Illinois 2023-2024 Regular Session

Illinois House Bill HB4688 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 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
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4688 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
3	3	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
4	4	35 ILCS 105/3-5
5	5	35 ILCS 105/3-10
6	6	35 ILCS 105/3a from Ch. 120, par. 439.3a
7	7	35 ILCS 110/3-5
8	8	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
9	9	35 ILCS 115/3-5
10	10	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
11	11	35 ILCS 120/2-5
12	12	35 ILCS 120/2-10
13	13	35 ILCS 120/2d from Ch. 120, par. 441d
14	14	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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17	17	A BILL FOR
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19	19	HB4688 LRB103 36580 HLH 66689 b
20	20	1 AN ACT concerning revenue.
21	21	2 Be it enacted by the People of the State of Illinois,
22	22	3 represented in the General Assembly:
23	23	4 Section 10. The Use Tax Act is amended by changing
24	24	5 Sections 3-5, 3-10, and 3a as follows:
25	25	6 (35 ILCS 105/3-5)
26	26	7 Sec. 3-5. Exemptions. Use of the following tangible
27	27	8 personal property is exempt from the tax imposed by this Act:
28	28	9 (1) Personal property purchased from a corporation,
29	29	10 society, association, foundation, institution, or
30	30	11 organization, other than a limited liability company, that is
31	31	12 organized and operated as a not-for-profit service enterprise
32	32	13 for the benefit of persons 65 years of age or older if the
33	33	14 personal property was not purchased by the enterprise for the
34	34	15 purpose of resale by the enterprise.
35	35	16 (2) Personal property purchased by a not-for-profit
36	36	17 Illinois county fair association for use in conducting,
37	37	18 operating, or promoting the county fair.
38	38	19 (3) Personal property purchased by a not-for-profit arts
39	39	20 or cultural organization that establishes, by proof required
40	40	21 by the Department by rule, that it has received an exemption
41	41	22 under Section 501(c)(3) of the Internal Revenue Code and that
42	42	23 is organized and operated primarily for the presentation or
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46	46	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4688 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
47	47	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
48	48	35 ILCS 105/3-5
49	49	35 ILCS 105/3-10
50	50	35 ILCS 105/3a from Ch. 120, par. 439.3a
51	51	35 ILCS 110/3-5
52	52	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
53	53	35 ILCS 115/3-5
54	54	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
55	55	35 ILCS 120/2-5
56	56	35 ILCS 120/2-10
57	57	35 ILCS 120/2d from Ch. 120, par. 441d
58	58	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.
59	59	LRB103 36580 HLH 66689 b LRB103 36580 HLH 66689 b
60	60	LRB103 36580 HLH 66689 b
61	61	A BILL FOR
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67	67	35 ILCS 105/3-5
68	68	35 ILCS 105/3-10
69	69	35 ILCS 105/3a from Ch. 120, par. 439.3a
70	70	35 ILCS 110/3-5
71	71	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
72	72	35 ILCS 115/3-5
73	73	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
74	74	35 ILCS 120/2-5
75	75	35 ILCS 120/2-10
76	76	35 ILCS 120/2d from Ch. 120, par. 441d
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95	95	1 support of arts or cultural programming, activities, or
96	96	2 services. These organizations include, but are not limited to,
97	97	3 music and dramatic arts organizations such as symphony
98	98	4 orchestras and theatrical groups, arts and cultural service
99	99	5 organizations, local arts councils, visual arts organizations,
100	100	6 and media arts organizations. On and after July 1, 2001 (the
101	101	7 effective date of Public Act 92-35), however, an entity
102	102	8 otherwise eligible for this exemption shall not make tax-free
103	103	9 purchases unless it has an active identification number issued
104	104	10 by the Department.
105	105	11 (4) Except as otherwise provided in this Act, personal
106	106	12 property purchased by a governmental body, by a corporation,
107	107	13 society, association, foundation, or institution organized and
108	108	14 operated exclusively for charitable, religious, or educational
109	109	15 purposes, or by a not-for-profit corporation, society,
110	110	16 association, foundation, institution, or organization that has
111	111	17 no compensated officers or employees and that is organized and
112	112	18 operated primarily for the recreation of persons 55 years of
113	113	19 age or older. A limited liability company may qualify for the
114	114	20 exemption under this paragraph only if the limited liability
115	115	21 company is organized and operated exclusively for educational
116	116	22 purposes. On and after July 1, 1987, however, no entity
117	117	23 otherwise eligible for this exemption shall make tax-free
118	118	24 purchases unless it has an active exemption identification
119	119	25 number issued by the Department.
120	120	26 (5) Until July 1, 2003, a passenger car that is a
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131	131	1 replacement vehicle to the extent that the purchase price of
132	132	2 the car is subject to the Replacement Vehicle Tax.
133	133	3 (6) Until July 1, 2003 and beginning again on September 1,
134	134	4 2004 through August 30, 2014, graphic arts machinery and
135	135	5 equipment, including repair and replacement parts, both new
136	136	6 and used, and including that manufactured on special order,
137	137	7 certified by the purchaser to be used primarily for graphic
138	138	8 arts production, and including machinery and equipment
139	139	9 purchased for lease. Equipment includes chemicals or chemicals
140	140	10 acting as catalysts but only if the chemicals or chemicals
141	141	11 acting as catalysts effect a direct and immediate change upon
142	142	12 a graphic arts product. Beginning on July 1, 2017, graphic
143	143	13 arts machinery and equipment is included in the manufacturing
144	144	14 and assembling machinery and equipment exemption under
145	145	15 paragraph (18).
146	146	16 (7) Farm chemicals.
147	147	17 (8) Legal tender, currency, medallions, or gold or silver
148	148	18 coinage issued by the State of Illinois, the government of the
149	149	19 United States of America, or the government of any foreign
150	150	20 country, and bullion.
151	151	21 (9) Personal property purchased from a teacher-sponsored
152	152	22 student organization affiliated with an elementary or
153	153	23 secondary school located in Illinois.
154	154	24 (10) A motor vehicle that is used for automobile renting,
155	155	25 as defined in the Automobile Renting Occupation and Use Tax
156	156	26 Act.
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167	167	1 (11) Farm machinery and equipment, both new and used,
168	168	2 including that manufactured on special order, certified by the
169	169	3 purchaser to be used primarily for production agriculture or
170	170	4 State or federal agricultural programs, including individual
171	171	5 replacement parts for the machinery and equipment, including
172	172	6 machinery and equipment purchased for lease, and including
173	173	7 implements of husbandry defined in Section 1-130 of the
174	174	8 Illinois Vehicle Code, farm machinery and agricultural
175	175	9 chemical and fertilizer spreaders, and nurse wagons required
176	176	10 to be registered under Section 3-809 of the Illinois Vehicle
177	177	11 Code, but excluding other motor vehicles required to be
178	178	12 registered under the Illinois Vehicle Code. Horticultural
179	179	13 polyhouses or hoop houses used for propagating, growing, or
180	180	14 overwintering plants shall be considered farm machinery and
181	181	15 equipment under this item (11). Agricultural chemical tender
182	182	16 tanks and dry boxes shall include units sold separately from a
183	183	17 motor vehicle required to be licensed and units sold mounted
184	184	18 on a motor vehicle required to be licensed if the selling price
185	185	19 of the tender is separately stated.
186	186	20 Farm machinery and equipment shall include precision
187	187	21 farming equipment that is installed or purchased to be
188	188	22 installed on farm machinery and equipment, including, but not
189	189	23 limited to, tractors, harvesters, sprayers, planters, seeders,
190	190	24 or spreaders. Precision farming equipment includes, but is not
191	191	25 limited to, soil testing sensors, computers, monitors,
192	192	26 software, global positioning and mapping systems, and other
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203	203	1 such equipment.
204	204	2 Farm machinery and equipment also includes computers,
205	205	3 sensors, software, and related equipment used primarily in the
206	206	4 computer-assisted operation of production agriculture
207	207	5 facilities, equipment, and activities such as, but not limited
208	208	6 to, the collection, monitoring, and correlation of animal and
209	209	7 crop data for the purpose of formulating animal diets and
210	210	8 agricultural chemicals.
211	211	9 Beginning on January 1, 2024, farm machinery and equipment
212	212	10 also includes electrical power generation equipment used
213	213	11 primarily for production agriculture.
214	214	12 This item (11) is exempt from the provisions of Section
215	215	13 3-90.
216	216	14 (12) Until June 30, 2013, fuel and petroleum products sold
217	217	15 to or used by an air common carrier, certified by the carrier
218	218	16 to be used for consumption, shipment, or storage in the
219	219	17 conduct of its business as an air common carrier, for a flight
220	220	18 destined for or returning from a location or locations outside
221	221	19 the United States without regard to previous or subsequent
222	222	20 domestic stopovers.
223	223	21 Beginning July 1, 2013, fuel and petroleum products sold
224	224	22 to or used by an air carrier, certified by the carrier to be
225	225	23 used for consumption, shipment, or storage in the conduct of
226	226	24 its business as an air common carrier, for a flight that (i) is
227	227	25 engaged in foreign trade or is engaged in trade between the
228	228	26 United States and any of its possessions and (ii) transports
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239	239	1 at least one individual or package for hire from the city of
240	240	2 origination to the city of final destination on the same
241	241	3 aircraft, without regard to a change in the flight number of
242	242	4 that aircraft.
243	243	5 (13) Proceeds of mandatory service charges separately
244	244	6 stated on customers' bills for the purchase and consumption of
245	245	7 food and beverages purchased at retail from a retailer, to the
246	246	8 extent that the proceeds of the service charge are in fact
247	247	9 turned over as tips or as a substitute for tips to the
248	248	10 employees who participate directly in preparing, serving,
249	249	11 hosting or cleaning up the food or beverage function with
250	250	12 respect to which the service charge is imposed.
251	251	13 (14) Until July 1, 2003, oil field exploration, drilling,
252	252	14 and production equipment, including (i) rigs and parts of
253	253	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
254	254	16 pipe and tubular goods, including casing and drill strings,
255	255	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
256	256	18 lines, (v) any individual replacement part for oil field
257	257	19 exploration, drilling, and production equipment, and (vi)
258	258	20 machinery and equipment purchased for lease; but excluding
259	259	21 motor vehicles required to be registered under the Illinois
260	260	22 Vehicle Code.
261	261	23 (15) Photoprocessing machinery and equipment, including
262	262	24 repair and replacement parts, both new and used, including
263	263	25 that manufactured on special order, certified by the purchaser
264	264	26 to be used primarily for photoprocessing, and including
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275	275	1 photoprocessing machinery and equipment purchased for lease.
276	276	2 (16) Until July 1, 2028, coal and aggregate exploration,
277	277	3 mining, off-highway hauling, processing, maintenance, and
278	278	4 reclamation equipment, including replacement parts and
279	279	5 equipment, and including equipment purchased for lease, but
280	280	6 excluding motor vehicles required to be registered under the
281	281	7 Illinois Vehicle Code. The changes made to this Section by
282	282	8 Public Act 97-767 apply on and after July 1, 2003, but no claim
283	283	9 for credit or refund is allowed on or after August 16, 2013
284	284	10 (the effective date of Public Act 98-456) for such taxes paid
285	285	11 during the period beginning July 1, 2003 and ending on August
286	286	12 16, 2013 (the effective date of Public Act 98-456).
287	287	13 (17) Until July 1, 2003, distillation machinery and
288	288	14 equipment, sold as a unit or kit, assembled or installed by the
289	289	15 retailer, certified by the user to be used only for the
290	290	16 production of ethyl alcohol that will be used for consumption
291	291	17 as motor fuel or as a component of motor fuel for the personal
292	292	18 use of the user, and not subject to sale or resale.
293	293	19 (18) Manufacturing and assembling machinery and equipment
294	294	20 used primarily in the process of manufacturing or assembling
295	295	21 tangible personal property for wholesale or retail sale or
296	296	22 lease, whether that sale or lease is made directly by the
297	297	23 manufacturer or by some other person, whether the materials
298	298	24 used in the process are owned by the manufacturer or some other
299	299	25 person, or whether that sale or lease is made apart from or as
300	300	26 an incident to the seller's engaging in the service occupation
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311	311	1 of producing machines, tools, dies, jigs, patterns, gauges, or
312	312	2 other similar items of no commercial value on special order
313	313	3 for a particular purchaser. The exemption provided by this
314	314	4 paragraph (18) includes production related tangible personal
315	315	5 property, as defined in Section 3-50, purchased on or after
316	316	6 July 1, 2019. The exemption provided by this paragraph (18)
317	317	7 does not include machinery and equipment used in (i) the
318	318	8 generation of electricity for wholesale or retail sale; (ii)
319	319	9 the generation or treatment of natural or artificial gas for
320	320	10 wholesale or retail sale that is delivered to customers
321	321	11 through pipes, pipelines, or mains; or (iii) the treatment of
322	322	12 water for wholesale or retail sale that is delivered to
323	323	13 customers through pipes, pipelines, or mains. The provisions
324	324	14 of Public Act 98-583 are declaratory of existing law as to the
325	325	15 meaning and scope of this exemption. Beginning on July 1,
326	326	16 2017, the exemption provided by this paragraph (18) includes,
327	327	17 but is not limited to, graphic arts machinery and equipment,
328	328	18 as defined in paragraph (6) of this Section.
329	329	19 (19) Personal property delivered to a purchaser or
330	330	20 purchaser's donee inside Illinois when the purchase order for
331	331	21 that personal property was received by a florist located
332	332	22 outside Illinois who has a florist located inside Illinois
333	333	23 deliver the personal property.
334	334	24 (20) Semen used for artificial insemination of livestock
335	335	25 for direct agricultural production.
336	336	26 (21) Horses, or interests in horses, registered with and
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347	347	1 meeting the requirements of any of the Arabian Horse Club
348	348	2 Registry of America, Appaloosa Horse Club, American Quarter
349	349	3 Horse Association, United States Trotting Association, or
350	350	4 Jockey Club, as appropriate, used for purposes of breeding or
351	351	5 racing for prizes. This item (21) is exempt from the
352	352	6 provisions of Section 3-90, and the exemption provided for
353	353	7 under this item (21) applies for all periods beginning May 30,
354	354	8 1995, but no claim for credit or refund is allowed on or after
355	355	9 January 1, 2008 for such taxes paid during the period
356	356	10 beginning May 30, 2000 and ending on January 1, 2008.
357	357	11 (22) Computers and communications equipment utilized for
358	358	12 any hospital purpose and equipment used in the diagnosis,
359	359	13 analysis, or treatment of hospital patients purchased by a
360	360	14 lessor who leases the equipment, under a lease of one year or
361	361	15 longer executed or in effect at the time the lessor would
362	362	16 otherwise be subject to the tax imposed by this Act, to a
363	363	17 hospital that has been issued an active tax exemption
364	364	18 identification number by the Department under Section 1g of
365	365	19 the Retailers' Occupation Tax Act. If the equipment is leased
366	366	20 in a manner that does not qualify for this exemption or is used
367	367	21 in any other non-exempt manner, the lessor shall be liable for
368	368	22 the tax imposed under this Act or the Service Use Tax Act, as
369	369	23 the case may be, based on the fair market value of the property
370	370	24 at the time the non-qualifying use occurs. No lessor shall
371	371	25 collect or attempt to collect an amount (however designated)
372	372	26 that purports to reimburse that lessor for the tax imposed by
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383	383	1 this Act or the Service Use Tax Act, as the case may be, if the
384	384	2 tax has not been paid by the lessor. If a lessor improperly
385	385	3 collects any such amount from the lessee, the lessee shall
386	386	4 have a legal right to claim a refund of that amount from the
387	387	5 lessor. If, however, that amount is not refunded to the lessee
388	388	6 for any reason, the lessor is liable to pay that amount to the
389	389	7 Department.
390	390	8 (23) Personal property purchased by a lessor who leases
391	391	9 the property, under a lease of one year or longer executed or
392	392	10 in effect at the time the lessor would otherwise be subject to
393	393	11 the tax imposed by this Act, to a governmental body that has
394	394	12 been issued an active sales tax exemption identification
395	395	13 number by the Department under Section 1g of the Retailers'
396	396	14 Occupation Tax Act. If the property is leased in a manner that
397	397	15 does not qualify for this exemption or used in any other
398	398	16 non-exempt manner, the lessor shall be liable for the tax
399	399	17 imposed under this Act or the Service Use Tax Act, as the case
400	400	18 may be, based on the fair market value of the property at the
401	401	19 time the non-qualifying use occurs. No lessor shall collect or
402	402	20 attempt to collect an amount (however designated) that
403	403	21 purports to reimburse that lessor for the tax imposed by this
404	404	22 Act or the Service Use Tax Act, as the case may be, if the tax
405	405	23 has not been paid by the lessor. If a lessor improperly
406	406	24 collects any such amount from the lessee, the lessee shall
407	407	25 have a legal right to claim a refund of that amount from the
408	408	26 lessor. If, however, that amount is not refunded to the lessee
409	409
410	410
411	411
412	412
413	413
414	414	HB4688 - 10 - LRB103 36580 HLH 66689 b
415	415
416	416
417	417	HB4688- 11 -LRB103 36580 HLH 66689 b HB4688 - 11 - LRB103 36580 HLH 66689 b
418	418	HB4688 - 11 - LRB103 36580 HLH 66689 b
419	419	1 for any reason, the lessor is liable to pay that amount to the
420	420	2 Department.
421	421	3 (24) Beginning with taxable years ending on or after
422	422	4 December 31, 1995 and ending with taxable years ending on or
423	423	5 before December 31, 2004, personal property that is donated
424	424	6 for disaster relief to be used in a State or federally declared
425	425	7 disaster area in Illinois or bordering Illinois by a
426	426	8 manufacturer or retailer that is registered in this State to a
427	427	9 corporation, society, association, foundation, or institution
428	428	10 that has been issued a sales tax exemption identification
429	429	11 number by the Department that assists victims of the disaster
430	430	12 who reside within the declared disaster area.
431	431	13 (25) Beginning with taxable years ending on or after
432	432	14 December 31, 1995 and ending with taxable years ending on or
433	433	15 before December 31, 2004, personal property that is used in
434	434	16 the performance of infrastructure repairs in this State,
435	435	17 including, but not limited to, municipal roads and streets,
436	436	18 access roads, bridges, sidewalks, waste disposal systems,
437	437	19 water and sewer line extensions, water distribution and
438	438	20 purification facilities, storm water drainage and retention
439	439	21 facilities, and sewage treatment facilities, resulting from a
440	440	22 State or federally declared disaster in Illinois or bordering
441	441	23 Illinois when such repairs are initiated on facilities located
442	442	24 in the declared disaster area within 6 months after the
443	443	25 disaster.
444	444	26 (26) Beginning July 1, 1999, game or game birds purchased
445	445
446	446
447	447
448	448
449	449
450	450	HB4688 - 11 - LRB103 36580 HLH 66689 b
451	451
452	452
453	453	HB4688- 12 -LRB103 36580 HLH 66689 b HB4688 - 12 - LRB103 36580 HLH 66689 b
454	454	HB4688 - 12 - LRB103 36580 HLH 66689 b
455	455	1 at a "game breeding and hunting preserve area" as that term is
456	456	2 used in the Wildlife Code. This paragraph is exempt from the
457	457	3 provisions of Section 3-90.
458	458	4 (27) A motor vehicle, as that term is defined in Section
459	459	5 1-146 of the Illinois Vehicle Code, that is donated to a
460	460	6 corporation, limited liability company, society, association,
461	461	7 foundation, or institution that is determined by the
462	462	8 Department to be organized and operated exclusively for
463	463	9 educational purposes. For purposes of this exemption, "a
464	464	10 corporation, limited liability company, society, association,
465	465	11 foundation, or institution organized and operated exclusively
466	466	12 for educational purposes" means all tax-supported public
467	467	13 schools, private schools that offer systematic instruction in
468	468	14 useful branches of learning by methods common to public
469	469	15 schools and that compare favorably in their scope and
470	470	16 intensity with the course of study presented in tax-supported
471	471	17 schools, and vocational or technical schools or institutes
472	472	18 organized and operated exclusively to provide a course of
473	473	19 study of not less than 6 weeks duration and designed to prepare
474	474	20 individuals to follow a trade or to pursue a manual,
475	475	21 technical, mechanical, industrial, business, or commercial
476	476	22 occupation.
477	477	23 (28) Beginning January 1, 2000, personal property,
478	478	24 including food, purchased through fundraising events for the
479	479	25 benefit of a public or private elementary or secondary school,
480	480	26 a group of those schools, or one or more school districts if
481	481
482	482
483	483
484	484
485	485
486	486	HB4688 - 12 - LRB103 36580 HLH 66689 b
487	487
488	488
489	489	HB4688- 13 -LRB103 36580 HLH 66689 b HB4688 - 13 - LRB103 36580 HLH 66689 b
490	490	HB4688 - 13 - LRB103 36580 HLH 66689 b
491	491	1 the events are sponsored by an entity recognized by the school
492	492	2 district that consists primarily of volunteers and includes
493	493	3 parents and teachers of the school children. This paragraph
494	494	4 does not apply to fundraising events (i) for the benefit of
495	495	5 private home instruction or (ii) for which the fundraising
496	496	6 entity purchases the personal property sold at the events from
497	497	7 another individual or entity that sold the property for the
498	498	8 purpose of resale by the fundraising entity and that profits
499	499	9 from the sale to the fundraising entity. This paragraph is
500	500	10 exempt from the provisions of Section 3-90.
501	501	11 (29) Beginning January 1, 2000 and through December 31,
502	502	12 2001, new or used automatic vending machines that prepare and
503	503	13 serve hot food and beverages, including coffee, soup, and
504	504	14 other items, and replacement parts for these machines.
505	505	15 Beginning January 1, 2002 and through June 30, 2003, machines
506	506	16 and parts for machines used in commercial, coin-operated
507	507	17 amusement and vending business if a use or occupation tax is
508	508	18 paid on the gross receipts derived from the use of the
509	509	19 commercial, coin-operated amusement and vending machines. This
510	510	20 paragraph is exempt from the provisions of Section 3-90.
511	511	21 (30) Beginning January 1, 2001 and through June 30, 2016,
512	512	22 food for human consumption that is to be consumed off the
513	513	23 premises where it is sold (other than alcoholic beverages,
514	514	24 soft drinks, and food that has been prepared for immediate
515	515	25 consumption) and prescription and nonprescription medicines,
516	516	26 drugs, medical appliances, and insulin, urine testing
517	517
518	518
519	519
520	520
521	521
522	522	HB4688 - 13 - LRB103 36580 HLH 66689 b
523	523
524	524
525	525	HB4688- 14 -LRB103 36580 HLH 66689 b HB4688 - 14 - LRB103 36580 HLH 66689 b
526	526	HB4688 - 14 - LRB103 36580 HLH 66689 b
527	527	1 materials, syringes, and needles used by diabetics, for human
528	528	2 use, when purchased for use by a person receiving medical
529	529	3 assistance under Article V of the Illinois Public Aid Code who
530	530	4 resides in a licensed long-term care facility, as defined in
531	531	5 the Nursing Home Care Act, or in a licensed facility as defined
532	532	6 in the ID/DD Community Care Act, the MC/DD Act, or the
533	533	7 Specialized Mental Health Rehabilitation Act of 2013.
534	534	8 (31) Beginning on August 2, 2001 (the effective date of
535	535	9 Public Act 92-227), computers and communications equipment
536	536	10 utilized for any hospital purpose and equipment used in the
537	537	11 diagnosis, analysis, or treatment of hospital patients
538	538	12 purchased by a lessor who leases the equipment, under a lease
539	539	13 of one year or longer executed or in effect at the time the
540	540	14 lessor would otherwise be subject to the tax imposed by this
541	541	15 Act, to a hospital that has been issued an active tax exemption
542	542	16 identification number by the Department under Section 1g of
543	543	17 the Retailers' Occupation Tax Act. If the equipment is leased
544	544	18 in a manner that does not qualify for this exemption or is used
545	545	19 in any other nonexempt manner, the lessor shall be liable for
546	546	20 the tax imposed under this Act or the Service Use Tax Act, as
547	547	21 the case may be, based on the fair market value of the property
548	548	22 at the time the nonqualifying use occurs. No lessor shall
549	549	23 collect or attempt to collect an amount (however designated)
550	550	24 that purports to reimburse that lessor for the tax imposed by
551	551	25 this Act or the Service Use Tax Act, as the case may be, if the
552	552	26 tax has not been paid by the lessor. If a lessor improperly
553	553
554	554
555	555
556	556
557	557
558	558	HB4688 - 14 - LRB103 36580 HLH 66689 b
559	559
560	560
561	561	HB4688- 15 -LRB103 36580 HLH 66689 b HB4688 - 15 - LRB103 36580 HLH 66689 b
562	562	HB4688 - 15 - LRB103 36580 HLH 66689 b
563	563	1 collects any such amount from the lessee, the lessee shall
564	564	2 have a legal right to claim a refund of that amount from the
565	565	3 lessor. If, however, that amount is not refunded to the lessee
566	566	4 for any reason, the lessor is liable to pay that amount to the
567	567	5 Department. This paragraph is exempt from the provisions of
568	568	6 Section 3-90.
569	569	7 (32) Beginning on August 2, 2001 (the effective date of
570	570	8 Public Act 92-227), personal property purchased by a lessor
571	571	9 who leases the property, under a lease of one year or longer
572	572	10 executed or in effect at the time the lessor would otherwise be
573	573	11 subject to the tax imposed by this Act, to a governmental body
574	574	12 that has been issued an active sales tax exemption
575	575	13 identification number by the Department under Section 1g of
576	576	14 the Retailers' Occupation Tax Act. If the property is leased
577	577	15 in a manner that does not qualify for this exemption or used in
578	578	16 any other nonexempt manner, the lessor shall be liable for the
579	579	17 tax imposed under this Act or the Service Use Tax Act, as the
580	580	18 case may be, based on the fair market value of the property at
581	581	19 the time the nonqualifying use occurs. No lessor shall collect
582	582	20 or attempt to collect an amount (however designated) that
583	583	21 purports to reimburse that lessor for the tax imposed by this
584	584	22 Act or the Service Use Tax Act, as the case may be, if the tax
585	585	23 has not been paid by the lessor. If a lessor improperly
586	586	24 collects any such amount from the lessee, the lessee shall
587	587	25 have a legal right to claim a refund of that amount from the
588	588	26 lessor. If, however, that amount is not refunded to the lessee
589	589
590	590
591	591
592	592
593	593
594	594	HB4688 - 15 - LRB103 36580 HLH 66689 b
595	595
596	596
597	597	HB4688- 16 -LRB103 36580 HLH 66689 b HB4688 - 16 - LRB103 36580 HLH 66689 b
598	598	HB4688 - 16 - LRB103 36580 HLH 66689 b
599	599	1 for any reason, the lessor is liable to pay that amount to the
600	600	2 Department. This paragraph is exempt from the provisions of
601	601	3 Section 3-90.
602	602	4 (33) On and after July 1, 2003 and through June 30, 2004,
603	603	5 the use in this State of motor vehicles of the second division
604	604	6 with a gross vehicle weight in excess of 8,000 pounds and that
605	605	7 are subject to the commercial distribution fee imposed under
606	606	8 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
607	607	9 July 1, 2004 and through June 30, 2005, the use in this State
608	608	10 of motor vehicles of the second division: (i) with a gross
609	609	11 vehicle weight rating in excess of 8,000 pounds; (ii) that are
610	610	12 subject to the commercial distribution fee imposed under
611	611	13 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
612	612	14 are primarily used for commercial purposes. Through June 30,
613	613	15 2005, this exemption applies to repair and replacement parts
614	614	16 added after the initial purchase of such a motor vehicle if
615	615	17 that motor vehicle is used in a manner that would qualify for
616	616	18 the rolling stock exemption otherwise provided for in this
617	617	19 Act. For purposes of this paragraph, the term "used for
618	618	20 commercial purposes" means the transportation of persons or
619	619	21 property in furtherance of any commercial or industrial
620	620	22 enterprise, whether for-hire or not.
621	621	23 (34) Beginning January 1, 2008, tangible personal property
622	622	24 used in the construction or maintenance of a community water
623	623	25 supply, as defined under Section 3.145 of the Environmental
624	624	26 Protection Act, that is operated by a not-for-profit
625	625
626	626
627	627
628	628
629	629
630	630	HB4688 - 16 - LRB103 36580 HLH 66689 b
631	631
632	632
633	633	HB4688- 17 -LRB103 36580 HLH 66689 b HB4688 - 17 - LRB103 36580 HLH 66689 b
634	634	HB4688 - 17 - LRB103 36580 HLH 66689 b
635	635	1 corporation that holds a valid water supply permit issued
636	636	2 under Title IV of the Environmental Protection Act. This
637	637	3 paragraph is exempt from the provisions of Section 3-90.
638	638	4 (35) Beginning January 1, 2010 and continuing through
639	639	5 December 31, 2029, materials, parts, equipment, components,
640	640	6 and furnishings incorporated into or upon an aircraft as part
641	641	7 of the modification, refurbishment, completion, replacement,
642	642	8 repair, or maintenance of the aircraft. This exemption
643	643	9 includes consumable supplies used in the modification,
644	644	10 refurbishment, completion, replacement, repair, and
645	645	11 maintenance of aircraft. However, until January 1, 2024, this
646	646	12 exemption excludes any materials, parts, equipment,
647	647	13 components, and consumable supplies used in the modification,
648	648	14 replacement, repair, and maintenance of aircraft engines or
649	649	15 power plants, whether such engines or power plants are
650	650	16 installed or uninstalled upon any such aircraft. "Consumable
651	651	17 supplies" include, but are not limited to, adhesive, tape,
652	652	18 sandpaper, general purpose lubricants, cleaning solution,
653	653	19 latex gloves, and protective films.
654	654	20 Beginning January 1, 2010 and continuing through December
655	655	21 31, 2023, this exemption applies only to the use of qualifying
656	656	22 tangible personal property by persons who modify, refurbish,
657	657	23 complete, repair, replace, or maintain aircraft and who (i)
658	658	24 hold an Air Agency Certificate and are empowered to operate an
659	659	25 approved repair station by the Federal Aviation
660	660	26 Administration, (ii) have a Class IV Rating, and (iii) conduct
661	661
662	662
663	663
664	664
665	665
666	666	HB4688 - 17 - LRB103 36580 HLH 66689 b
667	667
668	668
669	669	HB4688- 18 -LRB103 36580 HLH 66689 b HB4688 - 18 - LRB103 36580 HLH 66689 b
670	670	HB4688 - 18 - LRB103 36580 HLH 66689 b
671	671	1 operations in accordance with Part 145 of the Federal Aviation
672	672	2 Regulations. From January 1, 2024 through December 31, 2029,
673	673	3 this exemption applies only to the use of qualifying tangible
674	674	4 personal property by: (A) persons who modify, refurbish,
675	675	5 complete, repair, replace, or maintain aircraft and who (i)
676	676	6 hold an Air Agency Certificate and are empowered to operate an
677	677	7 approved repair station by the Federal Aviation
678	678	8 Administration, (ii) have a Class IV Rating, and (iii) conduct
679	679	9 operations in accordance with Part 145 of the Federal Aviation
680	680	10 Regulations; and (B) persons who engage in the modification,
681	681	11 replacement, repair, and maintenance of aircraft engines or
682	682	12 power plants without regard to whether or not those persons
683	683	13 meet the qualifications of item (A).
