Illinois 2023-2024 Regular Session

Illinois House Bill HB3434 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3434 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: See Index Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that if an in-State retailer or serviceman bids on a purchase order or contract to provide materials, equipment, or supplies to a municipality with a population under 1,000,000, and that purchase order or contract involves an amount in excess of $25,000, then the municipality may apply to the Department of Revenue for a certificate of exemption from the taxes imposed under specified local provisions of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act for the in-State retailer or serviceman, or a third-party supplier of the retailer or serviceman, with respect to the materials, equipment, or supplies covered by the bid if: at least one other bid is received from an out-of-State retailer or serviceman; the in-State retailer or serviceman demonstrates the necessity of the exemption in order to submit the lowest responsible bid, including substantive proof furnished by the retailer or serviceman to the municipality or the Department of Revenue; and the in-State retailer provides an itemized estimate of cost to the corporate authorities of the municipality. Defines terms. Makes confirming changes in the following Acts and Codes: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Salem Civic Center Law of 1997 of the Civic Center Code, the Metropolitan Pier and Exposition Authority Act, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Effective immediately. LRB103 28571 HLH 54952 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3434 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: See Index See Index Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that if an in-State retailer or serviceman bids on a purchase order or contract to provide materials, equipment, or supplies to a municipality with a population under 1,000,000, and that purchase order or contract involves an amount in excess of $25,000, then the municipality may apply to the Department of Revenue for a certificate of exemption from the taxes imposed under specified local provisions of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act for the in-State retailer or serviceman, or a third-party supplier of the retailer or serviceman, with respect to the materials, equipment, or supplies covered by the bid if: at least one other bid is received from an out-of-State retailer or serviceman; the in-State retailer or serviceman demonstrates the necessity of the exemption in order to submit the lowest responsible bid, including substantive proof furnished by the retailer or serviceman to the municipality or the Department of Revenue; and the in-State retailer provides an itemized estimate of cost to the corporate authorities of the municipality. Defines terms. Makes confirming changes in the following Acts and Codes: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Salem Civic Center Law of 1997 of the Civic Center Code, the Metropolitan Pier and Exposition Authority Act, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Effective immediately. LRB103 28571 HLH 54952 b LRB103 28571 HLH 54952 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3434 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that if an in-State retailer or serviceman bids on a purchase order or contract to provide materials, equipment, or supplies to a municipality with a population under 1,000,000, and that purchase order or contract involves an amount in excess of $25,000, then the municipality may apply to the Department of Revenue for a certificate of exemption from the taxes imposed under specified local provisions of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act for the in-State retailer or serviceman, or a third-party supplier of the retailer or serviceman, with respect to the materials, equipment, or supplies covered by the bid if: at least one other bid is received from an out-of-State retailer or serviceman; the in-State retailer or serviceman demonstrates the necessity of the exemption in order to submit the lowest responsible bid, including substantive proof furnished by the retailer or serviceman to the municipality or the Department of Revenue; and the in-State retailer provides an itemized estimate of cost to the corporate authorities of the municipality. Defines terms. Makes confirming changes in the following Acts and Codes: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Salem Civic Center Law of 1997 of the Civic Center Code, the Metropolitan Pier and Exposition Authority Act, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Effective immediately.
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8	8	A BILL FOR
9	9	HB3434LRB103 28571 HLH 54952 b HB3434 LRB103 28571 HLH 54952 b
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11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Department of Revenue Law of the Civil
15	15	5 Administrative Code of Illinois is amended by adding Section
16	16	6 2505-810 as follows:
17	17	7 (20 ILCS 2505/2505-810 new)
18	18	8 Sec. 2505-810. Exemption for materials, equipment, or
19	19	9 supplies of a bid.
20	20	10 (a) As used in this Section:
21	21	11 "In-State retailer or serviceman" means a retailer or
22	22	12 serviceman with a principal place of business located in the
23	23	13 State.
24	24	14 "Local provisions of the Use Tax Act, the Service Use Tax
25	25	15 Act, the Service Occupation Tax Act, and the Retailers'
26	26	16 Occupation Tax Act" means use taxes or occupation taxes
27	27	17 imposed under the Counties Code, the Illinois Municipal Code,
28	28	18 the Salem Civic Center Law of 1997 of the Civic Center Code,
29	29	19 the Metropolitan Pier and Exposition Authority Act, the Flood
30	30	20 Prevention District Act, the Metro-East Park and Recreation
31	31	21 District Act, the Local Mass Transit District Act, the
32	32	22 Regional Transportation Authority Act, and the Water
33	33	23 Commission Act of 1985.
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3434 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that if an in-State retailer or serviceman bids on a purchase order or contract to provide materials, equipment, or supplies to a municipality with a population under 1,000,000, and that purchase order or contract involves an amount in excess of $25,000, then the municipality may apply to the Department of Revenue for a certificate of exemption from the taxes imposed under specified local provisions of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act for the in-State retailer or serviceman, or a third-party supplier of the retailer or serviceman, with respect to the materials, equipment, or supplies covered by the bid if: at least one other bid is received from an out-of-State retailer or serviceman; the in-State retailer or serviceman demonstrates the necessity of the exemption in order to submit the lowest responsible bid, including substantive proof furnished by the retailer or serviceman to the municipality or the Department of Revenue; and the in-State retailer provides an itemized estimate of cost to the corporate authorities of the municipality. Defines terms. Makes confirming changes in the following Acts and Codes: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Salem Civic Center Law of 1997 of the Civic Center Code, the Metropolitan Pier and Exposition Authority Act, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Effective immediately.
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43	43	A BILL FOR
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49	49	See Index
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68	68	1 "Out-of-State retailer or serviceman" means a retailer or
69	69	2 serviceman with a principal place of business located outside
70	70	3 of the State.
71	71	4 (b) If an in-State retailer or serviceman bids on a
72	72	5 purchase order or contract to provide materials, equipment, or
73	73	6 supplies to a municipality with a population of less than
74	74	7 1,000,000, and that purchase order or contract involves an
75	75	8 amount in excess of $25,000, then the municipality may apply
76	76	9 to the Department of Revenue for a certificate of exemption
77	77	10 from the taxes imposed under local provisions of the Use Tax
78	78	11 Act, the Service Use Tax Act, the Service Occupation Tax Act,
79	79	12 and the Retailers' Occupation Tax Act for the in-State
80	80	13 retailer or serviceman, or a third-party supplier of the
81	81	14 in-State retailer or serviceman, with respect to the
82	82	15 materials, equipment, or supplies covered by the bid if all of
83	83	16 the following conditions apply:
84	84	17 (1) at least one other bid is received from an
85	85	18 out-of-State retailer or serviceman;
86	86	19 (2) the in-State retailer or serviceman demonstrates
87	87	20 the necessity of the exemption in order to submit the
88	88	21 lowest responsible bid under the guidelines provided under
89	89	22 Division 9 or 10 of Article 8 of the Illinois Municipal
90	90	23 Code, including substantive proof furnished by the
91	91	24 retailer or serviceman to the municipality or the
92	92	25 Department of Revenue; and
93	93	26 (3) the in-State retailer provides an itemized
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104	104	1 estimate of cost to the corporate authorities of the
105	105	2 municipality.
106	106	3 Section 10. The Use Tax Act is amended by changing Section
107	107	4 3-5 as follows:
108	108	5 (35 ILCS 105/3-5)
109	109	6 Sec. 3-5. Exemptions. Use of the following tangible
110	110	7 personal property is exempt from the tax imposed by this Act:
111	111	8 (1) Personal property purchased from a corporation,
112	112	9 society, association, foundation, institution, or
113	113	10 organization, other than a limited liability company, that is
114	114	11 organized and operated as a not-for-profit service enterprise
115	115	12 for the benefit of persons 65 years of age or older if the
116	116	13 personal property was not purchased by the enterprise for the
117	117	14 purpose of resale by the enterprise.
118	118	15 (2) Personal property purchased by a not-for-profit
119	119	16 Illinois county fair association for use in conducting,
120	120	17 operating, or promoting the county fair.
121	121	18 (3) Personal property purchased by a not-for-profit arts
122	122	19 or cultural organization that establishes, by proof required
123	123	20 by the Department by rule, that it has received an exemption
124	124	21 under Section 501(c)(3) of the Internal Revenue Code and that
125	125	22 is organized and operated primarily for the presentation or
126	126	23 support of arts or cultural programming, activities, or
127	127	24 services. These organizations include, but are not limited to,
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138	138	1 music and dramatic arts organizations such as symphony
139	139	2 orchestras and theatrical groups, arts and cultural service
140	140	3 organizations, local arts councils, visual arts organizations,
141	141	4 and media arts organizations. On and after July 1, 2001 (the
142	142	5 effective date of Public Act 92-35), however, an entity
143	143	6 otherwise eligible for this exemption shall not make tax-free
144	144	7 purchases unless it has an active identification number issued
145	145	8 by the Department.
146	146	9 (4) Personal property purchased by a governmental body, by
147	147	10 a corporation, society, association, foundation, or
148	148	11 institution organized and operated exclusively for charitable,
149	149	12 religious, or educational purposes, or by a not-for-profit
150	150	13 corporation, society, association, foundation, institution, or
151	151	14 organization that has no compensated officers or employees and
152	152	15 that is organized and operated primarily for the recreation of
153	153	16 persons 55 years of age or older. A limited liability company
154	154	17 may qualify for the exemption under this paragraph only if the
155	155	18 limited liability company is organized and operated
156	156	19 exclusively for educational purposes. On and after July 1,
157	157	20 1987, however, no entity otherwise eligible for this exemption
158	158	21 shall make tax-free purchases unless it has an active
159	159	22 exemption identification number issued by the Department.
160	160	23 (5) Until July 1, 2003, a passenger car that is a
161	161	24 replacement vehicle to the extent that the purchase price of
162	162	25 the car is subject to the Replacement Vehicle Tax.
163	163	26 (6) Until July 1, 2003 and beginning again on September 1,
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174	174	1 2004 through August 30, 2014, graphic arts machinery and
175	175	2 equipment, including repair and replacement parts, both new
176	176	3 and used, and including that manufactured on special order,
177	177	4 certified by the purchaser to be used primarily for graphic
178	178	5 arts production, and including machinery and equipment
179	179	6 purchased for lease. Equipment includes chemicals or chemicals
180	180	7 acting as catalysts but only if the chemicals or chemicals
181	181	8 acting as catalysts effect a direct and immediate change upon
182	182	9 a graphic arts product. Beginning on July 1, 2017, graphic
183	183	10 arts machinery and equipment is included in the manufacturing
184	184	11 and assembling machinery and equipment exemption under
185	185	12 paragraph (18).
186	186	13 (7) Farm chemicals.
187	187	14 (8) Legal tender, currency, medallions, or gold or silver
188	188	15 coinage issued by the State of Illinois, the government of the
189	189	16 United States of America, or the government of any foreign
190	190	17 country, and bullion.
191	191	18 (9) Personal property purchased from a teacher-sponsored
192	192	19 student organization affiliated with an elementary or
193	193	20 secondary school located in Illinois.
194	194	21 (10) A motor vehicle that is used for automobile renting,
195	195	22 as defined in the Automobile Renting Occupation and Use Tax
196	196	23 Act.
197	197	24 (11) Farm machinery and equipment, both new and used,
198	198	25 including that manufactured on special order, certified by the
199	199	26 purchaser to be used primarily for production agriculture or
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210	210	1 State or federal agricultural programs, including individual
211	211	2 replacement parts for the machinery and equipment, including
212	212	3 machinery and equipment purchased for lease, and including
213	213	4 implements of husbandry defined in Section 1-130 of the
214	214	5 Illinois Vehicle Code, farm machinery and agricultural
215	215	6 chemical and fertilizer spreaders, and nurse wagons required
216	216	7 to be registered under Section 3-809 of the Illinois Vehicle
217	217	8 Code, but excluding other motor vehicles required to be
218	218	9 registered under the Illinois Vehicle Code. Horticultural
219	219	10 polyhouses or hoop houses used for propagating, growing, or
220	220	11 overwintering plants shall be considered farm machinery and
221	221	12 equipment under this item (11). Agricultural chemical tender
222	222	13 tanks and dry boxes shall include units sold separately from a
223	223	14 motor vehicle required to be licensed and units sold mounted
224	224	15 on a motor vehicle required to be licensed if the selling price
225	225	16 of the tender is separately stated.
226	226	17 Farm machinery and equipment shall include precision
227	227	18 farming equipment that is installed or purchased to be
228	228	19 installed on farm machinery and equipment including, but not
229	229	20 limited to, tractors, harvesters, sprayers, planters, seeders,
230	230	21 or spreaders. Precision farming equipment includes, but is not
231	231	22 limited to, soil testing sensors, computers, monitors,
232	232	23 software, global positioning and mapping systems, and other
233	233	24 such equipment.
234	234	25 Farm machinery and equipment also includes computers,
235	235	26 sensors, software, and related equipment used primarily in the
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246	246	1 computer-assisted operation of production agriculture
247	247	2 facilities, equipment, and activities such as, but not limited
248	248	3 to, the collection, monitoring, and correlation of animal and
249	249	4 crop data for the purpose of formulating animal diets and
250	250	5 agricultural chemicals. This item (11) is exempt from the
251	251	6 provisions of Section 3-90.
252	252	7 (12) Until June 30, 2013, fuel and petroleum products sold
253	253	8 to or used by an air common carrier, certified by the carrier
254	254	9 to be used for consumption, shipment, or storage in the
255	255	10 conduct of its business as an air common carrier, for a flight
256	256	11 destined for or returning from a location or locations outside
257	257	12 the United States without regard to previous or subsequent
258	258	13 domestic stopovers.
259	259	14 Beginning July 1, 2013, fuel and petroleum products sold
260	260	15 to or used by an air carrier, certified by the carrier to be
261	261	16 used for consumption, shipment, or storage in the conduct of
262	262	17 its business as an air common carrier, for a flight that (i) is
263	263	18 engaged in foreign trade or is engaged in trade between the
264	264	19 United States and any of its possessions and (ii) transports
265	265	20 at least one individual or package for hire from the city of
266	266	21 origination to the city of final destination on the same
267	267	22 aircraft, without regard to a change in the flight number of
268	268	23 that aircraft.
269	269	24 (13) Proceeds of mandatory service charges separately
270	270	25 stated on customers' bills for the purchase and consumption of
271	271	26 food and beverages purchased at retail from a retailer, to the
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282	282	1 extent that the proceeds of the service charge are in fact
283	283	2 turned over as tips or as a substitute for tips to the
284	284	3 employees who participate directly in preparing, serving,
285	285	4 hosting or cleaning up the food or beverage function with
286	286	5 respect to which the service charge is imposed.
287	287	6 (14) Until July 1, 2003, oil field exploration, drilling,
288	288	7 and production equipment, including (i) rigs and parts of
289	289	8 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
290	290	9 pipe and tubular goods, including casing and drill strings,
291	291	10 (iii) pumps and pump-jack units, (iv) storage tanks and flow
292	292	11 lines, (v) any individual replacement part for oil field
293	293	12 exploration, drilling, and production equipment, and (vi)
294	294	13 machinery and equipment purchased for lease; but excluding
295	295	14 motor vehicles required to be registered under the Illinois
296	296	15 Vehicle Code.
297	297	16 (15) Photoprocessing machinery and equipment, including
298	298	17 repair and replacement parts, both new and used, including
299	299	18 that manufactured on special order, certified by the purchaser
300	300	19 to be used primarily for photoprocessing, and including
301	301	20 photoprocessing machinery and equipment purchased for lease.
302	302	21 (16) Until July 1, 2028, coal and aggregate exploration,
303	303	22 mining, off-highway hauling, processing, maintenance, and
304	304	23 reclamation equipment, including replacement parts and
305	305	24 equipment, and including equipment purchased for lease, but
306	306	25 excluding motor vehicles required to be registered under the
307	307	26 Illinois Vehicle Code. The changes made to this Section by
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318	318	1 Public Act 97-767 apply on and after July 1, 2003, but no claim
319	319	2 for credit or refund is allowed on or after August 16, 2013
320	320	3 (the effective date of Public Act 98-456) for such taxes paid
321	321	4 during the period beginning July 1, 2003 and ending on August
322	322	5 16, 2013 (the effective date of Public Act 98-456).
323	323	6 (17) Until July 1, 2003, distillation machinery and
324	324	7 equipment, sold as a unit or kit, assembled or installed by the
325	325	8 retailer, certified by the user to be used only for the
326	326	9 production of ethyl alcohol that will be used for consumption
327	327	10 as motor fuel or as a component of motor fuel for the personal
328	328	11 use of the user, and not subject to sale or resale.
329	329	12 (18) Manufacturing and assembling machinery and equipment
330	330	13 used primarily in the process of manufacturing or assembling
331	331	14 tangible personal property for wholesale or retail sale or
332	332	15 lease, whether that sale or lease is made directly by the
333	333	16 manufacturer or by some other person, whether the materials
334	334	17 used in the process are owned by the manufacturer or some other
335	335	18 person, or whether that sale or lease is made apart from or as
336	336	19 an incident to the seller's engaging in the service occupation
337	337	20 of producing machines, tools, dies, jigs, patterns, gauges, or
338	338	21 other similar items of no commercial value on special order
339	339	22 for a particular purchaser. The exemption provided by this
340	340	23 paragraph (18) includes production related tangible personal
341	341	24 property, as defined in Section 3-50, purchased on or after
342	342	25 July 1, 2019. The exemption provided by this paragraph (18)
343	343	26 does not include machinery and equipment used in (i) the
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354	354	1 generation of electricity for wholesale or retail sale; (ii)
355	355	2 the generation or treatment of natural or artificial gas for
356	356	3 wholesale or retail sale that is delivered to customers
357	357	4 through pipes, pipelines, or mains; or (iii) the treatment of
358	358	5 water for wholesale or retail sale that is delivered to
359	359	6 customers through pipes, pipelines, or mains. The provisions
360	360	7 of Public Act 98-583 are declaratory of existing law as to the
361	361	8 meaning and scope of this exemption. Beginning on July 1,
362	362	9 2017, the exemption provided by this paragraph (18) includes,
363	363	10 but is not limited to, graphic arts machinery and equipment,
364	364	11 as defined in paragraph (6) of this Section.
365	365	12 (19) Personal property delivered to a purchaser or
366	366	13 purchaser's donee inside Illinois when the purchase order for
367	367	14 that personal property was received by a florist located
368	368	15 outside Illinois who has a florist located inside Illinois
369	369	16 deliver the personal property.
370	370	17 (20) Semen used for artificial insemination of livestock
371	371	18 for direct agricultural production.
372	372	19 (21) Horses, or interests in horses, registered with and
373	373	20 meeting the requirements of any of the Arabian Horse Club
374	374	21 Registry of America, Appaloosa Horse Club, American Quarter
375	375	22 Horse Association, United States Trotting Association, or
376	376	23 Jockey Club, as appropriate, used for purposes of breeding or
377	377	24 racing for prizes. This item (21) is exempt from the
378	378	25 provisions of Section 3-90, and the exemption provided for
379	379	26 under this item (21) applies for all periods beginning May 30,
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390	390	1 1995, but no claim for credit or refund is allowed on or after
391	391	2 January 1, 2008 for such taxes paid during the period
392	392	3 beginning May 30, 2000 and ending on January 1, 2008.
393	393	4 (22) Computers and communications equipment utilized for
394	394	5 any hospital purpose and equipment used in the diagnosis,
395	395	6 analysis, or treatment of hospital patients purchased by a
396	396	7 lessor who leases the equipment, under a lease of one year or
397	397	8 longer executed or in effect at the time the lessor would
398	398	9 otherwise be subject to the tax imposed by this Act, to a
399	399	10 hospital that has been issued an active tax exemption
400	400	11 identification number by the Department under Section 1g of
401	401	12 the Retailers' Occupation Tax Act. If the equipment is leased
402	402	13 in a manner that does not qualify for this exemption or is used
403	403	14 in any other non-exempt manner, the lessor shall be liable for
404	404	15 the tax imposed under this Act or the Service Use Tax Act, as
405	405	16 the case may be, based on the fair market value of the property
406	406	17 at the time the non-qualifying use occurs. No lessor shall
407	407	18 collect or attempt to collect an amount (however designated)
408	408	19 that purports to reimburse that lessor for the tax imposed by
409	409	20 this Act or the Service Use Tax Act, as the case may be, if the
410	410	21 tax has not been paid by the lessor. If a lessor improperly
411	411	22 collects any such amount from the lessee, the lessee shall
412	412	23 have a legal right to claim a refund of that amount from the
413	413	24 lessor. If, however, that amount is not refunded to the lessee
414	414	25 for any reason, the lessor is liable to pay that amount to the
415	415	26 Department.
416	416
417	417
418	418
419	419
420	420
421	421	HB3434 - 11 - LRB103 28571 HLH 54952 b
422	422
423	423
424	424	HB3434- 12 -LRB103 28571 HLH 54952 b HB3434 - 12 - LRB103 28571 HLH 54952 b
425	425	HB3434 - 12 - LRB103 28571 HLH 54952 b
426	426	1 (23) Personal property purchased by a lessor who leases
427	427	2 the property, under a lease of one year or longer executed or
428	428	3 in effect at the time the lessor would otherwise be subject to
429	429	4 the tax imposed by this Act, to a governmental body that has
430	430	5 been issued an active sales tax exemption identification
431	431	6 number by the Department under Section 1g of the Retailers'
432	432	7 Occupation Tax Act. If the property is leased in a manner that
433	433	8 does not qualify for this exemption or used in any other
434	434	9 non-exempt manner, the lessor shall be liable for the tax
435	435	10 imposed under this Act or the Service Use Tax Act, as the case
436	436	11 may be, based on the fair market value of the property at the
437	437	12 time the non-qualifying use occurs. No lessor shall collect or
438	438	13 attempt to collect an amount (however designated) that
439	439	14 purports to reimburse that lessor for the tax imposed by this
440	440	15 Act or the Service Use Tax Act, as the case may be, if the tax
441	441	16 has not been paid by the lessor. If a lessor improperly
442	442	17 collects any such amount from the lessee, the lessee shall
443	443	18 have a legal right to claim a refund of that amount from the
444	444	19 lessor. If, however, that amount is not refunded to the lessee
445	445	20 for any reason, the lessor is liable to pay that amount to the
446	446	21 Department.
