Illinois General Assembly - Full Text of HB5618
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Full Text of HB5618  101st General Assembly

HB5618 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5618

 

Introduced , by Rep. Barbara Hernandez

 

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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2020, breast pumps, breast pump collection and storage supplies, and breast pump kits are exempt from the taxes imposed under those Acts. Effective immediately.


LRB101 19229 HLH 68693 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5618LRB101 19229 HLH 68693 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1stated on customers' bills for the purchase and consumption of
2food and beverages purchased at retail from a retailer, to the
3extent that the proceeds of the service charge are in fact
4turned over as tips or as a substitute for tips to the
5employees who participate directly in preparing, serving,
6hosting or cleaning up the food or beverage function with
7respect to which the service charge is imposed.
8    (14) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of rigs,
10rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
11tubular goods, including casing and drill strings, (iii) pumps
12and pump-jack units, (iv) storage tanks and flow lines, (v) any
13individual replacement part for oil field exploration,
14drilling, and production equipment, and (vi) machinery and
15equipment purchased for lease; but excluding motor vehicles
16required to be registered under the Illinois Vehicle Code.
17    (15) Photoprocessing machinery and equipment, including
18repair and replacement parts, both new and used, including that
19manufactured on special order, certified by the purchaser to be
20used primarily for photoprocessing, and including
21photoprocessing machinery and equipment purchased for lease.
22    (16) Until July 1, 2023, coal and aggregate exploration,
23mining, off-highway hauling, processing, maintenance, and
24reclamation equipment, including replacement parts and
25equipment, and including equipment purchased for lease, but
26excluding motor vehicles required to be registered under the

 

 

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1Illinois Vehicle Code. The changes made to this Section by
2Public Act 97-767 apply on and after July 1, 2003, but no claim
3for credit or refund is allowed on or after August 16, 2013
4(the effective date of Public Act 98-456) for such taxes paid
5during the period beginning July 1, 2003 and ending on August
616, 2013 (the effective date of Public Act 98-456).
7    (17) 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    (18) Manufacturing and assembling machinery and equipment
14used primarily in the process of manufacturing or assembling
15tangible personal property for wholesale or retail sale or
16lease, whether that sale or lease is made directly by the
17manufacturer or by some other person, whether the materials
18used in the process are owned by the manufacturer or some other
19person, or whether that sale or lease is made apart from or as
20an incident to the seller's engaging in the service occupation
21of producing machines, tools, dies, jigs, patterns, gauges, or
22other similar items of no commercial value on special order for
23a particular purchaser. The exemption provided by this
24paragraph (18) includes production related tangible personal
25property, as defined in Section 3-50, purchased on or after
26July 1, 2019. The exemption provided by this paragraph (18)

 

 

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1does not include machinery and equipment used in (i) the
2generation of electricity for wholesale or retail sale; (ii)
3the generation or treatment of natural or artificial gas for
4wholesale or retail sale that is delivered to customers through
5pipes, pipelines, or mains; or (iii) the treatment of water for
6wholesale or retail sale that is delivered to customers through
7pipes, pipelines, or mains. The provisions of Public Act 98-583
8are declaratory of existing law as to the meaning and scope of
9this exemption. Beginning on July 1, 2017, the exemption
10provided by this paragraph (18) includes, but is not limited
11to, graphic arts machinery and equipment, as defined in
12paragraph (6) of this Section.
13    (19) Personal property delivered to a purchaser or
14purchaser's donee inside Illinois when the purchase order for
15that personal property was received by a florist located
16outside Illinois who has a florist located inside Illinois
17deliver the personal property.
18    (20) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (21) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (21) is exempt from the provisions
26of Section 3-90, and the exemption provided for under this item

 

 

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1(21) applies for all periods beginning May 30, 1995, but no
2claim for credit or refund is allowed on or after January 1,
32008 for such taxes paid during the period beginning May 30,
42000 and ending on January 1, 2008.
5    (22) Computers and communications equipment utilized for
6any hospital purpose and equipment used in the diagnosis,
7analysis, or treatment of hospital patients purchased by a
8lessor who leases the equipment, under a lease of one year or
9longer executed or in effect at the time the lessor would
10otherwise be subject to the tax imposed by this Act, to a
11hospital that has been issued an active tax exemption
12identification number by the Department under Section 1g of the
13Retailers' Occupation Tax Act. If the equipment is leased in a
14manner that does not qualify for this exemption or is used in
15any other non-exempt manner, the lessor shall be liable for the
16tax imposed under this Act or the Service Use Tax Act, as the
17case may be, based on the fair market value of the property at
18the time the non-qualifying use occurs. No lessor shall collect
19or attempt to collect an amount (however designated) that
20purports to reimburse that lessor for the tax imposed by this
21Act or the Service Use Tax Act, as the case may be, if the tax
22has not been paid by the lessor. If a lessor improperly
23collects any such amount from the lessee, the lessee shall have
24a legal right to claim a refund of that amount from the lessor.
25If, however, that amount is not refunded to the lessee for any
26reason, the lessor is liable to pay that amount to the

 

 

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

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (25) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is used in the
9performance of infrastructure repairs in this State, including
10but not limited to municipal roads and streets, access roads,
11bridges, sidewalks, waste disposal systems, water and sewer
12line extensions, water distribution and purification
13facilities, storm water drainage and retention facilities, and
14sewage treatment facilities, resulting from a State or
15federally declared disaster in Illinois or bordering Illinois
16when such repairs are initiated on facilities located in the
17declared disaster area within 6 months after the disaster.
18    (26) Beginning July 1, 1999, game or game birds purchased
19at a "game breeding and hunting preserve area" as that term is
20used in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-90.
22    (27) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the Department
26to be organized and operated exclusively for educational

 

 

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

 

 

