Illinois General Assembly - Full Text of SB2456
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Full Text of SB2456  102nd General Assembly

SB2456 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2456

 

Introduced 2/26/2021, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 105/3-10
35 ILCS 110/3-5
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 115/3-5
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 120/2-5
35 ILCS 120/2-10

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and medical devices are exempt from the taxes under those Acts. Effective July 1, 2021.


LRB102 16128 HLH 21504 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2456LRB102 16128 HLH 21504 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 Sections
53-5 and 3-10 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
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized 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
24exemption identification 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
5and used, 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
11a graphic arts product. Beginning on July 1, 2017, graphic
12arts machinery and equipment is included in the manufacturing
13and assembling machinery and equipment exemption under
14paragraph (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
9to be registered under Section 3-809 of the Illinois Vehicle
10Code, but excluding other motor vehicles required to be
11registered under the Illinois Vehicle Code. Horticultural
12polyhouses or hoop houses used for propagating, growing, or
13overwintering plants shall be considered farm machinery and
14equipment under this item (11). Agricultural chemical tender
15tanks and dry boxes shall include units sold separately from a
16motor vehicle required to be licensed and units sold mounted
17on a motor vehicle required to be licensed if the selling price
18of the tender 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
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (13) Proceeds of mandatory service charges separately

 

 

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

 

 

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

 

 

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

 

 

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1provisions of Section 3-90, and the exemption provided for
2under this item (21) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 for such taxes paid during the period
5beginning May 30, 2000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other non-exempt manner, the lessor shall be liable for
17the tax imposed under this Act or the Service Use Tax Act, as
18the case may be, based on the fair market value of the property
19at the time the non-qualifying use occurs. No lessor shall
20collect or attempt to collect an amount (however designated)
21that purports to reimburse that lessor for the tax imposed by
22this Act or the Service Use Tax Act, as the case may be, if the
23tax has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

 

 

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

 

 

SB2456- 11 -LRB102 16128 HLH 21504 b

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

 

 

SB2456- 12 -LRB102 16128 HLH 21504 b

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

 

 

SB2456- 13 -LRB102 16128 HLH 21504 b

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

 

 

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

 

 

SB2456- 15 -LRB102 16128 HLH 21504 b

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

 

 

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1with a gross vehicle weight in excess of 8,000 pounds and that
2are subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4July 1, 2004 and through June 30, 2005, the use in this State
5of motor vehicles of the second division: (i) with a gross
6vehicle weight rating in excess of 8,000 pounds; (ii) that are
7subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9are primarily used for commercial purposes. Through June 30,
102005, this exemption applies to repair and replacement parts
11added after the initial purchase of such a motor vehicle if
12that motor vehicle is used in a manner that would qualify for
13the rolling stock exemption otherwise provided for in this
14Act. For purposes of this paragraph, the term "used for
15commercial purposes" means the transportation of persons or
16property in furtherance of any commercial or industrial
17enterprise, whether for-hire or not.
18    (34) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-90.
25    (35) Beginning January 1, 2010 and continuing through
26December 31, 2024, materials, parts, equipment, components,

 

 

SB2456- 17 -LRB102 16128 HLH 21504 b

1and furnishings incorporated into or upon an aircraft as part
2of the modification, refurbishment, completion, replacement,
3repair, or maintenance of the aircraft. This exemption
4includes consumable supplies used in the modification,
5refurbishment, completion, replacement, repair, and
6maintenance of aircraft, but excludes any materials, parts,
7equipment, components, and consumable supplies used in the
8modification, replacement, repair, and maintenance of aircraft
9engines or power plants, whether such engines or power plants
10are installed or uninstalled upon any such aircraft.
11"Consumable supplies" include, but are not limited to,
12adhesive, tape, sandpaper, general purpose lubricants,
13cleaning solution, latex gloves, and protective films. This
14exemption applies only to the use of qualifying tangible
15personal property by persons who modify, refurbish, complete,
16repair, replace, or maintain aircraft and who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part
24129 of the Federal Aviation Regulations. The changes made to
25this paragraph (35) by Public Act 98-534 are declarative of
26existing law. It is the intent of the General Assembly that the

 

 

SB2456- 18 -LRB102 16128 HLH 21504 b

1exemption under this paragraph (35) applies continuously from
2January 1, 2010 through December 31, 2024; however, no claim
3for credit or refund is allowed for taxes paid as a result of
4the disallowance of this exemption on or after January 1, 2015
5and prior to the effective date of this amendatory Act of the
6101st General Assembly.
7    (36) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-90.
22    (37) Beginning January 1, 2017, menstrual pads, tampons,
23and menstrual cups.
24    (38) Merchandise that is subject to the Rental Purchase
25Agreement Occupation and Use Tax. The purchaser must certify
26that the item is purchased to be rented subject to a rental

 

 

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1purchase agreement, as defined in the Rental Purchase
2Agreement Act, and provide proof of registration under the
3Rental Purchase Agreement Occupation and Use Tax Act. This
4paragraph is exempt from the provisions of Section 3-90.
5    (39) Tangible personal property purchased by a purchaser
6who is exempt from the tax imposed by this Act by operation of
7federal law. This paragraph is exempt from the provisions of
8Section 3-90.
9    (40) Qualified tangible personal property used in the
10construction or operation of a data center that has been
11granted a certificate of exemption by the Department of
12Commerce and Economic Opportunity, whether that tangible
13personal property is purchased by the owner, operator, or
14tenant of the data center or by a contractor or subcontractor
15of the owner, operator, or tenant. Data centers that would
16have qualified for a certificate of exemption prior to January
171, 2020 had Public Act 101-31 been in effect may apply for and
18obtain an exemption for subsequent purchases of computer
19equipment or enabling software purchased or leased to upgrade,
20supplement, or replace computer equipment or enabling software
21purchased or leased in the original investment that would have
22qualified.
23    The Department of Commerce and Economic Opportunity shall
24grant a certificate of exemption under this item (40) to
25qualified data centers as defined by Section 605-1025 of the
26Department of Commerce and Economic Opportunity Law of the

 

 

SB2456- 20 -LRB102 16128 HLH 21504 b

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

 

 

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1    data center. The term "qualified tangible personal
2    property" also includes building materials physically
3    incorporated in to the qualifying data center. To document
4    the exemption allowed under this Section, the retailer
5    must obtain from the purchaser a copy of the certificate
6    of eligibility issued by the Department of Commerce and
7    Economic Opportunity.
8    This item (40) is exempt from the provisions of Section
93-90.
10    (41) Beginning July 1, 2021, prescription medicines and
11medical devices (including, but not limited to, products
12classified as Class III medical devices by the United States
13Food and Drug Administration that are used for cancer
14treatment pursuant to a prescription, as well as any
15accessories and components related to those devices). This
16item (41) is exempt from the provisions of Section 3-90.
17(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;
18100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
191-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
207-12-19; 101-629, eff. 2-5-20.)
 