447	447	22 (24) Beginning with taxable years ending on or after
448	448	23 December 31, 1995 and ending with taxable years ending on or
449	449	24 before December 31, 2004, personal property that is donated
450	450	25 for disaster relief to be used in a State or federally declared
451	451	26 disaster area in Illinois or bordering Illinois by a
452	452
453	453
454	454
455	455
456	456
457	457	HB3434 - 12 - LRB103 28571 HLH 54952 b
458	458
459	459
460	460	HB3434- 13 -LRB103 28571 HLH 54952 b HB3434 - 13 - LRB103 28571 HLH 54952 b
461	461	HB3434 - 13 - LRB103 28571 HLH 54952 b
462	462	1 manufacturer or retailer that is registered in this State to a
463	463	2 corporation, society, association, foundation, or institution
464	464	3 that has been issued a sales tax exemption identification
465	465	4 number by the Department that assists victims of the disaster
466	466	5 who reside within the declared disaster area.
467	467	6 (25) Beginning with taxable years ending on or after
468	468	7 December 31, 1995 and ending with taxable years ending on or
469	469	8 before December 31, 2004, personal property that is used in
470	470	9 the performance of infrastructure repairs in this State,
471	471	10 including but not limited to municipal roads and streets,
472	472	11 access roads, bridges, sidewalks, waste disposal systems,
473	473	12 water and sewer line extensions, water distribution and
474	474	13 purification facilities, storm water drainage and retention
475	475	14 facilities, and sewage treatment facilities, resulting from a
476	476	15 State or federally declared disaster in Illinois or bordering
477	477	16 Illinois when such repairs are initiated on facilities located
478	478	17 in the declared disaster area within 6 months after the
479	479	18 disaster.
480	480	19 (26) Beginning July 1, 1999, game or game birds purchased
481	481	20 at a "game breeding and hunting preserve area" as that term is
482	482	21 used in the Wildlife Code. This paragraph is exempt from the
483	483	22 provisions of Section 3-90.
484	484	23 (27) A motor vehicle, as that term is defined in Section
485	485	24 1-146 of the Illinois Vehicle Code, that is donated to a
486	486	25 corporation, limited liability company, society, association,
487	487	26 foundation, or institution that is determined by the
488	488
489	489
490	490
491	491
492	492
493	493	HB3434 - 13 - LRB103 28571 HLH 54952 b
494	494
495	495
496	496	HB3434- 14 -LRB103 28571 HLH 54952 b HB3434 - 14 - LRB103 28571 HLH 54952 b
497	497	HB3434 - 14 - LRB103 28571 HLH 54952 b
498	498	1 Department to be organized and operated exclusively for
499	499	2 educational purposes. For purposes of this exemption, "a
500	500	3 corporation, limited liability company, society, association,
501	501	4 foundation, or institution organized and operated exclusively
502	502	5 for educational purposes" means all tax-supported public
503	503	6 schools, private schools that offer systematic instruction in
504	504	7 useful branches of learning by methods common to public
505	505	8 schools and that compare favorably in their scope and
506	506	9 intensity with the course of study presented in tax-supported
507	507	10 schools, and vocational or technical schools or institutes
508	508	11 organized and operated exclusively to provide a course of
509	509	12 study of not less than 6 weeks duration and designed to prepare
510	510	13 individuals to follow a trade or to pursue a manual,
511	511	14 technical, mechanical, industrial, business, or commercial
512	512	15 occupation.
513	513	16 (28) Beginning January 1, 2000, personal property,
514	514	17 including food, purchased through fundraising events for the
515	515	18 benefit of a public or private elementary or secondary school,
516	516	19 a group of those schools, or one or more school districts if
517	517	20 the events are sponsored by an entity recognized by the school
518	518	21 district that consists primarily of volunteers and includes
519	519	22 parents and teachers of the school children. This paragraph
520	520	23 does not apply to fundraising events (i) for the benefit of
521	521	24 private home instruction or (ii) for which the fundraising
522	522	25 entity purchases the personal property sold at the events from
523	523	26 another individual or entity that sold the property for the
524	524
525	525
526	526
527	527
528	528
529	529	HB3434 - 14 - LRB103 28571 HLH 54952 b
530	530
531	531
532	532	HB3434- 15 -LRB103 28571 HLH 54952 b HB3434 - 15 - LRB103 28571 HLH 54952 b
533	533	HB3434 - 15 - LRB103 28571 HLH 54952 b
534	534	1 purpose of resale by the fundraising entity and that profits
535	535	2 from the sale to the fundraising entity. This paragraph is
536	536	3 exempt from the provisions of Section 3-90.
537	537	4 (29) Beginning January 1, 2000 and through December 31,
538	538	5 2001, new or used automatic vending machines that prepare and
539	539	6 serve hot food and beverages, including coffee, soup, and
540	540	7 other items, and replacement parts for these machines.
541	541	8 Beginning January 1, 2002 and through June 30, 2003, machines
542	542	9 and parts for machines used in commercial, coin-operated
543	543	10 amusement and vending business if a use or occupation tax is
544	544	11 paid on the gross receipts derived from the use of the
545	545	12 commercial, coin-operated amusement and vending machines. This
546	546	13 paragraph is exempt from the provisions of Section 3-90.
547	547	14 (30) Beginning January 1, 2001 and through June 30, 2016,
548	548	15 food for human consumption that is to be consumed off the
549	549	16 premises where it is sold (other than alcoholic beverages,
550	550	17 soft drinks, and food that has been prepared for immediate
551	551	18 consumption) and prescription and nonprescription medicines,
552	552	19 drugs, medical appliances, and insulin, urine testing
553	553	20 materials, syringes, and needles used by diabetics, for human
554	554	21 use, when purchased for use by a person receiving medical
555	555	22 assistance under Article V of the Illinois Public Aid Code who
556	556	23 resides in a licensed long-term care facility, as defined in
557	557	24 the Nursing Home Care Act, or in a licensed facility as defined
558	558	25 in the ID/DD Community Care Act, the MC/DD Act, or the
559	559	26 Specialized Mental Health Rehabilitation Act of 2013.
560	560
561	561
562	562
563	563
564	564
565	565	HB3434 - 15 - LRB103 28571 HLH 54952 b
566	566
567	567
568	568	HB3434- 16 -LRB103 28571 HLH 54952 b HB3434 - 16 - LRB103 28571 HLH 54952 b
569	569	HB3434 - 16 - LRB103 28571 HLH 54952 b
570	570	1 (31) Beginning on August 2, 2001 (the effective date of
571	571	2 Public Act 92-227), computers and communications equipment
572	572	3 utilized for any hospital purpose and equipment used in the
573	573	4 diagnosis, analysis, or treatment of hospital patients
574	574	5 purchased by a lessor who leases the equipment, under a lease
575	575	6 of one year or longer executed or in effect at the time the
576	576	7 lessor would otherwise be subject to the tax imposed by this
577	577	8 Act, to a hospital that has been issued an active tax exemption
578	578	9 identification number by the Department under Section 1g of
579	579	10 the Retailers' Occupation Tax Act. If the equipment is leased
580	580	11 in a manner that does not qualify for this exemption or is used
581	581	12 in any other nonexempt manner, the lessor shall be liable for
582	582	13 the tax imposed under this Act or the Service Use Tax Act, as
583	583	14 the case may be, based on the fair market value of the property
584	584	15 at the time the nonqualifying use occurs. No lessor shall
585	585	16 collect or attempt to collect an amount (however designated)
586	586	17 that purports to reimburse that lessor for the tax imposed by
587	587	18 this Act or the Service Use Tax Act, as the case may be, if the
588	588	19 tax has not been paid by the lessor. If a lessor improperly
589	589	20 collects any such amount from the lessee, the lessee shall
590	590	21 have a legal right to claim a refund of that amount from the
591	591	22 lessor. If, however, that amount is not refunded to the lessee
592	592	23 for any reason, the lessor is liable to pay that amount to the
593	593	24 Department. This paragraph is exempt from the provisions of
594	594	25 Section 3-90.
595	595	26 (32) Beginning on August 2, 2001 (the effective date of
596	596
597	597
598	598
599	599
600	600
601	601	HB3434 - 16 - LRB103 28571 HLH 54952 b
602	602
603	603
604	604	HB3434- 17 -LRB103 28571 HLH 54952 b HB3434 - 17 - LRB103 28571 HLH 54952 b
605	605	HB3434 - 17 - LRB103 28571 HLH 54952 b
606	606	1 Public Act 92-227), personal property purchased by a lessor
607	607	2 who leases the property, under a lease of one year or longer
608	608	3 executed or in effect at the time the lessor would otherwise be
609	609	4 subject to the tax imposed by this Act, to a governmental body
610	610	5 that has been issued an active sales tax exemption
611	611	6 identification number by the Department under Section 1g of
612	612	7 the Retailers' Occupation Tax Act. If the property is leased
613	613	8 in a manner that does not qualify for this exemption or used in
614	614	9 any other nonexempt manner, the lessor shall be liable for the
615	615	10 tax imposed under this Act or the Service Use Tax Act, as the
616	616	11 case may be, based on the fair market value of the property at
617	617	12 the time the nonqualifying use occurs. No lessor shall collect
618	618	13 or attempt to collect an amount (however designated) that
619	619	14 purports to reimburse that lessor for the tax imposed by this
620	620	15 Act or the Service Use Tax Act, as the case may be, if the tax
621	621	16 has not been paid by the lessor. If a lessor improperly
622	622	17 collects any such amount from the lessee, the lessee shall
623	623	18 have a legal right to claim a refund of that amount from the
624	624	19 lessor. If, however, that amount is not refunded to the lessee
625	625	20 for any reason, the lessor is liable to pay that amount to the
626	626	21 Department. This paragraph is exempt from the provisions of
627	627	22 Section 3-90.
628	628	23 (33) On and after July 1, 2003 and through June 30, 2004,
629	629	24 the use in this State of motor vehicles of the second division
630	630	25 with a gross vehicle weight in excess of 8,000 pounds and that
631	631	26 are subject to the commercial distribution fee imposed under
632	632
633	633
634	634
635	635
636	636
637	637	HB3434 - 17 - LRB103 28571 HLH 54952 b
638	638
639	639
640	640	HB3434- 18 -LRB103 28571 HLH 54952 b HB3434 - 18 - LRB103 28571 HLH 54952 b
641	641	HB3434 - 18 - LRB103 28571 HLH 54952 b
642	642	1 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
643	643	2 July 1, 2004 and through June 30, 2005, the use in this State
644	644	3 of motor vehicles of the second division: (i) with a gross
645	645	4 vehicle weight rating in excess of 8,000 pounds; (ii) that are
646	646	5 subject to the commercial distribution fee imposed under
647	647	6 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
648	648	7 are primarily used for commercial purposes. Through June 30,
649	649	8 2005, this exemption applies to repair and replacement parts
650	650	9 added after the initial purchase of such a motor vehicle if
651	651	10 that motor vehicle is used in a manner that would qualify for
652	652	11 the rolling stock exemption otherwise provided for in this
653	653	12 Act. For purposes of this paragraph, the term "used for
654	654	13 commercial purposes" means the transportation of persons or
655	655	14 property in furtherance of any commercial or industrial
656	656	15 enterprise, whether for-hire or not.
657	657	16 (34) Beginning January 1, 2008, tangible personal property
658	658	17 used in the construction or maintenance of a community water
659	659	18 supply, as defined under Section 3.145 of the Environmental
660	660	19 Protection Act, that is operated by a not-for-profit
661	661	20 corporation that holds a valid water supply permit issued
662	662	21 under Title IV of the Environmental Protection Act. This
663	663	22 paragraph is exempt from the provisions of Section 3-90.
664	664	23 (35) Beginning January 1, 2010 and continuing through
665	665	24 December 31, 2024, materials, parts, equipment, components,
666	666	25 and furnishings incorporated into or upon an aircraft as part
667	667	26 of the modification, refurbishment, completion, replacement,
668	668
669	669
670	670
671	671
672	672
673	673	HB3434 - 18 - LRB103 28571 HLH 54952 b
674	674
675	675
676	676	HB3434- 19 -LRB103 28571 HLH 54952 b HB3434 - 19 - LRB103 28571 HLH 54952 b
677	677	HB3434 - 19 - LRB103 28571 HLH 54952 b
678	678	1 repair, or maintenance of the aircraft. This exemption
679	679	2 includes consumable supplies used in the modification,
680	680	3 refurbishment, completion, replacement, repair, and
681	681	4 maintenance of aircraft, but excludes any materials, parts,
682	682	5 equipment, components, and consumable supplies used in the
683	683	6 modification, replacement, repair, and maintenance of aircraft
684	684	7 engines or power plants, whether such engines or power plants
685	685	8 are installed or uninstalled upon any such aircraft.
686	686	9 "Consumable supplies" include, but are not limited to,
687	687	10 adhesive, tape, sandpaper, general purpose lubricants,
688	688	11 cleaning solution, latex gloves, and protective films. This
689	689	12 exemption applies only to the use of qualifying tangible
690	690	13 personal property by persons who modify, refurbish, complete,
691	691	14 repair, replace, or maintain aircraft and who (i) hold an Air
692	692	15 Agency Certificate and are empowered to operate an approved
693	693	16 repair station by the Federal Aviation Administration, (ii)
694	694	17 have a Class IV Rating, and (iii) conduct operations in
695	695	18 accordance with Part 145 of the Federal Aviation Regulations.
696	696	19 The exemption does not include aircraft operated by a
697	697	20 commercial air carrier providing scheduled passenger air
698	698	21 service pursuant to authority issued under Part 121 or Part
699	699	22 129 of the Federal Aviation Regulations. The changes made to
700	700	23 this paragraph (35) by Public Act 98-534 are declarative of
701	701	24 existing law. It is the intent of the General Assembly that the
702	702	25 exemption under this paragraph (35) applies continuously from
703	703	26 January 1, 2010 through December 31, 2024; however, no claim
704	704
705	705
706	706
707	707
708	708
709	709	HB3434 - 19 - LRB103 28571 HLH 54952 b
710	710
711	711
712	712	HB3434- 20 -LRB103 28571 HLH 54952 b HB3434 - 20 - LRB103 28571 HLH 54952 b
713	713	HB3434 - 20 - LRB103 28571 HLH 54952 b
714	714	1 for credit or refund is allowed for taxes paid as a result of
715	715	2 the disallowance of this exemption on or after January 1, 2015
716	716	3 and prior to February 5, 2020 (the effective date of Public Act
717	717	4 101-629) this amendatory Act of the 101st General Assembly.
718	718	5 (36) Tangible personal property purchased by a
719	719	6 public-facilities corporation, as described in Section
720	720	7 11-65-10 of the Illinois Municipal Code, for purposes of
721	721	8 constructing or furnishing a municipal convention hall, but
722	722	9 only if the legal title to the municipal convention hall is
723	723	10 transferred to the municipality without any further
724	724	11 consideration by or on behalf of the municipality at the time
725	725	12 of the completion of the municipal convention hall or upon the
726	726	13 retirement or redemption of any bonds or other debt
727	727	14 instruments issued by the public-facilities corporation in
728	728	15 connection with the development of the municipal convention
729	729	16 hall. This exemption includes existing public-facilities
730	730	17 corporations as provided in Section 11-65-25 of the Illinois
731	731	18 Municipal Code. This paragraph is exempt from the provisions
732	732	19 of Section 3-90.
733	733	20 (37) Beginning January 1, 2017 and through December 31,
734	734	21 2026, menstrual pads, tampons, and menstrual cups.
735	735	22 (38) Merchandise that is subject to the Rental Purchase
736	736	23 Agreement Occupation and Use Tax. The purchaser must certify
737	737	24 that the item is purchased to be rented subject to a rental
738	738	25 purchase agreement, as defined in the Rental Purchase
739	739	26 Agreement Act, and provide proof of registration under the
740	740
741	741
742	742
743	743
744	744
745	745	HB3434 - 20 - LRB103 28571 HLH 54952 b
746	746
747	747
748	748	HB3434- 21 -LRB103 28571 HLH 54952 b HB3434 - 21 - LRB103 28571 HLH 54952 b
749	749	HB3434 - 21 - LRB103 28571 HLH 54952 b
750	750	1 Rental Purchase Agreement Occupation and Use Tax Act. This
751	751	2 paragraph is exempt from the provisions of Section 3-90.
752	752	3 (39) Tangible personal property purchased by a purchaser
753	753	4 who is exempt from the tax imposed by this Act by operation of
754	754	5 federal law. This paragraph is exempt from the provisions of
755	755	6 Section 3-90.
756	756	7 (40) Qualified tangible personal property used in the
757	757	8 construction or operation of a data center that has been
758	758	9 granted a certificate of exemption by the Department of
759	759	10 Commerce and Economic Opportunity, whether that tangible
760	760	11 personal property is purchased by the owner, operator, or
761	761	12 tenant of the data center or by a contractor or subcontractor
762	762	13 of the owner, operator, or tenant. Data centers that would
763	763	14 have qualified for a certificate of exemption prior to January
764	764	15 1, 2020 had Public Act 101-31 been in effect may apply for and
765	765	16 obtain an exemption for subsequent purchases of computer
766	766	17 equipment or enabling software purchased or leased to upgrade,
767	767	18 supplement, or replace computer equipment or enabling software
768	768	19 purchased or leased in the original investment that would have
769	769	20 qualified.
770	770	21 The Department of Commerce and Economic Opportunity shall
771	771	22 grant a certificate of exemption under this item (40) to
772	772	23 qualified data centers as defined by Section 605-1025 of the
773	773	24 Department of Commerce and Economic Opportunity Law of the
774	774	25 Civil Administrative Code of Illinois.
775	775	26 For the purposes of this item (40):
776	776
777	777
778	778
779	779
780	780
781	781	HB3434 - 21 - LRB103 28571 HLH 54952 b
782	782
783	783
784	784	HB3434- 22 -LRB103 28571 HLH 54952 b HB3434 - 22 - LRB103 28571 HLH 54952 b
785	785	HB3434 - 22 - LRB103 28571 HLH 54952 b
786	786	1 "Data center" means a building or a series of
787	787	2 buildings rehabilitated or constructed to house working
788	788	3 servers in one physical location or multiple sites within
789	789	4 the State of Illinois.
790	790	5 "Qualified tangible personal property" means:
791	791	6 electrical systems and equipment; climate control and
792	792	7 chilling equipment and systems; mechanical systems and
793	793	8 equipment; monitoring and secure systems; emergency
794	794	9 generators; hardware; computers; servers; data storage
795	795	10 devices; network connectivity equipment; racks; cabinets;
796	796	11 telecommunications cabling infrastructure; raised floor
797	797	12 systems; peripheral components or systems; software;
798	798	13 mechanical, electrical, or plumbing systems; battery
799	799	14 systems; cooling systems and towers; temperature control
800	800	15 systems; other cabling; and other data center
801	801	16 infrastructure equipment and systems necessary to operate
802	802	17 qualified tangible personal property, including fixtures;
803	803	18 and component parts of any of the foregoing, including
804	804	19 installation, maintenance, repair, refurbishment, and
805	805	20 replacement of qualified tangible personal property to
806	806	21 generate, transform, transmit, distribute, or manage
807	807	22 electricity necessary to operate qualified tangible
808	808	23 personal property; and all other tangible personal
809	809	24 property that is essential to the operations of a computer
810	810	25 data center. The term "qualified tangible personal
811	811	26 property" also includes building materials physically
812	812
813	813
814	814
815	815
816	816
817	817	HB3434 - 22 - LRB103 28571 HLH 54952 b
818	818
819	819
820	820	HB3434- 23 -LRB103 28571 HLH 54952 b HB3434 - 23 - LRB103 28571 HLH 54952 b
821	821	HB3434 - 23 - LRB103 28571 HLH 54952 b
822	822	1 incorporated in to the qualifying data center. To document
823	823	2 the exemption allowed under this Section, the retailer
824	824	3 must obtain from the purchaser a copy of the certificate
825	825	4 of eligibility issued by the Department of Commerce and
826	826	5 Economic Opportunity.
827	827	6 This item (40) is exempt from the provisions of Section
828	828	7 3-90.
829	829	8 (41) Beginning July 1, 2022, breast pumps, breast pump
830	830	9 collection and storage supplies, and breast pump kits. This
831	831	10 item (41) is exempt from the provisions of Section 3-90. As
832	832	11 used in this item (41):
833	833	12 "Breast pump" means an electrically controlled or
834	834	13 manually controlled pump device designed or marketed to be
835	835	14 used to express milk from a human breast during lactation,
836	836	15 including the pump device and any battery, AC adapter, or
837	837	16 other power supply unit that is used to power the pump
838	838	17 device and is packaged and sold with the pump device at the
839	839	18 time of sale.
840	840	19 "Breast pump collection and storage supplies" means
841	841	20 items of tangible personal property designed or marketed
842	842	21 to be used in conjunction with a breast pump to collect
843	843	22 milk expressed from a human breast and to store collected
844	844	23 milk until it is ready for consumption.
845	845	24 "Breast pump collection and storage supplies"
846	846	25 includes, but is not limited to: breast shields and breast
847	847	26 shield connectors; breast pump tubes and tubing adapters;
848	848
849	849
850	850
851	851
852	852
853	853	HB3434 - 23 - LRB103 28571 HLH 54952 b
854	854
855	855
856	856	HB3434- 24 -LRB103 28571 HLH 54952 b HB3434 - 24 - LRB103 28571 HLH 54952 b
857	857	HB3434 - 24 - LRB103 28571 HLH 54952 b
858	858	1 breast pump valves and membranes; backflow protectors and
859	859	2 backflow protector adaptors; bottles and bottle caps
860	860	3 specific to the operation of the breast pump; and breast
861	861	4 milk storage bags.
862	862	5 "Breast pump collection and storage supplies" does not
863	863	6 include: (1) bottles and bottle caps not specific to the
864	864	7 operation of the breast pump; (2) breast pump travel bags
865	865	8 and other similar carrying accessories, including ice
866	866	9 packs, labels, and other similar products; (3) breast pump
867	867	10 cleaning supplies; (4) nursing bras, bra pads, breast
868	868	11 shells, and other similar products; and (5) creams,
869	869	12 ointments, and other similar products that relieve
870	870	13 breastfeeding-related symptoms or conditions of the
871	871	14 breasts or nipples, unless sold as part of a breast pump
872	872	15 kit that is pre-packaged by the breast pump manufacturer
873	873	16 or distributor.
874	874	17 "Breast pump kit" means a kit that: (1) contains no
875	875	18 more than a breast pump, breast pump collection and
876	876	19 storage supplies, a rechargeable battery for operating the
877	877	20 breast pump, a breastmilk cooler, bottle stands, ice
878	878	21 packs, and a breast pump carrying case; and (2) is
879	879	22 pre-packaged as a breast pump kit by the breast pump
880	880	23 manufacturer or distributor.
