103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2210

 

Introduced 2/10/2023, by Sen. Christopher Belt

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. In provisions concerning an exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft, removes language excluding materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants. Removes language providing that the exemption applies only to property used by persons who hold an Air Agency Certificate, have a Class IV Rating, and conduct operations in accordance with certain Federal Aviation Administration regulations. Effective immediately.


LRB103 28351 HLH 54731 b

 

 

A BILL FOR

 

SB2210LRB103 28351 HLH 54731 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing 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
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    data center. The term "qualified tangible personal
2    property" also includes building materials physically
3    incorporated in to the qualifying data center. To document
4    the exemption allowed under this Section, the retailer
5    must obtain from the purchaser a copy of the certificate
6    of eligibility issued by the Department of Commerce and
7    Economic Opportunity.
8    This item (40) is exempt from the provisions of Section
93-90.
10    (41) Beginning July 1, 2022, breast pumps, breast pump
11collection and storage supplies, and breast pump kits. This
12item (41) is exempt from the provisions of Section 3-90. As
13used in this item (41):
14        "Breast pump" means an electrically controlled or
15    manually controlled pump device designed or marketed to be
16    used to express milk from a human breast during lactation,
17    including the pump device and any battery, AC adapter, or
18    other power supply unit that is used to power the pump
19    device and is packaged and sold with the pump device at the
20    time of sale.
21        "Breast pump collection and storage supplies" means
22    items of tangible personal property designed or marketed
23    to be used in conjunction with a breast pump to collect
24    milk expressed from a human breast and to store collected
25    milk until it is ready for consumption.
26        "Breast pump collection and storage supplies"

 

 

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1    includes, but is not limited to: breast shields and breast
2    shield connectors; breast pump tubes and tubing adapters;
3    breast pump valves and membranes; backflow protectors and
4    backflow protector adaptors; bottles and bottle caps
5    specific to the operation of the breast pump; and breast
6    milk storage bags.
7        "Breast pump collection and storage supplies" does not
8    include: (1) bottles and bottle caps not specific to the
9    operation of the breast pump; (2) breast pump travel bags
10    and other similar carrying accessories, including ice
11    packs, labels, and other similar products; (3) breast pump
12    cleaning supplies; (4) nursing bras, bra pads, breast
13    shells, and other similar products; and (5) creams,
14    ointments, and other similar products that relieve
15    breastfeeding-related symptoms or conditions of the
16    breasts or nipples, unless sold as part of a breast pump
17    kit that is pre-packaged by the breast pump manufacturer
18    or distributor.
19        "Breast pump kit" means a kit that: (1) contains no
20    more than a breast pump, breast pump collection and
21    storage supplies, a rechargeable battery for operating the
22    breast pump, a breastmilk cooler, bottle stands, ice
23    packs, and a breast pump carrying case; and (2) is
24    pre-packaged as a breast pump kit by the breast pump
25    manufacturer or distributor.
26    (42) (41) Tangible personal property sold by or on behalf

 

 

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1of the State Treasurer pursuant to the Revised Uniform
2Unclaimed Property Act. This item (42) (41) is exempt from the
3provisions of Section 3-90.
4(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
5101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
66-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
7102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
8eff. 5-27-22; revised 8-1-22.)
 
9    Section 10. The Service Use Tax Act is amended by changing
10Section 3-5 as follows:
 
11    (35 ILCS 110/3-5)
12    Sec. 3-5. Exemptions. Use of the following tangible
13personal property is exempt from the tax imposed by this Act:
14    (1) Personal property purchased from a corporation,
15society, association, foundation, institution, or
16organization, other than a limited liability company, that is
17organized and operated as a not-for-profit service enterprise
18for the benefit of persons 65 years of age or older if the
19personal property was not purchased by the enterprise for the
20purpose of resale by the enterprise.
21    (2) Personal property purchased by a non-profit Illinois
22county fair association for use in conducting, operating, or
23promoting the county fair.
24    (3) Personal property purchased by a not-for-profit arts

 

 

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1or cultural organization that establishes, by proof required
2by the Department by rule, that it has received an exemption
3under Section 501(c)(3) of the Internal Revenue Code and that
4is organized and operated primarily for the presentation or
5support of arts or cultural programming, activities, or
6services. These organizations include, but are not limited to,
7music and dramatic arts organizations such as symphony
8orchestras and theatrical groups, arts and cultural service
9organizations, local arts councils, visual arts organizations,
10and media arts organizations. On and after July 1, 2001 (the
11effective date of Public Act 92-35), however, an entity
12otherwise eligible for this exemption shall not make tax-free
13purchases unless it has an active identification number issued
14by the Department.
15    (4) Legal tender, currency, medallions, or gold or silver
16coinage issued by the State of Illinois, the government of the
17United States of America, or the government of any foreign
18country, and bullion.
19    (5) Until July 1, 2003 and beginning again on September 1,
202004 through August 30, 2014, graphic arts machinery and
21equipment, including repair and replacement parts, both new
22and used, and including that manufactured on special order or
23purchased for lease, certified by the purchaser to be used
24primarily for graphic arts production. Equipment includes
25chemicals or chemicals acting as catalysts but only if the
26chemicals or chemicals acting as catalysts effect a direct and

 

 

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

 

 

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

 

 

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

 

 

