Illinois House Bill HB4688 Introduced / Bill

                    103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4688 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 105/3-1035 ILCS 105/3a from Ch. 120, par. 439.3a35 ILCS 110/3-535 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-535 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-535 ILCS 120/2-1035 ILCS 120/2d from Ch. 120, par. 441d Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that food for human consumption that is to be consumed off the premises where it is sold is exempt from the taxes imposed under those Acts. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately. LRB103 36580 HLH 66689 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4688 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:  35 ILCS 105/3-535 ILCS 105/3-1035 ILCS 105/3a from Ch. 120, par. 439.3a35 ILCS 110/3-535 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-535 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-535 ILCS 120/2-1035 ILCS 120/2d from Ch. 120, par. 441d 35 ILCS 105/3-5  35 ILCS 105/3-10  35 ILCS 105/3a from Ch. 120, par. 439.3a 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 120/2d from Ch. 120, par. 441d Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that food for human consumption that is to be consumed off the premises where it is sold is exempt from the taxes imposed under those Acts. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately.     LRB103 36580 HLH 66689 b     LRB103 36580 HLH 66689 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4688 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-535 ILCS 105/3-1035 ILCS 105/3a from Ch. 120, par. 439.3a35 ILCS 110/3-535 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-535 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-535 ILCS 120/2-1035 ILCS 120/2d from Ch. 120, par. 441d 35 ILCS 105/3-5  35 ILCS 105/3-10  35 ILCS 105/3a from Ch. 120, par. 439.3a 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 120/2d from Ch. 120, par. 441d
35 ILCS 105/3-5
35 ILCS 105/3-10
35 ILCS 105/3a from Ch. 120, par. 439.3a
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 120/2d from Ch. 120, par. 441d
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that food for human consumption that is to be consumed off the premises where it is sold is exempt from the taxes imposed under those Acts. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately.
LRB103 36580 HLH 66689 b     LRB103 36580 HLH 66689 b
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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 10. The Use Tax Act is amended by changing
5  Sections 3-5, 3-10, and 3a 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 HB4688 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-535 ILCS 105/3-1035 ILCS 105/3a from Ch. 120, par. 439.3a35 ILCS 110/3-535 ILCS 110/3-10 from Ch. 120, par. 439.33-1035 ILCS 115/3-535 ILCS 115/3-10 from Ch. 120, par. 439.103-1035 ILCS 120/2-535 ILCS 120/2-1035 ILCS 120/2d from Ch. 120, par. 441d 35 ILCS 105/3-5  35 ILCS 105/3-10  35 ILCS 105/3a from Ch. 120, par. 439.3a 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 120/2d from Ch. 120, par. 441d
35 ILCS 105/3-5
35 ILCS 105/3-10
35 ILCS 105/3a from Ch. 120, par. 439.3a
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 120/2d from Ch. 120, par. 441d
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that food for human consumption that is to be consumed off the premises where it is sold is exempt from the taxes imposed under those Acts. Provides that, beginning 30 days after the effective date of the amendatory Act, the cents per gallon rate established by the Department of Revenue for the prepayment of tax by motor fuel retailers may not exceed $0.18 per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends. Provides that the rate of tax imposed under the Acts for motor fuel, gasohol, majority blended ethanol fuel, and biodiesel and biodiesel blends may not exceed that prepayment amount set by the Department of Revenue. Effective immediately.
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A BILL FOR

 

 

35 ILCS 105/3-5
35 ILCS 105/3-10
35 ILCS 105/3a from Ch. 120, par. 439.3a
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 120/2d from Ch. 120, par. 441d



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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  identification and purchases the property using a form of
2  payment where the federal government is the payor. The member
3  of the armed forces must complete, at the point of sale, a form
4  prescribed by the Department of Revenue documenting that the
5  transaction is eligible for the exemption under this
6  paragraph. Retailers must keep the form as documentation of
7  the exemption in their records for a period of not less than 6
8  years. "Armed forces of the United States" means the United
9  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
10  This paragraph is exempt from the provisions of Section 3-90.
11  (44) Beginning on July 1, 2024, food for human consumption
12  that is to be consumed off the premises where it is sold (other
13  than alcoholic beverages, food consisting of or infused with
14  adult use cannabis, soft drinks, and food that has been
15  prepared for immediate consumption). This item (44) is exempt
16  from the provisions of Section 3-90.
17  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
18  Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
19  eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
20  Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
21  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
22  revised 12-12-23.)
23  (35 ILCS 105/3-10)
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  either the selling price or the fair market value, if any, of
2  the tangible personal property. In all cases where property
3  functionally used or consumed is the same as the property that
4  was purchased at retail, then the tax is imposed on the selling
5  price of the property. In all cases where property
6  functionally used or consumed is a by-product or waste product
7  that has been refined, manufactured, or produced from property
8  purchased at retail, then the tax is imposed on the lower of
9  the fair market value, if any, of the specific property so used
10  in this State or on the selling price of the property purchased
11  at retail. For purposes of this Section "fair market value"
12  means the price at which property would change hands between a
13  willing buyer and a willing seller, neither being under any
14  compulsion to buy or sell and both having reasonable knowledge
15  of the relevant facts. The fair market value shall be
16  established by Illinois sales by the taxpayer of the same
17  property as that functionally used or consumed, or if there
18  are no such sales by the taxpayer, then comparable sales or
19  purchases of property of like kind and character in Illinois.
20  Beginning on July 1, 2000 and through December 31, 2000,
21  with respect to motor fuel, as defined in Section 1.1 of the
22  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23  the Use Tax Act, the tax is imposed at the rate of 1.25%.
24  Beginning 30 days after the effective date of this
25  amendatory Act of the 103rd General Assembly, with respect to:
26  motor fuel, as defined in Section 1.1 of the Motor Fuel Tax

 

 

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1  Law; gasohol, as defined in Section 3-40 of this Act; majority
2  blended ethanol fuel; and biodiesel and biodiesel blends, the
3  tax imposed under this Act may not exceed the cents per gallon
4  rate established by the Department under subsection (e) of
5  Section 2d of the Retailers' Occupation Tax Act. With respect
6  to the tax imposed on biodiesel blends and gasohol, the
7  maximum cents per gallon rate shall include the reduction
8  allowed in subsection (e) of Section 2d of the Retailers'
9  Occupation Tax Act.
10  Beginning on August 6, 2010 through August 15, 2010, and
11  beginning again on August 5, 2022 through August 14, 2022,
12  with respect to sales tax holiday items as defined in Section
13  3-6 of this Act, the tax is imposed at the rate of 1.25%.
14  With respect to gasohol, the tax imposed by this Act
15  applies to (i) 70% of the proceeds of sales made on or after
16  January 1, 1990, and before July 1, 2003, (ii) 80% of the
17  proceeds of sales made on or after July 1, 2003 and on or
18  before July 1, 2017, (iii) 100% of the proceeds of sales made
19  after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
20  the proceeds of sales made on or after January 1, 2024 and on
21  or before December 31, 2028, and (v) 100% of the proceeds of
22  sales made after December 31, 2028. If, at any time, however,
23  the tax under this Act on sales of gasohol is imposed at the
24  rate of 1.25%, then the tax imposed by this Act applies to 100%
25  of the proceeds of sales of gasohol made during that time.
26  With respect to mid-range ethanol blends, the tax imposed

 

 

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

 

 

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1  With respect to biodiesel and biodiesel blends with more
2  than 10% but no more than 99% biodiesel, the tax imposed by
3  this Act does not apply to the proceeds of sales made on or
4  after July 1, 2003 and on or before December 31, 2023. On and
5  after January 1, 2024 and on or before December 31, 2030, the
6  taxation of biodiesel, renewable diesel, and biodiesel blends
7  shall be as provided in Section 3-5.1.
8  Until July 1, 2022 and from beginning again on July 1, 2023
9  through June 30, 2024, with respect to food for human
10  consumption that is to be consumed off the premises where it is
11  sold (other than alcoholic beverages, food consisting of or
12  infused with adult use cannabis, soft drinks, and food that
13  has been prepared for immediate consumption), the tax is
14  imposed at the rate of 1%. From Beginning on July 1, 2022
15  through June 30, 2023, and on and after July 1, 2024, and until
16  July 1, 2023, with respect to food for human consumption that
17  is to be consumed off the premises where it is sold (other than
18  alcoholic beverages, food consisting of or infused with adult
19  use cannabis, soft drinks, and food that has been prepared for
20  immediate consumption) is exempt from the tax imposed under
21  this Act , the tax is imposed at the rate of 0%.
22  With respect to prescription and nonprescription
23  medicines, drugs, medical appliances, products classified as
24  Class III medical devices by the United States Food and Drug
25  Administration that are used for cancer treatment pursuant to
26  a prescription, as well as any accessories and components