881	881	24 (42) (41) Tangible personal property sold by or on behalf
882	882	25 of the State Treasurer pursuant to the Revised Uniform
883	883	26 Unclaimed Property Act. This item (42) (41) is exempt from the
884	884
885	885
886	886
887	887
888	888
889	889	HB3434 - 24 - LRB103 28571 HLH 54952 b
890	890
891	891
892	892	HB3434- 25 -LRB103 28571 HLH 54952 b HB3434 - 25 - LRB103 28571 HLH 54952 b
893	893	HB3434 - 25 - LRB103 28571 HLH 54952 b
894	894	1 provisions of Section 3-90.
895	895	2 (43) Tangible personal property for which a certificate of
896	896	3 exemption has been issued under Section 2505-810 of the
897	897	4 Department of Revenue Law of the Civil Administrative Code of
898	898	5 Illinois. This paragraph is exempt from the provisions of
899	899	6 Section 3-90.
900	900	7 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
901	901	8 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
902	902	9 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
903	903	10 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
904	904	11 eff. 5-27-22; revised 8-1-22.)
905	905	12 Section 15. The Service Use Tax Act is amended by changing
906	906	13 Section 3-5 as follows:
907	907	14 (35 ILCS 110/3-5)
908	908	15 Sec. 3-5. Exemptions. Use of the following tangible
909	909	16 personal property is exempt from the tax imposed by this Act:
910	910	17 (1) Personal property purchased from a corporation,
911	911	18 society, association, foundation, institution, or
912	912	19 organization, other than a limited liability company, that is
913	913	20 organized and operated as a not-for-profit service enterprise
914	914	21 for the benefit of persons 65 years of age or older if the
915	915	22 personal property was not purchased by the enterprise for the
916	916	23 purpose of resale by the enterprise.
917	917	24 (2) Personal property purchased by a non-profit Illinois
918	918
919	919
920	920
921	921
922	922
923	923	HB3434 - 25 - LRB103 28571 HLH 54952 b
924	924
925	925
926	926	HB3434- 26 -LRB103 28571 HLH 54952 b HB3434 - 26 - LRB103 28571 HLH 54952 b
927	927	HB3434 - 26 - LRB103 28571 HLH 54952 b
928	928	1 county fair association for use in conducting, operating, or
929	929	2 promoting the county fair.
930	930	3 (3) Personal property purchased by a not-for-profit arts
931	931	4 or cultural organization that establishes, by proof required
932	932	5 by the Department by rule, that it has received an exemption
933	933	6 under Section 501(c)(3) of the Internal Revenue Code and that
934	934	7 is organized and operated primarily for the presentation or
935	935	8 support of arts or cultural programming, activities, or
936	936	9 services. These organizations include, but are not limited to,
937	937	10 music and dramatic arts organizations such as symphony
938	938	11 orchestras and theatrical groups, arts and cultural service
939	939	12 organizations, local arts councils, visual arts organizations,
940	940	13 and media arts organizations. On and after July 1, 2001 (the
941	941	14 effective date of Public Act 92-35), however, an entity
942	942	15 otherwise eligible for this exemption shall not make tax-free
943	943	16 purchases unless it has an active identification number issued
944	944	17 by the Department.
945	945	18 (4) Legal tender, currency, medallions, or gold or silver
946	946	19 coinage issued by the State of Illinois, the government of the
947	947	20 United States of America, or the government of any foreign
948	948	21 country, and bullion.
949	949	22 (5) Until July 1, 2003 and beginning again on September 1,
950	950	23 2004 through August 30, 2014, graphic arts machinery and
951	951	24 equipment, including repair and replacement parts, both new
952	952	25 and used, and including that manufactured on special order or
953	953	26 purchased for lease, certified by the purchaser to be used
954	954
955	955
956	956
957	957
958	958
959	959	HB3434 - 26 - LRB103 28571 HLH 54952 b
960	960
961	961
962	962	HB3434- 27 -LRB103 28571 HLH 54952 b HB3434 - 27 - LRB103 28571 HLH 54952 b
963	963	HB3434 - 27 - LRB103 28571 HLH 54952 b
964	964	1 primarily for graphic arts production. Equipment includes
965	965	2 chemicals or chemicals acting as catalysts but only if the
966	966	3 chemicals or chemicals acting as catalysts effect a direct and
967	967	4 immediate change upon a graphic arts product. Beginning on
968	968	5 July 1, 2017, graphic arts machinery and equipment is included
969	969	6 in the manufacturing and assembling machinery and equipment
970	970	7 exemption under Section 2 of this Act.
971	971	8 (6) Personal property purchased from a teacher-sponsored
972	972	9 student organization affiliated with an elementary or
973	973	10 secondary school located in Illinois.
974	974	11 (7) Farm machinery and equipment, both new and used,
975	975	12 including that manufactured on special order, certified by the
976	976	13 purchaser to be used primarily for production agriculture or
977	977	14 State or federal agricultural programs, including individual
978	978	15 replacement parts for the machinery and equipment, including
979	979	16 machinery and equipment purchased for lease, and including
980	980	17 implements of husbandry defined in Section 1-130 of the
981	981	18 Illinois Vehicle Code, farm machinery and agricultural
982	982	19 chemical and fertilizer spreaders, and nurse wagons required
983	983	20 to be registered under Section 3-809 of the Illinois Vehicle
984	984	21 Code, but excluding other motor vehicles required to be
985	985	22 registered under the Illinois Vehicle Code. Horticultural
986	986	23 polyhouses or hoop houses used for propagating, growing, or
987	987	24 overwintering plants shall be considered farm machinery and
988	988	25 equipment under this item (7). Agricultural chemical tender
989	989	26 tanks and dry boxes shall include units sold separately from a
990	990
991	991
992	992
993	993
994	994
995	995	HB3434 - 27 - LRB103 28571 HLH 54952 b
996	996
997	997
998	998	HB3434- 28 -LRB103 28571 HLH 54952 b HB3434 - 28 - LRB103 28571 HLH 54952 b
999	999	HB3434 - 28 - LRB103 28571 HLH 54952 b
1000	1000	1 motor vehicle required to be licensed and units sold mounted
1001	1001	2 on a motor vehicle required to be licensed if the selling price
1002	1002	3 of the tender is separately stated.
1003	1003	4 Farm machinery and equipment shall include precision
1004	1004	5 farming equipment that is installed or purchased to be
1005	1005	6 installed on farm machinery and equipment including, but not
1006	1006	7 limited to, tractors, harvesters, sprayers, planters, seeders,
1007	1007	8 or spreaders. Precision farming equipment includes, but is not
1008	1008	9 limited to, soil testing sensors, computers, monitors,
1009	1009	10 software, global positioning and mapping systems, and other
1010	1010	11 such equipment.
1011	1011	12 Farm machinery and equipment also includes computers,
1012	1012	13 sensors, software, and related equipment used primarily in the
1013	1013	14 computer-assisted operation of production agriculture
1014	1014	15 facilities, equipment, and activities such as, but not limited
1015	1015	16 to, the collection, monitoring, and correlation of animal and
1016	1016	17 crop data for the purpose of formulating animal diets and
1017	1017	18 agricultural chemicals. This item (7) is exempt from the
1018	1018	19 provisions of Section 3-75.
1019	1019	20 (8) Until June 30, 2013, fuel and petroleum products sold
1020	1020	21 to or used by an air common carrier, certified by the carrier
1021	1021	22 to be used for consumption, shipment, or storage in the
1022	1022	23 conduct of its business as an air common carrier, for a flight
1023	1023	24 destined for or returning from a location or locations outside
1024	1024	25 the United States without regard to previous or subsequent
1025	1025	26 domestic stopovers.
1026	1026
1027	1027
1028	1028
1029	1029
1030	1030
1031	1031	HB3434 - 28 - LRB103 28571 HLH 54952 b
1032	1032
1033	1033
1034	1034	HB3434- 29 -LRB103 28571 HLH 54952 b HB3434 - 29 - LRB103 28571 HLH 54952 b
1035	1035	HB3434 - 29 - LRB103 28571 HLH 54952 b
1036	1036	1 Beginning July 1, 2013, fuel and petroleum products sold
1037	1037	2 to or used by an air carrier, certified by the carrier to be
1038	1038	3 used for consumption, shipment, or storage in the conduct of
1039	1039	4 its business as an air common carrier, for a flight that (i) is
1040	1040	5 engaged in foreign trade or is engaged in trade between the
1041	1041	6 United States and any of its possessions and (ii) transports
1042	1042	7 at least one individual or package for hire from the city of
1043	1043	8 origination to the city of final destination on the same
1044	1044	9 aircraft, without regard to a change in the flight number of
1045	1045	10 that aircraft.
1046	1046	11 (9) Proceeds of mandatory service charges separately
1047	1047	12 stated on customers' bills for the purchase and consumption of
1048	1048	13 food and beverages acquired as an incident to the purchase of a
1049	1049	14 service from a serviceman, to the extent that the proceeds of
1050	1050	15 the service charge are in fact turned over as tips or as a
1051	1051	16 substitute for tips to the employees who participate directly
1052	1052	17 in preparing, serving, hosting or cleaning up the food or
1053	1053	18 beverage function with respect to which the service charge is
1054	1054	19 imposed.
1055	1055	20 (10) Until July 1, 2003, oil field exploration, drilling,
1056	1056	21 and production equipment, including (i) rigs and parts of
1057	1057	22 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1058	1058	23 pipe and tubular goods, including casing and drill strings,
1059	1059	24 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1060	1060	25 lines, (v) any individual replacement part for oil field
1061	1061	26 exploration, drilling, and production equipment, and (vi)
1062	1062
1063	1063
1064	1064
1065	1065
1066	1066
1067	1067	HB3434 - 29 - LRB103 28571 HLH 54952 b
1068	1068
1069	1069
1070	1070	HB3434- 30 -LRB103 28571 HLH 54952 b HB3434 - 30 - LRB103 28571 HLH 54952 b
1071	1071	HB3434 - 30 - LRB103 28571 HLH 54952 b
1072	1072	1 machinery and equipment purchased for lease; but excluding
1073	1073	2 motor vehicles required to be registered under the Illinois
1074	1074	3 Vehicle Code.
1075	1075	4 (11) Proceeds from the sale of photoprocessing machinery
1076	1076	5 and equipment, including repair and replacement parts, both
1077	1077	6 new and used, including that manufactured on special order,
1078	1078	7 certified by the purchaser to be used primarily for
1079	1079	8 photoprocessing, and including photoprocessing machinery and
1080	1080	9 equipment purchased for lease.
1081	1081	10 (12) Until July 1, 2028, coal and aggregate exploration,
1082	1082	11 mining, off-highway hauling, processing, maintenance, and
1083	1083	12 reclamation equipment, including replacement parts and
1084	1084	13 equipment, and including equipment purchased for lease, but
1085	1085	14 excluding motor vehicles required to be registered under the
1086	1086	15 Illinois Vehicle Code. The changes made to this Section by
1087	1087	16 Public Act 97-767 apply on and after July 1, 2003, but no claim
1088	1088	17 for credit or refund is allowed on or after August 16, 2013
1089	1089	18 (the effective date of Public Act 98-456) for such taxes paid
1090	1090	19 during the period beginning July 1, 2003 and ending on August
1091	1091	20 16, 2013 (the effective date of Public Act 98-456).
1092	1092	21 (13) Semen used for artificial insemination of livestock
1093	1093	22 for direct agricultural production.
1094	1094	23 (14) Horses, or interests in horses, registered with and
1095	1095	24 meeting the requirements of any of the Arabian Horse Club
1096	1096	25 Registry of America, Appaloosa Horse Club, American Quarter
1097	1097	26 Horse Association, United States Trotting Association, or
1098	1098
1099	1099
1100	1100
1101	1101
1102	1102
1103	1103	HB3434 - 30 - LRB103 28571 HLH 54952 b
1104	1104
1105	1105
1106	1106	HB3434- 31 -LRB103 28571 HLH 54952 b HB3434 - 31 - LRB103 28571 HLH 54952 b
1107	1107	HB3434 - 31 - LRB103 28571 HLH 54952 b
1108	1108	1 Jockey Club, as appropriate, used for purposes of breeding or
1109	1109	2 racing for prizes. This item (14) is exempt from the
1110	1110	3 provisions of Section 3-75, and the exemption provided for
1111	1111	4 under this item (14) applies for all periods beginning May 30,
1112	1112	5 1995, but no claim for credit or refund is allowed on or after
1113	1113	6 January 1, 2008 (the effective date of Public Act 95-88) for
1114	1114	7 such taxes paid during the period beginning May 30, 2000 and
1115	1115	8 ending on January 1, 2008 (the effective date of Public Act
1116	1116	9 95-88).
1117	1117	10 (15) Computers and communications equipment utilized for
1118	1118	11 any hospital purpose and equipment used in the diagnosis,
1119	1119	12 analysis, or treatment of hospital patients purchased by a
1120	1120	13 lessor who leases the equipment, under a lease of one year or
1121	1121	14 longer executed or in effect at the time the lessor would
1122	1122	15 otherwise be subject to the tax imposed by this Act, to a
1123	1123	16 hospital that has been issued an active tax exemption
1124	1124	17 identification number by the Department under Section 1g of
1125	1125	18 the Retailers' Occupation Tax Act. If the equipment is leased
1126	1126	19 in a manner that does not qualify for this exemption or is used
1127	1127	20 in any other non-exempt manner, the lessor shall be liable for
1128	1128	21 the tax imposed under this Act or the Use Tax Act, as the case
1129	1129	22 may be, based on the fair market value of the property at the
1130	1130	23 time the non-qualifying use occurs. No lessor shall collect or
1131	1131	24 attempt to collect an amount (however designated) that
1132	1132	25 purports to reimburse that lessor for the tax imposed by this
1133	1133	26 Act or the Use Tax Act, as the case may be, if the tax has not
1134	1134
1135	1135
1136	1136
1137	1137
1138	1138
1139	1139	HB3434 - 31 - LRB103 28571 HLH 54952 b
1140	1140
1141	1141
1142	1142	HB3434- 32 -LRB103 28571 HLH 54952 b HB3434 - 32 - LRB103 28571 HLH 54952 b
1143	1143	HB3434 - 32 - LRB103 28571 HLH 54952 b
1144	1144	1 been paid by the lessor. If a lessor improperly collects any
1145	1145	2 such amount from the lessee, the lessee shall have a legal
1146	1146	3 right to claim a refund of that amount from the lessor. If,
1147	1147	4 however, that amount is not refunded to the lessee for any
1148	1148	5 reason, the lessor is liable to pay that amount to the
1149	1149	6 Department.
1150	1150	7 (16) Personal property purchased by a lessor who leases
1151	1151	8 the property, under a lease of one year or longer executed or
1152	1152	9 in effect at the time the lessor would otherwise be subject to
1153	1153	10 the tax imposed by this Act, to a governmental body that has
1154	1154	11 been issued an active tax exemption identification number by
1155	1155	12 the Department under Section 1g of the Retailers' Occupation
1156	1156	13 Tax Act. If the property is leased in a manner that does not
1157	1157	14 qualify for this exemption or is used in any other non-exempt
1158	1158	15 manner, the lessor shall be liable for the tax imposed under
1159	1159	16 this Act or the Use Tax Act, as the case may be, based on the
1160	1160	17 fair market value of the property at the time the
1161	1161	18 non-qualifying use occurs. No lessor shall collect or attempt
1162	1162	19 to collect an amount (however designated) that purports to
1163	1163	20 reimburse that lessor for the tax imposed by this Act or the
1164	1164	21 Use Tax Act, as the case may be, if the tax has not been paid
1165	1165	22 by the lessor. If a lessor improperly collects any such amount
1166	1166	23 from the lessee, the lessee shall have a legal right to claim a
1167	1167	24 refund of that amount from the lessor. If, however, that
1168	1168	25 amount is not refunded to the lessee for any reason, the lessor
1169	1169	26 is liable to pay that amount to the Department.
1170	1170
1171	1171
1172	1172
1173	1173
1174	1174
1175	1175	HB3434 - 32 - LRB103 28571 HLH 54952 b
1176	1176
1177	1177
1178	1178	HB3434- 33 -LRB103 28571 HLH 54952 b HB3434 - 33 - LRB103 28571 HLH 54952 b
1179	1179	HB3434 - 33 - LRB103 28571 HLH 54952 b
1180	1180	1 (17) Beginning with taxable years ending on or after
1181	1181	2 December 31, 1995 and ending with taxable years ending on or
1182	1182	3 before December 31, 2004, personal property that is donated
1183	1183	4 for disaster relief to be used in a State or federally declared
1184	1184	5 disaster area in Illinois or bordering Illinois by a
1185	1185	6 manufacturer or retailer that is registered in this State to a
1186	1186	7 corporation, society, association, foundation, or institution
1187	1187	8 that has been issued a sales tax exemption identification
1188	1188	9 number by the Department that assists victims of the disaster
1189	1189	10 who reside within the declared disaster area.
1190	1190	11 (18) Beginning with taxable years ending on or after
1191	1191	12 December 31, 1995 and ending with taxable years ending on or
1192	1192	13 before December 31, 2004, personal property that is used in
1193	1193	14 the performance of infrastructure repairs in this State,
1194	1194	15 including but not limited to municipal roads and streets,
1195	1195	16 access roads, bridges, sidewalks, waste disposal systems,
1196	1196	17 water and sewer line extensions, water distribution and
1197	1197	18 purification facilities, storm water drainage and retention
1198	1198	19 facilities, and sewage treatment facilities, resulting from a
1199	1199	20 State or federally declared disaster in Illinois or bordering
1200	1200	21 Illinois when such repairs are initiated on facilities located
1201	1201	22 in the declared disaster area within 6 months after the
1202	1202	23 disaster.
1203	1203	24 (19) Beginning July 1, 1999, game or game birds purchased
1204	1204	25 at a "game breeding and hunting preserve area" as that term is
1205	1205	26 used in the Wildlife Code. This paragraph is exempt from the
1206	1206
1207	1207
1208	1208
1209	1209
1210	1210
1211	1211	HB3434 - 33 - LRB103 28571 HLH 54952 b
1212	1212
1213	1213
1214	1214	HB3434- 34 -LRB103 28571 HLH 54952 b HB3434 - 34 - LRB103 28571 HLH 54952 b
1215	1215	HB3434 - 34 - LRB103 28571 HLH 54952 b
1216	1216	1 provisions of Section 3-75.
1217	1217	2 (20) A motor vehicle, as that term is defined in Section
1218	1218	3 1-146 of the Illinois Vehicle Code, that is donated to a
1219	1219	4 corporation, limited liability company, society, association,
1220	1220	5 foundation, or institution that is determined by the
1221	1221	6 Department to be organized and operated exclusively for
1222	1222	7 educational purposes. For purposes of this exemption, "a
1223	1223	8 corporation, limited liability company, society, association,
1224	1224	9 foundation, or institution organized and operated exclusively
1225	1225	10 for educational purposes" means all tax-supported public
1226	1226	11 schools, private schools that offer systematic instruction in
1227	1227	12 useful branches of learning by methods common to public
1228	1228	13 schools and that compare favorably in their scope and
1229	1229	14 intensity with the course of study presented in tax-supported
1230	1230	15 schools, and vocational or technical schools or institutes
1231	1231	16 organized and operated exclusively to provide a course of
1232	1232	17 study of not less than 6 weeks duration and designed to prepare
1233	1233	18 individuals to follow a trade or to pursue a manual,
1234	1234	19 technical, mechanical, industrial, business, or commercial
1235	1235	20 occupation.
1236	1236	21 (21) Beginning January 1, 2000, personal property,
1237	1237	22 including food, purchased through fundraising events for the
1238	1238	23 benefit of a public or private elementary or secondary school,
1239	1239	24 a group of those schools, or one or more school districts if
1240	1240	25 the events are sponsored by an entity recognized by the school
1241	1241	26 district that consists primarily of volunteers and includes
1242	1242
1243	1243
1244	1244
1245	1245
1246	1246
1247	1247	HB3434 - 34 - LRB103 28571 HLH 54952 b
1248	1248
1249	1249
1250	1250	HB3434- 35 -LRB103 28571 HLH 54952 b HB3434 - 35 - LRB103 28571 HLH 54952 b
1251	1251	HB3434 - 35 - LRB103 28571 HLH 54952 b
1252	1252	1 parents and teachers of the school children. This paragraph
1253	1253	2 does not apply to fundraising events (i) for the benefit of
1254	1254	3 private home instruction or (ii) for which the fundraising
1255	1255	4 entity purchases the personal property sold at the events from
1256	1256	5 another individual or entity that sold the property for the
1257	1257	6 purpose of resale by the fundraising entity and that profits
1258	1258	7 from the sale to the fundraising entity. This paragraph is
1259	1259	8 exempt from the provisions of Section 3-75.
1260	1260	9 (22) Beginning January 1, 2000 and through December 31,
1261	1261	10 2001, new or used automatic vending machines that prepare and
1262	1262	11 serve hot food and beverages, including coffee, soup, and
1263	1263	12 other items, and replacement parts for these machines.
1264	1264	13 Beginning January 1, 2002 and through June 30, 2003, machines
1265	1265	14 and parts for machines used in commercial, coin-operated
1266	1266	15 amusement and vending business if a use or occupation tax is
1267	1267	16 paid on the gross receipts derived from the use of the
1268	1268	17 commercial, coin-operated amusement and vending machines. This
1269	1269	18 paragraph is exempt from the provisions of Section 3-75.
1270	1270	19 (23) Beginning August 23, 2001 and through June 30, 2016,
1271	1271	20 food for human consumption that is to be consumed off the
1272	1272	21 premises where it is sold (other than alcoholic beverages,
1273	1273	22 soft drinks, and food that has been prepared for immediate
1274	1274	23 consumption) and prescription and nonprescription medicines,
1275	1275	24 drugs, medical appliances, and insulin, urine testing
1276	1276	25 materials, syringes, and needles used by diabetics, for human
1277	1277	26 use, when purchased for use by a person receiving medical
1278	1278
1279	1279
1280	1280
1281	1281
1282	1282
1283	1283	HB3434 - 35 - LRB103 28571 HLH 54952 b
1284	1284
1285	1285
1286	1286	HB3434- 36 -LRB103 28571 HLH 54952 b HB3434 - 36 - LRB103 28571 HLH 54952 b
1287	1287	HB3434 - 36 - LRB103 28571 HLH 54952 b
1288	1288	1 assistance under Article V of the Illinois Public Aid Code who
1289	1289	2 resides in a licensed long-term care facility, as defined in
1290	1290	3 the Nursing Home Care Act, or in a licensed facility as defined
1291	1291	4 in the ID/DD Community Care Act, the MC/DD Act, or the
1292	1292	5 Specialized Mental Health Rehabilitation Act of 2013.
