets,
5access roads, bridges, sidewalks, waste disposal systems,
6water and sewer line extensions, water distribution and
7purification facilities, storm water drainage and retention
8facilities, and sewage treatment facilities, resulting from a
9State or federally declared disaster in Illinois or bordering
10Illinois when such repairs are initiated on facilities located
11in the declared disaster area within 6 months after the
12disaster.
13    (20) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" as that term is used
15in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-55.
17    (21) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the
21Department to be organized and operated exclusively for
22educational purposes. For purposes of this exemption, "a
23corporation, limited liability company, society, association,
24foundation, or institution organized and operated exclusively
25for educational purposes" means all tax-supported public
26schools, private schools that offer systematic instruction in

 

 

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1useful branches of learning by methods common to public
2schools and that compare favorably in their scope and
3intensity with the course of study presented in tax-supported
4schools, and vocational or technical schools or institutes
5organized and operated exclusively to provide a course of
6study of not less than 6 weeks duration and designed to prepare
7individuals to follow a trade or to pursue a manual,
8technical, mechanical, industrial, business, or commercial
9occupation.
10    (22) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-55.
24    (23) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and

 

 

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

 

 

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12016, tangible personal property purchased from an Illinois
2retailer by a taxpayer engaged in centralized purchasing
3activities in Illinois who will, upon receipt of the property
4in Illinois, temporarily store the property in Illinois (i)
5for the purpose of subsequently transporting it outside this
6State for use or consumption thereafter solely outside this
7State or (ii) for the purpose of being processed, fabricated,
8or manufactured into, attached to, or incorporated into other
9tangible personal property to be transported outside this
10State and thereafter used or consumed solely outside this
11State. The Director of Revenue shall, pursuant to rules
12adopted in accordance with the Illinois Administrative
13Procedure Act, issue a permit to any taxpayer in good standing
14with the Department who is eligible for the exemption under
15this paragraph (26). The permit issued under this paragraph
16(26) shall authorize the holder, to the extent and in the
17manner specified in the rules adopted under this Act, to
18purchase tangible personal property from a retailer exempt
19from the taxes imposed by this Act. Taxpayers shall maintain
20all necessary books and records to substantiate the use and
21consumption of all such tangible personal property outside of
22the State of Illinois.
23    (27) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued
2under Title IV of the Environmental Protection Act. This
3paragraph is exempt from the provisions of Section 3-55.
4    (28) Tangible personal property sold to a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt
13instruments issued by the public-facilities corporation in
14connection with the development of the municipal convention
15hall. This exemption includes existing public-facilities
16corporations as provided in Section 11-65-25 of the Illinois
17Municipal Code. This paragraph is exempt from the provisions
18of Section 3-55.
19    (29) Beginning January 1, 2010 and continuing through
20December 31, 2024, materials, parts, equipment, components,
21and furnishings incorporated into or upon an aircraft as part
22of the modification, refurbishment, completion, replacement,
23repair, or maintenance of the aircraft. This exemption
24includes consumable supplies used in the modification,
25refurbishment, completion, replacement, repair, and
26maintenance of aircraft, but excludes any materials, parts,

 

 

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1equipment, components, and consumable supplies used in the
2modification, replacement, repair, and maintenance of aircraft
3engines or power plants, whether such engines or power plants
4are installed or uninstalled upon any such aircraft.
5"Consumable supplies" include, but are not limited to,
6adhesive, tape, sandpaper, general purpose lubricants,
7cleaning solution, latex gloves, and protective films. This
8exemption applies only to the transfer of qualifying tangible
9personal property incident to the modification, refurbishment,
10completion, replacement, repair, or maintenance of an aircraft
11by persons who (i) hold an Air Agency Certificate and are
12empowered to operate an approved repair station by the Federal
13Aviation Administration, (ii) have a Class IV Rating, and
14(iii) conduct operations in accordance with Part 145 of the
15Federal Aviation Regulations. The exemption does not include
16aircraft operated by a commercial air carrier providing
17scheduled passenger air service pursuant to authority issued
18under Part 121 or Part 129 of the Federal Aviation
19Regulations. The changes made to this paragraph (29) by Public
20Act 98-534 are declarative of existing law. It is the intent of
21the General Assembly that the exemption under this paragraph
22(29) applies continuously from January 1, 2010 through
23December 31, 2024; however, no claim for credit or refund is
24allowed for taxes paid as a result of the disallowance of this
25exemption on or after January 1, 2015 and prior to February 5,
262020 (the effective date of Public Act 101-629) this

