Full Text of HB1497 103rd General Assembly
HB1497sam004 103RD GENERAL ASSEMBLY | Sen. Christopher Belt Filed: 5/10/2023
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| 1 | | AMENDMENT TO HOUSE BILL 1497
| 2 | | AMENDMENT NO. ______. Amend House Bill 1497, AS AMENDED, | 3 | | immediately below the enacting clause, by inserting the | 4 | | following:
| 5 | | "Section 1.1. Short title. This Act may be cited as the | 6 | | Car-Sharing Use and Occupation Tax Act. | 7 | | Section 1.2. Definitions. As used in this Act: | 8 | | "Car-sharing agreement" has the meaning given to that term | 9 | | in the Car-Sharing Program Act. | 10 | | "Car-sharing price" means the consideration paid for the | 11 | | use of a shared vehicle pursuant to a car-sharing agreement, | 12 | | valued in money, whether received in money or otherwise, | 13 | | including cash credits, property, and services. The | 14 | | car-sharing price shall be determined without any deduction on | 15 | | account of the car-sharing program's liability under this Act | 16 | | or on account of separately stated charges for insurance or |
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| 1 | | recovery of refueling costs or other separately stated charges | 2 | | that are not for the use of a shared vehicle. | 3 | | "Car-sharing program" has the meaning given to that term | 4 | | in the Car-Sharing Program Act. | 5 | | "Department" means the Department of Revenue. | 6 | | "Gross receipts" means the total car-sharing price | 7 | | collected by the car-sharing program from car-sharing | 8 | | agreements executed in the State. | 9 | | "Peer-to-peer car sharing" has the meaning given to that | 10 | | term in the Car-Sharing Program Act. | 11 | | "Shared vehicle" has the meaning given to that term in the | 12 | | Car-Sharing Program Act. | 13 | | "Shared-vehicle driver" has the meaning given to that term | 14 | | in the Car-Sharing Program Act. | 15 | | "Shared-vehicle owner" has the meaning given to that term | 16 | | in the Car-Sharing Program Act. | 17 | | Section 1.3. Tax imposed; occupation tax. On and after | 18 | | January 1, 2024, a tax is imposed upon persons engaged in this | 19 | | State in the business of operating a car-sharing program at | 20 | | the rate of 5% of the gross receipts received from that | 21 | | business. The tax imposed under this Act does not apply if at | 22 | | least one of the parties to the car-sharing agreement is: | 23 | | (1) a governmental body; | 24 | | (2) a corporation, society, association, foundation or | 25 | | institution organized and operated exclusively for |
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| 1 | | charitable, religious, or educational purposes; or | 2 | | (3) a not for profit corporation, society, | 3 | | association, foundation, institution, or organization that | 4 | | has no compensated officers or employees and that is | 5 | | organized and operated primarily for the recreation of | 6 | | persons 55 years of age or older. | 7 | | Each car-sharing program that facilitates a car-sharing | 8 | | agreement in the State shall apply to the Department (upon a | 9 | | form prescribed and furnished by the Department) for a | 10 | | certificate of registration under this Act. The certificate of | 11 | | registration which is issued by the Department to a retailer | 12 | | under the Retailers' Occupation Tax Act shall permit the | 13 | | car-sharing program to engage in a business which is taxable | 14 | | under this Section without registering separately with the | 15 | | Department. | 16 | | The Department shall have full power to administer and | 17 | | enforce this Section, to collect all taxes and penalties due | 18 | | hereunder, to dispose of taxes and penalties so collected in | 19 | | the manner hereinafter provided, and to determine all rights | 20 | | to credit memoranda, arising on account of the erroneous | 21 | | payment of tax or penalty hereunder. In the administration of, | 22 | | and compliance with, this Section, the Department and persons | 23 | | who are subject to this Section shall have the same rights, | 24 | | remedies, privileges, immunities, powers and duties, and be | 25 | | subject to the same conditions, restrictions, limitations, | 26 | | penalties and definitions of terms, and employ the same modes |
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| 1 | | of procedure, as are prescribed in Sections 1, 1a, 2 through | 2 | | 2-65 (in respect to all provisions therein other than the | 3 | | State rate of tax), 2a, 2b, 2c, 3 (except provisions relating | 4 | | to transaction returns, electronic filing of returns, and | 5 | | quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, | 6 | | 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the | 7 | | Retailers' Occupation Tax Act and Section 3-7 of the Uniform | 8 | | Penalty and Interest Act as fully as if those provisions were | 9 | | set forth herein. | 10 | | Section 1.4. Tax imposed; use tax. | 11 | | (a) On and after January 1, 2024, a tax is imposed upon the | 12 | | privilege of using an automobile in this State if that use is | 13 | | subject to a car-sharing agreement. The tax is at the rate of | 14 | | 5% of the car-sharing price. The tax imposed under this Act | 15 | | does not apply if at least one of the parties to the | 16 | | car-sharing agreement is: | 17 | | (1) a governmental body; | 18 | | (2) a corporation, society, association, foundation or | 19 | | institution organized and operated exclusively for | 20 | | charitable, religious, or educational purposes; or | 21 | | (3) a not for profit corporation, society, | 22 | | association, foundation, institution, or organization that | 23 | | has no compensated officers or employees and that is | 24 | | organized and operated primarily for the recreation of | 25 | | persons 55 years of age or older. |
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| 1 | | (b) The tax imposed under this Section shall be collected | 2 | | from the shared vehicle driver by the car-sharing platform and | 3 | | remitted to the Department. | 4 | | (c) The tax imposed under this Section that is not paid to | 5 | | a pursuant to subsection (b) shall be paid to the Department | 6 | | directly by the shared vehicle driver. | 7 | | (d) The car-sharing platform shall collect the tax from | 8 | | shared vehicle drivers by adding the tax to the consideration | 9 | | paid for use of the shared vehicle, in the manner prescribed by | 10 | | the Department. The Department shall have the power to adopt | 11 | | rules for the adding of the tax by car-sharing programs by | 12 | | prescribing bracket systems for the purpose of enabling those | 13 | | car-sharing programs to add and collect, as far as | 14 | | practicable, the amount of the tax. | 15 | | (e) The Department shall have full power to administer and | 16 | | enforce this Section; to collect all taxes, penalties and | 17 | | interest due hereunder; to dispose of taxes, penalties and | 18 | | interest so collected in the manner hereinafter provided, and | 19 | | to determine all rights to credit memoranda or refunds arising | 20 | | on account of the erroneous payment of tax, penalty or | 21 | | interest hereunder. In the administration of, and compliance | 22 | | with, this Section, the Department and persons who are subject | 23 | | to this Section shall have the same rights, remedies, | 24 | | privileges, immunities, powers and duties, and be subject to | 25 | | the same conditions, restrictions, limitations, penalties and | 26 | | definitions of terms, and employ the same modes of procedure, |
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| 1 | | as are prescribed in Sections 2, 3 through 3-80, 4, 6, 7, 8, 9 | 2 | | (except provisions relating to transaction returns, electronic | 3 | | filing of returns, and quarter monthly payments), 10, 11, 12, | 4 | | 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax Act, and | 5 | | are not inconsistent with this Section, as fully as if those | 6 | | provisions were set forth herein. | 7 | | Section 1.5. Exceptions. The tax under this Act does not | 8 | | apply to the use of a shared vehicle if a tax has been paid | 9 | | with respect to that shared vehicle under the Use Tax Act, the | 10 | | Service Use Tax Act, the Service Occupation Tax Act, or the | 11 | | Retailers' Occupation Tax Act by the shared vehicle owner at | 12 | | the time the vehicle was purchased.
| 13 | | Section 1.6. Sunset of exemptions, credits, and | 14 | | deductions. The application of every exemption, credit, and | 15 | | deduction against tax imposed by this Act that becomes law | 16 | | after the effective date of this amendatory Act of 1994 shall | 17 | | be limited by a reasonable and appropriate sunset date. A | 18 | | taxpayer is not entitled to take the exemption, credit, or | 19 | | deduction beginning on the sunset date and thereafter. If a | 20 | | reasonable and appropriate sunset date is not specified in the | 21 | | Public Act that creates the exemption, credit, or deduction, a | 22 | | taxpayer shall not be entitled to take the exemption, credit, | 23 | | or deduction beginning 5 years after the effective date of the | 24 | | Public Act creating the exemption, credit, or deduction and |
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| 1 | | thereafter."; and | 2 | | immediately above Section 99, by inserting the following: | 3 | | Section 10. The Use Tax Act is amended by changing Section | 4 | | 3-5 as follows:
| 5 | | (35 ILCS 105/3-5)
| 6 | | Sec. 3-5. Exemptions. Use of the following tangible | 7 | | personal property is exempt from the tax imposed by this Act:
| 8 | | (1) Personal property purchased from a corporation, | 9 | | society, association,
foundation, institution, or | 10 | | organization, other than a limited liability
company, that is | 11 | | organized and operated as a not-for-profit service enterprise
| 12 | | for the benefit of persons 65 years of age or older if the | 13 | | personal property was not purchased by the enterprise for the | 14 | | purpose of resale by the
enterprise.
| 15 | | (2) Personal property purchased by a not-for-profit | 16 | | Illinois county
fair association for use in conducting, | 17 | | operating, or promoting the
county fair.
| 18 | | (3) Personal property purchased by a not-for-profit
arts | 19 | | or cultural organization that establishes, by proof required | 20 | | by the
Department by
rule, that it has received an exemption | 21 | | under Section 501(c)(3) of the Internal
Revenue Code and that | 22 | | is organized and operated primarily for the
presentation
or | 23 | | support of arts or cultural programming, activities, or |
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| 1 | | services. These
organizations include, but are not limited to, | 2 | | music and dramatic arts
organizations such as symphony | 3 | | orchestras and theatrical groups, arts and
cultural service | 4 | | organizations, local arts councils, visual arts organizations,
| 5 | | and media arts organizations.
On and after July 1, 2001 (the | 6 | | effective date of Public Act 92-35), however, an entity | 7 | | otherwise eligible for this exemption shall not
make tax-free | 8 | | purchases unless it has an active identification number issued | 9 | | by
the Department.
| 10 | | (4) Personal property purchased by a governmental body, by | 11 | | a
corporation, society, association, foundation, or | 12 | | institution organized and
operated exclusively for charitable, | 13 | | religious, or educational purposes, or
by a not-for-profit | 14 | | corporation, society, association, foundation,
institution, or | 15 | | organization that has no compensated officers or employees
and | 16 | | that is organized and operated primarily for the recreation of | 17 | | persons
55 years of age or older. A limited liability company | 18 | | may qualify for the
exemption under this paragraph only if the | 19 | | limited liability company is
organized and operated | 20 | | exclusively for educational purposes. On and after July
1, | 21 | | 1987, however, no entity otherwise eligible for this exemption | 22 | | shall make
tax-free purchases unless it has an active | 23 | | exemption identification number
issued by the Department.
| 24 | | (5) Until July 1, 2003, a passenger car that is a | 25 | | replacement vehicle to
the extent that the
purchase price of | 26 | | the car is subject to the Replacement Vehicle Tax.
