Illinois House Bill HB3477 Latest Draft

                            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
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
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
    LRB103 27010 HLH 53377 b
A BILL FOR
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1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Sections
5  3-5 and 3-10 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use of the following tangible
8  personal property is exempt from the tax imposed by this Act:
9  (1) Personal property purchased from a corporation,
10  society, association, foundation, institution, or
11  organization, other than a limited liability company, that is
12  organized and operated as a not-for-profit service enterprise
13  for the benefit of persons 65 years of age or older if the
14  personal property was not purchased by the enterprise for the
15  purpose of resale by the enterprise.
16  (2) Personal property purchased by a not-for-profit
17  Illinois county fair association for use in conducting,
18  operating, or promoting the county fair.
19  (3) Personal property purchased by a not-for-profit arts
20  or cultural organization that establishes, by proof required
21  by the Department by rule, that it has received an exemption
22  under Section 501(c)(3) of the Internal Revenue Code and that
23  is organized and operated primarily for the presentation or

 

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
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.
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    LRB103 27010 HLH 53377 b
A BILL FOR

 

 

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



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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  of the State Treasurer pursuant to the Revised Uniform
2  Unclaimed Property Act. This item (42) (41) is exempt from the
3  provisions of Section 3-90.
4  (43) Beginning on July 1, 2022, food for human consumption
5  that is to be consumed off the premises where it is sold, as
6  defined in Section 3-10, except excluding alcoholic beverages,
7  food consisting of or infused with adult use cannabis, soft
8  drinks, and food that has been prepared for immediate
9  consumption. This item (43) is exempt from the provisions of
10  Section 3-90.
11  (44) Beginning on July 1, 2023, the following items, as
12  defined in Section 3-10:
13  (A) prescription and nonprescription medicines, drugs,
14  and medical appliances;
15  (B) products classified as Class III medical devices
16  by the United States Food and Drug Administration that are
17  used for cancer treatment pursuant to a prescription, as
18  well as any accessories and components related to those
19  devices;
20  (C) modifications to a motor vehicle for the purpose
21  of rendering it usable by a person with a disability; and
22  (D) insulin, blood sugar testing materials, syringes,
23  and needles used by human diabetics.
24  This item (44) is exempt from the provisions of Section
25  3-90.
26  (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;

 

 

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1  101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
2  6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
3  102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
4  eff. 5-27-22; revised 8-1-22.)
5  (35 ILCS 105/3-10)
6  Sec. 3-10. Rate of tax. Unless otherwise provided in this
7  Section, the tax imposed by this Act is at the rate of 6.25% of
8  either the selling price or the fair market value, if any, of
9  the tangible personal property. In all cases where property
10  functionally used or consumed is the same as the property that
11  was purchased at retail, then the tax is imposed on the selling
12  price of the property. In all cases where property
13  functionally used or consumed is a by-product or waste product
14  that has been refined, manufactured, or produced from property
15  purchased at retail, then the tax is imposed on the lower of
16  the fair market value, if any, of the specific property so used
17  in this State or on the selling price of the property purchased
18  at retail. For purposes of this Section "fair market value"
19  means the price at which property would change hands between a
20  willing buyer and a willing seller, neither being under any
21  compulsion to buy or sell and both having reasonable knowledge
22  of the relevant facts. The fair market value shall be
23  established by Illinois sales by the taxpayer of the same
24  property as that functionally used or consumed, or if there
25  are no such sales by the taxpayer, then comparable sales or

 

 

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1  purchases of property of like kind and character in Illinois.
2  Beginning on July 1, 2000 and through December 31, 2000,
3  with respect to motor fuel, as defined in Section 1.1 of the
4  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
5  the Use Tax Act, the tax is imposed at the rate of 1.25%.
6  Beginning on August 6, 2010 through August 15, 2010, and
7  beginning again on August 5, 2022 through August 14, 2022,
8  with respect to sales tax holiday items as defined in Section
9  3-6 of this Act, the tax is imposed at the rate of 1.25%.
10  With respect to gasohol, the tax imposed by this Act
11  applies to (i) 70% of the proceeds of sales made on or after
12  January 1, 1990, and before July 1, 2003, (ii) 80% of the
13  proceeds of sales made on or after July 1, 2003 and on or
14  before July 1, 2017, and (iii) 100% of the proceeds of sales
15  made thereafter. If, at any time, however, the tax under this
16  Act on sales of gasohol is imposed at the rate of 1.25%, then
17  the tax imposed by this Act applies to 100% of the proceeds of
18  sales of gasohol made during that time.
19  With respect to majority blended ethanol fuel, the tax
20  imposed by this Act does not apply to the proceeds of sales
21  made on or after July 1, 2003 and on or before December 31,
22  2023 but applies to 100% of the proceeds of sales made
23  thereafter.
24  With respect to biodiesel blends with no less than 1% and
25  no more than 10% biodiesel, the tax imposed by this Act applies
26  to (i) 80% of the proceeds of sales made on or after July 1,

 

 

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

 

 

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1  premises where it is sold (other than alcoholic beverages,
2  food consisting of or infused with adult use cannabis, soft
3  drinks, and food that has been prepared for immediate
4  consumption), the tax is imposed at the rate of 0%.
5  Until July 1, 2023, with With respect to prescription and
6  nonprescription medicines, drugs, medical appliances, products
7  classified as Class III medical devices by the United States
8  Food and Drug Administration that are used for cancer
9  treatment pursuant to a prescription, as well as any
10  accessories and components related to those devices,
11  modifications to a motor vehicle for the purpose of rendering
12  it usable by a person with a disability, and insulin, blood
13  sugar testing materials, syringes, and needles used by human
14  diabetics, the tax is imposed at the rate of 1%. For the
15  purposes of this Section, until September 1, 2009: the term
16  "soft drinks" means any complete, finished, ready-to-use,
17  non-alcoholic drink, whether carbonated or not, including, but
18  not limited to, soda water, cola, fruit juice, vegetable
19  juice, carbonated water, and all other preparations commonly
20  known as soft drinks of whatever kind or description that are
21  contained in any closed or sealed bottle, can, carton, or
22  container, regardless of size; but "soft drinks" does not
23  include coffee, tea, non-carbonated water, infant formula,
24  milk or milk products as defined in the Grade A Pasteurized
25  Milk and Milk Products Act, or drinks containing 50% or more
26  natural fruit or vegetable juice.

 

 

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

 

 

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

 

 

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1  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2  and does not include cannabis subject to tax under the
3  Compassionate Use of Medical Cannabis Program Act.
4  If the property that is purchased at retail from a
5  retailer is acquired outside Illinois and used outside
6  Illinois before being brought to Illinois for use here and is
7  taxable under this Act, the "selling price" on which the tax is
8  computed shall be reduced by an amount that represents a
9  reasonable allowance for depreciation for the period of prior
10  out-of-state use.
11  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12  102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
13  4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
14  102-700, Article 65, Section 65-5, eff. 4-19-22; revised
15  5-27-22.)
16  Section 10. The Service Use Tax Act is amended by changing
17  Sections 3-5 and 3-10 as follows:
18  (35 ILCS 110/3-5)
19  Sec. 3-5. Exemptions. Use of the following tangible
20  personal property is exempt from the tax imposed by this Act:
21  (1) Personal property purchased from a corporation,
22  society, association, foundation, institution, or
23  organization, other than a limited liability company, that is
24  organized and operated as a not-for-profit service enterprise

 

 