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1    (11) Proceeds from the sale of photoprocessing machinery
2and equipment, including repair and replacement parts, both
3new and used, including that manufactured on special order,
4certified by the purchaser to be used primarily for
5photoprocessing, and including photoprocessing machinery and
6equipment purchased for lease.
7    (12) Until July 1, 2028, coal and aggregate exploration,
8mining, off-highway hauling, processing, maintenance, and
9reclamation equipment, including replacement parts and
10equipment, and including equipment purchased for lease, but
11excluding motor vehicles required to be registered under the
12Illinois Vehicle Code. The changes made to this Section by
13Public Act 97-767 apply on and after July 1, 2003, but no claim
14for credit or refund is allowed on or after August 16, 2013
15(the effective date of Public Act 98-456) for such taxes paid
16during the period beginning July 1, 2003 and ending on August
1716, 2013 (the effective date of Public Act 98-456).
18    (13) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (14) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (14) is exempt from the
26provisions of Section 3-75, and the exemption provided for

 

 

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1under this item (14) applies for all periods beginning May 30,
21995, but no claim for credit or refund is allowed on or after
3January 1, 2008 (the effective date of Public Act 95-88) for
4such taxes paid during the period beginning May 30, 2000 and
5ending on January 1, 2008 (the effective date of Public Act
695-88).
7    (15) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients purchased by a
10lessor who leases the equipment, under a lease of one year or
11longer executed or in effect at the time the lessor would
12otherwise be subject to the tax imposed by this Act, to a
13hospital that has been issued an active tax exemption
14identification number by the Department under Section 1g of
15the Retailers' Occupation Tax Act. If the equipment is leased
16in a manner that does not qualify for this exemption or is used
17in any other non-exempt manner, the lessor shall be liable for
18the tax imposed under this Act or the Use Tax Act, as the case
19may be, based on the fair market value of the property at the
20time the non-qualifying use occurs. No lessor shall collect or
21attempt to collect an amount (however designated) that
22purports to reimburse that lessor for the tax imposed by this
23Act or the Use Tax Act, as the case may be, if the tax has not
24been paid by the lessor. If a lessor improperly collects any
25such amount from the lessee, the lessee shall have a legal
26right to claim a refund of that amount from the lessor. If,

 

 

SB2210- 30 -LRB103 28351 HLH 54731 b

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

 

 

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (18) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including but not limited to municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (19) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-75.
25    (20) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-75.
6    (22) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-75.
16    (23) Beginning August 23, 2001 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19soft drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or in a licensed facility as defined

 

 

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

 

 

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1Section 3-75.
2    (25) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), personal property purchased by a lessor
4who leases the property, under a lease of one year or longer
5executed or in effect at the time the lessor would otherwise be
6subject to the tax imposed by this Act, to a governmental body
7that has been issued an active tax exemption identification
8number by the Department under Section 1g of the Retailers'
9Occupation Tax Act. If the property is leased in a manner that
10does not qualify for this exemption or is used in any other
11nonexempt manner, the lessor shall be liable for the tax
12imposed under this Act or the Use Tax Act, as the case may be,
13based on the fair market value of the property at the time the
14nonqualifying use occurs. No lessor shall collect or attempt
15to collect an amount (however designated) that purports to
16reimburse that lessor for the tax imposed by this Act or the
17Use Tax Act, as the case may be, if the tax has not been paid
18by the lessor. If a lessor improperly collects any such amount
19from the lessee, the lessee shall have a legal right to claim a
20refund of that amount from the lessor. If, however, that
21amount is not refunded to the lessee for any reason, the lessor
22is liable to pay that amount to the Department. This paragraph
23is exempt from the provisions of Section 3-75.
24    (26) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued
3under Title IV of the Environmental Protection Act. This
4paragraph is exempt from the provisions of Section 3-75.
5    (27) Beginning January 1, 2010 and continuing through
6December 31, 2024, materials, parts, equipment, components,
7and furnishings incorporated into or upon an aircraft as part
8of the modification, refurbishment, completion, replacement,
9repair, or maintenance of the aircraft. This exemption
10includes consumable supplies used in the modification,
11refurbishment, completion, replacement, repair, and
12maintenance of aircraft, but excludes any materials, parts,
13equipment, components, and consumable supplies used in the
14modification, replacement, repair, and maintenance of aircraft
15engines or power plants, whether such engines or power plants
16are installed or uninstalled upon any such aircraft.
17"Consumable supplies" include, but are not limited to,
18adhesive, tape, sandpaper, general purpose lubricants,
19cleaning solution, latex gloves, and protective films. This
20exemption applies only to the use of qualifying tangible
21personal property transferred incident to the modification,
22refurbishment, completion, replacement, repair, or maintenance
23of aircraft by persons who (i) hold an Air Agency Certificate
24and are empowered to operate an approved repair station by the
25Federal Aviation Administration, (ii) have a Class IV Rating,
26and (iii) conduct operations in accordance with Part 145 of

 

 

