103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2336

 

Introduced 2/14/2023, by Rep. Joe C. Sosnowski

 

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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts.


LRB103 05332 SPS 50351 b

 

 

A BILL FOR

 

HB2336LRB103 05332 SPS 50351 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1stated on customers' bills for the purchase and consumption of
2food and beverages purchased at retail from a retailer, to the
3extent that the proceeds of the service charge are in fact
4turned over as tips or as a substitute for tips to the
5employees who participate directly in preparing, serving,
6hosting or cleaning up the food or beverage function with
7respect to which the service charge is imposed.
8    (14) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of
10rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
11pipe and tubular goods, including casing and drill strings,
12(iii) pumps and pump-jack units, (iv) storage tanks and flow
13lines, (v) any individual replacement part for oil field
14exploration, drilling, and production equipment, and (vi)
15machinery and equipment purchased for lease; but excluding
16motor vehicles required to be registered under the Illinois
17Vehicle Code.
18    (15) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including
20that manufactured on special order, certified by the purchaser
21to be used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23    (16) Until July 1, 2028, coal and aggregate exploration,
24mining, off-highway hauling, processing, maintenance, and
25reclamation equipment, including replacement parts and
26equipment, and including equipment purchased for lease, but

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1exemption under this paragraph (35) applies continuously from
2January 1, 2010 through December 31, 2024; however, no claim
3for credit or refund is allowed for taxes paid as a result of
4the disallowance of this exemption on or after January 1, 2015
5and prior to February 5, 2020 (the effective date of Public Act
6101-629) this amendatory Act of the 101st General Assembly.
7    (36) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-90.
22    (37) Beginning January 1, 2017 and through December 31,
232026, menstrual pads, tampons, and menstrual cups.
24    (38) Merchandise that is subject to the Rental Purchase
25Agreement Occupation and Use Tax. The purchaser must certify
26that the item is purchased to be rented subject to a rental

 

 

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

 

 

HB2336- 20 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 21 -LRB103 05332 SPS 50351 b

1    data center. The term "qualified tangible personal
2    property" also includes building materials physically
3    incorporated in to the qualifying data center. To document
4    the exemption allowed under this Section, the retailer
5    must obtain from the purchaser a copy of the certificate
6    of eligibility issued by the Department of Commerce and
7    Economic Opportunity.
8    This item (40) is exempt from the provisions of Section
93-90.
10    (41) Beginning July 1, 2022, breast pumps, breast pump
11collection and storage supplies, and breast pump kits. This
12item (41) is exempt from the provisions of Section 3-90. As
13used in this item (41):
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    (42) (41) Tangible personal property sold by or on behalf

 

 

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1of the State Treasurer pursuant to the Revised Uniform
2Unclaimed Property Act. This item (42) (41) is exempt from the
3provisions of Section 3-90.
4    (43) Beginning January 1, 2024, food for human consumption
5that is to be consumed off the premises where it is sold (other
6than alcoholic beverages, food consisting of or infused with
7adult use cannabis, soft drinks, and food that has been
8prepared for immediate consumption) and prescription and
9nonprescription medicines, drugs, medical appliances, products
10classified as Class III medical devices by the United States
11Food and Drug Administration that are used for cancer
12treatment pursuant to a prescription, as well as any
13accessories and components related to those devices,
14modifications to a motor vehicle for the purpose of rendering
15it usable by a person with a disability, and insulin, blood
16sugar testing materials, syringes, and needles used by human
17diabetics. This item (43) is exempt from the provisions of
18Section 3-90.
19(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
20101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
216-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
22102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
23eff. 5-27-22; revised 8-1-22.)
 
24    (35 ILCS 105/3-10)
25    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

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1Section, the tax imposed by this Act is at the rate of 6.25% of
2either the selling price or the fair market value, if any, of
3the tangible personal property. In all cases where property
4functionally used or consumed is the same as the property that
5was purchased at retail, then the tax is imposed on the selling
6price of the property. In all cases where property
7functionally used or consumed is a by-product or waste product
8that has been refined, manufactured, or produced from property
9purchased at retail, then the tax is imposed on the lower of
10the fair market value, if any, of the specific property so used
11in this State or on the selling price of the property purchased
12at retail. For purposes of this Section "fair market value"
13means the price at which property would change hands between a
14willing buyer and a willing seller, neither being under any
15compulsion to buy or sell and both having reasonable knowledge
16of the relevant facts. The fair market value shall be
17established by Illinois sales by the taxpayer of the same
18property as that functionally used or consumed, or if there
19are no such sales by the taxpayer, then comparable sales or
20purchases of property of like kind and character in Illinois.
21    Beginning on July 1, 2000 and through December 31, 2000,
22with respect to motor fuel, as defined in Section 1.1 of the
23Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24the Use Tax Act, the tax is imposed at the rate of 1.25%.
25    Beginning on August 6, 2010 through August 15, 2010, and
26beginning again on August 5, 2022 through August 14, 2022,

 

 

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1with respect to sales tax holiday items as defined in Section
23-6 of this Act, the tax is imposed at the rate of 1.25%.
3    With respect to gasohol, the tax imposed by this Act
4applies to (i) 70% of the proceeds of sales made on or after
5January 1, 1990, and before July 1, 2003, (ii) 80% of the
6proceeds of sales made on or after July 1, 2003 and on or
7before July 1, 2017, and (iii) 100% of the proceeds of sales
8made thereafter. If, at any time, however, the tax under this
9Act on sales of gasohol is imposed at the rate of 1.25%, then
10the tax imposed by this Act applies to 100% of the proceeds of
11sales of gasohol made during that time.
12    With respect to majority blended ethanol fuel, the tax
13imposed by this Act does not apply to the proceeds of sales
14made on or after July 1, 2003 and on or before December 31,
152023 but applies to 100% of the proceeds of sales made
16thereafter.
17    With respect to biodiesel blends with no less than 1% and
18no more than 10% biodiesel, the tax imposed by this Act applies
19to (i) 80% of the proceeds of sales made on or after July 1,
202003 and on or before December 31, 2018 and (ii) 100% of the
21proceeds of sales made after December 31, 2018 and before
22January 1, 2024. On and after January 1, 2024 and on or before
23December 31, 2030, the taxation of biodiesel, renewable
24diesel, and biodiesel blends shall be as provided in Section
253-5.1. If, at any time, however, the tax under this Act on
26sales of biodiesel blends with no less than 1% and no more than

 

 

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110% biodiesel is imposed at the rate of 1.25%, then the tax
2imposed by this Act applies to 100% of the proceeds of sales of
3biodiesel blends with no less than 1% and no more than 10%
4biodiesel made during that time.
5    With respect to biodiesel and biodiesel blends with more
6than 10% but no more than 99% biodiesel, the tax imposed by
7this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2023. On and
9after January 1, 2024 and on or before December 31, 2030, the
10taxation of biodiesel, renewable diesel, and biodiesel blends
11shall be as provided in Section 3-5.1.
12    Until July 1, 2022 and beginning again on July 1, 2023
13until January 1, 2024, with respect to food for human
14consumption that is to be consumed off the premises where it is
15sold (other than alcoholic beverages, food consisting of or
16infused with adult use cannabis, soft drinks, and food that
17has been prepared for immediate consumption), the tax is
18imposed at the rate of 1%. Beginning on July 1, 2022 and until
19July 1, 2023, with respect to food for human consumption that
20is to be consumed off the premises where it is sold (other than
21alcoholic beverages, food consisting of or infused with adult
22use cannabis, soft drinks, and food that has been prepared for
23immediate consumption), the tax is imposed at the rate of 0%.
24    With respect to prescription and nonprescription
25medicines, drugs, medical appliances, products classified as
26Class III medical devices by the United States Food and Drug

 

 

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1Administration that are used for cancer treatment pursuant to
2a prescription, as well as any accessories and components
3related to those devices, modifications to a motor vehicle for
4the purpose of rendering it usable by a person with a
5disability, and insulin, blood sugar testing materials,
6syringes, and needles used by human diabetics, the tax is
7imposed at the rate of 1%. Beginning on January 1, 2024 items
8that had been subject to a 1% rate of tax under this paragraph
9shall be exempt as provided in item (43) of Section 3-5. For
10the purposes of this Section, until September 1, 2009: the
11term "soft drinks" means any complete, finished, ready-to-use,
12non-alcoholic drink, whether carbonated or not, including, but
13not limited to, soda water, cola, fruit juice, vegetable
14juice, carbonated water, and all other preparations commonly
15known as soft drinks of whatever kind or description that are
16contained in any closed or sealed bottle, can, carton, or
17container, regardless of size; but "soft drinks" does not
18include coffee, tea, non-carbonated water, infant formula,
19milk or milk products as defined in the Grade A Pasteurized
20Milk and Milk Products Act, or drinks containing 50% or more
21natural fruit or vegetable juice.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "soft drinks" means non-alcoholic
24beverages that contain natural or artificial sweeteners. "Soft
25drinks" does do not include beverages that contain milk or
26milk products, soy, rice or similar milk substitutes, or

 

 

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

 

 

HB2336- 29 -LRB103 05332 SPS 50351 b

1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 CFR C.F.R. § 201.66. The
9"over-the-counter-drug" label includes:
10        (A) a A "Drug Facts" panel; or
11        (B) a A statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14    Beginning on January 1, 2014 (the effective date of Public
15Act 98-122) this amendatory Act of the 98th General Assembly,
16"prescription and nonprescription medicines and drugs"
17includes medical cannabis purchased from a registered
18dispensing organization under the Compassionate Use of Medical
19Cannabis Program Act.
20    As used in this Section, "adult use cannabis" means
21cannabis subject to tax under the Cannabis Cultivation
22Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23and does not include cannabis subject to tax under the
24Compassionate Use of Medical Cannabis Program Act.
25    If the property that is purchased at retail from a
26retailer is acquired outside Illinois and used outside

 

 

HB2336- 30 -LRB103 05332 SPS 50351 b

1Illinois before being brought to Illinois for use here and is
2taxable under this Act, the "selling price" on which the tax is
3computed shall be reduced by an amount that represents a
4reasonable allowance for depreciation for the period of prior
5out-of-state use.
6(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
7102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
84-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
9102-700, Article 65, Section 65-5, eff. 4-19-22; revised
105-27-22.)
 
