Rep. Michael J. Zalewski

Filed: 3/26/2014

 

 


 

 


 
09800HB3883ham001LRB098 15451 HLH 57281 a

1
AMENDMENT TO HOUSE BILL 3883

2    AMENDMENT NO. ______. Amend House Bill 3883 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts or
4cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after the effective date
14of this amendatory Act of the 92nd General Assembly, however,
15an entity otherwise eligible for this exemption shall not make
16tax-free purchases unless it has an active identification
17number issued by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active exemption
5identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon a
18graphic arts product.
19    (7) Farm chemicals.
20    (8) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (9) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

 

 

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

 

 

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

 

 

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

 

 

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1offhighway hauling, processing, maintenance, and reclamation
2equipment, including replacement parts and equipment, and
3including equipment purchased for lease, but excluding motor
4vehicles required to be registered under the Illinois Vehicle
5Code. The changes made to this Section by Public Act 97-767
6apply on and after July 1, 2003, but no claim for credit or
7refund is allowed on or after August 16, 2013 (the effective
8date of Public Act 98-456) this amendatory Act of the 98th
9General Assembly for such taxes paid during the period
10beginning July 1, 2003 and ending on August 16, 2013 (the
11effective date of Public Act 98-456) this amendatory Act of the
1298th General Assembly.
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 for
3a particular purchaser. The exemption provided by this
4paragraph (18) does not include machinery and equipment used in
5(i) the generation of electricity for wholesale or retail sale;
6(ii) the generation or treatment of natural or artificial gas
7for wholesale or retail sale that is delivered to customers
8through pipes, pipelines, or mains; or (iii) the treatment of
9water for wholesale or retail sale that is delivered to
10customers through pipes, pipelines, or mains. The provisions of
11Public Act 98-583 this amendatory Act of the 98th General
12Assembly are declaratory of existing law as to the meaning and
13scope of this exemption.
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 provisions

 

 

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1of Section 3-90, and the exemption provided for under this item
2(21) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 for such taxes paid during the period beginning May 30,
52000 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 the
14Retailers' Occupation Tax Act. If the equipment is leased in a
15manner that does not qualify for this exemption or is used in
16any other non-exempt 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 non-qualifying 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 have
25a legal right to claim a refund of that amount from the lessor.
26If, however, that amount is not refunded to the lessee for any

 

 

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

 

 

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1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (25) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-90.
23    (27) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the Department

 

 

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-90.
3    (29) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and other
6items, and replacement parts for these machines. Beginning
7January 1, 2002 and through June 30, 2003, machines and parts
8for machines used in commercial, coin-operated amusement and
9vending business if a use or occupation tax is paid on the
10gross receipts derived from the use of the commercial,
11coin-operated amusement and vending machines. This paragraph
12is exempt from the provisions of Section 3-90.
13    (30) Beginning January 1, 2001 and through June 30, 2016,
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages, soft
16drinks, and food that has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances, and insulin, urine testing
19materials, syringes, and needles used by diabetics, for human
20use, when purchased for use by a person receiving medical
21assistance under Article V of the Illinois Public Aid Code who
22resides in a licensed long-term care facility, as defined in
23the Nursing Home Care Act, or in a licensed facility as defined
24in the ID/DD Community Care Act or the Specialized Mental
25Health Rehabilitation Act of 2013.
26    (31) Beginning on the effective date of this amendatory Act

 

 

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1of the 92nd General Assembly, computers and communications
2equipment utilized for any hospital purpose and equipment used
3in the diagnosis, analysis, or treatment of hospital patients
4purchased by a lessor who leases the equipment, under a lease
5of one year or longer executed or in effect at the time the
6lessor would otherwise be subject to the tax imposed by this
7Act, to a hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of the
9Retailers' Occupation Tax Act. If the equipment is leased in a
10manner that does not qualify for this exemption or is 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 have
20a legal right to claim a refund of that amount from the lessor.
21If, however, that amount is not refunded to the lessee for any
22reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-90.
25    (32) Beginning on the effective date of this amendatory Act
26of the 92nd General Assembly, personal property purchased by a

 

 

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1lessor who leases the property, under a lease of one year or
2longer executed or in effect at the time the lessor would
3otherwise be subject to the tax imposed by this Act, to a
4governmental body that has been issued an active sales tax
5exemption identification number by the Department under
6Section 1g of the Retailers' Occupation Tax Act. If the
7property is leased in a manner that does not qualify for this
8exemption or used in any other nonexempt manner, the lessor
9shall be liable for the tax imposed under this Act or the
10Service Use Tax Act, as the case may be, based on the fair
11market value of the property at the time the nonqualifying use
12occurs. No lessor shall collect or attempt to collect an amount
13(however designated) that purports to reimburse that lessor for
14the tax imposed by this Act or the Service Use Tax Act, as the
15case may be, if the tax has not been paid by the lessor. If a
16lessor improperly collects any such amount from the lessee, the
17lessee shall have a legal right to claim a refund of that
18amount from the lessor. If, however, that amount is not
19refunded to the lessee for any reason, the lessor is liable to
20pay that amount to the Department. This paragraph is exempt
21from the provisions of Section 3-90.
22    (33) On and after July 1, 2003 and through June 30, 2004,
23the use in this State of motor vehicles of the second division
24with a gross vehicle weight in excess of 8,000 pounds and that
25are subject to the commercial distribution fee imposed under
26Section 3-815.1 of the Illinois Vehicle Code. Beginning on July

 

 

