Illinois House Bill HB3059 Introduced / Bill

                    103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3059 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:  35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5   Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers are exempt from the taxes imposed under the Acts. Effective immediately.  LRB103 27006 HLH 53373 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3059 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:  35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5  Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers are exempt from the taxes imposed under the Acts. Effective immediately.  LRB103 27006 HLH 53373 b     LRB103 27006 HLH 53373 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3059 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers are exempt from the taxes imposed under the Acts. Effective immediately.
LRB103 27006 HLH 53373 b     LRB103 27006 HLH 53373 b
    LRB103 27006 HLH 53373 b
A BILL FOR
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  HB3059  LRB103 27006 HLH 53373 b
1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Section
5  3-5 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use of the following tangible
8  personal property is exempt from the tax imposed by this Act:
9  (1) Personal property purchased from a corporation,
10  society, association, foundation, institution, or
11  organization, other than a limited liability company, that is
12  organized and operated as a not-for-profit service enterprise
13  for the benefit of persons 65 years of age or older if the
14  personal property was not purchased by the enterprise for the
15  purpose of resale by the enterprise.
16  (2) Personal property purchased by a not-for-profit
17  Illinois county fair association for use in conducting,
18  operating, or promoting the county fair.
19  (3) Personal property purchased by a not-for-profit arts
20  or cultural organization that establishes, by proof required
21  by the Department by rule, that it has received an exemption
22  under Section 501(c)(3) of the Internal Revenue Code and that
23  is organized and operated primarily for the presentation or

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3059 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers are exempt from the taxes imposed under the Acts. Effective immediately.
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    LRB103 27006 HLH 53373 b
A BILL FOR

 

 

35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5



    LRB103 27006 HLH 53373 b

 

 



 

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1  support of arts or cultural programming, activities, or
2  services. These organizations include, but are not limited to,
3  music and dramatic arts organizations such as symphony
4  orchestras and theatrical groups, arts and cultural service
5  organizations, local arts councils, visual arts organizations,
6  and media arts organizations. On and after July 1, 2001 (the
7  effective date of Public Act 92-35), however, an entity
8  otherwise eligible for this exemption shall not make tax-free
9  purchases unless it has an active identification number issued
10  by the Department.
11  (4) Personal property purchased by a governmental body, by
12  a corporation, society, association, foundation, or
13  institution organized and operated exclusively for charitable,
14  religious, or educational purposes, or by a not-for-profit
15  corporation, society, association, foundation, institution, or
16  organization that has no compensated officers or employees and
17  that is organized and operated primarily for the recreation of
18  persons 55 years of age or older. A limited liability company
19  may qualify for the exemption under this paragraph only if the
20  limited liability company is organized and operated
21  exclusively for educational purposes. On and after July 1,
22  1987, however, no entity otherwise eligible for this exemption
23  shall make tax-free purchases unless it has an active
24  exemption identification number issued by the Department.
25  (5) Until July 1, 2003, a passenger car that is a
26  replacement vehicle to the extent that the purchase price of

 

 

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1  the car is subject to the Replacement Vehicle Tax.
2  (6) Until July 1, 2003 and beginning again on September 1,
3  2004 through August 30, 2014, graphic arts machinery and
4  equipment, including repair and replacement parts, both new
5  and used, and including that manufactured on special order,
6  certified by the purchaser to be used primarily for graphic
7  arts production, and including machinery and equipment
8  purchased for lease. Equipment includes chemicals or chemicals
9  acting as catalysts but only if the chemicals or chemicals
10  acting as catalysts effect a direct and immediate change upon
11  a graphic arts product. Beginning on July 1, 2017, graphic
12  arts machinery and equipment is included in the manufacturing
13  and assembling machinery and equipment exemption under
14  paragraph (18).
15  (7) Farm chemicals.
16  (8) Legal tender, currency, medallions, or gold or silver
17  coinage issued by the State of Illinois, the government of the
18  United States of America, or the government of any foreign
19  country, and bullion.
20  (9) Personal property purchased from a teacher-sponsored
21  student organization affiliated with an elementary or
22  secondary school located in Illinois.
23  (10) A motor vehicle that is used for automobile renting,
24  as defined in the Automobile Renting Occupation and Use Tax
25  Act.
26  (11) Farm machinery and equipment, both new and used,

 

 

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

 

 

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

 

 

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

 

 

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1  excluding motor vehicles required to be registered under the
2  Illinois Vehicle Code. The changes made to this Section by
3  Public Act 97-767 apply on and after July 1, 2003, but no claim
4  for credit or refund is allowed on or after August 16, 2013
5  (the effective date of Public Act 98-456) for such taxes paid
6  during the period beginning July 1, 2003 and ending on August
7  16, 2013 (the effective date of Public Act 98-456).
8  (17) Until July 1, 2003, distillation machinery and
9  equipment, sold as a unit or kit, assembled or installed by the
10  retailer, certified by the user to be used only for the
11  production of ethyl alcohol that will be used for consumption
12  as motor fuel or as a component of motor fuel for the personal
13  use of the user, and not subject to sale or resale.
14  (18) Manufacturing and assembling machinery and equipment
15  used primarily in the process of manufacturing or assembling
16  tangible personal property for wholesale or retail sale or
17  lease, whether that sale or lease is made directly by the
18  manufacturer or by some other person, whether the materials
19  used in the process are owned by the manufacturer or some other
20  person, or whether that sale or lease is made apart from or as
21  an incident to the seller's engaging in the service occupation
22  of producing machines, tools, dies, jigs, patterns, gauges, or
23  other similar items of no commercial value on special order
24  for a particular purchaser. The exemption provided by this
25  paragraph (18) includes production related tangible personal
26  property, as defined in Section 3-50, purchased on or after

 

 

