Full Text of SB3426 103rd General Assembly
SB3426enr 103RD GENERAL ASSEMBLY | | | SB3426 Enrolled | | LRB103 37529 HLH 67652 b |
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| 1 | | AN ACT concerning revenue. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Service Use Tax Act is amended by changing | 5 | | Section 3-5 as follows: | 6 | | (35 ILCS 110/3-5) | 7 | | Sec. 3-5. Exemptions. Use of the following tangible | 8 | | personal property is exempt from the tax imposed by this Act: | 9 | | (1) Personal property purchased from a corporation, | 10 | | society, association, foundation, institution, or | 11 | | organization, other than a limited liability company, that is | 12 | | organized and operated as a not-for-profit service enterprise | 13 | | for the benefit of persons 65 years of age or older if the | 14 | | personal property was not purchased by the enterprise for the | 15 | | purpose of resale by the enterprise. | 16 | | (2) Personal property purchased by a non-profit Illinois | 17 | | county fair association for use in conducting, operating, or | 18 | | promoting the county fair. | 19 | | (3) Personal property purchased by a not-for-profit arts | 20 | | or cultural organization that establishes, by proof required | 21 | | by the Department by rule, that it has received an exemption | 22 | | under Section 501(c)(3) of the Internal Revenue Code and that | 23 | | is organized and operated primarily for the presentation or |
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| 1 | | support of arts or cultural programming, activities, or | 2 | | services. These organizations include, but are not limited to, | 3 | | music and dramatic arts organizations such as symphony | 4 | | orchestras and theatrical groups, arts and cultural service | 5 | | organizations, local arts councils, visual arts organizations, | 6 | | and media arts organizations. On and after July 1, 2001 (the | 7 | | effective date of Public Act 92-35), however, an entity | 8 | | otherwise eligible for this exemption shall not make tax-free | 9 | | purchases unless it has an active identification number issued | 10 | | by the Department. | 11 | | (4) Legal tender, currency, medallions, or gold or silver | 12 | | coinage issued by the State of Illinois, the government of the | 13 | | United States of America, or the government of any foreign | 14 | | country, and bullion. | 15 | | (5) Until July 1, 2003 and beginning again on September 1, | 16 | | 2004 through August 30, 2014, graphic arts machinery and | 17 | | equipment, including repair and replacement parts, both new | 18 | | and used, and including that manufactured on special order or | 19 | | purchased for lease, certified by the purchaser to be used | 20 | | primarily for graphic arts production. Equipment includes | 21 | | chemicals or chemicals acting as catalysts but only if the | 22 | | chemicals or chemicals acting as catalysts effect a direct and | 23 | | immediate change upon a graphic arts product. Beginning on | 24 | | July 1, 2017, graphic arts machinery and equipment is included | 25 | | in the manufacturing and assembling machinery and equipment | 26 | | exemption under Section 2 of this Act. |
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| 1 | | (6) Personal property purchased from a teacher-sponsored | 2 | | student organization affiliated with an elementary or | 3 | | secondary school located in Illinois. | 4 | | (7) Farm machinery and equipment, both new and used, | 5 | | including that manufactured on special order, certified by the | 6 | | purchaser to be used primarily for production agriculture or | 7 | | State or federal agricultural programs, including individual | 8 | | replacement parts for the machinery and equipment, including | 9 | | machinery and equipment purchased for lease, and including | 10 | | implements of husbandry defined in Section 1-130 of the | 11 | | Illinois Vehicle Code, farm machinery and agricultural | 12 | | chemical and fertilizer spreaders, and nurse wagons required | 13 | | to be registered under Section 3-809 of the Illinois Vehicle | 14 | | Code, but excluding other motor vehicles required to be | 15 | | registered under the Illinois Vehicle Code. Horticultural | 16 | | polyhouses or hoop houses used for propagating, growing, or | 17 | | overwintering plants shall be considered farm machinery and | 18 | | equipment under this item (7). Agricultural chemical tender | 19 | | tanks and dry boxes shall include units sold separately from a | 20 | | motor vehicle required to be licensed and units sold mounted | 21 | | on a motor vehicle required to be licensed if the selling price | 22 | | of the tender is separately stated. | 23 | | Farm machinery and equipment shall include precision | 24 | | farming equipment that is installed or purchased to be | 25 | | installed on farm machinery and equipment , including, but not | 26 | | limited to, tractors, harvesters, sprayers, planters, seeders, |
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| 1 | | or spreaders. Precision farming equipment includes, but is not | 2 | | limited to, soil testing sensors, computers, monitors, | 3 | | software, global positioning and mapping systems, and other | 4 | | such equipment. | 5 | | Farm machinery and equipment also includes computers, | 6 | | sensors, software, and related equipment used primarily in the | 7 | | computer-assisted operation of production agriculture | 8 | | facilities, equipment, and activities such as, but not limited | 9 | | to, the collection, monitoring, and correlation of animal and | 10 | | crop data for the purpose of formulating animal diets and | 11 | | agricultural chemicals. | 12 | | Beginning on January 1, 2024, farm machinery and equipment | 13 | | also includes electrical power generation equipment used | 14 | | primarily for production agriculture. | 15 | | This item (7) is exempt from the provisions of Section | 16 | | 3-75. | 17 | | (8) Until June 30, 2013, fuel and petroleum products sold | 18 | | to or used by an air common carrier, certified by the carrier | 19 | | to be used for consumption, shipment, or storage in the | 20 | | conduct of its business as an air common carrier, for a flight | 21 | | destined for or returning from a location or locations outside | 22 | | the United States without regard to previous or subsequent | 23 | | domestic stopovers. | 24 | | Beginning July 1, 2013, fuel and petroleum products sold | 25 | | to or used by an air carrier, certified by the carrier to be | 26 | | used for consumption, shipment, or storage in the conduct of |
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| 1 | | its business as an air common carrier, for a flight that (i) is | 2 | | engaged in foreign trade or is engaged in trade between the | 3 | | United States and any of its possessions and (ii) transports | 4 | | at least one individual or package for hire from the city of | 5 | | origination to the city of final destination on the same | 6 | | aircraft, without regard to a change in the flight number of | 7 | | that aircraft. | 8 | | (9) Proceeds of mandatory service charges separately | 9 | | stated on customers' bills for the purchase and consumption of | 10 | | food and beverages acquired as an incident to the purchase of a | 11 | | service from a serviceman, to the extent that the proceeds of | 12 | | the service charge are in fact turned over as tips or as a | 13 | | substitute for tips to the employees who participate directly | 14 | | in preparing, serving, hosting or cleaning up the food or | 15 | | beverage function with respect to which the service charge is | 16 | | imposed. | 17 | | (10) Until July 1, 2003, oil field exploration, drilling, | 18 | | and production equipment, including (i) rigs and parts of | 19 | | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) | 20 | | pipe and tubular goods, including casing and drill strings, | 21 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow | 22 | | lines, (v) any individual replacement part for oil field | 23 | | exploration, drilling, and production equipment, and (vi) | 24 | | machinery and equipment purchased for lease; but excluding | 25 | | motor vehicles required to be registered under the Illinois | 26 | | Vehicle Code. |
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| 1 | | (11) Proceeds from the sale of photoprocessing machinery | 2 | | and equipment, including repair and replacement parts, both | 3 | | new and used, including that manufactured on special order, | 4 | | certified by the purchaser to be used primarily for | 5 | | photoprocessing, and including photoprocessing machinery and | 6 | | equipment purchased for lease. | 7 | | (12) Until July 1, 2028, coal and aggregate exploration, | 8 | | mining, off-highway hauling, processing, maintenance, and | 9 | | reclamation equipment, including replacement parts and | 10 | | equipment, and including equipment purchased for lease, but | 11 | | excluding motor vehicles required to be registered under the | 12 | | Illinois Vehicle Code. The changes made to this Section by | 13 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 14 | | for credit or refund is allowed on or after August 16, 2013 | 15 | | (the effective date of Public Act 98-456) for such taxes paid | 16 | | during the period beginning July 1, 2003 and ending on August | 17 | | 16, 2013 (the effective date of Public Act 98-456). | 18 | | (13) Semen used for artificial insemination of livestock | 19 | | for direct agricultural production. | 20 | | (14) Horses, or interests in horses, registered with and | 21 | | meeting the requirements of any of the Arabian Horse Club | 22 | | Registry of America, Appaloosa Horse Club, American Quarter | 23 | | Horse Association, United States Trotting Association, or | 24 | | Jockey Club, as appropriate, used for purposes of breeding or | 25 | | racing for prizes. This item (14) is exempt from the | 26 | | provisions of Section 3-75, and the exemption provided for |
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| 1 | | under this item (14) applies for all periods beginning May 30, | 2 | | 1995, but no claim for credit or refund is allowed on or after | 3 | | January 1, 2008 (the effective date of Public Act 95-88) for | 4 | | such taxes paid during the period beginning May 30, 2000 and | 5 | | ending on January 1, 2008 (the effective date of Public Act | 6 | | 95-88). | 7 | | (15) Computers and communications equipment utilized for | 8 | | any hospital purpose and equipment used in the diagnosis, | 9 | | analysis, or treatment of hospital patients purchased by a | 10 | | lessor who leases the equipment, under a lease of one year or | 11 | | longer executed or in effect at the time the lessor would | 12 | | otherwise be subject to the tax imposed by this Act, to a | 13 | | hospital that has been issued an active tax exemption | 14 | | identification number by the Department under Section 1g of | 15 | | the Retailers' Occupation Tax Act. If the equipment is leased | 16 | | in a manner that does not qualify for this exemption or is used | 17 | | in any other non-exempt manner, the lessor shall be liable for | 18 | | the tax imposed under this Act or the Use Tax Act, as the case | 19 | | may be, based on the fair market value of the property at the | 20 | | time the non-qualifying use occurs. No lessor shall collect or | 21 | | attempt to collect an amount (however designated) that | 22 | | purports to reimburse that lessor for the tax imposed by this | 23 | | Act or the Use Tax Act, as the case may be, if the tax has not | 24 | | been paid by the lessor. If a lessor improperly collects any | 25 | | such amount from the lessee, the lessee shall have a legal | 26 | | right to claim a refund of that amount from the lessor. If, |
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| 1 | | however, that amount is not refunded to the lessee for any | 2 | | reason, the lessor is liable to pay that amount to the | 3 | | Department. | 4 | | (16) Personal property purchased by a lessor who leases | 5 | | the property, under a lease of one year or longer executed or | 6 | | in effect at the time the lessor would otherwise be subject to | 7 | | the tax imposed by this Act, to a governmental body that has | 8 | | been issued an active tax exemption identification number by | 9 | | the Department under Section 1g of the Retailers' Occupation | 10 | | Tax Act. If the property is leased in a manner that does not | 11 | | qualify for this exemption or is used in any other non-exempt | 12 | | manner, the lessor shall be liable for the tax imposed under | 13 | | this Act or the Use Tax Act, as the case may be, based on the | 14 | | fair market value of the property at the time the | 15 | | non-qualifying use occurs. No lessor shall collect or attempt | 16 | | to collect an amount (however designated) that purports to | 17 | | reimburse that lessor for the tax imposed by this Act or the | 18 | | Use Tax Act, as the case may be, if the tax has not been paid | 19 | | by the lessor. If a lessor improperly collects any such amount | 20 | | from the lessee, the lessee shall have a legal right to claim a | 21 | | refund of that amount from the lessor. If, however, that | 22 | | amount is not refunded to the lessee for any reason, the lessor | 23 | | is liable to pay that amount to the Department. | 24 | | (17) Beginning with taxable years ending on or after | 25 | | December 31, 1995 and ending with taxable years ending on or | 26 | | before December 31, 2004, personal property that is donated |
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| 1 | | for disaster relief to be used in a State or federally declared | 2 | | disaster area in Illinois or bordering Illinois by a | 3 | | manufacturer or retailer that is registered in this State to a | 4 | | corporation, society, association, foundation, or institution | 5 | | that has been issued a sales tax exemption identification | 6 | | number by the Department that assists victims of the disaster | 7 | | who reside within the declared disaster area. | 8 | | (18) Beginning with taxable years ending on or after | 9 | | December 31, 1995 and ending with taxable years ending on or | 10 | | before December 31, 2004, personal property that is used in | 11 | | the performance of infrastructure repairs in this State, | 12 | | including , but not limited to , municipal roads and streets, | 13 | | access roads, bridges, sidewalks, waste disposal systems, | 14 | | water and sewer line extensions, water distribution and | 15 | | purification facilities, storm water drainage and retention | 16 | | facilities, and sewage treatment facilities, resulting from a | 17 | | State or federally declared disaster in Illinois or bordering | 18 | | Illinois when such repairs are initiated on facilities located | 19 | | in the declared disaster area within 6 months after the | 20 | | disaster. | 21 | | (19) Beginning July 1, 1999, game or game birds purchased | 22 | | at a "game breeding and hunting preserve area" as that term is | 23 | | used in the Wildlife Code. This paragraph is exempt from the | 24 | | provisions of Section 3-75. | 25 | | (20) A motor vehicle, as that term is defined in Section | 26 | | 1-146 of the Illinois Vehicle Code, that is donated to a |