11    Section 10. The Service Use Tax Act is amended by changing
12Sections 3-5 and 3-10 as follows:
 
13    (35 ILCS 110/3-5)
14    Sec. 3-5. Exemptions. Use of the following tangible
15personal property is exempt from the tax imposed by this Act:
16    (1) Personal property purchased from a corporation,
17society, association, foundation, institution, or
18organization, other than a limited liability company, that is
19organized and operated as a not-for-profit service enterprise
20for the benefit of persons 65 years of age or older if the
21personal property was not purchased by the enterprise for the
22purpose of resale by the enterprise.
23    (2) Personal property purchased by a non-profit Illinois
24county fair association for use in conducting, operating, or

 

 

HB2336- 31 -LRB103 05332 SPS 50351 b

1promoting the county fair.
2    (3) Personal property purchased by a not-for-profit arts
3or cultural organization that establishes, by proof required
4by the Department by rule, that it has received an exemption
5under Section 501(c)(3) of the Internal Revenue Code and that
6is organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after July 1, 2001 (the
13effective date of Public Act 92-35), however, an entity
14otherwise eligible for this exemption shall not make tax-free
15purchases unless it has an active identification number issued
16by the Department.
17    (4) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (5) Until July 1, 2003 and beginning again on September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new
24and used, and including that manufactured on special order or
25purchased for lease, certified by the purchaser to be used
26primarily for graphic arts production. Equipment includes

 

 

HB2336- 32 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 33 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 34 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 35 -LRB103 05332 SPS 50351 b

1motor vehicles required to be registered under the Illinois
2Vehicle Code.
3    (11) Proceeds from the sale of photoprocessing machinery
4and equipment, including repair and replacement parts, both
5new and used, including that manufactured on special order,
6certified by the purchaser to be used primarily for
7photoprocessing, and including photoprocessing machinery and
8equipment purchased for lease.
9    (12) Until July 1, 2028, coal and aggregate exploration,
10mining, off-highway hauling, processing, maintenance, and
11reclamation equipment, including replacement parts and
12equipment, and including equipment purchased for lease, but
13excluding motor vehicles required to be registered under the
14Illinois Vehicle Code. The changes made to this Section by
15Public Act 97-767 apply on and after July 1, 2003, but no claim
16for credit or refund is allowed on or after August 16, 2013
17(the effective date of Public Act 98-456) for such taxes paid
18during the period beginning July 1, 2003 and ending on August
1916, 2013 (the effective date of Public Act 98-456).
20    (13) Semen used for artificial insemination of livestock
21for direct agricultural production.
22    (14) Horses, or interests in horses, registered with and
23meeting the requirements of any of the Arabian Horse Club
24Registry of America, Appaloosa Horse Club, American Quarter
25Horse Association, United States Trotting Association, or
26Jockey Club, as appropriate, used for purposes of breeding or

 

 

HB2336- 36 -LRB103 05332 SPS 50351 b

1racing for prizes. This item (14) is exempt from the
2provisions of Section 3-75, and the exemption provided for
3under this item (14) applies for all periods beginning May 30,
41995, but no claim for credit or refund is allowed on or after
5January 1, 2008 (the effective date of Public Act 95-88) for
6such taxes paid during the period beginning May 30, 2000 and
7ending on January 1, 2008 (the effective date of Public Act
895-88).
9    (15) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients purchased by a
12lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act. If the equipment is leased
18in a manner that does not qualify for this exemption or is used
19in any other non-exempt manner, the lessor shall be liable for
20the tax imposed under this Act or the Use Tax Act, as the case
21may be, based on the fair market value of the property at the
22time the non-qualifying use occurs. No lessor shall collect or
23attempt to collect an amount (however designated) that
24purports to reimburse that lessor for the tax imposed by this
25Act or the Use Tax Act, as the case may be, if the tax has not
26been paid by the lessor. If a lessor improperly collects any

 

 

HB2336- 37 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 38 -LRB103 05332 SPS 50351 b

1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is donated
3for disaster relief to be used in a State or federally declared
4disaster area in Illinois or bordering Illinois by a
5manufacturer or retailer that is registered in this State to a
6corporation, society, association, foundation, or institution
7that has been issued a sales tax exemption identification
8number by the Department that assists victims of the disaster
9who reside within the declared disaster area.
10    (18) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is used in
13the performance of infrastructure repairs in this State,
14including but not limited to municipal roads and streets,
15access roads, bridges, sidewalks, waste disposal systems,
16water and sewer line extensions, water distribution and
17purification facilities, storm water drainage and retention
18facilities, and sewage treatment facilities, resulting from a
19State or federally declared disaster in Illinois or bordering
20Illinois when such repairs are initiated on facilities located
21in the declared disaster area within 6 months after the
22disaster.
23    (19) Beginning July 1, 1999, game or game birds purchased
24at a "game breeding and hunting preserve area" as that term is
25used in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 3-75.

 

 

HB2336- 39 -LRB103 05332 SPS 50351 b

1    (20) A motor vehicle, as that term is defined in Section
21-146 of the Illinois Vehicle Code, that is donated to a
3corporation, limited liability company, society, association,
4foundation, or institution that is determined by the
5Department to be organized and operated exclusively for
6educational purposes. For purposes of this exemption, "a
7corporation, limited liability company, society, association,
8foundation, or institution organized and operated exclusively
9for educational purposes" means all tax-supported public
10schools, private schools that offer systematic instruction in
11useful branches of learning by methods common to public
12schools and that compare favorably in their scope and
13intensity with the course of study presented in tax-supported
14schools, and vocational or technical schools or institutes
15organized and operated exclusively to provide a course of
16study of not less than 6 weeks duration and designed to prepare
17individuals to follow a trade or to pursue a manual,
18technical, mechanical, industrial, business, or commercial
19occupation.
20    (21) Beginning January 1, 2000, personal property,
21including food, purchased through fundraising events for the
22benefit of a public or private elementary or secondary school,
23a group of those schools, or one or more school districts if
24the events are sponsored by an entity recognized by the school
25district that consists primarily of volunteers and includes
26parents and teachers of the school children. This paragraph

 

 

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1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 3-75.
8    (22) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and
11other items, and replacement parts for these machines.
12Beginning January 1, 2002 and through June 30, 2003, machines
13and parts for machines used in commercial, coin-operated
14amusement and vending business if a use or occupation tax is
15paid on the gross receipts derived from the use of the
16commercial, coin-operated amusement and vending machines. This
17paragraph is exempt from the provisions of Section 3-75.
18    (23) Beginning August 23, 2001 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks, and food that has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

HB2336- 41 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 42 -LRB103 05332 SPS 50351 b

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

 

 

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

 

 

HB2336- 44 -LRB103 05332 SPS 50351 b

1Federal Aviation Administration, (ii) have a Class IV Rating,
2and (iii) conduct operations in accordance with Part 145 of
3the Federal Aviation Regulations. The exemption does not
4include aircraft operated by a commercial air carrier
5providing scheduled passenger air service pursuant to
6authority issued under Part 121 or Part 129 of the Federal
7Aviation Regulations. The changes made to this paragraph (27)
8by Public Act 98-534 are declarative of existing law. It is the
9intent of the General Assembly that the exemption under this
10paragraph (27) applies continuously from January 1, 2010
11through December 31, 2024; however, no claim for credit or
12refund is allowed for taxes paid as a result of the
13disallowance of this exemption on or after January 1, 2015 and
14prior to February 5, 2020 (the effective date of Public Act
15101-629) this amendatory Act of the 101st General Assembly.
16    (28) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt
25instruments issued by the public-facilities corporation in
26connection with the development of the municipal convention

 

 

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1hall. This exemption includes existing public-facilities
2corporations as provided in Section 11-65-25 of the Illinois
3Municipal Code. This paragraph is exempt from the provisions
4of Section 3-75.
5    (29) Beginning January 1, 2017 and through December 31,
62026, menstrual pads, tampons, and menstrual cups.
7    (30) Tangible personal property transferred to a purchaser
8who is exempt from the tax imposed by this Act by operation of
9federal law. This paragraph is exempt from the provisions of
10Section 3-75.
11    (31) Qualified tangible personal property used in the
12construction or operation of a data center that has been
13granted a certificate of exemption by the Department of
14Commerce and Economic Opportunity, whether that tangible
15personal property is purchased by the owner, operator, or
16tenant of the data center or by a contractor or subcontractor
17of the owner, operator, or tenant. Data centers that would
18have qualified for a certificate of exemption prior to January
191, 2020 had Public Act 101-31 this amendatory Act of the 101st
20General Assembly been in effect, may apply for and obtain an
21exemption for subsequent purchases of computer equipment or
22enabling software purchased or leased to upgrade, supplement,
23or replace computer equipment or enabling software purchased
24or leased in the original investment that would have
25qualified.
26    The Department of Commerce and Economic Opportunity shall

 

 

HB2336- 46 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 47 -LRB103 05332 SPS 50351 b

