Rep. Margaret Croke

Filed: 2/28/2023

 

 


 

 


 
10300HB2518ham001LRB103 28353 HLH 57975 a

1
AMENDMENT TO HOUSE BILL 2518

2    AMENDMENT NO. ______. Amend House Bill 2518 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts
4or cultural organization that establishes, by proof required
5by the Department by rule, that it has received an exemption
6under Section 501(c)(3) of the Internal Revenue Code and that
7is organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after July 1, 2001 (the
14effective date of Public Act 92-35), however, an entity
15otherwise eligible for this exemption shall not make tax-free
16purchases unless it has an active identification number issued
17by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active
5exemption identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new
12and used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon
18a graphic arts product. Beginning on July 1, 2017, graphic
19arts machinery and equipment is included in the manufacturing
20and assembling machinery and equipment exemption under
21paragraph (18).
22    (7) Farm chemicals.
23    (8) Legal tender, currency, medallions, or gold or silver
24coinage issued by the State of Illinois, the government of the
25United States of America, or the government of any foreign
26country, and bullion.

 

 

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

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (11) is exempt from the
15provisions of Section 3-90.
16    (12) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the
19conduct of its business as an air common carrier, for a flight
20destined for or returning from a location or locations outside
21the United States without regard to previous or subsequent
22domestic stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold
24to or used by an air carrier, certified by the carrier to be
25used for consumption, shipment, or storage in the conduct of
26its business as an air common carrier, for a flight that (i) is

 

 

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

 

 

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1that manufactured on special order, certified by the purchaser
2to be used primarily for photoprocessing, and including
3photoprocessing machinery and equipment purchased for lease.
4    (16) Until July 1, 2028, coal and aggregate exploration,
5mining, off-highway hauling, processing, maintenance, and
6reclamation equipment, including replacement parts and
7equipment, and including equipment purchased for lease, but
8excluding motor vehicles required to be registered under the
9Illinois Vehicle Code. The changes made to this Section by
10Public Act 97-767 apply on and after July 1, 2003, but no claim
11for credit or refund is allowed on or after August 16, 2013
12(the effective date of Public Act 98-456) for such taxes paid
13during the period beginning July 1, 2003 and ending on August
1416, 2013 (the effective date of Public Act 98-456).
15    (17) Until July 1, 2003, distillation machinery and
16equipment, sold as a unit or kit, assembled or installed by the
17retailer, certified by the user to be used only for the
18production of ethyl alcohol that will be used for consumption
19as motor fuel or as a component of motor fuel for the personal
20use of the user, and not subject to sale or resale.
21    (18) Manufacturing and assembling machinery and equipment
22used primarily in the process of manufacturing or assembling
23tangible personal property for wholesale or retail sale or
24lease, whether that sale or lease is made directly by the
25manufacturer or by some other person, whether the materials
26used in the process are owned by the manufacturer or some other

 

 

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1person, or whether that sale or lease is made apart from or as
2an incident to the seller's engaging in the service occupation
3of producing machines, tools, dies, jigs, patterns, gauges, or
4other similar items of no commercial value on special order
5for a particular purchaser. The exemption provided by this
6paragraph (18) includes production related tangible personal
7property, as defined in Section 3-50, purchased on or after
8July 1, 2019. The exemption provided by this paragraph (18)
9does not include machinery and equipment used in (i) the
10generation of electricity for wholesale or retail sale; (ii)
11the generation or treatment of natural or artificial gas for
12wholesale or retail sale that is delivered to customers
13through pipes, pipelines, or mains; or (iii) the treatment of
14water for wholesale or retail sale that is delivered to
15customers through pipes, pipelines, or mains. The provisions
16of Public Act 98-583 are declaratory of existing law as to the
17meaning and scope of this exemption. Beginning on July 1,
182017, the exemption provided by this paragraph (18) includes,
19but is not limited to, graphic arts machinery and equipment,
20as defined in paragraph (6) of this Section.
21    (19) Personal property delivered to a purchaser or
22purchaser's donee inside Illinois when the purchase order for
23that personal property was received by a florist located
24outside Illinois who has a florist located inside Illinois
25deliver the personal property.
26    (20) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (21) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (21) is exempt from the
8provisions of Section 3-90, and the exemption provided for
9under this item (21) applies for all periods beginning May 30,
101995, but no claim for credit or refund is allowed on or after
11January 1, 2008 for such taxes paid during the period
12beginning May 30, 2000 and ending on January 1, 2008.
13    (22) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. If the equipment is leased
22in a manner that does not qualify for this exemption or is used
23in any other non-exempt manner, the lessor shall be liable for
24the tax imposed under this Act or the Service Use Tax Act, as
25the case may be, based on the fair market value of the property
26at the time the non-qualifying use occurs. No lessor shall

 

 

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

 

 

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

 

 

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1disaster.
2    (26) Beginning July 1, 1999, game or game birds purchased
3at a "game breeding and hunting preserve area" as that term is
4used in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 3-90.
6    (27) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the
10Department to be organized and operated exclusively for
11educational purposes. For purposes of this exemption, "a
12corporation, limited liability company, society, association,
13foundation, or institution organized and operated exclusively
14for educational purposes" means all tax-supported public
15schools, private schools that offer systematic instruction in
16useful branches of learning by methods common to public
17schools and that compare favorably in their scope and
18intensity with the course of study presented in tax-supported
19schools, and vocational or technical schools or institutes
20organized and operated exclusively to provide a course of
21study of not less than 6 weeks duration and designed to prepare
22individuals to follow a trade or to pursue a manual,
23technical, mechanical, industrial, business, or commercial
24occupation.
25    (28) Beginning January 1, 2000, personal property,
26including food, purchased through fundraising events for the

 

 

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1benefit of a public or private elementary or secondary school,
2a group of those schools, or one or more school districts if
3the events are sponsored by an entity recognized by the school
4district that consists primarily of volunteers and includes
5parents and teachers of the school children. This paragraph
6does not apply to fundraising events (i) for the benefit of
7private home instruction or (ii) for which the fundraising
8entity purchases the personal property sold at the events from
9another individual or entity that sold the property for the
10purpose of resale by the fundraising entity and that profits
11from the sale to the fundraising entity. This paragraph is
12exempt from the provisions of Section 3-90.
13    (29) Beginning January 1, 2000 and through December 31,
142001, new or used automatic vending machines that prepare and
15serve hot food and beverages, including coffee, soup, and
16other items, and replacement parts for these machines.
17Beginning January 1, 2002 and through June 30, 2003, machines
18and parts for machines used in commercial, coin-operated
19amusement and vending business if a use or occupation tax is
20paid on the gross receipts derived from the use of the
21commercial, coin-operated amusement and vending machines. This
22paragraph is exempt from the provisions of Section 3-90.
23    (30) Beginning January 1, 2001 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 nonprescription 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    (31) Beginning on August 2, 2001 (the effective date of
11Public Act 92-227), computers and communications equipment
12utilized for any hospital purpose and equipment used in the
13diagnosis, analysis, or treatment of hospital patients
14purchased by a lessor who leases the equipment, under a lease
15of one year or longer executed or in effect at the time the
16lessor would otherwise be subject to the tax imposed by this
17Act, to a hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. If the equipment is leased
20in a manner that does not qualify for this exemption or is used
21in any other nonexempt manner, the lessor shall be liable for
22the tax imposed under this Act or the Service Use Tax Act, as
23the case may be, based on the fair market value of the property
24at the time the nonqualifying use occurs. No lessor shall
25collect or attempt to collect an amount (however designated)
26that purports to reimburse that lessor for the tax imposed by

