101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4440

 

Introduced 2/3/2020, by Rep. Jonathan Carroll

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2-5

    Amends the Retailers' Occupation Tax Act. Provides that a teacher who is employed by an educational institution that is exempt from the tax under the Act is presumed to be making an exempt purchase if he or she (i) purchases materials and supplies, (ii) possesses a copy of the educational institution's exemption number, and (iii) presents identification at the time of the sale.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 2-5 as follows:
 
6    (35 ILCS 120/2-5)
7    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
8sale of the following tangible personal property are exempt
9from the tax imposed by this Act:
10        (1) Farm chemicals.
11        (2) Farm machinery and equipment, both new and used,
12    including that manufactured on special order, certified by
13    the purchaser to be used primarily for production
14    agriculture or State or federal agricultural programs,
15    including individual replacement parts for the machinery
16    and equipment, including machinery and equipment purchased
17    for lease, and including implements of husbandry defined in
18    Section 1-130 of the Illinois Vehicle Code, farm machinery
19    and agricultural chemical and fertilizer spreaders, and
20    nurse wagons required to be registered under Section 3-809
21    of the Illinois Vehicle Code, but excluding other motor
22    vehicles required to be registered under the Illinois
23    Vehicle Code. Horticultural polyhouses or hoop houses used

 

 

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

 

 

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

 

 

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

 

 

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1        (11) Personal property sold to a governmental body, to
2    a corporation, society, association, foundation, or
3    institution organized and operated exclusively for
4    charitable, religious, or educational purposes, or to a
5    not-for-profit corporation, society, association,
6    foundation, institution, or organization that has no
7    compensated officers or employees and that is organized and
8    operated primarily for the recreation of persons 55 years
9    of age or older. A limited liability company may qualify
10    for the exemption under this paragraph only if the limited
11    liability company is organized and operated exclusively
12    for educational purposes. On and after July 1, 1987,
13    however, no entity otherwise eligible for this exemption
14    shall make tax-free purchases unless it has an active
15    identification number issued by the Department.
16        A teacher who is employed by an educational institution
17    that is exempt from the tax under this Act is presumed to
18    be making an exempt purchase if he or she (i) purchases
19    materials and supplies, (ii) possesses a copy of the
20    educational institution's exemption number, and (iii)
21    presents identification at the time of the sale. As used in
22    this paragraph (11), "materials and supplies" means
23    amounts paid for instructional materials or supplies that
24    are designated for classroom use in any public or
25    non-public school in the State.
26        (12) (Blank).

 

 

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

 

 

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1    permanently installed in or affixed to aircraft moving in
2    interstate commerce.
3        (14) Machinery and equipment that will be used by the
4    purchaser, or a lessee of the purchaser, primarily in the
5    process of manufacturing or assembling tangible personal
6    property for wholesale or retail sale or lease, whether the
7    sale or lease is made directly by the manufacturer or by
8    some other person, whether the materials used in the
9    process are owned by the manufacturer or some other person,
10    or whether the sale or lease is made apart from or as an
11    incident to the seller's engaging in the service occupation
12    of producing machines, tools, dies, jigs, patterns,
13    gauges, or other similar items of no commercial value on
14    special order for a particular purchaser. The exemption
15    provided by this paragraph (14) does not include machinery
16    and equipment used in (i) the generation of electricity for
17    wholesale or retail sale; (ii) the generation or treatment
18    of natural or artificial gas for wholesale or retail sale
19    that is delivered to customers through pipes, pipelines, or
20    mains; or (iii) the treatment of water for wholesale or
21    retail sale that is delivered to customers through pipes,
22    pipelines, or mains. The provisions of Public Act 98-583
23    are declaratory of existing law as to the meaning and scope
24    of this 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 service
9    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, and
14    including photoprocessing machinery and equipment
15    purchased for lease.
16        (21) Until July 1, 2023, 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 period
26    beginning July 1, 2003 and ending on August 16, 2013 (the

 

 

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1    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 for
26    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 Section,
4    a motor vehicle sold in this State to a nonresident even
5    though the motor vehicle is delivered to the nonresident in
6    this State, if the motor vehicle is not to be titled in
7    this State, and if a drive-away permit is issued to the
8    motor vehicle as provided in Section 3-603 of the Illinois
9    Vehicle Code or if the nonresident purchaser has vehicle
10    registration plates to transfer to the motor vehicle upon
11    returning to his or her home state. The issuance of the
12    drive-away permit or having the out-of-state registration
13    plates to be transferred is prima facie evidence that the
14    motor vehicle will not be titled in this State.
15        (25-5) The exemption under item (25) does not apply if
16    the state in which the motor vehicle will be titled does
17    not allow a reciprocal exemption for a motor vehicle sold
18    and delivered in that state to an Illinois resident but
19    titled in Illinois. The tax collected under this Act on the
20    sale of a motor vehicle in this State to a resident of
21    another state that does not allow a reciprocal exemption
22    shall be imposed at a rate equal to the state's rate of tax
23    on taxable property in the state in which the purchaser is
24    a resident, except that the tax shall not exceed the tax
25    that would otherwise be imposed under this Act. At the time
26    of the sale, the purchaser shall execute a statement,

