Illinois 2023-2024 Regular Session

Illinois House Bill HB3477 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3477 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts. Effective immediately. LRB103 27010 HLH 53377 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3477 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts. Effective immediately. LRB103 27010 HLH 53377 b LRB103 27010 HLH 53377 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3477 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10
4	4	35 ILCS 105/3-5
5	5	35 ILCS 105/3-10
6	6	35 ILCS 110/3-5
7	7	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
8	8	35 ILCS 115/3-5
9	9	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
10	10	35 ILCS 120/2-5
11	11	35 ILCS 120/2-10
12	12	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts. Effective immediately.
13	13	LRB103 27010 HLH 53377 b LRB103 27010 HLH 53377 b
14	14	LRB103 27010 HLH 53377 b
15	15	A BILL FOR
16	16	HB3477LRB103 27010 HLH 53377 b HB3477 LRB103 27010 HLH 53377 b
17	17	HB3477 LRB103 27010 HLH 53377 b
18	18	1 AN ACT concerning revenue.
19	19	2 Be it enacted by the People of the State of Illinois,
20	20	3 represented in the General Assembly:
21	21	4 Section 5. The Use Tax Act is amended by changing Sections
22	22	5 3-5 and 3-10 as follows:
23	23	6 (35 ILCS 105/3-5)
24	24	7 Sec. 3-5. Exemptions. Use of the following tangible
25	25	8 personal property is exempt from the tax imposed by this Act:
26	26	9 (1) Personal property purchased from a corporation,
27	27	10 society, association, foundation, institution, or
28	28	11 organization, other than a limited liability company, that is
29	29	12 organized and operated as a not-for-profit service enterprise
30	30	13 for the benefit of persons 65 years of age or older if the
31	31	14 personal property was not purchased by the enterprise for the
32	32	15 purpose of resale by the enterprise.
33	33	16 (2) Personal property purchased by a not-for-profit
34	34	17 Illinois county fair association for use in conducting,
35	35	18 operating, or promoting the county fair.
36	36	19 (3) Personal property purchased by a not-for-profit arts
37	37	20 or cultural organization that establishes, by proof required
38	38	21 by the Department by rule, that it has received an exemption
39	39	22 under Section 501(c)(3) of the Internal Revenue Code and that
40	40	23 is organized and operated primarily for the presentation or
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44	44	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3477 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
45	45	35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10
46	46	35 ILCS 105/3-5
47	47	35 ILCS 105/3-10
48	48	35 ILCS 110/3-5
49	49	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
50	50	35 ILCS 115/3-5
51	51	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
52	52	35 ILCS 120/2-5
53	53	35 ILCS 120/2-10
54	54	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts. Effective immediately.
55	55	LRB103 27010 HLH 53377 b LRB103 27010 HLH 53377 b
56	56	LRB103 27010 HLH 53377 b
57	57	A BILL FOR
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63	63	35 ILCS 105/3-5
64	64	35 ILCS 105/3-10
65	65	35 ILCS 110/3-5
66	66	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
67	67	35 ILCS 115/3-5
68	68	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
69	69	35 ILCS 120/2-5
70	70	35 ILCS 120/2-10
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89	89	1 support of arts or cultural programming, activities, or
90	90	2 services. These organizations include, but are not limited to,
91	91	3 music and dramatic arts organizations such as symphony
92	92	4 orchestras and theatrical groups, arts and cultural service
93	93	5 organizations, local arts councils, visual arts organizations,
94	94	6 and media arts organizations. On and after July 1, 2001 (the
95	95	7 effective date of Public Act 92-35), however, an entity
96	96	8 otherwise eligible for this exemption shall not make tax-free
97	97	9 purchases unless it has an active identification number issued
98	98	10 by the Department.
99	99	11 (4) Personal property purchased by a governmental body, by
100	100	12 a corporation, society, association, foundation, or
101	101	13 institution organized and operated exclusively for charitable,
102	102	14 religious, or educational purposes, or by a not-for-profit
103	103	15 corporation, society, association, foundation, institution, or
104	104	16 organization that has no compensated officers or employees and
105	105	17 that is organized and operated primarily for the recreation of
106	106	18 persons 55 years of age or older. A limited liability company
107	107	19 may qualify for the exemption under this paragraph only if the
108	108	20 limited liability company is organized and operated
109	109	21 exclusively for educational purposes. On and after July 1,
110	110	22 1987, however, no entity otherwise eligible for this exemption
111	111	23 shall make tax-free purchases unless it has an active
112	112	24 exemption identification number issued by the Department.
113	113	25 (5) Until July 1, 2003, a passenger car that is a
114	114	26 replacement vehicle to the extent that the purchase price of
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125	125	1 the car is subject to the Replacement Vehicle Tax.
126	126	2 (6) Until July 1, 2003 and beginning again on September 1,
127	127	3 2004 through August 30, 2014, graphic arts machinery and
128	128	4 equipment, including repair and replacement parts, both new
129	129	5 and used, and including that manufactured on special order,
130	130	6 certified by the purchaser to be used primarily for graphic
131	131	7 arts production, and including machinery and equipment
132	132	8 purchased for lease. Equipment includes chemicals or chemicals
133	133	9 acting as catalysts but only if the chemicals or chemicals
134	134	10 acting as catalysts effect a direct and immediate change upon
135	135	11 a graphic arts product. Beginning on July 1, 2017, graphic
136	136	12 arts machinery and equipment is included in the manufacturing
137	137	13 and assembling machinery and equipment exemption under
138	138	14 paragraph (18).
139	139	15 (7) Farm chemicals.
140	140	16 (8) Legal tender, currency, medallions, or gold or silver
141	141	17 coinage issued by the State of Illinois, the government of the
142	142	18 United States of America, or the government of any foreign
143	143	19 country, and bullion.
144	144	20 (9) Personal property purchased from a teacher-sponsored
145	145	21 student organization affiliated with an elementary or
146	146	22 secondary school located in Illinois.
147	147	23 (10) A motor vehicle that is used for automobile renting,
148	148	24 as defined in the Automobile Renting Occupation and Use Tax
149	149	25 Act.
150	150	26 (11) Farm machinery and equipment, both new and used,
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161	161	1 including that manufactured on special order, certified by the
162	162	2 purchaser to be used primarily for production agriculture or
163	163	3 State or federal agricultural programs, including individual
164	164	4 replacement parts for the machinery and equipment, including
165	165	5 machinery and equipment purchased for lease, and including
166	166	6 implements of husbandry defined in Section 1-130 of the
167	167	7 Illinois Vehicle Code, farm machinery and agricultural
168	168	8 chemical and fertilizer spreaders, and nurse wagons required
169	169	9 to be registered under Section 3-809 of the Illinois Vehicle
170	170	10 Code, but excluding other motor vehicles required to be
171	171	11 registered under the Illinois Vehicle Code. Horticultural
172	172	12 polyhouses or hoop houses used for propagating, growing, or
173	173	13 overwintering plants shall be considered farm machinery and
174	174	14 equipment under this item (11). Agricultural chemical tender
175	175	15 tanks and dry boxes shall include units sold separately from a
176	176	16 motor vehicle required to be licensed and units sold mounted
177	177	17 on a motor vehicle required to be licensed if the selling price
178	178	18 of the tender is separately stated.
179	179	19 Farm machinery and equipment shall include precision
180	180	20 farming equipment that is installed or purchased to be
181	181	21 installed on farm machinery and equipment including, but not
182	182	22 limited to, tractors, harvesters, sprayers, planters, seeders,
183	183	23 or spreaders. Precision farming equipment includes, but is not
184	184	24 limited to, soil testing sensors, computers, monitors,
185	185	25 software, global positioning and mapping systems, and other
186	186	26 such equipment.
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197	197	1 Farm machinery and equipment also includes computers,
198	198	2 sensors, software, and related equipment used primarily in the
199	199	3 computer-assisted operation of production agriculture
200	200	4 facilities, equipment, and activities such as, but not limited
201	201	5 to, the collection, monitoring, and correlation of animal and
202	202	6 crop data for the purpose of formulating animal diets and
203	203	7 agricultural chemicals. This item (11) is exempt from the
204	204	8 provisions of Section 3-90.
205	205	9 (12) Until June 30, 2013, fuel and petroleum products sold
206	206	10 to or used by an air common carrier, certified by the carrier
207	207	11 to be used for consumption, shipment, or storage in the
208	208	12 conduct of its business as an air common carrier, for a flight
209	209	13 destined for or returning from a location or locations outside
210	210	14 the United States without regard to previous or subsequent
211	211	15 domestic stopovers.
212	212	16 Beginning July 1, 2013, fuel and petroleum products sold
213	213	17 to or used by an air carrier, certified by the carrier to be
214	214	18 used for consumption, shipment, or storage in the conduct of
215	215	19 its business as an air common carrier, for a flight that (i) is
216	216	20 engaged in foreign trade or is engaged in trade between the
217	217	21 United States and any of its possessions and (ii) transports
218	218	22 at least one individual or package for hire from the city of
219	219	23 origination to the city of final destination on the same
220	220	24 aircraft, without regard to a change in the flight number of
221	221	25 that aircraft.
222	222	26 (13) Proceeds of mandatory service charges separately
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233	233	1 stated on customers' bills for the purchase and consumption of
234	234	2 food and beverages purchased at retail from a retailer, to the
235	235	3 extent that the proceeds of the service charge are in fact
236	236	4 turned over as tips or as a substitute for tips to the
237	237	5 employees who participate directly in preparing, serving,
238	238	6 hosting or cleaning up the food or beverage function with
239	239	7 respect to which the service charge is imposed.
240	240	8 (14) Until July 1, 2003, oil field exploration, drilling,
241	241	9 and production equipment, including (i) rigs and parts of
242	242	10 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
243	243	11 pipe and tubular goods, including casing and drill strings,
244	244	12 (iii) pumps and pump-jack units, (iv) storage tanks and flow
245	245	13 lines, (v) any individual replacement part for oil field
246	246	14 exploration, drilling, and production equipment, and (vi)
247	247	15 machinery and equipment purchased for lease; but excluding
248	248	16 motor vehicles required to be registered under the Illinois
249	249	17 Vehicle Code.
250	250	18 (15) Photoprocessing machinery and equipment, including
251	251	19 repair and replacement parts, both new and used, including
252	252	20 that manufactured on special order, certified by the purchaser
253	253	21 to be used primarily for photoprocessing, and including
254	254	22 photoprocessing machinery and equipment purchased for lease.
255	255	23 (16) Until July 1, 2028, coal and aggregate exploration,
256	256	24 mining, off-highway hauling, processing, maintenance, and
257	257	25 reclamation equipment, including replacement parts and
258	258	26 equipment, and including equipment purchased for lease, but
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269	269	1 excluding motor vehicles required to be registered under the
270	270	2 Illinois Vehicle Code. The changes made to this Section by
271	271	3 Public Act 97-767 apply on and after July 1, 2003, but no claim
272	272	4 for credit or refund is allowed on or after August 16, 2013
273	273	5 (the effective date of Public Act 98-456) for such taxes paid
274	274	6 during the period beginning July 1, 2003 and ending on August
275	275	7 16, 2013 (the effective date of Public Act 98-456).
276	276	8 (17) Until July 1, 2003, distillation machinery and
277	277	9 equipment, sold as a unit or kit, assembled or installed by the
278	278	10 retailer, certified by the user to be used only for the
279	279	11 production of ethyl alcohol that will be used for consumption
280	280	12 as motor fuel or as a component of motor fuel for the personal
281	281	13 use of the user, and not subject to sale or resale.
282	282	14 (18) Manufacturing and assembling machinery and equipment
283	283	15 used primarily in the process of manufacturing or assembling
284	284	16 tangible personal property for wholesale or retail sale or
285	285	17 lease, whether that sale or lease is made directly by the
286	286	18 manufacturer or by some other person, whether the materials
287	287	19 used in the process are owned by the manufacturer or some other
288	288	20 person, or whether that sale or lease is made apart from or as
289	289	21 an incident to the seller's engaging in the service occupation
290	290	22 of producing machines, tools, dies, jigs, patterns, gauges, or
291	291	23 other similar items of no commercial value on special order
292	292	24 for a particular purchaser. The exemption provided by this
293	293	25 paragraph (18) includes production related tangible personal
294	294	26 property, as defined in Section 3-50, purchased on or after
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305	305	1 July 1, 2019. The exemption provided by this paragraph (18)
306	306	2 does not include machinery and equipment used in (i) the
307	307	3 generation of electricity for wholesale or retail sale; (ii)
308	308	4 the generation or treatment of natural or artificial gas for
309	309	5 wholesale or retail sale that is delivered to customers
310	310	6 through pipes, pipelines, or mains; or (iii) the treatment of
311	311	7 water for wholesale or retail sale that is delivered to
312	312	8 customers through pipes, pipelines, or mains. The provisions
313	313	9 of Public Act 98-583 are declaratory of existing law as to the
314	314	10 meaning and scope of this exemption. Beginning on July 1,
315	315	11 2017, the exemption provided by this paragraph (18) includes,
316	316	12 but is not limited to, graphic arts machinery and equipment,
317	317	13 as defined in paragraph (6) of this Section.
318	318	14 (19) Personal property delivered to a purchaser or
319	319	15 purchaser's donee inside Illinois when the purchase order for
320	320	16 that personal property was received by a florist located
321	321	17 outside Illinois who has a florist located inside Illinois
322	322	18 deliver the personal property.
323	323	19 (20) Semen used for artificial insemination of livestock
324	324	20 for direct agricultural production.
325	325	21 (21) Horses, or interests in horses, registered with and
326	326	22 meeting the requirements of any of the Arabian Horse Club
327	327	23 Registry of America, Appaloosa Horse Club, American Quarter
328	328	24 Horse Association, United States Trotting Association, or
329	329	25 Jockey Club, as appropriate, used for purposes of breeding or
330	330	26 racing for prizes. This item (21) is exempt from the
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341	341	1 provisions of Section 3-90, and the exemption provided for
342	342	2 under this item (21) applies for all periods beginning May 30,
343	343	3 1995, but no claim for credit or refund is allowed on or after
344	344	4 January 1, 2008 for such taxes paid during the period
345	345	5 beginning May 30, 2000 and ending on January 1, 2008.
346	346	6 (22) Computers and communications equipment utilized for
347	347	7 any hospital purpose and equipment used in the diagnosis,
348	348	8 analysis, or treatment of hospital patients purchased by a
349	349	9 lessor who leases the equipment, under a lease of one year or
350	350	10 longer executed or in effect at the time the lessor would
351	351	11 otherwise be subject to the tax imposed by this Act, to a
352	352	12 hospital that has been issued an active tax exemption
353	353	13 identification number by the Department under Section 1g of
354	354	14 the Retailers' Occupation Tax Act. If the equipment is leased
355	355	15 in a manner that does not qualify for this exemption or is used
356	356	16 in any other non-exempt manner, the lessor shall be liable for
357	357	17 the tax imposed under this Act or the Service Use Tax Act, as
358	358	18 the case may be, based on the fair market value of the property
359	359	19 at the time the non-qualifying use occurs. No lessor shall
360	360	20 collect or attempt to collect an amount (however designated)
361	361	21 that purports to reimburse that lessor for the tax imposed by
362	362	22 this Act or the Service Use Tax Act, as the case may be, if the
363	363	23 tax has not been paid by the lessor. If a lessor improperly
364	364	24 collects any such amount from the lessee, the lessee shall
365	365	25 have a legal right to claim a refund of that amount from the
366	366	26 lessor. If, however, that amount is not refunded to the lessee
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377	377	1 for any reason, the lessor is liable to pay that amount to the
378	378	2 Department.
379	379	3 (23) Personal property purchased by a lessor who leases
380	380	4 the property, under a lease of one year or longer executed or
381	381	5 in effect at the time the lessor would otherwise be subject to
382	382	6 the tax imposed by this Act, to a governmental body that has
383	383	7 been issued an active sales tax exemption identification
384	384	8 number by the Department under Section 1g of the Retailers'
385	385	9 Occupation Tax Act. If the property is leased in a manner that
386	386	10 does not qualify for this exemption or used in any other
387	387	11 non-exempt manner, the lessor shall be liable for the tax
388	388	12 imposed under this Act or the Service Use Tax Act, as the case
389	389	13 may be, based on the fair market value of the property at the
390	390	14 time the non-qualifying use occurs. No lessor shall collect or
391	391	15 attempt to collect an amount (however designated) that
392	392	16 purports to reimburse that lessor for the tax imposed by this
393	393	17 Act or the Service Use Tax Act, as the case may be, if the tax
394	394	18 has not been paid by the lessor. If a lessor improperly
395	395	19 collects any such amount from the lessee, the lessee shall
396	396	20 have a legal right to claim a refund of that amount from the
397	397	21 lessor. If, however, that amount is not refunded to the lessee
398	398	22 for any reason, the lessor is liable to pay that amount to the
399	399	23 Department.
400	400	24 (24) Beginning with taxable years ending on or after
401	401	25 December 31, 1995 and ending with taxable years ending on or
402	402	26 before December 31, 2004, personal property that is donated
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413	413	1 for disaster relief to be used in a State or federally declared
414	414	2 disaster area in Illinois or bordering Illinois by a
415	415	3 manufacturer or retailer that is registered in this State to a
416	416	4 corporation, society, association, foundation, or institution
417	417	5 that has been issued a sales tax exemption identification
418	418	6 number by the Department that assists victims of the disaster
419	419	7 who reside within the declared disaster area.
420	420	8 (25) Beginning with taxable years ending on or after
421	421	9 December 31, 1995 and ending with taxable years ending on or
422	422	10 before December 31, 2004, personal property that is used in
423	423	11 the performance of infrastructure repairs in this State,
424	424	12 including but not limited to municipal roads and streets,
425	425	13 access roads, bridges, sidewalks, waste disposal systems,
426	426	14 water and sewer line extensions, water distribution and
427	427	15 purification facilities, storm water drainage and retention
428	428	16 facilities, and sewage treatment facilities, resulting from a
429	429	17 State or federally declared disaster in Illinois or bordering
430	430	18 Illinois when such repairs are initiated on facilities located
431	431	19 in the declared disaster area within 6 months after the
432	432	20 disaster.
433	433	21 (26) Beginning July 1, 1999, game or game birds purchased
434	434	22 at a "game breeding and hunting preserve area" as that term is
435	435	23 used in the Wildlife Code. This paragraph is exempt from the
436	436	24 provisions of Section 3-90.
437	437	25 (27) A motor vehicle, as that term is defined in Section
438	438	26 1-146 of the Illinois Vehicle Code, that is donated to a
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445	445
446	446
447	447	HB3477- 12 -LRB103 27010 HLH 53377 b HB3477 - 12 - LRB103 27010 HLH 53377 b
448	448	HB3477 - 12 - LRB103 27010 HLH 53377 b
449	449	1 corporation, limited liability company, society, association,
450	450	2 foundation, or institution that is determined by the
451	451	3 Department to be organized and operated exclusively for
452	452	4 educational purposes. For purposes of this exemption, "a
453	453	5 corporation, limited liability company, society, association,
454	454	6 foundation, or institution organized and operated exclusively
455	455	7 for educational purposes" means all tax-supported public
456	456	8 schools, private schools that offer systematic instruction in
457	457	9 useful branches of learning by methods common to public
458	458	10 schools and that compare favorably in their scope and
459	459	11 intensity with the course of study presented in tax-supported
460	460	12 schools, and vocational or technical schools or institutes
461	461	13 organized and operated exclusively to provide a course of
462	462	14 study of not less than 6 weeks duration and designed to prepare
463	463	15 individuals to follow a trade or to pursue a manual,
464	464	16 technical, mechanical, industrial, business, or commercial
465	465	17 occupation.
466	466	18 (28) Beginning January 1, 2000, personal property,
467	467	19 including food, purchased through fundraising events for the
468	468	20 benefit of a public or private elementary or secondary school,
469	469	21 a group of those schools, or one or more school districts if
470	470	22 the events are sponsored by an entity recognized by the school
471	471	23 district that consists primarily of volunteers and includes
472	472	24 parents and teachers of the school children. This paragraph
473	473	25 does not apply to fundraising events (i) for the benefit of
474	474	26 private home instruction or (ii) for which the fundraising
475	475
476	476
477	477
478	478
479	479
480	480	HB3477 - 12 - LRB103 27010 HLH 53377 b
481	481
482	482
483	483	HB3477- 13 -LRB103 27010 HLH 53377 b HB3477 - 13 - LRB103 27010 HLH 53377 b
484	484	HB3477 - 13 - LRB103 27010 HLH 53377 b
485	485	1 entity purchases the personal property sold at the events from
486	486	2 another individual or entity that sold the property for the
487	487	3 purpose of resale by the fundraising entity and that profits
488	488	4 from the sale to the fundraising entity. This paragraph is
489	489	5 exempt from the provisions of Section 3-90.
490	490	6 (29) Beginning January 1, 2000 and through December 31,
491	491	7 2001, new or used automatic vending machines that prepare and
492	492	8 serve hot food and beverages, including coffee, soup, and
493	493	9 other items, and replacement parts for these machines.
494	494	10 Beginning January 1, 2002 and through June 30, 2003, machines
495	495	11 and parts for machines used in commercial, coin-operated
496	496	12 amusement and vending business if a use or occupation tax is
497	497	13 paid on the gross receipts derived from the use of the
498	498	14 commercial, coin-operated amusement and vending machines. This
499	499	15 paragraph is exempt from the provisions of Section 3-90.
500	500	16 (30) Beginning January 1, 2001 and through June 30, 2016,
501	501	17 food for human consumption that is to be consumed off the
502	502	18 premises where it is sold (other than alcoholic beverages,
503	503	19 soft drinks, and food that has been prepared for immediate
504	504	20 consumption) and prescription and nonprescription medicines,
505	505	21 drugs, medical appliances, and insulin, urine testing
506	506	22 materials, syringes, and needles used by diabetics, for human
507	507	23 use, when purchased for use by a person receiving medical
508	508	24 assistance under Article V of the Illinois Public Aid Code who
509	509	25 resides in a licensed long-term care facility, as defined in
510	510	26 the Nursing Home Care Act, or in a licensed facility as defined
511	511
512	512
513	513
514	514
515	515
516	516	HB3477 - 13 - LRB103 27010 HLH 53377 b
517	517
518	518
519	519	HB3477- 14 -LRB103 27010 HLH 53377 b HB3477 - 14 - LRB103 27010 HLH 53377 b
520	520	HB3477 - 14 - LRB103 27010 HLH 53377 b
521	521	1 in the ID/DD Community Care Act, the MC/DD Act, or the
522	522	2 Specialized Mental Health Rehabilitation Act of 2013.
523	523	3 (31) Beginning on August 2, 2001 (the effective date of
524	524	4 Public Act 92-227), computers and communications equipment
525	525	5 utilized for any hospital purpose and equipment used in the
526	526	6 diagnosis, analysis, or treatment of hospital patients
527	527	7 purchased by a lessor who leases the equipment, under a lease
528	528	8 of one year or longer executed or in effect at the time the
529	529	9 lessor would otherwise be subject to the tax imposed by this
530	530	10 Act, to a hospital that has been issued an active tax exemption
531	531	11 identification number by the Department under Section 1g of
532	532	12 the Retailers' Occupation Tax Act. If the equipment is leased
533	533	13 in a manner that does not qualify for this exemption or is used
534	534	14 in any other nonexempt manner, the lessor shall be liable for
535	535	15 the tax imposed under this Act or the Service Use Tax Act, as
536	536	16 the case may be, based on the fair market value of the property
537	537	17 at the time the nonqualifying use occurs. No lessor shall
538	538	18 collect or attempt to collect an amount (however designated)
539	539	19 that purports to reimburse that lessor for the tax imposed by
540	540	20 this Act or the Service Use Tax Act, as the case may be, if the
541	541	21 tax has not been paid by the lessor. If a lessor improperly
542	542	22 collects any such amount from the lessee, the lessee shall
543	543	23 have a legal right to claim a refund of that amount from the
544	544	24 lessor. If, however, that amount is not refunded to the lessee
545	545	25 for any reason, the lessor is liable to pay that amount to the
546	546	26 Department. This paragraph is exempt from the provisions of
547	547
548	548
549	549
550	550
551	551
552	552	HB3477 - 14 - LRB103 27010 HLH 53377 b
553	553
554	554
555	555	HB3477- 15 -LRB103 27010 HLH 53377 b HB3477 - 15 - LRB103 27010 HLH 53377 b
556	556	HB3477 - 15 - LRB103 27010 HLH 53377 b
557	557	1 Section 3-90.
558	558	2 (32) Beginning on August 2, 2001 (the effective date of
559	559	3 Public Act 92-227), personal property purchased by a lessor
560	560	4 who leases the property, under a lease of one year or longer
561	561	5 executed or in effect at the time the lessor would otherwise be
562	562	6 subject to the tax imposed by this Act, to a governmental body
563	563	7 that has been issued an active sales tax exemption
564	564	8 identification number by the Department under Section 1g of
565	565	9 the Retailers' Occupation Tax Act. If the property is leased
566	566	10 in a manner that does not qualify for this exemption or used in
567	567	11 any other nonexempt manner, the lessor shall be liable for the
568	568	12 tax imposed under this Act or the Service Use Tax Act, as the
569	569	13 case may be, based on the fair market value of the property at
570	570	14 the time the nonqualifying use occurs. No lessor shall collect
571	571	15 or attempt to collect an amount (however designated) that
572	572	16 purports to reimburse that lessor for the tax imposed by this
573	573	17 Act or the Service Use Tax Act, as the case may be, if the tax
574	574	18 has not been paid by the lessor. If a lessor improperly
575	575	19 collects any such amount from the lessee, the lessee shall
576	576	20 have a legal right to claim a refund of that amount from the
577	577	21 lessor. If, however, that amount is not refunded to the lessee
578	578	22 for any reason, the lessor is liable to pay that amount to the
579	579	23 Department. This paragraph is exempt from the provisions of
580	580	24 Section 3-90.
581	581	25 (33) On and after July 1, 2003 and through June 30, 2004,
582	582	26 the use in this State of motor vehicles of the second division
583	583
584	584
585	585
586	586
587	587
588	588	HB3477 - 15 - LRB103 27010 HLH 53377 b
589	589
590	590
591	591	HB3477- 16 -LRB103 27010 HLH 53377 b HB3477 - 16 - LRB103 27010 HLH 53377 b
592	592	HB3477 - 16 - LRB103 27010 HLH 53377 b
593	593	1 with a gross vehicle weight in excess of 8,000 pounds and that
594	594	2 are subject to the commercial distribution fee imposed under
595	595	3 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
596	596	4 July 1, 2004 and through June 30, 2005, the use in this State
597	597	5 of motor vehicles of the second division: (i) with a gross
598	598	6 vehicle weight rating in excess of 8,000 pounds; (ii) that are
599	599	7 subject to the commercial distribution fee imposed under
600	600	8 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
601	601	9 are primarily used for commercial purposes. Through June 30,
602	602	10 2005, this exemption applies to repair and replacement parts
603	603	11 added after the initial purchase of such a motor vehicle if
604	604	12 that motor vehicle is used in a manner that would qualify for
605	605	13 the rolling stock exemption otherwise provided for in this
606	606	14 Act. For purposes of this paragraph, the term "used for
607	607	15 commercial purposes" means the transportation of persons or
608	608	16 property in furtherance of any commercial or industrial
609	609	17 enterprise, whether for-hire or not.
610	610	18 (34) Beginning January 1, 2008, tangible personal property
611	611	19 used in the construction or maintenance of a community water
612	612	20 supply, as defined under Section 3.145 of the Environmental
613	613	21 Protection Act, that is operated by a not-for-profit
614	614	22 corporation that holds a valid water supply permit issued
615	615	23 under Title IV of the Environmental Protection Act. This
616	616	24 paragraph is exempt from the provisions of Section 3-90.
617	617	25 (35) Beginning January 1, 2010 and continuing through
618	618	26 December 31, 2024, materials, parts, equipment, components,
619	619
620	620
621	621
622	622
623	623
624	624	HB3477 - 16 - LRB103 27010 HLH 53377 b
625	625
626	626
627	627	HB3477- 17 -LRB103 27010 HLH 53377 b HB3477 - 17 - LRB103 27010 HLH 53377 b
628	628	HB3477 - 17 - LRB103 27010 HLH 53377 b
629	629	1 and furnishings incorporated into or upon an aircraft as part
630	630	2 of the modification, refurbishment, completion, replacement,
631	631	3 repair, or maintenance of the aircraft. This exemption
632	632	4 includes consumable supplies used in the modification,
633	633	5 refurbishment, completion, replacement, repair, and
634	634	6 maintenance of aircraft, but excludes any materials, parts,
635	635	7 equipment, components, and consumable supplies used in the
636	636	8 modification, replacement, repair, and maintenance of aircraft
637	637	9 engines or power plants, whether such engines or power plants
638	638	10 are installed or uninstalled upon any such aircraft.