21    (35 ILCS 105/3-10)
22    Sec. 3-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24either the selling price or the fair market value, if any, of
25the tangible personal property. In all cases where property

 

 

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1functionally used or consumed is the same as the property that
2was purchased at retail, then the tax is imposed on the selling
3price of the property. In all cases where property
4functionally used or consumed is a by-product or waste product
5that has been refined, manufactured, or produced from property
6purchased at retail, then the tax is imposed on the lower of
7the fair market value, if any, of the specific property so used
8in this State or on the selling price of the property purchased
9at retail. For purposes of this Section "fair market value"
10means the price at which property would change hands between a
11willing buyer and a willing seller, neither being under any
12compulsion to buy or sell and both having reasonable knowledge
13of the relevant facts. The fair market value shall be
14established by Illinois sales by the taxpayer of the same
15property as that functionally used or consumed, or if there
16are no such sales by the taxpayer, then comparable sales or
17purchases of property of like kind and character in Illinois.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    Beginning on August 6, 2010 through August 15, 2010, with
23respect to sales tax holiday items as defined in Section 3-6 of
24this Act, the tax is imposed at the rate of 1.25%.
25    With respect to gasohol, the tax imposed by this Act
26applies to (i) 70% of the proceeds of sales made on or after

 

 

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1January 1, 1990, and before July 1, 2003, (ii) 80% of the
2proceeds of sales made on or after July 1, 2003 and on or
3before July 1, 2017, and (iii) 100% of the proceeds of sales
4made thereafter. If, at any time, however, the tax under this
5Act on sales of gasohol is imposed at the rate of 1.25%, then
6the tax imposed by this Act applies to 100% of the proceeds of
7sales of gasohol made during that time.
8    With respect to majority blended ethanol fuel, the tax
9imposed by this Act does not apply to the proceeds of sales
10made on or after July 1, 2003 and on or before December 31,
112023 but applies to 100% of the proceeds of sales made
12thereafter.
13    With respect to biodiesel blends with no less than 1% and
14no more than 10% biodiesel, the tax imposed by this Act applies
15to (i) 80% of the proceeds of sales made on or after July 1,
162003 and on or before December 31, 2018 and (ii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of biodiesel blends with no
19less than 1% and no more than 10% biodiesel is imposed at the
20rate of 1.25%, then the tax imposed by this Act applies to 100%
21of the proceeds of sales of biodiesel blends with no less than
221% and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel and biodiesel blends with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2023 but

 

 

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1applies to 100% of the proceeds of sales made thereafter.
2    With respect to food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption) and prescription and nonprescription
7medicines and , drugs, medical appliances that are not exempt
8under item (41) of Section 3-5, products classified as Class
9III medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to
11a prescription, as well as any accessories and components
12related to those devices, modifications to a motor vehicle for
13the purpose of rendering it usable by a person with a
14disability, and insulin, urine testing materials, syringes,
15and needles used by diabetics, for human use, the tax is
16imposed at the rate of 1%. For the purposes of this Section,
17until September 1, 2009: the term "soft drinks" means any
18complete, finished, ready-to-use, non-alcoholic drink, whether
19carbonated or not, including but not limited to soda water,
20cola, fruit juice, vegetable juice, carbonated water, and all
21other preparations commonly known as soft drinks of whatever
22kind or description that are contained in any closed or sealed
23bottle, can, carton, or container, regardless of size; but
24"soft drinks" does not include coffee, tea, non-carbonated
25water, infant formula, milk or milk products as defined in the
26Grade A Pasteurized Milk and Milk Products Act, or drinks

 

 

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

 

 

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

 

 

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1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4    If the property that is purchased at retail from a
5retailer is acquired outside Illinois and used outside
6Illinois before being brought to Illinois for use here and is
7taxable under this Act, the "selling price" on which the tax is
8computed shall be reduced by an amount that represents a
9reasonable allowance for depreciation for the period of prior
10out-of-state use.
11(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
12101-593, eff. 12-4-19.)
 
13    Section 10. The Service Use Tax Act is amended by changing
14Sections 3-5 and 3-10 as follows:
 
15    (35 ILCS 110/3-5)
16    Sec. 3-5. Exemptions. Use of the following tangible
17personal property is exempt from the tax imposed by this Act:
18    (1) Personal property purchased from a corporation,
19society, association, foundation, institution, or
20organization, other than a limited liability company, that is
21organized and operated as a not-for-profit service enterprise
22for the benefit of persons 65 years of age or older if the
23personal property was not purchased by the enterprise for the
24purpose of resale by the enterprise.

 

 

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1    (2) Personal property purchased by a non-profit Illinois
2county fair association for use in conducting, operating, or
3promoting the county fair.
4    (3) Personal property purchased by a not-for-profit arts
5or cultural organization that establishes, by proof required
6by the Department by rule, that it has received an exemption
7under Section 501(c)(3) of the Internal Revenue Code and that
8is organized and operated primarily for the presentation or
9support of arts or cultural programming, activities, or
10services. These organizations include, but are not limited to,
11music and dramatic arts organizations such as symphony
12orchestras and theatrical groups, arts and cultural service
13organizations, local arts councils, visual arts organizations,
14and media arts organizations. On and after July 1, 2001 (the
15effective date of Public Act 92-35), however, an entity
16otherwise eligible for this exemption shall not make tax-free
17purchases unless it has an active identification number issued
18by the Department.
19    (4) Legal tender, currency, medallions, or gold or silver
20coinage issued by the State of Illinois, the government of the
21United States of America, or the government of any foreign
22country, and bullion.
23    (5) Until July 1, 2003 and beginning again on September 1,
242004 through August 30, 2014, graphic arts machinery and
25equipment, including repair and replacement parts, both new
26and used, and including that manufactured on special order or

 

 

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

 

 

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

 

 

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

 

 

