Illinois 2023-2024 Regular Session

Illinois House Bill HB5901 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 HB5901 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts. LRB103 42819 HLH 76068 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5901 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts. LRB103 42819 HLH 76068 b LRB103 42819 HLH 76068 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5901 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
4	4	35 ILCS 105/3-5
5	5	35 ILCS 110/3-5
6	6	35 ILCS 115/3-5
7	7	35 ILCS 120/2-5
8	8	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts.
9	9	LRB103 42819 HLH 76068 b LRB103 42819 HLH 76068 b
10	10	LRB103 42819 HLH 76068 b
11	11	A BILL FOR
12	12	HB5901LRB103 42819 HLH 76068 b HB5901 LRB103 42819 HLH 76068 b
13	13	HB5901 LRB103 42819 HLH 76068 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-5 as follows:
19	19	6 (35 ILCS 105/3-5)
20	20	7 Sec. 3-5. Exemptions. Use of the following tangible
21	21	8 personal property is exempt from the tax imposed by this Act:
22	22	9 (1) Personal property purchased from a corporation,
23	23	10 society, association, foundation, institution, or
24	24	11 organization, other than a limited liability company, that is
25	25	12 organized and operated as a not-for-profit service enterprise
26	26	13 for the benefit of persons 65 years of age or older if the
27	27	14 personal property was not purchased by the enterprise for the
28	28	15 purpose of resale by the enterprise.
29	29	16 (2) Personal property purchased by a not-for-profit
30	30	17 Illinois county fair association for use in conducting,
31	31	18 operating, or promoting the county fair.
32	32	19 (3) Personal property purchased by a not-for-profit arts
33	33	20 or cultural organization that establishes, by proof required
34	34	21 by the Department by rule, that it has received an exemption
35	35	22 under Section 501(c)(3) of the Internal Revenue Code and that
36	36	23 is organized and operated primarily for the presentation or
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40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5901 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED:
41	41	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5
42	42	35 ILCS 105/3-5
43	43	35 ILCS 110/3-5
44	44	35 ILCS 115/3-5
45	45	35 ILCS 120/2-5
46	46	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain materials furnished to a common interest community association pursuant to a contract entered into with the highway commissioner of a road district are exempt from the taxes imposed under those Acts.
47	47	LRB103 42819 HLH 76068 b LRB103 42819 HLH 76068 b
48	48	LRB103 42819 HLH 76068 b
49	49	A BILL FOR
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55	55	35 ILCS 105/3-5
56	56	35 ILCS 110/3-5
57	57	35 ILCS 115/3-5
58	58	35 ILCS 120/2-5
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77	77	1 support of arts or cultural programming, activities, or
78	78	2 services. These organizations include, but are not limited to,
79	79	3 music and dramatic arts organizations such as symphony
80	80	4 orchestras and theatrical groups, arts and cultural service
81	81	5 organizations, local arts councils, visual arts organizations,
82	82	6 and media arts organizations. On and after July 1, 2001 (the
83	83	7 effective date of Public Act 92-35), however, an entity
84	84	8 otherwise eligible for this exemption shall not make tax-free
85	85	9 purchases unless it has an active identification number issued
86	86	10 by the Department.
87	87	11 (4) Except as otherwise provided in this Act, personal
88	88	12 property purchased by a governmental body, by a corporation,
89	89	13 society, association, foundation, or institution organized and
90	90	14 operated exclusively for charitable, religious, or educational
91	91	15 purposes, or by a not-for-profit corporation, society,
92	92	16 association, foundation, institution, or organization that has
93	93	17 no compensated officers or employees and that is organized and
94	94	18 operated primarily for the recreation of persons 55 years of
95	95	19 age or older. A limited liability company may qualify for the
96	96	20 exemption under this paragraph only if the limited liability
97	97	21 company is organized and operated exclusively for educational
98	98	22 purposes. On and after July 1, 1987, however, no entity
99	99	23 otherwise eligible for this exemption shall make tax-free
100	100	24 purchases unless it has an active exemption identification
101	101	25 number issued by the Department.
102	102	26 (5) Until July 1, 2003, a passenger car that is a
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113	113	1 replacement vehicle to the extent that the purchase price of
114	114	2 the car is subject to the Replacement Vehicle Tax.
115	115	3 (6) Until July 1, 2003 and beginning again on September 1,
116	116	4 2004 through August 30, 2014, graphic arts machinery and
117	117	5 equipment, including repair and replacement parts, both new
118	118	6 and used, and including that manufactured on special order,
119	119	7 certified by the purchaser to be used primarily for graphic
120	120	8 arts production, and including machinery and equipment
121	121	9 purchased for lease. Equipment includes chemicals or chemicals
122	122	10 acting as catalysts but only if the chemicals or chemicals
123	123	11 acting as catalysts effect a direct and immediate change upon
124	124	12 a graphic arts product. Beginning on July 1, 2017, graphic
125	125	13 arts machinery and equipment is included in the manufacturing
126	126	14 and assembling machinery and equipment exemption under
127	127	15 paragraph (18).
128	128	16 (7) Farm chemicals.
129	129	17 (8) Legal tender, currency, medallions, or gold or silver
130	130	18 coinage issued by the State of Illinois, the government of the
131	131	19 United States of America, or the government of any foreign
132	132	20 country, and bullion.
133	133	21 (9) Personal property purchased from a teacher-sponsored
134	134	22 student organization affiliated with an elementary or
135	135	23 secondary school located in Illinois.
136	136	24 (10) A motor vehicle that is used for automobile renting,
137	137	25 as defined in the Automobile Renting Occupation and Use Tax
138	138	26 Act.
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149	149	1 (11) Farm machinery and equipment, both new and used,
150	150	2 including that manufactured on special order, certified by the
151	151	3 purchaser to be used primarily for production agriculture or
152	152	4 State or federal agricultural programs, including individual
153	153	5 replacement parts for the machinery and equipment, including
154	154	6 machinery and equipment purchased for lease, and including
155	155	7 implements of husbandry defined in Section 1-130 of the
156	156	8 Illinois Vehicle Code, farm machinery and agricultural
157	157	9 chemical and fertilizer spreaders, and nurse wagons required
158	158	10 to be registered under Section 3-809 of the Illinois Vehicle
159	159	11 Code, but excluding other motor vehicles required to be
160	160	12 registered under the Illinois Vehicle Code. Horticultural
161	161	13 polyhouses or hoop houses used for propagating, growing, or
162	162	14 overwintering plants shall be considered farm machinery and
163	163	15 equipment under this item (11). Agricultural chemical tender
164	164	16 tanks and dry boxes shall include units sold separately from a
165	165	17 motor vehicle required to be licensed and units sold mounted
166	166	18 on a motor vehicle required to be licensed if the selling price
167	167	19 of the tender is separately stated.
168	168	20 Farm machinery and equipment shall include precision
169	169	21 farming equipment that is installed or purchased to be
170	170	22 installed on farm machinery and equipment, including, but not
171	171	23 limited to, tractors, harvesters, sprayers, planters, seeders,
172	172	24 or spreaders. Precision farming equipment includes, but is not
173	173	25 limited to, soil testing sensors, computers, monitors,
174	174	26 software, global positioning and mapping systems, and other
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185	185	1 such equipment.
186	186	2 Farm machinery and equipment also includes computers,
187	187	3 sensors, software, and related equipment used primarily in the
188	188	4 computer-assisted operation of production agriculture
189	189	5 facilities, equipment, and activities such as, but not limited
190	190	6 to, the collection, monitoring, and correlation of animal and
191	191	7 crop data for the purpose of formulating animal diets and
192	192	8 agricultural chemicals.
193	193	9 Beginning on January 1, 2024, farm machinery and equipment
194	194	10 also includes electrical power generation equipment used
195	195	11 primarily for production agriculture.
196	196	12 This item (11) is exempt from the provisions of Section
197	197	13 3-90.
198	198	14 (12) Until June 30, 2013, fuel and petroleum products sold
199	199	15 to or used by an air common carrier, certified by the carrier
200	200	16 to be used for consumption, shipment, or storage in the
201	201	17 conduct of its business as an air common carrier, for a flight
202	202	18 destined for or returning from a location or locations outside
203	203	19 the United States without regard to previous or subsequent
204	204	20 domestic stopovers.
205	205	21 Beginning July 1, 2013, fuel and petroleum products sold
206	206	22 to or used by an air carrier, certified by the carrier to be
207	207	23 used for consumption, shipment, or storage in the conduct of
208	208	24 its business as an air common carrier, for a flight that (i) is
209	209	25 engaged in foreign trade or is engaged in trade between the
210	210	26 United States and any of its possessions and (ii) transports
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221	221	1 at least one individual or package for hire from the city of
222	222	2 origination to the city of final destination on the same
223	223	3 aircraft, without regard to a change in the flight number of
224	224	4 that aircraft.
225	225	5 (13) Proceeds of mandatory service charges separately
226	226	6 stated on customers' bills for the purchase and consumption of
227	227	7 food and beverages purchased at retail from a retailer, to the
228	228	8 extent that the proceeds of the service charge are in fact
229	229	9 turned over as tips or as a substitute for tips to the
230	230	10 employees who participate directly in preparing, serving,
231	231	11 hosting or cleaning up the food or beverage function with
232	232	12 respect to which the service charge is imposed.
233	233	13 (14) Until July 1, 2003, oil field exploration, drilling,
234	234	14 and production equipment, including (i) rigs and parts of
235	235	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
236	236	16 pipe and tubular goods, including casing and drill strings,
237	237	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
238	238	18 lines, (v) any individual replacement part for oil field
239	239	19 exploration, drilling, and production equipment, and (vi)
240	240	20 machinery and equipment purchased for lease; but excluding
241	241	21 motor vehicles required to be registered under the Illinois
242	242	22 Vehicle Code.
243	243	23 (15) Photoprocessing machinery and equipment, including
244	244	24 repair and replacement parts, both new and used, including
245	245	25 that manufactured on special order, certified by the purchaser
246	246	26 to be used primarily for photoprocessing, and including
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257	257	1 photoprocessing machinery and equipment purchased for lease.
258	258	2 (16) Until July 1, 2028, coal and aggregate exploration,
259	259	3 mining, off-highway hauling, processing, maintenance, and
260	260	4 reclamation equipment, including replacement parts and
261	261	5 equipment, and including equipment purchased for lease, but
262	262	6 excluding motor vehicles required to be registered under the
263	263	7 Illinois Vehicle Code. The changes made to this Section by
264	264	8 Public Act 97-767 apply on and after July 1, 2003, but no claim
265	265	9 for credit or refund is allowed on or after August 16, 2013
266	266	10 (the effective date of Public Act 98-456) for such taxes paid
267	267	11 during the period beginning July 1, 2003 and ending on August
268	268	12 16, 2013 (the effective date of Public Act 98-456).
269	269	13 (17) Until July 1, 2003, distillation machinery and
270	270	14 equipment, sold as a unit or kit, assembled or installed by the
271	271	15 retailer, certified by the user to be used only for the
272	272	16 production of ethyl alcohol that will be used for consumption
273	273	17 as motor fuel or as a component of motor fuel for the personal
274	274	18 use of the user, and not subject to sale or resale.
275	275	19 (18) Manufacturing and assembling machinery and equipment
276	276	20 used primarily in the process of manufacturing or assembling
277	277	21 tangible personal property for wholesale or retail sale or
278	278	22 lease, whether that sale or lease is made directly by the
279	279	23 manufacturer or by some other person, whether the materials
280	280	24 used in the process are owned by the manufacturer or some other
281	281	25 person, or whether that sale or lease is made apart from or as
282	282	26 an incident to the seller's engaging in the service occupation
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293	293	1 of producing machines, tools, dies, jigs, patterns, gauges, or
294	294	2 other similar items of no commercial value on special order
295	295	3 for a particular purchaser. The exemption provided by this
296	296	4 paragraph (18) includes production related tangible personal
297	297	5 property, as defined in Section 3-50, purchased on or after
298	298	6 July 1, 2019. The exemption provided by this paragraph (18)
299	299	7 does not include machinery and equipment used in (i) the
300	300	8 generation of electricity for wholesale or retail sale; (ii)
301	301	9 the generation or treatment of natural or artificial gas for
302	302	10 wholesale or retail sale that is delivered to customers
303	303	11 through pipes, pipelines, or mains; or (iii) the treatment of
304	304	12 water for wholesale or retail sale that is delivered to
305	305	13 customers through pipes, pipelines, or mains. The provisions
306	306	14 of Public Act 98-583 are declaratory of existing law as to the
307	307	15 meaning and scope of this exemption. Beginning on July 1,
308	308	16 2017, the exemption provided by this paragraph (18) includes,
309	309	17 but is not limited to, graphic arts machinery and equipment,
310	310	18 as defined in paragraph (6) of this Section.
311	311	19 (19) Personal property delivered to a purchaser or
312	312	20 purchaser's donee inside Illinois when the purchase order for
313	313	21 that personal property was received by a florist located
314	314	22 outside Illinois who has a florist located inside Illinois
315	315	23 deliver the personal property.
316	316	24 (20) Semen used for artificial insemination of livestock
317	317	25 for direct agricultural production.
318	318	26 (21) Horses, or interests in horses, registered with and
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329	329	1 meeting the requirements of any of the Arabian Horse Club
330	330	2 Registry of America, Appaloosa Horse Club, American Quarter
331	331	3 Horse Association, United States Trotting Association, or
332	332	4 Jockey Club, as appropriate, used for purposes of breeding or
333	333	5 racing for prizes. This item (21) is exempt from the
334	334	6 provisions of Section 3-90, and the exemption provided for
335	335	7 under this item (21) applies for all periods beginning May 30,
336	336	8 1995, but no claim for credit or refund is allowed on or after
337	337	9 January 1, 2008 for such taxes paid during the period
338	338	10 beginning May 30, 2000 and ending on January 1, 2008.
339	339	11 (22) Computers and communications equipment utilized for
340	340	12 any hospital purpose and equipment used in the diagnosis,
341	341	13 analysis, or treatment of hospital patients purchased by a
342	342	14 lessor who leases the equipment, under a lease of one year or
343	343	15 longer executed or in effect at the time the lessor would
344	344	16 otherwise be subject to the tax imposed by this Act, to a
345	345	17 hospital that has been issued an active tax exemption
346	346	18 identification number by the Department under Section 1g of
347	347	19 the Retailers' Occupation Tax Act. If the equipment is leased
348	348	20 in a manner that does not qualify for this exemption or is used
349	349	21 in any other non-exempt manner, the lessor shall be liable for
350	350	22 the tax imposed under this Act or the Service Use Tax Act, as
351	351	23 the case may be, based on the fair market value of the property
352	352	24 at the time the non-qualifying use occurs. No lessor shall
353	353	25 collect or attempt to collect an amount (however designated)
354	354	26 that purports to reimburse that lessor for the tax imposed by
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365	365	1 this Act or the Service Use Tax Act, as the case may be, if the
366	366	2 tax has not been paid by the lessor. If a lessor improperly
367	367	3 collects any such amount from the lessee, the lessee shall
368	368	4 have a legal right to claim a refund of that amount from the
369	369	5 lessor. If, however, that amount is not refunded to the lessee
370	370	6 for any reason, the lessor is liable to pay that amount to the
371	371	7 Department.
372	372	8 (23) Personal property purchased by a lessor who leases
373	373	9 the property, under a lease of one year or longer executed or
374	374	10 in effect at the time the lessor would otherwise be subject to
375	375	11 the tax imposed by this Act, to a governmental body that has
376	376	12 been issued an active sales tax exemption identification
377	377	13 number by the Department under Section 1g of the Retailers'
378	378	14 Occupation Tax Act. If the property is leased in a manner that
379	379	15 does not qualify for this exemption or used in any other
380	380	16 non-exempt manner, the lessor shall be liable for the tax
381	381	17 imposed under this Act or the Service Use Tax Act, as the case
382	382	18 may be, based on the fair market value of the property at the
383	383	19 time the non-qualifying use occurs. No lessor shall collect or
384	384	20 attempt to collect an amount (however designated) that
385	385	21 purports to reimburse that lessor for the tax imposed by this
386	386	22 Act or the Service Use Tax Act, as the case may be, if the tax
387	387	23 has not been paid by the lessor. If a lessor improperly
388	388	24 collects any such amount from the lessee, the lessee shall
389	389	25 have a legal right to claim a refund of that amount from the
390	390	26 lessor. If, however, that amount is not refunded to the lessee
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401	401	1 for any reason, the lessor is liable to pay that amount to the
402	402	2 Department.
403	403	3 (24) Beginning with taxable years ending on or after
404	404	4 December 31, 1995 and ending with taxable years ending on or
405	405	5 before December 31, 2004, personal property that is donated
406	406	6 for disaster relief to be used in a State or federally declared
407	407	7 disaster area in Illinois or bordering Illinois by a
408	408	8 manufacturer or retailer that is registered in this State to a
409	409	9 corporation, society, association, foundation, or institution
410	410	10 that has been issued a sales tax exemption identification
411	411	11 number by the Department that assists victims of the disaster
412	412	12 who reside within the declared disaster area.
413	413	13 (25) Beginning with taxable years ending on or after
414	414	14 December 31, 1995 and ending with taxable years ending on or
415	415	15 before December 31, 2004, personal property that is used in
416	416	16 the performance of infrastructure repairs in this State,
417	417	17 including, but not limited to, municipal roads and streets,
418	418	18 access roads, bridges, sidewalks, waste disposal systems,
419	419	19 water and sewer line extensions, water distribution and
420	420	20 purification facilities, storm water drainage and retention
421	421	21 facilities, and sewage treatment facilities, resulting from a
422	422	22 State or federally declared disaster in Illinois or bordering
423	423	23 Illinois when such repairs are initiated on facilities located
424	424	24 in the declared disaster area within 6 months after the
425	425	25 disaster.
426	426	26 (26) Beginning July 1, 1999, game or game birds purchased
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437	437	1 at a "game breeding and hunting preserve area" as that term is
438	438	2 used in the Wildlife Code. This paragraph is exempt from the
439	439	3 provisions of Section 3-90.
440	440	4 (27) A motor vehicle, as that term is defined in Section
441	441	5 1-146 of the Illinois Vehicle Code, that is donated to a
442	442	6 corporation, limited liability company, society, association,
443	443	7 foundation, or institution that is determined by the
444	444	8 Department to be organized and operated exclusively for
445	445	9 educational purposes. For purposes of this exemption, "a
446	446	10 corporation, limited liability company, society, association,
447	447	11 foundation, or institution organized and operated exclusively
448	448	12 for educational purposes" means all tax-supported public
449	449	13 schools, private schools that offer systematic instruction in
450	450	14 useful branches of learning by methods common to public
451	451	15 schools and that compare favorably in their scope and
452	452	16 intensity with the course of study presented in tax-supported
453	453	17 schools, and vocational or technical schools or institutes
454	454	18 organized and operated exclusively to provide a course of
455	455	19 study of not less than 6 weeks duration and designed to prepare
456	456	20 individuals to follow a trade or to pursue a manual,
457	457	21 technical, mechanical, industrial, business, or commercial
458	458	22 occupation.
459	459	23 (28) Beginning January 1, 2000, personal property,
460	460	24 including food, purchased through fundraising events for the
461	461	25 benefit of a public or private elementary or secondary school,
462	462	26 a group of those schools, or one or more school districts if
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473	473	1 the events are sponsored by an entity recognized by the school
474	474	2 district that consists primarily of volunteers and includes
475	475	3 parents and teachers of the school children. This paragraph
476	476	4 does not apply to fundraising events (i) for the benefit of
477	477	5 private home instruction or (ii) for which the fundraising
478	478	6 entity purchases the personal property sold at the events from
479	479	7 another individual or entity that sold the property for the
480	480	8 purpose of resale by the fundraising entity and that profits
481	481	9 from the sale to the fundraising entity. This paragraph is
482	482	10 exempt from the provisions of Section 3-90.
483	483	11 (29) Beginning January 1, 2000 and through December 31,
484	484	12 2001, new or used automatic vending machines that prepare and
485	485	13 serve hot food and beverages, including coffee, soup, and
486	486	14 other items, and replacement parts for these machines.
487	487	15 Beginning January 1, 2002 and through June 30, 2003, machines
488	488	16 and parts for machines used in commercial, coin-operated
489	489	17 amusement and vending business if a use or occupation tax is
490	490	18 paid on the gross receipts derived from the use of the
491	491	19 commercial, coin-operated amusement and vending machines. This
492	492	20 paragraph is exempt from the provisions of Section 3-90.
493	493	21 (30) Beginning January 1, 2001 and through June 30, 2016,
494	494	22 food for human consumption that is to be consumed off the
495	495	23 premises where it is sold (other than alcoholic beverages,
496	496	24 soft drinks, and food that has been prepared for immediate
497	497	25 consumption) and prescription and nonprescription medicines,
498	498	26 drugs, medical appliances, and insulin, urine testing
499	499
500	500
501	501
502	502
503	503
504	504	HB5901 - 13 - LRB103 42819 HLH 76068 b
505	505
506	506
507	507	HB5901- 14 -LRB103 42819 HLH 76068 b HB5901 - 14 - LRB103 42819 HLH 76068 b
508	508	HB5901 - 14 - LRB103 42819 HLH 76068 b
509	509	1 materials, syringes, and needles used by diabetics, for human
510	510	2 use, when purchased for use by a person receiving medical
511	511	3 assistance under Article V of the Illinois Public Aid Code who
512	512	4 resides in a licensed long-term care facility, as defined in
513	513	5 the Nursing Home Care Act, or in a licensed facility as defined
514	514	6 in the ID/DD Community Care Act, the MC/DD Act, or the
515	515	7 Specialized Mental Health Rehabilitation Act of 2013.