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| 1 | | (6) Until July 1, 2003 and beginning again on September 1, | 2 | | 2004 through August 30, 2014, graphic arts machinery and | 3 | | equipment, including
repair and replacement
parts, both new | 4 | | and used, and including that manufactured on special order,
| 5 | | certified by the purchaser to be used primarily for graphic | 6 | | arts production,
and including machinery and equipment | 7 | | purchased for lease.
Equipment includes chemicals or chemicals | 8 | | acting as catalysts but only if
the
chemicals or chemicals | 9 | | acting as catalysts effect a direct and immediate change
upon | 10 | | a graphic arts product. Beginning on July 1, 2017, graphic | 11 | | arts machinery and equipment is included in the manufacturing | 12 | | and assembling machinery and equipment exemption under | 13 | | paragraph (18).
| 14 | | (7) Farm chemicals.
| 15 | | (8) Legal tender, currency, medallions, or gold or silver | 16 | | coinage issued by
the State of Illinois, the government of the | 17 | | United States of America, or the
government of any foreign | 18 | | country, and bullion.
| 19 | | (9) Personal property purchased from a teacher-sponsored | 20 | | student
organization affiliated with an elementary or | 21 | | secondary school located in
Illinois.
| 22 | | (10) A motor vehicle that is used for automobile renting, | 23 | | as defined in the
Automobile Renting Occupation and Use Tax | 24 | | Act.
| 25 | | (10.1) A shared vehicle the use of which is subject to the | 26 | | Car-Sharing Use and Occupation Tax Act. This paragraph is |
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| 1 | | exempt from the provisions
of
Section 3-90. | 2 | | (11) Farm machinery and equipment, both new and used,
| 3 | | including that manufactured on special order, certified by the | 4 | | purchaser
to be used primarily for production agriculture or | 5 | | State or federal
agricultural programs, including individual | 6 | | replacement parts for
the machinery and equipment, including | 7 | | machinery and equipment
purchased
for lease,
and including | 8 | | implements of husbandry defined in Section 1-130 of
the | 9 | | Illinois Vehicle Code, farm machinery and agricultural | 10 | | chemical and
fertilizer spreaders, and nurse wagons required | 11 | | to be registered
under Section 3-809 of the Illinois Vehicle | 12 | | Code,
but excluding other motor
vehicles required to be
| 13 | | registered under the Illinois Vehicle Code.
Horticultural | 14 | | polyhouses or hoop houses used for propagating, growing, or
| 15 | | overwintering plants shall be considered farm machinery and | 16 | | equipment under
this item (11).
Agricultural chemical tender | 17 | | tanks and dry boxes shall include units sold
separately from a | 18 | | motor vehicle required to be licensed and units sold mounted
| 19 | | on a motor vehicle required to be licensed if the selling price | 20 | | of the tender
is separately stated.
| 21 | | Farm machinery and equipment shall include precision | 22 | | farming equipment
that is
installed or purchased to be | 23 | | installed on farm machinery and equipment
including, but not | 24 | | limited to, tractors, harvesters, sprayers, planters,
seeders, | 25 | | or spreaders.
Precision farming equipment includes, but is not | 26 | | limited to, soil testing
sensors, computers, monitors, |
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| 1 | | software, global positioning
and mapping systems, and other | 2 | | such equipment.
| 3 | | Farm machinery and equipment also includes computers, | 4 | | sensors, software, and
related equipment used primarily in the
| 5 | | computer-assisted operation of production agriculture | 6 | | facilities, equipment,
and
activities such as, but not limited | 7 | | to,
the collection, monitoring, and correlation of
animal and | 8 | | crop data for the purpose of
formulating animal diets and | 9 | | agricultural chemicals. This item (11) is exempt
from the | 10 | | provisions of
Section 3-90.
| 11 | | (12) Until June 30, 2013, fuel and petroleum products sold | 12 | | to or used by an air common
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
flight | 15 | | destined for or returning from a location or locations
outside | 16 | | the United States without regard to previous or subsequent | 17 | | domestic
stopovers.
| 18 | | Beginning July 1, 2013, fuel and petroleum products sold | 19 | | to or used by an air carrier, certified by the carrier to be | 20 | | used for consumption, shipment, or storage in the conduct of | 21 | | its business as an air common carrier, for a flight that (i) is | 22 | | engaged in foreign trade or is engaged in trade between the | 23 | | United States and any of its possessions and (ii) transports | 24 | | at least one individual or package for hire from the city of | 25 | | origination to the city of final destination on the same | 26 | | aircraft, without regard to a change in the flight number of |
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| 1 | | that aircraft. | 2 | | (13) Proceeds of mandatory service charges separately
| 3 | | stated on customers' bills for the purchase and consumption of | 4 | | food and
beverages purchased at retail from a retailer, to the | 5 | | extent that the proceeds
of the service charge are in fact | 6 | | turned over as tips or as a substitute
for tips to the | 7 | | employees who participate directly in preparing, serving,
| 8 | | hosting or cleaning up the food or beverage function with | 9 | | respect to which
the service charge is imposed.
| 10 | | (14) Until July 1, 2003, oil field exploration, drilling, | 11 | | and production
equipment,
including (i) rigs and parts of | 12 | | rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) | 13 | | pipe and tubular goods,
including casing and drill strings, | 14 | | (iii) pumps and pump-jack units, (iv)
storage tanks and flow | 15 | | lines, (v) any individual replacement part for oil
field | 16 | | exploration, drilling, and production equipment, and (vi) | 17 | | machinery and
equipment purchased
for lease; but excluding | 18 | | motor vehicles required to be registered under the
Illinois | 19 | | Vehicle Code.
| 20 | | (15) Photoprocessing machinery and equipment, including | 21 | | repair and
replacement parts, both new and used, including | 22 | | that
manufactured on special order, certified by the purchaser | 23 | | to be used
primarily for photoprocessing, and including
| 24 | | photoprocessing machinery and equipment purchased for lease.
| 25 | | (16) Until July 1, 2028, coal and aggregate exploration, | 26 | | mining, off-highway hauling,
processing, maintenance, and |
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| 1 | | reclamation equipment,
including replacement parts and | 2 | | equipment, and
including equipment purchased for lease, but | 3 | | excluding motor
vehicles required to be registered under the | 4 | | Illinois Vehicle Code. The changes made to this Section by | 5 | | Public Act 97-767 apply on and after July 1, 2003, but no claim | 6 | | for credit or refund is allowed on or after August 16, 2013 | 7 | | (the effective date of Public Act 98-456)
for such taxes paid | 8 | | during the period beginning July 1, 2003 and ending on August | 9 | | 16, 2013 (the effective date of Public Act 98-456).
| 10 | | (17) Until July 1, 2003, distillation machinery and | 11 | | equipment, sold as a
unit or kit,
assembled or installed by the | 12 | | retailer, certified by the user to be used
only for the | 13 | | production of ethyl alcohol that will be used for consumption
| 14 | | as motor fuel or as a component of motor fuel for the personal | 15 | | use of the
user, and not subject to sale or resale.
| 16 | | (18) Manufacturing and assembling machinery and equipment | 17 | | used
primarily in the process of manufacturing or assembling | 18 | | tangible
personal property for wholesale or retail sale or | 19 | | lease, whether that sale
or lease is made directly by the | 20 | | manufacturer or by some other person,
whether the materials | 21 | | used in the process are
owned by the manufacturer or some other | 22 | | person, or whether that sale or
lease is made apart from or as | 23 | | an incident to the seller's engaging in
the service occupation | 24 | | of producing machines, tools, dies, jigs,
patterns, gauges, or | 25 | | other similar items of no commercial value on
special order | 26 | | for a particular purchaser. The exemption provided by this |
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| 1 | | paragraph (18) includes production related tangible personal | 2 | | property, as defined in Section 3-50, purchased on or after | 3 | | July 1, 2019. The exemption provided by this paragraph (18) | 4 | | does not include machinery and equipment used in (i) the | 5 | | generation of electricity for wholesale or retail sale; (ii) | 6 | | the generation or treatment of natural or artificial gas for | 7 | | wholesale or retail sale that is delivered to customers | 8 | | through pipes, pipelines, or mains; or (iii) the treatment of | 9 | | water for wholesale or retail sale that is delivered to | 10 | | customers through pipes, pipelines, or mains. The provisions | 11 | | of Public Act 98-583 are declaratory of existing law as to the | 12 | | meaning and scope of this exemption. Beginning on July 1, | 13 | | 2017, the exemption provided by this paragraph (18) includes, | 14 | | but is not limited to, graphic arts machinery and equipment, | 15 | | as defined in paragraph (6) of this Section.
| 16 | | (19) Personal property delivered to a purchaser or | 17 | | purchaser's donee
inside Illinois when the purchase order for | 18 | | that personal property was
received by a florist located | 19 | | outside Illinois who has a florist located
inside Illinois | 20 | | deliver the personal property.
| 21 | | (20) Semen used for artificial insemination of livestock | 22 | | for direct
agricultural production.
| 23 | | (21) Horses, or interests in horses, registered with and | 24 | | meeting the
requirements of any of the
Arabian Horse Club | 25 | | Registry of America, Appaloosa Horse Club, American Quarter
| 26 | | Horse Association, United States
Trotting Association, or |
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| 1 | | Jockey Club, as appropriate, used for
purposes of breeding or | 2 | | racing for prizes. This item (21) is exempt from the | 3 | | provisions of Section 3-90, and the exemption provided for | 4 | | under this item (21) applies for all periods beginning May 30, | 5 | | 1995, but no claim for credit or refund is allowed on or after | 6 | | January 1, 2008
for such taxes paid during the period | 7 | | beginning May 30, 2000 and ending on January 1, 2008.