1293	1293	6 (24) Beginning on August 2, 2001 (the effective date of
1294	1294	7 Public Act 92-227), computers and communications equipment
1295	1295	8 utilized for any hospital purpose and equipment used in the
1296	1296	9 diagnosis, analysis, or treatment of hospital patients
1297	1297	10 purchased by a lessor who leases the equipment, under a lease
1298	1298	11 of one year or longer executed or in effect at the time the
1299	1299	12 lessor would otherwise be subject to the tax imposed by this
1300	1300	13 Act, to a hospital that has been issued an active tax exemption
1301	1301	14 identification number by the Department under Section 1g of
1302	1302	15 the Retailers' Occupation Tax Act. If the equipment is leased
1303	1303	16 in a manner that does not qualify for this exemption or is used
1304	1304	17 in any other nonexempt manner, the lessor shall be liable for
1305	1305	18 the tax imposed under this Act or the Use Tax Act, as the case
1306	1306	19 may be, based on the fair market value of the property at the
1307	1307	20 time the nonqualifying use occurs. No lessor shall collect or
1308	1308	21 attempt to collect an amount (however designated) that
1309	1309	22 purports to reimburse that lessor for the tax imposed by this
1310	1310	23 Act or the Use Tax Act, as the case may be, if the tax has not
1311	1311	24 been paid by the lessor. If a lessor improperly collects any
1312	1312	25 such amount from the lessee, the lessee shall have a legal
1313	1313	26 right to claim a refund of that amount from the lessor. If,
1314	1314
1315	1315
1316	1316
1317	1317
1318	1318
1319	1319	HB3434 - 36 - LRB103 28571 HLH 54952 b
1320	1320
1321	1321
1322	1322	HB3434- 37 -LRB103 28571 HLH 54952 b HB3434 - 37 - LRB103 28571 HLH 54952 b
1323	1323	HB3434 - 37 - LRB103 28571 HLH 54952 b
1324	1324	1 however, that amount is not refunded to the lessee for any
1325	1325	2 reason, the lessor is liable to pay that amount to the
1326	1326	3 Department. This paragraph is exempt from the provisions of
1327	1327	4 Section 3-75.
1328	1328	5 (25) Beginning on August 2, 2001 (the effective date of
1329	1329	6 Public Act 92-227), personal property purchased by a lessor
1330	1330	7 who leases the property, under a lease of one year or longer
1331	1331	8 executed or in effect at the time the lessor would otherwise be
1332	1332	9 subject to the tax imposed by this Act, to a governmental body
1333	1333	10 that has been issued an active tax exemption identification
1334	1334	11 number by the Department under Section 1g of the Retailers'
1335	1335	12 Occupation Tax Act. If the property is leased in a manner that
1336	1336	13 does not qualify for this exemption or is used in any other
1337	1337	14 nonexempt manner, the lessor shall be liable for the tax
1338	1338	15 imposed under this Act or the Use Tax Act, as the case may be,
1339	1339	16 based on the fair market value of the property at the time the
1340	1340	17 nonqualifying use occurs. No lessor shall collect or attempt
1341	1341	18 to collect an amount (however designated) that purports to
1342	1342	19 reimburse that lessor for the tax imposed by this Act or the
1343	1343	20 Use Tax Act, as the case may be, if the tax has not been paid
1344	1344	21 by the lessor. If a lessor improperly collects any such amount
1345	1345	22 from the lessee, the lessee shall have a legal right to claim a
1346	1346	23 refund of that amount from the lessor. If, however, that
1347	1347	24 amount is not refunded to the lessee for any reason, the lessor
1348	1348	25 is liable to pay that amount to the Department. This paragraph
1349	1349	26 is exempt from the provisions of Section 3-75.
1350	1350
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355	HB3434 - 37 - LRB103 28571 HLH 54952 b
1356	1356
1357	1357
1358	1358	HB3434- 38 -LRB103 28571 HLH 54952 b HB3434 - 38 - LRB103 28571 HLH 54952 b
1359	1359	HB3434 - 38 - LRB103 28571 HLH 54952 b
1360	1360	1 (26) Beginning January 1, 2008, tangible personal property
1361	1361	2 used in the construction or maintenance of a community water
1362	1362	3 supply, as defined under Section 3.145 of the Environmental
1363	1363	4 Protection Act, that is operated by a not-for-profit
1364	1364	5 corporation that holds a valid water supply permit issued
1365	1365	6 under Title IV of the Environmental Protection Act. This
1366	1366	7 paragraph is exempt from the provisions of Section 3-75.
1367	1367	8 (27) Beginning January 1, 2010 and continuing through
1368	1368	9 December 31, 2024, materials, parts, equipment, components,
1369	1369	10 and furnishings incorporated into or upon an aircraft as part
1370	1370	11 of the modification, refurbishment, completion, replacement,
1371	1371	12 repair, or maintenance of the aircraft. This exemption
1372	1372	13 includes consumable supplies used in the modification,
1373	1373	14 refurbishment, completion, replacement, repair, and
1374	1374	15 maintenance of aircraft, but excludes any materials, parts,
1375	1375	16 equipment, components, and consumable supplies used in the
1376	1376	17 modification, replacement, repair, and maintenance of aircraft
1377	1377	18 engines or power plants, whether such engines or power plants
1378	1378	19 are installed or uninstalled upon any such aircraft.
1379	1379	20 "Consumable supplies" include, but are not limited to,
1380	1380	21 adhesive, tape, sandpaper, general purpose lubricants,
1381	1381	22 cleaning solution, latex gloves, and protective films. This
1382	1382	23 exemption applies only to the use of qualifying tangible
1383	1383	24 personal property transferred incident to the modification,
1384	1384	25 refurbishment, completion, replacement, repair, or maintenance
1385	1385	26 of aircraft by persons who (i) hold an Air Agency Certificate
1386	1386
1387	1387
1388	1388
1389	1389
1390	1390
1391	1391	HB3434 - 38 - LRB103 28571 HLH 54952 b
1392	1392
1393	1393
1394	1394	HB3434- 39 -LRB103 28571 HLH 54952 b HB3434 - 39 - LRB103 28571 HLH 54952 b
1395	1395	HB3434 - 39 - LRB103 28571 HLH 54952 b
1396	1396	1 and are empowered to operate an approved repair station by the
1397	1397	2 Federal Aviation Administration, (ii) have a Class IV Rating,
1398	1398	3 and (iii) conduct operations in accordance with Part 145 of
1399	1399	4 the Federal Aviation Regulations. The exemption does not
1400	1400	5 include aircraft operated by a commercial air carrier
1401	1401	6 providing scheduled passenger air service pursuant to
1402	1402	7 authority issued under Part 121 or Part 129 of the Federal
1403	1403	8 Aviation Regulations. The changes made to this paragraph (27)
1404	1404	9 by Public Act 98-534 are declarative of existing law. It is the
1405	1405	10 intent of the General Assembly that the exemption under this
1406	1406	11 paragraph (27) applies continuously from January 1, 2010
1407	1407	12 through December 31, 2024; however, no claim for credit or
1408	1408	13 refund is allowed for taxes paid as a result of the
1409	1409	14 disallowance of this exemption on or after January 1, 2015 and
1410	1410	15 prior to February 5, 2020 (the effective date of Public Act
1411	1411	16 101-629) this amendatory Act of the 101st General Assembly.
1412	1412	17 (28) Tangible personal property purchased by a
1413	1413	18 public-facilities corporation, as described in Section
1414	1414	19 11-65-10 of the Illinois Municipal Code, for purposes of
1415	1415	20 constructing or furnishing a municipal convention hall, but
1416	1416	21 only if the legal title to the municipal convention hall is
1417	1417	22 transferred to the municipality without any further
1418	1418	23 consideration by or on behalf of the municipality at the time
1419	1419	24 of the completion of the municipal convention hall or upon the
1420	1420	25 retirement or redemption of any bonds or other debt
1421	1421	26 instruments issued by the public-facilities corporation in
1422	1422
1423	1423
1424	1424
1425	1425
1426	1426
1427	1427	HB3434 - 39 - LRB103 28571 HLH 54952 b
1428	1428
1429	1429
1430	1430	HB3434- 40 -LRB103 28571 HLH 54952 b HB3434 - 40 - LRB103 28571 HLH 54952 b
1431	1431	HB3434 - 40 - LRB103 28571 HLH 54952 b
1432	1432	1 connection with the development of the municipal convention
1433	1433	2 hall. This exemption includes existing public-facilities
1434	1434	3 corporations as provided in Section 11-65-25 of the Illinois
1435	1435	4 Municipal Code. This paragraph is exempt from the provisions
1436	1436	5 of Section 3-75.
1437	1437	6 (29) Beginning January 1, 2017 and through December 31,
1438	1438	7 2026, menstrual pads, tampons, and menstrual cups.
1439	1439	8 (30) Tangible personal property transferred to a purchaser
1440	1440	9 who is exempt from the tax imposed by this Act by operation of
1441	1441	10 federal law. This paragraph is exempt from the provisions of
1442	1442	11 Section 3-75.
1443	1443	12 (31) Qualified tangible personal property used in the
1444	1444	13 construction or operation of a data center that has been
1445	1445	14 granted a certificate of exemption by the Department of
1446	1446	15 Commerce and Economic Opportunity, whether that tangible
1447	1447	16 personal property is purchased by the owner, operator, or
1448	1448	17 tenant of the data center or by a contractor or subcontractor
1449	1449	18 of the owner, operator, or tenant. Data centers that would
1450	1450	19 have qualified for a certificate of exemption prior to January
1451	1451	20 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
1452	1452	21 General Assembly been in effect, may apply for and obtain an
1453	1453	22 exemption for subsequent purchases of computer equipment or
1454	1454	23 enabling software purchased or leased to upgrade, supplement,
1455	1455	24 or replace computer equipment or enabling software purchased
1456	1456	25 or leased in the original investment that would have
1457	1457	26 qualified.
1458	1458
1459	1459
1460	1460
1461	1461
1462	1462
1463	1463	HB3434 - 40 - LRB103 28571 HLH 54952 b
1464	1464
1465	1465
1466	1466	HB3434- 41 -LRB103 28571 HLH 54952 b HB3434 - 41 - LRB103 28571 HLH 54952 b
1467	1467	HB3434 - 41 - LRB103 28571 HLH 54952 b
1468	1468	1 The Department of Commerce and Economic Opportunity shall
1469	1469	2 grant a certificate of exemption under this item (31) to
1470	1470	3 qualified data centers as defined by Section 605-1025 of the
1471	1471	4 Department of Commerce and Economic Opportunity Law of the
1472	1472	5 Civil Administrative Code of Illinois.
1473	1473	6 For the purposes of this item (31):
1474	1474	7 "Data center" means a building or a series of
1475	1475	8 buildings rehabilitated or constructed to house working
1476	1476	9 servers in one physical location or multiple sites within
1477	1477	10 the State of Illinois.
1478	1478	11 "Qualified tangible personal property" means:
1479	1479	12 electrical systems and equipment; climate control and
1480	1480	13 chilling equipment and systems; mechanical systems and
1481	1481	14 equipment; monitoring and secure systems; emergency
1482	1482	15 generators; hardware; computers; servers; data storage
1483	1483	16 devices; network connectivity equipment; racks; cabinets;
1484	1484	17 telecommunications cabling infrastructure; raised floor
1485	1485	18 systems; peripheral components or systems; software;
1486	1486	19 mechanical, electrical, or plumbing systems; battery
1487	1487	20 systems; cooling systems and towers; temperature control
1488	1488	21 systems; other cabling; and other data center
1489	1489	22 infrastructure equipment and systems necessary to operate
1490	1490	23 qualified tangible personal property, including fixtures;
1491	1491	24 and component parts of any of the foregoing, including
1492	1492	25 installation, maintenance, repair, refurbishment, and
1493	1493	26 replacement of qualified tangible personal property to
1494	1494
1495	1495
1496	1496
1497	1497
1498	1498
1499	1499	HB3434 - 41 - LRB103 28571 HLH 54952 b
1500	1500
1501	1501
1502	1502	HB3434- 42 -LRB103 28571 HLH 54952 b HB3434 - 42 - LRB103 28571 HLH 54952 b
1503	1503	HB3434 - 42 - LRB103 28571 HLH 54952 b
1504	1504	1 generate, transform, transmit, distribute, or manage
1505	1505	2 electricity necessary to operate qualified tangible
1506	1506	3 personal property; and all other tangible personal
1507	1507	4 property that is essential to the operations of a computer
1508	1508	5 data center. The term "qualified tangible personal
1509	1509	6 property" also includes building materials physically
1510	1510	7 incorporated in to the qualifying data center. To document
1511	1511	8 the exemption allowed under this Section, the retailer
1512	1512	9 must obtain from the purchaser a copy of the certificate
1513	1513	10 of eligibility issued by the Department of Commerce and
1514	1514	11 Economic Opportunity.
1515	1515	12 This item (31) is exempt from the provisions of Section
1516	1516	13 3-75.
1517	1517	14 (32) Beginning July 1, 2022, breast pumps, breast pump
1518	1518	15 collection and storage supplies, and breast pump kits. This
1519	1519	16 item (32) is exempt from the provisions of Section 3-75. As
1520	1520	17 used in this item (32):
1521	1521	18 "Breast pump" means an electrically controlled or
1522	1522	19 manually controlled pump device designed or marketed to be
1523	1523	20 used to express milk from a human breast during lactation,
1524	1524	21 including the pump device and any battery, AC adapter, or
1525	1525	22 other power supply unit that is used to power the pump
1526	1526	23 device and is packaged and sold with the pump device at the
1527	1527	24 time of sale.
1528	1528	25 "Breast pump collection and storage supplies" means
1529	1529	26 items of tangible personal property designed or marketed
1530	1530
1531	1531
1532	1532
1533	1533
1534	1534
1535	1535	HB3434 - 42 - LRB103 28571 HLH 54952 b
1536	1536
1537	1537
1538	1538	HB3434- 43 -LRB103 28571 HLH 54952 b HB3434 - 43 - LRB103 28571 HLH 54952 b
1539	1539	HB3434 - 43 - LRB103 28571 HLH 54952 b
1540	1540	1 to be used in conjunction with a breast pump to collect
1541	1541	2 milk expressed from a human breast and to store collected
1542	1542	3 milk until it is ready for consumption.
1543	1543	4 "Breast pump collection and storage supplies"
1544	1544	5 includes, but is not limited to: breast shields and breast
1545	1545	6 shield connectors; breast pump tubes and tubing adapters;
1546	1546	7 breast pump valves and membranes; backflow protectors and
1547	1547	8 backflow protector adaptors; bottles and bottle caps
1548	1548	9 specific to the operation of the breast pump; and breast
1549	1549	10 milk storage bags.
1550	1550	11 "Breast pump collection and storage supplies" does not
1551	1551	12 include: (1) bottles and bottle caps not specific to the
1552	1552	13 operation of the breast pump; (2) breast pump travel bags
1553	1553	14 and other similar carrying accessories, including ice
1554	1554	15 packs, labels, and other similar products; (3) breast pump
1555	1555	16 cleaning supplies; (4) nursing bras, bra pads, breast
1556	1556	17 shells, and other similar products; and (5) creams,
1557	1557	18 ointments, and other similar products that relieve
1558	1558	19 breastfeeding-related symptoms or conditions of the
1559	1559	20 breasts or nipples, unless sold as part of a breast pump
1560	1560	21 kit that is pre-packaged by the breast pump manufacturer
1561	1561	22 or distributor.
1562	1562	23 "Breast pump kit" means a kit that: (1) contains no
1563	1563	24 more than a breast pump, breast pump collection and
1564	1564	25 storage supplies, a rechargeable battery for operating the
1565	1565	26 breast pump, a breastmilk cooler, bottle stands, ice
1566	1566
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571	HB3434 - 43 - LRB103 28571 HLH 54952 b
1572	1572
1573	1573
1574	1574	HB3434- 44 -LRB103 28571 HLH 54952 b HB3434 - 44 - LRB103 28571 HLH 54952 b
1575	1575	HB3434 - 44 - LRB103 28571 HLH 54952 b
1576	1576	1 packs, and a breast pump carrying case; and (2) is
1577	1577	2 pre-packaged as a breast pump kit by the breast pump
1578	1578	3 manufacturer or distributor.
1579	1579	4 (33) (32) Tangible personal property sold by or on behalf
1580	1580	5 of the State Treasurer pursuant to the Revised Uniform
1581	1581	6 Unclaimed Property Act. This item (33) (32) is exempt from the
1582	1582	7 provisions of Section 3-75.
1583	1583	8 (34) Tangible personal property for which a certificate of
1584	1584	9 exemption has been issued under Section 2505-810 of the
1585	1585	10 Department of Revenue Law of the Civil Administrative Code of
1586	1586	11 Illinois. This paragraph is exempt from the provisions of
1587	1587	12 Section 3-75.
1588	1588	13 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
1589	1589	14 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1590	1590	15 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1591	1591	16 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
1592	1592	17 Section 20. The Service Occupation Tax Act is amended by
1593	1593	18 changing Section 3-5 as follows:
1594	1594	19 (35 ILCS 115/3-5)
1595	1595	20 Sec. 3-5. Exemptions. The following tangible personal
1596	1596	21 property is exempt from the tax imposed by this Act:
1597	1597	22 (1) Personal property sold by a corporation, society,
1598	1598	23 association, foundation, institution, or organization, other
1599	1599	24 than a limited liability company, that is organized and
1600	1600
1601	1601
1602	1602
1603	1603
1604	1604
1605	1605	HB3434 - 44 - LRB103 28571 HLH 54952 b
1606	1606
1607	1607
1608	1608	HB3434- 45 -LRB103 28571 HLH 54952 b HB3434 - 45 - LRB103 28571 HLH 54952 b
1609	1609	HB3434 - 45 - LRB103 28571 HLH 54952 b
1610	1610	1 operated as a not-for-profit service enterprise for the
1611	1611	2 benefit of persons 65 years of age or older if the personal
1612	1612	3 property was not purchased by the enterprise for the purpose
1613	1613	4 of resale by the enterprise.
1614	1614	5 (2) Personal property purchased by a not-for-profit
1615	1615	6 Illinois county fair association for use in conducting,
1616	1616	7 operating, or promoting the county fair.
1617	1617	8 (3) Personal property purchased by any not-for-profit arts
1618	1618	9 or cultural organization that establishes, by proof required
1619	1619	10 by the Department by rule, that it has received an exemption
1620	1620	11 under Section 501(c)(3) of the Internal Revenue Code and that
1621	1621	12 is organized and operated primarily for the presentation or
1622	1622	13 support of arts or cultural programming, activities, or
1623	1623	14 services. These organizations include, but are not limited to,
1624	1624	15 music and dramatic arts organizations such as symphony
1625	1625	16 orchestras and theatrical groups, arts and cultural service
1626	1626	17 organizations, local arts councils, visual arts organizations,
1627	1627	18 and media arts organizations. On and after July 1, 2001 (the
1628	1628	19 effective date of Public Act 92-35), however, an entity
1629	1629	20 otherwise eligible for this exemption shall not make tax-free
1630	1630	21 purchases unless it has an active identification number issued
1631	1631	22 by the Department.
1632	1632	23 (4) Legal tender, currency, medallions, or gold or silver
1633	1633	24 coinage issued by the State of Illinois, the government of the
1634	1634	25 United States of America, or the government of any foreign
1635	1635	26 country, and bullion.
1636	1636
1637	1637
1638	1638
1639	1639
1640	1640
1641	1641	HB3434 - 45 - LRB103 28571 HLH 54952 b
1642	1642
1643	1643
1644	1644	HB3434- 46 -LRB103 28571 HLH 54952 b HB3434 - 46 - LRB103 28571 HLH 54952 b
1645	1645	HB3434 - 46 - LRB103 28571 HLH 54952 b
1646	1646	1 (5) Until July 1, 2003 and beginning again on September 1,
1647	1647	2 2004 through August 30, 2014, graphic arts machinery and
1648	1648	3 equipment, including repair and replacement parts, both new
1649	1649	4 and used, and including that manufactured on special order or
1650	1650	5 purchased for lease, certified by the purchaser to be used
1651	1651	6 primarily for graphic arts production. Equipment includes
1652	1652	7 chemicals or chemicals acting as catalysts but only if the
1653	1653	8 chemicals or chemicals acting as catalysts effect a direct and
1654	1654	9 immediate change upon a graphic arts product. Beginning on
1655	1655	10 July 1, 2017, graphic arts machinery and equipment is included
1656	1656	11 in the manufacturing and assembling machinery and equipment
1657	1657	12 exemption under Section 2 of this Act.
1658	1658	13 (6) Personal property sold by a teacher-sponsored student
1659	1659	14 organization affiliated with an elementary or secondary school
1660	1660	15 located in Illinois.
1661	1661	16 (7) Farm machinery and equipment, both new and used,
1662	1662	17 including that manufactured on special order, certified by the
1663	1663	18 purchaser to be used primarily for production agriculture or
1664	1664	19 State or federal agricultural programs, including individual
1665	1665	20 replacement parts for the machinery and equipment, including
1666	1666	21 machinery and equipment purchased for lease, and including
1667	1667	22 implements of husbandry defined in Section 1-130 of the
1668	1668	23 Illinois Vehicle Code, farm machinery and agricultural
1669	1669	24 chemical and fertilizer spreaders, and nurse wagons required
1670	1670	25 to be registered under Section 3-809 of the Illinois Vehicle
1671	1671	26 Code, but excluding other motor vehicles required to be
1672	1672
1673	1673
1674	1674
1675	1675
1676	1676
1677	1677	HB3434 - 46 - LRB103 28571 HLH 54952 b
1678	1678
1679	1679
1680	1680	HB3434- 47 -LRB103 28571 HLH 54952 b HB3434 - 47 - LRB103 28571 HLH 54952 b
1681	1681	HB3434 - 47 - LRB103 28571 HLH 54952 b
1682	1682	1 registered under the Illinois Vehicle Code. Horticultural
1683	1683	2 polyhouses or hoop houses used for propagating, growing, or
1684	1684	3 overwintering plants shall be considered farm machinery and
1685	1685	4 equipment under this item (7). Agricultural chemical tender
1686	1686	5 tanks and dry boxes shall include units sold separately from a
1687	1687	6 motor vehicle required to be licensed and units sold mounted
1688	1688	7 on a motor vehicle required to be licensed if the selling price
1689	1689	8 of the tender is separately stated.
1690	1690	9 Farm machinery and equipment shall include precision
1691	1691	10 farming equipment that is installed or purchased to be
1692	1692	11 installed on farm machinery and equipment including, but not
1693	1693	12 limited to, tractors, harvesters, sprayers, planters, seeders,
1694	1694	13 or spreaders. Precision farming equipment includes, but is not
1695	1695	14 limited to, soil testing sensors, computers, monitors,
1696	1696	15 software, global positioning and mapping systems, and other
1697	1697	16 such equipment.