639	639	11 "Consumable supplies" include, but are not limited to,
640	640	12 adhesive, tape, sandpaper, general purpose lubricants,
641	641	13 cleaning solution, latex gloves, and protective films. This
642	642	14 exemption applies only to the use of qualifying tangible
643	643	15 personal property by persons who modify, refurbish, complete,
644	644	16 repair, replace, or maintain aircraft and who (i) hold an Air
645	645	17 Agency Certificate and are empowered to operate an approved
646	646	18 repair station by the Federal Aviation Administration, (ii)
647	647	19 have a Class IV Rating, and (iii) conduct operations in
648	648	20 accordance with Part 145 of the Federal Aviation Regulations.
649	649	21 The exemption does not include aircraft operated by a
650	650	22 commercial air carrier providing scheduled passenger air
651	651	23 service pursuant to authority issued under Part 121 or Part
652	652	24 129 of the Federal Aviation Regulations. The changes made to
653	653	25 this paragraph (35) by Public Act 98-534 are declarative of
654	654	26 existing law. It is the intent of the General Assembly that the
655	655
656	656
657	657
658	658
659	659
660	660	HB3477 - 17 - LRB103 27010 HLH 53377 b
661	661
662	662
663	663	HB3477- 18 -LRB103 27010 HLH 53377 b HB3477 - 18 - LRB103 27010 HLH 53377 b
664	664	HB3477 - 18 - LRB103 27010 HLH 53377 b
665	665	1 exemption under this paragraph (35) applies continuously from
666	666	2 January 1, 2010 through December 31, 2024; however, no claim
667	667	3 for credit or refund is allowed for taxes paid as a result of
668	668	4 the disallowance of this exemption on or after January 1, 2015
669	669	5 and prior to February 5, 2020 (the effective date of Public Act
670	670	6 101-629) this amendatory Act of the 101st General Assembly.
671	671	7 (36) Tangible personal property purchased by a
672	672	8 public-facilities corporation, as described in Section
673	673	9 11-65-10 of the Illinois Municipal Code, for purposes of
674	674	10 constructing or furnishing a municipal convention hall, but
675	675	11 only if the legal title to the municipal convention hall is
676	676	12 transferred to the municipality without any further
677	677	13 consideration by or on behalf of the municipality at the time
678	678	14 of the completion of the municipal convention hall or upon the
679	679	15 retirement or redemption of any bonds or other debt
680	680	16 instruments issued by the public-facilities corporation in
681	681	17 connection with the development of the municipal convention
682	682	18 hall. This exemption includes existing public-facilities
683	683	19 corporations as provided in Section 11-65-25 of the Illinois
684	684	20 Municipal Code. This paragraph is exempt from the provisions
685	685	21 of Section 3-90.
686	686	22 (37) Beginning January 1, 2017 and through December 31,
687	687	23 2026, menstrual pads, tampons, and menstrual cups.
688	688	24 (38) Merchandise that is subject to the Rental Purchase
689	689	25 Agreement Occupation and Use Tax. The purchaser must certify
690	690	26 that the item is purchased to be rented subject to a rental
691	691
692	692
693	693
694	694
695	695
696	696	HB3477 - 18 - LRB103 27010 HLH 53377 b
697	697
698	698
699	699	HB3477- 19 -LRB103 27010 HLH 53377 b HB3477 - 19 - LRB103 27010 HLH 53377 b
700	700	HB3477 - 19 - LRB103 27010 HLH 53377 b
701	701	1 purchase agreement, as defined in the Rental Purchase
702	702	2 Agreement Act, and provide proof of registration under the
703	703	3 Rental Purchase Agreement Occupation and Use Tax Act. This
704	704	4 paragraph is exempt from the provisions of Section 3-90.
705	705	5 (39) Tangible personal property purchased by a purchaser
706	706	6 who is exempt from the tax imposed by this Act by operation of
707	707	7 federal law. This paragraph is exempt from the provisions of
708	708	8 Section 3-90.
709	709	9 (40) Qualified tangible personal property used in the
710	710	10 construction or operation of a data center that has been
711	711	11 granted a certificate of exemption by the Department of
712	712	12 Commerce and Economic Opportunity, whether that tangible
713	713	13 personal property is purchased by the owner, operator, or
714	714	14 tenant of the data center or by a contractor or subcontractor
715	715	15 of the owner, operator, or tenant. Data centers that would
716	716	16 have qualified for a certificate of exemption prior to January
717	717	17 1, 2020 had Public Act 101-31 been in effect may apply for and
718	718	18 obtain an exemption for subsequent purchases of computer
719	719	19 equipment or enabling software purchased or leased to upgrade,
720	720	20 supplement, or replace computer equipment or enabling software
721	721	21 purchased or leased in the original investment that would have
722	722	22 qualified.
723	723	23 The Department of Commerce and Economic Opportunity shall
724	724	24 grant a certificate of exemption under this item (40) to
725	725	25 qualified data centers as defined by Section 605-1025 of the
726	726	26 Department of Commerce and Economic Opportunity Law of the
727	727
728	728
729	729
730	730
731	731
732	732	HB3477 - 19 - LRB103 27010 HLH 53377 b
733	733
734	734
735	735	HB3477- 20 -LRB103 27010 HLH 53377 b HB3477 - 20 - LRB103 27010 HLH 53377 b
736	736	HB3477 - 20 - LRB103 27010 HLH 53377 b
737	737	1 Civil Administrative Code of Illinois.
738	738	2 For the purposes of this item (40):
739	739	3 "Data center" means a building or a series of
740	740	4 buildings rehabilitated or constructed to house working
741	741	5 servers in one physical location or multiple sites within
742	742	6 the State of Illinois.
743	743	7 "Qualified tangible personal property" means:
744	744	8 electrical systems and equipment; climate control and
745	745	9 chilling equipment and systems; mechanical systems and
746	746	10 equipment; monitoring and secure systems; emergency
747	747	11 generators; hardware; computers; servers; data storage
748	748	12 devices; network connectivity equipment; racks; cabinets;
749	749	13 telecommunications cabling infrastructure; raised floor
750	750	14 systems; peripheral components or systems; software;
751	751	15 mechanical, electrical, or plumbing systems; battery
752	752	16 systems; cooling systems and towers; temperature control
753	753	17 systems; other cabling; and other data center
754	754	18 infrastructure equipment and systems necessary to operate
755	755	19 qualified tangible personal property, including fixtures;
756	756	20 and component parts of any of the foregoing, including
757	757	21 installation, maintenance, repair, refurbishment, and
758	758	22 replacement of qualified tangible personal property to
759	759	23 generate, transform, transmit, distribute, or manage
760	760	24 electricity necessary to operate qualified tangible
761	761	25 personal property; and all other tangible personal
762	762	26 property that is essential to the operations of a computer
763	763
764	764
765	765
766	766
767	767
768	768	HB3477 - 20 - LRB103 27010 HLH 53377 b
769	769
770	770
771	771	HB3477- 21 -LRB103 27010 HLH 53377 b HB3477 - 21 - LRB103 27010 HLH 53377 b
772	772	HB3477 - 21 - LRB103 27010 HLH 53377 b
773	773	1 data center. The term "qualified tangible personal
774	774	2 property" also includes building materials physically
775	775	3 incorporated in to the qualifying data center. To document
776	776	4 the exemption allowed under this Section, the retailer
777	777	5 must obtain from the purchaser a copy of the certificate
778	778	6 of eligibility issued by the Department of Commerce and
779	779	7 Economic Opportunity.
780	780	8 This item (40) is exempt from the provisions of Section
781	781	9 3-90.
782	782	10 (41) Beginning July 1, 2022, breast pumps, breast pump
783	783	11 collection and storage supplies, and breast pump kits. This
784	784	12 item (41) is exempt from the provisions of Section 3-90. As
785	785	13 used in this item (41):
786	786	14 "Breast pump" means an electrically controlled or
787	787	15 manually controlled pump device designed or marketed to be
788	788	16 used to express milk from a human breast during lactation,
789	789	17 including the pump device and any battery, AC adapter, or
790	790	18 other power supply unit that is used to power the pump
791	791	19 device and is packaged and sold with the pump device at the
792	792	20 time of sale.
793	793	21 "Breast pump collection and storage supplies" means
794	794	22 items of tangible personal property designed or marketed
795	795	23 to be used in conjunction with a breast pump to collect
796	796	24 milk expressed from a human breast and to store collected
797	797	25 milk until it is ready for consumption.
798	798	26 "Breast pump collection and storage supplies"
799	799
800	800
801	801
802	802
803	803
804	804	HB3477 - 21 - LRB103 27010 HLH 53377 b
805	805
806	806
807	807	HB3477- 22 -LRB103 27010 HLH 53377 b HB3477 - 22 - LRB103 27010 HLH 53377 b
808	808	HB3477 - 22 - LRB103 27010 HLH 53377 b
809	809	1 includes, but is not limited to: breast shields and breast
810	810	2 shield connectors; breast pump tubes and tubing adapters;
811	811	3 breast pump valves and membranes; backflow protectors and
812	812	4 backflow protector adaptors; bottles and bottle caps
813	813	5 specific to the operation of the breast pump; and breast
814	814	6 milk storage bags.
815	815	7 "Breast pump collection and storage supplies" does not
816	816	8 include: (1) bottles and bottle caps not specific to the
817	817	9 operation of the breast pump; (2) breast pump travel bags
818	818	10 and other similar carrying accessories, including ice
819	819	11 packs, labels, and other similar products; (3) breast pump
820	820	12 cleaning supplies; (4) nursing bras, bra pads, breast
821	821	13 shells, and other similar products; and (5) creams,
822	822	14 ointments, and other similar products that relieve
823	823	15 breastfeeding-related symptoms or conditions of the
824	824	16 breasts or nipples, unless sold as part of a breast pump
825	825	17 kit that is pre-packaged by the breast pump manufacturer
826	826	18 or distributor.
827	827	19 "Breast pump kit" means a kit that: (1) contains no
828	828	20 more than a breast pump, breast pump collection and
829	829	21 storage supplies, a rechargeable battery for operating the
830	830	22 breast pump, a breastmilk cooler, bottle stands, ice
831	831	23 packs, and a breast pump carrying case; and (2) is
832	832	24 pre-packaged as a breast pump kit by the breast pump
833	833	25 manufacturer or distributor.
834	834	26 (42) (41) Tangible personal property sold by or on behalf
835	835
836	836
837	837
838	838
839	839
840	840	HB3477 - 22 - LRB103 27010 HLH 53377 b
841	841
842	842
843	843	HB3477- 23 -LRB103 27010 HLH 53377 b HB3477 - 23 - LRB103 27010 HLH 53377 b
844	844	HB3477 - 23 - LRB103 27010 HLH 53377 b
845	845	1 of the State Treasurer pursuant to the Revised Uniform
846	846	2 Unclaimed Property Act. This item (42) (41) is exempt from the
847	847	3 provisions of Section 3-90.
848	848	4 (43) Beginning on July 1, 2022, food for human consumption
849	849	5 that is to be consumed off the premises where it is sold, as
850	850	6 defined in Section 3-10, except excluding alcoholic beverages,
851	851	7 food consisting of or infused with adult use cannabis, soft
852	852	8 drinks, and food that has been prepared for immediate
853	853	9 consumption. This item (43) is exempt from the provisions of
854	854	10 Section 3-90.
855	855	11 (44) Beginning on July 1, 2023, the following items, as
856	856	12 defined in Section 3-10:
857	857	13 (A) prescription and nonprescription medicines, drugs,
858	858	14 and medical appliances;
859	859	15 (B) products classified as Class III medical devices
860	860	16 by the United States Food and Drug Administration that are
861	861	17 used for cancer treatment pursuant to a prescription, as
862	862	18 well as any accessories and components related to those
863	863	19 devices;
864	864	20 (C) modifications to a motor vehicle for the purpose
865	865	21 of rendering it usable by a person with a disability; and
866	866	22 (D) insulin, blood sugar testing materials, syringes,
867	867	23 and needles used by human diabetics.
868	868	24 This item (44) is exempt from the provisions of Section
869	869	25 3-90.
870	870	26 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
871	871
872	872
873	873
874	874
875	875
876	876	HB3477 - 23 - LRB103 27010 HLH 53377 b
877	877
878	878
879	879	HB3477- 24 -LRB103 27010 HLH 53377 b HB3477 - 24 - LRB103 27010 HLH 53377 b
880	880	HB3477 - 24 - LRB103 27010 HLH 53377 b
881	881	1 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
882	882	2 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
883	883	3 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
884	884	4 eff. 5-27-22; revised 8-1-22.)
885	885	5 (35 ILCS 105/3-10)
886	886	6 Sec. 3-10. Rate of tax. Unless otherwise provided in this
887	887	7 Section, the tax imposed by this Act is at the rate of 6.25% of
888	888	8 either the selling price or the fair market value, if any, of
889	889	9 the tangible personal property. In all cases where property
890	890	10 functionally used or consumed is the same as the property that
891	891	11 was purchased at retail, then the tax is imposed on the selling
892	892	12 price of the property. In all cases where property
893	893	13 functionally used or consumed is a by-product or waste product
894	894	14 that has been refined, manufactured, or produced from property
895	895	15 purchased at retail, then the tax is imposed on the lower of
896	896	16 the fair market value, if any, of the specific property so used
897	897	17 in this State or on the selling price of the property purchased
898	898	18 at retail. For purposes of this Section "fair market value"
899	899	19 means the price at which property would change hands between a
900	900	20 willing buyer and a willing seller, neither being under any
901	901	21 compulsion to buy or sell and both having reasonable knowledge
902	902	22 of the relevant facts. The fair market value shall be
903	903	23 established by Illinois sales by the taxpayer of the same
904	904	24 property as that functionally used or consumed, or if there
905	905	25 are no such sales by the taxpayer, then comparable sales or
906	906
907	907
908	908
909	909
910	910
911	911	HB3477 - 24 - LRB103 27010 HLH 53377 b
912	912
913	913
914	914	HB3477- 25 -LRB103 27010 HLH 53377 b HB3477 - 25 - LRB103 27010 HLH 53377 b
915	915	HB3477 - 25 - LRB103 27010 HLH 53377 b
916	916	1 purchases of property of like kind and character in Illinois.
917	917	2 Beginning on July 1, 2000 and through December 31, 2000,
918	918	3 with respect to motor fuel, as defined in Section 1.1 of the
919	919	4 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
920	920	5 the Use Tax Act, the tax is imposed at the rate of 1.25%.
921	921	6 Beginning on August 6, 2010 through August 15, 2010, and
922	922	7 beginning again on August 5, 2022 through August 14, 2022,
923	923	8 with respect to sales tax holiday items as defined in Section
924	924	9 3-6 of this Act, the tax is imposed at the rate of 1.25%.
925	925	10 With respect to gasohol, the tax imposed by this Act
926	926	11 applies to (i) 70% of the proceeds of sales made on or after
927	927	12 January 1, 1990, and before July 1, 2003, (ii) 80% of the
928	928	13 proceeds of sales made on or after July 1, 2003 and on or
929	929	14 before July 1, 2017, and (iii) 100% of the proceeds of sales
930	930	15 made thereafter. If, at any time, however, the tax under this
931	931	16 Act on sales of gasohol is imposed at the rate of 1.25%, then
932	932	17 the tax imposed by this Act applies to 100% of the proceeds of
933	933	18 sales of gasohol made during that time.
934	934	19 With respect to majority blended ethanol fuel, the tax
935	935	20 imposed by this Act does not apply to the proceeds of sales
936	936	21 made on or after July 1, 2003 and on or before December 31,
937	937	22 2023 but applies to 100% of the proceeds of sales made
938	938	23 thereafter.
939	939	24 With respect to biodiesel blends with no less than 1% and
940	940	25 no more than 10% biodiesel, the tax imposed by this Act applies
941	941	26 to (i) 80% of the proceeds of sales made on or after July 1,
942	942
943	943
944	944
945	945
946	946
947	947	HB3477 - 25 - LRB103 27010 HLH 53377 b
948	948
949	949
950	950	HB3477- 26 -LRB103 27010 HLH 53377 b HB3477 - 26 - LRB103 27010 HLH 53377 b
951	951	HB3477 - 26 - LRB103 27010 HLH 53377 b
952	952	1 2003 and on or before December 31, 2018 and (ii) 100% of the
953	953	2 proceeds of sales made after December 31, 2018 and before
954	954	3 January 1, 2024. On and after January 1, 2024 and on or before
955	955	4 December 31, 2030, the taxation of biodiesel, renewable
956	956	5 diesel, and biodiesel blends shall be as provided in Section
957	957	6 3-5.1. If, at any time, however, the tax under this Act on
958	958	7 sales of biodiesel blends with no less than 1% and no more than
959	959	8 10% biodiesel is imposed at the rate of 1.25%, then the tax
960	960	9 imposed by this Act applies to 100% of the proceeds of sales of
961	961	10 biodiesel blends with no less than 1% and no more than 10%
962	962	11 biodiesel made during that time.
963	963	12 With respect to biodiesel and biodiesel blends with more
964	964	13 than 10% but no more than 99% biodiesel, the tax imposed by
965	965	14 this Act does not apply to the proceeds of sales made on or
966	966	15 after July 1, 2003 and on or before December 31, 2023. On and
967	967	16 after January 1, 2024 and on or before December 31, 2030, the
968	968	17 taxation of biodiesel, renewable diesel, and biodiesel blends
969	969	18 shall be as provided in Section 3-5.1.
970	970	19 Until July 1, 2022 and beginning again on July 1, 2023,
971	971	20 with respect to food for human consumption that is to be
972	972	21 consumed off the premises where it is sold (other than
973	973	22 alcoholic beverages, food consisting of or infused with adult
974	974	23 use cannabis, soft drinks, and food that has been prepared for
975	975	24 immediate consumption), the tax is imposed at the rate of 1%.
976	976	25 Beginning on July 1, 2022 and until July 1, 2023, with respect
977	977	26 to food for human consumption that is to be consumed off the
978	978
979	979
980	980
981	981
982	982
983	983	HB3477 - 26 - LRB103 27010 HLH 53377 b
984	984
985	985
986	986	HB3477- 27 -LRB103 27010 HLH 53377 b HB3477 - 27 - LRB103 27010 HLH 53377 b
987	987	HB3477 - 27 - LRB103 27010 HLH 53377 b
988	988	1 premises where it is sold (other than alcoholic beverages,
989	989	2 food consisting of or infused with adult use cannabis, soft
990	990	3 drinks, and food that has been prepared for immediate
991	991	4 consumption), the tax is imposed at the rate of 0%.
992	992	5 Until July 1, 2023, with With respect to prescription and
993	993	6 nonprescription medicines, drugs, medical appliances, products
994	994	7 classified as Class III medical devices by the United States
995	995	8 Food and Drug Administration that are used for cancer
996	996	9 treatment pursuant to a prescription, as well as any
997	997	10 accessories and components related to those devices,
998	998	11 modifications to a motor vehicle for the purpose of rendering
999	999	12 it usable by a person with a disability, and insulin, blood
1000	1000	13 sugar testing materials, syringes, and needles used by human
1001	1001	14 diabetics, the tax is imposed at the rate of 1%. For the
1002	1002	15 purposes of this Section, until September 1, 2009: the term
1003	1003	16 "soft drinks" means any complete, finished, ready-to-use,
1004	1004	17 non-alcoholic drink, whether carbonated or not, including, but
1005	1005	18 not limited to, soda water, cola, fruit juice, vegetable
1006	1006	19 juice, carbonated water, and all other preparations commonly
1007	1007	20 known as soft drinks of whatever kind or description that are
1008	1008	21 contained in any closed or sealed bottle, can, carton, or
1009	1009	22 container, regardless of size; but "soft drinks" does not
1010	1010	23 include coffee, tea, non-carbonated water, infant formula,
1011	1011	24 milk or milk products as defined in the Grade A Pasteurized
1012	1012	25 Milk and Milk Products Act, or drinks containing 50% or more
1013	1013	26 natural fruit or vegetable juice.
1014	1014
1015	1015
1016	1016
1017	1017
1018	1018
1019	1019	HB3477 - 27 - LRB103 27010 HLH 53377 b
1020	1020
1021	1021
1022	1022	HB3477- 28 -LRB103 27010 HLH 53377 b HB3477 - 28 - LRB103 27010 HLH 53377 b
1023	1023	HB3477 - 28 - LRB103 27010 HLH 53377 b
1024	1024	1 Notwithstanding any other provisions of this Act,
1025	1025	2 beginning September 1, 2009, "soft drinks" means non-alcoholic
1026	1026	3 beverages that contain natural or artificial sweeteners. "Soft
1027	1027	4 drinks" does do not include beverages that contain milk or
1028	1028	5 milk products, soy, rice or similar milk substitutes, or
1029	1029	6 greater than 50% of vegetable or fruit juice by volume.
1030	1030	7 Until August 1, 2009, and notwithstanding any other
1031	1031	8 provisions of this Act, "food for human consumption that is to
1032	1032	9 be consumed off the premises where it is sold" includes all
1033	1033	10 food sold through a vending machine, except soft drinks and
1034	1034	11 food products that are dispensed hot from a vending machine,
1035	1035	12 regardless of the location of the vending machine. Beginning
1036	1036	13 August 1, 2009, and notwithstanding any other provisions of
1037	1037	14 this Act, "food for human consumption that is to be consumed
1038	1038	15 off the premises where it is sold" includes all food sold
1039	1039	16 through a vending machine, except soft drinks, candy, and food
1040	1040	17 products that are dispensed hot from a vending machine,
1041	1041	18 regardless of the location of the vending machine.
1042	1042	19 Notwithstanding any other provisions of this Act,
1043	1043	20 beginning September 1, 2009, "food for human consumption that
1044	1044	21 is to be consumed off the premises where it is sold" does not
1045	1045	22 include candy. For purposes of this Section, "candy" means a
1046	1046	23 preparation of sugar, honey, or other natural or artificial
1047	1047	24 sweeteners in combination with chocolate, fruits, nuts or
1048	1048	25 other ingredients or flavorings in the form of bars, drops, or
1049	1049	26 pieces. "Candy" does not include any preparation that contains
1050	1050
1051	1051
1052	1052
1053	1053
1054	1054
1055	1055	HB3477 - 28 - LRB103 27010 HLH 53377 b
1056	1056
1057	1057
1058	1058	HB3477- 29 -LRB103 27010 HLH 53377 b HB3477 - 29 - LRB103 27010 HLH 53377 b
1059	1059	HB3477 - 29 - LRB103 27010 HLH 53377 b
1060	1060	1 flour or requires refrigeration.
1061	1061	2 Notwithstanding any other provisions of this Act,
1062	1062	3 beginning September 1, 2009, "nonprescription medicines and
1063	1063	4 drugs" does not include grooming and hygiene products. For
1064	1064	5 purposes of this Section, "grooming and hygiene products"
1065	1065	6 includes, but is not limited to, soaps and cleaning solutions,
1066	1066	7 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1067	1067	8 lotions and screens, unless those products are available by
1068	1068	9 prescription only, regardless of whether the products meet the
1069	1069	10 definition of "over-the-counter-drugs". For the purposes of
1070	1070	11 this paragraph, "over-the-counter-drug" means a drug for human
1071	1071	12 use that contains a label that identifies the product as a drug
1072	1072	13 as required by 21 CFR C.F.R. 201.66. The
1073	1073	14 "over-the-counter-drug" label includes:
1074	1074	15 (A) a A "Drug Facts" panel; or
1075	1075	16 (B) a A statement of the "active ingredient(s)" with a
1076	1076	17 list of those ingredients contained in the compound,
1077	1077	18 substance or preparation.
1078	1078	19 Beginning on January 1, 2014 (the effective date of Public
1079	1079	20 Act 98-122) this amendatory Act of the 98th General Assembly,
1080	1080	21 "prescription and nonprescription medicines and drugs"
1081	1081	22 includes medical cannabis purchased from a registered
1082	1082	23 dispensing organization under the Compassionate Use of Medical
1083	1083	24 Cannabis Program Act.
1084	1084	25 As used in this Section, "adult use cannabis" means
1085	1085	26 cannabis subject to tax under the Cannabis Cultivation
1086	1086
1087	1087
1088	1088
1089	1089
1090	1090
1091	1091	HB3477 - 29 - LRB103 27010 HLH 53377 b
1092	1092
1093	1093
1094	1094	HB3477- 30 -LRB103 27010 HLH 53377 b HB3477 - 30 - LRB103 27010 HLH 53377 b
1095	1095	HB3477 - 30 - LRB103 27010 HLH 53377 b
1096	1096	1 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1097	1097	2 and does not include cannabis subject to tax under the
1098	1098	3 Compassionate Use of Medical Cannabis Program Act.
1099	1099	4 If the property that is purchased at retail from a
1100	1100	5 retailer is acquired outside Illinois and used outside
1101	1101	6 Illinois before being brought to Illinois for use here and is
1102	1102	7 taxable under this Act, the "selling price" on which the tax is
1103	1103	8 computed shall be reduced by an amount that represents a
1104	1104	9 reasonable allowance for depreciation for the period of prior
1105	1105	10 out-of-state use.
1106	1106	11 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1107	1107	12 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
1108	1108	13 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
1109	1109	14 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
1110	1110	15 5-27-22.)
1111	1111	16 Section 10. The Service Use Tax Act is amended by changing
1112	1112	17 Sections 3-5 and 3-10 as follows:
1113	1113	18 (35 ILCS 110/3-5)
1114	1114	19 Sec. 3-5. Exemptions. Use of the following tangible
1115	1115	20 personal property is exempt from the tax imposed by this Act:
1116	1116	21 (1) Personal property purchased from a corporation,
1117	1117	22 society, association, foundation, institution, or
1118	1118	23 organization, other than a limited liability company, that is
1119	1119	24 organized and operated as a not-for-profit service enterprise
1120	1120
1121	1121
1122	1122
1123	1123
1124	1124
1125	1125	HB3477 - 30 - LRB103 27010 HLH 53377 b
1126	1126
1127	1127
1128	1128	HB3477- 31 -LRB103 27010 HLH 53377 b HB3477 - 31 - LRB103 27010 HLH 53377 b
1129	1129	HB3477 - 31 - LRB103 27010 HLH 53377 b
1130	1130	1 for the benefit of persons 65 years of age or older if the
1131	1131	2 personal property was not purchased by the enterprise for the
1132	1132	3 purpose of resale by the enterprise.
1133	1133	4 (2) Personal property purchased by a non-profit Illinois
1134	1134	5 county fair association for use in conducting, operating, or
1135	1135	6 promoting the county fair.
1136	1136	7 (3) Personal property purchased by a not-for-profit arts
1137	1137	8 or cultural organization that establishes, by proof required
1138	1138	9 by the Department by rule, that it has received an exemption
1139	1139	10 under Section 501(c)(3) of the Internal Revenue Code and that
1140	1140	11 is organized and operated primarily for the presentation or
1141	1141	12 support of arts or cultural programming, activities, or
1142	1142	13 services. These organizations include, but are not limited to,
1143	1143	14 music and dramatic arts organizations such as symphony
1144	1144	15 orchestras and theatrical groups, arts and cultural service
1145	1145	16 organizations, local arts councils, visual arts organizations,
1146	1146	17 and media arts organizations. On and after July 1, 2001 (the
1147	1147	18 effective date of Public Act 92-35), however, an entity
1148	1148	19 otherwise eligible for this exemption shall not make tax-free
1149	1149	20 purchases unless it has an active identification number issued
1150	1150	21 by the Department.
1151	1151	22 (4) Legal tender, currency, medallions, or gold or silver
1152	1152	23 coinage issued by the State of Illinois, the government of the
1153	1153	24 United States of America, or the government of any foreign
1154	1154	25 country, and bullion.