 

 

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

 

 

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

 

 

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1  this paragraph, "over-the-counter-drug" means a drug for human
2  use that contains a label that identifies the product as a drug
3  as required by 21 CFR 201.66. The "over-the-counter-drug"
4  label includes:
5  (A) a "Drug Facts" panel; or
6  (B) a statement of the "active ingredient(s)" with a
7  list of those ingredients contained in the compound,
8  substance or preparation.
9  Beginning on January 1, 2014 (the effective date of Public
10  Act 98-122), "prescription and nonprescription medicines and
11  drugs" includes medical cannabis purchased from a registered
12  dispensing organization under the Compassionate Use of Medical
13  Cannabis Program Act.
14  As used in this Section, "adult use cannabis" means
15  cannabis subject to tax under the Cannabis Cultivation
16  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
17  and does not include cannabis subject to tax under the
18  Compassionate Use of Medical Cannabis Program Act.
19  If the property that is purchased at retail from a
20  retailer is acquired outside Illinois and used outside
21  Illinois before being brought to Illinois for use here and is
22  taxable under this Act, the "selling price" on which the tax is
23  computed shall be reduced by an amount that represents a
24  reasonable allowance for depreciation for the period of prior
25  out-of-state use.
26  (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,

 

 

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1  Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
2  60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
3  4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
4  (35 ILCS 105/3a) (from Ch. 120, par. 439.3a)
5  Sec. 3a. The tax imposed by the Act shall when collected be
6  stated as a distinct item separate and apart from the selling
7  price of the tangible personal property. However, where it is
8  not possible to state the sales tax separately in situations
9  such as sales from vending machines or sales of liquor by the
10  drink the Department may by rule exempt such sales from this
11  requirement so long as purchasers are notified by a sign that
12  the tax is included in the selling price.
13  In addition, retailers who sell items that would have been
14  taxed at the 1% rate but for the 0% rate imposed under this
15  amendatory Act of the 102nd General Assembly shall, to the
16  extent feasible, include the following statement on any cash
17  register tape, receipt, invoice, or sales ticket issued to
18  customers: "From July 1, 2022 through July 1, 2023, the State
19  of Illinois sales tax on groceries is 0%.". If it is not
20  feasible for the retailer to include the statement on any cash
21  register tape, receipt, invoice, or sales ticket issued to
22  customers, then the retailer shall post the statement on a
23  sign that is clearly visible to customers. The sign shall be no
24  smaller than 4 inches by 8 inches.
25  (Source: P.A. 102-700, eff. 4-19-22.)

 

 

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1  Section 15. The Service Use Tax Act is amended by changing
2  Sections 3-5 and 3-10 as follows:
3  (35 ILCS 110/3-5)
4  Sec. 3-5. Exemptions. Use of the following tangible
5  personal property is exempt from the tax imposed by this Act:
6  (1) Personal property purchased from a corporation,
7  society, association, foundation, institution, or
8  organization, other than a limited liability company, that is
9  organized and operated as a not-for-profit service enterprise
10  for the benefit of persons 65 years of age or older if the
11  personal property was not purchased by the enterprise for the
12  purpose of resale by the enterprise.
13  (2) Personal property purchased by a non-profit Illinois
14  county fair association for use in conducting, operating, or
15  promoting the county fair.
16  (3) Personal property purchased by a 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 purchased from a teacher-sponsored
24  student organization affiliated with an elementary or
25  secondary school 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.
8  Beginning on January 1, 2024, farm machinery and equipment
9  also includes electrical power generation equipment used
10  primarily for production agriculture.
11  This item (7) is exempt from the provisions of Section
12  3-75.
13  (8) Until June 30, 2013, fuel and petroleum products sold
14  to or used by an air common carrier, certified by the carrier
15  to be used for consumption, shipment, or storage in the
16  conduct of its business as an air common carrier, for a flight
17  destined for or returning from a location or locations outside
18  the United States without regard to previous or subsequent
19  domestic stopovers.
20  Beginning July 1, 2013, fuel and petroleum products sold
21  to or used by an air carrier, certified by the carrier to be
22  used for consumption, shipment, or storage in the conduct of
23  its business as an air common carrier, for a flight that (i) is
24  engaged in foreign trade or is engaged in trade between the
25  United States and any of its possessions and (ii) transports
26  at least one individual or package for hire from the city of

 

 

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

 

 

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1  photoprocessing, and including photoprocessing machinery and
2  equipment purchased for lease.
3  (12) Until July 1, 2028, coal and aggregate exploration,
4  mining, off-highway hauling, processing, maintenance, and
5  reclamation equipment, including replacement parts and
6  equipment, and including equipment purchased for lease, but
7  excluding motor vehicles required to be registered under the
8  Illinois Vehicle Code. The changes made to this Section by
9  Public Act 97-767 apply on and after July 1, 2003, but no claim
10  for credit or refund is allowed on or after August 16, 2013
11  (the effective date of Public Act 98-456) for such taxes paid
12  during the period beginning July 1, 2003 and ending on August
13  16, 2013 (the effective date of Public Act 98-456).
14  (13) Semen used for artificial insemination of livestock
15  for direct agricultural production.
16  (14) Horses, or interests in horses, registered with and
17  meeting the requirements of any of the Arabian Horse Club
18  Registry of America, Appaloosa Horse Club, American Quarter
19  Horse Association, United States Trotting Association, or
20  Jockey Club, as appropriate, used for purposes of breeding or
21  racing for prizes. This item (14) is exempt from the
22  provisions of Section 3-75, and the exemption provided for
23  under this item (14) applies for all periods beginning May 30,
24  1995, but no claim for credit or refund is allowed on or after
25  January 1, 2008 (the effective date of Public Act 95-88) for
26  such taxes paid during the period beginning May 30, 2000 and

 

 

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1  ending on January 1, 2008 (the effective date of Public Act
2  95-88).
3  (15) Computers and communications equipment utilized for
4  any hospital purpose and equipment used in the diagnosis,
5  analysis, or treatment of hospital patients purchased by a
6  lessor who leases the equipment, under a lease of one year or
7  longer executed or in effect at the time the lessor would
8  otherwise be subject to the tax imposed by this Act, to a
9  hospital that has been issued an active tax exemption
10  identification number by the Department under Section 1g of
11  the Retailers' Occupation Tax Act. If the equipment is leased
12  in a manner that does not qualify for this exemption or is used
13  in any other non-exempt manner, the lessor shall be liable for
14  the tax imposed under this Act or the Use Tax Act, as the case
15  may be, based on the fair market value of the property at the
16  time the non-qualifying use occurs. No lessor shall collect or
17  attempt to collect an amount (however designated) that
18  purports to reimburse that lessor for the tax imposed by this
19  Act or the Use Tax Act, as the case may be, if the tax has not
20  been paid by the lessor. If a lessor improperly collects any
21  such amount from the lessee, the lessee shall have a legal
22  right to claim a refund of that amount from the lessor. If,
23  however, that amount is not refunded to the lessee for any
24  reason, the lessor is liable to pay that amount to the
25  Department.
26  (16) Personal property purchased by a lessor who leases

 

 

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

 

 

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1  that has been issued a sales tax exemption identification
2  number by the Department that assists victims of the disaster
3  who reside within the declared disaster area.
4  (18) Beginning with taxable years ending on or after
5  December 31, 1995 and ending with taxable years ending on or
6  before December 31, 2004, personal property that is used in
7  the performance of infrastructure repairs in this State,
8  including, but not limited to, municipal roads and streets,
9  access roads, bridges, sidewalks, waste disposal systems,
10  water and sewer line extensions, water distribution and
11  purification facilities, storm water drainage and retention
12  facilities, and sewage treatment facilities, resulting from a
13  State or federally declared disaster in Illinois or bordering
14  Illinois when such repairs are initiated on facilities located
15  in the declared disaster area within 6 months after the
16  disaster.
17  (19) Beginning July 1, 1999, game or game birds purchased
18  at a "game breeding and hunting preserve area" as that term is
19  used in the Wildlife Code. This paragraph is exempt from the
20  provisions of Section 3-75.
21  (20) A motor vehicle, as that term is defined in Section
22  1-146 of the Illinois Vehicle Code, that is donated to a
23  corporation, limited liability company, society, association,
24  foundation, or institution that is determined by the
25  Department to be organized and operated exclusively for
26  educational purposes. For purposes of this exemption, "a

 

 

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

 

 