1    electricity necessary to operate qualified tangible
2    personal property; and all other tangible personal
3    property that is essential to the operations of a computer
4    data center. The term "qualified tangible personal
5    property" also includes building materials physically
6    incorporated in to the qualifying data center. To document
7    the exemption allowed under this Section, the retailer
8    must obtain from the purchaser a copy of the certificate
9    of eligibility issued by the Department of Commerce and
10    Economic Opportunity.
11    This item (31) is exempt from the provisions of Section
123-75.
13    (32) Beginning July 1, 2022, breast pumps, breast pump
14collection and storage supplies, and breast pump kits. This
15item (32) is exempt from the provisions of Section 3-75. As
16used in this item (32):
17        "Breast pump" means an electrically controlled or
18    manually controlled pump device designed or marketed to be
19    used to express milk from a human breast during lactation,
20    including the pump device and any battery, AC adapter, or
21    other power supply unit that is used to power the pump
22    device and is packaged and sold with the pump device at the
23    time of sale.
24        "Breast pump collection and storage supplies" means
25    items of tangible personal property designed or marketed
26    to be used in conjunction with a breast pump to collect

 

 

HB2336- 48 -LRB103 05332 SPS 50351 b

1    milk expressed from a human breast and to store collected
2    milk until it is ready for consumption.
3        "Breast pump collection and storage supplies"
4    includes, but is not limited to: breast shields and breast
5    shield connectors; breast pump tubes and tubing adapters;
6    breast pump valves and membranes; backflow protectors and
7    backflow protector adaptors; bottles and bottle caps
8    specific to the operation of the breast pump; and breast
9    milk storage bags.
10        "Breast pump collection and storage supplies" does not
11    include: (1) bottles and bottle caps not specific to the
12    operation of the breast pump; (2) breast pump travel bags
13    and other similar carrying accessories, including ice
14    packs, labels, and other similar products; (3) breast pump
15    cleaning supplies; (4) nursing bras, bra pads, breast
16    shells, and other similar products; and (5) creams,
17    ointments, and other similar products that relieve
18    breastfeeding-related symptoms or conditions of the
19    breasts or nipples, unless sold as part of a breast pump
20    kit that is pre-packaged by the breast pump manufacturer
21    or distributor.
22        "Breast pump kit" means a kit that: (1) contains no
23    more than a breast pump, breast pump collection and
24    storage supplies, a rechargeable battery for operating the
25    breast pump, a breastmilk cooler, bottle stands, ice
26    packs, and a breast pump carrying case; and (2) is

 

 

HB2336- 49 -LRB103 05332 SPS 50351 b

1    pre-packaged as a breast pump kit by the breast pump
2    manufacturer or distributor.
3    (33) (32) Tangible personal property sold by or on behalf
4of the State Treasurer pursuant to the Revised Uniform
5Unclaimed Property Act. This item (33) (32) is exempt from the
6provisions of Section 3-75.
7    (34) Beginning January 1, 2024, food prepared for
8immediate consumption and transferred incident to a sale of
9service subject to this Act or the Service Occupation Tax Act
10by an entity licensed under the Hospital Licensing Act, the
11Nursing Home Care Act, the Assisted Living and Shared Housing
12Act, the ID/DD Community Care Act, the MC/DD Act, the
13Specialized Mental Health Rehabilitation Act of 2013, or the
14Child Care Act of 1969, or an entity that holds a permit issued
15pursuant to the Life Care Facilities Act; food for human
16consumption that is to be consumed off the premises where it is
17sold (other than alcoholic beverages, food consisting of or
18infused with adult use cannabis, soft drinks, and food that
19has been prepared for immediate consumption and is not
20otherwise included in this paragraph); and prescription and
21nonprescription medicines, drugs, medical appliances, products
22classified as Class III medical devices by the United States
23Food and Drug Administration that are used for cancer
24treatment pursuant to a prescription, as well as any
25accessories and components related to those devices,
26modifications to a motor vehicle for the purpose of rendering

 

 

HB2336- 50 -LRB103 05332 SPS 50351 b

1it usable by a person with a disability, and insulin, blood
2sugar testing materials, syringes, and needles used by human
3diabetics. This item (34) is exempt from the provisions of
4Section 3-75.
5(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
6101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
770, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
875-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
9    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
10    Sec. 3-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12the selling price of tangible personal property transferred as
13an incident to the sale of service, but, for the purpose of
14computing this tax, in no event shall the selling price be less
15than the cost price of the property to the serviceman.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act applies to (i) 70% of the selling price
22of property transferred as an incident to the sale of service
23on or after January 1, 1990, and before July 1, 2003, (ii) 80%
24of the selling price of property transferred as an incident to
25the sale of service on or after July 1, 2003 and on or before

 

 

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1July 1, 2017, and (iii) 100% of the selling price thereafter.
2If, at any time, however, the tax under this Act on sales of
3gasohol, as defined in the Use Tax Act, is imposed at the rate
4of 1.25%, then the tax imposed by this Act applies to 100% of
5the proceeds of sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10December 31, 2023 but applies to 100% of the selling price
11thereafter.
12    With respect to biodiesel blends, as defined in the Use
13Tax Act, with no less than 1% and no more than 10% biodiesel,
14the tax imposed by this Act applies to (i) 80% of the selling
15price of property transferred as an incident to the sale of
16service on or after July 1, 2003 and on or before December 31,
172018 and (ii) 100% of the proceeds of the selling price after
18December 31, 2018 and before January 1, 2024. On and after
19January 1, 2024 and on or before December 31, 2030, the
20taxation of biodiesel, renewable diesel, and biodiesel blends
21shall be as provided in Section 3-5.1 of the Use Tax Act. If,
22at any time, however, the tax under this Act on sales of
23biodiesel blends, as defined in the Use Tax Act, with no less
24than 1% and no more than 10% biodiesel is imposed at the rate
25of 1.25%, then the tax imposed by this Act applies to 100% of
26the proceeds of sales of biodiesel blends with no less than 1%

 

 

HB2336- 52 -LRB103 05332 SPS 50351 b

1and no more than 10% biodiesel made during that time.
2    With respect to biodiesel, as defined in the Use Tax Act,
3and biodiesel blends, as defined in the Use Tax Act, with more
4than 10% but no more than 99% biodiesel, the tax imposed by
5this Act does not apply to the proceeds of the selling price of
6property transferred as an incident to the sale of service on
7or after July 1, 2003 and on or before December 31, 2023. On
8and after January 1, 2024 and on or before December 31, 2030,
9the taxation of biodiesel, renewable diesel, and biodiesel
10blends shall be as provided in Section 3-5.1 of the Use Tax
11Act.
12    At the election of any registered serviceman made for each
13fiscal year, sales of service in which the aggregate annual
14cost price of tangible personal property transferred as an
15incident to the sales of service is less than 35%, or 75% in
16the case of servicemen transferring prescription drugs or
17servicemen engaged in graphic arts production, of the
18aggregate annual total gross receipts from all sales of
19service, the tax imposed by this Act shall be based on the
20serviceman's cost price of the tangible personal property
21transferred as an incident to the sale of those services.
22    Until July 1, 2022 and beginning again on July 1, 2023
23until January 1, 2024, the tax shall be imposed at the rate of
241% on food prepared for immediate consumption and transferred
25incident to a sale of service subject to this Act or the
26Service Occupation Tax Act by an entity licensed under the

 

 

HB2336- 53 -LRB103 05332 SPS 50351 b

1Hospital Licensing Act, the Nursing Home Care Act, the
2Assisted Living and Shared Housing Act, the ID/DD Community
3Care Act, the MC/DD Act, the Specialized Mental Health
4Rehabilitation Act of 2013, or the Child Care Act of 1969, or
5an entity that holds a permit issued pursuant to the Life Care
6Facilities Act. Until July 1, 2022 and beginning again on July
71, 2023 until January 1, 2024, the tax shall also be imposed at
8the rate of 1% on food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, and food that has been prepared for
12immediate consumption and is not otherwise included in this
13paragraph).
14    Beginning on July 1, 2022 and until July 1, 2023, the tax
15shall be imposed at the rate of 0% on food prepared for
16immediate consumption and transferred incident to a sale of
17service subject to this Act or the Service Occupation Tax Act
18by an entity licensed under the Hospital Licensing Act, the
19Nursing Home Care Act, the Assisted Living and Shared Housing
20Act, the ID/DD Community Care Act, the MC/DD Act, the
21Specialized Mental Health Rehabilitation Act of 2013, or the
22Child Care Act of 1969, or an entity that holds a permit issued
23pursuant to the Life Care Facilities Act. Beginning on July 1,
242022 and until July 1, 2023, the tax shall also be imposed at
25the rate of 0% on food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

HB2336- 54 -LRB103 05332 SPS 50351 b

1alcoholic beverages, food consisting of or infused with adult
2use cannabis, soft drinks, and food that has been prepared for
3immediate consumption and is not otherwise included in this
4paragraph).
5    The tax shall also be imposed at the rate of 1% on
6prescription and nonprescription medicines, drugs, medical
7appliances, products classified as Class III medical devices
8by the United States Food and Drug Administration that are
9used for cancer treatment pursuant to a prescription, as well
10as any accessories and components related to those devices,
11modifications to a motor vehicle for the purpose of rendering
12it usable by a person with a disability, and insulin, blood
13sugar testing materials, syringes, and needles used by human
14diabetics. Beginning on January 1, 2024 items that had been
15subject to a 1% rate of tax under this paragraph shall be
16exempt as provided in item (34) of Section 3-5. For the
17purposes of this Section, until September 1, 2009: the term
18"soft drinks" means any complete, finished, ready-to-use,
19non-alcoholic drink, whether carbonated or not, including, but
20not limited to, soda water, cola, fruit juice, vegetable
21juice, carbonated water, and all other preparations commonly
22known as soft drinks of whatever kind or description that are
23contained in any closed or sealed bottle, can, carton, or
24container, regardless of size; but "soft drinks" does not
25include coffee, tea, non-carbonated water, infant formula,
26milk or milk products as defined in the Grade A Pasteurized

 

 

HB2336- 55 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 56 -LRB103 05332 SPS 50351 b