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1  for the benefit of persons 65 years of age or older if the
2  personal property was not purchased by the enterprise for the
3  purpose of resale by the enterprise.
4  (2) Personal property purchased by a non-profit Illinois
5  county fair association for use in conducting, operating, or
6  promoting the county fair.
7  (3) Personal property purchased by a not-for-profit arts
8  or cultural organization that establishes, by proof required
9  by the Department by rule, that it has received an exemption
10  under Section 501(c)(3) of the Internal Revenue Code and that
11  is organized and operated primarily for the presentation or
12  support of arts or cultural programming, activities, or
13  services. These organizations include, but are not limited to,
14  music and dramatic arts organizations such as symphony
15  orchestras and theatrical groups, arts and cultural service
16  organizations, local arts councils, visual arts organizations,
17  and media arts organizations. On and after July 1, 2001 (the
18  effective date of Public Act 92-35), however, an entity
19  otherwise eligible for this exemption shall not make tax-free
20  purchases unless it has an active identification number issued
21  by the Department.
22  (4) Legal tender, currency, medallions, or gold or silver
23  coinage issued by the State of Illinois, the government of the
24  United States of America, or the government of any foreign
25  country, and bullion.
26  (5) Until July 1, 2003 and beginning again on September 1,

 

 

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1  2004 through August 30, 2014, graphic arts machinery and
2  equipment, including repair and replacement parts, both new
3  and used, and including that manufactured on special order or
4  purchased for lease, certified by the purchaser to be used
5  primarily for graphic arts production. Equipment includes
6  chemicals or chemicals acting as catalysts but only if the
7  chemicals or chemicals acting as catalysts effect a direct and
8  immediate change upon a graphic arts product. Beginning on
9  July 1, 2017, graphic arts machinery and equipment is included
10  in the manufacturing and assembling machinery and equipment
11  exemption under Section 2 of this Act.
12  (6) Personal property purchased from a teacher-sponsored
13  student organization affiliated with an elementary or
14  secondary school located in Illinois.
15  (7) Farm machinery and equipment, both new and used,
16  including that manufactured on special order, certified by the
17  purchaser to be used primarily for production agriculture or
18  State or federal agricultural programs, including individual
19  replacement parts for the machinery and equipment, including
20  machinery and equipment purchased for lease, and including
21  implements of husbandry defined in Section 1-130 of the
22  Illinois Vehicle Code, farm machinery and agricultural
23  chemical and fertilizer spreaders, and nurse wagons required
24  to be registered under Section 3-809 of the Illinois Vehicle
25  Code, but excluding other motor vehicles required to be
26  registered under the Illinois Vehicle Code. Horticultural

 

 

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1  polyhouses or hoop houses used for propagating, growing, or
2  overwintering plants shall be considered farm machinery and
3  equipment under this item (7). Agricultural chemical tender
4  tanks and dry boxes shall include units sold separately from a
5  motor vehicle required to be licensed and units sold mounted
6  on a motor vehicle required to be licensed if the selling price
7  of the tender is separately stated.
8  Farm machinery and equipment shall include precision
9  farming equipment that is installed or purchased to be
10  installed on farm machinery and equipment including, but not
11  limited to, tractors, harvesters, sprayers, planters, seeders,
12  or spreaders. Precision farming equipment includes, but is not
13  limited to, soil testing sensors, computers, monitors,
14  software, global positioning and mapping systems, and other
15  such equipment.
16  Farm machinery and equipment also includes computers,
17  sensors, software, and related equipment used primarily in the
18  computer-assisted operation of production agriculture
19  facilities, equipment, and activities such as, but not limited
20  to, the collection, monitoring, and correlation of animal and
21  crop data for the purpose of formulating animal diets and
22  agricultural chemicals. This item (7) is exempt from the
23  provisions of Section 3-75.
24  (8) Until June 30, 2013, fuel and petroleum products sold
25  to or used by an air common carrier, certified by the carrier
26  to be used for consumption, shipment, or storage in the

 

 

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

 

 

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

 

 

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1  (14) Horses, or interests in horses, registered with and
2  meeting the requirements of any of the Arabian Horse Club
3  Registry of America, Appaloosa Horse Club, American Quarter
4  Horse Association, United States Trotting Association, or
5  Jockey Club, as appropriate, used for purposes of breeding or
6  racing for prizes. This item (14) is exempt from the
7  provisions of Section 3-75, and the exemption provided for
8  under this item (14) applies for all periods beginning May 30,
9  1995, but no claim for credit or refund is allowed on or after
10  January 1, 2008 (the effective date of Public Act 95-88) for
11  such taxes paid during the period beginning May 30, 2000 and
12  ending on January 1, 2008 (the effective date of Public Act
13  95-88).
14  (15) Computers and communications equipment utilized for
15  any hospital purpose and equipment used in the diagnosis,
16  analysis, or treatment of hospital patients purchased by a
17  lessor who leases the equipment, under a lease of one year or
18  longer executed or in effect at the time the lessor would
19  otherwise be subject to the tax imposed by this Act, to a
20  hospital that has been issued an active tax exemption
21  identification number by the Department under Section 1g of
22  the Retailers' Occupation Tax Act. If the equipment is leased
23  in a manner that does not qualify for this exemption or is used
24  in any other non-exempt manner, the lessor shall be liable for
25  the tax imposed under this Act or the Use Tax Act, as the case
26  may be, based on the fair market value of the property at the

 

 

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

 

 

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1  from the lessee, the lessee shall have a legal right to claim a
2  refund of that amount from the lessor. If, however, that
3  amount is not refunded to the lessee for any reason, the lessor
4  is liable to pay that amount to the Department.
5  (17) Beginning with taxable years ending on or after
6  December 31, 1995 and ending with taxable years ending on or
7  before December 31, 2004, personal property that is donated
8  for disaster relief to be used in a State or federally declared
9  disaster area in Illinois or bordering Illinois by a
10  manufacturer or retailer that is registered in this State to a
11  corporation, society, association, foundation, or institution
12  that has been issued a sales tax exemption identification
13  number by the Department that assists victims of the disaster
14  who reside within the declared disaster area.
15  (18) Beginning with taxable years ending on or after
16  December 31, 1995 and ending with taxable years ending on or
17  before December 31, 2004, personal property that is used in
18  the performance of infrastructure repairs in this State,
19  including but not limited to municipal roads and streets,
20  access roads, bridges, sidewalks, waste disposal systems,
21  water and sewer line extensions, water distribution and
22  purification facilities, storm water drainage and retention
23  facilities, and sewage treatment facilities, resulting from a
24  State or federally declared disaster in Illinois or bordering
25  Illinois when such repairs are initiated on facilities located
26  in the declared disaster area within 6 months after the

 

 

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1  disaster.
2  (19) Beginning July 1, 1999, game or game birds purchased
3  at a "game breeding and hunting preserve area" as that term is
4  used in the Wildlife Code. This paragraph is exempt from the
5  provisions of Section 3-75.
6  (20) A motor vehicle, as that term is defined in Section
7  1-146 of the Illinois Vehicle Code, that is donated to a
8  corporation, limited liability company, society, association,
9  foundation, or institution that is determined by the
10  Department to be organized and operated exclusively for
11  educational purposes. For purposes of this exemption, "a
12  corporation, limited liability company, society, association,
13  foundation, or institution organized and operated exclusively
14  for educational purposes" means all tax-supported public
15  schools, private schools that offer systematic instruction in
16  useful branches of learning by methods common to public
17  schools and that compare favorably in their scope and
18  intensity with the course of study presented in tax-supported
19  schools, and vocational or technical schools or institutes
20  organized and operated exclusively to provide a course of
21  study of not less than 6 weeks duration and designed to prepare
22  individuals to follow a trade or to pursue a manual,
23  technical, mechanical, industrial, business, or commercial
24  occupation.
25  (21) Beginning January 1, 2000, personal property,
26  including food, purchased through fundraising events for the

