Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2188 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2188 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and medical devices are exempt from the taxes under those Acts. Effective July 1, 2023. LRB103 26023 HLH 52377 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2188 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and medical devices are exempt from the taxes under those Acts. Effective July 1, 2023. LRB103 26023 HLH 52377 b LRB103 26023 HLH 52377 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2188 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10
4	4	35 ILCS 105/3-5
5	5	35 ILCS 105/3-10
6	6	35 ILCS 110/3-5
7	7	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
8	8	35 ILCS 115/3-5
9	9	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
10	10	35 ILCS 120/2-5
11	11	35 ILCS 120/2-10
12	12	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and medical devices are exempt from the taxes under those Acts. Effective July 1, 2023.
13	13	LRB103 26023 HLH 52377 b LRB103 26023 HLH 52377 b
14	14	LRB103 26023 HLH 52377 b
15	15	A BILL FOR
16	16	SB2188LRB103 26023 HLH 52377 b SB2188 LRB103 26023 HLH 52377 b
17	17	SB2188 LRB103 26023 HLH 52377 b
18	18	1 AN ACT concerning revenue.
19	19	2 Be it enacted by the People of the State of Illinois,
20	20	3 represented in the General Assembly:
21	21	4 Section 5. The Use Tax Act is amended by changing Sections
22	22	5 3-5 and 3-10 as follows:
23	23	6 (35 ILCS 105/3-5)
24	24	7 Sec. 3-5. Exemptions. Use of the following tangible
25	25	8 personal property is exempt from the tax imposed by this Act:
26	26	9 (1) Personal property purchased from a corporation,
27	27	10 society, association, foundation, institution, or
28	28	11 organization, other than a limited liability company, that is
29	29	12 organized and operated as a not-for-profit service enterprise
30	30	13 for the benefit of persons 65 years of age or older if the
31	31	14 personal property was not purchased by the enterprise for the
32	32	15 purpose of resale by the enterprise.
33	33	16 (2) Personal property purchased by a not-for-profit
34	34	17 Illinois county fair association for use in conducting,
35	35	18 operating, or promoting the county fair.
36	36	19 (3) Personal property purchased by a not-for-profit arts
37	37	20 or cultural organization that establishes, by proof required
38	38	21 by the Department by rule, that it has received an exemption
39	39	22 under Section 501(c)(3) of the Internal Revenue Code and that
40	40	23 is organized and operated primarily for the presentation or
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44	44	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2188 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
45	45	35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10 35 ILCS 105/3-5 35 ILCS 105/3-10 35 ILCS 110/3-5 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10 35 ILCS 115/3-5 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10 35 ILCS 120/2-5 35 ILCS 120/2-10
46	46	35 ILCS 105/3-5
47	47	35 ILCS 105/3-10
48	48	35 ILCS 110/3-5
49	49	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
50	50	35 ILCS 115/3-5
51	51	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
52	52	35 ILCS 120/2-5
53	53	35 ILCS 120/2-10
54	54	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and medical devices are exempt from the taxes under those Acts. Effective July 1, 2023.
55	55	LRB103 26023 HLH 52377 b LRB103 26023 HLH 52377 b
56	56	LRB103 26023 HLH 52377 b
57	57	A BILL FOR
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63	63	35 ILCS 105/3-5
64	64	35 ILCS 105/3-10
65	65	35 ILCS 110/3-5
66	66	35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
67	67	35 ILCS 115/3-5
68	68	35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
69	69	35 ILCS 120/2-5
70	70	35 ILCS 120/2-10
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89	89	1 support of arts or cultural programming, activities, or
90	90	2 services. These organizations include, but are not limited to,
91	91	3 music and dramatic arts organizations such as symphony
92	92	4 orchestras and theatrical groups, arts and cultural service
93	93	5 organizations, local arts councils, visual arts organizations,
94	94	6 and media arts organizations. On and after July 1, 2001 (the
95	95	7 effective date of Public Act 92-35), however, an entity
96	96	8 otherwise eligible for this exemption shall not make tax-free
97	97	9 purchases unless it has an active identification number issued
98	98	10 by the Department.
99	99	11 (4) Personal property purchased by a governmental body, by
100	100	12 a corporation, society, association, foundation, or
101	101	13 institution organized and operated exclusively for charitable,
102	102	14 religious, or educational purposes, or by a not-for-profit
103	103	15 corporation, society, association, foundation, institution, or
104	104	16 organization that has no compensated officers or employees and
105	105	17 that is organized and operated primarily for the recreation of
106	106	18 persons 55 years of age or older. A limited liability company
107	107	19 may qualify for the exemption under this paragraph only if the
108	108	20 limited liability company is organized and operated
109	109	21 exclusively for educational purposes. On and after July 1,
110	110	22 1987, however, no entity otherwise eligible for this exemption
111	111	23 shall make tax-free purchases unless it has an active
112	112	24 exemption identification number issued by the Department.
113	113	25 (5) Until July 1, 2003, a passenger car that is a
114	114	26 replacement vehicle to the extent that the purchase price of
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125	125	1 the car is subject to the Replacement Vehicle Tax.
126	126	2 (6) Until July 1, 2003 and beginning again on September 1,
127	127	3 2004 through August 30, 2014, graphic arts machinery and
128	128	4 equipment, including repair and replacement parts, both new
129	129	5 and used, and including that manufactured on special order,
130	130	6 certified by the purchaser to be used primarily for graphic
131	131	7 arts production, and including machinery and equipment
132	132	8 purchased for lease. Equipment includes chemicals or chemicals
133	133	9 acting as catalysts but only if the chemicals or chemicals
134	134	10 acting as catalysts effect a direct and immediate change upon
135	135	11 a graphic arts product. Beginning on July 1, 2017, graphic
136	136	12 arts machinery and equipment is included in the manufacturing
137	137	13 and assembling machinery and equipment exemption under
138	138	14 paragraph (18).
139	139	15 (7) Farm chemicals.
140	140	16 (8) Legal tender, currency, medallions, or gold or silver
141	141	17 coinage issued by the State of Illinois, the government of the
142	142	18 United States of America, or the government of any foreign
143	143	19 country, and bullion.
144	144	20 (9) Personal property purchased from a teacher-sponsored
145	145	21 student organization affiliated with an elementary or
146	146	22 secondary school located in Illinois.
147	147	23 (10) A motor vehicle that is used for automobile renting,
148	148	24 as defined in the Automobile Renting Occupation and Use Tax
149	149	25 Act.
150	150	26 (11) Farm machinery and equipment, both new and used,
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161	161	1 including that manufactured on special order, certified by the
162	162	2 purchaser to be used primarily for production agriculture or
163	163	3 State or federal agricultural programs, including individual
164	164	4 replacement parts for the machinery and equipment, including
165	165	5 machinery and equipment purchased for lease, and including
166	166	6 implements of husbandry defined in Section 1-130 of the
167	167	7 Illinois Vehicle Code, farm machinery and agricultural
168	168	8 chemical and fertilizer spreaders, and nurse wagons required
169	169	9 to be registered under Section 3-809 of the Illinois Vehicle
170	170	10 Code, but excluding other motor vehicles required to be
171	171	11 registered under the Illinois Vehicle Code. Horticultural
172	172	12 polyhouses or hoop houses used for propagating, growing, or
173	173	13 overwintering plants shall be considered farm machinery and
174	174	14 equipment under this item (11). Agricultural chemical tender
175	175	15 tanks and dry boxes shall include units sold separately from a
176	176	16 motor vehicle required to be licensed and units sold mounted
177	177	17 on a motor vehicle required to be licensed if the selling price
178	178	18 of the tender is separately stated.
179	179	19 Farm machinery and equipment shall include precision
180	180	20 farming equipment that is installed or purchased to be
181	181	21 installed on farm machinery and equipment including, but not
182	182	22 limited to, tractors, harvesters, sprayers, planters, seeders,
183	183	23 or spreaders. Precision farming equipment includes, but is not
184	184	24 limited to, soil testing sensors, computers, monitors,
185	185	25 software, global positioning and mapping systems, and other
186	186	26 such equipment.
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197	197	1 Farm machinery and equipment also includes computers,
198	198	2 sensors, software, and related equipment used primarily in the
199	199	3 computer-assisted operation of production agriculture
200	200	4 facilities, equipment, and activities such as, but not limited
201	201	5 to, the collection, monitoring, and correlation of animal and
202	202	6 crop data for the purpose of formulating animal diets and
203	203	7 agricultural chemicals. This item (11) is exempt from the
204	204	8 provisions of Section 3-90.
205	205	9 (12) Until June 30, 2013, fuel and petroleum products sold
206	206	10 to or used by an air common carrier, certified by the carrier
207	207	11 to be used for consumption, shipment, or storage in the
208	208	12 conduct of its business as an air common carrier, for a flight
209	209	13 destined for or returning from a location or locations outside
210	210	14 the United States without regard to previous or subsequent
211	211	15 domestic stopovers.
212	212	16 Beginning July 1, 2013, fuel and petroleum products sold
213	213	17 to or used by an air carrier, certified by the carrier to be
214	214	18 used for consumption, shipment, or storage in the conduct of
215	215	19 its business as an air common carrier, for a flight that (i) is
216	216	20 engaged in foreign trade or is engaged in trade between the
217	217	21 United States and any of its possessions and (ii) transports
218	218	22 at least one individual or package for hire from the city of
219	219	23 origination to the city of final destination on the same
220	220	24 aircraft, without regard to a change in the flight number of
221	221	25 that aircraft.
222	222	26 (13) Proceeds of mandatory service charges separately
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233	233	1 stated on customers' bills for the purchase and consumption of
234	234	2 food and beverages purchased at retail from a retailer, to the
235	235	3 extent that the proceeds of the service charge are in fact
236	236	4 turned over as tips or as a substitute for tips to the
237	237	5 employees who participate directly in preparing, serving,
238	238	6 hosting or cleaning up the food or beverage function with
239	239	7 respect to which the service charge is imposed.
240	240	8 (14) Until July 1, 2003, oil field exploration, drilling,
241	241	9 and production equipment, including (i) rigs and parts of
242	242	10 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
243	243	11 pipe and tubular goods, including casing and drill strings,
244	244	12 (iii) pumps and pump-jack units, (iv) storage tanks and flow
245	245	13 lines, (v) any individual replacement part for oil field
246	246	14 exploration, drilling, and production equipment, and (vi)
247	247	15 machinery and equipment purchased for lease; but excluding
248	248	16 motor vehicles required to be registered under the Illinois
249	249	17 Vehicle Code.
250	250	18 (15) Photoprocessing machinery and equipment, including
251	251	19 repair and replacement parts, both new and used, including
252	252	20 that manufactured on special order, certified by the purchaser
253	253	21 to be used primarily for photoprocessing, and including
254	254	22 photoprocessing machinery and equipment purchased for lease.
255	255	23 (16) Until July 1, 2028, coal and aggregate exploration,
256	256	24 mining, off-highway hauling, processing, maintenance, and
257	257	25 reclamation equipment, including replacement parts and
258	258	26 equipment, and including equipment purchased for lease, but
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269	269	1 excluding motor vehicles required to be registered under the
270	270	2 Illinois Vehicle Code. The changes made to this Section by
271	271	3 Public Act 97-767 apply on and after July 1, 2003, but no claim
272	272	4 for credit or refund is allowed on or after August 16, 2013
273	273	5 (the effective date of Public Act 98-456) for such taxes paid
274	274	6 during the period beginning July 1, 2003 and ending on August
275	275	7 16, 2013 (the effective date of Public Act 98-456).
276	276	8 (17) Until July 1, 2003, distillation machinery and
277	277	9 equipment, sold as a unit or kit, assembled or installed by the
278	278	10 retailer, certified by the user to be used only for the
279	279	11 production of ethyl alcohol that will be used for consumption
280	280	12 as motor fuel or as a component of motor fuel for the personal
281	281	13 use of the user, and not subject to sale or resale.
282	282	14 (18) Manufacturing and assembling machinery and equipment
283	283	15 used primarily in the process of manufacturing or assembling
284	284	16 tangible personal property for wholesale or retail sale or
285	285	17 lease, whether that sale or lease is made directly by the
286	286	18 manufacturer or by some other person, whether the materials
287	287	19 used in the process are owned by the manufacturer or some other
288	288	20 person, or whether that sale or lease is made apart from or as
289	289	21 an incident to the seller's engaging in the service occupation
290	290	22 of producing machines, tools, dies, jigs, patterns, gauges, or
291	291	23 other similar items of no commercial value on special order
292	292	24 for a particular purchaser. The exemption provided by this
293	293	25 paragraph (18) includes production related tangible personal
294	294	26 property, as defined in Section 3-50, purchased on or after
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305	305	1 July 1, 2019. The exemption provided by this paragraph (18)
306	306	2 does not include machinery and equipment used in (i) the
307	307	3 generation of electricity for wholesale or retail sale; (ii)
308	308	4 the generation or treatment of natural or artificial gas for
309	309	5 wholesale or retail sale that is delivered to customers
310	310	6 through pipes, pipelines, or mains; or (iii) the treatment of
311	311	7 water for wholesale or retail sale that is delivered to
312	312	8 customers through pipes, pipelines, or mains. The provisions
313	313	9 of Public Act 98-583 are declaratory of existing law as to the
314	314	10 meaning and scope of this exemption. Beginning on July 1,
315	315	11 2017, the exemption provided by this paragraph (18) includes,
316	316	12 but is not limited to, graphic arts machinery and equipment,
317	317	13 as defined in paragraph (6) of this Section.
318	318	14 (19) Personal property delivered to a purchaser or
319	319	15 purchaser's donee inside Illinois when the purchase order for
320	320	16 that personal property was received by a florist located
321	321	17 outside Illinois who has a florist located inside Illinois
322	322	18 deliver the personal property.
323	323	19 (20) Semen used for artificial insemination of livestock
324	324	20 for direct agricultural production.
325	325	21 (21) Horses, or interests in horses, registered with and
326	326	22 meeting the requirements of any of the Arabian Horse Club
327	327	23 Registry of America, Appaloosa Horse Club, American Quarter
328	328	24 Horse Association, United States Trotting Association, or
329	329	25 Jockey Club, as appropriate, used for purposes of breeding or
330	330	26 racing for prizes. This item (21) is exempt from the
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341	341	1 provisions of Section 3-90, and the exemption provided for
342	342	2 under this item (21) applies for all periods beginning May 30,
343	343	3 1995, but no claim for credit or refund is allowed on or after
344	344	4 January 1, 2008 for such taxes paid during the period
345	345	5 beginning May 30, 2000 and ending on January 1, 2008.
346	346	6 (22) Computers and communications equipment utilized for
347	347	7 any hospital purpose and equipment used in the diagnosis,
348	348	8 analysis, or treatment of hospital patients purchased by a
349	349	9 lessor who leases the equipment, under a lease of one year or
350	350	10 longer executed or in effect at the time the lessor would
351	351	11 otherwise be subject to the tax imposed by this Act, to a
352	352	12 hospital that has been issued an active tax exemption
353	353	13 identification number by the Department under Section 1g of
354	354	14 the Retailers' Occupation Tax Act. If the equipment is leased
355	355	15 in a manner that does not qualify for this exemption or is used
356	356	16 in any other non-exempt manner, the lessor shall be liable for
357	357	17 the tax imposed under this Act or the Service Use Tax Act, as
358	358	18 the case may be, based on the fair market value of the property
359	359	19 at the time the non-qualifying use occurs. No lessor shall
360	360	20 collect or attempt to collect an amount (however designated)
361	361	21 that purports to reimburse that lessor for the tax imposed by
362	362	22 this Act or the Service Use Tax Act, as the case may be, if the
363	363	23 tax has not been paid by the lessor. If a lessor improperly
364	364	24 collects any such amount from the lessee, the lessee shall
365	365	25 have a legal right to claim a refund of that amount from the
366	366	26 lessor. If, however, that amount is not refunded to the lessee
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377	377	1 for any reason, the lessor is liable to pay that amount to the
378	378	2 Department.
379	379	3 (23) Personal property purchased by a lessor who leases
380	380	4 the property, under a lease of one year or longer executed or
381	381	5 in effect at the time the lessor would otherwise be subject to
382	382	6 the tax imposed by this Act, to a governmental body that has
383	383	7 been issued an active sales tax exemption identification
384	384	8 number by the Department under Section 1g of the Retailers'
385	385	9 Occupation Tax Act. If the property is leased in a manner that
386	386	10 does not qualify for this exemption or used in any other
387	387	11 non-exempt manner, the lessor shall be liable for the tax
388	388	12 imposed under this Act or the Service Use Tax Act, as the case
389	389	13 may be, based on the fair market value of the property at the
390	390	14 time the non-qualifying use occurs. No lessor shall collect or
391	391	15 attempt to collect an amount (however designated) that
392	392	16 purports to reimburse that lessor for the tax imposed by this
393	393	17 Act or the Service Use Tax Act, as the case may be, if the tax
394	394	18 has not been paid by the lessor. If a lessor improperly
395	395	19 collects any such amount from the lessee, the lessee shall
396	396	20 have a legal right to claim a refund of that amount from the
397	397	21 lessor. If, however, that amount is not refunded to the lessee
398	398	22 for any reason, the lessor is liable to pay that amount to the
399	399	23 Department.
400	400	24 (24) Beginning with taxable years ending on or after
401	401	25 December 31, 1995 and ending with taxable years ending on or
402	402	26 before December 31, 2004, personal property that is donated
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413	413	1 for disaster relief to be used in a State or federally declared
414	414	2 disaster area in Illinois or bordering Illinois by a
415	415	3 manufacturer or retailer that is registered in this State to a
416	416	4 corporation, society, association, foundation, or institution
417	417	5 that has been issued a sales tax exemption identification
418	418	6 number by the Department that assists victims of the disaster
419	419	7 who reside within the declared disaster area.
420	420	8 (25) Beginning with taxable years ending on or after
421	421	9 December 31, 1995 and ending with taxable years ending on or
422	422	10 before December 31, 2004, personal property that is used in
423	423	11 the performance of infrastructure repairs in this State,
424	424	12 including but not limited to municipal roads and streets,
425	425	13 access roads, bridges, sidewalks, waste disposal systems,
426	426	14 water and sewer line extensions, water distribution and
427	427	15 purification facilities, storm water drainage and retention
428	428	16 facilities, and sewage treatment facilities, resulting from a
429	429	17 State or federally declared disaster in Illinois or bordering
430	430	18 Illinois when such repairs are initiated on facilities located
431	431	19 in the declared disaster area within 6 months after the
432	432	20 disaster.
433	433	21 (26) Beginning July 1, 1999, game or game birds purchased
434	434	22 at a "game breeding and hunting preserve area" as that term is
435	435	23 used in the Wildlife Code. This paragraph is exempt from the
436	436	24 provisions of Section 3-90.
