SB3476 EnrolledLRB103 34190 HLH 64013 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    (Text of Section before amendment by P.A. 103-384)
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
16purpose of resale by the enterprise.
17    (2) Personal property purchased by a not-for-profit
18Illinois county fair association for use in conducting,
19operating, or promoting the county fair.
20    (3) Personal property purchased by a not-for-profit arts
21or cultural organization that establishes, by proof required
22by the Department by rule, that it has received an exemption
23under 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) Personal property purchased by a governmental body, by
13a corporation, society, association, foundation, or
14institution organized and operated exclusively for charitable,
15religious, or educational purposes, or by a not-for-profit
16corporation, society, association, foundation, institution, or
17organization that has no compensated officers or employees and
18that is organized and operated primarily for the recreation of
19persons 55 years of age or older. A limited liability company
20may qualify for the exemption under this paragraph only if the
21limited liability company is organized and operated
22exclusively for educational purposes. On and after July 1,
231987, however, no entity otherwise eligible for this exemption
24shall make tax-free purchases unless it has an active
25exemption identification number issued by the Department.
26    (5) Until July 1, 2003, a passenger car that is a

 

 

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1replacement vehicle to the extent that the purchase price of
2the car is subject to the Replacement Vehicle Tax.
3    (6) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new
6and used, and including that manufactured on special order,
7certified by the purchaser to be used primarily for graphic
8arts production, and including machinery and equipment
9purchased for lease. Equipment includes chemicals or chemicals
10acting as catalysts but only if the chemicals or chemicals
11acting as catalysts effect a direct and immediate change upon
12a graphic arts product. Beginning on July 1, 2017, graphic
13arts machinery and equipment is included in the manufacturing
14and assembling machinery and equipment exemption under
15paragraph (18).
16    (7) Farm chemicals.
17    (8) 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    (9) Personal property purchased from a teacher-sponsored
22student organization affiliated with an elementary or
23secondary school located in Illinois.
24    (10) A motor vehicle that is used for automobile renting,
25as defined in the Automobile Renting Occupation and Use Tax
26Act.

 

 

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

 

 

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1such equipment.
2    Farm machinery and equipment also includes computers,
3sensors, software, and related equipment used primarily in the
4computer-assisted operation of production agriculture
5facilities, equipment, and activities such as, but not limited
6to, the collection, monitoring, and correlation of animal and
7crop data for the purpose of formulating animal diets and
8agricultural chemicals.
9    Beginning on January 1, 2024, farm machinery and equipment
10also includes electrical power generation equipment used
11primarily for production agriculture.
12    This item (11) is exempt from the provisions of Section
133-90.
14    (12) 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    (13) Proceeds of mandatory service charges separately
6stated on customers' bills for the purchase and consumption of
7food and beverages purchased at retail from a retailer, to the
8extent that the proceeds of the service charge are in fact
9turned over as tips or as a substitute for tips to the
10employees who participate directly in preparing, serving,
11hosting or cleaning up the food or beverage function with
12respect to which the service charge is imposed.
13    (14) Until July 1, 2003, oil field exploration, drilling,
14and production equipment, including (i) rigs and parts of
15rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
16pipe and tubular goods, including casing and drill strings,
17(iii) pumps and pump-jack units, (iv) storage tanks and flow
18lines, (v) any individual replacement part for oil field
19exploration, drilling, and production equipment, and (vi)
20machinery and equipment purchased for lease; but excluding
21motor vehicles required to be registered under the Illinois
22Vehicle Code.
23    (15) Photoprocessing machinery and equipment, including
24repair and replacement parts, both new and used, including
25that manufactured on special order, certified by the purchaser
26to be used primarily for photoprocessing, and including

 

 

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1photoprocessing machinery and equipment purchased for lease.
2    (16) Until July 1, 2028, coal and aggregate exploration,
3mining, off-highway hauling, processing, maintenance, and
4reclamation equipment, including replacement parts and
5equipment, and including equipment purchased for lease, but
6excluding motor vehicles required to be registered under the
7Illinois Vehicle Code. The changes made to this Section by
8Public Act 97-767 apply on and after July 1, 2003, but no claim
9for credit or refund is allowed on or after August 16, 2013
10(the effective date of Public Act 98-456) for such taxes paid
11during the period beginning July 1, 2003 and ending on August
1216, 2013 (the effective date of Public Act 98-456).
13    (17) Until July 1, 2003, distillation machinery and
14equipment, sold as a unit or kit, assembled or installed by the
15retailer, certified by the user to be used only for the
16production of ethyl alcohol that will be used for consumption
17as motor fuel or as a component of motor fuel for the personal
18use of the user, and not subject to sale or resale.
19    (18) Manufacturing and assembling machinery and equipment
20used primarily in the process of manufacturing or assembling
21tangible personal property for wholesale or retail sale or
22lease, whether that sale or lease is made directly by the
23manufacturer or by some other person, whether the materials
24used in the process are owned by the manufacturer or some other
25person, or whether that sale or lease is made apart from or as
26an incident to the seller's engaging in the service occupation

 

 

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1of producing machines, tools, dies, jigs, patterns, gauges, or
2other similar items of no commercial value on special order
3for a particular purchaser. The exemption provided by this
4paragraph (18) includes production related tangible personal
5property, as defined in Section 3-50, purchased on or after
6July 1, 2019. The exemption provided by this paragraph (18)
7does not include machinery and equipment used in (i) the
8generation of electricity for wholesale or retail sale; (ii)
9the generation or treatment of natural or artificial gas for
10wholesale or retail sale that is delivered to customers
11through pipes, pipelines, or mains; or (iii) the treatment of
12water for wholesale or retail sale that is delivered to
13customers through pipes, pipelines, or mains. The provisions
14of Public Act 98-583 are declaratory of existing law as to the
15meaning and scope of this exemption. Beginning on July 1,
162017, the exemption provided by this paragraph (18) includes,
17but is not limited to, graphic arts machinery and equipment,
18as defined in paragraph (6) of this Section.
19    (19) Personal property delivered to a purchaser or
20purchaser's donee inside Illinois when the purchase order for
21that personal property was received by a florist located
22outside Illinois who has a florist located inside Illinois
23deliver the personal property.
24    (20) Semen used for artificial insemination of livestock
25for direct agricultural production.
26    (21) 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 (21) is exempt from the
6provisions of Section 3-90, and the exemption provided for
7under this item (21) applies for all periods beginning May 30,
81995, but no claim for credit or refund is allowed on or after
9January 1, 2008 for such taxes paid during the period
10beginning May 30, 2000 and ending on January 1, 2008.
11    (22) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients purchased by a
14lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time the lessor would
16otherwise be subject to the tax imposed by this Act, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. If the equipment is leased
20in a manner that does not qualify for this exemption or is used
21in any other non-exempt manner, the lessor shall be liable for
22the tax imposed under this Act or the Service Use Tax Act, as
23the case may be, based on the fair market value of the property
24at the time the non-qualifying use occurs. No lessor shall
25collect or attempt to collect an amount (however designated)
26that purports to reimburse that lessor for the tax imposed by

 

 

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1this Act or the Service Use Tax Act, as the case may be, if the
2tax has not been paid by the lessor. If a lessor improperly
3collects any such amount from the lessee, the lessee shall
4have a legal right to claim a refund of that amount from the
5lessor. If, however, that amount is not refunded to the lessee
6for any reason, the lessor is liable to pay that amount to the
7Department.
8    (23) Personal property purchased by a lessor who leases
9the property, under a lease of one year or longer executed or
10in effect at the time the lessor would otherwise be subject to
11the tax imposed by this Act, to a governmental body that has
12been issued an active sales tax exemption identification
13number by the Department under Section 1g of the Retailers'
14Occupation Tax Act. If the property is leased in a manner that
15does not qualify for this exemption or used in any other
16non-exempt manner, the lessor shall be liable for the tax
17imposed under this Act or the Service Use Tax Act, as the case
18may be, based on the fair market value of the property at the
19time the non-qualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has 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.
3    (24) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is donated
6for disaster relief to be used in a State or federally declared
7disaster area in Illinois or bordering Illinois by a
8manufacturer or retailer that is registered in this State to a
9corporation, society, association, foundation, or institution
10that has been issued a sales tax exemption identification
11number by the Department that assists victims of the disaster
12who reside within the declared disaster area.
13    (25) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is used in
16the performance of infrastructure repairs in this State,
17including, but not limited to, municipal roads and streets,
18access roads, bridges, sidewalks, waste disposal systems,
19water and sewer line extensions, water distribution and
20purification facilities, storm water drainage and retention
21facilities, and sewage treatment facilities, resulting from a
22State or federally declared disaster in Illinois or bordering
23Illinois when such repairs are initiated on facilities located
24in the declared disaster area within 6 months after the
25disaster.
26    (26) Beginning July 1, 1999, game or game birds purchased

 

 

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1at a "game breeding and hunting preserve area" as that term is
2used in the Wildlife Code. This paragraph is exempt from the
3provisions of Section 3-90.
4    (27) A motor vehicle, as that term is defined in Section
51-146 of the Illinois Vehicle Code, that is donated to a
6corporation, limited liability company, society, association,
7foundation, or institution that is determined by the
8Department to be organized and operated exclusively for
9educational purposes. For purposes of this exemption, "a
10corporation, limited liability company, society, association,
11foundation, or institution organized and operated exclusively
12for educational purposes" means all tax-supported public
13schools, private schools that offer systematic instruction in
14useful branches of learning by methods common to public
15schools and that compare favorably in their scope and
16intensity with the course of study presented in tax-supported
17schools, and vocational or technical schools or institutes
18organized and operated exclusively to provide a course of
19study of not less than 6 weeks duration and designed to prepare
20individuals to follow a trade or to pursue a manual,
21technical, mechanical, industrial, business, or commercial
22occupation.
23    (28) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-90.
11    (29) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and
14other items, and replacement parts for these machines.
15Beginning January 1, 2002 and through June 30, 2003, machines
16and parts for machines used in commercial, coin-operated
17amusement and vending business if a use or occupation tax is
18paid on the gross receipts derived from the use of the
19commercial, coin-operated amusement and vending machines. This
20paragraph is exempt from the provisions of Section 3-90.
21    (30) Beginning January 1, 2001 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages,
24soft drinks, and food that has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

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

 

 

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1collects any such amount from the lessee, the lessee shall
2have a legal right to claim a refund of that amount from the
3lessor. If, however, that amount is not refunded to the lessee
4for any reason, the lessor is liable to pay that amount to the
5Department. This paragraph is exempt from the provisions of
6Section 3-90.
7    (32) Beginning on August 2, 2001 (the effective date of
8Public Act 92-227), personal property purchased by a lessor
9who leases the property, under a lease of one year or longer
10executed or in effect at the time the lessor would otherwise be
11subject to the tax imposed by this Act, to a governmental body
12that has been issued an active sales tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the property is leased
15in a manner that does not qualify for this exemption or used in
16any other nonexempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Service Use Tax Act, as the
18case may be, based on the fair market value of the property at
19the time the nonqualifying use occurs. No lessor shall collect
20or attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has 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    (33) On and after July 1, 2003 and through June 30, 2004,
5the use in this State of motor vehicles of the second division
6with a gross vehicle weight in excess of 8,000 pounds and that
7are subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code. Beginning on
9July 1, 2004 and through June 30, 2005, the use in this State
10of motor vehicles of the second division: (i) with a gross
11vehicle weight rating in excess of 8,000 pounds; (ii) that are
12subject to the commercial distribution fee imposed under
13Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
14are primarily used for commercial purposes. Through June 30,
152005, this exemption applies to repair and replacement parts
16added after the initial purchase of such a motor vehicle if
17that motor vehicle is used in a manner that would qualify for
18the rolling stock exemption otherwise provided for in this
19Act. For purposes of this paragraph, the term "used for
20commercial purposes" means the transportation of persons or
21property in furtherance of any commercial or industrial
22enterprise, whether for-hire or not.
23    (34) 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 3-90.
4    (35) Beginning January 1, 2010 and continuing through
5December 31, 2029, materials, parts, equipment, components,
6and furnishings incorporated into or upon an aircraft as part
7of the modification, refurbishment, completion, replacement,
8repair, or maintenance of the aircraft. This exemption
9includes consumable supplies used in the modification,
10refurbishment, completion, replacement, repair, and
11maintenance of aircraft. However, until January 1, 2024, this
12exemption excludes any materials, parts, equipment,
13components, and consumable supplies used in the modification,
14replacement, repair, and maintenance of aircraft engines or
15power plants, whether such engines or power plants are
16installed or uninstalled upon any such aircraft. "Consumable
17supplies" include, but are not limited to, adhesive, tape,
18sandpaper, general purpose lubricants, cleaning solution,
19latex gloves, and protective films.
20    Beginning January 1, 2010 and continuing through December
2131, 2023, this exemption applies only to the use of qualifying
22tangible personal property by persons who modify, refurbish,
23complete, repair, replace, or maintain aircraft and who (i)
24hold an Air Agency Certificate and are empowered to operate an
25approved repair station by the Federal Aviation
26Administration, (ii) have a Class IV Rating, and (iii) conduct

 

 

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1operations in accordance with Part 145 of the Federal Aviation
2Regulations. From January 1, 2024 through December 31, 2029,
3this exemption applies only to the use of qualifying tangible
4personal property by: (A) persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations; and (B) persons who engage in the modification,
11replacement, repair, and maintenance of aircraft engines or
12power plants without regard to whether or not those persons
13meet the qualifications of item (A).
14    The exemption does not include aircraft operated by a
15commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part
17129 of the Federal Aviation Regulations. The changes made to
18this paragraph (35) by Public Act 98-534 are declarative of
19existing law. It is the intent of the General Assembly that the
20exemption under this paragraph (35) applies continuously from
21January 1, 2010 through December 31, 2024; however, no claim
22for credit or refund is allowed for taxes paid as a result of
23the disallowance of this exemption on or after January 1, 2015
24and prior to February 5, 2020 (the effective date of Public Act
25101-629).
26    (36) Tangible personal property purchased by a

 

 

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1public-facilities corporation, as described in Section
211-65-10 of the Illinois Municipal Code, for purposes of
3constructing or furnishing a municipal convention hall, but
4only if the legal title to the municipal convention hall is
5transferred to the municipality without any further
6consideration by or on behalf of the municipality at the time
7of the completion of the municipal convention hall or upon the
8retirement or redemption of any bonds or other debt
9instruments issued by the public-facilities corporation in
10connection with the development of the municipal convention
11hall. This exemption includes existing public-facilities
12corporations as provided in Section 11-65-25 of the Illinois
13Municipal Code. This paragraph is exempt from the provisions
14of Section 3-90.
15    (37) Beginning January 1, 2017 and through December 31,
162026, menstrual pads, tampons, and menstrual cups.
17    (38) Merchandise that is subject to the Rental Purchase
18Agreement Occupation and Use Tax. The purchaser must certify
19that the item is purchased to be rented subject to a
20rental-purchase rental purchase agreement, as defined in the
21Rental-Purchase Rental Purchase Agreement Act, and provide
22proof of registration under the Rental Purchase Agreement
23Occupation and Use Tax Act. This paragraph is exempt from the
24provisions of Section 3-90.
25    (39) Tangible personal property purchased by a purchaser
26who is exempt from the tax imposed by this Act by operation of

 

 