1155	1155	26 (5) Until July 1, 2003 and beginning again on September 1,
1156	1156
1157	1157
1158	1158
1159	1159
1160	1160
1161	1161	HB3477 - 31 - LRB103 27010 HLH 53377 b
1162	1162
1163	1163
1164	1164	HB3477- 32 -LRB103 27010 HLH 53377 b HB3477 - 32 - LRB103 27010 HLH 53377 b
1165	1165	HB3477 - 32 - LRB103 27010 HLH 53377 b
1166	1166	1 2004 through August 30, 2014, graphic arts machinery and
1167	1167	2 equipment, including repair and replacement parts, both new
1168	1168	3 and used, and including that manufactured on special order or
1169	1169	4 purchased for lease, certified by the purchaser to be used
1170	1170	5 primarily for graphic arts production. Equipment includes
1171	1171	6 chemicals or chemicals acting as catalysts but only if the
1172	1172	7 chemicals or chemicals acting as catalysts effect a direct and
1173	1173	8 immediate change upon a graphic arts product. Beginning on
1174	1174	9 July 1, 2017, graphic arts machinery and equipment is included
1175	1175	10 in the manufacturing and assembling machinery and equipment
1176	1176	11 exemption under Section 2 of this Act.
1177	1177	12 (6) Personal property purchased from a teacher-sponsored
1178	1178	13 student organization affiliated with an elementary or
1179	1179	14 secondary school located in Illinois.
1180	1180	15 (7) Farm machinery and equipment, both new and used,
1181	1181	16 including that manufactured on special order, certified by the
1182	1182	17 purchaser to be used primarily for production agriculture or
1183	1183	18 State or federal agricultural programs, including individual
1184	1184	19 replacement parts for the machinery and equipment, including
1185	1185	20 machinery and equipment purchased for lease, and including
1186	1186	21 implements of husbandry defined in Section 1-130 of the
1187	1187	22 Illinois Vehicle Code, farm machinery and agricultural
1188	1188	23 chemical and fertilizer spreaders, and nurse wagons required
1189	1189	24 to be registered under Section 3-809 of the Illinois Vehicle
1190	1190	25 Code, but excluding other motor vehicles required to be
1191	1191	26 registered under the Illinois Vehicle Code. Horticultural
1192	1192
1193	1193
1194	1194
1195	1195
1196	1196
1197	1197	HB3477 - 32 - LRB103 27010 HLH 53377 b
1198	1198
1199	1199
1200	1200	HB3477- 33 -LRB103 27010 HLH 53377 b HB3477 - 33 - LRB103 27010 HLH 53377 b
1201	1201	HB3477 - 33 - LRB103 27010 HLH 53377 b
1202	1202	1 polyhouses or hoop houses used for propagating, growing, or
1203	1203	2 overwintering plants shall be considered farm machinery and
1204	1204	3 equipment under this item (7). Agricultural chemical tender
1205	1205	4 tanks and dry boxes shall include units sold separately from a
1206	1206	5 motor vehicle required to be licensed and units sold mounted
1207	1207	6 on a motor vehicle required to be licensed if the selling price
1208	1208	7 of the tender is separately stated.
1209	1209	8 Farm machinery and equipment shall include precision
1210	1210	9 farming equipment that is installed or purchased to be
1211	1211	10 installed on farm machinery and equipment including, but not
1212	1212	11 limited to, tractors, harvesters, sprayers, planters, seeders,
1213	1213	12 or spreaders. Precision farming equipment includes, but is not
1214	1214	13 limited to, soil testing sensors, computers, monitors,
1215	1215	14 software, global positioning and mapping systems, and other
1216	1216	15 such equipment.
1217	1217	16 Farm machinery and equipment also includes computers,
1218	1218	17 sensors, software, and related equipment used primarily in the
1219	1219	18 computer-assisted operation of production agriculture
1220	1220	19 facilities, equipment, and activities such as, but not limited
1221	1221	20 to, the collection, monitoring, and correlation of animal and
1222	1222	21 crop data for the purpose of formulating animal diets and
1223	1223	22 agricultural chemicals. This item (7) is exempt from the
1224	1224	23 provisions of Section 3-75.
1225	1225	24 (8) Until June 30, 2013, fuel and petroleum products sold
1226	1226	25 to or used by an air common carrier, certified by the carrier
1227	1227	26 to be used for consumption, shipment, or storage in the
1228	1228
1229	1229
1230	1230
1231	1231
1232	1232
1233	1233	HB3477 - 33 - LRB103 27010 HLH 53377 b
1234	1234
1235	1235
1236	1236	HB3477- 34 -LRB103 27010 HLH 53377 b HB3477 - 34 - LRB103 27010 HLH 53377 b
1237	1237	HB3477 - 34 - LRB103 27010 HLH 53377 b
1238	1238	1 conduct of its business as an air common carrier, for a flight
1239	1239	2 destined for or returning from a location or locations outside
1240	1240	3 the United States without regard to previous or subsequent
1241	1241	4 domestic stopovers.
1242	1242	5 Beginning July 1, 2013, fuel and petroleum products sold
1243	1243	6 to or used by an air carrier, certified by the carrier to be
1244	1244	7 used for consumption, shipment, or storage in the conduct of
1245	1245	8 its business as an air common carrier, for a flight that (i) is
1246	1246	9 engaged in foreign trade or is engaged in trade between the
1247	1247	10 United States and any of its possessions and (ii) transports
1248	1248	11 at least one individual or package for hire from the city of
1249	1249	12 origination to the city of final destination on the same
1250	1250	13 aircraft, without regard to a change in the flight number of
1251	1251	14 that aircraft.
1252	1252	15 (9) Proceeds of mandatory service charges separately
1253	1253	16 stated on customers' bills for the purchase and consumption of
1254	1254	17 food and beverages acquired as an incident to the purchase of a
1255	1255	18 service from a serviceman, to the extent that the proceeds of
1256	1256	19 the service charge are in fact turned over as tips or as a
1257	1257	20 substitute for tips to the employees who participate directly
1258	1258	21 in preparing, serving, hosting or cleaning up the food or
1259	1259	22 beverage function with respect to which the service charge is
1260	1260	23 imposed.
1261	1261	24 (10) Until July 1, 2003, oil field exploration, drilling,
1262	1262	25 and production equipment, including (i) rigs and parts of
1263	1263	26 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1264	1264
1265	1265
1266	1266
1267	1267
1268	1268
1269	1269	HB3477 - 34 - LRB103 27010 HLH 53377 b
1270	1270
1271	1271
1272	1272	HB3477- 35 -LRB103 27010 HLH 53377 b HB3477 - 35 - LRB103 27010 HLH 53377 b
1273	1273	HB3477 - 35 - LRB103 27010 HLH 53377 b
1274	1274	1 pipe and tubular goods, including casing and drill strings,
1275	1275	2 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1276	1276	3 lines, (v) any individual replacement part for oil field
1277	1277	4 exploration, drilling, and production equipment, and (vi)
1278	1278	5 machinery and equipment purchased for lease; but excluding
1279	1279	6 motor vehicles required to be registered under the Illinois
1280	1280	7 Vehicle Code.
1281	1281	8 (11) Proceeds from the sale of photoprocessing machinery
1282	1282	9 and equipment, including repair and replacement parts, both
1283	1283	10 new and used, including that manufactured on special order,
1284	1284	11 certified by the purchaser to be used primarily for
1285	1285	12 photoprocessing, and including photoprocessing machinery and
1286	1286	13 equipment purchased for lease.
1287	1287	14 (12) Until July 1, 2028, coal and aggregate exploration,
1288	1288	15 mining, off-highway hauling, processing, maintenance, and
1289	1289	16 reclamation equipment, including replacement parts and
1290	1290	17 equipment, and including equipment purchased for lease, but
1291	1291	18 excluding motor vehicles required to be registered under the
1292	1292	19 Illinois Vehicle Code. The changes made to this Section by
1293	1293	20 Public Act 97-767 apply on and after July 1, 2003, but no claim
1294	1294	21 for credit or refund is allowed on or after August 16, 2013
1295	1295	22 (the effective date of Public Act 98-456) for such taxes paid
1296	1296	23 during the period beginning July 1, 2003 and ending on August
1297	1297	24 16, 2013 (the effective date of Public Act 98-456).
1298	1298	25 (13) Semen used for artificial insemination of livestock
1299	1299	26 for direct agricultural production.
1300	1300
1301	1301
1302	1302
1303	1303
1304	1304
1305	1305	HB3477 - 35 - LRB103 27010 HLH 53377 b
1306	1306
1307	1307
1308	1308	HB3477- 36 -LRB103 27010 HLH 53377 b HB3477 - 36 - LRB103 27010 HLH 53377 b
1309	1309	HB3477 - 36 - LRB103 27010 HLH 53377 b
1310	1310	1 (14) Horses, or interests in horses, registered with and
1311	1311	2 meeting the requirements of any of the Arabian Horse Club
1312	1312	3 Registry of America, Appaloosa Horse Club, American Quarter
1313	1313	4 Horse Association, United States Trotting Association, or
1314	1314	5 Jockey Club, as appropriate, used for purposes of breeding or
1315	1315	6 racing for prizes. This item (14) is exempt from the
1316	1316	7 provisions of Section 3-75, and the exemption provided for
1317	1317	8 under this item (14) applies for all periods beginning May 30,
1318	1318	9 1995, but no claim for credit or refund is allowed on or after
1319	1319	10 January 1, 2008 (the effective date of Public Act 95-88) for
1320	1320	11 such taxes paid during the period beginning May 30, 2000 and
1321	1321	12 ending on January 1, 2008 (the effective date of Public Act
1322	1322	13 95-88).
1323	1323	14 (15) Computers and communications equipment utilized for
1324	1324	15 any hospital purpose and equipment used in the diagnosis,
1325	1325	16 analysis, or treatment of hospital patients purchased by a
1326	1326	17 lessor who leases the equipment, under a lease of one year or
1327	1327	18 longer executed or in effect at the time the lessor would
1328	1328	19 otherwise be subject to the tax imposed by this Act, to a
1329	1329	20 hospital that has been issued an active tax exemption
1330	1330	21 identification number by the Department under Section 1g of
1331	1331	22 the Retailers' Occupation Tax Act. If the equipment is leased
1332	1332	23 in a manner that does not qualify for this exemption or is used
1333	1333	24 in any other non-exempt manner, the lessor shall be liable for
1334	1334	25 the tax imposed under this Act or the Use Tax Act, as the case
1335	1335	26 may be, based on the fair market value of the property at the
1336	1336
1337	1337
1338	1338
1339	1339
1340	1340
1341	1341	HB3477 - 36 - LRB103 27010 HLH 53377 b
1342	1342
1343	1343
1344	1344	HB3477- 37 -LRB103 27010 HLH 53377 b HB3477 - 37 - LRB103 27010 HLH 53377 b
1345	1345	HB3477 - 37 - LRB103 27010 HLH 53377 b
1346	1346	1 time the non-qualifying use occurs. No lessor shall collect or
1347	1347	2 attempt to collect an amount (however designated) that
1348	1348	3 purports to reimburse that lessor for the tax imposed by this
1349	1349	4 Act or the Use Tax Act, as the case may be, if the tax has not
1350	1350	5 been paid by the lessor. If a lessor improperly collects any
1351	1351	6 such amount from the lessee, the lessee shall have a legal
1352	1352	7 right to claim a refund of that amount from the lessor. If,
1353	1353	8 however, that amount is not refunded to the lessee for any
1354	1354	9 reason, the lessor is liable to pay that amount to the
1355	1355	10 Department.
1356	1356	11 (16) Personal property purchased by a lessor who leases
1357	1357	12 the property, under a lease of one year or longer executed or
1358	1358	13 in effect at the time the lessor would otherwise be subject to
1359	1359	14 the tax imposed by this Act, to a governmental body that has
1360	1360	15 been issued an active tax exemption identification number by
1361	1361	16 the Department under Section 1g of the Retailers' Occupation
1362	1362	17 Tax Act. If the property is leased in a manner that does not
1363	1363	18 qualify for this exemption or is used in any other non-exempt
1364	1364	19 manner, the lessor shall be liable for the tax imposed under
1365	1365	20 this Act or the Use Tax Act, as the case may be, based on the
1366	1366	21 fair market value of the property at the time the
1367	1367	22 non-qualifying use occurs. No lessor shall collect or attempt
1368	1368	23 to collect an amount (however designated) that purports to
1369	1369	24 reimburse that lessor for the tax imposed by this Act or the
1370	1370	25 Use Tax Act, as the case may be, if the tax has not been paid
1371	1371	26 by the lessor. If a lessor improperly collects any such amount
1372	1372
1373	1373
1374	1374
1375	1375
1376	1376
1377	1377	HB3477 - 37 - LRB103 27010 HLH 53377 b
1378	1378
1379	1379
1380	1380	HB3477- 38 -LRB103 27010 HLH 53377 b HB3477 - 38 - LRB103 27010 HLH 53377 b
1381	1381	HB3477 - 38 - LRB103 27010 HLH 53377 b
1382	1382	1 from the lessee, the lessee shall have a legal right to claim a
1383	1383	2 refund of that amount from the lessor. If, however, that
1384	1384	3 amount is not refunded to the lessee for any reason, the lessor
1385	1385	4 is liable to pay that amount to the Department.
1386	1386	5 (17) Beginning with taxable years ending on or after
1387	1387	6 December 31, 1995 and ending with taxable years ending on or
1388	1388	7 before December 31, 2004, personal property that is donated
1389	1389	8 for disaster relief to be used in a State or federally declared
1390	1390	9 disaster area in Illinois or bordering Illinois by a
1391	1391	10 manufacturer or retailer that is registered in this State to a
1392	1392	11 corporation, society, association, foundation, or institution
1393	1393	12 that has been issued a sales tax exemption identification
1394	1394	13 number by the Department that assists victims of the disaster
1395	1395	14 who reside within the declared disaster area.
1396	1396	15 (18) Beginning with taxable years ending on or after
1397	1397	16 December 31, 1995 and ending with taxable years ending on or
1398	1398	17 before December 31, 2004, personal property that is used in
1399	1399	18 the performance of infrastructure repairs in this State,
1400	1400	19 including but not limited to municipal roads and streets,
1401	1401	20 access roads, bridges, sidewalks, waste disposal systems,
1402	1402	21 water and sewer line extensions, water distribution and
1403	1403	22 purification facilities, storm water drainage and retention
1404	1404	23 facilities, and sewage treatment facilities, resulting from a
1405	1405	24 State or federally declared disaster in Illinois or bordering
1406	1406	25 Illinois when such repairs are initiated on facilities located
1407	1407	26 in the declared disaster area within 6 months after the
1408	1408
1409	1409
1410	1410
1411	1411
1412	1412
1413	1413	HB3477 - 38 - LRB103 27010 HLH 53377 b
1414	1414
1415	1415
1416	1416	HB3477- 39 -LRB103 27010 HLH 53377 b HB3477 - 39 - LRB103 27010 HLH 53377 b
1417	1417	HB3477 - 39 - LRB103 27010 HLH 53377 b
1418	1418	1 disaster.
1419	1419	2 (19) Beginning July 1, 1999, game or game birds purchased
1420	1420	3 at a "game breeding and hunting preserve area" as that term is
1421	1421	4 used in the Wildlife Code. This paragraph is exempt from the
1422	1422	5 provisions of Section 3-75.
1423	1423	6 (20) A motor vehicle, as that term is defined in Section
1424	1424	7 1-146 of the Illinois Vehicle Code, that is donated to a
1425	1425	8 corporation, limited liability company, society, association,
1426	1426	9 foundation, or institution that is determined by the
1427	1427	10 Department to be organized and operated exclusively for
1428	1428	11 educational purposes. For purposes of this exemption, "a
1429	1429	12 corporation, limited liability company, society, association,
1430	1430	13 foundation, or institution organized and operated exclusively
1431	1431	14 for educational purposes" means all tax-supported public
1432	1432	15 schools, private schools that offer systematic instruction in
1433	1433	16 useful branches of learning by methods common to public
1434	1434	17 schools and that compare favorably in their scope and
1435	1435	18 intensity with the course of study presented in tax-supported
1436	1436	19 schools, and vocational or technical schools or institutes
1437	1437	20 organized and operated exclusively to provide a course of
1438	1438	21 study of not less than 6 weeks duration and designed to prepare
1439	1439	22 individuals to follow a trade or to pursue a manual,
1440	1440	23 technical, mechanical, industrial, business, or commercial
1441	1441	24 occupation.
1442	1442	25 (21) Beginning January 1, 2000, personal property,
1443	1443	26 including food, purchased through fundraising events for the
1444	1444
1445	1445
1446	1446
1447	1447
1448	1448
1449	1449	HB3477 - 39 - LRB103 27010 HLH 53377 b
1450	1450
1451	1451
1452	1452	HB3477- 40 -LRB103 27010 HLH 53377 b HB3477 - 40 - LRB103 27010 HLH 53377 b
1453	1453	HB3477 - 40 - LRB103 27010 HLH 53377 b
1454	1454	1 benefit of a public or private elementary or secondary school,
1455	1455	2 a group of those schools, or one or more school districts if
1456	1456	3 the events are sponsored by an entity recognized by the school
1457	1457	4 district that consists primarily of volunteers and includes
1458	1458	5 parents and teachers of the school children. This paragraph
1459	1459	6 does not apply to fundraising events (i) for the benefit of
1460	1460	7 private home instruction or (ii) for which the fundraising
1461	1461	8 entity purchases the personal property sold at the events from
1462	1462	9 another individual or entity that sold the property for the
1463	1463	10 purpose of resale by the fundraising entity and that profits
1464	1464	11 from the sale to the fundraising entity. This paragraph is
1465	1465	12 exempt from the provisions of Section 3-75.
1466	1466	13 (22) Beginning January 1, 2000 and through December 31,
1467	1467	14 2001, new or used automatic vending machines that prepare and
1468	1468	15 serve hot food and beverages, including coffee, soup, and
1469	1469	16 other items, and replacement parts for these machines.
1470	1470	17 Beginning January 1, 2002 and through June 30, 2003, machines
1471	1471	18 and parts for machines used in commercial, coin-operated
1472	1472	19 amusement and vending business if a use or occupation tax is
1473	1473	20 paid on the gross receipts derived from the use of the
1474	1474	21 commercial, coin-operated amusement and vending machines. This
1475	1475	22 paragraph is exempt from the provisions of Section 3-75.
1476	1476	23 (23) Beginning August 23, 2001 and through June 30, 2016,
1477	1477	24 food for human consumption that is to be consumed off the
1478	1478	25 premises where it is sold (other than alcoholic beverages,
1479	1479	26 soft drinks, and food that has been prepared for immediate
1480	1480
1481	1481
1482	1482
1483	1483
1484	1484
1485	1485	HB3477 - 40 - LRB103 27010 HLH 53377 b
1486	1486
1487	1487
1488	1488	HB3477- 41 -LRB103 27010 HLH 53377 b HB3477 - 41 - LRB103 27010 HLH 53377 b
1489	1489	HB3477 - 41 - LRB103 27010 HLH 53377 b
1490	1490	1 consumption) and prescription and nonprescription medicines,
1491	1491	2 drugs, medical appliances, and insulin, urine testing
1492	1492	3 materials, syringes, and needles used by diabetics, for human
1493	1493	4 use, when purchased for use by a person receiving medical
1494	1494	5 assistance under Article V of the Illinois Public Aid Code who
1495	1495	6 resides in a licensed long-term care facility, as defined in
1496	1496	7 the Nursing Home Care Act, or in a licensed facility as defined
1497	1497	8 in the ID/DD Community Care Act, the MC/DD Act, or the
1498	1498	9 Specialized Mental Health Rehabilitation Act of 2013.
1499	1499	10 (24) Beginning on August 2, 2001 (the effective date of
1500	1500	11 Public Act 92-227), computers and communications equipment
1501	1501	12 utilized for any hospital purpose and equipment used in the
1502	1502	13 diagnosis, analysis, or treatment of hospital patients
1503	1503	14 purchased by a lessor who leases the equipment, under a lease
1504	1504	15 of one year or longer executed or in effect at the time the
1505	1505	16 lessor would otherwise be subject to the tax imposed by this
1506	1506	17 Act, to a hospital that has been issued an active tax exemption
1507	1507	18 identification number by the Department under Section 1g of
1508	1508	19 the Retailers' Occupation Tax Act. If the equipment is leased
1509	1509	20 in a manner that does not qualify for this exemption or is used
1510	1510	21 in any other nonexempt manner, the lessor shall be liable for
1511	1511	22 the tax imposed under this Act or the Use Tax Act, as the case
1512	1512	23 may be, based on the fair market value of the property at the
1513	1513	24 time the nonqualifying use occurs. No lessor shall collect or
1514	1514	25 attempt to collect an amount (however designated) that
1515	1515	26 purports to reimburse that lessor for the tax imposed by this
1516	1516
1517	1517
1518	1518
1519	1519
1520	1520
1521	1521	HB3477 - 41 - LRB103 27010 HLH 53377 b
1522	1522
1523	1523
1524	1524	HB3477- 42 -LRB103 27010 HLH 53377 b HB3477 - 42 - LRB103 27010 HLH 53377 b
1525	1525	HB3477 - 42 - LRB103 27010 HLH 53377 b
1526	1526	1 Act or the Use Tax Act, as the case may be, if the tax has not
1527	1527	2 been paid by the lessor. If a lessor improperly collects any
1528	1528	3 such amount from the lessee, the lessee shall have a legal
1529	1529	4 right to claim a refund of that amount from the lessor. If,
1530	1530	5 however, that amount is not refunded to the lessee for any
1531	1531	6 reason, the lessor is liable to pay that amount to the
1532	1532	7 Department. This paragraph is exempt from the provisions of
1533	1533	8 Section 3-75.
1534	1534	9 (25) Beginning on August 2, 2001 (the effective date of
1535	1535	10 Public Act 92-227), personal property purchased by a lessor
1536	1536	11 who leases the property, under a lease of one year or longer
1537	1537	12 executed or in effect at the time the lessor would otherwise be
1538	1538	13 subject to the tax imposed by this Act, to a governmental body
1539	1539	14 that has been issued an active tax exemption identification
1540	1540	15 number by the Department under Section 1g of the Retailers'
1541	1541	16 Occupation Tax Act. If the property is leased in a manner that
1542	1542	17 does not qualify for this exemption or is used in any other
1543	1543	18 nonexempt manner, the lessor shall be liable for the tax
1544	1544	19 imposed under this Act or the Use Tax Act, as the case may be,
1545	1545	20 based on the fair market value of the property at the time the
1546	1546	21 nonqualifying use occurs. No lessor shall collect or attempt
1547	1547	22 to collect an amount (however designated) that purports to
1548	1548	23 reimburse that lessor for the tax imposed by this Act or the
1549	1549	24 Use Tax Act, as the case may be, if the tax has not been paid
1550	1550	25 by the lessor. If a lessor improperly collects any such amount
1551	1551	26 from the lessee, the lessee shall have a legal right to claim a
1552	1552
1553	1553
1554	1554
1555	1555
1556	1556
1557	1557	HB3477 - 42 - LRB103 27010 HLH 53377 b
1558	1558
1559	1559
1560	1560	HB3477- 43 -LRB103 27010 HLH 53377 b HB3477 - 43 - LRB103 27010 HLH 53377 b
1561	1561	HB3477 - 43 - LRB103 27010 HLH 53377 b
1562	1562	1 refund of that amount from the lessor. If, however, that
1563	1563	2 amount is not refunded to the lessee for any reason, the lessor
1564	1564	3 is liable to pay that amount to the Department. This paragraph
1565	1565	4 is exempt from the provisions of Section 3-75.
1566	1566	5 (26) Beginning January 1, 2008, tangible personal property
1567	1567	6 used in the construction or maintenance of a community water
1568	1568	7 supply, as defined under Section 3.145 of the Environmental
1569	1569	8 Protection Act, that is operated by a not-for-profit
1570	1570	9 corporation that holds a valid water supply permit issued
1571	1571	10 under Title IV of the Environmental Protection Act. This
1572	1572	11 paragraph is exempt from the provisions of Section 3-75.
1573	1573	12 (27) Beginning January 1, 2010 and continuing through
1574	1574	13 December 31, 2024, materials, parts, equipment, components,
1575	1575	14 and furnishings incorporated into or upon an aircraft as part
1576	1576	15 of the modification, refurbishment, completion, replacement,
1577	1577	16 repair, or maintenance of the aircraft. This exemption
1578	1578	17 includes consumable supplies used in the modification,
1579	1579	18 refurbishment, completion, replacement, repair, and
1580	1580	19 maintenance of aircraft, but excludes any materials, parts,
1581	1581	20 equipment, components, and consumable supplies used in the
1582	1582	21 modification, replacement, repair, and maintenance of aircraft
1583	1583	22 engines or power plants, whether such engines or power plants
1584	1584	23 are installed or uninstalled upon any such aircraft.
1585	1585	24 "Consumable supplies" include, but are not limited to,
1586	1586	25 adhesive, tape, sandpaper, general purpose lubricants,
1587	1587	26 cleaning solution, latex gloves, and protective films. This
1588	1588
1589	1589
1590	1590
1591	1591
1592	1592
1593	1593	HB3477 - 43 - LRB103 27010 HLH 53377 b
1594	1594
1595	1595
1596	1596	HB3477- 44 -LRB103 27010 HLH 53377 b HB3477 - 44 - LRB103 27010 HLH 53377 b
1597	1597	HB3477 - 44 - LRB103 27010 HLH 53377 b
1598	1598	1 exemption applies only to the use of qualifying tangible
1599	1599	2 personal property transferred incident to the modification,
1600	1600	3 refurbishment, completion, replacement, repair, or maintenance
1601	1601	4 of aircraft by persons who (i) hold an Air Agency Certificate
1602	1602	5 and are empowered to operate an approved repair station by the
1603	1603	6 Federal Aviation Administration, (ii) have a Class IV Rating,
1604	1604	7 and (iii) conduct operations in accordance with Part 145 of
1605	1605	8 the Federal Aviation Regulations. The exemption does not
1606	1606	9 include aircraft operated by a commercial air carrier
1607	1607	10 providing scheduled passenger air service pursuant to
1608	1608	11 authority issued under Part 121 or Part 129 of the Federal
1609	1609	12 Aviation Regulations. The changes made to this paragraph (27)
1610	1610	13 by Public Act 98-534 are declarative of existing law. It is the
1611	1611	14 intent of the General Assembly that the exemption under this
1612	1612	15 paragraph (27) applies continuously from January 1, 2010
1613	1613	16 through December 31, 2024; however, no claim for credit or
1614	1614	17 refund is allowed for taxes paid as a result of the
1615	1615	18 disallowance of this exemption on or after January 1, 2015 and
1616	1616	19 prior to February 5, 2020 (the effective date of Public Act
1617	1617	20 101-629) this amendatory Act of the 101st General Assembly.
1618	1618	21 (28) Tangible personal property purchased by a
1619	1619	22 public-facilities corporation, as described in Section
1620	1620	23 11-65-10 of the Illinois Municipal Code, for purposes of
1621	1621	24 constructing or furnishing a municipal convention hall, but
1622	1622	25 only if the legal title to the municipal convention hall is
1623	1623	26 transferred to the municipality without any further
1624	1624
1625	1625
1626	1626
1627	1627
1628	1628
1629	1629	HB3477 - 44 - LRB103 27010 HLH 53377 b
1630	1630
1631	1631
1632	1632	HB3477- 45 -LRB103 27010 HLH 53377 b HB3477 - 45 - LRB103 27010 HLH 53377 b
1633	1633	HB3477 - 45 - LRB103 27010 HLH 53377 b
1634	1634	1 consideration by or on behalf of the municipality at the time
1635	1635	2 of the completion of the municipal convention hall or upon the
1636	1636	3 retirement or redemption of any bonds or other debt
1637	1637	4 instruments issued by the public-facilities corporation in
1638	1638	5 connection with the development of the municipal convention
1639	1639	6 hall. This exemption includes existing public-facilities
1640	1640	7 corporations as provided in Section 11-65-25 of the Illinois
1641	1641	8 Municipal Code. This paragraph is exempt from the provisions
1642	1642	9 of Section 3-75.
1643	1643	10 (29) Beginning January 1, 2017 and through December 31,
1644	1644	11 2026, menstrual pads, tampons, and menstrual cups.
1645	1645	12 (30) Tangible personal property transferred to a purchaser
1646	1646	13 who is exempt from the tax imposed by this Act by operation of
1647	1647	14 federal law. This paragraph is exempt from the provisions of
1648	1648	15 Section 3-75.