1other ingredients or flavorings in the form of bars, drops, or
2pieces. "Candy" does not include any preparation that contains
3flour or requires refrigeration.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "nonprescription medicines and
6drugs" does not include grooming and hygiene products. For
7purposes of this Section, "grooming and hygiene products"
8includes, but is not limited to, soaps and cleaning solutions,
9shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10lotions and screens, unless those products are available by
11prescription only, regardless of whether the products meet the
12definition of "over-the-counter-drugs". For the purposes of
13this paragraph, "over-the-counter-drug" means a drug for human
14use that contains a label that identifies the product as a drug
15as required by 21 CFR C.F.R. § 201.66. The
16"over-the-counter-drug" label includes:
17        (A) a A "Drug Facts" panel; or
18        (B) a A statement of the "active ingredient(s)" with a
19    list of those ingredients contained in the compound,
20    substance or preparation.
21    Beginning on January 1, 2014 (the effective date of Public
22Act 98-122), "prescription and nonprescription medicines and
23drugs" includes medical cannabis purchased from a registered
24dispensing organization under the Compassionate Use of Medical
25Cannabis Program Act.
26    As used in this Section, "adult use cannabis" means

 

 

HB2336- 57 -LRB103 05332 SPS 50351 b

1cannabis subject to tax under the Cannabis Cultivation
2Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3and does not include cannabis subject to tax under the
4Compassionate Use of Medical Cannabis Program Act.
5    If the property that is acquired from a serviceman is
6acquired outside Illinois and used outside Illinois before
7being brought to Illinois for use here and is taxable under
8this Act, the "selling price" on which the tax is computed
9shall be reduced by an amount that represents a reasonable
10allowance for depreciation for the period of prior
11out-of-state use.
12(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
13102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
1420, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
1560-20, eff. 4-19-22; revised 6-1-22.)
 
16    Section 15. The Service Occupation Tax Act is amended by
17changing Sections 3-5 and 3-10 as follows:
 
18    (35 ILCS 115/3-5)
19    Sec. 3-5. Exemptions. The following tangible personal
20property is exempt from the tax imposed by this Act:
21    (1) Personal property sold by a corporation, society,
22association, foundation, institution, or organization, other
23than a limited liability company, that is organized and
24operated as a not-for-profit service enterprise for the

 

 

HB2336- 58 -LRB103 05332 SPS 50351 b

1benefit of persons 65 years of age or older if the personal
2property was not purchased by the enterprise for the purpose
3of resale by the enterprise.
4    (2) Personal property purchased by a not-for-profit
5Illinois county fair association for use in conducting,
6operating, or promoting the county fair.
7    (3) Personal property purchased by any not-for-profit arts
8or cultural organization that establishes, by proof required
9by the Department by rule, that it has received an exemption
10under Section 501(c)(3) of the Internal Revenue Code and that
11is organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after July 1, 2001 (the
18effective date of Public Act 92-35), however, an entity
19otherwise eligible for this exemption shall not make tax-free
20purchases unless it has an active identification number issued
21by the Department.
22    (4) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26    (5) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new
3and used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product. Beginning on
9July 1, 2017, graphic arts machinery and equipment is included
10in the manufacturing and assembling machinery and equipment
11exemption under Section 2 of this Act.
12    (6) Personal property sold by a teacher-sponsored student
13organization affiliated with an elementary or secondary school
14located in Illinois.
15    (7) Farm machinery and equipment, both new and used,
16including that manufactured on special order, certified by the
17purchaser to be used primarily for production agriculture or
18State or federal agricultural programs, including individual
19replacement parts for the machinery and equipment, including
20machinery and equipment purchased for lease, and including
21implements of husbandry defined in Section 1-130 of the
22Illinois Vehicle Code, farm machinery and agricultural
23chemical and fertilizer spreaders, and nurse wagons required
24to be registered under Section 3-809 of the Illinois Vehicle
25Code, but excluding other motor vehicles required to be
26registered under the Illinois Vehicle Code. Horticultural

 

 

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1polyhouses or hoop houses used for propagating, growing, or
2overwintering plants shall be considered farm machinery and
3equipment under this item (7). Agricultural chemical tender
4tanks and dry boxes shall include units sold separately from a
5motor vehicle required to be licensed and units sold mounted
6on a motor vehicle required to be licensed if the selling price
7of the tender is separately stated.
8    Farm machinery and equipment shall include precision
9farming equipment that is installed or purchased to be
10installed on farm machinery and equipment including, but not
11limited to, tractors, harvesters, sprayers, planters, seeders,
12or spreaders. Precision farming equipment includes, but is not
13limited to, soil testing sensors, computers, monitors,
14software, global positioning and mapping systems, and other
15such equipment.
16    Farm machinery and equipment also includes computers,
17sensors, software, and related equipment used primarily in the
18computer-assisted operation of production agriculture
19facilities, equipment, and activities such as, but not limited
20to, the collection, monitoring, and correlation of animal and
21crop data for the purpose of formulating animal diets and
22agricultural chemicals. This item (7) is exempt from the
23provisions of Section 3-55.
24    (8) Until June 30, 2013, fuel and petroleum products sold
25to or used by an air common carrier, certified by the carrier
26to be used for consumption, shipment, or storage in the

 

 

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

 

 

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1(iii) pumps and pump-jack units, (iv) storage tanks and flow
2lines, (v) any individual replacement part for oil field
3exploration, drilling, and production equipment, and (vi)
4machinery and equipment purchased for lease; but excluding
5motor vehicles required to be registered under the Illinois
6Vehicle Code.
7    (11) Photoprocessing machinery and equipment, including
8repair and replacement parts, both new and used, including
9that manufactured on special order, certified by the purchaser
10to be used primarily for photoprocessing, and including
11photoprocessing machinery and equipment purchased for lease.
12    (12) Until July 1, 2028, coal and aggregate exploration,
13mining, off-highway hauling, processing, maintenance, and
14reclamation equipment, including replacement parts and
15equipment, and including equipment purchased for lease, but
16excluding motor vehicles required to be registered under the
17Illinois Vehicle Code. The changes made to this Section by
18Public Act 97-767 apply on and after July 1, 2003, but no claim
19for credit or refund is allowed on or after August 16, 2013
20(the effective date of Public Act 98-456) for such taxes paid
21during the period beginning July 1, 2003 and ending on August
2216, 2013 (the effective date of Public Act 98-456).
23    (13) Beginning January 1, 1992 and through June 30, 2016,
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages,
26soft drinks and food that has been prepared for immediate

 

 

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1consumption) and prescription and non-prescription medicines,
2drugs, medical appliances, and insulin, urine testing
3materials, syringes, and needles used by diabetics, for human
4use, when purchased for use by a person receiving medical
5assistance under Article V of the Illinois Public Aid Code who
6resides in a licensed long-term care facility, as defined in
7the Nursing Home Care Act, or in a licensed facility as defined
8in the ID/DD Community Care Act, the MC/DD Act, or the
9Specialized Mental Health Rehabilitation Act of 2013.
10    (14) Semen used for artificial insemination of livestock
11for direct agricultural production.
12    (15) Horses, or interests in horses, registered with and
13meeting the requirements of any of the Arabian Horse Club
14Registry of America, Appaloosa Horse Club, American Quarter
15Horse Association, United States Trotting Association, or
16Jockey Club, as appropriate, used for purposes of breeding or
17racing for prizes. This item (15) is exempt from the
18provisions of Section 3-55, and the exemption provided for
19under this item (15) applies for all periods beginning May 30,
201995, but no claim for credit or refund is allowed on or after
21January 1, 2008 (the effective date of Public Act 95-88) for
22such taxes paid during the period beginning May 30, 2000 and
23ending on January 1, 2008 (the effective date of Public Act
2495-88).
25    (16) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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1including but not limited to municipal roads and streets,
2access roads, bridges, sidewalks, waste disposal systems,
3water and sewer line extensions, water distribution and
4purification facilities, storm water drainage and retention
5facilities, and sewage treatment facilities, resulting from a
6State or federally declared disaster in Illinois or bordering
7Illinois when such repairs are initiated on facilities located
8in the declared disaster area within 6 months after the
9disaster.
10    (20) Beginning July 1, 1999, game or game birds sold at a
11"game breeding and hunting preserve area" as that term is used
12in the Wildlife Code. This paragraph is exempt from the
13provisions of Section 3-55.
14    (21) A motor vehicle, as that term is defined in Section
151-146 of the Illinois Vehicle Code, that is donated to a
16corporation, limited liability company, society, association,
17foundation, or institution that is determined by the
18Department to be organized and operated exclusively for
19educational purposes. For purposes of this exemption, "a
20corporation, limited liability company, society, association,
21foundation, or institution organized and operated exclusively
22for educational purposes" means all tax-supported public
23schools, private schools that offer systematic instruction in
24useful branches of learning by methods common to public
25schools and that compare favorably in their scope and
26intensity with the course of study presented in tax-supported

 

 

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1schools, and vocational or technical schools or institutes
2organized and operated exclusively to provide a course of
3study of not less than 6 weeks duration and designed to prepare
4individuals to follow a trade or to pursue a manual,
5technical, mechanical, industrial, business, or commercial
6occupation.
7    (22) Beginning January 1, 2000, personal property,
8including food, purchased through fundraising events for the
9benefit of a public or private elementary or secondary school,
10a group of those schools, or one or more school districts if
11the events are sponsored by an entity recognized by the school
12district that consists primarily of volunteers and includes
13parents and teachers of the school children. This paragraph
14does not apply to fundraising events (i) for the benefit of
15private home instruction or (ii) for which the fundraising
16entity purchases the personal property sold at the events from
17another individual or entity that sold the property for the
18purpose of resale by the fundraising entity and that profits
19from the sale to the fundraising entity. This paragraph is
20exempt from the provisions of Section 3-55.
21    (23) Beginning January 1, 2000 and through December 31,
222001, new or used automatic vending machines that prepare and
23serve hot food and beverages, including coffee, soup, and
24other items, and replacement parts for these machines.
25Beginning January 1, 2002 and through June 30, 2003, machines
26and parts for machines used in commercial, coin-operated