516	516	8 (31) Beginning on August 2, 2001 (the effective date of
517	517	9 Public Act 92-227), computers and communications equipment
518	518	10 utilized for any hospital purpose and equipment used in the
519	519	11 diagnosis, analysis, or treatment of hospital patients
520	520	12 purchased by a lessor who leases the equipment, under a lease
521	521	13 of one year or longer executed or in effect at the time the
522	522	14 lessor would otherwise be subject to the tax imposed by this
523	523	15 Act, to a hospital that has been issued an active tax exemption
524	524	16 identification number by the Department under Section 1g of
525	525	17 the Retailers' Occupation Tax Act. If the equipment is leased
526	526	18 in a manner that does not qualify for this exemption or is used
527	527	19 in any other nonexempt manner, the lessor shall be liable for
528	528	20 the tax imposed under this Act or the Service Use Tax Act, as
529	529	21 the case may be, based on the fair market value of the property
530	530	22 at the time the nonqualifying use occurs. No lessor shall
531	531	23 collect or attempt to collect an amount (however designated)
532	532	24 that purports to reimburse that lessor for the tax imposed by
533	533	25 this Act or the Service Use Tax Act, as the case may be, if the
534	534	26 tax has not been paid by the lessor. If a lessor improperly
535	535
536	536
537	537
538	538
539	539
540	540	HB5901 - 14 - LRB103 42819 HLH 76068 b
541	541
542	542
543	543	HB5901- 15 -LRB103 42819 HLH 76068 b HB5901 - 15 - LRB103 42819 HLH 76068 b
544	544	HB5901 - 15 - LRB103 42819 HLH 76068 b
545	545	1 collects any such amount from the lessee, the lessee shall
546	546	2 have a legal right to claim a refund of that amount from the
547	547	3 lessor. If, however, that amount is not refunded to the lessee
548	548	4 for any reason, the lessor is liable to pay that amount to the
549	549	5 Department. This paragraph is exempt from the provisions of
550	550	6 Section 3-90.
551	551	7 (32) Beginning on August 2, 2001 (the effective date of
552	552	8 Public Act 92-227), personal property purchased by a lessor
553	553	9 who leases the property, under a lease of one year or longer
554	554	10 executed or in effect at the time the lessor would otherwise be
555	555	11 subject to the tax imposed by this Act, to a governmental body
556	556	12 that has been issued an active sales tax exemption
557	557	13 identification number by the Department under Section 1g of
558	558	14 the Retailers' Occupation Tax Act. If the property is leased
559	559	15 in a manner that does not qualify for this exemption or used in
560	560	16 any other nonexempt manner, the lessor shall be liable for the
561	561	17 tax imposed under this Act or the Service Use Tax Act, as the
562	562	18 case may be, based on the fair market value of the property at
563	563	19 the time the nonqualifying use occurs. No lessor shall collect
564	564	20 or attempt to collect an amount (however designated) that
565	565	21 purports to reimburse that lessor for the tax imposed by this
566	566	22 Act or the Service Use Tax Act, as the case may be, if the tax
567	567	23 has not been paid by the lessor. If a lessor improperly
568	568	24 collects any such amount from the lessee, the lessee shall
569	569	25 have a legal right to claim a refund of that amount from the
570	570	26 lessor. If, however, that amount is not refunded to the lessee
571	571
572	572
573	573
574	574
575	575
576	576	HB5901 - 15 - LRB103 42819 HLH 76068 b
577	577
578	578
579	579	HB5901- 16 -LRB103 42819 HLH 76068 b HB5901 - 16 - LRB103 42819 HLH 76068 b
580	580	HB5901 - 16 - LRB103 42819 HLH 76068 b
581	581	1 for any reason, the lessor is liable to pay that amount to the
582	582	2 Department. This paragraph is exempt from the provisions of
583	583	3 Section 3-90.
584	584	4 (33) On and after July 1, 2003 and through June 30, 2004,
585	585	5 the use in this State of motor vehicles of the second division
586	586	6 with a gross vehicle weight in excess of 8,000 pounds and that
587	587	7 are subject to the commercial distribution fee imposed under
588	588	8 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
589	589	9 July 1, 2004 and through June 30, 2005, the use in this State
590	590	10 of motor vehicles of the second division: (i) with a gross
591	591	11 vehicle weight rating in excess of 8,000 pounds; (ii) that are
592	592	12 subject to the commercial distribution fee imposed under
593	593	13 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
594	594	14 are primarily used for commercial purposes. Through June 30,
595	595	15 2005, this exemption applies to repair and replacement parts
596	596	16 added after the initial purchase of such a motor vehicle if
597	597	17 that motor vehicle is used in a manner that would qualify for
598	598	18 the rolling stock exemption otherwise provided for in this
599	599	19 Act. For purposes of this paragraph, the term "used for
600	600	20 commercial purposes" means the transportation of persons or
601	601	21 property in furtherance of any commercial or industrial
602	602	22 enterprise, whether for-hire or not.
603	603	23 (34) Beginning January 1, 2008, tangible personal property
604	604	24 used in the construction or maintenance of a community water
605	605	25 supply, as defined under Section 3.145 of the Environmental
606	606	26 Protection Act, that is operated by a not-for-profit
607	607
608	608
609	609
610	610
611	611
612	612	HB5901 - 16 - LRB103 42819 HLH 76068 b
613	613
614	614
615	615	HB5901- 17 -LRB103 42819 HLH 76068 b HB5901 - 17 - LRB103 42819 HLH 76068 b
616	616	HB5901 - 17 - LRB103 42819 HLH 76068 b
617	617	1 corporation that holds a valid water supply permit issued
618	618	2 under Title IV of the Environmental Protection Act. This
619	619	3 paragraph is exempt from the provisions of Section 3-90.
620	620	4 (35) Beginning January 1, 2010 and continuing through
621	621	5 December 31, 2029, materials, parts, equipment, components,
622	622	6 and furnishings incorporated into or upon an aircraft as part
623	623	7 of the modification, refurbishment, completion, replacement,
624	624	8 repair, or maintenance of the aircraft. This exemption
625	625	9 includes consumable supplies used in the modification,
626	626	10 refurbishment, completion, replacement, repair, and
627	627	11 maintenance of aircraft. However, until January 1, 2024, this
628	628	12 exemption excludes any materials, parts, equipment,
629	629	13 components, and consumable supplies used in the modification,
630	630	14 replacement, repair, and maintenance of aircraft engines or
631	631	15 power plants, whether such engines or power plants are
632	632	16 installed or uninstalled upon any such aircraft. "Consumable
633	633	17 supplies" include, but are not limited to, adhesive, tape,
634	634	18 sandpaper, general purpose lubricants, cleaning solution,
635	635	19 latex gloves, and protective films.
636	636	20 Beginning January 1, 2010 and continuing through December
637	637	21 31, 2023, this exemption applies only to the use of qualifying
638	638	22 tangible personal property by persons who modify, refurbish,
639	639	23 complete, repair, replace, or maintain aircraft and who (i)
640	640	24 hold an Air Agency Certificate and are empowered to operate an
641	641	25 approved repair station by the Federal Aviation
642	642	26 Administration, (ii) have a Class IV Rating, and (iii) conduct
643	643
644	644
645	645
646	646
647	647
648	648	HB5901 - 17 - LRB103 42819 HLH 76068 b
649	649
650	650
651	651	HB5901- 18 -LRB103 42819 HLH 76068 b HB5901 - 18 - LRB103 42819 HLH 76068 b
652	652	HB5901 - 18 - LRB103 42819 HLH 76068 b
653	653	1 operations in accordance with Part 145 of the Federal Aviation
654	654	2 Regulations. From January 1, 2024 through December 31, 2029,
655	655	3 this exemption applies only to the use of qualifying tangible
656	656	4 personal property by: (A) persons who modify, refurbish,
657	657	5 complete, repair, replace, or maintain aircraft and who (i)
658	658	6 hold an Air Agency Certificate and are empowered to operate an
659	659	7 approved repair station by the Federal Aviation
660	660	8 Administration, (ii) have a Class IV Rating, and (iii) conduct
661	661	9 operations in accordance with Part 145 of the Federal Aviation
662	662	10 Regulations; and (B) persons who engage in the modification,
663	663	11 replacement, repair, and maintenance of aircraft engines or
664	664	12 power plants without regard to whether or not those persons
665	665	13 meet the qualifications of item (A).
666	666	14 The exemption does not include aircraft operated by a
667	667	15 commercial air carrier providing scheduled passenger air
668	668	16 service pursuant to authority issued under Part 121 or Part
669	669	17 129 of the Federal Aviation Regulations. The changes made to
670	670	18 this paragraph (35) by Public Act 98-534 are declarative of
671	671	19 existing law. It is the intent of the General Assembly that the
672	672	20 exemption under this paragraph (35) applies continuously from
673	673	21 January 1, 2010 through December 31, 2024; however, no claim
674	674	22 for credit or refund is allowed for taxes paid as a result of
675	675	23 the disallowance of this exemption on or after January 1, 2015
676	676	24 and prior to February 5, 2020 (the effective date of Public Act
677	677	25 101-629).
678	678	26 (36) Tangible personal property purchased by a
679	679
680	680
681	681
682	682
683	683
684	684	HB5901 - 18 - LRB103 42819 HLH 76068 b
685	685
686	686
687	687	HB5901- 19 -LRB103 42819 HLH 76068 b HB5901 - 19 - LRB103 42819 HLH 76068 b
688	688	HB5901 - 19 - LRB103 42819 HLH 76068 b
689	689	1 public-facilities corporation, as described in Section
690	690	2 11-65-10 of the Illinois Municipal Code, for purposes of
691	691	3 constructing or furnishing a municipal convention hall, but
692	692	4 only if the legal title to the municipal convention hall is
693	693	5 transferred to the municipality without any further
694	694	6 consideration by or on behalf of the municipality at the time
695	695	7 of the completion of the municipal convention hall or upon the
696	696	8 retirement or redemption of any bonds or other debt
697	697	9 instruments issued by the public-facilities corporation in
698	698	10 connection with the development of the municipal convention
699	699	11 hall. This exemption includes existing public-facilities
700	700	12 corporations as provided in Section 11-65-25 of the Illinois
701	701	13 Municipal Code. This paragraph is exempt from the provisions
702	702	14 of Section 3-90.
703	703	15 (37) Beginning January 1, 2017 and through December 31,
704	704	16 2026, menstrual pads, tampons, and menstrual cups.
705	705	17 (38) Merchandise that is subject to the Rental Purchase
706	706	18 Agreement Occupation and Use Tax. The purchaser must certify
707	707	19 that the item is purchased to be rented subject to a
708	708	20 rental-purchase rental purchase agreement, as defined in the
709	709	21 Rental-Purchase Rental Purchase Agreement Act, and provide
710	710	22 proof of registration under the Rental Purchase Agreement
711	711	23 Occupation and Use Tax Act. This paragraph is exempt from the
712	712	24 provisions of Section 3-90.
713	713	25 (39) Tangible personal property purchased by a purchaser
714	714	26 who is exempt from the tax imposed by this Act by operation of
715	715
716	716
717	717
718	718
719	719
720	720	HB5901 - 19 - LRB103 42819 HLH 76068 b
721	721
722	722
723	723	HB5901- 20 -LRB103 42819 HLH 76068 b HB5901 - 20 - LRB103 42819 HLH 76068 b
724	724	HB5901 - 20 - LRB103 42819 HLH 76068 b
725	725	1 federal law. This paragraph is exempt from the provisions of
726	726	2 Section 3-90.
727	727	3 (40) Qualified tangible personal property used in the
728	728	4 construction or operation of a data center that has been
729	729	5 granted a certificate of exemption by the Department of
730	730	6 Commerce and Economic Opportunity, whether that tangible
731	731	7 personal property is purchased by the owner, operator, or
732	732	8 tenant of the data center or by a contractor or subcontractor
733	733	9 of the owner, operator, or tenant. Data centers that would
734	734	10 have qualified for a certificate of exemption prior to January
735	735	11 1, 2020 had Public Act 101-31 been in effect may apply for and
736	736	12 obtain an exemption for subsequent purchases of computer
737	737	13 equipment or enabling software purchased or leased to upgrade,
738	738	14 supplement, or replace computer equipment or enabling software
739	739	15 purchased or leased in the original investment that would have
740	740	16 qualified.
741	741	17 The Department of Commerce and Economic Opportunity shall
742	742	18 grant a certificate of exemption under this item (40) to
743	743	19 qualified data centers as defined by Section 605-1025 of the
744	744	20 Department of Commerce and Economic Opportunity Law of the
745	745	21 Civil Administrative Code of Illinois.
746	746	22 For the purposes of this item (40):
747	747	23 "Data center" means a building or a series of
748	748	24 buildings rehabilitated or constructed to house working
749	749	25 servers in one physical location or multiple sites within
750	750	26 the State of Illinois.
751	751
752	752
753	753
754	754
755	755
756	756	HB5901 - 20 - LRB103 42819 HLH 76068 b
757	757
758	758
759	759	HB5901- 21 -LRB103 42819 HLH 76068 b HB5901 - 21 - LRB103 42819 HLH 76068 b
760	760	HB5901 - 21 - LRB103 42819 HLH 76068 b
761	761	1 "Qualified tangible personal property" means:
762	762	2 electrical systems and equipment; climate control and
763	763	3 chilling equipment and systems; mechanical systems and
764	764	4 equipment; monitoring and secure systems; emergency
765	765	5 generators; hardware; computers; servers; data storage
766	766	6 devices; network connectivity equipment; racks; cabinets;
767	767	7 telecommunications cabling infrastructure; raised floor
768	768	8 systems; peripheral components or systems; software;
769	769	9 mechanical, electrical, or plumbing systems; battery
770	770	10 systems; cooling systems and towers; temperature control
771	771	11 systems; other cabling; and other data center
772	772	12 infrastructure equipment and systems necessary to operate
773	773	13 qualified tangible personal property, including fixtures;
774	774	14 and component parts of any of the foregoing, including
775	775	15 installation, maintenance, repair, refurbishment, and
776	776	16 replacement of qualified tangible personal property to
777	777	17 generate, transform, transmit, distribute, or manage
778	778	18 electricity necessary to operate qualified tangible
779	779	19 personal property; and all other tangible personal
780	780	20 property that is essential to the operations of a computer
781	781	21 data center. The term "qualified tangible personal
782	782	22 property" also includes building materials physically
783	783	23 incorporated into in to the qualifying data center. To
784	784	24 document the exemption allowed under this Section, the
785	785	25 retailer must obtain from the purchaser a copy of the
786	786	26 certificate of eligibility issued by the Department of
787	787
788	788
789	789
790	790
791	791
792	792	HB5901 - 21 - LRB103 42819 HLH 76068 b
793	793
794	794
795	795	HB5901- 22 -LRB103 42819 HLH 76068 b HB5901 - 22 - LRB103 42819 HLH 76068 b
796	796	HB5901 - 22 - LRB103 42819 HLH 76068 b
797	797	1 Commerce and Economic Opportunity.
798	798	2 This item (40) is exempt from the provisions of Section
799	799	3 3-90.
800	800	4 (41) Beginning July 1, 2022, breast pumps, breast pump
801	801	5 collection and storage supplies, and breast pump kits. This
802	802	6 item (41) is exempt from the provisions of Section 3-90. As
803	803	7 used in this item (41):
804	804	8 "Breast pump" means an electrically controlled or
805	805	9 manually controlled pump device designed or marketed to be
806	806	10 used to express milk from a human breast during lactation,
807	807	11 including the pump device and any battery, AC adapter, or
808	808	12 other power supply unit that is used to power the pump
809	809	13 device and is packaged and sold with the pump device at the
810	810	14 time of sale.
811	811	15 "Breast pump collection and storage supplies" means
812	812	16 items of tangible personal property designed or marketed
813	813	17 to be used in conjunction with a breast pump to collect
814	814	18 milk expressed from a human breast and to store collected
815	815	19 milk until it is ready for consumption.
816	816	20 "Breast pump collection and storage supplies"
817	817	21 includes, but is not limited to: breast shields and breast
818	818	22 shield connectors; breast pump tubes and tubing adapters;
819	819	23 breast pump valves and membranes; backflow protectors and
820	820	24 backflow protector adaptors; bottles and bottle caps
821	821	25 specific to the operation of the breast pump; and breast
822	822	26 milk storage bags.
823	823
824	824
825	825
826	826
827	827
828	828	HB5901 - 22 - LRB103 42819 HLH 76068 b
829	829
830	830
831	831	HB5901- 23 -LRB103 42819 HLH 76068 b HB5901 - 23 - LRB103 42819 HLH 76068 b
832	832	HB5901 - 23 - LRB103 42819 HLH 76068 b
833	833	1 "Breast pump collection and storage supplies" does not
834	834	2 include: (1) bottles and bottle caps not specific to the
835	835	3 operation of the breast pump; (2) breast pump travel bags
836	836	4 and other similar carrying accessories, including ice
837	837	5 packs, labels, and other similar products; (3) breast pump
838	838	6 cleaning supplies; (4) nursing bras, bra pads, breast
839	839	7 shells, and other similar products; and (5) creams,
840	840	8 ointments, and other similar products that relieve
841	841	9 breastfeeding-related symptoms or conditions of the
842	842	10 breasts or nipples, unless sold as part of a breast pump
843	843	11 kit that is pre-packaged by the breast pump manufacturer
844	844	12 or distributor.
845	845	13 "Breast pump kit" means a kit that: (1) contains no
846	846	14 more than a breast pump, breast pump collection and
847	847	15 storage supplies, a rechargeable battery for operating the
848	848	16 breast pump, a breastmilk cooler, bottle stands, ice
849	849	17 packs, and a breast pump carrying case; and (2) is
850	850	18 pre-packaged as a breast pump kit by the breast pump
851	851	19 manufacturer or distributor.
852	852	20 (42) Tangible personal property sold by or on behalf of
853	853	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
854	854	22 Property Act. This item (42) is exempt from the provisions of
855	855	23 Section 3-90.
856	856	24 (43) Beginning on January 1, 2024, tangible personal
857	857	25 property purchased by an active duty member of the armed
858	858	26 forces of the United States who presents valid military
859	859
860	860
861	861
862	862
863	863
864	864	HB5901 - 23 - LRB103 42819 HLH 76068 b
865	865
866	866
867	867	HB5901- 24 -LRB103 42819 HLH 76068 b HB5901 - 24 - LRB103 42819 HLH 76068 b
868	868	HB5901 - 24 - LRB103 42819 HLH 76068 b
869	869	1 identification and purchases the property using a form of
870	870	2 payment where the federal government is the payor. The member
871	871	3 of the armed forces must complete, at the point of sale, a form
872	872	4 prescribed by the Department of Revenue documenting that the
873	873	5 transaction is eligible for the exemption under this
874	874	6 paragraph. Retailers must keep the form as documentation of
875	875	7 the exemption in their records for a period of not less than 6
876	876	8 years. "Armed forces of the United States" means the United
877	877	9 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
878	878	10 This paragraph is exempt from the provisions of Section 3-90.
879	879	11 (44) Materials furnished to a common interest community
880	880	12 association pursuant to a contract entered into with the
881	881	13 highway commissioner of a road district under subsection (k)
882	882	14 of Section 1-30 of the Common Interest Community Association
883	883	15 Act. This paragraph is exempt from the provisions of Section
884	884	16 3-90.
885	885	17 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
886	886	18 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
887	887	19 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
888	888	20 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
889	889	21 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
890	890	22 revised 12-12-23.)
891	891	23 Section 10. The Service Use Tax Act is amended by changing
892	892	24 Section 3-5 as follows:
893	893
894	894
895	895
896	896
897	897
898	898	HB5901 - 24 - LRB103 42819 HLH 76068 b
899	899
900	900
901	901	HB5901- 25 -LRB103 42819 HLH 76068 b HB5901 - 25 - LRB103 42819 HLH 76068 b
902	902	HB5901 - 25 - LRB103 42819 HLH 76068 b
903	903	1 (35 ILCS 110/3-5)
904	904	2 Sec. 3-5. Exemptions. Use of the following tangible
905	905	3 personal property is exempt from the tax imposed by this Act:
906	906	4 (1) Personal property purchased from a corporation,
907	907	5 society, association, foundation, institution, or
908	908	6 organization, other than a limited liability company, that is
909	909	7 organized and operated as a not-for-profit service enterprise
910	910	8 for the benefit of persons 65 years of age or older if the
911	911	9 personal property was not purchased by the enterprise for the
912	912	10 purpose of resale by the enterprise.
913	913	11 (2) Personal property purchased by a non-profit Illinois
914	914	12 county fair association for use in conducting, operating, or
915	915	13 promoting the county fair.
916	916	14 (3) Personal property purchased by a not-for-profit arts
917	917	15 or cultural organization that establishes, by proof required
918	918	16 by the Department by rule, that it has received an exemption
919	919	17 under Section 501(c)(3) of the Internal Revenue Code and that
920	920	18 is organized and operated primarily for the presentation or
921	921	19 support of arts or cultural programming, activities, or
922	922	20 services. These organizations include, but are not limited to,
923	923	21 music and dramatic arts organizations such as symphony
924	924	22 orchestras and theatrical groups, arts and cultural service
925	925	23 organizations, local arts councils, visual arts organizations,
926	926	24 and media arts organizations. On and after July 1, 2001 (the
927	927	25 effective date of Public Act 92-35), however, an entity
928	928	26 otherwise eligible for this exemption shall not make tax-free
929	929
930	930
931	931
932	932
933	933
934	934	HB5901 - 25 - LRB103 42819 HLH 76068 b
935	935
936	936
937	937	HB5901- 26 -LRB103 42819 HLH 76068 b HB5901 - 26 - LRB103 42819 HLH 76068 b
938	938	HB5901 - 26 - LRB103 42819 HLH 76068 b
939	939	1 purchases unless it has an active identification number issued
940	940	2 by the Department.