1649	1649	16 (31) Qualified tangible personal property used in the
1650	1650	17 construction or operation of a data center that has been
1651	1651	18 granted a certificate of exemption by the Department of
1652	1652	19 Commerce and Economic Opportunity, whether that tangible
1653	1653	20 personal property is purchased by the owner, operator, or
1654	1654	21 tenant of the data center or by a contractor or subcontractor
1655	1655	22 of the owner, operator, or tenant. Data centers that would
1656	1656	23 have qualified for a certificate of exemption prior to January
1657	1657	24 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
1658	1658	25 General Assembly been in effect, may apply for and obtain an
1659	1659	26 exemption for subsequent purchases of computer equipment or
1660	1660
1661	1661
1662	1662
1663	1663
1664	1664
1665	1665	HB3477 - 45 - LRB103 27010 HLH 53377 b
1666	1666
1667	1667
1668	1668	HB3477- 46 -LRB103 27010 HLH 53377 b HB3477 - 46 - LRB103 27010 HLH 53377 b
1669	1669	HB3477 - 46 - LRB103 27010 HLH 53377 b
1670	1670	1 enabling software purchased or leased to upgrade, supplement,
1671	1671	2 or replace computer equipment or enabling software purchased
1672	1672	3 or leased in the original investment that would have
1673	1673	4 qualified.
1674	1674	5 The Department of Commerce and Economic Opportunity shall
1675	1675	6 grant a certificate of exemption under this item (31) to
1676	1676	7 qualified data centers as defined by Section 605-1025 of the
1677	1677	8 Department of Commerce and Economic Opportunity Law of the
1678	1678	9 Civil Administrative Code of Illinois.
1679	1679	10 For the purposes of this item (31):
1680	1680	11 "Data center" means a building or a series of
1681	1681	12 buildings rehabilitated or constructed to house working
1682	1682	13 servers in one physical location or multiple sites within
1683	1683	14 the State of Illinois.
1684	1684	15 "Qualified tangible personal property" means:
1685	1685	16 electrical systems and equipment; climate control and
1686	1686	17 chilling equipment and systems; mechanical systems and
1687	1687	18 equipment; monitoring and secure systems; emergency
1688	1688	19 generators; hardware; computers; servers; data storage
1689	1689	20 devices; network connectivity equipment; racks; cabinets;
1690	1690	21 telecommunications cabling infrastructure; raised floor
1691	1691	22 systems; peripheral components or systems; software;
1692	1692	23 mechanical, electrical, or plumbing systems; battery
1693	1693	24 systems; cooling systems and towers; temperature control
1694	1694	25 systems; other cabling; and other data center
1695	1695	26 infrastructure equipment and systems necessary to operate
1696	1696
1697	1697
1698	1698
1699	1699
1700	1700
1701	1701	HB3477 - 46 - LRB103 27010 HLH 53377 b
1702	1702
1703	1703
1704	1704	HB3477- 47 -LRB103 27010 HLH 53377 b HB3477 - 47 - LRB103 27010 HLH 53377 b
1705	1705	HB3477 - 47 - LRB103 27010 HLH 53377 b
1706	1706	1 qualified tangible personal property, including fixtures;
1707	1707	2 and component parts of any of the foregoing, including
1708	1708	3 installation, maintenance, repair, refurbishment, and
1709	1709	4 replacement of qualified tangible personal property to
1710	1710	5 generate, transform, transmit, distribute, or manage
1711	1711	6 electricity necessary to operate qualified tangible
1712	1712	7 personal property; and all other tangible personal
1713	1713	8 property that is essential to the operations of a computer
1714	1714	9 data center. The term "qualified tangible personal
1715	1715	10 property" also includes building materials physically
1716	1716	11 incorporated in to the qualifying data center. To document
1717	1717	12 the exemption allowed under this Section, the retailer
1718	1718	13 must obtain from the purchaser a copy of the certificate
1719	1719	14 of eligibility issued by the Department of Commerce and
1720	1720	15 Economic Opportunity.
1721	1721	16 This item (31) is exempt from the provisions of Section
1722	1722	17 3-75.
1723	1723	18 (32) Beginning July 1, 2022, breast pumps, breast pump
1724	1724	19 collection and storage supplies, and breast pump kits. This
1725	1725	20 item (32) is exempt from the provisions of Section 3-75. As
1726	1726	21 used in this item (32):
1727	1727	22 "Breast pump" means an electrically controlled or
1728	1728	23 manually controlled pump device designed or marketed to be
1729	1729	24 used to express milk from a human breast during lactation,
1730	1730	25 including the pump device and any battery, AC adapter, or
1731	1731	26 other power supply unit that is used to power the pump
1732	1732
1733	1733
1734	1734
1735	1735
1736	1736
1737	1737	HB3477 - 47 - LRB103 27010 HLH 53377 b
1738	1738
1739	1739
1740	1740	HB3477- 48 -LRB103 27010 HLH 53377 b HB3477 - 48 - LRB103 27010 HLH 53377 b
1741	1741	HB3477 - 48 - LRB103 27010 HLH 53377 b
1742	1742	1 device and is packaged and sold with the pump device at the
1743	1743	2 time of sale.
1744	1744	3 "Breast pump collection and storage supplies" means
1745	1745	4 items of tangible personal property designed or marketed
1746	1746	5 to be used in conjunction with a breast pump to collect
1747	1747	6 milk expressed from a human breast and to store collected
1748	1748	7 milk until it is ready for consumption.
1749	1749	8 "Breast pump collection and storage supplies"
1750	1750	9 includes, but is not limited to: breast shields and breast
1751	1751	10 shield connectors; breast pump tubes and tubing adapters;
1752	1752	11 breast pump valves and membranes; backflow protectors and
1753	1753	12 backflow protector adaptors; bottles and bottle caps
1754	1754	13 specific to the operation of the breast pump; and breast
1755	1755	14 milk storage bags.
1756	1756	15 "Breast pump collection and storage supplies" does not
1757	1757	16 include: (1) bottles and bottle caps not specific to the
1758	1758	17 operation of the breast pump; (2) breast pump travel bags
1759	1759	18 and other similar carrying accessories, including ice
1760	1760	19 packs, labels, and other similar products; (3) breast pump
1761	1761	20 cleaning supplies; (4) nursing bras, bra pads, breast
1762	1762	21 shells, and other similar products; and (5) creams,
1763	1763	22 ointments, and other similar products that relieve
1764	1764	23 breastfeeding-related symptoms or conditions of the
1765	1765	24 breasts or nipples, unless sold as part of a breast pump
1766	1766	25 kit that is pre-packaged by the breast pump manufacturer
1767	1767	26 or distributor.
1768	1768
1769	1769
1770	1770
1771	1771
1772	1772
1773	1773	HB3477 - 48 - LRB103 27010 HLH 53377 b
1774	1774
1775	1775
1776	1776	HB3477- 49 -LRB103 27010 HLH 53377 b HB3477 - 49 - LRB103 27010 HLH 53377 b
1777	1777	HB3477 - 49 - LRB103 27010 HLH 53377 b
1778	1778	1 "Breast pump kit" means a kit that: (1) contains no
1779	1779	2 more than a breast pump, breast pump collection and
1780	1780	3 storage supplies, a rechargeable battery for operating the
1781	1781	4 breast pump, a breastmilk cooler, bottle stands, ice
1782	1782	5 packs, and a breast pump carrying case; and (2) is
1783	1783	6 pre-packaged as a breast pump kit by the breast pump
1784	1784	7 manufacturer or distributor.
1785	1785	8 (33) (32) Tangible personal property sold by or on behalf
1786	1786	9 of the State Treasurer pursuant to the Revised Uniform
1787	1787	10 Unclaimed Property Act. This item (33) (32) is exempt from the
1788	1788	11 provisions of Section 3-75.
1789	1789	12 (34) Beginning on July 1, 2022, food prepared for
1790	1790	13 immediate consumption and transferred incident to a sale of
1791	1791	14 service subject to this Act or the Service Occupation Tax Act
1792	1792	15 by an entity licensed under the Hospital Licensing Act, the
1793	1793	16 Nursing Home Care Act, the Assisted Living and Shared Housing
1794	1794	17 Act, the ID/DD Community Care Act, the MC/DD Act, the
1795	1795	18 Specialized Mental Health Rehabilitation Act of 2013, or the
1796	1796	19 Child Care Act of 1969, or an entity that holds a permit issued
1797	1797	20 pursuant to the Life Care Facilities Act, as defined in
1798	1798	21 Section 3-10. This item (34) is exempt from the provisions of
1799	1799	22 Section 3-75.
1800	1800	23 (35) Beginning on July 1, 2022, food for human consumption
1801	1801	24 that is to be consumed off the premises where it is sold, as
1802	1802	25 defined in Section 3-10, except excluding alcoholic beverages,
1803	1803	26 food consisting of or infused with adult use cannabis, soft
1804	1804
1805	1805
1806	1806
1807	1807
1808	1808
1809	1809	HB3477 - 49 - LRB103 27010 HLH 53377 b
1810	1810
1811	1811
1812	1812	HB3477- 50 -LRB103 27010 HLH 53377 b HB3477 - 50 - LRB103 27010 HLH 53377 b
1813	1813	HB3477 - 50 - LRB103 27010 HLH 53377 b
1814	1814	1 drinks, and food that has been prepared for immediate
1815	1815	2 consumption. This item (35) is exempt from the provisions of
1816	1816	3 Section 3-75.
1817	1817	4 (36) Beginning on July 1, 2023, the following items, as
1818	1818	5 defined in Section 3-10:
1819	1819	6 (A) prescription and nonprescription medicines, drugs,
1820	1820	7 and medical appliances;
1821	1821	8 (B) products classified as Class III medical devices
1822	1822	9 by the United States Food and Drug Administration that are
1823	1823	10 used for cancer treatment pursuant to a prescription, as
1824	1824	11 well as any accessories and components related to those
1825	1825	12 devices;
1826	1826	13 (C) modifications to a motor vehicle for the purpose
1827	1827	14 of rendering it usable by a person with a disability; and
1828	1828	15 (D) insulin, blood sugar testing materials, syringes,
1829	1829	16 and needles used by human diabetics.
1830	1830	17 This item (36) is exempt from the provisions of Section
1831	1831	18 3-75.
1832	1832	19 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
1833	1833	20 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1834	1834	21 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1835	1835	22 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
1836	1836	23 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
1837	1837	24 Sec. 3-10. Rate of tax. Unless otherwise provided in this
1838	1838	25 Section, the tax imposed by this Act is at the rate of 6.25% of
1839	1839
1840	1840
1841	1841
1842	1842
1843	1843
1844	1844	HB3477 - 50 - LRB103 27010 HLH 53377 b
1845	1845
1846	1846
1847	1847	HB3477- 51 -LRB103 27010 HLH 53377 b HB3477 - 51 - LRB103 27010 HLH 53377 b
1848	1848	HB3477 - 51 - LRB103 27010 HLH 53377 b
1849	1849	1 the selling price of tangible personal property transferred as
1850	1850	2 an incident to the sale of service, but, for the purpose of
1851	1851	3 computing this tax, in no event shall the selling price be less
1852	1852	4 than the cost price of the property to the serviceman.
1853	1853	5 Beginning on July 1, 2000 and through December 31, 2000,
1854	1854	6 with respect to motor fuel, as defined in Section 1.1 of the
1855	1855	7 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1856	1856	8 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1857	1857	9 With respect to gasohol, as defined in the Use Tax Act, the
1858	1858	10 tax imposed by this Act applies to (i) 70% of the selling price
1859	1859	11 of property transferred as an incident to the sale of service
1860	1860	12 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
1861	1861	13 of the selling price of property transferred as an incident to
1862	1862	14 the sale of service on or after July 1, 2003 and on or before
1863	1863	15 July 1, 2017, and (iii) 100% of the selling price thereafter.
1864	1864	16 If, at any time, however, the tax under this Act on sales of
1865	1865	17 gasohol, as defined in the Use Tax Act, is imposed at the rate
1866	1866	18 of 1.25%, then the tax imposed by this Act applies to 100% of
1867	1867	19 the proceeds of sales of gasohol made during that time.
1868	1868	20 With respect to majority blended ethanol fuel, as defined
1869	1869	21 in the Use Tax Act, the tax imposed by this Act does not apply
1870	1870	22 to the selling price of property transferred as an incident to
1871	1871	23 the sale of service on or after July 1, 2003 and on or before
1872	1872	24 December 31, 2023 but applies to 100% of the selling price
1873	1873	25 thereafter.
1874	1874	26 With respect to biodiesel blends, as defined in the Use
1875	1875
1876	1876
1877	1877
1878	1878
1879	1879
1880	1880	HB3477 - 51 - LRB103 27010 HLH 53377 b
1881	1881
1882	1882
1883	1883	HB3477- 52 -LRB103 27010 HLH 53377 b HB3477 - 52 - LRB103 27010 HLH 53377 b
1884	1884	HB3477 - 52 - LRB103 27010 HLH 53377 b
1885	1885	1 Tax Act, with no less than 1% and no more than 10% biodiesel,
1886	1886	2 the tax imposed by this Act applies to (i) 80% of the selling
1887	1887	3 price of property transferred as an incident to the sale of
1888	1888	4 service on or after July 1, 2003 and on or before December 31,
1889	1889	5 2018 and (ii) 100% of the proceeds of the selling price after
1890	1890	6 December 31, 2018 and before January 1, 2024. On and after
1891	1891	7 January 1, 2024 and on or before December 31, 2030, the
1892	1892	8 taxation of biodiesel, renewable diesel, and biodiesel blends
1893	1893	9 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1894	1894	10 at any time, however, the tax under this Act on sales of
1895	1895	11 biodiesel blends, as defined in the Use Tax Act, with no less
1896	1896	12 than 1% and no more than 10% biodiesel is imposed at the rate
1897	1897	13 of 1.25%, then the tax imposed by this Act applies to 100% of
1898	1898	14 the proceeds of sales of biodiesel blends with no less than 1%
1899	1899	15 and no more than 10% biodiesel made during that time.
1900	1900	16 With respect to biodiesel, as defined in the Use Tax Act,
1901	1901	17 and biodiesel blends, as defined in the Use Tax Act, with more
1902	1902	18 than 10% but no more than 99% biodiesel, the tax imposed by
1903	1903	19 this Act does not apply to the proceeds of the selling price of
1904	1904	20 property transferred as an incident to the sale of service on
1905	1905	21 or after July 1, 2003 and on or before December 31, 2023. On
1906	1906	22 and after January 1, 2024 and on or before December 31, 2030,
1907	1907	23 the taxation of biodiesel, renewable diesel, and biodiesel
1908	1908	24 blends shall be as provided in Section 3-5.1 of the Use Tax
1909	1909	25 Act.
1910	1910	26 At the election of any registered serviceman made for each
1911	1911
1912	1912
1913	1913
1914	1914
1915	1915
1916	1916	HB3477 - 52 - LRB103 27010 HLH 53377 b
1917	1917
1918	1918
1919	1919	HB3477- 53 -LRB103 27010 HLH 53377 b HB3477 - 53 - LRB103 27010 HLH 53377 b
1920	1920	HB3477 - 53 - LRB103 27010 HLH 53377 b
1921	1921	1 fiscal year, sales of service in which the aggregate annual
1922	1922	2 cost price of tangible personal property transferred as an
1923	1923	3 incident to the sales of service is less than 35%, or 75% in
1924	1924	4 the case of servicemen transferring prescription drugs or
1925	1925	5 servicemen engaged in graphic arts production, of the
1926	1926	6 aggregate annual total gross receipts from all sales of
1927	1927	7 service, the tax imposed by this Act shall be based on the
1928	1928	8 serviceman's cost price of the tangible personal property
1929	1929	9 transferred as an incident to the sale of those services.
1930	1930	10 Until July 1, 2022 and beginning again on July 1, 2023, the
1931	1931	11 tax shall be imposed at the rate of 1% on food prepared for
1932	1932	12 immediate consumption and transferred incident to a sale of
1933	1933	13 service subject to this Act or the Service Occupation Tax Act
1934	1934	14 by an entity licensed under the Hospital Licensing Act, the
1935	1935	15 Nursing Home Care Act, the Assisted Living and Shared Housing
1936	1936	16 Act, the ID/DD Community Care Act, the MC/DD Act, the
1937	1937	17 Specialized Mental Health Rehabilitation Act of 2013, or the
1938	1938	18 Child Care Act of 1969, or an entity that holds a permit issued
1939	1939	19 pursuant to the Life Care Facilities Act. Until July 1, 2022
1940	1940	20 and beginning again on July 1, 2023, the tax shall also be
1941	1941	21 imposed at the rate of 1% on food for human consumption that is
1942	1942	22 to be consumed off the premises where it is sold (other than
1943	1943	23 alcoholic beverages, food consisting of or infused with adult
1944	1944	24 use cannabis, soft drinks, and food that has been prepared for
1945	1945	25 immediate consumption and is not otherwise included in this
1946	1946	26 paragraph).
1947	1947
1948	1948
1949	1949
1950	1950
1951	1951
1952	1952	HB3477 - 53 - LRB103 27010 HLH 53377 b
1953	1953
1954	1954
1955	1955	HB3477- 54 -LRB103 27010 HLH 53377 b HB3477 - 54 - LRB103 27010 HLH 53377 b
1956	1956	HB3477 - 54 - LRB103 27010 HLH 53377 b
1957	1957	1 Beginning on July 1, 2022 and until July 1, 2023, the tax
1958	1958	2 shall be imposed at the rate of 0% on food prepared for
1959	1959	3 immediate consumption and transferred incident to a sale of
1960	1960	4 service subject to this Act or the Service Occupation Tax Act
1961	1961	5 by an entity licensed under the Hospital Licensing Act, the
1962	1962	6 Nursing Home Care Act, the Assisted Living and Shared Housing
1963	1963	7 Act, the ID/DD Community Care Act, the MC/DD Act, the
1964	1964	8 Specialized Mental Health Rehabilitation Act of 2013, or the
1965	1965	9 Child Care Act of 1969, or an entity that holds a permit issued
1966	1966	10 pursuant to the Life Care Facilities Act. Beginning on July 1,
1967	1967	11 2022 and until July 1, 2023, the tax shall also be imposed at
1968	1968	12 the rate of 0% on food for human consumption that is to be
1969	1969	13 consumed off the premises where it is sold (other than
1970	1970	14 alcoholic beverages, food consisting of or infused with adult
1971	1971	15 use cannabis, soft drinks, and food that has been prepared for
1972	1972	16 immediate consumption and is not otherwise included in this
1973	1973	17 paragraph).
1974	1974	18 Until July 1, 2023, the The tax shall also be imposed at
1975	1975	19 the rate of 1% on prescription and nonprescription medicines,
1976	1976	20 drugs, medical appliances, products classified as Class III
1977	1977	21 medical devices by the United States Food and Drug
1978	1978	22 Administration that are used for cancer treatment pursuant to
1979	1979	23 a prescription, as well as any accessories and components
1980	1980	24 related to those devices, modifications to a motor vehicle for
1981	1981	25 the purpose of rendering it usable by a person with a
1982	1982	26 disability, and insulin, blood sugar testing materials,
1983	1983
1984	1984
1985	1985
1986	1986
1987	1987
1988	1988	HB3477 - 54 - LRB103 27010 HLH 53377 b
1989	1989
1990	1990
1991	1991	HB3477- 55 -LRB103 27010 HLH 53377 b HB3477 - 55 - LRB103 27010 HLH 53377 b
1992	1992	HB3477 - 55 - LRB103 27010 HLH 53377 b
1993	1993	1 syringes, and needles used by human diabetics. For the
1994	1994	2 purposes of this Section, until September 1, 2009: the term
1995	1995	3 "soft drinks" means any complete, finished, ready-to-use,
1996	1996	4 non-alcoholic drink, whether carbonated or not, including, but
1997	1997	5 not limited to, soda water, cola, fruit juice, vegetable
1998	1998	6 juice, carbonated water, and all other preparations commonly
1999	1999	7 known as soft drinks of whatever kind or description that are
2000	2000	8 contained in any closed or sealed bottle, can, carton, or
2001	2001	9 container, regardless of size; but "soft drinks" does not
2002	2002	10 include coffee, tea, non-carbonated water, infant formula,
2003	2003	11 milk or milk products as defined in the Grade A Pasteurized
2004	2004	12 Milk and Milk Products Act, or drinks containing 50% or more
2005	2005	13 natural fruit or vegetable juice.
2006	2006	14 Notwithstanding any other provisions of this Act,
2007	2007	15 beginning September 1, 2009, "soft drinks" means non-alcoholic
2008	2008	16 beverages that contain natural or artificial sweeteners. "Soft
2009	2009	17 drinks" does do not include beverages that contain milk or
2010	2010	18 milk products, soy, rice or similar milk substitutes, or
2011	2011	19 greater than 50% of vegetable or fruit juice by volume.
2012	2012	20 Until August 1, 2009, and notwithstanding any other
2013	2013	21 provisions of this Act, "food for human consumption that is to
2014	2014	22 be consumed off the premises where it is sold" includes all
2015	2015	23 food sold through a vending machine, except soft drinks and
2016	2016	24 food products that are dispensed hot from a vending machine,
2017	2017	25 regardless of the location of the vending machine. Beginning
2018	2018	26 August 1, 2009, and notwithstanding any other provisions of
2019	2019
2020	2020
2021	2021
2022	2022
2023	2023
2024	2024	HB3477 - 55 - LRB103 27010 HLH 53377 b
2025	2025
2026	2026
2027	2027	HB3477- 56 -LRB103 27010 HLH 53377 b HB3477 - 56 - LRB103 27010 HLH 53377 b
2028	2028	HB3477 - 56 - LRB103 27010 HLH 53377 b
2029	2029	1 this Act, "food for human consumption that is to be consumed
2030	2030	2 off the premises where it is sold" includes all food sold
2031	2031	3 through a vending machine, except soft drinks, candy, and food
2032	2032	4 products that are dispensed hot from a vending machine,
2033	2033	5 regardless of the location of the vending machine.
2034	2034	6 Notwithstanding any other provisions of this Act,
2035	2035	7 beginning September 1, 2009, "food for human consumption that
2036	2036	8 is to be consumed off the premises where it is sold" does not
2037	2037	9 include candy. For purposes of this Section, "candy" means a
2038	2038	10 preparation of sugar, honey, or other natural or artificial
2039	2039	11 sweeteners in combination with chocolate, fruits, nuts or
2040	2040	12 other ingredients or flavorings in the form of bars, drops, or
2041	2041	13 pieces. "Candy" does not include any preparation that contains
2042	2042	14 flour or requires refrigeration.
2043	2043	15 Notwithstanding any other provisions of this Act,
2044	2044	16 beginning September 1, 2009, "nonprescription medicines and
2045	2045	17 drugs" does not include grooming and hygiene products. For
2046	2046	18 purposes of this Section, "grooming and hygiene products"
2047	2047	19 includes, but is not limited to, soaps and cleaning solutions,
2048	2048	20 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2049	2049	21 lotions and screens, unless those products are available by
2050	2050	22 prescription only, regardless of whether the products meet the
2051	2051	23 definition of "over-the-counter-drugs". For the purposes of
2052	2052	24 this paragraph, "over-the-counter-drug" means a drug for human
2053	2053	25 use that contains a label that identifies the product as a drug
2054	2054	26 as required by 21 CFR C.F.R. 201.66. The
2055	2055
2056	2056
2057	2057
2058	2058
2059	2059
2060	2060	HB3477 - 56 - LRB103 27010 HLH 53377 b
2061	2061
2062	2062
2063	2063	HB3477- 57 -LRB103 27010 HLH 53377 b HB3477 - 57 - LRB103 27010 HLH 53377 b
2064	2064	HB3477 - 57 - LRB103 27010 HLH 53377 b
2065	2065	1 "over-the-counter-drug" label includes:
2066	2066	2 (A) a A "Drug Facts" panel; or
2067	2067	3 (B) a A statement of the "active ingredient(s)" with a
2068	2068	4 list of those ingredients contained in the compound,
2069	2069	5 substance or preparation.
2070	2070	6 Beginning on January 1, 2014 (the effective date of Public
2071	2071	7 Act 98-122), "prescription and nonprescription medicines and
2072	2072	8 drugs" includes medical cannabis purchased from a registered
2073	2073	9 dispensing organization under the Compassionate Use of Medical
2074	2074	10 Cannabis Program Act.
2075	2075	11 As used in this Section, "adult use cannabis" means
2076	2076	12 cannabis subject to tax under the Cannabis Cultivation
2077	2077	13 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2078	2078	14 and does not include cannabis subject to tax under the
2079	2079	15 Compassionate Use of Medical Cannabis Program Act.
2080	2080	16 If the property that is acquired from a serviceman is
2081	2081	17 acquired outside Illinois and used outside Illinois before
2082	2082	18 being brought to Illinois for use here and is taxable under
2083	2083	19 this Act, the "selling price" on which the tax is computed
2084	2084	20 shall be reduced by an amount that represents a reasonable
2085	2085	21 allowance for depreciation for the period of prior
2086	2086	22 out-of-state use.
2087	2087	23 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2088	2088	24 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2089	2089	25 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
2090	2090	26 60-20, eff. 4-19-22; revised 6-1-22.)
2091	2091
2092	2092
2093	2093
2094	2094
2095	2095
2096	2096	HB3477 - 57 - LRB103 27010 HLH 53377 b
2097	2097
2098	2098
2099	2099	HB3477- 58 -LRB103 27010 HLH 53377 b HB3477 - 58 - LRB103 27010 HLH 53377 b
2100	2100	HB3477 - 58 - LRB103 27010 HLH 53377 b
2101	2101	1 Section 15. The Service Occupation Tax Act is amended by
2102	2102	2 changing Sections 3-5 and 3-10 as follows:
2103	2103	3 (35 ILCS 115/3-5)
2104	2104	4 Sec. 3-5. Exemptions. The following tangible personal
2105	2105	5 property is exempt from the tax imposed by this Act:
2106	2106	6 (1) Personal property sold by a corporation, society,
2107	2107	7 association, foundation, institution, or organization, other
2108	2108	8 than a limited liability company, that is organized and
2109	2109	9 operated as a not-for-profit service enterprise for the
2110	2110	10 benefit of persons 65 years of age or older if the personal
2111	2111	11 property was not purchased by the enterprise for the purpose
2112	2112	12 of resale by the enterprise.
2113	2113	13 (2) Personal property purchased by a not-for-profit
2114	2114	14 Illinois county fair association for use in conducting,
2115	2115	15 operating, or promoting the county fair.
2116	2116	16 (3) Personal property purchased by any not-for-profit arts
2117	2117	17 or cultural organization that establishes, by proof required
2118	2118	18 by the Department by rule, that it has received an exemption
2119	2119	19 under Section 501(c)(3) of the Internal Revenue Code and that
2120	2120	20 is organized and operated primarily for the presentation or
2121	2121	21 support of arts or cultural programming, activities, or
2122	2122	22 services. These organizations include, but are not limited to,
2123	2123	23 music and dramatic arts organizations such as symphony
2124	2124	24 orchestras and theatrical groups, arts and cultural service
2125	2125
2126	2126
2127	2127
2128	2128
2129	2129
2130	2130	HB3477 - 58 - LRB103 27010 HLH 53377 b
2131	2131
2132	2132
2133	2133	HB3477- 59 -LRB103 27010 HLH 53377 b HB3477 - 59 - LRB103 27010 HLH 53377 b
2134	2134	HB3477 - 59 - LRB103 27010 HLH 53377 b
2135	2135	1 organizations, local arts councils, visual arts organizations,
2136	2136	2 and media arts organizations. On and after July 1, 2001 (the
2137	2137	3 effective date of Public Act 92-35), however, an entity
2138	2138	4 otherwise eligible for this exemption shall not make tax-free
2139	2139	5 purchases unless it has an active identification number issued
2140	2140	6 by the Department.
2141	2141	7 (4) Legal tender, currency, medallions, or gold or silver
2142	2142	8 coinage issued by the State of Illinois, the government of the
2143	2143	9 United States of America, or the government of any foreign
2144	2144	10 country, and bullion.
2145	2145	11 (5) Until July 1, 2003 and beginning again on September 1,
2146	2146	12 2004 through August 30, 2014, graphic arts machinery and
2147	2147	13 equipment, including repair and replacement parts, both new
2148	2148	14 and used, and including that manufactured on special order or
2149	2149	15 purchased for lease, certified by the purchaser to be used
2150	2150	16 primarily for graphic arts production. Equipment includes
2151	2151	17 chemicals or chemicals acting as catalysts but only if the
2152	2152	18 chemicals or chemicals acting as catalysts effect a direct and
2153	2153	19 immediate change upon a graphic arts product. Beginning on
2154	2154	20 July 1, 2017, graphic arts machinery and equipment is included
2155	2155	21 in the manufacturing and assembling machinery and equipment
2156	2156	22 exemption under Section 2 of this Act.
