Illinois General Assembly - Full Text of HB4234
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Full Text of HB4234  102nd General Assembly

HB4234 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4234

 

Introduced 1/5/2022, by Rep. Barbara Hernandez - Katie Stuart, Anne Stava-Murray, Terra Costa Howard, Michael Halpin, et al.

 

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. Provides that, beginning on July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits are exempt from the taxes imposed under those Acts. Effective immediately.


LRB102 21422 HLH 30538 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4234LRB102 21422 HLH 30538 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, 2023, 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

 

 

HB4234- 18 -LRB102 21422 HLH 30538 b

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 the effective date of this amendatory Act of the
6101st 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.
13    As used in this item (41), "breast pump" means an
14electrically or manually-controlled pump device designed or
15marketed to be used to express milk from a human breast during
16lactation, including the pump device and any battery, AC
17adapter, or other power supply unit packaged and sold with the
18pump device at the time of sale to power the pump device.
19    "Breast pump collection and storage supplies" means items
20of tangible personal property designed or marketed to be used
21in conjunction with a breast pump to collect milk expressed
22from a human breast and to store collected milk until it is
23ready for consumption. "Breast pump collection and storage
24supplies" includes, but is not limited to: breast shields and
25breast shield connectors; breast pump tubes and tubing
26adapters; breast pump valves and membranes; backflow

 

 

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1protectors and backflow protector adaptors; bottles and bottle
2caps specific to the operation of the breast pump; breast milk
3storage bags; and other items that may be useful to initiate,
4support, or sustain breast-feeding using a breast pump during
5lactation that may be sold separately but are generally sold
6as part of a breast pump kit.
7    "Breast pump collection and storage supplies" does not
8include: (1) bottles and bottle caps not specific to the
9operation of the breast pump, (2) breast pump travel bags and
10other similar carrying accessories, including ice packs,
11labels, and other similar products; (3) breast pump cleaning
12supplies; (4) nursing bras, bra pads, breast shells, and other
13similar products; and (5) creams, ointments, and other similar
14products that relieve breastfeeding-related symptoms or
15conditions of the breasts or nipples, unless sold as part of a
16breast pump kit pre-packaged by the breast pump manufacturer
17or distributor.
18    "Breast pump kit" means a kit that contains a breast pump
19and breast pump collection and storage supplies or other
20taxable items of tangible personal property that may be useful
21to initiate, support, or sustain breastfeeding using a breast
22pump during lactation, so long as the other taxable items of
23tangible personal property sold with the breast pump kit at
24the time of sale are less than 10% of the total sales price of
25the breast pump kit.
26(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;

 

 

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1101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
26-17-21.)
 
3    Section 10. The Service Use Tax Act is amended by changing
4Section 3-5 as follows:
 
5    (35 ILCS 110/3-5)
6    Sec. 3-5. Exemptions. Use of the following tangible
7personal property is exempt from the tax imposed by this Act:
8    (1) Personal property purchased from a corporation,
9society, association, foundation, institution, or
10organization, other than a limited liability company, that is
11organized and operated as a not-for-profit service enterprise
12for the benefit of persons 65 years of age or older if the
13personal property was not purchased by the enterprise for the
14purpose of resale by the enterprise.
15    (2) Personal property purchased by a non-profit Illinois
16county fair association for use in conducting, operating, or
17promoting the county fair.
18    (3) Personal property purchased by a not-for-profit arts
19or cultural organization that establishes, by proof required
20by the Department by rule, that it has received an exemption
21under Section 501(c)(3) of the Internal Revenue Code and that
22is organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

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1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after July 1, 2001 (the
5effective date of Public Act 92-35), however, an entity
6otherwise eligible for this exemption shall not make tax-free
7purchases unless it has an active identification number issued
8by the Department.
9    (4) Legal tender, currency, medallions, or gold or silver
10coinage issued by the State of Illinois, the government of the
11United States of America, or the government of any foreign
12country, and bullion.
13    (5) Until July 1, 2003 and beginning again on September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new
16and used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product. Beginning on
22July 1, 2017, graphic arts machinery and equipment is included
23in the manufacturing and assembling machinery and equipment
24exemption under Section 2 of this Act.
25    (6) Personal property purchased from a teacher-sponsored
26student organization affiliated with an elementary or

 

 

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

 

 

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1software, global positioning and mapping systems, and other
2such equipment.
3    Farm machinery and equipment also includes computers,
4sensors, software, and related equipment used primarily in the
5computer-assisted operation of production agriculture
6facilities, equipment, and activities such as, but not limited
7to, the collection, monitoring, and correlation of animal and
8crop data for the purpose of formulating animal diets and
9agricultural chemicals. This item (7) is exempt from the
10provisions of Section 3-75.
11    (8) Until June 30, 2013, fuel and petroleum products sold
12to or used by an air common carrier, certified by the carrier
13to be used for consumption, shipment, or storage in the
14conduct of its business as an air common carrier, for a flight
15destined for or returning from a location or locations outside
16the United States without regard to previous or subsequent
17domestic stopovers.
18    Beginning July 1, 2013, fuel and petroleum products sold
19to or used by an air carrier, certified by the carrier to be
20used for consumption, shipment, or storage in the conduct of
21its business as an air common carrier, for a flight that (i) is
22engaged in foreign trade or is engaged in trade between the
23United States and any of its possessions and (ii) transports
24at least one individual or package for hire from the city of
25origination to the city of final destination on the same
26aircraft, without regard to a change in the flight number of

 

 

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

 

 

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1    (12) Until July 1, 2023, coal and aggregate exploration,
2mining, off-highway hauling, processing, maintenance, and
3reclamation equipment, including replacement parts and
4equipment, and including equipment purchased for lease, but
5excluding motor vehicles required to be registered under the
6Illinois Vehicle Code. The changes made to this Section by
7Public Act 97-767 apply on and after July 1, 2003, but no claim
8for credit or refund is allowed on or after August 16, 2013
9(the effective date of Public Act 98-456) for such taxes paid
10during the period beginning July 1, 2003 and ending on August
1116, 2013 (the effective date of Public Act 98-456).
12    (13) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (14) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (14) is exempt from the
20provisions of Section 3-75, and the exemption provided for
21under this item (14) applies for all periods beginning May 30,
221995, but no claim for credit or refund is allowed on or after
23January 1, 2008 (the effective date of Public Act 95-88) for
24such taxes paid during the period beginning May 30, 2000 and
25ending on January 1, 2008 (the effective date of Public Act
2695-88).