684	684	14 The exemption does not include aircraft operated by a
685	685	15 commercial air carrier providing scheduled passenger air
686	686	16 service pursuant to authority issued under Part 121 or Part
687	687	17 129 of the Federal Aviation Regulations. The changes made to
688	688	18 this paragraph (35) by Public Act 98-534 are declarative of
689	689	19 existing law. It is the intent of the General Assembly that the
690	690	20 exemption under this paragraph (35) applies continuously from
691	691	21 January 1, 2010 through December 31, 2024; however, no claim
692	692	22 for credit or refund is allowed for taxes paid as a result of
693	693	23 the disallowance of this exemption on or after January 1, 2015
694	694	24 and prior to February 5, 2020 (the effective date of Public Act
695	695	25 101-629).
696	696	26 (36) Tangible personal property purchased by a
697	697
698	698
699	699
700	700
701	701
702	702	HB4688 - 18 - LRB103 36580 HLH 66689 b
703	703
704	704
705	705	HB4688- 19 -LRB103 36580 HLH 66689 b HB4688 - 19 - LRB103 36580 HLH 66689 b
706	706	HB4688 - 19 - LRB103 36580 HLH 66689 b
707	707	1 public-facilities corporation, as described in Section
708	708	2 11-65-10 of the Illinois Municipal Code, for purposes of
709	709	3 constructing or furnishing a municipal convention hall, but
710	710	4 only if the legal title to the municipal convention hall is
711	711	5 transferred to the municipality without any further
712	712	6 consideration by or on behalf of the municipality at the time
713	713	7 of the completion of the municipal convention hall or upon the
714	714	8 retirement or redemption of any bonds or other debt
715	715	9 instruments issued by the public-facilities corporation in
716	716	10 connection with the development of the municipal convention
717	717	11 hall. This exemption includes existing public-facilities
718	718	12 corporations as provided in Section 11-65-25 of the Illinois
719	719	13 Municipal Code. This paragraph is exempt from the provisions
720	720	14 of Section 3-90.
721	721	15 (37) Beginning January 1, 2017 and through December 31,
722	722	16 2026, menstrual pads, tampons, and menstrual cups.
723	723	17 (38) Merchandise that is subject to the Rental Purchase
724	724	18 Agreement Occupation and Use Tax. The purchaser must certify
725	725	19 that the item is purchased to be rented subject to a
726	726	20 rental-purchase rental purchase agreement, as defined in the
727	727	21 Rental-Purchase Rental Purchase Agreement Act, and provide
728	728	22 proof of registration under the Rental Purchase Agreement
729	729	23 Occupation and Use Tax Act. This paragraph is exempt from the
730	730	24 provisions of Section 3-90.
731	731	25 (39) Tangible personal property purchased by a purchaser
732	732	26 who is exempt from the tax imposed by this Act by operation of
733	733
734	734
735	735
736	736
737	737
738	738	HB4688 - 19 - LRB103 36580 HLH 66689 b
739	739
740	740
741	741	HB4688- 20 -LRB103 36580 HLH 66689 b HB4688 - 20 - LRB103 36580 HLH 66689 b
742	742	HB4688 - 20 - LRB103 36580 HLH 66689 b
743	743	1 federal law. This paragraph is exempt from the provisions of
744	744	2 Section 3-90.
745	745	3 (40) Qualified tangible personal property used in the
746	746	4 construction or operation of a data center that has been
747	747	5 granted a certificate of exemption by the Department of
748	748	6 Commerce and Economic Opportunity, whether that tangible
749	749	7 personal property is purchased by the owner, operator, or
750	750	8 tenant of the data center or by a contractor or subcontractor
751	751	9 of the owner, operator, or tenant. Data centers that would
752	752	10 have qualified for a certificate of exemption prior to January
753	753	11 1, 2020 had Public Act 101-31 been in effect may apply for and
754	754	12 obtain an exemption for subsequent purchases of computer
755	755	13 equipment or enabling software purchased or leased to upgrade,
756	756	14 supplement, or replace computer equipment or enabling software
757	757	15 purchased or leased in the original investment that would have
758	758	16 qualified.
759	759	17 The Department of Commerce and Economic Opportunity shall
760	760	18 grant a certificate of exemption under this item (40) to
761	761	19 qualified data centers as defined by Section 605-1025 of the
762	762	20 Department of Commerce and Economic Opportunity Law of the
763	763	21 Civil Administrative Code of Illinois.
764	764	22 For the purposes of this item (40):
765	765	23 "Data center" means a building or a series of
766	766	24 buildings rehabilitated or constructed to house working
767	767	25 servers in one physical location or multiple sites within
768	768	26 the State of Illinois.
769	769
770	770
771	771
772	772
773	773
774	774	HB4688 - 20 - LRB103 36580 HLH 66689 b
775	775
776	776
777	777	HB4688- 21 -LRB103 36580 HLH 66689 b HB4688 - 21 - LRB103 36580 HLH 66689 b
778	778	HB4688 - 21 - LRB103 36580 HLH 66689 b
779	779	1 "Qualified tangible personal property" means:
780	780	2 electrical systems and equipment; climate control and
781	781	3 chilling equipment and systems; mechanical systems and
782	782	4 equipment; monitoring and secure systems; emergency
783	783	5 generators; hardware; computers; servers; data storage
784	784	6 devices; network connectivity equipment; racks; cabinets;
785	785	7 telecommunications cabling infrastructure; raised floor
786	786	8 systems; peripheral components or systems; software;
787	787	9 mechanical, electrical, or plumbing systems; battery
788	788	10 systems; cooling systems and towers; temperature control
789	789	11 systems; other cabling; and other data center
790	790	12 infrastructure equipment and systems necessary to operate
791	791	13 qualified tangible personal property, including fixtures;
792	792	14 and component parts of any of the foregoing, including
793	793	15 installation, maintenance, repair, refurbishment, and
794	794	16 replacement of qualified tangible personal property to
795	795	17 generate, transform, transmit, distribute, or manage
796	796	18 electricity necessary to operate qualified tangible
797	797	19 personal property; and all other tangible personal
798	798	20 property that is essential to the operations of a computer
799	799	21 data center. The term "qualified tangible personal
800	800	22 property" also includes building materials physically
801	801	23 incorporated into in to the qualifying data center. To
802	802	24 document the exemption allowed under this Section, the
803	803	25 retailer must obtain from the purchaser a copy of the
804	804	26 certificate of eligibility issued by the Department of
805	805
806	806
807	807
808	808
809	809
810	810	HB4688 - 21 - LRB103 36580 HLH 66689 b
811	811
812	812
813	813	HB4688- 22 -LRB103 36580 HLH 66689 b HB4688 - 22 - LRB103 36580 HLH 66689 b
814	814	HB4688 - 22 - LRB103 36580 HLH 66689 b
815	815	1 Commerce and Economic Opportunity.
816	816	2 This item (40) is exempt from the provisions of Section
817	817	3 3-90.
818	818	4 (41) Beginning July 1, 2022, breast pumps, breast pump
819	819	5 collection and storage supplies, and breast pump kits. This
820	820	6 item (41) is exempt from the provisions of Section 3-90. As
821	821	7 used in this item (41):
822	822	8 "Breast pump" means an electrically controlled or
823	823	9 manually controlled pump device designed or marketed to be
824	824	10 used to express milk from a human breast during lactation,
825	825	11 including the pump device and any battery, AC adapter, or
826	826	12 other power supply unit that is used to power the pump
827	827	13 device and is packaged and sold with the pump device at the
828	828	14 time of sale.
829	829	15 "Breast pump collection and storage supplies" means
830	830	16 items of tangible personal property designed or marketed
831	831	17 to be used in conjunction with a breast pump to collect
832	832	18 milk expressed from a human breast and to store collected
833	833	19 milk until it is ready for consumption.
834	834	20 "Breast pump collection and storage supplies"
835	835	21 includes, but is not limited to: breast shields and breast
836	836	22 shield connectors; breast pump tubes and tubing adapters;
837	837	23 breast pump valves and membranes; backflow protectors and
838	838	24 backflow protector adaptors; bottles and bottle caps
839	839	25 specific to the operation of the breast pump; and breast
840	840	26 milk storage bags.
841	841
842	842
843	843
844	844
845	845
846	846	HB4688 - 22 - LRB103 36580 HLH 66689 b
847	847
848	848
849	849	HB4688- 23 -LRB103 36580 HLH 66689 b HB4688 - 23 - LRB103 36580 HLH 66689 b
850	850	HB4688 - 23 - LRB103 36580 HLH 66689 b
851	851	1 "Breast pump collection and storage supplies" does not
852	852	2 include: (1) bottles and bottle caps not specific to the
853	853	3 operation of the breast pump; (2) breast pump travel bags
854	854	4 and other similar carrying accessories, including ice
855	855	5 packs, labels, and other similar products; (3) breast pump
856	856	6 cleaning supplies; (4) nursing bras, bra pads, breast
857	857	7 shells, and other similar products; and (5) creams,
858	858	8 ointments, and other similar products that relieve
859	859	9 breastfeeding-related symptoms or conditions of the
860	860	10 breasts or nipples, unless sold as part of a breast pump
861	861	11 kit that is pre-packaged by the breast pump manufacturer
862	862	12 or distributor.
863	863	13 "Breast pump kit" means a kit that: (1) contains no
864	864	14 more than a breast pump, breast pump collection and
865	865	15 storage supplies, a rechargeable battery for operating the
866	866	16 breast pump, a breastmilk cooler, bottle stands, ice
867	867	17 packs, and a breast pump carrying case; and (2) is
868	868	18 pre-packaged as a breast pump kit by the breast pump
869	869	19 manufacturer or distributor.
870	870	20 (42) Tangible personal property sold by or on behalf of
871	871	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
872	872	22 Property Act. This item (42) is exempt from the provisions of
873	873	23 Section 3-90.
874	874	24 (43) Beginning on January 1, 2024, tangible personal
875	875	25 property purchased by an active duty member of the armed
876	876	26 forces of the United States who presents valid military
877	877
878	878
879	879
880	880
881	881
882	882	HB4688 - 23 - LRB103 36580 HLH 66689 b
883	883
884	884
885	885	HB4688- 24 -LRB103 36580 HLH 66689 b HB4688 - 24 - LRB103 36580 HLH 66689 b
886	886	HB4688 - 24 - LRB103 36580 HLH 66689 b
887	887	1 identification and purchases the property using a form of
888	888	2 payment where the federal government is the payor. The member
889	889	3 of the armed forces must complete, at the point of sale, a form
890	890	4 prescribed by the Department of Revenue documenting that the
891	891	5 transaction is eligible for the exemption under this
892	892	6 paragraph. Retailers must keep the form as documentation of
893	893	7 the exemption in their records for a period of not less than 6
894	894	8 years. "Armed forces of the United States" means the United
895	895	9 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
896	896	10 This paragraph is exempt from the provisions of Section 3-90.
897	897	11 (44) Beginning on July 1, 2024, food for human consumption
898	898	12 that is to be consumed off the premises where it is sold (other
899	899	13 than alcoholic beverages, food consisting of or infused with
900	900	14 adult use cannabis, soft drinks, and food that has been
901	901	15 prepared for immediate consumption). This item (44) is exempt
902	902	16 from the provisions of Section 3-90.
903	903	17 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
904	904	18 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
905	905	19 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
906	906	20 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
907	907	21 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
908	908	22 revised 12-12-23.)
909	909	23 (35 ILCS 105/3-10)
910	910	24 Sec. 3-10. Rate of tax. Unless otherwise provided in this
911	911	25 Section, the tax imposed by this Act is at the rate of 6.25% of
912	912
913	913
914	914
915	915
916	916
917	917	HB4688 - 24 - LRB103 36580 HLH 66689 b
918	918
919	919
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921	921	HB4688 - 25 - LRB103 36580 HLH 66689 b
922	922	1 either the selling price or the fair market value, if any, of
923	923	2 the tangible personal property. In all cases where property
924	924	3 functionally used or consumed is the same as the property that
925	925	4 was purchased at retail, then the tax is imposed on the selling
926	926	5 price of the property. In all cases where property
927	927	6 functionally used or consumed is a by-product or waste product
928	928	7 that has been refined, manufactured, or produced from property
929	929	8 purchased at retail, then the tax is imposed on the lower of
930	930	9 the fair market value, if any, of the specific property so used
931	931	10 in this State or on the selling price of the property purchased
932	932	11 at retail. For purposes of this Section "fair market value"
933	933	12 means the price at which property would change hands between a
934	934	13 willing buyer and a willing seller, neither being under any
935	935	14 compulsion to buy or sell and both having reasonable knowledge
936	936	15 of the relevant facts. The fair market value shall be
937	937	16 established by Illinois sales by the taxpayer of the same
938	938	17 property as that functionally used or consumed, or if there
939	939	18 are no such sales by the taxpayer, then comparable sales or
940	940	19 purchases of property of like kind and character in Illinois.
941	941	20 Beginning on July 1, 2000 and through December 31, 2000,
942	942	21 with respect to motor fuel, as defined in Section 1.1 of the
943	943	22 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
944	944	23 the Use Tax Act, the tax is imposed at the rate of 1.25%.
945	945	24 Beginning 30 days after the effective date of this
946	946	25 amendatory Act of the 103rd General Assembly, with respect to:
947	947	26 motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
948	948
949	949
950	950
951	951
952	952
953	953	HB4688 - 25 - LRB103 36580 HLH 66689 b
954	954
955	955
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957	957	HB4688 - 26 - LRB103 36580 HLH 66689 b
958	958	1 Law; gasohol, as defined in Section 3-40 of this Act; majority
959	959	2 blended ethanol fuel; and biodiesel and biodiesel blends, the
960	960	3 tax imposed under this Act may not exceed the cents per gallon
961	961	4 rate established by the Department under subsection (e) of
962	962	5 Section 2d of the Retailers' Occupation Tax Act. With respect
963	963	6 to the tax imposed on biodiesel blends and gasohol, the
964	964	7 maximum cents per gallon rate shall include the reduction
965	965	8 allowed in subsection (e) of Section 2d of the Retailers'
966	966	9 Occupation Tax Act.
967	967	10 Beginning on August 6, 2010 through August 15, 2010, and
968	968	11 beginning again on August 5, 2022 through August 14, 2022,
969	969	12 with respect to sales tax holiday items as defined in Section
970	970	13 3-6 of this Act, the tax is imposed at the rate of 1.25%.
971	971	14 With respect to gasohol, the tax imposed by this Act
972	972	15 applies to (i) 70% of the proceeds of sales made on or after
973	973	16 January 1, 1990, and before July 1, 2003, (ii) 80% of the
974	974	17 proceeds of sales made on or after July 1, 2003 and on or
975	975	18 before July 1, 2017, (iii) 100% of the proceeds of sales made
976	976	19 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
977	977	20 the proceeds of sales made on or after January 1, 2024 and on
978	978	21 or before December 31, 2028, and (v) 100% of the proceeds of
979	979	22 sales made after December 31, 2028. If, at any time, however,
980	980	23 the tax under this Act on sales of gasohol is imposed at the
981	981	24 rate of 1.25%, then the tax imposed by this Act applies to 100%
982	982	25 of the proceeds of sales of gasohol made during that time.
983	983	26 With respect to mid-range ethanol blends, the tax imposed
984	984
985	985
986	986
987	987
988	988
989	989	HB4688 - 26 - LRB103 36580 HLH 66689 b
990	990
991	991
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993	993	HB4688 - 27 - LRB103 36580 HLH 66689 b
994	994	1 by this Act applies to (i) 80% of the proceeds of sales made on
995	995	2 or after January 1, 2024 and on or before December 31, 2028 and
996	996	3 (ii) 100% of the proceeds of sales made thereafter. If, at any
997	997	4 time, however, the tax under this Act on sales of mid-range
998	998	5 ethanol blends is imposed at the rate of 1.25%, then the tax
999	999	6 imposed by this Act applies to 100% of the proceeds of sales of
1000	1000	7 mid-range ethanol blends made during that time.
1001	1001	8 With respect to majority blended ethanol fuel, the tax
1002	1002	9 imposed by this Act does not apply to the proceeds of sales
1003	1003	10 made on or after July 1, 2003 and on or before December 31,
1004	1004	11 2028 but applies to 100% of the proceeds of sales made
1005	1005	12 thereafter.
1006	1006	13 With respect to biodiesel blends with no less than 1% and
1007	1007	14 no more than 10% biodiesel, the tax imposed by this Act applies
1008	1008	15 to (i) 80% of the proceeds of sales made on or after July 1,
1009	1009	16 2003 and on or before December 31, 2018 and (ii) 100% of the
1010	1010	17 proceeds of sales made after December 31, 2018 and before
1011	1011	18 January 1, 2024. On and after January 1, 2024 and on or before
1012	1012	19 December 31, 2030, the taxation of biodiesel, renewable
1013	1013	20 diesel, and biodiesel blends shall be as provided in Section
1014	1014	21 3-5.1. If, at any time, however, the tax under this Act on
1015	1015	22 sales of biodiesel blends with no less than 1% and no more than
1016	1016	23 10% biodiesel is imposed at the rate of 1.25%, then the tax
1017	1017	24 imposed by this Act applies to 100% of the proceeds of sales of
1018	1018	25 biodiesel blends with no less than 1% and no more than 10%
1019	1019	26 biodiesel made during that time.
1020	1020
1021	1021
1022	1022
1023	1023
1024	1024
1025	1025	HB4688 - 27 - LRB103 36580 HLH 66689 b
1026	1026
1027	1027
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1029	1029	HB4688 - 28 - LRB103 36580 HLH 66689 b
1030	1030	1 With respect to biodiesel and biodiesel blends with more
1031	1031	2 than 10% but no more than 99% biodiesel, the tax imposed by
1032	1032	3 this Act does not apply to the proceeds of sales made on or
1033	1033	4 after July 1, 2003 and on or before December 31, 2023. On and
1034	1034	5 after January 1, 2024 and on or before December 31, 2030, the
1035	1035	6 taxation of biodiesel, renewable diesel, and biodiesel blends
1036	1036	7 shall be as provided in Section 3-5.1.
1037	1037	8 Until July 1, 2022 and from beginning again on July 1, 2023
1038	1038	9 through June 30, 2024, with respect to food for human
1039	1039	10 consumption that is to be consumed off the premises where it is
1040	1040	11 sold (other than alcoholic beverages, food consisting of or
1041	1041	12 infused with adult use cannabis, soft drinks, and food that
1042	1042	13 has been prepared for immediate consumption), the tax is
1043	1043	14 imposed at the rate of 1%. From Beginning on July 1, 2022
1044	1044	15 through June 30, 2023, and on and after July 1, 2024, and until
1045	1045	16 July 1, 2023, with respect to food for human consumption that
1046	1046	17 is to be consumed off the premises where it is sold (other than
1047	1047	18 alcoholic beverages, food consisting of or infused with adult
1048	1048	19 use cannabis, soft drinks, and food that has been prepared for
1049	1049	20 immediate consumption) is exempt from the tax imposed under
1050	1050	21 this Act , the tax is imposed at the rate of 0%.
1051	1051	22 With respect to prescription and nonprescription
1052	1052	23 medicines, drugs, medical appliances, products classified as
1053	1053	24 Class III medical devices by the United States Food and Drug
1054	1054	25 Administration that are used for cancer treatment pursuant to
1055	1055	26 a prescription, as well as any accessories and components
1056	1056
1057	1057
1058	1058
1059	1059
1060	1060
1061	1061	HB4688 - 28 - LRB103 36580 HLH 66689 b
1062	1062
1063	1063
1064	1064	HB4688- 29 -LRB103 36580 HLH 66689 b HB4688 - 29 - LRB103 36580 HLH 66689 b
1065	1065	HB4688 - 29 - LRB103 36580 HLH 66689 b
1066	1066	1 related to those devices, modifications to a motor vehicle for
1067	1067	2 the purpose of rendering it usable by a person with a
1068	1068	3 disability, and insulin, blood sugar testing materials,
1069	1069	4 syringes, and needles used by human diabetics, the tax is
1070	1070	5 imposed at the rate of 1%. For the purposes of this Section,
1071	1071	6 until September 1, 2009: the term "soft drinks" means any
1072	1072	7 complete, finished, ready-to-use, non-alcoholic drink, whether
1073	1073	8 carbonated or not, including, but not limited to, soda water,
1074	1074	9 cola, fruit juice, vegetable juice, carbonated water, and all
1075	1075	10 other preparations commonly known as soft drinks of whatever
1076	1076	11 kind or description that are contained in any closed or sealed
1077	1077	12 bottle, can, carton, or container, regardless of size; but
1078	1078	13 "soft drinks" does not include coffee, tea, non-carbonated
1079	1079	14 water, infant formula, milk or milk products as defined in the
1080	1080	15 Grade A Pasteurized Milk and Milk Products Act, or drinks
1081	1081	16 containing 50% or more natural fruit or vegetable juice.
1082	1082	17 Notwithstanding any other provisions of this Act,
1083	1083	18 beginning September 1, 2009, "soft drinks" means non-alcoholic
1084	1084	19 beverages that contain natural or artificial sweeteners. "Soft
1085	1085	20 drinks" does not include beverages that contain milk or milk
1086	1086	21 products, soy, rice or similar milk substitutes, or greater
1087	1087	22 than 50% of vegetable or fruit juice by volume.
1088	1088	23 Until August 1, 2009, and notwithstanding any other
1089	1089	24 provisions of this Act, "food for human consumption that is to
1090	1090	25 be consumed off the premises where it is sold" includes all
1091	1091	26 food sold through a vending machine, except soft drinks and
1092	1092
1093	1093
1094	1094
1095	1095
1096	1096
1097	1097	HB4688 - 29 - LRB103 36580 HLH 66689 b
1098	1098
1099	1099
1100	1100	HB4688- 30 -LRB103 36580 HLH 66689 b HB4688 - 30 - LRB103 36580 HLH 66689 b
1101	1101	HB4688 - 30 - LRB103 36580 HLH 66689 b
1102	1102	1 food products that are dispensed hot from a vending machine,
1103	1103	2 regardless of the location of the vending machine. Beginning
1104	1104	3 August 1, 2009, and notwithstanding any other provisions of
1105	1105	4 this Act, "food for human consumption that is to be consumed
1106	1106	5 off the premises where it is sold" includes all food sold
1107	1107	6 through a vending machine, except soft drinks, candy, and food
1108	1108	7 products that are dispensed hot from a vending machine,
1109	1109	8 regardless of the location of the vending machine.
1110	1110	9 Notwithstanding any other provisions of this Act,
1111	1111	10 beginning September 1, 2009, "food for human consumption that
1112	1112	11 is to be consumed off the premises where it is sold" does not
1113	1113	12 include candy. For purposes of this Section, "candy" means a
1114	1114	13 preparation of sugar, honey, or other natural or artificial
1115	1115	14 sweeteners in combination with chocolate, fruits, nuts or
1116	1116	15 other ingredients or flavorings in the form of bars, drops, or
1117	1117	16 pieces. "Candy" does not include any preparation that contains
1118	1118	17 flour or requires refrigeration.
1119	1119	18 Notwithstanding any other provisions of this Act,
1120	1120	19 beginning September 1, 2009, "nonprescription medicines and
1121	1121	20 drugs" does not include grooming and hygiene products. For
1122	1122	21 purposes of this Section, "grooming and hygiene products"
1123	1123	22 includes, but is not limited to, soaps and cleaning solutions,
1124	1124	23 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1125	1125	24 lotions and screens, unless those products are available by
1126	1126	25 prescription only, regardless of whether the products meet the
1127	1127	26 definition of "over-the-counter-drugs". For the purposes of
1128	1128
1129	1129
1130	1130
1131	1131
1132	1132
1133	1133	HB4688 - 30 - LRB103 36580 HLH 66689 b
1134	1134
1135	1135
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1137	1137	HB4688 - 31 - LRB103 36580 HLH 66689 b
1138	1138	1 this paragraph, "over-the-counter-drug" means a drug for human
1139	1139	2 use that contains a label that identifies the product as a drug
1140	1140	3 as required by 21 CFR 201.66. The "over-the-counter-drug"
1141	1141	4 label includes:
1142	1142	5 (A) a "Drug Facts" panel; or
1143	1143	6 (B) a statement of the "active ingredient(s)" with a
1144	1144	7 list of those ingredients contained in the compound,
1145	1145	8 substance or preparation.
1146	1146	9 Beginning on January 1, 2014 (the effective date of Public
1147	1147	10 Act 98-122), "prescription and nonprescription medicines and
1148	1148	11 drugs" includes medical cannabis purchased from a registered
1149	1149	12 dispensing organization under the Compassionate Use of Medical
1150	1150	13 Cannabis Program Act.
1151	1151	14 As used in this Section, "adult use cannabis" means
1152	1152	15 cannabis subject to tax under the Cannabis Cultivation
1153	1153	16 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1154	1154	17 and does not include cannabis subject to tax under the
1155	1155	18 Compassionate Use of Medical Cannabis Program Act.
1156	1156	19 If the property that is purchased at retail from a
1157	1157	20 retailer is acquired outside Illinois and used outside
1158	1158	21 Illinois before being brought to Illinois for use here and is
1159	1159	22 taxable under this Act, the "selling price" on which the tax is
1160	1160	23 computed shall be reduced by an amount that represents a
1161	1161	24 reasonable allowance for depreciation for the period of prior
1162	1162	25 out-of-state use.
1163	1163	26 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
1164	1164
1165	1165
1166	1166
1167	1167
1168	1168
1169	1169	HB4688 - 31 - LRB103 36580 HLH 66689 b
1170	1170
1171	1171
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1173	1173	HB4688 - 32 - LRB103 36580 HLH 66689 b
1174	1174	1 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
1175	1175	2 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
1176	1176	3 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
1177	1177	4 (35 ILCS 105/3a) (from Ch. 120, par. 439.3a)
1178	1178	5 Sec. 3a. The tax imposed by the Act shall when collected be
1179	1179	6 stated as a distinct item separate and apart from the selling
1180	1180	7 price of the tangible personal property. However, where it is
1181	1181	8 not possible to state the sales tax separately in situations
1182	1182	9 such as sales from vending machines or sales of liquor by the
1183	1183	10 drink the Department may by rule exempt such sales from this
1184	1184	11 requirement so long as purchasers are notified by a sign that
1185	1185	12 the tax is included in the selling price.
1186	1186	13 In addition, retailers who sell items that would have been
1187	1187	14 taxed at the 1% rate but for the 0% rate imposed under this
1188	1188	15 amendatory Act of the 102nd General Assembly shall, to the
1189	1189	16 extent feasible, include the following statement on any cash
1190	1190	17 register tape, receipt, invoice, or sales ticket issued to
1191	1191	18 customers: "From July 1, 2022 through July 1, 2023, the State
1192	1192	19 of Illinois sales tax on groceries is 0%.". If it is not
1193	1193	20 feasible for the retailer to include the statement on any cash
1194	1194	21 register tape, receipt, invoice, or sales ticket issued to
1195	1195	22 customers, then the retailer shall post the statement on a
1196	1196	23 sign that is clearly visible to customers. The sign shall be no
1197	1197	24 smaller than 4 inches by 8 inches.
1198	1198	25 (Source: P.A. 102-700, eff. 4-19-22.)
1199	1199
1200	1200
1201	1201
1202	1202
1203	1203
1204	1204	HB4688 - 32 - LRB103 36580 HLH 66689 b
1205	1205
1206	1206
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1208	1208	HB4688 - 33 - LRB103 36580 HLH 66689 b
1209	1209	1 Section 15. The Service Use Tax Act is amended by changing
1210	1210	2 Sections 3-5 and 3-10 as follows:
1211	1211	3 (35 ILCS 110/3-5)
1212	1212	4 Sec. 3-5. Exemptions. Use of the following tangible
1213	1213	5 personal property is exempt from the tax imposed by this Act:
1214	1214	6 (1) Personal property purchased from a corporation,
1215	1215	7 society, association, foundation, institution, or
1216	1216	8 organization, other than a limited liability company, that is
1217	1217	9 organized and operated as a not-for-profit service enterprise
1218	1218	10 for the benefit of persons 65 years of age or older if the
1219	1219	11 personal property was not purchased by the enterprise for the
1220	1220	12 purpose of resale by the enterprise.
1221	1221	13 (2) Personal property purchased by a non-profit Illinois
1222	1222	14 county fair association for use in conducting, operating, or
1223	1223	15 promoting the county fair.
1224	1224	16 (3) Personal property purchased by a not-for-profit arts
1225	1225	17 or cultural organization that establishes, by proof required
1226	1226	18 by the Department by rule, that it has received an exemption
1227	1227	19 under Section 501(c)(3) of the Internal Revenue Code and that
1228	1228	20 is organized and operated primarily for the presentation or
1229	1229	21 support of arts or cultural programming, activities, or
1230	1230	22 services. These organizations include, but are not limited to,
1231	1231	23 music and dramatic arts organizations such as symphony
1232	1232	24 orchestras and theatrical groups, arts and cultural service
1233	1233
1234	1234
1235	1235
1236	1236
1237	1237
1238	1238	HB4688 - 33 - LRB103 36580 HLH 66689 b
1239	1239
1240	1240
1241	1241	HB4688- 34 -LRB103 36580 HLH 66689 b HB4688 - 34 - LRB103 36580 HLH 66689 b
1242	1242	HB4688 - 34 - LRB103 36580 HLH 66689 b
1243	1243	1 organizations, local arts councils, visual arts organizations,
1244	1244	2 and media arts organizations. On and after July 1, 2001 (the
1245	1245	3 effective date of Public Act 92-35), however, an entity
1246	1246	4 otherwise eligible for this exemption shall not make tax-free
1247	1247	5 purchases unless it has an active identification number issued
1248	1248	6 by the Department.
1249	1249	7 (4) Legal tender, currency, medallions, or gold or silver
1250	1250	8 coinage issued by the State of Illinois, the government of the
1251	1251	9 United States of America, or the government of any foreign
1252	1252	10 country, and bullion.
1253	1253	11 (5) Until July 1, 2003 and beginning again on September 1,
1254	1254	12 2004 through August 30, 2014, graphic arts machinery and
1255	1255	13 equipment, including repair and replacement parts, both new
1256	1256	14 and used, and including that manufactured on special order or
1257	1257	15 purchased for lease, certified by the purchaser to be used
1258	1258	16 primarily for graphic arts production. Equipment includes
1259	1259	17 chemicals or chemicals acting as catalysts but only if the
1260	1260	18 chemicals or chemicals acting as catalysts effect a direct and
1261	1261	19 immediate change upon a graphic arts product. Beginning on
1262	1262	20 July 1, 2017, graphic arts machinery and equipment is included
1263	1263	21 in the manufacturing and assembling machinery and equipment
1264	1264	22 exemption under Section 2 of this Act.
1265	1265	23 (6) Personal property purchased from a teacher-sponsored
1266	1266	24 student organization affiliated with an elementary or
1267	1267	25 secondary school located in Illinois.