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1  July 1, 2019. The exemption provided by this paragraph (18)
2  does not include machinery and equipment used in (i) the
3  generation of electricity for wholesale or retail sale; (ii)
4  the generation or treatment of natural or artificial gas for
5  wholesale or retail sale that is delivered to customers
6  through pipes, pipelines, or mains; or (iii) the treatment of
7  water for wholesale or retail sale that is delivered to
8  customers through pipes, pipelines, or mains. The provisions
9  of Public Act 98-583 are declaratory of existing law as to the
10  meaning and scope of this exemption. Beginning on July 1,
11  2017, the exemption provided by this paragraph (18) includes,
12  but is not limited to, graphic arts machinery and equipment,
13  as defined in paragraph (6) of this Section.
14  (19) Personal property delivered to a purchaser or
15  purchaser's donee inside Illinois when the purchase order for
16  that personal property was received by a florist located
17  outside Illinois who has a florist located inside Illinois
18  deliver the personal property.
19  (20) Semen used for artificial insemination of livestock
20  for direct agricultural production.
21  (21) Horses, or interests in horses, registered with and
22  meeting the requirements of any of the Arabian Horse Club
23  Registry of America, Appaloosa Horse Club, American Quarter
24  Horse Association, United States Trotting Association, or
25  Jockey Club, as appropriate, used for purposes of breeding or
26  racing for prizes. This item (21) is exempt from the

 

 

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1  provisions of Section 3-90, and the exemption provided for
2  under this item (21) applies for all periods beginning May 30,
3  1995, but no claim for credit or refund is allowed on or after
4  January 1, 2008 for such taxes paid during the period
5  beginning May 30, 2000 and ending on January 1, 2008.
6  (22) Computers and communications equipment utilized for
7  any hospital purpose and equipment used in the diagnosis,
8  analysis, or treatment of hospital patients purchased by a
9  lessor who leases the equipment, under a lease of one year or
10  longer executed or in effect at the time the lessor would
11  otherwise be subject to the tax imposed by this Act, to a
12  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 non-exempt 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 non-qualifying 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.
3  (23) Personal property purchased by a lessor who leases
4  the property, under a lease of one year or longer executed or
5  in effect at the time the lessor would otherwise be subject to
6  the tax imposed by this Act, to a governmental body that has
7  been issued an active sales tax exemption identification
8  number by the Department under Section 1g of the Retailers'
9  Occupation Tax Act. If the property is leased in a manner that
10  does not qualify for this exemption or used in any other
11  non-exempt manner, the lessor shall be liable for the tax
12  imposed under this Act or the Service Use Tax Act, as the case
13  may be, based on the fair market value of the property at the
14  time the non-qualifying use occurs. No lessor shall collect or
15  attempt to collect an amount (however designated) that
16  purports to reimburse that lessor for the tax imposed by this
17  Act or the Service Use Tax Act, as the case may be, if the tax
18  has not been paid by the lessor. If a lessor improperly
19  collects any such amount from the lessee, the lessee shall
20  have a legal right to claim a refund of that amount from the
21  lessor. If, however, that amount is not refunded to the lessee
22  for any reason, the lessor is liable to pay that amount to the
23  Department.
24  (24) Beginning with taxable years ending on or after
25  December 31, 1995 and ending with taxable years ending on or
26  before December 31, 2004, personal property that is donated

 

 

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

 

 

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

 

 

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1  entity purchases the personal property sold at the events from
2  another individual or entity that sold the property for the
3  purpose of resale by the fundraising entity and that profits
4  from the sale to the fundraising entity. This paragraph is
5  exempt from the provisions of Section 3-90.
6  (29) Beginning January 1, 2000 and through December 31,
7  2001, new or used automatic vending machines that prepare and
8  serve hot food and beverages, including coffee, soup, and
9  other items, and replacement parts for these machines.
10  Beginning January 1, 2002 and through June 30, 2003, machines
11  and parts for machines used in commercial, coin-operated
12  amusement and vending business if a use or occupation tax is
13  paid on the gross receipts derived from the use of the
14  commercial, coin-operated amusement and vending machines. This
15  paragraph is exempt from the provisions of Section 3-90.
16  (30) Beginning January 1, 2001 and through June 30, 2016,
17  food for human consumption that is to be consumed off the
18  premises where it is sold (other than alcoholic beverages,
19  soft drinks, and food that has been prepared for immediate
20  consumption) and prescription and nonprescription medicines,
21  drugs, medical appliances, and insulin, urine testing
22  materials, syringes, and needles used by diabetics, for human
23  use, when purchased for use by a person receiving medical
24  assistance under Article V of the Illinois Public Aid Code who
25  resides in a licensed long-term care facility, as defined in
26  the Nursing Home Care Act, or in a licensed facility as defined

 

 

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

 

 

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

 

 

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1  with a gross vehicle weight in excess of 8,000 pounds and that
2  are subject to the commercial distribution fee imposed under
3  Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4  July 1, 2004 and through June 30, 2005, the use in this State
5  of motor vehicles of the second division: (i) with a gross
6  vehicle weight rating in excess of 8,000 pounds; (ii) that are
7  subject to the commercial distribution fee imposed under
8  Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9  are primarily used for commercial purposes. Through June 30,
10  2005, this exemption applies to repair and replacement parts
11  added after the initial purchase of such a motor vehicle if
12  that motor vehicle is used in a manner that would qualify for
13  the rolling stock exemption otherwise provided for in this
14  Act. For purposes of this paragraph, the term "used for
15  commercial purposes" means the transportation of persons or
16  property in furtherance of any commercial or industrial
17  enterprise, whether for-hire or not.
18  (34) Beginning January 1, 2008, tangible personal property
19  used in the construction or maintenance of a community water
20  supply, as defined under Section 3.145 of the Environmental
21  Protection Act, that is operated by a not-for-profit
22  corporation that holds a valid water supply permit issued
23  under Title IV of the Environmental Protection Act. This
24  paragraph is exempt from the provisions of Section 3-90.
25  (35) Beginning January 1, 2010 and continuing through
26  December 31, 2024, materials, parts, equipment, components,

 

 

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1  and furnishings incorporated into or upon an aircraft as part
2  of the modification, refurbishment, completion, replacement,
3  repair, or maintenance of the aircraft. This exemption
4  includes consumable supplies used in the modification,
5  refurbishment, completion, replacement, repair, and
6  maintenance of aircraft, but excludes any materials, parts,
7  equipment, components, and consumable supplies used in the
8  modification, replacement, repair, and maintenance of aircraft
9  engines or power plants, whether such engines or power plants
10  are installed or uninstalled upon any such aircraft.
11  "Consumable supplies" include, but are not limited to,
12  adhesive, tape, sandpaper, general purpose lubricants,
13  cleaning solution, latex gloves, and protective films. This
14  exemption applies only to the use of qualifying tangible
15  personal property by persons who modify, refurbish, complete,
16  repair, replace, or maintain aircraft and who (i) hold an Air
17  Agency Certificate and are empowered to operate an approved
18  repair station by the Federal Aviation Administration, (ii)
19  have a Class IV Rating, and (iii) conduct operations in
20  accordance with Part 145 of the Federal Aviation Regulations.
21  The exemption does not include aircraft operated by a
22  commercial air carrier providing scheduled passenger air
23  service pursuant to authority issued under Part 121 or Part
24  129 of the Federal Aviation Regulations. The changes made to
25  this paragraph (35) by Public Act 98-534 are declarative of
26  existing law. It is the intent of the General Assembly that the