 

 

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1    (15) Computers and communications equipment utilized for
2any hospital purpose and equipment used in the diagnosis,
3analysis, or treatment of hospital patients purchased by a
4lessor who leases the equipment, under a lease of one year or
5longer executed or in effect at the time the lessor would
6otherwise be subject to the tax imposed by this Act, to a
7hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the equipment is leased
10in a manner that does not qualify for this exemption or is used
11in any other non-exempt manner, the lessor shall be liable for
12the tax imposed under this Act or the 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 Use Tax Act, as the case may be, if the tax has not
18been paid by the lessor. If a lessor improperly collects any
19such amount from the lessee, the lessee shall have a legal
20right to claim a refund of that amount from the lessor. If,
21however, that amount is not refunded to the lessee for any
22reason, the lessor is liable to pay that amount to the
23Department.
24    (16) Personal property purchased by a lessor who leases
25the property, under a lease of one year or longer executed or
26in effect at the time the lessor would otherwise be subject to

 

 

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

 

 

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1who reside within the declared disaster area.
2    (18) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in
5the performance of infrastructure repairs in this State,
6including but not limited to municipal roads and streets,
7access roads, bridges, sidewalks, waste disposal systems,
8water and sewer line extensions, water distribution and
9purification facilities, storm water drainage and retention
10facilities, and sewage treatment facilities, resulting from a
11State or federally declared disaster in Illinois or bordering
12Illinois when such repairs are initiated on facilities located
13in the declared disaster area within 6 months after the
14disaster.
15    (19) Beginning July 1, 1999, game or game birds purchased
16at a "game breeding and hunting preserve area" as that term is
17used in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-75.
19    (20) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the
23Department to be organized and operated exclusively for
24educational purposes. For purposes of this exemption, "a
25corporation, limited liability company, society, association,
26foundation, or institution organized and operated exclusively

 

 

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1for educational purposes" means all tax-supported public
2schools, private schools that offer systematic instruction in
3useful branches of learning by methods common to public
4schools and that compare favorably in their scope and
5intensity with the course of study presented in tax-supported
6schools, and vocational or technical schools or institutes
7organized and operated exclusively to provide a course of
8study of not less than 6 weeks duration and designed to prepare
9individuals to follow a trade or to pursue a manual,
10technical, mechanical, industrial, business, or commercial
11occupation.
12    (21) Beginning January 1, 2000, personal property,
13including food, purchased through fundraising events for the
14benefit of a public or private elementary or secondary school,
15a group of those schools, or one or more school districts if
16the events are sponsored by an entity recognized by the school
17district that consists primarily of volunteers and includes
18parents and teachers of the school children. This paragraph
19does not apply to fundraising events (i) for the benefit of
20private home instruction or (ii) for which the fundraising
21entity purchases the personal property sold at the events from
22another individual or entity that sold the property for the
23purpose of resale by the fundraising entity and that profits
24from the sale to the fundraising entity. This paragraph is
25exempt from the provisions of Section 3-75.
26    (22) Beginning January 1, 2000 and through December 31,

 

 

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12001, new or used automatic vending machines that prepare and
2serve hot food and beverages, including coffee, soup, and
3other items, and replacement parts for these machines.
4Beginning January 1, 2002 and through June 30, 2003, machines
5and parts for machines used in commercial, coin-operated
6amusement and vending business if a use or occupation tax is
7paid on the gross receipts derived from the use of the
8commercial, coin-operated amusement and vending machines. This
9paragraph is exempt from the provisions of Section 3-75.
10    (23) Beginning August 23, 2001 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages,
13soft drinks, and food that has been prepared for immediate
14consumption) and prescription and nonprescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act, the MC/DD Act, or the
22Specialized Mental Health Rehabilitation Act of 2013.
23    (24) Beginning on August 2, 2001 (the effective date of
24Public Act 92-227), computers and communications equipment
25utilized for any hospital purpose and equipment used in the
26diagnosis, analysis, or treatment of hospital patients

 

 

HB4234- 34 -LRB102 21422 HLH 30538 b

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

 

 

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1that has been issued an active tax exemption identification
2number by the Department under Section 1g of the Retailers'
3Occupation Tax Act. If the property is leased in a manner that
4does not qualify for this exemption or is used in any other
5nonexempt manner, the lessor shall be liable for the tax
6imposed under this Act or the Use Tax Act, as the case may be,
7based on the fair market value of the property at the time the
8nonqualifying use occurs. No lessor shall collect or attempt
9to collect an amount (however designated) that purports to
10reimburse that lessor for the tax imposed by this Act or the
11Use Tax Act, as the case may be, if the tax has not been paid
12by the lessor. If a lessor improperly collects any such amount
13from the lessee, the lessee shall have a legal right to claim a
14refund of that amount from the lessor. If, however, that
15amount is not refunded to the lessee for any reason, the lessor
16is liable to pay that amount to the Department. This paragraph
17is exempt from the provisions of Section 3-75.
18    (26) 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 3-75.
25    (27) Beginning January 1, 2010 and continuing through
26December 31, 2024, materials, parts, equipment, components,

 

 

HB4234- 36 -LRB102 21422 HLH 30538 b

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 transferred incident to the modification,
16refurbishment, completion, replacement, repair, or maintenance
17of aircraft by persons who (i) hold an Air Agency Certificate
18and are empowered to operate an approved repair station by the
19Federal Aviation Administration, (ii) have a Class IV Rating,
20and (iii) conduct operations in accordance with Part 145 of
21the Federal Aviation Regulations. The exemption does not
22include aircraft operated by a commercial air carrier
23providing scheduled passenger air service pursuant to
24authority issued under Part 121 or Part 129 of the Federal
25Aviation Regulations. The changes made to this paragraph (27)
26by Public Act 98-534 are declarative of existing law. It is the

 

 

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1intent of the General Assembly that the exemption under this
2paragraph (27) applies continuously from January 1, 2010
3through December 31, 2024; however, no claim for credit or
4refund is allowed for taxes paid as a result of the
5disallowance of this exemption on or after January 1, 2015 and
6prior to the effective date of this amendatory Act of the 101st
7General Assembly.
8    (28) Tangible personal property purchased by a
9public-facilities corporation, as described in Section
1011-65-10 of the Illinois Municipal Code, for purposes of
11constructing or furnishing a municipal convention hall, but
12only if the legal title to the municipal convention hall is
13transferred to the municipality without any further
14consideration by or on behalf of the municipality at the time
15of the completion of the municipal convention hall or upon the
16retirement or redemption of any bonds or other debt
17instruments issued by the public-facilities corporation in
18connection with the development of the municipal convention
19hall. This exemption includes existing public-facilities
20corporations as provided in Section 11-65-25 of the Illinois
21Municipal Code. This paragraph is exempt from the provisions
22of Section 3-75.
23    (29) Beginning January 1, 2017 and through December 31,
242026, menstrual pads, tampons, and menstrual cups.
25    (30) Tangible personal property transferred to a purchaser
26who is exempt from the tax imposed by this Act by operation of