941	941	3 (4) Legal tender, currency, medallions, or gold or silver
942	942	4 coinage issued by the State of Illinois, the government of the
943	943	5 United States of America, or the government of any foreign
944	944	6 country, and bullion.
945	945	7 (5) Until July 1, 2003 and beginning again on September 1,
946	946	8 2004 through August 30, 2014, graphic arts machinery and
947	947	9 equipment, including repair and replacement parts, both new
948	948	10 and used, and including that manufactured on special order or
949	949	11 purchased for lease, certified by the purchaser to be used
950	950	12 primarily for graphic arts production. Equipment includes
951	951	13 chemicals or chemicals acting as catalysts but only if the
952	952	14 chemicals or chemicals acting as catalysts effect a direct and
953	953	15 immediate change upon a graphic arts product. Beginning on
954	954	16 July 1, 2017, graphic arts machinery and equipment is included
955	955	17 in the manufacturing and assembling machinery and equipment
956	956	18 exemption under Section 2 of this Act.
957	957	19 (6) Personal property purchased from a teacher-sponsored
958	958	20 student organization affiliated with an elementary or
959	959	21 secondary school located in Illinois.
960	960	22 (7) Farm machinery and equipment, both new and used,
961	961	23 including that manufactured on special order, certified by the
962	962	24 purchaser to be used primarily for production agriculture or
963	963	25 State or federal agricultural programs, including individual
964	964	26 replacement parts for the machinery and equipment, including
965	965
966	966
967	967
968	968
969	969
970	970	HB5901 - 26 - LRB103 42819 HLH 76068 b
971	971
972	972
973	973	HB5901- 27 -LRB103 42819 HLH 76068 b HB5901 - 27 - LRB103 42819 HLH 76068 b
974	974	HB5901 - 27 - LRB103 42819 HLH 76068 b
975	975	1 machinery and equipment purchased for lease, and including
976	976	2 implements of husbandry defined in Section 1-130 of the
977	977	3 Illinois Vehicle Code, farm machinery and agricultural
978	978	4 chemical and fertilizer spreaders, and nurse wagons required
979	979	5 to be registered under Section 3-809 of the Illinois Vehicle
980	980	6 Code, but excluding other motor vehicles required to be
981	981	7 registered under the Illinois Vehicle Code. Horticultural
982	982	8 polyhouses or hoop houses used for propagating, growing, or
983	983	9 overwintering plants shall be considered farm machinery and
984	984	10 equipment under this item (7). Agricultural chemical tender
985	985	11 tanks and dry boxes shall include units sold separately from a
986	986	12 motor vehicle required to be licensed and units sold mounted
987	987	13 on a motor vehicle required to be licensed if the selling price
988	988	14 of the tender is separately stated.
989	989	15 Farm machinery and equipment shall include precision
990	990	16 farming equipment that is installed or purchased to be
991	991	17 installed on farm machinery and equipment, including, but not
992	992	18 limited to, tractors, harvesters, sprayers, planters, seeders,
993	993	19 or spreaders. Precision farming equipment includes, but is not
994	994	20 limited to, soil testing sensors, computers, monitors,
995	995	21 software, global positioning and mapping systems, and other
996	996	22 such equipment.
997	997	23 Farm machinery and equipment also includes computers,
998	998	24 sensors, software, and related equipment used primarily in the
999	999	25 computer-assisted operation of production agriculture
1000	1000	26 facilities, equipment, and activities such as, but not limited
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	HB5901 - 27 - LRB103 42819 HLH 76068 b
1007	1007
1008	1008
1009	1009	HB5901- 28 -LRB103 42819 HLH 76068 b HB5901 - 28 - LRB103 42819 HLH 76068 b
1010	1010	HB5901 - 28 - LRB103 42819 HLH 76068 b
1011	1011	1 to, the collection, monitoring, and correlation of animal and
1012	1012	2 crop data for the purpose of formulating animal diets and
1013	1013	3 agricultural chemicals.
1014	1014	4 Beginning on January 1, 2024, farm machinery and equipment
1015	1015	5 also includes electrical power generation equipment used
1016	1016	6 primarily for production agriculture.
1017	1017	7 This item (7) is exempt from the provisions of Section
1018	1018	8 3-75.
1019	1019	9 (8) Until June 30, 2013, fuel and petroleum products sold
1020	1020	10 to or used by an air common carrier, certified by the carrier
1021	1021	11 to be used for consumption, shipment, or storage in the
1022	1022	12 conduct of its business as an air common carrier, for a flight
1023	1023	13 destined for or returning from a location or locations outside
1024	1024	14 the United States without regard to previous or subsequent
1025	1025	15 domestic stopovers.
1026	1026	16 Beginning July 1, 2013, fuel and petroleum products sold
1027	1027	17 to or used by an air carrier, certified by the carrier to be
1028	1028	18 used for consumption, shipment, or storage in the conduct of
1029	1029	19 its business as an air common carrier, for a flight that (i) is
1030	1030	20 engaged in foreign trade or is engaged in trade between the
1031	1031	21 United States and any of its possessions and (ii) transports
1032	1032	22 at least one individual or package for hire from the city of
1033	1033	23 origination to the city of final destination on the same
1034	1034	24 aircraft, without regard to a change in the flight number of
1035	1035	25 that aircraft.
1036	1036	26 (9) Proceeds of mandatory service charges separately
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	HB5901 - 28 - LRB103 42819 HLH 76068 b
1043	1043
1044	1044
1045	1045	HB5901- 29 -LRB103 42819 HLH 76068 b HB5901 - 29 - LRB103 42819 HLH 76068 b
1046	1046	HB5901 - 29 - LRB103 42819 HLH 76068 b
1047	1047	1 stated on customers' bills for the purchase and consumption of
1048	1048	2 food and beverages acquired as an incident to the purchase of a
1049	1049	3 service from a serviceman, to the extent that the proceeds of
1050	1050	4 the service charge are in fact turned over as tips or as a
1051	1051	5 substitute for tips to the employees who participate directly
1052	1052	6 in preparing, serving, hosting or cleaning up the food or
1053	1053	7 beverage function with respect to which the service charge is
1054	1054	8 imposed.
1055	1055	9 (10) Until July 1, 2003, oil field exploration, drilling,
1056	1056	10 and production equipment, including (i) rigs and parts of
1057	1057	11 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1058	1058	12 pipe and tubular goods, including casing and drill strings,
1059	1059	13 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1060	1060	14 lines, (v) any individual replacement part for oil field
1061	1061	15 exploration, drilling, and production equipment, and (vi)
1062	1062	16 machinery and equipment purchased for lease; but excluding
1063	1063	17 motor vehicles required to be registered under the Illinois
1064	1064	18 Vehicle Code.
1065	1065	19 (11) Proceeds from the sale of photoprocessing machinery
1066	1066	20 and equipment, including repair and replacement parts, both
1067	1067	21 new and used, including that manufactured on special order,
1068	1068	22 certified by the purchaser to be used primarily for
1069	1069	23 photoprocessing, and including photoprocessing machinery and
1070	1070	24 equipment purchased for lease.
1071	1071	25 (12) Until July 1, 2028, coal and aggregate exploration,
1072	1072	26 mining, off-highway hauling, processing, maintenance, and
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078	HB5901 - 29 - LRB103 42819 HLH 76068 b
1079	1079
1080	1080
1081	1081	HB5901- 30 -LRB103 42819 HLH 76068 b HB5901 - 30 - LRB103 42819 HLH 76068 b
1082	1082	HB5901 - 30 - LRB103 42819 HLH 76068 b
1083	1083	1 reclamation equipment, including replacement parts and
1084	1084	2 equipment, and including equipment purchased for lease, but
1085	1085	3 excluding motor vehicles required to be registered under the
1086	1086	4 Illinois Vehicle Code. The changes made to this Section by
1087	1087	5 Public Act 97-767 apply on and after July 1, 2003, but no claim
1088	1088	6 for credit or refund is allowed on or after August 16, 2013
1089	1089	7 (the effective date of Public Act 98-456) for such taxes paid
1090	1090	8 during the period beginning July 1, 2003 and ending on August
1091	1091	9 16, 2013 (the effective date of Public Act 98-456).
1092	1092	10 (13) Semen used for artificial insemination of livestock
1093	1093	11 for direct agricultural production.
1094	1094	12 (14) Horses, or interests in horses, registered with and
1095	1095	13 meeting the requirements of any of the Arabian Horse Club
1096	1096	14 Registry of America, Appaloosa Horse Club, American Quarter
1097	1097	15 Horse Association, United States Trotting Association, or
1098	1098	16 Jockey Club, as appropriate, used for purposes of breeding or
1099	1099	17 racing for prizes. This item (14) is exempt from the
1100	1100	18 provisions of Section 3-75, and the exemption provided for
1101	1101	19 under this item (14) applies for all periods beginning May 30,
1102	1102	20 1995, but no claim for credit or refund is allowed on or after
1103	1103	21 January 1, 2008 (the effective date of Public Act 95-88) for
1104	1104	22 such taxes paid during the period beginning May 30, 2000 and
1105	1105	23 ending on January 1, 2008 (the effective date of Public Act
1106	1106	24 95-88).
1107	1107	25 (15) Computers and communications equipment utilized for
1108	1108	26 any hospital purpose and equipment used in the diagnosis,
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114	HB5901 - 30 - LRB103 42819 HLH 76068 b
1115	1115
1116	1116
1117	1117	HB5901- 31 -LRB103 42819 HLH 76068 b HB5901 - 31 - LRB103 42819 HLH 76068 b
1118	1118	HB5901 - 31 - LRB103 42819 HLH 76068 b
1119	1119	1 analysis, or treatment of hospital patients purchased by a
1120	1120	2 lessor who leases the equipment, under a lease of one year or
1121	1121	3 longer executed or in effect at the time the lessor would
1122	1122	4 otherwise be subject to the tax imposed by this Act, to a
1123	1123	5 hospital that has been issued an active tax exemption
1124	1124	6 identification number by the Department under Section 1g of
1125	1125	7 the Retailers' Occupation Tax Act. If the equipment is leased
1126	1126	8 in a manner that does not qualify for this exemption or is used
1127	1127	9 in any other non-exempt manner, the lessor shall be liable for
1128	1128	10 the tax imposed under this Act or the Use Tax Act, as the case
1129	1129	11 may be, based on the fair market value of the property at the
1130	1130	12 time the non-qualifying use occurs. No lessor shall collect or
1131	1131	13 attempt to collect an amount (however designated) that
1132	1132	14 purports to reimburse that lessor for the tax imposed by this
1133	1133	15 Act or the Use Tax Act, as the case may be, if the tax has not
1134	1134	16 been paid by the lessor. If a lessor improperly collects any
1135	1135	17 such amount from the lessee, the lessee shall have a legal
1136	1136	18 right to claim a refund of that amount from the lessor. If,
1137	1137	19 however, that amount is not refunded to the lessee for any
1138	1138	20 reason, the lessor is liable to pay that amount to the
1139	1139	21 Department.
1140	1140	22 (16) Personal property purchased by a lessor who leases
1141	1141	23 the property, under a lease of one year or longer executed or
1142	1142	24 in effect at the time the lessor would otherwise be subject to
1143	1143	25 the tax imposed by this Act, to a governmental body that has
1144	1144	26 been issued an active tax exemption identification number by
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150	HB5901 - 31 - LRB103 42819 HLH 76068 b
1151	1151
1152	1152
1153	1153	HB5901- 32 -LRB103 42819 HLH 76068 b HB5901 - 32 - LRB103 42819 HLH 76068 b
1154	1154	HB5901 - 32 - LRB103 42819 HLH 76068 b
1155	1155	1 the Department under Section 1g of the Retailers' Occupation
1156	1156	2 Tax Act. If the property is leased in a manner that does not
1157	1157	3 qualify for this exemption or is used in any other non-exempt
1158	1158	4 manner, the lessor shall be liable for the tax imposed under
1159	1159	5 this Act or the Use Tax Act, as the case may be, based on the
1160	1160	6 fair market value of the property at the time the
1161	1161	7 non-qualifying use occurs. No lessor shall collect or attempt
1162	1162	8 to collect an amount (however designated) that purports to
1163	1163	9 reimburse that lessor for the tax imposed by this Act or the
1164	1164	10 Use Tax Act, as the case may be, if the tax has not been paid
1165	1165	11 by the lessor. If a lessor improperly collects any such amount
1166	1166	12 from the lessee, the lessee shall have a legal right to claim a
1167	1167	13 refund of that amount from the lessor. If, however, that
1168	1168	14 amount is not refunded to the lessee for any reason, the lessor
1169	1169	15 is liable to pay that amount to the Department.
1170	1170	16 (17) Beginning with taxable years ending on or after
1171	1171	17 December 31, 1995 and ending with taxable years ending on or
1172	1172	18 before December 31, 2004, personal property that is donated
1173	1173	19 for disaster relief to be used in a State or federally declared
1174	1174	20 disaster area in Illinois or bordering Illinois by a
1175	1175	21 manufacturer or retailer that is registered in this State to a
1176	1176	22 corporation, society, association, foundation, or institution
1177	1177	23 that has been issued a sales tax exemption identification
1178	1178	24 number by the Department that assists victims of the disaster
1179	1179	25 who reside within the declared disaster area.
1180	1180	26 (18) Beginning with taxable years ending on or after
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186	HB5901 - 32 - LRB103 42819 HLH 76068 b
1187	1187
1188	1188
1189	1189	HB5901- 33 -LRB103 42819 HLH 76068 b HB5901 - 33 - LRB103 42819 HLH 76068 b
1190	1190	HB5901 - 33 - LRB103 42819 HLH 76068 b
1191	1191	1 December 31, 1995 and ending with taxable years ending on or
1192	1192	2 before December 31, 2004, personal property that is used in
1193	1193	3 the performance of infrastructure repairs in this State,
1194	1194	4 including, but not limited to, municipal roads and streets,
1195	1195	5 access roads, bridges, sidewalks, waste disposal systems,
1196	1196	6 water and sewer line extensions, water distribution and
1197	1197	7 purification facilities, storm water drainage and retention
1198	1198	8 facilities, and sewage treatment facilities, resulting from a
1199	1199	9 State or federally declared disaster in Illinois or bordering
1200	1200	10 Illinois when such repairs are initiated on facilities located
1201	1201	11 in the declared disaster area within 6 months after the
1202	1202	12 disaster.
1203	1203	13 (19) Beginning July 1, 1999, game or game birds purchased
1204	1204	14 at a "game breeding and hunting preserve area" as that term is
1205	1205	15 used in the Wildlife Code. This paragraph is exempt from the
1206	1206	16 provisions of Section 3-75.
1207	1207	17 (20) A motor vehicle, as that term is defined in Section
1208	1208	18 1-146 of the Illinois Vehicle Code, that is donated to a
1209	1209	19 corporation, limited liability company, society, association,
1210	1210	20 foundation, or institution that is determined by the
1211	1211	21 Department to be organized and operated exclusively for
1212	1212	22 educational purposes. For purposes of this exemption, "a
1213	1213	23 corporation, limited liability company, society, association,
1214	1214	24 foundation, or institution organized and operated exclusively
1215	1215	25 for educational purposes" means all tax-supported public
1216	1216	26 schools, private schools that offer systematic instruction in
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222	HB5901 - 33 - LRB103 42819 HLH 76068 b
1223	1223
1224	1224
1225	1225	HB5901- 34 -LRB103 42819 HLH 76068 b HB5901 - 34 - LRB103 42819 HLH 76068 b
1226	1226	HB5901 - 34 - LRB103 42819 HLH 76068 b
1227	1227	1 useful branches of learning by methods common to public
1228	1228	2 schools and that compare favorably in their scope and
1229	1229	3 intensity with the course of study presented in tax-supported
1230	1230	4 schools, and vocational or technical schools or institutes
1231	1231	5 organized and operated exclusively to provide a course of
1232	1232	6 study of not less than 6 weeks duration and designed to prepare
1233	1233	7 individuals to follow a trade or to pursue a manual,
1234	1234	8 technical, mechanical, industrial, business, or commercial
1235	1235	9 occupation.
1236	1236	10 (21) Beginning January 1, 2000, personal property,
1237	1237	11 including food, purchased through fundraising events for the
1238	1238	12 benefit of a public or private elementary or secondary school,
1239	1239	13 a group of those schools, or one or more school districts if
1240	1240	14 the events are sponsored by an entity recognized by the school
1241	1241	15 district that consists primarily of volunteers and includes
1242	1242	16 parents and teachers of the school children. This paragraph
1243	1243	17 does not apply to fundraising events (i) for the benefit of
1244	1244	18 private home instruction or (ii) for which the fundraising
1245	1245	19 entity purchases the personal property sold at the events from
1246	1246	20 another individual or entity that sold the property for the
1247	1247	21 purpose of resale by the fundraising entity and that profits
1248	1248	22 from the sale to the fundraising entity. This paragraph is
1249	1249	23 exempt from the provisions of Section 3-75.
1250	1250	24 (22) Beginning January 1, 2000 and through December 31,
1251	1251	25 2001, new or used automatic vending machines that prepare and
1252	1252	26 serve hot food and beverages, including coffee, soup, and
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258	HB5901 - 34 - LRB103 42819 HLH 76068 b
1259	1259
1260	1260
1261	1261	HB5901- 35 -LRB103 42819 HLH 76068 b HB5901 - 35 - LRB103 42819 HLH 76068 b
1262	1262	HB5901 - 35 - LRB103 42819 HLH 76068 b
1263	1263	1 other items, and replacement parts for these machines.
1264	1264	2 Beginning January 1, 2002 and through June 30, 2003, machines
1265	1265	3 and parts for machines used in commercial, coin-operated
1266	1266	4 amusement and vending business if a use or occupation tax is
1267	1267	5 paid on the gross receipts derived from the use of the
1268	1268	6 commercial, coin-operated amusement and vending machines. This
1269	1269	7 paragraph is exempt from the provisions of Section 3-75.
1270	1270	8 (23) Beginning August 23, 2001 and through June 30, 2016,
1271	1271	9 food for human consumption that is to be consumed off the
1272	1272	10 premises where it is sold (other than alcoholic beverages,
1273	1273	11 soft drinks, and food that has been prepared for immediate
1274	1274	12 consumption) and prescription and nonprescription medicines,
1275	1275	13 drugs, medical appliances, and insulin, urine testing
1276	1276	14 materials, syringes, and needles used by diabetics, for human
1277	1277	15 use, when purchased for use by a person receiving medical
1278	1278	16 assistance under Article V of the Illinois Public Aid Code who
1279	1279	17 resides in a licensed long-term care facility, as defined in
1280	1280	18 the Nursing Home Care Act, or in a licensed facility as defined
1281	1281	19 in the ID/DD Community Care Act, the MC/DD Act, or the
1282	1282	20 Specialized Mental Health Rehabilitation Act of 2013.
1283	1283	21 (24) Beginning on August 2, 2001 (the effective date of
1284	1284	22 Public Act 92-227), computers and communications equipment
1285	1285	23 utilized for any hospital purpose and equipment used in the
1286	1286	24 diagnosis, analysis, or treatment of hospital patients
1287	1287	25 purchased by a lessor who leases the equipment, under a lease
1288	1288	26 of one year or longer executed or in effect at the time the
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294	HB5901 - 35 - LRB103 42819 HLH 76068 b
1295	1295
1296	1296
1297	1297	HB5901- 36 -LRB103 42819 HLH 76068 b HB5901 - 36 - LRB103 42819 HLH 76068 b
1298	1298	HB5901 - 36 - LRB103 42819 HLH 76068 b
1299	1299	1 lessor would otherwise be subject to the tax imposed by this
1300	1300	2 Act, to a hospital that has been issued an active tax exemption
1301	1301	3 identification number by the Department under Section 1g of
1302	1302	4 the Retailers' Occupation Tax Act. If the equipment is leased
1303	1303	5 in a manner that does not qualify for this exemption or is used
1304	1304	6 in any other nonexempt manner, the lessor shall be liable for
1305	1305	7 the tax imposed under this Act or the Use Tax Act, as the case
1306	1306	8 may be, based on the fair market value of the property at the
1307	1307	9 time the nonqualifying use occurs. No lessor shall collect or
1308	1308	10 attempt to collect an amount (however designated) that
1309	1309	11 purports to reimburse that lessor for the tax imposed by this
1310	1310	12 Act or the Use Tax Act, as the case may be, if the tax has not
1311	1311	13 been paid by the lessor. If a lessor improperly collects any
1312	1312	14 such amount from the lessee, the lessee shall have a legal
1313	1313	15 right to claim a refund of that amount from the lessor. If,
1314	1314	16 however, that amount is not refunded to the lessee for any
1315	1315	17 reason, the lessor is liable to pay that amount to the
1316	1316	18 Department. This paragraph is exempt from the provisions of
1317	1317	19 Section 3-75.
1318	1318	20 (25) Beginning on August 2, 2001 (the effective date of
1319	1319	21 Public Act 92-227), personal property purchased by a lessor
1320	1320	22 who leases the property, under a lease of one year or longer
1321	1321	23 executed or in effect at the time the lessor would otherwise be
1322	1322	24 subject to the tax imposed by this Act, to a governmental body
1323	1323	25 that has been issued an active tax exemption identification
1324	1324	26 number by the Department under Section 1g of the Retailers'
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330	HB5901 - 36 - LRB103 42819 HLH 76068 b
1331	1331
1332	1332
1333	1333	HB5901- 37 -LRB103 42819 HLH 76068 b HB5901 - 37 - LRB103 42819 HLH 76068 b
1334	1334	HB5901 - 37 - LRB103 42819 HLH 76068 b
1335	1335	1 Occupation Tax Act. If the property is leased in a manner that
1336	1336	2 does not qualify for this exemption or is used in any other
1337	1337	3 nonexempt manner, the lessor shall be liable for the tax
1338	1338	4 imposed under this Act or the Use Tax Act, as the case may be,
1339	1339	5 based on the fair market value of the property at the time the
1340	1340	6 nonqualifying use occurs. No lessor shall collect or attempt
1341	1341	7 to collect an amount (however designated) that purports to
1342	1342	8 reimburse that lessor for the tax imposed by this Act or the
1343	1343	9 Use Tax Act, as the case may be, if the tax has not been paid
1344	1344	10 by the lessor. If a lessor improperly collects any such amount
1345	1345	11 from the lessee, the lessee shall have a legal right to claim a
1346	1346	12 refund of that amount from the lessor. If, however, that
1347	1347	13 amount is not refunded to the lessee for any reason, the lessor
1348	1348	14 is liable to pay that amount to the Department. This paragraph
1349	1349	15 is exempt from the provisions of Section 3-75.
