Illinois Senate Bill SB1705 Enrolled / Bill

                    SB1705 EnrolledLRB103 00134 HLH 45138 b   SB1705 Enrolled  LRB103 00134 HLH 45138 b
  SB1705 Enrolled  LRB103 00134 HLH 45138 b
1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Section
5  3-5 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use of the following tangible
8  personal property is exempt from the tax imposed by this Act:
9  (1) Personal property purchased from a corporation,
10  society, association, foundation, institution, or
11  organization, other than a limited liability company, that is
12  organized and operated as a not-for-profit service enterprise
13  for the benefit of persons 65 years of age or older if the
14  personal property was not purchased by the enterprise for the
15  purpose of resale by the enterprise.
16  (2) Personal property purchased by a not-for-profit
17  Illinois county fair association for use in conducting,
18  operating, or promoting the county fair.
19  (3) Personal property purchased by a not-for-profit arts
20  or cultural organization that establishes, by proof required
21  by the Department by rule, that it has received an exemption
22  under Section 501(c)(3) of the Internal Revenue Code and that
23  is organized and operated primarily for the presentation or

 

  SB1705 Enrolled  LRB103 00134 HLH 45138 b


SB1705 Enrolled- 2 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 2 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 2 - LRB103 00134 HLH 45138 b
1  support of arts or cultural programming, activities, or
2  services. These organizations include, but are not limited to,
3  music and dramatic arts organizations such as symphony
4  orchestras and theatrical groups, arts and cultural service
5  organizations, local arts councils, visual arts organizations,
6  and media arts organizations. On and after July 1, 2001 (the
7  effective date of Public Act 92-35), however, an entity
8  otherwise eligible for this exemption shall not make tax-free
9  purchases unless it has an active identification number issued
10  by the Department.
11  (4) Except as otherwise provided in this Act, personal
12  Personal property purchased by a governmental body, by a
13  corporation, society, association, foundation, or institution
14  organized and operated exclusively for charitable, religious,
15  or educational purposes, or by a not-for-profit corporation,
16  society, association, foundation, institution, or organization
17  that has no compensated officers or employees and that is
18  organized and operated primarily for the recreation of persons
19  55 years of age or older. A limited liability company may
20  qualify for the exemption under this paragraph only if the
21  limited liability company is organized and operated
22  exclusively for educational purposes. On and after July 1,
23  1987, however, no entity otherwise eligible for this exemption
24  shall make tax-free purchases unless it has an active
25  exemption identification number issued by the Department.
26  (5) Until July 1, 2003, a passenger car that is a

 

 

  SB1705 Enrolled - 2 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 3 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 3 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 3 - LRB103 00134 HLH 45138 b
1  replacement vehicle to the extent that the purchase price of
2  the car is subject to the Replacement Vehicle Tax.
3  (6) Until July 1, 2003 and beginning again on September 1,
4  2004 through August 30, 2014, graphic arts machinery and
5  equipment, including repair and replacement parts, both new
6  and used, and including that manufactured on special order,
7  certified by the purchaser to be used primarily for graphic
8  arts production, and including machinery and equipment
9  purchased for lease. Equipment includes chemicals or chemicals
10  acting as catalysts but only if the chemicals or chemicals
11  acting as catalysts effect a direct and immediate change upon
12  a graphic arts product. Beginning on July 1, 2017, graphic
13  arts machinery and equipment is included in the manufacturing
14  and assembling machinery and equipment exemption under
15  paragraph (18).
16  (7) Farm chemicals.
17  (8) Legal tender, currency, medallions, or gold or silver
18  coinage issued by the State of Illinois, the government of the
19  United States of America, or the government of any foreign
20  country, and bullion.
21  (9) Personal property purchased from a teacher-sponsored
22  student organization affiliated with an elementary or
23  secondary school located in Illinois.
24  (10) A motor vehicle that is used for automobile renting,
25  as defined in the Automobile Renting Occupation and Use Tax
26  Act.

 

 

  SB1705 Enrolled - 3 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 4 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 4 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 4 - LRB103 00134 HLH 45138 b
1  (11) Farm machinery and equipment, both new and used,
2  including that manufactured on special order, certified by the
3  purchaser to be used primarily for production agriculture or
4  State or federal agricultural programs, including individual
5  replacement parts for the machinery and equipment, including
6  machinery and equipment purchased for lease, and including
7  implements of husbandry defined in Section 1-130 of the
8  Illinois Vehicle Code, farm machinery and agricultural
9  chemical and fertilizer spreaders, and nurse wagons required
10  to be registered under Section 3-809 of the Illinois Vehicle
11  Code, but excluding other motor vehicles required to be
12  registered under the Illinois Vehicle Code. Horticultural
13  polyhouses or hoop houses used for propagating, growing, or
14  overwintering plants shall be considered farm machinery and
15  equipment under this item (11). Agricultural chemical tender
16  tanks and dry boxes shall include units sold separately from a
17  motor vehicle required to be licensed and units sold mounted
18  on a motor vehicle required to be licensed if the selling price
19  of the tender is separately stated.
20  Farm machinery and equipment shall include precision
21  farming equipment that is installed or purchased to be
22  installed on farm machinery and equipment including, but not
23  limited to, tractors, harvesters, sprayers, planters, seeders,
24  or spreaders. Precision farming equipment includes, but is not
25  limited to, soil testing sensors, computers, monitors,
26  software, global positioning and mapping systems, and other

 

 

  SB1705 Enrolled - 4 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 5 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 5 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 5 - LRB103 00134 HLH 45138 b
1  such equipment.
2  Farm machinery and equipment also includes computers,
3  sensors, software, and related equipment used primarily in the
4  computer-assisted operation of production agriculture
5  facilities, equipment, and activities such as, but not limited
6  to, the collection, monitoring, and correlation of animal and
7  crop data for the purpose of formulating animal diets and
8  agricultural chemicals. This item (11) is exempt from the
9  provisions of Section 3-90.
10  (12) Until June 30, 2013, fuel and petroleum products sold
11  to or used by an air common carrier, certified by the carrier
12  to be used for consumption, shipment, or storage in the
13  conduct of its business as an air common carrier, for a flight
14  destined for or returning from a location or locations outside
15  the United States without regard to previous or subsequent
16  domestic stopovers.
17  Beginning July 1, 2013, fuel and petroleum products sold
18  to or used by an air carrier, certified by the carrier to be
19  used for consumption, shipment, or storage in the conduct of
20  its business as an air common carrier, for a flight that (i) is
21  engaged in foreign trade or is engaged in trade between the
22  United States and any of its possessions and (ii) transports
23  at least one individual or package for hire from the city of
24  origination to the city of final destination on the same
25  aircraft, without regard to a change in the flight number of
26  that aircraft.

 

 

  SB1705 Enrolled - 5 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 6 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 6 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 6 - LRB103 00134 HLH 45138 b
1  (13) Proceeds of mandatory service charges separately
2  stated on customers' bills for the purchase and consumption of
3  food and beverages purchased at retail from a retailer, to the
4  extent that the proceeds of the service charge are in fact
5  turned over as tips or as a substitute for tips to the
6  employees who participate directly in preparing, serving,
7  hosting or cleaning up the food or beverage function with
8  respect to which the service charge is imposed.
9  (14) Until July 1, 2003, oil field exploration, drilling,
10  and production equipment, including (i) rigs and parts of
11  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
12  pipe and tubular goods, including casing and drill strings,
13  (iii) pumps and pump-jack units, (iv) storage tanks and flow
14  lines, (v) any individual replacement part for oil field
15  exploration, drilling, and production equipment, and (vi)
16  machinery and equipment purchased for lease; but excluding
17  motor vehicles required to be registered under the Illinois
18  Vehicle Code.
19  (15) Photoprocessing machinery and equipment, including
20  repair and replacement parts, both new and used, including
21  that manufactured on special order, certified by the purchaser
22  to be used primarily for photoprocessing, and including
23  photoprocessing machinery and equipment purchased for lease.
24  (16) Until July 1, 2028, coal and aggregate exploration,
25  mining, off-highway hauling, processing, maintenance, and
26  reclamation equipment, including replacement parts and

 

 

  SB1705 Enrolled - 6 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 7 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 7 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 7 - LRB103 00134 HLH 45138 b
1  equipment, and including equipment purchased for lease, but
2  excluding motor vehicles required to be registered under the
3  Illinois Vehicle Code. The changes made to this Section by
4  Public Act 97-767 apply on and after July 1, 2003, but no claim
5  for credit or refund is allowed on or after August 16, 2013
6  (the effective date of Public Act 98-456) for such taxes paid
7  during the period beginning July 1, 2003 and ending on August
8  16, 2013 (the effective date of Public Act 98-456).
9  (17) Until July 1, 2003, distillation machinery and
10  equipment, sold as a unit or kit, assembled or installed by the
11  retailer, certified by the user to be used only for the
12  production of ethyl alcohol that will be used for consumption
13  as motor fuel or as a component of motor fuel for the personal
14  use of the user, and not subject to sale or resale.
15  (18) Manufacturing and assembling machinery and equipment
16  used primarily in the process of manufacturing or assembling
17  tangible personal property for wholesale or retail sale or
18  lease, whether that sale or lease is made directly by the
19  manufacturer or by some other person, whether the materials
20  used in the process are owned by the manufacturer or some other
21  person, or whether that sale or lease is made apart from or as
22  an incident to the seller's engaging in the service occupation
23  of producing machines, tools, dies, jigs, patterns, gauges, or
24  other similar items of no commercial value on special order
25  for a particular purchaser. The exemption provided by this
26  paragraph (18) includes production related tangible personal

 

 

  SB1705 Enrolled - 7 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 8 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 8 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 8 - LRB103 00134 HLH 45138 b
1  property, as defined in Section 3-50, purchased on or after
2  July 1, 2019. The exemption provided by this paragraph (18)
3  does not include machinery and equipment used in (i) the
4  generation of electricity for wholesale or retail sale; (ii)
5  the generation or treatment of natural or artificial gas for
6  wholesale or retail sale that is delivered to customers
7  through pipes, pipelines, or mains; or (iii) the treatment of
8  water for wholesale or retail sale that is delivered to
9  customers through pipes, pipelines, or mains. The provisions
10  of Public Act 98-583 are declaratory of existing law as to the
11  meaning and scope of this exemption. Beginning on July 1,
12  2017, the exemption provided by this paragraph (18) includes,
13  but is not limited to, graphic arts machinery and equipment,
14  as defined in paragraph (6) of this Section.
15  (19) Personal property delivered to a purchaser or
16  purchaser's donee inside Illinois when the purchase order for
17  that personal property was received by a florist located
18  outside Illinois who has a florist located inside Illinois
19  deliver the personal property.
20  (20) Semen used for artificial insemination of livestock
21  for direct agricultural production.
22  (21) Horses, or interests in horses, registered with and
23  meeting the requirements of any of the Arabian Horse Club
24  Registry of America, Appaloosa Horse Club, American Quarter
25  Horse Association, United States Trotting Association, or
26  Jockey Club, as appropriate, used for purposes of breeding or

 

 

  SB1705 Enrolled - 8 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 9 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 9 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 9 - LRB103 00134 HLH 45138 b
1  racing for prizes. This item (21) is exempt from the
2  provisions of Section 3-90, and the exemption provided for
3  under this item (21) applies for all periods beginning May 30,
4  1995, but no claim for credit or refund is allowed on or after
5  January 1, 2008 for such taxes paid during the period
6  beginning May 30, 2000 and ending on January 1, 2008.
7  (22) Computers and communications equipment utilized for
8  any hospital purpose and equipment used in the diagnosis,
9  analysis, or treatment of hospital patients purchased by a
10  lessor who leases the equipment, under a lease of one year or
11  longer executed or in effect at the time the lessor would
12  otherwise be subject to the tax imposed by this Act, to a
13  hospital that has been issued an active tax exemption
14  identification number by the Department under Section 1g of
15  the Retailers' Occupation Tax Act. If the equipment is leased
16  in a manner that does not qualify for this exemption or is used
17  in any other non-exempt manner, the lessor shall be liable for
18  the tax imposed under this Act or the Service Use Tax Act, as
19  the case may be, based on the fair market value of the property
20  at the time the non-qualifying use occurs. No lessor shall
21  collect or attempt to collect an amount (however designated)
22  that purports to reimburse that lessor for the tax imposed by
23  this Act or the Service Use Tax Act, as the case may be, if the
24  tax has not been paid by the lessor. If a lessor improperly
25  collects any such amount from the lessee, the lessee shall
26  have a legal right to claim a refund of that amount from the

 

 

  SB1705 Enrolled - 9 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 10 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 10 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 10 - LRB103 00134 HLH 45138 b
1  lessor. If, however, that amount is not refunded to the lessee
2  for any reason, the lessor is liable to pay that amount to the
3  Department.
4  (23) Personal property purchased by a lessor who leases
5  the property, under a lease of one year or longer executed or
6  in effect at the time the lessor would otherwise be subject to
7  the tax imposed by this Act, to a governmental body that has
8  been issued an active sales tax exemption identification
9  number by the Department under Section 1g of the Retailers'
10  Occupation Tax Act. If the property is leased in a manner that
11  does not qualify for this exemption or used in any other
12  non-exempt manner, the lessor shall be liable for the tax
13  imposed under this Act or the Service Use Tax Act, as the case
14  may be, based on the fair market value of the property at the
15  time the non-qualifying use occurs. No lessor shall collect or
16  attempt to collect an amount (however designated) that
17  purports to reimburse that lessor for the tax imposed by this
18  Act or the Service Use Tax Act, as the case may be, if the tax
19  has not been paid by the lessor. If a lessor improperly
20  collects any such amount from the lessee, the lessee shall
21  have a legal right to claim a refund of that amount from the
22  lessor. If, however, that amount is not refunded to the lessee
23  for any reason, the lessor is liable to pay that amount to the
24  Department.
25  (24) Beginning with taxable years ending on or after
26  December 31, 1995 and ending with taxable years ending on or

 

 

  SB1705 Enrolled - 10 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 11 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 11 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 11 - LRB103 00134 HLH 45138 b
1  before December 31, 2004, personal property that is donated
2  for disaster relief to be used in a State or federally declared
3  disaster area in Illinois or bordering Illinois by a
4  manufacturer or retailer that is registered in this State to a
5  corporation, society, association, foundation, or institution
6  that has been issued a sales tax exemption identification
7  number by the Department that assists victims of the disaster
8  who reside within the declared disaster area.
9  (25) Beginning with taxable years ending on or after
10  December 31, 1995 and ending with taxable years ending on or
11  before December 31, 2004, personal property that is used in
12  the performance of infrastructure repairs in this State,
13  including but not limited to municipal roads and streets,
14  access roads, bridges, sidewalks, waste disposal systems,
15  water and sewer line extensions, water distribution and
16  purification facilities, storm water drainage and retention
17  facilities, and sewage treatment facilities, resulting from a
18  State or federally declared disaster in Illinois or bordering
19  Illinois when such repairs are initiated on facilities located
20  in the declared disaster area within 6 months after the
21  disaster.
22  (26) Beginning July 1, 1999, game or game birds purchased
23  at a "game breeding and hunting preserve area" as that term is
24  used in the Wildlife Code. This paragraph is exempt from the
25  provisions of Section 3-90.
26  (27) A motor vehicle, as that term is defined in Section