 

 

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

 

 

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1have a legal right to claim a refund of that amount from the
2lessor. If, however, that amount is not refunded to the lessee
3for any reason, the lessor is liable to pay that amount to the
4Department. This paragraph is exempt from the provisions of
5Section 3-90.
6    (33) On and after July 1, 2003 and through June 30, 2004,
7the use in this State of motor vehicles of the second division
8with a gross vehicle weight in excess of 8,000 pounds and that
9are subject to the commercial distribution fee imposed under
10Section 3-815.1 of the Illinois Vehicle Code. Beginning on
11July 1, 2004 and through June 30, 2005, the use in this State
12of motor vehicles of the second division: (i) with a gross
13vehicle weight rating in excess of 8,000 pounds; (ii) that are
14subject to the commercial distribution fee imposed under
15Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
16are primarily used for commercial purposes. Through June 30,
172005, this exemption applies to repair and replacement parts
18added after the initial purchase of such a motor vehicle if
19that motor vehicle is used in a manner that would qualify for
20the rolling stock exemption otherwise provided for in this
21Act. For purposes of this paragraph, the term "used for
22commercial purposes" means the transportation of persons or
23property in furtherance of any commercial or industrial
24enterprise, whether for-hire or not.
25    (34) Beginning January 1, 2008, tangible personal property
26used in the construction or maintenance of a community water

 

 

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1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued
4under Title IV of the Environmental Protection Act. This
5paragraph is exempt from the provisions of Section 3-90.
6    (35) Beginning January 1, 2010 and continuing through
7December 31, 2024, materials, parts, equipment, components,
8and furnishings incorporated into or upon an aircraft as part
9of the modification, refurbishment, completion, replacement,
10repair, or maintenance of the aircraft. This exemption
11includes consumable supplies used in the modification,
12refurbishment, completion, replacement, repair, and
13maintenance of aircraft, but excludes any materials, parts,
14equipment, components, and consumable supplies used in the
15modification, replacement, repair, and maintenance of aircraft
16engines or power plants, whether such engines or power plants
17are installed or uninstalled upon any such aircraft.
18"Consumable supplies" include, but are not limited to,
19adhesive, tape, sandpaper, general purpose lubricants,
20cleaning solution, latex gloves, and protective films. This
21exemption applies only to the use of qualifying tangible
22personal property by: (A) persons who modify, refurbish,
23complete, repair, replace, or maintain aircraft and who (i)
24hold an Air Agency Certificate and are empowered to operate an
25approved repair station by the Federal Aviation
26Administration, (ii) have a Class IV Rating, and (iii) conduct

 

 

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1operations in accordance with Part 145 of the Federal Aviation
2Regulations; and (B) persons who engage in the modification,
3replacement, repair, and maintenance of aircraft engines or
4power plants without regard to whether or not those persons
5meet the qualifications of item (A). The exemption does not
6include aircraft operated by a commercial air carrier
7providing scheduled passenger air service pursuant to
8authority issued under Part 121 or Part 129 of the Federal
9Aviation Regulations. The changes made to this paragraph (35)
10by Public Act 98-534 are declarative of existing law. It is the
11intent of the General Assembly that the exemption under this
12paragraph (35) applies continuously from January 1, 2010
13through December 31, 2024; however, no claim for credit or
14refund is allowed for taxes paid as a result of the
15disallowance of this exemption on or after January 1, 2015 and
16prior to February 5, 2020 (the effective date of Public Act
17101-629) this amendatory Act of the 101st General Assembly.
18    (36) Tangible personal property purchased by a
19public-facilities corporation, as described in Section
2011-65-10 of the Illinois Municipal Code, for purposes of
21constructing or furnishing a municipal convention hall, but
22only if the legal title to the municipal convention hall is
23transferred to the municipality without any further
24consideration by or on behalf of the municipality at the time
25of the completion of the municipal convention hall or upon the
26retirement or redemption of any bonds or other debt

 

 

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1instruments issued by the public-facilities corporation in
2connection with the development of the municipal convention
3hall. This exemption includes existing public-facilities
4corporations as provided in Section 11-65-25 of the Illinois
5Municipal Code. This paragraph is exempt from the provisions
6of Section 3-90.
7    (37) Beginning January 1, 2017 and through December 31,
82026, menstrual pads, tampons, and menstrual cups.
9    (38) Merchandise that is subject to the Rental Purchase
10Agreement Occupation and Use Tax. The purchaser must certify
11that the item is purchased to be rented subject to a rental
12purchase agreement, as defined in the Rental Purchase
13Agreement Act, and provide proof of registration under the
14Rental Purchase Agreement Occupation and Use Tax Act. This
15paragraph is exempt from the provisions of Section 3-90.
16    (39) Tangible personal property purchased by a purchaser
17who is exempt from the tax imposed by this Act by operation of
18federal law. This paragraph is exempt from the provisions of
19Section 3-90.
20    (40) Qualified tangible personal property used in the
21construction or operation of a data center that has been
22granted a certificate of exemption by the Department of
23Commerce and Economic Opportunity, whether that tangible
24personal property is purchased by the owner, operator, or
25tenant of the data center or by a contractor or subcontractor
26of the owner, operator, or tenant. Data centers that would

 

 

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1have qualified for a certificate of exemption prior to January
21, 2020 had Public Act 101-31 been in effect may apply for and
3obtain an exemption for subsequent purchases of computer
4equipment or enabling software purchased or leased to upgrade,
5supplement, or replace computer equipment or enabling software
6purchased or leased in the original investment that would have
7qualified.
8    The Department of Commerce and Economic Opportunity shall
9grant a certificate of exemption under this item (40) to
10qualified data centers as defined by Section 605-1025 of the
11Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    For the purposes of this item (40):
14        "Data center" means a building or a series of
15    buildings rehabilitated or constructed to house working
16    servers in one physical location or multiple sites within
17    the State of Illinois.
18        "Qualified tangible personal property" means:
19    electrical systems and equipment; climate control and
20    chilling equipment and systems; mechanical systems and
21    equipment; monitoring and secure systems; emergency
22    generators; hardware; computers; servers; data storage
23    devices; network connectivity equipment; racks; cabinets;
24    telecommunications cabling infrastructure; raised floor
25    systems; peripheral components or systems; software;
26    mechanical, electrical, or plumbing systems; battery

 

 

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1    systems; cooling systems and towers; temperature control
2    systems; other cabling; and other data center
3    infrastructure equipment and systems necessary to operate
4    qualified tangible personal property, including fixtures;
5    and component parts of any of the foregoing, including
6    installation, maintenance, repair, refurbishment, and
7    replacement of qualified tangible personal property to
8    generate, transform, transmit, distribute, or manage
9    electricity necessary to operate qualified tangible
10    personal property; and all other tangible personal
11    property that is essential to the operations of a computer
12    data center. The term "qualified tangible personal
13    property" also includes building materials physically
14    incorporated in to the qualifying data center. To document
15    the exemption allowed under this Section, the retailer
16    must obtain from the purchaser a copy of the certificate
17    of eligibility issued by the Department of Commerce and
18    Economic Opportunity.
19    This item (40) is exempt from the provisions of Section
203-90.
21    (41) Beginning July 1, 2022, breast pumps, breast pump
22collection and storage supplies, and breast pump kits. This
23item (41) is exempt from the provisions of Section 3-90. As
24used in this item (41):
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    (42) (41) Tangible personal property sold by or on behalf
12of the State Treasurer pursuant to the Revised Uniform
13Unclaimed Property Act. This item (42) (41) is exempt from the
14provisions of Section 3-90.
15(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
16101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
176-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
18102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
19eff. 5-27-22; revised 8-1-22.)
 
