Illinois 2023-2024 Regular Session

Illinois House Bill HB5577 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 HB5577 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 105/3-1035 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 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for medical appliances, including, but not limited to, devices used to treat amyotrophic lateral sclerosis. Effective January 1, 2025. LRB103 38816 HLH 68953 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5577 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 105/3-1035 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 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for medical appliances, including, but not limited to, devices used to treat amyotrophic lateral sclerosis. Effective January 1, 2025. LRB103 38816 HLH 68953 b LRB103 38816 HLH 68953 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5577 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-535 ILCS 105/3-1035 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 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10
4	4	35 ILCS 105/3-5
5	5	35 ILCS 105/3-10
6	6	35 ILCS 110/3-5
7	7	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
8	8	35 ILCS 115/3-5
9	9	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
10	10	35 ILCS 120/2-5
11	11	35 ILCS 120/2-10
12	12	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for medical appliances, including, but not limited to, devices used to treat amyotrophic lateral sclerosis. Effective January 1, 2025.
13	13	LRB103 38816 HLH 68953 b LRB103 38816 HLH 68953 b
14	14	LRB103 38816 HLH 68953 b
15	15	A BILL FOR
16	16	HB5577LRB103 38816 HLH 68953 b HB5577 LRB103 38816 HLH 68953 b
17	17	HB5577 LRB103 38816 HLH 68953 b
18	18	1 AN ACT concerning revenue.
19	19	2 Be it enacted by the People of the State of Illinois,
20	20	3 represented in the General Assembly:
21	21	4 Section 5. The Use Tax Act is amended by changing Sections
22	22	5 3-5 and 3-10 as follows:
23	23	6 (35 ILCS 105/3-5)
24	24	7 Sec. 3-5. Exemptions. Use of the following tangible
25	25	8 personal property is exempt from the tax imposed by this Act:
26	26	9 (1) Personal property purchased from a corporation,
27	27	10 society, association, foundation, institution, or
28	28	11 organization, other than a limited liability company, that is
29	29	12 organized and operated as a not-for-profit service enterprise
30	30	13 for the benefit of persons 65 years of age or older if the
31	31	14 personal property was not purchased by the enterprise for the
32	32	15 purpose of resale by the enterprise.
33	33	16 (2) Personal property purchased by a not-for-profit
34	34	17 Illinois county fair association for use in conducting,
35	35	18 operating, or promoting the county fair.
36	36	19 (3) Personal property purchased by a not-for-profit arts
37	37	20 or cultural organization that establishes, by proof required
38	38	21 by the Department by rule, that it has received an exemption
39	39	22 under Section 501(c)(3) of the Internal Revenue Code and that
40	40	23 is organized and operated primarily for the presentation or
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44	44	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5577 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
45	45	35 ILCS 105/3-535 ILCS 105/3-1035 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 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10
46	46	35 ILCS 105/3-5
47	47	35 ILCS 105/3-10
48	48	35 ILCS 110/3-5
49	49	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
50	50	35 ILCS 115/3-5
51	51	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
52	52	35 ILCS 120/2-5
53	53	35 ILCS 120/2-10
54	54	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for medical appliances, including, but not limited to, devices used to treat amyotrophic lateral sclerosis. Effective January 1, 2025.
55	55	LRB103 38816 HLH 68953 b LRB103 38816 HLH 68953 b
56	56	LRB103 38816 HLH 68953 b
57	57	A BILL FOR
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63	63	35 ILCS 105/3-5
64	64	35 ILCS 105/3-10
65	65	35 ILCS 110/3-5
66	66	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
67	67	35 ILCS 115/3-5
68	68	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
69	69	35 ILCS 120/2-5
70	70	35 ILCS 120/2-10
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89	89	1 support of arts or cultural programming, activities, or
90	90	2 services. These organizations include, but are not limited to,
91	91	3 music and dramatic arts organizations such as symphony
92	92	4 orchestras and theatrical groups, arts and cultural service
93	93	5 organizations, local arts councils, visual arts organizations,
94	94	6 and media arts organizations. On and after July 1, 2001 (the
95	95	7 effective date of Public Act 92-35), however, an entity
96	96	8 otherwise eligible for this exemption shall not make tax-free
97	97	9 purchases unless it has an active identification number issued
98	98	10 by the Department.
99	99	11 (4) Except as otherwise provided in this Act, personal
100	100	12 property purchased by a governmental body, by a corporation,
101	101	13 society, association, foundation, or institution organized and
102	102	14 operated exclusively for charitable, religious, or educational
103	103	15 purposes, or by a not-for-profit corporation, society,
104	104	16 association, foundation, institution, or organization that has
105	105	17 no compensated officers or employees and that is organized and
106	106	18 operated primarily for the recreation of persons 55 years of
107	107	19 age or older. A limited liability company may qualify for the
108	108	20 exemption under this paragraph only if the limited liability
109	109	21 company is organized and operated exclusively for educational
110	110	22 purposes. On and after July 1, 1987, however, no entity
111	111	23 otherwise eligible for this exemption shall make tax-free
112	112	24 purchases unless it has an active exemption identification
113	113	25 number issued by the Department.
114	114	26 (5) Until July 1, 2003, a passenger car that is a
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125	125	1 replacement vehicle to the extent that the purchase price of
126	126	2 the car is subject to the Replacement Vehicle Tax.
127	127	3 (6) Until July 1, 2003 and beginning again on September 1,
128	128	4 2004 through August 30, 2014, graphic arts machinery and
129	129	5 equipment, including repair and replacement parts, both new
130	130	6 and used, and including that manufactured on special order,
131	131	7 certified by the purchaser to be used primarily for graphic
132	132	8 arts production, and including machinery and equipment
133	133	9 purchased for lease. Equipment includes chemicals or chemicals
134	134	10 acting as catalysts but only if the chemicals or chemicals
135	135	11 acting as catalysts effect a direct and immediate change upon
136	136	12 a graphic arts product. Beginning on July 1, 2017, graphic
137	137	13 arts machinery and equipment is included in the manufacturing
138	138	14 and assembling machinery and equipment exemption under
139	139	15 paragraph (18).
140	140	16 (7) Farm chemicals.
141	141	17 (8) Legal tender, currency, medallions, or gold or silver
142	142	18 coinage issued by the State of Illinois, the government of the
143	143	19 United States of America, or the government of any foreign
144	144	20 country, and bullion.
145	145	21 (9) Personal property purchased from a teacher-sponsored
146	146	22 student organization affiliated with an elementary or
147	147	23 secondary school located in Illinois.
148	148	24 (10) A motor vehicle that is used for automobile renting,
149	149	25 as defined in the Automobile Renting Occupation and Use Tax
150	150	26 Act.
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161	161	1 (11) Farm machinery and equipment, both new and used,
162	162	2 including that manufactured on special order, certified by the
163	163	3 purchaser to be used primarily for production agriculture or
164	164	4 State or federal agricultural programs, including individual
165	165	5 replacement parts for the machinery and equipment, including
166	166	6 machinery and equipment purchased for lease, and including
167	167	7 implements of husbandry defined in Section 1-130 of the
168	168	8 Illinois Vehicle Code, farm machinery and agricultural
169	169	9 chemical and fertilizer spreaders, and nurse wagons required
170	170	10 to be registered under Section 3-809 of the Illinois Vehicle
171	171	11 Code, but excluding other motor vehicles required to be
172	172	12 registered under the Illinois Vehicle Code. Horticultural
173	173	13 polyhouses or hoop houses used for propagating, growing, or
174	174	14 overwintering plants shall be considered farm machinery and
175	175	15 equipment under this item (11). Agricultural chemical tender
176	176	16 tanks and dry boxes shall include units sold separately from a
177	177	17 motor vehicle required to be licensed and units sold mounted
178	178	18 on a motor vehicle required to be licensed if the selling price
179	179	19 of the tender is separately stated.
180	180	20 Farm machinery and equipment shall include precision
181	181	21 farming equipment that is installed or purchased to be
182	182	22 installed on farm machinery and equipment, including, but not
183	183	23 limited to, tractors, harvesters, sprayers, planters, seeders,
184	184	24 or spreaders. Precision farming equipment includes, but is not
185	185	25 limited to, soil testing sensors, computers, monitors,
186	186	26 software, global positioning and mapping systems, and other
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197	197	1 such equipment.
198	198	2 Farm machinery and equipment also includes computers,
199	199	3 sensors, software, and related equipment used primarily in the
200	200	4 computer-assisted operation of production agriculture
201	201	5 facilities, equipment, and activities such as, but not limited
202	202	6 to, the collection, monitoring, and correlation of animal and
203	203	7 crop data for the purpose of formulating animal diets and
204	204	8 agricultural chemicals.
205	205	9 Beginning on January 1, 2024, farm machinery and equipment
206	206	10 also includes electrical power generation equipment used
207	207	11 primarily for production agriculture.
208	208	12 This item (11) is exempt from the provisions of Section
209	209	13 3-90.
210	210	14 (12) Until June 30, 2013, fuel and petroleum products sold
211	211	15 to or used by an air common carrier, certified by the carrier
212	212	16 to be used for consumption, shipment, or storage in the
213	213	17 conduct of its business as an air common carrier, for a flight
214	214	18 destined for or returning from a location or locations outside
215	215	19 the United States without regard to previous or subsequent
216	216	20 domestic stopovers.
217	217	21 Beginning July 1, 2013, fuel and petroleum products sold
218	218	22 to or used by an air carrier, certified by the carrier to be
219	219	23 used for consumption, shipment, or storage in the conduct of
220	220	24 its business as an air common carrier, for a flight that (i) is
221	221	25 engaged in foreign trade or is engaged in trade between the
222	222	26 United States and any of its possessions and (ii) transports
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233	233	1 at least one individual or package for hire from the city of
234	234	2 origination to the city of final destination on the same
235	235	3 aircraft, without regard to a change in the flight number of
236	236	4 that aircraft.
237	237	5 (13) Proceeds of mandatory service charges separately
238	238	6 stated on customers' bills for the purchase and consumption of
239	239	7 food and beverages purchased at retail from a retailer, to the
240	240	8 extent that the proceeds of the service charge are in fact
241	241	9 turned over as tips or as a substitute for tips to the
242	242	10 employees who participate directly in preparing, serving,
243	243	11 hosting or cleaning up the food or beverage function with
244	244	12 respect to which the service charge is imposed.
245	245	13 (14) Until July 1, 2003, oil field exploration, drilling,
246	246	14 and production equipment, including (i) rigs and parts of
247	247	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
248	248	16 pipe and tubular goods, including casing and drill strings,
249	249	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
250	250	18 lines, (v) any individual replacement part for oil field
251	251	19 exploration, drilling, and production equipment, and (vi)
252	252	20 machinery and equipment purchased for lease; but excluding
253	253	21 motor vehicles required to be registered under the Illinois
254	254	22 Vehicle Code.
255	255	23 (15) Photoprocessing machinery and equipment, including
256	256	24 repair and replacement parts, both new and used, including
257	257	25 that manufactured on special order, certified by the purchaser
258	258	26 to be used primarily for photoprocessing, and including
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269	269	1 photoprocessing machinery and equipment purchased for lease.
270	270	2 (16) Until July 1, 2028, coal and aggregate exploration,
271	271	3 mining, off-highway hauling, processing, maintenance, and
272	272	4 reclamation equipment, including replacement parts and
273	273	5 equipment, and including equipment purchased for lease, but
274	274	6 excluding motor vehicles required to be registered under the
275	275	7 Illinois Vehicle Code. The changes made to this Section by
276	276	8 Public Act 97-767 apply on and after July 1, 2003, but no claim
277	277	9 for credit or refund is allowed on or after August 16, 2013
278	278	10 (the effective date of Public Act 98-456) for such taxes paid
279	279	11 during the period beginning July 1, 2003 and ending on August
280	280	12 16, 2013 (the effective date of Public Act 98-456).
281	281	13 (17) Until July 1, 2003, distillation machinery and
282	282	14 equipment, sold as a unit or kit, assembled or installed by the
283	283	15 retailer, certified by the user to be used only for the
284	284	16 production of ethyl alcohol that will be used for consumption
285	285	17 as motor fuel or as a component of motor fuel for the personal
286	286	18 use of the user, and not subject to sale or resale.
287	287	19 (18) Manufacturing and assembling machinery and equipment
288	288	20 used primarily in the process of manufacturing or assembling
289	289	21 tangible personal property for wholesale or retail sale or
290	290	22 lease, whether that sale or lease is made directly by the
291	291	23 manufacturer or by some other person, whether the materials
292	292	24 used in the process are owned by the manufacturer or some other
293	293	25 person, or whether that sale or lease is made apart from or as
294	294	26 an incident to the seller's engaging in the service occupation
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305	305	1 of producing machines, tools, dies, jigs, patterns, gauges, or
306	306	2 other similar items of no commercial value on special order
307	307	3 for a particular purchaser. The exemption provided by this
308	308	4 paragraph (18) includes production related tangible personal
309	309	5 property, as defined in Section 3-50, purchased on or after
310	310	6 July 1, 2019. The exemption provided by this paragraph (18)
311	311	7 does not include machinery and equipment used in (i) the
312	312	8 generation of electricity for wholesale or retail sale; (ii)
313	313	9 the generation or treatment of natural or artificial gas for
314	314	10 wholesale or retail sale that is delivered to customers
315	315	11 through pipes, pipelines, or mains; or (iii) the treatment of
316	316	12 water for wholesale or retail sale that is delivered to
317	317	13 customers through pipes, pipelines, or mains. The provisions
318	318	14 of Public Act 98-583 are declaratory of existing law as to the
319	319	15 meaning and scope of this exemption. Beginning on July 1,
320	320	16 2017, the exemption provided by this paragraph (18) includes,
321	321	17 but is not limited to, graphic arts machinery and equipment,
322	322	18 as defined in paragraph (6) of this Section.
323	323	19 (19) Personal property delivered to a purchaser or
324	324	20 purchaser's donee inside Illinois when the purchase order for
325	325	21 that personal property was received by a florist located
326	326	22 outside Illinois who has a florist located inside Illinois
327	327	23 deliver the personal property.
328	328	24 (20) Semen used for artificial insemination of livestock
329	329	25 for direct agricultural production.
330	330	26 (21) Horses, or interests in horses, registered with and
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341	341	1 meeting the requirements of any of the Arabian Horse Club
342	342	2 Registry of America, Appaloosa Horse Club, American Quarter
343	343	3 Horse Association, United States Trotting Association, or
344	344	4 Jockey Club, as appropriate, used for purposes of breeding or
345	345	5 racing for prizes. This item (21) is exempt from the
346	346	6 provisions of Section 3-90, and the exemption provided for
347	347	7 under this item (21) applies for all periods beginning May 30,
348	348	8 1995, but no claim for credit or refund is allowed on or after
349	349	9 January 1, 2008 for such taxes paid during the period
350	350	10 beginning May 30, 2000 and ending on January 1, 2008.
351	351	11 (22) Computers and communications equipment utilized for
352	352	12 any hospital purpose and equipment used in the diagnosis,
353	353	13 analysis, or treatment of hospital patients purchased by a
354	354	14 lessor who leases the equipment, under a lease of one year or
355	355	15 longer executed or in effect at the time the lessor would
356	356	16 otherwise be subject to the tax imposed by this Act, to a
357	357	17 hospital that has been issued an active tax exemption
358	358	18 identification number by the Department under Section 1g of
359	359	19 the Retailers' Occupation Tax Act. If the equipment is leased
360	360	20 in a manner that does not qualify for this exemption or is used
361	361	21 in any other non-exempt manner, the lessor shall be liable for
362	362	22 the tax imposed under this Act or the Service Use Tax Act, as
363	363	23 the case may be, based on the fair market value of the property
364	364	24 at the time the non-qualifying use occurs. No lessor shall
365	365	25 collect or attempt to collect an amount (however designated)
366	366	26 that purports to reimburse that lessor for the tax imposed by
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377	377	1 this Act or the Service Use Tax Act, as the case may be, if the
378	378	2 tax has not been paid by the lessor. If a lessor improperly
379	379	3 collects any such amount from the lessee, the lessee shall
380	380	4 have a legal right to claim a refund of that amount from the
381	381	5 lessor. If, however, that amount is not refunded to the lessee
382	382	6 for any reason, the lessor is liable to pay that amount to the
383	383	7 Department.
384	384	8 (23) Personal property purchased by a lessor who leases
385	385	9 the property, under a lease of one year or longer executed or
386	386	10 in effect at the time the lessor would otherwise be subject to
387	387	11 the tax imposed by this Act, to a governmental body that has
388	388	12 been issued an active sales tax exemption identification
389	389	13 number by the Department under Section 1g of the Retailers'
390	390	14 Occupation Tax Act. If the property is leased in a manner that
391	391	15 does not qualify for this exemption or used in any other
392	392	16 non-exempt manner, the lessor shall be liable for the tax
393	393	17 imposed under this Act or the Service Use Tax Act, as the case
394	394	18 may be, based on the fair market value of the property at the
395	395	19 time the non-qualifying use occurs. No lessor shall collect or
396	396	20 attempt to collect an amount (however designated) that
397	397	21 purports to reimburse that lessor for the tax imposed by this
398	398	22 Act or the Service Use Tax Act, as the case may be, if the tax
399	399	23 has not been paid by the lessor. If a lessor improperly
400	400	24 collects any such amount from the lessee, the lessee shall
401	401	25 have a legal right to claim a refund of that amount from the
402	402	26 lessor. If, however, that amount is not refunded to the lessee
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413	413	1 for any reason, the lessor is liable to pay that amount to the
414	414	2 Department.
415	415	3 (24) Beginning with taxable years ending on or after
416	416	4 December 31, 1995 and ending with taxable years ending on or
417	417	5 before December 31, 2004, personal property that is donated
418	418	6 for disaster relief to be used in a State or federally declared
419	419	7 disaster area in Illinois or bordering Illinois by a
420	420	8 manufacturer or retailer that is registered in this State to a
421	421	9 corporation, society, association, foundation, or institution
422	422	10 that has been issued a sales tax exemption identification
423	423	11 number by the Department that assists victims of the disaster
424	424	12 who reside within the declared disaster area.
425	425	13 (25) Beginning with taxable years ending on or after
426	426	14 December 31, 1995 and ending with taxable years ending on or
427	427	15 before December 31, 2004, personal property that is used in
428	428	16 the performance of infrastructure repairs in this State,
429	429	17 including, but not limited to, municipal roads and streets,
430	430	18 access roads, bridges, sidewalks, waste disposal systems,
431	431	19 water and sewer line extensions, water distribution and
432	432	20 purification facilities, storm water drainage and retention
433	433	21 facilities, and sewage treatment facilities, resulting from a
434	434	22 State or federally declared disaster in Illinois or bordering
435	435	23 Illinois when such repairs are initiated on facilities located
436	436	24 in the declared disaster area within 6 months after the
437	437	25 disaster.
438	438	26 (26) Beginning July 1, 1999, game or game birds purchased
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449	449	1 at a "game breeding and hunting preserve area" as that term is
450	450	2 used in the Wildlife Code. This paragraph is exempt from the
451	451	3 provisions of Section 3-90.
452	452	4 (27) A motor vehicle, as that term is defined in Section
453	453	5 1-146 of the Illinois Vehicle Code, that is donated to a
454	454	6 corporation, limited liability company, society, association,
455	455	7 foundation, or institution that is determined by the
456	456	8 Department to be organized and operated exclusively for
457	457	9 educational purposes. For purposes of this exemption, "a
458	458	10 corporation, limited liability company, society, association,
459	459	11 foundation, or institution organized and operated exclusively
460	460	12 for educational purposes" means all tax-supported public
461	461	13 schools, private schools that offer systematic instruction in
462	462	14 useful branches of learning by methods common to public
463	463	15 schools and that compare favorably in their scope and
464	464	16 intensity with the course of study presented in tax-supported
465	465	17 schools, and vocational or technical schools or institutes
466	466	18 organized and operated exclusively to provide a course of
467	467	19 study of not less than 6 weeks duration and designed to prepare
468	468	20 individuals to follow a trade or to pursue a manual,
469	469	21 technical, mechanical, industrial, business, or commercial
470	470	22 occupation.
471	471	23 (28) Beginning January 1, 2000, personal property,
472	472	24 including food, purchased through fundraising events for the
473	473	25 benefit of a public or private elementary or secondary school,
474	474	26 a group of those schools, or one or more school districts if
475	475
476	476
477	477
478	478
479	479
480	480	HB5577 - 12 - LRB103 38816 HLH 68953 b
481	481
482	482
483	483	HB5577- 13 -LRB103 38816 HLH 68953 b HB5577 - 13 - LRB103 38816 HLH 68953 b
484	484	HB5577 - 13 - LRB103 38816 HLH 68953 b
485	485	1 the events are sponsored by an entity recognized by the school
486	486	2 district that consists primarily of volunteers and includes
487	487	3 parents and teachers of the school children. This paragraph
488	488	4 does not apply to fundraising events (i) for the benefit of
489	489	5 private home instruction or (ii) for which the fundraising
490	490	6 entity purchases the personal property sold at the events from
491	491	7 another individual or entity that sold the property for the
492	492	8 purpose of resale by the fundraising entity and that profits
493	493	9 from the sale to the fundraising entity. This paragraph is
494	494	10 exempt from the provisions of Section 3-90.
495	495	11 (29) Beginning January 1, 2000 and through December 31,
496	496	12 2001, new or used automatic vending machines that prepare and
497	497	13 serve hot food and beverages, including coffee, soup, and
498	498	14 other items, and replacement parts for these machines.
499	499	15 Beginning January 1, 2002 and through June 30, 2003, machines
500	500	16 and parts for machines used in commercial, coin-operated
501	501	17 amusement and vending business if a use or occupation tax is
502	502	18 paid on the gross receipts derived from the use of the
503	503	19 commercial, coin-operated amusement and vending machines. This
504	504	20 paragraph is exempt from the provisions of Section 3-90.
505	505	21 (30) Beginning January 1, 2001 and through June 30, 2016,
506	506	22 food for human consumption that is to be consumed off the
507	507	23 premises where it is sold (other than alcoholic beverages,
508	508	24 soft drinks, and food that has been prepared for immediate
509	509	25 consumption) and prescription and nonprescription medicines,
510	510	26 drugs, medical appliances, and insulin, urine testing
511	511
512	512
513	513
514	514
515	515
516	516	HB5577 - 13 - LRB103 38816 HLH 68953 b
517	517
518	518
519	519	HB5577- 14 -LRB103 38816 HLH 68953 b HB5577 - 14 - LRB103 38816 HLH 68953 b
520	520	HB5577 - 14 - LRB103 38816 HLH 68953 b
521	521	1 materials, syringes, and needles used by diabetics, for human
522	522	2 use, when purchased for use by a person receiving medical
523	523	3 assistance under Article V of the Illinois Public Aid Code who
524	524	4 resides in a licensed long-term care facility, as defined in
525	525	5 the Nursing Home Care Act, or in a licensed facility as defined
526	526	6 in the ID/DD Community Care Act, the MC/DD Act, or the
527	527	7 Specialized Mental Health Rehabilitation Act of 2013.
528	528	8 (31) Beginning on August 2, 2001 (the effective date of
529	529	9 Public Act 92-227), computers and communications equipment
530	530	10 utilized for any hospital purpose and equipment used in the
531	531	11 diagnosis, analysis, or treatment of hospital patients
532	532	12 purchased by a lessor who leases the equipment, under a lease
533	533	13 of one year or longer executed or in effect at the time the
534	534	14 lessor would otherwise be subject to the tax imposed by this
535	535	15 Act, to a hospital that has been issued an active tax exemption
536	536	16 identification number by the Department under Section 1g of
537	537	17 the Retailers' Occupation Tax Act. If the equipment is leased
538	538	18 in a manner that does not qualify for this exemption or is used
539	539	19 in any other nonexempt manner, the lessor shall be liable for
540	540	20 the tax imposed under this Act or the Service Use Tax Act, as
541	541	21 the case may be, based on the fair market value of the property
542	542	22 at the time the nonqualifying use occurs. No lessor shall
543	543	23 collect or attempt to collect an amount (however designated)
544	544	24 that purports to reimburse that lessor for the tax imposed by
545	545	25 this Act or the Service Use Tax Act, as the case may be, if the
546	546	26 tax has not been paid by the lessor. If a lessor improperly
547	547
548	548
549	549
550	550
551	551
552	552	HB5577 - 14 - LRB103 38816 HLH 68953 b
553	553
554	554
555	555	HB5577- 15 -LRB103 38816 HLH 68953 b HB5577 - 15 - LRB103 38816 HLH 68953 b
556	556	HB5577 - 15 - LRB103 38816 HLH 68953 b
557	557	1 collects any such amount from the lessee, the lessee shall
558	558	2 have a legal right to claim a refund of that amount from the
559	559	3 lessor. If, however, that amount is not refunded to the lessee
560	560	4 for any reason, the lessor is liable to pay that amount to the
561	561	5 Department. This paragraph is exempt from the provisions of
562	562	6 Section 3-90.
563	563	7 (32) Beginning on August 2, 2001 (the effective date of
564	564	8 Public Act 92-227), personal property purchased by a lessor
565	565	9 who leases the property, under a lease of one year or longer
566	566	10 executed or in effect at the time the lessor would otherwise be
567	567	11 subject to the tax imposed by this Act, to a governmental body
568	568	12 that has been issued an active sales tax exemption
569	569	13 identification number by the Department under Section 1g of
570	570	14 the Retailers' Occupation Tax Act. If the property is leased
571	571	15 in a manner that does not qualify for this exemption or used in
572	572	16 any other nonexempt manner, the lessor shall be liable for the
573	573	17 tax imposed under this Act or the Service Use Tax Act, as the
574	574	18 case may be, based on the fair market value of the property at
575	575	19 the time the nonqualifying use occurs. No lessor shall collect
576	576	20 or attempt to collect an amount (however designated) that
577	577	21 purports to reimburse that lessor for the tax imposed by this
578	578	22 Act or the Service Use Tax Act, as the case may be, if the tax
579	579	23 has not been paid by the lessor. If a lessor improperly
580	580	24 collects any such amount from the lessee, the lessee shall
581	581	25 have a legal right to claim a refund of that amount from the
582	582	26 lessor. If, however, that amount is not refunded to the lessee
583	583
584	584
585	585
586	586
587	587
588	588	HB5577 - 15 - LRB103 38816 HLH 68953 b
589	589
590	590
591	591	HB5577- 16 -LRB103 38816 HLH 68953 b HB5577 - 16 - LRB103 38816 HLH 68953 b
592	592	HB5577 - 16 - LRB103 38816 HLH 68953 b
593	593	1 for any reason, the lessor is liable to pay that amount to the
594	594	2 Department. This paragraph is exempt from the provisions of
595	595	3 Section 3-90.
596	596	4 (33) On and after July 1, 2003 and through June 30, 2004,
597	597	5 the use in this State of motor vehicles of the second division
598	598	6 with a gross vehicle weight in excess of 8,000 pounds and that
599	599	7 are subject to the commercial distribution fee imposed under
600	600	8 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
601	601	9 July 1, 2004 and through June 30, 2005, the use in this State
602	602	10 of motor vehicles of the second division: (i) with a gross
603	603	11 vehicle weight rating in excess of 8,000 pounds; (ii) that are
604	604	12 subject to the commercial distribution fee imposed under
605	605	13 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
606	606	14 are primarily used for commercial purposes. Through June 30,
607	607	15 2005, this exemption applies to repair and replacement parts
608	608	16 added after the initial purchase of such a motor vehicle if
609	609	17 that motor vehicle is used in a manner that would qualify for
610	610	18 the rolling stock exemption otherwise provided for in this
611	611	19 Act. For purposes of this paragraph, the term "used for
612	612	20 commercial purposes" means the transportation of persons or
613	613	21 property in furtherance of any commercial or industrial
614	614	22 enterprise, whether for-hire or not.
615	615	23 (34) Beginning January 1, 2008, tangible personal property
616	616	24 used in the construction or maintenance of a community water
617	617	25 supply, as defined under Section 3.145 of the Environmental
618	618	26 Protection Act, that is operated by a not-for-profit
619	619
620	620
621	621
622	622
623	623
624	624	HB5577 - 16 - LRB103 38816 HLH 68953 b
625	625
626	626
627	627	HB5577- 17 -LRB103 38816 HLH 68953 b HB5577 - 17 - LRB103 38816 HLH 68953 b
628	628	HB5577 - 17 - LRB103 38816 HLH 68953 b
629	629	1 corporation that holds a valid water supply permit issued
630	630	2 under Title IV of the Environmental Protection Act. This
631	631	3 paragraph is exempt from the provisions of Section 3-90.
632	632	4 (35) Beginning January 1, 2010 and continuing through
633	633	5 December 31, 2029, materials, parts, equipment, components,
634	634	6 and furnishings incorporated into or upon an aircraft as part
635	635	7 of the modification, refurbishment, completion, replacement,
636	636	8 repair, or maintenance of the aircraft. This exemption
637	637	9 includes consumable supplies used in the modification,
638	638	10 refurbishment, completion, replacement, repair, and
639	639	11 maintenance of aircraft. However, until January 1, 2024, this
640	640	12 exemption excludes any materials, parts, equipment,
641	641	13 components, and consumable supplies used in the modification,
642	642	14 replacement, repair, and maintenance of aircraft engines or
643	643	15 power plants, whether such engines or power plants are
644	644	16 installed or uninstalled upon any such aircraft. "Consumable
645	645	17 supplies" include, but are not limited to, adhesive, tape,
646	646	18 sandpaper, general purpose lubricants, cleaning solution,
647	647	19 latex gloves, and protective films.
