Illinois House Bill HB3144 Enrolled / Bill

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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 Sections
5  3-5 and 3-10 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

 

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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) Except as otherwise provided in this Act, personal
12  property purchased by a governmental body, by a corporation,
13  society, association, foundation, or institution organized and
14  operated exclusively for charitable, religious, or educational
15  purposes, or by a not-for-profit corporation, society,
16  association, foundation, institution, or organization that has
17  no compensated officers or employees and that is organized and
18  operated primarily for the recreation of persons 55 years of
19  age or older. A limited liability company may qualify for the
20  exemption under this paragraph only if the limited liability
21  company is organized and operated exclusively for educational
22  purposes. On and after July 1, 1987, however, no entity
23  otherwise eligible for this exemption shall make tax-free
24  purchases unless it has an active exemption identification
25  number issued by the Department.
26  (5) Until July 1, 2003, a passenger car that is a

 

 

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

 

 

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

 

 

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1  such equipment.
2  Farm machinery and equipment also includes computers,
3  sensors, software, and related equipment used primarily in the
4  computer-assisted operation of production agriculture
5  facilities, equipment, and activities such as, but not limited
6  to, the collection, monitoring, and correlation of animal and
7  crop data for the purpose of formulating animal diets and
8  agricultural chemicals.
9  Beginning on January 1, 2024, farm machinery and equipment
10  also includes electrical power generation equipment used
11  primarily for production agriculture.
12  This item (11) is exempt from the provisions of Section
13  3-90.
14  (12) Until June 30, 2013, fuel and petroleum products sold
15  to or used by an air common carrier, certified by the carrier
16  to be used for consumption, shipment, or storage in the
17  conduct of its business as an air common carrier, for a flight
18  destined for or returning from a location or locations outside
19  the United States without regard to previous or subsequent
20  domestic stopovers.
21  Beginning July 1, 2013, fuel and petroleum products sold
22  to or used by an air carrier, certified by the carrier to be
23  used for consumption, shipment, or storage in the conduct of
24  its business as an air common carrier, for a flight that (i) is
25  engaged in foreign trade or is engaged in trade between the
26  United States and any of its possessions and (ii) transports

 

 

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

 

 

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1  photoprocessing machinery and equipment purchased for lease.
2  (16) Until July 1, 2028, coal and aggregate exploration,
3  mining, off-highway hauling, processing, maintenance, and
4  reclamation equipment, including replacement parts and
5  equipment, and including equipment purchased for lease, but
6  excluding motor vehicles required to be registered under the
7  Illinois Vehicle Code. The changes made to this Section by
8  Public Act 97-767 apply on and after July 1, 2003, but no claim
9  for credit or refund is allowed on or after August 16, 2013
10  (the effective date of Public Act 98-456) for such taxes paid
11  during the period beginning July 1, 2003 and ending on August
12  16, 2013 (the effective date of Public Act 98-456).
13  (17) Until July 1, 2003, distillation machinery and
14  equipment, sold as a unit or kit, assembled or installed by the
15  retailer, certified by the user to be used only for the
16  production of ethyl alcohol that will be used for consumption
17  as motor fuel or as a component of motor fuel for the personal
18  use of the user, and not subject to sale or resale.
19  (18) Manufacturing and assembling machinery and equipment
20  used primarily in the process of manufacturing or assembling
21  tangible personal property for wholesale or retail sale or
22  lease, whether that sale or lease is made directly by the
23  manufacturer or by some other person, whether the materials
24  used in the process are owned by the manufacturer or some other
25  person, or whether that sale or lease is made apart from or as
26  an incident to the seller's engaging in the service occupation

 

 

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1  of producing machines, tools, dies, jigs, patterns, gauges, or
2  other similar items of no commercial value on special order
3  for a particular purchaser. The exemption provided by this
4  paragraph (18) includes production related tangible personal
5  property, as defined in Section 3-50, purchased on or after
6  July 1, 2019. The exemption provided by this paragraph (18)
7  does not include machinery and equipment used in (i) the
8  generation of electricity for wholesale or retail sale; (ii)
9  the generation or treatment of natural or artificial gas for
10  wholesale or retail sale that is delivered to customers
11  through pipes, pipelines, or mains; or (iii) the treatment of
12  water for wholesale or retail sale that is delivered to
13  customers through pipes, pipelines, or mains. The provisions
14  of Public Act 98-583 are declaratory of existing law as to the
15  meaning and scope of this exemption. Beginning on July 1,
16  2017, the exemption provided by this paragraph (18) includes,
17  but is not limited to, graphic arts machinery and equipment,
18  as defined in paragraph (6) of this Section.
19  (19) Personal property delivered to a purchaser or
20  purchaser's donee inside Illinois when the purchase order for
21  that personal property was received by a florist located
22  outside Illinois who has a florist located inside Illinois
23  deliver the personal property.
24  (20) Semen used for artificial insemination of livestock
25  for direct agricultural production.
26  (21) Horses, or interests in horses, registered with and

 

 

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1  meeting the requirements of any of the Arabian Horse Club
2  Registry of America, Appaloosa Horse Club, American Quarter
3  Horse Association, United States Trotting Association, or
4  Jockey Club, as appropriate, used for purposes of breeding or
5  racing for prizes. This item (21) is exempt from the
6  provisions of Section 3-90, and the exemption provided for
7  under this item (21) applies for all periods beginning May 30,
8  1995, but no claim for credit or refund is allowed on or after
9  January 1, 2008 for such taxes paid during the period
10  beginning May 30, 2000 and ending on January 1, 2008.
11  (22) Computers and communications equipment utilized for
12  any hospital purpose and equipment used in the diagnosis,
13  analysis, or treatment of hospital patients purchased by a
14  lessor who leases the equipment, under a lease of one year or
15  longer executed or in effect at the time the lessor would
16  otherwise be subject to the tax imposed by this Act, to a
17  hospital that has been issued an active tax exemption
18  identification number by the Department under Section 1g of
19  the Retailers' Occupation Tax Act. If the equipment is leased
20  in a manner that does not qualify for this exemption or is used
21  in any other non-exempt manner, the lessor shall be liable for
22  the tax imposed under this Act or the Service Use Tax Act, as
23  the case may be, based on the fair market value of the property
24  at the time the non-qualifying use occurs. No lessor shall
25  collect or attempt to collect an amount (however designated)
26  that purports to reimburse that lessor for the tax imposed by

 

 

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1  this Act or the Service Use Tax Act, as the case may be, if the
2  tax has not been paid by the lessor. If a lessor improperly
3  collects any such amount from the lessee, the lessee shall
4  have a legal right to claim a refund of that amount from the
5  lessor. If, however, that amount is not refunded to the lessee
6  for any reason, the lessor is liable to pay that amount to the
7  Department.
8  (23) Personal property purchased by a lessor who leases
9  the property, under a lease of one year or longer executed or
10  in effect at the time the lessor would otherwise be subject to
11  the tax imposed by this Act, to a governmental body that has
12  been issued an active sales tax exemption identification
13  number by the Department under Section 1g of the Retailers'
14  Occupation Tax Act. If the property is leased in a manner that
15  does not qualify for this exemption or used in any other
16  non-exempt manner, the lessor shall be liable for the tax
17  imposed under this Act or the Service Use Tax Act, as the case
18  may be, based on the fair market value of the property at the
19  time the non-qualifying 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 Service Use Tax Act, as the case may be, if the tax
23  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  (24) Beginning with taxable years ending on or after
4  December 31, 1995 and ending with taxable years ending on or
5  before December 31, 2004, personal property that is donated
6  for disaster relief to be used in a State or federally declared
7  disaster area in Illinois or bordering Illinois by a
8  manufacturer or retailer that is registered in this State to a
9  corporation, society, association, foundation, or institution
10  that has been issued a sales tax exemption identification
11  number by the Department that assists victims of the disaster
12  who reside within the declared disaster area.
13  (25) Beginning with taxable years ending on or after
14  December 31, 1995 and ending with taxable years ending on or
15  before December 31, 2004, personal property that is used in
16  the performance of infrastructure repairs in this State,
17  including, but not limited to, municipal roads and streets,
18  access roads, bridges, sidewalks, waste disposal systems,
19  water and sewer line extensions, water distribution and
20  purification facilities, storm water drainage and retention
21  facilities, and sewage treatment facilities, resulting from a
22  State or federally declared disaster in Illinois or bordering
23  Illinois when such repairs are initiated on facilities located
24  in the declared disaster area within 6 months after the
25  disaster.
26  (26) Beginning July 1, 1999, game or game birds purchased

 

 

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1  at a "game breeding and hunting preserve area" as that term is
2  used in the Wildlife Code. This paragraph is exempt from the
3  provisions of Section 3-90.
4  (27) A motor vehicle, as that term is defined in Section
5  1-146 of the Illinois Vehicle Code, that is donated to a
6  corporation, limited liability company, society, association,
7  foundation, or institution that is determined by the
8  Department to be organized and operated exclusively for
9  educational purposes. For purposes of this exemption, "a
10  corporation, limited liability company, society, association,
11  foundation, or institution organized and operated exclusively
12  for educational purposes" means all tax-supported public
13  schools, private schools that offer systematic instruction in
14  useful branches of learning by methods common to public
15  schools and that compare favorably in their scope and
16  intensity with the course of study presented in tax-supported
17  schools, and vocational or technical schools or institutes
18  organized and operated exclusively to provide a course of
19  study of not less than 6 weeks duration and designed to prepare
20  individuals to follow a trade or to pursue a manual,
21  technical, mechanical, industrial, business, or commercial
22  occupation.
23  (28) Beginning January 1, 2000, personal property,
24  including food, purchased through fundraising events for the
25  benefit of a public or private elementary or secondary school,
26  a group of those schools, or one or more school districts if

 

 

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1  the events are sponsored by an entity recognized by the school
2  district that consists primarily of volunteers and includes
3  parents and teachers of the school children. This paragraph
4  does not apply to fundraising events (i) for the benefit of
5  private home instruction or (ii) for which the fundraising
6  entity purchases the personal property sold at the events from
7  another individual or entity that sold the property for the
8  purpose of resale by the fundraising entity and that profits
9  from the sale to the fundraising entity. This paragraph is
10  exempt from the provisions of Section 3-90.
11  (29) Beginning January 1, 2000 and through December 31,
12  2001, new or used automatic vending machines that prepare and
13  serve hot food and beverages, including coffee, soup, and
14  other items, and replacement parts for these machines.
15  Beginning January 1, 2002 and through June 30, 2003, machines
16  and parts for machines used in commercial, coin-operated
17  amusement and vending business if a use or occupation tax is
18  paid on the gross receipts derived from the use of the
19  commercial, coin-operated amusement and vending machines. This
20  paragraph is exempt from the provisions of Section 3-90.
21  (30) Beginning January 1, 2001 and through June 30, 2016,
22  food for human consumption that is to be consumed off the
23  premises where it is sold (other than alcoholic beverages,
24  soft drinks, and food that has been prepared for immediate
25  consumption) and prescription and nonprescription medicines,
26  drugs, medical appliances, and insulin, urine testing

 

 

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1  materials, syringes, and needles used by diabetics, for human
2  use, when purchased for use by a person receiving medical
3  assistance under Article V of the Illinois Public Aid Code who
4  resides in a licensed long-term care facility, as defined in
5  the Nursing Home Care Act, or in a licensed facility as defined
6  in the ID/DD Community Care Act, the MC/DD Act, or the
7  Specialized Mental Health Rehabilitation Act of 2013.
8  (31) Beginning on August 2, 2001 (the effective date of
9  Public Act 92-227), computers and communications equipment
10  utilized for any hospital purpose and equipment used in the
11  diagnosis, analysis, or treatment of hospital patients
12  purchased by a lessor who leases the equipment, under a lease
13  of one year or longer executed or in effect at the time the
14  lessor would otherwise be subject to the tax imposed by this
15  Act, to a 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 nonexempt manner, the lessor shall be liable for
20  the tax imposed under this Act or the Service Use Tax Act, as
21  the case may be, based on the fair market value of the property
22  at the time the nonqualifying use occurs. No lessor shall
23  collect or attempt to collect an amount (however designated)
24  that purports to reimburse that lessor for the tax imposed by
25  this Act or the Service Use Tax Act, as the case may be, if the
26  tax has not been paid by the lessor. If a lessor improperly

 

 

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

 

 

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1  for any reason, the lessor is liable to pay that amount to the
2  Department. This paragraph is exempt from the provisions of
3  Section 3-90.
4  (33) On and after July 1, 2003 and through June 30, 2004,
5  the use in this State of motor vehicles of the second division
6  with a gross vehicle weight in excess of 8,000 pounds and that
7  are subject to the commercial distribution fee imposed under
8  Section 3-815.1 of the Illinois Vehicle Code. Beginning on
9  July 1, 2004 and through June 30, 2005, the use in this State
10  of motor vehicles of the second division: (i) with a gross
11  vehicle weight rating in excess of 8,000 pounds; (ii) that are
12  subject to the commercial distribution fee imposed under
13  Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
14  are primarily used for commercial purposes. Through June 30,
15  2005, this exemption applies to repair and replacement parts
16  added after the initial purchase of such a motor vehicle if
17  that motor vehicle is used in a manner that would qualify for
18  the rolling stock exemption otherwise provided for in this
19  Act. For purposes of this paragraph, the term "used for
20  commercial purposes" means the transportation of persons or
21  property in furtherance of any commercial or industrial
22  enterprise, whether for-hire or not.
23  (34) Beginning January 1, 2008, tangible personal property
24  used in the construction or maintenance of a community water
25  supply, as defined under Section 3.145 of the Environmental
26  Protection Act, that is operated by a not-for-profit

 

 

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1  corporation that holds a valid water supply permit issued
2  under Title IV of the Environmental Protection Act. This
3  paragraph is exempt from the provisions of Section 3-90.
4  (35) Beginning January 1, 2010 and continuing through
5  December 31, 2029, materials, parts, equipment, components,
6  and furnishings incorporated into or upon an aircraft as part
7  of the modification, refurbishment, completion, replacement,
8  repair, or maintenance of the aircraft. This exemption
9  includes consumable supplies used in the modification,
10  refurbishment, completion, replacement, repair, and
11  maintenance of aircraft. However, until January 1, 2024, this
12  exemption excludes any materials, parts, equipment,
13  components, and consumable supplies used in the modification,
14  replacement, repair, and maintenance of aircraft engines or
15  power plants, whether such engines or power plants are
16  installed or uninstalled upon any such aircraft. "Consumable
17  supplies" include, but are not limited to, adhesive, tape,
18  sandpaper, general purpose lubricants, cleaning solution,
19  latex gloves, and protective films.
20  Beginning January 1, 2010 and continuing through December
21  31, 2023, this exemption applies only to the use of qualifying
22  tangible personal property by persons who modify, refurbish,
23  complete, repair, replace, or maintain aircraft and who (i)
24  hold an Air Agency Certificate and are empowered to operate an
25  approved repair station by the Federal Aviation
26  Administration, (ii) have a Class IV Rating, and (iii) conduct

 

 

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1  operations in accordance with Part 145 of the Federal Aviation
2  Regulations. From January 1, 2024 through December 31, 2029,
3  this exemption applies only to the use of qualifying tangible
4  personal property by: (A) persons who modify, refurbish,
5  complete, repair, replace, or maintain aircraft and who (i)
6  hold an Air Agency Certificate and are empowered to operate an
7  approved repair station by the Federal Aviation
8  Administration, (ii) have a Class IV Rating, and (iii) conduct
9  operations in accordance with Part 145 of the Federal Aviation
10  Regulations; and (B) persons who engage in the modification,
11  replacement, repair, and maintenance of aircraft engines or
12  power plants without regard to whether or not those persons
13  meet the qualifications of item (A).
14  The exemption does not include aircraft operated by a
15  commercial air carrier providing scheduled passenger air
16  service pursuant to authority issued under Part 121 or Part
17  129 of the Federal Aviation Regulations. The changes made to
18  this paragraph (35) by Public Act 98-534 are declarative of
19  existing law. It is the intent of the General Assembly that the
20  exemption under this paragraph (35) applies continuously from
21  January 1, 2010 through December 31, 2024; however, no claim
22  for credit or refund is allowed for taxes paid as a result of
23  the disallowance of this exemption on or after January 1, 2015
24  and prior to February 5, 2020 (the effective date of Public Act
25  101-629).
26  (36) Tangible personal property purchased by a

 

 

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1  public-facilities corporation, as described in Section
2  11-65-10 of the Illinois Municipal Code, for purposes of
3  constructing or furnishing a municipal convention hall, but
4  only if the legal title to the municipal convention hall is
5  transferred to the municipality without any further
6  consideration by or on behalf of the municipality at the time
7  of the completion of the municipal convention hall or upon the
8  retirement or redemption of any bonds or other debt
9  instruments issued by the public-facilities corporation in
10  connection with the development of the municipal convention
11  hall. This exemption includes existing public-facilities
12  corporations as provided in Section 11-65-25 of the Illinois
13  Municipal Code. This paragraph is exempt from the provisions
14  of Section 3-90.
15  (37) Beginning January 1, 2017 and through December 31,
16  2026, menstrual pads, tampons, and menstrual cups.
17  (38) Merchandise that is subject to the Rental Purchase
18  Agreement Occupation and Use Tax. The purchaser must certify
19  that the item is purchased to be rented subject to a
20  rental-purchase rental purchase agreement, as defined in the
21  Rental-Purchase Rental Purchase Agreement Act, and provide
22  proof of registration under the Rental Purchase Agreement
23  Occupation and Use Tax Act. This paragraph is exempt from the
24  provisions of Section 3-90.
25  (39) Tangible personal property purchased by a purchaser
26  who is exempt from the tax imposed by this Act by operation of

 

 

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1  federal law. This paragraph is exempt from the provisions of
2  Section 3-90.
3  (40) Qualified tangible personal property used in the
4  construction or operation of a data center that has been
5  granted a certificate of exemption by the Department of
6  Commerce and Economic Opportunity, whether that tangible
7  personal property is purchased by the owner, operator, or
8  tenant of the data center or by a contractor or subcontractor
9  of the owner, operator, or tenant. Data centers that would
10  have qualified for a certificate of exemption prior to January
11  1, 2020 had Public Act 101-31 been in effect may apply for and
12  obtain an exemption for subsequent purchases of computer
13  equipment or enabling software purchased or leased to upgrade,
14  supplement, or replace computer equipment or enabling software
15  purchased or leased in the original investment that would have
16  qualified.
17  The Department of Commerce and Economic Opportunity shall
18  grant a certificate of exemption under this item (40) to
19  qualified data centers as defined by Section 605-1025 of the
20  Department of Commerce and Economic Opportunity Law of the
21  Civil Administrative Code of Illinois.
22  For the purposes of this item (40):
23  "Data center" means a building or a series of
24  buildings rehabilitated or constructed to house working
25  servers in one physical location or multiple sites within
26  the State of Illinois.

 

 

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

 

 

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1  Commerce and Economic Opportunity.
2  This item (40) is exempt from the provisions of Section
3  3-90.
4  (41) Beginning July 1, 2022, breast pumps, breast pump
5  collection and storage supplies, and breast pump kits. This
6  item (41) is exempt from the provisions of Section 3-90. As
7  used in this item (41):
8  "Breast pump" means an electrically controlled or
9  manually controlled pump device designed or marketed to be
10  used to express milk from a human breast during lactation,
11  including the pump device and any battery, AC adapter, or
12  other power supply unit that is used to power the pump
13  device and is packaged and sold with the pump device at the
14  time of sale.
15  "Breast pump collection and storage supplies" means
16  items of tangible personal property designed or marketed
17  to be used in conjunction with a breast pump to collect
18  milk expressed from a human breast and to store collected
19  milk until it is ready for consumption.
20  "Breast pump collection and storage supplies"
21  includes, but is not limited to: breast shields and breast
22  shield connectors; breast pump tubes and tubing adapters;
23  breast pump valves and membranes; backflow protectors and
24  backflow protector adaptors; bottles and bottle caps
25  specific to the operation of the breast pump; and breast
26  milk storage bags.

