Illinois Senate Bill SB1249 Latest Draft

                            103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1249 Introduced 2/3/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:  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, beginning on January 1, 2024, the exemption for farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture. Effective immediately.  LRB103 00142 HLH 45147 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1249 Introduced 2/3/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:  35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 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, beginning on January 1, 2024, the exemption for farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture. Effective immediately.  LRB103 00142 HLH 45147 b     LRB103 00142 HLH 45147 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1249 Introduced 2/3/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 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, beginning on January 1, 2024, the exemption for farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture. Effective immediately.
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A BILL FOR
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1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Section
5  3-5 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use of the following tangible
8  personal property is exempt from the tax imposed by this Act:
9  (1) Personal property purchased from a corporation,
10  society, association, foundation, institution, or
11  organization, other than a limited liability company, that is
12  organized and operated as a not-for-profit service enterprise
13  for the benefit of persons 65 years of age or older if the
14  personal property was not purchased by the enterprise for the
15  purpose of resale by the enterprise.
16  (2) Personal property purchased by a not-for-profit
17  Illinois county fair association for use in conducting,
18  operating, or promoting the county fair.
19  (3) Personal property purchased by a not-for-profit arts
20  or cultural organization that establishes, by proof required
21  by the Department by rule, that it has received an exemption
22  under Section 501(c)(3) of the Internal Revenue Code and that
23  is organized and operated primarily for the presentation or

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1249 Introduced 2/3/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 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, beginning on January 1, 2024, the exemption for farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture. Effective immediately.
LRB103 00142 HLH 45147 b     LRB103 00142 HLH 45147 b
    LRB103 00142 HLH 45147 b
A BILL FOR

 

 

35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5



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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  under Title IV of the Environmental Protection Act. This
2  paragraph is exempt from the provisions of Section 3-90.
3  (35) Beginning January 1, 2010 and continuing through
4  December 31, 2024, materials, parts, equipment, components,
5  and furnishings incorporated into or upon an aircraft as part
6  of the modification, refurbishment, completion, replacement,
7  repair, or maintenance of the aircraft. This exemption
8  includes consumable supplies used in the modification,
9  refurbishment, completion, replacement, repair, and
10  maintenance of aircraft, but excludes any materials, parts,
11  equipment, components, and consumable supplies used in the
12  modification, replacement, repair, and maintenance of aircraft
13  engines or power plants, whether such engines or power plants
14  are installed or uninstalled upon any such aircraft.
15  "Consumable supplies" include, but are not limited to,
16  adhesive, tape, sandpaper, general purpose lubricants,
17  cleaning solution, latex gloves, and protective films. This
18  exemption applies only to the use of qualifying tangible
19  personal property by persons who modify, refurbish, complete,
20  repair, replace, or maintain aircraft and who (i) hold an Air
21  Agency Certificate and are empowered to operate an approved
22  repair station by the Federal Aviation Administration, (ii)
23  have a Class IV Rating, and (iii) conduct operations in
24  accordance with Part 145 of the Federal Aviation Regulations.
25  The exemption does not include aircraft operated by a
26  commercial air carrier providing scheduled passenger air

 

 

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1  service pursuant to authority issued under Part 121 or Part
2  129 of the Federal Aviation Regulations. The changes made to
3  this paragraph (35) by Public Act 98-534 are declarative of
4  existing law. It is the intent of the General Assembly that the
5  exemption under this paragraph (35) applies continuously from
6  January 1, 2010 through December 31, 2024; however, no claim
7  for credit or refund is allowed for taxes paid as a result of
8  the disallowance of this exemption on or after January 1, 2015
9  and prior to February 5, 2020 (the effective date of Public Act
10  101-629) this amendatory Act of the 101st General Assembly.
11  (36) Tangible personal property purchased by a
12  public-facilities corporation, as described in Section
13  11-65-10 of the Illinois Municipal Code, for purposes of
14  constructing or furnishing a municipal convention hall, but
15  only if the legal title to the municipal convention hall is
16  transferred to the municipality without any further
17  consideration by or on behalf of the municipality at the time
18  of the completion of the municipal convention hall or upon the
19  retirement or redemption of any bonds or other debt
20  instruments issued by the public-facilities corporation in
21  connection with the development of the municipal convention
22  hall. This exemption includes existing public-facilities
23  corporations as provided in Section 11-65-25 of the Illinois
24  Municipal Code. This paragraph is exempt from the provisions
25  of Section 3-90.
26  (37) Beginning January 1, 2017 and through December 31,

 

 

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1  2026, menstrual pads, tampons, and menstrual cups.
2  (38) Merchandise that is subject to the Rental Purchase
3  Agreement Occupation and Use Tax. The purchaser must certify
4  that the item is purchased to be rented subject to a rental
5  purchase agreement, as defined in the Rental Purchase
6  Agreement Act, and provide proof of registration under the
7  Rental Purchase Agreement Occupation and Use Tax Act. This
8  paragraph is exempt from the provisions of Section 3-90.
9  (39) Tangible personal property purchased by a purchaser
10  who is exempt from the tax imposed by this Act by operation of
11  federal law. This paragraph is exempt from the provisions of
12  Section 3-90.
13  (40) Qualified tangible personal property used in the
14  construction or operation of a data center that has been
15  granted a certificate of exemption by the Department of
16  Commerce and Economic Opportunity, whether that tangible
17  personal property is purchased by the owner, operator, or
18  tenant of the data center or by a contractor or subcontractor
19  of the owner, operator, or tenant. Data centers that would
20  have qualified for a certificate of exemption prior to January
21  1, 2020 had Public Act 101-31 been in effect may apply for and
22  obtain an exemption for subsequent purchases of computer
23  equipment or enabling software purchased or leased to upgrade,
24  supplement, or replace computer equipment or enabling software
25  purchased or leased in the original investment that would have
26  qualified.