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| 1 | | corporation, limited liability company, society, association, | 2 | | foundation, or institution that is determined by the | 3 | | Department to be organized and operated exclusively for | 4 | | educational purposes. For purposes of this exemption, "a | 5 | | corporation, limited liability company, society, association, | 6 | | foundation, or institution organized and operated exclusively | 7 | | for educational purposes" means all tax-supported public | 8 | | schools, private schools that offer systematic instruction in | 9 | | useful branches of learning by methods common to public | 10 | | schools and that compare favorably in their scope and | 11 | | intensity with the course of study presented in tax-supported | 12 | | schools, and vocational or technical schools or institutes | 13 | | organized and operated exclusively to provide a course of | 14 | | study of not less than 6 weeks duration and designed to prepare | 15 | | individuals to follow a trade or to pursue a manual, | 16 | | technical, mechanical, industrial, business, or commercial | 17 | | occupation. | 18 | | (21) Beginning January 1, 2000, personal property, | 19 | | including food, purchased through fundraising events for the | 20 | | benefit of a public or private elementary or secondary school, | 21 | | a group of those schools, or one or more school districts if | 22 | | the events are sponsored by an entity recognized by the school | 23 | | district that consists primarily of volunteers and includes | 24 | | parents and teachers of the school children. This paragraph | 25 | | does not apply to fundraising events (i) for the benefit of | 26 | | private home instruction or (ii) for which the fundraising |
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| 1 | | entity purchases the personal property sold at the events from | 2 | | another individual or entity that sold the property for the | 3 | | purpose of resale by the fundraising entity and that profits | 4 | | from the sale to the fundraising entity. This paragraph is | 5 | | exempt from the provisions of Section 3-75. | 6 | | (22) Beginning January 1, 2000 and through December 31, | 7 | | 2001, new or used automatic vending machines that prepare and | 8 | | serve hot food and beverages, including coffee, soup, and | 9 | | other items, and replacement parts for these machines. | 10 | | Beginning January 1, 2002 and through June 30, 2003, machines | 11 | | and parts for machines used in commercial, coin-operated | 12 | | amusement and vending business if a use or occupation tax is | 13 | | paid on the gross receipts derived from the use of the | 14 | | commercial, coin-operated amusement and vending machines. This | 15 | | paragraph is exempt from the provisions of Section 3-75. | 16 | | (23) Beginning August 23, 2001 and through June 30, 2016, | 17 | | food for human consumption that is to be consumed off the | 18 | | premises where it is sold (other than alcoholic beverages, | 19 | | soft drinks, and food that has been prepared for immediate | 20 | | consumption) and prescription and nonprescription medicines, | 21 | | drugs, medical appliances, and insulin, urine testing | 22 | | materials, syringes, and needles used by diabetics, for human | 23 | | use, when purchased for use by a person receiving medical | 24 | | assistance under Article V of the Illinois Public Aid Code who | 25 | | resides in a licensed long-term care facility, as defined in | 26 | | the Nursing Home Care Act, or in a licensed facility as defined |
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| 1 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 2 | | Specialized Mental Health Rehabilitation Act of 2013. | 3 | | (24) Beginning on August 2, 2001 (the effective date of | 4 | | Public Act 92-227), computers and communications equipment | 5 | | utilized for any hospital purpose and equipment used in the | 6 | | diagnosis, analysis, or treatment of hospital patients | 7 | | purchased by a lessor who leases the equipment, under a lease | 8 | | of one year or longer executed or in effect at the time the | 9 | | lessor would otherwise be subject to the tax imposed by this | 10 | | Act, to a hospital that has been issued an active tax exemption | 11 | | identification number by the Department under Section 1g of | 12 | | the Retailers' Occupation Tax Act. If the equipment is leased | 13 | | in a manner that does not qualify for this exemption or is used | 14 | | in any other nonexempt manner, the lessor shall be liable for | 15 | | the tax imposed under this Act or the Use Tax Act, as the case | 16 | | may be, based on the fair market value of the property at the | 17 | | time the nonqualifying use occurs. No lessor shall collect or | 18 | | attempt to collect an amount (however designated) that | 19 | | purports to reimburse that lessor for the tax imposed by this | 20 | | Act or the Use Tax Act, as the case may be, if the tax has not | 21 | | been paid by the lessor. If a lessor improperly collects any | 22 | | such amount from the lessee, the lessee shall have a legal | 23 | | right to claim a refund of that amount from the lessor. If, | 24 | | however, that amount is not refunded to the lessee for any | 25 | | reason, the lessor is liable to pay that amount to the | 26 | | Department. This paragraph is exempt from the provisions of |
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| 1 | | Section 3-75. | 2 | | (25) Beginning on August 2, 2001 (the effective date of | 3 | | Public Act 92-227), personal property purchased by a lessor | 4 | | who leases the property, under a lease of one year or longer | 5 | | executed or in effect at the time the lessor would otherwise be | 6 | | subject to the tax imposed by this Act, to a governmental body | 7 | | that has been issued an active tax exemption identification | 8 | | number by the Department under Section 1g of the Retailers' | 9 | | Occupation Tax Act. If the property is leased in a manner that | 10 | | does not qualify for this exemption or is used in any other | 11 | | nonexempt manner, the lessor shall be liable for the tax | 12 | | imposed under this Act or the Use Tax Act, as the case may be, | 13 | | based on the fair market value of the property at the time the | 14 | | nonqualifying use occurs. No lessor shall collect or attempt | 15 | | to collect an amount (however designated) that purports to | 16 | | reimburse that lessor for the tax imposed by this Act or the | 17 | | Use Tax Act, as the case may be, if the tax has not been paid | 18 | | by the lessor. If a lessor improperly collects any such amount | 19 | | from the lessee, the lessee shall have a legal right to claim a | 20 | | refund of that amount from the lessor. If, however, that | 21 | | amount is not refunded to the lessee for any reason, the lessor | 22 | | is liable to pay that amount to the Department. This paragraph | 23 | | is exempt from the provisions of Section 3-75. | 24 | | (26) Beginning January 1, 2008, tangible personal property | 25 | | used in the construction or maintenance of a community water | 26 | | supply, as defined under Section 3.145 of the Environmental |
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| 1 | | Protection Act, that is operated by a not-for-profit | 2 | | corporation that holds a valid water supply permit issued | 3 | | under Title IV of the Environmental Protection Act. This | 4 | | paragraph is exempt from the provisions of Section 3-75. | 5 | | (27) Beginning January 1, 2010 and continuing through | 6 | | December 31, 2029, materials, parts, equipment, components, | 7 | | and furnishings incorporated into or upon an aircraft as part | 8 | | of the modification, refurbishment, completion, replacement, | 9 | | repair, or maintenance of the aircraft. This exemption | 10 | | includes consumable supplies used in the modification, | 11 | | refurbishment, completion, replacement, repair, and | 12 | | maintenance of aircraft. However, until January 1, 2024, this | 13 | | exemption excludes any materials, parts, equipment, | 14 | | components, and consumable supplies used in the modification, | 15 | | replacement, repair, and maintenance of aircraft engines or | 16 | | power plants, whether such engines or power plants are | 17 | | installed or uninstalled upon any such aircraft. "Consumable | 18 | | supplies" include, but are not limited to, adhesive, tape, | 19 | | sandpaper, general purpose lubricants, cleaning solution, | 20 | | latex gloves, and protective films. | 21 | | Beginning January 1, 2010 and continuing through December | 22 | | 31, 2023, this exemption applies only to the use of qualifying | 23 | | tangible personal property transferred incident to the | 24 | | modification, refurbishment, completion, replacement, repair, | 25 | | or maintenance of aircraft by persons who (i) hold an Air | 26 | | Agency Certificate and are empowered to operate an approved |
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| 1 | | repair station by the Federal Aviation Administration, (ii) | 2 | | have a Class IV Rating, and (iii) conduct operations in | 3 | | accordance with Part 145 of the Federal Aviation Regulations. | 4 | | From January 1, 2024 through December 31, 2029, this exemption | 5 | | applies only to the use of qualifying tangible personal | 6 | | property transferred incident to by : (A) the modification, | 7 | | refurbishment, completion, repair, replacement, or maintenance | 8 | | of an aircraft by persons who modify, refurbish, complete, | 9 | | repair, replace, or maintain aircraft and who (i) hold an Air | 10 | | Agency Certificate and are empowered to operate an approved | 11 | | repair station by the Federal Aviation Administration, (ii) | 12 | | have a Class IV Rating, and (iii) conduct operations in | 13 | | accordance with Part 145 of the Federal Aviation Regulations; | 14 | | and (B) persons who engage in the modification, replacement, | 15 | | repair, and maintenance of aircraft engines or power plants | 16 | | without regard to whether or not those persons meet the | 17 | | qualifications of item (A). | 18 | | The exemption does not include aircraft operated by a | 19 | | commercial air carrier providing scheduled passenger air | 20 | | service pursuant to authority issued under Part 121 or Part | 21 | | 129 of the Federal Aviation Regulations. The changes made to | 22 | | this paragraph (27) by Public Act 98-534 are declarative of | 23 | | existing law. It is the intent of the General Assembly that the | 24 | | exemption under this paragraph (27) applies continuously from | 25 | | January 1, 2010 through December 31, 2024; however, no claim | 26 | | for credit or refund is allowed for taxes paid as a result of |
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| 1 | | the disallowance of this exemption on or after January 1, 2015 | 2 | | and prior to February 5, 2020 (the effective date of Public Act | 3 | | 101-629). | 4 | | (28) Tangible personal property purchased by a | 5 | | public-facilities corporation, as described in Section | 6 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 7 | | constructing or furnishing a municipal convention hall, but | 8 | | only if the legal title to the municipal convention hall is | 9 | | transferred to the municipality without any further | 10 | | consideration by or on behalf of the municipality at the time | 11 | | of the completion of the municipal convention hall or upon the | 12 | | retirement or redemption of any bonds or other debt | 13 | | instruments issued by the public-facilities corporation in | 14 | | connection with the development of the municipal convention | 15 | | hall. This exemption includes existing public-facilities | 16 | | corporations as provided in Section 11-65-25 of the Illinois | 17 | | Municipal Code. This paragraph is exempt from the provisions | 18 | | of Section 3-75. | 19 | | (29) Beginning January 1, 2017 and through December 31, | 20 | | 2026, menstrual pads, tampons, and menstrual cups. | 21 | | (30) Tangible personal property transferred to a purchaser | 22 | | who is exempt from the tax imposed by this Act by operation of | 23 | | federal law. This paragraph is exempt from the provisions of | 24 | | Section 3-75. | 25 | | (31) Qualified tangible personal property used in the | 26 | | construction or operation of a data center that has been |
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| 1 | | granted a certificate of exemption by the Department of | 2 | | Commerce and Economic Opportunity, whether that tangible | 3 | | personal property is purchased by the owner, operator, or | 4 | | tenant of the data center or by a contractor or subcontractor | 5 | | of the owner, operator, or tenant. Data centers that would | 6 | | have qualified for a certificate of exemption prior to January | 7 | | 1, 2020 had Public Act 101-31 been in effect, may apply for and | 8 | | obtain an exemption for subsequent purchases of computer | 9 | | equipment or enabling software purchased or leased to upgrade, | 10 | | supplement, or replace computer equipment or enabling software | 11 | | purchased or leased in the original investment that would have | 12 | | qualified. | 13 | | The Department of Commerce and Economic Opportunity shall | 14 | | grant a certificate of exemption under this item (31) to | 15 | | qualified data centers as defined by Section 605-1025 of the | 16 | | Department of Commerce and Economic Opportunity Law of the | 17 | | Civil Administrative Code of Illinois. | 18 | | For the purposes of this item (31): | 19 | | "Data center" means a building or a series of | 20 | | buildings rehabilitated or constructed to house working | 21 | | servers in one physical location or multiple sites within | 22 | | the State of Illinois. | 23 | | "Qualified tangible personal property" means: | 24 | | electrical systems and equipment; climate control and | 25 | | chilling equipment and systems; mechanical systems and | 26 | | equipment; monitoring and secure systems; emergency |
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| 1 | | generators; hardware; computers; servers; data storage | 2 | | devices; network connectivity equipment; racks; cabinets; | 3 | | telecommunications cabling infrastructure; raised floor | 4 | | systems; peripheral components or systems; software; | 5 | | mechanical, electrical, or plumbing systems; battery | 6 | | systems; cooling systems and towers; temperature control | 7 | | systems; other cabling; and other data center | 8 | | infrastructure equipment and systems necessary to operate | 9 | | qualified tangible personal property, including fixtures; | 10 | | and component parts of any of the foregoing, including | 11 | | installation, maintenance, repair, refurbishment, and | 12 | | replacement of qualified tangible personal property to | 13 | | generate, transform, transmit, distribute, or manage | 14 | | electricity necessary to operate qualified tangible | 15 | | personal property; and all other tangible personal | 16 | | property that is essential to the operations of a computer | 17 | | data center. The term "qualified tangible personal | 18 | | property" also includes building materials physically | 19 | | incorporated into in to the qualifying data center. To | 20 | | document the exemption allowed under this Section, the | 21 | | retailer must obtain from the purchaser a copy of the | 22 | | certificate of eligibility issued by the Department of | 23 | | Commerce and Economic Opportunity. | 24 | | This item (31) is exempt from the provisions of Section | 25 | | 3-75. | 26 | | (32) Beginning July 1, 2022, breast pumps, breast pump |
