Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1350 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1350 Introduced 2/6/2023, by Sen. Ann Gillespie 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 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-937 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023. LRB103 27798 HLH 54176 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1350 Introduced 2/6/2023, by Sen. Ann Gillespie 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 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-937 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-900 new 35 ILCS 200/10-910 new 35 ILCS 200/10-915 new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-930 new 35 ILCS 200/10-935 new 35 ILCS 200/10-937 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new 35 ILCS 200/10-965 new 35 ILCS 200/10-970 new 35 ILCS 200/10-980 new 35 ILCS 200/10-990 new Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023. LRB103 27798 HLH 54176 b LRB103 27798 HLH 54176 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1350 Introduced 2/6/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-937 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-900 new 35 ILCS 200/10-910 new 35 ILCS 200/10-915 new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-930 new 35 ILCS 200/10-935 new 35 ILCS 200/10-937 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new 35 ILCS 200/10-965 new 35 ILCS 200/10-970 new 35 ILCS 200/10-980 new 35 ILCS 200/10-990 new
4	4	35 ILCS 105/3-5
5	5	35 ILCS 110/3-5
6	6	35 ILCS 115/3-5
7	7	35 ILCS 120/2-5
8	8	35 ILCS 200/Art. 10 Div. 22 heading new
9	9	35 ILCS 200/10-900 new
10	10	35 ILCS 200/10-910 new
11	11	35 ILCS 200/10-915 new
12	12	35 ILCS 200/10-920 new
13	13	35 ILCS 200/10-925 new
14	14	35 ILCS 200/10-930 new
15	15	35 ILCS 200/10-935 new
16	16	35 ILCS 200/10-937 new
17	17	35 ILCS 200/10-940 new
18	18	35 ILCS 200/10-945 new
19	19	35 ILCS 200/10-950 new
20	20	35 ILCS 200/10-955 new
21	21	35 ILCS 200/10-960 new
22	22	35 ILCS 200/10-965 new
23	23	35 ILCS 200/10-970 new
24	24	35 ILCS 200/10-980 new
25	25	35 ILCS 200/10-990 new
26	26	Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023.
27	27	LRB103 27798 HLH 54176 b LRB103 27798 HLH 54176 b
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29	29	A BILL FOR
30	30	SB1350LRB103 27798 HLH 54176 b SB1350 LRB103 27798 HLH 54176 b
31	31	SB1350 LRB103 27798 HLH 54176 b
32	32	1 AN ACT concerning revenue.
33	33	2 Be it enacted by the People of the State of Illinois,
34	34	3 represented in the General Assembly:
35	35	4 Section 5. The Use Tax Act is amended by changing Section
36	36	5 3-5 as follows:
37	37	6 (35 ILCS 105/3-5)
38	38	7 Sec. 3-5. Exemptions. Use of the following tangible
39	39	8 personal property is exempt from the tax imposed by this Act:
40	40	9 (1) Personal property purchased from a corporation,
41	41	10 society, association, foundation, institution, or
42	42	11 organization, other than a limited liability company, that is
43	43	12 organized and operated as a not-for-profit service enterprise
44	44	13 for the benefit of persons 65 years of age or older if the
45	45	14 personal property was not purchased by the enterprise for the
46	46	15 purpose of resale by the enterprise.
47	47	16 (2) Personal property purchased by a not-for-profit
48	48	17 Illinois county fair association for use in conducting,
49	49	18 operating, or promoting the county fair.
50	50	19 (3) Personal property purchased by a not-for-profit arts
51	51	20 or cultural organization that establishes, by proof required
52	52	21 by the Department by rule, that it has received an exemption
53	53	22 under Section 501(c)(3) of the Internal Revenue Code and that
54	54	23 is organized and operated primarily for the presentation or
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58	58	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1350 Introduced 2/6/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
59	59	35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-937 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-900 new 35 ILCS 200/10-910 new 35 ILCS 200/10-915 new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-930 new 35 ILCS 200/10-935 new 35 ILCS 200/10-937 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new 35 ILCS 200/10-965 new 35 ILCS 200/10-970 new 35 ILCS 200/10-980 new 35 ILCS 200/10-990 new
60	60	35 ILCS 105/3-5
61	61	35 ILCS 110/3-5
62	62	35 ILCS 115/3-5
63	63	35 ILCS 120/2-5
64	64	35 ILCS 200/Art. 10 Div. 22 heading new
65	65	35 ILCS 200/10-900 new
66	66	35 ILCS 200/10-910 new
67	67	35 ILCS 200/10-915 new
68	68	35 ILCS 200/10-920 new
69	69	35 ILCS 200/10-925 new
70	70	35 ILCS 200/10-930 new
71	71	35 ILCS 200/10-935 new
72	72	35 ILCS 200/10-937 new
73	73	35 ILCS 200/10-940 new
74	74	35 ILCS 200/10-945 new
75	75	35 ILCS 200/10-950 new
76	76	35 ILCS 200/10-955 new
77	77	35 ILCS 200/10-960 new
78	78	35 ILCS 200/10-965 new
79	79	35 ILCS 200/10-970 new
80	80	35 ILCS 200/10-980 new
81	81	35 ILCS 200/10-990 new
82	82	Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023.
83	83	LRB103 27798 HLH 54176 b LRB103 27798 HLH 54176 b
84	84	LRB103 27798 HLH 54176 b
85	85	A BILL FOR
86	86
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91	91	35 ILCS 105/3-5
92	92	35 ILCS 110/3-5
93	93	35 ILCS 115/3-5
94	94	35 ILCS 120/2-5
95	95	35 ILCS 200/Art. 10 Div. 22 heading new
96	96	35 ILCS 200/10-900 new
97	97	35 ILCS 200/10-910 new
98	98	35 ILCS 200/10-915 new
99	99	35 ILCS 200/10-920 new
100	100	35 ILCS 200/10-925 new
101	101	35 ILCS 200/10-930 new
102	102	35 ILCS 200/10-935 new
103	103	35 ILCS 200/10-937 new
104	104	35 ILCS 200/10-940 new
105	105	35 ILCS 200/10-945 new
106	106	35 ILCS 200/10-950 new
107	107	35 ILCS 200/10-955 new
108	108	35 ILCS 200/10-960 new
109	109	35 ILCS 200/10-965 new
110	110	35 ILCS 200/10-970 new
111	111	35 ILCS 200/10-980 new
112	112	35 ILCS 200/10-990 new
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131	131	1 support of arts or cultural programming, activities, or
132	132	2 services. These organizations include, but are not limited to,
133	133	3 music and dramatic arts organizations such as symphony
134	134	4 orchestras and theatrical groups, arts and cultural service
135	135	5 organizations, local arts councils, visual arts organizations,
136	136	6 and media arts organizations. On and after July 1, 2001 (the
137	137	7 effective date of Public Act 92-35), however, an entity
138	138	8 otherwise eligible for this exemption shall not make tax-free
139	139	9 purchases unless it has an active identification number issued
140	140	10 by the Department.
141	141	11 (4) Personal property purchased by a governmental body, by
142	142	12 a corporation, society, association, foundation, or
143	143	13 institution organized and operated exclusively for charitable,
144	144	14 religious, or educational purposes, or by a not-for-profit
145	145	15 corporation, society, association, foundation, institution, or
146	146	16 organization that has no compensated officers or employees and
147	147	17 that is organized and operated primarily for the recreation of
148	148	18 persons 55 years of age or older. A limited liability company
149	149	19 may qualify for the exemption under this paragraph only if the
150	150	20 limited liability company is organized and operated
151	151	21 exclusively for educational purposes. On and after July 1,
152	152	22 1987, however, no entity otherwise eligible for this exemption
153	153	23 shall make tax-free purchases unless it has an active
154	154	24 exemption identification number issued by the Department.
155	155	25 (5) Until July 1, 2003, a passenger car that is a
156	156	26 replacement vehicle to the extent that the purchase price of
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166	166	SB1350 - 3 - LRB103 27798 HLH 54176 b
167	167	1 the car is subject to the Replacement Vehicle Tax.
168	168	2 (6) Until July 1, 2003 and beginning again on September 1,
169	169	3 2004 through August 30, 2014, graphic arts machinery and
170	170	4 equipment, including repair and replacement parts, both new
171	171	5 and used, and including that manufactured on special order,
172	172	6 certified by the purchaser to be used primarily for graphic
173	173	7 arts production, and including machinery and equipment
174	174	8 purchased for lease. Equipment includes chemicals or chemicals
175	175	9 acting as catalysts but only if the chemicals or chemicals
176	176	10 acting as catalysts effect a direct and immediate change upon
177	177	11 a graphic arts product. Beginning on July 1, 2017, graphic
178	178	12 arts machinery and equipment is included in the manufacturing
179	179	13 and assembling machinery and equipment exemption under
180	180	14 paragraph (18).
181	181	15 (7) Farm chemicals.
182	182	16 (8) Legal tender, currency, medallions, or gold or silver
183	183	17 coinage issued by the State of Illinois, the government of the
184	184	18 United States of America, or the government of any foreign
185	185	19 country, and bullion.
186	186	20 (9) Personal property purchased from a teacher-sponsored
187	187	21 student organization affiliated with an elementary or
188	188	22 secondary school located in Illinois.
189	189	23 (10) A motor vehicle that is used for automobile renting,
190	190	24 as defined in the Automobile Renting Occupation and Use Tax
191	191	25 Act.
192	192	26 (11) Farm machinery and equipment, both new and used,
193	193
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203	203	1 including that manufactured on special order, certified by the
204	204	2 purchaser to be used primarily for production agriculture or
205	205	3 State or federal agricultural programs, including individual
206	206	4 replacement parts for the machinery and equipment, including
207	207	5 machinery and equipment purchased for lease, and including
208	208	6 implements of husbandry defined in Section 1-130 of the
209	209	7 Illinois Vehicle Code, farm machinery and agricultural
210	210	8 chemical and fertilizer spreaders, and nurse wagons required
211	211	9 to be registered under Section 3-809 of the Illinois Vehicle
212	212	10 Code, but excluding other motor vehicles required to be
213	213	11 registered under the Illinois Vehicle Code. Horticultural
214	214	12 polyhouses or hoop houses used for propagating, growing, or
215	215	13 overwintering plants shall be considered farm machinery and
216	216	14 equipment under this item (11). Agricultural chemical tender
217	217	15 tanks and dry boxes shall include units sold separately from a
218	218	16 motor vehicle required to be licensed and units sold mounted
219	219	17 on a motor vehicle required to be licensed if the selling price
220	220	18 of the tender is separately stated.
221	221	19 Farm machinery and equipment shall include precision
222	222	20 farming equipment that is installed or purchased to be
223	223	21 installed on farm machinery and equipment including, but not
224	224	22 limited to, tractors, harvesters, sprayers, planters, seeders,
225	225	23 or spreaders. Precision farming equipment includes, but is not
226	226	24 limited to, soil testing sensors, computers, monitors,
227	227	25 software, global positioning and mapping systems, and other
228	228	26 such equipment.
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239	239	1 Farm machinery and equipment also includes computers,
240	240	2 sensors, software, and related equipment used primarily in the
241	241	3 computer-assisted operation of production agriculture
242	242	4 facilities, equipment, and activities such as, but not limited
243	243	5 to, the collection, monitoring, and correlation of animal and
244	244	6 crop data for the purpose of formulating animal diets and
245	245	7 agricultural chemicals. This item (11) is exempt from the
246	246	8 provisions of Section 3-90.
247	247	9 (12) Until June 30, 2013, fuel and petroleum products sold
248	248	10 to or used by an air common carrier, certified by the carrier
249	249	11 to be used for consumption, shipment, or storage in the
250	250	12 conduct of its business as an air common carrier, for a flight
251	251	13 destined for or returning from a location or locations outside
252	252	14 the United States without regard to previous or subsequent
253	253	15 domestic stopovers.
254	254	16 Beginning July 1, 2013, fuel and petroleum products sold
255	255	17 to or used by an air carrier, certified by the carrier to be
256	256	18 used for consumption, shipment, or storage in the conduct of
257	257	19 its business as an air common carrier, for a flight that (i) is
258	258	20 engaged in foreign trade or is engaged in trade between the
259	259	21 United States and any of its possessions and (ii) transports
260	260	22 at least one individual or package for hire from the city of
261	261	23 origination to the city of final destination on the same
262	262	24 aircraft, without regard to a change in the flight number of
263	263	25 that aircraft.
264	264	26 (13) Proceeds of mandatory service charges separately
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275	275	1 stated on customers' bills for the purchase and consumption of
276	276	2 food and beverages purchased at retail from a retailer, to the
277	277	3 extent that the proceeds of the service charge are in fact
278	278	4 turned over as tips or as a substitute for tips to the
279	279	5 employees who participate directly in preparing, serving,
280	280	6 hosting or cleaning up the food or beverage function with
281	281	7 respect to which the service charge is imposed.
282	282	8 (14) Until July 1, 2003, oil field exploration, drilling,
283	283	9 and production equipment, including (i) rigs and parts of
284	284	10 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
285	285	11 pipe and tubular goods, including casing and drill strings,
286	286	12 (iii) pumps and pump-jack units, (iv) storage tanks and flow
287	287	13 lines, (v) any individual replacement part for oil field
288	288	14 exploration, drilling, and production equipment, and (vi)
289	289	15 machinery and equipment purchased for lease; but excluding
290	290	16 motor vehicles required to be registered under the Illinois
291	291	17 Vehicle Code.
292	292	18 (15) Photoprocessing machinery and equipment, including
293	293	19 repair and replacement parts, both new and used, including
294	294	20 that manufactured on special order, certified by the purchaser
295	295	21 to be used primarily for photoprocessing, and including
296	296	22 photoprocessing machinery and equipment purchased for lease.
297	297	23 (16) Until July 1, 2028, coal and aggregate exploration,
298	298	24 mining, off-highway hauling, processing, maintenance, and
299	299	25 reclamation equipment, including replacement parts and
300	300	26 equipment, and including equipment purchased for lease, but
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311	311	1 excluding motor vehicles required to be registered under the
312	312	2 Illinois Vehicle Code. The changes made to this Section by
313	313	3 Public Act 97-767 apply on and after July 1, 2003, but no claim
314	314	4 for credit or refund is allowed on or after August 16, 2013
315	315	5 (the effective date of Public Act 98-456) for such taxes paid
316	316	6 during the period beginning July 1, 2003 and ending on August
317	317	7 16, 2013 (the effective date of Public Act 98-456).
318	318	8 (17) Until July 1, 2003, distillation machinery and
319	319	9 equipment, sold as a unit or kit, assembled or installed by the
320	320	10 retailer, certified by the user to be used only for the
321	321	11 production of ethyl alcohol that will be used for consumption
322	322	12 as motor fuel or as a component of motor fuel for the personal
323	323	13 use of the user, and not subject to sale or resale.
324	324	14 (18) Manufacturing and assembling machinery and equipment
325	325	15 used primarily in the process of manufacturing or assembling
326	326	16 tangible personal property for wholesale or retail sale or
327	327	17 lease, whether that sale or lease is made directly by the
328	328	18 manufacturer or by some other person, whether the materials
329	329	19 used in the process are owned by the manufacturer or some other
330	330	20 person, or whether that sale or lease is made apart from or as
331	331	21 an incident to the seller's engaging in the service occupation
332	332	22 of producing machines, tools, dies, jigs, patterns, gauges, or
333	333	23 other similar items of no commercial value on special order
334	334	24 for a particular purchaser. The exemption provided by this
335	335	25 paragraph (18) includes production related tangible personal
336	336	26 property, as defined in Section 3-50, purchased on or after
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347	347	1 July 1, 2019. The exemption provided by this paragraph (18)
348	348	2 does not include machinery and equipment used in (i) the
349	349	3 generation of electricity for wholesale or retail sale; (ii)
350	350	4 the generation or treatment of natural or artificial gas for
351	351	5 wholesale or retail sale that is delivered to customers
352	352	6 through pipes, pipelines, or mains; or (iii) the treatment of
353	353	7 water for wholesale or retail sale that is delivered to
354	354	8 customers through pipes, pipelines, or mains. The provisions
355	355	9 of Public Act 98-583 are declaratory of existing law as to the
356	356	10 meaning and scope of this exemption. Beginning on July 1,
357	357	11 2017, the exemption provided by this paragraph (18) includes,
358	358	12 but is not limited to, graphic arts machinery and equipment,
359	359	13 as defined in paragraph (6) of this Section.
360	360	14 (19) Personal property delivered to a purchaser or
361	361	15 purchaser's donee inside Illinois when the purchase order for
362	362	16 that personal property was received by a florist located
363	363	17 outside Illinois who has a florist located inside Illinois
364	364	18 deliver the personal property.
365	365	19 (20) Semen used for artificial insemination of livestock
366	366	20 for direct agricultural production.
367	367	21 (21) Horses, or interests in horses, registered with and
368	368	22 meeting the requirements of any of the Arabian Horse Club
369	369	23 Registry of America, Appaloosa Horse Club, American Quarter
370	370	24 Horse Association, United States Trotting Association, or
371	371	25 Jockey Club, as appropriate, used for purposes of breeding or
372	372	26 racing for prizes. This item (21) is exempt from the
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379	379
380	380
381	381	SB1350- 9 -LRB103 27798 HLH 54176 b SB1350 - 9 - LRB103 27798 HLH 54176 b
382	382	SB1350 - 9 - LRB103 27798 HLH 54176 b
383	383	1 provisions of Section 3-90, and the exemption provided for
384	384	2 under this item (21) applies for all periods beginning May 30,
385	385	3 1995, but no claim for credit or refund is allowed on or after
386	386	4 January 1, 2008 for such taxes paid during the period
387	387	5 beginning May 30, 2000 and ending on January 1, 2008.
388	388	6 (22) Computers and communications equipment utilized for
389	389	7 any hospital purpose and equipment used in the diagnosis,
390	390	8 analysis, or treatment of hospital patients purchased by a
391	391	9 lessor who leases the equipment, under a lease of one year or
392	392	10 longer executed or in effect at the time the lessor would
393	393	11 otherwise be subject to the tax imposed by this Act, to a
394	394	12 hospital that has been issued an active tax exemption
395	395	13 identification number by the Department under Section 1g of
396	396	14 the Retailers' Occupation Tax Act. If the equipment is leased
397	397	15 in a manner that does not qualify for this exemption or is used
398	398	16 in any other non-exempt manner, the lessor shall be liable for
399	399	17 the tax imposed under this Act or the Service Use Tax Act, as
400	400	18 the case may be, based on the fair market value of the property
401	401	19 at the time the non-qualifying use occurs. No lessor shall
402	402	20 collect or attempt to collect an amount (however designated)
403	403	21 that purports to reimburse that lessor for the tax imposed by
404	404	22 this Act or the Service Use Tax Act, as the case may be, if the
405	405	23 tax has not been paid by the lessor. If a lessor improperly
406	406	24 collects any such amount from the lessee, the lessee shall
407	407	25 have a legal right to claim a refund of that amount from the
408	408	26 lessor. If, however, that amount is not refunded to the lessee
409	409
410	410
411	411
412	412
413	413
414	414	SB1350 - 9 - LRB103 27798 HLH 54176 b
415	415
416	416
417	417	SB1350- 10 -LRB103 27798 HLH 54176 b SB1350 - 10 - LRB103 27798 HLH 54176 b
418	418	SB1350 - 10 - LRB103 27798 HLH 54176 b
419	419	1 for any reason, the lessor is liable to pay that amount to the
420	420	2 Department.
421	421	3 (23) Personal property purchased by a lessor who leases
422	422	4 the property, under a lease of one year or longer executed or
423	423	5 in effect at the time the lessor would otherwise be subject to
424	424	6 the tax imposed by this Act, to a governmental body that has
425	425	7 been issued an active sales tax exemption identification
426	426	8 number by the Department under Section 1g of the Retailers'
427	427	9 Occupation Tax Act. If the property is leased in a manner that
428	428	10 does not qualify for this exemption or used in any other
429	429	11 non-exempt manner, the lessor shall be liable for the tax
430	430	12 imposed under this Act or the Service Use Tax Act, as the case
431	431	13 may be, based on the fair market value of the property at the
432	432	14 time the non-qualifying use occurs. No lessor shall collect or
433	433	15 attempt to collect an amount (however designated) that
434	434	16 purports to reimburse that lessor for the tax imposed by this
435	435	17 Act or the Service Use Tax Act, as the case may be, if the tax
436	436	18 has not been paid by the lessor. If a lessor improperly
437	437	19 collects any such amount from the lessee, the lessee shall
438	438	20 have a legal right to claim a refund of that amount from the
439	439	21 lessor. If, however, that amount is not refunded to the lessee
440	440	22 for any reason, the lessor is liable to pay that amount to the
441	441	23 Department.
442	442	24 (24) Beginning with taxable years ending on or after
443	443	25 December 31, 1995 and ending with taxable years ending on or
444	444	26 before December 31, 2004, personal property that is donated
445	445
446	446
447	447
448	448
449	449
450	450	SB1350 - 10 - LRB103 27798 HLH 54176 b
451	451
452	452
453	453	SB1350- 11 -LRB103 27798 HLH 54176 b SB1350 - 11 - LRB103 27798 HLH 54176 b
454	454	SB1350 - 11 - LRB103 27798 HLH 54176 b
455	455	1 for disaster relief to be used in a State or federally declared
456	456	2 disaster area in Illinois or bordering Illinois by a
457	457	3 manufacturer or retailer that is registered in this State to a
458	458	4 corporation, society, association, foundation, or institution
459	459	5 that has been issued a sales tax exemption identification
460	460	6 number by the Department that assists victims of the disaster
461	461	7 who reside within the declared disaster area.
462	462	8 (25) Beginning with taxable years ending on or after
463	463	9 December 31, 1995 and ending with taxable years ending on or
464	464	10 before December 31, 2004, personal property that is used in
465	465	11 the performance of infrastructure repairs in this State,
466	466	12 including but not limited to municipal roads and streets,
467	467	13 access roads, bridges, sidewalks, waste disposal systems,
468	468	14 water and sewer line extensions, water distribution and
469	469	15 purification facilities, storm water drainage and retention
470	470	16 facilities, and sewage treatment facilities, resulting from a
471	471	17 State or federally declared disaster in Illinois or bordering
472	472	18 Illinois when such repairs are initiated on facilities located
473	473	19 in the declared disaster area within 6 months after the
474	474	20 disaster.
475	475	21 (26) Beginning July 1, 1999, game or game birds purchased
476	476	22 at a "game breeding and hunting preserve area" as that term is
477	477	23 used in the Wildlife Code. This paragraph is exempt from the
478	478	24 provisions of Section 3-90.
479	479	25 (27) A motor vehicle, as that term is defined in Section
480	480	26 1-146 of the Illinois Vehicle Code, that is donated to a
481	481
482	482
483	483
484	484
485	485
486	486	SB1350 - 11 - LRB103 27798 HLH 54176 b
487	487
488	488
489	489	SB1350- 12 -LRB103 27798 HLH 54176 b SB1350 - 12 - LRB103 27798 HLH 54176 b
490	490	SB1350 - 12 - LRB103 27798 HLH 54176 b
491	491	1 corporation, limited liability company, society, association,
492	492	2 foundation, or institution that is determined by the
493	493	3 Department to be organized and operated exclusively for
494	494	4 educational purposes. For purposes of this exemption, "a
495	495	5 corporation, limited liability company, society, association,
496	496	6 foundation, or institution organized and operated exclusively
497	497	7 for educational purposes" means all tax-supported public
498	498	8 schools, private schools that offer systematic instruction in
499	499	9 useful branches of learning by methods common to public
500	500	10 schools and that compare favorably in their scope and
501	501	11 intensity with the course of study presented in tax-supported
502	502	12 schools, and vocational or technical schools or institutes
503	503	13 organized and operated exclusively to provide a course of
504	504	14 study of not less than 6 weeks duration and designed to prepare
505	505	15 individuals to follow a trade or to pursue a manual,
506	506	16 technical, mechanical, industrial, business, or commercial
507	507	17 occupation.
508	508	18 (28) Beginning January 1, 2000, personal property,
509	509	19 including food, purchased through fundraising events for the
510	510	20 benefit of a public or private elementary or secondary school,
511	511	21 a group of those schools, or one or more school districts if
512	512	22 the events are sponsored by an entity recognized by the school
513	513	23 district that consists primarily of volunteers and includes
514	514	24 parents and teachers of the school children. This paragraph
515	515	25 does not apply to fundraising events (i) for the benefit of
516	516	26 private home instruction or (ii) for which the fundraising
517	517
518	518
519	519
520	520
521	521
522	522	SB1350 - 12 - LRB103 27798 HLH 54176 b
523	523
524	524
525	525	SB1350- 13 -LRB103 27798 HLH 54176 b SB1350 - 13 - LRB103 27798 HLH 54176 b
526	526	SB1350 - 13 - LRB103 27798 HLH 54176 b
527	527	1 entity purchases the personal property sold at the events from
528	528	2 another individual or entity that sold the property for the
529	529	3 purpose of resale by the fundraising entity and that profits
530	530	4 from the sale to the fundraising entity. This paragraph is
531	531	5 exempt from the provisions of Section 3-90.
532	532	6 (29) Beginning January 1, 2000 and through December 31,
533	533	7 2001, new or used automatic vending machines that prepare and
534	534	8 serve hot food and beverages, including coffee, soup, and
535	535	9 other items, and replacement parts for these machines.
536	536	10 Beginning January 1, 2002 and through June 30, 2003, machines
537	537	11 and parts for machines used in commercial, coin-operated
538	538	12 amusement and vending business if a use or occupation tax is
539	539	13 paid on the gross receipts derived from the use of the
540	540	14 commercial, coin-operated amusement and vending machines. This
541	541	15 paragraph is exempt from the provisions of Section 3-90.
542	542	16 (30) Beginning January 1, 2001 and through June 30, 2016,
543	543	17 food for human consumption that is to be consumed off the
544	544	18 premises where it is sold (other than alcoholic beverages,
545	545	19 soft drinks, and food that has been prepared for immediate
546	546	20 consumption) and prescription and nonprescription medicines,
547	547	21 drugs, medical appliances, and insulin, urine testing
548	548	22 materials, syringes, and needles used by diabetics, for human
549	549	23 use, when purchased for use by a person receiving medical
550	550	24 assistance under Article V of the Illinois Public Aid Code who
551	551	25 resides in a licensed long-term care facility, as defined in
552	552	26 the Nursing Home Care Act, or in a licensed facility as defined
553	553
554	554
555	555
556	556
557	557
558	558	SB1350 - 13 - LRB103 27798 HLH 54176 b
559	559
560	560
561	561	SB1350- 14 -LRB103 27798 HLH 54176 b SB1350 - 14 - LRB103 27798 HLH 54176 b
562	562	SB1350 - 14 - LRB103 27798 HLH 54176 b
563	563	1 in the ID/DD Community Care Act, the MC/DD Act, or the
564	564	2 Specialized Mental Health Rehabilitation Act of 2013.
