Illinois 2023-2024 Regular Session

Illinois House Bill HB3144 Compare Versions

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1-Public Act 103-0781
21 HB3144 EnrolledLRB103 26309 HLH 52670 b HB3144 Enrolled LRB103 26309 HLH 52670 b
32 HB3144 Enrolled LRB103 26309 HLH 52670 b
4-AN ACT concerning revenue.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Use Tax Act is amended by changing Sections
8-3-5 and 3-10 as follows:
9-(35 ILCS 105/3-5)
10-Sec. 3-5. Exemptions. Use of the following tangible
11-personal property is exempt from the tax imposed by this Act:
12-(1) Personal property purchased from a corporation,
13-society, association, foundation, institution, or
14-organization, other than a limited liability company, that is
15-organized and operated as a not-for-profit service enterprise
16-for the benefit of persons 65 years of age or older if the
17-personal property was not purchased by the enterprise for the
18-purpose 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 a 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
25-under Section 501(c)(3) of the Internal Revenue Code and that
26-is organized and operated primarily for the presentation or
3+1 AN ACT concerning revenue.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Use Tax Act is amended by changing Sections
7+5 3-5 and 3-10 as follows:
8+6 (35 ILCS 105/3-5)
9+7 Sec. 3-5. Exemptions. Use of the following tangible
10+8 personal property is exempt from the tax imposed by this Act:
11+9 (1) Personal property purchased from a corporation,
12+10 society, association, foundation, institution, or
13+11 organization, other than a limited liability company, that is
14+12 organized and operated as a not-for-profit service enterprise
15+13 for the benefit of persons 65 years of age or older if the
16+14 personal property was not purchased by the enterprise for the
17+15 purpose of resale by the enterprise.
18+16 (2) Personal property purchased by a not-for-profit
19+17 Illinois county fair association for use in conducting,
20+18 operating, or promoting the county fair.
21+19 (3) Personal property purchased by a not-for-profit arts
22+20 or cultural organization that establishes, by proof required
23+21 by the Department by rule, that it has received an exemption
24+22 under Section 501(c)(3) of the Internal Revenue Code and that
25+23 is organized and operated primarily for the presentation or
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33-support of arts or cultural programming, activities, or
34-services. These organizations include, but are not limited to,
35-music and dramatic arts organizations such as symphony
36-orchestras and theatrical groups, arts and cultural service
37-organizations, local arts councils, visual arts organizations,
38-and media arts organizations. On and after July 1, 2001 (the
39-effective date of Public Act 92-35), however, an entity
40-otherwise eligible for this exemption shall not make tax-free
41-purchases unless it has an active identification number issued
42-by the Department.
43-(4) Except as otherwise provided in this Act, personal
44-property purchased by a governmental body, by a corporation,
45-society, association, foundation, or institution organized and
46-operated exclusively for charitable, religious, or educational
47-purposes, or by a not-for-profit corporation, society,
48-association, foundation, institution, or organization that has
49-no compensated officers or employees and that is organized and
50-operated primarily for the recreation of persons 55 years of
51-age or older. A limited liability company may qualify for the
52-exemption under this paragraph only if the limited liability
53-company is organized and operated exclusively for educational
54-purposes. On and after July 1, 1987, however, no entity
55-otherwise eligible for this exemption shall make tax-free
56-purchases unless it has an active exemption identification
57-number issued by the Department.
58-(5) Until July 1, 2003, a passenger car that is a
59-
60-
61-replacement vehicle to the extent that the purchase price of
62-the car is subject to the Replacement Vehicle Tax.
63-(6) Until July 1, 2003 and beginning again on September 1,
64-2004 through August 30, 2014, graphic arts machinery and
65-equipment, including repair and replacement parts, both new
66-and used, and including that manufactured on special order,
67-certified by the purchaser to be used primarily for graphic
68-arts production, and including machinery and equipment
69-purchased for lease. Equipment includes chemicals or chemicals
70-acting as catalysts but only if the chemicals or chemicals
71-acting as catalysts effect a direct and immediate change upon
72-a graphic arts product. Beginning on July 1, 2017, graphic
73-arts machinery and equipment is included in the manufacturing
74-and assembling machinery and equipment exemption under
75-paragraph (18).
76-(7) Farm chemicals.
77-(8) Legal tender, currency, medallions, or gold or silver
78-coinage issued by the State of Illinois, the government of the
79-United States of America, or the government of any foreign
80-country, and bullion.
81-(9) Personal property purchased from a teacher-sponsored
82-student organization affiliated with an elementary or
83-secondary school located in Illinois.
84-(10) A motor vehicle that is used for automobile renting,
85-as defined in the Automobile Renting Occupation and Use Tax
86-Act.
87-
88-
89-(11) Farm machinery and equipment, both new and used,
90-including that manufactured on special order, certified by the
91-purchaser to be used primarily for production agriculture or
92-State or federal agricultural programs, including individual
93-replacement parts for the machinery and equipment, including
94-machinery and equipment purchased for lease, and including
95-implements of husbandry defined in Section 1-130 of the
96-Illinois Vehicle Code, farm machinery and agricultural
97-chemical and fertilizer spreaders, and nurse wagons required
98-to be registered under Section 3-809 of the Illinois Vehicle
99-Code, but excluding other motor vehicles required to be
100-registered under the Illinois Vehicle Code. Horticultural
101-polyhouses or hoop houses used for propagating, growing, or
102-overwintering plants shall be considered farm machinery and
103-equipment under this item (11). Agricultural chemical tender
104-tanks and dry boxes shall include units sold separately from a
105-motor vehicle required to be licensed and units sold mounted
106-on a motor vehicle required to be licensed if the selling price
107-of the tender is separately stated.
108-Farm machinery and equipment shall include precision
109-farming equipment that is installed or purchased to be
110-installed on farm machinery and equipment, including, but not
111-limited to, tractors, harvesters, sprayers, planters, seeders,
112-or spreaders. Precision farming equipment includes, but is not
113-limited to, soil testing sensors, computers, monitors,
114-software, global positioning and mapping systems, and other
115-
116-
117-such equipment.
118-Farm machinery and equipment also includes computers,
119-sensors, software, and related equipment used primarily in the
120-computer-assisted operation of production agriculture
121-facilities, equipment, and activities such as, but not limited
122-to, the collection, monitoring, and correlation of animal and
123-crop data for the purpose of formulating animal diets and
124-agricultural chemicals.
125-Beginning on January 1, 2024, farm machinery and equipment
126-also includes electrical power generation equipment used
127-primarily for production agriculture.
128-This item (11) is exempt from the provisions of Section
129-3-90.
130-(12) Until June 30, 2013, fuel and petroleum products sold
131-to or used by an air common carrier, certified by the carrier
132-to be used for consumption, shipment, or storage in the
133-conduct of its business as an air common carrier, for a flight
134-destined for or returning from a location or locations outside
135-the United States without regard to previous or subsequent
136-domestic stopovers.
137-Beginning July 1, 2013, fuel and petroleum products sold
138-to or used by an air carrier, certified by the carrier to be
139-used for consumption, shipment, or storage in the conduct of
140-its business as an air common carrier, for a flight that (i) is
141-engaged in foreign trade or is engaged in trade between the
142-United States and any of its possessions and (ii) transports
143-
144-
145-at least one individual or package for hire from the city of
146-origination to the city of final destination on the same
147-aircraft, without regard to a change in the flight number of
148-that aircraft.
149-(13) Proceeds of mandatory service charges separately
150-stated on customers' bills for the purchase and consumption of
151-food and beverages purchased at retail from a retailer, to the
152-extent that the proceeds of the service charge are in fact
153-turned over as tips or as a substitute for tips to the
154-employees who participate directly in preparing, serving,
155-hosting or cleaning up the food or beverage function with
156-respect to which the service charge is imposed.
157-(14) Until July 1, 2003, oil field exploration, drilling,
158-and production equipment, including (i) rigs and parts of
159-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
160-pipe and tubular goods, including casing and drill strings,
161-(iii) pumps and pump-jack units, (iv) storage tanks and flow
162-lines, (v) any individual replacement part for oil field
163-exploration, drilling, and production equipment, and (vi)
164-machinery and equipment purchased for lease; but excluding
165-motor vehicles required to be registered under the Illinois
166-Vehicle Code.
167-(15) Photoprocessing machinery and equipment, including
168-repair and replacement parts, both new and used, including
169-that manufactured on special order, certified by the purchaser
170-to be used primarily for photoprocessing, and including
171-
172-
173-photoprocessing machinery and equipment purchased for lease.
174-(16) Until July 1, 2028, coal and aggregate exploration,
175-mining, off-highway hauling, processing, maintenance, and
176-reclamation equipment, including replacement parts and
177-equipment, and including equipment purchased for lease, but
178-excluding motor vehicles required to be registered under the
179-Illinois Vehicle Code. The changes made to this Section by
180-Public Act 97-767 apply on and after July 1, 2003, but no claim
181-for credit or refund is allowed on or after August 16, 2013
182-(the effective date of Public Act 98-456) for such taxes paid
183-during the period beginning July 1, 2003 and ending on August
184-16, 2013 (the effective date of Public Act 98-456).
185-(17) Until July 1, 2003, distillation machinery and
186-equipment, sold as a unit or kit, assembled or installed by the
187-retailer, certified by the user to be used only for the
188-production of ethyl alcohol that will be used for consumption
189-as motor fuel or as a component of motor fuel for the personal
190-use of the user, and not subject to sale or resale.
191-(18) Manufacturing and assembling machinery and equipment
192-used primarily in the process of manufacturing or assembling
193-tangible personal property for wholesale or retail sale or
194-lease, whether that sale or lease is made directly by the
195-manufacturer or by some other person, whether the materials
196-used in the process are owned by the manufacturer or some other
197-person, or whether that sale or lease is made apart from or as
198-an incident to the seller's engaging in the service occupation
199-
200-
201-of producing machines, tools, dies, jigs, patterns, gauges, or
202-other similar items of no commercial value on special order
203-for a particular purchaser. The exemption provided by this
204-paragraph (18) includes production related tangible personal
205-property, as defined in Section 3-50, purchased on or after
206-July 1, 2019. The exemption provided by this paragraph (18)
207-does not include machinery and equipment used in (i) the
208-generation of electricity for wholesale or retail sale; (ii)
209-the generation or treatment of natural or artificial gas for
210-wholesale or retail sale that is delivered to customers
211-through pipes, pipelines, or mains; or (iii) the treatment of
212-water for wholesale or retail sale that is delivered to
213-customers through pipes, pipelines, or mains. The provisions
214-of Public Act 98-583 are declaratory of existing law as to the
215-meaning and scope of this exemption. Beginning on July 1,
216-2017, the exemption provided by this paragraph (18) includes,
217-but is not limited to, graphic arts machinery and equipment,
218-as defined in paragraph (6) of this Section.
219-(19) Personal property delivered to a purchaser or
220-purchaser's donee inside Illinois when the purchase order for
221-that personal property was received by a florist located
222-outside Illinois who has a florist located inside Illinois
223-deliver the personal property.
224-(20) Semen used for artificial insemination of livestock
225-for direct agricultural production.
226-(21) Horses, or interests in horses, registered with and
227-
228-
229-meeting the requirements of any of the Arabian Horse Club
230-Registry of America, Appaloosa Horse Club, American Quarter
231-Horse Association, United States Trotting Association, or
232-Jockey Club, as appropriate, used for purposes of breeding or
233-racing for prizes. This item (21) is exempt from the
234-provisions of Section 3-90, and the exemption provided for
235-under this item (21) applies for all periods beginning May 30,
236-1995, but no claim for credit or refund is allowed on or after
237-January 1, 2008 for such taxes paid during the period
238-beginning May 30, 2000 and ending on January 1, 2008.
239-(22) Computers and communications equipment utilized for
240-any hospital purpose and equipment used in the diagnosis,
241-analysis, or treatment of hospital patients purchased by a
242-lessor who leases the equipment, under a lease of one year or
243-longer executed or in effect at the time the lessor would
244-otherwise be subject to the tax imposed by this Act, to a
245-hospital that has been issued an active tax exemption
246-identification number by the Department under Section 1g of
247-the Retailers' Occupation Tax Act. If the equipment is leased
248-in a manner that does not qualify for this exemption or is used
249-in any other non-exempt manner, the lessor shall be liable for
250-the tax imposed under this Act or the Service Use Tax Act, as
251-the case may be, based on the fair market value of the property
252-at the time the non-qualifying use occurs. No lessor shall
253-collect or attempt to collect an amount (however designated)
254-that purports to reimburse that lessor for the tax imposed by
255-
256-
257-this Act or the Service Use Tax Act, as the case may be, if the
258-tax has not been paid by the lessor. If a lessor improperly
259-collects any such amount from the lessee, the lessee shall
260-have a legal right to claim a refund of that amount from the
261-lessor. If, however, that amount is not refunded to the lessee
262-for any reason, the lessor is liable to pay that amount to the
263-Department.
264-(23) Personal property purchased by a lessor who leases
265-the property, under a lease of one year or longer executed or
266-in effect at the time the lessor would otherwise be subject to
267-the tax imposed by this Act, to a governmental body that has
268-been issued an active sales tax exemption identification
269-number by the Department under Section 1g of the Retailers'
270-Occupation Tax Act. If the property is leased in a manner that
271-does not qualify for this exemption or used in any other
272-non-exempt manner, the lessor shall be liable for the tax
273-imposed under this Act or the Service Use Tax Act, as the case
274-may be, based on the fair market value of the property at the
275-time the non-qualifying use occurs. No lessor shall collect or
276-attempt to collect an amount (however designated) that
277-purports to reimburse that lessor for the tax imposed by this
278-Act or the Service Use Tax Act, as the case may be, if the tax
279-has not been paid by the lessor. If a lessor improperly
280-collects any such amount from the lessee, the lessee shall
281-have a legal right to claim a refund of that amount from the
282-lessor. If, however, that amount is not refunded to the lessee
283-
284-
285-for any reason, the lessor is liable to pay that amount to the
286-Department.
287-(24) Beginning with taxable years ending on or after
288-December 31, 1995 and ending with taxable years ending on or
289-before December 31, 2004, personal property that is donated
290-for disaster relief to be used in a State or federally declared
291-disaster area in Illinois or bordering Illinois by a
292-manufacturer or retailer that is registered in this State to a
293-corporation, society, association, foundation, or institution
294-that has been issued a sales tax exemption identification
295-number by the Department that assists victims of the disaster
296-who reside within the declared disaster area.
297-(25) Beginning with taxable years ending on or after
298-December 31, 1995 and ending with taxable years ending on or
299-before December 31, 2004, personal property that is used in
300-the performance of infrastructure repairs in this State,
301-including, but not limited to, municipal roads and streets,
302-access roads, bridges, sidewalks, waste disposal systems,
303-water and sewer line extensions, water distribution and
304-purification facilities, storm water drainage and retention
305-facilities, and sewage treatment facilities, resulting from a
306-State or federally declared disaster in Illinois or bordering
307-Illinois when such repairs are initiated on facilities located
308-in the declared disaster area within 6 months after the
309-disaster.
310-(26) Beginning July 1, 1999, game or game birds purchased
311-
312-
313-at a "game breeding and hunting preserve area" as that term is
314-used in the Wildlife Code. This paragraph is exempt from the
315-provisions of Section 3-90.
316-(27) A motor vehicle, as that term is defined in Section
317-1-146 of the Illinois Vehicle Code, that is donated to a
318-corporation, limited liability company, society, association,
319-foundation, or institution that is determined by the
320-Department to be organized and operated exclusively for
321-educational purposes. For purposes of this exemption, "a
322-corporation, limited liability company, society, association,
323-foundation, or institution organized and operated exclusively
324-for educational purposes" means all tax-supported public
325-schools, private schools that offer systematic instruction in
326-useful branches of learning by methods common to public
327-schools and that compare favorably in their scope and
328-intensity with the course of study presented in tax-supported
329-schools, and vocational or technical schools or institutes
330-organized and operated exclusively to provide a course of
331-study of not less than 6 weeks duration and designed to prepare
332-individuals to follow a trade or to pursue a manual,
333-technical, mechanical, industrial, business, or commercial
334-occupation.
335-(28) Beginning January 1, 2000, personal property,
336-including food, purchased through fundraising events for the
337-benefit of a public or private elementary or secondary school,
338-a group of those schools, or one or more school districts if
339-
340-
341-the events are sponsored by an entity recognized by the school
342-district that consists primarily of volunteers and includes
343-parents and teachers of the school children. This paragraph
344-does not apply to fundraising events (i) for the benefit of
345-private home instruction or (ii) for which the fundraising
346-entity purchases the personal property sold at the events from
347-another individual or entity that sold the property for the
348-purpose of resale by the fundraising entity and that profits
349-from the sale to the fundraising entity. This paragraph is
350-exempt from the provisions of Section 3-90.
351-(29) Beginning January 1, 2000 and through December 31,
352-2001, new or used automatic vending machines that prepare and
353-serve hot food and beverages, including coffee, soup, and
354-other items, and replacement parts for these machines.
355-Beginning January 1, 2002 and through June 30, 2003, machines
356-and parts for machines used in commercial, coin-operated
357-amusement and vending business if a use or occupation tax is
358-paid on the gross receipts derived from the use of the
359-commercial, coin-operated amusement and vending machines. This
360-paragraph is exempt from the provisions of Section 3-90.
361-(30) Beginning January 1, 2001 and through June 30, 2016,
362-food for human consumption that is to be consumed off the
363-premises where it is sold (other than alcoholic beverages,
364-soft drinks, and food that has been prepared for immediate
365-consumption) and prescription and nonprescription medicines,
366-drugs, medical appliances, and insulin, urine testing
367-
368-
369-materials, syringes, and needles used by diabetics, for human
370-use, when purchased for use by a person receiving medical
371-assistance under Article V of the Illinois Public Aid Code who
372-resides in a licensed long-term care facility, as defined in
373-the Nursing Home Care Act, or in a licensed facility as defined
374-in the ID/DD Community Care Act, the MC/DD Act, or the
375-Specialized Mental Health Rehabilitation Act of 2013.
376-(31) Beginning on August 2, 2001 (the effective date of
377-Public Act 92-227), computers and communications equipment
378-utilized for any hospital purpose and equipment used in the
379-diagnosis, analysis, or treatment of hospital patients
380-purchased by a lessor who leases the equipment, under a lease
381-of one year or longer executed or in effect at the time the
382-lessor would otherwise be subject to the tax imposed by this
383-Act, to a hospital that has been issued an active tax exemption
384-identification number by the Department under Section 1g of
385-the Retailers' Occupation Tax Act. If the equipment is leased
386-in a manner that does not qualify for this exemption or is used
387-in any other nonexempt manner, the lessor shall be liable for
388-the tax imposed under this Act or the Service Use Tax Act, as
389-the case may be, based on the fair market value of the property
390-at the time the nonqualifying use occurs. No lessor shall
391-collect or attempt to collect an amount (however designated)
392-that purports to reimburse that lessor for the tax imposed by
393-this Act or the Service Use Tax Act, as the case may be, if the
394-tax has not been paid by the lessor. If a lessor improperly
395-
396-
397-collects any such amount from the lessee, the lessee shall
398-have a legal right to claim a refund of that amount from the
399-lessor. If, however, that amount is not refunded to the lessee
400-for any reason, the lessor is liable to pay that amount to the
401-Department. This paragraph is exempt from the provisions of
402-Section 3-90.
403-(32) Beginning on August 2, 2001 (the effective date of
404-Public Act 92-227), personal property purchased by a lessor
405-who leases the property, under a lease of one year or longer
406-executed or in effect at the time the lessor would otherwise be
407-subject to the tax imposed by this Act, to a governmental body
408-that has been issued an active sales tax exemption
409-identification number by the Department under Section 1g of
410-the Retailers' Occupation Tax Act. If the property is leased
411-in a manner that does not qualify for this exemption or used in
412-any other nonexempt manner, the lessor shall be liable for the
413-tax imposed under this Act or the Service Use Tax Act, as the
414-case may be, based on the fair market value of the property at
415-the time the nonqualifying use occurs. No lessor shall collect
416-or attempt to collect an amount (however designated) that
417-purports to reimburse that lessor for the tax imposed by this
418-Act or the Service Use Tax Act, as the case may be, if the tax
419-has not been paid by the lessor. If a lessor improperly
420-collects any such amount from the lessee, the lessee shall
421-have a legal right to claim a refund of that amount from the
422-lessor. If, however, that amount is not refunded to the lessee
423-
424-
425-for any reason, the lessor is liable to pay that amount to the
426-Department. This paragraph is exempt from the provisions of
427-Section 3-90.
428-(33) On and after July 1, 2003 and through June 30, 2004,
429-the use in this State of motor vehicles of the second division
430-with a gross vehicle weight in excess of 8,000 pounds and that
431-are subject to the commercial distribution fee imposed under
432-Section 3-815.1 of the Illinois Vehicle Code. Beginning on
433-July 1, 2004 and through June 30, 2005, the use in this State
434-of motor vehicles of the second division: (i) with a gross
435-vehicle weight rating in excess of 8,000 pounds; (ii) that are
436-subject to the commercial distribution fee imposed under
437-Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
438-are primarily used for commercial purposes. Through June 30,
439-2005, this exemption applies to repair and replacement parts
440-added after the initial purchase of such a motor vehicle if
441-that motor vehicle is used in a manner that would qualify for
442-the rolling stock exemption otherwise provided for in this
443-Act. For purposes of this paragraph, the term "used for
444-commercial purposes" means the transportation of persons or
445-property in furtherance of any commercial or industrial
446-enterprise, whether for-hire or not.
447-(34) Beginning January 1, 2008, tangible personal property
448-used in the construction or maintenance of a community water
449-supply, as defined under Section 3.145 of the Environmental
450-Protection Act, that is operated by a not-for-profit
451-
452-
453-corporation that holds a valid water supply permit issued
454-under Title IV of the Environmental Protection Act. This
455-paragraph is exempt from the provisions of Section 3-90.
456-(35) Beginning January 1, 2010 and continuing through
457-December 31, 2029, materials, parts, equipment, components,
458-and furnishings incorporated into or upon an aircraft as part
459-of the modification, refurbishment, completion, replacement,
460-repair, or maintenance of the aircraft. This exemption
461-includes consumable supplies used in the modification,
462-refurbishment, completion, replacement, repair, and
463-maintenance of aircraft. However, until January 1, 2024, this
464-exemption excludes any materials, parts, equipment,
465-components, and consumable supplies used in the modification,
466-replacement, repair, and maintenance of aircraft engines or
467-power plants, whether such engines or power plants are
468-installed or uninstalled upon any such aircraft. "Consumable
469-supplies" include, but are not limited to, adhesive, tape,
470-sandpaper, general purpose lubricants, cleaning solution,
471-latex gloves, and protective films.
472-Beginning January 1, 2010 and continuing through December
473-31, 2023, this exemption applies only to the use of qualifying
474-tangible personal property by persons who modify, refurbish,
475-complete, repair, replace, or maintain aircraft and who (i)
476-hold an Air Agency Certificate and are empowered to operate an
477-approved repair station by the Federal Aviation
478-Administration, (ii) have a Class IV Rating, and (iii) conduct
479-
480-
481-operations in accordance with Part 145 of the Federal Aviation
482-Regulations. From January 1, 2024 through December 31, 2029,
483-this exemption applies only to the use of qualifying tangible
484-personal property by: (A) persons who modify, refurbish,
485-complete, repair, replace, or maintain aircraft and who (i)
486-hold an Air Agency Certificate and are empowered to operate an
487-approved repair station by the Federal Aviation
488-Administration, (ii) have a Class IV Rating, and (iii) conduct
489-operations in accordance with Part 145 of the Federal Aviation
490-Regulations; and (B) persons who engage in the modification,
491-replacement, repair, and maintenance of aircraft engines or
492-power plants without regard to whether or not those persons
493-meet the qualifications of item (A).
494-The exemption does not include aircraft operated by a
495-commercial air carrier providing scheduled passenger air
496-service pursuant to authority issued under Part 121 or Part
497-129 of the Federal Aviation Regulations. The changes made to
498-this paragraph (35) by Public Act 98-534 are declarative of
499-existing law. It is the intent of the General Assembly that the
500-exemption under this paragraph (35) applies continuously from
501-January 1, 2010 through December 31, 2024; however, no claim
502-for credit or refund is allowed for taxes paid as a result of
503-the disallowance of this exemption on or after January 1, 2015
504-and prior to February 5, 2020 (the effective date of Public Act
505-101-629).
506-(36) Tangible personal property purchased by a
507-
508-
509-public-facilities corporation, as described in Section
510-11-65-10 of the Illinois Municipal Code, for purposes of
511-constructing or furnishing a municipal convention hall, but
512-only if the legal title to the municipal convention hall is
513-transferred to the municipality without any further
514-consideration by or on behalf of the municipality at the time
515-of the completion of the municipal convention hall or upon the
516-retirement or redemption of any bonds or other debt
517-instruments issued by the public-facilities corporation in
518-connection with the development of the municipal convention
519-hall. This exemption includes existing public-facilities
520-corporations as provided in Section 11-65-25 of the Illinois
521-Municipal Code. This paragraph is exempt from the provisions
522-of Section 3-90.
523-(37) Beginning January 1, 2017 and through December 31,
524-2026, menstrual pads, tampons, and menstrual cups.
525-(38) Merchandise that is subject to the Rental Purchase
526-Agreement Occupation and Use Tax. The purchaser must certify
527-that the item is purchased to be rented subject to a
528-rental-purchase rental purchase agreement, as defined in the
529-Rental-Purchase Rental Purchase Agreement Act, and provide
530-proof of registration under the Rental Purchase Agreement
531-Occupation and Use Tax Act. This paragraph is exempt from the
532-provisions of Section 3-90.
533-(39) Tangible personal property purchased by a purchaser
534-who is exempt from the tax imposed by this Act by operation of
535-
536-
537-federal law. This paragraph is exempt from the provisions of
538-Section 3-90.
539-(40) Qualified tangible personal property used in the
540-construction or operation of a data center that has been
541-granted a certificate of exemption by the Department of
542-Commerce and Economic Opportunity, whether that tangible
543-personal property is purchased by the owner, operator, or
544-tenant of the data center or by a contractor or subcontractor
545-of the owner, operator, or tenant. Data centers that would
546-have qualified for a certificate of exemption prior to January
547-1, 2020 had Public Act 101-31 been in effect may apply for and
548-obtain an exemption for subsequent purchases of computer
549-equipment or enabling software purchased or leased to upgrade,
550-supplement, or replace computer equipment or enabling software
551-purchased or leased in the original investment that would have
552-qualified.
553-The Department of Commerce and Economic Opportunity shall
554-grant a certificate of exemption under this item (40) to
555-qualified data centers as defined by Section 605-1025 of the
556-Department of Commerce and Economic Opportunity Law of the
557-Civil Administrative Code of Illinois.
558-For the purposes of this item (40):
559-"Data center" means a building or a series of
560-buildings rehabilitated or constructed to house working
561-servers in one physical location or multiple sites within
562-the State of Illinois.
563-
564-
565-"Qualified tangible personal property" means:
566-electrical systems and equipment; climate control and
567-chilling equipment and systems; mechanical systems and
568-equipment; monitoring and secure systems; emergency
569-generators; hardware; computers; servers; data storage
570-devices; network connectivity equipment; racks; cabinets;
571-telecommunications cabling infrastructure; raised floor
572-systems; peripheral components or systems; software;
573-mechanical, electrical, or plumbing systems; battery
574-systems; cooling systems and towers; temperature control
575-systems; other cabling; and other data center
576-infrastructure equipment and systems necessary to operate
577-qualified tangible personal property, including fixtures;
578-and component parts of any of the foregoing, including
579-installation, maintenance, repair, refurbishment, and
580-replacement of qualified tangible personal property to
581-generate, transform, transmit, distribute, or manage
582-electricity necessary to operate qualified tangible
583-personal property; and all other tangible personal
584-property that is essential to the operations of a computer
585-data center. The term "qualified tangible personal
586-property" also includes building materials physically
587-incorporated into in to the qualifying data center. To
588-document the exemption allowed under this Section, the
589-retailer must obtain from the purchaser a copy of the
590-certificate of eligibility issued by the Department of
591-
592-
593-Commerce and Economic Opportunity.
594-This item (40) is exempt from the provisions of Section
595-3-90.
596-(41) Beginning July 1, 2022, breast pumps, breast pump
597-collection and storage supplies, and breast pump kits. This
598-item (41) is exempt from the provisions of Section 3-90. As
599-used in this item (41):
600-"Breast pump" means an electrically controlled or
601-manually controlled pump device designed or marketed to be
602-used to express milk from a human breast during lactation,
603-including the pump device and any battery, AC adapter, or
604-other power supply unit that is used to power the pump
605-device and is packaged and sold with the pump device at the
606-time of sale.
607-"Breast pump collection and storage supplies" means
608-items of tangible personal property designed or marketed
609-to be used in conjunction with a breast pump to collect
610-milk expressed from a human breast and to store collected
611-milk until it is ready for consumption.
612-"Breast pump collection and storage supplies"
613-includes, but is not limited to: breast shields and breast
614-shield connectors; breast pump tubes and tubing adapters;
615-breast pump valves and membranes; backflow protectors and
616-backflow protector adaptors; bottles and bottle caps
617-specific to the operation of the breast pump; and breast
618-milk storage bags.
619-
620-
621-"Breast pump collection and storage supplies" does not
622-include: (1) bottles and bottle caps not specific to the
623-operation of the breast pump; (2) breast pump travel bags
624-and other similar carrying accessories, including ice
625-packs, labels, and other similar products; (3) breast pump
626-cleaning supplies; (4) nursing bras, bra pads, breast
627-shells, and other similar products; and (5) creams,
628-ointments, and other similar products that relieve
629-breastfeeding-related symptoms or conditions of the
630-breasts or nipples, unless sold as part of a breast pump
631-kit that is pre-packaged by the breast pump manufacturer
632-or distributor.
633-"Breast pump kit" means a kit that: (1) contains no
634-more than a breast pump, breast pump collection and
635-storage supplies, a rechargeable battery for operating the
636-breast pump, a breastmilk cooler, bottle stands, ice
637-packs, and a breast pump carrying case; and (2) is
638-pre-packaged as a breast pump kit by the breast pump
639-manufacturer or distributor.
640-(42) Tangible personal property sold by or on behalf of
641-the State Treasurer pursuant to the Revised Uniform Unclaimed
642-Property Act. This item (42) is exempt from the provisions of
643-Section 3-90.
644-(43) Beginning on January 1, 2024, tangible personal
645-property purchased by an active duty member of the armed
646-forces of the United States who presents valid military
647-
648-
649-identification and purchases the property using a form of
650-payment where the federal government is the payor. The member
651-of the armed forces must complete, at the point of sale, a form
652-prescribed by the Department of Revenue documenting that the
653-transaction is eligible for the exemption under this
654-paragraph. Retailers must keep the form as documentation of
655-the exemption in their records for a period of not less than 6
656-years. "Armed forces of the United States" means the United
657-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
658-This paragraph is exempt from the provisions of Section 3-90.
659-(44) Beginning on January 1, 2026, as further defined in
660-Section 3-10, food for human consumption that is to be
661-consumed off the premises where it is sold (other than
662-alcoholic beverages, food consisting of or infused with adult
663-use cannabis, soft drinks, candy, and food that has been
664-prepared for immediate consumption). This item (44) is exempt
665-from the provisions of Section 3-90.
666-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
667-Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
668-eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
669-Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
670-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
671-revised 12-12-23.)
672-(35 ILCS 105/3-10)
673-Sec. 3-10. Rate of tax. Unless otherwise provided in this
674-
675-
676-Section, the tax imposed by this Act is at the rate of 6.25% of
677-either the selling price or the fair market value, if any, of
678-the tangible personal property. In all cases where property
679-functionally used or consumed is the same as the property that
680-was purchased at retail, then the tax is imposed on the selling
681-price of the property. In all cases where property
682-functionally used or consumed is a by-product or waste product
683-that has been refined, manufactured, or produced from property
684-purchased at retail, then the tax is imposed on the lower of
685-the fair market value, if any, of the specific property so used
686-in this State or on the selling price of the property purchased
687-at retail. For purposes of this Section "fair market value"
688-means the price at which property would change hands between a
689-willing buyer and a willing seller, neither being under any
690-compulsion to buy or sell and both having reasonable knowledge
691-of the relevant facts. The fair market value shall be
692-established by Illinois sales by the taxpayer of the same
693-property as that functionally used or consumed, or if there
694-are no such sales by the taxpayer, then comparable sales or
695-purchases of property of like kind and character in Illinois.
696-Beginning on July 1, 2000 and through December 31, 2000,
697-with respect to motor fuel, as defined in Section 1.1 of the
698-Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
699-the Use Tax Act, the tax is imposed at the rate of 1.25%.
700-Beginning on August 6, 2010 through August 15, 2010, and
701-beginning again on August 5, 2022 through August 14, 2022,
702-
703-
704-with respect to sales tax holiday items as defined in Section
705-3-6 of this Act, the tax is imposed at the rate of 1.25%.
706-With respect to gasohol, the tax imposed by this Act
707-applies to (i) 70% of the proceeds of sales made on or after
708-January 1, 1990, and before July 1, 2003, (ii) 80% of the
709-proceeds of sales made on or after July 1, 2003 and on or
710-before July 1, 2017, (iii) 100% of the proceeds of sales made
711-after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
712-the proceeds of sales made on or after January 1, 2024 and on
713-or before December 31, 2028, and (v) 100% of the proceeds of
714-sales made after December 31, 2028. If, at any time, however,
715-the tax under this Act on sales of gasohol is imposed at the
716-rate of 1.25%, then the tax imposed by this Act applies to 100%
717-of the proceeds of sales of gasohol made during that time.
718-With respect to mid-range ethanol blends, the tax imposed
719-by this Act applies to (i) 80% of the proceeds of sales made on
720-or after January 1, 2024 and on or before December 31, 2028 and
721-(ii) 100% of the proceeds of sales made thereafter. If, at any
722-time, however, the tax under this Act on sales of mid-range
723-ethanol blends is imposed at the rate of 1.25%, then the tax
724-imposed by this Act applies to 100% of the proceeds of sales of
725-mid-range ethanol blends made during that time.
726-With respect to majority blended ethanol fuel, the tax
727-imposed by this Act does not apply to the proceeds of sales
728-made on or after July 1, 2003 and on or before December 31,
729-2028 but applies to 100% of the proceeds of sales made
730-
731-
732-thereafter.
733-With respect to biodiesel blends with no less than 1% and
734-no more than 10% biodiesel, the tax imposed by this Act applies
735-to (i) 80% of the proceeds of sales made on or after July 1,
736-2003 and on or before December 31, 2018 and (ii) 100% of the
737-proceeds of sales made after December 31, 2018 and before
738-January 1, 2024. On and after January 1, 2024 and on or before
739-December 31, 2030, the taxation of biodiesel, renewable
740-diesel, and biodiesel blends shall be as provided in Section
741-3-5.1. If, at any time, however, the tax under this Act on
742-sales of biodiesel blends with no less than 1% and no more than
743-10% biodiesel is imposed at the rate of 1.25%, then the tax
744-imposed by this Act applies to 100% of the proceeds of sales of
745-biodiesel blends with no less than 1% and no more than 10%
746-biodiesel made during that time.
747-With respect to biodiesel and biodiesel blends with more
748-than 10% but no more than 99% biodiesel, the tax imposed by
749-this Act does not apply to the proceeds of sales made on or
750-after July 1, 2003 and on or before December 31, 2023. On and
751-after January 1, 2024 and on or before December 31, 2030, the
752-taxation of biodiesel, renewable diesel, and biodiesel blends
753-shall be as provided in Section 3-5.1.
754-Until July 1, 2022 and from beginning again on July 1, 2023
755-through December 31, 2025, with respect to food for human
756-consumption that is to be consumed off the premises where it is
757-sold (other than alcoholic beverages, food consisting of or
758-
759-
760-infused with adult use cannabis, soft drinks, and food that
761-has been prepared for immediate consumption), the tax is
762-imposed at the rate of 1%. Beginning on July 1, 2022 and until
763-July 1, 2023, with respect to food for human consumption that
764-is to be consumed off the premises where it is sold (other than
765-alcoholic beverages, food consisting of or infused with adult
766-use cannabis, soft drinks, and food that has been prepared for
767-immediate consumption), the tax is imposed at the rate of 0%.
768-On and after January 1, 2026, food for human consumption that
769-is to be consumed off the premises where it is sold (other than
770-alcoholic beverages, food consisting of or infused with adult
771-use cannabis, soft drinks, candy, and food that has been
772-prepared for immediate consumption) is exempt from the tax
773-imposed by this Act.
774-With respect to prescription and nonprescription
775-medicines, drugs, medical appliances, products classified as
776-Class III medical devices by the United States Food and Drug
777-Administration that are used for cancer treatment pursuant to
778-a prescription, as well as any accessories and components
779-related to those devices, modifications to a motor vehicle for
780-the purpose of rendering it usable by a person with a
781-disability, and insulin, blood sugar testing materials,
782-syringes, and needles used by human diabetics, the tax is
783-imposed at the rate of 1%. For the purposes of this Section,
784-until September 1, 2009: the term "soft drinks" means any
785-complete, finished, ready-to-use, non-alcoholic drink, whether
786-
787-
788-carbonated or not, including, but not limited to, soda water,
789-cola, fruit juice, vegetable juice, carbonated water, and all
790-other preparations commonly known as soft drinks of whatever
791-kind or description that are contained in any closed or sealed
792-bottle, can, carton, or container, regardless of size; but
793-"soft drinks" does not include coffee, tea, non-carbonated
794-water, infant formula, milk or milk products as defined in the
795-Grade A Pasteurized Milk and Milk Products Act, or drinks
796-containing 50% or more natural fruit or vegetable juice.
797-Notwithstanding any other provisions of this Act,
798-beginning September 1, 2009, "soft drinks" means non-alcoholic
799-beverages that contain natural or artificial sweeteners. "Soft
800-drinks" does not include beverages that contain milk or milk
801-products, soy, rice or similar milk substitutes, or greater
802-than 50% of vegetable or fruit juice by volume.
803-Until August 1, 2009, and notwithstanding any other
804-provisions of this Act, "food for human consumption that is to
805-be consumed off the premises where it is sold" includes all
806-food sold through a vending machine, except soft drinks and
807-food products that are dispensed hot from a vending machine,
808-regardless of the location of the vending machine. Beginning
809-August 1, 2009, and notwithstanding any other provisions of
810-this Act, "food for human consumption that is to be consumed
811-off the premises where it is sold" includes all food sold
812-through a vending machine, except soft drinks, candy, and food
813-products that are dispensed hot from a vending machine,
814-
815-
816-regardless of the location of the vending machine.
817-Notwithstanding any other provisions of this Act,
818-beginning September 1, 2009, "food for human consumption that
819-is to be consumed off the premises where it is sold" does not
820-include candy. For purposes of this Section, "candy" means a
821-preparation of sugar, honey, or other natural or artificial
822-sweeteners in combination with chocolate, fruits, nuts or
823-other ingredients or flavorings in the form of bars, drops, or
824-pieces. "Candy" does not include any preparation that contains
825-flour or requires refrigeration.
826-Notwithstanding any other provisions of this Act,
827-beginning September 1, 2009, "nonprescription medicines and
828-drugs" does not include grooming and hygiene products. For
829-purposes of this Section, "grooming and hygiene products"
830-includes, but is not limited to, soaps and cleaning solutions,
831-shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
832-lotions and screens, unless those products are available by
833-prescription only, regardless of whether the products meet the
834-definition of "over-the-counter-drugs". For the purposes of
835-this paragraph, "over-the-counter-drug" means a drug for human
836-use that contains a label that identifies the product as a drug
837-as required by 21 CFR 201.66. The "over-the-counter-drug"
838-label includes:
839-(A) a "Drug Facts" panel; or
840-(B) a statement of the "active ingredient(s)" with a
841-list of those ingredients contained in the compound,
842-
843-
844-substance or preparation.
845-Beginning on January 1, 2014 (the effective date of Public
846-Act 98-122), "prescription and nonprescription medicines and
847-drugs" includes medical cannabis purchased from a registered
848-dispensing organization under the Compassionate Use of Medical
849-Cannabis Program Act.
850-As used in this Section, "adult use cannabis" means
851-cannabis subject to tax under the Cannabis Cultivation
852-Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
853-and does not include cannabis subject to tax under the
854-Compassionate Use of Medical Cannabis Program Act.
855-If the property that is purchased at retail from a
856-retailer is acquired outside Illinois and used outside
857-Illinois before being brought to Illinois for use here and is
858-taxable under this Act, the "selling price" on which the tax is
859-computed shall be reduced by an amount that represents a
860-reasonable allowance for depreciation for the period of prior
861-out-of-state use.
862-(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
863-Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
864-60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
865-4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
866-Section 10. The Service Use Tax Act is amended by changing
867-Sections 3-5 and 3-10 as follows:
868-
869-
870-(35 ILCS 110/3-5)
871-Sec. 3-5. Exemptions. Use of the following tangible
872-personal property is exempt from the tax imposed by this Act:
873-(1) Personal property purchased from a corporation,
874-society, association, foundation, institution, or
875-organization, other than a limited liability company, that is
876-organized and operated as a not-for-profit service enterprise
877-for the benefit of persons 65 years of age or older if the
878-personal property was not purchased by the enterprise for the
879-purpose of resale by the enterprise.
880-(2) Personal property purchased by a non-profit Illinois
881-county fair association for use in conducting, operating, or
882-promoting the county fair.
883-(3) Personal property purchased by a not-for-profit arts
884-or cultural organization that establishes, by proof required
885-by the Department by rule, that it has received an exemption
886-under Section 501(c)(3) of the Internal Revenue Code and that
887-is organized and operated primarily for the presentation or
888-support of arts or cultural programming, activities, or
889-services. These organizations include, but are not limited to,
890-music and dramatic arts organizations such as symphony
891-orchestras and theatrical groups, arts and cultural service
892-organizations, local arts councils, visual arts organizations,
893-and media arts organizations. On and after July 1, 2001 (the
894-effective date of Public Act 92-35), however, an entity
895-otherwise eligible for this exemption shall not make tax-free
896-
897-
898-purchases unless it has an active identification number issued
899-by the Department.
900-(4) Legal tender, currency, medallions, or gold or silver
901-coinage issued by the State of Illinois, the government of the
902-United States of America, or the government of any foreign
903-country, and bullion.
904-(5) Until July 1, 2003 and beginning again on September 1,
905-2004 through August 30, 2014, graphic arts machinery and
906-equipment, including repair and replacement parts, both new
907-and used, and including that manufactured on special order or
908-purchased for lease, certified by the purchaser to be used
909-primarily for graphic arts production. Equipment includes
910-chemicals or chemicals acting as catalysts but only if the
911-chemicals or chemicals acting as catalysts effect a direct and
912-immediate change upon a graphic arts product. Beginning on
913-July 1, 2017, graphic arts machinery and equipment is included
914-in the manufacturing and assembling machinery and equipment
915-exemption under Section 2 of this Act.
916-(6) Personal property purchased from a teacher-sponsored
917-student organization affiliated with an elementary or
918-secondary school located in Illinois.
919-(7) Farm machinery and equipment, both new and used,
920-including that manufactured on special order, certified by the
921-purchaser to be used primarily for production agriculture or
922-State or federal agricultural programs, including individual
923-replacement parts for the machinery and equipment, including
924-
925-
926-machinery and equipment purchased for lease, and including
927-implements of husbandry defined in Section 1-130 of the
928-Illinois Vehicle Code, farm machinery and agricultural
929-chemical and fertilizer spreaders, and nurse wagons required
930-to be registered under Section 3-809 of the Illinois Vehicle
931-Code, but excluding other motor vehicles required to be
932-registered under the Illinois Vehicle Code. Horticultural
933-polyhouses or hoop houses used for propagating, growing, or
934-overwintering plants shall be considered farm machinery and
935-equipment under this item (7). Agricultural chemical tender
936-tanks and dry boxes shall include units sold separately from a
937-motor vehicle required to be licensed and units sold mounted
938-on a motor vehicle required to be licensed if the selling price
939-of the tender is separately stated.
940-Farm machinery and equipment shall include precision
941-farming equipment that is installed or purchased to be
942-installed on farm machinery and equipment, including, but not
943-limited to, tractors, harvesters, sprayers, planters, seeders,
944-or spreaders. Precision farming equipment includes, but is not
945-limited to, soil testing sensors, computers, monitors,
946-software, global positioning and mapping systems, and other
947-such equipment.
948-Farm machinery and equipment also includes computers,
949-sensors, software, and related equipment used primarily in the
950-computer-assisted operation of production agriculture
951-facilities, equipment, and activities such as, but not limited
952-
953-
954-to, the collection, monitoring, and correlation of animal and
955-crop data for the purpose of formulating animal diets and
956-agricultural chemicals.
957-Beginning on January 1, 2024, farm machinery and equipment
958-also includes electrical power generation equipment used
959-primarily for production agriculture.
960-This item (7) is exempt from the provisions of Section
961-3-75.
962-(8) Until June 30, 2013, fuel and petroleum products sold
963-to or used by an air common carrier, certified by the carrier
964-to be used for consumption, shipment, or storage in the
965-conduct of its business as an air common carrier, for a flight
966-destined for or returning from a location or locations outside
967-the United States without regard to previous or subsequent
968-domestic stopovers.
969-Beginning July 1, 2013, fuel and petroleum products sold
970-to or used by an air carrier, certified by the carrier to be
971-used for consumption, shipment, or storage in the conduct of
972-its business as an air common carrier, for a flight that (i) is
973-engaged in foreign trade or is engaged in trade between the
974-United States and any of its possessions and (ii) transports
975-at least one individual or package for hire from the city of
976-origination to the city of final destination on the same
977-aircraft, without regard to a change in the flight number of
978-that aircraft.
979-(9) Proceeds of mandatory service charges separately
980-
981-
982-stated on customers' bills for the purchase and consumption of
983-food and beverages acquired as an incident to the purchase of a
984-service from a serviceman, to the extent that the proceeds of
985-the service charge are in fact turned over as tips or as a
986-substitute for tips to the employees who participate directly
987-in preparing, serving, hosting or cleaning up the food or
988-beverage function with respect to which the service charge is
989-imposed.
990-(10) Until July 1, 2003, oil field exploration, drilling,
991-and production equipment, including (i) rigs and parts of
992-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
993-pipe and tubular goods, including casing and drill strings,
994-(iii) pumps and pump-jack units, (iv) storage tanks and flow
995-lines, (v) any individual replacement part for oil field
996-exploration, drilling, and production equipment, and (vi)
997-machinery and equipment purchased for lease; but excluding
998-motor vehicles required to be registered under the Illinois
999-Vehicle Code.
1000-(11) Proceeds from the sale of photoprocessing machinery
1001-and equipment, including repair and replacement parts, both
1002-new and used, including that manufactured on special order,
1003-certified by the purchaser to be used primarily for
1004-photoprocessing, and including photoprocessing machinery and
1005-equipment purchased for lease.
1006-(12) Until July 1, 2028, coal and aggregate exploration,
1007-mining, off-highway hauling, processing, maintenance, and
1008-
1009-
1010-reclamation equipment, including replacement parts and
1011-equipment, and including equipment purchased for lease, but
1012-excluding motor vehicles required to be registered under the
1013-Illinois Vehicle Code. The changes made to this Section by
1014-Public Act 97-767 apply on and after July 1, 2003, but no claim
1015-for credit or refund is allowed on or after August 16, 2013
1016-(the effective date of Public Act 98-456) for such taxes paid
1017-during the period beginning July 1, 2003 and ending on August
1018-16, 2013 (the effective date of Public Act 98-456).
1019-(13) Semen used for artificial insemination of livestock
1020-for direct agricultural production.
1021-(14) Horses, or interests in horses, registered with and
1022-meeting the requirements of any of the Arabian Horse Club
1023-Registry of America, Appaloosa Horse Club, American Quarter
1024-Horse Association, United States Trotting Association, or
1025-Jockey Club, as appropriate, used for purposes of breeding or
1026-racing for prizes. This item (14) is exempt from the
1027-provisions of Section 3-75, and the exemption provided for
1028-under this item (14) applies for all periods beginning May 30,
1029-1995, but no claim for credit or refund is allowed on or after
1030-January 1, 2008 (the effective date of Public Act 95-88) for
1031-such taxes paid during the period beginning May 30, 2000 and
1032-ending on January 1, 2008 (the effective date of Public Act
1033-95-88).
1034-(15) Computers and communications equipment utilized for
1035-any hospital purpose and equipment used in the diagnosis,
1036-
1037-
1038-analysis, or treatment of hospital patients purchased by a
1039-lessor who leases the equipment, under a lease of one year or
1040-longer executed or in effect at the time the lessor would
1041-otherwise be subject to the tax imposed by this Act, to a
1042-hospital that has been issued an active tax exemption
1043-identification number by the Department under Section 1g of
1044-the Retailers' Occupation Tax Act. If the equipment is leased
1045-in a manner that does not qualify for this exemption or is used
1046-in any other non-exempt manner, the lessor shall be liable for
1047-the tax imposed under this Act or the Use Tax Act, as the case
1048-may be, based on the fair market value of the property at the
1049-time the non-qualifying use occurs. No lessor shall collect or
1050-attempt to collect an amount (however designated) that
1051-purports to reimburse that lessor for the tax imposed by this
1052-Act or the Use Tax Act, as the case may be, if the tax has not
1053-been paid by the lessor. If a lessor improperly collects any
1054-such amount from the lessee, the lessee shall have a legal
1055-right to claim a refund of that amount from the lessor. If,
1056-however, that amount is not refunded to the lessee for any
1057-reason, the lessor is liable to pay that amount to the
1058-Department.
1059-(16) Personal property purchased by a lessor who leases
1060-the property, under a lease of one year or longer executed or
1061-in effect at the time the lessor would otherwise be subject to
1062-the tax imposed by this Act, to a governmental body that has
1063-been issued an active tax exemption identification number by
1064-
1065-
1066-the Department under Section 1g of the Retailers' Occupation
1067-Tax Act. If the property is leased in a manner that does not
1068-qualify for this exemption or is used in any other non-exempt
1069-manner, the lessor shall be liable for the tax imposed under
1070-this Act or the Use Tax Act, as the case may be, based on the
1071-fair market value of the property at the time the
1072-non-qualifying use occurs. No lessor shall collect or attempt
1073-to collect an amount (however designated) that purports to
1074-reimburse that lessor for the tax imposed by this Act or the
1075-Use Tax Act, as the case may be, if the tax has not been paid
1076-by the lessor. If a lessor improperly collects any such amount
1077-from the lessee, the lessee shall have a legal right to claim a
1078-refund of that amount from the lessor. If, however, that
1079-amount is not refunded to the lessee for any reason, the lessor
1080-is liable to pay that amount to the Department.
1081-(17) Beginning with taxable years ending on or after
1082-December 31, 1995 and ending with taxable years ending on or
1083-before December 31, 2004, personal property that is donated
1084-for disaster relief to be used in a State or federally declared
1085-disaster area in Illinois or bordering Illinois by a
1086-manufacturer or retailer that is registered in this State to a
1087-corporation, society, association, foundation, or institution
1088-that has been issued a sales tax exemption identification
1089-number by the Department that assists victims of the disaster
1090-who reside within the declared disaster area.
1091-(18) Beginning with taxable years ending on or after
1092-
1093-
1094-December 31, 1995 and ending with taxable years ending on or
1095-before December 31, 2004, personal property that is used in
1096-the performance of infrastructure repairs in this State,
1097-including, but not limited to, municipal roads and streets,
1098-access roads, bridges, sidewalks, waste disposal systems,
1099-water and sewer line extensions, water distribution and
1100-purification facilities, storm water drainage and retention
1101-facilities, and sewage treatment facilities, resulting from a
1102-State or federally declared disaster in Illinois or bordering
1103-Illinois when such repairs are initiated on facilities located
1104-in the declared disaster area within 6 months after the
1105-disaster.
1106-(19) Beginning July 1, 1999, game or game birds purchased
1107-at a "game breeding and hunting preserve area" as that term is
1108-used in the Wildlife Code. This paragraph is exempt from the
1109-provisions of Section 3-75.
1110-(20) A motor vehicle, as that term is defined in Section
1111-1-146 of the Illinois Vehicle Code, that is donated to a
1112-corporation, limited liability company, society, association,
1113-foundation, or institution that is determined by the
1114-Department to be organized and operated exclusively for
1115-educational purposes. For purposes of this exemption, "a
1116-corporation, limited liability company, society, association,
1117-foundation, or institution organized and operated exclusively
1118-for educational purposes" means all tax-supported public
1119-schools, private schools that offer systematic instruction in
1120-
1121-
1122-useful branches of learning by methods common to public
1123-schools and that compare favorably in their scope and
1124-intensity with the course of study presented in tax-supported
1125-schools, and vocational or technical schools or institutes
1126-organized and operated exclusively to provide a course of
1127-study of not less than 6 weeks duration and designed to prepare
1128-individuals to follow a trade or to pursue a manual,
1129-technical, mechanical, industrial, business, or commercial
1130-occupation.
1131-(21) Beginning January 1, 2000, personal property,
1132-including food, purchased through fundraising events for the
1133-benefit of a public or private elementary or secondary school,
1134-a group of those schools, or one or more school districts if
1135-the events are sponsored by an entity recognized by the school
1136-district that consists primarily of volunteers and includes
1137-parents and teachers of the school children. This paragraph
1138-does not apply to fundraising events (i) for the benefit of
1139-private home instruction or (ii) for which the fundraising
1140-entity purchases the personal property sold at the events from
1141-another individual or entity that sold the property for the
1142-purpose of resale by the fundraising entity and that profits
1143-from the sale to the fundraising entity. This paragraph is
1144-exempt from the provisions of Section 3-75.
1145-(22) Beginning January 1, 2000 and through December 31,
1146-2001, new or used automatic vending machines that prepare and
1147-serve hot food and beverages, including coffee, soup, and
1148-
1149-
1150-other items, and replacement parts for these machines.
1151-Beginning January 1, 2002 and through June 30, 2003, machines
1152-and parts for machines used in commercial, coin-operated
1153-amusement and vending business if a use or occupation tax is
1154-paid on the gross receipts derived from the use of the
1155-commercial, coin-operated amusement and vending machines. This
1156-paragraph is exempt from the provisions of Section 3-75.
1157-(23) Beginning August 23, 2001 and through June 30, 2016,
1158-food for human consumption that is to be consumed off the
1159-premises where it is sold (other than alcoholic beverages,
1160-soft drinks, and food that has been prepared for immediate
1161-consumption) and prescription and nonprescription medicines,
1162-drugs, medical appliances, and insulin, urine testing
1163-materials, syringes, and needles used by diabetics, for human
1164-use, when purchased for use by a person receiving medical
1165-assistance under Article V of the Illinois Public Aid Code who
1166-resides in a licensed long-term care facility, as defined in
1167-the Nursing Home Care Act, or in a licensed facility as defined
1168-in the ID/DD Community Care Act, the MC/DD Act, or the
1169-Specialized Mental Health Rehabilitation Act of 2013.
1170-(24) Beginning on August 2, 2001 (the effective date of
1171-Public Act 92-227), computers and communications equipment
1172-utilized for any hospital purpose and equipment used in the
1173-diagnosis, analysis, or treatment of hospital patients
1174-purchased by a lessor who leases the equipment, under a lease
1175-of one year or longer executed or in effect at the time the
1176-
1177-
1178-lessor would otherwise be subject to the tax imposed by this
1179-Act, to a hospital that has been issued an active tax exemption
1180-identification number by the Department under Section 1g of
1181-the Retailers' Occupation Tax Act. If the equipment is leased
1182-in a manner that does not qualify for this exemption or is used
1183-in any other nonexempt manner, the lessor shall be liable for
1184-the tax imposed under this Act or the Use Tax Act, as the case
1185-may be, based on the fair market value of the property at the
1186-time the nonqualifying use occurs. No lessor shall collect or
1187-attempt to collect an amount (however designated) that
1188-purports to reimburse that lessor for the tax imposed by this
1189-Act or the Use Tax Act, as the case may be, if the tax has not
1190-been paid by the lessor. If a lessor improperly collects any
1191-such amount from the lessee, the lessee shall have a legal
1192-right to claim a refund of that amount from the lessor. If,
1193-however, that amount is not refunded to the lessee for any
1194-reason, the lessor is liable to pay that amount to the
1195-Department. This paragraph is exempt from the provisions of
1196-Section 3-75.
1197-(25) Beginning on August 2, 2001 (the effective date of
1198-Public Act 92-227), personal property purchased by a lessor
1199-who leases the property, under a lease of one year or longer
1200-executed or in effect at the time the lessor would otherwise be
1201-subject to the tax imposed by this Act, to a governmental body
1202-that has been issued an active tax exemption identification
1203-number by the Department under Section 1g of the Retailers'
1204-
1205-
1206-Occupation Tax Act. If the property is leased in a manner that
1207-does not qualify for this exemption or is used in any other
1208-nonexempt manner, the lessor shall be liable for the tax
1209-imposed under this Act or the Use Tax Act, as the case may be,
1210-based on the fair market value of the property at the time the
1211-nonqualifying use occurs. No lessor shall collect or attempt
1212-to collect an amount (however designated) that purports to
1213-reimburse that lessor for the tax imposed by this Act or the
1214-Use Tax Act, as the case may be, if the tax has not been paid
1215-by the lessor. If a lessor improperly collects any such amount
1216-from the lessee, the lessee shall have a legal right to claim a
1217-refund of that amount from the lessor. If, however, that
1218-amount is not refunded to the lessee for any reason, the lessor
1219-is liable to pay that amount to the Department. This paragraph
1220-is exempt from the provisions of Section 3-75.
1221-(26) Beginning January 1, 2008, tangible personal property
1222-used in the construction or maintenance of a community water
1223-supply, as defined under Section 3.145 of the Environmental
1224-Protection Act, that is operated by a not-for-profit
1225-corporation that holds a valid water supply permit issued
1226-under Title IV of the Environmental Protection Act. This
1227-paragraph is exempt from the provisions of Section 3-75.
1228-(27) Beginning January 1, 2010 and continuing through
1229-December 31, 2029, materials, parts, equipment, components,
1230-and furnishings incorporated into or upon an aircraft as part
1231-of the modification, refurbishment, completion, replacement,
1232-
1233-
1234-repair, or maintenance of the aircraft. This exemption
1235-includes consumable supplies used in the modification,
1236-refurbishment, completion, replacement, repair, and
1237-maintenance of aircraft. However, until January 1, 2024, this
1238-exemption excludes any materials, parts, equipment,
1239-components, and consumable supplies used in the modification,
1240-replacement, repair, and maintenance of aircraft engines or
1241-power plants, whether such engines or power plants are
1242-installed or uninstalled upon any such aircraft. "Consumable
1243-supplies" include, but are not limited to, adhesive, tape,
1244-sandpaper, general purpose lubricants, cleaning solution,
1245-latex gloves, and protective films.
1246-Beginning January 1, 2010 and continuing through December
1247-31, 2023, this exemption applies only to the use of qualifying
1248-tangible personal property transferred incident to the
1249-modification, refurbishment, completion, replacement, repair,
1250-or maintenance of aircraft by persons who (i) hold an Air
1251-Agency Certificate and are empowered to operate an approved
1252-repair station by the Federal Aviation Administration, (ii)
1253-have a Class IV Rating, and (iii) conduct operations in
1254-accordance with Part 145 of the Federal Aviation Regulations.
1255-From January 1, 2024 through December 31, 2029, this exemption
1256-applies only to the use of qualifying tangible personal
1257-property by: (A) persons who modify, refurbish, complete,
1258-repair, replace, or maintain aircraft and who (i) hold an Air
1259-Agency Certificate and are empowered to operate an approved
1260-
1261-
1262-repair station by the Federal Aviation Administration, (ii)
1263-have a Class IV Rating, and (iii) conduct operations in
1264-accordance with Part 145 of the Federal Aviation Regulations;
1265-and (B) persons who engage in the modification, replacement,
1266-repair, and maintenance of aircraft engines or power plants
1267-without regard to whether or not those persons meet the
1268-qualifications of item (A).
1269-The exemption does not include aircraft operated by a
1270-commercial air carrier providing scheduled passenger air
1271-service pursuant to authority issued under Part 121 or Part
1272-129 of the Federal Aviation Regulations. The changes made to
1273-this paragraph (27) by Public Act 98-534 are declarative of
1274-existing law. It is the intent of the General Assembly that the
1275-exemption under this paragraph (27) applies continuously from
1276-January 1, 2010 through December 31, 2024; however, no claim
1277-for credit or refund is allowed for taxes paid as a result of
1278-the disallowance of this exemption on or after January 1, 2015
1279-and prior to February 5, 2020 (the effective date of Public Act
1280-101-629).
1281-(28) Tangible personal property purchased by a
1282-public-facilities corporation, as described in Section
1283-11-65-10 of the Illinois Municipal Code, for purposes of
1284-constructing or furnishing a municipal convention hall, but
1285-only if the legal title to the municipal convention hall is
1286-transferred to the municipality without any further
1287-consideration by or on behalf of the municipality at the time
1288-
1289-
1290-of the completion of the municipal convention hall or upon the
1291-retirement or redemption of any bonds or other debt
1292-instruments issued by the public-facilities corporation in
1293-connection with the development of the municipal convention
1294-hall. This exemption includes existing public-facilities
1295-corporations as provided in Section 11-65-25 of the Illinois
1296-Municipal Code. This paragraph is exempt from the provisions
1297-of Section 3-75.
1298-(29) Beginning January 1, 2017 and through December 31,
1299-2026, menstrual pads, tampons, and menstrual cups.
1300-(30) Tangible personal property transferred to a purchaser
1301-who is exempt from the tax imposed by this Act by operation of
1302-federal law. This paragraph is exempt from the provisions of
1303-Section 3-75.
1304-(31) Qualified tangible personal property used in the
1305-construction or operation of a data center that has been
1306-granted a certificate of exemption by the Department of
1307-Commerce and Economic Opportunity, whether that tangible
1308-personal property is purchased by the owner, operator, or
1309-tenant of the data center or by a contractor or subcontractor
1310-of the owner, operator, or tenant. Data centers that would
1311-have qualified for a certificate of exemption prior to January
1312-1, 2020 had Public Act 101-31 been in effect, may apply for and
1313-obtain an exemption for subsequent purchases of computer
1314-equipment or enabling software purchased or leased to upgrade,
1315-supplement, or replace computer equipment or enabling software
1316-
1317-
1318-purchased or leased in the original investment that would have
1319-qualified.
1320-The Department of Commerce and Economic Opportunity shall
1321-grant a certificate of exemption under this item (31) to
1322-qualified data centers as defined by Section 605-1025 of the
1323-Department of Commerce and Economic Opportunity Law of the
1324-Civil Administrative Code of Illinois.
1325-For the purposes of this item (31):
1326-"Data center" means a building or a series of
1327-buildings rehabilitated or constructed to house working
1328-servers in one physical location or multiple sites within
1329-the State of Illinois.
1330-"Qualified tangible personal property" means:
1331-electrical systems and equipment; climate control and
1332-chilling equipment and systems; mechanical systems and
1333-equipment; monitoring and secure systems; emergency
1334-generators; hardware; computers; servers; data storage
1335-devices; network connectivity equipment; racks; cabinets;
1336-telecommunications cabling infrastructure; raised floor
1337-systems; peripheral components or systems; software;
1338-mechanical, electrical, or plumbing systems; battery
1339-systems; cooling systems and towers; temperature control
1340-systems; other cabling; and other data center
1341-infrastructure equipment and systems necessary to operate
1342-qualified tangible personal property, including fixtures;
1343-and component parts of any of the foregoing, including
1344-
1345-
1346-installation, maintenance, repair, refurbishment, and
1347-replacement of qualified tangible personal property to
1348-generate, transform, transmit, distribute, or manage
1349-electricity necessary to operate qualified tangible
1350-personal property; and all other tangible personal
1351-property that is essential to the operations of a computer
1352-data center. The term "qualified tangible personal
1353-property" also includes building materials physically
1354-incorporated into in to the qualifying data center. To
1355-document the exemption allowed under this Section, the
1356-retailer must obtain from the purchaser a copy of the
1357-certificate of eligibility issued by the Department of
1358-Commerce and Economic Opportunity.
1359-This item (31) is exempt from the provisions of Section
1360-3-75.
1361-(32) Beginning July 1, 2022, breast pumps, breast pump
1362-collection and storage supplies, and breast pump kits. This
1363-item (32) is exempt from the provisions of Section 3-75. As
1364-used in this item (32):
1365-"Breast pump" means an electrically controlled or
1366-manually controlled pump device designed or marketed to be
1367-used to express milk from a human breast during lactation,
1368-including the pump device and any battery, AC adapter, or
1369-other power supply unit that is used to power the pump
1370-device and is packaged and sold with the pump device at the
1371-time of sale.
1372-
1373-
1374-"Breast pump collection and storage supplies" means
1375-items of tangible personal property designed or marketed
1376-to be used in conjunction with a breast pump to collect
1377-milk expressed from a human breast and to store collected
1378-milk until it is ready for consumption.
1379-"Breast pump collection and storage supplies"
1380-includes, but is not limited to: breast shields and breast
1381-shield connectors; breast pump tubes and tubing adapters;
1382-breast pump valves and membranes; backflow protectors and
1383-backflow protector adaptors; bottles and bottle caps
1384-specific to the operation of the breast pump; and breast
1385-milk storage bags.
1386-"Breast pump collection and storage supplies" does not
1387-include: (1) bottles and bottle caps not specific to the
1388-operation of the breast pump; (2) breast pump travel bags
1389-and other similar carrying accessories, including ice
1390-packs, labels, and other similar products; (3) breast pump
1391-cleaning supplies; (4) nursing bras, bra pads, breast
1392-shells, and other similar products; and (5) creams,
1393-ointments, and other similar products that relieve
1394-breastfeeding-related symptoms or conditions of the
1395-breasts or nipples, unless sold as part of a breast pump
1396-kit that is pre-packaged by the breast pump manufacturer
1397-or distributor.
1398-"Breast pump kit" means a kit that: (1) contains no
1399-more than a breast pump, breast pump collection and
1400-
1401-
1402-storage supplies, a rechargeable battery for operating the
1403-breast pump, a breastmilk cooler, bottle stands, ice
1404-packs, and a breast pump carrying case; and (2) is
1405-pre-packaged as a breast pump kit by the breast pump
1406-manufacturer or distributor.
1407-(33) Tangible personal property sold by or on behalf of
1408-the State Treasurer pursuant to the Revised Uniform Unclaimed
1409-Property Act. This item (33) is exempt from the provisions of
1410-Section 3-75.
1411-(34) Beginning on January 1, 2024, tangible personal
1412-property purchased by an active duty member of the armed
1413-forces of the United States who presents valid military
1414-identification and purchases the property using a form of
1415-payment where the federal government is the payor. The member
1416-of the armed forces must complete, at the point of sale, a form
1417-prescribed by the Department of Revenue documenting that the
1418-transaction is eligible for the exemption under this
1419-paragraph. Retailers must keep the form as documentation of
1420-the exemption in their records for a period of not less than 6
1421-years. "Armed forces of the United States" means the United
1422-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1423-This paragraph is exempt from the provisions of Section 3-75.
1424-(35) Beginning on January 1, 2026, as further defined in
1425-Section 3-10, food prepared for immediate consumption and
1426-transferred incident to a sale of service subject to this Act
1427-or the Service Occupation Tax Act by an entity licensed under
1428-
1429-
1430-the Hospital Licensing Act, the Nursing Home Care Act, the
1431-Assisted Living and Shared Housing Act, the ID/DD Community
1432-Care Act, the MC/DD Act, the Specialized Mental Health
1433-Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1434-by an entity that holds a permit issued pursuant to the Life
1435-Care Facilities Act. This item (35) is exempt from the
1436-provisions of Section 3-75.
1437-(36) Beginning on January 1, 2026, as further defined in
1438-Section 3-10, food for human consumption that is to be
1439-consumed off the premises where it is sold (other than
1440-alcoholic beverages, food consisting of or infused with adult
1441-use cannabis, soft drinks, candy, and food that has been
1442-prepared for immediate consumption). This item (36) is exempt
1443-from the provisions of Section 3-75.
1444-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1445-Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1446-75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1447-Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1448-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1449-revised 12-12-23.)
1450-(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
1451-Sec. 3-10. Rate of tax. Unless otherwise provided in this
1452-Section, the tax imposed by this Act is at the rate of 6.25% of
1453-the selling price of tangible personal property transferred as
1454-an incident to the sale of service, but, for the purpose of
1455-
1456-
1457-computing this tax, in no event shall the selling price be less
1458-than the cost price of the property to the serviceman.
1459-Beginning on July 1, 2000 and through December 31, 2000,
1460-with respect to motor fuel, as defined in Section 1.1 of the
1461-Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1462-the Use Tax Act, the tax is imposed at the rate of 1.25%.
1463-With respect to gasohol, as defined in the Use Tax Act, the
1464-tax imposed by this Act applies to (i) 70% of the selling price
1465-of property transferred as an incident to the sale of service
1466-on or after January 1, 1990, and before July 1, 2003, (ii) 80%
1467-of the selling price of property transferred as an incident to
1468-the sale of service on or after July 1, 2003 and on or before
1469-July 1, 2017, (iii) 100% of the selling price of property
1470-transferred as an incident to the sale of service after July 1,
1471-2017 and before January 1, 2024, (iv) 90% of the selling price
1472-of property transferred as an incident to the sale of service
1473-on or after January 1, 2024 and on or before December 31, 2028,
1474-and (v) 100% of the selling price of property transferred as an
1475-incident to the sale of service after December 31, 2028. If, at
1476-any time, however, the tax under this Act on sales of gasohol,
1477-as defined in the Use Tax Act, is imposed at the rate of 1.25%,
1478-then the tax imposed by this Act applies to 100% of the
1479-proceeds of sales of gasohol made during that time.