 

 

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1  The Department of Commerce and Economic Opportunity shall
2  grant a certificate of exemption under this item (40) to
3  qualified data centers as defined by Section 605-1025 of the
4  Department of Commerce and Economic Opportunity Law of the
5  Civil Administrative Code of Illinois.
6  For the purposes of this item (40):
7  "Data center" means a building or a series of
8  buildings rehabilitated or constructed to house working
9  servers in one physical location or multiple sites within
10  the State of Illinois.
11  "Qualified tangible personal property" means:
12  electrical systems and equipment; climate control and
13  chilling equipment and systems; mechanical systems and
14  equipment; monitoring and secure systems; emergency
15  generators; hardware; computers; servers; data storage
16  devices; network connectivity equipment; racks; cabinets;
17  telecommunications cabling infrastructure; raised floor
18  systems; peripheral components or systems; software;
19  mechanical, electrical, or plumbing systems; battery
20  systems; cooling systems and towers; temperature control
21  systems; other cabling; and other data center
22  infrastructure equipment and systems necessary to operate
23  qualified tangible personal property, including fixtures;
24  and component parts of any of the foregoing, including
25  installation, maintenance, repair, refurbishment, and
26  replacement of qualified tangible personal property to

 

 

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1  generate, transform, transmit, distribute, or manage
2  electricity necessary to operate qualified tangible
3  personal property; and all other tangible personal
4  property that is essential to the operations of a computer
5  data center. The term "qualified tangible personal
6  property" also includes building materials physically
7  incorporated in to the qualifying data center. To document
8  the exemption allowed under this Section, the retailer
9  must obtain from the purchaser a copy of the certificate
10  of eligibility issued by the Department of Commerce and
11  Economic Opportunity.
12  This item (40) is exempt from the provisions of Section
13  3-90.
14  (41) Beginning July 1, 2022, breast pumps, breast pump
15  collection and storage supplies, and breast pump kits. This
16  item (41) is exempt from the provisions of Section 3-90. As
17  used in this item (41):
18  "Breast pump" means an electrically controlled or
19  manually controlled pump device designed or marketed to be
20  used to express milk from a human breast during lactation,
21  including the pump device and any battery, AC adapter, or
22  other power supply unit that is used to power the pump
23  device and is packaged and sold with the pump device at the
24  time of sale.
25  "Breast pump collection and storage supplies" means
26  items of tangible personal property designed or marketed

 

 

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

 

 

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1  packs, and a breast pump carrying case; and (2) is
2  pre-packaged as a breast pump kit by the breast pump
3  manufacturer or distributor.
4  (42) (41) Tangible personal property sold by or on behalf
5  of the State Treasurer pursuant to the Revised Uniform
6  Unclaimed Property Act. This item (42) (41) is exempt from the
7  provisions of Section 3-90.
8  (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
9  101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
10  6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
11  102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
12  eff. 5-27-22; revised 8-1-22.)
13  Section 10. The Service Use Tax Act is amended by changing
14  Section 3-5 as follows:
15  (35 ILCS 110/3-5)
16  Sec. 3-5. Exemptions. Use of the following tangible
17  personal property is exempt from the tax imposed by this Act:
18  (1) Personal property purchased from a corporation,
19  society, association, foundation, institution, or
20  organization, other than a limited liability company, that is
21  organized and operated as a not-for-profit service enterprise
22  for the benefit of persons 65 years of age or older if the
23  personal property was not purchased by the enterprise for the
24  purpose of resale by the enterprise.

 

 

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

 

 

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

 

 

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1  tanks and dry boxes shall include units sold separately from a
2  motor vehicle required to be licensed and units sold mounted
3  on a motor vehicle required to be licensed if the selling price
4  of the tender is separately stated.
5  Farm machinery and equipment shall include precision
6  farming equipment that is installed or purchased to be
7  installed on farm machinery and equipment including, but not
8  limited to, tractors, harvesters, sprayers, planters, seeders,
9  or spreaders. Precision farming equipment includes, but is not
10  limited to, soil testing sensors, computers, monitors,
11  software, global positioning and mapping systems, and other
12  such equipment.
13  Farm machinery and equipment also includes computers,
14  sensors, software, and related equipment used primarily in the
15  computer-assisted operation of production agriculture
16  facilities, equipment, and activities such as, but not limited
17  to, the collection, monitoring, and correlation of animal and
18  crop data for the purpose of formulating animal diets and
19  agricultural chemicals.
20  Beginning on January 1, 2024, farm machinery and equipment
21  also includes electrical power generation equipment used
22  primarily for production agriculture.
23  This item (7) is exempt from the provisions of Section
24  3-75.
25  (8) Until June 30, 2013, fuel and petroleum products sold
26  to or used by an air common carrier, certified by the carrier

 

 

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1  to be used for consumption, shipment, or storage in the
2  conduct of its business as an air common carrier, for a flight
3  destined for or returning from a location or locations outside
4  the United States without regard to previous or subsequent
5  domestic stopovers.
6  Beginning July 1, 2013, fuel and petroleum products sold
7  to or used by an air carrier, certified by the carrier to be
8  used for consumption, shipment, or storage in the conduct of
9  its business as an air common carrier, for a flight that (i) is
10  engaged in foreign trade or is engaged in trade between the
11  United States and any of its possessions and (ii) transports
12  at least one individual or package for hire from the city of
13  origination to the city of final destination on the same
14  aircraft, without regard to a change in the flight number of
15  that aircraft.
16  (9) Proceeds of mandatory service charges separately
17  stated on customers' bills for the purchase and consumption of
18  food and beverages acquired as an incident to the purchase of a
19  service from a serviceman, to the extent that the proceeds of
20  the service charge are in fact turned over as tips or as a
21  substitute for tips to the employees who participate directly
22  in preparing, serving, hosting or cleaning up the food or
23  beverage function with respect to which the service charge is
24  imposed.
25  (10) Until July 1, 2003, oil field exploration, drilling,
26  and production equipment, including (i) rigs and parts of

 

 

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

 

 