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| 1 | | collection and storage supplies, and breast pump kits. This | 2 | | item (32) is exempt from the provisions of Section 3-75. As | 3 | | used in this item (32): | 4 | | "Breast pump" means an electrically controlled or | 5 | | manually controlled pump device designed or marketed to be | 6 | | used to express milk from a human breast during lactation, | 7 | | including the pump device and any battery, AC adapter, or | 8 | | other power supply unit that is used to power the pump | 9 | | device and is packaged and sold with the pump device at the | 10 | | time of sale. | 11 | | "Breast pump collection and storage supplies" means | 12 | | items of tangible personal property designed or marketed | 13 | | to be used in conjunction with a breast pump to collect | 14 | | milk expressed from a human breast and to store collected | 15 | | milk until it is ready for consumption. | 16 | | "Breast pump collection and storage supplies" | 17 | | includes, but is not limited to: breast shields and breast | 18 | | shield connectors; breast pump tubes and tubing adapters; | 19 | | breast pump valves and membranes; backflow protectors and | 20 | | backflow protector adaptors; bottles and bottle caps | 21 | | specific to the operation of the breast pump; and breast | 22 | | milk storage bags. | 23 | | "Breast pump collection and storage supplies" does not | 24 | | include: (1) bottles and bottle caps not specific to the | 25 | | operation of the breast pump; (2) breast pump travel bags | 26 | | and other similar carrying accessories, including ice |
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| 1 | | packs, labels, and other similar products; (3) breast pump | 2 | | cleaning supplies; (4) nursing bras, bra pads, breast | 3 | | shells, and other similar products; and (5) creams, | 4 | | ointments, and other similar products that relieve | 5 | | breastfeeding-related symptoms or conditions of the | 6 | | breasts or nipples, unless sold as part of a breast pump | 7 | | kit that is pre-packaged by the breast pump manufacturer | 8 | | or distributor. | 9 | | "Breast pump kit" means a kit that: (1) contains no | 10 | | more than a breast pump, breast pump collection and | 11 | | storage supplies, a rechargeable battery for operating the | 12 | | breast pump, a breastmilk cooler, bottle stands, ice | 13 | | packs, and a breast pump carrying case; and (2) is | 14 | | pre-packaged as a breast pump kit by the breast pump | 15 | | manufacturer or distributor. | 16 | | (33) Tangible personal property sold by or on behalf of | 17 | | the State Treasurer pursuant to the Revised Uniform Unclaimed | 18 | | Property Act. This item (33) is exempt from the provisions of | 19 | | Section 3-75. | 20 | | (34) Beginning on January 1, 2024, tangible personal | 21 | | property purchased by an active duty member of the armed | 22 | | forces of the United States who presents valid military | 23 | | identification and purchases the property using a form of | 24 | | payment where the federal government is the payor. The member | 25 | | of the armed forces must complete, at the point of sale, a form | 26 | | prescribed by the Department of Revenue documenting that the |
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| 1 | | transaction is eligible for the exemption under this | 2 | | paragraph. Retailers must keep the form as documentation of | 3 | | the exemption in their records for a period of not less than 6 | 4 | | years. "Armed forces of the United States" means the United | 5 | | States Army, Navy, Air Force, Marine Corps, or Coast Guard. | 6 | | This paragraph is exempt from the provisions of Section 3-75. | 7 | | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | 8 | | Section 70-10, eff. 4-19-22; 102-700, Article 75, Section | 9 | | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | 10 | | Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10, | 11 | | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | 12 | | revised 12-12-23.) | 13 | | Section 10. The Service Occupation Tax Act is amended by | 14 | | changing Section 3-5 as follows: | 15 | | (35 ILCS 115/3-5) | 16 | | Sec. 3-5. Exemptions. The following tangible personal | 17 | | property is exempt from the tax imposed by this Act: | 18 | | (1) Personal property sold by a corporation, society, | 19 | | association, foundation, institution, or organization, other | 20 | | than a limited liability company, that is organized and | 21 | | operated as a not-for-profit service enterprise for the | 22 | | benefit of persons 65 years of age or older if the personal | 23 | | property was not purchased by the enterprise for the purpose | 24 | | of resale by the enterprise. |
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| 1 | | (2) Personal property purchased by a not-for-profit | 2 | | Illinois county fair association for use in conducting, | 3 | | operating, or promoting the county fair. | 4 | | (3) Personal property purchased by any not-for-profit arts | 5 | | or cultural organization that establishes, by proof required | 6 | | by the Department by rule, that it has received an exemption | 7 | | under Section 501(c)(3) of the Internal Revenue Code and that | 8 | | is organized and operated primarily for the presentation or | 9 | | support of arts or cultural programming, activities, or | 10 | | services. These organizations include, but are not limited to, | 11 | | music and dramatic arts organizations such as symphony | 12 | | orchestras and theatrical groups, arts and cultural service | 13 | | organizations, local arts councils, visual arts organizations, | 14 | | and media arts organizations. On and after July 1, 2001 (the | 15 | | effective date of Public Act 92-35), however, an entity | 16 | | otherwise eligible for this exemption shall not make tax-free | 17 | | purchases unless it has an active identification number issued | 18 | | by the Department. | 19 | | (4) Legal tender, currency, medallions, or gold or silver | 20 | | coinage issued by the State of Illinois, the government of the | 21 | | United States of America, or the government of any foreign | 22 | | country, and bullion. | 23 | | (5) Until July 1, 2003 and beginning again on September 1, | 24 | | 2004 through August 30, 2014, graphic arts machinery and | 25 | | equipment, including repair and replacement parts, both new | 26 | | and used, and including that manufactured on special order or |
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| 1 | | purchased for lease, certified by the purchaser to be used | 2 | | primarily for graphic arts production. Equipment includes | 3 | | chemicals or chemicals acting as catalysts but only if the | 4 | | chemicals or chemicals acting as catalysts effect a direct and | 5 | | immediate change upon a graphic arts product. Beginning on | 6 | | July 1, 2017, graphic arts machinery and equipment is included | 7 | | in the manufacturing and assembling machinery and equipment | 8 | | exemption under Section 2 of this Act. | 9 | | (6) Personal property sold by a teacher-sponsored student | 10 | | organization affiliated with an elementary or secondary school | 11 | | located in Illinois. | 12 | | (7) Farm machinery and equipment, both new and used, | 13 | | including that manufactured on special order, certified by the | 14 | | purchaser to be used primarily for production agriculture or | 15 | | State or federal agricultural programs, including individual | 16 | | replacement parts for the machinery and equipment, including | 17 | | machinery and equipment purchased for lease, and including | 18 | | implements of husbandry defined in Section 1-130 of the | 19 | | Illinois Vehicle Code, farm machinery and agricultural | 20 | | chemical and fertilizer spreaders, and nurse wagons required | 21 | | to be registered under Section 3-809 of the Illinois Vehicle | 22 | | Code, but excluding other motor vehicles required to be | 23 | | registered under the Illinois Vehicle Code. Horticultural | 24 | | polyhouses or hoop houses used for propagating, growing, or | 25 | | overwintering plants shall be considered farm machinery and | 26 | | equipment under this item (7). Agricultural chemical tender |
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| 1 | | tanks and dry boxes shall include units sold separately from a | 2 | | motor vehicle required to be licensed and units sold mounted | 3 | | on a motor vehicle required to be licensed if the selling price | 4 | | of the tender is separately stated. | 5 | | Farm machinery and equipment shall include precision | 6 | | farming equipment that is installed or purchased to be | 7 | | installed on farm machinery and equipment , including, but not | 8 | | limited to, tractors, harvesters, sprayers, planters, seeders, | 9 | | or spreaders. Precision farming equipment includes, but is not | 10 | | limited to, soil testing sensors, computers, monitors, | 11 | | software, global positioning and mapping systems, and other | 12 | | such equipment. | 13 | | Farm machinery and equipment also includes computers, | 14 | | sensors, software, and related equipment used primarily in the | 15 | | computer-assisted operation of production agriculture | 16 | | facilities, equipment, and activities such as, but not limited | 17 | | to, the collection, monitoring, and correlation of animal and | 18 | | crop data for the purpose of formulating animal diets and | 19 | | agricultural chemicals. | 20 | | Beginning on January 1, 2024, farm machinery and equipment | 21 | | also includes electrical power generation equipment used | 22 | | primarily for production agriculture. | 23 | | This item (7) is exempt from the provisions of Section | 24 | | 3-55. | 25 | | (8) Until June 30, 2013, fuel and petroleum products sold | 26 | | to or used by an air common carrier, certified by the carrier |
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| 1 | | to be used for consumption, shipment, or storage in the | 2 | | conduct of its business as an air common carrier, for a flight | 3 | | destined for or returning from a location or locations outside | 4 | | the United States without regard to previous or subsequent | 5 | | domestic stopovers. | 6 | | Beginning July 1, 2013, fuel and petroleum products sold | 7 | | to or used by an air carrier, certified by the carrier to be | 8 | | used for consumption, shipment, or storage in the conduct of | 9 | | its business as an air common carrier, for a flight that (i) is | 10 | | engaged in foreign trade or is engaged in trade between the | 11 | | United States and any of its possessions and (ii) transports | 12 | | at least one individual or package for hire from the city of | 13 | | origination to the city of final destination on the same | 14 | | aircraft, without regard to a change in the flight number of | 15 | | that aircraft. | 16 | | (9) Proceeds of mandatory service charges separately | 17 | | stated on customers' bills for the purchase and consumption of | 18 | | food and beverages, to the extent that the proceeds of the | 19 | | service charge are in fact turned over as tips or as a | 20 | | substitute for tips to the employees who participate directly | 21 | | in preparing, serving, hosting or cleaning up the food or | 22 | | beverage function with respect to which the service charge is | 23 | | imposed. | 24 | | (10) Until July 1, 2003, oil field exploration, drilling, | 25 | | and production equipment, including (i) rigs and parts of | 26 | | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) |
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| 1 | | pipe and tubular goods, including casing and drill strings, | 2 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow | 3 | | lines, (v) any individual replacement part for oil field | 4 | | exploration, drilling, and production equipment, and (vi) | 5 | | machinery and equipment purchased for lease; but excluding | 6 | | motor vehicles required to be registered under the Illinois | 7 | | Vehicle Code. | 8 | | (11) Photoprocessing machinery and equipment, including | 9 | | repair and replacement parts, both new and used, including | 10 | | that manufactured on special order, certified by the purchaser | 11 | | to be used primarily for photoprocessing, and including | 12 | | photoprocessing machinery and equipment purchased for lease. | 13 | | (12) Until July 1, 2028, coal and aggregate exploration, | 14 | | mining, off-highway hauling, processing, maintenance, and | 15 | | reclamation equipment, including replacement parts and | 16 | | equipment, and including equipment purchased for lease, but | 17 | | excluding motor vehicles required to be registered under the | 18 | | Illinois Vehicle Code. The changes made to this Section by | 19 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 20 | | for credit or refund is allowed on or after August 16, 2013 | 21 | | (the effective date of Public Act 98-456) for such taxes paid | 22 | | during the period beginning July 1, 2003 and ending on August | 23 | | 16, 2013 (the effective date of Public Act 98-456). | 24 | | (13) Beginning January 1, 1992 and through June 30, 2016, | 25 | | food for human consumption that is to be consumed off the | 26 | | premises where it is sold (other than alcoholic beverages, |
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| 1 | | soft drinks and food that has been prepared for immediate | 2 | | consumption) and prescription and non-prescription medicines, | 3 | | drugs, medical appliances, and insulin, urine testing | 4 | | materials, syringes, and needles used by diabetics, for human | 5 | | use, when purchased for use by a person receiving medical | 6 | | assistance under Article V of the Illinois Public Aid Code who | 7 | | resides in a licensed long-term care facility, as defined in | 8 | | the Nursing Home Care Act, or in a licensed facility as defined | 9 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 10 | | Specialized Mental Health Rehabilitation Act of 2013. | 11 | | (14) Semen used for artificial insemination of livestock | 12 | | for direct agricultural production. | 13 | | (15) Horses, or interests in horses, registered with and | 14 | | meeting the requirements of any of the Arabian Horse Club | 15 | | Registry of America, Appaloosa Horse Club, American Quarter | 16 | | Horse Association, United States Trotting Association, or | 17 | | Jockey Club, as appropriate, used for purposes of breeding or | 18 | | racing for prizes. This item (15) is exempt from the | 19 | | provisions of Section 3-55, and the exemption provided for | 20 | | under this item (15) applies for all periods beginning May 30, | 21 | | 1995, but no claim for credit or refund is allowed on or after | 22 | | January 1, 2008 (the effective date of Public Act 95-88) for | 23 | | such taxes paid during the period beginning May 30, 2000 and | 24 | | ending on January 1, 2008 (the effective date of Public Act | 25 | | 95-88). | 26 | | (16) Computers and communications equipment utilized for |