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1  exempt from the provisions of Section 3-75.
2  (22) Beginning January 1, 2000 and through December 31,
3  2001, new or used automatic vending machines that prepare and
4  serve hot food and beverages, including coffee, soup, and
5  other items, and replacement parts for these machines.
6  Beginning January 1, 2002 and through June 30, 2003, machines
7  and parts for machines used in commercial, coin-operated
8  amusement and vending business if a use or occupation tax is
9  paid on the gross receipts derived from the use of the
10  commercial, coin-operated amusement and vending machines. This
11  paragraph is exempt from the provisions of Section 3-75.
12  (23) Beginning August 23, 2001 and through June 30, 2016,
13  food for human consumption that is to be consumed off the
14  premises where it is sold (other than alcoholic beverages,
15  soft drinks, and food that has been prepared for immediate
16  consumption) and prescription and nonprescription medicines,
17  drugs, medical appliances, and insulin, urine testing
18  materials, syringes, and needles used by diabetics, for human
19  use, when purchased for use by a person receiving medical
20  assistance under Article V of the Illinois Public Aid Code who
21  resides in a licensed long-term care facility, as defined in
22  the Nursing Home Care Act, or in a licensed facility as defined
23  in the ID/DD Community Care Act, the MC/DD Act, or the
24  Specialized Mental Health Rehabilitation Act of 2013.
25  (24) Beginning on August 2, 2001 (the effective date of
26  Public Act 92-227), computers and communications equipment

 

 

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

 

 

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1  executed or in effect at the time the lessor would otherwise be
2  subject to the tax imposed by this Act, to a governmental body
3  that has been issued an active tax exemption identification
4  number by the Department under Section 1g of the Retailers'
5  Occupation Tax Act. If the property is leased in a manner that
6  does not qualify for this exemption or is used in any other
7  nonexempt manner, the lessor shall be liable for the tax
8  imposed under this Act or the Use Tax Act, as the case may be,
9  based on the fair market value of the property at the time the
10  nonqualifying use occurs. No lessor shall collect or attempt
11  to collect an amount (however designated) that purports to
12  reimburse that lessor for the tax imposed by this Act or the
13  Use Tax Act, as the case may be, if the tax has not been paid
14  by the lessor. If a lessor improperly collects any such amount
15  from the lessee, the lessee shall have a legal right to claim a
16  refund of that amount from the lessor. If, however, that
17  amount is not refunded to the lessee for any reason, the lessor
18  is liable to pay that amount to the Department. This paragraph
19  is exempt from the provisions of Section 3-75.
20  (26) Beginning January 1, 2008, tangible personal property
21  used in the construction or maintenance of a community water
22  supply, as defined under Section 3.145 of the Environmental
23  Protection Act, that is operated by a not-for-profit
24  corporation that holds a valid water supply permit issued
25  under Title IV of the Environmental Protection Act. This
26  paragraph is exempt from the provisions of Section 3-75.

 

 

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

 

 

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

 

 

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1  constructing or furnishing a municipal convention hall, but
2  only if the legal title to the municipal convention hall is
3  transferred to the municipality without any further
4  consideration by or on behalf of the municipality at the time
5  of the completion of the municipal convention hall or upon the
6  retirement or redemption of any bonds or other debt
7  instruments issued by the public-facilities corporation in
8  connection with the development of the municipal convention
9  hall. This exemption includes existing public-facilities
10  corporations as provided in Section 11-65-25 of the Illinois
11  Municipal Code. This paragraph is exempt from the provisions
12  of Section 3-75.
13  (29) Beginning January 1, 2017 and through December 31,
14  2026, menstrual pads, tampons, and menstrual cups.
15  (30) Tangible personal property transferred to a purchaser
16  who is exempt from the tax imposed by this Act by operation of
17  federal law. This paragraph is exempt from the provisions of
18  Section 3-75.
19  (31) Qualified tangible personal property used in the
20  construction or operation of a data center that has been
21  granted a certificate of exemption by the Department of
22  Commerce and Economic Opportunity, whether that tangible
23  personal property is purchased by the owner, operator, or
24  tenant of the data center or by a contractor or subcontractor
25  of the owner, operator, or tenant. Data centers that would
26  have qualified for a certificate of exemption prior to January

 

 

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1  1, 2020 had Public Act 101-31 been in effect, may apply for and
2  obtain an exemption for subsequent purchases of computer
3  equipment or enabling software purchased or leased to upgrade,
4  supplement, or replace computer equipment or enabling software
5  purchased or leased in the original investment that would have
6  qualified.
7  The Department of Commerce and Economic Opportunity shall
8  grant a certificate of exemption under this item (31) to
9  qualified data centers as defined by Section 605-1025 of the
10  Department of Commerce and Economic Opportunity Law of the
11  Civil Administrative Code of Illinois.
12  For the purposes of this item (31):
13  "Data center" means a building or a series of
14  buildings rehabilitated or constructed to house working
15  servers in one physical location or multiple sites within
16  the State of Illinois.
17  "Qualified tangible personal property" means:
18  electrical systems and equipment; climate control and
19  chilling equipment and systems; mechanical systems and
20  equipment; monitoring and secure systems; emergency
21  generators; hardware; computers; servers; data storage
22  devices; network connectivity equipment; racks; cabinets;
23  telecommunications cabling infrastructure; raised floor
24  systems; peripheral components or systems; software;
25  mechanical, electrical, or plumbing systems; battery
26  systems; cooling systems and towers; temperature control

 

 

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

 

 

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

 

 

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1  kit that is pre-packaged by the breast pump manufacturer
2  or distributor.
3  "Breast pump kit" means a kit that: (1) contains no
4  more than a breast pump, breast pump collection and
5  storage supplies, a rechargeable battery for operating the
6  breast pump, a breastmilk cooler, bottle stands, ice
7  packs, and a breast pump carrying case; and (2) is
8  pre-packaged as a breast pump kit by the breast pump
9  manufacturer or distributor.
10  (33) Tangible personal property sold by or on behalf of
11  the State Treasurer pursuant to the Revised Uniform Unclaimed
12  Property Act. This item (33) is exempt from the provisions of
13  Section 3-75.
14  (34) Beginning on January 1, 2024, tangible personal
15  property purchased by an active duty member of the armed
16  forces of the United States who presents valid military
17  identification and purchases the property using a form of
18  payment where the federal government is the payor. The member
19  of the armed forces must complete, at the point of sale, a form
20  prescribed by the Department of Revenue documenting that the
21  transaction is eligible for the exemption under this
22  paragraph. Retailers must keep the form as documentation of
23  the exemption in their records for a period of not less than 6
24  years. "Armed forces of the United States" means the United
25  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
26  This paragraph is exempt from the provisions of Section 3-75.

 

 

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1  (35) Beginning on July 1, 2024, food prepared for
2  immediate consumption and transferred incident to a sale of
3  service subject to this Act or the Service Occupation Tax Act
4  by an entity licensed under the Hospital Licensing Act, the
5  Nursing Home Care Act, the Assisted Living and Shared Housing
6  Act, the ID/DD Community Care Act, the MC/DD Act, the
7  Specialized Mental Health Rehabilitation Act of 2013, or the
8  Child Care Act of 1969 or an entity that holds a permit issued
9  pursuant to the Life Care Facilities Act. This item (35) is
10  exempt from the provisions of Section 3-75.
11  (36) Beginning on July 1, 2024, food for human consumption
12  that is to be consumed off the premises where it is sold (other
13  than alcoholic beverages, food consisting of or infused with
14  adult use cannabis, soft drinks, and food that has been
15  prepared for immediate consumption). This item (36) is exempt
16  from the provisions of Section 3-75.
17  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
18  Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
19  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
20  Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
21  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
22  revised 12-12-23.)
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  Beginning 30 days after the effective date of this
10  amendatory Act of the 103rd General Assembly, with respect to:
11  motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
12  Law; gasohol, as defined in Section 3-40 of the Use Tax Act;
13  majority blended ethanol fuel; and biodiesel and biodiesel
14  blends, the tax imposed under this Act may not exceed the cents
15  per gallon rate established by the Department under subsection
16  (e) of Section 2d of the Retailers' Occupation Tax Act. With
17  respect to the tax imposed on biodiesel blends and gasohol,
18  the maximum cents per gallon rate shall include the reduction
19  allowed in subsection (e) of Section 2d of the Retailers'
20  Occupation Tax Act.
21  With respect to gasohol, as defined in the Use Tax Act, the
22  tax imposed by this Act applies to (i) 70% of the selling price
23  of property transferred as an incident to the sale of service
24  on or after January 1, 1990, and before July 1, 2003, (ii) 80%
25  of the selling price of property transferred as an incident to
26  the sale of service on or after July 1, 2003 and on or before

 

 