648	648	20 Beginning January 1, 2010 and continuing through December
649	649	21 31, 2023, this exemption applies only to the use of qualifying
650	650	22 tangible personal property by persons who modify, refurbish,
651	651	23 complete, repair, replace, or maintain aircraft and who (i)
652	652	24 hold an Air Agency Certificate and are empowered to operate an
653	653	25 approved repair station by the Federal Aviation
654	654	26 Administration, (ii) have a Class IV Rating, and (iii) conduct
655	655
656	656
657	657
658	658
659	659
660	660	HB5577 - 17 - LRB103 38816 HLH 68953 b
661	661
662	662
663	663	HB5577- 18 -LRB103 38816 HLH 68953 b HB5577 - 18 - LRB103 38816 HLH 68953 b
664	664	HB5577 - 18 - LRB103 38816 HLH 68953 b
665	665	1 operations in accordance with Part 145 of the Federal Aviation
666	666	2 Regulations. From January 1, 2024 through December 31, 2029,
667	667	3 this exemption applies only to the use of qualifying tangible
668	668	4 personal property by: (A) persons who modify, refurbish,
669	669	5 complete, repair, replace, or maintain aircraft and who (i)
670	670	6 hold an Air Agency Certificate and are empowered to operate an
671	671	7 approved repair station by the Federal Aviation
672	672	8 Administration, (ii) have a Class IV Rating, and (iii) conduct
673	673	9 operations in accordance with Part 145 of the Federal Aviation
674	674	10 Regulations; and (B) persons who engage in the modification,
675	675	11 replacement, repair, and maintenance of aircraft engines or
676	676	12 power plants without regard to whether or not those persons
677	677	13 meet the qualifications of item (A).
678	678	14 The exemption does not include aircraft operated by a
679	679	15 commercial air carrier providing scheduled passenger air
680	680	16 service pursuant to authority issued under Part 121 or Part
681	681	17 129 of the Federal Aviation Regulations. The changes made to
682	682	18 this paragraph (35) by Public Act 98-534 are declarative of
683	683	19 existing law. It is the intent of the General Assembly that the
684	684	20 exemption under this paragraph (35) applies continuously from
685	685	21 January 1, 2010 through December 31, 2024; however, no claim
686	686	22 for credit or refund is allowed for taxes paid as a result of
687	687	23 the disallowance of this exemption on or after January 1, 2015
688	688	24 and prior to February 5, 2020 (the effective date of Public Act
689	689	25 101-629).
690	690	26 (36) Tangible personal property purchased by a
691	691
692	692
693	693
694	694
695	695
696	696	HB5577 - 18 - LRB103 38816 HLH 68953 b
697	697
698	698
699	699	HB5577- 19 -LRB103 38816 HLH 68953 b HB5577 - 19 - LRB103 38816 HLH 68953 b
700	700	HB5577 - 19 - LRB103 38816 HLH 68953 b
701	701	1 public-facilities corporation, as described in Section
702	702	2 11-65-10 of the Illinois Municipal Code, for purposes of
703	703	3 constructing or furnishing a municipal convention hall, but
704	704	4 only if the legal title to the municipal convention hall is
705	705	5 transferred to the municipality without any further
706	706	6 consideration by or on behalf of the municipality at the time
707	707	7 of the completion of the municipal convention hall or upon the
708	708	8 retirement or redemption of any bonds or other debt
709	709	9 instruments issued by the public-facilities corporation in
710	710	10 connection with the development of the municipal convention
711	711	11 hall. This exemption includes existing public-facilities
712	712	12 corporations as provided in Section 11-65-25 of the Illinois
713	713	13 Municipal Code. This paragraph is exempt from the provisions
714	714	14 of Section 3-90.
715	715	15 (37) Beginning January 1, 2017 and through December 31,
716	716	16 2026, menstrual pads, tampons, and menstrual cups.
717	717	17 (38) Merchandise that is subject to the Rental Purchase
718	718	18 Agreement Occupation and Use Tax. The purchaser must certify
719	719	19 that the item is purchased to be rented subject to a
720	720	20 rental-purchase rental purchase agreement, as defined in the
721	721	21 Rental-Purchase Rental Purchase Agreement Act, and provide
722	722	22 proof of registration under the Rental Purchase Agreement
723	723	23 Occupation and Use Tax Act. This paragraph is exempt from the
724	724	24 provisions of Section 3-90.
725	725	25 (39) Tangible personal property purchased by a purchaser
726	726	26 who is exempt from the tax imposed by this Act by operation of
727	727
728	728
729	729
730	730
731	731
732	732	HB5577 - 19 - LRB103 38816 HLH 68953 b
733	733
734	734
735	735	HB5577- 20 -LRB103 38816 HLH 68953 b HB5577 - 20 - LRB103 38816 HLH 68953 b
736	736	HB5577 - 20 - LRB103 38816 HLH 68953 b
737	737	1 federal law. This paragraph is exempt from the provisions of
738	738	2 Section 3-90.
739	739	3 (40) Qualified tangible personal property used in the
740	740	4 construction or operation of a data center that has been
741	741	5 granted a certificate of exemption by the Department of
742	742	6 Commerce and Economic Opportunity, whether that tangible
743	743	7 personal property is purchased by the owner, operator, or
744	744	8 tenant of the data center or by a contractor or subcontractor
745	745	9 of the owner, operator, or tenant. Data centers that would
746	746	10 have qualified for a certificate of exemption prior to January
747	747	11 1, 2020 had Public Act 101-31 been in effect may apply for and
748	748	12 obtain an exemption for subsequent purchases of computer
749	749	13 equipment or enabling software purchased or leased to upgrade,
750	750	14 supplement, or replace computer equipment or enabling software
751	751	15 purchased or leased in the original investment that would have
752	752	16 qualified.
753	753	17 The Department of Commerce and Economic Opportunity shall
754	754	18 grant a certificate of exemption under this item (40) to
755	755	19 qualified data centers as defined by Section 605-1025 of the
756	756	20 Department of Commerce and Economic Opportunity Law of the
757	757	21 Civil Administrative Code of Illinois.
758	758	22 For the purposes of this item (40):
759	759	23 "Data center" means a building or a series of
760	760	24 buildings rehabilitated or constructed to house working
761	761	25 servers in one physical location or multiple sites within
762	762	26 the State of Illinois.
763	763
764	764
765	765
766	766
767	767
768	768	HB5577 - 20 - LRB103 38816 HLH 68953 b
769	769
770	770
771	771	HB5577- 21 -LRB103 38816 HLH 68953 b HB5577 - 21 - LRB103 38816 HLH 68953 b
772	772	HB5577 - 21 - LRB103 38816 HLH 68953 b
773	773	1 "Qualified tangible personal property" means:
774	774	2 electrical systems and equipment; climate control and
775	775	3 chilling equipment and systems; mechanical systems and
776	776	4 equipment; monitoring and secure systems; emergency
777	777	5 generators; hardware; computers; servers; data storage
778	778	6 devices; network connectivity equipment; racks; cabinets;
779	779	7 telecommunications cabling infrastructure; raised floor
780	780	8 systems; peripheral components or systems; software;
781	781	9 mechanical, electrical, or plumbing systems; battery
782	782	10 systems; cooling systems and towers; temperature control
783	783	11 systems; other cabling; and other data center
784	784	12 infrastructure equipment and systems necessary to operate
785	785	13 qualified tangible personal property, including fixtures;
786	786	14 and component parts of any of the foregoing, including
787	787	15 installation, maintenance, repair, refurbishment, and
788	788	16 replacement of qualified tangible personal property to
789	789	17 generate, transform, transmit, distribute, or manage
790	790	18 electricity necessary to operate qualified tangible
791	791	19 personal property; and all other tangible personal
792	792	20 property that is essential to the operations of a computer
793	793	21 data center. The term "qualified tangible personal
794	794	22 property" also includes building materials physically
795	795	23 incorporated into in to the qualifying data center. To
796	796	24 document the exemption allowed under this Section, the
797	797	25 retailer must obtain from the purchaser a copy of the
798	798	26 certificate of eligibility issued by the Department of
799	799
800	800
801	801
802	802
803	803
804	804	HB5577 - 21 - LRB103 38816 HLH 68953 b
805	805
806	806
807	807	HB5577- 22 -LRB103 38816 HLH 68953 b HB5577 - 22 - LRB103 38816 HLH 68953 b
808	808	HB5577 - 22 - LRB103 38816 HLH 68953 b
809	809	1 Commerce and Economic Opportunity.
810	810	2 This item (40) is exempt from the provisions of Section
811	811	3 3-90.
812	812	4 (41) Beginning July 1, 2022, breast pumps, breast pump
813	813	5 collection and storage supplies, and breast pump kits. This
814	814	6 item (41) is exempt from the provisions of Section 3-90. As
815	815	7 used in this item (41):
816	816	8 "Breast pump" means an electrically controlled or
817	817	9 manually controlled pump device designed or marketed to be
818	818	10 used to express milk from a human breast during lactation,
819	819	11 including the pump device and any battery, AC adapter, or
820	820	12 other power supply unit that is used to power the pump
821	821	13 device and is packaged and sold with the pump device at the
822	822	14 time of sale.
823	823	15 "Breast pump collection and storage supplies" means
824	824	16 items of tangible personal property designed or marketed
825	825	17 to be used in conjunction with a breast pump to collect
826	826	18 milk expressed from a human breast and to store collected
827	827	19 milk until it is ready for consumption.
828	828	20 "Breast pump collection and storage supplies"
829	829	21 includes, but is not limited to: breast shields and breast
830	830	22 shield connectors; breast pump tubes and tubing adapters;
831	831	23 breast pump valves and membranes; backflow protectors and
832	832	24 backflow protector adaptors; bottles and bottle caps
833	833	25 specific to the operation of the breast pump; and breast
834	834	26 milk storage bags.
835	835
836	836
837	837
838	838
839	839
840	840	HB5577 - 22 - LRB103 38816 HLH 68953 b
841	841
842	842
843	843	HB5577- 23 -LRB103 38816 HLH 68953 b HB5577 - 23 - LRB103 38816 HLH 68953 b
844	844	HB5577 - 23 - LRB103 38816 HLH 68953 b
845	845	1 "Breast pump collection and storage supplies" does not
846	846	2 include: (1) bottles and bottle caps not specific to the
847	847	3 operation of the breast pump; (2) breast pump travel bags
848	848	4 and other similar carrying accessories, including ice
849	849	5 packs, labels, and other similar products; (3) breast pump
850	850	6 cleaning supplies; (4) nursing bras, bra pads, breast
851	851	7 shells, and other similar products; and (5) creams,
852	852	8 ointments, and other similar products that relieve
853	853	9 breastfeeding-related symptoms or conditions of the
854	854	10 breasts or nipples, unless sold as part of a breast pump
855	855	11 kit that is pre-packaged by the breast pump manufacturer
856	856	12 or distributor.
857	857	13 "Breast pump kit" means a kit that: (1) contains no
858	858	14 more than a breast pump, breast pump collection and
859	859	15 storage supplies, a rechargeable battery for operating the
860	860	16 breast pump, a breastmilk cooler, bottle stands, ice
861	861	17 packs, and a breast pump carrying case; and (2) is
862	862	18 pre-packaged as a breast pump kit by the breast pump
863	863	19 manufacturer or distributor.
864	864	20 (42) Tangible personal property sold by or on behalf of
865	865	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
866	866	22 Property Act. This item (42) is exempt from the provisions of
867	867	23 Section 3-90.
868	868	24 (43) Beginning on January 1, 2024, tangible personal
869	869	25 property purchased by an active duty member of the armed
870	870	26 forces of the United States who presents valid military
871	871
872	872
873	873
874	874
875	875
876	876	HB5577 - 23 - LRB103 38816 HLH 68953 b
877	877
878	878
879	879	HB5577- 24 -LRB103 38816 HLH 68953 b HB5577 - 24 - LRB103 38816 HLH 68953 b
880	880	HB5577 - 24 - LRB103 38816 HLH 68953 b
881	881	1 identification and purchases the property using a form of
882	882	2 payment where the federal government is the payor. The member
883	883	3 of the armed forces must complete, at the point of sale, a form
884	884	4 prescribed by the Department of Revenue documenting that the
885	885	5 transaction is eligible for the exemption under this
886	886	6 paragraph. Retailers must keep the form as documentation of
887	887	7 the exemption in their records for a period of not less than 6
888	888	8 years. "Armed forces of the United States" means the United
889	889	9 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
890	890	10 This paragraph is exempt from the provisions of Section 3-90.
891	891	11 (44) Beginning on January 1, 2025, medical appliances and
892	892	12 products that are classified as Class III medical devices by
893	893	13 the United States Food and Drug Administration and that are
894	894	14 used for cancer treatment pursuant to a prescription, as well
895	895	15 as any accessories and components related to those appliances
896	896	16 and devices. As used in this paragraph, "medical appliance"
897	897	17 means a product that was classified as a medical appliance and
898	898	18 was subject to a 1% rate of tax immediately prior to the
899	899	19 effective date of this amendatory Act of the 103rd General
900	900	20 Assembly, including, but not limited to, devices used to treat
901	901	21 amyotrophic lateral sclerosis, as well as other items as
902	902	22 determined by the Department by rule. This paragraph is exempt
903	903	23 from the provisions of Section 3-90.
904	904	24 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
905	905	25 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
906	906	26 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
907	907
908	908
909	909
910	910
911	911
912	912	HB5577 - 24 - LRB103 38816 HLH 68953 b
913	913
914	914
915	915	HB5577- 25 -LRB103 38816 HLH 68953 b HB5577 - 25 - LRB103 38816 HLH 68953 b
916	916	HB5577 - 25 - LRB103 38816 HLH 68953 b
917	917	1 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
918	918	2 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
919	919	3 revised 12-12-23.)
920	920	4 (35 ILCS 105/3-10)
921	921	5 Sec. 3-10. Rate of tax. Unless otherwise provided in this
922	922	6 Section, the tax imposed by this Act is at the rate of 6.25% of
923	923	7 either the selling price or the fair market value, if any, of
924	924	8 the tangible personal property. In all cases where property
925	925	9 functionally used or consumed is the same as the property that
926	926	10 was purchased at retail, then the tax is imposed on the selling
927	927	11 price of the property. In all cases where property
928	928	12 functionally used or consumed is a by-product or waste product
929	929	13 that has been refined, manufactured, or produced from property
930	930	14 purchased at retail, then the tax is imposed on the lower of
931	931	15 the fair market value, if any, of the specific property so used
932	932	16 in this State or on the selling price of the property purchased
933	933	17 at retail. For purposes of this Section "fair market value"
934	934	18 means the price at which property would change hands between a
935	935	19 willing buyer and a willing seller, neither being under any
936	936	20 compulsion to buy or sell and both having reasonable knowledge
937	937	21 of the relevant facts. The fair market value shall be
938	938	22 established by Illinois sales by the taxpayer of the same
939	939	23 property as that functionally used or consumed, or if there
940	940	24 are no such sales by the taxpayer, then comparable sales or
941	941	25 purchases of property of like kind and character in Illinois.
942	942
943	943
944	944
945	945
946	946
947	947	HB5577 - 25 - LRB103 38816 HLH 68953 b
948	948
949	949
950	950	HB5577- 26 -LRB103 38816 HLH 68953 b HB5577 - 26 - LRB103 38816 HLH 68953 b
951	951	HB5577 - 26 - LRB103 38816 HLH 68953 b
952	952	1 Beginning on July 1, 2000 and through December 31, 2000,
953	953	2 with respect to motor fuel, as defined in Section 1.1 of the
954	954	3 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
955	955	4 the Use Tax Act, the tax is imposed at the rate of 1.25%.
956	956	5 Beginning on August 6, 2010 through August 15, 2010, and
957	957	6 beginning again on August 5, 2022 through August 14, 2022,
958	958	7 with respect to sales tax holiday items as defined in Section
959	959	8 3-6 of this Act, the tax is imposed at the rate of 1.25%.
960	960	9 With respect to gasohol, the tax imposed by this Act
961	961	10 applies to (i) 70% of the proceeds of sales made on or after
962	962	11 January 1, 1990, and before July 1, 2003, (ii) 80% of the
963	963	12 proceeds of sales made on or after July 1, 2003 and on or
964	964	13 before July 1, 2017, (iii) 100% of the proceeds of sales made
965	965	14 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
966	966	15 the proceeds of sales made on or after January 1, 2024 and on
967	967	16 or before December 31, 2028, and (v) 100% of the proceeds of
968	968	17 sales made after December 31, 2028. If, at any time, however,
969	969	18 the tax under this Act on sales of gasohol is imposed at the
970	970	19 rate of 1.25%, then the tax imposed by this Act applies to 100%
971	971	20 of the proceeds of sales of gasohol made during that time.
972	972	21 With respect to mid-range ethanol blends, the tax imposed
973	973	22 by this Act applies to (i) 80% of the proceeds of sales made on
974	974	23 or after January 1, 2024 and on or before December 31, 2028 and
975	975	24 (ii) 100% of the proceeds of sales made thereafter. If, at any
976	976	25 time, however, the tax under this Act on sales of mid-range
977	977	26 ethanol blends is imposed at the rate of 1.25%, then the tax
978	978
979	979
980	980
981	981
982	982
983	983	HB5577 - 26 - LRB103 38816 HLH 68953 b
984	984
985	985
986	986	HB5577- 27 -LRB103 38816 HLH 68953 b HB5577 - 27 - LRB103 38816 HLH 68953 b
987	987	HB5577 - 27 - LRB103 38816 HLH 68953 b
988	988	1 imposed by this Act applies to 100% of the proceeds of sales of
989	989	2 mid-range ethanol blends made during that time.
990	990	3 With respect to majority blended ethanol fuel, the tax
991	991	4 imposed by this Act does not apply to the proceeds of sales
992	992	5 made on or after July 1, 2003 and on or before December 31,
993	993	6 2028 but applies to 100% of the proceeds of sales made
994	994	7 thereafter.
995	995	8 With respect to biodiesel blends with no less than 1% and
996	996	9 no more than 10% biodiesel, the tax imposed by this Act applies
997	997	10 to (i) 80% of the proceeds of sales made on or after July 1,
998	998	11 2003 and on or before December 31, 2018 and (ii) 100% of the
999	999	12 proceeds of sales made after December 31, 2018 and before
1000	1000	13 January 1, 2024. On and after January 1, 2024 and on or before
1001	1001	14 December 31, 2030, the taxation of biodiesel, renewable
1002	1002	15 diesel, and biodiesel blends shall be as provided in Section
1003	1003	16 3-5.1. If, at any time, however, the tax under this Act on
1004	1004	17 sales of biodiesel blends with no less than 1% and no more than
1005	1005	18 10% biodiesel is imposed at the rate of 1.25%, then the tax
1006	1006	19 imposed by this Act applies to 100% of the proceeds of sales of
1007	1007	20 biodiesel blends with no less than 1% and no more than 10%
1008	1008	21 biodiesel made during that time.
1009	1009	22 With respect to biodiesel and biodiesel blends with more
1010	1010	23 than 10% but no more than 99% biodiesel, the tax imposed by
1011	1011	24 this Act does not apply to the proceeds of sales made on or
1012	1012	25 after July 1, 2003 and on or before December 31, 2023. On and
1013	1013	26 after January 1, 2024 and on or before December 31, 2030, the
1014	1014
1015	1015
1016	1016
1017	1017
1018	1018
1019	1019	HB5577 - 27 - LRB103 38816 HLH 68953 b
1020	1020
1021	1021
1022	1022	HB5577- 28 -LRB103 38816 HLH 68953 b HB5577 - 28 - LRB103 38816 HLH 68953 b
1023	1023	HB5577 - 28 - LRB103 38816 HLH 68953 b
1024	1024	1 taxation of biodiesel, renewable diesel, and biodiesel blends
1025	1025	2 shall be as provided in Section 3-5.1.
1026	1026	3 Until July 1, 2022 and beginning again on July 1, 2023,
1027	1027	4 with respect to food for human consumption that is to be
1028	1028	5 consumed off the premises where it is sold (other than
1029	1029	6 alcoholic beverages, food consisting of or infused with adult
1030	1030	7 use cannabis, soft drinks, and food that has been prepared for
1031	1031	8 immediate consumption), the tax is imposed at the rate of 1%.
1032	1032	9 Beginning on July 1, 2022 and until July 1, 2023, with respect
1033	1033	10 to food for human consumption that is to be consumed off the
1034	1034	11 premises where it is sold (other than alcoholic beverages,
1035	1035	12 food consisting of or infused with adult use cannabis, soft
1036	1036	13 drinks, and food that has been prepared for immediate
1037	1037	14 consumption), the tax is imposed at the rate of 0%.
1038	1038	15 With respect to prescription and nonprescription
1039	1039	16 medicines, drugs, medical appliances, products classified as
1040	1040	17 Class III medical devices by the United States Food and Drug
1041	1041	18 Administration that are used for cancer treatment pursuant to
1042	1042	19 a prescription, as well as any accessories and components
1043	1043	20 related to those devices, modifications to a motor vehicle for
1044	1044	21 the purpose of rendering it usable by a person with a
1045	1045	22 disability, and insulin, blood sugar testing materials,
1046	1046	23 syringes, and needles used by human diabetics (except to the
1047	1047	24 extent that those items are exempt by the Department under
1048	1048	25 paragraph (44) of Section 3-5), the tax is imposed at the rate
1049	1049	26 of 1%. For the purposes of this Section, until September 1,
1050	1050
1051	1051
1052	1052
1053	1053
1054	1054
1055	1055	HB5577 - 28 - LRB103 38816 HLH 68953 b
1056	1056
1057	1057
1058	1058	HB5577- 29 -LRB103 38816 HLH 68953 b HB5577 - 29 - LRB103 38816 HLH 68953 b
1059	1059	HB5577 - 29 - LRB103 38816 HLH 68953 b
1060	1060	1 2009: the term "soft drinks" means any complete, finished,
1061	1061	2 ready-to-use, non-alcoholic drink, whether carbonated or not,
1062	1062	3 including, but not limited to, soda water, cola, fruit juice,
1063	1063	4 vegetable juice, carbonated water, and all other preparations
1064	1064	5 commonly known as soft drinks of whatever kind or description
1065	1065	6 that are contained in any closed or sealed bottle, can,
1066	1066	7 carton, or container, regardless of size; but "soft drinks"
1067	1067	8 does not include coffee, tea, non-carbonated water, infant
1068	1068	9 formula, milk or milk products as defined in the Grade A
1069	1069	10 Pasteurized Milk and Milk Products Act, or drinks containing
1070	1070	11 50% or more natural fruit or vegetable juice.
1071	1071	12 Notwithstanding any other provisions of this Act,
1072	1072	13 beginning September 1, 2009, "soft drinks" means non-alcoholic
1073	1073	14 beverages that contain natural or artificial sweeteners. "Soft
1074	1074	15 drinks" does not include beverages that contain milk or milk
1075	1075	16 products, soy, rice or similar milk substitutes, or greater
1076	1076	17 than 50% of vegetable or fruit juice by volume.
1077	1077	18 Until August 1, 2009, and notwithstanding any other
1078	1078	19 provisions of this Act, "food for human consumption that is to
1079	1079	20 be consumed off the premises where it is sold" includes all
1080	1080	21 food sold through a vending machine, except soft drinks and
1081	1081	22 food products that are dispensed hot from a vending machine,
1082	1082	23 regardless of the location of the vending machine. Beginning
1083	1083	24 August 1, 2009, and notwithstanding any other provisions of
1084	1084	25 this Act, "food for human consumption that is to be consumed
1085	1085	26 off the premises where it is sold" includes all food sold
1086	1086
1087	1087
1088	1088
1089	1089
1090	1090
1091	1091	HB5577 - 29 - LRB103 38816 HLH 68953 b
1092	1092
1093	1093
1094	1094	HB5577- 30 -LRB103 38816 HLH 68953 b HB5577 - 30 - LRB103 38816 HLH 68953 b
1095	1095	HB5577 - 30 - LRB103 38816 HLH 68953 b
1096	1096	1 through a vending machine, except soft drinks, candy, and food
1097	1097	2 products that are dispensed hot from a vending machine,
1098	1098	3 regardless of the location of the vending machine.
1099	1099	4 Notwithstanding any other provisions of this Act,
1100	1100	5 beginning September 1, 2009, "food for human consumption that
1101	1101	6 is to be consumed off the premises where it is sold" does not
1102	1102	7 include candy. For purposes of this Section, "candy" means a
1103	1103	8 preparation of sugar, honey, or other natural or artificial
1104	1104	9 sweeteners in combination with chocolate, fruits, nuts or
1105	1105	10 other ingredients or flavorings in the form of bars, drops, or
1106	1106	11 pieces. "Candy" does not include any preparation that contains
1107	1107	12 flour or requires refrigeration.
1108	1108	13 Notwithstanding any other provisions of this Act,
1109	1109	14 beginning September 1, 2009, "nonprescription medicines and
1110	1110	15 drugs" does not include grooming and hygiene products. For
1111	1111	16 purposes of this Section, "grooming and hygiene products"
1112	1112	17 includes, but is not limited to, soaps and cleaning solutions,
1113	1113	18 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1114	1114	19 lotions and screens, unless those products are available by
1115	1115	20 prescription only, regardless of whether the products meet the
1116	1116	21 definition of "over-the-counter-drugs". For the purposes of
1117	1117	22 this paragraph, "over-the-counter-drug" means a drug for human
1118	1118	23 use that contains a label that identifies the product as a drug
1119	1119	24 as required by 21 CFR 201.66. The "over-the-counter-drug"
1120	1120	25 label includes:
1121	1121	26 (A) a "Drug Facts" panel; or
1122	1122
1123	1123
1124	1124
1125	1125
1126	1126
1127	1127	HB5577 - 30 - LRB103 38816 HLH 68953 b
1128	1128
1129	1129
1130	1130	HB5577- 31 -LRB103 38816 HLH 68953 b HB5577 - 31 - LRB103 38816 HLH 68953 b
1131	1131	HB5577 - 31 - LRB103 38816 HLH 68953 b
1132	1132	1 (B) a statement of the "active ingredient(s)" with a
1133	1133	2 list of those ingredients contained in the compound,
1134	1134	3 substance or preparation.
1135	1135	4 Beginning on January 1, 2014 (the effective date of Public
1136	1136	5 Act 98-122), "prescription and nonprescription medicines and
1137	1137	6 drugs" includes medical cannabis purchased from a registered
1138	1138	7 dispensing organization under the Compassionate Use of Medical
1139	1139	8 Cannabis Program Act.
1140	1140	9 As used in this Section, "adult use cannabis" means
1141	1141	10 cannabis subject to tax under the Cannabis Cultivation
1142	1142	11 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1143	1143	12 and does not include cannabis subject to tax under the
1144	1144	13 Compassionate Use of Medical Cannabis Program Act.
1145	1145	14 If the property that is purchased at retail from a
1146	1146	15 retailer is acquired outside Illinois and used outside
1147	1147	16 Illinois before being brought to Illinois for use here and is
1148	1148	17 taxable under this Act, the "selling price" on which the tax is
1149	1149	18 computed shall be reduced by an amount that represents a
1150	1150	19 reasonable allowance for depreciation for the period of prior
1151	1151	20 out-of-state use.
1152	1152	21 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
1153	1153	22 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
1154	1154	23 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
1155	1155	24 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
1156	1156	25 Section 10. The Service Use Tax Act is amended by changing
1157	1157
1158	1158
1159	1159
1160	1160
1161	1161
1162	1162	HB5577 - 31 - LRB103 38816 HLH 68953 b
1163	1163
1164	1164
1165	1165	HB5577- 32 -LRB103 38816 HLH 68953 b HB5577 - 32 - LRB103 38816 HLH 68953 b
1166	1166	HB5577 - 32 - LRB103 38816 HLH 68953 b
1167	1167	1 Sections 3-5 and 3-10 as follows:
1168	1168	2 (35 ILCS 110/3-5)
1169	1169	3 Sec. 3-5. Exemptions. Use of the following tangible
1170	1170	4 personal property is exempt from the tax imposed by this Act:
1171	1171	5 (1) Personal property purchased from a corporation,
1172	1172	6 society, association, foundation, institution, or
1173	1173	7 organization, other than a limited liability company, that is
1174	1174	8 organized and operated as a not-for-profit service enterprise
1175	1175	9 for the benefit of persons 65 years of age or older if the
1176	1176	10 personal property was not purchased by the enterprise for the
1177	1177	11 purpose of resale by the enterprise.
1178	1178	12 (2) Personal property purchased by a non-profit Illinois
1179	1179	13 county fair association for use in conducting, operating, or
1180	1180	14 promoting the county fair.
1181	1181	15 (3) Personal property purchased by a not-for-profit arts
1182	1182	16 or cultural organization that establishes, by proof required
1183	1183	17 by the Department by rule, that it has received an exemption
1184	1184	18 under Section 501(c)(3) of the Internal Revenue Code and that
1185	1185	19 is organized and operated primarily for the presentation or
1186	1186	20 support of arts or cultural programming, activities, or
1187	1187	21 services. These organizations include, but are not limited to,
1188	1188	22 music and dramatic arts organizations such as symphony
1189	1189	23 orchestras and theatrical groups, arts and cultural service
1190	1190	24 organizations, local arts councils, visual arts organizations,
1191	1191	25 and media arts organizations. On and after July 1, 2001 (the
1192	1192
1193	1193
1194	1194
1195	1195
1196	1196
1197	1197	HB5577 - 32 - LRB103 38816 HLH 68953 b
1198	1198
1199	1199
1200	1200	HB5577- 33 -LRB103 38816 HLH 68953 b HB5577 - 33 - LRB103 38816 HLH 68953 b
1201	1201	HB5577 - 33 - LRB103 38816 HLH 68953 b
1202	1202	1 effective date of Public Act 92-35), however, an entity
1203	1203	2 otherwise eligible for this exemption shall not make tax-free
1204	1204	3 purchases unless it has an active identification number issued
1205	1205	4 by the Department.
1206	1206	5 (4) Legal tender, currency, medallions, or gold or silver
1207	1207	6 coinage issued by the State of Illinois, the government of the
1208	1208	7 United States of America, or the government of any foreign
1209	1209	8 country, and bullion.