 

 

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1  "Breast pump collection and storage supplies" does not
2  include: (1) bottles and bottle caps not specific to the
3  operation of the breast pump; (2) breast pump travel bags
4  and other similar carrying accessories, including ice
5  packs, labels, and other similar products; (3) breast pump
6  cleaning supplies; (4) nursing bras, bra pads, breast
7  shells, and other similar products; and (5) creams,
8  ointments, and other similar products that relieve
9  breastfeeding-related symptoms or conditions of the
10  breasts or nipples, unless sold as part of a breast pump
11  kit that is pre-packaged by the breast pump manufacturer
12  or distributor.
13  "Breast pump kit" means a kit that: (1) contains no
14  more than a breast pump, breast pump collection and
15  storage supplies, a rechargeable battery for operating the
16  breast pump, a breastmilk cooler, bottle stands, ice
17  packs, and a breast pump carrying case; and (2) is
18  pre-packaged as a breast pump kit by the breast pump
19  manufacturer or distributor.
20  (42) Tangible personal property sold by or on behalf of
21  the State Treasurer pursuant to the Revised Uniform Unclaimed
22  Property Act. This item (42) is exempt from the provisions of
23  Section 3-90.
24  (43) Beginning on January 1, 2024, tangible personal
25  property purchased by an active duty member of the armed
26  forces of the United States who presents valid military

 

 

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1  identification and purchases the property using a form of
2  payment where the federal government is the payor. The member
3  of the armed forces must complete, at the point of sale, a form
4  prescribed by the Department of Revenue documenting that the
5  transaction is eligible for the exemption under this
6  paragraph. Retailers must keep the form as documentation of
7  the exemption in their records for a period of not less than 6
8  years. "Armed forces of the United States" means the United
9  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
10  This paragraph is exempt from the provisions of Section 3-90.
11  (44) Beginning on January 1, 2026, as further defined in
12  Section 3-10, food for human consumption that is to be
13  consumed off the premises where it is sold (other than
14  alcoholic beverages, food consisting of or infused with adult
15  use cannabis, soft drinks, candy, and food that has been
16  prepared for immediate consumption). This item (44) is exempt
17  from the provisions of Section 3-90.
18  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
19  Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
20  eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
21  Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
22  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
23  revised 12-12-23.)
24  (35 ILCS 105/3-10)
25  Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

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1  Section, the tax imposed by this Act is at the rate of 6.25% of
2  either the selling price or the fair market value, if any, of
3  the tangible personal property. In all cases where property
4  functionally used or consumed is the same as the property that
5  was purchased at retail, then the tax is imposed on the selling
6  price of the property. In all cases where property
7  functionally used or consumed is a by-product or waste product
8  that has been refined, manufactured, or produced from property
9  purchased at retail, then the tax is imposed on the lower of
10  the fair market value, if any, of the specific property so used
11  in this State or on the selling price of the property purchased
12  at retail. For purposes of this Section "fair market value"
13  means the price at which property would change hands between a
14  willing buyer and a willing seller, neither being under any
15  compulsion to buy or sell and both having reasonable knowledge
16  of the relevant facts. The fair market value shall be
17  established by Illinois sales by the taxpayer of the same
18  property as that functionally used or consumed, or if there
19  are no such sales by the taxpayer, then comparable sales or
20  purchases of property of like kind and character in Illinois.
21  Beginning on July 1, 2000 and through December 31, 2000,
22  with respect to motor fuel, as defined in Section 1.1 of the
23  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
24  the Use Tax Act, the tax is imposed at the rate of 1.25%.
25  Beginning on August 6, 2010 through August 15, 2010, and
26  beginning again on August 5, 2022 through August 14, 2022,

 

 

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1  with respect to sales tax holiday items as defined in Section
2  3-6 of this Act, the tax is imposed at the rate of 1.25%.
3  With respect to gasohol, the tax imposed by this Act
4  applies to (i) 70% of the proceeds of sales made on or after
5  January 1, 1990, and before July 1, 2003, (ii) 80% of the
6  proceeds of sales made on or after July 1, 2003 and on or
7  before July 1, 2017, (iii) 100% of the proceeds of sales made
8  after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
9  the proceeds of sales made on or after January 1, 2024 and on
10  or before December 31, 2028, and (v) 100% of the proceeds of
11  sales made after December 31, 2028. If, at any time, however,
12  the tax under this Act on sales of gasohol is imposed at the
13  rate of 1.25%, then the tax imposed by this Act applies to 100%
14  of the proceeds of sales of gasohol made during that time.
15  With respect to mid-range ethanol blends, the tax imposed
16  by this Act applies to (i) 80% of the proceeds of sales made on
17  or after January 1, 2024 and on or before December 31, 2028 and
18  (ii) 100% of the proceeds of sales made thereafter. If, at any
19  time, however, the tax under this Act on sales of mid-range
20  ethanol blends is imposed at the rate of 1.25%, then the tax
21  imposed by this Act applies to 100% of the proceeds of sales of
22  mid-range ethanol blends made during that time.
23  With respect to majority blended ethanol fuel, the tax
24  imposed by this Act does not apply to the proceeds of sales
25  made on or after July 1, 2003 and on or before December 31,
26  2028 but applies to 100% of the proceeds of sales made

 

 

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1  thereafter.
2  With respect to biodiesel blends with no less than 1% and
3  no more than 10% biodiesel, the tax imposed by this Act applies
4  to (i) 80% of the proceeds of sales made on or after July 1,
5  2003 and on or before December 31, 2018 and (ii) 100% of the
6  proceeds of sales made after December 31, 2018 and before
7  January 1, 2024. On and after January 1, 2024 and on or before
8  December 31, 2030, the taxation of biodiesel, renewable
9  diesel, and biodiesel blends shall be as provided in Section
10  3-5.1. If, at any time, however, the tax under this Act on
11  sales of biodiesel blends with no less than 1% and no more than
12  10% biodiesel is imposed at the rate of 1.25%, then the tax
13  imposed by this Act applies to 100% of the proceeds of sales of
14  biodiesel blends with no less than 1% and no more than 10%
15  biodiesel made during that time.
16  With respect to biodiesel and biodiesel blends with more
17  than 10% but no more than 99% biodiesel, the tax imposed by
18  this Act does not apply to the proceeds of sales made on or
19  after July 1, 2003 and on or before December 31, 2023. On and
20  after January 1, 2024 and on or before December 31, 2030, the
21  taxation of biodiesel, renewable diesel, and biodiesel blends
22  shall be as provided in Section 3-5.1.
23  Until July 1, 2022 and from beginning again on July 1, 2023
24  through December 31, 2025, with respect to food for human
25  consumption that is to be consumed off the premises where it is
26  sold (other than alcoholic beverages, food consisting of or

 

 

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1  infused with adult use cannabis, soft drinks, and food that
2  has been prepared for immediate consumption), the tax is
3  imposed at the rate of 1%. Beginning on July 1, 2022 and until
4  July 1, 2023, with respect to food for human consumption that
5  is to be consumed off the premises where it is sold (other than
6  alcoholic beverages, food consisting of or infused with adult
7  use cannabis, soft drinks, and food that has been prepared for
8  immediate consumption), the tax is imposed at the rate of 0%.
9  On and after January 1, 2026, food for human consumption that
10  is to be consumed off the premises where it is sold (other than
11  alcoholic beverages, food consisting of or infused with adult
12  use cannabis, soft drinks, candy, and food that has been
13  prepared for immediate consumption) is exempt from the tax
14  imposed by this Act.
15  With respect to prescription and nonprescription
16  medicines, drugs, medical appliances, products classified as
17  Class III medical devices by the United States Food and Drug
18  Administration that are used for cancer treatment pursuant to
19  a prescription, as well as any accessories and components
20  related to those devices, modifications to a motor vehicle for
21  the purpose of rendering it usable by a person with a
22  disability, and insulin, blood sugar testing materials,
23  syringes, and needles used by human diabetics, the tax is
24  imposed at the rate of 1%. For the purposes of this Section,
25  until September 1, 2009: the term "soft drinks" means any
26  complete, finished, ready-to-use, non-alcoholic drink, whether

 

 

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1  carbonated or not, including, but not limited to, soda water,
2  cola, fruit juice, vegetable juice, carbonated water, and all
3  other preparations commonly known as soft drinks of whatever
4  kind or description that are contained in any closed or sealed
5  bottle, can, carton, or container, regardless of size; but
6  "soft drinks" does not include coffee, tea, non-carbonated
7  water, infant formula, milk or milk products as defined in the
8  Grade A Pasteurized Milk and Milk Products Act, or drinks
9  containing 50% or more natural fruit or vegetable juice.
10  Notwithstanding any other provisions of this Act,
11  beginning September 1, 2009, "soft drinks" means non-alcoholic
12  beverages that contain natural or artificial sweeteners. "Soft
13  drinks" does not include beverages that contain milk or milk
14  products, soy, rice or similar milk substitutes, or greater
15  than 50% of vegetable or fruit juice by volume.
16  Until August 1, 2009, and notwithstanding any other
17  provisions of this Act, "food for human consumption that is to
18  be consumed off the premises where it is sold" includes all
19  food sold through a vending machine, except soft drinks and
20  food products that are dispensed hot from a vending machine,
21  regardless of the location of the vending machine. Beginning
22  August 1, 2009, and notwithstanding any other provisions of
23  this Act, "food for human consumption that is to be consumed
24  off the premises where it is sold" includes all food sold
25  through a vending machine, except soft drinks, candy, and food
26  products that are dispensed hot from a vending machine,

 

 

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1  regardless of the location of the vending machine.
2  Notwithstanding any other provisions of this Act,
3  beginning September 1, 2009, "food for human consumption that
4  is to be consumed off the premises where it is sold" does not
5  include candy. For purposes of this Section, "candy" means a
6  preparation of sugar, honey, or other natural or artificial
7  sweeteners in combination with chocolate, fruits, nuts or
8  other ingredients or flavorings in the form of bars, drops, or
9  pieces. "Candy" does not include any preparation that contains
10  flour or requires refrigeration.
11  Notwithstanding any other provisions of this Act,
12  beginning September 1, 2009, "nonprescription medicines and
13  drugs" does not include grooming and hygiene products. For
14  purposes of this Section, "grooming and hygiene products"
15  includes, but is not limited to, soaps and cleaning solutions,
16  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17  lotions and screens, unless those products are available by
18  prescription only, regardless of whether the products meet the
19  definition of "over-the-counter-drugs". For the purposes of
20  this paragraph, "over-the-counter-drug" means a drug for human
21  use that contains a label that identifies the product as a drug
22  as required by 21 CFR 201.66. The "over-the-counter-drug"
23  label includes:
24  (A) a "Drug Facts" panel; or
25  (B) a statement of the "active ingredient(s)" with a
26  list of those ingredients contained in the compound,

 

 

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1  substance or preparation.
2  Beginning on January 1, 2014 (the effective date of Public
3  Act 98-122), "prescription and nonprescription medicines and
4  drugs" includes medical cannabis purchased from a registered
5  dispensing organization under the Compassionate Use of Medical
6  Cannabis Program Act.
7  As used in this Section, "adult use cannabis" means
8  cannabis subject to tax under the Cannabis Cultivation
9  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
10  and does not include cannabis subject to tax under the
11  Compassionate Use of Medical Cannabis Program Act.
12  If the property that is purchased at retail from a
13  retailer is acquired outside Illinois and used outside
14  Illinois before being brought to Illinois for use here and is
15  taxable under this Act, the "selling price" on which the tax is
16  computed shall be reduced by an amount that represents a
17  reasonable allowance for depreciation for the period of prior
18  out-of-state use.
19  (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
20  Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
21  60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
22  4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
23  Section 10. The Service Use Tax Act is amended by changing
24  Sections 3-5 and 3-10 as follows:

 

 

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1  (35 ILCS 110/3-5)
2  Sec. 3-5. Exemptions. Use of the following tangible
3  personal property is exempt from the tax imposed by this Act:
4  (1) Personal property purchased from a corporation,
5  society, association, foundation, institution, or
6  organization, other than a limited liability company, that is
7  organized and operated as a not-for-profit service enterprise
8  for the benefit of persons 65 years of age or older if the
9  personal property was not purchased by the enterprise for the
10  purpose of resale by the enterprise.
11  (2) Personal property purchased by a non-profit Illinois
12  county fair association for use in conducting, operating, or
13  promoting the county fair.
14  (3) Personal property purchased by a not-for-profit arts
15  or cultural organization that establishes, by proof required
16  by the Department by rule, that it has received an exemption
17  under Section 501(c)(3) of the Internal Revenue Code and that
18  is organized and operated primarily for the presentation or
19  support of arts or cultural programming, activities, or
20  services. These organizations include, but are not limited to,
21  music and dramatic arts organizations such as symphony
22  orchestras and theatrical groups, arts and cultural service
23  organizations, local arts councils, visual arts organizations,
24  and media arts organizations. On and after July 1, 2001 (the
25  effective date of Public Act 92-35), however, an entity
26  otherwise eligible for this exemption shall not make tax-free

 

 

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

 

 

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

 

 

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1  to, the collection, monitoring, and correlation of animal and
2  crop data for the purpose of formulating animal diets and
3  agricultural chemicals.
4  Beginning on January 1, 2024, farm machinery and equipment
5  also includes electrical power generation equipment used
6  primarily for production agriculture.
7  This item (7) is exempt from the provisions of Section
8  3-75.
9  (8) 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  (9) 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 acquired as an incident to the purchase of a
3  service from a serviceman, to the extent that the proceeds of
4  the service charge are in fact turned over as tips or as a
5  substitute for tips to the employees who participate directly
6  in preparing, serving, hosting or cleaning up the food or
7  beverage function with respect to which the service charge is
8  imposed.
9  (10) Until July 1, 2003, oil field exploration, drilling,
10  and production equipment, including (i) rigs and parts of
11  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
12  pipe and tubular goods, including casing and drill strings,
13  (iii) pumps and pump-jack units, (iv) storage tanks and flow
14  lines, (v) any individual replacement part for oil field
15  exploration, drilling, and production equipment, and (vi)
16  machinery and equipment purchased for lease; but excluding
17  motor vehicles required to be registered under the Illinois
18  Vehicle Code.
19  (11) Proceeds from the sale of photoprocessing machinery
20  and equipment, including repair and replacement parts, both
21  new and used, including that manufactured on special order,
22  certified by the purchaser to be used primarily for
23  photoprocessing, and including photoprocessing machinery and
24  equipment purchased for lease.
25  (12) Until July 1, 2028, coal and aggregate exploration,
26  mining, off-highway hauling, processing, maintenance, and

 

 

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1  reclamation equipment, including replacement parts and
2  equipment, and including equipment purchased for lease, but
3  excluding motor vehicles required to be registered under the
4  Illinois Vehicle Code. The changes made to this Section by
5  Public Act 97-767 apply on and after July 1, 2003, but no claim
6  for credit or refund is allowed on or after August 16, 2013
7  (the effective date of Public Act 98-456) for such taxes paid
8  during the period beginning July 1, 2003 and ending on August
9  16, 2013 (the effective date of Public Act 98-456).
10  (13) Semen used for artificial insemination of livestock
11  for direct agricultural production.
12  (14) Horses, or interests in horses, registered with and
13  meeting the requirements of any of the Arabian Horse Club
14  Registry of America, Appaloosa Horse Club, American Quarter
15  Horse Association, United States Trotting Association, or
16  Jockey Club, as appropriate, used for purposes of breeding or
17  racing for prizes. This item (14) is exempt from the
18  provisions of Section 3-75, and the exemption provided for
19  under this item (14) applies for all periods beginning May 30,
20  1995, but no claim for credit or refund is allowed on or after
21  January 1, 2008 (the effective date of Public Act 95-88) for
22  such taxes paid during the period beginning May 30, 2000 and
23  ending on January 1, 2008 (the effective date of Public Act
24  95-88).
25  (15) Computers and communications equipment utilized for
26  any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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1  the Department under Section 1g of the Retailers' Occupation
2  Tax Act. If the property is leased in a manner that does not
3  qualify for this exemption or is used in any other non-exempt
4  manner, the lessor shall be liable for the tax imposed under
5  this Act or the Use Tax Act, as the case may be, based on the
6  fair market value of the property at the time the
7  non-qualifying use occurs. No lessor shall collect or attempt
8  to collect an amount (however designated) that purports to
9  reimburse that lessor for the tax imposed by this Act or the
10  Use Tax Act, as the case may be, if the tax has not been paid
11  by the lessor. If a lessor improperly collects any such amount
12  from the lessee, the lessee shall have a legal right to claim a
13  refund of that amount from the lessor. If, however, that
14  amount is not refunded to the lessee for any reason, the lessor
15  is liable to pay that amount to the Department.
16  (17) Beginning with taxable years ending on or after
17  December 31, 1995 and ending with taxable years ending on or
18  before December 31, 2004, personal property that is donated
19  for disaster relief to be used in a State or federally declared
20  disaster area in Illinois or bordering Illinois by a
21  manufacturer or retailer that is registered in this State to a
22  corporation, society, association, foundation, or institution
23  that has been issued a sales tax exemption identification
24  number by the Department that assists victims of the disaster
25  who reside within the declared disaster area.
26  (18) 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 used in
3  the performance of infrastructure repairs in this State,
4  including, but not limited to, municipal roads and streets,
5  access roads, bridges, sidewalks, waste disposal systems,
6  water and sewer line extensions, water distribution and
7  purification facilities, storm water drainage and retention
8  facilities, and sewage treatment facilities, resulting from a
9  State or federally declared disaster in Illinois or bordering
10  Illinois when such repairs are initiated on facilities located
11  in the declared disaster area within 6 months after the
12  disaster.
13  (19) Beginning July 1, 1999, game or game birds purchased
14  at a "game breeding and hunting preserve area" as that term is
15  used in the Wildlife Code. This paragraph is exempt from the
16  provisions of Section 3-75.
17  (20) A motor vehicle, as that term is defined in Section
18  1-146 of the Illinois Vehicle Code, that is donated to a
19  corporation, limited liability company, society, association,
20  foundation, or institution that is determined by the
21  Department to be organized and operated exclusively for
22  educational purposes. For purposes of this exemption, "a
23  corporation, limited liability company, society, association,
24  foundation, or institution organized and operated exclusively
25  for educational purposes" means all tax-supported public
26  schools, private schools that offer systematic instruction in

 

 

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1  useful branches of learning by methods common to public
2  schools and that compare favorably in their scope and
3  intensity with the course of study presented in tax-supported
4  schools, and vocational or technical schools or institutes
5  organized and operated exclusively to provide a course of
6  study of not less than 6 weeks duration and designed to prepare
7  individuals to follow a trade or to pursue a manual,
8  technical, mechanical, industrial, business, or commercial
9  occupation.
10  (21) Beginning January 1, 2000, personal property,
11  including food, purchased through fundraising events for the
12  benefit of a public or private elementary or secondary school,
13  a group of those schools, or one or more school districts if
14  the events are sponsored by an entity recognized by the school
15  district that consists primarily of volunteers and includes
16  parents and teachers of the school children. This paragraph
17  does not apply to fundraising events (i) for the benefit of
18  private home instruction or (ii) for which the fundraising
19  entity purchases the personal property sold at the events from
20  another individual or entity that sold the property for the
21  purpose of resale by the fundraising entity and that profits
22  from the sale to the fundraising entity. This paragraph is
23  exempt from the provisions of Section 3-75.
24  (22) Beginning January 1, 2000 and through December 31,
25  2001, new or used automatic vending machines that prepare and
26  serve hot food and beverages, including coffee, soup, and

 

 

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

 

 

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

 

 

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1  Occupation Tax Act. If the property is leased in a manner that
2  does not qualify for this exemption or is used in any other
3  nonexempt manner, the lessor shall be liable for the tax
4  imposed under this Act or the Use Tax Act, as the case may be,
5  based on the fair market value of the property at the time the
6  nonqualifying use occurs. No lessor shall collect or attempt
7  to collect an amount (however designated) that purports to
8  reimburse that lessor for the tax imposed by this Act or the
9  Use Tax Act, as the case may be, if the tax has not been paid
10  by the lessor. If a lessor improperly collects any such amount
11  from the lessee, the lessee shall have a legal right to claim a
12  refund of that amount from the lessor. If, however, that
13  amount is not refunded to the lessee for any reason, the lessor
14  is liable to pay that amount to the Department. This paragraph
15  is exempt from the provisions of Section 3-75.
16  (26) Beginning January 1, 2008, tangible personal property
17  used in the construction or maintenance of a community water
18  supply, as defined under Section 3.145 of the Environmental
19  Protection Act, that is operated by a not-for-profit
20  corporation that holds a valid water supply permit issued
21  under Title IV of the Environmental Protection Act. This
22  paragraph is exempt from the provisions of Section 3-75.
23  (27) Beginning January 1, 2010 and continuing through
24  December 31, 2029, materials, parts, equipment, components,
25  and furnishings incorporated into or upon an aircraft as part
26  of the modification, refurbishment, completion, replacement,

 

 

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1  repair, or maintenance of the aircraft. This exemption
2  includes consumable supplies used in the modification,
3  refurbishment, completion, replacement, repair, and
4  maintenance of aircraft. However, until January 1, 2024, this
5  exemption excludes any materials, parts, equipment,
6  components, and consumable supplies used in the modification,
7  replacement, repair, and maintenance of aircraft engines or
8  power plants, whether such engines or power plants are
9  installed or uninstalled upon any such aircraft. "Consumable
10  supplies" include, but are not limited to, adhesive, tape,
11  sandpaper, general purpose lubricants, cleaning solution,
12  latex gloves, and protective films.
13  Beginning January 1, 2010 and continuing through December
14  31, 2023, this exemption applies only to the use of qualifying
15  tangible personal property transferred incident to the
16  modification, refurbishment, completion, replacement, repair,
17  or maintenance of aircraft by persons who (i) hold an Air
18  Agency Certificate and are empowered to operate an approved
19  repair station by the Federal Aviation Administration, (ii)
20  have a Class IV Rating, and (iii) conduct operations in
21  accordance with Part 145 of the Federal Aviation Regulations.
22  From January 1, 2024 through December 31, 2029, this exemption
23  applies only to the use of qualifying tangible personal
24  property by: (A) persons who modify, refurbish, complete,
25  repair, replace, or maintain aircraft and who (i) hold an Air
26  Agency Certificate and are empowered to operate an approved

 

 

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

 

 

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1  of the completion of the municipal convention hall or upon the
2  retirement or redemption of any bonds or other debt
3  instruments issued by the public-facilities corporation in
4  connection with the development of the municipal convention
5  hall. This exemption includes existing public-facilities
6  corporations as provided in Section 11-65-25 of the Illinois
7  Municipal Code. This paragraph is exempt from the provisions
8  of Section 3-75.
9  (29) Beginning January 1, 2017 and through December 31,
10  2026, menstrual pads, tampons, and menstrual cups.
11  (30) Tangible personal property transferred to a purchaser
12  who is exempt from the tax imposed by this Act by operation of
13  federal law. This paragraph is exempt from the provisions of
14  Section 3-75.
15  (31) Qualified tangible personal property used in the
16  construction or operation of a data center that has been
17  granted a certificate of exemption by the Department of
18  Commerce and Economic Opportunity, whether that tangible
19  personal property is purchased by the owner, operator, or
20  tenant of the data center or by a contractor or subcontractor
21  of the owner, operator, or tenant. Data centers that would
22  have qualified for a certificate of exemption prior to January
23  1, 2020 had Public Act 101-31 been in effect, may apply for and
24  obtain an exemption for subsequent purchases of computer
25  equipment or enabling software purchased or leased to upgrade,
26  supplement, or replace computer equipment or enabling software

 

 

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

 

 

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

 

 

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

 

 

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1  storage supplies, a rechargeable battery for operating the
2  breast pump, a breastmilk cooler, bottle stands, ice
3  packs, and a breast pump carrying case; and (2) is
4  pre-packaged as a breast pump kit by the breast pump
5  manufacturer or distributor.
6  (33) Tangible personal property sold by or on behalf of
7  the State Treasurer pursuant to the Revised Uniform Unclaimed
8  Property Act. This item (33) is exempt from the provisions of
9  Section 3-75.
10  (34) Beginning on January 1, 2024, tangible personal
11  property purchased by an active duty member of the armed
12  forces of the United States who presents valid military
13  identification and purchases the property using a form of
14  payment where the federal government is the payor. The member
15  of the armed forces must complete, at the point of sale, a form
16  prescribed by the Department of Revenue documenting that the
17  transaction is eligible for the exemption under this
18  paragraph. Retailers must keep the form as documentation of
19  the exemption in their records for a period of not less than 6
20  years. "Armed forces of the United States" means the United
21  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
22  This paragraph is exempt from the provisions of Section 3-75.
23  (35) Beginning on January 1, 2026, as further defined in
24  Section 3-10, food prepared for immediate consumption and
25  transferred incident to a sale of service subject to this Act
26  or the Service Occupation Tax Act by an entity licensed under

 

 