1350	1350	16 (26) Beginning January 1, 2008, tangible personal property
1351	1351	17 used in the construction or maintenance of a community water
1352	1352	18 supply, as defined under Section 3.145 of the Environmental
1353	1353	19 Protection Act, that is operated by a not-for-profit
1354	1354	20 corporation that holds a valid water supply permit issued
1355	1355	21 under Title IV of the Environmental Protection Act. This
1356	1356	22 paragraph is exempt from the provisions of Section 3-75.
1357	1357	23 (27) Beginning January 1, 2010 and continuing through
1358	1358	24 December 31, 2029, materials, parts, equipment, components,
1359	1359	25 and furnishings incorporated into or upon an aircraft as part
1360	1360	26 of the modification, refurbishment, completion, replacement,
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366	HB5901 - 37 - LRB103 42819 HLH 76068 b
1367	1367
1368	1368
1369	1369	HB5901- 38 -LRB103 42819 HLH 76068 b HB5901 - 38 - LRB103 42819 HLH 76068 b
1370	1370	HB5901 - 38 - LRB103 42819 HLH 76068 b
1371	1371	1 repair, or maintenance of the aircraft. This exemption
1372	1372	2 includes consumable supplies used in the modification,
1373	1373	3 refurbishment, completion, replacement, repair, and
1374	1374	4 maintenance of aircraft. However, until January 1, 2024, this
1375	1375	5 exemption excludes any materials, parts, equipment,
1376	1376	6 components, and consumable supplies used in the modification,
1377	1377	7 replacement, repair, and maintenance of aircraft engines or
1378	1378	8 power plants, whether such engines or power plants are
1379	1379	9 installed or uninstalled upon any such aircraft. "Consumable
1380	1380	10 supplies" include, but are not limited to, adhesive, tape,
1381	1381	11 sandpaper, general purpose lubricants, cleaning solution,
1382	1382	12 latex gloves, and protective films.
1383	1383	13 Beginning January 1, 2010 and continuing through December
1384	1384	14 31, 2023, this exemption applies only to the use of qualifying
1385	1385	15 tangible personal property transferred incident to the
1386	1386	16 modification, refurbishment, completion, replacement, repair,
1387	1387	17 or maintenance of aircraft by persons who (i) hold an Air
1388	1388	18 Agency Certificate and are empowered to operate an approved
1389	1389	19 repair station by the Federal Aviation Administration, (ii)
1390	1390	20 have a Class IV Rating, and (iii) conduct operations in
1391	1391	21 accordance with Part 145 of the Federal Aviation Regulations.
1392	1392	22 From January 1, 2024 through December 31, 2029, this exemption
1393	1393	23 applies only to the use of qualifying tangible personal
1394	1394	24 property by: (A) persons who modify, refurbish, complete,
1395	1395	25 repair, replace, or maintain aircraft and who (i) hold an Air
1396	1396	26 Agency Certificate and are empowered to operate an approved
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402	HB5901 - 38 - LRB103 42819 HLH 76068 b
1403	1403
1404	1404
1405	1405	HB5901- 39 -LRB103 42819 HLH 76068 b HB5901 - 39 - LRB103 42819 HLH 76068 b
1406	1406	HB5901 - 39 - LRB103 42819 HLH 76068 b
1407	1407	1 repair station by the Federal Aviation Administration, (ii)
1408	1408	2 have a Class IV Rating, and (iii) conduct operations in
1409	1409	3 accordance with Part 145 of the Federal Aviation Regulations;
1410	1410	4 and (B) persons who engage in the modification, replacement,
1411	1411	5 repair, and maintenance of aircraft engines or power plants
1412	1412	6 without regard to whether or not those persons meet the
1413	1413	7 qualifications of item (A).
1414	1414	8 The exemption does not include aircraft operated by a
1415	1415	9 commercial air carrier providing scheduled passenger air
1416	1416	10 service pursuant to authority issued under Part 121 or Part
1417	1417	11 129 of the Federal Aviation Regulations. The changes made to
1418	1418	12 this paragraph (27) by Public Act 98-534 are declarative of
1419	1419	13 existing law. It is the intent of the General Assembly that the
1420	1420	14 exemption under this paragraph (27) applies continuously from
1421	1421	15 January 1, 2010 through December 31, 2024; however, no claim
1422	1422	16 for credit or refund is allowed for taxes paid as a result of
1423	1423	17 the disallowance of this exemption on or after January 1, 2015
1424	1424	18 and prior to February 5, 2020 (the effective date of Public Act
1425	1425	19 101-629).
1426	1426	20 (28) Tangible personal property purchased by a
1427	1427	21 public-facilities corporation, as described in Section
1428	1428	22 11-65-10 of the Illinois Municipal Code, for purposes of
1429	1429	23 constructing or furnishing a municipal convention hall, but
1430	1430	24 only if the legal title to the municipal convention hall is
1431	1431	25 transferred to the municipality without any further
1432	1432	26 consideration by or on behalf of the municipality at the time
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438	HB5901 - 39 - LRB103 42819 HLH 76068 b
1439	1439
1440	1440
1441	1441	HB5901- 40 -LRB103 42819 HLH 76068 b HB5901 - 40 - LRB103 42819 HLH 76068 b
1442	1442	HB5901 - 40 - LRB103 42819 HLH 76068 b
1443	1443	1 of the completion of the municipal convention hall or upon the
1444	1444	2 retirement or redemption of any bonds or other debt
1445	1445	3 instruments issued by the public-facilities corporation in
1446	1446	4 connection with the development of the municipal convention
1447	1447	5 hall. This exemption includes existing public-facilities
1448	1448	6 corporations as provided in Section 11-65-25 of the Illinois
1449	1449	7 Municipal Code. This paragraph is exempt from the provisions
1450	1450	8 of Section 3-75.
1451	1451	9 (29) Beginning January 1, 2017 and through December 31,
1452	1452	10 2026, menstrual pads, tampons, and menstrual cups.
1453	1453	11 (30) Tangible personal property transferred to a purchaser
1454	1454	12 who is exempt from the tax imposed by this Act by operation of
1455	1455	13 federal law. This paragraph is exempt from the provisions of
1456	1456	14 Section 3-75.
1457	1457	15 (31) Qualified tangible personal property used in the
1458	1458	16 construction or operation of a data center that has been
1459	1459	17 granted a certificate of exemption by the Department of
1460	1460	18 Commerce and Economic Opportunity, whether that tangible
1461	1461	19 personal property is purchased by the owner, operator, or
1462	1462	20 tenant of the data center or by a contractor or subcontractor
1463	1463	21 of the owner, operator, or tenant. Data centers that would
1464	1464	22 have qualified for a certificate of exemption prior to January
1465	1465	23 1, 2020 had Public Act 101-31 been in effect, may apply for and
1466	1466	24 obtain an exemption for subsequent purchases of computer
1467	1467	25 equipment or enabling software purchased or leased to upgrade,
1468	1468	26 supplement, or replace computer equipment or enabling software
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473
1474	1474	HB5901 - 40 - LRB103 42819 HLH 76068 b
1475	1475
1476	1476
1477	1477	HB5901- 41 -LRB103 42819 HLH 76068 b HB5901 - 41 - LRB103 42819 HLH 76068 b
1478	1478	HB5901 - 41 - LRB103 42819 HLH 76068 b
1479	1479	1 purchased or leased in the original investment that would have
1480	1480	2 qualified.
1481	1481	3 The Department of Commerce and Economic Opportunity shall
1482	1482	4 grant a certificate of exemption under this item (31) to
1483	1483	5 qualified data centers as defined by Section 605-1025 of the
1484	1484	6 Department of Commerce and Economic Opportunity Law of the
1485	1485	7 Civil Administrative Code of Illinois.
1486	1486	8 For the purposes of this item (31):
1487	1487	9 "Data center" means a building or a series of
1488	1488	10 buildings rehabilitated or constructed to house working
1489	1489	11 servers in one physical location or multiple sites within
1490	1490	12 the State of Illinois.
1491	1491	13 "Qualified tangible personal property" means:
1492	1492	14 electrical systems and equipment; climate control and
1493	1493	15 chilling equipment and systems; mechanical systems and
1494	1494	16 equipment; monitoring and secure systems; emergency
1495	1495	17 generators; hardware; computers; servers; data storage
1496	1496	18 devices; network connectivity equipment; racks; cabinets;
1497	1497	19 telecommunications cabling infrastructure; raised floor
1498	1498	20 systems; peripheral components or systems; software;
1499	1499	21 mechanical, electrical, or plumbing systems; battery
1500	1500	22 systems; cooling systems and towers; temperature control
1501	1501	23 systems; other cabling; and other data center
1502	1502	24 infrastructure equipment and systems necessary to operate
1503	1503	25 qualified tangible personal property, including fixtures;
1504	1504	26 and component parts of any of the foregoing, including
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510	HB5901 - 41 - LRB103 42819 HLH 76068 b
1511	1511
1512	1512
1513	1513	HB5901- 42 -LRB103 42819 HLH 76068 b HB5901 - 42 - LRB103 42819 HLH 76068 b
1514	1514	HB5901 - 42 - LRB103 42819 HLH 76068 b
1515	1515	1 installation, maintenance, repair, refurbishment, and
1516	1516	2 replacement of qualified tangible personal property to
1517	1517	3 generate, transform, transmit, distribute, or manage
1518	1518	4 electricity necessary to operate qualified tangible
1519	1519	5 personal property; and all other tangible personal
1520	1520	6 property that is essential to the operations of a computer
1521	1521	7 data center. The term "qualified tangible personal
1522	1522	8 property" also includes building materials physically
1523	1523	9 incorporated into in to the qualifying data center. To
1524	1524	10 document the exemption allowed under this Section, the
1525	1525	11 retailer must obtain from the purchaser a copy of the
1526	1526	12 certificate of eligibility issued by the Department of
1527	1527	13 Commerce and Economic Opportunity.
1528	1528	14 This item (31) is exempt from the provisions of Section
1529	1529	15 3-75.
1530	1530	16 (32) Beginning July 1, 2022, breast pumps, breast pump
1531	1531	17 collection and storage supplies, and breast pump kits. This
1532	1532	18 item (32) is exempt from the provisions of Section 3-75. As
1533	1533	19 used in this item (32):
1534	1534	20 "Breast pump" means an electrically controlled or
1535	1535	21 manually controlled pump device designed or marketed to be
1536	1536	22 used to express milk from a human breast during lactation,
1537	1537	23 including the pump device and any battery, AC adapter, or
1538	1538	24 other power supply unit that is used to power the pump
1539	1539	25 device and is packaged and sold with the pump device at the
1540	1540	26 time of sale.
1541	1541
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546	HB5901 - 42 - LRB103 42819 HLH 76068 b
1547	1547
1548	1548
1549	1549	HB5901- 43 -LRB103 42819 HLH 76068 b HB5901 - 43 - LRB103 42819 HLH 76068 b
1550	1550	HB5901 - 43 - LRB103 42819 HLH 76068 b
1551	1551	1 "Breast pump collection and storage supplies" means
1552	1552	2 items of tangible personal property designed or marketed
1553	1553	3 to be used in conjunction with a breast pump to collect
1554	1554	4 milk expressed from a human breast and to store collected
1555	1555	5 milk until it is ready for consumption.
1556	1556	6 "Breast pump collection and storage supplies"
1557	1557	7 includes, but is not limited to: breast shields and breast
1558	1558	8 shield connectors; breast pump tubes and tubing adapters;
1559	1559	9 breast pump valves and membranes; backflow protectors and
1560	1560	10 backflow protector adaptors; bottles and bottle caps
1561	1561	11 specific to the operation of the breast pump; and breast
1562	1562	12 milk storage bags.
1563	1563	13 "Breast pump collection and storage supplies" does not
1564	1564	14 include: (1) bottles and bottle caps not specific to the
1565	1565	15 operation of the breast pump; (2) breast pump travel bags
1566	1566	16 and other similar carrying accessories, including ice
1567	1567	17 packs, labels, and other similar products; (3) breast pump
1568	1568	18 cleaning supplies; (4) nursing bras, bra pads, breast
1569	1569	19 shells, and other similar products; and (5) creams,
1570	1570	20 ointments, and other similar products that relieve
1571	1571	21 breastfeeding-related symptoms or conditions of the
1572	1572	22 breasts or nipples, unless sold as part of a breast pump
1573	1573	23 kit that is pre-packaged by the breast pump manufacturer
1574	1574	24 or distributor.
1575	1575	25 "Breast pump kit" means a kit that: (1) contains no
1576	1576	26 more than a breast pump, breast pump collection and
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582	HB5901 - 43 - LRB103 42819 HLH 76068 b
1583	1583
1584	1584
1585	1585	HB5901- 44 -LRB103 42819 HLH 76068 b HB5901 - 44 - LRB103 42819 HLH 76068 b
1586	1586	HB5901 - 44 - LRB103 42819 HLH 76068 b
1587	1587	1 storage supplies, a rechargeable battery for operating the
1588	1588	2 breast pump, a breastmilk cooler, bottle stands, ice
1589	1589	3 packs, and a breast pump carrying case; and (2) is
1590	1590	4 pre-packaged as a breast pump kit by the breast pump
1591	1591	5 manufacturer or distributor.
1592	1592	6 (33) Tangible personal property sold by or on behalf of
1593	1593	7 the State Treasurer pursuant to the Revised Uniform Unclaimed
1594	1594	8 Property Act. This item (33) is exempt from the provisions of
1595	1595	9 Section 3-75.
1596	1596	10 (34) Beginning on January 1, 2024, tangible personal
1597	1597	11 property purchased by an active duty member of the armed
1598	1598	12 forces of the United States who presents valid military
1599	1599	13 identification and purchases the property using a form of
1600	1600	14 payment where the federal government is the payor. The member
1601	1601	15 of the armed forces must complete, at the point of sale, a form
1602	1602	16 prescribed by the Department of Revenue documenting that the
1603	1603	17 transaction is eligible for the exemption under this
1604	1604	18 paragraph. Retailers must keep the form as documentation of
1605	1605	19 the exemption in their records for a period of not less than 6
1606	1606	20 years. "Armed forces of the United States" means the United
1607	1607	21 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1608	1608	22 This paragraph is exempt from the provisions of Section 3-75.
1609	1609	23 (35) Materials furnished to a common interest community
1610	1610	24 association pursuant to a contract entered into with the
1611	1611	25 highway commissioner of a road district under subsection (k)
1612	1612	26 of Section 1-30 of the Common Interest Community Association
1613	1613
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618	HB5901 - 44 - LRB103 42819 HLH 76068 b
1619	1619
1620	1620
1621	1621	HB5901- 45 -LRB103 42819 HLH 76068 b HB5901 - 45 - LRB103 42819 HLH 76068 b
1622	1622	HB5901 - 45 - LRB103 42819 HLH 76068 b
1623	1623	1 Act. This paragraph is exempt from the provisions of Section
1624	1624	2 3-75.
1625	1625	3 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1626	1626	4 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1627	1627	5 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1628	1628	6 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1629	1629	7 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1630	1630	8 revised 12-12-23.)
1631	1631	9 Section 15. The Service Occupation Tax Act is amended by
1632	1632	10 changing Section 3-5 as follows:
1633	1633	11 (35 ILCS 115/3-5)
1634	1634	12 Sec. 3-5. Exemptions. The following tangible personal
1635	1635	13 property is exempt from the tax imposed by this Act:
1636	1636	14 (1) Personal property sold by a corporation, society,
1637	1637	15 association, foundation, institution, or organization, other
1638	1638	16 than a limited liability company, that is organized and
1639	1639	17 operated as a not-for-profit service enterprise for the
1640	1640	18 benefit of persons 65 years of age or older if the personal
1641	1641	19 property was not purchased by the enterprise for the purpose
1642	1642	20 of resale by the enterprise.
1643	1643	21 (2) Personal property purchased by a not-for-profit
1644	1644	22 Illinois county fair association for use in conducting,
1645	1645	23 operating, or promoting the county fair.
1646	1646	24 (3) Personal property purchased by any not-for-profit arts
1647	1647
1648	1648
1649	1649
1650	1650
1651	1651
1652	1652	HB5901 - 45 - LRB103 42819 HLH 76068 b
1653	1653
1654	1654
1655	1655	HB5901- 46 -LRB103 42819 HLH 76068 b HB5901 - 46 - LRB103 42819 HLH 76068 b
1656	1656	HB5901 - 46 - LRB103 42819 HLH 76068 b
1657	1657	1 or cultural organization that establishes, by proof required
1658	1658	2 by the Department by rule, that it has received an exemption
1659	1659	3 under Section 501(c)(3) of the Internal Revenue Code and that
1660	1660	4 is organized and operated primarily for the presentation or
1661	1661	5 support of arts or cultural programming, activities, or
1662	1662	6 services. These organizations include, but are not limited to,
1663	1663	7 music and dramatic arts organizations such as symphony
1664	1664	8 orchestras and theatrical groups, arts and cultural service
1665	1665	9 organizations, local arts councils, visual arts organizations,
1666	1666	10 and media arts organizations. On and after July 1, 2001 (the
1667	1667	11 effective date of Public Act 92-35), however, an entity
1668	1668	12 otherwise eligible for this exemption shall not make tax-free
1669	1669	13 purchases unless it has an active identification number issued
1670	1670	14 by the Department.
1671	1671	15 (4) Legal tender, currency, medallions, or gold or silver
1672	1672	16 coinage issued by the State of Illinois, the government of the
1673	1673	17 United States of America, or the government of any foreign
1674	1674	18 country, and bullion.
1675	1675	19 (5) Until July 1, 2003 and beginning again on September 1,
1676	1676	20 2004 through August 30, 2014, graphic arts machinery and
1677	1677	21 equipment, including repair and replacement parts, both new
1678	1678	22 and used, and including that manufactured on special order or
1679	1679	23 purchased for lease, certified by the purchaser to be used
1680	1680	24 primarily for graphic arts production. Equipment includes
1681	1681	25 chemicals or chemicals acting as catalysts but only if the
1682	1682	26 chemicals or chemicals acting as catalysts effect a direct and
1683	1683
1684	1684
1685	1685
1686	1686
1687	1687
1688	1688	HB5901 - 46 - LRB103 42819 HLH 76068 b
1689	1689
1690	1690
1691	1691	HB5901- 47 -LRB103 42819 HLH 76068 b HB5901 - 47 - LRB103 42819 HLH 76068 b
1692	1692	HB5901 - 47 - LRB103 42819 HLH 76068 b
1693	1693	1 immediate change upon a graphic arts product. Beginning on
1694	1694	2 July 1, 2017, graphic arts machinery and equipment is included
1695	1695	3 in the manufacturing and assembling machinery and equipment
1696	1696	4 exemption under Section 2 of this Act.
1697	1697	5 (6) Personal property sold by a teacher-sponsored student
1698	1698	6 organization affiliated with an elementary or secondary school
1699	1699	7 located in Illinois.
1700	1700	8 (7) Farm machinery and equipment, both new and used,
1701	1701	9 including that manufactured on special order, certified by the
1702	1702	10 purchaser to be used primarily for production agriculture or
1703	1703	11 State or federal agricultural programs, including individual
1704	1704	12 replacement parts for the machinery and equipment, including
1705	1705	13 machinery and equipment purchased for lease, and including
1706	1706	14 implements of husbandry defined in Section 1-130 of the
1707	1707	15 Illinois Vehicle Code, farm machinery and agricultural
1708	1708	16 chemical and fertilizer spreaders, and nurse wagons required
1709	1709	17 to be registered under Section 3-809 of the Illinois Vehicle
1710	1710	18 Code, but excluding other motor vehicles required to be
1711	1711	19 registered under the Illinois Vehicle Code. Horticultural
1712	1712	20 polyhouses or hoop houses used for propagating, growing, or
1713	1713	21 overwintering plants shall be considered farm machinery and
1714	1714	22 equipment under this item (7). Agricultural chemical tender
1715	1715	23 tanks and dry boxes shall include units sold separately from a
1716	1716	24 motor vehicle required to be licensed and units sold mounted
1717	1717	25 on a motor vehicle required to be licensed if the selling price
1718	1718	26 of the tender is separately stated.
1719	1719
1720	1720
1721	1721
1722	1722
1723	1723
1724	1724	HB5901 - 47 - LRB103 42819 HLH 76068 b
1725	1725
1726	1726
1727	1727	HB5901- 48 -LRB103 42819 HLH 76068 b HB5901 - 48 - LRB103 42819 HLH 76068 b
1728	1728	HB5901 - 48 - LRB103 42819 HLH 76068 b
1729	1729	1 Farm machinery and equipment shall include precision
1730	1730	2 farming equipment that is installed or purchased to be
1731	1731	3 installed on farm machinery and equipment, including, but not
1732	1732	4 limited to, tractors, harvesters, sprayers, planters, seeders,
1733	1733	5 or spreaders. Precision farming equipment includes, but is not
1734	1734	6 limited to, soil testing sensors, computers, monitors,
1735	1735	7 software, global positioning and mapping systems, and other
1736	1736	8 such equipment.