 

 

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1  benefit of a public or private elementary or secondary school,
2  a group of those schools, or one or more school districts if
3  the events are sponsored by an entity recognized by the school
4  district that consists primarily of volunteers and includes
5  parents and teachers of the school children. This paragraph
6  does not apply to fundraising events (i) for the benefit of
7  private home instruction or (ii) for which the fundraising
8  entity purchases the personal property sold at the events from
9  another individual or entity that sold the property for the
10  purpose of resale by the fundraising entity and that profits
11  from the sale to the fundraising entity. This paragraph is
12  exempt from the provisions of Section 3-75.
13  (22) Beginning January 1, 2000 and through December 31,
14  2001, new or used automatic vending machines that prepare and
15  serve hot food and beverages, including coffee, soup, and
16  other items, and replacement parts for these machines.
17  Beginning January 1, 2002 and through June 30, 2003, machines
18  and parts for machines used in commercial, coin-operated
19  amusement and vending business if a use or occupation tax is
20  paid on the gross receipts derived from the use of the
21  commercial, coin-operated amusement and vending machines. This
22  paragraph is exempt from the provisions of Section 3-75.
23  (23) Beginning August 23, 2001 and through June 30, 2016,
24  food for human consumption that is to be consumed off the
25  premises where it is sold (other than alcoholic beverages,
26  soft drinks, and food that has been prepared for immediate

 

 

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

 

 

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

 

 

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1  refund of that amount from the lessor. If, however, that
2  amount is not refunded to the lessee for any reason, the lessor
3  is liable to pay that amount to the Department. This paragraph
4  is exempt from the provisions of Section 3-75.
5  (26) Beginning January 1, 2008, tangible personal property
6  used in the construction or maintenance of a community water
7  supply, as defined under Section 3.145 of the Environmental
8  Protection Act, that is operated by a not-for-profit
9  corporation that holds a valid water supply permit issued
10  under Title IV of the Environmental Protection Act. This
11  paragraph is exempt from the provisions of Section 3-75.
12  (27) Beginning January 1, 2010 and continuing through
13  December 31, 2024, materials, parts, equipment, components,
14  and furnishings incorporated into or upon an aircraft as part
15  of the modification, refurbishment, completion, replacement,
16  repair, or maintenance of the aircraft. This exemption
17  includes consumable supplies used in the modification,
18  refurbishment, completion, replacement, repair, and
19  maintenance of aircraft, but excludes any materials, parts,
20  equipment, components, and consumable supplies used in the
21  modification, replacement, repair, and maintenance of aircraft
22  engines or power plants, whether such engines or power plants
23  are installed or uninstalled upon any such aircraft.
24  "Consumable supplies" include, but are not limited to,
25  adhesive, tape, sandpaper, general purpose lubricants,
26  cleaning solution, latex gloves, and protective films. This

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  device and is packaged and sold with the pump device at the
2  time of sale.
3  "Breast pump collection and storage supplies" means
4  items of tangible personal property designed or marketed
5  to be used in conjunction with a breast pump to collect
6  milk expressed from a human breast and to store collected
7  milk until it is ready for consumption.
8  "Breast pump collection and storage supplies"
9  includes, but is not limited to: breast shields and breast
10  shield connectors; breast pump tubes and tubing adapters;
11  breast pump valves and membranes; backflow protectors and
12  backflow protector adaptors; bottles and bottle caps
13  specific to the operation of the breast pump; and breast
14  milk storage bags.
15  "Breast pump collection and storage supplies" does not
16  include: (1) bottles and bottle caps not specific to the
17  operation of the breast pump; (2) breast pump travel bags
18  and other similar carrying accessories, including ice
19  packs, labels, and other similar products; (3) breast pump
20  cleaning supplies; (4) nursing bras, bra pads, breast
21  shells, and other similar products; and (5) creams,
22  ointments, and other similar products that relieve
23  breastfeeding-related symptoms or conditions of the
24  breasts or nipples, unless sold as part of a breast pump
25  kit that is pre-packaged by the breast pump manufacturer
26  or distributor.

 

 

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1  "Breast pump kit" means a kit that: (1) contains no
2  more than a breast pump, breast pump collection and
3  storage supplies, a rechargeable battery for operating the
4  breast pump, a breastmilk cooler, bottle stands, ice
5  packs, and a breast pump carrying case; and (2) is
6  pre-packaged as a breast pump kit by the breast pump
7  manufacturer or distributor.
8  (33) (32) Tangible personal property sold by or on behalf
9  of the State Treasurer pursuant to the Revised Uniform
10  Unclaimed Property Act. This item (33) (32) is exempt from the
11  provisions of Section 3-75.
12  (34) Beginning on July 1, 2022, food prepared for
13  immediate consumption and transferred incident to a sale of
14  service subject to this Act or the Service Occupation Tax Act
15  by an entity licensed under the Hospital Licensing Act, the
16  Nursing Home Care Act, the Assisted Living and Shared Housing
17  Act, the ID/DD Community Care Act, the MC/DD Act, the
18  Specialized Mental Health Rehabilitation Act of 2013, or the
19  Child Care Act of 1969, or an entity that holds a permit issued
20  pursuant to the Life Care Facilities Act, as defined in
21  Section 3-10. This item (34) is exempt from the provisions of
22  Section 3-75.
23  (35) Beginning on July 1, 2022, food for human consumption
24  that is to be consumed off the premises where it is sold, as
25  defined in Section 3-10, except excluding alcoholic beverages,
26  food consisting of or infused with adult use cannabis, soft

 

 

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1  drinks, and food that has been prepared for immediate
2  consumption. This item (35) is exempt from the provisions of
3  Section 3-75.
4  (36) Beginning on July 1, 2023, the following items, as
5  defined in Section 3-10:
6  (A) prescription and nonprescription medicines, drugs,
7  and medical appliances;
8  (B) products classified as Class III medical devices
9  by the United States Food and Drug Administration that are
10  used for cancer treatment pursuant to a prescription, as
11  well as any accessories and components related to those
12  devices;
13  (C) modifications to a motor vehicle for the purpose
14  of rendering it usable by a person with a disability; and
15  (D) insulin, blood sugar testing materials, syringes,
16  and needles used by human diabetics.
17  This item (36) is exempt from the provisions of Section
18  3-75.
19  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
20  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
21  70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
22  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
23  (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
24  Sec. 3-10. Rate of tax. Unless otherwise provided in this
25  Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

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1  the selling price of tangible personal property transferred as
2  an incident to the sale of service, but, for the purpose of
3  computing this tax, in no event shall the selling price be less
4  than the cost price of the property to the serviceman.
5  Beginning on July 1, 2000 and through December 31, 2000,
6  with respect to motor fuel, as defined in Section 1.1 of the
7  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8  the Use Tax Act, the tax is imposed at the rate of 1.25%.
9  With respect to gasohol, as defined in the Use Tax Act, the
10  tax imposed by this Act applies to (i) 70% of the selling price
11  of property transferred as an incident to the sale of service
12  on or after January 1, 1990, and before July 1, 2003, (ii) 80%
13  of the selling price of property transferred as an incident to
14  the sale of service on or after July 1, 2003 and on or before
15  July 1, 2017, and (iii) 100% of the selling price thereafter.
16  If, at any time, however, the tax under this Act on sales of
17  gasohol, as defined in the Use Tax Act, is imposed at the rate
18  of 1.25%, then the tax imposed by this Act applies to 100% of
19  the proceeds of sales of gasohol made during that time.
20  With respect to majority blended ethanol fuel, as defined
21  in the Use Tax Act, the tax imposed by this Act does not apply
22  to the selling price of property transferred as an incident to
23  the sale of service on or after July 1, 2003 and on or before
24  December 31, 2023 but applies to 100% of the selling price
25  thereafter.
26  With respect to biodiesel blends, as defined in the Use