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1exempt from the provisions of Section 3-90.
2    (29) Beginning January 1, 2000 and through December 31,
32001, new or used automatic vending machines that prepare and
4serve hot food and beverages, including coffee, soup, and other
5items, and replacement parts for these machines. Beginning
6January 1, 2002 and through June 30, 2003, machines and parts
7for machines used in commercial, coin-operated amusement and
8vending business if a use or occupation tax is paid on the
9gross receipts derived from the use of the commercial,
10coin-operated amusement and vending machines. This paragraph
11is exempt from the provisions of Section 3-90.
12    (30) Beginning January 1, 2001 and through June 30, 2016,
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages, soft
15drinks, and food that has been prepared for immediate
16consumption) and prescription and nonprescription medicines,
17drugs, medical appliances, and insulin, urine testing
18materials, syringes, and needles used by diabetics, for human
19use, when purchased for use by a person receiving medical
20assistance under Article V of the Illinois Public Aid Code who
21resides in a licensed long-term care facility, as defined in
22the Nursing Home Care Act, or in a licensed facility as defined
23in the ID/DD Community Care Act, the MC/DD Act, or the
24Specialized Mental Health Rehabilitation Act of 2013.
25    (31) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), computers and communications equipment

 

 

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

 

 

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1executed or in effect at the time the lessor would otherwise be
2subject to the tax imposed by this Act, to a governmental body
3that has been issued an active sales tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. If the property is leased in a
6manner that does not qualify for this exemption or used in any
7other nonexempt manner, the lessor shall be liable for the tax
8imposed under this Act or the Service Use Tax Act, as the case
9may be, based on the fair market value of the property at the
10time the nonqualifying use occurs. No lessor shall collect or
11attempt to collect an amount (however designated) that purports
12to reimburse that lessor for the tax imposed by this Act or the
13Service Use Tax Act, as the case may be, if the tax has not been
14paid by the lessor. If a lessor improperly collects any such
15amount from the lessee, the lessee shall have a legal right to
16claim a refund of that amount from the lessor. If, however,
17that amount is not refunded to the lessee for any reason, the
18lessor is liable to pay that amount to the Department. This
19paragraph is exempt from the provisions of Section 3-90.
20    (33) On and after July 1, 2003 and through June 30, 2004,
21the use in this State of motor vehicles of the second division
22with a gross vehicle weight in excess of 8,000 pounds and that
23are subject to the commercial distribution fee imposed under
24Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
251, 2004 and through June 30, 2005, the use in this State of
26motor vehicles of the second division: (i) with a gross vehicle

 

 

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1weight rating in excess of 8,000 pounds; (ii) that are subject
2to the commercial distribution fee imposed under Section
33-815.1 of the Illinois Vehicle Code; and (iii) that are
4primarily used for commercial purposes. Through June 30, 2005,
5this exemption applies to repair and replacement parts added
6after the initial purchase of such a motor vehicle if that
7motor vehicle is used in a manner that would qualify for the
8rolling stock exemption otherwise provided for in this Act. For
9purposes of this paragraph, the term "used for commercial
10purposes" means the transportation of persons or property in
11furtherance of any commercial or industrial enterprise,
12whether for-hire or not.
13    (34) Beginning January 1, 2008, tangible personal property
14used in the construction or maintenance of a community water
15supply, as defined under Section 3.145 of the Environmental
16Protection Act, that is operated by a not-for-profit
17corporation that holds a valid water supply permit issued under
18Title IV of the Environmental Protection Act. This paragraph is
19exempt from the provisions of Section 3-90.
20    (35) Beginning January 1, 2010, materials, parts,
21equipment, components, and furnishings incorporated into or
22upon an aircraft as part of the modification, refurbishment,
23completion, replacement, repair, or maintenance of the
24aircraft. This exemption includes consumable supplies used in
25the modification, refurbishment, completion, replacement,
26repair, and maintenance of aircraft, but excludes any

 

 

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1materials, parts, equipment, components, and consumable
2supplies used in the modification, replacement, repair, and
3maintenance of aircraft engines or power plants, whether such
4engines or power plants are installed or uninstalled upon any
5such aircraft. "Consumable supplies" include, but are not
6limited to, adhesive, tape, sandpaper, general purpose
7lubricants, cleaning solution, latex gloves, and protective
8films. This exemption applies only to the use of qualifying
9tangible personal property by persons who modify, refurbish,
10complete, repair, replace, or maintain aircraft and who (i)
11hold an Air Agency Certificate and are empowered to operate an
12approved repair station by the Federal Aviation
13Administration, (ii) have a Class IV Rating, and (iii) conduct
14operations in accordance with Part 145 of the Federal Aviation
15Regulations. The exemption does not include aircraft operated
16by a commercial air carrier providing scheduled passenger air
17service pursuant to authority issued under Part 121 or Part 129
18of the Federal Aviation Regulations. The changes made to this
19paragraph (35) by Public Act 98-534 are declarative of existing
20law.
21    (36) Tangible personal property purchased by a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

 

 

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

 

 

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1tenant of the data center or by a contractor or subcontractor
2of the owner, operator, or tenant. Data centers that would have
3qualified for a certificate of exemption prior to January 1,
42020 had Public Act 101-31 this amendatory Act of the 101st
5General Assembly been in effect, may apply for and obtain an
6exemption for subsequent purchases of computer equipment or
7enabling software purchased or leased to upgrade, supplement,
8or replace computer equipment or enabling software purchased or
9leased in the original investment that would have qualified.
10    The Department of Commerce and Economic Opportunity shall
11grant a certificate of exemption under this item (40) to
12qualified data centers as defined by Section 605-1025 of the
13Department of Commerce and Economic Opportunity Law of the
14Civil Administrative Code of Illinois.
15    For the purposes of this item (40):
16        "Data center" means a building or a series of buildings
17    rehabilitated or constructed to house working servers in
18    one physical location or multiple sites within the State of
19    Illinois.
20        "Qualified tangible personal property" means:
21    electrical systems and equipment; climate control and
22    chilling equipment and systems; mechanical systems and
23    equipment; monitoring and secure systems; emergency
24    generators; hardware; computers; servers; data storage
25    devices; network connectivity equipment; racks; cabinets;
26    telecommunications cabling infrastructure; raised floor

 

 