1480-With respect to mid-range ethanol blends, as defined in
1481-Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
1482-applies to (i) 80% of the selling price of property
1483-
1484-
1485-transferred as an incident to the sale of service on or after
1486-January 1, 2024 and on or before December 31, 2028 and (ii)
1487-100% of the selling price of property transferred as an
1488-incident to the sale of service after December 31, 2028. If, at
1489-any time, however, the tax under this Act on sales of mid-range
1490-ethanol blends is imposed at the rate of 1.25%, then the tax
1491-imposed by this Act applies to 100% of the selling price of
1492-mid-range ethanol blends transferred as an incident to the
1493-sale of service during that time.
1494-With respect to majority blended ethanol fuel, as defined
1495-in the Use Tax Act, the tax imposed by this Act does not apply
1496-to the selling price of property transferred as an incident to
1497-the sale of service on or after July 1, 2003 and on or before
1498-December 31, 2028 but applies to 100% of the selling price
1499-thereafter.
1500-With respect to biodiesel blends, as defined in the Use
1501-Tax Act, with no less than 1% and no more than 10% biodiesel,
1502-the tax imposed by this Act applies to (i) 80% of the selling
1503-price of property transferred as an incident to the sale of
1504-service on or after July 1, 2003 and on or before December 31,
1505-2018 and (ii) 100% of the proceeds of the selling price after
1506-December 31, 2018 and before January 1, 2024. On and after
1507-January 1, 2024 and on or before December 31, 2030, the
1508-taxation of biodiesel, renewable diesel, and biodiesel blends
1509-shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1510-at any time, however, the tax under this Act on sales of
1511-
1512-
1513-biodiesel blends, as defined in the Use Tax Act, with no less
1514-than 1% and no more than 10% biodiesel is imposed at the rate
1515-of 1.25%, then the tax imposed by this Act applies to 100% of
1516-the proceeds of sales of biodiesel blends with no less than 1%
1517-and no more than 10% biodiesel made during that time.
1518-With respect to biodiesel, as defined in the Use Tax Act,
1519-and biodiesel blends, as defined in the Use Tax Act, with more
1520-than 10% but no more than 99% biodiesel, the tax imposed by
1521-this Act does not apply to the proceeds of the selling price of
1522-property transferred as an incident to the sale of service on
1523-or after July 1, 2003 and on or before December 31, 2023. On
1524-and after January 1, 2024 and on or before December 31, 2030,
1525-the taxation of biodiesel, renewable diesel, and biodiesel
1526-blends shall be as provided in Section 3-5.1 of the Use Tax
1527-Act.
1528-At the election of any registered serviceman made for each
1529-fiscal year, sales of service in which the aggregate annual
1530-cost price of tangible personal property transferred as an
1531-incident to the sales of service is less than 35%, or 75% in
1532-the case of servicemen transferring prescription drugs or
1533-servicemen engaged in graphic arts production, of the
1534-aggregate annual total gross receipts from all sales of
1535-service, the tax imposed by this Act shall be based on the
1536-serviceman's cost price of the tangible personal property
1537-transferred as an incident to the sale of those services.
1538-Until July 1, 2022 and from beginning again on July 1, 2023
1539-
1540-
1541-through December 31, 2025, the tax shall be imposed at the rate
1542-of 1% on food prepared for immediate consumption and
1543-transferred incident to a sale of service subject to this Act
1544-or the Service Occupation Tax Act by an entity licensed under
1545-the Hospital Licensing Act, the Nursing Home Care Act, the
1546-Assisted Living and Shared Housing Act, the ID/DD Community
1547-Care Act, the MC/DD Act, the Specialized Mental Health
1548-Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1549-an entity that holds a permit issued pursuant to the Life Care
1550-Facilities Act. Until July 1, 2022 and from beginning again on
1551-July 1, 2023 through December 31, 2025, the tax shall also be
1552-imposed at the rate of 1% on food for human consumption that is
1553-to be consumed off the premises where it is sold (other than
1554-alcoholic beverages, food consisting of or infused with adult
1555-use cannabis, soft drinks, and food that has been prepared for
1556-immediate consumption and is not otherwise included in this
1557-paragraph).
1558-Beginning on July 1, 2022 and until July 1, 2023, the tax
1559-shall be imposed at the rate of 0% on food prepared for
1560-immediate consumption and transferred incident to a sale of
1561-service subject to this Act or the Service Occupation Tax Act
1562-by an entity licensed under the Hospital Licensing Act, the
1563-Nursing Home Care Act, the Assisted Living and Shared Housing
1564-Act, the ID/DD Community Care Act, the MC/DD Act, the
1565-Specialized Mental Health Rehabilitation Act of 2013, or the
1566-Child Care Act of 1969, or an entity that holds a permit issued
1567-
1568-
1569-pursuant to the Life Care Facilities Act. Beginning on July 1,
1570-2022 and until July 1, 2023, the tax shall also be imposed at
1571-the rate of 0% on food for human consumption that is to be
1572-consumed off the premises where it is sold (other than
1573-alcoholic beverages, food consisting of or infused with adult
1574-use cannabis, soft drinks, and food that has been prepared for
1575-immediate consumption and is not otherwise included in this
1576-paragraph).
1577-On an after January 1, 2026, food prepared for immediate
1578-consumption and transferred incident to a sale of service
1579-subject to this Act or the Service Occupation Tax Act by an
1580-entity licensed under the Hospital Licensing Act, the Nursing
1581-Home Care Act, the Assisted Living and Shared Housing Act, the
1582-ID/DD Community Care Act, the MC/DD Act, the Specialized
1583-Mental Health Rehabilitation Act of 2013, or the Child Care
1584-Act of 1969, or by an entity that holds a permit issued
1585-pursuant to the Life Care Facilities Act is exempt from the tax
1586-under this Act. On and after January 1, 2026, food for human
1587-consumption that is to be consumed off the premises where it is
1588-sold (other than alcoholic beverages, food consisting of or
1589-infused with adult use cannabis, soft drinks, candy, and food
1590-that has been prepared for immediate consumption and is not
1591-otherwise included in this paragraph) is exempt from the tax
1592-under this Act.
1593-The tax shall also be imposed at the rate of 1% on
1594-prescription and nonprescription medicines, drugs, medical
1595-
1596-
1597-appliances, products classified as Class III medical devices
1598-by the United States Food and Drug Administration that are
1599-used for cancer treatment pursuant to a prescription, as well
1600-as any accessories and components related to those devices,
1601-modifications to a motor vehicle for the purpose of rendering
1602-it usable by a person with a disability, and insulin, blood
1603-sugar testing materials, syringes, and needles used by human
1604-diabetics. For the purposes of this Section, until September
1605-1, 2009: the term "soft drinks" means any complete, finished,
1606-ready-to-use, non-alcoholic drink, whether carbonated or not,
1607-including, but not limited to, soda water, cola, fruit juice,
1608-vegetable juice, carbonated water, and all other preparations
1609-commonly known as soft drinks of whatever kind or description
1610-that are contained in any closed or sealed bottle, can,
1611-carton, or container, regardless of size; but "soft drinks"
1612-does not include coffee, tea, non-carbonated water, infant
1613-formula, milk or milk products as defined in the Grade A
1614-Pasteurized Milk and Milk Products Act, or drinks containing
1615-50% or more natural fruit or vegetable juice.
1616-Notwithstanding any other provisions of this Act,
1617-beginning September 1, 2009, "soft drinks" means non-alcoholic
1618-beverages that contain natural or artificial sweeteners. "Soft
1619-drinks" does not include beverages that contain milk or milk
1620-products, soy, rice or similar milk substitutes, or greater
1621-than 50% of vegetable or fruit juice by volume.
1622-Until August 1, 2009, and notwithstanding any other
1623-
1624-
1625-provisions of this Act, "food for human consumption that is to
1626-be consumed off the premises where it is sold" includes all
1627-food sold through a vending machine, except soft drinks and
1628-food products that are dispensed hot from a vending machine,
1629-regardless of the location of the vending machine. Beginning
1630-August 1, 2009, and notwithstanding any other provisions of
1631-this Act, "food for human consumption that is to be consumed
1632-off the premises where it is sold" includes all food sold
1633-through a vending machine, except soft drinks, candy, and food
1634-products that are dispensed hot from a vending machine,
1635-regardless of the location of the vending machine.
1636-Notwithstanding any other provisions of this Act,
1637-beginning September 1, 2009, "food for human consumption that
1638-is to be consumed off the premises where it is sold" does not
1639-include candy. For purposes of this Section, "candy" means a
1640-preparation of sugar, honey, or other natural or artificial
1641-sweeteners in combination with chocolate, fruits, nuts or
1642-other ingredients or flavorings in the form of bars, drops, or
1643-pieces. "Candy" does not include any preparation that contains
1644-flour or requires refrigeration.
1645-Notwithstanding any other provisions of this Act,
1646-beginning September 1, 2009, "nonprescription medicines and
1647-drugs" does not include grooming and hygiene products. For
1648-purposes of this Section, "grooming and hygiene products"
1649-includes, but is not limited to, soaps and cleaning solutions,
1650-shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1651-
1652-
1653-lotions and screens, unless those products are available by
1654-prescription only, regardless of whether the products meet the
1655-definition of "over-the-counter-drugs". For the purposes of
1656-this paragraph, "over-the-counter-drug" means a drug for human
1657-use that contains a label that identifies the product as a drug
1658-as required by 21 CFR 201.66. The "over-the-counter-drug"
1659-label includes:
1660-(A) a "Drug Facts" panel; or
1661-(B) a statement of the "active ingredient(s)" with a
1662-list of those ingredients contained in the compound,
1663-substance or preparation.
1664-Beginning on January 1, 2014 (the effective date of Public
1665-Act 98-122), "prescription and nonprescription medicines and
1666-drugs" includes medical cannabis purchased from a registered
1667-dispensing organization under the Compassionate Use of Medical
1668-Cannabis Program Act.
1669-As used in this Section, "adult use cannabis" means
1670-cannabis subject to tax under the Cannabis Cultivation
1671-Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1672-and does not include cannabis subject to tax under the
1673-Compassionate Use of Medical Cannabis Program Act.
1674-If the property that is acquired from a serviceman is
1675-acquired outside Illinois and used outside Illinois before
1676-being brought to Illinois for use here and is taxable under
1677-this Act, the "selling price" on which the tax is computed
1678-shall be reduced by an amount that represents a reasonable
1679-
1680-
1681-allowance for depreciation for the period of prior
1682-out-of-state use.
1683-(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
1684-102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
1685-Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
1686-103-154, eff. 6-30-23.)
1687-Section 15. The Service Occupation Tax Act is amended by
1688-changing Sections 3-5 and 3-10 as follows:
1689-(35 ILCS 115/3-5)
1690-Sec. 3-5. Exemptions. The following tangible personal
1691-property is exempt from the tax imposed by this Act:
1692-(1) Personal property sold by a corporation, society,
1693-association, foundation, institution, or organization, other
1694-than a limited liability company, that is organized and
1695-operated as a not-for-profit service enterprise for the
1696-benefit of persons 65 years of age or older if the personal
1697-property was not purchased by the enterprise for the purpose
1698-of resale by the enterprise.
1699-(2) Personal property purchased by a not-for-profit
1700-Illinois county fair association for use in conducting,
1701-operating, or promoting the county fair.
1702-(3) Personal property purchased by any not-for-profit arts
1703-or cultural organization that establishes, by proof required
1704-by the Department by rule, that it has received an exemption
1705-
1706-
1707-under Section 501(c)(3) of the Internal Revenue Code and that
1708-is organized and operated primarily for the presentation or
1709-support of arts or cultural programming, activities, or
1710-services. These organizations include, but are not limited to,
1711-music and dramatic arts organizations such as symphony
1712-orchestras and theatrical groups, arts and cultural service
1713-organizations, local arts councils, visual arts organizations,
1714-and media arts organizations. On and after July 1, 2001 (the
1715-effective date of Public Act 92-35), however, an entity
1716-otherwise eligible for this exemption shall not make tax-free
1717-purchases unless it has an active identification number issued
1718-by the Department.
1719-(4) Legal tender, currency, medallions, or gold or silver
1720-coinage issued by the State of Illinois, the government of the
1721-United States of America, or the government of any foreign
1722-country, and bullion.
1723-(5) Until July 1, 2003 and beginning again on September 1,
1724-2004 through August 30, 2014, graphic arts machinery and
1725-equipment, including repair and replacement parts, both new
1726-and used, and including that manufactured on special order or
1727-purchased for lease, certified by the purchaser to be used
1728-primarily for graphic arts production. Equipment includes
1729-chemicals or chemicals acting as catalysts but only if the
1730-chemicals or chemicals acting as catalysts effect a direct and
1731-immediate change upon a graphic arts product. Beginning on
1732-July 1, 2017, graphic arts machinery and equipment is included
1733-
1734-
1735-in the manufacturing and assembling machinery and equipment
1736-exemption under Section 2 of this Act.
1737-(6) Personal property sold by a teacher-sponsored student
1738-organization affiliated with an elementary or secondary school
1739-located in Illinois.
1740-(7) Farm machinery and equipment, both new and used,
1741-including that manufactured on special order, certified by the
1742-purchaser to be used primarily for production agriculture or
1743-State or federal agricultural programs, including individual
1744-replacement parts for the machinery and equipment, including
1745-machinery and equipment purchased for lease, and including
1746-implements of husbandry defined in Section 1-130 of the
1747-Illinois Vehicle Code, farm machinery and agricultural
1748-chemical and fertilizer spreaders, and nurse wagons required
1749-to be registered under Section 3-809 of the Illinois Vehicle
1750-Code, but excluding other motor vehicles required to be
1751-registered under the Illinois Vehicle Code. Horticultural
1752-polyhouses or hoop houses used for propagating, growing, or
1753-overwintering plants shall be considered farm machinery and
1754-equipment under this item (7). Agricultural chemical tender
1755-tanks and dry boxes shall include units sold separately from a
1756-motor vehicle required to be licensed and units sold mounted
1757-on a motor vehicle required to be licensed if the selling price
1758-of the tender is separately stated.
1759-Farm machinery and equipment shall include precision
1760-farming equipment that is installed or purchased to be
1761-
1762-
1763-installed on farm machinery and equipment, including, but not
1764-limited to, tractors, harvesters, sprayers, planters, seeders,
1765-or spreaders. Precision farming equipment includes, but is not
1766-limited to, soil testing sensors, computers, monitors,
1767-software, global positioning and mapping systems, and other
1768-such equipment.
1769-Farm machinery and equipment also includes computers,
1770-sensors, software, and related equipment used primarily in the
1771-computer-assisted operation of production agriculture
1772-facilities, equipment, and activities such as, but not limited
1773-to, the collection, monitoring, and correlation of animal and
1774-crop data for the purpose of formulating animal diets and
1775-agricultural chemicals.
1776-Beginning on January 1, 2024, farm machinery and equipment
1777-also includes electrical power generation equipment used
1778-primarily for production agriculture.
1779-This item (7) is exempt from the provisions of Section
1780-3-55.
1781-(8) Until June 30, 2013, fuel and petroleum products sold
1782-to or used by an air common carrier, certified by the carrier
1783-to be used for consumption, shipment, or storage in the
1784-conduct of its business as an air common carrier, for a flight
1785-destined for or returning from a location or locations outside
1786-the United States without regard to previous or subsequent
1787-domestic stopovers.
1788-Beginning July 1, 2013, fuel and petroleum products sold
1789-
1790-
1791-to or used by an air carrier, certified by the carrier to be
1792-used for consumption, shipment, or storage in the conduct of
1793-its business as an air common carrier, for a flight that (i) is
1794-engaged in foreign trade or is engaged in trade between the
1795-United States and any of its possessions and (ii) transports
1796-at least one individual or package for hire from the city of
1797-origination to the city of final destination on the same
1798-aircraft, without regard to a change in the flight number of
1799-that aircraft.
1800-(9) Proceeds of mandatory service charges separately
1801-stated on customers' bills for the purchase and consumption of
1802-food and beverages, to the extent that the proceeds of the
1803-service charge are in fact turned over as tips or as a
1804-substitute for tips to the employees who participate directly
1805-in preparing, serving, hosting or cleaning up the food or
1806-beverage function with respect to which the service charge is
1807-imposed.
1808-(10) Until July 1, 2003, oil field exploration, drilling,
1809-and production equipment, including (i) rigs and parts of
1810-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1811-pipe and tubular goods, including casing and drill strings,
1812-(iii) pumps and pump-jack units, (iv) storage tanks and flow
1813-lines, (v) any individual replacement part for oil field
1814-exploration, drilling, and production equipment, and (vi)
1815-machinery and equipment purchased for lease; but excluding
1816-motor vehicles required to be registered under the Illinois
1817-
1818-
1819-Vehicle Code.
1820-(11) Photoprocessing machinery and equipment, including
1821-repair and replacement parts, both new and used, including
1822-that manufactured on special order, certified by the purchaser
1823-to be used primarily for photoprocessing, and including
1824-photoprocessing machinery and equipment purchased for lease.
1825-(12) Until July 1, 2028, coal and aggregate exploration,
1826-mining, off-highway hauling, processing, maintenance, and
1827-reclamation equipment, including replacement parts and
1828-equipment, and including equipment purchased for lease, but
1829-excluding motor vehicles required to be registered under the
1830-Illinois Vehicle Code. The changes made to this Section by
1831-Public Act 97-767 apply on and after July 1, 2003, but no claim
1832-for credit or refund is allowed on or after August 16, 2013
1833-(the effective date of Public Act 98-456) for such taxes paid
1834-during the period beginning July 1, 2003 and ending on August
1835-16, 2013 (the effective date of Public Act 98-456).
1836-(13) Beginning January 1, 1992 and through June 30, 2016,
1837-food for human consumption that is to be consumed off the
1838-premises where it is sold (other than alcoholic beverages,
1839-soft drinks and food that has been prepared for immediate
1840-consumption) and prescription and non-prescription medicines,
1841-drugs, medical appliances, and insulin, urine testing
1842-materials, syringes, and needles used by diabetics, for human
1843-use, when purchased for use by a person receiving medical
1844-assistance under Article V of the Illinois Public Aid Code who
1845-
1846-
1847-resides in a licensed long-term care facility, as defined in
1848-the Nursing Home Care Act, or in a licensed facility as defined
1849-in the ID/DD Community Care Act, the MC/DD Act, or the
1850-Specialized Mental Health Rehabilitation Act of 2013.
1851-(14) Semen used for artificial insemination of livestock
1852-for direct agricultural production.
1853-(15) Horses, or interests in horses, registered with and
1854-meeting the requirements of any of the Arabian Horse Club
1855-Registry of America, Appaloosa Horse Club, American Quarter
1856-Horse Association, United States Trotting Association, or
1857-Jockey Club, as appropriate, used for purposes of breeding or
1858-racing for prizes. This item (15) is exempt from the
1859-provisions of Section 3-55, and the exemption provided for
1860-under this item (15) applies for all periods beginning May 30,
1861-1995, but no claim for credit or refund is allowed on or after
1862-January 1, 2008 (the effective date of Public Act 95-88) for
1863-such taxes paid during the period beginning May 30, 2000 and
1864-ending on January 1, 2008 (the effective date of Public Act
1865-95-88).
1866-(16) Computers and communications equipment utilized for
1867-any hospital purpose and equipment used in the diagnosis,
1868-analysis, or treatment of hospital patients sold to a lessor
1869-who leases the equipment, under a lease of one year or longer
1870-executed or in effect at the time of the purchase, to a
1871-hospital that has been issued an active tax exemption
1872-identification number by the Department under Section 1g of
1873-
1874-
1875-the Retailers' Occupation Tax Act.
1876-(17) Personal property sold to a lessor who leases the
1877-property, under a lease of one year or longer executed or in
1878-effect at the time of the purchase, to a governmental body that
1879-has been issued an active tax exemption identification number
1880-by the Department under Section 1g of the Retailers'
1881-Occupation Tax Act.
1882-(18) Beginning with taxable years ending on or after
1883-December 31, 1995 and ending with taxable years ending on or
1884-before December 31, 2004, personal property that is donated
1885-for disaster relief to be used in a State or federally declared
1886-disaster area in Illinois or bordering Illinois by a
1887-manufacturer or retailer that is registered in this State to a
1888-corporation, society, association, foundation, or institution
1889-that has been issued a sales tax exemption identification
1890-number by the Department that assists victims of the disaster
1891-who reside within the declared disaster area.
1892-(19) Beginning with taxable years ending on or after
1893-December 31, 1995 and ending with taxable years ending on or
1894-before December 31, 2004, personal property that is used in
1895-the performance of infrastructure repairs in this State,
1896-including, but not limited to, municipal roads and streets,
1897-access roads, bridges, sidewalks, waste disposal systems,
1898-water and sewer line extensions, water distribution and
1899-purification facilities, storm water drainage and retention
1900-facilities, and sewage treatment facilities, resulting from a
1901-
1902-
1903-State or federally declared disaster in Illinois or bordering
1904-Illinois when such repairs are initiated on facilities located
1905-in the declared disaster area within 6 months after the
1906-disaster.
1907-(20) Beginning July 1, 1999, game or game birds sold at a
1908-"game breeding and hunting preserve area" as that term is used
1909-in the Wildlife Code. This paragraph is exempt from the
1910-provisions of Section 3-55.
1911-(21) A motor vehicle, as that term is defined in Section
1912-1-146 of the Illinois Vehicle Code, that is donated to a
1913-corporation, limited liability company, society, association,
1914-foundation, or institution that is determined by the
1915-Department to be organized and operated exclusively for
1916-educational purposes. For purposes of this exemption, "a
1917-corporation, limited liability company, society, association,
1918-foundation, or institution organized and operated exclusively
1919-for educational purposes" means all tax-supported public
1920-schools, private schools that offer systematic instruction in
1921-useful branches of learning by methods common to public
1922-schools and that compare favorably in their scope and
1923-intensity with the course of study presented in tax-supported
1924-schools, and vocational or technical schools or institutes
1925-organized and operated exclusively to provide a course of
1926-study of not less than 6 weeks duration and designed to prepare
1927-individuals to follow a trade or to pursue a manual,
1928-technical, mechanical, industrial, business, or commercial
1929-
1930-
1931-occupation.
1932-(22) Beginning January 1, 2000, personal property,
1933-including food, purchased through fundraising events for the
1934-benefit of a public or private elementary or secondary school,
1935-a group of those schools, or one or more school districts if
1936-the events are sponsored by an entity recognized by the school
1937-district that consists primarily of volunteers and includes
1938-parents and teachers of the school children. This paragraph
1939-does not apply to fundraising events (i) for the benefit of
1940-private home instruction or (ii) for which the fundraising
1941-entity purchases the personal property sold at the events from
1942-another individual or entity that sold the property for the
1943-purpose of resale by the fundraising entity and that profits
1944-from the sale to the fundraising entity. This paragraph is
1945-exempt from the provisions of Section 3-55.
1946-(23) Beginning January 1, 2000 and through December 31,
1947-2001, new or used automatic vending machines that prepare and
1948-serve hot food and beverages, including coffee, soup, and
1949-other items, and replacement parts for these machines.
1950-Beginning January 1, 2002 and through June 30, 2003, machines
1951-and parts for machines used in commercial, coin-operated
1952-amusement and vending business if a use or occupation tax is
1953-paid on the gross receipts derived from the use of the
1954-commercial, coin-operated amusement and vending machines. This
1955-paragraph is exempt from the provisions of Section 3-55.
1956-(24) Beginning on August 2, 2001 (the effective date of
1957-
1958-
1959-Public Act 92-227), computers and communications equipment
1960-utilized for any hospital purpose and equipment used in the
1961-diagnosis, analysis, or treatment of hospital patients sold to
1962-a lessor who leases the equipment, under a lease of one year or
1963-longer executed or in effect at the time of the purchase, to a
1964-hospital that has been issued an active tax exemption
1965-identification number by the Department under Section 1g of
1966-the Retailers' Occupation Tax Act. This paragraph is exempt
1967-from the provisions of Section 3-55.
1968-(25) Beginning on August 2, 2001 (the effective date of
1969-Public Act 92-227), personal property sold to a lessor who
1970-leases the property, under a lease of one year or longer
1971-executed or in effect at the time of the purchase, to a
1972-governmental body that has been issued an active tax exemption
1973-identification number by the Department under Section 1g of
1974-the Retailers' Occupation Tax Act. This paragraph is exempt
1975-from the provisions of Section 3-55.
1976-(26) Beginning on January 1, 2002 and through June 30,
1977-2016, tangible personal property purchased from an Illinois
1978-retailer by a taxpayer engaged in centralized purchasing
1979-activities in Illinois who will, upon receipt of the property
1980-in Illinois, temporarily store the property in Illinois (i)
1981-for the purpose of subsequently transporting it outside this
1982-State for use or consumption thereafter solely outside this
1983-State or (ii) for the purpose of being processed, fabricated,
1984-or manufactured into, attached to, or incorporated into other
1985-
1986-
1987-tangible personal property to be transported outside this
1988-State and thereafter used or consumed solely outside this
1989-State. The Director of Revenue shall, pursuant to rules
1990-adopted in accordance with the Illinois Administrative
1991-Procedure Act, issue a permit to any taxpayer in good standing
1992-with the Department who is eligible for the exemption under
1993-this paragraph (26). The permit issued under this paragraph
1994-(26) shall authorize the holder, to the extent and in the
1995-manner specified in the rules adopted under this Act, to
1996-purchase tangible personal property from a retailer exempt
1997-from the taxes imposed by this Act. Taxpayers shall maintain
1998-all necessary books and records to substantiate the use and
1999-consumption of all such tangible personal property outside of
2000-the State of Illinois.
2001-(27) Beginning January 1, 2008, tangible personal property
2002-used in the construction or maintenance of a community water
2003-supply, as defined under Section 3.145 of the Environmental
2004-Protection Act, that is operated by a not-for-profit
2005-corporation that holds a valid water supply permit issued
2006-under Title IV of the Environmental Protection Act. This
2007-paragraph is exempt from the provisions of Section 3-55.
2008-(28) Tangible personal property sold to a
2009-public-facilities corporation, as described in Section
2010-11-65-10 of the Illinois Municipal Code, for purposes of
2011-constructing or furnishing a municipal convention hall, but
2012-only if the legal title to the municipal convention hall is
2013-
2014-
2015-transferred to the municipality without any further
2016-consideration by or on behalf of the municipality at the time
2017-of the completion of the municipal convention hall or upon the
2018-retirement or redemption of any bonds or other debt
2019-instruments issued by the public-facilities corporation in
2020-connection with the development of the municipal convention
2021-hall. This exemption includes existing public-facilities
2022-corporations as provided in Section 11-65-25 of the Illinois
2023-Municipal Code. This paragraph is exempt from the provisions
2024-of Section 3-55.
2025-(29) Beginning January 1, 2010 and continuing through
2026-December 31, 2029, materials, parts, equipment, components,
2027-and furnishings incorporated into or upon an aircraft as part
2028-of the modification, refurbishment, completion, replacement,
2029-repair, or maintenance of the aircraft. This exemption
2030-includes consumable supplies used in the modification,
2031-refurbishment, completion, replacement, repair, and
2032-maintenance of aircraft. However, until January 1, 2024, this
2033-exemption excludes any materials, parts, equipment,
2034-components, and consumable supplies used in the modification,
2035-replacement, repair, and maintenance of aircraft engines or
2036-power plants, whether such engines or power plants are
2037-installed or uninstalled upon any such aircraft. "Consumable
2038-supplies" include, but are not limited to, adhesive, tape,
2039-sandpaper, general purpose lubricants, cleaning solution,
2040-latex gloves, and protective films.
2041-
2042-
2043-Beginning January 1, 2010 and continuing through December
2044-31, 2023, this exemption applies only to the transfer of
2045-qualifying tangible personal property incident to the
2046-modification, refurbishment, completion, replacement, repair,
2047-or maintenance of an aircraft by persons who (i) hold an Air
2048-Agency Certificate and are empowered to operate an approved
2049-repair station by the Federal Aviation Administration, (ii)
2050-have a Class IV Rating, and (iii) conduct operations in
2051-accordance with Part 145 of the Federal Aviation Regulations.
2052-The exemption does not include aircraft operated by a
2053-commercial air carrier providing scheduled passenger air
2054-service pursuant to authority issued under Part 121 or Part
2055-129 of the Federal Aviation Regulations. From January 1, 2024
2056-through December 31, 2029, this exemption applies only to the
2057-use of qualifying tangible personal property by: (A) persons
2058-who modify, refurbish, complete, repair, replace, or maintain
2059-aircraft and who (i) hold an Air Agency Certificate and are
2060-empowered to operate an approved repair station by the Federal
2061-Aviation Administration, (ii) have a Class IV Rating, and
2062-(iii) conduct operations in accordance with Part 145 of the
2063-Federal Aviation Regulations; and (B) persons who engage in
2064-the modification, replacement, repair, and maintenance of
2065-aircraft engines or power plants without regard to whether or
2066-not those persons meet the qualifications of item (A).
2067-The changes made to this paragraph (29) by Public Act
2068-98-534 are declarative of existing law. It is the intent of the
2069-
2070-
2071-General Assembly that the exemption under this paragraph (29)
2072-applies continuously from January 1, 2010 through December 31,
2073-2024; however, no claim for credit or refund is allowed for
2074-taxes paid as a result of the disallowance of this exemption on
2075-or after January 1, 2015 and prior to February 5, 2020 (the
2076-effective date of Public Act 101-629).
2077-(30) Beginning January 1, 2017 and through December 31,
2078-2026, menstrual pads, tampons, and menstrual cups.
2079-(31) Tangible personal property transferred to a purchaser
2080-who is exempt from tax by operation of federal law. This
2081-paragraph is exempt from the provisions of Section 3-55.
2082-(32) Qualified tangible personal property used in the
2083-construction or operation of a data center that has been
2084-granted a certificate of exemption by the Department of
2085-Commerce and Economic Opportunity, whether that tangible
2086-personal property is purchased by the owner, operator, or
2087-tenant of the data center or by a contractor or subcontractor
2088-of the owner, operator, or tenant. Data centers that would
2089-have qualified for a certificate of exemption prior to January
2090-1, 2020 had Public Act 101-31 been in effect, may apply for and
2091-obtain an exemption for subsequent purchases of computer
2092-equipment or enabling software purchased or leased to upgrade,
2093-supplement, or replace computer equipment or enabling software
2094-purchased or leased in the original investment that would have
2095-qualified.
2096-The Department of Commerce and Economic Opportunity shall
2097-
2098-
2099-grant a certificate of exemption under this item (32) to
2100-qualified data centers as defined by Section 605-1025 of the
2101-Department of Commerce and Economic Opportunity Law of the
2102-Civil Administrative Code of Illinois.
2103-For the purposes of this item (32):
2104-"Data center" means a building or a series of
2105-buildings rehabilitated or constructed to house working
2106-servers in one physical location or multiple sites within
2107-the State of Illinois.
2108-"Qualified tangible personal property" means:
2109-electrical systems and equipment; climate control and
2110-chilling equipment and systems; mechanical systems and
2111-equipment; monitoring and secure systems; emergency
2112-generators; hardware; computers; servers; data storage
2113-devices; network connectivity equipment; racks; cabinets;
2114-telecommunications cabling infrastructure; raised floor
2115-systems; peripheral components or systems; software;
2116-mechanical, electrical, or plumbing systems; battery
2117-systems; cooling systems and towers; temperature control
2118-systems; other cabling; and other data center
2119-infrastructure equipment and systems necessary to operate
2120-qualified tangible personal property, including fixtures;
2121-and component parts of any of the foregoing, including
2122-installation, maintenance, repair, refurbishment, and
2123-replacement of qualified tangible personal property to
2124-generate, transform, transmit, distribute, or manage
2125-
2126-
2127-electricity necessary to operate qualified tangible
2128-personal property; and all other tangible personal
2129-property that is essential to the operations of a computer
2130-data center. The term "qualified tangible personal
2131-property" also includes building materials physically
2132-incorporated into in to the qualifying data center. To
2133-document the exemption allowed under this Section, the
2134-retailer must obtain from the purchaser a copy of the
2135-certificate of eligibility issued by the Department of
2136-Commerce and Economic Opportunity.
2137-This item (32) is exempt from the provisions of Section
2138-3-55.
2139-(33) Beginning July 1, 2022, breast pumps, breast pump
2140-collection and storage supplies, and breast pump kits. This
2141-item (33) is exempt from the provisions of Section 3-55. As
2142-used in this item (33):
2143-"Breast pump" means an electrically controlled or
2144-manually controlled pump device designed or marketed to be
2145-used to express milk from a human breast during lactation,
2146-including the pump device and any battery, AC adapter, or
2147-other power supply unit that is used to power the pump
2148-device and is packaged and sold with the pump device at the
2149-time of sale.
2150-"Breast pump collection and storage supplies" means
2151-items of tangible personal property designed or marketed
2152-to be used in conjunction with a breast pump to collect
2153-
2154-
2155-milk expressed from a human breast and to store collected
2156-milk until it is ready for consumption.
2157-"Breast pump collection and storage supplies"
2158-includes, but is not limited to: breast shields and breast
2159-shield connectors; breast pump tubes and tubing adapters;
2160-breast pump valves and membranes; backflow protectors and
2161-backflow protector adaptors; bottles and bottle caps
2162-specific to the operation of the breast pump; and breast
2163-milk storage bags.
2164-"Breast pump collection and storage supplies" does not
2165-include: (1) bottles and bottle caps not specific to the
2166-operation of the breast pump; (2) breast pump travel bags
2167-and other similar carrying accessories, including ice
2168-packs, labels, and other similar products; (3) breast pump
2169-cleaning supplies; (4) nursing bras, bra pads, breast
2170-shells, and other similar products; and (5) creams,
2171-ointments, and other similar products that relieve
2172-breastfeeding-related symptoms or conditions of the
2173-breasts or nipples, unless sold as part of a breast pump
2174-kit that is pre-packaged by the breast pump manufacturer
2175-or distributor.
2176-"Breast pump kit" means a kit that: (1) contains no
2177-more than a breast pump, breast pump collection and
2178-storage supplies, a rechargeable battery for operating the
2179-breast pump, a breastmilk cooler, bottle stands, ice
2180-packs, and a breast pump carrying case; and (2) is
2181-
2182-
2183-pre-packaged as a breast pump kit by the breast pump
2184-manufacturer or distributor.
2185-(34) Tangible personal property sold by or on behalf of
2186-the State Treasurer pursuant to the Revised Uniform Unclaimed
2187-Property Act. This item (34) is exempt from the provisions of
2188-Section 3-55.
2189-(35) Beginning on January 1, 2024, tangible personal
2190-property purchased by an active duty member of the armed
2191-forces of the United States who presents valid military
2192-identification and purchases the property using a form of
2193-payment where the federal government is the payor. The member
2194-of the armed forces must complete, at the point of sale, a form
2195-prescribed by the Department of Revenue documenting that the
2196-transaction is eligible for the exemption under this
2197-paragraph. Retailers must keep the form as documentation of
2198-the exemption in their records for a period of not less than 6
2199-years. "Armed forces of the United States" means the United
2200-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2201-This paragraph is exempt from the provisions of Section 3-55.
2202-(36) Beginning on January 1, 2026, as further defined in
2203-Section 3-10, food prepared for immediate consumption and
2204-transferred incident to a sale of service subject to this Act
2205-or the Service Use Tax Act by an entity licensed under the
2206-Hospital Licensing Act, the Nursing Home Care Act, the
2207-Assisted Living and Shared Housing Act, the ID/DD Community
2208-Care Act, the MC/DD Act, the Specialized Mental Health
2209-
2210-
2211-Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2212-an entity that holds a permit issued pursuant to the Life Care
2213-Facilities Act. This item (36) is exempt from the provisions
2214-of Section 3-55.
2215-(37) Beginning on January 1, 2026, as further defined in
2216-Section 3-10, food for human consumption that is to be
2217-consumed off the premises where it is sold (other than
2218-alcoholic beverages, food consisting of or infused with adult
2219-use cannabis, soft drinks, candy, and food that has been
2220-prepared for immediate consumption). This item (37) is exempt
2221-from the provisions of Section 3-55.
2222-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2223-Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2224-75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2225-Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2226-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2227-revised 12-12-23.)
2228-(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2229-Sec. 3-10. Rate of tax. Unless otherwise provided in this
2230-Section, the tax imposed by this Act is at the rate of 6.25% of
2231-the "selling price", as defined in Section 2 of the Service Use
2232-Tax Act, of the tangible personal property. For the purpose of
2233-computing this tax, in no event shall the "selling price" be
2234-less than the cost price to the serviceman of the tangible
2235-personal property transferred. The selling price of each item
2236-
2237-
2238-of tangible personal property transferred as an incident of a
2239-sale of service may be shown as a distinct and separate item on
2240-the serviceman's billing to the service customer. If the
2241-selling price is not so shown, the selling price of the
2242-tangible personal property is deemed to be 50% of the
2243-serviceman's entire billing to the service customer. When,
2244-however, a serviceman contracts to design, develop, and
2245-produce special order machinery or equipment, the tax imposed
2246-by this Act shall be based on the serviceman's cost price of
2247-the tangible personal property transferred incident to the
2248-completion of the contract.
2249-Beginning on July 1, 2000 and through December 31, 2000,
2250-with respect to motor fuel, as defined in Section 1.1 of the
2251-Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2252-the Use Tax Act, the tax is imposed at the rate of 1.25%.
2253-With respect to gasohol, as defined in the Use Tax Act, the
2254-tax imposed by this Act shall apply to (i) 70% of the cost
2255-price of property transferred as an incident to the sale of
2256-service on or after January 1, 1990, and before July 1, 2003,
2257-(ii) 80% of the selling price of property transferred as an
2258-incident to the sale of service on or after July 1, 2003 and on
2259-or before July 1, 2017, (iii) 100% of the selling price of
2260-property transferred as an incident to the sale of service
2261-after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
2262-the selling price of property transferred as an incident to
2263-the sale of service on or after January 1, 2024 and on or
2264-
2265-
2266-before December 31, 2028, and (v) 100% of the selling price of
2267-property transferred as an incident to the sale of service
2268-after December 31, 2028. If, at any time, however, the tax
2269-under this Act on sales of gasohol, as defined in the Use Tax
2270-Act, is imposed at the rate of 1.25%, then the tax imposed by
2271-this Act applies to 100% of the proceeds of sales of gasohol
2272-made during that time.
2273-With respect to mid-range ethanol blends, as defined in
2274-Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2275-applies to (i) 80% of the selling price of property
2276-transferred as an incident to the sale of service on or after
2277-January 1, 2024 and on or before December 31, 2028 and (ii)
2278-100% of the selling price of property transferred as an
2279-incident to the sale of service after December 31, 2028. If, at
2280-any time, however, the tax under this Act on sales of mid-range
2281-ethanol blends is imposed at the rate of 1.25%, then the tax
2282-imposed by this Act applies to 100% of the selling price of
2283-mid-range ethanol blends transferred as an incident to the
2284-sale of service during that time.
2285-With respect to majority blended ethanol fuel, as defined
2286-in the Use Tax Act, the tax imposed by this Act does not apply
2287-to the selling price of property transferred as an incident to
2288-the sale of service on or after July 1, 2003 and on or before
2289-December 31, 2028 but applies to 100% of the selling price
2290-thereafter.
2291-With respect to biodiesel blends, as defined in the Use
2292-
2293-
2294-Tax Act, with no less than 1% and no more than 10% biodiesel,
2295-the tax imposed by this Act applies to (i) 80% of the selling
2296-price of property transferred as an incident to the sale of
2297-service on or after July 1, 2003 and on or before December 31,
2298-2018 and (ii) 100% of the proceeds of the selling price after
2299-December 31, 2018 and before January 1, 2024. On and after
2300-January 1, 2024 and on or before December 31, 2030, the
2301-taxation of biodiesel, renewable diesel, and biodiesel blends
2302-shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2303-at any time, however, the tax under this Act on sales of
2304-biodiesel blends, as defined in the Use Tax Act, with no less
2305-than 1% and no more than 10% biodiesel is imposed at the rate
2306-of 1.25%, then the tax imposed by this Act applies to 100% of
2307-the proceeds of sales of biodiesel blends with no less than 1%
2308-and no more than 10% biodiesel made during that time.
2309-With respect to biodiesel, as defined in the Use Tax Act,
2310-and biodiesel blends, as defined in the Use Tax Act, with more
2311-than 10% but no more than 99% biodiesel material, the tax
2312-imposed by this Act does not apply to the proceeds of the
2313-selling price of property transferred as an incident to the
2314-sale of service on or after July 1, 2003 and on or before
2315-December 31, 2023. On and after January 1, 2024 and on or
2316-before December 31, 2030, the taxation of biodiesel, renewable
2317-diesel, and biodiesel blends shall be as provided in Section
2318-3-5.1 of the Use Tax Act.
2319-At the election of any registered serviceman made for each
2320-
2321-
2322-fiscal year, sales of service in which the aggregate annual
2323-cost price of tangible personal property transferred as an
2324-incident to the sales of service is less than 35%, or 75% in
2325-the case of servicemen transferring prescription drugs or
2326-servicemen engaged in graphic arts production, of the
2327-aggregate annual total gross receipts from all sales of
2328-service, the tax imposed by this Act shall be based on the
2329-serviceman's cost price of the tangible personal property
2330-transferred incident to the sale of those services.
2331-Until July 1, 2022 and from beginning again on July 1, 2023
2332-through December 31, 2025, the tax shall be imposed at the rate
2333-of 1% on food prepared for immediate consumption and
2334-transferred incident to a sale of service subject to this Act
2335-or the Service Use Tax Act by an entity licensed under the
2336-Hospital Licensing Act, the Nursing Home Care Act, the
2337-Assisted Living and Shared Housing Act, the ID/DD Community
2338-Care Act, the MC/DD Act, the Specialized Mental Health
2339-Rehabilitation Act of 2013, or the Child Care Act of 1969, or
2340-an entity that holds a permit issued pursuant to the Life Care
2341-Facilities Act. Until July 1, 2022 and from beginning again on
2342-July 1, 2023 through December 31, 2025, the tax shall also be
2343-imposed at the rate of 1% on food for human consumption that is
2344-to be consumed off the premises where it is sold (other than
2345-alcoholic beverages, food consisting of or infused with adult
2346-use cannabis, soft drinks, and food that has been prepared for
2347-immediate consumption and is not otherwise included in this
2348-
2349-
2350-paragraph).
2351-Beginning on July 1, 2022 and until July 1, 2023, the tax
2352-shall be imposed at the rate of 0% on food prepared for
2353-immediate consumption and transferred incident to a sale of
2354-service subject to this Act or the Service Use Tax Act by an
2355-entity licensed under the Hospital Licensing Act, the Nursing
2356-Home Care Act, the Assisted Living and Shared Housing Act, the
2357-ID/DD Community Care Act, the MC/DD Act, the Specialized
2358-Mental Health Rehabilitation Act of 2013, or the Child Care
2359-Act of 1969, or an entity that holds a permit issued pursuant
2360-to the Life Care Facilities Act. Beginning July 1, 2022 and
2361-until July 1, 2023, the tax shall also be imposed at the rate
2362-of 0% on food for human consumption that is to be consumed off
2363-the premises where it is sold (other than alcoholic beverages,
2364-food consisting of or infused with adult use cannabis, soft
2365-drinks, and food that has been prepared for immediate
2366-consumption and is not otherwise included in this paragraph).
2367-On and after January 1, 2026, food prepared for immediate
2368-consumption and transferred incident to a sale of service
2369-subject to this Act or the Service Use Tax Act by an entity
2370-licensed under the Hospital Licensing Act, the Nursing Home
2371-Care Act, the Assisted Living and Shared Housing Act, the
2372-ID/DD Community Care Act, the MC/DD Act, the Specialized
2373-Mental Health Rehabilitation Act of 2013, or the Child Care
2374-Act of 1969, or an entity that holds a permit issued pursuant
2375-to the Life Care Facilities Act is exempt from the tax imposed
2376-
2377-
2378-by this Act. On and after January 1, 2026, food for human
2379-consumption that is to be consumed off the premises where it is
2380-sold (other than alcoholic beverages, food consisting of or
2381-infused with adult use cannabis, soft drinks, candy, and food
2382-that has been prepared for immediate consumption and is not
2383-otherwise included in this paragraph) is exempt from the tax
2384-imposed by this Act.
2385-The tax shall also be imposed at the rate of 1% on
2386-prescription and nonprescription medicines, drugs, medical
2387-appliances, products classified as Class III medical devices
2388-by the United States Food and Drug Administration that are
2389-used for cancer treatment pursuant to a prescription, as well
2390-as any accessories and components related to those devices,
2391-modifications to a motor vehicle for the purpose of rendering
2392-it usable by a person with a disability, and insulin, blood
2393-sugar testing materials, syringes, and needles used by human
2394-diabetics. For the purposes of this Section, until September
2395-1, 2009: the term "soft drinks" means any complete, finished,
2396-ready-to-use, non-alcoholic drink, whether carbonated or not,
2397-including, but not limited to, soda water, cola, fruit juice,
2398-vegetable juice, carbonated water, and all other preparations
2399-commonly known as soft drinks of whatever kind or description
2400-that are contained in any closed or sealed can, carton, or
2401-container, regardless of size; but "soft drinks" does not
2402-include coffee, tea, non-carbonated water, infant formula,
2403-milk or milk products as defined in the Grade A Pasteurized
2404-
2405-
2406-Milk and Milk Products Act, or drinks containing 50% or more
2407-natural fruit or vegetable juice.
2408-Notwithstanding any other provisions of this Act,
2409-beginning September 1, 2009, "soft drinks" means non-alcoholic
2410-beverages that contain natural or artificial sweeteners. "Soft
2411-drinks" does not include beverages that contain milk or milk
2412-products, soy, rice or similar milk substitutes, or greater
2413-than 50% of vegetable or fruit juice by volume.
2414-Until August 1, 2009, and notwithstanding any other
2415-provisions of this Act, "food for human consumption that is to
2416-be consumed off the premises where it is sold" includes all
2417-food sold through a vending machine, except soft drinks and
2418-food products that are dispensed hot from a vending machine,
2419-regardless of the location of the vending machine. Beginning
2420-August 1, 2009, and notwithstanding any other provisions of
2421-this Act, "food for human consumption that is to be consumed
2422-off the premises where it is sold" includes all food sold
2423-through a vending machine, except soft drinks, candy, and food
2424-products that are dispensed hot from a vending machine,
2425-regardless of the location of the vending machine.
2426-Notwithstanding any other provisions of this Act,
2427-beginning September 1, 2009, "food for human consumption that
2428-is to be consumed off the premises where it is sold" does not
2429-include candy. For purposes of this Section, "candy" means a
2430-preparation of sugar, honey, or other natural or artificial
2431-sweeteners in combination with chocolate, fruits, nuts or
2432-
2433-
2434-other ingredients or flavorings in the form of bars, drops, or
2435-pieces. "Candy" does not include any preparation that contains
2436-flour or requires refrigeration.
2437-Notwithstanding any other provisions of this Act,
2438-beginning September 1, 2009, "nonprescription medicines and
2439-drugs" does not include grooming and hygiene products. For
2440-purposes of this Section, "grooming and hygiene products"
2441-includes, but is not limited to, soaps and cleaning solutions,
2442-shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2443-lotions and screens, unless those products are available by
2444-prescription only, regardless of whether the products meet the
2445-definition of "over-the-counter-drugs". For the purposes of
2446-this paragraph, "over-the-counter-drug" means a drug for human
2447-use that contains a label that identifies the product as a drug
2448-as required by 21 CFR 201.66. The "over-the-counter-drug"
2449-label includes:
2450-(A) a "Drug Facts" panel; or
2451-(B) a statement of the "active ingredient(s)" with a
2452-list of those ingredients contained in the compound,
2453-substance or preparation.
2454-Beginning on January 1, 2014 (the effective date of Public
2455-Act 98-122), "prescription and nonprescription medicines and
2456-drugs" includes medical cannabis purchased from a registered
2457-dispensing organization under the Compassionate Use of Medical
2458-Cannabis Program Act.
2459-As used in this Section, "adult use cannabis" means
2460-
2461-
2462-cannabis subject to tax under the Cannabis Cultivation
2463-Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2464-and does not include cannabis subject to tax under the
2465-Compassionate Use of Medical Cannabis Program Act.
2466-(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
2467-102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
2468-Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
2469-103-154, eff. 6-30-23.)
2470-Section 20. The Retailers' Occupation Tax Act is amended
2471-by changing Sections 2-5, 2-10, and 2-27 as follows:
2472-(35 ILCS 120/2-5)
2473-Sec. 2-5. Exemptions. Gross receipts from proceeds from
2474-the sale of the following tangible personal property are
2475-exempt from the tax imposed by this Act:
2476-(1) Farm chemicals.
2477-(2) Farm machinery and equipment, both new and used,
2478-including that manufactured on special order, certified by
2479-the purchaser to be used primarily for production
2480-agriculture or State or federal agricultural programs,
2481-including individual replacement parts for the machinery
2482-and equipment, including machinery and equipment purchased
2483-for lease, and including implements of husbandry defined
2484-in Section 1-130 of the Illinois Vehicle Code, farm
2485-machinery and agricultural chemical and fertilizer
2486-
2487-
2488-spreaders, and nurse wagons required to be registered
2489-under Section 3-809 of the Illinois Vehicle Code, but
2490-excluding other motor vehicles required to be registered
2491-under the Illinois Vehicle Code. Horticultural polyhouses
2492-or hoop houses used for propagating, growing, or
2493-overwintering plants shall be considered farm machinery
2494-and equipment under this item (2). Agricultural chemical
2495-tender tanks and dry boxes shall include units sold
2496-separately from a motor vehicle required to be licensed
2497-and units sold mounted on a motor vehicle required to be
2498-licensed, if the selling price of the tender is separately
2499-stated.
2500-Farm machinery and equipment shall include precision
2501-farming equipment that is installed or purchased to be
2502-installed on farm machinery and equipment including, but
2503-not limited to, tractors, harvesters, sprayers, planters,
2504-seeders, or spreaders. Precision farming equipment
2505-includes, but is not limited to, soil testing sensors,
2506-computers, monitors, software, global positioning and
2507-mapping systems, and other such equipment.
2508-Farm machinery and equipment also includes computers,
2509-sensors, software, and related equipment used primarily in
2510-the computer-assisted operation of production agriculture
2511-facilities, equipment, and activities such as, but not
2512-limited to, the collection, monitoring, and correlation of
2513-animal and crop data for the purpose of formulating animal
2514-
2515-
2516-diets and agricultural chemicals.
2517-Beginning on January 1, 2024, farm machinery and
2518-equipment also includes electrical power generation
2519-equipment used primarily for production agriculture.
2520-This item (2) is exempt from the provisions of Section
2521-2-70.
2522-(3) Until July 1, 2003, distillation machinery and
2523-equipment, sold as a unit or kit, assembled or installed
2524-by the retailer, certified by the user to be used only for
2525-the production of ethyl alcohol that will be used for
2526-consumption as motor fuel or as a component of motor fuel
2527-for the personal use of the user, and not subject to sale
2528-or resale.
2529-(4) Until July 1, 2003 and beginning again September
2530-1, 2004 through August 30, 2014, graphic arts machinery
2531-and equipment, including repair and replacement parts,
2532-both new and used, and including that manufactured on
2533-special order or purchased for lease, certified by the
2534-purchaser to be used primarily for graphic arts
2535-production. Equipment includes chemicals or chemicals
2536-acting as catalysts but only if the chemicals or chemicals
2537-acting as catalysts effect a direct and immediate change
2538-upon a graphic arts product. Beginning on July 1, 2017,
2539-graphic arts machinery and equipment is included in the
2540-manufacturing and assembling machinery and equipment
2541-exemption under paragraph (14).
2542-
2543-
2544-(5) A motor vehicle that is used for automobile
2545-renting, as defined in the Automobile Renting Occupation
2546-and Use Tax Act. This paragraph is exempt from the
2547-provisions of Section 2-70.
2548-(6) Personal property sold by a teacher-sponsored
2549-student organization affiliated with an elementary or
2550-secondary school located in Illinois.
2551-(7) Until July 1, 2003, proceeds of that portion of
2552-the selling price of a passenger car the sale of which is
2553-subject to the Replacement Vehicle Tax.
2554-(8) Personal property sold to an Illinois county fair
2555-association for use in conducting, operating, or promoting
2556-the county fair.
2557-(9) Personal property sold to a not-for-profit arts or
2558-cultural organization that establishes, by proof required
2559-by the Department by rule, that it has received an
2560-exemption under Section 501(c)(3) of the Internal Revenue
2561-Code and that is organized and operated primarily for the
2562-presentation or support of arts or cultural programming,
2563-activities, or services. These organizations include, but
2564-are not limited to, music and dramatic arts organizations
2565-such as symphony orchestras and theatrical groups, arts
2566-and cultural service organizations, local arts councils,
2567-visual arts organizations, and media arts organizations.
2568-On and after July 1, 2001 (the effective date of Public Act
2569-92-35), however, an entity otherwise eligible for this
2570-
2571-
2572-exemption shall not make tax-free purchases unless it has
2573-an active identification number issued by the Department.
2574-(10) Personal property sold by a corporation, society,
2575-association, foundation, institution, or organization,
2576-other than a limited liability company, that is organized
2577-and operated as a not-for-profit service enterprise for
2578-the benefit of persons 65 years of age or older if the
2579-personal property was not purchased by the enterprise for
2580-the purpose of resale by the enterprise.
2581-(11) Except as otherwise provided in this Section,
2582-personal property sold to a governmental body, to a
2583-corporation, society, association, foundation, or
2584-institution organized and operated exclusively for
2585-charitable, religious, or educational purposes, or to a
2586-not-for-profit corporation, society, association,
2587-foundation, institution, or organization that has no
2588-compensated officers or employees and that is organized
2589-and operated primarily for the recreation of persons 55
2590-years of age or older. A limited liability company may
2591-qualify for the exemption under this paragraph only if the
2592-limited liability company is organized and operated
2593-exclusively for educational purposes. On and after July 1,
2594-1987, however, no entity otherwise eligible for this
2595-exemption shall make tax-free purchases unless it has an
2596-active identification number issued by the Department.
2597-(12) (Blank).
2598-
2599-
2600-(12-5) On and after July 1, 2003 and through June 30,
2601-2004, motor vehicles of the second division with a gross
2602-vehicle weight in excess of 8,000 pounds that are subject
2603-to the commercial distribution fee imposed under Section
2604-3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2605-2004 and through June 30, 2005, the use in this State of
2606-motor vehicles of the second division: (i) with a gross
2607-vehicle weight rating in excess of 8,000 pounds; (ii) that
2608-are subject to the commercial distribution fee imposed
2609-under Section 3-815.1 of the Illinois Vehicle Code; and
2610-(iii) that are primarily used for commercial purposes.
2611-Through June 30, 2005, this exemption applies to repair
2612-and replacement parts added after the initial purchase of
2613-such a motor vehicle if that motor vehicle is used in a
2614-manner that would qualify for the rolling stock exemption
2615-otherwise provided for in this Act. For purposes of this
2616-paragraph, "used for commercial purposes" means the
2617-transportation of persons or property in furtherance of
2618-any commercial or industrial enterprise whether for-hire
2619-or not.
2620-(13) Proceeds from sales to owners, lessors, or
2621-shippers of tangible personal property that is utilized by
2622-interstate carriers for hire for use as rolling stock
2623-moving in interstate commerce and equipment operated by a
2624-telecommunications provider, licensed as a common carrier
2625-by the Federal Communications Commission, which is
2626-
2627-
2628-permanently installed in or affixed to aircraft moving in
2629-interstate commerce.
2630-(14) Machinery and equipment that will be used by the
2631-purchaser, or a lessee of the purchaser, primarily in the
2632-process of manufacturing or assembling tangible personal
2633-property for wholesale or retail sale or lease, whether
2634-the sale or lease is made directly by the manufacturer or
2635-by some other person, whether the materials used in the
2636-process are owned by the manufacturer or some other
2637-person, or whether the sale or lease is made apart from or
2638-as an incident to the seller's engaging in the service
2639-occupation of producing machines, tools, dies, jigs,
2640-patterns, gauges, or other similar items of no commercial
2641-value on special order for a particular purchaser. The
2642-exemption provided by this paragraph (14) does not include
2643-machinery and equipment used in (i) the generation of
2644-electricity for wholesale or retail sale; (ii) the
2645-generation or treatment of natural or artificial gas for
2646-wholesale or retail sale that is delivered to customers
2647-through pipes, pipelines, or mains; or (iii) the treatment
2648-of water for wholesale or retail sale that is delivered to
2649-customers through pipes, pipelines, or mains. The
2650-provisions of Public Act 98-583 are declaratory of
2651-existing law as to the meaning and scope of this
2652-exemption. Beginning on July 1, 2017, the exemption
2653-provided by this paragraph (14) includes, but is not
2654-
2655-
2656-limited to, graphic arts machinery and equipment, as
2657-defined in paragraph (4) of this Section.
2658-(15) Proceeds of mandatory service charges separately
2659-stated on customers' bills for purchase and consumption of
2660-food and beverages, to the extent that the proceeds of the
2661-service charge are in fact turned over as tips or as a
2662-substitute for tips to the employees who participate
2663-directly in preparing, serving, hosting or cleaning up the
2664-food or beverage function with respect to which the
2665-service charge is imposed.
2666-(16) Tangible personal property sold to a purchaser if
2667-the purchaser is exempt from use tax by operation of
2668-federal law. This paragraph is exempt from the provisions
2669-of Section 2-70.
2670-(17) Tangible personal property sold to a common
2671-carrier by rail or motor that receives the physical
2672-possession of the property in Illinois and that transports
2673-the property, or shares with another common carrier in the
2674-transportation of the property, out of Illinois on a
2675-standard uniform bill of lading showing the seller of the
2676-property as the shipper or consignor of the property to a
2677-destination outside Illinois, for use outside Illinois.
2678-(18) Legal tender, currency, medallions, or gold or
2679-silver coinage issued by the State of Illinois, the
2680-government of the United States of America, or the
2681-government of any foreign country, and bullion.
2682-
2683-
2684-(19) Until July 1, 2003, oil field exploration,
2685-drilling, and production equipment, including (i) rigs and
2686-parts of rigs, rotary rigs, cable tool rigs, and workover
2687-rigs, (ii) pipe and tubular goods, including casing and
2688-drill strings, (iii) pumps and pump-jack units, (iv)
2689-storage tanks and flow lines, (v) any individual
2690-replacement part for oil field exploration, drilling, and
2691-production equipment, and (vi) machinery and equipment
2692-purchased for lease; but excluding motor vehicles required
2693-to be registered under the Illinois Vehicle Code.
2694-(20) Photoprocessing machinery and equipment,
2695-including repair and replacement parts, both new and used,
2696-including that manufactured on special order, certified by
2697-the purchaser to be used primarily for photoprocessing,
2698-and including photoprocessing machinery and equipment
2699-purchased for lease.
2700-(21) Until July 1, 2028, coal and aggregate
2701-exploration, mining, off-highway hauling, processing,
2702-maintenance, and reclamation equipment, including
2703-replacement parts and equipment, and including equipment
2704-purchased for lease, but excluding motor vehicles required
2705-to be registered under the Illinois Vehicle Code. The
2706-changes made to this Section by Public Act 97-767 apply on
2707-and after July 1, 2003, but no claim for credit or refund
2708-is allowed on or after August 16, 2013 (the effective date
2709-of Public Act 98-456) for such taxes paid during the
2710-
2711-
2712-period beginning July 1, 2003 and ending on August 16,
2713-2013 (the effective date of Public Act 98-456).
2714-(22) Until June 30, 2013, fuel and petroleum products
2715-sold to or used by an air carrier, certified by the carrier
2716-to be used for consumption, shipment, or storage in the
2717-conduct of its business as an air common carrier, for a
2718-flight destined for or returning from a location or
2719-locations outside the United States without regard to
2720-previous or subsequent domestic stopovers.
2721-Beginning July 1, 2013, fuel and petroleum products
2722-sold to or used by an air carrier, certified by the carrier
2723-to be used for consumption, shipment, or storage in the
2724-conduct of its business as an air common carrier, for a
2725-flight that (i) is engaged in foreign trade or is engaged
2726-in trade between the United States and any of its
2727-possessions and (ii) transports at least one individual or
2728-package for hire from the city of origination to the city
2729-of final destination on the same aircraft, without regard
2730-to a change in the flight number of that aircraft.
2731-(23) A transaction in which the purchase order is
2732-received by a florist who is located outside Illinois, but
2733-who has a florist located in Illinois deliver the property
2734-to the purchaser or the purchaser's donee in Illinois.
2735-(24) Fuel consumed or used in the operation of ships,
2736-barges, or vessels that are used primarily in or for the
2737-transportation of property or the conveyance of persons
2738-
2739-
2740-for hire on rivers bordering on this State if the fuel is
2741-delivered by the seller to the purchaser's barge, ship, or
2742-vessel while it is afloat upon that bordering river.
2743-(25) Except as provided in item (25-5) of this
2744-Section, a motor vehicle sold in this State to a
2745-nonresident even though the motor vehicle is delivered to
2746-the nonresident in this State, if the motor vehicle is not
2747-to be titled in this State, and if a drive-away permit is
2748-issued to the motor vehicle as provided in Section 3-603
2749-of the Illinois Vehicle Code or if the nonresident
2750-purchaser has vehicle registration plates to transfer to
2751-the motor vehicle upon returning to his or her home state.
2752-The issuance of the drive-away permit or having the
2753-out-of-state registration plates to be transferred is
2754-prima facie evidence that the motor vehicle will not be
2755-titled in this State.
2756-(25-5) The exemption under item (25) does not apply if
2757-the state in which the motor vehicle will be titled does
2758-not allow a reciprocal exemption for a motor vehicle sold
2759-and delivered in that state to an Illinois resident but
2760-titled in Illinois. The tax collected under this Act on
2761-the sale of a motor vehicle in this State to a resident of
2762-another state that does not allow a reciprocal exemption
2763-shall be imposed at a rate equal to the state's rate of tax
2764-on taxable property in the state in which the purchaser is
2765-a resident, except that the tax shall not exceed the tax
2766-
2767-
2768-that would otherwise be imposed under this Act. At the
2769-time of the sale, the purchaser shall execute a statement,
2770-signed under penalty of perjury, of his or her intent to
2771-title the vehicle in the state in which the purchaser is a
2772-resident within 30 days after the sale and of the fact of
2773-the payment to the State of Illinois of tax in an amount
2774-equivalent to the state's rate of tax on taxable property
2775-in his or her state of residence and shall submit the
2776-statement to the appropriate tax collection agency in his
2777-or her state of residence. In addition, the retailer must
2778-retain a signed copy of the statement in his or her
2779-records. Nothing in this item shall be construed to
2780-require the removal of the vehicle from this state
2781-following the filing of an intent to title the vehicle in
2782-the purchaser's state of residence if the purchaser titles
2783-the vehicle in his or her state of residence within 30 days
2784-after the date of sale. The tax collected under this Act in
2785-accordance with this item (25-5) shall be proportionately
2786-distributed as if the tax were collected at the 6.25%
2787-general rate imposed under this Act.
2788-(25-7) Beginning on July 1, 2007, no tax is imposed
2789-under this Act on the sale of an aircraft, as defined in
2790-Section 3 of the Illinois Aeronautics Act, if all of the
2791-following conditions are met:
2792-(1) the aircraft leaves this State within 15 days
2793-after the later of either the issuance of the final
2794-
2795-
2796-billing for the sale of the aircraft, or the
2797-authorized approval for return to service, completion
2798-of the maintenance record entry, and completion of the
2799-test flight and ground test for inspection, as
2800-required by 14 CFR 91.407;
2801-(2) the aircraft is not based or registered in
2802-this State after the sale of the aircraft; and
2803-(3) the seller retains in his or her books and
2804-records and provides to the Department a signed and
2805-dated certification from the purchaser, on a form
2806-prescribed by the Department, certifying that the
2807-requirements of this item (25-7) are met. The
2808-certificate must also include the name and address of
2809-the purchaser, the address of the location where the
2810-aircraft is to be titled or registered, the address of
2811-the primary physical location of the aircraft, and
2812-other information that the Department may reasonably
2813-require.
2814-For purposes of this item (25-7):
2815-"Based in this State" means hangared, stored, or
2816-otherwise used, excluding post-sale customizations as
2817-defined in this Section, for 10 or more days in each
2818-12-month period immediately following the date of the sale
2819-of the aircraft.
2820-"Registered in this State" means an aircraft
2821-registered with the Department of Transportation,
2822-
2823-
2824-Aeronautics Division, or titled or registered with the
2825-Federal Aviation Administration to an address located in
2826-this State.
2827-This paragraph (25-7) is exempt from the provisions of
2828-Section 2-70.
2829-(26) Semen used for artificial insemination of
2830-livestock for direct agricultural production.
2831-(27) Horses, or interests in horses, registered with
2832-and meeting the requirements of any of the Arabian Horse
2833-Club Registry of America, Appaloosa Horse Club, American
2834-Quarter Horse Association, United States Trotting
2835-Association, or Jockey Club, as appropriate, used for
2836-purposes of breeding or racing for prizes. This item (27)
2837-is exempt from the provisions of Section 2-70, and the
2838-exemption provided for under this item (27) applies for
2839-all periods beginning May 30, 1995, but no claim for
2840-credit or refund is allowed on or after January 1, 2008
2841-(the effective date of Public Act 95-88) for such taxes
2842-paid during the period beginning May 30, 2000 and ending
2843-on January 1, 2008 (the effective date of Public Act
2844-95-88).
2845-(28) Computers and communications equipment utilized
2846-for any hospital purpose and equipment used in the
2847-diagnosis, analysis, or treatment of hospital patients
2848-sold to a lessor who leases the equipment, under a lease of
2849-one year or longer executed or in effect at the time of the
2850-
2851-
2852-purchase, to a hospital that has been issued an active tax
2853-exemption identification number by the Department under
2854-Section 1g of this Act.
2855-(29) Personal property sold to a lessor who leases the
2856-property, under a lease of one year or longer executed or
2857-in effect at the time of the purchase, to a governmental
2858-body that has been issued an active tax exemption
2859-identification number by the Department under Section 1g
2860-of this Act.
2861-(30) Beginning with taxable years ending on or after
2862-December 31, 1995 and ending with taxable years ending on
2863-or before December 31, 2004, personal property that is
2864-donated for disaster relief to be used in a State or
2865-federally declared disaster area in Illinois or bordering
2866-Illinois by a manufacturer or retailer that is registered
2867-in this State to a corporation, society, association,
2868-foundation, or institution that has been issued a sales
2869-tax exemption identification number by the Department that
2870-assists victims of the disaster who reside within the
2871-declared disaster area.
2872-(31) Beginning with taxable years ending on or after
2873-December 31, 1995 and ending with taxable years ending on
2874-or before December 31, 2004, personal property that is
2875-used in the performance of infrastructure repairs in this
2876-State, including, but not limited to, municipal roads and
2877-streets, access roads, bridges, sidewalks, waste disposal
2878-
2879-
2880-systems, water and sewer line extensions, water
2881-distribution and purification facilities, storm water
2882-drainage and retention facilities, and sewage treatment
2883-facilities, resulting from a State or federally declared
2884-disaster in Illinois or bordering Illinois when such
2885-repairs are initiated on facilities located in the
2886-declared disaster area within 6 months after the disaster.
2887-(32) Beginning July 1, 1999, game or game birds sold
2888-at a "game breeding and hunting preserve area" as that
2889-term is used in the Wildlife Code. This paragraph is
2890-exempt from the provisions of Section 2-70.
2891-(33) A motor vehicle, as that term is defined in
2892-Section 1-146 of the Illinois Vehicle Code, that is
2893-donated to a corporation, limited liability company,
2894-society, association, foundation, or institution that is
2895-determined by the Department to be organized and operated
2896-exclusively for educational purposes. For purposes of this
2897-exemption, "a corporation, limited liability company,
2898-society, association, foundation, or institution organized
2899-and operated exclusively for educational purposes" means
2900-all tax-supported public schools, private schools that
2901-offer systematic instruction in useful branches of
2902-learning by methods common to public schools and that
2903-compare favorably in their scope and intensity with the
2904-course of study presented in tax-supported schools, and
2905-vocational or technical schools or institutes organized
2906-
2907-
2908-and operated exclusively to provide a course of study of
2909-not less than 6 weeks duration and designed to prepare
2910-individuals to follow a trade or to pursue a manual,
2911-technical, mechanical, industrial, business, or commercial
2912-occupation.
2913-(34) Beginning January 1, 2000, personal property,
2914-including food, purchased through fundraising events for
2915-the benefit of a public or private elementary or secondary
2916-school, a group of those schools, or one or more school
2917-districts if the events are sponsored by an entity
2918-recognized by the school district that consists primarily
2919-of volunteers and includes parents and teachers of the
2920-school children. This paragraph does not apply to
2921-fundraising events (i) for the benefit of private home
2922-instruction or (ii) for which the fundraising entity
2923-purchases the personal property sold at the events from
2924-another individual or entity that sold the property for
2925-the purpose of resale by the fundraising entity and that
2926-profits from the sale to the fundraising entity. This
2927-paragraph is exempt from the provisions of Section 2-70.
2928-(35) Beginning January 1, 2000 and through December
2929-31, 2001, new or used automatic vending machines that
2930-prepare and serve hot food and beverages, including
2931-coffee, soup, and other items, and replacement parts for
2932-these machines. Beginning January 1, 2002 and through June
2933-30, 2003, machines and parts for machines used in
2934-
2935-
2936-commercial, coin-operated amusement and vending business
2937-if a use or occupation tax is paid on the gross receipts
2938-derived from the use of the commercial, coin-operated
2939-amusement and vending machines. This paragraph is exempt
2940-from the provisions of Section 2-70.