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1  the Hospital Licensing Act, the Nursing Home Care Act, the
2  Assisted Living and Shared Housing Act, the ID/DD Community
3  Care Act, the MC/DD Act, the Specialized Mental Health
4  Rehabilitation Act of 2013, or the Child Care Act of 1969, or
5  by an entity that holds a permit issued pursuant to the Life
6  Care Facilities Act. This item (35) is exempt from the
7  provisions of Section 3-75.
8  (36) Beginning on January 1, 2026, as further defined in
9  Section 3-10, food for human consumption that is to be
10  consumed off the premises where it is sold (other than
11  alcoholic beverages, food consisting of or infused with adult
12  use cannabis, soft drinks, candy, and food that has been
13  prepared for immediate consumption). This item (36) is exempt
14  from the provisions of Section 3-75.
15  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
16  Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
17  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
18  Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
19  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
20  revised 12-12-23.)
21  (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
22  Sec. 3-10. Rate of tax. Unless otherwise provided in this
23  Section, the tax imposed by this Act is at the rate of 6.25% of
24  the selling price of tangible personal property transferred as
25  an incident to the sale of service, but, for the purpose of

 

 

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1  computing this tax, in no event shall the selling price be less
2  than the cost price of the property to the serviceman.
3  Beginning on July 1, 2000 and through December 31, 2000,
4  with respect to motor fuel, as defined in Section 1.1 of the
5  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6  the Use Tax Act, the tax is imposed at the rate of 1.25%.
7  With respect to gasohol, as defined in the Use Tax Act, the
8  tax imposed by this Act applies to (i) 70% of the selling price
9  of property transferred as an incident to the sale of service
10  on or after January 1, 1990, and before July 1, 2003, (ii) 80%
11  of the selling price of property transferred as an incident to
12  the sale of service on or after July 1, 2003 and on or before
13  July 1, 2017, (iii) 100% of the selling price of property
14  transferred as an incident to the sale of service after July 1,
15  2017 and before January 1, 2024, (iv) 90% of the selling price
16  of property transferred as an incident to the sale of service
17  on or after January 1, 2024 and on or before December 31, 2028,
18  and (v) 100% of the selling price of property transferred as an
19  incident to the sale of service after December 31, 2028. If, at
20  any time, however, the tax under this Act on sales of gasohol,
21  as defined in the Use Tax Act, is imposed at the rate of 1.25%,
22  then the tax imposed by this Act applies to 100% of the
23  proceeds of sales of gasohol made during that time.
24  With respect to mid-range ethanol blends, as defined in
25  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
26  applies to (i) 80% of the selling price of property

 

 

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1  transferred as an incident to the sale of service on or after
2  January 1, 2024 and on or before December 31, 2028 and (ii)
3  100% of the selling price of property transferred as an
4  incident to the sale of service after December 31, 2028. If, at
5  any time, however, the tax under this Act on sales of mid-range
6  ethanol blends is imposed at the rate of 1.25%, then the tax
7  imposed by this Act applies to 100% of the selling price of
8  mid-range ethanol blends transferred as an incident to the
9  sale of service during that time.
10  With respect to majority blended ethanol fuel, as defined
11  in the Use Tax Act, the tax imposed by this Act does not apply
12  to the selling price of property transferred as an incident to
13  the sale of service on or after July 1, 2003 and on or before
14  December 31, 2028 but applies to 100% of the selling price
15  thereafter.
16  With respect to biodiesel blends, as defined in the Use
17  Tax Act, with no less than 1% and no more than 10% biodiesel,
18  the tax imposed by this Act applies to (i) 80% of the selling
19  price of property transferred as an incident to the sale of
20  service on or after July 1, 2003 and on or before December 31,
21  2018 and (ii) 100% of the proceeds of the selling price after
22  December 31, 2018 and before January 1, 2024. On and after
23  January 1, 2024 and on or before December 31, 2030, the
24  taxation of biodiesel, renewable diesel, and biodiesel blends
25  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
26  at any time, however, the tax under this Act on sales of

 

 

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1  biodiesel blends, as defined in the Use Tax Act, with no less
2  than 1% and no more than 10% biodiesel is imposed at the rate
3  of 1.25%, then the tax imposed by this Act applies to 100% of
4  the proceeds of sales of biodiesel blends with no less than 1%
5  and no more than 10% biodiesel made during that time.
6  With respect to biodiesel, as defined in the Use Tax Act,
7  and biodiesel blends, as defined in the Use Tax Act, with more
8  than 10% but no more than 99% biodiesel, the tax imposed by
9  this Act does not apply to the proceeds of the selling price of
10  property transferred as an incident to the sale of service on
11  or after July 1, 2003 and on or before December 31, 2023. On
12  and after January 1, 2024 and on or before December 31, 2030,
13  the taxation of biodiesel, renewable diesel, and biodiesel
14  blends shall be as provided in Section 3-5.1 of the Use Tax
15  Act.
16  At the election of any registered serviceman made for each
17  fiscal year, sales of service in which the aggregate annual
18  cost price of tangible personal property transferred as an
19  incident to the sales of service is less than 35%, or 75% in
20  the case of servicemen transferring prescription drugs or
21  servicemen engaged in graphic arts production, of the
22  aggregate annual total gross receipts from all sales of
23  service, the tax imposed by this Act shall be based on the
24  serviceman's cost price of the tangible personal property
25  transferred as an incident to the sale of those services.
26  Until July 1, 2022 and from beginning again on July 1, 2023

 

 

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1  through December 31, 2025, the tax shall be imposed at the rate
2  of 1% on food prepared for immediate consumption and
3  transferred incident to a sale of service subject to this Act
4  or the Service Occupation Tax Act by an entity licensed under
5  the Hospital Licensing Act, the Nursing Home Care Act, the
6  Assisted Living and Shared Housing Act, the ID/DD Community
7  Care Act, the MC/DD Act, the Specialized Mental Health
8  Rehabilitation Act of 2013, or the Child Care Act of 1969, or
9  an entity that holds a permit issued pursuant to the Life Care
10  Facilities Act. Until July 1, 2022 and from beginning again on
11  July 1, 2023 through December 31, 2025, the tax shall also be
12  imposed at the rate of 1% on food for human consumption that is
13  to be consumed off the premises where it is sold (other than
14  alcoholic beverages, food consisting of or infused with adult
15  use cannabis, soft drinks, and food that has been prepared for
16  immediate consumption and is not otherwise included in this
17  paragraph).
18  Beginning on July 1, 2022 and until July 1, 2023, the tax
19  shall be imposed at the rate of 0% on food prepared for
20  immediate consumption and transferred incident to a sale of
21  service subject to this Act or the Service Occupation Tax Act
22  by an entity licensed under the Hospital Licensing Act, the
23  Nursing Home Care Act, the Assisted Living and Shared Housing
24  Act, the ID/DD Community Care Act, the MC/DD Act, the
25  Specialized Mental Health Rehabilitation Act of 2013, or the
26  Child Care Act of 1969, or an entity that holds a permit issued

 

 

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1  pursuant to the Life Care Facilities Act. Beginning on July 1,
2  2022 and until July 1, 2023, the tax shall also be imposed at
3  the rate of 0% on food for human consumption that is to be
4  consumed off the premises where it is sold (other than
5  alcoholic beverages, food consisting of or infused with adult
6  use cannabis, soft drinks, and food that has been prepared for
7  immediate consumption and is not otherwise included in this
8  paragraph).
9  On an after January 1, 2026, food prepared for immediate
10  consumption and transferred incident to a sale of service
11  subject to this Act or the Service Occupation Tax Act by an
12  entity licensed under the Hospital Licensing Act, the Nursing
13  Home Care Act, the Assisted Living and Shared Housing Act, the
14  ID/DD Community Care Act, the MC/DD Act, the Specialized
15  Mental Health Rehabilitation Act of 2013, or the Child Care
16  Act of 1969, or by an entity that holds a permit issued
17  pursuant to the Life Care Facilities Act is exempt from the tax
18  under this Act. On and after January 1, 2026, food for human
19  consumption that is to be consumed off the premises where it is
20  sold (other than alcoholic beverages, food consisting of or
21  infused with adult use cannabis, soft drinks, candy, and food
22  that has been prepared for immediate consumption and is not
23  otherwise included in this paragraph) is exempt from the tax
24  under this Act.
25  The tax shall also be imposed at the rate of 1% on
26  prescription and nonprescription medicines, drugs, medical

 

 

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1  appliances, products classified as Class III medical devices
2  by the United States Food and Drug Administration that are
3  used for cancer treatment pursuant to a prescription, as well
4  as any accessories and components related to those devices,
5  modifications to a motor vehicle for the purpose of rendering
6  it usable by a person with a disability, and insulin, blood
7  sugar testing materials, syringes, and needles used by human
8  diabetics. For the purposes of this Section, until September
9  1, 2009: the term "soft drinks" means any complete, finished,
10  ready-to-use, non-alcoholic drink, whether carbonated or not,
11  including, but not limited to, soda water, cola, fruit juice,
12  vegetable juice, carbonated water, and all other preparations
13  commonly known as soft drinks of whatever kind or description
14  that are contained in any closed or sealed bottle, can,
15  carton, or container, regardless of size; but "soft drinks"
16  does not include coffee, tea, non-carbonated water, infant
17  formula, milk or milk products as defined in the Grade A
18  Pasteurized Milk and Milk Products Act, or drinks containing
19  50% or more natural fruit or vegetable juice.
20  Notwithstanding any other provisions of this Act,
21  beginning September 1, 2009, "soft drinks" means non-alcoholic
22  beverages that contain natural or artificial sweeteners. "Soft
23  drinks" does not include beverages that contain milk or milk
24  products, soy, rice or similar milk substitutes, or greater
25  than 50% of vegetable or fruit juice by volume.
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1  provisions of this Act, "food for human consumption that is to
2  be consumed off the premises where it is sold" includes all
3  food sold through a vending machine, except soft drinks and
4  food products that are dispensed hot from a vending machine,
5  regardless of the location of the vending machine. Beginning
6  August 1, 2009, and notwithstanding any other provisions of
7  this Act, "food for human consumption that is to be consumed
8  off the premises where it is sold" includes all food sold
9  through a vending machine, except soft drinks, candy, and food
10  products that are dispensed hot from a vending machine,
11  regardless of the location of the vending machine.
12  Notwithstanding any other provisions of this Act,
13  beginning September 1, 2009, "food for human consumption that
14  is to be consumed off the premises where it is sold" does not
15  include candy. For purposes of this Section, "candy" means a
16  preparation of sugar, honey, or other natural or artificial
17  sweeteners in combination with chocolate, fruits, nuts or
18  other ingredients or flavorings in the form of bars, drops, or
19  pieces. "Candy" does not include any preparation that contains
20  flour or requires refrigeration.
21  Notwithstanding any other provisions of this Act,
22  beginning September 1, 2009, "nonprescription medicines and
23  drugs" does not include grooming and hygiene products. For
24  purposes of this Section, "grooming and hygiene products"
25  includes, but is not limited to, soaps and cleaning solutions,
26  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

 

 

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1  lotions and screens, unless those products are available by
2  prescription only, regardless of whether the products meet the
3  definition of "over-the-counter-drugs". For the purposes of
4  this paragraph, "over-the-counter-drug" means a drug for human
5  use that contains a label that identifies the product as a drug
6  as required by 21 CFR 201.66. The "over-the-counter-drug"
7  label includes:
8  (A) a "Drug Facts" panel; or
9  (B) a statement of the "active ingredient(s)" with a
10  list of those ingredients contained in the compound,
11  substance or preparation.
12  Beginning on January 1, 2014 (the effective date of Public
13  Act 98-122), "prescription and nonprescription medicines and
14  drugs" includes medical cannabis purchased from a registered
15  dispensing organization under the Compassionate Use of Medical
16  Cannabis Program Act.
17  As used in this Section, "adult use cannabis" means
18  cannabis subject to tax under the Cannabis Cultivation
19  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
20  and does not include cannabis subject to tax under the
21  Compassionate Use of Medical Cannabis Program Act.
22  If the property that is acquired from a serviceman is
23  acquired outside Illinois and used outside Illinois before
24  being brought to Illinois for use here and is taxable under
25  this Act, the "selling price" on which the tax is computed
26  shall be reduced by an amount that represents a reasonable

 

 

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1  allowance for depreciation for the period of prior
2  out-of-state use.
3  (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
4  102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
5  Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
6  103-154, eff. 6-30-23.)
7  Section 15. The Service Occupation Tax Act is amended by
8  changing Sections 3-5 and 3-10 as follows:
9  (35 ILCS 115/3-5)
10  Sec. 3-5. Exemptions. The following tangible personal
11  property is exempt from the tax imposed by this Act:
12  (1) Personal property sold by a corporation, society,
13  association, foundation, institution, or organization, other
14  than a limited liability company, that is organized and
15  operated as a not-for-profit service enterprise for the
16  benefit of persons 65 years of age or older if the personal
17  property was not purchased by the enterprise for the purpose
18  of resale by the enterprise.
19  (2) Personal property purchased by a not-for-profit
20  Illinois county fair association for use in conducting,
21  operating, or promoting the county fair.
22  (3) Personal property purchased by any not-for-profit arts
23  or cultural organization that establishes, by proof required
24  by the Department by rule, that it has received an exemption

 

 

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1  under Section 501(c)(3) of the Internal Revenue Code and that
2  is organized and operated primarily for the presentation or
3  support of arts or cultural programming, activities, or
4  services. These organizations include, but are not limited to,
5  music and dramatic arts organizations such as symphony
6  orchestras and theatrical groups, arts and cultural service
7  organizations, local arts councils, visual arts organizations,
8  and media arts organizations. On and after July 1, 2001 (the
9  effective date of Public Act 92-35), however, an entity
10  otherwise eligible for this exemption shall not make tax-free
11  purchases unless it has an active identification number issued
12  by the Department.
13  (4) Legal tender, currency, medallions, or gold or silver
14  coinage issued by the State of Illinois, the government of the
15  United States of America, or the government of any foreign
16  country, and bullion.
17  (5) Until July 1, 2003 and beginning again on September 1,
18  2004 through August 30, 2014, graphic arts machinery and
19  equipment, including repair and replacement parts, both new
20  and used, and including that manufactured on special order or
21  purchased for lease, certified by the purchaser to be used
22  primarily for graphic arts production. Equipment includes
23  chemicals or chemicals acting as catalysts but only if the
24  chemicals or chemicals acting as catalysts effect a direct and
25  immediate change upon a graphic arts product. Beginning on
26  July 1, 2017, graphic arts machinery and equipment is included

 

 

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

 

 

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1  installed on farm machinery and equipment, including, but not
2  limited to, tractors, harvesters, sprayers, planters, seeders,
3  or spreaders. Precision farming equipment includes, but is not
4  limited to, soil testing sensors, computers, monitors,
5  software, global positioning and mapping systems, and other
6  such equipment.
7  Farm machinery and equipment also includes computers,
8  sensors, software, and related equipment used primarily in the
9  computer-assisted operation of production agriculture
10  facilities, equipment, and activities such as, but not limited
11  to, the collection, monitoring, and correlation of animal and
12  crop data for the purpose of formulating animal diets and
13  agricultural chemicals.
14  Beginning on January 1, 2024, farm machinery and equipment
15  also includes electrical power generation equipment used
16  primarily for production agriculture.
17  This item (7) is exempt from the provisions of Section
18  3-55.
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, to the extent that the proceeds of the
13  service charge are in fact turned over as tips or as a
14  substitute for tips to the employees who participate directly
15  in preparing, serving, hosting or cleaning up the food or
16  beverage function with respect to which the service charge is
17  imposed.
18  (10) Until July 1, 2003, oil field exploration, drilling,
19  and production equipment, including (i) rigs and parts of
20  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
21  pipe and tubular goods, including casing and drill strings,
22  (iii) pumps and pump-jack units, (iv) storage tanks and flow
23  lines, (v) any individual replacement part for oil field
24  exploration, drilling, and production equipment, and (vi)
25  machinery and equipment purchased for lease; but excluding
26  motor vehicles required to be registered under the Illinois

 

 

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1  Vehicle Code.
2  (11) Photoprocessing machinery and equipment, including
3  repair and replacement parts, both new and used, including
4  that manufactured on special order, certified by the purchaser
5  to be used primarily for photoprocessing, and including
6  photoprocessing machinery and equipment purchased for lease.
7  (12) Until July 1, 2028, coal and aggregate exploration,
8  mining, off-highway hauling, processing, maintenance, and
9  reclamation equipment, including replacement parts and
10  equipment, and including equipment purchased for lease, but
11  excluding motor vehicles required to be registered under the
12  Illinois Vehicle Code. The changes made to this Section by
13  Public Act 97-767 apply on and after July 1, 2003, but no claim
14  for credit or refund is allowed on or after August 16, 2013
15  (the effective date of Public Act 98-456) for such taxes paid
16  during the period beginning July 1, 2003 and ending on August
17  16, 2013 (the effective date of Public Act 98-456).
18  (13) Beginning January 1, 1992 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 non-prescription 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  (14) Semen used for artificial insemination of livestock
6  for direct agricultural production.
7  (15) Horses, or interests in horses, registered with and
8  meeting the requirements of any of the Arabian Horse Club
9  Registry of America, Appaloosa Horse Club, American Quarter
10  Horse Association, United States Trotting Association, or
11  Jockey Club, as appropriate, used for purposes of breeding or
12  racing for prizes. This item (15) is exempt from the
13  provisions of Section 3-55, and the exemption provided for
14  under this item (15) applies for all periods beginning May 30,
15  1995, but no claim for credit or refund is allowed on or after
16  January 1, 2008 (the effective date of Public Act 95-88) for
17  such taxes paid during the period beginning May 30, 2000 and
18  ending on January 1, 2008 (the effective date of Public Act
19  95-88).
20  (16) Computers and communications equipment utilized for
21  any hospital purpose and equipment used in the diagnosis,
22  analysis, or treatment of hospital patients sold to a lessor
23  who leases the equipment, under a lease of one year or longer
24  executed or in effect at the time of the purchase, to a
25  hospital that has been issued an active tax exemption
26  identification number by the Department under Section 1g of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  transferred to the municipality without any further
2  consideration by or on behalf of the municipality at the time
3  of the completion of the municipal convention hall or upon the
4  retirement or redemption of any bonds or other debt
5  instruments issued by the public-facilities corporation in
6  connection with the development of the municipal convention
7  hall. This exemption includes existing public-facilities
8  corporations as provided in Section 11-65-25 of the Illinois
9  Municipal Code. This paragraph is exempt from the provisions
10  of Section 3-55.
11  (29) Beginning January 1, 2010 and continuing through
12  December 31, 2029, materials, parts, equipment, components,
13  and furnishings incorporated into or upon an aircraft as part
14  of the modification, refurbishment, completion, replacement,
15  repair, or maintenance of the aircraft. This exemption
16  includes consumable supplies used in the modification,
17  refurbishment, completion, replacement, repair, and
18  maintenance of aircraft. However, until January 1, 2024, this
19  exemption excludes any materials, parts, equipment,
20  components, and consumable supplies used in the modification,
21  replacement, repair, and maintenance of aircraft engines or
22  power plants, whether such engines or power plants are
23  installed or uninstalled upon any such aircraft. "Consumable
24  supplies" include, but are not limited to, adhesive, tape,
25  sandpaper, general purpose lubricants, cleaning solution,
26  latex gloves, and protective films.

 

 

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1  Beginning January 1, 2010 and continuing through December
2  31, 2023, this exemption applies only to the transfer of
3  qualifying tangible personal property incident to the
4  modification, refurbishment, completion, replacement, repair,
5  or maintenance of an aircraft by persons who (i) hold an Air
6  Agency Certificate and are empowered to operate an approved
7  repair station by the Federal Aviation Administration, (ii)
8  have a Class IV Rating, and (iii) conduct operations in
9  accordance with Part 145 of the Federal Aviation Regulations.
10  The exemption does not include aircraft operated by a
11  commercial air carrier providing scheduled passenger air
12  service pursuant to authority issued under Part 121 or Part
13  129 of the Federal Aviation Regulations. From January 1, 2024
14  through December 31, 2029, this exemption applies only to the
15  use of qualifying tangible personal property by: (A) persons
16  who modify, refurbish, complete, repair, replace, or maintain
17  aircraft and who (i) hold an Air Agency Certificate and are
18  empowered to operate an approved repair station by the Federal
19  Aviation Administration, (ii) have a Class IV Rating, and
20  (iii) conduct operations in accordance with Part 145 of the
21  Federal Aviation Regulations; and (B) persons who engage in
22  the modification, replacement, repair, and maintenance of
23  aircraft engines or power plants without regard to whether or
24  not those persons meet the qualifications of item (A).
25  The changes made to this paragraph (29) by Public Act
26  98-534 are declarative of existing law. It is the intent of the

 

 

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1  General Assembly that the exemption under this paragraph (29)
2  applies continuously from January 1, 2010 through December 31,
3  2024; however, no claim for credit or refund is allowed for
4  taxes paid as a result of the disallowance of this exemption on
5  or after January 1, 2015 and prior to February 5, 2020 (the
6  effective date of Public Act 101-629).
7  (30) Beginning January 1, 2017 and through December 31,
8  2026, menstrual pads, tampons, and menstrual cups.
9  (31) Tangible personal property transferred to a purchaser
10  who is exempt from tax by operation of federal law. This
11  paragraph is exempt from the provisions of Section 3-55.
12  (32) Qualified tangible personal property used in the
13  construction or operation of a data center that has been
14  granted a certificate of exemption by the Department of
15  Commerce and Economic Opportunity, whether that tangible
16  personal property is purchased by the owner, operator, or
17  tenant of the data center or by a contractor or subcontractor
18  of the owner, operator, or tenant. Data centers that would
19  have qualified for a certificate of exemption prior to January
20  1, 2020 had Public Act 101-31 been in effect, may apply for and
21  obtain an exemption for subsequent purchases of computer
22  equipment or enabling software purchased or leased to upgrade,
23  supplement, or replace computer equipment or enabling software
24  purchased 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 (32) 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 (32):
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 into in to the qualifying data center. To
7  document the exemption allowed under this Section, the
8  retailer must obtain from the purchaser a copy of the
9  certificate of eligibility issued by the Department of
10  Commerce and Economic Opportunity.
11  This item (32) is exempt from the provisions of Section
12  3-55.
13  (33) Beginning July 1, 2022, breast pumps, breast pump
14  collection and storage supplies, and breast pump kits. This
15  item (33) is exempt from the provisions of Section 3-55. As
16  used in this item (33):
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  (34) Tangible personal property sold by or on behalf of
4  the State Treasurer pursuant to the Revised Uniform Unclaimed
5  Property Act. This item (34) is exempt from the provisions of
6  Section 3-55.
7  (35) Beginning on January 1, 2024, tangible personal
8  property purchased by an active duty member of the armed
9  forces of the United States who presents valid military
10  identification and purchases the property using a form of
11  payment where the federal government is the payor. The member
12  of the armed forces must complete, at the point of sale, a form
13  prescribed by the Department of Revenue documenting that the
14  transaction is eligible for the exemption under this
15  paragraph. Retailers must keep the form as documentation of
16  the exemption in their records for a period of not less than 6
17  years. "Armed forces of the United States" means the United
18  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
19  This paragraph is exempt from the provisions of Section 3-55.
20  (36) Beginning on January 1, 2026, as further defined in
21  Section 3-10, food prepared for immediate consumption and
22  transferred incident to a sale of service subject to this Act
23  or the Service Use Tax Act by an entity licensed under the
24  Hospital Licensing Act, the Nursing Home Care Act, the
25  Assisted Living and Shared Housing Act, the ID/DD Community
26  Care Act, the MC/DD Act, the Specialized Mental Health