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1    systems; peripheral components or systems; software;
2    mechanical, electrical, or plumbing systems; battery
3    systems; cooling systems and towers; temperature control
4    systems; other cabling; and other data center
5    infrastructure equipment and systems necessary to operate
6    qualified tangible personal property, including fixtures;
7    and component parts of any of the foregoing, including
8    installation, maintenance, repair, refurbishment, and
9    replacement of qualified tangible personal property to
10    generate, transform, transmit, distribute, or manage
11    electricity necessary to operate qualified tangible
12    personal property; and all other tangible personal
13    property that is essential to the operations of a computer
14    data center. The term "qualified tangible personal
15    property" also includes building materials physically
16    incorporated in to the qualifying data center. To document
17    the exemption allowed under this Section, the retailer must
18    obtain from the purchaser a copy of the certificate of
19    eligibility issued by the Department of Commerce and
20    Economic Opportunity.
21    This item (40) is exempt from the provisions of Section
223-90.
23    (41) Beginning July 1, 2020, breast pumps, breast pump
24collection and storage supplies, and breast pump kits. This
25item (41) is exempt from the provisions of Section 3-90.
26    As used in this item (41), "breast pump" means an

 

 

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

 

 

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1products that relieve breastfeeding-related symptoms or
2conditions of the breasts or nipples, unless sold as part of a
3breast pump kit pre-packaged by the breast pump manufacturer or
4distributor.
5    "Breast pump kit" means a kit that contains a breast pump
6and breast pump collection and storage supplies or other
7taxable items of tangible personal property that may be useful
8to initiate, support, or sustain breastfeeding using a breast
9pump during lactation, so long as the other taxable items of
10tangible personal property sold with the breast pump kit at the
11time of sale are less than 10% of the total sales price of the
12breast pump kit.
13(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;
14100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
151-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
167-12-19; revised 9-23-19.)
 
17    Section 10. The Service Use Tax Act is amended by changing
18Section 3-5 as follows:
 
19    (35 ILCS 110/3-5)
20    Sec. 3-5. Exemptions. Use of the following tangible
21personal property is exempt from the tax imposed by this Act:
22    (1) Personal property purchased from a corporation,
23society, association, foundation, institution, or
24organization, other than a limited liability company, that is

 

 

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1organized and operated as a not-for-profit service enterprise
2for the benefit of persons 65 years of age or older if the
3personal property was not purchased by the enterprise for the
4purpose of resale by the enterprise.
5    (2) Personal property purchased by a non-profit Illinois
6county fair association for use in conducting, operating, or
7promoting the county fair.
8    (3) Personal property purchased by 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 July 1, 2001 (the
19effective date of Public Act 92-35), however, an entity
20otherwise eligible for this exemption shall not make tax-free
21purchases unless it has an active identification number issued
22by the Department.
23    (4) Legal tender, currency, medallions, or gold or silver
24coinage issued by the State of Illinois, the government of the
25United States of America, or the government of any foreign
26country, and bullion.

 

 

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1    (5) Until July 1, 2003 and beginning again on September 1,
22004 through August 30, 2014, graphic arts machinery and
3equipment, including repair and replacement parts, both new and
4used, and including that manufactured on special order or
5purchased for lease, certified by the purchaser to be used
6primarily for graphic arts production. Equipment includes
7chemicals or chemicals acting as catalysts but only if the
8chemicals or chemicals acting as catalysts effect a direct and
9immediate change upon a graphic arts product. Beginning on July
101, 2017, graphic arts machinery and equipment is included in
11the manufacturing and assembling machinery and equipment
12exemption under Section 2 of this Act.
13    (6) Personal property purchased from a teacher-sponsored
14student organization affiliated with an elementary or
15secondary school located in Illinois.
16    (7) Farm machinery and equipment, both new and used,
17including that manufactured on special order, certified by the
18purchaser to be used primarily for production agriculture or
19State or federal agricultural programs, including individual
20replacement parts for the machinery and equipment, including
21machinery and equipment purchased for lease, and including
22implements of husbandry defined in Section 1-130 of the
23Illinois Vehicle Code, farm machinery and agricultural
24chemical and fertilizer spreaders, and nurse wagons required to
25be registered under Section 3-809 of the Illinois Vehicle Code,
26but excluding other motor vehicles required to be registered

 

 

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

 

 

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

 

 

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1rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
2tubular goods, including casing and drill strings, (iii) pumps
3and pump-jack units, (iv) storage tanks and flow lines, (v) any
4individual replacement part for oil field exploration,
5drilling, and production equipment, and (vi) machinery and
6equipment purchased for lease; but excluding motor vehicles
7required to be registered under the Illinois Vehicle Code.
8    (11) Proceeds from the sale of photoprocessing machinery
9and equipment, including repair and replacement parts, both new
10and used, including that manufactured on special order,
11certified by the purchaser to be used primarily for
12photoprocessing, and including photoprocessing machinery and
13equipment purchased for lease.
14    (12) Until July 1, 2023, coal and aggregate exploration,
15mining, off-highway hauling, processing, maintenance, and
16reclamation equipment, including replacement parts and
17equipment, and including equipment purchased for lease, but
18excluding motor vehicles required to be registered under the
19Illinois Vehicle Code. The changes made to this Section by
20Public Act 97-767 apply on and after July 1, 2003, but no claim
21for credit or refund is allowed on or after August 16, 2013
22(the effective date of Public Act 98-456) for such taxes paid
23during the period beginning July 1, 2003 and ending on August
2416, 2013 (the effective date of Public Act 98-456).
25    (13) Semen used for artificial insemination of livestock
26for direct agricultural production.

 

 

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1    (14) Horses, or interests in horses, registered with and
2meeting the requirements of any of the Arabian Horse Club
3Registry of America, Appaloosa Horse Club, American Quarter
4Horse Association, United States Trotting Association, or
5Jockey Club, as appropriate, used for purposes of breeding or
6racing for prizes. This item (14) is exempt from the provisions
7of Section 3-75, and the exemption provided for under this item
8(14) applies for all periods beginning May 30, 1995, but no
9claim for credit or refund is allowed on or after January 1,
102008 (the effective date of Public Act 95-88) for such taxes
11paid during the period beginning May 30, 2000 and ending on
12January 1, 2008 (the effective date of Public Act 95-88).
13    (15) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of the
21Retailers' Occupation Tax Act. If the equipment is leased in a
22manner that does not qualify for this exemption or is used in
23any other non-exempt manner, the lessor shall be liable for the
24tax imposed under this Act or the Use Tax Act, as the case may
25be, based on the fair market value of the property at the time
26the non-qualifying use occurs. No lessor shall collect or