1210	1210	9 (5) Until July 1, 2003 and beginning again on September 1,
1211	1211	10 2004 through August 30, 2014, graphic arts machinery and
1212	1212	11 equipment, including repair and replacement parts, both new
1213	1213	12 and used, and including that manufactured on special order or
1214	1214	13 purchased for lease, certified by the purchaser to be used
1215	1215	14 primarily for graphic arts production. Equipment includes
1216	1216	15 chemicals or chemicals acting as catalysts but only if the
1217	1217	16 chemicals or chemicals acting as catalysts effect a direct and
1218	1218	17 immediate change upon a graphic arts product. Beginning on
1219	1219	18 July 1, 2017, graphic arts machinery and equipment is included
1220	1220	19 in the manufacturing and assembling machinery and equipment
1221	1221	20 exemption under Section 2 of this Act.
1222	1222	21 (6) Personal property purchased from a teacher-sponsored
1223	1223	22 student organization affiliated with an elementary or
1224	1224	23 secondary school located in Illinois.
1225	1225	24 (7) Farm machinery and equipment, both new and used,
1226	1226	25 including that manufactured on special order, certified by the
1227	1227	26 purchaser to be used primarily for production agriculture or
1228	1228
1229	1229
1230	1230
1231	1231
1232	1232
1233	1233	HB5577 - 33 - LRB103 38816 HLH 68953 b
1234	1234
1235	1235
1236	1236	HB5577- 34 -LRB103 38816 HLH 68953 b HB5577 - 34 - LRB103 38816 HLH 68953 b
1237	1237	HB5577 - 34 - LRB103 38816 HLH 68953 b
1238	1238	1 State or federal agricultural programs, including individual
1239	1239	2 replacement parts for the machinery and equipment, including
1240	1240	3 machinery and equipment purchased for lease, and including
1241	1241	4 implements of husbandry defined in Section 1-130 of the
1242	1242	5 Illinois Vehicle Code, farm machinery and agricultural
1243	1243	6 chemical and fertilizer spreaders, and nurse wagons required
1244	1244	7 to be registered under Section 3-809 of the Illinois Vehicle
1245	1245	8 Code, but excluding other motor vehicles required to be
1246	1246	9 registered under the Illinois Vehicle Code. Horticultural
1247	1247	10 polyhouses or hoop houses used for propagating, growing, or
1248	1248	11 overwintering plants shall be considered farm machinery and
1249	1249	12 equipment under this item (7). Agricultural chemical tender
1250	1250	13 tanks and dry boxes shall include units sold separately from a
1251	1251	14 motor vehicle required to be licensed and units sold mounted
1252	1252	15 on a motor vehicle required to be licensed if the selling price
1253	1253	16 of the tender is separately stated.
1254	1254	17 Farm machinery and equipment shall include precision
1255	1255	18 farming equipment that is installed or purchased to be
1256	1256	19 installed on farm machinery and equipment, including, but not
1257	1257	20 limited to, tractors, harvesters, sprayers, planters, seeders,
1258	1258	21 or spreaders. Precision farming equipment includes, but is not
1259	1259	22 limited to, soil testing sensors, computers, monitors,
1260	1260	23 software, global positioning and mapping systems, and other
1261	1261	24 such equipment.
1262	1262	25 Farm machinery and equipment also includes computers,
1263	1263	26 sensors, software, and related equipment used primarily in the
1264	1264
1265	1265
1266	1266
1267	1267
1268	1268
1269	1269	HB5577 - 34 - LRB103 38816 HLH 68953 b
1270	1270
1271	1271
1272	1272	HB5577- 35 -LRB103 38816 HLH 68953 b HB5577 - 35 - LRB103 38816 HLH 68953 b
1273	1273	HB5577 - 35 - LRB103 38816 HLH 68953 b
1274	1274	1 computer-assisted operation of production agriculture
1275	1275	2 facilities, equipment, and activities such as, but not limited
1276	1276	3 to, the collection, monitoring, and correlation of animal and
1277	1277	4 crop data for the purpose of formulating animal diets and
1278	1278	5 agricultural chemicals.
1279	1279	6 Beginning on January 1, 2024, farm machinery and equipment
1280	1280	7 also includes electrical power generation equipment used
1281	1281	8 primarily for production agriculture.
1282	1282	9 This item (7) is exempt from the provisions of Section
1283	1283	10 3-75.
1284	1284	11 (8) Until June 30, 2013, fuel and petroleum products sold
1285	1285	12 to or used by an air common carrier, certified by the carrier
1286	1286	13 to be used for consumption, shipment, or storage in the
1287	1287	14 conduct of its business as an air common carrier, for a flight
1288	1288	15 destined for or returning from a location or locations outside
1289	1289	16 the United States without regard to previous or subsequent
1290	1290	17 domestic stopovers.
1291	1291	18 Beginning July 1, 2013, fuel and petroleum products sold
1292	1292	19 to or used by an air carrier, certified by the carrier to be
1293	1293	20 used for consumption, shipment, or storage in the conduct of
1294	1294	21 its business as an air common carrier, for a flight that (i) is
1295	1295	22 engaged in foreign trade or is engaged in trade between the
1296	1296	23 United States and any of its possessions and (ii) transports
1297	1297	24 at least one individual or package for hire from the city of
1298	1298	25 origination to the city of final destination on the same
1299	1299	26 aircraft, without regard to a change in the flight number of
1300	1300
1301	1301
1302	1302
1303	1303
1304	1304
1305	1305	HB5577 - 35 - LRB103 38816 HLH 68953 b
1306	1306
1307	1307
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1309	1309	HB5577 - 36 - LRB103 38816 HLH 68953 b
1310	1310	1 that aircraft.
1311	1311	2 (9) Proceeds of mandatory service charges separately
1312	1312	3 stated on customers' bills for the purchase and consumption of
1313	1313	4 food and beverages acquired as an incident to the purchase of a
1314	1314	5 service from a serviceman, to the extent that the proceeds of
1315	1315	6 the service charge are in fact turned over as tips or as a
1316	1316	7 substitute for tips to the employees who participate directly
1317	1317	8 in preparing, serving, hosting or cleaning up the food or
1318	1318	9 beverage function with respect to which the service charge is
1319	1319	10 imposed.
1320	1320	11 (10) Until July 1, 2003, oil field exploration, drilling,
1321	1321	12 and production equipment, including (i) rigs and parts of
1322	1322	13 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1323	1323	14 pipe and tubular goods, including casing and drill strings,
1324	1324	15 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1325	1325	16 lines, (v) any individual replacement part for oil field
1326	1326	17 exploration, drilling, and production equipment, and (vi)
1327	1327	18 machinery and equipment purchased for lease; but excluding
1328	1328	19 motor vehicles required to be registered under the Illinois
1329	1329	20 Vehicle Code.
1330	1330	21 (11) Proceeds from the sale of photoprocessing machinery
1331	1331	22 and equipment, including repair and replacement parts, both
1332	1332	23 new and used, including that manufactured on special order,
1333	1333	24 certified by the purchaser to be used primarily for
1334	1334	25 photoprocessing, and including photoprocessing machinery and
1335	1335	26 equipment purchased for lease.
1336	1336
1337	1337
1338	1338
1339	1339
1340	1340
1341	1341	HB5577 - 36 - LRB103 38816 HLH 68953 b
1342	1342
1343	1343
1344	1344	HB5577- 37 -LRB103 38816 HLH 68953 b HB5577 - 37 - LRB103 38816 HLH 68953 b
1345	1345	HB5577 - 37 - LRB103 38816 HLH 68953 b
1346	1346	1 (12) Until July 1, 2028, coal and aggregate exploration,
1347	1347	2 mining, off-highway hauling, processing, maintenance, and
1348	1348	3 reclamation equipment, including replacement parts and
1349	1349	4 equipment, and including equipment purchased for lease, but
1350	1350	5 excluding motor vehicles required to be registered under the
1351	1351	6 Illinois Vehicle Code. The changes made to this Section by
1352	1352	7 Public Act 97-767 apply on and after July 1, 2003, but no claim
1353	1353	8 for credit or refund is allowed on or after August 16, 2013
1354	1354	9 (the effective date of Public Act 98-456) for such taxes paid
1355	1355	10 during the period beginning July 1, 2003 and ending on August
1356	1356	11 16, 2013 (the effective date of Public Act 98-456).
1357	1357	12 (13) Semen used for artificial insemination of livestock
1358	1358	13 for direct agricultural production.
1359	1359	14 (14) Horses, or interests in horses, registered with and
1360	1360	15 meeting the requirements of any of the Arabian Horse Club
1361	1361	16 Registry of America, Appaloosa Horse Club, American Quarter
1362	1362	17 Horse Association, United States Trotting Association, or
1363	1363	18 Jockey Club, as appropriate, used for purposes of breeding or
1364	1364	19 racing for prizes. This item (14) is exempt from the
1365	1365	20 provisions of Section 3-75, and the exemption provided for
1366	1366	21 under this item (14) applies for all periods beginning May 30,
1367	1367	22 1995, but no claim for credit or refund is allowed on or after
1368	1368	23 January 1, 2008 (the effective date of Public Act 95-88) for
1369	1369	24 such taxes paid during the period beginning May 30, 2000 and
1370	1370	25 ending on January 1, 2008 (the effective date of Public Act
1371	1371	26 95-88).
1372	1372
1373	1373
1374	1374
1375	1375
1376	1376
1377	1377	HB5577 - 37 - LRB103 38816 HLH 68953 b
1378	1378
1379	1379
1380	1380	HB5577- 38 -LRB103 38816 HLH 68953 b HB5577 - 38 - LRB103 38816 HLH 68953 b
1381	1381	HB5577 - 38 - LRB103 38816 HLH 68953 b
1382	1382	1 (15) Computers and communications equipment utilized for
1383	1383	2 any hospital purpose and equipment used in the diagnosis,
1384	1384	3 analysis, or treatment of hospital patients purchased by a
1385	1385	4 lessor who leases the equipment, under a lease of one year or
1386	1386	5 longer executed or in effect at the time the lessor would
1387	1387	6 otherwise be subject to the tax imposed by this Act, to a
1388	1388	7 hospital that has been issued an active tax exemption
1389	1389	8 identification number by the Department under Section 1g of
1390	1390	9 the Retailers' Occupation Tax Act. If the equipment is leased
1391	1391	10 in a manner that does not qualify for this exemption or is used
1392	1392	11 in any other non-exempt manner, the lessor shall be liable for
1393	1393	12 the tax imposed under this Act or the Use Tax Act, as the case
1394	1394	13 may be, based on the fair market value of the property at the
1395	1395	14 time the non-qualifying use occurs. No lessor shall collect or
1396	1396	15 attempt to collect an amount (however designated) that
1397	1397	16 purports to reimburse that lessor for the tax imposed by this
1398	1398	17 Act or the Use Tax Act, as the case may be, if the tax has not
1399	1399	18 been paid by the lessor. If a lessor improperly collects any
1400	1400	19 such amount from the lessee, the lessee shall have a legal
1401	1401	20 right to claim a refund of that amount from the lessor. If,
1402	1402	21 however, that amount is not refunded to the lessee for any
1403	1403	22 reason, the lessor is liable to pay that amount to the
1404	1404	23 Department.
1405	1405	24 (16) Personal property purchased by a lessor who leases
1406	1406	25 the property, under a lease of one year or longer executed or
1407	1407	26 in effect at the time the lessor would otherwise be subject to
1408	1408
1409	1409
1410	1410
1411	1411
1412	1412
1413	1413	HB5577 - 38 - LRB103 38816 HLH 68953 b
1414	1414
1415	1415
1416	1416	HB5577- 39 -LRB103 38816 HLH 68953 b HB5577 - 39 - LRB103 38816 HLH 68953 b
1417	1417	HB5577 - 39 - LRB103 38816 HLH 68953 b
1418	1418	1 the tax imposed by this Act, to a governmental body that has
1419	1419	2 been issued an active tax exemption identification number by
1420	1420	3 the Department under Section 1g of the Retailers' Occupation
1421	1421	4 Tax Act. If the property is leased in a manner that does not
1422	1422	5 qualify for this exemption or is used in any other non-exempt
1423	1423	6 manner, the lessor shall be liable for the tax imposed under
1424	1424	7 this Act or the Use Tax Act, as the case may be, based on the
1425	1425	8 fair market value of the property at the time the
1426	1426	9 non-qualifying use occurs. No lessor shall collect or attempt
1427	1427	10 to collect an amount (however designated) that purports to
1428	1428	11 reimburse that lessor for the tax imposed by this Act or the
1429	1429	12 Use Tax Act, as the case may be, if the tax has not been paid
1430	1430	13 by the lessor. If a lessor improperly collects any such amount
1431	1431	14 from the lessee, the lessee shall have a legal right to claim a
1432	1432	15 refund of that amount from the lessor. If, however, that
1433	1433	16 amount is not refunded to the lessee for any reason, the lessor
1434	1434	17 is liable to pay that amount to the Department.
1435	1435	18 (17) Beginning with taxable years ending on or after
1436	1436	19 December 31, 1995 and ending with taxable years ending on or
1437	1437	20 before December 31, 2004, personal property that is donated
1438	1438	21 for disaster relief to be used in a State or federally declared
1439	1439	22 disaster area in Illinois or bordering Illinois by a
1440	1440	23 manufacturer or retailer that is registered in this State to a
1441	1441	24 corporation, society, association, foundation, or institution
1442	1442	25 that has been issued a sales tax exemption identification
1443	1443	26 number by the Department that assists victims of the disaster
1444	1444
1445	1445
1446	1446
1447	1447
1448	1448
1449	1449	HB5577 - 39 - LRB103 38816 HLH 68953 b
1450	1450
1451	1451
1452	1452	HB5577- 40 -LRB103 38816 HLH 68953 b HB5577 - 40 - LRB103 38816 HLH 68953 b
1453	1453	HB5577 - 40 - LRB103 38816 HLH 68953 b
1454	1454	1 who reside within the declared disaster area.
1455	1455	2 (18) Beginning with taxable years ending on or after
1456	1456	3 December 31, 1995 and ending with taxable years ending on or
1457	1457	4 before December 31, 2004, personal property that is used in
1458	1458	5 the performance of infrastructure repairs in this State,
1459	1459	6 including, but not limited to, municipal roads and streets,
1460	1460	7 access roads, bridges, sidewalks, waste disposal systems,
1461	1461	8 water and sewer line extensions, water distribution and
1462	1462	9 purification facilities, storm water drainage and retention
1463	1463	10 facilities, and sewage treatment facilities, resulting from a
1464	1464	11 State or federally declared disaster in Illinois or bordering
1465	1465	12 Illinois when such repairs are initiated on facilities located
1466	1466	13 in the declared disaster area within 6 months after the
1467	1467	14 disaster.
1468	1468	15 (19) Beginning July 1, 1999, game or game birds purchased
1469	1469	16 at a "game breeding and hunting preserve area" as that term is
1470	1470	17 used in the Wildlife Code. This paragraph is exempt from the
1471	1471	18 provisions of Section 3-75.
1472	1472	19 (20) A motor vehicle, as that term is defined in Section
1473	1473	20 1-146 of the Illinois Vehicle Code, that is donated to a
1474	1474	21 corporation, limited liability company, society, association,
1475	1475	22 foundation, or institution that is determined by the
1476	1476	23 Department to be organized and operated exclusively for
1477	1477	24 educational purposes. For purposes of this exemption, "a
1478	1478	25 corporation, limited liability company, society, association,
1479	1479	26 foundation, or institution organized and operated exclusively
1480	1480
1481	1481
1482	1482
1483	1483
1484	1484
1485	1485	HB5577 - 40 - LRB103 38816 HLH 68953 b
1486	1486
1487	1487
1488	1488	HB5577- 41 -LRB103 38816 HLH 68953 b HB5577 - 41 - LRB103 38816 HLH 68953 b
1489	1489	HB5577 - 41 - LRB103 38816 HLH 68953 b
1490	1490	1 for educational purposes" means all tax-supported public
1491	1491	2 schools, private schools that offer systematic instruction in
1492	1492	3 useful branches of learning by methods common to public
1493	1493	4 schools and that compare favorably in their scope and
1494	1494	5 intensity with the course of study presented in tax-supported
1495	1495	6 schools, and vocational or technical schools or institutes
1496	1496	7 organized and operated exclusively to provide a course of
1497	1497	8 study of not less than 6 weeks duration and designed to prepare
1498	1498	9 individuals to follow a trade or to pursue a manual,
1499	1499	10 technical, mechanical, industrial, business, or commercial
1500	1500	11 occupation.
1501	1501	12 (21) Beginning January 1, 2000, personal property,
1502	1502	13 including food, purchased through fundraising events for the
1503	1503	14 benefit of a public or private elementary or secondary school,
1504	1504	15 a group of those schools, or one or more school districts if
1505	1505	16 the events are sponsored by an entity recognized by the school
1506	1506	17 district that consists primarily of volunteers and includes
1507	1507	18 parents and teachers of the school children. This paragraph
1508	1508	19 does not apply to fundraising events (i) for the benefit of
1509	1509	20 private home instruction or (ii) for which the fundraising
1510	1510	21 entity purchases the personal property sold at the events from
1511	1511	22 another individual or entity that sold the property for the
1512	1512	23 purpose of resale by the fundraising entity and that profits
1513	1513	24 from the sale to the fundraising entity. This paragraph is
1514	1514	25 exempt from the provisions of Section 3-75.
1515	1515	26 (22) Beginning January 1, 2000 and through December 31,
1516	1516
1517	1517
1518	1518
1519	1519
1520	1520
1521	1521	HB5577 - 41 - LRB103 38816 HLH 68953 b
1522	1522
1523	1523
1524	1524	HB5577- 42 -LRB103 38816 HLH 68953 b HB5577 - 42 - LRB103 38816 HLH 68953 b
1525	1525	HB5577 - 42 - LRB103 38816 HLH 68953 b
1526	1526	1 2001, new or used automatic vending machines that prepare and
1527	1527	2 serve hot food and beverages, including coffee, soup, and
1528	1528	3 other items, and replacement parts for these machines.
1529	1529	4 Beginning January 1, 2002 and through June 30, 2003, machines
1530	1530	5 and parts for machines used in commercial, coin-operated
1531	1531	6 amusement and vending business if a use or occupation tax is
1532	1532	7 paid on the gross receipts derived from the use of the
1533	1533	8 commercial, coin-operated amusement and vending machines. This
1534	1534	9 paragraph is exempt from the provisions of Section 3-75.
1535	1535	10 (23) Beginning August 23, 2001 and through June 30, 2016,
1536	1536	11 food for human consumption that is to be consumed off the
1537	1537	12 premises where it is sold (other than alcoholic beverages,
1538	1538	13 soft drinks, and food that has been prepared for immediate
1539	1539	14 consumption) and prescription and nonprescription medicines,
1540	1540	15 drugs, medical appliances, and insulin, urine testing
1541	1541	16 materials, syringes, and needles used by diabetics, for human
1542	1542	17 use, when purchased for use by a person receiving medical
1543	1543	18 assistance under Article V of the Illinois Public Aid Code who
1544	1544	19 resides in a licensed long-term care facility, as defined in
1545	1545	20 the Nursing Home Care Act, or in a licensed facility as defined
1546	1546	21 in the ID/DD Community Care Act, the MC/DD Act, or the
1547	1547	22 Specialized Mental Health Rehabilitation Act of 2013.
1548	1548	23 (24) Beginning on August 2, 2001 (the effective date of
1549	1549	24 Public Act 92-227), computers and communications equipment
1550	1550	25 utilized for any hospital purpose and equipment used in the
1551	1551	26 diagnosis, analysis, or treatment of hospital patients
1552	1552
1553	1553
1554	1554
1555	1555
1556	1556
1557	1557	HB5577 - 42 - LRB103 38816 HLH 68953 b
1558	1558
1559	1559
1560	1560	HB5577- 43 -LRB103 38816 HLH 68953 b HB5577 - 43 - LRB103 38816 HLH 68953 b
1561	1561	HB5577 - 43 - LRB103 38816 HLH 68953 b
1562	1562	1 purchased by a lessor who leases the equipment, under a lease
1563	1563	2 of one year or longer executed or in effect at the time the
1564	1564	3 lessor would otherwise be subject to the tax imposed by this
1565	1565	4 Act, to a hospital that has been issued an active tax exemption
1566	1566	5 identification number by the Department under Section 1g of
1567	1567	6 the Retailers' Occupation Tax Act. If the equipment is leased
1568	1568	7 in a manner that does not qualify for this exemption or is used
1569	1569	8 in any other nonexempt manner, the lessor shall be liable for
1570	1570	9 the tax imposed under this Act or the Use Tax Act, as the case
1571	1571	10 may be, based on the fair market value of the property at the
1572	1572	11 time the nonqualifying use occurs. No lessor shall collect or
1573	1573	12 attempt to collect an amount (however designated) that
1574	1574	13 purports to reimburse that lessor for the tax imposed by this
1575	1575	14 Act or the Use Tax Act, as the case may be, if the tax has not
1576	1576	15 been paid by the lessor. If a lessor improperly collects any
1577	1577	16 such amount from the lessee, the lessee shall have a legal
1578	1578	17 right to claim a refund of that amount from the lessor. If,
1579	1579	18 however, that amount is not refunded to the lessee for any
1580	1580	19 reason, the lessor is liable to pay that amount to the
1581	1581	20 Department. This paragraph is exempt from the provisions of
1582	1582	21 Section 3-75.
1583	1583	22 (25) Beginning on August 2, 2001 (the effective date of
1584	1584	23 Public Act 92-227), personal property purchased by a lessor
1585	1585	24 who leases the property, under a lease of one year or longer
1586	1586	25 executed or in effect at the time the lessor would otherwise be
1587	1587	26 subject to the tax imposed by this Act, to a governmental body
1588	1588
1589	1589
1590	1590
1591	1591
1592	1592
1593	1593	HB5577 - 43 - LRB103 38816 HLH 68953 b
1594	1594
1595	1595
1596	1596	HB5577- 44 -LRB103 38816 HLH 68953 b HB5577 - 44 - LRB103 38816 HLH 68953 b
1597	1597	HB5577 - 44 - LRB103 38816 HLH 68953 b
1598	1598	1 that has been issued an active tax exemption identification
1599	1599	2 number by the Department under Section 1g of the Retailers'
1600	1600	3 Occupation Tax Act. If the property is leased in a manner that
1601	1601	4 does not qualify for this exemption or is used in any other
1602	1602	5 nonexempt manner, the lessor shall be liable for the tax
1603	1603	6 imposed under this Act or the Use Tax Act, as the case may be,
1604	1604	7 based on the fair market value of the property at the time the
1605	1605	8 nonqualifying use occurs. No lessor shall collect or attempt
1606	1606	9 to collect an amount (however designated) that purports to
1607	1607	10 reimburse that lessor for the tax imposed by this Act or the
1608	1608	11 Use Tax Act, as the case may be, if the tax has not been paid
1609	1609	12 by the lessor. If a lessor improperly collects any such amount
1610	1610	13 from the lessee, the lessee shall have a legal right to claim a
1611	1611	14 refund of that amount from the lessor. If, however, that
1612	1612	15 amount is not refunded to the lessee for any reason, the lessor
1613	1613	16 is liable to pay that amount to the Department. This paragraph
1614	1614	17 is exempt from the provisions of Section 3-75.
1615	1615	18 (26) Beginning January 1, 2008, tangible personal property
1616	1616	19 used in the construction or maintenance of a community water
1617	1617	20 supply, as defined under Section 3.145 of the Environmental
1618	1618	21 Protection Act, that is operated by a not-for-profit
1619	1619	22 corporation that holds a valid water supply permit issued
1620	1620	23 under Title IV of the Environmental Protection Act. This
1621	1621	24 paragraph is exempt from the provisions of Section 3-75.
1622	1622	25 (27) Beginning January 1, 2010 and continuing through
1623	1623	26 December 31, 2029, materials, parts, equipment, components,
1624	1624
1625	1625
1626	1626
1627	1627
1628	1628
1629	1629	HB5577 - 44 - LRB103 38816 HLH 68953 b
1630	1630
1631	1631
1632	1632	HB5577- 45 -LRB103 38816 HLH 68953 b HB5577 - 45 - LRB103 38816 HLH 68953 b
1633	1633	HB5577 - 45 - LRB103 38816 HLH 68953 b
1634	1634	1 and furnishings incorporated into or upon an aircraft as part
1635	1635	2 of the modification, refurbishment, completion, replacement,
1636	1636	3 repair, or maintenance of the aircraft. This exemption
1637	1637	4 includes consumable supplies used in the modification,
1638	1638	5 refurbishment, completion, replacement, repair, and
1639	1639	6 maintenance of aircraft. However, until January 1, 2024, this
1640	1640	7 exemption excludes any materials, parts, equipment,
1641	1641	8 components, and consumable supplies used in the modification,
1642	1642	9 replacement, repair, and maintenance of aircraft engines or
1643	1643	10 power plants, whether such engines or power plants are
1644	1644	11 installed or uninstalled upon any such aircraft. "Consumable
1645	1645	12 supplies" include, but are not limited to, adhesive, tape,
1646	1646	13 sandpaper, general purpose lubricants, cleaning solution,
1647	1647	14 latex gloves, and protective films.
1648	1648	15 Beginning January 1, 2010 and continuing through December
1649	1649	16 31, 2023, this exemption applies only to the use of qualifying
1650	1650	17 tangible personal property transferred incident to the
1651	1651	18 modification, refurbishment, completion, replacement, repair,
1652	1652	19 or maintenance of aircraft by persons who (i) hold an Air
1653	1653	20 Agency Certificate and are empowered to operate an approved
1654	1654	21 repair station by the Federal Aviation Administration, (ii)
1655	1655	22 have a Class IV Rating, and (iii) conduct operations in
1656	1656	23 accordance with Part 145 of the Federal Aviation Regulations.
1657	1657	24 From January 1, 2024 through December 31, 2029, this exemption
1658	1658	25 applies only to the use of qualifying tangible personal
1659	1659	26 property by: (A) persons who modify, refurbish, complete,
1660	1660
1661	1661
1662	1662
1663	1663
1664	1664
1665	1665	HB5577 - 45 - LRB103 38816 HLH 68953 b
1666	1666
1667	1667
1668	1668	HB5577- 46 -LRB103 38816 HLH 68953 b HB5577 - 46 - LRB103 38816 HLH 68953 b
1669	1669	HB5577 - 46 - LRB103 38816 HLH 68953 b
1670	1670	1 repair, replace, or maintain aircraft and who (i) hold an Air
1671	1671	2 Agency Certificate and are empowered to operate an approved
1672	1672	3 repair station by the Federal Aviation Administration, (ii)
1673	1673	4 have a Class IV Rating, and (iii) conduct operations in
1674	1674	5 accordance with Part 145 of the Federal Aviation Regulations;
1675	1675	6 and (B) persons who engage in the modification, replacement,
1676	1676	7 repair, and maintenance of aircraft engines or power plants
1677	1677	8 without regard to whether or not those persons meet the
1678	1678	9 qualifications of item (A).
1679	1679	10 The exemption does not include aircraft operated by a
1680	1680	11 commercial air carrier providing scheduled passenger air
1681	1681	12 service pursuant to authority issued under Part 121 or Part
1682	1682	13 129 of the Federal Aviation Regulations. The changes made to
1683	1683	14 this paragraph (27) by Public Act 98-534 are declarative of
1684	1684	15 existing law. It is the intent of the General Assembly that the
1685	1685	16 exemption under this paragraph (27) applies continuously from
1686	1686	17 January 1, 2010 through December 31, 2024; however, no claim
1687	1687	18 for credit or refund is allowed for taxes paid as a result of
1688	1688	19 the disallowance of this exemption on or after January 1, 2015
1689	1689	20 and prior to February 5, 2020 (the effective date of Public Act
1690	1690	21 101-629).
1691	1691	22 (28) Tangible personal property purchased by a
1692	1692	23 public-facilities corporation, as described in Section
1693	1693	24 11-65-10 of the Illinois Municipal Code, for purposes of
1694	1694	25 constructing or furnishing a municipal convention hall, but
1695	1695	26 only if the legal title to the municipal convention hall is
1696	1696
1697	1697
1698	1698
1699	1699
1700	1700
1701	1701	HB5577 - 46 - LRB103 38816 HLH 68953 b
1702	1702
1703	1703
1704	1704	HB5577- 47 -LRB103 38816 HLH 68953 b HB5577 - 47 - LRB103 38816 HLH 68953 b
1705	1705	HB5577 - 47 - LRB103 38816 HLH 68953 b
1706	1706	1 transferred to the municipality without any further
1707	1707	2 consideration by or on behalf of the municipality at the time
1708	1708	3 of the completion of the municipal convention hall or upon the
1709	1709	4 retirement or redemption of any bonds or other debt
1710	1710	5 instruments issued by the public-facilities corporation in
1711	1711	6 connection with the development of the municipal convention
1712	1712	7 hall. This exemption includes existing public-facilities
1713	1713	8 corporations as provided in Section 11-65-25 of the Illinois
1714	1714	9 Municipal Code. This paragraph is exempt from the provisions
1715	1715	10 of Section 3-75.
1716	1716	11 (29) Beginning January 1, 2017 and through December 31,
1717	1717	12 2026, menstrual pads, tampons, and menstrual cups.
1718	1718	13 (30) Tangible personal property transferred to a purchaser
1719	1719	14 who is exempt from the tax imposed by this Act by operation of
1720	1720	15 federal law. This paragraph is exempt from the provisions of
1721	1721	16 Section 3-75.