 

 

  SB1705 Enrolled - 11 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 12 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 12 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 12 - LRB103 00134 HLH 45138 b
1  1-146 of the Illinois Vehicle Code, that is donated to a
2  corporation, limited liability company, society, association,
3  foundation, or institution that is determined by the
4  Department to be organized and operated exclusively for
5  educational purposes. For purposes of this exemption, "a
6  corporation, limited liability company, society, association,
7  foundation, or institution organized and operated exclusively
8  for educational purposes" means all tax-supported public
9  schools, private schools that offer systematic instruction in
10  useful branches of learning by methods common to public
11  schools and that compare favorably in their scope and
12  intensity with the course of study presented in tax-supported
13  schools, and vocational or technical schools or institutes
14  organized and operated exclusively to provide a course of
15  study of not less than 6 weeks duration and designed to prepare
16  individuals to follow a trade or to pursue a manual,
17  technical, mechanical, industrial, business, or commercial
18  occupation.
19  (28) Beginning January 1, 2000, personal property,
20  including food, purchased through fundraising events for the
21  benefit of a public or private elementary or secondary school,
22  a group of those schools, or one or more school districts if
23  the events are sponsored by an entity recognized by the school
24  district that consists primarily of volunteers and includes
25  parents and teachers of the school children. This paragraph
26  does not apply to fundraising events (i) for the benefit of

 

 

  SB1705 Enrolled - 12 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 13 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 13 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 13 - LRB103 00134 HLH 45138 b
1  private home instruction or (ii) for which the fundraising
2  entity purchases the personal property sold at the events from
3  another individual or entity that sold the property for the
4  purpose of resale by the fundraising entity and that profits
5  from the sale to the fundraising entity. This paragraph is
6  exempt from the provisions of Section 3-90.
7  (29) Beginning January 1, 2000 and through December 31,
8  2001, new or used automatic vending machines that prepare and
9  serve hot food and beverages, including coffee, soup, and
10  other items, and replacement parts for these machines.
11  Beginning January 1, 2002 and through June 30, 2003, machines
12  and parts for machines used in commercial, coin-operated
13  amusement and vending business if a use or occupation tax is
14  paid on the gross receipts derived from the use of the
15  commercial, coin-operated amusement and vending machines. This
16  paragraph is exempt from the provisions of Section 3-90.
17  (30) Beginning January 1, 2001 and through June 30, 2016,
18  food for human consumption that is to be consumed off the
19  premises where it is sold (other than alcoholic beverages,
20  soft drinks, and food that has been prepared for immediate
21  consumption) and prescription and nonprescription medicines,
22  drugs, medical appliances, and insulin, urine testing
23  materials, syringes, and needles used by diabetics, for human
24  use, when purchased for use by a person receiving medical
25  assistance under Article V of the Illinois Public Aid Code who
26  resides in a licensed long-term care facility, as defined in

 

 

  SB1705 Enrolled - 13 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 14 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 14 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 14 - LRB103 00134 HLH 45138 b
1  the Nursing Home Care Act, or in a licensed facility as defined
2  in the ID/DD Community Care Act, the MC/DD Act, or the
3  Specialized Mental Health Rehabilitation Act of 2013.
4  (31) Beginning on August 2, 2001 (the effective date of
5  Public Act 92-227), computers and communications equipment
6  utilized for any hospital purpose and equipment used in the
7  diagnosis, analysis, or treatment of hospital patients
8  purchased by a lessor who leases the equipment, under a lease
9  of one year or longer executed or in effect at the time the
10  lessor would otherwise be subject to the tax imposed by this
11  Act, to a hospital that has been issued an active tax exemption
12  identification number by the Department under Section 1g of
13  the Retailers' Occupation Tax Act. If the equipment is leased
14  in a manner that does not qualify for this exemption or is used
15  in any other nonexempt manner, the lessor shall be liable for
16  the tax imposed under this Act or the Service Use Tax Act, as
17  the case may be, based on the fair market value of the property
18  at the time the nonqualifying use occurs. No lessor shall
19  collect or attempt to collect an amount (however designated)
20  that purports to reimburse that lessor for the tax imposed by
21  this Act or the Service Use Tax Act, as the case may be, if the
22  tax has not been paid by the lessor. If a lessor improperly
23  collects any such amount from the lessee, the lessee shall
24  have a legal right to claim a refund of that amount from the
25  lessor. If, however, that amount is not refunded to the lessee
26  for any reason, the lessor is liable to pay that amount to the

 

 

  SB1705 Enrolled - 14 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 15 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 15 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 15 - LRB103 00134 HLH 45138 b
1  Department. This paragraph is exempt from the provisions of
2  Section 3-90.
3  (32) Beginning on August 2, 2001 (the effective date of
4  Public Act 92-227), personal property purchased by a lessor
5  who leases the property, under a lease of one year or longer
6  executed or in effect at the time the lessor would otherwise be
7  subject to the tax imposed by this Act, to a governmental body
8  that has been issued an active sales tax exemption
9  identification number by the Department under Section 1g of
10  the Retailers' Occupation Tax Act. If the property is leased
11  in a manner that does not qualify for this exemption or used in
12  any other nonexempt manner, the lessor shall be liable for the
13  tax imposed under this Act or the Service Use Tax Act, as the
14  case may be, based on the fair market value of the property at
15  the time the nonqualifying use occurs. No lessor shall collect
16  or attempt to collect an amount (however designated) that
17  purports to reimburse that lessor for the tax imposed by this
18  Act or the Service Use Tax Act, as the case may be, if the tax
19  has not been paid by the lessor. If a lessor improperly
20  collects any such amount from the lessee, the lessee shall
21  have a legal right to claim a refund of that amount from the
22  lessor. If, however, that amount is not refunded to the lessee
23  for any reason, the lessor is liable to pay that amount to the
24  Department. This paragraph is exempt from the provisions of
25  Section 3-90.
26  (33) On and after July 1, 2003 and through June 30, 2004,

 

 

  SB1705 Enrolled - 15 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 16 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 16 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 16 - LRB103 00134 HLH 45138 b
1  the use in this State of motor vehicles of the second division
2  with a gross vehicle weight in excess of 8,000 pounds and that
3  are subject to the commercial distribution fee imposed under
4  Section 3-815.1 of the Illinois Vehicle Code. Beginning on
5  July 1, 2004 and through June 30, 2005, the use in this State
6  of motor vehicles of the second division: (i) with a gross
7  vehicle weight rating in excess of 8,000 pounds; (ii) that are
8  subject to the commercial distribution fee imposed under
9  Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
10  are primarily used for commercial purposes. Through June 30,
11  2005, this exemption applies to repair and replacement parts
12  added after the initial purchase of such a motor vehicle if
13  that motor vehicle is used in a manner that would qualify for
14  the rolling stock exemption otherwise provided for in this
15  Act. For purposes of this paragraph, the term "used for
16  commercial purposes" means the transportation of persons or
17  property in furtherance of any commercial or industrial
18  enterprise, whether for-hire or not.
19  (34) Beginning January 1, 2008, tangible personal property
20  used in the construction or maintenance of a community water
21  supply, as defined under Section 3.145 of the Environmental
22  Protection Act, that is operated by a not-for-profit
23  corporation that holds a valid water supply permit issued
24  under Title IV of the Environmental Protection Act. This
25  paragraph is exempt from the provisions of Section 3-90.
26  (35) Beginning January 1, 2010 and continuing through

 

 

  SB1705 Enrolled - 16 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 17 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 17 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 17 - LRB103 00134 HLH 45138 b
1  December 31, 2024, materials, parts, equipment, components,
2  and furnishings incorporated into or upon an aircraft as part
3  of the modification, refurbishment, completion, replacement,
4  repair, or maintenance of the aircraft. This exemption
5  includes consumable supplies used in the modification,
6  refurbishment, completion, replacement, repair, and
7  maintenance of aircraft, but excludes any materials, parts,
8  equipment, components, and consumable supplies used in the
9  modification, replacement, repair, and maintenance of aircraft
10  engines or power plants, whether such engines or power plants
11  are installed or uninstalled upon any such aircraft.
12  "Consumable supplies" include, but are not limited to,
13  adhesive, tape, sandpaper, general purpose lubricants,
14  cleaning solution, latex gloves, and protective films. This
15  exemption applies only to the use of qualifying tangible
16  personal property by persons who modify, refurbish, complete,
17  repair, replace, or maintain aircraft and who (i) hold an Air
18  Agency Certificate and are empowered to operate an approved
19  repair station by the Federal Aviation Administration, (ii)
20  have a Class IV Rating, and (iii) conduct operations in
21  accordance with Part 145 of the Federal Aviation Regulations.
22  The exemption does not include aircraft operated by a
23  commercial air carrier providing scheduled passenger air
24  service pursuant to authority issued under Part 121 or Part
25  129 of the Federal Aviation Regulations. The changes made to
26  this paragraph (35) by Public Act 98-534 are declarative of

 

 

  SB1705 Enrolled - 17 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 18 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 18 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 18 - LRB103 00134 HLH 45138 b
1  existing law. It is the intent of the General Assembly that the
2  exemption under this paragraph (35) applies continuously from
3  January 1, 2010 through December 31, 2024; however, no claim
4  for credit or refund is allowed for taxes paid as a result of
5  the disallowance of this exemption on or after January 1, 2015
6  and prior to February 5, 2020 (the effective date of Public Act
7  101-629) this amendatory Act of the 101st General Assembly.
8  (36) Tangible personal property purchased by a
9  public-facilities corporation, as described in Section
10  11-65-10 of the Illinois Municipal Code, for purposes of
11  constructing or furnishing a municipal convention hall, but
12  only if the legal title to the municipal convention hall is
13  transferred to the municipality without any further
14  consideration by or on behalf of the municipality at the time
15  of the completion of the municipal convention hall or upon the
16  retirement or redemption of any bonds or other debt
17  instruments issued by the public-facilities corporation in
18  connection with the development of the municipal convention
19  hall. This exemption includes existing public-facilities
20  corporations as provided in Section 11-65-25 of the Illinois
21  Municipal Code. This paragraph is exempt from the provisions
22  of Section 3-90.
23  (37) Beginning January 1, 2017 and through December 31,
24  2026, menstrual pads, tampons, and menstrual cups.
25  (38) Merchandise that is subject to the Rental Purchase
26  Agreement Occupation and Use Tax. The purchaser must certify

 

 

  SB1705 Enrolled - 18 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 19 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 19 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 19 - LRB103 00134 HLH 45138 b
1  that the item is purchased to be rented subject to a rental
2  purchase agreement, as defined in the Rental Purchase
3  Agreement Act, and provide proof of registration under the
4  Rental Purchase Agreement Occupation and Use Tax Act. This
5  paragraph is exempt from the provisions of Section 3-90.
6  (39) Tangible personal property purchased by a purchaser
7  who is exempt from the tax imposed by this Act by operation of
8  federal law. This paragraph is exempt from the provisions of
9  Section 3-90.
10  (40) Qualified tangible personal property used in the
11  construction or operation of a data center that has been
12  granted a certificate of exemption by the Department of
13  Commerce and Economic Opportunity, whether that tangible
14  personal property is purchased by the owner, operator, or
15  tenant of the data center or by a contractor or subcontractor
16  of the owner, operator, or tenant. Data centers that would
17  have qualified for a certificate of exemption prior to January
18  1, 2020 had Public Act 101-31 been in effect may apply for and
19  obtain an exemption for subsequent purchases of computer
20  equipment or enabling software purchased or leased to upgrade,
21  supplement, or replace computer equipment or enabling software
22  purchased or leased in the original investment that would have
23  qualified.
24  The Department of Commerce and Economic Opportunity shall
25  grant a certificate of exemption under this item (40) to
26  qualified data centers as defined by Section 605-1025 of the

 

 

  SB1705 Enrolled - 19 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 20 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 20 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 20 - LRB103 00134 HLH 45138 b
1  Department of Commerce and Economic Opportunity Law of the
2  Civil Administrative Code of Illinois.
3  For the purposes of this item (40):
4  "Data center" means a building or a series of
5  buildings rehabilitated or constructed to house working
6  servers in one physical location or multiple sites within
7  the State of Illinois.
8  "Qualified tangible personal property" means:
9  electrical systems and equipment; climate control and
10  chilling equipment and systems; mechanical systems and
11  equipment; monitoring and secure systems; emergency
12  generators; hardware; computers; servers; data storage
13  devices; network connectivity equipment; racks; cabinets;
14  telecommunications cabling infrastructure; raised floor
15  systems; peripheral components or systems; software;
16  mechanical, electrical, or plumbing systems; battery
17  systems; cooling systems and towers; temperature control
18  systems; other cabling; and other data center
19  infrastructure equipment and systems necessary to operate
20  qualified tangible personal property, including fixtures;
21  and component parts of any of the foregoing, including
22  installation, maintenance, repair, refurbishment, and
23  replacement of qualified tangible personal property to
24  generate, transform, transmit, distribute, or manage
25  electricity necessary to operate qualified tangible
26  personal property; and all other tangible personal

 

 

  SB1705 Enrolled - 20 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 21 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 21 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 21 - LRB103 00134 HLH 45138 b
1  property that is essential to the operations of a computer
2  data center. The term "qualified tangible personal
3  property" also includes building materials physically
4  incorporated in to the qualifying data center. To document
5  the exemption allowed under this Section, the retailer
6  must obtain from the purchaser a copy of the certificate
7  of eligibility issued by the Department of Commerce and
8  Economic Opportunity.
9  This item (40) is exempt from the provisions of Section
10  3-90.
11  (41) Beginning July 1, 2022, breast pumps, breast pump
12  collection and storage supplies, and breast pump kits. This
13  item (41) is exempt from the provisions of Section 3-90. As
14  used in this item (41):
15  "Breast pump" means an electrically controlled or
16  manually controlled pump device designed or marketed to be
17  used to express milk from a human breast during lactation,
18  including the pump device and any battery, AC adapter, or
19  other power supply unit that is used to power the pump
20  device and is packaged and sold with the pump device at the
21  time of sale.
22  "Breast pump collection and storage supplies" means
23  items of tangible personal property designed or marketed
24  to be used in conjunction with a breast pump to collect
25  milk expressed from a human breast and to store collected
26  milk until it is ready for consumption.