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11, 2004 and through June 30, 2005, the use in this State of
2motor vehicles of the second division: (i) with a gross vehicle
3weight rating in excess of 8,000 pounds; (ii) that are subject
4to the commercial distribution fee imposed under Section
53-815.1 of the Illinois Vehicle Code; and (iii) that are
6primarily used for commercial purposes. Through June 30, 2005,
7this exemption applies to repair and replacement parts added
8after the initial purchase of such a motor vehicle if that
9motor vehicle is used in a manner that would qualify for the
10rolling stock exemption otherwise provided for in this Act. For
11purposes of this paragraph, the term "used for commercial
12purposes" means the transportation of persons or property in
13furtherance of any commercial or industrial enterprise,
14whether for-hire or not.
15    (34) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued under
20Title IV of the Environmental Protection Act. This paragraph is
21exempt from the provisions of Section 3-90.
22    (35) Beginning January 1, 2010, materials, parts,
23equipment, components, and furnishings incorporated into or
24upon an aircraft as part of the modification, refurbishment,
25completion, replacement, repair, or maintenance of the
26aircraft. This exemption includes consumable supplies used in

 

 

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1the modification, refurbishment, completion, replacement,
2repair, and maintenance of aircraft, but excludes any
3materials, parts, equipment, components, and consumable
4supplies used in the modification, replacement, repair, and
5maintenance of aircraft engines or power plants, whether such
6engines or power plants are installed or uninstalled upon any
7such aircraft. "Consumable supplies" include, but are not
8limited to, adhesive, tape, sandpaper, general purpose
9lubricants, cleaning solution, latex gloves, and protective
10films. This exemption applies only to the use of qualifying
11tangible personal property by persons who modify, refurbish,
12complete, repair, replace, or maintain aircraft and who (i)
13hold an Air Agency Certificate and are empowered to operate an
14approved repair station by the Federal Aviation
15Administration, (ii) have a Class IV Rating, and (iii) conduct
16operations in accordance with Part 145 of the Federal Aviation
17Regulations. The exemption does not include aircraft operated
18by a commercial air carrier providing scheduled passenger air
19service pursuant to authority issued under Part 121 or Part 129
20of the Federal Aviation Regulations. The changes made to this
21paragraph (35) by Public Act 98-534 this amendatory Act of the
2298th General Assembly are declarative of existing law.
23    (36) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt instruments
6issued by the public-facilities corporation in connection with
7the development of the municipal convention hall. This
8exemption includes existing public-facilities corporations as
9provided in Section 11-65-25 of the Illinois Municipal Code.
10This paragraph is exempt from the provisions of Section 3-90.
11    (37) Beginning on July 1, 2014, qualified tangible personal
12property used in the construction or operation of a data center
13that has been granted a Certificate of Exemption by the
14Department of Commerce and Economic Opportunity, whether that
15tangible personal property is purchased by the owner of the
16data center or by a contractor or subcontractor of the owner.
17    The Department of Commerce and Economic Opportunity shall
18grant a Certificate of Exemption under this item (37) if the
19owner or operator of the data center makes a capital investment
20of at least $200,000,000 at the data center within a 5-year
21period from the date the certificate is issued.
22    For the purposes of this item (37):
23        "Data center" means a building or a series of buildings
24    rehabilitated or constructed to house a group of networked
25    server computers in one physical location or several sites
26    within a single county in order to centralize the storage,

 

 

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1    management, and dissemination of data and information.
2        "Qualified tangible personal property" means
3    electrical systems and equipment; mechanical systems and
4    equipment; emergency generators; hardware or distributed
5    computers or servers; data storage devices; network
6    connectivity equipment; racks; cabinets; raised floor
7    systems; peripheral components or systems; software;
8    mechanical, electrical, or plumbing systems necessary to
9    operate other items of tangible personal property,
10    including fixtures; and component parts of any of the
11    foregoing, including installation, maintenance, repair,
12    refurbishment, and replacement of qualified tangible
13    personal property.
14    This item (37) is exempt from the provisions of Section
153-90.
16(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
17eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,
18eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
1998-534, eff. 8-23-13; 98-574, eff. 1-1-14; 98-583, eff. 1-1-14;
20revised 9-9-13.)
 
21    Section 10. The Service Use Tax Act is amended by changing
22Section 3-5 as follows:
 
23    (35 ILCS 110/3-5)
24    Sec. 3-5. Exemptions. Use of the following tangible

 

 

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1personal property is exempt from the tax imposed by this Act:
2    (1) Personal property purchased from a corporation,
3society, association, foundation, institution, or
4organization, other than a limited liability company, that is
5organized and operated as a not-for-profit service enterprise
6for the benefit of persons 65 years of age or older if the
7personal property was not purchased by the enterprise for the
8purpose of resale by the enterprise.
9    (2) Personal property purchased by a non-profit Illinois
10county fair association for use in conducting, operating, or
11promoting the county fair.
12    (3) Personal property purchased by a not-for-profit arts or
13cultural organization that establishes, by proof required by
14the Department by rule, that it has received an exemption under
15Section 501(c)(3) of the Internal Revenue Code and that is
16organized 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 the effective date
23of this amendatory Act of the 92nd General Assembly, however,
24an entity otherwise eligible for this exemption shall not make
25tax-free purchases unless it has an active identification
26number issued by 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 and
8used, 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.
14    (6) Personal property purchased from a teacher-sponsored
15student organization affiliated with an elementary or
16secondary school located in Illinois.
17    (7) Farm machinery and equipment, both new and used,
18including that manufactured on special order, certified by the
19purchaser to be used primarily for production agriculture or
20State or federal agricultural programs, including individual
21replacement parts for the machinery and equipment, including
22machinery and equipment purchased for lease, and including
23implements of husbandry defined in Section 1-130 of the
24Illinois Vehicle Code, farm machinery and agricultural
25chemical and fertilizer spreaders, and nurse wagons required to
26be registered under Section 3-809 of the Illinois Vehicle Code,