1268	1268	26 (7) Farm machinery and equipment, both new and used,
1269	1269
1270	1270
1271	1271
1272	1272
1273	1273
1274	1274	HB4688 - 34 - LRB103 36580 HLH 66689 b
1275	1275
1276	1276
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1278	1278	HB4688 - 35 - LRB103 36580 HLH 66689 b
1279	1279	1 including that manufactured on special order, certified by the
1280	1280	2 purchaser to be used primarily for production agriculture or
1281	1281	3 State or federal agricultural programs, including individual
1282	1282	4 replacement parts for the machinery and equipment, including
1283	1283	5 machinery and equipment purchased for lease, and including
1284	1284	6 implements of husbandry defined in Section 1-130 of the
1285	1285	7 Illinois Vehicle Code, farm machinery and agricultural
1286	1286	8 chemical and fertilizer spreaders, and nurse wagons required
1287	1287	9 to be registered under Section 3-809 of the Illinois Vehicle
1288	1288	10 Code, but excluding other motor vehicles required to be
1289	1289	11 registered under the Illinois Vehicle Code. Horticultural
1290	1290	12 polyhouses or hoop houses used for propagating, growing, or
1291	1291	13 overwintering plants shall be considered farm machinery and
1292	1292	14 equipment under this item (7). Agricultural chemical tender
1293	1293	15 tanks and dry boxes shall include units sold separately from a
1294	1294	16 motor vehicle required to be licensed and units sold mounted
1295	1295	17 on a motor vehicle required to be licensed if the selling price
1296	1296	18 of the tender is separately stated.
1297	1297	19 Farm machinery and equipment shall include precision
1298	1298	20 farming equipment that is installed or purchased to be
1299	1299	21 installed on farm machinery and equipment, including, but not
1300	1300	22 limited to, tractors, harvesters, sprayers, planters, seeders,
1301	1301	23 or spreaders. Precision farming equipment includes, but is not
1302	1302	24 limited to, soil testing sensors, computers, monitors,
1303	1303	25 software, global positioning and mapping systems, and other
1304	1304	26 such equipment.
1305	1305
1306	1306
1307	1307
1308	1308
1309	1309
1310	1310	HB4688 - 35 - LRB103 36580 HLH 66689 b
1311	1311
1312	1312
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1314	1314	HB4688 - 36 - LRB103 36580 HLH 66689 b
1315	1315	1 Farm machinery and equipment also includes computers,
1316	1316	2 sensors, software, and related equipment used primarily in the
1317	1317	3 computer-assisted operation of production agriculture
1318	1318	4 facilities, equipment, and activities such as, but not limited
1319	1319	5 to, the collection, monitoring, and correlation of animal and
1320	1320	6 crop data for the purpose of formulating animal diets and
1321	1321	7 agricultural chemicals.
1322	1322	8 Beginning on January 1, 2024, farm machinery and equipment
1323	1323	9 also includes electrical power generation equipment used
1324	1324	10 primarily for production agriculture.
1325	1325	11 This item (7) is exempt from the provisions of Section
1326	1326	12 3-75.
1327	1327	13 (8) Until June 30, 2013, fuel and petroleum products sold
1328	1328	14 to or used by an air common carrier, certified by the carrier
1329	1329	15 to be used for consumption, shipment, or storage in the
1330	1330	16 conduct of its business as an air common carrier, for a flight
1331	1331	17 destined for or returning from a location or locations outside
1332	1332	18 the United States without regard to previous or subsequent
1333	1333	19 domestic stopovers.
1334	1334	20 Beginning July 1, 2013, fuel and petroleum products sold
1335	1335	21 to or used by an air carrier, certified by the carrier to be
1336	1336	22 used for consumption, shipment, or storage in the conduct of
1337	1337	23 its business as an air common carrier, for a flight that (i) is
1338	1338	24 engaged in foreign trade or is engaged in trade between the
1339	1339	25 United States and any of its possessions and (ii) transports
1340	1340	26 at least one individual or package for hire from the city of
1341	1341
1342	1342
1343	1343
1344	1344
1345	1345
1346	1346	HB4688 - 36 - LRB103 36580 HLH 66689 b
1347	1347
1348	1348
1349	1349	HB4688- 37 -LRB103 36580 HLH 66689 b HB4688 - 37 - LRB103 36580 HLH 66689 b
1350	1350	HB4688 - 37 - LRB103 36580 HLH 66689 b
1351	1351	1 origination to the city of final destination on the same
1352	1352	2 aircraft, without regard to a change in the flight number of
1353	1353	3 that aircraft.
1354	1354	4 (9) Proceeds of mandatory service charges separately
1355	1355	5 stated on customers' bills for the purchase and consumption of
1356	1356	6 food and beverages acquired as an incident to the purchase of a
1357	1357	7 service from a serviceman, to the extent that the proceeds of
1358	1358	8 the service charge are in fact turned over as tips or as a
1359	1359	9 substitute for tips to the employees who participate directly
1360	1360	10 in preparing, serving, hosting or cleaning up the food or
1361	1361	11 beverage function with respect to which the service charge is
1362	1362	12 imposed.
1363	1363	13 (10) Until July 1, 2003, oil field exploration, drilling,
1364	1364	14 and production equipment, including (i) rigs and parts of
1365	1365	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1366	1366	16 pipe and tubular goods, including casing and drill strings,
1367	1367	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1368	1368	18 lines, (v) any individual replacement part for oil field
1369	1369	19 exploration, drilling, and production equipment, and (vi)
1370	1370	20 machinery and equipment purchased for lease; but excluding
1371	1371	21 motor vehicles required to be registered under the Illinois
1372	1372	22 Vehicle Code.
1373	1373	23 (11) Proceeds from the sale of photoprocessing machinery
1374	1374	24 and equipment, including repair and replacement parts, both
1375	1375	25 new and used, including that manufactured on special order,
1376	1376	26 certified by the purchaser to be used primarily for
1377	1377
1378	1378
1379	1379
1380	1380
1381	1381
1382	1382	HB4688 - 37 - LRB103 36580 HLH 66689 b
1383	1383
1384	1384
1385	1385	HB4688- 38 -LRB103 36580 HLH 66689 b HB4688 - 38 - LRB103 36580 HLH 66689 b
1386	1386	HB4688 - 38 - LRB103 36580 HLH 66689 b
1387	1387	1 photoprocessing, and including photoprocessing machinery and
1388	1388	2 equipment purchased for lease.
1389	1389	3 (12) Until July 1, 2028, coal and aggregate exploration,
1390	1390	4 mining, off-highway hauling, processing, maintenance, and
1391	1391	5 reclamation equipment, including replacement parts and
1392	1392	6 equipment, and including equipment purchased for lease, but
1393	1393	7 excluding motor vehicles required to be registered under the
1394	1394	8 Illinois Vehicle Code. The changes made to this Section by
1395	1395	9 Public Act 97-767 apply on and after July 1, 2003, but no claim
1396	1396	10 for credit or refund is allowed on or after August 16, 2013
1397	1397	11 (the effective date of Public Act 98-456) for such taxes paid
1398	1398	12 during the period beginning July 1, 2003 and ending on August
1399	1399	13 16, 2013 (the effective date of Public Act 98-456).
1400	1400	14 (13) Semen used for artificial insemination of livestock
1401	1401	15 for direct agricultural production.
1402	1402	16 (14) Horses, or interests in horses, registered with and
1403	1403	17 meeting the requirements of any of the Arabian Horse Club
1404	1404	18 Registry of America, Appaloosa Horse Club, American Quarter
1405	1405	19 Horse Association, United States Trotting Association, or
1406	1406	20 Jockey Club, as appropriate, used for purposes of breeding or
1407	1407	21 racing for prizes. This item (14) is exempt from the
1408	1408	22 provisions of Section 3-75, and the exemption provided for
1409	1409	23 under this item (14) applies for all periods beginning May 30,
1410	1410	24 1995, but no claim for credit or refund is allowed on or after
1411	1411	25 January 1, 2008 (the effective date of Public Act 95-88) for
1412	1412	26 such taxes paid during the period beginning May 30, 2000 and
1413	1413
1414	1414
1415	1415
1416	1416
1417	1417
1418	1418	HB4688 - 38 - LRB103 36580 HLH 66689 b
1419	1419
1420	1420
1421	1421	HB4688- 39 -LRB103 36580 HLH 66689 b HB4688 - 39 - LRB103 36580 HLH 66689 b
1422	1422	HB4688 - 39 - LRB103 36580 HLH 66689 b
1423	1423	1 ending on January 1, 2008 (the effective date of Public Act
1424	1424	2 95-88).
1425	1425	3 (15) Computers and communications equipment utilized for
1426	1426	4 any hospital purpose and equipment used in the diagnosis,
1427	1427	5 analysis, or treatment of hospital patients purchased by a
1428	1428	6 lessor who leases the equipment, under a lease of one year or
1429	1429	7 longer executed or in effect at the time the lessor would
1430	1430	8 otherwise be subject to the tax imposed by this Act, to a
1431	1431	9 hospital that has been issued an active tax exemption
1432	1432	10 identification number by the Department under Section 1g of
1433	1433	11 the Retailers' Occupation Tax Act. If the equipment is leased
1434	1434	12 in a manner that does not qualify for this exemption or is used
1435	1435	13 in any other non-exempt manner, the lessor shall be liable for
1436	1436	14 the tax imposed under this Act or the Use Tax Act, as the case
1437	1437	15 may be, based on the fair market value of the property at the
1438	1438	16 time the non-qualifying use occurs. No lessor shall collect or
1439	1439	17 attempt to collect an amount (however designated) that
1440	1440	18 purports to reimburse that lessor for the tax imposed by this
1441	1441	19 Act or the Use Tax Act, as the case may be, if the tax has not
1442	1442	20 been paid by the lessor. If a lessor improperly collects any
1443	1443	21 such amount from the lessee, the lessee shall have a legal
1444	1444	22 right to claim a refund of that amount from the lessor. If,
1445	1445	23 however, that amount is not refunded to the lessee for any
1446	1446	24 reason, the lessor is liable to pay that amount to the
1447	1447	25 Department.
1448	1448	26 (16) Personal property purchased by a lessor who leases
1449	1449
1450	1450
1451	1451
1452	1452
1453	1453
1454	1454	HB4688 - 39 - LRB103 36580 HLH 66689 b
1455	1455
1456	1456
1457	1457	HB4688- 40 -LRB103 36580 HLH 66689 b HB4688 - 40 - LRB103 36580 HLH 66689 b
1458	1458	HB4688 - 40 - LRB103 36580 HLH 66689 b
1459	1459	1 the property, under a lease of one year or longer executed or
1460	1460	2 in effect at the time the lessor would otherwise be subject to
1461	1461	3 the tax imposed by this Act, to a governmental body that has
1462	1462	4 been issued an active tax exemption identification number by
1463	1463	5 the Department under Section 1g of the Retailers' Occupation
1464	1464	6 Tax Act. If the property is leased in a manner that does not
1465	1465	7 qualify for this exemption or is used in any other non-exempt
1466	1466	8 manner, the lessor shall be liable for the tax imposed under
1467	1467	9 this Act or the Use Tax Act, as the case may be, based on the
1468	1468	10 fair market value of the property at the time the
1469	1469	11 non-qualifying use occurs. No lessor shall collect or attempt
1470	1470	12 to collect an amount (however designated) that purports to
1471	1471	13 reimburse that lessor for the tax imposed by this Act or the
1472	1472	14 Use Tax Act, as the case may be, if the tax has not been paid
1473	1473	15 by the lessor. If a lessor improperly collects any such amount
1474	1474	16 from the lessee, the lessee shall have a legal right to claim a
1475	1475	17 refund of that amount from the lessor. If, however, that
1476	1476	18 amount is not refunded to the lessee for any reason, the lessor
1477	1477	19 is liable to pay that amount to the Department.
1478	1478	20 (17) Beginning with taxable years ending on or after
1479	1479	21 December 31, 1995 and ending with taxable years ending on or
1480	1480	22 before December 31, 2004, personal property that is donated
1481	1481	23 for disaster relief to be used in a State or federally declared
1482	1482	24 disaster area in Illinois or bordering Illinois by a
1483	1483	25 manufacturer or retailer that is registered in this State to a
1484	1484	26 corporation, society, association, foundation, or institution
1485	1485
1486	1486
1487	1487
1488	1488
1489	1489
1490	1490	HB4688 - 40 - LRB103 36580 HLH 66689 b
1491	1491
1492	1492
1493	1493	HB4688- 41 -LRB103 36580 HLH 66689 b HB4688 - 41 - LRB103 36580 HLH 66689 b
1494	1494	HB4688 - 41 - LRB103 36580 HLH 66689 b
1495	1495	1 that has been issued a sales tax exemption identification
1496	1496	2 number by the Department that assists victims of the disaster
1497	1497	3 who reside within the declared disaster area.
1498	1498	4 (18) Beginning with taxable years ending on or after
1499	1499	5 December 31, 1995 and ending with taxable years ending on or
1500	1500	6 before December 31, 2004, personal property that is used in
1501	1501	7 the performance of infrastructure repairs in this State,
1502	1502	8 including, but not limited to, municipal roads and streets,
1503	1503	9 access roads, bridges, sidewalks, waste disposal systems,
1504	1504	10 water and sewer line extensions, water distribution and
1505	1505	11 purification facilities, storm water drainage and retention
1506	1506	12 facilities, and sewage treatment facilities, resulting from a
1507	1507	13 State or federally declared disaster in Illinois or bordering
1508	1508	14 Illinois when such repairs are initiated on facilities located
1509	1509	15 in the declared disaster area within 6 months after the
1510	1510	16 disaster.
1511	1511	17 (19) Beginning July 1, 1999, game or game birds purchased
1512	1512	18 at a "game breeding and hunting preserve area" as that term is
1513	1513	19 used in the Wildlife Code. This paragraph is exempt from the
1514	1514	20 provisions of Section 3-75.
1515	1515	21 (20) A motor vehicle, as that term is defined in Section
1516	1516	22 1-146 of the Illinois Vehicle Code, that is donated to a
1517	1517	23 corporation, limited liability company, society, association,
1518	1518	24 foundation, or institution that is determined by the
1519	1519	25 Department to be organized and operated exclusively for
1520	1520	26 educational purposes. For purposes of this exemption, "a
1521	1521
1522	1522
1523	1523
1524	1524
1525	1525
1526	1526	HB4688 - 41 - LRB103 36580 HLH 66689 b
1527	1527
1528	1528
1529	1529	HB4688- 42 -LRB103 36580 HLH 66689 b HB4688 - 42 - LRB103 36580 HLH 66689 b
1530	1530	HB4688 - 42 - LRB103 36580 HLH 66689 b
1531	1531	1 corporation, limited liability company, society, association,
1532	1532	2 foundation, or institution organized and operated exclusively
1533	1533	3 for educational purposes" means all tax-supported public
1534	1534	4 schools, private schools that offer systematic instruction in
1535	1535	5 useful branches of learning by methods common to public
1536	1536	6 schools and that compare favorably in their scope and
1537	1537	7 intensity with the course of study presented in tax-supported
1538	1538	8 schools, and vocational or technical schools or institutes
1539	1539	9 organized and operated exclusively to provide a course of
1540	1540	10 study of not less than 6 weeks duration and designed to prepare
1541	1541	11 individuals to follow a trade or to pursue a manual,
1542	1542	12 technical, mechanical, industrial, business, or commercial
1543	1543	13 occupation.
1544	1544	14 (21) Beginning January 1, 2000, personal property,
1545	1545	15 including food, purchased through fundraising events for the
1546	1546	16 benefit of a public or private elementary or secondary school,
1547	1547	17 a group of those schools, or one or more school districts if
1548	1548	18 the events are sponsored by an entity recognized by the school
1549	1549	19 district that consists primarily of volunteers and includes
1550	1550	20 parents and teachers of the school children. This paragraph
1551	1551	21 does not apply to fundraising events (i) for the benefit of
1552	1552	22 private home instruction or (ii) for which the fundraising
1553	1553	23 entity purchases the personal property sold at the events from
1554	1554	24 another individual or entity that sold the property for the
1555	1555	25 purpose of resale by the fundraising entity and that profits
1556	1556	26 from the sale to the fundraising entity. This paragraph is
1557	1557
1558	1558
1559	1559
1560	1560
1561	1561
1562	1562	HB4688 - 42 - LRB103 36580 HLH 66689 b
1563	1563
1564	1564
1565	1565	HB4688- 43 -LRB103 36580 HLH 66689 b HB4688 - 43 - LRB103 36580 HLH 66689 b
1566	1566	HB4688 - 43 - LRB103 36580 HLH 66689 b
1567	1567	1 exempt from the provisions of Section 3-75.
1568	1568	2 (22) Beginning January 1, 2000 and through December 31,
1569	1569	3 2001, new or used automatic vending machines that prepare and
1570	1570	4 serve hot food and beverages, including coffee, soup, and
1571	1571	5 other items, and replacement parts for these machines.
1572	1572	6 Beginning January 1, 2002 and through June 30, 2003, machines
1573	1573	7 and parts for machines used in commercial, coin-operated
1574	1574	8 amusement and vending business if a use or occupation tax is
1575	1575	9 paid on the gross receipts derived from the use of the
1576	1576	10 commercial, coin-operated amusement and vending machines. This
1577	1577	11 paragraph is exempt from the provisions of Section 3-75.
1578	1578	12 (23) Beginning August 23, 2001 and through June 30, 2016,
1579	1579	13 food for human consumption that is to be consumed off the
1580	1580	14 premises where it is sold (other than alcoholic beverages,
1581	1581	15 soft drinks, and food that has been prepared for immediate
1582	1582	16 consumption) and prescription and nonprescription medicines,
1583	1583	17 drugs, medical appliances, and insulin, urine testing
1584	1584	18 materials, syringes, and needles used by diabetics, for human
1585	1585	19 use, when purchased for use by a person receiving medical
1586	1586	20 assistance under Article V of the Illinois Public Aid Code who
1587	1587	21 resides in a licensed long-term care facility, as defined in
1588	1588	22 the Nursing Home Care Act, or in a licensed facility as defined
1589	1589	23 in the ID/DD Community Care Act, the MC/DD Act, or the
1590	1590	24 Specialized Mental Health Rehabilitation Act of 2013.
1591	1591	25 (24) Beginning on August 2, 2001 (the effective date of
1592	1592	26 Public Act 92-227), computers and communications equipment
1593	1593
1594	1594
1595	1595
1596	1596
1597	1597
1598	1598	HB4688 - 43 - LRB103 36580 HLH 66689 b
1599	1599
1600	1600
1601	1601	HB4688- 44 -LRB103 36580 HLH 66689 b HB4688 - 44 - LRB103 36580 HLH 66689 b
1602	1602	HB4688 - 44 - LRB103 36580 HLH 66689 b
1603	1603	1 utilized for any hospital purpose and equipment used in the
1604	1604	2 diagnosis, analysis, or treatment of hospital patients
1605	1605	3 purchased by a lessor who leases the equipment, under a lease
1606	1606	4 of one year or longer executed or in effect at the time the
1607	1607	5 lessor would otherwise be subject to the tax imposed by this
1608	1608	6 Act, to a hospital that has been issued an active tax exemption
1609	1609	7 identification number by the Department under Section 1g of
1610	1610	8 the Retailers' Occupation Tax Act. If the equipment is leased
1611	1611	9 in a manner that does not qualify for this exemption or is used
1612	1612	10 in any other nonexempt manner, the lessor shall be liable for
1613	1613	11 the tax imposed under this Act or the Use Tax Act, as the case
1614	1614	12 may be, based on the fair market value of the property at the
1615	1615	13 time the nonqualifying use occurs. No lessor shall collect or
1616	1616	14 attempt to collect an amount (however designated) that
1617	1617	15 purports to reimburse that lessor for the tax imposed by this
1618	1618	16 Act or the Use Tax Act, as the case may be, if the tax has not
1619	1619	17 been paid by the lessor. If a lessor improperly collects any
1620	1620	18 such amount from the lessee, the lessee shall have a legal
1621	1621	19 right to claim a refund of that amount from the lessor. If,
1622	1622	20 however, that amount is not refunded to the lessee for any
1623	1623	21 reason, the lessor is liable to pay that amount to the
1624	1624	22 Department. This paragraph is exempt from the provisions of
1625	1625	23 Section 3-75.
1626	1626	24 (25) Beginning on August 2, 2001 (the effective date of
1627	1627	25 Public Act 92-227), personal property purchased by a lessor
1628	1628	26 who leases the property, under a lease of one year or longer
1629	1629
1630	1630
1631	1631
1632	1632
1633	1633
1634	1634	HB4688 - 44 - LRB103 36580 HLH 66689 b
1635	1635
1636	1636
1637	1637	HB4688- 45 -LRB103 36580 HLH 66689 b HB4688 - 45 - LRB103 36580 HLH 66689 b
1638	1638	HB4688 - 45 - LRB103 36580 HLH 66689 b
1639	1639	1 executed or in effect at the time the lessor would otherwise be
1640	1640	2 subject to the tax imposed by this Act, to a governmental body
1641	1641	3 that has been issued an active tax exemption identification
1642	1642	4 number by the Department under Section 1g of the Retailers'
1643	1643	5 Occupation Tax Act. If the property is leased in a manner that
1644	1644	6 does not qualify for this exemption or is used in any other
1645	1645	7 nonexempt manner, the lessor shall be liable for the tax
1646	1646	8 imposed under this Act or the Use Tax Act, as the case may be,
1647	1647	9 based on the fair market value of the property at the time the
1648	1648	10 nonqualifying use occurs. No lessor shall collect or attempt
1649	1649	11 to collect an amount (however designated) that purports to
1650	1650	12 reimburse that lessor for the tax imposed by this Act or the
1651	1651	13 Use Tax Act, as the case may be, if the tax has not been paid
1652	1652	14 by the lessor. If a lessor improperly collects any such amount
1653	1653	15 from the lessee, the lessee shall have a legal right to claim a
1654	1654	16 refund of that amount from the lessor. If, however, that
1655	1655	17 amount is not refunded to the lessee for any reason, the lessor
1656	1656	18 is liable to pay that amount to the Department. This paragraph
1657	1657	19 is exempt from the provisions of Section 3-75.
1658	1658	20 (26) Beginning January 1, 2008, tangible personal property
1659	1659	21 used in the construction or maintenance of a community water
1660	1660	22 supply, as defined under Section 3.145 of the Environmental
1661	1661	23 Protection Act, that is operated by a not-for-profit
1662	1662	24 corporation that holds a valid water supply permit issued
1663	1663	25 under Title IV of the Environmental Protection Act. This
1664	1664	26 paragraph is exempt from the provisions of Section 3-75.
1665	1665
1666	1666
1667	1667
1668	1668
1669	1669
1670	1670	HB4688 - 45 - LRB103 36580 HLH 66689 b
1671	1671
1672	1672
1673	1673	HB4688- 46 -LRB103 36580 HLH 66689 b HB4688 - 46 - LRB103 36580 HLH 66689 b
1674	1674	HB4688 - 46 - LRB103 36580 HLH 66689 b
1675	1675	1 (27) Beginning January 1, 2010 and continuing through
1676	1676	2 December 31, 2029, materials, parts, equipment, components,
1677	1677	3 and furnishings incorporated into or upon an aircraft as part
1678	1678	4 of the modification, refurbishment, completion, replacement,
1679	1679	5 repair, or maintenance of the aircraft. This exemption
1680	1680	6 includes consumable supplies used in the modification,
1681	1681	7 refurbishment, completion, replacement, repair, and
1682	1682	8 maintenance of aircraft. However, until January 1, 2024, this
1683	1683	9 exemption excludes any materials, parts, equipment,
1684	1684	10 components, and consumable supplies used in the modification,
1685	1685	11 replacement, repair, and maintenance of aircraft engines or
1686	1686	12 power plants, whether such engines or power plants are
1687	1687	13 installed or uninstalled upon any such aircraft. "Consumable
1688	1688	14 supplies" include, but are not limited to, adhesive, tape,
1689	1689	15 sandpaper, general purpose lubricants, cleaning solution,
1690	1690	16 latex gloves, and protective films.
1691	1691	17 Beginning January 1, 2010 and continuing through December
1692	1692	18 31, 2023, this exemption applies only to the use of qualifying
1693	1693	19 tangible personal property transferred incident to the
1694	1694	20 modification, refurbishment, completion, replacement, repair,
1695	1695	21 or maintenance of aircraft by persons who (i) hold an Air
1696	1696	22 Agency Certificate and are empowered to operate an approved
1697	1697	23 repair station by the Federal Aviation Administration, (ii)
1698	1698	24 have a Class IV Rating, and (iii) conduct operations in
1699	1699	25 accordance with Part 145 of the Federal Aviation Regulations.
1700	1700	26 From January 1, 2024 through December 31, 2029, this exemption
1701	1701
1702	1702
1703	1703
1704	1704
1705	1705
1706	1706	HB4688 - 46 - LRB103 36580 HLH 66689 b
1707	1707
1708	1708
1709	1709	HB4688- 47 -LRB103 36580 HLH 66689 b HB4688 - 47 - LRB103 36580 HLH 66689 b
1710	1710	HB4688 - 47 - LRB103 36580 HLH 66689 b
1711	1711	1 applies only to the use of qualifying tangible personal
1712	1712	2 property by: (A) persons who modify, refurbish, complete,
1713	1713	3 repair, replace, or maintain aircraft and who (i) hold an Air
1714	1714	4 Agency Certificate and are empowered to operate an approved
1715	1715	5 repair station by the Federal Aviation Administration, (ii)
1716	1716	6 have a Class IV Rating, and (iii) conduct operations in
1717	1717	7 accordance with Part 145 of the Federal Aviation Regulations;
1718	1718	8 and (B) persons who engage in the modification, replacement,
1719	1719	9 repair, and maintenance of aircraft engines or power plants
1720	1720	10 without regard to whether or not those persons meet the
1721	1721	11 qualifications of item (A).
1722	1722	12 The exemption does not include aircraft operated by a
1723	1723	13 commercial air carrier providing scheduled passenger air
1724	1724	14 service pursuant to authority issued under Part 121 or Part
1725	1725	15 129 of the Federal Aviation Regulations. The changes made to
1726	1726	16 this paragraph (27) by Public Act 98-534 are declarative of
1727	1727	17 existing law. It is the intent of the General Assembly that the
1728	1728	18 exemption under this paragraph (27) applies continuously from
1729	1729	19 January 1, 2010 through December 31, 2024; however, no claim
1730	1730	20 for credit or refund is allowed for taxes paid as a result of
1731	1731	21 the disallowance of this exemption on or after January 1, 2015
1732	1732	22 and prior to February 5, 2020 (the effective date of Public Act
1733	1733	23 101-629).
1734	1734	24 (28) Tangible personal property purchased by a
1735	1735	25 public-facilities corporation, as described in Section
1736	1736	26 11-65-10 of the Illinois Municipal Code, for purposes of
1737	1737
1738	1738
1739	1739
1740	1740
1741	1741
1742	1742	HB4688 - 47 - LRB103 36580 HLH 66689 b
1743	1743
1744	1744
1745	1745	HB4688- 48 -LRB103 36580 HLH 66689 b HB4688 - 48 - LRB103 36580 HLH 66689 b
1746	1746	HB4688 - 48 - LRB103 36580 HLH 66689 b
1747	1747	1 constructing or furnishing a municipal convention hall, but
1748	1748	2 only if the legal title to the municipal convention hall is
1749	1749	3 transferred to the municipality without any further
1750	1750	4 consideration by or on behalf of the municipality at the time
1751	1751	5 of the completion of the municipal convention hall or upon the
1752	1752	6 retirement or redemption of any bonds or other debt
1753	1753	7 instruments issued by the public-facilities corporation in
1754	1754	8 connection with the development of the municipal convention
1755	1755	9 hall. This exemption includes existing public-facilities
1756	1756	10 corporations as provided in Section 11-65-25 of the Illinois
1757	1757	11 Municipal Code. This paragraph is exempt from the provisions
1758	1758	12 of Section 3-75.
1759	1759	13 (29) Beginning January 1, 2017 and through December 31,
1760	1760	14 2026, menstrual pads, tampons, and menstrual cups.
1761	1761	15 (30) Tangible personal property transferred to a purchaser
1762	1762	16 who is exempt from the tax imposed by this Act by operation of
1763	1763	17 federal law. This paragraph is exempt from the provisions of
1764	1764	18 Section 3-75.
1765	1765	19 (31) Qualified tangible personal property used in the
1766	1766	20 construction or operation of a data center that has been
1767	1767	21 granted a certificate of exemption by the Department of
1768	1768	22 Commerce and Economic Opportunity, whether that tangible
1769	1769	23 personal property is purchased by the owner, operator, or
1770	1770	24 tenant of the data center or by a contractor or subcontractor
1771	1771	25 of the owner, operator, or tenant. Data centers that would
1772	1772	26 have qualified for a certificate of exemption prior to January
1773	1773
1774	1774
1775	1775
1776	1776
1777	1777
1778	1778	HB4688 - 48 - LRB103 36580 HLH 66689 b
1779	1779
1780	1780
1781	1781	HB4688- 49 -LRB103 36580 HLH 66689 b HB4688 - 49 - LRB103 36580 HLH 66689 b
1782	1782	HB4688 - 49 - LRB103 36580 HLH 66689 b
1783	1783	1 1, 2020 had Public Act 101-31 been in effect, may apply for and
1784	1784	2 obtain an exemption for subsequent purchases of computer
1785	1785	3 equipment or enabling software purchased or leased to upgrade,
1786	1786	4 supplement, or replace computer equipment or enabling software
1787	1787	5 purchased or leased in the original investment that would have
1788	1788	6 qualified.
1789	1789	7 The Department of Commerce and Economic Opportunity shall
1790	1790	8 grant a certificate of exemption under this item (31) to
1791	1791	9 qualified data centers as defined by Section 605-1025 of the
1792	1792	10 Department of Commerce and Economic Opportunity Law of the
1793	1793	11 Civil Administrative Code of Illinois.
1794	1794	12 For the purposes of this item (31):
1795	1795	13 "Data center" means a building or a series of
1796	1796	14 buildings rehabilitated or constructed to house working
1797	1797	15 servers in one physical location or multiple sites within
1798	1798	16 the State of Illinois.
1799	1799	17 "Qualified tangible personal property" means:
1800	1800	18 electrical systems and equipment; climate control and
1801	1801	19 chilling equipment and systems; mechanical systems and
1802	1802	20 equipment; monitoring and secure systems; emergency
1803	1803	21 generators; hardware; computers; servers; data storage
1804	1804	22 devices; network connectivity equipment; racks; cabinets;
1805	1805	23 telecommunications cabling infrastructure; raised floor
1806	1806	24 systems; peripheral components or systems; software;
1807	1807	25 mechanical, electrical, or plumbing systems; battery
1808	1808	26 systems; cooling systems and towers; temperature control
1809	1809
1810	1810
1811	1811
1812	1812
1813	1813
1814	1814	HB4688 - 49 - LRB103 36580 HLH 66689 b
1815	1815
1816	1816
1817	1817	HB4688- 50 -LRB103 36580 HLH 66689 b HB4688 - 50 - LRB103 36580 HLH 66689 b
1818	1818	HB4688 - 50 - LRB103 36580 HLH 66689 b
1819	1819	1 systems; other cabling; and other data center
1820	1820	2 infrastructure equipment and systems necessary to operate
1821	1821	3 qualified tangible personal property, including fixtures;
1822	1822	4 and component parts of any of the foregoing, including
1823	1823	5 installation, maintenance, repair, refurbishment, and
1824	1824	6 replacement of qualified tangible personal property to
1825	1825	7 generate, transform, transmit, distribute, or manage
1826	1826	8 electricity necessary to operate qualified tangible
1827	1827	9 personal property; and all other tangible personal
1828	1828	10 property that is essential to the operations of a computer
1829	1829	11 data center. The term "qualified tangible personal
1830	1830	12 property" also includes building materials physically
1831	1831	13 incorporated into in to the qualifying data center. To
1832	1832	14 document the exemption allowed under this Section, the
1833	1833	15 retailer must obtain from the purchaser a copy of the
1834	1834	16 certificate of eligibility issued by the Department of
1835	1835	17 Commerce and Economic Opportunity.