2941-(35-5) Beginning August 23, 2001 and through June 30,
2942-2016, food for human consumption that is to be consumed
2943-off the premises where it is sold (other than alcoholic
2944-beverages, soft drinks, and food that has been prepared
2945-for immediate consumption) and prescription and
2946-nonprescription medicines, drugs, medical appliances, and
2947-insulin, urine testing materials, syringes, and needles
2948-used by diabetics, for human use, when purchased for use
2949-by a person receiving medical assistance under Article V
2950-of the Illinois Public Aid Code who resides in a licensed
2951-long-term care facility, as defined in the Nursing Home
2952-Care Act, or a licensed facility as defined in the ID/DD
2953-Community Care Act, the MC/DD Act, or the Specialized
2954-Mental Health Rehabilitation Act of 2013.
2955-(36) Beginning August 2, 2001, computers and
2956-communications equipment utilized for any hospital purpose
2957-and equipment used in the diagnosis, analysis, or
2958-treatment of hospital patients sold to a lessor who leases
2959-the equipment, under a lease of one year or longer
2960-executed or in effect at the time of the purchase, to a
2961-hospital that has been issued an active tax exemption
2962-
2963-
2964-identification number by the Department under Section 1g
2965-of this Act. This paragraph is exempt from the provisions
2966-of Section 2-70.
2967-(37) Beginning August 2, 2001, personal property sold
2968-to a lessor who leases the property, under a lease of one
2969-year or longer executed or in effect at the time of the
2970-purchase, to a governmental body that has been issued an
2971-active tax exemption identification number by the
2972-Department under Section 1g of this Act. This paragraph is
2973-exempt from the provisions of Section 2-70.
2974-(38) Beginning on January 1, 2002 and through June 30,
2975-2016, tangible personal property purchased from an
2976-Illinois retailer by a taxpayer engaged in centralized
2977-purchasing activities in Illinois who will, upon receipt
2978-of the property in Illinois, temporarily store the
2979-property in Illinois (i) for the purpose of subsequently
2980-transporting it outside this State for use or consumption
2981-thereafter solely outside this State or (ii) for the
2982-purpose of being processed, fabricated, or manufactured
2983-into, attached to, or incorporated into other tangible
2984-personal property to be transported outside this State and
2985-thereafter used or consumed solely outside this State. The
2986-Director of Revenue shall, pursuant to rules adopted in
2987-accordance with the Illinois Administrative Procedure Act,
2988-issue a permit to any taxpayer in good standing with the
2989-Department who is eligible for the exemption under this
2990-
2991-
2992-paragraph (38). The permit issued under this paragraph
2993-(38) shall authorize the holder, to the extent and in the
2994-manner specified in the rules adopted under this Act, to
2995-purchase tangible personal property from a retailer exempt
2996-from the taxes imposed by this Act. Taxpayers shall
2997-maintain all necessary books and records to substantiate
2998-the use and consumption of all such tangible personal
2999-property outside of the State of Illinois.
3000-(39) Beginning January 1, 2008, tangible personal
3001-property used in the construction or maintenance of a
3002-community water supply, as defined under Section 3.145 of
3003-the Environmental Protection Act, that is operated by a
3004-not-for-profit corporation that holds a valid water supply
3005-permit issued under Title IV of the Environmental
3006-Protection Act. This paragraph is exempt from the
3007-provisions of Section 2-70.
3008-(40) Beginning January 1, 2010 and continuing through
3009-December 31, 2029, materials, parts, equipment,
3010-components, and furnishings incorporated into or upon an
3011-aircraft as part of the modification, refurbishment,
3012-completion, replacement, repair, or maintenance of the
3013-aircraft. This exemption includes consumable supplies used
3014-in the modification, refurbishment, completion,
3015-replacement, repair, and maintenance of aircraft. However,
3016-until January 1, 2024, this exemption excludes any
3017-materials, parts, equipment, components, and consumable
3018-
3019-
3020-supplies used in the modification, replacement, repair,
3021-and maintenance of aircraft engines or power plants,
3022-whether such engines or power plants are installed or
3023-uninstalled upon any such aircraft. "Consumable supplies"
3024-include, but are not limited to, adhesive, tape,
3025-sandpaper, general purpose lubricants, cleaning solution,
3026-latex gloves, and protective films.
3027-Beginning January 1, 2010 and continuing through
3028-December 31, 2023, this exemption applies only to the sale
3029-of qualifying tangible personal property to persons who
3030-modify, refurbish, complete, replace, or maintain an
3031-aircraft and who (i) hold an Air Agency Certificate and
3032-are empowered to operate an approved repair station by the
3033-Federal Aviation Administration, (ii) have a Class IV
3034-Rating, and (iii) conduct operations in accordance with
3035-Part 145 of the Federal Aviation Regulations. The
3036-exemption does not include aircraft operated by a
3037-commercial air carrier providing scheduled passenger air
3038-service pursuant to authority issued under Part 121 or
3039-Part 129 of the Federal Aviation Regulations. From January
3040-1, 2024 through December 31, 2029, this exemption applies
3041-only to the use of qualifying tangible personal property
3042-by: (A) persons who modify, refurbish, complete, repair,
3043-replace, or maintain aircraft and who (i) hold an Air
3044-Agency Certificate and are empowered to operate an
3045-approved repair station by the Federal Aviation
3046-
3047-
3048-Administration, (ii) have a Class IV Rating, and (iii)
3049-conduct operations in accordance with Part 145 of the
3050-Federal Aviation Regulations; and (B) persons who engage
3051-in the modification, replacement, repair, and maintenance
3052-of aircraft engines or power plants without regard to
3053-whether or not those persons meet the qualifications of
3054-item (A).
3055-The changes made to this paragraph (40) by Public Act
3056-98-534 are declarative of existing law. It is the intent
3057-of the General Assembly that the exemption under this
3058-paragraph (40) applies continuously from January 1, 2010
3059-through December 31, 2024; however, no claim for credit or
3060-refund is allowed for taxes paid as a result of the
3061-disallowance of this exemption on or after January 1, 2015
3062-and prior to February 5, 2020 (the effective date of
3063-Public Act 101-629).
3064-(41) Tangible personal property sold to a
3065-public-facilities corporation, as described in Section
3066-11-65-10 of the Illinois Municipal Code, for purposes of
3067-constructing or furnishing a municipal convention hall,
3068-but only if the legal title to the municipal convention
3069-hall is transferred to the municipality without any
3070-further consideration by or on behalf of the municipality
3071-at the time of the completion of the municipal convention
3072-hall or upon the retirement or redemption of any bonds or
3073-other debt instruments issued by the public-facilities
3074-
3075-
3076-corporation in connection with the development of the
3077-municipal convention hall. This exemption includes
3078-existing public-facilities corporations as provided in
3079-Section 11-65-25 of the Illinois Municipal Code. This
3080-paragraph is exempt from the provisions of Section 2-70.
3081-(42) Beginning January 1, 2017 and through December
3082-31, 2026, menstrual pads, tampons, and menstrual cups.
3083-(43) Merchandise that is subject to the Rental
3084-Purchase Agreement Occupation and Use Tax. The purchaser
3085-must certify that the item is purchased to be rented
3086-subject to a rental-purchase rental purchase agreement, as
3087-defined in the Rental-Purchase Rental Purchase Agreement
3088-Act, and provide proof of registration under the Rental
3089-Purchase Agreement Occupation and Use Tax Act. This
3090-paragraph is exempt from the provisions of Section 2-70.
3091-(44) Qualified tangible personal property used in the
3092-construction or operation of a data center that has been
3093-granted a certificate of exemption by the Department of
3094-Commerce and Economic Opportunity, whether that tangible
3095-personal property is purchased by the owner, operator, or
3096-tenant of the data center or by a contractor or
3097-subcontractor of the owner, operator, or tenant. Data
3098-centers that would have qualified for a certificate of
3099-exemption prior to January 1, 2020 had Public Act 101-31
3100-been in effect, may apply for and obtain an exemption for
3101-subsequent purchases of computer equipment or enabling
3102-
3103-
3104-software purchased or leased to upgrade, supplement, or
3105-replace computer equipment or enabling software purchased
3106-or leased in the original investment that would have
3107-qualified.
3108-The Department of Commerce and Economic Opportunity
3109-shall grant a certificate of exemption under this item
3110-(44) to qualified data centers as defined by Section
3111-605-1025 of the Department of Commerce and Economic
3112-Opportunity Law of the Civil Administrative Code of
3113-Illinois.
3114-For the purposes of this item (44):
3115-"Data center" means a building or a series of
3116-buildings rehabilitated or constructed to house
3117-working servers in one physical location or multiple
3118-sites within the State of Illinois.
3119-"Qualified tangible personal property" means:
3120-electrical systems and equipment; climate control and
3121-chilling equipment and systems; mechanical systems and
3122-equipment; monitoring and secure systems; emergency
3123-generators; hardware; computers; servers; data storage
3124-devices; network connectivity equipment; racks;
3125-cabinets; telecommunications cabling infrastructure;
3126-raised floor systems; peripheral components or
3127-systems; software; mechanical, electrical, or plumbing
3128-systems; battery systems; cooling systems and towers;
3129-temperature control systems; other cabling; and other
3130-
3131-
3132-data center infrastructure equipment and systems
3133-necessary to operate qualified tangible personal
3134-property, including fixtures; and component parts of
3135-any of the foregoing, including installation,
3136-maintenance, repair, refurbishment, and replacement of
3137-qualified tangible personal property to generate,
3138-transform, transmit, distribute, or manage electricity
3139-necessary to operate qualified tangible personal
3140-property; and all other tangible personal property
3141-that is essential to the operations of a computer data
3142-center. The term "qualified tangible personal
3143-property" also includes building materials physically
3144-incorporated into the qualifying data center. To
3145-document the exemption allowed under this Section, the
3146-retailer must obtain from the purchaser a copy of the
3147-certificate of eligibility issued by the Department of
3148-Commerce and Economic Opportunity.
3149-This item (44) is exempt from the provisions of
3150-Section 2-70.
3151-(45) Beginning January 1, 2020 and through December
3152-31, 2020, sales of tangible personal property made by a
3153-marketplace seller over a marketplace for which tax is due
3154-under this Act but for which use tax has been collected and
3155-remitted to the Department by a marketplace facilitator
3156-under Section 2d of the Use Tax Act are exempt from tax
3157-under this Act. A marketplace seller claiming this
3158-
3159-
3160-exemption shall maintain books and records demonstrating
3161-that the use tax on such sales has been collected and
3162-remitted by a marketplace facilitator. Marketplace sellers
3163-that have properly remitted tax under this Act on such
3164-sales may file a claim for credit as provided in Section 6
3165-of this Act. No claim is allowed, however, for such taxes
3166-for which a credit or refund has been issued to the
3167-marketplace facilitator under the Use Tax Act, or for
3168-which the marketplace facilitator has filed a claim for
3169-credit or refund under the Use Tax Act.
3170-(46) Beginning July 1, 2022, breast pumps, breast pump
3171-collection and storage supplies, and breast pump kits.
3172-This item (46) is exempt from the provisions of Section
3173-2-70. As used in this item (46):
3174-"Breast pump" means an electrically controlled or
3175-manually controlled pump device designed or marketed to be
3176-used to express milk from a human breast during lactation,
3177-including the pump device and any battery, AC adapter, or
3178-other power supply unit that is used to power the pump
3179-device and is packaged and sold with the pump device at the
3180-time of sale.
3181-"Breast pump collection and storage supplies" means
3182-items of tangible personal property designed or marketed
3183-to be used in conjunction with a breast pump to collect
3184-milk expressed from a human breast and to store collected
3185-milk until it is ready for consumption.
3186-
3187-
3188-"Breast pump collection and storage supplies"
3189-includes, but is not limited to: breast shields and breast
3190-shield connectors; breast pump tubes and tubing adapters;
3191-breast pump valves and membranes; backflow protectors and
3192-backflow protector adaptors; bottles and bottle caps
3193-specific to the operation of the breast pump; and breast
3194-milk storage bags.
3195-"Breast pump collection and storage supplies" does not
3196-include: (1) bottles and bottle caps not specific to the
3197-operation of the breast pump; (2) breast pump travel bags
3198-and other similar carrying accessories, including ice
3199-packs, labels, and other similar products; (3) breast pump
3200-cleaning supplies; (4) nursing bras, bra pads, breast
3201-shells, and other similar products; and (5) creams,
3202-ointments, and other similar products that relieve
3203-breastfeeding-related symptoms or conditions of the
3204-breasts or nipples, unless sold as part of a breast pump
3205-kit that is pre-packaged by the breast pump manufacturer
3206-or distributor.
3207-"Breast pump kit" means a kit that: (1) contains no
3208-more than a breast pump, breast pump collection and
3209-storage supplies, a rechargeable battery for operating the
3210-breast pump, a breastmilk cooler, bottle stands, ice
3211-packs, and a breast pump carrying case; and (2) is
3212-pre-packaged as a breast pump kit by the breast pump
3213-manufacturer or distributor.
3214-
3215-
3216-(47) Tangible personal property sold by or on behalf
3217-of the State Treasurer pursuant to the Revised Uniform
3218-Unclaimed Property Act. This item (47) is exempt from the
3219-provisions of Section 2-70.
3220-(48) Beginning on January 1, 2024, tangible personal
3221-property purchased by an active duty member of the armed
3222-forces of the United States who presents valid military
3223-identification and purchases the property using a form of
3224-payment where the federal government is the payor. The
3225-member of the armed forces must complete, at the point of
3226-sale, a form prescribed by the Department of Revenue
3227-documenting that the transaction is eligible for the
3228-exemption under this paragraph. Retailers must keep the
3229-form as documentation of the exemption in their records
3230-for a period of not less than 6 years. "Armed forces of the
3231-United States" means the United States Army, Navy, Air
3232-Force, Marine Corps, or Coast Guard. This paragraph is
3233-exempt from the provisions of Section 2-70.
3234-(49) Beginning on January 1, 2026, as further defined
3235-in Section 2-10, food for human consumption that is to be
3236-consumed off the premises where it is sold (other than
3237-alcoholic beverages, food consisting of or infused with
3238-adult use cannabis, soft drinks, candy, and food that has
3239-been prepared for immediate consumption). This item (49)
3240-is exempt from the provisions of Section 2-70.
3241-(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
3242-
3243-
3244-102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3245-Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3246-5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
3247-5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
3248-6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
3249-12-12-23.)
3250-(35 ILCS 120/2-10)
3251-Sec. 2-10. Rate of tax. Unless otherwise provided in this
3252-Section, the tax imposed by this Act is at the rate of 6.25% of
3253-gross receipts from sales of tangible personal property made
3254-in the course of business.
3255-Beginning on July 1, 2000 and through December 31, 2000,
3256-with respect to motor fuel, as defined in Section 1.1 of the
3257-Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3258-the Use Tax Act, the tax is imposed at the rate of 1.25%.
3259-Beginning on August 6, 2010 through August 15, 2010, and
3260-beginning again on August 5, 2022 through August 14, 2022,
3261-with respect to sales tax holiday items as defined in Section
3262-2-8 of this Act, the tax is imposed at the rate of 1.25%.
3263-Within 14 days after July 1, 2000 (the effective date of
3264-Public Act 91-872), each retailer of motor fuel and gasohol
3265-shall cause the following notice to be posted in a prominently
3266-visible place on each retail dispensing device that is used to
3267-dispense motor fuel or gasohol in the State of Illinois: "As of
3268-July 1, 2000, the State of Illinois has eliminated the State's
3269-
3270-
3271-share of sales tax on motor fuel and gasohol through December
3272-31, 2000. The price on this pump should reflect the
3273-elimination of the tax." The notice shall be printed in bold
3274-print on a sign that is no smaller than 4 inches by 8 inches.
3275-The sign shall be clearly visible to customers. Any retailer
3276-who fails to post or maintain a required sign through December
3277-31, 2000 is guilty of a petty offense for which the fine shall
3278-be $500 per day per each retail premises where a violation
3279-occurs.
3280-With respect to gasohol, as defined in the Use Tax Act, the
3281-tax imposed by this Act applies to (i) 70% of the proceeds of
3282-sales made on or after January 1, 1990, and before July 1,
3283-2003, (ii) 80% of the proceeds of sales made on or after July
3284-1, 2003 and on or before July 1, 2017, (iii) 100% of the
3285-proceeds of sales made after July 1, 2017 and prior to January
3286-1, 2024, (iv) 90% of the proceeds of sales made on or after
3287-January 1, 2024 and on or before December 31, 2028, and (v)
3288-100% of the proceeds of sales made after December 31, 2028. If,
3289-at any time, however, the tax under this Act on sales of
3290-gasohol, as defined in the Use Tax Act, is imposed at the rate
3291-of 1.25%, then the tax imposed by this Act applies to 100% of
3292-the proceeds of sales of gasohol made during that time.
3293-With respect to mid-range ethanol blends, as defined in
3294-Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
3295-applies to (i) 80% of the proceeds of sales made on or after
3296-January 1, 2024 and on or before December 31, 2028 and (ii)
3297-
3298-
3299-100% of the proceeds of sales made after December 31, 2028. If,
3300-at any time, however, the tax under this Act on sales of
3301-mid-range ethanol blends is imposed at the rate of 1.25%, then
3302-the tax imposed by this Act applies to 100% of the proceeds of
3303-sales of mid-range ethanol blends made during that time.
3304-With respect to majority blended ethanol fuel, as defined
3305-in the Use Tax Act, the tax imposed by this Act does not apply
3306-to the proceeds of sales made on or after July 1, 2003 and on
3307-or before December 31, 2028 but applies to 100% of the proceeds
3308-of sales made thereafter.
3309-With respect to biodiesel blends, as defined in the Use
3310-Tax Act, with no less than 1% and no more than 10% biodiesel,
3311-the tax imposed by this Act applies to (i) 80% of the proceeds
3312-of sales made on or after July 1, 2003 and on or before
3313-December 31, 2018 and (ii) 100% of the proceeds of sales made
3314-after December 31, 2018 and before January 1, 2024. On and
3315-after January 1, 2024 and on or before December 31, 2030, the
3316-taxation of biodiesel, renewable diesel, and biodiesel blends
3317-shall be as provided in Section 3-5.1 of the Use Tax Act. If,
3318-at any time, however, the tax under this Act on sales of
3319-biodiesel blends, as defined in the Use Tax Act, with no less
3320-than 1% and no more than 10% biodiesel is imposed at the rate
3321-of 1.25%, then the tax imposed by this Act applies to 100% of
3322-the proceeds of sales of biodiesel blends with no less than 1%
3323-and no more than 10% biodiesel made during that time.
3324-With respect to biodiesel, as defined in the Use Tax Act,
3325-
3326-
3327-and biodiesel blends, as defined in the Use Tax Act, with more
3328-than 10% but no more than 99% biodiesel, the tax imposed by
3329-this Act does not apply to the proceeds of sales made on or
3330-after July 1, 2003 and on or before December 31, 2023. On and
3331-after January 1, 2024 and on or before December 31, 2030, the
3332-taxation of biodiesel, renewable diesel, and biodiesel blends
3333-shall be as provided in Section 3-5.1 of the Use Tax Act.
3334-Until July 1, 2022 and from beginning again on July 1, 2023
3335-through December 31, 2025, with respect to food for human
3336-consumption that is to be consumed off the premises where it is
3337-sold (other than alcoholic beverages, food consisting of or
3338-infused with adult use cannabis, soft drinks, and food that
3339-has been prepared for immediate consumption), the tax is
3340-imposed at the rate of 1%. Beginning July 1, 2022 and until
3341-July 1, 2023, with respect to food for human consumption that
3342-is to be consumed off the premises where it is sold (other than
3343-alcoholic beverages, food consisting of or infused with adult
3344-use cannabis, soft drinks, and food that has been prepared for
3345-immediate consumption), the tax is imposed at the rate of 0%.
3346-On and after January 1, 2026, food for human consumption that
3347-is to be consumed off the premises where it is sold (other than
3348-alcoholic beverages, food consisting of or infused with adult
3349-use cannabis, soft drinks, candy, and food that has been
3350-prepared for immediate consumption) is exempt from the tax
3351-imposed by this Act.
3352-With respect to prescription and nonprescription
3353-
3354-
3355-medicines, drugs, medical appliances, products classified as
3356-Class III medical devices by the United States Food and Drug
3357-Administration that are used for cancer treatment pursuant to
3358-a prescription, as well as any accessories and components
3359-related to those devices, modifications to a motor vehicle for
3360-the purpose of rendering it usable by a person with a
3361-disability, and insulin, blood sugar testing materials,
3362-syringes, and needles used by human diabetics, the tax is
3363-imposed at the rate of 1%. For the purposes of this Section,
3364-until September 1, 2009: the term "soft drinks" means any
3365-complete, finished, ready-to-use, non-alcoholic drink, whether
3366-carbonated or not, including, but not limited to, soda water,
3367-cola, fruit juice, vegetable juice, carbonated water, and all
3368-other preparations commonly known as soft drinks of whatever
3369-kind or description that are contained in any closed or sealed
3370-bottle, can, carton, or container, regardless of size; but
3371-"soft drinks" does not include coffee, tea, non-carbonated
3372-water, infant formula, milk or milk products as defined in the
3373-Grade A Pasteurized Milk and Milk Products Act, or drinks
3374-containing 50% or more natural fruit or vegetable juice.
3375-Notwithstanding any other provisions of this Act,
3376-beginning September 1, 2009, "soft drinks" means non-alcoholic
3377-beverages that contain natural or artificial sweeteners. "Soft
3378-drinks" does not include beverages that contain milk or milk
3379-products, soy, rice or similar milk substitutes, or greater
3380-than 50% of vegetable or fruit juice by volume.
3381-
3382-
3383-Until August 1, 2009, and notwithstanding any other
3384-provisions of this Act, "food for human consumption that is to
3385-be consumed off the premises where it is sold" includes all
3386-food sold through a vending machine, except soft drinks and
3387-food products that are dispensed hot from a vending machine,
3388-regardless of the location of the vending machine. Beginning
3389-August 1, 2009, and notwithstanding any other provisions of
3390-this Act, "food for human consumption that is to be consumed
3391-off the premises where it is sold" includes all food sold
3392-through a vending machine, except soft drinks, candy, and food
3393-products that are dispensed hot from a vending machine,
3394-regardless of the location of the vending machine.
3395-Notwithstanding any other provisions of this Act,
3396-beginning September 1, 2009, "food for human consumption that
3397-is to be consumed off the premises where it is sold" does not
3398-include candy. For purposes of this Section, "candy" means a
3399-preparation of sugar, honey, or other natural or artificial
3400-sweeteners in combination with chocolate, fruits, nuts or
3401-other ingredients or flavorings in the form of bars, drops, or
3402-pieces. "Candy" does not include any preparation that contains
3403-flour or requires refrigeration.
3404-Notwithstanding any other provisions of this Act,
3405-beginning September 1, 2009, "nonprescription medicines and
3406-drugs" does not include grooming and hygiene products. For
3407-purposes of this Section, "grooming and hygiene products"
3408-includes, but is not limited to, soaps and cleaning solutions,
3409-
3410-
3411-shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3412-lotions and screens, unless those products are available by
3413-prescription only, regardless of whether the products meet the
3414-definition of "over-the-counter-drugs". For the purposes of
3415-this paragraph, "over-the-counter-drug" means a drug for human
3416-use that contains a label that identifies the product as a drug
3417-as required by 21 CFR 201.66. The "over-the-counter-drug"
3418-label includes:
3419-(A) a "Drug Facts" panel; or
3420-(B) a statement of the "active ingredient(s)" with a
3421-list of those ingredients contained in the compound,
3422-substance or preparation.
3423-Beginning on January 1, 2014 (the effective date of Public
3424-Act 98-122), "prescription and nonprescription medicines and
3425-drugs" includes medical cannabis purchased from a registered
3426-dispensing organization under the Compassionate Use of Medical
3427-Cannabis Program Act.
3428-As used in this Section, "adult use cannabis" means
3429-cannabis subject to tax under the Cannabis Cultivation
3430-Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3431-and does not include cannabis subject to tax under the
3432-Compassionate Use of Medical Cannabis Program Act.
3433-(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
3434-Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
3435-60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
3436-4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
3437-
3438-
3439-(35 ILCS 120/2-27)
3440-Sec. 2-27. Prepaid telephone calling arrangements.
3441-"Prepaid telephone calling arrangements" mean the right to
3442-exclusively purchase telephone or telecommunications services
3443-that must be paid for in advance and enable the origination of
3444-one or more intrastate, interstate, or international telephone
3445-calls or other telecommunications using an access number, an
3446-authorization code, or both, whether manually or
3447-electronically dialed, for which payment to a retailer must be
3448-made in advance, provided that, unless recharged, no further
3449-service is provided once that prepaid amount of service has
3450-been consumed, and provided further that, on and after January
3451-1, 2025, the telephone or telecommunications services included
3452-in such arrangement are obtained through the purchase of a
3453-preloaded phone, calling card, or other item of tangible
3454-personal property. Prepaid telephone calling arrangements
3455-include the recharge of a prepaid calling arrangement if and
3456-only if, on and after January 1, 2025, the additional
3457-telephone or telecommunications services included in the
3458-recharge are obtained through the purchase of a preloaded
3459-phone, calling card, or other item of tangible personal
3460-property. For purposes of this Section, "recharge" means the
3461-purchase of additional prepaid telephone or telecommunications
3462-services whether or not the purchaser acquires a different
3463-access number or authorization code. For purposes of this
3464-
3465-
3466-Section, "telecommunications" means that term as defined in
3467-Section 2 of the Telecommunications Excise Tax Act. "Prepaid
3468-telephone calling arrangement" does not include an arrangement
3469-whereby the service provider reflects the amount of the
3470-purchase as a credit on an account for a customer under an
3471-existing subscription plan, nor, on and after January 1, 2025,
3472-does it include a recharge that is not obtained through the
3473-purchase of a preloaded phone, calling card, or other item of
3474-tangible personal property.
3475-(Source: P.A. 91-870, eff. 6-22-00.)
3476-Section 22. The Prepaid Wireless 9-1-1 Surcharge Act is
3477-amended by changing Section 15 as follows:
3478-(50 ILCS 753/15)
3479-Sec. 15. Prepaid wireless 9-1-1 surcharge.
3480-(a) Until September 30, 2015, there is hereby imposed on
3481-consumers a prepaid wireless 9-1-1 surcharge of 1.5% per
3482-retail transaction. Beginning October 1, 2015, the prepaid
3483-wireless 9-1-1 surcharge shall be 3% per retail transaction.
3484-Until December 31, 2023 and beginning July 1, 2024, the
3485-surcharge authorized by this subsection (a) does not apply in
3486-a home rule municipality having a population in excess of
3487-500,000.
3488-(a-5) On or after the effective date of this amendatory
3489-Act of the 98th General Assembly and until December 31, 2023,
3490-
3491-
3492-and from July 1, 2024 to July 1, 2029, a home rule municipality
3493-having a population in excess of 500,000 on the effective date
3494-of this amendatory Act may impose a prepaid wireless 9-1-1
3495-surcharge not to exceed 9% per retail transaction sourced to
3496-that jurisdiction and collected and remitted in accordance
3497-with the provisions of subsection (b-5) of this Section.
3498-(b) The prepaid wireless 9-1-1 surcharge shall be
3499-collected by the seller from the consumer with respect to each
3500-retail transaction occurring in this State and shall be
3501-remitted to the Department by the seller as provided in this
3502-Act. The amount of the prepaid wireless 9-1-1 surcharge shall
3503-be separately stated as a distinct item apart from the charge
3504-for the prepaid wireless telecommunications service on an
3505-invoice, receipt, or other similar document that is provided
3506-to the consumer by the seller or shall be otherwise disclosed
3507-to the consumer. If the seller does not separately state the
3508-surcharge as a distinct item to the consumer as provided in
3509-this Section, then the seller shall maintain books and records
3510-as required by this Act which clearly identify the amount of
3511-the 9-1-1 surcharge for retail transactions.
3512-For purposes of this subsection (b), a retail transaction
3513-occurs in this State if (i) the retail transaction is made in
3514-person by a consumer at the seller's business location and the
3515-business is located within the State; (ii) the seller is a
3516-provider and sells prepaid wireless telecommunications service
3517-to a consumer located in Illinois; (iii) the retail
3518-
3519-
3520-transaction is treated as occurring in this State for purposes
3521-of the Retailers' Occupation Tax Act; or (iv) a seller that is
3522-included within the definition of a "retailer maintaining a
3523-place of business in this State" under Section 2 of the Use Tax
3524-Act makes a sale of prepaid wireless telecommunications
3525-service to a consumer located in Illinois. In the case of a
3526-retail transaction which does not occur in person at a
3527-seller's business location, if a consumer uses a credit card
3528-to purchase prepaid wireless telecommunications service
3529-on-line or over the telephone, and no product is shipped to the
3530-consumer, the transaction occurs in this State if the billing
3531-address for the consumer's credit card is in this State.
3532-(b-5) The prepaid wireless 9-1-1 surcharge imposed under
3533-subsection (a-5) of this Section shall be collected by the
3534-seller from the consumer with respect to each retail
3535-transaction occurring in the municipality imposing the
3536-surcharge. The amount of the prepaid wireless 9-1-1 surcharge
3537-shall be separately stated on an invoice, receipt, or other
3538-similar document that is provided to the consumer by the
3539-seller or shall be otherwise disclosed to the consumer. If the
3540-seller does not separately state the surcharge as a distinct
3541-item to the consumer as provided in this Section, then the
3542-seller shall maintain books and records as required by this
3543-Act which clearly identify the amount of the 9-1-1 surcharge
3544-for retail transactions.
3545-For purposes of this subsection (b-5), a retail
3546-
3547-
3548-transaction occurs in the municipality if (i) the retail
3549-transaction is made in person by a consumer at the seller's
3550-business location and the business is located within the
3551-municipality; (ii) the seller is a provider and sells prepaid
3552-wireless telecommunications service to a consumer located in
3553-the municipality; (iii) the retail transaction is treated as
3554-occurring in the municipality for purposes of the Retailers'
3555-Occupation Tax Act; or (iv) a seller that is included within
3556-the definition of a "retailer maintaining a place of business
3557-in this State" under Section 2 of the Use Tax Act makes a sale
3558-of prepaid wireless telecommunications service to a consumer
3559-located in the municipality. In the case of a retail
3560-transaction which does not occur in person at a seller's
3561-business location, if a consumer uses a credit card to
3562-purchase prepaid wireless telecommunications service on-line
3563-or over the telephone, and no product is shipped to the
3564-consumer, the transaction occurs in the municipality if the
3565-billing address for the consumer's credit card is in the
3566-municipality.
3567-(c) The prepaid wireless 9-1-1 surcharge is imposed on the
3568-consumer and not on any provider. The seller shall be liable to
3569-remit all prepaid wireless 9-1-1 surcharges that the seller
3570-collects from consumers as provided in Section 20, including
3571-all such surcharges that the seller is deemed to collect where
3572-the amount of the surcharge has not been separately stated on
3573-an invoice, receipt, or other similar document provided to the
3574-
3575-
3576-consumer by the seller. The surcharge collected or deemed
3577-collected by a seller shall constitute a debt owed by the
3578-seller to this State, and any such surcharge actually
3579-collected shall be held in trust for the benefit of the
3580-Department.
3581-For purposes of this subsection (c), the surcharge shall
3582-not be imposed or collected from entities that have an active
3583-tax exemption identification number issued by the Department
3584-under Section 1g of the Retailers' Occupation Tax Act.
3585-(d) The amount of the prepaid wireless 9-1-1 surcharge
3586-that is collected by a seller from a consumer, if such amount
3587-is separately stated on an invoice, receipt, or other similar
3588-document provided to the consumer by the seller, shall not be
3589-included in the base for measuring any tax, fee, surcharge, or
3590-other charge that is imposed by this State, any political
3591-subdivision of this State, or any intergovernmental agency.
3592-(e) (Blank).
3593-(e-5) Any changes in the rate of the surcharge imposed by a
3594-municipality under the authority granted in subsection (a-5)
3595-of this Section shall be effective on the first day of the
3596-first calendar month to occur at least 60 days after the
3597-enactment of the change. The Department shall provide not less
3598-than 30 days' notice of the increase or reduction in the rate
3599-of such surcharge on the Department's website.
3600-(f) When prepaid wireless telecommunications service is
3601-sold with one or more other products or services for a single,
3602-
3603-
3604-non-itemized price, then the percentage specified in
3605-subsection (a) or (a-5) of this Section 15 shall be applied to
3606-the entire non-itemized price unless the seller elects to
3607-apply the percentage to (i) the dollar amount of the prepaid
3608-wireless telecommunications service if that dollar amount is
3609-disclosed to the consumer or (ii) the portion of the price that
3610-is attributable to the prepaid wireless telecommunications
3611-service if the retailer can identify that portion by
3612-reasonable and verifiable standards from its books and records
3613-that are kept in the regular course of business for other
3614-purposes, including, but not limited to, books and records
3615-that are kept for non-tax purposes. However, if a minimal
3616-amount of prepaid wireless telecommunications service is sold
3617-with a prepaid wireless device for a single, non-itemized
3618-price, then the seller may elect not to apply the percentage
3619-specified in subsection (a) or (a-5) of this Section 15 to such
3620-transaction. For purposes of this subsection, an amount of
3621-service denominated as 10 minutes or less or $5 or less is
3622-considered minimal.
3623-(g) The prepaid wireless 9-1-1 surcharge imposed under
3624-subsections (a) and (a-5) of this Section is not imposed on the
3625-provider or the consumer for wireless Lifeline service where
3626-the consumer does not pay the provider for the service. Where
3627-the consumer purchases from the provider optional minutes,
3628-texts, or other services in addition to the federally funded
3629-Lifeline benefit, a consumer must pay the prepaid wireless
3630-
3631-
3632-9-1-1 surcharge, and it must be collected by the seller
3633-according to subsection (b-5).
3634-(Source: P.A. 102-9, eff. 6-3-21; 103-564, eff. 11-17-23.)
3635-Section 25. The Counties Code is amended by changing
3636-Sections 5-1009, 5-1030, and 5-1134 and by adding Section
3637-5-1006.9 as follows:
3638-(55 ILCS 5/5-1006.9 new)
3639-Sec. 5-1006.9. County Grocery Occupation Tax Law.
3640-(a) The corporate authorities of any county may, by
3641-ordinance or resolution that takes effect on or after January
3642-1, 2026, impose a tax upon all persons engaged in the business
3643-of selling groceries at retail in the county, but outside of
3644-any municipality, on the gross receipts from those sales made
3645-in the course of that business. If imposed, the tax shall be at
3646-the rate of 1% of the gross receipts from these sales.
3647-The tax imposed by a county under this subsection and all
3648-civil penalties that may be assessed as an incident of the tax
3649-shall be collected and enforced by the Department. The
3650-certificate of registration that is issued by the Department
3651-to a retailer under the Retailers' Occupation Tax Act shall
3652-permit the retailer to engage in a business that is taxable
3653-under any ordinance or resolution enacted under this
3654-subsection without registering separately with the Department
3655-under that ordinance or resolution or under this subsection.
3656-
3657-
3658-The Department shall have full power to administer and
3659-enforce this subsection; to collect all taxes and penalties
3660-due under this subsection; to dispose of taxes and penalties
3661-so collected in the manner provided in this Section and under
3662-rules adopted by the Department; and to determine all rights
3663-to credit memoranda arising on account of the erroneous
3664-payment of tax or penalty under this subsection.
3665-In the administration of, and compliance with, this
3666-subsection, the Department and persons who are subject to this
3667-subsection shall have the same rights, remedies, privileges,
3668-immunities, powers, and duties, and be subject to the same
3669-conditions, restrictions, limitations, penalties and
3670-definitions of terms, and employ the same modes of procedure,
3671-as are prescribed in Sections 1, 2 through 2-65 (in respect to
3672-all provisions therein other than the State rate of tax), 2c, 3
3673-(except as to the disposition of taxes and penalties
3674-collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
3675-6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers'
3676-Occupation Tax Act and all of the Uniform Penalty and Interest
3677-Act, as fully as if those provisions were set forth in this
3678-Section.
3679-Persons subject to any tax imposed under the authority
3680-granted in this subsection may reimburse themselves for their
3681-seller's tax liability hereunder by separately stating that
3682-tax as an additional charge, which charge may be stated in
3683-combination, in a single amount, with State tax that sellers
3684-
3685-
3686-are required to collect under the Use Tax Act, pursuant to such
3687-bracket schedules as the Department may prescribe.
3688-(b) If a tax has been imposed under subsection (a), then a
3689-service occupation tax must also be imposed at the same rate
3690-upon all persons engaged, in the county but outside of a
3691-municipality, in the business of making sales of service, who,
3692-as an incident to making those sales of service, transfer
3693-groceries, as defined in this Section, as an incident to a sale
3694-of service.
3695-The tax imposed under this subsection and all civil
3696-penalties that may be assessed as an incident thereof shall be
3697-collected and enforced by the Department. The certificate of
3698-registration that is issued by the Department to a retailer
3699-under the Retailers' Occupation Tax Act or the Service
3700-Occupation Tax Act shall permit the registrant to engage in a
3701-business that is taxable under any ordinance or resolution
3702-enacted pursuant to this subsection without registering
3703-separately with the Department under the ordinance or
3704-resolution or under this subsection.
3705-The Department shall have full power to administer and
3706-enforce this subsection, to collect all taxes and penalties
3707-due under this subsection, to dispose of taxes and penalties
3708-so collected in the manner provided in this Section and under
3709-rules adopted by the Department, and to determine all rights
3710-to credit memoranda arising on account of the erroneous
3711-payment of a tax or penalty under this subsection.
3712-
3713-
3714-In the administration of and compliance with this
3715-subsection, the Department and persons who are subject to this
3716-subsection shall have the same rights, remedies, privileges,
3717-immunities, powers and duties, and be subject to the same
3718-conditions, restrictions, limitations, penalties and
3719-definitions of terms, and employ the same modes of procedure
3720-as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
3721-to all provisions contained in those Sections other than the
3722-State rate of tax), 4, 5, 7, 8, 9 (except as to the disposition
3723-of taxes and penalties collected), 10, 11, 12, 13, 15, 16, 17,
3724-18, 19, and 20 of the Service Occupation Tax Act and all
3725-provisions of the Uniform Penalty and Interest Act, as fully
3726-as if those provisions were set forth in this Section.
3727-Persons subject to any tax imposed under the authority
3728-granted in this subsection may reimburse themselves for their
3729-serviceman's tax liability by separately stating the tax as an
3730-additional charge, which may be stated in combination, in a
3731-single amount, with State tax that servicemen are authorized
3732-to collect under the Service Use Tax Act, pursuant to any
3733-bracketed schedules set forth by the Department.
3734-(c) The Department shall immediately pay over to the State
3735-Treasurer, ex officio, as trustee, all taxes and penalties
3736-collected under this Section. Those taxes and penalties shall
3737-be deposited into the County Grocery Tax Trust Fund, a trust
3738-fund created in the State treasury. Except as otherwise
3739-provided in this Section, moneys in the County Grocery Tax
3740-
3741-
3742-Trust Fund shall be used to make payments to counties and for
3743-the payment of refunds under this Section.
3744-Moneys deposited into the County Grocery Tax Trust Fund
3745-under this Section are not subject to appropriation and shall
3746-be used as provided in this Section. All deposits into the
3747-County Grocery Tax Trust Fund shall be held in the County
3748-Grocery Tax Trust Fund by the State Treasurer, ex officio, as
3749-trustee separate and apart from all public moneys or funds of
3750-this State.
3751-Whenever the Department determines that a refund should be
3752-made under this Section to a claimant instead of issuing a
3753-credit memorandum, the Department shall notify the State
3754-Comptroller, who shall cause the order to be drawn for the
3755-amount specified and to the person named in the notification
3756-from the Department. The refund shall be paid by the State
3757-Treasurer out of the County Grocery Tax Trust Fund.
3758-(d) As soon as possible after the first day of each month,
3759-upon certification of the Department, the Comptroller shall
3760-order transferred, and the Treasurer shall transfer, to the
3761-STAR Bonds Revenue Fund the local sales tax increment, if any,
3762-as defined in the Innovation Development and Economy Act,
3763-collected under this Section.
3764-After the monthly transfer to the STAR Bonds Revenue Fund,
3765-if any, on or before the 25th day of each calendar month, the
3766-Department shall prepare and certify to the Comptroller the
3767-disbursement of stated sums of money to named counties, the
3768-
3769-
3770-counties to be those from which retailers have paid taxes or
3771-penalties under this Section to the Department during the
3772-second preceding calendar month. The amount to be paid to each
3773-county shall be the amount (not including credit memoranda)
3774-collected under this Section during the second preceding
3775-calendar month by the Department plus an amount the Department
3776-determines is necessary to offset any amounts that were
3777-erroneously paid to a different taxing body, and not including
3778-an amount equal to the amount of refunds made during the second
3779-preceding calendar month by the Department on behalf of such
3780-county, and not including any amount that the Department
3781-determines is necessary to offset any amounts that were
3782-payable to a different taxing body but were erroneously paid
3783-to the county, and not including any amounts that are
3784-transferred to the STAR Bonds Revenue Fund. Within 10 days
3785-after receipt by the Comptroller of the disbursement
3786-certification to the counties provided for in this Section to
3787-be given to the Comptroller by the Department, the Comptroller
3788-shall cause the orders to be drawn for the amounts in
3789-accordance with the directions contained in the certification.
3790-(e) Nothing in this Section shall be construed to
3791-authorize a county to impose a tax upon the privilege of
3792-engaging in any business which under the Constitution of the
3793-United States may not be made the subject of taxation by this
3794-State.
3795-(f) Except as otherwise provided in this subsection, an
3796-
3797-
3798-ordinance or resolution imposing or discontinuing the tax
3799-hereunder or effecting a change in the rate thereof shall
3800-either (i) be adopted and a certified copy thereof filed with
3801-the Department on or before the first day of April, whereupon
3802-the Department shall proceed to administer and enforce this
3803-Section as of the first day of July next following the adoption
3804-and filing, or (ii) be adopted and a certified copy thereof
3805-filed with the Department on or before the first day of
3806-October, whereupon the Department shall proceed to administer
3807-and enforce this Section as of the first day of January next
3808-following the adoption and filing.
3809-(g) When certifying the amount of a monthly disbursement
3810-to a county under this Section, the Department shall increase
3811-or decrease the amount by an amount necessary to offset any
3812-misallocation of previous disbursements. The offset amount
3813-shall be the amount erroneously disbursed within the previous
3814-6 months from the time a misallocation is discovered.
3815-(h) As used in this Section, "Department" means the
3816-Department of Revenue.
3817-For purposes of the tax authorized to be imposed under
3818-subsection (a), "groceries" has the same meaning as "food for
3819-human consumption that is to be consumed off the premises
3820-where it is sold (other than alcoholic beverages, food
3821-consisting of or infused with adult use cannabis, soft drinks,
3822-candy, and food that has been prepared for immediate
3823-consumption)", as further defined in Section 2-10 of the
3824-
3825-
3826-Retailers' Occupation Tax Act.
3827-For purposes of the tax authorized to be imposed under
3828-subsection (b), "groceries" has the same meaning as "food for
3829-human consumption that is to be consumed off the premises
3830-where it is sold (other than alcoholic beverages, food
3831-consisting of or infused with adult use cannabis, soft drinks,
3832-candy, and food that has been prepared for immediate
3833-consumption)", as further defined in Section 3-10 of the
3834-Service Occupation Tax Act.
3835-For purposes of the tax authorized to be imposed under
3836-subsection (b), "groceries" also means food prepared for
3837-immediate consumption and transferred incident to a sale of
3838-service subject to the Service Occupation Tax Act or the
3839-Service Use Tax Act by an entity licensed under the Hospital
3840-Licensing Act, the Nursing Home Care Act, the Assisted Living
3841-and Shared Housing Act, the ID/DD Community Care Act, the
3842-MC/DD Act, the Specialized Mental Health Rehabilitation Act of
3843-2013, or the Child Care Act of 1969, or an entity that holds a
3844-permit issued pursuant to the Life Care Facilities Act.
3845-(i) This Section may be referred to as the County Grocery
3846-Occupation Tax Law.
3847-(55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
3848-Sec. 5-1009. Limitation on home rule powers. Except as
3849-provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1006.9
3850-5-1007, and 5-1008, on and after September 1, 1990, no home
3851-
3852-
3853-rule county has the authority to impose, pursuant to its home
3854-rule authority, a retailers' occupation tax, service
3855-occupation tax, use tax, sales tax or other tax on the use,
3856-sale or purchase of tangible personal property based on the
3857-gross receipts from such sales or the selling or purchase
3858-price of said tangible personal property. Notwithstanding the
3859-foregoing, this Section does not preempt any home rule imposed
3860-tax such as the following: (1) a tax on alcoholic beverages,
3861-whether based on gross receipts, volume sold or any other
3862-measurement; (2) a tax based on the number of units of
3863-cigarettes or tobacco products; (3) a tax, however measured,
3864-based on the use of a hotel or motel room or similar facility;
3865-(4) a tax, however measured, on the sale or transfer of real
3866-property; (5) a tax, however measured, on lease receipts; (6)
3867-a tax on food prepared for immediate consumption and on
3868-alcoholic beverages sold by a business which provides for on
3869-premise consumption of said food or alcoholic beverages; or
3870-(7) other taxes not based on the selling or purchase price or
3871-gross receipts from the use, sale or purchase of tangible
3872-personal property. This Section does not preempt a home rule
3873-county from imposing a tax, however measured, on the use, for
3874-consideration, of a parking lot, garage, or other parking
3875-facility.
3876-On and after December 1, 2019, no home rule county has the
3877-authority to impose, pursuant to its home rule authority, a
3878-tax, however measured, on sales of aviation fuel, as defined
3879-
3880-
3881-in Section 3 of the Retailers' Occupation Tax Act, unless the
3882-tax revenue is expended for airport-related purposes. For
3883-purposes of this Section, "airport-related purposes" has the
3884-meaning ascribed in Section 6z-20.2 of the State Finance Act.
3885-Aviation fuel shall be excluded from tax only for so long as
3886-the revenue use requirements of 49 U.S.C. 47017(b) and 49
3887-U.S.C. 47133 are binding on the county.
3888-This Section is a limitation, pursuant to subsection (g)
3889-of Section 6 of Article VII of the Illinois Constitution, on
3890-the power of home rule units to tax. The changes made to this
3891-Section by Public Act 101-10 are a denial and limitation of
3892-home rule powers and functions under subsection (g) of Section
3893-6 of Article VII of the Illinois Constitution.
3894-(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
3895-102-558, eff. 8-20-21.)
3896-(55 ILCS 5/5-1030) (from Ch. 34, par. 5-1030)
3897-Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
3898-(a) The corporate authorities of any county may by
3899-ordinance impose a tax upon all persons engaged in such county
3900-in the business of renting, leasing or letting rooms in a hotel
3901-which is not located within a city, village, or incorporated
3902-town that imposes a tax under Section 8-3-14 of the Illinois
3903-Municipal Code, as defined in "The Hotel Operators' Occupation
3904-Tax Act", at a rate not to exceed 5% of the gross rental
3905-receipts from such renting, leasing or letting, excluding,
3906-
3907-
3908-however, from gross rental receipts, the proceeds of such
3909-renting, leasing or letting to permanent residents of that
3910-hotel, and may provide for the administration and enforcement
3911-of the tax, and for the collection thereof from the persons
3912-subject to the tax, as the corporate authorities determine to
3913-be necessary or practicable for the effective administration
3914-of the tax.
3915-(b) With the consent of municipalities representing at
3916-least 67% of the population of Winnebago County, as determined
3917-by the 2010 federal decennial census and as expressed by
3918-resolution of the corporate authorities of those
3919-municipalities, the county board of Winnebago County may, by
3920-ordinance, impose a tax upon all persons engaged in the county
3921-in the business of renting, leasing, or letting rooms in a
3922-hotel that imposes a tax under Section 8-3-14 of the Illinois
3923-Municipal Code, as defined in the "The Hotel Operators'
3924-Occupation Tax Act", at a rate not to exceed 2% of the gross
3925-rental receipts from renting, leasing, or letting, excluding,
3926-however, from gross rental receipts, the proceeds of the
3927-renting, leasing, or letting to permanent residents of that
3928-hotel, and may provide for the administration and enforcement
3929-of the tax, and for the collection thereof from the persons
3930-subject to the tax, as the county board determines to be
3931-necessary or practicable for the effective administration of
3932-the tax. The tax shall be instituted on a county-wide basis and
3933-shall be in addition to any tax imposed by this or any other
3934-
3935-
3936-provision of law. The revenue generated under this subsection
3937-shall be accounted for and segregated from all other funds of
3938-the county and shall be utilized solely for either: (1)
3939-encouraging, supporting, marketing, constructing, or
3940-operating, either directly by the county or through other
3941-taxing bodies within the county, sports, arts, or other
3942-entertainment or tourism facilities or programs for the
3943-purpose of promoting tourism, competitiveness, job growth, and
3944-for the general health and well-being of the citizens of the
3945-county; or (2) payment towards debt services on bonds issued
3946-for the purposes set forth in this subsection.
3947-(b-5) The county board of Sangamon County may, by
3948-ordinance, impose a tax upon all persons engaged in the county
3949-in the business of renting, leasing, or letting rooms in a
3950-hotel that imposes a tax under Section 8-3-14 of the Illinois
3951-Municipal Code, as defined in the Hotel Operators' Occupation
3952-Tax Act, at a rate not to exceed 3% of the gross rental
3953-receipts from renting, leasing, or letting, excluding,
3954-however, from gross rental receipts, the proceeds of the
3955-renting, leasing, or letting to permanent residents of that
3956-hotel, and may provide for the administration and enforcement
3957-of the tax, and for the collection thereof from the persons
3958-subject to the tax, as the county board determines to be
3959-necessary or practicable for the effective administration of
3960-the tax. The tax shall be instituted on a county-wide basis and
3961-shall be in addition to any tax imposed by this or any other
3962-
3963-
3964-provision of law. The revenue generated under this subsection
3965-shall be accounted for and segregated from all other funds of
3966-the county and shall be used solely for either: (1)
3967-encouraging, supporting, marketing, constructing, or
3968-operating, either directly by the county or through other
3969-taxing bodies within the county, sports, arts, or other
3970-entertainment or tourism facilities or programs for the
3971-purpose of promoting tourism, competitiveness, job growth, and
3972-for the general health and well-being of the citizens of the
3973-county; or (2) payment towards debt services on bonds issued
3974-for the purposes set forth in this subsection.
3975-(c) A Tourism Facility Board shall be established,
3976-comprised of a representative from the county and from each
3977-municipality that has approved the imposition of the tax under
3978-subsection (b) of this Section.
3979-(1) A Board member's vote is weighted based on the
3980-municipality's population relative to the population of
3981-the county, with the county representing the population
3982-within unincorporated areas of the county. Representatives
3983-from the Rockford Park District and Rockford Area
3984-Convention and Visitors Bureau shall serve as ex-officio
3985-members with no voting rights.
3986-(2) The Board must meet not less frequently than once
3987-per year to direct the use of revenues collected from the
3988-tax imposed under subsection (b) of this Section that are
3989-not already directed for use pursuant to an
3990-
3991-
3992-intergovernmental agreement between the county and another
3993-entity represented on the Board, including the ex-officio
3994-members, and for any other reason the Board deems
3995-necessary. Affirmative actions of the Board shall require
3996-a weighted vote of Board members representing not less
3997-than 67% of the population of the county.
3998-(3) The Board shall not be a separate unit of local
3999-government, shall have no paid staff, and members of the
4000-Board shall receive no compensation or reimbursement of
4001-expenses from proceeds of the tax imposed under subsection
4002-(b) of this Section.
4003-(d) Persons subject to any tax imposed pursuant to
4004-authority granted by this Section may reimburse themselves for
4005-their tax liability for such tax by separately stating such
4006-tax as an additional charge, which charge may be stated in
4007-combination, in a single amount, with State tax imposed under
4008-"The Hotel Operators' Occupation Tax Act".
4009-Nothing in this Section shall be construed to authorize a
4010-county to impose a tax upon the privilege of engaging in any
4011-business which under the Constitution of the United States may
4012-not be made the subject of taxation by this State.
4013-An ordinance or resolution imposing a tax hereunder or
4014-effecting a change in the rate thereof shall be effective on
4015-the first day of the calendar month next following its passage
4016-and required publication.
4017-The amounts collected by any county pursuant to this
4018-
4019-
4020-Section shall be expended to promote tourism; conventions;
4021-expositions; theatrical, sports and cultural activities within
4022-that county or otherwise to attract nonresident overnight
4023-visitors to the county.
4024-Any county may agree with any unit of local government,
4025-including any authority defined as a metropolitan exposition,
4026-auditorium and office building authority, fair and exposition
4027-authority, exposition and auditorium authority, or civic
4028-center authority created pursuant to provisions of Illinois
4029-law and the territory of which unit of local government or
4030-authority is co-extensive with or wholly within such county,
4031-to impose and collect for a period not to exceed 40 years, any
4032-portion or all of the tax authorized pursuant to this Section
4033-and to transmit such tax so collected to such unit of local
4034-government or authority. The amount so paid shall be expended
4035-by any such unit of local government or authority for the
4036-purposes for which such tax is authorized. Any such agreement
4037-must be authorized by resolution or ordinance, as the case may
4038-be, of such county and unit of local government or authority,
4039-and such agreement may provide for the irrevocable imposition
4040-and collection of said tax at such rate, or amount as limited
4041-by a given rate, as may be agreed upon for the full period of
4042-time set forth in such agreement; and such agreement may
4043-further provide for any other terms as deemed necessary or
4044-advisable by such county and such unit of local government or
4045-authority. Any such agreement shall be binding and enforceable
4046-
4047-
4048-by either party to such agreement. Such agreement entered into
4049-pursuant to this Section shall not in any event constitute an
4050-indebtedness of such county subject to any limitation imposed
4051-by statute or otherwise.
4052-(Source: P.A. 98-313, eff. 8-12-13.)
4053-(55 ILCS 5/5-1134)
4054-Sec. 5-1134. Project labor agreements.
4055-(a) Any sports, arts, or entertainment facilities that
4056-receive revenue from a tax imposed under subsection (b) or
4057-(b-5) of Section 5-1030 of this Code shall be considered to be
4058-public works within the meaning of the Prevailing Wage Act.
4059-The county authorities responsible for the construction,
4060-renovation, modification, or alteration of the sports, arts,
4061-or entertainment facilities shall enter into project labor
4062-agreements with labor organizations as defined in the National
4063-Labor Relations Act to assure that no labor dispute interrupts
4064-or interferes with the construction, renovation, modification,
4065-or alteration of the projects.
4066-(b) The project labor agreements must include the
4067-following:
4068-(1) provisions establishing the minimum hourly wage
4069-for each class of labor organization employees;
4070-(2) provisions establishing the benefits and other
4071-compensation for such class of labor organization; and
4072-(3) provisions establishing that no strike or disputes
4073-
4074-
4075-will be engaged in by the labor organization employees.
4076-The county, taxing bodies, municipalities, and the labor
4077-organizations shall have the authority to include other terms
4078-and conditions as they deem necessary.
4079-(c) The project labor agreement shall be filed with the
4080-Director of the Illinois Department of Labor in accordance
4081-with procedures established by the Department. At a minimum,
4082-the project labor agreement must provide the names, addresses,
4083-and occupations of the owner of the facilities and the
4084-individuals representing the labor organization employees
4085-participating in the project labor agreement. The agreement
4086-must also specify the terms and conditions required in
4087-subsection (b) of this Section.
4088-(d) In any agreement for the construction or
4089-rehabilitation of a facility using revenue generated under
4090-subsection (b) or (b-5) of Section 5-1030 of this Code, in
4091-connection with the prequalification of general contractors
4092-for construction or rehabilitation of the facility, it shall
4093-be required that a commitment will be submitted detailing how
4094-the general contractor will expend 15% or more of the
4095-aggregate dollar value of the project as a whole with one or
4096-more minority-owned businesses, women-owned businesses, or
4097-businesses owned by a person with a disability, as these terms
4098-are defined in Section 2 of the Business Enterprise for
4099-Minorities, Women, and Persons with Disabilities Act.
4100-(Source: P.A. 100-391, eff. 8-25-17.)
4101-
4102-
4103-Section 30. The Illinois Municipal Code is amended by
4104-changing Sections 8-11-1.1 and 8-11-6a and adding Section
4105-8-11-24 as follows:
4106-(65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
4107-Sec. 8-11-1.1. Non-home rule municipalities; imposition of
4108-taxes.
4109-(a) The corporate authorities of a non-home rule
4110-municipality may, upon approval of the electors of the
4111-municipality pursuant to subsection (b) of this Section,
4112-impose by ordinance or resolution the taxes tax authorized in
4113-Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
4114-(b) (Blank). The corporate authorities of the municipality
4115-may by ordinance or resolution call for the submission to the
4116-electors of the municipality the question of whether the
4117-municipality shall impose such tax. Such question shall be
4118-certified by the municipal clerk to the election authority in
4119-accordance with Section 28-5 of the Election Code and shall be
4120-in a form in accordance with Section 16-7 of the Election Code.
4121-Notwithstanding any provision of law to the contrary, if
4122-the proceeds of the tax may be used for municipal operations
4123-pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
4124-election authority must submit the question in substantially
4125-the following form:
4126-Shall the corporate authorities of the municipality be
4127-
4128-
4129-authorized to levy a tax at a rate of (rate)% for
4130-expenditures on municipal operations, expenditures on
4131-public infrastructure, or property tax relief?
4132-If a majority of the electors in the municipality voting
4133-upon the question vote in the affirmative, such tax shall be
4134-imposed.
4135-(c) Until January 1, 1992, an ordinance or resolution
4136-imposing the tax of not more than 1% hereunder or
4137-discontinuing the same shall be adopted and a certified copy
4138-thereof, together with a certification that the ordinance or
4139-resolution received referendum approval in the case of the
4140-imposition of such tax, filed with the Department of Revenue,
4141-on or before the first day of June, whereupon the Department
4142-shall proceed to administer and enforce the additional tax or
4143-to discontinue the tax, as the case may be, as of the first day
4144-of September next following such adoption and filing.
4145-Beginning January 1, 1992 and through December 31, 1992,
4146-an ordinance or resolution imposing or discontinuing the tax
4147-hereunder shall be adopted and a certified copy thereof filed
4148-with the Department on or before the first day of July,
4149-whereupon the Department shall proceed to administer and
4150-enforce this Section as of the first day of October next
4151-following such adoption and filing.
4152-Beginning January 1, 1993, and through September 30, 2002,
4153-an ordinance or resolution imposing or discontinuing the tax
4154-hereunder shall be adopted and a certified copy thereof filed
4155-
4156-
4157-with the Department on or before the first day of October,
4158-whereupon the Department shall proceed to administer and
4159-enforce this Section as of the first day of January next
4160-following such adoption and filing.
4161-Beginning October 1, 2002, and through December 31, 2013,
4162-an ordinance or resolution imposing or discontinuing the tax
4163-under this Section or effecting a change in the rate of tax
4164-must either (i) be adopted and a certified copy of the
4165-ordinance or resolution filed with the Department on or before
4166-the first day of April, whereupon the Department shall proceed
4167-to administer and enforce this Section as of the first day of
4168-July next following the adoption and filing; or (ii) be
4169-adopted and a certified copy of the ordinance or resolution
4170-filed with the Department on or before the first day of
4171-October, whereupon the Department shall proceed to administer
4172-and enforce this Section as of the first day of January next
4173-following the adoption and filing.
4174-Beginning January 1, 2014, if an ordinance or resolution
4175-imposing the tax under this Section, discontinuing the tax
4176-under this Section, or effecting a change in the rate of tax
4177-under this Section is adopted, a certified copy thereof,
4178-together with a certification that the ordinance or resolution
4179-received referendum approval in the case of the imposition of
4180-or increase in the rate of such tax, shall be filed with the
4181-Department of Revenue, either (i) on or before the first day of
4182-May, whereupon the Department shall proceed to administer and
4183-
4184-
4185-enforce this Section as of the first day of July next following
4186-the adoption and filing; or (ii) on or before the first day of
4187-October, whereupon the Department shall proceed to administer
4188-and enforce this Section as of the first day of January next
4189-following the adoption and filing.
4190-Notwithstanding any provision in this Section to the
4191-contrary, if, in a non-home rule municipality with more than
4192-150,000 but fewer than 200,000 inhabitants, as determined by
4193-the last preceding federal decennial census, an ordinance or
4194-resolution under this Section imposes or discontinues a tax or
4195-changes the tax rate as of July 1, 2007, then that ordinance or
4196-resolution, together with a certification that the ordinance
4197-or resolution received referendum approval in the case of the
4198-imposition of the tax, must be adopted and a certified copy of
4199-that ordinance or resolution must be filed with the Department
4200-on or before May 15, 2007, whereupon the Department shall
4201-proceed to administer and enforce this Section as of July 1,
4202-2007.
4203-Notwithstanding any provision in this Section to the
4204-contrary, if, in a non-home rule municipality with more than
4205-6,500 but fewer than 7,000 inhabitants, as determined by the
4206-last preceding federal decennial census, an ordinance or
4207-resolution under this Section imposes or discontinues a tax or
4208-changes the tax rate on or before May 20, 2009, then that
4209-ordinance or resolution, together with a certification that
4210-the ordinance or resolution received referendum approval in
4211-
4212-
4213-the case of the imposition of the tax, must be adopted and a
4214-certified copy of that ordinance or resolution must be filed
4215-with the Department on or before May 20, 2009, whereupon the
4216-Department shall proceed to administer and enforce this
4217-Section as of July 1, 2009.
4218-A non-home rule municipality may file a certified copy of
4219-an ordinance or resolution, with a certification that the
4220-ordinance or resolution received referendum approval in the
4221-case of the imposition of the tax, with the Department of
4222-Revenue, as required under this Section, only after October 2,
4223-2000.
4224-The tax authorized by this Section may not be more than 1%
4225-and may be imposed only in 1/4% increments.
4226-(Source: P.A. 98-584, eff. 8-27-13.)
4227-(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
4228-Sec. 8-11-6a. Home rule municipalities; preemption of
4229-certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
4230-8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on
4231-and after September 1, 1990, no home rule municipality has the
4232-authority to impose, pursuant to its home rule authority, a
4233-retailer's occupation tax, service occupation tax, use tax,
4234-sales tax or other tax on the use, sale or purchase of tangible
4235-personal property based on the gross receipts from such sales
4236-or the selling or purchase price of said tangible personal
4237-property. Notwithstanding the foregoing, this Section does not
4238-
4239-
4240-preempt any home rule imposed tax such as the following: (1) a
4241-tax on alcoholic beverages, whether based on gross receipts,
4242-volume sold or any other measurement; (2) a tax based on the
4243-number of units of cigarettes or tobacco products (provided,
4244-however, that a home rule municipality that has not imposed a
4245-tax based on the number of units of cigarettes or tobacco
4246-products before July 1, 1993, shall not impose such a tax after
4247-that date); (3) a tax, however measured, based on the use of a
4248-hotel or motel room or similar facility; (4) a tax, however
4249-measured, on the sale or transfer of real property; (5) a tax,
4250-however measured, on lease receipts; (6) a tax on food
4251-prepared for immediate consumption and on alcoholic beverages
4252-sold by a business which provides for on premise consumption
4253-of said food or alcoholic beverages; or (7) other taxes not
4254-based on the selling or purchase price or gross receipts from
4255-the use, sale or purchase of tangible personal property. This
4256-Section does not preempt a home rule municipality with a
4257-population of more than 2,000,000 from imposing a tax, however
4258-measured, on the use, for consideration, of a parking lot,
4259-garage, or other parking facility. This Section is not
4260-intended to affect any existing tax on food and beverages
4261-prepared for immediate consumption on the premises where the
4262-sale occurs, or any existing tax on alcoholic beverages, or
4263-any existing tax imposed on the charge for renting a hotel or
4264-motel room, which was in effect January 15, 1988, or any
4265-extension of the effective date of such an existing tax by
4266-
4267-
4268-ordinance of the municipality imposing the tax, which
4269-extension is hereby authorized, in any non-home rule
4270-municipality in which the imposition of such a tax has been
4271-upheld by judicial determination, nor is this Section intended
4272-to preempt the authority granted by Public Act 85-1006. On and
4273-after December 1, 2019, no home rule municipality has the
4274-authority to impose, pursuant to its home rule authority, a
4275-tax, however measured, on sales of aviation fuel, as defined
4276-in Section 3 of the Retailers' Occupation Tax Act, unless the
4277-tax is not subject to the revenue use requirements of 49 U.S.C.
4278-47107(b) and 49 U.S.C. 47133, or unless the tax revenue is
4279-expended for airport-related purposes. For purposes of this
4280-Section, "airport-related purposes" has the meaning ascribed
4281-in Section 6z-20.2 of the State Finance Act. Aviation fuel
4282-shall be excluded from tax only if, and for so long as, the
4283-revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
4284-47133 are binding on the municipality. This Section is a
4285-limitation, pursuant to subsection (g) of Section 6 of Article
4286-VII of the Illinois Constitution, on the power of home rule
4287-units to tax. The changes made to this Section by Public Act
4288-101-10 are a denial and limitation of home rule powers and
4289-functions under subsection (g) of Section 6 of Article VII of
4290-the Illinois Constitution.
4291-(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
4292-101-593, eff. 12-4-19.)
4293-
4294-
4295-(65 ILCS 5/8-11-24 new)
4296-Sec. 8-11-24. Municipal Grocery Occupation Tax Law.
4297-(a) The corporate authorities of any municipality may, by
4298-ordinance or resolution that takes effect on or after January
4299-1, 2026, impose a tax upon all persons engaged in the business
4300-of selling groceries at retail in the municipality on the
4301-gross receipts from those sales made in the course of that
4302-business. If imposed, the tax shall be at the rate of 1% of the
4303-gross receipts from these sales.
4304-The tax imposed by a municipality under this subsection
4305-and all civil penalties that may be assessed as an incident of
4306-the tax shall be collected and enforced by the Department. The
4307-certificate of registration that is issued by the Department
4308-to a retailer under the Retailers' Occupation Tax Act shall
4309-permit the retailer to engage in a business that is taxable
4310-under any ordinance or resolution enacted under this
4311-subsection without registering separately with the Department
4312-under that ordinance or resolution or under this subsection.
4313-The Department shall have full power to administer and
4314-enforce this subsection; to collect all taxes and penalties
4315-due under this subsection; to dispose of taxes and penalties
4316-so collected in the manner provided in this Section and under
4317-rules adopted by the Department; and to determine all rights
4318-to credit memoranda arising on account of the erroneous
4319-payment of tax or penalty under this subsection.
4320-In the administration of, and compliance with, this
4321-
4322-
4323-subsection, the Department and persons who are subject to this
4324-subsection shall have the same rights, remedies, privileges,
4325-immunities, powers, and duties, and be subject to the same
4326-conditions, restrictions, limitations, penalties and
4327-definitions of terms, and employ the same modes of procedure,
4328-as are prescribed in Sections 1, 2 through 2-65 (in respect to
4329-all provisions therein other than the State rate of tax), 2c, 3
4330-(except as to the disposition of taxes and penalties
4331-collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
4332-6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers'
4333-Occupation Tax Act and all of the Uniform Penalty and Interest
4334-Act, as fully as if those provisions were set forth in this
4335-Section.
4336-Persons subject to any tax imposed under the authority
4337-granted in this subsection may reimburse themselves for their
4338-seller's tax liability hereunder by separately stating that
4339-tax as an additional charge, which charge may be stated in
4340-combination, in a single amount, with State tax which sellers
4341-are required to collect under the Use Tax Act, pursuant to such
4342-bracket schedules as the Department may prescribe.
4343-(b) If a tax has been imposed under subsection (a), then a
4344-service occupation tax must also be imposed at the same rate
4345-upon all persons engaged, in the municipality, in the business
4346-of making sales of service, who, as an incident to making those
4347-sales of service, transfer groceries, as defined in this
4348-Section, as an incident to a sale of service.
4349-
4350-
4351-The tax imposed under this subsection and all civil
4352-penalties that may be assessed as an incident thereof shall be
4353-collected and enforced by the Department. The certificate of
4354-registration that is issued by the Department to a retailer
4355-under the Retailers' Occupation Tax Act or the Service
4356-Occupation Tax Act shall permit the registrant to engage in a
4357-business that is taxable under any ordinance or resolution
4358-enacted pursuant to this subsection without registering
4359-separately with the Department under the ordinance or
4360-resolution or under this subsection.
4361-The Department shall have full power to administer and
4362-enforce this subsection, to collect all taxes and penalties
4363-due under this subsection, to dispose of taxes and penalties
4364-so collected in the manner provided in this Section and under
4365-rules adopted by the Department, and to determine all rights
4366-to credit memoranda arising on account of the erroneous
4367-payment of a tax or penalty under this subsection.
4368-In the administration of and compliance with this
4369-subsection, the Department and persons who are subject to this
4370-subsection shall have the same rights, remedies, privileges,
4371-immunities, powers and duties, and be subject to the same
4372-conditions, restrictions, limitations, penalties and
4373-definitions of terms, and employ the same modes of procedure
4374-as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
4375-to all provisions contained in those Sections other than the
4376-State rate of tax), 4, 5, 7, 8, 9 (except as to the disposition
4377-
4378-
4379-of taxes and penalties collected), 10, 11, 12, 13, 15, 16, 17,
4380-18, 19, and 20 of the Service Occupation Tax Act and all
4381-provisions of the Uniform Penalty and Interest Act, as fully
4382-as if those provisions were set forth in this Section.
4383-Persons subject to any tax imposed under the authority
4384-granted in this subsection may reimburse themselves for their
4385-serviceman's tax liability by separately stating the tax as an
4386-additional charge, which may be stated in combination, in a
4387-single amount, with State tax that servicemen are authorized
4388-to collect under the Service Use Tax Act, pursuant to any
4389-bracketed schedules set forth by the Department.
