Illinois 2023-2024 Regular Session

Illinois House Bill HB5578 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 HB5578 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. Provides that medical appliances, including, but not limited to, devices used to provide advanced life support services, and Class III medical devices that are used for cancer treatment pursuant to a prescription are exempt from the taxes imposed by those Acts. Effective January 1, 2025. LRB103 38815 HLH 68952 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5578 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. Provides that medical appliances, including, but not limited to, devices used to provide advanced life support services, and Class III medical devices that are used for cancer treatment pursuant to a prescription are exempt from the taxes imposed by those Acts. Effective January 1, 2025. LRB103 38815 HLH 68952 b LRB103 38815 HLH 68952 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5578 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. Provides that medical appliances, including, but not limited to, devices used to provide advanced life support services, and Class III medical devices that are used for cancer treatment pursuant to a prescription are exempt from the taxes imposed by those Acts. Effective January 1, 2025.
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15	15	A BILL FOR
16	16	HB5578LRB103 38815 HLH 68952 b HB5578 LRB103 38815 HLH 68952 b
17	17	HB5578 LRB103 38815 HLH 68952 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 HB5578 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. Provides that medical appliances, including, but not limited to, devices used to provide advanced life support services, and Class III medical devices that are used for cancer treatment pursuant to a prescription are exempt from the taxes imposed by those Acts. Effective January 1, 2025.
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56	56	LRB103 38815 HLH 68952 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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442	442
443	443
444	444	HB5578 - 11 - LRB103 38815 HLH 68952 b
445	445
446	446
447	447	HB5578- 12 -LRB103 38815 HLH 68952 b HB5578 - 12 - LRB103 38815 HLH 68952 b
448	448	HB5578 - 12 - LRB103 38815 HLH 68952 b
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	HB5578 - 12 - LRB103 38815 HLH 68952 b
481	481
482	482
483	483	HB5578- 13 -LRB103 38815 HLH 68952 b HB5578 - 13 - LRB103 38815 HLH 68952 b
484	484	HB5578 - 13 - LRB103 38815 HLH 68952 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	HB5578 - 13 - LRB103 38815 HLH 68952 b
517	517
518	518
519	519	HB5578- 14 -LRB103 38815 HLH 68952 b HB5578 - 14 - LRB103 38815 HLH 68952 b
520	520	HB5578 - 14 - LRB103 38815 HLH 68952 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	HB5578 - 14 - LRB103 38815 HLH 68952 b
553	553
554	554
555	555	HB5578- 15 -LRB103 38815 HLH 68952 b HB5578 - 15 - LRB103 38815 HLH 68952 b
556	556	HB5578 - 15 - LRB103 38815 HLH 68952 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	HB5578 - 15 - LRB103 38815 HLH 68952 b
589	589
590	590
591	591	HB5578- 16 -LRB103 38815 HLH 68952 b HB5578 - 16 - LRB103 38815 HLH 68952 b
592	592	HB5578 - 16 - LRB103 38815 HLH 68952 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	HB5578 - 16 - LRB103 38815 HLH 68952 b
625	625
626	626
627	627	HB5578- 17 -LRB103 38815 HLH 68952 b HB5578 - 17 - LRB103 38815 HLH 68952 b
628	628	HB5578 - 17 - LRB103 38815 HLH 68952 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	HB5578 - 17 - LRB103 38815 HLH 68952 b
661	661
662	662
663	663	HB5578- 18 -LRB103 38815 HLH 68952 b HB5578 - 18 - LRB103 38815 HLH 68952 b
664	664	HB5578 - 18 - LRB103 38815 HLH 68952 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	HB5578 - 18 - LRB103 38815 HLH 68952 b
697	697
698	698
699	699	HB5578- 19 -LRB103 38815 HLH 68952 b HB5578 - 19 - LRB103 38815 HLH 68952 b
700	700	HB5578 - 19 - LRB103 38815 HLH 68952 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	HB5578 - 19 - LRB103 38815 HLH 68952 b
733	733
734	734
735	735	HB5578- 20 -LRB103 38815 HLH 68952 b HB5578 - 20 - LRB103 38815 HLH 68952 b
736	736	HB5578 - 20 - LRB103 38815 HLH 68952 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	HB5578 - 20 - LRB103 38815 HLH 68952 b
769	769
770	770
771	771	HB5578- 21 -LRB103 38815 HLH 68952 b HB5578 - 21 - LRB103 38815 HLH 68952 b
772	772	HB5578 - 21 - LRB103 38815 HLH 68952 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	HB5578 - 21 - LRB103 38815 HLH 68952 b
805	805
806	806
807	807	HB5578- 22 -LRB103 38815 HLH 68952 b HB5578 - 22 - LRB103 38815 HLH 68952 b
808	808	HB5578 - 22 - LRB103 38815 HLH 68952 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	HB5578 - 22 - LRB103 38815 HLH 68952 b
841	841
842	842
843	843	HB5578- 23 -LRB103 38815 HLH 68952 b HB5578 - 23 - LRB103 38815 HLH 68952 b
844	844	HB5578 - 23 - LRB103 38815 HLH 68952 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	HB5578 - 23 - LRB103 38815 HLH 68952 b
877	877
878	878
879	879	HB5578- 24 -LRB103 38815 HLH 68952 b HB5578 - 24 - LRB103 38815 HLH 68952 b
880	880	HB5578 - 24 - LRB103 38815 HLH 68952 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
901	901	21 provide advanced life support services, as defined by Section
902	902	22 3.10 of the Emergency Medical Services (EMS) Systems Act, and
903	903	23 any other items designated as medical appliances by the
904	904	24 Department by rule. This paragraph is exempt from the
905	905	25 provisions of Section 3-90.
906	906	26 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
907	907
908	908
909	909
910	910
911	911
912	912	HB5578 - 24 - LRB103 38815 HLH 68952 b
913	913
914	914
915	915	HB5578- 25 -LRB103 38815 HLH 68952 b HB5578 - 25 - LRB103 38815 HLH 68952 b
916	916	HB5578 - 25 - LRB103 38815 HLH 68952 b
917	917	1 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
918	918	2 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
919	919	3 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
920	920	4 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
921	921	5 revised 12-12-23.)
922	922	6 (35 ILCS 105/3-10)
923	923	7 Sec. 3-10. Rate of tax. Unless otherwise provided in this
924	924	8 Section, the tax imposed by this Act is at the rate of 6.25% of
925	925	9 either the selling price or the fair market value, if any, of
926	926	10 the tangible personal property. In all cases where property
927	927	11 functionally used or consumed is the same as the property that
928	928	12 was purchased at retail, then the tax is imposed on the selling
929	929	13 price of the property. In all cases where property
930	930	14 functionally used or consumed is a by-product or waste product
931	931	15 that has been refined, manufactured, or produced from property
932	932	16 purchased at retail, then the tax is imposed on the lower of
933	933	17 the fair market value, if any, of the specific property so used
934	934	18 in this State or on the selling price of the property purchased
935	935	19 at retail. For purposes of this Section "fair market value"
936	936	20 means the price at which property would change hands between a
937	937	21 willing buyer and a willing seller, neither being under any
938	938	22 compulsion to buy or sell and both having reasonable knowledge
939	939	23 of the relevant facts. The fair market value shall be
940	940	24 established by Illinois sales by the taxpayer of the same
941	941	25 property as that functionally used or consumed, or if there
942	942
943	943
944	944
945	945
946	946
947	947	HB5578 - 25 - LRB103 38815 HLH 68952 b
948	948
949	949
950	950	HB5578- 26 -LRB103 38815 HLH 68952 b HB5578 - 26 - LRB103 38815 HLH 68952 b
951	951	HB5578 - 26 - LRB103 38815 HLH 68952 b
952	952	1 are no such sales by the taxpayer, then comparable sales or
953	953	2 purchases of property of like kind and character in Illinois.
954	954	3 Beginning on July 1, 2000 and through December 31, 2000,
955	955	4 with respect to motor fuel, as defined in Section 1.1 of the
956	956	5 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
957	957	6 the Use Tax Act, the tax is imposed at the rate of 1.25%.
958	958	7 Beginning on August 6, 2010 through August 15, 2010, and
959	959	8 beginning again on August 5, 2022 through August 14, 2022,
960	960	9 with respect to sales tax holiday items as defined in Section
961	961	10 3-6 of this Act, the tax is imposed at the rate of 1.25%.
962	962	11 With respect to gasohol, the tax imposed by this Act
963	963	12 applies to (i) 70% of the proceeds of sales made on or after
964	964	13 January 1, 1990, and before July 1, 2003, (ii) 80% of the
965	965	14 proceeds of sales made on or after July 1, 2003 and on or
966	966	15 before July 1, 2017, (iii) 100% of the proceeds of sales made
967	967	16 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
968	968	17 the proceeds of sales made on or after January 1, 2024 and on
969	969	18 or before December 31, 2028, and (v) 100% of the proceeds of
970	970	19 sales made after December 31, 2028. If, at any time, however,
971	971	20 the tax under this Act on sales of gasohol is imposed at the
972	972	21 rate of 1.25%, then the tax imposed by this Act applies to 100%
973	973	22 of the proceeds of sales of gasohol made during that time.
974	974	23 With respect to mid-range ethanol blends, the tax imposed
975	975	24 by this Act applies to (i) 80% of the proceeds of sales made on
976	976	25 or after January 1, 2024 and on or before December 31, 2028 and
977	977	26 (ii) 100% of the proceeds of sales made thereafter. If, at any
978	978
979	979
980	980
981	981
982	982
983	983	HB5578 - 26 - LRB103 38815 HLH 68952 b
984	984
985	985
986	986	HB5578- 27 -LRB103 38815 HLH 68952 b HB5578 - 27 - LRB103 38815 HLH 68952 b
987	987	HB5578 - 27 - LRB103 38815 HLH 68952 b
988	988	1 time, however, the tax under this Act on sales of mid-range
989	989	2 ethanol blends is imposed at the rate of 1.25%, then the tax
990	990	3 imposed by this Act applies to 100% of the proceeds of sales of
991	991	4 mid-range ethanol blends made during that time.
992	992	5 With respect to majority blended ethanol fuel, the tax
993	993	6 imposed by this Act does not apply to the proceeds of sales
994	994	7 made on or after July 1, 2003 and on or before December 31,
995	995	8 2028 but applies to 100% of the proceeds of sales made
996	996	9 thereafter.
997	997	10 With respect to biodiesel blends with no less than 1% and
998	998	11 no more than 10% biodiesel, the tax imposed by this Act applies
999	999	12 to (i) 80% of the proceeds of sales made on or after July 1,
1000	1000	13 2003 and on or before December 31, 2018 and (ii) 100% of the
1001	1001	14 proceeds of sales made after December 31, 2018 and before
1002	1002	15 January 1, 2024. On and after January 1, 2024 and on or before
1003	1003	16 December 31, 2030, the taxation of biodiesel, renewable
1004	1004	17 diesel, and biodiesel blends shall be as provided in Section
1005	1005	18 3-5.1. If, at any time, however, the tax under this Act on
1006	1006	19 sales of biodiesel blends with no less than 1% and no more than
1007	1007	20 10% biodiesel is imposed at the rate of 1.25%, then the tax
1008	1008	21 imposed by this Act applies to 100% of the proceeds of sales of
1009	1009	22 biodiesel blends with no less than 1% and no more than 10%
1010	1010	23 biodiesel made during that time.
1011	1011	24 With respect to biodiesel and biodiesel blends with more
1012	1012	25 than 10% but no more than 99% biodiesel, the tax imposed by
1013	1013	26 this Act does not apply to the proceeds of sales made on or
1014	1014
1015	1015
1016	1016
1017	1017
1018	1018
1019	1019	HB5578 - 27 - LRB103 38815 HLH 68952 b
1020	1020
1021	1021
1022	1022	HB5578- 28 -LRB103 38815 HLH 68952 b HB5578 - 28 - LRB103 38815 HLH 68952 b
1023	1023	HB5578 - 28 - LRB103 38815 HLH 68952 b
1024	1024	1 after July 1, 2003 and on or before December 31, 2023. On and
1025	1025	2 after January 1, 2024 and on or before December 31, 2030, the
1026	1026	3 taxation of biodiesel, renewable diesel, and biodiesel blends
1027	1027	4 shall be as provided in Section 3-5.1.
1028	1028	5 Until July 1, 2022 and beginning again on July 1, 2023,
1029	1029	6 with respect to food for human consumption that is to be
1030	1030	7 consumed off the premises where it is sold (other than
1031	1031	8 alcoholic beverages, food consisting of or infused with adult
1032	1032	9 use cannabis, soft drinks, and food that has been prepared for
1033	1033	10 immediate consumption), the tax is imposed at the rate of 1%.
1034	1034	11 Beginning on July 1, 2022 and until July 1, 2023, with respect
1035	1035	12 to food for human consumption that is to be consumed off the
1036	1036	13 premises where it is sold (other than alcoholic beverages,
1037	1037	14 food consisting of or infused with adult use cannabis, soft
1038	1038	15 drinks, and food that has been prepared for immediate
1039	1039	16 consumption), the tax is imposed at the rate of 0%.
1040	1040	17 With respect to prescription and nonprescription
1041	1041	18 medicines, drugs, medical appliances, products classified as
1042	1042	19 Class III medical devices by the United States Food and Drug
1043	1043	20 Administration that are used for cancer treatment pursuant to
1044	1044	21 a prescription, as well as any accessories and components
1045	1045	22 related to those devices, modifications to a motor vehicle for
1046	1046	23 the purpose of rendering it usable by a person with a
1047	1047	24 disability, and insulin, blood sugar testing materials,
1048	1048	25 syringes, and needles used by human diabetics (except to the
1049	1049	26 extent that those items are exempt by the Department under
1050	1050
1051	1051
1052	1052
1053	1053
1054	1054
1055	1055	HB5578 - 28 - LRB103 38815 HLH 68952 b
1056	1056
1057	1057
1058	1058	HB5578- 29 -LRB103 38815 HLH 68952 b HB5578 - 29 - LRB103 38815 HLH 68952 b
1059	1059	HB5578 - 29 - LRB103 38815 HLH 68952 b
1060	1060	1 paragraph (44) of Section 3-5), the tax is imposed at the rate
1061	1061	2 of 1%. For the purposes of this Section, until September 1,
1062	1062	3 2009: the term "soft drinks" means any complete, finished,
1063	1063	4 ready-to-use, non-alcoholic drink, whether carbonated or not,
1064	1064	5 including, but not limited to, soda water, cola, fruit juice,
1065	1065	6 vegetable juice, carbonated water, and all other preparations
1066	1066	7 commonly known as soft drinks of whatever kind or description
1067	1067	8 that are contained in any closed or sealed bottle, can,
1068	1068	9 carton, or container, regardless of size; but "soft drinks"
1069	1069	10 does not include coffee, tea, non-carbonated water, infant
1070	1070	11 formula, milk or milk products as defined in the Grade A
1071	1071	12 Pasteurized Milk and Milk Products Act, or drinks containing
1072	1072	13 50% or more natural fruit or vegetable juice.
1073	1073	14 Notwithstanding any other provisions of this Act,
1074	1074	15 beginning September 1, 2009, "soft drinks" means non-alcoholic
1075	1075	16 beverages that contain natural or artificial sweeteners. "Soft
1076	1076	17 drinks" does not include beverages that contain milk or milk
1077	1077	18 products, soy, rice or similar milk substitutes, or greater
1078	1078	19 than 50% of vegetable or fruit juice by volume.
1079	1079	20 Until August 1, 2009, and notwithstanding any other
1080	1080	21 provisions of this Act, "food for human consumption that is to
1081	1081	22 be consumed off the premises where it is sold" includes all
1082	1082	23 food sold through a vending machine, except soft drinks and
1083	1083	24 food products that are dispensed hot from a vending machine,
1084	1084	25 regardless of the location of the vending machine. Beginning
1085	1085	26 August 1, 2009, and notwithstanding any other provisions of
1086	1086
1087	1087
1088	1088
1089	1089
1090	1090
1091	1091	HB5578 - 29 - LRB103 38815 HLH 68952 b
1092	1092
1093	1093
1094	1094	HB5578- 30 -LRB103 38815 HLH 68952 b HB5578 - 30 - LRB103 38815 HLH 68952 b
1095	1095	HB5578 - 30 - LRB103 38815 HLH 68952 b
1096	1096	1 this Act, "food for human consumption that is to be consumed
1097	1097	2 off the premises where it is sold" includes all food sold
1098	1098	3 through a vending machine, except soft drinks, candy, and food
1099	1099	4 products that are dispensed hot from a vending machine,
1100	1100	5 regardless of the location of the vending machine.
1101	1101	6 Notwithstanding any other provisions of this Act,
1102	1102	7 beginning September 1, 2009, "food for human consumption that
1103	1103	8 is to be consumed off the premises where it is sold" does not
1104	1104	9 include candy. For purposes of this Section, "candy" means a
1105	1105	10 preparation of sugar, honey, or other natural or artificial
1106	1106	11 sweeteners in combination with chocolate, fruits, nuts or
1107	1107	12 other ingredients or flavorings in the form of bars, drops, or
1108	1108	13 pieces. "Candy" does not include any preparation that contains
1109	1109	14 flour or requires refrigeration.
1110	1110	15 Notwithstanding any other provisions of this Act,
1111	1111	16 beginning September 1, 2009, "nonprescription medicines and
1112	1112	17 drugs" does not include grooming and hygiene products. For
1113	1113	18 purposes of this Section, "grooming and hygiene products"
1114	1114	19 includes, but is not limited to, soaps and cleaning solutions,
1115	1115	20 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1116	1116	21 lotions and screens, unless those products are available by
1117	1117	22 prescription only, regardless of whether the products meet the
1118	1118	23 definition of "over-the-counter-drugs". For the purposes of
1119	1119	24 this paragraph, "over-the-counter-drug" means a drug for human
1120	1120	25 use that contains a label that identifies the product as a drug
1121	1121	26 as required by 21 CFR 201.66. The "over-the-counter-drug"
1122	1122
1123	1123
1124	1124
1125	1125
1126	1126
1127	1127	HB5578 - 30 - LRB103 38815 HLH 68952 b
1128	1128
1129	1129
1130	1130	HB5578- 31 -LRB103 38815 HLH 68952 b HB5578 - 31 - LRB103 38815 HLH 68952 b
1131	1131	HB5578 - 31 - LRB103 38815 HLH 68952 b
1132	1132	1 label includes:
1133	1133	2 (A) a "Drug Facts" panel; or
1134	1134	3 (B) a statement of the "active ingredient(s)" with a
1135	1135	4 list of those ingredients contained in the compound,
1136	1136	5 substance or preparation.
1137	1137	6 Beginning on January 1, 2014 (the effective date of Public
1138	1138	7 Act 98-122), "prescription and nonprescription medicines and
1139	1139	8 drugs" includes medical cannabis purchased from a registered
1140	1140	9 dispensing organization under the Compassionate Use of Medical
1141	1141	10 Cannabis Program Act.
1142	1142	11 As used in this Section, "adult use cannabis" means
1143	1143	12 cannabis subject to tax under the Cannabis Cultivation
1144	1144	13 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1145	1145	14 and does not include cannabis subject to tax under the
1146	1146	15 Compassionate Use of Medical Cannabis Program Act.
1147	1147	16 If the property that is purchased at retail from a
1148	1148	17 retailer is acquired outside Illinois and used outside
1149	1149	18 Illinois before being brought to Illinois for use here and is
1150	1150	19 taxable under this Act, the "selling price" on which the tax is
1151	1151	20 computed shall be reduced by an amount that represents a
1152	1152	21 reasonable allowance for depreciation for the period of prior
1153	1153	22 out-of-state use.
1154	1154	23 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
1155	1155	24 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
1156	1156	25 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
1157	1157	26 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
1158	1158
1159	1159
1160	1160
1161	1161
1162	1162
1163	1163	HB5578 - 31 - LRB103 38815 HLH 68952 b
1164	1164
1165	1165
1166	1166	HB5578- 32 -LRB103 38815 HLH 68952 b HB5578 - 32 - LRB103 38815 HLH 68952 b
1167	1167	HB5578 - 32 - LRB103 38815 HLH 68952 b
1168	1168	1 Section 10. The Service Use Tax Act is amended by changing
1169	1169	2 Sections 3-5 and 3-10 as follows:
1170	1170	3 (35 ILCS 110/3-5)
1171	1171	4 Sec. 3-5. Exemptions. Use of the following tangible
1172	1172	5 personal property is exempt from the tax imposed by this Act:
1173	1173	6 (1) Personal property purchased from a corporation,
1174	1174	7 society, association, foundation, institution, or
1175	1175	8 organization, other than a limited liability company, that is
1176	1176	9 organized and operated as a not-for-profit service enterprise
1177	1177	10 for the benefit of persons 65 years of age or older if the
1178	1178	11 personal property was not purchased by the enterprise for the
1179	1179	12 purpose of resale by the enterprise.
1180	1180	13 (2) Personal property purchased by a non-profit Illinois
1181	1181	14 county fair association for use in conducting, operating, or
1182	1182	15 promoting the county fair.
1183	1183	16 (3) Personal property purchased by a not-for-profit arts
1184	1184	17 or cultural organization that establishes, by proof required
1185	1185	18 by the Department by rule, that it has received an exemption
1186	1186	19 under Section 501(c)(3) of the Internal Revenue Code and that
1187	1187	20 is organized and operated primarily for the presentation or
1188	1188	21 support of arts or cultural programming, activities, or
1189	1189	22 services. These organizations include, but are not limited to,
1190	1190	23 music and dramatic arts organizations such as symphony
1191	1191	24 orchestras and theatrical groups, arts and cultural service
1192	1192
1193	1193
1194	1194
1195	1195
1196	1196
1197	1197	HB5578 - 32 - LRB103 38815 HLH 68952 b
1198	1198
1199	1199
1200	1200	HB5578- 33 -LRB103 38815 HLH 68952 b HB5578 - 33 - LRB103 38815 HLH 68952 b
1201	1201	HB5578 - 33 - LRB103 38815 HLH 68952 b
1202	1202	1 organizations, local arts councils, visual arts organizations,
1203	1203	2 and media arts organizations. On and after July 1, 2001 (the
1204	1204	3 effective date of Public Act 92-35), however, an entity
1205	1205	4 otherwise eligible for this exemption shall not make tax-free
1206	1206	5 purchases unless it has an active identification number issued
1207	1207	6 by the Department.
1208	1208	7 (4) Legal tender, currency, medallions, or gold or silver
1209	1209	8 coinage issued by the State of Illinois, the government of the
1210	1210	9 United States of America, or the government of any foreign
1211	1211	10 country, and bullion.
1212	1212	11 (5) Until July 1, 2003 and beginning again on September 1,
1213	1213	12 2004 through August 30, 2014, graphic arts machinery and
1214	1214	13 equipment, including repair and replacement parts, both new
1215	1215	14 and used, and including that manufactured on special order or
1216	1216	15 purchased for lease, certified by the purchaser to be used
1217	1217	16 primarily for graphic arts production. Equipment includes
1218	1218	17 chemicals or chemicals acting as catalysts but only if the
1219	1219	18 chemicals or chemicals acting as catalysts effect a direct and
1220	1220	19 immediate change upon a graphic arts product. Beginning on
1221	1221	20 July 1, 2017, graphic arts machinery and equipment is included
1222	1222	21 in the manufacturing and assembling machinery and equipment
1223	1223	22 exemption under Section 2 of this Act.
1224	1224	23 (6) Personal property purchased from a teacher-sponsored
1225	1225	24 student organization affiliated with an elementary or
1226	1226	25 secondary school located in Illinois.
1227	1227	26 (7) Farm machinery and equipment, both new and used,
1228	1228
1229	1229
1230	1230
1231	1231
1232	1232
1233	1233	HB5578 - 33 - LRB103 38815 HLH 68952 b
1234	1234
1235	1235
1236	1236	HB5578- 34 -LRB103 38815 HLH 68952 b HB5578 - 34 - LRB103 38815 HLH 68952 b
1237	1237	HB5578 - 34 - LRB103 38815 HLH 68952 b
1238	1238	1 including that manufactured on special order, certified by the
1239	1239	2 purchaser to be used primarily for production agriculture or
1240	1240	3 State or federal agricultural programs, including individual
1241	1241	4 replacement parts for the machinery and equipment, including
1242	1242	5 machinery and equipment purchased for lease, and including
1243	1243	6 implements of husbandry defined in Section 1-130 of the
1244	1244	7 Illinois Vehicle Code, farm machinery and agricultural
1245	1245	8 chemical and fertilizer spreaders, and nurse wagons required
1246	1246	9 to be registered under Section 3-809 of the Illinois Vehicle
1247	1247	10 Code, but excluding other motor vehicles required to be
1248	1248	11 registered under the Illinois Vehicle Code. Horticultural
1249	1249	12 polyhouses or hoop houses used for propagating, growing, or
1250	1250	13 overwintering plants shall be considered farm machinery and
1251	1251	14 equipment under this item (7). Agricultural chemical tender
1252	1252	15 tanks and dry boxes shall include units sold separately from a
1253	1253	16 motor vehicle required to be licensed and units sold mounted
1254	1254	17 on a motor vehicle required to be licensed if the selling price
1255	1255	18 of the tender is separately stated.
1256	1256	19 Farm machinery and equipment shall include precision
1257	1257	20 farming equipment that is installed or purchased to be
1258	1258	21 installed on farm machinery and equipment, including, but not
1259	1259	22 limited to, tractors, harvesters, sprayers, planters, seeders,
1260	1260	23 or spreaders. Precision farming equipment includes, but is not
1261	1261	24 limited to, soil testing sensors, computers, monitors,
1262	1262	25 software, global positioning and mapping systems, and other
1263	1263	26 such equipment.