 

 

09800HB3883ham001- 22 -LRB098 15451 HLH 57281 a

1but excluding other motor vehicles required to be registered
2under the Illinois Vehicle Code. Horticultural polyhouses or
3hoop houses used for propagating, growing, or overwintering
4plants shall be considered farm machinery and equipment under
5this item (7). Agricultural chemical tender tanks and dry boxes
6shall include units sold separately from a motor vehicle
7required to be licensed and units sold mounted on a motor
8vehicle required to be licensed if the selling price of the
9tender is separately stated.
10    Farm machinery and equipment shall include precision
11farming equipment that is installed or purchased to be
12installed on farm machinery and equipment including, but not
13limited to, tractors, harvesters, sprayers, planters, seeders,
14or spreaders. Precision farming equipment includes, but is not
15limited to, soil testing sensors, computers, monitors,
16software, global positioning and mapping systems, and other
17such equipment.
18    Farm machinery and equipment also includes computers,
19sensors, software, and related equipment used primarily in the
20computer-assisted operation of production agriculture
21facilities, equipment, and activities such as, but not limited
22to, the collection, monitoring, and correlation of animal and
23crop data for the purpose of formulating animal diets and
24agricultural chemicals. This item (7) is exempt from the
25provisions of Section 3-75.
26    (8) Until June 30, 2013, fuel and petroleum products sold

 

 

09800HB3883ham001- 23 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 24 -LRB098 15451 HLH 57281 a

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

 

 

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198th General Assembly.
2    (13) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (14) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (14) is exempt from the provisions
10of Section 3-75, and the exemption provided for under this item
11(14) applies for all periods beginning May 30, 1995, but no
12claim for credit or refund is allowed on or after the effective
13date of this amendatory Act of the 95th General Assembly for
14such taxes paid during the period beginning May 30, 2000 and
15ending on the effective date of this amendatory Act of the 95th
16General Assembly.
17    (15) Computers and communications equipment utilized for
18any hospital purpose and equipment used in the diagnosis,
19analysis, or treatment of hospital patients purchased by a
20lessor who leases the equipment, under a lease of one year or
21longer executed or in effect at the time the lessor would
22otherwise be subject to the tax imposed by this Act, to a
23hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. If the equipment is leased in a
26manner that does not qualify for this exemption or is used in

 

 

09800HB3883ham001- 26 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 27 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 28 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 29 -LRB098 15451 HLH 57281 a

1benefit of a public or private elementary or secondary school,
2a group of those schools, or one or more school districts if
3the events are sponsored by an entity recognized by the school
4district that consists primarily of volunteers and includes
5parents and teachers of the school children. This paragraph
6does not apply to fundraising events (i) for the benefit of
7private home instruction or (ii) for which the fundraising
8entity purchases the personal property sold at the events from
9another individual or entity that sold the property for the
10purpose of resale by the fundraising entity and that profits
11from the sale to the fundraising entity. This paragraph is
12exempt from the provisions of Section 3-75.
13    (22) Beginning January 1, 2000 and through December 31,
142001, new or used automatic vending machines that prepare and
15serve hot food and beverages, including coffee, soup, and other
16items, and replacement parts for these machines. Beginning
17January 1, 2002 and through June 30, 2003, machines and parts
18for machines used in commercial, coin-operated amusement and
19vending business if a use or occupation tax is paid on the
20gross receipts derived from the use of the commercial,
21coin-operated amusement and vending machines. This paragraph
22is exempt from the provisions of Section 3-75.
23    (23) Beginning August 23, 2001 and through June 30, 2016,
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages, soft
26drinks, and food that has been prepared for immediate

 

 

09800HB3883ham001- 30 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 31 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 32 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 33 -LRB098 15451 HLH 57281 a

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.
7The exemption does not include aircraft operated by a
8commercial air carrier providing scheduled passenger air
9service pursuant to authority issued under Part 121 or Part 129
10of the Federal Aviation Regulations. The changes made to this
11paragraph (27) by Public Act 98-534 this amendatory Act of the
1298th General Assembly are declarative of existing law.
13    (28) Tangible personal property purchased by a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt instruments
22issued by the public-facilities corporation in connection with
23the development of the municipal convention hall. This
24exemption includes existing public-facilities corporations as
25provided in Section 11-65-25 of the Illinois Municipal Code.
26This paragraph is exempt from the provisions of Section 3-75.

 

 

09800HB3883ham001- 34 -LRB098 15451 HLH 57281 a

1    (29) Beginning on July 1, 2014, qualified tangible personal
2property used in the construction or operation of a data center
3that has been granted a Certificate of Exemption by the
4Department of Commerce and Economic Opportunity, whether that
5tangible personal property is purchased by the owner of the
6data center or by a contractor or subcontractor of the owner.
7    The Department of Commerce and Economic Opportunity shall
8grant a Certificate of Exemption under this item (29) if the
9owner or operator of the data center makes a capital investment
10of at least $200,000,000 at the data center within a 5-year
11period from the date the certificate is issued.
12    For the purposes of this item (29):
13        "Data center" means a building or a series of buildings
14    rehabilitated or constructed to house a group of networked
15    server computers in one physical location or several sites
16    within a single county in order to centralize the storage,
17    management, and dissemination of data and information.
18        "Qualified tangible personal property" means
19    electrical systems and equipment; mechanical systems and
20    equipment; emergency generators; hardware or distributed
21    computers or servers; data storage devices; network
22    connectivity equipment; racks; cabinets; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems necessary to
25    operate other items of tangible personal property,
26    including fixtures; and component parts of any of the

 

 

09800HB3883ham001- 35 -LRB098 15451 HLH 57281 a

1    foregoing, including installation, maintenance, repair,
2    refurbishment, and replacement of qualified tangible
3    personal property.
4    This item (29) is exempt from the provisions of Section
53-75.
6(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
7eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,
8eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
998-534, eff. 8-23-13; revised 9-9-13.)
 