437	437	25 (27) A motor vehicle, as that term is defined in Section
438	438	26 1-146 of the Illinois Vehicle Code, that is donated to a
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448	448	SB2188 - 12 - LRB103 26023 HLH 52377 b
449	449	1 corporation, limited liability company, society, association,
450	450	2 foundation, or institution that is determined by the
451	451	3 Department to be organized and operated exclusively for
452	452	4 educational purposes. For purposes of this exemption, "a
453	453	5 corporation, limited liability company, society, association,
454	454	6 foundation, or institution organized and operated exclusively
455	455	7 for educational purposes" means all tax-supported public
456	456	8 schools, private schools that offer systematic instruction in
457	457	9 useful branches of learning by methods common to public
458	458	10 schools and that compare favorably in their scope and
459	459	11 intensity with the course of study presented in tax-supported
460	460	12 schools, and vocational or technical schools or institutes
461	461	13 organized and operated exclusively to provide a course of
462	462	14 study of not less than 6 weeks duration and designed to prepare
463	463	15 individuals to follow a trade or to pursue a manual,
464	464	16 technical, mechanical, industrial, business, or commercial
465	465	17 occupation.
466	466	18 (28) Beginning January 1, 2000, personal property,
467	467	19 including food, purchased through fundraising events for the
468	468	20 benefit of a public or private elementary or secondary school,
469	469	21 a group of those schools, or one or more school districts if
470	470	22 the events are sponsored by an entity recognized by the school
471	471	23 district that consists primarily of volunteers and includes
472	472	24 parents and teachers of the school children. This paragraph
473	473	25 does not apply to fundraising events (i) for the benefit of
474	474	26 private home instruction or (ii) for which the fundraising
475	475
476	476
477	477
478	478
479	479
480	480	SB2188 - 12 - LRB103 26023 HLH 52377 b
481	481
482	482
483	483	SB2188- 13 -LRB103 26023 HLH 52377 b SB2188 - 13 - LRB103 26023 HLH 52377 b
484	484	SB2188 - 13 - LRB103 26023 HLH 52377 b
485	485	1 entity purchases the personal property sold at the events from
486	486	2 another individual or entity that sold the property for the
487	487	3 purpose of resale by the fundraising entity and that profits
488	488	4 from the sale to the fundraising entity. This paragraph is
489	489	5 exempt from the provisions of Section 3-90.
490	490	6 (29) Beginning January 1, 2000 and through December 31,
491	491	7 2001, new or used automatic vending machines that prepare and
492	492	8 serve hot food and beverages, including coffee, soup, and
493	493	9 other items, and replacement parts for these machines.
494	494	10 Beginning January 1, 2002 and through June 30, 2003, machines
495	495	11 and parts for machines used in commercial, coin-operated
496	496	12 amusement and vending business if a use or occupation tax is
497	497	13 paid on the gross receipts derived from the use of the
498	498	14 commercial, coin-operated amusement and vending machines. This
499	499	15 paragraph is exempt from the provisions of Section 3-90.
500	500	16 (30) Beginning January 1, 2001 and through June 30, 2016,
501	501	17 food for human consumption that is to be consumed off the
502	502	18 premises where it is sold (other than alcoholic beverages,
503	503	19 soft drinks, and food that has been prepared for immediate
504	504	20 consumption) and prescription and nonprescription medicines,
505	505	21 drugs, medical appliances, and insulin, urine testing
506	506	22 materials, syringes, and needles used by diabetics, for human
507	507	23 use, when purchased for use by a person receiving medical
508	508	24 assistance under Article V of the Illinois Public Aid Code who
509	509	25 resides in a licensed long-term care facility, as defined in
510	510	26 the Nursing Home Care Act, or in a licensed facility as defined
511	511
512	512
513	513
514	514
515	515
516	516	SB2188 - 13 - LRB103 26023 HLH 52377 b
517	517
518	518
519	519	SB2188- 14 -LRB103 26023 HLH 52377 b SB2188 - 14 - LRB103 26023 HLH 52377 b
520	520	SB2188 - 14 - LRB103 26023 HLH 52377 b
521	521	1 in the ID/DD Community Care Act, the MC/DD Act, or the
522	522	2 Specialized Mental Health Rehabilitation Act of 2013.
523	523	3 (31) Beginning on August 2, 2001 (the effective date of
524	524	4 Public Act 92-227), computers and communications equipment
525	525	5 utilized for any hospital purpose and equipment used in the
526	526	6 diagnosis, analysis, or treatment of hospital patients
527	527	7 purchased by a lessor who leases the equipment, under a lease
528	528	8 of one year or longer executed or in effect at the time the
529	529	9 lessor would otherwise be subject to the tax imposed by this
530	530	10 Act, to a hospital that has been issued an active tax exemption
531	531	11 identification number by the Department under Section 1g of
532	532	12 the Retailers' Occupation Tax Act. If the equipment is leased
533	533	13 in a manner that does not qualify for this exemption or is used
534	534	14 in any other nonexempt manner, the lessor shall be liable for
535	535	15 the tax imposed under this Act or the Service Use Tax Act, as
536	536	16 the case may be, based on the fair market value of the property
537	537	17 at the time the nonqualifying use occurs. No lessor shall
538	538	18 collect or attempt to collect an amount (however designated)
539	539	19 that purports to reimburse that lessor for the tax imposed by
540	540	20 this Act or the Service Use Tax Act, as the case may be, if the
541	541	21 tax has not been paid by the lessor. If a lessor improperly
542	542	22 collects any such amount from the lessee, the lessee shall
543	543	23 have a legal right to claim a refund of that amount from the
544	544	24 lessor. If, however, that amount is not refunded to the lessee
545	545	25 for any reason, the lessor is liable to pay that amount to the
546	546	26 Department. This paragraph is exempt from the provisions of
547	547
548	548
549	549
550	550
551	551
552	552	SB2188 - 14 - LRB103 26023 HLH 52377 b
553	553
554	554
555	555	SB2188- 15 -LRB103 26023 HLH 52377 b SB2188 - 15 - LRB103 26023 HLH 52377 b
556	556	SB2188 - 15 - LRB103 26023 HLH 52377 b
557	557	1 Section 3-90.
558	558	2 (32) Beginning on August 2, 2001 (the effective date of
559	559	3 Public Act 92-227), personal property purchased by a lessor
560	560	4 who leases the property, under a lease of one year or longer
561	561	5 executed or in effect at the time the lessor would otherwise be
562	562	6 subject to the tax imposed by this Act, to a governmental body
563	563	7 that has been issued an active sales tax exemption
564	564	8 identification number by the Department under Section 1g of
565	565	9 the Retailers' Occupation Tax Act. If the property is leased
566	566	10 in a manner that does not qualify for this exemption or used in
567	567	11 any other nonexempt manner, the lessor shall be liable for the
568	568	12 tax imposed under this Act or the Service Use Tax Act, as the
569	569	13 case may be, based on the fair market value of the property at
570	570	14 the time the nonqualifying use occurs. No lessor shall collect
571	571	15 or attempt to collect an amount (however designated) that
572	572	16 purports to reimburse that lessor for the tax imposed by this
573	573	17 Act or the Service Use Tax Act, as the case may be, if the tax
574	574	18 has not been paid by the lessor. If a lessor improperly
575	575	19 collects any such amount from the lessee, the lessee shall
576	576	20 have a legal right to claim a refund of that amount from the
577	577	21 lessor. If, however, that amount is not refunded to the lessee
578	578	22 for any reason, the lessor is liable to pay that amount to the
579	579	23 Department. This paragraph is exempt from the provisions of
580	580	24 Section 3-90.
581	581	25 (33) On and after July 1, 2003 and through June 30, 2004,
582	582	26 the use in this State of motor vehicles of the second division
583	583
584	584
585	585
586	586
587	587
588	588	SB2188 - 15 - LRB103 26023 HLH 52377 b
589	589
590	590
591	591	SB2188- 16 -LRB103 26023 HLH 52377 b SB2188 - 16 - LRB103 26023 HLH 52377 b
592	592	SB2188 - 16 - LRB103 26023 HLH 52377 b
593	593	1 with a gross vehicle weight in excess of 8,000 pounds and that
594	594	2 are subject to the commercial distribution fee imposed under
595	595	3 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
596	596	4 July 1, 2004 and through June 30, 2005, the use in this State
597	597	5 of motor vehicles of the second division: (i) with a gross
598	598	6 vehicle weight rating in excess of 8,000 pounds; (ii) that are
599	599	7 subject to the commercial distribution fee imposed under
600	600	8 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
601	601	9 are primarily used for commercial purposes. Through June 30,
602	602	10 2005, this exemption applies to repair and replacement parts
603	603	11 added after the initial purchase of such a motor vehicle if
604	604	12 that motor vehicle is used in a manner that would qualify for
605	605	13 the rolling stock exemption otherwise provided for in this
606	606	14 Act. For purposes of this paragraph, the term "used for
607	607	15 commercial purposes" means the transportation of persons or
608	608	16 property in furtherance of any commercial or industrial
609	609	17 enterprise, whether for-hire or not.
610	610	18 (34) Beginning January 1, 2008, tangible personal property
611	611	19 used in the construction or maintenance of a community water
612	612	20 supply, as defined under Section 3.145 of the Environmental
613	613	21 Protection Act, that is operated by a not-for-profit
614	614	22 corporation that holds a valid water supply permit issued
615	615	23 under Title IV of the Environmental Protection Act. This
616	616	24 paragraph is exempt from the provisions of Section 3-90.
617	617	25 (35) Beginning January 1, 2010 and continuing through
618	618	26 December 31, 2024, materials, parts, equipment, components,
619	619
620	620
621	621
622	622
623	623
624	624	SB2188 - 16 - LRB103 26023 HLH 52377 b
625	625
626	626
627	627	SB2188- 17 -LRB103 26023 HLH 52377 b SB2188 - 17 - LRB103 26023 HLH 52377 b
628	628	SB2188 - 17 - LRB103 26023 HLH 52377 b
629	629	1 and furnishings incorporated into or upon an aircraft as part
630	630	2 of the modification, refurbishment, completion, replacement,
631	631	3 repair, or maintenance of the aircraft. This exemption
632	632	4 includes consumable supplies used in the modification,
633	633	5 refurbishment, completion, replacement, repair, and
634	634	6 maintenance of aircraft, but excludes any materials, parts,
635	635	7 equipment, components, and consumable supplies used in the
636	636	8 modification, replacement, repair, and maintenance of aircraft
637	637	9 engines or power plants, whether such engines or power plants
638	638	10 are installed or uninstalled upon any such aircraft.
639	639	11 "Consumable supplies" include, but are not limited to,
640	640	12 adhesive, tape, sandpaper, general purpose lubricants,
641	641	13 cleaning solution, latex gloves, and protective films. This
642	642	14 exemption applies only to the use of qualifying tangible
643	643	15 personal property by persons who modify, refurbish, complete,
644	644	16 repair, replace, or maintain aircraft and who (i) hold an Air
645	645	17 Agency Certificate and are empowered to operate an approved
646	646	18 repair station by the Federal Aviation Administration, (ii)
647	647	19 have a Class IV Rating, and (iii) conduct operations in
648	648	20 accordance with Part 145 of the Federal Aviation Regulations.
649	649	21 The exemption does not include aircraft operated by a
650	650	22 commercial air carrier providing scheduled passenger air
651	651	23 service pursuant to authority issued under Part 121 or Part
652	652	24 129 of the Federal Aviation Regulations. The changes made to
653	653	25 this paragraph (35) by Public Act 98-534 are declarative of
654	654	26 existing law. It is the intent of the General Assembly that the
655	655
656	656
657	657
658	658
659	659
660	660	SB2188 - 17 - LRB103 26023 HLH 52377 b
661	661
662	662
663	663	SB2188- 18 -LRB103 26023 HLH 52377 b SB2188 - 18 - LRB103 26023 HLH 52377 b
664	664	SB2188 - 18 - LRB103 26023 HLH 52377 b
665	665	1 exemption under this paragraph (35) applies continuously from
666	666	2 January 1, 2010 through December 31, 2024; however, no claim
667	667	3 for credit or refund is allowed for taxes paid as a result of
668	668	4 the disallowance of this exemption on or after January 1, 2015
669	669	5 and prior to February 5, 2020 (the effective date of Public Act
670	670	6 101-629) this amendatory Act of the 101st General Assembly.
671	671	7 (36) Tangible personal property purchased by a
672	672	8 public-facilities corporation, as described in Section
673	673	9 11-65-10 of the Illinois Municipal Code, for purposes of
674	674	10 constructing or furnishing a municipal convention hall, but
675	675	11 only if the legal title to the municipal convention hall is
676	676	12 transferred to the municipality without any further
677	677	13 consideration by or on behalf of the municipality at the time
678	678	14 of the completion of the municipal convention hall or upon the
679	679	15 retirement or redemption of any bonds or other debt
680	680	16 instruments issued by the public-facilities corporation in
681	681	17 connection with the development of the municipal convention
682	682	18 hall. This exemption includes existing public-facilities
683	683	19 corporations as provided in Section 11-65-25 of the Illinois
684	684	20 Municipal Code. This paragraph is exempt from the provisions
685	685	21 of Section 3-90.
686	686	22 (37) Beginning January 1, 2017 and through December 31,
687	687	23 2026, menstrual pads, tampons, and menstrual cups.
688	688	24 (38) Merchandise that is subject to the Rental Purchase
689	689	25 Agreement Occupation and Use Tax. The purchaser must certify
690	690	26 that the item is purchased to be rented subject to a rental
691	691
692	692
693	693
694	694
695	695
696	696	SB2188 - 18 - LRB103 26023 HLH 52377 b
697	697
698	698
699	699	SB2188- 19 -LRB103 26023 HLH 52377 b SB2188 - 19 - LRB103 26023 HLH 52377 b
700	700	SB2188 - 19 - LRB103 26023 HLH 52377 b
701	701	1 purchase agreement, as defined in the Rental Purchase
702	702	2 Agreement Act, and provide proof of registration under the
703	703	3 Rental Purchase Agreement Occupation and Use Tax Act. This
704	704	4 paragraph is exempt from the provisions of Section 3-90.
705	705	5 (39) Tangible personal property purchased by a purchaser
706	706	6 who is exempt from the tax imposed by this Act by operation of
707	707	7 federal law. This paragraph is exempt from the provisions of
708	708	8 Section 3-90.
709	709	9 (40) Qualified tangible personal property used in the
710	710	10 construction or operation of a data center that has been
711	711	11 granted a certificate of exemption by the Department of
712	712	12 Commerce and Economic Opportunity, whether that tangible
713	713	13 personal property is purchased by the owner, operator, or
714	714	14 tenant of the data center or by a contractor or subcontractor
715	715	15 of the owner, operator, or tenant. Data centers that would
716	716	16 have qualified for a certificate of exemption prior to January
717	717	17 1, 2020 had Public Act 101-31 been in effect may apply for and
718	718	18 obtain an exemption for subsequent purchases of computer
719	719	19 equipment or enabling software purchased or leased to upgrade,
720	720	20 supplement, or replace computer equipment or enabling software
721	721	21 purchased or leased in the original investment that would have
722	722	22 qualified.
723	723	23 The Department of Commerce and Economic Opportunity shall
724	724	24 grant a certificate of exemption under this item (40) to
725	725	25 qualified data centers as defined by Section 605-1025 of the
726	726	26 Department of Commerce and Economic Opportunity Law of the
727	727
728	728
729	729
730	730
731	731
732	732	SB2188 - 19 - LRB103 26023 HLH 52377 b
733	733
734	734
735	735	SB2188- 20 -LRB103 26023 HLH 52377 b SB2188 - 20 - LRB103 26023 HLH 52377 b
736	736	SB2188 - 20 - LRB103 26023 HLH 52377 b
737	737	1 Civil Administrative Code of Illinois.
738	738	2 For the purposes of this item (40):
739	739	3 "Data center" means a building or a series of
740	740	4 buildings rehabilitated or constructed to house working
741	741	5 servers in one physical location or multiple sites within
742	742	6 the State of Illinois.
743	743	7 "Qualified tangible personal property" means:
744	744	8 electrical systems and equipment; climate control and
745	745	9 chilling equipment and systems; mechanical systems and
746	746	10 equipment; monitoring and secure systems; emergency
747	747	11 generators; hardware; computers; servers; data storage
748	748	12 devices; network connectivity equipment; racks; cabinets;
749	749	13 telecommunications cabling infrastructure; raised floor
750	750	14 systems; peripheral components or systems; software;
751	751	15 mechanical, electrical, or plumbing systems; battery
752	752	16 systems; cooling systems and towers; temperature control
753	753	17 systems; other cabling; and other data center
754	754	18 infrastructure equipment and systems necessary to operate
755	755	19 qualified tangible personal property, including fixtures;
756	756	20 and component parts of any of the foregoing, including
757	757	21 installation, maintenance, repair, refurbishment, and
758	758	22 replacement of qualified tangible personal property to
759	759	23 generate, transform, transmit, distribute, or manage
760	760	24 electricity necessary to operate qualified tangible
761	761	25 personal property; and all other tangible personal
762	762	26 property that is essential to the operations of a computer
763	763
764	764
765	765
766	766
767	767
768	768	SB2188 - 20 - LRB103 26023 HLH 52377 b
769	769
770	770
771	771	SB2188- 21 -LRB103 26023 HLH 52377 b SB2188 - 21 - LRB103 26023 HLH 52377 b
772	772	SB2188 - 21 - LRB103 26023 HLH 52377 b
773	773	1 data center. The term "qualified tangible personal
774	774	2 property" also includes building materials physically
775	775	3 incorporated in to the qualifying data center. To document
776	776	4 the exemption allowed under this Section, the retailer
777	777	5 must obtain from the purchaser a copy of the certificate
778	778	6 of eligibility issued by the Department of Commerce and
779	779	7 Economic Opportunity.
780	780	8 This item (40) is exempt from the provisions of Section
781	781	9 3-90.
782	782	10 (41) Beginning July 1, 2022, breast pumps, breast pump
783	783	11 collection and storage supplies, and breast pump kits. This
784	784	12 item (41) is exempt from the provisions of Section 3-90. As
785	785	13 used in this item (41):
786	786	14 "Breast pump" means an electrically controlled or
787	787	15 manually controlled pump device designed or marketed to be
788	788	16 used to express milk from a human breast during lactation,
789	789	17 including the pump device and any battery, AC adapter, or
790	790	18 other power supply unit that is used to power the pump
791	791	19 device and is packaged and sold with the pump device at the
792	792	20 time of sale.
793	793	21 "Breast pump collection and storage supplies" means
794	794	22 items of tangible personal property designed or marketed
795	795	23 to be used in conjunction with a breast pump to collect
796	796	24 milk expressed from a human breast and to store collected
797	797	25 milk until it is ready for consumption.