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1exploration, drilling, and production equipment, and (vi)
2machinery and equipment purchased for lease; but excluding
3motor vehicles required to be registered under the Illinois
4Vehicle Code.
5    (11) Proceeds from the sale of photoprocessing machinery
6and equipment, including repair and replacement parts, both
7new and used, including that manufactured on special order,
8certified by the purchaser to be used primarily for
9photoprocessing, and including photoprocessing machinery and
10equipment purchased for lease.
11    (12) Until July 1, 2023, coal and aggregate exploration,
12mining, off-highway hauling, processing, maintenance, and
13reclamation equipment, including replacement parts and
14equipment, and including equipment purchased for lease, but
15excluding motor vehicles required to be registered under the
16Illinois Vehicle Code. The changes made to this Section by
17Public Act 97-767 apply on and after July 1, 2003, but no claim
18for credit or refund is allowed on or after August 16, 2013
19(the effective date of Public Act 98-456) for such taxes paid
20during the period beginning July 1, 2003 and ending on August
2116, 2013 (the effective date of Public Act 98-456).
22    (13) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (14) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

 

 

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1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (14) is exempt from the
4provisions of Section 3-75, and the exemption provided for
5under this item (14) applies for all periods beginning May 30,
61995, but no claim for credit or refund is allowed on or after
7January 1, 2008 (the effective date of Public Act 95-88) for
8such taxes paid during the period beginning May 30, 2000 and
9ending on January 1, 2008 (the effective date of Public Act
1095-88).
11    (15) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients purchased by a
14lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time the lessor would
16otherwise be subject to the tax imposed by this Act, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. If the equipment is leased
20in a manner that does not qualify for this exemption or is used
21in any other non-exempt manner, the lessor shall be liable for
22the tax imposed under this Act or the Use Tax Act, as the case
23may be, based on the fair market value of the property at the
24time the non-qualifying use occurs. No lessor shall collect or
25attempt to collect an amount (however designated) that
26purports to reimburse that lessor for the tax imposed by this

 

 

SB2456- 34 -LRB102 16128 HLH 21504 b

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

 

 

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1is liable to pay that amount to the Department.
2    (17) 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 donated
5for disaster relief to be used in a State or federally declared
6disaster area in Illinois or bordering Illinois by a
7manufacturer or retailer that is registered in this State to a
8corporation, society, association, foundation, or institution
9that has been issued a sales tax exemption identification
10number by the Department that assists victims of the disaster
11who reside within the declared disaster area.
12    (18) Beginning with taxable years ending on or after
13December 31, 1995 and ending with taxable years ending on or
14before December 31, 2004, personal property that is used in
15the performance of infrastructure repairs in this State,
16including but not limited to municipal roads and streets,
17access roads, bridges, sidewalks, waste disposal systems,
18water and sewer line extensions, water distribution and
19purification facilities, storm water drainage and retention
20facilities, and sewage treatment facilities, resulting from a
21State or federally declared disaster in Illinois or bordering
22Illinois when such repairs are initiated on facilities located
23in the declared disaster area within 6 months after the
24disaster.
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
7Department to be organized and operated exclusively for
8educational purposes. For purposes of this exemption, "a
9corporation, limited liability company, society, association,
10foundation, or institution organized and operated exclusively
11for educational purposes" means all tax-supported public
12schools, private schools that offer systematic instruction in
13useful branches of learning by methods common to public
14schools and that compare favorably in their scope and
15intensity with the course of study presented in tax-supported
16schools, and vocational or technical schools or institutes
17organized and operated exclusively to provide a course of
18study of not less than 6 weeks duration and designed to prepare
19individuals to follow a trade or to pursue a manual,
20technical, mechanical, industrial, business, or commercial
21occupation.
22    (21) Beginning January 1, 2000, personal property,
23including food, purchased through fundraising events for the
24benefit of a public or private elementary or secondary school,
25a group of those schools, or one or more school districts if
26the events are sponsored by an entity recognized by the school

 

 

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1district that consists primarily of volunteers and includes
2parents and teachers of the school children. This paragraph
3does not apply to fundraising events (i) for the benefit of
4private home instruction or (ii) for which the fundraising
5entity purchases the personal property sold at the events from
6another individual or entity that sold the property for the
7purpose of resale by the fundraising entity and that profits
8from the sale to the fundraising entity. This paragraph is
9exempt from the provisions of Section 3-75.
10    (22) Beginning January 1, 2000 and through December 31,
112001, new or used automatic vending machines that prepare and
12serve hot food and beverages, including coffee, soup, and
13other items, and replacement parts for these machines.
14Beginning January 1, 2002 and through June 30, 2003, machines
15and parts for machines used in commercial, coin-operated
16amusement and vending business if a use or occupation tax is
17paid on the gross receipts derived from the use of the
18commercial, coin-operated amusement and vending machines. This
19paragraph is exempt from the provisions of Section 3-75.
20    (23) Beginning August 23, 2001 and through June 30, 2016,
21food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages,
23soft drinks, and food that has been prepared for immediate
24consumption) and prescription and nonprescription medicines,
25drugs, medical appliances, and insulin, urine testing
26materials, syringes, and needles used by diabetics, for human

 

 

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

 

 

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

 

 

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

 

 

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1of aircraft by persons who (i) hold an Air Agency Certificate
2and are empowered to operate an approved repair station by the
3Federal Aviation Administration, (ii) have a Class IV Rating,
4and (iii) conduct operations in accordance with Part 145 of
5the Federal Aviation Regulations. The exemption does not
6include aircraft operated by a commercial air carrier
7providing scheduled passenger air service pursuant to
8authority issued under Part 121 or Part 129 of the Federal
9Aviation Regulations. The changes made to this paragraph (27)
10by Public Act 98-534 are declarative of existing law. It is the
11intent of the General Assembly that the exemption under this
12paragraph (27) applies continuously from January 1, 2010
13through December 31, 2024; however, no claim for credit or
14refund is allowed for taxes paid as a result of the
15disallowance of this exemption on or after January 1, 2015 and
16prior to the effective date of this amendatory Act of the 101st
17General Assembly.
18    (28) Tangible personal property purchased by a
19public-facilities corporation, as described in Section
2011-65-10 of the Illinois Municipal Code, for purposes of
21constructing or furnishing a municipal convention hall, but
22only if the legal title to the municipal convention hall is
23transferred to the municipality without any further
24consideration by or on behalf of the municipality at the time
25of the completion of the municipal convention hall or upon the
26retirement or redemption of any bonds or other debt

 

 

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1instruments issued by the public-facilities corporation in
2connection with the development of the municipal convention
3hall. This exemption includes existing public-facilities
4corporations as provided in Section 11-65-25 of the Illinois
5Municipal Code. This paragraph is exempt from the provisions
6of Section 3-75.
7    (29) Beginning January 1, 2017, menstrual pads, tampons,
8and menstrual cups.
9    (30) Tangible personal property transferred to a purchaser
10who is exempt from the tax imposed by this Act by operation of
11federal law. This paragraph is exempt from the provisions of
12Section 3-75.
13    (31) Qualified tangible personal property used in the
14construction or operation of a data center that has been
15granted a certificate of exemption by the Department of
16Commerce and Economic Opportunity, whether that tangible
17personal property is purchased by the owner, operator, or
18tenant of the data center or by a contractor or subcontractor
19of the owner, operator, or tenant. Data centers that would
20have qualified for a certificate of exemption prior to January
211, 2020 had this amendatory Act of the 101st General Assembly
22been in effect, may apply for and obtain an exemption for
23subsequent purchases of computer equipment or enabling
24software purchased or leased to upgrade, supplement, or
25replace computer equipment or enabling software purchased or
26leased in the original investment that would have qualified.