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| 1 | | any hospital purpose and equipment used in the diagnosis, | 2 | | analysis, or treatment of hospital patients sold to a lessor | 3 | | who leases the equipment, under a lease of one year or longer | 4 | | executed or in effect at the time of the purchase, to a | 5 | | hospital that has been issued an active tax exemption | 6 | | identification number by the Department under Section 1g of | 7 | | the Retailers' Occupation Tax Act. | 8 | | (17) Personal property sold to a lessor who leases the | 9 | | property, under a lease of one year or longer executed or in | 10 | | effect at the time of the purchase, to a governmental body that | 11 | | has been issued an active tax exemption identification number | 12 | | by the Department under Section 1g of the Retailers' | 13 | | Occupation Tax Act. | 14 | | (18) Beginning with taxable years ending on or after | 15 | | December 31, 1995 and ending with taxable years ending on or | 16 | | before December 31, 2004, personal property that is donated | 17 | | for disaster relief to be used in a State or federally declared | 18 | | disaster area in Illinois or bordering Illinois by a | 19 | | manufacturer or retailer that is registered in this State to a | 20 | | corporation, society, association, foundation, or institution | 21 | | that has been issued a sales tax exemption identification | 22 | | number by the Department that assists victims of the disaster | 23 | | who reside within the declared disaster area. | 24 | | (19) Beginning with taxable years ending on or after | 25 | | December 31, 1995 and ending with taxable years ending on or | 26 | | before December 31, 2004, personal property that is used in |
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| 1 | | the performance of infrastructure repairs in this State, | 2 | | including , but not limited to , municipal roads and streets, | 3 | | access roads, bridges, sidewalks, waste disposal systems, | 4 | | water and sewer line extensions, water distribution and | 5 | | purification facilities, storm water drainage and retention | 6 | | facilities, and sewage treatment facilities, resulting from a | 7 | | State or federally declared disaster in Illinois or bordering | 8 | | Illinois when such repairs are initiated on facilities located | 9 | | in the declared disaster area within 6 months after the | 10 | | disaster. | 11 | | (20) Beginning July 1, 1999, game or game birds sold at a | 12 | | "game breeding and hunting preserve area" as that term is used | 13 | | in the Wildlife Code. This paragraph is exempt from the | 14 | | provisions of Section 3-55. | 15 | | (21) A motor vehicle, as that term is defined in Section | 16 | | 1-146 of the Illinois Vehicle Code, that is donated to a | 17 | | corporation, limited liability company, society, association, | 18 | | foundation, or institution that is determined by the | 19 | | Department to be organized and operated exclusively for | 20 | | educational purposes. For purposes of this exemption, "a | 21 | | corporation, limited liability company, society, association, | 22 | | foundation, or institution organized and operated exclusively | 23 | | for educational purposes" means all tax-supported public | 24 | | schools, private schools that offer systematic instruction in | 25 | | useful branches of learning by methods common to public | 26 | | schools and that compare favorably in their scope and |
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| 1 | | intensity with the course of study presented in tax-supported | 2 | | schools, and vocational or technical schools or institutes | 3 | | organized and operated exclusively to provide a course of | 4 | | study of not less than 6 weeks duration and designed to prepare | 5 | | individuals to follow a trade or to pursue a manual, | 6 | | technical, mechanical, industrial, business, or commercial | 7 | | occupation. | 8 | | (22) Beginning January 1, 2000, personal property, | 9 | | including food, purchased through fundraising events for the | 10 | | benefit of a public or private elementary or secondary school, | 11 | | a group of those schools, or one or more school districts if | 12 | | the events are sponsored by an entity recognized by the school | 13 | | district that consists primarily of volunteers and includes | 14 | | parents and teachers of the school children. This paragraph | 15 | | does not apply to fundraising events (i) for the benefit of | 16 | | private home instruction or (ii) for which the fundraising | 17 | | entity purchases the personal property sold at the events from | 18 | | another individual or entity that sold the property for the | 19 | | purpose of resale by the fundraising entity and that profits | 20 | | from the sale to the fundraising entity. This paragraph is | 21 | | exempt from the provisions of Section 3-55. | 22 | | (23) Beginning January 1, 2000 and through December 31, | 23 | | 2001, new or used automatic vending machines that prepare and | 24 | | serve hot food and beverages, including coffee, soup, and | 25 | | other items, and replacement parts for these machines. | 26 | | Beginning January 1, 2002 and through June 30, 2003, machines |
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| 1 | | and parts for machines used in commercial, coin-operated | 2 | | amusement and vending business if a use or occupation tax is | 3 | | paid on the gross receipts derived from the use of the | 4 | | commercial, coin-operated amusement and vending machines. This | 5 | | paragraph is exempt from the provisions of Section 3-55. | 6 | | (24) Beginning on August 2, 2001 (the effective date of | 7 | | Public Act 92-227), computers and communications equipment | 8 | | utilized for any hospital purpose and equipment used in the | 9 | | diagnosis, analysis, or treatment of hospital patients sold to | 10 | | a lessor who leases the equipment, under a lease of one year or | 11 | | longer executed or in effect at the time of the purchase, to a | 12 | | hospital that has been issued an active tax exemption | 13 | | identification number by the Department under Section 1g of | 14 | | the Retailers' Occupation Tax Act. This paragraph is exempt | 15 | | from the provisions of Section 3-55. | 16 | | (25) Beginning on August 2, 2001 (the effective date of | 17 | | Public Act 92-227), personal property sold to a lessor who | 18 | | leases the property, under a lease of one year or longer | 19 | | executed or in effect at the time of the purchase, to a | 20 | | governmental body that has been issued an active tax exemption | 21 | | identification number by the Department under Section 1g of | 22 | | the Retailers' Occupation Tax Act. This paragraph is exempt | 23 | | from the provisions of Section 3-55. | 24 | | (26) Beginning on January 1, 2002 and through June 30, | 25 | | 2016, tangible personal property purchased from an Illinois | 26 | | retailer by a taxpayer engaged in centralized purchasing |
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| 1 | | activities in Illinois who will, upon receipt of the property | 2 | | in Illinois, temporarily store the property in Illinois (i) | 3 | | for the purpose of subsequently transporting it outside this | 4 | | State for use or consumption thereafter solely outside this | 5 | | State or (ii) for the purpose of being processed, fabricated, | 6 | | or manufactured into, attached to, or incorporated into other | 7 | | tangible personal property to be transported outside this | 8 | | State and thereafter used or consumed solely outside this | 9 | | State. The Director of Revenue shall, pursuant to rules | 10 | | adopted in accordance with the Illinois Administrative | 11 | | Procedure Act, issue a permit to any taxpayer in good standing | 12 | | with the Department who is eligible for the exemption under | 13 | | this paragraph (26). The permit issued under this paragraph | 14 | | (26) shall authorize the holder, to the extent and in the | 15 | | manner specified in the rules adopted under this Act, to | 16 | | purchase tangible personal property from a retailer exempt | 17 | | from the taxes imposed by this Act. Taxpayers shall maintain | 18 | | all necessary books and records to substantiate the use and | 19 | | consumption of all such tangible personal property outside of | 20 | | the State of Illinois. | 21 | | (27) Beginning January 1, 2008, tangible personal property | 22 | | used in the construction or maintenance of a community water | 23 | | supply, as defined under Section 3.145 of the Environmental | 24 | | Protection Act, that is operated by a not-for-profit | 25 | | corporation that holds a valid water supply permit issued | 26 | | under Title IV of the Environmental Protection Act. This |
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| 1 | | paragraph is exempt from the provisions of Section 3-55. | 2 | | (28) Tangible personal property sold to a | 3 | | public-facilities corporation, as described in Section | 4 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 5 | | constructing or furnishing a municipal convention hall, but | 6 | | only if the legal title to the municipal convention hall is | 7 | | transferred to the municipality without any further | 8 | | consideration by or on behalf of the municipality at the time | 9 | | of the completion of the municipal convention hall or upon the | 10 | | retirement or redemption of any bonds or other debt | 11 | | instruments issued by the public-facilities corporation in | 12 | | connection with the development of the municipal convention | 13 | | hall. This exemption includes existing public-facilities | 14 | | corporations as provided in Section 11-65-25 of the Illinois | 15 | | Municipal Code. This paragraph is exempt from the provisions | 16 | | of Section 3-55. | 17 | | (29) Beginning January 1, 2010 and continuing through | 18 | | December 31, 2029, materials, parts, equipment, components, | 19 | | and furnishings incorporated into or upon an aircraft as part | 20 | | of the modification, refurbishment, completion, replacement, | 21 | | repair, or maintenance of the aircraft. This exemption | 22 | | includes consumable supplies used in the modification, | 23 | | refurbishment, completion, replacement, repair, and | 24 | | maintenance of aircraft. However, until January 1, 2024, this | 25 | | exemption excludes any materials, parts, equipment, | 26 | | components, and consumable supplies used in the modification, |
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| 1 | | replacement, repair, and maintenance of aircraft engines or | 2 | | power plants, whether such engines or power plants are | 3 | | installed or uninstalled upon any such aircraft. "Consumable | 4 | | supplies" include, but are not limited to, adhesive, tape, | 5 | | sandpaper, general purpose lubricants, cleaning solution, | 6 | | latex gloves, and protective films. | 7 | | Beginning January 1, 2010 and continuing through December | 8 | | 31, 2023, this exemption applies only to the transfer of | 9 | | qualifying tangible personal property incident to the | 10 | | modification, refurbishment, completion, replacement, repair, | 11 | | or maintenance of an aircraft by persons who (i) hold an Air | 12 | | Agency Certificate and are empowered to operate an approved | 13 | | repair station by the Federal Aviation Administration, (ii) | 14 | | have a Class IV Rating, and (iii) conduct operations in | 15 | | accordance with Part 145 of the Federal Aviation Regulations. | 16 | | The exemption does not include aircraft operated by a | 17 | | commercial air carrier providing scheduled passenger air | 18 | | service pursuant to authority issued under Part 121 or Part | 19 | | 129 of the Federal Aviation Regulations. From January 1, 2024 | 20 | | through December 31, 2029, this exemption applies only to the | 21 | | transfer use of qualifying tangible personal property incident | 22 | | to by : (A) the modification, refurbishment, completion, | 23 | | repair, replacement, or maintenance of an aircraft by persons | 24 | | who modify, refurbish, complete, repair, replace, or maintain | 25 | | aircraft and who (i) hold an Air Agency Certificate and are | 26 | | empowered to operate an approved repair station by the Federal |
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| 1 | | Aviation Administration, (ii) have a Class IV Rating, and | 2 | | (iii) conduct operations in accordance with Part 145 of the | 3 | | Federal Aviation Regulations; and (B) persons who engage in | 4 | | the modification, replacement, repair, and maintenance of | 5 | | aircraft engines or power plants without regard to whether or | 6 | | not those persons meet the qualifications of item (A). | 7 | | The changes made to this paragraph (29) by Public Act | 8 | | 98-534 are declarative of existing law. It is the intent of the | 9 | | General Assembly that the exemption under this paragraph (29) | 10 | | applies continuously from January 1, 2010 through December 31, | 11 | | 2024; however, no claim for credit or refund is allowed for | 12 | | taxes paid as a result of the disallowance of this exemption on | 13 | | or after January 1, 2015 and prior to February 5, 2020 (the | 14 | | effective date of Public Act 101-629). | 15 | | (30) Beginning January 1, 2017 and through December 31, | 16 | | 2026, menstrual pads, tampons, and menstrual cups. | 17 | | (31) Tangible personal property transferred to a purchaser | 18 | | who is exempt from tax by operation of federal law. This | 19 | | paragraph is exempt from the provisions of Section 3-55. | 20 | | (32) Qualified tangible personal property used in the | 21 | | construction or operation of a data center that has been | 22 | | granted a certificate of exemption by the Department of | 23 | | Commerce and Economic Opportunity, whether that tangible | 24 | | personal property is purchased by the owner, operator, or | 25 | | tenant of the data center or by a contractor or subcontractor | 26 | | of the owner, operator, or tenant. Data centers that would |