 

 

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1federal law. This paragraph is exempt from the provisions of
2Section 3-75.
3    (31) Qualified tangible personal property used in the
4construction or operation of a data center that has been
5granted a certificate of exemption by the Department of
6Commerce and Economic Opportunity, whether that tangible
7personal property is purchased by the owner, operator, or
8tenant of the data center or by a contractor or subcontractor
9of the owner, operator, or tenant. Data centers that would
10have qualified for a certificate of exemption prior to January
111, 2020 had this amendatory Act of the 101st General Assembly
12been in effect, may apply for and obtain an exemption for
13subsequent purchases of computer equipment or enabling
14software purchased or leased to upgrade, supplement, or
15replace computer equipment or enabling software purchased or
16leased in the original investment that would have qualified.
17    The Department of Commerce and Economic Opportunity shall
18grant a certificate of exemption under this item (31) to
19qualified data centers as defined by Section 605-1025 of the
20Department of Commerce and Economic Opportunity Law of the
21Civil Administrative Code of Illinois.
22    For the purposes of this item (31):
23        "Data center" means a building or a series of
24    buildings rehabilitated or constructed to house working
25    servers in one physical location or multiple sites within
26    the State of Illinois.

 

 

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

 

 

HB4234- 40 -LRB102 21422 HLH 30538 b

1    Economic Opportunity.
2    This item (31) is exempt from the provisions of Section
33-75.
4    (32) Beginning July 1, 2022, breast pumps, breast pump
5collection and storage supplies, and breast pump kits. This
6item (32) is exempt from the provisions of Section 3-75.
7    As used in this item (32), "breast pump" means an
8electrically or manually-controlled pump device designed or
9marketed to be used to express milk from a human breast during
10lactation, including the pump device and any battery, AC
11adapter, or other power supply unit packaged and sold with the
12pump device at the time of sale to power the pump device.
13    "Breast pump collection and storage supplies" means items
14of tangible personal property designed or marketed to be used
15in conjunction with a breast pump to collect milk expressed
16from a human breast and to store collected milk until it is
17ready for consumption. "Breast pump collection and storage
18supplies" includes, but is not limited to: breast shields and
19breast shield connectors; breast pump tubes and tubing
20adapters; breast pump valves and membranes; backflow
21protectors and backflow protector adaptors; bottles and bottle
22caps specific to the operation of the breast pump; breast milk
23storage bags; and other items that may be useful to initiate,
24support, or sustain breast-feeding using a breast pump during
25lactation that may be sold separately but are generally sold
26as part of a breast pump kit.

 

 

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1    "Breast pump collection and storage supplies" does not
2include: (1) bottles and bottle caps not specific to the
3operation of the breast pump, (2) breast pump travel bags and
4other similar carrying accessories, including ice packs,
5labels, and other similar products; (3) breast pump cleaning
6supplies; (4) nursing bras, bra pads, breast shells, and other
7similar products; and (5) creams, ointments, and other similar
8products that relieve breastfeeding-related symptoms or
9conditions of the breasts or nipples, unless sold as part of a
10breast pump kit pre-packaged by the breast pump manufacturer
11or distributor.
12    "Breast pump kit" means a kit that contains a breast pump
13and breast pump collection and storage supplies or other
14taxable items of tangible personal property that may be useful
15to initiate, support, or sustain breastfeeding using a breast
16pump during lactation, so long as the other taxable items of
17tangible personal property sold with the breast pump kit at
18the time of sale are less than 10% of the total sales price of
19the breast pump kit.
20(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
21101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
22    Section 15. The Service Occupation Tax Act is amended by
23changing Section 3-5 as follows:
 
24    (35 ILCS 115/3-5)

 

 

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

 

 

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1by the Department.
2    (4) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6    (5) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new
9and used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product. Beginning on
15July 1, 2017, graphic arts machinery and equipment is included
16in the manufacturing and assembling machinery and equipment
17exemption under Section 2 of this Act.
18    (6) Personal property sold by a teacher-sponsored student
19organization affiliated with an elementary or secondary school
20located in Illinois.
21    (7) Farm machinery and equipment, both new and used,
22including that manufactured on special order, certified by the
23purchaser to be used primarily for production agriculture or
24State or federal agricultural programs, including individual
25replacement parts for the machinery and equipment, including
26machinery and equipment purchased for lease, and including

 

 

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

 

 

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

 

 

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1beverage function with respect to which the service charge is
2imposed.
3    (10) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of
5rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
6pipe and tubular goods, including casing and drill strings,
7(iii) pumps and pump-jack units, (iv) storage tanks and flow
8lines, (v) any individual replacement part for oil field
9exploration, drilling, and production equipment, and (vi)
10machinery and equipment purchased for lease; but excluding
11motor vehicles required to be registered under the Illinois
12Vehicle Code.
13    (11) Photoprocessing machinery and equipment, including
14repair and replacement parts, both new and used, including
15that manufactured on special order, certified by the purchaser
16to be used primarily for photoprocessing, and including
17photoprocessing machinery and equipment purchased for lease.
18    (12) Until July 1, 2023, coal and aggregate exploration,
19mining, off-highway hauling, processing, maintenance, and
20reclamation equipment, including replacement parts and
21equipment, and including equipment purchased for lease, but
22excluding motor vehicles required to be registered under the
23Illinois Vehicle Code. The changes made to this Section by
24Public Act 97-767 apply on and after July 1, 2003, but no claim
25for credit or refund is allowed on or after August 16, 2013
26(the effective date of Public Act 98-456) for such taxes paid

 

 

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1during the period beginning July 1, 2003 and ending on August
216, 2013 (the effective date of Public Act 98-456).
3    (13) Beginning January 1, 1992 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages,
6soft drinks and food that has been prepared for immediate
7consumption) and prescription and non-prescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (14) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (15) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (15) is exempt from the
24provisions of Section 3-55, and the exemption provided for
25under this item (15) applies for all periods beginning May 30,
261995, but no claim for credit or refund is allowed on or after

 

 

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1January 1, 2008 (the effective date of Public Act 95-88) for
2such taxes paid during the period beginning May 30, 2000 and
3ending on January 1, 2008 (the effective date of Public Act
495-88).
5    (16) Computers and communications equipment utilized for
6any hospital purpose and equipment used in the diagnosis,
7analysis, or treatment of hospital patients sold to a lessor
8who leases the equipment, under a lease of one year or longer
9executed or in effect at the time of the purchase, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act.
13    (17) Personal property sold to a lessor who leases the
14property, under a lease of one year or longer executed or in
15effect at the time of the purchase, to a governmental body that
16has been issued an active tax exemption identification number
17by the Department under Section 1g of the Retailers'
18Occupation Tax Act.
19    (18) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated
22for disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (19) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in
6the performance of infrastructure repairs in this State,
7including but not limited to municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (20) Beginning July 1, 1999, game or game birds sold at a
17"game breeding and hunting preserve area" as that term is used
18in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-55.
20    (21) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

HB4234- 50 -LRB102 21422 HLH 30538 b

1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (22) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-55.