1836	1836	18 This item (31) is exempt from the provisions of Section
1837	1837	19 3-75.
1838	1838	20 (32) Beginning July 1, 2022, breast pumps, breast pump
1839	1839	21 collection and storage supplies, and breast pump kits. This
1840	1840	22 item (32) is exempt from the provisions of Section 3-75. As
1841	1841	23 used in this item (32):
1842	1842	24 "Breast pump" means an electrically controlled or
1843	1843	25 manually controlled pump device designed or marketed to be
1844	1844	26 used to express milk from a human breast during lactation,
1845	1845
1846	1846
1847	1847
1848	1848
1849	1849
1850	1850	HB4688 - 50 - LRB103 36580 HLH 66689 b
1851	1851
1852	1852
1853	1853	HB4688- 51 -LRB103 36580 HLH 66689 b HB4688 - 51 - LRB103 36580 HLH 66689 b
1854	1854	HB4688 - 51 - LRB103 36580 HLH 66689 b
1855	1855	1 including the pump device and any battery, AC adapter, or
1856	1856	2 other power supply unit that is used to power the pump
1857	1857	3 device and is packaged and sold with the pump device at the
1858	1858	4 time of sale.
1859	1859	5 "Breast pump collection and storage supplies" means
1860	1860	6 items of tangible personal property designed or marketed
1861	1861	7 to be used in conjunction with a breast pump to collect
1862	1862	8 milk expressed from a human breast and to store collected
1863	1863	9 milk until it is ready for consumption.
1864	1864	10 "Breast pump collection and storage supplies"
1865	1865	11 includes, but is not limited to: breast shields and breast
1866	1866	12 shield connectors; breast pump tubes and tubing adapters;
1867	1867	13 breast pump valves and membranes; backflow protectors and
1868	1868	14 backflow protector adaptors; bottles and bottle caps
1869	1869	15 specific to the operation of the breast pump; and breast
1870	1870	16 milk storage bags.
1871	1871	17 "Breast pump collection and storage supplies" does not
1872	1872	18 include: (1) bottles and bottle caps not specific to the
1873	1873	19 operation of the breast pump; (2) breast pump travel bags
1874	1874	20 and other similar carrying accessories, including ice
1875	1875	21 packs, labels, and other similar products; (3) breast pump
1876	1876	22 cleaning supplies; (4) nursing bras, bra pads, breast
1877	1877	23 shells, and other similar products; and (5) creams,
1878	1878	24 ointments, and other similar products that relieve
1879	1879	25 breastfeeding-related symptoms or conditions of the
1880	1880	26 breasts or nipples, unless sold as part of a breast pump
1881	1881
1882	1882
1883	1883
1884	1884
1885	1885
1886	1886	HB4688 - 51 - LRB103 36580 HLH 66689 b
1887	1887
1888	1888
1889	1889	HB4688- 52 -LRB103 36580 HLH 66689 b HB4688 - 52 - LRB103 36580 HLH 66689 b
1890	1890	HB4688 - 52 - LRB103 36580 HLH 66689 b
1891	1891	1 kit that is pre-packaged by the breast pump manufacturer
1892	1892	2 or distributor.
1893	1893	3 "Breast pump kit" means a kit that: (1) contains no
1894	1894	4 more than a breast pump, breast pump collection and
1895	1895	5 storage supplies, a rechargeable battery for operating the
1896	1896	6 breast pump, a breastmilk cooler, bottle stands, ice
1897	1897	7 packs, and a breast pump carrying case; and (2) is
1898	1898	8 pre-packaged as a breast pump kit by the breast pump
1899	1899	9 manufacturer or distributor.
1900	1900	10 (33) Tangible personal property sold by or on behalf of
1901	1901	11 the State Treasurer pursuant to the Revised Uniform Unclaimed
1902	1902	12 Property Act. This item (33) is exempt from the provisions of
1903	1903	13 Section 3-75.
1904	1904	14 (34) Beginning on January 1, 2024, tangible personal
1905	1905	15 property purchased by an active duty member of the armed
1906	1906	16 forces of the United States who presents valid military
1907	1907	17 identification and purchases the property using a form of
1908	1908	18 payment where the federal government is the payor. The member
1909	1909	19 of the armed forces must complete, at the point of sale, a form
1910	1910	20 prescribed by the Department of Revenue documenting that the
1911	1911	21 transaction is eligible for the exemption under this
1912	1912	22 paragraph. Retailers must keep the form as documentation of
1913	1913	23 the exemption in their records for a period of not less than 6
1914	1914	24 years. "Armed forces of the United States" means the United
1915	1915	25 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1916	1916	26 This paragraph is exempt from the provisions of Section 3-75.
1917	1917
1918	1918
1919	1919
1920	1920
1921	1921
1922	1922	HB4688 - 52 - LRB103 36580 HLH 66689 b
1923	1923
1924	1924
1925	1925	HB4688- 53 -LRB103 36580 HLH 66689 b HB4688 - 53 - LRB103 36580 HLH 66689 b
1926	1926	HB4688 - 53 - LRB103 36580 HLH 66689 b
1927	1927	1 (35) Beginning on July 1, 2024, food prepared for
1928	1928	2 immediate consumption and transferred incident to a sale of
1929	1929	3 service subject to this Act or the Service Occupation Tax Act
1930	1930	4 by an entity licensed under the Hospital Licensing Act, the
1931	1931	5 Nursing Home Care Act, the Assisted Living and Shared Housing
1932	1932	6 Act, the ID/DD Community Care Act, the MC/DD Act, the
1933	1933	7 Specialized Mental Health Rehabilitation Act of 2013, or the
1934	1934	8 Child Care Act of 1969 or an entity that holds a permit issued
1935	1935	9 pursuant to the Life Care Facilities Act. This item (35) is
1936	1936	10 exempt from the provisions of Section 3-75.
1937	1937	11 (36) Beginning on July 1, 2024, food for human consumption
1938	1938	12 that is to be consumed off the premises where it is sold (other
1939	1939	13 than alcoholic beverages, food consisting of or infused with
1940	1940	14 adult use cannabis, soft drinks, and food that has been
1941	1941	15 prepared for immediate consumption). This item (36) is exempt
1942	1942	16 from the provisions of Section 3-75.
1943	1943	17 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1944	1944	18 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1945	1945	19 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1946	1946	20 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1947	1947	21 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1948	1948	22 revised 12-12-23.)
1949	1949	23 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
1950	1950	24 Sec. 3-10. Rate of tax. Unless otherwise provided in this
1951	1951	25 Section, the tax imposed by this Act is at the rate of 6.25% of
1952	1952
1953	1953
1954	1954
1955	1955
1956	1956
1957	1957	HB4688 - 53 - LRB103 36580 HLH 66689 b
1958	1958
1959	1959
1960	1960	HB4688- 54 -LRB103 36580 HLH 66689 b HB4688 - 54 - LRB103 36580 HLH 66689 b
1961	1961	HB4688 - 54 - LRB103 36580 HLH 66689 b
1962	1962	1 the selling price of tangible personal property transferred as
1963	1963	2 an incident to the sale of service, but, for the purpose of
1964	1964	3 computing this tax, in no event shall the selling price be less
1965	1965	4 than the cost price of the property to the serviceman.
1966	1966	5 Beginning on July 1, 2000 and through December 31, 2000,
1967	1967	6 with respect to motor fuel, as defined in Section 1.1 of the
1968	1968	7 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1969	1969	8 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1970	1970	9 Beginning 30 days after the effective date of this
1971	1971	10 amendatory Act of the 103rd General Assembly, with respect to:
1972	1972	11 motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
1973	1973	12 Law; gasohol, as defined in Section 3-40 of the Use Tax Act;
1974	1974	13 majority blended ethanol fuel; and biodiesel and biodiesel
1975	1975	14 blends, the tax imposed under this Act may not exceed the cents
1976	1976	15 per gallon rate established by the Department under subsection
1977	1977	16 (e) of Section 2d of the Retailers' Occupation Tax Act. With
1978	1978	17 respect to the tax imposed on biodiesel blends and gasohol,
1979	1979	18 the maximum cents per gallon rate shall include the reduction
1980	1980	19 allowed in subsection (e) of Section 2d of the Retailers'
1981	1981	20 Occupation Tax Act.
1982	1982	21 With respect to gasohol, as defined in the Use Tax Act, the
1983	1983	22 tax imposed by this Act applies to (i) 70% of the selling price
1984	1984	23 of property transferred as an incident to the sale of service
1985	1985	24 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
1986	1986	25 of the selling price of property transferred as an incident to
1987	1987	26 the sale of service on or after July 1, 2003 and on or before
1988	1988
1989	1989
1990	1990
1991	1991
1992	1992
1993	1993	HB4688 - 54 - LRB103 36580 HLH 66689 b
1994	1994
1995	1995
1996	1996	HB4688- 55 -LRB103 36580 HLH 66689 b HB4688 - 55 - LRB103 36580 HLH 66689 b
1997	1997	HB4688 - 55 - LRB103 36580 HLH 66689 b
1998	1998	1 July 1, 2017, (iii) 100% of the selling price of property
1999	1999	2 transferred as an incident to the sale of service after July 1,
2000	2000	3 2017 and before January 1, 2024, (iv) 90% of the selling price
2001	2001	4 of property transferred as an incident to the sale of service
2002	2002	5 on or after January 1, 2024 and on or before December 31, 2028,
2003	2003	6 and (v) 100% of the selling price of property transferred as an
2004	2004	7 incident to the sale of service after December 31, 2028. If, at
2005	2005	8 any time, however, the tax under this Act on sales of gasohol,
2006	2006	9 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
2007	2007	10 then the tax imposed by this Act applies to 100% of the
2008	2008	11 proceeds of sales of gasohol made during that time.
2009	2009	12 With respect to mid-range ethanol blends, as defined in
2010	2010	13 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2011	2011	14 applies to (i) 80% of the selling price of property
2012	2012	15 transferred as an incident to the sale of service on or after
2013	2013	16 January 1, 2024 and on or before December 31, 2028 and (ii)
2014	2014	17 100% of the selling price of property transferred as an
2015	2015	18 incident to the sale of service after December 31, 2028. If, at
2016	2016	19 any time, however, the tax under this Act on sales of mid-range
2017	2017	20 ethanol blends is imposed at the rate of 1.25%, then the tax
2018	2018	21 imposed by this Act applies to 100% of the selling price of
2019	2019	22 mid-range ethanol blends transferred as an incident to the
2020	2020	23 sale of service during that time.
2021	2021	24 With respect to majority blended ethanol fuel, as defined
2022	2022	25 in the Use Tax Act, the tax imposed by this Act does not apply
2023	2023	26 to the selling price of property transferred as an incident to
2024	2024
2025	2025
2026	2026
2027	2027
2028	2028
2029	2029	HB4688 - 55 - LRB103 36580 HLH 66689 b
2030	2030
2031	2031
2032	2032	HB4688- 56 -LRB103 36580 HLH 66689 b HB4688 - 56 - LRB103 36580 HLH 66689 b
2033	2033	HB4688 - 56 - LRB103 36580 HLH 66689 b
2034	2034	1 the sale of service on or after July 1, 2003 and on or before
2035	2035	2 December 31, 2028 but applies to 100% of the selling price
2036	2036	3 thereafter.
2037	2037	4 With respect to biodiesel blends, as defined in the Use
2038	2038	5 Tax Act, with no less than 1% and no more than 10% biodiesel,
2039	2039	6 the tax imposed by this Act applies to (i) 80% of the selling
2040	2040	7 price of property transferred as an incident to the sale of
2041	2041	8 service on or after July 1, 2003 and on or before December 31,
2042	2042	9 2018 and (ii) 100% of the proceeds of the selling price after
2043	2043	10 December 31, 2018 and before January 1, 2024. On and after
2044	2044	11 January 1, 2024 and on or before December 31, 2030, the
2045	2045	12 taxation of biodiesel, renewable diesel, and biodiesel blends
2046	2046	13 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2047	2047	14 at any time, however, the tax under this Act on sales of
2048	2048	15 biodiesel blends, as defined in the Use Tax Act, with no less
2049	2049	16 than 1% and no more than 10% biodiesel is imposed at the rate
2050	2050	17 of 1.25%, then the tax imposed by this Act applies to 100% of
2051	2051	18 the proceeds of sales of biodiesel blends with no less than 1%
2052	2052	19 and no more than 10% biodiesel made during that time.
2053	2053	20 With respect to biodiesel, as defined in the Use Tax Act,
2054	2054	21 and biodiesel blends, as defined in the Use Tax Act, with more
2055	2055	22 than 10% but no more than 99% biodiesel, the tax imposed by
2056	2056	23 this Act does not apply to the proceeds of the selling price of
2057	2057	24 property transferred as an incident to the sale of service on
2058	2058	25 or after July 1, 2003 and on or before December 31, 2023. On
2059	2059	26 and after January 1, 2024 and on or before December 31, 2030,
2060	2060
2061	2061
2062	2062
2063	2063
2064	2064
2065	2065	HB4688 - 56 - LRB103 36580 HLH 66689 b
2066	2066
2067	2067
2068	2068	HB4688- 57 -LRB103 36580 HLH 66689 b HB4688 - 57 - LRB103 36580 HLH 66689 b
2069	2069	HB4688 - 57 - LRB103 36580 HLH 66689 b
2070	2070	1 the taxation of biodiesel, renewable diesel, and biodiesel
2071	2071	2 blends shall be as provided in Section 3-5.1 of the Use Tax
2072	2072	3 Act.
2073	2073	4 At the election of any registered serviceman made for each
2074	2074	5 fiscal year, sales of service in which the aggregate annual
2075	2075	6 cost price of tangible personal property transferred as an
2076	2076	7 incident to the sales of service is less than 35%, or 75% in
2077	2077	8 the case of servicemen transferring prescription drugs or
2078	2078	9 servicemen engaged in graphic arts production, of the
2079	2079	10 aggregate annual total gross receipts from all sales of
2080	2080	11 service, the tax imposed by this Act shall be based on the
2081	2081	12 serviceman's cost price of the tangible personal property
2082	2082	13 transferred as an incident to the sale of those services.
2083	2083	14 Until July 1, 2022 and from beginning again on July 1, 2023
2084	2084	15 through June 30, 2024, the tax shall be imposed at the rate of
2085	2085	16 1% on food prepared for immediate consumption and transferred
2086	2086	17 incident to a sale of service subject to this Act or the
2087	2087	18 Service Occupation Tax Act by an entity licensed under the
2088	2088	19 Hospital Licensing Act, the Nursing Home Care Act, the
2089	2089	20 Assisted Living and Shared Housing Act, the ID/DD Community
2090	2090	21 Care Act, the MC/DD Act, the Specialized Mental Health
2091	2091	22 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
2092	2092	23 an entity that holds a permit issued pursuant to the Life Care
2093	2093	24 Facilities Act. Until July 1, 2022 and from beginning again on
2094	2094	25 July 1, 2023 through June 30, 2024, the tax shall also be
2095	2095	26 imposed at the rate of 1% on food for human consumption that is
2096	2096
2097	2097
2098	2098
2099	2099
2100	2100
2101	2101	HB4688 - 57 - LRB103 36580 HLH 66689 b
2102	2102
2103	2103
2104	2104	HB4688- 58 -LRB103 36580 HLH 66689 b HB4688 - 58 - LRB103 36580 HLH 66689 b
2105	2105	HB4688 - 58 - LRB103 36580 HLH 66689 b
2106	2106	1 to be consumed off the premises where it is sold (other than
2107	2107	2 alcoholic beverages, food consisting of or infused with adult
2108	2108	3 use cannabis, soft drinks, and food that has been prepared for
2109	2109	4 immediate consumption and is not otherwise included in this
2110	2110	5 paragraph).
2111	2111	6 From Beginning on July 1, 2022 through June 30, 2023, and
2112	2112	7 on and after July 1, 2024, and until July 1, 2023, the tax
2113	2113	8 shall be imposed at the rate of 0% on food prepared for
2114	2114	9 immediate consumption and transferred incident to a sale of
2115	2115	10 service subject to this Act or the Service Occupation Tax Act
2116	2116	11 by an entity licensed under the Hospital Licensing Act, the
2117	2117	12 Nursing Home Care Act, the Assisted Living and Shared Housing
2118	2118	13 Act, the ID/DD Community Care Act, the MC/DD Act, the
2119	2119	14 Specialized Mental Health Rehabilitation Act of 2013, or the
2120	2120	15 Child Care Act of 1969, or an entity that holds a permit issued
2121	2121	16 pursuant to the Life Care Facilities Act is exempt from the tax
2122	2122	17 under this Act. From Beginning on July 1, 2022 through June 30,
2123	2123	18 2023, and on and after July 1, 2024, and until July 1, 2023,
2124	2124	19 the tax shall also be imposed at the rate of 0% on food for
2125	2125	20 human consumption that is to be consumed off the premises
2126	2126	21 where it is sold (other than alcoholic beverages, food
2127	2127	22 consisting of or infused with adult use cannabis, soft drinks,
2128	2128	23 and food that has been prepared for immediate consumption and
2129	2129	24 is not otherwise included in this paragraph) is exempt from
2130	2130	25 the tax under this Act.
2131	2131	26 The tax shall also be imposed at the rate of 1% on
2132	2132
2133	2133
2134	2134
2135	2135
2136	2136
2137	2137	HB4688 - 58 - LRB103 36580 HLH 66689 b
2138	2138
2139	2139
2140	2140	HB4688- 59 -LRB103 36580 HLH 66689 b HB4688 - 59 - LRB103 36580 HLH 66689 b
2141	2141	HB4688 - 59 - LRB103 36580 HLH 66689 b
2142	2142	1 prescription and nonprescription medicines, drugs, medical
2143	2143	2 appliances, products classified as Class III medical devices
2144	2144	3 by the United States Food and Drug Administration that are
2145	2145	4 used for cancer treatment pursuant to a prescription, as well
2146	2146	5 as any accessories and components related to those devices,
2147	2147	6 modifications to a motor vehicle for the purpose of rendering
2148	2148	7 it usable by a person with a disability, and insulin, blood
2149	2149	8 sugar testing materials, syringes, and needles used by human
2150	2150	9 diabetics. For the purposes of this Section, until September
2151	2151	10 1, 2009: the term "soft drinks" means any complete, finished,
2152	2152	11 ready-to-use, non-alcoholic drink, whether carbonated or not,
2153	2153	12 including, but not limited to, soda water, cola, fruit juice,
2154	2154	13 vegetable juice, carbonated water, and all other preparations
2155	2155	14 commonly known as soft drinks of whatever kind or description
2156	2156	15 that are contained in any closed or sealed bottle, can,
2157	2157	16 carton, or container, regardless of size; but "soft drinks"
2158	2158	17 does not include coffee, tea, non-carbonated water, infant
2159	2159	18 formula, milk or milk products as defined in the Grade A
2160	2160	19 Pasteurized Milk and Milk Products Act, or drinks containing
2161	2161	20 50% or more natural fruit or vegetable juice.
2162	2162	21 Notwithstanding any other provisions of this Act,
2163	2163	22 beginning September 1, 2009, "soft drinks" means non-alcoholic
2164	2164	23 beverages that contain natural or artificial sweeteners. "Soft
2165	2165	24 drinks" does not include beverages that contain milk or milk
2166	2166	25 products, soy, rice or similar milk substitutes, or greater
2167	2167	26 than 50% of vegetable or fruit juice by volume.
2168	2168
2169	2169
2170	2170
2171	2171
2172	2172
2173	2173	HB4688 - 59 - LRB103 36580 HLH 66689 b
2174	2174
2175	2175
2176	2176	HB4688- 60 -LRB103 36580 HLH 66689 b HB4688 - 60 - LRB103 36580 HLH 66689 b
2177	2177	HB4688 - 60 - LRB103 36580 HLH 66689 b
2178	2178	1 Until August 1, 2009, and notwithstanding any other
2179	2179	2 provisions of this Act, "food for human consumption that is to
2180	2180	3 be consumed off the premises where it is sold" includes all
2181	2181	4 food sold through a vending machine, except soft drinks and
2182	2182	5 food products that are dispensed hot from a vending machine,
2183	2183	6 regardless of the location of the vending machine. Beginning
2184	2184	7 August 1, 2009, and notwithstanding any other provisions of
2185	2185	8 this Act, "food for human consumption that is to be consumed
2186	2186	9 off the premises where it is sold" includes all food sold
2187	2187	10 through a vending machine, except soft drinks, candy, and food
2188	2188	11 products that are dispensed hot from a vending machine,
2189	2189	12 regardless of the location of the vending machine.
2190	2190	13 Notwithstanding any other provisions of this Act,
2191	2191	14 beginning September 1, 2009, "food for human consumption that
2192	2192	15 is to be consumed off the premises where it is sold" does not
2193	2193	16 include candy. For purposes of this Section, "candy" means a
2194	2194	17 preparation of sugar, honey, or other natural or artificial
2195	2195	18 sweeteners in combination with chocolate, fruits, nuts or
2196	2196	19 other ingredients or flavorings in the form of bars, drops, or
2197	2197	20 pieces. "Candy" does not include any preparation that contains
2198	2198	21 flour or requires refrigeration.
2199	2199	22 Notwithstanding any other provisions of this Act,
2200	2200	23 beginning September 1, 2009, "nonprescription medicines and
2201	2201	24 drugs" does not include grooming and hygiene products. For
2202	2202	25 purposes of this Section, "grooming and hygiene products"
2203	2203	26 includes, but is not limited to, soaps and cleaning solutions,
2204	2204
2205	2205
2206	2206
2207	2207
2208	2208
2209	2209	HB4688 - 60 - LRB103 36580 HLH 66689 b
2210	2210
2211	2211
2212	2212	HB4688- 61 -LRB103 36580 HLH 66689 b HB4688 - 61 - LRB103 36580 HLH 66689 b
2213	2213	HB4688 - 61 - LRB103 36580 HLH 66689 b
2214	2214	1 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2215	2215	2 lotions and screens, unless those products are available by
2216	2216	3 prescription only, regardless of whether the products meet the
2217	2217	4 definition of "over-the-counter-drugs". For the purposes of
2218	2218	5 this paragraph, "over-the-counter-drug" means a drug for human
2219	2219	6 use that contains a label that identifies the product as a drug
2220	2220	7 as required by 21 CFR 201.66. The "over-the-counter-drug"
2221	2221	8 label includes:
2222	2222	9 (A) a "Drug Facts" panel; or
2223	2223	10 (B) a statement of the "active ingredient(s)" with a
2224	2224	11 list of those ingredients contained in the compound,
2225	2225	12 substance or preparation.
2226	2226	13 Beginning on January 1, 2014 (the effective date of Public
2227	2227	14 Act 98-122), "prescription and nonprescription medicines and
2228	2228	15 drugs" includes medical cannabis purchased from a registered
2229	2229	16 dispensing organization under the Compassionate Use of Medical
2230	2230	17 Cannabis Program Act.
2231	2231	18 As used in this Section, "adult use cannabis" means
2232	2232	19 cannabis subject to tax under the Cannabis Cultivation
2233	2233	20 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2234	2234	21 and does not include cannabis subject to tax under the
2235	2235	22 Compassionate Use of Medical Cannabis Program Act.
2236	2236	23 If the property that is acquired from a serviceman is
2237	2237	24 acquired outside Illinois and used outside Illinois before
2238	2238	25 being brought to Illinois for use here and is taxable under
2239	2239	26 this Act, the "selling price" on which the tax is computed
2240	2240
2241	2241
2242	2242
2243	2243
2244	2244
2245	2245	HB4688 - 61 - LRB103 36580 HLH 66689 b
2246	2246
2247	2247
2248	2248	HB4688- 62 -LRB103 36580 HLH 66689 b HB4688 - 62 - LRB103 36580 HLH 66689 b
2249	2249	HB4688 - 62 - LRB103 36580 HLH 66689 b
2250	2250	1 shall be reduced by an amount that represents a reasonable
2251	2251	2 allowance for depreciation for the period of prior
2252	2252	3 out-of-state use.
2253	2253	4 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
2254	2254	5 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
2255	2255	6 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
2256	2256	7 103-154, eff. 6-30-23.)
2257	2257	8 Section 20. The Service Occupation Tax Act is amended by
2258	2258	9 changing Sections 3-5 and 3-10 as follows:
2259	2259	10 (35 ILCS 115/3-5)
2260	2260	11 Sec. 3-5. Exemptions. The following tangible personal
2261	2261	12 property is exempt from the tax imposed by this Act:
2262	2262	13 (1) Personal property sold by a corporation, society,
2263	2263	14 association, foundation, institution, or organization, other
2264	2264	15 than a limited liability company, that is organized and
2265	2265	16 operated as a not-for-profit service enterprise for the
2266	2266	17 benefit of persons 65 years of age or older if the personal
2267	2267	18 property was not purchased by the enterprise for the purpose
2268	2268	19 of resale by the enterprise.
2269	2269	20 (2) Personal property purchased by a not-for-profit
2270	2270	21 Illinois county fair association for use in conducting,
2271	2271	22 operating, or promoting the county fair.
2272	2272	23 (3) Personal property purchased by any not-for-profit arts
2273	2273	24 or cultural organization that establishes, by proof required
2274	2274
2275	2275
2276	2276
2277	2277
2278	2278
2279	2279	HB4688 - 62 - LRB103 36580 HLH 66689 b
2280	2280
2281	2281
2282	2282	HB4688- 63 -LRB103 36580 HLH 66689 b HB4688 - 63 - LRB103 36580 HLH 66689 b
2283	2283	HB4688 - 63 - LRB103 36580 HLH 66689 b
2284	2284	1 by the Department by rule, that it has received an exemption
2285	2285	2 under Section 501(c)(3) of the Internal Revenue Code and that
2286	2286	3 is organized and operated primarily for the presentation or
2287	2287	4 support of arts or cultural programming, activities, or
2288	2288	5 services. These organizations include, but are not limited to,
2289	2289	6 music and dramatic arts organizations such as symphony
2290	2290	7 orchestras and theatrical groups, arts and cultural service
2291	2291	8 organizations, local arts councils, visual arts organizations,
2292	2292	9 and media arts organizations. On and after July 1, 2001 (the
2293	2293	10 effective date of Public Act 92-35), however, an entity
2294	2294	11 otherwise eligible for this exemption shall not make tax-free
2295	2295	12 purchases unless it has an active identification number issued
2296	2296	13 by the Department.
2297	2297	14 (4) Legal tender, currency, medallions, or gold or silver
2298	2298	15 coinage issued by the State of Illinois, the government of the
2299	2299	16 United States of America, or the government of any foreign
2300	2300	17 country, and bullion.
2301	2301	18 (5) Until July 1, 2003 and beginning again on September 1,
2302	2302	19 2004 through August 30, 2014, graphic arts machinery and
2303	2303	20 equipment, including repair and replacement parts, both new
2304	2304	21 and used, and including that manufactured on special order or
2305	2305	22 purchased for lease, certified by the purchaser to be used
2306	2306	23 primarily for graphic arts production. Equipment includes
2307	2307	24 chemicals or chemicals acting as catalysts but only if the
2308	2308	25 chemicals or chemicals acting as catalysts effect a direct and
2309	2309	26 immediate change upon a graphic arts product. Beginning on
2310	2310
2311	2311
2312	2312
2313	2313
2314	2314
2315	2315	HB4688 - 63 - LRB103 36580 HLH 66689 b
2316	2316
2317	2317
2318	2318	HB4688- 64 -LRB103 36580 HLH 66689 b HB4688 - 64 - LRB103 36580 HLH 66689 b
2319	2319	HB4688 - 64 - LRB103 36580 HLH 66689 b
2320	2320	1 July 1, 2017, graphic arts machinery and equipment is included
2321	2321	2 in the manufacturing and assembling machinery and equipment
2322	2322	3 exemption under Section 2 of this Act.
2323	2323	4 (6) Personal property sold by a teacher-sponsored student
2324	2324	5 organization affiliated with an elementary or secondary school
2325	2325	6 located in Illinois.
2326	2326	7 (7) Farm machinery and equipment, both new and used,
2327	2327	8 including that manufactured on special order, certified by the
2328	2328	9 purchaser to be used primarily for production agriculture or
2329	2329	10 State or federal agricultural programs, including individual
2330	2330	11 replacement parts for the machinery and equipment, including
2331	2331	12 machinery and equipment purchased for lease, and including
2332	2332	13 implements of husbandry defined in Section 1-130 of the
2333	2333	14 Illinois Vehicle Code, farm machinery and agricultural
2334	2334	15 chemical and fertilizer spreaders, and nurse wagons required
2335	2335	16 to be registered under Section 3-809 of the Illinois Vehicle
2336	2336	17 Code, but excluding other motor vehicles required to be
2337	2337	18 registered under the Illinois Vehicle Code. Horticultural
2338	2338	19 polyhouses or hoop houses used for propagating, growing, or
2339	2339	20 overwintering plants shall be considered farm machinery and
2340	2340	21 equipment under this item (7). Agricultural chemical tender
2341	2341	22 tanks and dry boxes shall include units sold separately from a
2342	2342	23 motor vehicle required to be licensed and units sold mounted
2343	2343	24 on a motor vehicle required to be licensed if the selling price
2344	2344	25 of the tender is separately stated.
2345	2345	26 Farm machinery and equipment shall include precision
2346	2346
2347	2347
2348	2348
2349	2349
2350	2350
2351	2351	HB4688 - 64 - LRB103 36580 HLH 66689 b
2352	2352
2353	2353
2354	2354	HB4688- 65 -LRB103 36580 HLH 66689 b HB4688 - 65 - LRB103 36580 HLH 66689 b
2355	2355	HB4688 - 65 - LRB103 36580 HLH 66689 b
2356	2356	1 farming equipment that is installed or purchased to be
2357	2357	2 installed on farm machinery and equipment, including, but not
2358	2358	3 limited to, tractors, harvesters, sprayers, planters, seeders,
2359	2359	4 or spreaders. Precision farming equipment includes, but is not
2360	2360	5 limited to, soil testing sensors, computers, monitors,
2361	2361	6 software, global positioning and mapping systems, and other
2362	2362	7 such equipment.
2363	2363	8 Farm machinery and equipment also includes computers,
2364	2364	9 sensors, software, and related equipment used primarily in the
2365	2365	10 computer-assisted operation of production agriculture
2366	2366	11 facilities, equipment, and activities such as, but not limited
2367	2367	12 to, the collection, monitoring, and correlation of animal and
2368	2368	13 crop data for the purpose of formulating animal diets and
2369	2369	14 agricultural chemicals.
2370	2370	15 Beginning on January 1, 2024, farm machinery and equipment
2371	2371	16 also includes electrical power generation equipment used
2372	2372	17 primarily for production agriculture.
2373	2373	18 This item (7) is exempt from the provisions of Section
2374	2374	19 3-55.
2375	2375	20 (8) Until June 30, 2013, fuel and petroleum products sold
2376	2376	21 to or used by an air common carrier, certified by the carrier
2377	2377	22 to be used for consumption, shipment, or storage in the
2378	2378	23 conduct of its business as an air common carrier, for a flight
2379	2379	24 destined for or returning from a location or locations outside
2380	2380	25 the United States without regard to previous or subsequent
2381	2381	26 domestic stopovers.