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1  July 1, 2017, (iii) 100% of the selling price of property
2  transferred as an incident to the sale of service after July 1,
3  2017 and before January 1, 2024, (iv) 90% of the selling price
4  of property transferred as an incident to the sale of service
5  on or after January 1, 2024 and on or before December 31, 2028,
6  and (v) 100% of the selling price of property transferred as an
7  incident to the sale of service after December 31, 2028. If, at
8  any time, however, the tax under this Act on sales of gasohol,
9  as defined in the Use Tax Act, is imposed at the rate of 1.25%,
10  then the tax imposed by this Act applies to 100% of the
11  proceeds of sales of gasohol made during that time.
12  With respect to mid-range ethanol blends, as defined in
13  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
14  applies to (i) 80% of the selling price of property
15  transferred as an incident to the sale of service on or after
16  January 1, 2024 and on or before December 31, 2028 and (ii)
17  100% of the selling price of property transferred as an
18  incident to the sale of service after December 31, 2028. If, at
19  any time, however, the tax under this Act on sales of mid-range
20  ethanol blends is imposed at the rate of 1.25%, then the tax
21  imposed by this Act applies to 100% of the selling price of
22  mid-range ethanol blends transferred as an incident to the
23  sale of service during that time.
24  With respect to majority blended ethanol fuel, as defined
25  in the Use Tax Act, the tax imposed by this Act does not apply
26  to the selling price of property transferred as an incident to

 

 

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1  the sale of service on or after July 1, 2003 and on or before
2  December 31, 2028 but applies to 100% of the selling price
3  thereafter.
4  With respect to biodiesel blends, as defined in the Use
5  Tax Act, with no less than 1% and no more than 10% biodiesel,
6  the tax imposed by this Act applies to (i) 80% of the selling
7  price of property transferred as an incident to the sale of
8  service on or after July 1, 2003 and on or before December 31,
9  2018 and (ii) 100% of the proceeds of the selling price after
10  December 31, 2018 and before January 1, 2024. On and after
11  January 1, 2024 and on or before December 31, 2030, the
12  taxation of biodiesel, renewable diesel, and biodiesel blends
13  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
14  at any time, however, the tax under this Act on sales of
15  biodiesel blends, as defined in the Use Tax Act, with no less
16  than 1% and no more than 10% biodiesel is imposed at the rate
17  of 1.25%, then the tax imposed by this Act applies to 100% of
18  the proceeds of sales of biodiesel blends with no less than 1%
19  and no more than 10% biodiesel made during that time.
20  With respect to biodiesel, as defined in the Use Tax Act,
21  and biodiesel blends, as defined in the Use Tax Act, with more
22  than 10% but no more than 99% biodiesel, the tax imposed by
23  this Act does not apply to the proceeds of the selling price of
24  property transferred as an incident to the sale of service on
25  or after July 1, 2003 and on or before December 31, 2023. On
26  and after January 1, 2024 and on or before December 31, 2030,

 

 

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1  the taxation of biodiesel, renewable diesel, and biodiesel
2  blends shall be as provided in Section 3-5.1 of the Use Tax
3  Act.
4  At the election of any registered serviceman made for each
5  fiscal year, sales of service in which the aggregate annual
6  cost price of tangible personal property transferred as an
7  incident to the sales of service is less than 35%, or 75% in
8  the case of servicemen transferring prescription drugs or
9  servicemen engaged in graphic arts production, of the
10  aggregate annual total gross receipts from all sales of
11  service, the tax imposed by this Act shall be based on the
12  serviceman's cost price of the tangible personal property
13  transferred as an incident to the sale of those services.
14  Until July 1, 2022 and from beginning again on July 1, 2023
15  through June 30, 2024, the tax shall be imposed at the rate of
16  1% on food prepared for immediate consumption and transferred
17  incident to a sale of service subject to this Act or the
18  Service Occupation Tax Act by an entity licensed under the
19  Hospital Licensing Act, the Nursing Home Care Act, the
20  Assisted Living and Shared Housing Act, the ID/DD Community
21  Care Act, the MC/DD Act, the Specialized Mental Health
22  Rehabilitation Act of 2013, or the Child Care Act of 1969, or
23  an entity that holds a permit issued pursuant to the Life Care
24  Facilities Act. Until July 1, 2022 and from beginning again on
25  July 1, 2023 through June 30, 2024, the tax shall also be
26  imposed at the rate of 1% on food for human consumption that is

 

 

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1  to be consumed off the premises where it is sold (other than
2  alcoholic beverages, food consisting of or infused with adult
3  use cannabis, soft drinks, and food that has been prepared for
4  immediate consumption and is not otherwise included in this
5  paragraph).
6  From Beginning on July 1, 2022 through June 30, 2023, and
7  on and after July 1, 2024, and until July 1, 2023, the tax
8  shall be imposed at the rate of 0% on food prepared for
9  immediate consumption and transferred incident to a sale of
10  service subject to this Act or the Service Occupation Tax Act
11  by an entity licensed under the Hospital Licensing Act, the
12  Nursing Home Care Act, the Assisted Living and Shared Housing
13  Act, the ID/DD Community Care Act, the MC/DD Act, the
14  Specialized Mental Health Rehabilitation Act of 2013, or the
15  Child Care Act of 1969, or an entity that holds a permit issued
16  pursuant to the Life Care Facilities Act is exempt from the tax
17  under this Act. From Beginning on July 1, 2022 through June 30,
18  2023, and on and after July 1, 2024, and until July 1, 2023,
19  the tax shall also be imposed at the rate of 0% on food for
20  human consumption that is to be consumed off the premises
21  where it is sold (other than alcoholic beverages, food
22  consisting of or infused with adult use cannabis, soft drinks,
23  and food that has been prepared for immediate consumption and
24  is not otherwise included in this paragraph) is exempt from
25  the tax under this Act.
26  The tax shall also be imposed at the rate of 1% on

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  July 1, 2017, graphic arts machinery and equipment is included
2  in the manufacturing and assembling machinery and equipment
3  exemption under Section 2 of this Act.
4  (6) Personal property sold by a teacher-sponsored student
5  organization affiliated with an elementary or secondary school
6  located in Illinois.
7  (7) Farm machinery and equipment, both new and used,
8  including that manufactured on special order, certified by the
9  purchaser to be used primarily for production agriculture or
10  State or federal agricultural programs, including individual
11  replacement parts for the machinery and equipment, including
12  machinery and equipment purchased for lease, and including
13  implements of husbandry defined in Section 1-130 of the
14  Illinois Vehicle Code, farm machinery and agricultural
15  chemical and fertilizer spreaders, and nurse wagons required
16  to be registered under Section 3-809 of the Illinois Vehicle
17  Code, but excluding other motor vehicles required to be
18  registered under the Illinois Vehicle Code. Horticultural
19  polyhouses or hoop houses used for propagating, growing, or
20  overwintering plants shall be considered farm machinery and
21  equipment under this item (7). Agricultural chemical tender
22  tanks and dry boxes shall include units sold separately from a
23  motor vehicle required to be licensed and units sold mounted
24  on a motor vehicle required to be licensed if the selling price
25  of the tender is separately stated.
26  Farm machinery and equipment shall include precision

 

 

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1  farming equipment that is installed or purchased to be
2  installed on farm machinery and equipment, including, but not
3  limited to, tractors, harvesters, sprayers, planters, seeders,
4  or spreaders. Precision farming equipment includes, but is not
5  limited to, soil testing sensors, computers, monitors,
6  software, global positioning and mapping systems, and other
7  such equipment.
8  Farm machinery and equipment also includes computers,
9  sensors, software, and related equipment used primarily in the
10  computer-assisted operation of production agriculture
11  facilities, equipment, and activities such as, but not limited
12  to, the collection, monitoring, and correlation of animal and
13  crop data for the purpose of formulating animal diets and
14  agricultural chemicals.
15  Beginning on January 1, 2024, farm machinery and equipment
16  also includes electrical power generation equipment used
17  primarily for production agriculture.
18  This item (7) is exempt from the provisions of Section
19  3-55.
20  (8) Until June 30, 2013, fuel and petroleum products sold
21  to or used by an air common carrier, certified by the carrier
22  to be used for consumption, shipment, or storage in the
23  conduct of its business as an air common carrier, for a flight
24  destined for or returning from a location or locations outside
25  the United States without regard to previous or subsequent
26  domestic stopovers.