 

 

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

 

 

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

 

 

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1used in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 3-75.
3    (20) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the Department
7to be organized and operated exclusively for educational
8purposes. For purposes of this exemption, "a corporation,
9limited liability company, society, association, foundation,
10or institution organized and operated exclusively for
11educational purposes" means all tax-supported public schools,
12private schools that offer systematic instruction in useful
13branches of learning by methods common to public schools and
14that compare favorably in their scope and intensity with the
15course of study presented in tax-supported schools, and
16vocational or technical schools or institutes organized and
17operated exclusively to provide a course of study of not less
18than 6 weeks duration and designed to prepare individuals to
19follow a trade or to pursue a manual, technical, mechanical,
20industrial, business, or commercial occupation.
21    (21) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

 

 

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

 

 

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1assistance under Article V of the Illinois Public Aid Code who
2resides in a licensed long-term care facility, as defined in
3the Nursing Home Care Act, or in a licensed facility as defined
4in the ID/DD Community Care Act, the MC/DD Act, or the
5Specialized Mental Health Rehabilitation Act of 2013.
6    (24) Beginning on August 2, 2001 (the effective date of
7Public Act 92-227), computers and communications equipment
8utilized for any hospital purpose and equipment used in the
9diagnosis, analysis, or treatment of hospital patients
10purchased by a lessor who leases the equipment, under a lease
11of one year or longer executed or in effect at the time the
12lessor would otherwise be subject to the tax imposed by this
13Act, to a hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of the
15Retailers' Occupation Tax Act. If the equipment 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

 

 

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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    (25) Beginning on August 2, 2001 (the effective date of
5Public Act 92-227), personal property purchased by a lessor who
6leases the property, under a lease of one year or longer
7executed or in effect at the time the lessor would otherwise be
8subject to the tax imposed by this Act, to a governmental body
9that has been issued an active tax exemption identification
10number by the Department under Section 1g of the Retailers'
11Occupation Tax Act. If the property is leased in a manner that
12does not qualify for this exemption or is used in any other
13nonexempt manner, the lessor shall be liable for the tax
14imposed under this Act or the Use Tax Act, as the case may be,
15based on the fair market value of the property at the time the
16nonqualifying use occurs. No lessor shall collect or attempt to
17collect an amount (however designated) that purports to
18reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid by
20the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that amount
23is not refunded to the lessee for any reason, the lessor is
24liable to pay that amount to the Department. This paragraph is
25exempt from the provisions of Section 3-75.
26    (26) Beginning January 1, 2008, tangible personal property

 

 

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

 

 

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1have a Class IV Rating, and (iii) conduct operations in
2accordance with Part 145 of the Federal Aviation Regulations.
3The exemption does not include aircraft operated by a
4commercial air carrier providing scheduled passenger air
5service pursuant to authority issued under Part 121 or Part 129
6of the Federal Aviation Regulations. The changes made to this
7paragraph (27) by Public Act 98-534 are declarative of existing
8law.
9    (28) Tangible personal property purchased by a
10public-facilities corporation, as described in Section
1111-65-10 of the Illinois Municipal Code, for purposes of
12constructing or furnishing a municipal convention hall, but
13only if the legal title to the municipal convention hall is
14transferred to the municipality without any further
15consideration by or on behalf of the municipality at the time
16of the completion of the municipal convention hall or upon the
17retirement or redemption of any bonds or other debt instruments
18issued by the public-facilities corporation in connection with
19the development of the municipal convention hall. This
20exemption includes existing public-facilities corporations as
21provided in Section 11-65-25 of the Illinois Municipal Code.
22This paragraph is exempt from the provisions of Section 3-75.
23    (29) Beginning January 1, 2017, menstrual pads, tampons,
24and menstrual cups.
25    (30) Tangible personal property transferred to a purchaser
26who is exempt from the tax imposed by this Act by operation of

 

 

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1federal law. This paragraph is exempt from the provisions of
2Section 3-75.
3    (31) Qualified tangible personal property used in the
4construction or operation of a data center that has been
5granted a certificate of exemption by the Department of
6Commerce and Economic Opportunity, whether that tangible
7personal property is purchased by the owner, operator, or
8tenant of the data center or by a contractor or subcontractor
9of the owner, operator, or tenant. Data centers that would have
10qualified for a certificate of exemption prior to January 1,
112020 had this amendatory Act of the 101st General Assembly been
12in effect, may apply for and obtain an exemption for subsequent
13purchases of computer equipment or enabling software purchased
14or leased to upgrade, supplement, or replace computer equipment
15or enabling software purchased or leased in the original
16investment that would have qualified.
17    The Department of Commerce and Economic Opportunity shall
18grant a certificate of exemption under this item (31) to
19qualified data centers as defined by Section 605-1025 of the
20Department of Commerce and Economic Opportunity Law of the
21Civil Administrative Code of Illinois.
22    For the purposes of this item (31):
23        "Data center" means a building or a series of buildings
24    rehabilitated or constructed to house working servers in
25    one physical location or multiple sites within the State of
26    Illinois.

 

 

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

 

 

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1    Economic Opportunity.
2    This item (31) is exempt from the provisions of Section
33-75.
4    (32) Beginning July 1, 2020, breast pumps, breast pump
5collection and storage supplies, and breast pump kits. This
6item (32) is exempt from the provisions of Section 3-75.
7    As used in this item (32), "breast pump" means an
8electrically or manually-controlled pump device designed or
9marketed to be used to express milk from a human breast during
10lactation, including the pump device and any battery, AC
11adapter, or other power supply unit packaged and sold with the
12pump device at the time of sale to power the pump device.
13    "Breast pump collection and storage supplies" means items
14of tangible personal property designed or marketed to be used
15in conjunction with a breast pump to collect milk expressed
16from a human breast and to store collected milk until it is
17ready for consumption. "Breast pump collection and storage
18supplies" includes, but is not limited to: breast shields and
19breast shield connectors; breast pump tubes and tubing
20adapters; breast pump valves and membranes; backflow
21protectors and backflow protector adaptors; bottles and bottle
22caps specific to the operation of the breast pump; breast milk
23storage bags; and other items that may be useful to initiate,
24support, or sustain breast-feeding using a breast pump during
25lactation that may be sold separately but are generally sold as
26part of a breast pump kit.