 

 

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

 

 

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

 

 

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1  Beginning on July 1, 2022 and until July 1, 2023, the tax
2  shall be imposed at the rate of 0% on food prepared for
3  immediate consumption and transferred incident to a sale of
4  service subject to this Act or the Service Occupation Tax Act
5  by an entity licensed under the Hospital Licensing Act, the
6  Nursing Home Care Act, the Assisted Living and Shared Housing
7  Act, the ID/DD Community Care Act, the MC/DD Act, the
8  Specialized Mental Health Rehabilitation Act of 2013, or the
9  Child Care Act of 1969, or an entity that holds a permit issued
10  pursuant to the Life Care Facilities Act. Beginning on July 1,
11  2022 and until July 1, 2023, the tax shall also be imposed at
12  the rate of 0% on food for human consumption that is to be
13  consumed off the premises where it is sold (other than
14  alcoholic beverages, food consisting of or infused with adult
15  use cannabis, soft drinks, and food that has been prepared for
16  immediate consumption and is not otherwise included in this
17  paragraph).
18  Until July 1, 2023, the The tax shall also be imposed at
19  the rate of 1% on prescription and nonprescription medicines,
20  drugs, medical appliances, products classified as Class III
21  medical devices by the United States Food and Drug
22  Administration that are used for cancer treatment pursuant to
23  a prescription, as well as any accessories and components
24  related to those devices, modifications to a motor vehicle for
25  the purpose of rendering it usable by a person with a
26  disability, and insulin, blood sugar testing materials,

 

 

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

 

 

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

 

 

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1  "over-the-counter-drug" label includes:
2  (A) a A "Drug Facts" panel; or
3  (B) a A statement of the "active ingredient(s)" with a
4  list of those ingredients contained in the compound,
5  substance or preparation.
6  Beginning on January 1, 2014 (the effective date of Public
7  Act 98-122), "prescription and nonprescription medicines and
8  drugs" includes medical cannabis purchased from a registered
9  dispensing organization under the Compassionate Use of Medical
10  Cannabis Program Act.
11  As used in this Section, "adult use cannabis" means
12  cannabis subject to tax under the Cannabis Cultivation
13  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
14  and does not include cannabis subject to tax under the
15  Compassionate Use of Medical Cannabis Program Act.
16  If the property that is acquired from a serviceman is
17  acquired outside Illinois and used outside Illinois before
18  being brought to Illinois for use here and is taxable under
19  this Act, the "selling price" on which the tax is computed
20  shall be reduced by an amount that represents a reasonable
21  allowance for depreciation for the period of prior
22  out-of-state use.
23  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
24  102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
25  20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
26  60-20, eff. 4-19-22; revised 6-1-22.)

 

 

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1  Section 15. The Service Occupation Tax Act is amended by
2  changing Sections 3-5 and 3-10 as follows:
3  (35 ILCS 115/3-5)
4  Sec. 3-5. Exemptions. The following tangible personal
5  property is exempt from the tax imposed by this Act:
6  (1) Personal property sold by a corporation, society,
7  association, foundation, institution, or organization, other
8  than a limited liability company, that is organized and
9  operated as a not-for-profit service enterprise for the
10  benefit of persons 65 years of age or older if the personal
11  property was not purchased by the enterprise for the purpose
12  of resale by the enterprise.
13  (2) Personal property purchased by a not-for-profit
14  Illinois county fair association for use in conducting,
15  operating, or promoting the county fair.
16  (3) Personal property purchased by any not-for-profit arts
17  or cultural organization that establishes, by proof required
18  by the Department by rule, that it has received an exemption
19  under Section 501(c)(3) of the Internal Revenue Code and that
20  is organized and operated primarily for the presentation or
21  support of arts or cultural programming, activities, or
22  services. These organizations include, but are not limited to,
23  music and dramatic arts organizations such as symphony
24  orchestras and theatrical groups, arts and cultural service

 

 

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1  organizations, local arts councils, visual arts organizations,
2  and media arts organizations. On and after July 1, 2001 (the
3  effective date of Public Act 92-35), however, an entity
4  otherwise eligible for this exemption shall not make tax-free
5  purchases unless it has an active identification number issued
6  by the Department.
7  (4) Legal tender, currency, medallions, or gold or silver
8  coinage issued by the State of Illinois, the government of the
9  United States of America, or the government of any foreign
10  country, and bullion.
11  (5) Until July 1, 2003 and beginning again on September 1,
12  2004 through August 30, 2014, graphic arts machinery and
13  equipment, including repair and replacement parts, both new
14  and used, and including that manufactured on special order or
15  purchased for lease, certified by the purchaser to be used
16  primarily for graphic arts production. Equipment includes
17  chemicals or chemicals acting as catalysts but only if the
18  chemicals or chemicals acting as catalysts effect a direct and
19  immediate change upon a graphic arts product. Beginning on
20  July 1, 2017, graphic arts machinery and equipment is included
21  in the manufacturing and assembling machinery and equipment
22  exemption under Section 2 of this Act.
23  (6) Personal property sold by a teacher-sponsored student
24  organization affiliated with an elementary or secondary school
25  located in Illinois.
26  (7) Farm machinery and equipment, both new and used,

 

 

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

 

 

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1  Farm machinery and equipment also includes computers,
2  sensors, software, and related equipment used primarily in the
3  computer-assisted operation of production agriculture
4  facilities, equipment, and activities such as, but not limited
5  to, the collection, monitoring, and correlation of animal and
6  crop data for the purpose of formulating animal diets and
7  agricultural chemicals. This item (7) is exempt from the
8  provisions of Section 3-55.
9  (8) Until June 30, 2013, fuel and petroleum products sold
10  to or used by an air common carrier, certified by the carrier
11  to be used for consumption, shipment, or storage in the
12  conduct of its business as an air common carrier, for a flight
13  destined for or returning from a location or locations outside
14  the United States without regard to previous or subsequent
15  domestic stopovers.
16  Beginning July 1, 2013, fuel and petroleum products sold
17  to or used by an air carrier, certified by the carrier to be
18  used for consumption, shipment, or storage in the conduct of
19  its business as an air common carrier, for a flight that (i) is
20  engaged in foreign trade or is engaged in trade between the
21  United States and any of its possessions and (ii) transports
22  at least one individual or package for hire from the city of
23  origination to the city of final destination on the same
24  aircraft, without regard to a change in the flight number of
25  that aircraft.
26  (9) Proceeds of mandatory service charges separately

 

 

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

 

 