 

 

  SB1705 Enrolled - 21 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 22 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 22 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 22 - LRB103 00134 HLH 45138 b
1  "Breast pump collection and storage supplies"
2  includes, but is not limited to: breast shields and breast
3  shield connectors; breast pump tubes and tubing adapters;
4  breast pump valves and membranes; backflow protectors and
5  backflow protector adaptors; bottles and bottle caps
6  specific to the operation of the breast pump; and breast
7  milk storage bags.
8  "Breast pump collection and storage supplies" does not
9  include: (1) bottles and bottle caps not specific to the
10  operation of the breast pump; (2) breast pump travel bags
11  and other similar carrying accessories, including ice
12  packs, labels, and other similar products; (3) breast pump
13  cleaning supplies; (4) nursing bras, bra pads, breast
14  shells, and other similar products; and (5) creams,
15  ointments, and other similar products that relieve
16  breastfeeding-related symptoms or conditions of the
17  breasts or nipples, unless sold as part of a breast pump
18  kit that is pre-packaged by the breast pump manufacturer
19  or distributor.
20  "Breast pump kit" means a kit that: (1) contains no
21  more than a breast pump, breast pump collection and
22  storage supplies, a rechargeable battery for operating the
23  breast pump, a breastmilk cooler, bottle stands, ice
24  packs, and a breast pump carrying case; and (2) is
25  pre-packaged as a breast pump kit by the breast pump
26  manufacturer or distributor.

 

 

  SB1705 Enrolled - 22 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 23 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 23 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 23 - LRB103 00134 HLH 45138 b
1  (42) (41) Tangible personal property sold by or on behalf
2  of the State Treasurer pursuant to the Revised Uniform
3  Unclaimed Property Act. This item (42) (41) is exempt from the
4  provisions of Section 3-90.
5  (43) Beginning on January 1, 2024, tangible personal
6  property purchased by an active duty member of the armed
7  forces of the United States who presents valid military
8  identification and purchases the property using a form of
9  payment where the federal government is the payor. The member
10  of the armed forces must complete, at the point of sale, a form
11  prescribed by the Department of Revenue documenting that the
12  transaction is eligible for the exemption under this
13  paragraph. Retailers must keep the form as documentation of
14  the exemption in their records for a period of not less than 6
15  years. "Armed forces of the United States" means the United
16  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
17  This paragraph is exempt from the provisions of Section 3-90.
18  (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
19  101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
20  6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
21  102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
22  eff. 5-27-22; revised 8-1-22.)
23  Section 10. The Service Use Tax Act is amended by changing
24  Section 3-5 as follows:

 

 

  SB1705 Enrolled - 23 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 24 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 24 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 24 - LRB103 00134 HLH 45138 b
1  (35 ILCS 110/3-5)
2  Sec. 3-5. Exemptions. Use of the following tangible
3  personal property is exempt from the tax imposed by this Act:
4  (1) Personal property purchased from a corporation,
5  society, association, foundation, institution, or
6  organization, other than a limited liability company, that is
7  organized and operated as a not-for-profit service enterprise
8  for the benefit of persons 65 years of age or older if the
9  personal property was not purchased by the enterprise for the
10  purpose of resale by the enterprise.
11  (2) Personal property purchased by a non-profit Illinois
12  county fair association for use in conducting, operating, or
13  promoting the county fair.
14  (3) Personal property purchased by a not-for-profit arts
15  or cultural organization that establishes, by proof required
16  by the Department by rule, that it has received an exemption
17  under Section 501(c)(3) of the Internal Revenue Code and that
18  is organized and operated primarily for the presentation or
19  support of arts or cultural programming, activities, or
20  services. These organizations include, but are not limited to,
21  music and dramatic arts organizations such as symphony
22  orchestras and theatrical groups, arts and cultural service
23  organizations, local arts councils, visual arts organizations,
24  and media arts organizations. On and after July 1, 2001 (the
25  effective date of Public Act 92-35), however, an entity
26  otherwise eligible for this exemption shall not make tax-free

 

 

  SB1705 Enrolled - 24 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 25 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 25 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 25 - LRB103 00134 HLH 45138 b
1  purchases unless it has an active identification number issued
2  by the Department.
3  (4) Legal tender, currency, medallions, or gold or silver
4  coinage issued by the State of Illinois, the government of the
5  United States of America, or the government of any foreign
6  country, and bullion.
7  (5) Until July 1, 2003 and beginning again on September 1,
8  2004 through August 30, 2014, graphic arts machinery and
9  equipment, including repair and replacement parts, both new
10  and used, and including that manufactured on special order or
11  purchased for lease, certified by the purchaser to be used
12  primarily for graphic arts production. Equipment includes
13  chemicals or chemicals acting as catalysts but only if the
14  chemicals or chemicals acting as catalysts effect a direct and
15  immediate change upon a graphic arts product. Beginning on
16  July 1, 2017, graphic arts machinery and equipment is included
17  in the manufacturing and assembling machinery and equipment
18  exemption under Section 2 of this Act.
19  (6) Personal property purchased from a teacher-sponsored
20  student organization affiliated with an elementary or
21  secondary school located in Illinois.
22  (7) Farm machinery and equipment, both new and used,
23  including that manufactured on special order, certified by the
24  purchaser to be used primarily for production agriculture or
25  State or federal agricultural programs, including individual
26  replacement parts for the machinery and equipment, including

 

 

  SB1705 Enrolled - 25 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 26 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 26 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 26 - LRB103 00134 HLH 45138 b
1  machinery and equipment purchased for lease, and including
2  implements of husbandry defined in Section 1-130 of the
3  Illinois Vehicle Code, farm machinery and agricultural
4  chemical and fertilizer spreaders, and nurse wagons required
5  to be registered under Section 3-809 of the Illinois Vehicle
6  Code, but excluding other motor vehicles required to be
7  registered under the Illinois Vehicle Code. Horticultural
8  polyhouses or hoop houses used for propagating, growing, or
9  overwintering plants shall be considered farm machinery and
10  equipment under this item (7). Agricultural chemical tender
11  tanks and dry boxes shall include units sold separately from a
12  motor vehicle required to be licensed and units sold mounted
13  on a motor vehicle required to be licensed if the selling price
14  of the tender is separately stated.
15  Farm machinery and equipment shall include precision
16  farming equipment that is installed or purchased to be
17  installed on farm machinery and equipment including, but not
18  limited to, tractors, harvesters, sprayers, planters, seeders,
19  or spreaders. Precision farming equipment includes, but is not
20  limited to, soil testing sensors, computers, monitors,
21  software, global positioning and mapping systems, and other
22  such equipment.
23  Farm machinery and equipment also includes computers,
24  sensors, software, and related equipment used primarily in the
25  computer-assisted operation of production agriculture
26  facilities, equipment, and activities such as, but not limited

 

 

  SB1705 Enrolled - 26 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 27 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 27 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 27 - LRB103 00134 HLH 45138 b
1  to, the collection, monitoring, and correlation of animal and
2  crop data for the purpose of formulating animal diets and
3  agricultural chemicals. This item (7) is exempt from the
4  provisions of Section 3-75.
5  (8) Until June 30, 2013, fuel and petroleum products sold
6  to or used by an air common carrier, certified by the carrier
7  to be used for consumption, shipment, or storage in the
8  conduct of its business as an air common carrier, for a flight
9  destined for or returning from a location or locations outside
10  the United States without regard to previous or subsequent
11  domestic stopovers.
12  Beginning July 1, 2013, fuel and petroleum products sold
13  to or used by an air carrier, certified by the carrier to be
14  used for consumption, shipment, or storage in the conduct of
15  its business as an air common carrier, for a flight that (i) is
16  engaged in foreign trade or is engaged in trade between the
17  United States and any of its possessions and (ii) transports
18  at least one individual or package for hire from the city of
19  origination to the city of final destination on the same
20  aircraft, without regard to a change in the flight number of
21  that aircraft.
22  (9) Proceeds of mandatory service charges separately
23  stated on customers' bills for the purchase and consumption of
24  food and beverages acquired as an incident to the purchase of a
25  service from a serviceman, to the extent that the proceeds of
26  the service charge are in fact turned over as tips or as a

 

 

  SB1705 Enrolled - 27 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 28 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 28 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 28 - LRB103 00134 HLH 45138 b
1  substitute for tips to the employees who participate directly
2  in preparing, serving, hosting or cleaning up the food or
3  beverage function with respect to which the service charge is
4  imposed.
5  (10) Until July 1, 2003, oil field exploration, drilling,
6  and production equipment, including (i) rigs and parts of
7  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
8  pipe and tubular goods, including casing and drill strings,
9  (iii) pumps and pump-jack units, (iv) storage tanks and flow
10  lines, (v) any individual replacement part for oil field
11  exploration, drilling, and production equipment, and (vi)
12  machinery and equipment purchased for lease; but excluding
13  motor vehicles required to be registered under the Illinois
14  Vehicle Code.
15  (11) Proceeds from the sale of photoprocessing machinery
16  and equipment, including repair and replacement parts, both
17  new and used, including that manufactured on special order,
18  certified by the purchaser to be used primarily for
19  photoprocessing, and including photoprocessing machinery and
20  equipment purchased for lease.
21  (12) Until July 1, 2028, coal and aggregate exploration,
22  mining, off-highway hauling, processing, maintenance, and
23  reclamation equipment, including replacement parts and
24  equipment, and including equipment purchased for lease, but
25  excluding motor vehicles required to be registered under the
26  Illinois Vehicle Code. The changes made to this Section by

 

 

  SB1705 Enrolled - 28 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 29 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 29 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 29 - LRB103 00134 HLH 45138 b
1  Public Act 97-767 apply on and after July 1, 2003, but no claim
2  for credit or refund is allowed on or after August 16, 2013
3  (the effective date of Public Act 98-456) for such taxes paid
4  during the period beginning July 1, 2003 and ending on August
5  16, 2013 (the effective date of Public Act 98-456).
6  (13) Semen used for artificial insemination of livestock
7  for direct agricultural production.
8  (14) Horses, or interests in horses, registered with and
9  meeting the requirements of any of the Arabian Horse Club
10  Registry of America, Appaloosa Horse Club, American Quarter
11  Horse Association, United States Trotting Association, or
12  Jockey Club, as appropriate, used for purposes of breeding or
13  racing for prizes. This item (14) is exempt from the
14  provisions of Section 3-75, and the exemption provided for
15  under this item (14) applies for all periods beginning May 30,
16  1995, but no claim for credit or refund is allowed on or after
17  January 1, 2008 (the effective date of Public Act 95-88) for
18  such taxes paid during the period beginning May 30, 2000 and
19  ending on January 1, 2008 (the effective date of Public Act
20  95-88).
21  (15) Computers and communications equipment utilized for
22  any hospital purpose and equipment used in the diagnosis,
23  analysis, or treatment of hospital patients purchased by a
24  lessor who leases the equipment, under a lease of one year or
25  longer executed or in effect at the time the lessor would
26  otherwise be subject to the tax imposed by this Act, to a

 

 

  SB1705 Enrolled - 29 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 30 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 30 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 30 - LRB103 00134 HLH 45138 b
1  hospital that has been issued an active tax exemption
2  identification number by the Department under Section 1g of
3  the Retailers' Occupation Tax Act. If the equipment is leased
4  in a manner that does not qualify for this exemption or is used
5  in any other non-exempt manner, the lessor shall be liable for
6  the tax imposed under this Act or the Use Tax Act, as the case
7  may be, based on the fair market value of the property at the
8  time the non-qualifying use occurs. No lessor shall collect or
9  attempt to collect an amount (however designated) that
10  purports to reimburse that lessor for the tax imposed by this
11  Act or the Use Tax Act, as the case may be, if the tax has not
12  been paid by the lessor. If a lessor improperly collects any
13  such amount from the lessee, the lessee shall have a legal
14  right to claim a refund of that amount from the lessor. If,
15  however, that amount is not refunded to the lessee for any
16  reason, the lessor is liable to pay that amount to the
17  Department.
18  (16) Personal property purchased by a lessor who leases
19  the property, under a lease of one year or longer executed or
20  in effect at the time the lessor would otherwise be subject to
21  the tax imposed by this Act, to a governmental body that has
22  been issued an active tax exemption identification number by
23  the Department under Section 1g of the Retailers' Occupation
24  Tax Act. If the property is leased in a manner that does not
25  qualify for this exemption or is used in any other non-exempt
26  manner, the lessor shall be liable for the tax imposed under

 

 

  SB1705 Enrolled - 30 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 31 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 31 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 31 - LRB103 00134 HLH 45138 b
1  this Act or the Use Tax Act, as the case may be, based on the
2  fair market value of the property at the time the
3  non-qualifying use occurs. No lessor shall collect or attempt
4  to collect an amount (however designated) that purports to
5  reimburse that lessor for the tax imposed by this Act or the
6  Use Tax Act, as the case may be, if the tax has not been paid
7  by the lessor. If a lessor improperly collects any such amount
8  from the lessee, the lessee shall have a legal right to claim a
9  refund of that amount from the lessor. If, however, that
10  amount is not refunded to the lessee for any reason, the lessor
11  is liable to pay that amount to the Department.
12  (17) Beginning with taxable years ending on or after
13  December 31, 1995 and ending with taxable years ending on or
14  before December 31, 2004, personal property that is donated
15  for disaster relief to be used in a State or federally declared
16  disaster area in Illinois or bordering Illinois by a
17  manufacturer or retailer that is registered in this State to a
18  corporation, society, association, foundation, or institution
19  that has been issued a sales tax exemption identification
20  number by the Department that assists victims of the disaster
21  who reside within the declared disaster area.
22  (18) Beginning with taxable years ending on or after
23  December 31, 1995 and ending with taxable years ending on or
24  before December 31, 2004, personal property that is used in
25  the performance of infrastructure repairs in this State,
26  including but not limited to municipal roads and streets,

 

 

  SB1705 Enrolled - 31 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 32 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 32 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 32 - LRB103 00134 HLH 45138 b
1  access roads, bridges, sidewalks, waste disposal systems,
2  water and sewer line extensions, water distribution and
3  purification facilities, storm water drainage and retention
4  facilities, and sewage treatment facilities, resulting from a
5  State or federally declared disaster in Illinois or bordering
6  Illinois when such repairs are initiated on facilities located
7  in the declared disaster area within 6 months after the
8  disaster.
9  (19) Beginning July 1, 1999, game or game birds purchased
10  at a "game breeding and hunting preserve area" as that term is
11  used in the Wildlife Code. This paragraph is exempt from the
12  provisions of Section 3-75.
13  (20) A motor vehicle, as that term is defined in Section
14  1-146 of the Illinois Vehicle Code, that is donated to a
15  corporation, limited liability company, society, association,
16  foundation, or institution that is determined by the
17  Department to be organized and operated exclusively for
18  educational purposes. For purposes of this exemption, "a
19  corporation, limited liability company, society, association,
20  foundation, or institution organized and operated exclusively
21  for educational purposes" means all tax-supported public
22  schools, private schools that offer systematic instruction in
23  useful branches of learning by methods common to public
24  schools and that compare favorably in their scope and
25  intensity with the course of study presented in tax-supported
26  schools, and vocational or technical schools or institutes

 

 