565	565	3 (31) Beginning on August 2, 2001 (the effective date of
566	566	4 Public Act 92-227), computers and communications equipment
567	567	5 utilized for any hospital purpose and equipment used in the
568	568	6 diagnosis, analysis, or treatment of hospital patients
569	569	7 purchased by a lessor who leases the equipment, under a lease
570	570	8 of one year or longer executed or in effect at the time the
571	571	9 lessor would otherwise be subject to the tax imposed by this
572	572	10 Act, to a hospital that has been issued an active tax exemption
573	573	11 identification number by the Department under Section 1g of
574	574	12 the Retailers' Occupation Tax Act. If the equipment is leased
575	575	13 in a manner that does not qualify for this exemption or is used
576	576	14 in any other nonexempt manner, the lessor shall be liable for
577	577	15 the tax imposed under this Act or the Service Use Tax Act, as
578	578	16 the case may be, based on the fair market value of the property
579	579	17 at the time the nonqualifying use occurs. No lessor shall
580	580	18 collect or attempt to collect an amount (however designated)
581	581	19 that purports to reimburse that lessor for the tax imposed by
582	582	20 this Act or the Service Use Tax Act, as the case may be, if the
583	583	21 tax has not been paid by the lessor. If a lessor improperly
584	584	22 collects any such amount from the lessee, the lessee shall
585	585	23 have a legal right to claim a refund of that amount from the
586	586	24 lessor. If, however, that amount is not refunded to the lessee
587	587	25 for any reason, the lessor is liable to pay that amount to the
588	588	26 Department. This paragraph is exempt from the provisions of
589	589
590	590
591	591
592	592
593	593
594	594	SB1350 - 14 - LRB103 27798 HLH 54176 b
595	595
596	596
597	597	SB1350- 15 -LRB103 27798 HLH 54176 b SB1350 - 15 - LRB103 27798 HLH 54176 b
598	598	SB1350 - 15 - LRB103 27798 HLH 54176 b
599	599	1 Section 3-90.
600	600	2 (32) Beginning on August 2, 2001 (the effective date of
601	601	3 Public Act 92-227), personal property purchased by a lessor
602	602	4 who leases the property, under a lease of one year or longer
603	603	5 executed or in effect at the time the lessor would otherwise be
604	604	6 subject to the tax imposed by this Act, to a governmental body
605	605	7 that has been issued an active sales tax exemption
606	606	8 identification number by the Department under Section 1g of
607	607	9 the Retailers' Occupation Tax Act. If the property is leased
608	608	10 in a manner that does not qualify for this exemption or used in
609	609	11 any other nonexempt manner, the lessor shall be liable for the
610	610	12 tax imposed under this Act or the Service Use Tax Act, as the
611	611	13 case may be, based on the fair market value of the property at
612	612	14 the time the nonqualifying use occurs. No lessor shall collect
613	613	15 or attempt to collect an amount (however designated) that
614	614	16 purports to reimburse that lessor for the tax imposed by this
615	615	17 Act or the Service Use Tax Act, as the case may be, if the tax
616	616	18 has not been paid by the lessor. If a lessor improperly
617	617	19 collects any such amount from the lessee, the lessee shall
618	618	20 have a legal right to claim a refund of that amount from the
619	619	21 lessor. If, however, that amount is not refunded to the lessee
620	620	22 for any reason, the lessor is liable to pay that amount to the
621	621	23 Department. This paragraph is exempt from the provisions of
622	622	24 Section 3-90.
623	623	25 (33) On and after July 1, 2003 and through June 30, 2004,
624	624	26 the use in this State of motor vehicles of the second division
625	625
626	626
627	627
628	628
629	629
630	630	SB1350 - 15 - LRB103 27798 HLH 54176 b
631	631
632	632
633	633	SB1350- 16 -LRB103 27798 HLH 54176 b SB1350 - 16 - LRB103 27798 HLH 54176 b
634	634	SB1350 - 16 - LRB103 27798 HLH 54176 b
635	635	1 with a gross vehicle weight in excess of 8,000 pounds and that
636	636	2 are subject to the commercial distribution fee imposed under
637	637	3 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
638	638	4 July 1, 2004 and through June 30, 2005, the use in this State
639	639	5 of motor vehicles of the second division: (i) with a gross
640	640	6 vehicle weight rating in excess of 8,000 pounds; (ii) that are
641	641	7 subject to the commercial distribution fee imposed under
642	642	8 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
643	643	9 are primarily used for commercial purposes. Through June 30,
644	644	10 2005, this exemption applies to repair and replacement parts
645	645	11 added after the initial purchase of such a motor vehicle if
646	646	12 that motor vehicle is used in a manner that would qualify for
647	647	13 the rolling stock exemption otherwise provided for in this
648	648	14 Act. For purposes of this paragraph, the term "used for
649	649	15 commercial purposes" means the transportation of persons or
650	650	16 property in furtherance of any commercial or industrial
651	651	17 enterprise, whether for-hire or not.
652	652	18 (34) Beginning January 1, 2008, tangible personal property
653	653	19 used in the construction or maintenance of a community water
654	654	20 supply, as defined under Section 3.145 of the Environmental
655	655	21 Protection Act, that is operated by a not-for-profit
656	656	22 corporation that holds a valid water supply permit issued
657	657	23 under Title IV of the Environmental Protection Act. This
658	658	24 paragraph is exempt from the provisions of Section 3-90.
659	659	25 (35) Beginning January 1, 2010 and continuing through
660	660	26 December 31, 2024, materials, parts, equipment, components,
661	661
662	662
663	663
664	664
665	665
666	666	SB1350 - 16 - LRB103 27798 HLH 54176 b
667	667
668	668
669	669	SB1350- 17 -LRB103 27798 HLH 54176 b SB1350 - 17 - LRB103 27798 HLH 54176 b
670	670	SB1350 - 17 - LRB103 27798 HLH 54176 b
671	671	1 and furnishings incorporated into or upon an aircraft as part
672	672	2 of the modification, refurbishment, completion, replacement,
673	673	3 repair, or maintenance of the aircraft. This exemption
674	674	4 includes consumable supplies used in the modification,
675	675	5 refurbishment, completion, replacement, repair, and
676	676	6 maintenance of aircraft, but excludes any materials, parts,
677	677	7 equipment, components, and consumable supplies used in the
678	678	8 modification, replacement, repair, and maintenance of aircraft
679	679	9 engines or power plants, whether such engines or power plants
680	680	10 are installed or uninstalled upon any such aircraft.
681	681	11 "Consumable supplies" include, but are not limited to,
682	682	12 adhesive, tape, sandpaper, general purpose lubricants,
683	683	13 cleaning solution, latex gloves, and protective films. This
684	684	14 exemption applies only to the use of qualifying tangible
685	685	15 personal property by persons who modify, refurbish, complete,
686	686	16 repair, replace, or maintain aircraft and who (i) hold an Air
687	687	17 Agency Certificate and are empowered to operate an approved
688	688	18 repair station by the Federal Aviation Administration, (ii)
689	689	19 have a Class IV Rating, and (iii) conduct operations in
690	690	20 accordance with Part 145 of the Federal Aviation Regulations.
691	691	21 The exemption does not include aircraft operated by a
692	692	22 commercial air carrier providing scheduled passenger air
693	693	23 service pursuant to authority issued under Part 121 or Part
694	694	24 129 of the Federal Aviation Regulations. The changes made to
695	695	25 this paragraph (35) by Public Act 98-534 are declarative of
696	696	26 existing law. It is the intent of the General Assembly that the
697	697
698	698
699	699
700	700
701	701
702	702	SB1350 - 17 - LRB103 27798 HLH 54176 b
703	703
704	704
705	705	SB1350- 18 -LRB103 27798 HLH 54176 b SB1350 - 18 - LRB103 27798 HLH 54176 b
706	706	SB1350 - 18 - LRB103 27798 HLH 54176 b
707	707	1 exemption under this paragraph (35) applies continuously from
708	708	2 January 1, 2010 through December 31, 2024; however, no claim
709	709	3 for credit or refund is allowed for taxes paid as a result of
710	710	4 the disallowance of this exemption on or after January 1, 2015
711	711	5 and prior to February 5, 2020 (the effective date of Public Act
712	712	6 101-629) this amendatory Act of the 101st General Assembly.
713	713	7 (36) Tangible personal property purchased by a
714	714	8 public-facilities corporation, as described in Section
715	715	9 11-65-10 of the Illinois Municipal Code, for purposes of
716	716	10 constructing or furnishing a municipal convention hall, but
717	717	11 only if the legal title to the municipal convention hall is
718	718	12 transferred to the municipality without any further
719	719	13 consideration by or on behalf of the municipality at the time
720	720	14 of the completion of the municipal convention hall or upon the
721	721	15 retirement or redemption of any bonds or other debt
722	722	16 instruments issued by the public-facilities corporation in
723	723	17 connection with the development of the municipal convention
724	724	18 hall. This exemption includes existing public-facilities
725	725	19 corporations as provided in Section 11-65-25 of the Illinois
726	726	20 Municipal Code. This paragraph is exempt from the provisions
727	727	21 of Section 3-90.
728	728	22 (37) Beginning January 1, 2017 and through December 31,
729	729	23 2026, menstrual pads, tampons, and menstrual cups.
730	730	24 (38) Merchandise that is subject to the Rental Purchase
731	731	25 Agreement Occupation and Use Tax. The purchaser must certify
732	732	26 that the item is purchased to be rented subject to a rental
733	733
734	734
735	735
736	736
737	737
738	738	SB1350 - 18 - LRB103 27798 HLH 54176 b
739	739
740	740
741	741	SB1350- 19 -LRB103 27798 HLH 54176 b SB1350 - 19 - LRB103 27798 HLH 54176 b
742	742	SB1350 - 19 - LRB103 27798 HLH 54176 b
743	743	1 purchase agreement, as defined in the Rental Purchase
744	744	2 Agreement Act, and provide proof of registration under the
745	745	3 Rental Purchase Agreement Occupation and Use Tax Act. This
746	746	4 paragraph is exempt from the provisions of Section 3-90.
747	747	5 (39) Tangible personal property purchased by a purchaser
748	748	6 who is exempt from the tax imposed by this Act by operation of
749	749	7 federal law. This paragraph is exempt from the provisions of
750	750	8 Section 3-90.
751	751	9 (40) Qualified tangible personal property used in the
752	752	10 construction or operation of a data center that has been
753	753	11 granted a certificate of exemption by the Department of
754	754	12 Commerce and Economic Opportunity, whether that tangible
755	755	13 personal property is purchased by the owner, operator, or
756	756	14 tenant of the data center or by a contractor or subcontractor
757	757	15 of the owner, operator, or tenant. Data centers that would
758	758	16 have qualified for a certificate of exemption prior to January
759	759	17 1, 2020 had Public Act 101-31 been in effect may apply for and
760	760	18 obtain an exemption for subsequent purchases of computer
761	761	19 equipment or enabling software purchased or leased to upgrade,
762	762	20 supplement, or replace computer equipment or enabling software
763	763	21 purchased or leased in the original investment that would have
764	764	22 qualified.
765	765	23 The Department of Commerce and Economic Opportunity shall
766	766	24 grant a certificate of exemption under this item (40) to
767	767	25 qualified data centers as defined by Section 605-1025 of the
768	768	26 Department of Commerce and Economic Opportunity Law of the
769	769
770	770
771	771
772	772
773	773
774	774	SB1350 - 19 - LRB103 27798 HLH 54176 b
775	775
776	776
777	777	SB1350- 20 -LRB103 27798 HLH 54176 b SB1350 - 20 - LRB103 27798 HLH 54176 b
778	778	SB1350 - 20 - LRB103 27798 HLH 54176 b
779	779	1 Civil Administrative Code of Illinois.
780	780	2 For the purposes of this item (40):
781	781	3 "Data center" means a building or a series of
782	782	4 buildings rehabilitated or constructed to house working
783	783	5 servers in one physical location or multiple sites within
784	784	6 the State of Illinois.
785	785	7 "Qualified tangible personal property" means:
786	786	8 electrical systems and equipment; climate control and
787	787	9 chilling equipment and systems; mechanical systems and
788	788	10 equipment; monitoring and secure systems; emergency
789	789	11 generators; hardware; computers; servers; data storage
790	790	12 devices; network connectivity equipment; racks; cabinets;
791	791	13 telecommunications cabling infrastructure; raised floor
792	792	14 systems; peripheral components or systems; software;
793	793	15 mechanical, electrical, or plumbing systems; battery
794	794	16 systems; cooling systems and towers; temperature control
795	795	17 systems; other cabling; and other data center
796	796	18 infrastructure equipment and systems necessary to operate
797	797	19 qualified tangible personal property, including fixtures;
798	798	20 and component parts of any of the foregoing, including
799	799	21 installation, maintenance, repair, refurbishment, and
800	800	22 replacement of qualified tangible personal property to
801	801	23 generate, transform, transmit, distribute, or manage
802	802	24 electricity necessary to operate qualified tangible
803	803	25 personal property; and all other tangible personal
804	804	26 property that is essential to the operations of a computer
805	805
806	806
807	807
808	808
809	809
810	810	SB1350 - 20 - LRB103 27798 HLH 54176 b
811	811
812	812
813	813	SB1350- 21 -LRB103 27798 HLH 54176 b SB1350 - 21 - LRB103 27798 HLH 54176 b
814	814	SB1350 - 21 - LRB103 27798 HLH 54176 b
815	815	1 data center. The term "qualified tangible personal
816	816	2 property" also includes building materials physically
817	817	3 incorporated in to the qualifying data center. To document
818	818	4 the exemption allowed under this Section, the retailer
819	819	5 must obtain from the purchaser a copy of the certificate
820	820	6 of eligibility issued by the Department of Commerce and
821	821	7 Economic Opportunity.
822	822	8 This item (40) is exempt from the provisions of Section
823	823	9 3-90.
824	824	10 (41) Beginning July 1, 2022, breast pumps, breast pump
825	825	11 collection and storage supplies, and breast pump kits. This
826	826	12 item (41) is exempt from the provisions of Section 3-90. As
827	827	13 used in this item (41):
828	828	14 "Breast pump" means an electrically controlled or
829	829	15 manually controlled pump device designed or marketed to be
830	830	16 used to express milk from a human breast during lactation,
831	831	17 including the pump device and any battery, AC adapter, or
832	832	18 other power supply unit that is used to power the pump
833	833	19 device and is packaged and sold with the pump device at the
834	834	20 time of sale.
835	835	21 "Breast pump collection and storage supplies" means
836	836	22 items of tangible personal property designed or marketed
837	837	23 to be used in conjunction with a breast pump to collect
838	838	24 milk expressed from a human breast and to store collected
839	839	25 milk until it is ready for consumption.
840	840	26 "Breast pump collection and storage supplies"
841	841
842	842
843	843
844	844
845	845
846	846	SB1350 - 21 - LRB103 27798 HLH 54176 b
847	847
848	848
849	849	SB1350- 22 -LRB103 27798 HLH 54176 b SB1350 - 22 - LRB103 27798 HLH 54176 b
850	850	SB1350 - 22 - LRB103 27798 HLH 54176 b
851	851	1 includes, but is not limited to: breast shields and breast
852	852	2 shield connectors; breast pump tubes and tubing adapters;
853	853	3 breast pump valves and membranes; backflow protectors and
854	854	4 backflow protector adaptors; bottles and bottle caps
855	855	5 specific to the operation of the breast pump; and breast
856	856	6 milk storage bags.
857	857	7 "Breast pump collection and storage supplies" does not
858	858	8 include: (1) bottles and bottle caps not specific to the
859	859	9 operation of the breast pump; (2) breast pump travel bags
860	860	10 and other similar carrying accessories, including ice
861	861	11 packs, labels, and other similar products; (3) breast pump
862	862	12 cleaning supplies; (4) nursing bras, bra pads, breast
863	863	13 shells, and other similar products; and (5) creams,
864	864	14 ointments, and other similar products that relieve
865	865	15 breastfeeding-related symptoms or conditions of the
866	866	16 breasts or nipples, unless sold as part of a breast pump
867	867	17 kit that is pre-packaged by the breast pump manufacturer
868	868	18 or distributor.
869	869	19 "Breast pump kit" means a kit that: (1) contains no
870	870	20 more than a breast pump, breast pump collection and
871	871	21 storage supplies, a rechargeable battery for operating the
872	872	22 breast pump, a breastmilk cooler, bottle stands, ice
873	873	23 packs, and a breast pump carrying case; and (2) is
874	874	24 pre-packaged as a breast pump kit by the breast pump
875	875	25 manufacturer or distributor.
876	876	26 (42) (41) Tangible personal property sold by or on behalf
877	877
878	878
879	879
880	880
881	881
882	882	SB1350 - 22 - LRB103 27798 HLH 54176 b
883	883
884	884
885	885	SB1350- 23 -LRB103 27798 HLH 54176 b SB1350 - 23 - LRB103 27798 HLH 54176 b
886	886	SB1350 - 23 - LRB103 27798 HLH 54176 b
887	887	1 of the State Treasurer pursuant to the Revised Uniform
888	888	2 Unclaimed Property Act. This item (42) (41) is exempt from the
889	889	3 provisions of Section 3-90.
890	890	4 (43) Qualified tangible personal property used in the
891	891	5 construction or operation of a mega project for which a
892	892	6 certificate has been issued by the Department under Division
893	893	7 22 of Article 10 of the Property Tax Code, whether that
894	894	8 tangible personal property is purchased by the owner,
895	895	9 operator, or tenant of the mega project or by a contractor or
896	896	10 subcontractor of the owner, operator, or tenant.
897	897	11 As used in this item (43):
898	898	12 "Facility" means a building or series of buildings.
899	899	13 "Mega project" means a facility that is rehabilitated or
900	900	14 constructed as described in Division 22 of Article 10 of the
901	901	15 Property Tax Code.
902	902	16 "Qualified tangible personal property" means: electrical
903	903	17 systems and equipment; climate control and chilling equipment
904	904	18 and systems; mechanical systems and equipment; monitoring and
905	905	19 secure systems; emergency generators; hardware; computers;
906	906	20 servers; data storage devices; network connectivity equipment;
907	907	21 racks; cabinets; telecommunications cabling infrastructure;
908	908	22 raised floor systems; peripheral components or systems;
909	909	23 software; mechanical, electrical, or plumbing systems; battery
910	910	24 systems; cooling systems and towers; temperature control
911	911	25 systems; other cabling; and other data center infrastructure
912	912	26 equipment and systems necessary to operate qualified tangible
913	913
914	914
915	915
916	916
917	917
918	918	SB1350 - 23 - LRB103 27798 HLH 54176 b
919	919
920	920
921	921	SB1350- 24 -LRB103 27798 HLH 54176 b SB1350 - 24 - LRB103 27798 HLH 54176 b
922	922	SB1350 - 24 - LRB103 27798 HLH 54176 b
923	923	1 personal property, including fixtures; and component parts of
924	924	2 those items, including installation, maintenance, repair,
925	925	3 refurbishment, and replacement of qualified tangible personal
926	926	4 property to generate, transform, transmit, distribute, or
927	927	5 manage electricity necessary to operate qualified tangible
928	928	6 personal property; and all other tangible personal property
929	929	7 that is essential to the operations of a mega project. The term
930	930	8 "qualified tangible personal property" also includes building
931	931	9 materials to be incorporated into the mega project. To
932	932	10 document the exemption allowed under this Section, the
933	933	11 retailer, contractor or subcontractor or supplier must obtain
934	934	12 from the purchaser a copy of the certificate issued by the
935	935	13 Department of Revenue for the mega project as described and
936	936	14 defined in Division 22 of Article 10 of the Property Tax Code.
937	937	15 This item (43) is exempt from the provisions of Section
938	938	16 3-90.
939	939	17 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
940	940	18 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
941	941	19 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
942	942	20 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
943	943	21 eff. 5-27-22; revised 8-1-22.)
944	944	22 Section 10. The Service Use Tax Act is amended by changing
945	945	23 Section 3-5 as follows:
946	946	24 (35 ILCS 110/3-5)
947	947
948	948
949	949
950	950
951	951
952	952	SB1350 - 24 - LRB103 27798 HLH 54176 b
953	953
954	954
955	955	SB1350- 25 -LRB103 27798 HLH 54176 b SB1350 - 25 - LRB103 27798 HLH 54176 b
956	956	SB1350 - 25 - LRB103 27798 HLH 54176 b
957	957	1 Sec. 3-5. Exemptions. Use of the following tangible
958	958	2 personal property is exempt from the tax imposed by this Act:
959	959	3 (1) Personal property purchased from a corporation,
960	960	4 society, association, foundation, institution, or
961	961	5 organization, other than a limited liability company, that is
962	962	6 organized and operated as a not-for-profit service enterprise
963	963	7 for the benefit of persons 65 years of age or older if the
964	964	8 personal property was not purchased by the enterprise for the
965	965	9 purpose of resale by the enterprise.
966	966	10 (2) Personal property purchased by a non-profit Illinois
967	967	11 county fair association for use in conducting, operating, or
968	968	12 promoting the county fair.
969	969	13 (3) Personal property purchased by a not-for-profit arts
970	970	14 or cultural organization that establishes, by proof required
971	971	15 by the Department by rule, that it has received an exemption
972	972	16 under Section 501(c)(3) of the Internal Revenue Code and that
973	973	17 is organized and operated primarily for the presentation or
974	974	18 support of arts or cultural programming, activities, or
975	975	19 services. These organizations include, but are not limited to,
976	976	20 music and dramatic arts organizations such as symphony
977	977	21 orchestras and theatrical groups, arts and cultural service
978	978	22 organizations, local arts councils, visual arts organizations,
979	979	23 and media arts organizations. On and after July 1, 2001 (the
980	980	24 effective date of Public Act 92-35), however, an entity
981	981	25 otherwise eligible for this exemption shall not make tax-free
982	982	26 purchases unless it has an active identification number issued
983	983
984	984
985	985
986	986
987	987
988	988	SB1350 - 25 - LRB103 27798 HLH 54176 b
989	989
990	990
991	991	SB1350- 26 -LRB103 27798 HLH 54176 b SB1350 - 26 - LRB103 27798 HLH 54176 b
992	992	SB1350 - 26 - LRB103 27798 HLH 54176 b
993	993	1 by the Department.
994	994	2 (4) Legal tender, currency, medallions, or gold or silver
995	995	3 coinage issued by the State of Illinois, the government of the
996	996	4 United States of America, or the government of any foreign
997	997	5 country, and bullion.
998	998	6 (5) Until July 1, 2003 and beginning again on September 1,
999	999	7 2004 through August 30, 2014, graphic arts machinery and
1000	1000	8 equipment, including repair and replacement parts, both new
1001	1001	9 and used, and including that manufactured on special order or
1002	1002	10 purchased for lease, certified by the purchaser to be used
1003	1003	11 primarily for graphic arts production. Equipment includes
1004	1004	12 chemicals or chemicals acting as catalysts but only if the
1005	1005	13 chemicals or chemicals acting as catalysts effect a direct and
1006	1006	14 immediate change upon a graphic arts product. Beginning on
1007	1007	15 July 1, 2017, graphic arts machinery and equipment is included
1008	1008	16 in the manufacturing and assembling machinery and equipment
1009	1009	17 exemption under Section 2 of this Act.
1010	1010	18 (6) Personal property purchased from a teacher-sponsored
1011	1011	19 student organization affiliated with an elementary or
1012	1012	20 secondary school located in Illinois.
1013	1013	21 (7) Farm machinery and equipment, both new and used,
1014	1014	22 including that manufactured on special order, certified by the
1015	1015	23 purchaser to be used primarily for production agriculture or
1016	1016	24 State or federal agricultural programs, including individual
1017	1017	25 replacement parts for the machinery and equipment, including
1018	1018	26 machinery and equipment purchased for lease, and including
1019	1019
1020	1020
1021	1021
1022	1022
1023	1023
1024	1024	SB1350 - 26 - LRB103 27798 HLH 54176 b
1025	1025
1026	1026
1027	1027	SB1350- 27 -LRB103 27798 HLH 54176 b SB1350 - 27 - LRB103 27798 HLH 54176 b
1028	1028	SB1350 - 27 - LRB103 27798 HLH 54176 b
1029	1029	1 implements of husbandry defined in Section 1-130 of the
1030	1030	2 Illinois Vehicle Code, farm machinery and agricultural
1031	1031	3 chemical and fertilizer spreaders, and nurse wagons required
1032	1032	4 to be registered under Section 3-809 of the Illinois Vehicle
1033	1033	5 Code, but excluding other motor vehicles required to be
1034	1034	6 registered under the Illinois Vehicle Code. Horticultural
1035	1035	7 polyhouses or hoop houses used for propagating, growing, or
1036	1036	8 overwintering plants shall be considered farm machinery and
1037	1037	9 equipment under this item (7). Agricultural chemical tender
1038	1038	10 tanks and dry boxes shall include units sold separately from a
1039	1039	11 motor vehicle required to be licensed and units sold mounted
1040	1040	12 on a motor vehicle required to be licensed if the selling price
1041	1041	13 of the tender is separately stated.
1042	1042	14 Farm machinery and equipment shall include precision
1043	1043	15 farming equipment that is installed or purchased to be
1044	1044	16 installed on farm machinery and equipment including, but not
1045	1045	17 limited to, tractors, harvesters, sprayers, planters, seeders,
1046	1046	18 or spreaders. Precision farming equipment includes, but is not
1047	1047	19 limited to, soil testing sensors, computers, monitors,
1048	1048	20 software, global positioning and mapping systems, and other
1049	1049	21 such equipment.
1050	1050	22 Farm machinery and equipment also includes computers,
1051	1051	23 sensors, software, and related equipment used primarily in the
1052	1052	24 computer-assisted operation of production agriculture
1053	1053	25 facilities, equipment, and activities such as, but not limited
1054	1054	26 to, the collection, monitoring, and correlation of animal and
1055	1055
1056	1056
1057	1057
1058	1058
1059	1059
1060	1060	SB1350 - 27 - LRB103 27798 HLH 54176 b
1061	1061
1062	1062
1063	1063	SB1350- 28 -LRB103 27798 HLH 54176 b SB1350 - 28 - LRB103 27798 HLH 54176 b
1064	1064	SB1350 - 28 - LRB103 27798 HLH 54176 b
1065	1065	1 crop data for the purpose of formulating animal diets and
1066	1066	2 agricultural chemicals. This item (7) is exempt from the
1067	1067	3 provisions of Section 3-75.
1068	1068	4 (8) Until June 30, 2013, fuel and petroleum products sold
1069	1069	5 to or used by an air common carrier, certified by the carrier
1070	1070	6 to be used for consumption, shipment, or storage in the
1071	1071	7 conduct of its business as an air common carrier, for a flight
1072	1072	8 destined for or returning from a location or locations outside
1073	1073	9 the United States without regard to previous or subsequent
1074	1074	10 domestic stopovers.
1075	1075	11 Beginning July 1, 2013, fuel and petroleum products sold
1076	1076	12 to or used by an air carrier, certified by the carrier to be
1077	1077	13 used for consumption, shipment, or storage in the conduct of
1078	1078	14 its business as an air common carrier, for a flight that (i) is
1079	1079	15 engaged in foreign trade or is engaged in trade between the
1080	1080	16 United States and any of its possessions and (ii) transports
1081	1081	17 at least one individual or package for hire from the city of
1082	1082	18 origination to the city of final destination on the same
1083	1083	19 aircraft, without regard to a change in the flight number of
1084	1084	20 that aircraft.
1085	1085	21 (9) Proceeds of mandatory service charges separately
1086	1086	22 stated on customers' bills for the purchase and consumption of
1087	1087	23 food and beverages acquired as an incident to the purchase of a
1088	1088	24 service from a serviceman, to the extent that the proceeds of
1089	1089	25 the service charge are in fact turned over as tips or as a
1090	1090	26 substitute for tips to the employees who participate directly
1091	1091
1092	1092
1093	1093
1094	1094
1095	1095
1096	1096	SB1350 - 28 - LRB103 27798 HLH 54176 b
1097	1097
1098	1098
1099	1099	SB1350- 29 -LRB103 27798 HLH 54176 b SB1350 - 29 - LRB103 27798 HLH 54176 b
1100	1100	SB1350 - 29 - LRB103 27798 HLH 54176 b
1101	1101	1 in preparing, serving, hosting or cleaning up the food or
1102	1102	2 beverage function with respect to which the service charge is
1103	1103	3 imposed.