1722	1722	17 (31) Qualified tangible personal property used in the
1723	1723	18 construction or operation of a data center that has been
1724	1724	19 granted a certificate of exemption by the Department of
1725	1725	20 Commerce and Economic Opportunity, whether that tangible
1726	1726	21 personal property is purchased by the owner, operator, or
1727	1727	22 tenant of the data center or by a contractor or subcontractor
1728	1728	23 of the owner, operator, or tenant. Data centers that would
1729	1729	24 have qualified for a certificate of exemption prior to January
1730	1730	25 1, 2020 had Public Act 101-31 been in effect, may apply for and
1731	1731	26 obtain an exemption for subsequent purchases of computer
1732	1732
1733	1733
1734	1734
1735	1735
1736	1736
1737	1737	HB5577 - 47 - LRB103 38816 HLH 68953 b
1738	1738
1739	1739
1740	1740	HB5577- 48 -LRB103 38816 HLH 68953 b HB5577 - 48 - LRB103 38816 HLH 68953 b
1741	1741	HB5577 - 48 - LRB103 38816 HLH 68953 b
1742	1742	1 equipment or enabling software purchased or leased to upgrade,
1743	1743	2 supplement, or replace computer equipment or enabling software
1744	1744	3 purchased or leased in the original investment that would have
1745	1745	4 qualified.
1746	1746	5 The Department of Commerce and Economic Opportunity shall
1747	1747	6 grant a certificate of exemption under this item (31) to
1748	1748	7 qualified data centers as defined by Section 605-1025 of the
1749	1749	8 Department of Commerce and Economic Opportunity Law of the
1750	1750	9 Civil Administrative Code of Illinois.
1751	1751	10 For the purposes of this item (31):
1752	1752	11 "Data center" means a building or a series of
1753	1753	12 buildings rehabilitated or constructed to house working
1754	1754	13 servers in one physical location or multiple sites within
1755	1755	14 the State of Illinois.
1756	1756	15 "Qualified tangible personal property" means:
1757	1757	16 electrical systems and equipment; climate control and
1758	1758	17 chilling equipment and systems; mechanical systems and
1759	1759	18 equipment; monitoring and secure systems; emergency
1760	1760	19 generators; hardware; computers; servers; data storage
1761	1761	20 devices; network connectivity equipment; racks; cabinets;
1762	1762	21 telecommunications cabling infrastructure; raised floor
1763	1763	22 systems; peripheral components or systems; software;
1764	1764	23 mechanical, electrical, or plumbing systems; battery
1765	1765	24 systems; cooling systems and towers; temperature control
1766	1766	25 systems; other cabling; and other data center
1767	1767	26 infrastructure equipment and systems necessary to operate
1768	1768
1769	1769
1770	1770
1771	1771
1772	1772
1773	1773	HB5577 - 48 - LRB103 38816 HLH 68953 b
1774	1774
1775	1775
1776	1776	HB5577- 49 -LRB103 38816 HLH 68953 b HB5577 - 49 - LRB103 38816 HLH 68953 b
1777	1777	HB5577 - 49 - LRB103 38816 HLH 68953 b
1778	1778	1 qualified tangible personal property, including fixtures;
1779	1779	2 and component parts of any of the foregoing, including
1780	1780	3 installation, maintenance, repair, refurbishment, and
1781	1781	4 replacement of qualified tangible personal property to
1782	1782	5 generate, transform, transmit, distribute, or manage
1783	1783	6 electricity necessary to operate qualified tangible
1784	1784	7 personal property; and all other tangible personal
1785	1785	8 property that is essential to the operations of a computer
1786	1786	9 data center. The term "qualified tangible personal
1787	1787	10 property" also includes building materials physically
1788	1788	11 incorporated into in to the qualifying data center. To
1789	1789	12 document the exemption allowed under this Section, the
1790	1790	13 retailer must obtain from the purchaser a copy of the
1791	1791	14 certificate of eligibility issued by the Department of
1792	1792	15 Commerce and Economic Opportunity.
1793	1793	16 This item (31) is exempt from the provisions of Section
1794	1794	17 3-75.
1795	1795	18 (32) Beginning July 1, 2022, breast pumps, breast pump
1796	1796	19 collection and storage supplies, and breast pump kits. This
1797	1797	20 item (32) is exempt from the provisions of Section 3-75. As
1798	1798	21 used in this item (32):
1799	1799	22 "Breast pump" means an electrically controlled or
1800	1800	23 manually controlled pump device designed or marketed to be
1801	1801	24 used to express milk from a human breast during lactation,
1802	1802	25 including the pump device and any battery, AC adapter, or
1803	1803	26 other power supply unit that is used to power the pump
1804	1804
1805	1805
1806	1806
1807	1807
1808	1808
1809	1809	HB5577 - 49 - LRB103 38816 HLH 68953 b
1810	1810
1811	1811
1812	1812	HB5577- 50 -LRB103 38816 HLH 68953 b HB5577 - 50 - LRB103 38816 HLH 68953 b
1813	1813	HB5577 - 50 - LRB103 38816 HLH 68953 b
1814	1814	1 device and is packaged and sold with the pump device at the
1815	1815	2 time of sale.
1816	1816	3 "Breast pump collection and storage supplies" means
1817	1817	4 items of tangible personal property designed or marketed
1818	1818	5 to be used in conjunction with a breast pump to collect
1819	1819	6 milk expressed from a human breast and to store collected
1820	1820	7 milk until it is ready for consumption.
1821	1821	8 "Breast pump collection and storage supplies"
1822	1822	9 includes, but is not limited to: breast shields and breast
1823	1823	10 shield connectors; breast pump tubes and tubing adapters;
1824	1824	11 breast pump valves and membranes; backflow protectors and
1825	1825	12 backflow protector adaptors; bottles and bottle caps
1826	1826	13 specific to the operation of the breast pump; and breast
1827	1827	14 milk storage bags.
1828	1828	15 "Breast pump collection and storage supplies" does not
1829	1829	16 include: (1) bottles and bottle caps not specific to the
1830	1830	17 operation of the breast pump; (2) breast pump travel bags
1831	1831	18 and other similar carrying accessories, including ice
1832	1832	19 packs, labels, and other similar products; (3) breast pump
1833	1833	20 cleaning supplies; (4) nursing bras, bra pads, breast
1834	1834	21 shells, and other similar products; and (5) creams,
1835	1835	22 ointments, and other similar products that relieve
1836	1836	23 breastfeeding-related symptoms or conditions of the
1837	1837	24 breasts or nipples, unless sold as part of a breast pump
1838	1838	25 kit that is pre-packaged by the breast pump manufacturer
1839	1839	26 or distributor.
1840	1840
1841	1841
1842	1842
1843	1843
1844	1844
1845	1845	HB5577 - 50 - LRB103 38816 HLH 68953 b
1846	1846
1847	1847
1848	1848	HB5577- 51 -LRB103 38816 HLH 68953 b HB5577 - 51 - LRB103 38816 HLH 68953 b
1849	1849	HB5577 - 51 - LRB103 38816 HLH 68953 b
1850	1850	1 "Breast pump kit" means a kit that: (1) contains no
1851	1851	2 more than a breast pump, breast pump collection and
1852	1852	3 storage supplies, a rechargeable battery for operating the
1853	1853	4 breast pump, a breastmilk cooler, bottle stands, ice
1854	1854	5 packs, and a breast pump carrying case; and (2) is
1855	1855	6 pre-packaged as a breast pump kit by the breast pump
1856	1856	7 manufacturer or distributor.
1857	1857	8 (33) Tangible personal property sold by or on behalf of
1858	1858	9 the State Treasurer pursuant to the Revised Uniform Unclaimed
1859	1859	10 Property Act. This item (33) is exempt from the provisions of
1860	1860	11 Section 3-75.
1861	1861	12 (34) Beginning on January 1, 2024, tangible personal
1862	1862	13 property purchased by an active duty member of the armed
1863	1863	14 forces of the United States who presents valid military
1864	1864	15 identification and purchases the property using a form of
1865	1865	16 payment where the federal government is the payor. The member
1866	1866	17 of the armed forces must complete, at the point of sale, a form
1867	1867	18 prescribed by the Department of Revenue documenting that the
1868	1868	19 transaction is eligible for the exemption under this
1869	1869	20 paragraph. Retailers must keep the form as documentation of
1870	1870	21 the exemption in their records for a period of not less than 6
1871	1871	22 years. "Armed forces of the United States" means the United
1872	1872	23 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1873	1873	24 This paragraph is exempt from the provisions of Section 3-75.
1874	1874	25 (35) Beginning on January 1, 2025, medical appliances and
1875	1875	26 products that are classified as Class III medical devices by
1876	1876
1877	1877
1878	1878
1879	1879
1880	1880
1881	1881	HB5577 - 51 - LRB103 38816 HLH 68953 b
1882	1882
1883	1883
1884	1884	HB5577- 52 -LRB103 38816 HLH 68953 b HB5577 - 52 - LRB103 38816 HLH 68953 b
1885	1885	HB5577 - 52 - LRB103 38816 HLH 68953 b
1886	1886	1 the United States Food and Drug Administration and that are
1887	1887	2 used for cancer treatment pursuant to a prescription, as well
1888	1888	3 as any accessories and components related to those appliances
1889	1889	4 and devices. As used in this paragraph, "medical appliance"
1890	1890	5 means a product that was classified as a medical appliance and
1891	1891	6 was subject to a 1% rate of tax immediately prior to the
1892	1892	7 effective date of this amendatory Act of the 103rd General
1893	1893	8 Assembly, including, but not limited to, devices used to treat
1894	1894	9 amyotrophic lateral sclerosis, as well as other items as
1895	1895	10 determined by the Department by rule. This paragraph is exempt
1896	1896	11 from the provisions of Section 3-75.
1897	1897	12 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1898	1898	13 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1899	1899	14 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1900	1900	15 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1901	1901	16 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1902	1902	17 revised 12-12-23.)
1903	1903	18 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
1904	1904	19 Sec. 3-10. Rate of tax. Unless otherwise provided in this
1905	1905	20 Section, the tax imposed by this Act is at the rate of 6.25% of
1906	1906	21 the selling price of tangible personal property transferred as
1907	1907	22 an incident to the sale of service, but, for the purpose of
1908	1908	23 computing this tax, in no event shall the selling price be less
1909	1909	24 than the cost price of the property to the serviceman.
1910	1910	25 Beginning on July 1, 2000 and through December 31, 2000,
1911	1911
1912	1912
1913	1913
1914	1914
1915	1915
1916	1916	HB5577 - 52 - LRB103 38816 HLH 68953 b
1917	1917
1918	1918
1919	1919	HB5577- 53 -LRB103 38816 HLH 68953 b HB5577 - 53 - LRB103 38816 HLH 68953 b
1920	1920	HB5577 - 53 - LRB103 38816 HLH 68953 b
1921	1921	1 with respect to motor fuel, as defined in Section 1.1 of the
1922	1922	2 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1923	1923	3 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1924	1924	4 With respect to gasohol, as defined in the Use Tax Act, the
1925	1925	5 tax imposed by this Act applies to (i) 70% of the selling price
1926	1926	6 of property transferred as an incident to the sale of service
1927	1927	7 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
1928	1928	8 of the selling price of property transferred as an incident to
1929	1929	9 the sale of service on or after July 1, 2003 and on or before
1930	1930	10 July 1, 2017, (iii) 100% of the selling price of property
1931	1931	11 transferred as an incident to the sale of service after July 1,
1932	1932	12 2017 and before January 1, 2024, (iv) 90% of the selling price
1933	1933	13 of property transferred as an incident to the sale of service
1934	1934	14 on or after January 1, 2024 and on or before December 31, 2028,
1935	1935	15 and (v) 100% of the selling price of property transferred as an
1936	1936	16 incident to the sale of service after December 31, 2028. If, at
1937	1937	17 any time, however, the tax under this Act on sales of gasohol,
1938	1938	18 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
1939	1939	19 then the tax imposed by this Act applies to 100% of the
1940	1940	20 proceeds of sales of gasohol made during that time.
1941	1941	21 With respect to mid-range ethanol blends, as defined in
1942	1942	22 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
1943	1943	23 applies to (i) 80% of the selling price of property
1944	1944	24 transferred as an incident to the sale of service on or after
1945	1945	25 January 1, 2024 and on or before December 31, 2028 and (ii)
1946	1946	26 100% of the selling price of property transferred as an
1947	1947
1948	1948
1949	1949
1950	1950
1951	1951
1952	1952	HB5577 - 53 - LRB103 38816 HLH 68953 b
1953	1953
1954	1954
1955	1955	HB5577- 54 -LRB103 38816 HLH 68953 b HB5577 - 54 - LRB103 38816 HLH 68953 b
1956	1956	HB5577 - 54 - LRB103 38816 HLH 68953 b
1957	1957	1 incident to the sale of service after December 31, 2028. If, at
1958	1958	2 any time, however, the tax under this Act on sales of mid-range
1959	1959	3 ethanol blends is imposed at the rate of 1.25%, then the tax
1960	1960	4 imposed by this Act applies to 100% of the selling price of
1961	1961	5 mid-range ethanol blends transferred as an incident to the
1962	1962	6 sale of service during that time.
1963	1963	7 With respect to majority blended ethanol fuel, as defined
1964	1964	8 in the Use Tax Act, the tax imposed by this Act does not apply
1965	1965	9 to the selling price of property transferred as an incident to
1966	1966	10 the sale of service on or after July 1, 2003 and on or before
1967	1967	11 December 31, 2028 but applies to 100% of the selling price
1968	1968	12 thereafter.
1969	1969	13 With respect to biodiesel blends, as defined in the Use
1970	1970	14 Tax Act, with no less than 1% and no more than 10% biodiesel,
1971	1971	15 the tax imposed by this Act applies to (i) 80% of the selling
1972	1972	16 price of property transferred as an incident to the sale of
1973	1973	17 service on or after July 1, 2003 and on or before December 31,
1974	1974	18 2018 and (ii) 100% of the proceeds of the selling price after
1975	1975	19 December 31, 2018 and before January 1, 2024. On and after
1976	1976	20 January 1, 2024 and on or before December 31, 2030, the
1977	1977	21 taxation of biodiesel, renewable diesel, and biodiesel blends
1978	1978	22 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1979	1979	23 at any time, however, the tax under this Act on sales of
1980	1980	24 biodiesel blends, as defined in the Use Tax Act, with no less
1981	1981	25 than 1% and no more than 10% biodiesel is imposed at the rate
1982	1982	26 of 1.25%, then the tax imposed by this Act applies to 100% of
1983	1983
1984	1984
1985	1985
1986	1986
1987	1987
1988	1988	HB5577 - 54 - LRB103 38816 HLH 68953 b
1989	1989
1990	1990
1991	1991	HB5577- 55 -LRB103 38816 HLH 68953 b HB5577 - 55 - LRB103 38816 HLH 68953 b
1992	1992	HB5577 - 55 - LRB103 38816 HLH 68953 b
1993	1993	1 the proceeds of sales of biodiesel blends with no less than 1%
1994	1994	2 and no more than 10% biodiesel made during that time.
1995	1995	3 With respect to biodiesel, as defined in the Use Tax Act,
1996	1996	4 and biodiesel blends, as defined in the Use Tax Act, with more
1997	1997	5 than 10% but no more than 99% biodiesel, the tax imposed by
1998	1998	6 this Act does not apply to the proceeds of the selling price of
1999	1999	7 property transferred as an incident to the sale of service on
2000	2000	8 or after July 1, 2003 and on or before December 31, 2023. On
2001	2001	9 and after January 1, 2024 and on or before December 31, 2030,
2002	2002	10 the taxation of biodiesel, renewable diesel, and biodiesel
2003	2003	11 blends shall be as provided in Section 3-5.1 of the Use Tax
2004	2004	12 Act.
2005	2005	13 At the election of any registered serviceman made for each
2006	2006	14 fiscal year, sales of service in which the aggregate annual
2007	2007	15 cost price of tangible personal property transferred as an
2008	2008	16 incident to the sales of service is less than 35%, or 75% in
2009	2009	17 the case of servicemen transferring prescription drugs or
2010	2010	18 servicemen engaged in graphic arts production, of the
2011	2011	19 aggregate annual total gross receipts from all sales of
2012	2012	20 service, the tax imposed by this Act shall be based on the
2013	2013	21 serviceman's cost price of the tangible personal property
2014	2014	22 transferred as an incident to the sale of those services.
2015	2015	23 Until July 1, 2022 and beginning again on July 1, 2023, the
2016	2016	24 tax shall be imposed at the rate of 1% on food prepared for
2017	2017	25 immediate consumption and transferred incident to a sale of
2018	2018	26 service subject to this Act or the Service Occupation Tax Act
2019	2019
2020	2020
2021	2021
2022	2022
2023	2023
2024	2024	HB5577 - 55 - LRB103 38816 HLH 68953 b
2025	2025
2026	2026
2027	2027	HB5577- 56 -LRB103 38816 HLH 68953 b HB5577 - 56 - LRB103 38816 HLH 68953 b
2028	2028	HB5577 - 56 - LRB103 38816 HLH 68953 b
2029	2029	1 by an entity licensed under the Hospital Licensing Act, the
2030	2030	2 Nursing Home Care Act, the Assisted Living and Shared Housing
2031	2031	3 Act, the ID/DD Community Care Act, the MC/DD Act, the
2032	2032	4 Specialized Mental Health Rehabilitation Act of 2013, or the
2033	2033	5 Child Care Act of 1969, or an entity that holds a permit issued
2034	2034	6 pursuant to the Life Care Facilities Act. Until July 1, 2022
2035	2035	7 and beginning again on July 1, 2023, the tax shall also be
2036	2036	8 imposed at the rate of 1% on food for human consumption that is
2037	2037	9 to be consumed off the premises where it is sold (other than
2038	2038	10 alcoholic beverages, food consisting of or infused with adult
2039	2039	11 use cannabis, soft drinks, and food that has been prepared for
2040	2040	12 immediate consumption and is not otherwise included in this
2041	2041	13 paragraph).
2042	2042	14 Beginning on July 1, 2022 and until July 1, 2023, the tax
2043	2043	15 shall be imposed at the rate of 0% on food prepared for
2044	2044	16 immediate consumption and transferred incident to a sale of
2045	2045	17 service subject to this Act or the Service Occupation Tax Act
2046	2046	18 by an entity licensed under the Hospital Licensing Act, the
2047	2047	19 Nursing Home Care Act, the Assisted Living and Shared Housing
2048	2048	20 Act, the ID/DD Community Care Act, the MC/DD Act, the
2049	2049	21 Specialized Mental Health Rehabilitation Act of 2013, or the
2050	2050	22 Child Care Act of 1969, or an entity that holds a permit issued
2051	2051	23 pursuant to the Life Care Facilities Act. Beginning on July 1,
2052	2052	24 2022 and until July 1, 2023, the tax shall also be imposed at
2053	2053	25 the rate of 0% on food for human consumption that is to be
2054	2054	26 consumed off the premises where it is sold (other than
2055	2055
2056	2056
2057	2057
2058	2058
2059	2059
2060	2060	HB5577 - 56 - LRB103 38816 HLH 68953 b
2061	2061
2062	2062
2063	2063	HB5577- 57 -LRB103 38816 HLH 68953 b HB5577 - 57 - LRB103 38816 HLH 68953 b
2064	2064	HB5577 - 57 - LRB103 38816 HLH 68953 b
2065	2065	1 alcoholic beverages, food consisting of or infused with adult
2066	2066	2 use cannabis, soft drinks, and food that has been prepared for
2067	2067	3 immediate consumption and is not otherwise included in this
2068	2068	4 paragraph).
2069	2069	5 The tax shall also be imposed at the rate of 1% on
2070	2070	6 prescription and nonprescription medicines, drugs, medical
2071	2071	7 appliances, products classified as Class III medical devices
2072	2072	8 by the United States Food and Drug Administration that are
2073	2073	9 used for cancer treatment pursuant to a prescription, as well
2074	2074	10 as any accessories and components related to those devices,
2075	2075	11 modifications to a motor vehicle for the purpose of rendering
2076	2076	12 it usable by a person with a disability, and insulin, blood
2077	2077	13 sugar testing materials, syringes, and needles used by human
2078	2078	14 diabetics (except to the extent that those items are exempt by
2079	2079	15 the Department under paragraph (35) of Section 3-5). For the
2080	2080	16 purposes of this Section, until September 1, 2009: the term
2081	2081	17 "soft drinks" means any complete, finished, ready-to-use,
2082	2082	18 non-alcoholic drink, whether carbonated or not, including, but
2083	2083	19 not limited to, soda water, cola, fruit juice, vegetable
2084	2084	20 juice, carbonated water, and all other preparations commonly
2085	2085	21 known as soft drinks of whatever kind or description that are
2086	2086	22 contained in any closed or sealed bottle, can, carton, or
2087	2087	23 container, regardless of size; but "soft drinks" does not
2088	2088	24 include coffee, tea, non-carbonated water, infant formula,
2089	2089	25 milk or milk products as defined in the Grade A Pasteurized
2090	2090	26 Milk and Milk Products Act, or drinks containing 50% or more
2091	2091
2092	2092
2093	2093
2094	2094
2095	2095
2096	2096	HB5577 - 57 - LRB103 38816 HLH 68953 b
2097	2097
2098	2098
2099	2099	HB5577- 58 -LRB103 38816 HLH 68953 b HB5577 - 58 - LRB103 38816 HLH 68953 b
2100	2100	HB5577 - 58 - LRB103 38816 HLH 68953 b
2101	2101	1 natural fruit or vegetable juice.
2102	2102	2 Notwithstanding any other provisions of this Act,
2103	2103	3 beginning September 1, 2009, "soft drinks" means non-alcoholic
2104	2104	4 beverages that contain natural or artificial sweeteners. "Soft
2105	2105	5 drinks" does not include beverages that contain milk or milk
2106	2106	6 products, soy, rice or similar milk substitutes, or greater
2107	2107	7 than 50% of vegetable or fruit juice by volume.
2108	2108	8 Until August 1, 2009, and notwithstanding any other
2109	2109	9 provisions of this Act, "food for human consumption that is to
2110	2110	10 be consumed off the premises where it is sold" includes all
2111	2111	11 food sold through a vending machine, except soft drinks and
2112	2112	12 food products that are dispensed hot from a vending machine,
2113	2113	13 regardless of the location of the vending machine. Beginning
2114	2114	14 August 1, 2009, and notwithstanding any other provisions of
2115	2115	15 this Act, "food for human consumption that is to be consumed
2116	2116	16 off the premises where it is sold" includes all food sold
2117	2117	17 through a vending machine, except soft drinks, candy, and food
2118	2118	18 products that are dispensed hot from a vending machine,
2119	2119	19 regardless of the location of the vending machine.
2120	2120	20 Notwithstanding any other provisions of this Act,
2121	2121	21 beginning September 1, 2009, "food for human consumption that
2122	2122	22 is to be consumed off the premises where it is sold" does not
2123	2123	23 include candy. For purposes of this Section, "candy" means a
2124	2124	24 preparation of sugar, honey, or other natural or artificial
2125	2125	25 sweeteners in combination with chocolate, fruits, nuts or
2126	2126	26 other ingredients or flavorings in the form of bars, drops, or
2127	2127
2128	2128
2129	2129
2130	2130
2131	2131
2132	2132	HB5577 - 58 - LRB103 38816 HLH 68953 b
2133	2133
2134	2134
2135	2135	HB5577- 59 -LRB103 38816 HLH 68953 b HB5577 - 59 - LRB103 38816 HLH 68953 b
2136	2136	HB5577 - 59 - LRB103 38816 HLH 68953 b
2137	2137	1 pieces. "Candy" does not include any preparation that contains
2138	2138	2 flour or requires refrigeration.
2139	2139	3 Notwithstanding any other provisions of this Act,
2140	2140	4 beginning September 1, 2009, "nonprescription medicines and
2141	2141	5 drugs" does not include grooming and hygiene products. For
2142	2142	6 purposes of this Section, "grooming and hygiene products"
2143	2143	7 includes, but is not limited to, soaps and cleaning solutions,
2144	2144	8 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2145	2145	9 lotions and screens, unless those products are available by
2146	2146	10 prescription only, regardless of whether the products meet the
2147	2147	11 definition of "over-the-counter-drugs". For the purposes of
2148	2148	12 this paragraph, "over-the-counter-drug" means a drug for human
2149	2149	13 use that contains a label that identifies the product as a drug
2150	2150	14 as required by 21 CFR 201.66. The "over-the-counter-drug"
2151	2151	15 label includes:
2152	2152	16 (A) a "Drug Facts" panel; or
2153	2153	17 (B) a statement of the "active ingredient(s)" with a
2154	2154	18 list of those ingredients contained in the compound,
2155	2155	19 substance or preparation.
2156	2156	20 Beginning on January 1, 2014 (the effective date of Public
2157	2157	21 Act 98-122), "prescription and nonprescription medicines and
2158	2158	22 drugs" includes medical cannabis purchased from a registered
2159	2159	23 dispensing organization under the Compassionate Use of Medical
2160	2160	24 Cannabis Program Act.
2161	2161	25 As used in this Section, "adult use cannabis" means
2162	2162	26 cannabis subject to tax under the Cannabis Cultivation
2163	2163
2164	2164
2165	2165
2166	2166
2167	2167
2168	2168	HB5577 - 59 - LRB103 38816 HLH 68953 b
2169	2169
2170	2170
2171	2171	HB5577- 60 -LRB103 38816 HLH 68953 b HB5577 - 60 - LRB103 38816 HLH 68953 b
2172	2172	HB5577 - 60 - LRB103 38816 HLH 68953 b
2173	2173	1 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2174	2174	2 and does not include cannabis subject to tax under the
2175	2175	3 Compassionate Use of Medical Cannabis Program Act.
2176	2176	4 If the property that is acquired from a serviceman is
2177	2177	5 acquired outside Illinois and used outside Illinois before
2178	2178	6 being brought to Illinois for use here and is taxable under
2179	2179	7 this Act, the "selling price" on which the tax is computed
2180	2180	8 shall be reduced by an amount that represents a reasonable
2181	2181	9 allowance for depreciation for the period of prior
2182	2182	10 out-of-state use.
2183	2183	11 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
2184	2184	12 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
2185	2185	13 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
2186	2186	14 103-154, eff. 6-30-23.)
2187	2187	15 Section 15. The Service Occupation Tax Act is amended by
2188	2188	16 changing Sections 3-5 and 3-10 as follows:
2189	2189	17 (35 ILCS 115/3-5)
2190	2190	18 Sec. 3-5. Exemptions. The following tangible personal
2191	2191	19 property is exempt from the tax imposed by this Act:
2192	2192	20 (1) Personal property sold by a corporation, society,
2193	2193	21 association, foundation, institution, or organization, other
2194	2194	22 than a limited liability company, that is organized and
2195	2195	23 operated as a not-for-profit service enterprise for the
2196	2196	24 benefit of persons 65 years of age or older if the personal
2197	2197
2198	2198
2199	2199
2200	2200
2201	2201
2202	2202	HB5577 - 60 - LRB103 38816 HLH 68953 b
2203	2203
2204	2204
2205	2205	HB5577- 61 -LRB103 38816 HLH 68953 b HB5577 - 61 - LRB103 38816 HLH 68953 b
2206	2206	HB5577 - 61 - LRB103 38816 HLH 68953 b
2207	2207	1 property was not purchased by the enterprise for the purpose
2208	2208	2 of resale by the enterprise.
2209	2209	3 (2) Personal property purchased by a not-for-profit
2210	2210	4 Illinois county fair association for use in conducting,
2211	2211	5 operating, or promoting the county fair.
2212	2212	6 (3) Personal property purchased by any not-for-profit arts
2213	2213	7 or cultural organization that establishes, by proof required
2214	2214	8 by the Department by rule, that it has received an exemption
2215	2215	9 under Section 501(c)(3) of the Internal Revenue Code and that
2216	2216	10 is organized and operated primarily for the presentation or
2217	2217	11 support of arts or cultural programming, activities, or
2218	2218	12 services. These organizations include, but are not limited to,
2219	2219	13 music and dramatic arts organizations such as symphony
2220	2220	14 orchestras and theatrical groups, arts and cultural service
2221	2221	15 organizations, local arts councils, visual arts organizations,
2222	2222	16 and media arts organizations. On and after July 1, 2001 (the
2223	2223	17 effective date of Public Act 92-35), however, an entity
2224	2224	18 otherwise eligible for this exemption shall not make tax-free
2225	2225	19 purchases unless it has an active identification number issued
2226	2226	20 by the Department.
2227	2227	21 (4) Legal tender, currency, medallions, or gold or silver
2228	2228	22 coinage issued by the State of Illinois, the government of the
2229	2229	23 United States of America, or the government of any foreign
2230	2230	24 country, and bullion.
2231	2231	25 (5) Until July 1, 2003 and beginning again on September 1,
2232	2232	26 2004 through August 30, 2014, graphic arts machinery and
2233	2233
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238	HB5577 - 61 - LRB103 38816 HLH 68953 b
2239	2239
2240	2240
2241	2241	HB5577- 62 -LRB103 38816 HLH 68953 b HB5577 - 62 - LRB103 38816 HLH 68953 b
2242	2242	HB5577 - 62 - LRB103 38816 HLH 68953 b
2243	2243	1 equipment, including repair and replacement parts, both new
2244	2244	2 and used, and including that manufactured on special order or
2245	2245	3 purchased for lease, certified by the purchaser to be used
2246	2246	4 primarily for graphic arts production. Equipment includes
2247	2247	5 chemicals or chemicals acting as catalysts but only if the
2248	2248	6 chemicals or chemicals acting as catalysts effect a direct and
2249	2249	7 immediate change upon a graphic arts product. Beginning on
2250	2250	8 July 1, 2017, graphic arts machinery and equipment is included
2251	2251	9 in the manufacturing and assembling machinery and equipment
2252	2252	10 exemption under Section 2 of this Act.
2253	2253	11 (6) Personal property sold by a teacher-sponsored student
2254	2254	12 organization affiliated with an elementary or secondary school
2255	2255	13 located in Illinois.