10    Section 15. The Service Occupation Tax Act is amended by
11changing Section 3-5 as follows:
 
12    (35 ILCS 115/3-5)
13    Sec. 3-5. Exemptions. The following tangible personal
14property is exempt from the tax imposed by this Act:
15    (1) Personal property sold by a corporation, society,
16association, foundation, institution, or organization, other
17than a limited liability company, that is organized and
18operated as a not-for-profit service enterprise for the benefit
19of persons 65 years of age or older if the personal property
20was not purchased by the enterprise for the purpose of resale
21by the enterprise.
22    (2) Personal property purchased by a not-for-profit
23Illinois county fair association for use in conducting,
24operating, or promoting the county fair.

 

 

09800HB3883ham001- 36 -LRB098 15451 HLH 57281 a

1    (3) Personal property purchased by any not-for-profit arts
2or cultural organization that establishes, by proof required by
3the Department by rule, that it has received an exemption under
4Section 501(c)(3) of the Internal Revenue Code and that is
5organized and operated primarily for the presentation or
6support of arts or cultural programming, activities, or
7services. These organizations include, but are not limited to,
8music and dramatic arts organizations such as symphony
9orchestras and theatrical groups, arts and cultural service
10organizations, local arts councils, visual arts organizations,
11and media arts organizations. On and after the effective date
12of this amendatory Act of the 92nd General Assembly, however,
13an entity otherwise eligible for this exemption shall not make
14tax-free purchases unless it has an active identification
15number issued by the Department.
16    (4) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (5) Until July 1, 2003 and beginning again on September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new and
23used, and including that manufactured on special order or
24purchased for lease, certified by the purchaser to be used
25primarily for graphic arts production. Equipment includes
26chemicals or chemicals acting as catalysts but only if the

 

 

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

 

 

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1installed on farm machinery and equipment including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals. This item (7) is exempt from the
14provisions of Section 3-55.
15    (8) Until June 30, 2013, fuel and petroleum products sold
16to or used by an air common carrier, certified by the carrier
17to be used for consumption, shipment, or storage in the conduct
18of its business as an air common carrier, for a flight destined
19for or returning from a location or locations outside the
20United States without regard to previous or subsequent domestic
21stopovers.
22    Beginning July 1, 2013, fuel and petroleum products sold to
23or used by an air carrier, certified by the carrier to be used
24for consumption, shipment, or storage in the conduct of its
25business as an air common carrier, for a flight that (i) is
26engaged in foreign trade or is engaged in trade between the

 

 

09800HB3883ham001- 39 -LRB098 15451 HLH 57281 a

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

 

 

09800HB3883ham001- 40 -LRB098 15451 HLH 57281 a

1photoprocessing machinery and equipment purchased for lease.
2    (12) Coal and aggregate exploration, mining, off-highway
3offhighway hauling, processing, maintenance, and reclamation
4equipment, including replacement parts and equipment, and
5including equipment purchased for lease, but excluding motor
6vehicles required to be registered under the Illinois Vehicle
7Code. The changes made to this Section by Public Act 97-767
8apply on and after July 1, 2003, but no claim for credit or
9refund is allowed on or after August 16, 2013 (the effective
10date of Public Act 98-456) this amendatory Act of the 98th
11General Assembly for such taxes paid during the period
12beginning July 1, 2003 and ending on August 16, 2013 (the
13effective date of Public Act 98-456) this amendatory Act of the
1498th General Assembly.
15    (13) Beginning January 1, 1992 and through June 30, 2016,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks and food that has been prepared for immediate
19consumption) and prescription and non-prescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the ID/DD Community Care Act or the Specialized Mental

 

 

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1Health Rehabilitation Act of 2013.
2    (14) Semen used for artificial insemination of livestock
3for direct agricultural production.
4    (15) Horses, or interests in horses, registered with and
5meeting the requirements of any of the Arabian Horse Club
6Registry of America, Appaloosa Horse Club, American Quarter
7Horse Association, United States Trotting Association, or
8Jockey Club, as appropriate, used for purposes of breeding or
9racing for prizes. This item (15) is exempt from the provisions
10of Section 3-55, and the exemption provided for under this item
11(15) applies for all periods beginning May 30, 1995, but no
12claim for credit or refund is allowed on or after January 1,
132008 (the effective date of Public Act 95-88) for such taxes
14paid during the period beginning May 30, 2000 and ending on
15January 1, 2008 (the effective date of Public Act 95-88).
16    (16) Computers and communications equipment utilized for
17any hospital purpose and equipment used in the diagnosis,
18analysis, or treatment of hospital patients sold to a lessor
19who leases the equipment, under a lease of one year or longer
20executed or in effect at the time of the purchase, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of the
23Retailers' Occupation Tax Act.
24    (17) Personal property sold to a lessor who leases the
25property, under a lease of one year or longer executed or in
26effect at the time of the purchase, to a governmental body that