 

 

HB4234- 51 -LRB102 21422 HLH 30538 b

1    (23) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-55.
11    (24) Beginning on August 2, 2001 (the effective date of
12Public Act 92-227), computers and communications equipment
13utilized for any hospital purpose and equipment used in the
14diagnosis, analysis, or treatment of hospital patients sold to
15a lessor who leases the equipment, under a lease of one year or
16longer executed or in effect at the time of the purchase, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. This paragraph is exempt
20from the provisions of Section 3-55.
21    (25) Beginning on August 2, 2001 (the effective date of
22Public Act 92-227), personal property sold to a lessor who
23leases the property, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

HB4234- 52 -LRB102 21422 HLH 30538 b

1the Retailers' Occupation Tax Act. This paragraph is exempt
2from the provisions of Section 3-55.
3    (26) Beginning on January 1, 2002 and through June 30,
42016, tangible personal property purchased from an Illinois
5retailer by a taxpayer engaged in centralized purchasing
6activities in Illinois who will, upon receipt of the property
7in Illinois, temporarily store the property in Illinois (i)
8for the purpose of subsequently transporting it outside this
9State for use or consumption thereafter solely outside this
10State or (ii) for the purpose of being processed, fabricated,
11or manufactured into, attached to, or incorporated into other
12tangible personal property to be transported outside this
13State and thereafter used or consumed solely outside this
14State. The Director of Revenue shall, pursuant to rules
15adopted in accordance with the Illinois Administrative
16Procedure Act, issue a permit to any taxpayer in good standing
17with the Department who is eligible for the exemption under
18this paragraph (26). The permit issued under this paragraph
19(26) shall authorize the holder, to the extent and in the
20manner specified in the rules adopted under this Act, to
21purchase tangible personal property from a retailer exempt
22from the taxes imposed by this Act. Taxpayers shall maintain
23all necessary books and records to substantiate the use and
24consumption of all such tangible personal property outside of
25the State of Illinois.
26    (27) Beginning January 1, 2008, tangible personal property

 

 

HB4234- 53 -LRB102 21422 HLH 30538 b

1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued
5under Title IV of the Environmental Protection Act. This
6paragraph is exempt from the provisions of Section 3-55.
7    (28) Tangible personal property sold to 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 3-55.
22    (29) Beginning January 1, 2010 and continuing through
23December 31, 2024, materials, parts, equipment, components,
24and furnishings incorporated into or upon an aircraft as part
25of the modification, refurbishment, completion, replacement,
26repair, or maintenance of the aircraft. This exemption

 

 

HB4234- 54 -LRB102 21422 HLH 30538 b

1includes consumable supplies used in the modification,
2refurbishment, completion, replacement, repair, and
3maintenance of aircraft, but excludes any materials, parts,
4equipment, components, and consumable supplies used in the
5modification, replacement, repair, and maintenance of aircraft
6engines or power plants, whether such engines or power plants
7are installed or uninstalled upon any such aircraft.
8"Consumable supplies" include, but are not limited to,
9adhesive, tape, sandpaper, general purpose lubricants,
10cleaning solution, latex gloves, and protective films. This
11exemption applies only to the transfer of qualifying tangible
12personal property incident to the modification, refurbishment,
13completion, replacement, repair, or maintenance of an aircraft
14by persons who (i) hold an Air Agency Certificate and are
15empowered to operate an approved repair station by the Federal
16Aviation Administration, (ii) have a Class IV Rating, and
17(iii) conduct operations in accordance with Part 145 of the
18Federal Aviation Regulations. The exemption does not include
19aircraft operated by a commercial air carrier providing
20scheduled passenger air service pursuant to authority issued
21under Part 121 or Part 129 of the Federal Aviation
22Regulations. The changes made to this paragraph (29) by Public
23Act 98-534 are declarative of existing law. It is the intent of
24the General Assembly that the exemption under this paragraph
25(29) applies continuously from January 1, 2010 through
26December 31, 2024; however, no claim for credit or refund is

 

 

HB4234- 55 -LRB102 21422 HLH 30538 b

1allowed for taxes paid as a result of the disallowance of this
2exemption on or after January 1, 2015 and prior to the
3effective date of this amendatory Act of the 101st General
4Assembly.
5    (30) Beginning January 1, 2017 and through December 31,
62026, menstrual pads, tampons, and menstrual cups.
7    (31) Tangible personal property transferred to a purchaser
8who is exempt from tax by operation of federal law. This
9paragraph is exempt from the provisions of Section 3-55.
10    (32) Qualified tangible personal property used in the
11construction or operation of a data center that has been
12granted a certificate of exemption by the Department of
13Commerce and Economic Opportunity, whether that tangible
14personal property is purchased by the owner, operator, or
15tenant of the data center or by a contractor or subcontractor
16of the owner, operator, or tenant. Data centers that would
17have qualified for a certificate of exemption prior to January
181, 2020 had this amendatory Act of the 101st General Assembly
19been in effect, may apply for and obtain an exemption for
20subsequent purchases of computer equipment or enabling
21software purchased or leased to upgrade, supplement, or
22replace computer equipment or enabling software purchased or
23leased in the original investment that would have qualified.
24    The Department of Commerce and Economic Opportunity shall
25grant a certificate of exemption under this item (32) to
26qualified data centers as defined by Section 605-1025 of the

 

 

HB4234- 56 -LRB102 21422 HLH 30538 b

1Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3    For the purposes of this item (32):
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

 

 

HB4234- 57 -LRB102 21422 HLH 30538 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 (32) is exempt from the provisions of Section
103-55.
11    (33) Beginning July 1, 2022, breast pumps, breast pump
12collection and storage supplies, and breast pump kits. This
13item (33) is exempt from the provisions of Section 3-55.
14    As used in this item (33), "breast pump" means an
15electrically or manually-controlled pump device designed or
16marketed to be used to express milk from a human breast during
17lactation, including the pump device and any battery, AC
18adapter, or other power supply unit packaged and sold with the
19pump device at the time of sale to power the pump device.
20    "Breast pump collection and storage supplies" means items
21of tangible personal property designed or marketed to be used
22in conjunction with a breast pump to collect milk expressed
23from a human breast and to store collected milk until it is
24ready for consumption. "Breast pump collection and storage
25supplies" includes, but is not limited to: breast shields and
26breast shield connectors; breast pump tubes and tubing