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1  for direct agricultural production.
2  (14) Horses, or interests in horses, registered with and
3  meeting the requirements of any of the Arabian Horse Club
4  Registry of America, Appaloosa Horse Club, American Quarter
5  Horse Association, United States Trotting Association, or
6  Jockey Club, as appropriate, used for purposes of breeding or
7  racing for prizes. This item (14) is exempt from the
8  provisions of Section 3-75, and the exemption provided for
9  under this item (14) applies for all periods beginning May 30,
10  1995, but no claim for credit or refund is allowed on or after
11  January 1, 2008 (the effective date of Public Act 95-88) for
12  such taxes paid during the period beginning May 30, 2000 and
13  ending on January 1, 2008 (the effective date of Public Act
14  95-88).
15  (15) Computers and communications equipment utilized for
16  any hospital purpose and equipment used in the diagnosis,
17  analysis, or treatment of hospital patients purchased by a
18  lessor who leases the equipment, under a lease of one year or
19  longer executed or in effect at the time the lessor would
20  otherwise be subject to the tax imposed by this Act, to a
21  hospital that has been issued an active tax exemption
22  identification number by the Department under Section 1g of
23  the Retailers' Occupation Tax Act. If the equipment is leased
24  in a manner that does not qualify for this exemption or is used
25  in any other non-exempt manner, the lessor shall be liable for
26  the tax imposed under this Act or the Use Tax Act, as the case

 

 

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

 

 

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

 

 

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1  in the declared disaster area within 6 months after the
2  disaster.
3  (19) Beginning July 1, 1999, game or game birds purchased
4  at a "game breeding and hunting preserve area" as that term is
5  used in the Wildlife Code. This paragraph is exempt from the
6  provisions of Section 3-75.
7  (20) A motor vehicle, as that term is defined in Section
8  1-146 of the Illinois Vehicle Code, that is donated to a
9  corporation, limited liability company, society, association,
10  foundation, or institution that is determined by the
11  Department to be organized and operated exclusively for
12  educational purposes. For purposes of this exemption, "a
13  corporation, limited liability company, society, association,
14  foundation, or institution organized and operated exclusively
15  for educational purposes" means all tax-supported public
16  schools, private schools that offer systematic instruction in
17  useful branches of learning by methods common to public
18  schools and that compare favorably in their scope and
19  intensity with the course of study presented in tax-supported
20  schools, and vocational or technical schools or institutes
21  organized and operated exclusively to provide a course of
22  study of not less than 6 weeks duration and designed to prepare
23  individuals to follow a trade or to pursue a manual,
24  technical, mechanical, industrial, business, or commercial
25  occupation.
26  (21) Beginning January 1, 2000, personal property,

 

 

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1  including food, purchased through fundraising events for the
2  benefit of a public or private elementary or secondary school,
3  a group of those schools, or one or more school districts if
4  the events are sponsored by an entity recognized by the school
5  district that consists primarily of volunteers and includes
6  parents and teachers of the school children. This paragraph
7  does not apply to fundraising events (i) for the benefit of
8  private home instruction or (ii) for which the fundraising
9  entity purchases the personal property sold at the events from
10  another individual or entity that sold the property for the
11  purpose of resale by the fundraising entity and that profits
12  from the sale to the fundraising entity. This paragraph is
13  exempt from the provisions of Section 3-75.
14  (22) Beginning January 1, 2000 and through December 31,
15  2001, new or used automatic vending machines that prepare and
16  serve hot food and beverages, including coffee, soup, and
17  other items, and replacement parts for these machines.
18  Beginning January 1, 2002 and through June 30, 2003, machines
19  and parts for machines used in commercial, coin-operated
20  amusement and vending business if a use or occupation tax is
21  paid on the gross receipts derived from the use of the
22  commercial, coin-operated amusement and vending machines. This
23  paragraph is exempt from the provisions of Section 3-75.
24  (23) Beginning August 23, 2001 and through June 30, 2016,
25  food for human consumption that is to be consumed off the
26  premises where it is sold (other than alcoholic beverages,

 

 

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

 

 

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

 

 

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1  from the lessee, the lessee shall have a legal right to claim a
2  refund of that amount from the lessor. If, however, that
3  amount is not refunded to the lessee for any reason, the lessor
4  is liable to pay that amount to the Department. This paragraph
5  is exempt from the provisions of Section 3-75.
6  (26) Beginning January 1, 2008, tangible personal property
7  used in the construction or maintenance of a community water
8  supply, as defined under Section 3.145 of the Environmental
9  Protection Act, that is operated by a not-for-profit
10  corporation that holds a valid water supply permit issued
11  under Title IV of the Environmental Protection Act. This
12  paragraph is exempt from the provisions of Section 3-75.
13  (27) Beginning January 1, 2010 and continuing through
14  December 31, 2024, materials, parts, equipment, components,
15  and furnishings incorporated into or upon an aircraft as part
16  of the modification, refurbishment, completion, replacement,
17  repair, or maintenance of the aircraft. This exemption
18  includes consumable supplies used in the modification,
19  refurbishment, completion, replacement, repair, and
20  maintenance of aircraft, but excludes any materials, parts,
21  equipment, components, and consumable supplies used in the
22  modification, replacement, repair, and maintenance of aircraft
23  engines or power plants, whether such engines or power plants
24  are installed or uninstalled upon any such aircraft.
25  "Consumable supplies" include, but are not limited to,
26  adhesive, tape, sandpaper, general purpose lubricants,

 

 

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1  cleaning solution, latex gloves, and protective films. This
2  exemption applies only to the use of qualifying tangible
3  personal property transferred incident to the modification,
4  refurbishment, completion, replacement, repair, or maintenance
5  of aircraft by persons who (i) hold an Air Agency Certificate
6  and are empowered to operate an approved repair station by the
7  Federal Aviation Administration, (ii) have a Class IV Rating,
8  and (iii) conduct operations in accordance with Part 145 of
9  the Federal Aviation Regulations. The exemption does not
10  include aircraft operated by a commercial air carrier
11  providing scheduled passenger air service pursuant to
12  authority issued under Part 121 or Part 129 of the Federal
13  Aviation Regulations. The changes made to this paragraph (27)
14  by Public Act 98-534 are declarative of existing law. It is the
15  intent of the General Assembly that the exemption under this
16  paragraph (27) applies continuously from January 1, 2010
17  through December 31, 2024; however, no claim for credit or
18  refund is allowed for taxes paid as a result of the
19  disallowance of this exemption on or after January 1, 2015 and
20  prior to February 5, 2020 (the effective date of Public Act
21  101-629) this amendatory Act of the 101st General Assembly.
22  (28) Tangible personal property purchased by a
23  public-facilities corporation, as described in Section
24  11-65-10 of the Illinois Municipal Code, for purposes of
25  constructing or furnishing a municipal convention hall, but
26  only if the legal title to the municipal convention hall is