2382	2382
2383	2383
2384	2384
2385	2385
2386	2386
2387	2387	HB4688 - 65 - LRB103 36580 HLH 66689 b
2388	2388
2389	2389
2390	2390	HB4688- 66 -LRB103 36580 HLH 66689 b HB4688 - 66 - LRB103 36580 HLH 66689 b
2391	2391	HB4688 - 66 - LRB103 36580 HLH 66689 b
2392	2392	1 Beginning July 1, 2013, fuel and petroleum products sold
2393	2393	2 to or used by an air carrier, certified by the carrier to be
2394	2394	3 used for consumption, shipment, or storage in the conduct of
2395	2395	4 its business as an air common carrier, for a flight that (i) is
2396	2396	5 engaged in foreign trade or is engaged in trade between the
2397	2397	6 United States and any of its possessions and (ii) transports
2398	2398	7 at least one individual or package for hire from the city of
2399	2399	8 origination to the city of final destination on the same
2400	2400	9 aircraft, without regard to a change in the flight number of
2401	2401	10 that aircraft.
2402	2402	11 (9) Proceeds of mandatory service charges separately
2403	2403	12 stated on customers' bills for the purchase and consumption of
2404	2404	13 food and beverages, to the extent that the proceeds of the
2405	2405	14 service charge are in fact turned over as tips or as a
2406	2406	15 substitute for tips to the employees who participate directly
2407	2407	16 in preparing, serving, hosting or cleaning up the food or
2408	2408	17 beverage function with respect to which the service charge is
2409	2409	18 imposed.
2410	2410	19 (10) Until July 1, 2003, oil field exploration, drilling,
2411	2411	20 and production equipment, including (i) rigs and parts of
2412	2412	21 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2413	2413	22 pipe and tubular goods, including casing and drill strings,
2414	2414	23 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2415	2415	24 lines, (v) any individual replacement part for oil field
2416	2416	25 exploration, drilling, and production equipment, and (vi)
2417	2417	26 machinery and equipment purchased for lease; but excluding
2418	2418
2419	2419
2420	2420
2421	2421
2422	2422
2423	2423	HB4688 - 66 - LRB103 36580 HLH 66689 b
2424	2424
2425	2425
2426	2426	HB4688- 67 -LRB103 36580 HLH 66689 b HB4688 - 67 - LRB103 36580 HLH 66689 b
2427	2427	HB4688 - 67 - LRB103 36580 HLH 66689 b
2428	2428	1 motor vehicles required to be registered under the Illinois
2429	2429	2 Vehicle Code.
2430	2430	3 (11) Photoprocessing machinery and equipment, including
2431	2431	4 repair and replacement parts, both new and used, including
2432	2432	5 that manufactured on special order, certified by the purchaser
2433	2433	6 to be used primarily for photoprocessing, and including
2434	2434	7 photoprocessing machinery and equipment purchased for lease.
2435	2435	8 (12) Until July 1, 2028, coal and aggregate exploration,
2436	2436	9 mining, off-highway hauling, processing, maintenance, and
2437	2437	10 reclamation equipment, including replacement parts and
2438	2438	11 equipment, and including equipment purchased for lease, but
2439	2439	12 excluding motor vehicles required to be registered under the
2440	2440	13 Illinois Vehicle Code. The changes made to this Section by
2441	2441	14 Public Act 97-767 apply on and after July 1, 2003, but no claim
2442	2442	15 for credit or refund is allowed on or after August 16, 2013
2443	2443	16 (the effective date of Public Act 98-456) for such taxes paid
2444	2444	17 during the period beginning July 1, 2003 and ending on August
2445	2445	18 16, 2013 (the effective date of Public Act 98-456).
2446	2446	19 (13) Beginning January 1, 1992 and through June 30, 2016,
2447	2447	20 food for human consumption that is to be consumed off the
2448	2448	21 premises where it is sold (other than alcoholic beverages,
2449	2449	22 soft drinks and food that has been prepared for immediate
2450	2450	23 consumption) and prescription and non-prescription medicines,
2451	2451	24 drugs, medical appliances, and insulin, urine testing
2452	2452	25 materials, syringes, and needles used by diabetics, for human
2453	2453	26 use, when purchased for use by a person receiving medical
2454	2454
2455	2455
2456	2456
2457	2457
2458	2458
2459	2459	HB4688 - 67 - LRB103 36580 HLH 66689 b
2460	2460
2461	2461
2462	2462	HB4688- 68 -LRB103 36580 HLH 66689 b HB4688 - 68 - LRB103 36580 HLH 66689 b
2463	2463	HB4688 - 68 - LRB103 36580 HLH 66689 b
2464	2464	1 assistance under Article V of the Illinois Public Aid Code who
2465	2465	2 resides in a licensed long-term care facility, as defined in
2466	2466	3 the Nursing Home Care Act, or in a licensed facility as defined
2467	2467	4 in the ID/DD Community Care Act, the MC/DD Act, or the
2468	2468	5 Specialized Mental Health Rehabilitation Act of 2013.
2469	2469	6 (14) Semen used for artificial insemination of livestock
2470	2470	7 for direct agricultural production.
2471	2471	8 (15) Horses, or interests in horses, registered with and
2472	2472	9 meeting the requirements of any of the Arabian Horse Club
2473	2473	10 Registry of America, Appaloosa Horse Club, American Quarter
2474	2474	11 Horse Association, United States Trotting Association, or
2475	2475	12 Jockey Club, as appropriate, used for purposes of breeding or
2476	2476	13 racing for prizes. This item (15) is exempt from the
2477	2477	14 provisions of Section 3-55, and the exemption provided for
2478	2478	15 under this item (15) applies for all periods beginning May 30,
2479	2479	16 1995, but no claim for credit or refund is allowed on or after
2480	2480	17 January 1, 2008 (the effective date of Public Act 95-88) for
2481	2481	18 such taxes paid during the period beginning May 30, 2000 and
2482	2482	19 ending on January 1, 2008 (the effective date of Public Act
2483	2483	20 95-88).
2484	2484	21 (16) Computers and communications equipment utilized for
2485	2485	22 any hospital purpose and equipment used in the diagnosis,
2486	2486	23 analysis, or treatment of hospital patients sold to a lessor
2487	2487	24 who leases the equipment, under a lease of one year or longer
2488	2488	25 executed or in effect at the time of the purchase, to a
2489	2489	26 hospital that has been issued an active tax exemption
2490	2490
2491	2491
2492	2492
2493	2493
2494	2494
2495	2495	HB4688 - 68 - LRB103 36580 HLH 66689 b
2496	2496
2497	2497
2498	2498	HB4688- 69 -LRB103 36580 HLH 66689 b HB4688 - 69 - LRB103 36580 HLH 66689 b
2499	2499	HB4688 - 69 - LRB103 36580 HLH 66689 b
2500	2500	1 identification number by the Department under Section 1g of
2501	2501	2 the Retailers' Occupation Tax Act.
2502	2502	3 (17) Personal property sold to a lessor who leases the
2503	2503	4 property, under a lease of one year or longer executed or in
2504	2504	5 effect at the time of the purchase, to a governmental body that
2505	2505	6 has been issued an active tax exemption identification number
2506	2506	7 by the Department under Section 1g of the Retailers'
2507	2507	8 Occupation Tax Act.
2508	2508	9 (18) Beginning with taxable years ending on or after
2509	2509	10 December 31, 1995 and ending with taxable years ending on or
2510	2510	11 before December 31, 2004, personal property that is donated
2511	2511	12 for disaster relief to be used in a State or federally declared
2512	2512	13 disaster area in Illinois or bordering Illinois by a
2513	2513	14 manufacturer or retailer that is registered in this State to a
2514	2514	15 corporation, society, association, foundation, or institution
2515	2515	16 that has been issued a sales tax exemption identification
2516	2516	17 number by the Department that assists victims of the disaster
2517	2517	18 who reside within the declared disaster area.
2518	2518	19 (19) Beginning with taxable years ending on or after
2519	2519	20 December 31, 1995 and ending with taxable years ending on or
2520	2520	21 before December 31, 2004, personal property that is used in
2521	2521	22 the performance of infrastructure repairs in this State,
2522	2522	23 including, but not limited to, municipal roads and streets,
2523	2523	24 access roads, bridges, sidewalks, waste disposal systems,
2524	2524	25 water and sewer line extensions, water distribution and
2525	2525	26 purification facilities, storm water drainage and retention
2526	2526
2527	2527
2528	2528
2529	2529
2530	2530
2531	2531	HB4688 - 69 - LRB103 36580 HLH 66689 b
2532	2532
2533	2533
2534	2534	HB4688- 70 -LRB103 36580 HLH 66689 b HB4688 - 70 - LRB103 36580 HLH 66689 b
2535	2535	HB4688 - 70 - LRB103 36580 HLH 66689 b
2536	2536	1 facilities, and sewage treatment facilities, resulting from a
2537	2537	2 State or federally declared disaster in Illinois or bordering
2538	2538	3 Illinois when such repairs are initiated on facilities located
2539	2539	4 in the declared disaster area within 6 months after the
2540	2540	5 disaster.
2541	2541	6 (20) Beginning July 1, 1999, game or game birds sold at a
2542	2542	7 "game breeding and hunting preserve area" as that term is used
2543	2543	8 in the Wildlife Code. This paragraph is exempt from the
2544	2544	9 provisions of Section 3-55.
2545	2545	10 (21) A motor vehicle, as that term is defined in Section
2546	2546	11 1-146 of the Illinois Vehicle Code, that is donated to a
2547	2547	12 corporation, limited liability company, society, association,
2548	2548	13 foundation, or institution that is determined by the
2549	2549	14 Department to be organized and operated exclusively for
2550	2550	15 educational purposes. For purposes of this exemption, "a
2551	2551	16 corporation, limited liability company, society, association,
2552	2552	17 foundation, or institution organized and operated exclusively
2553	2553	18 for educational purposes" means all tax-supported public
2554	2554	19 schools, private schools that offer systematic instruction in
2555	2555	20 useful branches of learning by methods common to public
2556	2556	21 schools and that compare favorably in their scope and
2557	2557	22 intensity with the course of study presented in tax-supported
2558	2558	23 schools, and vocational or technical schools or institutes
2559	2559	24 organized and operated exclusively to provide a course of
2560	2560	25 study of not less than 6 weeks duration and designed to prepare
2561	2561	26 individuals to follow a trade or to pursue a manual,
2562	2562
2563	2563
2564	2564
2565	2565
2566	2566
2567	2567	HB4688 - 70 - LRB103 36580 HLH 66689 b
2568	2568
2569	2569
2570	2570	HB4688- 71 -LRB103 36580 HLH 66689 b HB4688 - 71 - LRB103 36580 HLH 66689 b
2571	2571	HB4688 - 71 - LRB103 36580 HLH 66689 b
2572	2572	1 technical, mechanical, industrial, business, or commercial
2573	2573	2 occupation.
2574	2574	3 (22) Beginning January 1, 2000, personal property,
2575	2575	4 including food, purchased through fundraising events for the
2576	2576	5 benefit of a public or private elementary or secondary school,
2577	2577	6 a group of those schools, or one or more school districts if
2578	2578	7 the events are sponsored by an entity recognized by the school
2579	2579	8 district that consists primarily of volunteers and includes
2580	2580	9 parents and teachers of the school children. This paragraph
2581	2581	10 does not apply to fundraising events (i) for the benefit of
2582	2582	11 private home instruction or (ii) for which the fundraising
2583	2583	12 entity purchases the personal property sold at the events from
2584	2584	13 another individual or entity that sold the property for the
2585	2585	14 purpose of resale by the fundraising entity and that profits
2586	2586	15 from the sale to the fundraising entity. This paragraph is
2587	2587	16 exempt from the provisions of Section 3-55.
2588	2588	17 (23) Beginning January 1, 2000 and through December 31,
2589	2589	18 2001, new or used automatic vending machines that prepare and
2590	2590	19 serve hot food and beverages, including coffee, soup, and
2591	2591	20 other items, and replacement parts for these machines.
2592	2592	21 Beginning January 1, 2002 and through June 30, 2003, machines
2593	2593	22 and parts for machines used in commercial, coin-operated
2594	2594	23 amusement and vending business if a use or occupation tax is
2595	2595	24 paid on the gross receipts derived from the use of the
2596	2596	25 commercial, coin-operated amusement and vending machines. This
2597	2597	26 paragraph is exempt from the provisions of Section 3-55.
2598	2598
2599	2599
2600	2600
2601	2601
2602	2602
2603	2603	HB4688 - 71 - LRB103 36580 HLH 66689 b
2604	2604
2605	2605
2606	2606	HB4688- 72 -LRB103 36580 HLH 66689 b HB4688 - 72 - LRB103 36580 HLH 66689 b
2607	2607	HB4688 - 72 - LRB103 36580 HLH 66689 b
2608	2608	1 (24) Beginning on August 2, 2001 (the effective date of
2609	2609	2 Public Act 92-227), computers and communications equipment
2610	2610	3 utilized for any hospital purpose and equipment used in the
2611	2611	4 diagnosis, analysis, or treatment of hospital patients sold to
2612	2612	5 a lessor who leases the equipment, under a lease of one year or
2613	2613	6 longer executed or in effect at the time of the purchase, to a
2614	2614	7 hospital that has been issued an active tax exemption
2615	2615	8 identification number by the Department under Section 1g of
2616	2616	9 the Retailers' Occupation Tax Act. This paragraph is exempt
2617	2617	10 from the provisions of Section 3-55.
2618	2618	11 (25) Beginning on August 2, 2001 (the effective date of
2619	2619	12 Public Act 92-227), personal property sold to a lessor who
2620	2620	13 leases the property, under a lease of one year or longer
2621	2621	14 executed or in effect at the time of the purchase, to a
2622	2622	15 governmental body that has been issued an active tax exemption
2623	2623	16 identification number by the Department under Section 1g of
2624	2624	17 the Retailers' Occupation Tax Act. This paragraph is exempt
2625	2625	18 from the provisions of Section 3-55.
2626	2626	19 (26) Beginning on January 1, 2002 and through June 30,
2627	2627	20 2016, tangible personal property purchased from an Illinois
2628	2628	21 retailer by a taxpayer engaged in centralized purchasing
2629	2629	22 activities in Illinois who will, upon receipt of the property
2630	2630	23 in Illinois, temporarily store the property in Illinois (i)
2631	2631	24 for the purpose of subsequently transporting it outside this
2632	2632	25 State for use or consumption thereafter solely outside this
2633	2633	26 State or (ii) for the purpose of being processed, fabricated,
2634	2634
2635	2635
2636	2636
2637	2637
2638	2638
2639	2639	HB4688 - 72 - LRB103 36580 HLH 66689 b
2640	2640
2641	2641
2642	2642	HB4688- 73 -LRB103 36580 HLH 66689 b HB4688 - 73 - LRB103 36580 HLH 66689 b
2643	2643	HB4688 - 73 - LRB103 36580 HLH 66689 b
2644	2644	1 or manufactured into, attached to, or incorporated into other
2645	2645	2 tangible personal property to be transported outside this
2646	2646	3 State and thereafter used or consumed solely outside this
2647	2647	4 State. The Director of Revenue shall, pursuant to rules
2648	2648	5 adopted in accordance with the Illinois Administrative
2649	2649	6 Procedure Act, issue a permit to any taxpayer in good standing
2650	2650	7 with the Department who is eligible for the exemption under
2651	2651	8 this paragraph (26). The permit issued under this paragraph
2652	2652	9 (26) shall authorize the holder, to the extent and in the
2653	2653	10 manner specified in the rules adopted under this Act, to
2654	2654	11 purchase tangible personal property from a retailer exempt
2655	2655	12 from the taxes imposed by this Act. Taxpayers shall maintain
2656	2656	13 all necessary books and records to substantiate the use and
2657	2657	14 consumption of all such tangible personal property outside of
2658	2658	15 the State of Illinois.
2659	2659	16 (27) Beginning January 1, 2008, tangible personal property
2660	2660	17 used in the construction or maintenance of a community water
2661	2661	18 supply, as defined under Section 3.145 of the Environmental
2662	2662	19 Protection Act, that is operated by a not-for-profit
2663	2663	20 corporation that holds a valid water supply permit issued
2664	2664	21 under Title IV of the Environmental Protection Act. This
2665	2665	22 paragraph is exempt from the provisions of Section 3-55.
2666	2666	23 (28) Tangible personal property sold to a
2667	2667	24 public-facilities corporation, as described in Section
2668	2668	25 11-65-10 of the Illinois Municipal Code, for purposes of
2669	2669	26 constructing or furnishing a municipal convention hall, but
2670	2670
2671	2671
2672	2672
2673	2673
2674	2674
2675	2675	HB4688 - 73 - LRB103 36580 HLH 66689 b
2676	2676
2677	2677
2678	2678	HB4688- 74 -LRB103 36580 HLH 66689 b HB4688 - 74 - LRB103 36580 HLH 66689 b
2679	2679	HB4688 - 74 - LRB103 36580 HLH 66689 b
2680	2680	1 only if the legal title to the municipal convention hall is
2681	2681	2 transferred to the municipality without any further
2682	2682	3 consideration by or on behalf of the municipality at the time
2683	2683	4 of the completion of the municipal convention hall or upon the
2684	2684	5 retirement or redemption of any bonds or other debt
2685	2685	6 instruments issued by the public-facilities corporation in
2686	2686	7 connection with the development of the municipal convention
2687	2687	8 hall. This exemption includes existing public-facilities
2688	2688	9 corporations as provided in Section 11-65-25 of the Illinois
2689	2689	10 Municipal Code. This paragraph is exempt from the provisions
2690	2690	11 of Section 3-55.
2691	2691	12 (29) Beginning January 1, 2010 and continuing through
2692	2692	13 December 31, 2029, materials, parts, equipment, components,
2693	2693	14 and furnishings incorporated into or upon an aircraft as part
2694	2694	15 of the modification, refurbishment, completion, replacement,
2695	2695	16 repair, or maintenance of the aircraft. This exemption
2696	2696	17 includes consumable supplies used in the modification,
2697	2697	18 refurbishment, completion, replacement, repair, and
2698	2698	19 maintenance of aircraft. However, until January 1, 2024, this
2699	2699	20 exemption excludes any materials, parts, equipment,
2700	2700	21 components, and consumable supplies used in the modification,
2701	2701	22 replacement, repair, and maintenance of aircraft engines or
2702	2702	23 power plants, whether such engines or power plants are
2703	2703	24 installed or uninstalled upon any such aircraft. "Consumable
2704	2704	25 supplies" include, but are not limited to, adhesive, tape,
2705	2705	26 sandpaper, general purpose lubricants, cleaning solution,
2706	2706
2707	2707
2708	2708
2709	2709
2710	2710
2711	2711	HB4688 - 74 - LRB103 36580 HLH 66689 b
2712	2712
2713	2713
2714	2714	HB4688- 75 -LRB103 36580 HLH 66689 b HB4688 - 75 - LRB103 36580 HLH 66689 b
2715	2715	HB4688 - 75 - LRB103 36580 HLH 66689 b
2716	2716	1 latex gloves, and protective films.
2717	2717	2 Beginning January 1, 2010 and continuing through December
2718	2718	3 31, 2023, this exemption applies only to the transfer of
2719	2719	4 qualifying tangible personal property incident to the
2720	2720	5 modification, refurbishment, completion, replacement, repair,
2721	2721	6 or maintenance of an aircraft by persons who (i) hold an Air
2722	2722	7 Agency Certificate and are empowered to operate an approved
2723	2723	8 repair station by the Federal Aviation Administration, (ii)
2724	2724	9 have a Class IV Rating, and (iii) conduct operations in
2725	2725	10 accordance with Part 145 of the Federal Aviation Regulations.
2726	2726	11 The exemption does not include aircraft operated by a
2727	2727	12 commercial air carrier providing scheduled passenger air
2728	2728	13 service pursuant to authority issued under Part 121 or Part
2729	2729	14 129 of the Federal Aviation Regulations. From January 1, 2024
2730	2730	15 through December 31, 2029, this exemption applies only to the
2731	2731	16 use of qualifying tangible personal property by: (A) persons
2732	2732	17 who modify, refurbish, complete, repair, replace, or maintain
2733	2733	18 aircraft and who (i) hold an Air Agency Certificate and are
2734	2734	19 empowered to operate an approved repair station by the Federal
2735	2735	20 Aviation Administration, (ii) have a Class IV Rating, and
2736	2736	21 (iii) conduct operations in accordance with Part 145 of the
2737	2737	22 Federal Aviation Regulations; and (B) persons who engage in
2738	2738	23 the modification, replacement, repair, and maintenance of
2739	2739	24 aircraft engines or power plants without regard to whether or
2740	2740	25 not those persons meet the qualifications of item (A).
2741	2741	26 The changes made to this paragraph (29) by Public Act
2742	2742
2743	2743
2744	2744
2745	2745
2746	2746
2747	2747	HB4688 - 75 - LRB103 36580 HLH 66689 b
2748	2748
2749	2749
2750	2750	HB4688- 76 -LRB103 36580 HLH 66689 b HB4688 - 76 - LRB103 36580 HLH 66689 b
2751	2751	HB4688 - 76 - LRB103 36580 HLH 66689 b
2752	2752	1 98-534 are declarative of existing law. It is the intent of the
2753	2753	2 General Assembly that the exemption under this paragraph (29)
2754	2754	3 applies continuously from January 1, 2010 through December 31,
2755	2755	4 2024; however, no claim for credit or refund is allowed for
2756	2756	5 taxes paid as a result of the disallowance of this exemption on
2757	2757	6 or after January 1, 2015 and prior to February 5, 2020 (the
2758	2758	7 effective date of Public Act 101-629).
2759	2759	8 (30) Beginning January 1, 2017 and through December 31,
2760	2760	9 2026, menstrual pads, tampons, and menstrual cups.
2761	2761	10 (31) Tangible personal property transferred to a purchaser
2762	2762	11 who is exempt from tax by operation of federal law. This
2763	2763	12 paragraph is exempt from the provisions of Section 3-55.
2764	2764	13 (32) Qualified tangible personal property used in the
2765	2765	14 construction or operation of a data center that has been
2766	2766	15 granted a certificate of exemption by the Department of
2767	2767	16 Commerce and Economic Opportunity, whether that tangible
2768	2768	17 personal property is purchased by the owner, operator, or
2769	2769	18 tenant of the data center or by a contractor or subcontractor
2770	2770	19 of the owner, operator, or tenant. Data centers that would
2771	2771	20 have qualified for a certificate of exemption prior to January
2772	2772	21 1, 2020 had Public Act 101-31 been in effect, may apply for and
2773	2773	22 obtain an exemption for subsequent purchases of computer
2774	2774	23 equipment or enabling software purchased or leased to upgrade,
2775	2775	24 supplement, or replace computer equipment or enabling software
2776	2776	25 purchased or leased in the original investment that would have
2777	2777	26 qualified.
2778	2778
2779	2779
2780	2780
2781	2781
2782	2782
2783	2783	HB4688 - 76 - LRB103 36580 HLH 66689 b
2784	2784
2785	2785
2786	2786	HB4688- 77 -LRB103 36580 HLH 66689 b HB4688 - 77 - LRB103 36580 HLH 66689 b
2787	2787	HB4688 - 77 - LRB103 36580 HLH 66689 b
2788	2788	1 The Department of Commerce and Economic Opportunity shall
2789	2789	2 grant a certificate of exemption under this item (32) to
2790	2790	3 qualified data centers as defined by Section 605-1025 of the
2791	2791	4 Department of Commerce and Economic Opportunity Law of the
2792	2792	5 Civil Administrative Code of Illinois.
2793	2793	6 For the purposes of this item (32):
2794	2794	7 "Data center" means a building or a series of
2795	2795	8 buildings rehabilitated or constructed to house working
2796	2796	9 servers in one physical location or multiple sites within
2797	2797	10 the State of Illinois.
2798	2798	11 "Qualified tangible personal property" means:
2799	2799	12 electrical systems and equipment; climate control and
2800	2800	13 chilling equipment and systems; mechanical systems and
2801	2801	14 equipment; monitoring and secure systems; emergency
2802	2802	15 generators; hardware; computers; servers; data storage
2803	2803	16 devices; network connectivity equipment; racks; cabinets;
2804	2804	17 telecommunications cabling infrastructure; raised floor
2805	2805	18 systems; peripheral components or systems; software;
2806	2806	19 mechanical, electrical, or plumbing systems; battery
2807	2807	20 systems; cooling systems and towers; temperature control
2808	2808	21 systems; other cabling; and other data center
2809	2809	22 infrastructure equipment and systems necessary to operate
2810	2810	23 qualified tangible personal property, including fixtures;
2811	2811	24 and component parts of any of the foregoing, including
2812	2812	25 installation, maintenance, repair, refurbishment, and
2813	2813	26 replacement of qualified tangible personal property to
2814	2814
2815	2815
2816	2816
2817	2817
2818	2818
2819	2819	HB4688 - 77 - LRB103 36580 HLH 66689 b
2820	2820
2821	2821
2822	2822	HB4688- 78 -LRB103 36580 HLH 66689 b HB4688 - 78 - LRB103 36580 HLH 66689 b
2823	2823	HB4688 - 78 - LRB103 36580 HLH 66689 b
2824	2824	1 generate, transform, transmit, distribute, or manage
2825	2825	2 electricity necessary to operate qualified tangible
2826	2826	3 personal property; and all other tangible personal
2827	2827	4 property that is essential to the operations of a computer
2828	2828	5 data center. The term "qualified tangible personal
2829	2829	6 property" also includes building materials physically
2830	2830	7 incorporated into in to the qualifying data center. To
2831	2831	8 document the exemption allowed under this Section, the
2832	2832	9 retailer must obtain from the purchaser a copy of the
2833	2833	10 certificate of eligibility issued by the Department of
2834	2834	11 Commerce and Economic Opportunity.
2835	2835	12 This item (32) is exempt from the provisions of Section
2836	2836	13 3-55.
2837	2837	14 (33) Beginning July 1, 2022, breast pumps, breast pump
2838	2838	15 collection and storage supplies, and breast pump kits. This
2839	2839	16 item (33) is exempt from the provisions of Section 3-55. As
2840	2840	17 used in this item (33):
2841	2841	18 "Breast pump" means an electrically controlled or
2842	2842	19 manually controlled pump device designed or marketed to be
2843	2843	20 used to express milk from a human breast during lactation,
2844	2844	21 including the pump device and any battery, AC adapter, or
2845	2845	22 other power supply unit that is used to power the pump
2846	2846	23 device and is packaged and sold with the pump device at the
2847	2847	24 time of sale.
2848	2848	25 "Breast pump collection and storage supplies" means
2849	2849	26 items of tangible personal property designed or marketed
2850	2850
2851	2851
2852	2852
2853	2853
2854	2854
2855	2855	HB4688 - 78 - LRB103 36580 HLH 66689 b
2856	2856
2857	2857
2858	2858	HB4688- 79 -LRB103 36580 HLH 66689 b HB4688 - 79 - LRB103 36580 HLH 66689 b
2859	2859	HB4688 - 79 - LRB103 36580 HLH 66689 b
2860	2860	1 to be used in conjunction with a breast pump to collect
2861	2861	2 milk expressed from a human breast and to store collected
2862	2862	3 milk until it is ready for consumption.
2863	2863	4 "Breast pump collection and storage supplies"
2864	2864	5 includes, but is not limited to: breast shields and breast
2865	2865	6 shield connectors; breast pump tubes and tubing adapters;
2866	2866	7 breast pump valves and membranes; backflow protectors and
2867	2867	8 backflow protector adaptors; bottles and bottle caps
2868	2868	9 specific to the operation of the breast pump; and breast
2869	2869	10 milk storage bags.
2870	2870	11 "Breast pump collection and storage supplies" does not
2871	2871	12 include: (1) bottles and bottle caps not specific to the
2872	2872	13 operation of the breast pump; (2) breast pump travel bags
2873	2873	14 and other similar carrying accessories, including ice
2874	2874	15 packs, labels, and other similar products; (3) breast pump
2875	2875	16 cleaning supplies; (4) nursing bras, bra pads, breast
2876	2876	17 shells, and other similar products; and (5) creams,
2877	2877	18 ointments, and other similar products that relieve
2878	2878	19 breastfeeding-related symptoms or conditions of the
2879	2879	20 breasts or nipples, unless sold as part of a breast pump
2880	2880	21 kit that is pre-packaged by the breast pump manufacturer
2881	2881	22 or distributor.
2882	2882	23 "Breast pump kit" means a kit that: (1) contains no
2883	2883	24 more than a breast pump, breast pump collection and
2884	2884	25 storage supplies, a rechargeable battery for operating the
2885	2885	26 breast pump, a breastmilk cooler, bottle stands, ice
2886	2886
2887	2887
2888	2888
2889	2889
2890	2890
2891	2891	HB4688 - 79 - LRB103 36580 HLH 66689 b
2892	2892
2893	2893
2894	2894	HB4688- 80 -LRB103 36580 HLH 66689 b HB4688 - 80 - LRB103 36580 HLH 66689 b
2895	2895	HB4688 - 80 - LRB103 36580 HLH 66689 b
2896	2896	1 packs, and a breast pump carrying case; and (2) is
2897	2897	2 pre-packaged as a breast pump kit by the breast pump
2898	2898	3 manufacturer or distributor.
2899	2899	4 (34) Tangible personal property sold by or on behalf of
2900	2900	5 the State Treasurer pursuant to the Revised Uniform Unclaimed
2901	2901	6 Property Act. This item (34) is exempt from the provisions of
2902	2902	7 Section 3-55.
2903	2903	8 (35) Beginning on January 1, 2024, tangible personal
2904	2904	9 property purchased by an active duty member of the armed
2905	2905	10 forces of the United States who presents valid military
2906	2906	11 identification and purchases the property using a form of
2907	2907	12 payment where the federal government is the payor. The member
2908	2908	13 of the armed forces must complete, at the point of sale, a form
2909	2909	14 prescribed by the Department of Revenue documenting that the
2910	2910	15 transaction is eligible for the exemption under this
2911	2911	16 paragraph. Retailers must keep the form as documentation of
2912	2912	17 the exemption in their records for a period of not less than 6
2913	2913	18 years. "Armed forces of the United States" means the United
2914	2914	19 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2915	2915	20 This paragraph is exempt from the provisions of Section 3-55.
2916	2916	21 (36) Beginning on July 1, 2024, food prepared for
2917	2917	22 immediate consumption and transferred incident to a sale of
2918	2918	23 service subject to this Act or the Service Occupation Tax Act
2919	2919	24 by an entity licensed under the Hospital Licensing Act, the
2920	2920	25 Nursing Home Care Act, the Assisted Living and Shared Housing
2921	2921	26 Act, the ID/DD Community Care Act, the MC/DD Act, the
2922	2922
2923	2923
2924	2924
2925	2925
2926	2926
2927	2927	HB4688 - 80 - LRB103 36580 HLH 66689 b
2928	2928
2929	2929
2930	2930	HB4688- 81 -LRB103 36580 HLH 66689 b HB4688 - 81 - LRB103 36580 HLH 66689 b
2931	2931	HB4688 - 81 - LRB103 36580 HLH 66689 b
2932	2932	1 Specialized Mental Health Rehabilitation Act of 2013, or the
2933	2933	2 Child Care Act of 1969 or an entity that holds a permit issued
2934	2934	3 pursuant to the Life Care Facilities Act. This item (36) is
2935	2935	4 exempt from the provisions of Section 3-55.