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1the Federal Aviation Regulations. The exemption does not
2include aircraft operated by a commercial air carrier
3providing scheduled passenger air service pursuant to
4authority issued under Part 121 or Part 129 of the Federal
5Aviation Regulations. The changes made to this paragraph (27)
6by Public Act 98-534 are declarative of existing law. It is the
7intent of the General Assembly that the exemption under this
8paragraph (27) applies continuously from January 1, 2010
9through December 31, 2024; however, no claim for credit or
10refund is allowed for taxes paid as a result of the
11disallowance of this exemption on or after January 1, 2015 and
12prior to February 5, 2020 (the effective date of Public Act
13101-629) this amendatory Act of the 101st General Assembly.
14    (28) Tangible personal property purchased by a
15public-facilities corporation, as described in Section
1611-65-10 of the Illinois Municipal Code, for purposes of
17constructing or furnishing a municipal convention hall, but
18only if the legal title to the municipal convention hall is
19transferred to the municipality without any further
20consideration by or on behalf of the municipality at the time
21of the completion of the municipal convention hall or upon the
22retirement or redemption of any bonds or other debt
23instruments issued by the public-facilities corporation in
24connection with the development of the municipal convention
25hall. This exemption includes existing public-facilities
26corporations as provided in Section 11-65-25 of the Illinois

 

 

SB2210- 38 -LRB103 28351 HLH 54731 b

1Municipal Code. This paragraph is exempt from the provisions
2of Section 3-75.
3    (29) Beginning January 1, 2017 and through December 31,
42026, menstrual pads, tampons, and menstrual cups.
5    (30) Tangible personal property transferred to a purchaser
6who is exempt from the tax imposed by this Act by operation of
7federal law. This paragraph is exempt from the provisions of
8Section 3-75.
9    (31) Qualified tangible personal property used in the
10construction or operation of a data center that has been
11granted a certificate of exemption by the Department of
12Commerce and Economic Opportunity, whether that tangible
13personal property is purchased by the owner, operator, or
14tenant of the data center or by a contractor or subcontractor
15of the owner, operator, or tenant. Data centers that would
16have qualified for a certificate of exemption prior to January
171, 2020 had Public Act 101-31 this amendatory Act of the 101st
18General Assembly been in effect, may apply for and obtain an
19exemption for subsequent purchases of computer equipment or
20enabling software purchased or leased to upgrade, supplement,
21or replace computer equipment or enabling software purchased
22or leased in the original investment that would have
23qualified.
24    The Department of Commerce and Economic Opportunity shall
25grant a certificate of exemption under this item (31) to
26qualified data centers as defined by Section 605-1025 of the

 

 

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

 

 

SB2210- 40 -LRB103 28351 HLH 54731 b

1    property that is essential to the operations of a computer
2    data center. The term "qualified tangible personal
3    property" also includes building materials physically
4    incorporated in to the qualifying data center. To document
5    the exemption allowed under this Section, the retailer
6    must obtain from the purchaser a copy of the certificate
7    of eligibility issued by the Department of Commerce and
8    Economic Opportunity.
9    This item (31) is exempt from the provisions of Section
103-75.
11    (32) Beginning July 1, 2022, breast pumps, breast pump
12collection and storage supplies, and breast pump kits. This
13item (32) is exempt from the provisions of Section 3-75. As
14used in this item (32):
15        "Breast pump" means an electrically controlled or
16    manually controlled pump device designed or marketed to be
17    used to express milk from a human breast during lactation,
18    including the pump device and any battery, AC adapter, or
19    other power supply unit that is used to power the pump
20    device and is packaged and sold with the pump device at the
21    time of sale.
22        "Breast pump collection and storage supplies" means
23    items of tangible personal property designed or marketed
24    to be used in conjunction with a breast pump to collect
25    milk expressed from a human breast and to store collected
26    milk until it is ready for consumption.

 

 

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

 

 

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1    (33) (32) Tangible personal property sold by or on behalf
2of the State Treasurer pursuant to the Revised Uniform
3Unclaimed Property Act. This item (33) (32) is exempt from the
4provisions of Section 3-75.
5(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
6101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
770, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
875-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
9    Section 15. The Service Occupation Tax Act is amended by
10changing Section 3-5 as follows:
 
11    (35 ILCS 115/3-5)
12    Sec. 3-5. Exemptions. The following tangible personal
13property is exempt from the tax imposed by this Act:
14    (1) Personal property sold by a corporation, society,
15association, foundation, institution, or organization, other
16than a limited liability company, that is organized and
17operated as a not-for-profit service enterprise for the
18benefit of persons 65 years of age or older if the personal
19property was not purchased by the enterprise for the purpose
20of resale by the enterprise.
21    (2) Personal property purchased by a not-for-profit
22Illinois county fair association for use in conducting,
23operating, or promoting the county fair.
24    (3) Personal property purchased by any not-for-profit arts

 

 

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1or cultural organization that establishes, by proof required
2by the Department by rule, that it has received an exemption
3under Section 501(c)(3) of the Internal Revenue Code and that
4is organized and operated primarily for the presentation or
5support of arts or cultural programming, activities, or
6services. These organizations include, but are not limited to,
7music and dramatic arts organizations such as symphony
8orchestras and theatrical groups, arts and cultural service
9organizations, local arts councils, visual arts organizations,
10and media arts organizations. On and after July 1, 2001 (the
11effective date of Public Act 92-35), however, an entity
12otherwise eligible for this exemption shall not make tax-free
13purchases unless it has an active identification number issued
14by the Department.
15    (4) Legal tender, currency, medallions, or gold or silver
16coinage issued by the State of Illinois, the government of the
17United States of America, or the government of any foreign
18country, and bullion.
19    (5) Until July 1, 2003 and beginning again on September 1,
202004 through August 30, 2014, graphic arts machinery and
21equipment, including repair and replacement parts, both new
22and used, and including that manufactured on special order or
23purchased for lease, certified by the purchaser to be used
24primarily for graphic arts production. Equipment includes
25chemicals or chemicals acting as catalysts but only if the
26chemicals or chemicals acting as catalysts effect a direct and