 

 

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1  transferred to the municipality without any further
2  consideration by or on behalf of the municipality at the time
3  of the completion of the municipal convention hall or upon the
4  retirement or redemption of any bonds or other debt
5  instruments issued by the public-facilities corporation in
6  connection with the development of the municipal convention
7  hall. This exemption includes existing public-facilities
8  corporations as provided in Section 11-65-25 of the Illinois
9  Municipal Code. This paragraph is exempt from the provisions
10  of Section 3-75.
11  (29) Beginning January 1, 2017 and through December 31,
12  2026, menstrual pads, tampons, and menstrual cups.
13  (30) Tangible personal property transferred to a purchaser
14  who is exempt from the tax imposed by this Act by operation of
15  federal law. This paragraph is exempt from the provisions of
16  Section 3-75.
17  (31) Qualified tangible personal property used in the
18  construction or operation of a data center that has been
19  granted a certificate of exemption by the Department of
20  Commerce and Economic Opportunity, whether that tangible
21  personal property is purchased by the owner, operator, or
22  tenant of the data center or by a contractor or subcontractor
23  of the owner, operator, or tenant. Data centers that would
24  have qualified for a certificate of exemption prior to January
25  1, 2020 had Public Act 101-31 this amendatory Act of the 101st
26  General Assembly been in effect, may apply for and obtain an

 

 

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

 

 

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

 

 

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

 

 

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1  or distributor.
2  "Breast pump kit" means a kit that: (1) contains no
3  more than a breast pump, breast pump collection and
4  storage supplies, a rechargeable battery for operating the
5  breast pump, a breastmilk cooler, bottle stands, ice
6  packs, and a breast pump carrying case; and (2) is
7  pre-packaged as a breast pump kit by the breast pump
8  manufacturer or distributor.
9  (33) (32) Tangible personal property sold by or on behalf
10  of the State Treasurer pursuant to the Revised Uniform
11  Unclaimed Property Act. This item (33) (32) is exempt from the
12  provisions of Section 3-75.
13  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
14  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
15  70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
16  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
17  Section 15. The Service Occupation Tax Act is amended by
18  changing Section 3-5 as follows:
19  (35 ILCS 115/3-5)
20  Sec. 3-5. Exemptions. The following tangible personal
21  property is exempt from the tax imposed by this Act:
22  (1) Personal property sold by a corporation, society,
23  association, foundation, institution, or organization, other
24  than a limited liability company, that is organized and

 

 

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1  operated as a not-for-profit service enterprise for the
2  benefit of persons 65 years of age or older if the personal
3  property was not purchased by the enterprise for the purpose
4  of resale by the enterprise.
5  (2) Personal property purchased by a not-for-profit
6  Illinois county fair association for use in conducting,
7  operating, or promoting the county fair.
8  (3) Personal property purchased by any not-for-profit arts
9  or cultural organization that establishes, by proof required
10  by the Department by rule, that it has received an exemption
11  under Section 501(c)(3) of the Internal Revenue Code and that
12  is organized and operated primarily for the presentation or
13  support of arts or cultural programming, activities, or
14  services. These organizations include, but are not limited to,
15  music and dramatic arts organizations such as symphony
16  orchestras and theatrical groups, arts and cultural service
17  organizations, local arts councils, visual arts organizations,
18  and media arts organizations. On and after July 1, 2001 (the
19  effective date of Public Act 92-35), however, an entity
20  otherwise eligible for this exemption shall not make tax-free
21  purchases unless it has an active identification number issued
22  by the Department.
23  (4) Legal tender, currency, medallions, or gold or silver
24  coinage issued by the State of Illinois, the government of the
25  United States of America, or the government of any foreign
26  country, and bullion.

 

 

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1  (5) Until July 1, 2003 and beginning again on September 1,
2  2004 through August 30, 2014, graphic arts machinery and
3  equipment, including repair and replacement parts, both new
4  and used, and including that manufactured on special order or
5  purchased for lease, certified by the purchaser to be used
6  primarily for graphic arts production. Equipment includes
7  chemicals or chemicals acting as catalysts but only if the
8  chemicals or chemicals acting as catalysts effect a direct and
9  immediate change upon a graphic arts product. Beginning on
10  July 1, 2017, graphic arts machinery and equipment is included
11  in the manufacturing and assembling machinery and equipment
12  exemption under Section 2 of this Act.
13  (6) Personal property sold by a teacher-sponsored student
14  organization affiliated with an elementary or secondary school
15  located in Illinois.
16  (7) Farm machinery and equipment, both new and used,
17  including that manufactured on special order, certified by the
18  purchaser to be used primarily for production agriculture or
19  State or federal agricultural programs, including individual
20  replacement parts for the machinery and equipment, including
21  machinery and equipment purchased for lease, and including
22  implements of husbandry defined in Section 1-130 of the
23  Illinois Vehicle Code, farm machinery and agricultural
24  chemical and fertilizer spreaders, and nurse wagons required
25  to be registered under Section 3-809 of the Illinois Vehicle
26  Code, but excluding other motor vehicles required to be

 

 

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

 

 

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1  This item (7) is exempt from the provisions of Section
2  3-55.
3  (8) Until June 30, 2013, fuel and petroleum products sold
4  to or used by an air common carrier, certified by the carrier
5  to be used for consumption, shipment, or storage in the
6  conduct of its business as an air common carrier, for a flight
7  destined for or returning from a location or locations outside
8  the United States without regard to previous or subsequent
9  domestic stopovers.
10  Beginning July 1, 2013, fuel and petroleum products sold
11  to or used by an air carrier, certified by the carrier to be
12  used for consumption, shipment, or storage in the conduct of
13  its business as an air common carrier, for a flight that (i) is
14  engaged in foreign trade or is engaged in trade between the
15  United States and any of its possessions and (ii) transports
16  at least one individual or package for hire from the city of
17  origination to the city of final destination on the same
18  aircraft, without regard to a change in the flight number of
19  that aircraft.
20  (9) Proceeds of mandatory service charges separately
21  stated on customers' bills for the purchase and consumption of
22  food and beverages, to the extent that the proceeds of the
23  service charge are in fact turned over as tips or as a
24  substitute for tips to the employees who participate directly
25  in preparing, serving, hosting or cleaning up the food or
26  beverage function with respect to which the service charge is