  SB1705 Enrolled - 32 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 33 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 33 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 33 - LRB103 00134 HLH 45138 b
1  organized and operated exclusively to provide a course of
2  study of not less than 6 weeks duration and designed to prepare
3  individuals to follow a trade or to pursue a manual,
4  technical, mechanical, industrial, business, or commercial
5  occupation.
6  (21) Beginning January 1, 2000, personal property,
7  including food, purchased through fundraising events for the
8  benefit of a public or private elementary or secondary school,
9  a group of those schools, or one or more school districts if
10  the events are sponsored by an entity recognized by the school
11  district that consists primarily of volunteers and includes
12  parents and teachers of the school children. This paragraph
13  does not apply to fundraising events (i) for the benefit of
14  private home instruction or (ii) for which the fundraising
15  entity purchases the personal property sold at the events from
16  another individual or entity that sold the property for the
17  purpose of resale by the fundraising entity and that profits
18  from the sale to the fundraising entity. This paragraph is
19  exempt from the provisions of Section 3-75.
20  (22) Beginning January 1, 2000 and through December 31,
21  2001, new or used automatic vending machines that prepare and
22  serve hot food and beverages, including coffee, soup, and
23  other items, and replacement parts for these machines.
24  Beginning January 1, 2002 and through June 30, 2003, machines
25  and parts for machines used in commercial, coin-operated
26  amusement and vending business if a use or occupation tax is

 

 

  SB1705 Enrolled - 33 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 34 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 34 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 34 - LRB103 00134 HLH 45138 b
1  paid on the gross receipts derived from the use of the
2  commercial, coin-operated amusement and vending machines. This
3  paragraph is exempt from the provisions of Section 3-75.
4  (23) Beginning August 23, 2001 and through June 30, 2016,
5  food for human consumption that is to be consumed off the
6  premises where it is sold (other than alcoholic beverages,
7  soft drinks, and food that has been prepared for immediate
8  consumption) and prescription and nonprescription medicines,
9  drugs, medical appliances, and insulin, urine testing
10  materials, syringes, and needles used by diabetics, for human
11  use, when purchased for use by a person receiving medical
12  assistance under Article V of the Illinois Public Aid Code who
13  resides in a licensed long-term care facility, as defined in
14  the Nursing Home Care Act, or in a licensed facility as defined
15  in the ID/DD Community Care Act, the MC/DD Act, or the
16  Specialized Mental Health Rehabilitation Act of 2013.
17  (24) Beginning on August 2, 2001 (the effective date of
18  Public Act 92-227), computers and communications equipment
19  utilized for any hospital purpose and equipment used in the
20  diagnosis, analysis, or treatment of hospital patients
21  purchased by a lessor who leases the equipment, under a lease
22  of one year or longer executed or in effect at the time the
23  lessor would otherwise be subject to the tax imposed by this
24  Act, to a hospital that has been issued an active tax exemption
25  identification number by the Department under Section 1g of
26  the Retailers' Occupation Tax Act. If the equipment is leased

 

 

  SB1705 Enrolled - 34 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 35 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 35 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 35 - LRB103 00134 HLH 45138 b
1  in a manner that does not qualify for this exemption or is used
2  in any other nonexempt manner, the lessor shall be liable for
3  the tax imposed under this Act or the Use Tax Act, as the case
4  may be, based on the fair market value of the property at the
5  time the nonqualifying use occurs. No lessor shall collect or
6  attempt to collect an amount (however designated) that
7  purports to reimburse that lessor for the tax imposed by this
8  Act or the Use Tax Act, as the case may be, if the tax has not
9  been paid by the lessor. If a lessor improperly collects any
10  such amount from the lessee, the lessee shall have a legal
11  right to claim a refund of that amount from the lessor. If,
12  however, that amount is not refunded to the lessee for any
13  reason, the lessor is liable to pay that amount to the
14  Department. This paragraph is exempt from the provisions of
15  Section 3-75.
16  (25) Beginning on August 2, 2001 (the effective date of
17  Public Act 92-227), personal property purchased by a lessor
18  who leases the property, under a lease of one year or longer
19  executed or in effect at the time the lessor would otherwise be
20  subject to the tax imposed by this Act, to a governmental body
21  that has been issued an active tax exemption identification
22  number by the Department under Section 1g of the Retailers'
23  Occupation Tax Act. If the property is leased in a manner that
24  does not qualify for this exemption or is used in any other
25  nonexempt manner, the lessor shall be liable for the tax
26  imposed under this Act or the Use Tax Act, as the case may be,

 

 

  SB1705 Enrolled - 35 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 36 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 36 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 36 - LRB103 00134 HLH 45138 b
1  based on the fair market value of the property at the time the
2  nonqualifying use occurs. No lessor shall collect or attempt
3  to collect an amount (however designated) that purports to
4  reimburse that lessor for the tax imposed by this Act or the
5  Use Tax Act, as the case may be, if the tax has not been paid
6  by the lessor. If a lessor improperly collects any such amount
7  from the lessee, the lessee shall have a legal right to claim a
8  refund of that amount from the lessor. If, however, that
9  amount is not refunded to the lessee for any reason, the lessor
10  is liable to pay that amount to the Department. This paragraph
11  is exempt from the provisions of Section 3-75.
12  (26) Beginning January 1, 2008, tangible personal property
13  used in the construction or maintenance of a community water
14  supply, as defined under Section 3.145 of the Environmental
15  Protection Act, that is operated by a not-for-profit
16  corporation that holds a valid water supply permit issued
17  under Title IV of the Environmental Protection Act. This
18  paragraph is exempt from the provisions of Section 3-75.
19  (27) Beginning January 1, 2010 and continuing through
20  December 31, 2024, materials, parts, equipment, components,
21  and furnishings incorporated into or upon an aircraft as part
22  of the modification, refurbishment, completion, replacement,
23  repair, or maintenance of the aircraft. This exemption
24  includes consumable supplies used in the modification,
25  refurbishment, completion, replacement, repair, and
26  maintenance of aircraft, but excludes any materials, parts,

 

 

  SB1705 Enrolled - 36 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 37 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 37 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 37 - LRB103 00134 HLH 45138 b
1  equipment, components, and consumable supplies used in the
2  modification, replacement, repair, and maintenance of aircraft
3  engines or power plants, whether such engines or power plants
4  are installed or uninstalled upon any such aircraft.
5  "Consumable supplies" include, but are not limited to,
6  adhesive, tape, sandpaper, general purpose lubricants,
7  cleaning solution, latex gloves, and protective films. This
8  exemption applies only to the use of qualifying tangible
9  personal property transferred incident to the modification,
10  refurbishment, completion, replacement, repair, or maintenance
11  of aircraft by persons who (i) hold an Air Agency Certificate
12  and are empowered to operate an approved repair station by the
13  Federal Aviation Administration, (ii) have a Class IV Rating,
14  and (iii) conduct operations in accordance with Part 145 of
15  the Federal Aviation Regulations. The exemption does not
16  include aircraft operated by a commercial air carrier
17  providing scheduled passenger air service pursuant to
18  authority issued under Part 121 or Part 129 of the Federal
19  Aviation Regulations. The changes made to this paragraph (27)
20  by Public Act 98-534 are declarative of existing law. It is the
21  intent of the General Assembly that the exemption under this
22  paragraph (27) applies continuously from January 1, 2010
23  through December 31, 2024; however, no claim for credit or
24  refund is allowed for taxes paid as a result of the
25  disallowance of this exemption on or after January 1, 2015 and
26  prior to February 5, 2020 (the effective date of Public Act

 

 

  SB1705 Enrolled - 37 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 38 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 38 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 38 - LRB103 00134 HLH 45138 b
1  101-629) this amendatory Act of the 101st General Assembly.
2  (28) Tangible personal property purchased by a
3  public-facilities corporation, as described in Section
4  11-65-10 of the Illinois Municipal Code, for purposes of
5  constructing or furnishing a municipal convention hall, but
6  only if the legal title to the municipal convention hall is
7  transferred to the municipality without any further
8  consideration by or on behalf of the municipality at the time
9  of the completion of the municipal convention hall or upon the
10  retirement or redemption of any bonds or other debt
11  instruments issued by the public-facilities corporation in
12  connection with the development of the municipal convention
13  hall. This exemption includes existing public-facilities
14  corporations as provided in Section 11-65-25 of the Illinois
15  Municipal Code. This paragraph is exempt from the provisions
16  of Section 3-75.
17  (29) Beginning January 1, 2017 and through December 31,
18  2026, menstrual pads, tampons, and menstrual cups.
19  (30) Tangible personal property transferred to a purchaser
20  who is exempt from the tax imposed by this Act by operation of
21  federal law. This paragraph is exempt from the provisions of
22  Section 3-75.
23  (31) Qualified tangible personal property used in the
24  construction or operation of a data center that has been
25  granted a certificate of exemption by the Department of
26  Commerce and Economic Opportunity, whether that tangible

 

 

  SB1705 Enrolled - 38 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 39 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 39 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 39 - LRB103 00134 HLH 45138 b
1  personal property is purchased by the owner, operator, or
2  tenant of the data center or by a contractor or subcontractor
3  of the owner, operator, or tenant. Data centers that would
4  have qualified for a certificate of exemption prior to January
5  1, 2020 had Public Act 101-31 this amendatory Act of the 101st
6  General Assembly been in effect, may apply for and obtain an
7  exemption for subsequent purchases of computer equipment or
8  enabling software purchased or leased to upgrade, supplement,
9  or replace computer equipment or enabling software purchased
10  or leased in the original investment that would have
11  qualified.
12  The Department of Commerce and Economic Opportunity shall
13  grant a certificate of exemption under this item (31) to
14  qualified data centers as defined by Section 605-1025 of the
15  Department of Commerce and Economic Opportunity Law of the
16  Civil Administrative Code of Illinois.
17  For the purposes of this item (31):
18  "Data center" means a building or a series of
19  buildings rehabilitated or constructed to house working
20  servers in one physical location or multiple sites within
21  the State of Illinois.
22  "Qualified tangible personal property" means:
23  electrical systems and equipment; climate control and
24  chilling equipment and systems; mechanical systems and
25  equipment; monitoring and secure systems; emergency
26  generators; hardware; computers; servers; data storage

 

 

  SB1705 Enrolled - 39 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 40 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 40 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 40 - LRB103 00134 HLH 45138 b
1  devices; network connectivity equipment; racks; cabinets;
2  telecommunications cabling infrastructure; raised floor
3  systems; peripheral components or systems; software;
4  mechanical, electrical, or plumbing systems; battery
5  systems; cooling systems and towers; temperature control
6  systems; other cabling; and other data center
7  infrastructure equipment and systems necessary to operate
8  qualified tangible personal property, including fixtures;
9  and component parts of any of the foregoing, including
10  installation, maintenance, repair, refurbishment, and
11  replacement of qualified tangible personal property to
12  generate, transform, transmit, distribute, or manage
13  electricity necessary to operate qualified tangible
14  personal property; and all other tangible personal
15  property that is essential to the operations of a computer
16  data center. The term "qualified tangible personal
17  property" also includes building materials physically
18  incorporated in to the qualifying data center. To document
19  the exemption allowed under this Section, the retailer
20  must obtain from the purchaser a copy of the certificate
21  of eligibility issued by the Department of Commerce and
22  Economic Opportunity.
23  This item (31) is exempt from the provisions of Section
24  3-75.
25  (32) Beginning July 1, 2022, breast pumps, breast pump
26  collection and storage supplies, and breast pump kits. This

 

 

  SB1705 Enrolled - 40 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 41 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 41 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 41 - LRB103 00134 HLH 45138 b
1  item (32) is exempt from the provisions of Section 3-75. As
2  used in this item (32):
3  "Breast pump" means an electrically controlled or
4  manually controlled pump device designed or marketed to be
5  used to express milk from a human breast during lactation,
6  including the pump device and any battery, AC adapter, or
7  other power supply unit that is used to power the pump
8  device and is packaged and sold with the pump device at the
9  time of sale.
10  "Breast pump collection and storage supplies" means
11  items of tangible personal property designed or marketed
12  to be used in conjunction with a breast pump to collect
13  milk expressed from a human breast and to store collected
14  milk until it is ready for consumption.
15  "Breast pump collection and storage supplies"
16  includes, but is not limited to: breast shields and breast
17  shield connectors; breast pump tubes and tubing adapters;
18  breast pump valves and membranes; backflow protectors and
19  backflow protector adaptors; bottles and bottle caps
20  specific to the operation of the breast pump; and breast
21  milk storage bags.
22  "Breast pump collection and storage supplies" does not
23  include: (1) bottles and bottle caps not specific to the
24  operation of the breast pump; (2) breast pump travel bags
25  and other similar carrying accessories, including ice
26  packs, labels, and other similar products; (3) breast pump

 

 

  SB1705 Enrolled - 41 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 42 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 42 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 42 - LRB103 00134 HLH 45138 b
1  cleaning supplies; (4) nursing bras, bra pads, breast
2  shells, and other similar products; and (5) creams,
3  ointments, and other similar products that relieve
4  breastfeeding-related symptoms or conditions of the
5  breasts or nipples, unless sold as part of a breast pump
6  kit that is pre-packaged by the breast pump manufacturer
7  or distributor.
8  "Breast pump kit" means a kit that: (1) contains no
9  more than a breast pump, breast pump collection and
10  storage supplies, a rechargeable battery for operating the
11  breast pump, a breastmilk cooler, bottle stands, ice
12  packs, and a breast pump carrying case; and (2) is
13  pre-packaged as a breast pump kit by the breast pump
14  manufacturer or distributor.
15  (33) (32) Tangible personal property sold by or on behalf
16  of the State Treasurer pursuant to the Revised Uniform
17  Unclaimed Property Act. This item (33) (32) is exempt from the
18  provisions of Section 3-75.
19  (34) Beginning on January 1, 2024, tangible personal
20  property purchased by an active duty member of the armed
21  forces of the United States who presents valid military
22  identification and purchases the property using a form of
23  payment where the federal government is the payor. The member
24  of the armed forces must complete, at the point of sale, a form
25  prescribed by the Department of Revenue documenting that the
26  transaction is eligible for the exemption under this

 

 

  SB1705 Enrolled - 42 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 43 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 43 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 43 - LRB103 00134 HLH 45138 b
1  paragraph. Retailers must keep the form as documentation of
2  the exemption in their records for a period of not less than 6
3  years. "Armed forces of the United States" means the United
4  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
5  This paragraph is exempt from the provisions of Section 3-75.
6  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
7  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
8  70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
9  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
10  Section 15. The Service Occupation Tax Act is amended by
11  changing Section 3-5 as follows:
12  (35 ILCS 115/3-5)
13  Sec. 3-5. Exemptions. The following tangible personal
14  property is exempt from the tax imposed by this Act:
15  (1) Personal property sold by a corporation, society,
16  association, foundation, institution, or organization, other
17  than a limited liability company, that is organized and
18  operated as a not-for-profit service enterprise for the
19  benefit of persons 65 years of age or older if the personal
20  property was not purchased by the enterprise for the purpose
21  of resale by the enterprise.
22  (2) Personal property purchased by a not-for-profit
23  Illinois county fair association for use in conducting,
24  operating, or promoting the county fair.