1264	1264
1265	1265
1266	1266
1267	1267
1268	1268
1269	1269	HB5578 - 34 - LRB103 38815 HLH 68952 b
1270	1270
1271	1271
1272	1272	HB5578- 35 -LRB103 38815 HLH 68952 b HB5578 - 35 - LRB103 38815 HLH 68952 b
1273	1273	HB5578 - 35 - LRB103 38815 HLH 68952 b
1274	1274	1 Farm machinery and equipment also includes computers,
1275	1275	2 sensors, software, and related equipment used primarily in the
1276	1276	3 computer-assisted operation of production agriculture
1277	1277	4 facilities, equipment, and activities such as, but not limited
1278	1278	5 to, the collection, monitoring, and correlation of animal and
1279	1279	6 crop data for the purpose of formulating animal diets and
1280	1280	7 agricultural chemicals.
1281	1281	8 Beginning on January 1, 2024, farm machinery and equipment
1282	1282	9 also includes electrical power generation equipment used
1283	1283	10 primarily for production agriculture.
1284	1284	11 This item (7) is exempt from the provisions of Section
1285	1285	12 3-75.
1286	1286	13 (8) Until June 30, 2013, fuel and petroleum products sold
1287	1287	14 to or used by an air common carrier, certified by the carrier
1288	1288	15 to be used for consumption, shipment, or storage in the
1289	1289	16 conduct of its business as an air common carrier, for a flight
1290	1290	17 destined for or returning from a location or locations outside
1291	1291	18 the United States without regard to previous or subsequent
1292	1292	19 domestic stopovers.
1293	1293	20 Beginning July 1, 2013, fuel and petroleum products sold
1294	1294	21 to or used by an air carrier, certified by the carrier to be
1295	1295	22 used for consumption, shipment, or storage in the conduct of
1296	1296	23 its business as an air common carrier, for a flight that (i) is
1297	1297	24 engaged in foreign trade or is engaged in trade between the
1298	1298	25 United States and any of its possessions and (ii) transports
1299	1299	26 at least one individual or package for hire from the city of
1300	1300
1301	1301
1302	1302
1303	1303
1304	1304
1305	1305	HB5578 - 35 - LRB103 38815 HLH 68952 b
1306	1306
1307	1307
1308	1308	HB5578- 36 -LRB103 38815 HLH 68952 b HB5578 - 36 - LRB103 38815 HLH 68952 b
1309	1309	HB5578 - 36 - LRB103 38815 HLH 68952 b
1310	1310	1 origination to the city of final destination on the same
1311	1311	2 aircraft, without regard to a change in the flight number of
1312	1312	3 that aircraft.
1313	1313	4 (9) Proceeds of mandatory service charges separately
1314	1314	5 stated on customers' bills for the purchase and consumption of
1315	1315	6 food and beverages acquired as an incident to the purchase of a
1316	1316	7 service from a serviceman, to the extent that the proceeds of
1317	1317	8 the service charge are in fact turned over as tips or as a
1318	1318	9 substitute for tips to the employees who participate directly
1319	1319	10 in preparing, serving, hosting or cleaning up the food or
1320	1320	11 beverage function with respect to which the service charge is
1321	1321	12 imposed.
1322	1322	13 (10) Until July 1, 2003, oil field exploration, drilling,
1323	1323	14 and production equipment, including (i) rigs and parts of
1324	1324	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1325	1325	16 pipe and tubular goods, including casing and drill strings,
1326	1326	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1327	1327	18 lines, (v) any individual replacement part for oil field
1328	1328	19 exploration, drilling, and production equipment, and (vi)
1329	1329	20 machinery and equipment purchased for lease; but excluding
1330	1330	21 motor vehicles required to be registered under the Illinois
1331	1331	22 Vehicle Code.
1332	1332	23 (11) Proceeds from the sale of photoprocessing machinery
1333	1333	24 and equipment, including repair and replacement parts, both
1334	1334	25 new and used, including that manufactured on special order,
1335	1335	26 certified by the purchaser to be used primarily for
1336	1336
1337	1337
1338	1338
1339	1339
1340	1340
1341	1341	HB5578 - 36 - LRB103 38815 HLH 68952 b
1342	1342
1343	1343
1344	1344	HB5578- 37 -LRB103 38815 HLH 68952 b HB5578 - 37 - LRB103 38815 HLH 68952 b
1345	1345	HB5578 - 37 - LRB103 38815 HLH 68952 b
1346	1346	1 photoprocessing, and including photoprocessing machinery and
1347	1347	2 equipment purchased for lease.
1348	1348	3 (12) Until July 1, 2028, coal and aggregate exploration,
1349	1349	4 mining, off-highway hauling, processing, maintenance, and
1350	1350	5 reclamation equipment, including replacement parts and
1351	1351	6 equipment, and including equipment purchased for lease, but
1352	1352	7 excluding motor vehicles required to be registered under the
1353	1353	8 Illinois Vehicle Code. The changes made to this Section by
1354	1354	9 Public Act 97-767 apply on and after July 1, 2003, but no claim
1355	1355	10 for credit or refund is allowed on or after August 16, 2013
1356	1356	11 (the effective date of Public Act 98-456) for such taxes paid
1357	1357	12 during the period beginning July 1, 2003 and ending on August
1358	1358	13 16, 2013 (the effective date of Public Act 98-456).
1359	1359	14 (13) Semen used for artificial insemination of livestock
1360	1360	15 for direct agricultural production.
1361	1361	16 (14) Horses, or interests in horses, registered with and
1362	1362	17 meeting the requirements of any of the Arabian Horse Club
1363	1363	18 Registry of America, Appaloosa Horse Club, American Quarter
1364	1364	19 Horse Association, United States Trotting Association, or
1365	1365	20 Jockey Club, as appropriate, used for purposes of breeding or
1366	1366	21 racing for prizes. This item (14) is exempt from the
1367	1367	22 provisions of Section 3-75, and the exemption provided for
1368	1368	23 under this item (14) applies for all periods beginning May 30,
1369	1369	24 1995, but no claim for credit or refund is allowed on or after
1370	1370	25 January 1, 2008 (the effective date of Public Act 95-88) for
1371	1371	26 such taxes paid during the period beginning May 30, 2000 and
1372	1372
1373	1373
1374	1374
1375	1375
1376	1376
1377	1377	HB5578 - 37 - LRB103 38815 HLH 68952 b
1378	1378
1379	1379
1380	1380	HB5578- 38 -LRB103 38815 HLH 68952 b HB5578 - 38 - LRB103 38815 HLH 68952 b
1381	1381	HB5578 - 38 - LRB103 38815 HLH 68952 b
1382	1382	1 ending on January 1, 2008 (the effective date of Public Act
1383	1383	2 95-88).
1384	1384	3 (15) Computers and communications equipment utilized for
1385	1385	4 any hospital purpose and equipment used in the diagnosis,
1386	1386	5 analysis, or treatment of hospital patients purchased by a
1387	1387	6 lessor who leases the equipment, under a lease of one year or
1388	1388	7 longer executed or in effect at the time the lessor would
1389	1389	8 otherwise be subject to the tax imposed by this Act, to a
1390	1390	9 hospital that has been issued an active tax exemption
1391	1391	10 identification number by the Department under Section 1g of
1392	1392	11 the Retailers' Occupation Tax Act. If the equipment is leased
1393	1393	12 in a manner that does not qualify for this exemption or is used
1394	1394	13 in any other non-exempt manner, the lessor shall be liable for
1395	1395	14 the tax imposed under this Act or the Use Tax Act, as the case
1396	1396	15 may be, based on the fair market value of the property at the
1397	1397	16 time the non-qualifying use occurs. No lessor shall collect or
1398	1398	17 attempt to collect an amount (however designated) that
1399	1399	18 purports to reimburse that lessor for the tax imposed by this
1400	1400	19 Act or the Use Tax Act, as the case may be, if the tax has not
1401	1401	20 been paid by the lessor. If a lessor improperly collects any
1402	1402	21 such amount from the lessee, the lessee shall have a legal
1403	1403	22 right to claim a refund of that amount from the lessor. If,
1404	1404	23 however, that amount is not refunded to the lessee for any
1405	1405	24 reason, the lessor is liable to pay that amount to the
1406	1406	25 Department.
1407	1407	26 (16) Personal property purchased by a lessor who leases
1408	1408
1409	1409
1410	1410
1411	1411
1412	1412
1413	1413	HB5578 - 38 - LRB103 38815 HLH 68952 b
1414	1414
1415	1415
1416	1416	HB5578- 39 -LRB103 38815 HLH 68952 b HB5578 - 39 - LRB103 38815 HLH 68952 b
1417	1417	HB5578 - 39 - LRB103 38815 HLH 68952 b
1418	1418	1 the property, under a lease of one year or longer executed or
1419	1419	2 in effect at the time the lessor would otherwise be subject to
1420	1420	3 the tax imposed by this Act, to a governmental body that has
1421	1421	4 been issued an active tax exemption identification number by
1422	1422	5 the Department under Section 1g of the Retailers' Occupation
1423	1423	6 Tax Act. If the property is leased in a manner that does not
1424	1424	7 qualify for this exemption or is used in any other non-exempt
1425	1425	8 manner, the lessor shall be liable for the tax imposed under
1426	1426	9 this Act or the Use Tax Act, as the case may be, based on the
1427	1427	10 fair market value of the property at the time the
1428	1428	11 non-qualifying use occurs. No lessor shall collect or attempt
1429	1429	12 to collect an amount (however designated) that purports to
1430	1430	13 reimburse that lessor for the tax imposed by this Act or the
1431	1431	14 Use Tax Act, as the case may be, if the tax has not been paid
1432	1432	15 by the lessor. If a lessor improperly collects any such amount
1433	1433	16 from the lessee, the lessee shall have a legal right to claim a
1434	1434	17 refund of that amount from the lessor. If, however, that
1435	1435	18 amount is not refunded to the lessee for any reason, the lessor
1436	1436	19 is liable to pay that amount to the Department.
1437	1437	20 (17) Beginning with taxable years ending on or after
1438	1438	21 December 31, 1995 and ending with taxable years ending on or
1439	1439	22 before December 31, 2004, personal property that is donated
1440	1440	23 for disaster relief to be used in a State or federally declared
1441	1441	24 disaster area in Illinois or bordering Illinois by a
1442	1442	25 manufacturer or retailer that is registered in this State to a
1443	1443	26 corporation, society, association, foundation, or institution
1444	1444
1445	1445
1446	1446
1447	1447
1448	1448
1449	1449	HB5578 - 39 - LRB103 38815 HLH 68952 b
1450	1450
1451	1451
1452	1452	HB5578- 40 -LRB103 38815 HLH 68952 b HB5578 - 40 - LRB103 38815 HLH 68952 b
1453	1453	HB5578 - 40 - LRB103 38815 HLH 68952 b
1454	1454	1 that has been issued a sales tax exemption identification
1455	1455	2 number by the Department that assists victims of the disaster
1456	1456	3 who reside within the declared disaster area.
1457	1457	4 (18) Beginning with taxable years ending on or after
1458	1458	5 December 31, 1995 and ending with taxable years ending on or
1459	1459	6 before December 31, 2004, personal property that is used in
1460	1460	7 the performance of infrastructure repairs in this State,
1461	1461	8 including, but not limited to, municipal roads and streets,
1462	1462	9 access roads, bridges, sidewalks, waste disposal systems,
1463	1463	10 water and sewer line extensions, water distribution and
1464	1464	11 purification facilities, storm water drainage and retention
1465	1465	12 facilities, and sewage treatment facilities, resulting from a
1466	1466	13 State or federally declared disaster in Illinois or bordering
1467	1467	14 Illinois when such repairs are initiated on facilities located
1468	1468	15 in the declared disaster area within 6 months after the
1469	1469	16 disaster.
1470	1470	17 (19) Beginning July 1, 1999, game or game birds purchased
1471	1471	18 at a "game breeding and hunting preserve area" as that term is
1472	1472	19 used in the Wildlife Code. This paragraph is exempt from the
1473	1473	20 provisions of Section 3-75.
1474	1474	21 (20) A motor vehicle, as that term is defined in Section
1475	1475	22 1-146 of the Illinois Vehicle Code, that is donated to a
1476	1476	23 corporation, limited liability company, society, association,
1477	1477	24 foundation, or institution that is determined by the
1478	1478	25 Department to be organized and operated exclusively for
1479	1479	26 educational purposes. For purposes of this exemption, "a
1480	1480
1481	1481
1482	1482
1483	1483
1484	1484
1485	1485	HB5578 - 40 - LRB103 38815 HLH 68952 b
1486	1486
1487	1487
1488	1488	HB5578- 41 -LRB103 38815 HLH 68952 b HB5578 - 41 - LRB103 38815 HLH 68952 b
1489	1489	HB5578 - 41 - LRB103 38815 HLH 68952 b
1490	1490	1 corporation, limited liability company, society, association,
1491	1491	2 foundation, or institution organized and operated exclusively
1492	1492	3 for educational purposes" means all tax-supported public
1493	1493	4 schools, private schools that offer systematic instruction in
1494	1494	5 useful branches of learning by methods common to public
1495	1495	6 schools and that compare favorably in their scope and
1496	1496	7 intensity with the course of study presented in tax-supported
1497	1497	8 schools, and vocational or technical schools or institutes
1498	1498	9 organized and operated exclusively to provide a course of
1499	1499	10 study of not less than 6 weeks duration and designed to prepare
1500	1500	11 individuals to follow a trade or to pursue a manual,
1501	1501	12 technical, mechanical, industrial, business, or commercial
1502	1502	13 occupation.
1503	1503	14 (21) Beginning January 1, 2000, personal property,
1504	1504	15 including food, purchased through fundraising events for the
1505	1505	16 benefit of a public or private elementary or secondary school,
1506	1506	17 a group of those schools, or one or more school districts if
1507	1507	18 the events are sponsored by an entity recognized by the school
1508	1508	19 district that consists primarily of volunteers and includes
1509	1509	20 parents and teachers of the school children. This paragraph
1510	1510	21 does not apply to fundraising events (i) for the benefit of
1511	1511	22 private home instruction or (ii) for which the fundraising
1512	1512	23 entity purchases the personal property sold at the events from
1513	1513	24 another individual or entity that sold the property for the
1514	1514	25 purpose of resale by the fundraising entity and that profits
1515	1515	26 from the sale to the fundraising entity. This paragraph is
1516	1516
1517	1517
1518	1518
1519	1519
1520	1520
1521	1521	HB5578 - 41 - LRB103 38815 HLH 68952 b
1522	1522
1523	1523
1524	1524	HB5578- 42 -LRB103 38815 HLH 68952 b HB5578 - 42 - LRB103 38815 HLH 68952 b
1525	1525	HB5578 - 42 - LRB103 38815 HLH 68952 b
1526	1526	1 exempt from the provisions of Section 3-75.
1527	1527	2 (22) Beginning January 1, 2000 and through December 31,
1528	1528	3 2001, new or used automatic vending machines that prepare and
1529	1529	4 serve hot food and beverages, including coffee, soup, and
1530	1530	5 other items, and replacement parts for these machines.
1531	1531	6 Beginning January 1, 2002 and through June 30, 2003, machines
1532	1532	7 and parts for machines used in commercial, coin-operated
1533	1533	8 amusement and vending business if a use or occupation tax is
1534	1534	9 paid on the gross receipts derived from the use of the
1535	1535	10 commercial, coin-operated amusement and vending machines. This
1536	1536	11 paragraph is exempt from the provisions of Section 3-75.
1537	1537	12 (23) Beginning August 23, 2001 and through June 30, 2016,
1538	1538	13 food for human consumption that is to be consumed off the
1539	1539	14 premises where it is sold (other than alcoholic beverages,
1540	1540	15 soft drinks, and food that has been prepared for immediate
1541	1541	16 consumption) and prescription and nonprescription medicines,
1542	1542	17 drugs, medical appliances, and insulin, urine testing
1543	1543	18 materials, syringes, and needles used by diabetics, for human
1544	1544	19 use, when purchased for use by a person receiving medical
1545	1545	20 assistance under Article V of the Illinois Public Aid Code who
1546	1546	21 resides in a licensed long-term care facility, as defined in
1547	1547	22 the Nursing Home Care Act, or in a licensed facility as defined
1548	1548	23 in the ID/DD Community Care Act, the MC/DD Act, or the
1549	1549	24 Specialized Mental Health Rehabilitation Act of 2013.
1550	1550	25 (24) Beginning on August 2, 2001 (the effective date of
1551	1551	26 Public Act 92-227), computers and communications equipment
1552	1552
1553	1553
1554	1554
1555	1555
1556	1556
1557	1557	HB5578 - 42 - LRB103 38815 HLH 68952 b
1558	1558
1559	1559
1560	1560	HB5578- 43 -LRB103 38815 HLH 68952 b HB5578 - 43 - LRB103 38815 HLH 68952 b
1561	1561	HB5578 - 43 - LRB103 38815 HLH 68952 b
1562	1562	1 utilized for any hospital purpose and equipment used in the
1563	1563	2 diagnosis, analysis, or treatment of hospital patients
1564	1564	3 purchased by a lessor who leases the equipment, under a lease
1565	1565	4 of one year or longer executed or in effect at the time the
1566	1566	5 lessor would otherwise be subject to the tax imposed by this
1567	1567	6 Act, to a hospital that has been issued an active tax exemption
1568	1568	7 identification number by the Department under Section 1g of
1569	1569	8 the Retailers' Occupation Tax Act. If the equipment is leased
1570	1570	9 in a manner that does not qualify for this exemption or is used
1571	1571	10 in any other nonexempt manner, the lessor shall be liable for
1572	1572	11 the tax imposed under this Act or the Use Tax Act, as the case
1573	1573	12 may be, based on the fair market value of the property at the
1574	1574	13 time the nonqualifying use occurs. No lessor shall collect or
1575	1575	14 attempt to collect an amount (however designated) that
1576	1576	15 purports to reimburse that lessor for the tax imposed by this
1577	1577	16 Act or the Use Tax Act, as the case may be, if the tax has not
1578	1578	17 been paid by the lessor. If a lessor improperly collects any
1579	1579	18 such amount from the lessee, the lessee shall have a legal
1580	1580	19 right to claim a refund of that amount from the lessor. If,
1581	1581	20 however, that amount is not refunded to the lessee for any
1582	1582	21 reason, the lessor is liable to pay that amount to the
1583	1583	22 Department. This paragraph is exempt from the provisions of
1584	1584	23 Section 3-75.
1585	1585	24 (25) Beginning on August 2, 2001 (the effective date of
1586	1586	25 Public Act 92-227), personal property purchased by a lessor
1587	1587	26 who leases the property, under a lease of one year or longer
1588	1588
1589	1589
1590	1590
1591	1591
1592	1592
1593	1593	HB5578 - 43 - LRB103 38815 HLH 68952 b
1594	1594
1595	1595
1596	1596	HB5578- 44 -LRB103 38815 HLH 68952 b HB5578 - 44 - LRB103 38815 HLH 68952 b
1597	1597	HB5578 - 44 - LRB103 38815 HLH 68952 b
1598	1598	1 executed or in effect at the time the lessor would otherwise be
1599	1599	2 subject to the tax imposed by this Act, to a governmental body
1600	1600	3 that has been issued an active tax exemption identification
1601	1601	4 number by the Department under Section 1g of the Retailers'
1602	1602	5 Occupation Tax Act. If the property is leased in a manner that
1603	1603	6 does not qualify for this exemption or is used in any other
1604	1604	7 nonexempt manner, the lessor shall be liable for the tax
1605	1605	8 imposed under this Act or the Use Tax Act, as the case may be,
1606	1606	9 based on the fair market value of the property at the time the
1607	1607	10 nonqualifying use occurs. No lessor shall collect or attempt
1608	1608	11 to collect an amount (however designated) that purports to
1609	1609	12 reimburse that lessor for the tax imposed by this Act or the
1610	1610	13 Use Tax Act, as the case may be, if the tax has not been paid
1611	1611	14 by the lessor. If a lessor improperly collects any such amount
1612	1612	15 from the lessee, the lessee shall have a legal right to claim a
1613	1613	16 refund of that amount from the lessor. If, however, that
1614	1614	17 amount is not refunded to the lessee for any reason, the lessor
1615	1615	18 is liable to pay that amount to the Department. This paragraph
1616	1616	19 is exempt from the provisions of Section 3-75.
1617	1617	20 (26) Beginning January 1, 2008, tangible personal property
1618	1618	21 used in the construction or maintenance of a community water
1619	1619	22 supply, as defined under Section 3.145 of the Environmental
1620	1620	23 Protection Act, that is operated by a not-for-profit
1621	1621	24 corporation that holds a valid water supply permit issued
1622	1622	25 under Title IV of the Environmental Protection Act. This
1623	1623	26 paragraph is exempt from the provisions of Section 3-75.
1624	1624
1625	1625
1626	1626
1627	1627
1628	1628
1629	1629	HB5578 - 44 - LRB103 38815 HLH 68952 b
1630	1630
1631	1631
1632	1632	HB5578- 45 -LRB103 38815 HLH 68952 b HB5578 - 45 - LRB103 38815 HLH 68952 b
1633	1633	HB5578 - 45 - LRB103 38815 HLH 68952 b
1634	1634	1 (27) Beginning January 1, 2010 and continuing through
1635	1635	2 December 31, 2029, materials, parts, equipment, components,
1636	1636	3 and furnishings incorporated into or upon an aircraft as part
1637	1637	4 of the modification, refurbishment, completion, replacement,
1638	1638	5 repair, or maintenance of the aircraft. This exemption
1639	1639	6 includes consumable supplies used in the modification,
1640	1640	7 refurbishment, completion, replacement, repair, and
1641	1641	8 maintenance of aircraft. However, until January 1, 2024, this
1642	1642	9 exemption excludes any materials, parts, equipment,
1643	1643	10 components, and consumable supplies used in the modification,
1644	1644	11 replacement, repair, and maintenance of aircraft engines or
1645	1645	12 power plants, whether such engines or power plants are
1646	1646	13 installed or uninstalled upon any such aircraft. "Consumable
1647	1647	14 supplies" include, but are not limited to, adhesive, tape,
1648	1648	15 sandpaper, general purpose lubricants, cleaning solution,
1649	1649	16 latex gloves, and protective films.
1650	1650	17 Beginning January 1, 2010 and continuing through December
1651	1651	18 31, 2023, this exemption applies only to the use of qualifying
1652	1652	19 tangible personal property transferred incident to the
1653	1653	20 modification, refurbishment, completion, replacement, repair,
1654	1654	21 or maintenance of aircraft by persons who (i) hold an Air
1655	1655	22 Agency Certificate and are empowered to operate an approved
1656	1656	23 repair station by the Federal Aviation Administration, (ii)
1657	1657	24 have a Class IV Rating, and (iii) conduct operations in
1658	1658	25 accordance with Part 145 of the Federal Aviation Regulations.
1659	1659	26 From January 1, 2024 through December 31, 2029, this exemption
1660	1660
1661	1661
1662	1662
1663	1663
1664	1664
1665	1665	HB5578 - 45 - LRB103 38815 HLH 68952 b
1666	1666
1667	1667
1668	1668	HB5578- 46 -LRB103 38815 HLH 68952 b HB5578 - 46 - LRB103 38815 HLH 68952 b
1669	1669	HB5578 - 46 - LRB103 38815 HLH 68952 b
1670	1670	1 applies only to the use of qualifying tangible personal
1671	1671	2 property by: (A) persons who modify, refurbish, complete,
1672	1672	3 repair, replace, or maintain aircraft and who (i) hold an Air
1673	1673	4 Agency Certificate and are empowered to operate an approved
1674	1674	5 repair station by the Federal Aviation Administration, (ii)
1675	1675	6 have a Class IV Rating, and (iii) conduct operations in
1676	1676	7 accordance with Part 145 of the Federal Aviation Regulations;
1677	1677	8 and (B) persons who engage in the modification, replacement,
1678	1678	9 repair, and maintenance of aircraft engines or power plants
1679	1679	10 without regard to whether or not those persons meet the
1680	1680	11 qualifications of item (A).
1681	1681	12 The exemption does not include aircraft operated by a
1682	1682	13 commercial air carrier providing scheduled passenger air
1683	1683	14 service pursuant to authority issued under Part 121 or Part
1684	1684	15 129 of the Federal Aviation Regulations. The changes made to
1685	1685	16 this paragraph (27) by Public Act 98-534 are declarative of
1686	1686	17 existing law. It is the intent of the General Assembly that the
1687	1687	18 exemption under this paragraph (27) applies continuously from
1688	1688	19 January 1, 2010 through December 31, 2024; however, no claim
1689	1689	20 for credit or refund is allowed for taxes paid as a result of
1690	1690	21 the disallowance of this exemption on or after January 1, 2015
1691	1691	22 and prior to February 5, 2020 (the effective date of Public Act
1692	1692	23 101-629).