 

 

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

 

 

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1"game breeding and hunting preserve area" as that term is used
2in the Wildlife Code. This paragraph is exempt from the
3provisions of Section 3-55.
4    (21) 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 Department
8to be organized and operated exclusively for educational
9purposes. For purposes of this exemption, "a corporation,
10limited liability company, society, association, foundation,
11or institution organized and operated exclusively for
12educational purposes" means all tax-supported public schools,
13private schools that offer systematic instruction in useful
14branches of learning by methods common to public schools and
15that compare favorably in their scope and intensity with the
16course of study presented in tax-supported schools, and
17vocational or technical schools or institutes organized and
18operated exclusively to provide a course of study of not less
19than 6 weeks duration and designed to prepare individuals to
20follow a trade or to pursue a manual, technical, mechanical,
21industrial, business, or commercial occupation.
22    (22) Beginning January 1, 2000, personal property,
23including food, purchased through fundraising events for the
24benefit of a public or private elementary or secondary school,
25a group of those schools, or one or more school districts if
26the events are sponsored by an entity recognized by the school

 

 

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1district that consists primarily of volunteers and includes
2parents and teachers of the school children. This paragraph
3does not apply to fundraising events (i) for the benefit of
4private home instruction or (ii) for which the fundraising
5entity purchases the personal property sold at the events from
6another individual or entity that sold the property for the
7purpose of resale by the fundraising entity and that profits
8from the sale to the fundraising entity. This paragraph is
9exempt from the provisions of Section 3-55.
10    (23) Beginning January 1, 2000 and through December 31,
112001, new or used automatic vending machines that prepare and
12serve hot food and beverages, including coffee, soup, and other
13items, and replacement parts for these machines. Beginning
14January 1, 2002 and through June 30, 2003, machines and parts
15for machines used in commercial, coin-operated amusement and
16vending business if a use or occupation tax is paid on the
17gross receipts derived from the use of the commercial,
18coin-operated amusement and vending machines. This paragraph
19is exempt from the provisions of Section 3-55.
20    (24) Beginning on the effective date of this amendatory Act
21of the 92nd General Assembly, computers and communications
22equipment utilized for any hospital purpose and equipment used
23in the diagnosis, analysis, or treatment of hospital patients
24sold to a lessor who leases the equipment, under a lease of one
25year or longer executed or in effect at the time of the
26purchase, to a hospital that has been issued an active tax

 

 

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1exemption identification number by the Department under
2Section 1g of the Retailers' Occupation Tax Act. This paragraph
3is exempt from the provisions of Section 3-55.
4    (25) Beginning on the effective date of this amendatory Act
5of the 92nd General Assembly, personal property sold to a
6lessor who leases the property, under a lease of one year or
7longer executed or in effect at the time of the purchase, to a
8governmental body that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act. This paragraph is exempt from
11the provisions of Section 3-55.
12    (26) Beginning on January 1, 2002 and through June 30,
132016, tangible personal property purchased from an Illinois
14retailer by a taxpayer engaged in centralized purchasing
15activities in Illinois who will, upon receipt of the property
16in Illinois, temporarily store the property in Illinois (i) for
17the purpose of subsequently transporting it outside this State
18for use or consumption thereafter solely outside this State or
19(ii) for the purpose of being processed, fabricated, or
20manufactured into, attached to, or incorporated into other
21tangible personal property to be transported outside this State
22and thereafter used or consumed solely outside this State. The
23Director of Revenue shall, pursuant to rules adopted in
24accordance with the Illinois Administrative Procedure Act,
25issue a permit to any taxpayer in good standing with the
26Department who is eligible for the exemption under this

 

 

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1paragraph (26). The permit issued under this paragraph (26)
2shall authorize the holder, to the extent and in the manner
3specified in the rules adopted under this Act, to purchase
4tangible personal property from a retailer exempt from the
5taxes imposed by this Act. Taxpayers shall maintain all
6necessary books and records to substantiate the use and
7consumption of all such tangible personal property outside of
8the State of Illinois.
9    (27) Beginning January 1, 2008, tangible personal property
10used in the construction or maintenance of a community water
11supply, as defined under Section 3.145 of the Environmental
12Protection Act, that is operated by a not-for-profit
13corporation that holds a valid water supply permit issued under
14Title IV of the Environmental Protection Act. This paragraph is
15exempt from the provisions of Section 3-55.
16    (28) Tangible personal property sold to 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 instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

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1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-55.
4    (29) Beginning January 1, 2010, materials, parts,
5equipment, components, and furnishings incorporated into or
6upon an aircraft as part of the modification, refurbishment,
7completion, replacement, repair, or maintenance of the
8aircraft. This exemption includes consumable supplies used in
9the modification, refurbishment, completion, replacement,
10repair, and maintenance of aircraft, but excludes any
11materials, parts, equipment, components, and consumable
12supplies used in the modification, replacement, repair, and
13maintenance of aircraft engines or power plants, whether such
14engines or power plants are installed or uninstalled upon any
15such aircraft. "Consumable supplies" include, but are not
16limited to, adhesive, tape, sandpaper, general purpose
17lubricants, cleaning solution, latex gloves, and protective
18films. 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 129
3of the Federal Aviation Regulations. The changes made to this
4paragraph (29) by Public Act 98-534 this amendatory Act of the
598th General Assembly are declarative of existing law.
6    (30) Beginning on July 1, 2014, qualified tangible personal
7property used in the construction or operation of a data center
8that has been granted a Certificate of Exemption by the
9Department of Commerce and Economic Opportunity, whether that
10tangible personal property is purchased by the owner of the
11data center or by a contractor or subcontractor of the owner.
12    The Department of Commerce and Economic Opportunity shall
13grant a Certificate of Exemption under this item (30) if the
14owner or operator of the data center makes a capital investment
15of at least $200,000,000 at the data center within a 5-year
16period from the date the certificate is issued.
17    For the purposes of this item (30):
18        "Data center" means a building or a series of buildings
19    rehabilitated or constructed to house a group of networked
20    server computers in one physical location or several sites
21    within a single county in order to centralize the storage,
22    management, and dissemination of data and information.
23        "Qualified tangible personal property" means
24    electrical systems and equipment; mechanical systems and
25    equipment; emergency generators; hardware or distributed
26    computers or servers; data storage devices; network