 

 

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

 

 

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1  16, 2013 (the effective date of Public Act 98-456).
2  (13) Beginning January 1, 1992 and through June 30, 2016,
3  food for human consumption that is to be consumed off the
4  premises where it is sold (other than alcoholic beverages,
5  soft drinks and food that has been prepared for immediate
6  consumption) and prescription and non-prescription medicines,
7  drugs, medical appliances, and insulin, urine testing
8  materials, syringes, and needles used by diabetics, for human
9  use, when purchased for use by a person receiving medical
10  assistance under Article V of the Illinois Public Aid Code who
11  resides in a licensed long-term care facility, as defined in
12  the Nursing Home Care Act, or in a licensed facility as defined
13  in the ID/DD Community Care Act, the MC/DD Act, or the
14  Specialized Mental Health Rehabilitation Act of 2013.
15  (14) Semen used for artificial insemination of livestock
16  for direct agricultural production.
17  (15) Horses, or interests in horses, registered with and
18  meeting the requirements of any of the Arabian Horse Club
19  Registry of America, Appaloosa Horse Club, American Quarter
20  Horse Association, United States Trotting Association, or
21  Jockey Club, as appropriate, used for purposes of breeding or
22  racing for prizes. This item (15) is exempt from the
23  provisions of Section 3-55, and the exemption provided for
24  under this item (15) applies for all periods beginning May 30,
25  1995, but no claim for credit or refund is allowed on or after
26  January 1, 2008 (the effective date of Public Act 95-88) for

 

 

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1  such taxes paid during the period beginning May 30, 2000 and
2  ending on January 1, 2008 (the effective date of Public Act
3  95-88).
4  (16) Computers and communications equipment utilized for
5  any hospital purpose and equipment used in the diagnosis,
6  analysis, or treatment of hospital patients sold to a lessor
7  who leases the equipment, under a lease of one year or longer
8  executed or in effect at the time of the purchase, to a
9  hospital that has been issued an active tax exemption
10  identification number by the Department under Section 1g of
11  the Retailers' Occupation Tax Act.
12  (17) Personal property sold to a lessor who leases the
13  property, under a lease of one year or longer executed or in
14  effect at the time of the purchase, to a governmental body that
15  has been issued an active tax exemption identification number
16  by the Department under Section 1g of the Retailers'
17  Occupation Tax Act.
18  (18) Beginning with taxable years ending on or after
19  December 31, 1995 and ending with taxable years ending on or
20  before December 31, 2004, personal property that is donated
21  for disaster relief to be used in a State or federally declared
22  disaster area in Illinois or bordering Illinois by a
23  manufacturer or retailer that is registered in this State to a
24  corporation, society, association, foundation, or institution
25  that has been issued a sales tax exemption identification
26  number by the Department that assists victims of the disaster

 

 

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1  who reside within the declared disaster area.
2  (19) Beginning with taxable years ending on or after
3  December 31, 1995 and ending with taxable years ending on or
4  before December 31, 2004, personal property that is used in
5  the performance of infrastructure repairs in this State,
6  including but not limited to municipal roads and streets,
7  access roads, bridges, sidewalks, waste disposal systems,
8  water and sewer line extensions, water distribution and
9  purification facilities, storm water drainage and retention
10  facilities, and sewage treatment facilities, resulting from a
11  State or federally declared disaster in Illinois or bordering
12  Illinois when such repairs are initiated on facilities located
13  in the declared disaster area within 6 months after the
14  disaster.
15  (20) Beginning July 1, 1999, game or game birds sold at a
16  "game breeding and hunting preserve area" as that term is used
17  in the Wildlife Code. This paragraph is exempt from the
18  provisions of Section 3-55.
19  (21) A motor vehicle, as that term is defined in Section
20  1-146 of the Illinois Vehicle Code, that is donated to a
21  corporation, limited liability company, society, association,
22  foundation, or institution that is determined by the
23  Department to be organized and operated exclusively for
24  educational purposes. For purposes of this exemption, "a
25  corporation, limited liability company, society, association,
26  foundation, or institution organized and operated exclusively

 

 

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1  for educational purposes" means all tax-supported public
2  schools, private schools that offer systematic instruction in
3  useful branches of learning by methods common to public
4  schools and that compare favorably in their scope and
5  intensity with the course of study presented in tax-supported
6  schools, and vocational or technical schools or institutes
7  organized and operated exclusively to provide a course of
8  study of not less than 6 weeks duration and designed to prepare
9  individuals to follow a trade or to pursue a manual,
10  technical, mechanical, industrial, business, or commercial
11  occupation.
12  (22) Beginning January 1, 2000, personal property,
13  including food, purchased through fundraising events for the
14  benefit of a public or private elementary or secondary school,
15  a group of those schools, or one or more school districts if
16  the events are sponsored by an entity recognized by the school
17  district that consists primarily of volunteers and includes
18  parents and teachers of the school children. This paragraph
19  does not apply to fundraising events (i) for the benefit of
20  private home instruction or (ii) for which the fundraising
21  entity purchases the personal property sold at the events from
22  another individual or entity that sold the property for the
23  purpose of resale by the fundraising entity and that profits
24  from the sale to the fundraising entity. This paragraph is
25  exempt from the provisions of Section 3-55.
26  (23) Beginning January 1, 2000 and through December 31,

 

 