 

 

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

 

 

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1    generate, transform, transmit, distribute, or manage
2    electricity necessary to operate qualified tangible
3    personal property; and all other tangible personal
4    property that is essential to the operations of a computer
5    data center. The term "qualified tangible personal
6    property" also includes building materials physically
7    incorporated in to the qualifying data center. To document
8    the exemption allowed under this Section, the retailer
9    must obtain from the purchaser a copy of the certificate
10    of eligibility issued by the Department of Commerce and
11    Economic Opportunity.
12    This item (31) is exempt from the provisions of Section
133-75.
14    (32) Beginning July 1, 2021, prescription medicines and
15medical devices (including, but not limited to, products
16classified as Class III medical devices by the United States
17Food and Drug Administration that are used for cancer
18treatment pursuant to a prescription, as well as any
19accessories and components related to those devices). This
20item (32) is exempt from the provisions of Section 3-75.
21(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
22100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
237-12-19; 101-629, eff. 2-5-20.)
 
24    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
25    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

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1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred as
3an incident to the sale of service, but, for the purpose of
4computing this tax, in no event shall the selling price be less
5than the cost price of the property to the serviceman.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the selling price
12of property transferred as an incident to the sale of service
13on or after January 1, 1990, and before July 1, 2003, (ii) 80%
14of the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16July 1, 2017, and (iii) 100% of the selling price thereafter.
17If, at any time, however, the tax under this Act on sales of
18gasohol, as defined in the Use Tax Act, is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the selling price of property transferred as an incident to
24the sale of service on or after July 1, 2003 and on or before
25December 31, 2023 but applies to 100% of the selling price
26thereafter.

 

 

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1    With respect to biodiesel blends, as defined in the Use
2Tax Act, with no less than 1% and no more than 10% biodiesel,
3the tax imposed by this Act applies to (i) 80% of the selling
4price of property transferred as an incident to the sale of
5service on or after July 1, 2003 and on or before December 31,
62018 and (ii) 100% of the proceeds of the selling price
7thereafter. If, at any time, however, the tax under this Act on
8sales of biodiesel blends, as defined in the Use Tax Act, with
9no less than 1% and no more than 10% biodiesel is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of biodiesel blends with no less
12than 1% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of the selling price
17of property transferred as an incident to the sale of service
18on or after July 1, 2003 and on or before December 31, 2023 but
19applies to 100% of the selling price thereafter.
20    At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the
26aggregate annual total gross receipts from all sales of

 

 

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1service, the tax imposed by this Act shall be based on the
2serviceman's cost price of the tangible personal property
3transferred as an incident to the sale of those services.
4    The tax shall be imposed at the rate of 1% on food prepared
5for immediate consumption and transferred incident to a sale
6of service subject to this Act or the Service Occupation Tax
7Act by an entity licensed under the Hospital Licensing Act,
8the Nursing Home Care Act, the ID/DD Community Care Act, the
9MC/DD Act, the Specialized Mental Health Rehabilitation Act of
102013, or the Child Care Act of 1969. The tax shall also be
11imposed at the rate of 1% on food for human consumption that is
12to be consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption and is not otherwise included in this
16paragraph) and prescription and nonprescription medicines and
17, drugs, medical appliances that are not exempt under item
18(32) of Section 3-5, products classified as Class III medical
19devices by the United States Food and Drug Administration that
20are used for cancer treatment pursuant to a prescription, as
21well as any accessories and components related to those
22devices, modifications to a motor vehicle for the purpose of
23rendering it usable by a person with a disability, and
24insulin, urine testing materials, syringes, and needles used
25by diabetics, for human use. For the purposes of this Section,
26until September 1, 2009: the term "soft drinks" means any

 

 

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

 

 

SB2456- 49 -LRB102 16128 HLH 21504 b

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

 

 

SB2456- 50 -LRB102 16128 HLH 21504 b

1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on January 1, 2014 (the effective date of Public
4Act 98-122), "prescription and nonprescription medicines and
5drugs" includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    If the property that is acquired from a serviceman is
14acquired outside Illinois and used outside Illinois before
15being brought to Illinois for use here and is taxable under
16this Act, the "selling price" on which the tax is computed
17shall be reduced by an amount that represents a reasonable
18allowance for depreciation for the period of prior
19out-of-state use.
20(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
21101-593, eff. 12-4-19.)
 
22    Section 15. The Service Occupation Tax Act is amended by
23changing Sections 3-5 and 3-10 as follows:
 
24    (35 ILCS 115/3-5)

 

 

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

 

 

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1by the Department.
2    (4) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6    (5) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new
9and used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product. Beginning on
15July 1, 2017, graphic arts machinery and equipment is included
16in the manufacturing and assembling machinery and equipment
17exemption under Section 2 of this Act.
18    (6) Personal property sold by a teacher-sponsored student
19organization affiliated with an elementary or secondary school
20located in Illinois.
21    (7) Farm machinery and equipment, both new and used,
22including that manufactured on special order, certified by the
23purchaser to be used primarily for production agriculture or
24State or federal agricultural programs, including individual
25replacement parts for the machinery and equipment, including
26machinery and equipment purchased for lease, and including

 

 

SB2456- 53 -LRB102 16128 HLH 21504 b

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

 

 

SB2456- 54 -LRB102 16128 HLH 21504 b

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

 

 

SB2456- 55 -LRB102 16128 HLH 21504 b

1beverage function with respect to which the service charge is
2imposed.
3    (10) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of
5rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
6pipe and tubular goods, including casing and drill strings,
7(iii) pumps and pump-jack units, (iv) storage tanks and flow
8lines, (v) any individual replacement part for oil field
9exploration, drilling, and production equipment, and (vi)
10machinery and equipment purchased for lease; but excluding
11motor vehicles required to be registered under the Illinois
12Vehicle Code.
13    (11) Photoprocessing machinery and equipment, including
14repair and replacement parts, both new and used, including
15that manufactured on special order, certified by the purchaser
16to be used 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