1698	1698	17 Farm machinery and equipment also includes computers,
1699	1699	18 sensors, software, and related equipment used primarily in the
1700	1700	19 computer-assisted operation of production agriculture
1701	1701	20 facilities, equipment, and activities such as, but not limited
1702	1702	21 to, the collection, monitoring, and correlation of animal and
1703	1703	22 crop data for the purpose of formulating animal diets and
1704	1704	23 agricultural chemicals. This item (7) is exempt from the
1705	1705	24 provisions of Section 3-55.
1706	1706	25 (8) Until June 30, 2013, fuel and petroleum products sold
1707	1707	26 to or used by an air common carrier, certified by the carrier
1708	1708
1709	1709
1710	1710
1711	1711
1712	1712
1713	1713	HB3434 - 47 - LRB103 28571 HLH 54952 b
1714	1714
1715	1715
1716	1716	HB3434- 48 -LRB103 28571 HLH 54952 b HB3434 - 48 - LRB103 28571 HLH 54952 b
1717	1717	HB3434 - 48 - LRB103 28571 HLH 54952 b
1718	1718	1 to be used for consumption, shipment, or storage in the
1719	1719	2 conduct of its business as an air common carrier, for a flight
1720	1720	3 destined for or returning from a location or locations outside
1721	1721	4 the United States without regard to previous or subsequent
1722	1722	5 domestic stopovers.
1723	1723	6 Beginning July 1, 2013, fuel and petroleum products sold
1724	1724	7 to or used by an air carrier, certified by the carrier to be
1725	1725	8 used for consumption, shipment, or storage in the conduct of
1726	1726	9 its business as an air common carrier, for a flight that (i) is
1727	1727	10 engaged in foreign trade or is engaged in trade between the
1728	1728	11 United States and any of its possessions and (ii) transports
1729	1729	12 at least one individual or package for hire from the city of
1730	1730	13 origination to the city of final destination on the same
1731	1731	14 aircraft, without regard to a change in the flight number of
1732	1732	15 that aircraft.
1733	1733	16 (9) Proceeds of mandatory service charges separately
1734	1734	17 stated on customers' bills for the purchase and consumption of
1735	1735	18 food and beverages, to the extent that the proceeds of the
1736	1736	19 service charge are in fact turned over as tips or as a
1737	1737	20 substitute for tips to the employees who participate directly
1738	1738	21 in preparing, serving, hosting or cleaning up the food or
1739	1739	22 beverage function with respect to which the service charge is
1740	1740	23 imposed.
1741	1741	24 (10) Until July 1, 2003, oil field exploration, drilling,
1742	1742	25 and production equipment, including (i) rigs and parts of
1743	1743	26 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1744	1744
1745	1745
1746	1746
1747	1747
1748	1748
1749	1749	HB3434 - 48 - LRB103 28571 HLH 54952 b
1750	1750
1751	1751
1752	1752	HB3434- 49 -LRB103 28571 HLH 54952 b HB3434 - 49 - LRB103 28571 HLH 54952 b
1753	1753	HB3434 - 49 - LRB103 28571 HLH 54952 b
1754	1754	1 pipe and tubular goods, including casing and drill strings,
1755	1755	2 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1756	1756	3 lines, (v) any individual replacement part for oil field
1757	1757	4 exploration, drilling, and production equipment, and (vi)
1758	1758	5 machinery and equipment purchased for lease; but excluding
1759	1759	6 motor vehicles required to be registered under the Illinois
1760	1760	7 Vehicle Code.
1761	1761	8 (11) Photoprocessing machinery and equipment, including
1762	1762	9 repair and replacement parts, both new and used, including
1763	1763	10 that manufactured on special order, certified by the purchaser
1764	1764	11 to be used primarily for photoprocessing, and including
1765	1765	12 photoprocessing machinery and equipment purchased for lease.
1766	1766	13 (12) Until July 1, 2028, coal and aggregate exploration,
1767	1767	14 mining, off-highway hauling, processing, maintenance, and
1768	1768	15 reclamation equipment, including replacement parts and
1769	1769	16 equipment, and including equipment purchased for lease, but
1770	1770	17 excluding motor vehicles required to be registered under the
1771	1771	18 Illinois Vehicle Code. The changes made to this Section by
1772	1772	19 Public Act 97-767 apply on and after July 1, 2003, but no claim
1773	1773	20 for credit or refund is allowed on or after August 16, 2013
1774	1774	21 (the effective date of Public Act 98-456) for such taxes paid
1775	1775	22 during the period beginning July 1, 2003 and ending on August
1776	1776	23 16, 2013 (the effective date of Public Act 98-456).
1777	1777	24 (13) Beginning January 1, 1992 and through June 30, 2016,
1778	1778	25 food for human consumption that is to be consumed off the
1779	1779	26 premises where it is sold (other than alcoholic beverages,
1780	1780
1781	1781
1782	1782
1783	1783
1784	1784
1785	1785	HB3434 - 49 - LRB103 28571 HLH 54952 b
1786	1786
1787	1787
1788	1788	HB3434- 50 -LRB103 28571 HLH 54952 b HB3434 - 50 - LRB103 28571 HLH 54952 b
1789	1789	HB3434 - 50 - LRB103 28571 HLH 54952 b
1790	1790	1 soft drinks and food that has been prepared for immediate
1791	1791	2 consumption) and prescription and non-prescription medicines,
1792	1792	3 drugs, medical appliances, and insulin, urine testing
1793	1793	4 materials, syringes, and needles used by diabetics, for human
1794	1794	5 use, when purchased for use by a person receiving medical
1795	1795	6 assistance under Article V of the Illinois Public Aid Code who
1796	1796	7 resides in a licensed long-term care facility, as defined in
1797	1797	8 the Nursing Home Care Act, or in a licensed facility as defined
1798	1798	9 in the ID/DD Community Care Act, the MC/DD Act, or the
1799	1799	10 Specialized Mental Health Rehabilitation Act of 2013.
1800	1800	11 (14) Semen used for artificial insemination of livestock
1801	1801	12 for direct agricultural production.
1802	1802	13 (15) Horses, or interests in horses, registered with and
1803	1803	14 meeting the requirements of any of the Arabian Horse Club
1804	1804	15 Registry of America, Appaloosa Horse Club, American Quarter
1805	1805	16 Horse Association, United States Trotting Association, or
1806	1806	17 Jockey Club, as appropriate, used for purposes of breeding or
1807	1807	18 racing for prizes. This item (15) is exempt from the
1808	1808	19 provisions of Section 3-55, and the exemption provided for
1809	1809	20 under this item (15) applies for all periods beginning May 30,
1810	1810	21 1995, but no claim for credit or refund is allowed on or after
1811	1811	22 January 1, 2008 (the effective date of Public Act 95-88) for
1812	1812	23 such taxes paid during the period beginning May 30, 2000 and
1813	1813	24 ending on January 1, 2008 (the effective date of Public Act
1814	1814	25 95-88).
1815	1815	26 (16) Computers and communications equipment utilized for
1816	1816
1817	1817
1818	1818
1819	1819
1820	1820
1821	1821	HB3434 - 50 - LRB103 28571 HLH 54952 b
1822	1822
1823	1823
1824	1824	HB3434- 51 -LRB103 28571 HLH 54952 b HB3434 - 51 - LRB103 28571 HLH 54952 b
1825	1825	HB3434 - 51 - LRB103 28571 HLH 54952 b
1826	1826	1 any hospital purpose and equipment used in the diagnosis,
1827	1827	2 analysis, or treatment of hospital patients sold to a lessor
1828	1828	3 who leases the equipment, under a lease of one year or longer
1829	1829	4 executed or in effect at the time of the purchase, to a
1830	1830	5 hospital that has been issued an active tax exemption
1831	1831	6 identification number by the Department under Section 1g of
1832	1832	7 the Retailers' Occupation Tax Act.
1833	1833	8 (17) Personal property sold to a lessor who leases the
1834	1834	9 property, under a lease of one year or longer executed or in
1835	1835	10 effect at the time of the purchase, to a governmental body that
1836	1836	11 has been issued an active tax exemption identification number
1837	1837	12 by the Department under Section 1g of the Retailers'
1838	1838	13 Occupation Tax Act.
1839	1839	14 (18) Beginning with taxable years ending on or after
1840	1840	15 December 31, 1995 and ending with taxable years ending on or
1841	1841	16 before December 31, 2004, personal property that is donated
1842	1842	17 for disaster relief to be used in a State or federally declared
1843	1843	18 disaster area in Illinois or bordering Illinois by a
1844	1844	19 manufacturer or retailer that is registered in this State to a
1845	1845	20 corporation, society, association, foundation, or institution
1846	1846	21 that has been issued a sales tax exemption identification
1847	1847	22 number by the Department that assists victims of the disaster
1848	1848	23 who reside within the declared disaster area.
1849	1849	24 (19) Beginning with taxable years ending on or after
1850	1850	25 December 31, 1995 and ending with taxable years ending on or
1851	1851	26 before December 31, 2004, personal property that is used in
1852	1852
1853	1853
1854	1854
1855	1855
1856	1856
1857	1857	HB3434 - 51 - LRB103 28571 HLH 54952 b
1858	1858
1859	1859
1860	1860	HB3434- 52 -LRB103 28571 HLH 54952 b HB3434 - 52 - LRB103 28571 HLH 54952 b
1861	1861	HB3434 - 52 - LRB103 28571 HLH 54952 b
1862	1862	1 the performance of infrastructure repairs in this State,
1863	1863	2 including but not limited to municipal roads and streets,
1864	1864	3 access roads, bridges, sidewalks, waste disposal systems,
1865	1865	4 water and sewer line extensions, water distribution and
1866	1866	5 purification facilities, storm water drainage and retention
1867	1867	6 facilities, and sewage treatment facilities, resulting from a
1868	1868	7 State or federally declared disaster in Illinois or bordering
1869	1869	8 Illinois when such repairs are initiated on facilities located
1870	1870	9 in the declared disaster area within 6 months after the
1871	1871	10 disaster.
1872	1872	11 (20) Beginning July 1, 1999, game or game birds sold at a
1873	1873	12 "game breeding and hunting preserve area" as that term is used
1874	1874	13 in the Wildlife Code. This paragraph is exempt from the
1875	1875	14 provisions of Section 3-55.
1876	1876	15 (21) A motor vehicle, as that term is defined in Section
1877	1877	16 1-146 of the Illinois Vehicle Code, that is donated to a
1878	1878	17 corporation, limited liability company, society, association,
1879	1879	18 foundation, or institution that is determined by the
1880	1880	19 Department to be organized and operated exclusively for
1881	1881	20 educational purposes. For purposes of this exemption, "a
1882	1882	21 corporation, limited liability company, society, association,
1883	1883	22 foundation, or institution organized and operated exclusively
1884	1884	23 for educational purposes" means all tax-supported public
1885	1885	24 schools, private schools that offer systematic instruction in
1886	1886	25 useful branches of learning by methods common to public
1887	1887	26 schools and that compare favorably in their scope and
1888	1888
1889	1889
1890	1890
1891	1891
1892	1892
1893	1893	HB3434 - 52 - LRB103 28571 HLH 54952 b
1894	1894
1895	1895
1896	1896	HB3434- 53 -LRB103 28571 HLH 54952 b HB3434 - 53 - LRB103 28571 HLH 54952 b
1897	1897	HB3434 - 53 - LRB103 28571 HLH 54952 b
1898	1898	1 intensity with the course of study presented in tax-supported
1899	1899	2 schools, and vocational or technical schools or institutes
1900	1900	3 organized and operated exclusively to provide a course of
1901	1901	4 study of not less than 6 weeks duration and designed to prepare
1902	1902	5 individuals to follow a trade or to pursue a manual,
1903	1903	6 technical, mechanical, industrial, business, or commercial
1904	1904	7 occupation.
1905	1905	8 (22) Beginning January 1, 2000, personal property,
1906	1906	9 including food, purchased through fundraising events for the
1907	1907	10 benefit of a public or private elementary or secondary school,
1908	1908	11 a group of those schools, or one or more school districts if
1909	1909	12 the events are sponsored by an entity recognized by the school
1910	1910	13 district that consists primarily of volunteers and includes
1911	1911	14 parents and teachers of the school children. This paragraph
1912	1912	15 does not apply to fundraising events (i) for the benefit of
1913	1913	16 private home instruction or (ii) for which the fundraising
1914	1914	17 entity purchases the personal property sold at the events from
1915	1915	18 another individual or entity that sold the property for the
1916	1916	19 purpose of resale by the fundraising entity and that profits
1917	1917	20 from the sale to the fundraising entity. This paragraph is
1918	1918	21 exempt from the provisions of Section 3-55.
1919	1919	22 (23) Beginning January 1, 2000 and through December 31,
1920	1920	23 2001, new or used automatic vending machines that prepare and
1921	1921	24 serve hot food and beverages, including coffee, soup, and
1922	1922	25 other items, and replacement parts for these machines.
1923	1923	26 Beginning January 1, 2002 and through June 30, 2003, machines
1924	1924
1925	1925
1926	1926
1927	1927
1928	1928
1929	1929	HB3434 - 53 - LRB103 28571 HLH 54952 b
1930	1930
1931	1931
1932	1932	HB3434- 54 -LRB103 28571 HLH 54952 b HB3434 - 54 - LRB103 28571 HLH 54952 b
1933	1933	HB3434 - 54 - LRB103 28571 HLH 54952 b
1934	1934	1 and parts for machines used in commercial, coin-operated
1935	1935	2 amusement and vending business if a use or occupation tax is
1936	1936	3 paid on the gross receipts derived from the use of the
1937	1937	4 commercial, coin-operated amusement and vending machines. This
1938	1938	5 paragraph is exempt from the provisions of Section 3-55.
1939	1939	6 (24) Beginning on August 2, 2001 (the effective date of
1940	1940	7 Public Act 92-227), computers and communications equipment
1941	1941	8 utilized for any hospital purpose and equipment used in the
1942	1942	9 diagnosis, analysis, or treatment of hospital patients sold to
1943	1943	10 a lessor who leases the equipment, under a lease of one year or
1944	1944	11 longer executed or in effect at the time of the purchase, to a
1945	1945	12 hospital that has been issued an active tax exemption
1946	1946	13 identification number by the Department under Section 1g of
1947	1947	14 the Retailers' Occupation Tax Act. This paragraph is exempt
1948	1948	15 from the provisions of Section 3-55.
1949	1949	16 (25) Beginning on August 2, 2001 (the effective date of
1950	1950	17 Public Act 92-227), personal property sold to a lessor who
1951	1951	18 leases the property, under a lease of one year or longer
1952	1952	19 executed or in effect at the time of the purchase, to a
1953	1953	20 governmental body that has been issued an active tax exemption
1954	1954	21 identification number by the Department under Section 1g of
1955	1955	22 the Retailers' Occupation Tax Act. This paragraph is exempt
1956	1956	23 from the provisions of Section 3-55.
1957	1957	24 (26) Beginning on January 1, 2002 and through June 30,
1958	1958	25 2016, tangible personal property purchased from an Illinois
1959	1959	26 retailer by a taxpayer engaged in centralized purchasing
1960	1960
1961	1961
1962	1962
1963	1963
1964	1964
1965	1965	HB3434 - 54 - LRB103 28571 HLH 54952 b
1966	1966
1967	1967
1968	1968	HB3434- 55 -LRB103 28571 HLH 54952 b HB3434 - 55 - LRB103 28571 HLH 54952 b
1969	1969	HB3434 - 55 - LRB103 28571 HLH 54952 b
1970	1970	1 activities in Illinois who will, upon receipt of the property
1971	1971	2 in Illinois, temporarily store the property in Illinois (i)
1972	1972	3 for the purpose of subsequently transporting it outside this
1973	1973	4 State for use or consumption thereafter solely outside this
1974	1974	5 State or (ii) for the purpose of being processed, fabricated,
1975	1975	6 or manufactured into, attached to, or incorporated into other
1976	1976	7 tangible personal property to be transported outside this
1977	1977	8 State and thereafter used or consumed solely outside this
1978	1978	9 State. The Director of Revenue shall, pursuant to rules
1979	1979	10 adopted in accordance with the Illinois Administrative
1980	1980	11 Procedure Act, issue a permit to any taxpayer in good standing
1981	1981	12 with the Department who is eligible for the exemption under
1982	1982	13 this paragraph (26). The permit issued under this paragraph
1983	1983	14 (26) shall authorize the holder, to the extent and in the
1984	1984	15 manner specified in the rules adopted under this Act, to
1985	1985	16 purchase tangible personal property from a retailer exempt
1986	1986	17 from the taxes imposed by this Act. Taxpayers shall maintain
1987	1987	18 all necessary books and records to substantiate the use and
1988	1988	19 consumption of all such tangible personal property outside of
1989	1989	20 the State of Illinois.
1990	1990	21 (27) Beginning January 1, 2008, tangible personal property
1991	1991	22 used in the construction or maintenance of a community water
1992	1992	23 supply, as defined under Section 3.145 of the Environmental
1993	1993	24 Protection Act, that is operated by a not-for-profit
1994	1994	25 corporation that holds a valid water supply permit issued
1995	1995	26 under Title IV of the Environmental Protection Act. This
1996	1996
1997	1997
1998	1998
1999	1999
2000	2000
2001	2001	HB3434 - 55 - LRB103 28571 HLH 54952 b
2002	2002
2003	2003
2004	2004	HB3434- 56 -LRB103 28571 HLH 54952 b HB3434 - 56 - LRB103 28571 HLH 54952 b
2005	2005	HB3434 - 56 - LRB103 28571 HLH 54952 b
2006	2006	1 paragraph is exempt from the provisions of Section 3-55.
2007	2007	2 (28) Tangible personal property sold to a
2008	2008	3 public-facilities corporation, as described in Section
2009	2009	4 11-65-10 of the Illinois Municipal Code, for purposes of
2010	2010	5 constructing or furnishing a municipal convention hall, but
2011	2011	6 only if the legal title to the municipal convention hall is
2012	2012	7 transferred to the municipality without any further
2013	2013	8 consideration by or on behalf of the municipality at the time
2014	2014	9 of the completion of the municipal convention hall or upon the
2015	2015	10 retirement or redemption of any bonds or other debt
2016	2016	11 instruments issued by the public-facilities corporation in
2017	2017	12 connection with the development of the municipal convention
2018	2018	13 hall. This exemption includes existing public-facilities
2019	2019	14 corporations as provided in Section 11-65-25 of the Illinois
2020	2020	15 Municipal Code. This paragraph is exempt from the provisions
2021	2021	16 of Section 3-55.
2022	2022	17 (29) Beginning January 1, 2010 and continuing through
2023	2023	18 December 31, 2024, materials, parts, equipment, components,
2024	2024	19 and furnishings incorporated into or upon an aircraft as part
2025	2025	20 of the modification, refurbishment, completion, replacement,
2026	2026	21 repair, or maintenance of the aircraft. This exemption
2027	2027	22 includes consumable supplies used in the modification,
2028	2028	23 refurbishment, completion, replacement, repair, and
2029	2029	24 maintenance of aircraft, but excludes any materials, parts,
2030	2030	25 equipment, components, and consumable supplies used in the
2031	2031	26 modification, replacement, repair, and maintenance of aircraft
2032	2032
2033	2033
2034	2034
2035	2035
2036	2036
2037	2037	HB3434 - 56 - LRB103 28571 HLH 54952 b
2038	2038
2039	2039
2040	2040	HB3434- 57 -LRB103 28571 HLH 54952 b HB3434 - 57 - LRB103 28571 HLH 54952 b
2041	2041	HB3434 - 57 - LRB103 28571 HLH 54952 b
2042	2042	1 engines or power plants, whether such engines or power plants
2043	2043	2 are installed or uninstalled upon any such aircraft.
2044	2044	3 "Consumable supplies" include, but are not limited to,
2045	2045	4 adhesive, tape, sandpaper, general purpose lubricants,
2046	2046	5 cleaning solution, latex gloves, and protective films. This
2047	2047	6 exemption applies only to the transfer of qualifying tangible
2048	2048	7 personal property incident to the modification, refurbishment,
2049	2049	8 completion, replacement, repair, or maintenance of an aircraft
2050	2050	9 by persons who (i) hold an Air Agency Certificate and are
2051	2051	10 empowered to operate an approved repair station by the Federal
2052	2052	11 Aviation Administration, (ii) have a Class IV Rating, and
2053	2053	12 (iii) conduct operations in accordance with Part 145 of the
2054	2054	13 Federal Aviation Regulations. The exemption does not include
2055	2055	14 aircraft operated by a commercial air carrier providing
2056	2056	15 scheduled passenger air service pursuant to authority issued
2057	2057	16 under Part 121 or Part 129 of the Federal Aviation
2058	2058	17 Regulations. The changes made to this paragraph (29) by Public
2059	2059	18 Act 98-534 are declarative of existing law. It is the intent of
2060	2060	19 the General Assembly that the exemption under this paragraph
2061	2061	20 (29) applies continuously from January 1, 2010 through
2062	2062	21 December 31, 2024; however, no claim for credit or refund is
2063	2063	22 allowed for taxes paid as a result of the disallowance of this
2064	2064	23 exemption on or after January 1, 2015 and prior to February 5,
2065	2065	24 2020 (the effective date of Public Act 101-629) this
2066	2066	25 amendatory Act of the 101st General Assembly.
2067	2067	26 (30) Beginning January 1, 2017 and through December 31,
2068	2068
2069	2069
2070	2070
2071	2071
2072	2072
2073	2073	HB3434 - 57 - LRB103 28571 HLH 54952 b
2074	2074
2075	2075
2076	2076	HB3434- 58 -LRB103 28571 HLH 54952 b HB3434 - 58 - LRB103 28571 HLH 54952 b
2077	2077	HB3434 - 58 - LRB103 28571 HLH 54952 b
2078	2078	1 2026, menstrual pads, tampons, and menstrual cups.
2079	2079	2 (31) Tangible personal property transferred to a purchaser
2080	2080	3 who is exempt from tax by operation of federal law. This
2081	2081	4 paragraph is exempt from the provisions of Section 3-55.
2082	2082	5 (32) Qualified tangible personal property used in the
2083	2083	6 construction or operation of a data center that has been
2084	2084	7 granted a certificate of exemption by the Department of
2085	2085	8 Commerce and Economic Opportunity, whether that tangible
2086	2086	9 personal property is purchased by the owner, operator, or
2087	2087	10 tenant of the data center or by a contractor or subcontractor
2088	2088	11 of the owner, operator, or tenant. Data centers that would
2089	2089	12 have qualified for a certificate of exemption prior to January
2090	2090	13 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
2091	2091	14 General Assembly been in effect, may apply for and obtain an
2092	2092	15 exemption for subsequent purchases of computer equipment or
2093	2093	16 enabling software purchased or leased to upgrade, supplement,
2094	2094	17 or replace computer equipment or enabling software purchased
2095	2095	18 or leased in the original investment that would have
2096	2096	19 qualified.