798	798	26 "Breast pump collection and storage supplies"
799	799
800	800
801	801
802	802
803	803
804	804	SB2188 - 21 - LRB103 26023 HLH 52377 b
805	805
806	806
807	807	SB2188- 22 -LRB103 26023 HLH 52377 b SB2188 - 22 - LRB103 26023 HLH 52377 b
808	808	SB2188 - 22 - LRB103 26023 HLH 52377 b
809	809	1 includes, but is not limited to: breast shields and breast
810	810	2 shield connectors; breast pump tubes and tubing adapters;
811	811	3 breast pump valves and membranes; backflow protectors and
812	812	4 backflow protector adaptors; bottles and bottle caps
813	813	5 specific to the operation of the breast pump; and breast
814	814	6 milk storage bags.
815	815	7 "Breast pump collection and storage supplies" does not
816	816	8 include: (1) bottles and bottle caps not specific to the
817	817	9 operation of the breast pump; (2) breast pump travel bags
818	818	10 and other similar carrying accessories, including ice
819	819	11 packs, labels, and other similar products; (3) breast pump
820	820	12 cleaning supplies; (4) nursing bras, bra pads, breast
821	821	13 shells, and other similar products; and (5) creams,
822	822	14 ointments, and other similar products that relieve
823	823	15 breastfeeding-related symptoms or conditions of the
824	824	16 breasts or nipples, unless sold as part of a breast pump
825	825	17 kit that is pre-packaged by the breast pump manufacturer
826	826	18 or distributor.
827	827	19 "Breast pump kit" means a kit that: (1) contains no
828	828	20 more than a breast pump, breast pump collection and
829	829	21 storage supplies, a rechargeable battery for operating the
830	830	22 breast pump, a breastmilk cooler, bottle stands, ice
831	831	23 packs, and a breast pump carrying case; and (2) is
832	832	24 pre-packaged as a breast pump kit by the breast pump
833	833	25 manufacturer or distributor.
834	834	26 (42) (41) Tangible personal property sold by or on behalf
835	835
836	836
837	837
838	838
839	839
840	840	SB2188 - 22 - LRB103 26023 HLH 52377 b
841	841
842	842
843	843	SB2188- 23 -LRB103 26023 HLH 52377 b SB2188 - 23 - LRB103 26023 HLH 52377 b
844	844	SB2188 - 23 - LRB103 26023 HLH 52377 b
845	845	1 of the State Treasurer pursuant to the Revised Uniform
846	846	2 Unclaimed Property Act. This item (42) (41) is exempt from the
847	847	3 provisions of Section 3-90.
848	848	4 (43) Beginning July 1, 2023, prescription medicines and
849	849	5 medical devices (including, but not limited to, products
850	850	6 classified as Class III medical devices by the United States
851	851	7 Food and Drug Administration that are used for cancer
852	852	8 treatment pursuant to a prescription, as well as any
853	853	9 accessories and components related to those devices). This
854	854	10 item (43) is exempt from the provisions of Section 3-90.
855	855	11 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
856	856	12 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
857	857	13 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
858	858	14 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
859	859	15 eff. 5-27-22; revised 8-1-22.)
860	860	16 (35 ILCS 105/3-10)
861	861	17 Sec. 3-10. Rate of tax. Unless otherwise provided in this
862	862	18 Section, the tax imposed by this Act is at the rate of 6.25% of
863	863	19 either the selling price or the fair market value, if any, of
864	864	20 the tangible personal property. In all cases where property
865	865	21 functionally used or consumed is the same as the property that
866	866	22 was purchased at retail, then the tax is imposed on the selling
867	867	23 price of the property. In all cases where property
868	868	24 functionally used or consumed is a by-product or waste product
869	869	25 that has been refined, manufactured, or produced from property
870	870
871	871
872	872
873	873
874	874
875	875	SB2188 - 23 - LRB103 26023 HLH 52377 b
876	876
877	877
878	878	SB2188- 24 -LRB103 26023 HLH 52377 b SB2188 - 24 - LRB103 26023 HLH 52377 b
879	879	SB2188 - 24 - LRB103 26023 HLH 52377 b
880	880	1 purchased at retail, then the tax is imposed on the lower of
881	881	2 the fair market value, if any, of the specific property so used
882	882	3 in this State or on the selling price of the property purchased
883	883	4 at retail. For purposes of this Section "fair market value"
884	884	5 means the price at which property would change hands between a
885	885	6 willing buyer and a willing seller, neither being under any
886	886	7 compulsion to buy or sell and both having reasonable knowledge
887	887	8 of the relevant facts. The fair market value shall be
888	888	9 established by Illinois sales by the taxpayer of the same
889	889	10 property as that functionally used or consumed, or if there
890	890	11 are no such sales by the taxpayer, then comparable sales or
891	891	12 purchases of property of like kind and character in Illinois.
892	892	13 Beginning on July 1, 2000 and through December 31, 2000,
893	893	14 with respect to motor fuel, as defined in Section 1.1 of the
894	894	15 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
895	895	16 the Use Tax Act, the tax is imposed at the rate of 1.25%.
896	896	17 Beginning on August 6, 2010 through August 15, 2010, and
897	897	18 beginning again on August 5, 2022 through August 14, 2022,
898	898	19 with respect to sales tax holiday items as defined in Section
899	899	20 3-6 of this Act, the tax is imposed at the rate of 1.25%.
900	900	21 With respect to gasohol, the tax imposed by this Act
901	901	22 applies to (i) 70% of the proceeds of sales made on or after
902	902	23 January 1, 1990, and before July 1, 2003, (ii) 80% of the
903	903	24 proceeds of sales made on or after July 1, 2003 and on or
904	904	25 before July 1, 2017, and (iii) 100% of the proceeds of sales
905	905	26 made thereafter. If, at any time, however, the tax under this
906	906
907	907
908	908
909	909
910	910
911	911	SB2188 - 24 - LRB103 26023 HLH 52377 b
912	912
913	913
914	914	SB2188- 25 -LRB103 26023 HLH 52377 b SB2188 - 25 - LRB103 26023 HLH 52377 b
915	915	SB2188 - 25 - LRB103 26023 HLH 52377 b
916	916	1 Act on sales of gasohol is imposed at the rate of 1.25%, then
917	917	2 the tax imposed by this Act applies to 100% of the proceeds of
918	918	3 sales of gasohol made during that time.
919	919	4 With respect to majority blended ethanol fuel, the tax
920	920	5 imposed by this Act does not apply to the proceeds of sales
921	921	6 made on or after July 1, 2003 and on or before December 31,
922	922	7 2023 but applies to 100% of the proceeds of sales made
923	923	8 thereafter.
924	924	9 With respect to biodiesel blends with no less than 1% and
925	925	10 no more than 10% biodiesel, the tax imposed by this Act applies
926	926	11 to (i) 80% of the proceeds of sales made on or after July 1,
927	927	12 2003 and on or before December 31, 2018 and (ii) 100% of the
928	928	13 proceeds of sales made after December 31, 2018 and before
929	929	14 January 1, 2024. On and after January 1, 2024 and on or before
930	930	15 December 31, 2030, the taxation of biodiesel, renewable
931	931	16 diesel, and biodiesel blends shall be as provided in Section
932	932	17 3-5.1. If, at any time, however, the tax under this Act on
933	933	18 sales of biodiesel blends with no less than 1% and no more than
934	934	19 10% biodiesel is imposed at the rate of 1.25%, then the tax
935	935	20 imposed by this Act applies to 100% of the proceeds of sales of
936	936	21 biodiesel blends with no less than 1% and no more than 10%
937	937	22 biodiesel made during that time.
938	938	23 With respect to biodiesel and biodiesel blends with more
939	939	24 than 10% but no more than 99% biodiesel, the tax imposed by
940	940	25 this Act does not apply to the proceeds of sales made on or
941	941	26 after July 1, 2003 and on or before December 31, 2023. On and
942	942
943	943
944	944
945	945
946	946
947	947	SB2188 - 25 - LRB103 26023 HLH 52377 b
948	948
949	949
950	950	SB2188- 26 -LRB103 26023 HLH 52377 b SB2188 - 26 - LRB103 26023 HLH 52377 b
951	951	SB2188 - 26 - LRB103 26023 HLH 52377 b
952	952	1 after January 1, 2024 and on or before December 31, 2030, the
953	953	2 taxation of biodiesel, renewable diesel, and biodiesel blends
954	954	3 shall be as provided in Section 3-5.1.
955	955	4 Until July 1, 2022 and beginning again on July 1, 2023,
956	956	5 with respect to food for human consumption that is to be
957	957	6 consumed off the premises where it is sold (other than
958	958	7 alcoholic beverages, food consisting of or infused with adult
959	959	8 use cannabis, soft drinks, and food that has been prepared for
960	960	9 immediate consumption), the tax is imposed at the rate of 1%.
961	961	10 Beginning on July 1, 2022 and until July 1, 2023, with respect
962	962	11 to food for human consumption that is to be consumed off the
963	963	12 premises where it is sold (other than alcoholic beverages,
964	964	13 food consisting of or infused with adult use cannabis, soft
965	965	14 drinks, and food that has been prepared for immediate
966	966	15 consumption), the tax is imposed at the rate of 0%.
967	967	16 With respect to prescription and nonprescription medicines
968	968	17 and drugs , drugs, medical appliances that are not exempt
969	969	18 under paragraph (43) of Section 3-5, products classified as
970	970	19 Class III medical devices by the United States Food and Drug
971	971	20 Administration that are used for cancer treatment pursuant to
972	972	21 a prescription, as well as any accessories and components
973	973	22 related to those devices, modifications to a motor vehicle for
974	974	23 the purpose of rendering it usable by a person with a
975	975	24 disability, and insulin, blood sugar testing materials,
976	976	25 syringes, and needles used by human diabetics, the tax is
977	977	26 imposed at the rate of 1%. For the purposes of this Section,
978	978
979	979
980	980
981	981
982	982
983	983	SB2188 - 26 - LRB103 26023 HLH 52377 b
984	984
985	985
986	986	SB2188- 27 -LRB103 26023 HLH 52377 b SB2188 - 27 - LRB103 26023 HLH 52377 b
987	987	SB2188 - 27 - LRB103 26023 HLH 52377 b
988	988	1 until September 1, 2009: the term "soft drinks" means any
989	989	2 complete, finished, ready-to-use, non-alcoholic drink, whether
990	990	3 carbonated or not, including, but not limited to, soda water,
991	991	4 cola, fruit juice, vegetable juice, carbonated water, and all
992	992	5 other preparations commonly known as soft drinks of whatever
993	993	6 kind or description that are contained in any closed or sealed
994	994	7 bottle, can, carton, or container, regardless of size; but
995	995	8 "soft drinks" does not include coffee, tea, non-carbonated
996	996	9 water, infant formula, milk or milk products as defined in the
997	997	10 Grade A Pasteurized Milk and Milk Products Act, or drinks
998	998	11 containing 50% or more natural fruit or vegetable juice.
999	999	12 Notwithstanding any other provisions of this Act,
1000	1000	13 beginning September 1, 2009, "soft drinks" means non-alcoholic
1001	1001	14 beverages that contain natural or artificial sweeteners. "Soft
1002	1002	15 drinks" does do not include beverages that contain milk or
1003	1003	16 milk products, soy, rice or similar milk substitutes, or
1004	1004	17 greater than 50% of vegetable or fruit juice by volume.
1005	1005	18 Until August 1, 2009, and notwithstanding any other
1006	1006	19 provisions of this Act, "food for human consumption that is to
1007	1007	20 be consumed off the premises where it is sold" includes all
1008	1008	21 food sold through a vending machine, except soft drinks and
1009	1009	22 food products that are dispensed hot from a vending machine,
1010	1010	23 regardless of the location of the vending machine. Beginning
1011	1011	24 August 1, 2009, and notwithstanding any other provisions of
1012	1012	25 this Act, "food for human consumption that is to be consumed
1013	1013	26 off the premises where it is sold" includes all food sold
1014	1014
1015	1015
1016	1016
1017	1017
1018	1018
1019	1019	SB2188 - 27 - LRB103 26023 HLH 52377 b
1020	1020
1021	1021
1022	1022	SB2188- 28 -LRB103 26023 HLH 52377 b SB2188 - 28 - LRB103 26023 HLH 52377 b
1023	1023	SB2188 - 28 - LRB103 26023 HLH 52377 b
1024	1024	1 through a vending machine, except soft drinks, candy, and food
1025	1025	2 products that are dispensed hot from a vending machine,
1026	1026	3 regardless of the location of the vending machine.
1027	1027	4 Notwithstanding any other provisions of this Act,
1028	1028	5 beginning September 1, 2009, "food for human consumption that
1029	1029	6 is to be consumed off the premises where it is sold" does not
1030	1030	7 include candy. For purposes of this Section, "candy" means a
1031	1031	8 preparation of sugar, honey, or other natural or artificial
1032	1032	9 sweeteners in combination with chocolate, fruits, nuts or
1033	1033	10 other ingredients or flavorings in the form of bars, drops, or
1034	1034	11 pieces. "Candy" does not include any preparation that contains
1035	1035	12 flour or requires refrigeration.
1036	1036	13 Notwithstanding any other provisions of this Act,
1037	1037	14 beginning September 1, 2009, "nonprescription medicines and
1038	1038	15 drugs" does not include grooming and hygiene products. For
1039	1039	16 purposes of this Section, "grooming and hygiene products"
1040	1040	17 includes, but is not limited to, soaps and cleaning solutions,
1041	1041	18 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1042	1042	19 lotions and screens, unless those products are available by
1043	1043	20 prescription only, regardless of whether the products meet the
1044	1044	21 definition of "over-the-counter-drugs". For the purposes of
1045	1045	22 this paragraph, "over-the-counter-drug" means a drug for human
1046	1046	23 use that contains a label that identifies the product as a drug
1047	1047	24 as required by 21 CFR C.F.R. 201.66. The
1048	1048	25 "over-the-counter-drug" label includes:
1049	1049	26 (A) a A "Drug Facts" panel; or
1050	1050
1051	1051
1052	1052
1053	1053
1054	1054
1055	1055	SB2188 - 28 - LRB103 26023 HLH 52377 b
1056	1056
1057	1057
1058	1058	SB2188- 29 -LRB103 26023 HLH 52377 b SB2188 - 29 - LRB103 26023 HLH 52377 b
1059	1059	SB2188 - 29 - LRB103 26023 HLH 52377 b
1060	1060	1 (B) a A statement of the "active ingredient(s)" with a
1061	1061	2 list of those ingredients contained in the compound,
1062	1062	3 substance or preparation.
1063	1063	4 Beginning on January 1, 2014 (the effective date of Public
1064	1064	5 Act 98-122) this amendatory Act of the 98th General Assembly,
1065	1065	6 "prescription and nonprescription medicines and drugs"
1066	1066	7 includes medical cannabis purchased from a registered
1067	1067	8 dispensing organization under the Compassionate Use of Medical
1068	1068	9 Cannabis Program Act.
1069	1069	10 As used in this Section, "adult use cannabis" means
1070	1070	11 cannabis subject to tax under the Cannabis Cultivation
1071	1071	12 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1072	1072	13 and does not include cannabis subject to tax under the
1073	1073	14 Compassionate Use of Medical Cannabis Program Act.
1074	1074	15 If the property that is purchased at retail from a
1075	1075	16 retailer is acquired outside Illinois and used outside
1076	1076	17 Illinois before being brought to Illinois for use here and is
1077	1077	18 taxable under this Act, the "selling price" on which the tax is
1078	1078	19 computed shall be reduced by an amount that represents a
1079	1079	20 reasonable allowance for depreciation for the period of prior
1080	1080	21 out-of-state use.
1081	1081	22 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1082	1082	23 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
1083	1083	24 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
1084	1084	25 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
1085	1085	26 5-27-22.)
1086	1086
1087	1087
1088	1088
1089	1089
1090	1090
1091	1091	SB2188 - 29 - LRB103 26023 HLH 52377 b
1092	1092
1093	1093
1094	1094	SB2188- 30 -LRB103 26023 HLH 52377 b SB2188 - 30 - LRB103 26023 HLH 52377 b
1095	1095	SB2188 - 30 - LRB103 26023 HLH 52377 b
1096	1096	1 Section 10. The Service Use Tax Act is amended by changing
1097	1097	2 Sections 3-5 and 3-10 as follows:
1098	1098	3 (35 ILCS 110/3-5)
1099	1099	4 Sec. 3-5. Exemptions. Use of the following tangible
1100	1100	5 personal property is exempt from the tax imposed by this Act:
1101	1101	6 (1) Personal property purchased from a corporation,
1102	1102	7 society, association, foundation, institution, or
1103	1103	8 organization, other than a limited liability company, that is
1104	1104	9 organized and operated as a not-for-profit service enterprise
1105	1105	10 for the benefit of persons 65 years of age or older if the
1106	1106	11 personal property was not purchased by the enterprise for the
1107	1107	12 purpose of resale by the enterprise.
1108	1108	13 (2) Personal property purchased by a non-profit Illinois
1109	1109	14 county fair association for use in conducting, operating, or
1110	1110	15 promoting the county fair.
1111	1111	16 (3) Personal property purchased by a not-for-profit arts
1112	1112	17 or cultural organization that establishes, by proof required
1113	1113	18 by the Department by rule, that it has received an exemption
1114	1114	19 under Section 501(c)(3) of the Internal Revenue Code and that
1115	1115	20 is organized and operated primarily for the presentation or
1116	1116	21 support of arts or cultural programming, activities, or
1117	1117	22 services. These organizations include, but are not limited to,
1118	1118	23 music and dramatic arts organizations such as symphony
1119	1119	24 orchestras and theatrical groups, arts and cultural service
1120	1120
1121	1121
1122	1122
1123	1123
1124	1124
1125	1125	SB2188 - 30 - LRB103 26023 HLH 52377 b
1126	1126
1127	1127
1128	1128	SB2188- 31 -LRB103 26023 HLH 52377 b SB2188 - 31 - LRB103 26023 HLH 52377 b
1129	1129	SB2188 - 31 - LRB103 26023 HLH 52377 b
1130	1130	1 organizations, local arts councils, visual arts organizations,
1131	1131	2 and media arts organizations. On and after July 1, 2001 (the
1132	1132	3 effective date of Public Act 92-35), however, an entity
1133	1133	4 otherwise eligible for this exemption shall not make tax-free
1134	1134	5 purchases unless it has an active identification number issued
1135	1135	6 by the Department.
1136	1136	7 (4) Legal tender, currency, medallions, or gold or silver
1137	1137	8 coinage issued by the State of Illinois, the government of the
1138	1138	9 United States of America, or the government of any foreign
1139	1139	10 country, and bullion.