 

 

SB2456- 56 -LRB102 16128 HLH 21504 b

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,
6soft drinks 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
24provisions of Section 3-55, and the exemption provided for
25under this item (15) applies for all periods beginning May 30,
261995, but no claim for credit or refund is allowed on or after

 

 

SB2456- 57 -LRB102 16128 HLH 21504 b

1January 1, 2008 (the effective date of Public Act 95-88) for
2such taxes paid during the period beginning May 30, 2000 and
3ending on January 1, 2008 (the effective date of Public Act
495-88).
5    (16) Computers and communications equipment utilized for
6any hospital purpose and equipment used in the diagnosis,
7analysis, or treatment of hospital patients sold to a lessor
8who leases the equipment, under a lease of one year or longer
9executed or in effect at the time of the purchase, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act.
13    (17) Personal property sold to a lessor who leases the
14property, under a lease of one year or longer executed or in
15effect at the time of the purchase, to a governmental body that
16has been issued an active tax exemption identification number
17by the Department under Section 1g of the Retailers'
18Occupation Tax Act.
19    (18) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated
22for disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

SB2456- 58 -LRB102 16128 HLH 21504 b

1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (19) 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 used in
6the performance of infrastructure repairs in this State,
7including but not limited to municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (20) Beginning July 1, 1999, game or game birds sold at a
17"game breeding and hunting preserve area" as that term is used
18in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-55.
20    (21) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

SB2456- 59 -LRB102 16128 HLH 21504 b

1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (22) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-55.

 

 

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1    (23) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-55.
11    (24) Beginning on August 2, 2001 (the effective date of
12Public Act 92-227), computers and communications equipment
13utilized for any hospital purpose and equipment used in the
14diagnosis, analysis, or treatment of hospital patients sold to
15a lessor who leases the equipment, under a lease of one year or
16longer executed or in effect at the time of the purchase, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. This paragraph is exempt
20from the provisions of Section 3-55.
21    (25) Beginning on August 2, 2001 (the effective date of
22Public Act 92-227), personal property sold to a lessor who
23leases the property, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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1the Retailers' Occupation Tax Act. This paragraph is exempt
2from the provisions of Section 3-55.
3    (26) Beginning on January 1, 2002 and through June 30,
42016, tangible personal property purchased from an Illinois
5retailer by a taxpayer engaged in centralized purchasing
6activities in Illinois who will, upon receipt of the property
7in Illinois, temporarily store the property in Illinois (i)
8for the purpose of subsequently transporting it outside this
9State for use or consumption thereafter solely outside this
10State or (ii) for the purpose of being processed, fabricated,
11or manufactured into, attached to, or incorporated into other
12tangible personal property to be transported outside this
13State and thereafter used or consumed solely outside this
14State. The Director of Revenue shall, pursuant to rules
15adopted in accordance with the Illinois Administrative
16Procedure Act, issue a permit to any taxpayer in good standing
17with the Department who is eligible for the exemption under
18this paragraph (26). The permit issued under this paragraph
19(26) shall authorize the holder, to the extent and in the
20manner specified in the rules adopted under this Act, to
21purchase tangible personal property from a retailer exempt
22from the taxes imposed by this Act. Taxpayers shall maintain
23all necessary books and records to substantiate the use and
24consumption of all such tangible personal property outside of
25the State of Illinois.
26    (27) 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
5under Title IV of the Environmental Protection Act. This
6paragraph is exempt from the provisions of Section 3-55.
7    (28) Tangible personal property sold to a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-55.
22    (29) Beginning January 1, 2010 and continuing through
23December 31, 2024, materials, parts, equipment, components,
24and furnishings incorporated into or upon an aircraft as part
25of the modification, refurbishment, completion, replacement,
26repair, or maintenance of the aircraft. This exemption

 

 

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1includes consumable supplies used in the modification,
2refurbishment, completion, replacement, repair, and
3maintenance of aircraft, but excludes any materials, parts,
4equipment, components, and consumable supplies used in the
5modification, replacement, repair, and maintenance of aircraft
6engines or power plants, whether such engines or power plants
7are installed or uninstalled upon any such aircraft.
8"Consumable supplies" include, but are not limited to,
9adhesive, tape, sandpaper, general purpose lubricants,
10cleaning solution, latex gloves, and protective films. This
11exemption applies only to the transfer of qualifying tangible
12personal property incident to the modification, refurbishment,
13completion, replacement, repair, or maintenance of an aircraft
14by persons who (i) hold an Air Agency Certificate and are
15empowered to operate an approved repair station by the Federal
16Aviation Administration, (ii) have a Class IV Rating, and
17(iii) conduct operations in accordance with Part 145 of the
18Federal Aviation Regulations. The exemption does not include
19aircraft operated by a commercial air carrier providing
20scheduled passenger air service pursuant to authority issued
21under Part 121 or Part 129 of the Federal Aviation
22Regulations. The changes made to this paragraph (29) by Public
23Act 98-534 are declarative of existing law. It is the intent of
24the General Assembly that the exemption under this paragraph
25(29) applies continuously from January 1, 2010 through
26December 31, 2024; however, no claim for credit or refund is

 

 

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1allowed for taxes paid as a result of the disallowance of this
2exemption on or after January 1, 2015 and prior to the
3effective date of this amendatory Act of the 101st General
4Assembly.
5    (30) Beginning January 1, 2017, menstrual pads, tampons,
6and menstrual cups.
7    (31) Tangible personal property transferred to a purchaser
8who is exempt from tax by operation of federal law. This
9paragraph is exempt from the provisions of Section 3-55.
10    (32) Qualified tangible personal property used in the
11construction or operation of a data center that has been
12granted a certificate of exemption by the Department of
13Commerce and Economic Opportunity, whether that tangible
14personal property is purchased by the owner, operator, or
15tenant of the data center or by a contractor or subcontractor
16of the owner, operator, or tenant. Data centers that would
17have qualified for a certificate of exemption prior to January
181, 2020 had this amendatory Act of the 101st General Assembly
19been in effect, may apply for and obtain an exemption for
20subsequent purchases of computer equipment or enabling
21software purchased or leased to upgrade, supplement, or
22replace computer equipment or enabling software purchased or
23leased in the original investment that would have qualified.
24    The Department of Commerce and Economic Opportunity shall
25grant a certificate of exemption under this item (32) to
26qualified data centers as defined by Section 605-1025 of the

 

 

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

 

 

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1    property that is essential to the operations of a computer
2    data center. The term "qualified tangible personal
3    property" also includes building materials physically
4    incorporated in to the qualifying data center. To document
5    the exemption allowed under this Section, the retailer
6    must obtain from the purchaser a copy of the certificate
7    of eligibility issued by the Department of Commerce and
8    Economic Opportunity.
9    This item (32) is exempt from the provisions of Section
103-55.
11    (33) Beginning July 1, 2021, prescription medicines and
12medical devices (including, but not limited to, products
13classified as Class III medical devices by the United States
14Food and Drug Administration that are used for cancer
15treatment pursuant to a prescription, as well as any
16accessories and components related to those devices). This
17item (33) is exempt from the provisions of Section 3-55.
18(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
19100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
207-12-19; 101-629, eff. 2-5-20.)
 