1737	1737	9 Farm machinery and equipment also includes computers,
1738	1738	10 sensors, software, and related equipment used primarily in the
1739	1739	11 computer-assisted operation of production agriculture
1740	1740	12 facilities, equipment, and activities such as, but not limited
1741	1741	13 to, the collection, monitoring, and correlation of animal and
1742	1742	14 crop data for the purpose of formulating animal diets and
1743	1743	15 agricultural chemicals.
1744	1744	16 Beginning on January 1, 2024, farm machinery and equipment
1745	1745	17 also includes electrical power generation equipment used
1746	1746	18 primarily for production agriculture.
1747	1747	19 This item (7) is exempt from the provisions of Section
1748	1748	20 3-55.
1749	1749	21 (8) Until June 30, 2013, fuel and petroleum products sold
1750	1750	22 to or used by an air common carrier, certified by the carrier
1751	1751	23 to be used for consumption, shipment, or storage in the
1752	1752	24 conduct of its business as an air common carrier, for a flight
1753	1753	25 destined for or returning from a location or locations outside
1754	1754	26 the United States without regard to previous or subsequent
1755	1755
1756	1756
1757	1757
1758	1758
1759	1759
1760	1760	HB5901 - 48 - LRB103 42819 HLH 76068 b
1761	1761
1762	1762
1763	1763	HB5901- 49 -LRB103 42819 HLH 76068 b HB5901 - 49 - LRB103 42819 HLH 76068 b
1764	1764	HB5901 - 49 - LRB103 42819 HLH 76068 b
1765	1765	1 domestic stopovers.
1766	1766	2 Beginning July 1, 2013, fuel and petroleum products sold
1767	1767	3 to or used by an air carrier, certified by the carrier to be
1768	1768	4 used for consumption, shipment, or storage in the conduct of
1769	1769	5 its business as an air common carrier, for a flight that (i) is
1770	1770	6 engaged in foreign trade or is engaged in trade between the
1771	1771	7 United States and any of its possessions and (ii) transports
1772	1772	8 at least one individual or package for hire from the city of
1773	1773	9 origination to the city of final destination on the same
1774	1774	10 aircraft, without regard to a change in the flight number of
1775	1775	11 that aircraft.
1776	1776	12 (9) Proceeds of mandatory service charges separately
1777	1777	13 stated on customers' bills for the purchase and consumption of
1778	1778	14 food and beverages, to the extent that the proceeds of the
1779	1779	15 service charge are in fact turned over as tips or as a
1780	1780	16 substitute for tips to the employees who participate directly
1781	1781	17 in preparing, serving, hosting or cleaning up the food or
1782	1782	18 beverage function with respect to which the service charge is
1783	1783	19 imposed.
1784	1784	20 (10) Until July 1, 2003, oil field exploration, drilling,
1785	1785	21 and production equipment, including (i) rigs and parts of
1786	1786	22 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1787	1787	23 pipe and tubular goods, including casing and drill strings,
1788	1788	24 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1789	1789	25 lines, (v) any individual replacement part for oil field
1790	1790	26 exploration, drilling, and production equipment, and (vi)
1791	1791
1792	1792
1793	1793
1794	1794
1795	1795
1796	1796	HB5901 - 49 - LRB103 42819 HLH 76068 b
1797	1797
1798	1798
1799	1799	HB5901- 50 -LRB103 42819 HLH 76068 b HB5901 - 50 - LRB103 42819 HLH 76068 b
1800	1800	HB5901 - 50 - LRB103 42819 HLH 76068 b
1801	1801	1 machinery and equipment purchased for lease; but excluding
1802	1802	2 motor vehicles required to be registered under the Illinois
1803	1803	3 Vehicle Code.
1804	1804	4 (11) Photoprocessing machinery and equipment, including
1805	1805	5 repair and replacement parts, both new and used, including
1806	1806	6 that manufactured on special order, certified by the purchaser
1807	1807	7 to be used primarily for photoprocessing, and including
1808	1808	8 photoprocessing machinery and equipment purchased for lease.
1809	1809	9 (12) Until July 1, 2028, coal and aggregate exploration,
1810	1810	10 mining, off-highway hauling, processing, maintenance, and
1811	1811	11 reclamation equipment, including replacement parts and
1812	1812	12 equipment, and including equipment purchased for lease, but
1813	1813	13 excluding motor vehicles required to be registered under the
1814	1814	14 Illinois Vehicle Code. The changes made to this Section by
1815	1815	15 Public Act 97-767 apply on and after July 1, 2003, but no claim
1816	1816	16 for credit or refund is allowed on or after August 16, 2013
1817	1817	17 (the effective date of Public Act 98-456) for such taxes paid
1818	1818	18 during the period beginning July 1, 2003 and ending on August
1819	1819	19 16, 2013 (the effective date of Public Act 98-456).
1820	1820	20 (13) Beginning January 1, 1992 and through June 30, 2016,
1821	1821	21 food for human consumption that is to be consumed off the
1822	1822	22 premises where it is sold (other than alcoholic beverages,
1823	1823	23 soft drinks and food that has been prepared for immediate
1824	1824	24 consumption) and prescription and non-prescription medicines,
1825	1825	25 drugs, medical appliances, and insulin, urine testing
1826	1826	26 materials, syringes, and needles used by diabetics, for human
1827	1827
1828	1828
1829	1829
1830	1830
1831	1831
1832	1832	HB5901 - 50 - LRB103 42819 HLH 76068 b
1833	1833
1834	1834
1835	1835	HB5901- 51 -LRB103 42819 HLH 76068 b HB5901 - 51 - LRB103 42819 HLH 76068 b
1836	1836	HB5901 - 51 - LRB103 42819 HLH 76068 b
1837	1837	1 use, when purchased for use by a person receiving medical
1838	1838	2 assistance under Article V of the Illinois Public Aid Code who
1839	1839	3 resides in a licensed long-term care facility, as defined in
1840	1840	4 the Nursing Home Care Act, or in a licensed facility as defined
1841	1841	5 in the ID/DD Community Care Act, the MC/DD Act, or the
1842	1842	6 Specialized Mental Health Rehabilitation Act of 2013.
1843	1843	7 (14) Semen used for artificial insemination of livestock
1844	1844	8 for direct agricultural production.
1845	1845	9 (15) Horses, or interests in horses, registered with and
1846	1846	10 meeting the requirements of any of the Arabian Horse Club
1847	1847	11 Registry of America, Appaloosa Horse Club, American Quarter
1848	1848	12 Horse Association, United States Trotting Association, or
1849	1849	13 Jockey Club, as appropriate, used for purposes of breeding or
1850	1850	14 racing for prizes. This item (15) is exempt from the
1851	1851	15 provisions of Section 3-55, and the exemption provided for
1852	1852	16 under this item (15) applies for all periods beginning May 30,
1853	1853	17 1995, but no claim for credit or refund is allowed on or after
1854	1854	18 January 1, 2008 (the effective date of Public Act 95-88) for
1855	1855	19 such taxes paid during the period beginning May 30, 2000 and
1856	1856	20 ending on January 1, 2008 (the effective date of Public Act
1857	1857	21 95-88).
1858	1858	22 (16) Computers and communications equipment utilized for
1859	1859	23 any hospital purpose and equipment used in the diagnosis,
1860	1860	24 analysis, or treatment of hospital patients sold to a lessor
1861	1861	25 who leases the equipment, under a lease of one year or longer
1862	1862	26 executed or in effect at the time of the purchase, to a
1863	1863
1864	1864
1865	1865
1866	1866
1867	1867
1868	1868	HB5901 - 51 - LRB103 42819 HLH 76068 b
1869	1869
1870	1870
1871	1871	HB5901- 52 -LRB103 42819 HLH 76068 b HB5901 - 52 - LRB103 42819 HLH 76068 b
1872	1872	HB5901 - 52 - LRB103 42819 HLH 76068 b
1873	1873	1 hospital that has been issued an active tax exemption
1874	1874	2 identification number by the Department under Section 1g of
1875	1875	3 the Retailers' Occupation Tax Act.
1876	1876	4 (17) Personal property sold to a lessor who leases the
1877	1877	5 property, under a lease of one year or longer executed or in
1878	1878	6 effect at the time of the purchase, to a governmental body that
1879	1879	7 has been issued an active tax exemption identification number
1880	1880	8 by the Department under Section 1g of the Retailers'
1881	1881	9 Occupation Tax Act.
1882	1882	10 (18) Beginning with taxable years ending on or after
1883	1883	11 December 31, 1995 and ending with taxable years ending on or
1884	1884	12 before December 31, 2004, personal property that is donated
1885	1885	13 for disaster relief to be used in a State or federally declared
1886	1886	14 disaster area in Illinois or bordering Illinois by a
1887	1887	15 manufacturer or retailer that is registered in this State to a
1888	1888	16 corporation, society, association, foundation, or institution
1889	1889	17 that has been issued a sales tax exemption identification
1890	1890	18 number by the Department that assists victims of the disaster
1891	1891	19 who reside within the declared disaster area.
1892	1892	20 (19) Beginning with taxable years ending on or after
1893	1893	21 December 31, 1995 and ending with taxable years ending on or
1894	1894	22 before December 31, 2004, personal property that is used in
1895	1895	23 the performance of infrastructure repairs in this State,
1896	1896	24 including, but not limited to, municipal roads and streets,
1897	1897	25 access roads, bridges, sidewalks, waste disposal systems,
1898	1898	26 water and sewer line extensions, water distribution and
1899	1899
1900	1900
1901	1901
1902	1902
1903	1903
1904	1904	HB5901 - 52 - LRB103 42819 HLH 76068 b
1905	1905
1906	1906
1907	1907	HB5901- 53 -LRB103 42819 HLH 76068 b HB5901 - 53 - LRB103 42819 HLH 76068 b
1908	1908	HB5901 - 53 - LRB103 42819 HLH 76068 b
1909	1909	1 purification facilities, storm water drainage and retention
1910	1910	2 facilities, and sewage treatment facilities, resulting from a
1911	1911	3 State or federally declared disaster in Illinois or bordering
1912	1912	4 Illinois when such repairs are initiated on facilities located
1913	1913	5 in the declared disaster area within 6 months after the
1914	1914	6 disaster.
1915	1915	7 (20) Beginning July 1, 1999, game or game birds sold at a
1916	1916	8 "game breeding and hunting preserve area" as that term is used
1917	1917	9 in the Wildlife Code. This paragraph is exempt from the
1918	1918	10 provisions of Section 3-55.
1919	1919	11 (21) A motor vehicle, as that term is defined in Section
1920	1920	12 1-146 of the Illinois Vehicle Code, that is donated to a
1921	1921	13 corporation, limited liability company, society, association,
1922	1922	14 foundation, or institution that is determined by the
1923	1923	15 Department to be organized and operated exclusively for
1924	1924	16 educational purposes. For purposes of this exemption, "a
1925	1925	17 corporation, limited liability company, society, association,
1926	1926	18 foundation, or institution organized and operated exclusively
1927	1927	19 for educational purposes" means all tax-supported public
1928	1928	20 schools, private schools that offer systematic instruction in
1929	1929	21 useful branches of learning by methods common to public
1930	1930	22 schools and that compare favorably in their scope and
1931	1931	23 intensity with the course of study presented in tax-supported
1932	1932	24 schools, and vocational or technical schools or institutes
1933	1933	25 organized and operated exclusively to provide a course of
1934	1934	26 study of not less than 6 weeks duration and designed to prepare
1935	1935
1936	1936
1937	1937
1938	1938
1939	1939
1940	1940	HB5901 - 53 - LRB103 42819 HLH 76068 b
1941	1941
1942	1942
1943	1943	HB5901- 54 -LRB103 42819 HLH 76068 b HB5901 - 54 - LRB103 42819 HLH 76068 b
1944	1944	HB5901 - 54 - LRB103 42819 HLH 76068 b
1945	1945	1 individuals to follow a trade or to pursue a manual,
1946	1946	2 technical, mechanical, industrial, business, or commercial
1947	1947	3 occupation.
1948	1948	4 (22) Beginning January 1, 2000, personal property,
1949	1949	5 including food, purchased through fundraising events for the
1950	1950	6 benefit of a public or private elementary or secondary school,
1951	1951	7 a group of those schools, or one or more school districts if
1952	1952	8 the events are sponsored by an entity recognized by the school
1953	1953	9 district that consists primarily of volunteers and includes
1954	1954	10 parents and teachers of the school children. This paragraph
1955	1955	11 does not apply to fundraising events (i) for the benefit of
1956	1956	12 private home instruction or (ii) for which the fundraising
1957	1957	13 entity purchases the personal property sold at the events from
1958	1958	14 another individual or entity that sold the property for the
1959	1959	15 purpose of resale by the fundraising entity and that profits
1960	1960	16 from the sale to the fundraising entity. This paragraph is
1961	1961	17 exempt from the provisions of Section 3-55.
1962	1962	18 (23) Beginning January 1, 2000 and through December 31,
1963	1963	19 2001, new or used automatic vending machines that prepare and
1964	1964	20 serve hot food and beverages, including coffee, soup, and
1965	1965	21 other items, and replacement parts for these machines.
1966	1966	22 Beginning January 1, 2002 and through June 30, 2003, machines
1967	1967	23 and parts for machines used in commercial, coin-operated
1968	1968	24 amusement and vending business if a use or occupation tax is
1969	1969	25 paid on the gross receipts derived from the use of the
1970	1970	26 commercial, coin-operated amusement and vending machines. This
1971	1971
1972	1972
1973	1973
1974	1974
1975	1975
1976	1976	HB5901 - 54 - LRB103 42819 HLH 76068 b
1977	1977
1978	1978
1979	1979	HB5901- 55 -LRB103 42819 HLH 76068 b HB5901 - 55 - LRB103 42819 HLH 76068 b
1980	1980	HB5901 - 55 - LRB103 42819 HLH 76068 b
1981	1981	1 paragraph is exempt from the provisions of Section 3-55.
1982	1982	2 (24) Beginning on August 2, 2001 (the effective date of
1983	1983	3 Public Act 92-227), computers and communications equipment
1984	1984	4 utilized for any hospital purpose and equipment used in the
1985	1985	5 diagnosis, analysis, or treatment of hospital patients sold to
1986	1986	6 a lessor who leases the equipment, under a lease of one year or
1987	1987	7 longer executed or in effect at the time of the purchase, to a
1988	1988	8 hospital that has been issued an active tax exemption
1989	1989	9 identification number by the Department under Section 1g of
1990	1990	10 the Retailers' Occupation Tax Act. This paragraph is exempt
1991	1991	11 from the provisions of Section 3-55.
1992	1992	12 (25) Beginning on August 2, 2001 (the effective date of
1993	1993	13 Public Act 92-227), personal property sold to a lessor who
1994	1994	14 leases the property, under a lease of one year or longer
1995	1995	15 executed or in effect at the time of the purchase, to a
1996	1996	16 governmental body that has been issued an active tax exemption
1997	1997	17 identification number by the Department under Section 1g of
1998	1998	18 the Retailers' Occupation Tax Act. This paragraph is exempt
1999	1999	19 from the provisions of Section 3-55.
2000	2000	20 (26) Beginning on January 1, 2002 and through June 30,
2001	2001	21 2016, tangible personal property purchased from an Illinois
2002	2002	22 retailer by a taxpayer engaged in centralized purchasing
2003	2003	23 activities in Illinois who will, upon receipt of the property
2004	2004	24 in Illinois, temporarily store the property in Illinois (i)
2005	2005	25 for the purpose of subsequently transporting it outside this
2006	2006	26 State for use or consumption thereafter solely outside this
2007	2007
2008	2008
2009	2009
2010	2010
2011	2011
2012	2012	HB5901 - 55 - LRB103 42819 HLH 76068 b
2013	2013
2014	2014
2015	2015	HB5901- 56 -LRB103 42819 HLH 76068 b HB5901 - 56 - LRB103 42819 HLH 76068 b
2016	2016	HB5901 - 56 - LRB103 42819 HLH 76068 b
2017	2017	1 State or (ii) for the purpose of being processed, fabricated,
2018	2018	2 or manufactured into, attached to, or incorporated into other
2019	2019	3 tangible personal property to be transported outside this
2020	2020	4 State and thereafter used or consumed solely outside this
2021	2021	5 State. The Director of Revenue shall, pursuant to rules
2022	2022	6 adopted in accordance with the Illinois Administrative
2023	2023	7 Procedure Act, issue a permit to any taxpayer in good standing
2024	2024	8 with the Department who is eligible for the exemption under
2025	2025	9 this paragraph (26). The permit issued under this paragraph
2026	2026	10 (26) shall authorize the holder, to the extent and in the
2027	2027	11 manner specified in the rules adopted under this Act, to
2028	2028	12 purchase tangible personal property from a retailer exempt
2029	2029	13 from the taxes imposed by this Act. Taxpayers shall maintain
2030	2030	14 all necessary books and records to substantiate the use and
2031	2031	15 consumption of all such tangible personal property outside of
2032	2032	16 the State of Illinois.
2033	2033	17 (27) Beginning January 1, 2008, tangible personal property
2034	2034	18 used in the construction or maintenance of a community water
2035	2035	19 supply, as defined under Section 3.145 of the Environmental
2036	2036	20 Protection Act, that is operated by a not-for-profit
2037	2037	21 corporation that holds a valid water supply permit issued
2038	2038	22 under Title IV of the Environmental Protection Act. This
2039	2039	23 paragraph is exempt from the provisions of Section 3-55.
2040	2040	24 (28) Tangible personal property sold to a
2041	2041	25 public-facilities corporation, as described in Section
2042	2042	26 11-65-10 of the Illinois Municipal Code, for purposes of
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047
2048	2048	HB5901 - 56 - LRB103 42819 HLH 76068 b
2049	2049
2050	2050
2051	2051	HB5901- 57 -LRB103 42819 HLH 76068 b HB5901 - 57 - LRB103 42819 HLH 76068 b
2052	2052	HB5901 - 57 - LRB103 42819 HLH 76068 b
2053	2053	1 constructing or furnishing a municipal convention hall, but
2054	2054	2 only if the legal title to the municipal convention hall is
2055	2055	3 transferred to the municipality without any further
2056	2056	4 consideration by or on behalf of the municipality at the time
2057	2057	5 of the completion of the municipal convention hall or upon the
2058	2058	6 retirement or redemption of any bonds or other debt
2059	2059	7 instruments issued by the public-facilities corporation in
2060	2060	8 connection with the development of the municipal convention
2061	2061	9 hall. This exemption includes existing public-facilities
2062	2062	10 corporations as provided in Section 11-65-25 of the Illinois
2063	2063	11 Municipal Code. This paragraph is exempt from the provisions
2064	2064	12 of Section 3-55.
2065	2065	13 (29) Beginning January 1, 2010 and continuing through
2066	2066	14 December 31, 2029, materials, parts, equipment, components,
2067	2067	15 and furnishings incorporated into or upon an aircraft as part
2068	2068	16 of the modification, refurbishment, completion, replacement,
2069	2069	17 repair, or maintenance of the aircraft. This exemption
2070	2070	18 includes consumable supplies used in the modification,
2071	2071	19 refurbishment, completion, replacement, repair, and
2072	2072	20 maintenance of aircraft. However, until January 1, 2024, this
2073	2073	21 exemption excludes any materials, parts, equipment,
2074	2074	22 components, and consumable supplies used in the modification,
2075	2075	23 replacement, repair, and maintenance of aircraft engines or
2076	2076	24 power plants, whether such engines or power plants are
2077	2077	25 installed or uninstalled upon any such aircraft. "Consumable
2078	2078	26 supplies" include, but are not limited to, adhesive, tape,
2079	2079
2080	2080
2081	2081
2082	2082
2083	2083
2084	2084	HB5901 - 57 - LRB103 42819 HLH 76068 b
2085	2085
2086	2086
2087	2087	HB5901- 58 -LRB103 42819 HLH 76068 b HB5901 - 58 - LRB103 42819 HLH 76068 b
2088	2088	HB5901 - 58 - LRB103 42819 HLH 76068 b
2089	2089	1 sandpaper, general purpose lubricants, cleaning solution,
2090	2090	2 latex gloves, and protective films.
2091	2091	3 Beginning January 1, 2010 and continuing through December
2092	2092	4 31, 2023, this exemption applies only to the transfer of
2093	2093	5 qualifying tangible personal property incident to the
2094	2094	6 modification, refurbishment, completion, replacement, repair,
2095	2095	7 or maintenance of an aircraft by persons who (i) hold an Air
2096	2096	8 Agency Certificate and are empowered to operate an approved
2097	2097	9 repair station by the Federal Aviation Administration, (ii)
2098	2098	10 have a Class IV Rating, and (iii) conduct operations in
2099	2099	11 accordance with Part 145 of the Federal Aviation Regulations.
2100	2100	12 The exemption does not include aircraft operated by a
2101	2101	13 commercial air carrier providing scheduled passenger air
2102	2102	14 service pursuant to authority issued under Part 121 or Part
2103	2103	15 129 of the Federal Aviation Regulations. From January 1, 2024
2104	2104	16 through December 31, 2029, this exemption applies only to the
2105	2105	17 use of qualifying tangible personal property by: (A) persons
2106	2106	18 who modify, refurbish, complete, repair, replace, or maintain
2107	2107	19 aircraft and who (i) hold an Air Agency Certificate and are
2108	2108	20 empowered to operate an approved repair station by the Federal
2109	2109	21 Aviation Administration, (ii) have a Class IV Rating, and
2110	2110	22 (iii) conduct operations in accordance with Part 145 of the
2111	2111	23 Federal Aviation Regulations; and (B) persons who engage in
2112	2112	24 the modification, replacement, repair, and maintenance of
2113	2113	25 aircraft engines or power plants without regard to whether or
2114	2114	26 not those persons meet the qualifications of item (A).