 

 

  SB1705 Enrolled - 43 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 44 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 44 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 44 - LRB103 00134 HLH 45138 b
1  (3) Personal property purchased by any not-for-profit arts
2  or cultural organization that establishes, by proof required
3  by the Department by rule, that it has received an exemption
4  under Section 501(c)(3) of the Internal Revenue Code and that
5  is organized and operated primarily for the presentation or
6  support of arts or cultural programming, activities, or
7  services. These organizations include, but are not limited to,
8  music and dramatic arts organizations such as symphony
9  orchestras and theatrical groups, arts and cultural service
10  organizations, local arts councils, visual arts organizations,
11  and media arts organizations. On and after July 1, 2001 (the
12  effective date of Public Act 92-35), however, an entity
13  otherwise eligible for this exemption shall not make tax-free
14  purchases unless it has an active identification number issued
15  by the Department.
16  (4) Legal tender, currency, medallions, or gold or silver
17  coinage issued by the State of Illinois, the government of the
18  United States of America, or the government of any foreign
19  country, and bullion.
20  (5) Until July 1, 2003 and beginning again on September 1,
21  2004 through August 30, 2014, graphic arts machinery and
22  equipment, including repair and replacement parts, both new
23  and used, and including that manufactured on special order or
24  purchased for lease, certified by the purchaser to be used
25  primarily for graphic arts production. Equipment includes
26  chemicals or chemicals acting as catalysts but only if the

 

 

  SB1705 Enrolled - 44 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 45 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 45 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 45 - LRB103 00134 HLH 45138 b
1  chemicals or chemicals acting as catalysts effect a direct and
2  immediate change upon a graphic arts product. Beginning on
3  July 1, 2017, graphic arts machinery and equipment is included
4  in the manufacturing and assembling machinery and equipment
5  exemption under Section 2 of this Act.
6  (6) Personal property sold by a teacher-sponsored student
7  organization affiliated with an elementary or secondary school
8  located in Illinois.
9  (7) Farm machinery and equipment, both new and used,
10  including that manufactured on special order, certified by the
11  purchaser to be used primarily for production agriculture or
12  State or federal agricultural programs, including individual
13  replacement parts for the machinery and equipment, including
14  machinery and equipment purchased for lease, and including
15  implements of husbandry defined in Section 1-130 of the
16  Illinois Vehicle Code, farm machinery and agricultural
17  chemical and fertilizer spreaders, and nurse wagons required
18  to be registered under Section 3-809 of the Illinois Vehicle
19  Code, but excluding other motor vehicles required to be
20  registered under the Illinois Vehicle Code. Horticultural
21  polyhouses or hoop houses used for propagating, growing, or
22  overwintering plants shall be considered farm machinery and
23  equipment under this item (7). Agricultural chemical tender
24  tanks and dry boxes shall include units sold separately from a
25  motor vehicle required to be licensed and units sold mounted
26  on a motor vehicle required to be licensed if the selling price

 

 

  SB1705 Enrolled - 45 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 46 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 46 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 46 - LRB103 00134 HLH 45138 b
1  of the tender is separately stated.
2  Farm machinery and equipment shall include precision
3  farming equipment that is installed or purchased to be
4  installed on farm machinery and equipment including, but not
5  limited to, tractors, harvesters, sprayers, planters, seeders,
6  or spreaders. Precision farming equipment includes, but is not
7  limited to, soil testing sensors, computers, monitors,
8  software, global positioning and mapping systems, and other
9  such equipment.
10  Farm machinery and equipment also includes computers,
11  sensors, software, and related equipment used primarily in the
12  computer-assisted operation of production agriculture
13  facilities, equipment, and activities such as, but not limited
14  to, the collection, monitoring, and correlation of animal and
15  crop data for the purpose of formulating animal diets and
16  agricultural chemicals. This item (7) is exempt from the
17  provisions of Section 3-55.
18  (8) Until June 30, 2013, fuel and petroleum products sold
19  to or used by an air common carrier, certified by the carrier
20  to be used for consumption, shipment, or storage in the
21  conduct of its business as an air common carrier, for a flight
22  destined for or returning from a location or locations outside
23  the United States without regard to previous or subsequent
24  domestic stopovers.
25  Beginning July 1, 2013, fuel and petroleum products sold
26  to or used by an air carrier, certified by the carrier to be

 

 

  SB1705 Enrolled - 46 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 47 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 47 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 47 - LRB103 00134 HLH 45138 b
1  used for consumption, shipment, or storage in the conduct of
2  its business as an air common carrier, for a flight that (i) is
3  engaged in foreign trade or is engaged in trade between the
4  United States and any of its possessions and (ii) transports
5  at least one individual or package for hire from the city of
6  origination to the city of final destination on the same
7  aircraft, without regard to a change in the flight number of
8  that aircraft.
9  (9) Proceeds of mandatory service charges separately
10  stated on customers' bills for the purchase and consumption of
11  food and beverages, to the extent that the proceeds of the
12  service charge are in fact turned over as tips or as a
13  substitute for tips to the employees who participate directly
14  in preparing, serving, hosting or cleaning up the food or
15  beverage function with respect to which the service charge is
16  imposed.
17  (10) Until July 1, 2003, oil field exploration, drilling,
18  and production equipment, including (i) rigs and parts of
19  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
20  pipe and tubular goods, including casing and drill strings,
21  (iii) pumps and pump-jack units, (iv) storage tanks and flow
22  lines, (v) any individual replacement part for oil field
23  exploration, drilling, and production equipment, and (vi)
24  machinery and equipment purchased for lease; but excluding
25  motor vehicles required to be registered under the Illinois
26  Vehicle Code.

 

 

  SB1705 Enrolled - 47 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 48 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 48 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 48 - LRB103 00134 HLH 45138 b
1  (11) Photoprocessing machinery and equipment, including
2  repair and replacement parts, both new and used, including
3  that manufactured on special order, certified by the purchaser
4  to be used primarily for photoprocessing, and including
5  photoprocessing machinery and equipment purchased for lease.
6  (12) Until July 1, 2028, coal and aggregate exploration,
7  mining, off-highway hauling, processing, maintenance, and
8  reclamation equipment, including replacement parts and
9  equipment, and including equipment purchased for lease, but
10  excluding motor vehicles required to be registered under the
11  Illinois Vehicle Code. The changes made to this Section by
12  Public Act 97-767 apply on and after July 1, 2003, but no claim
13  for credit or refund is allowed on or after August 16, 2013
14  (the effective date of Public Act 98-456) for such taxes paid
15  during the period beginning July 1, 2003 and ending on August
16  16, 2013 (the effective date of Public Act 98-456).
17  (13) Beginning January 1, 1992 and through June 30, 2016,
18  food for human consumption that is to be consumed off the
19  premises where it is sold (other than alcoholic beverages,
20  soft drinks and food that has been prepared for immediate
21  consumption) and prescription and non-prescription medicines,
22  drugs, medical appliances, and insulin, urine testing
23  materials, syringes, and needles used by diabetics, for human
24  use, when purchased for use by a person receiving medical
25  assistance under Article V of the Illinois Public Aid Code who
26  resides in a licensed long-term care facility, as defined in

 

 

  SB1705 Enrolled - 48 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 49 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 49 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 49 - LRB103 00134 HLH 45138 b
1  the Nursing Home Care Act, or in a licensed facility as defined
2  in the ID/DD Community Care Act, the MC/DD Act, or the
3  Specialized Mental Health Rehabilitation Act of 2013.
4  (14) Semen used for artificial insemination of livestock
5  for direct agricultural production.
6  (15) Horses, or interests in horses, registered with and
7  meeting the requirements of any of the Arabian Horse Club
8  Registry of America, Appaloosa Horse Club, American Quarter
9  Horse Association, United States Trotting Association, or
10  Jockey Club, as appropriate, used for purposes of breeding or
11  racing for prizes. This item (15) is exempt from the
12  provisions of Section 3-55, and the exemption provided for
13  under this item (15) applies for all periods beginning May 30,
14  1995, but no claim for credit or refund is allowed on or after
15  January 1, 2008 (the effective date of Public Act 95-88) for
16  such taxes paid during the period beginning May 30, 2000 and
17  ending on January 1, 2008 (the effective date of Public Act
18  95-88).
19  (16) Computers and communications equipment utilized for
20  any hospital purpose and equipment used in the diagnosis,
21  analysis, or treatment of hospital patients sold to a lessor
22  who leases the equipment, under a lease of one year or longer
23  executed or in effect at the time of the purchase, to a
24  hospital that has been issued an active tax exemption
25  identification number by the Department under Section 1g of
26  the Retailers' Occupation Tax Act.

 

 

  SB1705 Enrolled - 49 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 50 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 50 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 50 - LRB103 00134 HLH 45138 b
1  (17) Personal property sold to a lessor who leases the
2  property, under a lease of one year or longer executed or in
3  effect at the time of the purchase, to a governmental body that
4  has been issued an active tax exemption identification number
5  by the Department under Section 1g of the Retailers'
6  Occupation Tax Act.
7  (18) Beginning with taxable years ending on or after
8  December 31, 1995 and ending with taxable years ending on or
9  before December 31, 2004, personal property that is donated
10  for disaster relief to be used in a State or federally declared
11  disaster area in Illinois or bordering Illinois by a
12  manufacturer or retailer that is registered in this State to a
13  corporation, society, association, foundation, or institution
14  that has been issued a sales tax exemption identification
15  number by the Department that assists victims of the disaster
16  who reside within the declared disaster area.
17  (19) Beginning with taxable years ending on or after
18  December 31, 1995 and ending with taxable years ending on or
19  before December 31, 2004, personal property that is used in
20  the performance of infrastructure repairs in this State,
21  including but not limited to municipal roads and streets,
22  access roads, bridges, sidewalks, waste disposal systems,
23  water and sewer line extensions, water distribution and
24  purification facilities, storm water drainage and retention
25  facilities, and sewage treatment facilities, resulting from a
26  State or federally declared disaster in Illinois or bordering

 

 

  SB1705 Enrolled - 50 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 51 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 51 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 51 - LRB103 00134 HLH 45138 b
1  Illinois when such repairs are initiated on facilities located
2  in the declared disaster area within 6 months after the
3  disaster.
4  (20) Beginning July 1, 1999, game or game birds sold at a
5  "game breeding and hunting preserve area" as that term is used
6  in the Wildlife Code. This paragraph is exempt from the
7  provisions of Section 3-55.
8  (21) A motor vehicle, as that term is defined in Section
9  1-146 of the Illinois Vehicle Code, that is donated to a
10  corporation, limited liability company, society, association,
11  foundation, or institution that is determined by the
12  Department to be organized and operated exclusively for
13  educational purposes. For purposes of this exemption, "a
14  corporation, limited liability company, society, association,
15  foundation, or institution organized and operated exclusively
16  for educational purposes" means all tax-supported public
17  schools, private schools that offer systematic instruction in
18  useful branches of learning by methods common to public
19  schools and that compare favorably in their scope and
20  intensity with the course of study presented in tax-supported
21  schools, and vocational or technical schools or institutes
22  organized and operated exclusively to provide a course of
23  study of not less than 6 weeks duration and designed to prepare
24  individuals to follow a trade or to pursue a manual,
25  technical, mechanical, industrial, business, or commercial
26  occupation.

 

 

  SB1705 Enrolled - 51 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 52 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 52 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 52 - LRB103 00134 HLH 45138 b
1  (22) Beginning January 1, 2000, personal property,
2  including food, purchased through fundraising events for the
3  benefit of a public or private elementary or secondary school,
4  a group of those schools, or one or more school districts if
5  the events are sponsored by an entity recognized by the school
6  district that consists primarily of volunteers and includes
7  parents and teachers of the school children. This paragraph
8  does not apply to fundraising events (i) for the benefit of
9  private home instruction or (ii) for which the fundraising
10  entity purchases the personal property sold at the events from
11  another individual or entity that sold the property for the
12  purpose of resale by the fundraising entity and that profits
13  from the sale to the fundraising entity. This paragraph is
14  exempt from the provisions of Section 3-55.
15  (23) Beginning January 1, 2000 and through December 31,
16  2001, new or used automatic vending machines that prepare and
17  serve hot food and beverages, including coffee, soup, and
18  other items, and replacement parts for these machines.
19  Beginning January 1, 2002 and through June 30, 2003, machines
20  and parts for machines used in commercial, coin-operated
21  amusement and vending business if a use or occupation tax is
22  paid on the gross receipts derived from the use of the
23  commercial, coin-operated amusement and vending machines. This
24  paragraph is exempt from the provisions of Section 3-55.
25  (24) Beginning on August 2, 2001 (the effective date of
26  Public Act 92-227), computers and communications equipment

 

 

  SB1705 Enrolled - 52 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 53 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 53 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 53 - LRB103 00134 HLH 45138 b
1  utilized for any hospital purpose and equipment used in the
2  diagnosis, analysis, or treatment of hospital patients sold to
3  a lessor who leases the equipment, under a lease of one year or
4  longer executed or in effect at the time of the purchase, to a
5  hospital that has been issued an active tax exemption
6  identification number by the Department under Section 1g of
7  the Retailers' Occupation Tax Act. This paragraph is exempt
8  from the provisions of Section 3-55.
9  (25) Beginning on August 2, 2001 (the effective date of
10  Public Act 92-227), personal property sold to a lessor who
11  leases the property, under a lease of one year or longer
12  executed or in effect at the time of the purchase, to a
13  governmental body that has been issued an active tax exemption
14  identification number by the Department under Section 1g of
15  the Retailers' Occupation Tax Act. This paragraph is exempt
16  from the provisions of Section 3-55.
17  (26) Beginning on January 1, 2002 and through June 30,
18  2016, tangible personal property purchased from an Illinois
19  retailer by a taxpayer engaged in centralized purchasing
20  activities in Illinois who will, upon receipt of the property
21  in Illinois, temporarily store the property in Illinois (i)
22  for the purpose of subsequently transporting it outside this
23  State for use or consumption thereafter solely outside this
24  State or (ii) for the purpose of being processed, fabricated,
25  or manufactured into, attached to, or incorporated into other
26  tangible personal property to be transported outside this

 

 

  SB1705 Enrolled - 53 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 54 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 54 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 54 - LRB103 00134 HLH 45138 b
1  State and thereafter used or consumed solely outside this
2  State. The Director of Revenue shall, pursuant to rules
3  adopted in accordance with the Illinois Administrative
4  Procedure Act, issue a permit to any taxpayer in good standing
5  with the Department who is eligible for the exemption under
6  this paragraph (26). The permit issued under this paragraph
7  (26) shall authorize the holder, to the extent and in the
8  manner specified in the rules adopted under this Act, to
9  purchase tangible personal property from a retailer exempt
10  from the taxes imposed by this Act. Taxpayers shall maintain
11  all necessary books and records to substantiate the use and
12  consumption of all such tangible personal property outside of
13  the State of Illinois.
14  (27) Beginning January 1, 2008, tangible personal property
15  used in the construction or maintenance of a community water
16  supply, as defined under Section 3.145 of the Environmental
17  Protection Act, that is operated by a not-for-profit
18  corporation that holds a valid water supply permit issued
19  under Title IV of the Environmental Protection Act. This
20  paragraph is exempt from the provisions of Section 3-55.
21  (28) Tangible personal property sold to a
22  public-facilities corporation, as described in Section
23  11-65-10 of the Illinois Municipal Code, for purposes of
24  constructing or furnishing a municipal convention hall, but
25  only if the legal title to the municipal convention hall is
26  transferred to the municipality without any further