2936	2936	5 (37) Beginning on July 1, 2024, food for human consumption
2937	2937	6 that is to be consumed off the premises where it is sold (other
2938	2938	7 than alcoholic beverages, food consisting of or infused with
2939	2939	8 adult use cannabis, soft drinks, and food that has been
2940	2940	9 prepared for immediate consumption) This item (37
2941	2941	) is exempt
2942	2942	10 from the provisions of Section 3-55.
2943	2943	11 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2944	2944	12 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2945	2945	13 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2946	2946	14 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2947	2947	15 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2948	2948	16 revised 12-12-23.)
2949	2949	17 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2950	2950	18 Sec. 3-10. Rate of tax. Unless otherwise provided in this
2951	2951	19 Section, the tax imposed by this Act is at the rate of 6.25% of
2952	2952	20 the "selling price", as defined in Section 2 of the Service Use
2953	2953	21 Tax Act, of the tangible personal property. For the purpose of
2954	2954	22 computing this tax, in no event shall the "selling price" be
2955	2955	23 less than the cost price to the serviceman of the tangible
2956	2956	24 personal property transferred. The selling price of each item
2957	2957	25 of tangible personal property transferred as an incident of a
2958	2958
2959	2959
2960	2960
2961	2961
2962	2962
2963	2963	HB4688 - 81 - LRB103 36580 HLH 66689 b
2964	2964
2965	2965
2966	2966	HB4688- 82 -LRB103 36580 HLH 66689 b HB4688 - 82 - LRB103 36580 HLH 66689 b
2967	2967	HB4688 - 82 - LRB103 36580 HLH 66689 b
2968	2968	1 sale of service may be shown as a distinct and separate item on
2969	2969	2 the serviceman's billing to the service customer. If the
2970	2970	3 selling price is not so shown, the selling price of the
2971	2971	4 tangible personal property is deemed to be 50% of the
2972	2972	5 serviceman's entire billing to the service customer. When,
2973	2973	6 however, a serviceman contracts to design, develop, and
2974	2974	7 produce special order machinery or equipment, the tax imposed
2975	2975	8 by this Act shall be based on the serviceman's cost price of
2976	2976	9 the tangible personal property transferred incident to the
2977	2977	10 completion of the contract.
2978	2978	11 Beginning on July 1, 2000 and through December 31, 2000,
2979	2979	12 with respect to motor fuel, as defined in Section 1.1 of the
2980	2980	13 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2981	2981	14 the Use Tax Act, the tax is imposed at the rate of 1.25%.
2982	2982	15 Beginning 30 days after the effective date of this
2983	2983	16 amendatory Act of the 103rd General Assembly, with respect to:
2984	2984	17 motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
2985	2985	18 Law; gasohol, as defined in Section 3-40 of the Use Tax Act;
2986	2986	19 majority blended ethanol fuel; and biodiesel and biodiesel
2987	2987	20 blends, the tax imposed under this Act may not exceed the cents
2988	2988	21 per gallon rate established by the Department under subsection
2989	2989	22 (e) of Section 2d of the Retailers' Occupation Tax Act. With
2990	2990	23 respect to the tax imposed on biodiesel blends and gasohol,
2991	2991	24 the maximum cents per gallon rate shall include the reduction
2992	2992	25 allowed in subsection (e) of Section 2d of the Retailers'
2993	2993	26 Occupation Tax Act.
2994	2994
2995	2995
2996	2996
2997	2997
2998	2998
2999	2999	HB4688 - 82 - LRB103 36580 HLH 66689 b
3000	3000
3001	3001
3002	3002	HB4688- 83 -LRB103 36580 HLH 66689 b HB4688 - 83 - LRB103 36580 HLH 66689 b
3003	3003	HB4688 - 83 - LRB103 36580 HLH 66689 b
3004	3004	1 With respect to gasohol, as defined in the Use Tax Act, the
3005	3005	2 tax imposed by this Act shall apply to (i) 70% of the cost
3006	3006	3 price of property transferred as an incident to the sale of
3007	3007	4 service on or after January 1, 1990, and before July 1, 2003,
3008	3008	5 (ii) 80% of the selling price of property transferred as an
3009	3009	6 incident to the sale of service on or after July 1, 2003 and on
3010	3010	7 or before July 1, 2017, (iii) 100% of the selling price of
3011	3011	8 property transferred as an incident to the sale of service
3012	3012	9 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
3013	3013	10 the selling price of property transferred as an incident to
3014	3014	11 the sale of service on or after January 1, 2024 and on or
3015	3015	12 before December 31, 2028, and (v) 100% of the selling price of
3016	3016	13 property transferred as an incident to the sale of service
3017	3017	14 after December 31, 2028. If, at any time, however, the tax
3018	3018	15 under this Act on sales of gasohol, as defined in the Use Tax
3019	3019	16 Act, is imposed at the rate of 1.25%, then the tax imposed by
3020	3020	17 this Act applies to 100% of the proceeds of sales of gasohol
3021	3021	18 made during that time.
3022	3022	19 With respect to mid-range ethanol blends, as defined in
3023	3023	20 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
3024	3024	21 applies to (i) 80% of the selling price of property
3025	3025	22 transferred as an incident to the sale of service on or after
3026	3026	23 January 1, 2024 and on or before December 31, 2028 and (ii)
3027	3027	24 100% of the selling price of property transferred as an
3028	3028	25 incident to the sale of service after December 31, 2028. If, at
3029	3029	26 any time, however, the tax under this Act on sales of mid-range
3030	3030
3031	3031
3032	3032
3033	3033
3034	3034
3035	3035	HB4688 - 83 - LRB103 36580 HLH 66689 b
3036	3036
3037	3037
3038	3038	HB4688- 84 -LRB103 36580 HLH 66689 b HB4688 - 84 - LRB103 36580 HLH 66689 b
3039	3039	HB4688 - 84 - LRB103 36580 HLH 66689 b
3040	3040	1 ethanol blends is imposed at the rate of 1.25%, then the tax
3041	3041	2 imposed by this Act applies to 100% of the selling price of
3042	3042	3 mid-range ethanol blends transferred as an incident to the
3043	3043	4 sale of service during that time.
3044	3044	5 With respect to majority blended ethanol fuel, as defined
3045	3045	6 in the Use Tax Act, the tax imposed by this Act does not apply
3046	3046	7 to the selling price of property transferred as an incident to
3047	3047	8 the sale of service on or after July 1, 2003 and on or before
3048	3048	9 December 31, 2028 but applies to 100% of the selling price
3049	3049	10 thereafter.
3050	3050	11 With respect to biodiesel blends, as defined in the Use
3051	3051	12 Tax Act, with no less than 1% and no more than 10% biodiesel,
3052	3052	13 the tax imposed by this Act applies to (i) 80% of the selling
3053	3053	14 price of property transferred as an incident to the sale of
3054	3054	15 service on or after July 1, 2003 and on or before December 31,
3055	3055	16 2018 and (ii) 100% of the proceeds of the selling price after
3056	3056	17 December 31, 2018 and before January 1, 2024. On and after
3057	3057	18 January 1, 2024 and on or before December 31, 2030, the
3058	3058	19 taxation of biodiesel, renewable diesel, and biodiesel blends
3059	3059	20 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
3060	3060	21 at any time, however, the tax under this Act on sales of
3061	3061	22 biodiesel blends, as defined in the Use Tax Act, with no less
3062	3062	23 than 1% and no more than 10% biodiesel is imposed at the rate
3063	3063	24 of 1.25%, then the tax imposed by this Act applies to 100% of
3064	3064	25 the proceeds of sales of biodiesel blends with no less than 1%
3065	3065	26 and no more than 10% biodiesel made during that time.
3066	3066
3067	3067
3068	3068
3069	3069
3070	3070
3071	3071	HB4688 - 84 - LRB103 36580 HLH 66689 b
3072	3072
3073	3073
3074	3074	HB4688- 85 -LRB103 36580 HLH 66689 b HB4688 - 85 - LRB103 36580 HLH 66689 b
3075	3075	HB4688 - 85 - LRB103 36580 HLH 66689 b
3076	3076	1 With respect to biodiesel, as defined in the Use Tax Act,
3077	3077	2 and biodiesel blends, as defined in the Use Tax Act, with more
3078	3078	3 than 10% but no more than 99% biodiesel material, the tax
3079	3079	4 imposed by this Act does not apply to the proceeds of the
3080	3080	5 selling price of property transferred as an incident to the
3081	3081	6 sale of service on or after July 1, 2003 and on or before
3082	3082	7 December 31, 2023. On and after January 1, 2024 and on or
3083	3083	8 before December 31, 2030, the taxation of biodiesel, renewable
3084	3084	9 diesel, and biodiesel blends shall be as provided in Section
3085	3085	10 3-5.1 of the Use Tax Act.
3086	3086	11 At the election of any registered serviceman made for each
3087	3087	12 fiscal year, sales of service in which the aggregate annual
3088	3088	13 cost price of tangible personal property transferred as an
3089	3089	14 incident to the sales of service is less than 35%, or 75% in
3090	3090	15 the case of servicemen transferring prescription drugs or
3091	3091	16 servicemen engaged in graphic arts production, of the
3092	3092	17 aggregate annual total gross receipts from all sales of
3093	3093	18 service, the tax imposed by this Act shall be based on the
3094	3094	19 serviceman's cost price of the tangible personal property
3095	3095	20 transferred incident to the sale of those services.
3096	3096	21 Until July 1, 2022 and from beginning again on July 1, 2023
3097	3097	22 through June 30, 2024, the tax shall be imposed at the rate of
3098	3098	23 1% on food prepared for immediate consumption and transferred
3099	3099	24 incident to a sale of service subject to this Act or the
3100	3100	25 Service Use Tax Act by an entity licensed under the Hospital
3101	3101	26 Licensing Act, the Nursing Home Care Act, the Assisted Living
3102	3102
3103	3103
3104	3104
3105	3105
3106	3106
3107	3107	HB4688 - 85 - LRB103 36580 HLH 66689 b
3108	3108
3109	3109
3110	3110	HB4688- 86 -LRB103 36580 HLH 66689 b HB4688 - 86 - LRB103 36580 HLH 66689 b
3111	3111	HB4688 - 86 - LRB103 36580 HLH 66689 b
3112	3112	1 and Shared Housing Act, the ID/DD Community Care Act, the
3113	3113	2 MC/DD Act, the Specialized Mental Health Rehabilitation Act of
3114	3114	3 2013, or the Child Care Act of 1969, or an entity that holds a
3115	3115	4 permit issued pursuant to the Life Care Facilities Act. Until
3116	3116	5 July 1, 2022 and from beginning again on July 1, 2023 through
3117	3117	6 June 30, 2024, the tax shall also be imposed at the rate of 1%
3118	3118	7 on food for human consumption that is to be consumed off the
3119	3119	8 premises where it is sold (other than alcoholic beverages,
3120	3120	9 food consisting of or infused with adult use cannabis, soft
3121	3121	10 drinks, and food that has been prepared for immediate
3122	3122	11 consumption and is not otherwise included in this paragraph).
3123	3123	12 From Beginning on July 1, 2022 through June 30, 2023, and
3124	3124	13 on and after July 1, 2024, and until July 1, 2023, the tax
3125	3125	14 shall be imposed at the rate of 0% on food prepared for
3126	3126	15 immediate consumption and transferred incident to a sale of
3127	3127	16 service subject to this Act or the Service Use Tax Act by an
3128	3128	17 entity licensed under the Hospital Licensing Act, the Nursing
3129	3129	18 Home Care Act, the Assisted Living and Shared Housing Act, the
3130	3130	19 ID/DD Community Care Act, the MC/DD Act, the Specialized
3131	3131	20 Mental Health Rehabilitation Act of 2013, or the Child Care
3132	3132	21 Act of 1969, or an entity that holds a permit issued pursuant
3133	3133	22 to the Life Care Facilities Act is exempt from the tax imposed
3134	3134	23 by this Act. From Beginning July 1, 2022 through June 30, 2023,
3135	3135	24 and on and after July 1, 2024, and until July 1, 2023, the tax
3136	3136	25 shall also be imposed at the rate of 0% on food for human
3137	3137	26 consumption that is to be consumed off the premises where it is
3138	3138
3139	3139
3140	3140
3141	3141
3142	3142
3143	3143	HB4688 - 86 - LRB103 36580 HLH 66689 b
3144	3144
3145	3145
3146	3146	HB4688- 87 -LRB103 36580 HLH 66689 b HB4688 - 87 - LRB103 36580 HLH 66689 b
3147	3147	HB4688 - 87 - LRB103 36580 HLH 66689 b
3148	3148	1 sold (other than alcoholic beverages, food consisting of or
3149	3149	2 infused with adult use cannabis, soft drinks, and food that
3150	3150	3 has been prepared for immediate consumption and is not
3151	3151	4 otherwise included in this paragraph) is exempt from the tax
3152	3152	5 imposed by this Act.
3153	3153	6 The tax shall also be imposed at the rate of 1% on
3154	3154	7 prescription and nonprescription medicines, drugs, medical
3155	3155	8 appliances, products classified as Class III medical devices
3156	3156	9 by the United States Food and Drug Administration that are
3157	3157	10 used for cancer treatment pursuant to a prescription, as well
3158	3158	11 as any accessories and components related to those devices,
3159	3159	12 modifications to a motor vehicle for the purpose of rendering
3160	3160	13 it usable by a person with a disability, and insulin, blood
3161	3161	14 sugar testing materials, syringes, and needles used by human
3162	3162	15 diabetics. For the purposes of this Section, until September
3163	3163	16 1, 2009: the term "soft drinks" means any complete, finished,
3164	3164	17 ready-to-use, non-alcoholic drink, whether carbonated or not,
3165	3165	18 including, but not limited to, soda water, cola, fruit juice,
3166	3166	19 vegetable juice, carbonated water, and all other preparations
3167	3167	20 commonly known as soft drinks of whatever kind or description
3168	3168	21 that are contained in any closed or sealed can, carton, or
3169	3169	22 container, regardless of size; but "soft drinks" does not
3170	3170	23 include coffee, tea, non-carbonated water, infant formula,
3171	3171	24 milk or milk products as defined in the Grade A Pasteurized
3172	3172	25 Milk and Milk Products Act, or drinks containing 50% or more
3173	3173	26 natural fruit or vegetable juice.
3174	3174
3175	3175
3176	3176
3177	3177
3178	3178
3179	3179	HB4688 - 87 - LRB103 36580 HLH 66689 b
3180	3180
3181	3181
3182	3182	HB4688- 88 -LRB103 36580 HLH 66689 b HB4688 - 88 - LRB103 36580 HLH 66689 b
3183	3183	HB4688 - 88 - LRB103 36580 HLH 66689 b
3184	3184	1 Notwithstanding any other provisions of this Act,
3185	3185	2 beginning September 1, 2009, "soft drinks" means non-alcoholic
3186	3186	3 beverages that contain natural or artificial sweeteners. "Soft
3187	3187	4 drinks" does not include beverages that contain milk or milk
3188	3188	5 products, soy, rice or similar milk substitutes, or greater
3189	3189	6 than 50% of vegetable or fruit juice by volume.
3190	3190	7 Until August 1, 2009, and notwithstanding any other
3191	3191	8 provisions of this Act, "food for human consumption that is to
3192	3192	9 be consumed off the premises where it is sold" includes all
3193	3193	10 food sold through a vending machine, except soft drinks and
3194	3194	11 food products that are dispensed hot from a vending machine,
3195	3195	12 regardless of the location of the vending machine. Beginning
3196	3196	13 August 1, 2009, and notwithstanding any other provisions of
3197	3197	14 this Act, "food for human consumption that is to be consumed
3198	3198	15 off the premises where it is sold" includes all food sold
3199	3199	16 through a vending machine, except soft drinks, candy, and food
3200	3200	17 products that are dispensed hot from a vending machine,
3201	3201	18 regardless of the location of the vending machine.
3202	3202	19 Notwithstanding any other provisions of this Act,
3203	3203	20 beginning September 1, 2009, "food for human consumption that
3204	3204	21 is to be consumed off the premises where it is sold" does not
3205	3205	22 include candy. For purposes of this Section, "candy" means a
3206	3206	23 preparation of sugar, honey, or other natural or artificial
3207	3207	24 sweeteners in combination with chocolate, fruits, nuts or
3208	3208	25 other ingredients or flavorings in the form of bars, drops, or
3209	3209	26 pieces. "Candy" does not include any preparation that contains
3210	3210
3211	3211
3212	3212
3213	3213
3214	3214
3215	3215	HB4688 - 88 - LRB103 36580 HLH 66689 b
3216	3216
3217	3217
3218	3218	HB4688- 89 -LRB103 36580 HLH 66689 b HB4688 - 89 - LRB103 36580 HLH 66689 b
3219	3219	HB4688 - 89 - LRB103 36580 HLH 66689 b
3220	3220	1 flour or requires refrigeration.
3221	3221	2 Notwithstanding any other provisions of this Act,
3222	3222	3 beginning September 1, 2009, "nonprescription medicines and
3223	3223	4 drugs" does not include grooming and hygiene products. For
3224	3224	5 purposes of this Section, "grooming and hygiene products"
3225	3225	6 includes, but is not limited to, soaps and cleaning solutions,
3226	3226	7 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3227	3227	8 lotions and screens, unless those products are available by
3228	3228	9 prescription only, regardless of whether the products meet the
3229	3229	10 definition of "over-the-counter-drugs". For the purposes of
3230	3230	11 this paragraph, "over-the-counter-drug" means a drug for human
3231	3231	12 use that contains a label that identifies the product as a drug
3232	3232	13 as required by 21 CFR 201.66. The "over-the-counter-drug"
3233	3233	14 label includes:
3234	3234	15 (A) a "Drug Facts" panel; or
3235	3235	16 (B) a statement of the "active ingredient(s)" with a
3236	3236	17 list of those ingredients contained in the compound,
3237	3237	18 substance or preparation.
3238	3238	19 Beginning on January 1, 2014 (the effective date of Public
3239	3239	20 Act 98-122), "prescription and nonprescription medicines and
3240	3240	21 drugs" includes medical cannabis purchased from a registered
3241	3241	22 dispensing organization under the Compassionate Use of Medical
3242	3242	23 Cannabis Program Act.
3243	3243	24 As used in this Section, "adult use cannabis" means
3244	3244	25 cannabis subject to tax under the Cannabis Cultivation
3245	3245	26 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3246	3246
3247	3247
3248	3248
3249	3249
3250	3250
3251	3251	HB4688 - 89 - LRB103 36580 HLH 66689 b
3252	3252
3253	3253
3254	3254	HB4688- 90 -LRB103 36580 HLH 66689 b HB4688 - 90 - LRB103 36580 HLH 66689 b
3255	3255	HB4688 - 90 - LRB103 36580 HLH 66689 b
3256	3256	1 and does not include cannabis subject to tax under the
3257	3257	2 Compassionate Use of Medical Cannabis Program Act.
3258	3258	3 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
3259	3259	4 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
3260	3260	5 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
3261	3261	6 103-154, eff. 6-30-23.)
3262	3262	7 Section 25.
3263	3263	The Retailers' Occupation Tax Act is amended
3264	3264	8 by changing Sections 2-5 and 2-10 as follows:
3265	3265	9 (35 ILCS 120/2-5)
3266	3266	10 Sec. 2-5. Exemptions. Gross receipts from proceeds from
3267	3267	11 the sale of the following tangible personal property are
3268	3268	12 exempt from the tax imposed by this Act:
3269	3269	13 (1) Farm chemicals.
3270	3270	14 (2) Farm machinery and equipment, both new and used,
3271	3271	15 including that manufactured on special order, certified by
3272	3272	16 the purchaser to be used primarily for production
3273	3273	17 agriculture or State or federal agricultural programs,
3274	3274	18 including individual replacement parts for the machinery
3275	3275	19 and equipment, including machinery and equipment purchased
3276	3276	20 for lease, and including implements of husbandry defined
3277	3277	21 in Section 1-130 of the Illinois Vehicle Code, farm
3278	3278	22 machinery and agricultural chemical and fertilizer
3279	3279	23 spreaders, and nurse wagons required to be registered
3280	3280	24 under Section 3-809 of the Illinois Vehicle Code, but
3281	3281
3282	3282
3283	3283
3284	3284
3285	3285
3286	3286	HB4688 - 90 - LRB103 36580 HLH 66689 b
3287	3287
3288	3288
3289	3289	HB4688- 91 -LRB103 36580 HLH 66689 b HB4688 - 91 - LRB103 36580 HLH 66689 b
3290	3290	HB4688 - 91 - LRB103 36580 HLH 66689 b
3291	3291	1 excluding other motor vehicles required to be registered
3292	3292	2 under the Illinois Vehicle Code. Horticultural polyhouses
3293	3293	3 or hoop houses used for propagating, growing, or
3294	3294	4 overwintering plants shall be considered farm machinery
3295	3295	5 and equipment under this item (2). Agricultural chemical
3296	3296	6 tender tanks and dry boxes shall include units sold
3297	3297	7 separately from a motor vehicle required to be licensed
3298	3298	8 and units sold mounted on a motor vehicle required to be
3299	3299	9 licensed, if the selling price of the tender is separately
3300	3300	10 stated.
3301	3301	11 Farm machinery and equipment shall include precision
3302	3302	12 farming equipment that is installed or purchased to be
3303	3303	13 installed on farm machinery and equipment including, but
3304	3304	14 not limited to, tractors, harvesters, sprayers, planters,
3305	3305	15 seeders, or spreaders. Precision farming equipment
3306	3306	16 includes, but is not limited to, soil testing sensors,
3307	3307	17 computers, monitors, software, global positioning and
3308	3308	18 mapping systems, and other such equipment.
3309	3309	19 Farm machinery and equipment also includes computers,
3310	3310	20 sensors, software, and related equipment used primarily in
3311	3311	21 the computer-assisted operation of production agriculture
3312	3312	22 facilities, equipment, and activities such as, but not
3313	3313	23 limited to, the collection, monitoring, and correlation of
3314	3314	24 animal and crop data for the purpose of formulating animal
3315	3315	25 diets and agricultural chemicals.
3316	3316	26 Beginning on January 1, 2024, farm machinery and
3317	3317
3318	3318
3319	3319
3320	3320
3321	3321
3322	3322	HB4688 - 91 - LRB103 36580 HLH 66689 b
3323	3323
3324	3324
3325	3325	HB4688- 92 -LRB103 36580 HLH 66689 b HB4688 - 92 - LRB103 36580 HLH 66689 b
3326	3326	HB4688 - 92 - LRB103 36580 HLH 66689 b
3327	3327	1 equipment also includes electrical power generation
3328	3328	2 equipment used primarily for production agriculture.
3329	3329	3 This item (2) is exempt from the provisions of Section
3330	3330	4 2-70.
3331	3331	5 (3) Until July 1, 2003, distillation machinery and
3332	3332	6 equipment, sold as a unit or kit, assembled or installed
3333	3333	7 by the retailer, certified by the user to be used only for
3334	3334	8 the production of ethyl alcohol that will be used for
3335	3335	9 consumption as motor fuel or as a component of motor fuel
3336	3336	10 for the personal use of the user, and not subject to sale
3337	3337	11 or resale.
3338	3338	12 (4) Until July 1, 2003 and beginning again September
3339	3339	13 1, 2004 through August 30, 2014, graphic arts machinery
3340	3340	14 and equipment, including repair and replacement parts,
3341	3341	15 both new and used, and including that manufactured on
3342	3342	16 special order or purchased for lease, certified by the
3343	3343	17 purchaser to be used primarily for graphic arts
3344	3344	18 production. Equipment includes chemicals or chemicals
3345	3345	19 acting as catalysts but only if the chemicals or chemicals
3346	3346	20 acting as catalysts effect a direct and immediate change
3347	3347	21 upon a graphic arts product. Beginning on July 1, 2017,
3348	3348	22 graphic arts machinery and equipment is included in the
3349	3349	23 manufacturing and assembling machinery and equipment
3350	3350	24 exemption under paragraph (14).
3351	3351	25 (5) A motor vehicle that is used for automobile
3352	3352	26 renting, as defined in the Automobile Renting Occupation
3353	3353
3354	3354
3355	3355
3356	3356
3357	3357
3358	3358	HB4688 - 92 - LRB103 36580 HLH 66689 b
3359	3359
3360	3360
3361	3361	HB4688- 93 -LRB103 36580 HLH 66689 b HB4688 - 93 - LRB103 36580 HLH 66689 b
3362	3362	HB4688 - 93 - LRB103 36580 HLH 66689 b
3363	3363	1 and Use Tax Act. This paragraph is exempt from the
3364	3364	2 provisions of Section 2-70.
3365	3365	3 (6) Personal property sold by a teacher-sponsored
3366	3366	4 student organization affiliated with an elementary or
3367	3367	5 secondary school located in Illinois.
3368	3368	6 (7) Until July 1, 2003, proceeds of that portion of
3369	3369	7 the selling price of a passenger car the sale of which is
3370	3370	8 subject to the Replacement Vehicle Tax.
3371	3371	9 (8) Personal property sold to an Illinois county fair
3372	3372	10 association for use in conducting, operating, or promoting
3373	3373	11 the county fair.
3374	3374	12 (9) Personal property sold to a not-for-profit arts or
3375	3375	13 cultural organization that establishes, by proof required
3376	3376	14 by the Department by rule, that it has received an
3377	3377	15 exemption under Section 501(c)(3) of the Internal Revenue
3378	3378	16 Code and that is organized and operated primarily for the
3379	3379	17 presentation or support of arts or cultural programming,
3380	3380	18 activities, or services. These organizations include, but
3381	3381	19 are not limited to, music and dramatic arts organizations
3382	3382	20 such as symphony orchestras and theatrical groups, arts
3383	3383	21 and cultural service organizations, local arts councils,
3384	3384	22 visual arts organizations, and media arts organizations.
3385	3385	23 On and after July 1, 2001 (the effective date of Public Act
3386	3386	24 92-35), however, an entity otherwise eligible for this
3387	3387	25 exemption shall not make tax-free purchases unless it has
3388	3388	26 an active identification number issued by the Department.
3389	3389
3390	3390
3391	3391
3392	3392
3393	3393
3394	3394	HB4688 - 93 - LRB103 36580 HLH 66689 b
3395	3395
3396	3396
3397	3397	HB4688- 94 -LRB103 36580 HLH 66689 b HB4688 - 94 - LRB103 36580 HLH 66689 b
3398	3398	HB4688 - 94 - LRB103 36580 HLH 66689 b
3399	3399	1 (10) Personal property sold by a corporation, society,
3400	3400	2 association, foundation, institution, or organization,
3401	3401	3 other than a limited liability company, that is organized
3402	3402	4 and operated as a not-for-profit service enterprise for
3403	3403	5 the benefit of persons 65 years of age or older if the
3404	3404	6 personal property was not purchased by the enterprise for
3405	3405	7 the purpose of resale by the enterprise.
3406	3406	8 (11) Except as otherwise provided in this Section,
3407	3407	9 personal property sold to a governmental body, to a
3408	3408	10 corporation, society, association, foundation, or
3409	3409	11 institution organized and operated exclusively for
3410	3410	12 charitable, religious, or educational purposes, or to a
3411	3411	13 not-for-profit corporation, society, association,
3412	3412	14 foundation, institution, or organization that has no
3413	3413	15 compensated officers or employees and that is organized
3414	3414	16 and operated primarily for the recreation of persons 55
3415	3415	17 years of age or older. A limited liability company may
3416	3416	18 qualify for the exemption under this paragraph only if the
3417	3417	19 limited liability company is organized and operated
3418	3418	20 exclusively for educational purposes. On and after July 1,
3419	3419	21 1987, however, no entity otherwise eligible for this
3420	3420	22 exemption shall make tax-free purchases unless it has an
3421	3421	23 active identification number issued by the Department.
3422	3422	24 (12) (Blank).
3423	3423	25 (12-5) On and after July 1, 2003 and through June 30,
3424	3424	26 2004, motor vehicles of the second division with a gross
3425	3425
3426	3426
3427	3427
3428	3428
3429	3429
3430	3430	HB4688 - 94 - LRB103 36580 HLH 66689 b
3431	3431
3432	3432
3433	3433	HB4688- 95 -LRB103 36580 HLH 66689 b HB4688 - 95 - LRB103 36580 HLH 66689 b
3434	3434	HB4688 - 95 - LRB103 36580 HLH 66689 b
3435	3435	1 vehicle weight in excess of 8,000 pounds that are subject
3436	3436	2 to the commercial distribution fee imposed under Section
3437	3437	3 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3438	3438	4 2004 and through June 30, 2005, the use in this State of
3439	3439	5 motor vehicles of the second division: (i) with a gross
3440	3440	6 vehicle weight rating in excess of 8,000 pounds; (ii) that
3441	3441	7 are subject to the commercial distribution fee imposed
3442	3442	8 under Section 3-815.1 of the Illinois Vehicle Code; and
3443	3443	9 (iii) that are primarily used for commercial purposes.
3444	3444	10 Through June 30, 2005, this exemption applies to repair
3445	3445	11 and replacement parts added after the initial purchase of
3446	3446	12 such a motor vehicle if that motor vehicle is used in a
3447	3447	13 manner that would qualify for the rolling stock exemption
3448	3448	14 otherwise provided for in this Act. For purposes of this
3449	3449	15 paragraph, "used for commercial purposes" means the
3450	3450	16 transportation of persons or property in furtherance of
3451	3451	17 any commercial or industrial enterprise whether for-hire
3452	3452	18 or not.
3453	3453	19 (13) Proceeds from sales to owners, lessors, or
3454	3454	20 shippers of tangible personal property that is utilized by
3455	3455	21 interstate carriers for hire for use as rolling stock
3456	3456	22 moving in interstate commerce and equipment operated by a
3457	3457	23 telecommunications provider, licensed as a common carrier
3458	3458	24 by the Federal Communications Commission, which is
3459	3459	25 permanently installed in or affixed to aircraft moving in
3460	3460	26 interstate commerce.
3461	3461
3462	3462
3463	3463
3464	3464
3465	3465
3466	3466	HB4688 - 95 - LRB103 36580 HLH 66689 b
3467	3467
3468	3468
3469	3469	HB4688- 96 -LRB103 36580 HLH 66689 b HB4688 - 96 - LRB103 36580 HLH 66689 b
3470	3470	HB4688 - 96 - LRB103 36580 HLH 66689 b
3471	3471	1 (14) Machinery and equipment that will be used by the
3472	3472	2 purchaser, or a lessee of the purchaser, primarily in the
3473	3473	3 process of manufacturing or assembling tangible personal
3474	3474	4 property for wholesale or retail sale or lease, whether
3475	3475	5 the sale or lease is made directly by the manufacturer or
3476	3476	6 by some other person, whether the materials used in the
3477	3477	7 process are owned by the manufacturer or some other
3478	3478	8 person, or whether the sale or lease is made apart from or
3479	3479	9 as an incident to the seller's engaging in the service
3480	3480	10 occupation of producing machines, tools, dies, jigs,
3481	3481	11 patterns, gauges, or other similar items of no commercial
3482	3482	12 value on special order for a particular purchaser. The
3483	3483	13 exemption provided by this paragraph (14) does not include
3484	3484	14 machinery and equipment used in (i) the generation of
3485	3485	15 electricity for wholesale or retail sale; (ii) the
3486	3486	16 generation or treatment of natural or artificial gas for
3487	3487	17 wholesale or retail sale that is delivered to customers
3488	3488	18 through pipes, pipelines, or mains; or (iii) the treatment
3489	3489	19 of water for wholesale or retail sale that is delivered to
3490	3490	20 customers through pipes, pipelines, or mains. The
3491	3491	21 provisions of Public Act 98-583 are declaratory of
3492	3492	22 existing law as to the meaning and scope of this
3493	3493	23 exemption. Beginning on July 1, 2017, the exemption
3494	3494	24 provided by this paragraph (14) includes, but is not
3495	3495	25 limited to, graphic arts machinery and equipment, as
3496	3496	26 defined in paragraph (4) of this Section.