 

 

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1amusement and vending business if a use or occupation tax is
2paid on the gross receipts derived from the use of the
3commercial, coin-operated amusement and vending machines. This
4paragraph is exempt from the provisions of Section 3-55.
5    (24) Beginning on August 2, 2001 (the effective date of
6Public Act 92-227), computers and communications equipment
7utilized for any hospital purpose and equipment used in the
8diagnosis, analysis, or treatment of hospital patients sold to
9a lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time of the purchase, to a
11hospital that has been issued an active tax exemption
12identification number by the Department under Section 1g of
13the Retailers' Occupation Tax Act. This paragraph is exempt
14from the provisions of Section 3-55.
15    (25) Beginning on August 2, 2001 (the effective date of
16Public Act 92-227), personal property sold to a lessor who
17leases the property, under a lease of one year or longer
18executed or in effect at the time of the purchase, to a
19governmental body that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. This paragraph is exempt
22from the provisions of Section 3-55.
23    (26) Beginning on January 1, 2002 and through June 30,
242016, tangible personal property purchased from an Illinois
25retailer by a taxpayer engaged in centralized purchasing
26activities in Illinois who will, upon receipt of the property

 

 

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1in Illinois, temporarily store the property in Illinois (i)
2for the purpose of subsequently transporting it outside this
3State for use or consumption thereafter solely outside this
4State or (ii) for the purpose of being processed, fabricated,
5or manufactured into, attached to, or incorporated into other
6tangible personal property to be transported outside this
7State and thereafter used or consumed solely outside this
8State. The Director of Revenue shall, pursuant to rules
9adopted in accordance with the Illinois Administrative
10Procedure Act, issue a permit to any taxpayer in good standing
11with the Department who is eligible for the exemption under
12this paragraph (26). The permit issued under this paragraph
13(26) shall authorize the holder, to the extent and in the
14manner specified in the rules adopted under this Act, to
15purchase tangible personal property from a retailer exempt
16from the taxes imposed by this Act. Taxpayers shall maintain
17all necessary books and records to substantiate the use and
18consumption of all such tangible personal property outside of
19the State of Illinois.
20    (27) Beginning January 1, 2008, tangible personal property
21used in the construction or maintenance of a community water
22supply, as defined under Section 3.145 of the Environmental
23Protection Act, that is operated by a not-for-profit
24corporation that holds a valid water supply permit issued
25under Title IV of the Environmental Protection Act. This
26paragraph is exempt from the provisions of Section 3-55.

 

 

HB2336- 69 -LRB103 05332 SPS 50351 b

1    (28) Tangible personal property sold to a
2public-facilities corporation, as described in Section
311-65-10 of the Illinois Municipal Code, for purposes of
4constructing or furnishing a municipal convention hall, but
5only if the legal title to the municipal convention hall is
6transferred to the municipality without any further
7consideration by or on behalf of the municipality at the time
8of the completion of the municipal convention hall or upon the
9retirement or redemption of any bonds or other debt
10instruments issued by the public-facilities corporation in
11connection with the development of the municipal convention
12hall. This exemption includes existing public-facilities
13corporations as provided in Section 11-65-25 of the Illinois
14Municipal Code. This paragraph is exempt from the provisions
15of Section 3-55.
16    (29) Beginning January 1, 2010 and continuing through
17December 31, 2024, materials, parts, equipment, components,
18and furnishings incorporated into or upon an aircraft as part
19of the modification, refurbishment, completion, replacement,
20repair, or maintenance of the aircraft. This exemption
21includes consumable supplies used in the modification,
22refurbishment, completion, replacement, repair, and
23maintenance of aircraft, but excludes any materials, parts,
24equipment, components, and consumable supplies used in the
25modification, replacement, repair, and maintenance of aircraft
26engines or power plants, whether such engines or power plants

 

 

HB2336- 70 -LRB103 05332 SPS 50351 b

1are installed or uninstalled upon any such aircraft.
2"Consumable supplies" include, but are not limited to,
3adhesive, tape, sandpaper, general purpose lubricants,
4cleaning solution, latex gloves, and protective films. This
5exemption applies only to the transfer of qualifying tangible
6personal property incident to the modification, refurbishment,
7completion, replacement, repair, or maintenance of an aircraft
8by persons who (i) hold an Air Agency Certificate and are
9empowered to operate an approved repair station by the Federal
10Aviation Administration, (ii) have a Class IV Rating, and
11(iii) conduct operations in accordance with Part 145 of the
12Federal Aviation Regulations. The exemption does not include
13aircraft operated by a commercial air carrier providing
14scheduled passenger air service pursuant to authority issued
15under Part 121 or Part 129 of the Federal Aviation
16Regulations. The changes made to this paragraph (29) by Public
17Act 98-534 are declarative of existing law. It is the intent of
18the General Assembly that the exemption under this paragraph
19(29) applies continuously from January 1, 2010 through
20December 31, 2024; however, no claim for credit or refund is
21allowed for taxes paid as a result of the disallowance of this
22exemption on or after January 1, 2015 and prior to February 5,
232020 (the effective date of Public Act 101-629) this
24amendatory Act of the 101st General Assembly.
25    (30) Beginning January 1, 2017 and through December 31,
262026, menstrual pads, tampons, and menstrual cups.

 

 

HB2336- 71 -LRB103 05332 SPS 50351 b

1    (31) Tangible personal property transferred to a purchaser
2who is exempt from tax by operation of federal law. This
3paragraph is exempt from the provisions of Section 3-55.
4    (32) Qualified tangible personal property used in the
5construction or operation of a data center that has been
6granted a certificate of exemption by the Department of
7Commerce and Economic Opportunity, whether that tangible
8personal property is purchased by the owner, operator, or
9tenant of the data center or by a contractor or subcontractor
10of the owner, operator, or tenant. Data centers that would
11have qualified for a certificate of exemption prior to January
121, 2020 had Public Act 101-31 this amendatory Act of the 101st
13General Assembly been in effect, may apply for and obtain an
14exemption for subsequent purchases of computer equipment or
15enabling software purchased or leased to upgrade, supplement,
16or replace computer equipment or enabling software purchased
17or leased in the original investment that would have
18qualified.
19    The Department of Commerce and Economic Opportunity shall
20grant a certificate of exemption under this item (32) to
21qualified data centers as defined by Section 605-1025 of the
22Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    For the purposes of this item (32):
25        "Data center" means a building or a series of
26    buildings rehabilitated or constructed to house working

 

 

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

 

 

HB2336- 73 -LRB103 05332 SPS 50351 b

1    must obtain from the purchaser a copy of the certificate
2    of eligibility issued by the Department of Commerce and
3    Economic Opportunity.
4    This item (32) is exempt from the provisions of Section
53-55.
6    (33) Beginning July 1, 2022, breast pumps, breast pump
7collection and storage supplies, and breast pump kits. This
8item (33) is exempt from the provisions of Section 3-55. As
9used in this item (33):
10        "Breast pump" means an electrically controlled or
11    manually controlled pump device designed or marketed to be
12    used to express milk from a human breast during lactation,
13    including the pump device and any battery, AC adapter, or
14    other power supply unit that is used to power the pump
15    device and is packaged and sold with the pump device at the
16    time of sale.
17        "Breast pump collection and storage supplies" means
18    items of tangible personal property designed or marketed
19    to be used in conjunction with a breast pump to collect
20    milk expressed from a human breast and to store collected
21    milk until it is ready for consumption.
22        "Breast pump collection and storage supplies"
23    includes, but is not limited to: breast shields and breast
24    shield connectors; breast pump tubes and tubing adapters;
25    breast pump valves and membranes; backflow protectors and
26    backflow protector adaptors; bottles and bottle caps

 

 

HB2336- 74 -LRB103 05332 SPS 50351 b

1    specific to the operation of the breast pump; and breast
2    milk storage bags.
3        "Breast pump collection and storage supplies" does not
4    include: (1) bottles and bottle caps not specific to the
5    operation of the breast pump; (2) breast pump travel bags
6    and other similar carrying accessories, including ice
7    packs, labels, and other similar products; (3) breast pump
8    cleaning supplies; (4) nursing bras, bra pads, breast
9    shells, and other similar products; and (5) creams,
10    ointments, and other similar products that relieve
11    breastfeeding-related symptoms or conditions of the
12    breasts or nipples, unless sold as part of a breast pump
13    kit that is pre-packaged by the breast pump manufacturer
14    or distributor.
15        "Breast pump kit" means a kit that: (1) contains no
16    more than a breast pump, breast pump collection and
17    storage supplies, a rechargeable battery for operating the
18    breast pump, a breastmilk cooler, bottle stands, ice
19    packs, and a breast pump carrying case; and (2) is
20    pre-packaged as a breast pump kit by the breast pump
21    manufacturer or distributor.
22    (34) (33) Tangible personal property sold by or on behalf
23of the State Treasurer pursuant to the Revised Uniform
24Unclaimed Property Act. This item (34) (33) is exempt from the
25provisions of Section 3-55.
26    (35) Beginning January 1, 2024, food prepared for

 

 

HB2336- 75 -LRB103 05332 SPS 50351 b

1immediate consumption and transferred incident to a sale of
2service subject to this Act or the Service Occupation Tax Act
3by an entity licensed under the Hospital Licensing Act, the
4Nursing Home Care Act, the Assisted Living and Shared Housing
5Act, the ID/DD Community Care Act, the MC/DD Act, the
6Specialized Mental Health Rehabilitation Act of 2013, or the
7Child Care Act of 1969, or an entity that holds a permit issued
8pursuant to the Life Care Facilities Act; food for human
9consumption that is to be consumed off the premises where it is
10sold (other than alcoholic beverages, food consisting of or
11infused with adult use cannabis, soft drinks, and food that
12has been prepared for immediate consumption and is not
13otherwise included in this paragraph); and prescription and
14nonprescription medicines, drugs, medical appliances, products
15classified as Class III medical devices by the United States
16Food and Drug Administration that are used for cancer
17treatment pursuant to a prescription, as well as any
18accessories and components related to those devices,
19modifications to a motor vehicle for the purpose of rendering
20it usable by a person with a disability, and insulin, blood
21sugar testing materials, syringes, and needles used by human
22diabetics. This item (35) is exempt from the provisions of
23Section 3-55.
24(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
25101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2670, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section