 

 

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

 

 

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1    Farm machinery and equipment shall include precision
2farming equipment that is installed or purchased to be
3installed on farm machinery and equipment including, but not
4limited to, tractors, harvesters, sprayers, planters, seeders,
5or spreaders. Precision farming equipment includes, but is not
6limited to, soil testing sensors, computers, monitors,
7software, global positioning and mapping systems, and other
8such equipment.
9    Farm machinery and equipment also includes computers,
10sensors, software, and related equipment used primarily in the
11computer-assisted operation of production agriculture
12facilities, equipment, and activities such as, but not limited
13to, the collection, monitoring, and correlation of animal and
14crop data for the purpose of formulating animal diets and
15agricultural chemicals. This item (7) is exempt from the
16provisions of Section 3-55.
17    (8) Until June 30, 2013, fuel and petroleum products sold
18to or used by an air common carrier, certified by the carrier
19to be used for consumption, shipment, or storage in the
20conduct of its business as an air common carrier, for a flight
21destined for or returning from a location or locations outside
22the United States without regard to previous or subsequent
23domestic stopovers.
24    Beginning July 1, 2013, fuel and petroleum products sold
25to or used by an air carrier, certified by the carrier to be
26used for consumption, shipment, or storage in the conduct of

 

 

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

 

 

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1repair and replacement parts, both new and used, including
2that manufactured on special order, certified by the purchaser
3to be used primarily for photoprocessing, and including
4photoprocessing machinery and equipment purchased for lease.
5    (12) Until July 1, 2028, coal and aggregate exploration,
6mining, off-highway hauling, processing, maintenance, and
7reclamation equipment, including replacement parts and
8equipment, and including equipment purchased for lease, but
9excluding motor vehicles required to be registered under the
10Illinois Vehicle Code. The changes made to this Section by
11Public Act 97-767 apply on and after July 1, 2003, but no claim
12for credit or refund is allowed on or after August 16, 2013
13(the effective date of Public Act 98-456) for such taxes paid
14during the period beginning July 1, 2003 and ending on August
1516, 2013 (the effective date of Public Act 98-456).
16    (13) Beginning January 1, 1992 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19soft drinks and food that has been prepared for immediate
20consumption) and prescription and non-prescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or in a licensed facility as defined

 

 

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1in the ID/DD Community Care Act, the MC/DD Act, or the
2Specialized Mental Health Rehabilitation Act of 2013.
3    (14) Semen used for artificial insemination of livestock
4for direct agricultural production.
5    (15) 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 (15) is exempt from the
11provisions of Section 3-55, and the exemption provided for
12under this item (15) 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    (16) Computers and communications equipment utilized for
19any hospital purpose and equipment used in the diagnosis,
20analysis, or treatment of hospital patients sold to a lessor
21who leases the equipment, under a lease of one year or longer
22executed or in effect at the time of the purchase, to a
23hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25the Retailers' Occupation Tax Act.
26    (17) Personal property sold to a lessor who leases the

 

 

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

 

 

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1in the declared disaster area within 6 months after the
2disaster.
3    (20) Beginning July 1, 1999, game or game birds sold at a
4"game breeding and hunting preserve area" as that term is used
5in the Wildlife Code. This paragraph is exempt from the
6provisions of Section 3-55.
7    (21) A motor vehicle, as that term is defined in Section
81-146 of the Illinois Vehicle Code, that is donated to a
9corporation, limited liability company, society, association,
10foundation, or institution that is determined by the
11Department to be organized and operated exclusively for
12educational purposes. For purposes of this exemption, "a
13corporation, limited liability company, society, association,
14foundation, or institution organized and operated exclusively
15for educational purposes" means all tax-supported public
16schools, private schools that offer systematic instruction in
17useful branches of learning by methods common to public
18schools and that compare favorably in their scope and
19intensity with the course of study presented in tax-supported
20schools, and vocational or technical schools or institutes
21organized and operated exclusively to provide a course of
22study of not less than 6 weeks duration and designed to prepare
23individuals to follow a trade or to pursue a manual,
24technical, mechanical, industrial, business, or commercial
25occupation.
26    (22) Beginning January 1, 2000, personal property,

 

 

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1including food, purchased through fundraising events for the
2benefit of a public or private elementary or secondary school,
3a group of those schools, or one or more school districts if
4the events are sponsored by an entity recognized by the school
5district that consists primarily of volunteers and includes
6parents and teachers of the school children. This paragraph
7does not apply to fundraising events (i) for the benefit of
8private home instruction or (ii) for which the fundraising
9entity purchases the personal property sold at the events from
10another individual or entity that sold the property for the
11purpose of resale by the fundraising entity and that profits
12from the sale to the fundraising entity. This paragraph is
13exempt from the provisions of Section 3-55.
14    (23) Beginning January 1, 2000 and through December 31,
152001, new or used automatic vending machines that prepare and
16serve hot food and beverages, including coffee, soup, and
17other items, and replacement parts for these machines.
18Beginning January 1, 2002 and through June 30, 2003, machines
19and parts for machines used in commercial, coin-operated
20amusement and vending business if a use or occupation tax is
21paid on the gross receipts derived from the use of the
22commercial, coin-operated amusement and vending machines. This
23paragraph is exempt from the provisions of Section 3-55.
24    (24) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), computers and communications equipment
26utilized for any hospital purpose and equipment used in the