 

 

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1  exemption under this paragraph (35) applies continuously from
2  January 1, 2010 through December 31, 2024; however, no claim
3  for credit or refund is allowed for taxes paid as a result of
4  the disallowance of this exemption on or after January 1, 2015
5  and prior to February 5, 2020 (the effective date of Public Act
6  101-629) this amendatory Act of the 101st General Assembly.
7  (36) Tangible personal property purchased by a
8  public-facilities corporation, as described in Section
9  11-65-10 of the Illinois Municipal Code, for purposes of
10  constructing or furnishing a municipal convention hall, but
11  only if the legal title to the municipal convention hall is
12  transferred to the municipality without any further
13  consideration by or on behalf of the municipality at the time
14  of the completion of the municipal convention hall or upon the
15  retirement or redemption of any bonds or other debt
16  instruments issued by the public-facilities corporation in
17  connection with the development of the municipal convention
18  hall. This exemption includes existing public-facilities
19  corporations as provided in Section 11-65-25 of the Illinois
20  Municipal Code. This paragraph is exempt from the provisions
21  of Section 3-90.
22  (37) Beginning January 1, 2017 and through December 31,
23  2026, menstrual pads, tampons, and menstrual cups.
24  (38) Merchandise that is subject to the Rental Purchase
25  Agreement Occupation and Use Tax. The purchaser must certify
26  that the item is purchased to be rented subject to a rental

 

 

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1  purchase agreement, as defined in the Rental Purchase
2  Agreement Act, and provide proof of registration under the
3  Rental Purchase Agreement Occupation and Use Tax Act. This
4  paragraph is exempt from the provisions of Section 3-90.
5  (39) Tangible personal property purchased by a purchaser
6  who is exempt from the tax imposed by this Act by operation of
7  federal law. This paragraph is exempt from the provisions of
8  Section 3-90.
9  (40) Qualified tangible personal property used in the
10  construction or operation of a data center that has been
11  granted a certificate of exemption by the Department of
12  Commerce and Economic Opportunity, whether that tangible
13  personal property is purchased by the owner, operator, or
14  tenant of the data center or by a contractor or subcontractor
15  of the owner, operator, or tenant. Data centers that would
16  have qualified for a certificate of exemption prior to January
17  1, 2020 had Public Act 101-31 been in effect may apply for and
18  obtain an exemption for subsequent purchases of computer
19  equipment or enabling software purchased or leased to upgrade,
20  supplement, or replace computer equipment or enabling software
21  purchased or leased in the original investment that would have
22  qualified.
23  The Department of Commerce and Economic Opportunity shall
24  grant a certificate of exemption under this item (40) to
25  qualified data centers as defined by Section 605-1025 of the
26  Department of Commerce and Economic Opportunity Law of the

 

 

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

 

 

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1  data center. The term "qualified tangible personal
2  property" also includes building materials physically
3  incorporated in to the qualifying data center. To document
4  the exemption allowed under this Section, the retailer
5  must obtain from the purchaser a copy of the certificate
6  of eligibility issued by the Department of Commerce and
7  Economic Opportunity.
8  This item (40) is exempt from the provisions of Section
9  3-90.
10  (41) Beginning July 1, 2022, breast pumps, breast pump
11  collection and storage supplies, and breast pump kits. This
12  item (41) is exempt from the provisions of Section 3-90. As
13  used in this item (41):
14  "Breast pump" means an electrically controlled or
15  manually controlled pump device designed or marketed to be
16  used to express milk from a human breast during lactation,
17  including the pump device and any battery, AC adapter, or
18  other power supply unit that is used to power the pump
19  device and is packaged and sold with the pump device at the
20  time of sale.
21  "Breast pump collection and storage supplies" means
22  items of tangible personal property designed or marketed
23  to be used in conjunction with a breast pump to collect
24  milk expressed from a human breast and to store collected
25  milk until it is ready for consumption.
26  "Breast pump collection and storage supplies"

 

 

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

 

 

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1  of the State Treasurer pursuant to the Revised Uniform
2  Unclaimed Property Act. This item (42) (41) is exempt from the
3  provisions of Section 3-90.
4  (43) Beginning July 1, 2023, diapers. This item (43) is
5  exempt from the 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 10. The Service Use Tax Act is amended by changing
12  Section 3-5 as follows:
13  (35 ILCS 110/3-5)
14  Sec. 3-5. Exemptions. Use of the following tangible
15  personal property is exempt from the tax imposed by this Act:
16  (1) Personal property purchased from a corporation,
17  society, association, foundation, institution, or
18  organization, other than a limited liability company, that is
19  organized and operated as a not-for-profit service enterprise
20  for the benefit of persons 65 years of age or older if the
21  personal property was not purchased by the enterprise for the
22  purpose of resale by the enterprise.
23  (2) Personal property purchased by a non-profit Illinois
24  county fair association for use in conducting, operating, or

 

 

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1  promoting the county fair.
2  (3) Personal property purchased by a not-for-profit arts
3  or cultural organization that establishes, by proof required
4  by the Department by rule, that it has received an exemption
5  under Section 501(c)(3) of the Internal Revenue Code and that
6  is organized and operated primarily for the presentation or
7  support of arts or cultural programming, activities, or
8  services. These organizations include, but are not limited to,
9  music and dramatic arts organizations such as symphony
10  orchestras and theatrical groups, arts and cultural service
11  organizations, local arts councils, visual arts organizations,
12  and media arts organizations. On and after July 1, 2001 (the
13  effective date of Public Act 92-35), however, an entity
14  otherwise eligible for this exemption shall not make tax-free
15  purchases unless it has an active identification number issued
16  by the Department.
17  (4) Legal tender, currency, medallions, or gold or silver
18  coinage issued by the State of Illinois, the government of the
19  United States of America, or the government of any foreign
20  country, and bullion.
21  (5) Until July 1, 2003 and beginning again on September 1,
22  2004 through August 30, 2014, graphic arts machinery and
23  equipment, including repair and replacement parts, both new
24  and used, and including that manufactured on special order or
25  purchased for lease, certified by the purchaser to be used
26  primarily for graphic arts production. Equipment includes