 

 

  SB1705 Enrolled - 54 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 55 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 55 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 55 - LRB103 00134 HLH 45138 b
1  consideration by or on behalf of the municipality at the time
2  of the completion of the municipal convention hall or upon the
3  retirement or redemption of any bonds or other debt
4  instruments issued by the public-facilities corporation in
5  connection with the development of the municipal convention
6  hall. This exemption includes existing public-facilities
7  corporations as provided in Section 11-65-25 of the Illinois
8  Municipal Code. This paragraph is exempt from the provisions
9  of Section 3-55.
10  (29) Beginning January 1, 2010 and continuing through
11  December 31, 2024, materials, parts, equipment, components,
12  and furnishings incorporated into or upon an aircraft as part
13  of the modification, refurbishment, completion, replacement,
14  repair, or maintenance of the aircraft. This exemption
15  includes consumable supplies used in the modification,
16  refurbishment, completion, replacement, repair, and
17  maintenance of aircraft, but excludes any materials, parts,
18  equipment, components, and consumable supplies used in the
19  modification, replacement, repair, and maintenance of aircraft
20  engines or power plants, whether such engines or power plants
21  are installed or uninstalled upon any such aircraft.
22  "Consumable supplies" include, but are not limited to,
23  adhesive, tape, sandpaper, general purpose lubricants,
24  cleaning solution, latex gloves, and protective films. This
25  exemption applies only to the transfer of qualifying tangible
26  personal property incident to the modification, refurbishment,

 

 

  SB1705 Enrolled - 55 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 56 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 56 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 56 - LRB103 00134 HLH 45138 b
1  completion, replacement, repair, or maintenance of an aircraft
2  by persons who (i) hold an Air Agency Certificate and are
3  empowered to operate an approved repair station by the Federal
4  Aviation Administration, (ii) have a Class IV Rating, and
5  (iii) conduct operations in accordance with Part 145 of the
6  Federal Aviation Regulations. The exemption does not include
7  aircraft operated by a commercial air carrier providing
8  scheduled passenger air service pursuant to authority issued
9  under Part 121 or Part 129 of the Federal Aviation
10  Regulations. The changes made to this paragraph (29) by Public
11  Act 98-534 are declarative of existing law. It is the intent of
12  the General Assembly that the exemption under this paragraph
13  (29) applies continuously from January 1, 2010 through
14  December 31, 2024; however, no claim for credit or refund is
15  allowed for taxes paid as a result of the disallowance of this
16  exemption on or after January 1, 2015 and prior to February 5,
17  2020 (the effective date of Public Act 101-629) this
18  amendatory Act of the 101st General Assembly.
19  (30) Beginning January 1, 2017 and through December 31,
20  2026, menstrual pads, tampons, and menstrual cups.
21  (31) Tangible personal property transferred to a purchaser
22  who is exempt from tax by operation of federal law. This
23  paragraph is exempt from the provisions of Section 3-55.
24  (32) Qualified tangible personal property used in the
25  construction or operation of a data center that has been
26  granted a certificate of exemption by the Department of

 

 

  SB1705 Enrolled - 56 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 57 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 57 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 57 - LRB103 00134 HLH 45138 b
1  Commerce and Economic Opportunity, whether that tangible
2  personal property is purchased by the owner, operator, or
3  tenant of the data center or by a contractor or subcontractor
4  of the owner, operator, or tenant. Data centers that would
5  have qualified for a certificate of exemption prior to January
6  1, 2020 had Public Act 101-31 this amendatory Act of the 101st
7  General Assembly been in effect, may apply for and obtain an
8  exemption for subsequent purchases of computer equipment or
9  enabling software purchased or leased to upgrade, supplement,
10  or replace computer equipment or enabling software purchased
11  or leased in the original investment that would have
12  qualified.
13  The Department of Commerce and Economic Opportunity shall
14  grant a certificate of exemption under this item (32) to
15  qualified data centers as defined by Section 605-1025 of the
16  Department of Commerce and Economic Opportunity Law of the
17  Civil Administrative Code of Illinois.
18  For the purposes of this item (32):
19  "Data center" means a building or a series of
20  buildings rehabilitated or constructed to house working
21  servers in one physical location or multiple sites within
22  the State of Illinois.
23  "Qualified tangible personal property" means:
24  electrical systems and equipment; climate control and
25  chilling equipment and systems; mechanical systems and
26  equipment; monitoring and secure systems; emergency

 

 

  SB1705 Enrolled - 57 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 58 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 58 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 58 - LRB103 00134 HLH 45138 b
1  generators; hardware; computers; servers; data storage
2  devices; network connectivity equipment; racks; cabinets;
3  telecommunications cabling infrastructure; raised floor
4  systems; peripheral components or systems; software;
5  mechanical, electrical, or plumbing systems; battery
6  systems; cooling systems and towers; temperature control
7  systems; other cabling; and other data center
8  infrastructure equipment and systems necessary to operate
9  qualified tangible personal property, including fixtures;
10  and component parts of any of the foregoing, including
11  installation, maintenance, repair, refurbishment, and
12  replacement of qualified tangible personal property to
13  generate, transform, transmit, distribute, or manage
14  electricity necessary to operate qualified tangible
15  personal property; and all other tangible personal
16  property that is essential to the operations of a computer
17  data center. The term "qualified tangible personal
18  property" also includes building materials physically
19  incorporated in to the qualifying data center. To document
20  the exemption allowed under this Section, the retailer
21  must obtain from the purchaser a copy of the certificate
22  of eligibility issued by the Department of Commerce and
23  Economic Opportunity.
24  This item (32) is exempt from the provisions of Section
25  3-55.
26  (33) Beginning July 1, 2022, breast pumps, breast pump

 

 

  SB1705 Enrolled - 58 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 59 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 59 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 59 - LRB103 00134 HLH 45138 b
1  collection and storage supplies, and breast pump kits. This
2  item (33) is exempt from the provisions of Section 3-55. As
3  used in this item (33):
4  "Breast pump" means an electrically controlled or
5  manually controlled pump device designed or marketed to be
6  used to express milk from a human breast during lactation,
7  including the pump device and any battery, AC adapter, or
8  other power supply unit that is used to power the pump
9  device and is packaged and sold with the pump device at the
10  time of sale.
11  "Breast pump collection and storage supplies" means
12  items of tangible personal property designed or marketed
13  to be used in conjunction with a breast pump to collect
14  milk expressed from a human breast and to store collected
15  milk until it is ready for consumption.
16  "Breast pump collection and storage supplies"
17  includes, but is not limited to: breast shields and breast
18  shield connectors; breast pump tubes and tubing adapters;
19  breast pump valves and membranes; backflow protectors and
20  backflow protector adaptors; bottles and bottle caps
21  specific to the operation of the breast pump; and breast
22  milk storage bags.
23  "Breast pump collection and storage supplies" does not
24  include: (1) bottles and bottle caps not specific to the
25  operation of the breast pump; (2) breast pump travel bags
26  and other similar carrying accessories, including ice

 

 

  SB1705 Enrolled - 59 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 60 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 60 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 60 - LRB103 00134 HLH 45138 b
1  packs, labels, and other similar products; (3) breast pump
2  cleaning supplies; (4) nursing bras, bra pads, breast
3  shells, and other similar products; and (5) creams,
4  ointments, and other similar products that relieve
5  breastfeeding-related symptoms or conditions of the
6  breasts or nipples, unless sold as part of a breast pump
7  kit that is pre-packaged by the breast pump manufacturer
8  or distributor.
9  "Breast pump kit" means a kit that: (1) contains no
10  more than a breast pump, breast pump collection and
11  storage supplies, a rechargeable battery for operating the
12  breast pump, a breastmilk cooler, bottle stands, ice
13  packs, and a breast pump carrying case; and (2) is
14  pre-packaged as a breast pump kit by the breast pump
15  manufacturer or distributor.
16  (34) (33) Tangible personal property sold by or on behalf
17  of the State Treasurer pursuant to the Revised Uniform
18  Unclaimed Property Act. This item (34) (33) is exempt from the
19  provisions of Section 3-55.
20  (35) Beginning on January 1, 2024, tangible personal
21  property purchased by an active duty member of the armed
22  forces of the United States who presents valid military
23  identification and purchases the property using a form of
24  payment where the federal government is the payor. The member
25  of the armed forces must complete, at the point of sale, a form
26  prescribed by the Department of Revenue documenting that the

 

 

  SB1705 Enrolled - 60 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 61 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 61 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 61 - LRB103 00134 HLH 45138 b
1  transaction is eligible for the exemption under this
2  paragraph. Retailers must keep the form as documentation of
3  the exemption in their records for a period of not less than 6
4  years. "Armed forces of the United States" means the United
5  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
6  This paragraph is exempt from the provisions of Section 3-55.
7  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
8  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
9  70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
10  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
11  Section 20. The Retailers' Occupation Tax Act is amended
12  by changing Section 2-5 as follows:
13  (35 ILCS 120/2-5)
14  Sec. 2-5. Exemptions. Gross receipts from proceeds from
15  the sale of the following tangible personal property are
16  exempt from the tax imposed by this Act:
17  (1) Farm chemicals.
18  (2) Farm machinery and equipment, both new and used,
19  including that manufactured on special order, certified by
20  the purchaser to be used primarily for production
21  agriculture or State or federal agricultural programs,
22  including individual replacement parts for the machinery
23  and equipment, including machinery and equipment purchased
24  for lease, and including implements of husbandry defined

 

 

  SB1705 Enrolled - 61 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 62 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 62 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 62 - LRB103 00134 HLH 45138 b
1  in Section 1-130 of the Illinois Vehicle Code, farm
2  machinery and agricultural chemical and fertilizer
3  spreaders, and nurse wagons required to be registered
4  under Section 3-809 of the Illinois Vehicle Code, but
5  excluding other motor vehicles required to be registered
6  under the Illinois Vehicle Code. Horticultural polyhouses
7  or hoop houses used for propagating, growing, or
8  overwintering plants shall be considered farm machinery
9  and equipment under this item (2). Agricultural chemical
10  tender tanks and dry boxes shall include units sold
11  separately from a motor vehicle required to be licensed
12  and units sold mounted on a motor vehicle required to be
13  licensed, if the selling price of the tender is separately
14  stated.
15  Farm machinery and equipment shall include precision
16  farming equipment that is installed or purchased to be
17  installed on farm machinery and equipment including, but
18  not limited to, tractors, harvesters, sprayers, planters,
19  seeders, or spreaders. Precision farming equipment
20  includes, but is not limited to, soil testing sensors,
21  computers, monitors, software, global positioning and
22  mapping systems, and other such equipment.
23  Farm machinery and equipment also includes computers,
24  sensors, software, and related equipment used primarily in
25  the computer-assisted operation of production agriculture
26  facilities, equipment, and activities such as, but not

 

 

  SB1705 Enrolled - 62 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 63 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 63 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 63 - LRB103 00134 HLH 45138 b
1  limited to, the collection, monitoring, and correlation of
2  animal and crop data for the purpose of formulating animal
3  diets and agricultural chemicals. This item (2) is exempt
4  from the provisions of Section 2-70.
5  (3) Until July 1, 2003, distillation machinery and
6  equipment, sold as a unit or kit, assembled or installed
7  by the retailer, certified by the user to be used only for
8  the production of ethyl alcohol that will be used for
9  consumption as motor fuel or as a component of motor fuel
10  for the personal use of the user, and not subject to sale
11  or resale.
12  (4) Until July 1, 2003 and beginning again September
13  1, 2004 through August 30, 2014, graphic arts machinery
14  and equipment, including repair and replacement parts,
15  both new and used, and including that manufactured on
16  special order or purchased for lease, certified by the
17  purchaser to be used primarily for graphic arts
18  production. Equipment includes chemicals or chemicals
19  acting as catalysts but only if the chemicals or chemicals
20  acting as catalysts effect a direct and immediate change
21  upon a graphic arts product. Beginning on July 1, 2017,
22  graphic arts machinery and equipment is included in the
23  manufacturing and assembling machinery and equipment
24  exemption under paragraph (14).
25  (5) A motor vehicle that is used for automobile
26  renting, as defined in the Automobile Renting Occupation

 

 

  SB1705 Enrolled - 63 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 64 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 64 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 64 - LRB103 00134 HLH 45138 b
1  and Use Tax Act. This paragraph is exempt from the
2  provisions of Section 2-70.
3  (6) Personal property sold by a teacher-sponsored
4  student organization affiliated with an elementary or
5  secondary school located in Illinois.
6  (7) Until July 1, 2003, proceeds of that portion of
7  the selling price of a passenger car the sale of which is
8  subject to the Replacement Vehicle Tax.
9  (8) Personal property sold to an Illinois county fair
10  association for use in conducting, operating, or promoting
11  the county fair.
12  (9) Personal property sold to a not-for-profit arts or
13  cultural organization that establishes, by proof required
14  by the Department by rule, that it has received an
15  exemption under Section 501(c)(3) of the Internal Revenue
16  Code and that is organized and operated primarily for the
17  presentation or support of arts or cultural programming,
18  activities, or services. These organizations include, but
19  are not limited to, music and dramatic arts organizations
20  such as symphony orchestras and theatrical groups, arts
21  and cultural service organizations, local arts councils,
22  visual arts organizations, and media arts organizations.
23  On and after July 1, 2001 (the effective date of Public Act
24  92-35), however, an entity otherwise eligible for this
25  exemption shall not make tax-free purchases unless it has
26  an active identification number issued by the Department.

 

 

  SB1705 Enrolled - 64 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 65 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 65 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 65 - LRB103 00134 HLH 45138 b
1  (10) Personal property sold by a corporation, society,
2  association, foundation, institution, or organization,
3  other than a limited liability company, that is organized
4  and operated as a not-for-profit service enterprise for
5  the benefit of persons 65 years of age or older if the
6  personal property was not purchased by the enterprise for
7  the purpose of resale by the enterprise.
8  (11) Except as otherwise provided in this Section,
9  personal Personal property sold to a governmental body, to
10  a corporation, society, association, foundation, or
11  institution organized and operated exclusively for
12  charitable, religious, or educational purposes, or to a
13  not-for-profit corporation, society, association,
14  foundation, institution, or organization that has no
15  compensated officers or employees and that is organized
16  and operated primarily for the recreation of persons 55
17  years of age or older. A limited liability company may
18  qualify for the exemption under this paragraph only if the
19  limited liability company is organized and operated
20  exclusively for educational purposes. On and after July 1,
21  1987, however, no entity otherwise eligible for this
22  exemption shall make tax-free purchases unless it has an
23  active identification number issued by the Department.
24  (12) (Blank).
25  (12-5) On and after July 1, 2003 and through June 30,
26  2004, motor vehicles of the second division with a gross

 

 

  SB1705 Enrolled - 65 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 66 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 66 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 66 - LRB103 00134 HLH 45138 b
1  vehicle weight in excess of 8,000 pounds that are subject
2  to the commercial distribution fee imposed under Section
3  3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
4  2004 and through June 30, 2005, the use in this State of
5  motor vehicles of the second division: (i) with a gross
6  vehicle weight rating in excess of 8,000 pounds; (ii) that
7  are subject to the commercial distribution fee imposed
8  under Section 3-815.1 of the Illinois Vehicle Code; and
9  (iii) that are primarily used for commercial purposes.
10  Through June 30, 2005, this exemption applies to repair
11  and replacement parts added after the initial purchase of
12  such a motor vehicle if that motor vehicle is used in a
13  manner that would qualify for the rolling stock exemption
14  otherwise provided for in this Act. For purposes of this
15  paragraph, "used for commercial purposes" means the
16  transportation of persons or property in furtherance of
17  any commercial or industrial enterprise whether for-hire
18  or not.
19  (13) Proceeds from sales to owners, lessors, or
20  shippers of tangible personal property that is utilized by
21  interstate carriers for hire for use as rolling stock
22  moving in interstate commerce and equipment operated by a
23  telecommunications provider, licensed as a common carrier
24  by the Federal Communications Commission, which is
25  permanently installed in or affixed to aircraft moving in
26  interstate commerce.