1104	1104	4 (10) Until July 1, 2003, oil field exploration, drilling,
1105	1105	5 and production equipment, including (i) rigs and parts of
1106	1106	6 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1107	1107	7 pipe and tubular goods, including casing and drill strings,
1108	1108	8 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1109	1109	9 lines, (v) any individual replacement part for oil field
1110	1110	10 exploration, drilling, and production equipment, and (vi)
1111	1111	11 machinery and equipment purchased for lease; but excluding
1112	1112	12 motor vehicles required to be registered under the Illinois
1113	1113	13 Vehicle Code.
1114	1114	14 (11) Proceeds from the sale of photoprocessing machinery
1115	1115	15 and equipment, including repair and replacement parts, both
1116	1116	16 new and used, including that manufactured on special order,
1117	1117	17 certified by the purchaser to be used primarily for
1118	1118	18 photoprocessing, and including photoprocessing machinery and
1119	1119	19 equipment purchased for lease.
1120	1120	20 (12) Until July 1, 2028, coal and aggregate exploration,
1121	1121	21 mining, off-highway hauling, processing, maintenance, and
1122	1122	22 reclamation equipment, including replacement parts and
1123	1123	23 equipment, and including equipment purchased for lease, but
1124	1124	24 excluding motor vehicles required to be registered under the
1125	1125	25 Illinois Vehicle Code. The changes made to this Section by
1126	1126	26 Public Act 97-767 apply on and after July 1, 2003, but no claim
1127	1127
1128	1128
1129	1129
1130	1130
1131	1131
1132	1132	SB1350 - 29 - LRB103 27798 HLH 54176 b
1133	1133
1134	1134
1135	1135	SB1350- 30 -LRB103 27798 HLH 54176 b SB1350 - 30 - LRB103 27798 HLH 54176 b
1136	1136	SB1350 - 30 - LRB103 27798 HLH 54176 b
1137	1137	1 for credit or refund is allowed on or after August 16, 2013
1138	1138	2 (the effective date of Public Act 98-456) for such taxes paid
1139	1139	3 during the period beginning July 1, 2003 and ending on August
1140	1140	4 16, 2013 (the effective date of Public Act 98-456).
1141	1141	5 (13) Semen used for artificial insemination of livestock
1142	1142	6 for direct agricultural production.
1143	1143	7 (14) Horses, or interests in horses, registered with and
1144	1144	8 meeting the requirements of any of the Arabian Horse Club
1145	1145	9 Registry of America, Appaloosa Horse Club, American Quarter
1146	1146	10 Horse Association, United States Trotting Association, or
1147	1147	11 Jockey Club, as appropriate, used for purposes of breeding or
1148	1148	12 racing for prizes. This item (14) is exempt from the
1149	1149	13 provisions of Section 3-75, and the exemption provided for
1150	1150	14 under this item (14) applies for all periods beginning May 30,
1151	1151	15 1995, but no claim for credit or refund is allowed on or after
1152	1152	16 January 1, 2008 (the effective date of Public Act 95-88) for
1153	1153	17 such taxes paid during the period beginning May 30, 2000 and
1154	1154	18 ending on January 1, 2008 (the effective date of Public Act
1155	1155	19 95-88).
1156	1156	20 (15) Computers and communications equipment utilized for
1157	1157	21 any hospital purpose and equipment used in the diagnosis,
1158	1158	22 analysis, or treatment of hospital patients purchased by a
1159	1159	23 lessor who leases the equipment, under a lease of one year or
1160	1160	24 longer executed or in effect at the time the lessor would
1161	1161	25 otherwise be subject to the tax imposed by this Act, to a
1162	1162	26 hospital that has been issued an active tax exemption
1163	1163
1164	1164
1165	1165
1166	1166
1167	1167
1168	1168	SB1350 - 30 - LRB103 27798 HLH 54176 b
1169	1169
1170	1170
1171	1171	SB1350- 31 -LRB103 27798 HLH 54176 b SB1350 - 31 - LRB103 27798 HLH 54176 b
1172	1172	SB1350 - 31 - LRB103 27798 HLH 54176 b
1173	1173	1 identification number by the Department under Section 1g of
1174	1174	2 the Retailers' Occupation Tax Act. If the equipment is leased
1175	1175	3 in a manner that does not qualify for this exemption or is used
1176	1176	4 in any other non-exempt manner, the lessor shall be liable for
1177	1177	5 the tax imposed under this Act or the Use Tax Act, as the case
1178	1178	6 may be, based on the fair market value of the property at the
1179	1179	7 time the non-qualifying use occurs. No lessor shall collect or
1180	1180	8 attempt to collect an amount (however designated) that
1181	1181	9 purports to reimburse that lessor for the tax imposed by this
1182	1182	10 Act or the Use Tax Act, as the case may be, if the tax has not
1183	1183	11 been paid by the lessor. If a lessor improperly collects any
1184	1184	12 such amount from the lessee, the lessee shall have a legal
1185	1185	13 right to claim a refund of that amount from the lessor. If,
1186	1186	14 however, that amount is not refunded to the lessee for any
1187	1187	15 reason, the lessor is liable to pay that amount to the
1188	1188	16 Department.
1189	1189	17 (16) Personal property purchased by a lessor who leases
1190	1190	18 the property, under a lease of one year or longer executed or
1191	1191	19 in effect at the time the lessor would otherwise be subject to
1192	1192	20 the tax imposed by this Act, to a governmental body that has
1193	1193	21 been issued an active tax exemption identification number by
1194	1194	22 the Department under Section 1g of the Retailers' Occupation
1195	1195	23 Tax Act. If the property is leased in a manner that does not
1196	1196	24 qualify for this exemption or is used in any other non-exempt
1197	1197	25 manner, the lessor shall be liable for the tax imposed under
1198	1198	26 this Act or the Use Tax Act, as the case may be, based on the
1199	1199
1200	1200
1201	1201
1202	1202
1203	1203
1204	1204	SB1350 - 31 - LRB103 27798 HLH 54176 b
1205	1205
1206	1206
1207	1207	SB1350- 32 -LRB103 27798 HLH 54176 b SB1350 - 32 - LRB103 27798 HLH 54176 b
1208	1208	SB1350 - 32 - LRB103 27798 HLH 54176 b
1209	1209	1 fair market value of the property at the time the
1210	1210	2 non-qualifying use occurs. No lessor shall collect or attempt
1211	1211	3 to collect an amount (however designated) that purports to
1212	1212	4 reimburse that lessor for the tax imposed by this Act or the
1213	1213	5 Use Tax Act, as the case may be, if the tax has not been paid
1214	1214	6 by the lessor. If a lessor improperly collects any such amount
1215	1215	7 from the lessee, the lessee shall have a legal right to claim a
1216	1216	8 refund of that amount from the lessor. If, however, that
1217	1217	9 amount is not refunded to the lessee for any reason, the lessor
1218	1218	10 is liable to pay that amount to the Department.
1219	1219	11 (17) Beginning with taxable years ending on or after
1220	1220	12 December 31, 1995 and ending with taxable years ending on or
1221	1221	13 before December 31, 2004, personal property that is donated
1222	1222	14 for disaster relief to be used in a State or federally declared
1223	1223	15 disaster area in Illinois or bordering Illinois by a
1224	1224	16 manufacturer or retailer that is registered in this State to a
1225	1225	17 corporation, society, association, foundation, or institution
1226	1226	18 that has been issued a sales tax exemption identification
1227	1227	19 number by the Department that assists victims of the disaster
1228	1228	20 who reside within the declared disaster area.
1229	1229	21 (18) Beginning with taxable years ending on or after
1230	1230	22 December 31, 1995 and ending with taxable years ending on or
1231	1231	23 before December 31, 2004, personal property that is used in
1232	1232	24 the performance of infrastructure repairs in this State,
1233	1233	25 including but not limited to municipal roads and streets,
1234	1234	26 access roads, bridges, sidewalks, waste disposal systems,
1235	1235
1236	1236
1237	1237
1238	1238
1239	1239
1240	1240	SB1350 - 32 - LRB103 27798 HLH 54176 b
1241	1241
1242	1242
1243	1243	SB1350- 33 -LRB103 27798 HLH 54176 b SB1350 - 33 - LRB103 27798 HLH 54176 b
1244	1244	SB1350 - 33 - LRB103 27798 HLH 54176 b
1245	1245	1 water and sewer line extensions, water distribution and
1246	1246	2 purification facilities, storm water drainage and retention
1247	1247	3 facilities, and sewage treatment facilities, resulting from a
1248	1248	4 State or federally declared disaster in Illinois or bordering
1249	1249	5 Illinois when such repairs are initiated on facilities located
1250	1250	6 in the declared disaster area within 6 months after the
1251	1251	7 disaster.
1252	1252	8 (19) Beginning July 1, 1999, game or game birds purchased
1253	1253	9 at a "game breeding and hunting preserve area" as that term is
1254	1254	10 used in the Wildlife Code. This paragraph is exempt from the
1255	1255	11 provisions of Section 3-75.
1256	1256	12 (20) A motor vehicle, as that term is defined in Section
1257	1257	13 1-146 of the Illinois Vehicle Code, that is donated to a
1258	1258	14 corporation, limited liability company, society, association,
1259	1259	15 foundation, or institution that is determined by the
1260	1260	16 Department to be organized and operated exclusively for
1261	1261	17 educational purposes. For purposes of this exemption, "a
1262	1262	18 corporation, limited liability company, society, association,
1263	1263	19 foundation, or institution organized and operated exclusively
1264	1264	20 for educational purposes" means all tax-supported public
1265	1265	21 schools, private schools that offer systematic instruction in
1266	1266	22 useful branches of learning by methods common to public
1267	1267	23 schools and that compare favorably in their scope and
1268	1268	24 intensity with the course of study presented in tax-supported
1269	1269	25 schools, and vocational or technical schools or institutes
1270	1270	26 organized and operated exclusively to provide a course of
1271	1271
1272	1272
1273	1273
1274	1274
1275	1275
1276	1276	SB1350 - 33 - LRB103 27798 HLH 54176 b
1277	1277
1278	1278
1279	1279	SB1350- 34 -LRB103 27798 HLH 54176 b SB1350 - 34 - LRB103 27798 HLH 54176 b
1280	1280	SB1350 - 34 - LRB103 27798 HLH 54176 b
1281	1281	1 study of not less than 6 weeks duration and designed to prepare
1282	1282	2 individuals to follow a trade or to pursue a manual,
1283	1283	3 technical, mechanical, industrial, business, or commercial
1284	1284	4 occupation.
1285	1285	5 (21) Beginning January 1, 2000, personal property,
1286	1286	6 including food, purchased through fundraising events for the
1287	1287	7 benefit of a public or private elementary or secondary school,
1288	1288	8 a group of those schools, or one or more school districts if
1289	1289	9 the events are sponsored by an entity recognized by the school
1290	1290	10 district that consists primarily of volunteers and includes
1291	1291	11 parents and teachers of the school children. This paragraph
1292	1292	12 does not apply to fundraising events (i) for the benefit of
1293	1293	13 private home instruction or (ii) for which the fundraising
1294	1294	14 entity purchases the personal property sold at the events from
1295	1295	15 another individual or entity that sold the property for the
1296	1296	16 purpose of resale by the fundraising entity and that profits
1297	1297	17 from the sale to the fundraising entity. This paragraph is
1298	1298	18 exempt from the provisions of Section 3-75.
1299	1299	19 (22) Beginning January 1, 2000 and through December 31,
1300	1300	20 2001, new or used automatic vending machines that prepare and
1301	1301	21 serve hot food and beverages, including coffee, soup, and
1302	1302	22 other items, and replacement parts for these machines.
1303	1303	23 Beginning January 1, 2002 and through June 30, 2003, machines
1304	1304	24 and parts for machines used in commercial, coin-operated
1305	1305	25 amusement and vending business if a use or occupation tax is
1306	1306	26 paid on the gross receipts derived from the use of the
1307	1307
1308	1308
1309	1309
1310	1310
1311	1311
1312	1312	SB1350 - 34 - LRB103 27798 HLH 54176 b
1313	1313
1314	1314
1315	1315	SB1350- 35 -LRB103 27798 HLH 54176 b SB1350 - 35 - LRB103 27798 HLH 54176 b
1316	1316	SB1350 - 35 - LRB103 27798 HLH 54176 b
1317	1317	1 commercial, coin-operated amusement and vending machines. This
1318	1318	2 paragraph is exempt from the provisions of Section 3-75.
1319	1319	3 (23) Beginning August 23, 2001 and through June 30, 2016,
1320	1320	4 food for human consumption that is to be consumed off the
1321	1321	5 premises where it is sold (other than alcoholic beverages,
1322	1322	6 soft drinks, and food that has been prepared for immediate
1323	1323	7 consumption) and prescription and nonprescription medicines,
1324	1324	8 drugs, medical appliances, and insulin, urine testing
1325	1325	9 materials, syringes, and needles used by diabetics, for human
1326	1326	10 use, when purchased for use by a person receiving medical
1327	1327	11 assistance under Article V of the Illinois Public Aid Code who
1328	1328	12 resides in a licensed long-term care facility, as defined in
1329	1329	13 the Nursing Home Care Act, or in a licensed facility as defined
1330	1330	14 in the ID/DD Community Care Act, the MC/DD Act, or the
1331	1331	15 Specialized Mental Health Rehabilitation Act of 2013.
1332	1332	16 (24) Beginning on August 2, 2001 (the effective date of
1333	1333	17 Public Act 92-227), computers and communications equipment
1334	1334	18 utilized for any hospital purpose and equipment used in the
1335	1335	19 diagnosis, analysis, or treatment of hospital patients
1336	1336	20 purchased by a lessor who leases the equipment, under a lease
1337	1337	21 of one year or longer executed or in effect at the time the
1338	1338	22 lessor would otherwise be subject to the tax imposed by this
1339	1339	23 Act, to a hospital that has been issued an active tax exemption
1340	1340	24 identification number by the Department under Section 1g of
1341	1341	25 the Retailers' Occupation Tax Act. If the equipment is leased
1342	1342	26 in a manner that does not qualify for this exemption or is used
1343	1343
1344	1344
1345	1345
1346	1346
1347	1347
1348	1348	SB1350 - 35 - LRB103 27798 HLH 54176 b
1349	1349
1350	1350
1351	1351	SB1350- 36 -LRB103 27798 HLH 54176 b SB1350 - 36 - LRB103 27798 HLH 54176 b
1352	1352	SB1350 - 36 - LRB103 27798 HLH 54176 b
1353	1353	1 in any other nonexempt manner, the lessor shall be liable for
1354	1354	2 the tax imposed under this Act or the Use Tax Act, as the case
1355	1355	3 may be, based on the fair market value of the property at the
1356	1356	4 time the nonqualifying use occurs. No lessor shall collect or
1357	1357	5 attempt to collect an amount (however designated) that
1358	1358	6 purports to reimburse that lessor for the tax imposed by this
1359	1359	7 Act or the Use Tax Act, as the case may be, if the tax has not
1360	1360	8 been paid by the lessor. If a lessor improperly collects any
1361	1361	9 such amount from the lessee, the lessee shall have a legal
1362	1362	10 right to claim a refund of that amount from the lessor. If,
1363	1363	11 however, that amount is not refunded to the lessee for any
1364	1364	12 reason, the lessor is liable to pay that amount to the
1365	1365	13 Department. This paragraph is exempt from the provisions of
1366	1366	14 Section 3-75.
1367	1367	15 (25) Beginning on August 2, 2001 (the effective date of
1368	1368	16 Public Act 92-227), personal property purchased by a lessor
1369	1369	17 who leases the property, under a lease of one year or longer
1370	1370	18 executed or in effect at the time the lessor would otherwise be
1371	1371	19 subject to the tax imposed by this Act, to a governmental body
1372	1372	20 that has been issued an active tax exemption identification
1373	1373	21 number by the Department under Section 1g of the Retailers'
1374	1374	22 Occupation Tax Act. If the property is leased in a manner that
1375	1375	23 does not qualify for this exemption or is used in any other
1376	1376	24 nonexempt manner, the lessor shall be liable for the tax
1377	1377	25 imposed under this Act or the Use Tax Act, as the case may be,
1378	1378	26 based on the fair market value of the property at the time the
1379	1379
1380	1380
1381	1381
1382	1382
1383	1383
1384	1384	SB1350 - 36 - LRB103 27798 HLH 54176 b
1385	1385
1386	1386
1387	1387	SB1350- 37 -LRB103 27798 HLH 54176 b SB1350 - 37 - LRB103 27798 HLH 54176 b
1388	1388	SB1350 - 37 - LRB103 27798 HLH 54176 b
1389	1389	1 nonqualifying use occurs. No lessor shall collect or attempt
1390	1390	2 to collect an amount (however designated) that purports to
1391	1391	3 reimburse that lessor for the tax imposed by this Act or the
1392	1392	4 Use Tax Act, as the case may be, if the tax has not been paid
1393	1393	5 by the lessor. If a lessor improperly collects any such amount
1394	1394	6 from the lessee, the lessee shall have a legal right to claim a
1395	1395	7 refund of that amount from the lessor. If, however, that
1396	1396	8 amount is not refunded to the lessee for any reason, the lessor
1397	1397	9 is liable to pay that amount to the Department. This paragraph
1398	1398	10 is exempt from the provisions of Section 3-75.
1399	1399	11 (26) Beginning January 1, 2008, tangible personal property
1400	1400	12 used in the construction or maintenance of a community water
1401	1401	13 supply, as defined under Section 3.145 of the Environmental
1402	1402	14 Protection Act, that is operated by a not-for-profit
1403	1403	15 corporation that holds a valid water supply permit issued
1404	1404	16 under Title IV of the Environmental Protection Act. This
1405	1405	17 paragraph is exempt from the provisions of Section 3-75.
1406	1406	18 (27) Beginning January 1, 2010 and continuing through
1407	1407	19 December 31, 2024, materials, parts, equipment, components,
1408	1408	20 and furnishings incorporated into or upon an aircraft as part
1409	1409	21 of the modification, refurbishment, completion, replacement,
1410	1410	22 repair, or maintenance of the aircraft. This exemption
1411	1411	23 includes consumable supplies used in the modification,
1412	1412	24 refurbishment, completion, replacement, repair, and
1413	1413	25 maintenance of aircraft, but excludes any materials, parts,
1414	1414	26 equipment, components, and consumable supplies used in the
1415	1415
1416	1416
1417	1417
1418	1418
1419	1419
1420	1420	SB1350 - 37 - LRB103 27798 HLH 54176 b
1421	1421
1422	1422
1423	1423	SB1350- 38 -LRB103 27798 HLH 54176 b SB1350 - 38 - LRB103 27798 HLH 54176 b
1424	1424	SB1350 - 38 - LRB103 27798 HLH 54176 b
1425	1425	1 modification, replacement, repair, and maintenance of aircraft
1426	1426	2 engines or power plants, whether such engines or power plants
1427	1427	3 are installed or uninstalled upon any such aircraft.
1428	1428	4 "Consumable supplies" include, but are not limited to,
1429	1429	5 adhesive, tape, sandpaper, general purpose lubricants,
1430	1430	6 cleaning solution, latex gloves, and protective films. This
1431	1431	7 exemption applies only to the use of qualifying tangible
1432	1432	8 personal property transferred incident to the modification,
1433	1433	9 refurbishment, completion, replacement, repair, or maintenance
1434	1434	10 of aircraft by persons who (i) hold an Air Agency Certificate
1435	1435	11 and are empowered to operate an approved repair station by the
1436	1436	12 Federal Aviation Administration, (ii) have a Class IV Rating,
1437	1437	13 and (iii) conduct operations in accordance with Part 145 of
1438	1438	14 the Federal Aviation Regulations. The exemption does not
1439	1439	15 include aircraft operated by a commercial air carrier
1440	1440	16 providing scheduled passenger air service pursuant to
1441	1441	17 authority issued under Part 121 or Part 129 of the Federal
1442	1442	18 Aviation Regulations. The changes made to this paragraph (27)
1443	1443	19 by Public Act 98-534 are declarative of existing law. It is the
1444	1444	20 intent of the General Assembly that the exemption under this
1445	1445	21 paragraph (27) applies continuously from January 1, 2010
1446	1446	22 through December 31, 2024; however, no claim for credit or
1447	1447	23 refund is allowed for taxes paid as a result of the
1448	1448	24 disallowance of this exemption on or after January 1, 2015 and
1449	1449	25 prior to February 5, 2020 (the effective date of Public Act
1450	1450	26 101-629) this amendatory Act of the 101st General Assembly.
1451	1451
1452	1452
1453	1453
1454	1454
1455	1455
1456	1456	SB1350 - 38 - LRB103 27798 HLH 54176 b
1457	1457
1458	1458
1459	1459	SB1350- 39 -LRB103 27798 HLH 54176 b SB1350 - 39 - LRB103 27798 HLH 54176 b
1460	1460	SB1350 - 39 - LRB103 27798 HLH 54176 b
1461	1461	1 (28) Tangible personal property purchased by a
1462	1462	2 public-facilities corporation, as described in Section
1463	1463	3 11-65-10 of the Illinois Municipal Code, for purposes of
1464	1464	4 constructing or furnishing a municipal convention hall, but
1465	1465	5 only if the legal title to the municipal convention hall is
1466	1466	6 transferred to the municipality without any further
1467	1467	7 consideration by or on behalf of the municipality at the time
1468	1468	8 of the completion of the municipal convention hall or upon the
1469	1469	9 retirement or redemption of any bonds or other debt
1470	1470	10 instruments issued by the public-facilities corporation in
1471	1471	11 connection with the development of the municipal convention
1472	1472	12 hall. This exemption includes existing public-facilities
1473	1473	13 corporations as provided in Section 11-65-25 of the Illinois
1474	1474	14 Municipal Code. This paragraph is exempt from the provisions
1475	1475	15 of Section 3-75.
1476	1476	16 (29) Beginning January 1, 2017 and through December 31,
1477	1477	17 2026, menstrual pads, tampons, and menstrual cups.
1478	1478	18 (30) Tangible personal property transferred to a purchaser
1479	1479	19 who is exempt from the tax imposed by this Act by operation of
1480	1480	20 federal law. This paragraph is exempt from the provisions of
1481	1481	21 Section 3-75.
1482	1482	22 (31) Qualified tangible personal property used in the
1483	1483	23 construction or operation of a data center that has been
1484	1484	24 granted a certificate of exemption by the Department of
1485	1485	25 Commerce and Economic Opportunity, whether that tangible
1486	1486	26 personal property is purchased by the owner, operator, or
1487	1487
1488	1488
1489	1489
1490	1490
1491	1491
1492	1492	SB1350 - 39 - LRB103 27798 HLH 54176 b
1493	1493
1494	1494
1495	1495	SB1350- 40 -LRB103 27798 HLH 54176 b SB1350 - 40 - LRB103 27798 HLH 54176 b
1496	1496	SB1350 - 40 - LRB103 27798 HLH 54176 b
1497	1497	1 tenant of the data center or by a contractor or subcontractor
1498	1498	2 of the owner, operator, or tenant. Data centers that would
1499	1499	3 have qualified for a certificate of exemption prior to January
1500	1500	4 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
1501	1501	5 General Assembly been in effect, may apply for and obtain an
1502	1502	6 exemption for subsequent purchases of computer equipment or
1503	1503	7 enabling software purchased or leased to upgrade, supplement,
1504	1504	8 or replace computer equipment or enabling software purchased
1505	1505	9 or leased in the original investment that would have
1506	1506	10 qualified.
1507	1507	11 The Department of Commerce and Economic Opportunity shall
1508	1508	12 grant a certificate of exemption under this item (31) to
1509	1509	13 qualified data centers as defined by Section 605-1025 of the
1510	1510	14 Department of Commerce and Economic Opportunity Law of the
1511	1511	15 Civil Administrative Code of Illinois.
1512	1512	16 For the purposes of this item (31):
1513	1513	17 "Data center" means a building or a series of
1514	1514	18 buildings rehabilitated or constructed to house working
1515	1515	19 servers in one physical location or multiple sites within
1516	1516	20 the State of Illinois.
1517	1517	21 "Qualified tangible personal property" means:
1518	1518	22 electrical systems and equipment; climate control and
1519	1519	23 chilling equipment and systems; mechanical systems and
1520	1520	24 equipment; monitoring and secure systems; emergency
1521	1521	25 generators; hardware; computers; servers; data storage
1522	1522	26 devices; network connectivity equipment; racks; cabinets;
1523	1523
1524	1524
1525	1525
1526	1526
1527	1527
1528	1528	SB1350 - 40 - LRB103 27798 HLH 54176 b
1529	1529
1530	1530
1531	1531	SB1350- 41 -LRB103 27798 HLH 54176 b SB1350 - 41 - LRB103 27798 HLH 54176 b
1532	1532	SB1350 - 41 - LRB103 27798 HLH 54176 b
1533	1533	1 telecommunications cabling infrastructure; raised floor
1534	1534	2 systems; peripheral components or systems; software;
1535	1535	3 mechanical, electrical, or plumbing systems; battery
1536	1536	4 systems; cooling systems and towers; temperature control
1537	1537	5 systems; other cabling; and other data center
1538	1538	6 infrastructure equipment and systems necessary to operate
1539	1539	7 qualified tangible personal property, including fixtures;
1540	1540	8 and component parts of any of the foregoing, including
1541	1541	9 installation, maintenance, repair, refurbishment, and
1542	1542	10 replacement of qualified tangible personal property to
1543	1543	11 generate, transform, transmit, distribute, or manage
1544	1544	12 electricity necessary to operate qualified tangible
1545	1545	13 personal property; and all other tangible personal
1546	1546	14 property that is essential to the operations of a computer
1547	1547	15 data center. The term "qualified tangible personal
1548	1548	16 property" also includes building materials physically
1549	1549	17 incorporated in to the qualifying data center. To document
1550	1550	18 the exemption allowed under this Section, the retailer
1551	1551	19 must obtain from the purchaser a copy of the certificate
1552	1552	20 of eligibility issued by the Department of Commerce and
1553	1553	21 Economic Opportunity.
1554	1554	22 This item (31) is exempt from the provisions of Section
1555	1555	23 3-75.
1556	1556	24 (32) Beginning July 1, 2022, breast pumps, breast pump
1557	1557	25 collection and storage supplies, and breast pump kits. This
1558	1558	26 item (32) is exempt from the provisions of Section 3-75. As
1559	1559
1560	1560
1561	1561
1562	1562
1563	1563
1564	1564	SB1350 - 41 - LRB103 27798 HLH 54176 b
1565	1565
1566	1566
1567	1567	SB1350- 42 -LRB103 27798 HLH 54176 b SB1350 - 42 - LRB103 27798 HLH 54176 b
1568	1568	SB1350 - 42 - LRB103 27798 HLH 54176 b
1569	1569	1 used in this item (32):
1570	1570	2 "Breast pump" means an electrically controlled or
1571	1571	3 manually controlled pump device designed or marketed to be
1572	1572	4 used to express milk from a human breast during lactation,
1573	1573	5 including the pump device and any battery, AC adapter, or
1574	1574	6 other power supply unit that is used to power the pump
1575	1575	7 device and is packaged and sold with the pump device at the
1576	1576	8 time of sale.
1577	1577	9 "Breast pump collection and storage supplies" means
1578	1578	10 items of tangible personal property designed or marketed
1579	1579	11 to be used in conjunction with a breast pump to collect
1580	1580	12 milk expressed from a human breast and to store collected
1581	1581	13 milk until it is ready for consumption.