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  racing for prizes. This item (14) is exempt from the
2  provisions of Section 3-75, and the exemption provided for
3  under this item (14) applies for all periods beginning May 30,
4  1995, but no claim for credit or refund is allowed on or after
5  January 1, 2008 (the effective date of Public Act 95-88) for
6  such taxes paid during the period beginning May 30, 2000 and
7  ending on January 1, 2008 (the effective date of Public Act
8  95-88).
9  (15) Computers and communications equipment utilized for
10  any hospital purpose and equipment used in the diagnosis,
11  analysis, or treatment of hospital patients purchased by a
12  lessor who leases the equipment, under a lease of one year or
13  longer executed or in effect at the time the lessor would
14  otherwise be subject to the tax imposed by this Act, to a
15  hospital that has been issued an active tax exemption
16  identification number by the Department under Section 1g of
17  the Retailers' Occupation Tax Act. If the equipment is leased
18  in a manner that does not qualify for this exemption or is used
19  in any other non-exempt manner, the lessor shall be liable for
20  the tax imposed under this Act or the Use Tax Act, as the case
21  may be, based on the fair market value of the property at the
22  time the non-qualifying use occurs. No lessor shall collect or
23  attempt to collect an amount (however designated) that
24  purports to reimburse that lessor for the tax imposed by this
25  Act or the Use Tax Act, as the case may be, if the tax has not
26  been paid by the lessor. If a lessor improperly collects any

 

 

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

 

 

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1  (20) 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  (21) 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 3-75.
8  (22) 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 3-75.
18  (23) Beginning August 23, 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  (24) 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 Use Tax Act, as the case
18  may be, based on the fair market value of the property at the
19  time the nonqualifying use occurs. No lessor shall collect or
20  attempt to collect an amount (however designated) that
21  purports to reimburse that lessor for the tax imposed by this
22  Act or the Use Tax Act, as the case may be, if the tax has not
23  been paid by the lessor. If a lessor improperly collects any
24  such amount from the lessee, the lessee shall have a legal
25  right to claim a refund of that amount from the lessor. If,
26  however, that amount is not refunded to the lessee for any

 

 

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1  reason, the lessor is liable to pay that amount to the
2  Department. This paragraph is exempt from the provisions of
3  Section 3-75.
4  (25) 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 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 is used in any other
13  nonexempt manner, the lessor shall be liable for the tax
14  imposed under this Act or the Use Tax Act, as the case may be,
15  based on the fair market value of the property at the time the
16  nonqualifying use occurs. No lessor shall collect or attempt
17  to collect an amount (however designated) that purports to
18  reimburse that lessor for the tax imposed by this Act or the
19  Use Tax Act, as the case may be, if the tax has not been paid
20  by the lessor. If a lessor improperly collects any such amount
21  from the lessee, the lessee shall have a legal right to claim a
22  refund of that amount from the lessor. If, however, that
23  amount is not refunded to the lessee for any reason, the lessor
24  is liable to pay that amount to the Department. This paragraph
25  is exempt from the provisions of Section 3-75.
26  (26) Beginning January 1, 2008, tangible personal property

 

 

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1  used in the construction or maintenance of a community water
2  supply, as defined under Section 3.145 of the Environmental
3  Protection Act, that is operated by a not-for-profit
4  corporation that holds a valid water supply permit issued
5  under Title IV of the Environmental Protection Act. This
6  paragraph is exempt from the provisions of Section 3-75.
7  (27) Beginning January 1, 2010 and continuing through
8  December 31, 2024, materials, parts, equipment, components,
9  and furnishings incorporated into or upon an aircraft as part
10  of the modification, refurbishment, completion, replacement,
11  repair, or maintenance of the aircraft. This exemption
12  includes consumable supplies used in the modification,
13  refurbishment, completion, replacement, repair, and
14  maintenance of aircraft, but excludes any materials, parts,
15  equipment, components, and consumable supplies used in the
16  modification, replacement, repair, and maintenance of aircraft
17  engines or power plants, whether such engines or power plants
18  are installed or uninstalled upon any such aircraft.
19  "Consumable supplies" include, but are not limited to,
20  adhesive, tape, sandpaper, general purpose lubricants,
21  cleaning solution, latex gloves, and protective films. This
22  exemption applies only to the use of qualifying tangible
23  personal property transferred incident to the modification,
24  refurbishment, completion, replacement, repair, or maintenance
25  of aircraft by persons who (i) hold an Air Agency Certificate
26  and are empowered to operate an approved repair station by the

 

 

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1  Federal Aviation Administration, (ii) have a Class IV Rating,
2  and (iii) conduct operations in accordance with Part 145 of
3  the Federal Aviation Regulations. The exemption does not
4  include aircraft operated by a commercial air carrier
5  providing scheduled passenger air service pursuant to
6  authority issued under Part 121 or Part 129 of the Federal
7  Aviation Regulations. The changes made to this paragraph (27)
8  by Public Act 98-534 are declarative of existing law. It is the
9  intent of the General Assembly that the exemption under this
10  paragraph (27) applies continuously from January 1, 2010
11  through December 31, 2024; however, no claim for credit or
12  refund is allowed for taxes paid as a result of the
13  disallowance of this exemption on or after January 1, 2015 and
14  prior to February 5, 2020 (the effective date of Public Act
15  101-629) this amendatory Act of the 101st General Assembly.
16  (28) Tangible personal property purchased by a
17  public-facilities corporation, as described in Section
18  11-65-10 of the Illinois Municipal Code, for purposes of
19  constructing or furnishing a municipal convention hall, but
20  only if the legal title to the municipal convention hall is
21  transferred to the municipality without any further
22  consideration by or on behalf of the municipality at the time
23  of the completion of the municipal convention hall or upon the
24  retirement or redemption of any bonds or other debt
25  instruments issued by the public-facilities corporation in
26  connection with the development of the municipal convention