 

 

  SB1705 Enrolled - 66 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 67 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 67 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 67 - LRB103 00134 HLH 45138 b
1  (14) Machinery and equipment that will be used by the
2  purchaser, or a lessee of the purchaser, primarily in the
3  process of manufacturing or assembling tangible personal
4  property for wholesale or retail sale or lease, whether
5  the sale or lease is made directly by the manufacturer or
6  by some other person, whether the materials used in the
7  process are owned by the manufacturer or some other
8  person, or whether the sale or lease is made apart from or
9  as an incident to the seller's engaging in the service
10  occupation of producing machines, tools, dies, jigs,
11  patterns, gauges, or other similar items of no commercial
12  value on special order for a particular purchaser. The
13  exemption provided by this paragraph (14) does not include
14  machinery and equipment used in (i) the generation of
15  electricity for wholesale or retail sale; (ii) the
16  generation or treatment of natural or artificial gas for
17  wholesale or retail sale that is delivered to customers
18  through pipes, pipelines, or mains; or (iii) the treatment
19  of water for wholesale or retail sale that is delivered to
20  customers through pipes, pipelines, or mains. The
21  provisions of Public Act 98-583 are declaratory of
22  existing law as to the meaning and scope of this
23  exemption. Beginning on July 1, 2017, the exemption
24  provided by this paragraph (14) includes, but is not
25  limited to, graphic arts machinery and equipment, as
26  defined in paragraph (4) of this Section.

 

 

  SB1705 Enrolled - 67 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 68 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 68 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 68 - LRB103 00134 HLH 45138 b
1  (15) Proceeds of mandatory service charges separately
2  stated on customers' bills for purchase and consumption of
3  food and beverages, to the extent that the proceeds of the
4  service charge are in fact turned over as tips or as a
5  substitute for tips to the employees who participate
6  directly in preparing, serving, hosting or cleaning up the
7  food or beverage function with respect to which the
8  service charge is imposed.
9  (16) Tangible personal property sold to a purchaser if
10  the purchaser is exempt from use tax by operation of
11  federal law. This paragraph is exempt from the provisions
12  of Section 2-70.
13  (17) Tangible personal property sold to a common
14  carrier by rail or motor that receives the physical
15  possession of the property in Illinois and that transports
16  the property, or shares with another common carrier in the
17  transportation of the property, out of Illinois on a
18  standard uniform bill of lading showing the seller of the
19  property as the shipper or consignor of the property to a
20  destination outside Illinois, for use outside Illinois.
21  (18) Legal tender, currency, medallions, or gold or
22  silver coinage issued by the State of Illinois, the
23  government of the United States of America, or the
24  government of any foreign country, and bullion.
25  (19) Until July 1, 2003, oil field exploration,
26  drilling, and production equipment, including (i) rigs and

 

 

  SB1705 Enrolled - 68 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 69 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 69 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 69 - LRB103 00134 HLH 45138 b
1  parts of rigs, rotary rigs, cable tool rigs, and workover
2  rigs, (ii) pipe and tubular goods, including casing and
3  drill strings, (iii) pumps and pump-jack units, (iv)
4  storage tanks and flow lines, (v) any individual
5  replacement part for oil field exploration, drilling, and
6  production equipment, and (vi) machinery and equipment
7  purchased for lease; but excluding motor vehicles required
8  to be registered under the Illinois Vehicle Code.
9  (20) Photoprocessing machinery and equipment,
10  including repair and replacement parts, both new and used,
11  including that manufactured on special order, certified by
12  the purchaser to be used primarily for photoprocessing,
13  and including photoprocessing machinery and equipment
14  purchased for lease.
15  (21) Until July 1, 2028, coal and aggregate
16  exploration, mining, off-highway hauling, processing,
17  maintenance, and reclamation equipment, including
18  replacement parts and equipment, and including equipment
19  purchased for lease, but excluding motor vehicles required
20  to be registered under the Illinois Vehicle Code. The
21  changes made to this Section by Public Act 97-767 apply on
22  and after July 1, 2003, but no claim for credit or refund
23  is allowed on or after August 16, 2013 (the effective date
24  of Public Act 98-456) for such taxes paid during the
25  period beginning July 1, 2003 and ending on August 16,
26  2013 (the effective date of Public Act 98-456).

 

 

  SB1705 Enrolled - 69 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 70 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 70 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 70 - LRB103 00134 HLH 45138 b
1  (22) Until June 30, 2013, fuel and petroleum products
2  sold to or used by an air carrier, certified by the carrier
3  to be used for consumption, shipment, or storage in the
4  conduct of its business as an air common carrier, for a
5  flight destined for or returning from a location or
6  locations outside the United States without regard to
7  previous or subsequent domestic stopovers.
8  Beginning July 1, 2013, fuel and petroleum products
9  sold to or used by an air carrier, certified by the carrier
10  to be used for consumption, shipment, or storage in the
11  conduct of its business as an air common carrier, for a
12  flight that (i) is engaged in foreign trade or is engaged
13  in trade between the United States and any of its
14  possessions and (ii) transports at least one individual or
15  package for hire from the city of origination to the city
16  of final destination on the same aircraft, without regard
17  to a change in the flight number of that aircraft.
18  (23) A transaction in which the purchase order is
19  received by a florist who is located outside Illinois, but
20  who has a florist located in Illinois deliver the property
21  to the purchaser or the purchaser's donee in Illinois.
22  (24) Fuel consumed or used in the operation of ships,
23  barges, or vessels that are used primarily in or for the
24  transportation of property or the conveyance of persons
25  for hire on rivers bordering on this State if the fuel is
26  delivered by the seller to the purchaser's barge, ship, or

 

 

  SB1705 Enrolled - 70 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 71 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 71 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 71 - LRB103 00134 HLH 45138 b
1  vessel while it is afloat upon that bordering river.
2  (25) Except as provided in item (25-5) of this
3  Section, a motor vehicle sold in this State to a
4  nonresident even though the motor vehicle is delivered to
5  the nonresident in this State, if the motor vehicle is not
6  to be titled in this State, and if a drive-away permit is
7  issued to the motor vehicle as provided in Section 3-603
8  of the Illinois Vehicle Code or if the nonresident
9  purchaser has vehicle registration plates to transfer to
10  the motor vehicle upon returning to his or her home state.
11  The issuance of the drive-away permit or having the
12  out-of-state registration plates to be transferred is
13  prima facie evidence that the motor vehicle will not be
14  titled in this State.
15  (25-5) The exemption under item (25) does not apply if
16  the state in which the motor vehicle will be titled does
17  not allow a reciprocal exemption for a motor vehicle sold
18  and delivered in that state to an Illinois resident but
19  titled in Illinois. The tax collected under this Act on
20  the sale of a motor vehicle in this State to a resident of
21  another state that does not allow a reciprocal exemption
22  shall be imposed at a rate equal to the state's rate of tax
23  on taxable property in the state in which the purchaser is
24  a resident, except that the tax shall not exceed the tax
25  that would otherwise be imposed under this Act. At the
26  time of the sale, the purchaser shall execute a statement,

 

 

  SB1705 Enrolled - 71 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 72 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 72 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 72 - LRB103 00134 HLH 45138 b
1  signed under penalty of perjury, of his or her intent to
2  title the vehicle in the state in which the purchaser is a
3  resident within 30 days after the sale and of the fact of
4  the payment to the State of Illinois of tax in an amount
5  equivalent to the state's rate of tax on taxable property
6  in his or her state of residence and shall submit the
7  statement to the appropriate tax collection agency in his
8  or her state of residence. In addition, the retailer must
9  retain a signed copy of the statement in his or her
10  records. Nothing in this item shall be construed to
11  require the removal of the vehicle from this state
12  following the filing of an intent to title the vehicle in
13  the purchaser's state of residence if the purchaser titles
14  the vehicle in his or her state of residence within 30 days
15  after the date of sale. The tax collected under this Act in
16  accordance with this item (25-5) shall be proportionately
17  distributed as if the tax were collected at the 6.25%
18  general rate imposed under this Act.
19  (25-7) Beginning on July 1, 2007, no tax is imposed
20  under this Act on the sale of an aircraft, as defined in
21  Section 3 of the Illinois Aeronautics Act, if all of the
22  following conditions are met:
23  (1) the aircraft leaves this State within 15 days
24  after the later of either the issuance of the final
25  billing for the sale of the aircraft, or the
26  authorized approval for return to service, completion

 

 

  SB1705 Enrolled - 72 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 73 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 73 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 73 - LRB103 00134 HLH 45138 b
1  of the maintenance record entry, and completion of the
2  test flight and ground test for inspection, as
3  required by 14 CFR C.F.R. 91.407;
4  (2) the aircraft is not based or registered in
5  this State after the sale of the aircraft; and
6  (3) the seller retains in his or her books and
7  records and provides to the Department a signed and
8  dated certification from the purchaser, on a form
9  prescribed by the Department, certifying that the
10  requirements of this item (25-7) are met. The
11  certificate must also include the name and address of
12  the purchaser, the address of the location where the
13  aircraft is to be titled or registered, the address of
14  the primary physical location of the aircraft, and
15  other information that the Department may reasonably
16  require.
17  For purposes of this item (25-7):
18  "Based in this State" means hangared, stored, or
19  otherwise used, excluding post-sale customizations as
20  defined in this Section, for 10 or more days in each
21  12-month period immediately following the date of the sale
22  of the aircraft.
23  "Registered in this State" means an aircraft
24  registered with the Department of Transportation,
25  Aeronautics Division, or titled or registered with the
26  Federal Aviation Administration to an address located in

 

 

  SB1705 Enrolled - 73 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 74 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 74 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 74 - LRB103 00134 HLH 45138 b
1  this State.
2  This paragraph (25-7) is exempt from the provisions of
3  Section 2-70.
4  (26) Semen used for artificial insemination of
5  livestock for direct agricultural production.
6  (27) Horses, or interests in horses, registered with
7  and meeting the requirements of any of the Arabian Horse
8  Club Registry of America, Appaloosa Horse Club, American
9  Quarter Horse Association, United States Trotting
10  Association, or Jockey Club, as appropriate, used for
11  purposes of breeding or racing for prizes. This item (27)
12  is exempt from the provisions of Section 2-70, and the
13  exemption provided for under this item (27) applies for
14  all periods beginning May 30, 1995, but no claim for
15  credit or refund is allowed on or after January 1, 2008
16  (the effective date of Public Act 95-88) for such taxes
17  paid during the period beginning May 30, 2000 and ending
18  on January 1, 2008 (the effective date of Public Act
19  95-88).
20  (28) Computers and communications equipment utilized
21  for any hospital purpose and equipment used in the
22  diagnosis, analysis, or treatment of hospital patients
23  sold to a lessor who leases the equipment, under a lease of
24  one year or longer executed or in effect at the time of the
25  purchase, to a hospital that has been issued an active tax
26  exemption identification number by the Department under

 

 

  SB1705 Enrolled - 74 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 75 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 75 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 75 - LRB103 00134 HLH 45138 b
1  Section 1g of this Act.
2  (29) Personal property sold to a lessor who leases the
3  property, under a lease of one year or longer executed or
4  in effect at the time of the purchase, to a governmental
5  body that has been issued an active tax exemption
6  identification number by the Department under Section 1g
7  of this Act.
8  (30) Beginning with taxable years ending on or after
9  December 31, 1995 and ending with taxable years ending on
10  or before December 31, 2004, personal property that is
11  donated for disaster relief to be used in a State or
12  federally declared disaster area in Illinois or bordering
13  Illinois by a manufacturer or retailer that is registered
14  in this State to a corporation, society, association,
15  foundation, or institution that has been issued a sales
16  tax exemption identification number by the Department that
17  assists victims of the disaster who reside within the
18  declared disaster area.
19  (31) Beginning with taxable years ending on or after
20  December 31, 1995 and ending with taxable years ending on
21  or before December 31, 2004, personal property that is
22  used in the performance of infrastructure repairs in this
23  State, including but not limited to municipal roads and
24  streets, access roads, bridges, sidewalks, waste disposal
25  systems, water and sewer line extensions, water
26  distribution and purification facilities, storm water

 

 

  SB1705 Enrolled - 75 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 76 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 76 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 76 - LRB103 00134 HLH 45138 b
1  drainage and retention facilities, and sewage treatment
2  facilities, resulting from a State or federally declared
3  disaster in Illinois or bordering Illinois when such
4  repairs are initiated on facilities located in the
5  declared disaster area within 6 months after the disaster.
6  (32) Beginning July 1, 1999, game or game birds sold
7  at a "game breeding and hunting preserve area" as that
8  term is used in the Wildlife Code. This paragraph is
9  exempt from the provisions of Section 2-70.
10  (33) A motor vehicle, as that term is defined in
11  Section 1-146 of the Illinois Vehicle Code, that is
12  donated to a corporation, limited liability company,
13  society, association, foundation, or institution that is
14  determined by the Department to be organized and operated
15  exclusively for educational purposes. For purposes of this
16  exemption, "a corporation, limited liability company,
17  society, association, foundation, or institution organized
18  and operated exclusively for educational purposes" means
19  all tax-supported public schools, private schools that
20  offer systematic instruction in useful branches of
21  learning by methods common to public schools and that
22  compare favorably in their scope and intensity with the
23  course of study presented in tax-supported schools, and
24  vocational or technical schools or institutes organized
25  and operated exclusively to provide a course of study of
26  not less than 6 weeks duration and designed to prepare

 

 