2115	2115
2116	2116
2117	2117
2118	2118
2119	2119
2120	2120	HB5901 - 58 - LRB103 42819 HLH 76068 b
2121	2121
2122	2122
2123	2123	HB5901- 59 -LRB103 42819 HLH 76068 b HB5901 - 59 - LRB103 42819 HLH 76068 b
2124	2124	HB5901 - 59 - LRB103 42819 HLH 76068 b
2125	2125	1 The changes made to this paragraph (29) by Public Act
2126	2126	2 98-534 are declarative of existing law. It is the intent of the
2127	2127	3 General Assembly that the exemption under this paragraph (29)
2128	2128	4 applies continuously from January 1, 2010 through December 31,
2129	2129	5 2024; however, no claim for credit or refund is allowed for
2130	2130	6 taxes paid as a result of the disallowance of this exemption on
2131	2131	7 or after January 1, 2015 and prior to February 5, 2020 (the
2132	2132	8 effective date of Public Act 101-629).
2133	2133	9 (30) Beginning January 1, 2017 and through December 31,
2134	2134	10 2026, menstrual pads, tampons, and menstrual cups.
2135	2135	11 (31) Tangible personal property transferred to a purchaser
2136	2136	12 who is exempt from tax by operation of federal law. This
2137	2137	13 paragraph is exempt from the provisions of Section 3-55.
2138	2138	14 (32) Qualified tangible personal property used in the
2139	2139	15 construction or operation of a data center that has been
2140	2140	16 granted a certificate of exemption by the Department of
2141	2141	17 Commerce and Economic Opportunity, whether that tangible
2142	2142	18 personal property is purchased by the owner, operator, or
2143	2143	19 tenant of the data center or by a contractor or subcontractor
2144	2144	20 of the owner, operator, or tenant. Data centers that would
2145	2145	21 have qualified for a certificate of exemption prior to January
2146	2146	22 1, 2020 had Public Act 101-31 been in effect, may apply for and
2147	2147	23 obtain an exemption for subsequent purchases of computer
2148	2148	24 equipment or enabling software purchased or leased to upgrade,
2149	2149	25 supplement, or replace computer equipment or enabling software
2150	2150	26 purchased or leased in the original investment that would have
2151	2151
2152	2152
2153	2153
2154	2154
2155	2155
2156	2156	HB5901 - 59 - LRB103 42819 HLH 76068 b
2157	2157
2158	2158
2159	2159	HB5901- 60 -LRB103 42819 HLH 76068 b HB5901 - 60 - LRB103 42819 HLH 76068 b
2160	2160	HB5901 - 60 - LRB103 42819 HLH 76068 b
2161	2161	1 qualified.
2162	2162	2 The Department of Commerce and Economic Opportunity shall
2163	2163	3 grant a certificate of exemption under this item (32) to
2164	2164	4 qualified data centers as defined by Section 605-1025 of the
2165	2165	5 Department of Commerce and Economic Opportunity Law of the
2166	2166	6 Civil Administrative Code of Illinois.
2167	2167	7 For the purposes of this item (32):
2168	2168	8 "Data center" means a building or a series of
2169	2169	9 buildings rehabilitated or constructed to house working
2170	2170	10 servers in one physical location or multiple sites within
2171	2171	11 the State of Illinois.
2172	2172	12 "Qualified tangible personal property" means:
2173	2173	13 electrical systems and equipment; climate control and
2174	2174	14 chilling equipment and systems; mechanical systems and
2175	2175	15 equipment; monitoring and secure systems; emergency
2176	2176	16 generators; hardware; computers; servers; data storage
2177	2177	17 devices; network connectivity equipment; racks; cabinets;
2178	2178	18 telecommunications cabling infrastructure; raised floor
2179	2179	19 systems; peripheral components or systems; software;
2180	2180	20 mechanical, electrical, or plumbing systems; battery
2181	2181	21 systems; cooling systems and towers; temperature control
2182	2182	22 systems; other cabling; and other data center
2183	2183	23 infrastructure equipment and systems necessary to operate
2184	2184	24 qualified tangible personal property, including fixtures;
2185	2185	25 and component parts of any of the foregoing, including
2186	2186	26 installation, maintenance, repair, refurbishment, and
2187	2187
2188	2188
2189	2189
2190	2190
2191	2191
2192	2192	HB5901 - 60 - LRB103 42819 HLH 76068 b
2193	2193
2194	2194
2195	2195	HB5901- 61 -LRB103 42819 HLH 76068 b HB5901 - 61 - LRB103 42819 HLH 76068 b
2196	2196	HB5901 - 61 - LRB103 42819 HLH 76068 b
2197	2197	1 replacement of qualified tangible personal property to
2198	2198	2 generate, transform, transmit, distribute, or manage
2199	2199	3 electricity necessary to operate qualified tangible
2200	2200	4 personal property; and all other tangible personal
2201	2201	5 property that is essential to the operations of a computer
2202	2202	6 data center. The term "qualified tangible personal
2203	2203	7 property" also includes building materials physically
2204	2204	8 incorporated into in to the qualifying data center. To
2205	2205	9 document the exemption allowed under this Section, the
2206	2206	10 retailer must obtain from the purchaser a copy of the
2207	2207	11 certificate of eligibility issued by the Department of
2208	2208	12 Commerce and Economic Opportunity.
2209	2209	13 This item (32) is exempt from the provisions of Section
2210	2210	14 3-55.
2211	2211	15 (33) Beginning July 1, 2022, breast pumps, breast pump
2212	2212	16 collection and storage supplies, and breast pump kits. This
2213	2213	17 item (33) is exempt from the provisions of Section 3-55. As
2214	2214	18 used in this item (33):
2215	2215	19 "Breast pump" means an electrically controlled or
2216	2216	20 manually controlled pump device designed or marketed to be
2217	2217	21 used to express milk from a human breast during lactation,
2218	2218	22 including the pump device and any battery, AC adapter, or
2219	2219	23 other power supply unit that is used to power the pump
2220	2220	24 device and is packaged and sold with the pump device at the
2221	2221	25 time of sale.
2222	2222	26 "Breast pump collection and storage supplies" means
2223	2223
2224	2224
2225	2225
2226	2226
2227	2227
2228	2228	HB5901 - 61 - LRB103 42819 HLH 76068 b
2229	2229
2230	2230
2231	2231	HB5901- 62 -LRB103 42819 HLH 76068 b HB5901 - 62 - LRB103 42819 HLH 76068 b
2232	2232	HB5901 - 62 - LRB103 42819 HLH 76068 b
2233	2233	1 items of tangible personal property designed or marketed
2234	2234	2 to be used in conjunction with a breast pump to collect
2235	2235	3 milk expressed from a human breast and to store collected
2236	2236	4 milk until it is ready for consumption.
2237	2237	5 "Breast pump collection and storage supplies"
2238	2238	6 includes, but is not limited to: breast shields and breast
2239	2239	7 shield connectors; breast pump tubes and tubing adapters;
2240	2240	8 breast pump valves and membranes; backflow protectors and
2241	2241	9 backflow protector adaptors; bottles and bottle caps
2242	2242	10 specific to the operation of the breast pump; and breast
2243	2243	11 milk storage bags.
2244	2244	12 "Breast pump collection and storage supplies" does not
2245	2245	13 include: (1) bottles and bottle caps not specific to the
2246	2246	14 operation of the breast pump; (2) breast pump travel bags
2247	2247	15 and other similar carrying accessories, including ice
2248	2248	16 packs, labels, and other similar products; (3) breast pump
2249	2249	17 cleaning supplies; (4) nursing bras, bra pads, breast
2250	2250	18 shells, and other similar products; and (5) creams,
2251	2251	19 ointments, and other similar products that relieve
2252	2252	20 breastfeeding-related symptoms or conditions of the
2253	2253	21 breasts or nipples, unless sold as part of a breast pump
2254	2254	22 kit that is pre-packaged by the breast pump manufacturer
2255	2255	23 or distributor.
2256	2256	24 "Breast pump kit" means a kit that: (1) contains no
2257	2257	25 more than a breast pump, breast pump collection and
2258	2258	26 storage supplies, a rechargeable battery for operating the
2259	2259
2260	2260
2261	2261
2262	2262
2263	2263
2264	2264	HB5901 - 62 - LRB103 42819 HLH 76068 b
2265	2265
2266	2266
2267	2267	HB5901- 63 -LRB103 42819 HLH 76068 b HB5901 - 63 - LRB103 42819 HLH 76068 b
2268	2268	HB5901 - 63 - LRB103 42819 HLH 76068 b
2269	2269	1 breast pump, a breastmilk cooler, bottle stands, ice
2270	2270	2 packs, and a breast pump carrying case; and (2) is
2271	2271	3 pre-packaged as a breast pump kit by the breast pump
2272	2272	4 manufacturer or distributor.
2273	2273	5 (34) Tangible personal property sold by or on behalf of
2274	2274	6 the State Treasurer pursuant to the Revised Uniform Unclaimed
2275	2275	7 Property Act. This item (34) is exempt from the provisions of
2276	2276	8 Section 3-55.
2277	2277	9 (35) Beginning on January 1, 2024, tangible personal
2278	2278	10 property purchased by an active duty member of the armed
2279	2279	11 forces of the United States who presents valid military
2280	2280	12 identification and purchases the property using a form of
2281	2281	13 payment where the federal government is the payor. The member
2282	2282	14 of the armed forces must complete, at the point of sale, a form
2283	2283	15 prescribed by the Department of Revenue documenting that the
2284	2284	16 transaction is eligible for the exemption under this
2285	2285	17 paragraph. Retailers must keep the form as documentation of
2286	2286	18 the exemption in their records for a period of not less than 6
2287	2287	19 years. "Armed forces of the United States" means the United
2288	2288	20 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2289	2289	21 This paragraph is exempt from the provisions of Section 3-55.
2290	2290	22 (36) Materials furnished to a common interest community
2291	2291	23 association pursuant to a contract entered into with the
2292	2292	24 highway commissioner of a road district under subsection (k)
2293	2293	25 of Section 1-30 of the Common Interest Community Association
2294	2294	26 Act. This paragraph is exempt from the provisions of Section
2295	2295
2296	2296
2297	2297
2298	2298
2299	2299
2300	2300	HB5901 - 63 - LRB103 42819 HLH 76068 b
2301	2301
2302	2302
2303	2303	HB5901- 64 -LRB103 42819 HLH 76068 b HB5901 - 64 - LRB103 42819 HLH 76068 b
2304	2304	HB5901 - 64 - LRB103 42819 HLH 76068 b
2305	2305	1 3-55.
2306	2306	2 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2307	2307	3 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2308	2308	4 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2309	2309	5 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2310	2310	6 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2311	2311	7 revised 12-12-23.)
2312	2312	8 Section 20. The Retailers' Occupation Tax Act is amended
2313	2313	9 by changing Section 2-5 as follows:
2314	2314	10 (35 ILCS 120/2-5)
2315	2315	11 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2316	2316	12 the sale of the following tangible personal property are
2317	2317	13 exempt from the tax imposed by this Act:
2318	2318	14 (1) Farm chemicals.
2319	2319	15 (2) Farm machinery and equipment, both new and used,
2320	2320	16 including that manufactured on special order, certified by
2321	2321	17 the purchaser to be used primarily for production
2322	2322	18 agriculture or State or federal agricultural programs,
2323	2323	19 including individual replacement parts for the machinery
2324	2324	20 and equipment, including machinery and equipment purchased
2325	2325	21 for lease, and including implements of husbandry defined
2326	2326	22 in Section 1-130 of the Illinois Vehicle Code, farm
2327	2327	23 machinery and agricultural chemical and fertilizer
2328	2328	24 spreaders, and nurse wagons required to be registered
2329	2329
2330	2330
2331	2331
2332	2332
2333	2333
2334	2334	HB5901 - 64 - LRB103 42819 HLH 76068 b
2335	2335
2336	2336
2337	2337	HB5901- 65 -LRB103 42819 HLH 76068 b HB5901 - 65 - LRB103 42819 HLH 76068 b
2338	2338	HB5901 - 65 - LRB103 42819 HLH 76068 b
2339	2339	1 under Section 3-809 of the Illinois Vehicle Code, but
2340	2340	2 excluding other motor vehicles required to be registered
2341	2341	3 under the Illinois Vehicle Code. Horticultural polyhouses
2342	2342	4 or hoop houses used for propagating, growing, or
2343	2343	5 overwintering plants shall be considered farm machinery
2344	2344	6 and equipment under this item (2). Agricultural chemical
2345	2345	7 tender tanks and dry boxes shall include units sold
2346	2346	8 separately from a motor vehicle required to be licensed
2347	2347	9 and units sold mounted on a motor vehicle required to be
2348	2348	10 licensed, if the selling price of the tender is separately
2349	2349	11 stated.
2350	2350	12 Farm machinery and equipment shall include precision
2351	2351	13 farming equipment that is installed or purchased to be
2352	2352	14 installed on farm machinery and equipment including, but
2353	2353	15 not limited to, tractors, harvesters, sprayers, planters,
2354	2354	16 seeders, or spreaders. Precision farming equipment
2355	2355	17 includes, but is not limited to, soil testing sensors,
2356	2356	18 computers, monitors, software, global positioning and
2357	2357	19 mapping systems, and other such equipment.
2358	2358	20 Farm machinery and equipment also includes computers,
2359	2359	21 sensors, software, and related equipment used primarily in
2360	2360	22 the computer-assisted operation of production agriculture
2361	2361	23 facilities, equipment, and activities such as, but not
2362	2362	24 limited to, the collection, monitoring, and correlation of
2363	2363	25 animal and crop data for the purpose of formulating animal
2364	2364	26 diets and agricultural chemicals.
2365	2365
2366	2366
2367	2367
2368	2368
2369	2369
2370	2370	HB5901 - 65 - LRB103 42819 HLH 76068 b
2371	2371
2372	2372
2373	2373	HB5901- 66 -LRB103 42819 HLH 76068 b HB5901 - 66 - LRB103 42819 HLH 76068 b
2374	2374	HB5901 - 66 - LRB103 42819 HLH 76068 b
2375	2375	1 Beginning on January 1, 2024, farm machinery and
2376	2376	2 equipment also includes electrical power generation
2377	2377	3 equipment used primarily for production agriculture.
2378	2378	4 This item (2) is exempt from the provisions of Section
2379	2379	5 2-70.
2380	2380	6 (3) Until July 1, 2003, distillation machinery and
2381	2381	7 equipment, sold as a unit or kit, assembled or installed
2382	2382	8 by the retailer, certified by the user to be used only for
2383	2383	9 the production of ethyl alcohol that will be used for
2384	2384	10 consumption as motor fuel or as a component of motor fuel
2385	2385	11 for the personal use of the user, and not subject to sale
2386	2386	12 or resale.
2387	2387	13 (4) Until July 1, 2003 and beginning again September
2388	2388	14 1, 2004 through August 30, 2014, graphic arts machinery
2389	2389	15 and equipment, including repair and replacement parts,
2390	2390	16 both new and used, and including that manufactured on
2391	2391	17 special order or purchased for lease, certified by the
2392	2392	18 purchaser to be used primarily for graphic arts
2393	2393	19 production. Equipment includes chemicals or chemicals
2394	2394	20 acting as catalysts but only if the chemicals or chemicals
2395	2395	21 acting as catalysts effect a direct and immediate change
2396	2396	22 upon a graphic arts product. Beginning on July 1, 2017,
2397	2397	23 graphic arts machinery and equipment is included in the
2398	2398	24 manufacturing and assembling machinery and equipment
2399	2399	25 exemption under paragraph (14).
2400	2400	26 (5) A motor vehicle that is used for automobile
2401	2401
2402	2402
2403	2403
2404	2404
2405	2405
2406	2406	HB5901 - 66 - LRB103 42819 HLH 76068 b
2407	2407
2408	2408
2409	2409	HB5901- 67 -LRB103 42819 HLH 76068 b HB5901 - 67 - LRB103 42819 HLH 76068 b
2410	2410	HB5901 - 67 - LRB103 42819 HLH 76068 b
2411	2411	1 renting, as defined in the Automobile Renting Occupation
2412	2412	2 and Use Tax Act. This paragraph is exempt from the
2413	2413	3 provisions of Section 2-70.
2414	2414	4 (6) Personal property sold by a teacher-sponsored
2415	2415	5 student organization affiliated with an elementary or
2416	2416	6 secondary school located in Illinois.
2417	2417	7 (7) Until July 1, 2003, proceeds of that portion of
2418	2418	8 the selling price of a passenger car the sale of which is
2419	2419	9 subject to the Replacement Vehicle Tax.
2420	2420	10 (8) Personal property sold to an Illinois county fair
2421	2421	11 association for use in conducting, operating, or promoting
2422	2422	12 the county fair.
2423	2423	13 (9) Personal property sold to a not-for-profit arts or
2424	2424	14 cultural organization that establishes, by proof required
2425	2425	15 by the Department by rule, that it has received an
2426	2426	16 exemption under Section 501(c)(3) of the Internal Revenue
2427	2427	17 Code and that is organized and operated primarily for the
2428	2428	18 presentation or support of arts or cultural programming,
2429	2429	19 activities, or services. These organizations include, but
2430	2430	20 are not limited to, music and dramatic arts organizations
2431	2431	21 such as symphony orchestras and theatrical groups, arts
2432	2432	22 and cultural service organizations, local arts councils,
2433	2433	23 visual arts organizations, and media arts organizations.
2434	2434	24 On and after July 1, 2001 (the effective date of Public Act
2435	2435	25 92-35), however, an entity otherwise eligible for this
2436	2436	26 exemption shall not make tax-free purchases unless it has
2437	2437
2438	2438
2439	2439
2440	2440
2441	2441
2442	2442	HB5901 - 67 - LRB103 42819 HLH 76068 b
2443	2443
2444	2444
2445	2445	HB5901- 68 -LRB103 42819 HLH 76068 b HB5901 - 68 - LRB103 42819 HLH 76068 b
2446	2446	HB5901 - 68 - LRB103 42819 HLH 76068 b
2447	2447	1 an active identification number issued by the Department.
2448	2448	2 (10) Personal property sold by a corporation, society,
2449	2449	3 association, foundation, institution, or organization,
2450	2450	4 other than a limited liability company, that is organized
2451	2451	5 and operated as a not-for-profit service enterprise for
2452	2452	6 the benefit of persons 65 years of age or older if the
2453	2453	7 personal property was not purchased by the enterprise for
2454	2454	8 the purpose of resale by the enterprise.
2455	2455	9 (11) Except as otherwise provided in this Section,
2456	2456	10 personal property sold to a governmental body, to a
2457	2457	11 corporation, society, association, foundation, or
2458	2458	12 institution organized and operated exclusively for
2459	2459	13 charitable, religious, or educational purposes, or to a
2460	2460	14 not-for-profit corporation, society, association,
2461	2461	15 foundation, institution, or organization that has no
2462	2462	16 compensated officers or employees and that is organized
2463	2463	17 and operated primarily for the recreation of persons 55
2464	2464	18 years of age or older. A limited liability company may
2465	2465	19 qualify for the exemption under this paragraph only if the
2466	2466	20 limited liability company is organized and operated
2467	2467	21 exclusively for educational purposes. On and after July 1,
2468	2468	22 1987, however, no entity otherwise eligible for this
2469	2469	23 exemption shall make tax-free purchases unless it has an
2470	2470	24 active identification number issued by the Department.
2471	2471	25 (12) (Blank).
2472	2472	26 (12-5) On and after July 1, 2003 and through June 30,
2473	2473
2474	2474
2475	2475
2476	2476
2477	2477
2478	2478	HB5901 - 68 - LRB103 42819 HLH 76068 b
2479	2479
2480	2480
2481	2481	HB5901- 69 -LRB103 42819 HLH 76068 b HB5901 - 69 - LRB103 42819 HLH 76068 b
2482	2482	HB5901 - 69 - LRB103 42819 HLH 76068 b
2483	2483	1 2004, motor vehicles of the second division with a gross
2484	2484	2 vehicle weight in excess of 8,000 pounds that are subject
2485	2485	3 to the commercial distribution fee imposed under Section
2486	2486	4 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2487	2487	5 2004 and through June 30, 2005, the use in this State of
2488	2488	6 motor vehicles of the second division: (i) with a gross
2489	2489	7 vehicle weight rating in excess of 8,000 pounds; (ii) that
2490	2490	8 are subject to the commercial distribution fee imposed
2491	2491	9 under Section 3-815.1 of the Illinois Vehicle Code; and
2492	2492	10 (iii) that are primarily used for commercial purposes.
2493	2493	11 Through June 30, 2005, this exemption applies to repair
2494	2494	12 and replacement parts added after the initial purchase of
2495	2495	13 such a motor vehicle if that motor vehicle is used in a
2496	2496	14 manner that would qualify for the rolling stock exemption
2497	2497	15 otherwise provided for in this Act. For purposes of this
2498	2498	16 paragraph, "used for commercial purposes" means the
2499	2499	17 transportation of persons or property in furtherance of
2500	2500	18 any commercial or industrial enterprise whether for-hire
2501	2501	19 or not.
2502	2502	20 (13) Proceeds from sales to owners, lessors, or
2503	2503	21 shippers of tangible personal property that is utilized by
2504	2504	22 interstate carriers for hire for use as rolling stock
2505	2505	23 moving in interstate commerce and equipment operated by a
2506	2506	24 telecommunications provider, licensed as a common carrier
2507	2507	25 by the Federal Communications Commission, which is
2508	2508	26 permanently installed in or affixed to aircraft moving in
2509	2509
2510	2510
2511	2511
2512	2512
2513	2513
2514	2514	HB5901 - 69 - LRB103 42819 HLH 76068 b
2515	2515
2516	2516
2517	2517	HB5901- 70 -LRB103 42819 HLH 76068 b HB5901 - 70 - LRB103 42819 HLH 76068 b
2518	2518	HB5901 - 70 - LRB103 42819 HLH 76068 b
2519	2519	1 interstate commerce.