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| 1 | | have qualified for a certificate of exemption prior to January | 2 | | 1, 2020 had Public Act 101-31 been in effect, may apply for and | 3 | | obtain an exemption for subsequent purchases of computer | 4 | | equipment or enabling software purchased or leased to upgrade, | 5 | | supplement, or replace computer equipment or enabling software | 6 | | purchased or leased in the original investment that would have | 7 | | qualified. | 8 | | The Department of Commerce and Economic Opportunity shall | 9 | | grant a certificate of exemption under this item (32) to | 10 | | qualified data centers as defined by Section 605-1025 of the | 11 | | Department of Commerce and Economic Opportunity Law of the | 12 | | Civil Administrative Code of Illinois. | 13 | | For the purposes of this item (32): | 14 | | "Data center" means a building or a series of | 15 | | buildings rehabilitated or constructed to house working | 16 | | servers in one physical location or multiple sites within | 17 | | the State of Illinois. | 18 | | "Qualified tangible personal property" means: | 19 | | electrical systems and equipment; climate control and | 20 | | chilling equipment and systems; mechanical systems and | 21 | | equipment; monitoring and secure systems; emergency | 22 | | generators; hardware; computers; servers; data storage | 23 | | devices; network connectivity equipment; racks; cabinets; | 24 | | telecommunications cabling infrastructure; raised floor | 25 | | systems; peripheral components or systems; software; | 26 | | mechanical, electrical, or plumbing systems; battery |
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| 1 | | systems; cooling systems and towers; temperature control | 2 | | systems; other cabling; and other data center | 3 | | infrastructure equipment and systems necessary to operate | 4 | | qualified tangible personal property, including fixtures; | 5 | | and component parts of any of the foregoing, including | 6 | | installation, maintenance, repair, refurbishment, and | 7 | | replacement of qualified tangible personal property to | 8 | | generate, transform, transmit, distribute, or manage | 9 | | electricity necessary to operate qualified tangible | 10 | | personal property; and all other tangible personal | 11 | | property that is essential to the operations of a computer | 12 | | data center. The term "qualified tangible personal | 13 | | property" also includes building materials physically | 14 | | incorporated into in to the qualifying data center. To | 15 | | document the exemption allowed under this Section, the | 16 | | retailer must obtain from the purchaser a copy of the | 17 | | certificate of eligibility issued by the Department of | 18 | | Commerce and Economic Opportunity. | 19 | | This item (32) is exempt from the provisions of Section | 20 | | 3-55. | 21 | | (33) Beginning July 1, 2022, breast pumps, breast pump | 22 | | collection and storage supplies, and breast pump kits. This | 23 | | item (33) is exempt from the provisions of Section 3-55. As | 24 | | used in this item (33): | 25 | | "Breast pump" means an electrically controlled or | 26 | | manually controlled pump device designed or marketed to be |
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| 1 | | used to express milk from a human breast during lactation, | 2 | | including the pump device and any battery, AC adapter, or | 3 | | other power supply unit that is used to power the pump | 4 | | device and is packaged and sold with the pump device at the | 5 | | time of sale. | 6 | | "Breast pump collection and storage supplies" means | 7 | | items of tangible personal property designed or marketed | 8 | | to be used in conjunction with a breast pump to collect | 9 | | milk expressed from a human breast and to store collected | 10 | | milk until it is ready for consumption. | 11 | | "Breast pump collection and storage supplies" | 12 | | includes, but is not limited to: breast shields and breast | 13 | | shield connectors; breast pump tubes and tubing adapters; | 14 | | breast pump valves and membranes; backflow protectors and | 15 | | backflow protector adaptors; bottles and bottle caps | 16 | | specific to the operation of the breast pump; and breast | 17 | | milk storage bags. | 18 | | "Breast pump collection and storage supplies" does not | 19 | | include: (1) bottles and bottle caps not specific to the | 20 | | operation of the breast pump; (2) breast pump travel bags | 21 | | and other similar carrying accessories, including ice | 22 | | packs, labels, and other similar products; (3) breast pump | 23 | | cleaning supplies; (4) nursing bras, bra pads, breast | 24 | | shells, and other similar products; and (5) creams, | 25 | | ointments, and other similar products that relieve | 26 | | breastfeeding-related symptoms or conditions of the |
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| 1 | | breasts or nipples, unless sold as part of a breast pump | 2 | | kit that is pre-packaged by the breast pump manufacturer | 3 | | or distributor. | 4 | | "Breast pump kit" means a kit that: (1) contains no | 5 | | more than a breast pump, breast pump collection and | 6 | | storage supplies, a rechargeable battery for operating the | 7 | | breast pump, a breastmilk cooler, bottle stands, ice | 8 | | packs, and a breast pump carrying case; and (2) is | 9 | | pre-packaged as a breast pump kit by the breast pump | 10 | | manufacturer or distributor. | 11 | | (34) Tangible personal property sold by or on behalf of | 12 | | the State Treasurer pursuant to the Revised Uniform Unclaimed | 13 | | Property Act. This item (34) is exempt from the provisions of | 14 | | Section 3-55. | 15 | | (35) Beginning on January 1, 2024, tangible personal | 16 | | property purchased by an active duty member of the armed | 17 | | forces of the United States who presents valid military | 18 | | identification and purchases the property using a form of | 19 | | payment where the federal government is the payor. The member | 20 | | of the armed forces must complete, at the point of sale, a form | 21 | | prescribed by the Department of Revenue documenting that the | 22 | | transaction is eligible for the exemption under this | 23 | | paragraph. Retailers must keep the form as documentation of | 24 | | the exemption in their records for a period of not less than 6 | 25 | | years. "Armed forces of the United States" means the United | 26 | | States Army, Navy, Air Force, Marine Corps, or Coast Guard. |
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| 1 | | This paragraph is exempt from the provisions of Section 3-55. | 2 | | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | 3 | | Section 70-15, eff. 4-19-22; 102-700, Article 75, Section | 4 | | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | 5 | | Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15, | 6 | | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | 7 | | revised 12-12-23.) | 8 | | Section 15. The Retailers' Occupation Tax Act is amended | 9 | | by changing Section 2-5 as follows: | 10 | | (35 ILCS 120/2-5) | 11 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from | 12 | | the sale of the following tangible personal property are | 13 | | exempt from the tax imposed by this Act: | 14 | | (1) Farm chemicals. | 15 | | (2) Farm machinery and equipment, both new and used, | 16 | | including that manufactured on special order, certified by | 17 | | the purchaser to be used primarily for production | 18 | | agriculture or State or federal agricultural programs, | 19 | | including individual replacement parts for the machinery | 20 | | and equipment, including machinery and equipment purchased | 21 | | for lease, and including implements of husbandry defined | 22 | | in Section 1-130 of the Illinois Vehicle Code, farm | 23 | | machinery and agricultural chemical and fertilizer | 24 | | spreaders, and nurse wagons required to be registered |
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| 1 | | under Section 3-809 of the Illinois Vehicle Code, but | 2 | | excluding other motor vehicles required to be registered | 3 | | under the Illinois Vehicle Code. Horticultural polyhouses | 4 | | or hoop houses used for propagating, growing, or | 5 | | overwintering plants shall be considered farm machinery | 6 | | and equipment under this item (2). Agricultural chemical | 7 | | tender tanks and dry boxes shall include units sold | 8 | | separately from a motor vehicle required to be licensed | 9 | | and units sold mounted on a motor vehicle required to be | 10 | | licensed, if the selling price of the tender is separately | 11 | | stated. | 12 | | Farm machinery and equipment shall include precision | 13 | | farming equipment that is installed or purchased to be | 14 | | installed on farm machinery and equipment including, but | 15 | | not limited to, tractors, harvesters, sprayers, planters, | 16 | | seeders, or spreaders. Precision farming equipment | 17 | | includes, but is not limited to, soil testing sensors, | 18 | | computers, monitors, software, global positioning and | 19 | | mapping systems, and other such equipment. | 20 | | Farm machinery and equipment also includes computers, | 21 | | sensors, software, and related equipment used primarily in | 22 | | the computer-assisted operation of production agriculture | 23 | | facilities, equipment, and activities such as, but not | 24 | | limited to, the collection, monitoring, and correlation of | 25 | | animal and crop data for the purpose of formulating animal | 26 | | diets and agricultural chemicals. |
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| 1 | | Beginning on January 1, 2024, farm machinery and | 2 | | equipment also includes electrical power generation | 3 | | equipment used primarily for production agriculture. | 4 | | This item (2) is exempt from the provisions of Section | 5 | | 2-70. | 6 | | (3) Until July 1, 2003, distillation machinery and | 7 | | equipment, sold as a unit or kit, assembled or installed | 8 | | by the retailer, certified by the user to be used only for | 9 | | the production of ethyl alcohol that will be used for | 10 | | consumption as motor fuel or as a component of motor fuel | 11 | | for the personal use of the user, and not subject to sale | 12 | | or resale. | 13 | | (4) Until July 1, 2003 and beginning again September | 14 | | 1, 2004 through August 30, 2014, graphic arts machinery | 15 | | and equipment, including repair and replacement parts, | 16 | | both new and used, and including that manufactured on | 17 | | special order or purchased for lease, certified by the | 18 | | purchaser to be used primarily for graphic arts | 19 | | production. Equipment includes chemicals or chemicals | 20 | | acting as catalysts but only if the chemicals or chemicals | 21 | | acting as catalysts effect a direct and immediate change | 22 | | upon a graphic arts product. Beginning on July 1, 2017, | 23 | | graphic arts machinery and equipment is included in the | 24 | | manufacturing and assembling machinery and equipment | 25 | | exemption under paragraph (14). | 26 | | (5) A motor vehicle that is used for automobile |
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| 1 | | renting, as defined in the Automobile Renting Occupation | 2 | | and Use Tax Act. This paragraph is exempt from the | 3 | | provisions of Section 2-70. | 4 | | (6) Personal property sold by a teacher-sponsored | 5 | | student organization affiliated with an elementary or | 6 | | secondary school located in Illinois. | 7 | | (7) Until July 1, 2003, proceeds of that portion of | 8 | | the selling price of a passenger car the sale of which is | 9 | | subject to the Replacement Vehicle Tax. | 10 | | (8) Personal property sold to an Illinois county fair | 11 | | association for use in conducting, operating, or promoting | 12 | | the county fair. | 13 | | (9) Personal property sold to a not-for-profit arts or | 14 | | cultural organization that establishes, by proof required | 15 | | by the Department by rule, that it has received an | 16 | | exemption under Section 501(c)(3) of the Internal Revenue | 17 | | Code and that is organized and operated primarily for the | 18 | | presentation or support of arts or cultural programming, | 19 | | activities, or services. These organizations include, but | 20 | | are not limited to, music and dramatic arts organizations | 21 | | such as symphony orchestras and theatrical groups, arts | 22 | | and cultural service organizations, local arts councils, | 23 | | visual arts organizations, and media arts organizations. | 24 | | On and after July 1, 2001 (the effective date of Public Act | 25 | | 92-35), however, an entity otherwise eligible for this | 26 | | exemption shall not make tax-free purchases unless it has |
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| 1 | | an active identification number issued by the Department. | 2 | | (10) Personal property sold by a corporation, society, | 3 | | association, foundation, institution, or organization, | 4 | | other than a limited liability company, that is organized | 5 | | and operated as a not-for-profit service enterprise for | 6 | | the benefit of persons 65 years of age or older if the | 7 | | personal property was not purchased by the enterprise for | 8 | | the purpose of resale by the enterprise. | 9 | | (11) Except as otherwise provided in this Section, | 10 | | personal property sold to a governmental body, to a | 11 | | corporation, society, association, foundation, or | 12 | | institution organized and operated exclusively for | 13 | | charitable, religious, or educational purposes, or to a | 14 | | not-for-profit corporation, society, association, | 15 | | foundation, institution, or organization that has no | 16 | | compensated officers or employees and that is organized | 17 | | and operated primarily for the recreation of persons 55 | 18 | | years of age or older. A limited liability company may | 19 | | qualify for the exemption under this paragraph only if the | 20 | | limited liability company is organized and operated | 21 | | exclusively for educational purposes. On and after July 1, | 22 | | 1987, however, no entity otherwise eligible for this | 23 | | exemption shall make tax-free purchases unless it has an | 24 | | active identification number issued by the Department. | 25 | | (12) (Blank). | 26 | | (12-5) On and after July 1, 2003 and through June 30, |
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| 1 | | 2004, motor vehicles of the second division with a gross | 2 | | vehicle weight in excess of 8,000 pounds that are subject | 3 | | to the commercial distribution fee imposed under Section | 4 | | 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, | 5 | | 2004 and through June 30, 2005, the use in this State of | 6 | | motor vehicles of the second division: (i) with a gross | 7 | | vehicle weight rating in excess of 8,000 pounds; (ii) that | 8 | | are subject to the commercial distribution fee imposed | 9 | | under Section 3-815.1 of the Illinois Vehicle Code; and | 10 | | (iii) that are primarily used for commercial purposes. | 11 | | Through June 30, 2005, this exemption applies to repair | 12 | | and replacement parts added after the initial purchase of | 13 | | such a motor vehicle if that motor vehicle is used in a | 14 | | manner that would qualify for the rolling stock exemption | 15 | | otherwise provided for in this Act. For purposes of this | 16 | | paragraph, "used for commercial purposes" means the | 17 | | transportation of persons or property in furtherance of | 18 | | any commercial or industrial enterprise whether for-hire | 19 | | or not. | 20 | | (13) Proceeds from sales to owners, lessors, or | 21 | | shippers of tangible personal property that is utilized by | 22 | | interstate carriers for hire for use as rolling stock | 23 | | moving in interstate commerce and equipment operated by a | 24 | | telecommunications provider, licensed as a common carrier | 25 | | by the Federal Communications Commission, which is | 26 | | permanently installed in or affixed to aircraft moving in |