 

 

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1amendatory Act of the 101st General Assembly.
2    (30) Beginning January 1, 2017 and through December 31,
32026, menstrual pads, tampons, and menstrual cups.
4    (31) Tangible personal property transferred to a purchaser
5who is exempt from tax by operation of federal law. This
6paragraph is exempt from the provisions of Section 3-55.
7    (32) 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 this amendatory Act of the 101st
16General Assembly been in effect, may apply for and obtain an
17exemption for subsequent purchases of computer equipment or
18enabling software purchased or leased to upgrade, supplement,
19or replace computer equipment or enabling software purchased
20or leased in the original investment that would have
21qualified.
22    The Department of Commerce and Economic Opportunity shall
23grant a certificate of exemption under this item (32) to
24qualified data centers as defined by Section 605-1025 of the
25Department of Commerce and Economic Opportunity Law of the
26Civil Administrative Code of Illinois.

 

 

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

 

 

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1    property" also includes building materials physically
2    incorporated in to the qualifying data center. To document
3    the exemption allowed under this Section, the retailer
4    must obtain from the purchaser a copy of the certificate
5    of eligibility issued by the Department of Commerce and
6    Economic Opportunity.
7    This item (32) is exempt from the provisions of Section
83-55.
9    (33) Beginning July 1, 2022, breast pumps, breast pump
10collection and storage supplies, and breast pump kits. This
11item (33) is exempt from the provisions of Section 3-55. As
12used in this item (33):
13        "Breast pump" means an electrically controlled or
14    manually controlled pump device designed or marketed to be
15    used to express milk from a human breast during lactation,
16    including the pump device and any battery, AC adapter, or
17    other power supply unit that is used to power the pump
18    device and is packaged and sold with the pump device at the
19    time of sale.
20        "Breast pump collection and storage supplies" means
21    items of tangible personal property designed or marketed
22    to be used in conjunction with a breast pump to collect
23    milk expressed from a human breast and to store collected
24    milk until it is ready for consumption.
25        "Breast pump collection and storage supplies"
26    includes, but is not limited to: breast shields and breast

 

 

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

 

 

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1Unclaimed Property Act. This item (34) (33) is exempt from the
2provisions of Section 3-55.
3(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
570, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
675-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
7    Section 15-20. The Retailers' Occupation Tax Act is
8amended by changing Section 2-5 as follows:
 
9    (35 ILCS 120/2-5)
10    Sec. 2-5. Exemptions. Gross receipts from proceeds from
11the sale of the following tangible personal property are
12exempt from the tax imposed by this Act:
13        (1) Farm chemicals.
14        (2) Farm machinery and equipment, both new and used,
15    including that manufactured on special order, certified by
16    the purchaser to be used primarily for production
17    agriculture or State or federal agricultural programs,
18    including individual replacement parts for the machinery
19    and equipment, including machinery and equipment purchased
20    for lease, and including implements of husbandry defined
21    in Section 1-130 of the Illinois Vehicle Code, farm
22    machinery and agricultural chemical and fertilizer
23    spreaders, and nurse wagons required to be registered
24    under Section 3-809 of the Illinois Vehicle Code, but

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    kit that is pre-packaged by the breast pump manufacturer
2    or distributor.
3        "Breast pump kit" means a kit that: (1) contains no
4    more than a breast pump, breast pump collection and
5    storage supplies, a rechargeable battery for operating the
6    breast pump, a breastmilk cooler, bottle stands, ice
7    packs, and a breast pump carrying case; and (2) is
8    pre-packaged as a breast pump kit by the breast pump
9    manufacturer or distributor.
10        (47) (46) Tangible personal property sold by or on
11    behalf of the State Treasurer pursuant to the Revised
12    Uniform Unclaimed Property Act. This item (47) (46) is
13    exempt from the provisions of Section 2-70.
14(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
15101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
168-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
17102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
18eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
19
ARTICLE 20. PARKING EXCISE TAX