20    Section 10. The Service Use Tax Act is amended by changing
21Section 3-5 as follows:
 
22    (35 ILCS 110/3-5)
23    Sec. 3-5. Exemptions. Use of the following tangible
24personal property is exempt from the tax imposed by this Act:

 

 

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

 

 

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1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4    (5) Until July 1, 2003 and beginning again on September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new
7and used, and including that manufactured on special order or
8purchased for lease, certified by the purchaser to be used
9primarily for graphic arts production. Equipment includes
10chemicals or chemicals acting as catalysts but only if the
11chemicals or chemicals acting as catalysts effect a direct and
12immediate change upon a graphic arts product. Beginning on
13July 1, 2017, graphic arts machinery and equipment is included
14in the manufacturing and assembling machinery and equipment
15exemption under Section 2 of this Act.
16    (6) Personal property purchased from a teacher-sponsored
17student organization affiliated with an elementary or
18secondary school located in Illinois.
19    (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

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

 

 

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1provisions of Section 3-75.
2    (8) Until June 30, 2013, fuel and petroleum products sold
3to or used by an air common carrier, certified by the carrier
4to be used for consumption, shipment, or storage in the
5conduct of its business as an air common carrier, for a flight
6destined for or returning from a location or locations outside
7the United States without regard to previous or subsequent
8domestic stopovers.
9    Beginning July 1, 2013, fuel and petroleum products sold
10to or used by an air carrier, certified by the carrier to be
11used for consumption, shipment, or storage in the conduct of
12its business as an air common carrier, for a flight that (i) is
13engaged in foreign trade or is engaged in trade between the
14United States and any of its possessions and (ii) transports
15at least one individual or package for hire from the city of
16origination to the city of final destination on the same
17aircraft, without regard to a change in the flight number of
18that aircraft.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages acquired as an incident to the purchase of a
22service from a serviceman, to the extent that the proceeds of
23the service charge are in fact turned over as tips or as a
24substitute for tips to the employees who participate directly
25in preparing, serving, hosting or cleaning up the food or
26beverage function with respect to which the service charge is

 

 

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

 

 

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1during the period beginning July 1, 2003 and ending on August
216, 2013 (the effective date of Public Act 98-456).
3    (13) Semen used for artificial insemination of livestock
4for direct agricultural production.
5    (14) Horses, or interests in horses, registered with and
6meeting the requirements of any of the Arabian Horse Club
7Registry of America, Appaloosa Horse Club, American Quarter
8Horse Association, United States Trotting Association, or
9Jockey Club, as appropriate, used for purposes of breeding or
10racing for prizes. This item (14) is exempt from the
11provisions of Section 3-75, and the exemption provided for
12under this item (14) applies for all periods beginning May 30,
131995, but no claim for credit or refund is allowed on or after
14January 1, 2008 (the effective date of Public Act 95-88) for
15such taxes paid during the period beginning May 30, 2000 and
16ending on January 1, 2008 (the effective date of Public Act
1795-88).
18    (15) Computers and communications equipment utilized for
19any hospital purpose and equipment used in the diagnosis,
20analysis, or treatment of hospital patients purchased by a
21lessor who leases the equipment, under a lease of one year or
22longer executed or in effect at the time the lessor would
23otherwise be subject to the tax imposed by this Act, to a
24hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of
26the Retailers' Occupation Tax Act. If the equipment is leased

 

 

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

 

 

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1to collect an amount (however designated) that purports to
2reimburse that lessor for the tax imposed by this Act or the
3Use Tax Act, as the case may be, if the tax has not been paid
4by the lessor. If a lessor improperly collects any such amount
5from the lessee, the lessee shall have a legal right to claim a
6refund of that amount from the lessor. If, however, that
7amount is not refunded to the lessee for any reason, the lessor
8is liable to pay that amount to the Department.
9    (17) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is donated
12for disaster relief to be used in a State or federally declared
13disaster area in Illinois or bordering Illinois by a
14manufacturer or retailer that is registered in this State to a
15corporation, society, association, foundation, or institution
16that has been issued a sales tax exemption identification
17number by the Department that assists victims of the disaster
18who reside within the declared disaster area.
19    (18) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is used in
22the performance of infrastructure repairs in this State,
23including but not limited to municipal roads and streets,
24access roads, bridges, sidewalks, waste disposal systems,
25water and sewer line extensions, water distribution and
26purification facilities, storm water drainage and retention

 

 

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1facilities, and sewage treatment facilities, resulting from a
2State or federally declared disaster in Illinois or bordering
3Illinois when such repairs are initiated on facilities located
4in the declared disaster area within 6 months after the
5disaster.
6    (19) Beginning July 1, 1999, game or game birds purchased
7at a "game breeding and hunting preserve area" as that term is
8used in the Wildlife Code. This paragraph is exempt from the
9provisions of Section 3-75.
10    (20) A motor vehicle, as that term is defined in Section
111-146 of the Illinois Vehicle Code, that is donated to a
12corporation, limited liability company, society, association,
13foundation, or institution that is determined by the
14Department to be organized and operated exclusively for
15educational purposes. For purposes of this exemption, "a
16corporation, limited liability company, society, association,
17foundation, or institution organized and operated exclusively
18for educational purposes" means all tax-supported public
19schools, private schools that offer systematic instruction in
20useful branches of learning by methods common to public
21schools and that compare favorably in their scope and
22intensity with the course of study presented in tax-supported
23schools, and vocational or technical schools or institutes
24organized and operated exclusively to provide a course of
25study of not less than 6 weeks duration and designed to prepare
26individuals to follow a trade or to pursue a manual,

 

 

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1technical, mechanical, industrial, business, or commercial
2occupation.
3    (21) Beginning January 1, 2000, personal property,
4including food, purchased through fundraising events for the
5benefit of a public or private elementary or secondary school,
6a group of those schools, or one or more school districts if
7the events are sponsored by an entity recognized by the school
8district that consists primarily of volunteers and includes
9parents and teachers of the school children. This paragraph
10does not apply to fundraising events (i) for the benefit of
11private home instruction or (ii) for which the fundraising
12entity purchases the personal property sold at the events from
13another individual or entity that sold the property for the
14purpose of resale by the fundraising entity and that profits
15from the sale to the fundraising entity. This paragraph is
16exempt from the provisions of Section 3-75.
17    (22) Beginning January 1, 2000 and through December 31,
182001, new or used automatic vending machines that prepare and
19serve hot food and beverages, including coffee, soup, and
20other items, and replacement parts for these machines.
21Beginning January 1, 2002 and through June 30, 2003, machines
22and parts for machines used in commercial, coin-operated
23amusement and vending business if a use or occupation tax is
24paid on the gross receipts derived from the use of the
25commercial, coin-operated amusement and vending machines. This
26paragraph is exempt from the provisions of Section 3-75.