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| 1 | | interstate commerce. | 2 | | (14) Machinery and equipment that will be used by the | 3 | | purchaser, or a lessee of the purchaser, primarily in the | 4 | | process of manufacturing or assembling tangible personal | 5 | | property for wholesale or retail sale or lease, whether | 6 | | the sale or lease is made directly by the manufacturer or | 7 | | by some other person, whether the materials used in the | 8 | | process are owned by the manufacturer or some other | 9 | | person, or whether the sale or lease is made apart from or | 10 | | as an incident to the seller's engaging in the service | 11 | | occupation of producing machines, tools, dies, jigs, | 12 | | patterns, gauges, or other similar items of no commercial | 13 | | value on special order for a particular purchaser. The | 14 | | exemption provided by this paragraph (14) does not include | 15 | | machinery and equipment used in (i) the generation of | 16 | | electricity for wholesale or retail sale; (ii) the | 17 | | generation or treatment of natural or artificial gas for | 18 | | wholesale or retail sale that is delivered to customers | 19 | | through pipes, pipelines, or mains; or (iii) the treatment | 20 | | of water for wholesale or retail sale that is delivered to | 21 | | customers through pipes, pipelines, or mains. The | 22 | | provisions of Public Act 98-583 are declaratory of | 23 | | existing law as to the meaning and scope of this | 24 | | exemption. Beginning on July 1, 2017, the exemption | 25 | | provided by this paragraph (14) includes, but is not | 26 | | limited to, graphic arts machinery and equipment, as |
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| 1 | | defined in paragraph (4) of this Section. | 2 | | (15) Proceeds of mandatory service charges separately | 3 | | stated on customers' bills for purchase and consumption of | 4 | | food and beverages, to the extent that the proceeds of the | 5 | | service charge are in fact turned over as tips or as a | 6 | | substitute for tips to the employees who participate | 7 | | directly in preparing, serving, hosting or cleaning up the | 8 | | food or beverage function with respect to which the | 9 | | service charge is imposed. | 10 | | (16) Tangible personal property sold to a purchaser if | 11 | | the purchaser is exempt from use tax by operation of | 12 | | federal law. This paragraph is exempt from the provisions | 13 | | of Section 2-70. | 14 | | (17) Tangible personal property sold to a common | 15 | | carrier by rail or motor that receives the physical | 16 | | possession of the property in Illinois and that transports | 17 | | the property, or shares with another common carrier in the | 18 | | transportation of the property, out of Illinois on a | 19 | | standard uniform bill of lading showing the seller of the | 20 | | property as the shipper or consignor of the property to a | 21 | | destination outside Illinois, for use outside Illinois. | 22 | | (18) Legal tender, currency, medallions, or gold or | 23 | | silver coinage issued by the State of Illinois, the | 24 | | government of the United States of America, or the | 25 | | government of any foreign country, and bullion. | 26 | | (19) Until July 1, 2003, oil field exploration, |
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| 1 | | drilling, and production equipment, including (i) rigs and | 2 | | parts of rigs, rotary rigs, cable tool rigs, and workover | 3 | | rigs, (ii) pipe and tubular goods, including casing and | 4 | | drill strings, (iii) pumps and pump-jack units, (iv) | 5 | | storage tanks and flow lines, (v) any individual | 6 | | replacement part for oil field exploration, drilling, and | 7 | | production equipment, and (vi) machinery and equipment | 8 | | purchased for lease; but excluding motor vehicles required | 9 | | to be registered under the Illinois Vehicle Code. | 10 | | (20) Photoprocessing machinery and equipment, | 11 | | including repair and replacement parts, both new and used, | 12 | | including that manufactured on special order, certified by | 13 | | the purchaser to be used primarily for photoprocessing, | 14 | | and including photoprocessing machinery and equipment | 15 | | purchased for lease. | 16 | | (21) Until July 1, 2028, coal and aggregate | 17 | | exploration, mining, off-highway hauling, processing, | 18 | | maintenance, and reclamation equipment, including | 19 | | replacement parts and equipment, and including equipment | 20 | | purchased for lease, but excluding motor vehicles required | 21 | | to be registered under the Illinois Vehicle Code. The | 22 | | changes made to this Section by Public Act 97-767 apply on | 23 | | and after July 1, 2003, but no claim for credit or refund | 24 | | is allowed on or after August 16, 2013 (the effective date | 25 | | of Public Act 98-456) for such taxes paid during the | 26 | | period beginning July 1, 2003 and ending on August 16, |
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| 1 | | 2013 (the effective date of Public Act 98-456). | 2 | | (22) Until June 30, 2013, fuel and petroleum products | 3 | | sold to or used by an air carrier, certified by the carrier | 4 | | to be used for consumption, shipment, or storage in the | 5 | | conduct of its business as an air common carrier, for a | 6 | | flight destined for or returning from a location or | 7 | | locations outside the United States without regard to | 8 | | previous or subsequent domestic stopovers. | 9 | | Beginning July 1, 2013, fuel and petroleum products | 10 | | sold to or used by an air carrier, certified by the carrier | 11 | | to be used for consumption, shipment, or storage in the | 12 | | conduct of its business as an air common carrier, for a | 13 | | flight that (i) is engaged in foreign trade or is engaged | 14 | | in trade between the United States and any of its | 15 | | possessions and (ii) transports at least one individual or | 16 | | package for hire from the city of origination to the city | 17 | | of final destination on the same aircraft, without regard | 18 | | to a change in the flight number of that aircraft. | 19 | | (23) A transaction in which the purchase order is | 20 | | received by a florist who is located outside Illinois, but | 21 | | who has a florist located in Illinois deliver the property | 22 | | to the purchaser or the purchaser's donee in Illinois. | 23 | | (24) Fuel consumed or used in the operation of ships, | 24 | | barges, or vessels that are used primarily in or for the | 25 | | transportation of property or the conveyance of persons | 26 | | for hire on rivers bordering on this State if the fuel is |
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| 1 | | delivered by the seller to the purchaser's barge, ship, or | 2 | | vessel while it is afloat upon that bordering river. | 3 | | (25) Except as provided in item (25-5) of this | 4 | | Section, a motor vehicle sold in this State to a | 5 | | nonresident even though the motor vehicle is delivered to | 6 | | the nonresident in this State, if the motor vehicle is not | 7 | | to be titled in this State, and if a drive-away permit is | 8 | | issued to the motor vehicle as provided in Section 3-603 | 9 | | of the Illinois Vehicle Code or if the nonresident | 10 | | purchaser has vehicle registration plates to transfer to | 11 | | the motor vehicle upon returning to his or her home state. | 12 | | The issuance of the drive-away permit or having the | 13 | | out-of-state registration plates to be transferred is | 14 | | prima facie evidence that the motor vehicle will not be | 15 | | titled in this State. | 16 | | (25-5) The exemption under item (25) does not apply if | 17 | | the state in which the motor vehicle will be titled does | 18 | | not allow a reciprocal exemption for a motor vehicle sold | 19 | | and delivered in that state to an Illinois resident but | 20 | | titled in Illinois. The tax collected under this Act on | 21 | | the sale of a motor vehicle in this State to a resident of | 22 | | another state that does not allow a reciprocal exemption | 23 | | shall be imposed at a rate equal to the state's rate of tax | 24 | | on taxable property in the state in which the purchaser is | 25 | | a resident, except that the tax shall not exceed the tax | 26 | | that would otherwise be imposed under this Act. At the |
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| 1 | | time of the sale, the purchaser shall execute a statement, | 2 | | signed under penalty of perjury, of his or her intent to | 3 | | title the vehicle in the state in which the purchaser is a | 4 | | resident within 30 days after the sale and of the fact of | 5 | | the payment to the State of Illinois of tax in an amount | 6 | | equivalent to the state's rate of tax on taxable property | 7 | | in his or her state of residence and shall submit the | 8 | | statement to the appropriate tax collection agency in his | 9 | | or her state of residence. In addition, the retailer must | 10 | | retain a signed copy of the statement in his or her | 11 | | records. Nothing in this item shall be construed to | 12 | | require the removal of the vehicle from this state | 13 | | following the filing of an intent to title the vehicle in | 14 | | the purchaser's state of residence if the purchaser titles | 15 | | the vehicle in his or her state of residence within 30 days | 16 | | after the date of sale. The tax collected under this Act in | 17 | | accordance with this item (25-5) shall be proportionately | 18 | | distributed as if the tax were collected at the 6.25% | 19 | | general rate imposed under this Act. | 20 | | (25-7) Beginning on July 1, 2007, no tax is imposed | 21 | | under this Act on the sale of an aircraft, as defined in | 22 | | Section 3 of the Illinois Aeronautics Act, if all of the | 23 | | following conditions are met: | 24 | | (1) the aircraft leaves this State within 15 days | 25 | | after the later of either the issuance of the final | 26 | | billing for the sale of the aircraft, or the |
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| 1 | | authorized approval for return to service, completion | 2 | | of the maintenance record entry, and completion of the | 3 | | test flight and ground test for inspection, as | 4 | | required by 14 CFR 91.407; | 5 | | (2) the aircraft is not based or registered in | 6 | | this State after the sale of the aircraft; and | 7 | | (3) the seller retains in his or her books and | 8 | | records and provides to the Department a signed and | 9 | | dated certification from the purchaser, on a form | 10 | | prescribed by the Department, certifying that the | 11 | | requirements of this item (25-7) are met. The | 12 | | certificate must also include the name and address of | 13 | | the purchaser, the address of the location where the | 14 | | aircraft is to be titled or registered, the address of | 15 | | the primary physical location of the aircraft, and | 16 | | other information that the Department may reasonably | 17 | | require. | 18 | | For purposes of this item (25-7): | 19 | | "Based in this State" means hangared, stored, or | 20 | | otherwise used, excluding post-sale customizations as | 21 | | defined in this Section, for 10 or more days in each | 22 | | 12-month period immediately following the date of the sale | 23 | | of the aircraft. | 24 | | "Registered in this State" means an aircraft | 25 | | registered with the Department of Transportation, | 26 | | Aeronautics Division, or titled or registered with the |
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| 1 | | Federal Aviation Administration to an address located in | 2 | | this State. | 3 | | This paragraph (25-7) is exempt from the provisions of | 4 | | Section 2-70. | 5 | | (26) Semen used for artificial insemination of | 6 | | livestock for direct agricultural production. | 7 | | (27) Horses, or interests in horses, registered with | 8 | | and meeting the requirements of any of the Arabian Horse | 9 | | Club Registry of America, Appaloosa Horse Club, American | 10 | | Quarter Horse Association, United States Trotting | 11 | | Association, or Jockey Club, as appropriate, used for | 12 | | purposes of breeding or racing for prizes. This item (27) | 13 | | is exempt from the provisions of Section 2-70, and the | 14 | | exemption provided for under this item (27) applies for | 15 | | all periods beginning May 30, 1995, but no claim for | 16 | | credit or refund is allowed on or after January 1, 2008 | 17 | | (the effective date of Public Act 95-88) for such taxes | 18 | | paid during the period beginning May 30, 2000 and ending | 19 | | on January 1, 2008 (the effective date of Public Act | 20 | | 95-88). | 21 | | (28) Computers and communications equipment utilized | 22 | | for any hospital purpose and equipment used in the | 23 | | diagnosis, analysis, or treatment of hospital patients | 24 | | sold to a lessor who leases the equipment, under a lease of | 25 | | one year or longer executed or in effect at the time of the | 26 | | purchase, to a hospital that has been issued an active tax |
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| 1 | | exemption identification number by the Department under | 2 | | Section 1g of this Act. | 3 | | (29) Personal property sold to a lessor who leases the | 4 | | property, under a lease of one year or longer executed or | 5 | | in effect at the time of the purchase, to a governmental | 6 | | body that has been issued an active tax exemption | 7 | | identification number by the Department under Section 1g | 8 | | of this Act. | 9 | | (30) Beginning with taxable years ending on or after | 10 | | December 31, 1995 and ending with taxable years ending on | 11 | | or before December 31, 2004, personal property that is | 12 | | donated for disaster relief to be used in a State or | 13 | | federally declared disaster area in Illinois or bordering | 14 | | Illinois by a manufacturer or retailer that is registered | 15 | | in this State to a corporation, society, association, | 16 | | foundation, or institution that has been issued a sales | 17 | | tax exemption identification number by the Department that | 18 | | assists victims of the disaster who reside within the | 19 | | declared disaster area. | 20 | | (31) Beginning with taxable years ending on or after | 21 | | December 31, 1995 and ending with taxable years ending on | 22 | | or before December 31, 2004, personal property that is | 23 | | used in the performance of infrastructure repairs in this | 24 | | State, including , but not limited to , municipal roads and | 25 | | streets, access roads, bridges, sidewalks, waste disposal | 26 | | systems, water and sewer line extensions, water |