1582	1582	14 "Breast pump collection and storage supplies"
1583	1583	15 includes, but is not limited to: breast shields and breast
1584	1584	16 shield connectors; breast pump tubes and tubing adapters;
1585	1585	17 breast pump valves and membranes; backflow protectors and
1586	1586	18 backflow protector adaptors; bottles and bottle caps
1587	1587	19 specific to the operation of the breast pump; and breast
1588	1588	20 milk storage bags.
1589	1589	21 "Breast pump collection and storage supplies" does not
1590	1590	22 include: (1) bottles and bottle caps not specific to the
1591	1591	23 operation of the breast pump; (2) breast pump travel bags
1592	1592	24 and other similar carrying accessories, including ice
1593	1593	25 packs, labels, and other similar products; (3) breast pump
1594	1594	26 cleaning supplies; (4) nursing bras, bra pads, breast
1595	1595
1596	1596
1597	1597
1598	1598
1599	1599
1600	1600	SB1350 - 42 - LRB103 27798 HLH 54176 b
1601	1601
1602	1602
1603	1603	SB1350- 43 -LRB103 27798 HLH 54176 b SB1350 - 43 - LRB103 27798 HLH 54176 b
1604	1604	SB1350 - 43 - LRB103 27798 HLH 54176 b
1605	1605	1 shells, and other similar products; and (5) creams,
1606	1606	2 ointments, and other similar products that relieve
1607	1607	3 breastfeeding-related symptoms or conditions of the
1608	1608	4 breasts or nipples, unless sold as part of a breast pump
1609	1609	5 kit that is pre-packaged by the breast pump manufacturer
1610	1610	6 or distributor.
1611	1611	7 "Breast pump kit" means a kit that: (1) contains no
1612	1612	8 more than a breast pump, breast pump collection and
1613	1613	9 storage supplies, a rechargeable battery for operating the
1614	1614	10 breast pump, a breastmilk cooler, bottle stands, ice
1615	1615	11 packs, and a breast pump carrying case; and (2) is
1616	1616	12 pre-packaged as a breast pump kit by the breast pump
1617	1617	13 manufacturer or distributor.
1618	1618	14 (33) (32) Tangible personal property sold by or on behalf
1619	1619	15 of the State Treasurer pursuant to the Revised Uniform
1620	1620	16 Unclaimed Property Act. This item (33) (32) is exempt from the
1621	1621	17 provisions of Section 3-75.
1622	1622	18 (34) Qualified tangible personal property used in the
1623	1623	19 construction or operation of a mega project for which a
1624	1624	20 certificate has been issued by the Department of Revenue as
1625	1625	21 described and defined in Division 22 of Article 10 of the
1626	1626	22 Property Tax Code, whether that tangible personal property is
1627	1627	23 purchased by the owner, operator, or tenant of the mega
1628	1628	24 project or by a contractor or subcontractor of the owner,
1629	1629	25 operator, or tenant.
1630	1630	26 For the purposes of this item (34):
1631	1631
1632	1632
1633	1633
1634	1634
1635	1635
1636	1636	SB1350 - 43 - LRB103 27798 HLH 54176 b
1637	1637
1638	1638
1639	1639	SB1350- 44 -LRB103 27798 HLH 54176 b SB1350 - 44 - LRB103 27798 HLH 54176 b
1640	1640	SB1350 - 44 - LRB103 27798 HLH 54176 b
1641	1641	1 "Facility" means a building or series of buildings.
1642	1642	2 "Mega project" means a facility that is rehabilitated or
1643	1643	3 constructed as described in Division 22 of Article 10 of the
1644	1644	4 Property Tax Code.
1645	1645	5 "Qualified tangible personal property" means: electrical
1646	1646	6 systems and equipment; climate control and chilling equipment
1647	1647	7 and systems; mechanical systems and equipment; monitoring and
1648	1648	8 secure systems; emergency generators; hardware; computers;
1649	1649	9 servers; data storage devices; network connectivity equipment;
1650	1650	10 racks; cabinets; telecommunications cabling infrastructure;
1651	1651	11 raised floor systems; peripheral components or systems;
1652	1652	12 software; mechanical, electrical, or plumbing systems; battery
1653	1653	13 systems; cooling systems and towers; temperature control
1654	1654	14 systems; other cabling; and other data center infrastructure
1655	1655	15 equipment and systems necessary to operate qualified tangible
1656	1656	16 personal property, including fixtures; and component parts of
1657	1657	17 any of the foregoing, including installation, maintenance,
1658	1658	18 repair, refurbishment, and replacement of qualified tangible
1659	1659	19 personal property to generate, transform, transmit,
1660	1660	20 distribute, or manage electricity necessary to operate
1661	1661	21 qualified tangible personal property; and all other tangible
1662	1662	22 personal property that is essential to the operations of a
1663	1663	23 mega project. The term "qualified tangible personal property"
1664	1664	24 also includes building materials to be incorporated into the
1665	1665	25 mega project. To document the exemption allowed under this
1666	1666	26 Section, the retailer, contractor or subcontractor or supplier
1667	1667
1668	1668
1669	1669
1670	1670
1671	1671
1672	1672	SB1350 - 44 - LRB103 27798 HLH 54176 b
1673	1673
1674	1674
1675	1675	SB1350- 45 -LRB103 27798 HLH 54176 b SB1350 - 45 - LRB103 27798 HLH 54176 b
1676	1676	SB1350 - 45 - LRB103 27798 HLH 54176 b
1677	1677	1 must obtain from the purchaser a copy of the certificate
1678	1678	2 issued by the Department of Revenue for the mega project as
1679	1679	3 described and defined in Division 22 of Article 10 of the
1680	1680	4 Property Tax Code.
1681	1681	5 This item (34) is exempt from the provisions of Section
1682	1682	6 3-75.
1683	1683	7 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
1684	1684	8 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1685	1685	9 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1686	1686	10 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
1687	1687	11 Section 15. The Service Occupation Tax Act is amended by
1688	1688	12 changing Section 3-5 as follows:
1689	1689	13 (35 ILCS 115/3-5)
1690	1690	14 Sec. 3-5. Exemptions. The following tangible personal
1691	1691	15 property is exempt from the tax imposed by this Act:
1692	1692	16 (1) Personal property sold by a corporation, society,
1693	1693	17 association, foundation, institution, or organization, other
1694	1694	18 than a limited liability company, that is organized and
1695	1695	19 operated as a not-for-profit service enterprise for the
1696	1696	20 benefit of persons 65 years of age or older if the personal
1697	1697	21 property was not purchased by the enterprise for the purpose
1698	1698	22 of resale by the enterprise.
1699	1699	23 (2) Personal property purchased by a not-for-profit
1700	1700	24 Illinois county fair association for use in conducting,
1701	1701
1702	1702
1703	1703
1704	1704
1705	1705
1706	1706	SB1350 - 45 - LRB103 27798 HLH 54176 b
1707	1707
1708	1708
1709	1709	SB1350- 46 -LRB103 27798 HLH 54176 b SB1350 - 46 - LRB103 27798 HLH 54176 b
1710	1710	SB1350 - 46 - LRB103 27798 HLH 54176 b
1711	1711	1 operating, or promoting the county fair.
1712	1712	2 (3) Personal property purchased by any not-for-profit arts
1713	1713	3 or cultural organization that establishes, by proof required
1714	1714	4 by the Department by rule, that it has received an exemption
1715	1715	5 under Section 501(c)(3) of the Internal Revenue Code and that
1716	1716	6 is organized and operated primarily for the presentation or
1717	1717	7 support of arts or cultural programming, activities, or
1718	1718	8 services. These organizations include, but are not limited to,
1719	1719	9 music and dramatic arts organizations such as symphony
1720	1720	10 orchestras and theatrical groups, arts and cultural service
1721	1721	11 organizations, local arts councils, visual arts organizations,
1722	1722	12 and media arts organizations. On and after July 1, 2001 (the
1723	1723	13 effective date of Public Act 92-35), however, an entity
1724	1724	14 otherwise eligible for this exemption shall not make tax-free
1725	1725	15 purchases unless it has an active identification number issued
1726	1726	16 by the Department.
1727	1727	17 (4) Legal tender, currency, medallions, or gold or silver
1728	1728	18 coinage issued by the State of Illinois, the government of the
1729	1729	19 United States of America, or the government of any foreign
1730	1730	20 country, and bullion.
1731	1731	21 (5) Until July 1, 2003 and beginning again on September 1,
1732	1732	22 2004 through August 30, 2014, graphic arts machinery and
1733	1733	23 equipment, including repair and replacement parts, both new
1734	1734	24 and used, and including that manufactured on special order or
1735	1735	25 purchased for lease, certified by the purchaser to be used
1736	1736	26 primarily for graphic arts production. Equipment includes
1737	1737
1738	1738
1739	1739
1740	1740
1741	1741
1742	1742	SB1350 - 46 - LRB103 27798 HLH 54176 b
1743	1743
1744	1744
1745	1745	SB1350- 47 -LRB103 27798 HLH 54176 b SB1350 - 47 - LRB103 27798 HLH 54176 b
1746	1746	SB1350 - 47 - LRB103 27798 HLH 54176 b
1747	1747	1 chemicals or chemicals acting as catalysts but only if the
1748	1748	2 chemicals or chemicals acting as catalysts effect a direct and
1749	1749	3 immediate change upon a graphic arts product. Beginning on
1750	1750	4 July 1, 2017, graphic arts machinery and equipment is included
1751	1751	5 in the manufacturing and assembling machinery and equipment
1752	1752	6 exemption under Section 2 of this Act.
1753	1753	7 (6) Personal property sold by a teacher-sponsored student
1754	1754	8 organization affiliated with an elementary or secondary school
1755	1755	9 located in Illinois.
1756	1756	10 (7) Farm machinery and equipment, both new and used,
1757	1757	11 including that manufactured on special order, certified by the
1758	1758	12 purchaser to be used primarily for production agriculture or
1759	1759	13 State or federal agricultural programs, including individual
1760	1760	14 replacement parts for the machinery and equipment, including
1761	1761	15 machinery and equipment purchased for lease, and including
1762	1762	16 implements of husbandry defined in Section 1-130 of the
1763	1763	17 Illinois Vehicle Code, farm machinery and agricultural
1764	1764	18 chemical and fertilizer spreaders, and nurse wagons required
1765	1765	19 to be registered under Section 3-809 of the Illinois Vehicle
1766	1766	20 Code, but excluding other motor vehicles required to be
1767	1767	21 registered under the Illinois Vehicle Code. Horticultural
1768	1768	22 polyhouses or hoop houses used for propagating, growing, or
1769	1769	23 overwintering plants shall be considered farm machinery and
1770	1770	24 equipment under this item (7). Agricultural chemical tender
1771	1771	25 tanks and dry boxes shall include units sold separately from a
1772	1772	26 motor vehicle required to be licensed and units sold mounted
1773	1773
1774	1774
1775	1775
1776	1776
1777	1777
1778	1778	SB1350 - 47 - LRB103 27798 HLH 54176 b
1779	1779
1780	1780
1781	1781	SB1350- 48 -LRB103 27798 HLH 54176 b SB1350 - 48 - LRB103 27798 HLH 54176 b
1782	1782	SB1350 - 48 - LRB103 27798 HLH 54176 b
1783	1783	1 on a motor vehicle required to be licensed if the selling price
1784	1784	2 of the tender is separately stated.
1785	1785	3 Farm machinery and equipment shall include precision
1786	1786	4 farming equipment that is installed or purchased to be
1787	1787	5 installed on farm machinery and equipment including, but not
1788	1788	6 limited to, tractors, harvesters, sprayers, planters, seeders,
1789	1789	7 or spreaders. Precision farming equipment includes, but is not
1790	1790	8 limited to, soil testing sensors, computers, monitors,
1791	1791	9 software, global positioning and mapping systems, and other
1792	1792	10 such equipment.
1793	1793	11 Farm machinery and equipment also includes computers,
1794	1794	12 sensors, software, and related equipment used primarily in the
1795	1795	13 computer-assisted operation of production agriculture
1796	1796	14 facilities, equipment, and activities such as, but not limited
1797	1797	15 to, the collection, monitoring, and correlation of animal and
1798	1798	16 crop data for the purpose of formulating animal diets and
1799	1799	17 agricultural chemicals. This item (7) is exempt from the
1800	1800	18 provisions of Section 3-55.
1801	1801	19 (8) Until June 30, 2013, fuel and petroleum products sold
1802	1802	20 to or used by an air common carrier, certified by the carrier
1803	1803	21 to be used for consumption, shipment, or storage in the
1804	1804	22 conduct of its business as an air common carrier, for a flight
1805	1805	23 destined for or returning from a location or locations outside
1806	1806	24 the United States without regard to previous or subsequent
1807	1807	25 domestic stopovers.
1808	1808	26 Beginning July 1, 2013, fuel and petroleum products sold
1809	1809
1810	1810
1811	1811
1812	1812
1813	1813
1814	1814	SB1350 - 48 - LRB103 27798 HLH 54176 b
1815	1815
1816	1816
1817	1817	SB1350- 49 -LRB103 27798 HLH 54176 b SB1350 - 49 - LRB103 27798 HLH 54176 b
1818	1818	SB1350 - 49 - LRB103 27798 HLH 54176 b
1819	1819	1 to or used by an air carrier, certified by the carrier to be
1820	1820	2 used for consumption, shipment, or storage in the conduct of
1821	1821	3 its business as an air common carrier, for a flight that (i) is
1822	1822	4 engaged in foreign trade or is engaged in trade between the
1823	1823	5 United States and any of its possessions and (ii) transports
1824	1824	6 at least one individual or package for hire from the city of
1825	1825	7 origination to the city of final destination on the same
1826	1826	8 aircraft, without regard to a change in the flight number of
1827	1827	9 that aircraft.
1828	1828	10 (9) Proceeds of mandatory service charges separately
1829	1829	11 stated on customers' bills for the purchase and consumption of
1830	1830	12 food and beverages, to the extent that the proceeds of the
1831	1831	13 service charge are in fact turned over as tips or as a
1832	1832	14 substitute for tips to the employees who participate directly
1833	1833	15 in preparing, serving, hosting or cleaning up the food or
1834	1834	16 beverage function with respect to which the service charge is
1835	1835	17 imposed.
1836	1836	18 (10) Until July 1, 2003, oil field exploration, drilling,
1837	1837	19 and production equipment, including (i) rigs and parts of
1838	1838	20 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1839	1839	21 pipe and tubular goods, including casing and drill strings,
1840	1840	22 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1841	1841	23 lines, (v) any individual replacement part for oil field
1842	1842	24 exploration, drilling, and production equipment, and (vi)
1843	1843	25 machinery and equipment purchased for lease; but excluding
1844	1844	26 motor vehicles required to be registered under the Illinois
1845	1845
1846	1846
1847	1847
1848	1848
1849	1849
1850	1850	SB1350 - 49 - LRB103 27798 HLH 54176 b
1851	1851
1852	1852
1853	1853	SB1350- 50 -LRB103 27798 HLH 54176 b SB1350 - 50 - LRB103 27798 HLH 54176 b
1854	1854	SB1350 - 50 - LRB103 27798 HLH 54176 b
1855	1855	1 Vehicle Code.
1856	1856	2 (11) Photoprocessing machinery and equipment, including
1857	1857	3 repair and replacement parts, both new and used, including
1858	1858	4 that manufactured on special order, certified by the purchaser
1859	1859	5 to be used primarily for photoprocessing, and including
1860	1860	6 photoprocessing machinery and equipment purchased for lease.
1861	1861	7 (12) Until July 1, 2028, coal and aggregate exploration,
1862	1862	8 mining, off-highway hauling, processing, maintenance, and
1863	1863	9 reclamation equipment, including replacement parts and
1864	1864	10 equipment, and including equipment purchased for lease, but
1865	1865	11 excluding motor vehicles required to be registered under the
1866	1866	12 Illinois Vehicle Code. The changes made to this Section by
1867	1867	13 Public Act 97-767 apply on and after July 1, 2003, but no claim
1868	1868	14 for credit or refund is allowed on or after August 16, 2013
1869	1869	15 (the effective date of Public Act 98-456) for such taxes paid
1870	1870	16 during the period beginning July 1, 2003 and ending on August
1871	1871	17 16, 2013 (the effective date of Public Act 98-456).
1872	1872	18 (13) Beginning January 1, 1992 and through June 30, 2016,
1873	1873	19 food for human consumption that is to be consumed off the
1874	1874	20 premises where it is sold (other than alcoholic beverages,
1875	1875	21 soft drinks and food that has been prepared for immediate
1876	1876	22 consumption) and prescription and non-prescription medicines,
1877	1877	23 drugs, medical appliances, and insulin, urine testing
1878	1878	24 materials, syringes, and needles used by diabetics, for human
1879	1879	25 use, when purchased for use by a person receiving medical
1880	1880	26 assistance under Article V of the Illinois Public Aid Code who
1881	1881
1882	1882
1883	1883
1884	1884
1885	1885
1886	1886	SB1350 - 50 - LRB103 27798 HLH 54176 b
1887	1887
1888	1888
1889	1889	SB1350- 51 -LRB103 27798 HLH 54176 b SB1350 - 51 - LRB103 27798 HLH 54176 b
1890	1890	SB1350 - 51 - LRB103 27798 HLH 54176 b
1891	1891	1 resides in a licensed long-term care facility, as defined in
1892	1892	2 the Nursing Home Care Act, or in a licensed facility as defined
1893	1893	3 in the ID/DD Community Care Act, the MC/DD Act, or the
1894	1894	4 Specialized Mental Health Rehabilitation Act of 2013.
1895	1895	5 (14) Semen used for artificial insemination of livestock
1896	1896	6 for direct agricultural production.
1897	1897	7 (15) Horses, or interests in horses, registered with and
1898	1898	8 meeting the requirements of any of the Arabian Horse Club
1899	1899	9 Registry of America, Appaloosa Horse Club, American Quarter
1900	1900	10 Horse Association, United States Trotting Association, or
1901	1901	11 Jockey Club, as appropriate, used for purposes of breeding or
1902	1902	12 racing for prizes. This item (15) is exempt from the
1903	1903	13 provisions of Section 3-55, and the exemption provided for
1904	1904	14 under this item (15) applies for all periods beginning May 30,
1905	1905	15 1995, but no claim for credit or refund is allowed on or after
1906	1906	16 January 1, 2008 (the effective date of Public Act 95-88) for
1907	1907	17 such taxes paid during the period beginning May 30, 2000 and
1908	1908	18 ending on January 1, 2008 (the effective date of Public Act
1909	1909	19 95-88).
1910	1910	20 (16) Computers and communications equipment utilized for
1911	1911	21 any hospital purpose and equipment used in the diagnosis,
1912	1912	22 analysis, or treatment of hospital patients sold to a lessor
1913	1913	23 who leases the equipment, under a lease of one year or longer
1914	1914	24 executed or in effect at the time of the purchase, to a
1915	1915	25 hospital that has been issued an active tax exemption
1916	1916	26 identification number by the Department under Section 1g of
1917	1917
1918	1918
1919	1919
1920	1920
1921	1921
1922	1922	SB1350 - 51 - LRB103 27798 HLH 54176 b
1923	1923
1924	1924
1925	1925	SB1350- 52 -LRB103 27798 HLH 54176 b SB1350 - 52 - LRB103 27798 HLH 54176 b
1926	1926	SB1350 - 52 - LRB103 27798 HLH 54176 b
1927	1927	1 the Retailers' Occupation Tax Act.
1928	1928	2 (17) Personal property sold to a lessor who leases the
1929	1929	3 property, under a lease of one year or longer executed or in
1930	1930	4 effect at the time of the purchase, to a governmental body that
1931	1931	5 has been issued an active tax exemption identification number
1932	1932	6 by the Department under Section 1g of the Retailers'
1933	1933	7 Occupation Tax Act.
1934	1934	8 (18) Beginning with taxable years ending on or after
1935	1935	9 December 31, 1995 and ending with taxable years ending on or
1936	1936	10 before December 31, 2004, personal property that is donated
1937	1937	11 for disaster relief to be used in a State or federally declared
1938	1938	12 disaster area in Illinois or bordering Illinois by a
1939	1939	13 manufacturer or retailer that is registered in this State to a
1940	1940	14 corporation, society, association, foundation, or institution
1941	1941	15 that has been issued a sales tax exemption identification
1942	1942	16 number by the Department that assists victims of the disaster
1943	1943	17 who reside within the declared disaster area.
1944	1944	18 (19) Beginning with taxable years ending on or after
1945	1945	19 December 31, 1995 and ending with taxable years ending on or
1946	1946	20 before December 31, 2004, personal property that is used in
1947	1947	21 the performance of infrastructure repairs in this State,
1948	1948	22 including but not limited to municipal roads and streets,
1949	1949	23 access roads, bridges, sidewalks, waste disposal systems,
1950	1950	24 water and sewer line extensions, water distribution and
1951	1951	25 purification facilities, storm water drainage and retention
1952	1952	26 facilities, and sewage treatment facilities, resulting from a
1953	1953
1954	1954
1955	1955
1956	1956
1957	1957
1958	1958	SB1350 - 52 - LRB103 27798 HLH 54176 b
1959	1959
1960	1960
1961	1961	SB1350- 53 -LRB103 27798 HLH 54176 b SB1350 - 53 - LRB103 27798 HLH 54176 b
1962	1962	SB1350 - 53 - LRB103 27798 HLH 54176 b
1963	1963	1 State or federally declared disaster in Illinois or bordering
1964	1964	2 Illinois when such repairs are initiated on facilities located
1965	1965	3 in the declared disaster area within 6 months after the
1966	1966	4 disaster.
1967	1967	5 (20) Beginning July 1, 1999, game or game birds sold at a
1968	1968	6 "game breeding and hunting preserve area" as that term is used
1969	1969	7 in the Wildlife Code. This paragraph is exempt from the
1970	1970	8 provisions of Section 3-55.
1971	1971	9 (21) A motor vehicle, as that term is defined in Section
1972	1972	10 1-146 of the Illinois Vehicle Code, that is donated to a
1973	1973	11 corporation, limited liability company, society, association,
1974	1974	12 foundation, or institution that is determined by the
1975	1975	13 Department to be organized and operated exclusively for
1976	1976	14 educational purposes. For purposes of this exemption, "a
1977	1977	15 corporation, limited liability company, society, association,
1978	1978	16 foundation, or institution organized and operated exclusively
1979	1979	17 for educational purposes" means all tax-supported public
1980	1980	18 schools, private schools that offer systematic instruction in
1981	1981	19 useful branches of learning by methods common to public
1982	1982	20 schools and that compare favorably in their scope and
1983	1983	21 intensity with the course of study presented in tax-supported
1984	1984	22 schools, and vocational or technical schools or institutes
1985	1985	23 organized and operated exclusively to provide a course of
1986	1986	24 study of not less than 6 weeks duration and designed to prepare
1987	1987	25 individuals to follow a trade or to pursue a manual,
1988	1988	26 technical, mechanical, industrial, business, or commercial
1989	1989
1990	1990
1991	1991
1992	1992
1993	1993
1994	1994	SB1350 - 53 - LRB103 27798 HLH 54176 b
1995	1995
1996	1996
1997	1997	SB1350- 54 -LRB103 27798 HLH 54176 b SB1350 - 54 - LRB103 27798 HLH 54176 b
1998	1998	SB1350 - 54 - LRB103 27798 HLH 54176 b
1999	1999	1 occupation.
2000	2000	2 (22) Beginning January 1, 2000, personal property,
2001	2001	3 including food, purchased through fundraising events for the
2002	2002	4 benefit of a public or private elementary or secondary school,
2003	2003	5 a group of those schools, or one or more school districts if
2004	2004	6 the events are sponsored by an entity recognized by the school
2005	2005	7 district that consists primarily of volunteers and includes
2006	2006	8 parents and teachers of the school children. This paragraph
2007	2007	9 does not apply to fundraising events (i) for the benefit of
2008	2008	10 private home instruction or (ii) for which the fundraising
2009	2009	11 entity purchases the personal property sold at the events from
2010	2010	12 another individual or entity that sold the property for the
2011	2011	13 purpose of resale by the fundraising entity and that profits
2012	2012	14 from the sale to the fundraising entity. This paragraph is
2013	2013	15 exempt from the provisions of Section 3-55.
2014	2014	16 (23) Beginning January 1, 2000 and through December 31,
2015	2015	17 2001, new or used automatic vending machines that prepare and
2016	2016	18 serve hot food and beverages, including coffee, soup, and
2017	2017	19 other items, and replacement parts for these machines.
2018	2018	20 Beginning January 1, 2002 and through June 30, 2003, machines
2019	2019	21 and parts for machines used in commercial, coin-operated
2020	2020	22 amusement and vending business if a use or occupation tax is
2021	2021	23 paid on the gross receipts derived from the use of the
2022	2022	24 commercial, coin-operated amusement and vending machines. This
2023	2023	25 paragraph is exempt from the provisions of Section 3-55.
2024	2024	26 (24) Beginning on August 2, 2001 (the effective date of
2025	2025
2026	2026
2027	2027
2028	2028
2029	2029
2030	2030	SB1350 - 54 - LRB103 27798 HLH 54176 b
2031	2031
2032	2032
2033	2033	SB1350- 55 -LRB103 27798 HLH 54176 b SB1350 - 55 - LRB103 27798 HLH 54176 b
2034	2034	SB1350 - 55 - LRB103 27798 HLH 54176 b
2035	2035	1 Public Act 92-227), computers and communications equipment
2036	2036	2 utilized for any hospital purpose and equipment used in the
2037	2037	3 diagnosis, analysis, or treatment of hospital patients sold to
2038	2038	4 a lessor who leases the equipment, under a lease of one year or
2039	2039	5 longer executed or in effect at the time of the purchase, to a
2040	2040	6 hospital that has been issued an active tax exemption
2041	2041	7 identification number by the Department under Section 1g of
2042	2042	8 the Retailers' Occupation Tax Act. This paragraph is exempt
2043	2043	9 from the provisions of Section 3-55.
2044	2044	10 (25) Beginning on August 2, 2001 (the effective date of
2045	2045	11 Public Act 92-227), personal property sold to a lessor who
2046	2046	12 leases the property, under a lease of one year or longer
2047	2047	13 executed or in effect at the time of the purchase, to a
2048	2048	14 governmental body that has been issued an active tax exemption
2049	2049	15 identification number by the Department under Section 1g of
2050	2050	16 the Retailers' Occupation Tax Act. This paragraph is exempt
2051	2051	17 from the provisions of Section 3-55.
2052	2052	18 (26) Beginning on January 1, 2002 and through June 30,
2053	2053	19 2016, tangible personal property purchased from an Illinois
2054	2054	20 retailer by a taxpayer engaged in centralized purchasing
2055	2055	21 activities in Illinois who will, upon receipt of the property
2056	2056	22 in Illinois, temporarily store the property in Illinois (i)
2057	2057	23 for the purpose of subsequently transporting it outside this
2058	2058	24 State for use or consumption thereafter solely outside this
2059	2059	25 State or (ii) for the purpose of being processed, fabricated,
2060	2060	26 or manufactured into, attached to, or incorporated into other
2061	2061
2062	2062
2063	2063
2064	2064
2065	2065
2066	2066	SB1350 - 55 - LRB103 27798 HLH 54176 b
2067	2067
2068	2068
2069	2069	SB1350- 56 -LRB103 27798 HLH 54176 b SB1350 - 56 - LRB103 27798 HLH 54176 b
2070	2070	SB1350 - 56 - LRB103 27798 HLH 54176 b
2071	2071	1 tangible personal property to be transported outside this
2072	2072	2 State and thereafter used or consumed solely outside this
2073	2073	3 State. The Director of Revenue shall, pursuant to rules
2074	2074	4 adopted in accordance with the Illinois Administrative
2075	2075	5 Procedure Act, issue a permit to any taxpayer in good standing
2076	2076	6 with the Department who is eligible for the exemption under
2077	2077	7 this paragraph (26). The permit issued under this paragraph
2078	2078	8 (26) shall authorize the holder, to the extent and in the
2079	2079	9 manner specified in the rules adopted under this Act, to
2080	2080	10 purchase tangible personal property from a retailer exempt
2081	2081	11 from the taxes imposed by this Act. Taxpayers shall maintain
2082	2082	12 all necessary books and records to substantiate the use and
2083	2083	13 consumption of all such tangible personal property outside of
2084	2084	14 the State of Illinois.