 

 

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1    "Breast pump collection and storage supplies" does not
2include: (1) bottles and bottle caps not specific to the
3operation of the breast pump, (2) breast pump travel bags and
4other similar carrying accessories, including ice packs,
5labels, and other similar products; (3) breast pump cleaning
6supplies; (4) nursing bras, bra pads, breast shells, and other
7similar products; and (5) creams, ointments, and other similar
8products that relieve breastfeeding-related symptoms or
9conditions of the breasts or nipples, unless sold as part of a
10breast pump kit pre-packaged by the breast pump manufacturer or
11distributor.
12    "Breast pump kit" means a kit that contains a breast pump
13and breast pump collection and storage supplies or other
14taxable items of tangible personal property that may be useful
15to initiate, support, or sustain breastfeeding using a breast
16pump during lactation, so long as the other taxable items of
17tangible personal property sold with the breast pump kit at the
18time of sale are less than 10% of the total sales price of the
19breast pump kit.
20(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
21100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
227-12-19.)
 
23    Section 15. The Service Occupation Tax Act is amended by
24changing Section 3-5 as follows:
 

 

 

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1    (35 ILCS 115/3-5)
2    Sec. 3-5. Exemptions. The following tangible personal
3property is exempt from the tax imposed by this Act:
4    (1) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the benefit
8of persons 65 years of age or older if the personal property
9was not purchased by the enterprise for the purpose of resale
10by the enterprise.
11    (2) Personal property purchased by a not-for-profit
12Illinois county fair association for use in conducting,
13operating, or promoting the county fair.
14    (3) Personal property purchased by any not-for-profit arts
15or cultural organization that establishes, by proof required by
16the Department by rule, that it has received an exemption under
17Section 501(c)(3) of the Internal Revenue Code and that is
18organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after July 1, 2001 (the
25effective date of Public Act 92-35), however, an entity
26otherwise eligible for this exemption shall not make tax-free

 

 

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1purchases unless it has an active identification number issued
2by the Department.
3    (4) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (5) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new and
10used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product. Beginning on July
161, 2017, graphic arts machinery and equipment is included in
17the manufacturing and assembling machinery and equipment
18exemption under Section 2 of this Act.
19    (6) Personal property sold by a teacher-sponsored student
20organization affiliated with an elementary or secondary school
21located in Illinois.
22    (7) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or
25State or federal agricultural programs, including individual
26replacement parts for the machinery and equipment, including

 

 

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

 

 

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

 

 

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1in preparing, serving, hosting or cleaning up the food or
2beverage function with respect to which the service charge is
3imposed.
4    (10) Until July 1, 2003, oil field exploration, drilling,
5and production equipment, including (i) rigs and parts of rigs,
6rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
7tubular goods, including casing and drill strings, (iii) pumps
8and pump-jack units, (iv) storage tanks and flow lines, (v) any
9individual replacement part for oil field exploration,
10drilling, and production equipment, and (vi) machinery and
11equipment purchased for lease; but excluding motor vehicles
12required to be registered under the Illinois Vehicle Code.
13    (11) Photoprocessing machinery and equipment, including
14repair and replacement parts, both new and used, including that
15manufactured on special order, certified by the purchaser to be
16used primarily for photoprocessing, and including
17photoprocessing machinery and equipment purchased for lease.
18    (12) Until July 1, 2023, coal and aggregate exploration,
19mining, off-highway hauling, processing, maintenance, and
20reclamation equipment, including replacement parts and
21equipment, and including equipment purchased for lease, but
22excluding motor vehicles required to be registered under the
23Illinois Vehicle Code. The changes made to this Section by
24Public Act 97-767 apply on and after July 1, 2003, but no claim
25for credit or refund is allowed on or after August 16, 2013
26(the effective date of Public Act 98-456) for such taxes paid

 

 

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1during the period beginning July 1, 2003 and ending on August
216, 2013 (the effective date of Public Act 98-456).
3    (13) Beginning January 1, 1992 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks and food that has been prepared for immediate
7consumption) and prescription and non-prescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (14) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (15) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (15) is exempt from the provisions
24of Section 3-55, and the exemption provided for under this item
25(15) applies for all periods beginning May 30, 1995, but no
26claim for credit or refund is allowed on or after January 1,

 

 

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12008 (the effective date of Public Act 95-88) for such taxes
2paid during the period beginning May 30, 2000 and ending on
3January 1, 2008 (the effective date of Public Act 95-88).
4    (16) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients sold to a lessor
7who leases the equipment, under a lease of one year or longer
8executed or in effect at the time of the purchase, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act.
12    (17) Personal property sold to a lessor who leases the
13property, under a lease of one year or longer executed or in
14effect at the time of the purchase, to a governmental body that
15has been issued an active tax exemption identification number
16by the Department under Section 1g of the Retailers' Occupation
17Tax Act.
18    (18) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is donated for
21disaster relief to be used in a State or federally declared
22disaster area in Illinois or bordering Illinois by a
23manufacturer or retailer that is registered in this State to a
24corporation, society, association, foundation, or institution
25that has been issued a sales tax exemption identification
26number by the Department that assists victims of the disaster

 

 

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1who reside within the declared disaster area.
2    (19) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in the
5performance of infrastructure repairs in this State, including
6but not limited to municipal roads and streets, access roads,
7bridges, sidewalks, waste disposal systems, water and sewer
8line extensions, water distribution and purification
9facilities, storm water drainage and retention facilities, and
10sewage treatment facilities, resulting from a State or
11federally declared disaster in Illinois or bordering Illinois
12when such repairs are initiated on facilities located in the
13declared disaster area within 6 months after the disaster.
14    (20) Beginning July 1, 1999, game or game birds sold at a
15"game breeding and hunting preserve area" as that term is used
16in the Wildlife Code. This paragraph is exempt from the
17provisions of Section 3-55.
18    (21) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the Department
22to be organized and operated exclusively for educational
23purposes. For purposes of this exemption, "a corporation,
24limited liability company, society, association, foundation,
25or institution organized and operated exclusively for
26educational purposes" means all tax-supported public schools,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB5618- 53 -LRB101 19229 HLH 68693 b