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1federal law. This paragraph is exempt from the provisions of
2Section 3-90.
3    (40) Qualified tangible personal property used in the
4construction or operation of a data center that has been
5granted a certificate of exemption by the Department of
6Commerce and Economic Opportunity, whether that tangible
7personal property is purchased by the owner, operator, or
8tenant of the data center or by a contractor or subcontractor
9of the owner, operator, or tenant. Data centers that would
10have qualified for a certificate of exemption prior to January
111, 2020 had Public Act 101-31 been in effect may apply for and
12obtain an exemption for subsequent purchases of computer
13equipment or enabling software purchased or leased to upgrade,
14supplement, or replace computer equipment or enabling software
15purchased or leased in the original investment that would have
16qualified.
17    The Department of Commerce and Economic Opportunity shall
18grant a certificate of exemption under this item (40) to
19qualified data centers as defined by Section 605-1025 of the
20Department of Commerce and Economic Opportunity Law of the
21Civil Administrative Code of Illinois.
22    For the purposes of this item (40):
23        "Data center" means a building or a series of
24    buildings rehabilitated or constructed to house working
25    servers in one physical location or multiple sites within
26    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; cabinets;
7    telecommunications cabling infrastructure; raised floor
8    systems; peripheral components or systems; software;
9    mechanical, electrical, or plumbing systems; battery
10    systems; cooling systems and towers; temperature control
11    systems; other cabling; and other data center
12    infrastructure equipment and systems necessary to operate
13    qualified tangible personal property, including fixtures;
14    and component parts of any of the foregoing, including
15    installation, maintenance, repair, refurbishment, and
16    replacement of qualified tangible personal property to
17    generate, transform, transmit, distribute, or manage
18    electricity necessary to operate qualified tangible
19    personal property; and all other tangible personal
20    property that is essential to the operations of a computer
21    data center. The term "qualified tangible personal
22    property" also includes building materials physically
23    incorporated into in to the qualifying data center. To
24    document the exemption allowed under this Section, the
25    retailer must obtain from the purchaser a copy of the
26    certificate of eligibility issued by the Department of

 

 

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1    Commerce and Economic Opportunity.
2    This item (40) is exempt from the provisions of Section
33-90.
4    (41) Beginning July 1, 2022, breast pumps, breast pump
5collection and storage supplies, and breast pump kits. This
6item (41) is exempt from the provisions of Section 3-90. As
7used in this item (41):
8        "Breast pump" means an electrically controlled or
9    manually controlled pump device designed or marketed to be
10    used to express milk from a human breast during lactation,
11    including the pump device and any battery, AC adapter, or
12    other power supply unit that is used to power the pump
13    device and is packaged and sold with the pump device at the
14    time of sale.
15        "Breast pump collection and storage supplies" means
16    items of tangible personal property designed or marketed
17    to be used in conjunction with a breast pump to collect
18    milk expressed from a human breast and to store collected
19    milk until it is ready for consumption.
20        "Breast pump collection and storage supplies"
21    includes, but is not limited to: breast shields and breast
22    shield connectors; breast pump tubes and tubing adapters;
23    breast pump valves and membranes; backflow protectors and
24    backflow protector adaptors; bottles and bottle caps
25    specific to the operation of the breast pump; and breast
26    milk storage bags.

 

 

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1        "Breast pump collection and storage supplies" does not
2    include: (1) bottles and bottle caps not specific to the
3    operation of the breast pump; (2) breast pump travel bags
4    and other similar carrying accessories, including ice
5    packs, labels, and other similar products; (3) breast pump
6    cleaning supplies; (4) nursing bras, bra pads, breast
7    shells, and other similar products; and (5) creams,
8    ointments, and other similar products that relieve
9    breastfeeding-related symptoms or conditions of the
10    breasts or nipples, unless sold as part of a breast pump
11    kit that is pre-packaged by the breast pump manufacturer
12    or distributor.
13        "Breast pump kit" means a kit that: (1) contains no
14    more than a breast pump, breast pump collection and
15    storage supplies, a rechargeable battery for operating the
16    breast pump, a breastmilk cooler, bottle stands, ice
17    packs, and a breast pump carrying case; and (2) is
18    pre-packaged as a breast pump kit by the breast pump
19    manufacturer or distributor.
20    (42) Tangible personal property sold by or on behalf of
21the State Treasurer pursuant to the Revised Uniform Unclaimed
22Property Act. This item (42) is exempt from the provisions of
23Section 3-90.
24(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
25Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
26eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,

 

 

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1Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
2eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-12-23.)
 
3    (Text of Section after amendment by P.A. 103-384)
4    Sec. 3-5. Exemptions. Use of the following tangible
5personal property is exempt from the tax imposed by this Act:
6    (1) Personal property purchased from a corporation,
7society, association, foundation, institution, or
8organization, other than a limited liability company, that is
9organized and operated as a not-for-profit service enterprise
10for the benefit of persons 65 years of age or older if the
11personal property was not purchased by the enterprise for the
12purpose of resale by the enterprise.
13    (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16    (3) Personal property purchased by a not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service
25organizations, local arts councils, visual arts organizations,

 

 

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1and media arts organizations. On and after July 1, 2001 (the
2effective date of Public Act 92-35), however, an entity
3otherwise eligible for this exemption shall not make tax-free
4purchases unless it has an active identification number issued
5by the Department.
6    (4) Except as otherwise provided in this Act, personal
7property purchased by a governmental body, by a corporation,
8society, association, foundation, or institution organized and
9operated exclusively for charitable, religious, or educational
10purposes, or by a not-for-profit corporation, society,
11association, foundation, institution, or organization that has
12no compensated officers or employees and that is organized and
13operated primarily for the recreation of persons 55 years of
14age or older. A limited liability company may qualify for the
15exemption under this paragraph only if the limited liability
16company is organized and operated exclusively for educational
17purposes. On and after July 1, 1987, however, no entity
18otherwise eligible for this exemption shall make tax-free
19purchases unless it has an active exemption identification
20number issued by the Department.
21    (5) Until July 1, 2003, a passenger car that is a
22replacement vehicle to the extent that the purchase price of
23the car is subject to the Replacement Vehicle Tax.
24    (6) Until July 1, 2003 and beginning again on September 1,
252004 through August 30, 2014, graphic arts machinery and
26equipment, including repair and replacement parts, both new

 

 

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1and used, and including that manufactured on special order,
2certified by the purchaser to be used primarily for graphic
3arts production, and including machinery and equipment
4purchased for lease. Equipment includes chemicals or chemicals
5acting as catalysts but only if the chemicals or chemicals
6acting as catalysts effect a direct and immediate change upon
7a graphic arts product. Beginning on July 1, 2017, graphic
8arts machinery and equipment is included in the manufacturing
9and assembling machinery and equipment exemption under
10paragraph (18).
11    (7) Farm chemicals.
12    (8) 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    (9) Personal property purchased from a teacher-sponsored
17student organization affiliated with an elementary or
18secondary school located in Illinois.
19    (10) A motor vehicle that is used for automobile renting,
20as defined in the Automobile Renting Occupation and Use Tax
21Act.
22    (11) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or
25State or federal agricultural programs, including individual
26replacement parts for the machinery and equipment, including

 

 

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

 

 

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1to, the collection, monitoring, and correlation of animal and
2crop data for the purpose of formulating animal diets and
3agricultural chemicals.
4    Beginning on January 1, 2024, farm machinery and equipment
5also includes electrical power generation equipment used
6primarily for production agriculture.
7    This item (11) is exempt from the provisions of Section
83-90.
9    (12) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (13) Proceeds of mandatory service charges separately

 

 

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

 

 

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1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8    (17) Until July 1, 2003, distillation machinery and
9equipment, sold as a unit or kit, assembled or installed by the
10retailer, certified by the user to be used only for the
11production of ethyl alcohol that will be used for consumption
12as motor fuel or as a component of motor fuel for the personal
13use of the user, and not subject to sale or resale.
14    (18) Manufacturing and assembling machinery and equipment
15used primarily in the process of manufacturing or assembling
16tangible personal property for wholesale or retail sale or
17lease, whether that sale or lease is made directly by the
18manufacturer or by some other person, whether the materials
19used in the process are owned by the manufacturer or some other
20person, or whether that sale or lease is made apart from or as
21an incident to the seller's engaging in the service occupation
22of producing machines, tools, dies, jigs, patterns, gauges, or
23other similar items of no commercial value on special order
24for a particular purchaser. The exemption provided by this
25paragraph (18) includes production related tangible personal
26property, as defined in Section 3-50, purchased on or after

 

 

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1July 1, 2019. The exemption provided by this paragraph (18)
2does not include machinery and equipment used in (i) the
3generation of electricity for wholesale or retail sale; (ii)
4the generation or treatment of natural or artificial gas for
5wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions
9of Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption. Beginning on July 1,
112017, the exemption provided by this paragraph (18) includes,
12but is not limited to, graphic arts machinery and equipment,
13as defined in paragraph (6) of this Section.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the

 

 

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1provisions of Section 3-90, and the exemption provided for
2under this item (21) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 for such taxes paid during the period
5beginning May 30, 2000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other non-exempt 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 non-qualifying 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.
3    (23) Personal property purchased by a lessor who leases
4the property, under a lease of one year or longer executed or
5in effect at the time the lessor would otherwise be subject to
6the tax imposed by this Act, to a governmental body that has
7been issued an active sales tax exemption identification
8number by the Department under Section 1g of the Retailers'
9Occupation Tax Act. If the property is leased in a manner that
10does not qualify for this exemption or used in any other
11non-exempt manner, the lessor shall be liable for the tax
12imposed under this Act or the Service Use Tax Act, as the case
13may be, based on the fair market value of the property at the
14time the non-qualifying 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 Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department.
24    (24) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated

 

 

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (25) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including, but not limited to, municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

SB3476 Enrolled- 35 -LRB103 34190 HLH 64013 b

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

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-90.
6    (29) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-90.
16    (30) Beginning January 1, 2001 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19soft drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or in a licensed facility as defined

 

 

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

 

 

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1Section 3-90.
2    (32) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), personal property purchased by a lessor
4who leases the property, under a lease of one year or longer
5executed or in effect at the time the lessor would otherwise be
6subject to the tax imposed by this Act, to a governmental body
7that has been issued an active sales tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the property is leased
10in a manner that does not qualify for this exemption or used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Service Use Tax Act, as the
13case may be, based on the fair market value of the property at
14the time the nonqualifying use occurs. No lessor shall collect
15or attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-90.
25    (33) On and after July 1, 2003 and through June 30, 2004,
26the use in this State of motor vehicles of the second division

 

 

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1with a gross vehicle weight in excess of 8,000 pounds and that
2are subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4July 1, 2004 and through June 30, 2005, the use in this State
5of motor vehicles of the second division: (i) with a gross
6vehicle weight rating in excess of 8,000 pounds; (ii) that are
7subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9are primarily used for commercial purposes. Through June 30,
102005, this exemption applies to repair and replacement parts
11added after the initial purchase of such a motor vehicle if
12that motor vehicle is used in a manner that would qualify for
13the rolling stock exemption otherwise provided for in this
14Act. For purposes of this paragraph, the term "used for
15commercial purposes" means the transportation of persons or
16property in furtherance of any commercial or industrial
17enterprise, whether for-hire or not.
18    (34) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-90.
25    (35) Beginning January 1, 2010 and continuing through
26December 31, 2029, materials, parts, equipment, components,

 

 

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1and furnishings incorporated into or upon an aircraft as part
2of the modification, refurbishment, completion, replacement,
3repair, or maintenance of the aircraft. This exemption
4includes consumable supplies used in the modification,
5refurbishment, completion, replacement, repair, and
6maintenance of aircraft. However, until January 1, 2024, this
7exemption excludes any materials, parts, equipment,
8components, and consumable supplies used in the modification,
9replacement, repair, and maintenance of aircraft engines or
10power plants, whether such engines or power plants are
11installed or uninstalled upon any such aircraft. "Consumable
12supplies" include, but are not limited to, adhesive, tape,
13sandpaper, general purpose lubricants, cleaning solution,
14latex gloves, and protective films.
15    Beginning January 1, 2010 and continuing through December
1631, 2023, this exemption applies only to the use of qualifying
17tangible personal property by persons who modify, refurbish,
18complete, repair, replace, or maintain aircraft and who (i)
19hold an Air Agency Certificate and are empowered to operate an
20approved repair station by the Federal Aviation
21Administration, (ii) have a Class IV Rating, and (iii) conduct
22operations in accordance with Part 145 of the Federal Aviation
23Regulations. From January 1, 2024 through December 31, 2029,
24this exemption applies only to the use of qualifying tangible
25personal property by: (A) persons who modify, refurbish,
26complete, repair, replace, or maintain aircraft and who (i)

 

 

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1hold an Air Agency Certificate and are empowered to operate an
2approved repair station by the Federal Aviation
3Administration, (ii) have a Class IV Rating, and (iii) conduct
4operations in accordance with Part 145 of the Federal Aviation
5Regulations; and (B) persons who engage in the modification,
6replacement, repair, and maintenance of aircraft engines or
7power plants without regard to whether or not those persons
8meet the qualifications of item (A).
9    The exemption does not include aircraft operated by a
10commercial air carrier providing scheduled passenger air
11service pursuant to authority issued under Part 121 or Part
12129 of the Federal Aviation Regulations. The changes made to
13this paragraph (35) by Public Act 98-534 are declarative of
14existing law. It is the intent of the General Assembly that the
15exemption under this paragraph (35) applies continuously from
16January 1, 2010 through December 31, 2024; however, no claim
17for credit or refund is allowed for taxes paid as a result of
18the disallowance of this exemption on or after January 1, 2015
19and prior to February 5, 2020 (the effective date of Public Act
20101-629).
21    (36) Tangible personal property purchased by a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

 

 

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1consideration by or on behalf of the municipality at the time
2of the completion of the municipal convention hall or upon the
3retirement or redemption of any bonds or other debt
4instruments issued by the public-facilities corporation in
5connection with the development of the municipal convention
6hall. This exemption includes existing public-facilities
7corporations as provided in Section 11-65-25 of the Illinois
8Municipal Code. This paragraph is exempt from the provisions
9of Section 3-90.
10    (37) Beginning January 1, 2017 and through December 31,
112026, menstrual pads, tampons, and menstrual cups.
12    (38) Merchandise that is subject to the Rental Purchase
13Agreement Occupation and Use Tax. The purchaser must certify
14that the item is purchased to be rented subject to a
15rental-purchase rental purchase agreement, as defined in the
16Rental-Purchase Rental Purchase Agreement Act, and provide
17proof of registration under the Rental Purchase Agreement
18Occupation and Use Tax Act. This paragraph is exempt from the
19provisions of Section 3-90.
20    (39) Tangible personal property purchased by a purchaser
21who is exempt from the tax imposed by this Act by operation of
22federal law. This paragraph is exempt from the provisions of
23Section 3-90.
24    (40) Qualified tangible personal property used in the
25construction or operation of a data center that has been
26granted a certificate of exemption by the Department of

 

 

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1Commerce and Economic Opportunity, whether that tangible
2personal property is purchased by the owner, operator, or
3tenant of the data center or by a contractor or subcontractor
4of the owner, operator, or tenant. Data centers that would
5have qualified for a certificate of exemption prior to January
61, 2020 had Public Act 101-31 been in effect may apply for and
7obtain an exemption for subsequent purchases of computer
8equipment or enabling software purchased or leased to upgrade,
9supplement, or replace computer equipment or enabling software
10purchased or leased in the original investment that would have
11qualified.
12    The Department of Commerce and Economic Opportunity shall
13grant a certificate of exemption under this item (40) to
14qualified data centers as defined by Section 605-1025 of the
15Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17    For the purposes of this item (40):
18        "Data center" means a building or a series of
19    buildings rehabilitated or constructed to house working
20    servers in one physical location or multiple sites within
21    the State of Illinois.
22        "Qualified tangible personal property" means:
23    electrical systems and equipment; climate control and
24    chilling equipment and systems; mechanical systems and
25    equipment; monitoring and secure systems; emergency
26    generators; hardware; computers; servers; data storage

 

 