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| 1 | | distribution and purification facilities, storm water | 2 | | drainage and retention facilities, and sewage treatment | 3 | | facilities, resulting from a State or federally declared | 4 | | disaster in Illinois or bordering Illinois when such | 5 | | repairs are initiated on facilities located in the | 6 | | declared disaster area within 6 months after the disaster. | 7 | | (32) Beginning July 1, 1999, game or game birds sold | 8 | | at a "game breeding and hunting preserve area" as that | 9 | | term is used in the Wildlife Code. This paragraph is | 10 | | exempt from the provisions of Section 2-70. | 11 | | (33) A motor vehicle, as that term is defined in | 12 | | Section 1-146 of the Illinois Vehicle Code, that is | 13 | | donated to a corporation, limited liability company, | 14 | | society, association, foundation, or institution that is | 15 | | determined by the Department to be organized and operated | 16 | | exclusively for educational purposes. For purposes of this | 17 | | exemption, "a corporation, limited liability company, | 18 | | society, association, foundation, or institution organized | 19 | | and operated exclusively for educational purposes" means | 20 | | all tax-supported public schools, private schools that | 21 | | offer systematic instruction in useful branches of | 22 | | learning by methods common to public schools and that | 23 | | compare favorably in their scope and intensity with the | 24 | | course of study presented in tax-supported schools, and | 25 | | vocational or technical schools or institutes organized | 26 | | and operated exclusively to provide a course of study of |
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| 1 | | not less than 6 weeks duration and designed to prepare | 2 | | individuals to follow a trade or to pursue a manual, | 3 | | technical, mechanical, industrial, business, or commercial | 4 | | occupation. | 5 | | (34) Beginning January 1, 2000, personal property, | 6 | | including food, purchased through fundraising events for | 7 | | the benefit of a public or private elementary or secondary | 8 | | school, a group of those schools, or one or more school | 9 | | districts if the events are sponsored by an entity | 10 | | recognized by the school district that consists primarily | 11 | | of volunteers and includes parents and teachers of the | 12 | | school children. This paragraph does not apply to | 13 | | fundraising events (i) for the benefit of private home | 14 | | instruction or (ii) for which the fundraising entity | 15 | | purchases the personal property sold at the events from | 16 | | another individual or entity that sold the property for | 17 | | the purpose of resale by the fundraising entity and that | 18 | | profits from the sale to the fundraising entity. This | 19 | | paragraph is exempt from the provisions of Section 2-70. | 20 | | (35) Beginning January 1, 2000 and through December | 21 | | 31, 2001, new or used automatic vending machines that | 22 | | prepare and serve hot food and beverages, including | 23 | | coffee, soup, and other items, and replacement parts for | 24 | | these machines. Beginning January 1, 2002 and through June | 25 | | 30, 2003, machines and parts for machines used in | 26 | | commercial, coin-operated amusement and vending business |
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| 1 | | if a use or occupation tax is paid on the gross receipts | 2 | | derived from the use of the commercial, coin-operated | 3 | | amusement and vending machines. This paragraph is exempt | 4 | | from the provisions of Section 2-70. | 5 | | (35-5) Beginning August 23, 2001 and through June 30, | 6 | | 2016, food for human consumption that is to be consumed | 7 | | off the premises where it is sold (other than alcoholic | 8 | | beverages, soft drinks, and food that has been prepared | 9 | | for immediate consumption) and prescription and | 10 | | nonprescription medicines, drugs, medical appliances, and | 11 | | insulin, urine testing materials, syringes, and needles | 12 | | used by diabetics, for human use, when purchased for use | 13 | | by a person receiving medical assistance under Article V | 14 | | of the Illinois Public Aid Code who resides in a licensed | 15 | | long-term care facility, as defined in the Nursing Home | 16 | | Care Act, or a licensed facility as defined in the ID/DD | 17 | | Community Care Act, the MC/DD Act, or the Specialized | 18 | | Mental Health Rehabilitation Act of 2013. | 19 | | (36) Beginning August 2, 2001, computers and | 20 | | communications equipment utilized for any hospital purpose | 21 | | and equipment used in the diagnosis, analysis, or | 22 | | treatment of hospital patients sold to a lessor who leases | 23 | | the equipment, under a lease of one year or longer | 24 | | executed or in effect at the time of the purchase, to a | 25 | | hospital that has been issued an active tax exemption | 26 | | identification number by the Department under Section 1g |
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| 1 | | of this Act. This paragraph is exempt from the provisions | 2 | | of Section 2-70. | 3 | | (37) Beginning August 2, 2001, personal property sold | 4 | | to a lessor who leases the property, under a lease of one | 5 | | year or longer executed or in effect at the time of the | 6 | | purchase, to a governmental body that has been issued an | 7 | | active tax exemption identification number by the | 8 | | Department under Section 1g of this Act. This paragraph is | 9 | | exempt from the provisions of Section 2-70. | 10 | | (38) Beginning on January 1, 2002 and through June 30, | 11 | | 2016, tangible personal property purchased from an | 12 | | Illinois retailer by a taxpayer engaged in centralized | 13 | | purchasing activities in Illinois who will, upon receipt | 14 | | of the property in Illinois, temporarily store the | 15 | | property in Illinois (i) for the purpose of subsequently | 16 | | transporting it outside this State for use or consumption | 17 | | thereafter solely outside this State or (ii) for the | 18 | | purpose of being processed, fabricated, or manufactured | 19 | | into, attached to, or incorporated into other tangible | 20 | | personal property to be transported outside this State and | 21 | | thereafter used or consumed solely outside this State. The | 22 | | Director of Revenue shall, pursuant to rules adopted in | 23 | | accordance with the Illinois Administrative Procedure Act, | 24 | | issue a permit to any taxpayer in good standing with the | 25 | | Department who is eligible for the exemption under this | 26 | | paragraph (38). The permit issued under this paragraph |
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| 1 | | (38) shall authorize the holder, to the extent and in the | 2 | | manner specified in the rules adopted under this Act, to | 3 | | purchase tangible personal property from a retailer exempt | 4 | | from the taxes imposed by this Act. Taxpayers shall | 5 | | maintain all necessary books and records to substantiate | 6 | | the use and consumption of all such tangible personal | 7 | | property outside of the State of Illinois. | 8 | | (39) Beginning January 1, 2008, tangible personal | 9 | | property used in the construction or maintenance of a | 10 | | community water supply, as defined under Section 3.145 of | 11 | | the Environmental Protection Act, that is operated by a | 12 | | not-for-profit corporation that holds a valid water supply | 13 | | permit issued under Title IV of the Environmental | 14 | | Protection Act. This paragraph is exempt from the | 15 | | provisions of Section 2-70. | 16 | | (40) Beginning January 1, 2010 and continuing through | 17 | | December 31, 2029, materials, parts, equipment, | 18 | | components, and furnishings incorporated into or upon an | 19 | | aircraft as part of the modification, refurbishment, | 20 | | completion, replacement, repair, or maintenance of the | 21 | | aircraft. This exemption includes consumable supplies used | 22 | | in the modification, refurbishment, completion, | 23 | | replacement, repair, and maintenance of aircraft. However, | 24 | | until January 1, 2024, this exemption excludes any | 25 | | materials, parts, equipment, components, and consumable | 26 | | supplies used in the modification, replacement, repair, |
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| 1 | | and maintenance of aircraft engines or power plants, | 2 | | whether such engines or power plants are installed or | 3 | | uninstalled upon any such aircraft. "Consumable supplies" | 4 | | include, but are not limited to, adhesive, tape, | 5 | | sandpaper, general purpose lubricants, cleaning solution, | 6 | | latex gloves, and protective films. | 7 | | Beginning January 1, 2010 and continuing through | 8 | | December 31, 2023, this exemption applies only to the sale | 9 | | of qualifying tangible personal property to persons who | 10 | | modify, refurbish, complete, replace, or maintain an | 11 | | aircraft and who (i) hold an Air Agency Certificate and | 12 | | are empowered to operate an approved repair station by the | 13 | | Federal Aviation Administration, (ii) have a Class IV | 14 | | Rating, and (iii) conduct operations in accordance with | 15 | | Part 145 of the Federal Aviation Regulations. The | 16 | | exemption does not include aircraft operated by a | 17 | | commercial air carrier providing scheduled passenger air | 18 | | service pursuant to authority issued under Part 121 or | 19 | | Part 129 of the Federal Aviation Regulations. From January | 20 | | 1, 2024 through December 31, 2029, this exemption applies | 21 | | only to the sale use of qualifying tangible personal | 22 | | property to by : (A) persons who modify, refurbish, | 23 | | complete, repair, replace, or maintain aircraft and who | 24 | | (i) hold an Air Agency Certificate and are empowered to | 25 | | operate an approved repair station by the Federal Aviation | 26 | | Administration, (ii) have a Class IV Rating, and (iii) |
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| 1 | | conduct operations in accordance with Part 145 of the | 2 | | Federal Aviation Regulations; and (B) persons who engage | 3 | | in the modification, replacement, repair, and maintenance | 4 | | of aircraft engines or power plants without regard to | 5 | | whether or not those persons meet the qualifications of | 6 | | item (A). | 7 | | The changes made to this paragraph (40) by Public Act | 8 | | 98-534 are declarative of existing law. It is the intent | 9 | | of the General Assembly that the exemption under this | 10 | | paragraph (40) applies continuously from January 1, 2010 | 11 | | through December 31, 2024; however, no claim for credit or | 12 | | refund is allowed for taxes paid as a result of the | 13 | | disallowance of this exemption on or after January 1, 2015 | 14 | | and prior to February 5, 2020 (the effective date of | 15 | | Public Act 101-629). | 16 | | (41) Tangible personal property sold to a | 17 | | public-facilities corporation, as described in Section | 18 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 19 | | constructing or furnishing a municipal convention hall, | 20 | | but only if the legal title to the municipal convention | 21 | | hall is transferred to the municipality without any | 22 | | further consideration by or on behalf of the municipality | 23 | | at the time of the completion of the municipal convention | 24 | | hall or upon the retirement or redemption of any bonds or | 25 | | other debt instruments issued by the public-facilities | 26 | | corporation in connection with the development of the |
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| 1 | | municipal convention hall. This exemption includes | 2 | | existing public-facilities corporations as provided in | 3 | | Section 11-65-25 of the Illinois Municipal Code. This | 4 | | paragraph is exempt from the provisions of Section 2-70. | 5 | | (42) Beginning January 1, 2017 and through December | 6 | | 31, 2026, menstrual pads, tampons, and menstrual cups. | 7 | | (43) Merchandise that is subject to the Rental | 8 | | Purchase Agreement Occupation and Use Tax. The purchaser | 9 | | must certify that the item is purchased to be rented | 10 | | subject to a rental-purchase rental purchase agreement, as | 11 | | defined in the Rental-Purchase Rental Purchase Agreement | 12 | | Act, and provide proof of registration under the Rental | 13 | | Purchase Agreement Occupation and Use Tax Act. This | 14 | | paragraph is exempt from the provisions of Section 2-70. | 15 | | (44) Qualified tangible personal property used in the | 16 | | construction or operation of a data center that has been | 17 | | granted a certificate of exemption by the Department of | 18 | | Commerce and Economic Opportunity, whether that tangible | 19 | | personal property is purchased by the owner, operator, or | 20 | | tenant of the data center or by a contractor or | 21 | | subcontractor of the owner, operator, or tenant. Data | 22 | | centers that would have qualified for a certificate of | 23 | | exemption prior to January 1, 2020 had Public Act 101-31 | 24 | | been in effect, may apply for and obtain an exemption for | 25 | | subsequent purchases of computer equipment or enabling | 26 | | software purchased or leased to upgrade, supplement, or |
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| 1 | | replace computer equipment or enabling software purchased | 2 | | or leased in the original investment that would have | 3 | | qualified. | 4 | | The Department of Commerce and Economic Opportunity | 5 | | shall grant a certificate of exemption under this item | 6 | | (44) to qualified data centers as defined by Section | 7 | | 605-1025 of the Department of Commerce and Economic | 8 | | Opportunity Law of the Civil Administrative Code of | 9 | | Illinois. | 10 | | For the purposes of this item (44): | 11 | | "Data center" means a building or a series of | 12 | | buildings rehabilitated or constructed to house | 13 | | working servers in one physical location or multiple | 14 | | sites within the State of Illinois. | 15 | | "Qualified tangible personal property" means: | 16 | | electrical systems and equipment; climate control and | 17 | | chilling equipment and systems; mechanical systems and | 18 | | equipment; monitoring and secure systems; emergency | 19 | | generators; hardware; computers; servers; data storage | 20 | | devices; network connectivity equipment; racks; | 21 | | cabinets; telecommunications cabling infrastructure; | 22 | | raised floor systems; peripheral components or | 23 | | systems; software; mechanical, electrical, or plumbing | 24 | | systems; battery systems; cooling systems and towers; | 25 | | temperature control systems; other cabling; and other | 26 | | data center infrastructure equipment and systems |