1140	1140	11 (5) Until July 1, 2003 and beginning again on September 1,
1141	1141	12 2004 through August 30, 2014, graphic arts machinery and
1142	1142	13 equipment, including repair and replacement parts, both new
1143	1143	14 and used, and including that manufactured on special order or
1144	1144	15 purchased for lease, certified by the purchaser to be used
1145	1145	16 primarily for graphic arts production. Equipment includes
1146	1146	17 chemicals or chemicals acting as catalysts but only if the
1147	1147	18 chemicals or chemicals acting as catalysts effect a direct and
1148	1148	19 immediate change upon a graphic arts product. Beginning on
1149	1149	20 July 1, 2017, graphic arts machinery and equipment is included
1150	1150	21 in the manufacturing and assembling machinery and equipment
1151	1151	22 exemption under Section 2 of this Act.
1152	1152	23 (6) Personal property purchased from a teacher-sponsored
1153	1153	24 student organization affiliated with an elementary or
1154	1154	25 secondary school located in Illinois.
1155	1155	26 (7) Farm machinery and equipment, both new and used,
1156	1156
1157	1157
1158	1158
1159	1159
1160	1160
1161	1161	SB2188 - 31 - LRB103 26023 HLH 52377 b
1162	1162
1163	1163
1164	1164	SB2188- 32 -LRB103 26023 HLH 52377 b SB2188 - 32 - LRB103 26023 HLH 52377 b
1165	1165	SB2188 - 32 - LRB103 26023 HLH 52377 b
1166	1166	1 including that manufactured on special order, certified by the
1167	1167	2 purchaser to be used primarily for production agriculture or
1168	1168	3 State or federal agricultural programs, including individual
1169	1169	4 replacement parts for the machinery and equipment, including
1170	1170	5 machinery and equipment purchased for lease, and including
1171	1171	6 implements of husbandry defined in Section 1-130 of the
1172	1172	7 Illinois Vehicle Code, farm machinery and agricultural
1173	1173	8 chemical and fertilizer spreaders, and nurse wagons required
1174	1174	9 to be registered under Section 3-809 of the Illinois Vehicle
1175	1175	10 Code, but excluding other motor vehicles required to be
1176	1176	11 registered under the Illinois Vehicle Code. Horticultural
1177	1177	12 polyhouses or hoop houses used for propagating, growing, or
1178	1178	13 overwintering plants shall be considered farm machinery and
1179	1179	14 equipment under this item (7). Agricultural chemical tender
1180	1180	15 tanks and dry boxes shall include units sold separately from a
1181	1181	16 motor vehicle required to be licensed and units sold mounted
1182	1182	17 on a motor vehicle required to be licensed if the selling price
1183	1183	18 of the tender is separately stated.
1184	1184	19 Farm machinery and equipment shall include precision
1185	1185	20 farming equipment that is installed or purchased to be
1186	1186	21 installed on farm machinery and equipment including, but not
1187	1187	22 limited to, tractors, harvesters, sprayers, planters, seeders,
1188	1188	23 or spreaders. Precision farming equipment includes, but is not
1189	1189	24 limited to, soil testing sensors, computers, monitors,
1190	1190	25 software, global positioning and mapping systems, and other
1191	1191	26 such equipment.
1192	1192
1193	1193
1194	1194
1195	1195
1196	1196
1197	1197	SB2188 - 32 - LRB103 26023 HLH 52377 b
1198	1198
1199	1199
1200	1200	SB2188- 33 -LRB103 26023 HLH 52377 b SB2188 - 33 - LRB103 26023 HLH 52377 b
1201	1201	SB2188 - 33 - LRB103 26023 HLH 52377 b
1202	1202	1 Farm machinery and equipment also includes computers,
1203	1203	2 sensors, software, and related equipment used primarily in the
1204	1204	3 computer-assisted operation of production agriculture
1205	1205	4 facilities, equipment, and activities such as, but not limited
1206	1206	5 to, the collection, monitoring, and correlation of animal and
1207	1207	6 crop data for the purpose of formulating animal diets and
1208	1208	7 agricultural chemicals. This item (7) is exempt from the
1209	1209	8 provisions of Section 3-75.
1210	1210	9 (8) Until June 30, 2013, fuel and petroleum products sold
1211	1211	10 to or used by an air common carrier, certified by the carrier
1212	1212	11 to be used for consumption, shipment, or storage in the
1213	1213	12 conduct of its business as an air common carrier, for a flight
1214	1214	13 destined for or returning from a location or locations outside
1215	1215	14 the United States without regard to previous or subsequent
1216	1216	15 domestic stopovers.
1217	1217	16 Beginning July 1, 2013, fuel and petroleum products sold
1218	1218	17 to or used by an air carrier, certified by the carrier to be
1219	1219	18 used for consumption, shipment, or storage in the conduct of
1220	1220	19 its business as an air common carrier, for a flight that (i) is
1221	1221	20 engaged in foreign trade or is engaged in trade between the
1222	1222	21 United States and any of its possessions and (ii) transports
1223	1223	22 at least one individual or package for hire from the city of
1224	1224	23 origination to the city of final destination on the same
1225	1225	24 aircraft, without regard to a change in the flight number of
1226	1226	25 that aircraft.
1227	1227	26 (9) Proceeds of mandatory service charges separately
1228	1228
1229	1229
1230	1230
1231	1231
1232	1232
1233	1233	SB2188 - 33 - LRB103 26023 HLH 52377 b
1234	1234
1235	1235
1236	1236	SB2188- 34 -LRB103 26023 HLH 52377 b SB2188 - 34 - LRB103 26023 HLH 52377 b
1237	1237	SB2188 - 34 - LRB103 26023 HLH 52377 b
1238	1238	1 stated on customers' bills for the purchase and consumption of
1239	1239	2 food and beverages acquired as an incident to the purchase of a
1240	1240	3 service from a serviceman, to the extent that the proceeds of
1241	1241	4 the service charge are in fact turned over as tips or as a
1242	1242	5 substitute for tips to the employees who participate directly
1243	1243	6 in preparing, serving, hosting or cleaning up the food or
1244	1244	7 beverage function with respect to which the service charge is
1245	1245	8 imposed.
1246	1246	9 (10) Until July 1, 2003, oil field exploration, drilling,
1247	1247	10 and production equipment, including (i) rigs and parts of
1248	1248	11 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1249	1249	12 pipe and tubular goods, including casing and drill strings,
1250	1250	13 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1251	1251	14 lines, (v) any individual replacement part for oil field
1252	1252	15 exploration, drilling, and production equipment, and (vi)
1253	1253	16 machinery and equipment purchased for lease; but excluding
1254	1254	17 motor vehicles required to be registered under the Illinois
1255	1255	18 Vehicle Code.
1256	1256	19 (11) Proceeds from the sale of photoprocessing machinery
1257	1257	20 and equipment, including repair and replacement parts, both
1258	1258	21 new and used, including that manufactured on special order,
1259	1259	22 certified by the purchaser to be used primarily for
1260	1260	23 photoprocessing, and including photoprocessing machinery and
1261	1261	24 equipment purchased for lease.
1262	1262	25 (12) Until July 1, 2028, coal and aggregate exploration,
1263	1263	26 mining, off-highway hauling, processing, maintenance, and
1264	1264
1265	1265
1266	1266
1267	1267
1268	1268
1269	1269	SB2188 - 34 - LRB103 26023 HLH 52377 b
1270	1270
1271	1271
1272	1272	SB2188- 35 -LRB103 26023 HLH 52377 b SB2188 - 35 - LRB103 26023 HLH 52377 b
1273	1273	SB2188 - 35 - LRB103 26023 HLH 52377 b
1274	1274	1 reclamation equipment, including replacement parts and
1275	1275	2 equipment, and including equipment purchased for lease, but
1276	1276	3 excluding motor vehicles required to be registered under the
1277	1277	4 Illinois Vehicle Code. The changes made to this Section by
1278	1278	5 Public Act 97-767 apply on and after July 1, 2003, but no claim
1279	1279	6 for credit or refund is allowed on or after August 16, 2013
1280	1280	7 (the effective date of Public Act 98-456) for such taxes paid
1281	1281	8 during the period beginning July 1, 2003 and ending on August
1282	1282	9 16, 2013 (the effective date of Public Act 98-456).
1283	1283	10 (13) Semen used for artificial insemination of livestock
1284	1284	11 for direct agricultural production.
1285	1285	12 (14) Horses, or interests in horses, registered with and
1286	1286	13 meeting the requirements of any of the Arabian Horse Club
1287	1287	14 Registry of America, Appaloosa Horse Club, American Quarter
1288	1288	15 Horse Association, United States Trotting Association, or
1289	1289	16 Jockey Club, as appropriate, used for purposes of breeding or
1290	1290	17 racing for prizes. This item (14) is exempt from the
1291	1291	18 provisions of Section 3-75, and the exemption provided for
1292	1292	19 under this item (14) applies for all periods beginning May 30,
1293	1293	20 1995, but no claim for credit or refund is allowed on or after
1294	1294	21 January 1, 2008 (the effective date of Public Act 95-88) for
1295	1295	22 such taxes paid during the period beginning May 30, 2000 and
1296	1296	23 ending on January 1, 2008 (the effective date of Public Act
1297	1297	24 95-88).
1298	1298	25 (15) Computers and communications equipment utilized for
1299	1299	26 any hospital purpose and equipment used in the diagnosis,
1300	1300
1301	1301
1302	1302
1303	1303
1304	1304
1305	1305	SB2188 - 35 - LRB103 26023 HLH 52377 b
1306	1306
1307	1307
1308	1308	SB2188- 36 -LRB103 26023 HLH 52377 b SB2188 - 36 - LRB103 26023 HLH 52377 b
1309	1309	SB2188 - 36 - LRB103 26023 HLH 52377 b
1310	1310	1 analysis, or treatment of hospital patients purchased by a
1311	1311	2 lessor who leases the equipment, under a lease of one year or
1312	1312	3 longer executed or in effect at the time the lessor would
1313	1313	4 otherwise be subject to the tax imposed by this Act, to a
1314	1314	5 hospital that has been issued an active tax exemption
1315	1315	6 identification number by the Department under Section 1g of
1316	1316	7 the Retailers' Occupation Tax Act. If the equipment is leased
1317	1317	8 in a manner that does not qualify for this exemption or is used
1318	1318	9 in any other non-exempt manner, the lessor shall be liable for
1319	1319	10 the tax imposed under this Act or the Use Tax Act, as the case
1320	1320	11 may be, based on the fair market value of the property at the
1321	1321	12 time the non-qualifying use occurs. No lessor shall collect or
1322	1322	13 attempt to collect an amount (however designated) that
1323	1323	14 purports to reimburse that lessor for the tax imposed by this
1324	1324	15 Act or the Use Tax Act, as the case may be, if the tax has not
1325	1325	16 been paid by the lessor. If a lessor improperly collects any
1326	1326	17 such amount from the lessee, the lessee shall have a legal
1327	1327	18 right to claim a refund of that amount from the lessor. If,
1328	1328	19 however, that amount is not refunded to the lessee for any
1329	1329	20 reason, the lessor is liable to pay that amount to the
1330	1330	21 Department.
1331	1331	22 (16) Personal property purchased by a lessor who leases
1332	1332	23 the property, under a lease of one year or longer executed or
1333	1333	24 in effect at the time the lessor would otherwise be subject to
1334	1334	25 the tax imposed by this Act, to a governmental body that has
1335	1335	26 been issued an active tax exemption identification number by
1336	1336
1337	1337
1338	1338
1339	1339
1340	1340
1341	1341	SB2188 - 36 - LRB103 26023 HLH 52377 b
1342	1342
1343	1343
1344	1344	SB2188- 37 -LRB103 26023 HLH 52377 b SB2188 - 37 - LRB103 26023 HLH 52377 b
1345	1345	SB2188 - 37 - LRB103 26023 HLH 52377 b
1346	1346	1 the Department under Section 1g of the Retailers' Occupation
1347	1347	2 Tax Act. If the property is leased in a manner that does not
1348	1348	3 qualify for this exemption or is used in any other non-exempt
1349	1349	4 manner, the lessor shall be liable for the tax imposed under
1350	1350	5 this Act or the Use Tax Act, as the case may be, based on the
1351	1351	6 fair market value of the property at the time the
1352	1352	7 non-qualifying use occurs. No lessor shall collect or attempt
1353	1353	8 to collect an amount (however designated) that purports to
1354	1354	9 reimburse that lessor for the tax imposed by this Act or the
1355	1355	10 Use Tax Act, as the case may be, if the tax has not been paid
1356	1356	11 by the lessor. If a lessor improperly collects any such amount
1357	1357	12 from the lessee, the lessee shall have a legal right to claim a
1358	1358	13 refund of that amount from the lessor. If, however, that
1359	1359	14 amount is not refunded to the lessee for any reason, the lessor
1360	1360	15 is liable to pay that amount to the Department.
1361	1361	16 (17) Beginning with taxable years ending on or after
1362	1362	17 December 31, 1995 and ending with taxable years ending on or
1363	1363	18 before December 31, 2004, personal property that is donated
1364	1364	19 for disaster relief to be used in a State or federally declared
1365	1365	20 disaster area in Illinois or bordering Illinois by a
1366	1366	21 manufacturer or retailer that is registered in this State to a
1367	1367	22 corporation, society, association, foundation, or institution
1368	1368	23 that has been issued a sales tax exemption identification
1369	1369	24 number by the Department that assists victims of the disaster
1370	1370	25 who reside within the declared disaster area.
1371	1371	26 (18) Beginning with taxable years ending on or after
1372	1372
1373	1373
1374	1374
1375	1375
1376	1376
1377	1377	SB2188 - 37 - LRB103 26023 HLH 52377 b
1378	1378
1379	1379
1380	1380	SB2188- 38 -LRB103 26023 HLH 52377 b SB2188 - 38 - LRB103 26023 HLH 52377 b
1381	1381	SB2188 - 38 - LRB103 26023 HLH 52377 b
1382	1382	1 December 31, 1995 and ending with taxable years ending on or
1383	1383	2 before December 31, 2004, personal property that is used in
1384	1384	3 the performance of infrastructure repairs in this State,
1385	1385	4 including but not limited to municipal roads and streets,
1386	1386	5 access roads, bridges, sidewalks, waste disposal systems,
1387	1387	6 water and sewer line extensions, water distribution and
1388	1388	7 purification facilities, storm water drainage and retention
1389	1389	8 facilities, and sewage treatment facilities, resulting from a
1390	1390	9 State or federally declared disaster in Illinois or bordering
1391	1391	10 Illinois when such repairs are initiated on facilities located
1392	1392	11 in the declared disaster area within 6 months after the
1393	1393	12 disaster.
1394	1394	13 (19) Beginning July 1, 1999, game or game birds purchased
1395	1395	14 at a "game breeding and hunting preserve area" as that term is
1396	1396	15 used in the Wildlife Code. This paragraph is exempt from the
1397	1397	16 provisions of Section 3-75.
1398	1398	17 (20) A motor vehicle, as that term is defined in Section
1399	1399	18 1-146 of the Illinois Vehicle Code, that is donated to a
1400	1400	19 corporation, limited liability company, society, association,
1401	1401	20 foundation, or institution that is determined by the
1402	1402	21 Department to be organized and operated exclusively for
1403	1403	22 educational purposes. For purposes of this exemption, "a
1404	1404	23 corporation, limited liability company, society, association,
1405	1405	24 foundation, or institution organized and operated exclusively
1406	1406	25 for educational purposes" means all tax-supported public
1407	1407	26 schools, private schools that offer systematic instruction in
1408	1408
1409	1409
1410	1410
1411	1411
1412	1412
1413	1413	SB2188 - 38 - LRB103 26023 HLH 52377 b
1414	1414
1415	1415
1416	1416	SB2188- 39 -LRB103 26023 HLH 52377 b SB2188 - 39 - LRB103 26023 HLH 52377 b
1417	1417	SB2188 - 39 - LRB103 26023 HLH 52377 b
1418	1418	1 useful branches of learning by methods common to public
1419	1419	2 schools and that compare favorably in their scope and
1420	1420	3 intensity with the course of study presented in tax-supported
1421	1421	4 schools, and vocational or technical schools or institutes
1422	1422	5 organized and operated exclusively to provide a course of
1423	1423	6 study of not less than 6 weeks duration and designed to prepare
1424	1424	7 individuals to follow a trade or to pursue a manual,
1425	1425	8 technical, mechanical, industrial, business, or commercial
1426	1426	9 occupation.
1427	1427	10 (21) Beginning January 1, 2000, personal property,
1428	1428	11 including food, purchased through fundraising events for the
1429	1429	12 benefit of a public or private elementary or secondary school,
1430	1430	13 a group of those schools, or one or more school districts if
1431	1431	14 the events are sponsored by an entity recognized by the school
1432	1432	15 district that consists primarily of volunteers and includes
1433	1433	16 parents and teachers of the school children. This paragraph
1434	1434	17 does not apply to fundraising events (i) for the benefit of
1435	1435	18 private home instruction or (ii) for which the fundraising
1436	1436	19 entity purchases the personal property sold at the events from
1437	1437	20 another individual or entity that sold the property for the
1438	1438	21 purpose of resale by the fundraising entity and that profits
1439	1439	22 from the sale to the fundraising entity. This paragraph is
1440	1440	23 exempt from the provisions of Section 3-75.
1441	1441	24 (22) Beginning January 1, 2000 and through December 31,
1442	1442	25 2001, new or used automatic vending machines that prepare and
1443	1443	26 serve hot food and beverages, including coffee, soup, and
1444	1444
1445	1445
1446	1446
1447	1447
1448	1448
1449	1449	SB2188 - 39 - LRB103 26023 HLH 52377 b
1450	1450
1451	1451
1452	1452	SB2188- 40 -LRB103 26023 HLH 52377 b SB2188 - 40 - LRB103 26023 HLH 52377 b
1453	1453	SB2188 - 40 - LRB103 26023 HLH 52377 b
1454	1454	1 other items, and replacement parts for these machines.
1455	1455	2 Beginning January 1, 2002 and through June 30, 2003, machines
1456	1456	3 and parts for machines used in commercial, coin-operated
1457	1457	4 amusement and vending business if a use or occupation tax is
1458	1458	5 paid on the gross receipts derived from the use of the
1459	1459	6 commercial, coin-operated amusement and vending machines. This
1460	1460	7 paragraph is exempt from the provisions of Section 3-75.
1461	1461	8 (23) Beginning August 23, 2001 and through June 30, 2016,
1462	1462	9 food for human consumption that is to be consumed off the
1463	1463	10 premises where it is sold (other than alcoholic beverages,
1464	1464	11 soft drinks, and food that has been prepared for immediate
1465	1465	12 consumption) and prescription and nonprescription medicines,
1466	1466	13 drugs, medical appliances, and insulin, urine testing
1467	1467	14 materials, syringes, and needles used by diabetics, for human
1468	1468	15 use, when purchased for use by a person receiving medical
1469	1469	16 assistance under Article V of the Illinois Public Aid Code who
1470	1470	17 resides in a licensed long-term care facility, as defined in
1471	1471	18 the Nursing Home Care Act, or in a licensed facility as defined
1472	1472	19 in the ID/DD Community Care Act, the MC/DD Act, or the
1473	1473	20 Specialized Mental Health Rehabilitation Act of 2013.