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1    devices; network connectivity equipment; racks; cabinets;
2    telecommunications cabling infrastructure; raised floor
3    systems; peripheral components or systems; software;
4    mechanical, electrical, or plumbing systems; battery
5    systems; cooling systems and towers; temperature control
6    systems; other cabling; and other data center
7    infrastructure equipment and systems necessary to operate
8    qualified tangible personal property, including fixtures;
9    and component parts of any of the foregoing, including
10    installation, maintenance, repair, refurbishment, and
11    replacement of qualified tangible personal property to
12    generate, transform, transmit, distribute, or manage
13    electricity necessary to operate qualified tangible
14    personal property; and all other tangible personal
15    property that is essential to the operations of a computer
16    data center. The term "qualified tangible personal
17    property" also includes building materials physically
18    incorporated into in to the qualifying data center. To
19    document the exemption allowed under this Section, the
20    retailer must obtain from the purchaser a copy of the
21    certificate of eligibility issued by the Department of
22    Commerce and Economic Opportunity.
23    This item (40) is exempt from the provisions of Section
243-90.
25    (41) Beginning July 1, 2022, breast pumps, breast pump
26collection and storage supplies, and breast pump kits. This

 

 

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1item (41) is exempt from the provisions of Section 3-90. As
2used in this item (41):
3        "Breast pump" means an electrically controlled or
4    manually controlled pump device designed or marketed to be
5    used to express milk from a human breast during lactation,
6    including the pump device and any battery, AC adapter, or
7    other power supply unit that is used to power the pump
8    device and is packaged and sold with the pump device at the
9    time of sale.
10        "Breast pump collection and storage supplies" means
11    items of tangible personal property designed or marketed
12    to be used in conjunction with a breast pump to collect
13    milk expressed from a human breast and to store collected
14    milk until it is ready for consumption.
15        "Breast pump collection and storage supplies"
16    includes, but is not limited to: breast shields and breast
17    shield connectors; breast pump tubes and tubing adapters;
18    breast pump valves and membranes; backflow protectors and
19    backflow protector adaptors; bottles and bottle caps
20    specific to the operation of the breast pump; and breast
21    milk storage bags.
22        "Breast pump collection and storage supplies" does not
23    include: (1) bottles and bottle caps not specific to the
24    operation of the breast pump; (2) breast pump travel bags
25    and other similar carrying accessories, including ice
26    packs, labels, and other similar products; (3) breast pump

 

 

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1    cleaning supplies; (4) nursing bras, bra pads, breast
2    shells, and other similar products; and (5) creams,
3    ointments, and other similar products that relieve
4    breastfeeding-related symptoms or conditions of the
5    breasts or nipples, unless sold as part of a breast pump
6    kit that is pre-packaged by the breast pump manufacturer
7    or distributor.
8        "Breast pump kit" means a kit that: (1) contains no
9    more than a breast pump, breast pump collection and
10    storage supplies, a rechargeable battery for operating the
11    breast pump, a breastmilk cooler, bottle stands, ice
12    packs, and a breast pump carrying case; and (2) is
13    pre-packaged as a breast pump kit by the breast pump
14    manufacturer or distributor.
15    (42) Tangible personal property sold by or on behalf of
16the State Treasurer pursuant to the Revised Uniform Unclaimed
17Property Act. This item (42) is exempt from the provisions of
18Section 3-90.
19    (43) Beginning on January 1, 2024, tangible personal
20property purchased by an active duty member of the armed
21forces of the United States who presents valid military
22identification and purchases the property using a form of
23payment where the federal government is the payor. The member
24of the armed forces must complete, at the point of sale, a form
25prescribed by the Department of Revenue documenting that the
26transaction is eligible for the exemption under this

 

 

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1paragraph. Retailers must keep the form as documentation of
2the exemption in their records for a period of not less than 6
3years. "Armed forces of the United States" means the United
4States Army, Navy, Air Force, Marine Corps, or Coast Guard.
5This paragraph is exempt from the provisions of Section 3-90.
6    (44) Beginning July 1, 2024, home-delivered meals provided
7to Medicare or Medicaid recipients when payment is made by an
8intermediary, such as a Medicare Administrative Contractor, a
9Managed Care Organization, or a Medicare Advantage
10Organization, pursuant to a government contract. This item
11(44) is exempt from the provisions of Section 3-90.
12(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
13Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
14eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
15Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
16eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
17revised 9-12-23.)
 
18    Section 10. The Service Use Tax Act is amended by changing
19Section 3-5 as follows:
 
20    (35 ILCS 110/3-5)
21    (Text of Section before amendment by P.A. 103-384)
22    Sec. 3-5. Exemptions. Use of the following tangible
23personal property is exempt from the tax imposed by this Act:
24    (1) Personal property purchased from a corporation,

 

 

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1society, association, foundation, institution, or
2organization, other than a limited liability company, that is
3organized and operated as a not-for-profit service enterprise
4for the benefit of persons 65 years of age or older if the
5personal property was not purchased by the enterprise for the
6purpose of resale by the enterprise.
7    (2) Personal property purchased by a non-profit Illinois
8county fair association for use in conducting, operating, or
9promoting the county fair.
10    (3) Personal property purchased by a not-for-profit arts
11or cultural organization that establishes, by proof required
12by the Department by rule, that it has received an exemption
13under Section 501(c)(3) of the Internal Revenue Code and that
14is organized and operated primarily for the presentation or
15support of arts or cultural programming, activities, or
16services. These organizations include, but are not limited to,
17music and dramatic arts organizations such as symphony
18orchestras and theatrical groups, arts and cultural service
19organizations, local arts councils, visual arts organizations,
20and media arts organizations. On and after July 1, 2001 (the
21effective date of Public Act 92-35), however, an entity
22otherwise eligible for this exemption shall not make tax-free
23purchases unless it has an active identification number issued
24by the Department.
25    (4) 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    (5) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new
6and used, and including that manufactured on special order or
7purchased for lease, certified by the purchaser to be used
8primarily for graphic arts production. Equipment includes
9chemicals or chemicals acting as catalysts but only if the
10chemicals or chemicals acting as catalysts effect a direct and
11immediate change upon a graphic arts product. Beginning on
12July 1, 2017, graphic arts machinery and equipment is included
13in the manufacturing and assembling machinery and equipment
14exemption under Section 2 of this Act.
15    (6) Personal property purchased from a teacher-sponsored
16student organization affiliated with an elementary or
17secondary school located in Illinois.
18    (7) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the
25Illinois Vehicle Code, farm machinery and agricultural
26chemical and fertilizer spreaders, and nurse wagons required

 

 

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1to be registered under Section 3-809 of the Illinois Vehicle
2Code, but excluding other motor vehicles required to be
3registered under the Illinois Vehicle Code. Horticultural
4polyhouses or hoop houses used for propagating, growing, or
5overwintering plants shall be considered farm machinery and
6equipment under this item (7). Agricultural chemical tender
7tanks and dry boxes shall include units sold separately from a
8motor vehicle required to be licensed and units sold mounted
9on a motor vehicle required to be licensed if the selling price
10of the tender is separately stated.
11    Farm machinery and equipment shall include precision
12farming equipment that is installed or purchased to be
13installed on farm machinery and equipment, including, but not
14limited to, tractors, harvesters, sprayers, planters, seeders,
15or spreaders. Precision farming equipment includes, but is not
16limited to, soil testing sensors, computers, monitors,
17software, global positioning and mapping systems, and other
18such equipment.
19    Farm machinery and equipment also includes computers,
20sensors, software, and related equipment used primarily in the
21computer-assisted operation of production agriculture
22facilities, equipment, and activities such as, but not limited
23to, the collection, monitoring, and correlation of animal and
24crop data for the purpose of formulating animal diets and
25agricultural chemicals.
26    Beginning on January 1, 2024, farm machinery and equipment

 

 

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1also includes electrical power generation equipment used
2primarily for production agriculture.
3    This item (7) is exempt from the provisions of Section
43-75.
5    (8) Until June 30, 2013, fuel and petroleum products sold
6to or used by an air common carrier, certified by the carrier
7to be used for consumption, shipment, or storage in the
8conduct of its business as an air common carrier, for a flight
9destined for or returning from a location or locations outside
10the United States without regard to previous or subsequent
11domestic stopovers.
12    Beginning July 1, 2013, fuel and petroleum products sold
13to or used by an air carrier, certified by the carrier to be
14used for consumption, shipment, or storage in the conduct of
15its business as an air common carrier, for a flight that (i) is
16engaged in foreign trade or is engaged in trade between the
17United States and any of its possessions and (ii) transports
18at least one individual or package for hire from the city of
19origination to the city of final destination on the same
20aircraft, without regard to a change in the flight number of
21that aircraft.
22    (9) Proceeds of mandatory service charges separately
23stated on customers' bills for the purchase and consumption of
24food and beverages acquired as an incident to the purchase of a
25service from a serviceman, to the extent that the proceeds of
26the service charge are in fact turned over as tips or as a

 

 

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

 

 

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1Public Act 97-767 apply on and after July 1, 2003, but no claim
2for credit or refund is allowed on or after August 16, 2013
3(the effective date of Public Act 98-456) for such taxes paid
4during the period beginning July 1, 2003 and ending on August
516, 2013 (the effective date of Public Act 98-456).
6    (13) Semen used for artificial insemination of livestock
7for direct agricultural production.
8    (14) Horses, or interests in horses, registered with and
9meeting the requirements of any of the Arabian Horse Club
10Registry of America, Appaloosa Horse Club, American Quarter
11Horse Association, United States Trotting Association, or
12Jockey Club, as appropriate, used for purposes of breeding or
13racing for prizes. This item (14) is exempt from the
14provisions of Section 3-75, and the exemption provided for
15under this item (14) applies for all periods beginning May 30,
161995, but no claim for credit or refund is allowed on or after
17January 1, 2008 (the effective date of Public Act 95-88) for
18such taxes paid during the period beginning May 30, 2000 and
19ending on January 1, 2008 (the effective date of Public Act
2095-88).
21    (15) Computers and communications equipment utilized for
22any hospital purpose and equipment used in the diagnosis,
23analysis, or treatment of hospital patients purchased by a
24lessor who leases the equipment, under a lease of one year or
25longer executed or in effect at the time the lessor would
26otherwise be subject to the tax imposed by this Act, to a

 

 

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

 

 

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

 

 

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1access roads, bridges, sidewalks, waste disposal systems,
2water and sewer line extensions, water distribution and
3purification facilities, storm water drainage and retention
4facilities, and sewage treatment facilities, resulting from a
5State or federally declared disaster in Illinois or bordering
6Illinois when such repairs are initiated on facilities located
7in the declared disaster area within 6 months after the
8disaster.
9    (19) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-75.
13    (20) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the
17Department to be organized and operated exclusively for
18educational purposes. For purposes of this exemption, "a
19corporation, limited liability company, society, association,
20foundation, or institution organized and operated exclusively
21for educational purposes" means all tax-supported public
22schools, private schools that offer systematic instruction in
23useful branches of learning by methods common to public
24schools and that compare favorably in their scope and
25intensity with the course of study presented in tax-supported
26schools, and vocational or technical schools or institutes

 

 

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1organized and operated exclusively to provide a course of
2study of not less than 6 weeks duration and designed to prepare
3individuals to follow a trade or to pursue a manual,
4technical, mechanical, industrial, business, or commercial
5occupation.
6    (21) Beginning January 1, 2000, personal property,
7including food, purchased through fundraising events for the
8benefit of a public or private elementary or secondary school,
9a group of those schools, or one or more school districts if
10the events are sponsored by an entity recognized by the school
11district that consists primarily of volunteers and includes
12parents and teachers of the school children. This paragraph
13does not apply to fundraising events (i) for the benefit of
14private home instruction or (ii) for which the fundraising
15entity purchases the personal property sold at the events from
16another individual or entity that sold the property for the
17purpose of resale by the fundraising entity and that profits
18from the sale to the fundraising entity. This paragraph is
19exempt from the provisions of Section 3-75.
20    (22) Beginning January 1, 2000 and through December 31,
212001, new or used automatic vending machines that prepare and
22serve hot food and beverages, including coffee, soup, and
23other items, and replacement parts for these machines.
24Beginning January 1, 2002 and through June 30, 2003, machines
25and parts for machines used in commercial, coin-operated
26amusement and vending business if a use or occupation tax is

 

 

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

 

 

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

 

 

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1based on the fair market value of the property at the time the
2nonqualifying use occurs. No lessor shall collect or attempt
3to collect an amount (however designated) that purports to
4reimburse that lessor for the tax imposed by this Act or the
5Use Tax Act, as the case may be, if the tax has not been paid
6by the lessor. If a lessor improperly collects any such amount
7from the lessee, the lessee shall have a legal right to claim a
8refund of that amount from the lessor. If, however, that
9amount is not refunded to the lessee for any reason, the lessor
10is liable to pay that amount to the Department. This paragraph
11is exempt from the provisions of Section 3-75.
12    (26) Beginning January 1, 2008, tangible personal property
13used in the construction or maintenance of a community water
14supply, as defined under Section 3.145 of the Environmental
15Protection Act, that is operated by a not-for-profit
16corporation that holds a valid water supply permit issued
17under Title IV of the Environmental Protection Act. This
18paragraph is exempt from the provisions of Section 3-75.
19    (27) Beginning January 1, 2010 and continuing through
20December 31, 2029, 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. However, until January 1, 2024, this

 

 

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1exemption excludes any materials, parts, equipment,
2components, and consumable supplies used in the modification,
3replacement, repair, and maintenance of aircraft engines or
4power plants, whether such engines or power plants are
5installed or uninstalled upon any such aircraft. "Consumable
6supplies" include, but are not limited to, adhesive, tape,
7sandpaper, general purpose lubricants, cleaning solution,
8latex gloves, and protective films.
9    Beginning January 1, 2010 and continuing through December
1031, 2023, this exemption applies only to the use of qualifying
11tangible personal property transferred incident to the
12modification, refurbishment, completion, replacement, repair,
13or maintenance of aircraft by persons who (i) hold an Air
14Agency Certificate and are empowered to operate an approved
15repair station by the Federal Aviation Administration, (ii)
16have a Class IV Rating, and (iii) conduct operations in
17accordance with Part 145 of the Federal Aviation Regulations.
18From January 1, 2024 through December 31, 2029, this exemption
19applies only to the use of qualifying tangible personal
20property by: (A) persons who modify, refurbish, complete,
21repair, replace, or maintain aircraft and who (i) hold an Air
22Agency Certificate and are empowered to operate an approved
23repair station by the Federal Aviation Administration, (ii)
24have a Class IV Rating, and (iii) conduct operations in
25accordance with Part 145 of the Federal Aviation Regulations;
26and (B) persons who engage in the modification, replacement,

 

 

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1repair, and maintenance of aircraft engines or power plants
2without regard to whether or not those persons meet the
3qualifications of item (A).
4    The exemption does not include aircraft operated by a
5commercial air carrier providing scheduled passenger air
6service pursuant to authority issued under Part 121 or Part
7129 of the Federal Aviation Regulations. The changes made to
8this paragraph (27) by Public Act 98-534 are declarative of
9existing law. It is the intent of the General Assembly that the
10exemption under this paragraph (27) applies continuously from
11January 1, 2010 through December 31, 2024; however, no claim
12for credit or refund is allowed for taxes paid as a result of
13the disallowance of this exemption on or after January 1, 2015
14and prior to February 5, 2020 (the effective date of Public Act
15101-629).
16    (28) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt
25instruments issued by the public-facilities corporation in
26connection with the development of the municipal convention

 

 

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1hall. This exemption includes existing public-facilities
2corporations as provided in Section 11-65-25 of the Illinois
3Municipal Code. This paragraph is exempt from the provisions
4of Section 3-75.
5    (29) Beginning January 1, 2017 and through December 31,
62026, menstrual pads, tampons, and menstrual cups.
7    (30) Tangible personal property transferred to 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 3-75.
11    (31) 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 (31) 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 (31):
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 into in to the qualifying data center. To
6    document the exemption allowed under this Section, the
7    retailer must obtain from the purchaser a copy of the
8    certificate of eligibility issued by the Department of
9    Commerce and Economic Opportunity.
10    This item (31) is exempt from the provisions of Section
113-75.
12    (32) Beginning July 1, 2022, breast pumps, breast pump
13collection and storage supplies, and breast pump kits. This
14item (32) is exempt from the provisions of Section 3-75. As
15used in this item (32):
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    (33) Tangible personal property sold by or on behalf of
3the State Treasurer pursuant to the Revised Uniform Unclaimed
4Property Act. This item (33) is exempt from the provisions of
5Section 3-75.
6(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
7Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
875-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
9Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
10eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-14-23.)
 