4390-(c) The Department shall immediately pay over to the State
4391-Treasurer, ex officio, as trustee, all taxes and penalties
4392-collected under this Section. Those taxes and penalties shall
4393-be deposited into the Municipal Grocery Tax Trust Fund, a
4394-trust fund created in the State treasury. Except as otherwise
4395-provided in this Section, moneys in the Municipal Grocery Tax
4396-Trust Fund shall be used to make payments to municipalities
4397-and for the payment of refunds under this Section.
4398-Moneys deposited into the Municipal Grocery Tax Trust Fund
4399-under this Section are not subject to appropriation and shall
4400-be used as provided in this Section. All deposits into the
4401-Municipal Grocery Tax Trust Fund shall be held in the
4402-Municipal Grocery Tax Trust Fund by the State Treasurer, ex
4403-officio, as trustee separate and apart from all public moneys
4404-or funds of this State.
4405-
4406-
4407-Whenever the Department determines that a refund should be
4408-made under this Section to a claimant instead of issuing a
4409-credit memorandum, the Department shall notify the State
4410-Comptroller, who shall cause the order to be drawn for the
4411-amount specified and to the person named in the notification
4412-from the Department. The refund shall be paid by the State
4413-Treasurer out of the Municipal Grocery Tax Trust Fund.
4414-(d) As soon as possible after the first day of each month,
4415-upon certification of the Department, the Comptroller shall
4416-order transferred, and the Treasurer shall transfer, to the
4417-STAR Bonds Revenue Fund the local sales tax increment, if any,
4418-as defined in the Innovation Development and Economy Act,
4419-collected under this Section.
4420-After the monthly transfer to the STAR Bonds Revenue Fund,
4421-if any, on or before the 25th day of each calendar month, the
4422-Department shall prepare and certify to the Comptroller the
4423-disbursement of stated sums of money to named municipalities,
4424-the municipalities to be those from which retailers have paid
4425-taxes or penalties under this Section to the Department during
4426-the second preceding calendar month. The amount to be paid to
4427-each municipality shall be the amount (not including credit
4428-memoranda) collected under this Section during the second
4429-preceding calendar month by the Department plus an amount the
4430-Department determines is necessary to offset any amounts that
4431-were erroneously paid to a different taxing body, and not
4432-including an amount equal to the amount of refunds made during
4433-
4434-
4435-the second preceding calendar month by the Department on
4436-behalf of such municipality, and not including any amount that
4437-the Department determines is necessary to offset any amounts
4438-that were payable to a different taxing body but were
4439-erroneously paid to the municipality, and not including any
4440-amounts that are transferred to the STAR Bonds Revenue Fund.
4441-Within 10 days after receipt by the Comptroller of the
4442-disbursement certification to the municipalities provided for
4443-in this Section to be given to the Comptroller by the
4444-Department, the Comptroller shall cause the orders to be drawn
4445-for the amounts in accordance with the directions contained in
4446-the certification.
4447-(e) Nothing in this Section shall be construed to
4448-authorize a municipality to impose a tax upon the privilege of
4449-engaging in any business which under the Constitution of the
4450-United States may not be made the subject of taxation by this
4451-State.
4452-(f) Except as otherwise provided in this subsection, an
4453-ordinance or resolution imposing or discontinuing the tax
4454-hereunder or effecting a change in the rate thereof shall
4455-either (i) be adopted and a certified copy thereof filed with
4456-the Department on or before the first day of April, whereupon
4457-the Department shall proceed to administer and enforce this
4458-Section as of the first day of July next following the adoption
4459-and filing or (ii) be adopted and a certified copy thereof
4460-filed with the Department on or before the first day of
4461-
4462-
4463-October, whereupon the Department shall proceed to administer
4464-and enforce this Section as of the first day of January next
4465-following the adoption and filing.
4466-(g) When certifying the amount of a monthly disbursement
4467-to a municipality under this Section, the Department shall
4468-increase or decrease the amount by an amount necessary to
4469-offset any misallocation of previous disbursements. The offset
4470-amount shall be the amount erroneously disbursed within the
4471-previous 6 months from the time a misallocation is discovered.
4472-(h) As used in this Section, "Department" means the
4473-Department of Revenue.
4474-For purposes of the tax authorized to be imposed under
4475-subsection (a), "groceries" has the same meaning as "food for
4476-human consumption that is to be consumed off the premises
4477-where it is sold (other than alcoholic beverages, food
4478-consisting of or infused with adult use cannabis, soft drinks,
4479-candy, and food that has been prepared for immediate
4480-consumption)", as further defined in Section 2-10 of the
4481-Retailers' Occupation Tax Act.
4482-For purposes of the tax authorized to be imposed under
4483-subsection (b), "groceries" has the same meaning as "food for
4484-human consumption that is to be consumed off the premises
4485-where it is sold (other than alcoholic beverages, food
4486-consisting of or infused with adult use cannabis, soft drinks,
4487-candy, and food that has been prepared for immediate
4488-consumption)", as further defined in Section 3-10 of the
4489-
4490-
4491-Service Occupation Tax Act. For purposes of the tax authorized
4492-to be imposed under subsection (b), "groceries" also means
4493-food prepared for immediate consumption and transferred
4494-incident to a sale of service subject to the Service
4495-Occupation Tax Act or the Service Use Tax Act by an entity
4496-licensed under the Hospital Licensing Act, the Nursing Home
4497-Care Act, the Assisted Living and Shared Housing Act, the
4498-ID/DD Community Care Act, the MC/DD Act, the Specialized
4499-Mental Health Rehabilitation Act of 2013, or the Child Care
4500-Act of 1969, or an entity that holds a permit issued pursuant
4501-to the Life Care Facilities Act.
4502-(i) This Section may be referred to as the Municipal
4503-Grocery Occupation Tax Law.
4504-Section 35. The Regional Transportation Authority Act is
4505-amended by changing Section 4.03 as follows:
4506-(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
4507-Sec. 4.03. Taxes.
4508-(a) In order to carry out any of the powers or purposes of
4509-the Authority, the Board may by ordinance adopted with the
4510-concurrence of 12 of the then Directors, impose throughout the
4511-metropolitan region any or all of the taxes provided in this
4512-Section. Except as otherwise provided in this Act, taxes
4513-imposed under this Section and civil penalties imposed
4514-incident thereto shall be collected and enforced by the State
4515-
4516-
4517-Department of Revenue. The Department shall have the power to
4518-administer and enforce the taxes and to determine all rights
4519-for refunds for erroneous payments of the taxes. Nothing in
4520-Public Act 95-708 is intended to invalidate any taxes
4521-currently imposed by the Authority. The increased vote
4522-requirements to impose a tax shall only apply to actions taken
4523-after January 1, 2008 (the effective date of Public Act
4524-95-708).
4525-(b) The Board may impose a public transportation tax upon
4526-all persons engaged in the metropolitan region in the business
4527-of selling at retail motor fuel for operation of motor
4528-vehicles upon public highways. The tax shall be at a rate not
4529-to exceed 5% of the gross receipts from the sales of motor fuel
4530-in the course of the business. As used in this Act, the term
4531-"motor fuel" shall have the same meaning as in the Motor Fuel
4532-Tax Law. The Board may provide for details of the tax. The
4533-provisions of any tax shall conform, as closely as may be
4534-practicable, to the provisions of the Municipal Retailers
4535-Occupation Tax Act, including without limitation, conformity
4536-to penalties with respect to the tax imposed and as to the
4537-powers of the State Department of Revenue to promulgate and
4538-enforce rules and regulations relating to the administration
4539-and enforcement of the provisions of the tax imposed, except
4540-that reference in the Act to any municipality shall refer to
4541-the Authority and the tax shall be imposed only with regard to
4542-receipts from sales of motor fuel in the metropolitan region,
4543-
4544-
4545-at rates as limited by this Section.
4546-(c) In connection with the tax imposed under paragraph (b)
4547-of this Section, the Board may impose a tax upon the privilege
4548-of using in the metropolitan region motor fuel for the
4549-operation of a motor vehicle upon public highways, the tax to
4550-be at a rate not in excess of the rate of tax imposed under
4551-paragraph (b) of this Section. The Board may provide for
4552-details of the tax.
4553-(d) The Board may impose a motor vehicle parking tax upon
4554-the privilege of parking motor vehicles at off-street parking
4555-facilities in the metropolitan region at which a fee is
4556-charged, and may provide for reasonable classifications in and
4557-exemptions to the tax, for administration and enforcement
4558-thereof and for civil penalties and refunds thereunder and may
4559-provide criminal penalties thereunder, the maximum penalties
4560-not to exceed the maximum criminal penalties provided in the
4561-Retailers' Occupation Tax Act. The Authority may collect and
4562-enforce the tax itself or by contract with any unit of local
4563-government. The State Department of Revenue shall have no
4564-responsibility for the collection and enforcement unless the
4565-Department agrees with the Authority to undertake the
4566-collection and enforcement. As used in this paragraph, the
4567-term "parking facility" means a parking area or structure
4568-having parking spaces for more than 2 vehicles at which motor
4569-vehicles are permitted to park in return for an hourly, daily,
4570-or other periodic fee, whether publicly or privately owned,
4571-
4572-
4573-but does not include parking spaces on a public street, the use
4574-of which is regulated by parking meters.
4575-(e) The Board may impose a Regional Transportation
4576-Authority Retailers' Occupation Tax upon all persons engaged
4577-in the business of selling tangible personal property at
4578-retail in the metropolitan region. In Cook County, the tax
4579-rate shall be 1.25% of the gross receipts from sales of food
4580-for human consumption that is to be consumed off the premises
4581-where it is sold (other than alcoholic beverages, food
4582-consisting of or infused with adult use cannabis, soft drinks,
4583-candy, and food that has been prepared for immediate
4584-consumption) and tangible personal property taxed at the 1%
4585-rate under the Retailers' Occupation Tax Act (or at the 0% rate
4586-imposed under this amendatory Act of the 102nd General
4587-Assembly), and 1% of the gross receipts from other taxable
4588-sales made in the course of that business. In DuPage, Kane,
4589-Lake, McHenry, and Will counties, the tax rate shall be 0.75%
4590-of the gross receipts from all taxable sales made in the course
4591-of that business. The rate of tax imposed in DuPage, Kane,
4592-Lake, McHenry, and Will counties under this Section on sales
4593-of aviation fuel on or after December 1, 2019 shall, however,
4594-be 0.25% unless the Regional Transportation Authority in
4595-DuPage, Kane, Lake, McHenry, and Will counties has an
4596-"airport-related purpose" and the additional 0.50% of the
4597-0.75% tax on aviation fuel is expended for airport-related
4598-purposes. If there is no airport-related purpose to which
4599-
4600-
4601-aviation fuel tax revenue is dedicated, then aviation fuel is
4602-excluded from the additional 0.50% of the 0.75% tax. The tax
4603-imposed under this Section and all civil penalties that may be
4604-assessed as an incident thereof shall be collected and
4605-enforced by the State Department of Revenue. The Department
4606-shall have full power to administer and enforce this Section;
4607-to collect all taxes and penalties so collected in the manner
4608-hereinafter provided; and to determine all rights to credit
4609-memoranda arising on account of the erroneous payment of tax
4610-or penalty hereunder. In the administration of, and compliance
4611-with this Section, the Department and persons who are subject
4612-to this Section shall have the same rights, remedies,
4613-privileges, immunities, powers, and duties, and be subject to
4614-the same conditions, restrictions, limitations, penalties,
4615-exclusions, exemptions, and definitions of terms, and employ
4616-the same modes of procedure, as are prescribed in Sections 1,
4617-1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
4618-all provisions therein other than the State rate of tax), 2c, 3
4619-(except as to the disposition of taxes and penalties
4620-collected, and except that the retailer's discount is not
4621-allowed for taxes paid on aviation fuel that are subject to the
4622-revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
4623-47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
4624-6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of the
4625-Retailers' Occupation Tax Act and Section 3-7 of the Uniform
4626-Penalty and Interest Act, as fully as if those provisions were
4627-
4628-
4629-set forth herein.
4630-The Board and DuPage, Kane, Lake, McHenry, and Will
4631-counties must comply with the certification requirements for
4632-airport-related purposes under Section 2-22 of the Retailers'
4633-Occupation Tax Act. For purposes of this Section,
4634-"airport-related purposes" has the meaning ascribed in Section
4635-6z-20.2 of the State Finance Act. This exclusion for aviation
4636-fuel only applies for so long as the revenue use requirements
4637-of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
4638-Authority.
4639-Persons subject to any tax imposed under the authority
4640-granted in this Section may reimburse themselves for their
4641-seller's tax liability hereunder by separately stating the tax
4642-as an additional charge, which charge may be stated in
4643-combination in a single amount with State taxes that sellers
4644-are required to collect under the Use Tax Act, under any
4645-bracket schedules the Department may prescribe.
4646-Whenever the Department determines that a refund should be
4647-made under this Section to a claimant instead of issuing a
4648-credit memorandum, the Department shall notify the State
4649-Comptroller, who shall cause the warrant to be drawn for the
4650-amount specified, and to the person named, in the notification
4651-from the Department. The refund shall be paid by the State
4652-Treasurer out of the Regional Transportation Authority tax
4653-fund established under paragraph (n) of this Section or the
4654-Local Government Aviation Trust Fund, as appropriate.
4655-
4656-
4657-If a tax is imposed under this subsection (e), a tax shall
4658-also be imposed under subsections (f) and (g) of this Section.
4659-For the purpose of determining whether a tax authorized
4660-under this Section is applicable, a retail sale by a producer
4661-of coal or other mineral mined in Illinois, is a sale at retail
4662-at the place where the coal or other mineral mined in Illinois
4663-is extracted from the earth. This paragraph does not apply to
4664-coal or other mineral when it is delivered or shipped by the
4665-seller to the purchaser at a point outside Illinois so that the
4666-sale is exempt under the Federal Constitution as a sale in
4667-interstate or foreign commerce.
4668-No tax shall be imposed or collected under this subsection
4669-on the sale of a motor vehicle in this State to a resident of
4670-another state if that motor vehicle will not be titled in this
4671-State.
4672-Nothing in this Section shall be construed to authorize
4673-the Regional Transportation Authority to impose a tax upon the
4674-privilege of engaging in any business that under the
4675-Constitution of the United States may not be made the subject
4676-of taxation by this State.
4677-(f) If a tax has been imposed under paragraph (e), a
4678-Regional Transportation Authority Service Occupation Tax shall
4679-also be imposed upon all persons engaged, in the metropolitan
4680-region in the business of making sales of service, who as an
4681-incident to making the sales of service, transfer tangible
4682-personal property within the metropolitan region, either in
4683-
4684-
4685-the form of tangible personal property or in the form of real
4686-estate as an incident to a sale of service. In Cook County, the
4687-tax rate shall be: (1) 1.25% of the serviceman's cost price of
4688-food prepared for immediate consumption and transferred
4689-incident to a sale of service subject to the service
4690-occupation tax by an entity that is located in the
4691-metropolitan region and that is licensed under the Hospital
4692-Licensing Act, the Nursing Home Care Act, the Assisted Living
4693-and Shared Housing Act, the Specialized Mental Health
4694-Rehabilitation Act of 2013, the ID/DD Community Care Act, or
4695-the MC/DD Act, or the Child Care Act of 1969, or an entity that
4696-holds a permit issued pursuant to the Life Care Facilities Act
4697-that is located in the metropolitan region; (2) 1.25% of the
4698-selling price of food for human consumption that is to be
4699-consumed off the premises where it is sold (other than
4700-alcoholic beverages, food consisting of or infused with adult
4701-use cannabis, soft drinks, candy, and food that has been
4702-prepared for immediate consumption) and tangible personal
4703-property taxed at the 1% rate under the Service Occupation Tax
4704-Act (or at the 0% rate imposed under this amendatory Act of the
4705-102nd General Assembly); and (3) 1% of the selling price from
4706-other taxable sales of tangible personal property transferred.
4707-In DuPage, Kane, Lake, McHenry, and Will counties, the rate
4708-shall be 0.75% of the selling price of all tangible personal
4709-property transferred. The rate of tax imposed in DuPage, Kane,
4710-Lake, McHenry, and Will counties under this Section on sales
4711-
4712-
4713-of aviation fuel on or after December 1, 2019 shall, however,
4714-be 0.25% unless the Regional Transportation Authority in
4715-DuPage, Kane, Lake, McHenry, and Will counties has an
4716-"airport-related purpose" and the additional 0.50% of the
4717-0.75% tax on aviation fuel is expended for airport-related
4718-purposes. If there is no airport-related purpose to which
4719-aviation fuel tax revenue is dedicated, then aviation fuel is
4720-excluded from the additional 0.5% of the 0.75% tax.
4721-The Board and DuPage, Kane, Lake, McHenry, and Will
4722-counties must comply with the certification requirements for
4723-airport-related purposes under Section 2-22 of the Retailers'
4724-Occupation Tax Act. For purposes of this Section,
4725-"airport-related purposes" has the meaning ascribed in Section
4726-6z-20.2 of the State Finance Act. This exclusion for aviation
4727-fuel only applies for so long as the revenue use requirements
4728-of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
4729-Authority.
4730-The tax imposed under this paragraph and all civil
4731-penalties that may be assessed as an incident thereof shall be
4732-collected and enforced by the State Department of Revenue. The
4733-Department shall have full power to administer and enforce
4734-this paragraph; to collect all taxes and penalties due
4735-hereunder; to dispose of taxes and penalties collected in the
4736-manner hereinafter provided; and to determine all rights to
4737-credit memoranda arising on account of the erroneous payment
4738-of tax or penalty hereunder. In the administration of and
4739-
4740-
4741-compliance with this paragraph, the Department and persons who
4742-are subject to this paragraph shall have the same rights,
4743-remedies, privileges, immunities, powers, and duties, and be
4744-subject to the same conditions, restrictions, limitations,
4745-penalties, exclusions, exemptions, and definitions of terms,
4746-and employ the same modes of procedure, as are prescribed in
4747-Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
4748-provisions therein other than the State rate of tax), 4
4749-(except that the reference to the State shall be to the
4750-Authority), 5, 7, 8 (except that the jurisdiction to which the
4751-tax shall be a debt to the extent indicated in that Section 8
4752-shall be the Authority), 9 (except as to the disposition of
4753-taxes and penalties collected, and except that the returned
4754-merchandise credit for this tax may not be taken against any
4755-State tax, and except that the retailer's discount is not
4756-allowed for taxes paid on aviation fuel that are subject to the
4757-revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
4758-47133), 10, 11, 12 (except the reference therein to Section 2b
4759-of the Retailers' Occupation Tax Act), 13 (except that any
4760-reference to the State shall mean the Authority), the first
4761-paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service
4762-Occupation Tax Act and Section 3-7 of the Uniform Penalty and
4763-Interest Act, as fully as if those provisions were set forth
4764-herein.
4765-Persons subject to any tax imposed under the authority
4766-granted in this paragraph may reimburse themselves for their
4767-
4768-
4769-serviceman's tax liability hereunder by separately stating the
4770-tax as an additional charge, that charge may be stated in
4771-combination in a single amount with State tax that servicemen
4772-are authorized to collect under the Service Use Tax Act, under
4773-any bracket schedules the Department may prescribe.
4774-Whenever the Department determines that a refund should be
4775-made under this paragraph to a claimant instead of issuing a
4776-credit memorandum, the Department shall notify the State
4777-Comptroller, who shall cause the warrant to be drawn for the
4778-amount specified, and to the person named in the notification
4779-from the Department. The refund shall be paid by the State
4780-Treasurer out of the Regional Transportation Authority tax
4781-fund established under paragraph (n) of this Section or the
4782-Local Government Aviation Trust Fund, as appropriate.
4783-Nothing in this paragraph shall be construed to authorize
4784-the Authority to impose a tax upon the privilege of engaging in
4785-any business that under the Constitution of the United States
4786-may not be made the subject of taxation by the State.
4787-(g) If a tax has been imposed under paragraph (e), a tax
4788-shall also be imposed upon the privilege of using in the
4789-metropolitan region, any item of tangible personal property
4790-that is purchased outside the metropolitan region at retail
4791-from a retailer, and that is titled or registered with an
4792-agency of this State's government. In Cook County, the tax
4793-rate shall be 1% of the selling price of the tangible personal
4794-property, as "selling price" is defined in the Use Tax Act. In
4795-
4796-
4797-DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
4798-shall be 0.75% of the selling price of the tangible personal
4799-property, as "selling price" is defined in the Use Tax Act. The
4800-tax shall be collected from persons whose Illinois address for
4801-titling or registration purposes is given as being in the
4802-metropolitan region. The tax shall be collected by the
4803-Department of Revenue for the Regional Transportation
4804-Authority. The tax must be paid to the State, or an exemption
4805-determination must be obtained from the Department of Revenue,
4806-before the title or certificate of registration for the
4807-property may be issued. The tax or proof of exemption may be
4808-transmitted to the Department by way of the State agency with
4809-which, or the State officer with whom, the tangible personal
4810-property must be titled or registered if the Department and
4811-the State agency or State officer determine that this
4812-procedure will expedite the processing of applications for
4813-title or registration.
4814-The Department shall have full power to administer and
4815-enforce this paragraph; to collect all taxes, penalties, and
4816-interest due hereunder; to dispose of taxes, penalties, and
4817-interest collected in the manner hereinafter provided; and to
4818-determine all rights to credit memoranda or refunds arising on
4819-account of the erroneous payment of tax, penalty, or interest
4820-hereunder. In the administration of and compliance with this
4821-paragraph, the Department and persons who are subject to this
4822-paragraph shall have the same rights, remedies, privileges,
4823-
4824-
4825-immunities, powers, and duties, and be subject to the same
4826-conditions, restrictions, limitations, penalties, exclusions,
4827-exemptions, and definitions of terms and employ the same modes
4828-of procedure, as are prescribed in Sections 2 (except the
4829-definition of "retailer maintaining a place of business in
4830-this State"), 3 through 3-80 (except provisions pertaining to
4831-the State rate of tax, and except provisions concerning
4832-collection or refunding of the tax by retailers), 4, 11, 12,
4833-12a, 14, 15, 19 (except the portions pertaining to claims by
4834-retailers and except the last paragraph concerning refunds),
4835-20, 21, and 22 of the Use Tax Act, and are not inconsistent
4836-with this paragraph, as fully as if those provisions were set
4837-forth herein.
4838-Whenever the Department determines that a refund should be
4839-made under this paragraph to a claimant instead of issuing a
4840-credit memorandum, the Department shall notify the State
4841-Comptroller, who shall cause the order to be drawn for the
4842-amount specified, and to the person named in the notification
4843-from the Department. The refund shall be paid by the State
4844-Treasurer out of the Regional Transportation Authority tax
4845-fund established under paragraph (n) of this Section.
4846-(h) The Authority may impose a replacement vehicle tax of
4847-$50 on any passenger car as defined in Section 1-157 of the
4848-Illinois Vehicle Code purchased within the metropolitan region
4849-by or on behalf of an insurance company to replace a passenger
4850-car of an insured person in settlement of a total loss claim.
4851-
4852-
4853-The tax imposed may not become effective before the first day
4854-of the month following the passage of the ordinance imposing
4855-the tax and receipt of a certified copy of the ordinance by the
4856-Department of Revenue. The Department of Revenue shall collect
4857-the tax for the Authority in accordance with Sections 3-2002
4858-and 3-2003 of the Illinois Vehicle Code.
4859-The Department shall immediately pay over to the State
4860-Treasurer, ex officio, as trustee, all taxes collected
4861-hereunder.
4862-As soon as possible after the first day of each month,
4863-beginning January 1, 2011, upon certification of the
4864-Department of Revenue, the Comptroller shall order
4865-transferred, and the Treasurer shall transfer, to the STAR
4866-Bonds Revenue Fund the local sales tax increment, as defined
4867-in the Innovation Development and Economy Act, collected under
4868-this Section during the second preceding calendar month for
4869-sales within a STAR bond district.
4870-After the monthly transfer to the STAR Bonds Revenue Fund,
4871-on or before the 25th day of each calendar month, the
4872-Department shall prepare and certify to the Comptroller the
4873-disbursement of stated sums of money to the Authority. The
4874-amount to be paid to the Authority shall be the amount
4875-collected hereunder during the second preceding calendar month
4876-by the Department, less any amount determined by the
4877-Department to be necessary for the payment of refunds, and
4878-less any amounts that are transferred to the STAR Bonds
4879-
4880-
4881-Revenue Fund. Within 10 days after receipt by the Comptroller
4882-of the disbursement certification to the Authority provided
4883-for in this Section to be given to the Comptroller by the
4884-Department, the Comptroller shall cause the orders to be drawn
4885-for that amount in accordance with the directions contained in
4886-the certification.
4887-(i) The Board may not impose any other taxes except as it
4888-may from time to time be authorized by law to impose.
4889-(j) A certificate of registration issued by the State
4890-Department of Revenue to a retailer under the Retailers'
4891-Occupation Tax Act or under the Service Occupation Tax Act
4892-shall permit the registrant to engage in a business that is
4893-taxed under the tax imposed under paragraphs (b), (e), (f) or
4894-(g) of this Section and no additional registration shall be
4895-required under the tax. A certificate issued under the Use Tax
4896-Act or the Service Use Tax Act shall be applicable with regard
4897-to any tax imposed under paragraph (c) of this Section.
4898-(k) The provisions of any tax imposed under paragraph (c)
4899-of this Section shall conform as closely as may be practicable
4900-to the provisions of the Use Tax Act, including without
4901-limitation conformity as to penalties with respect to the tax
4902-imposed and as to the powers of the State Department of Revenue
4903-to promulgate and enforce rules and regulations relating to
4904-the administration and enforcement of the provisions of the
4905-tax imposed. The taxes shall be imposed only on use within the
4906-metropolitan region and at rates as provided in the paragraph.
4907-
4908-
4909-(l) The Board in imposing any tax as provided in
4910-paragraphs (b) and (c) of this Section, shall, after seeking
4911-the advice of the State Department of Revenue, provide means
4912-for retailers, users or purchasers of motor fuel for purposes
4913-other than those with regard to which the taxes may be imposed
4914-as provided in those paragraphs to receive refunds of taxes
4915-improperly paid, which provisions may be at variance with the
4916-refund provisions as applicable under the Municipal Retailers
4917-Occupation Tax Act. The State Department of Revenue may
4918-provide for certificates of registration for users or
4919-purchasers of motor fuel for purposes other than those with
4920-regard to which taxes may be imposed as provided in paragraphs
4921-(b) and (c) of this Section to facilitate the reporting and
4922-nontaxability of the exempt sales or uses.
4923-(m) Any ordinance imposing or discontinuing any tax under
4924-this Section shall be adopted and a certified copy thereof
4925-filed with the Department on or before June 1, whereupon the
4926-Department of Revenue shall proceed to administer and enforce
4927-this Section on behalf of the Regional Transportation
4928-Authority as of September 1 next following such adoption and
4929-filing. Beginning January 1, 1992, an ordinance or resolution
4930-imposing or discontinuing the tax hereunder shall be adopted
4931-and a certified copy thereof filed with the Department on or
4932-before the first day of July, whereupon the Department shall
4933-proceed to administer and enforce this Section as of the first
4934-day of October next following such adoption and filing.
4935-
4936-
4937-Beginning January 1, 1993, an ordinance or resolution
4938-imposing, increasing, decreasing, or discontinuing the tax
4939-hereunder shall be adopted and a certified copy thereof filed
4940-with the Department, whereupon the Department shall proceed to
4941-administer and enforce this Section as of the first day of the
4942-first month to occur not less than 60 days following such
4943-adoption and filing. Any ordinance or resolution of the
4944-Authority imposing a tax under this Section and in effect on
4945-August 1, 2007 shall remain in full force and effect and shall
4946-be administered by the Department of Revenue under the terms
4947-and conditions and rates of tax established by such ordinance
4948-or resolution until the Department begins administering and
4949-enforcing an increased tax under this Section as authorized by
4950-Public Act 95-708. The tax rates authorized by Public Act
4951-95-708 are effective only if imposed by ordinance of the
4952-Authority.
4953-(n) Except as otherwise provided in this subsection (n),
4954-the State Department of Revenue shall, upon collecting any
4955-taxes as provided in this Section, pay the taxes over to the
4956-State Treasurer as trustee for the Authority. The taxes shall
4957-be held in a trust fund outside the State Treasury. If an
4958-airport-related purpose has been certified, taxes and
4959-penalties collected in DuPage, Kane, Lake, McHenry and Will
4960-counties on aviation fuel sold on or after December 1, 2019
4961-from the 0.50% of the 0.75% rate shall be immediately paid over
4962-by the Department to the State Treasurer, ex officio, as
4963-
4964-
4965-trustee, for deposit into the Local Government Aviation Trust
4966-Fund. The Department shall only pay moneys into the Local
4967-Government Aviation Trust Fund under this Act for so long as
4968-the revenue use requirements of 49 U.S.C. 47107(b) and 49
4969-U.S.C. 47133 are binding on the Authority. On or before the
4970-25th day of each calendar month, the State Department of
4971-Revenue shall prepare and certify to the Comptroller of the
4972-State of Illinois and to the Authority (i) the amount of taxes
4973-collected in each county other than Cook County in the
4974-metropolitan region, (not including, if an airport-related
4975-purpose has been certified, the taxes and penalties collected
4976-from the 0.50% of the 0.75% rate on aviation fuel sold on or
4977-after December 1, 2019 that are deposited into the Local
4978-Government Aviation Trust Fund) (ii) the amount of taxes
4979-collected within the City of Chicago, and (iii) the amount
4980-collected in that portion of Cook County outside of Chicago,
4981-each amount less the amount necessary for the payment of
4982-refunds to taxpayers located in those areas described in items
4983-(i), (ii), and (iii), and less 1.5% of the remainder, which
4984-shall be transferred from the trust fund into the Tax
4985-Compliance and Administration Fund. The Department, at the
4986-time of each monthly disbursement to the Authority, shall
4987-prepare and certify to the State Comptroller the amount to be
4988-transferred into the Tax Compliance and Administration Fund
4989-under this subsection. Within 10 days after receipt by the
4990-Comptroller of the certification of the amounts, the
4991-
4992-
4993-Comptroller shall cause an order to be drawn for the transfer
4994-of the amount certified into the Tax Compliance and
4995-Administration Fund and the payment of two-thirds of the
4996-amounts certified in item (i) of this subsection to the
4997-Authority and one-third of the amounts certified in item (i)
4998-of this subsection to the respective counties other than Cook
4999-County and the amount certified in items (ii) and (iii) of this
5000-subsection to the Authority.
5001-In addition to the disbursement required by the preceding
5002-paragraph, an allocation shall be made in July 1991 and each
5003-year thereafter to the Regional Transportation Authority. The
5004-allocation shall be made in an amount equal to the average
5005-monthly distribution during the preceding calendar year
5006-(excluding the 2 months of lowest receipts) and the allocation
5007-shall include the amount of average monthly distribution from
5008-the Regional Transportation Authority Occupation and Use Tax
5009-Replacement Fund. The distribution made in July 1992 and each
5010-year thereafter under this paragraph and the preceding
5011-paragraph shall be reduced by the amount allocated and
5012-disbursed under this paragraph in the preceding calendar year.
5013-The Department of Revenue shall prepare and certify to the
5014-Comptroller for disbursement the allocations made in
5015-accordance with this paragraph.
5016-(o) Failure to adopt a budget ordinance or otherwise to
5017-comply with Section 4.01 of this Act or to adopt a Five-year
5018-Capital Program or otherwise to comply with paragraph (b) of
5019-
5020-
5021-Section 2.01 of this Act shall not affect the validity of any
5022-tax imposed by the Authority otherwise in conformity with law.
5023-(p) At no time shall a public transportation tax or motor
5024-vehicle parking tax authorized under paragraphs (b), (c), and
5025-(d) of this Section be in effect at the same time as any
5026-retailers' occupation, use or service occupation tax
5027-authorized under paragraphs (e), (f), and (g) of this Section
5028-is in effect.
5029-Any taxes imposed under the authority provided in
5030-paragraphs (b), (c), and (d) shall remain in effect only until
5031-the time as any tax authorized by paragraph (e), (f), or (g) of
5032-this Section are imposed and becomes effective. Once any tax
5033-authorized by paragraph (e), (f), or (g) is imposed the Board
5034-may not reimpose taxes as authorized in paragraphs (b), (c),
5035-and (d) of the Section unless any tax authorized by paragraph
5036-(e), (f), or (g) of this Section becomes ineffective by means
5037-other than an ordinance of the Board.
5038-(q) Any existing rights, remedies and obligations
5039-(including enforcement by the Regional Transportation
5040-Authority) arising under any tax imposed under paragraph (b),
5041-(c), or (d) of this Section shall not be affected by the
5042-imposition of a tax under paragraph (e), (f), or (g) of this
5043-Section.
5044-(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
5045-101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
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34+1 support of arts or cultural programming, activities, or
35+2 services. These organizations include, but are not limited to,
36+3 music and dramatic arts organizations such as symphony
37+4 orchestras and theatrical groups, arts and cultural service
38+5 organizations, local arts councils, visual arts organizations,
39+6 and media arts organizations. On and after July 1, 2001 (the
40+7 effective date of Public Act 92-35), however, an entity
41+8 otherwise eligible for this exemption shall not make tax-free
42+9 purchases unless it has an active identification number issued
43+10 by the Department.
44+11 (4) Except as otherwise provided in this Act, personal
45+12 property purchased by a governmental body, by a corporation,
46+13 society, association, foundation, or institution organized and
47+14 operated exclusively for charitable, religious, or educational
48+15 purposes, or by a not-for-profit corporation, society,
49+16 association, foundation, institution, or organization that has
50+17 no compensated officers or employees and that is organized and
51+18 operated primarily for the recreation of persons 55 years of
52+19 age or older. A limited liability company may qualify for the
53+20 exemption under this paragraph only if the limited liability
54+21 company is organized and operated exclusively for educational
55+22 purposes. On and after July 1, 1987, however, no entity
56+23 otherwise eligible for this exemption shall make tax-free
57+24 purchases unless it has an active exemption identification
58+25 number issued by the Department.
59+26 (5) Until July 1, 2003, a passenger car that is a
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70+1 replacement vehicle to the extent that the purchase price of
71+2 the car is subject to the Replacement Vehicle Tax.
72+3 (6) Until July 1, 2003 and beginning again on September 1,
73+4 2004 through August 30, 2014, graphic arts machinery and
74+5 equipment, including repair and replacement parts, both new
75+6 and used, and including that manufactured on special order,
76+7 certified by the purchaser to be used primarily for graphic
77+8 arts production, and including machinery and equipment
78+9 purchased for lease. Equipment includes chemicals or chemicals
79+10 acting as catalysts but only if the chemicals or chemicals
80+11 acting as catalysts effect a direct and immediate change upon
81+12 a graphic arts product. Beginning on July 1, 2017, graphic
82+13 arts machinery and equipment is included in the manufacturing
83+14 and assembling machinery and equipment exemption under
84+15 paragraph (18).
85+16 (7) Farm chemicals.
86+17 (8) Legal tender, currency, medallions, or gold or silver
87+18 coinage issued by the State of Illinois, the government of the
88+19 United States of America, or the government of any foreign
89+20 country, and bullion.
90+21 (9) Personal property purchased from a teacher-sponsored
91+22 student organization affiliated with an elementary or
92+23 secondary school located in Illinois.
93+24 (10) A motor vehicle that is used for automobile renting,
94+25 as defined in the Automobile Renting Occupation and Use Tax
95+26 Act.
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106+1 (11) Farm machinery and equipment, both new and used,
107+2 including that manufactured on special order, certified by the
108+3 purchaser to be used primarily for production agriculture or
109+4 State or federal agricultural programs, including individual
110+5 replacement parts for the machinery and equipment, including
111+6 machinery and equipment purchased for lease, and including
112+7 implements of husbandry defined in Section 1-130 of the
113+8 Illinois Vehicle Code, farm machinery and agricultural
114+9 chemical and fertilizer spreaders, and nurse wagons required
115+10 to be registered under Section 3-809 of the Illinois Vehicle
116+11 Code, but excluding other motor vehicles required to be
117+12 registered under the Illinois Vehicle Code. Horticultural
118+13 polyhouses or hoop houses used for propagating, growing, or
119+14 overwintering plants shall be considered farm machinery and
120+15 equipment under this item (11). Agricultural chemical tender
121+16 tanks and dry boxes shall include units sold separately from a
122+17 motor vehicle required to be licensed and units sold mounted
123+18 on a motor vehicle required to be licensed if the selling price
124+19 of the tender is separately stated.
125+20 Farm machinery and equipment shall include precision
126+21 farming equipment that is installed or purchased to be
127+22 installed on farm machinery and equipment, including, but not
128+23 limited to, tractors, harvesters, sprayers, planters, seeders,
129+24 or spreaders. Precision farming equipment includes, but is not
130+25 limited to, soil testing sensors, computers, monitors,
131+26 software, global positioning and mapping systems, and other
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142+1 such equipment.
143+2 Farm machinery and equipment also includes computers,
144+3 sensors, software, and related equipment used primarily in the
145+4 computer-assisted operation of production agriculture
146+5 facilities, equipment, and activities such as, but not limited
147+6 to, the collection, monitoring, and correlation of animal and
148+7 crop data for the purpose of formulating animal diets and
149+8 agricultural chemicals.
150+9 Beginning on January 1, 2024, farm machinery and equipment
151+10 also includes electrical power generation equipment used
152+11 primarily for production agriculture.
153+12 This item (11) is exempt from the provisions of Section
154+13 3-90.
155+14 (12) Until June 30, 2013, fuel and petroleum products sold
156+15 to or used by an air common carrier, certified by the carrier
157+16 to be used for consumption, shipment, or storage in the
158+17 conduct of its business as an air common carrier, for a flight
159+18 destined for or returning from a location or locations outside
160+19 the United States without regard to previous or subsequent
161+20 domestic stopovers.
162+21 Beginning July 1, 2013, fuel and petroleum products sold
163+22 to or used by an air carrier, certified by the carrier to be
164+23 used for consumption, shipment, or storage in the conduct of
165+24 its business as an air common carrier, for a flight that (i) is
166+25 engaged in foreign trade or is engaged in trade between the
167+26 United States and any of its possessions and (ii) transports
168+
169+
170+
171+
172+
173+ HB3144 Enrolled - 5 - LRB103 26309 HLH 52670 b
174+
175+
176+HB3144 Enrolled- 6 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 6 - LRB103 26309 HLH 52670 b
177+ HB3144 Enrolled - 6 - LRB103 26309 HLH 52670 b
178+1 at least one individual or package for hire from the city of
179+2 origination to the city of final destination on the same
180+3 aircraft, without regard to a change in the flight number of
181+4 that aircraft.
182+5 (13) Proceeds of mandatory service charges separately
183+6 stated on customers' bills for the purchase and consumption of
184+7 food and beverages purchased at retail from a retailer, to the
185+8 extent that the proceeds of the service charge are in fact
186+9 turned over as tips or as a substitute for tips to the
187+10 employees who participate directly in preparing, serving,
188+11 hosting or cleaning up the food or beverage function with
189+12 respect to which the service charge is imposed.
190+13 (14) Until July 1, 2003, oil field exploration, drilling,
191+14 and production equipment, including (i) rigs and parts of
192+15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
193+16 pipe and tubular goods, including casing and drill strings,
194+17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
195+18 lines, (v) any individual replacement part for oil field
196+19 exploration, drilling, and production equipment, and (vi)
197+20 machinery and equipment purchased for lease; but excluding
198+21 motor vehicles required to be registered under the Illinois
199+22 Vehicle Code.
200+23 (15) Photoprocessing machinery and equipment, including
201+24 repair and replacement parts, both new and used, including
202+25 that manufactured on special order, certified by the purchaser
203+26 to be used primarily for photoprocessing, and including
204+
205+
206+
207+
208+
209+ HB3144 Enrolled - 6 - LRB103 26309 HLH 52670 b
210+
211+
212+HB3144 Enrolled- 7 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 7 - LRB103 26309 HLH 52670 b
213+ HB3144 Enrolled - 7 - LRB103 26309 HLH 52670 b
214+1 photoprocessing machinery and equipment purchased for lease.
215+2 (16) Until July 1, 2028, coal and aggregate exploration,
216+3 mining, off-highway hauling, processing, maintenance, and
217+4 reclamation equipment, including replacement parts and
218+5 equipment, and including equipment purchased for lease, but
219+6 excluding motor vehicles required to be registered under the
220+7 Illinois Vehicle Code. The changes made to this Section by
221+8 Public Act 97-767 apply on and after July 1, 2003, but no claim
222+9 for credit or refund is allowed on or after August 16, 2013
223+10 (the effective date of Public Act 98-456) for such taxes paid
224+11 during the period beginning July 1, 2003 and ending on August
225+12 16, 2013 (the effective date of Public Act 98-456).
226+13 (17) Until July 1, 2003, distillation machinery and
227+14 equipment, sold as a unit or kit, assembled or installed by the
228+15 retailer, certified by the user to be used only for the
229+16 production of ethyl alcohol that will be used for consumption
230+17 as motor fuel or as a component of motor fuel for the personal
231+18 use of the user, and not subject to sale or resale.
232+19 (18) Manufacturing and assembling machinery and equipment
233+20 used primarily in the process of manufacturing or assembling
234+21 tangible personal property for wholesale or retail sale or
235+22 lease, whether that sale or lease is made directly by the
236+23 manufacturer or by some other person, whether the materials
237+24 used in the process are owned by the manufacturer or some other
238+25 person, or whether that sale or lease is made apart from or as
239+26 an incident to the seller's engaging in the service occupation
240+
241+
242+
243+
244+
245+ HB3144 Enrolled - 7 - LRB103 26309 HLH 52670 b
246+
247+
248+HB3144 Enrolled- 8 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 8 - LRB103 26309 HLH 52670 b
249+ HB3144 Enrolled - 8 - LRB103 26309 HLH 52670 b
250+1 of producing machines, tools, dies, jigs, patterns, gauges, or
251+2 other similar items of no commercial value on special order
252+3 for a particular purchaser. The exemption provided by this
253+4 paragraph (18) includes production related tangible personal
254+5 property, as defined in Section 3-50, purchased on or after
255+6 July 1, 2019. The exemption provided by this paragraph (18)
256+7 does not include machinery and equipment used in (i) the
257+8 generation of electricity for wholesale or retail sale; (ii)
258+9 the generation or treatment of natural or artificial gas for
259+10 wholesale or retail sale that is delivered to customers
260+11 through pipes, pipelines, or mains; or (iii) the treatment of
261+12 water for wholesale or retail sale that is delivered to
262+13 customers through pipes, pipelines, or mains. The provisions
263+14 of Public Act 98-583 are declaratory of existing law as to the
264+15 meaning and scope of this exemption. Beginning on July 1,
265+16 2017, the exemption provided by this paragraph (18) includes,
266+17 but is not limited to, graphic arts machinery and equipment,
267+18 as defined in paragraph (6) of this Section.
268+19 (19) Personal property delivered to a purchaser or
269+20 purchaser's donee inside Illinois when the purchase order for
270+21 that personal property was received by a florist located
271+22 outside Illinois who has a florist located inside Illinois
272+23 deliver the personal property.
273+24 (20) Semen used for artificial insemination of livestock
274+25 for direct agricultural production.
275+26 (21) Horses, or interests in horses, registered with and
276+
277+
278+
279+
280+
281+ HB3144 Enrolled - 8 - LRB103 26309 HLH 52670 b
282+
283+
284+HB3144 Enrolled- 9 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 9 - LRB103 26309 HLH 52670 b
285+ HB3144 Enrolled - 9 - LRB103 26309 HLH 52670 b
286+1 meeting the requirements of any of the Arabian Horse Club
287+2 Registry of America, Appaloosa Horse Club, American Quarter
288+3 Horse Association, United States Trotting Association, or
289+4 Jockey Club, as appropriate, used for purposes of breeding or
290+5 racing for prizes. This item (21) is exempt from the
291+6 provisions of Section 3-90, and the exemption provided for
292+7 under this item (21) applies for all periods beginning May 30,
293+8 1995, but no claim for credit or refund is allowed on or after
294+9 January 1, 2008 for such taxes paid during the period
295+10 beginning May 30, 2000 and ending on January 1, 2008.
296+11 (22) Computers and communications equipment utilized for
297+12 any hospital purpose and equipment used in the diagnosis,
298+13 analysis, or treatment of hospital patients purchased by a
299+14 lessor who leases the equipment, under a lease of one year or
300+15 longer executed or in effect at the time the lessor would
301+16 otherwise be subject to the tax imposed by this Act, to a
302+17 hospital that has been issued an active tax exemption
303+18 identification number by the Department under Section 1g of
304+19 the Retailers' Occupation Tax Act. If the equipment is leased
305+20 in a manner that does not qualify for this exemption or is used
306+21 in any other non-exempt manner, the lessor shall be liable for
307+22 the tax imposed under this Act or the Service Use Tax Act, as
308+23 the case may be, based on the fair market value of the property
309+24 at the time the non-qualifying use occurs. No lessor shall
310+25 collect or attempt to collect an amount (however designated)
311+26 that purports to reimburse that lessor for the tax imposed by
312+
313+
314+
315+
316+
317+ HB3144 Enrolled - 9 - LRB103 26309 HLH 52670 b
318+
319+
320+HB3144 Enrolled- 10 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 10 - LRB103 26309 HLH 52670 b
321+ HB3144 Enrolled - 10 - LRB103 26309 HLH 52670 b
322+1 this Act or the Service Use Tax Act, as the case may be, if the
323+2 tax has not been paid by the lessor. If a lessor improperly
324+3 collects any such amount from the lessee, the lessee shall
325+4 have a legal right to claim a refund of that amount from the
326+5 lessor. If, however, that amount is not refunded to the lessee
327+6 for any reason, the lessor is liable to pay that amount to the
328+7 Department.
329+8 (23) Personal property purchased by a lessor who leases
330+9 the property, under a lease of one year or longer executed or
331+10 in effect at the time the lessor would otherwise be subject to
332+11 the tax imposed by this Act, to a governmental body that has
333+12 been issued an active sales tax exemption identification
334+13 number by the Department under Section 1g of the Retailers'
335+14 Occupation Tax Act. If the property is leased in a manner that
336+15 does not qualify for this exemption or used in any other
337+16 non-exempt manner, the lessor shall be liable for the tax
338+17 imposed under this Act or the Service Use Tax Act, as the case
339+18 may be, based on the fair market value of the property at the
340+19 time the non-qualifying use occurs. No lessor shall collect or
341+20 attempt to collect an amount (however designated) that
342+21 purports to reimburse that lessor for the tax imposed by this
343+22 Act or the Service Use Tax Act, as the case may be, if the tax
344+23 has not been paid by the lessor. If a lessor improperly
345+24 collects any such amount from the lessee, the lessee shall
346+25 have a legal right to claim a refund of that amount from the
347+26 lessor. If, however, that amount is not refunded to the lessee
348+
349+
350+
351+
352+
353+ HB3144 Enrolled - 10 - LRB103 26309 HLH 52670 b
354+
355+
356+HB3144 Enrolled- 11 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 11 - LRB103 26309 HLH 52670 b
357+ HB3144 Enrolled - 11 - LRB103 26309 HLH 52670 b
358+1 for any reason, the lessor is liable to pay that amount to the
359+2 Department.
360+3 (24) Beginning with taxable years ending on or after
361+4 December 31, 1995 and ending with taxable years ending on or
362+5 before December 31, 2004, personal property that is donated
363+6 for disaster relief to be used in a State or federally declared
364+7 disaster area in Illinois or bordering Illinois by a
365+8 manufacturer or retailer that is registered in this State to a
366+9 corporation, society, association, foundation, or institution
367+10 that has been issued a sales tax exemption identification
368+11 number by the Department that assists victims of the disaster
369+12 who reside within the declared disaster area.
370+13 (25) Beginning with taxable years ending on or after
371+14 December 31, 1995 and ending with taxable years ending on or
372+15 before December 31, 2004, personal property that is used in
373+16 the performance of infrastructure repairs in this State,
374+17 including, but not limited to, municipal roads and streets,
375+18 access roads, bridges, sidewalks, waste disposal systems,
376+19 water and sewer line extensions, water distribution and
377+20 purification facilities, storm water drainage and retention
378+21 facilities, and sewage treatment facilities, resulting from a
379+22 State or federally declared disaster in Illinois or bordering
380+23 Illinois when such repairs are initiated on facilities located
381+24 in the declared disaster area within 6 months after the
382+25 disaster.
383+26 (26) Beginning July 1, 1999, game or game birds purchased
384+
385+
386+
387+
388+
389+ HB3144 Enrolled - 11 - LRB103 26309 HLH 52670 b
390+
391+
392+HB3144 Enrolled- 12 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 12 - LRB103 26309 HLH 52670 b
393+ HB3144 Enrolled - 12 - LRB103 26309 HLH 52670 b
394+1 at a "game breeding and hunting preserve area" as that term is
395+2 used in the Wildlife Code. This paragraph is exempt from the
396+3 provisions of Section 3-90.
397+4 (27) A motor vehicle, as that term is defined in Section
398+5 1-146 of the Illinois Vehicle Code, that is donated to a
399+6 corporation, limited liability company, society, association,
400+7 foundation, or institution that is determined by the
401+8 Department to be organized and operated exclusively for
402+9 educational purposes. For purposes of this exemption, "a
403+10 corporation, limited liability company, society, association,
404+11 foundation, or institution organized and operated exclusively
405+12 for educational purposes" means all tax-supported public
406+13 schools, private schools that offer systematic instruction in
407+14 useful branches of learning by methods common to public
408+15 schools and that compare favorably in their scope and
409+16 intensity with the course of study presented in tax-supported
410+17 schools, and vocational or technical schools or institutes
411+18 organized and operated exclusively to provide a course of
412+19 study of not less than 6 weeks duration and designed to prepare
413+20 individuals to follow a trade or to pursue a manual,
414+21 technical, mechanical, industrial, business, or commercial
415+22 occupation.
416+23 (28) Beginning January 1, 2000, personal property,
417+24 including food, purchased through fundraising events for the
418+25 benefit of a public or private elementary or secondary school,
419+26 a group of those schools, or one or more school districts if
420+
421+
422+
423+
424+
425+ HB3144 Enrolled - 12 - LRB103 26309 HLH 52670 b
426+
427+
428+HB3144 Enrolled- 13 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 13 - LRB103 26309 HLH 52670 b
429+ HB3144 Enrolled - 13 - LRB103 26309 HLH 52670 b
430+1 the events are sponsored by an entity recognized by the school
431+2 district that consists primarily of volunteers and includes
432+3 parents and teachers of the school children. This paragraph
433+4 does not apply to fundraising events (i) for the benefit of
434+5 private home instruction or (ii) for which the fundraising
435+6 entity purchases the personal property sold at the events from
436+7 another individual or entity that sold the property for the
437+8 purpose of resale by the fundraising entity and that profits
438+9 from the sale to the fundraising entity. This paragraph is
439+10 exempt from the provisions of Section 3-90.
440+11 (29) Beginning January 1, 2000 and through December 31,
441+12 2001, new or used automatic vending machines that prepare and
442+13 serve hot food and beverages, including coffee, soup, and
443+14 other items, and replacement parts for these machines.
444+15 Beginning January 1, 2002 and through June 30, 2003, machines
445+16 and parts for machines used in commercial, coin-operated
446+17 amusement and vending business if a use or occupation tax is
447+18 paid on the gross receipts derived from the use of the
448+19 commercial, coin-operated amusement and vending machines. This
449+20 paragraph is exempt from the provisions of Section 3-90.
450+21 (30) Beginning January 1, 2001 and through June 30, 2016,
451+22 food for human consumption that is to be consumed off the
452+23 premises where it is sold (other than alcoholic beverages,
453+24 soft drinks, and food that has been prepared for immediate
454+25 consumption) and prescription and nonprescription medicines,
455+26 drugs, medical appliances, and insulin, urine testing
456+
457+
458+
459+
460+
461+ HB3144 Enrolled - 13 - LRB103 26309 HLH 52670 b
462+
463+
464+HB3144 Enrolled- 14 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 14 - LRB103 26309 HLH 52670 b
465+ HB3144 Enrolled - 14 - LRB103 26309 HLH 52670 b
466+1 materials, syringes, and needles used by diabetics, for human
467+2 use, when purchased for use by a person receiving medical
468+3 assistance under Article V of the Illinois Public Aid Code who
469+4 resides in a licensed long-term care facility, as defined in
470+5 the Nursing Home Care Act, or in a licensed facility as defined
471+6 in the ID/DD Community Care Act, the MC/DD Act, or the
472+7 Specialized Mental Health Rehabilitation Act of 2013.
473+8 (31) Beginning on August 2, 2001 (the effective date of
474+9 Public Act 92-227), computers and communications equipment
475+10 utilized for any hospital purpose and equipment used in the
476+11 diagnosis, analysis, or treatment of hospital patients
477+12 purchased by a lessor who leases the equipment, under a lease
478+13 of one year or longer executed or in effect at the time the
479+14 lessor would otherwise be subject to the tax imposed by this
480+15 Act, to a hospital that has been issued an active tax exemption
481+16 identification number by the Department under Section 1g of
482+17 the Retailers' Occupation Tax Act. If the equipment is leased
483+18 in a manner that does not qualify for this exemption or is used
484+19 in any other nonexempt manner, the lessor shall be liable for
485+20 the tax imposed under this Act or the Service Use Tax Act, as
486+21 the case may be, based on the fair market value of the property
487+22 at the time the nonqualifying use occurs. No lessor shall
488+23 collect or attempt to collect an amount (however designated)
489+24 that purports to reimburse that lessor for the tax imposed by
490+25 this Act or the Service Use Tax Act, as the case may be, if the
491+26 tax has not been paid by the lessor. If a lessor improperly
492+
493+
494+
495+
496+
497+ HB3144 Enrolled - 14 - LRB103 26309 HLH 52670 b
498+
499+
500+HB3144 Enrolled- 15 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 15 - LRB103 26309 HLH 52670 b
501+ HB3144 Enrolled - 15 - LRB103 26309 HLH 52670 b
502+1 collects any such amount from the lessee, the lessee shall
503+2 have a legal right to claim a refund of that amount from the
504+3 lessor. If, however, that amount is not refunded to the lessee
505+4 for any reason, the lessor is liable to pay that amount to the
506+5 Department. This paragraph is exempt from the provisions of
507+6 Section 3-90.
508+7 (32) Beginning on August 2, 2001 (the effective date of
509+8 Public Act 92-227), personal property purchased by a lessor
510+9 who leases the property, under a lease of one year or longer
511+10 executed or in effect at the time the lessor would otherwise be
512+11 subject to the tax imposed by this Act, to a governmental body
513+12 that has been issued an active sales tax exemption
514+13 identification number by the Department under Section 1g of
515+14 the Retailers' Occupation Tax Act. If the property is leased
516+15 in a manner that does not qualify for this exemption or used in
517+16 any other nonexempt manner, the lessor shall be liable for the
518+17 tax imposed under this Act or the Service Use Tax Act, as the
519+18 case may be, based on the fair market value of the property at
520+19 the time the nonqualifying use occurs. No lessor shall collect
521+20 or attempt to collect an amount (however designated) that
522+21 purports to reimburse that lessor for the tax imposed by this
523+22 Act or the Service Use Tax Act, as the case may be, if the tax
524+23 has not been paid by the lessor. If a lessor improperly
525+24 collects any such amount from the lessee, the lessee shall
526+25 have a legal right to claim a refund of that amount from the
527+26 lessor. If, however, that amount is not refunded to the lessee
528+
529+
530+
531+
532+
533+ HB3144 Enrolled - 15 - LRB103 26309 HLH 52670 b
534+
535+
536+HB3144 Enrolled- 16 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 16 - LRB103 26309 HLH 52670 b
537+ HB3144 Enrolled - 16 - LRB103 26309 HLH 52670 b
538+1 for any reason, the lessor is liable to pay that amount to the
539+2 Department. This paragraph is exempt from the provisions of
540+3 Section 3-90.
541+4 (33) On and after July 1, 2003 and through June 30, 2004,
542+5 the use in this State of motor vehicles of the second division
543+6 with a gross vehicle weight in excess of 8,000 pounds and that
544+7 are subject to the commercial distribution fee imposed under
545+8 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
546+9 July 1, 2004 and through June 30, 2005, the use in this State
547+10 of motor vehicles of the second division: (i) with a gross
548+11 vehicle weight rating in excess of 8,000 pounds; (ii) that are
549+12 subject to the commercial distribution fee imposed under
550+13 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
551+14 are primarily used for commercial purposes. Through June 30,
552+15 2005, this exemption applies to repair and replacement parts
553+16 added after the initial purchase of such a motor vehicle if
554+17 that motor vehicle is used in a manner that would qualify for
555+18 the rolling stock exemption otherwise provided for in this
556+19 Act. For purposes of this paragraph, the term "used for
557+20 commercial purposes" means the transportation of persons or
558+21 property in furtherance of any commercial or industrial
559+22 enterprise, whether for-hire or not.
560+23 (34) Beginning January 1, 2008, tangible personal property
561+24 used in the construction or maintenance of a community water
562+25 supply, as defined under Section 3.145 of the Environmental
563+26 Protection Act, that is operated by a not-for-profit
564+
565+
566+
567+
568+
569+ HB3144 Enrolled - 16 - LRB103 26309 HLH 52670 b
570+
571+
572+HB3144 Enrolled- 17 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 17 - LRB103 26309 HLH 52670 b
573+ HB3144 Enrolled - 17 - LRB103 26309 HLH 52670 b
574+1 corporation that holds a valid water supply permit issued
575+2 under Title IV of the Environmental Protection Act. This
576+3 paragraph is exempt from the provisions of Section 3-90.
577+4 (35) Beginning January 1, 2010 and continuing through
578+5 December 31, 2029, materials, parts, equipment, components,
579+6 and furnishings incorporated into or upon an aircraft as part
580+7 of the modification, refurbishment, completion, replacement,
581+8 repair, or maintenance of the aircraft. This exemption
582+9 includes consumable supplies used in the modification,
583+10 refurbishment, completion, replacement, repair, and
584+11 maintenance of aircraft. However, until January 1, 2024, this
585+12 exemption excludes any materials, parts, equipment,
586+13 components, and consumable supplies used in the modification,
587+14 replacement, repair, and maintenance of aircraft engines or
588+15 power plants, whether such engines or power plants are
589+16 installed or uninstalled upon any such aircraft. "Consumable
590+17 supplies" include, but are not limited to, adhesive, tape,
591+18 sandpaper, general purpose lubricants, cleaning solution,
592+19 latex gloves, and protective films.
593+20 Beginning January 1, 2010 and continuing through December
594+21 31, 2023, this exemption applies only to the use of qualifying
595+22 tangible personal property by persons who modify, refurbish,
596+23 complete, repair, replace, or maintain aircraft and who (i)
597+24 hold an Air Agency Certificate and are empowered to operate an
598+25 approved repair station by the Federal Aviation
599+26 Administration, (ii) have a Class IV Rating, and (iii) conduct
600+
601+
602+
603+
604+
605+ HB3144 Enrolled - 17 - LRB103 26309 HLH 52670 b
606+
607+
608+HB3144 Enrolled- 18 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 18 - LRB103 26309 HLH 52670 b
609+ HB3144 Enrolled - 18 - LRB103 26309 HLH 52670 b
610+1 operations in accordance with Part 145 of the Federal Aviation
611+2 Regulations. From January 1, 2024 through December 31, 2029,
612+3 this exemption applies only to the use of qualifying tangible
613+4 personal property by: (A) persons who modify, refurbish,
614+5 complete, repair, replace, or maintain aircraft and who (i)
615+6 hold an Air Agency Certificate and are empowered to operate an
616+7 approved repair station by the Federal Aviation
617+8 Administration, (ii) have a Class IV Rating, and (iii) conduct
618+9 operations in accordance with Part 145 of the Federal Aviation
619+10 Regulations; and (B) persons who engage in the modification,
620+11 replacement, repair, and maintenance of aircraft engines or
621+12 power plants without regard to whether or not those persons
622+13 meet the qualifications of item (A).
623+14 The exemption does not include aircraft operated by a
624+15 commercial air carrier providing scheduled passenger air
625+16 service pursuant to authority issued under Part 121 or Part
626+17 129 of the Federal Aviation Regulations. The changes made to
627+18 this paragraph (35) by Public Act 98-534 are declarative of
628+19 existing law. It is the intent of the General Assembly that the
629+20 exemption under this paragraph (35) applies continuously from
630+21 January 1, 2010 through December 31, 2024; however, no claim
631+22 for credit or refund is allowed for taxes paid as a result of
632+23 the disallowance of this exemption on or after January 1, 2015
633+24 and prior to February 5, 2020 (the effective date of Public Act
634+25 101-629).
635+26 (36) Tangible personal property purchased by a
636+
637+
638+
639+
640+
641+ HB3144 Enrolled - 18 - LRB103 26309 HLH 52670 b
642+
643+
644+HB3144 Enrolled- 19 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 19 - LRB103 26309 HLH 52670 b
645+ HB3144 Enrolled - 19 - LRB103 26309 HLH 52670 b
646+1 public-facilities corporation, as described in Section
647+2 11-65-10 of the Illinois Municipal Code, for purposes of
648+3 constructing or furnishing a municipal convention hall, but
649+4 only if the legal title to the municipal convention hall is
650+5 transferred to the municipality without any further
651+6 consideration by or on behalf of the municipality at the time
652+7 of the completion of the municipal convention hall or upon the
653+8 retirement or redemption of any bonds or other debt
654+9 instruments issued by the public-facilities corporation in
655+10 connection with the development of the municipal convention
656+11 hall. This exemption includes existing public-facilities
657+12 corporations as provided in Section 11-65-25 of the Illinois
658+13 Municipal Code. This paragraph is exempt from the provisions
659+14 of Section 3-90.
660+15 (37) Beginning January 1, 2017 and through December 31,
661+16 2026, menstrual pads, tampons, and menstrual cups.
662+17 (38) Merchandise that is subject to the Rental Purchase
663+18 Agreement Occupation and Use Tax. The purchaser must certify
664+19 that the item is purchased to be rented subject to a
665+20 rental-purchase rental purchase agreement, as defined in the
666+21 Rental-Purchase Rental Purchase Agreement Act, and provide
667+22 proof of registration under the Rental Purchase Agreement
668+23 Occupation and Use Tax Act. This paragraph is exempt from the
669+24 provisions of Section 3-90.
670+25 (39) Tangible personal property purchased by a purchaser
671+26 who is exempt from the tax imposed by this Act by operation of
672+
673+
674+
675+
676+
677+ HB3144 Enrolled - 19 - LRB103 26309 HLH 52670 b
678+
679+
680+HB3144 Enrolled- 20 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 20 - LRB103 26309 HLH 52670 b
681+ HB3144 Enrolled - 20 - LRB103 26309 HLH 52670 b
682+1 federal law. This paragraph is exempt from the provisions of
683+2 Section 3-90.
684+3 (40) Qualified tangible personal property used in the
685+4 construction or operation of a data center that has been
686+5 granted a certificate of exemption by the Department of
687+6 Commerce and Economic Opportunity, whether that tangible
688+7 personal property is purchased by the owner, operator, or
689+8 tenant of the data center or by a contractor or subcontractor
690+9 of the owner, operator, or tenant. Data centers that would
691+10 have qualified for a certificate of exemption prior to January
692+11 1, 2020 had Public Act 101-31 been in effect may apply for and
693+12 obtain an exemption for subsequent purchases of computer
694+13 equipment or enabling software purchased or leased to upgrade,
695+14 supplement, or replace computer equipment or enabling software
696+15 purchased or leased in the original investment that would have
697+16 qualified.
698+17 The Department of Commerce and Economic Opportunity shall
699+18 grant a certificate of exemption under this item (40) to
700+19 qualified data centers as defined by Section 605-1025 of the
701+20 Department of Commerce and Economic Opportunity Law of the
702+21 Civil Administrative Code of Illinois.
703+22 For the purposes of this item (40):
704+23 "Data center" means a building or a series of
705+24 buildings rehabilitated or constructed to house working
706+25 servers in one physical location or multiple sites within
707+26 the State of Illinois.
708+
709+
710+
711+
712+
713+ HB3144 Enrolled - 20 - LRB103 26309 HLH 52670 b
714+
715+
716+HB3144 Enrolled- 21 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 21 - LRB103 26309 HLH 52670 b
717+ HB3144 Enrolled - 21 - LRB103 26309 HLH 52670 b
718+1 "Qualified tangible personal property" means:
719+2 electrical systems and equipment; climate control and
720+3 chilling equipment and systems; mechanical systems and
721+4 equipment; monitoring and secure systems; emergency
722+5 generators; hardware; computers; servers; data storage
723+6 devices; network connectivity equipment; racks; cabinets;
724+7 telecommunications cabling infrastructure; raised floor
725+8 systems; peripheral components or systems; software;
726+9 mechanical, electrical, or plumbing systems; battery
727+10 systems; cooling systems and towers; temperature control
728+11 systems; other cabling; and other data center
729+12 infrastructure equipment and systems necessary to operate
730+13 qualified tangible personal property, including fixtures;
731+14 and component parts of any of the foregoing, including
732+15 installation, maintenance, repair, refurbishment, and
733+16 replacement of qualified tangible personal property to
734+17 generate, transform, transmit, distribute, or manage
735+18 electricity necessary to operate qualified tangible
736+19 personal property; and all other tangible personal
737+20 property that is essential to the operations of a computer
738+21 data center. The term "qualified tangible personal
739+22 property" also includes building materials physically
740+23 incorporated into in to the qualifying data center. To
741+24 document the exemption allowed under this Section, the
742+25 retailer must obtain from the purchaser a copy of the
743+26 certificate of eligibility issued by the Department of
744+
745+
746+
747+
748+
749+ HB3144 Enrolled - 21 - LRB103 26309 HLH 52670 b
750+
751+
752+HB3144 Enrolled- 22 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 22 - LRB103 26309 HLH 52670 b
753+ HB3144 Enrolled - 22 - LRB103 26309 HLH 52670 b
754+1 Commerce and Economic Opportunity.
755+2 This item (40) is exempt from the provisions of Section
756+3 3-90.
757+4 (41) Beginning July 1, 2022, breast pumps, breast pump
758+5 collection and storage supplies, and breast pump kits. This
759+6 item (41) is exempt from the provisions of Section 3-90. As
760+7 used in this item (41):
761+8 "Breast pump" means an electrically controlled or
762+9 manually controlled pump device designed or marketed to be
763+10 used to express milk from a human breast during lactation,
764+11 including the pump device and any battery, AC adapter, or
765+12 other power supply unit that is used to power the pump
766+13 device and is packaged and sold with the pump device at the
767+14 time of sale.
768+15 "Breast pump collection and storage supplies" means
769+16 items of tangible personal property designed or marketed
770+17 to be used in conjunction with a breast pump to collect
771+18 milk expressed from a human breast and to store collected
772+19 milk until it is ready for consumption.
773+20 "Breast pump collection and storage supplies"
774+21 includes, but is not limited to: breast shields and breast
775+22 shield connectors; breast pump tubes and tubing adapters;
776+23 breast pump valves and membranes; backflow protectors and
777+24 backflow protector adaptors; bottles and bottle caps
778+25 specific to the operation of the breast pump; and breast
779+26 milk storage bags.
780+
781+
782+
783+
784+
785+ HB3144 Enrolled - 22 - LRB103 26309 HLH 52670 b
786+
787+
788+HB3144 Enrolled- 23 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 23 - LRB103 26309 HLH 52670 b
789+ HB3144 Enrolled - 23 - LRB103 26309 HLH 52670 b
790+1 "Breast pump collection and storage supplies" does not
791+2 include: (1) bottles and bottle caps not specific to the
792+3 operation of the breast pump; (2) breast pump travel bags
793+4 and other similar carrying accessories, including ice
794+5 packs, labels, and other similar products; (3) breast pump
795+6 cleaning supplies; (4) nursing bras, bra pads, breast
796+7 shells, and other similar products; and (5) creams,
797+8 ointments, and other similar products that relieve
798+9 breastfeeding-related symptoms or conditions of the
799+10 breasts or nipples, unless sold as part of a breast pump
800+11 kit that is pre-packaged by the breast pump manufacturer
801+12 or distributor.
802+13 "Breast pump kit" means a kit that: (1) contains no
803+14 more than a breast pump, breast pump collection and
804+15 storage supplies, a rechargeable battery for operating the
805+16 breast pump, a breastmilk cooler, bottle stands, ice
806+17 packs, and a breast pump carrying case; and (2) is
807+18 pre-packaged as a breast pump kit by the breast pump
808+19 manufacturer or distributor.
809+20 (42) Tangible personal property sold by or on behalf of
810+21 the State Treasurer pursuant to the Revised Uniform Unclaimed
811+22 Property Act. This item (42) is exempt from the provisions of
812+23 Section 3-90.
813+24 (43) Beginning on January 1, 2024, tangible personal
814+25 property purchased by an active duty member of the armed
815+26 forces of the United States who presents valid military
816+
817+
818+
819+
820+
821+ HB3144 Enrolled - 23 - LRB103 26309 HLH 52670 b
822+
823+
824+HB3144 Enrolled- 24 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 24 - LRB103 26309 HLH 52670 b
825+ HB3144 Enrolled - 24 - LRB103 26309 HLH 52670 b
826+1 identification and purchases the property using a form of
827+2 payment where the federal government is the payor. The member
828+3 of the armed forces must complete, at the point of sale, a form
829+4 prescribed by the Department of Revenue documenting that the
830+5 transaction is eligible for the exemption under this
831+6 paragraph. Retailers must keep the form as documentation of
832+7 the exemption in their records for a period of not less than 6
833+8 years. "Armed forces of the United States" means the United
834+9 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
835+10 This paragraph is exempt from the provisions of Section 3-90.