 
20    Section 20-5. The Parking Excise Tax Act is amended by
21changing Sections 10-5, 10-10, 10-15, 10-25, 10-30, 10-35,
2210-45, and 10-50 as follows:
 
23    (35 ILCS 525/10-5)

 

 

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1    (Text of Section before amendment by P.A. 102-700)
2    Sec. 10-5. Definitions.
3    "Booking intermediary" means any person or entity that
4facilitates the processing and fulfillment of reservation
5transactions between an operator and a person or entity
6desiring parking in a parking lot or garage of that operator.
7    "Charge or fee paid for parking" means the gross amount of
8consideration for the use or privilege of parking a motor
9vehicle in or upon any parking lot or garage in the State,
10collected by an operator and valued in money, whether received
11in money or otherwise, including cash, credits, property, and
12services, determined without any deduction for costs or
13expenses, but not including charges that are added to the
14charge or fee on account of the tax imposed by this Act or on
15account of any other tax imposed on the charge or fee. "Charge
16or fee paid for parking" excludes separately stated charges
17not for the use or privilege or parking and excludes amounts
18retained by or paid to a booking intermediary for services
19provided by the booking intermediary. If any separately stated
20charge is not optional, it shall be presumed that it is part of
21the charge for the use or privilege or parking.
22    "Department" means the Department of Revenue.
23    "Operator" means any person who engages in the business of
24operating a parking area or garage, or who, directly or
25through an agreement or arrangement with another party,
26collects the consideration for parking or storage of motor

 

 

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1vehicles, recreational vehicles, or other self-propelled
2vehicles, at that parking place. This includes, but is not
3limited to, any facilitator or aggregator that collects from
4the purchaser the charge or fee paid for parking. "Operator"
5does not include a bank, credit card company, payment
6processor, booking intermediary, or person whose involvement
7is limited to performing functions that are similar to those
8performed by a bank, credit card company, payment processor,
9or booking intermediary.
10    "Parking area or garage" means any real estate, building,
11structure, premises, enclosure or other place, whether
12enclosed or not, except a public way, within the State, where
13motor vehicles, recreational vehicles, or other self-propelled
14vehicles, are stored, housed or parked for hire, charge, fee
15or other valuable consideration in a condition ready for use,
16or where rent or compensation is paid to the owner, manager,
17operator or lessee of the premises for the housing, storing,
18sheltering, keeping or maintaining motor vehicles,
19recreational vehicles, or other self-propelled vehicles.
20"Parking area or garage" includes any parking area or garage,
21whether the vehicle is parked by the owner of the vehicle or by
22the operator or an attendant.
23    "Person" means any natural individual, firm, trust,
24estate, partnership, association, joint stock company, joint
25venture, corporation, limited liability company, or a
26receiver, trustee, guardian, or other representative appointed

 

 

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1by order of any court.
2    "Purchase price" means the consideration paid for the
3purchase of a parking space in a parking area or garage, valued
4in money, whether received in money or otherwise, including
5cash, gift cards, credits, and property, and shall be
6determined without any deduction on account of the cost of
7materials used, labor or service costs, or any other expense
8whatsoever.
9    "Purchase price" includes any and all charges that the
10recipient pays related to or incidental to obtaining the use
11or privilege of using a parking space in a parking area or
12garage, including but not limited to any and all related
13markups, service fees, convenience fees, facilitation fees,
14cancellation fees, overtime fees, or other such charges,
15regardless of terminology. However, "purchase price" shall not
16include consideration paid for:
17        (1) optional, separately stated charges not for the
18    use or privilege of using a parking space in the parking
19    area or garage;
20        (2) any charge for a dishonored check;
21        (3) any finance or credit charge, penalty or charge
22    for delayed payment, or discount for prompt payment;
23        (4) any purchase by a purchaser if the operator is
24    prohibited by federal or State Constitution, treaty,
25    convention, statute or court decision from collecting the
26    tax from such purchaser;