2157	2157	23 (6) Personal property sold by a teacher-sponsored student
2158	2158	24 organization affiliated with an elementary or secondary school
2159	2159	25 located in Illinois.
2160	2160	26 (7) Farm machinery and equipment, both new and used,
2161	2161
2162	2162
2163	2163
2164	2164
2165	2165
2166	2166	HB3477 - 59 - LRB103 27010 HLH 53377 b
2167	2167
2168	2168
2169	2169	HB3477- 60 -LRB103 27010 HLH 53377 b HB3477 - 60 - LRB103 27010 HLH 53377 b
2170	2170	HB3477 - 60 - LRB103 27010 HLH 53377 b
2171	2171	1 including that manufactured on special order, certified by the
2172	2172	2 purchaser to be used primarily for production agriculture or
2173	2173	3 State or federal agricultural programs, including individual
2174	2174	4 replacement parts for the machinery and equipment, including
2175	2175	5 machinery and equipment purchased for lease, and including
2176	2176	6 implements of husbandry defined in Section 1-130 of the
2177	2177	7 Illinois Vehicle Code, farm machinery and agricultural
2178	2178	8 chemical and fertilizer spreaders, and nurse wagons required
2179	2179	9 to be registered under Section 3-809 of the Illinois Vehicle
2180	2180	10 Code, but excluding other motor vehicles required to be
2181	2181	11 registered under the Illinois Vehicle Code. Horticultural
2182	2182	12 polyhouses or hoop houses used for propagating, growing, or
2183	2183	13 overwintering plants shall be considered farm machinery and
2184	2184	14 equipment under this item (7). Agricultural chemical tender
2185	2185	15 tanks and dry boxes shall include units sold separately from a
2186	2186	16 motor vehicle required to be licensed and units sold mounted
2187	2187	17 on a motor vehicle required to be licensed if the selling price
2188	2188	18 of the tender is separately stated.
2189	2189	19 Farm machinery and equipment shall include precision
2190	2190	20 farming equipment that is installed or purchased to be
2191	2191	21 installed on farm machinery and equipment including, but not
2192	2192	22 limited to, tractors, harvesters, sprayers, planters, seeders,
2193	2193	23 or spreaders. Precision farming equipment includes, but is not
2194	2194	24 limited to, soil testing sensors, computers, monitors,
2195	2195	25 software, global positioning and mapping systems, and other
2196	2196	26 such equipment.
2197	2197
2198	2198
2199	2199
2200	2200
2201	2201
2202	2202	HB3477 - 60 - LRB103 27010 HLH 53377 b
2203	2203
2204	2204
2205	2205	HB3477- 61 -LRB103 27010 HLH 53377 b HB3477 - 61 - LRB103 27010 HLH 53377 b
2206	2206	HB3477 - 61 - LRB103 27010 HLH 53377 b
2207	2207	1 Farm machinery and equipment also includes computers,
2208	2208	2 sensors, software, and related equipment used primarily in the
2209	2209	3 computer-assisted operation of production agriculture
2210	2210	4 facilities, equipment, and activities such as, but not limited
2211	2211	5 to, the collection, monitoring, and correlation of animal and
2212	2212	6 crop data for the purpose of formulating animal diets and
2213	2213	7 agricultural chemicals. This item (7) is exempt from the
2214	2214	8 provisions of Section 3-55.
2215	2215	9 (8) Until June 30, 2013, fuel and petroleum products sold
2216	2216	10 to or used by an air common carrier, certified by the carrier
2217	2217	11 to be used for consumption, shipment, or storage in the
2218	2218	12 conduct of its business as an air common carrier, for a flight
2219	2219	13 destined for or returning from a location or locations outside
2220	2220	14 the United States without regard to previous or subsequent
2221	2221	15 domestic stopovers.
2222	2222	16 Beginning July 1, 2013, fuel and petroleum products sold
2223	2223	17 to or used by an air carrier, certified by the carrier to be
2224	2224	18 used for consumption, shipment, or storage in the conduct of
2225	2225	19 its business as an air common carrier, for a flight that (i) is
2226	2226	20 engaged in foreign trade or is engaged in trade between the
2227	2227	21 United States and any of its possessions and (ii) transports
2228	2228	22 at least one individual or package for hire from the city of
2229	2229	23 origination to the city of final destination on the same
2230	2230	24 aircraft, without regard to a change in the flight number of
2231	2231	25 that aircraft.
2232	2232	26 (9) Proceeds of mandatory service charges separately
2233	2233
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238	HB3477 - 61 - LRB103 27010 HLH 53377 b
2239	2239
2240	2240
2241	2241	HB3477- 62 -LRB103 27010 HLH 53377 b HB3477 - 62 - LRB103 27010 HLH 53377 b
2242	2242	HB3477 - 62 - LRB103 27010 HLH 53377 b
2243	2243	1 stated on customers' bills for the purchase and consumption of
2244	2244	2 food and beverages, to the extent that the proceeds of the
2245	2245	3 service charge are in fact turned over as tips or as a
2246	2246	4 substitute for tips to the employees who participate directly
2247	2247	5 in preparing, serving, hosting or cleaning up the food or
2248	2248	6 beverage function with respect to which the service charge is
2249	2249	7 imposed.
2250	2250	8 (10) Until July 1, 2003, oil field exploration, drilling,
2251	2251	9 and production equipment, including (i) rigs and parts of
2252	2252	10 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2253	2253	11 pipe and tubular goods, including casing and drill strings,
2254	2254	12 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2255	2255	13 lines, (v) any individual replacement part for oil field
2256	2256	14 exploration, drilling, and production equipment, and (vi)
2257	2257	15 machinery and equipment purchased for lease; but excluding
2258	2258	16 motor vehicles required to be registered under the Illinois
2259	2259	17 Vehicle Code.
2260	2260	18 (11) Photoprocessing machinery and equipment, including
2261	2261	19 repair and replacement parts, both new and used, including
2262	2262	20 that manufactured on special order, certified by the purchaser
2263	2263	21 to be used primarily for photoprocessing, and including
2264	2264	22 photoprocessing machinery and equipment purchased for lease.
2265	2265	23 (12) Until July 1, 2028, coal and aggregate exploration,
2266	2266	24 mining, off-highway hauling, processing, maintenance, and
2267	2267	25 reclamation equipment, including replacement parts and
2268	2268	26 equipment, and including equipment purchased for lease, but
2269	2269
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274	HB3477 - 62 - LRB103 27010 HLH 53377 b
2275	2275
2276	2276
2277	2277	HB3477- 63 -LRB103 27010 HLH 53377 b HB3477 - 63 - LRB103 27010 HLH 53377 b
2278	2278	HB3477 - 63 - LRB103 27010 HLH 53377 b
2279	2279	1 excluding motor vehicles required to be registered under the
2280	2280	2 Illinois Vehicle Code. The changes made to this Section by
2281	2281	3 Public Act 97-767 apply on and after July 1, 2003, but no claim
2282	2282	4 for credit or refund is allowed on or after August 16, 2013
2283	2283	5 (the effective date of Public Act 98-456) for such taxes paid
2284	2284	6 during the period beginning July 1, 2003 and ending on August
2285	2285	7 16, 2013 (the effective date of Public Act 98-456).
2286	2286	8 (13) Beginning January 1, 1992 and through June 30, 2016,
2287	2287	9 food for human consumption that is to be consumed off the
2288	2288	10 premises where it is sold (other than alcoholic beverages,
2289	2289	11 soft drinks and food that has been prepared for immediate
2290	2290	12 consumption) and prescription and non-prescription medicines,
2291	2291	13 drugs, medical appliances, and insulin, urine testing
2292	2292	14 materials, syringes, and needles used by diabetics, for human
2293	2293	15 use, when purchased for use by a person receiving medical
2294	2294	16 assistance under Article V of the Illinois Public Aid Code who
2295	2295	17 resides in a licensed long-term care facility, as defined in
2296	2296	18 the Nursing Home Care Act, or in a licensed facility as defined
2297	2297	19 in the ID/DD Community Care Act, the MC/DD Act, or the
2298	2298	20 Specialized Mental Health Rehabilitation Act of 2013.
2299	2299	21 (14) Semen used for artificial insemination of livestock
2300	2300	22 for direct agricultural production.
2301	2301	23 (15) Horses, or interests in horses, registered with and
2302	2302	24 meeting the requirements of any of the Arabian Horse Club
2303	2303	25 Registry of America, Appaloosa Horse Club, American Quarter
2304	2304	26 Horse Association, United States Trotting Association, or
2305	2305
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310	HB3477 - 63 - LRB103 27010 HLH 53377 b
2311	2311
2312	2312
2313	2313	HB3477- 64 -LRB103 27010 HLH 53377 b HB3477 - 64 - LRB103 27010 HLH 53377 b
2314	2314	HB3477 - 64 - LRB103 27010 HLH 53377 b
2315	2315	1 Jockey Club, as appropriate, used for purposes of breeding or
2316	2316	2 racing for prizes. This item (15) is exempt from the
2317	2317	3 provisions of Section 3-55, and the exemption provided for
2318	2318	4 under this item (15) applies for all periods beginning May 30,
2319	2319	5 1995, but no claim for credit or refund is allowed on or after
2320	2320	6 January 1, 2008 (the effective date of Public Act 95-88) for
2321	2321	7 such taxes paid during the period beginning May 30, 2000 and
2322	2322	8 ending on January 1, 2008 (the effective date of Public Act
2323	2323	9 95-88).
2324	2324	10 (16) Computers and communications equipment utilized for
2325	2325	11 any hospital purpose and equipment used in the diagnosis,
2326	2326	12 analysis, or treatment of hospital patients sold to a lessor
2327	2327	13 who leases the equipment, under a lease of one year or longer
2328	2328	14 executed or in effect at the time of the purchase, to a
2329	2329	15 hospital that has been issued an active tax exemption
2330	2330	16 identification number by the Department under Section 1g of
2331	2331	17 the Retailers' Occupation Tax Act.
2332	2332	18 (17) Personal property sold to a lessor who leases the
2333	2333	19 property, under a lease of one year or longer executed or in
2334	2334	20 effect at the time of the purchase, to a governmental body that
2335	2335	21 has been issued an active tax exemption identification number
2336	2336	22 by the Department under Section 1g of the Retailers'
2337	2337	23 Occupation Tax Act.
2338	2338	24 (18) Beginning with taxable years ending on or after
2339	2339	25 December 31, 1995 and ending with taxable years ending on or
2340	2340	26 before December 31, 2004, personal property that is donated
2341	2341
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346	HB3477 - 64 - LRB103 27010 HLH 53377 b
2347	2347
2348	2348
2349	2349	HB3477- 65 -LRB103 27010 HLH 53377 b HB3477 - 65 - LRB103 27010 HLH 53377 b
2350	2350	HB3477 - 65 - LRB103 27010 HLH 53377 b
2351	2351	1 for disaster relief to be used in a State or federally declared
2352	2352	2 disaster area in Illinois or bordering Illinois by a
2353	2353	3 manufacturer or retailer that is registered in this State to a
2354	2354	4 corporation, society, association, foundation, or institution
2355	2355	5 that has been issued a sales tax exemption identification
2356	2356	6 number by the Department that assists victims of the disaster
2357	2357	7 who reside within the declared disaster area.
2358	2358	8 (19) Beginning with taxable years ending on or after
2359	2359	9 December 31, 1995 and ending with taxable years ending on or
2360	2360	10 before December 31, 2004, personal property that is used in
2361	2361	11 the performance of infrastructure repairs in this State,
2362	2362	12 including but not limited to municipal roads and streets,
2363	2363	13 access roads, bridges, sidewalks, waste disposal systems,
2364	2364	14 water and sewer line extensions, water distribution and
2365	2365	15 purification facilities, storm water drainage and retention
2366	2366	16 facilities, and sewage treatment facilities, resulting from a
2367	2367	17 State or federally declared disaster in Illinois or bordering
2368	2368	18 Illinois when such repairs are initiated on facilities located
2369	2369	19 in the declared disaster area within 6 months after the
2370	2370	20 disaster.
2371	2371	21 (20) Beginning July 1, 1999, game or game birds sold at a
2372	2372	22 "game breeding and hunting preserve area" as that term is used
2373	2373	23 in the Wildlife Code. This paragraph is exempt from the
2374	2374	24 provisions of Section 3-55.
2375	2375	25 (21) A motor vehicle, as that term is defined in Section
2376	2376	26 1-146 of the Illinois Vehicle Code, that is donated to a
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	HB3477 - 65 - LRB103 27010 HLH 53377 b
2383	2383
2384	2384
2385	2385	HB3477- 66 -LRB103 27010 HLH 53377 b HB3477 - 66 - LRB103 27010 HLH 53377 b
2386	2386	HB3477 - 66 - LRB103 27010 HLH 53377 b
2387	2387	1 corporation, limited liability company, society, association,
2388	2388	2 foundation, or institution that is determined by the
2389	2389	3 Department to be organized and operated exclusively for
2390	2390	4 educational purposes. For purposes of this exemption, "a
2391	2391	5 corporation, limited liability company, society, association,
2392	2392	6 foundation, or institution organized and operated exclusively
2393	2393	7 for educational purposes" means all tax-supported public
2394	2394	8 schools, private schools that offer systematic instruction in
2395	2395	9 useful branches of learning by methods common to public
2396	2396	10 schools and that compare favorably in their scope and
2397	2397	11 intensity with the course of study presented in tax-supported
2398	2398	12 schools, and vocational or technical schools or institutes
2399	2399	13 organized and operated exclusively to provide a course of
2400	2400	14 study of not less than 6 weeks duration and designed to prepare
2401	2401	15 individuals to follow a trade or to pursue a manual,
2402	2402	16 technical, mechanical, industrial, business, or commercial
2403	2403	17 occupation.
2404	2404	18 (22) Beginning January 1, 2000, personal property,
2405	2405	19 including food, purchased through fundraising events for the
2406	2406	20 benefit of a public or private elementary or secondary school,
2407	2407	21 a group of those schools, or one or more school districts if
2408	2408	22 the events are sponsored by an entity recognized by the school
2409	2409	23 district that consists primarily of volunteers and includes
2410	2410	24 parents and teachers of the school children. This paragraph
2411	2411	25 does not apply to fundraising events (i) for the benefit of
2412	2412	26 private home instruction or (ii) for which the fundraising
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	HB3477 - 66 - LRB103 27010 HLH 53377 b
2419	2419
2420	2420
2421	2421	HB3477- 67 -LRB103 27010 HLH 53377 b HB3477 - 67 - LRB103 27010 HLH 53377 b
2422	2422	HB3477 - 67 - LRB103 27010 HLH 53377 b
2423	2423	1 entity purchases the personal property sold at the events from
2424	2424	2 another individual or entity that sold the property for the
2425	2425	3 purpose of resale by the fundraising entity and that profits
2426	2426	4 from the sale to the fundraising entity. This paragraph is
2427	2427	5 exempt from the provisions of Section 3-55.
2428	2428	6 (23) Beginning January 1, 2000 and through December 31,
2429	2429	7 2001, new or used automatic vending machines that prepare and
2430	2430	8 serve hot food and beverages, including coffee, soup, and
2431	2431	9 other items, and replacement parts for these machines.
2432	2432	10 Beginning January 1, 2002 and through June 30, 2003, machines
2433	2433	11 and parts for machines used in commercial, coin-operated
2434	2434	12 amusement and vending business if a use or occupation tax is
2435	2435	13 paid on the gross receipts derived from the use of the
2436	2436	14 commercial, coin-operated amusement and vending machines. This
2437	2437	15 paragraph is exempt from the provisions of Section 3-55.
2438	2438	16 (24) Beginning on August 2, 2001 (the effective date of
2439	2439	17 Public Act 92-227), computers and communications equipment
2440	2440	18 utilized for any hospital purpose and equipment used in the
2441	2441	19 diagnosis, analysis, or treatment of hospital patients sold to
2442	2442	20 a lessor who leases the equipment, under a lease of one year or
2443	2443	21 longer executed or in effect at the time of the purchase, to a
2444	2444	22 hospital that has been issued an active tax exemption
2445	2445	23 identification number by the Department under Section 1g of
2446	2446	24 the Retailers' Occupation Tax Act. This paragraph is exempt
2447	2447	25 from the provisions of Section 3-55.
2448	2448	26 (25) Beginning on August 2, 2001 (the effective date of
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	HB3477 - 67 - LRB103 27010 HLH 53377 b
2455	2455
2456	2456
2457	2457	HB3477- 68 -LRB103 27010 HLH 53377 b HB3477 - 68 - LRB103 27010 HLH 53377 b
2458	2458	HB3477 - 68 - LRB103 27010 HLH 53377 b
2459	2459	1 Public Act 92-227), personal property sold to a lessor who
2460	2460	2 leases the property, under a lease of one year or longer
2461	2461	3 executed or in effect at the time of the purchase, to a
2462	2462	4 governmental body that has been issued an active tax exemption
2463	2463	5 identification number by the Department under Section 1g of
2464	2464	6 the Retailers' Occupation Tax Act. This paragraph is exempt
2465	2465	7 from the provisions of Section 3-55.
2466	2466	8 (26) Beginning on January 1, 2002 and through June 30,
2467	2467	9 2016, tangible personal property purchased from an Illinois
2468	2468	10 retailer by a taxpayer engaged in centralized purchasing
2469	2469	11 activities in Illinois who will, upon receipt of the property
2470	2470	12 in Illinois, temporarily store the property in Illinois (i)
2471	2471	13 for the purpose of subsequently transporting it outside this
2472	2472	14 State for use or consumption thereafter solely outside this
2473	2473	15 State or (ii) for the purpose of being processed, fabricated,
2474	2474	16 or manufactured into, attached to, or incorporated into other
2475	2475	17 tangible personal property to be transported outside this
2476	2476	18 State and thereafter used or consumed solely outside this
2477	2477	19 State. The Director of Revenue shall, pursuant to rules
2478	2478	20 adopted in accordance with the Illinois Administrative
2479	2479	21 Procedure Act, issue a permit to any taxpayer in good standing
2480	2480	22 with the Department who is eligible for the exemption under
2481	2481	23 this paragraph (26). The permit issued under this paragraph
2482	2482	24 (26) shall authorize the holder, to the extent and in the
2483	2483	25 manner specified in the rules adopted under this Act, to
2484	2484	26 purchase tangible personal property from a retailer exempt
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	HB3477 - 68 - LRB103 27010 HLH 53377 b
2491	2491
2492	2492
2493	2493	HB3477- 69 -LRB103 27010 HLH 53377 b HB3477 - 69 - LRB103 27010 HLH 53377 b
2494	2494	HB3477 - 69 - LRB103 27010 HLH 53377 b
2495	2495	1 from the taxes imposed by this Act. Taxpayers shall maintain
2496	2496	2 all necessary books and records to substantiate the use and
2497	2497	3 consumption of all such tangible personal property outside of
2498	2498	4 the State of Illinois.
2499	2499	5 (27) Beginning January 1, 2008, tangible personal property
2500	2500	6 used in the construction or maintenance of a community water
2501	2501	7 supply, as defined under Section 3.145 of the Environmental
2502	2502	8 Protection Act, that is operated by a not-for-profit
2503	2503	9 corporation that holds a valid water supply permit issued
2504	2504	10 under Title IV of the Environmental Protection Act. This
2505	2505	11 paragraph is exempt from the provisions of Section 3-55.
2506	2506	12 (28) Tangible personal property sold to a
2507	2507	13 public-facilities corporation, as described in Section
2508	2508	14 11-65-10 of the Illinois Municipal Code, for purposes of
2509	2509	15 constructing or furnishing a municipal convention hall, but
2510	2510	16 only if the legal title to the municipal convention hall is
2511	2511	17 transferred to the municipality without any further
2512	2512	18 consideration by or on behalf of the municipality at the time
2513	2513	19 of the completion of the municipal convention hall or upon the
2514	2514	20 retirement or redemption of any bonds or other debt
2515	2515	21 instruments issued by the public-facilities corporation in
2516	2516	22 connection with the development of the municipal convention
2517	2517	23 hall. This exemption includes existing public-facilities
2518	2518	24 corporations as provided in Section 11-65-25 of the Illinois
2519	2519	25 Municipal Code. This paragraph is exempt from the provisions
2520	2520	26 of Section 3-55.
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	HB3477 - 69 - LRB103 27010 HLH 53377 b
2527	2527
2528	2528
2529	2529	HB3477- 70 -LRB103 27010 HLH 53377 b HB3477 - 70 - LRB103 27010 HLH 53377 b
2530	2530	HB3477 - 70 - LRB103 27010 HLH 53377 b
2531	2531	1 (29) Beginning January 1, 2010 and continuing through
2532	2532	2 December 31, 2024, materials, parts, equipment, components,
2533	2533	3 and furnishings incorporated into or upon an aircraft as part
2534	2534	4 of the modification, refurbishment, completion, replacement,
2535	2535	5 repair, or maintenance of the aircraft. This exemption
2536	2536	6 includes consumable supplies used in the modification,
2537	2537	7 refurbishment, completion, replacement, repair, and
2538	2538	8 maintenance of aircraft, but excludes any materials, parts,
2539	2539	9 equipment, components, and consumable supplies used in the
2540	2540	10 modification, replacement, repair, and maintenance of aircraft
2541	2541	11 engines or power plants, whether such engines or power plants
2542	2542	12 are installed or uninstalled upon any such aircraft.
2543	2543	13 "Consumable supplies" include, but are not limited to,
2544	2544	14 adhesive, tape, sandpaper, general purpose lubricants,
2545	2545	15 cleaning solution, latex gloves, and protective films. This
2546	2546	16 exemption applies only to the transfer of qualifying tangible
2547	2547	17 personal property incident to the modification, refurbishment,
2548	2548	18 completion, replacement, repair, or maintenance of an aircraft
2549	2549	19 by persons who (i) hold an Air Agency Certificate and are
2550	2550	20 empowered to operate an approved repair station by the Federal
2551	2551	21 Aviation Administration, (ii) have a Class IV Rating, and
2552	2552	22 (iii) conduct operations in accordance with Part 145 of the
2553	2553	23 Federal Aviation Regulations. The exemption does not include
2554	2554	24 aircraft operated by a commercial air carrier providing
2555	2555	25 scheduled passenger air service pursuant to authority issued
2556	2556	26 under Part 121 or Part 129 of the Federal Aviation
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	HB3477 - 70 - LRB103 27010 HLH 53377 b
2563	2563
2564	2564
2565	2565	HB3477- 71 -LRB103 27010 HLH 53377 b HB3477 - 71 - LRB103 27010 HLH 53377 b
2566	2566	HB3477 - 71 - LRB103 27010 HLH 53377 b
2567	2567	1 Regulations. The changes made to this paragraph (29) by Public
2568	2568	2 Act 98-534 are declarative of existing law. It is the intent of
2569	2569	3 the General Assembly that the exemption under this paragraph
2570	2570	4 (29) applies continuously from January 1, 2010 through
2571	2571	5 December 31, 2024; however, no claim for credit or refund is
2572	2572	6 allowed for taxes paid as a result of the disallowance of this
2573	2573	7 exemption on or after January 1, 2015 and prior to February 5,
2574	2574	8 2020 (the effective date of Public Act 101-629) this
2575	2575	9 amendatory Act of the 101st General Assembly.
2576	2576	10 (30) Beginning January 1, 2017 and through December 31,
2577	2577	11 2026, menstrual pads, tampons, and menstrual cups.
2578	2578	12 (31) Tangible personal property transferred to a purchaser
2579	2579	13 who is exempt from tax by operation of federal law. This
2580	2580	14 paragraph is exempt from the provisions of Section 3-55.
2581	2581	15 (32) Qualified tangible personal property used in the
2582	2582	16 construction or operation of a data center that has been
2583	2583	17 granted a certificate of exemption by the Department of
2584	2584	18 Commerce and Economic Opportunity, whether that tangible
2585	2585	19 personal property is purchased by the owner, operator, or
2586	2586	20 tenant of the data center or by a contractor or subcontractor
2587	2587	21 of the owner, operator, or tenant. Data centers that would
2588	2588	22 have qualified for a certificate of exemption prior to January
2589	2589	23 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
2590	2590	24 General Assembly been in effect, may apply for and obtain an
2591	2591	25 exemption for subsequent purchases of computer equipment or
2592	2592	26 enabling software purchased or leased to upgrade, supplement,
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	HB3477 - 71 - LRB103 27010 HLH 53377 b
2599	2599
2600	2600
2601	2601	HB3477- 72 -LRB103 27010 HLH 53377 b HB3477 - 72 - LRB103 27010 HLH 53377 b
2602	2602	HB3477 - 72 - LRB103 27010 HLH 53377 b
2603	2603	1 or replace computer equipment or enabling software purchased
2604	2604	2 or leased in the original investment that would have
2605	2605	3 qualified.
2606	2606	4 The Department of Commerce and Economic Opportunity shall
2607	2607	5 grant a certificate of exemption under this item (32) to
2608	2608	6 qualified data centers as defined by Section 605-1025 of the
2609	2609	7 Department of Commerce and Economic Opportunity Law of the
2610	2610	8 Civil Administrative Code of Illinois.
2611	2611	9 For the purposes of this item (32):
2612	2612	10 "Data center" means a building or a series of
2613	2613	11 buildings rehabilitated or constructed to house working
2614	2614	12 servers in one physical location or multiple sites within
2615	2615	13 the State of Illinois.
2616	2616	14 "Qualified tangible personal property" means:
2617	2617	15 electrical systems and equipment; climate control and
2618	2618	16 chilling equipment and systems; mechanical systems and
2619	2619	17 equipment; monitoring and secure systems; emergency
2620	2620	18 generators; hardware; computers; servers; data storage
2621	2621	19 devices; network connectivity equipment; racks; cabinets;
2622	2622	20 telecommunications cabling infrastructure; raised floor
2623	2623	21 systems; peripheral components or systems; software;
2624	2624	22 mechanical, electrical, or plumbing systems; battery
2625	2625	23 systems; cooling systems and towers; temperature control
2626	2626	24 systems; other cabling; and other data center
2627	2627	25 infrastructure equipment and systems necessary to operate
2628	2628	26 qualified tangible personal property, including fixtures;
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	HB3477 - 72 - LRB103 27010 HLH 53377 b
2635	2635
2636	2636
2637	2637	HB3477- 73 -LRB103 27010 HLH 53377 b HB3477 - 73 - LRB103 27010 HLH 53377 b
2638	2638	HB3477 - 73 - LRB103 27010 HLH 53377 b
2639	2639	1 and component parts of any of the foregoing, including
2640	2640	2 installation, maintenance, repair, refurbishment, and
2641	2641	3 replacement of qualified tangible personal property to
2642	2642	4 generate, transform, transmit, distribute, or manage
2643	2643	5 electricity necessary to operate qualified tangible
2644	2644	6 personal property; and all other tangible personal
2645	2645	7 property that is essential to the operations of a computer
2646	2646	8 data center. The term "qualified tangible personal
2647	2647	9 property" also includes building materials physically
2648	2648	10 incorporated in to the qualifying data center. To document
2649	2649	11 the exemption allowed under this Section, the retailer
2650	2650	12 must obtain from the purchaser a copy of the certificate
2651	2651	13 of eligibility issued by the Department of Commerce and
2652	2652	14 Economic Opportunity.
2653	2653	15 This item (32) is exempt from the provisions of Section
2654	2654	16 3-55.
2655	2655	17 (33) Beginning July 1, 2022, breast pumps, breast pump
2656	2656	18 collection and storage supplies, and breast pump kits. This
2657	2657	19 item (33) is exempt from the provisions of Section 3-55. As
2658	2658	20 used in this item (33):
2659	2659	21 "Breast pump" means an electrically controlled or
2660	2660	22 manually controlled pump device designed or marketed to be
2661	2661	23 used to express milk from a human breast during lactation,
2662	2662	24 including the pump device and any battery, AC adapter, or
2663	2663	25 other power supply unit that is used to power the pump
2664	2664	26 device and is packaged and sold with the pump device at the
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	HB3477 - 73 - LRB103 27010 HLH 53377 b
2671	2671
2672	2672
2673	2673	HB3477- 74 -LRB103 27010 HLH 53377 b HB3477 - 74 - LRB103 27010 HLH 53377 b
2674	2674	HB3477 - 74 - LRB103 27010 HLH 53377 b
2675	2675	1 time of sale.
2676	2676	2 "Breast pump collection and storage supplies" means
2677	2677	3 items of tangible personal property designed or marketed
2678	2678	4 to be used in conjunction with a breast pump to collect
2679	2679	5 milk expressed from a human breast and to store collected
2680	2680	6 milk until it is ready for consumption.