11    (Text of Section after amendment by P.A. 103-384)
12    Sec. 3-5. Exemptions. Use of the following tangible
13personal property is exempt from the tax imposed by this Act:
14    (1) Personal property purchased from a corporation,
15society, association, foundation, institution, or
16organization, other than a limited liability company, that is
17organized and operated as a not-for-profit service enterprise
18for the benefit of persons 65 years of age or older if the
19personal property was not purchased by the enterprise for the
20purpose of resale by the enterprise.
21    (2) Personal property purchased by a non-profit Illinois
22county fair association for use in conducting, operating, or
23promoting the county fair.
24    (3) Personal property purchased by a not-for-profit arts
25or cultural organization that establishes, by proof required

 

 

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1by the Department by rule, that it has received an exemption
2under Section 501(c)(3) of the Internal Revenue Code and that
3is organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after July 1, 2001 (the
10effective date of Public Act 92-35), however, an entity
11otherwise eligible for this exemption shall not make tax-free
12purchases unless it has an active identification number issued
13by the Department.
14    (4) 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    (5) Until July 1, 2003 and beginning again on September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new
21and used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product. Beginning on

 

 

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

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment, including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals.
15    Beginning on January 1, 2024, farm machinery and equipment
16also includes electrical power generation equipment used
17primarily for production agriculture.
18    This item (7) is exempt from the provisions of Section
193-75.
20    (8) Until June 30, 2013, fuel and petroleum products sold
21to or used by an air common carrier, certified by the carrier
22to be used for consumption, shipment, or storage in the
23conduct of its business as an air common carrier, for a flight
24destined for or returning from a location or locations outside
25the United States without regard to previous or subsequent
26domestic stopovers.

 

 

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

 

 

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

 

 

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1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (14) is exempt from the
3provisions of Section 3-75, and the exemption provided for
4under this item (14) applies for all periods beginning May 30,
51995, but no claim for credit or refund is allowed on or after
6January 1, 2008 (the effective date of Public Act 95-88) for
7such taxes paid during the period beginning May 30, 2000 and
8ending on January 1, 2008 (the effective date of Public Act
995-88).
10    (15) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients purchased by a
13lessor who leases the equipment, under a lease of one year or
14longer executed or in effect at the time the lessor would
15otherwise be subject to the tax imposed by this Act, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of
18the Retailers' Occupation Tax Act. If the equipment is leased
19in a manner that does not qualify for this exemption or is used
20in any other non-exempt manner, the lessor shall be liable for
21the tax imposed under this Act or the Use Tax Act, as the case
22may be, based on the fair market value of the property at the
23time the non-qualifying use occurs. No lessor shall collect or
24attempt to collect an amount (however designated) that
25purports to reimburse that lessor for the tax imposed by this
26Act or the Use Tax Act, as the case may be, if the tax has not

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (26) Beginning January 1, 2008, tangible personal property
2used in the construction or maintenance of a community water
3supply, as defined under Section 3.145 of the Environmental
4Protection Act, that is operated by a not-for-profit
5corporation that holds a valid water supply permit issued
6under Title IV of the Environmental Protection Act. This
7paragraph is exempt from the provisions of Section 3-75.
8    (27) Beginning January 1, 2010 and continuing through
9December 31, 2029, materials, parts, equipment, components,
10and furnishings incorporated into or upon an aircraft as part
11of the modification, refurbishment, completion, replacement,
12repair, or maintenance of the aircraft. This exemption
13includes consumable supplies used in the modification,
14refurbishment, completion, replacement, repair, and
15maintenance of aircraft. However, until January 1, 2024, this
16exemption excludes any materials, parts, equipment,
17components, and consumable supplies used in the modification,
18replacement, repair, and maintenance of aircraft engines or
19power plants, whether such engines or power plants are
20installed or uninstalled upon any such aircraft. "Consumable
21supplies" include, but are not limited to, adhesive, tape,
22sandpaper, general purpose lubricants, cleaning solution,
23latex gloves, and protective films.
24    Beginning January 1, 2010 and continuing through December
2531, 2023, this exemption applies only to the use of qualifying
26tangible personal property transferred incident to the

 

 

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1modification, refurbishment, completion, replacement, repair,
2or maintenance of aircraft by persons who (i) hold an Air
3Agency Certificate and are empowered to operate an approved
4repair station by the Federal Aviation Administration, (ii)
5have a Class IV Rating, and (iii) conduct operations in
6accordance with Part 145 of the Federal Aviation Regulations.
7From January 1, 2024 through December 31, 2029, this exemption
8applies only to the use of qualifying tangible personal
9property by: (A) persons who modify, refurbish, complete,
10repair, replace, or maintain aircraft and who (i) hold an Air
11Agency Certificate and are empowered to operate an approved
12repair station by the Federal Aviation Administration, (ii)
13have a Class IV Rating, and (iii) conduct operations in
14accordance with Part 145 of the Federal Aviation Regulations;
15and (B) persons who engage in the modification, replacement,
16repair, and maintenance of aircraft engines or power plants
17without regard to whether or not those persons meet the
18qualifications of item (A).
19    The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part
22129 of the Federal Aviation Regulations. The changes made to
23this paragraph (27) by Public Act 98-534 are declarative of
24existing law. It is the intent of the General Assembly that the
25exemption under this paragraph (27) applies continuously from
26January 1, 2010 through December 31, 2024; however, no claim

 

 

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1for credit or refund is allowed for taxes paid as a result of
2the disallowance of this exemption on or after January 1, 2015
3and prior to February 5, 2020 (the effective date of Public Act
4101-629).
5    (28) Tangible personal property purchased by a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt
14instruments issued by the public-facilities corporation in
15connection with the development of the municipal convention
16hall. This exemption includes existing public-facilities
17corporations as provided in Section 11-65-25 of the Illinois
18Municipal Code. This paragraph is exempt from the provisions
19of Section 3-75.
20    (29) Beginning January 1, 2017 and through December 31,
212026, menstrual pads, tampons, and menstrual cups.
22    (30) Tangible personal property transferred to a purchaser
23who is exempt from the tax imposed by this Act by operation of
24federal law. This paragraph is exempt from the provisions of
25Section 3-75.
26    (31) Qualified tangible personal property used in the

 

 

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1construction or operation of a data center that has been
2granted a certificate of exemption by the Department of
3Commerce and Economic Opportunity, whether that tangible
4personal property is purchased by the owner, operator, or
5tenant of the data center or by a contractor or subcontractor
6of the owner, operator, or tenant. Data centers that would
7have qualified for a certificate of exemption prior to January
81, 2020 had Public Act 101-31 been in effect, may apply for and
9obtain an exemption for subsequent purchases of computer
10equipment or enabling software purchased or leased to upgrade,
11supplement, or replace computer equipment or enabling software
12purchased or leased in the original investment that would have
13qualified.
14    The Department of Commerce and Economic Opportunity shall
15grant a certificate of exemption under this item (31) to
16qualified data centers as defined by Section 605-1025 of the
17Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19    For the purposes of this item (31):
20        "Data center" means a building or a series of
21    buildings rehabilitated or constructed to house working
22    servers in one physical location or multiple sites within
23    the State of Illinois.
24        "Qualified tangible personal property" means:
25    electrical systems and equipment; climate control and
26    chilling equipment and systems; mechanical systems and

 

 

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1    equipment; monitoring and secure systems; emergency
2    generators; hardware; computers; servers; data storage
3    devices; network connectivity equipment; racks; cabinets;
4    telecommunications cabling infrastructure; raised floor
5    systems; peripheral components or systems; software;
6    mechanical, electrical, or plumbing systems; battery
7    systems; cooling systems and towers; temperature control
8    systems; other cabling; and other data center
9    infrastructure equipment and systems necessary to operate
10    qualified tangible personal property, including fixtures;
11    and component parts of any of the foregoing, including
12    installation, maintenance, repair, refurbishment, and
13    replacement of qualified tangible personal property to
14    generate, transform, transmit, distribute, or manage
15    electricity necessary to operate qualified tangible
16    personal property; and all other tangible personal
17    property that is essential to the operations of a computer
18    data center. The term "qualified tangible personal
19    property" also includes building materials physically
20    incorporated into in to the qualifying data center. To
21    document the exemption allowed under this Section, the
22    retailer must obtain from the purchaser a copy of the
23    certificate of eligibility issued by the Department of
24    Commerce and Economic Opportunity.
25    This item (31) is exempt from the provisions of Section
263-75.

 

 

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1    (32) Beginning July 1, 2022, breast pumps, breast pump
2collection and storage supplies, and breast pump kits. This
3item (32) is exempt from the provisions of Section 3-75. As
4used in this item (32):
5        "Breast pump" means an electrically controlled or
6    manually controlled pump device designed or marketed to be
7    used to express milk from a human breast during lactation,
8    including the pump device and any battery, AC adapter, or
9    other power supply unit that is used to power the pump
10    device and is packaged and sold with the pump device at the
11    time of sale.
12        "Breast pump collection and storage supplies" means
13    items of tangible personal property designed or marketed
14    to be used in conjunction with a breast pump to collect
15    milk expressed from a human breast and to store collected
16    milk until it is ready for consumption.
17        "Breast pump collection and storage supplies"
18    includes, but is not limited to: breast shields and breast
19    shield connectors; breast pump tubes and tubing adapters;
20    breast pump valves and membranes; backflow protectors and
21    backflow protector adaptors; bottles and bottle caps
22    specific to the operation of the breast pump; and breast
23    milk storage bags.
24        "Breast pump collection and storage supplies" does not
25    include: (1) bottles and bottle caps not specific to the
26    operation of the breast pump; (2) breast pump travel bags

 

 

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1    and other similar carrying accessories, including ice
2    packs, labels, and other similar products; (3) breast pump
3    cleaning supplies; (4) nursing bras, bra pads, breast
4    shells, and other similar products; and (5) creams,
5    ointments, and other similar products that relieve
6    breastfeeding-related symptoms or conditions of the
7    breasts or nipples, unless sold as part of a breast pump
8    kit that is pre-packaged by the breast pump manufacturer
9    or distributor.
10        "Breast pump kit" means a kit that: (1) contains no
11    more than a breast pump, breast pump collection and
12    storage supplies, a rechargeable battery for operating the
13    breast pump, a breastmilk cooler, bottle stands, ice
14    packs, and a breast pump carrying case; and (2) is
15    pre-packaged as a breast pump kit by the breast pump
16    manufacturer or distributor.
17    (33) Tangible personal property sold by or on behalf of
18the State Treasurer pursuant to the Revised Uniform Unclaimed
19Property Act. This item (33) is exempt from the provisions of
20Section 3-75.
21    (34) Beginning on January 1, 2024, tangible personal
22property purchased by an active duty member of the armed
23forces of the United States who presents valid military
24identification and purchases the property using a form of
25payment where the federal government is the payor. The member
26of the armed forces must complete, at the point of sale, a form

 

 

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1prescribed by the Department of Revenue documenting that the
2transaction is eligible for the exemption under this
3paragraph. Retailers must keep the form as documentation of
4the exemption in their records for a period of not less than 6
5years. "Armed forces of the United States" means the United
6States Army, Navy, Air Force, Marine Corps, or Coast Guard.
7This paragraph is exempt from the provisions of Section 3-75.
8    (35) Beginning July 1, 2024, home-delivered meals provided
9to Medicare or Medicaid recipients when payment is made by an
10intermediary, such as a Medicare Administrative Contractor, a
11Managed Care Organization, or a Medicare Advantage
12Organization, pursuant to a government contract. This
13paragraph (35) is exempt from the provisions of Section 3-75.
14(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
15Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1675-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
17Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
18eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
19revised 9-14-23.)
 
20    Section 15. The Service Occupation Tax Act is amended by
21changing Section 3-5 as follows:
 
22    (35 ILCS 115/3-5)
23    (Text of Section before amendment by P.A. 103-384)
24    Sec. 3-5. Exemptions. The following tangible personal

 

 

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

 

 

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1    (4) Legal tender, currency, medallions, or gold or silver
2coinage issued by the State of Illinois, the government of the
3United States of America, or the government of any foreign
4country, and bullion.
5    (5) Until July 1, 2003 and beginning again on September 1,
62004 through August 30, 2014, graphic arts machinery and
7equipment, including repair and replacement parts, both new
8and used, and including that manufactured on special order or
9purchased for lease, certified by the purchaser to be used
10primarily for graphic arts production. Equipment includes
11chemicals or chemicals acting as catalysts but only if the
12chemicals or chemicals acting as catalysts effect a direct and
13immediate change upon a graphic arts product. Beginning on
14July 1, 2017, graphic arts machinery and equipment is included
15in the manufacturing and assembling machinery and equipment
16exemption under Section 2 of this Act.
17    (6) Personal property sold by a teacher-sponsored student
18organization affiliated with an elementary or secondary school
19located in Illinois.
20    (7) Farm machinery and equipment, both new and used,
21including that manufactured on special order, certified by the
22purchaser to be used primarily for production agriculture or
23State or federal agricultural programs, including individual
24replacement parts for the machinery and equipment, including
25machinery and equipment purchased for lease, and including
26implements of husbandry defined in Section 1-130 of the

 

 

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

 

 

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1agricultural chemicals.
2    Beginning on January 1, 2024, farm machinery and equipment
3also includes electrical power generation equipment used
4primarily for production agriculture.
5    This item (7) is exempt from the provisions of Section
63-55.
7    (8) Until June 30, 2013, fuel and petroleum products sold
8to or used by an air common carrier, certified by the carrier
9to be used for consumption, shipment, or storage in the
10conduct of its business as an air common carrier, for a flight
11destined for or returning from a location or locations outside
12the United States without regard to previous or subsequent
13domestic stopovers.
14    Beginning July 1, 2013, fuel and petroleum products sold
15to or used by an air carrier, certified by the carrier to be
16used for consumption, shipment, or storage in the conduct of
17its business as an air common carrier, for a flight that (i) is
18engaged in foreign trade or is engaged in trade between the
19United States and any of its possessions and (ii) transports
20at least one individual or package for hire from the city of
21origination to the city of final destination on the same
22aircraft, without regard to a change in the flight number of
23that aircraft.
24    (9) Proceeds of mandatory service charges separately
25stated on customers' bills for the purchase and consumption of
26food and beverages, to the extent that the proceeds of the

 

 

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

 

 

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1Public Act 97-767 apply on and after July 1, 2003, but no claim
2for credit or refund is allowed on or after August 16, 2013
3(the effective date of Public Act 98-456) for such taxes paid
4during the period beginning July 1, 2003 and ending on August
516, 2013 (the effective date of Public Act 98-456).
6    (13) Beginning January 1, 1992 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages,
9soft drinks and food that has been prepared for immediate
10consumption) and prescription and non-prescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act, the MC/DD Act, or the
18Specialized Mental Health Rehabilitation Act of 2013.
19    (14) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (15) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (15) is exempt from the

 

 