 

 

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1  Beginning July 1, 2013, fuel and petroleum products sold
2  to or used by an air carrier, certified by the carrier to be
3  used for consumption, shipment, or storage in the conduct of
4  its business as an air common carrier, for a flight that (i) is
5  engaged in foreign trade or is engaged in trade between the
6  United States and any of its possessions and (ii) transports
7  at least one individual or package for hire from the city of
8  origination to the city of final destination on the same
9  aircraft, without regard to a change in the flight number of
10  that aircraft.
11  (9) Proceeds of mandatory service charges separately
12  stated on customers' bills for the purchase and consumption of
13  food and beverages, to the extent that the proceeds of the
14  service charge are in fact turned over as tips or as a
15  substitute for tips to the employees who participate directly
16  in preparing, serving, hosting or cleaning up the food or
17  beverage function with respect to which the service charge is
18  imposed.
19  (10) Until July 1, 2003, oil field exploration, drilling,
20  and production equipment, including (i) rigs and parts of
21  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
22  pipe and tubular goods, including casing and drill strings,
23  (iii) pumps and pump-jack units, (iv) storage tanks and flow
24  lines, (v) any individual replacement part for oil field
25  exploration, drilling, and production equipment, and (vi)
26  machinery and equipment purchased for lease; but excluding

 

 

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1  motor vehicles required to be registered under the Illinois
2  Vehicle Code.
3  (11) Photoprocessing machinery and equipment, including
4  repair and replacement parts, both new and used, including
5  that manufactured on special order, certified by the purchaser
6  to be used primarily for photoprocessing, and including
7  photoprocessing machinery and equipment purchased for lease.
8  (12) Until July 1, 2028, coal and aggregate exploration,
9  mining, off-highway hauling, processing, maintenance, and
10  reclamation equipment, including replacement parts and
11  equipment, and including equipment purchased for lease, but
12  excluding motor vehicles required to be registered under the
13  Illinois Vehicle Code. The changes made to this Section by
14  Public Act 97-767 apply on and after July 1, 2003, but no claim
15  for credit or refund is allowed on or after August 16, 2013
16  (the effective date of Public Act 98-456) for such taxes paid
17  during the period beginning July 1, 2003 and ending on August
18  16, 2013 (the effective date of Public Act 98-456).
19  (13) Beginning January 1, 1992 and through June 30, 2016,
20  food for human consumption that is to be consumed off the
21  premises where it is sold (other than alcoholic beverages,
22  soft drinks and food that has been prepared for immediate
23  consumption) and prescription and non-prescription medicines,
24  drugs, medical appliances, and insulin, urine testing
25  materials, syringes, and needles used by diabetics, for human
26  use, when purchased for use by a person receiving medical

 

 

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1  assistance under Article V of the Illinois Public Aid Code who
2  resides in a licensed long-term care facility, as defined in
3  the Nursing Home Care Act, or in a licensed facility as defined
4  in the ID/DD Community Care Act, the MC/DD Act, or the
5  Specialized Mental Health Rehabilitation Act of 2013.
6  (14) Semen used for artificial insemination of livestock
7  for direct agricultural production.
8  (15) Horses, or interests in horses, registered with and
9  meeting the requirements of any of the Arabian Horse Club
10  Registry of America, Appaloosa Horse Club, American Quarter
11  Horse Association, United States Trotting Association, or
12  Jockey Club, as appropriate, used for purposes of breeding or
13  racing for prizes. This item (15) is exempt from the
14  provisions of Section 3-55, and the exemption provided for
15  under this item (15) applies for all periods beginning May 30,
16  1995, but no claim for credit or refund is allowed on or after
17  January 1, 2008 (the effective date of Public Act 95-88) for
18  such taxes paid during the period beginning May 30, 2000 and
19  ending on January 1, 2008 (the effective date of Public Act
20  95-88).
21  (16) Computers and communications equipment utilized for
22  any hospital purpose and equipment used in the diagnosis,
23  analysis, or treatment of hospital patients sold to a lessor
24  who leases the equipment, under a lease of one year or longer
25  executed or in effect at the time of the purchase, to a
26  hospital that has been issued an active tax exemption

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  98-534 are declarative of existing law. It is the intent of the
2  General Assembly that the exemption under this paragraph (29)
3  applies continuously from January 1, 2010 through December 31,
4  2024; however, no claim for credit or refund is allowed for
5  taxes paid as a result of the disallowance of this exemption on
6  or after January 1, 2015 and prior to February 5, 2020 (the
7  effective date of Public Act 101-629).
8  (30) Beginning January 1, 2017 and through December 31,
9  2026, menstrual pads, tampons, and menstrual cups.
10  (31) Tangible personal property transferred to a purchaser
11  who is exempt from tax by operation of federal law. This
12  paragraph is exempt from the provisions of Section 3-55.
13  (32) Qualified tangible personal property used in the
14  construction or operation of a data center that has been
15  granted a certificate of exemption by the Department of
16  Commerce and Economic Opportunity, whether that tangible
17  personal property is purchased by the owner, operator, or
18  tenant of the data center or by a contractor or subcontractor
19  of the owner, operator, or tenant. Data centers that would
20  have qualified for a certificate of exemption prior to January
21  1, 2020 had Public Act 101-31 been in effect, may apply for and
22  obtain an exemption for subsequent purchases of computer
23  equipment or enabling software purchased or leased to upgrade,
24  supplement, or replace computer equipment or enabling software
25  purchased or leased in the original investment that would have
26  qualified.

 

 

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

 

 

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

 

 

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

 

 

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1  packs, and a breast pump carrying case; and (2) is
2  pre-packaged as a breast pump kit by the breast pump
3  manufacturer or distributor.
4  (34) Tangible personal property sold by or on behalf of
5  the State Treasurer pursuant to the Revised Uniform Unclaimed
6  Property Act. This item (34) is exempt from the provisions of
7  Section 3-55.
8  (35) Beginning on January 1, 2024, tangible personal
9  property purchased by an active duty member of the armed
10  forces of the United States who presents valid military
11  identification and purchases the property using a form of
12  payment where the federal government is the payor. The member
13  of the armed forces must complete, at the point of sale, a form
14  prescribed by the Department of Revenue documenting that the
15  transaction is eligible for the exemption under this
16  paragraph. Retailers must keep the form as documentation of
17  the exemption in their records for a period of not less than 6
18  years. "Armed forces of the United States" means the United
19  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
20  This paragraph is exempt from the provisions of Section 3-55.
21  (36) Beginning on July 1, 2024, food prepared for
22  immediate consumption and transferred incident to a sale of
23  service subject to this Act or the Service Occupation Tax Act
24  by an entity licensed under the Hospital Licensing Act, the
25  Nursing Home Care Act, the Assisted Living and Shared Housing
26  Act, the ID/DD Community Care Act, the MC/DD Act, the

 

 

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1  Specialized Mental Health Rehabilitation Act of 2013, or the
2  Child Care Act of 1969 or an entity that holds a permit issued
3  pursuant to the Life Care Facilities Act. This item (36) is
4  exempt from the provisions of Section 3-55.
5  (37) Beginning on July 1, 2024, food for human consumption
6  that is to be consumed off the premises where it is sold (other
7  than alcoholic beverages, food consisting of or infused with
8  adult use cannabis, soft drinks, and food that has been
9  prepared for immediate consumption) This item (37
  ) is exempt
10  from the provisions of Section 3-55.
11  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
12  Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
13  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
14  Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
15  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
16  revised 12-12-23.)
17  (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
18  Sec. 3-10. Rate of tax. Unless otherwise provided in this
19  Section, the tax imposed by this Act is at the rate of 6.25% of
20  the "selling price", as defined in Section 2 of the Service Use
21  Tax Act, of the tangible personal property. For the purpose of
22  computing this tax, in no event shall the "selling price" be
23  less than the cost price to the serviceman of the tangible
24  personal property transferred. The selling price of each item
25  of tangible personal property transferred as an incident of a

 

 

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1  sale of service may be shown as a distinct and separate item on
2  the serviceman's billing to the service customer. If the
3  selling price is not so shown, the selling price of the
4  tangible personal property is deemed to be 50% of the
5  serviceman's entire billing to the service customer. When,
6  however, a serviceman contracts to design, develop, and
7  produce special order machinery or equipment, the tax imposed
8  by this Act shall be based on the serviceman's cost price of
9  the tangible personal property transferred incident to the
10  completion of the contract.
11  Beginning on July 1, 2000 and through December 31, 2000,
12  with respect to motor fuel, as defined in Section 1.1 of the
13  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14  the Use Tax Act, the tax is imposed at the rate of 1.25%.
15  Beginning 30 days after the effective date of this
16  amendatory Act of the 103rd General Assembly, with respect to:
17  motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
18  Law; gasohol, as defined in Section 3-40 of the Use Tax Act;
19  majority blended ethanol fuel; and biodiesel and biodiesel
20  blends, the tax imposed under this Act may not exceed the cents
21  per gallon rate established by the Department under subsection
22  (e) of Section 2d of the Retailers' Occupation Tax Act. With
23  respect to the tax imposed on biodiesel blends and gasohol,
24  the maximum cents per gallon rate shall include the reduction
25  allowed in subsection (e) of Section 2d of the Retailers'
26  Occupation Tax Act.