2085	2085	15 (27) Beginning January 1, 2008, tangible personal property
2086	2086	16 used in the construction or maintenance of a community water
2087	2087	17 supply, as defined under Section 3.145 of the Environmental
2088	2088	18 Protection Act, that is operated by a not-for-profit
2089	2089	19 corporation that holds a valid water supply permit issued
2090	2090	20 under Title IV of the Environmental Protection Act. This
2091	2091	21 paragraph is exempt from the provisions of Section 3-55.
2092	2092	22 (28) Tangible personal property sold to a
2093	2093	23 public-facilities corporation, as described in Section
2094	2094	24 11-65-10 of the Illinois Municipal Code, for purposes of
2095	2095	25 constructing or furnishing a municipal convention hall, but
2096	2096	26 only if the legal title to the municipal convention hall is
2097	2097
2098	2098
2099	2099
2100	2100
2101	2101
2102	2102	SB1350 - 56 - LRB103 27798 HLH 54176 b
2103	2103
2104	2104
2105	2105	SB1350- 57 -LRB103 27798 HLH 54176 b SB1350 - 57 - LRB103 27798 HLH 54176 b
2106	2106	SB1350 - 57 - LRB103 27798 HLH 54176 b
2107	2107	1 transferred to the municipality without any further
2108	2108	2 consideration by or on behalf of the municipality at the time
2109	2109	3 of the completion of the municipal convention hall or upon the
2110	2110	4 retirement or redemption of any bonds or other debt
2111	2111	5 instruments issued by the public-facilities corporation in
2112	2112	6 connection with the development of the municipal convention
2113	2113	7 hall. This exemption includes existing public-facilities
2114	2114	8 corporations as provided in Section 11-65-25 of the Illinois
2115	2115	9 Municipal Code. This paragraph is exempt from the provisions
2116	2116	10 of Section 3-55.
2117	2117	11 (29) Beginning January 1, 2010 and continuing through
2118	2118	12 December 31, 2024, materials, parts, equipment, components,
2119	2119	13 and furnishings incorporated into or upon an aircraft as part
2120	2120	14 of the modification, refurbishment, completion, replacement,
2121	2121	15 repair, or maintenance of the aircraft. This exemption
2122	2122	16 includes consumable supplies used in the modification,
2123	2123	17 refurbishment, completion, replacement, repair, and
2124	2124	18 maintenance of aircraft, but excludes any materials, parts,
2125	2125	19 equipment, components, and consumable supplies used in the
2126	2126	20 modification, replacement, repair, and maintenance of aircraft
2127	2127	21 engines or power plants, whether such engines or power plants
2128	2128	22 are installed or uninstalled upon any such aircraft.
2129	2129	23 "Consumable supplies" include, but are not limited to,
2130	2130	24 adhesive, tape, sandpaper, general purpose lubricants,
2131	2131	25 cleaning solution, latex gloves, and protective films. This
2132	2132	26 exemption applies only to the transfer of qualifying tangible
2133	2133
2134	2134
2135	2135
2136	2136
2137	2137
2138	2138	SB1350 - 57 - LRB103 27798 HLH 54176 b
2139	2139
2140	2140
2141	2141	SB1350- 58 -LRB103 27798 HLH 54176 b SB1350 - 58 - LRB103 27798 HLH 54176 b
2142	2142	SB1350 - 58 - LRB103 27798 HLH 54176 b
2143	2143	1 personal property incident to the modification, refurbishment,
2144	2144	2 completion, replacement, repair, or maintenance of an aircraft
2145	2145	3 by persons who (i) hold an Air Agency Certificate and are
2146	2146	4 empowered to operate an approved repair station by the Federal
2147	2147	5 Aviation Administration, (ii) have a Class IV Rating, and
2148	2148	6 (iii) conduct operations in accordance with Part 145 of the
2149	2149	7 Federal Aviation Regulations. The exemption does not include
2150	2150	8 aircraft operated by a commercial air carrier providing
2151	2151	9 scheduled passenger air service pursuant to authority issued
2152	2152	10 under Part 121 or Part 129 of the Federal Aviation
2153	2153	11 Regulations. The changes made to this paragraph (29) by Public
2154	2154	12 Act 98-534 are declarative of existing law. It is the intent of
2155	2155	13 the General Assembly that the exemption under this paragraph
2156	2156	14 (29) applies continuously from January 1, 2010 through
2157	2157	15 December 31, 2024; however, no claim for credit or refund is
2158	2158	16 allowed for taxes paid as a result of the disallowance of this
2159	2159	17 exemption on or after January 1, 2015 and prior to February 5,
2160	2160	18 2020 (the effective date of Public Act 101-629) this
2161	2161	19 amendatory Act of the 101st General Assembly.
2162	2162	20 (30) Beginning January 1, 2017 and through December 31,
2163	2163	21 2026, menstrual pads, tampons, and menstrual cups.
2164	2164	22 (31) Tangible personal property transferred to a purchaser
2165	2165	23 who is exempt from tax by operation of federal law. This
2166	2166	24 paragraph is exempt from the provisions of Section 3-55.
2167	2167	25 (32) Qualified tangible personal property used in the
2168	2168	26 construction or operation of a data center that has been
2169	2169
2170	2170
2171	2171
2172	2172
2173	2173
2174	2174	SB1350 - 58 - LRB103 27798 HLH 54176 b
2175	2175
2176	2176
2177	2177	SB1350- 59 -LRB103 27798 HLH 54176 b SB1350 - 59 - LRB103 27798 HLH 54176 b
2178	2178	SB1350 - 59 - LRB103 27798 HLH 54176 b
2179	2179	1 granted a certificate of exemption by the Department of
2180	2180	2 Commerce and Economic Opportunity, whether that tangible
2181	2181	3 personal property is purchased by the owner, operator, or
2182	2182	4 tenant of the data center or by a contractor or subcontractor
2183	2183	5 of the owner, operator, or tenant. Data centers that would
2184	2184	6 have qualified for a certificate of exemption prior to January
2185	2185	7 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
2186	2186	8 General Assembly been in effect, may apply for and obtain an
2187	2187	9 exemption for subsequent purchases of computer equipment or
2188	2188	10 enabling software purchased or leased to upgrade, supplement,
2189	2189	11 or replace computer equipment or enabling software purchased
2190	2190	12 or leased in the original investment that would have
2191	2191	13 qualified.
2192	2192	14 The Department of Commerce and Economic Opportunity shall
2193	2193	15 grant a certificate of exemption under this item (32) to
2194	2194	16 qualified data centers as defined by Section 605-1025 of the
2195	2195	17 Department of Commerce and Economic Opportunity Law of the
2196	2196	18 Civil Administrative Code of Illinois.
2197	2197	19 For the purposes of this item (32):
2198	2198	20 "Data center" means a building or a series of
2199	2199	21 buildings rehabilitated or constructed to house working
2200	2200	22 servers in one physical location or multiple sites within
2201	2201	23 the State of Illinois.
2202	2202	24 "Qualified tangible personal property" means:
2203	2203	25 electrical systems and equipment; climate control and
2204	2204	26 chilling equipment and systems; mechanical systems and
2205	2205
2206	2206
2207	2207
2208	2208
2209	2209
2210	2210	SB1350 - 59 - LRB103 27798 HLH 54176 b
2211	2211
2212	2212
2213	2213	SB1350- 60 -LRB103 27798 HLH 54176 b SB1350 - 60 - LRB103 27798 HLH 54176 b
2214	2214	SB1350 - 60 - LRB103 27798 HLH 54176 b
2215	2215	1 equipment; monitoring and secure systems; emergency
2216	2216	2 generators; hardware; computers; servers; data storage
2217	2217	3 devices; network connectivity equipment; racks; cabinets;
2218	2218	4 telecommunications cabling infrastructure; raised floor
2219	2219	5 systems; peripheral components or systems; software;
2220	2220	6 mechanical, electrical, or plumbing systems; battery
2221	2221	7 systems; cooling systems and towers; temperature control
2222	2222	8 systems; other cabling; and other data center
2223	2223	9 infrastructure equipment and systems necessary to operate
2224	2224	10 qualified tangible personal property, including fixtures;
2225	2225	11 and component parts of any of the foregoing, including
2226	2226	12 installation, maintenance, repair, refurbishment, and
2227	2227	13 replacement of qualified tangible personal property to
2228	2228	14 generate, transform, transmit, distribute, or manage
2229	2229	15 electricity necessary to operate qualified tangible
2230	2230	16 personal property; and all other tangible personal
2231	2231	17 property that is essential to the operations of a computer
2232	2232	18 data center. The term "qualified tangible personal
2233	2233	19 property" also includes building materials physically
2234	2234	20 incorporated in to the qualifying data center. To document
2235	2235	21 the exemption allowed under this Section, the retailer
2236	2236	22 must obtain from the purchaser a copy of the certificate
2237	2237	23 of eligibility issued by the Department of Commerce and
2238	2238	24 Economic Opportunity.
2239	2239	25 This item (32) is exempt from the provisions of Section
2240	2240	26 3-55.
2241	2241
2242	2242
2243	2243
2244	2244
2245	2245
2246	2246	SB1350 - 60 - LRB103 27798 HLH 54176 b
2247	2247
2248	2248
2249	2249	SB1350- 61 -LRB103 27798 HLH 54176 b SB1350 - 61 - LRB103 27798 HLH 54176 b
2250	2250	SB1350 - 61 - LRB103 27798 HLH 54176 b
2251	2251	1 (33) Beginning July 1, 2022, breast pumps, breast pump
2252	2252	2 collection and storage supplies, and breast pump kits. This
2253	2253	3 item (33) is exempt from the provisions of Section 3-55. As
2254	2254	4 used in this item (33):
2255	2255	5 "Breast pump" means an electrically controlled or
2256	2256	6 manually controlled pump device designed or marketed to be
2257	2257	7 used to express milk from a human breast during lactation,
2258	2258	8 including the pump device and any battery, AC adapter, or
2259	2259	9 other power supply unit that is used to power the pump
2260	2260	10 device and is packaged and sold with the pump device at the
2261	2261	11 time of sale.
2262	2262	12 "Breast pump collection and storage supplies" means
2263	2263	13 items of tangible personal property designed or marketed
2264	2264	14 to be used in conjunction with a breast pump to collect
2265	2265	15 milk expressed from a human breast and to store collected
2266	2266	16 milk until it is ready for consumption.
2267	2267	17 "Breast pump collection and storage supplies"
2268	2268	18 includes, but is not limited to: breast shields and breast
2269	2269	19 shield connectors; breast pump tubes and tubing adapters;
2270	2270	20 breast pump valves and membranes; backflow protectors and
2271	2271	21 backflow protector adaptors; bottles and bottle caps
2272	2272	22 specific to the operation of the breast pump; and breast
2273	2273	23 milk storage bags.
2274	2274	24 "Breast pump collection and storage supplies" does not
2275	2275	25 include: (1) bottles and bottle caps not specific to the
2276	2276	26 operation of the breast pump; (2) breast pump travel bags
2277	2277
2278	2278
2279	2279
2280	2280
2281	2281
2282	2282	SB1350 - 61 - LRB103 27798 HLH 54176 b
2283	2283
2284	2284
2285	2285	SB1350- 62 -LRB103 27798 HLH 54176 b SB1350 - 62 - LRB103 27798 HLH 54176 b
2286	2286	SB1350 - 62 - LRB103 27798 HLH 54176 b
2287	2287	1 and other similar carrying accessories, including ice
2288	2288	2 packs, labels, and other similar products; (3) breast pump
2289	2289	3 cleaning supplies; (4) nursing bras, bra pads, breast
2290	2290	4 shells, and other similar products; and (5) creams,
2291	2291	5 ointments, and other similar products that relieve
2292	2292	6 breastfeeding-related symptoms or conditions of the
2293	2293	7 breasts or nipples, unless sold as part of a breast pump
2294	2294	8 kit that is pre-packaged by the breast pump manufacturer
2295	2295	9 or distributor.
2296	2296	10 "Breast pump kit" means a kit that: (1) contains no
2297	2297	11 more than a breast pump, breast pump collection and
2298	2298	12 storage supplies, a rechargeable battery for operating the
2299	2299	13 breast pump, a breastmilk cooler, bottle stands, ice
2300	2300	14 packs, and a breast pump carrying case; and (2) is
2301	2301	15 pre-packaged as a breast pump kit by the breast pump
2302	2302	16 manufacturer or distributor.
2303	2303	17 (34) (33) Tangible personal property sold by or on behalf
2304	2304	18 of the State Treasurer pursuant to the Revised Uniform
2305	2305	19 Unclaimed Property Act. This item (34) (33) is exempt from the
2306	2306	20 provisions of Section 3-55.
2307	2307	21 (35) Qualified tangible personal property used in the
2308	2308	22 construction or operation of a mega project for which a
2309	2309	23 certificate has been issued by the Department of Revenue as
2310	2310	24 described and defined in Division 22 of Article 10 of the
2311	2311	25 Property Tax Code, whether that tangible personal property is
2312	2312	26 purchased by the owner, operator, or tenant of the mega
2313	2313
2314	2314
2315	2315
2316	2316
2317	2317
2318	2318	SB1350 - 62 - LRB103 27798 HLH 54176 b
2319	2319
2320	2320
2321	2321	SB1350- 63 -LRB103 27798 HLH 54176 b SB1350 - 63 - LRB103 27798 HLH 54176 b
2322	2322	SB1350 - 63 - LRB103 27798 HLH 54176 b
2323	2323	1 project or by a contractor or subcontractor of the owner,
2324	2324	2 operator, or tenant.
2325	2325	3 For the purposes of this item (35):
2326	2326	4 "Facility" means a building or series of buildings.
2327	2327	5 "Mega project" means a facility that is rehabilitated or
2328	2328	6 constructed as described in Division 22 of Article 10 of the
2329	2329	7 Property Tax Code.
2330	2330	8 "Qualified tangible personal property" means: electrical
2331	2331	9 systems and equipment; climate control and chilling equipment
2332	2332	10 and systems; mechanical systems and equipment; monitoring and
2333	2333	11 secure systems; emergency generators; hardware; computers;
2334	2334	12 servers; data storage devices; network connectivity equipment;
2335	2335	13 racks; cabinets; telecommunications cabling infrastructure;
2336	2336	14 raised floor systems; peripheral components or systems;
2337	2337	15 software; mechanical, electrical, or plumbing systems; battery
2338	2338	16 systems; cooling systems and towers; temperature control
2339	2339	17 systems; other cabling; and other data center infrastructure
2340	2340	18 equipment and systems necessary to operate qualified tangible
2341	2341	19 personal property, including fixtures; and component parts of
2342	2342	20 any of the foregoing, including installation, maintenance,
2343	2343	21 repair, refurbishment, and replacement of qualified tangible
2344	2344	22 personal property to generate, transform, transmit,
2345	2345	23 distribute, or manage electricity necessary to operate
2346	2346	24 qualified tangible personal property; and all other tangible
2347	2347	25 personal property that is essential to the operations of a
2348	2348	26 mega project. The term "qualified tangible personal property"
2349	2349
2350	2350
2351	2351
2352	2352
2353	2353
2354	2354	SB1350 - 63 - LRB103 27798 HLH 54176 b
2355	2355
2356	2356
2357	2357	SB1350- 64 -LRB103 27798 HLH 54176 b SB1350 - 64 - LRB103 27798 HLH 54176 b
2358	2358	SB1350 - 64 - LRB103 27798 HLH 54176 b
2359	2359	1 also includes building materials to be incorporated into the
2360	2360	2 mega project. To document the exemption allowed under this
2361	2361	3 Section, the retailer, contractor or subcontractor or supplier
2362	2362	4 must obtain from the purchaser a copy of the certificate
2363	2363	5 issued by the Department of Revenue for the mega project as
2364	2364	6 described and defined in Division 22 of Article 10 of the
2365	2365	7 Property Tax Code.
2366	2366	8 This item (35) is exempt from the provisions of Section
2367	2367	9 3-55.
2368	2368	10 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
2369	2369	11 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2370	2370	12 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2371	2371	13 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
2372	2372	14 Section 20. The Retailers' Occupation Tax Act is amended
2373	2373	15 by changing Section 2-5 as follows:
2374	2374	16 (35 ILCS 120/2-5)
2375	2375	17 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2376	2376	18 the sale of the following tangible personal property are
2377	2377	19 exempt from the tax imposed by this Act:
2378	2378	20 (1) Farm chemicals.
2379	2379	21 (2) Farm machinery and equipment, both new and used,
2380	2380	22 including that manufactured on special order, certified by
2381	2381	23 the purchaser to be used primarily for production
2382	2382	24 agriculture or State or federal agricultural programs,
2383	2383
2384	2384
2385	2385
2386	2386
2387	2387
2388	2388	SB1350 - 64 - LRB103 27798 HLH 54176 b
2389	2389
2390	2390
2391	2391	SB1350- 65 -LRB103 27798 HLH 54176 b SB1350 - 65 - LRB103 27798 HLH 54176 b
2392	2392	SB1350 - 65 - LRB103 27798 HLH 54176 b
2393	2393	1 including individual replacement parts for the machinery
2394	2394	2 and equipment, including machinery and equipment purchased
2395	2395	3 for lease, and including implements of husbandry defined
2396	2396	4 in Section 1-130 of the Illinois Vehicle Code, farm
2397	2397	5 machinery and agricultural chemical and fertilizer
2398	2398	6 spreaders, and nurse wagons required to be registered
2399	2399	7 under Section 3-809 of the Illinois Vehicle Code, but
2400	2400	8 excluding other motor vehicles required to be registered
2401	2401	9 under the Illinois Vehicle Code. Horticultural polyhouses
2402	2402	10 or hoop houses used for propagating, growing, or
2403	2403	11 overwintering plants shall be considered farm machinery
2404	2404	12 and equipment under this item (2). Agricultural chemical
2405	2405	13 tender tanks and dry boxes shall include units sold
2406	2406	14 separately from a motor vehicle required to be licensed
2407	2407	15 and units sold mounted on a motor vehicle required to be
2408	2408	16 licensed, if the selling price of the tender is separately
2409	2409	17 stated.
2410	2410	18 Farm machinery and equipment shall include precision
2411	2411	19 farming equipment that is installed or purchased to be
2412	2412	20 installed on farm machinery and equipment including, but
2413	2413	21 not limited to, tractors, harvesters, sprayers, planters,
2414	2414	22 seeders, or spreaders. Precision farming equipment
2415	2415	23 includes, but is not limited to, soil testing sensors,
2416	2416	24 computers, monitors, software, global positioning and
2417	2417	25 mapping systems, and other such equipment.
2418	2418	26 Farm machinery and equipment also includes computers,
2419	2419
2420	2420
2421	2421
2422	2422
2423	2423
2424	2424	SB1350 - 65 - LRB103 27798 HLH 54176 b
2425	2425
2426	2426
2427	2427	SB1350- 66 -LRB103 27798 HLH 54176 b SB1350 - 66 - LRB103 27798 HLH 54176 b
2428	2428	SB1350 - 66 - LRB103 27798 HLH 54176 b
2429	2429	1 sensors, software, and related equipment used primarily in
2430	2430	2 the computer-assisted operation of production agriculture
2431	2431	3 facilities, equipment, and activities such as, but not
2432	2432	4 limited to, the collection, monitoring, and correlation of
2433	2433	5 animal and crop data for the purpose of formulating animal
2434	2434	6 diets and agricultural chemicals. This item (2) is exempt
2435	2435	7 from the provisions of Section 2-70.
2436	2436	8 (3) Until July 1, 2003, distillation machinery and
2437	2437	9 equipment, sold as a unit or kit, assembled or installed
2438	2438	10 by the retailer, certified by the user to be used only for
2439	2439	11 the production of ethyl alcohol that will be used for
2440	2440	12 consumption as motor fuel or as a component of motor fuel
2441	2441	13 for the personal use of the user, and not subject to sale
2442	2442	14 or resale.
2443	2443	15 (4) Until July 1, 2003 and beginning again September
2444	2444	16 1, 2004 through August 30, 2014, graphic arts machinery
2445	2445	17 and equipment, including repair and replacement parts,
2446	2446	18 both new and used, and including that manufactured on
2447	2447	19 special order or purchased for lease, certified by the
2448	2448	20 purchaser to be used primarily for graphic arts
2449	2449	21 production. Equipment includes chemicals or chemicals
2450	2450	22 acting as catalysts but only if the chemicals or chemicals
2451	2451	23 acting as catalysts effect a direct and immediate change
2452	2452	24 upon a graphic arts product. Beginning on July 1, 2017,
2453	2453	25 graphic arts machinery and equipment is included in the
2454	2454	26 manufacturing and assembling machinery and equipment
2455	2455
2456	2456
2457	2457
2458	2458
2459	2459
2460	2460	SB1350 - 66 - LRB103 27798 HLH 54176 b
2461	2461
2462	2462
2463	2463	SB1350- 67 -LRB103 27798 HLH 54176 b SB1350 - 67 - LRB103 27798 HLH 54176 b
2464	2464	SB1350 - 67 - LRB103 27798 HLH 54176 b
2465	2465	1 exemption under paragraph (14).
2466	2466	2 (5) A motor vehicle that is used for automobile
2467	2467	3 renting, as defined in the Automobile Renting Occupation
2468	2468	4 and Use Tax Act. This paragraph is exempt from the
2469	2469	5 provisions of Section 2-70.
2470	2470	6 (6) Personal property sold by a teacher-sponsored
2471	2471	7 student organization affiliated with an elementary or
2472	2472	8 secondary school located in Illinois.
2473	2473	9 (7) Until July 1, 2003, proceeds of that portion of
2474	2474	10 the selling price of a passenger car the sale of which is
2475	2475	11 subject to the Replacement Vehicle Tax.
2476	2476	12 (8) Personal property sold to an Illinois county fair
2477	2477	13 association for use in conducting, operating, or promoting
2478	2478	14 the county fair.
2479	2479	15 (9) Personal property sold to a not-for-profit arts or
2480	2480	16 cultural organization that establishes, by proof required
2481	2481	17 by the Department by rule, that it has received an
2482	2482	18 exemption under Section 501(c)(3) of the Internal Revenue
2483	2483	19 Code and that is organized and operated primarily for the
2484	2484	20 presentation or support of arts or cultural programming,
2485	2485	21 activities, or services. These organizations include, but
2486	2486	22 are not limited to, music and dramatic arts organizations
2487	2487	23 such as symphony orchestras and theatrical groups, arts
2488	2488	24 and cultural service organizations, local arts councils,
2489	2489	25 visual arts organizations, and media arts organizations.
2490	2490	26 On and after July 1, 2001 (the effective date of Public Act
2491	2491
2492	2492
2493	2493
2494	2494
2495	2495
2496	2496	SB1350 - 67 - LRB103 27798 HLH 54176 b
2497	2497
2498	2498
2499	2499	SB1350- 68 -LRB103 27798 HLH 54176 b SB1350 - 68 - LRB103 27798 HLH 54176 b
2500	2500	SB1350 - 68 - LRB103 27798 HLH 54176 b
2501	2501	1 92-35), however, an entity otherwise eligible for this
2502	2502	2 exemption shall not make tax-free purchases unless it has
2503	2503	3 an active identification number issued by the Department.
2504	2504	4 (10) Personal property sold by a corporation, society,
2505	2505	5 association, foundation, institution, or organization,
2506	2506	6 other than a limited liability company, that is organized
2507	2507	7 and operated as a not-for-profit service enterprise for
2508	2508	8 the benefit of persons 65 years of age or older if the
2509	2509	9 personal property was not purchased by the enterprise for
2510	2510	10 the purpose of resale by the enterprise.
2511	2511	11 (11) Personal property sold to a governmental body, to
2512	2512	12 a corporation, society, association, foundation, or
2513	2513	13 institution organized and operated exclusively for
2514	2514	14 charitable, religious, or educational purposes, or to a
2515	2515	15 not-for-profit corporation, society, association,
2516	2516	16 foundation, institution, or organization that has no
2517	2517	17 compensated officers or employees and that is organized
2518	2518	18 and operated primarily for the recreation of persons 55
2519	2519	19 years of age or older. A limited liability company may
2520	2520	20 qualify for the exemption under this paragraph only if the
2521	2521	21 limited liability company is organized and operated
2522	2522	22 exclusively for educational purposes. On and after July 1,
2523	2523	23 1987, however, no entity otherwise eligible for this
2524	2524	24 exemption shall make tax-free purchases unless it has an
2525	2525	25 active identification number issued by the Department.
2526	2526	26 (12) (Blank).
2527	2527
2528	2528
2529	2529
2530	2530
2531	2531
2532	2532	SB1350 - 68 - LRB103 27798 HLH 54176 b
2533	2533
2534	2534
2535	2535	SB1350- 69 -LRB103 27798 HLH 54176 b SB1350 - 69 - LRB103 27798 HLH 54176 b
2536	2536	SB1350 - 69 - LRB103 27798 HLH 54176 b
2537	2537	1 (12-5) On and after July 1, 2003 and through June 30,
2538	2538	2 2004, motor vehicles of the second division with a gross
2539	2539	3 vehicle weight in excess of 8,000 pounds that are subject
2540	2540	4 to the commercial distribution fee imposed under Section
2541	2541	5 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2542	2542	6 2004 and through June 30, 2005, the use in this State of
2543	2543	7 motor vehicles of the second division: (i) with a gross
2544	2544	8 vehicle weight rating in excess of 8,000 pounds; (ii) that
2545	2545	9 are subject to the commercial distribution fee imposed
2546	2546	10 under Section 3-815.1 of the Illinois Vehicle Code; and
2547	2547	11 (iii) that are primarily used for commercial purposes.
2548	2548	12 Through June 30, 2005, this exemption applies to repair
2549	2549	13 and replacement parts added after the initial purchase of
2550	2550	14 such a motor vehicle if that motor vehicle is used in a
2551	2551	15 manner that would qualify for the rolling stock exemption
2552	2552	16 otherwise provided for in this Act. For purposes of this
2553	2553	17 paragraph, "used for commercial purposes" means the
2554	2554	18 transportation of persons or property in furtherance of
2555	2555	19 any commercial or industrial enterprise whether for-hire
2556	2556	20 or not.
2557	2557	21 (13) Proceeds from sales to owners, lessors, or
2558	2558	22 shippers of tangible personal property that is utilized by
2559	2559	23 interstate carriers for hire for use as rolling stock
2560	2560	24 moving in interstate commerce and equipment operated by a
2561	2561	25 telecommunications provider, licensed as a common carrier
2562	2562	26 by the Federal Communications Commission, which is
2563	2563
2564	2564
2565	2565
2566	2566
2567	2567
2568	2568	SB1350 - 69 - LRB103 27798 HLH 54176 b
2569	2569
2570	2570
2571	2571	SB1350- 70 -LRB103 27798 HLH 54176 b SB1350 - 70 - LRB103 27798 HLH 54176 b
2572	2572	SB1350 - 70 - LRB103 27798 HLH 54176 b
2573	2573	1 permanently installed in or affixed to aircraft moving in
2574	2574	2 interstate commerce.