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1provisions of Section 3-55, and the exemption provided for
2under this item (15) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 (the effective date of Public Act 95-88) for
5such taxes paid during the period beginning May 30, 2000 and
6ending on January 1, 2008 (the effective date of Public Act
795-88).
8    (16) Computers and communications equipment utilized for
9any hospital purpose and equipment used in the diagnosis,
10analysis, or treatment of hospital patients sold to a lessor
11who leases the equipment, under a lease of one year or longer
12executed or in effect at the time of the purchase, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15the Retailers' Occupation Tax Act.
16    (17) Personal property sold to a lessor who leases the
17property, under a lease of one year or longer executed or in
18effect at the time of the purchase, to a governmental body that
19has been issued an active tax exemption identification number
20by the Department under Section 1g of the Retailers'
21Occupation Tax Act.
22    (18) Beginning with taxable years ending on or after
23December 31, 1995 and ending with taxable years ending on or
24before December 31, 2004, personal property that is donated
25for disaster relief to be used in a State or federally declared
26disaster area in Illinois or bordering Illinois by a

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (19) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is used in
9the performance of infrastructure repairs in this State,
10including, but not limited to, municipal roads and streets,
11access roads, bridges, sidewalks, waste disposal systems,
12water and sewer line extensions, water distribution and
13purification facilities, storm water drainage and retention
14facilities, and sewage treatment facilities, resulting from a
15State or federally declared disaster in Illinois or bordering
16Illinois when such repairs are initiated on facilities located
17in the declared disaster area within 6 months after the
18disaster.
19    (20) Beginning July 1, 1999, game or game birds sold at a
20"game breeding and hunting preserve area" as that term is used
21in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-55.
23    (21) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the

 

 

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

 

 

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1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-55.
4    (23) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and
7other items, and replacement parts for these machines.
8Beginning January 1, 2002 and through June 30, 2003, machines
9and parts for machines used in commercial, coin-operated
10amusement and vending business if a use or occupation tax is
11paid on the gross receipts derived from the use of the
12commercial, coin-operated amusement and vending machines. This
13paragraph is exempt from the provisions of Section 3-55.
14    (24) Beginning on August 2, 2001 (the effective date of
15Public Act 92-227), computers and communications equipment
16utilized for any hospital purpose and equipment used in the
17diagnosis, analysis, or treatment of hospital patients sold to
18a lessor who leases the equipment, under a lease of one year or
19longer executed or in effect at the time of the purchase, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of
22the Retailers' Occupation Tax Act. This paragraph is exempt
23from the provisions of Section 3-55.
24    (25) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), personal property sold to a lessor who
26leases the property, under a lease of one year or longer

 

 

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1executed or in effect at the time of the purchase, to a
2governmental body that has been issued an active tax exemption
3identification number by the Department under Section 1g of
4the Retailers' Occupation Tax Act. This paragraph is exempt
5from the provisions of Section 3-55.
6    (26) Beginning on January 1, 2002 and through June 30,
72016, tangible personal property purchased from an Illinois
8retailer by a taxpayer engaged in centralized purchasing
9activities in Illinois who will, upon receipt of the property
10in Illinois, temporarily store the property in Illinois (i)
11for the purpose of subsequently transporting it outside this
12State for use or consumption thereafter solely outside this
13State or (ii) for the purpose of being processed, fabricated,
14or manufactured into, attached to, or incorporated into other
15tangible personal property to be transported outside this
16State and thereafter used or consumed solely outside this
17State. The Director of Revenue shall, pursuant to rules
18adopted in accordance with the Illinois Administrative
19Procedure Act, issue a permit to any taxpayer in good standing
20with the Department who is eligible for the exemption under
21this paragraph (26). The permit issued under this paragraph
22(26) shall authorize the holder, to the extent and in the
23manner specified in the rules adopted under this Act, to
24purchase tangible personal property from a retailer exempt
25from the taxes imposed by this Act. Taxpayers shall maintain
26all necessary books and records to substantiate the use and

 

 

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1consumption of all such tangible personal property outside of
2the State of Illinois.
3    (27) Beginning January 1, 2008, tangible personal property
4used in the construction or maintenance of a community water
5supply, as defined under Section 3.145 of the Environmental
6Protection Act, that is operated by a not-for-profit
7corporation that holds a valid water supply permit issued
8under Title IV of the Environmental Protection Act. This
9paragraph is exempt from the provisions of Section 3-55.
10    (28) Tangible personal property sold to a
11public-facilities corporation, as described in Section
1211-65-10 of the Illinois Municipal Code, for purposes of
13constructing or furnishing a municipal convention hall, but
14only if the legal title to the municipal convention hall is
15transferred to the municipality without any further
16consideration by or on behalf of the municipality at the time
17of the completion of the municipal convention hall or upon the
18retirement or redemption of any bonds or other debt
19instruments issued by the public-facilities corporation in
20connection with the development of the municipal convention
21hall. This exemption includes existing public-facilities
22corporations as provided in Section 11-65-25 of the Illinois
23Municipal Code. This paragraph is exempt from the provisions
24of Section 3-55.
25    (29) Beginning January 1, 2010 and continuing through
26December 31, 2029, materials, parts, equipment, components,

 

 

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1and furnishings incorporated into or upon an aircraft as part
2of the modification, refurbishment, completion, replacement,
3repair, or maintenance of the aircraft. This exemption
4includes consumable supplies used in the modification,
5refurbishment, completion, replacement, repair, and
6maintenance of aircraft. However, until January 1, 2024, this
7exemption excludes any materials, parts, equipment,
8components, and consumable supplies used in the modification,
9replacement, repair, and maintenance of aircraft engines or
10power plants, whether such engines or power plants are
11installed or uninstalled upon any such aircraft. "Consumable
12supplies" include, but are not limited to, adhesive, tape,
13sandpaper, general purpose lubricants, cleaning solution,
14latex gloves, and protective films.
15    Beginning January 1, 2010 and continuing through December
1631, 2023, this exemption applies only to the transfer of
17qualifying tangible personal property incident to the
18modification, refurbishment, completion, replacement, repair,
19or maintenance of an aircraft by persons who (i) hold an Air
20Agency Certificate and are empowered to operate an approved
21repair station by the Federal Aviation Administration, (ii)
22have a Class IV Rating, and (iii) conduct operations in
23accordance with Part 145 of the Federal Aviation Regulations.
24The exemption does not include aircraft operated by a
25commercial air carrier providing scheduled passenger air
26service pursuant to authority issued under Part 121 or Part

 

 

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1129 of the Federal Aviation Regulations. From January 1, 2024
2through December 31, 2029, this exemption applies only to the
3use of qualifying tangible personal property by: (A) persons
4who modify, refurbish, complete, repair, replace, or maintain
5aircraft and who (i) hold an Air Agency Certificate and are
6empowered to operate an approved repair station by the Federal
7Aviation Administration, (ii) have a Class IV Rating, and
8(iii) conduct operations in accordance with Part 145 of the
9Federal Aviation Regulations; and (B) persons who engage in
10the modification, replacement, repair, and maintenance of
11aircraft engines or power plants without regard to whether or
12not those persons meet the qualifications of item (A).
13    The changes made to this paragraph (29) by Public Act
1498-534 are declarative of existing law. It is the intent of the
15General Assembly that the exemption under this paragraph (29)
16applies continuously from January 1, 2010 through December 31,
172024; however, no claim for credit or refund is allowed for
18taxes paid as a result of the disallowance of this exemption on
19or after January 1, 2015 and prior to February 5, 2020 (the
20effective date of Public Act 101-629).
21    (30) Beginning January 1, 2017 and through December 31,
222026, menstrual pads, tampons, and menstrual cups.
23    (31) Tangible personal property transferred to a purchaser
24who is exempt from tax by operation of federal law. This
25paragraph is exempt from the provisions of Section 3-55.
26    (32) Qualified tangible personal property used in the

 

 

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1construction or operation of a data center that has been
2granted a certificate of exemption by the Department of
3Commerce and Economic Opportunity, whether that tangible
4personal property is purchased by the owner, operator, or
5tenant of the data center or by a contractor or subcontractor
6of the owner, operator, or tenant. Data centers that would
7have qualified for a certificate of exemption prior to January
81, 2020 had Public Act 101-31 been in effect, may apply for and
9obtain an exemption for subsequent purchases of computer
10equipment or enabling software purchased or leased to upgrade,
11supplement, or replace computer equipment or enabling software
12purchased or leased in the original investment that would have
13qualified.
14    The Department of Commerce and Economic Opportunity shall
15grant a certificate of exemption under this item (32) to
16qualified data centers as defined by Section 605-1025 of the
17Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19    For the purposes of this item (32):
20        "Data center" means a building or a series of
21    buildings rehabilitated or constructed to house working
22    servers in one physical location or multiple sites within
23    the State of Illinois.
24        "Qualified tangible personal property" means:
25    electrical systems and equipment; climate control and
26    chilling equipment and systems; mechanical systems and

 

 

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1    equipment; monitoring and secure systems; emergency
2    generators; hardware; computers; servers; data storage
3    devices; network connectivity equipment; racks; cabinets;
4    telecommunications cabling infrastructure; raised floor
5    systems; peripheral components or systems; software;
6    mechanical, electrical, or plumbing systems; battery
7    systems; cooling systems and towers; temperature control
8    systems; other cabling; and other data center
9    infrastructure equipment and systems necessary to operate
10    qualified tangible personal property, including fixtures;
11    and component parts of any of the foregoing, including
12    installation, maintenance, repair, refurbishment, and
13    replacement of qualified tangible personal property to
14    generate, transform, transmit, distribute, or manage
15    electricity necessary to operate qualified tangible
16    personal property; and all other tangible personal
17    property that is essential to the operations of a computer
18    data center. The term "qualified tangible personal
19    property" also includes building materials physically
20    incorporated into in to the qualifying data center. To
21    document the exemption allowed under this Section, the
22    retailer must obtain from the purchaser a copy of the
23    certificate of eligibility issued by the Department of
24    Commerce and Economic Opportunity.
25    This item (32) is exempt from the provisions of Section
263-55.

 

 

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

 

 

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1    and other similar carrying accessories, including ice
2    packs, labels, and other similar products; (3) breast pump
3    cleaning supplies; (4) nursing bras, bra pads, breast
4    shells, and other similar products; and (5) creams,
5    ointments, and other similar products that relieve
6    breastfeeding-related symptoms or conditions of the
7    breasts or nipples, unless sold as part of a breast pump
8    kit that is pre-packaged by the breast pump manufacturer
9    or distributor.
10        "Breast pump kit" means a kit that: (1) contains no
11    more than a breast pump, breast pump collection and
12    storage supplies, a rechargeable battery for operating the
13    breast pump, a breastmilk cooler, bottle stands, ice
14    packs, and a breast pump carrying case; and (2) is
15    pre-packaged as a breast pump kit by the breast pump
16    manufacturer or distributor.
17    (34) Tangible personal property sold by or on behalf of
18the State Treasurer pursuant to the Revised Uniform Unclaimed
19Property Act. This item (34) is exempt from the provisions of
20Section 3-55.
21(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
22Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2375-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
24Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
25eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-19-23.)
 

 

 

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1    (Text of Section after amendment by P.A. 103-384)
2    Sec. 3-5. Exemptions. The following tangible personal
3property is exempt from the tax imposed by this Act:
4    (1) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the
8benefit of persons 65 years of age or older if the personal
9property was not purchased by the enterprise for the purpose
10of resale by the enterprise.
11    (2) Personal property purchased by a not-for-profit
12Illinois county fair association for use in conducting,
13operating, or promoting the county fair.
14    (3) Personal property purchased by any not-for-profit arts
15or cultural organization that establishes, by proof required
16by the Department by rule, that it has received an exemption
17under Section 501(c)(3) of the Internal Revenue Code and that
18is organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after July 1, 2001 (the
25effective date of Public Act 92-35), however, an entity
26otherwise eligible for this exemption shall not make tax-free

 

 

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1purchases unless it has an active identification number issued
2by the Department.
3    (4) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (5) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new
10and used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product. Beginning on
16July 1, 2017, graphic arts machinery and equipment is included
17in the manufacturing and assembling machinery and equipment
18exemption under Section 2 of this Act.
19    (6) Personal property sold by a teacher-sponsored student
20organization affiliated with an elementary or secondary school
21located in Illinois.
22    (7) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or
25State or federal agricultural programs, including individual
26replacement parts for the machinery and equipment, including

 

 

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

 

 

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1to, the collection, monitoring, and correlation of animal and
2crop data for the purpose of formulating animal diets and
3agricultural chemicals.
4    Beginning on January 1, 2024, farm machinery and equipment
5also includes electrical power generation equipment used
6primarily for production agriculture.
7    This item (7) is exempt from the provisions of Section
83-55.
9    (8) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (9) Proceeds of mandatory service charges separately

 

 

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

 

 

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1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8    (13) Beginning January 1, 1992 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages,
11soft drinks and food that has been prepared for immediate
12consumption) and prescription and non-prescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (14) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (15) 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 (15) is exempt from the
3provisions of Section 3-55, and the exemption provided for
4under this item (15) applies for all periods beginning May 30,
51995, but no claim for credit or refund is allowed on or after
6January 1, 2008 (the effective date of Public Act 95-88) for
7such taxes paid during the period beginning May 30, 2000 and
8ending on January 1, 2008 (the effective date of Public Act
995-88).
10    (16) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients sold to a lessor
13who leases the equipment, under a lease of one year or longer
14executed 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.
18    (17) Personal property sold to a lessor who leases the
19property, under a lease of one year or longer executed or in
20effect at the time of the purchase, to a governmental body that
21has been issued an active tax exemption identification number
22by the Department under Section 1g of the Retailers'
23Occupation Tax Act.
24    (18) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated

 

 

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (19) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including, but not limited to, municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (20) Beginning July 1, 1999, game or game birds sold at a
22"game breeding and hunting preserve area" as that term is used
23in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-55.
25    (21) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-55.
6    (23) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-55.
16    (24) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), computers and communications equipment
18utilized for any hospital purpose and equipment used in the
19diagnosis, analysis, or treatment of hospital patients sold to
20a lessor who leases the equipment, under a lease of one year or
21longer executed or in effect at the time of the purchase, to a
22hospital 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    (25) Beginning on August 2, 2001 (the effective date of

 

 

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1Public Act 92-227), personal property sold to a lessor who
2leases the property, under a lease of one year or longer
3executed or in effect at the time of the purchase, to a
4governmental body that has been issued an active tax exemption
5identification number by the Department under Section 1g of
6the Retailers' Occupation Tax Act. This paragraph is exempt
7from the provisions of Section 3-55.
8    (26) Beginning on January 1, 2002 and through June 30,
92016, tangible personal property purchased from an Illinois
10retailer by a taxpayer engaged in centralized purchasing
11activities in Illinois who will, upon receipt of the property
12in Illinois, temporarily store the property in Illinois (i)
13for the purpose of subsequently transporting it outside this
14State for use or consumption thereafter solely outside this
15State or (ii) for the purpose of being processed, fabricated,
16or manufactured into, attached to, or incorporated into other
17tangible personal property to be transported outside this
18State and thereafter used or consumed solely outside this
19State. The Director of Revenue shall, pursuant to rules
20adopted in accordance with the Illinois Administrative
21Procedure Act, issue a permit to any taxpayer in good standing
22with the Department who is eligible for the exemption under
23this paragraph (26). The permit issued under this paragraph
24(26) shall authorize the holder, to the extent and in the
25manner specified in the rules adopted under this Act, to
26purchase tangible personal property from a retailer exempt

 

 

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1from the taxes imposed by this Act. Taxpayers shall maintain
2all necessary books and records to substantiate the use and
3consumption of all such tangible personal property outside of
4the State of Illinois.
5    (27) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued
10under Title IV of the Environmental Protection Act. This
11paragraph is exempt from the provisions of Section 3-55.
12    (28) Tangible personal property sold to a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt
21instruments issued by the public-facilities corporation in
22connection with the development of the municipal convention
23hall. This exemption includes existing public-facilities
24corporations as provided in Section 11-65-25 of the Illinois
25Municipal Code. This paragraph is exempt from the provisions
26of Section 3-55.