| 8 | | (22) Computers and communications equipment utilized for | 9 | | any
hospital
purpose
and equipment used in the diagnosis,
| 10 | | analysis, or treatment of hospital patients purchased by a | 11 | | lessor who leases
the
equipment, under a lease of one year or | 12 | | longer executed or in effect at the
time the lessor would | 13 | | otherwise be subject to the tax imposed by this Act, to a
| 14 | | hospital
that has been issued an active tax exemption | 15 | | identification number by
the
Department under Section 1g of | 16 | | the Retailers' Occupation Tax Act. If the
equipment is leased | 17 | | in a manner that does not qualify for
this exemption or is used | 18 | | in any other non-exempt manner, the lessor
shall be liable for | 19 | | the
tax imposed under this Act or the Service Use Tax Act, as | 20 | | the case may
be, based on the fair market value of the property | 21 | | at the time the
non-qualifying use occurs. No lessor shall | 22 | | collect or attempt to collect an
amount (however
designated) | 23 | | that purports to reimburse that lessor for the tax imposed by | 24 | | this
Act or the Service Use Tax Act, as the case may be, if the | 25 | | tax has not been
paid by the lessor. If a lessor improperly | 26 | | collects any such amount from the
lessee, the lessee shall |
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| 1 | | have a legal right to claim a refund of that amount
from the | 2 | | lessor. If, however, that amount is not refunded to the lessee | 3 | | for
any reason, the lessor is liable to pay that amount to the | 4 | | Department.
| 5 | | (23) Personal property purchased by a lessor who leases | 6 | | the
property, under
a
lease of
one year or longer executed or | 7 | | in effect at the time
the lessor would otherwise be subject to | 8 | | the tax imposed by this Act,
to a governmental body
that has | 9 | | been issued an active sales tax exemption identification | 10 | | number by the
Department under Section 1g of the Retailers' | 11 | | Occupation Tax Act.
If the
property is leased in a manner that | 12 | | does not qualify for
this exemption
or used in any other | 13 | | non-exempt manner, the lessor shall be liable for the
tax | 14 | | imposed under this Act or the Service Use Tax Act, as the case | 15 | | may
be, based on the fair market value of the property at the | 16 | | time the
non-qualifying use occurs. No lessor shall collect or | 17 | | attempt to collect an
amount (however
designated) that | 18 | | purports to reimburse that lessor for the tax imposed by this
| 19 | | Act or the Service Use Tax Act, as the case may be, if the tax | 20 | | has not been
paid by the lessor. If a lessor improperly | 21 | | collects any such amount from the
lessee, the lessee shall | 22 | | have a legal right to claim a refund of that amount
from the | 23 | | lessor. If, however, that amount is not refunded to the lessee | 24 | | for
any reason, the lessor is liable to pay that amount to the | 25 | | Department.
| 26 | | (24) Beginning with taxable years ending on or after |
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| 1 | | December
31, 1995
and
ending with taxable years ending on or | 2 | | before December 31, 2004,
personal property that is
donated | 3 | | for disaster relief to be used in a State or federally declared
| 4 | | disaster area in Illinois or bordering Illinois by a | 5 | | manufacturer or retailer
that is registered in this State to a | 6 | | corporation, society, association,
foundation, or institution | 7 | | that has been issued a sales tax exemption
identification | 8 | | number by the Department that assists victims of the disaster
| 9 | | who reside within the declared disaster area.
| 10 | | (25) Beginning with taxable years ending on or after | 11 | | December
31, 1995 and
ending with taxable years ending on or | 12 | | before December 31, 2004, personal
property that is used in | 13 | | the performance of infrastructure repairs in this
State, | 14 | | including but not limited to municipal roads and streets, | 15 | | access roads,
bridges, sidewalks, waste disposal systems, | 16 | | water and sewer line extensions,
water distribution and | 17 | | purification facilities, storm water drainage and
retention | 18 | | facilities, and sewage treatment facilities, resulting from a | 19 | | State
or federally declared disaster in Illinois or bordering | 20 | | Illinois when such
repairs are initiated on facilities located | 21 | | in the declared disaster area
within 6 months after the | 22 | | disaster.
| 23 | | (26) Beginning July 1, 1999, game or game birds purchased | 24 | | at a "game
breeding
and hunting preserve area" as that term is
| 25 | | used in
the Wildlife Code. This paragraph is exempt from the | 26 | | provisions
of
Section 3-90.
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| 1 | | (27) A motor vehicle, as that term is defined in Section | 2 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a | 3 | | corporation, limited liability company,
society, association, | 4 | | foundation, or institution that is determined by the
| 5 | | Department to be organized and operated exclusively for | 6 | | educational purposes.
For purposes of this exemption, "a | 7 | | corporation, limited liability company,
society, association, | 8 | | foundation, or institution organized and operated
exclusively | 9 | | for educational purposes" means all tax-supported public | 10 | | schools,
private schools that offer systematic instruction in | 11 | | useful branches of
learning by methods common to public | 12 | | schools and that compare favorably in
their scope and | 13 | | intensity with the course of study presented in tax-supported
| 14 | | schools, and vocational or technical schools or institutes | 15 | | organized and
operated exclusively to provide a course of | 16 | | study of not less than 6 weeks
duration and designed to prepare | 17 | | individuals to follow a trade or to pursue a
manual, | 18 | | technical, mechanical, industrial, business, or commercial
| 19 | | occupation.
| 20 | | (28) Beginning January 1, 2000, personal property, | 21 | | including
food,
purchased through fundraising
events for the | 22 | | benefit of
a public or private elementary or
secondary school, | 23 | | a group of those schools, or one or more school
districts if | 24 | | the events are
sponsored by an entity recognized by the school | 25 | | district that consists
primarily of volunteers and includes
| 26 | | parents and teachers of the school children. This paragraph |
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| 1 | | does not apply
to fundraising
events (i) for the benefit of | 2 | | private home instruction or (ii)
for which the fundraising | 3 | | entity purchases the personal property sold at
the events from | 4 | | another individual or entity that sold the property for the
| 5 | | purpose of resale by the fundraising entity and that
profits | 6 | | from the sale to the
fundraising entity. This paragraph is | 7 | | exempt
from the provisions
of Section 3-90.
| 8 | | (29) Beginning January 1, 2000 and through December 31, | 9 | | 2001, new or
used automatic vending
machines that prepare and | 10 | | serve hot food and beverages, including coffee, soup,
and
| 11 | | other items, and replacement parts for these machines.
| 12 | | Beginning January 1,
2002 and through June 30, 2003, machines | 13 | | and parts for machines used in
commercial, coin-operated | 14 | | amusement and vending business if a use or occupation
tax is | 15 | | paid on the gross receipts derived from the use of the | 16 | | commercial,
coin-operated amusement and vending machines.
This
| 17 | | paragraph
is exempt from the provisions of Section 3-90.
| 18 | | (30) Beginning January 1, 2001 and through June 30, 2016, | 19 | | food for human consumption that is to be consumed off the | 20 | | premises
where it is sold (other than alcoholic beverages, | 21 | | soft drinks, and food that
has been prepared for immediate | 22 | | consumption) and prescription and
nonprescription medicines, | 23 | | drugs, medical appliances, and insulin, urine
testing | 24 | | materials, syringes, and needles used by diabetics, for human | 25 | | use, when
purchased for use by a person receiving medical | 26 | | assistance under Article V of
the Illinois Public Aid Code who |
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| 1 | | resides in a licensed long-term care facility,
as defined in | 2 | | the Nursing Home Care Act, or in a licensed facility as defined | 3 | | in the ID/DD Community Care Act, the MC/DD Act, or the | 4 | | Specialized Mental Health Rehabilitation Act of 2013.
| 5 | | (31) Beginning on August 2, 2001 (the effective date of | 6 | | Public Act 92-227),
computers and communications equipment
| 7 | | utilized for any hospital purpose and equipment used in the | 8 | | diagnosis,
analysis, or treatment of hospital patients | 9 | | purchased by a lessor who leases
the equipment, under a lease | 10 | | of one year or longer executed or in effect at the
time the | 11 | | lessor would otherwise be subject to the tax imposed by this | 12 | | Act, to a
hospital that has been issued an active tax exemption | 13 | | identification number by
the Department under Section 1g of | 14 | | the Retailers' Occupation Tax Act. If the
equipment is leased | 15 | | in a manner that does not qualify for this exemption or is
used | 16 | | in any other nonexempt manner, the lessor shall be liable for | 17 | | the tax
imposed under this Act or the Service Use Tax Act, as | 18 | | the case may be, based on
the fair market value of the property | 19 | | at the time the nonqualifying use
occurs. No lessor shall | 20 | | collect or attempt to collect an amount (however
designated) | 21 | | that purports to reimburse that lessor for the tax imposed by | 22 | | this
Act or the Service Use Tax Act, as the case may be, if the | 23 | | tax has not been
paid by the lessor. If a lessor improperly | 24 | | collects any such amount from the
lessee, the lessee shall | 25 | | have a legal right to claim a refund of that amount
from the | 26 | | lessor. If, however, that amount is not refunded to the lessee |
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| 1 | | for
any reason, the lessor is liable to pay that amount to the | 2 | | Department.
This paragraph is exempt from the provisions of | 3 | | Section 3-90.
| 4 | | (32) Beginning on August 2, 2001 (the effective date of | 5 | | Public Act 92-227),
personal property purchased by a lessor | 6 | | who leases the property,
under a lease of one year or longer | 7 | | executed or in effect at the time the
lessor would otherwise be | 8 | | subject to the tax imposed by this Act, to a
governmental body | 9 | | that has been issued an active sales tax exemption
| 10 | | identification number by the Department under Section 1g of | 11 | | the Retailers'
Occupation Tax Act. If the property is leased | 12 | | in a manner that does not
qualify for this exemption or used in | 13 | | any other nonexempt manner, the lessor
shall be liable for the | 14 | | tax imposed under this Act or the Service Use Tax Act,
as the | 15 | | case may be, based on the fair market value of the property at | 16 | | the time
the nonqualifying use occurs. No lessor shall collect | 17 | | or attempt to collect
an amount (however designated) that | 18 | | purports to reimburse that lessor for the
tax imposed by this | 19 | | Act or the Service Use Tax Act, as the case may be, if the
tax | 20 | | has not been paid by the lessor. If a lessor improperly | 21 | | collects any such
amount from the lessee, the lessee shall | 22 | | have a legal right to claim a refund
of that amount from the | 23 | | lessor. If, however, that amount is not refunded to
the lessee | 24 | | for any reason, the lessor is liable to pay that amount to the
| 25 | | Department. This paragraph is exempt from the provisions of | 26 | | Section 3-90.
