Illinois General Assembly - Full Text of HB0424
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Full Text of HB0424  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/8/2021, by Rep. Jonathan Carroll and Tony McCombie


35 ILCS 120/2-5

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

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HB0424LRB102 04059 HLH 14075 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 Retailers' Occupation Tax Act is amended by
5changing Section 2-5 as follows:
6    (35 ILCS 120/2-5)
7    Sec. 2-5. Exemptions. Gross receipts from proceeds from
8the sale of the following tangible personal property are
9exempt from the tax imposed by this Act:
10        (1) Farm chemicals.
11        (2) Farm machinery and equipment, both new and used,
12    including that manufactured on special order, certified by
13    the purchaser to be used primarily for production
14    agriculture or State or federal agricultural programs,
15    including individual replacement parts for the machinery
16    and equipment, including machinery and equipment purchased
17    for lease, and including implements of husbandry defined
18    in Section 1-130 of the Illinois Vehicle Code, farm
19    machinery and agricultural chemical and fertilizer
20    spreaders, and nurse wagons required to be registered
21    under Section 3-809 of the Illinois Vehicle Code, but
22    excluding other motor vehicles required to be registered
23    under the Illinois Vehicle Code. Horticultural polyhouses



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



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



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



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



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



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



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1    provided by this paragraph (14) includes, but is not
2    limited to, graphic arts machinery and equipment, as
3    defined in paragraph (4) of this Section.
4        (15) Proceeds of mandatory service charges separately
5    stated on customers' bills for purchase and consumption of
6    food and beverages, to the extent that the proceeds of the
7    service charge are in fact turned over as tips or as a
8    substitute for tips to the employees who participate
9    directly in preparing, serving, hosting or cleaning up the
10    food or beverage function with respect to which the
11    service charge is imposed.
12        (16) Tangible personal property sold to a purchaser if
13    the purchaser is exempt from use tax by operation of
14    federal law. This paragraph is exempt from the provisions
15    of Section 2-70.
16        (17) Tangible personal property sold to a common
17    carrier by rail or motor that receives the physical
18    possession of the property in Illinois and that transports
19    the property, or shares with another common carrier in the
20    transportation of the property, out of Illinois on a
21    standard uniform bill of lading showing the seller of the
22    property as the shipper or consignor of the property to a
23    destination outside Illinois, for use outside Illinois.
24        (18) Legal tender, currency, medallions, or gold or
25    silver coinage issued by the State of Illinois, the
26    government of the United States of America, or the



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



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



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



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1    a resident, except that the tax shall not exceed the tax
2    that would otherwise be imposed under this Act. At the
3    time of the sale, the purchaser shall execute a statement,
4    signed under penalty of perjury, of his or her intent to
5    title the vehicle in the state in which the purchaser is a
6    resident within 30 days after the sale and of the fact of
7    the payment to the State of Illinois of tax in an amount
8    equivalent to the state's rate of tax on taxable property
9    in his or her state of residence and shall submit the
10    statement to the appropriate tax collection agency in his
11    or her state of residence. In addition, the retailer must
12    retain a signed copy of the statement in his or her
13    records. Nothing in this item shall be construed to
14    require the removal of the vehicle from this state
15    following the filing of an intent to title the vehicle in
16    the purchaser's state of residence if the purchaser titles
17    the vehicle in his or her state of residence within 30 days
18    after the date of sale. The tax collected under this Act in
19    accordance with this item (25-5) shall be proportionately
20    distributed as if the tax were collected at the 6.25%
21    general rate imposed under this Act.
22        (25-7) Beginning on July 1, 2007, no tax is imposed
23    under this Act on the sale of an aircraft, as defined in
24    Section 3 of the Illinois Aeronautics Act, if all of the
25    following conditions are met:
26            (1) the aircraft leaves this State within 15 days



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



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



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



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



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



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1    30, 2003, machines and parts for machines used in
2    commercial, coin-operated amusement and vending business
3    if a use or occupation tax is paid on the gross receipts
4    derived from the use of the commercial, coin-operated
5    amusement and vending machines. This paragraph is exempt
6    from the provisions of Section 2-70.
7        (35-5) Beginning August 23, 2001 and through June 30,
8    2016, food for human consumption that is to be consumed
9    off the premises where it is sold (other than alcoholic
10    beverages, soft drinks, and food that has been prepared
11    for immediate consumption) and prescription and
12    nonprescription medicines, drugs, medical appliances, and
13    insulin, urine testing materials, syringes, and needles
14    used by diabetics, for human use, when purchased for use
15    by a person receiving medical assistance under Article V
16    of the Illinois Public Aid Code who resides in a licensed
17    long-term care facility, as defined in the Nursing Home
18    Care Act, or a licensed facility as defined in the ID/DD
19    Community Care Act, the MC/DD Act, or the Specialized
20    Mental Health Rehabilitation Act of 2013.
21        (36) Beginning August 2, 2001, computers and
22    communications equipment utilized for any hospital purpose
23    and equipment used in the diagnosis, analysis, or
24    treatment of hospital patients sold to a lessor who leases
25    the equipment, under a lease of one year or longer
26    executed or in effect at the time of the purchase, to a



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



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



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



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



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1        (44) Qualified tangible personal property used in the
2    construction or operation of a data center that has been
3    granted a certificate of exemption by the Department of
4    Commerce and Economic Opportunity, whether that tangible
5    personal property is purchased by the owner, operator, or
6    tenant of the data center or by a contractor or
7    subcontractor of the owner, operator, or tenant. Data
8    centers that would have qualified for a certificate of
9    exemption prior to January 1, 2020 had this amendatory Act
10    of the 101st General Assembly been in effect, may apply
11    for and obtain an exemption for subsequent purchases of
12    computer equipment or enabling software purchased or
13    leased to upgrade, supplement, or replace computer
14    equipment or enabling software purchased or leased in the
15    original investment that would have qualified.
16        The Department of Commerce and Economic Opportunity
17    shall grant a certificate of exemption under this item
18    (44) to qualified data centers as defined by Section
19    605-1025 of the Department of Commerce and Economic
20    Opportunity Law of the Civil Administrative Code of
21    Illinois.
22        For the purposes of this item (44):
23            "Data center" means a building or a series of
24        buildings rehabilitated or constructed to house
25        working servers in one physical location or multiple
26        sites within 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;
7        cabinets; telecommunications cabling infrastructure;
8        raised floor systems; peripheral components or
9        systems; software; mechanical, electrical, or plumbing
10        systems; battery systems; cooling systems and towers;
11        temperature control systems; other cabling; and other
12        data center infrastructure equipment and systems
13        necessary to operate qualified tangible personal
14        property, including fixtures; and component parts of
15        any of the foregoing, including installation,
16        maintenance, repair, refurbishment, and replacement of
17        qualified tangible personal property to generate,
18        transform, transmit, distribute, or manage electricity
19        necessary to operate qualified tangible personal
20        property; and all other tangible personal property
21        that is essential to the operations of a computer data
22        center. The term "qualified tangible personal
23        property" also includes building materials physically
24        incorporated in to the qualifying data center. To
25        document the exemption allowed under this Section, the
26        retailer must obtain from the purchaser a copy of the



HB0424- 25 -LRB102 04059 HLH 14075 b

1        certificate of eligibility issued by the Department of
2        Commerce and Economic Opportunity.
3        This item (44) is exempt from the provisions of
4    Section 2-70.
5(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
6100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
78-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
8eff. 7-12-19; 101-629, eff. 2-5-20.)