 

 

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1    (29) Beginning January 1, 2010 and continuing through
2December 31, 2029, 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. However, until January 1, 2024, this
9exemption excludes any materials, parts, equipment,
10components, and consumable supplies used in the modification,
11replacement, repair, and maintenance of aircraft engines or
12power plants, whether such engines or power plants are
13installed or uninstalled upon any such aircraft. "Consumable
14supplies" include, but are not limited to, adhesive, tape,
15sandpaper, general purpose lubricants, cleaning solution,
16latex gloves, and protective films.
17    Beginning January 1, 2010 and continuing through December
1831, 2023, this exemption applies only to the transfer of
19qualifying tangible personal property incident to the
20modification, refurbishment, completion, replacement, repair,
21or maintenance of an aircraft by persons who (i) hold an Air
22Agency Certificate and are empowered to operate an approved
23repair station by the Federal Aviation Administration, (ii)
24have a Class IV Rating, and (iii) conduct operations in
25accordance with Part 145 of the Federal Aviation Regulations.
26The exemption does not include aircraft operated by a

 

 

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1commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part
3129 of the Federal Aviation Regulations. From January 1, 2024
4through December 31, 2029, this exemption applies only to the
5use of qualifying tangible personal property by: (A) persons
6who modify, refurbish, complete, repair, replace, or maintain
7aircraft and who (i) hold an Air Agency Certificate and are
8empowered to operate an approved repair station by the Federal
9Aviation Administration, (ii) have a Class IV Rating, and
10(iii) conduct operations in accordance with Part 145 of the
11Federal Aviation Regulations; and (B) persons who engage in
12the modification, replacement, repair, and maintenance of
13aircraft engines or power plants without regard to whether or
14not those persons meet the qualifications of item (A).
15    The changes made to this paragraph (29) by Public Act
1698-534 are declarative of existing law. It is the intent of the
17General Assembly that the exemption under this paragraph (29)
18applies continuously from January 1, 2010 through December 31,
192024; however, no claim for credit or refund is allowed for
20taxes paid as a result of the disallowance of this exemption on
21or after January 1, 2015 and prior to February 5, 2020 (the
22effective date of Public Act 101-629).
23    (30) Beginning January 1, 2017 and through December 31,
242026, menstrual pads, tampons, and menstrual cups.
25    (31) Tangible personal property transferred to a purchaser
26who is exempt from tax by operation of federal law. This

 

 

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1paragraph is exempt from the provisions of Section 3-55.
2    (32) Qualified tangible personal property used in the
3construction or operation of a data center that has been
4granted a certificate of exemption by the Department of
5Commerce and Economic Opportunity, whether that tangible
6personal property is purchased by the owner, operator, or
7tenant of the data center or by a contractor or subcontractor
8of the owner, operator, or tenant. Data centers that would
9have qualified for a certificate of exemption prior to January
101, 2020 had Public Act 101-31 been in effect, may apply for and
11obtain an exemption for subsequent purchases of computer
12equipment or enabling software purchased or leased to upgrade,
13supplement, or replace computer equipment or enabling software
14purchased or leased in the original investment that would have
15qualified.
16    The Department of Commerce and Economic Opportunity shall
17grant a certificate of exemption under this item (32) to
18qualified data centers as defined by Section 605-1025 of the
19Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    For the purposes of this item (32):
22        "Data center" means a building or a series of
23    buildings rehabilitated or constructed to house working
24    servers in one physical location or multiple sites within
25    the State of Illinois.
26        "Qualified tangible personal property" means:

 

 

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1    electrical systems and equipment; climate control and
2    chilling equipment and systems; mechanical systems and
3    equipment; monitoring and secure systems; emergency
4    generators; hardware; computers; servers; data storage
5    devices; network connectivity equipment; racks; cabinets;
6    telecommunications cabling infrastructure; raised floor
7    systems; peripheral components or systems; software;
8    mechanical, electrical, or plumbing systems; battery
9    systems; cooling systems and towers; temperature control
10    systems; other cabling; and other data center
11    infrastructure equipment and systems necessary to operate
12    qualified tangible personal property, including fixtures;
13    and component parts of any of the foregoing, including
14    installation, maintenance, repair, refurbishment, and
15    replacement of qualified tangible personal property to
16    generate, transform, transmit, distribute, or manage
17    electricity necessary to operate qualified tangible
18    personal property; and all other tangible personal
19    property that is essential to the operations of a computer
20    data center. The term "qualified tangible personal
21    property" also includes building materials physically
22    incorporated into in to 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 (32) is exempt from the provisions of Section
23-55.
3    (33) Beginning July 1, 2022, breast pumps, breast pump
4collection and storage supplies, and breast pump kits. This
5item (33) is exempt from the provisions of Section 3-55. As
6used in this item (33):
7        "Breast pump" means an electrically controlled or
8    manually controlled pump device designed or marketed to be
9    used to express milk from a human breast during lactation,
10    including the pump device and any battery, AC adapter, or
11    other power supply unit that is used to power the pump
12    device and is packaged and sold with the pump device at the
13    time of sale.
14        "Breast pump collection and storage supplies" means
15    items of tangible personal property designed or marketed
16    to be used in conjunction with a breast pump to collect
17    milk expressed from a human breast and to store collected
18    milk until it is ready for consumption.
19        "Breast pump collection and storage supplies"
20    includes, but is not limited to: breast shields and breast
21    shield connectors; breast pump tubes and tubing adapters;
22    breast pump valves and membranes; backflow protectors and
23    backflow protector adaptors; bottles and bottle caps
24    specific to the operation of the breast pump; and breast
25    milk storage bags.
26        "Breast pump collection and storage supplies" does not

 

 

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1    include: (1) bottles and bottle caps not specific to the
2    operation of the breast pump; (2) breast pump travel bags
3    and other similar carrying accessories, including ice
4    packs, labels, and other similar products; (3) breast pump
5    cleaning supplies; (4) nursing bras, bra pads, breast
6    shells, and other similar products; and (5) creams,
7    ointments, and other similar products that relieve
8    breastfeeding-related symptoms or conditions of the
9    breasts or nipples, unless sold as part of a breast pump
10    kit that is pre-packaged by the breast pump manufacturer
11    or distributor.
12        "Breast pump kit" means a kit that: (1) contains no
13    more than a breast pump, breast pump collection and
14    storage supplies, a rechargeable battery for operating the
15    breast pump, a breastmilk cooler, bottle stands, ice
16    packs, and a breast pump carrying case; and (2) is
17    pre-packaged as a breast pump kit by the breast pump
18    manufacturer or distributor.
19    (34) Tangible personal property sold by or on behalf of
20the State Treasurer pursuant to the Revised Uniform Unclaimed
21Property Act. This item (34) is exempt from the provisions of
22Section 3-55.
23    (35) Beginning on January 1, 2024, tangible personal
24property purchased by an active duty member of the armed
25forces of the United States who presents valid military
26identification and purchases the property using a form of

 

 

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1payment where the federal government is the payor. The member
2of the armed forces must complete, at the point of sale, a form
3prescribed by the Department of Revenue documenting that the
4transaction is eligible for the exemption under this
5paragraph. Retailers must keep the form as documentation of
6the exemption in their records for a period of not less than 6
7years. "Armed forces of the United States" means the United
8States Army, Navy, Air Force, Marine Corps, or Coast Guard.
9This paragraph is exempt from the provisions of Section 3-55.
10    (36) Beginning July 1, 2024, home-delivered meals provided
11to Medicare or Medicaid recipients when payment is made by an
12intermediary, such as a Medicare Administrative Contractor, a
13Managed Care Organization, or a Medicare Advantage
14Organization, pursuant to a government contract. This
15paragraph (35) is exempt from the provisions of Section 3-55.
16(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
17Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1875-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
19Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
20eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
21revised 9-19-23.)
 
22    Section 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    (Text of Section before amendment by P.A. 103-384)
2    Sec. 2-5. Exemptions. Gross receipts from proceeds from
3the sale of the following tangible personal property are
4exempt from the tax imposed by this Act:
5        (1) Farm chemicals.
6        (2) Farm machinery and equipment, both new and used,
7    including that manufactured on special order, certified by
8    the purchaser to be used primarily for production
9    agriculture or State or federal agricultural programs,
10    including individual replacement parts for the machinery
11    and equipment, including machinery and equipment purchased
12    for lease, and including implements of husbandry defined
13    in Section 1-130 of the Illinois Vehicle Code, farm
14    machinery and agricultural chemical and fertilizer
15    spreaders, and nurse wagons required to be registered
16    under Section 3-809 of the Illinois Vehicle Code, but
17    excluding other motor vehicles required to be registered
18    under the Illinois Vehicle Code. Horticultural polyhouses
19    or hoop houses used for propagating, growing, or
20    overwintering plants shall be considered farm machinery
21    and equipment under this item (2). Agricultural chemical
22    tender tanks and dry boxes shall include units sold
23    separately from a motor vehicle required to be licensed
24    and units sold mounted on a motor vehicle required to be
25    licensed, if the selling price of the tender is separately
26    stated.

 

 

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1        Farm machinery and equipment shall include precision
2    farming equipment that is installed or purchased to be
3    installed on farm machinery and equipment including, but
4    not limited to, tractors, harvesters, sprayers, planters,
5    seeders, or spreaders. Precision farming equipment
6    includes, but is not limited to, soil testing sensors,
7    computers, monitors, software, global positioning and
8    mapping systems, and other such equipment.
9        Farm machinery and equipment also includes computers,
10    sensors, software, and related equipment used primarily in
11    the computer-assisted operation of production agriculture
12    facilities, equipment, and activities such as, but not
13    limited to, the collection, monitoring, and correlation of
14    animal and crop data for the purpose of formulating animal
15    diets and agricultural chemicals.
16        Beginning on January 1, 2024, farm machinery and
17    equipment also includes electrical power generation
18    equipment used primarily for production agriculture.
19        This item (2) is exempt from the provisions of Section
20    2-70.
21        (3) Until July 1, 2003, distillation machinery and
22    equipment, sold as a unit or kit, assembled or installed
23    by the retailer, certified by the user to be used only for
24    the production of ethyl alcohol that will be used for
25    consumption as motor fuel or as a component of motor fuel
26    for the personal use of the user, and not subject to sale

 

 

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1    or resale.
2        (4) Until July 1, 2003 and beginning again September
3    1, 2004 through August 30, 2014, graphic arts machinery
4    and equipment, including repair and replacement parts,
5    both new and used, and including that manufactured on
6    special order or purchased for lease, certified by the
7    purchaser to be used primarily for graphic arts
8    production. Equipment includes chemicals or chemicals
9    acting as catalysts but only if the chemicals or chemicals
10    acting as catalysts effect a direct and immediate change
11    upon a graphic arts product. Beginning on July 1, 2017,
12    graphic arts machinery and equipment is included in the
13    manufacturing and assembling machinery and equipment
14    exemption under paragraph (14).
15        (5) A motor vehicle that is used for automobile
16    renting, as defined in the Automobile Renting Occupation
17    and Use Tax Act. This paragraph is exempt from the
18    provisions of Section 2-70.
19        (6) Personal property sold by a teacher-sponsored
20    student organization affiliated with an elementary or
21    secondary school located in Illinois.
22        (7) Until July 1, 2003, proceeds of that portion of
23    the selling price of a passenger car the sale of which is
24    subject to the Replacement Vehicle Tax.
25        (8) Personal property sold to an Illinois county fair
26    association for use in conducting, operating, or promoting

 

 

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

 

 

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1    charitable, religious, or educational purposes, or to a
2    not-for-profit corporation, society, association,
3    foundation, institution, or organization that has no
4    compensated officers or employees and that is organized
5    and operated primarily for the recreation of persons 55
6    years of age or older. A limited liability company may
7    qualify for the exemption under this paragraph only if the
8    limited liability company is organized and operated
9    exclusively for educational purposes. On and after July 1,
10    1987, however, no entity otherwise eligible for this
11    exemption shall make tax-free purchases unless it has an
12    active identification number issued by the Department.
13        (12) (Blank).
14        (12-5) On and after July 1, 2003 and through June 30,
15    2004, motor vehicles of the second division with a gross
16    vehicle weight in excess of 8,000 pounds that are subject
17    to the commercial distribution fee imposed under Section
18    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
19    2004 and through June 30, 2005, the use in this State of
20    motor vehicles of the second division: (i) with a gross
21    vehicle weight rating in excess of 8,000 pounds; (ii) that
22    are subject to the commercial distribution fee imposed
23    under Section 3-815.1 of the Illinois Vehicle Code; and
24    (iii) that are primarily used for commercial purposes.
25    Through June 30, 2005, this exemption applies to repair
26    and replacement parts added after the initial purchase of

 

 

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1    such a motor vehicle if that motor vehicle is used in a
2    manner that would qualify for the rolling stock exemption
3    otherwise provided for in this Act. For purposes of this
4    paragraph, "used for commercial purposes" means the
5    transportation of persons or property in furtherance of
6    any commercial or industrial enterprise whether for-hire
7    or not.
8        (13) Proceeds from sales to owners, lessors, or
9    shippers of tangible personal property that is utilized by
10    interstate carriers for hire for use as rolling stock
11    moving in interstate commerce and equipment operated by a
12    telecommunications provider, licensed as a common carrier
13    by the Federal Communications Commission, which is
14    permanently installed in or affixed to aircraft moving in
15    interstate commerce.
16        (14) Machinery and equipment that will be used by the
17    purchaser, or a lessee of the purchaser, primarily in the
18    process of manufacturing or assembling tangible personal
19    property for wholesale or retail sale or lease, whether
20    the sale or lease is made directly by the manufacturer or
21    by some other person, whether the materials used in the
22    process are owned by the manufacturer or some other
23    person, or whether the sale or lease is made apart from or
24    as an incident to the seller's engaging in the service
25    occupation of producing machines, tools, dies, jigs,
26    patterns, gauges, or other similar items of no commercial

 

 

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

 

 

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1    of Section 2-70.
2        (17) Tangible personal property sold to a common
3    carrier by rail or motor that receives the physical
4    possession of the property in Illinois and that transports
5    the property, or shares with another common carrier in the
6    transportation of the property, out of Illinois on a
7    standard uniform bill of lading showing the seller of the
8    property as the shipper or consignor of the property to a
9    destination outside Illinois, for use outside Illinois.
10        (18) Legal tender, currency, medallions, or gold or
11    silver coinage issued by the State of Illinois, the
12    government of the United States of America, or the
13    government of any foreign country, and bullion.
14        (19) Until July 1, 2003, oil field exploration,
15    drilling, and production equipment, including (i) rigs and
16    parts of rigs, rotary rigs, cable tool rigs, and workover
17    rigs, (ii) pipe and tubular goods, including casing and
18    drill strings, (iii) pumps and pump-jack units, (iv)
19    storage tanks and flow lines, (v) any individual
20    replacement part for oil field exploration, drilling, and
21    production equipment, and (vi) machinery and equipment
22    purchased for lease; but excluding motor vehicles required
23    to be registered under the Illinois Vehicle Code.
24        (20) Photoprocessing machinery and equipment,
25    including repair and replacement parts, both new and used,
26    including that manufactured on special order, certified by

 

 