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1  2001, new or used automatic vending machines that prepare and
2  serve hot food and beverages, including coffee, soup, and
3  other items, and replacement parts for these machines.
4  Beginning January 1, 2002 and through June 30, 2003, machines
5  and parts for machines used in commercial, coin-operated
6  amusement and vending business if a use or occupation tax is
7  paid on the gross receipts derived from the use of the
8  commercial, coin-operated amusement and vending machines. This
9  paragraph is exempt from the provisions of Section 3-55.
10  (24) Beginning on August 2, 2001 (the effective date of
11  Public Act 92-227), computers and communications equipment
12  utilized for any hospital purpose and equipment used in the
13  diagnosis, analysis, or treatment of hospital patients sold to
14  a lessor who leases the equipment, under a lease of one year or
15  longer executed or in effect at the time of the purchase, to a
16  hospital that has been issued an active tax exemption
17  identification number by the Department under Section 1g of
18  the Retailers' Occupation Tax Act. This paragraph is exempt
19  from the provisions of Section 3-55.
20  (25) Beginning on August 2, 2001 (the effective date of
21  Public Act 92-227), personal property sold to a lessor who
22  leases the property, under a lease of one year or longer
23  executed or in effect at the time of the purchase, to a
24  governmental body that has been issued an active tax exemption
25  identification number by the Department under Section 1g of
26  the Retailers' Occupation Tax Act. This paragraph is exempt

 

 

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1  from the provisions of Section 3-55.
2  (26) Beginning on January 1, 2002 and through June 30,
3  2016, tangible personal property purchased from an Illinois
4  retailer by a taxpayer engaged in centralized purchasing
5  activities in Illinois who will, upon receipt of the property
6  in Illinois, temporarily store the property in Illinois (i)
7  for the purpose of subsequently transporting it outside this
8  State for use or consumption thereafter solely outside this
9  State or (ii) for the purpose of being processed, fabricated,
10  or manufactured into, attached to, or incorporated into other
11  tangible personal property to be transported outside this
12  State and thereafter used or consumed solely outside this
13  State. The Director of Revenue shall, pursuant to rules
14  adopted in accordance with the Illinois Administrative
15  Procedure Act, issue a permit to any taxpayer in good standing
16  with the Department who is eligible for the exemption under
17  this paragraph (26). The permit issued under this paragraph
18  (26) shall authorize the holder, to the extent and in the
19  manner specified in the rules adopted under this Act, to
20  purchase tangible personal property from a retailer exempt
21  from the taxes imposed by this Act. Taxpayers shall maintain
22  all necessary books and records to substantiate the use and
23  consumption of all such tangible personal property outside of
24  the State of Illinois.
25  (27) Beginning January 1, 2008, tangible personal property
26  used in the construction or maintenance of a community water

 

 

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1  supply, as defined under Section 3.145 of the Environmental
2  Protection Act, that is operated by a not-for-profit
3  corporation that holds a valid water supply permit issued
4  under Title IV of the Environmental Protection Act. This
5  paragraph is exempt from the provisions of Section 3-55.
6  (28) Tangible personal property sold to a
7  public-facilities corporation, as described in Section
8  11-65-10 of the Illinois Municipal Code, for purposes of
9  constructing or furnishing a municipal convention hall, but
10  only if the legal title to the municipal convention hall is
11  transferred to the municipality without any further
12  consideration by or on behalf of the municipality at the time
13  of the completion of the municipal convention hall or upon the
14  retirement or redemption of any bonds or other debt
15  instruments issued by the public-facilities corporation in
16  connection with the development of the municipal convention
17  hall. This exemption includes existing public-facilities
18  corporations as provided in Section 11-65-25 of the Illinois
19  Municipal Code. This paragraph is exempt from the provisions
20  of Section 3-55.
21  (29) Beginning January 1, 2010 and continuing through
22  December 31, 2024, materials, parts, equipment, components,
23  and furnishings incorporated into or upon an aircraft as part
24  of the modification, refurbishment, completion, replacement,
25  repair, or maintenance of the aircraft. This exemption
26  includes consumable supplies used in the modification,

 

 

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1  refurbishment, completion, replacement, repair, and
2  maintenance of aircraft, but excludes any materials, parts,
3  equipment, components, and consumable supplies used in the
4  modification, replacement, repair, and maintenance of aircraft
5  engines or power plants, whether such engines or power plants
6  are installed or uninstalled upon any such aircraft.
7  "Consumable supplies" include, but are not limited to,
8  adhesive, tape, sandpaper, general purpose lubricants,
9  cleaning solution, latex gloves, and protective films. This
10  exemption applies only to the transfer of qualifying tangible
11  personal property incident to the modification, refurbishment,
12  completion, replacement, repair, or maintenance of an aircraft
13  by persons who (i) hold an Air Agency Certificate and are
14  empowered to operate an approved repair station by the Federal
15  Aviation Administration, (ii) have a Class IV Rating, and
16  (iii) conduct operations in accordance with Part 145 of the
17  Federal Aviation Regulations. The exemption does not include
18  aircraft operated by a commercial air carrier providing
19  scheduled passenger air service pursuant to authority issued
20  under Part 121 or Part 129 of the Federal Aviation
21  Regulations. The changes made to this paragraph (29) by Public
22  Act 98-534 are declarative of existing law. It is the intent of
23  the General Assembly that the exemption under this paragraph
24  (29) applies continuously from January 1, 2010 through
25  December 31, 2024; however, no claim for credit or refund is
26  allowed for taxes paid as a result of the disallowance of this

 

 

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1  exemption on or after January 1, 2015 and prior to February 5,
2  2020 (the effective date of Public Act 101-629) this
3  amendatory Act of the 101st General Assembly.
4  (30) Beginning January 1, 2017 and through December 31,
5  2026, menstrual pads, tampons, and menstrual cups.
6  (31) Tangible personal property transferred to a purchaser
7  who is exempt from tax by operation of federal law. This
8  paragraph is exempt from the provisions of Section 3-55.
9  (32) Qualified tangible personal property used in the
10  construction or operation of a data center that has been
11  granted a certificate of exemption by the Department of
12  Commerce and Economic Opportunity, whether that tangible
13  personal property is purchased by the owner, operator, or
14  tenant of the data center or by a contractor or subcontractor
15  of the owner, operator, or tenant. Data centers that would
16  have qualified for a certificate of exemption prior to January
17  1, 2020 had Public Act 101-31 this amendatory Act of the 101st
18  General Assembly been in effect, may apply for and obtain an
19  exemption for subsequent purchases of computer equipment or
20  enabling software purchased or leased to upgrade, supplement,
21  or replace computer equipment or enabling software purchased
22  or leased in the original investment that would have
23  qualified.
24  The Department of Commerce and Economic Opportunity shall
25  grant a certificate of exemption under this item (32) to
26  qualified data centers as defined by Section 605-1025 of the