 

 

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1  hall. This exemption includes existing public-facilities
2  corporations as provided in Section 11-65-25 of the Illinois
3  Municipal Code. This paragraph is exempt from the provisions
4  of Section 3-75.
5  (29) Beginning January 1, 2017 and through December 31,
6  2026, menstrual pads, tampons, and menstrual cups.
7  (30) Tangible personal property transferred to 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 3-75.
11  (31) 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 this amendatory Act of the 101st
20  General Assembly been in effect, may apply for and obtain an
21  exemption for subsequent purchases of computer equipment or
22  enabling software purchased or leased to upgrade, supplement,
23  or replace computer equipment or enabling software purchased
24  or leased in the original investment that would have
25  qualified.
26  The Department of Commerce and Economic Opportunity shall

 

 

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1  grant a certificate of exemption under this item (31) to
2  qualified data centers as defined by Section 605-1025 of the
3  Department of Commerce and Economic Opportunity Law of the
4  Civil Administrative Code of Illinois.
5  For the purposes of this item (31):
6  "Data center" means a building or a series of
7  buildings rehabilitated or constructed to house working
8  servers in one physical location or multiple sites within
9  the State of Illinois.
10  "Qualified tangible personal property" means:
11  electrical systems and equipment; climate control and
12  chilling equipment and systems; mechanical systems and
13  equipment; monitoring and secure systems; emergency
14  generators; hardware; computers; servers; data storage
15  devices; network connectivity equipment; racks; cabinets;
16  telecommunications cabling infrastructure; raised floor
17  systems; peripheral components or systems; software;
18  mechanical, electrical, or plumbing systems; battery
19  systems; cooling systems and towers; temperature control
20  systems; other cabling; and other data center
21  infrastructure equipment and systems necessary to operate
22  qualified tangible personal property, including fixtures;
23  and component parts of any of the foregoing, including
24  installation, maintenance, repair, refurbishment, and
25  replacement of qualified tangible personal property to
26  generate, transform, transmit, distribute, or manage

 

 

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

 

 

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

 

 

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1  pre-packaged as a breast pump kit by the breast pump
2  manufacturer or distributor.
3  (33) (32) Tangible personal property sold by or on behalf
4  of the State Treasurer pursuant to the Revised Uniform
5  Unclaimed Property Act. This item (33) (32) is exempt from the
6  provisions of Section 3-75.
7  (34) Beginning July 1, 2023, diapers. This item (34) is
8  exempt from the provisions of Section 3-75.
9  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
10  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
11  70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
12  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
13  Section 15. The Service Occupation Tax Act is amended by
14  changing Section 3-5 as follows:
15  (35 ILCS 115/3-5)
16  Sec. 3-5. Exemptions. The following tangible personal
17  property is exempt from the tax imposed by this Act:
18  (1) Personal property sold by a corporation, society,
19  association, foundation, institution, or organization, other
20  than a limited liability company, that is organized and
21  operated as a not-for-profit service enterprise for the
22  benefit of persons 65 years of age or older if the personal
23  property was not purchased by the enterprise for the purpose
24  of resale by the enterprise.

 

 

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1  (2) Personal property purchased by a not-for-profit
2  Illinois county fair association for use in conducting,
3  operating, or promoting the county fair.
4  (3) Personal property purchased by any not-for-profit arts
5  or cultural organization that establishes, by proof required
6  by the Department by rule, that it has received an exemption
7  under Section 501(c)(3) of the Internal Revenue Code and that
8  is organized and operated primarily for the presentation or
9  support of arts or cultural programming, activities, or
10  services. These organizations include, but are not limited to,
11  music and dramatic arts organizations such as symphony
12  orchestras and theatrical groups, arts and cultural service
13  organizations, local arts councils, visual arts organizations,
14  and media arts organizations. On and after July 1, 2001 (the
15  effective date of Public Act 92-35), however, an entity
16  otherwise eligible for this exemption shall not make tax-free
17  purchases unless it has an active identification number issued
18  by the Department.
19  (4) Legal tender, currency, medallions, or gold or silver
20  coinage issued by the State of Illinois, the government of the
21  United States of America, or the government of any foreign
22  country, and bullion.
23  (5) Until July 1, 2003 and beginning again on September 1,
24  2004 through August 30, 2014, graphic arts machinery and
25  equipment, including repair and replacement parts, both new
26  and used, and including that manufactured on special order or

 

 

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

 

 

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

 

 

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1  domestic stopovers.
2  Beginning July 1, 2013, fuel and petroleum products sold
3  to or used by an air carrier, certified by the carrier to be
4  used for consumption, shipment, or storage in the conduct of
5  its business as an air common carrier, for a flight that (i) is
6  engaged in foreign trade or is engaged in trade between the
7  United States and any of its possessions and (ii) transports
8  at least one individual or package for hire from the city of
9  origination to the city of final destination on the same
10  aircraft, without regard to a change in the flight number of
11  that aircraft.
12  (9) Proceeds of mandatory service charges separately
13  stated on customers' bills for the purchase and consumption of
14  food and beverages, to the extent that the proceeds of the
15  service charge are in fact turned over as tips or as a
16  substitute for tips to the employees who participate directly
17  in preparing, serving, hosting or cleaning up the food or
18  beverage function with respect to which the service charge is
19  imposed.
20  (10) Until July 1, 2003, oil field exploration, drilling,
21  and production equipment, including (i) rigs and parts of
22  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
23  pipe and tubular goods, including casing and drill strings,
24  (iii) pumps and pump-jack units, (iv) storage tanks and flow
25  lines, (v) any individual replacement part for oil field
26  exploration, drilling, and production equipment, and (vi)

 

 

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

 

 