21    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
22    Sec. 3-10. Rate of tax. Unless otherwise provided in this
23Section, the tax imposed by this Act is at the rate of 6.25% of
24the "selling price", as defined in Section 2 of the Service Use
25Tax Act, of the tangible personal property. For the purpose of

 

 

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1computing this tax, in no event shall the "selling price" be
2less than the cost price to the serviceman of the tangible
3personal property transferred. The selling price of each item
4of tangible personal property transferred as an incident of a
5sale of service may be shown as a distinct and separate item on
6the serviceman's billing to the service customer. If the
7selling price is not so shown, the selling price of the
8tangible personal property is deemed to be 50% of the
9serviceman's entire billing to the service customer. When,
10however, a serviceman contracts to design, develop, and
11produce special order machinery or equipment, the tax imposed
12by this Act shall be based on the serviceman's cost price of
13the tangible personal property transferred incident to the
14completion of the contract.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act shall apply to (i) 70% of the cost
21price of property transferred as an incident to the sale of
22service on or after January 1, 1990, and before July 1, 2003,
23(ii) 80% of the selling price of property transferred as an
24incident to the sale of service on or after July 1, 2003 and on
25or before July 1, 2017, and (iii) 100% of the cost price
26thereafter. If, at any time, however, the tax under this Act on

 

 

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1sales of gasohol, as defined in the Use Tax Act, is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2023 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the selling
13price of property transferred as an incident to the sale of
14service on or after July 1, 2003 and on or before December 31,
152018 and (ii) 100% of the proceeds of the selling price
16thereafter. If, at any time, however, the tax under this Act on
17sales of biodiesel blends, as defined in the Use Tax Act, with
18no less than 1% and no more than 10% biodiesel is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of biodiesel blends with no less
21than 1% and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel material, the tax
25imposed by this Act does not apply to the proceeds of the
26selling price of property transferred as an incident to the

 

 

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1sale of service on or after July 1, 2003 and on or before
2December 31, 2023 but applies to 100% of the selling price
3thereafter.
4    At the election of any registered serviceman made for each
5fiscal year, sales of service in which the aggregate annual
6cost price of tangible personal property transferred as an
7incident to the sales of service is less than 35%, or 75% in
8the case of servicemen transferring prescription drugs or
9servicemen engaged in graphic arts production, of the
10aggregate annual total gross receipts from all sales of
11service, the tax imposed by this Act shall be based on the
12serviceman's cost price of the tangible personal property
13transferred incident to the sale of those services.
14    The tax shall be imposed at the rate of 1% on food prepared
15for immediate consumption and transferred incident to a sale
16of service subject to this Act or the Service Occupation Tax
17Act by an entity licensed under the Hospital Licensing Act,
18the Nursing Home Care Act, the ID/DD Community Care Act, the
19MC/DD Act, the Specialized Mental Health Rehabilitation Act of
202013, or the Child Care Act of 1969. The tax shall also be
21imposed at the rate of 1% on food for human consumption that is
22to be consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph) and prescription and nonprescription medicines and

 

 

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1, drugs, medical appliances that are not exempt under item
2(33) of Section 3-5, products classified as Class III medical
3devices by the United States Food and Drug Administration that
4are used for cancer treatment pursuant to a prescription, as
5well as any accessories and components related to those
6devices, modifications to a motor vehicle for the purpose of
7rendering it usable by a person with a disability, and
8insulin, urine testing materials, syringes, and needles used
9by diabetics, for human use. For the purposes of this Section,
10until September 1, 2009: the term "soft drinks" means any
11complete, finished, ready-to-use, non-alcoholic drink, whether
12carbonated or not, including but not limited to soda water,
13cola, fruit juice, vegetable juice, carbonated water, and all
14other preparations commonly known as soft drinks of whatever
15kind or description that are contained in any closed or sealed
16can, carton, or container, regardless of size; but "soft
17drinks" does not include coffee, tea, non-carbonated water,
18infant formula, milk or milk products as defined in the Grade A
19Pasteurized Milk and Milk Products Act, or drinks containing
2050% or more natural fruit or vegetable juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

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

 

 

SB2456- 72 -LRB102 16128 HLH 21504 b

1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
24101-593, eff. 12-4-19.)
 
25    Section 20. The Retailers' Occupation Tax Act is amended

 

 

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1by changing Sections 2-5 and 2-10 as follows:
 
2    (35 ILCS 120/2-5)
3    Sec. 2-5. Exemptions. Gross receipts from proceeds from
4the sale of the following tangible personal property are
5exempt from the tax imposed by this Act:
6        (1) Farm chemicals.
7        (2) Farm machinery and equipment, both new and used,
8    including that manufactured on special order, certified by
9    the purchaser to be used primarily for production
10    agriculture or State or federal agricultural programs,
11    including individual replacement parts for the machinery
12    and equipment, including machinery and equipment purchased
13    for lease, and including implements of husbandry defined
14    in Section 1-130 of the Illinois Vehicle Code, farm
15    machinery and agricultural chemical and fertilizer
16    spreaders, and nurse wagons required to be registered
17    under Section 3-809 of the Illinois Vehicle Code, but
18    excluding other motor vehicles required to be registered
19    under the Illinois Vehicle Code. Horticultural polyhouses
20    or hoop houses used for propagating, growing, or
21    overwintering plants shall be considered farm machinery
22    and equipment under this item (2). Agricultural chemical
23    tender tanks and dry boxes shall include units sold
24    separately from a motor vehicle required to be licensed
25    and units sold mounted on a motor vehicle required to be

 

 