 

 

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1    (23) Beginning August 23, 2001 and through June 30, 2016,
2food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages,
4soft drinks, and food that has been prepared for immediate
5consumption) and prescription and nonprescription medicines,
6drugs, medical appliances, and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use, when purchased for use by a person receiving medical
9assistance under Article V of the Illinois Public Aid Code who
10resides in a licensed long-term care facility, as defined in
11the Nursing Home Care Act, or in a licensed facility as defined
12in the ID/DD Community Care Act, the MC/DD Act, or the
13Specialized Mental Health Rehabilitation Act of 2013.
14    (24) Beginning on August 2, 2001 (the effective date of
15Public Act 92-227), computers and communications equipment
16utilized for any hospital purpose and equipment used in the
17diagnosis, analysis, or treatment of hospital patients
18purchased by a lessor who leases the equipment, under a lease
19of one year or longer executed or in effect at the time the
20lessor would otherwise be subject to the tax imposed by this
21Act, to a hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23the Retailers' Occupation Tax Act. If the equipment is leased
24in a manner that does not qualify for this exemption or is used
25in any other nonexempt manner, the lessor shall be liable for
26the tax imposed under this Act or the Use Tax Act, as the case

 

 

10300HB2518ham001- 35 -LRB103 28353 HLH 57975 a

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

 

 

10300HB2518ham001- 36 -LRB103 28353 HLH 57975 a

1reimburse that lessor for the tax imposed by this Act or the
2Use Tax Act, as the case may be, if the tax has not been paid
3by the lessor. If a lessor improperly collects any such amount
4from the lessee, the lessee shall have a legal right to claim a
5refund of that amount from the lessor. If, however, that
6amount is not refunded to the lessee for any reason, the lessor
7is liable to pay that amount to the Department. This paragraph
8is exempt from the provisions of Section 3-75.
9    (26) Beginning January 1, 2008, tangible personal property
10used in the construction or maintenance of a community water
11supply, as defined under Section 3.145 of the Environmental
12Protection Act, that is operated by a not-for-profit
13corporation that holds a valid water supply permit issued
14under Title IV of the Environmental Protection Act. This
15paragraph is exempt from the provisions of Section 3-75.
16    (27) 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

 

 

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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 use of qualifying tangible
6personal property transferred incident to the modification,
7refurbishment, completion, replacement, repair, or maintenance
8of aircraft by: (A) persons who (i) hold an Air Agency
9Certificate and are empowered to operate an approved repair
10station by the Federal Aviation Administration, (ii) have a
11Class IV Rating, and (iii) conduct operations in accordance
12with Part 145 of the Federal Aviation Regulations; and (B)
13persons who engage in the modification, replacement, repair,
14and maintenance of aircraft engines or power plants without
15regard to whether or not those persons meet the qualifications
16of item (A). The exemption does not include aircraft operated
17by a commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part
19129 of the Federal Aviation Regulations. The changes made to
20this paragraph (27) by Public Act 98-534 are declarative of
21existing law. It is the intent of the General Assembly that the
22exemption under this paragraph (27) applies continuously from
23January 1, 2010 through December 31, 2024; however, no claim
24for credit or refund is allowed for taxes paid as a result of
25the disallowance of this exemption on or after January 1, 2015
26and prior to February 5, 2020 (the effective date of Public Act

 

 

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1101-629) this amendatory Act of the 101st General Assembly.
2    (28) Tangible personal property purchased by a
3public-facilities corporation, as described in Section
411-65-10 of the Illinois Municipal Code, for purposes of
5constructing or furnishing a municipal convention hall, but
6only if the legal title to the municipal convention hall is
7transferred to the municipality without any further
8consideration by or on behalf of the municipality at the time
9of the completion of the municipal convention hall or upon the
10retirement or redemption of any bonds or other debt
11instruments issued by the public-facilities corporation in
12connection with the development of the municipal convention
13hall. This exemption includes existing public-facilities
14corporations as provided in Section 11-65-25 of the Illinois
15Municipal Code. This paragraph is exempt from the provisions
16of Section 3-75.
17    (29) Beginning January 1, 2017 and through December 31,
182026, menstrual pads, tampons, and menstrual cups.
19    (30) Tangible personal property transferred to a purchaser
20who is exempt from the tax imposed by this Act by operation of
21federal law. This paragraph is exempt from the provisions of
22Section 3-75.
23    (31) Qualified tangible personal property used in the
24construction or operation of a data center that has been
25granted a certificate of exemption by the Department of
26Commerce and Economic Opportunity, whether that tangible

 

 

10300HB2518ham001- 39 -LRB103 28353 HLH 57975 a

1personal property is purchased by the owner, operator, or
2tenant of the data center or by a contractor or subcontractor
3of the owner, operator, or tenant. Data centers that would
4have qualified for a certificate of exemption prior to January
51, 2020 had Public Act 101-31 this amendatory Act of the 101st
6General Assembly been in effect, may apply for and obtain an
7exemption for subsequent purchases of computer equipment or
8enabling software purchased or leased to upgrade, supplement,
9or replace computer equipment or enabling software purchased
10or leased in the original investment that would have
11qualified.
12    The Department of Commerce and Economic Opportunity shall
13grant a certificate of exemption under this item (31) to
14qualified data centers as defined by Section 605-1025 of the
15Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17    For the purposes of this item (31):
18        "Data center" means a building or a series of
19    buildings rehabilitated or constructed to house working
20    servers in one physical location or multiple sites within
21    the State of Illinois.
22        "Qualified tangible personal property" means:
23    electrical systems and equipment; climate control and
24    chilling equipment and systems; mechanical systems and
25    equipment; monitoring and secure systems; emergency
26    generators; hardware; computers; servers; data storage

 

 

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1    devices; network connectivity equipment; racks; cabinets;
2    telecommunications cabling infrastructure; raised floor
3    systems; peripheral components or systems; software;
4    mechanical, electrical, or plumbing systems; battery
5    systems; cooling systems and towers; temperature control
6    systems; other cabling; and other data center
7    infrastructure equipment and systems necessary to operate
8    qualified tangible personal property, including fixtures;
9    and component parts of any of the foregoing, including
10    installation, maintenance, repair, refurbishment, and
11    replacement of qualified tangible personal property to
12    generate, transform, transmit, distribute, or manage
13    electricity necessary to operate qualified tangible
14    personal property; and all other tangible personal
15    property that is essential to the operations of a computer
16    data center. The term "qualified tangible personal
17    property" also includes building materials physically
18    incorporated in to the qualifying data center. To document
19    the exemption allowed under this Section, the retailer
20    must obtain from the purchaser a copy of the certificate
21    of eligibility issued by the Department of Commerce and
22    Economic Opportunity.
23    This item (31) is exempt from the provisions of Section
243-75.
25    (32) Beginning July 1, 2022, breast pumps, breast pump
26collection and storage supplies, and breast pump kits. This

 

 