1693	1693	24 (28) Tangible personal property purchased by a
1694	1694	25 public-facilities corporation, as described in Section
1695	1695	26 11-65-10 of the Illinois Municipal Code, for purposes of
1696	1696
1697	1697
1698	1698
1699	1699
1700	1700
1701	1701	HB5578 - 46 - LRB103 38815 HLH 68952 b
1702	1702
1703	1703
1704	1704	HB5578- 47 -LRB103 38815 HLH 68952 b HB5578 - 47 - LRB103 38815 HLH 68952 b
1705	1705	HB5578 - 47 - LRB103 38815 HLH 68952 b
1706	1706	1 constructing or furnishing a municipal convention hall, but
1707	1707	2 only if the legal title to the municipal convention hall is
1708	1708	3 transferred to the municipality without any further
1709	1709	4 consideration by or on behalf of the municipality at the time
1710	1710	5 of the completion of the municipal convention hall or upon the
1711	1711	6 retirement or redemption of any bonds or other debt
1712	1712	7 instruments issued by the public-facilities corporation in
1713	1713	8 connection with the development of the municipal convention
1714	1714	9 hall. This exemption includes existing public-facilities
1715	1715	10 corporations as provided in Section 11-65-25 of the Illinois
1716	1716	11 Municipal Code. This paragraph is exempt from the provisions
1717	1717	12 of Section 3-75.
1718	1718	13 (29) Beginning January 1, 2017 and through December 31,
1719	1719	14 2026, menstrual pads, tampons, and menstrual cups.
1720	1720	15 (30) Tangible personal property transferred to a purchaser
1721	1721	16 who is exempt from the tax imposed by this Act by operation of
1722	1722	17 federal law. This paragraph is exempt from the provisions of
1723	1723	18 Section 3-75.
1724	1724	19 (31) Qualified tangible personal property used in the
1725	1725	20 construction or operation of a data center that has been
1726	1726	21 granted a certificate of exemption by the Department of
1727	1727	22 Commerce and Economic Opportunity, whether that tangible
1728	1728	23 personal property is purchased by the owner, operator, or
1729	1729	24 tenant of the data center or by a contractor or subcontractor
1730	1730	25 of the owner, operator, or tenant. Data centers that would
1731	1731	26 have qualified for a certificate of exemption prior to January
1732	1732
1733	1733
1734	1734
1735	1735
1736	1736
1737	1737	HB5578 - 47 - LRB103 38815 HLH 68952 b
1738	1738
1739	1739
1740	1740	HB5578- 48 -LRB103 38815 HLH 68952 b HB5578 - 48 - LRB103 38815 HLH 68952 b
1741	1741	HB5578 - 48 - LRB103 38815 HLH 68952 b
1742	1742	1 1, 2020 had Public Act 101-31 been in effect, may apply for and
1743	1743	2 obtain an exemption for subsequent purchases of computer
1744	1744	3 equipment or enabling software purchased or leased to upgrade,
1745	1745	4 supplement, or replace computer equipment or enabling software
1746	1746	5 purchased or leased in the original investment that would have
1747	1747	6 qualified.
1748	1748	7 The Department of Commerce and Economic Opportunity shall
1749	1749	8 grant a certificate of exemption under this item (31) to
1750	1750	9 qualified data centers as defined by Section 605-1025 of the
1751	1751	10 Department of Commerce and Economic Opportunity Law of the
1752	1752	11 Civil Administrative Code of Illinois.
1753	1753	12 For the purposes of this item (31):
1754	1754	13 "Data center" means a building or a series of
1755	1755	14 buildings rehabilitated or constructed to house working
1756	1756	15 servers in one physical location or multiple sites within
1757	1757	16 the State of Illinois.
1758	1758	17 "Qualified tangible personal property" means:
1759	1759	18 electrical systems and equipment; climate control and
1760	1760	19 chilling equipment and systems; mechanical systems and
1761	1761	20 equipment; monitoring and secure systems; emergency
1762	1762	21 generators; hardware; computers; servers; data storage
1763	1763	22 devices; network connectivity equipment; racks; cabinets;
1764	1764	23 telecommunications cabling infrastructure; raised floor
1765	1765	24 systems; peripheral components or systems; software;
1766	1766	25 mechanical, electrical, or plumbing systems; battery
1767	1767	26 systems; cooling systems and towers; temperature control
1768	1768
1769	1769
1770	1770
1771	1771
1772	1772
1773	1773	HB5578 - 48 - LRB103 38815 HLH 68952 b
1774	1774
1775	1775
1776	1776	HB5578- 49 -LRB103 38815 HLH 68952 b HB5578 - 49 - LRB103 38815 HLH 68952 b
1777	1777	HB5578 - 49 - LRB103 38815 HLH 68952 b
1778	1778	1 systems; other cabling; and other data center
1779	1779	2 infrastructure equipment and systems necessary to operate
1780	1780	3 qualified tangible personal property, including fixtures;
1781	1781	4 and component parts of any of the foregoing, including
1782	1782	5 installation, maintenance, repair, refurbishment, and
1783	1783	6 replacement of qualified tangible personal property to
1784	1784	7 generate, transform, transmit, distribute, or manage
1785	1785	8 electricity necessary to operate qualified tangible
1786	1786	9 personal property; and all other tangible personal
1787	1787	10 property that is essential to the operations of a computer
1788	1788	11 data center. The term "qualified tangible personal
1789	1789	12 property" also includes building materials physically
1790	1790	13 incorporated into in to the qualifying data center. To
1791	1791	14 document the exemption allowed under this Section, the
1792	1792	15 retailer must obtain from the purchaser a copy of the
1793	1793	16 certificate of eligibility issued by the Department of
1794	1794	17 Commerce and Economic Opportunity.
1795	1795	18 This item (31) is exempt from the provisions of Section
1796	1796	19 3-75.
1797	1797	20 (32) Beginning July 1, 2022, breast pumps, breast pump
1798	1798	21 collection and storage supplies, and breast pump kits. This
1799	1799	22 item (32) is exempt from the provisions of Section 3-75. As
1800	1800	23 used in this item (32):
1801	1801	24 "Breast pump" means an electrically controlled or
1802	1802	25 manually controlled pump device designed or marketed to be
1803	1803	26 used to express milk from a human breast during lactation,
1804	1804
1805	1805
1806	1806
1807	1807
1808	1808
1809	1809	HB5578 - 49 - LRB103 38815 HLH 68952 b
1810	1810
1811	1811
1812	1812	HB5578- 50 -LRB103 38815 HLH 68952 b HB5578 - 50 - LRB103 38815 HLH 68952 b
1813	1813	HB5578 - 50 - LRB103 38815 HLH 68952 b
1814	1814	1 including the pump device and any battery, AC adapter, or
1815	1815	2 other power supply unit that is used to power the pump
1816	1816	3 device and is packaged and sold with the pump device at the
1817	1817	4 time of sale.
1818	1818	5 "Breast pump collection and storage supplies" means
1819	1819	6 items of tangible personal property designed or marketed
1820	1820	7 to be used in conjunction with a breast pump to collect
1821	1821	8 milk expressed from a human breast and to store collected
1822	1822	9 milk until it is ready for consumption.
1823	1823	10 "Breast pump collection and storage supplies"
1824	1824	11 includes, but is not limited to: breast shields and breast
1825	1825	12 shield connectors; breast pump tubes and tubing adapters;
1826	1826	13 breast pump valves and membranes; backflow protectors and
1827	1827	14 backflow protector adaptors; bottles and bottle caps
1828	1828	15 specific to the operation of the breast pump; and breast
1829	1829	16 milk storage bags.
1830	1830	17 "Breast pump collection and storage supplies" does not
1831	1831	18 include: (1) bottles and bottle caps not specific to the
1832	1832	19 operation of the breast pump; (2) breast pump travel bags
1833	1833	20 and other similar carrying accessories, including ice
1834	1834	21 packs, labels, and other similar products; (3) breast pump
1835	1835	22 cleaning supplies; (4) nursing bras, bra pads, breast
1836	1836	23 shells, and other similar products; and (5) creams,
1837	1837	24 ointments, and other similar products that relieve
1838	1838	25 breastfeeding-related symptoms or conditions of the
1839	1839	26 breasts or nipples, unless sold as part of a breast pump
1840	1840
1841	1841
1842	1842
1843	1843
1844	1844
1845	1845	HB5578 - 50 - LRB103 38815 HLH 68952 b
1846	1846
1847	1847
1848	1848	HB5578- 51 -LRB103 38815 HLH 68952 b HB5578 - 51 - LRB103 38815 HLH 68952 b
1849	1849	HB5578 - 51 - LRB103 38815 HLH 68952 b
1850	1850	1 kit that is pre-packaged by the breast pump manufacturer
1851	1851	2 or distributor.
1852	1852	3 "Breast pump kit" means a kit that: (1) contains no
1853	1853	4 more than a breast pump, breast pump collection and
1854	1854	5 storage supplies, a rechargeable battery for operating the
1855	1855	6 breast pump, a breastmilk cooler, bottle stands, ice
1856	1856	7 packs, and a breast pump carrying case; and (2) is
1857	1857	8 pre-packaged as a breast pump kit by the breast pump
1858	1858	9 manufacturer or distributor.
1859	1859	10 (33) Tangible personal property sold by or on behalf of
1860	1860	11 the State Treasurer pursuant to the Revised Uniform Unclaimed
1861	1861	12 Property Act. This item (33) is exempt from the provisions of
1862	1862	13 Section 3-75.
1863	1863	14 (34) Beginning on January 1, 2024, tangible personal
1864	1864	15 property purchased by an active duty member of the armed
1865	1865	16 forces of the United States who presents valid military
1866	1866	17 identification and purchases the property using a form of
1867	1867	18 payment where the federal government is the payor. The member
1868	1868	19 of the armed forces must complete, at the point of sale, a form
1869	1869	20 prescribed by the Department of Revenue documenting that the
1870	1870	21 transaction is eligible for the exemption under this
1871	1871	22 paragraph. Retailers must keep the form as documentation of
1872	1872	23 the exemption in their records for a period of not less than 6
1873	1873	24 years. "Armed forces of the United States" means the United
1874	1874	25 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1875	1875	26 This paragraph is exempt from the provisions of Section 3-75.
1876	1876
1877	1877
1878	1878
1879	1879
1880	1880
1881	1881	HB5578 - 51 - LRB103 38815 HLH 68952 b
1882	1882
1883	1883
1884	1884	HB5578- 52 -LRB103 38815 HLH 68952 b HB5578 - 52 - LRB103 38815 HLH 68952 b
1885	1885	HB5578 - 52 - LRB103 38815 HLH 68952 b
1886	1886	1 (35) Beginning on January 1, 2025, medical appliances and
1887	1887	2 products that are classified as Class III medical devices by
1888	1888	3 the United States Food and Drug Administration and that are
1889	1889	4 used for cancer treatment pursuant to a prescription, as well
1890	1890	5 as any accessories and components related to those appliances
1891	1891	6 and devices. As used in this paragraph, "medical appliance"
1892	1892	7 means a product that was classified as a medical appliance and
1893	1893	8 was subject to a 1% rate of tax immediately prior to the
1894	1894	9 effective date of this amendatory Act of the 103rd General
1895	1895	10 Assembly, including, but not limited to, devices used to
1896	1896	11 provide advanced life support services, as defined by Section
1897	1897	12 3.10 of the Emergency Medical Services (EMS) Systems Act, and
1898	1898	13 any other items designated as medical appliances by the
1899	1899	14 Department by rule. This paragraph is exempt from the
1900	1900	15 provisions of Section 3-75.
1901	1901	16 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1902	1902	17 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1903	1903	18 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1904	1904	19 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1905	1905	20 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1906	1906	21 revised 12-12-23.)
1907	1907	22 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
1908	1908	23 Sec. 3-10. Rate of tax. Unless otherwise provided in this
1909	1909	24 Section, the tax imposed by this Act is at the rate of 6.25% of
1910	1910	25 the selling price of tangible personal property transferred as
1911	1911
1912	1912
1913	1913
1914	1914
1915	1915
1916	1916	HB5578 - 52 - LRB103 38815 HLH 68952 b
1917	1917
1918	1918
1919	1919	HB5578- 53 -LRB103 38815 HLH 68952 b HB5578 - 53 - LRB103 38815 HLH 68952 b
1920	1920	HB5578 - 53 - LRB103 38815 HLH 68952 b
1921	1921	1 an incident to the sale of service, but, for the purpose of
1922	1922	2 computing this tax, in no event shall the selling price be less
1923	1923	3 than the cost price of the property to the serviceman.
1924	1924	4 Beginning on July 1, 2000 and through December 31, 2000,
1925	1925	5 with respect to motor fuel, as defined in Section 1.1 of the
1926	1926	6 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1927	1927	7 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1928	1928	8 With respect to gasohol, as defined in the Use Tax Act, the
1929	1929	9 tax imposed by this Act applies to (i) 70% of the selling price
1930	1930	10 of property transferred as an incident to the sale of service
1931	1931	11 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
1932	1932	12 of the selling price of property transferred as an incident to
1933	1933	13 the sale of service on or after July 1, 2003 and on or before
1934	1934	14 July 1, 2017, (iii) 100% of the selling price of property
1935	1935	15 transferred as an incident to the sale of service after July 1,
1936	1936	16 2017 and before January 1, 2024, (iv) 90% of the selling price
1937	1937	17 of property transferred as an incident to the sale of service
1938	1938	18 on or after January 1, 2024 and on or before December 31, 2028,
1939	1939	19 and (v) 100% of the selling price of property transferred as an
1940	1940	20 incident to the sale of service after December 31, 2028. If, at
1941	1941	21 any time, however, the tax under this Act on sales of gasohol,
1942	1942	22 as defined in the Use Tax Act, is imposed at the rate of 1.25%,
1943	1943	23 then the tax imposed by this Act applies to 100% of the
1944	1944	24 proceeds of sales of gasohol made during that time.
1945	1945	25 With respect to mid-range ethanol blends, as defined in
1946	1946	26 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
1947	1947
1948	1948
1949	1949
1950	1950
1951	1951
1952	1952	HB5578 - 53 - LRB103 38815 HLH 68952 b
1953	1953
1954	1954
1955	1955	HB5578- 54 -LRB103 38815 HLH 68952 b HB5578 - 54 - LRB103 38815 HLH 68952 b
1956	1956	HB5578 - 54 - LRB103 38815 HLH 68952 b
1957	1957	1 applies to (i) 80% of the selling price of property
1958	1958	2 transferred as an incident to the sale of service on or after
1959	1959	3 January 1, 2024 and on or before December 31, 2028 and (ii)
1960	1960	4 100% of the selling price of property transferred as an
1961	1961	5 incident to the sale of service after December 31, 2028. If, at
1962	1962	6 any time, however, the tax under this Act on sales of mid-range
1963	1963	7 ethanol blends is imposed at the rate of 1.25%, then the tax
1964	1964	8 imposed by this Act applies to 100% of the selling price of
1965	1965	9 mid-range ethanol blends transferred as an incident to the
1966	1966	10 sale of service during that time.
1967	1967	11 With respect to majority blended ethanol fuel, as defined
1968	1968	12 in the Use Tax Act, the tax imposed by this Act does not apply
1969	1969	13 to the selling price of property transferred as an incident to
1970	1970	14 the sale of service on or after July 1, 2003 and on or before
1971	1971	15 December 31, 2028 but applies to 100% of the selling price
1972	1972	16 thereafter.
1973	1973	17 With respect to biodiesel blends, as defined in the Use
1974	1974	18 Tax Act, with no less than 1% and no more than 10% biodiesel,
1975	1975	19 the tax imposed by this Act applies to (i) 80% of the selling
1976	1976	20 price of property transferred as an incident to the sale of
1977	1977	21 service on or after July 1, 2003 and on or before December 31,
1978	1978	22 2018 and (ii) 100% of the proceeds of the selling price after
1979	1979	23 December 31, 2018 and before January 1, 2024. On and after
1980	1980	24 January 1, 2024 and on or before December 31, 2030, the
1981	1981	25 taxation of biodiesel, renewable diesel, and biodiesel blends
1982	1982	26 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1983	1983
1984	1984
1985	1985
1986	1986
1987	1987
1988	1988	HB5578 - 54 - LRB103 38815 HLH 68952 b
1989	1989
1990	1990
1991	1991	HB5578- 55 -LRB103 38815 HLH 68952 b HB5578 - 55 - LRB103 38815 HLH 68952 b
1992	1992	HB5578 - 55 - LRB103 38815 HLH 68952 b
1993	1993	1 at any time, however, the tax under this Act on sales of
1994	1994	2 biodiesel blends, as defined in the Use Tax Act, with no less
1995	1995	3 than 1% and no more than 10% biodiesel is imposed at the rate
1996	1996	4 of 1.25%, then the tax imposed by this Act applies to 100% of
1997	1997	5 the proceeds of sales of biodiesel blends with no less than 1%
1998	1998	6 and no more than 10% biodiesel made during that time.
1999	1999	7 With respect to biodiesel, as defined in the Use Tax Act,
2000	2000	8 and biodiesel blends, as defined in the Use Tax Act, with more
2001	2001	9 than 10% but no more than 99% biodiesel, the tax imposed by
2002	2002	10 this Act does not apply to the proceeds of the selling price of
2003	2003	11 property transferred as an incident to the sale of service on
2004	2004	12 or after July 1, 2003 and on or before December 31, 2023. On
2005	2005	13 and after January 1, 2024 and on or before December 31, 2030,
2006	2006	14 the taxation of biodiesel, renewable diesel, and biodiesel
2007	2007	15 blends shall be as provided in Section 3-5.1 of the Use Tax
2008	2008	16 Act.
2009	2009	17 At the election of any registered serviceman made for each
2010	2010	18 fiscal year, sales of service in which the aggregate annual
2011	2011	19 cost price of tangible personal property transferred as an
2012	2012	20 incident to the sales of service is less than 35%, or 75% in
2013	2013	21 the case of servicemen transferring prescription drugs or
2014	2014	22 servicemen engaged in graphic arts production, of the
2015	2015	23 aggregate annual total gross receipts from all sales of
2016	2016	24 service, the tax imposed by this Act shall be based on the
2017	2017	25 serviceman's cost price of the tangible personal property
2018	2018	26 transferred as an incident to the sale of those services.
2019	2019
2020	2020
2021	2021
2022	2022
2023	2023
2024	2024	HB5578 - 55 - LRB103 38815 HLH 68952 b
2025	2025
2026	2026
2027	2027	HB5578- 56 -LRB103 38815 HLH 68952 b HB5578 - 56 - LRB103 38815 HLH 68952 b
2028	2028	HB5578 - 56 - LRB103 38815 HLH 68952 b
2029	2029	1 Until July 1, 2022 and beginning again on July 1, 2023, the
2030	2030	2 tax shall be imposed at the rate of 1% on food prepared for
2031	2031	3 immediate consumption and transferred incident to a sale of
2032	2032	4 service subject to this Act or the Service Occupation Tax Act
2033	2033	5 by an entity licensed under the Hospital Licensing Act, the
2034	2034	6 Nursing Home Care Act, the Assisted Living and Shared Housing
2035	2035	7 Act, the ID/DD Community Care Act, the MC/DD Act, the
2036	2036	8 Specialized Mental Health Rehabilitation Act of 2013, or the
2037	2037	9 Child Care Act of 1969, or an entity that holds a permit issued
2038	2038	10 pursuant to the Life Care Facilities Act. Until July 1, 2022
2039	2039	11 and beginning again on July 1, 2023, the tax shall also be
2040	2040	12 imposed at the rate of 1% on food for human consumption that is
2041	2041	13 to be consumed off the premises where it is sold (other than
2042	2042	14 alcoholic beverages, food consisting of or infused with adult
2043	2043	15 use cannabis, soft drinks, and food that has been prepared for
2044	2044	16 immediate consumption and is not otherwise included in this
2045	2045	17 paragraph).
2046	2046	18 Beginning on July 1, 2022 and until July 1, 2023, the tax
2047	2047	19 shall be imposed at the rate of 0% on food prepared for
2048	2048	20 immediate consumption and transferred incident to a sale of
2049	2049	21 service subject to this Act or the Service Occupation Tax Act
2050	2050	22 by an entity licensed under the Hospital Licensing Act, the
2051	2051	23 Nursing Home Care Act, the Assisted Living and Shared Housing
2052	2052	24 Act, the ID/DD Community Care Act, the MC/DD Act, the
2053	2053	25 Specialized Mental Health Rehabilitation Act of 2013, or the
2054	2054	26 Child Care Act of 1969, or an entity that holds a permit issued
2055	2055
2056	2056
2057	2057
2058	2058
2059	2059
2060	2060	HB5578 - 56 - LRB103 38815 HLH 68952 b
2061	2061
2062	2062
2063	2063	HB5578- 57 -LRB103 38815 HLH 68952 b HB5578 - 57 - LRB103 38815 HLH 68952 b
2064	2064	HB5578 - 57 - LRB103 38815 HLH 68952 b
2065	2065	1 pursuant to the Life Care Facilities Act. Beginning on July 1,
2066	2066	2 2022 and until July 1, 2023, the tax shall also be imposed at
2067	2067	3 the rate of 0% on food for human consumption that is to be
2068	2068	4 consumed off the premises where it is sold (other than
2069	2069	5 alcoholic beverages, food consisting of or infused with adult
2070	2070	6 use cannabis, soft drinks, and food that has been prepared for
2071	2071	7 immediate consumption and is not otherwise included in this
2072	2072	8 paragraph).
2073	2073	9 The tax shall also be imposed at the rate of 1% on
2074	2074	10 prescription and nonprescription medicines, drugs, medical
2075	2075	11 appliances, products classified as Class III medical devices
2076	2076	12 by the United States Food and Drug Administration that are
2077	2077	13 used for cancer treatment pursuant to a prescription, as well
2078	2078	14 as any accessories and components related to those devices,
2079	2079	15 modifications to a motor vehicle for the purpose of rendering
2080	2080	16 it usable by a person with a disability, and insulin, blood
2081	2081	17 sugar testing materials, syringes, and needles used by human
2082	2082	18 diabetics (except to the extent that those items are exempt by
2083	2083	19 the Department under paragraph (35) of Section 3-5). For the
2084	2084	20 purposes of this Section, until September 1, 2009: the term
2085	2085	21 "soft drinks" means any complete, finished, ready-to-use,
2086	2086	22 non-alcoholic drink, whether carbonated or not, including, but
2087	2087	23 not limited to, soda water, cola, fruit juice, vegetable
2088	2088	24 juice, carbonated water, and all other preparations commonly
2089	2089	25 known as soft drinks of whatever kind or description that are
2090	2090	26 contained in any closed or sealed bottle, can, carton, or
2091	2091
2092	2092
2093	2093
2094	2094
2095	2095
2096	2096	HB5578 - 57 - LRB103 38815 HLH 68952 b
2097	2097
2098	2098
2099	2099	HB5578- 58 -LRB103 38815 HLH 68952 b HB5578 - 58 - LRB103 38815 HLH 68952 b
2100	2100	HB5578 - 58 - LRB103 38815 HLH 68952 b
2101	2101	1 container, regardless of size; but "soft drinks" does not
2102	2102	2 include coffee, tea, non-carbonated water, infant formula,
2103	2103	3 milk or milk products as defined in the Grade A Pasteurized
2104	2104	4 Milk and Milk Products Act, or drinks containing 50% or more
2105	2105	5 natural fruit or vegetable juice.
2106	2106	6 Notwithstanding any other provisions of this Act,
2107	2107	7 beginning September 1, 2009, "soft drinks" means non-alcoholic
2108	2108	8 beverages that contain natural or artificial sweeteners. "Soft
2109	2109	9 drinks" does not include beverages that contain milk or milk
2110	2110	10 products, soy, rice or similar milk substitutes, or greater
2111	2111	11 than 50% of vegetable or fruit juice by volume.
2112	2112	12 Until August 1, 2009, and notwithstanding any other
2113	2113	13 provisions of this Act, "food for human consumption that is to
2114	2114	14 be consumed off the premises where it is sold" includes all
2115	2115	15 food sold through a vending machine, except soft drinks and
2116	2116	16 food products that are dispensed hot from a vending machine,
2117	2117	17 regardless of the location of the vending machine. Beginning
2118	2118	18 August 1, 2009, and notwithstanding any other provisions of
2119	2119	19 this Act, "food for human consumption that is to be consumed
2120	2120	20 off the premises where it is sold" includes all food sold
2121	2121	21 through a vending machine, except soft drinks, candy, and food
2122	2122	22 products that are dispensed hot from a vending machine,
2123	2123	23 regardless of the location of the vending machine.
2124	2124	24 Notwithstanding any other provisions of this Act,
2125	2125	25 beginning September 1, 2009, "food for human consumption that
2126	2126	26 is to be consumed off the premises where it is sold" does not
2127	2127
2128	2128
2129	2129
2130	2130
2131	2131
2132	2132	HB5578 - 58 - LRB103 38815 HLH 68952 b
2133	2133
2134	2134
2135	2135	HB5578- 59 -LRB103 38815 HLH 68952 b HB5578 - 59 - LRB103 38815 HLH 68952 b
2136	2136	HB5578 - 59 - LRB103 38815 HLH 68952 b
2137	2137	1 include candy. For purposes of this Section, "candy" means a
2138	2138	2 preparation of sugar, honey, or other natural or artificial
2139	2139	3 sweeteners in combination with chocolate, fruits, nuts or
2140	2140	4 other ingredients or flavorings in the form of bars, drops, or
2141	2141	5 pieces. "Candy" does not include any preparation that contains
2142	2142	6 flour or requires refrigeration.
2143	2143	7 Notwithstanding any other provisions of this Act,
2144	2144	8 beginning September 1, 2009, "nonprescription medicines and
2145	2145	9 drugs" does not include grooming and hygiene products. For
2146	2146	10 purposes of this Section, "grooming and hygiene products"
2147	2147	11 includes, but is not limited to, soaps and cleaning solutions,
2148	2148	12 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2149	2149	13 lotions and screens, unless those products are available by
2150	2150	14 prescription only, regardless of whether the products meet the
2151	2151	15 definition of "over-the-counter-drugs". For the purposes of
2152	2152	16 this paragraph, "over-the-counter-drug" means a drug for human
2153	2153	17 use that contains a label that identifies the product as a drug
2154	2154	18 as required by 21 CFR 201.66. The "over-the-counter-drug"
2155	2155	19 label includes:
2156	2156	20 (A) a "Drug Facts" panel; or
2157	2157	21 (B) a statement of the "active ingredient(s)" with a
2158	2158	22 list of those ingredients contained in the compound,
2159	2159	23 substance or preparation.