|
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| 1 | | (33) On and after July 1, 2003 and through June 30, 2004, | 2 | | the use in this State of motor vehicles of
the second division | 3 | | with a gross vehicle weight in excess of 8,000 pounds and
that | 4 | | are subject to the commercial distribution fee imposed under | 5 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on | 6 | | July 1, 2004 and through June 30, 2005, the use in this State | 7 | | of motor vehicles of the second division: (i) with a gross | 8 | | vehicle weight rating in excess of 8,000 pounds; (ii) that are | 9 | | subject to the commercial distribution fee imposed under | 10 | | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that | 11 | | are primarily used for commercial purposes. Through June 30, | 12 | | 2005, this exemption applies to repair and
replacement parts | 13 | | added after the initial purchase of such a motor vehicle if
| 14 | | that motor
vehicle is used in a manner that would qualify for | 15 | | the rolling stock exemption
otherwise provided for in this | 16 | | Act. For purposes of this paragraph, the term "used for | 17 | | commercial purposes" means the transportation of persons or | 18 | | property in furtherance of any commercial or industrial | 19 | | enterprise, whether for-hire or not.
| 20 | | (34) Beginning January 1, 2008, tangible personal property | 21 | | used in the construction or maintenance of a community water | 22 | | supply, as defined under Section 3.145 of the Environmental | 23 | | Protection Act, that is operated by a not-for-profit | 24 | | corporation that holds a valid water supply permit issued | 25 | | under Title IV of the Environmental Protection Act. This | 26 | | paragraph is exempt from the provisions of Section 3-90. |
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| 1 | | (35) Beginning January 1, 2010 and continuing through | 2 | | December 31, 2024, materials, parts, equipment, components, | 3 | | and furnishings incorporated into or upon an aircraft as part | 4 | | of the modification, refurbishment, completion, replacement, | 5 | | repair, or maintenance of the aircraft. This exemption | 6 | | includes consumable supplies used in the modification, | 7 | | refurbishment, completion, replacement, repair, and | 8 | | maintenance of aircraft, but excludes any materials, parts, | 9 | | equipment, components, and consumable supplies used in the | 10 | | modification, replacement, repair, and maintenance of aircraft | 11 | | engines or power plants, whether such engines or power plants | 12 | | are installed or uninstalled upon any such aircraft. | 13 | | "Consumable supplies" include, but are not limited to, | 14 | | adhesive, tape, sandpaper, general purpose lubricants, | 15 | | cleaning solution, latex gloves, and protective films. This | 16 | | exemption applies only to the use of qualifying tangible | 17 | | personal property by persons who modify, refurbish, complete, | 18 | | repair, replace, or maintain aircraft and who (i) hold an Air | 19 | | Agency Certificate and are empowered to operate an approved | 20 | | repair station by the Federal Aviation Administration, (ii) | 21 | | have a Class IV Rating, and (iii) conduct operations in | 22 | | accordance with Part 145 of the Federal Aviation Regulations. | 23 | | The exemption does not include aircraft operated by a | 24 | | commercial air carrier providing scheduled passenger air | 25 | | service pursuant to authority issued under Part 121 or Part | 26 | | 129 of the Federal Aviation Regulations. The changes made to |
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| 1 | | this paragraph (35) by Public Act 98-534 are declarative of | 2 | | existing law. It is the intent of the General Assembly that the | 3 | | exemption under this paragraph (35) applies continuously from | 4 | | January 1, 2010 through December 31, 2024; however, no claim | 5 | | for credit or refund is allowed for taxes paid as a result of | 6 | | the disallowance of this exemption on or after January 1, 2015 | 7 | | and prior to February 5, 2020 ( the effective date of Public Act | 8 | | 101-629) this amendatory Act of the 101st General Assembly . | 9 | | (36) Tangible personal property purchased by a | 10 | | public-facilities corporation, as described in Section | 11 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 12 | | constructing or furnishing a municipal convention hall, but | 13 | | only if the legal title to the municipal convention hall is | 14 | | transferred to the municipality without any further | 15 | | consideration by or on behalf of the municipality at the time | 16 | | of the completion of the municipal convention hall or upon the | 17 | | retirement or redemption of any bonds or other debt | 18 | | instruments issued by the public-facilities corporation in | 19 | | connection with the development of the municipal convention | 20 | | hall. This exemption includes existing public-facilities | 21 | | corporations as provided in Section 11-65-25 of the Illinois | 22 | | Municipal Code. This paragraph is exempt from the provisions | 23 | | of Section 3-90. | 24 | | (37) Beginning January 1, 2017 and through December 31, | 25 | | 2026, menstrual pads, tampons, and menstrual cups. | 26 | | (38) Merchandise that is subject to the Rental Purchase |
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| 1 | | Agreement Occupation and Use Tax. The purchaser must certify | 2 | | that the item is purchased to be rented subject to a rental | 3 | | purchase agreement, as defined in the Rental Purchase | 4 | | Agreement Act, and provide proof of registration under the | 5 | | Rental Purchase Agreement Occupation and Use Tax Act. This | 6 | | paragraph is exempt from the provisions of Section 3-90. | 7 | | (39) Tangible personal property purchased by a purchaser | 8 | | who is exempt from the tax imposed by this Act by operation of | 9 | | federal law. This paragraph is exempt from the provisions of | 10 | | Section 3-90. | 11 | | (40) Qualified tangible personal property used in the | 12 | | construction or operation of a data center that has been | 13 | | granted a certificate of exemption by the Department of | 14 | | Commerce and Economic Opportunity, whether that tangible | 15 | | personal property is purchased by the owner, operator, or | 16 | | tenant of the data center or by a contractor or subcontractor | 17 | | of the owner, operator, or tenant. Data centers that would | 18 | | have qualified for a certificate of exemption prior to January | 19 | | 1, 2020 had Public Act 101-31 been in effect may apply for and | 20 | | obtain an exemption for subsequent purchases of computer | 21 | | equipment or enabling software purchased or leased to upgrade, | 22 | | supplement, or replace computer equipment or enabling software | 23 | | purchased or leased in the original investment that would have | 24 | | qualified. | 25 | | The Department of Commerce and Economic Opportunity shall | 26 | | grant a certificate of exemption under this item (40) to |
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| 1 | | qualified data centers as defined by Section 605-1025 of the | 2 | | Department of Commerce and Economic Opportunity Law of the
| 3 | | Civil Administrative Code of Illinois. | 4 | | For the purposes of this item (40): | 5 | | "Data center" means a building or a series of | 6 | | buildings rehabilitated or constructed to house working | 7 | | servers in one physical location or multiple sites within | 8 | | the State of Illinois. | 9 | | "Qualified tangible personal property" means: | 10 | | electrical systems and equipment; climate control and | 11 | | chilling equipment and systems; mechanical systems and | 12 | | equipment; monitoring and secure systems; emergency | 13 | | generators; hardware; computers; servers; data storage | 14 | | devices; network connectivity equipment; racks; cabinets; | 15 | | telecommunications cabling infrastructure; raised floor | 16 | | systems; peripheral components or systems; software; | 17 | | mechanical, electrical, or plumbing systems; battery | 18 | | systems; cooling systems and towers; temperature control | 19 | | systems; other cabling; and other data center | 20 | | infrastructure equipment and systems necessary to operate | 21 | | qualified tangible personal property, including fixtures; | 22 | | and component parts of any of the foregoing, including | 23 | | installation, maintenance, repair, refurbishment, and | 24 | | replacement of qualified tangible personal property to | 25 | | generate, transform, transmit, distribute, or manage | 26 | | electricity necessary to operate qualified tangible |
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| 1 | | personal property; and all other tangible personal | 2 | | property that is essential to the operations of a computer | 3 | | data center. The term "qualified tangible personal | 4 | | property" also includes building materials physically | 5 | | incorporated in to the qualifying data center. To document | 6 | | the exemption allowed under this Section, the retailer | 7 | | must obtain from the purchaser a copy of the certificate | 8 | | of eligibility issued by the Department of Commerce and | 9 | | Economic Opportunity. | 10 | | This item (40) is exempt from the provisions of Section | 11 | | 3-90. | 12 | | (41) Beginning July 1, 2022, breast pumps, breast pump | 13 | | collection and storage supplies, and breast pump kits. This | 14 | | item (41) is exempt from the provisions of Section 3-90. As | 15 | | used in this item (41): | 16 | | "Breast pump" means an electrically controlled or | 17 | | manually controlled pump device designed or marketed to be | 18 | | used to express milk from a human breast during lactation, | 19 | | including the pump device and any battery, AC adapter, or | 20 | | other power supply unit that is used to power the pump | 21 | | device and is packaged and sold with the pump device at the | 22 | | time of sale. | 23 | | "Breast pump collection and storage supplies" means | 24 | | items of tangible personal property designed or marketed | 25 | | to be used in conjunction with a breast pump to collect | 26 | | milk expressed from a human breast and to store collected |
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| 1 | | milk until it is ready for consumption. | 2 | | "Breast pump collection and storage supplies" | 3 | | includes, but is not limited to: breast shields and breast | 4 | | shield connectors; breast pump tubes and tubing adapters; | 5 | | breast pump valves and membranes; backflow protectors and | 6 | | backflow protector adaptors; bottles and bottle caps | 7 | | specific to the operation of the breast pump; and breast | 8 | | milk storage bags. | 9 | | "Breast pump collection and storage supplies" does not | 10 | | include: (1) bottles and bottle caps not specific to the | 11 | | operation of the breast pump; (2) breast pump travel bags | 12 | | and other similar carrying accessories, including ice | 13 | | packs, labels, and other similar products; (3) breast pump | 14 | | cleaning supplies; (4) nursing bras, bra pads, breast | 15 | | shells, and other similar products; and (5) creams, | 16 | | ointments, and other similar products that relieve | 17 | | breastfeeding-related symptoms or conditions of the | 18 | | breasts or nipples, unless sold as part of a breast pump | 19 | | kit that is pre-packaged by the breast pump manufacturer | 20 | | or distributor. | 21 | | "Breast pump kit" means a kit that: (1) contains no | 22 | | more than a breast pump, breast pump collection and | 23 | | storage supplies, a rechargeable battery for operating the | 24 | | breast pump, a breastmilk cooler, bottle stands, ice | 25 | | packs, and a breast pump carrying case; and (2) is | 26 | | pre-packaged as a breast pump kit by the breast pump |
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| 1 | | manufacturer or distributor. | 2 | | (42) (41) Tangible personal property sold by or on behalf | 3 | | of the State Treasurer pursuant to the Revised Uniform | 4 | | Unclaimed Property Act. This item (42) (41) is exempt from the | 5 | | provisions of Section 3-90. | 6 | | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; | 7 | | 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. | 8 | | 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; | 9 | | 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, | 10 | | eff. 5-27-22; revised 8-1-22.)
| 11 | | Section 15. The Retailers' Occupation Tax Act is amended | 12 | | by changing Section 2-5 as follows:
| 13 | | (35 ILCS 120/2-5)
| 14 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from | 15 | | the sale of
the following tangible personal property are | 16 | | exempt from the tax imposed
by this Act:
| 17 | | (1) Farm chemicals.
| 18 | | (2) Farm machinery and equipment, both new and used, | 19 | | including that
manufactured on special order, certified by | 20 | | the purchaser to be used
primarily for production | 21 | | agriculture or State or federal agricultural
programs, | 22 | | including individual replacement parts for the machinery | 23 | | and
equipment, including machinery and equipment purchased | 24 | | for lease,
and including implements of husbandry defined |
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| 1 | | in Section 1-130 of
the Illinois Vehicle Code, farm | 2 | | machinery and agricultural chemical and
fertilizer | 3 | | spreaders, and nurse wagons required to be registered
| 4 | | under Section 3-809 of the Illinois Vehicle Code,
but
| 5 | | excluding other motor vehicles required to be registered | 6 | | under the Illinois
Vehicle Code.