 

 

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1  Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2  an entity that holds a permit issued pursuant to the Life Care
3  Facilities Act. This item (36) is exempt from the provisions
4  of Section 3-55.
5  (37) Beginning on January 1, 2026, as further defined in
6  Section 3-10, food for human consumption that is to be
7  consumed off the premises where it is sold (other than
8  alcoholic beverages, food consisting of or infused with adult
9  use cannabis, soft drinks, candy, and food that has been
10  prepared for immediate consumption). This item (37) is exempt
11  from the provisions of Section 3-55.
12  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
13  Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
14  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
15  Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
16  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
17  revised 12-12-23.)
18  (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
19  Sec. 3-10. Rate of tax. Unless otherwise provided in this
20  Section, the tax imposed by this Act is at the rate of 6.25% of
21  the "selling price", as defined in Section 2 of the Service Use
22  Tax Act, of the tangible personal property. For the purpose of
23  computing this tax, in no event shall the "selling price" be
24  less than the cost price to the serviceman of the tangible
25  personal property transferred. The selling price of each item

 

 

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1  of tangible personal property transferred as an incident of a
2  sale of service may be shown as a distinct and separate item on
3  the serviceman's billing to the service customer. If the
4  selling price is not so shown, the selling price of the
5  tangible personal property is deemed to be 50% of the
6  serviceman's entire billing to the service customer. When,
7  however, a serviceman contracts to design, develop, and
8  produce special order machinery or equipment, the tax imposed
9  by this Act shall be based on the serviceman's cost price of
10  the tangible personal property transferred incident to the
11  completion of the contract.
12  Beginning on July 1, 2000 and through December 31, 2000,
13  with respect to motor fuel, as defined in Section 1.1 of the
14  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15  the Use Tax Act, the tax is imposed at the rate of 1.25%.
16  With respect to gasohol, as defined in the Use Tax Act, the
17  tax imposed by this Act shall apply to (i) 70% of the cost
18  price of property transferred as an incident to the sale of
19  service on or after January 1, 1990, and before July 1, 2003,
20  (ii) 80% of the selling price of property transferred as an
21  incident to the sale of service on or after July 1, 2003 and on
22  or before July 1, 2017, (iii) 100% of the selling price of
23  property transferred as an incident to the sale of service
24  after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
25  the selling price of property transferred as an incident to
26  the sale of service on or after January 1, 2024 and on or

 

 

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1  before December 31, 2028, and (v) 100% of the selling price of
2  property transferred as an incident to the sale of service
3  after December 31, 2028. If, at any time, however, the tax
4  under this Act on sales of gasohol, as defined in the Use Tax
5  Act, is imposed at the rate of 1.25%, then the tax imposed by
6  this Act applies to 100% of the proceeds of sales of gasohol
7  made during that time.
8  With respect to mid-range ethanol blends, as defined in
9  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
10  applies to (i) 80% of the selling price of property
11  transferred as an incident to the sale of service on or after
12  January 1, 2024 and on or before December 31, 2028 and (ii)
13  100% of the selling price of property transferred as an
14  incident to the sale of service after December 31, 2028. If, at
15  any time, however, the tax under this Act on sales of mid-range
16  ethanol blends is imposed at the rate of 1.25%, then the tax
17  imposed by this Act applies to 100% of the selling price of
18  mid-range ethanol blends transferred as an incident to the
19  sale of service during that time.
20  With respect to majority blended ethanol fuel, as defined
21  in the Use Tax Act, the tax imposed by this Act does not apply
22  to the selling price of property transferred as an incident to
23  the sale of service on or after July 1, 2003 and on or before
24  December 31, 2028 but applies to 100% of the selling price
25  thereafter.
26  With respect to biodiesel blends, as defined in the Use

 

 

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1  Tax Act, with no less than 1% and no more than 10% biodiesel,
2  the tax imposed by this Act applies to (i) 80% of the selling
3  price of property transferred as an incident to the sale of
4  service on or after July 1, 2003 and on or before December 31,
5  2018 and (ii) 100% of the proceeds of the selling price after
6  December 31, 2018 and before January 1, 2024. On and after
7  January 1, 2024 and on or before December 31, 2030, the
8  taxation of biodiesel, renewable diesel, and biodiesel blends
9  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
10  at any time, however, the tax under this Act on sales of
11  biodiesel blends, as defined in the Use Tax Act, with no less
12  than 1% and no more than 10% biodiesel is imposed at the rate
13  of 1.25%, then the tax imposed by this Act applies to 100% of
14  the proceeds of sales of biodiesel blends with no less than 1%
15  and no more than 10% biodiesel made during that time.
16  With respect to biodiesel, as defined in the Use Tax Act,
17  and biodiesel blends, as defined in the Use Tax Act, with more
18  than 10% but no more than 99% biodiesel material, the tax
19  imposed by this Act does not apply to the proceeds of the
20  selling price of property transferred as an incident to the
21  sale of service on or after July 1, 2003 and on or before
22  December 31, 2023. On and after January 1, 2024 and on or
23  before December 31, 2030, the taxation of biodiesel, renewable
24  diesel, and biodiesel blends shall be as provided in Section
25  3-5.1 of the Use Tax Act.
26  At the election of any registered serviceman made for each

 

 

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1  fiscal year, sales of service in which the aggregate annual
2  cost price of tangible personal property transferred as an
3  incident to the sales of service is less than 35%, or 75% in
4  the case of servicemen transferring prescription drugs or
5  servicemen engaged in graphic arts production, of the
6  aggregate annual total gross receipts from all sales of
7  service, the tax imposed by this Act shall be based on the
8  serviceman's cost price of the tangible personal property
9  transferred incident to the sale of those services.
10  Until July 1, 2022 and from beginning again on July 1, 2023
11  through December 31, 2025, the tax shall be imposed at the rate
12  of 1% on food prepared for immediate consumption and
13  transferred incident to a sale of service subject to this Act
14  or the Service Use Tax Act by an entity licensed under the
15  Hospital Licensing Act, the Nursing Home Care Act, the
16  Assisted Living and Shared Housing Act, the ID/DD Community
17  Care Act, the MC/DD Act, the Specialized Mental Health
18  Rehabilitation Act of 2013, or the Child Care Act of 1969, or
19  an entity that holds a permit issued pursuant to the Life Care
20  Facilities Act. Until July 1, 2022 and from beginning again on
21  July 1, 2023 through December 31, 2025, the tax shall also be
22  imposed at the rate of 1% on food for human consumption that is
23  to be consumed off the premises where it is sold (other than
24  alcoholic beverages, food consisting of or infused with adult
25  use cannabis, soft drinks, and food that has been prepared for
26  immediate consumption and is not otherwise included in this

 

 

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1  paragraph).
2  Beginning on July 1, 2022 and until July 1, 2023, the tax
3  shall be imposed at the rate of 0% on food prepared for
4  immediate consumption and transferred incident to a sale of
5  service subject to this Act or the Service Use Tax Act by an
6  entity licensed under the Hospital Licensing Act, the Nursing
7  Home Care Act, the Assisted Living and Shared Housing Act, the
8  ID/DD Community Care Act, the MC/DD Act, the Specialized
9  Mental Health Rehabilitation Act of 2013, or the Child Care
10  Act of 1969, or an entity that holds a permit issued pursuant
11  to the Life Care Facilities Act. Beginning July 1, 2022 and
12  until July 1, 2023, the tax shall also be imposed at the rate
13  of 0% on food for human consumption that is to be consumed off
14  the premises where it is sold (other than alcoholic beverages,
15  food consisting of or infused with adult use cannabis, soft
16  drinks, and food that has been prepared for immediate
17  consumption and is not otherwise included in this paragraph).
18  On and after January 1, 2026, food prepared for immediate
19  consumption and transferred incident to a sale of service
20  subject to this Act or the Service Use Tax Act by an entity
21  licensed under the Hospital Licensing Act, the Nursing Home
22  Care Act, the Assisted Living and Shared Housing Act, the
23  ID/DD Community Care Act, the MC/DD Act, the Specialized
24  Mental Health Rehabilitation Act of 2013, or the Child Care
25  Act of 1969, or an entity that holds a permit issued pursuant
26  to the Life Care Facilities Act is exempt from the tax imposed

 

 

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1  by this Act. On and after January 1, 2026, food for human
2  consumption that is to be consumed off the premises where it is
3  sold (other than alcoholic beverages, food consisting of or
4  infused with adult use cannabis, soft drinks, candy, and food
5  that has been prepared for immediate consumption and is not
6  otherwise included in this paragraph) is exempt from the tax
7  imposed by this Act.
8  The tax shall also be imposed at the rate of 1% on
9  prescription and nonprescription medicines, drugs, medical
10  appliances, products classified as Class III medical devices
11  by the United States Food and Drug Administration that are
12  used for cancer treatment pursuant to a prescription, as well
13  as any accessories and components related to those devices,
14  modifications to a motor vehicle for the purpose of rendering
15  it usable by a person with a disability, and insulin, blood
16  sugar testing materials, syringes, and needles used by human
17  diabetics. For the purposes of this Section, until September
18  1, 2009: the term "soft drinks" means any complete, finished,
19  ready-to-use, non-alcoholic drink, whether carbonated or not,
20  including, but not limited to, soda water, cola, fruit juice,
21  vegetable juice, carbonated water, and all other preparations
22  commonly known as soft drinks of whatever kind or description
23  that are contained in any closed or sealed can, carton, or
24  container, regardless of size; but "soft drinks" does not
25  include coffee, tea, non-carbonated water, infant formula,
26  milk or milk products as defined in the Grade A Pasteurized

 

 

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1  Milk and Milk Products Act, or drinks containing 50% or more
2  natural fruit or vegetable juice.
3  Notwithstanding any other provisions of this Act,
4  beginning September 1, 2009, "soft drinks" means non-alcoholic
5  beverages that contain natural or artificial sweeteners. "Soft
6  drinks" does not include beverages that contain milk or milk
7  products, soy, rice or similar milk substitutes, or greater
8  than 50% of vegetable or fruit juice by volume.
9  Until August 1, 2009, and notwithstanding any other
10  provisions of this Act, "food for human consumption that is to
11  be consumed off the premises where it is sold" includes all
12  food sold through a vending machine, except soft drinks and
13  food products that are dispensed hot from a vending machine,
14  regardless of the location of the vending machine. Beginning
15  August 1, 2009, and notwithstanding any other provisions of
16  this Act, "food for human consumption that is to be consumed
17  off the premises where it is sold" includes all food sold
18  through a vending machine, except soft drinks, candy, and food
19  products that are dispensed hot from a vending machine,
20  regardless of the location of the vending machine.
21  Notwithstanding any other provisions of this Act,
22  beginning September 1, 2009, "food for human consumption that
23  is to be consumed off the premises where it is sold" does not
24  include candy. For purposes of this Section, "candy" means a
25  preparation of sugar, honey, or other natural or artificial
26  sweeteners in combination with chocolate, fruits, nuts or

 

 

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1  other ingredients or flavorings in the form of bars, drops, or
2  pieces. "Candy" does not include any preparation that contains
3  flour or requires refrigeration.
4  Notwithstanding any other provisions of this Act,
5  beginning September 1, 2009, "nonprescription medicines and
6  drugs" does not include grooming and hygiene products. For
7  purposes of this Section, "grooming and hygiene products"
8  includes, but is not limited to, soaps and cleaning solutions,
9  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10  lotions and screens, unless those products are available by
11  prescription only, regardless of whether the products meet the
12  definition of "over-the-counter-drugs". For the purposes of
13  this paragraph, "over-the-counter-drug" means a drug for human
14  use that contains a label that identifies the product as a drug
15  as required by 21 CFR 201.66. The "over-the-counter-drug"
16  label includes:
17  (A) a "Drug Facts" panel; or
18  (B) a statement of the "active ingredient(s)" with a
19  list of those ingredients contained in the compound,
20  substance or preparation.
21  Beginning on January 1, 2014 (the effective date of Public
22  Act 98-122), "prescription and nonprescription medicines and
23  drugs" includes medical cannabis purchased from a registered
24  dispensing organization under the Compassionate Use of Medical
25  Cannabis Program Act.
26  As used in this Section, "adult use cannabis" means

 

 

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1  cannabis subject to tax under the Cannabis Cultivation
2  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3  and does not include cannabis subject to tax under the
4  Compassionate Use of Medical Cannabis Program Act.
5  (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
6  102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
7  Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
8  103-154, eff. 6-30-23.)
9  Section 20. The Retailers' Occupation Tax Act is amended
10  by changing Sections 2-5, 2-10, and 2-27 as follows:
11  (35 ILCS 120/2-5)
12  Sec. 2-5. Exemptions. Gross receipts from proceeds from
13  the sale of the following tangible personal property are
14  exempt from the tax imposed by this Act:
15  (1) Farm chemicals.
16  (2) Farm machinery and equipment, both new and used,
17  including that manufactured on special order, certified by
18  the purchaser to be used primarily for production
19  agriculture or State or federal agricultural programs,
20  including individual replacement parts for the machinery
21  and equipment, including machinery and equipment purchased
22  for lease, and including implements of husbandry defined
23  in Section 1-130 of the Illinois Vehicle Code, farm
24  machinery and agricultural chemical and fertilizer

 

 

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

 

 

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1  diets and agricultural chemicals.
2  Beginning on January 1, 2024, farm machinery and
3  equipment also includes electrical power generation
4  equipment used primarily for production agriculture.
5  This item (2) is exempt from the provisions of Section
6  2-70.
7  (3) Until July 1, 2003, distillation machinery and
8  equipment, sold as a unit or kit, assembled or installed
9  by the retailer, certified by the user to be used only for
10  the production of ethyl alcohol that will be used for
11  consumption as motor fuel or as a component of motor fuel
12  for the personal use of the user, and not subject to sale
13  or resale.
14  (4) Until July 1, 2003 and beginning again September
15  1, 2004 through August 30, 2014, graphic arts machinery
16  and equipment, including repair and replacement parts,
17  both new and used, and including that manufactured on
18  special order or purchased for lease, certified by the
19  purchaser to be used primarily for graphic arts
20  production. Equipment includes chemicals or chemicals
21  acting as catalysts but only if the chemicals or chemicals
22  acting as catalysts effect a direct and immediate change
23  upon a graphic arts product. Beginning on July 1, 2017,
24  graphic arts machinery and equipment is included in the
25  manufacturing and assembling machinery and equipment
26  exemption under paragraph (14).

 

 

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1  (5) A motor vehicle that is used for automobile
2  renting, as defined in the Automobile Renting Occupation
3  and Use Tax Act. This paragraph is exempt from the
4  provisions of Section 2-70.
5  (6) Personal property sold by a teacher-sponsored
6  student organization affiliated with an elementary or
7  secondary school located in Illinois.
8  (7) Until July 1, 2003, proceeds of that portion of
9  the selling price of a passenger car the sale of which is
10  subject to the Replacement Vehicle Tax.
11  (8) Personal property sold to an Illinois county fair
12  association for use in conducting, operating, or promoting
13  the county fair.
14  (9) Personal property sold to a not-for-profit arts or
15  cultural organization that establishes, by proof required
16  by the Department by rule, that it has received an
17  exemption under Section 501(c)(3) of the Internal Revenue
18  Code and that is organized and operated primarily for the
19  presentation or support of arts or cultural programming,
20  activities, or services. These organizations include, but
21  are not limited to, music and dramatic arts organizations
22  such as symphony orchestras and theatrical groups, arts
23  and cultural service organizations, local arts councils,
24  visual arts organizations, and media arts organizations.
25  On and after July 1, 2001 (the effective date of Public Act
26  92-35), however, an entity otherwise eligible for this

 

 

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1  exemption shall not make tax-free purchases unless it has
2  an active identification number issued by the Department.
3  (10) Personal property sold by a corporation, society,
4  association, foundation, institution, or organization,
5  other than a limited liability company, that is organized
6  and operated as a not-for-profit service enterprise for
7  the benefit of persons 65 years of age or older if the
8  personal property was not purchased by the enterprise for
9  the purpose of resale by the enterprise.
10  (11) Except as otherwise provided in this Section,
11  personal property sold to a governmental body, to a
12  corporation, society, association, foundation, or
13  institution organized and operated exclusively for
14  charitable, religious, or educational purposes, or to a
15  not-for-profit corporation, society, association,
16  foundation, institution, or organization that has no
17  compensated officers or employees and that is organized
18  and operated primarily for the recreation of persons 55
19  years of age or older. A limited liability company may
20  qualify for the exemption under this paragraph only if the
21  limited liability company is organized and operated
22  exclusively for educational purposes. On and after July 1,
23  1987, however, no entity otherwise eligible for this
24  exemption shall make tax-free purchases unless it has an
25  active identification number issued by the Department.
26  (12) (Blank).

 

 

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

 

 

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

 

 

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1  limited to, graphic arts machinery and equipment, as
2  defined in paragraph (4) of this Section.
3  (15) Proceeds of mandatory service charges separately
4  stated on customers' bills for purchase and consumption of
5  food and beverages, to the extent that the proceeds of the
6  service charge are in fact turned over as tips or as a
7  substitute for tips to the employees who participate
8  directly in preparing, serving, hosting or cleaning up the
9  food or beverage function with respect to which the
10  service charge is imposed.
11  (16) Tangible personal property sold to a purchaser if
12  the purchaser is exempt from use tax by operation of
13  federal law. This paragraph is exempt from the provisions
14  of Section 2-70.
15  (17) Tangible personal property sold to a common
16  carrier by rail or motor that receives the physical
17  possession of the property in Illinois and that transports
18  the property, or shares with another common carrier in the
19  transportation of the property, out of Illinois on a
20  standard uniform bill of lading showing the seller of the
21  property as the shipper or consignor of the property to a
22  destination outside Illinois, for use outside Illinois.
23  (18) Legal tender, currency, medallions, or gold or
24  silver coinage issued by the State of Illinois, the
25  government of the United States of America, or the
26  government of any foreign country, and bullion.

 

 

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1  (19) Until July 1, 2003, oil field exploration,
2  drilling, and production equipment, including (i) rigs and
3  parts of rigs, rotary rigs, cable tool rigs, and workover
4  rigs, (ii) pipe and tubular goods, including casing and
5  drill strings, (iii) pumps and pump-jack units, (iv)
6  storage tanks and flow lines, (v) any individual
7  replacement part for oil field exploration, drilling, and
8  production equipment, and (vi) machinery and equipment
9  purchased for lease; but excluding motor vehicles required
10  to be registered under the Illinois Vehicle Code.
11  (20) Photoprocessing machinery and equipment,
12  including repair and replacement parts, both new and used,
13  including that manufactured on special order, certified by
14  the purchaser to be used primarily for photoprocessing,
15  and including photoprocessing machinery and equipment
16  purchased for lease.
17  (21) Until July 1, 2028, coal and aggregate
18  exploration, mining, off-highway hauling, processing,
19  maintenance, and reclamation equipment, including
20  replacement parts and equipment, and including equipment
21  purchased for lease, but excluding motor vehicles required
22  to be registered under the Illinois Vehicle Code. The
23  changes made to this Section by Public Act 97-767 apply on
24  and after July 1, 2003, but no claim for credit or refund
25  is allowed on or after August 16, 2013 (the effective date
26  of Public Act 98-456) for such taxes paid during the

 

 

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

 

 

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

 

 

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1  that would otherwise be imposed under this Act. At the
2  time of the sale, the purchaser shall execute a statement,
3  signed under penalty of perjury, of his or her intent to
4  title the vehicle in the state in which the purchaser is a
5  resident within 30 days after the sale and of the fact of
6  the payment to the State of Illinois of tax in an amount
7  equivalent to the state's rate of tax on taxable property
8  in his or her state of residence and shall submit the
9  statement to the appropriate tax collection agency in his
10  or her state of residence. In addition, the retailer must
11  retain a signed copy of the statement in his or her
12  records. Nothing in this item shall be construed to
13  require the removal of the vehicle from this state
14  following the filing of an intent to title the vehicle in
15  the purchaser's state of residence if the purchaser titles
16  the vehicle in his or her state of residence within 30 days
17  after the date of sale. The tax collected under this Act in
18  accordance with this item (25-5) shall be proportionately
19  distributed as if the tax were collected at the 6.25%
20  general rate imposed under this Act.
21  (25-7) Beginning on July 1, 2007, no tax is imposed
22  under this Act on the sale of an aircraft, as defined in
23  Section 3 of the Illinois Aeronautics Act, if all of the
24  following conditions are met:
25  (1) the aircraft leaves this State within 15 days
26  after the later of either the issuance of the final

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  and operated exclusively to provide a course of study of
2  not less than 6 weeks duration and designed to prepare
3  individuals to follow a trade or to pursue a manual,
4  technical, mechanical, industrial, business, or commercial
5  occupation.
6  (34) Beginning January 1, 2000, personal property,
7  including food, purchased through fundraising events for
8  the benefit of a public or private elementary or secondary
9  school, a group of those schools, or one or more school
10  districts if the events are sponsored by an entity
11  recognized by the school district that consists primarily
12  of volunteers and includes parents and teachers of the
13  school children. This paragraph does not apply to
14  fundraising events (i) for the benefit of private home
15  instruction or (ii) for which the fundraising entity
16  purchases the personal property sold at the events from
17  another individual or entity that sold the property for
18  the purpose of resale by the fundraising entity and that
19  profits from the sale to the fundraising entity. This
20  paragraph is exempt from the provisions of Section 2-70.
21  (35) Beginning January 1, 2000 and through December
22  31, 2001, new or used automatic vending machines that
23  prepare and serve hot food and beverages, including
24  coffee, soup, and other items, and replacement parts for
25  these machines. Beginning January 1, 2002 and through June
26  30, 2003, machines and parts for machines used in

 

 

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

 

 

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

 

 