836+11 (44) Beginning on January 1, 2026, as further defined in
837+12 Section 3-10, food for human consumption that is to be
838+13 consumed off the premises where it is sold (other than
839+14 alcoholic beverages, food consisting of or infused with adult
840+15 use cannabis, soft drinks, candy, and food that has been
841+16 prepared for immediate consumption). This item (44) is exempt
842+17 from the provisions of Section 3-90.
843+18 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
844+19 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
845+20 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
846+21 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
847+22 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
848+23 revised 12-12-23.)
849+24 (35 ILCS 105/3-10)
850+25 Sec. 3-10. Rate of tax. Unless otherwise provided in this
851+
852+
853+
854+
855+
856+ HB3144 Enrolled - 24 - LRB103 26309 HLH 52670 b
857+
858+
859+HB3144 Enrolled- 25 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 25 - LRB103 26309 HLH 52670 b
860+ HB3144 Enrolled - 25 - LRB103 26309 HLH 52670 b
861+1 Section, the tax imposed by this Act is at the rate of 6.25% of
862+2 either the selling price or the fair market value, if any, of
863+3 the tangible personal property. In all cases where property
864+4 functionally used or consumed is the same as the property that
865+5 was purchased at retail, then the tax is imposed on the selling
866+6 price of the property. In all cases where property
867+7 functionally used or consumed is a by-product or waste product
868+8 that has been refined, manufactured, or produced from property
869+9 purchased at retail, then the tax is imposed on the lower of
870+10 the fair market value, if any, of the specific property so used
871+11 in this State or on the selling price of the property purchased
872+12 at retail. For purposes of this Section "fair market value"
873+13 means the price at which property would change hands between a
874+14 willing buyer and a willing seller, neither being under any
875+15 compulsion to buy or sell and both having reasonable knowledge
876+16 of the relevant facts. The fair market value shall be
877+17 established by Illinois sales by the taxpayer of the same
878+18 property as that functionally used or consumed, or if there
879+19 are no such sales by the taxpayer, then comparable sales or
880+20 purchases of property of like kind and character in Illinois.
881+21 Beginning on July 1, 2000 and through December 31, 2000,
882+22 with respect to motor fuel, as defined in Section 1.1 of the
883+23 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
884+24 the Use Tax Act, the tax is imposed at the rate of 1.25%.
885+25 Beginning on August 6, 2010 through August 15, 2010, and
886+26 beginning again on August 5, 2022 through August 14, 2022,
887+
888+
889+
890+
891+
892+ HB3144 Enrolled - 25 - LRB103 26309 HLH 52670 b
893+
894+
895+HB3144 Enrolled- 26 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 26 - LRB103 26309 HLH 52670 b
896+ HB3144 Enrolled - 26 - LRB103 26309 HLH 52670 b
897+1 with respect to sales tax holiday items as defined in Section
898+2 3-6 of this Act, the tax is imposed at the rate of 1.25%.
899+3 With respect to gasohol, the tax imposed by this Act
900+4 applies to (i) 70% of the proceeds of sales made on or after
901+5 January 1, 1990, and before July 1, 2003, (ii) 80% of the
902+6 proceeds of sales made on or after July 1, 2003 and on or
903+7 before July 1, 2017, (iii) 100% of the proceeds of sales made
904+8 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
905+9 the proceeds of sales made on or after January 1, 2024 and on
906+10 or before December 31, 2028, and (v) 100% of the proceeds of
907+11 sales made after December 31, 2028. If, at any time, however,
908+12 the tax under this Act on sales of gasohol is imposed at the
909+13 rate of 1.25%, then the tax imposed by this Act applies to 100%
910+14 of the proceeds of sales of gasohol made during that time.
911+15 With respect to mid-range ethanol blends, the tax imposed
912+16 by this Act applies to (i) 80% of the proceeds of sales made on
913+17 or after January 1, 2024 and on or before December 31, 2028 and
914+18 (ii) 100% of the proceeds of sales made thereafter. If, at any
915+19 time, however, the tax under this Act on sales of mid-range
916+20 ethanol blends is imposed at the rate of 1.25%, then the tax
917+21 imposed by this Act applies to 100% of the proceeds of sales of
918+22 mid-range ethanol blends made during that time.
919+23 With respect to majority blended ethanol fuel, the tax
920+24 imposed by this Act does not apply to the proceeds of sales
921+25 made on or after July 1, 2003 and on or before December 31,
922+26 2028 but applies to 100% of the proceeds of sales made
923+
924+
925+
926+
927+
928+ HB3144 Enrolled - 26 - LRB103 26309 HLH 52670 b
929+
930+
931+HB3144 Enrolled- 27 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 27 - LRB103 26309 HLH 52670 b
932+ HB3144 Enrolled - 27 - LRB103 26309 HLH 52670 b
933+1 thereafter.
934+2 With respect to biodiesel blends with no less than 1% and
935+3 no more than 10% biodiesel, the tax imposed by this Act applies
936+4 to (i) 80% of the proceeds of sales made on or after July 1,
937+5 2003 and on or before December 31, 2018 and (ii) 100% of the
938+6 proceeds of sales made after December 31, 2018 and before
939+7 January 1, 2024. On and after January 1, 2024 and on or before
940+8 December 31, 2030, the taxation of biodiesel, renewable
941+9 diesel, and biodiesel blends shall be as provided in Section
942+10 3-5.1. If, at any time, however, the tax under this Act on
943+11 sales of biodiesel blends with no less than 1% and no more than
944+12 10% biodiesel is imposed at the rate of 1.25%, then the tax
945+13 imposed by this Act applies to 100% of the proceeds of sales of
946+14 biodiesel blends with no less than 1% and no more than 10%
947+15 biodiesel made during that time.
948+16 With respect to biodiesel and biodiesel blends with more
949+17 than 10% but no more than 99% biodiesel, the tax imposed by
950+18 this Act does not apply to the proceeds of sales made on or
951+19 after July 1, 2003 and on or before December 31, 2023. On and
952+20 after January 1, 2024 and on or before December 31, 2030, the
953+21 taxation of biodiesel, renewable diesel, and biodiesel blends
954+22 shall be as provided in Section 3-5.1.
955+23 Until July 1, 2022 and from beginning again on July 1, 2023
956+24 through December 31, 2025, with respect to food for human
957+25 consumption that is to be consumed off the premises where it is
958+26 sold (other than alcoholic beverages, food consisting of or
959+
960+
961+
962+
963+
964+ HB3144 Enrolled - 27 - LRB103 26309 HLH 52670 b
965+
966+
967+HB3144 Enrolled- 28 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 28 - LRB103 26309 HLH 52670 b
968+ HB3144 Enrolled - 28 - LRB103 26309 HLH 52670 b
969+1 infused with adult use cannabis, soft drinks, and food that
970+2 has been prepared for immediate consumption), the tax is
971+3 imposed at the rate of 1%. Beginning on July 1, 2022 and until
972+4 July 1, 2023, with respect to food for human consumption that
973+5 is to be consumed off the premises where it is sold (other than
974+6 alcoholic beverages, food consisting of or infused with adult
975+7 use cannabis, soft drinks, and food that has been prepared for
976+8 immediate consumption), the tax is imposed at the rate of 0%.
977+9 On and after January 1, 2026, food for human consumption that
978+10 is to be consumed off the premises where it is sold (other than
979+11 alcoholic beverages, food consisting of or infused with adult
980+12 use cannabis, soft drinks, candy, and food that has been
981+13 prepared for immediate consumption) is exempt from the tax
982+14 imposed by this Act.
983+15 With respect to prescription and nonprescription
984+16 medicines, drugs, medical appliances, products classified as
985+17 Class III medical devices by the United States Food and Drug
986+18 Administration that are used for cancer treatment pursuant to
987+19 a prescription, as well as any accessories and components
988+20 related to those devices, modifications to a motor vehicle for
989+21 the purpose of rendering it usable by a person with a
990+22 disability, and insulin, blood sugar testing materials,
991+23 syringes, and needles used by human diabetics, the tax is
992+24 imposed at the rate of 1%. For the purposes of this Section,
993+25 until September 1, 2009: the term "soft drinks" means any
994+26 complete, finished, ready-to-use, non-alcoholic drink, whether
995+
996+
997+
998+
999+
1000+ HB3144 Enrolled - 28 - LRB103 26309 HLH 52670 b
1001+
1002+
1003+HB3144 Enrolled- 29 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 29 - LRB103 26309 HLH 52670 b
1004+ HB3144 Enrolled - 29 - LRB103 26309 HLH 52670 b
1005+1 carbonated or not, including, but not limited to, soda water,
1006+2 cola, fruit juice, vegetable juice, carbonated water, and all
1007+3 other preparations commonly known as soft drinks of whatever
1008+4 kind or description that are contained in any closed or sealed
1009+5 bottle, can, carton, or container, regardless of size; but
1010+6 "soft drinks" does not include coffee, tea, non-carbonated
1011+7 water, infant formula, milk or milk products as defined in the
1012+8 Grade A Pasteurized Milk and Milk Products Act, or drinks
1013+9 containing 50% or more natural fruit or vegetable juice.
1014+10 Notwithstanding any other provisions of this Act,
1015+11 beginning September 1, 2009, "soft drinks" means non-alcoholic
1016+12 beverages that contain natural or artificial sweeteners. "Soft
1017+13 drinks" does not include beverages that contain milk or milk
1018+14 products, soy, rice or similar milk substitutes, or greater
1019+15 than 50% of vegetable or fruit juice by volume.
1020+16 Until August 1, 2009, and notwithstanding any other
1021+17 provisions of this Act, "food for human consumption that is to
1022+18 be consumed off the premises where it is sold" includes all
1023+19 food sold through a vending machine, except soft drinks and
1024+20 food products that are dispensed hot from a vending machine,
1025+21 regardless of the location of the vending machine. Beginning
1026+22 August 1, 2009, and notwithstanding any other provisions of
1027+23 this Act, "food for human consumption that is to be consumed
1028+24 off the premises where it is sold" includes all food sold
1029+25 through a vending machine, except soft drinks, candy, and food
1030+26 products that are dispensed hot from a vending machine,
1031+
1032+
1033+
1034+
1035+
1036+ HB3144 Enrolled - 29 - LRB103 26309 HLH 52670 b
1037+
1038+
1039+HB3144 Enrolled- 30 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 30 - LRB103 26309 HLH 52670 b
1040+ HB3144 Enrolled - 30 - LRB103 26309 HLH 52670 b
1041+1 regardless of the location of the vending machine.
1042+2 Notwithstanding any other provisions of this Act,
1043+3 beginning September 1, 2009, "food for human consumption that
1044+4 is to be consumed off the premises where it is sold" does not
1045+5 include candy. For purposes of this Section, "candy" means a
1046+6 preparation of sugar, honey, or other natural or artificial
1047+7 sweeteners in combination with chocolate, fruits, nuts or
1048+8 other ingredients or flavorings in the form of bars, drops, or
1049+9 pieces. "Candy" does not include any preparation that contains
1050+10 flour or requires refrigeration.
1051+11 Notwithstanding any other provisions of this Act,
1052+12 beginning September 1, 2009, "nonprescription medicines and
1053+13 drugs" does not include grooming and hygiene products. For
1054+14 purposes of this Section, "grooming and hygiene products"
1055+15 includes, but is not limited to, soaps and cleaning solutions,
1056+16 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1057+17 lotions and screens, unless those products are available by
1058+18 prescription only, regardless of whether the products meet the
1059+19 definition of "over-the-counter-drugs". For the purposes of
1060+20 this paragraph, "over-the-counter-drug" means a drug for human
1061+21 use that contains a label that identifies the product as a drug
1062+22 as required by 21 CFR 201.66. The "over-the-counter-drug"
1063+23 label includes:
1064+24 (A) a "Drug Facts" panel; or
1065+25 (B) a statement of the "active ingredient(s)" with a
1066+26 list of those ingredients contained in the compound,
1067+
1068+
1069+
1070+
1071+
1072+ HB3144 Enrolled - 30 - LRB103 26309 HLH 52670 b
1073+
1074+
1075+HB3144 Enrolled- 31 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 31 - LRB103 26309 HLH 52670 b
1076+ HB3144 Enrolled - 31 - LRB103 26309 HLH 52670 b
1077+1 substance or preparation.
1078+2 Beginning on January 1, 2014 (the effective date of Public
1079+3 Act 98-122), "prescription and nonprescription medicines and
1080+4 drugs" includes medical cannabis purchased from a registered
1081+5 dispensing organization under the Compassionate Use of Medical
1082+6 Cannabis Program Act.
1083+7 As used in this Section, "adult use cannabis" means
1084+8 cannabis subject to tax under the Cannabis Cultivation
1085+9 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1086+10 and does not include cannabis subject to tax under the
1087+11 Compassionate Use of Medical Cannabis Program Act.
1088+12 If the property that is purchased at retail from a
1089+13 retailer is acquired outside Illinois and used outside
1090+14 Illinois before being brought to Illinois for use here and is
1091+15 taxable under this Act, the "selling price" on which the tax is
1092+16 computed shall be reduced by an amount that represents a
1093+17 reasonable allowance for depreciation for the period of prior
1094+18 out-of-state use.
1095+19 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
1096+20 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
1097+21 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
1098+22 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
1099+23 Section 10. The Service Use Tax Act is amended by changing
1100+24 Sections 3-5 and 3-10 as follows:
1101+
1102+
1103+
1104+
1105+
1106+ HB3144 Enrolled - 31 - LRB103 26309 HLH 52670 b
1107+
1108+
1109+HB3144 Enrolled- 32 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 32 - LRB103 26309 HLH 52670 b
1110+ HB3144 Enrolled - 32 - LRB103 26309 HLH 52670 b
1111+1 (35 ILCS 110/3-5)
1112+2 Sec. 3-5. Exemptions. Use of the following tangible
1113+3 personal property is exempt from the tax imposed by this Act:
1114+4 (1) Personal property purchased from a corporation,
1115+5 society, association, foundation, institution, or
1116+6 organization, other than a limited liability company, that is
1117+7 organized and operated as a not-for-profit service enterprise
1118+8 for the benefit of persons 65 years of age or older if the
1119+9 personal property was not purchased by the enterprise for the
1120+10 purpose of resale by the enterprise.
1121+11 (2) Personal property purchased by a non-profit Illinois
1122+12 county fair association for use in conducting, operating, or
1123+13 promoting the county fair.
1124+14 (3) Personal property purchased by a not-for-profit arts
1125+15 or cultural organization that establishes, by proof required
1126+16 by the Department by rule, that it has received an exemption
1127+17 under Section 501(c)(3) of the Internal Revenue Code and that
1128+18 is organized and operated primarily for the presentation or
1129+19 support of arts or cultural programming, activities, or
1130+20 services. These organizations include, but are not limited to,
1131+21 music and dramatic arts organizations such as symphony
1132+22 orchestras and theatrical groups, arts and cultural service
1133+23 organizations, local arts councils, visual arts organizations,
1134+24 and media arts organizations. On and after July 1, 2001 (the
1135+25 effective date of Public Act 92-35), however, an entity
1136+26 otherwise eligible for this exemption shall not make tax-free
1137+
1138+
1139+
1140+
1141+
1142+ HB3144 Enrolled - 32 - LRB103 26309 HLH 52670 b
1143+
1144+
1145+HB3144 Enrolled- 33 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 33 - LRB103 26309 HLH 52670 b
1146+ HB3144 Enrolled - 33 - LRB103 26309 HLH 52670 b
1147+1 purchases unless it has an active identification number issued
1148+2 by the Department.
1149+3 (4) Legal tender, currency, medallions, or gold or silver
1150+4 coinage issued by the State of Illinois, the government of the
1151+5 United States of America, or the government of any foreign
1152+6 country, and bullion.
1153+7 (5) Until July 1, 2003 and beginning again on September 1,
1154+8 2004 through August 30, 2014, graphic arts machinery and
1155+9 equipment, including repair and replacement parts, both new
1156+10 and used, and including that manufactured on special order or
1157+11 purchased for lease, certified by the purchaser to be used
1158+12 primarily for graphic arts production. Equipment includes
1159+13 chemicals or chemicals acting as catalysts but only if the
1160+14 chemicals or chemicals acting as catalysts effect a direct and
1161+15 immediate change upon a graphic arts product. Beginning on
1162+16 July 1, 2017, graphic arts machinery and equipment is included
1163+17 in the manufacturing and assembling machinery and equipment
1164+18 exemption under Section 2 of this Act.
1165+19 (6) Personal property purchased from a teacher-sponsored
1166+20 student organization affiliated with an elementary or
1167+21 secondary school located in Illinois.
1168+22 (7) Farm machinery and equipment, both new and used,
1169+23 including that manufactured on special order, certified by the
1170+24 purchaser to be used primarily for production agriculture or
1171+25 State or federal agricultural programs, including individual
1172+26 replacement parts for the machinery and equipment, including
1173+
1174+
1175+
1176+
1177+
1178+ HB3144 Enrolled - 33 - LRB103 26309 HLH 52670 b
1179+
1180+
1181+HB3144 Enrolled- 34 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 34 - LRB103 26309 HLH 52670 b
1182+ HB3144 Enrolled - 34 - LRB103 26309 HLH 52670 b
1183+1 machinery and equipment purchased for lease, and including
1184+2 implements of husbandry defined in Section 1-130 of the
1185+3 Illinois Vehicle Code, farm machinery and agricultural
1186+4 chemical and fertilizer spreaders, and nurse wagons required
1187+5 to be registered under Section 3-809 of the Illinois Vehicle
1188+6 Code, but excluding other motor vehicles required to be
1189+7 registered under the Illinois Vehicle Code. Horticultural
1190+8 polyhouses or hoop houses used for propagating, growing, or
1191+9 overwintering plants shall be considered farm machinery and
1192+10 equipment under this item (7). Agricultural chemical tender
1193+11 tanks and dry boxes shall include units sold separately from a
1194+12 motor vehicle required to be licensed and units sold mounted
1195+13 on a motor vehicle required to be licensed if the selling price
1196+14 of the tender is separately stated.
1197+15 Farm machinery and equipment shall include precision
1198+16 farming equipment that is installed or purchased to be
1199+17 installed on farm machinery and equipment, including, but not
1200+18 limited to, tractors, harvesters, sprayers, planters, seeders,
1201+19 or spreaders. Precision farming equipment includes, but is not
1202+20 limited to, soil testing sensors, computers, monitors,
1203+21 software, global positioning and mapping systems, and other
1204+22 such equipment.
1205+23 Farm machinery and equipment also includes computers,
1206+24 sensors, software, and related equipment used primarily in the
1207+25 computer-assisted operation of production agriculture
1208+26 facilities, equipment, and activities such as, but not limited
1209+
1210+
1211+
1212+
1213+
1214+ HB3144 Enrolled - 34 - LRB103 26309 HLH 52670 b
1215+
1216+
1217+HB3144 Enrolled- 35 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 35 - LRB103 26309 HLH 52670 b
1218+ HB3144 Enrolled - 35 - LRB103 26309 HLH 52670 b
1219+1 to, the collection, monitoring, and correlation of animal and
1220+2 crop data for the purpose of formulating animal diets and
1221+3 agricultural chemicals.
1222+4 Beginning on January 1, 2024, farm machinery and equipment
1223+5 also includes electrical power generation equipment used
1224+6 primarily for production agriculture.
1225+7 This item (7) is exempt from the provisions of Section
1226+8 3-75.
1227+9 (8) Until June 30, 2013, fuel and petroleum products sold
1228+10 to or used by an air common carrier, certified by the carrier
1229+11 to be used for consumption, shipment, or storage in the
1230+12 conduct of its business as an air common carrier, for a flight
1231+13 destined for or returning from a location or locations outside
1232+14 the United States without regard to previous or subsequent
1233+15 domestic stopovers.
1234+16 Beginning July 1, 2013, fuel and petroleum products sold
1235+17 to or used by an air carrier, certified by the carrier to be
1236+18 used for consumption, shipment, or storage in the conduct of
1237+19 its business as an air common carrier, for a flight that (i) is
1238+20 engaged in foreign trade or is engaged in trade between the
1239+21 United States and any of its possessions and (ii) transports
1240+22 at least one individual or package for hire from the city of
1241+23 origination to the city of final destination on the same
1242+24 aircraft, without regard to a change in the flight number of
1243+25 that aircraft.
1244+26 (9) Proceeds of mandatory service charges separately
1245+
1246+
1247+
1248+
1249+
1250+ HB3144 Enrolled - 35 - LRB103 26309 HLH 52670 b
1251+
1252+
1253+HB3144 Enrolled- 36 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 36 - LRB103 26309 HLH 52670 b
1254+ HB3144 Enrolled - 36 - LRB103 26309 HLH 52670 b
1255+1 stated on customers' bills for the purchase and consumption of
1256+2 food and beverages acquired as an incident to the purchase of a
1257+3 service from a serviceman, to the extent that the proceeds of
1258+4 the service charge are in fact turned over as tips or as a
1259+5 substitute for tips to the employees who participate directly
1260+6 in preparing, serving, hosting or cleaning up the food or
1261+7 beverage function with respect to which the service charge is
1262+8 imposed.
1263+9 (10) Until July 1, 2003, oil field exploration, drilling,
1264+10 and production equipment, including (i) rigs and parts of
1265+11 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1266+12 pipe and tubular goods, including casing and drill strings,
1267+13 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1268+14 lines, (v) any individual replacement part for oil field
1269+15 exploration, drilling, and production equipment, and (vi)
1270+16 machinery and equipment purchased for lease; but excluding
1271+17 motor vehicles required to be registered under the Illinois
1272+18 Vehicle Code.
1273+19 (11) Proceeds from the sale of photoprocessing machinery
1274+20 and equipment, including repair and replacement parts, both
1275+21 new and used, including that manufactured on special order,
1276+22 certified by the purchaser to be used primarily for
1277+23 photoprocessing, and including photoprocessing machinery and
1278+24 equipment purchased for lease.
1279+25 (12) Until July 1, 2028, coal and aggregate exploration,
1280+26 mining, off-highway hauling, processing, maintenance, and
1281+
1282+
1283+
1284+
1285+
1286+ HB3144 Enrolled - 36 - LRB103 26309 HLH 52670 b
1287+
1288+
1289+HB3144 Enrolled- 37 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 37 - LRB103 26309 HLH 52670 b
1290+ HB3144 Enrolled - 37 - LRB103 26309 HLH 52670 b
1291+1 reclamation equipment, including replacement parts and
1292+2 equipment, and including equipment purchased for lease, but
1293+3 excluding motor vehicles required to be registered under the
1294+4 Illinois Vehicle Code. The changes made to this Section by
1295+5 Public Act 97-767 apply on and after July 1, 2003, but no claim
1296+6 for credit or refund is allowed on or after August 16, 2013
1297+7 (the effective date of Public Act 98-456) for such taxes paid
1298+8 during the period beginning July 1, 2003 and ending on August
1299+9 16, 2013 (the effective date of Public Act 98-456).
1300+10 (13) Semen used for artificial insemination of livestock
1301+11 for direct agricultural production.
1302+12 (14) Horses, or interests in horses, registered with and
1303+13 meeting the requirements of any of the Arabian Horse Club
1304+14 Registry of America, Appaloosa Horse Club, American Quarter
1305+15 Horse Association, United States Trotting Association, or
1306+16 Jockey Club, as appropriate, used for purposes of breeding or
1307+17 racing for prizes. This item (14) is exempt from the
1308+18 provisions of Section 3-75, and the exemption provided for
1309+19 under this item (14) applies for all periods beginning May 30,
1310+20 1995, but no claim for credit or refund is allowed on or after
1311+21 January 1, 2008 (the effective date of Public Act 95-88) for
1312+22 such taxes paid during the period beginning May 30, 2000 and
1313+23 ending on January 1, 2008 (the effective date of Public Act
1314+24 95-88).
1315+25 (15) Computers and communications equipment utilized for
1316+26 any hospital purpose and equipment used in the diagnosis,
1317+
1318+
1319+
1320+
1321+
1322+ HB3144 Enrolled - 37 - LRB103 26309 HLH 52670 b
1323+
1324+
1325+HB3144 Enrolled- 38 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 38 - LRB103 26309 HLH 52670 b
1326+ HB3144 Enrolled - 38 - LRB103 26309 HLH 52670 b
1327+1 analysis, or treatment of hospital patients purchased by a
1328+2 lessor who leases the equipment, under a lease of one year or
1329+3 longer executed or in effect at the time the lessor would
1330+4 otherwise be subject to the tax imposed by this Act, to a
1331+5 hospital that has been issued an active tax exemption
1332+6 identification number by the Department under Section 1g of
1333+7 the Retailers' Occupation Tax Act. If the equipment is leased
1334+8 in a manner that does not qualify for this exemption or is used
1335+9 in any other non-exempt manner, the lessor shall be liable for
1336+10 the tax imposed under this Act or the Use Tax Act, as the case
1337+11 may be, based on the fair market value of the property at the
1338+12 time the non-qualifying use occurs. No lessor shall collect or
1339+13 attempt to collect an amount (however designated) that
1340+14 purports to reimburse that lessor for the tax imposed by this
1341+15 Act or the Use Tax Act, as the case may be, if the tax has not
1342+16 been paid by the lessor. If a lessor improperly collects any
1343+17 such amount from the lessee, the lessee shall have a legal
1344+18 right to claim a refund of that amount from the lessor. If,
1345+19 however, that amount is not refunded to the lessee for any
1346+20 reason, the lessor is liable to pay that amount to the
1347+21 Department.
1348+22 (16) Personal property purchased by a lessor who leases
1349+23 the property, under a lease of one year or longer executed or
1350+24 in effect at the time the lessor would otherwise be subject to
1351+25 the tax imposed by this Act, to a governmental body that has
1352+26 been issued an active tax exemption identification number by
1353+
1354+
1355+
1356+
1357+
1358+ HB3144 Enrolled - 38 - LRB103 26309 HLH 52670 b
1359+
1360+
1361+HB3144 Enrolled- 39 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 39 - LRB103 26309 HLH 52670 b
1362+ HB3144 Enrolled - 39 - LRB103 26309 HLH 52670 b
1363+1 the Department under Section 1g of the Retailers' Occupation
1364+2 Tax Act. If the property is leased in a manner that does not
1365+3 qualify for this exemption or is used in any other non-exempt
1366+4 manner, the lessor shall be liable for the tax imposed under
1367+5 this Act or the Use Tax Act, as the case may be, based on the
1368+6 fair market value of the property at the time the
1369+7 non-qualifying use occurs. No lessor shall collect or attempt
1370+8 to collect an amount (however designated) that purports to
1371+9 reimburse that lessor for the tax imposed by this Act or the
1372+10 Use Tax Act, as the case may be, if the tax has not been paid
1373+11 by the lessor. If a lessor improperly collects any such amount
1374+12 from the lessee, the lessee shall have a legal right to claim a
1375+13 refund of that amount from the lessor. If, however, that
1376+14 amount is not refunded to the lessee for any reason, the lessor
1377+15 is liable to pay that amount to the Department.
1378+16 (17) Beginning with taxable years ending on or after
1379+17 December 31, 1995 and ending with taxable years ending on or
1380+18 before December 31, 2004, personal property that is donated
1381+19 for disaster relief to be used in a State or federally declared
1382+20 disaster area in Illinois or bordering Illinois by a
1383+21 manufacturer or retailer that is registered in this State to a
1384+22 corporation, society, association, foundation, or institution
1385+23 that has been issued a sales tax exemption identification
1386+24 number by the Department that assists victims of the disaster
1387+25 who reside within the declared disaster area.
1388+26 (18) Beginning with taxable years ending on or after
1389+
1390+
1391+
1392+
1393+
1394+ HB3144 Enrolled - 39 - LRB103 26309 HLH 52670 b
1395+
1396+
1397+HB3144 Enrolled- 40 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 40 - LRB103 26309 HLH 52670 b
1398+ HB3144 Enrolled - 40 - LRB103 26309 HLH 52670 b
1399+1 December 31, 1995 and ending with taxable years ending on or
1400+2 before December 31, 2004, personal property that is used in
1401+3 the performance of infrastructure repairs in this State,
1402+4 including, but not limited to, municipal roads and streets,
1403+5 access roads, bridges, sidewalks, waste disposal systems,
1404+6 water and sewer line extensions, water distribution and
1405+7 purification facilities, storm water drainage and retention
1406+8 facilities, and sewage treatment facilities, resulting from a
1407+9 State or federally declared disaster in Illinois or bordering
1408+10 Illinois when such repairs are initiated on facilities located
1409+11 in the declared disaster area within 6 months after the
1410+12 disaster.
1411+13 (19) Beginning July 1, 1999, game or game birds purchased
1412+14 at a "game breeding and hunting preserve area" as that term is
1413+15 used in the Wildlife Code. This paragraph is exempt from the
1414+16 provisions of Section 3-75.
1415+17 (20) A motor vehicle, as that term is defined in Section
1416+18 1-146 of the Illinois Vehicle Code, that is donated to a
1417+19 corporation, limited liability company, society, association,
1418+20 foundation, or institution that is determined by the
1419+21 Department to be organized and operated exclusively for
1420+22 educational purposes. For purposes of this exemption, "a
1421+23 corporation, limited liability company, society, association,
1422+24 foundation, or institution organized and operated exclusively
1423+25 for educational purposes" means all tax-supported public
1424+26 schools, private schools that offer systematic instruction in
1425+
1426+
1427+
1428+
1429+
1430+ HB3144 Enrolled - 40 - LRB103 26309 HLH 52670 b
1431+
1432+
1433+HB3144 Enrolled- 41 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 41 - LRB103 26309 HLH 52670 b
1434+ HB3144 Enrolled - 41 - LRB103 26309 HLH 52670 b
1435+1 useful branches of learning by methods common to public
1436+2 schools and that compare favorably in their scope and
1437+3 intensity with the course of study presented in tax-supported
1438+4 schools, and vocational or technical schools or institutes
1439+5 organized and operated exclusively to provide a course of
1440+6 study of not less than 6 weeks duration and designed to prepare
1441+7 individuals to follow a trade or to pursue a manual,
1442+8 technical, mechanical, industrial, business, or commercial
1443+9 occupation.
1444+10 (21) Beginning January 1, 2000, personal property,
1445+11 including food, purchased through fundraising events for the
1446+12 benefit of a public or private elementary or secondary school,
1447+13 a group of those schools, or one or more school districts if
1448+14 the events are sponsored by an entity recognized by the school
1449+15 district that consists primarily of volunteers and includes
1450+16 parents and teachers of the school children. This paragraph
1451+17 does not apply to fundraising events (i) for the benefit of
1452+18 private home instruction or (ii) for which the fundraising
1453+19 entity purchases the personal property sold at the events from
1454+20 another individual or entity that sold the property for the
1455+21 purpose of resale by the fundraising entity and that profits
1456+22 from the sale to the fundraising entity. This paragraph is
1457+23 exempt from the provisions of Section 3-75.
1458+24 (22) Beginning January 1, 2000 and through December 31,
1459+25 2001, new or used automatic vending machines that prepare and
1460+26 serve hot food and beverages, including coffee, soup, and
1461+
1462+
1463+
1464+
1465+
1466+ HB3144 Enrolled - 41 - LRB103 26309 HLH 52670 b
1467+
1468+
1469+HB3144 Enrolled- 42 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 42 - LRB103 26309 HLH 52670 b
1470+ HB3144 Enrolled - 42 - LRB103 26309 HLH 52670 b
1471+1 other items, and replacement parts for these machines.
1472+2 Beginning January 1, 2002 and through June 30, 2003, machines
1473+3 and parts for machines used in commercial, coin-operated
1474+4 amusement and vending business if a use or occupation tax is
1475+5 paid on the gross receipts derived from the use of the
1476+6 commercial, coin-operated amusement and vending machines. This
1477+7 paragraph is exempt from the provisions of Section 3-75.
1478+8 (23) Beginning August 23, 2001 and through June 30, 2016,
1479+9 food for human consumption that is to be consumed off the
1480+10 premises where it is sold (other than alcoholic beverages,
1481+11 soft drinks, and food that has been prepared for immediate
1482+12 consumption) and prescription and nonprescription medicines,
1483+13 drugs, medical appliances, and insulin, urine testing
1484+14 materials, syringes, and needles used by diabetics, for human
1485+15 use, when purchased for use by a person receiving medical
1486+16 assistance under Article V of the Illinois Public Aid Code who
1487+17 resides in a licensed long-term care facility, as defined in
1488+18 the Nursing Home Care Act, or in a licensed facility as defined
1489+19 in the ID/DD Community Care Act, the MC/DD Act, or the
1490+20 Specialized Mental Health Rehabilitation Act of 2013.
1491+21 (24) Beginning on August 2, 2001 (the effective date of
1492+22 Public Act 92-227), computers and communications equipment
1493+23 utilized for any hospital purpose and equipment used in the
1494+24 diagnosis, analysis, or treatment of hospital patients
1495+25 purchased by a lessor who leases the equipment, under a lease
1496+26 of one year or longer executed or in effect at the time the
1497+
1498+
1499+
1500+
1501+
1502+ HB3144 Enrolled - 42 - LRB103 26309 HLH 52670 b
1503+
1504+
1505+HB3144 Enrolled- 43 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 43 - LRB103 26309 HLH 52670 b
1506+ HB3144 Enrolled - 43 - LRB103 26309 HLH 52670 b
1507+1 lessor would otherwise be subject to the tax imposed by this
1508+2 Act, to a hospital that has been issued an active tax exemption
1509+3 identification number by the Department under Section 1g of
1510+4 the Retailers' Occupation Tax Act. If the equipment is leased
1511+5 in a manner that does not qualify for this exemption or is used
1512+6 in any other nonexempt manner, the lessor shall be liable for
1513+7 the tax imposed under this Act or the Use Tax Act, as the case
1514+8 may be, based on the fair market value of the property at the
1515+9 time the nonqualifying use occurs. No lessor shall collect or
1516+10 attempt to collect an amount (however designated) that
1517+11 purports to reimburse that lessor for the tax imposed by this
1518+12 Act or the Use Tax Act, as the case may be, if the tax has not
1519+13 been paid by the lessor. If a lessor improperly collects any
1520+14 such amount from the lessee, the lessee shall have a legal
1521+15 right to claim a refund of that amount from the lessor. If,
1522+16 however, that amount is not refunded to the lessee for any
1523+17 reason, the lessor is liable to pay that amount to the
1524+18 Department. This paragraph is exempt from the provisions of
1525+19 Section 3-75.
1526+20 (25) Beginning on August 2, 2001 (the effective date of
1527+21 Public Act 92-227), personal property purchased by a lessor
1528+22 who leases the property, under a lease of one year or longer
1529+23 executed or in effect at the time the lessor would otherwise be
1530+24 subject to the tax imposed by this Act, to a governmental body
1531+25 that has been issued an active tax exemption identification
1532+26 number by the Department under Section 1g of the Retailers'
1533+
1534+
1535+
1536+
1537+
1538+ HB3144 Enrolled - 43 - LRB103 26309 HLH 52670 b
1539+
1540+
1541+HB3144 Enrolled- 44 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 44 - LRB103 26309 HLH 52670 b
1542+ HB3144 Enrolled - 44 - LRB103 26309 HLH 52670 b
1543+1 Occupation Tax Act. If the property is leased in a manner that
1544+2 does not qualify for this exemption or is used in any other
1545+3 nonexempt manner, the lessor shall be liable for the tax
1546+4 imposed under this Act or the Use Tax Act, as the case may be,
1547+5 based on the fair market value of the property at the time the
1548+6 nonqualifying use occurs. No lessor shall collect or attempt
1549+7 to collect an amount (however designated) that purports to
1550+8 reimburse that lessor for the tax imposed by this Act or the
1551+9 Use Tax Act, as the case may be, if the tax has not been paid
1552+10 by the lessor. If a lessor improperly collects any such amount
1553+11 from the lessee, the lessee shall have a legal right to claim a
1554+12 refund of that amount from the lessor. If, however, that
1555+13 amount is not refunded to the lessee for any reason, the lessor
1556+14 is liable to pay that amount to the Department. This paragraph
1557+15 is exempt from the provisions of Section 3-75.
1558+16 (26) Beginning January 1, 2008, tangible personal property
1559+17 used in the construction or maintenance of a community water
1560+18 supply, as defined under Section 3.145 of the Environmental
1561+19 Protection Act, that is operated by a not-for-profit
1562+20 corporation that holds a valid water supply permit issued
1563+21 under Title IV of the Environmental Protection Act. This
1564+22 paragraph is exempt from the provisions of Section 3-75.
1565+23 (27) Beginning January 1, 2010 and continuing through
1566+24 December 31, 2029, materials, parts, equipment, components,
1567+25 and furnishings incorporated into or upon an aircraft as part
1568+26 of the modification, refurbishment, completion, replacement,
1569+
1570+
1571+
1572+
1573+
1574+ HB3144 Enrolled - 44 - LRB103 26309 HLH 52670 b
1575+
1576+
1577+HB3144 Enrolled- 45 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 45 - LRB103 26309 HLH 52670 b
1578+ HB3144 Enrolled - 45 - LRB103 26309 HLH 52670 b
1579+1 repair, or maintenance of the aircraft. This exemption
1580+2 includes consumable supplies used in the modification,
1581+3 refurbishment, completion, replacement, repair, and
1582+4 maintenance of aircraft. However, until January 1, 2024, this
1583+5 exemption excludes any materials, parts, equipment,
1584+6 components, and consumable supplies used in the modification,
1585+7 replacement, repair, and maintenance of aircraft engines or
1586+8 power plants, whether such engines or power plants are
1587+9 installed or uninstalled upon any such aircraft. "Consumable
1588+10 supplies" include, but are not limited to, adhesive, tape,
1589+11 sandpaper, general purpose lubricants, cleaning solution,
1590+12 latex gloves, and protective films.
1591+13 Beginning January 1, 2010 and continuing through December
1592+14 31, 2023, this exemption applies only to the use of qualifying
1593+15 tangible personal property transferred incident to the
1594+16 modification, refurbishment, completion, replacement, repair,
1595+17 or maintenance of aircraft by persons who (i) hold an Air
1596+18 Agency Certificate and are empowered to operate an approved
1597+19 repair station by the Federal Aviation Administration, (ii)
1598+20 have a Class IV Rating, and (iii) conduct operations in
1599+21 accordance with Part 145 of the Federal Aviation Regulations.
1600+22 From January 1, 2024 through December 31, 2029, this exemption
1601+23 applies only to the use of qualifying tangible personal
1602+24 property by: (A) persons who modify, refurbish, complete,
1603+25 repair, replace, or maintain aircraft and who (i) hold an Air
1604+26 Agency Certificate and are empowered to operate an approved
1605+
1606+
1607+
1608+
1609+
1610+ HB3144 Enrolled - 45 - LRB103 26309 HLH 52670 b
1611+
1612+
1613+HB3144 Enrolled- 46 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 46 - LRB103 26309 HLH 52670 b
1614+ HB3144 Enrolled - 46 - LRB103 26309 HLH 52670 b
1615+1 repair station by the Federal Aviation Administration, (ii)
1616+2 have a Class IV Rating, and (iii) conduct operations in
1617+3 accordance with Part 145 of the Federal Aviation Regulations;
1618+4 and (B) persons who engage in the modification, replacement,
1619+5 repair, and maintenance of aircraft engines or power plants
1620+6 without regard to whether or not those persons meet the
1621+7 qualifications of item (A).
1622+8 The exemption does not include aircraft operated by a
1623+9 commercial air carrier providing scheduled passenger air
1624+10 service pursuant to authority issued under Part 121 or Part
1625+11 129 of the Federal Aviation Regulations. The changes made to
1626+12 this paragraph (27) by Public Act 98-534 are declarative of
1627+13 existing law. It is the intent of the General Assembly that the
1628+14 exemption under this paragraph (27) applies continuously from
1629+15 January 1, 2010 through December 31, 2024; however, no claim
1630+16 for credit or refund is allowed for taxes paid as a result of
1631+17 the disallowance of this exemption on or after January 1, 2015
1632+18 and prior to February 5, 2020 (the effective date of Public Act
1633+19 101-629).
1634+20 (28) Tangible personal property purchased by a
1635+21 public-facilities corporation, as described in Section
1636+22 11-65-10 of the Illinois Municipal Code, for purposes of
1637+23 constructing or furnishing a municipal convention hall, but
1638+24 only if the legal title to the municipal convention hall is
1639+25 transferred to the municipality without any further
1640+26 consideration by or on behalf of the municipality at the time
1641+
1642+
1643+
1644+
1645+
1646+ HB3144 Enrolled - 46 - LRB103 26309 HLH 52670 b
1647+
1648+
1649+HB3144 Enrolled- 47 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 47 - LRB103 26309 HLH 52670 b
1650+ HB3144 Enrolled - 47 - LRB103 26309 HLH 52670 b
1651+1 of the completion of the municipal convention hall or upon the
1652+2 retirement or redemption of any bonds or other debt
1653+3 instruments issued by the public-facilities corporation in
1654+4 connection with the development of the municipal convention
1655+5 hall. This exemption includes existing public-facilities
1656+6 corporations as provided in Section 11-65-25 of the Illinois
1657+7 Municipal Code. This paragraph is exempt from the provisions
1658+8 of Section 3-75.
1659+9 (29) Beginning January 1, 2017 and through December 31,
1660+10 2026, menstrual pads, tampons, and menstrual cups.
1661+11 (30) Tangible personal property transferred to a purchaser
1662+12 who is exempt from the tax imposed by this Act by operation of
1663+13 federal law. This paragraph is exempt from the provisions of
1664+14 Section 3-75.
1665+15 (31) Qualified tangible personal property used in the
1666+16 construction or operation of a data center that has been
1667+17 granted a certificate of exemption by the Department of
1668+18 Commerce and Economic Opportunity, whether that tangible
1669+19 personal property is purchased by the owner, operator, or
1670+20 tenant of the data center or by a contractor or subcontractor
1671+21 of the owner, operator, or tenant. Data centers that would
1672+22 have qualified for a certificate of exemption prior to January
1673+23 1, 2020 had Public Act 101-31 been in effect, may apply for and
1674+24 obtain an exemption for subsequent purchases of computer
1675+25 equipment or enabling software purchased or leased to upgrade,
1676+26 supplement, or replace computer equipment or enabling software
1677+
1678+
1679+
1680+
1681+
1682+ HB3144 Enrolled - 47 - LRB103 26309 HLH 52670 b
1683+
1684+
1685+HB3144 Enrolled- 48 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 48 - LRB103 26309 HLH 52670 b
1686+ HB3144 Enrolled - 48 - LRB103 26309 HLH 52670 b
1687+1 purchased or leased in the original investment that would have
1688+2 qualified.
1689+3 The Department of Commerce and Economic Opportunity shall
1690+4 grant a certificate of exemption under this item (31) to
1691+5 qualified data centers as defined by Section 605-1025 of the
1692+6 Department of Commerce and Economic Opportunity Law of the
1693+7 Civil Administrative Code of Illinois.
1694+8 For the purposes of this item (31):
1695+9 "Data center" means a building or a series of
1696+10 buildings rehabilitated or constructed to house working
1697+11 servers in one physical location or multiple sites within
1698+12 the State of Illinois.
1699+13 "Qualified tangible personal property" means:
1700+14 electrical systems and equipment; climate control and
1701+15 chilling equipment and systems; mechanical systems and
1702+16 equipment; monitoring and secure systems; emergency
1703+17 generators; hardware; computers; servers; data storage
1704+18 devices; network connectivity equipment; racks; cabinets;
1705+19 telecommunications cabling infrastructure; raised floor
1706+20 systems; peripheral components or systems; software;
1707+21 mechanical, electrical, or plumbing systems; battery
1708+22 systems; cooling systems and towers; temperature control
1709+23 systems; other cabling; and other data center
1710+24 infrastructure equipment and systems necessary to operate
1711+25 qualified tangible personal property, including fixtures;
1712+26 and component parts of any of the foregoing, including
1713+
1714+
1715+
1716+
1717+
1718+ HB3144 Enrolled - 48 - LRB103 26309 HLH 52670 b
1719+
1720+
1721+HB3144 Enrolled- 49 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 49 - LRB103 26309 HLH 52670 b
1722+ HB3144 Enrolled - 49 - LRB103 26309 HLH 52670 b
1723+1 installation, maintenance, repair, refurbishment, and
1724+2 replacement of qualified tangible personal property to
1725+3 generate, transform, transmit, distribute, or manage
1726+4 electricity necessary to operate qualified tangible
1727+5 personal property; and all other tangible personal
1728+6 property that is essential to the operations of a computer
1729+7 data center. The term "qualified tangible personal
1730+8 property" also includes building materials physically
1731+9 incorporated into in to the qualifying data center. To
1732+10 document the exemption allowed under this Section, the
1733+11 retailer must obtain from the purchaser a copy of the
1734+12 certificate of eligibility issued by the Department of
1735+13 Commerce and Economic Opportunity.
1736+14 This item (31) is exempt from the provisions of Section
1737+15 3-75.
1738+16 (32) Beginning July 1, 2022, breast pumps, breast pump
1739+17 collection and storage supplies, and breast pump kits. This
1740+18 item (32) is exempt from the provisions of Section 3-75. As
1741+19 used in this item (32):
1742+20 "Breast pump" means an electrically controlled or
1743+21 manually controlled pump device designed or marketed to be
1744+22 used to express milk from a human breast during lactation,
1745+23 including the pump device and any battery, AC adapter, or
1746+24 other power supply unit that is used to power the pump
1747+25 device and is packaged and sold with the pump device at the
1748+26 time of sale.
1749+
1750+
1751+
1752+
1753+
1754+ HB3144 Enrolled - 49 - LRB103 26309 HLH 52670 b
1755+
1756+
1757+HB3144 Enrolled- 50 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 50 - LRB103 26309 HLH 52670 b
1758+ HB3144 Enrolled - 50 - LRB103 26309 HLH 52670 b
1759+1 "Breast pump collection and storage supplies" means
1760+2 items of tangible personal property designed or marketed
1761+3 to be used in conjunction with a breast pump to collect
1762+4 milk expressed from a human breast and to store collected
1763+5 milk until it is ready for consumption.
1764+6 "Breast pump collection and storage supplies"
1765+7 includes, but is not limited to: breast shields and breast
1766+8 shield connectors; breast pump tubes and tubing adapters;
1767+9 breast pump valves and membranes; backflow protectors and
1768+10 backflow protector adaptors; bottles and bottle caps
1769+11 specific to the operation of the breast pump; and breast
1770+12 milk storage bags.
1771+13 "Breast pump collection and storage supplies" does not
1772+14 include: (1) bottles and bottle caps not specific to the
1773+15 operation of the breast pump; (2) breast pump travel bags
1774+16 and other similar carrying accessories, including ice
1775+17 packs, labels, and other similar products; (3) breast pump
1776+18 cleaning supplies; (4) nursing bras, bra pads, breast
1777+19 shells, and other similar products; and (5) creams,
1778+20 ointments, and other similar products that relieve
1779+21 breastfeeding-related symptoms or conditions of the
1780+22 breasts or nipples, unless sold as part of a breast pump
1781+23 kit that is pre-packaged by the breast pump manufacturer
1782+24 or distributor.
1783+25 "Breast pump kit" means a kit that: (1) contains no
1784+26 more than a breast pump, breast pump collection and
1785+
1786+
1787+
1788+
1789+
1790+ HB3144 Enrolled - 50 - LRB103 26309 HLH 52670 b
1791+
1792+
1793+HB3144 Enrolled- 51 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 51 - LRB103 26309 HLH 52670 b
1794+ HB3144 Enrolled - 51 - LRB103 26309 HLH 52670 b
1795+1 storage supplies, a rechargeable battery for operating the
1796+2 breast pump, a breastmilk cooler, bottle stands, ice
1797+3 packs, and a breast pump carrying case; and (2) is
1798+4 pre-packaged as a breast pump kit by the breast pump
1799+5 manufacturer or distributor.
1800+6 (33) Tangible personal property sold by or on behalf of
1801+7 the State Treasurer pursuant to the Revised Uniform Unclaimed
1802+8 Property Act. This item (33) is exempt from the provisions of
1803+9 Section 3-75.
1804+10 (34) Beginning on January 1, 2024, tangible personal
1805+11 property purchased by an active duty member of the armed
1806+12 forces of the United States who presents valid military
1807+13 identification and purchases the property using a form of
1808+14 payment where the federal government is the payor. The member
1809+15 of the armed forces must complete, at the point of sale, a form
1810+16 prescribed by the Department of Revenue documenting that the
1811+17 transaction is eligible for the exemption under this
1812+18 paragraph. Retailers must keep the form as documentation of
1813+19 the exemption in their records for a period of not less than 6
1814+20 years. "Armed forces of the United States" means the United
1815+21 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1816+22 This paragraph is exempt from the provisions of Section 3-75.
1817+23 (35) Beginning on January 1, 2026, as further defined in
1818+24 Section 3-10, food prepared for immediate consumption and
1819+25 transferred incident to a sale of service subject to this Act
1820+26 or the Service Occupation Tax Act by an entity licensed under
1821+
1822+
1823+
1824+
1825+
1826+ HB3144 Enrolled - 51 - LRB103 26309 HLH 52670 b
1827+
1828+
1829+HB3144 Enrolled- 52 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 52 - LRB103 26309 HLH 52670 b
1830+ HB3144 Enrolled - 52 - LRB103 26309 HLH 52670 b
1831+1 the Hospital Licensing Act, the Nursing Home Care Act, the
1832+2 Assisted Living and Shared Housing Act, the ID/DD Community
1833+3 Care Act, the MC/DD Act, the Specialized Mental Health
1834+4 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1835+5 by an entity that holds a permit issued pursuant to the Life
1836+6 Care Facilities Act. This item (35) is exempt from the
1837+7 provisions of Section 3-75.
1838+8 (36) Beginning on January 1, 2026, as further defined in
1839+9 Section 3-10, food for human consumption that is to be
1840+10 consumed off the premises where it is sold (other than
1841+11 alcoholic beverages, food consisting of or infused with adult
1842+12 use cannabis, soft drinks, candy, and food that has been
1843+13 prepared for immediate consumption). This item (36) is exempt
1844+14 from the provisions of Section 3-75.
1845+15 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1846+16 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1847+17 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1848+18 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1849+19 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1850+20 revised 12-12-23.)
1851+21 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
1852+22 Sec. 3-10. Rate of tax. Unless otherwise provided in this
1853+23 Section, the tax imposed by this Act is at the rate of 6.25% of
1854+24 the selling price of tangible personal property transferred as
1855+25 an incident to the sale of service, but, for the purpose of
1856+
1857+
1858+
1859+
1860+
1861+ HB3144 Enrolled - 52 - LRB103 26309 HLH 52670 b
1862+
1863+
1864+HB3144 Enrolled- 53 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 53 - LRB103 26309 HLH 52670 b
1865+ HB3144 Enrolled - 53 - LRB103 26309 HLH 52670 b
1866+1 computing this tax, in no event shall the selling price be less
1867+2 than the cost price of the property to the serviceman.
1868+3 Beginning on July 1, 2000 and through December 31, 2000,
1869+4 with respect to motor fuel, as defined in Section 1.1 of the
1870+5 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1871+6 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1872+7 With respect to gasohol, as defined in the Use Tax Act, the
1873+8 tax imposed by this Act applies to (i) 70% of the selling price
1874+9 of property transferred as an incident to the sale of service
1875+10 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
1876+11 of the selling price of property transferred as an incident to
1877+12 the sale of service on or after July 1, 2003 and on or before
1878+13 July 1, 2017, (iii) 100% of the selling price of property
1879+14 transferred as an incident to the sale of service after July 1,
1880+15 2017 and before January 1, 2024, (iv) 90% of the selling price
1881+16 of property transferred as an incident to the sale of service
1882+17 on or after January 1, 2024 and on or before December 31, 2028,
1883+18 and (v) 100% of the selling price of property transferred as an
1884+19 incident to the sale of service after December 31, 2028. If, at
1885+20 any time, however, the tax under this Act on sales of gasohol,
1886+21 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
1887+22 then the tax imposed by this Act applies to 100% of the
1888+23 proceeds of sales of gasohol made during that time.
1889+24 With respect to mid-range ethanol blends, as defined in
1890+25 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
1891+26 applies to (i) 80% of the selling price of property
1892+
1893+
1894+
1895+
1896+
1897+ HB3144 Enrolled - 53 - LRB103 26309 HLH 52670 b
1898+
1899+
1900+HB3144 Enrolled- 54 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 54 - LRB103 26309 HLH 52670 b
1901+ HB3144 Enrolled - 54 - LRB103 26309 HLH 52670 b
1902+1 transferred as an incident to the sale of service on or after
1903+2 January 1, 2024 and on or before December 31, 2028 and (ii)
1904+3 100% of the selling price of property transferred as an
1905+4 incident to the sale of service after December 31, 2028. If, at
1906+5 any time, however, the tax under this Act on sales of mid-range
1907+6 ethanol blends is imposed at the rate of 1.25%, then the tax
1908+7 imposed by this Act applies to 100% of the selling price of
1909+8 mid-range ethanol blends transferred as an incident to the
1910+9 sale of service during that time.
1911+10 With respect to majority blended ethanol fuel, as defined
1912+11 in the Use Tax Act, the tax imposed by this Act does not apply
1913+12 to the selling price of property transferred as an incident to
1914+13 the sale of service on or after July 1, 2003 and on or before
1915+14 December 31, 2028 but applies to 100% of the selling price
1916+15 thereafter.
1917+16 With respect to biodiesel blends, as defined in the Use
1918+17 Tax Act, with no less than 1% and no more than 10% biodiesel,
1919+18 the tax imposed by this Act applies to (i) 80% of the selling
1920+19 price of property transferred as an incident to the sale of
1921+20 service on or after July 1, 2003 and on or before December 31,
1922+21 2018 and (ii) 100% of the proceeds of the selling price after
1923+22 December 31, 2018 and before January 1, 2024. On and after
1924+23 January 1, 2024 and on or before December 31, 2030, the
1925+24 taxation of biodiesel, renewable diesel, and biodiesel blends
1926+25 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1927+26 at any time, however, the tax under this Act on sales of
1928+
1929+
1930+
1931+
1932+
1933+ HB3144 Enrolled - 54 - LRB103 26309 HLH 52670 b
1934+
1935+
1936+HB3144 Enrolled- 55 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 55 - LRB103 26309 HLH 52670 b
1937+ HB3144 Enrolled - 55 - LRB103 26309 HLH 52670 b
1938+1 biodiesel blends, as defined in the Use Tax Act, with no less
1939+2 than 1% and no more than 10% biodiesel is imposed at the rate
1940+3 of 1.25%, then the tax imposed by this Act applies to 100% of
1941+4 the proceeds of sales of biodiesel blends with no less than 1%
1942+5 and no more than 10% biodiesel made during that time.
1943+6 With respect to biodiesel, as defined in the Use Tax Act,
1944+7 and biodiesel blends, as defined in the Use Tax Act, with more
1945+8 than 10% but no more than 99% biodiesel, the tax imposed by
1946+9 this Act does not apply to the proceeds of the selling price of
1947+10 property transferred as an incident to the sale of service on
1948+11 or after July 1, 2003 and on or before December 31, 2023. On
1949+12 and after January 1, 2024 and on or before December 31, 2030,
1950+13 the taxation of biodiesel, renewable diesel, and biodiesel
1951+14 blends shall be as provided in Section 3-5.1 of the Use Tax
1952+15 Act.
1953+16 At the election of any registered serviceman made for each
1954+17 fiscal year, sales of service in which the aggregate annual
1955+18 cost price of tangible personal property transferred as an
1956+19 incident to the sales of service is less than 35%, or 75% in
1957+20 the case of servicemen transferring prescription drugs or
1958+21 servicemen engaged in graphic arts production, of the
1959+22 aggregate annual total gross receipts from all sales of
1960+23 service, the tax imposed by this Act shall be based on the
1961+24 serviceman's cost price of the tangible personal property
1962+25 transferred as an incident to the sale of those services.
1963+26 Until July 1, 2022 and from beginning again on July 1, 2023
1964+
1965+
1966+
1967+
1968+
1969+ HB3144 Enrolled - 55 - LRB103 26309 HLH 52670 b
1970+
1971+
1972+HB3144 Enrolled- 56 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 56 - LRB103 26309 HLH 52670 b
1973+ HB3144 Enrolled - 56 - LRB103 26309 HLH 52670 b
1974+1 through December 31, 2025, the tax shall be imposed at the rate
1975+2 of 1% on food prepared for immediate consumption and
1976+3 transferred incident to a sale of service subject to this Act
1977+4 or the Service Occupation Tax Act by an entity licensed under
1978+5 the Hospital Licensing Act, the Nursing Home Care Act, the
1979+6 Assisted Living and Shared Housing Act, the ID/DD Community
1980+7 Care Act, the MC/DD Act, the Specialized Mental Health
1981+8 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1982+9 an entity that holds a permit issued pursuant to the Life Care
1983+10 Facilities Act. Until July 1, 2022 and from beginning again on
1984+11 July 1, 2023 through December 31, 2025, the tax shall also be
1985+12 imposed at the rate of 1% on food for human consumption that is
1986+13 to be consumed off the premises where it is sold (other than
1987+14 alcoholic beverages, food consisting of or infused with adult
1988+15 use cannabis, soft drinks, and food that has been prepared for
1989+16 immediate consumption and is not otherwise included in this
1990+17 paragraph).
1991+18 Beginning on July 1, 2022 and until July 1, 2023, the tax
1992+19 shall be imposed at the rate of 0% on food prepared for
1993+20 immediate consumption and transferred incident to a sale of
1994+21 service subject to this Act or the Service Occupation Tax Act
1995+22 by an entity licensed under the Hospital Licensing Act, the
1996+23 Nursing Home Care Act, the Assisted Living and Shared Housing
1997+24 Act, the ID/DD Community Care Act, the MC/DD Act, the
1998+25 Specialized Mental Health Rehabilitation Act of 2013, or the
1999+26 Child Care Act of 1969, or an entity that holds a permit issued
2000+
2001+
2002+
2003+
2004+
2005+ HB3144 Enrolled - 56 - LRB103 26309 HLH 52670 b
2006+
2007+
2008+HB3144 Enrolled- 57 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 57 - LRB103 26309 HLH 52670 b
2009+ HB3144 Enrolled - 57 - LRB103 26309 HLH 52670 b
2010+1 pursuant to the Life Care Facilities Act. Beginning on July 1,
2011+2 2022 and until July 1, 2023, the tax shall also be imposed at
2012+3 the rate of 0% on food for human consumption that is to be
2013+4 consumed off the premises where it is sold (other than
2014+5 alcoholic beverages, food consisting of or infused with adult
2015+6 use cannabis, soft drinks, and food that has been prepared for
2016+7 immediate consumption and is not otherwise included in this
2017+8 paragraph).
2018+9 On an after January 1, 2026, food prepared for immediate
2019+10 consumption and transferred incident to a sale of service
2020+11 subject to this Act or the Service Occupation Tax Act by an
2021+12 entity licensed under the Hospital Licensing Act, the Nursing
2022+13 Home Care Act, the Assisted Living and Shared Housing Act, the
2023+14 ID/DD Community Care Act, the MC/DD Act, the Specialized
2024+15 Mental Health Rehabilitation Act of 2013, or the Child Care
2025+16 Act of 1969, or by an entity that holds a permit issued
2026+17 pursuant to the Life Care Facilities Act is exempt from the tax
2027+18 under this Act. On and after January 1, 2026, food for human
2028+19 consumption that is to be consumed off the premises where it is
2029+20 sold (other than alcoholic beverages, food consisting of or
2030+21 infused with adult use cannabis, soft drinks, candy, and food
2031+22 that has been prepared for immediate consumption and is not
2032+23 otherwise included in this paragraph) is exempt from the tax
2033+24 under this Act.
2034+25 The tax shall also be imposed at the rate of 1% on
2035+26 prescription and nonprescription medicines, drugs, medical
2036+
2037+
2038+
2039+
2040+
2041+ HB3144 Enrolled - 57 - LRB103 26309 HLH 52670 b
2042+
2043+
2044+HB3144 Enrolled- 58 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 58 - LRB103 26309 HLH 52670 b
2045+ HB3144 Enrolled - 58 - LRB103 26309 HLH 52670 b
2046+1 appliances, products classified as Class III medical devices
2047+2 by the United States Food and Drug Administration that are
2048+3 used for cancer treatment pursuant to a prescription, as well
2049+4 as any accessories and components related to those devices,
2050+5 modifications to a motor vehicle for the purpose of rendering
2051+6 it usable by a person with a disability, and insulin, blood
2052+7 sugar testing materials, syringes, and needles used by human
2053+8 diabetics. For the purposes of this Section, until September
2054+9 1, 2009: the term "soft drinks" means any complete, finished,
2055+10 ready-to-use, non-alcoholic drink, whether carbonated or not,
2056+11 including, but not limited to, soda water, cola, fruit juice,
2057+12 vegetable juice, carbonated water, and all other preparations
2058+13 commonly known as soft drinks of whatever kind or description
2059+14 that are contained in any closed or sealed bottle, can,
2060+15 carton, or container, regardless of size; but "soft drinks"
2061+16 does not include coffee, tea, non-carbonated water, infant
2062+17 formula, milk or milk products as defined in the Grade A
2063+18 Pasteurized Milk and Milk Products Act, or drinks containing
2064+19 50% or more natural fruit or vegetable juice.
2065+20 Notwithstanding any other provisions of this Act,
2066+21 beginning September 1, 2009, "soft drinks" means non-alcoholic
2067+22 beverages that contain natural or artificial sweeteners. "Soft
2068+23 drinks" does not include beverages that contain milk or milk
2069+24 products, soy, rice or similar milk substitutes, or greater
2070+25 than 50% of vegetable or fruit juice by volume.
2071+26 Until August 1, 2009, and notwithstanding any other
2072+
2073+
2074+
2075+
2076+
2077+ HB3144 Enrolled - 58 - LRB103 26309 HLH 52670 b
2078+
2079+
2080+HB3144 Enrolled- 59 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 59 - LRB103 26309 HLH 52670 b
2081+ HB3144 Enrolled - 59 - LRB103 26309 HLH 52670 b
2082+1 provisions of this Act, "food for human consumption that is to
2083+2 be consumed off the premises where it is sold" includes all
2084+3 food sold through a vending machine, except soft drinks and
2085+4 food products that are dispensed hot from a vending machine,
2086+5 regardless of the location of the vending machine. Beginning
2087+6 August 1, 2009, and notwithstanding any other provisions of
2088+7 this Act, "food for human consumption that is to be consumed
2089+8 off the premises where it is sold" includes all food sold
2090+9 through a vending machine, except soft drinks, candy, and food
2091+10 products that are dispensed hot from a vending machine,
2092+11 regardless of the location of the vending machine.
2093+12 Notwithstanding any other provisions of this Act,
2094+13 beginning September 1, 2009, "food for human consumption that
2095+14 is to be consumed off the premises where it is sold" does not
2096+15 include candy. For purposes of this Section, "candy" means a
2097+16 preparation of sugar, honey, or other natural or artificial
2098+17 sweeteners in combination with chocolate, fruits, nuts or
2099+18 other ingredients or flavorings in the form of bars, drops, or
2100+19 pieces. "Candy" does not include any preparation that contains
2101+20 flour or requires refrigeration.
2102+21 Notwithstanding any other provisions of this Act,
2103+22 beginning September 1, 2009, "nonprescription medicines and
2104+23 drugs" does not include grooming and hygiene products. For
2105+24 purposes of this Section, "grooming and hygiene products"
2106+25 includes, but is not limited to, soaps and cleaning solutions,
2107+26 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2108+
2109+
2110+
2111+
2112+
2113+ HB3144 Enrolled - 59 - LRB103 26309 HLH 52670 b
2114+
2115+
2116+HB3144 Enrolled- 60 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 60 - LRB103 26309 HLH 52670 b
2117+ HB3144 Enrolled - 60 - LRB103 26309 HLH 52670 b
2118+1 lotions and screens, unless those products are available by
2119+2 prescription only, regardless of whether the products meet the
2120+3 definition of "over-the-counter-drugs". For the purposes of
2121+4 this paragraph, "over-the-counter-drug" means a drug for human
2122+5 use that contains a label that identifies the product as a drug
2123+6 as required by 21 CFR 201.66. The "over-the-counter-drug"
2124+7 label includes:
2125+8 (A) a "Drug Facts" panel; or
2126+9 (B) a statement of the "active ingredient(s)" with a
2127+10 list of those ingredients contained in the compound,
2128+11 substance or preparation.
2129+12 Beginning on January 1, 2014 (the effective date of Public
2130+13 Act 98-122), "prescription and nonprescription medicines and
2131+14 drugs" includes medical cannabis purchased from a registered
2132+15 dispensing organization under the Compassionate Use of Medical
2133+16 Cannabis Program Act.
2134+17 As used in this Section, "adult use cannabis" means
2135+18 cannabis subject to tax under the Cannabis Cultivation
2136+19 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2137+20 and does not include cannabis subject to tax under the
2138+21 Compassionate Use of Medical Cannabis Program Act.
2139+22 If the property that is acquired from a serviceman is
2140+23 acquired outside Illinois and used outside Illinois before
2141+24 being brought to Illinois for use here and is taxable under
2142+25 this Act, the "selling price" on which the tax is computed
2143+26 shall be reduced by an amount that represents a reasonable
2144+
2145+
2146+
2147+
2148+
2149+ HB3144 Enrolled - 60 - LRB103 26309 HLH 52670 b
2150+
2151+
2152+HB3144 Enrolled- 61 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 61 - LRB103 26309 HLH 52670 b
2153+ HB3144 Enrolled - 61 - LRB103 26309 HLH 52670 b
2154+1 allowance for depreciation for the period of prior
2155+2 out-of-state use.
2156+3 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
2157+4 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
2158+5 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
2159+6 103-154, eff. 6-30-23.)
2160+7 Section 15. The Service Occupation Tax Act is amended by
2161+8 changing Sections 3-5 and 3-10 as follows:
2162+9 (35 ILCS 115/3-5)
2163+10 Sec. 3-5. Exemptions. The following tangible personal
2164+11 property is exempt from the tax imposed by this Act:
2165+12 (1) Personal property sold by a corporation, society,
2166+13 association, foundation, institution, or organization, other
2167+14 than a limited liability company, that is organized and
2168+15 operated as a not-for-profit service enterprise for the
2169+16 benefit of persons 65 years of age or older if the personal
2170+17 property was not purchased by the enterprise for the purpose
2171+18 of resale by the enterprise.
2172+19 (2) Personal property purchased by a not-for-profit
2173+20 Illinois county fair association for use in conducting,
2174+21 operating, or promoting the county fair.
2175+22 (3) Personal property purchased by any not-for-profit arts
2176+23 or cultural organization that establishes, by proof required
2177+24 by the Department by rule, that it has received an exemption
2178+
2179+
2180+
2181+
2182+
2183+ HB3144 Enrolled - 61 - LRB103 26309 HLH 52670 b
2184+
2185+
2186+HB3144 Enrolled- 62 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 62 - LRB103 26309 HLH 52670 b
2187+ HB3144 Enrolled - 62 - LRB103 26309 HLH 52670 b
2188+1 under Section 501(c)(3) of the Internal Revenue Code and that
2189+2 is organized and operated primarily for the presentation or
2190+3 support of arts or cultural programming, activities, or
2191+4 services. These organizations include, but are not limited to,
2192+5 music and dramatic arts organizations such as symphony
2193+6 orchestras and theatrical groups, arts and cultural service
2194+7 organizations, local arts councils, visual arts organizations,
2195+8 and media arts organizations. On and after July 1, 2001 (the
2196+9 effective date of Public Act 92-35), however, an entity
2197+10 otherwise eligible for this exemption shall not make tax-free
2198+11 purchases unless it has an active identification number issued
2199+12 by the Department.
2200+13 (4) Legal tender, currency, medallions, or gold or silver
2201+14 coinage issued by the State of Illinois, the government of the
2202+15 United States of America, or the government of any foreign
2203+16 country, and bullion.
2204+17 (5) Until July 1, 2003 and beginning again on September 1,
2205+18 2004 through August 30, 2014, graphic arts machinery and
2206+19 equipment, including repair and replacement parts, both new
2207+20 and used, and including that manufactured on special order or
2208+21 purchased for lease, certified by the purchaser to be used
2209+22 primarily for graphic arts production. Equipment includes
2210+23 chemicals or chemicals acting as catalysts but only if the
2211+24 chemicals or chemicals acting as catalysts effect a direct and
2212+25 immediate change upon a graphic arts product. Beginning on
2213+26 July 1, 2017, graphic arts machinery and equipment is included
2214+
2215+
2216+
2217+
2218+
2219+ HB3144 Enrolled - 62 - LRB103 26309 HLH 52670 b
2220+
2221+
2222+HB3144 Enrolled- 63 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 63 - LRB103 26309 HLH 52670 b
2223+ HB3144 Enrolled - 63 - LRB103 26309 HLH 52670 b
2224+1 in the manufacturing and assembling machinery and equipment
2225+2 exemption under Section 2 of this Act.
2226+3 (6) Personal property sold by a teacher-sponsored student
2227+4 organization affiliated with an elementary or secondary school
2228+5 located in Illinois.
2229+6 (7) Farm machinery and equipment, both new and used,
2230+7 including that manufactured on special order, certified by the
2231+8 purchaser to be used primarily for production agriculture or
2232+9 State or federal agricultural programs, including individual
2233+10 replacement parts for the machinery and equipment, including
2234+11 machinery and equipment purchased for lease, and including
2235+12 implements of husbandry defined in Section 1-130 of the
2236+13 Illinois Vehicle Code, farm machinery and agricultural
2237+14 chemical and fertilizer spreaders, and nurse wagons required
2238+15 to be registered under Section 3-809 of the Illinois Vehicle
2239+16 Code, but excluding other motor vehicles required to be
2240+17 registered under the Illinois Vehicle Code. Horticultural
2241+18 polyhouses or hoop houses used for propagating, growing, or
2242+19 overwintering plants shall be considered farm machinery and
2243+20 equipment under this item (7). Agricultural chemical tender
2244+21 tanks and dry boxes shall include units sold separately from a
2245+22 motor vehicle required to be licensed and units sold mounted
2246+23 on a motor vehicle required to be licensed if the selling price
2247+24 of the tender is separately stated.