 

 

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1diagnosis, analysis, or treatment of hospital patients sold to
2a lessor who leases the equipment, under a lease of one year or
3longer executed or in effect at the time of the purchase, to a
4hospital that has been issued an active tax exemption
5identification number by the Department under Section 1g of
6the Retailers' Occupation Tax Act. This paragraph is exempt
7from the provisions of Section 3-55.
8    (25) Beginning on August 2, 2001 (the effective date of
9Public Act 92-227), personal property sold to a lessor who
10leases the property, under a lease of one year or longer
11executed or in effect at the time of the purchase, to a
12governmental body that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. This paragraph is exempt
15from the provisions of Section 3-55.
16    (26) Beginning on January 1, 2002 and through June 30,
172016, tangible personal property purchased from an Illinois
18retailer by a taxpayer engaged in centralized purchasing
19activities in Illinois who will, upon receipt of the property
20in Illinois, temporarily store the property in Illinois (i)
21for the purpose of subsequently transporting it outside this
22State for use or consumption thereafter solely outside this
23State or (ii) for the purpose of being processed, fabricated,
24or manufactured into, attached to, or incorporated into other
25tangible personal property to be transported outside this
26State and thereafter used or consumed solely outside this

 

 

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1State. The Director of Revenue shall, pursuant to rules
2adopted in accordance with the Illinois Administrative
3Procedure Act, issue a permit to any taxpayer in good standing
4with the Department who is eligible for the exemption under
5this paragraph (26). The permit issued under this paragraph
6(26) shall authorize the holder, to the extent and in the
7manner specified in the rules adopted under this Act, to
8purchase tangible personal property from a retailer exempt
9from the taxes imposed by this Act. Taxpayers shall maintain
10all necessary books and records to substantiate the use and
11consumption of all such tangible personal property outside of
12the State of Illinois.
13    (27) Beginning January 1, 2008, tangible personal property
14used in the construction or maintenance of a community water
15supply, as defined under Section 3.145 of the Environmental
16Protection Act, that is operated by a not-for-profit
17corporation that holds a valid water supply permit issued
18under Title IV of the Environmental Protection Act. This
19paragraph is exempt from the provisions of Section 3-55.
20    (28) Tangible personal property sold to a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt
3instruments issued by the public-facilities corporation in
4connection with the development of the municipal convention
5hall. This exemption includes existing public-facilities
6corporations as provided in Section 11-65-25 of the Illinois
7Municipal Code. This paragraph is exempt from the provisions
8of Section 3-55.
9    (29) Beginning January 1, 2010 and continuing through
10December 31, 2024, materials, parts, equipment, components,
11and furnishings incorporated into or upon an aircraft as part
12of the modification, refurbishment, completion, replacement,
13repair, or maintenance of the aircraft. This exemption
14includes consumable supplies used in the modification,
15refurbishment, completion, replacement, repair, and
16maintenance of aircraft, but excludes any materials, parts,
17equipment, components, and consumable supplies used in the
18modification, replacement, repair, and maintenance of aircraft
19engines or power plants, whether such engines or power plants
20are installed or uninstalled upon any such aircraft.
21"Consumable supplies" include, but are not limited to,
22adhesive, tape, sandpaper, general purpose lubricants,
23cleaning solution, latex gloves, and protective films. This
24exemption applies only to the transfer of qualifying tangible
25personal property incident to the modification, refurbishment,
26completion, replacement, repair, or maintenance of an aircraft

 

 

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1by persons who (i) hold an Air Agency Certificate and are
2empowered to operate an approved repair station by the Federal
3Aviation Administration, (ii) have a Class IV Rating, and
4(iii) conduct operations in accordance with Part 145 of the
5Federal Aviation Regulations. The exemption does not include
6aircraft operated by a commercial air carrier providing
7scheduled passenger air service pursuant to authority issued
8under Part 121 or Part 129 of the Federal Aviation
9Regulations. The changes made to this paragraph (29) by Public
10Act 98-534 are declarative of existing law. It is the intent of
11the General Assembly that the exemption under this paragraph
12(29) applies continuously from January 1, 2010 through
13December 31, 2024; however, no claim for credit or refund is
14allowed for taxes paid as a result of the disallowance of this
15exemption on or after January 1, 2015 and prior to February 5,
162020 (the effective date of Public Act 101-629) this
17amendatory Act of the 101st General Assembly.
18    (30) Beginning January 1, 2017 and through December 31,
192026, menstrual pads, tampons, and menstrual cups.
20    (31) Tangible personal property transferred to a purchaser
21who is exempt from tax by operation of federal law. This
22paragraph is exempt from the provisions of Section 3-55.
23    (32) 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

 

 

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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 (32) 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 (32):
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 (32) is exempt from the provisions of Section
243-55.
25    (33) Beginning July 1, 2022, breast pumps, breast pump
26collection and storage supplies, and breast pump kits. This