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1  paragraph (38). The permit issued under this paragraph
2  (38) shall authorize the holder, to the extent and in the
3  manner specified in the rules adopted under this Act, to
4  purchase tangible personal property from a retailer exempt
5  from the taxes imposed by this Act. Taxpayers shall
6  maintain all necessary books and records to substantiate
7  the use and consumption of all such tangible personal
8  property outside of the State of Illinois.
9  (39) Beginning January 1, 2008, tangible personal
10  property used in the construction or maintenance of a
11  community water supply, as defined under Section 3.145 of
12  the Environmental Protection Act, that is operated by a
13  not-for-profit corporation that holds a valid water supply
14  permit issued under Title IV of the Environmental
15  Protection Act. This paragraph is exempt from the
16  provisions of Section 2-70.
17  (40) Beginning January 1, 2010 and continuing through
18  December 31, 2029, materials, parts, equipment,
19  components, and furnishings incorporated into or upon an
20  aircraft as part of the modification, refurbishment,
21  completion, replacement, repair, or maintenance of the
22  aircraft. This exemption includes consumable supplies used
23  in the modification, refurbishment, completion,
24  replacement, repair, and maintenance of aircraft. However,
25  until January 1, 2024, this exemption excludes any
26  materials, parts, equipment, components, and consumable

 

 

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1  supplies used in the modification, replacement, repair,
2  and maintenance of aircraft engines or power plants,
3  whether such engines or power plants are installed or
4  uninstalled upon any such aircraft. "Consumable supplies"
5  include, but are not limited to, adhesive, tape,
6  sandpaper, general purpose lubricants, cleaning solution,
7  latex gloves, and protective films.
8  Beginning January 1, 2010 and continuing through
9  December 31, 2023, this exemption applies only to the sale
10  of qualifying tangible personal property to persons who
11  modify, refurbish, complete, replace, or maintain an
12  aircraft and who (i) hold an Air Agency Certificate and
13  are empowered to operate an approved repair station by the
14  Federal Aviation Administration, (ii) have a Class IV
15  Rating, and (iii) conduct operations in accordance with
16  Part 145 of the Federal Aviation Regulations. The
17  exemption does not include aircraft operated by a
18  commercial air carrier providing scheduled passenger air
19  service pursuant to authority issued under Part 121 or
20  Part 129 of the Federal Aviation Regulations. From January
21  1, 2024 through December 31, 2029, this exemption applies
22  only to the use of qualifying tangible personal property
23  by: (A) persons who modify, refurbish, complete, repair,
24  replace, or maintain aircraft and who (i) hold an Air
25  Agency Certificate and are empowered to operate an
26  approved repair station by the Federal Aviation

 

 

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1  Administration, (ii) have a Class IV Rating, and (iii)
2  conduct operations in accordance with Part 145 of the
3  Federal Aviation Regulations; and (B) persons who engage
4  in the modification, replacement, repair, and maintenance
5  of aircraft engines or power plants without regard to
6  whether or not those persons meet the qualifications of
7  item (A).
8  The changes made to this paragraph (40) by Public Act
9  98-534 are declarative of existing law. It is the intent
10  of the General Assembly that the exemption under this
11  paragraph (40) applies continuously from January 1, 2010
12  through December 31, 2024; however, no claim for credit or
13  refund is allowed for taxes paid as a result of the
14  disallowance of this exemption on or after January 1, 2015
15  and prior to February 5, 2020 (the effective date of
16  Public Act 101-629).
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 rental purchase agreement, as
12  defined in the Rental-Purchase Rental Purchase Agreement
13  Act, and provide proof of registration under the Rental
14  Purchase Agreement Occupation and Use Tax Act. This
15  paragraph is exempt from 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  been in effect, may apply for and obtain an exemption for
26  subsequent purchases of computer equipment or enabling

 

 

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

 

 

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

 

 

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1  exemption shall maintain books and records demonstrating
2  that the use tax on such sales has been collected and
3  remitted by a marketplace facilitator. Marketplace sellers
4  that have properly remitted tax under this Act on such
5  sales may file a claim for credit as provided in Section 6
6  of this Act. No claim is allowed, however, for such taxes
7  for which a credit or refund has been issued to the
8  marketplace facilitator under the Use Tax Act, or for
9  which the marketplace facilitator has filed a claim for
10  credit or refund under the Use Tax Act.
11  (46) Beginning July 1, 2022, breast pumps, breast pump
12  collection and storage supplies, and breast pump kits.
13  This item (46) is exempt from the provisions of Section
14  2-70. As used in this item (46):
15  "Breast pump" means an electrically controlled or
16  manually controlled pump device designed or marketed to be
17  used to express milk from a human breast during lactation,
18  including the pump device and any battery, AC adapter, or
19  other power supply unit that is used to power the pump
20  device and is packaged and sold with the pump device at the
21  time of sale.
22  "Breast pump collection and storage supplies" means
23  items of tangible personal property designed or marketed
24  to be used in conjunction with a breast pump to collect
25  milk expressed from a human breast and to store collected
26  milk until it is ready for consumption.

 

 

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

 

 

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1  (47) Tangible personal property sold by or on behalf
2  of the State Treasurer pursuant to the Revised Uniform
3  Unclaimed Property Act. This item (47) is exempt from the
4  provisions of Section 2-70.
5  (48) Beginning on January 1, 2024, tangible personal
6  property purchased by an active duty member of the armed
7  forces of the United States who presents valid military
8  identification and purchases the property using a form of
9  payment where the federal government is the payor. The
10  member of the armed forces must complete, at the point of
11  sale, a form prescribed by the Department of Revenue
12  documenting that the transaction is eligible for the
13  exemption under this paragraph. Retailers must keep the
14  form as documentation of the exemption in their records
15  for a period of not less than 6 years. "Armed forces of the
16  United States" means the United States Army, Navy, Air
17  Force, Marine Corps, or Coast Guard. This paragraph is
18  exempt from the provisions of Section 2-70.
19  (49) Beginning on January 1, 2026, as further defined
20  in Section 2-10, food for human consumption that is to be
21  consumed off the premises where it is sold (other than
22  alcoholic beverages, food consisting of or infused with
23  adult use cannabis, soft drinks, candy, and food that has
24  been prepared for immediate consumption). This item (49)
25  is exempt from the provisions of Section 2-70.
26  (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;

 

 

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1  102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
2  Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3  5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
4  5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
5  6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
6  12-12-23.)
7  (35 ILCS 120/2-10)
8  Sec. 2-10. Rate of tax. Unless otherwise provided in this
9  Section, the tax imposed by this Act is at the rate of 6.25% of
10  gross receipts from sales of tangible personal property made
11  in the course of business.
12  Beginning on July 1, 2000 and through December 31, 2000,
13  with respect to motor fuel, as defined in Section 1.1 of the
14  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15  the Use Tax Act, the tax is imposed at the rate of 1.25%.
16  Beginning on August 6, 2010 through August 15, 2010, and
17  beginning again on August 5, 2022 through August 14, 2022,
18  with respect to sales tax holiday items as defined in Section
19  2-8 of this Act, the tax is imposed at the rate of 1.25%.
20  Within 14 days after July 1, 2000 (the effective date of
21  Public Act 91-872), each retailer of motor fuel and gasohol
22  shall cause the following notice to be posted in a prominently
23  visible place on each retail dispensing device that is used to
24  dispense motor fuel or gasohol in the State of Illinois: "As of
25  July 1, 2000, the State of Illinois has eliminated the State's

 

 

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1  share of sales tax on motor fuel and gasohol through December
2  31, 2000. The price on this pump should reflect the
3  elimination of the tax." The notice shall be printed in bold
4  print on a sign that is no smaller than 4 inches by 8 inches.
5  The sign shall be clearly visible to customers. Any retailer
6  who fails to post or maintain a required sign through December
7  31, 2000 is guilty of a petty offense for which the fine shall
8  be $500 per day per each retail premises where a violation
9  occurs.
10  With respect to gasohol, as defined in the Use Tax Act, the
11  tax imposed by this Act applies to (i) 70% of the proceeds of
12  sales made on or after January 1, 1990, and before July 1,
13  2003, (ii) 80% of the proceeds of sales made on or after July
14  1, 2003 and on or before July 1, 2017, (iii) 100% of the
15  proceeds of sales made after July 1, 2017 and prior to January
16  1, 2024, (iv) 90% of the proceeds of sales made on or after
17  January 1, 2024 and on or before December 31, 2028, and (v)
18  100% of the proceeds of sales made after December 31, 2028. If,
19  at any time, however, the tax under this Act on sales of
20  gasohol, as defined in the Use Tax Act, is imposed at the rate
21  of 1.25%, then the tax imposed by this Act applies to 100% of
22  the proceeds of sales of gasohol made during that time.
23  With respect to mid-range ethanol blends, as defined in
24  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
25  applies to (i) 80% of the proceeds of sales made on or after
26  January 1, 2024 and on or before December 31, 2028 and (ii)

 

 

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1  100% of the proceeds of sales made after December 31, 2028. If,
2  at any time, however, the tax under this Act on sales of
3  mid-range ethanol blends is imposed at the rate of 1.25%, then
4  the tax imposed by this Act applies to 100% of the proceeds of
5  sales of mid-range ethanol blends made during that time.
6  With respect to majority blended ethanol fuel, as defined
7  in the Use Tax Act, the tax imposed by this Act does not apply
8  to the proceeds of sales made on or after July 1, 2003 and on
9  or before December 31, 2028 but applies to 100% of the proceeds
10  of sales made thereafter.
11  With respect to biodiesel blends, as defined in the Use
12  Tax Act, with no less than 1% and no more than 10% biodiesel,
13  the tax imposed by this Act applies to (i) 80% of the proceeds
14  of sales made on or after July 1, 2003 and on or before
15  December 31, 2018 and (ii) 100% of the proceeds of sales made
16  after December 31, 2018 and before January 1, 2024. On and
17  after January 1, 2024 and on or before December 31, 2030, the
18  taxation of biodiesel, renewable diesel, and biodiesel blends
19  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
20  at any time, however, the tax under this Act on sales of
21  biodiesel blends, as defined in the Use Tax Act, with no less
22  than 1% and no more than 10% biodiesel is imposed at the rate
23  of 1.25%, then the tax imposed by this Act applies to 100% of
24  the proceeds of sales of biodiesel blends with no less than 1%
25  and no more than 10% biodiesel made during that time.
26  With respect to biodiesel, as defined in the Use Tax Act,

 

 

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1  and biodiesel blends, as defined in the Use Tax Act, with more
2  than 10% but no more than 99% biodiesel, the tax imposed by
3  this Act does not apply to the proceeds of sales made on or
4  after July 1, 2003 and on or before December 31, 2023. On and
5  after January 1, 2024 and on or before December 31, 2030, the
6  taxation of biodiesel, renewable diesel, and biodiesel blends
7  shall be as provided in Section 3-5.1 of the Use Tax Act.
8  Until July 1, 2022 and from beginning again on July 1, 2023
9  through December 31, 2025, with respect to food for human
10  consumption that is to be consumed off the premises where it is
11  sold (other than alcoholic beverages, food consisting of or
12  infused with adult use cannabis, soft drinks, and food that
13  has been prepared for immediate consumption), the tax is
14  imposed at the rate of 1%. Beginning July 1, 2022 and until
15  July 1, 2023, with respect to food for human consumption that
16  is to be consumed off the premises where it is sold (other than
17  alcoholic beverages, food consisting of or infused with adult
18  use cannabis, soft drinks, and food that has been prepared for
19  immediate consumption), the tax is imposed at the rate of 0%.
20  On and after January 1, 2026, food for human consumption that
21  is to be consumed off the premises where it is sold (other than
22  alcoholic beverages, food consisting of or infused with adult
23  use cannabis, soft drinks, candy, and food that has been
24  prepared for immediate consumption) is exempt from the tax
25  imposed by this Act.
26  With respect to prescription and nonprescription

 

 

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1  medicines, drugs, medical appliances, products classified as
2  Class III medical devices by the United States Food and Drug
3  Administration that are used for cancer treatment pursuant to
4  a prescription, as well as any accessories and components
5  related to those devices, modifications to a motor vehicle for
6  the purpose of rendering it usable by a person with a
7  disability, and insulin, blood sugar testing materials,
8  syringes, and needles used by human diabetics, the tax is
9  imposed at the rate of 1%. For the purposes of this Section,
10  until September 1, 2009: the term "soft drinks" means any
11  complete, finished, ready-to-use, non-alcoholic drink, whether
12  carbonated or not, including, but not limited to, soda water,
13  cola, fruit juice, vegetable juice, carbonated water, and all
14  other preparations commonly known as soft drinks of whatever
15  kind or description that are contained in any closed or sealed
16  bottle, can, carton, or container, regardless of size; but
17  "soft drinks" does not include coffee, tea, non-carbonated
18  water, infant formula, milk or milk products as defined in the
19  Grade A Pasteurized Milk and Milk Products Act, or drinks
20  containing 50% or more natural fruit or vegetable juice.
21  Notwithstanding any other provisions of this Act,
22  beginning September 1, 2009, "soft drinks" means non-alcoholic
23  beverages that contain natural or artificial sweeteners. "Soft
24  drinks" does not include beverages that contain milk or milk
25  products, soy, rice or similar milk substitutes, or greater
26  than 50% of vegetable or fruit juice by volume.

 

 

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1  Until August 1, 2009, and notwithstanding any other
2  provisions of this Act, "food for human consumption that is to
3  be consumed off the premises where it is sold" includes all
4  food sold through a vending machine, except soft drinks and
5  food products that are dispensed hot from a vending machine,
6  regardless of the location of the vending machine. Beginning
7  August 1, 2009, and notwithstanding any other provisions of
8  this Act, "food for human consumption that is to be consumed
9  off the premises where it is sold" includes all food sold
10  through a vending machine, except soft drinks, candy, and food
11  products that are dispensed hot from a vending machine,
12  regardless of the location of the vending machine.
13  Notwithstanding any other provisions of this Act,
14  beginning September 1, 2009, "food for human consumption that
15  is to be consumed off the premises where it is sold" does not
16  include candy. For purposes of this Section, "candy" means a
17  preparation of sugar, honey, or other natural or artificial
18  sweeteners in combination with chocolate, fruits, nuts or
19  other ingredients or flavorings in the form of bars, drops, or
20  pieces. "Candy" does not include any preparation that contains
21  flour or requires refrigeration.
22  Notwithstanding any other provisions of this Act,
23  beginning September 1, 2009, "nonprescription medicines and
24  drugs" does not include grooming and hygiene products. For
25  purposes of this Section, "grooming and hygiene products"
26  includes, but is not limited to, soaps and cleaning solutions,

 

 

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1  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2  lotions and screens, unless those products are available by
3  prescription only, regardless of whether the products meet the
4  definition of "over-the-counter-drugs". For the purposes of
5  this paragraph, "over-the-counter-drug" means a drug for human
6  use that contains a label that identifies the product as a drug
7  as required by 21 CFR 201.66. The "over-the-counter-drug"
8  label includes:
9  (A) a "Drug Facts" panel; or
10  (B) a statement of the "active ingredient(s)" with a
11  list of those ingredients contained in the compound,
12  substance or preparation.
13  Beginning on January 1, 2014 (the effective date of Public
14  Act 98-122), "prescription and nonprescription medicines and
15  drugs" includes medical cannabis purchased from a registered
16  dispensing organization under the Compassionate Use of Medical
17  Cannabis Program Act.
18  As used in this Section, "adult use cannabis" means
19  cannabis subject to tax under the Cannabis Cultivation
20  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21  and does not include cannabis subject to tax under the
22  Compassionate Use of Medical Cannabis Program Act.
23  (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
24  Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
25  60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
26  4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)

 

 

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1  (35 ILCS 120/2-27)
2  Sec. 2-27. Prepaid telephone calling arrangements.
3  "Prepaid telephone calling arrangements" mean the right to
4  exclusively purchase telephone or telecommunications services
5  that must be paid for in advance and enable the origination of
6  one or more intrastate, interstate, or international telephone
7  calls or other telecommunications using an access number, an
8  authorization code, or both, whether manually or
9  electronically dialed, for which payment to a retailer must be
10  made in advance, provided that, unless recharged, no further
11  service is provided once that prepaid amount of service has
12  been consumed, and provided further that, on and after January
13  1, 2025, the telephone or telecommunications services included
14  in such arrangement are obtained through the purchase of a
15  preloaded phone, calling card, or other item of tangible
16  personal property. Prepaid telephone calling arrangements
17  include the recharge of a prepaid calling arrangement if and
18  only if, on and after January 1, 2025, the additional
19  telephone or telecommunications services included in the
20  recharge are obtained through the purchase of a preloaded
21  phone, calling card, or other item of tangible personal
22  property. For purposes of this Section, "recharge" means the
23  purchase of additional prepaid telephone or telecommunications
24  services whether or not the purchaser acquires a different
25  access number or authorization code. For purposes of this

 

 

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1  Section, "telecommunications" means that term as defined in
2  Section 2 of the Telecommunications Excise Tax Act. "Prepaid
3  telephone calling arrangement" does not include an arrangement
4  whereby the service provider reflects the amount of the
5  purchase as a credit on an account for a customer under an
6  existing subscription plan, nor, on and after January 1, 2025,
7  does it include a recharge that is not obtained through the
8  purchase of a preloaded phone, calling card, or other item of
9  tangible personal property.
10  (Source: P.A. 91-870, eff. 6-22-00.)
11  Section 22. The Prepaid Wireless 9-1-1 Surcharge Act is
12  amended by changing Section 15 as follows:
13  (50 ILCS 753/15)
14  Sec. 15. Prepaid wireless 9-1-1 surcharge.
15  (a) Until September 30, 2015, there is hereby imposed on
16  consumers a prepaid wireless 9-1-1 surcharge of 1.5% per
17  retail transaction. Beginning October 1, 2015, the prepaid
18  wireless 9-1-1 surcharge shall be 3% per retail transaction.
19  Until December 31, 2023 and beginning July 1, 2024, the
20  surcharge authorized by this subsection (a) does not apply in
21  a home rule municipality having a population in excess of
22  500,000.
23  (a-5) On or after the effective date of this amendatory
24  Act of the 98th General Assembly and until December 31, 2023,

 

 

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1  and from July 1, 2024 to July 1, 2029, a home rule municipality
2  having a population in excess of 500,000 on the effective date
3  of this amendatory Act may impose a prepaid wireless 9-1-1
4  surcharge not to exceed 9% per retail transaction sourced to
5  that jurisdiction and collected and remitted in accordance
6  with the provisions of subsection (b-5) of this Section.
7  (b) The prepaid wireless 9-1-1 surcharge shall be
8  collected by the seller from the consumer with respect to each
9  retail transaction occurring in this State and shall be
10  remitted to the Department by the seller as provided in this
11  Act. The amount of the prepaid wireless 9-1-1 surcharge shall
12  be separately stated as a distinct item apart from the charge
13  for the prepaid wireless telecommunications service on an
14  invoice, receipt, or other similar document that is provided
15  to the consumer by the seller or shall be otherwise disclosed
16  to the consumer. If the seller does not separately state the
17  surcharge as a distinct item to the consumer as provided in
18  this Section, then the seller shall maintain books and records
19  as required by this Act which clearly identify the amount of
20  the 9-1-1 surcharge for retail transactions.
21  For purposes of this subsection (b), a retail transaction
22  occurs in this State if (i) the retail transaction is made in
23  person by a consumer at the seller's business location and the
24  business is located within the State; (ii) the seller is a
25  provider and sells prepaid wireless telecommunications service
26  to a consumer located in Illinois; (iii) the retail

 

 

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1  transaction is treated as occurring in this State for purposes
2  of the Retailers' Occupation Tax Act; or (iv) a seller that is
3  included within the definition of a "retailer maintaining a
4  place of business in this State" under Section 2 of the Use Tax
5  Act makes a sale of prepaid wireless telecommunications
6  service to a consumer located in Illinois. In the case of a
7  retail transaction which does not occur in person at a
8  seller's business location, if a consumer uses a credit card
9  to purchase prepaid wireless telecommunications service
10  on-line or over the telephone, and no product is shipped to the
11  consumer, the transaction occurs in this State if the billing
12  address for the consumer's credit card is in this State.
13  (b-5) The prepaid wireless 9-1-1 surcharge imposed under
14  subsection (a-5) of this Section shall be collected by the
15  seller from the consumer with respect to each retail
16  transaction occurring in the municipality imposing the
17  surcharge. The amount of the prepaid wireless 9-1-1 surcharge
18  shall be separately stated on an invoice, receipt, or other
19  similar document that is provided to the consumer by the
20  seller or shall be otherwise disclosed to the consumer. If the
21  seller does not separately state the surcharge as a distinct
22  item to the consumer as provided in this Section, then the
23  seller shall maintain books and records as required by this
24  Act which clearly identify the amount of the 9-1-1 surcharge
25  for retail transactions.
26  For purposes of this subsection (b-5), a retail

 

 

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1  transaction occurs in the municipality if (i) the retail
2  transaction is made in person by a consumer at the seller's
3  business location and the business is located within the
4  municipality; (ii) the seller is a provider and sells prepaid
5  wireless telecommunications service to a consumer located in
6  the municipality; (iii) the retail transaction is treated as
7  occurring in the municipality for purposes of the Retailers'
8  Occupation Tax Act; or (iv) a seller that is included within
9  the definition of a "retailer maintaining a place of business
10  in this State" under Section 2 of the Use Tax Act makes a sale
11  of prepaid wireless telecommunications service to a consumer
12  located in the municipality. In the case of a retail
13  transaction which does not occur in person at a seller's
14  business location, if a consumer uses a credit card to
15  purchase prepaid wireless telecommunications service on-line
16  or over the telephone, and no product is shipped to the
17  consumer, the transaction occurs in the municipality if the
18  billing address for the consumer's credit card is in the
19  municipality.
20  (c) The prepaid wireless 9-1-1 surcharge is imposed on the
21  consumer and not on any provider. The seller shall be liable to
22  remit all prepaid wireless 9-1-1 surcharges that the seller
23  collects from consumers as provided in Section 20, including
24  all such surcharges that the seller is deemed to collect where
25  the amount of the surcharge has not been separately stated on
26  an invoice, receipt, or other similar document provided to the

 

 

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1  consumer by the seller. The surcharge collected or deemed
2  collected by a seller shall constitute a debt owed by the
3  seller to this State, and any such surcharge actually
4  collected shall be held in trust for the benefit of the
5  Department.
6  For purposes of this subsection (c), the surcharge shall
7  not be imposed or collected from entities that have an active
8  tax exemption identification number issued by the Department
9  under Section 1g of the Retailers' Occupation Tax Act.
10  (d) The amount of the prepaid wireless 9-1-1 surcharge
11  that is collected by a seller from a consumer, if such amount
12  is separately stated on an invoice, receipt, or other similar
13  document provided to the consumer by the seller, shall not be
14  included in the base for measuring any tax, fee, surcharge, or
15  other charge that is imposed by this State, any political
16  subdivision of this State, or any intergovernmental agency.
17  (e) (Blank).
18  (e-5) Any changes in the rate of the surcharge imposed by a
19  municipality under the authority granted in subsection (a-5)
20  of this Section shall be effective on the first day of the
21  first calendar month to occur at least 60 days after the
22  enactment of the change. The Department shall provide not less
23  than 30 days' notice of the increase or reduction in the rate
24  of such surcharge on the Department's website.
25  (f) When prepaid wireless telecommunications service is
26  sold with one or more other products or services for a single,

 

 

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1  non-itemized price, then the percentage specified in
2  subsection (a) or (a-5) of this Section 15 shall be applied to
3  the entire non-itemized price unless the seller elects to
4  apply the percentage to (i) the dollar amount of the prepaid
5  wireless telecommunications service if that dollar amount is
6  disclosed to the consumer or (ii) the portion of the price that
7  is attributable to the prepaid wireless telecommunications
8  service if the retailer can identify that portion by
9  reasonable and verifiable standards from its books and records
10  that are kept in the regular course of business for other
11  purposes, including, but not limited to, books and records
12  that are kept for non-tax purposes. However, if a minimal
13  amount of prepaid wireless telecommunications service is sold
14  with a prepaid wireless device for a single, non-itemized
15  price, then the seller may elect not to apply the percentage
16  specified in subsection (a) or (a-5) of this Section 15 to such
17  transaction. For purposes of this subsection, an amount of
18  service denominated as 10 minutes or less or $5 or less is
19  considered minimal.
20  (g) The prepaid wireless 9-1-1 surcharge imposed under
21  subsections (a) and (a-5) of this Section is not imposed on the
22  provider or the consumer for wireless Lifeline service where
23  the consumer does not pay the provider for the service. Where
24  the consumer purchases from the provider optional minutes,
25  texts, or other services in addition to the federally funded
26  Lifeline benefit, a consumer must pay the prepaid wireless

 

 

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1  9-1-1 surcharge, and it must be collected by the seller
2  according to subsection (b-5).
3  (Source: P.A. 102-9, eff. 6-3-21; 103-564, eff. 11-17-23.)
4  Section 25. The Counties Code is amended by changing
5  Sections 5-1009, 5-1030, and 5-1134 and by adding Section
6  5-1006.9 as follows:
7  (55 ILCS 5/5-1006.9 new)
8  Sec. 5-1006.9. County Grocery Occupation Tax Law.
9  (a) The corporate authorities of any county may, by
10  ordinance or resolution that takes effect on or after January
11  1, 2026, impose a tax upon all persons engaged in the business
12  of selling groceries at retail in the county, but outside of
13  any municipality, on the gross receipts from those sales made
14  in the course of that business. If imposed, the tax shall be at
15  the rate of 1% of the gross receipts from these sales.
16  The tax imposed by a county under this subsection and all
17  civil penalties that may be assessed as an incident of the tax
18  shall be collected and enforced by the Department. The
19  certificate of registration that is issued by the Department
20  to a retailer under the Retailers' Occupation Tax Act shall
21  permit the retailer to engage in a business that is taxable
22  under any ordinance or resolution enacted under this
23  subsection without registering separately with the Department
24  under that ordinance or resolution or under this subsection.