1maintenance of aircraft engines or power plants, whether such
2engines or power plants are installed or uninstalled upon any
3such aircraft. "Consumable supplies" include, but are not
4limited to, adhesive, tape, sandpaper, general purpose
5lubricants, cleaning solution, latex gloves, and protective
6films. This exemption applies only to the transfer of
7qualifying tangible personal property incident to the
8modification, refurbishment, completion, replacement, repair,
9or maintenance of an aircraft by persons who (i) hold an Air
10Agency Certificate and are empowered to operate an approved
11repair station by the Federal Aviation Administration, (ii)
12have a Class IV Rating, and (iii) conduct operations in
13accordance with Part 145 of the Federal Aviation Regulations.
14The exemption does not include aircraft operated by a
15commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part 129
17of the Federal Aviation Regulations. The changes made to this
18paragraph (29) by Public Act 98-534 are declarative of existing
19law.
20    (30) Beginning January 1, 2017, menstrual pads, tampons,
21and menstrual cups.
22    (31) Tangible personal property transferred to a purchaser
23who is exempt from tax by operation of federal law. This
24paragraph is exempt from the provisions of Section 3-55.
25    (32) Qualified tangible personal property used in the
26construction or operation of a data center that has been

 

 

HB5618- 54 -LRB101 19229 HLH 68693 b

1granted a certificate of exemption by the Department of
2Commerce and Economic Opportunity, whether that tangible
3personal property is purchased by the owner, operator, or
4tenant of the data center or by a contractor or subcontractor
5of the owner, operator, or tenant. Data centers that would have
6qualified for a certificate of exemption prior to January 1,
72020 had this amendatory Act of the 101st General Assembly been
8in effect, may apply for and obtain an exemption for subsequent
9purchases of computer equipment or enabling software purchased
10or leased to upgrade, supplement, or replace computer equipment
11or enabling software purchased or leased in the original
12investment that would have qualified.
13    The Department of Commerce and Economic Opportunity shall
14grant a certificate of exemption under this item (32) to
15qualified data centers as defined by Section 605-1025 of the
16Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    For the purposes of this item (32):
19        "Data center" means a building or a series of buildings
20    rehabilitated or constructed to house working servers in
21    one physical location or multiple sites within the State of
22    Illinois.
23        "Qualified tangible personal property" means:
24    electrical systems and equipment; climate control and
25    chilling equipment and systems; mechanical systems and
26    equipment; monitoring and secure systems; emergency

 

 

HB5618- 55 -LRB101 19229 HLH 68693 b

1    generators; hardware; computers; servers; data storage
2    devices; network connectivity equipment; racks; cabinets;
3    telecommunications cabling infrastructure; raised floor
4    systems; peripheral components or systems; software;
5    mechanical, electrical, or plumbing systems; battery
6    systems; cooling systems and towers; temperature control
7    systems; other cabling; and other data center
8    infrastructure equipment and systems necessary to operate
9    qualified tangible personal property, including fixtures;
10    and component parts of any of the foregoing, including
11    installation, maintenance, repair, refurbishment, and
12    replacement of qualified tangible personal property to
13    generate, transform, transmit, distribute, or manage
14    electricity necessary to operate qualified tangible
15    personal property; and all other tangible personal
16    property that is essential to the operations of a computer
17    data center. The term "qualified tangible personal
18    property" also includes building materials physically
19    incorporated in to the qualifying data center. To document
20    the exemption allowed under this Section, the retailer must
21    obtain from the purchaser a copy of the certificate of
22    eligibility issued by the Department of Commerce and
23    Economic Opportunity.
24    This item (32) is exempt from the provisions of Section
253-55.
26    (33) Beginning July 1, 2020, breast pumps, breast pump

 

 

HB5618- 56 -LRB101 19229 HLH 68693 b

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

 

 

HB5618- 57 -LRB101 19229 HLH 68693 b

1labels, and other similar products; (3) breast pump cleaning
2supplies; (4) nursing bras, bra pads, breast shells, and other
3similar products; and (5) creams, ointments, and other similar
4products that relieve breastfeeding-related symptoms or
5conditions of the breasts or nipples, unless sold as part of a
6breast pump kit pre-packaged by the breast pump manufacturer or
7distributor.
8    "Breast pump kit" means a kit that contains a breast pump
9and breast pump collection and storage supplies or other
10taxable items of tangible personal property that may be useful
11to initiate, support, or sustain breastfeeding using a breast
12pump during lactation, so long as the other taxable items of
13tangible personal property sold with the breast pump kit at the
14time of sale are less than 10% of the total sales price of the
15breast pump kit.
16(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
17100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
187-12-19.)
 
19    Section 20. The Retailers' Occupation Tax Act is amended by
20changing Section 2-5 as follows:
 
21    (35 ILCS 120/2-5)
22    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
23sale of the following tangible personal property are exempt
24from the tax imposed by this Act:

 

 

HB5618- 58 -LRB101 19229 HLH 68693 b

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

 

 

HB5618- 59 -LRB101 19229 HLH 68693 b

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

 

 

HB5618- 60 -LRB101 19229 HLH 68693 b

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

 

 

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1    such as symphony orchestras and theatrical groups, arts and
2    cultural service organizations, local arts councils,
3    visual arts organizations, and media arts organizations.
4    On and after July 1, 2001 (the effective date of Public Act
5    92-35), however, an entity otherwise eligible for this
6    exemption shall not make tax-free purchases unless it has
7    an active identification number issued by the Department.
8        (10) Personal property sold by a corporation, society,
9    association, foundation, institution, or organization,
10    other than a limited liability company, that is organized
11    and operated as a not-for-profit service enterprise for the
12    benefit of persons 65 years of age or older if the personal
13    property was not purchased by the enterprise for the
14    purpose of resale by the enterprise.
15        (11) Personal property sold to a governmental body, to
16    a corporation, society, association, foundation, or
17    institution organized and operated exclusively for
18    charitable, religious, or educational purposes, or to a
19    not-for-profit corporation, society, association,
20    foundation, institution, or organization that has no
21    compensated officers or employees and that is organized and
22    operated primarily for the recreation of persons 55 years
23    of age or older. A limited liability company may qualify
24    for the exemption under this paragraph only if the limited
25    liability company is organized and operated exclusively
26    for educational purposes. On and after July 1, 1987,