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1    the purchaser to be used primarily for photoprocessing,
2    and including photoprocessing machinery and equipment
3    purchased for lease.
4        (21) Until July 1, 2028, coal and aggregate
5    exploration, mining, off-highway hauling, processing,
6    maintenance, and reclamation equipment, including
7    replacement parts and equipment, and including equipment
8    purchased for lease, but excluding motor vehicles required
9    to be registered under the Illinois Vehicle Code. The
10    changes made to this Section by Public Act 97-767 apply on
11    and after July 1, 2003, but no claim for credit or refund
12    is allowed on or after August 16, 2013 (the effective date
13    of Public Act 98-456) for such taxes paid during the
14    period beginning July 1, 2003 and ending on August 16,
15    2013 (the effective date of Public Act 98-456).
16        (22) Until June 30, 2013, fuel and petroleum products
17    sold to or used by an air carrier, certified by the carrier
18    to be used for consumption, shipment, or storage in the
19    conduct of its business as an air common carrier, for a
20    flight destined for or returning from a location or
21    locations outside the United States without regard to
22    previous or subsequent domestic stopovers.
23        Beginning July 1, 2013, fuel and petroleum products
24    sold to or used by an air carrier, certified by the carrier
25    to be used for consumption, shipment, or storage in the
26    conduct of its business as an air common carrier, for a

 

 

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1    flight that (i) is engaged in foreign trade or is engaged
2    in trade between the United States and any of its
3    possessions and (ii) transports at least one individual or
4    package for hire from the city of origination to the city
5    of final destination on the same aircraft, without regard
6    to a change in the flight number of that aircraft.
7        (23) A transaction in which the purchase order is
8    received by a florist who is located outside Illinois, but
9    who has a florist located in Illinois deliver the property
10    to the purchaser or the purchaser's donee in Illinois.
11        (24) Fuel consumed or used in the operation of ships,
12    barges, or vessels that are used primarily in or for the
13    transportation of property or the conveyance of persons
14    for hire on rivers bordering on this State if the fuel is
15    delivered by the seller to the purchaser's barge, ship, or
16    vessel while it is afloat upon that bordering river.
17        (25) Except as provided in item (25-5) of this
18    Section, a motor vehicle sold in this State to a
19    nonresident even though the motor vehicle is delivered to
20    the nonresident in this State, if the motor vehicle is not
21    to be titled in this State, and if a drive-away permit is
22    issued to the motor vehicle as provided in Section 3-603
23    of the Illinois Vehicle Code or if the nonresident
24    purchaser has vehicle registration plates to transfer to
25    the motor vehicle upon returning to his or her home state.
26    The issuance of the drive-away permit or having the

 

 

SB3476 Enrolled- 135 -LRB103 34190 HLH 64013 b

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

 

 

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1    following the filing of an intent to title the vehicle in
2    the purchaser's state of residence if the purchaser titles
3    the vehicle in his or her state of residence within 30 days
4    after the date of sale. The tax collected under this Act in
5    accordance with this item (25-5) shall be proportionately
6    distributed as if the tax were collected at the 6.25%
7    general rate imposed under this Act.
8        (25-7) Beginning on July 1, 2007, no tax is imposed
9    under this Act on the sale of an aircraft, as defined in
10    Section 3 of the Illinois Aeronautics Act, if all of the
11    following conditions are met:
12            (1) the aircraft leaves this State within 15 days
13        after the later of either the issuance of the final
14        billing for the sale of the aircraft, or the
15        authorized approval for return to service, completion
16        of the maintenance record entry, and completion of the
17        test flight and ground test for inspection, as
18        required by 14 CFR 91.407;
19            (2) the aircraft is not based or registered in
20        this State after the sale of the aircraft; and
21            (3) the seller retains in his or her books and
22        records and provides to the Department a signed and
23        dated certification from the purchaser, on a form
24        prescribed by the Department, certifying that the
25        requirements of this item (25-7) are met. The
26        certificate must also include the name and address of

 

 

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1        the purchaser, the address of the location where the
2        aircraft is to be titled or registered, the address of
3        the primary physical location of the aircraft, and
4        other information that the Department may reasonably
5        require.
6        For purposes of this item (25-7):
7        "Based in this State" means hangared, stored, or
8    otherwise used, excluding post-sale customizations as
9    defined in this Section, for 10 or more days in each
10    12-month period immediately following the date of the sale
11    of the aircraft.
12        "Registered in this State" means an aircraft
13    registered with the Department of Transportation,
14    Aeronautics Division, or titled or registered with the
15    Federal Aviation Administration to an address located in
16    this State.
17        This paragraph (25-7) is exempt from the provisions of
18    Section 2-70.
19        (26) Semen used for artificial insemination of
20    livestock for direct agricultural production.
21        (27) Horses, or interests in horses, registered with
22    and meeting the requirements of any of the Arabian Horse
23    Club Registry of America, Appaloosa Horse Club, American
24    Quarter Horse Association, United States Trotting
25    Association, or Jockey Club, as appropriate, used for
26    purposes of breeding or racing for prizes. This item (27)

 

 

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1    is exempt from the provisions of Section 2-70, and the
2    exemption provided for under this item (27) applies for
3    all periods beginning May 30, 1995, but no claim for
4    credit or refund is allowed on or after January 1, 2008
5    (the effective date of Public Act 95-88) for such taxes
6    paid during the period beginning May 30, 2000 and ending
7    on January 1, 2008 (the effective date of Public Act
8    95-88).
9        (28) Computers and communications equipment utilized
10    for any hospital purpose and equipment used in the
11    diagnosis, analysis, or treatment of hospital patients
12    sold to a lessor who leases the equipment, under a lease of
13    one year or longer executed or in effect at the time of the
14    purchase, to a hospital that has been issued an active tax
15    exemption identification number by the Department under
16    Section 1g of this Act.
17        (29) Personal property sold to a lessor who leases the
18    property, under a lease of one year or longer executed or
19    in effect at the time of the purchase, to a governmental
20    body that has been issued an active tax exemption
21    identification number by the Department under Section 1g
22    of this Act.
23        (30) Beginning with taxable years ending on or after
24    December 31, 1995 and ending with taxable years ending on
25    or before December 31, 2004, personal property that is
26    donated for disaster relief to be used in a State or

 

 

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

 

 

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

 

 

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1    fundraising events (i) for the benefit of private home
2    instruction or (ii) for which the fundraising entity
3    purchases the personal property sold at the events from
4    another individual or entity that sold the property for
5    the purpose of resale by the fundraising entity and that
6    profits from the sale to the fundraising entity. This
7    paragraph is exempt from the provisions of Section 2-70.
8        (35) Beginning January 1, 2000 and through December
9    31, 2001, new or used automatic vending machines that
10    prepare and serve hot food and beverages, including
11    coffee, soup, and other items, and replacement parts for
12    these machines. Beginning January 1, 2002 and through June
13    30, 2003, machines and parts for machines used in
14    commercial, coin-operated amusement and vending business
15    if a use or occupation tax is paid on the gross receipts
16    derived from the use of the commercial, coin-operated
17    amusement and vending machines. This paragraph is exempt
18    from the provisions of Section 2-70.
19        (35-5) Beginning August 23, 2001 and through June 30,
20    2016, food for human consumption that is to be consumed
21    off the premises where it is sold (other than alcoholic
22    beverages, soft drinks, and food that has been prepared
23    for immediate consumption) and prescription and
24    nonprescription medicines, drugs, medical appliances, and
25    insulin, urine testing materials, syringes, and needles
26    used by diabetics, for human use, when purchased for use

 

 

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1    by a person receiving medical assistance under Article V
2    of the Illinois Public Aid Code who resides in a licensed
3    long-term care facility, as defined in the Nursing Home
4    Care Act, or a licensed facility as defined in the ID/DD
5    Community Care Act, the MC/DD Act, or the Specialized
6    Mental Health Rehabilitation Act of 2013.
7        (36) Beginning August 2, 2001, computers and
8    communications equipment utilized for any hospital purpose
9    and equipment used in the diagnosis, analysis, or
10    treatment of hospital patients sold to a lessor who leases
11    the equipment, under a lease of one year or longer
12    executed or in effect at the time of the purchase, to a
13    hospital that has been issued an active tax exemption
14    identification number by the Department under Section 1g
15    of this Act. This paragraph is exempt from the provisions
16    of Section 2-70.
17        (37) Beginning August 2, 2001, personal property sold
18    to a lessor who leases the property, under a lease of one
19    year or longer executed or in effect at the time of the
20    purchase, to a governmental body that has been issued an
21    active tax exemption identification number by the
22    Department under Section 1g of this Act. This paragraph is
23    exempt from the provisions of Section 2-70.
24        (38) Beginning on January 1, 2002 and through June 30,
25    2016, tangible personal property purchased from an
26    Illinois retailer by a taxpayer engaged in centralized

 

 

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

 

 

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1    permit issued under Title IV of the Environmental
2    Protection Act. This paragraph is exempt from the
3    provisions of Section 2-70.
4        (40) Beginning January 1, 2010 and continuing through
5    December 31, 2029, materials, parts, equipment,
6    components, and furnishings incorporated into or upon an
7    aircraft as part of the modification, refurbishment,
8    completion, replacement, repair, or maintenance of the
9    aircraft. This exemption includes consumable supplies used
10    in the modification, refurbishment, completion,
11    replacement, repair, and maintenance of aircraft. However,
12    until January 1, 2024, this exemption excludes any
13    materials, parts, equipment, components, and consumable
14    supplies used in the modification, replacement, repair,
15    and maintenance of aircraft engines or power plants,
16    whether such engines or power plants are installed or
17    uninstalled upon any such aircraft. "Consumable supplies"
18    include, but are not limited to, adhesive, tape,
19    sandpaper, general purpose lubricants, cleaning solution,
20    latex gloves, and protective films.
21        Beginning January 1, 2010 and continuing through
22    December 31, 2023, this exemption applies only to the sale
23    of qualifying tangible personal property to persons who
24    modify, refurbish, complete, replace, or maintain an
25    aircraft and who (i) hold an Air Agency Certificate and
26    are empowered to operate an approved repair station by the

 

 

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

 

 

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1    disallowance of this exemption on or after January 1, 2015
2    and prior to February 5, 2020 (the effective date of
3    Public Act 101-629).
4        (41) Tangible personal property sold to a
5    public-facilities corporation, as described in Section
6    11-65-10 of the Illinois Municipal Code, for purposes of
7    constructing or furnishing a municipal convention hall,
8    but only if the legal title to the municipal convention
9    hall is transferred to the municipality without any
10    further consideration by or on behalf of the municipality
11    at the time of the completion of the municipal convention
12    hall or upon the retirement or redemption of any bonds or
13    other debt instruments issued by the public-facilities
14    corporation in connection with the development of the
15    municipal convention hall. This exemption includes
16    existing public-facilities corporations as provided in
17    Section 11-65-25 of the Illinois Municipal Code. This
18    paragraph is exempt from the provisions of Section 2-70.
19        (42) Beginning January 1, 2017 and through December
20    31, 2026, menstrual pads, tampons, and menstrual cups.
21        (43) Merchandise that is subject to the Rental
22    Purchase Agreement Occupation and Use Tax. The purchaser
23    must certify that the item is purchased to be rented
24    subject to a rental-purchase rental purchase agreement, as
25    defined in the Rental-Purchase Rental Purchase Agreement
26    Act, and provide proof of registration under the Rental

 

 

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1    Purchase Agreement Occupation and Use Tax Act. This
2    paragraph is exempt from the provisions of Section 2-70.
3        (44) Qualified tangible personal property used in the
4    construction or operation of a data center that has been
5    granted a certificate of exemption by the Department of
6    Commerce and Economic Opportunity, whether that tangible
7    personal property is purchased by the owner, operator, or
8    tenant of the data center or by a contractor or
9    subcontractor of the owner, operator, or tenant. Data
10    centers that would have qualified for a certificate of
11    exemption prior to January 1, 2020 had Public Act 101-31
12    been in effect, may apply for and obtain an exemption for
13    subsequent purchases of computer equipment or enabling
14    software purchased or leased to upgrade, supplement, or
15    replace computer equipment or enabling software purchased
16    or leased in the original investment that would have
17    qualified.
18        The Department of Commerce and Economic Opportunity
19    shall grant a certificate of exemption under this item
20    (44) to qualified data centers as defined by Section
21    605-1025 of the Department of Commerce and Economic
22    Opportunity Law of the Civil Administrative Code of
23    Illinois.
24        For the purposes of this item (44):
25            "Data center" means a building or a series of
26        buildings rehabilitated or constructed to house

 

 

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

 

 

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

 

 

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1    2-70. As used in this item (46):
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        (47) Tangible personal property sold by or on behalf
15    of the State Treasurer pursuant to the Revised Uniform
16    Unclaimed Property Act. This item (47) is exempt from the
17    provisions of Section 2-70.
18(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
19102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
20Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
215-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
225-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
236-7-23; 103-154, eff. 6-30-23; revised 9-26-23.)
 
24    (Text of Section after amendment by P.A. 103-384)
25    Sec. 2-5. Exemptions. Gross receipts from proceeds from

 

 

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

 

 

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1    installed on farm machinery and equipment including, but
2    not limited to, tractors, harvesters, sprayers, planters,
3    seeders, or spreaders. Precision farming equipment
4    includes, but is not limited to, soil testing sensors,
5    computers, monitors, software, global positioning and
6    mapping systems, and other such equipment.
7        Farm machinery and equipment also includes computers,
8    sensors, software, and related equipment used primarily in
9    the computer-assisted operation of production agriculture
10    facilities, equipment, and activities such as, but not
11    limited to, the collection, monitoring, and correlation of
12    animal and crop data for the purpose of formulating animal
13    diets and agricultural chemicals.
14        Beginning on January 1, 2024, farm machinery and
15    equipment also includes electrical power generation
16    equipment used primarily for production agriculture.
17        This item (2) is exempt from the provisions of Section
18    2-70.
19        (3) Until July 1, 2003, distillation machinery and
20    equipment, sold as a unit or kit, assembled or installed
21    by the retailer, certified by the user to be used only for
22    the production of ethyl alcohol that will be used for
23    consumption as motor fuel or as a component of motor fuel
24    for the personal use of the user, and not subject to sale
25    or resale.
26        (4) Until July 1, 2003 and beginning again September

 

 

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1    1, 2004 through August 30, 2014, graphic arts machinery
2    and equipment, including repair and replacement parts,
3    both new and used, and including that manufactured on
4    special order or purchased for lease, certified by the
5    purchaser to be used primarily for graphic arts
6    production. Equipment includes chemicals or chemicals
7    acting as catalysts but only if the chemicals or chemicals
8    acting as catalysts effect a direct and immediate change
9    upon a graphic arts product. Beginning on July 1, 2017,
10    graphic arts machinery and equipment is included in the
11    manufacturing and assembling machinery and equipment
12    exemption under paragraph (14).
13        (5) A motor vehicle that is used for automobile
14    renting, as defined in the Automobile Renting Occupation
15    and Use Tax Act. This paragraph is exempt from the
16    provisions of Section 2-70.
17        (6) Personal property sold by a teacher-sponsored
18    student organization affiliated with an elementary or
19    secondary school located in Illinois.
20        (7) Until July 1, 2003, proceeds of that portion of
21    the selling price of a passenger car the sale of which is
22    subject to the Replacement Vehicle Tax.
23        (8) Personal property sold to an Illinois county fair
24    association for use in conducting, operating, or promoting
25    the county fair.
26        (9) Personal property sold to a not-for-profit arts or

 

 

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

 

 