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1  use, when purchased for use by a person receiving medical
2  assistance under Article V of the Illinois Public Aid Code who
3  resides in a licensed long-term care facility, as defined in
4  the Nursing Home Care Act, or in a licensed facility as defined
5  in the ID/DD Community Care Act, the MC/DD Act, or the
6  Specialized Mental Health Rehabilitation Act of 2013.
7  (14) Semen used for artificial insemination of livestock
8  for direct agricultural production.
9  (15) Horses, or interests in horses, registered with and
10  meeting the requirements of any of the Arabian Horse Club
11  Registry of America, Appaloosa Horse Club, American Quarter
12  Horse Association, United States Trotting Association, or
13  Jockey Club, as appropriate, used for purposes of breeding or
14  racing for prizes. This item (15) is exempt from the
15  provisions of Section 3-55, and the exemption provided for
16  under this item (15) applies for all periods beginning May 30,
17  1995, but no claim for credit or refund is allowed on or after
18  January 1, 2008 (the effective date of Public Act 95-88) for
19  such taxes paid during the period beginning May 30, 2000 and
20  ending on January 1, 2008 (the effective date of Public Act
21  95-88).
22  (16) Computers and communications equipment utilized for
23  any hospital purpose and equipment used in the diagnosis,
24  analysis, or treatment of hospital patients sold to a lessor
25  who leases the equipment, under a lease of one year or longer
26  executed or in effect at the time of the purchase, to a

 

 

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

 

 

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1  purification facilities, storm water drainage and retention
2  facilities, and sewage treatment facilities, resulting from a
3  State or federally declared disaster in Illinois or bordering
4  Illinois when such repairs are initiated on facilities located
5  in the declared disaster area within 6 months after the
6  disaster.
7  (20) Beginning July 1, 1999, game or game birds sold at a
8  "game breeding and hunting preserve area" as that term is used
9  in the Wildlife Code. This paragraph is exempt from the
10  provisions of Section 3-55.
11  (21) A motor vehicle, as that term is defined in Section
12  1-146 of the Illinois Vehicle Code, that is donated to a
13  corporation, limited liability company, society, association,
14  foundation, or institution that is determined by the
15  Department to be organized and operated exclusively for
16  educational purposes. For purposes of this exemption, "a
17  corporation, limited liability company, society, association,
18  foundation, or institution organized and operated exclusively
19  for educational purposes" means all tax-supported public
20  schools, private schools that offer systematic instruction in
21  useful branches of learning by methods common to public
22  schools and that compare favorably in their scope and
23  intensity with the course of study presented in tax-supported
24  schools, and vocational or technical schools or institutes
25  organized and operated exclusively to provide a course of
26  study of not less than 6 weeks duration and designed to prepare

 

 

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

 

 

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1  paragraph is exempt from the provisions of Section 3-55.
2  (24) Beginning on August 2, 2001 (the effective date of
3  Public Act 92-227), computers and communications equipment
4  utilized for any hospital purpose and equipment used in the
5  diagnosis, analysis, or treatment of hospital patients sold to
6  a lessor who leases the equipment, under a lease of one year or
7  longer executed or in effect at the time of the purchase, to a
8  hospital that has been issued an active tax exemption
9  identification number by the Department under Section 1g of
10  the Retailers' Occupation Tax Act. This paragraph is exempt
11  from the provisions of Section 3-55.
12  (25) Beginning on August 2, 2001 (the effective date of
13  Public Act 92-227), personal property sold to a lessor who
14  leases the property, under a lease of one year or longer
15  executed or in effect at the time of the purchase, to a
16  governmental body that has been issued an active tax exemption
17  identification number by the Department under Section 1g of
18  the Retailers' Occupation Tax Act. This paragraph is exempt
19  from the provisions of Section 3-55.
20  (26) Beginning on January 1, 2002 and through June 30,
21  2016, tangible personal property purchased from an Illinois
22  retailer by a taxpayer engaged in centralized purchasing
23  activities in Illinois who will, upon receipt of the property
24  in Illinois, temporarily store the property in Illinois (i)
25  for the purpose of subsequently transporting it outside this
26  State for use or consumption thereafter solely outside this

 

 

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1  State or (ii) for the purpose of being processed, fabricated,
2  or manufactured into, attached to, or incorporated into other
3  tangible personal property to be transported outside this
4  State and thereafter used or consumed solely outside this
5  State. The Director of Revenue shall, pursuant to rules
6  adopted in accordance with the Illinois Administrative
7  Procedure Act, issue a permit to any taxpayer in good standing
8  with the Department who is eligible for the exemption under
9  this paragraph (26). The permit issued under this paragraph
10  (26) shall authorize the holder, to the extent and in the
11  manner specified in the rules adopted under this Act, to
12  purchase tangible personal property from a retailer exempt
13  from the taxes imposed by this Act. Taxpayers shall maintain
14  all necessary books and records to substantiate the use and
15  consumption of all such tangible personal property outside of
16  the State of Illinois.
17  (27) Beginning January 1, 2008, tangible personal property
18  used in the construction or maintenance of a community water
19  supply, as defined under Section 3.145 of the Environmental
20  Protection Act, that is operated by a not-for-profit
21  corporation that holds a valid water supply permit issued
22  under Title IV of the Environmental Protection Act. This
23  paragraph is exempt from the provisions of Section 3-55.
24  (28) Tangible personal property sold to a
25  public-facilities corporation, as described in Section
26  11-65-10 of the Illinois Municipal Code, for purposes of

 

 

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1  constructing or furnishing a municipal convention hall, but
2  only if the legal title to the municipal convention hall is
3  transferred to the municipality without any further
4  consideration by or on behalf of the municipality at the time
5  of the completion of the municipal convention hall or upon the
6  retirement or redemption of any bonds or other debt
7  instruments issued by the public-facilities corporation in
8  connection with the development of the municipal convention
9  hall. This exemption includes existing public-facilities
10  corporations as provided in Section 11-65-25 of the Illinois
11  Municipal Code. This paragraph is exempt from the provisions
12  of Section 3-55.
13  (29) Beginning January 1, 2010 and continuing through
14  December 31, 2024, materials, parts, equipment, components,
15  and furnishings incorporated into or upon an aircraft as part
16  of the modification, refurbishment, completion, replacement,
17  repair, or maintenance of the aircraft. This exemption
18  includes consumable supplies used in the modification,
19  refurbishment, completion, replacement, repair, and
20  maintenance of aircraft, but excludes any materials, parts,
21  equipment, components, and consumable supplies used in the
22  modification, replacement, repair, and maintenance of aircraft
23  engines or power plants, whether such engines or power plants
24  are installed or uninstalled upon any such aircraft.
25  "Consumable supplies" include, but are not limited to,
26  adhesive, tape, sandpaper, general purpose lubricants,