2575	2575	3 (14) Machinery and equipment that will be used by the
2576	2576	4 purchaser, or a lessee of the purchaser, primarily in the
2577	2577	5 process of manufacturing or assembling tangible personal
2578	2578	6 property for wholesale or retail sale or lease, whether
2579	2579	7 the sale or lease is made directly by the manufacturer or
2580	2580	8 by some other person, whether the materials used in the
2581	2581	9 process are owned by the manufacturer or some other
2582	2582	10 person, or whether the sale or lease is made apart from or
2583	2583	11 as an incident to the seller's engaging in the service
2584	2584	12 occupation of producing machines, tools, dies, jigs,
2585	2585	13 patterns, gauges, or other similar items of no commercial
2586	2586	14 value on special order for a particular purchaser. The
2587	2587	15 exemption provided by this paragraph (14) does not include
2588	2588	16 machinery and equipment used in (i) the generation of
2589	2589	17 electricity for wholesale or retail sale; (ii) the
2590	2590	18 generation or treatment of natural or artificial gas for
2591	2591	19 wholesale or retail sale that is delivered to customers
2592	2592	20 through pipes, pipelines, or mains; or (iii) the treatment
2593	2593	21 of water for wholesale or retail sale that is delivered to
2594	2594	22 customers through pipes, pipelines, or mains. The
2595	2595	23 provisions of Public Act 98-583 are declaratory of
2596	2596	24 existing law as to the meaning and scope of this
2597	2597	25 exemption. Beginning on July 1, 2017, the exemption
2598	2598	26 provided by this paragraph (14) includes, but is not
2599	2599
2600	2600
2601	2601
2602	2602
2603	2603
2604	2604	SB1350 - 70 - LRB103 27798 HLH 54176 b
2605	2605
2606	2606
2607	2607	SB1350- 71 -LRB103 27798 HLH 54176 b SB1350 - 71 - LRB103 27798 HLH 54176 b
2608	2608	SB1350 - 71 - LRB103 27798 HLH 54176 b
2609	2609	1 limited to, graphic arts machinery and equipment, as
2610	2610	2 defined in paragraph (4) of this Section.
2611	2611	3 (15) Proceeds of mandatory service charges separately
2612	2612	4 stated on customers' bills for purchase and consumption of
2613	2613	5 food and beverages, to the extent that the proceeds of the
2614	2614	6 service charge are in fact turned over as tips or as a
2615	2615	7 substitute for tips to the employees who participate
2616	2616	8 directly in preparing, serving, hosting or cleaning up the
2617	2617	9 food or beverage function with respect to which the
2618	2618	10 service charge is imposed.
2619	2619	11 (16) Tangible personal property sold to a purchaser if
2620	2620	12 the purchaser is exempt from use tax by operation of
2621	2621	13 federal law. This paragraph is exempt from the provisions
2622	2622	14 of Section 2-70.
2623	2623	15 (17) Tangible personal property sold to a common
2624	2624	16 carrier by rail or motor that receives the physical
2625	2625	17 possession of the property in Illinois and that transports
2626	2626	18 the property, or shares with another common carrier in the
2627	2627	19 transportation of the property, out of Illinois on a
2628	2628	20 standard uniform bill of lading showing the seller of the
2629	2629	21 property as the shipper or consignor of the property to a
2630	2630	22 destination outside Illinois, for use outside Illinois.
2631	2631	23 (18) Legal tender, currency, medallions, or gold or
2632	2632	24 silver coinage issued by the State of Illinois, the
2633	2633	25 government of the United States of America, or the
2634	2634	26 government of any foreign country, and bullion.
2635	2635
2636	2636
2637	2637
2638	2638
2639	2639
2640	2640	SB1350 - 71 - LRB103 27798 HLH 54176 b
2641	2641
2642	2642
2643	2643	SB1350- 72 -LRB103 27798 HLH 54176 b SB1350 - 72 - LRB103 27798 HLH 54176 b
2644	2644	SB1350 - 72 - LRB103 27798 HLH 54176 b
2645	2645	1 (19) Until July 1, 2003, oil field exploration,
2646	2646	2 drilling, and production equipment, including (i) rigs and
2647	2647	3 parts of rigs, rotary rigs, cable tool rigs, and workover
2648	2648	4 rigs, (ii) pipe and tubular goods, including casing and
2649	2649	5 drill strings, (iii) pumps and pump-jack units, (iv)
2650	2650	6 storage tanks and flow lines, (v) any individual
2651	2651	7 replacement part for oil field exploration, drilling, and
2652	2652	8 production equipment, and (vi) machinery and equipment
2653	2653	9 purchased for lease; but excluding motor vehicles required
2654	2654	10 to be registered under the Illinois Vehicle Code.
2655	2655	11 (20) Photoprocessing machinery and equipment,
2656	2656	12 including repair and replacement parts, both new and used,
2657	2657	13 including that manufactured on special order, certified by
2658	2658	14 the purchaser to be used primarily for photoprocessing,
2659	2659	15 and including photoprocessing machinery and equipment
2660	2660	16 purchased for lease.
2661	2661	17 (21) Until July 1, 2028, coal and aggregate
2662	2662	18 exploration, mining, off-highway hauling, processing,
2663	2663	19 maintenance, and reclamation equipment, including
2664	2664	20 replacement parts and equipment, and including equipment
2665	2665	21 purchased for lease, but excluding motor vehicles required
2666	2666	22 to be registered under the Illinois Vehicle Code. The
2667	2667	23 changes made to this Section by Public Act 97-767 apply on
2668	2668	24 and after July 1, 2003, but no claim for credit or refund
2669	2669	25 is allowed on or after August 16, 2013 (the effective date
2670	2670	26 of Public Act 98-456) for such taxes paid during the
2671	2671
2672	2672
2673	2673
2674	2674
2675	2675
2676	2676	SB1350 - 72 - LRB103 27798 HLH 54176 b
2677	2677
2678	2678
2679	2679	SB1350- 73 -LRB103 27798 HLH 54176 b SB1350 - 73 - LRB103 27798 HLH 54176 b
2680	2680	SB1350 - 73 - LRB103 27798 HLH 54176 b
2681	2681	1 period beginning July 1, 2003 and ending on August 16,
2682	2682	2 2013 (the effective date of Public Act 98-456).
2683	2683	3 (22) Until June 30, 2013, fuel and petroleum products
2684	2684	4 sold to or used by an air carrier, certified by the carrier
2685	2685	5 to be used for consumption, shipment, or storage in the
2686	2686	6 conduct of its business as an air common carrier, for a
2687	2687	7 flight destined for or returning from a location or
2688	2688	8 locations outside the United States without regard to
2689	2689	9 previous or subsequent domestic stopovers.
2690	2690	10 Beginning July 1, 2013, fuel and petroleum products
2691	2691	11 sold to or used by an air carrier, certified by the carrier
2692	2692	12 to be used for consumption, shipment, or storage in the
2693	2693	13 conduct of its business as an air common carrier, for a
2694	2694	14 flight that (i) is engaged in foreign trade or is engaged
2695	2695	15 in trade between the United States and any of its
2696	2696	16 possessions and (ii) transports at least one individual or
2697	2697	17 package for hire from the city of origination to the city
2698	2698	18 of final destination on the same aircraft, without regard
2699	2699	19 to a change in the flight number of that aircraft.
2700	2700	20 (23) A transaction in which the purchase order is
2701	2701	21 received by a florist who is located outside Illinois, but
2702	2702	22 who has a florist located in Illinois deliver the property
2703	2703	23 to the purchaser or the purchaser's donee in Illinois.
2704	2704	24 (24) Fuel consumed or used in the operation of ships,
2705	2705	25 barges, or vessels that are used primarily in or for the
2706	2706	26 transportation of property or the conveyance of persons
2707	2707
2708	2708
2709	2709
2710	2710
2711	2711
2712	2712	SB1350 - 73 - LRB103 27798 HLH 54176 b
2713	2713
2714	2714
2715	2715	SB1350- 74 -LRB103 27798 HLH 54176 b SB1350 - 74 - LRB103 27798 HLH 54176 b
2716	2716	SB1350 - 74 - LRB103 27798 HLH 54176 b
2717	2717	1 for hire on rivers bordering on this State if the fuel is
2718	2718	2 delivered by the seller to the purchaser's barge, ship, or
2719	2719	3 vessel while it is afloat upon that bordering river.
2720	2720	4 (25) Except as provided in item (25-5) of this
2721	2721	5 Section, a motor vehicle sold in this State to a
2722	2722	6 nonresident even though the motor vehicle is delivered to
2723	2723	7 the nonresident in this State, if the motor vehicle is not
2724	2724	8 to be titled in this State, and if a drive-away permit is
2725	2725	9 issued to the motor vehicle as provided in Section 3-603
2726	2726	10 of the Illinois Vehicle Code or if the nonresident
2727	2727	11 purchaser has vehicle registration plates to transfer to
2728	2728	12 the motor vehicle upon returning to his or her home state.
2729	2729	13 The issuance of the drive-away permit or having the
2730	2730	14 out-of-state registration plates to be transferred is
2731	2731	15 prima facie evidence that the motor vehicle will not be
2732	2732	16 titled in this State.
2733	2733	17 (25-5) The exemption under item (25) does not apply if
2734	2734	18 the state in which the motor vehicle will be titled does
2735	2735	19 not allow a reciprocal exemption for a motor vehicle sold
2736	2736	20 and delivered in that state to an Illinois resident but
2737	2737	21 titled in Illinois. The tax collected under this Act on
2738	2738	22 the sale of a motor vehicle in this State to a resident of
2739	2739	23 another state that does not allow a reciprocal exemption
2740	2740	24 shall be imposed at a rate equal to the state's rate of tax
2741	2741	25 on taxable property in the state in which the purchaser is
2742	2742	26 a resident, except that the tax shall not exceed the tax
2743	2743
2744	2744
2745	2745
2746	2746
2747	2747
2748	2748	SB1350 - 74 - LRB103 27798 HLH 54176 b
2749	2749
2750	2750
2751	2751	SB1350- 75 -LRB103 27798 HLH 54176 b SB1350 - 75 - LRB103 27798 HLH 54176 b
2752	2752	SB1350 - 75 - LRB103 27798 HLH 54176 b
2753	2753	1 that would otherwise be imposed under this Act. At the
2754	2754	2 time of the sale, the purchaser shall execute a statement,
2755	2755	3 signed under penalty of perjury, of his or her intent to
2756	2756	4 title the vehicle in the state in which the purchaser is a
2757	2757	5 resident within 30 days after the sale and of the fact of
2758	2758	6 the payment to the State of Illinois of tax in an amount
2759	2759	7 equivalent to the state's rate of tax on taxable property
2760	2760	8 in his or her state of residence and shall submit the
2761	2761	9 statement to the appropriate tax collection agency in his
2762	2762	10 or her state of residence. In addition, the retailer must
2763	2763	11 retain a signed copy of the statement in his or her
2764	2764	12 records. Nothing in this item shall be construed to
2765	2765	13 require the removal of the vehicle from this state
2766	2766	14 following the filing of an intent to title the vehicle in
2767	2767	15 the purchaser's state of residence if the purchaser titles
2768	2768	16 the vehicle in his or her state of residence within 30 days
2769	2769	17 after the date of sale. The tax collected under this Act in
2770	2770	18 accordance with this item (25-5) shall be proportionately
2771	2771	19 distributed as if the tax were collected at the 6.25%
2772	2772	20 general rate imposed under this Act.
2773	2773	21 (25-7) Beginning on July 1, 2007, no tax is imposed
2774	2774	22 under this Act on the sale of an aircraft, as defined in
2775	2775	23 Section 3 of the Illinois Aeronautics Act, if all of the
2776	2776	24 following conditions are met:
2777	2777	25 (1) the aircraft leaves this State within 15 days
2778	2778	26 after the later of either the issuance of the final
2779	2779
2780	2780
2781	2781
2782	2782
2783	2783
2784	2784	SB1350 - 75 - LRB103 27798 HLH 54176 b
2785	2785
2786	2786
2787	2787	SB1350- 76 -LRB103 27798 HLH 54176 b SB1350 - 76 - LRB103 27798 HLH 54176 b
2788	2788	SB1350 - 76 - LRB103 27798 HLH 54176 b
2789	2789	1 billing for the sale of the aircraft, or the
2790	2790	2 authorized approval for return to service, completion
2791	2791	3 of the maintenance record entry, and completion of the
2792	2792	4 test flight and ground test for inspection, as
2793	2793	5 required by 14 CFR C.F.R. 91.407;
2794	2794	6 (2) the aircraft is not based or registered in
2795	2795	7 this State after the sale of the aircraft; and
2796	2796	8 (3) the seller retains in his or her books and
2797	2797	9 records and provides to the Department a signed and
2798	2798	10 dated certification from the purchaser, on a form
2799	2799	11 prescribed by the Department, certifying that the
2800	2800	12 requirements of this item (25-7) are met. The
2801	2801	13 certificate must also include the name and address of
2802	2802	14 the purchaser, the address of the location where the
2803	2803	15 aircraft is to be titled or registered, the address of
2804	2804	16 the primary physical location of the aircraft, and
2805	2805	17 other information that the Department may reasonably
2806	2806	18 require.
2807	2807	19 For purposes of this item (25-7):
2808	2808	20 "Based in this State" means hangared, stored, or
2809	2809	21 otherwise used, excluding post-sale customizations as
2810	2810	22 defined in this Section, for 10 or more days in each
2811	2811	23 12-month period immediately following the date of the sale
2812	2812	24 of the aircraft.
2813	2813	25 "Registered in this State" means an aircraft
2814	2814	26 registered with the Department of Transportation,
2815	2815
2816	2816
2817	2817
2818	2818
2819	2819
2820	2820	SB1350 - 76 - LRB103 27798 HLH 54176 b
2821	2821
2822	2822
2823	2823	SB1350- 77 -LRB103 27798 HLH 54176 b SB1350 - 77 - LRB103 27798 HLH 54176 b
2824	2824	SB1350 - 77 - LRB103 27798 HLH 54176 b
2825	2825	1 Aeronautics Division, or titled or registered with the
2826	2826	2 Federal Aviation Administration to an address located in
2827	2827	3 this State.
2828	2828	4 This paragraph (25-7) is exempt from the provisions of
2829	2829	5 Section 2-70.
2830	2830	6 (26) Semen used for artificial insemination of
2831	2831	7 livestock for direct agricultural production.
2832	2832	8 (27) Horses, or interests in horses, registered with
2833	2833	9 and meeting the requirements of any of the Arabian Horse
2834	2834	10 Club Registry of America, Appaloosa Horse Club, American
2835	2835	11 Quarter Horse Association, United States Trotting
2836	2836	12 Association, or Jockey Club, as appropriate, used for
2837	2837	13 purposes of breeding or racing for prizes. This item (27)
2838	2838	14 is exempt from the provisions of Section 2-70, and the
2839	2839	15 exemption provided for under this item (27) applies for
2840	2840	16 all periods beginning May 30, 1995, but no claim for
2841	2841	17 credit or refund is allowed on or after January 1, 2008
2842	2842	18 (the effective date of Public Act 95-88) for such taxes
2843	2843	19 paid during the period beginning May 30, 2000 and ending
2844	2844	20 on January 1, 2008 (the effective date of Public Act
2845	2845	21 95-88).
2846	2846	22 (28) Computers and communications equipment utilized
2847	2847	23 for any hospital purpose and equipment used in the
2848	2848	24 diagnosis, analysis, or treatment of hospital patients
2849	2849	25 sold to a lessor who leases the equipment, under a lease of
2850	2850	26 one year or longer executed or in effect at the time of the
2851	2851
2852	2852
2853	2853
2854	2854
2855	2855
2856	2856	SB1350 - 77 - LRB103 27798 HLH 54176 b
2857	2857
2858	2858
2859	2859	SB1350- 78 -LRB103 27798 HLH 54176 b SB1350 - 78 - LRB103 27798 HLH 54176 b
2860	2860	SB1350 - 78 - LRB103 27798 HLH 54176 b
2861	2861	1 purchase, to a hospital that has been issued an active tax
2862	2862	2 exemption identification number by the Department under
2863	2863	3 Section 1g of this Act.
2864	2864	4 (29) Personal property sold to a lessor who leases the
2865	2865	5 property, under a lease of one year or longer executed or
2866	2866	6 in effect at the time of the purchase, to a governmental
2867	2867	7 body that has been issued an active tax exemption
2868	2868	8 identification number by the Department under Section 1g
2869	2869	9 of this Act.
2870	2870	10 (30) Beginning with taxable years ending on or after
2871	2871	11 December 31, 1995 and ending with taxable years ending on
2872	2872	12 or before December 31, 2004, personal property that is
2873	2873	13 donated for disaster relief to be used in a State or
2874	2874	14 federally declared disaster area in Illinois or bordering
2875	2875	15 Illinois by a manufacturer or retailer that is registered
2876	2876	16 in this State to a corporation, society, association,
2877	2877	17 foundation, or institution that has been issued a sales
2878	2878	18 tax exemption identification number by the Department that
2879	2879	19 assists victims of the disaster who reside within the
2880	2880	20 declared disaster area.
2881	2881	21 (31) Beginning with taxable years ending on or after
2882	2882	22 December 31, 1995 and ending with taxable years ending on
2883	2883	23 or before December 31, 2004, personal property that is
2884	2884	24 used in the performance of infrastructure repairs in this
2885	2885	25 State, including but not limited to municipal roads and
2886	2886	26 streets, access roads, bridges, sidewalks, waste disposal
2887	2887
2888	2888
2889	2889
2890	2890
2891	2891
2892	2892	SB1350 - 78 - LRB103 27798 HLH 54176 b
2893	2893
2894	2894
2895	2895	SB1350- 79 -LRB103 27798 HLH 54176 b SB1350 - 79 - LRB103 27798 HLH 54176 b
2896	2896	SB1350 - 79 - LRB103 27798 HLH 54176 b
2897	2897	1 systems, water and sewer line extensions, water
2898	2898	2 distribution and purification facilities, storm water
2899	2899	3 drainage and retention facilities, and sewage treatment
2900	2900	4 facilities, resulting from a State or federally declared
2901	2901	5 disaster in Illinois or bordering Illinois when such
2902	2902	6 repairs are initiated on facilities located in the
2903	2903	7 declared disaster area within 6 months after the disaster.
2904	2904	8 (32) Beginning July 1, 1999, game or game birds sold
2905	2905	9 at a "game breeding and hunting preserve area" as that
2906	2906	10 term is used in the Wildlife Code. This paragraph is
2907	2907	11 exempt from the provisions of Section 2-70.
2908	2908	12 (33) A motor vehicle, as that term is defined in
2909	2909	13 Section 1-146 of the Illinois Vehicle Code, that is
2910	2910	14 donated to a corporation, limited liability company,
2911	2911	15 society, association, foundation, or institution that is
2912	2912	16 determined by the Department to be organized and operated
2913	2913	17 exclusively for educational purposes. For purposes of this
2914	2914	18 exemption, "a corporation, limited liability company,
2915	2915	19 society, association, foundation, or institution organized
2916	2916	20 and operated exclusively for educational purposes" means
2917	2917	21 all tax-supported public schools, private schools that
2918	2918	22 offer systematic instruction in useful branches of
2919	2919	23 learning by methods common to public schools and that
2920	2920	24 compare favorably in their scope and intensity with the
2921	2921	25 course of study presented in tax-supported schools, and
2922	2922	26 vocational or technical schools or institutes organized
2923	2923
2924	2924
2925	2925
2926	2926
2927	2927
2928	2928	SB1350 - 79 - LRB103 27798 HLH 54176 b
2929	2929
2930	2930
2931	2931	SB1350- 80 -LRB103 27798 HLH 54176 b SB1350 - 80 - LRB103 27798 HLH 54176 b
2932	2932	SB1350 - 80 - LRB103 27798 HLH 54176 b
2933	2933	1 and operated exclusively to provide a course of study of
2934	2934	2 not less than 6 weeks duration and designed to prepare
2935	2935	3 individuals to follow a trade or to pursue a manual,
2936	2936	4 technical, mechanical, industrial, business, or commercial
2937	2937	5 occupation.
2938	2938	6 (34) Beginning January 1, 2000, personal property,
2939	2939	7 including food, purchased through fundraising events for
2940	2940	8 the benefit of a public or private elementary or secondary
2941	2941	9 school, a group of those schools, or one or more school
2942	2942	10 districts if the events are sponsored by an entity
2943	2943	11 recognized by the school district that consists primarily
2944	2944	12 of volunteers and includes parents and teachers of the
2945	2945	13 school children. This paragraph does not apply to
2946	2946	14 fundraising events (i) for the benefit of private home
2947	2947	15 instruction or (ii) for which the fundraising entity
2948	2948	16 purchases the personal property sold at the events from
2949	2949	17 another individual or entity that sold the property for
2950	2950	18 the purpose of resale by the fundraising entity and that
2951	2951	19 profits from the sale to the fundraising entity. This
2952	2952	20 paragraph is exempt from the provisions of Section 2-70.
2953	2953	21 (35) Beginning January 1, 2000 and through December
2954	2954	22 31, 2001, new or used automatic vending machines that
2955	2955	23 prepare and serve hot food and beverages, including
2956	2956	24 coffee, soup, and other items, and replacement parts for
2957	2957	25 these machines. Beginning January 1, 2002 and through June
2958	2958	26 30, 2003, machines and parts for machines used in
2959	2959
2960	2960
2961	2961
2962	2962
2963	2963
2964	2964	SB1350 - 80 - LRB103 27798 HLH 54176 b
2965	2965
2966	2966
2967	2967	SB1350- 81 -LRB103 27798 HLH 54176 b SB1350 - 81 - LRB103 27798 HLH 54176 b
2968	2968	SB1350 - 81 - LRB103 27798 HLH 54176 b
2969	2969	1 commercial, coin-operated amusement and vending business
2970	2970	2 if a use or occupation tax is paid on the gross receipts
2971	2971	3 derived from the use of the commercial, coin-operated
2972	2972	4 amusement and vending machines. This paragraph is exempt
2973	2973	5 from the provisions of Section 2-70.
2974	2974	6 (35-5) Beginning August 23, 2001 and through June 30,
2975	2975	7 2016, food for human consumption that is to be consumed
2976	2976	8 off the premises where it is sold (other than alcoholic
2977	2977	9 beverages, soft drinks, and food that has been prepared
2978	2978	10 for immediate consumption) and prescription and
2979	2979	11 nonprescription medicines, drugs, medical appliances, and
2980	2980	12 insulin, urine testing materials, syringes, and needles
2981	2981	13 used by diabetics, for human use, when purchased for use
2982	2982	14 by a person receiving medical assistance under Article V
2983	2983	15 of the Illinois Public Aid Code who resides in a licensed
2984	2984	16 long-term care facility, as defined in the Nursing Home
2985	2985	17 Care Act, or a licensed facility as defined in the ID/DD
2986	2986	18 Community Care Act, the MC/DD Act, or the Specialized
2987	2987	19 Mental Health Rehabilitation Act of 2013.
2988	2988	20 (36) Beginning August 2, 2001, computers and
2989	2989	21 communications equipment utilized for any hospital purpose
2990	2990	22 and equipment used in the diagnosis, analysis, or
2991	2991	23 treatment of hospital patients sold to a lessor who leases
2992	2992	24 the equipment, under a lease of one year or longer
2993	2993	25 executed or in effect at the time of the purchase, to a
2994	2994	26 hospital that has been issued an active tax exemption
2995	2995
2996	2996
2997	2997
2998	2998
2999	2999
3000	3000	SB1350 - 81 - LRB103 27798 HLH 54176 b
3001	3001
3002	3002
3003	3003	SB1350- 82 -LRB103 27798 HLH 54176 b SB1350 - 82 - LRB103 27798 HLH 54176 b
3004	3004	SB1350 - 82 - LRB103 27798 HLH 54176 b
3005	3005	1 identification number by the Department under Section 1g
3006	3006	2 of this Act. This paragraph is exempt from the provisions
3007	3007	3 of Section 2-70.
3008	3008	4 (37) Beginning August 2, 2001, personal property sold
3009	3009	5 to a lessor who leases the property, under a lease of one
3010	3010	6 year or longer executed or in effect at the time of the
3011	3011	7 purchase, to a governmental body that has been issued an
3012	3012	8 active tax exemption identification number by the
3013	3013	9 Department under Section 1g of this Act. This paragraph is
3014	3014	10 exempt from the provisions of Section 2-70.
3015	3015	11 (38) Beginning on January 1, 2002 and through June 30,
3016	3016	12 2016, tangible personal property purchased from an
3017	3017	13 Illinois retailer by a taxpayer engaged in centralized
3018	3018	14 purchasing activities in Illinois who will, upon receipt
3019	3019	15 of the property in Illinois, temporarily store the
3020	3020	16 property in Illinois (i) for the purpose of subsequently
3021	3021	17 transporting it outside this State for use or consumption
3022	3022	18 thereafter solely outside this State or (ii) for the
3023	3023	19 purpose of being processed, fabricated, or manufactured
3024	3024	20 into, attached to, or incorporated into other tangible
3025	3025	21 personal property to be transported outside this State and
3026	3026	22 thereafter used or consumed solely outside this State. The
3027	3027	23 Director of Revenue shall, pursuant to rules adopted in
3028	3028	24 accordance with the Illinois Administrative Procedure Act,
3029	3029	25 issue a permit to any taxpayer in good standing with the
3030	3030	26 Department who is eligible for the exemption under this
3031	3031
3032	3032
3033	3033
3034	3034
3035	3035
3036	3036	SB1350 - 82 - LRB103 27798 HLH 54176 b
3037	3037
3038	3038
3039	3039	SB1350- 83 -LRB103 27798 HLH 54176 b SB1350 - 83 - LRB103 27798 HLH 54176 b
3040	3040	SB1350 - 83 - LRB103 27798 HLH 54176 b
3041	3041	1 paragraph (38). The permit issued under this paragraph
3042	3042	2 (38) shall authorize the holder, to the extent and in the
3043	3043	3 manner specified in the rules adopted under this Act, to
3044	3044	4 purchase tangible personal property from a retailer exempt
3045	3045	5 from the taxes imposed by this Act. Taxpayers shall
3046	3046	6 maintain all necessary books and records to substantiate
3047	3047	7 the use and consumption of all such tangible personal
3048	3048	8 property outside of the State of Illinois.
3049	3049	9 (39) Beginning January 1, 2008, tangible personal
3050	3050	10 property used in the construction or maintenance of a
3051	3051	11 community water supply, as defined under Section 3.145 of
3052	3052	12 the Environmental Protection Act, that is operated by a
3053	3053	13 not-for-profit corporation that holds a valid water supply
3054	3054	14 permit issued under Title IV of the Environmental
3055	3055	15 Protection Act. This paragraph is exempt from the
3056	3056	16 provisions of Section 2-70.