Horticultural polyhouses | 7 | | or hoop houses used for propagating, growing, or
| 8 | | overwintering plants shall be considered farm machinery | 9 | | and equipment under
this item (2).
Agricultural chemical | 10 | | tender tanks and dry boxes shall include units sold
| 11 | | separately from a motor vehicle required to be licensed | 12 | | and units sold mounted
on a motor vehicle required to be | 13 | | licensed, if the selling price of the tender
is separately | 14 | | stated.
| 15 | | Farm machinery and equipment shall include precision | 16 | | farming equipment
that is
installed or purchased to be | 17 | | installed on farm machinery and equipment
including, but | 18 | | not limited to, tractors, harvesters, sprayers, planters,
| 19 | | seeders, or spreaders.
Precision farming equipment | 20 | | includes, but is not limited to,
soil testing sensors, | 21 | | computers, monitors, software, global positioning
and | 22 | | mapping systems, and other such equipment.
| 23 | | Farm machinery and equipment also includes computers, | 24 | | sensors, software, and
related equipment used primarily in | 25 | | the
computer-assisted operation of production agriculture | 26 | | facilities, equipment,
and activities such as, but
not |
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| 1 | | limited to,
the collection, monitoring, and correlation of
| 2 | | animal and crop data for the purpose of
formulating animal | 3 | | diets and agricultural chemicals. This item (2) is exempt
| 4 | | from the provisions of
Section 2-70.
| 5 | | (3) Until July 1, 2003, distillation machinery and | 6 | | equipment, sold as a
unit or kit,
assembled or installed | 7 | | by the retailer, certified by the user to be used
only for | 8 | | the production of ethyl alcohol that will be used for | 9 | | consumption
as motor fuel or as a component of motor fuel | 10 | | for the personal use of the
user, and not subject to sale | 11 | | or resale.
| 12 | | (4) Until July 1, 2003 and beginning again September | 13 | | 1, 2004 through August 30, 2014, graphic arts machinery | 14 | | and equipment, including
repair and
replacement parts, | 15 | | both new and used, and including that manufactured on
| 16 | | special order or purchased for lease, certified by the | 17 | | purchaser to be used
primarily for graphic arts | 18 | | production.
Equipment includes chemicals or
chemicals | 19 | | acting as catalysts but only if
the chemicals or chemicals | 20 | | acting as catalysts effect a direct and immediate
change | 21 | | upon a
graphic arts product. Beginning on July 1, 2017, | 22 | | graphic arts machinery and equipment is included in the | 23 | | manufacturing and assembling machinery and equipment | 24 | | exemption under paragraph (14).
| 25 | | (5) A motor vehicle that is used for automobile | 26 | | renting, as defined in the Automobile Renting Occupation |
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| 1 | | and Use Tax Act. This paragraph is exempt from
the | 2 | | provisions of Section 2-70.
| 3 | | (10.1) A shared vehicle the use of which is subject to the | 4 | | Car-Sharing Use and Occupation Tax Act. This paragraph is | 5 | | exempt from
the provisions of Section 2-70. | 6 | | (6) Personal property sold by a teacher-sponsored | 7 | | student organization
affiliated with an elementary or | 8 | | secondary school located in Illinois.
| 9 | | (7) Until July 1, 2003, proceeds of that portion of | 10 | | the selling price of
a passenger car the
sale of which is | 11 | | subject to the Replacement Vehicle Tax.
| 12 | | (8) Personal property sold to an Illinois county fair | 13 | | association for
use in conducting, operating, or promoting | 14 | | the county fair.
| 15 | | (9) Personal property sold to a not-for-profit arts
or | 16 | | cultural organization that establishes, by proof required | 17 | | by the Department
by
rule, that it has received an | 18 | | exemption under Section 501(c)(3) of the
Internal Revenue | 19 | | Code and that is organized and operated primarily for the
| 20 | | presentation
or support of arts or cultural programming, | 21 | | activities, or services. These
organizations include, but | 22 | | are not limited to, music and dramatic arts
organizations | 23 | | such as symphony orchestras and theatrical groups, arts | 24 | | and
cultural service organizations, local arts councils, | 25 | | visual arts organizations,
and media arts organizations.
| 26 | | On and after July 1, 2001 (the effective date of Public Act |
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| 1 | | 92-35), however, an entity otherwise eligible for this | 2 | | exemption shall not
make tax-free purchases unless it has | 3 | | an active identification number issued by
the Department.
| 4 | | (10) Personal property sold by a corporation, society, | 5 | | association,
foundation, institution, or organization, | 6 | | other than a limited liability
company, that is organized | 7 | | and operated as a not-for-profit service enterprise
for | 8 | | the benefit of persons 65 years of age or older if the | 9 | | personal property
was not purchased by the enterprise for | 10 | | the purpose of resale by the
enterprise.
| 11 | | (11) Personal property sold to a governmental body, to | 12 | | a corporation,
society, association, foundation, or | 13 | | institution organized and operated
exclusively for | 14 | | charitable, religious, or educational purposes, or to a
| 15 | | not-for-profit corporation, society, association, | 16 | | foundation, institution,
or organization that has no | 17 | | compensated officers or employees and that is
organized | 18 | | and operated primarily for the recreation of persons 55 | 19 | | years of
age or older. A limited liability company may | 20 | | qualify for the exemption under
this paragraph only if the | 21 | | limited liability company is organized and operated
| 22 | | exclusively for educational purposes. On and after July 1, | 23 | | 1987, however, no
entity otherwise eligible for this | 24 | | exemption shall make tax-free purchases
unless it has an | 25 | | active identification number issued by the Department.
| 26 | | (12) (Blank).
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| 1 | | (12-5) On and after July 1, 2003 and through June 30, | 2 | | 2004, motor vehicles of the second division
with a gross | 3 | | vehicle weight in excess of 8,000 pounds
that
are
subject | 4 | | to the commercial distribution fee imposed under Section | 5 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | 6 | | 2004 and through June 30, 2005, the use in this State of | 7 | | motor vehicles of the second division: (i) with a gross | 8 | | vehicle weight rating in excess of 8,000 pounds; (ii) that | 9 | | are subject to the commercial distribution fee imposed | 10 | | under Section 3-815.1 of the Illinois Vehicle Code; and | 11 | | (iii) that are primarily used for commercial purposes. | 12 | | Through June 30, 2005, this
exemption applies to repair | 13 | | and replacement parts added
after the
initial purchase of | 14 | | such a motor vehicle if that motor vehicle is used in a
| 15 | | manner that
would qualify for the rolling stock exemption | 16 | | otherwise provided for in this
Act. For purposes of this | 17 | | paragraph, "used for commercial purposes" means the | 18 | | transportation of persons or property in furtherance of | 19 | | any commercial or industrial enterprise whether for-hire | 20 | | or not.
| 21 | | (13) Proceeds from sales to owners, lessors, or
| 22 | | shippers of
tangible personal property that is utilized by | 23 | | interstate carriers for
hire for use as rolling stock | 24 | | moving in interstate commerce
and equipment operated by a | 25 | | telecommunications provider, licensed as a
common carrier | 26 | | by the Federal Communications Commission, which is
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| 1 | | permanently installed in or affixed to aircraft moving in | 2 | | interstate commerce.
| 3 | | (14) Machinery and equipment that will be used by the | 4 | | purchaser, or a
lessee of the purchaser, primarily in the | 5 | | process of manufacturing or
assembling tangible personal | 6 | | property for wholesale or retail sale or
lease, whether | 7 | | the sale or lease is made directly by the manufacturer or | 8 | | by
some other person, whether the materials used in the | 9 | | process are owned by
the manufacturer or some other | 10 | | person, or whether the sale or lease is made
apart from or | 11 | | as an incident to the seller's engaging in the service
| 12 | | occupation of producing machines, tools, dies, jigs, | 13 | | patterns, gauges, or
other similar items of no commercial | 14 | | value on special order for a particular
purchaser. The | 15 | | exemption provided by this paragraph (14) does not include | 16 | | machinery and equipment used in (i) the generation of | 17 | | electricity for wholesale or retail sale; (ii) the | 18 | | generation or treatment of natural or artificial gas for | 19 | | wholesale or retail sale that is delivered to customers | 20 | | through pipes, pipelines, or mains; or (iii) the treatment | 21 | | of water for wholesale or retail sale that is delivered to | 22 | | customers through pipes, pipelines, or mains. The | 23 | | provisions of Public Act 98-583 are declaratory of | 24 | | existing law as to the meaning and scope of this | 25 | | exemption. Beginning on July 1, 2017, the exemption | 26 | | provided by this paragraph (14) includes, but is not |
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| 1 | | limited to, graphic arts machinery and equipment, as | 2 | | defined in paragraph (4) of this Section.
| 3 | | (15) Proceeds of mandatory service charges separately | 4 | | stated on
customers' bills for purchase and consumption of | 5 | | food and beverages, to the
extent that the proceeds of the | 6 | | service charge are in fact turned over as
tips or as a | 7 | | substitute for tips to the employees who participate | 8 | | directly
in preparing, serving, hosting or cleaning up the | 9 | | food or beverage function
with respect to which the | 10 | | service charge is imposed.
| 11 | | (16) Tangible personal property sold to a purchaser if | 12 | | the purchaser is exempt from use tax by operation of | 13 | | federal law. This paragraph is exempt from the provisions | 14 | | of Section 2-70.
| 15 | | (17) Tangible personal property sold to a common | 16 | | carrier by rail or
motor that
receives the physical | 17 | | possession of the property in Illinois and that
transports | 18 | | the property, or shares with another common carrier in the
| 19 | | transportation of the property, out of Illinois on a | 20 | | standard uniform bill
of lading showing the seller of the | 21 | | property as the shipper or consignor of
the property to a | 22 | | destination outside Illinois, for use outside Illinois.
| 23 | | (18) Legal tender, currency, medallions, or gold or | 24 | | silver coinage
issued by the State of Illinois, the | 25 | | government of the United States of
America, or the | 26 | | government of any foreign country, and bullion.