2256	2256	14 (7) Farm machinery and equipment, both new and used,
2257	2257	15 including that manufactured on special order, certified by the
2258	2258	16 purchaser to be used primarily for production agriculture or
2259	2259	17 State or federal agricultural programs, including individual
2260	2260	18 replacement parts for the machinery and equipment, including
2261	2261	19 machinery and equipment purchased for lease, and including
2262	2262	20 implements of husbandry defined in Section 1-130 of the
2263	2263	21 Illinois Vehicle Code, farm machinery and agricultural
2264	2264	22 chemical and fertilizer spreaders, and nurse wagons required
2265	2265	23 to be registered under Section 3-809 of the Illinois Vehicle
2266	2266	24 Code, but excluding other motor vehicles required to be
2267	2267	25 registered under the Illinois Vehicle Code. Horticultural
2268	2268	26 polyhouses or hoop houses used for propagating, growing, or
2269	2269
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274	HB5577 - 62 - LRB103 38816 HLH 68953 b
2275	2275
2276	2276
2277	2277	HB5577- 63 -LRB103 38816 HLH 68953 b HB5577 - 63 - LRB103 38816 HLH 68953 b
2278	2278	HB5577 - 63 - LRB103 38816 HLH 68953 b
2279	2279	1 overwintering plants shall be considered farm machinery and
2280	2280	2 equipment under this item (7). Agricultural chemical tender
2281	2281	3 tanks and dry boxes shall include units sold separately from a
2282	2282	4 motor vehicle required to be licensed and units sold mounted
2283	2283	5 on a motor vehicle required to be licensed if the selling price
2284	2284	6 of the tender is separately stated.
2285	2285	7 Farm machinery and equipment shall include precision
2286	2286	8 farming equipment that is installed or purchased to be
2287	2287	9 installed on farm machinery and equipment, including, but not
2288	2288	10 limited to, tractors, harvesters, sprayers, planters, seeders,
2289	2289	11 or spreaders. Precision farming equipment includes, but is not
2290	2290	12 limited to, soil testing sensors, computers, monitors,
2291	2291	13 software, global positioning and mapping systems, and other
2292	2292	14 such equipment.
2293	2293	15 Farm machinery and equipment also includes computers,
2294	2294	16 sensors, software, and related equipment used primarily in the
2295	2295	17 computer-assisted operation of production agriculture
2296	2296	18 facilities, equipment, and activities such as, but not limited
2297	2297	19 to, the collection, monitoring, and correlation of animal and
2298	2298	20 crop data for the purpose of formulating animal diets and
2299	2299	21 agricultural chemicals.
2300	2300	22 Beginning on January 1, 2024, farm machinery and equipment
2301	2301	23 also includes electrical power generation equipment used
2302	2302	24 primarily for production agriculture.
2303	2303	25 This item (7) is exempt from the provisions of Section
2304	2304	26 3-55.
2305	2305
2306	2306
2307	2307
2308	2308
2309	2309
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2311	2311
2312	2312
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2314	2314	HB5577 - 64 - LRB103 38816 HLH 68953 b
2315	2315	1 (8) Until June 30, 2013, fuel and petroleum products sold
2316	2316	2 to or used by an air common carrier, certified by the carrier
2317	2317	3 to be used for consumption, shipment, or storage in the
2318	2318	4 conduct of its business as an air common carrier, for a flight
2319	2319	5 destined for or returning from a location or locations outside
2320	2320	6 the United States without regard to previous or subsequent
2321	2321	7 domestic stopovers.
2322	2322	8 Beginning July 1, 2013, fuel and petroleum products sold
2323	2323	9 to or used by an air carrier, certified by the carrier to be
2324	2324	10 used for consumption, shipment, or storage in the conduct of
2325	2325	11 its business as an air common carrier, for a flight that (i) is
2326	2326	12 engaged in foreign trade or is engaged in trade between the
2327	2327	13 United States and any of its possessions and (ii) transports
2328	2328	14 at least one individual or package for hire from the city of
2329	2329	15 origination to the city of final destination on the same
2330	2330	16 aircraft, without regard to a change in the flight number of
2331	2331	17 that aircraft.
2332	2332	18 (9) Proceeds of mandatory service charges separately
2333	2333	19 stated on customers' bills for the purchase and consumption of
2334	2334	20 food and beverages, to the extent that the proceeds of the
2335	2335	21 service charge are in fact turned over as tips or as a
2336	2336	22 substitute for tips to the employees who participate directly
2337	2337	23 in preparing, serving, hosting or cleaning up the food or
2338	2338	24 beverage function with respect to which the service charge is
2339	2339	25 imposed.
2340	2340	26 (10) Until July 1, 2003, oil field exploration, drilling,
2341	2341
2342	2342
2343	2343
2344	2344
2345	2345
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2347	2347
2348	2348
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2350	2350	HB5577 - 65 - LRB103 38816 HLH 68953 b
2351	2351	1 and production equipment, including (i) rigs and parts of
2352	2352	2 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2353	2353	3 pipe and tubular goods, including casing and drill strings,
2354	2354	4 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2355	2355	5 lines, (v) any individual replacement part for oil field
2356	2356	6 exploration, drilling, and production equipment, and (vi)
2357	2357	7 machinery and equipment purchased for lease; but excluding
2358	2358	8 motor vehicles required to be registered under the Illinois
2359	2359	9 Vehicle Code.
2360	2360	10 (11) Photoprocessing machinery and equipment, including
2361	2361	11 repair and replacement parts, both new and used, including
2362	2362	12 that manufactured on special order, certified by the purchaser
2363	2363	13 to be used primarily for photoprocessing, and including
2364	2364	14 photoprocessing machinery and equipment purchased for lease.
2365	2365	15 (12) Until July 1, 2028, coal and aggregate exploration,
2366	2366	16 mining, off-highway hauling, processing, maintenance, and
2367	2367	17 reclamation equipment, including replacement parts and
2368	2368	18 equipment, and including equipment purchased for lease, but
2369	2369	19 excluding motor vehicles required to be registered under the
2370	2370	20 Illinois Vehicle Code. The changes made to this Section by
2371	2371	21 Public Act 97-767 apply on and after July 1, 2003, but no claim
2372	2372	22 for credit or refund is allowed on or after August 16, 2013
2373	2373	23 (the effective date of Public Act 98-456) for such taxes paid
2374	2374	24 during the period beginning July 1, 2003 and ending on August
2375	2375	25 16, 2013 (the effective date of Public Act 98-456).
2376	2376	26 (13) Beginning January 1, 1992 and through June 30, 2016,
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	HB5577 - 65 - LRB103 38816 HLH 68953 b
2383	2383
2384	2384
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2386	2386	HB5577 - 66 - LRB103 38816 HLH 68953 b
2387	2387	1 food for human consumption that is to be consumed off the
2388	2388	2 premises where it is sold (other than alcoholic beverages,
2389	2389	3 soft drinks and food that has been prepared for immediate
2390	2390	4 consumption) and prescription and non-prescription medicines,
2391	2391	5 drugs, medical appliances, and insulin, urine testing
2392	2392	6 materials, syringes, and needles used by diabetics, for human
2393	2393	7 use, when purchased for use by a person receiving medical
2394	2394	8 assistance under Article V of the Illinois Public Aid Code who
2395	2395	9 resides in a licensed long-term care facility, as defined in
2396	2396	10 the Nursing Home Care Act, or in a licensed facility as defined
2397	2397	11 in the ID/DD Community Care Act, the MC/DD Act, or the
2398	2398	12 Specialized Mental Health Rehabilitation Act of 2013.
2399	2399	13 (14) Semen used for artificial insemination of livestock
2400	2400	14 for direct agricultural production.
2401	2401	15 (15) Horses, or interests in horses, registered with and
2402	2402	16 meeting the requirements of any of the Arabian Horse Club
2403	2403	17 Registry of America, Appaloosa Horse Club, American Quarter
2404	2404	18 Horse Association, United States Trotting Association, or
2405	2405	19 Jockey Club, as appropriate, used for purposes of breeding or
2406	2406	20 racing for prizes. This item (15) is exempt from the
2407	2407	21 provisions of Section 3-55, and the exemption provided for
2408	2408	22 under this item (15) applies for all periods beginning May 30,
2409	2409	23 1995, but no claim for credit or refund is allowed on or after
2410	2410	24 January 1, 2008 (the effective date of Public Act 95-88) for
2411	2411	25 such taxes paid during the period beginning May 30, 2000 and
2412	2412	26 ending on January 1, 2008 (the effective date of Public Act
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	HB5577 - 66 - LRB103 38816 HLH 68953 b
2419	2419
2420	2420
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2422	2422	HB5577 - 67 - LRB103 38816 HLH 68953 b
2423	2423	1 95-88).
2424	2424	2 (16) Computers and communications equipment utilized for
2425	2425	3 any hospital purpose and equipment used in the diagnosis,
2426	2426	4 analysis, or treatment of hospital patients sold to a lessor
2427	2427	5 who leases the equipment, under a lease of one year or longer
2428	2428	6 executed or in effect at the time of the purchase, to a
2429	2429	7 hospital that has been issued an active tax exemption
2430	2430	8 identification number by the Department under Section 1g of
2431	2431	9 the Retailers' Occupation Tax Act.
2432	2432	10 (17) Personal property sold to a lessor who leases the
2433	2433	11 property, under a lease of one year or longer executed or in
2434	2434	12 effect at the time of the purchase, to a governmental body that
2435	2435	13 has been issued an active tax exemption identification number
2436	2436	14 by the Department under Section 1g of the Retailers'
2437	2437	15 Occupation Tax Act.
2438	2438	16 (18) Beginning with taxable years ending on or after
2439	2439	17 December 31, 1995 and ending with taxable years ending on or
2440	2440	18 before December 31, 2004, personal property that is donated
2441	2441	19 for disaster relief to be used in a State or federally declared
2442	2442	20 disaster area in Illinois or bordering Illinois by a
2443	2443	21 manufacturer or retailer that is registered in this State to a
2444	2444	22 corporation, society, association, foundation, or institution
2445	2445	23 that has been issued a sales tax exemption identification
2446	2446	24 number by the Department that assists victims of the disaster
2447	2447	25 who reside within the declared disaster area.
2448	2448	26 (19) Beginning with taxable years ending on or after
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	HB5577 - 67 - LRB103 38816 HLH 68953 b
2455	2455
2456	2456
2457	2457	HB5577- 68 -LRB103 38816 HLH 68953 b HB5577 - 68 - LRB103 38816 HLH 68953 b
2458	2458	HB5577 - 68 - LRB103 38816 HLH 68953 b
2459	2459	1 December 31, 1995 and ending with taxable years ending on or
2460	2460	2 before December 31, 2004, personal property that is used in
2461	2461	3 the performance of infrastructure repairs in this State,
2462	2462	4 including, but not limited to, municipal roads and streets,
2463	2463	5 access roads, bridges, sidewalks, waste disposal systems,
2464	2464	6 water and sewer line extensions, water distribution and
2465	2465	7 purification facilities, storm water drainage and retention
2466	2466	8 facilities, and sewage treatment facilities, resulting from a
2467	2467	9 State or federally declared disaster in Illinois or bordering
2468	2468	10 Illinois when such repairs are initiated on facilities located
2469	2469	11 in the declared disaster area within 6 months after the
2470	2470	12 disaster.
2471	2471	13 (20) Beginning July 1, 1999, game or game birds sold at a
2472	2472	14 "game breeding and hunting preserve area" as that term is used
2473	2473	15 in the Wildlife Code. This paragraph is exempt from the
2474	2474	16 provisions of Section 3-55.
2475	2475	17 (21) A motor vehicle, as that term is defined in Section
2476	2476	18 1-146 of the Illinois Vehicle Code, that is donated to a
2477	2477	19 corporation, limited liability company, society, association,
2478	2478	20 foundation, or institution that is determined by the
2479	2479	21 Department to be organized and operated exclusively for
2480	2480	22 educational purposes. For purposes of this exemption, "a
2481	2481	23 corporation, limited liability company, society, association,
2482	2482	24 foundation, or institution organized and operated exclusively
2483	2483	25 for educational purposes" means all tax-supported public
2484	2484	26 schools, private schools that offer systematic instruction in
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	HB5577 - 68 - LRB103 38816 HLH 68953 b
2491	2491
2492	2492
2493	2493	HB5577- 69 -LRB103 38816 HLH 68953 b HB5577 - 69 - LRB103 38816 HLH 68953 b
2494	2494	HB5577 - 69 - LRB103 38816 HLH 68953 b
2495	2495	1 useful branches of learning by methods common to public
2496	2496	2 schools and that compare favorably in their scope and
2497	2497	3 intensity with the course of study presented in tax-supported
2498	2498	4 schools, and vocational or technical schools or institutes
2499	2499	5 organized and operated exclusively to provide a course of
2500	2500	6 study of not less than 6 weeks duration and designed to prepare
2501	2501	7 individuals to follow a trade or to pursue a manual,
2502	2502	8 technical, mechanical, industrial, business, or commercial
2503	2503	9 occupation.
2504	2504	10 (22) Beginning January 1, 2000, personal property,
2505	2505	11 including food, purchased through fundraising events for the
2506	2506	12 benefit of a public or private elementary or secondary school,
2507	2507	13 a group of those schools, or one or more school districts if
2508	2508	14 the events are sponsored by an entity recognized by the school
2509	2509	15 district that consists primarily of volunteers and includes
2510	2510	16 parents and teachers of the school children. This paragraph
2511	2511	17 does not apply to fundraising events (i) for the benefit of
2512	2512	18 private home instruction or (ii) for which the fundraising
2513	2513	19 entity purchases the personal property sold at the events from
2514	2514	20 another individual or entity that sold the property for the
2515	2515	21 purpose of resale by the fundraising entity and that profits
2516	2516	22 from the sale to the fundraising entity. This paragraph is
2517	2517	23 exempt from the provisions of Section 3-55.
2518	2518	24 (23) Beginning January 1, 2000 and through December 31,
2519	2519	25 2001, new or used automatic vending machines that prepare and
2520	2520	26 serve hot food and beverages, including coffee, soup, and
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	HB5577 - 69 - LRB103 38816 HLH 68953 b
2527	2527
2528	2528
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2530	2530	HB5577 - 70 - LRB103 38816 HLH 68953 b
2531	2531	1 other items, and replacement parts for these machines.
2532	2532	2 Beginning January 1, 2002 and through June 30, 2003, machines
2533	2533	3 and parts for machines used in commercial, coin-operated
2534	2534	4 amusement and vending business if a use or occupation tax is
2535	2535	5 paid on the gross receipts derived from the use of the
2536	2536	6 commercial, coin-operated amusement and vending machines. This
2537	2537	7 paragraph is exempt from the provisions of Section 3-55.
2538	2538	8 (24) Beginning on August 2, 2001 (the effective date of
2539	2539	9 Public Act 92-227), computers and communications equipment
2540	2540	10 utilized for any hospital purpose and equipment used in the
2541	2541	11 diagnosis, analysis, or treatment of hospital patients sold to
2542	2542	12 a lessor who leases the equipment, under a lease of one year or
2543	2543	13 longer executed or in effect at the time of the purchase, to a
2544	2544	14 hospital that has been issued an active tax exemption
2545	2545	15 identification number by the Department under Section 1g of
2546	2546	16 the Retailers' Occupation Tax Act. This paragraph is exempt
2547	2547	17 from the provisions of Section 3-55.
2548	2548	18 (25) Beginning on August 2, 2001 (the effective date of
2549	2549	19 Public Act 92-227), personal property sold to a lessor who
2550	2550	20 leases the property, under a lease of one year or longer
2551	2551	21 executed or in effect at the time of the purchase, to a
2552	2552	22 governmental body that has been issued an active tax exemption
2553	2553	23 identification number by the Department under Section 1g of
2554	2554	24 the Retailers' Occupation Tax Act. This paragraph is exempt
2555	2555	25 from the provisions of Section 3-55.
2556	2556	26 (26) Beginning on January 1, 2002 and through June 30,
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	HB5577 - 70 - LRB103 38816 HLH 68953 b
2563	2563
2564	2564
2565	2565	HB5577- 71 -LRB103 38816 HLH 68953 b HB5577 - 71 - LRB103 38816 HLH 68953 b
2566	2566	HB5577 - 71 - LRB103 38816 HLH 68953 b
2567	2567	1 2016, tangible personal property purchased from an Illinois
2568	2568	2 retailer by a taxpayer engaged in centralized purchasing
2569	2569	3 activities in Illinois who will, upon receipt of the property
2570	2570	4 in Illinois, temporarily store the property in Illinois (i)
2571	2571	5 for the purpose of subsequently transporting it outside this
2572	2572	6 State for use or consumption thereafter solely outside this
2573	2573	7 State or (ii) for the purpose of being processed, fabricated,
2574	2574	8 or manufactured into, attached to, or incorporated into other
2575	2575	9 tangible personal property to be transported outside this
2576	2576	10 State and thereafter used or consumed solely outside this
2577	2577	11 State. The Director of Revenue shall, pursuant to rules
2578	2578	12 adopted in accordance with the Illinois Administrative
2579	2579	13 Procedure Act, issue a permit to any taxpayer in good standing
2580	2580	14 with the Department who is eligible for the exemption under
2581	2581	15 this paragraph (26). The permit issued under this paragraph
2582	2582	16 (26) shall authorize the holder, to the extent and in the
2583	2583	17 manner specified in the rules adopted under this Act, to
2584	2584	18 purchase tangible personal property from a retailer exempt
2585	2585	19 from the taxes imposed by this Act. Taxpayers shall maintain
2586	2586	20 all necessary books and records to substantiate the use and
2587	2587	21 consumption of all such tangible personal property outside of
2588	2588	22 the State of Illinois.
2589	2589	23 (27) Beginning January 1, 2008, tangible personal property
2590	2590	24 used in the construction or maintenance of a community water
2591	2591	25 supply, as defined under Section 3.145 of the Environmental
2592	2592	26 Protection Act, that is operated by a not-for-profit
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	HB5577 - 71 - LRB103 38816 HLH 68953 b
2599	2599
2600	2600
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2602	2602	HB5577 - 72 - LRB103 38816 HLH 68953 b
2603	2603	1 corporation that holds a valid water supply permit issued
2604	2604	2 under Title IV of the Environmental Protection Act. This
2605	2605	3 paragraph is exempt from the provisions of Section 3-55.
2606	2606	4 (28) Tangible personal property sold to a
2607	2607	5 public-facilities corporation, as described in Section
2608	2608	6 11-65-10 of the Illinois Municipal Code, for purposes of
2609	2609	7 constructing or furnishing a municipal convention hall, but
2610	2610	8 only if the legal title to the municipal convention hall is
2611	2611	9 transferred to the municipality without any further
2612	2612	10 consideration by or on behalf of the municipality at the time
2613	2613	11 of the completion of the municipal convention hall or upon the
2614	2614	12 retirement or redemption of any bonds or other debt
2615	2615	13 instruments issued by the public-facilities corporation in
2616	2616	14 connection with the development of the municipal convention
2617	2617	15 hall. This exemption includes existing public-facilities
2618	2618	16 corporations as provided in Section 11-65-25 of the Illinois
2619	2619	17 Municipal Code. This paragraph is exempt from the provisions
2620	2620	18 of Section 3-55.
2621	2621	19 (29) Beginning January 1, 2010 and continuing through
2622	2622	20 December 31, 2029, materials, parts, equipment, components,
2623	2623	21 and furnishings incorporated into or upon an aircraft as part
2624	2624	22 of the modification, refurbishment, completion, replacement,
2625	2625	23 repair, or maintenance of the aircraft. This exemption
2626	2626	24 includes consumable supplies used in the modification,
2627	2627	25 refurbishment, completion, replacement, repair, and
2628	2628	26 maintenance of aircraft. However, until January 1, 2024, this
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	HB5577 - 72 - LRB103 38816 HLH 68953 b
2635	2635
2636	2636
2637	2637	HB5577- 73 -LRB103 38816 HLH 68953 b HB5577 - 73 - LRB103 38816 HLH 68953 b
2638	2638	HB5577 - 73 - LRB103 38816 HLH 68953 b
2639	2639	1 exemption excludes any materials, parts, equipment,
2640	2640	2 components, and consumable supplies used in the modification,
2641	2641	3 replacement, repair, and maintenance of aircraft engines or
2642	2642	4 power plants, whether such engines or power plants are
2643	2643	5 installed or uninstalled upon any such aircraft. "Consumable
2644	2644	6 supplies" include, but are not limited to, adhesive, tape,
2645	2645	7 sandpaper, general purpose lubricants, cleaning solution,
2646	2646	8 latex gloves, and protective films.
2647	2647	9 Beginning January 1, 2010 and continuing through December
2648	2648	10 31, 2023, this exemption applies only to the transfer of
2649	2649	11 qualifying tangible personal property incident to the
2650	2650	12 modification, refurbishment, completion, replacement, repair,
2651	2651	13 or maintenance of an aircraft by persons who (i) hold an Air
2652	2652	14 Agency Certificate and are empowered to operate an approved
2653	2653	15 repair station by the Federal Aviation Administration, (ii)
2654	2654	16 have a Class IV Rating, and (iii) conduct operations in
2655	2655	17 accordance with Part 145 of the Federal Aviation Regulations.
2656	2656	18 The exemption does not include aircraft operated by a
2657	2657	19 commercial air carrier providing scheduled passenger air
2658	2658	20 service pursuant to authority issued under Part 121 or Part
2659	2659	21 129 of the Federal Aviation Regulations. From January 1, 2024
2660	2660	22 through December 31, 2029, this exemption applies only to the
2661	2661	23 use of qualifying tangible personal property by: (A) persons
2662	2662	24 who modify, refurbish, complete, repair, replace, or maintain
2663	2663	25 aircraft and who (i) hold an Air Agency Certificate and are
2664	2664	26 empowered to operate an approved repair station by the Federal
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	HB5577 - 73 - LRB103 38816 HLH 68953 b
2671	2671
2672	2672
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2674	2674	HB5577 - 74 - LRB103 38816 HLH 68953 b
2675	2675	1 Aviation Administration, (ii) have a Class IV Rating, and
2676	2676	2 (iii) conduct operations in accordance with Part 145 of the
2677	2677	3 Federal Aviation Regulations; and (B) persons who engage in
2678	2678	4 the modification, replacement, repair, and maintenance of
2679	2679	5 aircraft engines or power plants without regard to whether or
2680	2680	6 not those persons meet the qualifications of item (A).
2681	2681	7 The changes made to this paragraph (29) by Public Act
2682	2682	8 98-534 are declarative of existing law. It is the intent of the
2683	2683	9 General Assembly that the exemption under this paragraph (29)
2684	2684	10 applies continuously from January 1, 2010 through December 31,
2685	2685	11 2024; however, no claim for credit or refund is allowed for
2686	2686	12 taxes paid as a result of the disallowance of this exemption on
2687	2687	13 or after January 1, 2015 and prior to February 5, 2020 (the
2688	2688	14 effective date of Public Act 101-629).
2689	2689	15 (30) Beginning January 1, 2017 and through December 31,
2690	2690	16 2026, menstrual pads, tampons, and menstrual cups.
2691	2691	17 (31) Tangible personal property transferred to a purchaser
2692	2692	18 who is exempt from tax by operation of federal law. This
2693	2693	19 paragraph is exempt from the provisions of Section 3-55.
2694	2694	20 (32) Qualified tangible personal property used in the
2695	2695	21 construction or operation of a data center that has been
2696	2696	22 granted a certificate of exemption by the Department of
2697	2697	23 Commerce and Economic Opportunity, whether that tangible
2698	2698	24 personal property is purchased by the owner, operator, or
2699	2699	25 tenant of the data center or by a contractor or subcontractor
2700	2700	26 of the owner, operator, or tenant. Data centers that would
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705
2706	2706	HB5577 - 74 - LRB103 38816 HLH 68953 b
2707	2707
2708	2708
2709	2709	HB5577- 75 -LRB103 38816 HLH 68953 b HB5577 - 75 - LRB103 38816 HLH 68953 b
2710	2710	HB5577 - 75 - LRB103 38816 HLH 68953 b
2711	2711	1 have qualified for a certificate of exemption prior to January
2712	2712	2 1, 2020 had Public Act 101-31 been in effect, may apply for and
2713	2713	3 obtain an exemption for subsequent purchases of computer
2714	2714	4 equipment or enabling software purchased or leased to upgrade,
2715	2715	5 supplement, or replace computer equipment or enabling software
2716	2716	6 purchased or leased in the original investment that would have
2717	2717	7 qualified.
2718	2718	8 The Department of Commerce and Economic Opportunity shall
2719	2719	9 grant a certificate of exemption under this item (32) to
2720	2720	10 qualified data centers as defined by Section 605-1025 of the
2721	2721	11 Department of Commerce and Economic Opportunity Law of the
2722	2722	12 Civil Administrative Code of Illinois.
2723	2723	13 For the purposes of this item (32):
2724	2724	14 "Data center" means a building or a series of
2725	2725	15 buildings rehabilitated or constructed to house working
2726	2726	16 servers in one physical location or multiple sites within
2727	2727	17 the State of Illinois.
2728	2728	18 "Qualified tangible personal property" means:
2729	2729	19 electrical systems and equipment; climate control and
2730	2730	20 chilling equipment and systems; mechanical systems and
2731	2731	21 equipment; monitoring and secure systems; emergency
2732	2732	22 generators; hardware; computers; servers; data storage
2733	2733	23 devices; network connectivity equipment; racks; cabinets;
2734	2734	24 telecommunications cabling infrastructure; raised floor
2735	2735	25 systems; peripheral components or systems; software;
2736	2736	26 mechanical, electrical, or plumbing systems; battery
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741
2742	2742	HB5577 - 75 - LRB103 38816 HLH 68953 b
2743	2743
2744	2744
2745	2745	HB5577- 76 -LRB103 38816 HLH 68953 b HB5577 - 76 - LRB103 38816 HLH 68953 b
2746	2746	HB5577 - 76 - LRB103 38816 HLH 68953 b
2747	2747	1 systems; cooling systems and towers; temperature control
2748	2748	2 systems; other cabling; and other data center
2749	2749	3 infrastructure equipment and systems necessary to operate
2750	2750	4 qualified tangible personal property, including fixtures;
2751	2751	5 and component parts of any of the foregoing, including
2752	2752	6 installation, maintenance, repair, refurbishment, and
2753	2753	7 replacement of qualified tangible personal property to
2754	2754	8 generate, transform, transmit, distribute, or manage
2755	2755	9 electricity necessary to operate qualified tangible
2756	2756	10 personal property; and all other tangible personal
2757	2757	11 property that is essential to the operations of a computer
2758	2758	12 data center. The term "qualified tangible personal
2759	2759	13 property" also includes building materials physically
2760	2760	14 incorporated into in to the qualifying data center. To
2761	2761	15 document the exemption allowed under this Section, the
2762	2762	16 retailer must obtain from the purchaser a copy of the
2763	2763	17 certificate of eligibility issued by the Department of
2764	2764	18 Commerce and Economic Opportunity.
2765	2765	19 This item (32) is exempt from the provisions of Section
2766	2766	20 3-55.
2767	2767	21 (33) Beginning July 1, 2022, breast pumps, breast pump
2768	2768	22 collection and storage supplies, and breast pump kits. This
2769	2769	23 item (33) is exempt from the provisions of Section 3-55. As
2770	2770	24 used in this item (33):
2771	2771	25 "Breast pump" means an electrically controlled or
2772	2772	26 manually controlled pump device designed or marketed to be
2773	2773
2774	2774
2775	2775
2776	2776
2777	2777
2778	2778	HB5577 - 76 - LRB103 38816 HLH 68953 b
2779	2779
2780	2780
2781	2781	HB5577- 77 -LRB103 38816 HLH 68953 b HB5577 - 77 - LRB103 38816 HLH 68953 b
2782	2782	HB5577 - 77 - LRB103 38816 HLH 68953 b
2783	2783	1 used to express milk from a human breast during lactation,
2784	2784	2 including the pump device and any battery, AC adapter, or
2785	2785	3 other power supply unit that is used to power the pump
2786	2786	4 device and is packaged and sold with the pump device at the
2787	2787	5 time of sale.
2788	2788	6 "Breast pump collection and storage supplies" means
2789	2789	7 items of tangible personal property designed or marketed
2790	2790	8 to be used in conjunction with a breast pump to collect
2791	2791	9 milk expressed from a human breast and to store collected
2792	2792	10 milk until it is ready for consumption.
2793	2793	11 "Breast pump collection and storage supplies"
2794	2794	12 includes, but is not limited to: breast shields and breast
2795	2795	13 shield connectors; breast pump tubes and tubing adapters;
2796	2796	14 breast pump valves and membranes; backflow protectors and
2797	2797	15 backflow protector adaptors; bottles and bottle caps
2798	2798	16 specific to the operation of the breast pump; and breast
2799	2799	17 milk storage bags.
2800	2800	18 "Breast pump collection and storage supplies" does not
2801	2801	19 include: (1) bottles and bottle caps not specific to the
2802	2802	20 operation of the breast pump; (2) breast pump travel bags
2803	2803	21 and other similar carrying accessories, including ice
2804	2804	22 packs, labels, and other similar products; (3) breast pump
2805	2805	23 cleaning supplies; (4) nursing bras, bra pads, breast
2806	2806	24 shells, and other similar products; and (5) creams,
2807	2807	25 ointments, and other similar products that relieve
2808	2808	26 breastfeeding-related symptoms or conditions of the
2809	2809
2810	2810
2811	2811
2812	2812
2813	2813
2814	2814	HB5577 - 77 - LRB103 38816 HLH 68953 b
2815	2815
2816	2816
2817	2817	HB5577- 78 -LRB103 38816 HLH 68953 b HB5577 - 78 - LRB103 38816 HLH 68953 b
2818	2818	HB5577 - 78 - LRB103 38816 HLH 68953 b
2819	2819	1 breasts or nipples, unless sold as part of a breast pump
2820	2820	2 kit that is pre-packaged by the breast pump manufacturer
2821	2821	3 or distributor.
2822	2822	4 "Breast pump kit" means a kit that: (1) contains no
2823	2823	5 more than a breast pump, breast pump collection and
2824	2824	6 storage supplies, a rechargeable battery for operating the
2825	2825	7 breast pump, a breastmilk cooler, bottle stands, ice
2826	2826	8 packs, and a breast pump carrying case; and (2) is
2827	2827	9 pre-packaged as a breast pump kit by the breast pump
2828	2828	10 manufacturer or distributor.