3497	3497
3498	3498
3499	3499
3500	3500
3501	3501
3502	3502	HB4688 - 96 - LRB103 36580 HLH 66689 b
3503	3503
3504	3504
3505	3505	HB4688- 97 -LRB103 36580 HLH 66689 b HB4688 - 97 - LRB103 36580 HLH 66689 b
3506	3506	HB4688 - 97 - LRB103 36580 HLH 66689 b
3507	3507	1 (15) Proceeds of mandatory service charges separately
3508	3508	2 stated on customers' bills for purchase and consumption of
3509	3509	3 food and beverages, to the extent that the proceeds of the
3510	3510	4 service charge are in fact turned over as tips or as a
3511	3511	5 substitute for tips to the employees who participate
3512	3512	6 directly in preparing, serving, hosting or cleaning up the
3513	3513	7 food or beverage function with respect to which the
3514	3514	8 service charge is imposed.
3515	3515	9 (16) Tangible personal property sold to a purchaser if
3516	3516	10 the purchaser is exempt from use tax by operation of
3517	3517	11 federal law. This paragraph is exempt from the provisions
3518	3518	12 of Section 2-70.
3519	3519	13 (17) Tangible personal property sold to a common
3520	3520	14 carrier by rail or motor that receives the physical
3521	3521	15 possession of the property in Illinois and that transports
3522	3522	16 the property, or shares with another common carrier in the
3523	3523	17 transportation of the property, out of Illinois on a
3524	3524	18 standard uniform bill of lading showing the seller of the
3525	3525	19 property as the shipper or consignor of the property to a
3526	3526	20 destination outside Illinois, for use outside Illinois.
3527	3527	21 (18) Legal tender, currency, medallions, or gold or
3528	3528	22 silver coinage issued by the State of Illinois, the
3529	3529	23 government of the United States of America, or the
3530	3530	24 government of any foreign country, and bullion.
3531	3531	25 (19) Until July 1, 2003, oil field exploration,
3532	3532	26 drilling, and production equipment, including (i) rigs and
3533	3533
3534	3534
3535	3535
3536	3536
3537	3537
3538	3538	HB4688 - 97 - LRB103 36580 HLH 66689 b
3539	3539
3540	3540
3541	3541	HB4688- 98 -LRB103 36580 HLH 66689 b HB4688 - 98 - LRB103 36580 HLH 66689 b
3542	3542	HB4688 - 98 - LRB103 36580 HLH 66689 b
3543	3543	1 parts of rigs, rotary rigs, cable tool rigs, and workover
3544	3544	2 rigs, (ii) pipe and tubular goods, including casing and
3545	3545	3 drill strings, (iii) pumps and pump-jack units, (iv)
3546	3546	4 storage tanks and flow lines, (v) any individual
3547	3547	5 replacement part for oil field exploration, drilling, and
3548	3548	6 production equipment, and (vi) machinery and equipment
3549	3549	7 purchased for lease; but excluding motor vehicles required
3550	3550	8 to be registered under the Illinois Vehicle Code.
3551	3551	9 (20) Photoprocessing machinery and equipment,
3552	3552	10 including repair and replacement parts, both new and used,
3553	3553	11 including that manufactured on special order, certified by
3554	3554	12 the purchaser to be used primarily for photoprocessing,
3555	3555	13 and including photoprocessing machinery and equipment
3556	3556	14 purchased for lease.
3557	3557	15 (21) Until July 1, 2028, coal and aggregate
3558	3558	16 exploration, mining, off-highway hauling, processing,
3559	3559	17 maintenance, and reclamation equipment, including
3560	3560	18 replacement parts and equipment, and including equipment
3561	3561	19 purchased for lease, but excluding motor vehicles required
3562	3562	20 to be registered under the Illinois Vehicle Code. The
3563	3563	21 changes made to this Section by Public Act 97-767 apply on
3564	3564	22 and after July 1, 2003, but no claim for credit or refund
3565	3565	23 is allowed on or after August 16, 2013 (the effective date
3566	3566	24 of Public Act 98-456) for such taxes paid during the
3567	3567	25 period beginning July 1, 2003 and ending on August 16,
3568	3568	26 2013 (the effective date of Public Act 98-456).
3569	3569
3570	3570
3571	3571
3572	3572
3573	3573
3574	3574	HB4688 - 98 - LRB103 36580 HLH 66689 b
3575	3575
3576	3576
3577	3577	HB4688- 99 -LRB103 36580 HLH 66689 b HB4688 - 99 - LRB103 36580 HLH 66689 b
3578	3578	HB4688 - 99 - LRB103 36580 HLH 66689 b
3579	3579	1 (22) Until June 30, 2013, fuel and petroleum products
3580	3580	2 sold to or used by an air carrier, certified by the carrier
3581	3581	3 to be used for consumption, shipment, or storage in the
3582	3582	4 conduct of its business as an air common carrier, for a
3583	3583	5 flight destined for or returning from a location or
3584	3584	6 locations outside the United States without regard to
3585	3585	7 previous or subsequent domestic stopovers.
3586	3586	8 Beginning July 1, 2013, fuel and petroleum products
3587	3587	9 sold to or used by an air carrier, certified by the carrier
3588	3588	10 to be used for consumption, shipment, or storage in the
3589	3589	11 conduct of its business as an air common carrier, for a
3590	3590	12 flight that (i) is engaged in foreign trade or is engaged
3591	3591	13 in trade between the United States and any of its
3592	3592	14 possessions and (ii) transports at least one individual or
3593	3593	15 package for hire from the city of origination to the city
3594	3594	16 of final destination on the same aircraft, without regard
3595	3595	17 to a change in the flight number of that aircraft.
3596	3596	18 (23) A transaction in which the purchase order is
3597	3597	19 received by a florist who is located outside Illinois, but
3598	3598	20 who has a florist located in Illinois deliver the property
3599	3599	21 to the purchaser or the purchaser's donee in Illinois.
3600	3600	22 (24) Fuel consumed or used in the operation of ships,
3601	3601	23 barges, or vessels that are used primarily in or for the
3602	3602	24 transportation of property or the conveyance of persons
3603	3603	25 for hire on rivers bordering on this State if the fuel is
3604	3604	26 delivered by the seller to the purchaser's barge, ship, or
3605	3605
3606	3606
3607	3607
3608	3608
3609	3609
3610	3610	HB4688 - 99 - LRB103 36580 HLH 66689 b
3611	3611
3612	3612
3613	3613	HB4688- 100 -LRB103 36580 HLH 66689 b HB4688 - 100 - LRB103 36580 HLH 66689 b
3614	3614	HB4688 - 100 - LRB103 36580 HLH 66689 b
3615	3615	1 vessel while it is afloat upon that bordering river.
3616	3616	2 (25) Except as provided in item (25-5) of this
3617	3617	3 Section, a motor vehicle sold in this State to a
3618	3618	4 nonresident even though the motor vehicle is delivered to
3619	3619	5 the nonresident in this State, if the motor vehicle is not
3620	3620	6 to be titled in this State, and if a drive-away permit is
3621	3621	7 issued to the motor vehicle as provided in Section 3-603
3622	3622	8 of the Illinois Vehicle Code or if the nonresident
3623	3623	9 purchaser has vehicle registration plates to transfer to
3624	3624	10 the motor vehicle upon returning to his or her home state.
3625	3625	11 The issuance of the drive-away permit or having the
3626	3626	12 out-of-state registration plates to be transferred is
3627	3627	13 prima facie evidence that the motor vehicle will not be
3628	3628	14 titled in this State.
3629	3629	15 (25-5) The exemption under item (25) does not apply if
3630	3630	16 the state in which the motor vehicle will be titled does
3631	3631	17 not allow a reciprocal exemption for a motor vehicle sold
3632	3632	18 and delivered in that state to an Illinois resident but
3633	3633	19 titled in Illinois. The tax collected under this Act on
3634	3634	20 the sale of a motor vehicle in this State to a resident of
3635	3635	21 another state that does not allow a reciprocal exemption
3636	3636	22 shall be imposed at a rate equal to the state's rate of tax
3637	3637	23 on taxable property in the state in which the purchaser is
3638	3638	24 a resident, except that the tax shall not exceed the tax
3639	3639	25 that would otherwise be imposed under this Act. At the
3640	3640	26 time of the sale, the purchaser shall execute a statement,
3641	3641
3642	3642
3643	3643
3644	3644
3645	3645
3646	3646	HB4688 - 100 - LRB103 36580 HLH 66689 b
3647	3647
3648	3648
3649	3649	HB4688- 101 -LRB103 36580 HLH 66689 b HB4688 - 101 - LRB103 36580 HLH 66689 b
3650	3650	HB4688 - 101 - LRB103 36580 HLH 66689 b
3651	3651	1 signed under penalty of perjury, of his or her intent to
3652	3652	2 title the vehicle in the state in which the purchaser is a
3653	3653	3 resident within 30 days after the sale and of the fact of
3654	3654	4 the payment to the State of Illinois of tax in an amount
3655	3655	5 equivalent to the state's rate of tax on taxable property
3656	3656	6 in his or her state of residence and shall submit the
3657	3657	7 statement to the appropriate tax collection agency in his
3658	3658	8 or her state of residence. In addition, the retailer must
3659	3659	9 retain a signed copy of the statement in his or her
3660	3660	10 records. Nothing in this item shall be construed to
3661	3661	11 require the removal of the vehicle from this state
3662	3662	12 following the filing of an intent to title the vehicle in
3663	3663	13 the purchaser's state of residence if the purchaser titles
3664	3664	14 the vehicle in his or her state of residence within 30 days
3665	3665	15 after the date of sale. The tax collected under this Act in
3666	3666	16 accordance with this item (25-5) shall be proportionately
3667	3667	17 distributed as if the tax were collected at the 6.25%
3668	3668	18 general rate imposed under this Act.
3669	3669	19 (25-7) Beginning on July 1, 2007, no tax is imposed
3670	3670	20 under this Act on the sale of an aircraft, as defined in
3671	3671	21 Section 3 of the Illinois Aeronautics Act, if all of the
3672	3672	22 following conditions are met:
3673	3673	23 (1) the aircraft leaves this State within 15 days
3674	3674	24 after the later of either the issuance of the final
3675	3675	25 billing for the sale of the aircraft, or the
3676	3676	26 authorized approval for return to service, completion
3677	3677
3678	3678
3679	3679
3680	3680
3681	3681
3682	3682	HB4688 - 101 - LRB103 36580 HLH 66689 b
3683	3683
3684	3684
3685	3685	HB4688- 102 -LRB103 36580 HLH 66689 b HB4688 - 102 - LRB103 36580 HLH 66689 b
3686	3686	HB4688 - 102 - LRB103 36580 HLH 66689 b
3687	3687	1 of the maintenance record entry, and completion of the
3688	3688	2 test flight and ground test for inspection, as
3689	3689	3 required by 14 CFR 91.407;
3690	3690	4 (2) the aircraft is not based or registered in
3691	3691	5 this State after the sale of the aircraft; and
3692	3692	6 (3) the seller retains in his or her books and
3693	3693	7 records and provides to the Department a signed and
3694	3694	8 dated certification from the purchaser, on a form
3695	3695	9 prescribed by the Department, certifying that the
3696	3696	10 requirements of this item (25-7) are met. The
3697	3697	11 certificate must also include the name and address of
3698	3698	12 the purchaser, the address of the location where the
3699	3699	13 aircraft is to be titled or registered, the address of
3700	3700	14 the primary physical location of the aircraft, and
3701	3701	15 other information that the Department may reasonably
3702	3702	16 require.
3703	3703	17 For purposes of this item (25-7):
3704	3704	18 "Based in this State" means hangared, stored, or
3705	3705	19 otherwise used, excluding post-sale customizations as
3706	3706	20 defined in this Section, for 10 or more days in each
3707	3707	21 12-month period immediately following the date of the sale
3708	3708	22 of the aircraft.
3709	3709	23 "Registered in this State" means an aircraft
3710	3710	24 registered with the Department of Transportation,
3711	3711	25 Aeronautics Division, or titled or registered with the
3712	3712	26 Federal Aviation Administration to an address located in
3713	3713
3714	3714
3715	3715
3716	3716
3717	3717
3718	3718	HB4688 - 102 - LRB103 36580 HLH 66689 b
3719	3719
3720	3720
3721	3721	HB4688- 103 -LRB103 36580 HLH 66689 b HB4688 - 103 - LRB103 36580 HLH 66689 b
3722	3722	HB4688 - 103 - LRB103 36580 HLH 66689 b
3723	3723	1 this State.
3724	3724	2 This paragraph (25-7) is exempt from the provisions of
3725	3725	3 Section 2-70.
3726	3726	4 (26) Semen used for artificial insemination of
3727	3727	5 livestock for direct agricultural production.
3728	3728	6 (27) Horses, or interests in horses, registered with
3729	3729	7 and meeting the requirements of any of the Arabian Horse
3730	3730	8 Club Registry of America, Appaloosa Horse Club, American
3731	3731	9 Quarter Horse Association, United States Trotting
3732	3732	10 Association, or Jockey Club, as appropriate, used for
3733	3733	11 purposes of breeding or racing for prizes. This item (27)
3734	3734	12 is exempt from the provisions of Section 2-70, and the
3735	3735	13 exemption provided for under this item (27) applies for
3736	3736	14 all periods beginning May 30, 1995, but no claim for
3737	3737	15 credit or refund is allowed on or after January 1, 2008
3738	3738	16 (the effective date of Public Act 95-88) for such taxes
3739	3739	17 paid during the period beginning May 30, 2000 and ending
3740	3740	18 on January 1, 2008 (the effective date of Public Act
3741	3741	19 95-88).
3742	3742	20 (28) Computers and communications equipment utilized
3743	3743	21 for any hospital purpose and equipment used in the
3744	3744	22 diagnosis, analysis, or treatment of hospital patients
3745	3745	23 sold to a lessor who leases the equipment, under a lease of
3746	3746	24 one year or longer executed or in effect at the time of the
3747	3747	25 purchase, to a hospital that has been issued an active tax
3748	3748	26 exemption identification number by the Department under
3749	3749
3750	3750
3751	3751
3752	3752
3753	3753
3754	3754	HB4688 - 103 - LRB103 36580 HLH 66689 b
3755	3755
3756	3756
3757	3757	HB4688- 104 -LRB103 36580 HLH 66689 b HB4688 - 104 - LRB103 36580 HLH 66689 b
3758	3758	HB4688 - 104 - LRB103 36580 HLH 66689 b
3759	3759	1 Section 1g of this Act.
3760	3760	2 (29) Personal property sold to a lessor who leases the
3761	3761	3 property, under a lease of one year or longer executed or
3762	3762	4 in effect at the time of the purchase, to a governmental
3763	3763	5 body that has been issued an active tax exemption
3764	3764	6 identification number by the Department under Section 1g
3765	3765	7 of this Act.
3766	3766	8 (30) Beginning with taxable years ending on or after
3767	3767	9 December 31, 1995 and ending with taxable years ending on
3768	3768	10 or before December 31, 2004, personal property that is
3769	3769	11 donated for disaster relief to be used in a State or
3770	3770	12 federally declared disaster area in Illinois or bordering
3771	3771	13 Illinois by a manufacturer or retailer that is registered
3772	3772	14 in this State to a corporation, society, association,
3773	3773	15 foundation, or institution that has been issued a sales
3774	3774	16 tax exemption identification number by the Department that
3775	3775	17 assists victims of the disaster who reside within the
3776	3776	18 declared disaster area.
3777	3777	19 (31) Beginning with taxable years ending on or after
3778	3778	20 December 31, 1995 and ending with taxable years ending on
3779	3779	21 or before December 31, 2004, personal property that is
3780	3780	22 used in the performance of infrastructure repairs in this
3781	3781	23 State, including, but not limited to, municipal roads and
3782	3782	24 streets, access roads, bridges, sidewalks, waste disposal
3783	3783	25 systems, water and sewer line extensions, water
3784	3784	26 distribution and purification facilities, storm water
3785	3785
3786	3786
3787	3787
3788	3788
3789	3789
3790	3790	HB4688 - 104 - LRB103 36580 HLH 66689 b
3791	3791
3792	3792
3793	3793	HB4688- 105 -LRB103 36580 HLH 66689 b HB4688 - 105 - LRB103 36580 HLH 66689 b
3794	3794	HB4688 - 105 - LRB103 36580 HLH 66689 b
3795	3795	1 drainage and retention facilities, and sewage treatment
3796	3796	2 facilities, resulting from a State or federally declared
3797	3797	3 disaster in Illinois or bordering Illinois when such
3798	3798	4 repairs are initiated on facilities located in the
3799	3799	5 declared disaster area within 6 months after the disaster.
3800	3800	6 (32) Beginning July 1, 1999, game or game birds sold
3801	3801	7 at a "game breeding and hunting preserve area" as that
3802	3802	8 term is used in the Wildlife Code. This paragraph is
3803	3803	9 exempt from the provisions of Section 2-70.
3804	3804	10 (33) A motor vehicle, as that term is defined in
3805	3805	11 Section 1-146 of the Illinois Vehicle Code, that is
3806	3806	12 donated to a corporation, limited liability company,
3807	3807	13 society, association, foundation, or institution that is
3808	3808	14 determined by the Department to be organized and operated
3809	3809	15 exclusively for educational purposes. For purposes of this
3810	3810	16 exemption, "a corporation, limited liability company,
3811	3811	17 society, association, foundation, or institution organized
3812	3812	18 and operated exclusively for educational purposes" means
3813	3813	19 all tax-supported public schools, private schools that
3814	3814	20 offer systematic instruction in useful branches of
3815	3815	21 learning by methods common to public schools and that
3816	3816	22 compare favorably in their scope and intensity with the
3817	3817	23 course of study presented in tax-supported schools, and
3818	3818	24 vocational or technical schools or institutes organized
3819	3819	25 and operated exclusively to provide a course of study of
3820	3820	26 not less than 6 weeks duration and designed to prepare
3821	3821
3822	3822
3823	3823
3824	3824
3825	3825
3826	3826	HB4688 - 105 - LRB103 36580 HLH 66689 b
3827	3827
3828	3828
3829	3829	HB4688- 106 -LRB103 36580 HLH 66689 b HB4688 - 106 - LRB103 36580 HLH 66689 b
3830	3830	HB4688 - 106 - LRB103 36580 HLH 66689 b
3831	3831	1 individuals to follow a trade or to pursue a manual,
3832	3832	2 technical, mechanical, industrial, business, or commercial
3833	3833	3 occupation.
3834	3834	4 (34) Beginning January 1, 2000, personal property,
3835	3835	5 including food, purchased through fundraising events for
3836	3836	6 the benefit of a public or private elementary or secondary
3837	3837	7 school, a group of those schools, or one or more school
3838	3838	8 districts if the events are sponsored by an entity
3839	3839	9 recognized by the school district that consists primarily
3840	3840	10 of volunteers and includes parents and teachers of the
3841	3841	11 school children. This paragraph does not apply to
3842	3842	12 fundraising events (i) for the benefit of private home
3843	3843	13 instruction or (ii) for which the fundraising entity
3844	3844	14 purchases the personal property sold at the events from
3845	3845	15 another individual or entity that sold the property for
3846	3846	16 the purpose of resale by the fundraising entity and that
3847	3847	17 profits from the sale to the fundraising entity. This
3848	3848	18 paragraph is exempt from the provisions of Section 2-70.
3849	3849	19 (35) Beginning January 1, 2000 and through December
3850	3850	20 31, 2001, new or used automatic vending machines that
3851	3851	21 prepare and serve hot food and beverages, including
3852	3852	22 coffee, soup, and other items, and replacement parts for
3853	3853	23 these machines. Beginning January 1, 2002 and through June
3854	3854	24 30, 2003, machines and parts for machines used in
3855	3855	25 commercial, coin-operated amusement and vending business
3856	3856	26 if a use or occupation tax is paid on the gross receipts
3857	3857
3858	3858
3859	3859
3860	3860
3861	3861
3862	3862	HB4688 - 106 - LRB103 36580 HLH 66689 b
3863	3863
3864	3864
3865	3865	HB4688- 107 -LRB103 36580 HLH 66689 b HB4688 - 107 - LRB103 36580 HLH 66689 b
3866	3866	HB4688 - 107 - LRB103 36580 HLH 66689 b
3867	3867	1 derived from the use of the commercial, coin-operated
3868	3868	2 amusement and vending machines. This paragraph is exempt
3869	3869	3 from the provisions of Section 2-70.
3870	3870	4 (35-5) Beginning August 23, 2001 and through June 30,
3871	3871	5 2016, food for human consumption that is to be consumed
3872	3872	6 off the premises where it is sold (other than alcoholic
3873	3873	7 beverages, soft drinks, and food that has been prepared
3874	3874	8 for immediate consumption) and prescription and
3875	3875	9 nonprescription medicines, drugs, medical appliances, and
3876	3876	10 insulin, urine testing materials, syringes, and needles
3877	3877	11 used by diabetics, for human use, when purchased for use
3878	3878	12 by a person receiving medical assistance under Article V
3879	3879	13 of the Illinois Public Aid Code who resides in a licensed
3880	3880	14 long-term care facility, as defined in the Nursing Home
3881	3881	15 Care Act, or a licensed facility as defined in the ID/DD
3882	3882	16 Community Care Act, the MC/DD Act, or the Specialized
3883	3883	17 Mental Health Rehabilitation Act of 2013.
3884	3884	18 (36) Beginning August 2, 2001, computers and
3885	3885	19 communications equipment utilized for any hospital purpose
3886	3886	20 and equipment used in the diagnosis, analysis, or
3887	3887	21 treatment of hospital patients sold to a lessor who leases
3888	3888	22 the equipment, under a lease of one year or longer
3889	3889	23 executed or in effect at the time of the purchase, to a
3890	3890	24 hospital that has been issued an active tax exemption
3891	3891	25 identification number by the Department under Section 1g
3892	3892	26 of this Act. This paragraph is exempt from the provisions
3893	3893
3894	3894
3895	3895
3896	3896
3897	3897
3898	3898	HB4688 - 107 - LRB103 36580 HLH 66689 b
3899	3899
3900	3900
3901	3901	HB4688- 108 -LRB103 36580 HLH 66689 b HB4688 - 108 - LRB103 36580 HLH 66689 b
3902	3902	HB4688 - 108 - LRB103 36580 HLH 66689 b
3903	3903	1 of Section 2-70.
3904	3904	2 (37) Beginning August 2, 2001, personal property sold
3905	3905	3 to a lessor who leases the property, under a lease of one
3906	3906	4 year or longer executed or in effect at the time of the
3907	3907	5 purchase, to a governmental body that has been issued an
3908	3908	6 active tax exemption identification number by the
3909	3909	7 Department under Section 1g of this Act. This paragraph is
3910	3910	8 exempt from the provisions of Section 2-70.
3911	3911	9 (38) Beginning on January 1, 2002 and through June 30,
3912	3912	10 2016, tangible personal property purchased from an
3913	3913	11 Illinois retailer by a taxpayer engaged in centralized
3914	3914	12 purchasing activities in Illinois who will, upon receipt
3915	3915	13 of the property in Illinois, temporarily store the
3916	3916	14 property in Illinois (i) for the purpose of subsequently
3917	3917	15 transporting it outside this State for use or consumption
3918	3918	16 thereafter solely outside this State or (ii) for the
3919	3919	17 purpose of being processed, fabricated, or manufactured
3920	3920	18 into, attached to, or incorporated into other tangible
3921	3921	19 personal property to be transported outside this State and
3922	3922	20 thereafter used or consumed solely outside this State. The
3923	3923	21 Director of Revenue shall, pursuant to rules adopted in
3924	3924	22 accordance with the Illinois Administrative Procedure Act,
3925	3925	23 issue a permit to any taxpayer in good standing with the
3926	3926	24 Department who is eligible for the exemption under this
3927	3927	25 paragraph (38). The permit issued under this paragraph
3928	3928	26 (38) shall authorize the holder, to the extent and in the
3929	3929
3930	3930
3931	3931
3932	3932
3933	3933
3934	3934	HB4688 - 108 - LRB103 36580 HLH 66689 b
3935	3935
3936	3936
3937	3937	HB4688- 109 -LRB103 36580 HLH 66689 b HB4688 - 109 - LRB103 36580 HLH 66689 b
3938	3938	HB4688 - 109 - LRB103 36580 HLH 66689 b
3939	3939	1 manner specified in the rules adopted under this Act, to
3940	3940	2 purchase tangible personal property from a retailer exempt
3941	3941	3 from the taxes imposed by this Act. Taxpayers shall
3942	3942	4 maintain all necessary books and records to substantiate
3943	3943	5 the use and consumption of all such tangible personal
3944	3944	6 property outside of the State of Illinois.
3945	3945	7 (39) Beginning January 1, 2008, tangible personal
3946	3946	8 property used in the construction or maintenance of a
3947	3947	9 community water supply, as defined under Section 3.145 of
3948	3948	10 the Environmental Protection Act, that is operated by a
3949	3949	11 not-for-profit corporation that holds a valid water supply
3950	3950	12 permit issued under Title IV of the Environmental
3951	3951	13 Protection Act. This paragraph is exempt from the
3952	3952	14 provisions of Section 2-70.
3953	3953	15 (40) Beginning January 1, 2010 and continuing through
3954	3954	16 December 31, 2029, materials, parts, equipment,
3955	3955	17 components, and furnishings incorporated into or upon an
3956	3956	18 aircraft as part of the modification, refurbishment,
3957	3957	19 completion, replacement, repair, or maintenance of the
3958	3958	20 aircraft. This exemption includes consumable supplies used
3959	3959	21 in the modification, refurbishment, completion,
3960	3960	22 replacement, repair, and maintenance of aircraft. However,
3961	3961	23 until January 1, 2024, this exemption excludes any
3962	3962	24 materials, parts, equipment, components, and consumable
3963	3963	25 supplies used in the modification, replacement, repair,
3964	3964	26 and maintenance of aircraft engines or power plants,
3965	3965
3966	3966
3967	3967
3968	3968
3969	3969
3970	3970	HB4688 - 109 - LRB103 36580 HLH 66689 b
3971	3971
3972	3972
3973	3973	HB4688- 110 -LRB103 36580 HLH 66689 b HB4688 - 110 - LRB103 36580 HLH 66689 b
3974	3974	HB4688 - 110 - LRB103 36580 HLH 66689 b
3975	3975	1 whether such engines or power plants are installed or
3976	3976	2 uninstalled upon any such aircraft. "Consumable supplies"
3977	3977	3 include, but are not limited to, adhesive, tape,
3978	3978	4 sandpaper, general purpose lubricants, cleaning solution,
3979	3979	5 latex gloves, and protective films.
3980	3980	6 Beginning January 1, 2010 and continuing through
3981	3981	7 December 31, 2023, this exemption applies only to the sale
3982	3982	8 of qualifying tangible personal property to persons who
3983	3983	9 modify, refurbish, complete, replace, or maintain an
3984	3984	10 aircraft and who (i) hold an Air Agency Certificate and
3985	3985	11 are empowered to operate an approved repair station by the
3986	3986	12 Federal Aviation Administration, (ii) have a Class IV
3987	3987	13 Rating, and (iii) conduct operations in accordance with
3988	3988	14 Part 145 of the Federal Aviation Regulations. The
3989	3989	15 exemption does not include aircraft operated by a
3990	3990	16 commercial air carrier providing scheduled passenger air
3991	3991	17 service pursuant to authority issued under Part 121 or
3992	3992	18 Part 129 of the Federal Aviation Regulations. From January
3993	3993	19 1, 2024 through December 31, 2029, this exemption applies
3994	3994	20 only to the use of qualifying tangible personal property
3995	3995	21 by: (A) persons who modify, refurbish, complete, repair,
3996	3996	22 replace, or maintain aircraft and who (i) hold an Air
3997	3997	23 Agency Certificate and are empowered to operate an
3998	3998	24 approved repair station by the Federal Aviation
3999	3999	25 Administration, (ii) have a Class IV Rating, and (iii)
4000	4000	26 conduct operations in accordance with Part 145 of the
4001	4001
4002	4002
4003	4003
4004	4004
4005	4005
4006	4006	HB4688 - 110 - LRB103 36580 HLH 66689 b
4007	4007
4008	4008
4009	4009	HB4688- 111 -LRB103 36580 HLH 66689 b HB4688 - 111 - LRB103 36580 HLH 66689 b
4010	4010	HB4688 - 111 - LRB103 36580 HLH 66689 b
4011	4011	1 Federal Aviation Regulations; and (B) persons who engage
4012	4012	2 in the modification, replacement, repair, and maintenance
4013	4013	3 of aircraft engines or power plants without regard to
4014	4014	4 whether or not those persons meet the qualifications of
4015	4015	5 item (A).
4016	4016	6 The changes made to this paragraph (40) by Public Act
4017	4017	7 98-534 are declarative of existing law. It is the intent
4018	4018	8 of the General Assembly that the exemption under this
4019	4019	9 paragraph (40) applies continuously from January 1, 2010
4020	4020	10 through December 31, 2024; however, no claim for credit or
4021	4021	11 refund is allowed for taxes paid as a result of the
4022	4022	12 disallowance of this exemption on or after January 1, 2015
4023	4023	13 and prior to February 5, 2020 (the effective date of
4024	4024	14 Public Act 101-629).
4025	4025	15 (41) Tangible personal property sold to a
4026	4026	16 public-facilities corporation, as described in Section
4027	4027	17 11-65-10 of the Illinois Municipal Code, for purposes of
4028	4028	18 constructing or furnishing a municipal convention hall,
4029	4029	19 but only if the legal title to the municipal convention
4030	4030	20 hall is transferred to the municipality without any
4031	4031	21 further consideration by or on behalf of the municipality
4032	4032	22 at the time of the completion of the municipal convention
4033	4033	23 hall or upon the retirement or redemption of any bonds or
4034	4034	24 other debt instruments issued by the public-facilities
4035	4035	25 corporation in connection with the development of the
4036	4036	26 municipal convention hall. This exemption includes
4037	4037
4038	4038
4039	4039
4040	4040
4041	4041
4042	4042	HB4688 - 111 - LRB103 36580 HLH 66689 b
4043	4043
4044	4044
4045	4045	HB4688- 112 -LRB103 36580 HLH 66689 b HB4688 - 112 - LRB103 36580 HLH 66689 b
4046	4046	HB4688 - 112 - LRB103 36580 HLH 66689 b
4047	4047	1 existing public-facilities corporations as provided in
4048	4048	2 Section 11-65-25 of the Illinois Municipal Code. This
4049	4049	3 paragraph is exempt from the provisions of Section 2-70.
4050	4050	4 (42) Beginning January 1, 2017 and through December
4051	4051	5 31, 2026, menstrual pads, tampons, and menstrual cups.