2248+25 Farm machinery and equipment shall include precision
2249+26 farming equipment that is installed or purchased to be
2250+
2251+
2252+
2253+
2254+
2255+ HB3144 Enrolled - 63 - LRB103 26309 HLH 52670 b
2256+
2257+
2258+HB3144 Enrolled- 64 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 64 - LRB103 26309 HLH 52670 b
2259+ HB3144 Enrolled - 64 - LRB103 26309 HLH 52670 b
2260+1 installed on farm machinery and equipment, including, but not
2261+2 limited to, tractors, harvesters, sprayers, planters, seeders,
2262+3 or spreaders. Precision farming equipment includes, but is not
2263+4 limited to, soil testing sensors, computers, monitors,
2264+5 software, global positioning and mapping systems, and other
2265+6 such equipment.
2266+7 Farm machinery and equipment also includes computers,
2267+8 sensors, software, and related equipment used primarily in the
2268+9 computer-assisted operation of production agriculture
2269+10 facilities, equipment, and activities such as, but not limited
2270+11 to, the collection, monitoring, and correlation of animal and
2271+12 crop data for the purpose of formulating animal diets and
2272+13 agricultural chemicals.
2273+14 Beginning on January 1, 2024, farm machinery and equipment
2274+15 also includes electrical power generation equipment used
2275+16 primarily for production agriculture.
2276+17 This item (7) is exempt from the provisions of Section
2277+18 3-55.
2278+19 (8) Until June 30, 2013, fuel and petroleum products sold
2279+20 to or used by an air common carrier, certified by the carrier
2280+21 to be used for consumption, shipment, or storage in the
2281+22 conduct of its business as an air common carrier, for a flight
2282+23 destined for or returning from a location or locations outside
2283+24 the United States without regard to previous or subsequent
2284+25 domestic stopovers.
2285+26 Beginning July 1, 2013, fuel and petroleum products sold
2286+
2287+
2288+
2289+
2290+
2291+ HB3144 Enrolled - 64 - LRB103 26309 HLH 52670 b
2292+
2293+
2294+HB3144 Enrolled- 65 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 65 - LRB103 26309 HLH 52670 b
2295+ HB3144 Enrolled - 65 - LRB103 26309 HLH 52670 b
2296+1 to or used by an air carrier, certified by the carrier to be
2297+2 used for consumption, shipment, or storage in the conduct of
2298+3 its business as an air common carrier, for a flight that (i) is
2299+4 engaged in foreign trade or is engaged in trade between the
2300+5 United States and any of its possessions and (ii) transports
2301+6 at least one individual or package for hire from the city of
2302+7 origination to the city of final destination on the same
2303+8 aircraft, without regard to a change in the flight number of
2304+9 that aircraft.
2305+10 (9) Proceeds of mandatory service charges separately
2306+11 stated on customers' bills for the purchase and consumption of
2307+12 food and beverages, to the extent that the proceeds of the
2308+13 service charge are in fact turned over as tips or as a
2309+14 substitute for tips to the employees who participate directly
2310+15 in preparing, serving, hosting or cleaning up the food or
2311+16 beverage function with respect to which the service charge is
2312+17 imposed.
2313+18 (10) Until July 1, 2003, oil field exploration, drilling,
2314+19 and production equipment, including (i) rigs and parts of
2315+20 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2316+21 pipe and tubular goods, including casing and drill strings,
2317+22 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2318+23 lines, (v) any individual replacement part for oil field
2319+24 exploration, drilling, and production equipment, and (vi)
2320+25 machinery and equipment purchased for lease; but excluding
2321+26 motor vehicles required to be registered under the Illinois
2322+
2323+
2324+
2325+
2326+
2327+ HB3144 Enrolled - 65 - LRB103 26309 HLH 52670 b
2328+
2329+
2330+HB3144 Enrolled- 66 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 66 - LRB103 26309 HLH 52670 b
2331+ HB3144 Enrolled - 66 - LRB103 26309 HLH 52670 b
2332+1 Vehicle Code.
2333+2 (11) Photoprocessing machinery and equipment, including
2334+3 repair and replacement parts, both new and used, including
2335+4 that manufactured on special order, certified by the purchaser
2336+5 to be used primarily for photoprocessing, and including
2337+6 photoprocessing machinery and equipment purchased for lease.
2338+7 (12) Until July 1, 2028, coal and aggregate exploration,
2339+8 mining, off-highway hauling, processing, maintenance, and
2340+9 reclamation equipment, including replacement parts and
2341+10 equipment, and including equipment purchased for lease, but
2342+11 excluding motor vehicles required to be registered under the
2343+12 Illinois Vehicle Code. The changes made to this Section by
2344+13 Public Act 97-767 apply on and after July 1, 2003, but no claim
2345+14 for credit or refund is allowed on or after August 16, 2013
2346+15 (the effective date of Public Act 98-456) for such taxes paid
2347+16 during the period beginning July 1, 2003 and ending on August
2348+17 16, 2013 (the effective date of Public Act 98-456).
2349+18 (13) Beginning January 1, 1992 and through June 30, 2016,
2350+19 food for human consumption that is to be consumed off the
2351+20 premises where it is sold (other than alcoholic beverages,
2352+21 soft drinks and food that has been prepared for immediate
2353+22 consumption) and prescription and non-prescription medicines,
2354+23 drugs, medical appliances, and insulin, urine testing
2355+24 materials, syringes, and needles used by diabetics, for human
2356+25 use, when purchased for use by a person receiving medical
2357+26 assistance under Article V of the Illinois Public Aid Code who
2358+
2359+
2360+
2361+
2362+
2363+ HB3144 Enrolled - 66 - LRB103 26309 HLH 52670 b
2364+
2365+
2366+HB3144 Enrolled- 67 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 67 - LRB103 26309 HLH 52670 b
2367+ HB3144 Enrolled - 67 - LRB103 26309 HLH 52670 b
2368+1 resides in a licensed long-term care facility, as defined in
2369+2 the Nursing Home Care Act, or in a licensed facility as defined
2370+3 in the ID/DD Community Care Act, the MC/DD Act, or the
2371+4 Specialized Mental Health Rehabilitation Act of 2013.
2372+5 (14) Semen used for artificial insemination of livestock
2373+6 for direct agricultural production.
2374+7 (15) Horses, or interests in horses, registered with and
2375+8 meeting the requirements of any of the Arabian Horse Club
2376+9 Registry of America, Appaloosa Horse Club, American Quarter
2377+10 Horse Association, United States Trotting Association, or
2378+11 Jockey Club, as appropriate, used for purposes of breeding or
2379+12 racing for prizes. This item (15) is exempt from the
2380+13 provisions of Section 3-55, and the exemption provided for
2381+14 under this item (15) applies for all periods beginning May 30,
2382+15 1995, but no claim for credit or refund is allowed on or after
2383+16 January 1, 2008 (the effective date of Public Act 95-88) for
2384+17 such taxes paid during the period beginning May 30, 2000 and
2385+18 ending on January 1, 2008 (the effective date of Public Act
2386+19 95-88).
2387+20 (16) Computers and communications equipment utilized for
2388+21 any hospital purpose and equipment used in the diagnosis,
2389+22 analysis, or treatment of hospital patients sold to a lessor
2390+23 who leases the equipment, under a lease of one year or longer
2391+24 executed or in effect at the time of the purchase, to a
2392+25 hospital that has been issued an active tax exemption
2393+26 identification number by the Department under Section 1g of
2394+
2395+
2396+
2397+
2398+
2399+ HB3144 Enrolled - 67 - LRB103 26309 HLH 52670 b
2400+
2401+
2402+HB3144 Enrolled- 68 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 68 - LRB103 26309 HLH 52670 b
2403+ HB3144 Enrolled - 68 - LRB103 26309 HLH 52670 b
2404+1 the Retailers' Occupation Tax Act.
2405+2 (17) Personal property sold to a lessor who leases the
2406+3 property, under a lease of one year or longer executed or in
2407+4 effect at the time of the purchase, to a governmental body that
2408+5 has been issued an active tax exemption identification number
2409+6 by the Department under Section 1g of the Retailers'
2410+7 Occupation Tax Act.
2411+8 (18) Beginning with taxable years ending on or after
2412+9 December 31, 1995 and ending with taxable years ending on or
2413+10 before December 31, 2004, personal property that is donated
2414+11 for disaster relief to be used in a State or federally declared
2415+12 disaster area in Illinois or bordering Illinois by a
2416+13 manufacturer or retailer that is registered in this State to a
2417+14 corporation, society, association, foundation, or institution
2418+15 that has been issued a sales tax exemption identification
2419+16 number by the Department that assists victims of the disaster
2420+17 who reside within the declared disaster area.
2421+18 (19) Beginning with taxable years ending on or after
2422+19 December 31, 1995 and ending with taxable years ending on or
2423+20 before December 31, 2004, personal property that is used in
2424+21 the performance of infrastructure repairs in this State,
2425+22 including, but not limited to, municipal roads and streets,
2426+23 access roads, bridges, sidewalks, waste disposal systems,
2427+24 water and sewer line extensions, water distribution and
2428+25 purification facilities, storm water drainage and retention
2429+26 facilities, and sewage treatment facilities, resulting from a
2430+
2431+
2432+
2433+
2434+
2435+ HB3144 Enrolled - 68 - LRB103 26309 HLH 52670 b
2436+
2437+
2438+HB3144 Enrolled- 69 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 69 - LRB103 26309 HLH 52670 b
2439+ HB3144 Enrolled - 69 - LRB103 26309 HLH 52670 b
2440+1 State or federally declared disaster in Illinois or bordering
2441+2 Illinois when such repairs are initiated on facilities located
2442+3 in the declared disaster area within 6 months after the
2443+4 disaster.
2444+5 (20) Beginning July 1, 1999, game or game birds sold at a
2445+6 "game breeding and hunting preserve area" as that term is used
2446+7 in the Wildlife Code. This paragraph is exempt from the
2447+8 provisions of Section 3-55.
2448+9 (21) A motor vehicle, as that term is defined in Section
2449+10 1-146 of the Illinois Vehicle Code, that is donated to a
2450+11 corporation, limited liability company, society, association,
2451+12 foundation, or institution that is determined by the
2452+13 Department to be organized and operated exclusively for
2453+14 educational purposes. For purposes of this exemption, "a
2454+15 corporation, limited liability company, society, association,
2455+16 foundation, or institution organized and operated exclusively
2456+17 for educational purposes" means all tax-supported public
2457+18 schools, private schools that offer systematic instruction in
2458+19 useful branches of learning by methods common to public
2459+20 schools and that compare favorably in their scope and
2460+21 intensity with the course of study presented in tax-supported
2461+22 schools, and vocational or technical schools or institutes
2462+23 organized and operated exclusively to provide a course of
2463+24 study of not less than 6 weeks duration and designed to prepare
2464+25 individuals to follow a trade or to pursue a manual,
2465+26 technical, mechanical, industrial, business, or commercial
2466+
2467+
2468+
2469+
2470+
2471+ HB3144 Enrolled - 69 - LRB103 26309 HLH 52670 b
2472+
2473+
2474+HB3144 Enrolled- 70 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 70 - LRB103 26309 HLH 52670 b
2475+ HB3144 Enrolled - 70 - LRB103 26309 HLH 52670 b
2476+1 occupation.
2477+2 (22) Beginning January 1, 2000, personal property,
2478+3 including food, purchased through fundraising events for the
2479+4 benefit of a public or private elementary or secondary school,
2480+5 a group of those schools, or one or more school districts if
2481+6 the events are sponsored by an entity recognized by the school
2482+7 district that consists primarily of volunteers and includes
2483+8 parents and teachers of the school children. This paragraph
2484+9 does not apply to fundraising events (i) for the benefit of
2485+10 private home instruction or (ii) for which the fundraising
2486+11 entity purchases the personal property sold at the events from
2487+12 another individual or entity that sold the property for the
2488+13 purpose of resale by the fundraising entity and that profits
2489+14 from the sale to the fundraising entity. This paragraph is
2490+15 exempt from the provisions of Section 3-55.
2491+16 (23) Beginning January 1, 2000 and through December 31,
2492+17 2001, new or used automatic vending machines that prepare and
2493+18 serve hot food and beverages, including coffee, soup, and
2494+19 other items, and replacement parts for these machines.
2495+20 Beginning January 1, 2002 and through June 30, 2003, machines
2496+21 and parts for machines used in commercial, coin-operated
2497+22 amusement and vending business if a use or occupation tax is
2498+23 paid on the gross receipts derived from the use of the
2499+24 commercial, coin-operated amusement and vending machines. This
2500+25 paragraph is exempt from the provisions of Section 3-55.
2501+26 (24) Beginning on August 2, 2001 (the effective date of
2502+
2503+
2504+
2505+
2506+
2507+ HB3144 Enrolled - 70 - LRB103 26309 HLH 52670 b
2508+
2509+
2510+HB3144 Enrolled- 71 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 71 - LRB103 26309 HLH 52670 b
2511+ HB3144 Enrolled - 71 - LRB103 26309 HLH 52670 b
2512+1 Public Act 92-227), computers and communications equipment
2513+2 utilized for any hospital purpose and equipment used in the
2514+3 diagnosis, analysis, or treatment of hospital patients sold to
2515+4 a lessor who leases the equipment, under a lease of one year or
2516+5 longer executed or in effect at the time of the purchase, to a
2517+6 hospital that has been issued an active tax exemption
2518+7 identification number by the Department under Section 1g of
2519+8 the Retailers' Occupation Tax Act. This paragraph is exempt
2520+9 from the provisions of Section 3-55.
2521+10 (25) Beginning on August 2, 2001 (the effective date of
2522+11 Public Act 92-227), personal property sold to a lessor who
2523+12 leases the property, under a lease of one year or longer
2524+13 executed or in effect at the time of the purchase, to a
2525+14 governmental body that has been issued an active tax exemption
2526+15 identification number by the Department under Section 1g of
2527+16 the Retailers' Occupation Tax Act. This paragraph is exempt
2528+17 from the provisions of Section 3-55.
2529+18 (26) Beginning on January 1, 2002 and through June 30,
2530+19 2016, tangible personal property purchased from an Illinois
2531+20 retailer by a taxpayer engaged in centralized purchasing
2532+21 activities in Illinois who will, upon receipt of the property
2533+22 in Illinois, temporarily store the property in Illinois (i)
2534+23 for the purpose of subsequently transporting it outside this
2535+24 State for use or consumption thereafter solely outside this
2536+25 State or (ii) for the purpose of being processed, fabricated,
2537+26 or manufactured into, attached to, or incorporated into other
2538+
2539+
2540+
2541+
2542+
2543+ HB3144 Enrolled - 71 - LRB103 26309 HLH 52670 b
2544+
2545+
2546+HB3144 Enrolled- 72 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 72 - LRB103 26309 HLH 52670 b
2547+ HB3144 Enrolled - 72 - LRB103 26309 HLH 52670 b
2548+1 tangible personal property to be transported outside this
2549+2 State and thereafter used or consumed solely outside this
2550+3 State. The Director of Revenue shall, pursuant to rules
2551+4 adopted in accordance with the Illinois Administrative
2552+5 Procedure Act, issue a permit to any taxpayer in good standing
2553+6 with the Department who is eligible for the exemption under
2554+7 this paragraph (26). The permit issued under this paragraph
2555+8 (26) shall authorize the holder, to the extent and in the
2556+9 manner specified in the rules adopted under this Act, to
2557+10 purchase tangible personal property from a retailer exempt
2558+11 from the taxes imposed by this Act. Taxpayers shall maintain
2559+12 all necessary books and records to substantiate the use and
2560+13 consumption of all such tangible personal property outside of
2561+14 the State of Illinois.
2562+15 (27) Beginning January 1, 2008, tangible personal property
2563+16 used in the construction or maintenance of a community water
2564+17 supply, as defined under Section 3.145 of the Environmental
2565+18 Protection Act, that is operated by a not-for-profit
2566+19 corporation that holds a valid water supply permit issued
2567+20 under Title IV of the Environmental Protection Act. This
2568+21 paragraph is exempt from the provisions of Section 3-55.
2569+22 (28) Tangible personal property sold to a
2570+23 public-facilities corporation, as described in Section
2571+24 11-65-10 of the Illinois Municipal Code, for purposes of
2572+25 constructing or furnishing a municipal convention hall, but
2573+26 only if the legal title to the municipal convention hall is
2574+
2575+
2576+
2577+
2578+
2579+ HB3144 Enrolled - 72 - LRB103 26309 HLH 52670 b
2580+
2581+
2582+HB3144 Enrolled- 73 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 73 - LRB103 26309 HLH 52670 b
2583+ HB3144 Enrolled - 73 - LRB103 26309 HLH 52670 b
2584+1 transferred to the municipality without any further
2585+2 consideration by or on behalf of the municipality at the time
2586+3 of the completion of the municipal convention hall or upon the
2587+4 retirement or redemption of any bonds or other debt
2588+5 instruments issued by the public-facilities corporation in
2589+6 connection with the development of the municipal convention
2590+7 hall. This exemption includes existing public-facilities
2591+8 corporations as provided in Section 11-65-25 of the Illinois
2592+9 Municipal Code. This paragraph is exempt from the provisions
2593+10 of Section 3-55.
2594+11 (29) Beginning January 1, 2010 and continuing through
2595+12 December 31, 2029, materials, parts, equipment, components,
2596+13 and furnishings incorporated into or upon an aircraft as part
2597+14 of the modification, refurbishment, completion, replacement,
2598+15 repair, or maintenance of the aircraft. This exemption
2599+16 includes consumable supplies used in the modification,
2600+17 refurbishment, completion, replacement, repair, and
2601+18 maintenance of aircraft. However, until January 1, 2024, this
2602+19 exemption excludes any materials, parts, equipment,
2603+20 components, and consumable supplies used in the modification,
2604+21 replacement, repair, and maintenance of aircraft engines or
2605+22 power plants, whether such engines or power plants are
2606+23 installed or uninstalled upon any such aircraft. "Consumable
2607+24 supplies" include, but are not limited to, adhesive, tape,
2608+25 sandpaper, general purpose lubricants, cleaning solution,
2609+26 latex gloves, and protective films.
2610+
2611+
2612+
2613+
2614+
2615+ HB3144 Enrolled - 73 - LRB103 26309 HLH 52670 b
2616+
2617+
2618+HB3144 Enrolled- 74 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 74 - LRB103 26309 HLH 52670 b
2619+ HB3144 Enrolled - 74 - LRB103 26309 HLH 52670 b
2620+1 Beginning January 1, 2010 and continuing through December
2621+2 31, 2023, this exemption applies only to the transfer of
2622+3 qualifying tangible personal property incident to the
2623+4 modification, refurbishment, completion, replacement, repair,
2624+5 or maintenance of an aircraft by persons who (i) hold an Air
2625+6 Agency Certificate and are empowered to operate an approved
2626+7 repair station by the Federal Aviation Administration, (ii)
2627+8 have a Class IV Rating, and (iii) conduct operations in
2628+9 accordance with Part 145 of the Federal Aviation Regulations.
2629+10 The exemption does not include aircraft operated by a
2630+11 commercial air carrier providing scheduled passenger air
2631+12 service pursuant to authority issued under Part 121 or Part
2632+13 129 of the Federal Aviation Regulations. From January 1, 2024
2633+14 through December 31, 2029, this exemption applies only to the
2634+15 use of qualifying tangible personal property by: (A) persons
2635+16 who modify, refurbish, complete, repair, replace, or maintain
2636+17 aircraft and who (i) hold an Air Agency Certificate and are
2637+18 empowered to operate an approved repair station by the Federal
2638+19 Aviation Administration, (ii) have a Class IV Rating, and
2639+20 (iii) conduct operations in accordance with Part 145 of the
2640+21 Federal Aviation Regulations; and (B) persons who engage in
2641+22 the modification, replacement, repair, and maintenance of
2642+23 aircraft engines or power plants without regard to whether or
2643+24 not those persons meet the qualifications of item (A).
2644+25 The changes made to this paragraph (29) by Public Act
2645+26 98-534 are declarative of existing law. It is the intent of the
2646+
2647+
2648+
2649+
2650+
2651+ HB3144 Enrolled - 74 - LRB103 26309 HLH 52670 b
2652+
2653+
2654+HB3144 Enrolled- 75 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 75 - LRB103 26309 HLH 52670 b
2655+ HB3144 Enrolled - 75 - LRB103 26309 HLH 52670 b
2656+1 General Assembly that the exemption under this paragraph (29)
2657+2 applies continuously from January 1, 2010 through December 31,
2658+3 2024; however, no claim for credit or refund is allowed for
2659+4 taxes paid as a result of the disallowance of this exemption on
2660+5 or after January 1, 2015 and prior to February 5, 2020 (the
2661+6 effective date of Public Act 101-629).
2662+7 (30) Beginning January 1, 2017 and through December 31,
2663+8 2026, menstrual pads, tampons, and menstrual cups.
2664+9 (31) Tangible personal property transferred to a purchaser
2665+10 who is exempt from tax by operation of federal law. This
2666+11 paragraph is exempt from the provisions of Section 3-55.
2667+12 (32) Qualified tangible personal property used in the
2668+13 construction or operation of a data center that has been
2669+14 granted a certificate of exemption by the Department of
2670+15 Commerce and Economic Opportunity, whether that tangible
2671+16 personal property is purchased by the owner, operator, or
2672+17 tenant of the data center or by a contractor or subcontractor
2673+18 of the owner, operator, or tenant. Data centers that would
2674+19 have qualified for a certificate of exemption prior to January
2675+20 1, 2020 had Public Act 101-31 been in effect, may apply for and
2676+21 obtain an exemption for subsequent purchases of computer
2677+22 equipment or enabling software purchased or leased to upgrade,
2678+23 supplement, or replace computer equipment or enabling software
2679+24 purchased or leased in the original investment that would have
2680+25 qualified.
2681+26 The Department of Commerce and Economic Opportunity shall
2682+
2683+
2684+
2685+
2686+
2687+ HB3144 Enrolled - 75 - LRB103 26309 HLH 52670 b
2688+
2689+
2690+HB3144 Enrolled- 76 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 76 - LRB103 26309 HLH 52670 b
2691+ HB3144 Enrolled - 76 - LRB103 26309 HLH 52670 b
2692+1 grant a certificate of exemption under this item (32) to
2693+2 qualified data centers as defined by Section 605-1025 of the
2694+3 Department of Commerce and Economic Opportunity Law of the
2695+4 Civil Administrative Code of Illinois.
2696+5 For the purposes of this item (32):
2697+6 "Data center" means a building or a series of
2698+7 buildings rehabilitated or constructed to house working
2699+8 servers in one physical location or multiple sites within
2700+9 the State of Illinois.
2701+10 "Qualified tangible personal property" means:
2702+11 electrical systems and equipment; climate control and
2703+12 chilling equipment and systems; mechanical systems and
2704+13 equipment; monitoring and secure systems; emergency
2705+14 generators; hardware; computers; servers; data storage
2706+15 devices; network connectivity equipment; racks; cabinets;
2707+16 telecommunications cabling infrastructure; raised floor
2708+17 systems; peripheral components or systems; software;
2709+18 mechanical, electrical, or plumbing systems; battery
2710+19 systems; cooling systems and towers; temperature control
2711+20 systems; other cabling; and other data center
2712+21 infrastructure equipment and systems necessary to operate
2713+22 qualified tangible personal property, including fixtures;
2714+23 and component parts of any of the foregoing, including
2715+24 installation, maintenance, repair, refurbishment, and
2716+25 replacement of qualified tangible personal property to
2717+26 generate, transform, transmit, distribute, or manage
2718+
2719+
2720+
2721+
2722+
2723+ HB3144 Enrolled - 76 - LRB103 26309 HLH 52670 b
2724+
2725+
2726+HB3144 Enrolled- 77 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 77 - LRB103 26309 HLH 52670 b
2727+ HB3144 Enrolled - 77 - LRB103 26309 HLH 52670 b
2728+1 electricity necessary to operate qualified tangible
2729+2 personal property; and all other tangible personal
2730+3 property that is essential to the operations of a computer
2731+4 data center. The term "qualified tangible personal
2732+5 property" also includes building materials physically
2733+6 incorporated into in to the qualifying data center. To
2734+7 document the exemption allowed under this Section, the
2735+8 retailer must obtain from the purchaser a copy of the
2736+9 certificate of eligibility issued by the Department of
2737+10 Commerce and Economic Opportunity.
2738+11 This item (32) is exempt from the provisions of Section
2739+12 3-55.
2740+13 (33) Beginning July 1, 2022, breast pumps, breast pump
2741+14 collection and storage supplies, and breast pump kits. This
2742+15 item (33) is exempt from the provisions of Section 3-55. As
2743+16 used in this item (33):
2744+17 "Breast pump" means an electrically controlled or
2745+18 manually controlled pump device designed or marketed to be
2746+19 used to express milk from a human breast during lactation,
2747+20 including the pump device and any battery, AC adapter, or
2748+21 other power supply unit that is used to power the pump
2749+22 device and is packaged and sold with the pump device at the
2750+23 time of sale.
2751+24 "Breast pump collection and storage supplies" means
2752+25 items of tangible personal property designed or marketed
2753+26 to be used in conjunction with a breast pump to collect
2754+
2755+
2756+
2757+
2758+
2759+ HB3144 Enrolled - 77 - LRB103 26309 HLH 52670 b
2760+
2761+
2762+HB3144 Enrolled- 78 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 78 - LRB103 26309 HLH 52670 b
2763+ HB3144 Enrolled - 78 - LRB103 26309 HLH 52670 b
2764+1 milk expressed from a human breast and to store collected
2765+2 milk until it is ready for consumption.
2766+3 "Breast pump collection and storage supplies"
2767+4 includes, but is not limited to: breast shields and breast
2768+5 shield connectors; breast pump tubes and tubing adapters;
2769+6 breast pump valves and membranes; backflow protectors and
2770+7 backflow protector adaptors; bottles and bottle caps
2771+8 specific to the operation of the breast pump; and breast
2772+9 milk storage bags.
2773+10 "Breast pump collection and storage supplies" does not
2774+11 include: (1) bottles and bottle caps not specific to the
2775+12 operation of the breast pump; (2) breast pump travel bags
2776+13 and other similar carrying accessories, including ice
2777+14 packs, labels, and other similar products; (3) breast pump
2778+15 cleaning supplies; (4) nursing bras, bra pads, breast
2779+16 shells, and other similar products; and (5) creams,
2780+17 ointments, and other similar products that relieve
2781+18 breastfeeding-related symptoms or conditions of the
2782+19 breasts or nipples, unless sold as part of a breast pump
2783+20 kit that is pre-packaged by the breast pump manufacturer
2784+21 or distributor.
2785+22 "Breast pump kit" means a kit that: (1) contains no
2786+23 more than a breast pump, breast pump collection and
2787+24 storage supplies, a rechargeable battery for operating the
2788+25 breast pump, a breastmilk cooler, bottle stands, ice
2789+26 packs, and a breast pump carrying case; and (2) is
2790+
2791+
2792+
2793+
2794+
2795+ HB3144 Enrolled - 78 - LRB103 26309 HLH 52670 b
2796+
2797+
2798+HB3144 Enrolled- 79 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 79 - LRB103 26309 HLH 52670 b
2799+ HB3144 Enrolled - 79 - LRB103 26309 HLH 52670 b
2800+1 pre-packaged as a breast pump kit by the breast pump
2801+2 manufacturer or distributor.
2802+3 (34) Tangible personal property sold by or on behalf of
2803+4 the State Treasurer pursuant to the Revised Uniform Unclaimed
2804+5 Property Act. This item (34) is exempt from the provisions of
2805+6 Section 3-55.
2806+7 (35) Beginning on January 1, 2024, tangible personal
2807+8 property purchased by an active duty member of the armed
2808+9 forces of the United States who presents valid military
2809+10 identification and purchases the property using a form of
2810+11 payment where the federal government is the payor. The member
2811+12 of the armed forces must complete, at the point of sale, a form
2812+13 prescribed by the Department of Revenue documenting that the
2813+14 transaction is eligible for the exemption under this
2814+15 paragraph. Retailers must keep the form as documentation of
2815+16 the exemption in their records for a period of not less than 6
2816+17 years. "Armed forces of the United States" means the United
2817+18 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2818+19 This paragraph is exempt from the provisions of Section 3-55.
2819+20 (36) Beginning on January 1, 2026, as further defined in
2820+21 Section 3-10, food prepared for immediate consumption and
2821+22 transferred incident to a sale of service subject to this Act
2822+23 or the Service Use Tax Act by an entity licensed under the
2823+24 Hospital Licensing Act, the Nursing Home Care Act, the
2824+25 Assisted Living and Shared Housing Act, the ID/DD Community
2825+26 Care Act, the MC/DD Act, the Specialized Mental Health
2826+
2827+
2828+
2829+
2830+
2831+ HB3144 Enrolled - 79 - LRB103 26309 HLH 52670 b
2832+
2833+
2834+HB3144 Enrolled- 80 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 80 - LRB103 26309 HLH 52670 b
2835+ HB3144 Enrolled - 80 - LRB103 26309 HLH 52670 b
2836+1 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2837+2 an entity that holds a permit issued pursuant to the Life Care
2838+3 Facilities Act. This item (36) is exempt from the provisions
2839+4 of Section 3-55.
2840+5 (37) Beginning on January 1, 2026, as further defined in
2841+6 Section 3-10, food for human consumption that is to be
2842+7 consumed off the premises where it is sold (other than
2843+8 alcoholic beverages, food consisting of or infused with adult
2844+9 use cannabis, soft drinks, candy, and food that has been
2845+10 prepared for immediate consumption). This item (37) is exempt
2846+11 from the provisions of Section 3-55.
2847+12 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2848+13 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2849+14 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2850+15 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2851+16 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2852+17 revised 12-12-23.)
2853+18 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2854+19 Sec. 3-10. Rate of tax. Unless otherwise provided in this
2855+20 Section, the tax imposed by this Act is at the rate of 6.25% of
2856+21 the "selling price", as defined in Section 2 of the Service Use
2857+22 Tax Act, of the tangible personal property. For the purpose of
2858+23 computing this tax, in no event shall the "selling price" be
2859+24 less than the cost price to the serviceman of the tangible
2860+25 personal property transferred. The selling price of each item
2861+
2862+
2863+
2864+
2865+
2866+ HB3144 Enrolled - 80 - LRB103 26309 HLH 52670 b
2867+
2868+
2869+HB3144 Enrolled- 81 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 81 - LRB103 26309 HLH 52670 b
2870+ HB3144 Enrolled - 81 - LRB103 26309 HLH 52670 b
2871+1 of tangible personal property transferred as an incident of a
2872+2 sale of service may be shown as a distinct and separate item on
2873+3 the serviceman's billing to the service customer. If the
2874+4 selling price is not so shown, the selling price of the
2875+5 tangible personal property is deemed to be 50% of the
2876+6 serviceman's entire billing to the service customer. When,
2877+7 however, a serviceman contracts to design, develop, and
2878+8 produce special order machinery or equipment, the tax imposed
2879+9 by this Act shall be based on the serviceman's cost price of
2880+10 the tangible personal property transferred incident to the
2881+11 completion of the contract.
2882+12 Beginning on July 1, 2000 and through December 31, 2000,
2883+13 with respect to motor fuel, as defined in Section 1.1 of the
2884+14 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2885+15 the Use Tax Act, the tax is imposed at the rate of 1.25%.
2886+16 With respect to gasohol, as defined in the Use Tax Act, the
2887+17 tax imposed by this Act shall apply to (i) 70% of the cost
2888+18 price of property transferred as an incident to the sale of
2889+19 service on or after January 1, 1990, and before July 1, 2003,
2890+20 (ii) 80% of the selling price of property transferred as an
2891+21 incident to the sale of service on or after July 1, 2003 and on
2892+22 or before July 1, 2017, (iii) 100% of the selling price of
2893+23 property transferred as an incident to the sale of service
2894+24 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
2895+25 the selling price of property transferred as an incident to
2896+26 the sale of service on or after January 1, 2024 and on or
2897+
2898+
2899+
2900+
2901+
2902+ HB3144 Enrolled - 81 - LRB103 26309 HLH 52670 b
2903+
2904+
2905+HB3144 Enrolled- 82 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 82 - LRB103 26309 HLH 52670 b
2906+ HB3144 Enrolled - 82 - LRB103 26309 HLH 52670 b
2907+1 before December 31, 2028, and (v) 100% of the selling price of
2908+2 property transferred as an incident to the sale of service
2909+3 after December 31, 2028. If, at any time, however, the tax
2910+4 under this Act on sales of gasohol, as defined in the Use Tax
2911+5 Act, is imposed at the rate of 1.25%, then the tax imposed by
2912+6 this Act applies to 100% of the proceeds of sales of gasohol
2913+7 made during that time.
2914+8 With respect to mid-range ethanol blends, as defined in
2915+9 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2916+10 applies to (i) 80% of the selling price of property
2917+11 transferred as an incident to the sale of service on or after
2918+12 January 1, 2024 and on or before December 31, 2028 and (ii)
2919+13 100% of the selling price of property transferred as an
2920+14 incident to the sale of service after December 31, 2028. If, at
2921+15 any time, however, the tax under this Act on sales of mid-range
2922+16 ethanol blends is imposed at the rate of 1.25%, then the tax
2923+17 imposed by this Act applies to 100% of the selling price of
2924+18 mid-range ethanol blends transferred as an incident to the
2925+19 sale of service during that time.
2926+20 With respect to majority blended ethanol fuel, as defined
2927+21 in the Use Tax Act, the tax imposed by this Act does not apply
2928+22 to the selling price of property transferred as an incident to
2929+23 the sale of service on or after July 1, 2003 and on or before
2930+24 December 31, 2028 but applies to 100% of the selling price
2931+25 thereafter.
2932+26 With respect to biodiesel blends, as defined in the Use
2933+
2934+
2935+
2936+
2937+
2938+ HB3144 Enrolled - 82 - LRB103 26309 HLH 52670 b
2939+
2940+
2941+HB3144 Enrolled- 83 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 83 - LRB103 26309 HLH 52670 b
2942+ HB3144 Enrolled - 83 - LRB103 26309 HLH 52670 b
2943+1 Tax Act, with no less than 1% and no more than 10% biodiesel,
2944+2 the tax imposed by this Act applies to (i) 80% of the selling
2945+3 price of property transferred as an incident to the sale of
2946+4 service on or after July 1, 2003 and on or before December 31,
2947+5 2018 and (ii) 100% of the proceeds of the selling price after
2948+6 December 31, 2018 and before January 1, 2024. On and after
2949+7 January 1, 2024 and on or before December 31, 2030, the
2950+8 taxation of biodiesel, renewable diesel, and biodiesel blends
2951+9 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2952+10 at any time, however, the tax under this Act on sales of
2953+11 biodiesel blends, as defined in the Use Tax Act, with no less
2954+12 than 1% and no more than 10% biodiesel is imposed at the rate
2955+13 of 1.25%, then the tax imposed by this Act applies to 100% of
2956+14 the proceeds of sales of biodiesel blends with no less than 1%
2957+15 and no more than 10% biodiesel made during that time.
2958+16 With respect to biodiesel, as defined in the Use Tax Act,
2959+17 and biodiesel blends, as defined in the Use Tax Act, with more
2960+18 than 10% but no more than 99% biodiesel material, the tax
2961+19 imposed by this Act does not apply to the proceeds of the
2962+20 selling price of property transferred as an incident to the
2963+21 sale of service on or after July 1, 2003 and on or before
2964+22 December 31, 2023. On and after January 1, 2024 and on or
2965+23 before December 31, 2030, the taxation of biodiesel, renewable
2966+24 diesel, and biodiesel blends shall be as provided in Section
2967+25 3-5.1 of the Use Tax Act.
2968+26 At the election of any registered serviceman made for each
2969+
2970+
2971+
2972+
2973+
2974+ HB3144 Enrolled - 83 - LRB103 26309 HLH 52670 b
2975+
2976+
2977+HB3144 Enrolled- 84 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 84 - LRB103 26309 HLH 52670 b
2978+ HB3144 Enrolled - 84 - LRB103 26309 HLH 52670 b
2979+1 fiscal year, sales of service in which the aggregate annual
2980+2 cost price of tangible personal property transferred as an
2981+3 incident to the sales of service is less than 35%, or 75% in
2982+4 the case of servicemen transferring prescription drugs or
2983+5 servicemen engaged in graphic arts production, of the
2984+6 aggregate annual total gross receipts from all sales of
2985+7 service, the tax imposed by this Act shall be based on the
2986+8 serviceman's cost price of the tangible personal property
2987+9 transferred incident to the sale of those services.
2988+10 Until July 1, 2022 and from beginning again on July 1, 2023
2989+11 through December 31, 2025, the tax shall be imposed at the rate
2990+12 of 1% on food prepared for immediate consumption and
2991+13 transferred incident to a sale of service subject to this Act
2992+14 or the Service Use Tax Act by an entity licensed under the
2993+15 Hospital Licensing Act, the Nursing Home Care Act, the
2994+16 Assisted Living and Shared Housing Act, the ID/DD Community
2995+17 Care Act, the MC/DD Act, the Specialized Mental Health
2996+18 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
2997+19 an entity that holds a permit issued pursuant to the Life Care
2998+20 Facilities Act. Until July 1, 2022 and from beginning again on
2999+21 July 1, 2023 through December 31, 2025, the tax shall also be
3000+22 imposed at the rate of 1% on food for human consumption that is
3001+23 to be consumed off the premises where it is sold (other than
3002+24 alcoholic beverages, food consisting of or infused with adult
3003+25 use cannabis, soft drinks, and food that has been prepared for
3004+26 immediate consumption and is not otherwise included in this
3005+
3006+
3007+
3008+
3009+
3010+ HB3144 Enrolled - 84 - LRB103 26309 HLH 52670 b
3011+
3012+
3013+HB3144 Enrolled- 85 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 85 - LRB103 26309 HLH 52670 b
3014+ HB3144 Enrolled - 85 - LRB103 26309 HLH 52670 b
3015+1 paragraph).
3016+2 Beginning on July 1, 2022 and until July 1, 2023, the tax
3017+3 shall be imposed at the rate of 0% on food prepared for
3018+4 immediate consumption and transferred incident to a sale of
3019+5 service subject to this Act or the Service Use Tax Act by an
3020+6 entity licensed under the Hospital Licensing Act, the Nursing
3021+7 Home Care Act, the Assisted Living and Shared Housing Act, the
3022+8 ID/DD Community Care Act, the MC/DD Act, the Specialized
3023+9 Mental Health Rehabilitation Act of 2013, or the Child Care
3024+10 Act of 1969, or an entity that holds a permit issued pursuant
3025+11 to the Life Care Facilities Act. Beginning July 1, 2022 and
3026+12 until July 1, 2023, the tax shall also be imposed at the rate
3027+13 of 0% on food for human consumption that is to be consumed off
3028+14 the premises where it is sold (other than alcoholic beverages,
3029+15 food consisting of or infused with adult use cannabis, soft
3030+16 drinks, and food that has been prepared for immediate
3031+17 consumption and is not otherwise included in this paragraph).
3032+18 On and after January 1, 2026, food prepared for immediate
3033+19 consumption and transferred incident to a sale of service
3034+20 subject to this Act or the Service Use Tax Act by an entity
3035+21 licensed under the Hospital Licensing Act, the Nursing Home
3036+22 Care Act, the Assisted Living and Shared Housing Act, the
3037+23 ID/DD Community Care Act, the MC/DD Act, the Specialized
3038+24 Mental Health Rehabilitation Act of 2013, or the Child Care
3039+25 Act of 1969, or an entity that holds a permit issued pursuant
3040+26 to the Life Care Facilities Act is exempt from the tax imposed
3041+
3042+
3043+
3044+
3045+
3046+ HB3144 Enrolled - 85 - LRB103 26309 HLH 52670 b
3047+
3048+
3049+HB3144 Enrolled- 86 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 86 - LRB103 26309 HLH 52670 b
3050+ HB3144 Enrolled - 86 - LRB103 26309 HLH 52670 b
3051+1 by this Act. On and after January 1, 2026, food for human
3052+2 consumption that is to be consumed off the premises where it is
3053+3 sold (other than alcoholic beverages, food consisting of or
3054+4 infused with adult use cannabis, soft drinks, candy, and food
3055+5 that has been prepared for immediate consumption and is not
3056+6 otherwise included in this paragraph) is exempt from the tax
3057+7 imposed by this Act.
3058+8 The tax shall also be imposed at the rate of 1% on
3059+9 prescription and nonprescription medicines, drugs, medical
3060+10 appliances, products classified as Class III medical devices
3061+11 by the United States Food and Drug Administration that are
3062+12 used for cancer treatment pursuant to a prescription, as well
3063+13 as any accessories and components related to those devices,
3064+14 modifications to a motor vehicle for the purpose of rendering
3065+15 it usable by a person with a disability, and insulin, blood
3066+16 sugar testing materials, syringes, and needles used by human
3067+17 diabetics. For the purposes of this Section, until September
3068+18 1, 2009: the term "soft drinks" means any complete, finished,
3069+19 ready-to-use, non-alcoholic drink, whether carbonated or not,
3070+20 including, but not limited to, soda water, cola, fruit juice,
3071+21 vegetable juice, carbonated water, and all other preparations
3072+22 commonly known as soft drinks of whatever kind or description
3073+23 that are contained in any closed or sealed can, carton, or
3074+24 container, regardless of size; but "soft drinks" does not
3075+25 include coffee, tea, non-carbonated water, infant formula,
3076+26 milk or milk products as defined in the Grade A Pasteurized
3077+
3078+
3079+
3080+
3081+
3082+ HB3144 Enrolled - 86 - LRB103 26309 HLH 52670 b
3083+
3084+
3085+HB3144 Enrolled- 87 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 87 - LRB103 26309 HLH 52670 b
3086+ HB3144 Enrolled - 87 - LRB103 26309 HLH 52670 b
3087+1 Milk and Milk Products Act, or drinks containing 50% or more
3088+2 natural fruit or vegetable juice.
3089+3 Notwithstanding any other provisions of this Act,
3090+4 beginning September 1, 2009, "soft drinks" means non-alcoholic
3091+5 beverages that contain natural or artificial sweeteners. "Soft
3092+6 drinks" does not include beverages that contain milk or milk
3093+7 products, soy, rice or similar milk substitutes, or greater
3094+8 than 50% of vegetable or fruit juice by volume.
3095+9 Until August 1, 2009, and notwithstanding any other
3096+10 provisions of this Act, "food for human consumption that is to
3097+11 be consumed off the premises where it is sold" includes all
3098+12 food sold through a vending machine, except soft drinks and
3099+13 food products that are dispensed hot from a vending machine,
3100+14 regardless of the location of the vending machine. Beginning
3101+15 August 1, 2009, and notwithstanding any other provisions of
3102+16 this Act, "food for human consumption that is to be consumed
3103+17 off the premises where it is sold" includes all food sold
3104+18 through a vending machine, except soft drinks, candy, and food
3105+19 products that are dispensed hot from a vending machine,
3106+20 regardless of the location of the vending machine.
3107+21 Notwithstanding any other provisions of this Act,
3108+22 beginning September 1, 2009, "food for human consumption that
3109+23 is to be consumed off the premises where it is sold" does not
3110+24 include candy. For purposes of this Section, "candy" means a
3111+25 preparation of sugar, honey, or other natural or artificial
3112+26 sweeteners in combination with chocolate, fruits, nuts or
3113+
3114+
3115+
3116+
3117+
3118+ HB3144 Enrolled - 87 - LRB103 26309 HLH 52670 b
3119+
3120+
3121+HB3144 Enrolled- 88 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 88 - LRB103 26309 HLH 52670 b
3122+ HB3144 Enrolled - 88 - LRB103 26309 HLH 52670 b
3123+1 other ingredients or flavorings in the form of bars, drops, or
3124+2 pieces. "Candy" does not include any preparation that contains
3125+3 flour or requires refrigeration.
3126+4 Notwithstanding any other provisions of this Act,
3127+5 beginning September 1, 2009, "nonprescription medicines and
3128+6 drugs" does not include grooming and hygiene products. For
3129+7 purposes of this Section, "grooming and hygiene products"
3130+8 includes, but is not limited to, soaps and cleaning solutions,
3131+9 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3132+10 lotions and screens, unless those products are available by
3133+11 prescription only, regardless of whether the products meet the
3134+12 definition of "over-the-counter-drugs". For the purposes of
3135+13 this paragraph, "over-the-counter-drug" means a drug for human
3136+14 use that contains a label that identifies the product as a drug
3137+15 as required by 21 CFR 201.66. The "over-the-counter-drug"
3138+16 label includes:
3139+17 (A) a "Drug Facts" panel; or
3140+18 (B) a statement of the "active ingredient(s)" with a
3141+19 list of those ingredients contained in the compound,
3142+20 substance or preparation.
3143+21 Beginning on January 1, 2014 (the effective date of Public
3144+22 Act 98-122), "prescription and nonprescription medicines and
3145+23 drugs" includes medical cannabis purchased from a registered
3146+24 dispensing organization under the Compassionate Use of Medical
3147+25 Cannabis Program Act.
3148+26 As used in this Section, "adult use cannabis" means
3149+
3150+
3151+
3152+
3153+
3154+ HB3144 Enrolled - 88 - LRB103 26309 HLH 52670 b
3155+
3156+
3157+HB3144 Enrolled- 89 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 89 - LRB103 26309 HLH 52670 b
3158+ HB3144 Enrolled - 89 - LRB103 26309 HLH 52670 b
3159+1 cannabis subject to tax under the Cannabis Cultivation
3160+2 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3161+3 and does not include cannabis subject to tax under the
3162+4 Compassionate Use of Medical Cannabis Program Act.
3163+5 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
3164+6 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
3165+7 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
3166+8 103-154, eff. 6-30-23.)
3167+9 Section 20. The Retailers' Occupation Tax Act is amended
3168+10 by changing Sections 2-5, 2-10, and 2-27 as follows:
3169+11 (35 ILCS 120/2-5)
3170+12 Sec. 2-5. Exemptions. Gross receipts from proceeds from
3171+13 the sale of the following tangible personal property are
3172+14 exempt from the tax imposed by this Act:
3173+15 (1) Farm chemicals.
3174+16 (2) Farm machinery and equipment, both new and used,
3175+17 including that manufactured on special order, certified by
3176+18 the purchaser to be used primarily for production
3177+19 agriculture or State or federal agricultural programs,
3178+20 including individual replacement parts for the machinery
3179+21 and equipment, including machinery and equipment purchased
3180+22 for lease, and including implements of husbandry defined
3181+23 in Section 1-130 of the Illinois Vehicle Code, farm
3182+24 machinery and agricultural chemical and fertilizer
3183+
3184+
3185+
3186+
3187+
3188+ HB3144 Enrolled - 89 - LRB103 26309 HLH 52670 b
3189+
3190+
3191+HB3144 Enrolled- 90 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 90 - LRB103 26309 HLH 52670 b
3192+ HB3144 Enrolled - 90 - LRB103 26309 HLH 52670 b
3193+1 spreaders, and nurse wagons required to be registered
3194+2 under Section 3-809 of the Illinois Vehicle Code, but
3195+3 excluding other motor vehicles required to be registered
3196+4 under the Illinois Vehicle Code. Horticultural polyhouses
3197+5 or hoop houses used for propagating, growing, or
3198+6 overwintering plants shall be considered farm machinery
3199+7 and equipment under this item (2). Agricultural chemical
3200+8 tender tanks and dry boxes shall include units sold
3201+9 separately from a motor vehicle required to be licensed
3202+10 and units sold mounted on a motor vehicle required to be
3203+11 licensed, if the selling price of the tender is separately
3204+12 stated.
3205+13 Farm machinery and equipment shall include precision
3206+14 farming equipment that is installed or purchased to be
3207+15 installed on farm machinery and equipment including, but
3208+16 not limited to, tractors, harvesters, sprayers, planters,
3209+17 seeders, or spreaders. Precision farming equipment
3210+18 includes, but is not limited to, soil testing sensors,
3211+19 computers, monitors, software, global positioning and
3212+20 mapping systems, and other such equipment.
3213+21 Farm machinery and equipment also includes computers,
3214+22 sensors, software, and related equipment used primarily in
3215+23 the computer-assisted operation of production agriculture
3216+24 facilities, equipment, and activities such as, but not
3217+25 limited to, the collection, monitoring, and correlation of
3218+26 animal and crop data for the purpose of formulating animal
3219+
3220+
3221+
3222+
3223+
3224+ HB3144 Enrolled - 90 - LRB103 26309 HLH 52670 b
3225+
3226+
3227+HB3144 Enrolled- 91 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 91 - LRB103 26309 HLH 52670 b
3228+ HB3144 Enrolled - 91 - LRB103 26309 HLH 52670 b
3229+1 diets and agricultural chemicals.
3230+2 Beginning on January 1, 2024, farm machinery and
3231+3 equipment also includes electrical power generation
3232+4 equipment used primarily for production agriculture.
3233+5 This item (2) is exempt from the provisions of Section
3234+6 2-70.
3235+7 (3) Until July 1, 2003, distillation machinery and
3236+8 equipment, sold as a unit or kit, assembled or installed
3237+9 by the retailer, certified by the user to be used only for
3238+10 the production of ethyl alcohol that will be used for
3239+11 consumption as motor fuel or as a component of motor fuel
3240+12 for the personal use of the user, and not subject to sale
3241+13 or resale.
3242+14 (4) Until July 1, 2003 and beginning again September
3243+15 1, 2004 through August 30, 2014, graphic arts machinery
3244+16 and equipment, including repair and replacement parts,
3245+17 both new and used, and including that manufactured on
3246+18 special order or purchased for lease, certified by the
3247+19 purchaser to be used primarily for graphic arts
3248+20 production. Equipment includes chemicals or chemicals
3249+21 acting as catalysts but only if the chemicals or chemicals
3250+22 acting as catalysts effect a direct and immediate change
3251+23 upon a graphic arts product. Beginning on July 1, 2017,
3252+24 graphic arts machinery and equipment is included in the
3253+25 manufacturing and assembling machinery and equipment
3254+26 exemption under paragraph (14).
3255+
3256+
3257+
3258+
3259+
3260+ HB3144 Enrolled - 91 - LRB103 26309 HLH 52670 b
3261+
3262+
3263+HB3144 Enrolled- 92 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 92 - LRB103 26309 HLH 52670 b
3264+ HB3144 Enrolled - 92 - LRB103 26309 HLH 52670 b
3265+1 (5) A motor vehicle that is used for automobile
3266+2 renting, as defined in the Automobile Renting Occupation
3267+3 and Use Tax Act. This paragraph is exempt from the
3268+4 provisions of Section 2-70.
3269+5 (6) Personal property sold by a teacher-sponsored
3270+6 student organization affiliated with an elementary or
3271+7 secondary school located in Illinois.
3272+8 (7) Until July 1, 2003, proceeds of that portion of
3273+9 the selling price of a passenger car the sale of which is
3274+10 subject to the Replacement Vehicle Tax.
3275+11 (8) Personal property sold to an Illinois county fair
3276+12 association for use in conducting, operating, or promoting
3277+13 the county fair.
3278+14 (9) Personal property sold to a not-for-profit arts or
3279+15 cultural organization that establishes, by proof required
3280+16 by the Department by rule, that it has received an
3281+17 exemption under Section 501(c)(3) of the Internal Revenue
3282+18 Code and that is organized and operated primarily for the
3283+19 presentation or support of arts or cultural programming,
3284+20 activities, or services. These organizations include, but
3285+21 are not limited to, music and dramatic arts organizations
3286+22 such as symphony orchestras and theatrical groups, arts
3287+23 and cultural service organizations, local arts councils,
3288+24 visual arts organizations, and media arts organizations.
3289+25 On and after July 1, 2001 (the effective date of Public Act
3290+26 92-35), however, an entity otherwise eligible for this
3291+
3292+
3293+
3294+
3295+
3296+ HB3144 Enrolled - 92 - LRB103 26309 HLH 52670 b
3297+
3298+
3299+HB3144 Enrolled- 93 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 93 - LRB103 26309 HLH 52670 b
3300+ HB3144 Enrolled - 93 - LRB103 26309 HLH 52670 b
3301+1 exemption shall not make tax-free purchases unless it has
3302+2 an active identification number issued by the Department.
3303+3 (10) Personal property sold by a corporation, society,
3304+4 association, foundation, institution, or organization,
3305+5 other than a limited liability company, that is organized
3306+6 and operated as a not-for-profit service enterprise for
3307+7 the benefit of persons 65 years of age or older if the
3308+8 personal property was not purchased by the enterprise for
3309+9 the purpose of resale by the enterprise.
3310+10 (11) Except as otherwise provided in this Section,
3311+11 personal property sold to a governmental body, to a
3312+12 corporation, society, association, foundation, or
3313+13 institution organized and operated exclusively for
3314+14 charitable, religious, or educational purposes, or to a
3315+15 not-for-profit corporation, society, association,
3316+16 foundation, institution, or organization that has no
3317+17 compensated officers or employees and that is organized
3318+18 and operated primarily for the recreation of persons 55
3319+19 years of age or older. A limited liability company may
3320+20 qualify for the exemption under this paragraph only if the
3321+21 limited liability company is organized and operated
3322+22 exclusively for educational purposes. On and after July 1,
3323+23 1987, however, no entity otherwise eligible for this
3324+24 exemption shall make tax-free purchases unless it has an
3325+25 active identification number issued by the Department.
3326+26 (12) (Blank).
3327+
3328+
3329+
3330+
3331+
3332+ HB3144 Enrolled - 93 - LRB103 26309 HLH 52670 b
3333+
3334+
3335+HB3144 Enrolled- 94 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 94 - LRB103 26309 HLH 52670 b
3336+ HB3144 Enrolled - 94 - LRB103 26309 HLH 52670 b
3337+1 (12-5) On and after July 1, 2003 and through June 30,
3338+2 2004, motor vehicles of the second division with a gross
3339+3 vehicle weight in excess of 8,000 pounds that are subject
3340+4 to the commercial distribution fee imposed under Section
3341+5 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3342+6 2004 and through June 30, 2005, the use in this State of
3343+7 motor vehicles of the second division: (i) with a gross
3344+8 vehicle weight rating in excess of 8,000 pounds; (ii) that
3345+9 are subject to the commercial distribution fee imposed
3346+10 under Section 3-815.1 of the Illinois Vehicle Code; and
3347+11 (iii) that are primarily used for commercial purposes.
3348+12 Through June 30, 2005, this exemption applies to repair
3349+13 and replacement parts added after the initial purchase of
3350+14 such a motor vehicle if that motor vehicle is used in a
3351+15 manner that would qualify for the rolling stock exemption
3352+16 otherwise provided for in this Act. For purposes of this
3353+17 paragraph, "used for commercial purposes" means the
3354+18 transportation of persons or property in furtherance of
3355+19 any commercial or industrial enterprise whether for-hire
3356+20 or not.
3357+21 (13) Proceeds from sales to owners, lessors, or
3358+22 shippers of tangible personal property that is utilized by
3359+23 interstate carriers for hire for use as rolling stock
3360+24 moving in interstate commerce and equipment operated by a
3361+25 telecommunications provider, licensed as a common carrier
3362+26 by the Federal Communications Commission, which is
3363+
3364+
3365+
3366+
3367+
3368+ HB3144 Enrolled - 94 - LRB103 26309 HLH 52670 b
3369+
3370+
3371+HB3144 Enrolled- 95 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 95 - LRB103 26309 HLH 52670 b
3372+ HB3144 Enrolled - 95 - LRB103 26309 HLH 52670 b
3373+1 permanently installed in or affixed to aircraft moving in
3374+2 interstate commerce.
3375+3 (14) Machinery and equipment that will be used by the
3376+4 purchaser, or a lessee of the purchaser, primarily in the
3377+5 process of manufacturing or assembling tangible personal
3378+6 property for wholesale or retail sale or lease, whether
3379+7 the sale or lease is made directly by the manufacturer or
3380+8 by some other person, whether the materials used in the
3381+9 process are owned by the manufacturer or some other
3382+10 person, or whether the sale or lease is made apart from or
3383+11 as an incident to the seller's engaging in the service
3384+12 occupation of producing machines, tools, dies, jigs,
3385+13 patterns, gauges, or other similar items of no commercial
3386+14 value on special order for a particular purchaser. The
3387+15 exemption provided by this paragraph (14) does not include
3388+16 machinery and equipment used in (i) the generation of
3389+17 electricity for wholesale or retail sale; (ii) the
3390+18 generation or treatment of natural or artificial gas for
3391+19 wholesale or retail sale that is delivered to customers
3392+20 through pipes, pipelines, or mains; or (iii) the treatment
3393+21 of water for wholesale or retail sale that is delivered to
3394+22 customers through pipes, pipelines, or mains. The
3395+23 provisions of Public Act 98-583 are declaratory of
3396+24 existing law as to the meaning and scope of this
3397+25 exemption. Beginning on July 1, 2017, the exemption
3398+26 provided by this paragraph (14) includes, but is not
3399+
3400+
3401+
3402+
3403+
3404+ HB3144 Enrolled - 95 - LRB103 26309 HLH 52670 b
3405+
3406+
3407+HB3144 Enrolled- 96 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 96 - LRB103 26309 HLH 52670 b
3408+ HB3144 Enrolled - 96 - LRB103 26309 HLH 52670 b
3409+1 limited to, graphic arts machinery and equipment, as
3410+2 defined in paragraph (4) of this Section.
3411+3 (15) Proceeds of mandatory service charges separately
3412+4 stated on customers' bills for purchase and consumption of
3413+5 food and beverages, to the extent that the proceeds of the
3414+6 service charge are in fact turned over as tips or as a
3415+7 substitute for tips to the employees who participate
3416+8 directly in preparing, serving, hosting or cleaning up the
3417+9 food or beverage function with respect to which the
3418+10 service charge is imposed.
3419+11 (16) Tangible personal property sold to a purchaser if
3420+12 the purchaser is exempt from use tax by operation of
3421+13 federal law. This paragraph is exempt from the provisions
3422+14 of Section 2-70.
3423+15 (17) Tangible personal property sold to a common
3424+16 carrier by rail or motor that receives the physical
3425+17 possession of the property in Illinois and that transports
3426+18 the property, or shares with another common carrier in the
3427+19 transportation of the property, out of Illinois on a
3428+20 standard uniform bill of lading showing the seller of the
3429+21 property as the shipper or consignor of the property to a
3430+22 destination outside Illinois, for use outside Illinois.
3431+23 (18) Legal tender, currency, medallions, or gold or
3432+24 silver coinage issued by the State of Illinois, the
3433+25 government of the United States of America, or the
3434+26 government of any foreign country, and bullion.
3435+
3436+
3437+
3438+
3439+
3440+ HB3144 Enrolled - 96 - LRB103 26309 HLH 52670 b
3441+
3442+
3443+HB3144 Enrolled- 97 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 97 - LRB103 26309 HLH 52670 b
3444+ HB3144 Enrolled - 97 - LRB103 26309 HLH 52670 b
3445+1 (19) Until July 1, 2003, oil field exploration,
3446+2 drilling, and production equipment, including (i) rigs and
3447+3 parts of rigs, rotary rigs, cable tool rigs, and workover
3448+4 rigs, (ii) pipe and tubular goods, including casing and
3449+5 drill strings, (iii) pumps and pump-jack units, (iv)
3450+6 storage tanks and flow lines, (v) any individual
3451+7 replacement part for oil field exploration, drilling, and
3452+8 production equipment, and (vi) machinery and equipment
3453+9 purchased for lease; but excluding motor vehicles required
3454+10 to be registered under the Illinois Vehicle Code.
3455+11 (20) Photoprocessing machinery and equipment,
3456+12 including repair and replacement parts, both new and used,
3457+13 including that manufactured on special order, certified by
3458+14 the purchaser to be used primarily for photoprocessing,
3459+15 and including photoprocessing machinery and equipment
3460+16 purchased for lease.
3461+17 (21) Until July 1, 2028, coal and aggregate
3462+18 exploration, mining, off-highway hauling, processing,
3463+19 maintenance, and reclamation equipment, including
3464+20 replacement parts and equipment, and including equipment
3465+21 purchased for lease, but excluding motor vehicles required
3466+22 to be registered under the Illinois Vehicle Code. The
3467+23 changes made to this Section by Public Act 97-767 apply on
3468+24 and after July 1, 2003, but no claim for credit or refund
3469+25 is allowed on or after August 16, 2013 (the effective date
3470+26 of Public Act 98-456) for such taxes paid during the
3471+
3472+
3473+
3474+
3475+
3476+ HB3144 Enrolled - 97 - LRB103 26309 HLH 52670 b
3477+
3478+
3479+HB3144 Enrolled- 98 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 98 - LRB103 26309 HLH 52670 b
3480+ HB3144 Enrolled - 98 - LRB103 26309 HLH 52670 b
3481+1 period beginning July 1, 2003 and ending on August 16,
3482+2 2013 (the effective date of Public Act 98-456).
3483+3 (22) Until June 30, 2013, fuel and petroleum products
3484+4 sold to or used by an air carrier, certified by the carrier
3485+5 to be used for consumption, shipment, or storage in the
3486+6 conduct of its business as an air common carrier, for a
3487+7 flight destined for or returning from a location or
3488+8 locations outside the United States without regard to
3489+9 previous or subsequent domestic stopovers.
3490+10 Beginning July 1, 2013, fuel and petroleum products
3491+11 sold to or used by an air carrier, certified by the carrier
3492+12 to be used for consumption, shipment, or storage in the
3493+13 conduct of its business as an air common carrier, for a
3494+14 flight that (i) is engaged in foreign trade or is engaged
3495+15 in trade between the United States and any of its
3496+16 possessions and (ii) transports at least one individual or
3497+17 package for hire from the city of origination to the city
3498+18 of final destination on the same aircraft, without regard
3499+19 to a change in the flight number of that aircraft.
3500+20 (23) A transaction in which the purchase order is
3501+21 received by a florist who is located outside Illinois, but
3502+22 who has a florist located in Illinois deliver the property
3503+23 to the purchaser or the purchaser's donee in Illinois.
3504+24 (24) Fuel consumed or used in the operation of ships,
3505+25 barges, or vessels that are used primarily in or for the
3506+26 transportation of property or the conveyance of persons
3507+
3508+
3509+
3510+
3511+
3512+ HB3144 Enrolled - 98 - LRB103 26309 HLH 52670 b
3513+
3514+
3515+HB3144 Enrolled- 99 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 99 - LRB103 26309 HLH 52670 b
3516+ HB3144 Enrolled - 99 - LRB103 26309 HLH 52670 b
3517+1 for hire on rivers bordering on this State if the fuel is
3518+2 delivered by the seller to the purchaser's barge, ship, or
3519+3 vessel while it is afloat upon that bordering river.
3520+4 (25) Except as provided in item (25-5) of this
3521+5 Section, a motor vehicle sold in this State to a
3522+6 nonresident even though the motor vehicle is delivered to
3523+7 the nonresident in this State, if the motor vehicle is not
3524+8 to be titled in this State, and if a drive-away permit is
3525+9 issued to the motor vehicle as provided in Section 3-603
3526+10 of the Illinois Vehicle Code or if the nonresident
3527+11 purchaser has vehicle registration plates to transfer to
3528+12 the motor vehicle upon returning to his or her home state.
3529+13 The issuance of the drive-away permit or having the
3530+14 out-of-state registration plates to be transferred is
3531+15 prima facie evidence that the motor vehicle will not be
3532+16 titled in this State.
3533+17 (25-5) The exemption under item (25) does not apply if
3534+18 the state in which the motor vehicle will be titled does
3535+19 not allow a reciprocal exemption for a motor vehicle sold
3536+20 and delivered in that state to an Illinois resident but
3537+21 titled in Illinois. The tax collected under this Act on
3538+22 the sale of a motor vehicle in this State to a resident of
3539+23 another state that does not allow a reciprocal exemption
3540+24 shall be imposed at a rate equal to the state's rate of tax
3541+25 on taxable property in the state in which the purchaser is
3542+26 a resident, except that the tax shall not exceed the tax
3543+
3544+
3545+
3546+
3547+
3548+ HB3144 Enrolled - 99 - LRB103 26309 HLH 52670 b
3549+
3550+
3551+HB3144 Enrolled- 100 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 100 - LRB103 26309 HLH 52670 b
3552+ HB3144 Enrolled - 100 - LRB103 26309 HLH 52670 b
3553+1 that would otherwise be imposed under this Act. At the
3554+2 time of the sale, the purchaser shall execute a statement,
3555+3 signed under penalty of perjury, of his or her intent to
3556+4 title the vehicle in the state in which the purchaser is a
3557+5 resident within 30 days after the sale and of the fact of
3558+6 the payment to the State of Illinois of tax in an amount
3559+7 equivalent to the state's rate of tax on taxable property
3560+8 in his or her state of residence and shall submit the
3561+9 statement to the appropriate tax collection agency in his
3562+10 or her state of residence. In addition, the retailer must
3563+11 retain a signed copy of the statement in his or her
3564+12 records. Nothing in this item shall be construed to
3565+13 require the removal of the vehicle from this state
3566+14 following the filing of an intent to title the vehicle in
3567+15 the purchaser's state of residence if the purchaser titles
3568+16 the vehicle in his or her state of residence within 30 days
3569+17 after the date of sale. The tax collected under this Act in
3570+18 accordance with this item (25-5) shall be proportionately
3571+19 distributed as if the tax were collected at the 6.25%
3572+20 general rate imposed under this Act.
3573+21 (25-7) Beginning on July 1, 2007, no tax is imposed
3574+22 under this Act on the sale of an aircraft, as defined in
3575+23 Section 3 of the Illinois Aeronautics Act, if all of the
3576+24 following conditions are met:
3577+25 (1) the aircraft leaves this State within 15 days
3578+26 after the later of either the issuance of the final
3579+
3580+
3581+
3582+
3583+
3584+ HB3144 Enrolled - 100 - LRB103 26309 HLH 52670 b
3585+
3586+
3587+HB3144 Enrolled- 101 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 101 - LRB103 26309 HLH 52670 b
3588+ HB3144 Enrolled - 101 - LRB103 26309 HLH 52670 b
3589+1 billing for the sale of the aircraft, or the
3590+2 authorized approval for return to service, completion
3591+3 of the maintenance record entry, and completion of the
3592+4 test flight and ground test for inspection, as
3593+5 required by 14 CFR 91.407;
3594+6 (2) the aircraft is not based or registered in
3595+7 this State after the sale of the aircraft; and
3596+8 (3) the seller retains in his or her books and
3597+9 records and provides to the Department a signed and
3598+10 dated certification from the purchaser, on a form
3599+11 prescribed by the Department, certifying that the
3600+12 requirements of this item (25-7) are met. The
3601+13 certificate must also include the name and address of
3602+14 the purchaser, the address of the location where the
3603+15 aircraft is to be titled or registered, the address of
3604+16 the primary physical location of the aircraft, and
3605+17 other information that the Department may reasonably
3606+18 require.
3607+19 For purposes of this item (25-7):
3608+20 "Based in this State" means hangared, stored, or
3609+21 otherwise used, excluding post-sale customizations as
3610+22 defined in this Section, for 10 or more days in each
3611+23 12-month period immediately following the date of the sale
3612+24 of the aircraft.
3613+25 "Registered in this State" means an aircraft
3614+26 registered with the Department of Transportation,
3615+
3616+
3617+
3618+
3619+
3620+ HB3144 Enrolled - 101 - LRB103 26309 HLH 52670 b
3621+
3622+
3623+HB3144 Enrolled- 102 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 102 - LRB103 26309 HLH 52670 b
3624+ HB3144 Enrolled - 102 - LRB103 26309 HLH 52670 b
3625+1 Aeronautics Division, or titled or registered with the
3626+2 Federal Aviation Administration to an address located in
3627+3 this State.
3628+4 This paragraph (25-7) is exempt from the provisions of
3629+5 Section 2-70.
3630+6 (26) Semen used for artificial insemination of
3631+7 livestock for direct agricultural production.
3632+8 (27) Horses, or interests in horses, registered with
3633+9 and meeting the requirements of any of the Arabian Horse
3634+10 Club Registry of America, Appaloosa Horse Club, American
3635+11 Quarter Horse Association, United States Trotting
3636+12 Association, or Jockey Club, as appropriate, used for
3637+13 purposes of breeding or racing for prizes. This item (27)
3638+14 is exempt from the provisions of Section 2-70, and the
3639+15 exemption provided for under this item (27) applies for
3640+16 all periods beginning May 30, 1995, but no claim for
3641+17 credit or refund is allowed on or after January 1, 2008
3642+18 (the effective date of Public Act 95-88) for such taxes
3643+19 paid during the period beginning May 30, 2000 and ending
3644+20 on January 1, 2008 (the effective date of Public Act
3645+21 95-88).
3646+22 (28) Computers and communications equipment utilized
3647+23 for any hospital purpose and equipment used in the
3648+24 diagnosis, analysis, or treatment of hospital patients
3649+25 sold to a lessor who leases the equipment, under a lease of
3650+26 one year or longer executed or in effect at the time of the
3651+
3652+
3653+
3654+
3655+
3656+ HB3144 Enrolled - 102 - LRB103 26309 HLH 52670 b
3657+
3658+
3659+HB3144 Enrolled- 103 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 103 - LRB103 26309 HLH 52670 b
3660+ HB3144 Enrolled - 103 - LRB103 26309 HLH 52670 b
3661+1 purchase, to a hospital that has been issued an active tax
3662+2 exemption identification number by the Department under
3663+3 Section 1g of this Act.