2829	2829	11 (34) Tangible personal property sold by or on behalf of
2830	2830	12 the State Treasurer pursuant to the Revised Uniform Unclaimed
2831	2831	13 Property Act. This item (34) is exempt from the provisions of
2832	2832	14 Section 3-55.
2833	2833	15 (35) Beginning on January 1, 2024, tangible personal
2834	2834	16 property purchased by an active duty member of the armed
2835	2835	17 forces of the United States who presents valid military
2836	2836	18 identification and purchases the property using a form of
2837	2837	19 payment where the federal government is the payor. The member
2838	2838	20 of the armed forces must complete, at the point of sale, a form
2839	2839	21 prescribed by the Department of Revenue documenting that the
2840	2840	22 transaction is eligible for the exemption under this
2841	2841	23 paragraph. Retailers must keep the form as documentation of
2842	2842	24 the exemption in their records for a period of not less than 6
2843	2843	25 years. "Armed forces of the United States" means the United
2844	2844	26 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2845	2845
2846	2846
2847	2847
2848	2848
2849	2849
2850	2850	HB5577 - 78 - LRB103 38816 HLH 68953 b
2851	2851
2852	2852
2853	2853	HB5577- 79 -LRB103 38816 HLH 68953 b HB5577 - 79 - LRB103 38816 HLH 68953 b
2854	2854	HB5577 - 79 - LRB103 38816 HLH 68953 b
2855	2855	1 This paragraph is exempt from the provisions of Section 3-55.
2856	2856	2 (36) Beginning on January 1, 2025, medical appliances and
2857	2857	3 products that are classified as Class III medical devices by
2858	2858	4 the United States Food and Drug Administration and that are
2859	2859	5 used for cancer treatment pursuant to a prescription, as well
2860	2860	6 as any accessories and components related to those appliances
2861	2861	7 and devices. As used in this paragraph, "medical appliance"
2862	2862	8 means a product that was classified as a medical appliance and
2863	2863	9 was subject to a 1% rate of tax immediately prior to the
2864	2864	10 effective date of this amendatory Act of the 103rd General
2865	2865	11 Assembly, including, but not limited to, devices used to treat
2866	2866	12 amyotrophic lateral sclerosis, as well as other items as
2867	2867	13 determined by the Department by rule. This paragraph is exempt
2868	2868	14 from the provisions of Section 3-55.
2869	2869	15 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2870	2870	16 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2871	2871	17 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2872	2872	18 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2873	2873	19 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2874	2874	20 revised 12-12-23.)
2875	2875	21 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2876	2876	22 Sec. 3-10. Rate of tax. Unless otherwise provided in this
2877	2877	23 Section, the tax imposed by this Act is at the rate of 6.25% of
2878	2878	24 the "selling price", as defined in Section 2 of the Service Use
2879	2879	25 Tax Act, of the tangible personal property. For the purpose of
2880	2880
2881	2881
2882	2882
2883	2883
2884	2884
2885	2885	HB5577 - 79 - LRB103 38816 HLH 68953 b
2886	2886
2887	2887
2888	2888	HB5577- 80 -LRB103 38816 HLH 68953 b HB5577 - 80 - LRB103 38816 HLH 68953 b
2889	2889	HB5577 - 80 - LRB103 38816 HLH 68953 b
2890	2890	1 computing this tax, in no event shall the "selling price" be
2891	2891	2 less than the cost price to the serviceman of the tangible
2892	2892	3 personal property transferred. The selling price of each item
2893	2893	4 of tangible personal property transferred as an incident of a
2894	2894	5 sale of service may be shown as a distinct and separate item on
2895	2895	6 the serviceman's billing to the service customer. If the
2896	2896	7 selling price is not so shown, the selling price of the
2897	2897	8 tangible personal property is deemed to be 50% of the
2898	2898	9 serviceman's entire billing to the service customer. When,
2899	2899	10 however, a serviceman contracts to design, develop, and
2900	2900	11 produce special order machinery or equipment, the tax imposed
2901	2901	12 by this Act shall be based on the serviceman's cost price of
2902	2902	13 the tangible personal property transferred incident to the
2903	2903	14 completion of the contract.
2904	2904	15 Beginning on July 1, 2000 and through December 31, 2000,
2905	2905	16 with respect to motor fuel, as defined in Section 1.1 of the
2906	2906	17 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2907	2907	18 the Use Tax Act, the tax is imposed at the rate of 1.25%.
2908	2908	19 With respect to gasohol, as defined in the Use Tax Act, the
2909	2909	20 tax imposed by this Act shall apply to (i) 70% of the cost
2910	2910	21 price of property transferred as an incident to the sale of
2911	2911	22 service on or after January 1, 1990, and before July 1, 2003,
2912	2912	23 (ii) 80% of the selling price of property transferred as an
2913	2913	24 incident to the sale of service on or after July 1, 2003 and on
2914	2914	25 or before July 1, 2017, (iii) 100% of the selling price of
2915	2915	26 property transferred as an incident to the sale of service
2916	2916
2917	2917
2918	2918
2919	2919
2920	2920
2921	2921	HB5577 - 80 - LRB103 38816 HLH 68953 b
2922	2922
2923	2923
2924	2924	HB5577- 81 -LRB103 38816 HLH 68953 b HB5577 - 81 - LRB103 38816 HLH 68953 b
2925	2925	HB5577 - 81 - LRB103 38816 HLH 68953 b
2926	2926	1 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
2927	2927	2 the selling price of property transferred as an incident to
2928	2928	3 the sale of service on or after January 1, 2024 and on or
2929	2929	4 before December 31, 2028, and (v) 100% of the selling price of
2930	2930	5 property transferred as an incident to the sale of service
2931	2931	6 after December 31, 2028. If, at any time, however, the tax
2932	2932	7 under this Act on sales of gasohol, as defined in the Use Tax
2933	2933	8 Act, is imposed at the rate of 1.25%, then the tax imposed by
2934	2934	9 this Act applies to 100% of the proceeds of sales of gasohol
2935	2935	10 made during that time.
2936	2936	11 With respect to mid-range ethanol blends, as defined in
2937	2937	12 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2938	2938	13 applies to (i) 80% of the selling price of property
2939	2939	14 transferred as an incident to the sale of service on or after
2940	2940	15 January 1, 2024 and on or before December 31, 2028 and (ii)
2941	2941	16 100% of the selling price of property transferred as an
2942	2942	17 incident to the sale of service after December 31, 2028. If, at
2943	2943	18 any time, however, the tax under this Act on sales of mid-range
2944	2944	19 ethanol blends is imposed at the rate of 1.25%, then the tax
2945	2945	20 imposed by this Act applies to 100% of the selling price of
2946	2946	21 mid-range ethanol blends transferred as an incident to the
2947	2947	22 sale of service during that time.
2948	2948	23 With respect to majority blended ethanol fuel, as defined
2949	2949	24 in the Use Tax Act, the tax imposed by this Act does not apply
2950	2950	25 to the selling price of property transferred as an incident to
2951	2951	26 the sale of service on or after July 1, 2003 and on or before
2952	2952
2953	2953
2954	2954
2955	2955
2956	2956
2957	2957	HB5577 - 81 - LRB103 38816 HLH 68953 b
2958	2958
2959	2959
2960	2960	HB5577- 82 -LRB103 38816 HLH 68953 b HB5577 - 82 - LRB103 38816 HLH 68953 b
2961	2961	HB5577 - 82 - LRB103 38816 HLH 68953 b
2962	2962	1 December 31, 2028 but applies to 100% of the selling price
2963	2963	2 thereafter.
2964	2964	3 With respect to biodiesel blends, as defined in the Use
2965	2965	4 Tax Act, with no less than 1% and no more than 10% biodiesel,
2966	2966	5 the tax imposed by this Act applies to (i) 80% of the selling
2967	2967	6 price of property transferred as an incident to the sale of
2968	2968	7 service on or after July 1, 2003 and on or before December 31,
2969	2969	8 2018 and (ii) 100% of the proceeds of the selling price after
2970	2970	9 December 31, 2018 and before January 1, 2024. On and after
2971	2971	10 January 1, 2024 and on or before December 31, 2030, the
2972	2972	11 taxation of biodiesel, renewable diesel, and biodiesel blends
2973	2973	12 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2974	2974	13 at any time, however, the tax under this Act on sales of
2975	2975	14 biodiesel blends, as defined in the Use Tax Act, with no less
2976	2976	15 than 1% and no more than 10% biodiesel is imposed at the rate
2977	2977	16 of 1.25%, then the tax imposed by this Act applies to 100% of
2978	2978	17 the proceeds of sales of biodiesel blends with no less than 1%
2979	2979	18 and no more than 10% biodiesel made during that time.
2980	2980	19 With respect to biodiesel, as defined in the Use Tax Act,
2981	2981	20 and biodiesel blends, as defined in the Use Tax Act, with more
2982	2982	21 than 10% but no more than 99% biodiesel material, the tax
2983	2983	22 imposed by this Act does not apply to the proceeds of the
2984	2984	23 selling price of property transferred as an incident to the
2985	2985	24 sale of service on or after July 1, 2003 and on or before
2986	2986	25 December 31, 2023. On and after January 1, 2024 and on or
2987	2987	26 before December 31, 2030, the taxation of biodiesel, renewable
2988	2988
2989	2989
2990	2990
2991	2991
2992	2992
2993	2993	HB5577 - 82 - LRB103 38816 HLH 68953 b
2994	2994
2995	2995
2996	2996	HB5577- 83 -LRB103 38816 HLH 68953 b HB5577 - 83 - LRB103 38816 HLH 68953 b
2997	2997	HB5577 - 83 - LRB103 38816 HLH 68953 b
2998	2998	1 diesel, and biodiesel blends shall be as provided in Section
2999	2999	2 3-5.1 of the Use Tax Act.
3000	3000	3 At the election of any registered serviceman made for each
3001	3001	4 fiscal year, sales of service in which the aggregate annual
3002	3002	5 cost price of tangible personal property transferred as an
3003	3003	6 incident to the sales of service is less than 35%, or 75% in
3004	3004	7 the case of servicemen transferring prescription drugs or
3005	3005	8 servicemen engaged in graphic arts production, of the
3006	3006	9 aggregate annual total gross receipts from all sales of
3007	3007	10 service, the tax imposed by this Act shall be based on the
3008	3008	11 serviceman's cost price of the tangible personal property
3009	3009	12 transferred incident to the sale of those services.
3010	3010	13 Until July 1, 2022 and beginning again on July 1, 2023, the
3011	3011	14 tax shall be imposed at the rate of 1% on food prepared for
3012	3012	15 immediate consumption and transferred incident to a sale of
3013	3013	16 service subject to this Act or the Service Use Tax Act by an
3014	3014	17 entity licensed under the Hospital Licensing Act, the Nursing
3015	3015	18 Home Care Act, the Assisted Living and Shared Housing Act, the
3016	3016	19 ID/DD Community Care Act, the MC/DD Act, the Specialized
3017	3017	20 Mental Health Rehabilitation Act of 2013, or the Child Care
3018	3018	21 Act of 1969, or an entity that holds a permit issued pursuant
3019	3019	22 to the Life Care Facilities Act. Until July 1, 2022 and
3020	3020	23 beginning again on July 1, 2023, the tax shall also be imposed
3021	3021	24 at the rate of 1% on food for human consumption that is to be
3022	3022	25 consumed off the premises where it is sold (other than
3023	3023	26 alcoholic beverages, food consisting of or infused with adult
3024	3024
3025	3025
3026	3026
3027	3027
3028	3028
3029	3029	HB5577 - 83 - LRB103 38816 HLH 68953 b
3030	3030
3031	3031
3032	3032	HB5577- 84 -LRB103 38816 HLH 68953 b HB5577 - 84 - LRB103 38816 HLH 68953 b
3033	3033	HB5577 - 84 - LRB103 38816 HLH 68953 b
3034	3034	1 use cannabis, soft drinks, and food that has been prepared for
3035	3035	2 immediate consumption and is not otherwise included in this
3036	3036	3 paragraph).
3037	3037	4 Beginning on July 1, 2022 and until July 1, 2023, the tax
3038	3038	5 shall be imposed at the rate of 0% on food prepared for
3039	3039	6 immediate consumption and transferred incident to a sale of
3040	3040	7 service subject to this Act or the Service Use Tax Act by an
3041	3041	8 entity licensed under the Hospital Licensing Act, the Nursing
3042	3042	9 Home Care Act, the Assisted Living and Shared Housing Act, the
3043	3043	10 ID/DD Community Care Act, the MC/DD Act, the Specialized
3044	3044	11 Mental Health Rehabilitation Act of 2013, or the Child Care
3045	3045	12 Act of 1969, or an entity that holds a permit issued pursuant
3046	3046	13 to the Life Care Facilities Act. Beginning July 1, 2022 and
3047	3047	14 until July 1, 2023, the tax shall also be imposed at the rate
3048	3048	15 of 0% on food for human consumption that is to be consumed off
3049	3049	16 the premises where it is sold (other than alcoholic beverages,
3050	3050	17 food consisting of or infused with adult use cannabis, soft
3051	3051	18 drinks, and food that has been prepared for immediate
3052	3052	19 consumption and is not otherwise included in this paragraph).
3053	3053	20 The tax shall also be imposed at the rate of 1% on
3054	3054	21 prescription and nonprescription medicines, drugs, medical
3055	3055	22 appliances, products classified as Class III medical devices
3056	3056	23 by the United States Food and Drug Administration that are
3057	3057	24 used for cancer treatment pursuant to a prescription, as well
3058	3058	25 as any accessories and components related to those devices,
3059	3059	26 modifications to a motor vehicle for the purpose of rendering
3060	3060
3061	3061
3062	3062
3063	3063
3064	3064
3065	3065	HB5577 - 84 - LRB103 38816 HLH 68953 b
3066	3066
3067	3067
3068	3068	HB5577- 85 -LRB103 38816 HLH 68953 b HB5577 - 85 - LRB103 38816 HLH 68953 b
3069	3069	HB5577 - 85 - LRB103 38816 HLH 68953 b
3070	3070	1 it usable by a person with a disability, and insulin, blood
3071	3071	2 sugar testing materials, syringes, and needles used by human
3072	3072	3 diabetics (except to the extent that those items are exempt by
3073	3073	4 the Department under paragraph (36) of Section 3-5). For the
3074	3074	5 purposes of this Section, until September 1, 2009: the term
3075	3075	6 "soft drinks" means any complete, finished, ready-to-use,
3076	3076	7 non-alcoholic drink, whether carbonated or not, including, but
3077	3077	8 not limited to, soda water, cola, fruit juice, vegetable
3078	3078	9 juice, carbonated water, and all other preparations commonly
3079	3079	10 known as soft drinks of whatever kind or description that are
3080	3080	11 contained in any closed or sealed can, carton, or container,
3081	3081	12 regardless of size; but "soft drinks" does not include coffee,
3082	3082	13 tea, non-carbonated water, infant formula, milk or milk
3083	3083	14 products as defined in the Grade A Pasteurized Milk and Milk
3084	3084	15 Products Act, or drinks containing 50% or more natural fruit
3085	3085	16 or vegetable juice.
3086	3086	17 Notwithstanding any other provisions of this Act,
3087	3087	18 beginning September 1, 2009, "soft drinks" means non-alcoholic
3088	3088	19 beverages that contain natural or artificial sweeteners. "Soft
3089	3089	20 drinks" does not include beverages that contain milk or milk
3090	3090	21 products, soy, rice or similar milk substitutes, or greater
3091	3091	22 than 50% of vegetable or fruit juice by volume.
3092	3092	23 Until August 1, 2009, and notwithstanding any other
3093	3093	24 provisions of this Act, "food for human consumption that is to
3094	3094	25 be consumed off the premises where it is sold" includes all
3095	3095	26 food sold through a vending machine, except soft drinks and
3096	3096
3097	3097
3098	3098
3099	3099
3100	3100
3101	3101	HB5577 - 85 - LRB103 38816 HLH 68953 b
3102	3102
3103	3103
3104	3104	HB5577- 86 -LRB103 38816 HLH 68953 b HB5577 - 86 - LRB103 38816 HLH 68953 b
3105	3105	HB5577 - 86 - LRB103 38816 HLH 68953 b
3106	3106	1 food products that are dispensed hot from a vending machine,
3107	3107	2 regardless of the location of the vending machine. Beginning
3108	3108	3 August 1, 2009, and notwithstanding any other provisions of
3109	3109	4 this Act, "food for human consumption that is to be consumed
3110	3110	5 off the premises where it is sold" includes all food sold
3111	3111	6 through a vending machine, except soft drinks, candy, and food
3112	3112	7 products that are dispensed hot from a vending machine,
3113	3113	8 regardless of the location of the vending machine.
3114	3114	9 Notwithstanding any other provisions of this Act,
3115	3115	10 beginning September 1, 2009, "food for human consumption that
3116	3116	11 is to be consumed off the premises where it is sold" does not
3117	3117	12 include candy. For purposes of this Section, "candy" means a
3118	3118	13 preparation of sugar, honey, or other natural or artificial
3119	3119	14 sweeteners in combination with chocolate, fruits, nuts or
3120	3120	15 other ingredients or flavorings in the form of bars, drops, or
3121	3121	16 pieces. "Candy" does not include any preparation that contains
3122	3122	17 flour or requires refrigeration.
3123	3123	18 Notwithstanding any other provisions of this Act,
3124	3124	19 beginning September 1, 2009, "nonprescription medicines and
3125	3125	20 drugs" does not include grooming and hygiene products. For
3126	3126	21 purposes of this Section, "grooming and hygiene products"
3127	3127	22 includes, but is not limited to, soaps and cleaning solutions,
3128	3128	23 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3129	3129	24 lotions and screens, unless those products are available by
3130	3130	25 prescription only, regardless of whether the products meet the
3131	3131	26 definition of "over-the-counter-drugs". For the purposes of
3132	3132
3133	3133
3134	3134
3135	3135
3136	3136
3137	3137	HB5577 - 86 - LRB103 38816 HLH 68953 b
3138	3138
3139	3139
3140	3140	HB5577- 87 -LRB103 38816 HLH 68953 b HB5577 - 87 - LRB103 38816 HLH 68953 b
3141	3141	HB5577 - 87 - LRB103 38816 HLH 68953 b
3142	3142	1 this paragraph, "over-the-counter-drug" means a drug for human
3143	3143	2 use that contains a label that identifies the product as a drug
3144	3144	3 as required by 21 CFR 201.66. The "over-the-counter-drug"
3145	3145	4 label includes:
3146	3146	5 (A) a "Drug Facts" panel; or
3147	3147	6 (B) a statement of the "active ingredient(s)" with a
3148	3148	7 list of those ingredients contained in the compound,
3149	3149	8 substance or preparation.
3150	3150	9 Beginning on January 1, 2014 (the effective date of Public
3151	3151	10 Act 98-122), "prescription and nonprescription medicines and
3152	3152	11 drugs" includes medical cannabis purchased from a registered
3153	3153	12 dispensing organization under the Compassionate Use of Medical
3154	3154	13 Cannabis Program Act.
3155	3155	14 As used in this Section, "adult use cannabis" means
3156	3156	15 cannabis subject to tax under the Cannabis Cultivation
3157	3157	16 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3158	3158	17 and does not include cannabis subject to tax under the
3159	3159	18 Compassionate Use of Medical Cannabis Program Act.
3160	3160	19 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
3161	3161	20 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
3162	3162	21 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
3163	3163	22 103-154, eff. 6-30-23.)
3164	3164	23 Section 20. The Retailers' Occupation Tax Act is amended
3165	3165	24 by changing Sections 2-5 and 2-10 as follows:
3166	3166
3167	3167
3168	3168
3169	3169
3170	3170
3171	3171	HB5577 - 87 - LRB103 38816 HLH 68953 b
3172	3172
3173	3173
3174	3174	HB5577- 88 -LRB103 38816 HLH 68953 b HB5577 - 88 - LRB103 38816 HLH 68953 b
3175	3175	HB5577 - 88 - LRB103 38816 HLH 68953 b
3176	3176	1 (35 ILCS 120/2-5)
3177	3177	2 Sec. 2-5. Exemptions. Gross receipts from proceeds from
3178	3178	3 the sale of the following tangible personal property are
3179	3179	4 exempt from the tax imposed by this Act:
3180	3180	5 (1) Farm chemicals.
3181	3181	6 (2) Farm machinery and equipment, both new and used,
3182	3182	7 including that manufactured on special order, certified by
3183	3183	8 the purchaser to be used primarily for production
3184	3184	9 agriculture or State or federal agricultural programs,
3185	3185	10 including individual replacement parts for the machinery
3186	3186	11 and equipment, including machinery and equipment purchased
3187	3187	12 for lease, and including implements of husbandry defined
3188	3188	13 in Section 1-130 of the Illinois Vehicle Code, farm
3189	3189	14 machinery and agricultural chemical and fertilizer
3190	3190	15 spreaders, and nurse wagons required to be registered
3191	3191	16 under Section 3-809 of the Illinois Vehicle Code, but
3192	3192	17 excluding other motor vehicles required to be registered
3193	3193	18 under the Illinois Vehicle Code. Horticultural polyhouses
3194	3194	19 or hoop houses used for propagating, growing, or
3195	3195	20 overwintering plants shall be considered farm machinery
3196	3196	21 and equipment under this item (2). Agricultural chemical
3197	3197	22 tender tanks and dry boxes shall include units sold
3198	3198	23 separately from a motor vehicle required to be licensed
3199	3199	24 and units sold mounted on a motor vehicle required to be
3200	3200	25 licensed, if the selling price of the tender is separately
3201	3201	26 stated.
3202	3202
3203	3203
3204	3204
3205	3205
3206	3206
3207	3207	HB5577 - 88 - LRB103 38816 HLH 68953 b
3208	3208
3209	3209
3210	3210	HB5577- 89 -LRB103 38816 HLH 68953 b HB5577 - 89 - LRB103 38816 HLH 68953 b
3211	3211	HB5577 - 89 - LRB103 38816 HLH 68953 b
3212	3212	1 Farm machinery and equipment shall include precision
3213	3213	2 farming equipment that is installed or purchased to be
3214	3214	3 installed on farm machinery and equipment including, but
3215	3215	4 not limited to, tractors, harvesters, sprayers, planters,
3216	3216	5 seeders, or spreaders. Precision farming equipment
3217	3217	6 includes, but is not limited to, soil testing sensors,
3218	3218	7 computers, monitors, software, global positioning and
3219	3219	8 mapping systems, and other such equipment.
3220	3220	9 Farm machinery and equipment also includes computers,
3221	3221	10 sensors, software, and related equipment used primarily in
3222	3222	11 the computer-assisted operation of production agriculture
3223	3223	12 facilities, equipment, and activities such as, but not
3224	3224	13 limited to, the collection, monitoring, and correlation of
3225	3225	14 animal and crop data for the purpose of formulating animal
3226	3226	15 diets and agricultural chemicals.
3227	3227	16 Beginning on January 1, 2024, farm machinery and
3228	3228	17 equipment also includes electrical power generation
3229	3229	18 equipment used primarily for production agriculture.
3230	3230	19 This item (2) is exempt from the provisions of Section
3231	3231	20 2-70.
3232	3232	21 (3) Until July 1, 2003, distillation machinery and
3233	3233	22 equipment, sold as a unit or kit, assembled or installed
3234	3234	23 by the retailer, certified by the user to be used only for
3235	3235	24 the production of ethyl alcohol that will be used for
3236	3236	25 consumption as motor fuel or as a component of motor fuel
3237	3237	26 for the personal use of the user, and not subject to sale
3238	3238
3239	3239
3240	3240
3241	3241
3242	3242
3243	3243	HB5577 - 89 - LRB103 38816 HLH 68953 b
3244	3244
3245	3245
3246	3246	HB5577- 90 -LRB103 38816 HLH 68953 b HB5577 - 90 - LRB103 38816 HLH 68953 b
3247	3247	HB5577 - 90 - LRB103 38816 HLH 68953 b
3248	3248	1 or resale.
3249	3249	2 (4) Until July 1, 2003 and beginning again September
3250	3250	3 1, 2004 through August 30, 2014, graphic arts machinery
3251	3251	4 and equipment, including repair and replacement parts,
3252	3252	5 both new and used, and including that manufactured on
3253	3253	6 special order or purchased for lease, certified by the
3254	3254	7 purchaser to be used primarily for graphic arts
3255	3255	8 production. Equipment includes chemicals or chemicals
3256	3256	9 acting as catalysts but only if the chemicals or chemicals
3257	3257	10 acting as catalysts effect a direct and immediate change
3258	3258	11 upon a graphic arts product. Beginning on July 1, 2017,
3259	3259	12 graphic arts machinery and equipment is included in the
3260	3260	13 manufacturing and assembling machinery and equipment
3261	3261	14 exemption under paragraph (14).
3262	3262	15 (5) A motor vehicle that is used for automobile
3263	3263	16 renting, as defined in the Automobile Renting Occupation
3264	3264	17 and Use Tax Act. This paragraph is exempt from the
3265	3265	18 provisions of Section 2-70.
3266	3266	19 (6) Personal property sold by a teacher-sponsored
3267	3267	20 student organization affiliated with an elementary or
3268	3268	21 secondary school located in Illinois.
3269	3269	22 (7) Until July 1, 2003, proceeds of that portion of
3270	3270	23 the selling price of a passenger car the sale of which is
3271	3271	24 subject to the Replacement Vehicle Tax.
3272	3272	25 (8) Personal property sold to an Illinois county fair
3273	3273	26 association for use in conducting, operating, or promoting
3274	3274
3275	3275
3276	3276
3277	3277
3278	3278
3279	3279	HB5577 - 90 - LRB103 38816 HLH 68953 b
3280	3280
3281	3281
3282	3282	HB5577- 91 -LRB103 38816 HLH 68953 b HB5577 - 91 - LRB103 38816 HLH 68953 b
3283	3283	HB5577 - 91 - LRB103 38816 HLH 68953 b
3284	3284	1 the county fair.
3285	3285	2 (9) Personal property sold to a not-for-profit arts or
3286	3286	3 cultural organization that establishes, by proof required
3287	3287	4 by the Department by rule, that it has received an
3288	3288	5 exemption under Section 501(c)(3) of the Internal Revenue
3289	3289	6 Code and that is organized and operated primarily for the
3290	3290	7 presentation or support of arts or cultural programming,
3291	3291	8 activities, or services. These organizations include, but
3292	3292	9 are not limited to, music and dramatic arts organizations
3293	3293	10 such as symphony orchestras and theatrical groups, arts
3294	3294	11 and cultural service organizations, local arts councils,
3295	3295	12 visual arts organizations, and media arts organizations.
3296	3296	13 On and after July 1, 2001 (the effective date of Public Act
3297	3297	14 92-35), however, an entity otherwise eligible for this
3298	3298	15 exemption shall not make tax-free purchases unless it has
3299	3299	16 an active identification number issued by the Department.
3300	3300	17 (10) Personal property sold by a corporation, society,
3301	3301	18 association, foundation, institution, or organization,
3302	3302	19 other than a limited liability company, that is organized
3303	3303	20 and operated as a not-for-profit service enterprise for
3304	3304	21 the benefit of persons 65 years of age or older if the
3305	3305	22 personal property was not purchased by the enterprise for
3306	3306	23 the purpose of resale by the enterprise.
3307	3307	24 (11) Except as otherwise provided in this Section,
3308	3308	25 personal property sold to a governmental body, to a
3309	3309	26 corporation, society, association, foundation, or
3310	3310
3311	3311
3312	3312
3313	3313
3314	3314
3315	3315	HB5577 - 91 - LRB103 38816 HLH 68953 b
3316	3316
3317	3317
3318	3318	HB5577- 92 -LRB103 38816 HLH 68953 b HB5577 - 92 - LRB103 38816 HLH 68953 b
3319	3319	HB5577 - 92 - LRB103 38816 HLH 68953 b
3320	3320	1 institution organized and operated exclusively for
3321	3321	2 charitable, religious, or educational purposes, or to a
3322	3322	3 not-for-profit corporation, society, association,
3323	3323	4 foundation, institution, or organization that has no
3324	3324	5 compensated officers or employees and that is organized
3325	3325	6 and operated primarily for the recreation of persons 55
3326	3326	7 years of age or older. A limited liability company may
3327	3327	8 qualify for the exemption under this paragraph only if the
3328	3328	9 limited liability company is organized and operated
3329	3329	10 exclusively for educational purposes. On and after July 1,
3330	3330	11 1987, however, no entity otherwise eligible for this
3331	3331	12 exemption shall make tax-free purchases unless it has an
3332	3332	13 active identification number issued by the Department.
3333	3333	14 (12) (Blank).
3334	3334	15 (12-5) On and after July 1, 2003 and through June 30,
3335	3335	16 2004, motor vehicles of the second division with a gross
3336	3336	17 vehicle weight in excess of 8,000 pounds that are subject
3337	3337	18 to the commercial distribution fee imposed under Section
3338	3338	19 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3339	3339	20 2004 and through June 30, 2005, the use in this State of
3340	3340	21 motor vehicles of the second division: (i) with a gross
3341	3341	22 vehicle weight rating in excess of 8,000 pounds; (ii) that
3342	3342	23 are subject to the commercial distribution fee imposed
3343	3343	24 under Section 3-815.1 of the Illinois Vehicle Code; and
3344	3344	25 (iii) that are primarily used for commercial purposes.