 

 

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1  With respect to gasohol, as defined in the Use Tax Act, the
2  tax imposed by this Act shall apply to (i) 70% of the cost
3  price of property transferred as an incident to the sale of
4  service on or after January 1, 1990, and before July 1, 2003,
5  (ii) 80% of the selling price of property transferred as an
6  incident to the sale of service on or after July 1, 2003 and on
7  or before July 1, 2017, (iii) 100% of the selling price of
8  property transferred as an incident to the sale of service
9  after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
10  the selling price of property transferred as an incident to
11  the sale of service on or after January 1, 2024 and on or
12  before December 31, 2028, and (v) 100% of the selling price of
13  property transferred as an incident to the sale of service
14  after December 31, 2028. If, at any time, however, the tax
15  under this Act on sales of gasohol, as defined in the Use Tax
16  Act, is imposed at the rate of 1.25%, then the tax imposed by
17  this Act applies to 100% of the proceeds of sales of gasohol
18  made during that time.
19  With respect to mid-range ethanol blends, as defined in
20  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
21  applies to (i) 80% of the selling price of property
22  transferred as an incident to the sale of service on or after
23  January 1, 2024 and on or before December 31, 2028 and (ii)
24  100% of the selling price of property transferred as an
25  incident to the sale of service after December 31, 2028. If, at
26  any time, however, the tax under this Act on sales of mid-range

 

 

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1  ethanol blends is imposed at the rate of 1.25%, then the tax
2  imposed by this Act applies to 100% of the selling price of
3  mid-range ethanol blends transferred as an incident to the
4  sale of service 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, 2028 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 from beginning again on July 1, 2023
22  through June 30, 2024, the tax shall be imposed at the rate of
23  1% on food prepared for immediate consumption and transferred
24  incident to a sale of service subject to this Act or the
25  Service Use Tax Act by an entity licensed under the Hospital
26  Licensing Act, the Nursing Home Care Act, the Assisted Living

 

 

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1  and Shared Housing Act, the ID/DD Community Care Act, the
2  MC/DD Act, the Specialized Mental Health Rehabilitation Act of
3  2013, or the Child Care Act of 1969, or an entity that holds a
4  permit issued pursuant to the Life Care Facilities Act. Until
5  July 1, 2022 and from beginning again on July 1, 2023 through
6  June 30, 2024, the tax shall also be imposed at the rate of 1%
7  on food for human consumption that is to be consumed off the
8  premises where it is sold (other than alcoholic beverages,
9  food consisting of or infused with adult use cannabis, soft
10  drinks, and food that has been prepared for immediate
11  consumption and is not otherwise included in this paragraph).
12  From Beginning on July 1, 2022 through June 30, 2023, and
13  on and after July 1, 2024, and until July 1, 2023, the tax
14  shall be imposed at the rate of 0% on food prepared for
15  immediate consumption and transferred incident to a sale of
16  service subject to this Act or the Service Use Tax Act by an
17  entity licensed under the Hospital Licensing Act, the Nursing
18  Home Care Act, the Assisted Living and Shared Housing Act, the
19  ID/DD Community Care Act, the MC/DD Act, the Specialized
20  Mental Health Rehabilitation Act of 2013, or the Child Care
21  Act of 1969, or an entity that holds a permit issued pursuant
22  to the Life Care Facilities Act is exempt from the tax imposed
23  by this Act. From Beginning July 1, 2022 through June 30, 2023,
24  and on and after July 1, 2024, and until July 1, 2023, the tax
25  shall also be imposed at the rate of 0% on food for human
26  consumption that is to be consumed off the premises where it is

 

 

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1  sold (other than alcoholic beverages, food consisting of or
2  infused with adult use cannabis, soft drinks, and food that
3  has been prepared for immediate consumption and is not
4  otherwise included in this paragraph) is exempt from the tax
5  imposed by this Act.
6  The tax shall also be imposed at the rate of 1% on
7  prescription and nonprescription medicines, drugs, medical
8  appliances, 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 well
11  as any accessories and components related to those devices,
12  modifications to a motor vehicle for the purpose of rendering
13  it usable by a person with a disability, and insulin, blood
14  sugar testing materials, syringes, and needles used by human
15  diabetics. For the purposes of this Section, until September
16  1, 2009: the term "soft drinks" means any complete, finished,
17  ready-to-use, non-alcoholic drink, whether carbonated or not,
18  including, but not limited to, soda water, cola, fruit juice,
19  vegetable juice, carbonated water, and all other preparations
20  commonly known as soft drinks of whatever kind or description
21  that are contained in any closed or sealed 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 not include beverages that contain milk or milk
5  products, soy, rice or similar milk substitutes, or greater
6  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 201.66. The "over-the-counter-drug"
14  label includes:
15  (A) a "Drug Facts" panel; or
16  (B) 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), "prescription and nonprescription medicines and
21  drugs" includes medical cannabis purchased from a registered
22  dispensing organization under the Compassionate Use of Medical
23  Cannabis Program Act.
24  As used in this Section, "adult use cannabis" means
25  cannabis subject to tax under the Cannabis Cultivation
26  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

 

 

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1  and does not include cannabis subject to tax under the
2  Compassionate Use of Medical Cannabis Program Act.
3  (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
4  102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
5  Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
6  103-154, eff. 6-30-23.)
7  Section 25.
  The Retailers' Occupation Tax Act is amended
8  by changing Sections 2-5 and 2-10 as follows:
9  (35 ILCS 120/2-5)
10  Sec. 2-5. Exemptions. Gross receipts from proceeds from
11  the sale of the following tangible personal property are
12  exempt from the tax imposed by this Act:
13  (1) Farm chemicals.
14  (2) Farm machinery and equipment, both new and used,
15  including that manufactured on special order, certified by
16  the purchaser to be used primarily for production
17  agriculture or State or federal agricultural programs,
18  including individual replacement parts for the machinery
19  and equipment, including machinery and equipment purchased
20  for lease, and including implements of husbandry defined
21  in Section 1-130 of the Illinois Vehicle Code, farm
22  machinery and agricultural chemical and fertilizer
23  spreaders, and nurse wagons required to be registered
24  under Section 3-809 of the Illinois Vehicle Code, but

 

 

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1  excluding other motor vehicles required to be registered
2  under the Illinois Vehicle Code. Horticultural polyhouses
3  or hoop houses used for propagating, growing, or
4  overwintering plants shall be considered farm machinery
5  and equipment under this item (2). Agricultural chemical
6  tender tanks and dry boxes shall include units sold
7  separately from a motor vehicle required to be licensed
8  and units sold mounted on a motor vehicle required to be
9  licensed, if the selling price of the tender is separately
10  stated.
11  Farm machinery and equipment shall include precision
12  farming equipment that is installed or purchased to be
13  installed on farm machinery and equipment including, but
14  not limited to, tractors, harvesters, sprayers, planters,
15  seeders, or spreaders. Precision farming equipment
16  includes, but is not limited to, soil testing sensors,
17  computers, monitors, software, global positioning and
18  mapping systems, and other such equipment.
19  Farm machinery and equipment also includes computers,
20  sensors, software, and related equipment used primarily in
21  the computer-assisted operation of production agriculture
22  facilities, equipment, and activities such as, but not
23  limited to, the collection, monitoring, and correlation of
24  animal and crop data for the purpose of formulating animal
25  diets and agricultural chemicals.
26  Beginning on January 1, 2024, farm machinery and

 

 

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

 

 

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

 

 

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1  (10) Personal property sold by a corporation, society,
2  association, foundation, institution, or organization,
3  other than a limited liability company, that is organized
4  and operated as a not-for-profit service enterprise for
5  the benefit of persons 65 years of age or older if the
6  personal property was not purchased by the enterprise for
7  the purpose of resale by the enterprise.
8  (11) Except as otherwise provided in this Section,
9  personal property sold to a governmental body, to a
10  corporation, society, association, foundation, or
11  institution organized and operated exclusively for
12  charitable, religious, or educational purposes, or to a
13  not-for-profit corporation, society, association,
14  foundation, institution, or organization that has no
15  compensated officers or employees and that is organized
16  and operated primarily for the recreation of persons 55
17  years of age or older. A limited liability company may
18  qualify for the exemption under this paragraph only if the
19  limited liability company is organized and operated
20  exclusively for educational purposes. On and after July 1,
21  1987, however, no entity otherwise eligible for this
22  exemption shall make tax-free purchases unless it has an
23  active identification number issued by the Department.
24  (12) (Blank).
25  (12-5) On and after July 1, 2003 and through June 30,
26  2004, motor vehicles of the second division with a gross