3664+4 (29) Personal property sold to a lessor who leases the
3665+5 property, under a lease of one year or longer executed or
3666+6 in effect at the time of the purchase, to a governmental
3667+7 body that has been issued an active tax exemption
3668+8 identification number by the Department under Section 1g
3669+9 of this Act.
3670+10 (30) Beginning with taxable years ending on or after
3671+11 December 31, 1995 and ending with taxable years ending on
3672+12 or before December 31, 2004, personal property that is
3673+13 donated for disaster relief to be used in a State or
3674+14 federally declared disaster area in Illinois or bordering
3675+15 Illinois by a manufacturer or retailer that is registered
3676+16 in this State to a corporation, society, association,
3677+17 foundation, or institution that has been issued a sales
3678+18 tax exemption identification number by the Department that
3679+19 assists victims of the disaster who reside within the
3680+20 declared disaster area.
3681+21 (31) Beginning with taxable years ending on or after
3682+22 December 31, 1995 and ending with taxable years ending on
3683+23 or before December 31, 2004, personal property that is
3684+24 used in the performance of infrastructure repairs in this
3685+25 State, including, but not limited to, municipal roads and
3686+26 streets, access roads, bridges, sidewalks, waste disposal
3687+
3688+
3689+
3690+
3691+
3692+ HB3144 Enrolled - 103 - LRB103 26309 HLH 52670 b
3693+
3694+
3695+HB3144 Enrolled- 104 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 104 - LRB103 26309 HLH 52670 b
3696+ HB3144 Enrolled - 104 - LRB103 26309 HLH 52670 b
3697+1 systems, water and sewer line extensions, water
3698+2 distribution and purification facilities, storm water
3699+3 drainage and retention facilities, and sewage treatment
3700+4 facilities, resulting from a State or federally declared
3701+5 disaster in Illinois or bordering Illinois when such
3702+6 repairs are initiated on facilities located in the
3703+7 declared disaster area within 6 months after the disaster.
3704+8 (32) Beginning July 1, 1999, game or game birds sold
3705+9 at a "game breeding and hunting preserve area" as that
3706+10 term is used in the Wildlife Code. This paragraph is
3707+11 exempt from the provisions of Section 2-70.
3708+12 (33) A motor vehicle, as that term is defined in
3709+13 Section 1-146 of the Illinois Vehicle Code, that is
3710+14 donated to a corporation, limited liability company,
3711+15 society, association, foundation, or institution that is
3712+16 determined by the Department to be organized and operated
3713+17 exclusively for educational purposes. For purposes of this
3714+18 exemption, "a corporation, limited liability company,
3715+19 society, association, foundation, or institution organized
3716+20 and operated exclusively for educational purposes" means
3717+21 all tax-supported public schools, private schools that
3718+22 offer systematic instruction in useful branches of
3719+23 learning by methods common to public schools and that
3720+24 compare favorably in their scope and intensity with the
3721+25 course of study presented in tax-supported schools, and
3722+26 vocational or technical schools or institutes organized
3723+
3724+
3725+
3726+
3727+
3728+ HB3144 Enrolled - 104 - LRB103 26309 HLH 52670 b
3729+
3730+
3731+HB3144 Enrolled- 105 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 105 - LRB103 26309 HLH 52670 b
3732+ HB3144 Enrolled - 105 - LRB103 26309 HLH 52670 b
3733+1 and operated exclusively to provide a course of study of
3734+2 not less than 6 weeks duration and designed to prepare
3735+3 individuals to follow a trade or to pursue a manual,
3736+4 technical, mechanical, industrial, business, or commercial
3737+5 occupation.
3738+6 (34) Beginning January 1, 2000, personal property,
3739+7 including food, purchased through fundraising events for
3740+8 the benefit of a public or private elementary or secondary
3741+9 school, a group of those schools, or one or more school
3742+10 districts if the events are sponsored by an entity
3743+11 recognized by the school district that consists primarily
3744+12 of volunteers and includes parents and teachers of the
3745+13 school children. This paragraph does not apply to
3746+14 fundraising events (i) for the benefit of private home
3747+15 instruction or (ii) for which the fundraising entity
3748+16 purchases the personal property sold at the events from
3749+17 another individual or entity that sold the property for
3750+18 the purpose of resale by the fundraising entity and that
3751+19 profits from the sale to the fundraising entity. This
3752+20 paragraph is exempt from the provisions of Section 2-70.
3753+21 (35) Beginning January 1, 2000 and through December
3754+22 31, 2001, new or used automatic vending machines that
3755+23 prepare and serve hot food and beverages, including
3756+24 coffee, soup, and other items, and replacement parts for
3757+25 these machines. Beginning January 1, 2002 and through June
3758+26 30, 2003, machines and parts for machines used in
3759+
3760+
3761+
3762+
3763+
3764+ HB3144 Enrolled - 105 - LRB103 26309 HLH 52670 b
3765+
3766+
3767+HB3144 Enrolled- 106 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 106 - LRB103 26309 HLH 52670 b
3768+ HB3144 Enrolled - 106 - LRB103 26309 HLH 52670 b
3769+1 commercial, coin-operated amusement and vending business
3770+2 if a use or occupation tax is paid on the gross receipts
3771+3 derived from the use of the commercial, coin-operated
3772+4 amusement and vending machines. This paragraph is exempt
3773+5 from the provisions of Section 2-70.
3774+6 (35-5) Beginning August 23, 2001 and through June 30,
3775+7 2016, food for human consumption that is to be consumed
3776+8 off the premises where it is sold (other than alcoholic
3777+9 beverages, soft drinks, and food that has been prepared
3778+10 for immediate consumption) and prescription and
3779+11 nonprescription medicines, drugs, medical appliances, and
3780+12 insulin, urine testing materials, syringes, and needles
3781+13 used by diabetics, for human use, when purchased for use
3782+14 by a person receiving medical assistance under Article V
3783+15 of the Illinois Public Aid Code who resides in a licensed
3784+16 long-term care facility, as defined in the Nursing Home
3785+17 Care Act, or a licensed facility as defined in the ID/DD
3786+18 Community Care Act, the MC/DD Act, or the Specialized
3787+19 Mental Health Rehabilitation Act of 2013.
3788+20 (36) Beginning August 2, 2001, computers and
3789+21 communications equipment utilized for any hospital purpose
3790+22 and equipment used in the diagnosis, analysis, or
3791+23 treatment of hospital patients sold to a lessor who leases
3792+24 the equipment, under a lease of one year or longer
3793+25 executed or in effect at the time of the purchase, to a
3794+26 hospital that has been issued an active tax exemption
3795+
3796+
3797+
3798+
3799+
3800+ HB3144 Enrolled - 106 - LRB103 26309 HLH 52670 b
3801+
3802+
3803+HB3144 Enrolled- 107 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 107 - LRB103 26309 HLH 52670 b
3804+ HB3144 Enrolled - 107 - LRB103 26309 HLH 52670 b
3805+1 identification number by the Department under Section 1g
3806+2 of this Act. This paragraph is exempt from the provisions
3807+3 of Section 2-70.
3808+4 (37) Beginning August 2, 2001, personal property sold
3809+5 to a lessor who leases the property, under a lease of one
3810+6 year or longer executed or in effect at the time of the
3811+7 purchase, to a governmental body that has been issued an
3812+8 active tax exemption identification number by the
3813+9 Department under Section 1g of this Act. This paragraph is
3814+10 exempt from the provisions of Section 2-70.
3815+11 (38) Beginning on January 1, 2002 and through June 30,
3816+12 2016, tangible personal property purchased from an
3817+13 Illinois retailer by a taxpayer engaged in centralized
3818+14 purchasing activities in Illinois who will, upon receipt
3819+15 of the property in Illinois, temporarily store the
3820+16 property in Illinois (i) for the purpose of subsequently
3821+17 transporting it outside this State for use or consumption
3822+18 thereafter solely outside this State or (ii) for the
3823+19 purpose of being processed, fabricated, or manufactured
3824+20 into, attached to, or incorporated into other tangible
3825+21 personal property to be transported outside this State and
3826+22 thereafter used or consumed solely outside this State. The
3827+23 Director of Revenue shall, pursuant to rules adopted in
3828+24 accordance with the Illinois Administrative Procedure Act,
3829+25 issue a permit to any taxpayer in good standing with the
3830+26 Department who is eligible for the exemption under this
3831+
3832+
3833+
3834+
3835+
3836+ HB3144 Enrolled - 107 - LRB103 26309 HLH 52670 b
3837+
3838+
3839+HB3144 Enrolled- 108 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 108 - LRB103 26309 HLH 52670 b
3840+ HB3144 Enrolled - 108 - LRB103 26309 HLH 52670 b
3841+1 paragraph (38). The permit issued under this paragraph
3842+2 (38) shall authorize the holder, to the extent and in the
3843+3 manner specified in the rules adopted under this Act, to
3844+4 purchase tangible personal property from a retailer exempt
3845+5 from the taxes imposed by this Act. Taxpayers shall
3846+6 maintain all necessary books and records to substantiate
3847+7 the use and consumption of all such tangible personal
3848+8 property outside of the State of Illinois.
3849+9 (39) Beginning January 1, 2008, tangible personal
3850+10 property used in the construction or maintenance of a
3851+11 community water supply, as defined under Section 3.145 of
3852+12 the Environmental Protection Act, that is operated by a
3853+13 not-for-profit corporation that holds a valid water supply
3854+14 permit issued under Title IV of the Environmental
3855+15 Protection Act. This paragraph is exempt from the
3856+16 provisions of Section 2-70.
3857+17 (40) Beginning January 1, 2010 and continuing through
3858+18 December 31, 2029, materials, parts, equipment,
3859+19 components, and furnishings incorporated into or upon an
3860+20 aircraft as part of the modification, refurbishment,
3861+21 completion, replacement, repair, or maintenance of the
3862+22 aircraft. This exemption includes consumable supplies used
3863+23 in the modification, refurbishment, completion,
3864+24 replacement, repair, and maintenance of aircraft. However,
3865+25 until January 1, 2024, this exemption excludes any
3866+26 materials, parts, equipment, components, and consumable
3867+
3868+
3869+
3870+
3871+
3872+ HB3144 Enrolled - 108 - LRB103 26309 HLH 52670 b
3873+
3874+
3875+HB3144 Enrolled- 109 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 109 - LRB103 26309 HLH 52670 b
3876+ HB3144 Enrolled - 109 - LRB103 26309 HLH 52670 b
3877+1 supplies used in the modification, replacement, repair,
3878+2 and maintenance of aircraft engines or power plants,
3879+3 whether such engines or power plants are installed or
3880+4 uninstalled upon any such aircraft. "Consumable supplies"
3881+5 include, but are not limited to, adhesive, tape,
3882+6 sandpaper, general purpose lubricants, cleaning solution,
3883+7 latex gloves, and protective films.
3884+8 Beginning January 1, 2010 and continuing through
3885+9 December 31, 2023, this exemption applies only to the sale
3886+10 of qualifying tangible personal property to persons who
3887+11 modify, refurbish, complete, replace, or maintain an
3888+12 aircraft and who (i) hold an Air Agency Certificate and
3889+13 are empowered to operate an approved repair station by the
3890+14 Federal Aviation Administration, (ii) have a Class IV
3891+15 Rating, and (iii) conduct operations in accordance with
3892+16 Part 145 of the Federal Aviation Regulations. The
3893+17 exemption does not include aircraft operated by a
3894+18 commercial air carrier providing scheduled passenger air
3895+19 service pursuant to authority issued under Part 121 or
3896+20 Part 129 of the Federal Aviation Regulations. From January
3897+21 1, 2024 through December 31, 2029, this exemption applies
3898+22 only to the use of qualifying tangible personal property
3899+23 by: (A) persons who modify, refurbish, complete, repair,
3900+24 replace, or maintain aircraft and who (i) hold an Air
3901+25 Agency Certificate and are empowered to operate an
3902+26 approved repair station by the Federal Aviation
3903+
3904+
3905+
3906+
3907+
3908+ HB3144 Enrolled - 109 - LRB103 26309 HLH 52670 b
3909+
3910+
3911+HB3144 Enrolled- 110 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 110 - LRB103 26309 HLH 52670 b
3912+ HB3144 Enrolled - 110 - LRB103 26309 HLH 52670 b
3913+1 Administration, (ii) have a Class IV Rating, and (iii)
3914+2 conduct operations in accordance with Part 145 of the
3915+3 Federal Aviation Regulations; and (B) persons who engage
3916+4 in the modification, replacement, repair, and maintenance
3917+5 of aircraft engines or power plants without regard to
3918+6 whether or not those persons meet the qualifications of
3919+7 item (A).
3920+8 The changes made to this paragraph (40) by Public Act
3921+9 98-534 are declarative of existing law. It is the intent
3922+10 of the General Assembly that the exemption under this
3923+11 paragraph (40) applies continuously from January 1, 2010
3924+12 through December 31, 2024; however, no claim for credit or
3925+13 refund is allowed for taxes paid as a result of the
3926+14 disallowance of this exemption on or after January 1, 2015
3927+15 and prior to February 5, 2020 (the effective date of
3928+16 Public Act 101-629).
3929+17 (41) Tangible personal property sold to a
3930+18 public-facilities corporation, as described in Section
3931+19 11-65-10 of the Illinois Municipal Code, for purposes of
3932+20 constructing or furnishing a municipal convention hall,
3933+21 but only if the legal title to the municipal convention
3934+22 hall is transferred to the municipality without any
3935+23 further consideration by or on behalf of the municipality
3936+24 at the time of the completion of the municipal convention
3937+25 hall or upon the retirement or redemption of any bonds or
3938+26 other debt instruments issued by the public-facilities
3939+
3940+
3941+
3942+
3943+
3944+ HB3144 Enrolled - 110 - LRB103 26309 HLH 52670 b
3945+
3946+
3947+HB3144 Enrolled- 111 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 111 - LRB103 26309 HLH 52670 b
3948+ HB3144 Enrolled - 111 - LRB103 26309 HLH 52670 b
3949+1 corporation in connection with the development of the
3950+2 municipal convention hall. This exemption includes
3951+3 existing public-facilities corporations as provided in
3952+4 Section 11-65-25 of the Illinois Municipal Code. This
3953+5 paragraph is exempt from the provisions of Section 2-70.
3954+6 (42) Beginning January 1, 2017 and through December
3955+7 31, 2026, menstrual pads, tampons, and menstrual cups.
3956+8 (43) Merchandise that is subject to the Rental
3957+9 Purchase Agreement Occupation and Use Tax. The purchaser
3958+10 must certify that the item is purchased to be rented
3959+11 subject to a rental-purchase rental purchase agreement, as
3960+12 defined in the Rental-Purchase Rental Purchase Agreement
3961+13 Act, and provide proof of registration under the Rental
3962+14 Purchase Agreement Occupation and Use Tax Act. This
3963+15 paragraph is exempt from the provisions of Section 2-70.
3964+16 (44) Qualified tangible personal property used in the
3965+17 construction or operation of a data center that has been
3966+18 granted a certificate of exemption by the Department of
3967+19 Commerce and Economic Opportunity, whether that tangible
3968+20 personal property is purchased by the owner, operator, or
3969+21 tenant of the data center or by a contractor or
3970+22 subcontractor of the owner, operator, or tenant. Data
3971+23 centers that would have qualified for a certificate of
3972+24 exemption prior to January 1, 2020 had Public Act 101-31
3973+25 been in effect, may apply for and obtain an exemption for
3974+26 subsequent purchases of computer equipment or enabling
3975+
3976+
3977+
3978+
3979+
3980+ HB3144 Enrolled - 111 - LRB103 26309 HLH 52670 b
3981+
3982+
3983+HB3144 Enrolled- 112 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 112 - LRB103 26309 HLH 52670 b
3984+ HB3144 Enrolled - 112 - LRB103 26309 HLH 52670 b
3985+1 software purchased or leased to upgrade, supplement, or
3986+2 replace computer equipment or enabling software purchased
3987+3 or leased in the original investment that would have
3988+4 qualified.
3989+5 The Department of Commerce and Economic Opportunity
3990+6 shall grant a certificate of exemption under this item
3991+7 (44) to qualified data centers as defined by Section
3992+8 605-1025 of the Department of Commerce and Economic
3993+9 Opportunity Law of the Civil Administrative Code of
3994+10 Illinois.
3995+11 For the purposes of this item (44):
3996+12 "Data center" means a building or a series of
3997+13 buildings rehabilitated or constructed to house
3998+14 working servers in one physical location or multiple
3999+15 sites within the State of Illinois.
4000+16 "Qualified tangible personal property" means:
4001+17 electrical systems and equipment; climate control and
4002+18 chilling equipment and systems; mechanical systems and
4003+19 equipment; monitoring and secure systems; emergency
4004+20 generators; hardware; computers; servers; data storage
4005+21 devices; network connectivity equipment; racks;
4006+22 cabinets; telecommunications cabling infrastructure;
4007+23 raised floor systems; peripheral components or
4008+24 systems; software; mechanical, electrical, or plumbing
4009+25 systems; battery systems; cooling systems and towers;
4010+26 temperature control systems; other cabling; and other
4011+
4012+
4013+
4014+
4015+
4016+ HB3144 Enrolled - 112 - LRB103 26309 HLH 52670 b
4017+
4018+
4019+HB3144 Enrolled- 113 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 113 - LRB103 26309 HLH 52670 b
4020+ HB3144 Enrolled - 113 - LRB103 26309 HLH 52670 b
4021+1 data center infrastructure equipment and systems
4022+2 necessary to operate qualified tangible personal
4023+3 property, including fixtures; and component parts of
4024+4 any of the foregoing, including installation,
4025+5 maintenance, repair, refurbishment, and replacement of
4026+6 qualified tangible personal property to generate,
4027+7 transform, transmit, distribute, or manage electricity
4028+8 necessary to operate qualified tangible personal
4029+9 property; and all other tangible personal property
4030+10 that is essential to the operations of a computer data
4031+11 center. The term "qualified tangible personal
4032+12 property" also includes building materials physically
4033+13 incorporated into the qualifying data center. To
4034+14 document the exemption allowed under this Section, the
4035+15 retailer must obtain from the purchaser a copy of the
4036+16 certificate of eligibility issued by the Department of
4037+17 Commerce and Economic Opportunity.
4038+18 This item (44) is exempt from the provisions of
4039+19 Section 2-70.
4040+20 (45) Beginning January 1, 2020 and through December
4041+21 31, 2020, sales of tangible personal property made by a
4042+22 marketplace seller over a marketplace for which tax is due
4043+23 under this Act but for which use tax has been collected and
4044+24 remitted to the Department by a marketplace facilitator
4045+25 under Section 2d of the Use Tax Act are exempt from tax
4046+26 under this Act. A marketplace seller claiming this
4047+
4048+
4049+
4050+
4051+
4052+ HB3144 Enrolled - 113 - LRB103 26309 HLH 52670 b
4053+
4054+
4055+HB3144 Enrolled- 114 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 114 - LRB103 26309 HLH 52670 b
4056+ HB3144 Enrolled - 114 - LRB103 26309 HLH 52670 b
4057+1 exemption shall maintain books and records demonstrating
4058+2 that the use tax on such sales has been collected and
4059+3 remitted by a marketplace facilitator. Marketplace sellers
4060+4 that have properly remitted tax under this Act on such
4061+5 sales may file a claim for credit as provided in Section 6
4062+6 of this Act. No claim is allowed, however, for such taxes
4063+7 for which a credit or refund has been issued to the
4064+8 marketplace facilitator under the Use Tax Act, or for
4065+9 which the marketplace facilitator has filed a claim for
4066+10 credit or refund under the Use Tax Act.
4067+11 (46) Beginning July 1, 2022, breast pumps, breast pump
4068+12 collection and storage supplies, and breast pump kits.
4069+13 This item (46) is exempt from the provisions of Section
4070+14 2-70. As used in this item (46):
4071+15 "Breast pump" means an electrically controlled or
4072+16 manually controlled pump device designed or marketed to be
4073+17 used to express milk from a human breast during lactation,
4074+18 including the pump device and any battery, AC adapter, or
4075+19 other power supply unit that is used to power the pump
4076+20 device and is packaged and sold with the pump device at the
4077+21 time of sale.
4078+22 "Breast pump collection and storage supplies" means
4079+23 items of tangible personal property designed or marketed
4080+24 to be used in conjunction with a breast pump to collect
4081+25 milk expressed from a human breast and to store collected
4082+26 milk until it is ready for consumption.
4083+
4084+
4085+
4086+
4087+
4088+ HB3144 Enrolled - 114 - LRB103 26309 HLH 52670 b
4089+
4090+
4091+HB3144 Enrolled- 115 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 115 - LRB103 26309 HLH 52670 b
4092+ HB3144 Enrolled - 115 - LRB103 26309 HLH 52670 b
4093+1 "Breast pump collection and storage supplies"
4094+2 includes, but is not limited to: breast shields and breast
4095+3 shield connectors; breast pump tubes and tubing adapters;
4096+4 breast pump valves and membranes; backflow protectors and
4097+5 backflow protector adaptors; bottles and bottle caps
4098+6 specific to the operation of the breast pump; and breast
4099+7 milk storage bags.
4100+8 "Breast pump collection and storage supplies" does not
4101+9 include: (1) bottles and bottle caps not specific to the
4102+10 operation of the breast pump; (2) breast pump travel bags
4103+11 and other similar carrying accessories, including ice
4104+12 packs, labels, and other similar products; (3) breast pump
4105+13 cleaning supplies; (4) nursing bras, bra pads, breast
4106+14 shells, and other similar products; and (5) creams,
4107+15 ointments, and other similar products that relieve
4108+16 breastfeeding-related symptoms or conditions of the
4109+17 breasts or nipples, unless sold as part of a breast pump
4110+18 kit that is pre-packaged by the breast pump manufacturer
4111+19 or distributor.
4112+20 "Breast pump kit" means a kit that: (1) contains no
4113+21 more than a breast pump, breast pump collection and
4114+22 storage supplies, a rechargeable battery for operating the
4115+23 breast pump, a breastmilk cooler, bottle stands, ice
4116+24 packs, and a breast pump carrying case; and (2) is
4117+25 pre-packaged as a breast pump kit by the breast pump
4118+26 manufacturer or distributor.
4119+
4120+
4121+
4122+
4123+
4124+ HB3144 Enrolled - 115 - LRB103 26309 HLH 52670 b
4125+
4126+
4127+HB3144 Enrolled- 116 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 116 - LRB103 26309 HLH 52670 b
4128+ HB3144 Enrolled - 116 - LRB103 26309 HLH 52670 b
4129+1 (47) Tangible personal property sold by or on behalf
4130+2 of the State Treasurer pursuant to the Revised Uniform
4131+3 Unclaimed Property Act. This item (47) is exempt from the
4132+4 provisions of Section 2-70.
4133+5 (48) Beginning on January 1, 2024, tangible personal
4134+6 property purchased by an active duty member of the armed
4135+7 forces of the United States who presents valid military
4136+8 identification and purchases the property using a form of
4137+9 payment where the federal government is the payor. The
4138+10 member of the armed forces must complete, at the point of
4139+11 sale, a form prescribed by the Department of Revenue
4140+12 documenting that the transaction is eligible for the
4141+13 exemption under this paragraph. Retailers must keep the
4142+14 form as documentation of the exemption in their records
4143+15 for a period of not less than 6 years. "Armed forces of the
4144+16 United States" means the United States Army, Navy, Air
4145+17 Force, Marine Corps, or Coast Guard. This paragraph is
4146+18 exempt from the provisions of Section 2-70.
4147+19 (49) Beginning on January 1, 2026, as further defined
4148+20 in Section 2-10, food for human consumption that is to be
4149+21 consumed off the premises where it is sold (other than
4150+22 alcoholic beverages, food consisting of or infused with
4151+23 adult use cannabis, soft drinks, candy, and food that has
4152+24 been prepared for immediate consumption). This item (49)
4153+25 is exempt from the provisions of Section 2-70.
4154+26 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
4155+
4156+
4157+
4158+
4159+
4160+ HB3144 Enrolled - 116 - LRB103 26309 HLH 52670 b
4161+
4162+
4163+HB3144 Enrolled- 117 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 117 - LRB103 26309 HLH 52670 b
4164+ HB3144 Enrolled - 117 - LRB103 26309 HLH 52670 b
4165+1 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
4166+2 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
4167+3 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
4168+4 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
4169+5 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
4170+6 12-12-23.)
4171+7 (35 ILCS 120/2-10)
4172+8 Sec. 2-10. Rate of tax. Unless otherwise provided in this
4173+9 Section, the tax imposed by this Act is at the rate of 6.25% of
4174+10 gross receipts from sales of tangible personal property made
4175+11 in the course of business.
4176+12 Beginning on July 1, 2000 and through December 31, 2000,
4177+13 with respect to motor fuel, as defined in Section 1.1 of the
4178+14 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4179+15 the Use Tax Act, the tax is imposed at the rate of 1.25%.
4180+16 Beginning on August 6, 2010 through August 15, 2010, and
4181+17 beginning again on August 5, 2022 through August 14, 2022,
4182+18 with respect to sales tax holiday items as defined in Section
4183+19 2-8 of this Act, the tax is imposed at the rate of 1.25%.
4184+20 Within 14 days after July 1, 2000 (the effective date of
4185+21 Public Act 91-872), each retailer of motor fuel and gasohol
4186+22 shall cause the following notice to be posted in a prominently
4187+23 visible place on each retail dispensing device that is used to
4188+24 dispense motor fuel or gasohol in the State of Illinois: "As of
4189+25 July 1, 2000, the State of Illinois has eliminated the State's
4190+
4191+
4192+
4193+
4194+
4195+ HB3144 Enrolled - 117 - LRB103 26309 HLH 52670 b
4196+
4197+
4198+HB3144 Enrolled- 118 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 118 - LRB103 26309 HLH 52670 b
4199+ HB3144 Enrolled - 118 - LRB103 26309 HLH 52670 b
4200+1 share of sales tax on motor fuel and gasohol through December
4201+2 31, 2000. The price on this pump should reflect the
4202+3 elimination of the tax." The notice shall be printed in bold
4203+4 print on a sign that is no smaller than 4 inches by 8 inches.
4204+5 The sign shall be clearly visible to customers. Any retailer
4205+6 who fails to post or maintain a required sign through December
4206+7 31, 2000 is guilty of a petty offense for which the fine shall
4207+8 be $500 per day per each retail premises where a violation
4208+9 occurs.
4209+10 With respect to gasohol, as defined in the Use Tax Act, the
4210+11 tax imposed by this Act applies to (i) 70% of the proceeds of
4211+12 sales made on or after January 1, 1990, and before July 1,
4212+13 2003, (ii) 80% of the proceeds of sales made on or after July
4213+14 1, 2003 and on or before July 1, 2017, (iii) 100% of the
4214+15 proceeds of sales made after July 1, 2017 and prior to January
4215+16 1, 2024, (iv) 90% of the proceeds of sales made on or after
4216+17 January 1, 2024 and on or before December 31, 2028, and (v)
4217+18 100% of the proceeds of sales made after December 31, 2028. If,
4218+19 at any time, however, the tax under this Act on sales of
4219+20 gasohol, as defined in the Use Tax Act, is imposed at the rate
4220+21 of 1.25%, then the tax imposed by this Act applies to 100% of
4221+22 the proceeds of sales of gasohol made during that time.
4222+23 With respect to mid-range ethanol blends, as defined in
4223+24 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4224+25 applies to (i) 80% of the proceeds of sales made on or after
4225+26 January 1, 2024 and on or before December 31, 2028 and (ii)
4226+
4227+
4228+
4229+
4230+
4231+ HB3144 Enrolled - 118 - LRB103 26309 HLH 52670 b
4232+
4233+
4234+HB3144 Enrolled- 119 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 119 - LRB103 26309 HLH 52670 b
4235+ HB3144 Enrolled - 119 - LRB103 26309 HLH 52670 b
4236+1 100% of the proceeds of sales made after December 31, 2028. If,
4237+2 at any time, however, the tax under this Act on sales of
4238+3 mid-range ethanol blends is imposed at the rate of 1.25%, then
4239+4 the tax imposed by this Act applies to 100% of the proceeds of
4240+5 sales of mid-range ethanol blends made during that time.
4241+6 With respect to majority blended ethanol fuel, as defined
4242+7 in the Use Tax Act, the tax imposed by this Act does not apply
4243+8 to the proceeds of sales made on or after July 1, 2003 and on
4244+9 or before December 31, 2028 but applies to 100% of the proceeds
4245+10 of sales made thereafter.
4246+11 With respect to biodiesel blends, as defined in the Use
4247+12 Tax Act, with no less than 1% and no more than 10% biodiesel,
4248+13 the tax imposed by this Act applies to (i) 80% of the proceeds
4249+14 of sales made on or after July 1, 2003 and on or before
4250+15 December 31, 2018 and (ii) 100% of the proceeds of sales made
4251+16 after December 31, 2018 and before January 1, 2024. On and
4252+17 after January 1, 2024 and on or before December 31, 2030, the
4253+18 taxation of biodiesel, renewable diesel, and biodiesel blends
4254+19 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4255+20 at any time, however, the tax under this Act on sales of
4256+21 biodiesel blends, as defined in the Use Tax Act, with no less
4257+22 than 1% and no more than 10% biodiesel is imposed at the rate
4258+23 of 1.25%, then the tax imposed by this Act applies to 100% of
4259+24 the proceeds of sales of biodiesel blends with no less than 1%
4260+25 and no more than 10% biodiesel made during that time.
4261+26 With respect to biodiesel, as defined in the Use Tax Act,
4262+
4263+
4264+
4265+
4266+
4267+ HB3144 Enrolled - 119 - LRB103 26309 HLH 52670 b
4268+
4269+
4270+HB3144 Enrolled- 120 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 120 - LRB103 26309 HLH 52670 b
4271+ HB3144 Enrolled - 120 - LRB103 26309 HLH 52670 b
4272+1 and biodiesel blends, as defined in the Use Tax Act, with more
4273+2 than 10% but no more than 99% biodiesel, the tax imposed by
4274+3 this Act does not apply to the proceeds of sales made on or
4275+4 after July 1, 2003 and on or before December 31, 2023. On and
4276+5 after January 1, 2024 and on or before December 31, 2030, the
4277+6 taxation of biodiesel, renewable diesel, and biodiesel blends
4278+7 shall be as provided in Section 3-5.1 of the Use Tax Act.
4279+8 Until July 1, 2022 and from beginning again on July 1, 2023
4280+9 through December 31, 2025, with respect to food for human
4281+10 consumption that is to be consumed off the premises where it is
4282+11 sold (other than alcoholic beverages, food consisting of or
4283+12 infused with adult use cannabis, soft drinks, and food that
4284+13 has been prepared for immediate consumption), the tax is
4285+14 imposed at the rate of 1%. Beginning July 1, 2022 and until
4286+15 July 1, 2023, with respect to food for human consumption that
4287+16 is to be consumed off the premises where it is sold (other than
4288+17 alcoholic beverages, food consisting of or infused with adult
4289+18 use cannabis, soft drinks, and food that has been prepared for
4290+19 immediate consumption), the tax is imposed at the rate of 0%.
4291+20 On and after January 1, 2026, food for human consumption that
4292+21 is to be consumed off the premises where it is sold (other than
4293+22 alcoholic beverages, food consisting of or infused with adult
4294+23 use cannabis, soft drinks, candy, and food that has been
4295+24 prepared for immediate consumption) is exempt from the tax
4296+25 imposed by this Act.
4297+26 With respect to prescription and nonprescription
4298+
4299+
4300+
4301+
4302+
4303+ HB3144 Enrolled - 120 - LRB103 26309 HLH 52670 b
4304+
4305+
4306+HB3144 Enrolled- 121 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 121 - LRB103 26309 HLH 52670 b
4307+ HB3144 Enrolled - 121 - LRB103 26309 HLH 52670 b
4308+1 medicines, drugs, medical appliances, products classified as
4309+2 Class III medical devices by the United States Food and Drug
4310+3 Administration that are used for cancer treatment pursuant to
4311+4 a prescription, as well as any accessories and components
4312+5 related to those devices, modifications to a motor vehicle for
4313+6 the purpose of rendering it usable by a person with a
4314+7 disability, and insulin, blood sugar testing materials,
4315+8 syringes, and needles used by human diabetics, the tax is
4316+9 imposed at the rate of 1%. For the purposes of this Section,
4317+10 until September 1, 2009: the term "soft drinks" means any
4318+11 complete, finished, ready-to-use, non-alcoholic drink, whether
4319+12 carbonated or not, including, but not limited to, soda water,
4320+13 cola, fruit juice, vegetable juice, carbonated water, and all
4321+14 other preparations commonly known as soft drinks of whatever
4322+15 kind or description that are contained in any closed or sealed
4323+16 bottle, can, carton, or container, regardless of size; but
4324+17 "soft drinks" does not include coffee, tea, non-carbonated
4325+18 water, infant formula, milk or milk products as defined in the
4326+19 Grade A Pasteurized Milk and Milk Products Act, or drinks
4327+20 containing 50% or more natural fruit or vegetable juice.
4328+21 Notwithstanding any other provisions of this Act,
4329+22 beginning September 1, 2009, "soft drinks" means non-alcoholic
4330+23 beverages that contain natural or artificial sweeteners. "Soft
4331+24 drinks" does not include beverages that contain milk or milk
4332+25 products, soy, rice or similar milk substitutes, or greater
4333+26 than 50% of vegetable or fruit juice by volume.
4334+
4335+
4336+
4337+
4338+
4339+ HB3144 Enrolled - 121 - LRB103 26309 HLH 52670 b
4340+
4341+
4342+HB3144 Enrolled- 122 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 122 - LRB103 26309 HLH 52670 b
4343+ HB3144 Enrolled - 122 - LRB103 26309 HLH 52670 b
4344+1 Until August 1, 2009, and notwithstanding any other
4345+2 provisions of this Act, "food for human consumption that is to
4346+3 be consumed off the premises where it is sold" includes all
4347+4 food sold through a vending machine, except soft drinks and
4348+5 food products that are dispensed hot from a vending machine,
4349+6 regardless of the location of the vending machine. Beginning
4350+7 August 1, 2009, and notwithstanding any other provisions of
4351+8 this Act, "food for human consumption that is to be consumed
4352+9 off the premises where it is sold" includes all food sold
4353+10 through a vending machine, except soft drinks, candy, and food
4354+11 products that are dispensed hot from a vending machine,
4355+12 regardless of the location of the vending machine.
4356+13 Notwithstanding any other provisions of this Act,
4357+14 beginning September 1, 2009, "food for human consumption that
4358+15 is to be consumed off the premises where it is sold" does not
4359+16 include candy. For purposes of this Section, "candy" means a
4360+17 preparation of sugar, honey, or other natural or artificial
4361+18 sweeteners in combination with chocolate, fruits, nuts or
4362+19 other ingredients or flavorings in the form of bars, drops, or
4363+20 pieces. "Candy" does not include any preparation that contains
4364+21 flour or requires refrigeration.
4365+22 Notwithstanding any other provisions of this Act,
4366+23 beginning September 1, 2009, "nonprescription medicines and
4367+24 drugs" does not include grooming and hygiene products. For
4368+25 purposes of this Section, "grooming and hygiene products"
4369+26 includes, but is not limited to, soaps and cleaning solutions,
4370+
4371+
4372+
4373+
4374+
4375+ HB3144 Enrolled - 122 - LRB103 26309 HLH 52670 b
4376+
4377+
4378+HB3144 Enrolled- 123 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 123 - LRB103 26309 HLH 52670 b
4379+ HB3144 Enrolled - 123 - LRB103 26309 HLH 52670 b
4380+1 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4381+2 lotions and screens, unless those products are available by
4382+3 prescription only, regardless of whether the products meet the
4383+4 definition of "over-the-counter-drugs". For the purposes of
4384+5 this paragraph, "over-the-counter-drug" means a drug for human
4385+6 use that contains a label that identifies the product as a drug
4386+7 as required by 21 CFR 201.66. The "over-the-counter-drug"
4387+8 label includes:
4388+9 (A) a "Drug Facts" panel; or
4389+10 (B) a statement of the "active ingredient(s)" with a
4390+11 list of those ingredients contained in the compound,
4391+12 substance or preparation.
4392+13 Beginning on January 1, 2014 (the effective date of Public
4393+14 Act 98-122), "prescription and nonprescription medicines and
4394+15 drugs" includes medical cannabis purchased from a registered
4395+16 dispensing organization under the Compassionate Use of Medical
4396+17 Cannabis Program Act.
4397+18 As used in this Section, "adult use cannabis" means
4398+19 cannabis subject to tax under the Cannabis Cultivation
4399+20 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4400+21 and does not include cannabis subject to tax under the
4401+22 Compassionate Use of Medical Cannabis Program Act.
4402+23 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
4403+24 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
4404+25 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
4405+26 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
4406+
4407+
4408+
4409+
4410+
4411+ HB3144 Enrolled - 123 - LRB103 26309 HLH 52670 b
4412+
4413+
4414+HB3144 Enrolled- 124 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 124 - LRB103 26309 HLH 52670 b
4415+ HB3144 Enrolled - 124 - LRB103 26309 HLH 52670 b
4416+1 (35 ILCS 120/2-27)
4417+2 Sec. 2-27. Prepaid telephone calling arrangements.
4418+3 "Prepaid telephone calling arrangements" mean the right to
4419+4 exclusively purchase telephone or telecommunications services
4420+5 that must be paid for in advance and enable the origination of
4421+6 one or more intrastate, interstate, or international telephone
4422+7 calls or other telecommunications using an access number, an
4423+8 authorization code, or both, whether manually or
4424+9 electronically dialed, for which payment to a retailer must be
4425+10 made in advance, provided that, unless recharged, no further
4426+11 service is provided once that prepaid amount of service has
4427+12 been consumed, and provided further that, on and after January
4428+13 1, 2025, the telephone or telecommunications services included
4429+14 in such arrangement are obtained through the purchase of a
4430+15 preloaded phone, calling card, or other item of tangible
4431+16 personal property. Prepaid telephone calling arrangements
4432+17 include the recharge of a prepaid calling arrangement if and
4433+18 only if, on and after January 1, 2025, the additional
4434+19 telephone or telecommunications services included in the
4435+20 recharge are obtained through the purchase of a preloaded
4436+21 phone, calling card, or other item of tangible personal
4437+22 property. For purposes of this Section, "recharge" means the
4438+23 purchase of additional prepaid telephone or telecommunications
4439+24 services whether or not the purchaser acquires a different
4440+25 access number or authorization code. For purposes of this
4441+
4442+
4443+
4444+
4445+
4446+ HB3144 Enrolled - 124 - LRB103 26309 HLH 52670 b
4447+
4448+
4449+HB3144 Enrolled- 125 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 125 - LRB103 26309 HLH 52670 b
4450+ HB3144 Enrolled - 125 - LRB103 26309 HLH 52670 b
4451+1 Section, "telecommunications" means that term as defined in
4452+2 Section 2 of the Telecommunications Excise Tax Act. "Prepaid
4453+3 telephone calling arrangement" does not include an arrangement
4454+4 whereby the service provider reflects the amount of the
4455+5 purchase as a credit on an account for a customer under an
4456+6 existing subscription plan, nor, on and after January 1, 2025,
4457+7 does it include a recharge that is not obtained through the
4458+8 purchase of a preloaded phone, calling card, or other item of
4459+9 tangible personal property.
4460+10 (Source: P.A. 91-870, eff. 6-22-00.)
4461+11 Section 22. The Prepaid Wireless 9-1-1 Surcharge Act is
4462+12 amended by changing Section 15 as follows:
4463+13 (50 ILCS 753/15)
4464+14 Sec. 15. Prepaid wireless 9-1-1 surcharge.
4465+15 (a) Until September 30, 2015, there is hereby imposed on
4466+16 consumers a prepaid wireless 9-1-1 surcharge of 1.5% per
4467+17 retail transaction. Beginning October 1, 2015, the prepaid
4468+18 wireless 9-1-1 surcharge shall be 3% per retail transaction.
4469+19 Until December 31, 2023 and beginning July 1, 2024, the
4470+20 surcharge authorized by this subsection (a) does not apply in
4471+21 a home rule municipality having a population in excess of
4472+22 500,000.
4473+23 (a-5) On or after the effective date of this amendatory
4474+24 Act of the 98th General Assembly and until December 31, 2023,
4475+
4476+
4477+
4478+
4479+
4480+ HB3144 Enrolled - 125 - LRB103 26309 HLH 52670 b
4481+
4482+
4483+HB3144 Enrolled- 126 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 126 - LRB103 26309 HLH 52670 b
4484+ HB3144 Enrolled - 126 - LRB103 26309 HLH 52670 b
4485+1 and from July 1, 2024 to July 1, 2029, a home rule municipality
4486+2 having a population in excess of 500,000 on the effective date
4487+3 of this amendatory Act may impose a prepaid wireless 9-1-1
4488+4 surcharge not to exceed 9% per retail transaction sourced to
4489+5 that jurisdiction and collected and remitted in accordance
4490+6 with the provisions of subsection (b-5) of this Section.
4491+7 (b) The prepaid wireless 9-1-1 surcharge shall be
4492+8 collected by the seller from the consumer with respect to each
4493+9 retail transaction occurring in this State and shall be
4494+10 remitted to the Department by the seller as provided in this
4495+11 Act. The amount of the prepaid wireless 9-1-1 surcharge shall
4496+12 be separately stated as a distinct item apart from the charge
4497+13 for the prepaid wireless telecommunications service on an
4498+14 invoice, receipt, or other similar document that is provided
4499+15 to the consumer by the seller or shall be otherwise disclosed
4500+16 to the consumer. If the seller does not separately state the
4501+17 surcharge as a distinct item to the consumer as provided in
4502+18 this Section, then the seller shall maintain books and records
4503+19 as required by this Act which clearly identify the amount of
4504+20 the 9-1-1 surcharge for retail transactions.
4505+21 For purposes of this subsection (b), a retail transaction
4506+22 occurs in this State if (i) the retail transaction is made in
4507+23 person by a consumer at the seller's business location and the
4508+24 business is located within the State; (ii) the seller is a
4509+25 provider and sells prepaid wireless telecommunications service
4510+26 to a consumer located in Illinois; (iii) the retail
4511+
4512+
4513+
4514+
4515+
4516+ HB3144 Enrolled - 126 - LRB103 26309 HLH 52670 b
4517+
4518+
4519+HB3144 Enrolled- 127 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 127 - LRB103 26309 HLH 52670 b
4520+ HB3144 Enrolled - 127 - LRB103 26309 HLH 52670 b
4521+1 transaction is treated as occurring in this State for purposes
4522+2 of the Retailers' Occupation Tax Act; or (iv) a seller that is
4523+3 included within the definition of a "retailer maintaining a
4524+4 place of business in this State" under Section 2 of the Use Tax
4525+5 Act makes a sale of prepaid wireless telecommunications
4526+6 service to a consumer located in Illinois. In the case of a
4527+7 retail transaction which does not occur in person at a
4528+8 seller's business location, if a consumer uses a credit card
4529+9 to purchase prepaid wireless telecommunications service
4530+10 on-line or over the telephone, and no product is shipped to the
4531+11 consumer, the transaction occurs in this State if the billing
4532+12 address for the consumer's credit card is in this State.
4533+13 (b-5) The prepaid wireless 9-1-1 surcharge imposed under
4534+14 subsection (a-5) of this Section shall be collected by the
4535+15 seller from the consumer with respect to each retail
4536+16 transaction occurring in the municipality imposing the
4537+17 surcharge. The amount of the prepaid wireless 9-1-1 surcharge
4538+18 shall be separately stated on an invoice, receipt, or other
4539+19 similar document that is provided to the consumer by the
4540+20 seller or shall be otherwise disclosed to the consumer. If the
4541+21 seller does not separately state the surcharge as a distinct
4542+22 item to the consumer as provided in this Section, then the
4543+23 seller shall maintain books and records as required by this
4544+24 Act which clearly identify the amount of the 9-1-1 surcharge
4545+25 for retail transactions.
4546+26 For purposes of this subsection (b-5), a retail
4547+
4548+
4549+
4550+
4551+
4552+ HB3144 Enrolled - 127 - LRB103 26309 HLH 52670 b
4553+
4554+
4555+HB3144 Enrolled- 128 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 128 - LRB103 26309 HLH 52670 b
4556+ HB3144 Enrolled - 128 - LRB103 26309 HLH 52670 b
4557+1 transaction occurs in the municipality if (i) the retail
4558+2 transaction is made in person by a consumer at the seller's
4559+3 business location and the business is located within the
4560+4 municipality; (ii) the seller is a provider and sells prepaid
4561+5 wireless telecommunications service to a consumer located in
4562+6 the municipality; (iii) the retail transaction is treated as
4563+7 occurring in the municipality for purposes of the Retailers'
4564+8 Occupation Tax Act; or (iv) a seller that is included within
4565+9 the definition of a "retailer maintaining a place of business
4566+10 in this State" under Section 2 of the Use Tax Act makes a sale
4567+11 of prepaid wireless telecommunications service to a consumer
4568+12 located in the municipality. In the case of a retail
4569+13 transaction which does not occur in person at a seller's
4570+14 business location, if a consumer uses a credit card to
4571+15 purchase prepaid wireless telecommunications service on-line
4572+16 or over the telephone, and no product is shipped to the
4573+17 consumer, the transaction occurs in the municipality if the
4574+18 billing address for the consumer's credit card is in the
4575+19 municipality.
4576+20 (c) The prepaid wireless 9-1-1 surcharge is imposed on the
4577+21 consumer and not on any provider. The seller shall be liable to
4578+22 remit all prepaid wireless 9-1-1 surcharges that the seller
4579+23 collects from consumers as provided in Section 20, including
4580+24 all such surcharges that the seller is deemed to collect where
4581+25 the amount of the surcharge has not been separately stated on
4582+26 an invoice, receipt, or other similar document provided to the
4583+
4584+
4585+
4586+
4587+
4588+ HB3144 Enrolled - 128 - LRB103 26309 HLH 52670 b
4589+
4590+
4591+HB3144 Enrolled- 129 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 129 - LRB103 26309 HLH 52670 b
4592+ HB3144 Enrolled - 129 - LRB103 26309 HLH 52670 b
4593+1 consumer by the seller. The surcharge collected or deemed
4594+2 collected by a seller shall constitute a debt owed by the
4595+3 seller to this State, and any such surcharge actually
4596+4 collected shall be held in trust for the benefit of the
4597+5 Department.
4598+6 For purposes of this subsection (c), the surcharge shall
4599+7 not be imposed or collected from entities that have an active
4600+8 tax exemption identification number issued by the Department
4601+9 under Section 1g of the Retailers' Occupation Tax Act.
4602+10 (d) The amount of the prepaid wireless 9-1-1 surcharge
4603+11 that is collected by a seller from a consumer, if such amount
4604+12 is separately stated on an invoice, receipt, or other similar
4605+13 document provided to the consumer by the seller, shall not be
4606+14 included in the base for measuring any tax, fee, surcharge, or
4607+15 other charge that is imposed by this State, any political
4608+16 subdivision of this State, or any intergovernmental agency.
4609+17 (e) (Blank).
4610+18 (e-5) Any changes in the rate of the surcharge imposed by a
4611+19 municipality under the authority granted in subsection (a-5)
4612+20 of this Section shall be effective on the first day of the
4613+21 first calendar month to occur at least 60 days after the
4614+22 enactment of the change. The Department shall provide not less
4615+23 than 30 days' notice of the increase or reduction in the rate
4616+24 of such surcharge on the Department's website.
4617+25 (f) When prepaid wireless telecommunications service is
4618+26 sold with one or more other products or services for a single,
4619+
4620+
4621+
4622+
4623+
4624+ HB3144 Enrolled - 129 - LRB103 26309 HLH 52670 b
4625+
4626+
4627+HB3144 Enrolled- 130 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 130 - LRB103 26309 HLH 52670 b
4628+ HB3144 Enrolled - 130 - LRB103 26309 HLH 52670 b
4629+1 non-itemized price, then the percentage specified in
4630+2 subsection (a) or (a-5) of this Section 15 shall be applied to
4631+3 the entire non-itemized price unless the seller elects to
4632+4 apply the percentage to (i) the dollar amount of the prepaid
4633+5 wireless telecommunications service if that dollar amount is
4634+6 disclosed to the consumer or (ii) the portion of the price that
4635+7 is attributable to the prepaid wireless telecommunications
4636+8 service if the retailer can identify that portion by
4637+9 reasonable and verifiable standards from its books and records
4638+10 that are kept in the regular course of business for other
4639+11 purposes, including, but not limited to, books and records
4640+12 that are kept for non-tax purposes. However, if a minimal
4641+13 amount of prepaid wireless telecommunications service is sold
4642+14 with a prepaid wireless device for a single, non-itemized
4643+15 price, then the seller may elect not to apply the percentage
4644+16 specified in subsection (a) or (a-5) of this Section 15 to such
4645+17 transaction. For purposes of this subsection, an amount of
4646+18 service denominated as 10 minutes or less or $5 or less is
4647+19 considered minimal.
4648+20 (g) The prepaid wireless 9-1-1 surcharge imposed under
4649+21 subsections (a) and (a-5) of this Section is not imposed on the
4650+22 provider or the consumer for wireless Lifeline service where
4651+23 the consumer does not pay the provider for the service. Where
4652+24 the consumer purchases from the provider optional minutes,
4653+25 texts, or other services in addition to the federally funded
4654+26 Lifeline benefit, a consumer must pay the prepaid wireless
4655+
4656+
4657+
4658+
4659+
4660+ HB3144 Enrolled - 130 - LRB103 26309 HLH 52670 b
4661+
4662+
4663+HB3144 Enrolled- 131 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 131 - LRB103 26309 HLH 52670 b
4664+ HB3144 Enrolled - 131 - LRB103 26309 HLH 52670 b
4665+1 9-1-1 surcharge, and it must be collected by the seller
4666+2 according to subsection (b-5).
4667+3 (Source: P.A. 102-9, eff. 6-3-21; 103-564, eff. 11-17-23.)
4668+4 Section 25. The Counties Code is amended by changing
4669+5 Sections 5-1009, 5-1030, and 5-1134 and by adding Section
4670+6 5-1006.9 as follows:
4671+7 (55 ILCS 5/5-1006.9 new)
4672+8 Sec. 5-1006.9. County Grocery Occupation Tax Law.
4673+9 (a) The corporate authorities of any county may, by
4674+10 ordinance or resolution that takes effect on or after January
4675+11 1, 2026, impose a tax upon all persons engaged in the business
4676+12 of selling groceries at retail in the county, but outside of
4677+13 any municipality, on the gross receipts from those sales made
4678+14 in the course of that business. If imposed, the tax shall be at
4679+15 the rate of 1% of the gross receipts from these sales.
4680+16 The tax imposed by a county under this subsection and all
4681+17 civil penalties that may be assessed as an incident of the tax
4682+18 shall be collected and enforced by the Department. The
4683+19 certificate of registration that is issued by the Department
4684+20 to a retailer under the Retailers' Occupation Tax Act shall
4685+21 permit the retailer to engage in a business that is taxable
4686+22 under any ordinance or resolution enacted under this
4687+23 subsection without registering separately with the Department
4688+24 under that ordinance or resolution or under this subsection.
4689+
4690+
4691+
4692+
4693+
4694+ HB3144 Enrolled - 131 - LRB103 26309 HLH 52670 b
4695+
4696+
4697+HB3144 Enrolled- 132 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 132 - LRB103 26309 HLH 52670 b
4698+ HB3144 Enrolled - 132 - LRB103 26309 HLH 52670 b
4699+1 The Department shall have full power to administer and
4700+2 enforce this subsection; to collect all taxes and penalties
4701+3 due under this subsection; to dispose of taxes and penalties
4702+4 so collected in the manner provided in this Section and under
4703+5 rules adopted by the Department; and to determine all rights
4704+6 to credit memoranda arising on account of the erroneous
4705+7 payment of tax or penalty under this subsection.
4706+8 In the administration of, and compliance with, this
4707+9 subsection, the Department and persons who are subject to this
4708+10 subsection shall have the same rights, remedies, privileges,
4709+11 immunities, powers, and duties, and be subject to the same
4710+12 conditions, restrictions, limitations, penalties and
4711+13 definitions of terms, and employ the same modes of procedure,
4712+14 as are prescribed in Sections 1, 2 through 2-65 (in respect to
4713+15 all provisions therein other than the State rate of tax), 2c, 3
4714+16 (except as to the disposition of taxes and penalties
4715+17 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
4716+18 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers'
4717+19 Occupation Tax Act and all of the Uniform Penalty and Interest
4718+20 Act, as fully as if those provisions were set forth in this
4719+21 Section.
4720+22 Persons subject to any tax imposed under the authority
4721+23 granted in this subsection may reimburse themselves for their
4722+24 seller's tax liability hereunder by separately stating that
4723+25 tax as an additional charge, which charge may be stated in
4724+26 combination, in a single amount, with State tax that sellers
4725+
4726+
4727+
4728+
4729+
4730+ HB3144 Enrolled - 132 - LRB103 26309 HLH 52670 b
4731+
4732+
4733+HB3144 Enrolled- 133 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 133 - LRB103 26309 HLH 52670 b
4734+ HB3144 Enrolled - 133 - LRB103 26309 HLH 52670 b
4735+1 are required to collect under the Use Tax Act, pursuant to such
4736+2 bracket schedules as the Department may prescribe.
4737+3 (b) If a tax has been imposed under subsection (a), then a
4738+4 service occupation tax must also be imposed at the same rate
4739+5 upon all persons engaged, in the county but outside of a
4740+6 municipality, in the business of making sales of service, who,
4741+7 as an incident to making those sales of service, transfer
4742+8 groceries, as defined in this Section, as an incident to a sale
4743+9 of service.
4744+10 The tax imposed under this subsection and all civil
4745+11 penalties that may be assessed as an incident thereof shall be
4746+12 collected and enforced by the Department. The certificate of
4747+13 registration that is issued by the Department to a retailer
4748+14 under the Retailers' Occupation Tax Act or the Service
4749+15 Occupation Tax Act shall permit the registrant to engage in a
4750+16 business that is taxable under any ordinance or resolution
4751+17 enacted pursuant to this subsection without registering
4752+18 separately with the Department under the ordinance or
4753+19 resolution or under this subsection.
4754+20 The Department shall have full power to administer and
4755+21 enforce this subsection, to collect all taxes and penalties
4756+22 due under this subsection, to dispose of taxes and penalties
4757+23 so collected in the manner provided in this Section and under
4758+24 rules adopted by the Department, and to determine all rights
4759+25 to credit memoranda arising on account of the erroneous
4760+26 payment of a tax or penalty under this subsection.
4761+
4762+
4763+
4764+
4765+
4766+ HB3144 Enrolled - 133 - LRB103 26309 HLH 52670 b
4767+
4768+
4769+HB3144 Enrolled- 134 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 134 - LRB103 26309 HLH 52670 b
4770+ HB3144 Enrolled - 134 - LRB103 26309 HLH 52670 b
4771+1 In the administration of and compliance with this
4772+2 subsection, the Department and persons who are subject to this
4773+3 subsection shall have the same rights, remedies, privileges,
4774+4 immunities, powers and duties, and be subject to the same
4775+5 conditions, restrictions, limitations, penalties and
4776+6 definitions of terms, and employ the same modes of procedure
4777+7 as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
4778+8 to all provisions contained in those Sections other than the
4779+9 State rate of tax), 4, 5, 7, 8, 9 (except as to the disposition
4780+10 of taxes and penalties collected), 10, 11, 12, 13, 15, 16, 17,
4781+11 18, 19, and 20 of the Service Occupation Tax Act and all
4782+12 provisions of the Uniform Penalty and Interest Act, as fully
4783+13 as if those provisions were set forth in this Section.
4784+14 Persons subject to any tax imposed under the authority
4785+15 granted in this subsection may reimburse themselves for their
4786+16 serviceman's tax liability by separately stating the tax as an
4787+17 additional charge, which may be stated in combination, in a
4788+18 single amount, with State tax that servicemen are authorized
4789+19 to collect under the Service Use Tax Act, pursuant to any
4790+20 bracketed schedules set forth by the Department.
4791+21 (c) The Department shall immediately pay over to the State
4792+22 Treasurer, ex officio, as trustee, all taxes and penalties
4793+23 collected under this Section. Those taxes and penalties shall
4794+24 be deposited into the County Grocery Tax Trust Fund, a trust
4795+25 fund created in the State treasury. Except as otherwise
4796+26 provided in this Section, moneys in the County Grocery Tax
4797+
4798+
4799+
4800+
4801+
4802+ HB3144 Enrolled - 134 - LRB103 26309 HLH 52670 b
4803+
4804+
4805+HB3144 Enrolled- 135 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 135 - LRB103 26309 HLH 52670 b
4806+ HB3144 Enrolled - 135 - LRB103 26309 HLH 52670 b
4807+1 Trust Fund shall be used to make payments to counties and for
4808+2 the payment of refunds under this Section.
4809+3 Moneys deposited into the County Grocery Tax Trust Fund
4810+4 under this Section are not subject to appropriation and shall
4811+5 be used as provided in this Section. All deposits into the
4812+6 County Grocery Tax Trust Fund shall be held in the County
4813+7 Grocery Tax Trust Fund by the State Treasurer, ex officio, as
4814+8 trustee separate and apart from all public moneys or funds of
4815+9 this State.
4816+10 Whenever the Department determines that a refund should be
4817+11 made under this Section to a claimant instead of issuing a
4818+12 credit memorandum, the Department shall notify the State
4819+13 Comptroller, who shall cause the order to be drawn for the
4820+14 amount specified and to the person named in the notification
4821+15 from the Department. The refund shall be paid by the State
4822+16 Treasurer out of the County Grocery Tax Trust Fund.
4823+17 (d) As soon as possible after the first day of each month,
4824+18 upon certification of the Department, the Comptroller shall
4825+19 order transferred, and the Treasurer shall transfer, to the
4826+20 STAR Bonds Revenue Fund the local sales tax increment, if any,
4827+21 as defined in the Innovation Development and Economy Act,
4828+22 collected under this Section.
4829+23 After the monthly transfer to the STAR Bonds Revenue Fund,
4830+24 if any, on or before the 25th day of each calendar month, the
4831+25 Department shall prepare and certify to the Comptroller the
4832+26 disbursement of stated sums of money to named counties, the
4833+
4834+
4835+
4836+
4837+
4838+ HB3144 Enrolled - 135 - LRB103 26309 HLH 52670 b
4839+
4840+
4841+HB3144 Enrolled- 136 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 136 - LRB103 26309 HLH 52670 b
4842+ HB3144 Enrolled - 136 - LRB103 26309 HLH 52670 b
4843+1 counties to be those from which retailers have paid taxes or
4844+2 penalties under this Section to the Department during the
4845+3 second preceding calendar month. The amount to be paid to each
4846+4 county shall be the amount (not including credit memoranda)
4847+5 collected under this Section during the second preceding
4848+6 calendar month by the Department plus an amount the Department
4849+7 determines is necessary to offset any amounts that were
4850+8 erroneously paid to a different taxing body, and not including
4851+9 an amount equal to the amount of refunds made during the second
4852+10 preceding calendar month by the Department on behalf of such
4853+11 county, and not including any amount that the Department
4854+12 determines is necessary to offset any amounts that were
4855+13 payable to a different taxing body but were erroneously paid
4856+14 to the county, and not including any amounts that are
4857+15 transferred to the STAR Bonds Revenue Fund. Within 10 days
4858+16 after receipt by the Comptroller of the disbursement
4859+17 certification to the counties provided for in this Section to
4860+18 be given to the Comptroller by the Department, the Comptroller
4861+19 shall cause the orders to be drawn for the amounts in
4862+20 accordance with the directions contained in the certification.
4863+21 (e) Nothing in this Section shall be construed to
4864+22 authorize a county to impose a tax upon the privilege of
4865+23 engaging in any business which under the Constitution of the
4866+24 United States may not be made the subject of taxation by this
4867+25 State.
4868+26 (f) Except as otherwise provided in this subsection, an
4869+
4870+
4871+
4872+
4873+
4874+ HB3144 Enrolled - 136 - LRB103 26309 HLH 52670 b
4875+
4876+
4877+HB3144 Enrolled- 137 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 137 - LRB103 26309 HLH 52670 b
4878+ HB3144 Enrolled - 137 - LRB103 26309 HLH 52670 b
4879+1 ordinance or resolution imposing or discontinuing the tax
4880+2 hereunder or effecting a change in the rate thereof shall
4881+3 either (i) be adopted and a certified copy thereof filed with
4882+4 the Department on or before the first day of April, whereupon
4883+5 the Department shall proceed to administer and enforce this
4884+6 Section as of the first day of July next following the adoption
4885+7 and filing, or (ii) be adopted and a certified copy thereof
4886+8 filed with the Department on or before the first day of
4887+9 October, whereupon the Department shall proceed to administer
4888+10 and enforce this Section as of the first day of January next
4889+11 following the adoption and filing.
4890+12 (g) When certifying the amount of a monthly disbursement
4891+13 to a county under this Section, the Department shall increase
4892+14 or decrease the amount by an amount necessary to offset any
4893+15 misallocation of previous disbursements. The offset amount
4894+16 shall be the amount erroneously disbursed within the previous
4895+17 6 months from the time a misallocation is discovered.
4896+18 (h) As used in this Section, "Department" means the
4897+19 Department of Revenue.
4898+20 For purposes of the tax authorized to be imposed under
4899+21 subsection (a), "groceries" has the same meaning as "food for
4900+22 human consumption that is to be consumed off the premises
4901+23 where it is sold (other than alcoholic beverages, food
4902+24 consisting of or infused with adult use cannabis, soft drinks,
4903+25 candy, and food that has been prepared for immediate
4904+26 consumption)", as further defined in Section 2-10 of the
4905+
4906+
4907+
4908+
4909+
4910+ HB3144 Enrolled - 137 - LRB103 26309 HLH 52670 b
4911+
4912+
4913+HB3144 Enrolled- 138 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 138 - LRB103 26309 HLH 52670 b
4914+ HB3144 Enrolled - 138 - LRB103 26309 HLH 52670 b
4915+1 Retailers' Occupation Tax Act.
4916+2 For purposes of the tax authorized to be imposed under
4917+3 subsection (b), "groceries" has the same meaning as "food for
4918+4 human consumption that is to be consumed off the premises
4919+5 where it is sold (other than alcoholic beverages, food
4920+6 consisting of or infused with adult use cannabis, soft drinks,
4921+7 candy, and food that has been prepared for immediate
4922+8 consumption)", as further defined in Section 3-10 of the
4923+9 Service Occupation Tax Act.
4924+10 For purposes of the tax authorized to be imposed under
4925+11 subsection (b), "groceries" also means food prepared for
4926+12 immediate consumption and transferred incident to a sale of
4927+13 service subject to the Service Occupation Tax Act or the
4928+14 Service Use Tax Act by an entity licensed under the Hospital
4929+15 Licensing Act, the Nursing Home Care Act, the Assisted Living
4930+16 and Shared Housing Act, the ID/DD Community Care Act, the
4931+17 MC/DD Act, the Specialized Mental Health Rehabilitation Act of
4932+18 2013, or the Child Care Act of 1969, or an entity that holds a
4933+19 permit issued pursuant to the Life Care Facilities Act.
4934+20 (i) This Section may be referred to as the County Grocery
4935+21 Occupation Tax Law.
4936+22 (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
4937+23 Sec. 5-1009. Limitation on home rule powers. Except as
4938+24 provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1006.9
4939+25 5-1007, and 5-1008, on and after September 1, 1990, no home
4940+
4941+
4942+
4943+
4944+
4945+ HB3144 Enrolled - 138 - LRB103 26309 HLH 52670 b
4946+
4947+
4948+HB3144 Enrolled- 139 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 139 - LRB103 26309 HLH 52670 b
4949+ HB3144 Enrolled - 139 - LRB103 26309 HLH 52670 b
4950+1 rule county has the authority to impose, pursuant to its home
4951+2 rule authority, a retailers' occupation tax, service
4952+3 occupation tax, use tax, sales tax or other tax on the use,
4953+4 sale or purchase of tangible personal property based on the
4954+5 gross receipts from such sales or the selling or purchase
4955+6 price of said tangible personal property. Notwithstanding the
4956+7 foregoing, this Section does not preempt any home rule imposed
4957+8 tax such as the following: (1) a tax on alcoholic beverages,
4958+9 whether based on gross receipts, volume sold or any other
4959+10 measurement; (2) a tax based on the number of units of
4960+11 cigarettes or tobacco products; (3) a tax, however measured,
4961+12 based on the use of a hotel or motel room or similar facility;
4962+13 (4) a tax, however measured, on the sale or transfer of real
4963+14 property; (5) a tax, however measured, on lease receipts; (6)
4964+15 a tax on food prepared for immediate consumption and on
4965+16 alcoholic beverages sold by a business which provides for on
4966+17 premise consumption of said food or alcoholic beverages; or
4967+18 (7) other taxes not based on the selling or purchase price or
4968+19 gross receipts from the use, sale or purchase of tangible
4969+20 personal property. This Section does not preempt a home rule
4970+21 county from imposing a tax, however measured, on the use, for
4971+22 consideration, of a parking lot, garage, or other parking
4972+23 facility.
4973+24 On and after December 1, 2019, no home rule county has the
4974+25 authority to impose, pursuant to its home rule authority, a
4975+26 tax, however measured, on sales of aviation fuel, as defined
4976+
4977+
4978+
4979+
4980+
4981+ HB3144 Enrolled - 139 - LRB103 26309 HLH 52670 b
4982+
4983+
4984+HB3144 Enrolled- 140 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 140 - LRB103 26309 HLH 52670 b
4985+ HB3144 Enrolled - 140 - LRB103 26309 HLH 52670 b
4986+1 in Section 3 of the Retailers' Occupation Tax Act, unless the
4987+2 tax revenue is expended for airport-related purposes. For
4988+3 purposes of this Section, "airport-related purposes" has the
4989+4 meaning ascribed in Section 6z-20.2 of the State Finance Act.
4990+5 Aviation fuel shall be excluded from tax only for so long as
4991+6 the revenue use requirements of 49 U.S.C. 47017(b) and 49
4992+7 U.S.C. 47133 are binding on the county.
4993+8 This Section is a limitation, pursuant to subsection (g)
4994+9 of Section 6 of Article VII of the Illinois Constitution, on
4995+10 the power of home rule units to tax. The changes made to this
4996+11 Section by Public Act 101-10 are a denial and limitation of
4997+12 home rule powers and functions under subsection (g) of Section
4998+13 6 of Article VII of the Illinois Constitution.
4999+14 (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
5000+15 102-558, eff. 8-20-21.)
5001+16 (55 ILCS 5/5-1030) (from Ch. 34, par. 5-1030)
5002+17 Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
5003+18 (a) The corporate authorities of any county may by
5004+19 ordinance impose a tax upon all persons engaged in such county
5005+20 in the business of renting, leasing or letting rooms in a hotel
5006+21 which is not located within a city, village, or incorporated
5007+22 town that imposes a tax under Section 8-3-14 of the Illinois
5008+23 Municipal Code, as defined in "The Hotel Operators' Occupation
5009+24 Tax Act", at a rate not to exceed 5% of the gross rental
5010+25 receipts from such renting, leasing or letting, excluding,
5011+
5012+
5013+
5014+
5015+
5016+ HB3144 Enrolled - 140 - LRB103 26309 HLH 52670 b
5017+
5018+
5019+HB3144 Enrolled- 141 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 141 - LRB103 26309 HLH 52670 b
5020+ HB3144 Enrolled - 141 - LRB103 26309 HLH 52670 b
5021+1 however, from gross rental receipts, the proceeds of such
5022+2 renting, leasing or letting to permanent residents of that
5023+3 hotel, and may provide for the administration and enforcement
5024+4 of the tax, and for the collection thereof from the persons
5025+5 subject to the tax, as the corporate authorities determine to
5026+6 be necessary or practicable for the effective administration
5027+7 of the tax.
5028+8 (b) With the consent of municipalities representing at
5029+9 least 67% of the population of Winnebago County, as determined
5030+10 by the 2010 federal decennial census and as expressed by
5031+11 resolution of the corporate authorities of those
5032+12 municipalities, the county board of Winnebago County may, by
5033+13 ordinance, impose a tax upon all persons engaged in the county
5034+14 in the business of renting, leasing, or letting rooms in a
5035+15 hotel that imposes a tax under Section 8-3-14 of the Illinois
5036+16 Municipal Code, as defined in the "The Hotel Operators'
5037+17 Occupation Tax Act", at a rate not to exceed 2% of the gross
5038+18 rental receipts from renting, leasing, or letting, excluding,
5039+19 however, from gross rental receipts, the proceeds of the
5040+20 renting, leasing, or letting to permanent residents of that
5041+21 hotel, and may provide for the administration and enforcement
5042+22 of the tax, and for the collection thereof from the persons
5043+23 subject to the tax, as the county board determines to be
5044+24 necessary or practicable for the effective administration of
5045+25 the tax. The tax shall be instituted on a county-wide basis and
5046+26 shall be in addition to any tax imposed by this or any other
5047+
5048+
5049+
5050+
5051+
5052+ HB3144 Enrolled - 141 - LRB103 26309 HLH 52670 b
5053+
5054+
5055+HB3144 Enrolled- 142 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 142 - LRB103 26309 HLH 52670 b
5056+ HB3144 Enrolled - 142 - LRB103 26309 HLH 52670 b
5057+1 provision of law. The revenue generated under this subsection
5058+2 shall be accounted for and segregated from all other funds of
5059+3 the county and shall be utilized solely for either: (1)
5060+4 encouraging, supporting, marketing, constructing, or
5061+5 operating, either directly by the county or through other
5062+6 taxing bodies within the county, sports, arts, or other
5063+7 entertainment or tourism facilities or programs for the
5064+8 purpose of promoting tourism, competitiveness, job growth, and
5065+9 for the general health and well-being of the citizens of the
5066+10 county; or (2) payment towards debt services on bonds issued
5067+11 for the purposes set forth in this subsection.