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| 1 | | (19) Until July 1, 2003, oil field exploration, | 2 | | drilling, and production
equipment, including
(i) rigs and | 3 | | parts of rigs, rotary rigs, cable tool
rigs, and workover | 4 | | rigs, (ii) pipe and tubular goods, including casing and
| 5 | | drill strings, (iii) pumps and pump-jack units, (iv) | 6 | | storage tanks and flow
lines, (v) any individual | 7 | | replacement part for oil field exploration,
drilling, and | 8 | | production equipment, and (vi) machinery and equipment | 9 | | purchased
for lease; but
excluding motor vehicles required | 10 | | to be registered under the Illinois
Vehicle Code.
| 11 | | (20) Photoprocessing machinery and equipment, | 12 | | including repair and
replacement parts, both new and used, | 13 | | including that manufactured on
special order, certified by | 14 | | the purchaser to be used primarily for
photoprocessing, | 15 | | and including photoprocessing machinery and equipment
| 16 | | purchased for lease.
| 17 | | (21) Until July 1, 2028, coal and aggregate | 18 | | exploration, mining, off-highway hauling,
processing,
| 19 | | maintenance, and reclamation equipment, including
| 20 | | replacement parts and equipment, and including
equipment | 21 | | purchased for lease, but excluding motor vehicles required | 22 | | to be
registered under the Illinois Vehicle Code. The | 23 | | changes made to this Section by Public Act 97-767 apply on | 24 | | and after July 1, 2003, but no claim for credit or refund | 25 | | is allowed on or after August 16, 2013 (the effective date | 26 | | of Public Act 98-456)
for such taxes paid during the |
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| 1 | | period beginning July 1, 2003 and ending on August 16, | 2 | | 2013 (the effective date of Public Act 98-456).
| 3 | | (22) Until June 30, 2013, fuel and petroleum products | 4 | | sold to or used by an air carrier,
certified by the carrier | 5 | | to be used for consumption, shipment, or storage
in the | 6 | | conduct of its business as an air common carrier, for a | 7 | | flight
destined for or returning from a location or | 8 | | locations
outside the United States without regard to | 9 | | previous or subsequent domestic
stopovers.
| 10 | | Beginning July 1, 2013, fuel and petroleum products | 11 | | sold to or used by an air carrier, certified by the carrier | 12 | | to be used for consumption, shipment, or storage in the | 13 | | conduct of its business as an air common carrier, for a | 14 | | flight that (i) is engaged in foreign trade or is engaged | 15 | | in trade between the United States and any of its | 16 | | possessions and (ii) transports at least one individual or | 17 | | package for hire from the city of origination to the city | 18 | | of final destination on the same aircraft, without regard | 19 | | to a change in the flight number of that aircraft. | 20 | | (23) A transaction in which the purchase order is | 21 | | received by a florist
who is located outside Illinois, but | 22 | | who has a florist located in Illinois
deliver the property | 23 | | to the purchaser or the purchaser's donee in Illinois.
| 24 | | (24) Fuel consumed or used in the operation of ships, | 25 | | barges, or vessels
that are used primarily in or for the | 26 | | transportation of property or the
conveyance of persons |
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| 1 | | for hire on rivers bordering on this State if the
fuel is | 2 | | delivered by the seller to the purchaser's barge, ship, or | 3 | | vessel
while it is afloat upon that bordering river.
| 4 | | (25) Except as provided in item (25-5) of this | 5 | | Section, a
motor vehicle sold in this State to a | 6 | | nonresident even though the
motor vehicle is delivered to | 7 | | the nonresident in this State, if the motor
vehicle is not | 8 | | to be titled in this State, and if a drive-away permit
is | 9 | | issued to the motor vehicle as provided in Section 3-603 | 10 | | of the Illinois
Vehicle Code or if the nonresident | 11 | | purchaser has vehicle registration
plates to transfer to | 12 | | the motor vehicle upon returning to his or her home
state. | 13 | | The issuance of the drive-away permit or having
the
| 14 | | out-of-state registration plates to be transferred is | 15 | | prima facie evidence
that the motor vehicle will not be | 16 | | titled in this State.
| 17 | | (25-5) The exemption under item (25) does not apply if | 18 | | the state in which the motor vehicle will be titled does | 19 | | not allow a reciprocal exemption for a motor vehicle sold | 20 | | and delivered in that state to an Illinois resident but | 21 | | titled in Illinois. The tax collected under this Act on | 22 | | the sale of a motor vehicle in this State to a resident of | 23 | | another state that does not allow a reciprocal exemption | 24 | | shall be imposed at a rate equal to the state's rate of tax | 25 | | on taxable property in the state in which the purchaser is | 26 | | a resident, except that the tax shall not exceed the tax |
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| 1 | | that would otherwise be imposed under this Act. At the | 2 | | time of the sale, the purchaser shall execute a statement, | 3 | | signed under penalty of perjury, of his or her intent to | 4 | | title the vehicle in the state in which the purchaser is a | 5 | | resident within 30 days after the sale and of the fact of | 6 | | the payment to the State of Illinois of tax in an amount | 7 | | equivalent to the state's rate of tax on taxable property | 8 | | in his or her state of residence and shall submit the | 9 | | statement to the appropriate tax collection agency in his | 10 | | or her state of residence. In addition, the retailer must | 11 | | retain a signed copy of the statement in his or her | 12 | | records. Nothing in this item shall be construed to | 13 | | require the removal of the vehicle from this state | 14 | | following the filing of an intent to title the vehicle in | 15 | | the purchaser's state of residence if the purchaser titles | 16 | | the vehicle in his or her state of residence within 30 days | 17 | | after the date of sale. The tax collected under this Act in | 18 | | accordance with this item (25-5) shall be proportionately | 19 | | distributed as if the tax were collected at the 6.25% | 20 | | general rate imposed under this Act.
| 21 | | (25-7) Beginning on July 1, 2007, no tax is imposed | 22 | | under this Act on the sale of an aircraft, as defined in | 23 | | Section 3 of the Illinois Aeronautics Act, if all of the | 24 | | following conditions are met: | 25 | | (1) the aircraft leaves this State within 15 days | 26 | | after the later of either the issuance of the final |
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| 1 | | billing for the sale of the aircraft, or the | 2 | | authorized approval for return to service, completion | 3 | | of the maintenance record entry, and completion of the | 4 | | test flight and ground test for inspection, as | 5 | | required by 14 CFR C.F.R. 91.407; | 6 | | (2) the aircraft is not based or registered in | 7 | | this State after the sale of the aircraft; and | 8 | | (3) the seller retains in his or her books and | 9 | | records and provides to the Department a signed and | 10 | | dated certification from the purchaser, on a form | 11 | | prescribed by the Department, certifying that the | 12 | | requirements of this item (25-7) are met. The | 13 | | certificate must also include the name and address of | 14 | | the purchaser, the address of the location where the | 15 | | aircraft is to be titled or registered, the address of | 16 | | the primary physical location of the aircraft, and | 17 | | other information that the Department may reasonably | 18 | | require. | 19 | | For purposes of this item (25-7): | 20 | | "Based in this State" means hangared, stored, or | 21 | | otherwise used, excluding post-sale customizations as | 22 | | defined in this Section, for 10 or more days in each | 23 | | 12-month period immediately following the date of the sale | 24 | | of the aircraft. | 25 | | "Registered in this State" means an aircraft | 26 | | registered with the Department of Transportation, |
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| 1 | | Aeronautics Division, or titled or registered with the | 2 | | Federal Aviation Administration to an address located in | 3 | | this State. | 4 | | This paragraph (25-7) is exempt from the provisions
of
| 5 | | Section 2-70.
| 6 | | (26) Semen used for artificial insemination of | 7 | | livestock for direct
agricultural production.
| 8 | | (27) Horses, or interests in horses, registered with | 9 | | and meeting the
requirements of any of the
Arabian Horse | 10 | | Club Registry of America, Appaloosa Horse Club, American | 11 | | Quarter
Horse Association, United States
Trotting | 12 | | Association, or Jockey Club, as appropriate, used for
| 13 | | purposes of breeding or racing for prizes. This item (27) | 14 | | is exempt from the provisions of Section 2-70, and the | 15 | | exemption provided for under this item (27) applies for | 16 | | all periods beginning May 30, 1995, but no claim for | 17 | | credit or refund is allowed on or after January 1, 2008 | 18 | | (the effective date of Public Act 95-88)
for such taxes | 19 | | paid during the period beginning May 30, 2000 and ending | 20 | | on January 1, 2008 (the effective date of Public Act | 21 | | 95-88).
| 22 | | (28) Computers and communications equipment utilized | 23 | | for any
hospital
purpose
and equipment used in the | 24 | | diagnosis,
analysis, or treatment of hospital patients | 25 | | sold to a lessor who leases the
equipment, under a lease of | 26 | | one year or longer executed or in effect at the
time of the |
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| 1 | | purchase, to a
hospital
that has been issued an active tax | 2 | | exemption identification number by the
Department under | 3 | | Section 1g of this Act.
| 4 | | (29) Personal property sold to a lessor who leases the
| 5 | | property, under a
lease of one year or longer executed or | 6 | | in effect at the time of the purchase,
to a governmental | 7 | | body
that has been issued an active tax exemption | 8 | | identification number by the
Department under Section 1g | 9 | | of this Act.
| 10 | | (30) Beginning with taxable years ending on or after | 11 | | December
31, 1995
and
ending with taxable years ending on | 12 | | or before December 31, 2004,
personal property that is
| 13 | | donated for disaster relief to be used in a State or | 14 | | federally declared
disaster area in Illinois or bordering | 15 | | Illinois by a manufacturer or retailer
that is registered | 16 | | in this State to a corporation, society, association,
| 17 | | foundation, or institution that has been issued a sales | 18 | | tax exemption
identification number by the Department that | 19 | | assists victims of the disaster
who reside within the | 20 | | declared disaster area.