 

 

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

 

 

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

 

 

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1  (15) Proceeds of mandatory service charges separately
2  stated on customers' bills for purchase and consumption of
3  food and beverages, to the extent that the proceeds of the
4  service charge are in fact turned over as tips or as a
5  substitute for tips to the employees who participate
6  directly in preparing, serving, hosting or cleaning up the
7  food or beverage function with respect to which the
8  service charge is imposed.
9  (16) Tangible personal property sold to a purchaser if
10  the purchaser is exempt from use tax by operation of
11  federal law. This paragraph is exempt from the provisions
12  of Section 2-70.
13  (17) Tangible personal property sold to a common
14  carrier by rail or motor that receives the physical
15  possession of the property in Illinois and that transports
16  the property, or shares with another common carrier in the
17  transportation of the property, out of Illinois on a
18  standard uniform bill of lading showing the seller of the
19  property as the shipper or consignor of the property to a
20  destination outside Illinois, for use outside Illinois.
21  (18) Legal tender, currency, medallions, or gold or
22  silver coinage issued by the State of Illinois, the
23  government of the United States of America, or the
24  government of any foreign country, and bullion.
25  (19) Until July 1, 2003, oil field exploration,
26  drilling, and production equipment, including (i) rigs and

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  drainage and retention facilities, and sewage treatment
2  facilities, resulting from a State or federally declared
3  disaster in Illinois or bordering Illinois when such
4  repairs are initiated on facilities located in the
5  declared disaster area within 6 months after the disaster.
6  (32) Beginning July 1, 1999, game or game birds sold
7  at a "game breeding and hunting preserve area" as that
8  term is used in the Wildlife Code. This paragraph is
9  exempt from the provisions of Section 2-70.
10  (33) A motor vehicle, as that term is defined in
11  Section 1-146 of the Illinois Vehicle Code, that is
12  donated to a corporation, limited liability company,
13  society, association, foundation, or institution that is
14  determined by the Department to be organized and operated
15  exclusively for educational purposes. For purposes of this
16  exemption, "a corporation, limited liability company,
17  society, association, foundation, or institution organized
18  and operated exclusively for educational purposes" means
19  all tax-supported public schools, private schools that
20  offer systematic instruction in useful branches of
21  learning by methods common to public schools and that
22  compare favorably in their scope and intensity with the
23  course of study presented in tax-supported schools, and
24  vocational or technical schools or institutes organized
25  and operated exclusively to provide a course of study of
26  not less than 6 weeks duration and designed to prepare

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  Federal Aviation Regulations; and (B) persons who engage
2  in the modification, replacement, repair, and maintenance
3  of aircraft engines or power plants without regard to
4  whether or not those persons meet the qualifications of
5  item (A).
6  The changes made to this paragraph (40) by Public Act
7  98-534 are declarative of existing law. It is the intent
8  of the General Assembly that the exemption under this
9  paragraph (40) applies continuously from January 1, 2010
10  through December 31, 2024; however, no claim for credit or
11  refund is allowed for taxes paid as a result of the
12  disallowance of this exemption on or after January 1, 2015
13  and prior to February 5, 2020 (the effective date of
14  Public Act 101-629).
15  (41) Tangible personal property sold to a
16  public-facilities corporation, as described in Section
17  11-65-10 of the Illinois Municipal Code, for purposes of
18  constructing or furnishing a municipal convention hall,
19  but only if the legal title to the municipal convention
20  hall is transferred to the municipality without any
21  further consideration by or on behalf of the municipality
22  at the time of the completion of the municipal convention
23  hall or upon the retirement or redemption of any bonds or
24  other debt instruments issued by the public-facilities
25  corporation in connection with the development of the
26  municipal convention hall. This exemption includes

 

 

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

 

 

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1  or leased in the original investment that would have
2  qualified.
3  The Department of Commerce and Economic Opportunity
4  shall grant a certificate of exemption under this item
5  (44) to qualified data centers as defined by Section
6  605-1025 of the Department of Commerce and Economic
7  Opportunity Law of the Civil Administrative Code of
8  Illinois.
9  For the purposes of this item (44):
10  "Data center" means a building or a series of
11  buildings rehabilitated or constructed to house
12  working servers in one physical location or multiple
13  sites within 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;
20  cabinets; telecommunications cabling infrastructure;
21  raised floor systems; peripheral components or
22  systems; software; mechanical, electrical, or plumbing
23  systems; battery systems; cooling systems and towers;
24  temperature control systems; other cabling; and other
25  data center infrastructure equipment and systems
26  necessary to operate qualified tangible personal

 

 

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

 

 

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1  remitted by a marketplace facilitator. Marketplace sellers
2  that have properly remitted tax under this Act on such
3  sales may file a claim for credit as provided in Section 6
4  of this Act. No claim is allowed, however, for such taxes
5  for which a credit or refund has been issued to the
6  marketplace facilitator under the Use Tax Act, or for
7  which the marketplace facilitator has filed a claim for
8  credit or refund under the Use Tax Act.
9  (46) Beginning July 1, 2022, breast pumps, breast pump
10  collection and storage supplies, and breast pump kits.
11  This item (46) is exempt from the provisions of Section
12  2-70. As used in this item (46):
13  "Breast pump" means an electrically controlled or
14  manually controlled pump device designed or marketed to be
15  used to express milk from a human breast during lactation,
16  including the pump device and any battery, AC adapter, or
17  other power supply unit that is used to power the pump
18  device and is packaged and sold with the pump device at the
19  time of sale.
20  "Breast pump collection and storage supplies" means
21  items of tangible personal property designed or marketed
22  to be used in conjunction with a breast pump to collect
23  milk expressed from a human breast and to store collected
24  milk until it is ready for consumption.
25  "Breast pump collection and storage supplies"
26  includes, but is not limited to: breast shields and breast

 

 

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

 

 

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1  Unclaimed Property Act. This item (47) is exempt from the
2  provisions of Section 2-70.
3  (48) Beginning on January 1, 2024, tangible personal
4  property purchased by an active duty member of the armed
5  forces of the United States who presents valid military
6  identification and purchases the property using a form of
7  payment where the federal government is the payor. The
8  member of the armed forces must complete, at the point of
9  sale, a form prescribed by the Department of Revenue
10  documenting that the transaction is eligible for the
11  exemption under this paragraph. Retailers must keep the
12  form as documentation of the exemption in their records
13  for a period of not less than 6 years. "Armed forces of the
14  United States" means the United States Army, Navy, Air
15  Force, Marine Corps, or Coast Guard. This paragraph is
16  exempt from the provisions of Section 2-70.
17  (49) Beginning on July 1, 2024, food for human
18  consumption that is to be consumed off the premises where
19  it is sold (other than alcoholic beverages, food
20  consisting of or infused with adult use cannabis, soft
21  drinks, and food that has been prepared for immediate
22  consumption). This item (49) is exempt from the provisions
23  of Section 2-70.
24  (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
25  102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
26  Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.

 

 

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1  5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
2  5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
3  6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
4  12-12-23.)
5  (35 ILCS 120/2-10)
6  Sec. 2-10. 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  gross receipts from sales of tangible personal property made
9  in the course of business.
10  Beginning on July 1, 2000 and through December 31, 2000,
11  with respect to motor fuel, as defined in Section 1.1 of the
12  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13  the Use Tax Act, the tax is imposed at the rate of 1.25%.
14  Beginning 30 days after the effective date of this
15  amendatory Act of the 103rd General Assembly, with respect to:
16  motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
17  Law; gasohol, as defined in Section 3-40 of the Use Tax Act;
18  majority blended ethanol fuel; and biodiesel and biodiesel
19  blends, the tax imposed under this Act may not exceed the cents
20  per gallon rate established by the Department under subsection
21  (e) of Section 2d of this Act. With respect to the tax imposed
22  on biodiesel blends and gasohol, the maximum cents per gallon
23  rate shall include the reduction allowed in subsection (e) of
24  Section 2d of the Retailers' Occupation Tax Act.
25  Beginning on August 6, 2010 through August 15, 2010, and

 

 