1474	1474	21 (24) Beginning on August 2, 2001 (the effective date of
1475	1475	22 Public Act 92-227), computers and communications equipment
1476	1476	23 utilized for any hospital purpose and equipment used in the
1477	1477	24 diagnosis, analysis, or treatment of hospital patients
1478	1478	25 purchased by a lessor who leases the equipment, under a lease
1479	1479	26 of one year or longer executed or in effect at the time the
1480	1480
1481	1481
1482	1482
1483	1483
1484	1484
1485	1485	SB2188 - 40 - LRB103 26023 HLH 52377 b
1486	1486
1487	1487
1488	1488	SB2188- 41 -LRB103 26023 HLH 52377 b SB2188 - 41 - LRB103 26023 HLH 52377 b
1489	1489	SB2188 - 41 - LRB103 26023 HLH 52377 b
1490	1490	1 lessor would otherwise be subject to the tax imposed by this
1491	1491	2 Act, to a hospital that has been issued an active tax exemption
1492	1492	3 identification number by the Department under Section 1g of
1493	1493	4 the Retailers' Occupation Tax Act. If the equipment is leased
1494	1494	5 in a manner that does not qualify for this exemption or is used
1495	1495	6 in any other nonexempt manner, the lessor shall be liable for
1496	1496	7 the tax imposed under this Act or the Use Tax Act, as the case
1497	1497	8 may be, based on the fair market value of the property at the
1498	1498	9 time the nonqualifying use occurs. No lessor shall collect or
1499	1499	10 attempt to collect an amount (however designated) that
1500	1500	11 purports to reimburse that lessor for the tax imposed by this
1501	1501	12 Act or the Use Tax Act, as the case may be, if the tax has not
1502	1502	13 been paid by the lessor. If a lessor improperly collects any
1503	1503	14 such amount from the lessee, the lessee shall have a legal
1504	1504	15 right to claim a refund of that amount from the lessor. If,
1505	1505	16 however, that amount is not refunded to the lessee for any
1506	1506	17 reason, the lessor is liable to pay that amount to the
1507	1507	18 Department. This paragraph is exempt from the provisions of
1508	1508	19 Section 3-75.
1509	1509	20 (25) Beginning on August 2, 2001 (the effective date of
1510	1510	21 Public Act 92-227), personal property purchased by a lessor
1511	1511	22 who leases the property, under a lease of one year or longer
1512	1512	23 executed or in effect at the time the lessor would otherwise be
1513	1513	24 subject to the tax imposed by this Act, to a governmental body
1514	1514	25 that has been issued an active tax exemption identification
1515	1515	26 number by the Department under Section 1g of the Retailers'
1516	1516
1517	1517
1518	1518
1519	1519
1520	1520
1521	1521	SB2188 - 41 - LRB103 26023 HLH 52377 b
1522	1522
1523	1523
1524	1524	SB2188- 42 -LRB103 26023 HLH 52377 b SB2188 - 42 - LRB103 26023 HLH 52377 b
1525	1525	SB2188 - 42 - LRB103 26023 HLH 52377 b
1526	1526	1 Occupation Tax Act. If the property is leased in a manner that
1527	1527	2 does not qualify for this exemption or is used in any other
1528	1528	3 nonexempt manner, the lessor shall be liable for the tax
1529	1529	4 imposed under this Act or the Use Tax Act, as the case may be,
1530	1530	5 based on the fair market value of the property at the time the
1531	1531	6 nonqualifying use occurs. No lessor shall collect or attempt
1532	1532	7 to collect an amount (however designated) that purports to
1533	1533	8 reimburse that lessor for the tax imposed by this Act or the
1534	1534	9 Use Tax Act, as the case may be, if the tax has not been paid
1535	1535	10 by the lessor. If a lessor improperly collects any such amount
1536	1536	11 from the lessee, the lessee shall have a legal right to claim a
1537	1537	12 refund of that amount from the lessor. If, however, that
1538	1538	13 amount is not refunded to the lessee for any reason, the lessor
1539	1539	14 is liable to pay that amount to the Department. This paragraph
1540	1540	15 is exempt from the provisions of Section 3-75.
1541	1541	16 (26) Beginning January 1, 2008, tangible personal property
1542	1542	17 used in the construction or maintenance of a community water
1543	1543	18 supply, as defined under Section 3.145 of the Environmental
1544	1544	19 Protection Act, that is operated by a not-for-profit
1545	1545	20 corporation that holds a valid water supply permit issued
1546	1546	21 under Title IV of the Environmental Protection Act. This
1547	1547	22 paragraph is exempt from the provisions of Section 3-75.
1548	1548	23 (27) Beginning January 1, 2010 and continuing through
1549	1549	24 December 31, 2024, materials, parts, equipment, components,
1550	1550	25 and furnishings incorporated into or upon an aircraft as part
1551	1551	26 of the modification, refurbishment, completion, replacement,
1552	1552
1553	1553
1554	1554
1555	1555
1556	1556
1557	1557	SB2188 - 42 - LRB103 26023 HLH 52377 b
1558	1558
1559	1559
1560	1560	SB2188- 43 -LRB103 26023 HLH 52377 b SB2188 - 43 - LRB103 26023 HLH 52377 b
1561	1561	SB2188 - 43 - LRB103 26023 HLH 52377 b
1562	1562	1 repair, or maintenance of the aircraft. This exemption
1563	1563	2 includes consumable supplies used in the modification,
1564	1564	3 refurbishment, completion, replacement, repair, and
1565	1565	4 maintenance of aircraft, but excludes any materials, parts,
1566	1566	5 equipment, components, and consumable supplies used in the
1567	1567	6 modification, replacement, repair, and maintenance of aircraft
1568	1568	7 engines or power plants, whether such engines or power plants
1569	1569	8 are installed or uninstalled upon any such aircraft.
1570	1570	9 "Consumable supplies" include, but are not limited to,
1571	1571	10 adhesive, tape, sandpaper, general purpose lubricants,
1572	1572	11 cleaning solution, latex gloves, and protective films. This
1573	1573	12 exemption applies only to the use of qualifying tangible
1574	1574	13 personal property transferred incident to the modification,
1575	1575	14 refurbishment, completion, replacement, repair, or maintenance
1576	1576	15 of aircraft by persons who (i) hold an Air Agency Certificate
1577	1577	16 and are empowered to operate an approved repair station by the
1578	1578	17 Federal Aviation Administration, (ii) have a Class IV Rating,
1579	1579	18 and (iii) conduct operations in accordance with Part 145 of
1580	1580	19 the Federal Aviation Regulations. The exemption does not
1581	1581	20 include aircraft operated by a commercial air carrier
1582	1582	21 providing scheduled passenger air service pursuant to
1583	1583	22 authority issued under Part 121 or Part 129 of the Federal
1584	1584	23 Aviation Regulations. The changes made to this paragraph (27)
1585	1585	24 by Public Act 98-534 are declarative of existing law. It is the
1586	1586	25 intent of the General Assembly that the exemption under this
1587	1587	26 paragraph (27) applies continuously from January 1, 2010
1588	1588
1589	1589
1590	1590
1591	1591
1592	1592
1593	1593	SB2188 - 43 - LRB103 26023 HLH 52377 b
1594	1594
1595	1595
1596	1596	SB2188- 44 -LRB103 26023 HLH 52377 b SB2188 - 44 - LRB103 26023 HLH 52377 b
1597	1597	SB2188 - 44 - LRB103 26023 HLH 52377 b
1598	1598	1 through December 31, 2024; however, no claim for credit or
1599	1599	2 refund is allowed for taxes paid as a result of the
1600	1600	3 disallowance of this exemption on or after January 1, 2015 and
1601	1601	4 prior to February 5, 2020 (the effective date of Public Act
1602	1602	5 101-629) this amendatory Act of the 101st General Assembly.
1603	1603	6 (28) Tangible personal property purchased by a
1604	1604	7 public-facilities corporation, as described in Section
1605	1605	8 11-65-10 of the Illinois Municipal Code, for purposes of
1606	1606	9 constructing or furnishing a municipal convention hall, but
1607	1607	10 only if the legal title to the municipal convention hall is
1608	1608	11 transferred to the municipality without any further
1609	1609	12 consideration by or on behalf of the municipality at the time
1610	1610	13 of the completion of the municipal convention hall or upon the
1611	1611	14 retirement or redemption of any bonds or other debt
1612	1612	15 instruments issued by the public-facilities corporation in
1613	1613	16 connection with the development of the municipal convention
1614	1614	17 hall. This exemption includes existing public-facilities
1615	1615	18 corporations as provided in Section 11-65-25 of the Illinois
1616	1616	19 Municipal Code. This paragraph is exempt from the provisions
1617	1617	20 of Section 3-75.
1618	1618	21 (29) Beginning January 1, 2017 and through December 31,
1619	1619	22 2026, menstrual pads, tampons, and menstrual cups.
1620	1620	23 (30) Tangible personal property transferred to a purchaser
1621	1621	24 who is exempt from the tax imposed by this Act by operation of
1622	1622	25 federal law. This paragraph is exempt from the provisions of
1623	1623	26 Section 3-75.
1624	1624
1625	1625
1626	1626
1627	1627
1628	1628
1629	1629	SB2188 - 44 - LRB103 26023 HLH 52377 b
1630	1630
1631	1631
1632	1632	SB2188- 45 -LRB103 26023 HLH 52377 b SB2188 - 45 - LRB103 26023 HLH 52377 b
1633	1633	SB2188 - 45 - LRB103 26023 HLH 52377 b
1634	1634	1 (31) Qualified tangible personal property used in the
1635	1635	2 construction or operation of a data center that has been
1636	1636	3 granted a certificate of exemption by the Department of
1637	1637	4 Commerce and Economic Opportunity, whether that tangible
1638	1638	5 personal property is purchased by the owner, operator, or
1639	1639	6 tenant of the data center or by a contractor or subcontractor
1640	1640	7 of the owner, operator, or tenant. Data centers that would
1641	1641	8 have qualified for a certificate of exemption prior to January
1642	1642	9 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
1643	1643	10 General Assembly been in effect, may apply for and obtain an
1644	1644	11 exemption for subsequent purchases of computer equipment or
1645	1645	12 enabling software purchased or leased to upgrade, supplement,
1646	1646	13 or replace computer equipment or enabling software purchased
1647	1647	14 or leased in the original investment that would have
1648	1648	15 qualified.
1649	1649	16 The Department of Commerce and Economic Opportunity shall
1650	1650	17 grant a certificate of exemption under this item (31) to
1651	1651	18 qualified data centers as defined by Section 605-1025 of the
1652	1652	19 Department of Commerce and Economic Opportunity Law of the
1653	1653	20 Civil Administrative Code of Illinois.
1654	1654	21 For the purposes of this item (31):
1655	1655	22 "Data center" means a building or a series of
1656	1656	23 buildings rehabilitated or constructed to house working
1657	1657	24 servers in one physical location or multiple sites within
1658	1658	25 the State of Illinois.
1659	1659	26 "Qualified tangible personal property" means:
1660	1660
1661	1661
1662	1662
1663	1663
1664	1664
1665	1665	SB2188 - 45 - LRB103 26023 HLH 52377 b
1666	1666
1667	1667
1668	1668	SB2188- 46 -LRB103 26023 HLH 52377 b SB2188 - 46 - LRB103 26023 HLH 52377 b
1669	1669	SB2188 - 46 - LRB103 26023 HLH 52377 b
1670	1670	1 electrical systems and equipment; climate control and
1671	1671	2 chilling equipment and systems; mechanical systems and
1672	1672	3 equipment; monitoring and secure systems; emergency
1673	1673	4 generators; hardware; computers; servers; data storage
1674	1674	5 devices; network connectivity equipment; racks; cabinets;
1675	1675	6 telecommunications cabling infrastructure; raised floor
1676	1676	7 systems; peripheral components or systems; software;
1677	1677	8 mechanical, electrical, or plumbing systems; battery
1678	1678	9 systems; cooling systems and towers; temperature control
1679	1679	10 systems; other cabling; and other data center
1680	1680	11 infrastructure equipment and systems necessary to operate
1681	1681	12 qualified tangible personal property, including fixtures;
1682	1682	13 and component parts of any of the foregoing, including
1683	1683	14 installation, maintenance, repair, refurbishment, and
1684	1684	15 replacement of qualified tangible personal property to
1685	1685	16 generate, transform, transmit, distribute, or manage
1686	1686	17 electricity necessary to operate qualified tangible
1687	1687	18 personal property; and all other tangible personal
1688	1688	19 property that is essential to the operations of a computer
1689	1689	20 data center. The term "qualified tangible personal
1690	1690	21 property" also includes building materials physically
1691	1691	22 incorporated in to the qualifying data center. To document
1692	1692	23 the exemption allowed under this Section, the retailer
1693	1693	24 must obtain from the purchaser a copy of the certificate
1694	1694	25 of eligibility issued by the Department of Commerce and
1695	1695	26 Economic Opportunity.
1696	1696
1697	1697
1698	1698
1699	1699
1700	1700
1701	1701	SB2188 - 46 - LRB103 26023 HLH 52377 b
1702	1702
1703	1703
1704	1704	SB2188- 47 -LRB103 26023 HLH 52377 b SB2188 - 47 - LRB103 26023 HLH 52377 b
1705	1705	SB2188 - 47 - LRB103 26023 HLH 52377 b
1706	1706	1 This item (31) is exempt from the provisions of Section
1707	1707	2 3-75.
1708	1708	3 (32) Beginning July 1, 2022, breast pumps, breast pump
1709	1709	4 collection and storage supplies, and breast pump kits. This
1710	1710	5 item (32) is exempt from the provisions of Section 3-75. As
1711	1711	6 used in this item (32):
1712	1712	7 "Breast pump" means an electrically controlled or
1713	1713	8 manually controlled pump device designed or marketed to be
1714	1714	9 used to express milk from a human breast during lactation,
1715	1715	10 including the pump device and any battery, AC adapter, or
1716	1716	11 other power supply unit that is used to power the pump
1717	1717	12 device and is packaged and sold with the pump device at the
1718	1718	13 time of sale.
1719	1719	14 "Breast pump collection and storage supplies" means
1720	1720	15 items of tangible personal property designed or marketed
1721	1721	16 to be used in conjunction with a breast pump to collect
1722	1722	17 milk expressed from a human breast and to store collected
1723	1723	18 milk until it is ready for consumption.
1724	1724	19 "Breast pump collection and storage supplies"
1725	1725	20 includes, but is not limited to: breast shields and breast
1726	1726	21 shield connectors; breast pump tubes and tubing adapters;
1727	1727	22 breast pump valves and membranes; backflow protectors and
1728	1728	23 backflow protector adaptors; bottles and bottle caps
1729	1729	24 specific to the operation of the breast pump; and breast
1730	1730	25 milk storage bags.
1731	1731	26 "Breast pump collection and storage supplies" does not
1732	1732
1733	1733
1734	1734
1735	1735
1736	1736
1737	1737	SB2188 - 47 - LRB103 26023 HLH 52377 b
1738	1738
1739	1739
1740	1740	SB2188- 48 -LRB103 26023 HLH 52377 b SB2188 - 48 - LRB103 26023 HLH 52377 b
1741	1741	SB2188 - 48 - LRB103 26023 HLH 52377 b
1742	1742	1 include: (1) bottles and bottle caps not specific to the
1743	1743	2 operation of the breast pump; (2) breast pump travel bags
1744	1744	3 and other similar carrying accessories, including ice
1745	1745	4 packs, labels, and other similar products; (3) breast pump
1746	1746	5 cleaning supplies; (4) nursing bras, bra pads, breast
1747	1747	6 shells, and other similar products; and (5) creams,
1748	1748	7 ointments, and other similar products that relieve
1749	1749	8 breastfeeding-related symptoms or conditions of the
1750	1750	9 breasts or nipples, unless sold as part of a breast pump
1751	1751	10 kit that is pre-packaged by the breast pump manufacturer
1752	1752	11 or distributor.
1753	1753	12 "Breast pump kit" means a kit that: (1) contains no
1754	1754	13 more than a breast pump, breast pump collection and
1755	1755	14 storage supplies, a rechargeable battery for operating the
1756	1756	15 breast pump, a breastmilk cooler, bottle stands, ice
1757	1757	16 packs, and a breast pump carrying case; and (2) is
1758	1758	17 pre-packaged as a breast pump kit by the breast pump
1759	1759	18 manufacturer or distributor.
1760	1760	19 (33) (32) Tangible personal property sold by or on behalf
1761	1761	20 of the State Treasurer pursuant to the Revised Uniform
1762	1762	21 Unclaimed Property Act. This item (33) (32) is exempt from the
1763	1763	22 provisions of Section 3-75.
1764	1764	23 (34) Beginning July 1, 2023, prescription medicines and
1765	1765	24 medical devices (including, but not limited to, products
1766	1766	25 classified as Class III medical devices by the United States
1767	1767	26 Food and Drug Administration that are used for cancer
1768	1768
1769	1769
1770	1770
1771	1771
1772	1772
1773	1773	SB2188 - 48 - LRB103 26023 HLH 52377 b
1774	1774
1775	1775
1776	1776	SB2188- 49 -LRB103 26023 HLH 52377 b SB2188 - 49 - LRB103 26023 HLH 52377 b
1777	1777	SB2188 - 49 - LRB103 26023 HLH 52377 b
1778	1778	1 treatment pursuant to a prescription, as well as any
1779	1779	2 accessories and components related to those devices). This
1780	1780	3 item (34) is exempt from the provisions of Section 3-75.
1781	1781	4 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
1782	1782	5 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1783	1783	6 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1784	1784	7 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
1785	1785	8 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
1786	1786	9 Sec. 3-10. Rate of tax. Unless otherwise provided in this
1787	1787	10 Section, the tax imposed by this Act is at the rate of 6.25% of
1788	1788	11 the selling price of tangible personal property transferred as
1789	1789	12 an incident to the sale of service, but, for the purpose of
1790	1790	13 computing this tax, in no event shall the selling price be less
1791	1791	14 than the cost price of the property to the serviceman.
1792	1792	15 Beginning on July 1, 2000 and through December 31, 2000,
1793	1793	16 with respect to motor fuel, as defined in Section 1.1 of the
1794	1794	17 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1795	1795	18 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1796	1796	19 With respect to gasohol, as defined in the Use Tax Act, the
1797	1797	20 tax imposed by this Act applies to (i) 70% of the selling price
1798	1798	21 of property transferred as an incident to the sale of service
1799	1799	22 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
1800	1800	23 of the selling price of property transferred as an incident to
1801	1801	24 the sale of service on or after July 1, 2003 and on or before
1802	1802	25 July 1, 2017, and (iii) 100% of the selling price thereafter.