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1  excluding motor vehicles required to be registered under the
2  Illinois Vehicle Code. The changes made to this Section by
3  Public Act 97-767 apply on and after July 1, 2003, but no claim
4  for credit or refund is allowed on or after August 16, 2013
5  (the effective date of Public Act 98-456) for such taxes paid
6  during the period beginning July 1, 2003 and ending on August
7  16, 2013 (the effective date of Public Act 98-456).
8  (13) Beginning January 1, 1992 and through June 30, 2016,
9  food for human consumption that is to be consumed off the
10  premises where it is sold (other than alcoholic beverages,
11  soft drinks and food that has been prepared for immediate
12  consumption) and prescription and non-prescription medicines,
13  drugs, medical appliances, and insulin, urine testing
14  materials, syringes, and needles used by diabetics, for human
15  use, when purchased for use by a person receiving medical
16  assistance under Article V of the Illinois Public Aid Code who
17  resides in a licensed long-term care facility, as defined in
18  the Nursing Home Care Act, or in a licensed facility as defined
19  in the ID/DD Community Care Act, the MC/DD Act, or the
20  Specialized Mental Health Rehabilitation Act of 2013.
21  (14) Semen used for artificial insemination of livestock
22  for direct agricultural production.
23  (15) Horses, or interests in horses, registered with and
24  meeting the requirements of any of the Arabian Horse Club
25  Registry of America, Appaloosa Horse Club, American Quarter
26  Horse Association, United States Trotting Association, or

 

 

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1  Jockey Club, as appropriate, used for purposes of breeding or
2  racing for prizes. This item (15) is exempt from the
3  provisions of Section 3-55, and the exemption provided for
4  under this item (15) applies for all periods beginning May 30,
5  1995, but no claim for credit or refund is allowed on or after
6  January 1, 2008 (the effective date of Public Act 95-88) for
7  such taxes paid during the period beginning May 30, 2000 and
8  ending on January 1, 2008 (the effective date of Public Act
9  95-88).
10  (16) Computers and communications equipment utilized for
11  any hospital purpose and equipment used in the diagnosis,
12  analysis, or treatment of hospital patients sold to a lessor
13  who leases the equipment, under a lease of one year or longer
14  executed or in effect at the time of the purchase, to a
15  hospital that has been issued an active tax exemption
16  identification number by the Department under Section 1g of
17  the Retailers' Occupation Tax Act.
18  (17) Personal property sold to a lessor who leases the
19  property, under a lease of one year or longer executed or in
20  effect at the time of the purchase, to a governmental body that
21  has been issued an active tax exemption identification number
22  by the Department under Section 1g of the Retailers'
23  Occupation Tax Act.
24  (18) Beginning with taxable years ending on or after
25  December 31, 1995 and ending with taxable years ending on or
26  before December 31, 2004, personal property that is donated

 

 

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1  for disaster relief to be used in a State or federally declared
2  disaster area in Illinois or bordering Illinois by a
3  manufacturer or retailer that is registered in this State to a
4  corporation, society, association, foundation, or institution
5  that has been issued a sales tax exemption identification
6  number by the Department that assists victims of the disaster
7  who reside within the declared disaster area.
8  (19) Beginning with taxable years ending on or after
9  December 31, 1995 and ending with taxable years ending on or
10  before December 31, 2004, personal property that is used in
11  the performance of infrastructure repairs in this State,
12  including but not limited to municipal roads and streets,
13  access roads, bridges, sidewalks, waste disposal systems,
14  water and sewer line extensions, water distribution and
15  purification facilities, storm water drainage and retention
16  facilities, and sewage treatment facilities, resulting from a
17  State or federally declared disaster in Illinois or bordering
18  Illinois when such repairs are initiated on facilities located
19  in the declared disaster area within 6 months after the
20  disaster.
21  (20) Beginning July 1, 1999, game or game birds sold at a
22  "game breeding and hunting preserve area" as that term is used
23  in the Wildlife Code. This paragraph is exempt from the
24  provisions of Section 3-55.
25  (21) A motor vehicle, as that term is defined in Section
26  1-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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1  entity purchases the personal property sold at the events from
2  another individual or entity that sold the property for the
3  purpose of resale by the fundraising entity and that profits
4  from the sale to the fundraising entity. This paragraph is
5  exempt from the provisions of Section 3-55.
6  (23) Beginning January 1, 2000 and through December 31,
7  2001, new or used automatic vending machines that prepare and
8  serve hot food and beverages, including coffee, soup, and
9  other items, and replacement parts for these machines.
10  Beginning January 1, 2002 and through June 30, 2003, machines
11  and parts for machines used in commercial, coin-operated
12  amusement and vending business if a use or occupation tax is
13  paid on the gross receipts derived from the use of the
14  commercial, coin-operated amusement and vending machines. This
15  paragraph is exempt from the provisions of Section 3-55.
16  (24) Beginning on August 2, 2001 (the effective date of
17  Public Act 92-227), computers and communications equipment
18  utilized for any hospital purpose and equipment used in the
19  diagnosis, analysis, or treatment of hospital patients sold to
20  a lessor who leases the equipment, under a lease of one year or
21  longer executed or in effect at the time of the purchase, to a
22  hospital that has been issued an active tax exemption
23  identification number by the Department under Section 1g of
24  the Retailers' Occupation Tax Act. This paragraph is exempt
25  from the provisions of Section 3-55.
26  (25) Beginning on August 2, 2001 (the effective date of

 

 

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1  Public Act 92-227), personal property sold to a lessor who
2  leases the property, under a lease of one year or longer
3  executed or in effect at the time of the purchase, to a
4  governmental body that has been issued an active tax exemption
5  identification number by the Department under Section 1g of
6  the Retailers' Occupation Tax Act. This paragraph is exempt
7  from the provisions of Section 3-55.
8  (26) Beginning on January 1, 2002 and through June 30,
9  2016, tangible personal property purchased from an Illinois
10  retailer by a taxpayer engaged in centralized purchasing
11  activities in Illinois who will, upon receipt of the property
12  in Illinois, temporarily store the property in Illinois (i)
13  for the purpose of subsequently transporting it outside this
14  State for use or consumption thereafter solely outside this
15  State or (ii) for the purpose of being processed, fabricated,
16  or manufactured into, attached to, or incorporated into other
17  tangible personal property to be transported outside this
18  State and thereafter used or consumed solely outside this
19  State. The Director of Revenue shall, pursuant to rules
20  adopted in accordance with the Illinois Administrative
21  Procedure Act, issue a permit to any taxpayer in good standing
22  with the Department who is eligible for the exemption under
23  this paragraph (26). The permit issued under this paragraph
24  (26) shall authorize the holder, to the extent and in the
25  manner specified in the rules adopted under this Act, to
26  purchase tangible personal property from a retailer exempt

 

 

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1  from the taxes imposed by this Act. Taxpayers shall maintain
2  all necessary books and records to substantiate the use and
3  consumption of all such tangible personal property outside of
4  the State of Illinois.
5  (27) Beginning January 1, 2008, tangible personal property
6  used in the construction or maintenance of a community water
7  supply, as defined under Section 3.145 of the Environmental
8  Protection Act, that is operated by a not-for-profit
9  corporation that holds a valid water supply permit issued
10  under Title IV of the Environmental Protection Act. This
11  paragraph is exempt from the provisions of Section 3-55.
12  (28) Tangible personal property sold to a
13  public-facilities corporation, as described in Section
14  11-65-10 of the Illinois Municipal Code, for purposes of
15  constructing or furnishing a municipal convention hall, but
16  only if the legal title to the municipal convention hall is
17  transferred to the municipality without any further
18  consideration by or on behalf of the municipality at the time
19  of the completion of the municipal convention hall or upon the
20  retirement or redemption of any bonds or other debt
21  instruments issued by the public-facilities corporation in
22  connection with the development of the municipal convention
23  hall. This exemption includes existing public-facilities
24  corporations as provided in Section 11-65-25 of the Illinois
25  Municipal Code. This paragraph is exempt from the provisions
26  of Section 3-55.