 

 

HB4234- 58 -LRB102 21422 HLH 30538 b

1adapters; breast pump valves and membranes; backflow
2protectors and backflow protector adaptors; bottles and bottle
3caps specific to the operation of the breast pump; breast milk
4storage bags; and other items that may be useful to initiate,
5support, or sustain breast-feeding using a breast pump during
6lactation that may be sold separately but are generally sold
7as part of a breast pump kit.
8    "Breast pump collection and storage supplies" does not
9include: (1) bottles and bottle caps not specific to the
10operation of the breast pump, (2) breast pump travel bags and
11other similar carrying accessories, including ice packs,
12labels, and other similar products; (3) breast pump cleaning
13supplies; (4) nursing bras, bra pads, breast shells, and other
14similar products; and (5) creams, ointments, and other similar
15products that relieve breastfeeding-related symptoms or
16conditions of the breasts or nipples, unless sold as part of a
17breast pump kit pre-packaged by the breast pump manufacturer
18or distributor.
19    "Breast pump kit" means a kit that contains a breast pump
20and breast pump collection and storage supplies or other
21taxable items of tangible personal property that may be useful
22to initiate, support, or sustain breastfeeding using a breast
23pump during lactation, so long as the other taxable items of
24tangible personal property sold with the breast pump kit at
25the time of sale are less than 10% of the total sales price of
26the breast pump kit.

 

 

HB4234- 59 -LRB102 21422 HLH 30538 b

1(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
2101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
3    Section 20. The Retailers' Occupation Tax Act is amended
4by changing Section 2-5 as follows:
 
5    (35 ILCS 120/2-5)
6    Sec. 2-5. Exemptions. Gross receipts from proceeds from
7the sale of the following tangible personal property are
8exempt from the tax imposed by this Act:
9        (1) Farm chemicals.
10        (2) Farm machinery and equipment, both new and used,
11    including that manufactured on special order, certified by
12    the purchaser to be used primarily for production
13    agriculture or State or federal agricultural programs,
14    including individual replacement parts for the machinery
15    and equipment, including machinery and equipment purchased
16    for lease, and including implements of husbandry defined
17    in Section 1-130 of the Illinois Vehicle Code, farm
18    machinery and agricultural chemical and fertilizer
19    spreaders, and nurse wagons required to be registered
20    under Section 3-809 of the Illinois Vehicle Code, but
21    excluding other motor vehicles required to be registered
22    under the Illinois Vehicle Code. Horticultural polyhouses
23    or hoop houses used for propagating, growing, or
24    overwintering plants shall be considered farm machinery

 

 

HB4234- 60 -LRB102 21422 HLH 30538 b

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

 

 

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

 

 

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

 

 

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1    a corporation, society, association, foundation, or
2    institution organized and operated exclusively for
3    charitable, religious, or educational purposes, or to a
4    not-for-profit corporation, society, association,
5    foundation, institution, or organization that has no
6    compensated officers or employees and that is organized
7    and operated primarily for the recreation of persons 55
8    years of age or older. A limited liability company may
9    qualify for the exemption under this paragraph only if the
10    limited liability company is organized and operated
11    exclusively for educational purposes. On and after July 1,
12    1987, however, no entity otherwise eligible for this
13    exemption shall make tax-free purchases unless it has an
14    active identification number issued by the Department.
15        (12) (Blank).
16        (12-5) On and after July 1, 2003 and through June 30,
17    2004, motor vehicles of the second division with a gross
18    vehicle weight in excess of 8,000 pounds that are subject
19    to the commercial distribution fee imposed under Section
20    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
21    2004 and through June 30, 2005, the use in this State of
22    motor vehicles of the second division: (i) with a gross
23    vehicle weight rating in excess of 8,000 pounds; (ii) that
24    are subject to the commercial distribution fee imposed
25    under Section 3-815.1 of the Illinois Vehicle Code; and
26    (iii) that are primarily used for commercial purposes.

 

 

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1    Through June 30, 2005, this exemption applies to repair
2    and replacement parts added after the initial purchase of
3    such a motor vehicle if that motor vehicle is used in a
4    manner that would qualify for the rolling stock exemption
5    otherwise provided for in this Act. For purposes of this
6    paragraph, "used for commercial purposes" means the
7    transportation of persons or property in furtherance of
8    any commercial or industrial enterprise whether for-hire
9    or not.
10        (13) Proceeds from sales to owners, lessors, or
11    shippers of tangible personal property that is utilized by
12    interstate carriers for hire for use as rolling stock
13    moving in interstate commerce and equipment operated by a
14    telecommunications provider, licensed as a common carrier
15    by the Federal Communications Commission, which is
16    permanently installed in or affixed to aircraft moving in
17    interstate commerce.
18        (14) Machinery and equipment that will be used by the
19    purchaser, or a lessee of the purchaser, primarily in the
20    process of manufacturing or assembling tangible personal
21    property for wholesale or retail sale or lease, whether
22    the sale or lease is made directly by the manufacturer or
23    by some other person, whether the materials used in the
24    process are owned by the manufacturer or some other
25    person, or whether the sale or lease is made apart from or
26    as an incident to the seller's engaging in the service

 

 

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1    occupation of producing machines, tools, dies, jigs,
2    patterns, gauges, or other similar items of no commercial
3    value on special order for a particular purchaser. The
4    exemption provided by this paragraph (14) does not include
5    machinery and equipment used in (i) the generation of
6    electricity for wholesale or retail sale; (ii) the
7    generation or treatment of natural or artificial gas for
8    wholesale or retail sale that is delivered to customers
9    through pipes, pipelines, or mains; or (iii) the treatment
10    of water for wholesale or retail sale that is delivered to
11    customers through pipes, pipelines, or mains. The
12    provisions of Public Act 98-583 are declaratory of
13    existing law as to the meaning and scope of this
14    exemption. Beginning on July 1, 2017, the exemption
15    provided by this paragraph (14) includes, but is not
16    limited to, graphic arts machinery and equipment, as
17    defined in paragraph (4) of this Section.
18        (15) Proceeds of mandatory service charges separately
19    stated on customers' bills for purchase and consumption of
20    food and beverages, to the extent that the proceeds of the
21    service charge are in fact turned over as tips or as a
22    substitute for tips to the employees who participate
23    directly in preparing, serving, hosting or cleaning up the
24    food or beverage function with respect to which the
25    service charge is imposed.
26        (16) Tangible personal property sold to a purchaser if