2097	2097	20 The Department of Commerce and Economic Opportunity shall
2098	2098	21 grant a certificate of exemption under this item (32) to
2099	2099	22 qualified data centers as defined by Section 605-1025 of the
2100	2100	23 Department of Commerce and Economic Opportunity Law of the
2101	2101	24 Civil Administrative Code of Illinois.
2102	2102	25 For the purposes of this item (32):
2103	2103	26 "Data center" means a building or a series of
2104	2104
2105	2105
2106	2106
2107	2107
2108	2108
2109	2109	HB3434 - 58 - LRB103 28571 HLH 54952 b
2110	2110
2111	2111
2112	2112	HB3434- 59 -LRB103 28571 HLH 54952 b HB3434 - 59 - LRB103 28571 HLH 54952 b
2113	2113	HB3434 - 59 - LRB103 28571 HLH 54952 b
2114	2114	1 buildings rehabilitated or constructed to house working
2115	2115	2 servers in one physical location or multiple sites within
2116	2116	3 the State of Illinois.
2117	2117	4 "Qualified tangible personal property" means:
2118	2118	5 electrical systems and equipment; climate control and
2119	2119	6 chilling equipment and systems; mechanical systems and
2120	2120	7 equipment; monitoring and secure systems; emergency
2121	2121	8 generators; hardware; computers; servers; data storage
2122	2122	9 devices; network connectivity equipment; racks; cabinets;
2123	2123	10 telecommunications cabling infrastructure; raised floor
2124	2124	11 systems; peripheral components or systems; software;
2125	2125	12 mechanical, electrical, or plumbing systems; battery
2126	2126	13 systems; cooling systems and towers; temperature control
2127	2127	14 systems; other cabling; and other data center
2128	2128	15 infrastructure equipment and systems necessary to operate
2129	2129	16 qualified tangible personal property, including fixtures;
2130	2130	17 and component parts of any of the foregoing, including
2131	2131	18 installation, maintenance, repair, refurbishment, and
2132	2132	19 replacement of qualified tangible personal property to
2133	2133	20 generate, transform, transmit, distribute, or manage
2134	2134	21 electricity necessary to operate qualified tangible
2135	2135	22 personal property; and all other tangible personal
2136	2136	23 property that is essential to the operations of a computer
2137	2137	24 data center. The term "qualified tangible personal
2138	2138	25 property" also includes building materials physically
2139	2139	26 incorporated in to the qualifying data center. To document
2140	2140
2141	2141
2142	2142
2143	2143
2144	2144
2145	2145	HB3434 - 59 - LRB103 28571 HLH 54952 b
2146	2146
2147	2147
2148	2148	HB3434- 60 -LRB103 28571 HLH 54952 b HB3434 - 60 - LRB103 28571 HLH 54952 b
2149	2149	HB3434 - 60 - LRB103 28571 HLH 54952 b
2150	2150	1 the exemption allowed under this Section, the retailer
2151	2151	2 must obtain from the purchaser a copy of the certificate
2152	2152	3 of eligibility issued by the Department of Commerce and
2153	2153	4 Economic Opportunity.
2154	2154	5 This item (32) is exempt from the provisions of Section
2155	2155	6 3-55.
2156	2156	7 (33) Beginning July 1, 2022, breast pumps, breast pump
2157	2157	8 collection and storage supplies, and breast pump kits. This
2158	2158	9 item (33) is exempt from the provisions of Section 3-55. As
2159	2159	10 used in this item (33):
2160	2160	11 "Breast pump" means an electrically controlled or
2161	2161	12 manually controlled pump device designed or marketed to be
2162	2162	13 used to express milk from a human breast during lactation,
2163	2163	14 including the pump device and any battery, AC adapter, or
2164	2164	15 other power supply unit that is used to power the pump
2165	2165	16 device and is packaged and sold with the pump device at the
2166	2166	17 time of sale.
2167	2167	18 "Breast pump collection and storage supplies" means
2168	2168	19 items of tangible personal property designed or marketed
2169	2169	20 to be used in conjunction with a breast pump to collect
2170	2170	21 milk expressed from a human breast and to store collected
2171	2171	22 milk until it is ready for consumption.
2172	2172	23 "Breast pump collection and storage supplies"
2173	2173	24 includes, but is not limited to: breast shields and breast
2174	2174	25 shield connectors; breast pump tubes and tubing adapters;
2175	2175	26 breast pump valves and membranes; backflow protectors and
2176	2176
2177	2177
2178	2178
2179	2179
2180	2180
2181	2181	HB3434 - 60 - LRB103 28571 HLH 54952 b
2182	2182
2183	2183
2184	2184	HB3434- 61 -LRB103 28571 HLH 54952 b HB3434 - 61 - LRB103 28571 HLH 54952 b
2185	2185	HB3434 - 61 - LRB103 28571 HLH 54952 b
2186	2186	1 backflow protector adaptors; bottles and bottle caps
2187	2187	2 specific to the operation of the breast pump; and breast
2188	2188	3 milk storage bags.
2189	2189	4 "Breast pump collection and storage supplies" does not
2190	2190	5 include: (1) bottles and bottle caps not specific to the
2191	2191	6 operation of the breast pump; (2) breast pump travel bags
2192	2192	7 and other similar carrying accessories, including ice
2193	2193	8 packs, labels, and other similar products; (3) breast pump
2194	2194	9 cleaning supplies; (4) nursing bras, bra pads, breast
2195	2195	10 shells, and other similar products; and (5) creams,
2196	2196	11 ointments, and other similar products that relieve
2197	2197	12 breastfeeding-related symptoms or conditions of the
2198	2198	13 breasts or nipples, unless sold as part of a breast pump
2199	2199	14 kit that is pre-packaged by the breast pump manufacturer
2200	2200	15 or distributor.
2201	2201	16 "Breast pump kit" means a kit that: (1) contains no
2202	2202	17 more than a breast pump, breast pump collection and
2203	2203	18 storage supplies, a rechargeable battery for operating the
2204	2204	19 breast pump, a breastmilk cooler, bottle stands, ice
2205	2205	20 packs, and a breast pump carrying case; and (2) is
2206	2206	21 pre-packaged as a breast pump kit by the breast pump
2207	2207	22 manufacturer or distributor.
2208	2208	23 (34) (33) Tangible personal property sold by or on behalf
2209	2209	24 of the State Treasurer pursuant to the Revised Uniform
2210	2210	25 Unclaimed Property Act. This item (34) (33) is exempt from the
2211	2211	26 provisions of Section 3-55.
2212	2212
2213	2213
2214	2214
2215	2215
2216	2216
2217	2217	HB3434 - 61 - LRB103 28571 HLH 54952 b
2218	2218
2219	2219
2220	2220	HB3434- 62 -LRB103 28571 HLH 54952 b HB3434 - 62 - LRB103 28571 HLH 54952 b
2221	2221	HB3434 - 62 - LRB103 28571 HLH 54952 b
2222	2222	1 (35) Tangible personal property for which a certificate of
2223	2223	2 exemption has been issued under Section 2505-810 of the
2224	2224	3 Department of Revenue Law of the Civil Administrative Code of
2225	2225	4 Illinois. This paragraph is exempt from the provisions of
2226	2226	5 Section 3-55.
2227	2227	6 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
2228	2228	7 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2229	2229	8 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2230	2230	9 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
2231	2231	10 Section 25. The Retailers' Occupation Tax Act is amended
2232	2232	11 by changing Section 2-5 as follows:
2233	2233	12 (35 ILCS 120/2-5)
2234	2234	13 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2235	2235	14 the sale of the following tangible personal property are
2236	2236	15 exempt from the tax imposed by this Act:
2237	2237	16 (1) Farm chemicals.
2238	2238	17 (2) Farm machinery and equipment, both new and used,
2239	2239	18 including that manufactured on special order, certified by
2240	2240	19 the purchaser to be used primarily for production
2241	2241	20 agriculture or State or federal agricultural programs,
2242	2242	21 including individual replacement parts for the machinery
2243	2243	22 and equipment, including machinery and equipment purchased
2244	2244	23 for lease, and including implements of husbandry defined
2245	2245	24 in Section 1-130 of the Illinois Vehicle Code, farm
2246	2246
2247	2247
2248	2248
2249	2249
2250	2250
2251	2251	HB3434 - 62 - LRB103 28571 HLH 54952 b
2252	2252
2253	2253
2254	2254	HB3434- 63 -LRB103 28571 HLH 54952 b HB3434 - 63 - LRB103 28571 HLH 54952 b
2255	2255	HB3434 - 63 - LRB103 28571 HLH 54952 b
2256	2256	1 machinery and agricultural chemical and fertilizer
2257	2257	2 spreaders, and nurse wagons required to be registered
2258	2258	3 under Section 3-809 of the Illinois Vehicle Code, but
2259	2259	4 excluding other motor vehicles required to be registered
2260	2260	5 under the Illinois Vehicle Code. Horticultural polyhouses
2261	2261	6 or hoop houses used for propagating, growing, or
2262	2262	7 overwintering plants shall be considered farm machinery
2263	2263	8 and equipment under this item (2). Agricultural chemical
2264	2264	9 tender tanks and dry boxes shall include units sold
2265	2265	10 separately from a motor vehicle required to be licensed
2266	2266	11 and units sold mounted on a motor vehicle required to be
2267	2267	12 licensed, if the selling price of the tender is separately
2268	2268	13 stated.
2269	2269	14 Farm machinery and equipment shall include precision
2270	2270	15 farming equipment that is installed or purchased to be
2271	2271	16 installed on farm machinery and equipment including, but
2272	2272	17 not limited to, tractors, harvesters, sprayers, planters,
2273	2273	18 seeders, or spreaders. Precision farming equipment
2274	2274	19 includes, but is not limited to, soil testing sensors,
2275	2275	20 computers, monitors, software, global positioning and
2276	2276	21 mapping systems, and other such equipment.
2277	2277	22 Farm machinery and equipment also includes computers,
2278	2278	23 sensors, software, and related equipment used primarily in
2279	2279	24 the computer-assisted operation of production agriculture
2280	2280	25 facilities, equipment, and activities such as, but not
2281	2281	26 limited to, the collection, monitoring, and correlation of
2282	2282
2283	2283
2284	2284
2285	2285
2286	2286
2287	2287	HB3434 - 63 - LRB103 28571 HLH 54952 b
2288	2288
2289	2289
2290	2290	HB3434- 64 -LRB103 28571 HLH 54952 b HB3434 - 64 - LRB103 28571 HLH 54952 b
2291	2291	HB3434 - 64 - LRB103 28571 HLH 54952 b
2292	2292	1 animal and crop data for the purpose of formulating animal
2293	2293	2 diets and agricultural chemicals. This item (2) is exempt
2294	2294	3 from the provisions of Section 2-70.
2295	2295	4 (3) Until July 1, 2003, distillation machinery and
2296	2296	5 equipment, sold as a unit or kit, assembled or installed
2297	2297	6 by the retailer, certified by the user to be used only for
2298	2298	7 the production of ethyl alcohol that will be used for
2299	2299	8 consumption as motor fuel or as a component of motor fuel
2300	2300	9 for the personal use of the user, and not subject to sale
2301	2301	10 or resale.
2302	2302	11 (4) Until July 1, 2003 and beginning again September
2303	2303	12 1, 2004 through August 30, 2014, graphic arts machinery
2304	2304	13 and equipment, including repair and replacement parts,
2305	2305	14 both new and used, and including that manufactured on
2306	2306	15 special order or purchased for lease, certified by the
2307	2307	16 purchaser to be used primarily for graphic arts
2308	2308	17 production. Equipment includes chemicals or chemicals
2309	2309	18 acting as catalysts but only if the chemicals or chemicals
2310	2310	19 acting as catalysts effect a direct and immediate change
2311	2311	20 upon a graphic arts product. Beginning on July 1, 2017,
2312	2312	21 graphic arts machinery and equipment is included in the
2313	2313	22 manufacturing and assembling machinery and equipment
2314	2314	23 exemption under paragraph (14).
2315	2315	24 (5) A motor vehicle that is used for automobile
2316	2316	25 renting, as defined in the Automobile Renting Occupation
2317	2317	26 and Use Tax Act. This paragraph is exempt from the
2318	2318
2319	2319
2320	2320
2321	2321
2322	2322
2323	2323	HB3434 - 64 - LRB103 28571 HLH 54952 b
2324	2324
2325	2325
2326	2326	HB3434- 65 -LRB103 28571 HLH 54952 b HB3434 - 65 - LRB103 28571 HLH 54952 b
2327	2327	HB3434 - 65 - LRB103 28571 HLH 54952 b
2328	2328	1 provisions of Section 2-70.
2329	2329	2 (6) Personal property sold by a teacher-sponsored
2330	2330	3 student organization affiliated with an elementary or
2331	2331	4 secondary school located in Illinois.
2332	2332	5 (7) Until July 1, 2003, proceeds of that portion of
2333	2333	6 the selling price of a passenger car the sale of which is
2334	2334	7 subject to the Replacement Vehicle Tax.
2335	2335	8 (8) Personal property sold to an Illinois county fair
2336	2336	9 association for use in conducting, operating, or promoting
2337	2337	10 the county fair.
2338	2338	11 (9) Personal property sold to a not-for-profit arts or
2339	2339	12 cultural organization that establishes, by proof required
2340	2340	13 by the Department by rule, that it has received an
2341	2341	14 exemption under Section 501(c)(3) of the Internal Revenue
2342	2342	15 Code and that is organized and operated primarily for the
2343	2343	16 presentation or support of arts or cultural programming,
2344	2344	17 activities, or services. These organizations include, but
2345	2345	18 are not limited to, music and dramatic arts organizations
2346	2346	19 such as symphony orchestras and theatrical groups, arts
2347	2347	20 and cultural service organizations, local arts councils,
2348	2348	21 visual arts organizations, and media arts organizations.
2349	2349	22 On and after July 1, 2001 (the effective date of Public Act
2350	2350	23 92-35), however, an entity otherwise eligible for this
2351	2351	24 exemption shall not make tax-free purchases unless it has
2352	2352	25 an active identification number issued by the Department.
2353	2353	26 (10) Personal property sold by a corporation, society,
2354	2354
2355	2355
2356	2356
2357	2357
2358	2358
2359	2359	HB3434 - 65 - LRB103 28571 HLH 54952 b
2360	2360
2361	2361
2362	2362	HB3434- 66 -LRB103 28571 HLH 54952 b HB3434 - 66 - LRB103 28571 HLH 54952 b
2363	2363	HB3434 - 66 - LRB103 28571 HLH 54952 b
2364	2364	1 association, foundation, institution, or organization,
2365	2365	2 other than a limited liability company, that is organized
2366	2366	3 and operated as a not-for-profit service enterprise for
2367	2367	4 the benefit of persons 65 years of age or older if the
2368	2368	5 personal property was not purchased by the enterprise for
2369	2369	6 the purpose of resale by the enterprise.
2370	2370	7 (11) Personal property sold to a governmental body, to
2371	2371	8 a corporation, society, association, foundation, or
2372	2372	9 institution organized and operated exclusively for
2373	2373	10 charitable, religious, or educational purposes, or to a
2374	2374	11 not-for-profit corporation, society, association,
2375	2375	12 foundation, institution, or organization that has no
2376	2376	13 compensated officers or employees and that is organized
2377	2377	14 and operated primarily for the recreation of persons 55
2378	2378	15 years of age or older. A limited liability company may
2379	2379	16 qualify for the exemption under this paragraph only if the
2380	2380	17 limited liability company is organized and operated
2381	2381	18 exclusively for educational purposes. On and after July 1,
2382	2382	19 1987, however, no entity otherwise eligible for this
2383	2383	20 exemption shall make tax-free purchases unless it has an
2384	2384	21 active identification number issued by the Department.
2385	2385	22 (12) (Blank).
2386	2386	23 (12-5) On and after July 1, 2003 and through June 30,
2387	2387	24 2004, motor vehicles of the second division with a gross
2388	2388	25 vehicle weight in excess of 8,000 pounds that are subject
2389	2389	26 to the commercial distribution fee imposed under Section
2390	2390
2391	2391
2392	2392
2393	2393
2394	2394
2395	2395	HB3434 - 66 - LRB103 28571 HLH 54952 b
2396	2396
2397	2397
2398	2398	HB3434- 67 -LRB103 28571 HLH 54952 b HB3434 - 67 - LRB103 28571 HLH 54952 b
2399	2399	HB3434 - 67 - LRB103 28571 HLH 54952 b
2400	2400	1 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2401	2401	2 2004 and through June 30, 2005, the use in this State of
2402	2402	3 motor vehicles of the second division: (i) with a gross
2403	2403	4 vehicle weight rating in excess of 8,000 pounds; (ii) that
2404	2404	5 are subject to the commercial distribution fee imposed
2405	2405	6 under Section 3-815.1 of the Illinois Vehicle Code; and
2406	2406	7 (iii) that are primarily used for commercial purposes.
2407	2407	8 Through June 30, 2005, this exemption applies to repair
2408	2408	9 and replacement parts added after the initial purchase of
2409	2409	10 such a motor vehicle if that motor vehicle is used in a
2410	2410	11 manner that would qualify for the rolling stock exemption
2411	2411	12 otherwise provided for in this Act. For purposes of this
2412	2412	13 paragraph, "used for commercial purposes" means the
2413	2413	14 transportation of persons or property in furtherance of
2414	2414	15 any commercial or industrial enterprise whether for-hire
2415	2415	16 or not.
2416	2416	17 (13) Proceeds from sales to owners, lessors, or
2417	2417	18 shippers of tangible personal property that is utilized by
2418	2418	19 interstate carriers for hire for use as rolling stock
2419	2419	20 moving in interstate commerce and equipment operated by a
2420	2420	21 telecommunications provider, licensed as a common carrier
2421	2421	22 by the Federal Communications Commission, which is
2422	2422	23 permanently installed in or affixed to aircraft moving in
2423	2423	24 interstate commerce.
2424	2424	25 (14) Machinery and equipment that will be used by the
2425	2425	26 purchaser, or a lessee of the purchaser, primarily in the
2426	2426
2427	2427
2428	2428
2429	2429
2430	2430
2431	2431	HB3434 - 67 - LRB103 28571 HLH 54952 b
2432	2432
2433	2433
2434	2434	HB3434- 68 -LRB103 28571 HLH 54952 b HB3434 - 68 - LRB103 28571 HLH 54952 b
2435	2435	HB3434 - 68 - LRB103 28571 HLH 54952 b
2436	2436	1 process of manufacturing or assembling tangible personal
2437	2437	2 property for wholesale or retail sale or lease, whether
2438	2438	3 the sale or lease is made directly by the manufacturer or
2439	2439	4 by some other person, whether the materials used in the
2440	2440	5 process are owned by the manufacturer or some other
2441	2441	6 person, or whether the sale or lease is made apart from or
2442	2442	7 as an incident to the seller's engaging in the service
2443	2443	8 occupation of producing machines, tools, dies, jigs,
2444	2444	9 patterns, gauges, or other similar items of no commercial
2445	2445	10 value on special order for a particular purchaser. The
2446	2446	11 exemption provided by this paragraph (14) does not include
2447	2447	12 machinery and equipment used in (i) the generation of
2448	2448	13 electricity for wholesale or retail sale; (ii) the
2449	2449	14 generation or treatment of natural or artificial gas for
2450	2450	15 wholesale or retail sale that is delivered to customers
2451	2451	16 through pipes, pipelines, or mains; or (iii) the treatment
2452	2452	17 of water for wholesale or retail sale that is delivered to
2453	2453	18 customers through pipes, pipelines, or mains. The
2454	2454	19 provisions of Public Act 98-583 are declaratory of
2455	2455	20 existing law as to the meaning and scope of this
2456	2456	21 exemption. Beginning on July 1, 2017, the exemption
2457	2457	22 provided by this paragraph (14) includes, but is not
2458	2458	23 limited to, graphic arts machinery and equipment, as
2459	2459	24 defined in paragraph (4) of this Section.
2460	2460	25 (15) Proceeds of mandatory service charges separately
2461	2461	26 stated on customers' bills for purchase and consumption of
2462	2462
2463	2463
2464	2464
2465	2465
2466	2466
2467	2467	HB3434 - 68 - LRB103 28571 HLH 54952 b
2468	2468
2469	2469
2470	2470	HB3434- 69 -LRB103 28571 HLH 54952 b HB3434 - 69 - LRB103 28571 HLH 54952 b
2471	2471	HB3434 - 69 - LRB103 28571 HLH 54952 b
2472	2472	1 food and beverages, to the extent that the proceeds of the
2473	2473	2 service charge are in fact turned over as tips or as a
2474	2474	3 substitute for tips to the employees who participate
2475	2475	4 directly in preparing, serving, hosting or cleaning up the
2476	2476	5 food or beverage function with respect to which the
2477	2477	6 service charge is imposed.
2478	2478	7 (16) Tangible personal property sold to a purchaser if
2479	2479	8 the purchaser is exempt from use tax by operation of
2480	2480	9 federal law. This paragraph is exempt from the provisions
2481	2481	10 of Section 2-70.
2482	2482	11 (17) Tangible personal property sold to a common
2483	2483	12 carrier by rail or motor that receives the physical
2484	2484	13 possession of the property in Illinois and that transports
2485	2485	14 the property, or shares with another common carrier in the
2486	2486	15 transportation of the property, out of Illinois on a
2487	2487	16 standard uniform bill of lading showing the seller of the
2488	2488	17 property as the shipper or consignor of the property to a
2489	2489	18 destination outside Illinois, for use outside Illinois.
2490	2490	19 (18) Legal tender, currency, medallions, or gold or
2491	2491	20 silver coinage issued by the State of Illinois, the
2492	2492	21 government of the United States of America, or the
2493	2493	22 government of any foreign country, and bullion.
2494	2494	23 (19) Until July 1, 2003, oil field exploration,
2495	2495	24 drilling, and production equipment, including (i) rigs and
2496	2496	25 parts of rigs, rotary rigs, cable tool rigs, and workover
2497	2497	26 rigs, (ii) pipe and tubular goods, including casing and
2498	2498
2499	2499
2500	2500
2501	2501
2502	2502
2503	2503	HB3434 - 69 - LRB103 28571 HLH 54952 b
2504	2504
2505	2505
2506	2506	HB3434- 70 -LRB103 28571 HLH 54952 b HB3434 - 70 - LRB103 28571 HLH 54952 b
2507	2507	HB3434 - 70 - LRB103 28571 HLH 54952 b
2508	2508	1 drill strings, (iii) pumps and pump-jack units, (iv)
2509	2509	2 storage tanks and flow lines, (v) any individual
2510	2510	3 replacement part for oil field exploration, drilling, and
2511	2511	4 production equipment, and (vi) machinery and equipment
2512	2512	5 purchased for lease; but excluding motor vehicles required
2513	2513	6 to be registered under the Illinois Vehicle Code.