2160	2160	24 Beginning on January 1, 2014 (the effective date of Public
2161	2161	25 Act 98-122), "prescription and nonprescription medicines and
2162	2162	26 drugs" includes medical cannabis purchased from a registered
2163	2163
2164	2164
2165	2165
2166	2166
2167	2167
2168	2168	HB5578 - 59 - LRB103 38815 HLH 68952 b
2169	2169
2170	2170
2171	2171	HB5578- 60 -LRB103 38815 HLH 68952 b HB5578 - 60 - LRB103 38815 HLH 68952 b
2172	2172	HB5578 - 60 - LRB103 38815 HLH 68952 b
2173	2173	1 dispensing organization under the Compassionate Use of Medical
2174	2174	2 Cannabis Program Act.
2175	2175	3 As used in this Section, "adult use cannabis" means
2176	2176	4 cannabis subject to tax under the Cannabis Cultivation
2177	2177	5 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2178	2178	6 and does not include cannabis subject to tax under the
2179	2179	7 Compassionate Use of Medical Cannabis Program Act.
2180	2180	8 If the property that is acquired from a serviceman is
2181	2181	9 acquired outside Illinois and used outside Illinois before
2182	2182	10 being brought to Illinois for use here and is taxable under
2183	2183	11 this Act, the "selling price" on which the tax is computed
2184	2184	12 shall be reduced by an amount that represents a reasonable
2185	2185	13 allowance for depreciation for the period of prior
2186	2186	14 out-of-state use.
2187	2187	15 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
2188	2188	16 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
2189	2189	17 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
2190	2190	18 103-154, eff. 6-30-23.)
2191	2191	19 Section 15. The Service Occupation Tax Act is amended by
2192	2192	20 changing Sections 3-5 and 3-10 as follows:
2193	2193	21 (35 ILCS 115/3-5)
2194	2194	22 Sec. 3-5. Exemptions. The following tangible personal
2195	2195	23 property is exempt from the tax imposed by this Act:
2196	2196	24 (1) Personal property sold by a corporation, society,
2197	2197
2198	2198
2199	2199
2200	2200
2201	2201
2202	2202	HB5578 - 60 - LRB103 38815 HLH 68952 b
2203	2203
2204	2204
2205	2205	HB5578- 61 -LRB103 38815 HLH 68952 b HB5578 - 61 - LRB103 38815 HLH 68952 b
2206	2206	HB5578 - 61 - LRB103 38815 HLH 68952 b
2207	2207	1 association, foundation, institution, or organization, other
2208	2208	2 than a limited liability company, that is organized and
2209	2209	3 operated as a not-for-profit service enterprise for the
2210	2210	4 benefit of persons 65 years of age or older if the personal
2211	2211	5 property was not purchased by the enterprise for the purpose
2212	2212	6 of resale by the enterprise.
2213	2213	7 (2) Personal property purchased by a not-for-profit
2214	2214	8 Illinois county fair association for use in conducting,
2215	2215	9 operating, or promoting the county fair.
2216	2216	10 (3) Personal property purchased by any not-for-profit arts
2217	2217	11 or cultural organization that establishes, by proof required
2218	2218	12 by the Department by rule, that it has received an exemption
2219	2219	13 under Section 501(c)(3) of the Internal Revenue Code and that
2220	2220	14 is organized and operated primarily for the presentation or
2221	2221	15 support of arts or cultural programming, activities, or
2222	2222	16 services. These organizations include, but are not limited to,
2223	2223	17 music and dramatic arts organizations such as symphony
2224	2224	18 orchestras and theatrical groups, arts and cultural service
2225	2225	19 organizations, local arts councils, visual arts organizations,
2226	2226	20 and media arts organizations. On and after July 1, 2001 (the
2227	2227	21 effective date of Public Act 92-35), however, an entity
2228	2228	22 otherwise eligible for this exemption shall not make tax-free
2229	2229	23 purchases unless it has an active identification number issued
2230	2230	24 by the Department.
2231	2231	25 (4) Legal tender, currency, medallions, or gold or silver
2232	2232	26 coinage issued by the State of Illinois, the government of the
2233	2233
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238	HB5578 - 61 - LRB103 38815 HLH 68952 b
2239	2239
2240	2240
2241	2241	HB5578- 62 -LRB103 38815 HLH 68952 b HB5578 - 62 - LRB103 38815 HLH 68952 b
2242	2242	HB5578 - 62 - LRB103 38815 HLH 68952 b
2243	2243	1 United States of America, or the government of any foreign
2244	2244	2 country, and bullion.
2245	2245	3 (5) Until July 1, 2003 and beginning again on September 1,
2246	2246	4 2004 through August 30, 2014, graphic arts machinery and
2247	2247	5 equipment, including repair and replacement parts, both new
2248	2248	6 and used, and including that manufactured on special order or
2249	2249	7 purchased for lease, certified by the purchaser to be used
2250	2250	8 primarily for graphic arts production. Equipment includes
2251	2251	9 chemicals or chemicals acting as catalysts but only if the
2252	2252	10 chemicals or chemicals acting as catalysts effect a direct and
2253	2253	11 immediate change upon a graphic arts product. Beginning on
2254	2254	12 July 1, 2017, graphic arts machinery and equipment is included
2255	2255	13 in the manufacturing and assembling machinery and equipment
2256	2256	14 exemption under Section 2 of this Act.
2257	2257	15 (6) Personal property sold by a teacher-sponsored student
2258	2258	16 organization affiliated with an elementary or secondary school
2259	2259	17 located in Illinois.
2260	2260	18 (7) Farm machinery and equipment, both new and used,
2261	2261	19 including that manufactured on special order, certified by the
2262	2262	20 purchaser to be used primarily for production agriculture or
2263	2263	21 State or federal agricultural programs, including individual
2264	2264	22 replacement parts for the machinery and equipment, including
2265	2265	23 machinery and equipment purchased for lease, and including
2266	2266	24 implements of husbandry defined in Section 1-130 of the
2267	2267	25 Illinois Vehicle Code, farm machinery and agricultural
2268	2268	26 chemical and fertilizer spreaders, and nurse wagons required
2269	2269
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274	HB5578 - 62 - LRB103 38815 HLH 68952 b
2275	2275
2276	2276
2277	2277	HB5578- 63 -LRB103 38815 HLH 68952 b HB5578 - 63 - LRB103 38815 HLH 68952 b
2278	2278	HB5578 - 63 - LRB103 38815 HLH 68952 b
2279	2279	1 to be registered under Section 3-809 of the Illinois Vehicle
2280	2280	2 Code, but excluding other motor vehicles required to be
2281	2281	3 registered under the Illinois Vehicle Code. Horticultural
2282	2282	4 polyhouses or hoop houses used for propagating, growing, or
2283	2283	5 overwintering plants shall be considered farm machinery and
2284	2284	6 equipment under this item (7). Agricultural chemical tender
2285	2285	7 tanks and dry boxes shall include units sold separately from a
2286	2286	8 motor vehicle required to be licensed and units sold mounted
2287	2287	9 on a motor vehicle required to be licensed if the selling price
2288	2288	10 of the tender is separately stated.
2289	2289	11 Farm machinery and equipment shall include precision
2290	2290	12 farming equipment that is installed or purchased to be
2291	2291	13 installed on farm machinery and equipment, including, but not
2292	2292	14 limited to, tractors, harvesters, sprayers, planters, seeders,
2293	2293	15 or spreaders. Precision farming equipment includes, but is not
2294	2294	16 limited to, soil testing sensors, computers, monitors,
2295	2295	17 software, global positioning and mapping systems, and other
2296	2296	18 such equipment.
2297	2297	19 Farm machinery and equipment also includes computers,
2298	2298	20 sensors, software, and related equipment used primarily in the
2299	2299	21 computer-assisted operation of production agriculture
2300	2300	22 facilities, equipment, and activities such as, but not limited
2301	2301	23 to, the collection, monitoring, and correlation of animal and
2302	2302	24 crop data for the purpose of formulating animal diets and
2303	2303	25 agricultural chemicals.
2304	2304	26 Beginning on January 1, 2024, farm machinery and equipment
2305	2305
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310	HB5578 - 63 - LRB103 38815 HLH 68952 b
2311	2311
2312	2312
2313	2313	HB5578- 64 -LRB103 38815 HLH 68952 b HB5578 - 64 - LRB103 38815 HLH 68952 b
2314	2314	HB5578 - 64 - LRB103 38815 HLH 68952 b
2315	2315	1 also includes electrical power generation equipment used
2316	2316	2 primarily for production agriculture.
2317	2317	3 This item (7) is exempt from the provisions of Section
2318	2318	4 3-55.
2319	2319	5 (8) Until June 30, 2013, fuel and petroleum products sold
2320	2320	6 to or used by an air common carrier, certified by the carrier
2321	2321	7 to be used for consumption, shipment, or storage in the
2322	2322	8 conduct of its business as an air common carrier, for a flight
2323	2323	9 destined for or returning from a location or locations outside
2324	2324	10 the United States without regard to previous or subsequent
2325	2325	11 domestic stopovers.
2326	2326	12 Beginning July 1, 2013, fuel and petroleum products sold
2327	2327	13 to or used by an air carrier, certified by the carrier to be
2328	2328	14 used for consumption, shipment, or storage in the conduct of
2329	2329	15 its business as an air common carrier, for a flight that (i) is
2330	2330	16 engaged in foreign trade or is engaged in trade between the
2331	2331	17 United States and any of its possessions and (ii) transports
2332	2332	18 at least one individual or package for hire from the city of
2333	2333	19 origination to the city of final destination on the same
2334	2334	20 aircraft, without regard to a change in the flight number of
2335	2335	21 that aircraft.
2336	2336	22 (9) Proceeds of mandatory service charges separately
2337	2337	23 stated on customers' bills for the purchase and consumption of
2338	2338	24 food and beverages, to the extent that the proceeds of the
2339	2339	25 service charge are in fact turned over as tips or as a
2340	2340	26 substitute for tips to the employees who participate directly
2341	2341
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346	HB5578 - 64 - LRB103 38815 HLH 68952 b
2347	2347
2348	2348
2349	2349	HB5578- 65 -LRB103 38815 HLH 68952 b HB5578 - 65 - LRB103 38815 HLH 68952 b
2350	2350	HB5578 - 65 - LRB103 38815 HLH 68952 b
2351	2351	1 in preparing, serving, hosting or cleaning up the food or
2352	2352	2 beverage function with respect to which the service charge is
2353	2353	3 imposed.
2354	2354	4 (10) Until July 1, 2003, oil field exploration, drilling,
2355	2355	5 and production equipment, including (i) rigs and parts of
2356	2356	6 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2357	2357	7 pipe and tubular goods, including casing and drill strings,
2358	2358	8 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2359	2359	9 lines, (v) any individual replacement part for oil field
2360	2360	10 exploration, drilling, and production equipment, and (vi)
2361	2361	11 machinery and equipment purchased for lease; but excluding
2362	2362	12 motor vehicles required to be registered under the Illinois
2363	2363	13 Vehicle Code.
2364	2364	14 (11) Photoprocessing machinery and equipment, including
2365	2365	15 repair and replacement parts, both new and used, including
2366	2366	16 that manufactured on special order, certified by the purchaser
2367	2367	17 to be used primarily for photoprocessing, and including
2368	2368	18 photoprocessing machinery and equipment purchased for lease.
2369	2369	19 (12) Until July 1, 2028, coal and aggregate exploration,
2370	2370	20 mining, off-highway hauling, processing, maintenance, and
2371	2371	21 reclamation equipment, including replacement parts and
2372	2372	22 equipment, and including equipment purchased for lease, but
2373	2373	23 excluding motor vehicles required to be registered under the
2374	2374	24 Illinois Vehicle Code. The changes made to this Section by
2375	2375	25 Public Act 97-767 apply on and after July 1, 2003, but no claim
2376	2376	26 for credit or refund is allowed on or after August 16, 2013
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	HB5578 - 65 - LRB103 38815 HLH 68952 b
2383	2383
2384	2384
2385	2385	HB5578- 66 -LRB103 38815 HLH 68952 b HB5578 - 66 - LRB103 38815 HLH 68952 b
2386	2386	HB5578 - 66 - LRB103 38815 HLH 68952 b
2387	2387	1 (the effective date of Public Act 98-456) for such taxes paid
2388	2388	2 during the period beginning July 1, 2003 and ending on August
2389	2389	3 16, 2013 (the effective date of Public Act 98-456).
2390	2390	4 (13) Beginning January 1, 1992 and through June 30, 2016,
2391	2391	5 food for human consumption that is to be consumed off the
2392	2392	6 premises where it is sold (other than alcoholic beverages,
2393	2393	7 soft drinks and food that has been prepared for immediate
2394	2394	8 consumption) and prescription and non-prescription medicines,
2395	2395	9 drugs, medical appliances, and insulin, urine testing
2396	2396	10 materials, syringes, and needles used by diabetics, for human
2397	2397	11 use, when purchased for use by a person receiving medical
2398	2398	12 assistance under Article V of the Illinois Public Aid Code who
2399	2399	13 resides in a licensed long-term care facility, as defined in
2400	2400	14 the Nursing Home Care Act, or in a licensed facility as defined
2401	2401	15 in the ID/DD Community Care Act, the MC/DD Act, or the
2402	2402	16 Specialized Mental Health Rehabilitation Act of 2013.
2403	2403	17 (14) Semen used for artificial insemination of livestock
2404	2404	18 for direct agricultural production.
2405	2405	19 (15) Horses, or interests in horses, registered with and
2406	2406	20 meeting the requirements of any of the Arabian Horse Club
2407	2407	21 Registry of America, Appaloosa Horse Club, American Quarter
2408	2408	22 Horse Association, United States Trotting Association, or
2409	2409	23 Jockey Club, as appropriate, used for purposes of breeding or
2410	2410	24 racing for prizes. This item (15) is exempt from the
2411	2411	25 provisions of Section 3-55, and the exemption provided for
2412	2412	26 under this item (15) applies for all periods beginning May 30,
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	HB5578 - 66 - LRB103 38815 HLH 68952 b
2419	2419
2420	2420
2421	2421	HB5578- 67 -LRB103 38815 HLH 68952 b HB5578 - 67 - LRB103 38815 HLH 68952 b
2422	2422	HB5578 - 67 - LRB103 38815 HLH 68952 b
2423	2423	1 1995, but no claim for credit or refund is allowed on or after
2424	2424	2 January 1, 2008 (the effective date of Public Act 95-88) for
2425	2425	3 such taxes paid during the period beginning May 30, 2000 and
2426	2426	4 ending on January 1, 2008 (the effective date of Public Act
2427	2427	5 95-88).
2428	2428	6 (16) Computers and communications equipment utilized for
2429	2429	7 any hospital purpose and equipment used in the diagnosis,
2430	2430	8 analysis, or treatment of hospital patients sold to a lessor
2431	2431	9 who leases the equipment, under a lease of one year or longer
2432	2432	10 executed or in effect at the time of the purchase, to a
2433	2433	11 hospital that has been issued an active tax exemption
2434	2434	12 identification number by the Department under Section 1g of
2435	2435	13 the Retailers' Occupation Tax Act.
2436	2436	14 (17) Personal property sold to a lessor who leases the
2437	2437	15 property, under a lease of one year or longer executed or in
2438	2438	16 effect at the time of the purchase, to a governmental body that
2439	2439	17 has been issued an active tax exemption identification number
2440	2440	18 by the Department under Section 1g of the Retailers'
2441	2441	19 Occupation Tax Act.
2442	2442	20 (18) Beginning with taxable years ending on or after
2443	2443	21 December 31, 1995 and ending with taxable years ending on or
2444	2444	22 before December 31, 2004, personal property that is donated
2445	2445	23 for disaster relief to be used in a State or federally declared
2446	2446	24 disaster area in Illinois or bordering Illinois by a
2447	2447	25 manufacturer or retailer that is registered in this State to a
2448	2448	26 corporation, society, association, foundation, or institution
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	HB5578 - 67 - LRB103 38815 HLH 68952 b
2455	2455
2456	2456
2457	2457	HB5578- 68 -LRB103 38815 HLH 68952 b HB5578 - 68 - LRB103 38815 HLH 68952 b
2458	2458	HB5578 - 68 - LRB103 38815 HLH 68952 b
2459	2459	1 that has been issued a sales tax exemption identification
2460	2460	2 number by the Department that assists victims of the disaster
2461	2461	3 who reside within the declared disaster area.
2462	2462	4 (19) Beginning with taxable years ending on or after
2463	2463	5 December 31, 1995 and ending with taxable years ending on or
2464	2464	6 before December 31, 2004, personal property that is used in
2465	2465	7 the performance of infrastructure repairs in this State,
2466	2466	8 including, but not limited to, municipal roads and streets,
2467	2467	9 access roads, bridges, sidewalks, waste disposal systems,
2468	2468	10 water and sewer line extensions, water distribution and
2469	2469	11 purification facilities, storm water drainage and retention
2470	2470	12 facilities, and sewage treatment facilities, resulting from a
2471	2471	13 State or federally declared disaster in Illinois or bordering
2472	2472	14 Illinois when such repairs are initiated on facilities located
2473	2473	15 in the declared disaster area within 6 months after the
2474	2474	16 disaster.
2475	2475	17 (20) Beginning July 1, 1999, game or game birds sold at a
2476	2476	18 "game breeding and hunting preserve area" as that term is used
2477	2477	19 in the Wildlife Code. This paragraph is exempt from the
2478	2478	20 provisions of Section 3-55.
2479	2479	21 (21) A motor vehicle, as that term is defined in Section
2480	2480	22 1-146 of the Illinois Vehicle Code, that is donated to a
2481	2481	23 corporation, limited liability company, society, association,
2482	2482	24 foundation, or institution that is determined by the
2483	2483	25 Department to be organized and operated exclusively for
2484	2484	26 educational purposes. For purposes of this exemption, "a
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	HB5578 - 68 - LRB103 38815 HLH 68952 b
2491	2491
2492	2492
2493	2493	HB5578- 69 -LRB103 38815 HLH 68952 b HB5578 - 69 - LRB103 38815 HLH 68952 b
2494	2494	HB5578 - 69 - LRB103 38815 HLH 68952 b
2495	2495	1 corporation, limited liability company, society, association,
2496	2496	2 foundation, or institution organized and operated exclusively
2497	2497	3 for educational purposes" means all tax-supported public
2498	2498	4 schools, private schools that offer systematic instruction in
2499	2499	5 useful branches of learning by methods common to public
2500	2500	6 schools and that compare favorably in their scope and
2501	2501	7 intensity with the course of study presented in tax-supported
2502	2502	8 schools, and vocational or technical schools or institutes
2503	2503	9 organized and operated exclusively to provide a course of
2504	2504	10 study of not less than 6 weeks duration and designed to prepare
2505	2505	11 individuals to follow a trade or to pursue a manual,
2506	2506	12 technical, mechanical, industrial, business, or commercial
2507	2507	13 occupation.
2508	2508	14 (22) Beginning January 1, 2000, personal property,
2509	2509	15 including food, purchased through fundraising events for the
2510	2510	16 benefit of a public or private elementary or secondary school,
2511	2511	17 a group of those schools, or one or more school districts if
2512	2512	18 the events are sponsored by an entity recognized by the school
2513	2513	19 district that consists primarily of volunteers and includes
2514	2514	20 parents and teachers of the school children. This paragraph
2515	2515	21 does not apply to fundraising events (i) for the benefit of
2516	2516	22 private home instruction or (ii) for which the fundraising
2517	2517	23 entity purchases the personal property sold at the events from
2518	2518	24 another individual or entity that sold the property for the
2519	2519	25 purpose of resale by the fundraising entity and that profits
2520	2520	26 from the sale to the fundraising entity. This paragraph is
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	HB5578 - 69 - LRB103 38815 HLH 68952 b
2527	2527
2528	2528
2529	2529	HB5578- 70 -LRB103 38815 HLH 68952 b HB5578 - 70 - LRB103 38815 HLH 68952 b
2530	2530	HB5578 - 70 - LRB103 38815 HLH 68952 b
2531	2531	1 exempt from the provisions of Section 3-55.
2532	2532	2 (23) Beginning January 1, 2000 and through December 31,
2533	2533	3 2001, new or used automatic vending machines that prepare and
2534	2534	4 serve hot food and beverages, including coffee, soup, and
2535	2535	5 other items, and replacement parts for these machines.
2536	2536	6 Beginning January 1, 2002 and through June 30, 2003, machines
2537	2537	7 and parts for machines used in commercial, coin-operated
2538	2538	8 amusement and vending business if a use or occupation tax is
2539	2539	9 paid on the gross receipts derived from the use of the
2540	2540	10 commercial, coin-operated amusement and vending machines. This
2541	2541	11 paragraph is exempt from the provisions of Section 3-55.
2542	2542	12 (24) Beginning on August 2, 2001 (the effective date of
2543	2543	13 Public Act 92-227), computers and communications equipment
2544	2544	14 utilized for any hospital purpose and equipment used in the
2545	2545	15 diagnosis, analysis, or treatment of hospital patients sold to
2546	2546	16 a lessor who leases the equipment, under a lease of one year or
2547	2547	17 longer executed or in effect at the time of the purchase, to a
2548	2548	18 hospital that has been issued an active tax exemption
2549	2549	19 identification number by the Department under Section 1g of
2550	2550	20 the Retailers' Occupation Tax Act. This paragraph is exempt
2551	2551	21 from the provisions of Section 3-55.
2552	2552	22 (25) Beginning on August 2, 2001 (the effective date of
2553	2553	23 Public Act 92-227), personal property sold to a lessor who
2554	2554	24 leases the property, under a lease of one year or longer
2555	2555	25 executed or in effect at the time of the purchase, to a
2556	2556	26 governmental body that has been issued an active tax exemption
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	HB5578 - 70 - LRB103 38815 HLH 68952 b
2563	2563
2564	2564
2565	2565	HB5578- 71 -LRB103 38815 HLH 68952 b HB5578 - 71 - LRB103 38815 HLH 68952 b
2566	2566	HB5578 - 71 - LRB103 38815 HLH 68952 b
2567	2567	1 identification number by the Department under Section 1g of
2568	2568	2 the Retailers' Occupation Tax Act. This paragraph is exempt
2569	2569	3 from the provisions of Section 3-55.
2570	2570	4 (26) Beginning on January 1, 2002 and through June 30,
2571	2571	5 2016, tangible personal property purchased from an Illinois
2572	2572	6 retailer by a taxpayer engaged in centralized purchasing
2573	2573	7 activities in Illinois who will, upon receipt of the property
2574	2574	8 in Illinois, temporarily store the property in Illinois (i)
2575	2575	9 for the purpose of subsequently transporting it outside this
2576	2576	10 State for use or consumption thereafter solely outside this
2577	2577	11 State or (ii) for the purpose of being processed, fabricated,
2578	2578	12 or manufactured into, attached to, or incorporated into other
2579	2579	13 tangible personal property to be transported outside this
2580	2580	14 State and thereafter used or consumed solely outside this
2581	2581	15 State. The Director of Revenue shall, pursuant to rules
2582	2582	16 adopted in accordance with the Illinois Administrative
2583	2583	17 Procedure Act, issue a permit to any taxpayer in good standing
2584	2584	18 with the Department who is eligible for the exemption under
2585	2585	19 this paragraph (26). The permit issued under this paragraph
2586	2586	20 (26) shall authorize the holder, to the extent and in the
2587	2587	21 manner specified in the rules adopted under this Act, to
2588	2588	22 purchase tangible personal property from a retailer exempt
2589	2589	23 from the taxes imposed by this Act. Taxpayers shall maintain
2590	2590	24 all necessary books and records to substantiate the use and
2591	2591	25 consumption of all such tangible personal property outside of
2592	2592	26 the State of Illinois.
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	HB5578 - 71 - LRB103 38815 HLH 68952 b
2599	2599
2600	2600
2601	2601	HB5578- 72 -LRB103 38815 HLH 68952 b HB5578 - 72 - LRB103 38815 HLH 68952 b
2602	2602	HB5578 - 72 - LRB103 38815 HLH 68952 b
2603	2603	1 (27) Beginning January 1, 2008, tangible personal property
2604	2604	2 used in the construction or maintenance of a community water
2605	2605	3 supply, as defined under Section 3.145 of the Environmental
2606	2606	4 Protection Act, that is operated by a not-for-profit
2607	2607	5 corporation that holds a valid water supply permit issued
2608	2608	6 under Title IV of the Environmental Protection Act. This
2609	2609	7 paragraph is exempt from the provisions of Section 3-55.
2610	2610	8 (28) Tangible personal property sold to a
2611	2611	9 public-facilities corporation, as described in Section
2612	2612	10 11-65-10 of the Illinois Municipal Code, for purposes of
2613	2613	11 constructing or furnishing a municipal convention hall, but
2614	2614	12 only if the legal title to the municipal convention hall is
2615	2615	13 transferred to the municipality without any further
2616	2616	14 consideration by or on behalf of the municipality at the time
2617	2617	15 of the completion of the municipal convention hall or upon the
2618	2618	16 retirement or redemption of any bonds or other debt
2619	2619	17 instruments issued by the public-facilities corporation in
2620	2620	18 connection with the development of the municipal convention
2621	2621	19 hall. This exemption includes existing public-facilities
2622	2622	20 corporations as provided in Section 11-65-25 of the Illinois
2623	2623	21 Municipal Code. This paragraph is exempt from the provisions
2624	2624	22 of Section 3-55.