 

 

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1    connectivity equipment; racks; cabinets; raised floor
2    systems; peripheral components or systems; software;
3    mechanical, electrical, or plumbing systems necessary to
4    operate other items of tangible personal property,
5    including fixtures; and component parts of any of the
6    foregoing, including installation, maintenance, repair,
7    refurbishment, and replacement of qualified tangible
8    personal property.
9    This item (30) is exempt from the provisions of Section
103-55.
11(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
12eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
13eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1498-456, eff. 8-16-13; 98-534, eff. 8-23-13; revised 9-9-13.)
 
15    Section 20. The Retailers' Occupation Tax Act is amended by
16changing Section 2-5 as follows:
 
17    (35 ILCS 120/2-5)
18    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
19sale of the following tangible personal property are exempt
20from the tax imposed by this Act:
21    (1) Farm chemicals.
22    (2) 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

 

 

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

 

 

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1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (2) is exempt from the
6provisions of Section 2-70.
7    (3) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13    (4) Until July 1, 2003 and beginning again September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product.
22    (5) A motor vehicle that is used for automobile renting, as
23defined in the Automobile Renting Occupation and Use Tax Act.
24This paragraph is exempt from the provisions of Section 2-70.
25    (6) Personal property sold by a teacher-sponsored student
26organization affiliated with an elementary or secondary school

 

 

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

 

 

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1of persons 65 years of age or older if the personal property
2was not purchased by the enterprise for the purpose of resale
3by the enterprise.
4    (11) Personal property sold to a governmental body, to a
5corporation, society, association, foundation, or institution
6organized and operated exclusively for charitable, religious,
7or educational purposes, or to a not-for-profit corporation,
8society, association, foundation, institution, or organization
9that has no compensated officers or employees and that is
10organized and operated primarily for the recreation of persons
1155 years of age or older. A limited liability company may
12qualify for the exemption under this paragraph only if the
13limited liability company is organized and operated
14exclusively for educational purposes. On and after July 1,
151987, however, no entity otherwise eligible for this exemption
16shall make tax-free purchases unless it has an active
17identification number issued by the Department.
18    (12) Tangible personal property sold to interstate
19carriers for hire for use as rolling stock moving in interstate
20commerce or to lessors under leases of one year or longer
21executed or in effect at the time of purchase by interstate
22carriers for hire for use as rolling stock moving in interstate
23commerce and equipment operated by a telecommunications
24provider, licensed as a common carrier by the Federal
25Communications Commission, which is permanently installed in
26or affixed to aircraft moving in interstate commerce.

 

 

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1    (12-5) On and after July 1, 2003 and through June 30, 2004,
2motor vehicles of the second division with a gross vehicle
3weight in excess of 8,000 pounds that are subject to the
4commercial distribution fee imposed under Section 3-815.1 of
5the Illinois Vehicle Code. Beginning on July 1, 2004 and
6through June 30, 2005, the use in this State of motor vehicles
7of the second division: (i) with a gross vehicle weight rating
8in excess of 8,000 pounds; (ii) that are subject to the
9commercial distribution fee imposed under Section 3-815.1 of
10the Illinois Vehicle Code; and (iii) that are primarily used
11for commercial purposes. Through June 30, 2005, this exemption
12applies to repair and replacement parts added after the initial
13purchase of such a motor vehicle if that motor vehicle is used
14in a manner that would qualify for the rolling stock exemption
15otherwise provided for in this Act. For purposes of this
16paragraph, "used for commercial purposes" means the
17transportation of persons or property in furtherance of any
18commercial or industrial enterprise whether for-hire or not.
19    (13) Proceeds from sales to owners, lessors, or shippers of
20tangible personal property that is utilized by interstate
21carriers for hire for use as rolling stock moving in interstate
22commerce and equipment operated by a telecommunications
23provider, licensed as a common carrier by the Federal
24Communications Commission, which is permanently installed in
25or affixed to aircraft moving in interstate commerce.
26    (14) Machinery and equipment that will be used by the

 

 

09800HB3883ham001- 55 -LRB098 15451 HLH 57281 a

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

 

 

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1serving, hosting or cleaning up the food or beverage function
2with respect to which the service charge is imposed.
3    (16) Petroleum products sold to a purchaser if the seller
4is prohibited by federal law from charging tax to the
5purchaser.
6    (17) Tangible personal property sold to a common carrier by
7rail or motor that receives the physical possession of the
8property in Illinois and that transports the property, or
9shares with another common carrier in the transportation of the
10property, out of Illinois on a standard uniform bill of lading
11showing the seller of the property as the shipper or consignor
12of the property to a destination outside Illinois, for use
13outside Illinois.
14    (18) 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    (19) Until July 1 2003, oil field exploration, drilling,
19and production equipment, including (i) rigs and parts of rigs,
20rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
21tubular goods, including casing and drill strings, (iii) pumps
22and pump-jack units, (iv) storage tanks and flow lines, (v) any
23individual replacement part for oil field exploration,
24drilling, and production equipment, and (vi) machinery and
25equipment purchased for lease; but excluding motor vehicles
26required to be registered under the Illinois Vehicle Code.