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1item (32) is exempt from the provisions of Section 3-75. As
2used in this item (32):
3        "Breast pump" means an electrically controlled or
4    manually controlled pump device designed or marketed to be
5    used to express milk from a human breast during lactation,
6    including the pump device and any battery, AC adapter, or
7    other power supply unit that is used to power the pump
8    device and is packaged and sold with the pump device at the
9    time of sale.
10        "Breast pump collection and storage supplies" means
11    items of tangible personal property designed or marketed
12    to be used in conjunction with a breast pump to collect
13    milk expressed from a human breast and to store collected
14    milk until it is ready for consumption.
15        "Breast pump collection and storage supplies"
16    includes, but is not limited to: breast shields and breast
17    shield connectors; breast pump tubes and tubing adapters;
18    breast pump valves and membranes; backflow protectors and
19    backflow protector adaptors; bottles and bottle caps
20    specific to the operation of the breast pump; and breast
21    milk storage bags.
22        "Breast pump collection and storage supplies" does not
23    include: (1) bottles and bottle caps not specific to the
24    operation of the breast pump; (2) breast pump travel bags
25    and other similar carrying accessories, including ice
26    packs, labels, and other similar products; (3) breast pump

 

 

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1    cleaning supplies; (4) nursing bras, bra pads, breast
2    shells, and other similar products; and (5) creams,
3    ointments, and other similar products that relieve
4    breastfeeding-related symptoms or conditions of the
5    breasts or nipples, unless sold as part of a breast pump
6    kit that is pre-packaged by the breast pump manufacturer
7    or distributor.
8        "Breast pump kit" means a kit that: (1) contains no
9    more than a breast pump, breast pump collection and
10    storage supplies, a rechargeable battery for operating the
11    breast pump, a breastmilk cooler, bottle stands, ice
12    packs, and a breast pump carrying case; and (2) is
13    pre-packaged as a breast pump kit by the breast pump
14    manufacturer or distributor.
15    (33) (32) Tangible personal property sold by or on behalf
16of the State Treasurer pursuant to the Revised Uniform
17Unclaimed Property Act. This item (33) (32) is exempt from the
18provisions of Section 3-75.
19(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
20101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2170, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2275-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
23    Section 15. The Service Occupation Tax Act is amended by
24changing Section 3-5 as follows:
 

 

 

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

 

 

10300HB2518ham001- 44 -LRB103 28353 HLH 57975 a

1purchases unless it has an active identification number issued
2by the Department.
3    (4) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7    (5) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new
10and used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product. Beginning on
16July 1, 2017, graphic arts machinery and equipment is included
17in the manufacturing and assembling machinery and equipment
18exemption under Section 2 of this Act.
19    (6) Personal property sold by a teacher-sponsored student
20organization affiliated with an elementary or secondary school
21located in Illinois.
22    (7) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or
25State or federal agricultural programs, including individual
26replacement parts for the machinery and equipment, including

 

 

10300HB2518ham001- 45 -LRB103 28353 HLH 57975 a

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

 

 

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

 

 

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

 

 

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1(the effective date of Public Act 98-456) for such taxes paid
2during the period beginning July 1, 2003 and ending on August
316, 2013 (the effective date of Public Act 98-456).
4    (13) Beginning January 1, 1992 and through June 30, 2016,
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages,
7soft drinks and food that has been prepared for immediate
8consumption) and prescription and non-prescription medicines,
9drugs, medical appliances, and insulin, urine testing
10materials, syringes, and needles used by diabetics, for human
11use, when purchased for use by a person receiving medical
12assistance under Article V of the Illinois Public Aid Code who
13resides in a licensed long-term care facility, as defined in
14the Nursing Home Care Act, or in a licensed facility as defined
15in the ID/DD Community Care Act, the MC/DD Act, or the
16Specialized Mental Health Rehabilitation Act of 2013.
17    (14) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (15) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (15) is exempt from the
25provisions of Section 3-55, and the exemption provided for
26under this item (15) applies for all periods beginning May 30,

 

 

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11995, but no claim for credit or refund is allowed on or after
2January 1, 2008 (the effective date of Public Act 95-88) for
3such taxes paid during the period beginning May 30, 2000 and
4ending on January 1, 2008 (the effective date of Public Act
595-88).
6    (16) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients sold to a lessor
9who leases the equipment, under a lease of one year or longer
10executed 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.
14    (17) Personal property sold to a lessor who leases the
15property, under a lease of one year or longer executed or in
16effect at the time of the purchase, to a governmental body that
17has been issued an active tax exemption identification number
18by the Department under Section 1g of the Retailers'
19Occupation Tax Act.
20    (18) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is donated
23for disaster relief to be used in a State or federally declared
24disaster area in Illinois or bordering Illinois by a
25manufacturer or retailer that is registered in this State to a
26corporation, society, association, foundation, or institution

 

 

10300HB2518ham001- 50 -LRB103 28353 HLH 57975 a

1that has been issued a sales tax exemption identification
2number by the Department that assists victims of the disaster
3who reside within the declared disaster area.
4    (19) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is used in
7the performance of infrastructure repairs in this State,
8including but not limited to municipal roads and streets,
9access roads, bridges, sidewalks, waste disposal systems,
10water and sewer line extensions, water distribution and
11purification facilities, storm water drainage and retention
12facilities, and sewage treatment facilities, resulting from a
13State or federally declared disaster in Illinois or bordering
14Illinois when such repairs are initiated on facilities located
15in the declared disaster area within 6 months after the
16disaster.
17    (20) Beginning July 1, 1999, game or game birds sold at a
18"game breeding and hunting preserve area" as that term is used
19in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 3-55.
21    (21) A motor vehicle, as that term is defined in Section
221-146 of the Illinois Vehicle Code, that is donated to a
23corporation, limited liability company, society, association,
24foundation, or institution that is determined by the
25Department to be organized and operated exclusively for
26educational purposes. For purposes of this exemption, "a

 

 

10300HB2518ham001- 51 -LRB103 28353 HLH 57975 a

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

 

 

10300HB2518ham001- 52 -LRB103 28353 HLH 57975 a

1exempt from the provisions of Section 3-55.
2    (23) Beginning January 1, 2000 and through December 31,
32001, new or used automatic vending machines that prepare and
4serve hot food and beverages, including coffee, soup, and
5other items, and replacement parts for these machines.
6Beginning January 1, 2002 and through June 30, 2003, machines
7and parts for machines used in commercial, coin-operated
8amusement and vending business if a use or occupation tax is
9paid on the gross receipts derived from the use of the
10commercial, coin-operated amusement and vending machines. This
11paragraph is exempt from the provisions of Section 3-55.
12    (24) Beginning on August 2, 2001 (the effective date of
13Public Act 92-227), computers and communications equipment
14utilized for any hospital purpose and equipment used in the
15diagnosis, analysis, or treatment of hospital patients sold to
16a lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time of the purchase, to a
18hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of
20the Retailers' Occupation Tax Act. This paragraph is exempt
21from the provisions of Section 3-55.
22    (25) Beginning on August 2, 2001 (the effective date of
23Public Act 92-227), personal property sold to a lessor who
24leases the property, under a lease of one year or longer
25executed or in effect at the time of the purchase, to a
26governmental body that has been issued an active tax exemption

 

 

10300HB2518ham001- 53 -LRB103 28353 HLH 57975 a

1identification number by the Department under Section 1g of
2the Retailers' Occupation Tax Act. This paragraph is exempt
3from the provisions of Section 3-55.
4    (26) Beginning on January 1, 2002 and through June 30,
52016, tangible personal property purchased from an Illinois
6retailer by a taxpayer engaged in centralized purchasing
7activities in Illinois who will, upon receipt of the property
8in Illinois, temporarily store the property in Illinois (i)
9for the purpose of subsequently transporting it outside this
10State for use or consumption thereafter solely outside this
11State or (ii) for the purpose of being processed, fabricated,
12or manufactured into, attached to, or incorporated into other
13tangible personal property to be transported outside this
14State and thereafter used or consumed solely outside this
15State. The Director of Revenue shall, pursuant to rules
16adopted in accordance with the Illinois Administrative
17Procedure Act, issue a permit to any taxpayer in good standing
18with the Department who is eligible for the exemption under
19this paragraph (26). The permit issued under this paragraph
20(26) shall authorize the holder, to the extent and in the
21manner specified in the rules adopted under this Act, to
22purchase tangible personal property from a retailer exempt
23from the taxes imposed by this Act. Taxpayers shall maintain
24all necessary books and records to substantiate the use and
25consumption of all such tangible personal property outside of
26the State of Illinois.