 

 

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1  cleaning solution, latex gloves, and protective films. This
2  exemption applies only to the transfer of qualifying tangible
3  personal property incident to the modification, refurbishment,
4  completion, replacement, repair, or maintenance of an aircraft
5  by persons who (i) hold an Air Agency Certificate and are
6  empowered to operate an approved repair station by the Federal
7  Aviation Administration, (ii) have a Class IV Rating, and
8  (iii) conduct operations in accordance with Part 145 of the
9  Federal Aviation Regulations. The exemption does not include
10  aircraft operated by a commercial air carrier providing
11  scheduled passenger air service pursuant to authority issued
12  under Part 121 or Part 129 of the Federal Aviation
13  Regulations. The changes made to this paragraph (29) by Public
14  Act 98-534 are declarative of existing law. It is the intent of
15  the General Assembly that the exemption under this paragraph
16  (29) applies continuously from January 1, 2010 through
17  December 31, 2024; however, no claim for credit or refund is
18  allowed for taxes paid as a result of the disallowance of this
19  exemption on or after January 1, 2015 and prior to February 5,
20  2020 (the effective date of Public Act 101-629) this
21  amendatory Act of the 101st General Assembly.
22  (30) Beginning January 1, 2017 and through December 31,
23  2026, menstrual pads, tampons, and menstrual cups.
24  (31) Tangible personal property transferred to a purchaser
25  who is exempt from tax by operation of federal law. This
26  paragraph is exempt from the provisions of Section 3-55.

 

 

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1  (32) 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 subcontractor
7  of the owner, operator, or tenant. Data centers that would
8  have qualified for a certificate of exemption prior to January
9  1, 2020 had Public Act 101-31 this amendatory Act of the 101st
10  General Assembly been in effect, may apply for and obtain an
11  exemption for subsequent purchases of computer equipment or
12  enabling software purchased or leased to upgrade, supplement,
13  or replace computer equipment or enabling software purchased
14  or leased in the original investment that would have
15  qualified.
16  The Department of Commerce and Economic Opportunity shall
17  grant a certificate of exemption under this item (32) to
18  qualified data centers as defined by Section 605-1025 of the
19  Department of Commerce and Economic Opportunity Law of the
20  Civil Administrative Code of Illinois.
21  For the purposes of this item (32):
22  "Data center" means a building or a series of
23  buildings rehabilitated or constructed to house working
24  servers in one physical location or multiple sites within
25  the State of Illinois.
26  "Qualified tangible personal property" means:

 

 

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

 

 

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1  This item (32) is exempt from the provisions of Section
2  3-55.
3  (33) Beginning July 1, 2022, breast pumps, breast pump
4  collection and storage supplies, and breast pump kits. This
5  item (33) is exempt from the provisions of Section 3-55. As
6  used in this item (33):
7  "Breast pump" means an electrically controlled or
8  manually controlled pump device designed or marketed to be
9  used to express milk from a human breast during lactation,
10  including the pump device and any battery, AC adapter, or
11  other power supply unit that is used to power the pump
12  device and is packaged and sold with the pump device at the
13  time of sale.
14  "Breast pump collection and storage supplies" means
15  items of tangible personal property designed or marketed
16  to be used in conjunction with a breast pump to collect
17  milk expressed from a human breast and to store collected
18  milk until it is ready for consumption.
19  "Breast pump collection and storage supplies"
20  includes, but is not limited to: breast shields and breast
21  shield connectors; breast pump tubes and tubing adapters;
22  breast pump valves and membranes; backflow protectors and
23  backflow protector adaptors; bottles and bottle caps
24  specific to the operation of the breast pump; and breast
25  milk storage bags.
26  "Breast pump collection and storage supplies" does not

 

 

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1  include: (1) bottles and bottle caps not specific to the
2  operation of the breast pump; (2) breast pump travel bags
3  and other similar carrying accessories, including ice
4  packs, labels, and other similar products; (3) breast pump
5  cleaning supplies; (4) nursing bras, bra pads, breast
6  shells, and other similar products; and (5) creams,
7  ointments, and other similar products that relieve
8  breastfeeding-related symptoms or conditions of the
9  breasts or nipples, unless sold as part of a breast pump
10  kit that is pre-packaged by the breast pump manufacturer
11  or distributor.
12  "Breast pump kit" means a kit that: (1) contains no
13  more than a breast pump, breast pump collection and
14  storage supplies, a rechargeable battery for operating the
15  breast pump, a breastmilk cooler, bottle stands, ice
16  packs, and a breast pump carrying case; and (2) is
17  pre-packaged as a breast pump kit by the breast pump
18  manufacturer or distributor.
19  (34) (33) Tangible personal property sold by or on behalf
20  of the State Treasurer pursuant to the Revised Uniform
21  Unclaimed Property Act. This item (34) (33) is exempt from the
22  provisions of Section 3-55.
23  (35) Beginning July 1, 2023, diapers. This item (35) is
24  exempt from the provisions of Section 3-55.
25  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
26  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article

 

 

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1  70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
3  Section 20. The Retailers' Occupation Tax Act is amended
4  by changing Section 2-5 as follows:
5  (35 ILCS 120/2-5)
6  Sec. 2-5. Exemptions. Gross receipts from proceeds from
7  the sale of the following tangible personal property are
8  exempt from the tax imposed by this Act:
9  (1) Farm chemicals.
10  (2) Farm machinery and equipment, both new and used,
11  including that manufactured on special order, certified by
12  the purchaser to be used primarily for production
13  agriculture or State or federal agricultural programs,
14  including individual replacement parts for the machinery
15  and equipment, including machinery and equipment purchased
16  for lease, and including implements of husbandry defined
17  in Section 1-130 of the Illinois Vehicle Code, farm
18  machinery and agricultural chemical and fertilizer
19  spreaders, and nurse wagons required to be registered
20  under Section 3-809 of the Illinois Vehicle Code, but
21  excluding other motor vehicles required to be registered
22  under the Illinois Vehicle Code. Horticultural polyhouses
23  or hoop houses used for propagating, growing, or
24  overwintering plants shall be considered farm machinery