 

 

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1  The Department shall have full power to administer and
2  enforce this subsection; to collect all taxes and penalties
3  due under this subsection; to dispose of taxes and penalties
4  so collected in the manner provided in this Section and under
5  rules adopted by the Department; and to determine all rights
6  to credit memoranda arising on account of the erroneous
7  payment of tax or penalty under this subsection.
8  In the administration of, and compliance with, this
9  subsection, the Department and persons who are subject to this
10  subsection shall have the same rights, remedies, privileges,
11  immunities, powers, and duties, and be subject to the same
12  conditions, restrictions, limitations, penalties and
13  definitions of terms, and employ the same modes of procedure,
14  as are prescribed in Sections 1, 2 through 2-65 (in respect to
15  all provisions therein other than the State rate of tax), 2c, 3
16  (except as to the disposition of taxes and penalties
17  collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
18  6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers'
19  Occupation Tax Act and all of the Uniform Penalty and Interest
20  Act, as fully as if those provisions were set forth in this
21  Section.
22  Persons subject to any tax imposed under the authority
23  granted in this subsection may reimburse themselves for their
24  seller's tax liability hereunder by separately stating that
25  tax as an additional charge, which charge may be stated in
26  combination, in a single amount, with State tax that sellers

 

 

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1  are required to collect under the Use Tax Act, pursuant to such
2  bracket schedules as the Department may prescribe.
3  (b) If a tax has been imposed under subsection (a), then a
4  service occupation tax must also be imposed at the same rate
5  upon all persons engaged, in the county but outside of a
6  municipality, in the business of making sales of service, who,
7  as an incident to making those sales of service, transfer
8  groceries, as defined in this Section, as an incident to a sale
9  of service.
10  The tax imposed under this subsection and all civil
11  penalties that may be assessed as an incident thereof shall be
12  collected and enforced by the Department. The certificate of
13  registration that is issued by the Department to a retailer
14  under the Retailers' Occupation Tax Act or the Service
15  Occupation Tax Act shall permit the registrant to engage in a
16  business that is taxable under any ordinance or resolution
17  enacted pursuant to this subsection without registering
18  separately with the Department under the ordinance or
19  resolution or under this subsection.
20  The Department shall have full power to administer and
21  enforce this subsection, to collect all taxes and penalties
22  due under this subsection, to dispose of taxes and penalties
23  so collected in the manner provided in this Section and under
24  rules adopted by the Department, and to determine all rights
25  to credit memoranda arising on account of the erroneous
26  payment of a tax or penalty under this subsection.

 

 

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1  In the administration of and compliance with this
2  subsection, the Department and persons who are subject to this
3  subsection shall have the same rights, remedies, privileges,
4  immunities, powers and duties, and be subject to the same
5  conditions, restrictions, limitations, penalties and
6  definitions of terms, and employ the same modes of procedure
7  as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
8  to all provisions contained in those Sections other than the
9  State rate of tax), 4, 5, 7, 8, 9 (except as to the disposition
10  of taxes and penalties collected), 10, 11, 12, 13, 15, 16, 17,
11  18, 19, and 20 of the Service Occupation Tax Act and all
12  provisions of the Uniform Penalty and Interest Act, as fully
13  as if those provisions were set forth in this Section.
14  Persons subject to any tax imposed under the authority
15  granted in this subsection may reimburse themselves for their
16  serviceman's tax liability by separately stating the tax as an
17  additional charge, which may be stated in combination, in a
18  single amount, with State tax that servicemen are authorized
19  to collect under the Service Use Tax Act, pursuant to any
20  bracketed schedules set forth by the Department.
21  (c) The Department shall immediately pay over to the State
22  Treasurer, ex officio, as trustee, all taxes and penalties
23  collected under this Section. Those taxes and penalties shall
24  be deposited into the County Grocery Tax Trust Fund, a trust
25  fund created in the State treasury. Except as otherwise
26  provided in this Section, moneys in the County Grocery Tax

 

 

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1  Trust Fund shall be used to make payments to counties and for
2  the payment of refunds under this Section.
3  Moneys deposited into the County Grocery Tax Trust Fund
4  under this Section are not subject to appropriation and shall
5  be used as provided in this Section. All deposits into the
6  County Grocery Tax Trust Fund shall be held in the County
7  Grocery Tax Trust Fund by the State Treasurer, ex officio, as
8  trustee separate and apart from all public moneys or funds of
9  this State.
10  Whenever the Department determines that a refund should be
11  made under this Section to a claimant instead of issuing a
12  credit memorandum, the Department shall notify the State
13  Comptroller, who shall cause the order to be drawn for the
14  amount specified and to the person named in the notification
15  from the Department. The refund shall be paid by the State
16  Treasurer out of the County Grocery Tax Trust Fund.
17  (d) As soon as possible after the first day of each month,
18  upon certification of the Department, the Comptroller shall
19  order transferred, and the Treasurer shall transfer, to the
20  STAR Bonds Revenue Fund the local sales tax increment, if any,
21  as defined in the Innovation Development and Economy Act,
22  collected under this Section.
23  After the monthly transfer to the STAR Bonds Revenue Fund,
24  if any, on or before the 25th day of each calendar month, the
25  Department shall prepare and certify to the Comptroller the
26  disbursement of stated sums of money to named counties, the

 

 

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1  counties to be those from which retailers have paid taxes or
2  penalties under this Section to the Department during the
3  second preceding calendar month. The amount to be paid to each
4  county shall be the amount (not including credit memoranda)
5  collected under this Section during the second preceding
6  calendar month by the Department plus an amount the Department
7  determines is necessary to offset any amounts that were
8  erroneously paid to a different taxing body, and not including
9  an amount equal to the amount of refunds made during the second
10  preceding calendar month by the Department on behalf of such
11  county, and not including any amount that the Department
12  determines is necessary to offset any amounts that were
13  payable to a different taxing body but were erroneously paid
14  to the county, and not including any amounts that are
15  transferred to the STAR Bonds Revenue Fund. Within 10 days
16  after receipt by the Comptroller of the disbursement
17  certification to the counties provided for in this Section to
18  be given to the Comptroller by the Department, the Comptroller
19  shall cause the orders to be drawn for the amounts in
20  accordance with the directions contained in the certification.
21  (e) Nothing in this Section shall be construed to
22  authorize a county to impose a tax upon the privilege of
23  engaging in any business which under the Constitution of the
24  United States may not be made the subject of taxation by this
25  State.
26  (f) Except as otherwise provided in this subsection, an

 

 

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1  ordinance or resolution imposing or discontinuing the tax
2  hereunder or effecting a change in the rate thereof shall
3  either (i) be adopted and a certified copy thereof filed with
4  the Department on or before the first day of April, whereupon
5  the Department shall proceed to administer and enforce this
6  Section as of the first day of July next following the adoption
7  and filing, or (ii) be adopted and a certified copy thereof
8  filed with the Department on or before the first day of
9  October, whereupon the Department shall proceed to administer
10  and enforce this Section as of the first day of January next
11  following the adoption and filing.
12  (g) When certifying the amount of a monthly disbursement
13  to a county under this Section, the Department shall increase
14  or decrease the amount by an amount necessary to offset any
15  misallocation of previous disbursements. The offset amount
16  shall be the amount erroneously disbursed within the previous
17  6 months from the time a misallocation is discovered.
18  (h) As used in this Section, "Department" means the
19  Department of Revenue.
20  For purposes of the tax authorized to be imposed under
21  subsection (a), "groceries" has the same meaning as "food for
22  human consumption that is to be consumed off the premises
23  where it is sold (other than alcoholic beverages, food
24  consisting of or infused with adult use cannabis, soft drinks,
25  candy, and food that has been prepared for immediate
26  consumption)", as further defined in Section 2-10 of the

 

 

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1  Retailers' Occupation Tax Act.
2  For purposes of the tax authorized to be imposed under
3  subsection (b), "groceries" has the same meaning as "food for
4  human consumption that is to be consumed off the premises
5  where it is sold (other than alcoholic beverages, food
6  consisting of or infused with adult use cannabis, soft drinks,
7  candy, and food that has been prepared for immediate
8  consumption)", as further defined in Section 3-10 of the
9  Service Occupation Tax Act.
10  For purposes of the tax authorized to be imposed under
11  subsection (b), "groceries" also means food prepared for
12  immediate consumption and transferred incident to a sale of
13  service subject to the Service Occupation Tax Act or the
14  Service Use Tax Act by an entity licensed under the Hospital
15  Licensing Act, the Nursing Home Care Act, the Assisted Living
16  and Shared Housing Act, the ID/DD Community Care Act, the
17  MC/DD Act, the Specialized Mental Health Rehabilitation Act of
18  2013, or the Child Care Act of 1969, or an entity that holds a
19  permit issued pursuant to the Life Care Facilities Act.
20  (i) This Section may be referred to as the County Grocery
21  Occupation Tax Law.
22  (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
23  Sec. 5-1009. Limitation on home rule powers. Except as
24  provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1006.9
25  5-1007, and 5-1008, on and after September 1, 1990, no home

 

 

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1  rule county has the authority to impose, pursuant to its home
2  rule authority, a retailers' occupation tax, service
3  occupation tax, use tax, sales tax or other tax on the use,
4  sale or purchase of tangible personal property based on the
5  gross receipts from such sales or the selling or purchase
6  price of said tangible personal property. Notwithstanding the
7  foregoing, this Section does not preempt any home rule imposed
8  tax such as the following: (1) a tax on alcoholic beverages,
9  whether based on gross receipts, volume sold or any other
10  measurement; (2) a tax based on the number of units of
11  cigarettes or tobacco products; (3) a tax, however measured,
12  based on the use of a hotel or motel room or similar facility;
13  (4) a tax, however measured, on the sale or transfer of real
14  property; (5) a tax, however measured, on lease receipts; (6)
15  a tax on food prepared for immediate consumption and on
16  alcoholic beverages sold by a business which provides for on
17  premise consumption of said food or alcoholic beverages; or
18  (7) other taxes not based on the selling or purchase price or
19  gross receipts from the use, sale or purchase of tangible
20  personal property. This Section does not preempt a home rule
21  county from imposing a tax, however measured, on the use, for
22  consideration, of a parking lot, garage, or other parking
23  facility.
24  On and after December 1, 2019, no home rule county has the
25  authority to impose, pursuant to its home rule authority, a
26  tax, however measured, on sales of aviation fuel, as defined

 

 

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1  in Section 3 of the Retailers' Occupation Tax Act, unless the
2  tax revenue is expended for airport-related purposes. For
3  purposes of this Section, "airport-related purposes" has the
4  meaning ascribed in Section 6z-20.2 of the State Finance Act.
5  Aviation fuel shall be excluded from tax only for so long as
6  the revenue use requirements of 49 U.S.C. 47017(b) and 49
7  U.S.C. 47133 are binding on the county.
8  This Section is a limitation, pursuant to subsection (g)
9  of Section 6 of Article VII of the Illinois Constitution, on
10  the power of home rule units to tax. The changes made to this
11  Section by Public Act 101-10 are a denial and limitation of
12  home rule powers and functions under subsection (g) of Section
13  6 of Article VII of the Illinois Constitution.
14  (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
15  102-558, eff. 8-20-21.)
16  (55 ILCS 5/5-1030) (from Ch. 34, par. 5-1030)
17  Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
18  (a) The corporate authorities of any county may by
19  ordinance impose a tax upon all persons engaged in such county
20  in the business of renting, leasing or letting rooms in a hotel
21  which is not located within a city, village, or incorporated
22  town that imposes a tax under Section 8-3-14 of the Illinois
23  Municipal Code, as defined in "The Hotel Operators' Occupation
24  Tax Act", at a rate not to exceed 5% of the gross rental
25  receipts from such renting, leasing or letting, excluding,

 

 

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1  however, from gross rental receipts, the proceeds of such
2  renting, leasing or letting to permanent residents of that
3  hotel, and may provide for the administration and enforcement
4  of the tax, and for the collection thereof from the persons
5  subject to the tax, as the corporate authorities determine to
6  be necessary or practicable for the effective administration
7  of the tax.
8  (b) With the consent of municipalities representing at
9  least 67% of the population of Winnebago County, as determined
10  by the 2010 federal decennial census and as expressed by
11  resolution of the corporate authorities of those
12  municipalities, the county board of Winnebago County may, by
13  ordinance, impose a tax upon all persons engaged in the county
14  in the business of renting, leasing, or letting rooms in a
15  hotel that imposes a tax under Section 8-3-14 of the Illinois
16  Municipal Code, as defined in the "The Hotel Operators'
17  Occupation Tax Act", at a rate not to exceed 2% of the gross
18  rental receipts from renting, leasing, or letting, excluding,
19  however, from gross rental receipts, the proceeds of the
20  renting, leasing, or letting to permanent residents of that
21  hotel, and may provide for the administration and enforcement
22  of the tax, and for the collection thereof from the persons
23  subject to the tax, as the county board determines to be
24  necessary or practicable for the effective administration of
25  the tax. The tax shall be instituted on a county-wide basis and
26  shall be in addition to any tax imposed by this or any other

 

 

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1  provision of law. The revenue generated under this subsection
2  shall be accounted for and segregated from all other funds of
3  the county and shall be utilized solely for either: (1)
4  encouraging, supporting, marketing, constructing, or
5  operating, either directly by the county or through other
6  taxing bodies within the county, sports, arts, or other
7  entertainment or tourism facilities or programs for the
8  purpose of promoting tourism, competitiveness, job growth, and
9  for the general health and well-being of the citizens of the
10  county; or (2) payment towards debt services on bonds issued
11  for the purposes set forth in this subsection.
12  (b-5) The county board of Sangamon County may, by
13  ordinance, impose a tax upon all persons engaged in the county
14  in the business of renting, leasing, or letting rooms in a
15  hotel that imposes a tax under Section 8-3-14 of the Illinois
16  Municipal Code, as defined in the Hotel Operators' Occupation
17  Tax Act, at a rate not to exceed 3% of the gross rental
18  receipts from renting, leasing, or letting, excluding,
19  however, from gross rental receipts, the proceeds of the
20  renting, leasing, or letting to permanent residents of that
21  hotel, and may provide for the administration and enforcement
22  of the tax, and for the collection thereof from the persons
23  subject to the tax, as the county board determines to be
24  necessary or practicable for the effective administration of
25  the tax. The tax shall be instituted on a county-wide basis and
26  shall be in addition to any tax imposed by this or any other

 

 

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1  provision of law. The revenue generated under this subsection
2  shall be accounted for and segregated from all other funds of
3  the county and shall be used solely for either: (1)
4  encouraging, supporting, marketing, constructing, or
5  operating, either directly by the county or through other
6  taxing bodies within the county, sports, arts, or other
7  entertainment or tourism facilities or programs for the
8  purpose of promoting tourism, competitiveness, job growth, and
9  for the general health and well-being of the citizens of the
10  county; or (2) payment towards debt services on bonds issued
11  for the purposes set forth in this subsection.
12  (c) A Tourism Facility Board shall be established,
13  comprised of a representative from the county and from each
14  municipality that has approved the imposition of the tax under
15  subsection (b) of this Section.
16  (1) A Board member's vote is weighted based on the
17  municipality's population relative to the population of
18  the county, with the county representing the population
19  within unincorporated areas of the county. Representatives
20  from the Rockford Park District and Rockford Area
21  Convention and Visitors Bureau shall serve as ex-officio
22  members with no voting rights.
23  (2) The Board must meet not less frequently than once
24  per year to direct the use of revenues collected from the
25  tax imposed under subsection (b) of this Section that are
26  not already directed for use pursuant to an

 

 

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1  intergovernmental agreement between the county and another
2  entity represented on the Board, including the ex-officio
3  members, and for any other reason the Board deems
4  necessary. Affirmative actions of the Board shall require
5  a weighted vote of Board members representing not less
6  than 67% of the population of the county.
7  (3) The Board shall not be a separate unit of local
8  government, shall have no paid staff, and members of the
9  Board shall receive no compensation or reimbursement of
10  expenses from proceeds of the tax imposed under subsection
11  (b) of this Section.
12  (d) Persons subject to any tax imposed pursuant to
13  authority granted by this Section may reimburse themselves for
14  their tax liability for such tax by separately stating such
15  tax as an additional charge, which charge may be stated in
16  combination, in a single amount, with State tax imposed under
17  "The Hotel Operators' Occupation Tax Act".
18  Nothing in this Section shall be construed to authorize a
19  county to impose a tax upon the privilege of engaging in any
20  business which under the Constitution of the United States may
21  not be made the subject of taxation by this State.
22  An ordinance or resolution imposing a tax hereunder or
23  effecting a change in the rate thereof shall be effective on
24  the first day of the calendar month next following its passage
25  and required publication.
26  The amounts collected by any county pursuant to this

 

 

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1  Section shall be expended to promote tourism; conventions;
2  expositions; theatrical, sports and cultural activities within
3  that county or otherwise to attract nonresident overnight
4  visitors to the county.
5  Any county may agree with any unit of local government,
6  including any authority defined as a metropolitan exposition,
7  auditorium and office building authority, fair and exposition
8  authority, exposition and auditorium authority, or civic
9  center authority created pursuant to provisions of Illinois
10  law and the territory of which unit of local government or
11  authority is co-extensive with or wholly within such county,
12  to impose and collect for a period not to exceed 40 years, any
13  portion or all of the tax authorized pursuant to this Section
14  and to transmit such tax so collected to such unit of local
15  government or authority. The amount so paid shall be expended
16  by any such unit of local government or authority for the
17  purposes for which such tax is authorized. Any such agreement
18  must be authorized by resolution or ordinance, as the case may
19  be, of such county and unit of local government or authority,
20  and such agreement may provide for the irrevocable imposition
21  and collection of said tax at such rate, or amount as limited
22  by a given rate, as may be agreed upon for the full period of
23  time set forth in such agreement; and such agreement may
24  further provide for any other terms as deemed necessary or
25  advisable by such county and such unit of local government or
26  authority. Any such agreement shall be binding and enforceable

 

 

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1  by either party to such agreement. Such agreement entered into
2  pursuant to this Section shall not in any event constitute an
3  indebtedness of such county subject to any limitation imposed
4  by statute or otherwise.
5  (Source: P.A. 98-313, eff. 8-12-13.)
6  (55 ILCS 5/5-1134)
7  Sec. 5-1134. Project labor agreements.
8  (a) Any sports, arts, or entertainment facilities that
9  receive revenue from a tax imposed under subsection (b) or
10  (b-5) of Section 5-1030 of this Code shall be considered to be
11  public works within the meaning of the Prevailing Wage Act.
12  The county authorities responsible for the construction,
13  renovation, modification, or alteration of the sports, arts,
14  or entertainment facilities shall enter into project labor
15  agreements with labor organizations as defined in the National
16  Labor Relations Act to assure that no labor dispute interrupts
17  or interferes with the construction, renovation, modification,
18  or alteration of the projects.
19  (b) The project labor agreements must include the
20  following:
21  (1) provisions establishing the minimum hourly wage
22  for each class of labor organization employees;
23  (2) provisions establishing the benefits and other
24  compensation for such class of labor organization; and
25  (3) provisions establishing that no strike or disputes

 

 

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1  will be engaged in by the labor organization employees.
2  The county, taxing bodies, municipalities, and the labor
3  organizations shall have the authority to include other terms
4  and conditions as they deem necessary.
5  (c) The project labor agreement shall be filed with the
6  Director of the Illinois Department of Labor in accordance
7  with procedures established by the Department. At a minimum,
8  the project labor agreement must provide the names, addresses,
9  and occupations of the owner of the facilities and the
10  individuals representing the labor organization employees
11  participating in the project labor agreement. The agreement
12  must also specify the terms and conditions required in
13  subsection (b) of this Section.
14  (d) In any agreement for the construction or
15  rehabilitation of a facility using revenue generated under
16  subsection (b) or (b-5) of Section 5-1030 of this Code, in
17  connection with the prequalification of general contractors
18  for construction or rehabilitation of the facility, it shall
19  be required that a commitment will be submitted detailing how
20  the general contractor will expend 15% or more of the
21  aggregate dollar value of the project as a whole with one or
22  more minority-owned businesses, women-owned businesses, or
23  businesses owned by a person with a disability, as these terms
24  are defined in Section 2 of the Business Enterprise for
25  Minorities, Women, and Persons with Disabilities Act.
26  (Source: P.A. 100-391, eff. 8-25-17.)