2625	2625	23 (29) Beginning January 1, 2010 and continuing through
2626	2626	24 December 31, 2029, materials, parts, equipment, components,
2627	2627	25 and furnishings incorporated into or upon an aircraft as part
2628	2628	26 of the modification, refurbishment, completion, replacement,
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	HB5578 - 72 - LRB103 38815 HLH 68952 b
2635	2635
2636	2636
2637	2637	HB5578- 73 -LRB103 38815 HLH 68952 b HB5578 - 73 - LRB103 38815 HLH 68952 b
2638	2638	HB5578 - 73 - LRB103 38815 HLH 68952 b
2639	2639	1 repair, or maintenance of the aircraft. This exemption
2640	2640	2 includes consumable supplies used in the modification,
2641	2641	3 refurbishment, completion, replacement, repair, and
2642	2642	4 maintenance of aircraft. However, until January 1, 2024, this
2643	2643	5 exemption excludes any materials, parts, equipment,
2644	2644	6 components, and consumable supplies used in the modification,
2645	2645	7 replacement, repair, and maintenance of aircraft engines or
2646	2646	8 power plants, whether such engines or power plants are
2647	2647	9 installed or uninstalled upon any such aircraft. "Consumable
2648	2648	10 supplies" include, but are not limited to, adhesive, tape,
2649	2649	11 sandpaper, general purpose lubricants, cleaning solution,
2650	2650	12 latex gloves, and protective films.
2651	2651	13 Beginning January 1, 2010 and continuing through December
2652	2652	14 31, 2023, this exemption applies only to the transfer of
2653	2653	15 qualifying tangible personal property incident to the
2654	2654	16 modification, refurbishment, completion, replacement, repair,
2655	2655	17 or maintenance of an aircraft by persons who (i) hold an Air
2656	2656	18 Agency Certificate and are empowered to operate an approved
2657	2657	19 repair station by the Federal Aviation Administration, (ii)
2658	2658	20 have a Class IV Rating, and (iii) conduct operations in
2659	2659	21 accordance with Part 145 of the Federal Aviation Regulations.
2660	2660	22 The exemption does not include aircraft operated by a
2661	2661	23 commercial air carrier providing scheduled passenger air
2662	2662	24 service pursuant to authority issued under Part 121 or Part
2663	2663	25 129 of the Federal Aviation Regulations. From January 1, 2024
2664	2664	26 through December 31, 2029, this exemption applies only to the
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	HB5578 - 73 - LRB103 38815 HLH 68952 b
2671	2671
2672	2672
2673	2673	HB5578- 74 -LRB103 38815 HLH 68952 b HB5578 - 74 - LRB103 38815 HLH 68952 b
2674	2674	HB5578 - 74 - LRB103 38815 HLH 68952 b
2675	2675	1 use of qualifying tangible personal property by: (A) persons
2676	2676	2 who modify, refurbish, complete, repair, replace, or maintain
2677	2677	3 aircraft and who (i) hold an Air Agency Certificate and are
2678	2678	4 empowered to operate an approved repair station by the Federal
2679	2679	5 Aviation Administration, (ii) have a Class IV Rating, and
2680	2680	6 (iii) conduct operations in accordance with Part 145 of the
2681	2681	7 Federal Aviation Regulations; and (B) persons who engage in
2682	2682	8 the modification, replacement, repair, and maintenance of
2683	2683	9 aircraft engines or power plants without regard to whether or
2684	2684	10 not those persons meet the qualifications of item (A).
2685	2685	11 The changes made to this paragraph (29) by Public Act
2686	2686	12 98-534 are declarative of existing law. It is the intent of the
2687	2687	13 General Assembly that the exemption under this paragraph (29)
2688	2688	14 applies continuously from January 1, 2010 through December 31,
2689	2689	15 2024; however, no claim for credit or refund is allowed for
2690	2690	16 taxes paid as a result of the disallowance of this exemption on
2691	2691	17 or after January 1, 2015 and prior to February 5, 2020 (the
2692	2692	18 effective date of Public Act 101-629).
2693	2693	19 (30) Beginning January 1, 2017 and through December 31,
2694	2694	20 2026, menstrual pads, tampons, and menstrual cups.
2695	2695	21 (31) Tangible personal property transferred to a purchaser
2696	2696	22 who is exempt from tax by operation of federal law. This
2697	2697	23 paragraph is exempt from the provisions of Section 3-55.
2698	2698	24 (32) Qualified tangible personal property used in the
2699	2699	25 construction or operation of a data center that has been
2700	2700	26 granted a certificate of exemption by the Department of
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705
2706	2706	HB5578 - 74 - LRB103 38815 HLH 68952 b
2707	2707
2708	2708
2709	2709	HB5578- 75 -LRB103 38815 HLH 68952 b HB5578 - 75 - LRB103 38815 HLH 68952 b
2710	2710	HB5578 - 75 - LRB103 38815 HLH 68952 b
2711	2711	1 Commerce and Economic Opportunity, whether that tangible
2712	2712	2 personal property is purchased by the owner, operator, or
2713	2713	3 tenant of the data center or by a contractor or subcontractor
2714	2714	4 of the owner, operator, or tenant. Data centers that would
2715	2715	5 have qualified for a certificate of exemption prior to January
2716	2716	6 1, 2020 had Public Act 101-31 been in effect, may apply for and
2717	2717	7 obtain an exemption for subsequent purchases of computer
2718	2718	8 equipment or enabling software purchased or leased to upgrade,
2719	2719	9 supplement, or replace computer equipment or enabling software
2720	2720	10 purchased or leased in the original investment that would have
2721	2721	11 qualified.
2722	2722	12 The Department of Commerce and Economic Opportunity shall
2723	2723	13 grant a certificate of exemption under this item (32) to
2724	2724	14 qualified data centers as defined by Section 605-1025 of the
2725	2725	15 Department of Commerce and Economic Opportunity Law of the
2726	2726	16 Civil Administrative Code of Illinois.
2727	2727	17 For the purposes of this item (32):
2728	2728	18 "Data center" means a building or a series of
2729	2729	19 buildings rehabilitated or constructed to house working
2730	2730	20 servers in one physical location or multiple sites within
2731	2731	21 the State of Illinois.
2732	2732	22 "Qualified tangible personal property" means:
2733	2733	23 electrical systems and equipment; climate control and
2734	2734	24 chilling equipment and systems; mechanical systems and
2735	2735	25 equipment; monitoring and secure systems; emergency
2736	2736	26 generators; hardware; computers; servers; data storage
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741
2742	2742	HB5578 - 75 - LRB103 38815 HLH 68952 b
2743	2743
2744	2744
2745	2745	HB5578- 76 -LRB103 38815 HLH 68952 b HB5578 - 76 - LRB103 38815 HLH 68952 b
2746	2746	HB5578 - 76 - LRB103 38815 HLH 68952 b
2747	2747	1 devices; network connectivity equipment; racks; cabinets;
2748	2748	2 telecommunications cabling infrastructure; raised floor
2749	2749	3 systems; peripheral components or systems; software;
2750	2750	4 mechanical, electrical, or plumbing systems; battery
2751	2751	5 systems; cooling systems and towers; temperature control
2752	2752	6 systems; other cabling; and other data center
2753	2753	7 infrastructure equipment and systems necessary to operate
2754	2754	8 qualified tangible personal property, including fixtures;
2755	2755	9 and component parts of any of the foregoing, including
2756	2756	10 installation, maintenance, repair, refurbishment, and
2757	2757	11 replacement of qualified tangible personal property to
2758	2758	12 generate, transform, transmit, distribute, or manage
2759	2759	13 electricity necessary to operate qualified tangible
2760	2760	14 personal property; and all other tangible personal
2761	2761	15 property that is essential to the operations of a computer
2762	2762	16 data center. The term "qualified tangible personal
2763	2763	17 property" also includes building materials physically
2764	2764	18 incorporated into in to the qualifying data center. To
2765	2765	19 document the exemption allowed under this Section, the
2766	2766	20 retailer must obtain from the purchaser a copy of the
2767	2767	21 certificate of eligibility issued by the Department of
2768	2768	22 Commerce and Economic Opportunity.
2769	2769	23 This item (32) is exempt from the provisions of Section
2770	2770	24 3-55.
2771	2771	25 (33) Beginning July 1, 2022, breast pumps, breast pump
2772	2772	26 collection and storage supplies, and breast pump kits. This
2773	2773
2774	2774
2775	2775
2776	2776
2777	2777
2778	2778	HB5578 - 76 - LRB103 38815 HLH 68952 b
2779	2779
2780	2780
2781	2781	HB5578- 77 -LRB103 38815 HLH 68952 b HB5578 - 77 - LRB103 38815 HLH 68952 b
2782	2782	HB5578 - 77 - LRB103 38815 HLH 68952 b
2783	2783	1 item (33) is exempt from the provisions of Section 3-55. As
2784	2784	2 used in this item (33):
2785	2785	3 "Breast pump" means an electrically controlled or
2786	2786	4 manually controlled pump device designed or marketed to be
2787	2787	5 used to express milk from a human breast during lactation,
2788	2788	6 including the pump device and any battery, AC adapter, or
2789	2789	7 other power supply unit that is used to power the pump
2790	2790	8 device and is packaged and sold with the pump device at the
2791	2791	9 time of sale.
2792	2792	10 "Breast pump collection and storage supplies" means
2793	2793	11 items of tangible personal property designed or marketed
2794	2794	12 to be used in conjunction with a breast pump to collect
2795	2795	13 milk expressed from a human breast and to store collected
2796	2796	14 milk until it is ready for consumption.
2797	2797	15 "Breast pump collection and storage supplies"
2798	2798	16 includes, but is not limited to: breast shields and breast
2799	2799	17 shield connectors; breast pump tubes and tubing adapters;
2800	2800	18 breast pump valves and membranes; backflow protectors and
2801	2801	19 backflow protector adaptors; bottles and bottle caps
2802	2802	20 specific to the operation of the breast pump; and breast
2803	2803	21 milk storage bags.
2804	2804	22 "Breast pump collection and storage supplies" does not
2805	2805	23 include: (1) bottles and bottle caps not specific to the
2806	2806	24 operation of the breast pump; (2) breast pump travel bags
2807	2807	25 and other similar carrying accessories, including ice
2808	2808	26 packs, labels, and other similar products; (3) breast pump
2809	2809
2810	2810
2811	2811
2812	2812
2813	2813
2814	2814	HB5578 - 77 - LRB103 38815 HLH 68952 b
2815	2815
2816	2816
2817	2817	HB5578- 78 -LRB103 38815 HLH 68952 b HB5578 - 78 - LRB103 38815 HLH 68952 b
2818	2818	HB5578 - 78 - LRB103 38815 HLH 68952 b
2819	2819	1 cleaning supplies; (4) nursing bras, bra pads, breast
2820	2820	2 shells, and other similar products; and (5) creams,
2821	2821	3 ointments, and other similar products that relieve
2822	2822	4 breastfeeding-related symptoms or conditions of the
2823	2823	5 breasts or nipples, unless sold as part of a breast pump
2824	2824	6 kit that is pre-packaged by the breast pump manufacturer
2825	2825	7 or distributor.
2826	2826	8 "Breast pump kit" means a kit that: (1) contains no
2827	2827	9 more than a breast pump, breast pump collection and
2828	2828	10 storage supplies, a rechargeable battery for operating the
2829	2829	11 breast pump, a breastmilk cooler, bottle stands, ice
2830	2830	12 packs, and a breast pump carrying case; and (2) is
2831	2831	13 pre-packaged as a breast pump kit by the breast pump
2832	2832	14 manufacturer or distributor.
2833	2833	15 (34) Tangible personal property sold by or on behalf of
2834	2834	16 the State Treasurer pursuant to the Revised Uniform Unclaimed
2835	2835	17 Property Act. This item (34) is exempt from the provisions of
2836	2836	18 Section 3-55.
2837	2837	19 (35) Beginning on January 1, 2024, tangible personal
2838	2838	20 property purchased by an active duty member of the armed
2839	2839	21 forces of the United States who presents valid military
2840	2840	22 identification and purchases the property using a form of
2841	2841	23 payment where the federal government is the payor. The member
2842	2842	24 of the armed forces must complete, at the point of sale, a form
2843	2843	25 prescribed by the Department of Revenue documenting that the
2844	2844	26 transaction is eligible for the exemption under this
2845	2845
2846	2846
2847	2847
2848	2848
2849	2849
2850	2850	HB5578 - 78 - LRB103 38815 HLH 68952 b
2851	2851
2852	2852
2853	2853	HB5578- 79 -LRB103 38815 HLH 68952 b HB5578 - 79 - LRB103 38815 HLH 68952 b
2854	2854	HB5578 - 79 - LRB103 38815 HLH 68952 b
2855	2855	1 paragraph. Retailers must keep the form as documentation of
2856	2856	2 the exemption in their records for a period of not less than 6
2857	2857	3 years. "Armed forces of the United States" means the United
2858	2858	4 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2859	2859	5 This paragraph is exempt from the provisions of Section 3-55.
2860	2860	6 (36) Beginning on January 1, 2025, medical appliances and
2861	2861	7 products that are classified as Class III medical devices by
2862	2862	8 the United States Food and Drug Administration and that are
2863	2863	9 used for cancer treatment pursuant to a prescription, as well
2864	2864	10 as any accessories and components related to those appliances
2865	2865	11 and devices. As used in this paragraph, "medical appliance"
2866	2866	12 means a product that was classified as a medical appliance and
2867	2867	13 was subject to a 1% rate of tax immediately prior to the
2868	2868	14 effective date of this amendatory Act of the 103rd General
2869	2869	15 Assembly, including, but not limited to, devices used to
2870	2870	16 provide advanced life support services, as defined by Section
2871	2871	17 3.10 of the Emergency Medical Services (EMS) Systems Act, and
2872	2872	18 any other items designated as medical appliances by the
2873	2873	19 Department by rule. This paragraph is exempt from the
2874	2874	20 provisions of Section 3-55.
2875	2875	21 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2876	2876	22 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2877	2877	23 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2878	2878	24 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2879	2879	25 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2880	2880	26 revised 12-12-23.)
2881	2881
2882	2882
2883	2883
2884	2884
2885	2885
2886	2886	HB5578 - 79 - LRB103 38815 HLH 68952 b
2887	2887
2888	2888
2889	2889	HB5578- 80 -LRB103 38815 HLH 68952 b HB5578 - 80 - LRB103 38815 HLH 68952 b
2890	2890	HB5578 - 80 - LRB103 38815 HLH 68952 b
2891	2891	1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2892	2892	2 Sec. 3-10. Rate of tax. Unless otherwise provided in this
2893	2893	3 Section, the tax imposed by this Act is at the rate of 6.25% of
2894	2894	4 the "selling price", as defined in Section 2 of the Service Use
2895	2895	5 Tax Act, of the tangible personal property. For the purpose of
2896	2896	6 computing this tax, in no event shall the "selling price" be
2897	2897	7 less than the cost price to the serviceman of the tangible
2898	2898	8 personal property transferred. The selling price of each item
2899	2899	9 of tangible personal property transferred as an incident of a
2900	2900	10 sale of service may be shown as a distinct and separate item on
2901	2901	11 the serviceman's billing to the service customer. If the
2902	2902	12 selling price is not so shown, the selling price of the
2903	2903	13 tangible personal property is deemed to be 50% of the
2904	2904	14 serviceman's entire billing to the service customer. When,
2905	2905	15 however, a serviceman contracts to design, develop, and
2906	2906	16 produce special order machinery or equipment, the tax imposed
2907	2907	17 by this Act shall be based on the serviceman's cost price of
2908	2908	18 the tangible personal property transferred incident to the
2909	2909	19 completion of the contract.
2910	2910	20 Beginning on July 1, 2000 and through December 31, 2000,
2911	2911	21 with respect to motor fuel, as defined in Section 1.1 of the
2912	2912	22 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2913	2913	23 the Use Tax Act, the tax is imposed at the rate of 1.25%.
2914	2914	24 With respect to gasohol, as defined in the Use Tax Act, the
2915	2915	25 tax imposed by this Act shall apply to (i) 70% of the cost
2916	2916
2917	2917
2918	2918
2919	2919
2920	2920
2921	2921	HB5578 - 80 - LRB103 38815 HLH 68952 b
2922	2922
2923	2923
2924	2924	HB5578- 81 -LRB103 38815 HLH 68952 b HB5578 - 81 - LRB103 38815 HLH 68952 b
2925	2925	HB5578 - 81 - LRB103 38815 HLH 68952 b
2926	2926	1 price of property transferred as an incident to the sale of
2927	2927	2 service on or after January 1, 1990, and before July 1, 2003,
2928	2928	3 (ii) 80% of the selling price of property transferred as an
2929	2929	4 incident to the sale of service on or after July 1, 2003 and on
2930	2930	5 or before July 1, 2017, (iii) 100% of the selling price of
2931	2931	6 property transferred as an incident to the sale of service
2932	2932	7 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
2933	2933	8 the selling price of property transferred as an incident to
2934	2934	9 the sale of service on or after January 1, 2024 and on or
2935	2935	10 before December 31, 2028, and (v) 100% of the selling price of
2936	2936	11 property transferred as an incident to the sale of service
2937	2937	12 after December 31, 2028. If, at any time, however, the tax
2938	2938	13 under this Act on sales of gasohol, as defined in the Use Tax
2939	2939	14 Act, is imposed at the rate of 1.25%, then the tax imposed by
2940	2940	15 this Act applies to 100% of the proceeds of sales of gasohol
2941	2941	16 made during that time.
2942	2942	17 With respect to mid-range ethanol blends, as defined in
2943	2943	18 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
2944	2944	19 applies to (i) 80% of the selling price of property
2945	2945	20 transferred as an incident to the sale of service on or after
2946	2946	21 January 1, 2024 and on or before December 31, 2028 and (ii)
2947	2947	22 100% of the selling price of property transferred as an
2948	2948	23 incident to the sale of service after December 31, 2028. If, at
2949	2949	24 any time, however, the tax under this Act on sales of mid-range
2950	2950	25 ethanol blends is imposed at the rate of 1.25%, then the tax
2951	2951	26 imposed by this Act applies to 100% of the selling price of
2952	2952
2953	2953
2954	2954
2955	2955
2956	2956
2957	2957	HB5578 - 81 - LRB103 38815 HLH 68952 b
2958	2958
2959	2959
2960	2960	HB5578- 82 -LRB103 38815 HLH 68952 b HB5578 - 82 - LRB103 38815 HLH 68952 b
2961	2961	HB5578 - 82 - LRB103 38815 HLH 68952 b
2962	2962	1 mid-range ethanol blends transferred as an incident to the
2963	2963	2 sale of service during that time.
2964	2964	3 With respect to majority blended ethanol fuel, as defined
2965	2965	4 in the Use Tax Act, the tax imposed by this Act does not apply
2966	2966	5 to the selling price of property transferred as an incident to
2967	2967	6 the sale of service on or after July 1, 2003 and on or before
2968	2968	7 December 31, 2028 but applies to 100% of the selling price
2969	2969	8 thereafter.
2970	2970	9 With respect to biodiesel blends, as defined in the Use
2971	2971	10 Tax Act, with no less than 1% and no more than 10% biodiesel,
2972	2972	11 the tax imposed by this Act applies to (i) 80% of the selling
2973	2973	12 price of property transferred as an incident to the sale of
2974	2974	13 service on or after July 1, 2003 and on or before December 31,
2975	2975	14 2018 and (ii) 100% of the proceeds of the selling price after
2976	2976	15 December 31, 2018 and before January 1, 2024. On and after
2977	2977	16 January 1, 2024 and on or before December 31, 2030, the
2978	2978	17 taxation of biodiesel, renewable diesel, and biodiesel blends
2979	2979	18 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2980	2980	19 at any time, however, the tax under this Act on sales of
2981	2981	20 biodiesel blends, as defined in the Use Tax Act, with no less
2982	2982	21 than 1% and no more than 10% biodiesel is imposed at the rate
2983	2983	22 of 1.25%, then the tax imposed by this Act applies to 100% of
2984	2984	23 the proceeds of sales of biodiesel blends with no less than 1%
2985	2985	24 and no more than 10% biodiesel made during that time.
2986	2986	25 With respect to biodiesel, as defined in the Use Tax Act,
2987	2987	26 and biodiesel blends, as defined in the Use Tax Act, with more
2988	2988
2989	2989
2990	2990
2991	2991
2992	2992
2993	2993	HB5578 - 82 - LRB103 38815 HLH 68952 b
2994	2994
2995	2995
2996	2996	HB5578- 83 -LRB103 38815 HLH 68952 b HB5578 - 83 - LRB103 38815 HLH 68952 b
2997	2997	HB5578 - 83 - LRB103 38815 HLH 68952 b
2998	2998	1 than 10% but no more than 99% biodiesel material, the tax
2999	2999	2 imposed by this Act does not apply to the proceeds of the
3000	3000	3 selling price of property transferred as an incident to the
3001	3001	4 sale of service on or after July 1, 2003 and on or before
3002	3002	5 December 31, 2023. On and after January 1, 2024 and on or
3003	3003	6 before December 31, 2030, the taxation of biodiesel, renewable
3004	3004	7 diesel, and biodiesel blends shall be as provided in Section
3005	3005	8 3-5.1 of the Use Tax Act.
3006	3006	9 At the election of any registered serviceman made for each
3007	3007	10 fiscal year, sales of service in which the aggregate annual
3008	3008	11 cost price of tangible personal property transferred as an
3009	3009	12 incident to the sales of service is less than 35%, or 75% in
3010	3010	13 the case of servicemen transferring prescription drugs or
3011	3011	14 servicemen engaged in graphic arts production, of the
3012	3012	15 aggregate annual total gross receipts from all sales of
3013	3013	16 service, the tax imposed by this Act shall be based on the
3014	3014	17 serviceman's cost price of the tangible personal property
3015	3015	18 transferred incident to the sale of those services.
3016	3016	19 Until July 1, 2022 and beginning again on July 1, 2023, the
3017	3017	20 tax shall be imposed at the rate of 1% on food prepared for
3018	3018	21 immediate consumption and transferred incident to a sale of
3019	3019	22 service subject to this Act or the Service Use Tax Act by an
3020	3020	23 entity licensed under the Hospital Licensing Act, the Nursing
3021	3021	24 Home Care Act, the Assisted Living and Shared Housing Act, the
3022	3022	25 ID/DD Community Care Act, the MC/DD Act, the Specialized
3023	3023	26 Mental Health Rehabilitation Act of 2013, or the Child Care
3024	3024
3025	3025
3026	3026
3027	3027
3028	3028
3029	3029	HB5578 - 83 - LRB103 38815 HLH 68952 b
3030	3030
3031	3031
3032	3032	HB5578- 84 -LRB103 38815 HLH 68952 b HB5578 - 84 - LRB103 38815 HLH 68952 b
3033	3033	HB5578 - 84 - LRB103 38815 HLH 68952 b
3034	3034	1 Act of 1969, or an entity that holds a permit issued pursuant
3035	3035	2 to the Life Care Facilities Act. Until July 1, 2022 and
3036	3036	3 beginning again on July 1, 2023, the tax shall also be imposed
3037	3037	4 at the rate of 1% on food for human consumption that is to be
3038	3038	5 consumed off the premises where it is sold (other than
3039	3039	6 alcoholic beverages, food consisting of or infused with adult
3040	3040	7 use cannabis, soft drinks, and food that has been prepared for
3041	3041	8 immediate consumption and is not otherwise included in this
3042	3042	9 paragraph).
3043	3043	10 Beginning on July 1, 2022 and until July 1, 2023, the tax
3044	3044	11 shall be imposed at the rate of 0% on food prepared for
3045	3045	12 immediate consumption and transferred incident to a sale of
3046	3046	13 service subject to this Act or the Service Use Tax Act by an
3047	3047	14 entity licensed under the Hospital Licensing Act, the Nursing
3048	3048	15 Home Care Act, the Assisted Living and Shared Housing Act, the
3049	3049	16 ID/DD Community Care Act, the MC/DD Act, the Specialized
3050	3050	17 Mental Health Rehabilitation Act of 2013, or the Child Care
3051	3051	18 Act of 1969, or an entity that holds a permit issued pursuant
3052	3052	19 to the Life Care Facilities Act. Beginning July 1, 2022 and
3053	3053	20 until July 1, 2023, the tax shall also be imposed at the rate
3054	3054	21 of 0% on food for human consumption that is to be consumed off
3055	3055	22 the premises where it is sold (other than alcoholic beverages,
3056	3056	23 food consisting of or infused with adult use cannabis, soft
3057	3057	24 drinks, and food that has been prepared for immediate
3058	3058	25 consumption and is not otherwise included in this paragraph).