3345	3345	26 Through June 30, 2005, this exemption applies to repair
3346	3346
3347	3347
3348	3348
3349	3349
3350	3350
3351	3351	HB5577 - 92 - LRB103 38816 HLH 68953 b
3352	3352
3353	3353
3354	3354	HB5577- 93 -LRB103 38816 HLH 68953 b HB5577 - 93 - LRB103 38816 HLH 68953 b
3355	3355	HB5577 - 93 - LRB103 38816 HLH 68953 b
3356	3356	1 and replacement parts added after the initial purchase of
3357	3357	2 such a motor vehicle if that motor vehicle is used in a
3358	3358	3 manner that would qualify for the rolling stock exemption
3359	3359	4 otherwise provided for in this Act. For purposes of this
3360	3360	5 paragraph, "used for commercial purposes" means the
3361	3361	6 transportation of persons or property in furtherance of
3362	3362	7 any commercial or industrial enterprise whether for-hire
3363	3363	8 or not.
3364	3364	9 (13) Proceeds from sales to owners, lessors, or
3365	3365	10 shippers of tangible personal property that is utilized by
3366	3366	11 interstate carriers for hire for use as rolling stock
3367	3367	12 moving in interstate commerce and equipment operated by a
3368	3368	13 telecommunications provider, licensed as a common carrier
3369	3369	14 by the Federal Communications Commission, which is
3370	3370	15 permanently installed in or affixed to aircraft moving in
3371	3371	16 interstate commerce.
3372	3372	17 (14) Machinery and equipment that will be used by the
3373	3373	18 purchaser, or a lessee of the purchaser, primarily in the
3374	3374	19 process of manufacturing or assembling tangible personal
3375	3375	20 property for wholesale or retail sale or lease, whether
3376	3376	21 the sale or lease is made directly by the manufacturer or
3377	3377	22 by some other person, whether the materials used in the
3378	3378	23 process are owned by the manufacturer or some other
3379	3379	24 person, or whether the sale or lease is made apart from or
3380	3380	25 as an incident to the seller's engaging in the service
3381	3381	26 occupation of producing machines, tools, dies, jigs,
3382	3382
3383	3383
3384	3384
3385	3385
3386	3386
3387	3387	HB5577 - 93 - LRB103 38816 HLH 68953 b
3388	3388
3389	3389
3390	3390	HB5577- 94 -LRB103 38816 HLH 68953 b HB5577 - 94 - LRB103 38816 HLH 68953 b
3391	3391	HB5577 - 94 - LRB103 38816 HLH 68953 b
3392	3392	1 patterns, gauges, or other similar items of no commercial
3393	3393	2 value on special order for a particular purchaser. The
3394	3394	3 exemption provided by this paragraph (14) does not include
3395	3395	4 machinery and equipment used in (i) the generation of
3396	3396	5 electricity for wholesale or retail sale; (ii) the
3397	3397	6 generation or treatment of natural or artificial gas for
3398	3398	7 wholesale or retail sale that is delivered to customers
3399	3399	8 through pipes, pipelines, or mains; or (iii) the treatment
3400	3400	9 of water for wholesale or retail sale that is delivered to
3401	3401	10 customers through pipes, pipelines, or mains. The
3402	3402	11 provisions of Public Act 98-583 are declaratory of
3403	3403	12 existing law as to the meaning and scope of this
3404	3404	13 exemption. Beginning on July 1, 2017, the exemption
3405	3405	14 provided by this paragraph (14) includes, but is not
3406	3406	15 limited to, graphic arts machinery and equipment, as
3407	3407	16 defined in paragraph (4) of this Section.
3408	3408	17 (15) Proceeds of mandatory service charges separately
3409	3409	18 stated on customers' bills for purchase and consumption of
3410	3410	19 food and beverages, to the extent that the proceeds of the
3411	3411	20 service charge are in fact turned over as tips or as a
3412	3412	21 substitute for tips to the employees who participate
3413	3413	22 directly in preparing, serving, hosting or cleaning up the
3414	3414	23 food or beverage function with respect to which the
3415	3415	24 service charge is imposed.
3416	3416	25 (16) Tangible personal property sold to a purchaser if
3417	3417	26 the purchaser is exempt from use tax by operation of
3418	3418
3419	3419
3420	3420
3421	3421
3422	3422
3423	3423	HB5577 - 94 - LRB103 38816 HLH 68953 b
3424	3424
3425	3425
3426	3426	HB5577- 95 -LRB103 38816 HLH 68953 b HB5577 - 95 - LRB103 38816 HLH 68953 b
3427	3427	HB5577 - 95 - LRB103 38816 HLH 68953 b
3428	3428	1 federal law. This paragraph is exempt from the provisions
3429	3429	2 of Section 2-70.
3430	3430	3 (17) Tangible personal property sold to a common
3431	3431	4 carrier by rail or motor that receives the physical
3432	3432	5 possession of the property in Illinois and that transports
3433	3433	6 the property, or shares with another common carrier in the
3434	3434	7 transportation of the property, out of Illinois on a
3435	3435	8 standard uniform bill of lading showing the seller of the
3436	3436	9 property as the shipper or consignor of the property to a
3437	3437	10 destination outside Illinois, for use outside Illinois.
3438	3438	11 (18) Legal tender, currency, medallions, or gold or
3439	3439	12 silver coinage issued by the State of Illinois, the
3440	3440	13 government of the United States of America, or the
3441	3441	14 government of any foreign country, and bullion.
3442	3442	15 (19) Until July 1, 2003, oil field exploration,
3443	3443	16 drilling, and production equipment, including (i) rigs and
3444	3444	17 parts of rigs, rotary rigs, cable tool rigs, and workover
3445	3445	18 rigs, (ii) pipe and tubular goods, including casing and
3446	3446	19 drill strings, (iii) pumps and pump-jack units, (iv)
3447	3447	20 storage tanks and flow lines, (v) any individual
3448	3448	21 replacement part for oil field exploration, drilling, and
3449	3449	22 production equipment, and (vi) machinery and equipment
3450	3450	23 purchased for lease; but excluding motor vehicles required
3451	3451	24 to be registered under the Illinois Vehicle Code.
3452	3452	25 (20) Photoprocessing machinery and equipment,
3453	3453	26 including repair and replacement parts, both new and used,
3454	3454
3455	3455
3456	3456
3457	3457
3458	3458
3459	3459	HB5577 - 95 - LRB103 38816 HLH 68953 b
3460	3460
3461	3461
3462	3462	HB5577- 96 -LRB103 38816 HLH 68953 b HB5577 - 96 - LRB103 38816 HLH 68953 b
3463	3463	HB5577 - 96 - LRB103 38816 HLH 68953 b
3464	3464	1 including that manufactured on special order, certified by
3465	3465	2 the purchaser to be used primarily for photoprocessing,
3466	3466	3 and including photoprocessing machinery and equipment
3467	3467	4 purchased for lease.
3468	3468	5 (21) Until July 1, 2028, coal and aggregate
3469	3469	6 exploration, mining, off-highway hauling, processing,
3470	3470	7 maintenance, and reclamation equipment, including
3471	3471	8 replacement parts and equipment, and including equipment
3472	3472	9 purchased for lease, but excluding motor vehicles required
3473	3473	10 to be registered under the Illinois Vehicle Code. The
3474	3474	11 changes made to this Section by Public Act 97-767 apply on
3475	3475	12 and after July 1, 2003, but no claim for credit or refund
3476	3476	13 is allowed on or after August 16, 2013 (the effective date
3477	3477	14 of Public Act 98-456) for such taxes paid during the
3478	3478	15 period beginning July 1, 2003 and ending on August 16,
3479	3479	16 2013 (the effective date of Public Act 98-456).
3480	3480	17 (22) Until June 30, 2013, fuel and petroleum products
3481	3481	18 sold to or used by an air carrier, certified by the carrier
3482	3482	19 to be used for consumption, shipment, or storage in the
3483	3483	20 conduct of its business as an air common carrier, for a
3484	3484	21 flight destined for or returning from a location or
3485	3485	22 locations outside the United States without regard to
3486	3486	23 previous or subsequent domestic stopovers.
3487	3487	24 Beginning July 1, 2013, fuel and petroleum products
3488	3488	25 sold to or used by an air carrier, certified by the carrier
3489	3489	26 to be used for consumption, shipment, or storage in the
3490	3490
3491	3491
3492	3492
3493	3493
3494	3494
3495	3495	HB5577 - 96 - LRB103 38816 HLH 68953 b
3496	3496
3497	3497
3498	3498	HB5577- 97 -LRB103 38816 HLH 68953 b HB5577 - 97 - LRB103 38816 HLH 68953 b
3499	3499	HB5577 - 97 - LRB103 38816 HLH 68953 b
3500	3500	1 conduct of its business as an air common carrier, for a
3501	3501	2 flight that (i) is engaged in foreign trade or is engaged
3502	3502	3 in trade between the United States and any of its
3503	3503	4 possessions and (ii) transports at least one individual or
3504	3504	5 package for hire from the city of origination to the city
3505	3505	6 of final destination on the same aircraft, without regard
3506	3506	7 to a change in the flight number of that aircraft.
3507	3507	8 (23) A transaction in which the purchase order is
3508	3508	9 received by a florist who is located outside Illinois, but
3509	3509	10 who has a florist located in Illinois deliver the property
3510	3510	11 to the purchaser or the purchaser's donee in Illinois.
3511	3511	12 (24) Fuel consumed or used in the operation of ships,
3512	3512	13 barges, or vessels that are used primarily in or for the
3513	3513	14 transportation of property or the conveyance of persons
3514	3514	15 for hire on rivers bordering on this State if the fuel is
3515	3515	16 delivered by the seller to the purchaser's barge, ship, or
3516	3516	17 vessel while it is afloat upon that bordering river.
3517	3517	18 (25) Except as provided in item (25-5) of this
3518	3518	19 Section, a motor vehicle sold in this State to a
3519	3519	20 nonresident even though the motor vehicle is delivered to
3520	3520	21 the nonresident in this State, if the motor vehicle is not
3521	3521	22 to be titled in this State, and if a drive-away permit is
3522	3522	23 issued to the motor vehicle as provided in Section 3-603
3523	3523	24 of the Illinois Vehicle Code or if the nonresident
3524	3524	25 purchaser has vehicle registration plates to transfer to
3525	3525	26 the motor vehicle upon returning to his or her home state.
3526	3526
3527	3527
3528	3528
3529	3529
3530	3530
3531	3531	HB5577 - 97 - LRB103 38816 HLH 68953 b
3532	3532
3533	3533
3534	3534	HB5577- 98 -LRB103 38816 HLH 68953 b HB5577 - 98 - LRB103 38816 HLH 68953 b
3535	3535	HB5577 - 98 - LRB103 38816 HLH 68953 b
3536	3536	1 The issuance of the drive-away permit or having the
3537	3537	2 out-of-state registration plates to be transferred is
3538	3538	3 prima facie evidence that the motor vehicle will not be
3539	3539	4 titled in this State.
3540	3540	5 (25-5) The exemption under item (25) does not apply if
3541	3541	6 the state in which the motor vehicle will be titled does
3542	3542	7 not allow a reciprocal exemption for a motor vehicle sold
3543	3543	8 and delivered in that state to an Illinois resident but
3544	3544	9 titled in Illinois. The tax collected under this Act on
3545	3545	10 the sale of a motor vehicle in this State to a resident of
3546	3546	11 another state that does not allow a reciprocal exemption
3547	3547	12 shall be imposed at a rate equal to the state's rate of tax
3548	3548	13 on taxable property in the state in which the purchaser is
3549	3549	14 a resident, except that the tax shall not exceed the tax
3550	3550	15 that would otherwise be imposed under this Act. At the
3551	3551	16 time of the sale, the purchaser shall execute a statement,
3552	3552	17 signed under penalty of perjury, of his or her intent to
3553	3553	18 title the vehicle in the state in which the purchaser is a
3554	3554	19 resident within 30 days after the sale and of the fact of
3555	3555	20 the payment to the State of Illinois of tax in an amount
3556	3556	21 equivalent to the state's rate of tax on taxable property
3557	3557	22 in his or her state of residence and shall submit the
3558	3558	23 statement to the appropriate tax collection agency in his
3559	3559	24 or her state of residence. In addition, the retailer must
3560	3560	25 retain a signed copy of the statement in his or her
3561	3561	26 records. Nothing in this item shall be construed to
3562	3562
3563	3563
3564	3564
3565	3565
3566	3566
3567	3567	HB5577 - 98 - LRB103 38816 HLH 68953 b
3568	3568
3569	3569
3570	3570	HB5577- 99 -LRB103 38816 HLH 68953 b HB5577 - 99 - LRB103 38816 HLH 68953 b
3571	3571	HB5577 - 99 - LRB103 38816 HLH 68953 b
3572	3572	1 require the removal of the vehicle from this state
3573	3573	2 following the filing of an intent to title the vehicle in
3574	3574	3 the purchaser's state of residence if the purchaser titles
3575	3575	4 the vehicle in his or her state of residence within 30 days
3576	3576	5 after the date of sale. The tax collected under this Act in
3577	3577	6 accordance with this item (25-5) shall be proportionately
3578	3578	7 distributed as if the tax were collected at the 6.25%
3579	3579	8 general rate imposed under this Act.
3580	3580	9 (25-7) Beginning on July 1, 2007, no tax is imposed
3581	3581	10 under this Act on the sale of an aircraft, as defined in
3582	3582	11 Section 3 of the Illinois Aeronautics Act, if all of the
3583	3583	12 following conditions are met:
3584	3584	13 (1) the aircraft leaves this State within 15 days
3585	3585	14 after the later of either the issuance of the final
3586	3586	15 billing for the sale of the aircraft, or the
3587	3587	16 authorized approval for return to service, completion
3588	3588	17 of the maintenance record entry, and completion of the
3589	3589	18 test flight and ground test for inspection, as
3590	3590	19 required by 14 CFR 91.407;
3591	3591	20 (2) the aircraft is not based or registered in
3592	3592	21 this State after the sale of the aircraft; and
3593	3593	22 (3) the seller retains in his or her books and
3594	3594	23 records and provides to the Department a signed and
3595	3595	24 dated certification from the purchaser, on a form
3596	3596	25 prescribed by the Department, certifying that the
3597	3597	26 requirements of this item (25-7) are met. The
3598	3598
3599	3599
3600	3600
3601	3601
3602	3602
3603	3603	HB5577 - 99 - LRB103 38816 HLH 68953 b
3604	3604
3605	3605
3606	3606	HB5577- 100 -LRB103 38816 HLH 68953 b HB5577 - 100 - LRB103 38816 HLH 68953 b
3607	3607	HB5577 - 100 - LRB103 38816 HLH 68953 b
3608	3608	1 certificate must also include the name and address of
3609	3609	2 the purchaser, the address of the location where the
3610	3610	3 aircraft is to be titled or registered, the address of
3611	3611	4 the primary physical location of the aircraft, and
3612	3612	5 other information that the Department may reasonably
3613	3613	6 require.
3614	3614	7 For purposes of this item (25-7):
3615	3615	8 "Based in this State" means hangared, stored, or
3616	3616	9 otherwise used, excluding post-sale customizations as
3617	3617	10 defined in this Section, for 10 or more days in each
3618	3618	11 12-month period immediately following the date of the sale
3619	3619	12 of the aircraft.
3620	3620	13 "Registered in this State" means an aircraft
3621	3621	14 registered with the Department of Transportation,
3622	3622	15 Aeronautics Division, or titled or registered with the
3623	3623	16 Federal Aviation Administration to an address located in
3624	3624	17 this State.
3625	3625	18 This paragraph (25-7) is exempt from the provisions of
3626	3626	19 Section 2-70.
3627	3627	20 (26) Semen used for artificial insemination of
3628	3628	21 livestock for direct agricultural production.
3629	3629	22 (27) Horses, or interests in horses, registered with
3630	3630	23 and meeting the requirements of any of the Arabian Horse
3631	3631	24 Club Registry of America, Appaloosa Horse Club, American
3632	3632	25 Quarter Horse Association, United States Trotting
3633	3633	26 Association, or Jockey Club, as appropriate, used for
3634	3634
3635	3635
3636	3636
3637	3637
3638	3638
3639	3639	HB5577 - 100 - LRB103 38816 HLH 68953 b
3640	3640
3641	3641
3642	3642	HB5577- 101 -LRB103 38816 HLH 68953 b HB5577 - 101 - LRB103 38816 HLH 68953 b
3643	3643	HB5577 - 101 - LRB103 38816 HLH 68953 b
3644	3644	1 purposes of breeding or racing for prizes. This item (27)
3645	3645	2 is exempt from the provisions of Section 2-70, and the
3646	3646	3 exemption provided for under this item (27) applies for
3647	3647	4 all periods beginning May 30, 1995, but no claim for
3648	3648	5 credit or refund is allowed on or after January 1, 2008
3649	3649	6 (the effective date of Public Act 95-88) for such taxes
3650	3650	7 paid during the period beginning May 30, 2000 and ending
3651	3651	8 on January 1, 2008 (the effective date of Public Act
3652	3652	9 95-88).
3653	3653	10 (28) Computers and communications equipment utilized
3654	3654	11 for any hospital purpose and equipment used in the
3655	3655	12 diagnosis, analysis, or treatment of hospital patients
3656	3656	13 sold to a lessor who leases the equipment, under a lease of
3657	3657	14 one year or longer executed or in effect at the time of the
3658	3658	15 purchase, to a hospital that has been issued an active tax
3659	3659	16 exemption identification number by the Department under
3660	3660	17 Section 1g of this Act.
3661	3661	18 (29) Personal property sold to a lessor who leases the
3662	3662	19 property, under a lease of one year or longer executed or
3663	3663	20 in effect at the time of the purchase, to a governmental
3664	3664	21 body that has been issued an active tax exemption
3665	3665	22 identification number by the Department under Section 1g
3666	3666	23 of this Act.
3667	3667	24 (30) Beginning with taxable years ending on or after
3668	3668	25 December 31, 1995 and ending with taxable years ending on
3669	3669	26 or before December 31, 2004, personal property that is
3670	3670
3671	3671
3672	3672
3673	3673
3674	3674
3675	3675	HB5577 - 101 - LRB103 38816 HLH 68953 b
3676	3676
3677	3677
3678	3678	HB5577- 102 -LRB103 38816 HLH 68953 b HB5577 - 102 - LRB103 38816 HLH 68953 b
3679	3679	HB5577 - 102 - LRB103 38816 HLH 68953 b
3680	3680	1 donated for disaster relief to be used in a State or
3681	3681	2 federally declared disaster area in Illinois or bordering
3682	3682	3 Illinois by a manufacturer or retailer that is registered
3683	3683	4 in this State to a corporation, society, association,
3684	3684	5 foundation, or institution that has been issued a sales
3685	3685	6 tax exemption identification number by the Department that
3686	3686	7 assists victims of the disaster who reside within the
3687	3687	8 declared disaster area.
3688	3688	9 (31) Beginning with taxable years ending on or after
3689	3689	10 December 31, 1995 and ending with taxable years ending on
3690	3690	11 or before December 31, 2004, personal property that is
3691	3691	12 used in the performance of infrastructure repairs in this
3692	3692	13 State, including, but not limited to, municipal roads and
3693	3693	14 streets, access roads, bridges, sidewalks, waste disposal
3694	3694	15 systems, water and sewer line extensions, water
3695	3695	16 distribution and purification facilities, storm water
3696	3696	17 drainage and retention facilities, and sewage treatment
3697	3697	18 facilities, resulting from a State or federally declared
3698	3698	19 disaster in Illinois or bordering Illinois when such
3699	3699	20 repairs are initiated on facilities located in the
3700	3700	21 declared disaster area within 6 months after the disaster.
3701	3701	22 (32) Beginning July 1, 1999, game or game birds sold
3702	3702	23 at a "game breeding and hunting preserve area" as that
3703	3703	24 term is used in the Wildlife Code. This paragraph is
3704	3704	25 exempt from the provisions of Section 2-70.
3705	3705	26 (33) A motor vehicle, as that term is defined in
3706	3706
3707	3707
3708	3708
3709	3709
3710	3710
3711	3711	HB5577 - 102 - LRB103 38816 HLH 68953 b
3712	3712
3713	3713
3714	3714	HB5577- 103 -LRB103 38816 HLH 68953 b HB5577 - 103 - LRB103 38816 HLH 68953 b
3715	3715	HB5577 - 103 - LRB103 38816 HLH 68953 b
3716	3716	1 Section 1-146 of the Illinois Vehicle Code, that is
3717	3717	2 donated to a corporation, limited liability company,
3718	3718	3 society, association, foundation, or institution that is
3719	3719	4 determined by the Department to be organized and operated
3720	3720	5 exclusively for educational purposes. For purposes of this
3721	3721	6 exemption, "a corporation, limited liability company,
3722	3722	7 society, association, foundation, or institution organized
3723	3723	8 and operated exclusively for educational purposes" means
3724	3724	9 all tax-supported public schools, private schools that
3725	3725	10 offer systematic instruction in useful branches of
3726	3726	11 learning by methods common to public schools and that
3727	3727	12 compare favorably in their scope and intensity with the
3728	3728	13 course of study presented in tax-supported schools, and
3729	3729	14 vocational or technical schools or institutes organized
3730	3730	15 and operated exclusively to provide a course of study of
3731	3731	16 not less than 6 weeks duration and designed to prepare
3732	3732	17 individuals to follow a trade or to pursue a manual,
3733	3733	18 technical, mechanical, industrial, business, or commercial
3734	3734	19 occupation.
3735	3735	20 (34) Beginning January 1, 2000, personal property,
3736	3736	21 including food, purchased through fundraising events for
3737	3737	22 the benefit of a public or private elementary or secondary
3738	3738	23 school, a group of those schools, or one or more school
3739	3739	24 districts if the events are sponsored by an entity
3740	3740	25 recognized by the school district that consists primarily
3741	3741	26 of volunteers and includes parents and teachers of the
3742	3742
3743	3743
3744	3744
3745	3745
3746	3746
3747	3747	HB5577 - 103 - LRB103 38816 HLH 68953 b
3748	3748
3749	3749
3750	3750	HB5577- 104 -LRB103 38816 HLH 68953 b HB5577 - 104 - LRB103 38816 HLH 68953 b
3751	3751	HB5577 - 104 - LRB103 38816 HLH 68953 b
3752	3752	1 school children. This paragraph does not apply to
3753	3753	2 fundraising events (i) for the benefit of private home
3754	3754	3 instruction or (ii) for which the fundraising entity
3755	3755	4 purchases the personal property sold at the events from
3756	3756	5 another individual or entity that sold the property for
3757	3757	6 the purpose of resale by the fundraising entity and that
3758	3758	7 profits from the sale to the fundraising entity. This
3759	3759	8 paragraph is exempt from the provisions of Section 2-70.
3760	3760	9 (35) Beginning January 1, 2000 and through December
3761	3761	10 31, 2001, new or used automatic vending machines that
3762	3762	11 prepare and serve hot food and beverages, including
3763	3763	12 coffee, soup, and other items, and replacement parts for
3764	3764	13 these machines. Beginning January 1, 2002 and through June
3765	3765	14 30, 2003, machines and parts for machines used in
3766	3766	15 commercial, coin-operated amusement and vending business
3767	3767	16 if a use or occupation tax is paid on the gross receipts
3768	3768	17 derived from the use of the commercial, coin-operated
3769	3769	18 amusement and vending machines. This paragraph is exempt
3770	3770	19 from the provisions of Section 2-70.
3771	3771	20 (35-5) Beginning August 23, 2001 and through June 30,
3772	3772	21 2016, food for human consumption that is to be consumed
3773	3773	22 off the premises where it is sold (other than alcoholic
3774	3774	23 beverages, soft drinks, and food that has been prepared
3775	3775	24 for immediate consumption) and prescription and
3776	3776	25 nonprescription medicines, drugs, medical appliances, and
3777	3777	26 insulin, urine testing materials, syringes, and needles
3778	3778
3779	3779
3780	3780
3781	3781
3782	3782
3783	3783	HB5577 - 104 - LRB103 38816 HLH 68953 b
3784	3784
3785	3785
3786	3786	HB5577- 105 -LRB103 38816 HLH 68953 b HB5577 - 105 - LRB103 38816 HLH 68953 b
3787	3787	HB5577 - 105 - LRB103 38816 HLH 68953 b
3788	3788	1 used by diabetics, for human use, when purchased for use
3789	3789	2 by a person receiving medical assistance under Article V
3790	3790	3 of the Illinois Public Aid Code who resides in a licensed
3791	3791	4 long-term care facility, as defined in the Nursing Home
3792	3792	5 Care Act, or a licensed facility as defined in the ID/DD
3793	3793	6 Community Care Act, the MC/DD Act, or the Specialized
3794	3794	7 Mental Health Rehabilitation Act of 2013.
3795	3795	8 (36) Beginning August 2, 2001, computers and
3796	3796	9 communications equipment utilized for any hospital purpose
3797	3797	10 and equipment used in the diagnosis, analysis, or
3798	3798	11 treatment of hospital patients sold to a lessor who leases
3799	3799	12 the equipment, under a lease of one year or longer
3800	3800	13 executed or in effect at the time of the purchase, to a
3801	3801	14 hospital that has been issued an active tax exemption
3802	3802	15 identification number by the Department under Section 1g
3803	3803	16 of this Act. This paragraph is exempt from the provisions
3804	3804	17 of Section 2-70.
3805	3805	18 (37) Beginning August 2, 2001, personal property sold
3806	3806	19 to a lessor who leases the property, under a lease of one
3807	3807	20 year or longer executed or in effect at the time of the
3808	3808	21 purchase, to a governmental body that has been issued an
3809	3809	22 active tax exemption identification number by the
3810	3810	23 Department under Section 1g of this Act. This paragraph is
3811	3811	24 exempt from the provisions of Section 2-70.
3812	3812	25 (38) Beginning on January 1, 2002 and through June 30,
3813	3813	26 2016, tangible personal property purchased from an
3814	3814
3815	3815
3816	3816
3817	3817
3818	3818
3819	3819	HB5577 - 105 - LRB103 38816 HLH 68953 b
3820	3820
3821	3821
3822	3822	HB5577- 106 -LRB103 38816 HLH 68953 b HB5577 - 106 - LRB103 38816 HLH 68953 b
3823	3823	HB5577 - 106 - LRB103 38816 HLH 68953 b
3824	3824	1 Illinois retailer by a taxpayer engaged in centralized
3825	3825	2 purchasing activities in Illinois who will, upon receipt
3826	3826	3 of the property in Illinois, temporarily store the
3827	3827	4 property in Illinois (i) for the purpose of subsequently
3828	3828	5 transporting it outside this State for use or consumption
3829	3829	6 thereafter solely outside this State or (ii) for the
3830	3830	7 purpose of being processed, fabricated, or manufactured
3831	3831	8 into, attached to, or incorporated into other tangible
3832	3832	9 personal property to be transported outside this State and
3833	3833	10 thereafter used or consumed solely outside this State. The
3834	3834	11 Director of Revenue shall, pursuant to rules adopted in
3835	3835	12 accordance with the Illinois Administrative Procedure Act,
3836	3836	13 issue a permit to any taxpayer in good standing with the
3837	3837	14 Department who is eligible for the exemption under this
3838	3838	15 paragraph (38). The permit issued under this paragraph
3839	3839	16 (38) shall authorize the holder, to the extent and in the
3840	3840	17 manner specified in the rules adopted under this Act, to
3841	3841	18 purchase tangible personal property from a retailer exempt
3842	3842	19 from the taxes imposed by this Act. Taxpayers shall
3843	3843	20 maintain all necessary books and records to substantiate
3844	3844	21 the use and consumption of all such tangible personal
3845	3845	22 property outside of the State of Illinois.
3846	3846	23 (39) Beginning January 1, 2008, tangible personal
3847	3847	24 property used in the construction or maintenance of a
3848	3848	25 community water supply, as defined under Section 3.145 of
3849	3849	26 the Environmental Protection Act, that is operated by a
3850	3850
3851	3851
3852	3852
3853	3853
3854	3854
3855	3855	HB5577 - 106 - LRB103 38816 HLH 68953 b
3856	3856
3857	3857
3858	3858	HB5577- 107 -LRB103 38816 HLH 68953 b HB5577 - 107 - LRB103 38816 HLH 68953 b
3859	3859	HB5577 - 107 - LRB103 38816 HLH 68953 b
3860	3860	1 not-for-profit corporation that holds a valid water supply
3861	3861	2 permit issued under Title IV of the Environmental
3862	3862	3 Protection Act. This paragraph is exempt from the
3863	3863	4 provisions of Section 2-70.
3864	3864	5 (40) Beginning January 1, 2010 and continuing through
3865	3865	6 December 31, 2029, materials, parts, equipment,
3866	3866	7 components, and furnishings incorporated into or upon an
3867	3867	8 aircraft as part of the modification, refurbishment,
3868	3868	9 completion, replacement, repair, or maintenance of the
3869	3869	10 aircraft. This exemption includes consumable supplies used
3870	3870	11 in the modification, refurbishment, completion,
3871	3871	12 replacement, repair, and maintenance of aircraft. However,
3872	3872	13 until January 1, 2024, this exemption excludes any
3873	3873	14 materials, parts, equipment, components, and consumable
3874	3874	15 supplies used in the modification, replacement, repair,
3875	3875	16 and maintenance of aircraft engines or power plants,
3876	3876	17 whether such engines or power plants are installed or
3877	3877	18 uninstalled upon any such aircraft. "Consumable supplies"
3878	3878	19 include, but are not limited to, adhesive, tape,
3879	3879	20 sandpaper, general purpose lubricants, cleaning solution,
3880	3880	21 latex gloves, and protective films.