2520	2520	2 (14) Machinery and equipment that will be used by the
2521	2521	3 purchaser, or a lessee of the purchaser, primarily in the
2522	2522	4 process of manufacturing or assembling tangible personal
2523	2523	5 property for wholesale or retail sale or lease, whether
2524	2524	6 the sale or lease is made directly by the manufacturer or
2525	2525	7 by some other person, whether the materials used in the
2526	2526	8 process are owned by the manufacturer or some other
2527	2527	9 person, or whether the sale or lease is made apart from or
2528	2528	10 as an incident to the seller's engaging in the service
2529	2529	11 occupation of producing machines, tools, dies, jigs,
2530	2530	12 patterns, gauges, or other similar items of no commercial
2531	2531	13 value on special order for a particular purchaser. The
2532	2532	14 exemption provided by this paragraph (14) does not include
2533	2533	15 machinery and equipment used in (i) the generation of
2534	2534	16 electricity for wholesale or retail sale; (ii) the
2535	2535	17 generation or treatment of natural or artificial gas for
2536	2536	18 wholesale or retail sale that is delivered to customers
2537	2537	19 through pipes, pipelines, or mains; or (iii) the treatment
2538	2538	20 of water for wholesale or retail sale that is delivered to
2539	2539	21 customers through pipes, pipelines, or mains. The
2540	2540	22 provisions of Public Act 98-583 are declaratory of
2541	2541	23 existing law as to the meaning and scope of this
2542	2542	24 exemption. Beginning on July 1, 2017, the exemption
2543	2543	25 provided by this paragraph (14) includes, but is not
2544	2544	26 limited to, graphic arts machinery and equipment, as
2545	2545
2546	2546
2547	2547
2548	2548
2549	2549
2550	2550	HB5901 - 70 - LRB103 42819 HLH 76068 b
2551	2551
2552	2552
2553	2553	HB5901- 71 -LRB103 42819 HLH 76068 b HB5901 - 71 - LRB103 42819 HLH 76068 b
2554	2554	HB5901 - 71 - LRB103 42819 HLH 76068 b
2555	2555	1 defined in paragraph (4) of this Section.
2556	2556	2 (15) Proceeds of mandatory service charges separately
2557	2557	3 stated on customers' bills for purchase and consumption of
2558	2558	4 food and beverages, to the extent that the proceeds of the
2559	2559	5 service charge are in fact turned over as tips or as a
2560	2560	6 substitute for tips to the employees who participate
2561	2561	7 directly in preparing, serving, hosting or cleaning up the
2562	2562	8 food or beverage function with respect to which the
2563	2563	9 service charge is imposed.
2564	2564	10 (16) Tangible personal property sold to a purchaser if
2565	2565	11 the purchaser is exempt from use tax by operation of
2566	2566	12 federal law. This paragraph is exempt from the provisions
2567	2567	13 of Section 2-70.
2568	2568	14 (17) Tangible personal property sold to a common
2569	2569	15 carrier by rail or motor that receives the physical
2570	2570	16 possession of the property in Illinois and that transports
2571	2571	17 the property, or shares with another common carrier in the
2572	2572	18 transportation of the property, out of Illinois on a
2573	2573	19 standard uniform bill of lading showing the seller of the
2574	2574	20 property as the shipper or consignor of the property to a
2575	2575	21 destination outside Illinois, for use outside Illinois.
2576	2576	22 (18) Legal tender, currency, medallions, or gold or
2577	2577	23 silver coinage issued by the State of Illinois, the
2578	2578	24 government of the United States of America, or the
2579	2579	25 government of any foreign country, and bullion.
2580	2580	26 (19) Until July 1, 2003, oil field exploration,
2581	2581
2582	2582
2583	2583
2584	2584
2585	2585
2586	2586	HB5901 - 71 - LRB103 42819 HLH 76068 b
2587	2587
2588	2588
2589	2589	HB5901- 72 -LRB103 42819 HLH 76068 b HB5901 - 72 - LRB103 42819 HLH 76068 b
2590	2590	HB5901 - 72 - LRB103 42819 HLH 76068 b
2591	2591	1 drilling, and production equipment, including (i) rigs and
2592	2592	2 parts of rigs, rotary rigs, cable tool rigs, and workover
2593	2593	3 rigs, (ii) pipe and tubular goods, including casing and
2594	2594	4 drill strings, (iii) pumps and pump-jack units, (iv)
2595	2595	5 storage tanks and flow lines, (v) any individual
2596	2596	6 replacement part for oil field exploration, drilling, and
2597	2597	7 production equipment, and (vi) machinery and equipment
2598	2598	8 purchased for lease; but excluding motor vehicles required
2599	2599	9 to be registered under the Illinois Vehicle Code.
2600	2600	10 (20) Photoprocessing machinery and equipment,
2601	2601	11 including repair and replacement parts, both new and used,
2602	2602	12 including that manufactured on special order, certified by
2603	2603	13 the purchaser to be used primarily for photoprocessing,
2604	2604	14 and including photoprocessing machinery and equipment
2605	2605	15 purchased for lease.
2606	2606	16 (21) Until July 1, 2028, coal and aggregate
2607	2607	17 exploration, mining, off-highway hauling, processing,
2608	2608	18 maintenance, and reclamation equipment, including
2609	2609	19 replacement parts and equipment, and including equipment
2610	2610	20 purchased for lease, but excluding motor vehicles required
2611	2611	21 to be registered under the Illinois Vehicle Code. The
2612	2612	22 changes made to this Section by Public Act 97-767 apply on
2613	2613	23 and after July 1, 2003, but no claim for credit or refund
2614	2614	24 is allowed on or after August 16, 2013 (the effective date
2615	2615	25 of Public Act 98-456) for such taxes paid during the
2616	2616	26 period beginning July 1, 2003 and ending on August 16,
2617	2617
2618	2618
2619	2619
2620	2620
2621	2621
2622	2622	HB5901 - 72 - LRB103 42819 HLH 76068 b
2623	2623
2624	2624
2625	2625	HB5901- 73 -LRB103 42819 HLH 76068 b HB5901 - 73 - LRB103 42819 HLH 76068 b
2626	2626	HB5901 - 73 - LRB103 42819 HLH 76068 b
2627	2627	1 2013 (the effective date of Public Act 98-456).
2628	2628	2 (22) Until June 30, 2013, fuel and petroleum products
2629	2629	3 sold to or used by an air carrier, certified by the carrier
2630	2630	4 to be used for consumption, shipment, or storage in the
2631	2631	5 conduct of its business as an air common carrier, for a
2632	2632	6 flight destined for or returning from a location or
2633	2633	7 locations outside the United States without regard to
2634	2634	8 previous or subsequent domestic stopovers.
2635	2635	9 Beginning July 1, 2013, fuel and petroleum products
2636	2636	10 sold to or used by an air carrier, certified by the carrier
2637	2637	11 to be used for consumption, shipment, or storage in the
2638	2638	12 conduct of its business as an air common carrier, for a
2639	2639	13 flight that (i) is engaged in foreign trade or is engaged
2640	2640	14 in trade between the United States and any of its
2641	2641	15 possessions and (ii) transports at least one individual or
2642	2642	16 package for hire from the city of origination to the city
2643	2643	17 of final destination on the same aircraft, without regard
2644	2644	18 to a change in the flight number of that aircraft.
2645	2645	19 (23) A transaction in which the purchase order is
2646	2646	20 received by a florist who is located outside Illinois, but
2647	2647	21 who has a florist located in Illinois deliver the property
2648	2648	22 to the purchaser or the purchaser's donee in Illinois.
2649	2649	23 (24) Fuel consumed or used in the operation of ships,
2650	2650	24 barges, or vessels that are used primarily in or for the
2651	2651	25 transportation of property or the conveyance of persons
2652	2652	26 for hire on rivers bordering on this State if the fuel is
2653	2653
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658	HB5901 - 73 - LRB103 42819 HLH 76068 b
2659	2659
2660	2660
2661	2661	HB5901- 74 -LRB103 42819 HLH 76068 b HB5901 - 74 - LRB103 42819 HLH 76068 b
2662	2662	HB5901 - 74 - LRB103 42819 HLH 76068 b
2663	2663	1 delivered by the seller to the purchaser's barge, ship, or
2664	2664	2 vessel while it is afloat upon that bordering river.
2665	2665	3 (25) Except as provided in item (25-5) of this
2666	2666	4 Section, a motor vehicle sold in this State to a
2667	2667	5 nonresident even though the motor vehicle is delivered to
2668	2668	6 the nonresident in this State, if the motor vehicle is not
2669	2669	7 to be titled in this State, and if a drive-away permit is
2670	2670	8 issued to the motor vehicle as provided in Section 3-603
2671	2671	9 of the Illinois Vehicle Code or if the nonresident
2672	2672	10 purchaser has vehicle registration plates to transfer to
2673	2673	11 the motor vehicle upon returning to his or her home state.
2674	2674	12 The issuance of the drive-away permit or having the
2675	2675	13 out-of-state registration plates to be transferred is
2676	2676	14 prima facie evidence that the motor vehicle will not be
2677	2677	15 titled in this State.
2678	2678	16 (25-5) The exemption under item (25) does not apply if
2679	2679	17 the state in which the motor vehicle will be titled does
2680	2680	18 not allow a reciprocal exemption for a motor vehicle sold
2681	2681	19 and delivered in that state to an Illinois resident but
2682	2682	20 titled in Illinois. The tax collected under this Act on
2683	2683	21 the sale of a motor vehicle in this State to a resident of
2684	2684	22 another state that does not allow a reciprocal exemption
2685	2685	23 shall be imposed at a rate equal to the state's rate of tax
2686	2686	24 on taxable property in the state in which the purchaser is
2687	2687	25 a resident, except that the tax shall not exceed the tax
2688	2688	26 that would otherwise be imposed under this Act. At the
2689	2689
2690	2690
2691	2691
2692	2692
2693	2693
2694	2694	HB5901 - 74 - LRB103 42819 HLH 76068 b
2695	2695
2696	2696
2697	2697	HB5901- 75 -LRB103 42819 HLH 76068 b HB5901 - 75 - LRB103 42819 HLH 76068 b
2698	2698	HB5901 - 75 - LRB103 42819 HLH 76068 b
2699	2699	1 time of the sale, the purchaser shall execute a statement,
2700	2700	2 signed under penalty of perjury, of his or her intent to
2701	2701	3 title the vehicle in the state in which the purchaser is a
2702	2702	4 resident within 30 days after the sale and of the fact of
2703	2703	5 the payment to the State of Illinois of tax in an amount
2704	2704	6 equivalent to the state's rate of tax on taxable property
2705	2705	7 in his or her state of residence and shall submit the
2706	2706	8 statement to the appropriate tax collection agency in his
2707	2707	9 or her state of residence. In addition, the retailer must
2708	2708	10 retain a signed copy of the statement in his or her
2709	2709	11 records. Nothing in this item shall be construed to
2710	2710	12 require the removal of the vehicle from this state
2711	2711	13 following the filing of an intent to title the vehicle in
2712	2712	14 the purchaser's state of residence if the purchaser titles
2713	2713	15 the vehicle in his or her state of residence within 30 days
2714	2714	16 after the date of sale. The tax collected under this Act in
2715	2715	17 accordance with this item (25-5) shall be proportionately
2716	2716	18 distributed as if the tax were collected at the 6.25%
2717	2717	19 general rate imposed under this Act.
2718	2718	20 (25-7) Beginning on July 1, 2007, no tax is imposed
2719	2719	21 under this Act on the sale of an aircraft, as defined in
2720	2720	22 Section 3 of the Illinois Aeronautics Act, if all of the
2721	2721	23 following conditions are met:
2722	2722	24 (1) the aircraft leaves this State within 15 days
2723	2723	25 after the later of either the issuance of the final
2724	2724	26 billing for the sale of the aircraft, or the
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730	HB5901 - 75 - LRB103 42819 HLH 76068 b
2731	2731
2732	2732
2733	2733	HB5901- 76 -LRB103 42819 HLH 76068 b HB5901 - 76 - LRB103 42819 HLH 76068 b
2734	2734	HB5901 - 76 - LRB103 42819 HLH 76068 b
2735	2735	1 authorized approval for return to service, completion
2736	2736	2 of the maintenance record entry, and completion of the
2737	2737	3 test flight and ground test for inspection, as
2738	2738	4 required by 14 CFR 91.407;
2739	2739	5 (2) the aircraft is not based or registered in
2740	2740	6 this State after the sale of the aircraft; and
2741	2741	7 (3) the seller retains in his or her books and
2742	2742	8 records and provides to the Department a signed and
2743	2743	9 dated certification from the purchaser, on a form
2744	2744	10 prescribed by the Department, certifying that the
2745	2745	11 requirements of this item (25-7) are met. The
2746	2746	12 certificate must also include the name and address of
2747	2747	13 the purchaser, the address of the location where the
2748	2748	14 aircraft is to be titled or registered, the address of
2749	2749	15 the primary physical location of the aircraft, and
2750	2750	16 other information that the Department may reasonably
2751	2751	17 require.
2752	2752	18 For purposes of this item (25-7):
2753	2753	19 "Based in this State" means hangared, stored, or
2754	2754	20 otherwise used, excluding post-sale customizations as
2755	2755	21 defined in this Section, for 10 or more days in each
2756	2756	22 12-month period immediately following the date of the sale
2757	2757	23 of the aircraft.
2758	2758	24 "Registered in this State" means an aircraft
2759	2759	25 registered with the Department of Transportation,
2760	2760	26 Aeronautics Division, or titled or registered with the
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766	HB5901 - 76 - LRB103 42819 HLH 76068 b
2767	2767
2768	2768
2769	2769	HB5901- 77 -LRB103 42819 HLH 76068 b HB5901 - 77 - LRB103 42819 HLH 76068 b
2770	2770	HB5901 - 77 - LRB103 42819 HLH 76068 b
2771	2771	1 Federal Aviation Administration to an address located in
2772	2772	2 this State.
2773	2773	3 This paragraph (25-7) is exempt from the provisions of
2774	2774	4 Section 2-70.
2775	2775	5 (26) Semen used for artificial insemination of
2776	2776	6 livestock for direct agricultural production.
2777	2777	7 (27) Horses, or interests in horses, registered with
2778	2778	8 and meeting the requirements of any of the Arabian Horse
2779	2779	9 Club Registry of America, Appaloosa Horse Club, American
2780	2780	10 Quarter Horse Association, United States Trotting
2781	2781	11 Association, or Jockey Club, as appropriate, used for
2782	2782	12 purposes of breeding or racing for prizes. This item (27)
2783	2783	13 is exempt from the provisions of Section 2-70, and the
2784	2784	14 exemption provided for under this item (27) applies for
2785	2785	15 all periods beginning May 30, 1995, but no claim for
2786	2786	16 credit or refund is allowed on or after January 1, 2008
2787	2787	17 (the effective date of Public Act 95-88) for such taxes
2788	2788	18 paid during the period beginning May 30, 2000 and ending
2789	2789	19 on January 1, 2008 (the effective date of Public Act
2790	2790	20 95-88).
2791	2791	21 (28) Computers and communications equipment utilized
2792	2792	22 for any hospital purpose and equipment used in the
2793	2793	23 diagnosis, analysis, or treatment of hospital patients
2794	2794	24 sold to a lessor who leases the equipment, under a lease of
2795	2795	25 one year or longer executed or in effect at the time of the
2796	2796	26 purchase, to a hospital that has been issued an active tax
2797	2797
2798	2798
2799	2799
2800	2800
2801	2801
2802	2802	HB5901 - 77 - LRB103 42819 HLH 76068 b
2803	2803
2804	2804
2805	2805	HB5901- 78 -LRB103 42819 HLH 76068 b HB5901 - 78 - LRB103 42819 HLH 76068 b
2806	2806	HB5901 - 78 - LRB103 42819 HLH 76068 b
2807	2807	1 exemption identification number by the Department under
2808	2808	2 Section 1g of this Act.
2809	2809	3 (29) Personal property sold to a lessor who leases the
2810	2810	4 property, under a lease of one year or longer executed or
2811	2811	5 in effect at the time of the purchase, to a governmental
2812	2812	6 body that has been issued an active tax exemption
2813	2813	7 identification number by the Department under Section 1g
2814	2814	8 of this Act.
2815	2815	9 (30) Beginning with taxable years ending on or after
2816	2816	10 December 31, 1995 and ending with taxable years ending on
2817	2817	11 or before December 31, 2004, personal property that is
2818	2818	12 donated for disaster relief to be used in a State or
2819	2819	13 federally declared disaster area in Illinois or bordering
2820	2820	14 Illinois by a manufacturer or retailer that is registered
2821	2821	15 in this State to a corporation, society, association,
2822	2822	16 foundation, or institution that has been issued a sales
2823	2823	17 tax exemption identification number by the Department that
2824	2824	18 assists victims of the disaster who reside within the
2825	2825	19 declared disaster area.
2826	2826	20 (31) Beginning with taxable years ending on or after
2827	2827	21 December 31, 1995 and ending with taxable years ending on
2828	2828	22 or before December 31, 2004, personal property that is
2829	2829	23 used in the performance of infrastructure repairs in this
2830	2830	24 State, including, but not limited to, municipal roads and
2831	2831	25 streets, access roads, bridges, sidewalks, waste disposal
2832	2832	26 systems, water and sewer line extensions, water
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837
2838	2838	HB5901 - 78 - LRB103 42819 HLH 76068 b
2839	2839
2840	2840
2841	2841	HB5901- 79 -LRB103 42819 HLH 76068 b HB5901 - 79 - LRB103 42819 HLH 76068 b
2842	2842	HB5901 - 79 - LRB103 42819 HLH 76068 b
2843	2843	1 distribution and purification facilities, storm water
2844	2844	2 drainage and retention facilities, and sewage treatment
2845	2845	3 facilities, resulting from a State or federally declared
2846	2846	4 disaster in Illinois or bordering Illinois when such
2847	2847	5 repairs are initiated on facilities located in the
2848	2848	6 declared disaster area within 6 months after the disaster.
2849	2849	7 (32) Beginning July 1, 1999, game or game birds sold
2850	2850	8 at a "game breeding and hunting preserve area" as that
2851	2851	9 term is used in the Wildlife Code. This paragraph is
2852	2852	10 exempt from the provisions of Section 2-70.
2853	2853	11 (33) A motor vehicle, as that term is defined in
2854	2854	12 Section 1-146 of the Illinois Vehicle Code, that is
2855	2855	13 donated to a corporation, limited liability company,
2856	2856	14 society, association, foundation, or institution that is
2857	2857	15 determined by the Department to be organized and operated
2858	2858	16 exclusively for educational purposes. For purposes of this
2859	2859	17 exemption, "a corporation, limited liability company,
2860	2860	18 society, association, foundation, or institution organized
2861	2861	19 and operated exclusively for educational purposes" means
2862	2862	20 all tax-supported public schools, private schools that
2863	2863	21 offer systematic instruction in useful branches of
2864	2864	22 learning by methods common to public schools and that
2865	2865	23 compare favorably in their scope and intensity with the
2866	2866	24 course of study presented in tax-supported schools, and
2867	2867	25 vocational or technical schools or institutes organized
2868	2868	26 and operated exclusively to provide a course of study of
2869	2869
2870	2870
2871	2871
2872	2872
2873	2873
2874	2874	HB5901 - 79 - LRB103 42819 HLH 76068 b
2875	2875
2876	2876
2877	2877	HB5901- 80 -LRB103 42819 HLH 76068 b HB5901 - 80 - LRB103 42819 HLH 76068 b
2878	2878	HB5901 - 80 - LRB103 42819 HLH 76068 b
2879	2879	1 not less than 6 weeks duration and designed to prepare
2880	2880	2 individuals to follow a trade or to pursue a manual,
2881	2881	3 technical, mechanical, industrial, business, or commercial
2882	2882	4 occupation.
2883	2883	5 (34) Beginning January 1, 2000, personal property,
2884	2884	6 including food, purchased through fundraising events for
2885	2885	7 the benefit of a public or private elementary or secondary
2886	2886	8 school, a group of those schools, or one or more school
2887	2887	9 districts if the events are sponsored by an entity
2888	2888	10 recognized by the school district that consists primarily
2889	2889	11 of volunteers and includes parents and teachers of the
2890	2890	12 school children. This paragraph does not apply to
2891	2891	13 fundraising events (i) for the benefit of private home
2892	2892	14 instruction or (ii) for which the fundraising entity
2893	2893	15 purchases the personal property sold at the events from
2894	2894	16 another individual or entity that sold the property for
2895	2895	17 the purpose of resale by the fundraising entity and that
2896	2896	18 profits from the sale to the fundraising entity. This
2897	2897	19 paragraph is exempt from the provisions of Section 2-70.
2898	2898	20 (35) Beginning January 1, 2000 and through December
2899	2899	21 31, 2001, new or used automatic vending machines that
2900	2900	22 prepare and serve hot food and beverages, including
2901	2901	23 coffee, soup, and other items, and replacement parts for
2902	2902	24 these machines. Beginning January 1, 2002 and through June
2903	2903	25 30, 2003, machines and parts for machines used in
2904	2904	26 commercial, coin-operated amusement and vending business
2905	2905
2906	2906
2907	2907
2908	2908
2909	2909
2910	2910	HB5901 - 80 - LRB103 42819 HLH 76068 b
2911	2911
2912	2912
2913	2913	HB5901- 81 -LRB103 42819 HLH 76068 b HB5901 - 81 - LRB103 42819 HLH 76068 b
2914	2914	HB5901 - 81 - LRB103 42819 HLH 76068 b
2915	2915	1 if a use or occupation tax is paid on the gross receipts
2916	2916	2 derived from the use of the commercial, coin-operated
2917	2917	3 amusement and vending machines. This paragraph is exempt
2918	2918	4 from the provisions of Section 2-70.