SB2456- 74 -LRB102 16128 HLH 21504 b

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

 

 

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

 

 

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

 

 

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1    foundation, institution, or organization that has no
2    compensated officers or employees and that is organized
3    and operated primarily for the recreation of persons 55
4    years of age or older. A limited liability company may
5    qualify for the exemption under this paragraph only if the
6    limited liability company is organized and operated
7    exclusively for educational purposes. On and after July 1,
8    1987, however, no entity otherwise eligible for this
9    exemption shall make tax-free purchases unless it has an
10    active identification number issued by the Department.
11        (12) (Blank).
12        (12-5) On and after July 1, 2003 and through June 30,
13    2004, motor vehicles of the second division with a gross
14    vehicle weight in excess of 8,000 pounds that are subject
15    to the commercial distribution fee imposed under Section
16    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
17    2004 and through June 30, 2005, the use in this State of
18    motor vehicles of the second division: (i) with a gross
19    vehicle weight rating in excess of 8,000 pounds; (ii) that
20    are subject to the commercial distribution fee imposed
21    under Section 3-815.1 of the Illinois Vehicle Code; and
22    (iii) that are primarily used for commercial purposes.
23    Through June 30, 2005, this exemption applies to repair
24    and replacement parts added after the initial purchase of
25    such a motor vehicle if that motor vehicle is used in a
26    manner that would qualify for the rolling stock exemption

 

 

SB2456- 78 -LRB102 16128 HLH 21504 b

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

 

 

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

 

 

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

 

 

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1    purchased for lease.
2        (21) Until July 1, 2023, coal and aggregate
3    exploration, mining, off-highway hauling, processing,
4    maintenance, and reclamation equipment, including
5    replacement parts and equipment, and including equipment
6    purchased for lease, but excluding motor vehicles required
7    to be registered under the Illinois Vehicle Code. The
8    changes made to this Section by Public Act 97-767 apply on
9    and after July 1, 2003, but no claim for credit or refund
10    is allowed on or after August 16, 2013 (the effective date
11    of Public Act 98-456) for such taxes paid during the
12    period beginning July 1, 2003 and ending on August 16,
13    2013 (the effective date of Public Act 98-456).
14        (22) Until June 30, 2013, fuel and petroleum products
15    sold to or used by an air carrier, certified by the carrier
16    to be used for consumption, shipment, or storage in the
17    conduct of its business as an air common carrier, for a
18    flight destined for or returning from a location or
19    locations outside the United States without regard to
20    previous or subsequent domestic stopovers.
21        Beginning July 1, 2013, fuel and petroleum products
22    sold to or used by an air carrier, certified by the carrier
23    to be used for consumption, shipment, or storage in the
24    conduct of its business as an air common carrier, for a
25    flight that (i) is engaged in foreign trade or is engaged
26    in trade between the United States and any of its

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    provisions of Section 2-70.
2        (40) Beginning January 1, 2010 and continuing through
3    December 31, 2024, materials, parts, equipment,
4    components, and furnishings incorporated into or upon an
5    aircraft as part of the modification, refurbishment,
6    completion, replacement, repair, or maintenance of the
7    aircraft. This exemption includes consumable supplies used
8    in the modification, refurbishment, completion,
9    replacement, repair, and maintenance of aircraft, but
10    excludes any materials, parts, equipment, components, and
11    consumable supplies used in the modification, replacement,
12    repair, and maintenance of aircraft engines or power
13    plants, whether such engines or power plants are installed
14    or uninstalled upon any such aircraft. "Consumable
15    supplies" include, but are not limited to, adhesive, tape,
16    sandpaper, general purpose lubricants, cleaning solution,
17    latex gloves, and protective films. This exemption applies
18    only to the sale of qualifying tangible personal property
19    to persons who modify, refurbish, complete, replace, or
20    maintain an aircraft and who (i) hold an Air Agency
21    Certificate and are empowered to operate an approved
22    repair station by the Federal Aviation Administration,
23    (ii) have a Class IV Rating, and (iii) conduct operations
24    in accordance with Part 145 of the Federal Aviation
25    Regulations. The exemption does not include aircraft
26    operated by a commercial air carrier providing scheduled

 

 

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1    passenger air service pursuant to authority issued under
2    Part 121 or Part 129 of the Federal Aviation Regulations.
3    The changes made to this paragraph (40) by Public Act
4    98-534 are declarative of existing law. It is the intent
5    of the General Assembly that the exemption under this
6    paragraph (40) applies continuously from January 1, 2010
7    through December 31, 2024; however, no claim for credit or
8    refund is allowed for taxes paid as a result of the
9    disallowance of this exemption on or after January 1, 2015
10    and prior to the effective date of this amendatory Act of
11    the 101st General Assembly.
12        (41) Tangible personal property sold to a
13    public-facilities corporation, as described in Section
14    11-65-10 of the Illinois Municipal Code, for purposes of
15    constructing or furnishing a municipal convention hall,
16    but only if the legal title to the municipal convention
17    hall is transferred to the municipality without any
18    further consideration by or on behalf of the municipality
19    at the time of the completion of the municipal convention
20    hall or upon the retirement or redemption of any bonds or
21    other debt instruments issued by the public-facilities
22    corporation in connection with the development of the
23    municipal convention hall. This exemption includes
24    existing public-facilities corporations as provided in
25    Section 11-65-25 of the Illinois Municipal Code. This
26    paragraph is exempt from the provisions of Section 2-70.

 

 

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1        (42) Beginning January 1, 2017, menstrual pads,
2    tampons, and menstrual cups.
3        (43) Merchandise that is subject to the Rental
4    Purchase Agreement Occupation and Use Tax. The purchaser
5    must certify that the item is purchased to be rented
6    subject to a rental purchase agreement, as defined in the
7    Rental Purchase Agreement Act, and provide proof of
8    registration under the Rental Purchase Agreement
9    Occupation and Use Tax Act. This paragraph is exempt from
10    the provisions of Section 2-70.
11        (44) Qualified tangible personal property used in the
12    construction or operation of a data center that has been
13    granted a certificate of exemption by the Department of
14    Commerce and Economic Opportunity, whether that tangible
15    personal property is purchased by the owner, operator, or
16    tenant of the data center or by a contractor or
17    subcontractor of the owner, operator, or tenant. Data
18    centers that would have qualified for a certificate of
19    exemption prior to January 1, 2020 had this amendatory Act
20    of the 101st General Assembly been in effect, may apply
21    for and obtain an exemption for subsequent purchases of
22    computer equipment or enabling software purchased or
23    leased to upgrade, supplement, or replace computer
24    equipment or enabling software purchased or leased in the
25    original investment that would have qualified.
26        The Department of Commerce and Economic Opportunity