 

 

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175-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
2    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
3    Sec. 3-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5the "selling price", as defined in Section 2 of the Service Use
6Tax Act, of the tangible personal property. For the purpose of
7computing this tax, in no event shall the "selling price" be
8less than the cost price to the serviceman of the tangible
9personal property transferred. The selling price of each item
10of tangible personal property transferred as an incident of a
11sale of service may be shown as a distinct and separate item on
12the serviceman's billing to the service customer. If the
13selling price is not so shown, the selling price of the
14tangible personal property is deemed to be 50% of the
15serviceman's entire billing to the service customer. When,
16however, a serviceman contracts to design, develop, and
17produce special order machinery or equipment, the tax imposed
18by this Act shall be based on the serviceman's cost price of
19the tangible personal property transferred incident to the
20completion of the contract.
21    Beginning on July 1, 2000 and through December 31, 2000,
22with respect to motor fuel, as defined in Section 1.1 of the
23Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24the Use Tax Act, the tax is imposed at the rate of 1.25%.
25    With respect to gasohol, as defined in the Use Tax Act, the

 

 

HB2336- 77 -LRB103 05332 SPS 50351 b

1tax imposed by this Act shall apply to (i) 70% of the cost
2price of property transferred as an incident to the sale of
3service on or after January 1, 1990, and before July 1, 2003,
4(ii) 80% of the selling price of property transferred as an
5incident to the sale of service on or after July 1, 2003 and on
6or before July 1, 2017, and (iii) 100% of the cost price
7thereafter. If, at any time, however, the tax under this Act on
8sales of gasohol, as defined in the Use Tax Act, is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of gasohol made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15December 31, 2023 but applies to 100% of the selling price
16thereafter.
17    With respect to biodiesel blends, as defined in the Use
18Tax Act, with no less than 1% and no more than 10% biodiesel,
19the tax imposed by this Act applies to (i) 80% of the selling
20price of property transferred as an incident to the sale of
21service on or after July 1, 2003 and on or before December 31,
222018 and (ii) 100% of the proceeds of the selling price after
23December 31, 2018 and before January 1, 2024. On and after
24January 1, 2024 and on or before December 31, 2030, the
25taxation of biodiesel, renewable diesel, and biodiesel blends
26shall be as provided in Section 3-5.1 of the Use Tax Act. If,

 

 

HB2336- 78 -LRB103 05332 SPS 50351 b

1at any time, however, the tax under this Act on sales of
2biodiesel blends, as defined in the Use Tax Act, with no less
3than 1% and no more than 10% biodiesel is imposed at the rate
4of 1.25%, then the tax imposed by this Act applies to 100% of
5the proceeds of sales of biodiesel blends with no less than 1%
6and no more than 10% biodiesel made during that time.
7    With respect to biodiesel, as defined in the Use Tax Act,
8and biodiesel blends, as defined in the Use Tax Act, with more
9than 10% but no more than 99% biodiesel material, the tax
10imposed by this Act does not apply to the proceeds of the
11selling price of property transferred as an incident to the
12sale of service on or after July 1, 2003 and on or before
13December 31, 2023. On and after January 1, 2024 and on or
14before December 31, 2030, the taxation of biodiesel, renewable
15diesel, and biodiesel blends shall be as provided in Section
163-5.1 of the Use Tax Act.
17    At the election of any registered serviceman made for each
18fiscal year, sales of service in which the aggregate annual
19cost price of tangible personal property transferred as an
20incident to the sales of service is less than 35%, or 75% in
21the case of servicemen transferring prescription drugs or
22servicemen engaged in graphic arts production, of the
23aggregate annual total gross receipts from all sales of
24service, the tax imposed by this Act shall be based on the
25serviceman's cost price of the tangible personal property
26transferred incident to the sale of those services.

 

 

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1    Until July 1, 2022 and beginning again on July 1, 2023
2until January 1, 2024, the tax shall be imposed at the rate of
31% on food prepared for immediate consumption and transferred
4incident to a sale of service subject to this Act or the
5Service Use Tax Act by an entity licensed under the Hospital
6Licensing Act, the Nursing Home Care Act, the Assisted Living
7and Shared Housing Act, the ID/DD Community Care Act, the
8MC/DD Act, the Specialized Mental Health Rehabilitation Act of
92013, or the Child Care Act of 1969, or an entity that holds a
10permit issued pursuant to the Life Care Facilities Act. Until
11July 1, 2022 and beginning again on July 1, 2023 until January
121, 2024, the tax shall also be imposed at the rate of 1% on
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages,
15food consisting of or infused with adult use cannabis, soft
16drinks, and food that has been prepared for immediate
17consumption and is not otherwise included in this paragraph).
18    Beginning on July 1, 2022 and until July 1, 2023, the tax
19shall be imposed at the rate of 0% on food prepared for
20immediate consumption and transferred incident to a sale of
21service subject to this Act or the Service Use Tax Act by an
22entity licensed under the Hospital Licensing Act, the Nursing
23Home Care Act, the Assisted Living and Shared Housing Act, the
24ID/DD Community Care Act, the MC/DD Act, the Specialized
25Mental Health Rehabilitation Act of 2013, or the Child Care
26Act of 1969, or an entity that holds a permit issued pursuant

 

 

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1to the Life Care Facilities Act. Beginning July 1, 2022 and
2until July 1, 2023, the tax shall also be imposed at the rate
3of 0% on food for human consumption that is to be consumed off
4the premises where it is sold (other than alcoholic beverages,
5food consisting of or infused with adult use cannabis, soft
6drinks, and food that has been prepared for immediate
7consumption and is not otherwise included in this paragraph).
8    The tax shall also be imposed at the rate of 1% on
9prescription and nonprescription medicines, drugs, medical
10appliances, products classified as Class III medical devices
11by the United States Food and Drug Administration that are
12used for cancer treatment pursuant to a prescription, as well
13as any accessories and components related to those devices,
14modifications to a motor vehicle for the purpose of rendering
15it usable by a person with a disability, and insulin, blood
16sugar testing materials, syringes, and needles used by human
17diabetics. Beginning on January 1, 2024, items that had been
18subject to a 1% rate of tax under this paragraph shall be
19exempt as provided in item (35) of Section 3-5. For the
20purposes of this Section, until September 1, 2009: the term
21"soft drinks" means any complete, finished, ready-to-use,
22non-alcoholic drink, whether carbonated or not, including, but
23not limited to, soda water, cola, fruit juice, vegetable
24juice, carbonated water, and all other preparations commonly
25known as soft drinks of whatever kind or description that are
26contained in any closed or sealed can, carton, or container,

 

 

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

 

 

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1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or
4other ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 CFR C.F.R. § 201.66. The
19"over-the-counter-drug" label includes:
20        (A) a A "Drug Facts" panel; or
21        (B) a A statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on January 1, 2014 (the effective date of Public
25Act 98-122), "prescription and nonprescription medicines and
26drugs" includes medical cannabis purchased from a registered

 

 

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1dispensing organization under the Compassionate Use of Medical
2Cannabis Program Act.
3    As used in this Section, "adult use cannabis" means
4cannabis subject to tax under the Cannabis Cultivation
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6and does not include cannabis subject to tax under the
7Compassionate Use of Medical Cannabis Program Act.
8(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
9102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
1020, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
1160-25, eff. 4-19-22; revised 6-1-22.)
 
12    Section 20. The Retailers' Occupation Tax Act is amended
13by changing Sections 2-5 and 2-10 as follows:
 
14    (35 ILCS 120/2-5)
15    Sec. 2-5. Exemptions. Gross receipts from proceeds from
16the sale of the following tangible personal property are
17exempt from the tax imposed by this Act:
18        (1) Farm chemicals.
19        (2) Farm machinery and equipment, both new and used,
20    including that manufactured on special order, certified by
21    the purchaser to be used primarily for production
22    agriculture or State or federal agricultural programs,
23    including individual replacement parts for the machinery
24    and equipment, including machinery and equipment purchased

 

 

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

 

 

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1    facilities, equipment, and activities such as, but not
2    limited to, the collection, monitoring, and correlation of
3    animal and crop data for the purpose of formulating animal
4    diets and agricultural chemicals. This item (2) is exempt
5    from the provisions of Section 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) Personal property sold to a governmental body, to
10    a corporation, society, association, foundation, or
11    institution organized and operated exclusively for
12    charitable, religious, or educational purposes, or to a
13    not-for-profit corporation, society, association,
14    foundation, institution, or organization that has no
15    compensated officers or employees and that is organized
16    and operated primarily for the recreation of persons 55
17    years of age or older. A limited liability company may
18    qualify for the exemption under this paragraph only if the
19    limited liability company is organized and operated
20    exclusively for educational purposes. On and after July 1,
21    1987, however, no entity otherwise eligible for this
22    exemption shall make tax-free purchases unless it has an
23    active identification number issued by the Department.
24        (12) (Blank).
25        (12-5) On and after July 1, 2003 and through June 30,
26    2004, motor vehicles of the second division with a gross

 

 

HB2336- 88 -LRB103 05332 SPS 50351 b

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

 

 

HB2336- 89 -LRB103 05332 SPS 50351 b

1        (14) Machinery and equipment that will be used by the
2    purchaser, or a lessee of the purchaser, primarily in the
3    process of manufacturing or assembling tangible personal
4    property for wholesale or retail sale or lease, whether
5    the sale or lease is made directly by the manufacturer or
6    by some other person, whether the materials used in the
7    process are owned by the manufacturer or some other
8    person, or whether the sale or lease is made apart from or
9    as an incident to the seller's engaging in the service
10    occupation of producing machines, tools, dies, jigs,
11    patterns, gauges, or other similar items of no commercial
12    value on special order for a particular purchaser. The
13    exemption provided by this paragraph (14) does not include
14    machinery and equipment used in (i) the generation of
15    electricity for wholesale or retail sale; (ii) the
16    generation or treatment of natural or artificial gas for
17    wholesale or retail sale that is delivered to customers
18    through pipes, pipelines, or mains; or (iii) the treatment
19    of water for wholesale or retail sale that is delivered to
20    customers through pipes, pipelines, or mains. The
21    provisions of Public Act 98-583 are declaratory of
22    existing law as to the meaning and scope of this
23    exemption. Beginning on July 1, 2017, the exemption
24    provided by this paragraph (14) includes, but is not
25    limited to, graphic arts machinery and equipment, as
26    defined in paragraph (4) of this Section.