3881	3881	22 Beginning January 1, 2010 and continuing through
3882	3882	23 December 31, 2023, this exemption applies only to the sale
3883	3883	24 of qualifying tangible personal property to persons who
3884	3884	25 modify, refurbish, complete, replace, or maintain an
3885	3885	26 aircraft and who (i) hold an Air Agency Certificate and
3886	3886
3887	3887
3888	3888
3889	3889
3890	3890
3891	3891	HB5577 - 107 - LRB103 38816 HLH 68953 b
3892	3892
3893	3893
3894	3894	HB5577- 108 -LRB103 38816 HLH 68953 b HB5577 - 108 - LRB103 38816 HLH 68953 b
3895	3895	HB5577 - 108 - LRB103 38816 HLH 68953 b
3896	3896	1 are empowered to operate an approved repair station by the
3897	3897	2 Federal Aviation Administration, (ii) have a Class IV
3898	3898	3 Rating, and (iii) conduct operations in accordance with
3899	3899	4 Part 145 of the Federal Aviation Regulations. The
3900	3900	5 exemption does not include aircraft operated by a
3901	3901	6 commercial air carrier providing scheduled passenger air
3902	3902	7 service pursuant to authority issued under Part 121 or
3903	3903	8 Part 129 of the Federal Aviation Regulations. From January
3904	3904	9 1, 2024 through December 31, 2029, this exemption applies
3905	3905	10 only to the use of qualifying tangible personal property
3906	3906	11 by: (A) persons who modify, refurbish, complete, repair,
3907	3907	12 replace, or maintain aircraft and who (i) hold an Air
3908	3908	13 Agency Certificate and are empowered to operate an
3909	3909	14 approved repair station by the Federal Aviation
3910	3910	15 Administration, (ii) have a Class IV Rating, and (iii)
3911	3911	16 conduct operations in accordance with Part 145 of the
3912	3912	17 Federal Aviation Regulations; and (B) persons who engage
3913	3913	18 in the modification, replacement, repair, and maintenance
3914	3914	19 of aircraft engines or power plants without regard to
3915	3915	20 whether or not those persons meet the qualifications of
3916	3916	21 item (A).
3917	3917	22 The changes made to this paragraph (40) by Public Act
3918	3918	23 98-534 are declarative of existing law. It is the intent
3919	3919	24 of the General Assembly that the exemption under this
3920	3920	25 paragraph (40) applies continuously from January 1, 2010
3921	3921	26 through December 31, 2024; however, no claim for credit or
3922	3922
3923	3923
3924	3924
3925	3925
3926	3926
3927	3927	HB5577 - 108 - LRB103 38816 HLH 68953 b
3928	3928
3929	3929
3930	3930	HB5577- 109 -LRB103 38816 HLH 68953 b HB5577 - 109 - LRB103 38816 HLH 68953 b
3931	3931	HB5577 - 109 - LRB103 38816 HLH 68953 b
3932	3932	1 refund is allowed for taxes paid as a result of the
3933	3933	2 disallowance of this exemption on or after January 1, 2015
3934	3934	3 and prior to February 5, 2020 (the effective date of
3935	3935	4 Public Act 101-629).
3936	3936	5 (41) Tangible personal property sold to a
3937	3937	6 public-facilities corporation, as described in Section
3938	3938	7 11-65-10 of the Illinois Municipal Code, for purposes of
3939	3939	8 constructing or furnishing a municipal convention hall,
3940	3940	9 but only if the legal title to the municipal convention
3941	3941	10 hall is transferred to the municipality without any
3942	3942	11 further consideration by or on behalf of the municipality
3943	3943	12 at the time of the completion of the municipal convention
3944	3944	13 hall or upon the retirement or redemption of any bonds or
3945	3945	14 other debt instruments issued by the public-facilities
3946	3946	15 corporation in connection with the development of the
3947	3947	16 municipal convention hall. This exemption includes
3948	3948	17 existing public-facilities corporations as provided in
3949	3949	18 Section 11-65-25 of the Illinois Municipal Code. This
3950	3950	19 paragraph is exempt from the provisions of Section 2-70.
3951	3951	20 (42) Beginning January 1, 2017 and through December
3952	3952	21 31, 2026, menstrual pads, tampons, and menstrual cups.
3953	3953	22 (43) Merchandise that is subject to the Rental
3954	3954	23 Purchase Agreement Occupation and Use Tax. The purchaser
3955	3955	24 must certify that the item is purchased to be rented
3956	3956	25 subject to a rental-purchase rental purchase agreement, as
3957	3957	26 defined in the Rental-Purchase Rental Purchase Agreement
3958	3958
3959	3959
3960	3960
3961	3961
3962	3962
3963	3963	HB5577 - 109 - LRB103 38816 HLH 68953 b
3964	3964
3965	3965
3966	3966	HB5577- 110 -LRB103 38816 HLH 68953 b HB5577 - 110 - LRB103 38816 HLH 68953 b
3967	3967	HB5577 - 110 - LRB103 38816 HLH 68953 b
3968	3968	1 Act, and provide proof of registration under the Rental
3969	3969	2 Purchase Agreement Occupation and Use Tax Act. This
3970	3970	3 paragraph is exempt from the provisions of Section 2-70.
3971	3971	4 (44) Qualified tangible personal property used in the
3972	3972	5 construction or operation of a data center that has been
3973	3973	6 granted a certificate of exemption by the Department of
3974	3974	7 Commerce and Economic Opportunity, whether that tangible
3975	3975	8 personal property is purchased by the owner, operator, or
3976	3976	9 tenant of the data center or by a contractor or
3977	3977	10 subcontractor of the owner, operator, or tenant. Data
3978	3978	11 centers that would have qualified for a certificate of
3979	3979	12 exemption prior to January 1, 2020 had Public Act 101-31
3980	3980	13 been in effect, may apply for and obtain an exemption for
3981	3981	14 subsequent purchases of computer equipment or enabling
3982	3982	15 software purchased or leased to upgrade, supplement, or
3983	3983	16 replace computer equipment or enabling software purchased
3984	3984	17 or leased in the original investment that would have
3985	3985	18 qualified.
3986	3986	19 The Department of Commerce and Economic Opportunity
3987	3987	20 shall grant a certificate of exemption under this item
3988	3988	21 (44) to qualified data centers as defined by Section
3989	3989	22 605-1025 of the Department of Commerce and Economic
3990	3990	23 Opportunity Law of the Civil Administrative Code of
3991	3991	24 Illinois.
3992	3992	25 For the purposes of this item (44):
3993	3993	26 "Data center" means a building or a series of
3994	3994
3995	3995
3996	3996
3997	3997
3998	3998
3999	3999	HB5577 - 110 - LRB103 38816 HLH 68953 b
4000	4000
4001	4001
4002	4002	HB5577- 111 -LRB103 38816 HLH 68953 b HB5577 - 111 - LRB103 38816 HLH 68953 b
4003	4003	HB5577 - 111 - LRB103 38816 HLH 68953 b
4004	4004	1 buildings rehabilitated or constructed to house
4005	4005	2 working servers in one physical location or multiple
4006	4006	3 sites within the State of Illinois.
4007	4007	4 "Qualified tangible personal property" means:
4008	4008	5 electrical systems and equipment; climate control and
4009	4009	6 chilling equipment and systems; mechanical systems and
4010	4010	7 equipment; monitoring and secure systems; emergency
4011	4011	8 generators; hardware; computers; servers; data storage
4012	4012	9 devices; network connectivity equipment; racks;
4013	4013	10 cabinets; telecommunications cabling infrastructure;
4014	4014	11 raised floor systems; peripheral components or
4015	4015	12 systems; software; mechanical, electrical, or plumbing
4016	4016	13 systems; battery systems; cooling systems and towers;
4017	4017	14 temperature control systems; other cabling; and other
4018	4018	15 data center infrastructure equipment and systems
4019	4019	16 necessary to operate qualified tangible personal
4020	4020	17 property, including fixtures; and component parts of
4021	4021	18 any of the foregoing, including installation,
4022	4022	19 maintenance, repair, refurbishment, and replacement of
4023	4023	20 qualified tangible personal property to generate,
4024	4024	21 transform, transmit, distribute, or manage electricity
4025	4025	22 necessary to operate qualified tangible personal
4026	4026	23 property; and all other tangible personal property
4027	4027	24 that is essential to the operations of a computer data
4028	4028	25 center. The term "qualified tangible personal
4029	4029	26 property" also includes building materials physically
4030	4030
4031	4031
4032	4032
4033	4033
4034	4034
4035	4035	HB5577 - 111 - LRB103 38816 HLH 68953 b
4036	4036
4037	4037
4038	4038	HB5577- 112 -LRB103 38816 HLH 68953 b HB5577 - 112 - LRB103 38816 HLH 68953 b
4039	4039	HB5577 - 112 - LRB103 38816 HLH 68953 b
4040	4040	1 incorporated into the qualifying data center. To
4041	4041	2 document the exemption allowed under this Section, the
4042	4042	3 retailer must obtain from the purchaser a copy of the
4043	4043	4 certificate of eligibility issued by the Department of
4044	4044	5 Commerce and Economic Opportunity.
4045	4045	6 This item (44) is exempt from the provisions of
4046	4046	7 Section 2-70.
4047	4047	8 (45) Beginning January 1, 2020 and through December
4048	4048	9 31, 2020, sales of tangible personal property made by a
4049	4049	10 marketplace seller over a marketplace for which tax is due
4050	4050	11 under this Act but for which use tax has been collected and
4051	4051	12 remitted to the Department by a marketplace facilitator
4052	4052	13 under Section 2d of the Use Tax Act are exempt from tax
4053	4053	14 under this Act. A marketplace seller claiming this
4054	4054	15 exemption shall maintain books and records demonstrating
4055	4055	16 that the use tax on such sales has been collected and
4056	4056	17 remitted by a marketplace facilitator. Marketplace sellers
4057	4057	18 that have properly remitted tax under this Act on such
4058	4058	19 sales may file a claim for credit as provided in Section 6
4059	4059	20 of this Act. No claim is allowed, however, for such taxes
4060	4060	21 for which a credit or refund has been issued to the
4061	4061	22 marketplace facilitator under the Use Tax Act, or for
4062	4062	23 which the marketplace facilitator has filed a claim for
4063	4063	24 credit or refund under the Use Tax Act.
4064	4064	25 (46) Beginning July 1, 2022, breast pumps, breast pump
4065	4065	26 collection and storage supplies, and breast pump kits.
4066	4066
4067	4067
4068	4068
4069	4069
4070	4070
4071	4071	HB5577 - 112 - LRB103 38816 HLH 68953 b
4072	4072
4073	4073
4074	4074	HB5577- 113 -LRB103 38816 HLH 68953 b HB5577 - 113 - LRB103 38816 HLH 68953 b
4075	4075	HB5577 - 113 - LRB103 38816 HLH 68953 b
4076	4076	1 This item (46) is exempt from the provisions of Section
4077	4077	2 2-70. As used in this item (46):
4078	4078	3 "Breast pump" means an electrically controlled or
4079	4079	4 manually controlled pump device designed or marketed to be
4080	4080	5 used to express milk from a human breast during lactation,
4081	4081	6 including the pump device and any battery, AC adapter, or
4082	4082	7 other power supply unit that is used to power the pump
4083	4083	8 device and is packaged and sold with the pump device at the
4084	4084	9 time of sale.
4085	4085	10 "Breast pump collection and storage supplies" means
4086	4086	11 items of tangible personal property designed or marketed
4087	4087	12 to be used in conjunction with a breast pump to collect
4088	4088	13 milk expressed from a human breast and to store collected
4089	4089	14 milk until it is ready for consumption.
4090	4090	15 "Breast pump collection and storage supplies"
4091	4091	16 includes, but is not limited to: breast shields and breast
4092	4092	17 shield connectors; breast pump tubes and tubing adapters;
4093	4093	18 breast pump valves and membranes; backflow protectors and
4094	4094	19 backflow protector adaptors; bottles and bottle caps
4095	4095	20 specific to the operation of the breast pump; and breast
4096	4096	21 milk storage bags.
4097	4097	22 "Breast pump collection and storage supplies" does not
4098	4098	23 include: (1) bottles and bottle caps not specific to the
4099	4099	24 operation of the breast pump; (2) breast pump travel bags
4100	4100	25 and other similar carrying accessories, including ice
4101	4101	26 packs, labels, and other similar products; (3) breast pump
4102	4102
4103	4103
4104	4104
4105	4105
4106	4106
4107	4107	HB5577 - 113 - LRB103 38816 HLH 68953 b
4108	4108
4109	4109
4110	4110	HB5577- 114 -LRB103 38816 HLH 68953 b HB5577 - 114 - LRB103 38816 HLH 68953 b
4111	4111	HB5577 - 114 - LRB103 38816 HLH 68953 b
4112	4112	1 cleaning supplies; (4) nursing bras, bra pads, breast
4113	4113	2 shells, and other similar products; and (5) creams,
4114	4114	3 ointments, and other similar products that relieve
4115	4115	4 breastfeeding-related symptoms or conditions of the
4116	4116	5 breasts or nipples, unless sold as part of a breast pump
4117	4117	6 kit that is pre-packaged by the breast pump manufacturer
4118	4118	7 or distributor.
4119	4119	8 "Breast pump kit" means a kit that: (1) contains no
4120	4120	9 more than a breast pump, breast pump collection and
4121	4121	10 storage supplies, a rechargeable battery for operating the
4122	4122	11 breast pump, a breastmilk cooler, bottle stands, ice
4123	4123	12 packs, and a breast pump carrying case; and (2) is
4124	4124	13 pre-packaged as a breast pump kit by the breast pump
4125	4125	14 manufacturer or distributor.
4126	4126	15 (47) Tangible personal property sold by or on behalf
4127	4127	16 of the State Treasurer pursuant to the Revised Uniform
4128	4128	17 Unclaimed Property Act. This item (47) is exempt from the
4129	4129	18 provisions of Section 2-70.
4130	4130	19 (48) Beginning on January 1, 2024, tangible personal
4131	4131	20 property purchased by an active duty member of the armed
4132	4132	21 forces of the United States who presents valid military
4133	4133	22 identification and purchases the property using a form of
4134	4134	23 payment where the federal government is the payor. The
4135	4135	24 member of the armed forces must complete, at the point of
4136	4136	25 sale, a form prescribed by the Department of Revenue
4137	4137	26 documenting that the transaction is eligible for the
4138	4138
4139	4139
4140	4140
4141	4141
4142	4142
4143	4143	HB5577 - 114 - LRB103 38816 HLH 68953 b
4144	4144
4145	4145
4146	4146	HB5577- 115 -LRB103 38816 HLH 68953 b HB5577 - 115 - LRB103 38816 HLH 68953 b
4147	4147	HB5577 - 115 - LRB103 38816 HLH 68953 b
4148	4148	1 exemption under this paragraph. Retailers must keep the
4149	4149	2 form as documentation of the exemption in their records
4150	4150	3 for a period of not less than 6 years. "Armed forces of the
4151	4151	4 United States" means the United States Army, Navy, Air
4152	4152	5 Force, Marine Corps, or Coast Guard. This paragraph is
4153	4153	6 exempt from the provisions of Section 2-70.
4154	4154	7 (49) Beginning on January 1, 2025, medical appliances
4155	4155	8 and products that are classified as Class III medical
4156	4156	9 devices by the United States Food and Drug Administration
4157	4157	10 and that are used for cancer treatment pursuant to a
4158	4158	11 prescription, as well as any accessories and components
4159	4159	12 related to those appliances and devices. As used in this
4160	4160	13 paragraph, "medical appliance" means a product that was
4161	4161	14 classified as a medical appliance and was subject to a 1%
4162	4162	15 rate of tax immediately prior to the effective date of
4163	4163	16 this amendatory Act of the 103rd General Assembly,
4164	4164	17 including, but not limited to, devices used to treat
4165	4165	18 amyotrophic lateral sclerosis, as well as other items as
4166	4166	19 determined by the Department by rule. This paragraph is
4167	4167	20 exempt from the provisions of Section 2-70.
4168	4168	21 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
4169	4169	22 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
4170	4170	23 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
4171	4171	24 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
4172	4172	25 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
4173	4173	26 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
4174	4174
4175	4175
4176	4176
4177	4177
4178	4178
4179	4179	HB5577 - 115 - LRB103 38816 HLH 68953 b
4180	4180
4181	4181
4182	4182	HB5577- 116 -LRB103 38816 HLH 68953 b HB5577 - 116 - LRB103 38816 HLH 68953 b
4183	4183	HB5577 - 116 - LRB103 38816 HLH 68953 b
4184	4184	1 12-12-23.)
4185	4185	2 (35 ILCS 120/2-10)
4186	4186	3 Sec. 2-10. Rate of tax. Unless otherwise provided in this
4187	4187	4 Section, the tax imposed by this Act is at the rate of 6.25% of
4188	4188	5 gross receipts from sales of tangible personal property made
4189	4189	6 in the course of business.
4190	4190	7 Beginning on July 1, 2000 and through December 31, 2000,
4191	4191	8 with respect to motor fuel, as defined in Section 1.1 of the
4192	4192	9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4193	4193	10 the Use Tax Act, the tax is imposed at the rate of 1.25%.
4194	4194	11 Beginning on August 6, 2010 through August 15, 2010, and
4195	4195	12 beginning again on August 5, 2022 through August 14, 2022,
4196	4196	13 with respect to sales tax holiday items as defined in Section
4197	4197	14 2-8 of this Act, the tax is imposed at the rate of 1.25%.
4198	4198	15 Within 14 days after July 1, 2000 (the effective date of
4199	4199	16 Public Act 91-872), each retailer of motor fuel and gasohol
4200	4200	17 shall cause the following notice to be posted in a prominently
4201	4201	18 visible place on each retail dispensing device that is used to
4202	4202	19 dispense motor fuel or gasohol in the State of Illinois: "As of
4203	4203	20 July 1, 2000, the State of Illinois has eliminated the State's
4204	4204	21 share of sales tax on motor fuel and gasohol through December
4205	4205	22 31, 2000. The price on this pump should reflect the
4206	4206	23 elimination of the tax." The notice shall be printed in bold
4207	4207	24 print on a sign that is no smaller than 4 inches by 8 inches.
4208	4208	25 The sign shall be clearly visible to customers. Any retailer
4209	4209
4210	4210
4211	4211
4212	4212
4213	4213
4214	4214	HB5577 - 116 - LRB103 38816 HLH 68953 b
4215	4215
4216	4216
4217	4217	HB5577- 117 -LRB103 38816 HLH 68953 b HB5577 - 117 - LRB103 38816 HLH 68953 b
4218	4218	HB5577 - 117 - LRB103 38816 HLH 68953 b
4219	4219	1 who fails to post or maintain a required sign through December
4220	4220	2 31, 2000 is guilty of a petty offense for which the fine shall
4221	4221	3 be $500 per day per each retail premises where a violation
4222	4222	4 occurs.
4223	4223	5 With respect to gasohol, as defined in the Use Tax Act, the
4224	4224	6 tax imposed by this Act applies to (i) 70% of the proceeds of
4225	4225	7 sales made on or after January 1, 1990, and before July 1,
4226	4226	8 2003, (ii) 80% of the proceeds of sales made on or after July
4227	4227	9 1, 2003 and on or before July 1, 2017, (iii) 100% of the
4228	4228	10 proceeds of sales made after July 1, 2017 and prior to January
4229	4229	11 1, 2024, (iv) 90% of the proceeds of sales made on or after
4230	4230	12 January 1, 2024 and on or before December 31, 2028, and (v)
4231	4231	13 100% of the proceeds of sales made after December 31, 2028. If,
4232	4232	14 at any time, however, the tax under this Act on sales of
4233	4233	15 gasohol, as defined in the Use Tax Act, is imposed at the rate
4234	4234	16 of 1.25%, then the tax imposed by this Act applies to 100% of
4235	4235	17 the proceeds of sales of gasohol made during that time.
4236	4236	18 With respect to mid-range ethanol blends, as defined in
4237	4237	19 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4238	4238	20 applies to (i) 80% of the proceeds of sales made on or after
4239	4239	21 January 1, 2024 and on or before December 31, 2028 and (ii)
4240	4240	22 100% of the proceeds of sales made after December 31, 2028. If,
4241	4241	23 at any time, however, the tax under this Act on sales of
4242	4242	24 mid-range ethanol blends is imposed at the rate of 1.25%, then
4243	4243	25 the tax imposed by this Act applies to 100% of the proceeds of
4244	4244	26 sales of mid-range ethanol blends made during that time.
4245	4245
4246	4246
4247	4247
4248	4248
4249	4249
4250	4250	HB5577 - 117 - LRB103 38816 HLH 68953 b
4251	4251
4252	4252
4253	4253	HB5577- 118 -LRB103 38816 HLH 68953 b HB5577 - 118 - LRB103 38816 HLH 68953 b
4254	4254	HB5577 - 118 - LRB103 38816 HLH 68953 b
4255	4255	1 With respect to majority blended ethanol fuel, as defined
4256	4256	2 in the Use Tax Act, the tax imposed by this Act does not apply
4257	4257	3 to the proceeds of sales made on or after July 1, 2003 and on
4258	4258	4 or before December 31, 2028 but applies to 100% of the proceeds
4259	4259	5 of sales made thereafter.
4260	4260	6 With respect to biodiesel blends, as defined in the Use
4261	4261	7 Tax Act, with no less than 1% and no more than 10% biodiesel,
4262	4262	8 the tax imposed by this Act applies to (i) 80% of the proceeds
4263	4263	9 of sales made on or after July 1, 2003 and on or before
4264	4264	10 December 31, 2018 and (ii) 100% of the proceeds of sales made
4265	4265	11 after December 31, 2018 and before January 1, 2024. On and
4266	4266	12 after January 1, 2024 and on or before December 31, 2030, the
4267	4267	13 taxation of biodiesel, renewable diesel, and biodiesel blends
4268	4268	14 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4269	4269	15 at any time, however, the tax under this Act on sales of
4270	4270	16 biodiesel blends, as defined in the Use Tax Act, with no less
4271	4271	17 than 1% and no more than 10% biodiesel is imposed at the rate
4272	4272	18 of 1.25%, then the tax imposed by this Act applies to 100% of
4273	4273	19 the proceeds of sales of biodiesel blends with no less than 1%
4274	4274	20 and no more than 10% biodiesel made during that time.
4275	4275	21 With respect to biodiesel, as defined in the Use Tax Act,
4276	4276	22 and biodiesel blends, as defined in the Use Tax Act, with more
4277	4277	23 than 10% but no more than 99% biodiesel, the tax imposed by
4278	4278	24 this Act does not apply to the proceeds of sales made on or
4279	4279	25 after July 1, 2003 and on or before December 31, 2023. On and
4280	4280	26 after January 1, 2024 and on or before December 31, 2030, the
4281	4281
4282	4282
4283	4283
4284	4284
4285	4285
4286	4286	HB5577 - 118 - LRB103 38816 HLH 68953 b
4287	4287
4288	4288
4289	4289	HB5577- 119 -LRB103 38816 HLH 68953 b HB5577 - 119 - LRB103 38816 HLH 68953 b
4290	4290	HB5577 - 119 - LRB103 38816 HLH 68953 b
4291	4291	1 taxation of biodiesel, renewable diesel, and biodiesel blends
4292	4292	2 shall be as provided in Section 3-5.1 of the Use Tax Act.
4293	4293	3 Until July 1, 2022 and beginning again on July 1, 2023,
4294	4294	4 with respect to food for human consumption that is to be
4295	4295	5 consumed off the premises where it is sold (other than
4296	4296	6 alcoholic beverages, food consisting of or infused with adult
4297	4297	7 use cannabis, soft drinks, and food that has been prepared for
4298	4298	8 immediate consumption), the tax is imposed at the rate of 1%.
4299	4299	9 Beginning July 1, 2022 and until July 1, 2023, with respect to
4300	4300	10 food for human consumption that is to be consumed off the
4301	4301	11 premises where it is sold (other than alcoholic beverages,
4302	4302	12 food consisting of or infused with adult use cannabis, soft
4303	4303	13 drinks, and food that has been prepared for immediate
4304	4304	14 consumption), the tax is imposed at the rate of 0%.
4305	4305	15 With respect to prescription and nonprescription
4306	4306	16 medicines, drugs, medical appliances, products classified as
4307	4307	17 Class III medical devices by the United States Food and Drug
4308	4308	18 Administration that are used for cancer treatment pursuant to
4309	4309	19 a prescription, as well as any accessories and components
4310	4310	20 related to those devices, modifications to a motor vehicle for
4311	4311	21 the purpose of rendering it usable by a person with a
4312	4312	22 disability, and insulin, blood sugar testing materials,
4313	4313	23 syringes, and needles used by human diabetics (except to the
4314	4314	24 extent that those items are exempt by the Department under
4315	4315	25 paragraph (49) of Section 2-5), the tax is imposed at the rate
4316	4316	26 of 1%. For the purposes of this Section, until September 1,
4317	4317
4318	4318
4319	4319
4320	4320
4321	4321
4322	4322	HB5577 - 119 - LRB103 38816 HLH 68953 b
4323	4323
4324	4324
4325	4325	HB5577- 120 -LRB103 38816 HLH 68953 b HB5577 - 120 - LRB103 38816 HLH 68953 b
4326	4326	HB5577 - 120 - LRB103 38816 HLH 68953 b
4327	4327	1 2009: the term "soft drinks" means any complete, finished,
4328	4328	2 ready-to-use, non-alcoholic drink, whether carbonated or not,
4329	4329	3 including, but not limited to, soda water, cola, fruit juice,
4330	4330	4 vegetable juice, carbonated water, and all other preparations
4331	4331	5 commonly known as soft drinks of whatever kind or description
4332	4332	6 that are contained in any closed or sealed bottle, can,
4333	4333	7 carton, or container, regardless of size; but "soft drinks"
4334	4334	8 does not include coffee, tea, non-carbonated water, infant
4335	4335	9 formula, milk or milk products as defined in the Grade A
4336	4336	10 Pasteurized Milk and Milk Products Act, or drinks containing
4337	4337	11 50% or more natural fruit or vegetable juice.
4338	4338	12 Notwithstanding any other provisions of this Act,
4339	4339	13 beginning September 1, 2009, "soft drinks" means non-alcoholic
4340	4340	14 beverages that contain natural or artificial sweeteners. "Soft
4341	4341	15 drinks" does not include beverages that contain milk or milk
4342	4342	16 products, soy, rice or similar milk substitutes, or greater
4343	4343	17 than 50% of vegetable or fruit juice by volume.
4344	4344	18 Until August 1, 2009, and notwithstanding any other
4345	4345	19 provisions of this Act, "food for human consumption that is to
4346	4346	20 be consumed off the premises where it is sold" includes all
4347	4347	21 food sold through a vending machine, except soft drinks and
4348	4348	22 food products that are dispensed hot from a vending machine,
4349	4349	23 regardless of the location of the vending machine. Beginning
4350	4350	24 August 1, 2009, and notwithstanding any other provisions of
4351	4351	25 this Act, "food for human consumption that is to be consumed
4352	4352	26 off the premises where it is sold" includes all food sold
4353	4353
4354	4354
4355	4355
4356	4356
4357	4357
4358	4358	HB5577 - 120 - LRB103 38816 HLH 68953 b
4359	4359
4360	4360
4361	4361	HB5577- 121 -LRB103 38816 HLH 68953 b HB5577 - 121 - LRB103 38816 HLH 68953 b
4362	4362	HB5577 - 121 - LRB103 38816 HLH 68953 b
4363	4363	1 through a vending machine, except soft drinks, candy, and food
4364	4364	2 products that are dispensed hot from a vending machine,
4365	4365	3 regardless of the location of the vending machine.
4366	4366	4 Notwithstanding any other provisions of this Act,
4367	4367	5 beginning September 1, 2009, "food for human consumption that
4368	4368	6 is to be consumed off the premises where it is sold" does not
4369	4369	7 include candy. For purposes of this Section, "candy" means a
4370	4370	8 preparation of sugar, honey, or other natural or artificial
4371	4371	9 sweeteners in combination with chocolate, fruits, nuts or
4372	4372	10 other ingredients or flavorings in the form of bars, drops, or
4373	4373	11 pieces. "Candy" does not include any preparation that contains
4374	4374	12 flour or requires refrigeration.
4375	4375	13 Notwithstanding any other provisions of this Act,
4376	4376	14 beginning September 1, 2009, "nonprescription medicines and
4377	4377	15 drugs" does not include grooming and hygiene products. For
4378	4378	16 purposes of this Section, "grooming and hygiene products"
4379	4379	17 includes, but is not limited to, soaps and cleaning solutions,
4380	4380	18 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4381	4381	19 lotions and screens, unless those products are available by
4382	4382	20 prescription only, regardless of whether the products meet the
4383	4383	21 definition of "over-the-counter-drugs". For the purposes of
4384	4384	22 this paragraph, "over-the-counter-drug" means a drug for human
4385	4385	23 use that contains a label that identifies the product as a drug
4386	4386	24 as required by 21 CFR 201.66. The "over-the-counter-drug"
4387	4387	25 label includes:
4388	4388	26 (A) a "Drug Facts" panel; or
4389	4389
4390	4390
4391	4391
4392	4392
4393	4393
4394	4394	HB5577 - 121 - LRB103 38816 HLH 68953 b
4395	4395
4396	4396
4397	4397	HB5577- 122 -LRB103 38816 HLH 68953 b HB5577 - 122 - LRB103 38816 HLH 68953 b
4398	4398	HB5577 - 122 - LRB103 38816 HLH 68953 b
4399	4399	1 (B) a statement of the "active ingredient(s)" with a
4400	4400	2 list of those ingredients contained in the compound,
4401	4401	3 substance or preparation.
4402	4402	4 Beginning on January 1, 2014 (the effective date of Public
4403	4403	5 Act 98-122), "prescription and nonprescription medicines and
4404	4404	6 drugs" includes medical cannabis purchased from a registered
4405	4405	7 dispensing organization under the Compassionate Use of Medical
4406	4406	8 Cannabis Program Act.
4407	4407	9 As used in this Section, "adult use cannabis" means
4408	4408	10 cannabis subject to tax under the Cannabis Cultivation
4409	4409	11 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4410	4410	12 and does not include cannabis subject to tax under the
4411	4411	13 Compassionate Use of Medical Cannabis Program Act.
4412	4412	14 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
4413	4413	15 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
4414	4414	16 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
4415	4415	17 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
4416	4416
4417	4417
4418	4418
4419	4419
4420	4420
4421	4421	HB5577 - 122 - LRB103 38816 HLH 68953 b