5068+12 (b-5) The county board of Sangamon County may, by
5069+13 ordinance, impose a tax upon all persons engaged in the county
5070+14 in the business of renting, leasing, or letting rooms in a
5071+15 hotel that imposes a tax under Section 8-3-14 of the Illinois
5072+16 Municipal Code, as defined in the Hotel Operators' Occupation
5073+17 Tax Act, at a rate not to exceed 3% of the gross rental
5074+18 receipts from renting, leasing, or letting, excluding,
5075+19 however, from gross rental receipts, the proceeds of the
5076+20 renting, leasing, or letting to permanent residents of that
5077+21 hotel, and may provide for the administration and enforcement
5078+22 of the tax, and for the collection thereof from the persons
5079+23 subject to the tax, as the county board determines to be
5080+24 necessary or practicable for the effective administration of
5081+25 the tax. The tax shall be instituted on a county-wide basis and
5082+26 shall be in addition to any tax imposed by this or any other
5083+
5084+
5085+
5086+
5087+
5088+ HB3144 Enrolled - 142 - LRB103 26309 HLH 52670 b
5089+
5090+
5091+HB3144 Enrolled- 143 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 143 - LRB103 26309 HLH 52670 b
5092+ HB3144 Enrolled - 143 - LRB103 26309 HLH 52670 b
5093+1 provision of law. The revenue generated under this subsection
5094+2 shall be accounted for and segregated from all other funds of
5095+3 the county and shall be used solely for either: (1)
5096+4 encouraging, supporting, marketing, constructing, or
5097+5 operating, either directly by the county or through other
5098+6 taxing bodies within the county, sports, arts, or other
5099+7 entertainment or tourism facilities or programs for the
5100+8 purpose of promoting tourism, competitiveness, job growth, and
5101+9 for the general health and well-being of the citizens of the
5102+10 county; or (2) payment towards debt services on bonds issued
5103+11 for the purposes set forth in this subsection.
5104+12 (c) A Tourism Facility Board shall be established,
5105+13 comprised of a representative from the county and from each
5106+14 municipality that has approved the imposition of the tax under
5107+15 subsection (b) of this Section.
5108+16 (1) A Board member's vote is weighted based on the
5109+17 municipality's population relative to the population of
5110+18 the county, with the county representing the population
5111+19 within unincorporated areas of the county. Representatives
5112+20 from the Rockford Park District and Rockford Area
5113+21 Convention and Visitors Bureau shall serve as ex-officio
5114+22 members with no voting rights.
5115+23 (2) The Board must meet not less frequently than once
5116+24 per year to direct the use of revenues collected from the
5117+25 tax imposed under subsection (b) of this Section that are
5118+26 not already directed for use pursuant to an
5119+
5120+
5121+
5122+
5123+
5124+ HB3144 Enrolled - 143 - LRB103 26309 HLH 52670 b
5125+
5126+
5127+HB3144 Enrolled- 144 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 144 - LRB103 26309 HLH 52670 b
5128+ HB3144 Enrolled - 144 - LRB103 26309 HLH 52670 b
5129+1 intergovernmental agreement between the county and another
5130+2 entity represented on the Board, including the ex-officio
5131+3 members, and for any other reason the Board deems
5132+4 necessary. Affirmative actions of the Board shall require
5133+5 a weighted vote of Board members representing not less
5134+6 than 67% of the population of the county.
5135+7 (3) The Board shall not be a separate unit of local
5136+8 government, shall have no paid staff, and members of the
5137+9 Board shall receive no compensation or reimbursement of
5138+10 expenses from proceeds of the tax imposed under subsection
5139+11 (b) of this Section.
5140+12 (d) Persons subject to any tax imposed pursuant to
5141+13 authority granted by this Section may reimburse themselves for
5142+14 their tax liability for such tax by separately stating such
5143+15 tax as an additional charge, which charge may be stated in
5144+16 combination, in a single amount, with State tax imposed under
5145+17 "The Hotel Operators' Occupation Tax Act".
5146+18 Nothing in this Section shall be construed to authorize a
5147+19 county to impose a tax upon the privilege of engaging in any
5148+20 business which under the Constitution of the United States may
5149+21 not be made the subject of taxation by this State.
5150+22 An ordinance or resolution imposing a tax hereunder or
5151+23 effecting a change in the rate thereof shall be effective on
5152+24 the first day of the calendar month next following its passage
5153+25 and required publication.
5154+26 The amounts collected by any county pursuant to this
5155+
5156+
5157+
5158+
5159+
5160+ HB3144 Enrolled - 144 - LRB103 26309 HLH 52670 b
5161+
5162+
5163+HB3144 Enrolled- 145 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 145 - LRB103 26309 HLH 52670 b
5164+ HB3144 Enrolled - 145 - LRB103 26309 HLH 52670 b
5165+1 Section shall be expended to promote tourism; conventions;
5166+2 expositions; theatrical, sports and cultural activities within
5167+3 that county or otherwise to attract nonresident overnight
5168+4 visitors to the county.
5169+5 Any county may agree with any unit of local government,
5170+6 including any authority defined as a metropolitan exposition,
5171+7 auditorium and office building authority, fair and exposition
5172+8 authority, exposition and auditorium authority, or civic
5173+9 center authority created pursuant to provisions of Illinois
5174+10 law and the territory of which unit of local government or
5175+11 authority is co-extensive with or wholly within such county,
5176+12 to impose and collect for a period not to exceed 40 years, any
5177+13 portion or all of the tax authorized pursuant to this Section
5178+14 and to transmit such tax so collected to such unit of local
5179+15 government or authority. The amount so paid shall be expended
5180+16 by any such unit of local government or authority for the
5181+17 purposes for which such tax is authorized. Any such agreement
5182+18 must be authorized by resolution or ordinance, as the case may
5183+19 be, of such county and unit of local government or authority,
5184+20 and such agreement may provide for the irrevocable imposition
5185+21 and collection of said tax at such rate, or amount as limited
5186+22 by a given rate, as may be agreed upon for the full period of
5187+23 time set forth in such agreement; and such agreement may
5188+24 further provide for any other terms as deemed necessary or
5189+25 advisable by such county and such unit of local government or
5190+26 authority. Any such agreement shall be binding and enforceable
5191+
5192+
5193+
5194+
5195+
5196+ HB3144 Enrolled - 145 - LRB103 26309 HLH 52670 b
5197+
5198+
5199+HB3144 Enrolled- 146 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 146 - LRB103 26309 HLH 52670 b
5200+ HB3144 Enrolled - 146 - LRB103 26309 HLH 52670 b
5201+1 by either party to such agreement. Such agreement entered into
5202+2 pursuant to this Section shall not in any event constitute an
5203+3 indebtedness of such county subject to any limitation imposed
5204+4 by statute or otherwise.
5205+5 (Source: P.A. 98-313, eff. 8-12-13.)
5206+6 (55 ILCS 5/5-1134)
5207+7 Sec. 5-1134. Project labor agreements.
5208+8 (a) Any sports, arts, or entertainment facilities that
5209+9 receive revenue from a tax imposed under subsection (b) or
5210+10 (b-5) of Section 5-1030 of this Code shall be considered to be
5211+11 public works within the meaning of the Prevailing Wage Act.
5212+12 The county authorities responsible for the construction,
5213+13 renovation, modification, or alteration of the sports, arts,
5214+14 or entertainment facilities shall enter into project labor
5215+15 agreements with labor organizations as defined in the National
5216+16 Labor Relations Act to assure that no labor dispute interrupts
5217+17 or interferes with the construction, renovation, modification,
5218+18 or alteration of the projects.
5219+19 (b) The project labor agreements must include the
5220+20 following:
5221+21 (1) provisions establishing the minimum hourly wage
5222+22 for each class of labor organization employees;
5223+23 (2) provisions establishing the benefits and other
5224+24 compensation for such class of labor organization; and
5225+25 (3) provisions establishing that no strike or disputes
5226+
5227+
5228+
5229+
5230+
5231+ HB3144 Enrolled - 146 - LRB103 26309 HLH 52670 b
5232+
5233+
5234+HB3144 Enrolled- 147 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 147 - LRB103 26309 HLH 52670 b
5235+ HB3144 Enrolled - 147 - LRB103 26309 HLH 52670 b
5236+1 will be engaged in by the labor organization employees.
5237+2 The county, taxing bodies, municipalities, and the labor
5238+3 organizations shall have the authority to include other terms
5239+4 and conditions as they deem necessary.
5240+5 (c) The project labor agreement shall be filed with the
5241+6 Director of the Illinois Department of Labor in accordance
5242+7 with procedures established by the Department. At a minimum,
5243+8 the project labor agreement must provide the names, addresses,
5244+9 and occupations of the owner of the facilities and the
5245+10 individuals representing the labor organization employees
5246+11 participating in the project labor agreement. The agreement
5247+12 must also specify the terms and conditions required in
5248+13 subsection (b) of this Section.
5249+14 (d) In any agreement for the construction or
5250+15 rehabilitation of a facility using revenue generated under
5251+16 subsection (b) or (b-5) of Section 5-1030 of this Code, in
5252+17 connection with the prequalification of general contractors
5253+18 for construction or rehabilitation of the facility, it shall
5254+19 be required that a commitment will be submitted detailing how
5255+20 the general contractor will expend 15% or more of the
5256+21 aggregate dollar value of the project as a whole with one or
5257+22 more minority-owned businesses, women-owned businesses, or
5258+23 businesses owned by a person with a disability, as these terms
5259+24 are defined in Section 2 of the Business Enterprise for
5260+25 Minorities, Women, and Persons with Disabilities Act.
5261+26 (Source: P.A. 100-391, eff. 8-25-17.)
5262+
5263+
5264+
5265+
5266+
5267+ HB3144 Enrolled - 147 - LRB103 26309 HLH 52670 b
5268+
5269+
5270+HB3144 Enrolled- 148 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 148 - LRB103 26309 HLH 52670 b
5271+ HB3144 Enrolled - 148 - LRB103 26309 HLH 52670 b
5272+1 Section 30. The Illinois Municipal Code is amended by
5273+2 changing Sections 8-11-1.1 and 8-11-6a and adding Section
5274+3 8-11-24 as follows:
5275+4 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
5276+5 Sec. 8-11-1.1. Non-home rule municipalities; imposition of
5277+6 taxes.
5278+7 (a) The corporate authorities of a non-home rule
5279+8 municipality may, upon approval of the electors of the
5280+9 municipality pursuant to subsection (b) of this Section,
5281+10 impose by ordinance or resolution the taxes tax authorized in
5282+11 Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
5283+12 (b) (Blank). The corporate authorities of the municipality
5284+13 may by ordinance or resolution call for the submission to the
5285+14 electors of the municipality the question of whether the
5286+15 municipality shall impose such tax. Such question shall be
5287+16 certified by the municipal clerk to the election authority in
5288+17 accordance with Section 28-5 of the Election Code and shall be
5289+18 in a form in accordance with Section 16-7 of the Election Code.
5290+19 Notwithstanding any provision of law to the contrary, if
5291+20 the proceeds of the tax may be used for municipal operations
5292+21 pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
5293+22 election authority must submit the question in substantially
5294+23 the following form:
5295+24 Shall the corporate authorities of the municipality be
5296+
5297+
5298+
5299+
5300+
5301+ HB3144 Enrolled - 148 - LRB103 26309 HLH 52670 b
5302+
5303+
5304+HB3144 Enrolled- 149 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 149 - LRB103 26309 HLH 52670 b
5305+ HB3144 Enrolled - 149 - LRB103 26309 HLH 52670 b
5306+1 authorized to levy a tax at a rate of (rate)% for
5307+2 expenditures on municipal operations, expenditures on
5308+3 public infrastructure, or property tax relief?
5309+4 If a majority of the electors in the municipality voting
5310+5 upon the question vote in the affirmative, such tax shall be
5311+6 imposed.
5312+7 (c) Until January 1, 1992, an ordinance or resolution
5313+8 imposing the tax of not more than 1% hereunder or
5314+9 discontinuing the same shall be adopted and a certified copy
5315+10 thereof, together with a certification that the ordinance or
5316+11 resolution received referendum approval in the case of the
5317+12 imposition of such tax, filed with the Department of Revenue,
5318+13 on or before the first day of June, whereupon the Department
5319+14 shall proceed to administer and enforce the additional tax or
5320+15 to discontinue the tax, as the case may be, as of the first day
5321+16 of September next following such adoption and filing.
5322+17 Beginning January 1, 1992 and through December 31, 1992,
5323+18 an ordinance or resolution imposing or discontinuing the tax
5324+19 hereunder shall be adopted and a certified copy thereof filed
5325+20 with the Department on or before the first day of July,
5326+21 whereupon the Department shall proceed to administer and
5327+22 enforce this Section as of the first day of October next
5328+23 following such adoption and filing.
5329+24 Beginning January 1, 1993, and through September 30, 2002,
5330+25 an ordinance or resolution imposing or discontinuing the tax
5331+26 hereunder shall be adopted and a certified copy thereof filed
5332+
5333+
5334+
5335+
5336+
5337+ HB3144 Enrolled - 149 - LRB103 26309 HLH 52670 b
5338+
5339+
5340+HB3144 Enrolled- 150 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 150 - LRB103 26309 HLH 52670 b
5341+ HB3144 Enrolled - 150 - LRB103 26309 HLH 52670 b
5342+1 with the Department on or before the first day of October,
5343+2 whereupon the Department shall proceed to administer and
5344+3 enforce this Section as of the first day of January next
5345+4 following such adoption and filing.
5346+5 Beginning October 1, 2002, and through December 31, 2013,
5347+6 an ordinance or resolution imposing or discontinuing the tax
5348+7 under this Section or effecting a change in the rate of tax
5349+8 must either (i) be adopted and a certified copy of the
5350+9 ordinance or resolution filed with the Department on or before
5351+10 the first day of April, whereupon the Department shall proceed
5352+11 to administer and enforce this Section as of the first day of
5353+12 July next following the adoption and filing; or (ii) be
5354+13 adopted and a certified copy of the ordinance or resolution
5355+14 filed with the Department on or before the first day of
5356+15 October, whereupon the Department shall proceed to administer
5357+16 and enforce this Section as of the first day of January next
5358+17 following the adoption and filing.
5359+18 Beginning January 1, 2014, if an ordinance or resolution
5360+19 imposing the tax under this Section, discontinuing the tax
5361+20 under this Section, or effecting a change in the rate of tax
5362+21 under this Section is adopted, a certified copy thereof,
5363+22 together with a certification that the ordinance or resolution
5364+23 received referendum approval in the case of the imposition of
5365+24 or increase in the rate of such tax, shall be filed with the
5366+25 Department of Revenue, either (i) on or before the first day of
5367+26 May, whereupon the Department shall proceed to administer and
5368+
5369+
5370+
5371+
5372+
5373+ HB3144 Enrolled - 150 - LRB103 26309 HLH 52670 b
5374+
5375+
5376+HB3144 Enrolled- 151 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 151 - LRB103 26309 HLH 52670 b
5377+ HB3144 Enrolled - 151 - LRB103 26309 HLH 52670 b
5378+1 enforce this Section as of the first day of July next following
5379+2 the adoption and filing; or (ii) on or before the first day of
5380+3 October, whereupon the Department shall proceed to administer
5381+4 and enforce this Section as of the first day of January next
5382+5 following the adoption and filing.
5383+6 Notwithstanding any provision in this Section to the
5384+7 contrary, if, in a non-home rule municipality with more than
5385+8 150,000 but fewer than 200,000 inhabitants, as determined by
5386+9 the last preceding federal decennial census, an ordinance or
5387+10 resolution under this Section imposes or discontinues a tax or
5388+11 changes the tax rate as of July 1, 2007, then that ordinance or
5389+12 resolution, together with a certification that the ordinance
5390+13 or resolution received referendum approval in the case of the
5391+14 imposition of the tax, must be adopted and a certified copy of
5392+15 that ordinance or resolution must be filed with the Department
5393+16 on or before May 15, 2007, whereupon the Department shall
5394+17 proceed to administer and enforce this Section as of July 1,
5395+18 2007.
5396+19 Notwithstanding any provision in this Section to the
5397+20 contrary, if, in a non-home rule municipality with more than
5398+21 6,500 but fewer than 7,000 inhabitants, as determined by the
5399+22 last preceding federal decennial census, an ordinance or
5400+23 resolution under this Section imposes or discontinues a tax or
5401+24 changes the tax rate on or before May 20, 2009, then that
5402+25 ordinance or resolution, together with a certification that
5403+26 the ordinance or resolution received referendum approval in
5404+
5405+
5406+
5407+
5408+
5409+ HB3144 Enrolled - 151 - LRB103 26309 HLH 52670 b
5410+
5411+
5412+HB3144 Enrolled- 152 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 152 - LRB103 26309 HLH 52670 b
5413+ HB3144 Enrolled - 152 - LRB103 26309 HLH 52670 b
5414+1 the case of the imposition of the tax, must be adopted and a
5415+2 certified copy of that ordinance or resolution must be filed
5416+3 with the Department on or before May 20, 2009, whereupon the
5417+4 Department shall proceed to administer and enforce this
5418+5 Section as of July 1, 2009.
5419+6 A non-home rule municipality may file a certified copy of
5420+7 an ordinance or resolution, with a certification that the
5421+8 ordinance or resolution received referendum approval in the
5422+9 case of the imposition of the tax, with the Department of
5423+10 Revenue, as required under this Section, only after October 2,
5424+11 2000.
5425+12 The tax authorized by this Section may not be more than 1%
5426+13 and may be imposed only in 1/4% increments.
5427+14 (Source: P.A. 98-584, eff. 8-27-13.)
5428+15 (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
5429+16 Sec. 8-11-6a. Home rule municipalities; preemption of
5430+17 certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
5431+18 8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on
5432+19 and after September 1, 1990, no home rule municipality has the
5433+20 authority to impose, pursuant to its home rule authority, a
5434+21 retailer's occupation tax, service occupation tax, use tax,
5435+22 sales tax or other tax on the use, sale or purchase of tangible
5436+23 personal property based on the gross receipts from such sales
5437+24 or the selling or purchase price of said tangible personal
5438+25 property. Notwithstanding the foregoing, this Section does not
5439+
5440+
5441+
5442+
5443+
5444+ HB3144 Enrolled - 152 - LRB103 26309 HLH 52670 b
5445+
5446+
5447+HB3144 Enrolled- 153 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 153 - LRB103 26309 HLH 52670 b
5448+ HB3144 Enrolled - 153 - LRB103 26309 HLH 52670 b
5449+1 preempt any home rule imposed tax such as the following: (1) a
5450+2 tax on alcoholic beverages, whether based on gross receipts,
5451+3 volume sold or any other measurement; (2) a tax based on the
5452+4 number of units of cigarettes or tobacco products (provided,
5453+5 however, that a home rule municipality that has not imposed a
5454+6 tax based on the number of units of cigarettes or tobacco
5455+7 products before July 1, 1993, shall not impose such a tax after
5456+8 that date); (3) a tax, however measured, based on the use of a
5457+9 hotel or motel room or similar facility; (4) a tax, however
5458+10 measured, on the sale or transfer of real property; (5) a tax,
5459+11 however measured, on lease receipts; (6) a tax on food
5460+12 prepared for immediate consumption and on alcoholic beverages
5461+13 sold by a business which provides for on premise consumption
5462+14 of said food or alcoholic beverages; or (7) other taxes not
5463+15 based on the selling or purchase price or gross receipts from
5464+16 the use, sale or purchase of tangible personal property. This
5465+17 Section does not preempt a home rule municipality with a
5466+18 population of more than 2,000,000 from imposing a tax, however
5467+19 measured, on the use, for consideration, of a parking lot,
5468+20 garage, or other parking facility. This Section is not
5469+21 intended to affect any existing tax on food and beverages
5470+22 prepared for immediate consumption on the premises where the
5471+23 sale occurs, or any existing tax on alcoholic beverages, or
5472+24 any existing tax imposed on the charge for renting a hotel or
5473+25 motel room, which was in effect January 15, 1988, or any
5474+26 extension of the effective date of such an existing tax by
5475+
5476+
5477+
5478+
5479+
5480+ HB3144 Enrolled - 153 - LRB103 26309 HLH 52670 b
5481+
5482+
5483+HB3144 Enrolled- 154 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 154 - LRB103 26309 HLH 52670 b
5484+ HB3144 Enrolled - 154 - LRB103 26309 HLH 52670 b
5485+1 ordinance of the municipality imposing the tax, which
5486+2 extension is hereby authorized, in any non-home rule
5487+3 municipality in which the imposition of such a tax has been
5488+4 upheld by judicial determination, nor is this Section intended
5489+5 to preempt the authority granted by Public Act 85-1006. On and
5490+6 after December 1, 2019, no home rule municipality has the
5491+7 authority to impose, pursuant to its home rule authority, a
5492+8 tax, however measured, on sales of aviation fuel, as defined
5493+9 in Section 3 of the Retailers' Occupation Tax Act, unless the
5494+10 tax is not subject to the revenue use requirements of 49 U.S.C.
5495+11 47107(b) and 49 U.S.C. 47133, or unless the tax revenue is
5496+12 expended for airport-related purposes. For purposes of this
5497+13 Section, "airport-related purposes" has the meaning ascribed
5498+14 in Section 6z-20.2 of the State Finance Act. Aviation fuel
5499+15 shall be excluded from tax only if, and for so long as, the
5500+16 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
5501+17 47133 are binding on the municipality. This Section is a
5502+18 limitation, pursuant to subsection (g) of Section 6 of Article
5503+19 VII of the Illinois Constitution, on the power of home rule
5504+20 units to tax. The changes made to this Section by Public Act
5505+21 101-10 are a denial and limitation of home rule powers and
5506+22 functions under subsection (g) of Section 6 of Article VII of
5507+23 the Illinois Constitution.
5508+24 (Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
5509+25 101-593, eff. 12-4-19.)
5510+
5511+
5512+
5513+
5514+
5515+ HB3144 Enrolled - 154 - LRB103 26309 HLH 52670 b
5516+
5517+
5518+HB3144 Enrolled- 155 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 155 - LRB103 26309 HLH 52670 b
5519+ HB3144 Enrolled - 155 - LRB103 26309 HLH 52670 b
5520+1 (65 ILCS 5/8-11-24 new)
5521+2 Sec. 8-11-24. Municipal Grocery Occupation Tax Law.
5522+3 (a) The corporate authorities of any municipality may, by
5523+4 ordinance or resolution that takes effect on or after January
5524+5 1, 2026, impose a tax upon all persons engaged in the business
5525+6 of selling groceries at retail in the municipality on the
5526+7 gross receipts from those sales made in the course of that
5527+8 business. If imposed, the tax shall be at the rate of 1% of the
5528+9 gross receipts from these sales.
5529+10 The tax imposed by a municipality under this subsection
5530+11 and all civil penalties that may be assessed as an incident of
5531+12 the tax shall be collected and enforced by the Department. The
5532+13 certificate of registration that is issued by the Department
5533+14 to a retailer under the Retailers' Occupation Tax Act shall
5534+15 permit the retailer to engage in a business that is taxable
5535+16 under any ordinance or resolution enacted under this
5536+17 subsection without registering separately with the Department
5537+18 under that ordinance or resolution or under this subsection.
5538+19 The Department shall have full power to administer and
5539+20 enforce this subsection; to collect all taxes and penalties
5540+21 due under this subsection; to dispose of taxes and penalties
5541+22 so collected in the manner provided in this Section and under
5542+23 rules adopted by the Department; and to determine all rights
5543+24 to credit memoranda arising on account of the erroneous
5544+25 payment of tax or penalty under this subsection.
5545+26 In the administration of, and compliance with, this
5546+
5547+
5548+
5549+
5550+
5551+ HB3144 Enrolled - 155 - LRB103 26309 HLH 52670 b
5552+
5553+
5554+HB3144 Enrolled- 156 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 156 - LRB103 26309 HLH 52670 b
5555+ HB3144 Enrolled - 156 - LRB103 26309 HLH 52670 b
5556+1 subsection, the Department and persons who are subject to this
5557+2 subsection shall have the same rights, remedies, privileges,
5558+3 immunities, powers, and duties, and be subject to the same
5559+4 conditions, restrictions, limitations, penalties and
5560+5 definitions of terms, and employ the same modes of procedure,
5561+6 as are prescribed in Sections 1, 2 through 2-65 (in respect to
5562+7 all provisions therein other than the State rate of tax), 2c, 3
5563+8 (except as to the disposition of taxes and penalties
5564+9 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
5565+10 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers'
5566+11 Occupation Tax Act and all of the Uniform Penalty and Interest
5567+12 Act, as fully as if those provisions were set forth in this
5568+13 Section.
5569+14 Persons subject to any tax imposed under the authority
5570+15 granted in this subsection may reimburse themselves for their
5571+16 seller's tax liability hereunder by separately stating that
5572+17 tax as an additional charge, which charge may be stated in
5573+18 combination, in a single amount, with State tax which sellers
5574+19 are required to collect under the Use Tax Act, pursuant to such
5575+20 bracket schedules as the Department may prescribe.
5576+21 (b) If a tax has been imposed under subsection (a), then a
5577+22 service occupation tax must also be imposed at the same rate
5578+23 upon all persons engaged, in the municipality, in the business
5579+24 of making sales of service, who, as an incident to making those
5580+25 sales of service, transfer groceries, as defined in this
5581+26 Section, as an incident to a sale of service.
5582+
5583+
5584+
5585+
5586+
5587+ HB3144 Enrolled - 156 - LRB103 26309 HLH 52670 b
5588+
5589+
5590+HB3144 Enrolled- 157 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 157 - LRB103 26309 HLH 52670 b
5591+ HB3144 Enrolled - 157 - LRB103 26309 HLH 52670 b
5592+1 The tax imposed under this subsection and all civil
5593+2 penalties that may be assessed as an incident thereof shall be
5594+3 collected and enforced by the Department. The certificate of
5595+4 registration that is issued by the Department to a retailer
5596+5 under the Retailers' Occupation Tax Act or the Service
5597+6 Occupation Tax Act shall permit the registrant to engage in a
5598+7 business that is taxable under any ordinance or resolution
5599+8 enacted pursuant to this subsection without registering
5600+9 separately with the Department under the ordinance or
5601+10 resolution or under this subsection.
5602+11 The Department shall have full power to administer and
5603+12 enforce this subsection, to collect all taxes and penalties
5604+13 due under this subsection, to dispose of taxes and penalties
5605+14 so collected in the manner provided in this Section and under
5606+15 rules adopted by the Department, and to determine all rights
5607+16 to credit memoranda arising on account of the erroneous
5608+17 payment of a tax or penalty under this subsection.
5609+18 In the administration of and compliance with this
5610+19 subsection, the Department and persons who are subject to this
5611+20 subsection shall have the same rights, remedies, privileges,
5612+21 immunities, powers and duties, and be subject to the same
5613+22 conditions, restrictions, limitations, penalties and
5614+23 definitions of terms, and employ the same modes of procedure
5615+24 as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
5616+25 to all provisions contained in those Sections other than the
5617+26 State rate of tax), 4, 5, 7, 8, 9 (except as to the disposition
5618+
5619+
5620+
5621+
5622+
5623+ HB3144 Enrolled - 157 - LRB103 26309 HLH 52670 b
5624+
5625+
5626+HB3144 Enrolled- 158 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 158 - LRB103 26309 HLH 52670 b
5627+ HB3144 Enrolled - 158 - LRB103 26309 HLH 52670 b
5628+1 of taxes and penalties collected), 10, 11, 12, 13, 15, 16, 17,
5629+2 18, 19, and 20 of the Service Occupation Tax Act and all
5630+3 provisions of the Uniform Penalty and Interest Act, as fully
5631+4 as if those provisions were set forth in this Section.
5632+5 Persons subject to any tax imposed under the authority
5633+6 granted in this subsection may reimburse themselves for their
5634+7 serviceman's tax liability by separately stating the tax as an
5635+8 additional charge, which may be stated in combination, in a
5636+9 single amount, with State tax that servicemen are authorized
5637+10 to collect under the Service Use Tax Act, pursuant to any
5638+11 bracketed schedules set forth by the Department.
5639+12 (c) The Department shall immediately pay over to the State
5640+13 Treasurer, ex officio, as trustee, all taxes and penalties
5641+14 collected under this Section. Those taxes and penalties shall
5642+15 be deposited into the Municipal Grocery Tax Trust Fund, a
5643+16 trust fund created in the State treasury. Except as otherwise
5644+17 provided in this Section, moneys in the Municipal Grocery Tax
5645+18 Trust Fund shall be used to make payments to municipalities
5646+19 and for the payment of refunds under this Section.
5647+20 Moneys deposited into the Municipal Grocery Tax Trust Fund
5648+21 under this Section are not subject to appropriation and shall
5649+22 be used as provided in this Section. All deposits into the
5650+23 Municipal Grocery Tax Trust Fund shall be held in the
5651+24 Municipal Grocery Tax Trust Fund by the State Treasurer, ex
5652+25 officio, as trustee separate and apart from all public moneys
5653+26 or funds of this State.
5654+
5655+
5656+
5657+
5658+
5659+ HB3144 Enrolled - 158 - LRB103 26309 HLH 52670 b
5660+
5661+
5662+HB3144 Enrolled- 159 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 159 - LRB103 26309 HLH 52670 b
5663+ HB3144 Enrolled - 159 - LRB103 26309 HLH 52670 b
5664+1 Whenever the Department determines that a refund should be
5665+2 made under this Section to a claimant instead of issuing a
5666+3 credit memorandum, the Department shall notify the State
5667+4 Comptroller, who shall cause the order to be drawn for the
5668+5 amount specified and to the person named in the notification
5669+6 from the Department. The refund shall be paid by the State
5670+7 Treasurer out of the Municipal Grocery Tax Trust Fund.
5671+8 (d) As soon as possible after the first day of each month,
5672+9 upon certification of the Department, the Comptroller shall
5673+10 order transferred, and the Treasurer shall transfer, to the
5674+11 STAR Bonds Revenue Fund the local sales tax increment, if any,
5675+12 as defined in the Innovation Development and Economy Act,
5676+13 collected under this Section.
5677+14 After the monthly transfer to the STAR Bonds Revenue Fund,
5678+15 if any, on or before the 25th day of each calendar month, the
5679+16 Department shall prepare and certify to the Comptroller the
5680+17 disbursement of stated sums of money to named municipalities,
5681+18 the municipalities to be those from which retailers have paid
5682+19 taxes or penalties under this Section to the Department during
5683+20 the second preceding calendar month. The amount to be paid to
5684+21 each municipality shall be the amount (not including credit
5685+22 memoranda) collected under this Section during the second
5686+23 preceding calendar month by the Department plus an amount the
5687+24 Department determines is necessary to offset any amounts that
5688+25 were erroneously paid to a different taxing body, and not
5689+26 including an amount equal to the amount of refunds made during
5690+
5691+
5692+
5693+
5694+
5695+ HB3144 Enrolled - 159 - LRB103 26309 HLH 52670 b
5696+
5697+
5698+HB3144 Enrolled- 160 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 160 - LRB103 26309 HLH 52670 b
5699+ HB3144 Enrolled - 160 - LRB103 26309 HLH 52670 b
5700+1 the second preceding calendar month by the Department on
5701+2 behalf of such municipality, and not including any amount that
5702+3 the Department determines is necessary to offset any amounts
5703+4 that were payable to a different taxing body but were
5704+5 erroneously paid to the municipality, and not including any
5705+6 amounts that are transferred to the STAR Bonds Revenue Fund.
5706+7 Within 10 days after receipt by the Comptroller of the
5707+8 disbursement certification to the municipalities provided for
5708+9 in this Section to be given to the Comptroller by the
5709+10 Department, the Comptroller shall cause the orders to be drawn
5710+11 for the amounts in accordance with the directions contained in
5711+12 the certification.
5712+13 (e) Nothing in this Section shall be construed to
5713+14 authorize a municipality to impose a tax upon the privilege of
5714+15 engaging in any business which under the Constitution of the
5715+16 United States may not be made the subject of taxation by this
5716+17 State.
5717+18 (f) Except as otherwise provided in this subsection, an
5718+19 ordinance or resolution imposing or discontinuing the tax
5719+20 hereunder or effecting a change in the rate thereof shall
5720+21 either (i) be adopted and a certified copy thereof filed with
5721+22 the Department on or before the first day of April, whereupon
5722+23 the Department shall proceed to administer and enforce this
5723+24 Section as of the first day of July next following the adoption
5724+25 and filing or (ii) be adopted and a certified copy thereof
5725+26 filed with the Department on or before the first day of
5726+
5727+
5728+
5729+
5730+
5731+ HB3144 Enrolled - 160 - LRB103 26309 HLH 52670 b
5732+
5733+
5734+HB3144 Enrolled- 161 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 161 - LRB103 26309 HLH 52670 b
5735+ HB3144 Enrolled - 161 - LRB103 26309 HLH 52670 b
5736+1 October, whereupon the Department shall proceed to administer
5737+2 and enforce this Section as of the first day of January next
5738+3 following the adoption and filing.
5739+4 (g) When certifying the amount of a monthly disbursement
5740+5 to a municipality under this Section, the Department shall
5741+6 increase or decrease the amount by an amount necessary to
5742+7 offset any misallocation of previous disbursements. The offset
5743+8 amount shall be the amount erroneously disbursed within the
5744+9 previous 6 months from the time a misallocation is discovered.
5745+10 (h) As used in this Section, "Department" means the
5746+11 Department of Revenue.
5747+12 For purposes of the tax authorized to be imposed under
5748+13 subsection (a), "groceries" has the same meaning as "food for
5749+14 human consumption that is to be consumed off the premises
5750+15 where it is sold (other than alcoholic beverages, food
5751+16 consisting of or infused with adult use cannabis, soft drinks,
5752+17 candy, and food that has been prepared for immediate
5753+18 consumption)", as further defined in Section 2-10 of the
5754+19 Retailers' Occupation Tax Act.
5755+20 For purposes of the tax authorized to be imposed under
5756+21 subsection (b), "groceries" has the same meaning as "food for
5757+22 human consumption that is to be consumed off the premises
5758+23 where it is sold (other than alcoholic beverages, food
5759+24 consisting of or infused with adult use cannabis, soft drinks,
5760+25 candy, and food that has been prepared for immediate
5761+26 consumption)", as further defined in Section 3-10 of the
5762+
5763+
5764+
5765+
5766+
5767+ HB3144 Enrolled - 161 - LRB103 26309 HLH 52670 b
5768+
5769+
5770+HB3144 Enrolled- 162 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 162 - LRB103 26309 HLH 52670 b
5771+ HB3144 Enrolled - 162 - LRB103 26309 HLH 52670 b
5772+1 Service Occupation Tax Act. For purposes of the tax authorized
5773+2 to be imposed under subsection (b), "groceries" also means
5774+3 food prepared for immediate consumption and transferred
5775+4 incident to a sale of service subject to the Service
5776+5 Occupation Tax Act or the Service Use Tax Act by an entity
5777+6 licensed under the Hospital Licensing Act, the Nursing Home
5778+7 Care Act, the Assisted Living and Shared Housing Act, the
5779+8 ID/DD Community Care Act, the MC/DD Act, the Specialized
5780+9 Mental Health Rehabilitation Act of 2013, or the Child Care
5781+10 Act of 1969, or an entity that holds a permit issued pursuant
5782+11 to the Life Care Facilities Act.
5783+12 (i) This Section may be referred to as the Municipal
5784+13 Grocery Occupation Tax Law.
5785+14 Section 35. The Regional Transportation Authority Act is
5786+15 amended by changing Section 4.03 as follows:
5787+16 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
5788+17 Sec. 4.03. Taxes.
5789+18 (a) In order to carry out any of the powers or purposes of
5790+19 the Authority, the Board may by ordinance adopted with the
5791+20 concurrence of 12 of the then Directors, impose throughout the
5792+21 metropolitan region any or all of the taxes provided in this
5793+22 Section. Except as otherwise provided in this Act, taxes
5794+23 imposed under this Section and civil penalties imposed
5795+24 incident thereto shall be collected and enforced by the State
5796+
5797+
5798+
5799+
5800+
5801+ HB3144 Enrolled - 162 - LRB103 26309 HLH 52670 b
5802+
5803+
5804+HB3144 Enrolled- 163 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 163 - LRB103 26309 HLH 52670 b
5805+ HB3144 Enrolled - 163 - LRB103 26309 HLH 52670 b
5806+1 Department of Revenue. The Department shall have the power to
5807+2 administer and enforce the taxes and to determine all rights
5808+3 for refunds for erroneous payments of the taxes. Nothing in
5809+4 Public Act 95-708 is intended to invalidate any taxes
5810+5 currently imposed by the Authority. The increased vote
5811+6 requirements to impose a tax shall only apply to actions taken
5812+7 after January 1, 2008 (the effective date of Public Act
5813+8 95-708).
5814+9 (b) The Board may impose a public transportation tax upon
5815+10 all persons engaged in the metropolitan region in the business
5816+11 of selling at retail motor fuel for operation of motor
5817+12 vehicles upon public highways. The tax shall be at a rate not
5818+13 to exceed 5% of the gross receipts from the sales of motor fuel
5819+14 in the course of the business. As used in this Act, the term
5820+15 "motor fuel" shall have the same meaning as in the Motor Fuel
5821+16 Tax Law. The Board may provide for details of the tax. The
5822+17 provisions of any tax shall conform, as closely as may be
5823+18 practicable, to the provisions of the Municipal Retailers
5824+19 Occupation Tax Act, including without limitation, conformity
5825+20 to penalties with respect to the tax imposed and as to the
5826+21 powers of the State Department of Revenue to promulgate and
5827+22 enforce rules and regulations relating to the administration
5828+23 and enforcement of the provisions of the tax imposed, except
5829+24 that reference in the Act to any municipality shall refer to
5830+25 the Authority and the tax shall be imposed only with regard to
5831+26 receipts from sales of motor fuel in the metropolitan region,
5832+
5833+
5834+
5835+
5836+
5837+ HB3144 Enrolled - 163 - LRB103 26309 HLH 52670 b
5838+
5839+
5840+HB3144 Enrolled- 164 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 164 - LRB103 26309 HLH 52670 b
5841+ HB3144 Enrolled - 164 - LRB103 26309 HLH 52670 b
5842+1 at rates as limited by this Section.
5843+2 (c) In connection with the tax imposed under paragraph (b)
5844+3 of this Section, the Board may impose a tax upon the privilege
5845+4 of using in the metropolitan region motor fuel for the
5846+5 operation of a motor vehicle upon public highways, the tax to
5847+6 be at a rate not in excess of the rate of tax imposed under
5848+7 paragraph (b) of this Section. The Board may provide for
5849+8 details of the tax.
5850+9 (d) The Board may impose a motor vehicle parking tax upon
5851+10 the privilege of parking motor vehicles at off-street parking
5852+11 facilities in the metropolitan region at which a fee is
5853+12 charged, and may provide for reasonable classifications in and
5854+13 exemptions to the tax, for administration and enforcement
5855+14 thereof and for civil penalties and refunds thereunder and may
5856+15 provide criminal penalties thereunder, the maximum penalties
5857+16 not to exceed the maximum criminal penalties provided in the
5858+17 Retailers' Occupation Tax Act. The Authority may collect and
5859+18 enforce the tax itself or by contract with any unit of local
5860+19 government. The State Department of Revenue shall have no
5861+20 responsibility for the collection and enforcement unless the
5862+21 Department agrees with the Authority to undertake the
5863+22 collection and enforcement. As used in this paragraph, the
5864+23 term "parking facility" means a parking area or structure
5865+24 having parking spaces for more than 2 vehicles at which motor
5866+25 vehicles are permitted to park in return for an hourly, daily,
5867+26 or other periodic fee, whether publicly or privately owned,
5868+
5869+
5870+
5871+
5872+
5873+ HB3144 Enrolled - 164 - LRB103 26309 HLH 52670 b
5874+
5875+
5876+HB3144 Enrolled- 165 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 165 - LRB103 26309 HLH 52670 b
5877+ HB3144 Enrolled - 165 - LRB103 26309 HLH 52670 b
5878+1 but does not include parking spaces on a public street, the use
5879+2 of which is regulated by parking meters.
5880+3 (e) The Board may impose a Regional Transportation
5881+4 Authority Retailers' Occupation Tax upon all persons engaged
5882+5 in the business of selling tangible personal property at
5883+6 retail in the metropolitan region. In Cook County, the tax
5884+7 rate shall be 1.25% of the gross receipts from sales of food
5885+8 for human consumption that is to be consumed off the premises
5886+9 where it is sold (other than alcoholic beverages, food
5887+10 consisting of or infused with adult use cannabis, soft drinks,
5888+11 candy, and food that has been prepared for immediate
5889+12 consumption) and tangible personal property taxed at the 1%
5890+13 rate under the Retailers' Occupation Tax Act (or at the 0% rate
5891+14 imposed under this amendatory Act of the 102nd General
5892+15 Assembly), and 1% of the gross receipts from other taxable
5893+16 sales made in the course of that business. In DuPage, Kane,
5894+17 Lake, McHenry, and Will counties, the tax rate shall be 0.75%
5895+18 of the gross receipts from all taxable sales made in the course
5896+19 of that business. The rate of tax imposed in DuPage, Kane,
5897+20 Lake, McHenry, and Will counties under this Section on sales
5898+21 of aviation fuel on or after December 1, 2019 shall, however,
5899+22 be 0.25% unless the Regional Transportation Authority in
5900+23 DuPage, Kane, Lake, McHenry, and Will counties has an
5901+24 "airport-related purpose" and the additional 0.50% of the
5902+25 0.75% tax on aviation fuel is expended for airport-related
5903+26 purposes. If there is no airport-related purpose to which
5904+
5905+
5906+
5907+
5908+
5909+ HB3144 Enrolled - 165 - LRB103 26309 HLH 52670 b
5910+
5911+
5912+HB3144 Enrolled- 166 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 166 - LRB103 26309 HLH 52670 b
5913+ HB3144 Enrolled - 166 - LRB103 26309 HLH 52670 b
5914+1 aviation fuel tax revenue is dedicated, then aviation fuel is
5915+2 excluded from the additional 0.50% of the 0.75% tax. The tax
5916+3 imposed under this Section and all civil penalties that may be
5917+4 assessed as an incident thereof shall be collected and
5918+5 enforced by the State Department of Revenue. The Department
5919+6 shall have full power to administer and enforce this Section;
5920+7 to collect all taxes and penalties so collected in the manner
5921+8 hereinafter provided; and to determine all rights to credit
5922+9 memoranda arising on account of the erroneous payment of tax
5923+10 or penalty hereunder. In the administration of, and compliance
5924+11 with this Section, the Department and persons who are subject
5925+12 to this Section shall have the same rights, remedies,
5926+13 privileges, immunities, powers, and duties, and be subject to
5927+14 the same conditions, restrictions, limitations, penalties,
5928+15 exclusions, exemptions, and definitions of terms, and employ
5929+16 the same modes of procedure, as are prescribed in Sections 1,
5930+17 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
5931+18 all provisions therein other than the State rate of tax), 2c, 3
5932+19 (except as to the disposition of taxes and penalties
5933+20 collected, and except that the retailer's discount is not
5934+21 allowed for taxes paid on aviation fuel that are subject to the
5935+22 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
5936+23 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
5937+24 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of the
5938+25 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
5939+26 Penalty and Interest Act, as fully as if those provisions were
5940+
5941+
5942+
5943+
5944+
5945+ HB3144 Enrolled - 166 - LRB103 26309 HLH 52670 b
5946+
5947+
5948+HB3144 Enrolled- 167 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 167 - LRB103 26309 HLH 52670 b
5949+ HB3144 Enrolled - 167 - LRB103 26309 HLH 52670 b
5950+1 set forth herein.
5951+2 The Board and DuPage, Kane, Lake, McHenry, and Will
5952+3 counties must comply with the certification requirements for
5953+4 airport-related purposes under Section 2-22 of the Retailers'
5954+5 Occupation Tax Act. For purposes of this Section,
5955+6 "airport-related purposes" has the meaning ascribed in Section
5956+7 6z-20.2 of the State Finance Act. This exclusion for aviation
5957+8 fuel only applies for so long as the revenue use requirements
5958+9 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
5959+10 Authority.
5960+11 Persons subject to any tax imposed under the authority
5961+12 granted in this Section may reimburse themselves for their
5962+13 seller's tax liability hereunder by separately stating the tax
5963+14 as an additional charge, which charge may be stated in
5964+15 combination in a single amount with State taxes that sellers
5965+16 are required to collect under the Use Tax Act, under any
5966+17 bracket schedules the Department may prescribe.
5967+18 Whenever the Department determines that a refund should be
5968+19 made under this Section to a claimant instead of issuing a
5969+20 credit memorandum, the Department shall notify the State
5970+21 Comptroller, who shall cause the warrant to be drawn for the
5971+22 amount specified, and to the person named, in the notification
5972+23 from the Department. The refund shall be paid by the State
5973+24 Treasurer out of the Regional Transportation Authority tax
5974+25 fund established under paragraph (n) of this Section or the
5975+26 Local Government Aviation Trust Fund, as appropriate.
5976+
5977+
5978+
5979+
5980+
5981+ HB3144 Enrolled - 167 - LRB103 26309 HLH 52670 b
5982+
5983+
5984+HB3144 Enrolled- 168 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 168 - LRB103 26309 HLH 52670 b
5985+ HB3144 Enrolled - 168 - LRB103 26309 HLH 52670 b
5986+1 If a tax is imposed under this subsection (e), a tax shall
5987+2 also be imposed under subsections (f) and (g) of this Section.
5988+3 For the purpose of determining whether a tax authorized
5989+4 under this Section is applicable, a retail sale by a producer
5990+5 of coal or other mineral mined in Illinois, is a sale at retail
5991+6 at the place where the coal or other mineral mined in Illinois
5992+7 is extracted from the earth. This paragraph does not apply to
5993+8 coal or other mineral when it is delivered or shipped by the
5994+9 seller to the purchaser at a point outside Illinois so that the
5995+10 sale is exempt under the Federal Constitution as a sale in
5996+11 interstate or foreign commerce.
5997+12 No tax shall be imposed or collected under this subsection
5998+13 on the sale of a motor vehicle in this State to a resident of
5999+14 another state if that motor vehicle will not be titled in this
6000+15 State.
6001+16 Nothing in this Section shall be construed to authorize
6002+17 the Regional Transportation Authority to impose a tax upon the
6003+18 privilege of engaging in any business that under the
6004+19 Constitution of the United States may not be made the subject
6005+20 of taxation by this State.
6006+21 (f) If a tax has been imposed under paragraph (e), a
6007+22 Regional Transportation Authority Service Occupation Tax shall
6008+23 also be imposed upon all persons engaged, in the metropolitan
6009+24 region in the business of making sales of service, who as an
6010+25 incident to making the sales of service, transfer tangible
6011+26 personal property within the metropolitan region, either in
6012+
6013+
6014+
6015+
6016+
6017+ HB3144 Enrolled - 168 - LRB103 26309 HLH 52670 b
6018+
6019+
6020+HB3144 Enrolled- 169 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 169 - LRB103 26309 HLH 52670 b
6021+ HB3144 Enrolled - 169 - LRB103 26309 HLH 52670 b
6022+1 the form of tangible personal property or in the form of real
6023+2 estate as an incident to a sale of service. In Cook County, the
6024+3 tax rate shall be: (1) 1.25% of the serviceman's cost price of
6025+4 food prepared for immediate consumption and transferred
6026+5 incident to a sale of service subject to the service
6027+6 occupation tax by an entity that is located in the
6028+7 metropolitan region and that is licensed under the Hospital
6029+8 Licensing Act, the Nursing Home Care Act, the Assisted Living
6030+9 and Shared Housing Act, the Specialized Mental Health
6031+10 Rehabilitation Act of 2013, the ID/DD Community Care Act, or
6032+11 the MC/DD Act, or the Child Care Act of 1969, or an entity that
6033+12 holds a permit issued pursuant to the Life Care Facilities Act
6034+13 that is located in the metropolitan region; (2) 1.25% of the
6035+14 selling price of food for human consumption that is to be
6036+15 consumed off the premises where it is sold (other than
6037+16 alcoholic beverages, food consisting of or infused with adult
6038+17 use cannabis, soft drinks, candy, and food that has been
6039+18 prepared for immediate consumption) and tangible personal
6040+19 property taxed at the 1% rate under the Service Occupation Tax
6041+20 Act (or at the 0% rate imposed under this amendatory Act of the
6042+21 102nd General Assembly); and (3) 1% of the selling price from
6043+22 other taxable sales of tangible personal property transferred.
6044+23 In DuPage, Kane, Lake, McHenry, and Will counties, the rate
6045+24 shall be 0.75% of the selling price of all tangible personal
6046+25 property transferred. The rate of tax imposed in DuPage, Kane,
6047+26 Lake, McHenry, and Will counties under this Section on sales
6048+
6049+
6050+
6051+
6052+
6053+ HB3144 Enrolled - 169 - LRB103 26309 HLH 52670 b
6054+
6055+
6056+HB3144 Enrolled- 170 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 170 - LRB103 26309 HLH 52670 b
6057+ HB3144 Enrolled - 170 - LRB103 26309 HLH 52670 b
6058+1 of aviation fuel on or after December 1, 2019 shall, however,
6059+2 be 0.25% unless the Regional Transportation Authority in
6060+3 DuPage, Kane, Lake, McHenry, and Will counties has an
6061+4 "airport-related purpose" and the additional 0.50% of the
6062+5 0.75% tax on aviation fuel is expended for airport-related
6063+6 purposes. If there is no airport-related purpose to which
6064+7 aviation fuel tax revenue is dedicated, then aviation fuel is
6065+8 excluded from the additional 0.5% of the 0.75% tax.
6066+9 The Board and DuPage, Kane, Lake, McHenry, and Will
6067+10 counties must comply with the certification requirements for
6068+11 airport-related purposes under Section 2-22 of the Retailers'
6069+12 Occupation Tax Act. For purposes of this Section,
6070+13 "airport-related purposes" has the meaning ascribed in Section
6071+14 6z-20.2 of the State Finance Act. This exclusion for aviation
6072+15 fuel only applies for so long as the revenue use requirements
6073+16 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
6074+17 Authority.
6075+18 The tax imposed under this paragraph and all civil
6076+19 penalties that may be assessed as an incident thereof shall be
6077+20 collected and enforced by the State Department of Revenue. The
6078+21 Department shall have full power to administer and enforce
6079+22 this paragraph; to collect all taxes and penalties due
6080+23 hereunder; to dispose of taxes and penalties collected in the
6081+24 manner hereinafter provided; and to determine all rights to
6082+25 credit memoranda arising on account of the erroneous payment
6083+26 of tax or penalty hereunder. In the administration of and
6084+
6085+
6086+
6087+
6088+
6089+ HB3144 Enrolled - 170 - LRB103 26309 HLH 52670 b
6090+
6091+
6092+HB3144 Enrolled- 171 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 171 - LRB103 26309 HLH 52670 b
6093+ HB3144 Enrolled - 171 - LRB103 26309 HLH 52670 b
6094+1 compliance with this paragraph, the Department and persons who
6095+2 are subject to this paragraph shall have the same rights,
6096+3 remedies, privileges, immunities, powers, and duties, and be
6097+4 subject to the same conditions, restrictions, limitations,
6098+5 penalties, exclusions, exemptions, and definitions of terms,
6099+6 and employ the same modes of procedure, as are prescribed in
6100+7 Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
6101+8 provisions therein other than the State rate of tax), 4
6102+9 (except that the reference to the State shall be to the
6103+10 Authority), 5, 7, 8 (except that the jurisdiction to which the
6104+11 tax shall be a debt to the extent indicated in that Section 8
6105+12 shall be the Authority), 9 (except as to the disposition of
6106+13 taxes and penalties collected, and except that the returned
6107+14 merchandise credit for this tax may not be taken against any
6108+15 State tax, and except that the retailer's discount is not
6109+16 allowed for taxes paid on aviation fuel that are subject to the
6110+17 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
6111+18 47133), 10, 11, 12 (except the reference therein to Section 2b
6112+19 of the Retailers' Occupation Tax Act), 13 (except that any
6113+20 reference to the State shall mean the Authority), the first
6114+21 paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service
6115+22 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
6116+23 Interest Act, as fully as if those provisions were set forth
6117+24 herein.
6118+25 Persons subject to any tax imposed under the authority
6119+26 granted in this paragraph may reimburse themselves for their
6120+
6121+
6122+
6123+
6124+
6125+ HB3144 Enrolled - 171 - LRB103 26309 HLH 52670 b
6126+
6127+
6128+HB3144 Enrolled- 172 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 172 - LRB103 26309 HLH 52670 b
6129+ HB3144 Enrolled - 172 - LRB103 26309 HLH 52670 b
6130+1 serviceman's tax liability hereunder by separately stating the
6131+2 tax as an additional charge, that charge may be stated in
6132+3 combination in a single amount with State tax that servicemen
6133+4 are authorized to collect under the Service Use Tax Act, under
6134+5 any bracket schedules the Department may prescribe.
6135+6 Whenever the Department determines that a refund should be
6136+7 made under this paragraph to a claimant instead of issuing a
6137+8 credit memorandum, the Department shall notify the State
6138+9 Comptroller, who shall cause the warrant to be drawn for the
6139+10 amount specified, and to the person named in the notification
6140+11 from the Department. The refund shall be paid by the State
6141+12 Treasurer out of the Regional Transportation Authority tax
6142+13 fund established under paragraph (n) of this Section or the
6143+14 Local Government Aviation Trust Fund, as appropriate.
6144+15 Nothing in this paragraph shall be construed to authorize
6145+16 the Authority to impose a tax upon the privilege of engaging in
6146+17 any business that under the Constitution of the United States
6147+18 may not be made the subject of taxation by the State.
6148+19 (g) If a tax has been imposed under paragraph (e), a tax
6149+20 shall also be imposed upon the privilege of using in the
6150+21 metropolitan region, any item of tangible personal property
6151+22 that is purchased outside the metropolitan region at retail
6152+23 from a retailer, and that is titled or registered with an
6153+24 agency of this State's government. In Cook County, the tax
6154+25 rate shall be 1% of the selling price of the tangible personal
6155+26 property, as "selling price" is defined in the Use Tax Act. In
6156+
6157+
6158+
6159+
6160+
6161+ HB3144 Enrolled - 172 - LRB103 26309 HLH 52670 b
6162+
6163+
6164+HB3144 Enrolled- 173 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 173 - LRB103 26309 HLH 52670 b
6165+ HB3144 Enrolled - 173 - LRB103 26309 HLH 52670 b
6166+1 DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
6167+2 shall be 0.75% of the selling price of the tangible personal
6168+3 property, as "selling price" is defined in the Use Tax Act. The
6169+4 tax shall be collected from persons whose Illinois address for
6170+5 titling or registration purposes is given as being in the
6171+6 metropolitan region. The tax shall be collected by the
6172+7 Department of Revenue for the Regional Transportation
6173+8 Authority. The tax must be paid to the State, or an exemption
6174+9 determination must be obtained from the Department of Revenue,
6175+10 before the title or certificate of registration for the
6176+11 property may be issued. The tax or proof of exemption may be
6177+12 transmitted to the Department by way of the State agency with
6178+13 which, or the State officer with whom, the tangible personal
6179+14 property must be titled or registered if the Department and
6180+15 the State agency or State officer determine that this
6181+16 procedure will expedite the processing of applications for
6182+17 title or registration.
6183+18 The Department shall have full power to administer and
6184+19 enforce this paragraph; to collect all taxes, penalties, and
6185+20 interest due hereunder; to dispose of taxes, penalties, and
6186+21 interest collected in the manner hereinafter provided; and to
6187+22 determine all rights to credit memoranda or refunds arising on
6188+23 account of the erroneous payment of tax, penalty, or interest
6189+24 hereunder. In the administration of and compliance with this
6190+25 paragraph, the Department and persons who are subject to this
6191+26 paragraph shall have the same rights, remedies, privileges,
6192+
6193+
6194+
6195+
6196+
6197+ HB3144 Enrolled - 173 - LRB103 26309 HLH 52670 b
6198+
6199+
6200+HB3144 Enrolled- 174 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 174 - LRB103 26309 HLH 52670 b
6201+ HB3144 Enrolled - 174 - LRB103 26309 HLH 52670 b
6202+1 immunities, powers, and duties, and be subject to the same
6203+2 conditions, restrictions, limitations, penalties, exclusions,
6204+3 exemptions, and definitions of terms and employ the same modes
6205+4 of procedure, as are prescribed in Sections 2 (except the
6206+5 definition of "retailer maintaining a place of business in
6207+6 this State"), 3 through 3-80 (except provisions pertaining to
6208+7 the State rate of tax, and except provisions concerning
6209+8 collection or refunding of the tax by retailers), 4, 11, 12,
6210+9 12a, 14, 15, 19 (except the portions pertaining to claims by
6211+10 retailers and except the last paragraph concerning refunds),
6212+11 20, 21, and 22 of the Use Tax Act, and are not inconsistent
6213+12 with this paragraph, as fully as if those provisions were set
6214+13 forth herein.
6215+14 Whenever the Department determines that a refund should be
6216+15 made under this paragraph to a claimant instead of issuing a
6217+16 credit memorandum, the Department shall notify the State
6218+17 Comptroller, who shall cause the order to be drawn for the
6219+18 amount specified, and to the person named in the notification
6220+19 from the Department. The refund shall be paid by the State
6221+20 Treasurer out of the Regional Transportation Authority tax
6222+21 fund established under paragraph (n) of this Section.
6223+22 (h) The Authority may impose a replacement vehicle tax of
6224+23 $50 on any passenger car as defined in Section 1-157 of the
6225+24 Illinois Vehicle Code purchased within the metropolitan region
6226+25 by or on behalf of an insurance company to replace a passenger
6227+26 car of an insured person in settlement of a total loss claim.
6228+
6229+
6230+
6231+
6232+
6233+ HB3144 Enrolled - 174 - LRB103 26309 HLH 52670 b
6234+
6235+
6236+HB3144 Enrolled- 175 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 175 - LRB103 26309 HLH 52670 b
6237+ HB3144 Enrolled - 175 - LRB103 26309 HLH 52670 b
6238+1 The tax imposed may not become effective before the first day
6239+2 of the month following the passage of the ordinance imposing
6240+3 the tax and receipt of a certified copy of the ordinance by the
6241+4 Department of Revenue. The Department of Revenue shall collect
6242+5 the tax for the Authority in accordance with Sections 3-2002
6243+6 and 3-2003 of the Illinois Vehicle Code.
6244+7 The Department shall immediately pay over to the State
6245+8 Treasurer, ex officio, as trustee, all taxes collected
6246+9 hereunder.
6247+10 As soon as possible after the first day of each month,
6248+11 beginning January 1, 2011, upon certification of the
6249+12 Department of Revenue, the Comptroller shall order
6250+13 transferred, and the Treasurer shall transfer, to the STAR
6251+14 Bonds Revenue Fund the local sales tax increment, as defined
6252+15 in the Innovation Development and Economy Act, collected under
6253+16 this Section during the second preceding calendar month for
6254+17 sales within a STAR bond district.
6255+18 After the monthly transfer to the STAR Bonds Revenue Fund,
6256+19 on or before the 25th day of each calendar month, the
6257+20 Department shall prepare and certify to the Comptroller the
6258+21 disbursement of stated sums of money to the Authority. The
6259+22 amount to be paid to the Authority shall be the amount
6260+23 collected hereunder during the second preceding calendar month
6261+24 by the Department, less any amount determined by the
6262+25 Department to be necessary for the payment of refunds, and
6263+26 less any amounts that are transferred to the STAR Bonds
6264+
6265+
6266+
6267+
6268+
6269+ HB3144 Enrolled - 175 - LRB103 26309 HLH 52670 b
6270+
6271+
6272+HB3144 Enrolled- 176 -LRB103 26309 HLH 52670 b HB3144 Enrolled - 176 - LRB103 26309 HLH 52670 b
6273+ HB3144 Enrolled - 176 - LRB103 26309 HLH 52670 b
6274+1 Revenue Fund. Within 10 days after receipt by the Comptroller
6275+2 of the disbursement certification to the Authority provided
6276+3 for in this Section to be given to the Comptroller by the
6277+4 Department, the Comptroller shall cause the orders to be drawn
6278+5 for that amount in accordance with the directions contained in
6279+6 the certification.
6280+7 (i) The Board may not impose any other taxes except as it
6281+8 may from time to time be authorized by law to impose.
6282+9 (j) A certificate of registration issued by the State
6283+10 Department of Revenue to a retailer under the Retailers'
6284+11 Occupation Tax Act or under the Service Occupation Tax Act
6285+12 shall permit the registrant to engage in a business that is
6286+13 taxed under the tax imposed under paragraphs (b), (e), (f) or
6287+14 (g) of this Section and no additional registration shall be
6288+15 required under the tax. A certificate issued under the Use Tax
6289+16 Act or the Service Use Tax Act shall be applicable with regard
6290+17 to any tax imposed under paragraph (c) of this Section.
6291+18 (k) The provisions of any tax imposed under paragraph (c)
6292+19 of this Section shall conform as closely as may be practicable
6293+20 to the provisions of the Use Tax Act, including without
6294+21 limitation conformity as to penalties with respect to the tax
6295+22 imposed and as to the powers of the State Department of Revenue
6296+23 to promulgate and enforce rules and regulations relating to
6297+24 the administration and enforcement of the provisions of the
6298+25 tax imposed. The taxes shall be imposed only on use within the
6299+26 metropolitan region and at rates as provided in the paragraph.
6300+
6301+
6302+
6303+
6304+
6305+ HB3144 Enrolled - 176 - LRB103 26309 HLH 52670 b
6306+
6307+
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6309+ HB3144 Enrolled - 177 - LRB103 26309 HLH 52670 b
6310+1 (l) The Board in imposing any tax as provided in
6311+2 paragraphs (b) and (c) of this Section, shall, after seeking
6312+3 the advice of the State Department of Revenue, provide means
6313+4 for retailers, users or purchasers of motor fuel for purposes
6314+5 other than those with regard to which the taxes may be imposed
6315+6 as provided in those paragraphs to receive refunds of taxes
6316+7 improperly paid, which provisions may be at variance with the
6317+8 refund provisions as applicable under the Municipal Retailers
6318+9 Occupation Tax Act. The State Department of Revenue may
6319+10 provide for certificates of registration for users or
6320+11 purchasers of motor fuel for purposes other than those with
6321+12 regard to which taxes may be imposed as provided in paragraphs
6322+13 (b) and (c) of this Section to facilitate the reporting and
6323+14 nontaxability of the exempt sales or uses.
6324+15 (m) Any ordinance imposing or discontinuing any tax under
6325+16 this Section shall be adopted and a certified copy thereof
6326+17 filed with the Department on or before June 1, whereupon the
6327+18 Department of Revenue shall proceed to administer and enforce
6328+19 this Section on behalf of the Regional Transportation
6329+20 Authority as of September 1 next following such adoption and
6330+21 filing. Beginning January 1, 1992, an ordinance or resolution
6331+22 imposing or discontinuing the tax hereunder shall be adopted
6332+23 and a certified copy thereof filed with the Department on or
6333+24 before the first day of July, whereupon the Department shall
6334+25 proceed to administer and enforce this Section as of the first
6335+26 day of October next following such adoption and filing.
6336+
6337+
6338+
6339+
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6341+ HB3144 Enrolled - 177 - LRB103 26309 HLH 52670 b
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6343+
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6345+ HB3144 Enrolled - 178 - LRB103 26309 HLH 52670 b
6346+1 Beginning January 1, 1993, an ordinance or resolution
6347+2 imposing, increasing, decreasing, or discontinuing the tax
6348+3 hereunder shall be adopted and a certified copy thereof filed
6349+4 with the Department, whereupon the Department shall proceed to
6350+5 administer and enforce this Section as of the first day of the
6351+6 first month to occur not less than 60 days following such
6352+7 adoption and filing. Any ordinance or resolution of the
6353+8 Authority imposing a tax under this Section and in effect on
6354+9 August 1, 2007 shall remain in full force and effect and shall
6355+10 be administered by the Department of Revenue under the terms
6356+11 and conditions and rates of tax established by such ordinance
6357+12 or resolution until the Department begins administering and
6358+13 enforcing an increased tax under this Section as authorized by
6359+14 Public Act 95-708. The tax rates authorized by Public Act
6360+15 95-708 are effective only if imposed by ordinance of the
6361+16 Authority.
6362+17 (n) Except as otherwise provided in this subsection (n),
6363+18 the State Department of Revenue shall, upon collecting any
6364+19 taxes as provided in this Section, pay the taxes over to the
6365+20 State Treasurer as trustee for the Authority. The taxes shall
6366+21 be held in a trust fund outside the State Treasury. If an
6367+22 airport-related purpose has been certified, taxes and
6368+23 penalties collected in DuPage, Kane, Lake, McHenry and Will
6369+24 counties on aviation fuel sold on or after December 1, 2019
6370+25 from the 0.50% of the 0.75% rate shall be immediately paid over
6371+26 by the Department to the State Treasurer, ex officio, as
6372+
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6374+
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6381+ HB3144 Enrolled - 179 - LRB103 26309 HLH 52670 b
6382+1 trustee, for deposit into the Local Government Aviation Trust
6383+2 Fund. The Department shall only pay moneys into the Local
6384+3 Government Aviation Trust Fund under this Act for so long as
6385+4 the revenue use requirements of 49 U.S.C. 47107(b) and 49
6386+5 U.S.C. 47133 are binding on the Authority. On or before the
6387+6 25th day of each calendar month, the State Department of
6388+7 Revenue shall prepare and certify to the Comptroller of the
6389+8 State of Illinois and to the Authority (i) the amount of taxes
6390+9 collected in each county other than Cook County in the
6391+10 metropolitan region, (not including, if an airport-related
6392+11 purpose has been certified, the taxes and penalties collected
6393+12 from the 0.50% of the 0.75% rate on aviation fuel sold on or
6394+13 after December 1, 2019 that are deposited into the Local
6395+14 Government Aviation Trust Fund) (ii) the amount of taxes
6396+15 collected within the City of Chicago, and (iii) the amount
6397+16 collected in that portion of Cook County outside of Chicago,
6398+17 each amount less the amount necessary for the payment of
6399+18 refunds to taxpayers located in those areas described in items
6400+19 (i), (ii), and (iii), and less 1.5% of the remainder, which
6401+20 shall be transferred from the trust fund into the Tax
6402+21 Compliance and Administration Fund. The Department, at the
6403+22 time of each monthly disbursement to the Authority, shall
6404+23 prepare and certify to the State Comptroller the amount to be
6405+24 transferred into the Tax Compliance and Administration Fund
6406+25 under this subsection. Within 10 days after receipt by the
6407+26 Comptroller of the certification of the amounts, the
6408+
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6417+ HB3144 Enrolled - 180 - LRB103 26309 HLH 52670 b
6418+1 Comptroller shall cause an order to be drawn for the transfer
6419+2 of the amount certified into the Tax Compliance and
6420+3 Administration Fund and the payment of two-thirds of the
6421+4 amounts certified in item (i) of this subsection to the
6422+5 Authority and one-third of the amounts certified in item (i)
6423+6 of this subsection to the respective counties other than Cook
6424+7 County and the amount certified in items (ii) and (iii) of this
6425+8 subsection to the Authority.
6426+9 In addition to the disbursement required by the preceding
6427+10 paragraph, an allocation shall be made in July 1991 and each
6428+11 year thereafter to the Regional Transportation Authority. The
6429+12 allocation shall be made in an amount equal to the average
6430+13 monthly distribution during the preceding calendar year
6431+14 (excluding the 2 months of lowest receipts) and the allocation
6432+15 shall include the amount of average monthly distribution from
6433+16 the Regional Transportation Authority Occupation and Use Tax
6434+17 Replacement Fund. The distribution made in July 1992 and each
6435+18 year thereafter under this paragraph and the preceding
6436+19 paragraph shall be reduced by the amount allocated and
6437+20 disbursed under this paragraph in the preceding calendar year.
6438+21 The Department of Revenue shall prepare and certify to the
6439+22 Comptroller for disbursement the allocations made in
6440+23 accordance with this paragraph.
6441+24 (o) Failure to adopt a budget ordinance or otherwise to
6442+25 comply with Section 4.01 of this Act or to adopt a Five-year
6443+26 Capital Program or otherwise to comply with paragraph (b) of
6444+
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6453+ HB3144 Enrolled - 181 - LRB103 26309 HLH 52670 b
6454+1 Section 2.01 of this Act shall not affect the validity of any
6455+2 tax imposed by the Authority otherwise in conformity with law.
6456+3 (p) At no time shall a public transportation tax or motor
6457+4 vehicle parking tax authorized under paragraphs (b), (c), and
6458+5 (d) of this Section be in effect at the same time as any
6459+6 retailers' occupation, use or service occupation tax
6460+7 authorized under paragraphs (e), (f), and (g) of this Section
6461+8 is in effect.
6462+9 Any taxes imposed under the authority provided in
6463+10 paragraphs (b), (c), and (d) shall remain in effect only until
6464+11 the time as any tax authorized by paragraph (e), (f), or (g) of
6465+12 this Section are imposed and becomes effective. Once any tax
6466+13 authorized by paragraph (e), (f), or (g) is imposed the Board
6467+14 may not reimpose taxes as authorized in paragraphs (b), (c),
6468+15 and (d) of the Section unless any tax authorized by paragraph
6469+16 (e), (f), or (g) of this Section becomes ineffective by means
6470+17 other than an ordinance of the Board.
6471+18 (q) Any existing rights, remedies and obligations
6472+19 (including enforcement by the Regional Transportation
6473+20 Authority) arising under any tax imposed under paragraph (b),
6474+21 (c), or (d) of this Section shall not be affected by the
6475+22 imposition of a tax under paragraph (e), (f), or (g) of this
6476+23 Section.
6477+24 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
6478+25 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
6479+26 Section 99. Effective date. This Act takes effect upon
6480+
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