 

 

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1item (33) is exempt from the provisions of Section 3-55. As
2used in this item (33):
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    (34) (33) Tangible personal property sold by or on behalf
16of the State Treasurer pursuant to the Revised Uniform
17Unclaimed Property Act. This item (34) (33) is exempt from the
18provisions of Section 3-55.
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 70-15, eff. 4-19-22; 102-700, Article 75, Section
2275-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
23    Section 20. The Retailers' Occupation Tax Act is amended
24by changing Section 2-5 as follows:
 

 

 

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

 

 

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1        Farm machinery and equipment shall include precision
2    farming equipment that is installed or purchased to be
3    installed on farm machinery and equipment including, but
4    not limited to, tractors, harvesters, sprayers, planters,
5    seeders, or spreaders. Precision farming equipment
6    includes, but is not limited to, soil testing sensors,
7    computers, monitors, software, global positioning and
8    mapping systems, and other such equipment.
9        Farm machinery and equipment also includes computers,
10    sensors, software, and related equipment used primarily in
11    the computer-assisted operation of production agriculture
12    facilities, equipment, and activities such as, but not
13    limited to, the collection, monitoring, and correlation of
14    animal and crop data for the purpose of formulating animal
15    diets and agricultural chemicals. This item (2) is exempt
16    from the provisions of Section 2-70.
17        (3) Until July 1, 2003, distillation machinery and
18    equipment, sold as a unit or kit, assembled or installed
19    by the retailer, certified by the user to be used only for
20    the production of ethyl alcohol that will be used for
21    consumption as motor fuel or as a component of motor fuel
22    for the personal use of the user, and not subject to sale
23    or resale.
24        (4) Until July 1, 2003 and beginning again September
25    1, 2004 through August 30, 2014, graphic arts machinery
26    and equipment, including repair and replacement parts,

 

 

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

 

 

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1    exemption under Section 501(c)(3) of the Internal Revenue
2    Code and that is organized and operated primarily for the
3    presentation or support of arts or cultural programming,
4    activities, or services. These organizations include, but
5    are not limited to, music and dramatic arts organizations
6    such as symphony orchestras and theatrical groups, arts
7    and cultural service organizations, local arts councils,
8    visual arts organizations, and media arts organizations.
9    On and after July 1, 2001 (the effective date of Public Act
10    92-35), however, an entity otherwise eligible for this
11    exemption shall not make tax-free purchases unless it has
12    an active identification number issued by the Department.
13        (10) Personal property sold by a corporation, society,
14    association, foundation, institution, or organization,
15    other than a limited liability company, that is organized
16    and operated as a not-for-profit service enterprise for
17    the benefit of persons 65 years of age or older if the
18    personal property was not purchased by the enterprise for
19    the purpose of resale by the enterprise.
20        (11) Personal property sold to a governmental body, to
21    a corporation, society, association, foundation, or
22    institution organized and operated exclusively for
23    charitable, religious, or educational purposes, or to a
24    not-for-profit corporation, society, association,
25    foundation, institution, or organization that has no
26    compensated officers or employees and that is organized

 

 

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

 

 

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

 

 

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

 

 

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1    the property, or shares with another common carrier in the
2    transportation of the property, out of Illinois on a
3    standard uniform bill of lading showing the seller of the
4    property as the shipper or consignor of the property to a
5    destination outside Illinois, for use outside Illinois.
6        (18) Legal tender, currency, medallions, or gold or
7    silver coinage issued by the State of Illinois, the
8    government of the United States of America, or the
9    government of any foreign country, and bullion.
10        (19) Until July 1, 2003, oil field exploration,
11    drilling, and production equipment, including (i) rigs and
12    parts of rigs, rotary rigs, cable tool rigs, and workover
13    rigs, (ii) pipe and tubular goods, including casing and
14    drill strings, (iii) pumps and pump-jack units, (iv)
15    storage tanks and flow lines, (v) any individual
16    replacement part for oil field exploration, drilling, and
17    production equipment, and (vi) machinery and equipment
18    purchased for lease; but excluding motor vehicles required
19    to be registered under the Illinois Vehicle Code.
20        (20) Photoprocessing machinery and equipment,
21    including repair and replacement parts, both new and used,
22    including that manufactured on special order, certified by
23    the purchaser to be used primarily for photoprocessing,
24    and including photoprocessing machinery and equipment
25    purchased for lease.
26        (21) Until July 1, 2028, coal and aggregate

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        require.
2        For purposes of this item (25-7):
3        "Based in this State" means hangared, stored, or
4    otherwise used, excluding post-sale customizations as
5    defined in this Section, for 10 or more days in each
6    12-month period immediately following the date of the sale
7    of the aircraft.
8        "Registered in this State" means an aircraft
9    registered with the Department of Transportation,
10    Aeronautics Division, or titled or registered with the
11    Federal Aviation Administration to an address located in
12    this State.
13        This paragraph (25-7) is exempt from the provisions of
14    Section 2-70.
15        (26) Semen used for artificial insemination of
16    livestock for direct agricultural production.
17        (27) Horses, or interests in horses, registered with
18    and meeting the requirements of any of the Arabian Horse
19    Club Registry of America, Appaloosa Horse Club, American
20    Quarter Horse Association, United States Trotting
21    Association, or Jockey Club, as appropriate, used for
22    purposes of breeding or racing for prizes. This item (27)
23    is exempt from the provisions of Section 2-70, and the
24    exemption provided for under this item (27) applies for
25    all periods beginning May 30, 1995, but no claim for
26    credit or refund is allowed on or after January 1, 2008