 

 

10300HB2518ham001- 54 -LRB103 28353 HLH 57975 a

1    (27) Beginning January 1, 2008, tangible personal property
2used in the construction or maintenance of a community water
3supply, as defined under Section 3.145 of the Environmental
4Protection Act, that is operated by a not-for-profit
5corporation that holds a valid water supply permit issued
6under Title IV of the Environmental Protection Act. This
7paragraph is exempt from the provisions of Section 3-55.
8    (28) Tangible personal property sold to a
9public-facilities corporation, as described in Section
1011-65-10 of the Illinois Municipal Code, for purposes of
11constructing or furnishing a municipal convention hall, but
12only if the legal title to the municipal convention hall is
13transferred to the municipality without any further
14consideration by or on behalf of the municipality at the time
15of the completion of the municipal convention hall or upon the
16retirement or redemption of any bonds or other debt
17instruments issued by the public-facilities corporation in
18connection with the development of the municipal convention
19hall. This exemption includes existing public-facilities
20corporations as provided in Section 11-65-25 of the Illinois
21Municipal Code. This paragraph is exempt from the provisions
22of Section 3-55.
23    (29) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

10300HB2518ham001- 55 -LRB103 28353 HLH 57975 a

1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the transfer of qualifying tangible
13personal property incident to the modification, refurbishment,
14completion, replacement, repair, or maintenance of an aircraft
15by: (A) persons who (i) hold an Air Agency Certificate and are
16empowered to operate an approved repair station by the Federal
17Aviation Administration, (ii) have a Class IV Rating, and
18(iii) conduct operations in accordance with Part 145 of the
19Federal Aviation Regulations; and (B) persons who engage in
20the modification, replacement, repair, and maintenance of
21aircraft engines or power plants without regard to whether or
22not those persons meet the qualifications of item (A). The
23exemption does not include aircraft operated by a commercial
24air carrier providing scheduled passenger air service pursuant
25to authority issued under Part 121 or Part 129 of the Federal
26Aviation Regulations. The changes made to this paragraph (29)

 

 

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1by Public Act 98-534 are declarative of existing law. It is the
2intent of the General Assembly that the exemption under this
3paragraph (29) applies continuously from January 1, 2010
4through December 31, 2024; however, no claim for credit or
5refund is allowed for taxes paid as a result of the
6disallowance of this exemption on or after January 1, 2015 and
7prior to February 5, 2020 (the effective date of Public Act
8101-629) this amendatory Act of the 101st General Assembly.
9    (30) Beginning January 1, 2017 and through December 31,
102026, menstrual pads, tampons, and menstrual cups.
11    (31) Tangible personal property transferred to a purchaser
12who is exempt from tax by operation of federal law. This
13paragraph is exempt from the provisions of Section 3-55.
14    (32) Qualified tangible personal property used in the
15construction or operation of a data center that has been
16granted a certificate of exemption by the Department of
17Commerce and Economic Opportunity, whether that tangible
18personal property is purchased by the owner, operator, or
19tenant of the data center or by a contractor or subcontractor
20of the owner, operator, or tenant. Data centers that would
21have qualified for a certificate of exemption prior to January
221, 2020 had Public Act 101-31 this amendatory Act of the 101st
23General Assembly been in effect, may apply for and obtain an
24exemption for subsequent purchases of computer equipment or
25enabling software purchased or leased to upgrade, supplement,
26or replace computer equipment or enabling software purchased

 

 

10300HB2518ham001- 57 -LRB103 28353 HLH 57975 a

1or leased in the original investment that would have
2qualified.
3    The Department of Commerce and Economic Opportunity shall
4grant a certificate of exemption under this item (32) to
5qualified data centers as defined by Section 605-1025 of the
6Department of Commerce and Economic Opportunity Law of the
7Civil Administrative Code of Illinois.
8    For the purposes of this item (32):
9        "Data center" means a building or a series of
10    buildings rehabilitated or constructed to house working
11    servers in one physical location or multiple sites within
12    the State of Illinois.
13        "Qualified tangible personal property" means:
14    electrical systems and equipment; climate control and
15    chilling equipment and systems; mechanical systems and
16    equipment; monitoring and secure systems; emergency
17    generators; hardware; computers; servers; data storage
18    devices; network connectivity equipment; racks; cabinets;
19    telecommunications cabling infrastructure; raised floor
20    systems; peripheral components or systems; software;
21    mechanical, electrical, or plumbing systems; battery
22    systems; cooling systems and towers; temperature control
23    systems; other cabling; and other data center
24    infrastructure equipment and systems necessary to operate
25    qualified tangible personal property, including fixtures;
26    and component parts of any of the foregoing, including

 

 

10300HB2518ham001- 58 -LRB103 28353 HLH 57975 a

1    installation, maintenance, repair, refurbishment, and
2    replacement of qualified tangible personal property to
3    generate, transform, transmit, distribute, or manage
4    electricity necessary to operate qualified tangible
5    personal property; and all other tangible personal
6    property that is essential to the operations of a computer
7    data center. The term "qualified tangible personal
8    property" also includes building materials physically
9    incorporated in to the qualifying data center. To document
10    the exemption allowed under this Section, the retailer
11    must obtain from the purchaser a copy of the certificate
12    of eligibility issued by the Department of Commerce and
13    Economic Opportunity.
14    This item (32) is exempt from the provisions of Section
153-55.
16    (33) Beginning July 1, 2022, breast pumps, breast pump
17collection and storage supplies, and breast pump kits. This
18item (33) is exempt from the provisions of Section 3-55. As
19used in this item (33):
20        "Breast pump" means an electrically controlled or
21    manually controlled pump device designed or marketed to be
22    used to express milk from a human breast during lactation,
23    including the pump device and any battery, AC adapter, or
24    other power supply unit that is used to power the pump
25    device and is packaged and sold with the pump device at the
26    time of sale.