 

 

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1    the purchaser is exempt from use tax by operation of
2    federal law. This paragraph is exempt from the provisions
3    of Section 2-70.
4        (17) Tangible personal property sold to a common
5    carrier by rail or motor that receives the physical
6    possession of the property in Illinois and that transports
7    the property, or shares with another common carrier in the
8    transportation of the property, out of Illinois on a
9    standard uniform bill of lading showing the seller of the
10    property as the shipper or consignor of the property to a
11    destination outside Illinois, for use outside Illinois.
12        (18) Legal tender, currency, medallions, or gold or
13    silver coinage issued by the State of Illinois, the
14    government of the United States of America, or the
15    government of any foreign country, and bullion.
16        (19) Until July 1, 2003, oil field exploration,
17    drilling, and production equipment, including (i) rigs and
18    parts of rigs, rotary rigs, cable tool rigs, and workover
19    rigs, (ii) pipe and tubular goods, including casing and
20    drill strings, (iii) pumps and pump-jack units, (iv)
21    storage tanks and flow lines, (v) any individual
22    replacement part for oil field exploration, drilling, and
23    production equipment, and (vi) machinery and equipment
24    purchased for lease; but excluding motor vehicles required
25    to be registered under the Illinois Vehicle Code.
26        (20) Photoprocessing machinery and equipment,

 

 

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1    including repair and replacement parts, both new and used,
2    including that manufactured on special order, certified by
3    the purchaser to be used primarily for photoprocessing,
4    and including photoprocessing machinery and equipment
5    purchased for lease.
6        (21) Until July 1, 2023, coal and aggregate
7    exploration, mining, off-highway hauling, processing,
8    maintenance, and reclamation equipment, including
9    replacement parts and equipment, and including equipment
10    purchased for lease, but excluding motor vehicles required
11    to be registered under the Illinois Vehicle Code. The
12    changes made to this Section by Public Act 97-767 apply on
13    and after July 1, 2003, but no claim for credit or refund
14    is allowed on or after August 16, 2013 (the effective date
15    of Public Act 98-456) for such taxes paid during the
16    period beginning July 1, 2003 and ending on August 16,
17    2013 (the effective date of Public Act 98-456).
18        (22) Until June 30, 2013, fuel and petroleum products
19    sold to or used by an air carrier, certified by the carrier
20    to be used for consumption, shipment, or storage in the
21    conduct of its business as an air common carrier, for a
22    flight destined for or returning from a location or
23    locations outside the United States without regard to
24    previous or subsequent domestic stopovers.
25        Beginning July 1, 2013, fuel and petroleum products
26    sold to or used by an air carrier, certified by the carrier

 

 

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1    to be used for consumption, shipment, or storage in the
2    conduct of its business as an air common carrier, for a
3    flight that (i) is engaged in foreign trade or is engaged
4    in trade between the United States and any of its
5    possessions and (ii) transports at least one individual or
6    package for hire from the city of origination to the city
7    of final destination on the same aircraft, without regard
8    to a change in the flight number of that aircraft.
9        (23) A transaction in which the purchase order is
10    received by a florist who is located outside Illinois, but
11    who has a florist located in Illinois deliver the property
12    to the purchaser or the purchaser's donee in Illinois.
13        (24) Fuel consumed or used in the operation of ships,
14    barges, or vessels that are used primarily in or for the
15    transportation of property or the conveyance of persons
16    for hire on rivers bordering on this State if the fuel is
17    delivered by the seller to the purchaser's barge, ship, or
18    vessel while it is afloat upon that bordering river.
19        (25) Except as provided in item (25-5) of this
20    Section, a motor vehicle sold in this State to a
21    nonresident even though the motor vehicle is delivered to
22    the nonresident in this State, if the motor vehicle is not
23    to be titled in this State, and if a drive-away permit is
24    issued to the motor vehicle as provided in Section 3-603
25    of the Illinois Vehicle Code or if the nonresident
26    purchaser has vehicle registration plates to transfer to

 

 

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1    the motor vehicle upon returning to his or her home state.
2    The issuance of the drive-away permit or having the
3    out-of-state registration plates to be transferred is
4    prima facie evidence that the motor vehicle will not be
5    titled in this State.
6        (25-5) The exemption under item (25) does not apply if
7    the state in which the motor vehicle will be titled does
8    not allow a reciprocal exemption for a motor vehicle sold
9    and delivered in that state to an Illinois resident but
10    titled in Illinois. The tax collected under this Act on
11    the sale of a motor vehicle in this State to a resident of
12    another state that does not allow a reciprocal exemption
13    shall be imposed at a rate equal to the state's rate of tax
14    on taxable property in the state in which the purchaser is
15    a resident, except that the tax shall not exceed the tax
16    that would otherwise be imposed under this Act. At the
17    time of the sale, the purchaser shall execute a statement,
18    signed under penalty of perjury, of his or her intent to
19    title the vehicle in the state in which the purchaser is a
20    resident within 30 days after the sale and of the fact of
21    the payment to the State of Illinois of tax in an amount
22    equivalent to the state's rate of tax on taxable property
23    in his or her state of residence and shall submit the
24    statement to the appropriate tax collection agency in his
25    or her state of residence. In addition, the retailer must
26    retain a signed copy of the statement in his or her

 

 

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1    records. Nothing in this item shall be construed to
2    require the removal of the vehicle from this state
3    following the filing of an intent to title the vehicle in
4    the purchaser's state of residence if the purchaser titles
5    the vehicle in his or her state of residence within 30 days
6    after the date of sale. The tax collected under this Act in
7    accordance with this item (25-5) shall be proportionately
8    distributed as if the tax were collected at the 6.25%
9    general rate imposed under this Act.
10        (25-7) Beginning on July 1, 2007, no tax is imposed
11    under this Act on the sale of an aircraft, as defined in
12    Section 3 of the Illinois Aeronautics Act, if all of the
13    following conditions are met:
14            (1) the aircraft leaves this State within 15 days
15        after the later of either the issuance of the final
16        billing for the sale of the aircraft, or the
17        authorized approval for return to service, completion
18        of the maintenance record entry, and completion of the
19        test flight and ground test for inspection, as
20        required by 14 C.F.R. 91.407;
21            (2) the aircraft is not based or registered in
22        this State after the sale of the aircraft; and
23            (3) the seller retains in his or her books and
24        records and provides to the Department a signed and
25        dated certification from the purchaser, on a form
26        prescribed by the Department, certifying that the

 

 