 

 

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

 

 

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

 

 

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

 

 

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1  (34) (33) Tangible personal property sold by or on behalf
2  of the State Treasurer pursuant to the Revised Uniform
3  Unclaimed Property Act. This item (34) (33) is exempt from the
4  provisions of Section 3-55.
5  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
6  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
7  70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
8  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
9  Section 20. The Retailers' Occupation Tax Act is amended
10  by changing Section 2-5 as follows:
11  (35 ILCS 120/2-5)
12  Sec. 2-5. Exemptions. Gross receipts from proceeds from
13  the sale of the following tangible personal property are
14  exempt from the tax imposed by this Act:
15  (1) Farm chemicals.
16  (2) Farm machinery and equipment, both new and used,
17  including that manufactured on special order, certified by
18  the purchaser to be used primarily for production
19  agriculture or State or federal agricultural programs,
20  including individual replacement parts for the machinery
21  and equipment, including machinery and equipment purchased
22  for lease, and including implements of husbandry defined
23  in Section 1-130 of the Illinois Vehicle Code, farm
24  machinery and agricultural chemical and fertilizer

 

 

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1  spreaders, and nurse wagons required to be registered
2  under Section 3-809 of the Illinois Vehicle Code, but
3  excluding other motor vehicles required to be registered
4  under the Illinois Vehicle Code. Horticultural polyhouses
5  or hoop houses used for propagating, growing, or
6  overwintering plants shall be considered farm machinery
7  and equipment under this item (2). Agricultural chemical
8  tender tanks and dry boxes shall include units sold
9  separately from a motor vehicle required to be licensed
10  and units sold mounted on a motor vehicle required to be
11  licensed, if the selling price of the tender is separately
12  stated.
13  Farm machinery and equipment shall include precision
14  farming equipment that is installed or purchased to be
15  installed on farm machinery and equipment including, but
16  not limited to, tractors, harvesters, sprayers, planters,
17  seeders, or spreaders. Precision farming equipment
18  includes, but is not limited to, soil testing sensors,
19  computers, monitors, software, global positioning and
20  mapping systems, and other such equipment.
21  Farm machinery and equipment also includes computers,
22  sensors, software, and related equipment used primarily in
23  the computer-assisted operation of production agriculture
24  facilities, equipment, and activities such as, but not
25  limited to, the collection, monitoring, and correlation of
26  animal and crop data for the purpose of formulating animal

 

 

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1  diets and agricultural chemicals.
2  Beginning on January 1, 2024, farm machinery and
3  equipment also includes electrical power generation
4  equipment used primarily for production agriculture.
5  This item (2) is exempt from the provisions of Section
6  2-70.
7  (3) Until July 1, 2003, distillation machinery and
8  equipment, sold as a unit or kit, assembled or installed
9  by the retailer, certified by the user to be used only for
10  the production of ethyl alcohol that will be used for
11  consumption as motor fuel or as a component of motor fuel
12  for the personal use of the user, and not subject to sale
13  or resale.
14  (4) Until July 1, 2003 and beginning again September
15  1, 2004 through August 30, 2014, graphic arts machinery
16  and equipment, including repair and replacement parts,
17  both new and used, and including that manufactured on
18  special order or purchased for lease, certified by the
19  purchaser to be used primarily for graphic arts
20  production. Equipment includes chemicals or chemicals
21  acting as catalysts but only if the chemicals or chemicals
22  acting as catalysts effect a direct and immediate change
23  upon a graphic arts product. Beginning on July 1, 2017,
24  graphic arts machinery and equipment is included in the
25  manufacturing and assembling machinery and equipment
26  exemption under paragraph (14).

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  2013 (the effective date of Public Act 98-456).
2  (22) Until June 30, 2013, fuel and petroleum products
3  sold to or used by an air carrier, certified by the carrier
4  to be used for consumption, shipment, or storage in the
5  conduct of its business as an air common carrier, for a
6  flight destined for or returning from a location or
7  locations outside the United States without regard to
8  previous or subsequent domestic stopovers.
9  Beginning July 1, 2013, fuel and petroleum products
10  sold to or used by an air carrier, certified by the carrier
11  to be used for consumption, shipment, or storage in the
12  conduct of its business as an air common carrier, for a
13  flight that (i) is engaged in foreign trade or is engaged
14  in trade between the United States and any of its
15  possessions and (ii) transports at least one individual or
16  package for hire from the city of origination to the city
17  of final destination on the same aircraft, without regard
18  to a change in the flight number of that aircraft.
19  (23) A transaction in which the purchase order is
20  received by a florist who is located outside Illinois, but
21  who has a florist located in Illinois deliver the property
22  to the purchaser or the purchaser's donee in Illinois.
23  (24) Fuel consumed or used in the operation of ships,
24  barges, or vessels that are used primarily in or for the
25  transportation of property or the conveyance of persons
26  for hire on rivers bordering on this State if the fuel is