| 21 | | (31) Beginning with taxable years ending on or after | 22 | | December
31, 1995 and
ending with taxable years ending on | 23 | | or before December 31, 2004, personal
property that is | 24 | | used in the performance of infrastructure repairs in this
| 25 | | State, including but not limited to municipal roads and | 26 | | streets, access roads,
bridges, sidewalks, waste disposal |
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| 1 | | systems, water and sewer line extensions,
water | 2 | | distribution and purification facilities, storm water | 3 | | drainage and
retention facilities, and sewage treatment | 4 | | facilities, resulting from a State
or federally declared | 5 | | disaster in Illinois or bordering Illinois when such
| 6 | | repairs are initiated on facilities located in the | 7 | | declared disaster area
within 6 months after the disaster.
| 8 | | (32) Beginning July 1, 1999, game or game birds sold | 9 | | at a "game breeding
and
hunting preserve area" as that | 10 | | term is used
in the
Wildlife Code. This paragraph is | 11 | | exempt from the provisions
of
Section 2-70.
| 12 | | (33) A motor vehicle, as that term is defined in | 13 | | Section 1-146
of the
Illinois Vehicle Code, that is | 14 | | donated to a corporation, limited liability
company, | 15 | | society, association, foundation, or institution that is | 16 | | determined by
the Department to be organized and operated | 17 | | exclusively for educational
purposes. For purposes of this | 18 | | exemption, "a corporation, limited liability
company, | 19 | | society, association, foundation, or institution organized | 20 | | and
operated
exclusively for educational purposes" means | 21 | | all tax-supported public schools,
private schools that | 22 | | offer systematic instruction in useful branches of
| 23 | | learning by methods common to public schools and that | 24 | | compare favorably in
their scope and intensity with the | 25 | | course of study presented in tax-supported
schools, and | 26 | | vocational or technical schools or institutes organized |
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| 1 | | and
operated exclusively to provide a course of study of | 2 | | not less than 6 weeks
duration and designed to prepare | 3 | | individuals to follow a trade or to pursue a
manual, | 4 | | technical, mechanical, industrial, business, or commercial
| 5 | | occupation.
| 6 | | (34) Beginning January 1, 2000, personal property, | 7 | | including food, purchased
through fundraising events for | 8 | | the benefit of a public or private elementary or
secondary | 9 | | school, a group of those schools, or one or more school | 10 | | districts if
the events are sponsored by an entity | 11 | | recognized by the school district that
consists primarily | 12 | | of volunteers and includes parents and teachers of the
| 13 | | school children. This paragraph does not apply to | 14 | | fundraising events (i) for
the benefit of private home | 15 | | instruction or (ii) for which the fundraising
entity | 16 | | purchases the personal property sold at the events from | 17 | | another
individual or entity that sold the property for | 18 | | the purpose of resale by the
fundraising entity and that | 19 | | profits from the sale to the fundraising entity.
This | 20 | | paragraph is exempt from the provisions of Section 2-70.
| 21 | | (35) Beginning January 1, 2000 and through December | 22 | | 31, 2001, new or used
automatic vending machines that | 23 | | prepare and serve hot food and beverages,
including | 24 | | coffee, soup, and other items, and replacement parts for | 25 | | these
machines. Beginning January 1, 2002 and through June | 26 | | 30, 2003, machines
and parts for machines used in
|
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| 1 | | commercial, coin-operated amusement and vending business | 2 | | if a use or occupation
tax is paid on the gross receipts | 3 | | derived from the use of the commercial,
coin-operated | 4 | | amusement and vending machines. This paragraph is exempt | 5 | | from
the provisions of Section 2-70.
| 6 | | (35-5) Beginning August 23, 2001 and through June 30, | 7 | | 2016, food for human consumption that is to be consumed | 8 | | off
the premises where it is sold (other than alcoholic | 9 | | beverages, soft drinks,
and food that has been prepared | 10 | | for immediate consumption) and prescription
and | 11 | | nonprescription medicines, drugs, medical appliances, and | 12 | | insulin, urine
testing materials, syringes, and needles | 13 | | used by diabetics, for human use, when
purchased for use | 14 | | by a person receiving medical assistance under Article V | 15 | | of
the Illinois Public Aid Code who resides in a licensed | 16 | | long-term care facility,
as defined in the Nursing Home | 17 | | Care Act, or a licensed facility as defined in the ID/DD | 18 | | Community Care Act, the MC/DD Act, or the Specialized | 19 | | Mental Health Rehabilitation Act of 2013.
| 20 | | (36) Beginning August 2, 2001, computers and | 21 | | communications equipment
utilized for any hospital purpose | 22 | | and equipment used in the diagnosis,
analysis, or | 23 | | treatment of hospital patients sold to a lessor who leases | 24 | | the
equipment, under a lease of one year or longer | 25 | | executed or in effect at the
time of the purchase, to a | 26 | | hospital that has been issued an active tax
exemption |
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| 1 | | identification number by the Department under Section 1g | 2 | | of this Act.
This paragraph is exempt from the provisions | 3 | | of Section 2-70.
| 4 | | (37) Beginning August 2, 2001, personal property sold | 5 | | to a lessor who
leases the property, under a lease of one | 6 | | year or longer executed or in effect
at the time of the | 7 | | purchase, to a governmental body that has been issued an
| 8 | | active tax exemption identification number by the | 9 | | Department under Section 1g
of this Act. This paragraph is | 10 | | exempt from the provisions of Section 2-70.
| 11 | | (38) Beginning on January 1, 2002 and through June 30, | 12 | | 2016, tangible personal property purchased
from an | 13 | | Illinois retailer by a taxpayer engaged in centralized | 14 | | purchasing
activities in Illinois who will, upon receipt | 15 | | of the property in Illinois,
temporarily store the | 16 | | property in Illinois (i) for the purpose of subsequently
| 17 | | transporting it outside this State for use or consumption | 18 | | thereafter solely
outside this State or (ii) for the | 19 | | purpose of being processed, fabricated, or
manufactured | 20 | | into, attached to, or incorporated into other tangible | 21 | | personal
property to be transported outside this State and | 22 | | thereafter used or consumed
solely outside this State. The | 23 | | Director of Revenue shall, pursuant to rules
adopted in | 24 | | accordance with the Illinois Administrative Procedure Act, | 25 | | issue a
permit to any taxpayer in good standing with the | 26 | | Department who is eligible for
the exemption under this |
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| 1 | | paragraph (38). The permit issued under
this paragraph | 2 | | (38) shall authorize the holder, to the extent and
in the | 3 | | manner specified in the rules adopted under this Act, to | 4 | | purchase
tangible personal property from a retailer exempt | 5 | | from the taxes imposed by
this Act. Taxpayers shall | 6 | | maintain all necessary books and records to
substantiate | 7 | | the use and consumption of all such tangible personal | 8 | | property
outside of the State of Illinois.
| 9 | | (39) Beginning January 1, 2008, tangible personal | 10 | | property used in the construction or maintenance of a | 11 | | community water supply, as defined under Section 3.145 of | 12 | | the Environmental Protection Act, that is operated by a | 13 | | not-for-profit corporation that holds a valid water supply | 14 | | permit issued under Title IV of the Environmental | 15 | | Protection Act. This paragraph is exempt from the | 16 | | provisions of Section 2-70.
| 17 | | (40) Beginning January 1, 2010 and continuing through | 18 | | December 31, 2024, materials, parts, equipment, | 19 | | components, and furnishings incorporated into or upon an | 20 | | aircraft as part of the modification, refurbishment, | 21 | | completion, replacement, repair, or maintenance of the | 22 | | aircraft. This exemption includes consumable supplies used | 23 | | in the modification, refurbishment, completion, | 24 | | replacement, repair, and maintenance of aircraft, but | 25 | | excludes any materials, parts, equipment, components, and | 26 | | consumable supplies used in the modification, replacement, |
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| 1 | | repair, and maintenance of aircraft engines or power | 2 | | plants, whether such engines or power plants are installed | 3 | | or uninstalled upon any such aircraft. "Consumable | 4 | | supplies" include, but are not limited to, adhesive, tape, | 5 | | sandpaper, general purpose lubricants, cleaning solution, | 6 | | latex gloves, and protective films. This exemption applies | 7 | | only to the sale of qualifying tangible personal property | 8 | | to persons who modify, refurbish, complete, replace, or | 9 | | maintain an aircraft and who (i) hold an Air Agency | 10 | | Certificate and are empowered to operate an approved | 11 | | repair station by the Federal Aviation Administration, | 12 | | (ii) have a Class IV Rating, and (iii) conduct operations | 13 | | in accordance with Part 145 of the Federal Aviation | 14 | | Regulations. The exemption does not include aircraft | 15 | | operated by a commercial air carrier providing scheduled | 16 | | passenger air service pursuant to authority issued under | 17 | | Part 121 or Part 129 of the Federal Aviation Regulations. | 18 | | The changes made to this paragraph (40) by Public Act | 19 | | 98-534 are declarative of existing law. It is the intent | 20 | | of the General Assembly that the exemption under this | 21 | | paragraph (40) applies continuously from January 1, 2010 | 22 | | through December 31, 2024; however, no claim for credit or | 23 | | refund is allowed for taxes paid as a result of the | 24 | | disallowance of this exemption on or after January 1, 2015 | 25 | | and prior to February 5, 2020 ( the effective date of | 26 | | Public Act 101-629) this amendatory Act of the 101st |
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| 1 | | 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 and through December | 18 | | 31, 2026, menstrual pads, 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 Public Act 101-31 | 10 | | this amendatory Act of the 101st General Assembly been in | 11 | | effect, may apply for and obtain an exemption for | 12 | | subsequent purchases of computer equipment or enabling | 13 | | software purchased or leased to upgrade, supplement, or | 14 | | replace computer equipment or enabling software purchased | 15 | | or leased in the original investment that would have | 16 | | qualified. | 17 | | The Department of Commerce and Economic Opportunity | 18 | | shall grant a certificate of exemption under this item | 19 | | (44) to qualified data centers as defined by Section | 20 | | 605-1025 of the Department of Commerce and Economic | 21 | | Opportunity Law of the
Civil Administrative Code of | 22 | | Illinois. | 23 | | For the purposes of this item (44): | 24 | | "Data center" means a building or a series of | 25 | | buildings rehabilitated or constructed to house | 26 | | working servers in one physical location or multiple |