 

 

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1    (the effective date of Public Act 95-88) for such taxes
2    paid during the period beginning May 30, 2000 and ending
3    on January 1, 2008 (the effective date of Public Act
4    95-88).
5        (28) Computers and communications equipment utilized
6    for any hospital purpose and equipment used in the
7    diagnosis, analysis, or treatment of hospital patients
8    sold to a lessor who leases the equipment, under a lease of
9    one year or longer executed or in effect at the time of the
10    purchase, to a hospital that has been issued an active tax
11    exemption identification number by the Department under
12    Section 1g of this Act.
13        (29) Personal property sold to a lessor who leases the
14    property, under a lease of one year or longer executed or
15    in effect at the time of the purchase, to a governmental
16    body that has been issued an active tax exemption
17    identification number by the Department under Section 1g
18    of this Act.
19        (30) Beginning with taxable years ending on or after
20    December 31, 1995 and ending with taxable years ending on
21    or before December 31, 2004, personal property that is
22    donated for disaster relief to be used in a State or
23    federally declared disaster area in Illinois or bordering
24    Illinois by a manufacturer or retailer that is registered
25    in this State to a corporation, society, association,
26    foundation, or institution that has been issued a sales

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    thereafter solely outside this State or (ii) for the
2    purpose of being processed, fabricated, or manufactured
3    into, attached to, or incorporated into other tangible
4    personal property to be transported outside this State and
5    thereafter used or consumed solely outside this State. The
6    Director of Revenue shall, pursuant to rules adopted in
7    accordance with the Illinois Administrative Procedure Act,
8    issue a permit to any taxpayer in good standing with the
9    Department who is eligible for the exemption under this
10    paragraph (38). The permit issued under this paragraph
11    (38) shall authorize the holder, to the extent and in the
12    manner specified in the rules adopted under this Act, to
13    purchase tangible personal property from a retailer exempt
14    from the taxes imposed by this Act. Taxpayers shall
15    maintain all necessary books and records to substantiate
16    the use and consumption of all such tangible personal
17    property outside of the State of Illinois.
18        (39) Beginning January 1, 2008, tangible personal
19    property used in the construction or maintenance of a
20    community water supply, as defined under Section 3.145 of
21    the Environmental Protection Act, that is operated by a
22    not-for-profit corporation that holds a valid water supply
23    permit issued under Title IV of the Environmental
24    Protection Act. This paragraph is exempt from the
25    provisions of Section 2-70.
26        (40) Beginning January 1, 2010 and continuing through

 

 

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1    December 31, 2024, materials, parts, equipment,
2    components, and furnishings incorporated into or upon an
3    aircraft as part of the modification, refurbishment,
4    completion, replacement, repair, or maintenance of the
5    aircraft. This exemption includes consumable supplies used
6    in the modification, refurbishment, completion,
7    replacement, repair, and maintenance of aircraft, but
8    excludes any materials, parts, equipment, components, and
9    consumable supplies used in the modification, replacement,
10    repair, and maintenance of aircraft engines or power
11    plants, whether such engines or power plants are installed
12    or uninstalled upon any such aircraft. "Consumable
13    supplies" include, but are not limited to, adhesive, tape,
14    sandpaper, general purpose lubricants, cleaning solution,
15    latex gloves, and protective films. This exemption applies
16    only to the sale of qualifying tangible personal property
17    to persons who modify, refurbish, complete, replace, or
18    maintain an aircraft and who (i) hold an Air Agency
19    Certificate and are empowered to operate an approved
20    repair station by the Federal Aviation Administration,
21    (ii) have a Class IV Rating, and (iii) conduct operations
22    in accordance with Part 145 of the Federal Aviation
23    Regulations. The exemption does not include aircraft
24    operated by a commercial air carrier providing scheduled
25    passenger air service pursuant to authority issued under
26    Part 121 or Part 129 of the Federal Aviation Regulations.

 

 

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1    The changes made to this paragraph (40) by Public Act
2    98-534 are declarative of existing law. It is the intent
3    of the General Assembly that the exemption under this
4    paragraph (40) applies continuously from January 1, 2010
5    through December 31, 2024; however, no claim for credit or
6    refund is allowed for taxes paid as a result of the
7    disallowance of this exemption on or after January 1, 2015
8    and prior to February 5, 2020 (the effective date of
9    Public Act 101-629) this amendatory Act of the 101st
10    General Assembly.
11        (41) Tangible personal property sold to a
12    public-facilities corporation, as described in Section
13    11-65-10 of the Illinois Municipal Code, for purposes of
14    constructing or furnishing a municipal convention hall,
15    but only if the legal title to the municipal convention
16    hall is transferred to the municipality without any
17    further consideration by or on behalf of the municipality
18    at the time of the completion of the municipal convention
19    hall or upon the retirement or redemption of any bonds or
20    other debt instruments issued by the public-facilities
21    corporation in connection with the development of the
22    municipal convention hall. This exemption includes
23    existing public-facilities corporations as provided in
24    Section 11-65-25 of the Illinois Municipal Code. This
25    paragraph is exempt from the provisions of Section 2-70.
26        (42) Beginning January 1, 2017 and through December