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1  beginning again on August 5, 2022 through August 14, 2022,
2  with respect to sales tax holiday items as defined in Section
3  2-8 of this Act, the tax is imposed at the rate of 1.25%.
4  Within 14 days after July 1, 2000 (the effective date of
5  Public Act 91-872), each retailer of motor fuel and gasohol
6  shall cause the following notice to be posted in a prominently
7  visible place on each retail dispensing device that is used to
8  dispense motor fuel or gasohol in the State of Illinois: "As of
9  July 1, 2000, the State of Illinois has eliminated the State's
10  share of sales tax on motor fuel and gasohol through December
11  31, 2000. The price on this pump should reflect the
12  elimination of the tax." The notice shall be printed in bold
13  print on a sign that is no smaller than 4 inches by 8 inches.
14  The sign shall be clearly visible to customers. Any retailer
15  who fails to post or maintain a required sign through December
16  31, 2000 is guilty of a petty offense for which the fine shall
17  be $500 per day per each retail premises where a violation
18  occurs.
19  With respect to gasohol, as defined in the Use Tax Act, the
20  tax imposed by this Act applies to (i) 70% of the proceeds of
21  sales made on or after January 1, 1990, and before July 1,
22  2003, (ii) 80% of the proceeds of sales made on or after July
23  1, 2003 and on or before July 1, 2017, (iii) 100% of the
24  proceeds of sales made after July 1, 2017 and prior to January
25  1, 2024, (iv) 90% of the proceeds of sales made on or after
26  January 1, 2024 and on or before December 31, 2028, and (v)

 

 

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1  100% of the proceeds of sales made after December 31, 2028. If,
2  at any time, however, the tax under this Act on sales of
3  gasohol, as defined in the Use Tax Act, is imposed at the rate
4  of 1.25%, then the tax imposed by this Act applies to 100% of
5  the proceeds of sales of gasohol made during that time.
6  With respect to mid-range ethanol blends, as defined in
7  Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
8  applies to (i) 80% of the proceeds of sales made on or after
9  January 1, 2024 and on or before December 31, 2028 and (ii)
10  100% of the proceeds of sales made after December 31, 2028. If,
11  at any time, however, the tax under this Act on sales of
12  mid-range ethanol blends is imposed at the rate of 1.25%, then
13  the tax imposed by this Act applies to 100% of the proceeds of
14  sales of mid-range ethanol blends made during that time.
15  With respect to majority blended ethanol fuel, as defined
16  in the Use Tax Act, the tax imposed by this Act does not apply
17  to the proceeds of sales made on or after July 1, 2003 and on
18  or before December 31, 2028 but applies to 100% of the proceeds
19  of sales made thereafter.
20  With respect to biodiesel blends, as defined in the Use
21  Tax Act, with no less than 1% and no more than 10% biodiesel,
22  the tax imposed by this Act applies to (i) 80% of the proceeds
23  of sales made on or after July 1, 2003 and on or before
24  December 31, 2018 and (ii) 100% of the proceeds of sales made
25  after December 31, 2018 and before January 1, 2024. On and
26  after January 1, 2024 and on or before December 31, 2030, the

 

 

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1  taxation of biodiesel, renewable diesel, and biodiesel blends
2  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
3  at any time, however, the tax under this Act on sales of
4  biodiesel blends, as defined in the Use Tax Act, with no less
5  than 1% and no more than 10% biodiesel is imposed at the rate
6  of 1.25%, then the tax imposed by this Act applies to 100% of
7  the proceeds of sales of biodiesel blends with no less than 1%
8  and no more than 10% biodiesel made during that time.
9  With respect to biodiesel, as defined in the Use Tax Act,
10  and biodiesel blends, as defined in the Use Tax Act, with more
11  than 10% but no more than 99% biodiesel, the tax imposed by
12  this Act does not apply to the proceeds of sales made on or
13  after July 1, 2003 and on or before December 31, 2023. On and
14  after January 1, 2024 and on or before December 31, 2030, the
15  taxation of biodiesel, renewable diesel, and biodiesel blends
16  shall be as provided in Section 3-5.1 of the Use Tax Act.
17  Until July 1, 2022 and from beginning again on July 1, 2023
18  through June 30, 2024, with respect to food for human
19  consumption that is to be consumed off the premises where it is
20  sold (other than alcoholic beverages, food consisting of or
21  infused with adult use cannabis, soft drinks, and food that
22  has been prepared for immediate consumption), the tax is
23  imposed at the rate of 1%. From Beginning July 1, 2022 through
24  and until July 1, 2023, and on and after July 1, 2024, with
25  respect to food for human consumption that is to be consumed
26  off the premises where it is sold (other than alcoholic

 

 

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

 

 

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

 

 

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

 

 

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1  Compassionate Use of Medical Cannabis Program Act.
2  (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
3  Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
4  60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
5  4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
6  (35 ILCS 120/2d) (from Ch. 120, par. 441d)
7  Sec. 2d. Tax prepayment by motor fuel retailer.
8  (a) Any person engaged in the business of selling motor
9  fuel at retail, as defined in the Motor Fuel Tax Law, and who
10  is not a licensed distributor or supplier, as defined in the
11  Motor Fuel Tax Law, shall prepay to his or her distributor,
12  supplier, or other reseller of motor fuel a portion of the tax
13  imposed by this Act if the distributor, supplier, or other
14  reseller of motor fuel is registered under Section 2a or
15  Section 2c of this Act. The prepayment requirement provided
16  for in this Section does not apply to liquid propane gas.
17  (b) Beginning on July 1, 2000 and through December 31,
18  2000, the Retailers' Occupation Tax paid to the distributor,
19  supplier, or other reseller shall be an amount equal to $0.01
20  per gallon of the motor fuel, except gasohol as defined in
21  Section 2-10 of this Act which shall be an amount equal to
22  $0.01 per gallon, purchased from the distributor, supplier, or
23  other reseller.
24  (c) Before July 1, 2000 and then beginning on January 1,
25  2001 and through June 30, 2003, the Retailers' Occupation Tax

 

 

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1  paid to the distributor, supplier, or other reseller shall be
2  an amount equal to $0.04 per gallon of the motor fuel, except
3  gasohol as defined in Section 2-10 of this Act which shall be
4  an amount equal to $0.03 per gallon, purchased from the
5  distributor, supplier, or other reseller.
6  (d) Beginning July 1, 2003 and through December 31, 2010,
7  the Retailers' Occupation Tax paid to the distributor,
8  supplier, or other reseller shall be an amount equal to $0.06
9  per gallon of the motor fuel, except gasohol as defined in
10  Section 2-10 of this Act which shall be an amount equal to
11  $0.05 per gallon, purchased from the distributor, supplier, or
12  other reseller.
13  (e) Beginning on January 1, 2011 and thereafter, the
14  Retailers' Occupation Tax paid to the distributor, supplier,
15  or other reseller shall be at the rate established by the
16  Department under this subsection. The rate shall be
17  established by the Department on January 1 and July 1 of each
18  year using the average selling price, as defined in Section 1
19  of this Act, per gallon of motor fuel sold in the State during
20  the previous 6 months and multiplying that amount by 6.25% to
21  determine the cents per gallon rate. Beginning 30 days after
22  the effective date of this amendatory Act of the 103rd General
23  Assembly, the cents per gallon rate established by the
24  Department for motor fuel under this subsection may not exceed
25  $0.18 per gallon. Beginning on January 1, 2024 and through
26  December 31, 2028, in the case of gasohol, as defined in

 

 

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1  Section 3-40 of the Use Tax Act, the rate shall be 90% of the
2  rate established by the Department under this subsection for
3  motor fuel. Beginning on January 1, 2024 and through December
4  31, 2028, in the case of mid-range ethanol blends, as defined
5  in Section 3-44.3 of the Use Tax Act, the rate shall be 80% of
6  the rate established by the Department under this subsection
7  for motor fuel. The Department shall provide persons subject
8  to this Section notice of the rate established under this
9  subsection at least 20 days prior to each January 1 and July 1.
10  The Department shall provide persons subject to this Section
11  notice of the rate change required by this amendatory Act of
12  the 103rd General Assembly at least 20 days prior to the date
13  on which that change takes effect. Publication of the
14  established rate on the Department's internet website shall
15  constitute sufficient notice under this Section. The
16  Department may use data derived from independent surveys
17  conducted or accumulated by third parties to determine the
18  average selling price per gallon of motor fuel sold in the
19  State.
20  (f) Any person engaged in the business of selling motor
21  fuel at retail shall be entitled to a credit against tax due
22  under this Act in an amount equal to the tax paid to the
23  distributor, supplier, or other reseller.
24  (g) Every distributor, supplier, or other reseller
25  registered as provided in Section 2a or Section 2c of this Act
26  shall remit the prepaid tax on all motor fuel that is due from

 

 

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1  any person engaged in the business of selling at retail motor
2  fuel with the returns filed under Section 2f or Section 3 of
3  this Act, but the vendors discount provided in Section 3 shall
4  not apply to the amount of prepaid tax that is remitted. Any
5  distributor or supplier who fails to properly collect and
6  remit the tax shall be liable for the tax. For purposes of this
7  Section, the prepaid tax is due on invoiced gallons sold
8  during a month by the 20th day of the following month.
9  (Source: P.A. 103-9, eff. 6-7-23.)

 

 

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