 

 

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1    shall grant a certificate of exemption under this item
2    (44) to qualified data centers as defined by Section
3    605-1025 of the Department of Commerce and Economic
4    Opportunity Law of the Civil Administrative Code of
5    Illinois.
6        For the purposes of this item (44):
7            "Data center" means a building or a series of
8        buildings rehabilitated or constructed to house
9        working servers in one physical location or multiple
10        sites within the State of Illinois.
11            "Qualified tangible personal property" means:
12        electrical systems and equipment; climate control and
13        chilling equipment and systems; mechanical systems and
14        equipment; monitoring and secure systems; emergency
15        generators; hardware; computers; servers; data storage
16        devices; network connectivity equipment; racks;
17        cabinets; telecommunications cabling infrastructure;
18        raised floor systems; peripheral components or
19        systems; software; mechanical, electrical, or plumbing
20        systems; battery systems; cooling systems and towers;
21        temperature control systems; other cabling; and other
22        data center infrastructure equipment and systems
23        necessary to operate qualified tangible personal
24        property, including fixtures; and component parts of
25        any of the foregoing, including installation,
26        maintenance, repair, refurbishment, and replacement of

 

 

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1        qualified tangible personal property to generate,
2        transform, transmit, distribute, or manage electricity
3        necessary to operate qualified tangible personal
4        property; and all other tangible personal property
5        that is essential to the operations of a computer data
6        center. The term "qualified tangible personal
7        property" also includes building materials physically
8        incorporated in to the qualifying data center. To
9        document the exemption allowed under this Section, the
10        retailer must obtain from the purchaser a copy of the
11        certificate of eligibility issued by the Department of
12        Commerce and Economic Opportunity.
13        This item (44) is exempt from the provisions of
14    Section 2-70.
15        (45) Beginning July 1, 2021, prescription medicines
16    and medical devices (including, but not limited to,
17    products classified as Class III medical devices by the
18    United States Food and Drug Administration that are used
19    for cancer treatment pursuant to a prescription, as well
20    as any accessories and components related to those
21    devices). This item (45) is exempt from the provisions of
22    Section 2-70.
23(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
24100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
258-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
26eff. 7-12-19; 101-629, eff. 2-5-20.)
 

 

 

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1    (35 ILCS 120/2-10)
2    Sec. 2-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4gross receipts from sales of tangible personal property made
5in the course of business.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    Beginning on August 6, 2010 through August 15, 2010, with
11respect to sales tax holiday items as defined in Section 2-8 of
12this Act, the tax is imposed at the rate of 1.25%.
13    Within 14 days after the effective date of this amendatory
14Act of the 91st General Assembly, each retailer of motor fuel
15and gasohol shall cause the following notice to be posted in a
16prominently visible place on each retail dispensing device
17that is used to dispense motor fuel or gasohol in the State of
18Illinois: "As of July 1, 2000, the State of Illinois has
19eliminated the State's share of sales tax on motor fuel and
20gasohol through December 31, 2000. The price on this pump
21should reflect the elimination of the tax." The notice shall
22be printed in bold print on a sign that is no smaller than 4
23inches by 8 inches. The sign shall be clearly visible to
24customers. Any retailer who fails to post or maintain a
25required sign through December 31, 2000 is guilty of a petty

 

 

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1offense for which the fine shall be $500 per day per each
2retail premises where a violation occurs.
3    With respect to gasohol, as defined in the Use Tax Act, the
4tax imposed by this Act applies to (i) 70% of the proceeds of
5sales made on or after January 1, 1990, and before July 1,
62003, (ii) 80% of the proceeds of sales made on or after July
71, 2003 and on or before July 1, 2017, and (iii) 100% of the
8proceeds of sales made thereafter. If, at any time, however,
9the tax under this Act on sales of gasohol, as defined in the
10Use Tax Act, is imposed at the rate of 1.25%, then the tax
11imposed by this Act applies to 100% of the proceeds of sales of
12gasohol made during that time.
13    With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the proceeds of sales made on or after July 1, 2003 and on
16or before December 31, 2023 but applies to 100% of the proceeds
17of sales made thereafter.
18    With respect to biodiesel blends, as defined in the Use
19Tax Act, with no less than 1% and no more than 10% biodiesel,
20the tax imposed by this Act applies to (i) 80% of the proceeds
21of sales made on or after July 1, 2003 and on or before
22December 31, 2018 and (ii) 100% of the proceeds of sales made
23thereafter. If, at any time, however, the tax under this Act on
24sales of biodiesel blends, as defined in the Use Tax Act, with
25no less than 1% and no more than 10% biodiesel is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

 

 

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1100% of the proceeds of sales of biodiesel blends with no less
2than 1% and no more than 10% biodiesel made during that time.
3    With respect to 100% biodiesel, as defined in the Use Tax
4Act, and biodiesel blends, as defined in the Use Tax Act, with
5more than 10% but no more than 99% biodiesel, the tax imposed
6by this Act does not apply to the proceeds of sales made on or
7after July 1, 2003 and on or before December 31, 2023 but
8applies to 100% of the proceeds of sales made thereafter.
9    With respect to food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption) and prescription and nonprescription
14medicines and , drugs, medical appliances, products classified
15as Class III medical devices by the United States Food and Drug
16Administration that are used for cancer treatment pursuant to
17a prescription, as well as any accessories and components
18related to those devices, modifications to a motor vehicle for
19the purpose of rendering it usable by a person with a
20disability, and insulin, urine testing materials, syringes,
21and needles used by diabetics, for human use, the tax is
22imposed at the rate of 1%. For the purposes of this Section,
23until September 1, 2009: the term "soft drinks" means any
24complete, finished, ready-to-use, non-alcoholic drink, whether
25carbonated or not, including but not limited to soda water,
26cola, fruit juice, vegetable juice, carbonated water, and all

 

 

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

 

 

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

 

 

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1the 98th General Assembly, "prescription and nonprescription
2medicines and drugs" includes medical cannabis purchased from
3a registered dispensing organization under the Compassionate
4Use of Medical Cannabis Program Act.
5    As used in this Section, "adult use cannabis" means
6cannabis subject to tax under the Cannabis Cultivation
7Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
8and does not include cannabis subject to tax under the
9Compassionate Use of Medical Cannabis Program Act.
10(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19;
11101-593, eff. 12-4-19.)
 
12    Section 99. Effective date. This Act takes effect July 1,
132021.