  SB1705 Enrolled - 76 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 77 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 77 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 77 - LRB103 00134 HLH 45138 b
1  individuals to follow a trade or to pursue a manual,
2  technical, mechanical, industrial, business, or commercial
3  occupation.
4  (34) Beginning January 1, 2000, personal property,
5  including food, purchased through fundraising events for
6  the benefit of a public or private elementary or secondary
7  school, a group of those schools, or one or more school
8  districts if the events are sponsored by an entity
9  recognized by the school district that consists primarily
10  of volunteers and includes parents and teachers of the
11  school children. This paragraph does not apply to
12  fundraising events (i) for the benefit of private home
13  instruction or (ii) for which the fundraising entity
14  purchases the personal property sold at the events from
15  another individual or entity that sold the property for
16  the purpose of resale by the fundraising entity and that
17  profits from the sale to the fundraising entity. This
18  paragraph is exempt from the provisions of Section 2-70.
19  (35) Beginning January 1, 2000 and through December
20  31, 2001, new or used automatic vending machines that
21  prepare and serve hot food and beverages, including
22  coffee, soup, and other items, and replacement parts for
23  these machines. Beginning January 1, 2002 and through June
24  30, 2003, machines and parts for machines used in
25  commercial, coin-operated amusement and vending business
26  if a use or occupation tax is paid on the gross receipts

 

 

  SB1705 Enrolled - 77 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 78 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 78 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 78 - LRB103 00134 HLH 45138 b
1  derived from the use of the commercial, coin-operated
2  amusement and vending machines. This paragraph is exempt
3  from the provisions of Section 2-70.
4  (35-5) Beginning August 23, 2001 and through June 30,
5  2016, food for human consumption that is to be consumed
6  off the premises where it is sold (other than alcoholic
7  beverages, soft drinks, and food that has been prepared
8  for immediate consumption) and prescription and
9  nonprescription medicines, drugs, medical appliances, and
10  insulin, urine testing materials, syringes, and needles
11  used by diabetics, for human use, when purchased for use
12  by a person receiving medical assistance under Article V
13  of the Illinois Public Aid Code who resides in a licensed
14  long-term care facility, as defined in the Nursing Home
15  Care Act, or a licensed facility as defined in the ID/DD
16  Community Care Act, the MC/DD Act, or the Specialized
17  Mental Health Rehabilitation Act of 2013.
18  (36) Beginning August 2, 2001, computers and
19  communications equipment utilized for any hospital purpose
20  and equipment used in the diagnosis, analysis, or
21  treatment of hospital patients sold to a lessor who leases
22  the equipment, under a lease of one year or longer
23  executed or in effect at the time of the purchase, to a
24  hospital that has been issued an active tax exemption
25  identification number by the Department under Section 1g
26  of this Act. This paragraph is exempt from the provisions

 

 

  SB1705 Enrolled - 78 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 79 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 79 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 79 - LRB103 00134 HLH 45138 b
1  of Section 2-70.
2  (37) Beginning August 2, 2001, personal property sold
3  to a lessor who leases the property, under a lease of one
4  year or longer executed or in effect at the time of the
5  purchase, to a governmental body that has been issued an
6  active tax exemption identification number by the
7  Department under Section 1g of this Act. This paragraph is
8  exempt from the provisions of Section 2-70.
9  (38) Beginning on January 1, 2002 and through June 30,
10  2016, tangible personal property purchased from an
11  Illinois retailer by a taxpayer engaged in centralized
12  purchasing activities in Illinois who will, upon receipt
13  of the property in Illinois, temporarily store the
14  property in Illinois (i) for the purpose of subsequently
15  transporting it outside this State for use or consumption
16  thereafter solely outside this State or (ii) for the
17  purpose of being processed, fabricated, or manufactured
18  into, attached to, or incorporated into other tangible
19  personal property to be transported outside this State and
20  thereafter used or consumed solely outside this State. The
21  Director of Revenue shall, pursuant to rules adopted in
22  accordance with the Illinois Administrative Procedure Act,
23  issue a permit to any taxpayer in good standing with the
24  Department who is eligible for the exemption under this
25  paragraph (38). The permit issued under this paragraph
26  (38) shall authorize the holder, to the extent and in the

 

 

  SB1705 Enrolled - 79 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 80 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 80 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 80 - LRB103 00134 HLH 45138 b
1  manner specified in the rules adopted under this Act, to
2  purchase tangible personal property from a retailer exempt
3  from the taxes imposed by this Act. Taxpayers shall
4  maintain all necessary books and records to substantiate
5  the use and consumption of all such tangible personal
6  property outside of the State of Illinois.
7  (39) Beginning January 1, 2008, tangible personal
8  property used in the construction or maintenance of a
9  community water supply, as defined under Section 3.145 of
10  the Environmental Protection Act, that is operated by a
11  not-for-profit corporation that holds a valid water supply
12  permit issued under Title IV of the Environmental
13  Protection Act. This paragraph is exempt from the
14  provisions of Section 2-70.
15  (40) Beginning January 1, 2010 and continuing through
16  December 31, 2024, materials, parts, equipment,
17  components, and furnishings incorporated into or upon an
18  aircraft as part of the modification, refurbishment,
19  completion, replacement, repair, or maintenance of the
20  aircraft. This exemption includes consumable supplies used
21  in the modification, refurbishment, completion,
22  replacement, repair, and maintenance of aircraft, but
23  excludes any materials, parts, equipment, components, and
24  consumable supplies used in the modification, replacement,
25  repair, and maintenance of aircraft engines or power
26  plants, whether such engines or power plants are installed

 

 

  SB1705 Enrolled - 80 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 81 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 81 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 81 - LRB103 00134 HLH 45138 b
1  or uninstalled upon any such aircraft. "Consumable
2  supplies" include, but are not limited to, adhesive, tape,
3  sandpaper, general purpose lubricants, cleaning solution,
4  latex gloves, and protective films. This exemption applies
5  only to the sale of qualifying tangible personal property
6  to persons who modify, refurbish, complete, replace, or
7  maintain an aircraft and who (i) hold an Air Agency
8  Certificate and are empowered to operate an approved
9  repair station by the Federal Aviation Administration,
10  (ii) have a Class IV Rating, and (iii) conduct operations
11  in accordance with Part 145 of the Federal Aviation
12  Regulations. The exemption does not include aircraft
13  operated by a commercial air carrier providing scheduled
14  passenger air service pursuant to authority issued under
15  Part 121 or Part 129 of the Federal Aviation Regulations.
16  The changes made to this paragraph (40) by Public Act
17  98-534 are declarative of existing law. It is the intent
18  of the General Assembly that the exemption under this
19  paragraph (40) applies continuously from January 1, 2010
20  through December 31, 2024; however, no claim for credit or
21  refund is allowed for taxes paid as a result of the
22  disallowance of this exemption on or after January 1, 2015
23  and prior to February 5, 2020 (the effective date of
24  Public Act 101-629) this amendatory Act of the 101st
25  General Assembly.
26  (41) Tangible personal property sold to a

 

 

  SB1705 Enrolled - 81 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 82 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 82 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 82 - LRB103 00134 HLH 45138 b
1  public-facilities corporation, as described in Section
2  11-65-10 of the Illinois Municipal Code, for purposes of
3  constructing or furnishing a municipal convention hall,
4  but only if the legal title to the municipal convention
5  hall is transferred to the municipality without any
6  further consideration by or on behalf of the municipality
7  at the time of the completion of the municipal convention
8  hall or upon the retirement or redemption of any bonds or
9  other debt instruments issued by the public-facilities
10  corporation in connection with the development of the
11  municipal convention hall. This exemption includes
12  existing public-facilities corporations as provided in
13  Section 11-65-25 of the Illinois Municipal Code. This
14  paragraph is exempt from the provisions of Section 2-70.
15  (42) Beginning January 1, 2017 and through December
16  31, 2026, menstrual pads, tampons, and menstrual cups.
17  (43) Merchandise that is subject to the Rental
18  Purchase Agreement Occupation and Use Tax. The purchaser
19  must certify that the item is purchased to be rented
20  subject to a rental purchase agreement, as defined in the
21  Rental Purchase Agreement Act, and provide proof of
22  registration under the Rental Purchase Agreement
23  Occupation and Use Tax Act. This paragraph is exempt from
24  the provisions of Section 2-70.
25  (44) Qualified tangible personal property used in the
26  construction or operation of a data center that has been

 

 

  SB1705 Enrolled - 82 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 83 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 83 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 83 - LRB103 00134 HLH 45138 b
1  granted a certificate of exemption by the Department of
2  Commerce and Economic Opportunity, whether that tangible
3  personal property is purchased by the owner, operator, or
4  tenant of the data center or by a contractor or
5  subcontractor of the owner, operator, or tenant. Data
6  centers that would have qualified for a certificate of
7  exemption prior to January 1, 2020 had Public Act 101-31
8  this amendatory Act of the 101st General Assembly been in
9  effect, may apply for and obtain an exemption for
10  subsequent purchases of computer equipment or enabling
11  software purchased or leased to upgrade, supplement, or
12  replace computer equipment or enabling software purchased
13  or leased in the original investment that would have
14  qualified.
15  The Department of Commerce and Economic Opportunity
16  shall grant a certificate of exemption under this item
17  (44) to qualified data centers as defined by Section
18  605-1025 of the Department of Commerce and Economic
19  Opportunity Law of the Civil Administrative Code of
20  Illinois.
21  For the purposes of this item (44):
22  "Data center" means a building or a series of
23  buildings rehabilitated or constructed to house
24  working servers in one physical location or multiple
25  sites within the State of Illinois.
26  "Qualified tangible personal property" means:

 

 

  SB1705 Enrolled - 83 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 84 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 84 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 84 - LRB103 00134 HLH 45138 b
1  electrical systems and equipment; climate control and
2  chilling equipment and systems; mechanical systems and
3  equipment; monitoring and secure systems; emergency
4  generators; hardware; computers; servers; data storage
5  devices; network connectivity equipment; racks;
6  cabinets; telecommunications cabling infrastructure;
7  raised floor systems; peripheral components or
8  systems; software; mechanical, electrical, or plumbing
9  systems; battery systems; cooling systems and towers;
10  temperature control systems; other cabling; and other
11  data center infrastructure equipment and systems
12  necessary to operate qualified tangible personal
13  property, including fixtures; and component parts of
14  any of the foregoing, including installation,
15  maintenance, repair, refurbishment, and replacement of
16  qualified tangible personal property to generate,
17  transform, transmit, distribute, or manage electricity
18  necessary to operate qualified tangible personal
19  property; and all other tangible personal property
20  that is essential to the operations of a computer data
21  center. The term "qualified tangible personal
22  property" also includes building materials physically
23  incorporated into the qualifying data center. To
24  document the exemption allowed under this Section, the
25  retailer must obtain from the purchaser a copy of the
26  certificate of eligibility issued by the Department of

 

 

  SB1705 Enrolled - 84 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 85 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 85 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 85 - LRB103 00134 HLH 45138 b
1  Commerce and Economic Opportunity.
2  This item (44) is exempt from the provisions of
3  Section 2-70.
4  (45) Beginning January 1, 2020 and through December
5  31, 2020, sales of tangible personal property made by a
6  marketplace seller over a marketplace for which tax is due
7  under this Act but for which use tax has been collected and
8  remitted to the Department by a marketplace facilitator
9  under Section 2d of the Use Tax Act are exempt from tax
10  under this Act. A marketplace seller claiming this
11  exemption shall maintain books and records demonstrating
12  that the use tax on such sales has been collected and
13  remitted by a marketplace facilitator. Marketplace sellers
14  that have properly remitted tax under this Act on such
15  sales may file a claim for credit as provided in Section 6
16  of this Act. No claim is allowed, however, for such taxes
17  for which a credit or refund has been issued to the
18  marketplace facilitator under the Use Tax Act, or for
19  which the marketplace facilitator has filed a claim for
20  credit or refund under the Use Tax Act.
21  (46) Beginning July 1, 2022, breast pumps, breast pump
22  collection and storage supplies, and breast pump kits.
23  This item (46) is exempt from the provisions of Section
24  2-70. As used in this item (46):
25  "Breast pump" means an electrically controlled or
26  manually controlled pump device designed or marketed to be

 

 

  SB1705 Enrolled - 85 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 86 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 86 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 86 - LRB103 00134 HLH 45138 b
1  used to express milk from a human breast during lactation,
2  including the pump device and any battery, AC adapter, or
3  other power supply unit that is used to power the pump
4  device and is packaged and sold with the pump device at the
5  time of sale.
6  "Breast pump collection and storage supplies" means
7  items of tangible personal property designed or marketed
8  to be used in conjunction with a breast pump to collect
9  milk expressed from a human breast and to store collected
10  milk until it is ready for consumption.
11  "Breast pump collection and storage supplies"
12  includes, but is not limited to: breast shields and breast
13  shield connectors; breast pump tubes and tubing adapters;
14  breast pump valves and membranes; backflow protectors and
15  backflow protector adaptors; bottles and bottle caps
16  specific to the operation of the breast pump; and breast
17  milk storage bags.
18  "Breast pump collection and storage supplies" does not
19  include: (1) bottles and bottle caps not specific to the
20  operation of the breast pump; (2) breast pump travel bags
21  and other similar carrying accessories, including ice
22  packs, labels, and other similar products; (3) breast pump
23  cleaning supplies; (4) nursing bras, bra pads, breast
24  shells, and other similar products; and (5) creams,
25  ointments, and other similar products that relieve
26  breastfeeding-related symptoms or conditions of the

 

 

  SB1705 Enrolled - 86 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 87 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 87 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 87 - LRB103 00134 HLH 45138 b
1  breasts or nipples, unless sold as part of a breast pump
2  kit that is pre-packaged by the breast pump manufacturer
3  or distributor.
4  "Breast pump kit" means a kit that: (1) contains no
5  more than a breast pump, breast pump collection and
6  storage supplies, a rechargeable battery for operating the
7  breast pump, a breastmilk cooler, bottle stands, ice
8  packs, and a breast pump carrying case; and (2) is
9  pre-packaged as a breast pump kit by the breast pump
10  manufacturer or distributor.
11  (47) (46) Tangible personal property sold by or on
12  behalf of the State Treasurer pursuant to the Revised
13  Uniform Unclaimed Property Act. This item (47) (46) is
14  exempt from the provisions of Section 2-70.
15  (48) Beginning on January 1, 2024, tangible personal
16  property purchased by an active duty member of the armed
17  forces of the United States who presents valid military
18  identification and purchases the property using a form of
19  payment where the federal government is the payor. The
20  member of the armed forces must complete, at the point of
21  sale, a form prescribed by the Department of Revenue
22  documenting that the transaction is eligible for the
23  exemption under this paragraph. Retailers must keep the
24  form as documentation of the exemption in their records
25  for a period of not less than 6 years. "Armed forces of the
26  United States" means the United States Army, Navy, Air

 

 

  SB1705 Enrolled - 87 - LRB103 00134 HLH 45138 b


SB1705 Enrolled- 88 -LRB103 00134 HLH 45138 b   SB1705 Enrolled - 88 - LRB103 00134 HLH 45138 b
  SB1705 Enrolled - 88 - LRB103 00134 HLH 45138 b
1  Force, Marine Corps, or Coast Guard. This paragraph is
2  exempt from the provisions of Section 2-70.
3  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
5  8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
6  102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
7  eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)

 

 

  SB1705 Enrolled - 88 - LRB103 00134 HLH 45138 b