1803	1803
1804	1804
1805	1805
1806	1806
1807	1807
1808	1808	SB2188 - 49 - LRB103 26023 HLH 52377 b
1809	1809
1810	1810
1811	1811	SB2188- 50 -LRB103 26023 HLH 52377 b SB2188 - 50 - LRB103 26023 HLH 52377 b
1812	1812	SB2188 - 50 - LRB103 26023 HLH 52377 b
1813	1813	1 If, at any time, however, the tax under this Act on sales of
1814	1814	2 gasohol, as defined in the Use Tax Act, is imposed at the rate
1815	1815	3 of 1.25%, then the tax imposed by this Act applies to 100% of
1816	1816	4 the proceeds of sales of gasohol made during that time.
1817	1817	5 With respect to majority blended ethanol fuel, as defined
1818	1818	6 in the Use Tax Act, the tax imposed by this Act does not apply
1819	1819	7 to the selling price of property transferred as an incident to
1820	1820	8 the sale of service on or after July 1, 2003 and on or before
1821	1821	9 December 31, 2023 but applies to 100% of the selling price
1822	1822	10 thereafter.
1823	1823	11 With respect to biodiesel blends, as defined in the Use
1824	1824	12 Tax Act, with no less than 1% and no more than 10% biodiesel,
1825	1825	13 the tax imposed by this Act applies to (i) 80% of the selling
1826	1826	14 price of property transferred as an incident to the sale of
1827	1827	15 service on or after July 1, 2003 and on or before December 31,
1828	1828	16 2018 and (ii) 100% of the proceeds of the selling price after
1829	1829	17 December 31, 2018 and before January 1, 2024. On and after
1830	1830	18 January 1, 2024 and on or before December 31, 2030, the
1831	1831	19 taxation of biodiesel, renewable diesel, and biodiesel blends
1832	1832	20 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1833	1833	21 at any time, however, the tax under this Act on sales of
1834	1834	22 biodiesel blends, as defined in the Use Tax Act, with no less
1835	1835	23 than 1% and no more than 10% biodiesel is imposed at the rate
1836	1836	24 of 1.25%, then the tax imposed by this Act applies to 100% of
1837	1837	25 the proceeds of sales of biodiesel blends with no less than 1%
1838	1838	26 and no more than 10% biodiesel made during that time.
1839	1839
1840	1840
1841	1841
1842	1842
1843	1843
1844	1844	SB2188 - 50 - LRB103 26023 HLH 52377 b
1845	1845
1846	1846
1847	1847	SB2188- 51 -LRB103 26023 HLH 52377 b SB2188 - 51 - LRB103 26023 HLH 52377 b
1848	1848	SB2188 - 51 - LRB103 26023 HLH 52377 b
1849	1849	1 With respect to biodiesel, as defined in the Use Tax Act,
1850	1850	2 and biodiesel blends, as defined in the Use Tax Act, with more
1851	1851	3 than 10% but no more than 99% biodiesel, the tax imposed by
1852	1852	4 this Act does not apply to the proceeds of the selling price of
1853	1853	5 property transferred as an incident to the sale of service on
1854	1854	6 or after July 1, 2003 and on or before December 31, 2023. On
1855	1855	7 and after January 1, 2024 and on or before December 31, 2030,
1856	1856	8 the taxation of biodiesel, renewable diesel, and biodiesel
1857	1857	9 blends shall be as provided in Section 3-5.1 of the Use Tax
1858	1858	10 Act.
1859	1859	11 At the election of any registered serviceman made for each
1860	1860	12 fiscal year, sales of service in which the aggregate annual
1861	1861	13 cost price of tangible personal property transferred as an
1862	1862	14 incident to the sales of service is less than 35%, or 75% in
1863	1863	15 the case of servicemen transferring prescription drugs or
1864	1864	16 servicemen engaged in graphic arts production, of the
1865	1865	17 aggregate annual total gross receipts from all sales of
1866	1866	18 service, the tax imposed by this Act shall be based on the
1867	1867	19 serviceman's cost price of the tangible personal property
1868	1868	20 transferred as an incident to the sale of those services.
1869	1869	21 Until July 1, 2022 and beginning again on July 1, 2023, the
1870	1870	22 tax shall be imposed at the rate of 1% on food prepared for
1871	1871	23 immediate consumption and transferred incident to a sale of
1872	1872	24 service subject to this Act or the Service Occupation Tax Act
1873	1873	25 by an entity licensed under the Hospital Licensing Act, the
1874	1874	26 Nursing Home Care Act, the Assisted Living and Shared Housing
1875	1875
1876	1876
1877	1877
1878	1878
1879	1879
1880	1880	SB2188 - 51 - LRB103 26023 HLH 52377 b
1881	1881
1882	1882
1883	1883	SB2188- 52 -LRB103 26023 HLH 52377 b SB2188 - 52 - LRB103 26023 HLH 52377 b
1884	1884	SB2188 - 52 - LRB103 26023 HLH 52377 b
1885	1885	1 Act, the ID/DD Community Care Act, the MC/DD Act, the
1886	1886	2 Specialized Mental Health Rehabilitation Act of 2013, or the
1887	1887	3 Child Care Act of 1969, or an entity that holds a permit issued
1888	1888	4 pursuant to the Life Care Facilities Act. Until July 1, 2022
1889	1889	5 and beginning again on July 1, 2023, the tax shall also be
1890	1890	6 imposed at the rate of 1% on food for human consumption that is
1891	1891	7 to be consumed off the premises where it is sold (other than
1892	1892	8 alcoholic beverages, food consisting of or infused with adult
1893	1893	9 use cannabis, soft drinks, and food that has been prepared for
1894	1894	10 immediate consumption and is not otherwise included in this
1895	1895	11 paragraph).
1896	1896	12 Beginning on July 1, 2022 and until July 1, 2023, the tax
1897	1897	13 shall be imposed at the rate of 0% on food prepared for
1898	1898	14 immediate consumption and transferred incident to a sale of
1899	1899	15 service subject to this Act or the Service Occupation Tax Act
1900	1900	16 by an entity licensed under the Hospital Licensing Act, the
1901	1901	17 Nursing Home Care Act, the Assisted Living and Shared Housing
1902	1902	18 Act, the ID/DD Community Care Act, the MC/DD Act, the
1903	1903	19 Specialized Mental Health Rehabilitation Act of 2013, or the
1904	1904	20 Child Care Act of 1969, or an entity that holds a permit issued
1905	1905	21 pursuant to the Life Care Facilities Act. Beginning on July 1,
1906	1906	22 2022 and until July 1, 2023, the tax shall also be imposed at
1907	1907	23 the rate of 0% on food for human consumption that is to be
1908	1908	24 consumed off the premises where it is sold (other than
1909	1909	25 alcoholic beverages, food consisting of or infused with adult
1910	1910	26 use cannabis, soft drinks, and food that has been prepared for
1911	1911
1912	1912
1913	1913
1914	1914
1915	1915
1916	1916	SB2188 - 52 - LRB103 26023 HLH 52377 b
1917	1917
1918	1918
1919	1919	SB2188- 53 -LRB103 26023 HLH 52377 b SB2188 - 53 - LRB103 26023 HLH 52377 b
1920	1920	SB2188 - 53 - LRB103 26023 HLH 52377 b
1921	1921	1 immediate consumption and is not otherwise included in this
1922	1922	2 paragraph).
1923	1923	3 The tax shall also be imposed at the rate of 1% on
1924	1924	4 prescription and nonprescription medicines and , drugs,
1925	1925	5 medical appliances that are not exempt under paragraph (34) of
1926	1926	6 Section 3-5), products classified as Class III medical devices
1927	1927	7 by the United States Food and Drug Administration that are
1928	1928	8 used for cancer treatment pursuant to a prescription, as well
1929	1929	9 as any accessories and components related to those devices,
1930	1930	10 modifications to a motor vehicle for the purpose of rendering
1931	1931	11 it usable by a person with a disability, and insulin, blood
1932	1932	12 sugar testing materials, syringes, and needles used by human
1933	1933	13 diabetics. For the purposes of this Section, until September
1934	1934	14 1, 2009: the term "soft drinks" means any complete, finished,
1935	1935	15 ready-to-use, non-alcoholic drink, whether carbonated or not,
1936	1936	16 including, but not limited to, soda water, cola, fruit juice,
1937	1937	17 vegetable juice, carbonated water, and all other preparations
1938	1938	18 commonly known as soft drinks of whatever kind or description
1939	1939	19 that are contained in any closed or sealed bottle, can,
1940	1940	20 carton, or container, regardless of size; but "soft drinks"
1941	1941	21 does not include coffee, tea, non-carbonated water, infant
1942	1942	22 formula, milk or milk products as defined in the Grade A
1943	1943	23 Pasteurized Milk and Milk Products Act, or drinks containing
1944	1944	24 50% or more natural fruit or vegetable juice.
1945	1945	25 Notwithstanding any other provisions of this Act,
1946	1946	26 beginning September 1, 2009, "soft drinks" means non-alcoholic
1947	1947
1948	1948
1949	1949
1950	1950
1951	1951
1952	1952	SB2188 - 53 - LRB103 26023 HLH 52377 b
1953	1953
1954	1954
1955	1955	SB2188- 54 -LRB103 26023 HLH 52377 b SB2188 - 54 - LRB103 26023 HLH 52377 b
1956	1956	SB2188 - 54 - LRB103 26023 HLH 52377 b
1957	1957	1 beverages that contain natural or artificial sweeteners. "Soft
1958	1958	2 drinks" does do not include beverages that contain milk or
1959	1959	3 milk products, soy, rice or similar milk substitutes, or
1960	1960	4 greater than 50% of vegetable or fruit juice by volume.
1961	1961	5 Until August 1, 2009, and notwithstanding any other
1962	1962	6 provisions of this Act, "food for human consumption that is to
1963	1963	7 be consumed off the premises where it is sold" includes all
1964	1964	8 food sold through a vending machine, except soft drinks and
1965	1965	9 food products that are dispensed hot from a vending machine,
1966	1966	10 regardless of the location of the vending machine. Beginning
1967	1967	11 August 1, 2009, and notwithstanding any other provisions of
1968	1968	12 this Act, "food for human consumption that is to be consumed
1969	1969	13 off the premises where it is sold" includes all food sold
1970	1970	14 through a vending machine, except soft drinks, candy, and food
1971	1971	15 products that are dispensed hot from a vending machine,
1972	1972	16 regardless of the location of the vending machine.
1973	1973	17 Notwithstanding any other provisions of this Act,
1974	1974	18 beginning September 1, 2009, "food for human consumption that
1975	1975	19 is to be consumed off the premises where it is sold" does not
1976	1976	20 include candy. For purposes of this Section, "candy" means a
1977	1977	21 preparation of sugar, honey, or other natural or artificial
1978	1978	22 sweeteners in combination with chocolate, fruits, nuts or
1979	1979	23 other ingredients or flavorings in the form of bars, drops, or
1980	1980	24 pieces. "Candy" does not include any preparation that contains
1981	1981	25 flour or requires refrigeration.
1982	1982	26 Notwithstanding any other provisions of this Act,
1983	1983
1984	1984
1985	1985
1986	1986
1987	1987
1988	1988	SB2188 - 54 - LRB103 26023 HLH 52377 b
1989	1989
1990	1990
1991	1991	SB2188- 55 -LRB103 26023 HLH 52377 b SB2188 - 55 - LRB103 26023 HLH 52377 b
1992	1992	SB2188 - 55 - LRB103 26023 HLH 52377 b
1993	1993	1 beginning September 1, 2009, "nonprescription medicines and
1994	1994	2 drugs" does not include grooming and hygiene products. For
1995	1995	3 purposes of this Section, "grooming and hygiene products"
1996	1996	4 includes, but is not limited to, soaps and cleaning solutions,
1997	1997	5 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1998	1998	6 lotions and screens, unless those products are available by
1999	1999	7 prescription only, regardless of whether the products meet the
2000	2000	8 definition of "over-the-counter-drugs". For the purposes of
2001	2001	9 this paragraph, "over-the-counter-drug" means a drug for human
2002	2002	10 use that contains a label that identifies the product as a drug
2003	2003	11 as required by 21 CFR C.F.R. 201.66. The
2004	2004	12 "over-the-counter-drug" label includes:
2005	2005	13 (A) a A "Drug Facts" panel; or
2006	2006	14 (B) a A statement of the "active ingredient(s)" with a
2007	2007	15 list of those ingredients contained in the compound,
2008	2008	16 substance or preparation.
2009	2009	17 Beginning on January 1, 2014 (the effective date of Public
2010	2010	18 Act 98-122), "prescription and nonprescription medicines and
2011	2011	19 drugs" includes medical cannabis purchased from a registered
2012	2012	20 dispensing organization under the Compassionate Use of Medical
2013	2013	21 Cannabis Program Act.
2014	2014	22 As used in this Section, "adult use cannabis" means
2015	2015	23 cannabis subject to tax under the Cannabis Cultivation
2016	2016	24 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2017	2017	25 and does not include cannabis subject to tax under the
2018	2018	26 Compassionate Use of Medical Cannabis Program Act.
2019	2019
2020	2020
2021	2021
2022	2022
2023	2023
2024	2024	SB2188 - 55 - LRB103 26023 HLH 52377 b
2025	2025
2026	2026
2027	2027	SB2188- 56 -LRB103 26023 HLH 52377 b SB2188 - 56 - LRB103 26023 HLH 52377 b
2028	2028	SB2188 - 56 - LRB103 26023 HLH 52377 b
2029	2029	1 If the property that is acquired from a serviceman is
2030	2030	2 acquired outside Illinois and used outside Illinois before
2031	2031	3 being brought to Illinois for use here and is taxable under
2032	2032	4 this Act, the "selling price" on which the tax is computed
2033	2033	5 shall be reduced by an amount that represents a reasonable
2034	2034	6 allowance for depreciation for the period of prior
2035	2035	7 out-of-state use.
2036	2036	8 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2037	2037	9 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2038	2038	10 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
2039	2039	11 60-20, eff. 4-19-22; revised 6-1-22.)
2040	2040	12 Section 15. The Service Occupation Tax Act is amended by
2041	2041	13 changing Sections 3-5 and 3-10 as follows:
2042	2042	14 (35 ILCS 115/3-5)
2043	2043	15 Sec. 3-5. Exemptions. The following tangible personal
2044	2044	16 property is exempt from the tax imposed by this Act:
2045	2045	17 (1) Personal property sold by a corporation, society,
2046	2046	18 association, foundation, institution, or organization, other
2047	2047	19 than a limited liability company, that is organized and
2048	2048	20 operated as a not-for-profit service enterprise for the
2049	2049	21 benefit of persons 65 years of age or older if the personal
2050	2050	22 property was not purchased by the enterprise for the purpose
2051	2051	23 of resale by the enterprise.
2052	2052	24 (2) Personal property purchased by a not-for-profit
2053	2053
2054	2054
2055	2055
2056	2056
2057	2057
2058	2058	SB2188 - 56 - LRB103 26023 HLH 52377 b
2059	2059
2060	2060
2061	2061	SB2188- 57 -LRB103 26023 HLH 52377 b SB2188 - 57 - LRB103 26023 HLH 52377 b
2062	2062	SB2188 - 57 - LRB103 26023 HLH 52377 b
2063	2063	1 Illinois county fair association for use in conducting,
2064	2064	2 operating, or promoting the county fair.
2065	2065	3 (3) Personal property purchased by any not-for-profit arts
2066	2066	4 or cultural organization that establishes, by proof required
2067	2067	5 by the Department by rule, that it has received an exemption
2068	2068	6 under Section 501(c)(3) of the Internal Revenue Code and that
2069	2069	7 is organized and operated primarily for the presentation or
2070	2070	8 support of arts or cultural programming, activities, or
2071	2071	9 services. These organizations include, but are not limited to,
2072	2072	10 music and dramatic arts organizations such as symphony
2073	2073	11 orchestras and theatrical groups, arts and cultural service
2074	2074	12 organizations, local arts councils, visual arts organizations,
2075	2075	13 and media arts organizations. On and after July 1, 2001 (the
2076	2076	14 effective date of Public Act 92-35), however, an entity
2077	2077	15 otherwise eligible for this exemption shall not make tax-free
2078	2078	16 purchases unless it has an active identification number issued
2079	2079	17 by the Department.
2080	2080	18 (4) Legal tender, currency, medallions, or gold or silver
2081	2081	19 coinage issued by the State of Illinois, the government of the
2082	2082	20 United States of America, or the government of any foreign
2083	2083	21 country, and bullion.
2084	2084	22 (5) Until July 1, 2003 and beginning again on September 1,
2085	2085	23 2004 through August 30, 2014, graphic arts machinery and
2086	2086	24 equipment, including repair and replacement parts, both new
2087	2087	25 and used, and including that manufactured on special order or
2088	2088	26 purchased for lease, certified by the purchaser to be used
2089	2089
2090	2090
2091	2091
2092	2092
2093	2093
2094	2094	SB2188 - 57 - LRB103 26023 HLH 52377 b
2095	2095
2096	2096
2097	2097	SB2188- 58 -LRB103 26023 HLH 52377 b SB2188 - 58 - LRB103 26023 HLH 52377 b
2098	2098	SB2188 - 58 - LRB103 26023 HLH 52377 b
2099	2099	1 primarily for graphic arts production. Equipment includes
2100	2100	2 chemicals or chemicals acting as catalysts but only if the
2101	2101	3 chemicals or chemicals acting as catalysts effect a direct and
2102	2102	4 immediate change upon a graphic arts product. Beginning on
2103	2103	5 July 1, 2017, graphic arts machinery and equipment is included
2104	2104	6 in the manufacturing and assembling machinery and equipment
2105	2105	7 exemption under Section 2 of this Act.
2106	2106	8 (6) Personal property sold by a teacher-sponsored student
2107	2107	9 organization affiliated with an elementary or secondary school
2108	2108	10 located in Illinois.