 

 

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1  (29) Beginning January 1, 2010 and continuing through
2  December 31, 2024, materials, parts, equipment, components,
3  and furnishings incorporated into or upon an aircraft as part
4  of the modification, refurbishment, completion, replacement,
5  repair, or maintenance of the aircraft. This exemption
6  includes consumable supplies used in the modification,
7  refurbishment, completion, replacement, repair, and
8  maintenance of aircraft, but excludes any materials, parts,
9  equipment, components, and consumable supplies used in the
10  modification, replacement, repair, and maintenance of aircraft
11  engines or power plants, whether such engines or power plants
12  are installed or uninstalled upon any such aircraft.
13  "Consumable supplies" include, but are not limited to,
14  adhesive, tape, sandpaper, general purpose lubricants,
15  cleaning solution, latex gloves, and protective films. This
16  exemption applies only to the transfer of qualifying tangible
17  personal property incident to the modification, refurbishment,
18  completion, replacement, repair, or maintenance of an aircraft
19  by persons who (i) hold an Air Agency Certificate and are
20  empowered to operate an approved repair station by the Federal
21  Aviation Administration, (ii) have a Class IV Rating, and
22  (iii) conduct operations in accordance with Part 145 of the
23  Federal Aviation Regulations. The exemption does not include
24  aircraft operated by a commercial air carrier providing
25  scheduled passenger air service pursuant to authority issued
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1  Regulations. The changes made to this paragraph (29) by Public
2  Act 98-534 are declarative of existing law. It is the intent of
3  the General Assembly that the exemption under this paragraph
4  (29) applies continuously from January 1, 2010 through
5  December 31, 2024; however, no claim for credit or refund is
6  allowed for taxes paid as a result of the disallowance of this
7  exemption on or after January 1, 2015 and prior to February 5,
8  2020 (the effective date of Public Act 101-629) this
9  amendatory Act of the 101st General Assembly.
10  (30) Beginning January 1, 2017 and through December 31,
11  2026, menstrual pads, tampons, and menstrual cups.
12  (31) Tangible personal property transferred to a purchaser
13  who is exempt from tax by operation of federal law. This
14  paragraph is exempt from the provisions of Section 3-55.
15  (32) Qualified tangible personal property used in the
16  construction or operation of a data center that has been
17  granted a certificate of exemption by the Department of
18  Commerce and Economic Opportunity, whether that tangible
19  personal property is purchased by the owner, operator, or
20  tenant of the data center or by a contractor or subcontractor
21  of the owner, operator, or tenant. Data centers that would
22  have qualified for a certificate of exemption prior to January
23  1, 2020 had Public Act 101-31 this amendatory Act of the 101st
24  General Assembly been in effect, may apply for and obtain an
25  exemption for subsequent purchases of computer equipment or
26  enabling software purchased or leased to upgrade, supplement,

 

 

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1  or replace computer equipment or enabling software purchased
2  or leased in the original investment that would have
3  qualified.
4  The Department of Commerce and Economic Opportunity shall
5  grant a certificate of exemption under this item (32) to
6  qualified data centers as defined by Section 605-1025 of the
7  Department of Commerce and Economic Opportunity Law of the
8  Civil Administrative Code of Illinois.
9  For the purposes of this item (32):
10  "Data center" means a building or a series of
11  buildings rehabilitated or constructed to house working
12  servers in one physical location or multiple sites within
13  the State of Illinois.
14  "Qualified tangible personal property" means:
15  electrical systems and equipment; climate control and
16  chilling equipment and systems; mechanical systems and
17  equipment; monitoring and secure systems; emergency
18  generators; hardware; computers; servers; data storage
19  devices; network connectivity equipment; racks; cabinets;
20  telecommunications cabling infrastructure; raised floor
21  systems; peripheral components or systems; software;
22  mechanical, electrical, or plumbing systems; battery
23  systems; cooling systems and towers; temperature control
24  systems; other cabling; and other data center
25  infrastructure equipment and systems necessary to operate
26  qualified tangible personal property, including fixtures;

 

 

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1  and component parts of any of the foregoing, including
2  installation, maintenance, repair, refurbishment, and
3  replacement of qualified tangible personal property to
4  generate, transform, transmit, distribute, or manage
5  electricity necessary to operate qualified tangible
6  personal property; and all other tangible personal
7  property that is essential to the operations of a computer
8  data center. The term "qualified tangible personal
9  property" also includes building materials physically
10  incorporated in to the qualifying data center. To document
11  the exemption allowed under this Section, the retailer
12  must obtain from the purchaser a copy of the certificate
13  of eligibility issued by the Department of Commerce and
14  Economic Opportunity.
15  This item (32) is exempt from the provisions of Section
16  3-55.
17  (33) Beginning July 1, 2022, breast pumps, breast pump
18  collection and storage supplies, and breast pump kits. This
19  item (33) is exempt from the provisions of Section 3-55. As
20  used in this item (33):
21  "Breast pump" means an electrically controlled or
22  manually controlled pump device designed or marketed to be
23  used to express milk from a human breast during lactation,
24  including the pump device and any battery, AC adapter, or
25  other power supply unit that is used to power the pump
26  device and is packaged and sold with the pump device at the

 

 

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

 

 

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1  more than a breast pump, breast pump collection and
2  storage supplies, a rechargeable battery for operating the
3  breast pump, a breastmilk cooler, bottle stands, ice
4  packs, and a breast pump carrying case; and (2) is
5  pre-packaged as a breast pump kit by the breast pump
6  manufacturer or distributor.
7  (34) (33) Tangible personal property sold by or on behalf
8  of the State Treasurer pursuant to the Revised Uniform
9  Unclaimed Property Act. This item (34) (33) is exempt from the
10  provisions of Section 3-55.
11  (35) Beginning on July 1, 2022, food prepared for
12  immediate consumption and transferred incident to a sale of
13  service subject to this Act or the Service Occupation Tax Act
14  by an entity licensed under the Hospital Licensing Act, the
15  Nursing Home Care Act, the Assisted Living and Shared Housing
16  Act, the ID/DD Community Care Act, the MC/DD Act, the
17  Specialized Mental Health Rehabilitation Act of 2013, or the
18  Child Care Act of 1969, or an entity that holds a permit issued
19  pursuant to the Life Care Facilities Act, as defined in
20  Section 3-10. This item (35) is exempt from the provisions of
21  Section 3-55.
22  (36) Beginning on July 1, 2022, food for human consumption
23  that is to be consumed off the premises where it is sold, as
24  defined in Section 3-10, except excluding alcoholic beverages,
25  food consisting of or infused with adult use cannabis, soft
26  drinks, and food that has been prepared for immediate

 

 

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1  consumption. This item (36) is exempt from the provisions of
2  Section 3-55.
3  (37) Beginning on July 1, 2023, the following items, as
4  defined in Section 3-10:
5  (A) prescription and nonprescription medicines, drugs,
6  and medical appliances;
7  (B) products classified as Class III medical devices
8  by the United States Food and Drug Administration that are
9  used for cancer treatment pursuant to a prescription, as
10  well as any accessories and components related to those
11  devices;
12  (C) modifications to a motor vehicle for the purpose
13  of rendering it usable by a person with a disability; and
14  (D) insulin, blood sugar testing materials, syringes,
15  and needles used by human diabetics.
16  This item (37) is exempt from the provisions of Section
17  3-55.
18  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
19  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
20  70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
21  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
22  (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
23  Sec. 3-10. Rate of tax. Unless otherwise provided in this
24  Section, the tax imposed by this Act is at the rate of 6.25% of
25  the "selling price", as defined in Section 2 of the Service Use

 

 