 

 

HB2336- 90 -LRB103 05332 SPS 50351 b

1        (15) Proceeds of mandatory service charges separately
2    stated on customers' bills for purchase and consumption of
3    food and beverages, to the extent that the proceeds of the
4    service charge are in fact turned over as tips or as a
5    substitute for tips to the employees who participate
6    directly in preparing, serving, hosting or cleaning up the
7    food or beverage function with respect to which the
8    service charge is imposed.
9        (16) Tangible personal property sold to a purchaser if
10    the purchaser is exempt from use tax by operation of
11    federal law. This paragraph is exempt from the provisions
12    of Section 2-70.
13        (17) Tangible personal property sold to a common
14    carrier by rail or motor that receives the physical
15    possession of the property in Illinois and that transports
16    the property, or shares with another common carrier in the
17    transportation of the property, out of Illinois on a
18    standard uniform bill of lading showing the seller of the
19    property as the shipper or consignor of the property to a
20    destination outside Illinois, for use outside Illinois.
21        (18) Legal tender, currency, medallions, or gold or
22    silver coinage issued by the State of Illinois, the
23    government of the United States of America, or the
24    government of any foreign country, and bullion.
25        (19) Until July 1, 2003, oil field exploration,
26    drilling, and production equipment, including (i) rigs and

 

 

HB2336- 91 -LRB103 05332 SPS 50351 b

1    parts of rigs, rotary rigs, cable tool rigs, and workover
2    rigs, (ii) pipe and tubular goods, including casing and
3    drill strings, (iii) pumps and pump-jack units, (iv)
4    storage tanks and flow lines, (v) any individual
5    replacement part for oil field exploration, drilling, and
6    production equipment, and (vi) machinery and equipment
7    purchased for lease; but excluding motor vehicles required
8    to be registered under the Illinois Vehicle Code.
9        (20) Photoprocessing machinery and equipment,
10    including repair and replacement parts, both new and used,
11    including that manufactured on special order, certified by
12    the purchaser to be used primarily for photoprocessing,
13    and including photoprocessing machinery and equipment
14    purchased for lease.
15        (21) Until July 1, 2028, coal and aggregate
16    exploration, mining, off-highway hauling, processing,
17    maintenance, and reclamation equipment, including
18    replacement parts and equipment, and including equipment
19    purchased for lease, but excluding motor vehicles required
20    to be registered under the Illinois Vehicle Code. The
21    changes made to this Section by Public Act 97-767 apply on
22    and after July 1, 2003, but no claim for credit or refund
23    is allowed on or after August 16, 2013 (the effective date
24    of Public Act 98-456) for such taxes paid during the
25    period beginning July 1, 2003 and ending on August 16,
26    2013 (the effective date of Public Act 98-456).

 

 

HB2336- 92 -LRB103 05332 SPS 50351 b

1        (22) Until June 30, 2013, fuel and petroleum products
2    sold to or used by an air carrier, certified by the carrier
3    to be used for consumption, shipment, or storage in the
4    conduct of its business as an air common carrier, for a
5    flight destined for or returning from a location or
6    locations outside the United States without regard to
7    previous or subsequent domestic stopovers.
8        Beginning July 1, 2013, fuel and petroleum products
9    sold to or used by an air carrier, certified by the carrier
10    to be used for consumption, shipment, or storage in the
11    conduct of its business as an air common carrier, for a
12    flight that (i) is engaged in foreign trade or is engaged
13    in trade between the United States and any of its
14    possessions and (ii) transports at least one individual or
15    package for hire from the city of origination to the city
16    of final destination on the same aircraft, without regard
17    to a change in the flight number of that aircraft.
18        (23) A transaction in which the purchase order is
19    received by a florist who is located outside Illinois, but
20    who has a florist located in Illinois deliver the property
21    to the purchaser or the purchaser's donee in Illinois.
22        (24) Fuel consumed or used in the operation of ships,
23    barges, or vessels that are used primarily in or for the
24    transportation of property or the conveyance of persons
25    for hire on rivers bordering on this State if the fuel is
26    delivered by the seller to the purchaser's barge, ship, or

 

 

HB2336- 93 -LRB103 05332 SPS 50351 b

1    vessel while it is afloat upon that bordering river.
2        (25) Except as provided in item (25-5) of this
3    Section, a motor vehicle sold in this State to a
4    nonresident even though the motor vehicle is delivered to
5    the nonresident in this State, if the motor vehicle is not
6    to be titled in this State, and if a drive-away permit is
7    issued to the motor vehicle as provided in Section 3-603
8    of the Illinois Vehicle Code or if the nonresident
9    purchaser has vehicle registration plates to transfer to
10    the motor vehicle upon returning to his or her home state.
11    The issuance of the drive-away permit or having the
12    out-of-state registration plates to be transferred is
13    prima facie evidence that the motor vehicle will not be
14    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
20    the 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
26    time of the sale, the purchaser shall execute a statement,

 

 

HB2336- 94 -LRB103 05332 SPS 50351 b

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
11    require the removal of the vehicle from this state
12    following the filing of an intent to title the vehicle in
13    the purchaser's state of residence if the purchaser titles
14    the vehicle in his or her state of residence within 30 days
15    after the date of sale. The tax collected under this Act in
16    accordance with this item (25-5) shall be proportionately
17    distributed as if the tax were collected at the 6.25%
18    general rate 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
26        authorized approval for return to service, completion

 

 

HB2336- 95 -LRB103 05332 SPS 50351 b

1        of the maintenance record entry, and completion of the
2        test flight and ground test for inspection, as
3        required by 14 CFR C.F.R. 91.407;
4            (2) the aircraft is not based or registered in
5        this 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

 

 

HB2336- 96 -LRB103 05332 SPS 50351 b

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
14    all periods beginning May 30, 1995, but no claim for
15    credit or refund is allowed on or after January 1, 2008
16    (the effective date of Public Act 95-88) for such taxes
17    paid during the period beginning May 30, 2000 and ending
18    on January 1, 2008 (the effective date of Public Act
19    95-88).
20        (28) Computers and communications equipment utilized
21    for any hospital purpose and equipment used in the
22    diagnosis, analysis, or treatment of hospital patients
23    sold to a lessor who leases the equipment, under a lease of
24    one year or longer executed or in effect at the time of the
25    purchase, to a hospital that has been issued an active tax
26    exemption identification number by the Department under

 

 

HB2336- 97 -LRB103 05332 SPS 50351 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    manner specified in the rules adopted under this Act, to
2    purchase tangible personal property from a retailer exempt
3    from the taxes imposed by this Act. Taxpayers shall
4    maintain all necessary books and records to substantiate
5    the use and consumption of all such tangible personal
6    property outside of the State of Illinois.
7        (39) Beginning January 1, 2008, tangible personal
8    property used in the construction or maintenance of a
9    community water supply, as defined under Section 3.145 of
10    the Environmental Protection Act, that is operated by a
11    not-for-profit corporation that holds a valid water supply
12    permit issued under Title IV of the Environmental
13    Protection Act. This paragraph is exempt from the
14    provisions of Section 2-70.
15        (40) Beginning January 1, 2010 and continuing through
16    December 31, 2024, materials, parts, equipment,
17    components, and furnishings incorporated into or upon an
18    aircraft as part of the modification, refurbishment,
19    completion, replacement, repair, or maintenance of the
20    aircraft. This exemption includes consumable supplies used
21    in the modification, refurbishment, completion,
22    replacement, repair, and maintenance of aircraft, but
23    excludes any materials, parts, equipment, components, and
24    consumable supplies used in the modification, replacement,
25    repair, and maintenance of aircraft engines or power
26    plants, whether such engines or power plants are installed

 

 

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1    or uninstalled upon any such aircraft. "Consumable
2    supplies" include, but are not limited to, adhesive, tape,
3    sandpaper, general purpose lubricants, cleaning solution,
4    latex gloves, and protective films. This exemption applies
5    only to the sale of qualifying tangible personal property
6    to persons who modify, refurbish, complete, replace, or
7    maintain an aircraft and who (i) hold an Air Agency
8    Certificate and are empowered to operate an approved
9    repair station by the Federal Aviation Administration,
10    (ii) have a Class IV Rating, and (iii) conduct operations
11    in accordance with Part 145 of the Federal Aviation
12    Regulations. The exemption does not include aircraft
13    operated by a commercial air carrier providing scheduled
14    passenger air service pursuant to authority issued under
15    Part 121 or Part 129 of the Federal Aviation Regulations.
16    The changes made to this paragraph (40) by Public Act
17    98-534 are declarative of existing law. It is the intent
18    of the General Assembly that the exemption under this
19    paragraph (40) applies continuously from January 1, 2010
20    through December 31, 2024; however, no claim for credit or
21    refund is allowed for taxes paid as a result of the
22    disallowance of this exemption on or after January 1, 2015
23    and prior to February 5, 2020 (the effective date of
24    Public Act 101-629) this amendatory Act of the 101st
25    General Assembly.
26        (41) Tangible personal property sold to a