3059	3059	26 The tax shall also be imposed at the rate of 1% on
3060	3060
3061	3061
3062	3062
3063	3063
3064	3064
3065	3065	HB5578 - 84 - LRB103 38815 HLH 68952 b
3066	3066
3067	3067
3068	3068	HB5578- 85 -LRB103 38815 HLH 68952 b HB5578 - 85 - LRB103 38815 HLH 68952 b
3069	3069	HB5578 - 85 - LRB103 38815 HLH 68952 b
3070	3070	1 prescription and nonprescription medicines, drugs, medical
3071	3071	2 appliances, products classified as Class III medical devices
3072	3072	3 by the United States Food and Drug Administration that are
3073	3073	4 used for cancer treatment pursuant to a prescription, as well
3074	3074	5 as any accessories and components related to those devices,
3075	3075	6 modifications to a motor vehicle for the purpose of rendering
3076	3076	7 it usable by a person with a disability, and insulin, blood
3077	3077	8 sugar testing materials, syringes, and needles used by human
3078	3078	9 diabetics (except to the extent that those items are exempt by
3079	3079	10 the Department under paragraph (36) of Section 3-5). For the
3080	3080	11 purposes of this Section, until September 1, 2009: the term
3081	3081	12 "soft drinks" means any complete, finished, ready-to-use,
3082	3082	13 non-alcoholic drink, whether carbonated or not, including, but
3083	3083	14 not limited to, soda water, cola, fruit juice, vegetable
3084	3084	15 juice, carbonated water, and all other preparations commonly
3085	3085	16 known as soft drinks of whatever kind or description that are
3086	3086	17 contained in any closed or sealed can, carton, or container,
3087	3087	18 regardless of size; but "soft drinks" does not include coffee,
3088	3088	19 tea, non-carbonated water, infant formula, milk or milk
3089	3089	20 products as defined in the Grade A Pasteurized Milk and Milk
3090	3090	21 Products Act, or drinks containing 50% or more natural fruit
3091	3091	22 or vegetable juice.
3092	3092	23 Notwithstanding any other provisions of this Act,
3093	3093	24 beginning September 1, 2009, "soft drinks" means non-alcoholic
3094	3094	25 beverages that contain natural or artificial sweeteners. "Soft
3095	3095	26 drinks" does not include beverages that contain milk or milk
3096	3096
3097	3097
3098	3098
3099	3099
3100	3100
3101	3101	HB5578 - 85 - LRB103 38815 HLH 68952 b
3102	3102
3103	3103
3104	3104	HB5578- 86 -LRB103 38815 HLH 68952 b HB5578 - 86 - LRB103 38815 HLH 68952 b
3105	3105	HB5578 - 86 - LRB103 38815 HLH 68952 b
3106	3106	1 products, soy, rice or similar milk substitutes, or greater
3107	3107	2 than 50% of vegetable or fruit juice by volume.
3108	3108	3 Until August 1, 2009, and notwithstanding any other
3109	3109	4 provisions of this Act, "food for human consumption that is to
3110	3110	5 be consumed off the premises where it is sold" includes all
3111	3111	6 food sold through a vending machine, except soft drinks and
3112	3112	7 food products that are dispensed hot from a vending machine,
3113	3113	8 regardless of the location of the vending machine. Beginning
3114	3114	9 August 1, 2009, and notwithstanding any other provisions of
3115	3115	10 this Act, "food for human consumption that is to be consumed
3116	3116	11 off the premises where it is sold" includes all food sold
3117	3117	12 through a vending machine, except soft drinks, candy, and food
3118	3118	13 products that are dispensed hot from a vending machine,
3119	3119	14 regardless of the location of the vending machine.
3120	3120	15 Notwithstanding any other provisions of this Act,
3121	3121	16 beginning September 1, 2009, "food for human consumption that
3122	3122	17 is to be consumed off the premises where it is sold" does not
3123	3123	18 include candy. For purposes of this Section, "candy" means a
3124	3124	19 preparation of sugar, honey, or other natural or artificial
3125	3125	20 sweeteners in combination with chocolate, fruits, nuts or
3126	3126	21 other ingredients or flavorings in the form of bars, drops, or
3127	3127	22 pieces. "Candy" does not include any preparation that contains
3128	3128	23 flour or requires refrigeration.
3129	3129	24 Notwithstanding any other provisions of this Act,
3130	3130	25 beginning September 1, 2009, "nonprescription medicines and
3131	3131	26 drugs" does not include grooming and hygiene products. For
3132	3132
3133	3133
3134	3134
3135	3135
3136	3136
3137	3137	HB5578 - 86 - LRB103 38815 HLH 68952 b
3138	3138
3139	3139
3140	3140	HB5578- 87 -LRB103 38815 HLH 68952 b HB5578 - 87 - LRB103 38815 HLH 68952 b
3141	3141	HB5578 - 87 - LRB103 38815 HLH 68952 b
3142	3142	1 purposes of this Section, "grooming and hygiene products"
3143	3143	2 includes, but is not limited to, soaps and cleaning solutions,
3144	3144	3 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3145	3145	4 lotions and screens, unless those products are available by
3146	3146	5 prescription only, regardless of whether the products meet the
3147	3147	6 definition of "over-the-counter-drugs". For the purposes of
3148	3148	7 this paragraph, "over-the-counter-drug" means a drug for human
3149	3149	8 use that contains a label that identifies the product as a drug
3150	3150	9 as required by 21 CFR 201.66. The "over-the-counter-drug"
3151	3151	10 label includes:
3152	3152	11 (A) a "Drug Facts" panel; or
3153	3153	12 (B) a statement of the "active ingredient(s)" with a
3154	3154	13 list of those ingredients contained in the compound,
3155	3155	14 substance or preparation.
3156	3156	15 Beginning on January 1, 2014 (the effective date of Public
3157	3157	16 Act 98-122), "prescription and nonprescription medicines and
3158	3158	17 drugs" includes medical cannabis purchased from a registered
3159	3159	18 dispensing organization under the Compassionate Use of Medical
3160	3160	19 Cannabis Program Act.
3161	3161	20 As used in this Section, "adult use cannabis" means
3162	3162	21 cannabis subject to tax under the Cannabis Cultivation
3163	3163	22 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
3164	3164	23 and does not include cannabis subject to tax under the
3165	3165	24 Compassionate Use of Medical Cannabis Program Act.
3166	3166	25 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
3167	3167	26 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
3168	3168
3169	3169
3170	3170
3171	3171
3172	3172
3173	3173	HB5578 - 87 - LRB103 38815 HLH 68952 b
3174	3174
3175	3175
3176	3176	HB5578- 88 -LRB103 38815 HLH 68952 b HB5578 - 88 - LRB103 38815 HLH 68952 b
3177	3177	HB5578 - 88 - LRB103 38815 HLH 68952 b
3178	3178	1 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
3179	3179	2 103-154, eff. 6-30-23.)
3180	3180	3 Section 20. The Retailers' Occupation Tax Act is amended
3181	3181	4 by changing Sections 2-5 and 2-10 as follows:
3182	3182	5 (35 ILCS 120/2-5)
3183	3183	6 Sec. 2-5. Exemptions. Gross receipts from proceeds from
3184	3184	7 the sale of the following tangible personal property are
3185	3185	8 exempt from the tax imposed by this Act:
3186	3186	9 (1) Farm chemicals.
3187	3187	10 (2) Farm machinery and equipment, both new and used,
3188	3188	11 including that manufactured on special order, certified by
3189	3189	12 the purchaser to be used primarily for production
3190	3190	13 agriculture or State or federal agricultural programs,
3191	3191	14 including individual replacement parts for the machinery
3192	3192	15 and equipment, including machinery and equipment purchased
3193	3193	16 for lease, and including implements of husbandry defined
3194	3194	17 in Section 1-130 of the Illinois Vehicle Code, farm
3195	3195	18 machinery and agricultural chemical and fertilizer
3196	3196	19 spreaders, and nurse wagons required to be registered
3197	3197	20 under Section 3-809 of the Illinois Vehicle Code, but
3198	3198	21 excluding other motor vehicles required to be registered
3199	3199	22 under the Illinois Vehicle Code. Horticultural polyhouses
3200	3200	23 or hoop houses used for propagating, growing, or
3201	3201	24 overwintering plants shall be considered farm machinery
3202	3202
3203	3203
3204	3204
3205	3205
3206	3206
3207	3207	HB5578 - 88 - LRB103 38815 HLH 68952 b
3208	3208
3209	3209
3210	3210	HB5578- 89 -LRB103 38815 HLH 68952 b HB5578 - 89 - LRB103 38815 HLH 68952 b
3211	3211	HB5578 - 89 - LRB103 38815 HLH 68952 b
3212	3212	1 and equipment under this item (2). Agricultural chemical
3213	3213	2 tender tanks and dry boxes shall include units sold
3214	3214	3 separately from a motor vehicle required to be licensed
3215	3215	4 and units sold mounted on a motor vehicle required to be
3216	3216	5 licensed, if the selling price of the tender is separately
3217	3217	6 stated.
3218	3218	7 Farm machinery and equipment shall include precision
3219	3219	8 farming equipment that is installed or purchased to be
3220	3220	9 installed on farm machinery and equipment including, but
3221	3221	10 not limited to, tractors, harvesters, sprayers, planters,
3222	3222	11 seeders, or spreaders. Precision farming equipment
3223	3223	12 includes, but is not limited to, soil testing sensors,
3224	3224	13 computers, monitors, software, global positioning and
3225	3225	14 mapping systems, and other such equipment.
3226	3226	15 Farm machinery and equipment also includes computers,
3227	3227	16 sensors, software, and related equipment used primarily in
3228	3228	17 the computer-assisted operation of production agriculture
3229	3229	18 facilities, equipment, and activities such as, but not
3230	3230	19 limited to, the collection, monitoring, and correlation of
3231	3231	20 animal and crop data for the purpose of formulating animal
3232	3232	21 diets and agricultural chemicals.
3233	3233	22 Beginning on January 1, 2024, farm machinery and
3234	3234	23 equipment also includes electrical power generation
3235	3235	24 equipment used primarily for production agriculture.
3236	3236	25 This item (2) is exempt from the provisions of Section
3237	3237	26 2-70.
3238	3238
3239	3239
3240	3240
3241	3241
3242	3242
3243	3243	HB5578 - 89 - LRB103 38815 HLH 68952 b
3244	3244
3245	3245
3246	3246	HB5578- 90 -LRB103 38815 HLH 68952 b HB5578 - 90 - LRB103 38815 HLH 68952 b
3247	3247	HB5578 - 90 - LRB103 38815 HLH 68952 b
3248	3248	1 (3) Until July 1, 2003, distillation machinery and
3249	3249	2 equipment, sold as a unit or kit, assembled or installed
3250	3250	3 by the retailer, certified by the user to be used only for
3251	3251	4 the production of ethyl alcohol that will be used for
3252	3252	5 consumption as motor fuel or as a component of motor fuel
3253	3253	6 for the personal use of the user, and not subject to sale
3254	3254	7 or resale.
3255	3255	8 (4) Until July 1, 2003 and beginning again September
3256	3256	9 1, 2004 through August 30, 2014, graphic arts machinery
3257	3257	10 and equipment, including repair and replacement parts,
3258	3258	11 both new and used, and including that manufactured on
3259	3259	12 special order or purchased for lease, certified by the
3260	3260	13 purchaser to be used primarily for graphic arts
3261	3261	14 production. Equipment includes chemicals or chemicals
3262	3262	15 acting as catalysts but only if the chemicals or chemicals
3263	3263	16 acting as catalysts effect a direct and immediate change
3264	3264	17 upon a graphic arts product. Beginning on July 1, 2017,
3265	3265	18 graphic arts machinery and equipment is included in the
3266	3266	19 manufacturing and assembling machinery and equipment
3267	3267	20 exemption under paragraph (14).
3268	3268	21 (5) A motor vehicle that is used for automobile
3269	3269	22 renting, as defined in the Automobile Renting Occupation
3270	3270	23 and Use Tax Act. This paragraph is exempt from the
3271	3271	24 provisions of Section 2-70.
3272	3272	25 (6) Personal property sold by a teacher-sponsored
3273	3273	26 student organization affiliated with an elementary or
3274	3274
3275	3275
3276	3276
3277	3277
3278	3278
3279	3279	HB5578 - 90 - LRB103 38815 HLH 68952 b
3280	3280
3281	3281
3282	3282	HB5578- 91 -LRB103 38815 HLH 68952 b HB5578 - 91 - LRB103 38815 HLH 68952 b
3283	3283	HB5578 - 91 - LRB103 38815 HLH 68952 b
3284	3284	1 secondary school located in Illinois.
3285	3285	2 (7) Until July 1, 2003, proceeds of that portion of
3286	3286	3 the selling price of a passenger car the sale of which is
3287	3287	4 subject to the Replacement Vehicle Tax.
3288	3288	5 (8) Personal property sold to an Illinois county fair
3289	3289	6 association for use in conducting, operating, or promoting
3290	3290	7 the county fair.
3291	3291	8 (9) Personal property sold to a not-for-profit arts or
3292	3292	9 cultural organization that establishes, by proof required
3293	3293	10 by the Department by rule, that it has received an
3294	3294	11 exemption under Section 501(c)(3) of the Internal Revenue
3295	3295	12 Code and that is organized and operated primarily for the
3296	3296	13 presentation or support of arts or cultural programming,
3297	3297	14 activities, or services. These organizations include, but
3298	3298	15 are not limited to, music and dramatic arts organizations
3299	3299	16 such as symphony orchestras and theatrical groups, arts
3300	3300	17 and cultural service organizations, local arts councils,
3301	3301	18 visual arts organizations, and media arts organizations.
3302	3302	19 On and after July 1, 2001 (the effective date of Public Act
3303	3303	20 92-35), however, an entity otherwise eligible for this
3304	3304	21 exemption shall not make tax-free purchases unless it has
3305	3305	22 an active identification number issued by the Department.
3306	3306	23 (10) Personal property sold by a corporation, society,
3307	3307	24 association, foundation, institution, or organization,
3308	3308	25 other than a limited liability company, that is organized
3309	3309	26 and operated as a not-for-profit service enterprise for
3310	3310
3311	3311
3312	3312
3313	3313
3314	3314
3315	3315	HB5578 - 91 - LRB103 38815 HLH 68952 b
3316	3316
3317	3317
3318	3318	HB5578- 92 -LRB103 38815 HLH 68952 b HB5578 - 92 - LRB103 38815 HLH 68952 b
3319	3319	HB5578 - 92 - LRB103 38815 HLH 68952 b
3320	3320	1 the benefit of persons 65 years of age or older if the
3321	3321	2 personal property was not purchased by the enterprise for
3322	3322	3 the purpose of resale by the enterprise.
3323	3323	4 (11) Except as otherwise provided in this Section,
3324	3324	5 personal property sold to a governmental body, to a
3325	3325	6 corporation, society, association, foundation, or
3326	3326	7 institution organized and operated exclusively for
3327	3327	8 charitable, religious, or educational purposes, or to a
3328	3328	9 not-for-profit corporation, society, association,
3329	3329	10 foundation, institution, or organization that has no
3330	3330	11 compensated officers or employees and that is organized
3331	3331	12 and operated primarily for the recreation of persons 55
3332	3332	13 years of age or older. A limited liability company may
3333	3333	14 qualify for the exemption under this paragraph only if the
3334	3334	15 limited liability company is organized and operated
3335	3335	16 exclusively for educational purposes. On and after July 1,
3336	3336	17 1987, however, no entity otherwise eligible for this
3337	3337	18 exemption shall make tax-free purchases unless it has an
3338	3338	19 active identification number issued by the Department.
3339	3339	20 (12) (Blank).
3340	3340	21 (12-5) On and after July 1, 2003 and through June 30,
3341	3341	22 2004, motor vehicles of the second division with a gross
3342	3342	23 vehicle weight in excess of 8,000 pounds that are subject
3343	3343	24 to the commercial distribution fee imposed under Section
3344	3344	25 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3345	3345	26 2004 and through June 30, 2005, the use in this State of
3346	3346
3347	3347
3348	3348
3349	3349
3350	3350
3351	3351	HB5578 - 92 - LRB103 38815 HLH 68952 b
3352	3352
3353	3353
3354	3354	HB5578- 93 -LRB103 38815 HLH 68952 b HB5578 - 93 - LRB103 38815 HLH 68952 b
3355	3355	HB5578 - 93 - LRB103 38815 HLH 68952 b
3356	3356	1 motor vehicles of the second division: (i) with a gross
3357	3357	2 vehicle weight rating in excess of 8,000 pounds; (ii) that
3358	3358	3 are subject to the commercial distribution fee imposed
3359	3359	4 under Section 3-815.1 of the Illinois Vehicle Code; and
3360	3360	5 (iii) that are primarily used for commercial purposes.
3361	3361	6 Through June 30, 2005, this exemption applies to repair
3362	3362	7 and replacement parts added after the initial purchase of
3363	3363	8 such a motor vehicle if that motor vehicle is used in a
3364	3364	9 manner that would qualify for the rolling stock exemption
3365	3365	10 otherwise provided for in this Act. For purposes of this
3366	3366	11 paragraph, "used for commercial purposes" means the
3367	3367	12 transportation of persons or property in furtherance of
3368	3368	13 any commercial or industrial enterprise whether for-hire
3369	3369	14 or not.
3370	3370	15 (13) Proceeds from sales to owners, lessors, or
3371	3371	16 shippers of tangible personal property that is utilized by
3372	3372	17 interstate carriers for hire for use as rolling stock
3373	3373	18 moving in interstate commerce and equipment operated by a
3374	3374	19 telecommunications provider, licensed as a common carrier
3375	3375	20 by the Federal Communications Commission, which is
3376	3376	21 permanently installed in or affixed to aircraft moving in
3377	3377	22 interstate commerce.
3378	3378	23 (14) Machinery and equipment that will be used by the
3379	3379	24 purchaser, or a lessee of the purchaser, primarily in the
3380	3380	25 process of manufacturing or assembling tangible personal
3381	3381	26 property for wholesale or retail sale or lease, whether
3382	3382
3383	3383
3384	3384
3385	3385
3386	3386
3387	3387	HB5578 - 93 - LRB103 38815 HLH 68952 b
3388	3388
3389	3389
3390	3390	HB5578- 94 -LRB103 38815 HLH 68952 b HB5578 - 94 - LRB103 38815 HLH 68952 b
3391	3391	HB5578 - 94 - LRB103 38815 HLH 68952 b
3392	3392	1 the sale or lease is made directly by the manufacturer or
3393	3393	2 by some other person, whether the materials used in the
3394	3394	3 process are owned by the manufacturer or some other
3395	3395	4 person, or whether the sale or lease is made apart from or
3396	3396	5 as an incident to the seller's engaging in the service
3397	3397	6 occupation of producing machines, tools, dies, jigs,
3398	3398	7 patterns, gauges, or other similar items of no commercial
3399	3399	8 value on special order for a particular purchaser. The
3400	3400	9 exemption provided by this paragraph (14) does not include
3401	3401	10 machinery and equipment used in (i) the generation of
3402	3402	11 electricity for wholesale or retail sale; (ii) the
3403	3403	12 generation or treatment of natural or artificial gas for
3404	3404	13 wholesale or retail sale that is delivered to customers
3405	3405	14 through pipes, pipelines, or mains; or (iii) the treatment
3406	3406	15 of water for wholesale or retail sale that is delivered to
3407	3407	16 customers through pipes, pipelines, or mains. The
3408	3408	17 provisions of Public Act 98-583 are declaratory of
3409	3409	18 existing law as to the meaning and scope of this
3410	3410	19 exemption. Beginning on July 1, 2017, the exemption
3411	3411	20 provided by this paragraph (14) includes, but is not
3412	3412	21 limited to, graphic arts machinery and equipment, as
3413	3413	22 defined in paragraph (4) of this Section.
3414	3414	23 (15) Proceeds of mandatory service charges separately
3415	3415	24 stated on customers' bills for purchase and consumption of
3416	3416	25 food and beverages, to the extent that the proceeds of the
3417	3417	26 service charge are in fact turned over as tips or as a
3418	3418
3419	3419
3420	3420
3421	3421
3422	3422
3423	3423	HB5578 - 94 - LRB103 38815 HLH 68952 b
3424	3424
3425	3425
3426	3426	HB5578- 95 -LRB103 38815 HLH 68952 b HB5578 - 95 - LRB103 38815 HLH 68952 b
3427	3427	HB5578 - 95 - LRB103 38815 HLH 68952 b
3428	3428	1 substitute for tips to the employees who participate
3429	3429	2 directly in preparing, serving, hosting or cleaning up the
3430	3430	3 food or beverage function with respect to which the
3431	3431	4 service charge is imposed.
3432	3432	5 (16) Tangible personal property sold to a purchaser if
3433	3433	6 the purchaser is exempt from use tax by operation of
3434	3434	7 federal law. This paragraph is exempt from the provisions
3435	3435	8 of Section 2-70.
3436	3436	9 (17) Tangible personal property sold to a common
3437	3437	10 carrier by rail or motor that receives the physical
3438	3438	11 possession of the property in Illinois and that transports
3439	3439	12 the property, or shares with another common carrier in the
3440	3440	13 transportation of the property, out of Illinois on a
3441	3441	14 standard uniform bill of lading showing the seller of the
3442	3442	15 property as the shipper or consignor of the property to a
3443	3443	16 destination outside Illinois, for use outside Illinois.
3444	3444	17 (18) Legal tender, currency, medallions, or gold or
3445	3445	18 silver coinage issued by the State of Illinois, the
3446	3446	19 government of the United States of America, or the
3447	3447	20 government of any foreign country, and bullion.
3448	3448	21 (19) Until July 1, 2003, oil field exploration,
3449	3449	22 drilling, and production equipment, including (i) rigs and
3450	3450	23 parts of rigs, rotary rigs, cable tool rigs, and workover
3451	3451	24 rigs, (ii) pipe and tubular goods, including casing and
3452	3452	25 drill strings, (iii) pumps and pump-jack units, (iv)
3453	3453	26 storage tanks and flow lines, (v) any individual
3454	3454
3455	3455
3456	3456
3457	3457
3458	3458
3459	3459	HB5578 - 95 - LRB103 38815 HLH 68952 b
3460	3460
3461	3461
3462	3462	HB5578- 96 -LRB103 38815 HLH 68952 b HB5578 - 96 - LRB103 38815 HLH 68952 b
3463	3463	HB5578 - 96 - LRB103 38815 HLH 68952 b
3464	3464	1 replacement part for oil field exploration, drilling, and
3465	3465	2 production equipment, and (vi) machinery and equipment
3466	3466	3 purchased for lease; but excluding motor vehicles required
3467	3467	4 to be registered under the Illinois Vehicle Code.
3468	3468	5 (20) Photoprocessing machinery and equipment,
3469	3469	6 including repair and replacement parts, both new and used,
3470	3470	7 including that manufactured on special order, certified by
3471	3471	8 the purchaser to be used primarily for photoprocessing,
3472	3472	9 and including photoprocessing machinery and equipment
3473	3473	10 purchased for lease.
3474	3474	11 (21) Until July 1, 2028, coal and aggregate
3475	3475	12 exploration, mining, off-highway hauling, processing,
3476	3476	13 maintenance, and reclamation equipment, including
3477	3477	14 replacement parts and equipment, and including equipment
3478	3478	15 purchased for lease, but excluding motor vehicles required
3479	3479	16 to be registered under the Illinois Vehicle Code. The
3480	3480	17 changes made to this Section by Public Act 97-767 apply on
3481	3481	18 and after July 1, 2003, but no claim for credit or refund
3482	3482	19 is allowed on or after August 16, 2013 (the effective date
3483	3483	20 of Public Act 98-456) for such taxes paid during the
3484	3484	21 period beginning July 1, 2003 and ending on August 16,
3485	3485	22 2013 (the effective date of Public Act 98-456).
3486	3486	23 (22) Until June 30, 2013, fuel and petroleum products
3487	3487	24 sold to or used by an air carrier, certified by the carrier
3488	3488	25 to be used for consumption, shipment, or storage in the
3489	3489	26 conduct of its business as an air common carrier, for a
3490	3490
3491	3491
3492	3492
3493	3493
3494	3494
3495	3495	HB5578 - 96 - LRB103 38815 HLH 68952 b
3496	3496
3497	3497
3498	3498	HB5578- 97 -LRB103 38815 HLH 68952 b HB5578 - 97 - LRB103 38815 HLH 68952 b
3499	3499	HB5578 - 97 - LRB103 38815 HLH 68952 b
3500	3500	1 flight destined for or returning from a location or
3501	3501	2 locations outside the United States without regard to
3502	3502	3 previous or subsequent domestic stopovers.
3503	3503	4 Beginning July 1, 2013, fuel and petroleum products
3504	3504	5 sold to or used by an air carrier, certified by the carrier
3505	3505	6 to be used for consumption, shipment, or storage in the
3506	3506	7 conduct of its business as an air common carrier, for a
3507	3507	8 flight that (i) is engaged in foreign trade or is engaged
3508	3508	9 in trade between the United States and any of its
3509	3509	10 possessions and (ii) transports at least one individual or
3510	3510	11 package for hire from the city of origination to the city
3511	3511	12 of final destination on the same aircraft, without regard
3512	3512	13 to a change in the flight number of that aircraft.
3513	3513	14 (23) A transaction in which the purchase order is
3514	3514	15 received by a florist who is located outside Illinois, but
3515	3515	16 who has a florist located in Illinois deliver the property
3516	3516	17 to the purchaser or the purchaser's donee in Illinois.
3517	3517	18 (24) Fuel consumed or used in the operation of ships,
3518	3518	19 barges, or vessels that are used primarily in or for the
3519	3519	20 transportation of property or the conveyance of persons
3520	3520	21 for hire on rivers bordering on this State if the fuel is
3521	3521	22 delivered by the seller to the purchaser's barge, ship, or
3522	3522	23 vessel while it is afloat upon that bordering river.