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1    not-for-profit corporation, society, association,
2    foundation, institution, or organization that has no
3    compensated officers or employees and that is organized
4    and operated primarily for the recreation of persons 55
5    years of age or older. A limited liability company may
6    qualify for the exemption under this paragraph only if the
7    limited liability company is organized and operated
8    exclusively for educational purposes. On and after July 1,
9    1987, however, no entity otherwise eligible for this
10    exemption shall make tax-free purchases unless it has an
11    active identification number issued by the Department.
12        (12) (Blank).
13        (12-5) On and after July 1, 2003 and through June 30,
14    2004, motor vehicles of the second division with a gross
15    vehicle weight in excess of 8,000 pounds that are subject
16    to the commercial distribution fee imposed under Section
17    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
18    2004 and through June 30, 2005, the use in this State of
19    motor vehicles of the second division: (i) with a gross
20    vehicle weight rating in excess of 8,000 pounds; (ii) that
21    are subject to the commercial distribution fee imposed
22    under Section 3-815.1 of the Illinois Vehicle Code; and
23    (iii) that are primarily used for commercial purposes.
24    Through June 30, 2005, this exemption applies to repair
25    and replacement parts added after the initial purchase of
26    such a motor vehicle if that motor vehicle is used in a

 

 

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

 

 

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

 

 

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

 

 

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1    and including photoprocessing machinery and equipment
2    purchased for lease.
3        (21) Until July 1, 2028, coal and aggregate
4    exploration, mining, off-highway hauling, processing,
5    maintenance, and reclamation equipment, including
6    replacement parts and equipment, and including equipment
7    purchased for lease, but excluding motor vehicles required
8    to be registered under the Illinois Vehicle Code. The
9    changes made to this Section by Public Act 97-767 apply on
10    and after July 1, 2003, but no claim for credit or refund
11    is allowed on or after August 16, 2013 (the effective date
12    of Public Act 98-456) for such taxes paid during the
13    period beginning July 1, 2003 and ending on August 16,
14    2013 (the effective date of Public Act 98-456).
15        (22) Until June 30, 2013, fuel and petroleum products
16    sold to or used by an air carrier, certified by the carrier
17    to be used for consumption, shipment, or storage in the
18    conduct of its business as an air common carrier, for a
19    flight destined for or returning from a location or
20    locations outside the United States without regard to
21    previous or subsequent domestic stopovers.
22        Beginning July 1, 2013, fuel and petroleum products
23    sold to or used by an air carrier, certified by the carrier
24    to be used for consumption, shipment, or storage in the
25    conduct of its business as an air common carrier, for a
26    flight that (i) is engaged in foreign trade or is engaged

 

 

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1    in trade between the United States and any of its
2    possessions and (ii) transports at least one individual or
3    package for hire from the city of origination to the city
4    of final destination on the same aircraft, without regard
5    to a change in the flight number of that aircraft.
6        (23) A transaction in which the purchase order is
7    received by a florist who is located outside Illinois, but
8    who has a florist located in Illinois deliver the property
9    to the purchaser or the purchaser's donee in Illinois.
10        (24) Fuel consumed or used in the operation of ships,
11    barges, or vessels that are used primarily in or for the
12    transportation of property or the conveyance of persons
13    for hire on rivers bordering on this State if the fuel is
14    delivered by the seller to the purchaser's barge, ship, or
15    vessel while it is afloat upon that bordering river.
16        (25) Except as provided in item (25-5) of this
17    Section, a motor vehicle sold in this State to a
18    nonresident even though the motor vehicle is delivered to
19    the nonresident in this State, if the motor vehicle is not
20    to be titled in this State, and if a drive-away permit is
21    issued to the motor vehicle as provided in Section 3-603
22    of the Illinois Vehicle Code or if the nonresident
23    purchaser has vehicle registration plates to transfer to
24    the motor vehicle upon returning to his or her home state.
25    The issuance of the drive-away permit or having the
26    out-of-state registration plates to be transferred is

 

 

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

 

 

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1    the purchaser's state of residence if the purchaser titles
2    the vehicle in his or her state of residence within 30 days
3    after the date of sale. The tax collected under this Act in
4    accordance with this item (25-5) shall be proportionately
5    distributed as if the tax were collected at the 6.25%
6    general rate imposed under this Act.
7        (25-7) Beginning on July 1, 2007, no tax is imposed
8    under this Act on the sale of an aircraft, as defined in
9    Section 3 of the Illinois Aeronautics Act, if all of the
10    following conditions are met:
11            (1) the aircraft leaves this State within 15 days
12        after the later of either the issuance of the final
13        billing for the sale of the aircraft, or the
14        authorized approval for return to service, completion
15        of the maintenance record entry, and completion of the
16        test flight and ground test for inspection, as
17        required by 14 CFR 91.407;
18            (2) the aircraft is not based or registered in
19        this State after the sale of the aircraft; and
20            (3) the seller retains in his or her books and
21        records and provides to the Department a signed and
22        dated certification from the purchaser, on a form
23        prescribed by the Department, certifying that the
24        requirements of this item (25-7) are met. The
25        certificate must also include the name and address of
26        the purchaser, the address of the location where the

 

 

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1        aircraft is to be titled or registered, the address of
2        the primary physical location of the aircraft, and
3        other information that the Department may reasonably
4        require.
5        For purposes of this item (25-7):
6        "Based in this State" means hangared, stored, or
7    otherwise used, excluding post-sale customizations as
8    defined in this Section, for 10 or more days in each
9    12-month period immediately following the date of the sale
10    of the aircraft.
11        "Registered in this State" means an aircraft
12    registered with the Department of Transportation,
13    Aeronautics Division, or titled or registered with the
14    Federal Aviation Administration to an address located in
15    this State.
16        This paragraph (25-7) is exempt from the provisions of
17    Section 2-70.
18        (26) Semen used for artificial insemination of
19    livestock for direct agricultural production.
20        (27) Horses, or interests in horses, registered with
21    and meeting the requirements of any of the Arabian Horse
22    Club Registry of America, Appaloosa Horse Club, American
23    Quarter Horse Association, United States Trotting
24    Association, or Jockey Club, as appropriate, used for
25    purposes of breeding or racing for prizes. This item (27)
26    is exempt from the provisions of Section 2-70, and the

 

 

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1    exemption provided for under this item (27) applies for
2    all periods beginning May 30, 1995, but no claim for
3    credit or refund is allowed on or after January 1, 2008
4    (the effective date of Public Act 95-88) for such taxes
5    paid during the period beginning May 30, 2000 and ending
6    on January 1, 2008 (the effective date of Public Act
7    95-88).
8        (28) Computers and communications equipment utilized
9    for any hospital purpose and equipment used in the
10    diagnosis, analysis, or treatment of hospital patients
11    sold to a lessor who leases the equipment, under a lease of
12    one year or longer executed or in effect at the time of the
13    purchase, to a hospital that has been issued an active tax
14    exemption identification number by the Department under
15    Section 1g of this Act.
16        (29) Personal property sold to a lessor who leases the
17    property, under a lease of one year or longer executed or
18    in effect at the time of the purchase, to a governmental
19    body that has been issued an active tax exemption
20    identification number by the Department under Section 1g
21    of this Act.
22        (30) Beginning with taxable years ending on or after
23    December 31, 1995 and ending with taxable years ending on
24    or before December 31, 2004, personal property that is
25    donated for disaster relief to be used in a State or
26    federally declared disaster area in Illinois or bordering

 

 

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

 

 

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

 

 

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1    instruction or (ii) for which the fundraising entity
2    purchases the personal property sold at the events from
3    another individual or entity that sold the property for
4    the purpose of resale by the fundraising entity and that
5    profits from the sale to the fundraising entity. This
6    paragraph is exempt from the provisions of Section 2-70.
7        (35) Beginning January 1, 2000 and through December
8    31, 2001, new or used automatic vending machines that
9    prepare and serve hot food and beverages, including
10    coffee, soup, and other items, and replacement parts for
11    these machines. Beginning January 1, 2002 and through June
12    30, 2003, machines and parts for machines used in
13    commercial, coin-operated amusement and vending business
14    if a use or occupation tax is paid on the gross receipts
15    derived from the use of the commercial, coin-operated
16    amusement and vending machines. This paragraph is exempt
17    from the provisions of Section 2-70.
18        (35-5) Beginning August 23, 2001 and through June 30,
19    2016, food for human consumption that is to be consumed
20    off the premises where it is sold (other than alcoholic
21    beverages, soft drinks, and food that has been prepared
22    for immediate consumption) and prescription and
23    nonprescription medicines, drugs, medical appliances, and
24    insulin, urine testing materials, syringes, and needles
25    used by diabetics, for human use, when purchased for use
26    by a person receiving medical assistance under Article V

 

 

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1    of the Illinois Public Aid Code who resides in a licensed
2    long-term care facility, as defined in the Nursing Home
3    Care Act, or a licensed facility as defined in the ID/DD
4    Community Care Act, the MC/DD Act, or the Specialized
5    Mental Health Rehabilitation Act of 2013.
6        (36) Beginning August 2, 2001, computers and
7    communications equipment utilized for any hospital purpose
8    and equipment used in the diagnosis, analysis, or
9    treatment of hospital patients sold to a lessor who leases
10    the equipment, under a lease of one year or longer
11    executed or in effect at the time of the purchase, to a
12    hospital that has been issued an active tax exemption
13    identification number by the Department under Section 1g
14    of this Act. This paragraph is exempt from the provisions
15    of Section 2-70.
16        (37) Beginning August 2, 2001, personal property sold
17    to a lessor who leases the property, under a lease of one
18    year or longer executed or in effect at the time of the
19    purchase, to a governmental body that has been issued an
20    active tax exemption identification number by the
21    Department under Section 1g of this Act. This paragraph is
22    exempt from the provisions of Section 2-70.
23        (38) Beginning on January 1, 2002 and through June 30,
24    2016, tangible personal property purchased from an
25    Illinois retailer by a taxpayer engaged in centralized
26    purchasing activities in Illinois who will, upon receipt

 

 

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

 

 

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1    Protection Act. This paragraph is exempt from the
2    provisions of Section 2-70.
3        (40) Beginning January 1, 2010 and continuing through
4    December 31, 2029, materials, parts, equipment,
5    components, and furnishings incorporated into or upon an
6    aircraft as part of the modification, refurbishment,
7    completion, replacement, repair, or maintenance of the
8    aircraft. This exemption includes consumable supplies used
9    in the modification, refurbishment, completion,
10    replacement, repair, and maintenance of aircraft. However,
11    until January 1, 2024, this exemption excludes any
12    materials, parts, equipment, components, and consumable
13    supplies used in the modification, replacement, repair,
14    and maintenance of aircraft engines or power plants,
15    whether such engines or power plants are installed or
16    uninstalled upon any such aircraft. "Consumable supplies"
17    include, but are not limited to, adhesive, tape,
18    sandpaper, general purpose lubricants, cleaning solution,
19    latex gloves, and protective films.
20        Beginning January 1, 2010 and continuing through
21    December 31, 2023, this exemption applies only to the sale
22    of qualifying tangible personal property to persons who
23    modify, refurbish, complete, replace, or maintain an
24    aircraft and who (i) hold an Air Agency Certificate and
25    are empowered to operate an approved repair station by the
26    Federal Aviation Administration, (ii) have a Class IV

 

 

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

 

 

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1    and prior to February 5, 2020 (the effective date of
2    Public Act 101-629).
3        (41) Tangible personal property sold to a
4    public-facilities corporation, as described in Section
5    11-65-10 of the Illinois Municipal Code, for purposes of
6    constructing or furnishing a municipal convention hall,
7    but only if the legal title to the municipal convention
8    hall is transferred to the municipality without any
9    further consideration by or on behalf of the municipality
10    at the time of the completion of the municipal convention
11    hall or upon the retirement or redemption of any bonds or
12    other debt instruments issued by the public-facilities
13    corporation in connection with the development of the
14    municipal convention hall. This exemption includes
15    existing public-facilities corporations as provided in
16    Section 11-65-25 of the Illinois Municipal Code. This
17    paragraph is exempt from the provisions of Section 2-70.
18        (42) Beginning January 1, 2017 and through December
19    31, 2026, menstrual pads, tampons, and menstrual cups.
20        (43) Merchandise that is subject to the Rental
21    Purchase Agreement Occupation and Use Tax. The purchaser
22    must certify that the item is purchased to be rented
23    subject to a rental-purchase rental purchase agreement, as
24    defined in the Rental-Purchase Rental Purchase Agreement
25    Act, and provide proof of registration under the Rental
26    Purchase Agreement Occupation and Use Tax Act. This

 

 

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1    paragraph is exempt from the provisions of Section 2-70.
2        (44) Qualified tangible personal property used in the
3    construction or operation of a data center that has been
4    granted a certificate of exemption by the Department of
5    Commerce and Economic Opportunity, whether that tangible
6    personal property is purchased by the owner, operator, or
7    tenant of the data center or by a contractor or
8    subcontractor of the owner, operator, or tenant. Data
9    centers that would have qualified for a certificate of
10    exemption prior to January 1, 2020 had Public Act 101-31
11    been in effect, may apply for and obtain an exemption for
12    subsequent purchases of computer equipment or enabling
13    software purchased or leased to upgrade, supplement, or
14    replace computer equipment or enabling software purchased
15    or leased in the original investment that would have
16    qualified.
17        The Department of Commerce and Economic Opportunity
18    shall grant a certificate of exemption under this item
19    (44) to qualified data centers as defined by Section
20    605-1025 of the Department of Commerce and Economic
21    Opportunity Law of the Civil Administrative Code of
22    Illinois.
23        For the purposes of this item (44):
24            "Data center" means a building or a series of
25        buildings rehabilitated or constructed to house
26        working servers in one physical location or multiple

 

 

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

 

 

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

 

 

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

 

 

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1    ointments, and other similar products that relieve
2    breastfeeding-related symptoms or conditions of the
3    breasts or nipples, unless sold as part of a breast pump
4    kit that is pre-packaged by the breast pump manufacturer
5    or distributor.
6        "Breast pump kit" means a kit that: (1) contains no
7    more than a breast pump, breast pump collection and
8    storage supplies, a rechargeable battery for operating the
9    breast pump, a breastmilk cooler, bottle stands, ice
10    packs, and a breast pump carrying case; and (2) is
11    pre-packaged as a breast pump kit by the breast pump
12    manufacturer or distributor.
13        (47) Tangible personal property sold by or on behalf
14    of the State Treasurer pursuant to the Revised Uniform
15    Unclaimed Property Act. This item (47) is exempt from the
16    provisions of Section 2-70.
17        (48) Beginning on January 1, 2024, tangible personal
18    property purchased by an active duty member of the armed
19    forces of the United States who presents valid military
20    identification and purchases the property using a form of
21    payment where the federal government is the payor. The
22    member of the armed forces must complete, at the point of
23    sale, a form prescribed by the Department of Revenue
24    documenting that the transaction is eligible for the
25    exemption under this paragraph. Retailers must keep the
26    form as documentation of the exemption in their records

 

 

SB3476 Enrolled- 179 -LRB103 34190 HLH 64013 b

1    for a period of not less than 6 years. "Armed forces of the
2    United States" means the United States Army, Navy, Air
3    Force, Marine Corps, or Coast Guard. This paragraph is
4    exempt from the provisions of Section 2-70.
5        (49) Beginning July 1, 2024, home-delivered meals
6    provided to Medicare or Medicaid recipients when payment
7    is made by an intermediary, such as a Medicare
8    Administrative Contractor, a Managed Care Organization, or
9    a Medicare Advantage Organization, pursuant to a
10    government contract. This paragraph (49) is exempt from
11    the provisions of Section 2-70.
12(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
13102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
14Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
155-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
165-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
176-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
189-26-23.)
 
19    Section 95. No acceleration or delay. Where this Act makes
20changes in a statute that is represented in this Act by text
21that is not yet or no longer in effect (for example, a Section
22represented by multiple versions), the use of that text does
23not accelerate or delay the taking effect of (i) the changes
24made by this Act or (ii) provisions derived from any other
25Public Act.
 

 

 

SB3476 Enrolled- 180 -LRB103 34190 HLH 64013 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.