3057	3057	17 (40) Beginning January 1, 2010 and continuing through
3058	3058	18 December 31, 2024, materials, parts, equipment,
3059	3059	19 components, and furnishings incorporated into or upon an
3060	3060	20 aircraft as part of the modification, refurbishment,
3061	3061	21 completion, replacement, repair, or maintenance of the
3062	3062	22 aircraft. This exemption includes consumable supplies used
3063	3063	23 in the modification, refurbishment, completion,
3064	3064	24 replacement, repair, and maintenance of aircraft, but
3065	3065	25 excludes any materials, parts, equipment, components, and
3066	3066	26 consumable supplies used in the modification, replacement,
3067	3067
3068	3068
3069	3069
3070	3070
3071	3071
3072	3072	SB1350 - 83 - LRB103 27798 HLH 54176 b
3073	3073
3074	3074
3075	3075	SB1350- 84 -LRB103 27798 HLH 54176 b SB1350 - 84 - LRB103 27798 HLH 54176 b
3076	3076	SB1350 - 84 - LRB103 27798 HLH 54176 b
3077	3077	1 repair, and maintenance of aircraft engines or power
3078	3078	2 plants, whether such engines or power plants are installed
3079	3079	3 or uninstalled upon any such aircraft. "Consumable
3080	3080	4 supplies" include, but are not limited to, adhesive, tape,
3081	3081	5 sandpaper, general purpose lubricants, cleaning solution,
3082	3082	6 latex gloves, and protective films. This exemption applies
3083	3083	7 only to the sale of qualifying tangible personal property
3084	3084	8 to persons who modify, refurbish, complete, replace, or
3085	3085	9 maintain an aircraft and who (i) hold an Air Agency
3086	3086	10 Certificate and are empowered to operate an approved
3087	3087	11 repair station by the Federal Aviation Administration,
3088	3088	12 (ii) have a Class IV Rating, and (iii) conduct operations
3089	3089	13 in accordance with Part 145 of the Federal Aviation
3090	3090	14 Regulations. The exemption does not include aircraft
3091	3091	15 operated by a commercial air carrier providing scheduled
3092	3092	16 passenger air service pursuant to authority issued under
3093	3093	17 Part 121 or Part 129 of the Federal Aviation Regulations.
3094	3094	18 The changes made to this paragraph (40) by Public Act
3095	3095	19 98-534 are declarative of existing law. It is the intent
3096	3096	20 of the General Assembly that the exemption under this
3097	3097	21 paragraph (40) applies continuously from January 1, 2010
3098	3098	22 through December 31, 2024; however, no claim for credit or
3099	3099	23 refund is allowed for taxes paid as a result of the
3100	3100	24 disallowance of this exemption on or after January 1, 2015
3101	3101	25 and prior to February 5, 2020 (the effective date of
3102	3102	26 Public Act 101-629) this amendatory Act of the 101st
3103	3103
3104	3104
3105	3105
3106	3106
3107	3107
3108	3108	SB1350 - 84 - LRB103 27798 HLH 54176 b
3109	3109
3110	3110
3111	3111	SB1350- 85 -LRB103 27798 HLH 54176 b SB1350 - 85 - LRB103 27798 HLH 54176 b
3112	3112	SB1350 - 85 - LRB103 27798 HLH 54176 b
3113	3113	1 General Assembly.
3114	3114	2 (41) Tangible personal property sold to a
3115	3115	3 public-facilities corporation, as described in Section
3116	3116	4 11-65-10 of the Illinois Municipal Code, for purposes of
3117	3117	5 constructing or furnishing a municipal convention hall,
3118	3118	6 but only if the legal title to the municipal convention
3119	3119	7 hall is transferred to the municipality without any
3120	3120	8 further consideration by or on behalf of the municipality
3121	3121	9 at the time of the completion of the municipal convention
3122	3122	10 hall or upon the retirement or redemption of any bonds or
3123	3123	11 other debt instruments issued by the public-facilities
3124	3124	12 corporation in connection with the development of the
3125	3125	13 municipal convention hall. This exemption includes
3126	3126	14 existing public-facilities corporations as provided in
3127	3127	15 Section 11-65-25 of the Illinois Municipal Code. This
3128	3128	16 paragraph is exempt from the provisions of Section 2-70.
3129	3129	17 (42) Beginning January 1, 2017 and through December
3130	3130	18 31, 2026, menstrual pads, tampons, and menstrual cups.
3131	3131	19 (43) Merchandise that is subject to the Rental
3132	3132	20 Purchase Agreement Occupation and Use Tax. The purchaser
3133	3133	21 must certify that the item is purchased to be rented
3134	3134	22 subject to a rental purchase agreement, as defined in the
3135	3135	23 Rental Purchase Agreement Act, and provide proof of
3136	3136	24 registration under the Rental Purchase Agreement
3137	3137	25 Occupation and Use Tax Act. This paragraph is exempt from
3138	3138	26 the provisions of Section 2-70.
3139	3139
3140	3140
3141	3141
3142	3142
3143	3143
3144	3144	SB1350 - 85 - LRB103 27798 HLH 54176 b
3145	3145
3146	3146
3147	3147	SB1350- 86 -LRB103 27798 HLH 54176 b SB1350 - 86 - LRB103 27798 HLH 54176 b
3148	3148	SB1350 - 86 - LRB103 27798 HLH 54176 b
3149	3149	1 (44) Qualified tangible personal property used in the
3150	3150	2 construction or operation of a data center that has been
3151	3151	3 granted a certificate of exemption by the Department of
3152	3152	4 Commerce and Economic Opportunity, whether that tangible
3153	3153	5 personal property is purchased by the owner, operator, or
3154	3154	6 tenant of the data center or by a contractor or
3155	3155	7 subcontractor of the owner, operator, or tenant. Data
3156	3156	8 centers that would have qualified for a certificate of
3157	3157	9 exemption prior to January 1, 2020 had Public Act 101-31
3158	3158	10 this amendatory Act of the 101st General Assembly been in
3159	3159	11 effect, may apply for and obtain an exemption for
3160	3160	12 subsequent purchases of computer equipment or enabling
3161	3161	13 software purchased or leased to upgrade, supplement, or
3162	3162	14 replace computer equipment or enabling software purchased
3163	3163	15 or leased in the original investment that would have
3164	3164	16 qualified.
3165	3165	17 The Department of Commerce and Economic Opportunity
3166	3166	18 shall grant a certificate of exemption under this item
3167	3167	19 (44) to qualified data centers as defined by Section
3168	3168	20 605-1025 of the Department of Commerce and Economic
3169	3169	21 Opportunity Law of the Civil Administrative Code of
3170	3170	22 Illinois.
3171	3171	23 For the purposes of this item (44):
3172	3172	24 "Data center" means a building or a series of
3173	3173	25 buildings rehabilitated or constructed to house
3174	3174	26 working servers in one physical location or multiple
3175	3175
3176	3176
3177	3177
3178	3178
3179	3179
3180	3180	SB1350 - 86 - LRB103 27798 HLH 54176 b
3181	3181
3182	3182
3183	3183	SB1350- 87 -LRB103 27798 HLH 54176 b SB1350 - 87 - LRB103 27798 HLH 54176 b
3184	3184	SB1350 - 87 - LRB103 27798 HLH 54176 b
3185	3185	1 sites within the State of Illinois.
3186	3186	2 "Qualified tangible personal property" means:
3187	3187	3 electrical systems and equipment; climate control and
3188	3188	4 chilling equipment and systems; mechanical systems and
3189	3189	5 equipment; monitoring and secure systems; emergency
3190	3190	6 generators; hardware; computers; servers; data storage
3191	3191	7 devices; network connectivity equipment; racks;
3192	3192	8 cabinets; telecommunications cabling infrastructure;
3193	3193	9 raised floor systems; peripheral components or
3194	3194	10 systems; software; mechanical, electrical, or plumbing
3195	3195	11 systems; battery systems; cooling systems and towers;
3196	3196	12 temperature control systems; other cabling; and other
3197	3197	13 data center infrastructure equipment and systems
3198	3198	14 necessary to operate qualified tangible personal
3199	3199	15 property, including fixtures; and component parts of
3200	3200	16 any of the foregoing, including installation,
3201	3201	17 maintenance, repair, refurbishment, and replacement of
3202	3202	18 qualified tangible personal property to generate,
3203	3203	19 transform, transmit, distribute, or manage electricity
3204	3204	20 necessary to operate qualified tangible personal
3205	3205	21 property; and all other tangible personal property
3206	3206	22 that is essential to the operations of a computer data
3207	3207	23 center. The term "qualified tangible personal
3208	3208	24 property" also includes building materials physically
3209	3209	25 incorporated into the qualifying data center. To
3210	3210	26 document the exemption allowed under this Section, the
3211	3211
3212	3212
3213	3213
3214	3214
3215	3215
3216	3216	SB1350 - 87 - LRB103 27798 HLH 54176 b
3217	3217
3218	3218
3219	3219	SB1350- 88 -LRB103 27798 HLH 54176 b SB1350 - 88 - LRB103 27798 HLH 54176 b
3220	3220	SB1350 - 88 - LRB103 27798 HLH 54176 b
3221	3221	1 retailer must obtain from the purchaser a copy of the
3222	3222	2 certificate of eligibility issued by the Department of
3223	3223	3 Commerce and Economic Opportunity.
3224	3224	4 This item (44) is exempt from the provisions of
3225	3225	5 Section 2-70.
3226	3226	6 (45) Beginning January 1, 2020 and through December
3227	3227	7 31, 2020, sales of tangible personal property made by a
3228	3228	8 marketplace seller over a marketplace for which tax is due
3229	3229	9 under this Act but for which use tax has been collected and
3230	3230	10 remitted to the Department by a marketplace facilitator
3231	3231	11 under Section 2d of the Use Tax Act are exempt from tax
3232	3232	12 under this Act. A marketplace seller claiming this
3233	3233	13 exemption shall maintain books and records demonstrating
3234	3234	14 that the use tax on such sales has been collected and
3235	3235	15 remitted by a marketplace facilitator. Marketplace sellers
3236	3236	16 that have properly remitted tax under this Act on such
3237	3237	17 sales may file a claim for credit as provided in Section 6
3238	3238	18 of this Act. No claim is allowed, however, for such taxes
3239	3239	19 for which a credit or refund has been issued to the
3240	3240	20 marketplace facilitator under the Use Tax Act, or for
3241	3241	21 which the marketplace facilitator has filed a claim for
3242	3242	22 credit or refund under the Use Tax Act.
3243	3243	23 (46) Beginning July 1, 2022, breast pumps, breast pump
3244	3244	24 collection and storage supplies, and breast pump kits.
3245	3245	25 This item (46) is exempt from the provisions of Section
3246	3246	26 2-70. As used in this item (46):
3247	3247
3248	3248
3249	3249
3250	3250
3251	3251
3252	3252	SB1350 - 88 - LRB103 27798 HLH 54176 b
3253	3253
3254	3254
3255	3255	SB1350- 89 -LRB103 27798 HLH 54176 b SB1350 - 89 - LRB103 27798 HLH 54176 b
3256	3256	SB1350 - 89 - LRB103 27798 HLH 54176 b
3257	3257	1 "Breast pump" means an electrically controlled or
3258	3258	2 manually controlled pump device designed or marketed to be
3259	3259	3 used to express milk from a human breast during lactation,
3260	3260	4 including the pump device and any battery, AC adapter, or
3261	3261	5 other power supply unit that is used to power the pump
3262	3262	6 device and is packaged and sold with the pump device at the
3263	3263	7 time of sale.
3264	3264	8 "Breast pump collection and storage supplies" means
3265	3265	9 items of tangible personal property designed or marketed
3266	3266	10 to be used in conjunction with a breast pump to collect
3267	3267	11 milk expressed from a human breast and to store collected
3268	3268	12 milk until it is ready for consumption.
3269	3269	13 "Breast pump collection and storage supplies"
3270	3270	14 includes, but is not limited to: breast shields and breast
3271	3271	15 shield connectors; breast pump tubes and tubing adapters;
3272	3272	16 breast pump valves and membranes; backflow protectors and
3273	3273	17 backflow protector adaptors; bottles and bottle caps
3274	3274	18 specific to the operation of the breast pump; and breast
3275	3275	19 milk storage bags.
3276	3276	20 "Breast pump collection and storage supplies" does not
3277	3277	21 include: (1) bottles and bottle caps not specific to the
3278	3278	22 operation of the breast pump; (2) breast pump travel bags
3279	3279	23 and other similar carrying accessories, including ice
3280	3280	24 packs, labels, and other similar products; (3) breast pump
3281	3281	25 cleaning supplies; (4) nursing bras, bra pads, breast
3282	3282	26 shells, and other similar products; and (5) creams,
3283	3283
3284	3284
3285	3285
3286	3286
3287	3287
3288	3288	SB1350 - 89 - LRB103 27798 HLH 54176 b
3289	3289
3290	3290
3291	3291	SB1350- 90 -LRB103 27798 HLH 54176 b SB1350 - 90 - LRB103 27798 HLH 54176 b
3292	3292	SB1350 - 90 - LRB103 27798 HLH 54176 b
3293	3293	1 ointments, and other similar products that relieve
3294	3294	2 breastfeeding-related symptoms or conditions of the
3295	3295	3 breasts or nipples, unless sold as part of a breast pump
3296	3296	4 kit that is pre-packaged by the breast pump manufacturer
3297	3297	5 or distributor.
3298	3298	6 "Breast pump kit" means a kit that: (1) contains no
3299	3299	7 more than a breast pump, breast pump collection and
3300	3300	8 storage supplies, a rechargeable battery for operating the
3301	3301	9 breast pump, a breastmilk cooler, bottle stands, ice
3302	3302	10 packs, and a breast pump carrying case; and (2) is
3303	3303	11 pre-packaged as a breast pump kit by the breast pump
3304	3304	12 manufacturer or distributor.
3305	3305	13 (47) (46) Tangible personal property sold by or on
3306	3306	14 behalf of the State Treasurer pursuant to the Revised
3307	3307	15 Uniform Unclaimed Property Act. This item (47) (46) is
3308	3308	16 exempt from the provisions of Section 2-70.
3309	3309	17 (48) Qualified tangible personal property used in the
3310	3310	18 construction or operation of a Mega Project for which a
3311	3311	19 certificate has been issued by the Department of Revenue
3312	3312	20 as described and defined in Division 22 of Article 10 of
3313	3313	21 the Property Tax Code, whether that tangible personal
3314	3314	22 property is purchased by the owner, operator, or tenant of
3315	3315	23 the mega project or by a contractor or subcontractor of
3316	3316	24 the owner, operator, or tenant. For the purposes of this
3317	3317	25 item (48):
3318	3318	26 "Facility" means a building or series of buildings.
3319	3319
3320	3320
3321	3321
3322	3322
3323	3323
3324	3324	SB1350 - 90 - LRB103 27798 HLH 54176 b
3325	3325
3326	3326
3327	3327	SB1350- 91 -LRB103 27798 HLH 54176 b SB1350 - 91 - LRB103 27798 HLH 54176 b
3328	3328	SB1350 - 91 - LRB103 27798 HLH 54176 b
3329	3329	1 "Mega project" means a facility that is rehabilitated
3330	3330	2 or constructed as described in Division 22 of Article 10
3331	3331	3 of the Property Tax Code.
3332	3332	4 "Qualified tangible personal property" means:
3333	3333	5 electrical systems and equipment; climate control and
3334	3334	6 chilling equipment and systems; mechanical systems and
3335	3335	7 equipment; monitoring and secure systems; emergency
3336	3336	8 generators; hardware; computers; servers; data storage
3337	3337	9 devices; network connectivity equipment; racks; cabinets;
3338	3338	10 telecommunications cabling infrastructure; raised floor
3339	3339	11 systems; peripheral components or systems; software;
3340	3340	12 mechanical, electrical, or plumbing systems; battery
3341	3341	13 systems; cooling systems and towers; temperature control
3342	3342	14 systems; other cabling; and other data center
3343	3343	15 infrastructure equipment and systems necessary to operate
3344	3344	16 qualified tangible personal property, including fixtures;
3345	3345	17 and component parts of any of the foregoing, including
3346	3346	18 installation, maintenance, repair, refurbishment, and
3347	3347	19 replacement of qualified tangible personal property to
3348	3348	20 generate, transform, transmit, distribute, or manage
3349	3349	21 electricity necessary to operate qualified tangible
3350	3350	22 personal property; and all other tangible personal
3351	3351	23 property that is essential to the operations of a mega
3352	3352	24 project. The term "qualified tangible personal property"
3353	3353	25 also includes building materials to be incorporated into
3354	3354	26 the mega project. To document the exemption allowed under
3355	3355
3356	3356
3357	3357
3358	3358
3359	3359
3360	3360	SB1350 - 91 - LRB103 27798 HLH 54176 b
3361	3361
3362	3362
3363	3363	SB1350- 92 -LRB103 27798 HLH 54176 b SB1350 - 92 - LRB103 27798 HLH 54176 b
3364	3364	SB1350 - 92 - LRB103 27798 HLH 54176 b
3365	3365	1 this Section, the retailer, contractor or subcontractor or
3366	3366	2 supplier must obtain from the purchaser a copy of the
3367	3367	3 certificate issued by the Department of Revenue for the
3368	3368	4 mega project as described and defined in Division 22 of
3369	3369	5 Article 10 of the Property Tax Code.
3370	3370	6 This item (48) is exempt from the provisions of
3371	3371	7 Section 2-70.
3372	3372	8 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
3373	3373	9 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
3374	3374	10 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
3375	3375	11 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
3376	3376	12 eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
3377	3377	13 Section 25. The Property Tax Code is amended by adding
3378	3378	14 Division 22 to Article 10 as follows:
3379	3379	15 (35 ILCS 200/Art. 10 Div. 22 heading new)
3380	3380	16 Division 22. Mega projects
3381	3381	17 (35 ILCS 200/10-900 new)
3382	3382	18 Sec. 10-900. Findings. The State's economy is highly
3383	3383	19 vulnerable to other states that have major financial incentive
3384	3384	20 programs and competitive tax incentives. Certain businesses
3385	3385	21 and commercial operations that generate significant economic
3386	3386	22 activity bear a disproportionately high property tax burden
3387	3387	23 compared to their impact on government services and compared
3388	3388
3389	3389
3390	3390
3391	3391
3392	3392
3393	3393	SB1350 - 92 - LRB103 27798 HLH 54176 b
3394	3394
3395	3395
3396	3396	SB1350- 93 -LRB103 27798 HLH 54176 b SB1350 - 93 - LRB103 27798 HLH 54176 b
3397	3397	SB1350 - 93 - LRB103 27798 HLH 54176 b
3398	3398	1 to their positive economic benefits to the State and the local
3399	3399	2 economy and their derivative benefits to taxing districts. To
3400	3400	3 incentivize the significant capital investment and economic
3401	3401	4 activity of certain large-scale businesses and industrial and
3402	3402	5 commercial operations, the State finds that a valuation
3403	3403	6 procedure for real property taxes on special properties, known
3404	3404	7 as mega projects, will reduce barriers to investment and
3405	3405	8 economic activity in Illinois. The General Assembly finds that
3406	3406	9 it is in the best interest of Illinois to establish a new
3407	3407	10 category of valuation for mega projects that recognizes their
3408	3408	11 complexity and encourages local development at underutilized
3409	3409	12 properties.
3410	3410	13 (35 ILCS 200/10-910 new)
3411	3411	14 Sec. 10-910. Mega Project Assessment Freeze and Payment
3412	3412	15 Law; definitions. This Division 22 may be cited as the Mega
3413	3413	16 Project Assessment Freeze and Payment Law.
3414	3414	17 As used in this Division:
3415	3415	18 "Assessment officer" means the chief county assessment
3416	3416	19 officer of the county in which the mega project is located.
3417	3417	20 "Assessment period" means the period beginning on the
3418	3418	21 first day of the calendar year after the calendar year in which
3419	3419	22 a mega project is placed in service and ending on the date when
3420	3420	23 the mega project no longer qualifies as a mega project under
3421	3421	24 this Division.
3422	3422	25 "Base tax year" means the tax year prior to the first
3423	3423
3424	3424
3425	3425
3426	3426
3427	3427
3428	3428	SB1350 - 93 - LRB103 27798 HLH 54176 b
3429	3429
3430	3430
3431	3431	SB1350- 94 -LRB103 27798 HLH 54176 b SB1350 - 94 - LRB103 27798 HLH 54176 b
3432	3432	SB1350 - 94 - LRB103 27798 HLH 54176 b
3433	3433	1 calendar year during which the Department issues a mega
3434	3434	2 project certificate under this Division.
3435	3435	3 "Base year" means:
3436	3436	4 (1) the calendar year prior to the calendar year in
3437	3437	5 which the Department issues the mega project certificate,
3438	3438	6 if the Department issues a mega project certificate for a
3439	3439	7 project located on the property without granting
3440	3440	8 preliminary approval for the project pursuant to Section
3441	3441	9 10-940; or
3442	3442	10 (2) the calendar year prior to the calendar year in
3443	3443	11 which the Department grants that preliminary approval, if
3444	3444	12 the Department grants preliminary approval pursuant to
3445	3445	13 Section 10-940 for a mega project located on the property.
3446	3446	14 "Base year valuation" means the assessed value, in the
3447	3447	15 base year, of the property comprising the mega project.
3448	3448	16 "Company" means one or more entities whose aggregate
3449	3449	17 investment in the mega project meets the minimum investment
3450	3450	18 required under this Division. The term company shall include a
3451	3451	19 company affiliate unless the context clearly indicates
3452	3452	20 otherwise.
3453	3453	21 "Company affiliate" means an entity that joins with or is
3454	3454	22 an affiliate of a company and that participates in the
3455	3455	23 investment in, or financing of, a mega project.
3456	3456	24 "Department" means the Department of Revenue.
3457	3457	25 "Eligible costs" means all costs incurred by or on behalf
3458	3458	26 of, or allocated to, a company, prior to the Department's
3459	3459
3460	3460
3461	3461
3462	3462
3463	3463
3464	3464	SB1350 - 94 - LRB103 27798 HLH 54176 b
3465	3465
3466	3466
3467	3467	SB1350- 95 -LRB103 27798 HLH 54176 b SB1350 - 95 - LRB103 27798 HLH 54176 b
3468	3468	SB1350 - 95 - LRB103 27798 HLH 54176 b
3469	3469	1 issuance of the mega project certificate or during the
3470	3470	2 investment period, to create or construct a mega project.
3471	3471	3 "Eligible costs" includes, without limitation:
3472	3472	4 (1) the purchase, site preparation, renovation,
3473	3473	5 rehabilitation and construction of land, buildings,
3474	3474	6 structures, equipment and furnishings used for or in the
3475	3475	7 mega project;
3476	3476	8 (2) any goods or services for the mega project that
3477	3477	9 are purchased and capitalized under generally accepted
3478	3478	10 accounting principles, including any organizational costs
3479	3479	11 and research and development costs incurred in Illinois;
3480	3480	12 (3) capitalized lease costs for land, buildings,
3481	3481	13 structures and equipment valued at their present value
3482	3482	14 using the interest rate at which the company borrows funds
3483	3483	15 prevailing at the time the company entered into the lease;
3484	3484	16 (4) infrastructure development costs;
3485	3485	17 (5) debt service and project financing costs;
3486	3486	18 (6) non-capitalized research and development costs;
3487	3487	19 (7) job training and education costs;
3488	3488	20 (8) lease and relocation costs; and
3489	3489	21 (9) amounts expended by a company or company affiliate
3490	3490	22 as a non-responsible party pursuant to a voluntary program
3491	3491	23 of site remediation, including amounts expended to obtain
3492	3492	24 a certification of completion, if completion of
3493	3493	25 remediation is certified by the Illinois Environmental
3494	3494	26 Protection Agency.
3495	3495
3496	3496
3497	3497
3498	3498
3499	3499
3500	3500	SB1350 - 95 - LRB103 27798 HLH 54176 b
3501	3501
3502	3502
3503	3503	SB1350- 96 -LRB103 27798 HLH 54176 b SB1350 - 96 - LRB103 27798 HLH 54176 b
3504	3504	SB1350 - 96 - LRB103 27798 HLH 54176 b
3505	3505	1 "Entity" means a sole proprietor, partnership, firm,
3506	3506	2 corporation, limited liability company, association, or other
3507	3507	3 business enterprise.
3508	3508	4 "Incentive agreement" means an agreement between a company
3509	3509	5 and a local municipality obligating the company to make the
3510	3510	6 special payment under this Division, in addition to paying
3511	3511	7 property taxes, during the incentive period for a mega
3512	3512	8 project.
3513	3513	9 "Incentive period" means the period beginning on the first
3514	3514	10 day of the calendar year after the calendar year in which the
3515	3515	11 mega project is placed in service and each calendar year
3516	3516	12 thereafter until the earlier of (i) the expiration or
3517	3517	13 termination of the incentive agreement or (ii) the revocation
3518	3518	14 of the mega project certificate.
3519	3519	15 "Inducement resolution" means a resolution adopted by the
3520	3520	16 local municipality setting forth the commitment of the local
3521	3521	17 municipality to enter into an incentive agreement.
3522	3522	18 "Investment period" means the period ending 7 years after
3523	3523	19 the date on which the Department issues the mega project
3524	3524	20 certificate, or such other longer period of time as the local
3525	3525	21 municipality and the company may agree to, not to exceed an
3526	3526	22 initial period of 10 years.
3527	3527	23 "Local municipality" means the city, village, or
3528	3528	24 incorporated town in which the mega project is located or, if
3529	3529	25 the mega project is located in an unincorporated area, the
3530	3530	26 county in which the mega project is located.
3531	3531
3532	3532
3533	3533
3534	3534
3535	3535
3536	3536	SB1350 - 96 - LRB103 27798 HLH 54176 b
3537	3537
3538	3538
3539	3539	SB1350- 97 -LRB103 27798 HLH 54176 b SB1350 - 97 - LRB103 27798 HLH 54176 b
3540	3540	SB1350 - 97 - LRB103 27798 HLH 54176 b
3541	3541	1 "Mega project" means a project that satisfies the minimum
3542	3542	2 investment, investment period, and other requirements of this
3543	3543	3 Division.
3544	3544	4 "Mega project certificate" means a certificate issued by
3545	3545	5 the Department that authorizes an assessment freeze as
3546	3546	6 provided in this Division.
3547	3547	7 "Minimum investment" means an investment in the mega
3548	3548	8 project of at least $500,000,000 in eligible costs within the
3549	3549	9 investment period.
3550	3550	10 "Minority person" means a person who is a citizen or
3551	3551	11 lawful permanent resident of the United States and who is any
3552	3552	12 of the following:
3553	3553	13 (1) American Indian or Alaska Native (a person having
3554	3554	14 origins in any of the original peoples of North and South
3555	3555	15 America, including Central America, and who maintains
3556	3556	16 tribal affiliation or community attachment).
3557	3557	17 (2) Asian (a person having origins in any of the
3558	3558	18 original peoples of the Far East, Southeast Asia, or the
3559	3559	19 Indian subcontinent, including, but not limited to,
3560	3560	20 Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
3561	3561	21 the Philippine Islands, Thailand, and Vietnam).
3562	3562	22 (3) Black or African American (a person having origins
3563	3563	23 in any of the black racial groups of Africa).
3564	3564	24 (4) Hispanic or Latino (a person of Cuban, Mexican,
3565	3565	25 Puerto Rican, South or Central American, or other Spanish
3566	3566	26 culture or origin, regardless of race).
3567	3567
3568	3568
3569	3569
3570	3570
3571	3571
3572	3572	SB1350 - 97 - LRB103 27798 HLH 54176 b
3573	3573
3574	3574
3575	3575	SB1350- 98 -LRB103 27798 HLH 54176 b SB1350 - 98 - LRB103 27798 HLH 54176 b
3576	3576	SB1350 - 98 - LRB103 27798 HLH 54176 b
3577	3577	1 (5) Native Hawaiian or Other Pacific Islander (a
3578	3578	2 person having origins in any of the original peoples of
3579	3579	3 Hawaii, Guam, Samoa, or other Pacific Islands).
3580	3580	4 "Minority-owned business" means a business that is at
3581	3581	5 least 51% owned by one or more minority persons, or in the case
3582	3582	6 of a corporation, at least 51% of the stock in which is owned
3583	3583	7 by one or more minority persons; and the management and daily
3584	3584	8 business operations of which are controlled by one or more of
3585	3585	9 the minority individuals who own it.