3523	3523	24 (25) Except as provided in item (25-5) of this
3524	3524	25 Section, a motor vehicle sold in this State to a
3525	3525	26 nonresident even though the motor vehicle is delivered to
3526	3526
3527	3527
3528	3528
3529	3529
3530	3530
3531	3531	HB5578 - 97 - LRB103 38815 HLH 68952 b
3532	3532
3533	3533
3534	3534	HB5578- 98 -LRB103 38815 HLH 68952 b HB5578 - 98 - LRB103 38815 HLH 68952 b
3535	3535	HB5578 - 98 - LRB103 38815 HLH 68952 b
3536	3536	1 the nonresident in this State, if the motor vehicle is not
3537	3537	2 to be titled in this State, and if a drive-away permit is
3538	3538	3 issued to the motor vehicle as provided in Section 3-603
3539	3539	4 of the Illinois Vehicle Code or if the nonresident
3540	3540	5 purchaser has vehicle registration plates to transfer to
3541	3541	6 the motor vehicle upon returning to his or her home state.
3542	3542	7 The issuance of the drive-away permit or having the
3543	3543	8 out-of-state registration plates to be transferred is
3544	3544	9 prima facie evidence that the motor vehicle will not be
3545	3545	10 titled in this State.
3546	3546	11 (25-5) The exemption under item (25) does not apply if
3547	3547	12 the state in which the motor vehicle will be titled does
3548	3548	13 not allow a reciprocal exemption for a motor vehicle sold
3549	3549	14 and delivered in that state to an Illinois resident but
3550	3550	15 titled in Illinois. The tax collected under this Act on
3551	3551	16 the sale of a motor vehicle in this State to a resident of
3552	3552	17 another state that does not allow a reciprocal exemption
3553	3553	18 shall be imposed at a rate equal to the state's rate of tax
3554	3554	19 on taxable property in the state in which the purchaser is
3555	3555	20 a resident, except that the tax shall not exceed the tax
3556	3556	21 that would otherwise be imposed under this Act. At the
3557	3557	22 time of the sale, the purchaser shall execute a statement,
3558	3558	23 signed under penalty of perjury, of his or her intent to
3559	3559	24 title the vehicle in the state in which the purchaser is a
3560	3560	25 resident within 30 days after the sale and of the fact of
3561	3561	26 the payment to the State of Illinois of tax in an amount
3562	3562
3563	3563
3564	3564
3565	3565
3566	3566
3567	3567	HB5578 - 98 - LRB103 38815 HLH 68952 b
3568	3568
3569	3569
3570	3570	HB5578- 99 -LRB103 38815 HLH 68952 b HB5578 - 99 - LRB103 38815 HLH 68952 b
3571	3571	HB5578 - 99 - LRB103 38815 HLH 68952 b
3572	3572	1 equivalent to the state's rate of tax on taxable property
3573	3573	2 in his or her state of residence and shall submit the
3574	3574	3 statement to the appropriate tax collection agency in his
3575	3575	4 or her state of residence. In addition, the retailer must
3576	3576	5 retain a signed copy of the statement in his or her
3577	3577	6 records. Nothing in this item shall be construed to
3578	3578	7 require the removal of the vehicle from this state
3579	3579	8 following the filing of an intent to title the vehicle in
3580	3580	9 the purchaser's state of residence if the purchaser titles
3581	3581	10 the vehicle in his or her state of residence within 30 days
3582	3582	11 after the date of sale. The tax collected under this Act in
3583	3583	12 accordance with this item (25-5) shall be proportionately
3584	3584	13 distributed as if the tax were collected at the 6.25%
3585	3585	14 general rate imposed under this Act.
3586	3586	15 (25-7) Beginning on July 1, 2007, no tax is imposed
3587	3587	16 under this Act on the sale of an aircraft, as defined in
3588	3588	17 Section 3 of the Illinois Aeronautics Act, if all of the
3589	3589	18 following conditions are met:
3590	3590	19 (1) the aircraft leaves this State within 15 days
3591	3591	20 after the later of either the issuance of the final
3592	3592	21 billing for the sale of the aircraft, or the
3593	3593	22 authorized approval for return to service, completion
3594	3594	23 of the maintenance record entry, and completion of the
3595	3595	24 test flight and ground test for inspection, as
3596	3596	25 required by 14 CFR 91.407;
3597	3597	26 (2) the aircraft is not based or registered in
3598	3598
3599	3599
3600	3600
3601	3601
3602	3602
3603	3603	HB5578 - 99 - LRB103 38815 HLH 68952 b
3604	3604
3605	3605
3606	3606	HB5578- 100 -LRB103 38815 HLH 68952 b HB5578 - 100 - LRB103 38815 HLH 68952 b
3607	3607	HB5578 - 100 - LRB103 38815 HLH 68952 b
3608	3608	1 this State after the sale of the aircraft; and
3609	3609	2 (3) the seller retains in his or her books and
3610	3610	3 records and provides to the Department a signed and
3611	3611	4 dated certification from the purchaser, on a form
3612	3612	5 prescribed by the Department, certifying that the
3613	3613	6 requirements of this item (25-7) are met. The
3614	3614	7 certificate must also include the name and address of
3615	3615	8 the purchaser, the address of the location where the
3616	3616	9 aircraft is to be titled or registered, the address of
3617	3617	10 the primary physical location of the aircraft, and
3618	3618	11 other information that the Department may reasonably
3619	3619	12 require.
3620	3620	13 For purposes of this item (25-7):
3621	3621	14 "Based in this State" means hangared, stored, or
3622	3622	15 otherwise used, excluding post-sale customizations as
3623	3623	16 defined in this Section, for 10 or more days in each
3624	3624	17 12-month period immediately following the date of the sale
3625	3625	18 of the aircraft.
3626	3626	19 "Registered in this State" means an aircraft
3627	3627	20 registered with the Department of Transportation,
3628	3628	21 Aeronautics Division, or titled or registered with the
3629	3629	22 Federal Aviation Administration to an address located in
3630	3630	23 this State.
3631	3631	24 This paragraph (25-7) is exempt from the provisions of
3632	3632	25 Section 2-70.
3633	3633	26 (26) Semen used for artificial insemination of
3634	3634
3635	3635
3636	3636
3637	3637
3638	3638
3639	3639	HB5578 - 100 - LRB103 38815 HLH 68952 b
3640	3640
3641	3641
3642	3642	HB5578- 101 -LRB103 38815 HLH 68952 b HB5578 - 101 - LRB103 38815 HLH 68952 b
3643	3643	HB5578 - 101 - LRB103 38815 HLH 68952 b
3644	3644	1 livestock for direct agricultural production.
3645	3645	2 (27) Horses, or interests in horses, registered with
3646	3646	3 and meeting the requirements of any of the Arabian Horse
3647	3647	4 Club Registry of America, Appaloosa Horse Club, American
3648	3648	5 Quarter Horse Association, United States Trotting
3649	3649	6 Association, or Jockey Club, as appropriate, used for
3650	3650	7 purposes of breeding or racing for prizes. This item (27)
3651	3651	8 is exempt from the provisions of Section 2-70, and the
3652	3652	9 exemption provided for under this item (27) applies for
3653	3653	10 all periods beginning May 30, 1995, but no claim for
3654	3654	11 credit or refund is allowed on or after January 1, 2008
3655	3655	12 (the effective date of Public Act 95-88) for such taxes
3656	3656	13 paid during the period beginning May 30, 2000 and ending
3657	3657	14 on January 1, 2008 (the effective date of Public Act
3658	3658	15 95-88).
3659	3659	16 (28) Computers and communications equipment utilized
3660	3660	17 for any hospital purpose and equipment used in the
3661	3661	18 diagnosis, analysis, or treatment of hospital patients
3662	3662	19 sold to a lessor who leases the equipment, under a lease of
3663	3663	20 one year or longer executed or in effect at the time of the
3664	3664	21 purchase, to a hospital that has been issued an active tax
3665	3665	22 exemption identification number by the Department under
3666	3666	23 Section 1g of this Act.
3667	3667	24 (29) Personal property sold to a lessor who leases the
3668	3668	25 property, under a lease of one year or longer executed or
3669	3669	26 in effect at the time of the purchase, to a governmental
3670	3670
3671	3671
3672	3672
3673	3673
3674	3674
3675	3675	HB5578 - 101 - LRB103 38815 HLH 68952 b
3676	3676
3677	3677
3678	3678	HB5578- 102 -LRB103 38815 HLH 68952 b HB5578 - 102 - LRB103 38815 HLH 68952 b
3679	3679	HB5578 - 102 - LRB103 38815 HLH 68952 b
3680	3680	1 body that has been issued an active tax exemption
3681	3681	2 identification number by the Department under Section 1g
3682	3682	3 of this Act.
3683	3683	4 (30) Beginning with taxable years ending on or after
3684	3684	5 December 31, 1995 and ending with taxable years ending on
3685	3685	6 or before December 31, 2004, personal property that is
3686	3686	7 donated for disaster relief to be used in a State or
3687	3687	8 federally declared disaster area in Illinois or bordering
3688	3688	9 Illinois by a manufacturer or retailer that is registered
3689	3689	10 in this State to a corporation, society, association,
3690	3690	11 foundation, or institution that has been issued a sales
3691	3691	12 tax exemption identification number by the Department that
3692	3692	13 assists victims of the disaster who reside within the
3693	3693	14 declared disaster area.
3694	3694	15 (31) Beginning with taxable years ending on or after
3695	3695	16 December 31, 1995 and ending with taxable years ending on
3696	3696	17 or before December 31, 2004, personal property that is
3697	3697	18 used in the performance of infrastructure repairs in this
3698	3698	19 State, including, but not limited to, municipal roads and
3699	3699	20 streets, access roads, bridges, sidewalks, waste disposal
3700	3700	21 systems, water and sewer line extensions, water
3701	3701	22 distribution and purification facilities, storm water
3702	3702	23 drainage and retention facilities, and sewage treatment
3703	3703	24 facilities, resulting from a State or federally declared
3704	3704	25 disaster in Illinois or bordering Illinois when such
3705	3705	26 repairs are initiated on facilities located in the
3706	3706
3707	3707
3708	3708
3709	3709
3710	3710
3711	3711	HB5578 - 102 - LRB103 38815 HLH 68952 b
3712	3712
3713	3713
3714	3714	HB5578- 103 -LRB103 38815 HLH 68952 b HB5578 - 103 - LRB103 38815 HLH 68952 b
3715	3715	HB5578 - 103 - LRB103 38815 HLH 68952 b
3716	3716	1 declared disaster area within 6 months after the disaster.
3717	3717	2 (32) Beginning July 1, 1999, game or game birds sold
3718	3718	3 at a "game breeding and hunting preserve area" as that
3719	3719	4 term is used in the Wildlife Code. This paragraph is
3720	3720	5 exempt from the provisions of Section 2-70.
3721	3721	6 (33) A motor vehicle, as that term is defined in
3722	3722	7 Section 1-146 of the Illinois Vehicle Code, that is
3723	3723	8 donated to a corporation, limited liability company,
3724	3724	9 society, association, foundation, or institution that is
3725	3725	10 determined by the Department to be organized and operated
3726	3726	11 exclusively for educational purposes. For purposes of this
3727	3727	12 exemption, "a corporation, limited liability company,
3728	3728	13 society, association, foundation, or institution organized
3729	3729	14 and operated exclusively for educational purposes" means
3730	3730	15 all tax-supported public schools, private schools that
3731	3731	16 offer systematic instruction in useful branches of
3732	3732	17 learning by methods common to public schools and that
3733	3733	18 compare favorably in their scope and intensity with the
3734	3734	19 course of study presented in tax-supported schools, and
3735	3735	20 vocational or technical schools or institutes organized
3736	3736	21 and operated exclusively to provide a course of study of
3737	3737	22 not less than 6 weeks duration and designed to prepare
3738	3738	23 individuals to follow a trade or to pursue a manual,
3739	3739	24 technical, mechanical, industrial, business, or commercial
3740	3740	25 occupation.
3741	3741	26 (34) Beginning January 1, 2000, personal property,
3742	3742
3743	3743
3744	3744
3745	3745
3746	3746
3747	3747	HB5578 - 103 - LRB103 38815 HLH 68952 b
3748	3748
3749	3749
3750	3750	HB5578- 104 -LRB103 38815 HLH 68952 b HB5578 - 104 - LRB103 38815 HLH 68952 b
3751	3751	HB5578 - 104 - LRB103 38815 HLH 68952 b
3752	3752	1 including food, purchased through fundraising events for
3753	3753	2 the benefit of a public or private elementary or secondary
3754	3754	3 school, a group of those schools, or one or more school
3755	3755	4 districts if the events are sponsored by an entity
3756	3756	5 recognized by the school district that consists primarily
3757	3757	6 of volunteers and includes parents and teachers of the
3758	3758	7 school children. This paragraph does not apply to
3759	3759	8 fundraising events (i) for the benefit of private home
3760	3760	9 instruction or (ii) for which the fundraising entity
3761	3761	10 purchases the personal property sold at the events from
3762	3762	11 another individual or entity that sold the property for
3763	3763	12 the purpose of resale by the fundraising entity and that
3764	3764	13 profits from the sale to the fundraising entity. This
3765	3765	14 paragraph is exempt from the provisions of Section 2-70.
3766	3766	15 (35) Beginning January 1, 2000 and through December
3767	3767	16 31, 2001, new or used automatic vending machines that
3768	3768	17 prepare and serve hot food and beverages, including
3769	3769	18 coffee, soup, and other items, and replacement parts for
3770	3770	19 these machines. Beginning January 1, 2002 and through June
3771	3771	20 30, 2003, machines and parts for machines used in
3772	3772	21 commercial, coin-operated amusement and vending business
3773	3773	22 if a use or occupation tax is paid on the gross receipts
3774	3774	23 derived from the use of the commercial, coin-operated
3775	3775	24 amusement and vending machines. This paragraph is exempt
3776	3776	25 from the provisions of Section 2-70.
3777	3777	26 (35-5) Beginning August 23, 2001 and through June 30,
3778	3778
3779	3779
3780	3780
3781	3781
3782	3782
3783	3783	HB5578 - 104 - LRB103 38815 HLH 68952 b
3784	3784
3785	3785
3786	3786	HB5578- 105 -LRB103 38815 HLH 68952 b HB5578 - 105 - LRB103 38815 HLH 68952 b
3787	3787	HB5578 - 105 - LRB103 38815 HLH 68952 b
3788	3788	1 2016, food for human consumption that is to be consumed
3789	3789	2 off the premises where it is sold (other than alcoholic
3790	3790	3 beverages, soft drinks, and food that has been prepared
3791	3791	4 for immediate consumption) and prescription and
3792	3792	5 nonprescription medicines, drugs, medical appliances, and
3793	3793	6 insulin, urine testing materials, syringes, and needles
3794	3794	7 used by diabetics, for human use, when purchased for use
3795	3795	8 by a person receiving medical assistance under Article V
3796	3796	9 of the Illinois Public Aid Code who resides in a licensed
3797	3797	10 long-term care facility, as defined in the Nursing Home
3798	3798	11 Care Act, or a licensed facility as defined in the ID/DD
3799	3799	12 Community Care Act, the MC/DD Act, or the Specialized
3800	3800	13 Mental Health Rehabilitation Act of 2013.
3801	3801	14 (36) Beginning August 2, 2001, computers and
3802	3802	15 communications equipment utilized for any hospital purpose
3803	3803	16 and equipment used in the diagnosis, analysis, or
3804	3804	17 treatment of hospital patients sold to a lessor who leases
3805	3805	18 the equipment, under a lease of one year or longer
3806	3806	19 executed or in effect at the time of the purchase, to a
3807	3807	20 hospital that has been issued an active tax exemption
3808	3808	21 identification number by the Department under Section 1g
3809	3809	22 of this Act. This paragraph is exempt from the provisions
3810	3810	23 of Section 2-70.
3811	3811	24 (37) Beginning August 2, 2001, personal property sold
3812	3812	25 to a lessor who leases the property, under a lease of one
3813	3813	26 year or longer executed or in effect at the time of the
3814	3814
3815	3815
3816	3816
3817	3817
3818	3818
3819	3819	HB5578 - 105 - LRB103 38815 HLH 68952 b
3820	3820
3821	3821
3822	3822	HB5578- 106 -LRB103 38815 HLH 68952 b HB5578 - 106 - LRB103 38815 HLH 68952 b
3823	3823	HB5578 - 106 - LRB103 38815 HLH 68952 b
3824	3824	1 purchase, to a governmental body that has been issued an
3825	3825	2 active tax exemption identification number by the
3826	3826	3 Department under Section 1g of this Act. This paragraph is
3827	3827	4 exempt from the provisions of Section 2-70.
3828	3828	5 (38) Beginning on January 1, 2002 and through June 30,
3829	3829	6 2016, tangible personal property purchased from an
3830	3830	7 Illinois retailer by a taxpayer engaged in centralized
3831	3831	8 purchasing activities in Illinois who will, upon receipt
3832	3832	9 of the property in Illinois, temporarily store the
3833	3833	10 property in Illinois (i) for the purpose of subsequently
3834	3834	11 transporting it outside this State for use or consumption
3835	3835	12 thereafter solely outside this State or (ii) for the
3836	3836	13 purpose of being processed, fabricated, or manufactured
3837	3837	14 into, attached to, or incorporated into other tangible
3838	3838	15 personal property to be transported outside this State and
3839	3839	16 thereafter used or consumed solely outside this State. The
3840	3840	17 Director of Revenue shall, pursuant to rules adopted in
3841	3841	18 accordance with the Illinois Administrative Procedure Act,
3842	3842	19 issue a permit to any taxpayer in good standing with the
3843	3843	20 Department who is eligible for the exemption under this
3844	3844	21 paragraph (38). The permit issued under this paragraph
3845	3845	22 (38) shall authorize the holder, to the extent and in the
3846	3846	23 manner specified in the rules adopted under this Act, to
3847	3847	24 purchase tangible personal property from a retailer exempt
3848	3848	25 from the taxes imposed by this Act. Taxpayers shall
3849	3849	26 maintain all necessary books and records to substantiate
3850	3850
3851	3851
3852	3852
3853	3853
3854	3854
3855	3855	HB5578 - 106 - LRB103 38815 HLH 68952 b
3856	3856
3857	3857
3858	3858	HB5578- 107 -LRB103 38815 HLH 68952 b HB5578 - 107 - LRB103 38815 HLH 68952 b
3859	3859	HB5578 - 107 - LRB103 38815 HLH 68952 b
3860	3860	1 the use and consumption of all such tangible personal
3861	3861	2 property outside of the State of Illinois.
3862	3862	3 (39) Beginning January 1, 2008, tangible personal
3863	3863	4 property used in the construction or maintenance of a
3864	3864	5 community water supply, as defined under Section 3.145 of
3865	3865	6 the Environmental Protection Act, that is operated by a
3866	3866	7 not-for-profit corporation that holds a valid water supply
3867	3867	8 permit issued under Title IV of the Environmental
3868	3868	9 Protection Act. This paragraph is exempt from the
3869	3869	10 provisions of Section 2-70.
3870	3870	11 (40) Beginning January 1, 2010 and continuing through
3871	3871	12 December 31, 2029, materials, parts, equipment,
3872	3872	13 components, and furnishings incorporated into or upon an
3873	3873	14 aircraft as part of the modification, refurbishment,
3874	3874	15 completion, replacement, repair, or maintenance of the
3875	3875	16 aircraft. This exemption includes consumable supplies used
3876	3876	17 in the modification, refurbishment, completion,
3877	3877	18 replacement, repair, and maintenance of aircraft. However,
3878	3878	19 until January 1, 2024, this exemption excludes any
3879	3879	20 materials, parts, equipment, components, and consumable
3880	3880	21 supplies used in the modification, replacement, repair,
3881	3881	22 and maintenance of aircraft engines or power plants,
3882	3882	23 whether such engines or power plants are installed or
3883	3883	24 uninstalled upon any such aircraft. "Consumable supplies"
3884	3884	25 include, but are not limited to, adhesive, tape,
3885	3885	26 sandpaper, general purpose lubricants, cleaning solution,
3886	3886
3887	3887
3888	3888
3889	3889
3890	3890
3891	3891	HB5578 - 107 - LRB103 38815 HLH 68952 b
3892	3892
3893	3893
3894	3894	HB5578- 108 -LRB103 38815 HLH 68952 b HB5578 - 108 - LRB103 38815 HLH 68952 b
3895	3895	HB5578 - 108 - LRB103 38815 HLH 68952 b
3896	3896	1 latex gloves, and protective films.
3897	3897	2 Beginning January 1, 2010 and continuing through
3898	3898	3 December 31, 2023, this exemption applies only to the sale
3899	3899	4 of qualifying tangible personal property to persons who
3900	3900	5 modify, refurbish, complete, replace, or maintain an
3901	3901	6 aircraft and who (i) hold an Air Agency Certificate and
3902	3902	7 are empowered to operate an approved repair station by the
3903	3903	8 Federal Aviation Administration, (ii) have a Class IV
3904	3904	9 Rating, and (iii) conduct operations in accordance with
3905	3905	10 Part 145 of the Federal Aviation Regulations. The
3906	3906	11 exemption does not include aircraft operated by a
3907	3907	12 commercial air carrier providing scheduled passenger air
3908	3908	13 service pursuant to authority issued under Part 121 or
3909	3909	14 Part 129 of the Federal Aviation Regulations. From January
3910	3910	15 1, 2024 through December 31, 2029, this exemption applies
3911	3911	16 only to the use of qualifying tangible personal property
3912	3912	17 by: (A) persons who modify, refurbish, complete, repair,
3913	3913	18 replace, or maintain aircraft and who (i) hold an Air
3914	3914	19 Agency Certificate and are empowered to operate an
3915	3915	20 approved repair station by the Federal Aviation
3916	3916	21 Administration, (ii) have a Class IV Rating, and (iii)
3917	3917	22 conduct operations in accordance with Part 145 of the
3918	3918	23 Federal Aviation Regulations; and (B) persons who engage
3919	3919	24 in the modification, replacement, repair, and maintenance
3920	3920	25 of aircraft engines or power plants without regard to
3921	3921	26 whether or not those persons meet the qualifications of
3922	3922
3923	3923
3924	3924
3925	3925
3926	3926
3927	3927	HB5578 - 108 - LRB103 38815 HLH 68952 b
3928	3928
3929	3929
3930	3930	HB5578- 109 -LRB103 38815 HLH 68952 b HB5578 - 109 - LRB103 38815 HLH 68952 b
3931	3931	HB5578 - 109 - LRB103 38815 HLH 68952 b
3932	3932	1 item (A).
3933	3933	2 The changes made to this paragraph (40) by Public Act
3934	3934	3 98-534 are declarative of existing law. It is the intent
3935	3935	4 of the General Assembly that the exemption under this
3936	3936	5 paragraph (40) applies continuously from January 1, 2010
3937	3937	6 through December 31, 2024; however, no claim for credit or
3938	3938	7 refund is allowed for taxes paid as a result of the
3939	3939	8 disallowance of this exemption on or after January 1, 2015
3940	3940	9 and prior to February 5, 2020 (the effective date of
3941	3941	10 Public Act 101-629).
3942	3942	11 (41) Tangible personal property sold to a
3943	3943	12 public-facilities corporation, as described in Section
3944	3944	13 11-65-10 of the Illinois Municipal Code, for purposes of
3945	3945	14 constructing or furnishing a municipal convention hall,
3946	3946	15 but only if the legal title to the municipal convention
3947	3947	16 hall is transferred to the municipality without any
3948	3948	17 further consideration by or on behalf of the municipality
3949	3949	18 at the time of the completion of the municipal convention
3950	3950	19 hall or upon the retirement or redemption of any bonds or
3951	3951	20 other debt instruments issued by the public-facilities
3952	3952	21 corporation in connection with the development of the
3953	3953	22 municipal convention hall. This exemption includes
3954	3954	23 existing public-facilities corporations as provided in
3955	3955	24 Section 11-65-25 of the Illinois Municipal Code. This
3956	3956	25 paragraph is exempt from the provisions of Section 2-70.
3957	3957	26 (42) Beginning January 1, 2017 and through December
3958	3958
3959	3959
3960	3960
3961	3961
3962	3962
3963	3963	HB5578 - 109 - LRB103 38815 HLH 68952 b
3964	3964
3965	3965
3966	3966	HB5578- 110 -LRB103 38815 HLH 68952 b HB5578 - 110 - LRB103 38815 HLH 68952 b
3967	3967	HB5578 - 110 - LRB103 38815 HLH 68952 b
3968	3968	1 31, 2026, menstrual pads, tampons, and menstrual cups.
3969	3969	2 (43) Merchandise that is subject to the Rental
3970	3970	3 Purchase Agreement Occupation and Use Tax. The purchaser
3971	3971	4 must certify that the item is purchased to be rented
3972	3972	5 subject to a rental-purchase rental purchase agreement, as
3973	3973	6 defined in the Rental-Purchase Rental Purchase Agreement
3974	3974	7 Act, and provide proof of registration under the Rental
3975	3975	8 Purchase Agreement Occupation and Use Tax Act. This
3976	3976	9 paragraph is exempt from the provisions of Section 2-70.
3977	3977	10 (44) Qualified tangible personal property used in the
3978	3978	11 construction or operation of a data center that has been
3979	3979	12 granted a certificate of exemption by the Department of
3980	3980	13 Commerce and Economic Opportunity, whether that tangible
3981	3981	14 personal property is purchased by the owner, operator, or
3982	3982	15 tenant of the data center or by a contractor or
3983	3983	16 subcontractor of the owner, operator, or tenant. Data
3984	3984	17 centers that would have qualified for a certificate of
3985	3985	18 exemption prior to January 1, 2020 had Public Act 101-31
3986	3986	19 been in effect, may apply for and obtain an exemption for
3987	3987	20 subsequent purchases of computer equipment or enabling
3988	3988	21 software purchased or leased to upgrade, supplement, or
3989	3989	22 replace computer equipment or enabling software purchased
3990	3990	23 or leased in the original investment that would have
3991	3991	24 qualified.