 

 

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1        (5) the isolated or occasional sale of parking spaces
2    subject to tax under this Act by a person who does not hold
3    himself out as being engaged (or who does not habitually
4    engage) in selling of parking spaces; and
5        (6) any amounts added to a purchaser's bills because
6    of charges made pursuant to the tax imposed by this Act. If
7    credit is extended, then the amount thereof shall be
8    included only as and when payments are made.
9    "Purchaser" means any person who acquires a parking space
10in a parking area or garage for use for valuable
11consideration.
12    "Use" means the exercise by any person of any right or
13power over, or the enjoyment of, a parking space in a parking
14area or garage subject to tax under this Act.
15(Source: P.A. 101-31, eff. 6-28-19.)
 
16    (Text of Section after amendment by P.A. 102-700)
17    Sec. 10-5. Definitions. As used in this Act:
18    "Booking intermediary" means any person or entity that
19facilitates the processing and fulfillment of reservation
20transactions between an operator and a person or entity
21desiring parking in a parking lot or garage of that operator.
22    "Department" means the Department of Revenue.
23    "Operator" means any person who engages in the business of
24operating a parking area or garage, or who, directly or
25through an agreement or arrangement with another party,

 

 

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1collects the consideration for parking or storage of motor
2vehicles, recreational vehicles, or other self-propelled
3vehicles, at that parking place. This includes, but is not
4limited to, any facilitator or aggregator that collects the
5purchase price from the purchaser. "Operator" does not include
6a bank, credit card company, payment processor, booking
7intermediary (except to the extent a booking intermediary is
8required to be registered under Section 10-30 or as otherwise
9provided in this Act), or person whose involvement is limited
10to performing functions that are similar to those performed by
11a bank, credit card company, or payment processor, or booking
12intermediary.
13    "Parking area or garage" means any real estate, building,
14structure, premises, enclosure or other place, whether
15enclosed or not, except a public way, within the State, where
16motor vehicles, recreational vehicles, or other self-propelled
17vehicles, are stored, housed or parked for hire, charge, fee
18or other valuable consideration in a condition ready for use,
19or where rent or compensation is paid to the owner, manager,
20operator or lessee of the premises for the housing, storing,
21sheltering, keeping or maintaining motor vehicles,
22recreational vehicles, or other self-propelled vehicles.
23"Parking area or garage" includes any parking area or garage,
24whether the vehicle is parked by the owner of the vehicle or by
25the operator or an attendant.
26    "Person" means any natural individual, firm, trust,

 

 

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1estate, partnership, association, joint stock company, joint
2venture, corporation, limited liability company, or a
3receiver, trustee, guardian, or other representative appointed
4by order of any court.
5    "Purchase price" means the consideration paid for the
6purchase of a parking space in a parking area or garage, valued
7in money, whether received in money or otherwise, including
8cash, gift cards, credits, and property, and shall be
9determined without any deduction on account of the cost of
10materials used, labor or service costs, or any other expense
11whatsoever.
12    "Purchase price" includes any and all charges that the
13recipient pays related to or incidental to obtaining the use
14or privilege of using a parking space in a parking area or
15garage, including but not limited to any and all related
16markups, service fees, convenience fees, facilitation fees,
17cancellation fees, overtime fees, or other such charges,
18regardless of terminology. However, "purchase price" shall not
19include consideration paid for:
20        (1) optional, separately stated charges not for the
21    use or privilege of using a parking space in the parking
22    area or garage;
23        (2) any charge for a dishonored check;
24        (3) any finance or credit charge, penalty or charge
25    for delayed payment, or discount for prompt payment;
26        (4) any purchase by a purchaser if the operator is

 

 

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1    prohibited by federal or State Constitution, treaty,
2    convention, statute or court decision from collecting the
3    tax from such purchaser;
4        (5) the isolated or occasional sale of parking spaces
5    subject to tax under this Act by a person who does not hold
6    himself out as being engaged (or who does not habitually
7    engage) in selling of parking spaces; and
8        (6) any amounts added to a purchaser's bills because
9    of charges made pursuant to the tax imposed by this Act. If
10    credit is extended, then the amount thereof shall be
11    included only as and when payments are made.
12    "Purchaser" means any person who acquires a parking space
13in a parking area or garage for use for valuable
14consideration.
15    "Use" means the exercise by any person of any right or
16power over, or the enjoyment of, a parking space in a parking
17area or garage subject to tax under this Act.
18(Source: P.A. 101-31, eff. 6-28-19; 102-700, eff. 7-1-23.)
 