4052	4052	6 (43) Merchandise that is subject to the Rental
4053	4053	7 Purchase Agreement Occupation and Use Tax. The purchaser
4054	4054	8 must certify that the item is purchased to be rented
4055	4055	9 subject to a rental-purchase rental purchase agreement, as
4056	4056	10 defined in the Rental-Purchase Rental Purchase Agreement
4057	4057	11 Act, and provide proof of registration under the Rental
4058	4058	12 Purchase Agreement Occupation and Use Tax Act. This
4059	4059	13 paragraph is exempt from the provisions of Section 2-70.
4060	4060	14 (44) Qualified tangible personal property used in the
4061	4061	15 construction or operation of a data center that has been
4062	4062	16 granted a certificate of exemption by the Department of
4063	4063	17 Commerce and Economic Opportunity, whether that tangible
4064	4064	18 personal property is purchased by the owner, operator, or
4065	4065	19 tenant of the data center or by a contractor or
4066	4066	20 subcontractor of the owner, operator, or tenant. Data
4067	4067	21 centers that would have qualified for a certificate of
4068	4068	22 exemption prior to January 1, 2020 had Public Act 101-31
4069	4069	23 been in effect, may apply for and obtain an exemption for
4070	4070	24 subsequent purchases of computer equipment or enabling
4071	4071	25 software purchased or leased to upgrade, supplement, or
4072	4072	26 replace computer equipment or enabling software purchased
4073	4073
4074	4074
4075	4075
4076	4076
4077	4077
4078	4078	HB4688 - 112 - LRB103 36580 HLH 66689 b
4079	4079
4080	4080
4081	4081	HB4688- 113 -LRB103 36580 HLH 66689 b HB4688 - 113 - LRB103 36580 HLH 66689 b
4082	4082	HB4688 - 113 - LRB103 36580 HLH 66689 b
4083	4083	1 or leased in the original investment that would have
4084	4084	2 qualified.
4085	4085	3 The Department of Commerce and Economic Opportunity
4086	4086	4 shall grant a certificate of exemption under this item
4087	4087	5 (44) to qualified data centers as defined by Section
4088	4088	6 605-1025 of the Department of Commerce and Economic
4089	4089	7 Opportunity Law of the Civil Administrative Code of
4090	4090	8 Illinois.
4091	4091	9 For the purposes of this item (44):
4092	4092	10 "Data center" means a building or a series of
4093	4093	11 buildings rehabilitated or constructed to house
4094	4094	12 working servers in one physical location or multiple
4095	4095	13 sites within the State of Illinois.
4096	4096	14 "Qualified tangible personal property" means:
4097	4097	15 electrical systems and equipment; climate control and
4098	4098	16 chilling equipment and systems; mechanical systems and
4099	4099	17 equipment; monitoring and secure systems; emergency
4100	4100	18 generators; hardware; computers; servers; data storage
4101	4101	19 devices; network connectivity equipment; racks;
4102	4102	20 cabinets; telecommunications cabling infrastructure;
4103	4103	21 raised floor systems; peripheral components or
4104	4104	22 systems; software; mechanical, electrical, or plumbing
4105	4105	23 systems; battery systems; cooling systems and towers;
4106	4106	24 temperature control systems; other cabling; and other
4107	4107	25 data center infrastructure equipment and systems
4108	4108	26 necessary to operate qualified tangible personal
4109	4109
4110	4110
4111	4111
4112	4112
4113	4113
4114	4114	HB4688 - 113 - LRB103 36580 HLH 66689 b
4115	4115
4116	4116
4117	4117	HB4688- 114 -LRB103 36580 HLH 66689 b HB4688 - 114 - LRB103 36580 HLH 66689 b
4118	4118	HB4688 - 114 - LRB103 36580 HLH 66689 b
4119	4119	1 property, including fixtures; and component parts of
4120	4120	2 any of the foregoing, including installation,
4121	4121	3 maintenance, repair, refurbishment, and replacement of
4122	4122	4 qualified tangible personal property to generate,
4123	4123	5 transform, transmit, distribute, or manage electricity
4124	4124	6 necessary to operate qualified tangible personal
4125	4125	7 property; and all other tangible personal property
4126	4126	8 that is essential to the operations of a computer data
4127	4127	9 center. The term "qualified tangible personal
4128	4128	10 property" also includes building materials physically
4129	4129	11 incorporated into the qualifying data center. To
4130	4130	12 document the exemption allowed under this Section, the
4131	4131	13 retailer must obtain from the purchaser a copy of the
4132	4132	14 certificate of eligibility issued by the Department of
4133	4133	15 Commerce and Economic Opportunity.
4134	4134	16 This item (44) is exempt from the provisions of
4135	4135	17 Section 2-70.
4136	4136	18 (45) Beginning January 1, 2020 and through December
4137	4137	19 31, 2020, sales of tangible personal property made by a
4138	4138	20 marketplace seller over a marketplace for which tax is due
4139	4139	21 under this Act but for which use tax has been collected and
4140	4140	22 remitted to the Department by a marketplace facilitator
4141	4141	23 under Section 2d of the Use Tax Act are exempt from tax
4142	4142	24 under this Act. A marketplace seller claiming this
4143	4143	25 exemption shall maintain books and records demonstrating
4144	4144	26 that the use tax on such sales has been collected and
4145	4145
4146	4146
4147	4147
4148	4148
4149	4149
4150	4150	HB4688 - 114 - LRB103 36580 HLH 66689 b
4151	4151
4152	4152
4153	4153	HB4688- 115 -LRB103 36580 HLH 66689 b HB4688 - 115 - LRB103 36580 HLH 66689 b
4154	4154	HB4688 - 115 - LRB103 36580 HLH 66689 b
4155	4155	1 remitted by a marketplace facilitator. Marketplace sellers
4156	4156	2 that have properly remitted tax under this Act on such
4157	4157	3 sales may file a claim for credit as provided in Section 6
4158	4158	4 of this Act. No claim is allowed, however, for such taxes
4159	4159	5 for which a credit or refund has been issued to the
4160	4160	6 marketplace facilitator under the Use Tax Act, or for
4161	4161	7 which the marketplace facilitator has filed a claim for
4162	4162	8 credit or refund under the Use Tax Act.
4163	4163	9 (46) Beginning July 1, 2022, breast pumps, breast pump
4164	4164	10 collection and storage supplies, and breast pump kits.
4165	4165	11 This item (46) is exempt from the provisions of Section
4166	4166	12 2-70. As used in this item (46):
4167	4167	13 "Breast pump" means an electrically controlled or
4168	4168	14 manually controlled pump device designed or marketed to be
4169	4169	15 used to express milk from a human breast during lactation,
4170	4170	16 including the pump device and any battery, AC adapter, or
4171	4171	17 other power supply unit that is used to power the pump
4172	4172	18 device and is packaged and sold with the pump device at the
4173	4173	19 time of sale.
4174	4174	20 "Breast pump collection and storage supplies" means
4175	4175	21 items of tangible personal property designed or marketed
4176	4176	22 to be used in conjunction with a breast pump to collect
4177	4177	23 milk expressed from a human breast and to store collected
4178	4178	24 milk until it is ready for consumption.
4179	4179	25 "Breast pump collection and storage supplies"
4180	4180	26 includes, but is not limited to: breast shields and breast
4181	4181
4182	4182
4183	4183
4184	4184
4185	4185
4186	4186	HB4688 - 115 - LRB103 36580 HLH 66689 b
4187	4187
4188	4188
4189	4189	HB4688- 116 -LRB103 36580 HLH 66689 b HB4688 - 116 - LRB103 36580 HLH 66689 b
4190	4190	HB4688 - 116 - LRB103 36580 HLH 66689 b
4191	4191	1 shield connectors; breast pump tubes and tubing adapters;
4192	4192	2 breast pump valves and membranes; backflow protectors and
4193	4193	3 backflow protector adaptors; bottles and bottle caps
4194	4194	4 specific to the operation of the breast pump; and breast
4195	4195	5 milk storage bags.
4196	4196	6 "Breast pump collection and storage supplies" does not
4197	4197	7 include: (1) bottles and bottle caps not specific to the
4198	4198	8 operation of the breast pump; (2) breast pump travel bags
4199	4199	9 and other similar carrying accessories, including ice
4200	4200	10 packs, labels, and other similar products; (3) breast pump
4201	4201	11 cleaning supplies; (4) nursing bras, bra pads, breast
4202	4202	12 shells, and other similar products; and (5) creams,
4203	4203	13 ointments, and other similar products that relieve
4204	4204	14 breastfeeding-related symptoms or conditions of the
4205	4205	15 breasts or nipples, unless sold as part of a breast pump
4206	4206	16 kit that is pre-packaged by the breast pump manufacturer
4207	4207	17 or distributor.
4208	4208	18 "Breast pump kit" means a kit that: (1) contains no
4209	4209	19 more than a breast pump, breast pump collection and
4210	4210	20 storage supplies, a rechargeable battery for operating the
4211	4211	21 breast pump, a breastmilk cooler, bottle stands, ice
4212	4212	22 packs, and a breast pump carrying case; and (2) is
4213	4213	23 pre-packaged as a breast pump kit by the breast pump
4214	4214	24 manufacturer or distributor.
4215	4215	25 (47) Tangible personal property sold by or on behalf
4216	4216	26 of the State Treasurer pursuant to the Revised Uniform
4217	4217
4218	4218
4219	4219
4220	4220
4221	4221
4222	4222	HB4688 - 116 - LRB103 36580 HLH 66689 b
4223	4223
4224	4224
4225	4225	HB4688- 117 -LRB103 36580 HLH 66689 b HB4688 - 117 - LRB103 36580 HLH 66689 b
4226	4226	HB4688 - 117 - LRB103 36580 HLH 66689 b
4227	4227	1 Unclaimed Property Act. This item (47) is exempt from the
4228	4228	2 provisions of Section 2-70.
4229	4229	3 (48) Beginning on January 1, 2024, tangible personal
4230	4230	4 property purchased by an active duty member of the armed
4231	4231	5 forces of the United States who presents valid military
4232	4232	6 identification and purchases the property using a form of
4233	4233	7 payment where the federal government is the payor. The
4234	4234	8 member of the armed forces must complete, at the point of
4235	4235	9 sale, a form prescribed by the Department of Revenue
4236	4236	10 documenting that the transaction is eligible for the
4237	4237	11 exemption under this paragraph. Retailers must keep the
4238	4238	12 form as documentation of the exemption in their records
4239	4239	13 for a period of not less than 6 years. "Armed forces of the
4240	4240	14 United States" means the United States Army, Navy, Air
4241	4241	15 Force, Marine Corps, or Coast Guard. This paragraph is
4242	4242	16 exempt from the provisions of Section 2-70.
4243	4243	17 (49) Beginning on July 1, 2024, food for human
4244	4244	18 consumption that is to be consumed off the premises where
4245	4245	19 it is sold (other than alcoholic beverages, food
4246	4246	20 consisting of or infused with adult use cannabis, soft
4247	4247	21 drinks, and food that has been prepared for immediate
4248	4248	22 consumption). This item (49) is exempt from the provisions
4249	4249	23 of Section 2-70.
4250	4250	24 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
4251	4251	25 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
4252	4252	26 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
4253	4253
4254	4254
4255	4255
4256	4256
4257	4257
4258	4258	HB4688 - 117 - LRB103 36580 HLH 66689 b
4259	4259
4260	4260
4261	4261	HB4688- 118 -LRB103 36580 HLH 66689 b HB4688 - 118 - LRB103 36580 HLH 66689 b
4262	4262	HB4688 - 118 - LRB103 36580 HLH 66689 b
4263	4263	1 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
4264	4264	2 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
4265	4265	3 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
4266	4266	4 12-12-23.)
4267	4267	5 (35 ILCS 120/2-10)
4268	4268	6 Sec. 2-10. Rate of tax. Unless otherwise provided in this
4269	4269	7 Section, the tax imposed by this Act is at the rate of 6.25% of
4270	4270	8 gross receipts from sales of tangible personal property made
4271	4271	9 in the course of business.
4272	4272	10 Beginning on July 1, 2000 and through December 31, 2000,
4273	4273	11 with respect to motor fuel, as defined in Section 1.1 of the
4274	4274	12 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4275	4275	13 the Use Tax Act, the tax is imposed at the rate of 1.25%.
4276	4276	14 Beginning 30 days after the effective date of this
4277	4277	15 amendatory Act of the 103rd General Assembly, with respect to:
4278	4278	16 motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
4279	4279	17 Law; gasohol, as defined in Section 3-40 of the Use Tax Act;
4280	4280	18 majority blended ethanol fuel; and biodiesel and biodiesel
4281	4281	19 blends, the tax imposed under this Act may not exceed the cents
4282	4282	20 per gallon rate established by the Department under subsection
4283	4283	21 (e) of Section 2d of this Act. With respect to the tax imposed
4284	4284	22 on biodiesel blends and gasohol, the maximum cents per gallon
4285	4285	23 rate shall include the reduction allowed in subsection (e) of
4286	4286	24 Section 2d of the Retailers' Occupation Tax Act.
4287	4287	25 Beginning on August 6, 2010 through August 15, 2010, and
4288	4288
4289	4289
4290	4290
4291	4291
4292	4292
4293	4293	HB4688 - 118 - LRB103 36580 HLH 66689 b
4294	4294
4295	4295
4296	4296	HB4688- 119 -LRB103 36580 HLH 66689 b HB4688 - 119 - LRB103 36580 HLH 66689 b
4297	4297	HB4688 - 119 - LRB103 36580 HLH 66689 b
4298	4298	1 beginning again on August 5, 2022 through August 14, 2022,
4299	4299	2 with respect to sales tax holiday items as defined in Section
4300	4300	3 2-8 of this Act, the tax is imposed at the rate of 1.25%.
4301	4301	4 Within 14 days after July 1, 2000 (the effective date of
4302	4302	5 Public Act 91-872), each retailer of motor fuel and gasohol
4303	4303	6 shall cause the following notice to be posted in a prominently
4304	4304	7 visible place on each retail dispensing device that is used to
4305	4305	8 dispense motor fuel or gasohol in the State of Illinois: "As of
4306	4306	9 July 1, 2000, the State of Illinois has eliminated the State's
4307	4307	10 share of sales tax on motor fuel and gasohol through December
4308	4308	11 31, 2000. The price on this pump should reflect the
4309	4309	12 elimination of the tax." The notice shall be printed in bold
4310	4310	13 print on a sign that is no smaller than 4 inches by 8 inches.
4311	4311	14 The sign shall be clearly visible to customers. Any retailer
4312	4312	15 who fails to post or maintain a required sign through December
4313	4313	16 31, 2000 is guilty of a petty offense for which the fine shall
4314	4314	17 be $500 per day per each retail premises where a violation
4315	4315	18 occurs.
4316	4316	19 With respect to gasohol, as defined in the Use Tax Act, the
4317	4317	20 tax imposed by this Act applies to (i) 70% of the proceeds of
4318	4318	21 sales made on or after January 1, 1990, and before July 1,
4319	4319	22 2003, (ii) 80% of the proceeds of sales made on or after July
4320	4320	23 1, 2003 and on or before July 1, 2017, (iii) 100% of the
4321	4321	24 proceeds of sales made after July 1, 2017 and prior to January
4322	4322	25 1, 2024, (iv) 90% of the proceeds of sales made on or after
4323	4323	26 January 1, 2024 and on or before December 31, 2028, and (v)
4324	4324
4325	4325
4326	4326
4327	4327
4328	4328
4329	4329	HB4688 - 119 - LRB103 36580 HLH 66689 b
4330	4330
4331	4331
4332	4332	HB4688- 120 -LRB103 36580 HLH 66689 b HB4688 - 120 - LRB103 36580 HLH 66689 b
4333	4333	HB4688 - 120 - LRB103 36580 HLH 66689 b
4334	4334	1 100% of the proceeds of sales made after December 31, 2028. If,
4335	4335	2 at any time, however, the tax under this Act on sales of
4336	4336	3 gasohol, as defined in the Use Tax Act, is imposed at the rate
4337	4337	4 of 1.25%, then the tax imposed by this Act applies to 100% of
4338	4338	5 the proceeds of sales of gasohol made during that time.
4339	4339	6 With respect to mid-range ethanol blends, as defined in
4340	4340	7 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4341	4341	8 applies to (i) 80% of the proceeds of sales made on or after
4342	4342	9 January 1, 2024 and on or before December 31, 2028 and (ii)
4343	4343	10 100% of the proceeds of sales made after December 31, 2028. If,
4344	4344	11 at any time, however, the tax under this Act on sales of
4345	4345	12 mid-range ethanol blends is imposed at the rate of 1.25%, then
4346	4346	13 the tax imposed by this Act applies to 100% of the proceeds of
4347	4347	14 sales of mid-range ethanol blends made during that time.
4348	4348	15 With respect to majority blended ethanol fuel, as defined
4349	4349	16 in the Use Tax Act, the tax imposed by this Act does not apply
4350	4350	17 to the proceeds of sales made on or after July 1, 2003 and on
4351	4351	18 or before December 31, 2028 but applies to 100% of the proceeds
4352	4352	19 of sales made thereafter.
4353	4353	20 With respect to biodiesel blends, as defined in the Use
4354	4354	21 Tax Act, with no less than 1% and no more than 10% biodiesel,
4355	4355	22 the tax imposed by this Act applies to (i) 80% of the proceeds
4356	4356	23 of sales made on or after July 1, 2003 and on or before
4357	4357	24 December 31, 2018 and (ii) 100% of the proceeds of sales made
4358	4358	25 after December 31, 2018 and before January 1, 2024. On and
4359	4359	26 after January 1, 2024 and on or before December 31, 2030, the
4360	4360
4361	4361
4362	4362
4363	4363
4364	4364
4365	4365	HB4688 - 120 - LRB103 36580 HLH 66689 b
4366	4366
4367	4367
4368	4368	HB4688- 121 -LRB103 36580 HLH 66689 b HB4688 - 121 - LRB103 36580 HLH 66689 b
4369	4369	HB4688 - 121 - LRB103 36580 HLH 66689 b
4370	4370	1 taxation of biodiesel, renewable diesel, and biodiesel blends
4371	4371	2 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4372	4372	3 at any time, however, the tax under this Act on sales of
4373	4373	4 biodiesel blends, as defined in the Use Tax Act, with no less
4374	4374	5 than 1% and no more than 10% biodiesel is imposed at the rate
4375	4375	6 of 1.25%, then the tax imposed by this Act applies to 100% of
4376	4376	7 the proceeds of sales of biodiesel blends with no less than 1%
4377	4377	8 and no more than 10% biodiesel made during that time.
4378	4378	9 With respect to biodiesel, as defined in the Use Tax Act,
4379	4379	10 and biodiesel blends, as defined in the Use Tax Act, with more
4380	4380	11 than 10% but no more than 99% biodiesel, the tax imposed by
4381	4381	12 this Act does not apply to the proceeds of sales made on or
4382	4382	13 after July 1, 2003 and on or before December 31, 2023. On and
4383	4383	14 after January 1, 2024 and on or before December 31, 2030, the
4384	4384	15 taxation of biodiesel, renewable diesel, and biodiesel blends
4385	4385	16 shall be as provided in Section 3-5.1 of the Use Tax Act.
4386	4386	17 Until July 1, 2022 and from beginning again on July 1, 2023
4387	4387	18 through June 30, 2024, with respect to food for human
4388	4388	19 consumption that is to be consumed off the premises where it is
4389	4389	20 sold (other than alcoholic beverages, food consisting of or
4390	4390	21 infused with adult use cannabis, soft drinks, and food that
4391	4391	22 has been prepared for immediate consumption), the tax is
4392	4392	23 imposed at the rate of 1%. From Beginning July 1, 2022 through
4393	4393	24 and until July 1, 2023, and on and after July 1, 2024, with
4394	4394	25 respect to food for human consumption that is to be consumed
4395	4395	26 off the premises where it is sold (other than alcoholic
4396	4396
4397	4397
4398	4398
4399	4399
4400	4400
4401	4401	HB4688 - 121 - LRB103 36580 HLH 66689 b
4402	4402
4403	4403
4404	4404	HB4688- 122 -LRB103 36580 HLH 66689 b HB4688 - 122 - LRB103 36580 HLH 66689 b
4405	4405	HB4688 - 122 - LRB103 36580 HLH 66689 b
4406	4406	1 beverages, food consisting of or infused with adult use
4407	4407	2 cannabis, soft drinks, and food that has been prepared for
4408	4408	3 immediate consumption) is exempt from the tax imposed by this
4409	4409	4 Act , the tax is imposed at the rate of 0%.
4410	4410	5 With respect to prescription and nonprescription
4411	4411	6 medicines, drugs, medical appliances, products classified as
4412	4412	7 Class III medical devices by the United States Food and Drug
4413	4413	8 Administration that are used for cancer treatment pursuant to
4414	4414	9 a prescription, as well as any accessories and components
4415	4415	10 related to those devices, modifications to a motor vehicle for
4416	4416	11 the purpose of rendering it usable by a person with a
4417	4417	12 disability, and insulin, blood sugar testing materials,
4418	4418	13 syringes, and needles used by human diabetics, the tax is
4419	4419	14 imposed at the rate of 1%. For the purposes of this Section,
4420	4420	15 until September 1, 2009: the term "soft drinks" means any
4421	4421	16 complete, finished, ready-to-use, non-alcoholic drink, whether
4422	4422	17 carbonated or not, including, but not limited to, soda water,
4423	4423	18 cola, fruit juice, vegetable juice, carbonated water, and all
4424	4424	19 other preparations commonly known as soft drinks of whatever
4425	4425	20 kind or description that are contained in any closed or sealed
4426	4426	21 bottle, can, carton, or container, regardless of size; but
4427	4427	22 "soft drinks" does not include coffee, tea, non-carbonated
4428	4428	23 water, infant formula, milk or milk products as defined in the
4429	4429	24 Grade A Pasteurized Milk and Milk Products Act, or drinks
4430	4430	25 containing 50% or more natural fruit or vegetable juice.
4431	4431	26 Notwithstanding any other provisions of this Act,
4432	4432
4433	4433
4434	4434
4435	4435
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4442	4442	1 beginning September 1, 2009, "soft drinks" means non-alcoholic
4443	4443	2 beverages that contain natural or artificial sweeteners. "Soft
4444	4444	3 drinks" does not include beverages that contain milk or milk
4445	4445	4 products, soy, rice or similar milk substitutes, or greater
4446	4446	5 than 50% of vegetable or fruit juice by volume.
4447	4447	6 Until August 1, 2009, and notwithstanding any other
4448	4448	7 provisions of this Act, "food for human consumption that is to
4449	4449	8 be consumed off the premises where it is sold" includes all
4450	4450	9 food sold through a vending machine, except soft drinks and
4451	4451	10 food products that are dispensed hot from a vending machine,
4452	4452	11 regardless of the location of the vending machine. Beginning
4453	4453	12 August 1, 2009, and notwithstanding any other provisions of
4454	4454	13 this Act, "food for human consumption that is to be consumed
4455	4455	14 off the premises where it is sold" includes all food sold
4456	4456	15 through a vending machine, except soft drinks, candy, and food
4457	4457	16 products that are dispensed hot from a vending machine,
4458	4458	17 regardless of the location of the vending machine.
4459	4459	18 Notwithstanding any other provisions of this Act,
4460	4460	19 beginning September 1, 2009, "food for human consumption that
4461	4461	20 is to be consumed off the premises where it is sold" does not
4462	4462	21 include candy. For purposes of this Section, "candy" means a
4463	4463	22 preparation of sugar, honey, or other natural or artificial
4464	4464	23 sweeteners in combination with chocolate, fruits, nuts or
4465	4465	24 other ingredients or flavorings in the form of bars, drops, or
4466	4466	25 pieces. "Candy" does not include any preparation that contains
4467	4467	26 flour or requires refrigeration.
4468	4468
4469	4469
4470	4470
4471	4471
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4478	4478	1 Notwithstanding any other provisions of this Act,
4479	4479	2 beginning September 1, 2009, "nonprescription medicines and
4480	4480	3 drugs" does not include grooming and hygiene products. For
4481	4481	4 purposes of this Section, "grooming and hygiene products"
4482	4482	5 includes, but is not limited to, soaps and cleaning solutions,
4483	4483	6 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4484	4484	7 lotions and screens, unless those products are available by
4485	4485	8 prescription only, regardless of whether the products meet the
4486	4486	9 definition of "over-the-counter-drugs". For the purposes of
4487	4487	10 this paragraph, "over-the-counter-drug" means a drug for human
4488	4488	11 use that contains a label that identifies the product as a drug
4489	4489	12 as required by 21 CFR 201.66. The "over-the-counter-drug"
4490	4490	13 label includes:
4491	4491	14 (A) a "Drug Facts" panel; or
4492	4492	15 (B) a statement of the "active ingredient(s)" with a
4493	4493	16 list of those ingredients contained in the compound,
4494	4494	17 substance or preparation.
4495	4495	18 Beginning on January 1, 2014 (the effective date of Public
4496	4496	19 Act 98-122), "prescription and nonprescription medicines and
4497	4497	20 drugs" includes medical cannabis purchased from a registered
4498	4498	21 dispensing organization under the Compassionate Use of Medical
4499	4499	22 Cannabis Program Act.
4500	4500	23 As used in this Section, "adult use cannabis" means
4501	4501	24 cannabis subject to tax under the Cannabis Cultivation
4502	4502	25 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4503	4503	26 and does not include cannabis subject to tax under the
4504	4504
4505	4505
4506	4506
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4514	4514	1 Compassionate Use of Medical Cannabis Program Act.
4515	4515	2 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
4516	4516	3 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
4517	4517	4 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
4518	4518	5 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
4519	4519	6 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
4520	4520	7 Sec. 2d. Tax prepayment by motor fuel retailer.
4521	4521	8 (a) Any person engaged in the business of selling motor
4522	4522	9 fuel at retail, as defined in the Motor Fuel Tax Law, and who
4523	4523	10 is not a licensed distributor or supplier, as defined in the
4524	4524	11 Motor Fuel Tax Law, shall prepay to his or her distributor,
4525	4525	12 supplier, or other reseller of motor fuel a portion of the tax
4526	4526	13 imposed by this Act if the distributor, supplier, or other
4527	4527	14 reseller of motor fuel is registered under Section 2a or
4528	4528	15 Section 2c of this Act. The prepayment requirement provided
4529	4529	16 for in this Section does not apply to liquid propane gas.
4530	4530	17 (b) Beginning on July 1, 2000 and through December 31,
4531	4531	18 2000, the Retailers' Occupation Tax paid to the distributor,
4532	4532	19 supplier, or other reseller shall be an amount equal to $0.01
4533	4533	20 per gallon of the motor fuel, except gasohol as defined in
4534	4534	21 Section 2-10 of this Act which shall be an amount equal to
4535	4535	22 $0.01 per gallon, purchased from the distributor, supplier, or
4536	4536	23 other reseller.
4537	4537	24 (c) Before July 1, 2000 and then beginning on January 1,
4538	4538	25 2001 and through June 30, 2003, the Retailers' Occupation Tax
4539	4539
4540	4540
4541	4541
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4548	4548	HB4688 - 126 - LRB103 36580 HLH 66689 b
4549	4549	1 paid to the distributor, supplier, or other reseller shall be
4550	4550	2 an amount equal to $0.04 per gallon of the motor fuel, except
4551	4551	3 gasohol as defined in Section 2-10 of this Act which shall be
4552	4552	4 an amount equal to $0.03 per gallon, purchased from the
4553	4553	5 distributor, supplier, or other reseller.
4554	4554	6 (d) Beginning July 1, 2003 and through December 31, 2010,
4555	4555	7 the Retailers' Occupation Tax paid to the distributor,
4556	4556	8 supplier, or other reseller shall be an amount equal to $0.06
4557	4557	9 per gallon of the motor fuel, except gasohol as defined in
4558	4558	10 Section 2-10 of this Act which shall be an amount equal to
4559	4559	11 $0.05 per gallon, purchased from the distributor, supplier, or
4560	4560	12 other reseller.
4561	4561	13 (e) Beginning on January 1, 2011 and thereafter, the
4562	4562	14 Retailers' Occupation Tax paid to the distributor, supplier,
4563	4563	15 or other reseller shall be at the rate established by the
4564	4564	16 Department under this subsection. The rate shall be
4565	4565	17 established by the Department on January 1 and July 1 of each
4566	4566	18 year using the average selling price, as defined in Section 1
4567	4567	19 of this Act, per gallon of motor fuel sold in the State during
4568	4568	20 the previous 6 months and multiplying that amount by 6.25% to
4569	4569	21 determine the cents per gallon rate. Beginning 30 days after
4570	4570	22 the effective date of this amendatory Act of the 103rd General
4571	4571	23 Assembly, the cents per gallon rate established by the
4572	4572	24 Department for motor fuel under this subsection may not exceed
4573	4573	25 $0.18 per gallon. Beginning on January 1, 2024 and through
4574	4574	26 December 31, 2028, in the case of gasohol, as defined in
4575	4575
4576	4576
4577	4577
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4585	4585	1 Section 3-40 of the Use Tax Act, the rate shall be 90% of the
4586	4586	2 rate established by the Department under this subsection for
4587	4587	3 motor fuel. Beginning on January 1, 2024 and through December
4588	4588	4 31, 2028, in the case of mid-range ethanol blends, as defined
4589	4589	5 in Section 3-44.3 of the Use Tax Act, the rate shall be 80% of
4590	4590	6 the rate established by the Department under this subsection
4591	4591	7 for motor fuel. The Department shall provide persons subject
4592	4592	8 to this Section notice of the rate established under this
4593	4593	9 subsection at least 20 days prior to each January 1 and July 1.
4594	4594	10 The Department shall provide persons subject to this Section
4595	4595	11 notice of the rate change required by this amendatory Act of
4596	4596	12 the 103rd General Assembly at least 20 days prior to the date
4597	4597	13 on which that change takes effect. Publication of the
4598	4598	14 established rate on the Department's internet website shall
4599	4599	15 constitute sufficient notice under this Section. The
4600	4600	16 Department may use data derived from independent surveys
4601	4601	17 conducted or accumulated by third parties to determine the
4602	4602	18 average selling price per gallon of motor fuel sold in the
4603	4603	19 State.
4604	4604	20 (f) Any person engaged in the business of selling motor
4605	4605	21 fuel at retail shall be entitled to a credit against tax due
4606	4606	22 under this Act in an amount equal to the tax paid to the
4607	4607	23 distributor, supplier, or other reseller.
4608	4608	24 (g) Every distributor, supplier, or other reseller
4609	4609	25 registered as provided in Section 2a or Section 2c of this Act
4610	4610	26 shall remit the prepaid tax on all motor fuel that is due from
4611	4611
4612	4612
4613	4613
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4621	4621	1 any person engaged in the business of selling at retail motor
4622	4622	2 fuel with the returns filed under Section 2f or Section 3 of
4623	4623	3 this Act, but the vendors discount provided in Section 3 shall
4624	4624	4 not apply to the amount of prepaid tax that is remitted. Any
4625	4625	5 distributor or supplier who fails to properly collect and
4626	4626	6 remit the tax shall be liable for the tax. For purposes of this
4627	4627	7 Section, the prepaid tax is due on invoiced gallons sold
4628	4628	8 during a month by the 20th day of the following month.
4629	4629	9 (Source: P.A. 103-9, eff. 6-7-23.)
4630	4630
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