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  including repair and replacement parts, both new and used,
2  including that manufactured on special order, certified by
3  the purchaser to be used primarily for photoprocessing,
4  and including photoprocessing machinery and equipment
5  purchased for lease.
6  (21) Until July 1, 2028, coal and aggregate
7  exploration, mining, off-highway hauling, processing,
8  maintenance, and reclamation equipment, including
9  replacement parts and equipment, and including equipment
10  purchased for lease, but excluding motor vehicles required
11  to be registered under the Illinois Vehicle Code. The
12  changes made to this Section by Public Act 97-767 apply on
13  and after July 1, 2003, but no claim for credit or refund
14  is allowed on or after August 16, 2013 (the effective date
15  of Public Act 98-456) for such taxes paid during the
16  period beginning July 1, 2003 and ending on August 16,
17  2013 (the effective date of Public Act 98-456).
18  (22) Until June 30, 2013, fuel and petroleum products
19  sold to or used by an air carrier, certified by the carrier
20  to be used for consumption, shipment, or storage in the
21  conduct of its business as an air common carrier, for a
22  flight destined for or returning from a location or
23  locations outside the United States without regard to
24  previous or subsequent domestic stopovers.
25  Beginning July 1, 2013, fuel and petroleum products
26  sold to or used by an air carrier, certified by the carrier

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  (ii) have a Class IV Rating, and (iii) conduct operations
2  in accordance with Part 145 of the Federal Aviation
3  Regulations. The exemption does not include aircraft
4  operated by a commercial air carrier providing scheduled
5  passenger air service pursuant to authority issued under
6  Part 121 or Part 129 of the Federal Aviation Regulations.
7  The changes made to this paragraph (40) by Public Act
8  98-534 are declarative of existing law. It is the intent
9  of the General Assembly that the exemption under this
10  paragraph (40) applies continuously from January 1, 2010
11  through December 31, 2024; however, no claim for credit or
12  refund is allowed for taxes paid as a result of the
13  disallowance of this exemption on or after January 1, 2015
14  and prior to February 5, 2020 (the effective date of
15  Public Act 101-629) this amendatory Act of the 101st
16  General Assembly.
17  (41) Tangible personal property sold to a
18  public-facilities corporation, as described in Section
19  11-65-10 of the Illinois Municipal Code, for purposes of
20  constructing or furnishing a municipal convention hall,
21  but only if the legal title to the municipal convention
22  hall is transferred to the municipality without any
23  further consideration by or on behalf of the municipality
24  at the time of the completion of the municipal convention
25  hall or upon the retirement or redemption of any bonds or
26  other debt instruments issued by the public-facilities

 

 

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1  corporation in connection with the development of the
2  municipal convention hall. This exemption includes
3  existing public-facilities corporations as provided in
4  Section 11-65-25 of the Illinois Municipal Code. This
5  paragraph is exempt from the provisions of Section 2-70.
6  (42) Beginning January 1, 2017 and through December
7  31, 2026, menstrual pads, tampons, and menstrual cups.
8  (43) Merchandise that is subject to the Rental
9  Purchase Agreement Occupation and Use Tax. The purchaser
10  must certify that the item is purchased to be rented
11  subject to a rental purchase agreement, as defined in the
12  Rental Purchase Agreement Act, and provide proof of
13  registration under the Rental Purchase Agreement
14  Occupation and Use Tax Act. This paragraph is exempt from
15  the provisions of Section 2-70.
16  (44) Qualified tangible personal property used in the
17  construction or operation of a data center that has been
18  granted a certificate of exemption by the Department of
19  Commerce and Economic Opportunity, whether that tangible
20  personal property is purchased by the owner, operator, or
21  tenant of the data center or by a contractor or
22  subcontractor of the owner, operator, or tenant. Data
23  centers that would have qualified for a certificate of
24  exemption prior to January 1, 2020 had Public Act 101-31
25  this amendatory Act of the 101st General Assembly been in
26  effect, may apply for and obtain an exemption for

 

 

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

 

 

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1  temperature control systems; other cabling; and other
2  data center infrastructure equipment and systems
3  necessary to operate qualified tangible personal
4  property, including fixtures; and component parts of
5  any of the foregoing, including installation,
6  maintenance, repair, refurbishment, and replacement of
7  qualified tangible personal property to generate,
8  transform, transmit, distribute, or manage electricity
9  necessary to operate qualified tangible personal
10  property; and all other tangible personal property
11  that is essential to the operations of a computer data
12  center. The term "qualified tangible personal
13  property" also includes building materials physically
14  incorporated into the qualifying data center. To
15  document the exemption allowed under this Section, the
16  retailer must obtain from the purchaser a copy of the
17  certificate of eligibility issued by the Department of
18  Commerce and Economic Opportunity.
19  This item (44) is exempt from the provisions of
20  Section 2-70.
21  (45) Beginning January 1, 2020 and through December
22  31, 2020, sales of tangible personal property made by a
23  marketplace seller over a marketplace for which tax is due
24  under this Act but for which use tax has been collected and
25  remitted to the Department by a marketplace facilitator
26  under Section 2d of the Use Tax Act are exempt from tax

 

 

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1  under this Act. A marketplace seller claiming this
2  exemption shall maintain books and records demonstrating
3  that the use tax on such sales has been collected and
4  remitted by a marketplace facilitator. Marketplace sellers
5  that have properly remitted tax under this Act on such
6  sales may file a claim for credit as provided in Section 6
7  of this Act. No claim is allowed, however, for such taxes
8  for which a credit or refund has been issued to the
9  marketplace facilitator under the Use Tax Act, or for
10  which the marketplace facilitator has filed a claim for
11  credit or refund under the Use Tax Act.
12  (46) Beginning July 1, 2022, breast pumps, breast pump
13  collection and storage supplies, and breast pump kits.
14  This item (46) is exempt from the provisions of Section
15  2-70. As used in this item (46):
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  (47) (46) Tangible personal property sold by or on
3  behalf of the State Treasurer pursuant to the Revised
4  Uniform Unclaimed Property Act. This item (47) (46) is
5  exempt from the provisions of Section 2-70.
6  (48) Beginning July 1, 2023, diapers. This item (48)
7  is exempt from the provisions of Section 2-70.
8  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
9  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
10  8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
11  102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
12  eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
13  Section 99. Effective date. This Act takes effect upon
14  becoming law.

 

 

  HB3059 - 86 - LRB103 27006 HLH 53373 b