 

 

10300HB2518ham001- 59 -LRB103 28353 HLH 57975 a

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

 

 

10300HB2518ham001- 60 -LRB103 28353 HLH 57975 a

1    storage supplies, a rechargeable battery for operating the
2    breast pump, a breastmilk cooler, bottle stands, ice
3    packs, and a breast pump carrying case; and (2) is
4    pre-packaged as a breast pump kit by the breast pump
5    manufacturer or distributor.
6    (34) (33) Tangible personal property sold by or on behalf
7of the State Treasurer pursuant to the Revised Uniform
8Unclaimed Property Act. This item (34) (33) is exempt from the
9provisions of Section 3-55.
10(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
11101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1270, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1375-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
14    Section 20. The Retailers' Occupation Tax Act is amended
15by changing Section 2-5 as follows:
 
16    (35 ILCS 120/2-5)
17    Sec. 2-5. Exemptions. Gross receipts from proceeds from
18the sale of the following tangible personal property are
19exempt from the tax imposed by this Act:
20        (1) Farm chemicals.
21        (2) Farm machinery and equipment, both new and used,
22    including that manufactured on special order, certified by
23    the purchaser to be used primarily for production
24    agriculture or State or federal agricultural programs,

 

 

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

 

 

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1    sensors, software, and related equipment used primarily in
2    the computer-assisted operation of production agriculture
3    facilities, equipment, and activities such as, but not
4    limited to, the collection, monitoring, and correlation of
5    animal and crop data for the purpose of formulating animal
6    diets and agricultural chemicals. This item (2) is exempt
7    from the provisions of Section 2-70.
8        (3) Until July 1, 2003, distillation machinery and
9    equipment, sold as a unit or kit, assembled or installed
10    by the retailer, certified by the user to be used only for
11    the production of ethyl alcohol that will be used for
12    consumption as motor fuel or as a component of motor fuel
13    for the personal use of the user, and not subject to sale
14    or resale.
15        (4) Until July 1, 2003 and beginning again September
16    1, 2004 through August 30, 2014, graphic arts machinery
17    and equipment, including repair and replacement parts,
18    both new and used, and including that manufactured on
19    special order or purchased for lease, certified by the
20    purchaser to be used primarily for graphic arts
21    production. Equipment includes chemicals or chemicals
22    acting as catalysts but only if the chemicals or chemicals
23    acting as catalysts effect a direct and immediate change
24    upon a graphic arts product. Beginning on July 1, 2017,
25    graphic arts machinery and equipment is included in the
26    manufacturing and assembling machinery and equipment

 

 

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1    exemption under paragraph (14).
2        (5) A motor vehicle that is used for automobile
3    renting, as defined in the Automobile Renting Occupation
4    and Use Tax Act. This paragraph is exempt from the
5    provisions of Section 2-70.
6        (6) Personal property sold by a teacher-sponsored
7    student organization affiliated with an elementary or
8    secondary school located in Illinois.
9        (7) Until July 1, 2003, proceeds of that portion of
10    the selling price of a passenger car the sale of which is
11    subject to the Replacement Vehicle Tax.
12        (8) Personal property sold to an Illinois county fair
13    association for use in conducting, operating, or promoting
14    the county fair.
15        (9) Personal property sold to a not-for-profit arts or
16    cultural organization that establishes, by proof required
17    by the Department by rule, that it has received an
18    exemption under Section 501(c)(3) of the Internal Revenue
19    Code and that is organized and operated primarily for the
20    presentation or support of arts or cultural programming,
21    activities, or services. These organizations include, but
22    are not limited to, music and dramatic arts organizations
23    such as symphony orchestras and theatrical groups, arts
24    and cultural service organizations, local arts councils,
25    visual arts organizations, and media arts organizations.
26    On and after July 1, 2001 (the effective date of Public Act

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    period beginning July 1, 2003 and ending on August 16,
2    2013 (the effective date of Public Act 98-456).
3        (22) Until June 30, 2013, fuel and petroleum products
4    sold to or used by an air carrier, certified by the carrier
5    to be used for consumption, shipment, or storage in the
6    conduct of its business as an air common carrier, for a
7    flight destined for or returning from a location or
8    locations outside the United States without regard to
9    previous or subsequent domestic stopovers.
10        Beginning July 1, 2013, fuel and petroleum products
11    sold to or used by an air carrier, certified by the carrier
12    to be used for consumption, shipment, or storage in the
13    conduct of its business as an air common carrier, for a
14    flight that (i) is engaged in foreign trade or is engaged
15    in trade between the United States and any of its
16    possessions and (ii) transports at least one individual or
17    package for hire from the city of origination to the city
18    of final destination on the same aircraft, without regard
19    to a change in the flight number of that aircraft.
20        (23) A transaction in which the purchase order is
21    received by a florist who is located outside Illinois, but
22    who has a florist located in Illinois deliver the property
23    to the purchaser or the purchaser's donee in Illinois.
24        (24) Fuel consumed or used in the operation of ships,
25    barges, or vessels that are used primarily in or for the
26    transportation of property or the conveyance of persons

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    paragraph (38). The permit issued under this paragraph
2    (38) shall authorize the holder, to the extent and in the
3    manner specified in the rules adopted under this Act, to
4    purchase tangible personal property from a retailer exempt
5    from the taxes imposed by this Act. Taxpayers shall
6    maintain all necessary books and records to substantiate
7    the use and consumption of all such tangible personal
8    property outside of the State of Illinois.
9        (39) Beginning January 1, 2008, tangible personal
10    property used in the construction or maintenance of a
11    community water supply, as defined under Section 3.145 of
12    the Environmental Protection Act, that is operated by a
13    not-for-profit corporation that holds a valid water supply
14    permit issued under Title IV of the Environmental
15    Protection Act. This paragraph is exempt from the
16    provisions of Section 2-70.
17        (40) Beginning January 1, 2010 and continuing through
18    December 31, 2024, materials, parts, equipment,
19    components, and furnishings incorporated into or upon an
20    aircraft as part of the modification, refurbishment,
21    completion, replacement, repair, or maintenance of the
22    aircraft. This exemption includes consumable supplies used
23    in the modification, refurbishment, completion,
24    replacement, repair, and maintenance of aircraft, but
25    excludes any materials, parts, equipment, components, and
26    consumable supplies used in the modification, replacement,

 

 

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1    repair, and maintenance of aircraft engines or power
2    plants, whether such engines or power plants are installed
3    or uninstalled upon any such aircraft. "Consumable
4    supplies" include, but are not limited to, adhesive, tape,
5    sandpaper, general purpose lubricants, cleaning solution,
6    latex gloves, and protective films. This exemption applies
7    only to the sale of qualifying tangible personal property
8    to: (A) persons who modify, refurbish, complete, replace,
9    or maintain an aircraft and who (i) hold an Air Agency
10    Certificate and are empowered to operate an approved
11    repair station by the Federal Aviation Administration,
12    (ii) have a Class IV Rating, and (iii) conduct operations
13    in accordance with Part 145 of the Federal Aviation
14    Regulations; and (B) persons who engage in the
15    modification, replacement, repair, and maintenance of
16    aircraft engines or power plants without regard to whether
17    or not those persons meet the qualifications of item (A).
18    The exemption does not include aircraft operated by a
19    commercial air carrier providing scheduled passenger air
20    service pursuant to authority issued under Part 121 or
21    Part 129 of the Federal Aviation Regulations. The changes
22    made to this paragraph (40) by Public Act 98-534 are
23    declarative of existing law. It is the intent of the
24    General Assembly that the exemption under this paragraph
25    (40) applies continuously from January 1, 2010 through
26    December 31, 2024; however, no claim for credit or refund

 