2109	2109	11 (7) Farm machinery and equipment, both new and used,
2110	2110	12 including that manufactured on special order, certified by the
2111	2111	13 purchaser to be used primarily for production agriculture or
2112	2112	14 State or federal agricultural programs, including individual
2113	2113	15 replacement parts for the machinery and equipment, including
2114	2114	16 machinery and equipment purchased for lease, and including
2115	2115	17 implements of husbandry defined in Section 1-130 of the
2116	2116	18 Illinois Vehicle Code, farm machinery and agricultural
2117	2117	19 chemical and fertilizer spreaders, and nurse wagons required
2118	2118	20 to be registered under Section 3-809 of the Illinois Vehicle
2119	2119	21 Code, but excluding other motor vehicles required to be
2120	2120	22 registered under the Illinois Vehicle Code. Horticultural
2121	2121	23 polyhouses or hoop houses used for propagating, growing, or
2122	2122	24 overwintering plants shall be considered farm machinery and
2123	2123	25 equipment under this item (7). Agricultural chemical tender
2124	2124	26 tanks and dry boxes shall include units sold separately from a
2125	2125
2126	2126
2127	2127
2128	2128
2129	2129
2130	2130	SB2188 - 58 - LRB103 26023 HLH 52377 b
2131	2131
2132	2132
2133	2133	SB2188- 59 -LRB103 26023 HLH 52377 b SB2188 - 59 - LRB103 26023 HLH 52377 b
2134	2134	SB2188 - 59 - LRB103 26023 HLH 52377 b
2135	2135	1 motor vehicle required to be licensed and units sold mounted
2136	2136	2 on a motor vehicle required to be licensed if the selling price
2137	2137	3 of the tender is separately stated.
2138	2138	4 Farm machinery and equipment shall include precision
2139	2139	5 farming equipment that is installed or purchased to be
2140	2140	6 installed on farm machinery and equipment including, but not
2141	2141	7 limited to, tractors, harvesters, sprayers, planters, seeders,
2142	2142	8 or spreaders. Precision farming equipment includes, but is not
2143	2143	9 limited to, soil testing sensors, computers, monitors,
2144	2144	10 software, global positioning and mapping systems, and other
2145	2145	11 such equipment.
2146	2146	12 Farm machinery and equipment also includes computers,
2147	2147	13 sensors, software, and related equipment used primarily in the
2148	2148	14 computer-assisted operation of production agriculture
2149	2149	15 facilities, equipment, and activities such as, but not limited
2150	2150	16 to, the collection, monitoring, and correlation of animal and
2151	2151	17 crop data for the purpose of formulating animal diets and
2152	2152	18 agricultural chemicals. This item (7) is exempt from the
2153	2153	19 provisions of Section 3-55.
2154	2154	20 (8) Until June 30, 2013, fuel and petroleum products sold
2155	2155	21 to or used by an air common carrier, certified by the carrier
2156	2156	22 to be used for consumption, shipment, or storage in the
2157	2157	23 conduct of its business as an air common carrier, for a flight
2158	2158	24 destined for or returning from a location or locations outside
2159	2159	25 the United States without regard to previous or subsequent
2160	2160	26 domestic stopovers.
2161	2161
2162	2162
2163	2163
2164	2164
2165	2165
2166	2166	SB2188 - 59 - LRB103 26023 HLH 52377 b
2167	2167
2168	2168
2169	2169	SB2188- 60 -LRB103 26023 HLH 52377 b SB2188 - 60 - LRB103 26023 HLH 52377 b
2170	2170	SB2188 - 60 - LRB103 26023 HLH 52377 b
2171	2171	1 Beginning July 1, 2013, fuel and petroleum products sold
2172	2172	2 to or used by an air carrier, certified by the carrier to be
2173	2173	3 used for consumption, shipment, or storage in the conduct of
2174	2174	4 its business as an air common carrier, for a flight that (i) is
2175	2175	5 engaged in foreign trade or is engaged in trade between the
2176	2176	6 United States and any of its possessions and (ii) transports
2177	2177	7 at least one individual or package for hire from the city of
2178	2178	8 origination to the city of final destination on the same
2179	2179	9 aircraft, without regard to a change in the flight number of
2180	2180	10 that aircraft.
2181	2181	11 (9) Proceeds of mandatory service charges separately
2182	2182	12 stated on customers' bills for the purchase and consumption of
2183	2183	13 food and beverages, to the extent that the proceeds of the
2184	2184	14 service charge are in fact turned over as tips or as a
2185	2185	15 substitute for tips to the employees who participate directly
2186	2186	16 in preparing, serving, hosting or cleaning up the food or
2187	2187	17 beverage function with respect to which the service charge is
2188	2188	18 imposed.
2189	2189	19 (10) Until July 1, 2003, oil field exploration, drilling,
2190	2190	20 and production equipment, including (i) rigs and parts of
2191	2191	21 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2192	2192	22 pipe and tubular goods, including casing and drill strings,
2193	2193	23 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2194	2194	24 lines, (v) any individual replacement part for oil field
2195	2195	25 exploration, drilling, and production equipment, and (vi)
2196	2196	26 machinery and equipment purchased for lease; but excluding
2197	2197
2198	2198
2199	2199
2200	2200
2201	2201
2202	2202	SB2188 - 60 - LRB103 26023 HLH 52377 b
2203	2203
2204	2204
2205	2205	SB2188- 61 -LRB103 26023 HLH 52377 b SB2188 - 61 - LRB103 26023 HLH 52377 b
2206	2206	SB2188 - 61 - LRB103 26023 HLH 52377 b
2207	2207	1 motor vehicles required to be registered under the Illinois
2208	2208	2 Vehicle Code.
2209	2209	3 (11) Photoprocessing machinery and equipment, including
2210	2210	4 repair and replacement parts, both new and used, including
2211	2211	5 that manufactured on special order, certified by the purchaser
2212	2212	6 to be used primarily for photoprocessing, and including
2213	2213	7 photoprocessing machinery and equipment purchased for lease.
2214	2214	8 (12) Until July 1, 2028, coal and aggregate exploration,
2215	2215	9 mining, off-highway hauling, processing, maintenance, and
2216	2216	10 reclamation equipment, including replacement parts and
2217	2217	11 equipment, and including equipment purchased for lease, but
2218	2218	12 excluding motor vehicles required to be registered under the
2219	2219	13 Illinois Vehicle Code. The changes made to this Section by
2220	2220	14 Public Act 97-767 apply on and after July 1, 2003, but no claim
2221	2221	15 for credit or refund is allowed on or after August 16, 2013
2222	2222	16 (the effective date of Public Act 98-456) for such taxes paid
2223	2223	17 during the period beginning July 1, 2003 and ending on August
2224	2224	18 16, 2013 (the effective date of Public Act 98-456).
2225	2225	19 (13) Beginning January 1, 1992 and through June 30, 2016,
2226	2226	20 food for human consumption that is to be consumed off the
2227	2227	21 premises where it is sold (other than alcoholic beverages,
2228	2228	22 soft drinks and food that has been prepared for immediate
2229	2229	23 consumption) and prescription and non-prescription medicines,
2230	2230	24 drugs, medical appliances, and insulin, urine testing
2231	2231	25 materials, syringes, and needles used by diabetics, for human
2232	2232	26 use, when purchased for use by a person receiving medical
2233	2233
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238	SB2188 - 61 - LRB103 26023 HLH 52377 b
2239	2239
2240	2240
2241	2241	SB2188- 62 -LRB103 26023 HLH 52377 b SB2188 - 62 - LRB103 26023 HLH 52377 b
2242	2242	SB2188 - 62 - LRB103 26023 HLH 52377 b
2243	2243	1 assistance under Article V of the Illinois Public Aid Code who
2244	2244	2 resides in a licensed long-term care facility, as defined in
2245	2245	3 the Nursing Home Care Act, or in a licensed facility as defined
2246	2246	4 in the ID/DD Community Care Act, the MC/DD Act, or the
2247	2247	5 Specialized Mental Health Rehabilitation Act of 2013.
2248	2248	6 (14) Semen used for artificial insemination of livestock
2249	2249	7 for direct agricultural production.
2250	2250	8 (15) Horses, or interests in horses, registered with and
2251	2251	9 meeting the requirements of any of the Arabian Horse Club
2252	2252	10 Registry of America, Appaloosa Horse Club, American Quarter
2253	2253	11 Horse Association, United States Trotting Association, or
2254	2254	12 Jockey Club, as appropriate, used for purposes of breeding or
2255	2255	13 racing for prizes. This item (15) is exempt from the
2256	2256	14 provisions of Section 3-55, and the exemption provided for
2257	2257	15 under this item (15) applies for all periods beginning May 30,
2258	2258	16 1995, but no claim for credit or refund is allowed on or after
2259	2259	17 January 1, 2008 (the effective date of Public Act 95-88) for
2260	2260	18 such taxes paid during the period beginning May 30, 2000 and
2261	2261	19 ending on January 1, 2008 (the effective date of Public Act
2262	2262	20 95-88).
2263	2263	21 (16) Computers and communications equipment utilized for
2264	2264	22 any hospital purpose and equipment used in the diagnosis,
2265	2265	23 analysis, or treatment of hospital patients sold to a lessor
2266	2266	24 who leases the equipment, under a lease of one year or longer
2267	2267	25 executed or in effect at the time of the purchase, to a
2268	2268	26 hospital that has been issued an active tax exemption
2269	2269
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274	SB2188 - 62 - LRB103 26023 HLH 52377 b
2275	2275
2276	2276
2277	2277	SB2188- 63 -LRB103 26023 HLH 52377 b SB2188 - 63 - LRB103 26023 HLH 52377 b
2278	2278	SB2188 - 63 - LRB103 26023 HLH 52377 b
2279	2279	1 identification number by the Department under Section 1g of
2280	2280	2 the Retailers' Occupation Tax Act.
2281	2281	3 (17) Personal property sold to a lessor who leases the
2282	2282	4 property, under a lease of one year or longer executed or in
2283	2283	5 effect at the time of the purchase, to a governmental body that
2284	2284	6 has been issued an active tax exemption identification number
2285	2285	7 by the Department under Section 1g of the Retailers'
2286	2286	8 Occupation Tax Act.
2287	2287	9 (18) Beginning with taxable years ending on or after
2288	2288	10 December 31, 1995 and ending with taxable years ending on or
2289	2289	11 before December 31, 2004, personal property that is donated
2290	2290	12 for disaster relief to be used in a State or federally declared
2291	2291	13 disaster area in Illinois or bordering Illinois by a
2292	2292	14 manufacturer or retailer that is registered in this State to a
2293	2293	15 corporation, society, association, foundation, or institution
2294	2294	16 that has been issued a sales tax exemption identification
2295	2295	17 number by the Department that assists victims of the disaster
2296	2296	18 who reside within the declared disaster area.
2297	2297	19 (19) Beginning with taxable years ending on or after
2298	2298	20 December 31, 1995 and ending with taxable years ending on or
2299	2299	21 before December 31, 2004, personal property that is used in
2300	2300	22 the performance of infrastructure repairs in this State,
2301	2301	23 including but not limited to municipal roads and streets,
2302	2302	24 access roads, bridges, sidewalks, waste disposal systems,
2303	2303	25 water and sewer line extensions, water distribution and
2304	2304	26 purification facilities, storm water drainage and retention
2305	2305
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310	SB2188 - 63 - LRB103 26023 HLH 52377 b
2311	2311
2312	2312
2313	2313	SB2188- 64 -LRB103 26023 HLH 52377 b SB2188 - 64 - LRB103 26023 HLH 52377 b
2314	2314	SB2188 - 64 - LRB103 26023 HLH 52377 b
2315	2315	1 facilities, and sewage treatment facilities, resulting from a
2316	2316	2 State or federally declared disaster in Illinois or bordering
2317	2317	3 Illinois when such repairs are initiated on facilities located
2318	2318	4 in the declared disaster area within 6 months after the
2319	2319	5 disaster.
2320	2320	6 (20) Beginning July 1, 1999, game or game birds sold at a
2321	2321	7 "game breeding and hunting preserve area" as that term is used
2322	2322	8 in the Wildlife Code. This paragraph is exempt from the
2323	2323	9 provisions of Section 3-55.
2324	2324	10 (21) A motor vehicle, as that term is defined in Section
2325	2325	11 1-146 of the Illinois Vehicle Code, that is donated to a
2326	2326	12 corporation, limited liability company, society, association,
2327	2327	13 foundation, or institution that is determined by the
2328	2328	14 Department to be organized and operated exclusively for
2329	2329	15 educational purposes. For purposes of this exemption, "a
2330	2330	16 corporation, limited liability company, society, association,
2331	2331	17 foundation, or institution organized and operated exclusively
2332	2332	18 for educational purposes" means all tax-supported public
2333	2333	19 schools, private schools that offer systematic instruction in
2334	2334	20 useful branches of learning by methods common to public
2335	2335	21 schools and that compare favorably in their scope and
2336	2336	22 intensity with the course of study presented in tax-supported
2337	2337	23 schools, and vocational or technical schools or institutes
2338	2338	24 organized and operated exclusively to provide a course of
2339	2339	25 study of not less than 6 weeks duration and designed to prepare
2340	2340	26 individuals to follow a trade or to pursue a manual,
2341	2341
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346	SB2188 - 64 - LRB103 26023 HLH 52377 b
2347	2347
2348	2348
2349	2349	SB2188- 65 -LRB103 26023 HLH 52377 b SB2188 - 65 - LRB103 26023 HLH 52377 b
2350	2350	SB2188 - 65 - LRB103 26023 HLH 52377 b
2351	2351	1 technical, mechanical, industrial, business, or commercial
2352	2352	2 occupation.
2353	2353	3 (22) Beginning January 1, 2000, personal property,
2354	2354	4 including food, purchased through fundraising events for the
2355	2355	5 benefit of a public or private elementary or secondary school,
2356	2356	6 a group of those schools, or one or more school districts if
2357	2357	7 the events are sponsored by an entity recognized by the school
2358	2358	8 district that consists primarily of volunteers and includes
2359	2359	9 parents and teachers of the school children. This paragraph
2360	2360	10 does not apply to fundraising events (i) for the benefit of
2361	2361	11 private home instruction or (ii) for which the fundraising
2362	2362	12 entity purchases the personal property sold at the events from
2363	2363	13 another individual or entity that sold the property for the
2364	2364	14 purpose of resale by the fundraising entity and that profits
2365	2365	15 from the sale to the fundraising entity. This paragraph is
2366	2366	16 exempt from the provisions of Section 3-55.
2367	2367	17 (23) Beginning January 1, 2000 and through December 31,
2368	2368	18 2001, new or used automatic vending machines that prepare and
2369	2369	19 serve hot food and beverages, including coffee, soup, and
2370	2370	20 other items, and replacement parts for these machines.
2371	2371	21 Beginning January 1, 2002 and through June 30, 2003, machines
2372	2372	22 and parts for machines used in commercial, coin-operated
2373	2373	23 amusement and vending business if a use or occupation tax is
2374	2374	24 paid on the gross receipts derived from the use of the
2375	2375	25 commercial, coin-operated amusement and vending machines. This
2376	2376	26 paragraph is exempt from the provisions of Section 3-55.
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	SB2188 - 65 - LRB103 26023 HLH 52377 b
2383	2383
2384	2384
2385	2385	SB2188- 66 -LRB103 26023 HLH 52377 b SB2188 - 66 - LRB103 26023 HLH 52377 b
2386	2386	SB2188 - 66 - LRB103 26023 HLH 52377 b
2387	2387	1 (24) Beginning on August 2, 2001 (the effective date of
2388	2388	2 Public Act 92-227), computers and communications equipment
2389	2389	3 utilized for any hospital purpose and equipment used in the
2390	2390	4 diagnosis, analysis, or treatment of hospital patients sold to
2391	2391	5 a lessor who leases the equipment, under a lease of one year or
2392	2392	6 longer executed or in effect at the time of the purchase, to a
2393	2393	7 hospital that has been issued an active tax exemption
2394	2394	8 identification number by the Department under Section 1g of
2395	2395	9 the Retailers' Occupation Tax Act. This paragraph is exempt
2396	2396	10 from the provisions of Section 3-55.
2397	2397	11 (25) Beginning on August 2, 2001 (the effective date of
2398	2398	12 Public Act 92-227), personal property sold to a lessor who
2399	2399	13 leases the property, under a lease of one year or longer
2400	2400	14 executed or in effect at the time of the purchase, to a
2401	2401	15 governmental body that has been issued an active tax exemption
2402	2402	16 identification number by the Department under Section 1g of
2403	2403	17 the Retailers' Occupation Tax Act. This paragraph is exempt
2404	2404	18 from the provisions of Section 3-55.
2405	2405	19 (26) Beginning on January 1, 2002 and through June 30,
2406	2406	20 2016, tangible personal property purchased from an Illinois
2407	2407	21 retailer by a taxpayer engaged in centralized purchasing
2408	2408	22 activities in Illinois who will, upon receipt of the property
2409	2409	23 in Illinois, temporarily store the property in Illinois (i)
2410	2410	24 for the purpose of subsequently transporting it outside this
2411	2411	25 State for use or consumption thereafter solely outside this
2412	2412	26 State or (ii) for the purpose of being processed, fabricated,
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	SB2188 - 66 - LRB103 26023 HLH 52377 b
2419	2419
2420	2420
2421	2421	SB2188- 67 -LRB103 26023 HLH 52377 b SB2188 - 67 - LRB103 26023 HLH 52377 b
2422	2422	SB2188 - 67 - LRB103 26023 HLH 52377 b
2423	2423	1 or manufactured into, attached to, or incorporated into other
2424	2424	2 tangible personal property to be transported outside this
2425	2425	3 State and thereafter used or consumed solely outside this
2426	2426	4 State. The Director of Revenue shall, pursuant to rules
2427	2427	5 adopted in accordance with the Illinois Administrative
2428	2428	6 Procedure Act, issue a permit to any taxpayer in good standing
2429	2429	7 with the Department who is eligible for the exemption under
2430	2430	8 this paragraph (26). The permit issued under this paragraph
2431	2431	9 (26) shall authorize the holder, to the extent and in the
2432	2432	10 manner specified in the rules adopted under this Act, to
2433	2433	11 purchase tangible personal property from a retailer exempt
2434	2434	12 from the taxes imposed by this Act. Taxpayers shall maintain
2435	2435	13 all necessary books and records to substantiate the use and
2436	2436	14 consumption of all such tangible personal property outside of
2437	2437	15 the State of Illinois.
2438	2438	16 (27) Beginning January 1, 2008, tangible personal property
2439	2439	17 used in the construction or maintenance of a community water
2440	2440	18 supply, as defined under Section 3.145 of the Environmental
2441	2441	19 Protection Act, that is operated by a not-for-profit
2442	2442	20 corporation that holds a valid water supply permit issued
2443	2443	21 under Title IV of the Environmental Protection Act. This
2444	2444	22 paragraph is exempt from the provisions of Section 3-55.