 

 

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1    31, 2026, menstrual pads, tampons, and menstrual cups.
2        (43) Merchandise that is subject to the Rental
3    Purchase Agreement Occupation and Use Tax. The purchaser
4    must certify that the item is purchased to be rented
5    subject to a rental purchase agreement, as defined in the
6    Rental Purchase Agreement Act, and provide proof of
7    registration under the Rental Purchase Agreement
8    Occupation and Use Tax Act. This paragraph is exempt from
9    the provisions of Section 2-70.
10        (44) Qualified tangible personal property used in the
11    construction or operation of a data center that has been
12    granted a certificate of exemption by the Department of
13    Commerce and Economic Opportunity, whether that tangible
14    personal property is purchased by the owner, operator, or
15    tenant of the data center or by a contractor or
16    subcontractor of the owner, operator, or tenant. Data
17    centers that would have qualified for a certificate of
18    exemption prior to January 1, 2020 had Public Act 101-31
19    this amendatory Act of the 101st General Assembly been in
20    effect, may apply for and obtain an exemption for
21    subsequent purchases of computer equipment or enabling
22    software purchased or leased to upgrade, supplement, or
23    replace computer equipment or enabling software purchased
24    or leased in the original investment that would have
25    qualified.
26        The Department of Commerce and Economic Opportunity

 

 

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

 

 

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1        qualified tangible personal property to generate,
2        transform, transmit, distribute, or manage electricity
3        necessary to operate qualified tangible personal
4        property; and all other tangible personal property
5        that is essential to the operations of a computer data
6        center. The term "qualified tangible personal
7        property" also includes building materials physically
8        incorporated into the qualifying data center. To
9        document the exemption allowed under this Section, the
10        retailer must obtain from the purchaser a copy of the
11        certificate of eligibility issued by the Department of
12        Commerce and Economic Opportunity.
13        This item (44) is exempt from the provisions of
14    Section 2-70.
15        (45) Beginning January 1, 2020 and through December
16    31, 2020, sales of tangible personal property made by a
17    marketplace seller over a marketplace for which tax is due
18    under this Act but for which use tax has been collected and
19    remitted to the Department by a marketplace facilitator
20    under Section 2d of the Use Tax Act are exempt from tax
21    under this Act. A marketplace seller claiming this
22    exemption shall maintain books and records demonstrating
23    that the use tax on such sales has been collected and
24    remitted by a marketplace facilitator. Marketplace sellers
25    that have properly remitted tax under this Act on such
26    sales may file a claim for credit as provided in Section 6

 

 

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1    of this Act. No claim is allowed, however, for such taxes
2    for which a credit or refund has been issued to the
3    marketplace facilitator under the Use Tax Act, or for
4    which the marketplace facilitator has filed a claim for
5    credit or refund under the Use Tax Act.
6        (46) Beginning July 1, 2022, breast pumps, breast pump
7    collection and storage supplies, and breast pump kits.
8    This item (46) is exempt from the provisions of Section
9    2-70. As used in this item (46):
10        "Breast pump" means an electrically controlled or
11    manually controlled pump device designed or marketed to be
12    used to express milk from a human breast during lactation,
13    including the pump device and any battery, AC adapter, or
14    other power supply unit that is used to power the pump
15    device and is packaged and sold with the pump device at the
16    time of sale.
17        "Breast pump collection and storage supplies" means
18    items of tangible personal property designed or marketed
19    to be used in conjunction with a breast pump to collect
20    milk expressed from a human breast and to store collected
21    milk until it is ready for consumption.
22        "Breast pump collection and storage supplies"
23    includes, but is not limited to: breast shields and breast
24    shield connectors; breast pump tubes and tubing adapters;
25    breast pump valves and membranes; backflow protectors and
26    backflow protector adaptors; bottles and bottle caps

 

 

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1    specific to the operation of the breast pump; and breast
2    milk storage bags.
3        "Breast pump collection and storage supplies" does not
4    include: (1) bottles and bottle caps not specific to the
5    operation of the breast pump; (2) breast pump travel bags
6    and other similar carrying accessories, including ice
7    packs, labels, and other similar products; (3) breast pump
8    cleaning supplies; (4) nursing bras, bra pads, breast
9    shells, and other similar products; and (5) creams,
10    ointments, and other similar products that relieve
11    breastfeeding-related symptoms or conditions of the
12    breasts or nipples, unless sold as part of a breast pump
13    kit that is pre-packaged by the breast pump manufacturer
14    or distributor.
15        "Breast pump kit" means a kit that: (1) contains no
16    more than a breast pump, breast pump collection and
17    storage supplies, a rechargeable battery for operating the
18    breast pump, a breastmilk cooler, bottle stands, ice
19    packs, and a breast pump carrying case; and (2) is
20    pre-packaged as a breast pump kit by the breast pump
21    manufacturer or distributor.
22        (47) (46) Tangible personal property sold by or on
23    behalf of the State Treasurer pursuant to the Revised
24    Uniform Unclaimed Property Act. This item (47) (46) is
25    exempt from the provisions of Section 2-70.
26(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;

 

 

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1101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
28-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
3102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
4eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.