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1        requirements of this item (25-7) are met. The
2        certificate must also include the name and address of
3        the purchaser, the address of the location where the
4        aircraft is to be titled or registered, the address of
5        the primary physical location of the aircraft, and
6        other information that the Department may reasonably
7        require.
8        For purposes of this item (25-7):
9        "Based in this State" means hangared, stored, or
10    otherwise used, excluding post-sale customizations as
11    defined in this Section, for 10 or more days in each
12    12-month period immediately following the date of the sale
13    of the aircraft.
14        "Registered in this State" means an aircraft
15    registered with the Department of Transportation,
16    Aeronautics Division, or titled or registered with the
17    Federal Aviation Administration to an address located in
18    this State.
19        This paragraph (25-7) is exempt from the provisions of
20    Section 2-70.
21        (26) Semen used for artificial insemination of
22    livestock for direct agricultural production.
23        (27) Horses, or interests in horses, registered with
24    and meeting the requirements of any of the Arabian Horse
25    Club Registry of America, Appaloosa Horse Club, American
26    Quarter Horse Association, United States Trotting

 

 

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1    Association, or Jockey Club, as appropriate, used for
2    purposes of breeding or racing for prizes. This item (27)
3    is exempt from the provisions of Section 2-70, and the
4    exemption provided for under this item (27) applies for
5    all periods beginning May 30, 1995, but no claim for
6    credit or refund is allowed on or after January 1, 2008
7    (the effective date of Public Act 95-88) for such taxes
8    paid during the period beginning May 30, 2000 and ending
9    on January 1, 2008 (the effective date of Public Act
10    95-88).
11        (28) Computers and communications equipment utilized
12    for any hospital purpose and equipment used in the
13    diagnosis, analysis, or treatment of hospital patients
14    sold to a lessor who leases the equipment, under a lease of
15    one year or longer executed or in effect at the time of the
16    purchase, to a hospital that has been issued an active tax
17    exemption identification number by the Department under
18    Section 1g of this Act.
19        (29) Personal property sold to a lessor who leases the
20    property, under a lease of one year or longer executed or
21    in effect at the time of the purchase, to a governmental
22    body that has been issued an active tax exemption
23    identification number by the Department under Section 1g
24    of this Act.
25        (30) Beginning with taxable years ending on or after
26    December 31, 1995 and ending with taxable years ending on

 

 

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

 

 

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

 

 

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1    of volunteers and includes parents and teachers of the
2    school children. This paragraph does not apply to
3    fundraising events (i) for the benefit of private home
4    instruction or (ii) for which the fundraising entity
5    purchases the personal property sold at the events from
6    another individual or entity that sold the property for
7    the purpose of resale by the fundraising entity and that
8    profits from the sale to the fundraising entity. This
9    paragraph is exempt from the provisions of Section 2-70.
10        (35) Beginning January 1, 2000 and through December
11    31, 2001, new or used automatic vending machines that
12    prepare and serve hot food and beverages, including
13    coffee, soup, and other items, and replacement parts for
14    these machines. Beginning January 1, 2002 and through June
15    30, 2003, machines and parts for machines used in
16    commercial, coin-operated amusement and vending business
17    if a use or occupation tax is paid on the gross receipts
18    derived from the use of the commercial, coin-operated
19    amusement and vending machines. This paragraph is exempt
20    from the provisions of Section 2-70.
21        (35-5) Beginning August 23, 2001 and through June 30,
22    2016, food for human consumption that is to be consumed
23    off the premises where it is sold (other than alcoholic
24    beverages, soft drinks, and food that has been prepared
25    for immediate consumption) and prescription and
26    nonprescription medicines, drugs, medical appliances, and

 

 

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1    insulin, urine testing materials, syringes, and needles
2    used by diabetics, for human use, when purchased for use
3    by a person receiving medical assistance under Article V
4    of the Illinois Public Aid Code who resides in a licensed
5    long-term care facility, as defined in the Nursing Home
6    Care Act, or a licensed facility as defined in the ID/DD
7    Community Care Act, the MC/DD Act, or the Specialized
8    Mental Health Rehabilitation Act of 2013.
9        (36) Beginning August 2, 2001, computers and
10    communications equipment utilized for any hospital purpose
11    and equipment used in the diagnosis, analysis, or
12    treatment of hospital patients sold to a lessor who leases
13    the equipment, under a lease of one year or longer
14    executed or in effect at the time of the purchase, to a
15    hospital that has been issued an active tax exemption
16    identification number by the Department under Section 1g
17    of this Act. This paragraph is exempt from the provisions
18    of Section 2-70.
19        (37) Beginning August 2, 2001, personal property sold
20    to a lessor who leases the property, under a lease of one
21    year or longer executed or in effect at the time of the
22    purchase, to a governmental body that has been issued an
23    active tax exemption identification number by the
24    Department under Section 1g of this Act. This paragraph is
25    exempt from the provisions of Section 2-70.
26        (38) Beginning on January 1, 2002 and through June 30,

 

 

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1    2016, tangible personal property purchased from an
2    Illinois retailer by a taxpayer engaged in centralized
3    purchasing activities in Illinois who will, upon receipt
4    of the property in Illinois, temporarily store the
5    property in Illinois (i) for the purpose of subsequently
6    transporting it outside this State for use or consumption
7    thereafter solely outside this State or (ii) for the
8    purpose of being processed, fabricated, or manufactured
9    into, attached to, or incorporated into other tangible
10    personal property to be transported outside this State and
11    thereafter used or consumed solely outside this State. The
12    Director of Revenue shall, pursuant to rules adopted in
13    accordance with the Illinois Administrative Procedure Act,
14    issue a permit to any taxpayer in good standing with the
15    Department who is eligible for the exemption under this
16    paragraph (38). The permit issued under this paragraph
17    (38) shall authorize the holder, to the extent and in the
18    manner specified in the rules adopted under this Act, to
19    purchase tangible personal property from a retailer exempt
20    from the taxes imposed by this Act. Taxpayers shall
21    maintain all necessary books and records to substantiate
22    the use and consumption of all such tangible personal
23    property outside of the State of Illinois.
24        (39) Beginning January 1, 2008, tangible personal
25    property used in the construction or maintenance of a
26    community water supply, as defined under Section 3.145 of

 

 