19    (35 ILCS 525/10-10)
20    Sec. 10-10. Imposition of tax; calculation of tax.
21    (a) Beginning on January 1, 2020, a tax is imposed on the
22privilege of using in this State a parking space in a parking
23area or garage for the use of parking one or more motor
24vehicles, recreational vehicles, or other self-propelled
25vehicles, at the rate of:

 

 

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1        (1) 6% of the purchase price for a parking space paid
2    for on an hourly, daily, or weekly basis; and
3        (2) 9% of the purchase price for a parking space paid
4    for on a monthly or annual basis.
5    (b) The tax shall be collected from the purchaser by the
6operator. Notwithstanding the provisions of this subsection,
7beginning on January 1, 2024, if a booking intermediary
8facilitates the processing and fulfillment of the reservation
9for an operator that is not registered under Section 10-30,
10then the tax shall be collected on the purchase price from the
11purchaser by the booking intermediary on behalf of the
12operator, and the tax shall be remitted to the Department by
13the booking intermediary. The booking intermediary that
14facilitates the processing and fulfillment of the reservation
15for an operator that is not registered under Section 10-30 and
16the unregistered operator are jointly and severally liable for
17payment of the tax to the Department.
18    (b-5) Booking intermediaries shall collect the tax on the
19purchase price paid by purchasers on behalf of registered
20operators. If a booking intermediary charges a separate
21service charge that is included in the purchase price, the tax
22shall be collected on that separate service charge as well,
23even if the separate service charge is retained by the booking
24intermediary. Beginning January 1, 2024, booking
25intermediaries are liable for and shall remit the tax to the
26Department on any separately stated service fee that the

 

 

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1booking intermediary charges to the customer. Operators are
2liable for the remittance of tax under this Act on the
3remainder of the purchase price for the transaction. Booking
4intermediaries and operators are subject to audit on all such
5sales.
6    (c) An operator that has paid or remitted the tax imposed
7by this Act to another operator in connection with the same
8parking transaction, or the use of the same parking space,
9that is subject to tax under this Act, shall be entitled to a
10credit for such tax paid or remitted against the amount of tax
11owed under this Act, provided that the other operator is
12registered under this Act. The operator claiming the credit
13shall have the burden of proving it is entitled to claim a
14credit.
15    (d) If any operator or booking intermediary erroneously
16collects tax or collects more from the purchaser than the
17purchaser's liability for the transaction, the purchaser shall
18have a legal right to claim a refund of such amount from the
19operator or booking intermediary. However, if such amount is
20not refunded to the purchaser for any reason, the operator or
21booking intermediary is liable to pay such amount to the
22Department.
23    (e) The tax imposed by this Section is not imposed with
24respect to any transaction in interstate commerce, to the
25extent that the transaction may not, under the Constitution
26and statutes of the United States, be made the subject of

 

 

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1taxation by this State.
2(Source: P.A. 101-31, eff. 6-28-19.)
 
3    (35 ILCS 525/10-15)
4    Sec. 10-15. Filing of returns and deposit of proceeds. On
5or before the last day of each calendar month, every operator
6engaged in the business of providing to purchasers parking
7areas and garages in this State during the preceding calendar
8month and every booking intermediary required to collect tax
9under Section 10-10 shall file a return with the Department,
10stating:
11        (1) the name of the operator or booking intermediary;
12        (2) the address of its principal place of business
13    and, if applicable, the address of the principal place of
14    business from which it provides parking areas and garages
15    in this State;
16        (3) the total amount of receipts received by the
17    operator during the preceding calendar month or quarter,
18    as the case may be, from sales of parking spaces to
19    purchasers in parking areas or garages during the
20    preceding calendar month or quarter; th