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  distribution and purification facilities, storm water
2  drainage and retention facilities, and sewage treatment
3  facilities, resulting from a State or federally declared
4  disaster in Illinois or bordering Illinois when such
5  repairs are initiated on facilities located in the
6  declared disaster area within 6 months after the disaster.
7  (32) Beginning July 1, 1999, game or game birds sold
8  at a "game breeding and hunting preserve area" as that
9  term is used in the Wildlife Code. This paragraph is
10  exempt from the provisions of Section 2-70.
11  (33) A motor vehicle, as that term is defined in
12  Section 1-146 of the Illinois Vehicle Code, that is
13  donated to a corporation, limited liability company,
14  society, association, foundation, or institution that is
15  determined by the Department to be organized and operated
16  exclusively for educational purposes. For purposes of this
17  exemption, "a corporation, limited liability company,
18  society, association, foundation, or institution organized
19  and operated exclusively for educational purposes" means
20  all tax-supported public schools, private schools that
21  offer systematic instruction in useful branches of
22  learning by methods common to public schools and that
23  compare favorably in their scope and intensity with the
24  course of study presented in tax-supported schools, and
25  vocational or technical schools or institutes organized
26  and operated exclusively to provide a course of study of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  plants, whether such engines or power plants are installed
2  or uninstalled upon any such aircraft. "Consumable
3  supplies" include, but are not limited to, adhesive, tape,
4  sandpaper, general purpose lubricants, cleaning solution,
5  latex gloves, and protective films. This exemption applies
6  only to the sale of qualifying tangible personal property
7  to persons who modify, refurbish, complete, replace, or
8  maintain an aircraft and who (i) hold an Air Agency
9  Certificate and are empowered to operate an approved
10  repair station by the Federal Aviation Administration,
11  (ii) have a Class IV Rating, and (iii) conduct operations
12  in accordance with Part 145 of the Federal Aviation
13  Regulations. The exemption does not include aircraft
14  operated by a commercial air carrier providing scheduled
15  passenger air service pursuant to authority issued under
16  Part 121 or Part 129 of the Federal Aviation Regulations.
17  The changes made to this paragraph (40) by Public Act
18  98-534 are declarative of existing law. It is the intent
19  of the General Assembly that the exemption under this
20  paragraph (40) applies continuously from January 1, 2010
21  through December 31, 2024; however, no claim for credit or
22  refund is allowed for taxes paid as a result of the
23  disallowance of this exemption on or after January 1, 2015
24  and prior to February 5, 2020 (the effective date of
25  Public Act 101-629) this amendatory Act of the 101st
26  General Assembly.

 

 

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1  (41) Tangible personal property sold to a
2  public-facilities corporation, as described in Section
3  11-65-10 of the Illinois Municipal Code, for purposes of
4  constructing or furnishing a municipal convention hall,
5  but only if the legal title to the municipal convention
6  hall is transferred to the municipality without any
7  further consideration by or on behalf of the municipality
8  at the time of the completion of the municipal convention
9  hall or upon the retirement or redemption of any bonds or
10  other debt instruments issued by the public-facilities
11  corporation in connection with the development of the
12  municipal convention hall. This exemption includes
13  existing public-facilities corporations as provided in
14  Section 11-65-25 of the Illinois Municipal Code. This
15  paragraph is exempt from the provisions of Section 2-70.
16  (42) Beginning January 1, 2017 and through December
17  31, 2026, menstrual pads, tampons, and menstrual cups.
18  (43) Merchandise that is subject to the Rental
19  Purchase Agreement Occupation and Use Tax. The purchaser
20  must certify that the item is purchased to be rented
21  subject to a rental purchase agreement, as defined in the
22  Rental Purchase Agreement Act, and provide proof of
23  registration under the Rental Purchase Agreement
24  Occupation and Use Tax Act. This paragraph is exempt from
25  the provisions of Section 2-70.
26  (44) Qualified tangible personal property used in the

 

 

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1  construction or operation of a data center that has been
2  granted a certificate of exemption by the Department of
3  Commerce and Economic Opportunity, whether that tangible
4  personal property is purchased by the owner, operator, or
5  tenant of the data center or by a contractor or
6  subcontractor of the owner, operator, or tenant. Data
7  centers that would have qualified for a certificate of
8  exemption prior to January 1, 2020 had Public Act 101-31
9  this amendatory Act of the 101st General Assembly been in
10  effect, may apply for and obtain an exemption for
11  subsequent purchases of computer equipment or enabling
12  software purchased or leased to upgrade, supplement, or
13  replace computer equipment or enabling software purchased
14  or leased in the original investment that would have
15  qualified.
16  The Department of Commerce and Economic Opportunity
17  shall grant a certificate of exemption under this item
18  (44) to qualified data centers as defined by Section
19  605-1025 of the Department of Commerce and Economic
20  Opportunity Law of the Civil Administrative Code of
21  Illinois.
22  For the purposes of this item (44):
23  "Data center" means a building or a series of
24  buildings rehabilitated or constructed to house
25  working servers in one physical location or multiple
26  sites within the State of Illinois.

 

 

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

 

 

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1  certificate of eligibility issued by the Department of
2  Commerce and Economic Opportunity.
3  This item (44) is exempt from the provisions of
4  Section 2-70.
5  (45) Beginning January 1, 2020 and through December
6  31, 2020, sales of tangible personal property made by a
7  marketplace seller over a marketplace for which tax is due
8  under this Act but for which use tax has been collected and
9  remitted to the Department by a marketplace facilitator
10  under Section 2d of the Use Tax Act are exempt from tax
11  under this Act. A marketplace seller claiming this
12  exemption shall maintain books and records demonstrating
13  that the use tax on such sales has been collected and
14  remitted by a marketplace facilitator. Marketplace sellers
15  that have properly remitted tax under this Act on such
16  sales may file a claim for credit as provided in Section 6
17  of this Act. No claim is allowed, however, for such taxes
18  for which a credit or refund has been issued to the
19  marketplace facilitator under the Use Tax Act, or for
20  which the marketplace facilitator has filed a claim for
21  credit or refund under the Use Tax Act.
22  (46) Beginning July 1, 2022, breast pumps, breast pump
23  collection and storage supplies, and breast pump kits.
24  This item (46) is exempt from the provisions of Section
25  2-70. As used in this item (46):
26  "Breast pump" means an electrically controlled or

 

 

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

 

 

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1  breastfeeding-related symptoms or conditions of the
2  breasts or nipples, unless sold as part of a breast pump
3  kit that is pre-packaged by the breast pump manufacturer
4  or distributor.
5  "Breast pump kit" means a kit that: (1) contains no
6  more than a breast pump, breast pump collection and
7  storage supplies, a rechargeable battery for operating the
8  breast pump, a breastmilk cooler, bottle stands, ice
9  packs, and a breast pump carrying case; and (2) is
10  pre-packaged as a breast pump kit by the breast pump
11  manufacturer or distributor.
12  (47) (46) Tangible personal property sold by or on
13  behalf of the State Treasurer pursuant to the Revised
14  Uniform Unclaimed Property Act. This item (47) (46) is
15  exempt from the provisions of Section 2-70.
16  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
17  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
18  8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
19  102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
20  eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
21  Section 99. Effective date. This Act takes effect upon
22  becoming law.

 

 

  SB1249 - 86 - LRB103 00142 HLH 45147 b