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1    the Environmental Protection Act, that is operated by a
2    not-for-profit corporation that holds a valid water supply
3    permit issued under Title IV of the Environmental
4    Protection Act. This paragraph is exempt from the
5    provisions of Section 2-70.
6        (40) Beginning January 1, 2010 and continuing through
7    December 31, 2024, materials, parts, equipment,
8    components, and furnishings incorporated into or upon an
9    aircraft as part of the modification, refurbishment,
10    completion, replacement, repair, or maintenance of the
11    aircraft. This exemption includes consumable supplies used
12    in the modification, refurbishment, completion,
13    replacement, repair, and maintenance of aircraft, but
14    excludes any materials, parts, equipment, components, and
15    consumable supplies used in the modification, replacement,
16    repair, and maintenance of aircraft engines or power
17    plants, whether such engines or power plants are installed
18    or uninstalled upon any such aircraft. "Consumable
19    supplies" include, but are not limited to, adhesive, tape,
20    sandpaper, general purpose lubricants, cleaning solution,
21    latex gloves, and protective films. This exemption applies
22    only to the sale of qualifying tangible personal property
23    to persons who modify, refurbish, complete, replace, or
24    maintain an aircraft and who (i) hold an Air Agency
25    Certificate and are empowered to operate an approved
26    repair station by the Federal Aviation Administration,

 

 

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1    (ii) have a Class IV Rating, and (iii) conduct operations
2    in accordance with Part 145 of the Federal Aviation
3    Regulations. The exemption does not include aircraft
4    operated by a commercial air carrier providing scheduled
5    passenger air service pursuant to authority issued under
6    Part 121 or Part 129 of the Federal Aviation Regulations.
7    The changes made to this paragraph (40) by Public Act
8    98-534 are declarative of existing law. It is the intent
9    of the General Assembly that the exemption under this
10    paragraph (40) applies continuously from January 1, 2010
11    through December 31, 2024; however, no claim for credit or
12    refund is allowed for taxes paid as a result of the
13    disallowance of this exemption on or after January 1, 2015
14    and prior to the effective date of this amendatory Act of
15    the 101st General Assembly.
16        (41) Tangible personal property sold to a
17    public-facilities corporation, as described in Section
18    11-65-10 of the Illinois Municipal Code, for purposes of
19    constructing or furnishing a municipal convention hall,
20    but only if the legal title to the municipal convention
21    hall is transferred to the municipality without any
22    further consideration by or on behalf of the municipality
23    at the time of the completion of the municipal convention
24    hall or upon the retirement or redemption of any bonds or
25    other debt instruments issued by the public-facilities
26    corporation in connection with the development of the

 

 

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1    municipal convention hall. This exemption includes
2    existing public-facilities corporations as provided in
3    Section 11-65-25 of the Illinois Municipal Code. This
4    paragraph is exempt from the provisions of Section 2-70.
5        (42) Beginning January 1, 2017, menstrual pads,
6    tampons, and menstrual cups.
7        (43) Merchandise that is subject to the Rental
8    Purchase Agreement Occupation and Use Tax. The purchaser
9    must certify that the item is purchased to be rented
10    subject to a rental purchase agreement, as defined in the
11    Rental Purchase Agreement Act, and provide proof of
12    registration under the Rental Purchase Agreement
13    Occupation and Use Tax Act. This paragraph is exempt from
14    the provisions of Section 2-70.
15        (44) Qualified tangible personal property used in the
16    construction or operation of a data center that has been
17    granted a certificate of exemption by the Department of
18    Commerce and Economic Opportunity, whether that tangible
19    personal property is purchased by the owner, operator, or
20    tenant of the data center or by a contractor or
21    subcontractor of the owner, operator, or tenant. Data
22    centers that would have qualified for a certificate of
23    exemption prior to January 1, 2020 had this amendatory Act
24    of the 101st General Assembly been in effect, may apply
25    for and obtain an exemption for subsequent purchases of
26    computer equipment or enabling software purchased or

 

 

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

 

 

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1        necessary to operate qualified tangible personal
2        property, including fixtures; and component parts of
3        any of the foregoing, including installation,
4        maintenance, repair, refurbishment, and replacement of
5        qualified tangible personal property to generate,
6        transform, transmit, distribute, or manage electricity
7        necessary to operate qualified tangible personal
8        property; and all other tangible personal property
9        that is essential to the operations of a computer data
10        center. The term "qualified tangible personal
11        property" also includes building materials physically
12        incorporated in to the qualifying data center. To
13        document the exemption allowed under this Section, the
14        retailer must obtain from the purchaser a copy of the
15        certificate of eligibility issued by the Department of
16        Commerce and Economic Opportunity.
17        This item (44) is exempt from the provisions of
18    Section 2-70.
19        (45) Beginning July 1, 2022, breast pumps, breast pump
20    collection and storage supplies, and breast pump kits.
21    This item (45) is exempt from the provisions of Section
22    2-70.
23        As used in this item (45), "breast pump" means an
24    electrically or manually-controlled pump device designed
25    or marketed to be used to express milk from a human breast
26    during lactation, including the pump device and any

 

 

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1    battery, AC adapter, or other power supply unit packaged
2    and sold with the pump device at the time of sale to power
3    the pump device.
4        "Breast pump collection and storage supplies" means
5    items of tangible personal property designed or marketed
6    to be used in conjunction with a breast pump to collect
7    milk expressed from a human breast and to store collected
8    milk until it is ready for consumption. "Breast pump
9    collection and storage supplies" includes, but is not
10    limited to: breast shields and breast shield connectors;
11    breast pump tubes and tubing adapters; breast pump valves
12    and membranes; backflow protectors and backflow protector
13    adaptors; bottles and bottle caps specific to the
14    operation of the breast pump; breast milk storage bags;
15    and other items that may be useful to initiate, support,
16    or sustain breast-feeding using a breast pump during
17    lactation that may be sold separately but are generally
18    sold as part of a breast pump kit.
19        "Breast pump collection and storage supplies" does not
20    include: (1) bottles and bottle caps not specific to the
21    operation of the breast pump, (2) breast pump travel bags
22    and other similar carrying accessories, including ice
23    packs, labels, and other similar products; (3) breast pump
24    cleaning supplies; (4) nursing bras, bra pads, breast
25    shells, and other similar products; and (5) creams,
26    ointments, and other similar products that relieve

 

 

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1    breastfeeding-related symptoms or conditions of the
2    breasts or nipples, unless sold as part of a breast pump
3    kit pre-packaged by the breast pump manufacturer or
4    distributor.
5        "Breast pump kit" means a kit that contains a breast
6    pump and breast pump collection and storage supplies or
7    other taxable items of tangible personal property that may
8    be useful to initiate, support, or sustain breastfeeding
9    using a breast pump during lactation, so long as the other
10    taxable items of tangible personal property sold with the
11    breast pump kit at the time of sale are less than 10% of
12    the total sales price of the breast pump kit.
13(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
14100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
158-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
16eff. 7-12-19; 101-629, eff. 2-5-20.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.