 

 

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1  Section 30. The Illinois Municipal Code is amended by
2  changing Sections 8-11-1.1 and 8-11-6a and adding Section
3  8-11-24 as follows:
4  (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
5  Sec. 8-11-1.1. Non-home rule municipalities; imposition of
6  taxes.
7  (a) The corporate authorities of a non-home rule
8  municipality may, upon approval of the electors of the
9  municipality pursuant to subsection (b) of this Section,
10  impose by ordinance or resolution the taxes tax authorized in
11  Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
12  (b) (Blank). The corporate authorities of the municipality
13  may by ordinance or resolution call for the submission to the
14  electors of the municipality the question of whether the
15  municipality shall impose such tax. Such question shall be
16  certified by the municipal clerk to the election authority in
17  accordance with Section 28-5 of the Election Code and shall be
18  in a form in accordance with Section 16-7 of the Election Code.
19  Notwithstanding any provision of law to the contrary, if
20  the proceeds of the tax may be used for municipal operations
21  pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
22  election authority must submit the question in substantially
23  the following form:
24  Shall the corporate authorities of the municipality be

 

 

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1  authorized to levy a tax at a rate of (rate)% for
2  expenditures on municipal operations, expenditures on
3  public infrastructure, or property tax relief?
4  If a majority of the electors in the municipality voting
5  upon the question vote in the affirmative, such tax shall be
6  imposed.
7  (c) Until January 1, 1992, an ordinance or resolution
8  imposing the tax of not more than 1% hereunder or
9  discontinuing the same shall be adopted and a certified copy
10  thereof, together with a certification that the ordinance or
11  resolution received referendum approval in the case of the
12  imposition of such tax, filed with the Department of Revenue,
13  on or before the first day of June, whereupon the Department
14  shall proceed to administer and enforce the additional tax or
15  to discontinue the tax, as the case may be, as of the first day
16  of September next following such adoption and filing.
17  Beginning January 1, 1992 and through December 31, 1992,
18  an ordinance or resolution imposing or discontinuing the tax
19  hereunder shall be adopted and a certified copy thereof filed
20  with the Department on or before the first day of July,
21  whereupon the Department shall proceed to administer and
22  enforce this Section as of the first day of October next
23  following such adoption and filing.
24  Beginning January 1, 1993, and through September 30, 2002,
25  an ordinance or resolution imposing or discontinuing the tax
26  hereunder shall be adopted and a certified copy thereof filed

 

 

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1  with the Department on or before the first day of October,
2  whereupon the Department shall proceed to administer and
3  enforce this Section as of the first day of January next
4  following such adoption and filing.
5  Beginning October 1, 2002, and through December 31, 2013,
6  an ordinance or resolution imposing or discontinuing the tax
7  under this Section or effecting a change in the rate of tax
8  must either (i) be adopted and a certified copy of the
9  ordinance or resolution filed with the Department on or before
10  the first day of April, whereupon the Department shall proceed
11  to administer and enforce this Section as of the first day of
12  July next following the adoption and filing; or (ii) be
13  adopted and a certified copy of the ordinance or resolution
14  filed with the Department on or before the first day of
15  October, whereupon the Department shall proceed to administer
16  and enforce this Section as of the first day of January next
17  following the adoption and filing.
18  Beginning January 1, 2014, if an ordinance or resolution
19  imposing the tax under this Section, discontinuing the tax
20  under this Section, or effecting a change in the rate of tax
21  under this Section is adopted, a certified copy thereof,
22  together with a certification that the ordinance or resolution
23  received referendum approval in the case of the imposition of
24  or increase in the rate of such tax, shall be filed with the
25  Department of Revenue, either (i) on or before the first day of
26  May, whereupon the Department shall proceed to administer and

 

 

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1  enforce this Section as of the first day of July next following
2  the adoption and filing; or (ii) on or before the first day of
3  October, whereupon the Department shall proceed to administer
4  and enforce this Section as of the first day of January next
5  following the adoption and filing.
6  Notwithstanding any provision in this Section to the
7  contrary, if, in a non-home rule municipality with more than
8  150,000 but fewer than 200,000 inhabitants, as determined by
9  the last preceding federal decennial census, an ordinance or
10  resolution under this Section imposes or discontinues a tax or
11  changes the tax rate as of July 1, 2007, then that ordinance or
12  resolution, together with a certification that the ordinance
13  or resolution received referendum approval in the case of the
14  imposition of the tax, must be adopted and a certified copy of
15  that ordinance or resolution must be filed with the Department
16  on or before May 15, 2007, whereupon the Department shall
17  proceed to administer and enforce this Section as of July 1,
18  2007.
19  Notwithstanding any provision in this Section to the
20  contrary, if, in a non-home rule municipality with more than
21  6,500 but fewer than 7,000 inhabitants, as determined by the
22  last preceding federal decennial census, an ordinance or
23  resolution under this Section imposes or discontinues a tax or
24  changes the tax rate on or before May 20, 2009, then that
25  ordinance or resolution, together with a certification that
26  the ordinance or resolution received referendum approval in

 

 

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1  the case of the imposition of the tax, must be adopted and a
2  certified copy of that ordinance or resolution must be filed
3  with the Department on or before May 20, 2009, whereupon the
4  Department shall proceed to administer and enforce this
5  Section as of July 1, 2009.
6  A non-home rule municipality may file a certified copy of
7  an ordinance or resolution, with a certification that the
8  ordinance or resolution received referendum approval in the
9  case of the imposition of the tax, with the Department of
10  Revenue, as required under this Section, only after October 2,
11  2000.
12  The tax authorized by this Section may not be more than 1%
13  and may be imposed only in 1/4% increments.
14  (Source: P.A. 98-584, eff. 8-27-13.)
15  (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
16  Sec. 8-11-6a. Home rule municipalities; preemption of
17  certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
18  8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on
19  and after September 1, 1990, no home rule municipality has the
20  authority to impose, pursuant to its home rule authority, a
21  retailer's occupation tax, service occupation tax, use tax,
22  sales tax or other tax on the use, sale or purchase of tangible
23  personal property based on the gross receipts from such sales
24  or the selling or purchase price of said tangible personal
25  property. Notwithstanding the foregoing, this Section does not

 

 

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1  preempt any home rule imposed tax such as the following: (1) a
2  tax on alcoholic beverages, whether based on gross receipts,
3  volume sold or any other measurement; (2) a tax based on the
4  number of units of cigarettes or tobacco products (provided,
5  however, that a home rule municipality that has not imposed a
6  tax based on the number of units of cigarettes or tobacco
7  products before July 1, 1993, shall not impose such a tax after
8  that date); (3) a tax, however measured, based on the use of a
9  hotel or motel room or similar facility; (4) a tax, however
10  measured, on the sale or transfer of real property; (5) a tax,
11  however measured, on lease receipts; (6) a tax on food
12  prepared for immediate consumption and on alcoholic beverages
13  sold by a business which provides for on premise consumption
14  of said food or alcoholic beverages; or (7) other taxes not
15  based on the selling or purchase price or gross receipts from
16  the use, sale or purchase of tangible personal property. This
17  Section does not preempt a home rule municipality with a
18  population of more than 2,000,000 from imposing a tax, however
19  measured, on the use, for consideration, of a parking lot,
20  garage, or other parking facility. This Section is not
21  intended to affect any existing tax on food and beverages
22  prepared for immediate consumption on the premises where the
23  sale occurs, or any existing tax on alcoholic beverages, or
24  any existing tax imposed on the charge for renting a hotel or
25  motel room, which was in effect January 15, 1988, or any
26  extension of the effective date of such an existing tax by

 

 

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1  ordinance of the municipality imposing the tax, which
2  extension is hereby authorized, in any non-home rule
3  municipality in which the imposition of such a tax has been
4  upheld by judicial determination, nor is this Section intended
5  to preempt the authority granted by Public Act 85-1006. On and
6  after December 1, 2019, no home rule municipality has the
7  authority to impose, pursuant to its home rule authority, a
8  tax, however measured, on sales of aviation fuel, as defined
9  in Section 3 of the Retailers' Occupation Tax Act, unless the
10  tax is not subject to the revenue use requirements of 49 U.S.C.
11  47107(b) and 49 U.S.C. 47133, or unless the tax revenue is
12  expended for airport-related purposes. For purposes of this
13  Section, "airport-related purposes" has the meaning ascribed
14  in Section 6z-20.2 of the State Finance Act. Aviation fuel
15  shall be excluded from tax only if, and for so long as, the
16  revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
17  47133 are binding on the municipality. This Section is a
18  limitation, pursuant to subsection (g) of Section 6 of Article
19  VII of the Illinois Constitution, on the power of home rule
20  units to tax. The changes made to this Section by Public Act
21  101-10 are a denial and limitation of home rule powers and
22  functions under subsection (g) of Section 6 of Article VII of
23  the Illinois Constitution.
24  (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
25  101-593, eff. 12-4-19.)

 

 

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1  (65 ILCS 5/8-11-24 new)
2  Sec. 8-11-24. Municipal Grocery Occupation Tax Law.
3  (a) The corporate authorities of any municipality may, by
4  ordinance or resolution that takes effect on or after January
5  1, 2026, impose a tax upon all persons engaged in the business
6  of selling groceries at retail in the municipality on the
7  gross receipts from those sales made in the course of that
8  business. If imposed, the tax shall be at the rate of 1% of the
9  gross receipts from these sales.
10  The tax imposed by a municipality under this subsection
11  and all civil penalties that may be assessed as an incident of
12  the tax shall be collected and enforced by the Department. The
13  certificate of registration that is issued by the Department
14  to a retailer under the Retailers' Occupation Tax Act shall
15  permit the retailer to engage in a business that is taxable
16  under any ordinance or resolution enacted under this
17  subsection without registering separately with the Department
18  under that ordinance or resolution or under this subsection.
19  The Department shall have full power to administer and
20  enforce this subsection; to collect all taxes and penalties
21  due under this subsection; to dispose of taxes and penalties
22  so collected in the manner provided in this Section and under
23  rules adopted by the Department; and to determine all rights
24  to credit memoranda arising on account of the erroneous
25  payment of tax or penalty under this subsection.
26  In the administration of, and compliance with, this

 

 

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1  subsection, the Department and persons who are subject to this
2  subsection shall have the same rights, remedies, privileges,
3  immunities, powers, and duties, and be subject to the same
4  conditions, restrictions, limitations, penalties and
5  definitions of terms, and employ the same modes of procedure,
6  as are prescribed in Sections 1, 2 through 2-65 (in respect to
7  all provisions therein other than the State rate of tax), 2c, 3
8  (except as to the disposition of taxes and penalties
9  collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
10  6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers'
11  Occupation Tax Act and all of the Uniform Penalty and Interest
12  Act, as fully as if those provisions were set forth in this
13  Section.
14  Persons subject to any tax imposed under the authority
15  granted in this subsection may reimburse themselves for their
16  seller's tax liability hereunder by separately stating that
17  tax as an additional charge, which charge may be stated in
18  combination, in a single amount, with State tax which sellers
19  are required to collect under the Use Tax Act, pursuant to such
20  bracket schedules as the Department may prescribe.
21  (b) If a tax has been imposed under subsection (a), then a
22  service occupation tax must also be imposed at the same rate
23  upon all persons engaged, in the municipality, in the business
24  of making sales of service, who, as an incident to making those
25  sales of service, transfer groceries, as defined in this
26  Section, as an incident to a sale of service.

 

 

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1  The tax imposed under this subsection and all civil
2  penalties that may be assessed as an incident thereof shall be
3  collected and enforced by the Department. The certificate of
4  registration that is issued by the Department to a retailer
5  under the Retailers' Occupation Tax Act or the Service
6  Occupation Tax Act shall permit the registrant to engage in a
7  business that is taxable under any ordinance or resolution
8  enacted pursuant to this subsection without registering
9  separately with the Department under the ordinance or
10  resolution or under this subsection.
11  The Department shall have full power to administer and
12  enforce this subsection, to collect all taxes and penalties
13  due under this subsection, to dispose of taxes and penalties
14  so collected in the manner provided in this Section and under
15  rules adopted by the Department, and to determine all rights
16  to credit memoranda arising on account of the erroneous
17  payment of a tax or penalty under this subsection.
18  In the administration of and compliance with this
19  subsection, the Department and persons who are subject to this
20  subsection shall have the same rights, remedies, privileges,
21  immunities, powers and duties, and be subject to the same
22  conditions, restrictions, limitations, penalties and
23  definitions of terms, and employ the same modes of procedure
24  as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
25  to all provisions contained in those Sections other than the
26  State rate of tax), 4, 5, 7, 8, 9 (except as to the disposition

 

 

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1  of taxes and penalties collected), 10, 11, 12, 13, 15, 16, 17,
2  18, 19, and 20 of the Service Occupation Tax Act and all
3  provisions of the Uniform Penalty and Interest Act, as fully
4  as if those provisions were set forth in this Section.
5  Persons subject to any tax imposed under the authority
6  granted in this subsection may reimburse themselves for their
7  serviceman's tax liability by separately stating the tax as an
8  additional charge, which may be stated in combination, in a
9  single amount, with State tax that servicemen are authorized
10  to collect under the Service Use Tax Act, pursuant to any
11  bracketed schedules set forth by the Department.
12  (c) The Department shall immediately pay over to the State
13  Treasurer, ex officio, as trustee, all taxes and penalties
14  collected under this Section. Those taxes and penalties shall
15  be deposited into the Municipal Grocery Tax Trust Fund, a
16  trust fund created in the State treasury. Except as otherwise
17  provided in this Section, moneys in the Municipal Grocery Tax
18  Trust Fund shall be used to make payments to municipalities
19  and for the payment of refunds under this Section.
20  Moneys deposited into the Municipal Grocery Tax Trust Fund
21  under this Section are not subject to appropriation and shall
22  be used as provided in this Section. All deposits into the
23  Municipal Grocery Tax Trust Fund shall be held in the
24  Municipal Grocery Tax Trust Fund by the State Treasurer, ex
25  officio, as trustee separate and apart from all public moneys
26  or funds of this State.

 

 

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1  Whenever the Department determines that a refund should be
2  made under this Section to a claimant instead of issuing a
3  credit memorandum, the Department shall notify the State
4  Comptroller, who shall cause the order to be drawn for the
5  amount specified and to the person named in the notification
6  from the Department. The refund shall be paid by the State
7  Treasurer out of the Municipal Grocery Tax Trust Fund.
8  (d) As soon as possible after the first day of each month,
9  upon certification of the Department, the Comptroller shall
10  order transferred, and the Treasurer shall transfer, to the
11  STAR Bonds Revenue Fund the local sales tax increment, if any,
12  as defined in the Innovation Development and Economy Act,
13  collected under this Section.
14  After the monthly transfer to the STAR Bonds Revenue Fund,
15  if any, on or before the 25th day of each calendar month, the
16  Department shall prepare and certify to the Comptroller the
17  disbursement of stated sums of money to named municipalities,
18  the municipalities to be those from which retailers have paid
19  taxes or penalties under this Section to the Department during
20  the second preceding calendar month. The amount to be paid to
21  each municipality shall be the amount (not including credit
22  memoranda) collected under this Section during the second
23  preceding calendar month by the Department plus an amount the
24  Department determines is necessary to offset any amounts that
25  were erroneously paid to a different taxing body, and not
26  including an amount equal to the amount of refunds made during

 

 

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1  the second preceding calendar month by the Department on
2  behalf of such municipality, and not including any amount that
3  the Department determines is necessary to offset any amounts
4  that were payable to a different taxing body but were
5  erroneously paid to the municipality, and not including any
6  amounts that are transferred to the STAR Bonds Revenue Fund.
7  Within 10 days after receipt by the Comptroller of the
8  disbursement certification to the municipalities provided for
9  in this Section to be given to the Comptroller by the
10  Department, the Comptroller shall cause the orders to be drawn
11  for the amounts in accordance with the directions contained in
12  the certification.
13  (e) Nothing in this Section shall be construed to
14  authorize a municipality to impose a tax upon the privilege of
15  engaging in any business which under the Constitution of the
16  United States may not be made the subject of taxation by this
17  State.
18  (f) Except as otherwise provided in this subsection, an
19  ordinance or resolution imposing or discontinuing the tax
20  hereunder or effecting a change in the rate thereof shall
21  either (i) be adopted and a certified copy thereof filed with
22  the Department on or before the first day of April, whereupon
23  the Department shall proceed to administer and enforce this
24  Section as of the first day of July next following the adoption
25  and filing or (ii) be adopted and a certified copy thereof
26  filed with the Department on or before the first day of

 

 

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1  October, whereupon the Department shall proceed to administer
2  and enforce this Section as of the first day of January next
3  following the adoption and filing.
4  (g) When certifying the amount of a monthly disbursement
5  to a municipality under this Section, the Department shall
6  increase or decrease the amount by an amount necessary to
7  offset any misallocation of previous disbursements. The offset
8  amount shall be the amount erroneously disbursed within the
9  previous 6 months from the time a misallocation is discovered.
10  (h) As used in this Section, "Department" means the
11  Department of Revenue.
12  For purposes of the tax authorized to be imposed under
13  subsection (a), "groceries" has the same meaning as "food for
14  human consumption that is to be consumed off the premises
15  where it is sold (other than alcoholic beverages, food
16  consisting of or infused with adult use cannabis, soft drinks,
17  candy, and food that has been prepared for immediate
18  consumption)", as further defined in Section 2-10 of the
19  Retailers' Occupation Tax Act.
20  For purposes of the tax authorized to be imposed under
21  subsection (b), "groceries" has the same meaning as "food for
22  human consumption that is to be consumed off the premises
23  where it is sold (other than alcoholic beverages, food
24  consisting of or infused with adult use cannabis, soft drinks,
25  candy, and food that has been prepared for immediate
26  consumption)", as further defined in Section 3-10 of the

 

 

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1  Service Occupation Tax Act. For purposes of the tax authorized
2  to be imposed under subsection (b), "groceries" also means
3  food prepared for immediate consumption and transferred
4  incident to a sale of service subject to the Service
5  Occupation Tax Act or the Service Use Tax Act by an entity
6  licensed under the Hospital Licensing Act, the Nursing Home
7  Care Act, the Assisted Living and Shared Housing Act, the
8  ID/DD Community Care Act, the MC/DD Act, the Specialized
9  Mental Health Rehabilitation Act of 2013, or the Child Care
10  Act of 1969, or an entity that holds a permit issued pursuant
11  to the Life Care Facilities Act.
12  (i) This Section may be referred to as the Municipal
13  Grocery Occupation Tax Law.
14  Section 35. The Regional Transportation Authority Act is
15  amended by changing Section 4.03 as follows:
16  (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
17  Sec. 4.03. Taxes.
18  (a) In order to carry out any of the powers or purposes of
19  the Authority, the Board may by ordinance adopted with the
20  concurrence of 12 of the then Directors, impose throughout the
21  metropolitan region any or all of the taxes provided in this
22  Section. Except as otherwise provided in this Act, taxes
23  imposed under this Section and civil penalties imposed
24  incident thereto shall be collected and enforced by the State

 

 

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1  Department of Revenue. The Department shall have the power to
2  administer and enforce the taxes and to determine all rights
3  for refunds for erroneous payments of the taxes. Nothing in
4  Public Act 95-708 is intended to invalidate any taxes
5  currently imposed by the Authority. The increased vote
6  requirements to impose a tax shall only apply to actions taken
7  after January 1, 2008 (the effective date of Public Act
8  95-708).
9  (b) The Board may impose a public transportation tax upon
10  all persons engaged in the metropolitan region in the business
11  of selling at retail motor fuel for operation of motor
12  vehicles upon public highways. The tax shall be at a rate not
13  to exceed 5% of the gross receipts from the sales of motor fuel
14  in the course of the business. As used in this Act, the term
15  "motor fuel" shall have the same meaning as in the Motor Fuel
16  Tax Law. The Board may provide for details of the tax. The
17  provisions of any tax shall conform, as closely as may be
18  practicable, to the provisions of the Municipal Retailers
19  Occupation Tax Act, including without limitation, conformity
20  to penalties with respect to the tax imposed and as to the
21  powers of the State Department of Revenue to promulgate and
22  enforce rules and regulations relating to the administration
23  and enforcement of the provisions of the tax imposed, except
24  that reference in the Act to any municipality shall refer to
25  the Authority and the tax shall be imposed only with regard to
26  receipts from sales of motor fuel in the metropolitan region,

 

 

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1  at rates as limited by this Section.
2  (c) In connection with the tax imposed under paragraph (b)
3  of this Section, the Board may impose a tax upon the privilege
4  of using in the metropolitan region motor fuel for the
5  operation of a motor vehicle upon public highways, the tax to
6  be at a rate not in excess of the rate of tax imposed under
7  paragraph (b) of this Section. The Board may provide for
8  details of the tax.
9  (d) The Board may impose a motor vehicle parking tax upon
10  the privilege of parking motor vehicles at off-street parking
11  facilities in the metropolitan region at which a fee is
12  charged, and may provide for reasonable classifications in and
13  exemptions to the tax, for administration and enforcement
14  thereof and for civil penalties and refunds thereunder and may
15  provide criminal penalties thereunder, the maximum penalties
16  not to exceed the maximum criminal penalties provided in the
17  Retailers' Occupation Tax Act. The Authority may collect and
18  enforce the tax itself or by contract with any unit of local
19  government. The State Department of Revenue shall have no
20  responsibility for the collection and enforcement unless the
21  Department agrees with the Authority to undertake the
22  collection and enforcement. As used in this paragraph, the
23  term "parking facility" means a parking area or structure
24  having parking spaces for more than 2 vehicles at which motor
25  vehicles are permitted to park in return for an hourly, daily,
26  or other periodic fee, whether publicly or privately owned,

 

 