2681	2681	7 "Breast pump collection and storage supplies"
2682	2682	8 includes, but is not limited to: breast shields and breast
2683	2683	9 shield connectors; breast pump tubes and tubing adapters;
2684	2684	10 breast pump valves and membranes; backflow protectors and
2685	2685	11 backflow protector adaptors; bottles and bottle caps
2686	2686	12 specific to the operation of the breast pump; and breast
2687	2687	13 milk storage bags.
2688	2688	14 "Breast pump collection and storage supplies" does not
2689	2689	15 include: (1) bottles and bottle caps not specific to the
2690	2690	16 operation of the breast pump; (2) breast pump travel bags
2691	2691	17 and other similar carrying accessories, including ice
2692	2692	18 packs, labels, and other similar products; (3) breast pump
2693	2693	19 cleaning supplies; (4) nursing bras, bra pads, breast
2694	2694	20 shells, and other similar products; and (5) creams,
2695	2695	21 ointments, and other similar products that relieve
2696	2696	22 breastfeeding-related symptoms or conditions of the
2697	2697	23 breasts or nipples, unless sold as part of a breast pump
2698	2698	24 kit that is pre-packaged by the breast pump manufacturer
2699	2699	25 or distributor.
2700	2700	26 "Breast pump kit" means a kit that: (1) contains no
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705
2706	2706	HB3477 - 74 - LRB103 27010 HLH 53377 b
2707	2707
2708	2708
2709	2709	HB3477- 75 -LRB103 27010 HLH 53377 b HB3477 - 75 - LRB103 27010 HLH 53377 b
2710	2710	HB3477 - 75 - LRB103 27010 HLH 53377 b
2711	2711	1 more than a breast pump, breast pump collection and
2712	2712	2 storage supplies, a rechargeable battery for operating the
2713	2713	3 breast pump, a breastmilk cooler, bottle stands, ice
2714	2714	4 packs, and a breast pump carrying case; and (2) is
2715	2715	5 pre-packaged as a breast pump kit by the breast pump
2716	2716	6 manufacturer or distributor.
2717	2717	7 (34) (33) Tangible personal property sold by or on behalf
2718	2718	8 of the State Treasurer pursuant to the Revised Uniform
2719	2719	9 Unclaimed Property Act. This item (34) (33) is exempt from the
2720	2720	10 provisions of Section 3-55.
2721	2721	11 (35) Beginning on July 1, 2022, food prepared for
2722	2722	12 immediate consumption and transferred incident to a sale of
2723	2723	13 service subject to this Act or the Service Occupation Tax Act
2724	2724	14 by an entity licensed under the Hospital Licensing Act, the
2725	2725	15 Nursing Home Care Act, the Assisted Living and Shared Housing
2726	2726	16 Act, the ID/DD Community Care Act, the MC/DD Act, the
2727	2727	17 Specialized Mental Health Rehabilitation Act of 2013, or the
2728	2728	18 Child Care Act of 1969, or an entity that holds a permit issued
2729	2729	19 pursuant to the Life Care Facilities Act, as defined in
2730	2730	20 Section 3-10. This item (35) is exempt from the provisions of
2731	2731	21 Section 3-55.
2732	2732	22 (36) Beginning on July 1, 2022, food for human consumption
2733	2733	23 that is to be consumed off the premises where it is sold, as
2734	2734	24 defined in Section 3-10, except excluding alcoholic beverages,
2735	2735	25 food consisting of or infused with adult use cannabis, soft
2736	2736	26 drinks, and food that has been prepared for immediate
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741
2742	2742	HB3477 - 75 - LRB103 27010 HLH 53377 b
2743	2743
2744	2744
2745	2745	HB3477- 76 -LRB103 27010 HLH 53377 b HB3477 - 76 - LRB103 27010 HLH 53377 b
2746	2746	HB3477 - 76 - LRB103 27010 HLH 53377 b
2747	2747	1 consumption. This item (36) is exempt from the provisions of
2748	2748	2 Section 3-55.
2749	2749	3 (37) Beginning on July 1, 2023, the following items, as
2750	2750	4 defined in Section 3-10:
2751	2751	5 (A) prescription and nonprescription medicines, drugs,
2752	2752	6 and medical appliances;
2753	2753	7 (B) products classified as Class III medical devices
2754	2754	8 by the United States Food and Drug Administration that are
2755	2755	9 used for cancer treatment pursuant to a prescription, as
2756	2756	10 well as any accessories and components related to those
2757	2757	11 devices;
2758	2758	12 (C) modifications to a motor vehicle for the purpose
2759	2759	13 of rendering it usable by a person with a disability; and
2760	2760	14 (D) insulin, blood sugar testing materials, syringes,
2761	2761	15 and needles used by human diabetics.
2762	2762	16 This item (37) is exempt from the provisions of Section
2763	2763	17 3-55.
2764	2764	18 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
2765	2765	19 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2766	2766	20 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2767	2767	21 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
2768	2768	22 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2769	2769	23 Sec. 3-10. Rate of tax. Unless otherwise provided in this
2770	2770	24 Section, the tax imposed by this Act is at the rate of 6.25% of
2771	2771	25 the "selling price", as defined in Section 2 of the Service Use
2772	2772
2773	2773
2774	2774
2775	2775
2776	2776
2777	2777	HB3477 - 76 - LRB103 27010 HLH 53377 b
2778	2778
2779	2779
2780	2780	HB3477- 77 -LRB103 27010 HLH 53377 b HB3477 - 77 - LRB103 27010 HLH 53377 b
2781	2781	HB3477 - 77 - LRB103 27010 HLH 53377 b
2782	2782	1 Tax Act, of the tangible personal property. For the purpose of
2783	2783	2 computing this tax, in no event shall the "selling price" be
2784	2784	3 less than the cost price to the serviceman of the tangible
2785	2785	4 personal property transferred. The selling price of each item
2786	2786	5 of tangible personal property transferred as an incident of a
2787	2787	6 sale of service may be shown as a distinct and separate item on
2788	2788	7 the serviceman's billing to the service customer. If the
2789	2789	8 selling price is not so shown, the selling price of the
2790	2790	9 tangible personal property is deemed to be 50% of the
2791	2791	10 serviceman's entire billing to the service customer. When,
2792	2792	11 however, a serviceman contracts to design, develop, and
2793	2793	12 produce special order machinery or equipment, the tax imposed
2794	2794	13 by this Act shall be based on the serviceman's cost price of
2795	2795	14 the tangible personal property transferred incident to the
2796	2796	15 completion of the contract.
2797	2797	16 Beginning on July 1, 2000 and through December 31, 2000,
2798	2798	17 with respect to motor fuel, as defined in Section 1.1 of the
2799	2799	18 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2800	2800	19 the Use Tax Act, the tax is imposed at the rate of 1.25%.
2801	2801	20 With respect to gasohol, as defined in the Use Tax Act, the
2802	2802	21 tax imposed by this Act shall apply to (i) 70% of the cost
2803	2803	22 price of property transferred as an incident to the sale of
2804	2804	23 service on or after January 1, 1990, and before July 1, 2003,
2805	2805	24 (ii) 80% of the selling price of property transferred as an
2806	2806	25 incident to the sale of service on or after July 1, 2003 and on
2807	2807	26 or before July 1, 2017, and (iii) 100% of the cost price
2808	2808
2809	2809
2810	2810
2811	2811
2812	2812
2813	2813	HB3477 - 77 - LRB103 27010 HLH 53377 b
2814	2814
2815	2815
2816	2816	HB3477- 78 -LRB103 27010 HLH 53377 b HB3477 - 78 - LRB103 27010 HLH 53377 b
2817	2817	HB3477 - 78 - LRB103 27010 HLH 53377 b
2818	2818	1 thereafter. If, at any time, however, the tax under this Act on
2819	2819	2 sales of gasohol, as defined in the Use Tax Act, is imposed at
2820	2820	3 the rate of 1.25%, then the tax imposed by this Act applies to
2821	2821	4 100% of the proceeds of sales of gasohol made during that time.
2822	2822	5 With respect to majority blended ethanol fuel, as defined
2823	2823	6 in the Use Tax Act, the tax imposed by this Act does not apply
2824	2824	7 to the selling price of property transferred as an incident to
2825	2825	8 the sale of service on or after July 1, 2003 and on or before
2826	2826	9 December 31, 2023 but applies to 100% of the selling price
2827	2827	10 thereafter.
2828	2828	11 With respect to biodiesel blends, as defined in the Use
2829	2829	12 Tax Act, with no less than 1% and no more than 10% biodiesel,
2830	2830	13 the tax imposed by this Act applies to (i) 80% of the selling
2831	2831	14 price of property transferred as an incident to the sale of
2832	2832	15 service on or after July 1, 2003 and on or before December 31,
2833	2833	16 2018 and (ii) 100% of the proceeds of the selling price after
2834	2834	17 December 31, 2018 and before January 1, 2024. On and after
2835	2835	18 January 1, 2024 and on or before December 31, 2030, the
2836	2836	19 taxation of biodiesel, renewable diesel, and biodiesel blends
2837	2837	20 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2838	2838	21 at any time, however, the tax under this Act on sales of
2839	2839	22 biodiesel blends, as defined in the Use Tax Act, with no less
2840	2840	23 than 1% and no more than 10% biodiesel is imposed at the rate
2841	2841	24 of 1.25%, then the tax imposed by this Act applies to 100% of
2842	2842	25 the proceeds of sales of biodiesel blends with no less than 1%
2843	2843	26 and no more than 10% biodiesel made during that time.
2844	2844
2845	2845
2846	2846
2847	2847
2848	2848
2849	2849	HB3477 - 78 - LRB103 27010 HLH 53377 b
2850	2850
2851	2851
2852	2852	HB3477- 79 -LRB103 27010 HLH 53377 b HB3477 - 79 - LRB103 27010 HLH 53377 b
2853	2853	HB3477 - 79 - LRB103 27010 HLH 53377 b
2854	2854	1 With respect to biodiesel, as defined in the Use Tax Act,
2855	2855	2 and biodiesel blends, as defined in the Use Tax Act, with more
2856	2856	3 than 10% but no more than 99% biodiesel material, the tax
2857	2857	4 imposed by this Act does not apply to the proceeds of the
2858	2858	5 selling price of property transferred as an incident to the
2859	2859	6 sale of service on or after July 1, 2003 and on or before
2860	2860	7 December 31, 2023. On and after January 1, 2024 and on or
2861	2861	8 before December 31, 2030, the taxation of biodiesel, renewable
2862	2862	9 diesel, and biodiesel blends shall be as provided in Section
2863	2863	10 3-5.1 of the Use Tax Act.
2864	2864	11 At the election of any registered serviceman made for each
2865	2865	12 fiscal year, sales of service in which the aggregate annual
2866	2866	13 cost price of tangible personal property transferred as an
2867	2867	14 incident to the sales of service is less than 35%, or 75% in
2868	2868	15 the case of servicemen transferring prescription drugs or
2869	2869	16 servicemen engaged in graphic arts production, of the
2870	2870	17 aggregate annual total gross receipts from all sales of
2871	2871	18 service, the tax imposed by this Act shall be based on the
2872	2872	19 serviceman's cost price of the tangible personal property
2873	2873	20 transferred incident to the sale of those services.
2874	2874	21 Until July 1, 2022 and beginning again on July 1, 2023, the
2875	2875	22 tax shall be imposed at the rate of 1% on food prepared for
2876	2876	23 immediate consumption and transferred incident to a sale of
2877	2877	24 service subject to this Act or the Service Use Tax Act by an
2878	2878	25 entity licensed under the Hospital Licensing Act, the Nursing
2879	2879	26 Home Care Act, the Assisted Living and Shared Housing Act, the
2880	2880
2881	2881
2882	2882
2883	2883
2884	2884
2885	2885	HB3477 - 79 - LRB103 27010 HLH 53377 b
2886	2886
2887	2887
2888	2888	HB3477- 80 -LRB103 27010 HLH 53377 b HB3477 - 80 - LRB103 27010 HLH 53377 b
2889	2889	HB3477 - 80 - LRB103 27010 HLH 53377 b
2890	2890	1 ID/DD Community Care Act, the MC/DD Act, the Specialized
2891	2891	2 Mental Health Rehabilitation Act of 2013, or the Child Care
2892	2892	3 Act of 1969, or an entity that holds a permit issued pursuant
2893	2893	4 to the Life Care Facilities Act. Until July 1, 2022 and
2894	2894	5 beginning again on July 1, 2023, the tax shall also be imposed
2895	2895	6 at the rate of 1% on food for human consumption that is to be
2896	2896	7 consumed off the premises where it is sold (other than
2897	2897	8 alcoholic beverages, food consisting of or infused with adult
2898	2898	9 use cannabis, soft drinks, and food that has been prepared for
2899	2899	10 immediate consumption and is not otherwise included in this
2900	2900	11 paragraph).
2901	2901	12 Beginning on July 1, 2022 and until July 1, 2023, the tax
2902	2902	13 shall be imposed at the rate of 0% on food prepared for
2903	2903	14 immediate consumption and transferred incident to a sale of
2904	2904	15 service subject to this Act or the Service Use Tax Act by an
2905	2905	16 entity licensed under the Hospital Licensing Act, the Nursing
2906	2906	17 Home Care Act, the Assisted Living and Shared Housing Act, the
2907	2907	18 ID/DD Community Care Act, the MC/DD Act, the Specialized
2908	2908	19 Mental Health Rehabilitation Act of 2013, or the Child Care
2909	2909	20 Act of 1969, or an entity that holds a permit issued pursuant
2910	2910	21 to the Life Care Facilities Act. Beginning July 1, 2022 and
2911	2911	22 until July 1, 2023, the tax shall also be imposed at the rate
2912	2912	23 of 0% on food for human consumption that is to be consumed off
2913	2913	24 the premises where it is sold (other than alcoholic beverages,
2914	2914	25 food consisting of or infused with adult use cannabis, soft
2915	2915	26 drinks, and food that has been prepared for immediate
2916	2916
2917	2917
2918	2918
2919	2919
2920	2920
2921	2921	HB3477 - 80 - LRB103 27010 HLH 53377 b
2922	2922
2923	2923
2924	2924	HB3477- 81 -LRB103 27010 HLH 53377 b HB3477 - 81 - LRB103 27010 HLH 53377 b
2925	2925	HB3477 - 81 - LRB103 27010 HLH 53377 b
2926	2926	1 consumption and is not otherwise included in this paragraph).
2927	2927	2 Until July 1, 2023, the The tax shall also be imposed at
2928	2928	3 the rate of 1% on prescription and nonprescription medicines,
2929	2929	4 drugs, medical appliances, products classified as Class III
2930	2930	5 medical devices by the United States Food and Drug
2931	2931	6 Administration that are used for cancer treatment pursuant to
2932	2932	7 a prescription, as well as any accessories and components
2933	2933	8 related to those devices, modifications to a motor vehicle for
2934	2934	9 the purpose of rendering it usable by a person with a
2935	2935	10 disability, and insulin, blood sugar testing materials,
2936	2936	11 syringes, and needles used by human diabetics. For the
2937	2937	12 purposes of this Section, until September 1, 2009: the term
2938	2938	13 "soft drinks" means any complete, finished, ready-to-use,
2939	2939	14 non-alcoholic drink, whether carbonated or not, including, but
2940	2940	15 not limited to, soda water, cola, fruit juice, vegetable
2941	2941	16 juice, carbonated water, and all other preparations commonly
2942	2942	17 known as soft drinks of whatever kind or description that are
2943	2943	18 contained in any closed or sealed can, carton, or container,
2944	2944	19 regardless of size; but "soft drinks" does not include coffee,
2945	2945	20 tea, non-carbonated water, infant formula, milk or milk
2946	2946	21 products as defined in the Grade A Pasteurized Milk and Milk
2947	2947	22 Products Act, or drinks containing 50% or more natural fruit
2948	2948	23 or vegetable juice.
2949	2949	24 Notwithstanding any other provisions of this Act,
2950	2950	25 beginning September 1, 2009, "soft drinks" means non-alcoholic
2951	2951	26 beverages that contain natural or artificial sweeteners. "Soft
2952	2952
2953	2953
2954	2954
2955	2955
2956	2956
2957	2957	HB3477 - 81 - LRB103 27010 HLH 53377 b
2958	2958
2959	2959
2960	2960	HB3477- 82 -LRB103 27010 HLH 53377 b HB3477 - 82 - LRB103 27010 HLH 53377 b
2961	2961	HB3477 - 82 - LRB103 27010 HLH 53377 b
2962	2962	1 drinks" does do not include beverages that contain milk or
2963	2963	2 milk products, soy, rice or similar milk substitutes, or
2964	2964	3 greater than 50% of vegetable or fruit juice by volume.
2965	2965	4 Until August 1, 2009, and notwithstanding any other
2966	2966	5 provisions of this Act, "food for human consumption that is to
2967	2967	6 be consumed off the premises where it is sold" includes all
2968	2968	7 food sold through a vending machine, except soft drinks and
2969	2969	8 food products that are dispensed hot from a vending machine,
2970	2970	9 regardless of the location of the vending machine. Beginning
2971	2971	10 August 1, 2009, and notwithstanding any other provisions of
2972	2972	11 this Act, "food for human consumption that is to be consumed
2973	2973	12 off the premises where it is sold" includes all food sold
2974	2974	13 through a vending machine, except soft drinks, candy, and food
2975	2975	14 products that are dispensed hot from a vending machine,
2976	2976	15 regardless of the location of the vending machine.
2977	2977	16 Notwithstanding any other provisions of this Act,
2978	2978	17 beginning September 1, 2009, "food for human consumption that
2979	2979	18 is to be consumed off the premises where it is sold" does not
2980	2980	19 include candy. For purposes of this Section, "candy" means a
2981	2981	20 preparation of sugar, honey, or other natural or artificial
2982	2982	21 sweeteners in combination with chocolate, fruits, nuts or
2983	2983	22 other ingredients or flavorings in the form of bars, drops, or
2984	2984	23 pieces. "Candy" does not include any preparation that contains
2985	2985	24 flour or requires refrigeration.
2986	2986	25 Notwithstanding any other provisions of this Act,
2987	2987	26 beginning September 1, 2009, "nonprescription medicines and
2988	2988
2989	2989
2990	2990
2991	2991
2992	2992
2993	2993	HB3477 - 82 - LRB103 27010 HLH 53377 b
2994	2994
2995	2995
2996	2996	HB3477- 83 -LRB103 27010 HLH 53377 b HB3477 - 83 - LRB103 27010 HLH 53377 b
2997	2997	HB3477 - 83 - LRB103 27010 HLH 53377 b
2998	2998	1 drugs" does not include grooming and hygiene products. For
2999	2999	2 purposes of this Section, "grooming and hygiene products"
3000	3000	3 includes, but is not limited to, soaps and cleaning solutions,
3001	3001	4 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3002	3002	5 lotions and screens, unless those products are available by
3003	3003	6 prescription only, regardless of whether the products meet the
3004	3004	7 definition of "over-the-counter-drugs". For the purposes of
3005	3005	8 this paragraph, "over-the-counter-drug" means a drug for human
3006	3006	9 use that contains a label that identifies the product as a drug
3007	3007	10 as required by 21 CFR C.F.R. 201.66. The
3008	3008	11 "over-the-counter-drug" label includes:
3009	3009	12 (A) a A "Drug Facts" panel; or
3010	3010	13 (B) a A statement of the "active ingredient(s)" with a
3011	3011	14 list of those ingredients contained in the compound,
3012	3012	15 substance or preparation.
3013	3013	16 Beginning on January 1, 2014 (the effective date of Public
3014	3014	17 Act 98-122), "prescription and nonprescription medicines and
3015	3015	18 drugs" includes medical cannabis purchased from a registered
3016	3016	19 dispensing organization under the Compassionate Use of Medical
3017	3017	20 Cannabis Program Act.
3018	3018	21 As used in this Section, "adult use cannabis" means
3019	3019	22 cannabis subject to tax under the Cannabis Cultivation
3020	3020	23 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3021	3021	24 and does not include cannabis subject to tax under the
3022	3022	25 Compassionate Use of Medical Cannabis Program Act.
3023	3023	26 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
3024	3024
3025	3025
3026	3026
3027	3027
3028	3028
3029	3029	HB3477 - 83 - LRB103 27010 HLH 53377 b
3030	3030
3031	3031
3032	3032	HB3477- 84 -LRB103 27010 HLH 53377 b HB3477 - 84 - LRB103 27010 HLH 53377 b
3033	3033	HB3477 - 84 - LRB103 27010 HLH 53377 b
3034	3034	1 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
3035	3035	2 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
3036	3036	3 60-25, eff. 4-19-22; revised 6-1-22.)
3037	3037	4 Section 20. The Retailers' Occupation Tax Act is amended
3038	3038	5 by changing Sections 2-5 and 2-10 as follows:
3039	3039	6 (35 ILCS 120/2-5)
3040	3040	7 Sec. 2-5. Exemptions. Gross receipts from proceeds from
3041	3041	8 the sale of the following tangible personal property are
3042	3042	9 exempt from the tax imposed by this Act:
3043	3043	10 (1) Farm chemicals.
3044	3044	11 (2) Farm machinery and equipment, both new and used,
3045	3045	12 including that manufactured on special order, certified by
3046	3046	13 the purchaser to be used primarily for production
3047	3047	14 agriculture or State or federal agricultural programs,
3048	3048	15 including individual replacement parts for the machinery
3049	3049	16 and equipment, including machinery and equipment purchased
3050	3050	17 for lease, and including implements of husbandry defined
3051	3051	18 in Section 1-130 of the Illinois Vehicle Code, farm
3052	3052	19 machinery and agricultural chemical and fertilizer
3053	3053	20 spreaders, and nurse wagons required to be registered
3054	3054	21 under Section 3-809 of the Illinois Vehicle Code, but
3055	3055	22 excluding other motor vehicles required to be registered
3056	3056	23 under the Illinois Vehicle Code. Horticultural polyhouses
3057	3057	24 or hoop houses used for propagating, growing, or
3058	3058
3059	3059
3060	3060
3061	3061
3062	3062
3063	3063	HB3477 - 84 - LRB103 27010 HLH 53377 b
3064	3064
3065	3065
3066	3066	HB3477- 85 -LRB103 27010 HLH 53377 b HB3477 - 85 - LRB103 27010 HLH 53377 b
3067	3067	HB3477 - 85 - LRB103 27010 HLH 53377 b
3068	3068	1 overwintering plants shall be considered farm machinery
3069	3069	2 and equipment under this item (2). Agricultural chemical
3070	3070	3 tender tanks and dry boxes shall include units sold
3071	3071	4 separately from a motor vehicle required to be licensed
3072	3072	5 and units sold mounted on a motor vehicle required to be
3073	3073	6 licensed, if the selling price of the tender is separately
3074	3074	7 stated.
3075	3075	8 Farm machinery and equipment shall include precision
3076	3076	9 farming equipment that is installed or purchased to be
3077	3077	10 installed on farm machinery and equipment including, but
3078	3078	11 not limited to, tractors, harvesters, sprayers, planters,
3079	3079	12 seeders, or spreaders. Precision farming equipment
3080	3080	13 includes, but is not limited to, soil testing sensors,
3081	3081	14 computers, monitors, software, global positioning and
3082	3082	15 mapping systems, and other such equipment.
3083	3083	16 Farm machinery and equipment also includes computers,
3084	3084	17 sensors, software, and related equipment used primarily in
3085	3085	18 the computer-assisted operation of production agriculture
3086	3086	19 facilities, equipment, and activities such as, but not
3087	3087	20 limited to, the collection, monitoring, and correlation of
3088	3088	21 animal and crop data for the purpose of formulating animal
3089	3089	22 diets and agricultural chemicals. This item (2) is exempt
3090	3090	23 from the provisions of Section 2-70.
3091	3091	24 (3) Until July 1, 2003, distillation machinery and
3092	3092	25 equipment, sold as a unit or kit, assembled or installed
3093	3093	26 by the retailer, certified by the user to be used only for
3094	3094
3095	3095
3096	3096
3097	3097
3098	3098
3099	3099	HB3477 - 85 - LRB103 27010 HLH 53377 b
3100	3100
3101	3101
3102	3102	HB3477- 86 -LRB103 27010 HLH 53377 b HB3477 - 86 - LRB103 27010 HLH 53377 b
3103	3103	HB3477 - 86 - LRB103 27010 HLH 53377 b
3104	3104	1 the production of ethyl alcohol that will be used for
3105	3105	2 consumption as motor fuel or as a component of motor fuel
3106	3106	3 for the personal use of the user, and not subject to sale
3107	3107	4 or resale.
3108	3108	5 (4) Until July 1, 2003 and beginning again September
3109	3109	6 1, 2004 through August 30, 2014, graphic arts machinery
3110	3110	7 and equipment, including repair and replacement parts,
3111	3111	8 both new and used, and including that manufactured on
3112	3112	9 special order or purchased for lease, certified by the
3113	3113	10 purchaser to be used primarily for graphic arts
3114	3114	11 production. Equipment includes chemicals or chemicals
3115	3115	12 acting as catalysts but only if the chemicals or chemicals
3116	3116	13 acting as catalysts effect a direct and immediate change
3117	3117	14 upon a graphic arts product. Beginning on July 1, 2017,
3118	3118	15 graphic arts machinery and equipment is included in the
3119	3119	16 manufacturing and assembling machinery and equipment
3120	3120	17 exemption under paragraph (14).
3121	3121	18 (5) A motor vehicle that is used for automobile
3122	3122	19 renting, as defined in the Automobile Renting Occupation
3123	3123	20 and Use Tax Act. This paragraph is exempt from the
3124	3124	21 provisions of Section 2-70.
3125	3125	22 (6) Personal property sold by a teacher-sponsored
3126	3126	23 student organization affiliated with an elementary or
3127	3127	24 secondary school located in Illinois.
3128	3128	25 (7) Until July 1, 2003, proceeds of that portion of
3129	3129	26 the selling price of a passenger car the sale of which is
3130	3130
3131	3131
3132	3132
3133	3133
3134	3134
3135	3135	HB3477 - 86 - LRB103 27010 HLH 53377 b
3136	3136
3137	3137
3138	3138	HB3477- 87 -LRB103 27010 HLH 53377 b HB3477 - 87 - LRB103 27010 HLH 53377 b
3139	3139	HB3477 - 87 - LRB103 27010 HLH 53377 b
3140	3140	1 subject to the Replacement Vehicle Tax.
3141	3141	2 (8) Personal property sold to an Illinois county fair
3142	3142	3 association for use in conducting, operating, or promoting
3143	3143	4 the county fair.
3144	3144	5 (9) Personal property sold to a not-for-profit arts or
3145	3145	6 cultural organization that establishes, by proof required
3146	3146	7 by the Department by rule, that it has received an
3147	3147	8 exemption under Section 501(c)(3) of the Internal Revenue
3148	3148	9 Code and that is organized and operated primarily for the
3149	3149	10 presentation or support of arts or cultural programming,
3150	3150	11 activities, or services. These organizations include, but
3151	3151	12 are not limited to, music and dramatic arts organizations
3152	3152	13 such as symphony orchestras and theatrical groups, arts
3153	3153	14 and cultural service organizations, local arts councils,
3154	3154	15 visual arts organizations, and media arts organizations.
3155	3155	16 On and after July 1, 2001 (the effective date of Public Act
3156	3156	17 92-35), however, an entity otherwise eligible for this
3157	3157	18 exemption shall not make tax-free purchases unless it has
3158	3158	19 an active identification number issued by the Department.
3159	3159	20 (10) Personal property sold by a corporation, society,
3160	3160	21 association, foundation, institution, or organization,
3161	3161	22 other than a limited liability company, that is organized
3162	3162	23 and operated as a not-for-profit service enterprise for
3163	3163	24 the benefit of persons 65 years of age or older if the
3164	3164	25 personal property was not purchased by the enterprise for
3165	3165	26 the purpose of resale by the enterprise.
3166	3166
3167	3167
3168	3168
3169	3169
3170	3170
3171	3171	HB3477 - 87 - LRB103 27010 HLH 53377 b
3172	3172
3173	3173
3174	3174	HB3477- 88 -LRB103 27010 HLH 53377 b HB3477 - 88 - LRB103 27010 HLH 53377 b
3175	3175	HB3477 - 88 - LRB103 27010 HLH 53377 b
3176	3176	1 (11) Personal property sold to a governmental body, to
3177	3177	2 a corporation, society, association, foundation, or
3178	3178	3 institution organized and operated exclusively for
3179	3179	4 charitable, religious, or educational purposes, or to a
3180	3180	5 not-for-profit corporation, society, association,
3181	3181	6 foundation, institution, or organization that has no
3182	3182	7 compensated officers or employees and that is organized
3183	3183	8 and operated primarily for the recreation of persons 55
3184	3184	9 years of age or older. A limited liability company may
3185	3185	10 qualify for the exemption under this paragraph only if the
3186	3186	11 limited liability company is organized and operated
3187	3187	12 exclusively for educational purposes. On and after July 1,
3188	3188	13 1987, however, no entity otherwise eligible for this
3189	3189	14 exemption shall make tax-free purchases unless it has an
3190	3190	15 active identification number issued by the Department.