 

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1    is allowed for taxes paid as a result of the disallowance
2    of this exemption on or after January 1, 2015 and prior to
3    February 5, 2020 (the effective date of Public Act
4    101-629) this amendatory Act of the 101st General
5    Assembly.
6        (41) Tangible personal property sold to a
7    public-facilities corporation, as described in Section
8    11-65-10 of the Illinois Municipal Code, for purposes of
9    constructing or furnishing a municipal convention hall,
10    but only if the legal title to the municipal convention
11    hall is transferred to the municipality without any
12    further consideration by or on behalf of the municipality
13    at the time of the completion of the municipal convention
14    hall or upon the retirement or redemption of any bonds or
15    other debt instruments issued by the public-facilities
16    corporation in connection with the development of the
17    municipal convention hall. This exemption includes
18    existing public-facilities corporations as provided in
19    Section 11-65-25 of the Illinois Municipal Code. This
20    paragraph is exempt from the provisions of Section 2-70.
21        (42) Beginning January 1, 2017 and through December
22    31, 2026, menstrual pads, tampons, and menstrual cups.
23        (43) Merchandise that is subject to the Rental
24    Purchase Agreement Occupation and Use Tax. The purchaser
25    must certify that the item is purchased to be rented
26    subject to a rental purchase agreement, as defined in the

 

 

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1    Rental Purchase Agreement Act, and provide proof of
2    registration under the Rental Purchase Agreement
3    Occupation and Use Tax Act. This paragraph is exempt from
4    the provisions of Section 2-70.
5        (44) Qualified tangible personal property used in the
6    construction or operation of a data center that has been
7    granted a certificate of exemption by the Department of
8    Commerce and Economic Opportunity, whether that tangible
9    personal property is purchased by the owner, operator, or
10    tenant of the data center or by a contractor or
11    subcontractor of the owner, operator, or tenant. Data
12    centers that would have qualified for a certificate of
13    exemption prior to January 1, 2020 had Public Act 101-31
14    this amendatory Act of the 101st General Assembly been in
15    effect, may apply for and obtain an exemption for
16    subsequent purchases of computer equipment or enabling
17    software purchased or leased to upgrade, supplement, or
18    replace computer equipment or enabling software purchased
19    or leased in the original investment that would have
20    qualified.
21        The Department of Commerce and Economic Opportunity
22    shall grant a certificate of exemption under this item
23    (44) to qualified data centers as defined by Section
24    605-1025 of the Department of Commerce and Economic
25    Opportunity Law of the Civil Administrative Code of
26    Illinois.

 

 

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1        For the purposes of this item (44):
2            "Data center" means a building or a series of
3        buildings rehabilitated or constructed to house
4        working servers in one physical location or multiple
5        sites within the State of Illinois.
6            "Qualified tangible personal property" means:
7        electrical systems and equipment; climate control and
8        chilling equipment and systems; mechanical systems and
9        equipment; monitoring and secure systems; emergency
10        generators; hardware; computers; servers; data storage
11        devices; network connectivity equipment; racks;
12        cabinets; telecommunications cabling infrastructure;
13        raised floor systems; peripheral components or
14        systems; software; mechanical, electrical, or plumbing
15        systems; battery systems; cooling systems and towers;
16        temperature control systems; other cabling; and other
17        data center infrastructure equipment and systems
18        necessary to operate qualified tangible personal
19        property, including fixtures; and component parts of
20        any of the foregoing, including installation,
21        maintenance, repair, refurbishment, and replacement of
22        qualified tangible personal property to generate,
23        transform, transmit, distribute, or manage electricity
24        necessary to operate qualified tangible personal
25        property; and all other tangible personal property
26        that is essential to the operations of a computer data

 

 

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1        center. The term "qualified tangible personal
2        property" also includes building materials physically
3        incorporated into the qualifying data center. To
4        document the exemption allowed under this Section, the
5        retailer must obtain from the purchaser a copy of the
6        certificate of eligibility issued by the Department of
7        Commerce and Economic Opportunity.
8        This item (44) is exempt from the provisions of
9    Section 2-70.
10        (45) Beginning January 1, 2020 and through December
11    31, 2020, sales of tangible personal property made by a
12    marketplace seller over a marketplace for which tax is due
13    under this Act but for which use tax has been collected and
14    remitted to the Department by a marketplace facilitator
15    under Section 2d of the Use Tax Act are exempt from tax
16    under this Act. A marketplace seller claiming this
17    exemption shall maintain books and records demonstrating
18    that the use tax on such sales has been collected and
19    remitted by a marketplace facilitator. Marketplace sellers
20    that have properly remitted tax under this Act on such
21    sales may file a claim for credit as provided in Section 6
22    of this Act. No claim is allowed, however, for such taxes
23    for which a credit or refund has been issued to the
24    marketplace facilitator under the Use Tax Act, or for
25    which the marketplace facilitator has filed a claim for
26    credit or refund under the Use Tax Act.

 

 

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1        (46) Beginning July 1, 2022, breast pumps, breast pump
2    collection and storage supplies, and breast pump kits.
3    This item (46) is exempt from the provisions of Section
4    2-70. As used in this item (46):
5        "Breast pump" means an electrically controlled or
6    manually controlled pump device designed or marketed to be
7    used to express milk from a human breast during lactation,
8    including the pump device and any battery, AC adapter, or
9    other power supply unit that is used to power the pump
10    device and is packaged and sold with the pump device at the
11    time of sale.
12        "Breast pump collection and storage supplies" means
13    items of tangible personal property designed or marketed
14    to be used in conjunction with a breast pump to collect
15    milk expressed from a human breast and to store collected
16    milk until it is ready for consumption.
17        "Breast pump collection and storage supplies"
18    includes, but is not limited to: breast shields and breast
19    shield connectors; breast pump tubes and tubing adapters;
20    breast pump valves and membranes; backflow protectors and
21    backflow protector adaptors; bottles and bottle caps
22    specific to the operation of the breast pump; and breast
23    milk storage bags.
24        "Breast pump collection and storage supplies" does not
25    include: (1) bottles and bottle caps not specific to the
26    operation of the breast pump; (2) breast pump travel bags

 

 

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1    and other similar carrying accessories, including ice
2    packs, labels, and other similar products; (3) breast pump
3    cleaning supplies; (4) nursing bras, bra pads, breast
4    shells, and other similar products; and (5) creams,
5    ointments, and other similar products that relieve
6    breastfeeding-related symptoms or conditions of the
7    breasts or nipples, unless sold as part of a breast pump
8    kit that is pre-packaged by the breast pump manufacturer
9    or distributor.
10        "Breast pump kit" means a kit that: (1) contains no
11    more than a breast pump, breast pump collection and
12    storage supplies, a rechargeable battery for operating the
13    breast pump, a breastmilk cooler, bottle stands, ice
14    packs, and a breast pump carrying case; and (2) is
15    pre-packaged as a breast pump kit by the breast pump
16    manufacturer or distributor.
17        (47) (46) Tangible personal property sold by or on
18    behalf of the State Treasurer pursuant to the Revised
19    Uniform Unclaimed Property Act. This item (47) (46) is
20    exempt from the provisions of Section 2-70.
21(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
22101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
238-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
24102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
25eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 

 

 

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1    Section 99. Effective date. This Act takes effect January
21, 2024.".