2514	2514	7 (20) Photoprocessing machinery and equipment,
2515	2515	8 including repair and replacement parts, both new and used,
2516	2516	9 including that manufactured on special order, certified by
2517	2517	10 the purchaser to be used primarily for photoprocessing,
2518	2518	11 and including photoprocessing machinery and equipment
2519	2519	12 purchased for lease.
2520	2520	13 (21) Until July 1, 2028, coal and aggregate
2521	2521	14 exploration, mining, off-highway hauling, processing,
2522	2522	15 maintenance, and reclamation equipment, including
2523	2523	16 replacement parts and equipment, and including equipment
2524	2524	17 purchased for lease, but excluding motor vehicles required
2525	2525	18 to be registered under the Illinois Vehicle Code. The
2526	2526	19 changes made to this Section by Public Act 97-767 apply on
2527	2527	20 and after July 1, 2003, but no claim for credit or refund
2528	2528	21 is allowed on or after August 16, 2013 (the effective date
2529	2529	22 of Public Act 98-456) for such taxes paid during the
2530	2530	23 period beginning July 1, 2003 and ending on August 16,
2531	2531	24 2013 (the effective date of Public Act 98-456).
2532	2532	25 (22) Until June 30, 2013, fuel and petroleum products
2533	2533	26 sold to or used by an air carrier, certified by the carrier
2534	2534
2535	2535
2536	2536
2537	2537
2538	2538
2539	2539	HB3434 - 70 - LRB103 28571 HLH 54952 b
2540	2540
2541	2541
2542	2542	HB3434- 71 -LRB103 28571 HLH 54952 b HB3434 - 71 - LRB103 28571 HLH 54952 b
2543	2543	HB3434 - 71 - LRB103 28571 HLH 54952 b
2544	2544	1 to be used for consumption, shipment, or storage in the
2545	2545	2 conduct of its business as an air common carrier, for a
2546	2546	3 flight destined for or returning from a location or
2547	2547	4 locations outside the United States without regard to
2548	2548	5 previous or subsequent domestic stopovers.
2549	2549	6 Beginning July 1, 2013, fuel and petroleum products
2550	2550	7 sold to or used by an air carrier, certified by the carrier
2551	2551	8 to be used for consumption, shipment, or storage in the
2552	2552	9 conduct of its business as an air common carrier, for a
2553	2553	10 flight that (i) is engaged in foreign trade or is engaged
2554	2554	11 in trade between the United States and any of its
2555	2555	12 possessions and (ii) transports at least one individual or
2556	2556	13 package for hire from the city of origination to the city
2557	2557	14 of final destination on the same aircraft, without regard
2558	2558	15 to a change in the flight number of that aircraft.
2559	2559	16 (23) A transaction in which the purchase order is
2560	2560	17 received by a florist who is located outside Illinois, but
2561	2561	18 who has a florist located in Illinois deliver the property
2562	2562	19 to the purchaser or the purchaser's donee in Illinois.
2563	2563	20 (24) Fuel consumed or used in the operation of ships,
2564	2564	21 barges, or vessels that are used primarily in or for the
2565	2565	22 transportation of property or the conveyance of persons
2566	2566	23 for hire on rivers bordering on this State if the fuel is
2567	2567	24 delivered by the seller to the purchaser's barge, ship, or
2568	2568	25 vessel while it is afloat upon that bordering river.
2569	2569	26 (25) Except as provided in item (25-5) of this
2570	2570
2571	2571
2572	2572
2573	2573
2574	2574
2575	2575	HB3434 - 71 - LRB103 28571 HLH 54952 b
2576	2576
2577	2577
2578	2578	HB3434- 72 -LRB103 28571 HLH 54952 b HB3434 - 72 - LRB103 28571 HLH 54952 b
2579	2579	HB3434 - 72 - LRB103 28571 HLH 54952 b
2580	2580	1 Section, a motor vehicle sold in this State to a
2581	2581	2 nonresident even though the motor vehicle is delivered to
2582	2582	3 the nonresident in this State, if the motor vehicle is not
2583	2583	4 to be titled in this State, and if a drive-away permit is
2584	2584	5 issued to the motor vehicle as provided in Section 3-603
2585	2585	6 of the Illinois Vehicle Code or if the nonresident
2586	2586	7 purchaser has vehicle registration plates to transfer to
2587	2587	8 the motor vehicle upon returning to his or her home state.
2588	2588	9 The issuance of the drive-away permit or having the
2589	2589	10 out-of-state registration plates to be transferred is
2590	2590	11 prima facie evidence that the motor vehicle will not be
2591	2591	12 titled in this State.
2592	2592	13 (25-5) The exemption under item (25) does not apply if
2593	2593	14 the state in which the motor vehicle will be titled does
2594	2594	15 not allow a reciprocal exemption for a motor vehicle sold
2595	2595	16 and delivered in that state to an Illinois resident but
2596	2596	17 titled in Illinois. The tax collected under this Act on
2597	2597	18 the sale of a motor vehicle in this State to a resident of
2598	2598	19 another state that does not allow a reciprocal exemption
2599	2599	20 shall be imposed at a rate equal to the state's rate of tax
2600	2600	21 on taxable property in the state in which the purchaser is
2601	2601	22 a resident, except that the tax shall not exceed the tax
2602	2602	23 that would otherwise be imposed under this Act. At the
2603	2603	24 time of the sale, the purchaser shall execute a statement,
2604	2604	25 signed under penalty of perjury, of his or her intent to
2605	2605	26 title the vehicle in the state in which the purchaser is a
2606	2606
2607	2607
2608	2608
2609	2609
2610	2610
2611	2611	HB3434 - 72 - LRB103 28571 HLH 54952 b
2612	2612
2613	2613
2614	2614	HB3434- 73 -LRB103 28571 HLH 54952 b HB3434 - 73 - LRB103 28571 HLH 54952 b
2615	2615	HB3434 - 73 - LRB103 28571 HLH 54952 b
2616	2616	1 resident within 30 days after the sale and of the fact of
2617	2617	2 the payment to the State of Illinois of tax in an amount
2618	2618	3 equivalent to the state's rate of tax on taxable property
2619	2619	4 in his or her state of residence and shall submit the
2620	2620	5 statement to the appropriate tax collection agency in his
2621	2621	6 or her state of residence. In addition, the retailer must
2622	2622	7 retain a signed copy of the statement in his or her
2623	2623	8 records. Nothing in this item shall be construed to
2624	2624	9 require the removal of the vehicle from this state
2625	2625	10 following the filing of an intent to title the vehicle in
2626	2626	11 the purchaser's state of residence if the purchaser titles
2627	2627	12 the vehicle in his or her state of residence within 30 days
2628	2628	13 after the date of sale. The tax collected under this Act in
2629	2629	14 accordance with this item (25-5) shall be proportionately
2630	2630	15 distributed as if the tax were collected at the 6.25%
2631	2631	16 general rate imposed under this Act.
2632	2632	17 (25-7) Beginning on July 1, 2007, no tax is imposed
2633	2633	18 under this Act on the sale of an aircraft, as defined in
2634	2634	19 Section 3 of the Illinois Aeronautics Act, if all of the
2635	2635	20 following conditions are met:
2636	2636	21 (1) the aircraft leaves this State within 15 days
2637	2637	22 after the later of either the issuance of the final
2638	2638	23 billing for the sale of the aircraft, or the
2639	2639	24 authorized approval for return to service, completion
2640	2640	25 of the maintenance record entry, and completion of the
2641	2641	26 test flight and ground test for inspection, as
2642	2642
2643	2643
2644	2644
2645	2645
2646	2646
2647	2647	HB3434 - 73 - LRB103 28571 HLH 54952 b
2648	2648
2649	2649
2650	2650	HB3434- 74 -LRB103 28571 HLH 54952 b HB3434 - 74 - LRB103 28571 HLH 54952 b
2651	2651	HB3434 - 74 - LRB103 28571 HLH 54952 b
2652	2652	1 required by 14 CFR C.F.R. 91.407;
2653	2653	2 (2) the aircraft is not based or registered in
2654	2654	3 this State after the sale of the aircraft; and
2655	2655	4 (3) the seller retains in his or her books and
2656	2656	5 records and provides to the Department a signed and
2657	2657	6 dated certification from the purchaser, on a form
2658	2658	7 prescribed by the Department, certifying that the
2659	2659	8 requirements of this item (25-7) are met. The
2660	2660	9 certificate must also include the name and address of
2661	2661	10 the purchaser, the address of the location where the
2662	2662	11 aircraft is to be titled or registered, the address of
2663	2663	12 the primary physical location of the aircraft, and
2664	2664	13 other information that the Department may reasonably
2665	2665	14 require.
2666	2666	15 For purposes of this item (25-7):
2667	2667	16 "Based in this State" means hangared, stored, or
2668	2668	17 otherwise used, excluding post-sale customizations as
2669	2669	18 defined in this Section, for 10 or more days in each
2670	2670	19 12-month period immediately following the date of the sale
2671	2671	20 of the aircraft.
2672	2672	21 "Registered in this State" means an aircraft
2673	2673	22 registered with the Department of Transportation,
2674	2674	23 Aeronautics Division, or titled or registered with the
2675	2675	24 Federal Aviation Administration to an address located in
2676	2676	25 this State.
2677	2677	26 This paragraph (25-7) is exempt from the provisions of
2678	2678
2679	2679
2680	2680
2681	2681
2682	2682
2683	2683	HB3434 - 74 - LRB103 28571 HLH 54952 b
2684	2684
2685	2685
2686	2686	HB3434- 75 -LRB103 28571 HLH 54952 b HB3434 - 75 - LRB103 28571 HLH 54952 b
2687	2687	HB3434 - 75 - LRB103 28571 HLH 54952 b
2688	2688	1 Section 2-70.
2689	2689	2 (26) Semen used for artificial insemination of
2690	2690	3 livestock for direct agricultural production.
2691	2691	4 (27) Horses, or interests in horses, registered with
2692	2692	5 and meeting the requirements of any of the Arabian Horse
2693	2693	6 Club Registry of America, Appaloosa Horse Club, American
2694	2694	7 Quarter Horse Association, United States Trotting
2695	2695	8 Association, or Jockey Club, as appropriate, used for
2696	2696	9 purposes of breeding or racing for prizes. This item (27)
2697	2697	10 is exempt from the provisions of Section 2-70, and the
2698	2698	11 exemption provided for under this item (27) applies for
2699	2699	12 all periods beginning May 30, 1995, but no claim for
2700	2700	13 credit or refund is allowed on or after January 1, 2008
2701	2701	14 (the effective date of Public Act 95-88) for such taxes
2702	2702	15 paid during the period beginning May 30, 2000 and ending
2703	2703	16 on January 1, 2008 (the effective date of Public Act
2704	2704	17 95-88).
2705	2705	18 (28) Computers and communications equipment utilized
2706	2706	19 for any hospital purpose and equipment used in the
2707	2707	20 diagnosis, analysis, or treatment of hospital patients
2708	2708	21 sold to a lessor who leases the equipment, under a lease of
2709	2709	22 one year or longer executed or in effect at the time of the
2710	2710	23 purchase, to a hospital that has been issued an active tax
2711	2711	24 exemption identification number by the Department under
2712	2712	25 Section 1g of this Act.
2713	2713	26 (29) Personal property sold to a lessor who leases the
2714	2714
2715	2715
2716	2716
2717	2717
2718	2718
2719	2719	HB3434 - 75 - LRB103 28571 HLH 54952 b
2720	2720
2721	2721
2722	2722	HB3434- 76 -LRB103 28571 HLH 54952 b HB3434 - 76 - LRB103 28571 HLH 54952 b
2723	2723	HB3434 - 76 - LRB103 28571 HLH 54952 b
2724	2724	1 property, under a lease of one year or longer executed or
2725	2725	2 in effect at the time of the purchase, to a governmental
2726	2726	3 body that has been issued an active tax exemption
2727	2727	4 identification number by the Department under Section 1g
2728	2728	5 of this Act.
2729	2729	6 (30) Beginning with taxable years ending on or after
2730	2730	7 December 31, 1995 and ending with taxable years ending on
2731	2731	8 or before December 31, 2004, personal property that is
2732	2732	9 donated for disaster relief to be used in a State or
2733	2733	10 federally declared disaster area in Illinois or bordering
2734	2734	11 Illinois by a manufacturer or retailer that is registered
2735	2735	12 in this State to a corporation, society, association,
2736	2736	13 foundation, or institution that has been issued a sales
2737	2737	14 tax exemption identification number by the Department that
2738	2738	15 assists victims of the disaster who reside within the
2739	2739	16 declared disaster area.
2740	2740	17 (31) Beginning with taxable years ending on or after
2741	2741	18 December 31, 1995 and ending with taxable years ending on
2742	2742	19 or before December 31, 2004, personal property that is
2743	2743	20 used in the performance of infrastructure repairs in this
2744	2744	21 State, including but not limited to municipal roads and
2745	2745	22 streets, access roads, bridges, sidewalks, waste disposal
2746	2746	23 systems, water and sewer line extensions, water
2747	2747	24 distribution and purification facilities, storm water
2748	2748	25 drainage and retention facilities, and sewage treatment
2749	2749	26 facilities, resulting from a State or federally declared
2750	2750
2751	2751
2752	2752
2753	2753
2754	2754
2755	2755	HB3434 - 76 - LRB103 28571 HLH 54952 b
2756	2756
2757	2757
2758	2758	HB3434- 77 -LRB103 28571 HLH 54952 b HB3434 - 77 - LRB103 28571 HLH 54952 b
2759	2759	HB3434 - 77 - LRB103 28571 HLH 54952 b
2760	2760	1 disaster in Illinois or bordering Illinois when such
2761	2761	2 repairs are initiated on facilities located in the
2762	2762	3 declared disaster area within 6 months after the disaster.
2763	2763	4 (32) Beginning July 1, 1999, game or game birds sold
2764	2764	5 at a "game breeding and hunting preserve area" as that
2765	2765	6 term is used in the Wildlife Code. This paragraph is
2766	2766	7 exempt from the provisions of Section 2-70.
2767	2767	8 (33) A motor vehicle, as that term is defined in
2768	2768	9 Section 1-146 of the Illinois Vehicle Code, that is
2769	2769	10 donated to a corporation, limited liability company,
2770	2770	11 society, association, foundation, or institution that is
2771	2771	12 determined by the Department to be organized and operated
2772	2772	13 exclusively for educational purposes. For purposes of this
2773	2773	14 exemption, "a corporation, limited liability company,
2774	2774	15 society, association, foundation, or institution organized
2775	2775	16 and operated exclusively for educational purposes" means
2776	2776	17 all tax-supported public schools, private schools that
2777	2777	18 offer systematic instruction in useful branches of
2778	2778	19 learning by methods common to public schools and that
2779	2779	20 compare favorably in their scope and intensity with the
2780	2780	21 course of study presented in tax-supported schools, and
2781	2781	22 vocational or technical schools or institutes organized
2782	2782	23 and operated exclusively to provide a course of study of
2783	2783	24 not less than 6 weeks duration and designed to prepare
2784	2784	25 individuals to follow a trade or to pursue a manual,
2785	2785	26 technical, mechanical, industrial, business, or commercial
2786	2786
2787	2787
2788	2788
2789	2789
2790	2790
2791	2791	HB3434 - 77 - LRB103 28571 HLH 54952 b
2792	2792
2793	2793
2794	2794	HB3434- 78 -LRB103 28571 HLH 54952 b HB3434 - 78 - LRB103 28571 HLH 54952 b
2795	2795	HB3434 - 78 - LRB103 28571 HLH 54952 b
2796	2796	1 occupation.
2797	2797	2 (34) Beginning January 1, 2000, personal property,
2798	2798	3 including food, purchased through fundraising events for
2799	2799	4 the benefit of a public or private elementary or secondary
2800	2800	5 school, a group of those schools, or one or more school
2801	2801	6 districts if the events are sponsored by an entity
2802	2802	7 recognized by the school district that consists primarily
2803	2803	8 of volunteers and includes parents and teachers of the
2804	2804	9 school children. This paragraph does not apply to
2805	2805	10 fundraising events (i) for the benefit of private home
2806	2806	11 instruction or (ii) for which the fundraising entity
2807	2807	12 purchases the personal property sold at the events from
2808	2808	13 another individual or entity that sold the property for
2809	2809	14 the purpose of resale by the fundraising entity and that
2810	2810	15 profits from the sale to the fundraising entity. This
2811	2811	16 paragraph is exempt from the provisions of Section 2-70.
2812	2812	17 (35) Beginning January 1, 2000 and through December
2813	2813	18 31, 2001, new or used automatic vending machines that
2814	2814	19 prepare and serve hot food and beverages, including
2815	2815	20 coffee, soup, and other items, and replacement parts for
2816	2816	21 these machines. Beginning January 1, 2002 and through June
2817	2817	22 30, 2003, machines and parts for machines used in
2818	2818	23 commercial, coin-operated amusement and vending business
2819	2819	24 if a use or occupation tax is paid on the gross receipts
2820	2820	25 derived from the use of the commercial, coin-operated
2821	2821	26 amusement and vending machines. This paragraph is exempt
2822	2822
2823	2823
2824	2824
2825	2825
2826	2826
2827	2827	HB3434 - 78 - LRB103 28571 HLH 54952 b
2828	2828
2829	2829
2830	2830	HB3434- 79 -LRB103 28571 HLH 54952 b HB3434 - 79 - LRB103 28571 HLH 54952 b
2831	2831	HB3434 - 79 - LRB103 28571 HLH 54952 b
2832	2832	1 from the provisions of Section 2-70.
2833	2833	2 (35-5) Beginning August 23, 2001 and through June 30,
2834	2834	3 2016, food for human consumption that is to be consumed
2835	2835	4 off the premises where it is sold (other than alcoholic
2836	2836	5 beverages, soft drinks, and food that has been prepared
2837	2837	6 for immediate consumption) and prescription and
2838	2838	7 nonprescription medicines, drugs, medical appliances, and
2839	2839	8 insulin, urine testing materials, syringes, and needles
2840	2840	9 used by diabetics, for human use, when purchased for use
2841	2841	10 by a person receiving medical assistance under Article V
2842	2842	11 of the Illinois Public Aid Code who resides in a licensed
2843	2843	12 long-term care facility, as defined in the Nursing Home
2844	2844	13 Care Act, or a licensed facility as defined in the ID/DD
2845	2845	14 Community Care Act, the MC/DD Act, or the Specialized
2846	2846	15 Mental Health Rehabilitation Act of 2013.
2847	2847	16 (36) Beginning August 2, 2001, computers and
2848	2848	17 communications equipment utilized for any hospital purpose
2849	2849	18 and equipment used in the diagnosis, analysis, or
2850	2850	19 treatment of hospital patients sold to a lessor who leases
2851	2851	20 the equipment, under a lease of one year or longer
2852	2852	21 executed or in effect at the time of the purchase, to a
2853	2853	22 hospital that has been issued an active tax exemption
2854	2854	23 identification number by the Department under Section 1g
2855	2855	24 of this Act. This paragraph is exempt from the provisions
2856	2856	25 of Section 2-70.
2857	2857	26 (37) Beginning August 2, 2001, personal property sold
2858	2858
2859	2859
2860	2860
2861	2861
2862	2862
2863	2863	HB3434 - 79 - LRB103 28571 HLH 54952 b
2864	2864
2865	2865
2866	2866	HB3434- 80 -LRB103 28571 HLH 54952 b HB3434 - 80 - LRB103 28571 HLH 54952 b
2867	2867	HB3434 - 80 - LRB103 28571 HLH 54952 b
2868	2868	1 to a lessor who leases the property, under a lease of one
2869	2869	2 year or longer executed or in effect at the time of the
2870	2870	3 purchase, to a governmental body that has been issued an
2871	2871	4 active tax exemption identification number by the
2872	2872	5 Department under Section 1g of this Act. This paragraph is
2873	2873	6 exempt from the provisions of Section 2-70.
2874	2874	7 (38) Beginning on January 1, 2002 and through June 30,
2875	2875	8 2016, tangible personal property purchased from an
2876	2876	9 Illinois retailer by a taxpayer engaged in centralized
2877	2877	10 purchasing activities in Illinois who will, upon receipt
2878	2878	11 of the property in Illinois, temporarily store the
2879	2879	12 property in Illinois (i) for the purpose of subsequently
2880	2880	13 transporting it outside this State for use or consumption
2881	2881	14 thereafter solely outside this State or (ii) for the
2882	2882	15 purpose of being processed, fabricated, or manufactured
2883	2883	16 into, attached to, or incorporated into other tangible
2884	2884	17 personal property to be transported outside this State and
2885	2885	18 thereafter used or consumed solely outside this State. The
2886	2886	19 Director of Revenue shall, pursuant to rules adopted in
2887	2887	20 accordance with the Illinois Administrative Procedure Act,
2888	2888	21 issue a permit to any taxpayer in good standing with the
2889	2889	22 Department who is eligible for the exemption under this
2890	2890	23 paragraph (38). The permit issued under this paragraph
2891	2891	24 (38) shall authorize the holder, to the extent and in the
2892	2892	25 manner specified in the rules adopted under this Act, to
2893	2893	26 purchase tangible personal property from a retailer exempt
2894	2894
2895	2895
2896	2896
2897	2897
2898	2898
2899	2899	HB3434 - 80 - LRB103 28571 HLH 54952 b
2900	2900
2901	2901
2902	2902	HB3434- 81 -LRB103 28571 HLH 54952 b HB3434 - 81 - LRB103 28571 HLH 54952 b
2903	2903	HB3434 - 81 - LRB103 28571 HLH 54952 b
2904	2904	1 from the taxes imposed by this Act. Taxpayers shall
2905	2905	2 maintain all necessary books and records to substantiate
2906	2906	3 the use and consumption of all such tangible personal
2907	2907	4 property outside of the State of Illinois.
2908	2908	5 (39) Beginning January 1, 2008, tangible personal
2909	2909	6 property used in the construction or maintenance of a
2910	2910	7 community water supply, as defined under Section 3.145 of
2911	2911	8 the Environmental Protection Act, that is operated by a
2912	2912	9 not-for-profit corporation that holds a valid water supply
2913	2913	10 permit issued under Title IV of the Environmental
2914	2914	11 Protection Act. This paragraph is exempt from the
2915	2915	12 provisions of Section 2-70.