 

 

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1    public-facilities corporation, as described in Section
2    11-65-10 of the Illinois Municipal Code, for purposes of
3    constructing or furnishing a municipal convention hall,
4    but only if the legal title to the municipal convention
5    hall is transferred to the municipality without any
6    further consideration by or on behalf of the municipality
7    at the time of the completion of the municipal convention
8    hall or upon the retirement or redemption of any bonds or
9    other debt instruments issued by the public-facilities
10    corporation in connection with the development of the
11    municipal convention hall. This exemption includes
12    existing public-facilities corporations as provided in
13    Section 11-65-25 of the Illinois Municipal Code. This
14    paragraph is exempt from the provisions of Section 2-70.
15        (42) Beginning January 1, 2017 and through December
16    31, 2026, menstrual pads, tampons, and menstrual cups.
17        (43) Merchandise that is subject to the Rental
18    Purchase Agreement Occupation and Use Tax. The purchaser
19    must certify that the item is purchased to be rented
20    subject to a rental purchase agreement, as defined in the
21    Rental Purchase Agreement Act, and provide proof of
22    registration under the Rental Purchase Agreement
23    Occupation and Use Tax Act. This paragraph is exempt from
24    the provisions of Section 2-70.
25        (44) 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
5    subcontractor of the owner, operator, or tenant. Data
6    centers that would have qualified for a certificate of
7    exemption prior to January 1, 2020 had Public Act 101-31
8    this amendatory Act of the 101st General Assembly been in
9    effect, may apply for and obtain an exemption for
10    subsequent purchases of computer equipment or enabling
11    software purchased or leased to upgrade, supplement, or
12    replace computer equipment or enabling software purchased
13    or leased in the original investment that would have
14    qualified.
15        The Department of Commerce and Economic Opportunity
16    shall grant a certificate of exemption under this item
17    (44) to qualified data centers as defined by Section
18    605-1025 of the Department of Commerce and Economic
19    Opportunity Law of the Civil Administrative Code of
20    Illinois.
21        For the purposes of this item (44):
22            "Data center" means a building or a series of
23        buildings rehabilitated or constructed to house
24        working servers in one physical location or multiple
25        sites within the State of Illinois.
26            "Qualified tangible personal property" means:

 

 

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

 

 

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1        Commerce and Economic Opportunity.
2        This item (44) is exempt from the provisions of
3    Section 2-70.
4        (45) Beginning January 1, 2020 and through December
5    31, 2020, sales of tangible personal property made by a
6    marketplace seller over a marketplace for which tax is due
7    under this Act but for which use tax has been collected and
8    remitted to the Department by a marketplace facilitator
9    under Section 2d of the Use Tax Act are exempt from tax
10    under this Act. A marketplace seller claiming this
11    exemption shall maintain books and records demonstrating
12    that the use tax on such sales has been collected and
13    remitted by a marketplace facilitator. Marketplace sellers
14    that have properly remitted tax under this Act on such
15    sales may file a claim for credit as provided in Section 6
16    of this Act. No claim is allowed, however, for such taxes
17    for which a credit or refund has been issued to the
18    marketplace facilitator under the Use Tax Act, or for
19    which the marketplace facilitator has filed a claim for
20    credit or refund under the Use Tax Act.
21        (46) Beginning July 1, 2022, breast pumps, breast pump
22    collection and storage supplies, and breast pump kits.
23    This item (46) is exempt from the provisions of Section
24    2-70. As used in this item (46):
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        (47) (46) Tangible personal property sold by or on
12    behalf of the State Treasurer pursuant to the Revised
13    Uniform Unclaimed Property Act. This item (47) (46) is
14    exempt from the provisions of Section 2-70.
15        (48) Beginning January 1, 2024, food for human
16    consumption that is to be consumed off the premises where
17    it is sold (other than alcoholic beverages, food
18    consisting of or infused with adult use cannabis, soft
19    drinks, and food that has been prepared for immediate
20    consumption) and prescription and nonprescription
21    medicines, drugs, medical appliances, products classified
22    as Class III medical devices by the United States Food and
23    Drug Administration that are used for cancer treatment
24    pursuant to a prescription, as well as any accessories and
25    components related to those devices, modifications to a
26    motor vehicle for the purpose of rendering it usable by a

 

 

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1    person with a disability, and insulin, blood sugar testing
2    materials, syringes, and needles used by human diabetics.
3    This item (48) is exempt from the provisions of Section
4    2-70.
5(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
6101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
78-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
8102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
9eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
10    (35 ILCS 120/2-10)
11    Sec. 2-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13gross receipts from sales of tangible personal property made
14in the course of business.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    Beginning on August 6, 2010 through August 15, 2010, and
20beginning again on August 5, 2022 through August 14, 2022,
21with respect to sales tax holiday items as defined in Section
222-8 of this Act, the tax is imposed at the rate of 1.25%.
23    Within 14 days after July 1, 2000 (the effective date of
24Public Act 91-872) this amendatory Act of the 91st General
25Assembly, each retailer of motor fuel and gasohol shall cause

 

 

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1the following notice to be posted in a prominently visible
2place on each retail dispensing device that is used to
3dispense motor fuel or gasohol in the State of Illinois: "As of
4July 1, 2000, the State of Illinois has eliminated the State's
5share of sales tax on motor fuel and gasohol through December
631, 2000. The price on this pump should reflect the
7elimination of the tax." The notice shall be printed in bold
8print on a sign that is no smaller than 4 inches by 8 inches.
9The sign shall be clearly visible to customers. Any retailer
10who fails to post or maintain a required sign through December
1131, 2000 is guilty of a petty offense for which the fine shall
12be $500 per day per each retail premises where a violation
13occurs.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act applies to (i) 70% of the proceeds of
16sales made on or after January 1, 1990, and before July 1,
172003, (ii) 80% of the proceeds of sales made on or after July
181, 2003 and on or before July 1, 2017, and (iii) 100% of the
19proceeds of sales made thereafter. If, at any time, however,
20the tax under this Act on sales of gasohol, as defined in the
21Use Tax Act, is imposed at the rate of 1.25%, then the tax
22imposed by this Act applies to 100% of the proceeds of sales of
23gasohol made during that time.
24    With respect to majority blended ethanol fuel, as defined
25in the Use Tax Act, the tax imposed by this Act does not apply
26to the proceeds of sales made on or after July 1, 2003 and on

 

 

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1or before December 31, 2023 but applies to 100% of the proceeds
2of sales made thereafter.
3    With respect to biodiesel blends, as defined in the Use
4Tax Act, with no less than 1% and no more than 10% biodiesel,
5the tax imposed by this Act applies to (i) 80% of the proceeds
6of sales made on or after July 1, 2003 and on or before
7December 31, 2018 and (ii) 100% of the proceeds of sales made
8after December 31, 2018 and before January 1, 2024. On and
9after January 1, 2024 and on or before December 31, 2030, the
10taxation of biodiesel, renewable diesel, and biodiesel blends
11shall be as provided in Section 3-5.1 of the Use Tax Act. If,
12at any time, however, the tax under this Act on sales of
13biodiesel blends, as defined in the Use Tax Act, with no less
14than 1% and no more than 10% biodiesel is imposed at the rate
15of 1.25%, then the tax imposed by this Act applies to 100% of
16the proceeds of sales of biodiesel blends with no less than 1%
17and no more than 10% biodiesel made during that time.
18    With respect to biodiesel, as defined in the Use Tax Act,
19and biodiesel blends, as defined in the Use Tax Act, with more
20than 10% but no more than 99% biodiesel, the tax imposed by
21this Act does not apply to the proceeds of sales made on or
22after July 1, 2003 and on or before December 31, 2023. On and
23after January 1, 2024 and on or before December 31, 2030, the
24taxation of biodiesel, renewable diesel, and biodiesel blends
25shall be as provided in Section 3-5.1 of the Use Tax Act.
26    Until July 1, 2022 and beginning again on July 1, 2023

 

 

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1until January 1, 2024, with respect to food for human
2consumption that is to be consumed off the premises where it is
3sold (other than alcoholic beverages, food consisting of or
4infused with adult use cannabis, soft drinks, and food that
5has been prepared for immediate consumption), the tax is
6imposed at the rate of 1%. Beginning July 1, 2022 and until
7July 1, 2023, with respect to food for human consumption that
8is to be consumed off the premises where it is sold (other than
9alcoholic beverages, food consisting of or infused with adult
10use cannabis, soft drinks, and food that has been prepared for
11immediate consumption), the tax is imposed at the rate of 0%.
12    With respect to prescription and nonprescription
13medicines, drugs, medical appliances, products classified as
14Class III medical devices by the United States Food and Drug
15Administration that are used for cancer treatment pursuant to
16a prescription, as well as any accessories and components
17related to those devices, modifications to a motor vehicle for
18the purpose of rendering it usable by a person with a
19disability, and insulin, blood sugar testing materials,
20syringes, and needles used by human diabetics, the tax is
21imposed at the rate of 1%. Beginning on January 1, 2024, items
22that had been subject to a 1% rate of tax under this paragraph
23shall be exempt as provided in item (48) of Section 2-5.For the
24purposes of this Section, until September 1, 2009: the term
25"soft drinks" means any complete, finished, ready-to-use,
26non-alcoholic drink, whether carbonated or not, including, but

 

 

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

 

 

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

 

 

HB2336- 116 -LRB103 05332 SPS 50351 b

1    substance or preparation.
2    Beginning on January 1, 2014 (the effective date of Public
3Act 98-122) this amendatory Act of the 98th General Assembly,
4"prescription and nonprescription medicines and drugs"
5includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
14102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
154-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
16102-700, Article 65, Section 65-10, eff. 4-19-22; revised
176-1-22.)