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1  Tax Act, of the tangible personal property. For the purpose of
2  computing this tax, in no event shall the "selling price" be
3  less than the cost price to the serviceman of the tangible
4  personal property transferred. The selling price of each item
5  of tangible personal property transferred as an incident of a
6  sale of service may be shown as a distinct and separate item on
7  the serviceman's billing to the service customer. If the
8  selling price is not so shown, the selling price of the
9  tangible personal property is deemed to be 50% of the
10  serviceman's entire billing to the service customer. When,
11  however, a serviceman contracts to design, develop, and
12  produce special order machinery or equipment, the tax imposed
13  by this Act shall be based on the serviceman's cost price of
14  the tangible personal property transferred incident to the
15  completion of the contract.
16  Beginning on July 1, 2000 and through December 31, 2000,
17  with respect to motor fuel, as defined in Section 1.1 of the
18  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19  the Use Tax Act, the tax is imposed at the rate of 1.25%.
20  With respect to gasohol, as defined in the Use Tax Act, the
21  tax imposed by this Act shall apply to (i) 70% of the cost
22  price of property transferred as an incident to the sale of
23  service on or after January 1, 1990, and before July 1, 2003,
24  (ii) 80% of the selling price of property transferred as an
25  incident to the sale of service on or after July 1, 2003 and on
26  or before July 1, 2017, and (iii) 100% of the cost price

 

 

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

 

 

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

 

 

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

 

 

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1  consumption and is not otherwise included in this paragraph).
2  Until July 1, 2023, the The tax shall also be imposed at
3  the rate of 1% on prescription and nonprescription medicines,
4  drugs, medical appliances, products classified as Class III
5  medical devices by the United States Food and Drug
6  Administration that are used for cancer treatment pursuant to
7  a prescription, as well as any accessories and components
8  related to those devices, modifications to a motor vehicle for
9  the purpose of rendering it usable by a person with a
10  disability, and insulin, blood sugar testing materials,
11  syringes, and needles used by human diabetics. For the
12  purposes of this Section, until September 1, 2009: the term
13  "soft drinks" means any complete, finished, ready-to-use,
14  non-alcoholic drink, whether carbonated or not, including, but
15  not limited to, soda water, cola, fruit juice, vegetable
16  juice, carbonated water, and all other preparations commonly
17  known as soft drinks of whatever kind or description that are
18  contained in any closed or sealed can, carton, or container,
19  regardless of size; but "soft drinks" does not include coffee,
20  tea, non-carbonated water, infant formula, milk or milk
21  products as defined in the Grade A Pasteurized Milk and Milk
22  Products Act, or drinks containing 50% or more natural fruit
23  or vegetable juice.
24  Notwithstanding any other provisions of this Act,
25  beginning September 1, 2009, "soft drinks" means non-alcoholic
26  beverages that contain natural or artificial sweeteners. "Soft

 

 

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

 

 

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1  drugs" does not include grooming and hygiene products. For
2  purposes of this Section, "grooming and hygiene products"
3  includes, but is not limited to, soaps and cleaning solutions,
4  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5  lotions and screens, unless those products are available by
6  prescription only, regardless of whether the products meet the
7  definition of "over-the-counter-drugs". For the purposes of
8  this paragraph, "over-the-counter-drug" means a drug for human
9  use that contains a label that identifies the product as a drug
10  as required by 21 CFR C.F.R.  201.66. The
11  "over-the-counter-drug" label includes:
12  (A) a A "Drug Facts" panel; or
13  (B) a A statement of the "active ingredient(s)" with a
14  list of those ingredients contained in the compound,
15  substance or preparation.
16  Beginning on January 1, 2014 (the effective date of Public
17  Act 98-122), "prescription and nonprescription medicines and
18  drugs" includes medical cannabis purchased from a registered
19  dispensing organization under the Compassionate Use of Medical
20  Cannabis Program Act.
21  As used in this Section, "adult use cannabis" means
22  cannabis subject to tax under the Cannabis Cultivation
23  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
24  and does not include cannabis subject to tax under the
25  Compassionate Use of Medical Cannabis Program Act.
26  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

 

 

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1  102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2  20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
3  60-25, eff. 4-19-22; revised 6-1-22.)
4  Section 20. The Retailers' Occupation Tax Act is amended
5  by changing Sections 2-5 and 2-10 as follows:
6  (35 ILCS 120/2-5)
7  Sec. 2-5. Exemptions. Gross receipts from proceeds from
8  the sale of the following tangible personal property are
9  exempt from the tax imposed by this Act:
10  (1) Farm chemicals.
11  (2) Farm machinery and equipment, both new and used,
12  including that manufactured on special order, certified by
13  the purchaser to be used primarily for production
14  agriculture or State or federal agricultural programs,
15  including individual replacement parts for the machinery
16  and equipment, including machinery and equipment purchased
17  for lease, and including implements of husbandry defined
18  in Section 1-130 of the Illinois Vehicle Code, farm
19  machinery and agricultural chemical and fertilizer
20  spreaders, and nurse wagons required to be registered
21  under Section 3-809 of the Illinois Vehicle Code, but
22  excluding other motor vehicles required to be registered
23  under the Illinois Vehicle Code. Horticultural polyhouses
24  or hoop houses used for propagating, growing, or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  exempt from the provisions of Section 2-70.
2  (33) A motor vehicle, as that term is defined in
3  Section 1-146 of the Illinois Vehicle Code, that is
4  donated to a corporation, limited liability company,
5  society, association, foundation, or institution that is
6  determined by the Department to be organized and operated
7  exclusively for educational purposes. For purposes of this
8  exemption, "a corporation, limited liability company,
9  society, association, foundation, or institution organized
10  and operated exclusively for educational purposes" means
11  all tax-supported public schools, private schools that
12  offer systematic instruction in useful branches of
13  learning by methods common to public schools and that
14  compare favorably in their scope and intensity with the
15  course of study presented in tax-supported schools, and
16  vocational or technical schools or institutes organized
17  and operated exclusively to provide a course of study of
18  not less than 6 weeks duration and designed to prepare
19  individuals to follow a trade or to pursue a manual,
20  technical, mechanical, industrial, business, or commercial
21  occupation.
22  (34) Beginning January 1, 2000, personal property,
23  including food, purchased through fundraising events for
24  the benefit of a public or private elementary or secondary
25  school, a group of those schools, or one or more school
26  districts if the events are sponsored by an entity

 

 

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

 

 

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

 

 

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1  (38) Beginning on January 1, 2002 and through June 30,
2  2016, tangible personal property purchased from an
3  Illinois retailer by a taxpayer engaged in centralized
4  purchasing activities in Illinois who will, upon receipt
5  of the property in Illinois, temporarily store the
6  property in Illinois (i) for the purpose of subsequently
7  transporting it outside this State for use or consumption
8  thereafter solely outside this State or (ii) for the
9  purpose of being processed, fabricated, or manufactured
10  into, attached to, or incorporated into other tangible
11  personal property to be transported outside this State and
12  thereafter used or consumed solely outside this State. The
13  Director of Revenue shall, pursuant to rules adopted in
14  accordance with the Illinois Administrative Procedure Act,
15  issue a permit to any taxpayer in good standing with the
16  Department who is eligible for the exemption under this
17  paragraph (38). The permit issued under this paragraph
18  (38) shall authorize the holder, to the extent and in the
19  manner specified in the rules adopted under this Act, to
20  purchase tangible personal property from a retailer exempt
21  from the taxes imposed by this Act. Taxpayers shall
22  maintain all necessary books and records to substantiate
23  the use and consumption of all such tangible personal
24  property outside of the State of Illinois.
25  (39) Beginning January 1, 2008, tangible personal
26  property used in the construction or maintenance of a