 

 

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1    however, no entity otherwise eligible for this exemption
2    shall make tax-free purchases unless it has an active
3    identification number issued by the Department.
4        (12) (Blank).
5        (12-5) On and after July 1, 2003 and through June 30,
6    2004, motor vehicles of the second division with a gross
7    vehicle weight in excess of 8,000 pounds that are subject
8    to the commercial distribution fee imposed under Section
9    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
10    2004 and through June 30, 2005, the use in this State of
11    motor vehicles of the second division: (i) with a gross
12    vehicle weight rating in excess of 8,000 pounds; (ii) that
13    are subject to the commercial distribution fee imposed
14    under Section 3-815.1 of the Illinois Vehicle Code; and
15    (iii) that are primarily used for commercial purposes.
16    Through June 30, 2005, this exemption applies to repair and
17    replacement parts added after the initial purchase of such
18    a motor vehicle if that motor vehicle is used in a manner
19    that would qualify for the rolling stock exemption
20    otherwise provided for in this Act. For purposes of this
21    paragraph, "used for commercial purposes" means the
22    transportation of persons or property in furtherance of any
23    commercial or industrial enterprise whether for-hire or
24    not.
25        (13) Proceeds from sales to owners, lessors, or
26    shippers of tangible personal property that is utilized by

 

 

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1    interstate carriers for hire for use as rolling stock
2    moving in interstate commerce and equipment operated by a
3    telecommunications provider, licensed as a common carrier
4    by the Federal Communications Commission, which is
5    permanently installed in or affixed to aircraft moving in
6    interstate commerce.
7        (14) Machinery and equipment that will be used by the
8    purchaser, or a lessee of the purchaser, primarily in the
9    process of manufacturing or assembling tangible personal
10    property for wholesale or retail sale or lease, whether the
11    sale or lease is made directly by the manufacturer or by
12    some other person, whether the materials used in the
13    process are owned by the manufacturer or some other person,
14    or whether the sale or lease is made apart from or as an
15    incident to the seller's engaging in the service occupation
16    of producing machines, tools, dies, jigs, patterns,
17    gauges, or other similar items of no commercial value on
18    special order for a particular purchaser. The exemption
19    provided by this paragraph (14) does not include machinery
20    and equipment used in (i) the generation of electricity for
21    wholesale or retail sale; (ii) the generation or treatment
22    of natural or artificial gas for wholesale or retail sale
23    that is delivered to customers through pipes, pipelines, or
24    mains; or (iii) the treatment of water for wholesale or
25    retail sale that is delivered to customers through pipes,
26    pipelines, or mains. The provisions of Public Act 98-583

 

 

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1    are declaratory of existing law as to the meaning and scope
2    of this exemption. Beginning on July 1, 2017, the exemption
3    provided by this paragraph (14) includes, but is not
4    limited to, graphic arts machinery and equipment, as
5    defined in paragraph (4) of this Section.
6        (15) Proceeds of mandatory service charges separately
7    stated on customers' bills for purchase and consumption of
8    food and beverages, to the extent that the proceeds of the
9    service charge are in fact turned over as tips or as a
10    substitute for tips to the employees who participate
11    directly in preparing, serving, hosting or cleaning up the
12    food or beverage function with respect to which the service
13    charge is imposed.
14        (16) Tangible personal property sold to a purchaser if
15    the purchaser is exempt from use tax by operation of
16    federal law. This paragraph is exempt from the provisions
17    of Section 2-70.
18        (17) Tangible personal property sold to a common
19    carrier by rail or motor that receives the physical
20    possession of the property in Illinois and that transports
21    the property, or shares with another common carrier in the
22    transportation of the property, out of Illinois on a
23    standard uniform bill of lading showing the seller of the
24    property as the shipper or consignor of the property to a
25    destination outside Illinois, for use outside Illinois.
26        (18) Legal tender, currency, medallions, or gold or

 

 

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1    silver coinage issued by the State of Illinois, the
2    government of the United States of America, or the
3    government of any foreign country, and bullion.
4        (19) Until July 1, 2003, oil field exploration,
5    drilling, and production equipment, including (i) rigs and
6    parts of rigs, rotary rigs, cable tool rigs, and workover
7    rigs, (ii) pipe and tubular goods, including casing and
8    drill strings, (iii) pumps and pump-jack units, (iv)
9    storage tanks and flow lines, (v) any individual
10    replacement part for oil field exploration, drilling, and
11    production equipment, and (vi) machinery and equipment
12    purchased for lease; but excluding motor vehicles required
13    to be registered under the Illinois Vehicle Code.
14        (20) Photoprocessing machinery and equipment,
15    including repair and replacement parts, both new and used,
16    including that manufactured on special order, certified by
17    the purchaser to be used primarily for photoprocessing, and
18    including photoprocessing machinery and equipment
19    purchased for lease.
20        (21) Until July 1, 2023, coal and aggregate
21    exploration, mining, off-highway hauling, processing,
22    maintenance, and reclamation equipment, including
23    replacement parts and equipment, and including equipment
24    purchased for lease, but excluding motor vehicles required
25    to be registered under the Illinois Vehicle Code. The
26    changes made to this Section by Public Act 97-767 apply on

 

 

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1    and after July 1, 2003, but no claim for credit or refund
2    is allowed on or after August 16, 2013 (the effective date
3    of Public Act 98-456) for such taxes paid during the period
4    beginning July 1, 2003 and ending on August 16, 2013 (the
5    effective date of Public Act 98-456).
6        (22) Until June 30, 2013, fuel and petroleum products
7    sold to or used by an air carrier, certified by the carrier
8    to be used for consumption, shipment, or storage in the
9    conduct of its business as an air common carrier, for a
10    flight destined for or returning from a location or
11    locations outside the United States without regard to
12    previous or subsequent domestic stopovers.
13        Beginning July 1, 2013, fuel and petroleum products
14    sold to or used by an air carrier, certified by the carrier
15    to be used for consumption, shipment, or storage in the
16    conduct of its business as an air common carrier, for a
17    flight that (i) is engaged in foreign trade or is engaged
18    in trade between the United States and any of its
19    possessions and (ii) transports at least one individual or
20    package for hire from the city of origination to the city
21    of final destination on the same aircraft, without regard
22    to a change in the flight number of that aircraft.
23        (23) A transaction in which the purchase order is
24    received by a florist who is located outside Illinois, but
25    who has a florist located in Illinois deliver the property
26    to the purchaser or the purchaser's donee in Illinois.