3586	3586	10 "Placed in service" means that construction of the mega
3587	3587	11 project is substantially complete, which may be evidenced by
3588	3588	12 issuance of a certificate of occupancy for the mega project by
3589	3589	13 the local municipality or any other governmental body having
3590	3590	14 jurisdiction over construction of the mega project or, if no
3591	3591	15 certificate of occupancy is required as to the mega project,
3592	3592	16 commencement of operations at the mega project site.
3593	3593	17 "Project" means land, buildings, and other improvements on
3594	3594	18 the land, including water, sewage treatment and disposal
3595	3595	19 facilities, air pollution control facilities, and all other
3596	3596	20 machinery, apparatus, equipment, office facilities, related
3597	3597	21 infrastructure, and furnishings which are considered
3598	3598	22 necessary, suitable, or useful by a company and comprise the
3599	3599	23 mega project, including all such property subject to
3600	3600	24 assessment under the Property Tax Code.
3601	3601	25 "Special payment" means the annual amount paid in addition
3602	3602	26 to property taxes paid during the incentive period as provided
3603	3603
3604	3604
3605	3605
3606	3606
3607	3607
3608	3608	SB1350 - 98 - LRB103 27798 HLH 54176 b
3609	3609
3610	3610
3611	3611	SB1350- 99 -LRB103 27798 HLH 54176 b SB1350 - 99 - LRB103 27798 HLH 54176 b
3612	3612	SB1350 - 99 - LRB103 27798 HLH 54176 b
3613	3613	1 in the incentive agreement.
3614	3614	2 "Taxing district" has the meaning set forth in Section
3615	3615	3 1-150.
3616	3616	4 "Termination date" means the last day of a calendar year
3617	3617	5 that is no later than the 23rd year following the first
3618	3618	6 calendar year in which a mega project is placed in service. A
3619	3619	7 company may apply to the local municipality prior to the
3620	3620	8 termination date for an extension of the termination date
3621	3621	9 beyond the 23rd year for up to 17 additional years, for a total
3622	3622	10 of 40 years. The corporate authorities of the local
3623	3623	11 municipality shall approve an extension by resolution upon a
3624	3624	12 finding of substantial public benefit. A copy of the
3625	3625	13 resolution must be delivered to the Department within 30 days
3626	3626	14 of the date the resolution was adopted. If the incentive
3627	3627	15 agreement is terminated under Section 10-937, then the
3628	3628	16 termination date is the date the agreement is terminated.
3629	3629	17 (35 ILCS 200/10-915 new)
3630	3630	18 Sec. 10-915. Valuation during incentive period;
3631	3631	19 eligibility.
3632	3632	20 (a) Property certified by the Department as mega project
3633	3633	21 property pursuant to this Division is eligible for an
3634	3634	22 assessment freeze, as provided in this Division, eliminating
3635	3635	23 from consideration, for assessment purposes during the
3636	3636	24 incentive period, the value added to the property by the
3637	3637	25 project and limiting the total valuation of the property
3638	3638
3639	3639
3640	3640
3641	3641
3642	3642
3643	3643	SB1350 - 99 - LRB103 27798 HLH 54176 b
3644	3644
3645	3645
3646	3646	SB1350- 100 -LRB103 27798 HLH 54176 b SB1350 - 100 - LRB103 27798 HLH 54176 b
3647	3647	SB1350 - 100 - LRB103 27798 HLH 54176 b
3648	3648	1 during the incentive period to the base year valuation. If the
3649	3649	2 company does not anticipate completing the project within the
3650	3650	3 investment period, then the local municipality may approve one
3651	3651	4 or more extensions of time to complete the project. However,
3652	3652	5 the local municipality may not extend the project for a period
3653	3653	6 that exceeds 5 years after the last day of the investment
3654	3654	7 period. Unless approved as part of the original incentive
3655	3655	8 agreement, the corporate authorities may approve an extension
3656	3656	9 under this subsection by resolution, a copy of which must be
3657	3657	10 delivered to the Department within 30 days after the date the
3658	3658	11 resolution is adopted.
3659	3659	12 (b) To qualify for a mega project certificate, the company
3660	3660	13 must:
3661	3661	14 (1) make the minimum investment in the mega project
3662	3662	15 during the investment period; minimum investment
3663	3663	16 requirements shall be construed broadly for purposes of
3664	3664	17 this Division;
3665	3665	18 (2) enter into an incentive agreement with the local
3666	3666	19 municipality as described in this Division;
3667	3667	20 (3) enter into a project labor agreement with the
3668	3668	21 applicable local building trades council prior to the
3669	3669	22 commencement of any demolition, building construction, or
3670	3670	23 building renovation related to the project; and
3671	3671	24 (4) establish the goal of awarding 20% of the total
3672	3672	25 dollar amount of contracts that are related to the project
3673	3673	26 and are awarded by the company during each calendar year
3674	3674
3675	3675
3676	3676
3677	3677
3678	3678
3679	3679	SB1350 - 100 - LRB103 27798 HLH 54176 b
3680	3680
3681	3681
3682	3682	SB1350- 101 -LRB103 27798 HLH 54176 b SB1350 - 101 - LRB103 27798 HLH 54176 b
3683	3683	SB1350 - 101 - LRB103 27798 HLH 54176 b
3684	3684	1 to minority-owned businesses.
3685	3685	2 (c) For purposes of this Division, if a single company
3686	3686	3 enters into a financing arrangement of the type described in
3687	3687	4 subsection (b) of Section 10-950, the investment in or
3688	3688	5 financing of the property by a developer, lessor, financing
3689	3689	6 entity, or other third party in accordance with this
3690	3690	7 arrangement is considered investment by the company.
3691	3691	8 Investment by a related person to the company is considered
3692	3692	9 investment by the company.
3693	3693	10 (35 ILCS 200/10-920 new)
3694	3694	11 Sec. 10-920. Incentive agreement; assessment freeze for
3695	3695	12 mega projects; incentive period; inducement resolution;
3696	3696	13 location of the project; criteria to qualify.
3697	3697	14 (a) To obtain the benefits provided in this Division, the
3698	3698	15 company shall apply in writing to the local municipality to
3699	3699	16 enter into an incentive agreement with the municipality, in
3700	3700	17 the form and manner required by the local municipality, and
3701	3701	18 shall certify to the facts asserted in the application.
3702	3702	19 (b) The corporate authorities of the local municipality,
3703	3703	20 prior to entering into an incentive agreement under this
3704	3704	21 Section, shall hold a public hearing to consider the
3705	3705	22 application. The amount and terms of the proposed special
3706	3706	23 payment and the duration of the incentive agreement shall be
3707	3707	24 considered at the public hearing.
3708	3708	25 (c) Copies of the completed application shall be provided
3709	3709
3710	3710
3711	3711
3712	3712
3713	3713
3714	3714	SB1350 - 101 - LRB103 27798 HLH 54176 b
3715	3715
3716	3716
3717	3717	SB1350- 102 -LRB103 27798 HLH 54176 b SB1350 - 102 - LRB103 27798 HLH 54176 b
3718	3718	SB1350 - 102 - LRB103 27798 HLH 54176 b
3719	3719	1 to each taxing district for which property taxes were assessed
3720	3720	2 on the property for the immediately preceding tax year. Those
3721	3721	3 copies shall be provided at least 30 days prior to the
3722	3722	4 scheduled public hearing at which the corporate authorities of
3723	3723	5 the local municipality will consider the application.
3724	3724	6 (d) The company and the local municipality shall enter
3725	3725	7 into an incentive agreement requiring the special payment
3726	3726	8 described in Section 10-925. The corporate authorities of the
3727	3727	9 local municipality shall adopt an ordinance approving the
3728	3728	10 incentive agreement.
3729	3729	11 (e) If an incentive agreement is not executed within 5
3730	3730	12 years after the local municipality's adoption of an inducement
3731	3731	13 resolution, expenditures incurred by the company more than 5
3732	3732	14 years prior to the execution of the incentive agreement shall
3733	3733	15 not qualify as part of the minimum investment.
3734	3734	16 (f) To be eligible to enter into an incentive agreement
3735	3735	17 under this Division, the company must commit to a project that
3736	3736	18 meets the minimum investment set forth in this Division.
3737	3737	19 (35 ILCS 200/10-925 new)
3738	3738	20 Sec. 10-925. Contents of incentive agreement.
3739	3739	21 (a) The incentive agreement under Section 10-920 must
3740	3740	22 require the company to pay, or be responsible for the payment
3741	3741	23 of, an annual special payment to the local municipality,
3742	3742	24 beginning with the first tax year for which the assessment
3743	3743	25 freeze under this Division is applied to the mega project. The
3744	3744
3745	3745
3746	3746
3747	3747
3748	3748
3749	3749	SB1350 - 102 - LRB103 27798 HLH 54176 b
3750	3750
3751	3751
3752	3752	SB1350- 103 -LRB103 27798 HLH 54176 b SB1350 - 103 - LRB103 27798 HLH 54176 b
3753	3753	SB1350 - 103 - LRB103 27798 HLH 54176 b
3754	3754	1 amount of the special payment shall be established by the
3755	3755	2 local municipality in the incentive agreement and may be a
3756	3756	3 fixed amount for the duration of the incentive period or may be
3757	3757	4 subject to adjustment (downward or upward) based on factors
3758	3758	5 memorialized in the incentive agreement.
3759	3759	6 (b) The incentive agreement shall obligate the company to
3760	3760	7 operate the mega project at the designated project location
3761	3761	8 for a minimum of 20 years.
3762	3762	9 (c) The incentive agreement may contain such other terms
3763	3763	10 and conditions as are mutually agreeable to the local
3764	3764	11 municipality and the company and are consistent with the
3765	3765	12 requirements of this Division, including, without limitation,
3766	3766	13 operational and job creation requirements.
3767	3767	14 (d) In addition, all incentive agreements entered into
3768	3768	15 pursuant to Section 10-920 must include, as the first portion
3769	3769	16 of the document, a recapitulation of the remaining contents of
3770	3770	17 the document which includes, but is not limited to, the
3771	3771	18 following:
3772	3772	19 (1) the legal name of each party to the agreement;
3773	3773	20 (2) the street address of the project and the property
3774	3774	21 subject to the agreement;
3775	3775	22 (3) the agreed minimum investment;
3776	3776	23 (4) the term of the agreement;
3777	3777	24 (5) a schedule showing the amount of the special
3778	3778	25 payment and its calculation for each year of the
3779	3779	26 agreement;
3780	3780
3781	3781
3782	3782
3783	3783
3784	3784
3785	3785	SB1350 - 103 - LRB103 27798 HLH 54176 b
3786	3786
3787	3787
3788	3788	SB1350- 104 -LRB103 27798 HLH 54176 b SB1350 - 104 - LRB103 27798 HLH 54176 b
3789	3789	SB1350 - 104 - LRB103 27798 HLH 54176 b
3790	3790	1 (6) a schedule showing the amount to be distributed
3791	3791	2 annually to each affected taxing district, which amount
3792	3792	3 shall be a percentage of the special payment equal to the
3793	3793	4 taxing district's proportionate share of property taxes
3794	3794	5 due and payable for the base tax year;
3795	3795	6 (7) any other feature or aspect of the agreement which
3796	3796	7 may affect the calculation of items (5) and (6) of this
3797	3797	8 subsection; and
3798	3798	9 (8) the party or parties to the agreement who are
3799	3799	10 responsible for updating the information contained in the
3800	3800	11 summary document.
3801	3801	12 (35 ILCS 200/10-930 new)
3802	3802	13 Sec. 10-930. Installment bills; distribution of special
3803	3803	14 payments.
3804	3804	15 (a) The local municipality shall prepare a bill for each
3805	3805	16 installment of the special payment according to the schedule
3806	3806	17 set forth in paragraph (5) of subsection (d) of Section
3807	3807	18 10-925, or as modified pursuant to paragraph (7) of subsection
3808	3808	19 (d) of Section 10-925, and that payment must be distributed to
3809	3809	20 the affected taxing entities according to the schedule in
3810	3810	21 paragraph (6) of subsection (d) of Section 10-925 or as
3811	3811	22 modified in paragraph (7) of subsection (d) of Section 10-925.
3812	3812	23 (b) Distribution to taxing districts of the special
3813	3813	24 payments associated with a mega project must be made within 30
3814	3814	25 days after receipt by the local municipality of the special
3815	3815
3816	3816
3817	3817
3818	3818
3819	3819
3820	3820	SB1350 - 104 - LRB103 27798 HLH 54176 b
3821	3821
3822	3822
3823	3823	SB1350- 105 -LRB103 27798 HLH 54176 b SB1350 - 105 - LRB103 27798 HLH 54176 b
3824	3824	SB1350 - 105 - LRB103 27798 HLH 54176 b
3825	3825	1 payment amounts.
3826	3826	2 (c) Misallocations of the distribution of the special
3827	3827	3 payments may be corrected by adjusting later distributions,
3828	3828	4 but these adjustments must be made in the next succeeding year
3829	3829	5 following identification and resolution of the misallocation.
3830	3830	6 To the extent that distributions have been made improperly in
3831	3831	7 previous years, claims for adjustment must be made within one
3832	3832	8 year of the distribution.
3833	3833	9 (35 ILCS 200/10-935 new)
3834	3834	10 Sec. 10-935. Use of revenues. A taxing district that
3835	3835	11 receives and retains revenues from a special payment under
3836	3836	12 this Division may use all or a portion of the revenues for the
3837	3837	13 purposes of financing the issuance of revenue bonds.
3838	3838	14 (35 ILCS 200/10-937 new)
3839	3839	15 Sec. 10-937. Termination of incentive agreement; automatic
3840	3840	16 termination; minimum level of investment required to remain
3841	3841	17 qualified for assessment freeze.
3842	3842	18 (a) The local municipality and the company may mutually
3843	3843	19 agree to terminate the incentive agreement at any time. From
3844	3844	20 the date of termination, the mega project is subject to
3845	3845	21 assessment on the basis of the then current fair cash value.
3846	3846	22 (b) An incentive agreement shall be terminated if the
3847	3847	23 company fails to satisfy the minimum investment level provided
3848	3848	24 in this Division. If the incentive agreement is terminated
3849	3849
3850	3850
3851	3851
3852	3852
3853	3853
3854	3854	SB1350 - 105 - LRB103 27798 HLH 54176 b
3855	3855
3856	3856
3857	3857	SB1350- 106 -LRB103 27798 HLH 54176 b SB1350 - 106 - LRB103 27798 HLH 54176 b
3858	3858	SB1350 - 106 - LRB103 27798 HLH 54176 b
3859	3859	1 under this subsection, the mega project is subject to
3860	3860	2 assessment on the basis of the then current fair cash value
3861	3861	3 beginning in the tax year during which the termination occurs.
3862	3862	4 (c) An incentive agreement shall terminate if, at any
3863	3863	5 time, the company no longer has the minimum level of
3864	3864	6 investment as provided in this Division, without regard to
3865	3865	7 depreciation.
3866	3866	8 (35 ILCS 200/10-940 new)
3867	3867	9 Sec. 10-940. Mega project applications; certification as a
3868	3868	10 mega project and revocation of certification.
3869	3869	11 (a) The Department shall receive applications for mega
3870	3870	12 project certificates under this Division in a form and manner
3871	3871	13 provided by the Department by rule. The Department shall
3872	3872	14 promptly notify the assessment officer when the Department
3873	3873	15 receives an application under this Section. The Department's
3874	3874	16 rules shall provide that an applicant may request preliminary
3875	3875	17 approval of the mega project before the project begins, before
3876	3876	18 the applicant has entered into a fully executed incentive
3877	3877	19 agreement with the local municipality, or before the project
3878	3878	20 has been placed in service.
3879	3879	21 (b) An applicant for a mega project certificate under this
3880	3880	22 Division must provide evidence to the Department of a fully
3881	3881	23 executed incentive agreement between the company and the local
3882	3882	24 municipality as described in this Division.
3883	3883	25 (c) An applicant for a mega project certificate under this
3884	3884
3885	3885
3886	3886
3887	3887
3888	3888
3889	3889	SB1350 - 106 - LRB103 27798 HLH 54176 b
3890	3890
3891	3891
3892	3892	SB1350- 107 -LRB103 27798 HLH 54176 b SB1350 - 107 - LRB103 27798 HLH 54176 b
3893	3893	SB1350 - 107 - LRB103 27798 HLH 54176 b
3894	3894	1 Division must provide evidence to the Department of a fully
3895	3895	2 executed project labor agreement entered into with the
3896	3896	3 applicable local building trades council prior to the
3897	3897	4 commencement of any demolition, building construction, or
3898	3898	5 building renovation at the project. If the demolition,
3899	3899	6 building construction, or building renovation begins after the
3900	3900	7 application is approved, then the applicant must transmit a
3901	3901	8 copy of the fully executed project labor agreement to the
3902	3902	9 Department as soon as possible after the agreement is
3903	3903	10 executed.
3904	3904	11 (d) An applicant for a mega project certificate under this
3905	3905	12 Division must provide evidence to the Department that the
3906	3906	13 company has established the goal of awarding 20% of the total
3907	3907	14 dollar amount of contracts awarded during each calendar year
3908	3908	15 by the company, that are related to the project, to
3909	3909	16 minority-owned businesses.
3910	3910	17 (e) The Department shall approve an application for a mega
3911	3911	18 project certificate if the Department finds that the project
3912	3912	19 meets the requirements of this Division.
3913	3913	20 (f) Upon approval of the application, the Department shall
3914	3914	21 issue a mega project certificate to the applicant and transmit
3915	3915	22 a copy to the assessment officer. The certificate shall
3916	3916	23 identify the property on which the mega project is located.
3917	3917	24 (g) For each calendar year following issuance of the mega
3918	3918	25 project certificate, until the minimum investment requirements
3919	3919	26 have been met and the mega project has been placed in service,
3920	3920
3921	3921
3922	3922
3923	3923
3924	3924
3925	3925	SB1350 - 107 - LRB103 27798 HLH 54176 b
3926	3926
3927	3927
3928	3928	SB1350- 108 -LRB103 27798 HLH 54176 b SB1350 - 108 - LRB103 27798 HLH 54176 b
3929	3929	SB1350 - 108 - LRB103 27798 HLH 54176 b
3930	3930	1 the company shall deliver a report to the Department on the
3931	3931	2 status of construction or creation of the mega project and the
3932	3932	3 amount of minimum investment made in the mega project during
3933	3933	4 the preceding calendar year. If the Department determines, in
3934	3934	5 accordance with the Administrative Review Law and the Illinois
3935	3935	6 Administrative Procedure Act, that a project for which a
3936	3936	7 certificate has been issued has not met the minimum investment
3937	3937	8 requirements of this Division within the investment period,
3938	3938	9 the Department shall revoke the certificate by written notice
3939	3939	10 to the taxpayer of record and transmit a copy of the revocation
3940	3940	11 to the assessment officer.
3941	3941	12 (h) If the local municipality notifies the Department that
3942	3942	13 the incentive agreement between the company and the local
3943	3943	14 municipality has been terminated, the Department shall revoke
3944	3944	15 the certificate by written notice to the taxpayer of record
3945	3945	16 and transmit a copy of the revocation to the assessment
3946	3946	17 officer.
3947	3947	18 (35 ILCS 200/10-945 new)
3948	3948	19 Sec. 10-945. Computation of valuation.
3949	3949	20 (a) Upon receipt of the mega project certificate from the
3950	3950	21 Department, the assessment officer shall determine the base
3951	3951	22 year valuation and shall make a notation on each statement of
3952	3952	23 assessment during the assessment period that the valuation of
3953	3953	24 the project is based upon the issuance of a mega project
3954	3954	25 certificate.
3955	3955
3956	3956
3957	3957
3958	3958
3959	3959
3960	3960	SB1350 - 108 - LRB103 27798 HLH 54176 b
3961	3961
3962	3962
3963	3963	SB1350- 109 -LRB103 27798 HLH 54176 b SB1350 - 109 - LRB103 27798 HLH 54176 b
3964	3964	SB1350 - 109 - LRB103 27798 HLH 54176 b
3965	3965	1 (b) Upon revocation of a mega project certificate, the
3966	3966	2 assessment officer shall compute the assessed valuation of the
3967	3967	3 project on the basis of the then current fair cash value of the
3968	3968	4 property.
3969	3969	5 (35 ILCS 200/10-950 new)
3970	3970	6 Sec. 10-950. Transfers of interest in a mega project;
3971	3971	7 sale-leaseback arrangement; requirements.
3972	3972	8 (a) Subject to the terms of the incentive agreement
3973	3973	9 between the company and the local municipality, ownership of
3974	3974	10 or any interest in the mega project and any and all related
3975	3975	11 project property, including, without limitation, transfers of
3976	3976	12 indirect beneficial interests and equity interests in a
3977	3977	13 company owning a mega project, shall not affect the assessment
3978	3978	14 freeze or the validity of the mega project certificate issued
3979	3979	15 under this Division. Notwithstanding the provisions of this
3980	3980	16 subsection, the incentive agreement shall be a covenant
3981	3981	17 running with the land.
3982	3982	18 (b) A company may enter into lending, financing, security,
3983	3983	19 leasing, or similar arrangements, or a succession of such
3984	3984	20 arrangements, with a financing entity concerning all or part
3985	3985	21 of a project including, without limitation, a sale-leaseback
3986	3986	22 arrangement, equipment lease, build-to-suit lease, synthetic
3987	3987	23 lease, nordic lease, defeased tax benefit, or transfer lease,
3988	3988	24 an assignment, sublease, or similar arrangement, or succession
3989	3989	25 of those arrangements, with one or more financing entities
3990	3990
3991	3991
3992	3992
3993	3993
3994	3994
3995	3995	SB1350 - 109 - LRB103 27798 HLH 54176 b
3996	3996
3997	3997
3998	3998	SB1350- 110 -LRB103 27798 HLH 54176 b SB1350 - 110 - LRB103 27798 HLH 54176 b
3999	3999	SB1350 - 110 - LRB103 27798 HLH 54176 b
4000	4000	1 concerning all or part of a project, regardless of the
4001	4001	2 identity of the income tax or fee owner of the mega project.
4002	4002	3 Neither the original transfer to the financing entity nor the
4003	4003	4 later transfer from the financing entity back to the company,
4004	4004	5 pursuant to terms in the sale-leaseback agreement, shall
4005	4005	6 affect the assessment freeze or the validity of the mega
4006	4006	7 project certificate issued under this Division, regardless of
4007	4007	8 whether the income tax basis is changed for income tax
4008	4008	9 purposes.
4009	4009	10 (c) The Department must receive notice of all transfers
4010	4010	11 undertaken with respect to other projects to effect a
4011	4011	12 financing. Notice shall be made in writing within 60 days
4012	4012	13 after the transfer, identifying each transferee and containing
4013	4013	14 other information required by the Department with the
4014	4014	15 appropriate returns. Failure to meet this notice requirement
4015	4015	16 does not adversely affect the assessment freeze.
4016	4016	17 (35 ILCS 200/10-955 new)
4017	4017	18 Sec. 10-955. Minimum investment by company affiliates. To
4018	4018	19 be eligible for the benefits of this Division, a company must
4019	4019	20 invest the minimum investment. Investments by company
4020	4020	21 affiliates during the investment period may be applied toward
4021	4021	22 the minimum investment under this Division regardless of
4022	4022	23 whether the company affiliate was part of the project. To
4023	4023	24 qualify for the assessment freeze, the minimum investments
4024	4024	25 pursuant must be at the mega project.
4025	4025
4026	4026
4027	4027
4028	4028
4029	4029
4030	4030	SB1350 - 110 - LRB103 27798 HLH 54176 b
4031	4031
4032	4032
4033	4033	SB1350- 111 -LRB103 27798 HLH 54176 b SB1350 - 111 - LRB103 27798 HLH 54176 b
4034	4034	SB1350 - 111 - LRB103 27798 HLH 54176 b
4035	4035	1 (35 ILCS 200/10-960 new)
4036	4036	2 Sec. 10-960. Projects to be valued at fair cash value for
4037	4037	3 purposes of bonded indebtedness and limitations on property
4038	4038	4 tax extensions. Projects to which an assessment freeze applies
4039	4039	5 pursuant to this Division shall be valued at their fair cash
4040	4040	6 value for purposes of calculating a municipality's general
4041	4041	7 obligation bond limits and a taxing district's limitation on
4042	4042	8 tax extensions.
4043	4043	9 (35 ILCS 200/10-965 new)
4044	4044	10 Sec. 10-965. Abatements. Any taxing district, upon a
4045	4045	11 majority vote of its governing authority, may, after the
4046	4046	12 determination of the assessed valuation as set forth in this
4047	4047	13 Division, order the clerk of the appropriate municipality or
4048	4048	14 county to abate any portion of real property taxes otherwise
4049	4049	15 levied or extended by the taxing district on a mega project.
4050	4050	16 (35 ILCS 200/10-970 new)
4051	4051	17 Sec. 10-970. Filing of returns, contracts, and other
4052	4052	18 information; due date of payments and returns.
4053	4053	19 (a) The company and the local municipality shall file
4054	4054	20 notices, reports, and other information as required by the
4055	4055	21 Department.
4056	4056	22 (b) Special payments are due at the same time as property
4057	4057	23 tax payments and property tax returns are due for the mega
4058	4058
4059	4059
4060	4060
4061	4061
4062	4062
4063	4063	SB1350 - 111 - LRB103 27798 HLH 54176 b
4064	4064
4065	4065
4066	4066	SB1350- 112 -LRB103 27798 HLH 54176 b SB1350 - 112 - LRB103 27798 HLH 54176 b
4067	4067	SB1350 - 112 - LRB103 27798 HLH 54176 b
4068	4068	1 project property.
4069	4069	2 (c) Failure to make a timely special payment results in
4070	4070	3 the assessment of penalties as if the payment were a
4071	4071	4 delinquent property tax payment or return.
4072	4072	5 (d) Within 30 days after the date of execution of an
4073	4073	6 incentive agreement, a copy of the incentive agreement must be
4074	4074	7 filed with the Department, the county assessor, and the county
4075	4075	8 auditor for the county in which the mega project is located.
4076	4076	9 (35 ILCS 200/10-980 new)
4077	4077	10 Sec. 10-980. Rules. The Department may issue rulings and
4078	4078	11 adopt rules as necessary to carry out the purpose of this
4079	4079	12 Division.
4080	4080	13 (35 ILCS 200/10-990 new)
4081	4081	14 Sec. 10-990. Invalidity. If all or any part of this
4082	4082	15 Division is determined to be unconstitutional or otherwise
4083	4083	16 unenforceable by a court of competent jurisdiction, a company
4084	4084	17 has 180 days from the date of the determination to transfer
4085	4085	18 title to a mega project to an authorized economic development
4086	4086	19 authority, which may qualify for property tax assessment under
4087	4087	20 this Division or which may be exempt from property taxes.
4088	4088	21 Section 97. Severability. The provisions of this Act are
4089	4089	22 severable under Section 1.31 of the Statute on Statutes.
4090	4090	23 Section 99. Effective date. This Act takes effect June 1,
4091	4091
4092	4092
4093	4093
4094	4094
4095	4095
4096	4096	SB1350 - 112 - LRB103 27798 HLH 54176 b
4097	4097
4098	4098
4099	4099	SB1350- 113 -LRB103 27798 HLH 54176 b SB1350 - 113 - LRB103 27798 HLH 54176 b
4100	4100	SB1350 - 113 - LRB103 27798 HLH 54176 b
4101	4101	1 2023.
4102	4102
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4106	4106
4107	4107	SB1350 - 113 - LRB103 27798 HLH 54176 b