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| 1 | | necessary to operate qualified tangible personal | 2 | | property, including fixtures; and component parts of | 3 | | any of the foregoing, including installation, | 4 | | maintenance, repair, refurbishment, and replacement of | 5 | | qualified tangible personal property to generate, | 6 | | transform, transmit, distribute, or manage electricity | 7 | | necessary to operate qualified tangible personal | 8 | | property; and all other tangible personal property | 9 | | that is essential to the operations of a computer data | 10 | | center. The term "qualified tangible personal | 11 | | property" also includes building materials physically | 12 | | incorporated into the qualifying data center. To | 13 | | document the exemption allowed under this Section, the | 14 | | retailer must obtain from the purchaser a copy of the | 15 | | certificate of eligibility issued by the Department of | 16 | | Commerce and Economic Opportunity. | 17 | | This item (44) is exempt from the provisions of | 18 | | Section 2-70. | 19 | | (45) Beginning January 1, 2020 and through December | 20 | | 31, 2020, sales of tangible personal property made by a | 21 | | marketplace seller over a marketplace for which tax is due | 22 | | under this Act but for which use tax has been collected and | 23 | | remitted to the Department by a marketplace facilitator | 24 | | under Section 2d of the Use Tax Act are exempt from tax | 25 | | under this Act. A marketplace seller claiming this | 26 | | exemption shall maintain books and records demonstrating |
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| 1 | | that the use tax on such sales has been collected and | 2 | | remitted by a marketplace facilitator. Marketplace sellers | 3 | | that have properly remitted tax under this Act on such | 4 | | sales may file a claim for credit as provided in Section 6 | 5 | | of this Act. No claim is allowed, however, for such taxes | 6 | | for which a credit or refund has been issued to the | 7 | | marketplace facilitator under the Use Tax Act, or for | 8 | | which the marketplace facilitator has filed a claim for | 9 | | credit or refund under the Use Tax Act. | 10 | | (46) Beginning July 1, 2022, breast pumps, breast pump | 11 | | collection and storage supplies, and breast pump kits. | 12 | | This item (46) is exempt from the provisions of Section | 13 | | 2-70. As used in this item (46): | 14 | | "Breast pump" means an electrically controlled or | 15 | | manually controlled pump device designed or marketed to be | 16 | | used to express milk from a human breast during lactation, | 17 | | including the pump device and any battery, AC adapter, or | 18 | | other power supply unit that is used to power the pump | 19 | | device and is packaged and sold with the pump device at the | 20 | | time of sale. | 21 | | "Breast pump collection and storage supplies" means | 22 | | items of tangible personal property designed or marketed | 23 | | to be used in conjunction with a breast pump to collect | 24 | | milk expressed from a human breast and to store collected | 25 | | milk until it is ready for consumption. | 26 | | "Breast pump collection and storage supplies" |
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| 1 | | includes, but is not limited to: breast shields and breast | 2 | | shield connectors; breast pump tubes and tubing adapters; | 3 | | breast pump valves and membranes; backflow protectors and | 4 | | backflow protector adaptors; bottles and bottle caps | 5 | | specific to the operation of the breast pump; and breast | 6 | | milk storage bags. | 7 | | "Breast pump collection and storage supplies" does not | 8 | | include: (1) bottles and bottle caps not specific to the | 9 | | operation of the breast pump; (2) breast pump travel bags | 10 | | and other similar carrying accessories, including ice | 11 | | packs, labels, and other similar products; (3) breast pump | 12 | | cleaning supplies; (4) nursing bras, bra pads, breast | 13 | | shells, and other similar products; and (5) creams, | 14 | | ointments, and other similar products that relieve | 15 | | breastfeeding-related symptoms or conditions of the | 16 | | breasts or nipples, unless sold as part of a breast pump | 17 | | kit that is pre-packaged by the breast pump manufacturer | 18 | | or distributor. | 19 | | "Breast pump kit" means a kit that: (1) contains no | 20 | | more than a breast pump, breast pump collection and | 21 | | storage supplies, a rechargeable battery for operating the | 22 | | breast pump, a breastmilk cooler, bottle stands, ice | 23 | | packs, and a breast pump carrying case; and (2) is | 24 | | pre-packaged as a breast pump kit by the breast pump | 25 | | manufacturer or distributor. | 26 | | (47) Tangible personal property sold by or on behalf |
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| 1 | | of the State Treasurer pursuant to the Revised Uniform | 2 | | Unclaimed Property Act. This item (47) is exempt from the | 3 | | provisions of Section 2-70. | 4 | | (48) Beginning on January 1, 2024, tangible personal | 5 | | property purchased by an active duty member of the armed | 6 | | forces of the United States who presents valid military | 7 | | identification and purchases the property using a form of | 8 | | payment where the federal government is the payor. The | 9 | | member of the armed forces must complete, at the point of | 10 | | sale, a form prescribed by the Department of Revenue | 11 | | documenting that the transaction is eligible for the | 12 | | exemption under this paragraph. Retailers must keep the | 13 | | form as documentation of the exemption in their records | 14 | | for a period of not less than 6 years. "Armed forces of the | 15 | | United States" means the United States Army, Navy, Air | 16 | | Force, Marine Corps, or Coast Guard. This paragraph is | 17 | | exempt from the provisions of Section 2-70. | 18 | | (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; | 19 | | 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, | 20 | | Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. | 21 | | 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section | 22 | | 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff. | 23 | | 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised | 24 | | 12-12-23.) | 25 | | Section 20. The Motor Fuel Tax Law is amended by changing |
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| 1 | | Section 2 as follows: | 2 | | (35 ILCS 505/2) (from Ch. 120, par. 418) | 3 | | Sec. 2. A tax is imposed on the privilege of operating | 4 | | motor vehicles upon the public highways and recreational-type | 5 | | watercraft upon the waters of this State. | 6 | | (a) Prior to August 1, 1989, the tax is imposed at the rate | 7 | | of 13 cents per gallon on all motor fuel used in motor vehicles | 8 | | operating on the public highways and recreational type | 9 | | watercraft operating upon the waters of this State. Beginning | 10 | | on August 1, 1989 and until January 1, 1990, the rate of the | 11 | | tax imposed in this paragraph shall be 16 cents per gallon. | 12 | | Beginning January 1, 1990 and until July 1, 2019, the rate of | 13 | | tax imposed in this paragraph, including the tax on compressed | 14 | | natural gas, shall be 19 cents per gallon. Beginning July 1, | 15 | | 2019 and until July 1, 2020, the rate of tax imposed in this | 16 | | paragraph shall be 38 cents per gallon. Beginning July 1, 2020 | 17 | | and until July 1, 2021, the rate of tax imposed in this | 18 | | paragraph shall be 38.7 cents per gallon. Beginning July 1, | 19 | | 2021 and until January 1, 2023, the rate of tax imposed in this | 20 | | paragraph shall be 39.2 cents per gallon. On January 1, 2023, | 21 | | the rate of tax imposed in this paragraph shall be increased by | 22 | | an amount equal to the percentage increase, if any, in the | 23 | | Consumer Price Index for All Urban Consumers for all items | 24 | | published by the United States Department of Labor for the 12 | 25 | | months ending in September of 2022. On July 1, 2023, and on |
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| 1 | | July 1 of each subsequent year, the rate of tax imposed in this | 2 | | paragraph shall be increased by an amount equal to the | 3 | | percentage increase, if any, in the Consumer Price Index for | 4 | | All Urban Consumers for all items published by the United | 5 | | States Department of Labor for the 12 months ending in March of | 6 | | the year in which the increase takes place. The percentage | 7 | | increase in the Consumer Price Index shall be calculated as | 8 | | follows: (1) calculate the average Consumer Price Index for | 9 | | the full 12 months ending in March of the year in which the | 10 | | increase takes place; (2) calculate the average Consumer Price | 11 | | Index for the full 12 months ending in March of the year | 12 | | immediately preceding the year in which the increase takes | 13 | | place; (3) calculate the percentage increase, if any, in the | 14 | | current-year average determined under item (1) over the | 15 | | preceding-year average determined under item (2). The rate | 16 | | shall be rounded to the nearest one-tenth of one cent. | 17 | | (a-5) Beginning on July 1, 2022 and through December 31, | 18 | | 2022, each retailer of motor fuel shall cause the following | 19 | | notice to be posted in a prominently visible place on each | 20 | | retail dispensing device that is used to dispense motor fuel | 21 | | in the State of Illinois: "As of July 1, 2022, the State of | 22 | | Illinois has suspended the inflation adjustment to the motor | 23 | | fuel tax through December 31, 2022. The price on this pump | 24 | | should reflect the suspension of the tax increase." The notice | 25 | | shall be printed in bold print on a sign that is no smaller | 26 | | than 4 inches by 8 inches. The sign shall be clearly visible to |
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| 1 | | customers. Any retailer who fails to post or maintain a | 2 | | required sign through December 31, 2022 is guilty of a petty | 3 | | offense for which the fine shall be $500 per day per each | 4 | | retail premises where a violation occurs. | 5 | | (b) Until July 1, 2019, the tax on the privilege of | 6 | | operating motor vehicles which use diesel fuel, liquefied | 7 | | natural gas, or propane shall be the rate according to | 8 | | paragraph (a) plus an additional 2 1/2 cents per gallon. | 9 | | Beginning July 1, 2019, the tax on the privilege of operating | 10 | | motor vehicles which use diesel fuel, liquefied natural gas, | 11 | | or propane shall be the rate according to subsection (a) plus | 12 | | an additional 7.5 cents per gallon. "Diesel fuel" is defined | 13 | | as any product intended for use or offered for sale as a fuel | 14 | | for engines in which the fuel is injected into the combustion | 15 | | chamber and ignited by pressure without electric spark. | 16 | | (c) A tax is imposed upon the privilege of engaging in the | 17 | | business of selling motor fuel as a retailer or reseller on all | 18 | | motor fuel used in motor vehicles operating on the public | 19 | | highways and recreational type watercraft operating upon the | 20 | | waters of this State: (1) at the rate of 3 cents per gallon on | 21 | | motor fuel owned or possessed by such retailer or reseller at | 22 | | 12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents | 23 | | per gallon on motor fuel owned or possessed by such retailer or | 24 | | reseller at 12:01 A.M. on January 1, 1990. | 25 | | Retailers and resellers who are subject to this additional | 26 | | tax shall be required to inventory such motor fuel and pay this |
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| 1 | | additional tax in a manner prescribed by the Department of | 2 | | Revenue. | 3 | | The tax imposed in this paragraph (c) shall be in addition | 4 | | to all other taxes imposed by the State of Illinois or any unit | 5 | | of local government in this State. | 6 | | (d) Except as provided in Section 2a, the collection of a | 7 | | tax based on gallonage of gasoline used for the propulsion of | 8 | | any aircraft is prohibited on and after October 1, 1979, and | 9 | | the collection of a tax based on gallonage of special fuel used | 10 | | for the propulsion of any aircraft is prohibited on and after | 11 | | December 1, 2019. | 12 | | (e) The collection of a tax, based on gallonage of all | 13 | | products commonly or commercially known or sold as 1-K | 14 | | kerosene, regardless of its classification or uses, is | 15 | | prohibited (i) on and after July 1, 1992 until December 31, | 16 | | 1999, except when the 1-K kerosene is either: (1) delivered | 17 | | into bulk storage facilities of a bulk user, or (2) delivered | 18 | | directly into the fuel supply tanks of motor vehicles and (ii) | 19 | | on and after January 1, 2000. Beginning on January 1, 2000, the | 20 | | collection of a tax, based on gallonage of all products | 21 | | commonly or commercially known or sold as 1-K kerosene, | 22 | | regardless of its classification or uses, is prohibited except | 23 | | when the 1-K kerosene is delivered directly into a storage | 24 | | tank that is located at a facility that has withdrawal | 25 | | facilities that are readily accessible to and are capable of | 26 | | dispensing 1-K kerosene into the fuel supply tanks of motor |
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| 1 | | vehicles. For purposes of this subsection (e), a facility is | 2 | | considered to have withdrawal facilities that are not "readily | 3 | | accessible to and capable of dispensing 1-K kerosene into the | 4 | | fuel supply tanks of motor vehicles" only if the 1-K kerosene | 5 | | is delivered from: (i) a dispenser hose that is short enough so | 6 | | that it will not reach the fuel supply tank of a motor vehicle | 7 | | or (ii) a dispenser that is enclosed by a fence or other | 8 | | physical barrier so that a vehicle cannot pull alongside the | 9 | | dispenser to permit fueling. | 10 | | Any person who sells or uses 1-K kerosene for use in motor | 11 | | vehicles upon which the tax imposed by this Law has not been | 12 | | paid shall be liable for any tax due on the sales or use of 1-K | 13 | | kerosene. | 14 | | As used in this Section, "Consumer Price Index" means the | 15 | | index published by the Bureau of Labor Statistics of the | 16 | | United States Department of Labor that measures the average | 17 | | change in prices of goods and services purchased by all urban | 18 | | consumers, United States city average, all items, 1982-84 = | 19 | | 100. | 20 | | (Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19; | 21 | | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.) | 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law. |
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