 

 

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

 

 

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1    on taxable property in the state in which the purchaser is
2    a resident, except that the tax shall not exceed the tax
3    that would otherwise be imposed under this Act. At the time
4    of the sale, the purchaser shall execute a statement,
5    signed under penalty of perjury, of his or her intent to
6    title the vehicle in the state in which the purchaser is a
7    resident within 30 days after the sale and of the fact of
8    the payment to the State of Illinois of tax in an amount
9    equivalent to the state's rate of tax on taxable property
10    in his or her state of residence and shall submit the
11    statement to the appropriate tax collection agency in his
12    or her state of residence. In addition, the retailer must
13    retain a signed copy of the statement in his or her
14    records. Nothing in this item shall be construed to require
15    the removal of the vehicle from this state following the
16    filing of an intent to title the vehicle in the purchaser's
17    state of residence if the purchaser titles the vehicle in
18    his or her state of residence within 30 days after the date
19    of sale. The tax collected under this Act in accordance
20    with this item (25-5) shall be proportionately distributed
21    as if the tax were collected at the 6.25% general rate
22    imposed under this Act.
23        (25-7) Beginning on July 1, 2007, no tax is imposed
24    under this Act on the sale of an aircraft, as defined in
25    Section 3 of the Illinois Aeronautics Act, if all of the
26    following conditions are met:

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    of aircraft engines or power plants, whether such engines
2    or power plants are installed or uninstalled upon any such
3    aircraft. "Consumable supplies" include, but are not
4    limited to, adhesive, tape, sandpaper, general purpose
5    lubricants, cleaning solution, latex gloves, and
6    protective films. This exemption applies only to the sale
7    of qualifying tangible personal property to persons who
8    modify, refurbish, complete, replace, or maintain an
9    aircraft and who (i) hold an Air Agency Certificate and are
10    empowered to operate an approved repair station by the
11    Federal Aviation Administration, (ii) have a Class IV
12    Rating, and (iii) conduct operations in accordance with
13    Part 145 of the Federal Aviation Regulations. The exemption
14    does not include aircraft operated by a commercial air
15    carrier providing scheduled passenger air service pursuant
16    to authority issued under Part 121 or Part 129 of the
17    Federal Aviation Regulations. The changes made to this
18    paragraph (40) by Public Act 98-534 are declarative of
19    existing law.
20        (41) Tangible personal property sold to a
21    public-facilities corporation, as described in Section
22    11-65-10 of the Illinois Municipal Code, for purposes of
23    constructing or furnishing a municipal convention hall,
24    but only if the legal title to the municipal convention
25    hall is transferred to the municipality without any further
26    consideration by or on behalf of the municipality at the

 

 

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1    time of the completion of the municipal convention hall or
2    upon the retirement or redemption of any bonds or other
3    debt instruments issued by the public-facilities
4    corporation in connection with the development of the
5    municipal convention hall. This exemption includes
6    existing public-facilities corporations as provided in
7    Section 11-65-25 of the Illinois Municipal Code. This
8    paragraph is exempt from the provisions of Section 2-70.
9        (42) Beginning January 1, 2017, menstrual pads,
10    tampons, and menstrual cups.
11        (43) Merchandise that is subject to the Rental Purchase
12    Agreement Occupation and Use Tax. The purchaser must
13    certify that the item is purchased to be rented subject to
14    a rental purchase agreement, as defined in the Rental
15    Purchase Agreement Act, and provide proof of registration
16    under the Rental Purchase Agreement Occupation and Use Tax
17    Act. This paragraph is exempt from the provisions of
18    Section 2-70.
19        (44) Qualified tangible personal property used in the
20    construction or operation of a data center that has been
21    granted a certificate of exemption by the Department of
22    Commerce and Economic Opportunity, whether that tangible
23    personal property is purchased by the owner, operator, or
24    tenant of the data center or by a contractor or
25    subcontractor of the owner, operator, or tenant. Data
26    centers that would have qualified for a certificate of

 

 

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

 

 

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1        systems; battery systems; cooling systems and towers;
2        temperature control systems; other cabling; and other
3        data center infrastructure equipment and systems
4        necessary to operate qualified tangible personal
5        property, including fixtures; and component parts of
6        any of the foregoing, including installation,
7        maintenance, repair, refurbishment, and replacement of
8        qualified tangible personal property to generate,
9        transform, transmit, distribute, or manage electricity
10        necessary to operate qualified tangible personal
11        property; and all other tangible personal property
12        that is essential to the operations of a computer data
13        center. The term "qualified tangible personal
14        property" also includes building materials physically
15        incorporated in to the qualifying data center. To
16        document the exemption allowed under this Section, the
17        retailer must obtain from the purchaser a copy of the
18        certificate of eligibility issued by the Department of
19        Commerce and Economic Opportunity.
20        This item (44) is exempt from the provisions of Section
21    2-70.
22        (45) Beginning July 1, 2020, breast pumps, breast pump
23    collection and storage supplies, and breast pump kits. This
24    item (45) is exempt from the provisions of Section 2-70.
25        As used in this item (45), "breast pump" means an
26    electrically or manually-controlled pump device designed

 

 

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

 

 

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1    shells, and other similar products; and (5) creams,
2    ointments, and other similar products that relieve
3    breastfeeding-related symptoms or conditions of the
4    breasts or nipples, unless sold as part of a breast pump
5    kit pre-packaged by the breast pump manufacturer or
6    distributor.
7        "Breast pump kit" means a kit that contains a breast
8    pump and breast pump collection and storage supplies or
9    other taxable items of tangible personal property that may
10    be useful to initiate, support, or sustain breastfeeding
11    using a breast pump during lactation, so long as the other
12    taxable items of tangible personal property sold with the
13    breast pump kit at the time of sale are less than 10% of
14    the total sales price of the breast pump kit.
15(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
16100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
178-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
18eff. 7-12-19.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.