 

 

09800HB3883ham001- 57 -LRB098 15451 HLH 57281 a

1    (20) Photoprocessing machinery and equipment, including
2repair and replacement parts, both new and used, including that
3manufactured on special order, certified by the purchaser to be
4used primarily for photoprocessing, and including
5photoprocessing machinery and equipment purchased for lease.
6    (21) Coal and aggregate exploration, mining, off-highway
7offhighway hauling, processing, maintenance, and reclamation
8equipment, including replacement parts and equipment, and
9including equipment purchased for lease, but excluding motor
10vehicles required to be registered under the Illinois Vehicle
11Code. The changes made to this Section by Public Act 97-767
12apply on and after July 1, 2003, but no claim for credit or
13refund is allowed on or after August 16, 2013 (the effective
14date of Public Act 98-456) this amendatory Act of the 98th
15General Assembly for such taxes paid during the period
16beginning July 1, 2003 and ending on August 16, 2013 (the
17effective date of Public Act 98-456) this amendatory Act of the
1898th General Assembly.
19    (22) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air carrier, certified by the carrier to be
21used for consumption, shipment, or storage in the conduct of
22its business as an air common carrier, for a flight destined
23for or returning from a location or locations outside the
24United States without regard to previous or subsequent domestic
25stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold to

 

 

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

 

 

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

 

 

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

 

 

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1    the address of the primary physical location of the
2    aircraft, and other information that the Department may
3    reasonably require.
4    For purposes of this item (25-7):
5    "Based in this State" means hangared, stored, or otherwise
6used, excluding post-sale customizations as defined in this
7Section, for 10 or more days in each 12-month period
8immediately following the date of the sale of the aircraft.
9    "Registered in this State" means an aircraft registered
10with the Department of Transportation, Aeronautics Division,
11or titled or registered with the Federal Aviation
12Administration to an address located in this State.
13    This paragraph (25-7) is exempt from the provisions of
14Section 2-70.
15    (26) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (27) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (27) is exempt from the provisions
23of Section 2-70, and the exemption provided for under this item
24(27) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 (the effective date of Public Act 95-88) for such taxes

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12    (32) Beginning July 1, 1999, game or game birds sold at a
13"game breeding and hunting preserve area" as that term is used
14in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 2-70.
16    (33) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

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1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (34) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 2-70.
22    (35) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

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

 

 

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1provisions of Section 2-70.
2    (37) Beginning August 2, 2001, personal property sold to a
3lessor who leases the property, under a lease of one year or
4longer executed or in effect at the time of the purchase, to a
5governmental body that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7this Act. This paragraph is exempt from the provisions of
8Section 2-70.
9    (38) Beginning on January 1, 2002 and through June 30,
102016, tangible personal property purchased from an Illinois
11retailer by a taxpayer engaged in centralized purchasing
12activities in Illinois who will, upon receipt of the property
13in Illinois, temporarily store the property in Illinois (i) for
14the purpose of subsequently transporting it outside this State
15for use or consumption thereafter solely outside this State or
16(ii) for the purpose of being processed, fabricated, or
17manufactured into, attached to, or incorporated into other
18tangible personal property to be transported outside this State
19and thereafter used or consumed solely outside this State. The
20Director of Revenue shall, pursuant to rules adopted in
21accordance with the Illinois Administrative Procedure Act,
22issue a permit to any taxpayer in good standing with the
23Department who is eligible for the exemption under this
24paragraph (38). The permit issued under this paragraph (38)
25shall authorize the holder, to the extent and in the manner
26specified in the rules adopted under this Act, to purchase

 

 

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

 

 

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1films. This exemption applies only to the sale of qualifying
2tangible personal property to persons who modify, refurbish,
3complete, replace, or maintain an aircraft and who (i) hold an
4Air Agency Certificate and are empowered to operate an approved
5repair station by the Federal Aviation Administration, (ii)
6have a Class IV Rating, and (iii) conduct operations in
7accordance with Part 145 of the Federal Aviation Regulations.
8The exemption does not include aircraft operated by a
9commercial air carrier providing scheduled passenger air
10service pursuant to authority issued under Part 121 or Part 129
11of the Federal Aviation Regulations. The changes made to this
12paragraph (40) by Public Act 98-534 this amendatory Act of the
1398th General Assembly are declarative of existing law.
14    (41) Tangible personal property sold to a
15public-facilities corporation, as described in Section
1611-65-10 of the Illinois Municipal Code, for purposes of
17constructing or furnishing a municipal convention hall, but
18only if the legal title to the municipal convention hall is
19transferred to the municipality without any further
20consideration by or on behalf of the municipality at the time
21of the completion of the municipal convention hall or upon the
22retirement or redemption of any bonds or other debt instruments
23issued by the public-facilities corporation in connection with
24the development of the municipal convention hall. This
25exemption includes existing public-facilities corporations as
26provided in Section 11-65-25 of the Illinois Municipal Code.