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| 1 | | sites within the State of Illinois. | 2 | | "Qualified tangible personal property" means: | 3 | | electrical systems and equipment; climate control and | 4 | | chilling equipment and systems; mechanical systems and | 5 | | equipment; monitoring and secure systems; emergency | 6 | | generators; hardware; computers; servers; data storage | 7 | | devices; network connectivity equipment; racks; | 8 | | cabinets; telecommunications cabling infrastructure; | 9 | | raised floor systems; peripheral components or | 10 | | systems; software; mechanical, electrical, or plumbing | 11 | | systems; battery systems; cooling systems and towers; | 12 | | temperature control systems; other cabling; and other | 13 | | data center infrastructure equipment and systems | 14 | | necessary to operate qualified tangible personal | 15 | | property, including fixtures; and component parts of | 16 | | any of the foregoing, including installation, | 17 | | maintenance, repair, refurbishment, and replacement of | 18 | | qualified tangible personal property to generate, | 19 | | transform, transmit, distribute, or manage electricity | 20 | | necessary to operate qualified tangible personal | 21 | | property; and all other tangible personal property | 22 | | that is essential to the operations of a computer data | 23 | | center. The term "qualified tangible personal | 24 | | property" also includes building materials physically | 25 | | incorporated into the qualifying data center. To | 26 | | document the exemption allowed under this Section, the |
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| 1 | | retailer must obtain from the purchaser a copy of the | 2 | | certificate of eligibility issued by the Department of | 3 | | Commerce and Economic Opportunity. | 4 | | This item (44) is exempt from the provisions of | 5 | | Section 2-70. | 6 | | (45) Beginning January 1, 2020 and through December | 7 | | 31, 2020, sales of tangible personal property made by a | 8 | | marketplace seller over a marketplace for which tax is due | 9 | | under this Act but for which use tax has been collected and | 10 | | remitted to the Department by a marketplace facilitator | 11 | | under Section 2d of the Use Tax Act are exempt from tax | 12 | | under this Act. A marketplace seller claiming this | 13 | | exemption shall maintain books and records demonstrating | 14 | | that the use tax on such sales has been collected and | 15 | | remitted by a marketplace facilitator. Marketplace sellers | 16 | | that have properly remitted tax under this Act on such | 17 | | sales may file a claim for credit as provided in Section 6 | 18 | | of this Act. No claim is allowed, however, for such taxes | 19 | | for which a credit or refund has been issued to the | 20 | | marketplace facilitator under the Use Tax Act, or for | 21 | | which the marketplace facilitator has filed a claim for | 22 | | credit or refund under the Use Tax Act. | 23 | | (46) Beginning July 1, 2022, breast pumps, breast pump | 24 | | collection and storage supplies, and breast pump kits. | 25 | | This item (46) is exempt from the provisions of Section | 26 | | 2-70. As used in this item (46): |
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| 1 | | "Breast pump" means an electrically controlled or | 2 | | manually controlled pump device designed or marketed to be | 3 | | used to express milk from a human breast during lactation, | 4 | | including the pump device and any battery, AC adapter, or | 5 | | other power supply unit that is used to power the pump | 6 | | device and is packaged and sold with the pump device at the | 7 | | time of sale. | 8 | | "Breast pump collection and storage supplies" means | 9 | | items of tangible personal property designed or marketed | 10 | | to be used in conjunction with a breast pump to collect | 11 | | milk expressed from a human breast and to store collected | 12 | | milk until it is ready for consumption. | 13 | | "Breast pump collection and storage supplies" | 14 | | includes, but is not limited to: breast shields and breast | 15 | | shield connectors; breast pump tubes and tubing adapters; | 16 | | breast pump valves and membranes; backflow protectors and | 17 | | backflow protector adaptors; bottles and bottle caps | 18 | | specific to the operation of the breast pump; and breast | 19 | | milk storage bags. | 20 | | "Breast pump collection and storage supplies" does not | 21 | | include: (1) bottles and bottle caps not specific to the | 22 | | operation of the breast pump; (2) breast pump travel bags | 23 | | and other similar carrying accessories, including ice | 24 | | packs, labels, and other similar products; (3) breast pump | 25 | | cleaning supplies; (4) nursing bras, bra pads, breast | 26 | | shells, and other similar products; and (5) creams, |
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| 1 | | ointments, and other similar products that relieve | 2 | | breastfeeding-related symptoms or conditions of the | 3 | | breasts or nipples, unless sold as part of a breast pump | 4 | | kit that is pre-packaged by the breast pump manufacturer | 5 | | or distributor. | 6 | | "Breast pump kit" means a kit that: (1) contains no | 7 | | more than a breast pump, breast pump collection and | 8 | | storage supplies, a rechargeable battery for operating the | 9 | | breast pump, a breastmilk cooler, bottle stands, ice | 10 | | packs, and a breast pump carrying case; and (2) is | 11 | | pre-packaged as a breast pump kit by the breast pump | 12 | | manufacturer or distributor. | 13 | | (47) (46) Tangible personal property sold by or on | 14 | | behalf of the State Treasurer pursuant to the Revised | 15 | | Uniform Unclaimed Property Act. This item (47) (46) is | 16 | | exempt from the provisions of Section 2-70. | 17 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | 18 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. | 19 | | 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; | 20 | | 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, | 21 | | eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
| 22 | | Section 20. The Automobile Renting Occupation and Use Tax | 23 | | Act is amended by changing Section 2 as follows:
| 24 | | (35 ILCS 155/2) (from Ch. 120, par. 1702)
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| 1 | | Sec. 2. Definitions. "Renting" means any transfer of the | 2 | | possession
or right to possession of an automobile to a user | 3 | | for a valuable consideration
for a period of one year or less.
| 4 | | "Renting" does not include making a charge for the use of | 5 | | an
automobile where the rentor, either himself or through an | 6 | | agent, furnishes a
service of operating an automobile so that | 7 | | the rentor remains in possession of
the automobile, because | 8 | | this does not constitute a transfer of possession
or right to | 9 | | possession of the automobile.
| 10 | | "Renting" does not include the making of a charge by an
| 11 | | automobile dealer for the use of an automobile as a | 12 | | demonstrator in connection
with the dealer's business of | 13 | | selling, where the charge is merely made to
recover the costs | 14 | | of operating the automobile as a demonstrator and is not
| 15 | | intended as a rental or leasing charge in the ordinary sense.
| 16 | | "Renting" does not include peer-to-peer car sharing, as
| 17 | | defined in Section 5 of the Car-Sharing Program Act. | 18 | | "Automobile" means (1) any motor vehicle of the first | 19 | | division, or (2) a motor vehicle
of the second division which: | 20 | | (A) is a self-contained motor vehicle designed or
permanently | 21 | | converted to provide living quarters for recreational, camping | 22 | | or
travel use, with direct walk through access to the living | 23 | | quarters from the
driver's seat; (B) is of the van
| 24 | | configuration designed for the transportation of not less than | 25 | | 7 nor more than
16 passengers, as defined in Section 1-146 of | 26 | | the Illinois Vehicle
Code; or (C) has a Gross Vehicle Weight |
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| 1 | | Rating, as defined in Section 1-124.5 of the Illinois Vehicle | 2 | | Code, of 8,000 pounds or less.
| 3 | | "Department" means the Department of Revenue.
| 4 | | "Person" means any natural individual, firm, partnership, | 5 | | association,
joint stock company, joint adventure, public or | 6 | | private corporation, limited
liability company, or a receiver, | 7 | | executor, trustee, conservator or other
representative | 8 | | appointed by order of any court.
| 9 | | "Rentor" means any person, firm, corporation or | 10 | | association engaged in
the business of renting or leasing | 11 | | automobiles to users. For this purpose,
the objective of | 12 | | making a profit is not necessary to make the renting activity
a | 13 | | business.
| 14 | | "Rentor" does not include a car-sharing program or a
| 15 | | shared-vehicle owner, as defined in Section 5 of the
| 16 | | Car-Sharing Program Act. | 17 | | "Rentee" means any user to whom the possession, or the | 18 | | right to possession,
of an automobile is transferred for a | 19 | | valuable consideration for a period
of one year or less, | 20 | | whether paid for by the "rentee" or by someone else.
| 21 | | "Rentee" does not include a shared-vehicle driver, as
| 22 | | defined in Section 5 of the Car-Sharing Program Act. | 23 | | "Gross receipts" from the renting of tangible personal | 24 | | property or
"rent" means the total rental price or leasing | 25 | | price. In the case of
rental transactions in which the | 26 | | consideration is paid to the rentor on an
installment basis, |
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| 1 | | the amounts of such payments shall be included by the rentor
in | 2 | | gross receipts or rent only as and when payments are received | 3 | | by the rentor.
| 4 | | "Gross receipts" does not include receipts received by an | 5 | | automobile dealer
from a manufacturer or service contract | 6 | | provider
for the use of an automobile by a person while that | 7 | | person's automobile is
being repaired by that automobile | 8 | | dealer and the repair is made pursuant to a
manufacturer's | 9 | | warranty or a service contract where a manufacturer or service
| 10 | | contract provider reimburses that automobile dealer pursuant | 11 | | to a
manufacturer's warranty or a service contract and the | 12 | | reimbursement is merely
made
to recover the costs of operating | 13 | | the automobile as a loaner vehicle.
| 14 | | "Rental price" means the consideration for renting or | 15 | | leasing an automobile
valued in money, whether received in | 16 | | money or otherwise, including cash
credits, property and | 17 | | services, and shall be determined without any deduction
on | 18 | | account of the cost of the property rented, the cost of | 19 | | materials used,
labor or service cost, or any other expense | 20 | | whatsoever, but does not
include charges that are added by a | 21 | | rentor on account of the
rentor's tax liability under this Act | 22 | | or on account of the rentor's duty
to collect, from the rentee, | 23 | | the tax that is imposed by Section 4 of this Act.
The phrase | 24 | | "rental price" does not include compensation paid to a rentor | 25 | | by a
rentee in consideration of the waiver by the rentor of any | 26 | | right of action or
claim against the rentee for loss or damage |
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| 1 | | to the automobile
rented and also does not include a | 2 | | separately stated charge for insurance or
recovery of | 3 | | refueling costs or other separately stated charges that are | 4 | | not for
the use of tangible personal property.
| 5 | | "Rental price" does not include consideration paid for
| 6 | | peer-to-peer car sharing to a shared-vehicle owner or a
| 7 | | car-sharing program, as those terms are defined in Section 5
| 8 | | of the Car-Sharing Program Act. | 9 | | (Source: P.A. 98-574, eff. 1-1-14.)".
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