2916	2916	13 (40) Beginning January 1, 2010 and continuing through
2917	2917	14 December 31, 2024, materials, parts, equipment,
2918	2918	15 components, and furnishings incorporated into or upon an
2919	2919	16 aircraft as part of the modification, refurbishment,
2920	2920	17 completion, replacement, repair, or maintenance of the
2921	2921	18 aircraft. This exemption includes consumable supplies used
2922	2922	19 in the modification, refurbishment, completion,
2923	2923	20 replacement, repair, and maintenance of aircraft, but
2924	2924	21 excludes any materials, parts, equipment, components, and
2925	2925	22 consumable supplies used in the modification, replacement,
2926	2926	23 repair, and maintenance of aircraft engines or power
2927	2927	24 plants, whether such engines or power plants are installed
2928	2928	25 or uninstalled upon any such aircraft. "Consumable
2929	2929	26 supplies" include, but are not limited to, adhesive, tape,
2930	2930
2931	2931
2932	2932
2933	2933
2934	2934
2935	2935	HB3434 - 81 - LRB103 28571 HLH 54952 b
2936	2936
2937	2937
2938	2938	HB3434- 82 -LRB103 28571 HLH 54952 b HB3434 - 82 - LRB103 28571 HLH 54952 b
2939	2939	HB3434 - 82 - LRB103 28571 HLH 54952 b
2940	2940	1 sandpaper, general purpose lubricants, cleaning solution,
2941	2941	2 latex gloves, and protective films. This exemption applies
2942	2942	3 only to the sale of qualifying tangible personal property
2943	2943	4 to persons who modify, refurbish, complete, replace, or
2944	2944	5 maintain an aircraft and who (i) hold an Air Agency
2945	2945	6 Certificate and are empowered to operate an approved
2946	2946	7 repair station by the Federal Aviation Administration,
2947	2947	8 (ii) have a Class IV Rating, and (iii) conduct operations
2948	2948	9 in accordance with Part 145 of the Federal Aviation
2949	2949	10 Regulations. The exemption does not include aircraft
2950	2950	11 operated by a commercial air carrier providing scheduled
2951	2951	12 passenger air service pursuant to authority issued under
2952	2952	13 Part 121 or Part 129 of the Federal Aviation Regulations.
2953	2953	14 The changes made to this paragraph (40) by Public Act
2954	2954	15 98-534 are declarative of existing law. It is the intent
2955	2955	16 of the General Assembly that the exemption under this
2956	2956	17 paragraph (40) applies continuously from January 1, 2010
2957	2957	18 through December 31, 2024; however, no claim for credit or
2958	2958	19 refund is allowed for taxes paid as a result of the
2959	2959	20 disallowance of this exemption on or after January 1, 2015
2960	2960	21 and prior to February 5, 2020 (the effective date of
2961	2961	22 Public Act 101-629) this amendatory Act of the 101st
2962	2962	23 General Assembly.
2963	2963	24 (41) Tangible personal property sold to a
2964	2964	25 public-facilities corporation, as described in Section
2965	2965	26 11-65-10 of the Illinois Municipal Code, for purposes of
2966	2966
2967	2967
2968	2968
2969	2969
2970	2970
2971	2971	HB3434 - 82 - LRB103 28571 HLH 54952 b
2972	2972
2973	2973
2974	2974	HB3434- 83 -LRB103 28571 HLH 54952 b HB3434 - 83 - LRB103 28571 HLH 54952 b
2975	2975	HB3434 - 83 - LRB103 28571 HLH 54952 b
2976	2976	1 constructing or furnishing a municipal convention hall,
2977	2977	2 but only if the legal title to the municipal convention
2978	2978	3 hall is transferred to the municipality without any
2979	2979	4 further consideration by or on behalf of the municipality
2980	2980	5 at the time of the completion of the municipal convention
2981	2981	6 hall or upon the retirement or redemption of any bonds or
2982	2982	7 other debt instruments issued by the public-facilities
2983	2983	8 corporation in connection with the development of the
2984	2984	9 municipal convention hall. This exemption includes
2985	2985	10 existing public-facilities corporations as provided in
2986	2986	11 Section 11-65-25 of the Illinois Municipal Code. This
2987	2987	12 paragraph is exempt from the provisions of Section 2-70.
2988	2988	13 (42) Beginning January 1, 2017 and through December
2989	2989	14 31, 2026, menstrual pads, tampons, and menstrual cups.
2990	2990	15 (43) Merchandise that is subject to the Rental
2991	2991	16 Purchase Agreement Occupation and Use Tax. The purchaser
2992	2992	17 must certify that the item is purchased to be rented
2993	2993	18 subject to a rental purchase agreement, as defined in the
2994	2994	19 Rental Purchase Agreement Act, and provide proof of
2995	2995	20 registration under the Rental Purchase Agreement
2996	2996	21 Occupation and Use Tax Act. This paragraph is exempt from
2997	2997	22 the provisions of Section 2-70.
2998	2998	23 (44) Qualified tangible personal property used in the
2999	2999	24 construction or operation of a data center that has been
3000	3000	25 granted a certificate of exemption by the Department of
3001	3001	26 Commerce and Economic Opportunity, whether that tangible
3002	3002
3003	3003
3004	3004
3005	3005
3006	3006
3007	3007	HB3434 - 83 - LRB103 28571 HLH 54952 b
3008	3008
3009	3009
3010	3010	HB3434- 84 -LRB103 28571 HLH 54952 b HB3434 - 84 - LRB103 28571 HLH 54952 b
3011	3011	HB3434 - 84 - LRB103 28571 HLH 54952 b
3012	3012	1 personal property is purchased by the owner, operator, or
3013	3013	2 tenant of the data center or by a contractor or
3014	3014	3 subcontractor of the owner, operator, or tenant. Data
3015	3015	4 centers that would have qualified for a certificate of
3016	3016	5 exemption prior to January 1, 2020 had Public Act 101-31
3017	3017	6 this amendatory Act of the 101st General Assembly been in
3018	3018	7 effect, may apply for and obtain an exemption for
3019	3019	8 subsequent purchases of computer equipment or enabling
3020	3020	9 software purchased or leased to upgrade, supplement, or
3021	3021	10 replace computer equipment or enabling software purchased
3022	3022	11 or leased in the original investment that would have
3023	3023	12 qualified.
3024	3024	13 The Department of Commerce and Economic Opportunity
3025	3025	14 shall grant a certificate of exemption under this item
3026	3026	15 (44) to qualified data centers as defined by Section
3027	3027	16 605-1025 of the Department of Commerce and Economic
3028	3028	17 Opportunity Law of the Civil Administrative Code of
3029	3029	18 Illinois.
3030	3030	19 For the purposes of this item (44):
3031	3031	20 "Data center" means a building or a series of
3032	3032	21 buildings rehabilitated or constructed to house
3033	3033	22 working servers in one physical location or multiple
3034	3034	23 sites within the State of Illinois.
3035	3035	24 "Qualified tangible personal property" means:
3036	3036	25 electrical systems and equipment; climate control and
3037	3037	26 chilling equipment and systems; mechanical systems and
3038	3038
3039	3039
3040	3040
3041	3041
3042	3042
3043	3043	HB3434 - 84 - LRB103 28571 HLH 54952 b
3044	3044
3045	3045
3046	3046	HB3434- 85 -LRB103 28571 HLH 54952 b HB3434 - 85 - LRB103 28571 HLH 54952 b
3047	3047	HB3434 - 85 - LRB103 28571 HLH 54952 b
3048	3048	1 equipment; monitoring and secure systems; emergency
3049	3049	2 generators; hardware; computers; servers; data storage
3050	3050	3 devices; network connectivity equipment; racks;
3051	3051	4 cabinets; telecommunications cabling infrastructure;
3052	3052	5 raised floor systems; peripheral components or
3053	3053	6 systems; software; mechanical, electrical, or plumbing
3054	3054	7 systems; battery systems; cooling systems and towers;
3055	3055	8 temperature control systems; other cabling; and other
3056	3056	9 data center infrastructure equipment and systems
3057	3057	10 necessary to operate qualified tangible personal
3058	3058	11 property, including fixtures; and component parts of
3059	3059	12 any of the foregoing, including installation,
3060	3060	13 maintenance, repair, refurbishment, and replacement of
3061	3061	14 qualified tangible personal property to generate,
3062	3062	15 transform, transmit, distribute, or manage electricity
3063	3063	16 necessary to operate qualified tangible personal
3064	3064	17 property; and all other tangible personal property
3065	3065	18 that is essential to the operations of a computer data
3066	3066	19 center. The term "qualified tangible personal
3067	3067	20 property" also includes building materials physically
3068	3068	21 incorporated into the qualifying data center. To
3069	3069	22 document the exemption allowed under this Section, the
3070	3070	23 retailer must obtain from the purchaser a copy of the
3071	3071	24 certificate of eligibility issued by the Department of
3072	3072	25 Commerce and Economic Opportunity.
3073	3073	26 This item (44) is exempt from the provisions of
3074	3074
3075	3075
3076	3076
3077	3077
3078	3078
3079	3079	HB3434 - 85 - LRB103 28571 HLH 54952 b
3080	3080
3081	3081
3082	3082	HB3434- 86 -LRB103 28571 HLH 54952 b HB3434 - 86 - LRB103 28571 HLH 54952 b
3083	3083	HB3434 - 86 - LRB103 28571 HLH 54952 b
3084	3084	1 Section 2-70.
3085	3085	2 (45) Beginning January 1, 2020 and through December
3086	3086	3 31, 2020, sales of tangible personal property made by a
3087	3087	4 marketplace seller over a marketplace for which tax is due
3088	3088	5 under this Act but for which use tax has been collected and
3089	3089	6 remitted to the Department by a marketplace facilitator
3090	3090	7 under Section 2d of the Use Tax Act are exempt from tax
3091	3091	8 under this Act. A marketplace seller claiming this
3092	3092	9 exemption shall maintain books and records demonstrating
3093	3093	10 that the use tax on such sales has been collected and
3094	3094	11 remitted by a marketplace facilitator. Marketplace sellers
3095	3095	12 that have properly remitted tax under this Act on such
3096	3096	13 sales may file a claim for credit as provided in Section 6
3097	3097	14 of this Act. No claim is allowed, however, for such taxes
3098	3098	15 for which a credit or refund has been issued to the
3099	3099	16 marketplace facilitator under the Use Tax Act, or for
3100	3100	17 which the marketplace facilitator has filed a claim for
3101	3101	18 credit or refund under the Use Tax Act.
3102	3102	19 (46) Beginning July 1, 2022, breast pumps, breast pump
3103	3103	20 collection and storage supplies, and breast pump kits.
3104	3104	21 This item (46) is exempt from the provisions of Section
3105	3105	22 2-70. As used in this item (46):
3106	3106	23 "Breast pump" means an electrically controlled or
3107	3107	24 manually controlled pump device designed or marketed to be
3108	3108	25 used to express milk from a human breast during lactation,
3109	3109	26 including the pump device and any battery, AC adapter, or
3110	3110
3111	3111
3112	3112
3113	3113
3114	3114
3115	3115	HB3434 - 86 - LRB103 28571 HLH 54952 b
3116	3116
3117	3117
3118	3118	HB3434- 87 -LRB103 28571 HLH 54952 b HB3434 - 87 - LRB103 28571 HLH 54952 b
3119	3119	HB3434 - 87 - LRB103 28571 HLH 54952 b
3120	3120	1 other power supply unit that is used to power the pump
3121	3121	2 device and is packaged and sold with the pump device at the
3122	3122	3 time of sale.
3123	3123	4 "Breast pump collection and storage supplies" means
3124	3124	5 items of tangible personal property designed or marketed
3125	3125	6 to be used in conjunction with a breast pump to collect
3126	3126	7 milk expressed from a human breast and to store collected
3127	3127	8 milk until it is ready for consumption.
3128	3128	9 "Breast pump collection and storage supplies"
3129	3129	10 includes, but is not limited to: breast shields and breast
3130	3130	11 shield connectors; breast pump tubes and tubing adapters;
3131	3131	12 breast pump valves and membranes; backflow protectors and
3132	3132	13 backflow protector adaptors; bottles and bottle caps
3133	3133	14 specific to the operation of the breast pump; and breast
3134	3134	15 milk storage bags.
3135	3135	16 "Breast pump collection and storage supplies" does not
3136	3136	17 include: (1) bottles and bottle caps not specific to the
3137	3137	18 operation of the breast pump; (2) breast pump travel bags
3138	3138	19 and other similar carrying accessories, including ice
3139	3139	20 packs, labels, and other similar products; (3) breast pump
3140	3140	21 cleaning supplies; (4) nursing bras, bra pads, breast
3141	3141	22 shells, and other similar products; and (5) creams,
3142	3142	23 ointments, and other similar products that relieve
3143	3143	24 breastfeeding-related symptoms or conditions of the
3144	3144	25 breasts or nipples, unless sold as part of a breast pump
3145	3145	26 kit that is pre-packaged by the breast pump manufacturer
3146	3146
3147	3147
3148	3148
3149	3149
3150	3150
3151	3151	HB3434 - 87 - LRB103 28571 HLH 54952 b
3152	3152
3153	3153
3154	3154	HB3434- 88 -LRB103 28571 HLH 54952 b HB3434 - 88 - LRB103 28571 HLH 54952 b
3155	3155	HB3434 - 88 - LRB103 28571 HLH 54952 b
3156	3156	1 or distributor.
3157	3157	2 "Breast pump kit" means a kit that: (1) contains no
3158	3158	3 more than a breast pump, breast pump collection and
3159	3159	4 storage supplies, a rechargeable battery for operating the
3160	3160	5 breast pump, a breastmilk cooler, bottle stands, ice
3161	3161	6 packs, and a breast pump carrying case; and (2) is
3162	3162	7 pre-packaged as a breast pump kit by the breast pump
3163	3163	8 manufacturer or distributor.
3164	3164	9 (47) (46) Tangible personal property sold by or on
3165	3165	10 behalf of the State Treasurer pursuant to the Revised
3166	3166	11 Uniform Unclaimed Property Act. This item (47) (46) is
3167	3167	12 exempt from the provisions of Section 2-70.
3168	3168	13 (48) Tangible personal property for which a
3169	3169	14 certificate of exemption has been issued under Section
3170	3170	15 2505-810 of the Department of Revenue Law of the Civil
3171	3171	16 Administrative Code of Illinois. This paragraph is exempt
3172	3172	17 from the provisions of Section 2-70.
3173	3173	18 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
3174	3174	19 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
3175	3175	20 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
3176	3176	21 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
3177	3177	22 eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
3178	3178	23 Section 30. The Counties Code is amended by adding Section
3179	3179	24 5-1188 as follows:
3180	3180
3181	3181
3182	3182
3183	3183
3184	3184
3185	3185	HB3434 - 88 - LRB103 28571 HLH 54952 b
3186	3186
3187	3187
3188	3188	HB3434- 89 -LRB103 28571 HLH 54952 b HB3434 - 89 - LRB103 28571 HLH 54952 b
3189	3189	HB3434 - 89 - LRB103 28571 HLH 54952 b
3190	3190	1 (55 ILCS 5/5-1188 new)
3191	3191	2 Sec. 5-1188. Exemption for materials, equipment, or
3192	3192	3 supplies of a bid. Tangible personal property for which a
3193	3193	4 certificate of exemption has been issued under Section
3194	3194	5 2505-810 of the Department of Revenue Law of the Civil
3195	3195	6 Administrative Code of Illinois is exempt from any use or
3196	3196	7 occupation tax imposed by a county under this Code.
3197	3197	8 Section 35. The Illinois Municipal Code is amended by
3198	3198	9 adding Section 8-1-19 as follows:
3199	3199	10 (65 ILCS 5/8-1-19 new)
3200	3200	11 Sec. 8-1-19. Exemption for materials, equipment, or
3201	3201	12 supplies of a bid. Tangible personal property for which a
3202	3202	13 certificate of exemption has been issued under Section
3203	3203	14 2505-810 of the Department of Revenue Law of the Civil
3204	3204	15 Administrative Code of Illinois is exempt from any use or
3205	3205	16 occupation tax imposed by a municipality under this Code.
3206	3206	17 Section 40. The Civic Center Code is amended by adding
3207	3207	18 Section 245-13 as follows:
3208	3208	19 (70 ILCS 200/245-13 new)
3209	3209	20 Sec. 245-13. Exemption for materials, equipment, or
3210	3210	21 supplies of a bid. Tangible personal property for which a
3211	3211	22 certificate of exemption has been issued under Section
3212	3212
3213	3213
3214	3214
3215	3215
3216	3216
3217	3217	HB3434 - 89 - LRB103 28571 HLH 54952 b
3218	3218
3219	3219
3220	3220	HB3434- 90 -LRB103 28571 HLH 54952 b HB3434 - 90 - LRB103 28571 HLH 54952 b
3221	3221	HB3434 - 90 - LRB103 28571 HLH 54952 b
3222	3222	1 2505-810 of the Department of Revenue Law of the Civil
3223	3223	2 Administrative Code of Illinois is exempt from any use or
3224	3224	3 occupation tax imposed under this Article.
3225	3225	4 Section 45. The Metropolitan Pier and Exposition Authority
3226	3226	5 Act is amended by adding Section 13.4 as follows:
3227	3227	6 (70 ILCS 210/13.4 new)
3228	3228	7 Sec. 13.4. Exemption for materials, equipment, or supplies
3229	3229	8 of a bid. Tangible personal property for which a certificate
3230	3230	9 of exemption has been issued under Section 2505-810 of the
3231	3231	10 Department of Revenue Law of the Civil Administrative Code of
3232	3232	11 Illinois is exempt from any use or occupation tax imposed
3233	3233	12 under this Act.
3234	3234	13 Section 50. The Flood Prevention District Act is amended
3235	3235	14 by adding Section 27 as follows:
3236	3236	15 (70 ILCS 750/27 new)
3237	3237	16 Sec. 27. Exemption for materials, equipment, or supplies
3238	3238	17 of a bid. Tangible personal property for which a certificate
3239	3239	18 of exemption has been issued under Section 2505-810 of the
3240	3240	19 Department of Revenue Law of the Civil Administrative Code of
3241	3241	20 Illinois is exempt from any use or occupation tax imposed
3242	3242	21 under this Act.
3243	3243
3244	3244
3245	3245
3246	3246
3247	3247
3248	3248	HB3434 - 90 - LRB103 28571 HLH 54952 b
3249	3249
3250	3250
3251	3251	HB3434- 91 -LRB103 28571 HLH 54952 b HB3434 - 91 - LRB103 28571 HLH 54952 b
3252	3252	HB3434 - 91 - LRB103 28571 HLH 54952 b
3253	3253	1 Section 55. The Metro-East Park and Recreation District
3254	3254	2 Act is amended by adding Section 32 as follows:
3255	3255	3 (70 ILCS 1605/32 new)
3256	3256	4 Sec. 32. Exemption for materials, equipment, or supplies
3257	3257	5 of a bid. Tangible personal property for which a certificate
3258	3258	6 of exemption has been issued under Section 2505-810 of the
3259	3259	7 Department of Revenue Law of the Civil Administrative Code of
3260	3260	8 Illinois is exempt from any use or occupation tax imposed
3261	3261	9 under this Act.
3262	3262	10 Section 60. The Local Mass Transit District Act is amended
3263	3263	11 by adding Section 5.7 as follows:
3264	3264	12 (70 ILCS 3610/5.7 new)
3265	3265	13 Sec. 5.7. Exemption for materials, equipment, or supplies
3266	3266	14 of a bid. Tangible personal property for which a certificate
3267	3267	15 of exemption has been issued under Section 2505-810 of the
3268	3268	16 Department of Revenue Law of the Civil Administrative Code of
3269	3269	17 Illinois is exempt from any use or occupation tax imposed
3270	3270	18 under this Act.
3271	3271	19 Section 65. The Regional Transportation Authority Act is
3272	3272	20 amended by adding Section 4.17 as follows:
3273	3273	21 (70 ILCS 3615/4.17 new)
3274	3274
3275	3275
3276	3276
3277	3277
3278	3278
3279	3279	HB3434 - 91 - LRB103 28571 HLH 54952 b
3280	3280
3281	3281
3282	3282	HB3434- 92 -LRB103 28571 HLH 54952 b HB3434 - 92 - LRB103 28571 HLH 54952 b
3283	3283	HB3434 - 92 - LRB103 28571 HLH 54952 b
3284	3284	1 Sec. 4.17. Exemption for materials, equipment, or supplies
3285	3285	2 of a bid. Tangible personal property for which a certificate
3286	3286	3 of exemption has been issued under Section 2505-810 of the
3287	3287	4 Department of Revenue Law of the Civil Administrative Code of
3288	3288	5 Illinois is exempt from any use or occupation tax imposed
3289	3289	6 under this Act.
3290	3290	7 Section 70. The Water Commission Act of 1985 is amended by
3291	3291	8 adding Section 4.5 as follows:
3292	3292	9 (70 ILCS 3720/4.5 new)
3293	3293	10 Sec. 4.5. Exemption for materials, equipment, or supplies
3294	3294	11 of a bid. Tangible personal property for which a certificate
3295	3295	12 of exemption has been issued under Section 2505-810 of the
3296	3296	13 Department of Revenue Law of the Civil Administrative Code of
3297	3297	14 Illinois is exempt from any use or occupation tax imposed
3298	3298	15 under this Act.
3299	3299	16 Section 99. Effective date. This Act takes effect upon
3300	3300	17 becoming law.
3301	3301	HB3434- 93 -LRB103 28571 HLH 54952 b 1 INDEX 2 Statutes amended in order of appearance HB3434- 93 -LRB103 28571 HLH 54952 b HB3434 - 93 - LRB103 28571 HLH 54952 b 1 INDEX 2 Statutes amended in order of appearance
3302	3302	HB3434- 93 -LRB103 28571 HLH 54952 b HB3434 - 93 - LRB103 28571 HLH 54952 b
3303	3303	HB3434 - 93 - LRB103 28571 HLH 54952 b
3304	3304	1 INDEX
3305	3305	2 Statutes amended in order of appearance
3306	3306
3307	3307
3308	3308
3309	3309
3310	3310
3311	3311	HB3434 - 92 - LRB103 28571 HLH 54952 b
3312	3312
3313	3313
3314	3314
3315	3315	HB3434- 93 -LRB103 28571 HLH 54952 b HB3434 - 93 - LRB103 28571 HLH 54952 b
3316	3316	HB3434 - 93 - LRB103 28571 HLH 54952 b
3317	3317	1 INDEX
3318	3318	2 Statutes amended in order of appearance
3319	3319
3320	3320
3321	3321
3322	3322
3323	3323
3324	3324	HB3434 - 93 - LRB103 28571 HLH 54952 b