 

 

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1  community water supply, as defined under Section 3.145 of
2  the Environmental Protection Act, that is operated by a
3  not-for-profit corporation that holds a valid water supply
4  permit issued under Title IV of the Environmental
5  Protection Act. This paragraph is exempt from the
6  provisions of Section 2-70.
7  (40) Beginning January 1, 2010 and continuing through
8  December 31, 2024, materials, parts, equipment,
9  components, and furnishings incorporated into or upon an
10  aircraft as part of the modification, refurbishment,
11  completion, replacement, repair, or maintenance of the
12  aircraft. This exemption includes consumable supplies used
13  in the modification, refurbishment, completion,
14  replacement, repair, and maintenance of aircraft, but
15  excludes any materials, parts, equipment, components, and
16  consumable supplies used in the modification, replacement,
17  repair, and maintenance of aircraft engines or power
18  plants, whether such engines or power plants are installed
19  or uninstalled upon any such aircraft. "Consumable
20  supplies" include, but are not limited to, adhesive, tape,
21  sandpaper, general purpose lubricants, cleaning solution,
22  latex gloves, and protective films. This exemption applies
23  only to the sale of qualifying tangible personal property
24  to persons who modify, refurbish, complete, replace, or
25  maintain an aircraft and who (i) hold an Air Agency
26  Certificate and are empowered to operate an approved

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  pre-packaged as a breast pump kit by the breast pump
2  manufacturer or distributor.
3  (47) (46) Tangible personal property sold by or on
4  behalf of the State Treasurer pursuant to the Revised
5  Uniform Unclaimed Property Act. This item (47) (46) is
6  exempt from the provisions of Section 2-70.
7  (48) Beginning on July 1, 2022, food for human consumption
8  that is to be consumed off the premises where it is sold, as
9  defined in Section 2-10, except excluding alcoholic beverages,
10  food consisting of or infused with adult use cannabis, soft
11  drinks, and food that has been prepared for immediate
12  consumption. This item (48) is exempt from the provisions of
13  Section 2-70.
14  (49) Beginning on July 1, 2023, the following items, as
15  defined in Section 2-10:
16  (A) prescription and nonprescription medicines, drugs,
17  and medical appliances;
18  (B) products classified as Class III medical devices
19  by the United States Food and Drug Administration that are
20  used for cancer treatment pursuant to a prescription, as
21  well as any accessories and components related to those
22  devices;
23  (C) modifications to a motor vehicle for the purpose
24  of rendering it usable by a person with a disability; and
25  (D) insulin, blood sugar testing materials, syringes,
26  and needles used by human diabetics.

 

 

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1  This item (49) is exempt from the provisions of Section
2  2-70.
3  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
5  8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
6  102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
7  eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
8  (35 ILCS 120/2-10)
9  Sec. 2-10. Rate of tax. Unless otherwise provided in this
10  Section, the tax imposed by this Act is at the rate of 6.25% of
11  gross receipts from sales of tangible personal property made
12  in the course of business.
13  Beginning on July 1, 2000 and through December 31, 2000,
14  with respect to motor fuel, as defined in Section 1.1 of the
15  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16  the Use Tax Act, the tax is imposed at the rate of 1.25%.
17  Beginning on August 6, 2010 through August 15, 2010, and
18  beginning again on August 5, 2022 through August 14, 2022,
19  with respect to sales tax holiday items as defined in Section
20  2-8 of this Act, the tax is imposed at the rate of 1.25%.
21  Within 14 days after July 1, 2000 (the effective date of
22  Public Act 91-872) this amendatory Act of the 91st General
23  Assembly, each retailer of motor fuel and gasohol shall cause
24  the following notice to be posted in a prominently visible
25  place on each retail dispensing device that is used to

 

 

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1  dispense motor fuel or gasohol in the State of Illinois: "As of
2  July 1, 2000, the State of Illinois has eliminated the State's
3  share of sales tax on motor fuel and gasohol through December
4  31, 2000. The price on this pump should reflect the
5  elimination of the tax." The notice shall be printed in bold
6  print on a sign that is no smaller than 4 inches by 8 inches.
7  The sign shall be clearly visible to customers. Any retailer
8  who fails to post or maintain a required sign through December
9  31, 2000 is guilty of a petty offense for which the fine shall
10  be $500 per day per each retail premises where a violation
11  occurs.
12  With respect to gasohol, as defined in the Use Tax Act, the
13  tax imposed by this Act applies to (i) 70% of the proceeds of
14  sales made on or after January 1, 1990, and before July 1,
15  2003, (ii) 80% of the proceeds of sales made on or after July
16  1, 2003 and on or before July 1, 2017, and (iii) 100% of the
17  proceeds of sales made thereafter. If, at any time, however,
18  the tax under this Act on sales of gasohol, as defined in the
19  Use Tax Act, is imposed at the rate of 1.25%, then the tax
20  imposed by this Act applies to 100% of the proceeds of sales of
21  gasohol made during that time.
22  With respect to majority blended ethanol fuel, as defined
23  in the Use Tax Act, the tax imposed by this Act does not apply
24  to the proceeds of sales made on or after July 1, 2003 and on
25  or before December 31, 2023 but applies to 100% of the proceeds
26  of sales made thereafter.

 

 

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

 

 

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1  alcoholic beverages, food consisting of or infused with adult
2  use cannabis, soft drinks, and food that has been prepared for
3  immediate consumption), the tax is imposed at the rate of 1%.
4  Beginning July 1, 2022 and until July 1, 2023, with respect to
5  food for human consumption that is to be consumed off the
6  premises where it is sold (other than alcoholic beverages,
7  food consisting of or infused with adult use cannabis, soft
8  drinks, and food that has been prepared for immediate
9  consumption), the tax is imposed at the rate of 0%.
10  Until July 1, 2023, with With respect to prescription and
11  nonprescription medicines, drugs, medical appliances, products
12  classified as Class III medical devices by the United States
13  Food and Drug Administration that are used for cancer
14  treatment pursuant to a prescription, as well as any
15  accessories and components related to those devices,
16  modifications to a motor vehicle for the purpose of rendering
17  it usable by a person with a disability, and insulin, blood
18  sugar testing materials, syringes, and needles used by human
19  diabetics, the tax is imposed at the rate of 1%. For the
20  purposes of this Section, until September 1, 2009: the term
21  "soft drinks" means any complete, finished, ready-to-use,
22  non-alcoholic drink, whether carbonated or not, including, but
23  not limited to, soda water, cola, fruit juice, vegetable
24  juice, carbonated water, and all other preparations commonly
25  known as soft drinks of whatever kind or description that are
26  contained in any closed or sealed bottle, can, carton, or

 

 

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

 

 

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

 

 

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HB3477- 117 -LRB103 27010 HLH 53377 b   HB3477 - 117 - LRB103 27010 HLH 53377 b
  HB3477 - 117 - LRB103 27010 HLH 53377 b
1  includes medical cannabis purchased from a registered
2  dispensing organization under the Compassionate Use of Medical
3  Cannabis Program Act.
4  As used in this Section, "adult use cannabis" means
5  cannabis subject to tax under the Cannabis Cultivation
6  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
7  and does not include cannabis subject to tax under the
8  Compassionate Use of Medical Cannabis Program Act.
9  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
10  102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
11  4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
12  102-700, Article 65, Section 65-10, eff. 4-19-22; revised
13  6-1-22.)
14  Section 99. Effective date. This Act takes effect upon
15  becoming law.

 

 

  HB3477 - 117 - LRB103 27010 HLH 53377 b