 

 

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1    signed under penalty of perjury, of his or her intent to
2    title the vehicle in the state in which the purchaser is a
3    resident within 30 days after the sale and of the fact of
4    the payment to the State of Illinois of tax in an amount
5    equivalent to the state's rate of tax on taxable property
6    in his or her state of residence and shall submit the
7    statement to the appropriate tax collection agency in his
8    or her state of residence. In addition, the retailer must
9    retain a signed copy of the statement in his or her
10    records. Nothing in this item shall be construed to require
11    the removal of the vehicle from this state following the
12    filing of an intent to title the vehicle in the purchaser's
13    state of residence if the purchaser titles the vehicle in
14    his or her state of residence within 30 days after the date
15    of sale. The tax collected under this Act in accordance
16    with this item (25-5) shall be proportionately distributed
17    as if the tax were collected at the 6.25% general rate
18    imposed under this Act.
19        (25-7) Beginning on July 1, 2007, no tax is imposed
20    under this Act on the sale of an aircraft, as defined in
21    Section 3 of the Illinois Aeronautics Act, if all of the
22    following conditions are met:
23            (1) the aircraft leaves this State within 15 days
24        after the later of either the issuance of the final
25        billing for the sale of the aircraft, or the authorized
26        approval for return to service, completion of the

 

 

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

 

 

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

 

 

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

 

 

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1    resulting from a State or federally declared disaster in
2    Illinois or bordering Illinois when such repairs are
3    initiated on facilities located in the declared disaster
4    area within 6 months after the disaster.
5        (32) Beginning July 1, 1999, game or game birds sold at
6    a "game breeding and hunting preserve area" as that term is
7    used in the Wildlife Code. This paragraph is exempt from
8    the provisions of Section 2-70.
9        (33) A motor vehicle, as that term is defined in
10    Section 1-146 of the Illinois Vehicle Code, that is donated
11    to a corporation, limited liability company, society,
12    association, foundation, or institution that is determined
13    by the Department to be organized and operated exclusively
14    for educational purposes. For purposes of this exemption,
15    "a corporation, limited liability company, society,
16    association, foundation, or institution organized and
17    operated exclusively for educational purposes" means all
18    tax-supported public schools, private schools that offer
19    systematic instruction in useful branches of learning by
20    methods common to public schools and that compare favorably
21    in their scope and intensity with the course of study
22    presented in tax-supported schools, and vocational or
23    technical schools or institutes organized and operated
24    exclusively to provide a course of study of not less than 6
25    weeks duration and designed to prepare individuals to
26    follow a trade or to pursue a manual, technical,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    lubricants, cleaning solution, latex gloves, and
2    protective films. This exemption applies only to the sale
3    of qualifying tangible personal property to persons who
4    modify, refurbish, complete, replace, or maintain an
5    aircraft and who (i) hold an Air Agency Certificate and are
6    empowered to operate an approved repair station by the
7    Federal Aviation Administration, (ii) have a Class IV
8    Rating, and (iii) conduct operations in accordance with
9    Part 145 of the Federal Aviation Regulations. The exemption
10    does not include aircraft operated by a commercial air
11    carrier providing scheduled passenger air service pursuant
12    to authority issued under Part 121 or Part 129 of the
13    Federal Aviation Regulations. The changes made to this
14    paragraph (40) by Public Act 98-534 are declarative of
15    existing law.
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 further
22    consideration by or on behalf of the municipality at the
23    time of the completion of the municipal convention hall or
24    upon the retirement or redemption of any bonds or other
25    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, menstrual pads,
6    tampons, and menstrual cups.
7        (43) Merchandise that is subject to the Rental Purchase
8    Agreement Occupation and Use Tax. The purchaser must
9    certify that the item is purchased to be rented subject to
10    a rental purchase agreement, as defined in the Rental
11    Purchase Agreement Act, and provide proof of registration
12    under the Rental Purchase Agreement Occupation and Use Tax
13    Act. This paragraph is exempt from the provisions of
14    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 this amendatory Act
24    of the 101st General Assembly been in effect, may apply for
25    and obtain an exemption for subsequent purchases of
26    computer equipment or enabling software purchased or

 

 

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

 

 

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1        property, including fixtures; and component parts of
2        any of the foregoing, including installation,
3        maintenance, repair, refurbishment, and replacement of
4        qualified tangible personal property to generate,
5        transform, transmit, distribute, or manage electricity
6        necessary to operate qualified tangible personal
7        property; and all other tangible personal property
8        that is essential to the operations of a computer data
9        center. The term "qualified tangible personal
10        property" also includes building materials physically
11        incorporated in to the qualifying data center. To
12        document the exemption allowed under this Section, the
13        retailer must obtain from the purchaser a copy of the
14        certificate of eligibility issued by the Department of
15        Commerce and Economic Opportunity.
16        This item (44) is exempt from the provisions of Section
17    2-70.
18(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
19100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
208-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
21eff. 7-12-19.)