 

 

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1This paragraph is exempt from the provisions of Section 2-70.
2    (42) Beginning on July 1, 2014, qualified tangible personal
3property used in the construction or operation of a data center
4that has been granted a Certificate of Exemption by the
5Department of Commerce and Economic Opportunity, whether that
6tangible personal property is purchased by the owner of the
7data center or by a contractor or subcontractor of the owner.
8    The Department of Commerce and Economic Opportunity shall
9grant a Certificate of Exemption under this item (42) if the
10owner or operator of the data center makes a capital investment
11of at least $200,000,000 at the data center within a 5-year
12period from the date the certificate is issued.
13    For the purposes of this item (42):
14        "Data center" means a building or a series of buildings
15    rehabilitated or constructed to house a group of networked
16    server computers in one physical location or several sites
17    within a single county in order to centralize the storage,
18    management, and dissemination of data and information.
19        "Qualified tangible personal property" means
20    electrical systems and equipment; mechanical systems and
21    equipment; emergency generators; hardware or distributed
22    computers or servers; data storage devices; network
23    connectivity equipment; racks; cabinets; raised floor
24    systems; peripheral components or systems; software;
25    mechanical, electrical, or plumbing systems necessary to
26    operate other items of tangible personal property,

 

 

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1    including fixtures; and component parts of any of the
2    foregoing, including installation, maintenance, repair,
3    refurbishment, and replacement of qualified tangible
4    personal property.
5    This item (42) is exempt from the provisions of Section
62-70.
7(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
8eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
9eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1098-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
111-1-14; 98-583, eff. 1-1-14; revised 9-9-13.)
 
12    Section 25. The Electricity Excise Tax Law is amended by
13changing Section 2-4 as follows:
 
14    (35 ILCS 640/2-4)
15    Sec. 2-4. Tax imposed.
16    (a) Except as provided in subsection (b), a tax is imposed
17on the privilege of using in this State electricity purchased
18for use or consumption and not for resale, other than by
19municipal corporations owning and operating a local
20transportation system for public service, at the following
21rates per kilowatt-hour delivered to the purchaser:
22        (i) For the first 2000 kilowatt-hours used or consumed
23    in a month: 0.330 cents per kilowatt-hour;
24        (ii) For the next 48,000 kilowatt-hours used or

 

 

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1    consumed in a month: 0.319 cents per kilowatt-hour;
2        (iii) For the next 50,000 kilowatt-hours used or
3    consumed in a month: 0.303 cents per kilowatt-hour;
4        (iv) For the next 400,000 kilowatt-hours used or
5    consumed in a month: 0.297 cents per kilowatt-hour;
6        (v) For the next 500,000 kilowatt-hours used or
7    consumed in a month: 0.286 cents per kilowatt-hour;
8        (vi) For the next 2,000,000 kilowatt-hours used or
9    consumed in a month: 0.270 cents per kilowatt-hour;
10        (vii) For the next 2,000,000 kilowatt-hours used or
11    consumed in a month: 0.254 cents per kilowatt-hour;
12        (viii) For the next 5,000,000 kilowatt-hours used or
13    consumed in a month: 0.233 cents per kilowatt-hour;
14        (ix) For the next 10,000,000 kilowatt-hours used or
15    consumed in a month: 0.207 cents per kilowatt-hour;
16        (x) For all electricity in excess of 20,000,000
17    kilowatt-hours used or consumed in a month: 0.202 cents per
18    kilowatt-hour.
19    Provided, that in lieu of the foregoing rates, the tax is
20imposed on a self-assessing purchaser at the rate of 5.1% of
21the self-assessing purchaser's purchase price for all
22electricity distributed, supplied, furnished, sold,
23transmitted and delivered to the self-assessing purchaser in a
24month.
25    (b) A tax is imposed on the privilege of using in this
26State electricity purchased from a municipal system or electric

 

 

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1cooperative, as defined in Article XVII of the Public Utilities
2Act, which has not made an election as permitted by either
3Section 17-200 or Section 17-300 of such Act, at the lesser of
40.32 cents per kilowatt hour of all electricity distributed,
5supplied, furnished, sold, transmitted, and delivered by such
6municipal system or electric cooperative to the purchaser or 5%
7of each such purchaser's purchase price for all electricity
8distributed, supplied, furnished, sold, transmitted, and
9delivered by such municipal system or electric cooperative to
10the purchaser, whichever is the lower rate as applied to each
11purchaser in each billing period.
12    (c) The tax imposed by this Section 2-4 is not imposed with
13respect to any use of electricity by business enterprises
14certified under Section 9-222.1 or 9-222.1A of the Public
15Utilities Act, as amended, to the extent of such exemption and
16during the time specified by the Department of Commerce and
17Economic Opportunity; or with respect to any transaction in
18interstate commerce, or otherwise, to the extent to which such
19transaction may not, under the Constitution and statutes of the
20United States, be made the subject of taxation by this State.
21    (d) Beginning July 1, 2014, a business enterprise that is
22certified as a data center by the Department of Commerce and
23Economic Opportunity is exempt from the tax imposed under this
24Section. The Department of Commerce and Economic Opportunity
25may adopt rules to carry out the provisions of this subsection,
26including procedures for applying for the exemption. The

 

 

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1Department of Commerce and Economic Opportunity may require
2that the business enterprise repay the exempted amount if the
3business enterprise fails to comply with the terms and
4conditions certification. Upon certification of the business
5enterprise, the Department of Commerce and Economic
6Opportunity shall notify the Department of Revenue of the
7certification. The Department of Revenue shall then notify the
8public utility of the exemption status of the business
9enterprise. The exemption shall take effect upon certification
10of the business enterprise.
11(Source: P.A. 94-793, eff. 5-19-06.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".