2919	2919	5 (35-5) Beginning August 23, 2001 and through June 30,
2920	2920	6 2016, food for human consumption that is to be consumed
2921	2921	7 off the premises where it is sold (other than alcoholic
2922	2922	8 beverages, soft drinks, and food that has been prepared
2923	2923	9 for immediate consumption) and prescription and
2924	2924	10 nonprescription medicines, drugs, medical appliances, and
2925	2925	11 insulin, urine testing materials, syringes, and needles
2926	2926	12 used by diabetics, for human use, when purchased for use
2927	2927	13 by a person receiving medical assistance under Article V
2928	2928	14 of the Illinois Public Aid Code who resides in a licensed
2929	2929	15 long-term care facility, as defined in the Nursing Home
2930	2930	16 Care Act, or a licensed facility as defined in the ID/DD
2931	2931	17 Community Care Act, the MC/DD Act, or the Specialized
2932	2932	18 Mental Health Rehabilitation Act of 2013.
2933	2933	19 (36) Beginning August 2, 2001, computers and
2934	2934	20 communications equipment utilized for any hospital purpose
2935	2935	21 and equipment used in the diagnosis, analysis, or
2936	2936	22 treatment of hospital patients sold to a lessor who leases
2937	2937	23 the equipment, under a lease of one year or longer
2938	2938	24 executed or in effect at the time of the purchase, to a
2939	2939	25 hospital that has been issued an active tax exemption
2940	2940	26 identification number by the Department under Section 1g
2941	2941
2942	2942
2943	2943
2944	2944
2945	2945
2946	2946	HB5901 - 81 - LRB103 42819 HLH 76068 b
2947	2947
2948	2948
2949	2949	HB5901- 82 -LRB103 42819 HLH 76068 b HB5901 - 82 - LRB103 42819 HLH 76068 b
2950	2950	HB5901 - 82 - LRB103 42819 HLH 76068 b
2951	2951	1 of this Act. This paragraph is exempt from the provisions
2952	2952	2 of Section 2-70.
2953	2953	3 (37) Beginning August 2, 2001, personal property sold
2954	2954	4 to a lessor who leases the property, under a lease of one
2955	2955	5 year or longer executed or in effect at the time of the
2956	2956	6 purchase, to a governmental body that has been issued an
2957	2957	7 active tax exemption identification number by the
2958	2958	8 Department under Section 1g of this Act. This paragraph is
2959	2959	9 exempt from the provisions of Section 2-70.
2960	2960	10 (38) Beginning on January 1, 2002 and through June 30,
2961	2961	11 2016, tangible personal property purchased from an
2962	2962	12 Illinois retailer by a taxpayer engaged in centralized
2963	2963	13 purchasing activities in Illinois who will, upon receipt
2964	2964	14 of the property in Illinois, temporarily store the
2965	2965	15 property in Illinois (i) for the purpose of subsequently
2966	2966	16 transporting it outside this State for use or consumption
2967	2967	17 thereafter solely outside this State or (ii) for the
2968	2968	18 purpose of being processed, fabricated, or manufactured
2969	2969	19 into, attached to, or incorporated into other tangible
2970	2970	20 personal property to be transported outside this State and
2971	2971	21 thereafter used or consumed solely outside this State. The
2972	2972	22 Director of Revenue shall, pursuant to rules adopted in
2973	2973	23 accordance with the Illinois Administrative Procedure Act,
2974	2974	24 issue a permit to any taxpayer in good standing with the
2975	2975	25 Department who is eligible for the exemption under this
2976	2976	26 paragraph (38). The permit issued under this paragraph
2977	2977
2978	2978
2979	2979
2980	2980
2981	2981
2982	2982	HB5901 - 82 - LRB103 42819 HLH 76068 b
2983	2983
2984	2984
2985	2985	HB5901- 83 -LRB103 42819 HLH 76068 b HB5901 - 83 - LRB103 42819 HLH 76068 b
2986	2986	HB5901 - 83 - LRB103 42819 HLH 76068 b
2987	2987	1 (38) shall authorize the holder, to the extent and in the
2988	2988	2 manner specified in the rules adopted under this Act, to
2989	2989	3 purchase tangible personal property from a retailer exempt
2990	2990	4 from the taxes imposed by this Act. Taxpayers shall
2991	2991	5 maintain all necessary books and records to substantiate
2992	2992	6 the use and consumption of all such tangible personal
2993	2993	7 property outside of the State of Illinois.
2994	2994	8 (39) Beginning January 1, 2008, tangible personal
2995	2995	9 property used in the construction or maintenance of a
2996	2996	10 community water supply, as defined under Section 3.145 of
2997	2997	11 the Environmental Protection Act, that is operated by a
2998	2998	12 not-for-profit corporation that holds a valid water supply
2999	2999	13 permit issued under Title IV of the Environmental
3000	3000	14 Protection Act. This paragraph is exempt from the
3001	3001	15 provisions of Section 2-70.
3002	3002	16 (40) Beginning January 1, 2010 and continuing through
3003	3003	17 December 31, 2029, materials, parts, equipment,
3004	3004	18 components, and furnishings incorporated into or upon an
3005	3005	19 aircraft as part of the modification, refurbishment,
3006	3006	20 completion, replacement, repair, or maintenance of the
3007	3007	21 aircraft. This exemption includes consumable supplies used
3008	3008	22 in the modification, refurbishment, completion,
3009	3009	23 replacement, repair, and maintenance of aircraft. However,
3010	3010	24 until January 1, 2024, this exemption excludes any
3011	3011	25 materials, parts, equipment, components, and consumable
3012	3012	26 supplies used in the modification, replacement, repair,
3013	3013
3014	3014
3015	3015
3016	3016
3017	3017
3018	3018	HB5901 - 83 - LRB103 42819 HLH 76068 b
3019	3019
3020	3020
3021	3021	HB5901- 84 -LRB103 42819 HLH 76068 b HB5901 - 84 - LRB103 42819 HLH 76068 b
3022	3022	HB5901 - 84 - LRB103 42819 HLH 76068 b
3023	3023	1 and maintenance of aircraft engines or power plants,
3024	3024	2 whether such engines or power plants are installed or
3025	3025	3 uninstalled upon any such aircraft. "Consumable supplies"
3026	3026	4 include, but are not limited to, adhesive, tape,
3027	3027	5 sandpaper, general purpose lubricants, cleaning solution,
3028	3028	6 latex gloves, and protective films.
3029	3029	7 Beginning January 1, 2010 and continuing through
3030	3030	8 December 31, 2023, this exemption applies only to the sale
3031	3031	9 of qualifying tangible personal property to persons who
3032	3032	10 modify, refurbish, complete, replace, or maintain an
3033	3033	11 aircraft and who (i) hold an Air Agency Certificate and
3034	3034	12 are empowered to operate an approved repair station by the
3035	3035	13 Federal Aviation Administration, (ii) have a Class IV
3036	3036	14 Rating, and (iii) conduct operations in accordance with
3037	3037	15 Part 145 of the Federal Aviation Regulations. The
3038	3038	16 exemption does not include aircraft operated by a
3039	3039	17 commercial air carrier providing scheduled passenger air
3040	3040	18 service pursuant to authority issued under Part 121 or
3041	3041	19 Part 129 of the Federal Aviation Regulations. From January
3042	3042	20 1, 2024 through December 31, 2029, this exemption applies
3043	3043	21 only to the use of qualifying tangible personal property
3044	3044	22 by: (A) persons who modify, refurbish, complete, repair,
3045	3045	23 replace, or maintain aircraft and who (i) hold an Air
3046	3046	24 Agency Certificate and are empowered to operate an
3047	3047	25 approved repair station by the Federal Aviation
3048	3048	26 Administration, (ii) have a Class IV Rating, and (iii)
3049	3049
3050	3050
3051	3051
3052	3052
3053	3053
3054	3054	HB5901 - 84 - LRB103 42819 HLH 76068 b
3055	3055
3056	3056
3057	3057	HB5901- 85 -LRB103 42819 HLH 76068 b HB5901 - 85 - LRB103 42819 HLH 76068 b
3058	3058	HB5901 - 85 - LRB103 42819 HLH 76068 b
3059	3059	1 conduct operations in accordance with Part 145 of the
3060	3060	2 Federal Aviation Regulations; and (B) persons who engage
3061	3061	3 in the modification, replacement, repair, and maintenance
3062	3062	4 of aircraft engines or power plants without regard to
3063	3063	5 whether or not those persons meet the qualifications of
3064	3064	6 item (A).
3065	3065	7 The changes made to this paragraph (40) by Public Act
3066	3066	8 98-534 are declarative of existing law. It is the intent
3067	3067	9 of the General Assembly that the exemption under this
3068	3068	10 paragraph (40) applies continuously from January 1, 2010
3069	3069	11 through December 31, 2024; however, no claim for credit or
3070	3070	12 refund is allowed for taxes paid as a result of the
3071	3071	13 disallowance of this exemption on or after January 1, 2015
3072	3072	14 and prior to February 5, 2020 (the effective date of
3073	3073	15 Public Act 101-629).
3074	3074	16 (41) Tangible personal property sold to a
3075	3075	17 public-facilities corporation, as described in Section
3076	3076	18 11-65-10 of the Illinois Municipal Code, for purposes of
3077	3077	19 constructing or furnishing a municipal convention hall,
3078	3078	20 but only if the legal title to the municipal convention
3079	3079	21 hall is transferred to the municipality without any
3080	3080	22 further consideration by or on behalf of the municipality
3081	3081	23 at the time of the completion of the municipal convention
3082	3082	24 hall or upon the retirement or redemption of any bonds or
3083	3083	25 other debt instruments issued by the public-facilities
3084	3084	26 corporation in connection with the development of the
3085	3085
3086	3086
3087	3087
3088	3088
3089	3089
3090	3090	HB5901 - 85 - LRB103 42819 HLH 76068 b
3091	3091
3092	3092
3093	3093	HB5901- 86 -LRB103 42819 HLH 76068 b HB5901 - 86 - LRB103 42819 HLH 76068 b
3094	3094	HB5901 - 86 - LRB103 42819 HLH 76068 b
3095	3095	1 municipal convention hall. This exemption includes
3096	3096	2 existing public-facilities corporations as provided in
3097	3097	3 Section 11-65-25 of the Illinois Municipal Code. This
3098	3098	4 paragraph is exempt from the provisions of Section 2-70.
3099	3099	5 (42) Beginning January 1, 2017 and through December
3100	3100	6 31, 2026, menstrual pads, tampons, and menstrual cups.
3101	3101	7 (43) Merchandise that is subject to the Rental
3102	3102	8 Purchase Agreement Occupation and Use Tax. The purchaser
3103	3103	9 must certify that the item is purchased to be rented
3104	3104	10 subject to a rental-purchase rental purchase agreement, as
3105	3105	11 defined in the Rental-Purchase Rental Purchase Agreement
3106	3106	12 Act, and provide proof of registration under the Rental
3107	3107	13 Purchase Agreement Occupation and Use Tax Act. This
3108	3108	14 paragraph is exempt from the provisions of Section 2-70.
3109	3109	15 (44) Qualified tangible personal property used in the
3110	3110	16 construction or operation of a data center that has been
3111	3111	17 granted a certificate of exemption by the Department of
3112	3112	18 Commerce and Economic Opportunity, whether that tangible
3113	3113	19 personal property is purchased by the owner, operator, or
3114	3114	20 tenant of the data center or by a contractor or
3115	3115	21 subcontractor of the owner, operator, or tenant. Data
3116	3116	22 centers that would have qualified for a certificate of
3117	3117	23 exemption prior to January 1, 2020 had Public Act 101-31
3118	3118	24 been in effect, may apply for and obtain an exemption for
3119	3119	25 subsequent purchases of computer equipment or enabling
3120	3120	26 software purchased or leased to upgrade, supplement, or
3121	3121
3122	3122
3123	3123
3124	3124
3125	3125
3126	3126	HB5901 - 86 - LRB103 42819 HLH 76068 b
3127	3127
3128	3128
3129	3129	HB5901- 87 -LRB103 42819 HLH 76068 b HB5901 - 87 - LRB103 42819 HLH 76068 b
3130	3130	HB5901 - 87 - LRB103 42819 HLH 76068 b
3131	3131	1 replace computer equipment or enabling software purchased
3132	3132	2 or leased in the original investment that would have
3133	3133	3 qualified.
3134	3134	4 The Department of Commerce and Economic Opportunity
3135	3135	5 shall grant a certificate of exemption under this item
3136	3136	6 (44) to qualified data centers as defined by Section
3137	3137	7 605-1025 of the Department of Commerce and Economic
3138	3138	8 Opportunity Law of the Civil Administrative Code of
3139	3139	9 Illinois.
3140	3140	10 For the purposes of this item (44):
3141	3141	11 "Data center" means a building or a series of
3142	3142	12 buildings rehabilitated or constructed to house
3143	3143	13 working servers in one physical location or multiple
3144	3144	14 sites within the State of Illinois.
3145	3145	15 "Qualified tangible personal property" means:
3146	3146	16 electrical systems and equipment; climate control and
3147	3147	17 chilling equipment and systems; mechanical systems and
3148	3148	18 equipment; monitoring and secure systems; emergency
3149	3149	19 generators; hardware; computers; servers; data storage
3150	3150	20 devices; network connectivity equipment; racks;
3151	3151	21 cabinets; telecommunications cabling infrastructure;
3152	3152	22 raised floor systems; peripheral components or
3153	3153	23 systems; software; mechanical, electrical, or plumbing
3154	3154	24 systems; battery systems; cooling systems and towers;
3155	3155	25 temperature control systems; other cabling; and other
3156	3156	26 data center infrastructure equipment and systems
3157	3157
3158	3158
3159	3159
3160	3160
3161	3161
3162	3162	HB5901 - 87 - LRB103 42819 HLH 76068 b
3163	3163
3164	3164
3165	3165	HB5901- 88 -LRB103 42819 HLH 76068 b HB5901 - 88 - LRB103 42819 HLH 76068 b
3166	3166	HB5901 - 88 - LRB103 42819 HLH 76068 b
3167	3167	1 necessary to operate qualified tangible personal
3168	3168	2 property, including fixtures; and component parts of
3169	3169	3 any of the foregoing, including installation,
3170	3170	4 maintenance, repair, refurbishment, and replacement of
3171	3171	5 qualified tangible personal property to generate,
3172	3172	6 transform, transmit, distribute, or manage electricity
3173	3173	7 necessary to operate qualified tangible personal
3174	3174	8 property; and all other tangible personal property
3175	3175	9 that is essential to the operations of a computer data
3176	3176	10 center. The term "qualified tangible personal
3177	3177	11 property" also includes building materials physically
3178	3178	12 incorporated into the qualifying data center. To
3179	3179	13 document the exemption allowed under this Section, the
3180	3180	14 retailer must obtain from the purchaser a copy of the
3181	3181	15 certificate of eligibility issued by the Department of
3182	3182	16 Commerce and Economic Opportunity.
3183	3183	17 This item (44) is exempt from the provisions of
3184	3184	18 Section 2-70.
3185	3185	19 (45) Beginning January 1, 2020 and through December
3186	3186	20 31, 2020, sales of tangible personal property made by a
3187	3187	21 marketplace seller over a marketplace for which tax is due
3188	3188	22 under this Act but for which use tax has been collected and
3189	3189	23 remitted to the Department by a marketplace facilitator
3190	3190	24 under Section 2d of the Use Tax Act are exempt from tax
3191	3191	25 under this Act. A marketplace seller claiming this
3192	3192	26 exemption shall maintain books and records demonstrating
3193	3193
3194	3194
3195	3195
3196	3196
3197	3197
3198	3198	HB5901 - 88 - LRB103 42819 HLH 76068 b
3199	3199
3200	3200
3201	3201	HB5901- 89 -LRB103 42819 HLH 76068 b HB5901 - 89 - LRB103 42819 HLH 76068 b
3202	3202	HB5901 - 89 - LRB103 42819 HLH 76068 b
3203	3203	1 that the use tax on such sales has been collected and
3204	3204	2 remitted by a marketplace facilitator. Marketplace sellers
3205	3205	3 that have properly remitted tax under this Act on such
3206	3206	4 sales may file a claim for credit as provided in Section 6
3207	3207	5 of this Act. No claim is allowed, however, for such taxes
3208	3208	6 for which a credit or refund has been issued to the
3209	3209	7 marketplace facilitator under the Use Tax Act, or for
3210	3210	8 which the marketplace facilitator has filed a claim for
3211	3211	9 credit or refund under the Use Tax Act.
3212	3212	10 (46) Beginning July 1, 2022, breast pumps, breast pump
3213	3213	11 collection and storage supplies, and breast pump kits.
3214	3214	12 This item (46) is exempt from the provisions of Section
3215	3215	13 2-70. As used in this item (46):
3216	3216	14 "Breast pump" means an electrically controlled or
3217	3217	15 manually controlled pump device designed or marketed to be
3218	3218	16 used to express milk from a human breast during lactation,
3219	3219	17 including the pump device and any battery, AC adapter, or
3220	3220	18 other power supply unit that is used to power the pump
3221	3221	19 device and is packaged and sold with the pump device at the
3222	3222	20 time of sale.
3223	3223	21 "Breast pump collection and storage supplies" means
3224	3224	22 items of tangible personal property designed or marketed
3225	3225	23 to be used in conjunction with a breast pump to collect
3226	3226	24 milk expressed from a human breast and to store collected
3227	3227	25 milk until it is ready for consumption.
3228	3228	26 "Breast pump collection and storage supplies"
3229	3229
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234	HB5901 - 89 - LRB103 42819 HLH 76068 b
3235	3235
3236	3236
3237	3237	HB5901- 90 -LRB103 42819 HLH 76068 b HB5901 - 90 - LRB103 42819 HLH 76068 b
3238	3238	HB5901 - 90 - LRB103 42819 HLH 76068 b
3239	3239	1 includes, but is not limited to: breast shields and breast
3240	3240	2 shield connectors; breast pump tubes and tubing adapters;
3241	3241	3 breast pump valves and membranes; backflow protectors and
3242	3242	4 backflow protector adaptors; bottles and bottle caps
3243	3243	5 specific to the operation of the breast pump; and breast
3244	3244	6 milk storage bags.
3245	3245	7 "Breast pump collection and storage supplies" does not
3246	3246	8 include: (1) bottles and bottle caps not specific to the
3247	3247	9 operation of the breast pump; (2) breast pump travel bags
3248	3248	10 and other similar carrying accessories, including ice
3249	3249	11 packs, labels, and other similar products; (3) breast pump
3250	3250	12 cleaning supplies; (4) nursing bras, bra pads, breast
3251	3251	13 shells, and other similar products; and (5) creams,
3252	3252	14 ointments, and other similar products that relieve
3253	3253	15 breastfeeding-related symptoms or conditions of the
3254	3254	16 breasts or nipples, unless sold as part of a breast pump
3255	3255	17 kit that is pre-packaged by the breast pump manufacturer
3256	3256	18 or distributor.
3257	3257	19 "Breast pump kit" means a kit that: (1) contains no
3258	3258	20 more than a breast pump, breast pump collection and
3259	3259	21 storage supplies, a rechargeable battery for operating the
3260	3260	22 breast pump, a breastmilk cooler, bottle stands, ice
3261	3261	23 packs, and a breast pump carrying case; and (2) is
3262	3262	24 pre-packaged as a breast pump kit by the breast pump
3263	3263	25 manufacturer or distributor.
3264	3264	26 (47) Tangible personal property sold by or on behalf
3265	3265
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270	HB5901 - 90 - LRB103 42819 HLH 76068 b
3271	3271
3272	3272
3273	3273	HB5901- 91 -LRB103 42819 HLH 76068 b HB5901 - 91 - LRB103 42819 HLH 76068 b
3274	3274	HB5901 - 91 - LRB103 42819 HLH 76068 b
3275	3275	1 of the State Treasurer pursuant to the Revised Uniform
3276	3276	2 Unclaimed Property Act. This item (47) is exempt from the
3277	3277	3 provisions of Section 2-70.
3278	3278	4 (48) Beginning on January 1, 2024, tangible personal
3279	3279	5 property purchased by an active duty member of the armed
3280	3280	6 forces of the United States who presents valid military
3281	3281	7 identification and purchases the property using a form of
3282	3282	8 payment where the federal government is the payor. The
3283	3283	9 member of the armed forces must complete, at the point of
3284	3284	10 sale, a form prescribed by the Department of Revenue
3285	3285	11 documenting that the transaction is eligible for the
3286	3286	12 exemption under this paragraph. Retailers must keep the
3287	3287	13 form as documentation of the exemption in their records
3288	3288	14 for a period of not less than 6 years. "Armed forces of the
3289	3289	15 United States" means the United States Army, Navy, Air
3290	3290	16 Force, Marine Corps, or Coast Guard. This paragraph is
3291	3291	17 exempt from the provisions of Section 2-70.
3292	3292	18 (49) Materials furnished to a common interest
3293	3293	19 community association pursuant to a contract entered into
3294	3294	20 with the highway commissioner of a road district under
3295	3295	21 subsection (k) of Section 1-30 of the Common Interest
3296	3296	22 Community Association Act. This paragraph is exempt from
3297	3297	23 the provisions of Section 2-70.
3298	3298	24 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
3299	3299	25 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3300	3300	26 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3301	3301
3302	3302
3303	3303
3304	3304
3305	3305
3306	3306	HB5901 - 91 - LRB103 42819 HLH 76068 b
3307	3307
3308	3308
3309	3309	HB5901- 92 -LRB103 42819 HLH 76068 b HB5901 - 92 - LRB103 42819 HLH 76068 b
3310	3310	HB5901 - 92 - LRB103 42819 HLH 76068 b
3311	3311
3312	3312
3313	3313
3314	3314
3315	3315
3316	3316	HB5901 - 92 - LRB103 42819 HLH 76068 b