3992	3992	25 The Department of Commerce and Economic Opportunity
3993	3993	26 shall grant a certificate of exemption under this item
3994	3994
3995	3995
3996	3996
3997	3997
3998	3998
3999	3999	HB5578 - 110 - LRB103 38815 HLH 68952 b
4000	4000
4001	4001
4002	4002	HB5578- 111 -LRB103 38815 HLH 68952 b HB5578 - 111 - LRB103 38815 HLH 68952 b
4003	4003	HB5578 - 111 - LRB103 38815 HLH 68952 b
4004	4004	1 (44) to qualified data centers as defined by Section
4005	4005	2 605-1025 of the Department of Commerce and Economic
4006	4006	3 Opportunity Law of the Civil Administrative Code of
4007	4007	4 Illinois.
4008	4008	5 For the purposes of this item (44):
4009	4009	6 "Data center" means a building or a series of
4010	4010	7 buildings rehabilitated or constructed to house
4011	4011	8 working servers in one physical location or multiple
4012	4012	9 sites within the State of Illinois.
4013	4013	10 "Qualified tangible personal property" means:
4014	4014	11 electrical systems and equipment; climate control and
4015	4015	12 chilling equipment and systems; mechanical systems and
4016	4016	13 equipment; monitoring and secure systems; emergency
4017	4017	14 generators; hardware; computers; servers; data storage
4018	4018	15 devices; network connectivity equipment; racks;
4019	4019	16 cabinets; telecommunications cabling infrastructure;
4020	4020	17 raised floor systems; peripheral components or
4021	4021	18 systems; software; mechanical, electrical, or plumbing
4022	4022	19 systems; battery systems; cooling systems and towers;
4023	4023	20 temperature control systems; other cabling; and other
4024	4024	21 data center infrastructure equipment and systems
4025	4025	22 necessary to operate qualified tangible personal
4026	4026	23 property, including fixtures; and component parts of
4027	4027	24 any of the foregoing, including installation,
4028	4028	25 maintenance, repair, refurbishment, and replacement of
4029	4029	26 qualified tangible personal property to generate,
4030	4030
4031	4031
4032	4032
4033	4033
4034	4034
4035	4035	HB5578 - 111 - LRB103 38815 HLH 68952 b
4036	4036
4037	4037
4038	4038	HB5578- 112 -LRB103 38815 HLH 68952 b HB5578 - 112 - LRB103 38815 HLH 68952 b
4039	4039	HB5578 - 112 - LRB103 38815 HLH 68952 b
4040	4040	1 transform, transmit, distribute, or manage electricity
4041	4041	2 necessary to operate qualified tangible personal
4042	4042	3 property; and all other tangible personal property
4043	4043	4 that is essential to the operations of a computer data
4044	4044	5 center. The term "qualified tangible personal
4045	4045	6 property" also includes building materials physically
4046	4046	7 incorporated into the qualifying data center. To
4047	4047	8 document the exemption allowed under this Section, the
4048	4048	9 retailer must obtain from the purchaser a copy of the
4049	4049	10 certificate of eligibility issued by the Department of
4050	4050	11 Commerce and Economic Opportunity.
4051	4051	12 This item (44) is exempt from the provisions of
4052	4052	13 Section 2-70.
4053	4053	14 (45) Beginning January 1, 2020 and through December
4054	4054	15 31, 2020, sales of tangible personal property made by a
4055	4055	16 marketplace seller over a marketplace for which tax is due
4056	4056	17 under this Act but for which use tax has been collected and
4057	4057	18 remitted to the Department by a marketplace facilitator
4058	4058	19 under Section 2d of the Use Tax Act are exempt from tax
4059	4059	20 under this Act. A marketplace seller claiming this
4060	4060	21 exemption shall maintain books and records demonstrating
4061	4061	22 that the use tax on such sales has been collected and
4062	4062	23 remitted by a marketplace facilitator. Marketplace sellers
4063	4063	24 that have properly remitted tax under this Act on such
4064	4064	25 sales may file a claim for credit as provided in Section 6
4065	4065	26 of this Act. No claim is allowed, however, for such taxes
4066	4066
4067	4067
4068	4068
4069	4069
4070	4070
4071	4071	HB5578 - 112 - LRB103 38815 HLH 68952 b
4072	4072
4073	4073
4074	4074	HB5578- 113 -LRB103 38815 HLH 68952 b HB5578 - 113 - LRB103 38815 HLH 68952 b
4075	4075	HB5578 - 113 - LRB103 38815 HLH 68952 b
4076	4076	1 for which a credit or refund has been issued to the
4077	4077	2 marketplace facilitator under the Use Tax Act, or for
4078	4078	3 which the marketplace facilitator has filed a claim for
4079	4079	4 credit or refund under the Use Tax Act.
4080	4080	5 (46) Beginning July 1, 2022, breast pumps, breast pump
4081	4081	6 collection and storage supplies, and breast pump kits.
4082	4082	7 This item (46) is exempt from the provisions of Section
4083	4083	8 2-70. As used in this item (46):
4084	4084	9 "Breast pump" means an electrically controlled or
4085	4085	10 manually controlled pump device designed or marketed to be
4086	4086	11 used to express milk from a human breast during lactation,
4087	4087	12 including the pump device and any battery, AC adapter, or
4088	4088	13 other power supply unit that is used to power the pump
4089	4089	14 device and is packaged and sold with the pump device at the
4090	4090	15 time of sale.
4091	4091	16 "Breast pump collection and storage supplies" means
4092	4092	17 items of tangible personal property designed or marketed
4093	4093	18 to be used in conjunction with a breast pump to collect
4094	4094	19 milk expressed from a human breast and to store collected
4095	4095	20 milk until it is ready for consumption.
4096	4096	21 "Breast pump collection and storage supplies"
4097	4097	22 includes, but is not limited to: breast shields and breast
4098	4098	23 shield connectors; breast pump tubes and tubing adapters;
4099	4099	24 breast pump valves and membranes; backflow protectors and
4100	4100	25 backflow protector adaptors; bottles and bottle caps
4101	4101	26 specific to the operation of the breast pump; and breast
4102	4102
4103	4103
4104	4104
4105	4105
4106	4106
4107	4107	HB5578 - 113 - LRB103 38815 HLH 68952 b
4108	4108
4109	4109
4110	4110	HB5578- 114 -LRB103 38815 HLH 68952 b HB5578 - 114 - LRB103 38815 HLH 68952 b
4111	4111	HB5578 - 114 - LRB103 38815 HLH 68952 b
4112	4112	1 milk storage bags.
4113	4113	2 "Breast pump collection and storage supplies" does not
4114	4114	3 include: (1) bottles and bottle caps not specific to the
4115	4115	4 operation of the breast pump; (2) breast pump travel bags
4116	4116	5 and other similar carrying accessories, including ice
4117	4117	6 packs, labels, and other similar products; (3) breast pump
4118	4118	7 cleaning supplies; (4) nursing bras, bra pads, breast
4119	4119	8 shells, and other similar products; and (5) creams,
4120	4120	9 ointments, and other similar products that relieve
4121	4121	10 breastfeeding-related symptoms or conditions of the
4122	4122	11 breasts or nipples, unless sold as part of a breast pump
4123	4123	12 kit that is pre-packaged by the breast pump manufacturer
4124	4124	13 or distributor.
4125	4125	14 "Breast pump kit" means a kit that: (1) contains no
4126	4126	15 more than a breast pump, breast pump collection and
4127	4127	16 storage supplies, a rechargeable battery for operating the
4128	4128	17 breast pump, a breastmilk cooler, bottle stands, ice
4129	4129	18 packs, and a breast pump carrying case; and (2) is
4130	4130	19 pre-packaged as a breast pump kit by the breast pump
4131	4131	20 manufacturer or distributor.
4132	4132	21 (47) Tangible personal property sold by or on behalf
4133	4133	22 of the State Treasurer pursuant to the Revised Uniform
4134	4134	23 Unclaimed Property Act. This item (47) is exempt from the
4135	4135	24 provisions of Section 2-70.
4136	4136	25 (48) Beginning on January 1, 2024, tangible personal
4137	4137	26 property purchased by an active duty member of the armed
4138	4138
4139	4139
4140	4140
4141	4141
4142	4142
4143	4143	HB5578 - 114 - LRB103 38815 HLH 68952 b
4144	4144
4145	4145
4146	4146	HB5578- 115 -LRB103 38815 HLH 68952 b HB5578 - 115 - LRB103 38815 HLH 68952 b
4147	4147	HB5578 - 115 - LRB103 38815 HLH 68952 b
4148	4148	1 forces of the United States who presents valid military
4149	4149	2 identification and purchases the property using a form of
4150	4150	3 payment where the federal government is the payor. The
4151	4151	4 member of the armed forces must complete, at the point of
4152	4152	5 sale, a form prescribed by the Department of Revenue
4153	4153	6 documenting that the transaction is eligible for the
4154	4154	7 exemption under this paragraph. Retailers must keep the
4155	4155	8 form as documentation of the exemption in their records
4156	4156	9 for a period of not less than 6 years. "Armed forces of the
4157	4157	10 United States" means the United States Army, Navy, Air
4158	4158	11 Force, Marine Corps, or Coast Guard. This paragraph is
4159	4159	12 exempt from the provisions of Section 2-70.
4160	4160	13 (49) Beginning on January 1, 2025, medical appliances
4161	4161	14 and products that are classified as Class III medical
4162	4162	15 devices by the United States Food and Drug Administration
4163	4163	16 and that are used for cancer treatment pursuant to a
4164	4164	17 prescription, as well as any accessories and components
4165	4165	18 related to those appliances and devices. As used in this
4166	4166	19 paragraph, "medical appliance" means a product that was
4167	4167	20 classified as a medical appliance and was subject to a 1%
4168	4168	21 rate of tax immediately prior to the effective date of
4169	4169	22 this amendatory Act of the 103rd General Assembly,
4170	4170	23 including, but not limited to, devices used to provide
4171	4171	24 advanced life support services, as defined by Section 3.10
4172	4172	25 of the Emergency Medical Services (EMS) Systems Act, and
4173	4173	26 any other items designated as medical appliances by the
4174	4174
4175	4175
4176	4176
4177	4177
4178	4178
4179	4179	HB5578 - 115 - LRB103 38815 HLH 68952 b
4180	4180
4181	4181
4182	4182	HB5578- 116 -LRB103 38815 HLH 68952 b HB5578 - 116 - LRB103 38815 HLH 68952 b
4183	4183	HB5578 - 116 - LRB103 38815 HLH 68952 b
4184	4184	1 Department by rule. This paragraph is exempt from the
4185	4185	2 provisions of Section 2-70.
4186	4186	3 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
4187	4187	4 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
4188	4188	5 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
4189	4189	6 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
4190	4190	7 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
4191	4191	8 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
4192	4192	9 12-12-23.)
4193	4193	10 (35 ILCS 120/2-10)
4194	4194	11 Sec. 2-10. Rate of tax. Unless otherwise provided in this
4195	4195	12 Section, the tax imposed by this Act is at the rate of 6.25% of
4196	4196	13 gross receipts from sales of tangible personal property made
4197	4197	14 in the course of business.
4198	4198	15 Beginning on July 1, 2000 and through December 31, 2000,
4199	4199	16 with respect to motor fuel, as defined in Section 1.1 of the
4200	4200	17 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4201	4201	18 the Use Tax Act, the tax is imposed at the rate of 1.25%.
4202	4202	19 Beginning on August 6, 2010 through August 15, 2010, and
4203	4203	20 beginning again on August 5, 2022 through August 14, 2022,
4204	4204	21 with respect to sales tax holiday items as defined in Section
4205	4205	22 2-8 of this Act, the tax is imposed at the rate of 1.25%.
4206	4206	23 Within 14 days after July 1, 2000 (the effective date of
4207	4207	24 Public Act 91-872), each retailer of motor fuel and gasohol
4208	4208	25 shall cause the following notice to be posted in a prominently
4209	4209
4210	4210
4211	4211
4212	4212
4213	4213
4214	4214	HB5578 - 116 - LRB103 38815 HLH 68952 b
4215	4215
4216	4216
4217	4217	HB5578- 117 -LRB103 38815 HLH 68952 b HB5578 - 117 - LRB103 38815 HLH 68952 b
4218	4218	HB5578 - 117 - LRB103 38815 HLH 68952 b
4219	4219	1 visible place on each retail dispensing device that is used to
4220	4220	2 dispense motor fuel or gasohol in the State of Illinois: "As of
4221	4221	3 July 1, 2000, the State of Illinois has eliminated the State's
4222	4222	4 share of sales tax on motor fuel and gasohol through December
4223	4223	5 31, 2000. The price on this pump should reflect the
4224	4224	6 elimination of the tax." The notice shall be printed in bold
4225	4225	7 print on a sign that is no smaller than 4 inches by 8 inches.
4226	4226	8 The sign shall be clearly visible to customers. Any retailer
4227	4227	9 who fails to post or maintain a required sign through December
4228	4228	10 31, 2000 is guilty of a petty offense for which the fine shall
4229	4229	11 be $500 per day per each retail premises where a violation
4230	4230	12 occurs.
4231	4231	13 With respect to gasohol, as defined in the Use Tax Act, the
4232	4232	14 tax imposed by this Act applies to (i) 70% of the proceeds of
4233	4233	15 sales made on or after January 1, 1990, and before July 1,
4234	4234	16 2003, (ii) 80% of the proceeds of sales made on or after July
4235	4235	17 1, 2003 and on or before July 1, 2017, (iii) 100% of the
4236	4236	18 proceeds of sales made after July 1, 2017 and prior to January
4237	4237	19 1, 2024, (iv) 90% of the proceeds of sales made on or after
4238	4238	20 January 1, 2024 and on or before December 31, 2028, and (v)
4239	4239	21 100% of the proceeds of sales made after December 31, 2028. If,
4240	4240	22 at any time, however, the tax under this Act on sales of
4241	4241	23 gasohol, as defined in the Use Tax Act, is imposed at the rate
4242	4242	24 of 1.25%, then the tax imposed by this Act applies to 100% of
4243	4243	25 the proceeds of sales of gasohol made during that time.
4244	4244	26 With respect to mid-range ethanol blends, as defined in
4245	4245
4246	4246
4247	4247
4248	4248
4249	4249
4250	4250	HB5578 - 117 - LRB103 38815 HLH 68952 b
4251	4251
4252	4252
4253	4253	HB5578- 118 -LRB103 38815 HLH 68952 b HB5578 - 118 - LRB103 38815 HLH 68952 b
4254	4254	HB5578 - 118 - LRB103 38815 HLH 68952 b
4255	4255	1 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4256	4256	2 applies to (i) 80% of the proceeds of sales made on or after
4257	4257	3 January 1, 2024 and on or before December 31, 2028 and (ii)
4258	4258	4 100% of the proceeds of sales made after December 31, 2028. If,
4259	4259	5 at any time, however, the tax under this Act on sales of
4260	4260	6 mid-range ethanol blends is imposed at the rate of 1.25%, then
4261	4261	7 the tax imposed by this Act applies to 100% of the proceeds of
4262	4262	8 sales of mid-range ethanol blends made during that time.
4263	4263	9 With respect to majority blended ethanol fuel, as defined
4264	4264	10 in the Use Tax Act, the tax imposed by this Act does not apply
4265	4265	11 to the proceeds of sales made on or after July 1, 2003 and on
4266	4266	12 or before December 31, 2028 but applies to 100% of the proceeds
4267	4267	13 of sales made thereafter.
4268	4268	14 With respect to biodiesel blends, as defined in the Use
4269	4269	15 Tax Act, with no less than 1% and no more than 10% biodiesel,
4270	4270	16 the tax imposed by this Act applies to (i) 80% of the proceeds
4271	4271	17 of sales made on or after July 1, 2003 and on or before
4272	4272	18 December 31, 2018 and (ii) 100% of the proceeds of sales made
4273	4273	19 after December 31, 2018 and before January 1, 2024. On and
4274	4274	20 after January 1, 2024 and on or before December 31, 2030, the
4275	4275	21 taxation of biodiesel, renewable diesel, and biodiesel blends
4276	4276	22 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4277	4277	23 at any time, however, the tax under this Act on sales of
4278	4278	24 biodiesel blends, as defined in the Use Tax Act, with no less
4279	4279	25 than 1% and no more than 10% biodiesel is imposed at the rate
4280	4280	26 of 1.25%, then the tax imposed by this Act applies to 100% of
4281	4281
4282	4282
4283	4283
4284	4284
4285	4285
4286	4286	HB5578 - 118 - LRB103 38815 HLH 68952 b
4287	4287
4288	4288
4289	4289	HB5578- 119 -LRB103 38815 HLH 68952 b HB5578 - 119 - LRB103 38815 HLH 68952 b
4290	4290	HB5578 - 119 - LRB103 38815 HLH 68952 b
4291	4291	1 the proceeds of sales of biodiesel blends with no less than 1%
4292	4292	2 and no more than 10% biodiesel made during that time.
4293	4293	3 With respect to biodiesel, as defined in the Use Tax Act,
4294	4294	4 and biodiesel blends, as defined in the Use Tax Act, with more
4295	4295	5 than 10% but no more than 99% biodiesel, the tax imposed by
4296	4296	6 this Act does not apply to the proceeds of sales made on or
4297	4297	7 after July 1, 2003 and on or before December 31, 2023. On and
4298	4298	8 after January 1, 2024 and on or before December 31, 2030, the
4299	4299	9 taxation of biodiesel, renewable diesel, and biodiesel blends
4300	4300	10 shall be as provided in Section 3-5.1 of the Use Tax Act.
4301	4301	11 Until July 1, 2022 and beginning again on July 1, 2023,
4302	4302	12 with respect to food for human consumption that is to be
4303	4303	13 consumed off the premises where it is sold (other than
4304	4304	14 alcoholic beverages, food consisting of or infused with adult
4305	4305	15 use cannabis, soft drinks, and food that has been prepared for
4306	4306	16 immediate consumption), the tax is imposed at the rate of 1%.
4307	4307	17 Beginning July 1, 2022 and until July 1, 2023, with respect to
4308	4308	18 food for human consumption that is to be consumed off the
4309	4309	19 premises where it is sold (other than alcoholic beverages,
4310	4310	20 food consisting of or infused with adult use cannabis, soft
4311	4311	21 drinks, and food that has been prepared for immediate
4312	4312	22 consumption), the tax is imposed at the rate of 0%.
4313	4313	23 With respect to prescription and nonprescription
4314	4314	24 medicines, drugs, medical appliances, products classified as
4315	4315	25 Class III medical devices by the United States Food and Drug
4316	4316	26 Administration that are used for cancer treatment pursuant to
4317	4317
4318	4318
4319	4319
4320	4320
4321	4321
4322	4322	HB5578 - 119 - LRB103 38815 HLH 68952 b
4323	4323
4324	4324
4325	4325	HB5578- 120 -LRB103 38815 HLH 68952 b HB5578 - 120 - LRB103 38815 HLH 68952 b
4326	4326	HB5578 - 120 - LRB103 38815 HLH 68952 b
4327	4327	1 a prescription, as well as any accessories and components
4328	4328	2 related to those devices, modifications to a motor vehicle for
4329	4329	3 the purpose of rendering it usable by a person with a
4330	4330	4 disability, and insulin, blood sugar testing materials,
4331	4331	5 syringes, and needles used by human diabetics (except to the
4332	4332	6 extent that those items are exempt by the Department under
4333	4333	7 paragraph (49) of Section 2-5), the tax is imposed at the rate
4334	4334	8 of 1%. For the purposes of this Section, until September 1,
4335	4335	9 2009: the term "soft drinks" means any complete, finished,
4336	4336	10 ready-to-use, non-alcoholic drink, whether carbonated or not,
4337	4337	11 including, but not limited to, soda water, cola, fruit juice,
4338	4338	12 vegetable juice, carbonated water, and all other preparations
4339	4339	13 commonly known as soft drinks of whatever kind or description
4340	4340	14 that are contained in any closed or sealed bottle, can,
4341	4341	15 carton, or container, regardless of size; but "soft drinks"
4342	4342	16 does not include coffee, tea, non-carbonated water, infant
4343	4343	17 formula, milk or milk products as defined in the Grade A
4344	4344	18 Pasteurized Milk and Milk Products Act, or drinks containing
4345	4345	19 50% or more natural fruit or vegetable juice.
4346	4346	20 Notwithstanding any other provisions of this Act,
4347	4347	21 beginning September 1, 2009, "soft drinks" means non-alcoholic
4348	4348	22 beverages that contain natural or artificial sweeteners. "Soft
4349	4349	23 drinks" does not include beverages that contain milk or milk
4350	4350	24 products, soy, rice or similar milk substitutes, or greater
4351	4351	25 than 50% of vegetable or fruit juice by volume.
4352	4352	26 Until August 1, 2009, and notwithstanding any other
4353	4353
4354	4354
4355	4355
4356	4356
4357	4357
4358	4358	HB5578 - 120 - LRB103 38815 HLH 68952 b
4359	4359
4360	4360
4361	4361	HB5578- 121 -LRB103 38815 HLH 68952 b HB5578 - 121 - LRB103 38815 HLH 68952 b
4362	4362	HB5578 - 121 - LRB103 38815 HLH 68952 b
4363	4363	1 provisions of this Act, "food for human consumption that is to
4364	4364	2 be consumed off the premises where it is sold" includes all
4365	4365	3 food sold through a vending machine, except soft drinks and
4366	4366	4 food products that are dispensed hot from a vending machine,
4367	4367	5 regardless of the location of the vending machine. Beginning
4368	4368	6 August 1, 2009, and notwithstanding any other provisions of
4369	4369	7 this Act, "food for human consumption that is to be consumed
4370	4370	8 off the premises where it is sold" includes all food sold
4371	4371	9 through a vending machine, except soft drinks, candy, and food
4372	4372	10 products that are dispensed hot from a vending machine,
4373	4373	11 regardless of the location of the vending machine.
4374	4374	12 Notwithstanding any other provisions of this Act,
4375	4375	13 beginning September 1, 2009, "food for human consumption that
4376	4376	14 is to be consumed off the premises where it is sold" does not
4377	4377	15 include candy. For purposes of this Section, "candy" means a
4378	4378	16 preparation of sugar, honey, or other natural or artificial
4379	4379	17 sweeteners in combination with chocolate, fruits, nuts or
4380	4380	18 other ingredients or flavorings in the form of bars, drops, or
4381	4381	19 pieces. "Candy" does not include any preparation that contains
4382	4382	20 flour or requires refrigeration.
4383	4383	21 Notwithstanding any other provisions of this Act,
4384	4384	22 beginning September 1, 2009, "nonprescription medicines and
4385	4385	23 drugs" does not include grooming and hygiene products. For
4386	4386	24 purposes of this Section, "grooming and hygiene products"
4387	4387	25 includes, but is not limited to, soaps and cleaning solutions,
4388	4388	26 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4389	4389
4390	4390
4391	4391
4392	4392
4393	4393
4394	4394	HB5578 - 121 - LRB103 38815 HLH 68952 b
4395	4395
4396	4396
4397	4397	HB5578- 122 -LRB103 38815 HLH 68952 b HB5578 - 122 - LRB103 38815 HLH 68952 b
4398	4398	HB5578 - 122 - LRB103 38815 HLH 68952 b
4399	4399	1 lotions and screens, unless those products are available by
4400	4400	2 prescription only, regardless of whether the products meet the
4401	4401	3 definition of "over-the-counter-drugs". For the purposes of
4402	4402	4 this paragraph, "over-the-counter-drug" means a drug for human
4403	4403	5 use that contains a label that identifies the product as a drug
4404	4404	6 as required by 21 CFR 201.66. The "over-the-counter-drug"
4405	4405	7 label includes:
4406	4406	8 (A) a "Drug Facts" panel; or
4407	4407	9 (B) a statement of the "active ingredient(s)" with a
4408	4408	10 list of those ingredients contained in the compound,
4409	4409	11 substance or preparation.
4410	4410	12 Beginning on January 1, 2014 (the effective date of Public
4411	4411	13 Act 98-122), "prescription and nonprescription medicines and
4412	4412	14 drugs" includes medical cannabis purchased from a registered
4413	4413	15 dispensing organization under the Compassionate Use of Medical
4414	4414	16 Cannabis Program Act.
4415	4415	17 As used in this Section, "adult use cannabis" means
4416	4416	18 cannabis subject to tax under the Cannabis Cultivation
4417	4417	19 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4418	4418	20 and does not include cannabis subject to tax under the
4419	4419	21 Compassionate Use of Medical Cannabis Program Act.
4420	4420	22 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
4421	4421	23 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
4422	4422	24 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
4423	4423	25 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
4424	4424	26 Section 99. Effective date. This Act takes effect on
4425	4425
4426	4426
4427	4427
4428	4428
4429	4429
4430	4430	HB5578 - 122 - LRB103 38815 HLH 68952 b
4431	4431
4432	4432
4433	4433	HB5578- 123 -LRB103 38815 HLH 68952 b HB5578 - 123 - LRB103 38815 HLH 68952 b
4434	4434	HB5578 - 123 - LRB103 38815 HLH 68952 b
4435	4435
4436	4436
4437	4437
4438	4438
4439	4439
4440	4440	HB5578 - 123 - LRB103 38815 HLH 68952 b