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1  but does not include parking spaces on a public street, the use
2  of which is regulated by parking meters.
3  (e) The Board may impose a Regional Transportation
4  Authority Retailers' Occupation Tax upon all persons engaged
5  in the business of selling tangible personal property at
6  retail in the metropolitan region. In Cook County, the tax
7  rate shall be 1.25% of the gross receipts from sales of food
8  for human consumption that is to be consumed off the premises
9  where it is sold (other than alcoholic beverages, food
10  consisting of or infused with adult use cannabis, soft drinks,
11  candy, and food that has been prepared for immediate
12  consumption) and tangible personal property taxed at the 1%
13  rate under the Retailers' Occupation Tax Act (or at the 0% rate
14  imposed under this amendatory Act of the 102nd General
15  Assembly), and 1% of the gross receipts from other taxable
16  sales made in the course of that business. In DuPage, Kane,
17  Lake, McHenry, and Will counties, the tax rate shall be 0.75%
18  of the gross receipts from all taxable sales made in the course
19  of that business. The rate of tax imposed in DuPage, Kane,
20  Lake, McHenry, and Will counties under this Section on sales
21  of aviation fuel on or after December 1, 2019 shall, however,
22  be 0.25% unless the Regional Transportation Authority in
23  DuPage, Kane, Lake, McHenry, and Will counties has an
24  "airport-related purpose" and the additional 0.50% of the
25  0.75% tax on aviation fuel is expended for airport-related
26  purposes. If there is no airport-related purpose to which

 

 

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1  aviation fuel tax revenue is dedicated, then aviation fuel is
2  excluded from the additional 0.50% of the 0.75% tax. The tax
3  imposed under this Section and all civil penalties that may be
4  assessed as an incident thereof shall be collected and
5  enforced by the State Department of Revenue. The Department
6  shall have full power to administer and enforce this Section;
7  to collect all taxes and penalties so collected in the manner
8  hereinafter provided; and to determine all rights to credit
9  memoranda arising on account of the erroneous payment of tax
10  or penalty hereunder. In the administration of, and compliance
11  with this Section, the Department and persons who are subject
12  to this Section shall have the same rights, remedies,
13  privileges, immunities, powers, and duties, and be subject to
14  the same conditions, restrictions, limitations, penalties,
15  exclusions, exemptions, and definitions of terms, and employ
16  the same modes of procedure, as are prescribed in Sections 1,
17  1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
18  all provisions therein other than the State rate of tax), 2c, 3
19  (except as to the disposition of taxes and penalties
20  collected, and except that the retailer's discount is not
21  allowed for taxes paid on aviation fuel that are subject to the
22  revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
23  47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
24  6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of the
25  Retailers' Occupation Tax Act and Section 3-7 of the Uniform
26  Penalty and Interest Act, as fully as if those provisions were

 

 

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1  set forth herein.
2  The Board and DuPage, Kane, Lake, McHenry, and Will
3  counties must comply with the certification requirements for
4  airport-related purposes under Section 2-22 of the Retailers'
5  Occupation Tax Act. For purposes of this Section,
6  "airport-related purposes" has the meaning ascribed in Section
7  6z-20.2 of the State Finance Act. This exclusion for aviation
8  fuel only applies for so long as the revenue use requirements
9  of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
10  Authority.
11  Persons subject to any tax imposed under the authority
12  granted in this Section may reimburse themselves for their
13  seller's tax liability hereunder by separately stating the tax
14  as an additional charge, which charge may be stated in
15  combination in a single amount with State taxes that sellers
16  are required to collect under the Use Tax Act, under any
17  bracket schedules the Department may prescribe.
18  Whenever the Department determines that a refund should be
19  made under this Section to a claimant instead of issuing a
20  credit memorandum, the Department shall notify the State
21  Comptroller, who shall cause the warrant to be drawn for the
22  amount specified, and to the person named, in the notification
23  from the Department. The refund shall be paid by the State
24  Treasurer out of the Regional Transportation Authority tax
25  fund established under paragraph (n) of this Section or the
26  Local Government Aviation Trust Fund, as appropriate.

 

 

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1  If a tax is imposed under this subsection (e), a tax shall
2  also be imposed under subsections (f) and (g) of this Section.
3  For the purpose of determining whether a tax authorized
4  under this Section is applicable, a retail sale by a producer
5  of coal or other mineral mined in Illinois, is a sale at retail
6  at the place where the coal or other mineral mined in Illinois
7  is extracted from the earth. This paragraph does not apply to
8  coal or other mineral when it is delivered or shipped by the
9  seller to the purchaser at a point outside Illinois so that the
10  sale is exempt under the Federal Constitution as a sale in
11  interstate or foreign commerce.
12  No tax shall be imposed or collected under this subsection
13  on the sale of a motor vehicle in this State to a resident of
14  another state if that motor vehicle will not be titled in this
15  State.
16  Nothing in this Section shall be construed to authorize
17  the Regional Transportation Authority to impose a tax upon the
18  privilege of engaging in any business that under the
19  Constitution of the United States may not be made the subject
20  of taxation by this State.
21  (f) If a tax has been imposed under paragraph (e), a
22  Regional Transportation Authority Service Occupation Tax shall
23  also be imposed upon all persons engaged, in the metropolitan
24  region in the business of making sales of service, who as an
25  incident to making the sales of service, transfer tangible
26  personal property within the metropolitan region, either in

 

 

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1  the form of tangible personal property or in the form of real
2  estate as an incident to a sale of service. In Cook County, the
3  tax rate shall be: (1) 1.25% of the serviceman's cost price of
4  food prepared for immediate consumption and transferred
5  incident to a sale of service subject to the service
6  occupation tax by an entity that is located in the
7  metropolitan region and that is licensed under the Hospital
8  Licensing Act, the Nursing Home Care Act, the Assisted Living
9  and Shared Housing Act, the Specialized Mental Health
10  Rehabilitation Act of 2013, the ID/DD Community Care Act, or
11  the MC/DD Act, or the Child Care Act of 1969, or an entity that
12  holds a permit issued pursuant to the Life Care Facilities Act
13  that is located in the metropolitan region; (2) 1.25% of the
14  selling price of food for human consumption that is to be
15  consumed off the premises where it is sold (other than
16  alcoholic beverages, food consisting of or infused with adult
17  use cannabis, soft drinks, candy, and food that has been
18  prepared for immediate consumption) and tangible personal
19  property taxed at the 1% rate under the Service Occupation Tax
20  Act (or at the 0% rate imposed under this amendatory Act of the
21  102nd General Assembly); and (3) 1% of the selling price from
22  other taxable sales of tangible personal property transferred.
23  In DuPage, Kane, Lake, McHenry, and Will counties, the rate
24  shall be 0.75% of the selling price of all tangible personal
25  property transferred. The rate of tax imposed in DuPage, Kane,
26  Lake, McHenry, and Will counties under this Section on sales

 

 

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1  of aviation fuel on or after December 1, 2019 shall, however,
2  be 0.25% unless the Regional Transportation Authority in
3  DuPage, Kane, Lake, McHenry, and Will counties has an
4  "airport-related purpose" and the additional 0.50% of the
5  0.75% tax on aviation fuel is expended for airport-related
6  purposes. If there is no airport-related purpose to which
7  aviation fuel tax revenue is dedicated, then aviation fuel is
8  excluded from the additional 0.5% of the 0.75% tax.
9  The Board and DuPage, Kane, Lake, McHenry, and Will
10  counties must comply with the certification requirements for
11  airport-related purposes under Section 2-22 of the Retailers'
12  Occupation Tax Act. For purposes of this Section,
13  "airport-related purposes" has the meaning ascribed in Section
14  6z-20.2 of the State Finance Act. This exclusion for aviation
15  fuel only applies for so long as the revenue use requirements
16  of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
17  Authority.
18  The tax imposed under this paragraph and all civil
19  penalties that may be assessed as an incident thereof shall be
20  collected and enforced by the State Department of Revenue. The
21  Department shall have full power to administer and enforce
22  this paragraph; to collect all taxes and penalties due
23  hereunder; to dispose of taxes and penalties collected in the
24  manner hereinafter provided; and to determine all rights to
25  credit memoranda arising on account of the erroneous payment
26  of tax or penalty hereunder. In the administration of and

 

 

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1  compliance with this paragraph, the Department and persons who
2  are subject to this paragraph shall have the same rights,
3  remedies, privileges, immunities, powers, and duties, and be
4  subject to the same conditions, restrictions, limitations,
5  penalties, exclusions, exemptions, and definitions of terms,
6  and employ the same modes of procedure, as are prescribed in
7  Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
8  provisions therein other than the State rate of tax), 4
9  (except that the reference to the State shall be to the
10  Authority), 5, 7, 8 (except that the jurisdiction to which the
11  tax shall be a debt to the extent indicated in that Section 8
12  shall be the Authority), 9 (except as to the disposition of
13  taxes and penalties collected, and except that the returned
14  merchandise credit for this tax may not be taken against any
15  State tax, and except that the retailer's discount is not
16  allowed for taxes paid on aviation fuel that are subject to the
17  revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
18  47133), 10, 11, 12 (except the reference therein to Section 2b
19  of the Retailers' Occupation Tax Act), 13 (except that any
20  reference to the State shall mean the Authority), the first
21  paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service
22  Occupation Tax Act and Section 3-7 of the Uniform Penalty and
23  Interest Act, as fully as if those provisions were set forth
24  herein.
25  Persons subject to any tax imposed under the authority
26  granted in this paragraph may reimburse themselves for their

 

 

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1  serviceman's tax liability hereunder by separately stating the
2  tax as an additional charge, that charge may be stated in
3  combination in a single amount with State tax that servicemen
4  are authorized to collect under the Service Use Tax Act, under
5  any bracket schedules the Department may prescribe.
6  Whenever the Department determines that a refund should be
7  made under this paragraph to a claimant instead of issuing a
8  credit memorandum, the Department shall notify the State
9  Comptroller, who shall cause the warrant to be drawn for the
10  amount specified, and to the person named in the notification
11  from the Department. The refund shall be paid by the State
12  Treasurer out of the Regional Transportation Authority tax
13  fund established under paragraph (n) of this Section or the
14  Local Government Aviation Trust Fund, as appropriate.
15  Nothing in this paragraph shall be construed to authorize
16  the Authority to impose a tax upon the privilege of engaging in
17  any business that under the Constitution of the United States
18  may not be made the subject of taxation by the State.
19  (g) If a tax has been imposed under paragraph (e), a tax
20  shall also be imposed upon the privilege of using in the
21  metropolitan region, any item of tangible personal property
22  that is purchased outside the metropolitan region at retail
23  from a retailer, and that is titled or registered with an
24  agency of this State's government. In Cook County, the tax
25  rate shall be 1% of the selling price of the tangible personal
26  property, as "selling price" is defined in the Use Tax Act. In

 

 

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1  DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
2  shall be 0.75% of the selling price of the tangible personal
3  property, as "selling price" is defined in the Use Tax Act. The
4  tax shall be collected from persons whose Illinois address for
5  titling or registration purposes is given as being in the
6  metropolitan region. The tax shall be collected by the
7  Department of Revenue for the Regional Transportation
8  Authority. The tax must be paid to the State, or an exemption
9  determination must be obtained from the Department of Revenue,
10  before the title or certificate of registration for the
11  property may be issued. The tax or proof of exemption may be
12  transmitted to the Department by way of the State agency with
13  which, or the State officer with whom, the tangible personal
14  property must be titled or registered if the Department and
15  the State agency or State officer determine that this
16  procedure will expedite the processing of applications for
17  title or registration.
18  The Department shall have full power to administer and
19  enforce this paragraph; to collect all taxes, penalties, and
20  interest due hereunder; to dispose of taxes, penalties, and
21  interest collected in the manner hereinafter provided; and to
22  determine all rights to credit memoranda or refunds arising on
23  account of the erroneous payment of tax, penalty, or interest
24  hereunder. In the administration of and compliance with this
25  paragraph, the Department and persons who are subject to this
26  paragraph shall have the same rights, remedies, privileges,

 

 

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1  immunities, powers, and duties, and be subject to the same
2  conditions, restrictions, limitations, penalties, exclusions,
3  exemptions, and definitions of terms and employ the same modes
4  of procedure, as are prescribed in Sections 2 (except the
5  definition of "retailer maintaining a place of business in
6  this State"), 3 through 3-80 (except provisions pertaining to
7  the State rate of tax, and except provisions concerning
8  collection or refunding of the tax by retailers), 4, 11, 12,
9  12a, 14, 15, 19 (except the portions pertaining to claims by
10  retailers and except the last paragraph concerning refunds),
11  20, 21, and 22 of the Use Tax Act, and are not inconsistent
12  with this paragraph, as fully as if those provisions were set
13  forth herein.
14  Whenever the Department determines that a refund should be
15  made under this paragraph to a claimant instead of issuing a
16  credit memorandum, the Department shall notify the State
17  Comptroller, who shall cause the order to be drawn for the
18  amount specified, and to the person named in the notification
19  from the Department. The refund shall be paid by the State
20  Treasurer out of the Regional Transportation Authority tax
21  fund established under paragraph (n) of this Section.
22  (h) The Authority may impose a replacement vehicle tax of
23  $50 on any passenger car as defined in Section 1-157 of the
24  Illinois Vehicle Code purchased within the metropolitan region
25  by or on behalf of an insurance company to replace a passenger
26  car of an insured person in settlement of a total loss claim.

 

 

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1  The tax imposed may not become effective before the first day
2  of the month following the passage of the ordinance imposing
3  the tax and receipt of a certified copy of the ordinance by the
4  Department of Revenue. The Department of Revenue shall collect
5  the tax for the Authority in accordance with Sections 3-2002
6  and 3-2003 of the Illinois Vehicle Code.
7  The Department shall immediately pay over to the State
8  Treasurer, ex officio, as trustee, all taxes collected
9  hereunder.
10  As soon as possible after the first day of each month,
11  beginning January 1, 2011, upon certification of the
12  Department of Revenue, the Comptroller shall order
13  transferred, and the Treasurer shall transfer, to the STAR
14  Bonds Revenue Fund the local sales tax increment, as defined
15  in the Innovation Development and Economy Act, collected under
16  this Section during the second preceding calendar month for
17  sales within a STAR bond district.
18  After the monthly transfer to the STAR Bonds Revenue Fund,
19  on or before the 25th day of each calendar month, the
20  Department shall prepare and certify to the Comptroller the
21  disbursement of stated sums of money to the Authority. The
22  amount to be paid to the Authority shall be the amount
23  collected hereunder during the second preceding calendar month
24  by the Department, less any amount determined by the
25  Department to be necessary for the payment of refunds, and
26  less any amounts that are transferred to the STAR Bonds

 

 

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1  Revenue Fund. Within 10 days after receipt by the Comptroller
2  of the disbursement certification to the Authority provided
3  for in this Section to be given to the Comptroller by the
4  Department, the Comptroller shall cause the orders to be drawn
5  for that amount in accordance with the directions contained in
6  the certification.
7  (i) The Board may not impose any other taxes except as it
8  may from time to time be authorized by law to impose.
9  (j) A certificate of registration issued by the State
10  Department of Revenue to a retailer under the Retailers'
11  Occupation Tax Act or under the Service Occupation Tax Act
12  shall permit the registrant to engage in a business that is
13  taxed under the tax imposed under paragraphs (b), (e), (f) or
14  (g) of this Section and no additional registration shall be
15  required under the tax. A certificate issued under the Use Tax
16  Act or the Service Use Tax Act shall be applicable with regard
17  to any tax imposed under paragraph (c) of this Section.
18  (k) The provisions of any tax imposed under paragraph (c)
19  of this Section shall conform as closely as may be practicable
20  to the provisions of the Use Tax Act, including without
21  limitation conformity as to penalties with respect to the tax
22  imposed and as to the powers of the State Department of Revenue
23  to promulgate and enforce rules and regulations relating to
24  the administration and enforcement of the provisions of the
25  tax imposed. The taxes shall be imposed only on use within the
26  metropolitan region and at rates as provided in the paragraph.

 

 

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1  (l) The Board in imposing any tax as provided in
2  paragraphs (b) and (c) of this Section, shall, after seeking
3  the advice of the State Department of Revenue, provide means
4  for retailers, users or purchasers of motor fuel for purposes
5  other than those with regard to which the taxes may be imposed
6  as provided in those paragraphs to receive refunds of taxes
7  improperly paid, which provisions may be at variance with the
8  refund provisions as applicable under the Municipal Retailers
9  Occupation Tax Act. The State Department of Revenue may
10  provide for certificates of registration for users or
11  purchasers of motor fuel for purposes other than those with
12  regard to which taxes may be imposed as provided in paragraphs
13  (b) and (c) of this Section to facilitate the reporting and
14  nontaxability of the exempt sales or uses.
15  (m) Any ordinance imposing or discontinuing any tax under
16  this Section shall be adopted and a certified copy thereof
17  filed with the Department on or before June 1, whereupon the
18  Department of Revenue shall proceed to administer and enforce
19  this Section on behalf of the Regional Transportation
20  Authority as of September 1 next following such adoption and
21  filing. Beginning January 1, 1992, an ordinance or resolution
22  imposing or discontinuing the tax hereunder shall be adopted
23  and a certified copy thereof filed with the Department on or
24  before the first day of July, whereupon the Department shall
25  proceed to administer and enforce this Section as of the first
26  day of October next following such adoption and filing.

 

 

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1  Beginning January 1, 1993, an ordinance or resolution
2  imposing, increasing, decreasing, or discontinuing the tax
3  hereunder shall be adopted and a certified copy thereof filed
4  with the Department, whereupon the Department shall proceed to
5  administer and enforce this Section as of the first day of the
6  first month to occur not less than 60 days following such
7  adoption and filing. Any ordinance or resolution of the
8  Authority imposing a tax under this Section and in effect on
9  August 1, 2007 shall remain in full force and effect and shall
10  be administered by the Department of Revenue under the terms
11  and conditions and rates of tax established by such ordinance
12  or resolution until the Department begins administering and
13  enforcing an increased tax under this Section as authorized by
14  Public Act 95-708. The tax rates authorized by Public Act
15  95-708 are effective only if imposed by ordinance of the
16  Authority.
17  (n) Except as otherwise provided in this subsection (n),
18  the State Department of Revenue shall, upon collecting any
19  taxes as provided in this Section, pay the taxes over to the
20  State Treasurer as trustee for the Authority. The taxes shall
21  be held in a trust fund outside the State Treasury. If an
22  airport-related purpose has been certified, taxes and
23  penalties collected in DuPage, Kane, Lake, McHenry and Will
24  counties on aviation fuel sold on or after December 1, 2019
25  from the 0.50% of the 0.75% rate shall be immediately paid over
26  by the Department to the State Treasurer, ex officio, as

 

 

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1  trustee, for deposit into the Local Government Aviation Trust
2  Fund. The Department shall only pay moneys into the Local
3  Government Aviation Trust Fund under this Act for so long as
4  the revenue use requirements of 49 U.S.C. 47107(b) and 49
5  U.S.C. 47133 are binding on the Authority. On or before the
6  25th day of each calendar month, the State Department of
7  Revenue shall prepare and certify to the Comptroller of the
8  State of Illinois and to the Authority (i) the amount of taxes
9  collected in each county other than Cook County in the
10  metropolitan region, (not including, if an airport-related
11  purpose has been certified, the taxes and penalties collected
12  from the 0.50% of the 0.75% rate on aviation fuel sold on or
13  after December 1, 2019 that are deposited into the Local
14  Government Aviation Trust Fund) (ii) the amount of taxes
15  collected within the City of Chicago, and (iii) the amount
16  collected in that portion of Cook County outside of Chicago,
17  each amount less the amount necessary for the payment of
18  refunds to taxpayers located in those areas described in items
19  (i), (ii), and (iii), and less 1.5% of the remainder, which
20  shall be transferred from the trust fund into the Tax
21  Compliance and Administration Fund. The Department, at the
22  time of each monthly disbursement to the Authority, shall
23  prepare and certify to the State Comptroller the amount to be
24  transferred into the Tax Compliance and Administration Fund
25  under this subsection. Within 10 days after receipt by the
26  Comptroller of the certification of the amounts, the

 

 

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1  Comptroller shall cause an order to be drawn for the transfer
2  of the amount certified into the Tax Compliance and
3  Administration Fund and the payment of two-thirds of the
4  amounts certified in item (i) of this subsection to the
5  Authority and one-third of the amounts certified in item (i)
6  of this subsection to the respective counties other than Cook
7  County and the amount certified in items (ii) and (iii) of this
8  subsection to the Authority.
9  In addition to the disbursement required by the preceding
10  paragraph, an allocation shall be made in July 1991 and each
11  year thereafter to the Regional Transportation Authority. The
12  allocation shall be made in an amount equal to the average
13  monthly distribution during the preceding calendar year
14  (excluding the 2 months of lowest receipts) and the allocation
15  shall include the amount of average monthly distribution from
16  the Regional Transportation Authority Occupation and Use Tax
17  Replacement Fund. The distribution made in July 1992 and each
18  year thereafter under this paragraph and the preceding
19  paragraph shall be reduced by the amount allocated and
20  disbursed under this paragraph in the preceding calendar year.
21  The Department of Revenue shall prepare and certify to the
22  Comptroller for disbursement the allocations made in
23  accordance with this paragraph.
24  (o) Failure to adopt a budget ordinance or otherwise to
25  comply with Section 4.01 of this Act or to adopt a Five-year
26  Capital Program or otherwise to comply with paragraph (b) of

 

 

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1  Section 2.01 of this Act shall not affect the validity of any
2  tax imposed by the Authority otherwise in conformity with law.
3  (p) At no time shall a public transportation tax or motor
4  vehicle parking tax authorized under paragraphs (b), (c), and
5  (d) of this Section be in effect at the same time as any
6  retailers' occupation, use or service occupation tax
7  authorized under paragraphs (e), (f), and (g) of this Section
8  is in effect.
9  Any taxes imposed under the authority provided in
10  paragraphs (b), (c), and (d) shall remain in effect only until
11  the time as any tax authorized by paragraph (e), (f), or (g) of
12  this Section are imposed and becomes effective. Once any tax
13  authorized by paragraph (e), (f), or (g) is imposed the Board
14  may not reimpose taxes as authorized in paragraphs (b), (c),
15  and (d) of the Section unless any tax authorized by paragraph
16  (e), (f), or (g) of this Section becomes ineffective by means
17  other than an ordinance of the Board.
18  (q) Any existing rights, remedies and obligations
19  (including enforcement by the Regional Transportation
20  Authority) arising under any tax imposed under paragraph (b),
21  (c), or (d) of this Section shall not be affected by the
22  imposition of a tax under paragraph (e), (f), or (g) of this
23  Section.
24  (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
25  101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
26  Section 99. Effective date. This Act takes effect upon

 

 

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