3191	3191	16 (12) (Blank).
3192	3192	17 (12-5) On and after July 1, 2003 and through June 30,
3193	3193	18 2004, motor vehicles of the second division with a gross
3194	3194	19 vehicle weight in excess of 8,000 pounds that are subject
3195	3195	20 to the commercial distribution fee imposed under Section
3196	3196	21 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3197	3197	22 2004 and through June 30, 2005, the use in this State of
3198	3198	23 motor vehicles of the second division: (i) with a gross
3199	3199	24 vehicle weight rating in excess of 8,000 pounds; (ii) that
3200	3200	25 are subject to the commercial distribution fee imposed
3201	3201	26 under Section 3-815.1 of the Illinois Vehicle Code; and
3202	3202
3203	3203
3204	3204
3205	3205
3206	3206
3207	3207	HB3477 - 88 - LRB103 27010 HLH 53377 b
3208	3208
3209	3209
3210	3210	HB3477- 89 -LRB103 27010 HLH 53377 b HB3477 - 89 - LRB103 27010 HLH 53377 b
3211	3211	HB3477 - 89 - LRB103 27010 HLH 53377 b
3212	3212	1 (iii) that are primarily used for commercial purposes.
3213	3213	2 Through June 30, 2005, this exemption applies to repair
3214	3214	3 and replacement parts added after the initial purchase of
3215	3215	4 such a motor vehicle if that motor vehicle is used in a
3216	3216	5 manner that would qualify for the rolling stock exemption
3217	3217	6 otherwise provided for in this Act. For purposes of this
3218	3218	7 paragraph, "used for commercial purposes" means the
3219	3219	8 transportation of persons or property in furtherance of
3220	3220	9 any commercial or industrial enterprise whether for-hire
3221	3221	10 or not.
3222	3222	11 (13) Proceeds from sales to owners, lessors, or
3223	3223	12 shippers of tangible personal property that is utilized by
3224	3224	13 interstate carriers for hire for use as rolling stock
3225	3225	14 moving in interstate commerce and equipment operated by a
3226	3226	15 telecommunications provider, licensed as a common carrier
3227	3227	16 by the Federal Communications Commission, which is
3228	3228	17 permanently installed in or affixed to aircraft moving in
3229	3229	18 interstate commerce.
3230	3230	19 (14) Machinery and equipment that will be used by the
3231	3231	20 purchaser, or a lessee of the purchaser, primarily in the
3232	3232	21 process of manufacturing or assembling tangible personal
3233	3233	22 property for wholesale or retail sale or lease, whether
3234	3234	23 the sale or lease is made directly by the manufacturer or
3235	3235	24 by some other person, whether the materials used in the
3236	3236	25 process are owned by the manufacturer or some other
3237	3237	26 person, or whether the sale or lease is made apart from or
3238	3238
3239	3239
3240	3240
3241	3241
3242	3242
3243	3243	HB3477 - 89 - LRB103 27010 HLH 53377 b
3244	3244
3245	3245
3246	3246	HB3477- 90 -LRB103 27010 HLH 53377 b HB3477 - 90 - LRB103 27010 HLH 53377 b
3247	3247	HB3477 - 90 - LRB103 27010 HLH 53377 b
3248	3248	1 as an incident to the seller's engaging in the service
3249	3249	2 occupation of producing machines, tools, dies, jigs,
3250	3250	3 patterns, gauges, or other similar items of no commercial
3251	3251	4 value on special order for a particular purchaser. The
3252	3252	5 exemption provided by this paragraph (14) does not include
3253	3253	6 machinery and equipment used in (i) the generation of
3254	3254	7 electricity for wholesale or retail sale; (ii) the
3255	3255	8 generation or treatment of natural or artificial gas for
3256	3256	9 wholesale or retail sale that is delivered to customers
3257	3257	10 through pipes, pipelines, or mains; or (iii) the treatment
3258	3258	11 of water for wholesale or retail sale that is delivered to
3259	3259	12 customers through pipes, pipelines, or mains. The
3260	3260	13 provisions of Public Act 98-583 are declaratory of
3261	3261	14 existing law as to the meaning and scope of this
3262	3262	15 exemption. Beginning on July 1, 2017, the exemption
3263	3263	16 provided by this paragraph (14) includes, but is not
3264	3264	17 limited to, graphic arts machinery and equipment, as
3265	3265	18 defined in paragraph (4) of this Section.
3266	3266	19 (15) Proceeds of mandatory service charges separately
3267	3267	20 stated on customers' bills for purchase and consumption of
3268	3268	21 food and beverages, to the extent that the proceeds of the
3269	3269	22 service charge are in fact turned over as tips or as a
3270	3270	23 substitute for tips to the employees who participate
3271	3271	24 directly in preparing, serving, hosting or cleaning up the
3272	3272	25 food or beverage function with respect to which the
3273	3273	26 service charge is imposed.
3274	3274
3275	3275
3276	3276
3277	3277
3278	3278
3279	3279	HB3477 - 90 - LRB103 27010 HLH 53377 b
3280	3280
3281	3281
3282	3282	HB3477- 91 -LRB103 27010 HLH 53377 b HB3477 - 91 - LRB103 27010 HLH 53377 b
3283	3283	HB3477 - 91 - LRB103 27010 HLH 53377 b
3284	3284	1 (16) Tangible personal property sold to a purchaser if
3285	3285	2 the purchaser is exempt from use tax by operation of
3286	3286	3 federal law. This paragraph is exempt from the provisions
3287	3287	4 of Section 2-70.
3288	3288	5 (17) Tangible personal property sold to a common
3289	3289	6 carrier by rail or motor that receives the physical
3290	3290	7 possession of the property in Illinois and that transports
3291	3291	8 the property, or shares with another common carrier in the
3292	3292	9 transportation of the property, out of Illinois on a
3293	3293	10 standard uniform bill of lading showing the seller of the
3294	3294	11 property as the shipper or consignor of the property to a
3295	3295	12 destination outside Illinois, for use outside Illinois.
3296	3296	13 (18) Legal tender, currency, medallions, or gold or
3297	3297	14 silver coinage issued by the State of Illinois, the
3298	3298	15 government of the United States of America, or the
3299	3299	16 government of any foreign country, and bullion.
3300	3300	17 (19) Until July 1, 2003, oil field exploration,
3301	3301	18 drilling, and production equipment, including (i) rigs and
3302	3302	19 parts of rigs, rotary rigs, cable tool rigs, and workover
3303	3303	20 rigs, (ii) pipe and tubular goods, including casing and
3304	3304	21 drill strings, (iii) pumps and pump-jack units, (iv)
3305	3305	22 storage tanks and flow lines, (v) any individual
3306	3306	23 replacement part for oil field exploration, drilling, and
3307	3307	24 production equipment, and (vi) machinery and equipment
3308	3308	25 purchased for lease; but excluding motor vehicles required
3309	3309	26 to be registered under the Illinois Vehicle Code.
3310	3310
3311	3311
3312	3312
3313	3313
3314	3314
3315	3315	HB3477 - 91 - LRB103 27010 HLH 53377 b
3316	3316
3317	3317
3318	3318	HB3477- 92 -LRB103 27010 HLH 53377 b HB3477 - 92 - LRB103 27010 HLH 53377 b
3319	3319	HB3477 - 92 - LRB103 27010 HLH 53377 b
3320	3320	1 (20) Photoprocessing machinery and equipment,
3321	3321	2 including repair and replacement parts, both new and used,
3322	3322	3 including that manufactured on special order, certified by
3323	3323	4 the purchaser to be used primarily for photoprocessing,
3324	3324	5 and including photoprocessing machinery and equipment
3325	3325	6 purchased for lease.
3326	3326	7 (21) Until July 1, 2028, coal and aggregate
3327	3327	8 exploration, mining, off-highway hauling, processing,
3328	3328	9 maintenance, and reclamation equipment, including
3329	3329	10 replacement parts and equipment, and including equipment
3330	3330	11 purchased for lease, but excluding motor vehicles required
3331	3331	12 to be registered under the Illinois Vehicle Code. The
3332	3332	13 changes made to this Section by Public Act 97-767 apply on
3333	3333	14 and after July 1, 2003, but no claim for credit or refund
3334	3334	15 is allowed on or after August 16, 2013 (the effective date
3335	3335	16 of Public Act 98-456) for such taxes paid during the
3336	3336	17 period beginning July 1, 2003 and ending on August 16,
3337	3337	18 2013 (the effective date of Public Act 98-456).
3338	3338	19 (22) Until June 30, 2013, fuel and petroleum products
3339	3339	20 sold to or used by an air carrier, certified by the carrier
3340	3340	21 to be used for consumption, shipment, or storage in the
3341	3341	22 conduct of its business as an air common carrier, for a
3342	3342	23 flight destined for or returning from a location or
3343	3343	24 locations outside the United States without regard to
3344	3344	25 previous or subsequent domestic stopovers.
3345	3345	26 Beginning July 1, 2013, fuel and petroleum products
3346	3346
3347	3347
3348	3348
3349	3349
3350	3350
3351	3351	HB3477 - 92 - LRB103 27010 HLH 53377 b
3352	3352
3353	3353
3354	3354	HB3477- 93 -LRB103 27010 HLH 53377 b HB3477 - 93 - LRB103 27010 HLH 53377 b
3355	3355	HB3477 - 93 - LRB103 27010 HLH 53377 b
3356	3356	1 sold to or used by an air carrier, certified by the carrier
3357	3357	2 to be used for consumption, shipment, or storage in the
3358	3358	3 conduct of its business as an air common carrier, for a
3359	3359	4 flight that (i) is engaged in foreign trade or is engaged
3360	3360	5 in trade between the United States and any of its
3361	3361	6 possessions and (ii) transports at least one individual or
3362	3362	7 package for hire from the city of origination to the city
3363	3363	8 of final destination on the same aircraft, without regard
3364	3364	9 to a change in the flight number of that aircraft.
3365	3365	10 (23) A transaction in which the purchase order is
3366	3366	11 received by a florist who is located outside Illinois, but
3367	3367	12 who has a florist located in Illinois deliver the property
3368	3368	13 to the purchaser or the purchaser's donee in Illinois.
3369	3369	14 (24) Fuel consumed or used in the operation of ships,
3370	3370	15 barges, or vessels that are used primarily in or for the
3371	3371	16 transportation of property or the conveyance of persons
3372	3372	17 for hire on rivers bordering on this State if the fuel is
3373	3373	18 delivered by the seller to the purchaser's barge, ship, or
3374	3374	19 vessel while it is afloat upon that bordering river.
3375	3375	20 (25) Except as provided in item (25-5) of this
3376	3376	21 Section, a motor vehicle sold in this State to a
3377	3377	22 nonresident even though the motor vehicle is delivered to
3378	3378	23 the nonresident in this State, if the motor vehicle is not
3379	3379	24 to be titled in this State, and if a drive-away permit is
3380	3380	25 issued to the motor vehicle as provided in Section 3-603
3381	3381	26 of the Illinois Vehicle Code or if the nonresident
3382	3382
3383	3383
3384	3384
3385	3385
3386	3386
3387	3387	HB3477 - 93 - LRB103 27010 HLH 53377 b
3388	3388
3389	3389
3390	3390	HB3477- 94 -LRB103 27010 HLH 53377 b HB3477 - 94 - LRB103 27010 HLH 53377 b
3391	3391	HB3477 - 94 - LRB103 27010 HLH 53377 b
3392	3392	1 purchaser has vehicle registration plates to transfer to
3393	3393	2 the motor vehicle upon returning to his or her home state.
3394	3394	3 The issuance of the drive-away permit or having the
3395	3395	4 out-of-state registration plates to be transferred is
3396	3396	5 prima facie evidence that the motor vehicle will not be
3397	3397	6 titled in this State.
3398	3398	7 (25-5) The exemption under item (25) does not apply if
3399	3399	8 the state in which the motor vehicle will be titled does
3400	3400	9 not allow a reciprocal exemption for a motor vehicle sold
3401	3401	10 and delivered in that state to an Illinois resident but
3402	3402	11 titled in Illinois. The tax collected under this Act on
3403	3403	12 the sale of a motor vehicle in this State to a resident of
3404	3404	13 another state that does not allow a reciprocal exemption
3405	3405	14 shall be imposed at a rate equal to the state's rate of tax
3406	3406	15 on taxable property in the state in which the purchaser is
3407	3407	16 a resident, except that the tax shall not exceed the tax
3408	3408	17 that would otherwise be imposed under this Act. At the
3409	3409	18 time of the sale, the purchaser shall execute a statement,
3410	3410	19 signed under penalty of perjury, of his or her intent to
3411	3411	20 title the vehicle in the state in which the purchaser is a
3412	3412	21 resident within 30 days after the sale and of the fact of
3413	3413	22 the payment to the State of Illinois of tax in an amount
3414	3414	23 equivalent to the state's rate of tax on taxable property
3415	3415	24 in his or her state of residence and shall submit the
3416	3416	25 statement to the appropriate tax collection agency in his
3417	3417	26 or her state of residence. In addition, the retailer must
3418	3418
3419	3419
3420	3420
3421	3421
3422	3422
3423	3423	HB3477 - 94 - LRB103 27010 HLH 53377 b
3424	3424
3425	3425
3426	3426	HB3477- 95 -LRB103 27010 HLH 53377 b HB3477 - 95 - LRB103 27010 HLH 53377 b
3427	3427	HB3477 - 95 - LRB103 27010 HLH 53377 b
3428	3428	1 retain a signed copy of the statement in his or her
3429	3429	2 records. Nothing in this item shall be construed to
3430	3430	3 require the removal of the vehicle from this state
3431	3431	4 following the filing of an intent to title the vehicle in
3432	3432	5 the purchaser's state of residence if the purchaser titles
3433	3433	6 the vehicle in his or her state of residence within 30 days
3434	3434	7 after the date of sale. The tax collected under this Act in
3435	3435	8 accordance with this item (25-5) shall be proportionately
3436	3436	9 distributed as if the tax were collected at the 6.25%
3437	3437	10 general rate imposed under this Act.
3438	3438	11 (25-7) Beginning on July 1, 2007, no tax is imposed
3439	3439	12 under this Act on the sale of an aircraft, as defined in
3440	3440	13 Section 3 of the Illinois Aeronautics Act, if all of the
3441	3441	14 following conditions are met:
3442	3442	15 (1) the aircraft leaves this State within 15 days
3443	3443	16 after the later of either the issuance of the final
3444	3444	17 billing for the sale of the aircraft, or the
3445	3445	18 authorized approval for return to service, completion
3446	3446	19 of the maintenance record entry, and completion of the
3447	3447	20 test flight and ground test for inspection, as
3448	3448	21 required by 14 CFR C.F.R. 91.407;
3449	3449	22 (2) the aircraft is not based or registered in
3450	3450	23 this State after the sale of the aircraft; and
3451	3451	24 (3) the seller retains in his or her books and
3452	3452	25 records and provides to the Department a signed and
3453	3453	26 dated certification from the purchaser, on a form
3454	3454
3455	3455
3456	3456
3457	3457
3458	3458
3459	3459	HB3477 - 95 - LRB103 27010 HLH 53377 b
3460	3460
3461	3461
3462	3462	HB3477- 96 -LRB103 27010 HLH 53377 b HB3477 - 96 - LRB103 27010 HLH 53377 b
3463	3463	HB3477 - 96 - LRB103 27010 HLH 53377 b
3464	3464	1 prescribed by the Department, certifying that the
3465	3465	2 requirements of this item (25-7) are met. The
3466	3466	3 certificate must also include the name and address of
3467	3467	4 the purchaser, the address of the location where the
3468	3468	5 aircraft is to be titled or registered, the address of
3469	3469	6 the primary physical location of the aircraft, and
3470	3470	7 other information that the Department may reasonably
3471	3471	8 require.
3472	3472	9 For purposes of this item (25-7):
3473	3473	10 "Based in this State" means hangared, stored, or
3474	3474	11 otherwise used, excluding post-sale customizations as
3475	3475	12 defined in this Section, for 10 or more days in each
3476	3476	13 12-month period immediately following the date of the sale
3477	3477	14 of the aircraft.
3478	3478	15 "Registered in this State" means an aircraft
3479	3479	16 registered with the Department of Transportation,
3480	3480	17 Aeronautics Division, or titled or registered with the
3481	3481	18 Federal Aviation Administration to an address located in
3482	3482	19 this State.
3483	3483	20 This paragraph (25-7) is exempt from the provisions of
3484	3484	21 Section 2-70.
3485	3485	22 (26) Semen used for artificial insemination of
3486	3486	23 livestock for direct agricultural production.
3487	3487	24 (27) Horses, or interests in horses, registered with
3488	3488	25 and meeting the requirements of any of the Arabian Horse
3489	3489	26 Club Registry of America, Appaloosa Horse Club, American
3490	3490
3491	3491
3492	3492
3493	3493
3494	3494
3495	3495	HB3477 - 96 - LRB103 27010 HLH 53377 b
3496	3496
3497	3497
3498	3498	HB3477- 97 -LRB103 27010 HLH 53377 b HB3477 - 97 - LRB103 27010 HLH 53377 b
3499	3499	HB3477 - 97 - LRB103 27010 HLH 53377 b
3500	3500	1 Quarter Horse Association, United States Trotting
3501	3501	2 Association, or Jockey Club, as appropriate, used for
3502	3502	3 purposes of breeding or racing for prizes. This item (27)
3503	3503	4 is exempt from the provisions of Section 2-70, and the
3504	3504	5 exemption provided for under this item (27) applies for
3505	3505	6 all periods beginning May 30, 1995, but no claim for
3506	3506	7 credit or refund is allowed on or after January 1, 2008
3507	3507	8 (the effective date of Public Act 95-88) for such taxes
3508	3508	9 paid during the period beginning May 30, 2000 and ending
3509	3509	10 on January 1, 2008 (the effective date of Public Act
3510	3510	11 95-88).
3511	3511	12 (28) Computers and communications equipment utilized
3512	3512	13 for any hospital purpose and equipment used in the
3513	3513	14 diagnosis, analysis, or treatment of hospital patients
3514	3514	15 sold to a lessor who leases the equipment, under a lease of
3515	3515	16 one year or longer executed or in effect at the time of the
3516	3516	17 purchase, to a hospital that has been issued an active tax
3517	3517	18 exemption identification number by the Department under
3518	3518	19 Section 1g of this Act.
3519	3519	20 (29) Personal property sold to a lessor who leases the
3520	3520	21 property, under a lease of one year or longer executed or
3521	3521	22 in effect at the time of the purchase, to a governmental
3522	3522	23 body that has been issued an active tax exemption
3523	3523	24 identification number by the Department under Section 1g
3524	3524	25 of this Act.
3525	3525	26 (30) Beginning with taxable years ending on or after
3526	3526
3527	3527
3528	3528
3529	3529
3530	3530
3531	3531	HB3477 - 97 - LRB103 27010 HLH 53377 b
3532	3532
3533	3533
3534	3534	HB3477- 98 -LRB103 27010 HLH 53377 b HB3477 - 98 - LRB103 27010 HLH 53377 b
3535	3535	HB3477 - 98 - LRB103 27010 HLH 53377 b
3536	3536	1 December 31, 1995 and ending with taxable years ending on
3537	3537	2 or before December 31, 2004, personal property that is
3538	3538	3 donated for disaster relief to be used in a State or
3539	3539	4 federally declared disaster area in Illinois or bordering
3540	3540	5 Illinois by a manufacturer or retailer that is registered
3541	3541	6 in this State to a corporation, society, association,
3542	3542	7 foundation, or institution that has been issued a sales
3543	3543	8 tax exemption identification number by the Department that
3544	3544	9 assists victims of the disaster who reside within the
3545	3545	10 declared disaster area.
3546	3546	11 (31) Beginning with taxable years ending on or after
3547	3547	12 December 31, 1995 and ending with taxable years ending on
3548	3548	13 or before December 31, 2004, personal property that is
3549	3549	14 used in the performance of infrastructure repairs in this
3550	3550	15 State, including but not limited to municipal roads and
3551	3551	16 streets, access roads, bridges, sidewalks, waste disposal
3552	3552	17 systems, water and sewer line extensions, water
3553	3553	18 distribution and purification facilities, storm water
3554	3554	19 drainage and retention facilities, and sewage treatment
3555	3555	20 facilities, resulting from a State or federally declared
3556	3556	21 disaster in Illinois or bordering Illinois when such
3557	3557	22 repairs are initiated on facilities located in the
3558	3558	23 declared disaster area within 6 months after the disaster.
3559	3559	24 (32) Beginning July 1, 1999, game or game birds sold
3560	3560	25 at a "game breeding and hunting preserve area" as that
3561	3561	26 term is used in the Wildlife Code. This paragraph is
3562	3562
3563	3563
3564	3564
3565	3565
3566	3566
3567	3567	HB3477 - 98 - LRB103 27010 HLH 53377 b
3568	3568
3569	3569
3570	3570	HB3477- 99 -LRB103 27010 HLH 53377 b HB3477 - 99 - LRB103 27010 HLH 53377 b
3571	3571	HB3477 - 99 - LRB103 27010 HLH 53377 b
3572	3572	1 exempt from the provisions of Section 2-70.
3573	3573	2 (33) A motor vehicle, as that term is defined in
3574	3574	3 Section 1-146 of the Illinois Vehicle Code, that is
3575	3575	4 donated to a corporation, limited liability company,
3576	3576	5 society, association, foundation, or institution that is
3577	3577	6 determined by the Department to be organized and operated
3578	3578	7 exclusively for educational purposes. For purposes of this
3579	3579	8 exemption, "a corporation, limited liability company,
3580	3580	9 society, association, foundation, or institution organized
3581	3581	10 and operated exclusively for educational purposes" means
3582	3582	11 all tax-supported public schools, private schools that
3583	3583	12 offer systematic instruction in useful branches of
3584	3584	13 learning by methods common to public schools and that
3585	3585	14 compare favorably in their scope and intensity with the
3586	3586	15 course of study presented in tax-supported schools, and
3587	3587	16 vocational or technical schools or institutes organized
3588	3588	17 and operated exclusively to provide a course of study of
3589	3589	18 not less than 6 weeks duration and designed to prepare
3590	3590	19 individuals to follow a trade or to pursue a manual,
3591	3591	20 technical, mechanical, industrial, business, or commercial
3592	3592	21 occupation.
3593	3593	22 (34) Beginning January 1, 2000, personal property,
3594	3594	23 including food, purchased through fundraising events for
3595	3595	24 the benefit of a public or private elementary or secondary
3596	3596	25 school, a group of those schools, or one or more school
3597	3597	26 districts if the events are sponsored by an entity
3598	3598
3599	3599
3600	3600
3601	3601
3602	3602
3603	3603	HB3477 - 99 - LRB103 27010 HLH 53377 b
3604	3604
3605	3605
3606	3606	HB3477- 100 -LRB103 27010 HLH 53377 b HB3477 - 100 - LRB103 27010 HLH 53377 b
3607	3607	HB3477 - 100 - LRB103 27010 HLH 53377 b
3608	3608	1 recognized by the school district that consists primarily
3609	3609	2 of volunteers and includes parents and teachers of the
3610	3610	3 school children. This paragraph does not apply to
3611	3611	4 fundraising events (i) for the benefit of private home
3612	3612	5 instruction or (ii) for which the fundraising entity
3613	3613	6 purchases the personal property sold at the events from
3614	3614	7 another individual or entity that sold the property for
3615	3615	8 the purpose of resale by the fundraising entity and that
3616	3616	9 profits from the sale to the fundraising entity. This
3617	3617	10 paragraph is exempt from the provisions of Section 2-70.
3618	3618	11 (35) Beginning January 1, 2000 and through December
3619	3619	12 31, 2001, new or used automatic vending machines that
3620	3620	13 prepare and serve hot food and beverages, including
3621	3621	14 coffee, soup, and other items, and replacement parts for
3622	3622	15 these machines. Beginning January 1, 2002 and through June
3623	3623	16 30, 2003, machines and parts for machines used in
3624	3624	17 commercial, coin-operated amusement and vending business
3625	3625	18 if a use or occupation tax is paid on the gross receipts
3626	3626	19 derived from the use of the commercial, coin-operated
3627	3627	20 amusement and vending machines. This paragraph is exempt
3628	3628	21 from the provisions of Section 2-70.
3629	3629	22 (35-5) Beginning August 23, 2001 and through June 30,
3630	3630	23 2016, food for human consumption that is to be consumed
3631	3631	24 off the premises where it is sold (other than alcoholic
3632	3632	25 beverages, soft drinks, and food that has been prepared
3633	3633	26 for immediate consumption) and prescription and
3634	3634
3635	3635
3636	3636
3637	3637
3638	3638
3639	3639	HB3477 - 100 - LRB103 27010 HLH 53377 b
3640	3640
3641	3641
3642	3642	HB3477- 101 -LRB103 27010 HLH 53377 b HB3477 - 101 - LRB103 27010 HLH 53377 b
3643	3643	HB3477 - 101 - LRB103 27010 HLH 53377 b
3644	3644	1 nonprescription medicines, drugs, medical appliances, and
3645	3645	2 insulin, urine testing materials, syringes, and needles
3646	3646	3 used by diabetics, for human use, when purchased for use
3647	3647	4 by a person receiving medical assistance under Article V
3648	3648	5 of the Illinois Public Aid Code who resides in a licensed
3649	3649	6 long-term care facility, as defined in the Nursing Home
3650	3650	7 Care Act, or a licensed facility as defined in the ID/DD
3651	3651	8 Community Care Act, the MC/DD Act, or the Specialized
3652	3652	9 Mental Health Rehabilitation Act of 2013.
3653	3653	10 (36) Beginning August 2, 2001, computers and
3654	3654	11 communications equipment utilized for any hospital purpose
3655	3655	12 and equipment used in the diagnosis, analysis, or
3656	3656	13 treatment of hospital patients sold to a lessor who leases
3657	3657	14 the equipment, under a lease of one year or longer
3658	3658	15 executed or in effect at the time of the purchase, to a
3659	3659	16 hospital that has been issued an active tax exemption
3660	3660	17 identification number by the Department under Section 1g
3661	3661	18 of this Act. This paragraph is exempt from the provisions
3662	3662	19 of Section 2-70.
3663	3663	20 (37) Beginning August 2, 2001, personal property sold
3664	3664	21 to a lessor who leases the property, under a lease of one
3665	3665	22 year or longer executed or in effect at the time of the
3666	3666	23 purchase, to a governmental body that has been issued an
3667	3667	24 active tax exemption identification number by the
3668	3668	25 Department under Section 1g of this Act. This paragraph is
3669	3669	26 exempt from the provisions of Section 2-70.
3670	3670
3671	3671
3672	3672
3673	3673
3674	3674
3675	3675	HB3477 - 101 - LRB103 27010 HLH 53377 b
3676	3676
3677	3677
3678	3678	HB3477- 102 -LRB103 27010 HLH 53377 b HB3477 - 102 - LRB103 27010 HLH 53377 b
3679	3679	HB3477 - 102 - LRB103 27010 HLH 53377 b
3680	3680	1 (38) Beginning on January 1, 2002 and through June 30,
3681	3681	2 2016, tangible personal property purchased from an
3682	3682	3 Illinois retailer by a taxpayer engaged in centralized
3683	3683	4 purchasing activities in Illinois who will, upon receipt
3684	3684	5 of the property in Illinois, temporarily store the
3685	3685	6 property in Illinois (i) for the purpose of subsequently
3686	3686	7 transporting it outside this State for use or consumption
3687	3687	8 thereafter solely outside this State or (ii) for the
3688	3688	9 purpose of being processed, fabricated, or manufactured
3689	3689	10 into, attached to, or incorporated into other tangible
3690	3690	11 personal property to be transported outside this State and
3691	3691	12 thereafter used or consumed solely outside this State. The
3692	3692	13 Director of Revenue shall, pursuant to rules adopted in
3693	3693	14 accordance with the Illinois Administrative Procedure Act,
3694	3694	15 issue a permit to any taxpayer in good standing with the
3695	3695	16 Department who is eligible for the exemption under this
3696	3696	17 paragraph (38). The permit issued under this paragraph
3697	3697	18 (38) shall authorize the holder, to the extent and in the
3698	3698	19 manner specified in the rules adopted under this Act, to
3699	3699	20 purchase tangible personal property from a retailer exempt
3700	3700	21 from the taxes imposed by this Act. Taxpayers shall
3701	3701	22 maintain all necessary books and records to substantiate
3702	3702	23 the use and consumption of all such tangible personal
3703	3703	24 property outside of the State of Illinois.
3704	3704	25 (39) Beginning January 1, 2008, tangible personal
3705	3705	26 property used in the construction or maintenance of a
3706	3706
3707	3707
3708	3708
3709	3709
3710	3710
3711	3711	HB3477 - 102 - LRB103 27010 HLH 53377 b
3712	3712
3713	3713
3714	3714	HB3477- 103 -LRB103 27010 HLH 53377 b HB3477 - 103 - LRB103 27010 HLH 53377 b
3715	3715	HB3477 - 103 - LRB103 27010 HLH 53377 b
3716	3716	1 community water supply, as defined under Section 3.145 of
3717	3717	2 the Environmental Protection Act, that is operated by a
3718	3718	3 not-for-profit corporation that holds a valid water supply
3719	3719	4 permit issued under Title IV of the Environmental
3720	3720	5 Protection Act. This paragraph is exempt from the
3721	3721	6 provisions of Section 2-70.
3722	3722	7 (40) Beginning January 1, 2010 and continuing through
3723	3723	8 December 31, 2024, materials, parts, equipment,
3724	3724	9 components, and furnishings incorporated into or upon an
3725	3725	10 aircraft as part of the modification, refurbishment,
3726	3726	11 completion, replacement, repair, or maintenance of the
3727	3727	12 aircraft. This exemption includes consumable supplies used
3728	3728	13 in the modification, refurbishment, completion,
3729	3729	14 replacement, repair, and maintenance of aircraft, but
3730	3730	15 excludes any materials, parts, equipment, components, and
3731	3731	16 consumable supplies used in the modification, replacement,
3732	3732	17 repair, and maintenance of aircraft engines or power
3733	3733	18 plants, whether such engines or power plants are installed
3734	3734	19 or uninstalled upon any such aircraft. "Consumable
3735	3735	20 supplies" include, but are not limited to, adhesive, tape,
3736	3736	21 sandpaper, general purpose lubricants, cleaning solution,
3737	3737	22 latex gloves, and protective films. This exemption applies
3738	3738	23 only to the sale of qualifying tangible personal property
3739	3739	24 to persons who modify, refurbish, complete, replace, or
3740	3740	25 maintain an aircraft and who (i) hold an Air Agency
3741	3741	26 Certificate and are empowered to operate an approved
3742	3742
3743	3743
3744	3744
3745	3745
3746	3746
3747	3747	HB3477 - 103 - LRB103 27010 HLH 53377 b
3748	3748
3749	3749
3750	3750	HB3477- 104 -LRB103 27010 HLH 53377 b HB3477 - 104 - LRB103 27010 HLH 53377 b
3751	3751	HB3477 - 104 - LRB103 27010 HLH 53377 b
3752	3752	1 repair station by the Federal Aviation Administration,
3753	3753	2 (ii) have a Class IV Rating, and (iii) conduct operations
3754	3754	3 in accordance with Part 145 of the Federal Aviation
3755	3755	4 Regulations. The exemption does not include aircraft
3756	3756	5 operated by a commercial air carrier providing scheduled
3757	3757	6 passenger air service pursuant to authority issued under
3758	3758	7 Part 121 or Part 129 of the Federal Aviation Regulations.
3759	3759	8 The changes made to this paragraph (40) by Public Act
3760	3760	9 98-534 are declarative of existing law. It is the intent
3761	3761	10 of the General Assembly that the exemption under this
3762	3762	11 paragraph (40) applies continuously from January 1, 2010
3763	3763	12 through December 31, 2024; however, no claim for credit or
3764	3764	13 refund is allowed for taxes paid as a result of the
3765	3765	14 disallowance of this exemption on or after January 1, 2015
3766	3766	15 and prior to February 5, 2020 (the effective date of
3767	3767	16 Public Act 101-629) this amendatory Act of the 101st
3768	3768	17 General Assembly.
3769	3769	18 (41) Tangible personal property sold to a
3770	3770	19 public-facilities corporation, as described in Section
3771	3771	20 11-65-10 of the Illinois Municipal Code, for purposes of
3772	3772	21 constructing or furnishing a municipal convention hall,
3773	3773	22 but only if the legal title to the municipal convention
3774	3774	23 hall is transferred to the municipality without any
3775	3775	24 further consideration by or on behalf of the municipality
3776	3776	25 at the time of the completion of the municipal convention
3777	3777	26 hall or upon the retirement or redemption of any bonds or
3778	3778
3779	3779
3780	3780
3781	3781
3782	3782
3783	3783	HB3477 - 104 - LRB103 27010 HLH 53377 b
3784	3784
3785	3785
3786	3786	HB3477- 105 -LRB103 27010 HLH 53377 b HB3477 - 105 - LRB103 27010 HLH 53377 b
3787	3787	HB3477 - 105 - LRB103 27010 HLH 53377 b
3788	3788	1 other debt instruments issued by the public-facilities
3789	3789	2 corporation in connection with the development of the
3790	3790	3 municipal convention hall. This exemption includes
3791	3791	4 existing public-facilities corporations as provided in
3792	3792	5 Section 11-65-25 of the Illinois Municipal Code. This
3793	3793	6 paragraph is exempt from the provisions of Section 2-70.
3794	3794	7 (42) Beginning January 1, 2017 and through December
3795	3795	8 31, 2026, menstrual pads, tampons, and menstrual cups.
3796	3796	9 (43) Merchandise that is subject to the Rental
3797	3797	10 Purchase Agreement Occupation and Use Tax. The purchaser
3798	3798	11 must certify that the item is purchased to be rented
3799	3799	12 subject to a rental purchase agreement, as defined in the
3800	3800	13 Rental Purchase Agreement Act, and provide proof of
3801	3801	14 registration under the Rental Purchase Agreement
3802	3802	15 Occupation and Use Tax Act. This paragraph is exempt from
3803	3803	16 the provisions of Section 2-70.
3804	3804	17 (44) Qualified tangible personal property used in the
3805	3805	18 construction or operation of a data center that has been
3806	3806	19 granted a certificate of exemption by the Department of
3807	3807	20 Commerce and Economic Opportunity, whether that tangible
3808	3808	21 personal property is purchased by the owner, operator, or
3809	3809	22 tenant of the data center or by a contractor or
3810	3810	23 subcontractor of the owner, operator, or tenant. Data
3811	3811	24 centers that would have qualified for a certificate of
3812	3812	25 exemption prior to January 1, 2020 had Public Act 101-31
3813	3813	26 this amendatory Act of the 101st General Assembly been in
3814	3814
3815	3815
3816	3816
3817	3817
3818	3818
3819	3819	HB3477 - 105 - LRB103 27010 HLH 53377 b
3820	3820
3821	3821
3822	3822	HB3477- 106 -LRB103 27010 HLH 53377 b HB3477 - 106 - LRB103 27010 HLH 53377 b
3823	3823	HB3477 - 106 - LRB103 27010 HLH 53377 b
3824	3824	1 effect, may apply for and obtain an exemption for
3825	3825	2 subsequent purchases of computer equipment or enabling
3826	3826	3 software purchased or leased to upgrade, supplement, or
3827	3827	4 replace computer equipment or enabling software purchased
3828	3828	5 or leased in the original investment that would have
3829	3829	6 qualified.
3830	3830	7 The Department of Commerce and Economic Opportunity
3831	3831	8 shall grant a certificate of exemption under this item
3832	3832	9 (44) to qualified data centers as defined by Section
3833	3833	10 605-1025 of the Department of Commerce and Economic
3834	3834	11 Opportunity Law of the Civil Administrative Code of
3835	3835	12 Illinois.
3836	3836	13 For the purposes of this item (44):
3837	3837	14 "Data center" means a building or a series of
3838	3838	15 buildings rehabilitated or constructed to house
3839	3839	16 working servers in one physical location or multiple
3840	3840	17 sites within the State of Illinois.
3841	3841	18 "Qualified tangible personal property" means:
3842	3842	19 electrical systems and equipment; climate control and
3843	3843	20 chilling equipment and systems; mechanical systems and
3844	3844	21 equipment; monitoring and secure systems; emergency
3845	3845	22 generators; hardware; computers; servers; data storage
3846	3846	23 devices; network connectivity equipment; racks;
3847	3847	24 cabinets; telecommunications cabling infrastructure;
3848	3848	25 raised floor systems; peripheral components or
3849	3849	26 systems; software; mechanical, electrical, or plumbing
3850	3850
3851	3851
3852	3852
3853	3853
3854	3854
3855	3855	HB3477 - 106 - LRB103 27010 HLH 53377 b
3856	3856
3857	3857
3858	3858	HB3477- 107 -LRB103 27010 HLH 53377 b HB3477 - 107 - LRB103 27010 HLH 53377 b
3859	3859	HB3477 - 107 - LRB103 27010 HLH 53377 b
3860	3860	1 systems; battery systems; cooling systems and towers;
3861	3861	2 temperature control systems; other cabling; and other
3862	3862	3 data center infrastructure equipment and systems
3863	3863	4 necessary to operate qualified tangible personal
3864	3864	5 property, including fixtures; and component parts of
3865	3865	6 any of the foregoing, including installation,
3866	3866	7 maintenance, repair, refurbishment, and replacement of
3867	3867	8 qualified tangible personal property to generate,
3868	3868	9 transform, transmit, distribute, or manage electricity
3869	3869	10 necessary to operate qualified tangible personal
3870	3870	11 property; and all other tangible personal property
3871	3871	12 that is essential to the operations of a computer data
3872	3872	13 center. The term "qualified tangible personal
3873	3873	14 property" also includes building materials physically
3874	3874	15 incorporated into the qualifying data center. To
3875	3875	16 document the exemption allowed under this Section, the
3876	3876	17 retailer must obtain from the purchaser a copy of the
3877	3877	18 certificate of eligibility issued by the Department of
3878	3878	19 Commerce and Economic Opportunity.
3879	3879	20 This item (44) is exempt from the provisions of
3880	3880	21 Section 2-70.
3881	3881	22 (45) Beginning January 1, 2020 and through December
3882	3882	23 31, 2020, sales of tangible personal property made by a
3883	3883	24 marketplace seller over a marketplace for which tax is due
3884	3884	25 under this Act but for which use tax has been collected and
3885	3885	26 remitted to the Department by a marketplace facilitator
3886	3886
3887	3887
3888	3888
3889	3889
3890	3890
3891	3891	HB3477 - 107 - LRB103 27010 HLH 53377 b
3892	3892
3893	3893
3894	3894	HB3477- 108 -LRB103 27010 HLH 53377 b HB3477 - 108 - LRB103 27010 HLH 53377 b
3895	3895	HB3477 - 108 - LRB103 27010 HLH 53377 b
3896	3896	1 under Section 2d of the Use Tax Act are exempt from tax
3897	3897	2 under this Act. A marketplace seller claiming this
3898	3898	3 exemption shall maintain books and records demonstrating
3899	3899	4 that the use tax on such sales has been collected and
3900	3900	5 remitted by a marketplace facilitator. Marketplace sellers
3901	3901	6 that have properly remitted tax under this Act on such
3902	3902	7 sales may file a claim for credit as provided in Section 6
3903	3903	8 of this Act. No claim is allowed, however, for such taxes
3904	3904	9 for which a credit or refund has been issued to the
3905	3905	10 marketplace facilitator under the Use Tax Act, or for
3906	3906	11 which the marketplace facilitator has filed a claim for
3907	3907	12 credit or refund under the Use Tax Act.
3908	3908	13 (46) Beginning July 1, 2022, breast pumps, breast pump
3909	3909	14 collection and storage supplies, and breast pump kits.
3910	3910	15 This item (46) is exempt from the provisions of Section
3911	3911	16 2-70. As used in this item (46):
3912	3912	17 "Breast pump" means an electrically controlled or
3913	3913	18 manually controlled pump device designed or marketed to be
3914	3914	19 used to express milk from a human breast during lactation,
3915	3915	20 including the pump device and any battery, AC adapter, or
3916	3916	21 other power supply unit that is used to power the pump
3917	3917	22 device and is packaged and sold with the pump device at the
3918	3918	23 time of sale.
3919	3919	24 "Breast pump collection and storage supplies" means
3920	3920	25 items of tangible personal property designed or marketed
3921	3921	26 to be used in conjunction with a breast pump to collect
3922	3922
3923	3923
3924	3924
3925	3925
3926	3926
3927	3927	HB3477 - 108 - LRB103 27010 HLH 53377 b
3928	3928
3929	3929
3930	3930	HB3477- 109 -LRB103 27010 HLH 53377 b HB3477 - 109 - LRB103 27010 HLH 53377 b
3931	3931	HB3477 - 109 - LRB103 27010 HLH 53377 b
3932	3932	1 milk expressed from a human breast and to store collected
3933	3933	2 milk until it is ready for consumption.
3934	3934	3 "Breast pump collection and storage supplies"
3935	3935	4 includes, but is not limited to: breast shields and breast
3936	3936	5 shield connectors; breast pump tubes and tubing adapters;
3937	3937	6 breast pump valves and membranes; backflow protectors and
3938	3938	7 backflow protector adaptors; bottles and bottle caps
3939	3939	8 specific to the operation of the breast pump; and breast
3940	3940	9 milk storage bags.
3941	3941	10 "Breast pump collection and storage supplies" does not
3942	3942	11 include: (1) bottles and bottle caps not specific to the
3943	3943	12 operation of the breast pump; (2) breast pump travel bags
3944	3944	13 and other similar carrying accessories, including ice
3945	3945	14 packs, labels, and other similar products; (3) breast pump
3946	3946	15 cleaning supplies; (4) nursing bras, bra pads, breast
3947	3947	16 shells, and other similar products; and (5) creams,
3948	3948	17 ointments, and other similar products that relieve
3949	3949	18 breastfeeding-related symptoms or conditions of the
3950	3950	19 breasts or nipples, unless sold as part of a breast pump
3951	3951	20 kit that is pre-packaged by the breast pump manufacturer
3952	3952	21 or distributor.
3953	3953	22 "Breast pump kit" means a kit that: (1) contains no
3954	3954	23 more than a breast pump, breast pump collection and
3955	3955	24 storage supplies, a rechargeable battery for operating the
3956	3956	25 breast pump, a breastmilk cooler, bottle stands, ice
3957	3957	26 packs, and a breast pump carrying case; and (2) is
3958	3958
3959	3959
3960	3960
3961	3961
3962	3962
3963	3963	HB3477 - 109 - LRB103 27010 HLH 53377 b
3964	3964
3965	3965
3966	3966	HB3477- 110 -LRB103 27010 HLH 53377 b HB3477 - 110 - LRB103 27010 HLH 53377 b
3967	3967	HB3477 - 110 - LRB103 27010 HLH 53377 b
3968	3968	1 pre-packaged as a breast pump kit by the breast pump
3969	3969	2 manufacturer or distributor.
3970	3970	3 (47) (46) Tangible personal property sold by or on
3971	3971	4 behalf of the State Treasurer pursuant to the Revised
3972	3972	5 Uniform Unclaimed Property Act. This item (47) (46) is
3973	3973	6 exempt from the provisions of Section 2-70.
3974	3974	7 (48) Beginning on July 1, 2022, food for human consumption
3975	3975	8 that is to be consumed off the premises where it is sold, as
3976	3976	9 defined in Section 2-10, except excluding alcoholic beverages,
3977	3977	10 food consisting of or infused with adult use cannabis, soft
3978	3978	11 drinks, and food that has been prepared for immediate
3979	3979	12 consumption. This item (48) is exempt from the provisions of
3980	3980	13 Section 2-70.
3981	3981	14 (49) Beginning on July 1, 2023, the following items, as
3982	3982	15 defined in Section 2-10:
3983	3983	16 (A) prescription and nonprescription medicines, drugs,
3984	3984	17 and medical appliances;
3985	3985	18 (B) products classified as Class III medical devices
3986	3986	19 by the United States Food and Drug Administration that are
3987	3987	20 used for cancer treatment pursuant to a prescription, as
3988	3988	21 well as any accessories and components related to those
3989	3989	22 devices;
3990	3990	23 (C) modifications to a motor vehicle for the purpose
3991	3991	24 of rendering it usable by a person with a disability; and
3992	3992	25 (D) insulin, blood sugar testing materials, syringes,
3993	3993	26 and needles used by human diabetics.
3994	3994
3995	3995
3996	3996
3997	3997
3998	3998
3999	3999	HB3477 - 110 - LRB103 27010 HLH 53377 b
4000	4000
4001	4001
4002	4002	HB3477- 111 -LRB103 27010 HLH 53377 b HB3477 - 111 - LRB103 27010 HLH 53377 b
4003	4003	HB3477 - 111 - LRB103 27010 HLH 53377 b
4004	4004	1 This item (49) is exempt from the provisions of Section
4005	4005	2 2-70.
4006	4006	3 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4007	4007	4 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
4008	4008	5 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
4009	4009	6 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
4010	4010	7 eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
4011	4011	8 (35 ILCS 120/2-10)
4012	4012	9 Sec. 2-10. Rate of tax. Unless otherwise provided in this
4013	4013	10 Section, the tax imposed by this Act is at the rate of 6.25% of
4014	4014	11 gross receipts from sales of tangible personal property made
4015	4015	12 in the course of business.
4016	4016	13 Beginning on July 1, 2000 and through December 31, 2000,
4017	4017	14 with respect to motor fuel, as defined in Section 1.1 of the
4018	4018	15 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4019	4019	16 the Use Tax Act, the tax is imposed at the rate of 1.25%.
4020	4020	17 Beginning on August 6, 2010 through August 15, 2010, and
4021	4021	18 beginning again on August 5, 2022 through August 14, 2022,
4022	4022	19 with respect to sales tax holiday items as defined in Section
4023	4023	20 2-8 of this Act, the tax is imposed at the rate of 1.25%.
4024	4024	21 Within 14 days after July 1, 2000 (the effective date of
4025	4025	22 Public Act 91-872) this amendatory Act of the 91st General
4026	4026	23 Assembly, each retailer of motor fuel and gasohol shall cause
4027	4027	24 the following notice to be posted in a prominently visible
4028	4028	25 place on each retail dispensing device that is used to
4029	4029
4030	4030
4031	4031
4032	4032
4033	4033
4034	4034	HB3477 - 111 - LRB103 27010 HLH 53377 b
4035	4035
4036	4036
4037	4037	HB3477- 112 -LRB103 27010 HLH 53377 b HB3477 - 112 - LRB103 27010 HLH 53377 b
4038	4038	HB3477 - 112 - LRB103 27010 HLH 53377 b
4039	4039	1 dispense motor fuel or gasohol in the State of Illinois: "As of
4040	4040	2 July 1, 2000, the State of Illinois has eliminated the State's
4041	4041	3 share of sales tax on motor fuel and gasohol through December
4042	4042	4 31, 2000. The price on this pump should reflect the
4043	4043	5 elimination of the tax." The notice shall be printed in bold
4044	4044	6 print on a sign that is no smaller than 4 inches by 8 inches.
4045	4045	7 The sign shall be clearly visible to customers. Any retailer
4046	4046	8 who fails to post or maintain a required sign through December
4047	4047	9 31, 2000 is guilty of a petty offense for which the fine shall
4048	4048	10 be $500 per day per each retail premises where a violation
4049	4049	11 occurs.
4050	4050	12 With respect to gasohol, as defined in the Use Tax Act, the
4051	4051	13 tax imposed by this Act applies to (i) 70% of the proceeds of
4052	4052	14 sales made on or after January 1, 1990, and before July 1,
4053	4053	15 2003, (ii) 80% of the proceeds of sales made on or after July
4054	4054	16 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
4055	4055	17 proceeds of sales made thereafter. If, at any time, however,
4056	4056	18 the tax under this Act on sales of gasohol, as defined in the
4057	4057	19 Use Tax Act, is imposed at the rate of 1.25%, then the tax
4058	4058	20 imposed by this Act applies to 100% of the proceeds of sales of
4059	4059	21 gasohol made during that time.
4060	4060	22 With respect to majority blended ethanol fuel, as defined
4061	4061	23 in the Use Tax Act, the tax imposed by this Act does not apply
4062	4062	24 to the proceeds of sales made on or after July 1, 2003 and on
4063	4063	25 or before December 31, 2023 but applies to 100% of the proceeds
4064	4064	26 of sales made thereafter.
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4075	4075	1 With respect to biodiesel blends, as defined in the Use
4076	4076	2 Tax Act, with no less than 1% and no more than 10% biodiesel,
4077	4077	3 the tax imposed by this Act applies to (i) 80% of the proceeds
4078	4078	4 of sales made on or after July 1, 2003 and on or before
4079	4079	5 December 31, 2018 and (ii) 100% of the proceeds of sales made
4080	4080	6 after December 31, 2018 and before January 1, 2024. On and
4081	4081	7 after January 1, 2024 and on or before December 31, 2030, the
4082	4082	8 taxation of biodiesel, renewable diesel, and biodiesel blends
4083	4083	9 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4084	4084	10 at any time, however, the tax under this Act on sales of
4085	4085	11 biodiesel blends, as defined in the Use Tax Act, with no less
4086	4086	12 than 1% and no more than 10% biodiesel is imposed at the rate
4087	4087	13 of 1.25%, then the tax imposed by this Act applies to 100% of
4088	4088	14 the proceeds of sales of biodiesel blends with no less than 1%
4089	4089	15 and no more than 10% biodiesel made during that time.
4090	4090	16 With respect to biodiesel, as defined in the Use Tax Act,
4091	4091	17 and biodiesel blends, as defined in the Use Tax Act, with more
4092	4092	18 than 10% but no more than 99% biodiesel, the tax imposed by
4093	4093	19 this Act does not apply to the proceeds of sales made on or
4094	4094	20 after July 1, 2003 and on or before December 31, 2023. On and
4095	4095	21 after January 1, 2024 and on or before December 31, 2030, the
4096	4096	22 taxation of biodiesel, renewable diesel, and biodiesel blends
4097	4097	23 shall be as provided in Section 3-5.1 of the Use Tax Act.
4098	4098	24 Until July 1, 2022 and beginning again on July 1, 2023,
4099	4099	25 with respect to food for human consumption that is to be
4100	4100	26 consumed off the premises where it is sold (other than
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4111	4111	1 alcoholic beverages, food consisting of or infused with adult
4112	4112	2 use cannabis, soft drinks, and food that has been prepared for
4113	4113	3 immediate consumption), the tax is imposed at the rate of 1%.
4114	4114	4 Beginning July 1, 2022 and until July 1, 2023, with respect to
4115	4115	5 food for human consumption that is to be consumed off the
4116	4116	6 premises where it is sold (other than alcoholic beverages,
4117	4117	7 food consisting of or infused with adult use cannabis, soft
4118	4118	8 drinks, and food that has been prepared for immediate
4119	4119	9 consumption), the tax is imposed at the rate of 0%.
4120	4120	10 Until July 1, 2023, with With respect to prescription and
4121	4121	11 nonprescription medicines, drugs, medical appliances, products
4122	4122	12 classified as Class III medical devices by the United States
4123	4123	13 Food and Drug Administration that are used for cancer
4124	4124	14 treatment pursuant to a prescription, as well as any
4125	4125	15 accessories and components related to those devices,
4126	4126	16 modifications to a motor vehicle for the purpose of rendering
4127	4127	17 it usable by a person with a disability, and insulin, blood
4128	4128	18 sugar testing materials, syringes, and needles used by human
4129	4129	19 diabetics, the tax is imposed at the rate of 1%. For the
4130	4130	20 purposes of this Section, until September 1, 2009: the term
4131	4131	21 "soft drinks" means any complete, finished, ready-to-use,
4132	4132	22 non-alcoholic drink, whether carbonated or not, including, but
4133	4133	23 not limited to, soda water, cola, fruit juice, vegetable
4134	4134	24 juice, carbonated water, and all other preparations commonly
4135	4135	25 known as soft drinks of whatever kind or description that are
4136	4136	26 contained in any closed or sealed bottle, can, carton, or
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4147	4147	1 container, regardless of size; but "soft drinks" does not
4148	4148	2 include coffee, tea, non-carbonated water, infant formula,
4149	4149	3 milk or milk products as defined in the Grade A Pasteurized
4150	4150	4 Milk and Milk Products Act, or drinks containing 50% or more
4151	4151	5 natural fruit or vegetable juice.
4152	4152	6 Notwithstanding any other provisions of this Act,
4153	4153	7 beginning September 1, 2009, "soft drinks" means non-alcoholic
4154	4154	8 beverages that contain natural or artificial sweeteners. "Soft
4155	4155	9 drinks" does do not include beverages that contain milk or
4156	4156	10 milk products, soy, rice or similar milk substitutes, or
4157	4157	11 greater than 50% of vegetable or fruit juice by volume.
4158	4158	12 Until August 1, 2009, and notwithstanding any other
4159	4159	13 provisions of this Act, "food for human consumption that is to
4160	4160	14 be consumed off the premises where it is sold" includes all
4161	4161	15 food sold through a vending machine, except soft drinks and
4162	4162	16 food products that are dispensed hot from a vending machine,
4163	4163	17 regardless of the location of the vending machine. Beginning
4164	4164	18 August 1, 2009, and notwithstanding any other provisions of
4165	4165	19 this Act, "food for human consumption that is to be consumed
4166	4166	20 off the premises where it is sold" includes all food sold
4167	4167	21 through a vending machine, except soft drinks, candy, and food
4168	4168	22 products that are dispensed hot from a vending machine,
4169	4169	23 regardless of the location of the vending machine.
4170	4170	24 Notwithstanding any other provisions of this Act,
4171	4171	25 beginning September 1, 2009, "food for human consumption that
4172	4172	26 is to be consumed off the premises where it is sold" does not
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4183	4183	1 include candy. For purposes of this Section, "candy" means a
4184	4184	2 preparation of sugar, honey, or other natural or artificial
4185	4185	3 sweeteners in combination with chocolate, fruits, nuts or
4186	4186	4 other ingredients or flavorings in the form of bars, drops, or
4187	4187	5 pieces. "Candy" does not include any preparation that contains
4188	4188	6 flour or requires refrigeration.
4189	4189	7 Notwithstanding any other provisions of this Act,
4190	4190	8 beginning September 1, 2009, "nonprescription medicines and
4191	4191	9 drugs" does not include grooming and hygiene products. For
4192	4192	10 purposes of this Section, "grooming and hygiene products"
4193	4193	11 includes, but is not limited to, soaps and cleaning solutions,
4194	4194	12 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4195	4195	13 lotions and screens, unless those products are available by
4196	4196	14 prescription only, regardless of whether the products meet the
4197	4197	15 definition of "over-the-counter-drugs". For the purposes of
4198	4198	16 this paragraph, "over-the-counter-drug" means a drug for human
4199	4199	17 use that contains a label that identifies the product as a drug
4200	4200	18 as required by 21 CFR C.F.R. 201.66. The
4201	4201	19 "over-the-counter-drug" label includes:
4202	4202	20 (A) a A "Drug Facts" panel; or
4203	4203	21 (B) a A statement of the "active ingredient(s)" with a
4204	4204	22 list of those ingredients contained in the compound,
4205	4205	23 substance or preparation.
4206	4206	24 Beginning on January 1, 2014 (the effective date of Public
4207	4207	25 Act 98-122) this amendatory Act of the 98th General Assembly,
4208	4208	26 "prescription and nonprescription medicines and drugs"
4209	4209
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4219	4219	1 includes medical cannabis purchased from a registered
4220	4220	2 dispensing organization under the Compassionate Use of Medical
4221	4221	3 Cannabis Program Act.
4222	4222	4 As used in this Section, "adult use cannabis" means
4223	4223	5 cannabis subject to tax under the Cannabis Cultivation
4224	4224	6 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4225	4225	7 and does not include cannabis subject to tax under the
4226	4226	8 Compassionate Use of Medical Cannabis Program Act.
4227	4227	9 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
4228	4228	10 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
4229	4229	11 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
4230	4230	12 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
4231	4231	13 6-1-22.)
4232	4232	14 Section 99. Effective date. This Act takes effect upon
4233	4233	15 becoming law.
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