2445	2445	23 (28) Tangible personal property sold to a
2446	2446	24 public-facilities corporation, as described in Section
2447	2447	25 11-65-10 of the Illinois Municipal Code, for purposes of
2448	2448	26 constructing or furnishing a municipal convention hall, but
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	SB2188 - 67 - LRB103 26023 HLH 52377 b
2455	2455
2456	2456
2457	2457	SB2188- 68 -LRB103 26023 HLH 52377 b SB2188 - 68 - LRB103 26023 HLH 52377 b
2458	2458	SB2188 - 68 - LRB103 26023 HLH 52377 b
2459	2459	1 only if the legal title to the municipal convention hall is
2460	2460	2 transferred to the municipality without any further
2461	2461	3 consideration by or on behalf of the municipality at the time
2462	2462	4 of the completion of the municipal convention hall or upon the
2463	2463	5 retirement or redemption of any bonds or other debt
2464	2464	6 instruments issued by the public-facilities corporation in
2465	2465	7 connection with the development of the municipal convention
2466	2466	8 hall. This exemption includes existing public-facilities
2467	2467	9 corporations as provided in Section 11-65-25 of the Illinois
2468	2468	10 Municipal Code. This paragraph is exempt from the provisions
2469	2469	11 of Section 3-55.
2470	2470	12 (29) Beginning January 1, 2010 and continuing through
2471	2471	13 December 31, 2024, materials, parts, equipment, components,
2472	2472	14 and furnishings incorporated into or upon an aircraft as part
2473	2473	15 of the modification, refurbishment, completion, replacement,
2474	2474	16 repair, or maintenance of the aircraft. This exemption
2475	2475	17 includes consumable supplies used in the modification,
2476	2476	18 refurbishment, completion, replacement, repair, and
2477	2477	19 maintenance of aircraft, but excludes any materials, parts,
2478	2478	20 equipment, components, and consumable supplies used in the
2479	2479	21 modification, replacement, repair, and maintenance of aircraft
2480	2480	22 engines or power plants, whether such engines or power plants
2481	2481	23 are installed or uninstalled upon any such aircraft.
2482	2482	24 "Consumable supplies" include, but are not limited to,
2483	2483	25 adhesive, tape, sandpaper, general purpose lubricants,
2484	2484	26 cleaning solution, latex gloves, and protective films. This
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	SB2188 - 68 - LRB103 26023 HLH 52377 b
2491	2491
2492	2492
2493	2493	SB2188- 69 -LRB103 26023 HLH 52377 b SB2188 - 69 - LRB103 26023 HLH 52377 b
2494	2494	SB2188 - 69 - LRB103 26023 HLH 52377 b
2495	2495	1 exemption applies only to the transfer of qualifying tangible
2496	2496	2 personal property incident to the modification, refurbishment,
2497	2497	3 completion, replacement, repair, or maintenance of an aircraft
2498	2498	4 by persons who (i) hold an Air Agency Certificate and are
2499	2499	5 empowered to operate an approved repair station by the Federal
2500	2500	6 Aviation Administration, (ii) have a Class IV Rating, and
2501	2501	7 (iii) conduct operations in accordance with Part 145 of the
2502	2502	8 Federal Aviation Regulations. The exemption does not include
2503	2503	9 aircraft operated by a commercial air carrier providing
2504	2504	10 scheduled passenger air service pursuant to authority issued
2505	2505	11 under Part 121 or Part 129 of the Federal Aviation
2506	2506	12 Regulations. The changes made to this paragraph (29) by Public
2507	2507	13 Act 98-534 are declarative of existing law. It is the intent of
2508	2508	14 the General Assembly that the exemption under this paragraph
2509	2509	15 (29) applies continuously from January 1, 2010 through
2510	2510	16 December 31, 2024; however, no claim for credit or refund is
2511	2511	17 allowed for taxes paid as a result of the disallowance of this
2512	2512	18 exemption on or after January 1, 2015 and prior to February 5,
2513	2513	19 2020 (the effective date of Public Act 101-629) this
2514	2514	20 amendatory Act of the 101st General Assembly.
2515	2515	21 (30) Beginning January 1, 2017 and through December 31,
2516	2516	22 2026, menstrual pads, tampons, and menstrual cups.
2517	2517	23 (31) Tangible personal property transferred to a purchaser
2518	2518	24 who is exempt from tax by operation of federal law. This
2519	2519	25 paragraph is exempt from the provisions of Section 3-55.
2520	2520	26 (32) Qualified tangible personal property used in the
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	SB2188 - 69 - LRB103 26023 HLH 52377 b
2527	2527
2528	2528
2529	2529	SB2188- 70 -LRB103 26023 HLH 52377 b SB2188 - 70 - LRB103 26023 HLH 52377 b
2530	2530	SB2188 - 70 - LRB103 26023 HLH 52377 b
2531	2531	1 construction or operation of a data center that has been
2532	2532	2 granted a certificate of exemption by the Department of
2533	2533	3 Commerce and Economic Opportunity, whether that tangible
2534	2534	4 personal property is purchased by the owner, operator, or
2535	2535	5 tenant of the data center or by a contractor or subcontractor
2536	2536	6 of the owner, operator, or tenant. Data centers that would
2537	2537	7 have qualified for a certificate of exemption prior to January
2538	2538	8 1, 2020 had Public Act 101-31 this amendatory Act of the 101st
2539	2539	9 General Assembly been in effect, may apply for and obtain an
2540	2540	10 exemption for subsequent purchases of computer equipment or
2541	2541	11 enabling software purchased or leased to upgrade, supplement,
2542	2542	12 or replace computer equipment or enabling software purchased
2543	2543	13 or leased in the original investment that would have
2544	2544	14 qualified.
2545	2545	15 The Department of Commerce and Economic Opportunity shall
2546	2546	16 grant a certificate of exemption under this item (32) to
2547	2547	17 qualified data centers as defined by Section 605-1025 of the
2548	2548	18 Department of Commerce and Economic Opportunity Law of the
2549	2549	19 Civil Administrative Code of Illinois.
2550	2550	20 For the purposes of this item (32):
2551	2551	21 "Data center" means a building or a series of
2552	2552	22 buildings rehabilitated or constructed to house working
2553	2553	23 servers in one physical location or multiple sites within
2554	2554	24 the State of Illinois.
2555	2555	25 "Qualified tangible personal property" means:
2556	2556	26 electrical systems and equipment; climate control and
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	SB2188 - 70 - LRB103 26023 HLH 52377 b
2563	2563
2564	2564
2565	2565	SB2188- 71 -LRB103 26023 HLH 52377 b SB2188 - 71 - LRB103 26023 HLH 52377 b
2566	2566	SB2188 - 71 - LRB103 26023 HLH 52377 b
2567	2567	1 chilling equipment and systems; mechanical systems and
2568	2568	2 equipment; monitoring and secure systems; emergency
2569	2569	3 generators; hardware; computers; servers; data storage
2570	2570	4 devices; network connectivity equipment; racks; cabinets;
2571	2571	5 telecommunications cabling infrastructure; raised floor
2572	2572	6 systems; peripheral components or systems; software;
2573	2573	7 mechanical, electrical, or plumbing systems; battery
2574	2574	8 systems; cooling systems and towers; temperature control
2575	2575	9 systems; other cabling; and other data center
2576	2576	10 infrastructure equipment and systems necessary to operate
2577	2577	11 qualified tangible personal property, including fixtures;
2578	2578	12 and component parts of any of the foregoing, including
2579	2579	13 installation, maintenance, repair, refurbishment, and
2580	2580	14 replacement of qualified tangible personal property to
2581	2581	15 generate, transform, transmit, distribute, or manage
2582	2582	16 electricity necessary to operate qualified tangible
2583	2583	17 personal property; and all other tangible personal
2584	2584	18 property that is essential to the operations of a computer
2585	2585	19 data center. The term "qualified tangible personal
2586	2586	20 property" also includes building materials physically
2587	2587	21 incorporated in to the qualifying data center. To document
2588	2588	22 the exemption allowed under this Section, the retailer
2589	2589	23 must obtain from the purchaser a copy of the certificate
2590	2590	24 of eligibility issued by the Department of Commerce and
2591	2591	25 Economic Opportunity.
2592	2592	26 This item (32) is exempt from the provisions of Section
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	SB2188 - 71 - LRB103 26023 HLH 52377 b
2599	2599
2600	2600
2601	2601	SB2188- 72 -LRB103 26023 HLH 52377 b SB2188 - 72 - LRB103 26023 HLH 52377 b
2602	2602	SB2188 - 72 - LRB103 26023 HLH 52377 b
2603	2603	1 3-55.
2604	2604	2 (33) Beginning July 1, 2022, breast pumps, breast pump
2605	2605	3 collection and storage supplies, and breast pump kits. This
2606	2606	4 item (33) is exempt from the provisions of Section 3-55. As
2607	2607	5 used in this item (33):
2608	2608	6 "Breast pump" means an electrically controlled or
2609	2609	7 manually controlled pump device designed or marketed to be
2610	2610	8 used to express milk from a human breast during lactation,
2611	2611	9 including the pump device and any battery, AC adapter, or
2612	2612	10 other power supply unit that is used to power the pump
2613	2613	11 device and is packaged and sold with the pump device at the
2614	2614	12 time of sale.
2615	2615	13 "Breast pump collection and storage supplies" means
2616	2616	14 items of tangible personal property designed or marketed
2617	2617	15 to be used in conjunction with a breast pump to collect
2618	2618	16 milk expressed from a human breast and to store collected
2619	2619	17 milk until it is ready for consumption.
2620	2620	18 "Breast pump collection and storage supplies"
2621	2621	19 includes, but is not limited to: breast shields and breast
2622	2622	20 shield connectors; breast pump tubes and tubing adapters;
2623	2623	21 breast pump valves and membranes; backflow protectors and
2624	2624	22 backflow protector adaptors; bottles and bottle caps
2625	2625	23 specific to the operation of the breast pump; and breast
2626	2626	24 milk storage bags.
2627	2627	25 "Breast pump collection and storage supplies" does not
2628	2628	26 include: (1) bottles and bottle caps not specific to the
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	SB2188 - 72 - LRB103 26023 HLH 52377 b
2635	2635
2636	2636
2637	2637	SB2188- 73 -LRB103 26023 HLH 52377 b SB2188 - 73 - LRB103 26023 HLH 52377 b
2638	2638	SB2188 - 73 - LRB103 26023 HLH 52377 b
2639	2639	1 operation of the breast pump; (2) breast pump travel bags
2640	2640	2 and other similar carrying accessories, including ice
2641	2641	3 packs, labels, and other similar products; (3) breast pump
2642	2642	4 cleaning supplies; (4) nursing bras, bra pads, breast
2643	2643	5 shells, and other similar products; and (5) creams,
2644	2644	6 ointments, and other similar products that relieve
2645	2645	7 breastfeeding-related symptoms or conditions of the
2646	2646	8 breasts or nipples, unless sold as part of a breast pump
2647	2647	9 kit that is pre-packaged by the breast pump manufacturer
2648	2648	10 or distributor.
2649	2649	11 "Breast pump kit" means a kit that: (1) contains no
2650	2650	12 more than a breast pump, breast pump collection and
2651	2651	13 storage supplies, a rechargeable battery for operating the
2652	2652	14 breast pump, a breastmilk cooler, bottle stands, ice
2653	2653	15 packs, and a breast pump carrying case; and (2) is
2654	2654	16 pre-packaged as a breast pump kit by the breast pump
2655	2655	17 manufacturer or distributor.
2656	2656	18 (34) (33) Tangible personal property sold by or on behalf
2657	2657	19 of the State Treasurer pursuant to the Revised Uniform
2658	2658	20 Unclaimed Property Act. This item (34) (33) is exempt from the
2659	2659	21 provisions of Section 3-55.
2660	2660	22 (35) Beginning July 1, 2023, prescription medicines and
2661	2661	23 medical devices (including, but not limited to, products
2662	2662	24 classified as Class III medical devices by the United States
2663	2663	25 Food and Drug Administration that are used for cancer
2664	2664	26 treatment pursuant to a prescription, as well as any
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	SB2188 - 73 - LRB103 26023 HLH 52377 b
2671	2671
2672	2672
2673	2673	SB2188- 74 -LRB103 26023 HLH 52377 b SB2188 - 74 - LRB103 26023 HLH 52377 b
2674	2674	SB2188 - 74 - LRB103 26023 HLH 52377 b
2675	2675	1 accessories and components related to those devices). This
2676	2676	2 item (35) is exempt from the provisions of Section 3-55.
2677	2677	3 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
2678	2678	4 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2679	2679	5 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2680	2680	6 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
2681	2681	7 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2682	2682	8 Sec. 3-10. Rate of tax. Unless otherwise provided in this
2683	2683	9 Section, the tax imposed by this Act is at the rate of 6.25% of
2684	2684	10 the "selling price", as defined in Section 2 of the Service Use
2685	2685	11 Tax Act, of the tangible personal property. For the purpose of
2686	2686	12 computing this tax, in no event shall the "selling price" be
2687	2687	13 less than the cost price to the serviceman of the tangible
2688	2688	14 personal property transferred. The selling price of each item
2689	2689	15 of tangible personal property transferred as an incident of a
2690	2690	16 sale of service may be shown as a distinct and separate item on
2691	2691	17 the serviceman's billing to the service customer. If the
2692	2692	18 selling price is not so shown, the selling price of the
2693	2693	19 tangible personal property is deemed to be 50% of the
2694	2694	20 serviceman's entire billing to the service customer. When,
2695	2695	21 however, a serviceman contracts to design, develop, and
2696	2696	22 produce special order machinery or equipment, the tax imposed
2697	2697	23 by this Act shall be based on the serviceman's cost price of
2698	2698	24 the tangible personal property transferred incident to the
2699	2699	25 completion of the contract.
2700	2700
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705	SB2188 - 74 - LRB103 26023 HLH 52377 b
2706	2706
2707	2707
2708	2708	SB2188- 75 -LRB103 26023 HLH 52377 b SB2188 - 75 - LRB103 26023 HLH 52377 b
2709	2709	SB2188 - 75 - LRB103 26023 HLH 52377 b
2710	2710	1 Beginning on July 1, 2000 and through December 31, 2000,
2711	2711	2 with respect to motor fuel, as defined in Section 1.1 of the
2712	2712	3 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2713	2713	4 the Use Tax Act, the tax is imposed at the rate of 1.25%.
2714	2714	5 With respect to gasohol, as defined in the Use Tax Act, the
2715	2715	6 tax imposed by this Act shall apply to (i) 70% of the cost
2716	2716	7 price of property transferred as an incident to the sale of
2717	2717	8 service on or after January 1, 1990, and before July 1, 2003,
2718	2718	9 (ii) 80% of the selling price of property transferred as an
2719	2719	10 incident to the sale of service on or after July 1, 2003 and on
2720	2720	11 or before July 1, 2017, and (iii) 100% of the cost price
2721	2721	12 thereafter. If, at any time, however, the tax under this Act on
2722	2722	13 sales of gasohol, as defined in the Use Tax Act, is imposed at
2723	2723	14 the rate of 1.25%, then the tax imposed by this Act applies to
2724	2724	15 100% of the proceeds of sales of gasohol made during that time.
2725	2725	16 With respect to majority blended ethanol fuel, as defined
2726	2726	17 in the Use Tax Act, the tax imposed by this Act does not apply
2727	2727	18 to the selling price of property transferred as an incident to
2728	2728	19 the sale of service on or after July 1, 2003 and on or before
2729	2729	20 December 31, 2023 but applies to 100% of the selling price
2730	2730	21 thereafter.
2731	2731	22 With respect to biodiesel blends, as defined in the Use
2732	2732	23 Tax Act, with no less than 1% and no more than 10% biodiesel,
2733	2733	24 the tax imposed by this Act applies to (i) 80% of the selling
2734	2734	25 price of property transferred as an incident to the sale of
2735	2735	26 service on or after July 1, 2003 and on or before December 31,
2736	2736
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741	SB2188 - 75 - LRB103 26023 HLH 52377 b
2742	2742
2743	2743
2744	2744	SB2188- 76 -LRB103 26023 HLH 52377 b SB2188 - 76 - LRB103 26023 HLH 52377 b
2745	2745	SB2188 - 76 - LRB103 26023 HLH 52377 b
2746	2746	1 2018 and (ii) 100% of the proceeds of the selling price after
2747	2747	2 December 31, 2018 and before January 1, 2024. On and after
2748	2748	3 January 1, 2024 and on or before December 31, 2030, the
2749	2749	4 taxation of biodiesel, renewable diesel, and biodiesel blends
2750	2750	5 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
2751	2751	6 at any time, however, the tax under this Act on sales of
2752	2752	7 biodiesel blends, as defined in the Use Tax Act, with no less
2753	2753	8 than 1% and no more than 10% biodiesel is imposed at the rate
2754	2754	9 of 1.25%, then the tax imposed by this Act applies to 100% of
2755	2755	10 the proceeds of sales of biodiesel blends with no less than 1%
2756	2756	11 and no more than 10% biodiesel made during that time.
2757	2757	12 With respect to biodiesel, as defined in the Use Tax Act,
2758	2758	13 and biodiesel blends, as defined in the Use Tax Act, with more
2759	2759	14 than 10% but no more than 99% biodiesel material, the tax
2760	2760	15 imposed by this Act does not apply to the proceeds of the
2761	2761	16 selling price of property transferred as an incident to the
2762	2762	17 sale of service on or after July 1, 2003 and on or before
2763	2763	18 December 31, 2023. On and after January 1, 2024 and on or
2764	2764	19 before December 31, 2030, the taxation of biodiesel, renewable
2765	2765	20 diesel, and biodiesel blends shall be as provided in Section
2766	2766	21 3-5.1 of the Use Tax Act.
2767	2767	22 At the election of any registered serviceman made for each
2768	2768	23 fiscal year, sales of service in which the aggregate annual
2769	2769	24 cost price of tangible personal property transferred as an
2770	2770	25 incident to the sales of service is less than 35%, or 75% in
2771	2771	26 the case of servicemen transferring prescription drugs or
2772	2772
2773	2773
2774	2774
2775	2775
2776	2776
2777	2777	SB2188 - 76 - LRB103 26023 HLH 52377 b
2778	2778
2779	2779
2780	2780	SB2188- 77 -LRB103 26023 HLH 52377 b SB2188 - 77 - LRB103 26023 HLH 52377 b
2781	2781	SB2188 - 77 - LRB103 26023 HLH 52377 b
2782	2782	1 servicemen engaged in graphic arts production, of the
2783	2783	2 aggregate annual total gross receipts from all sales of
2784	2784	3 service, the tax imposed by this Act shall be based on the
2785	2785	4 serviceman's cost price of the tangible personal property
2786	2786	5 transferred incident to the sale of those services.
2787	2787	6 Until July 1, 2022 and beginning again on July 1, 2023, the
2788	2788	7 tax shall be imposed at the rate of 1% on food prepared for
2789	2789	8 immediate consumption and transferred incident to a sale of
2790	2790	9 service subject to this Act or the Service Use Tax Act by an
2791	2791	10 entity licensed under the Hospital Licensing Act, the Nursing
2792	2792	11 Home Care Act, the Assisted Living and Shared Housing Act, the
2793	2793	12 ID/DD Community Care Act, the MC/DD Act, the Specialized
2794	2794	13 Mental Health Rehabilitation Act of 2013, or the Child Care
2795	2795	14 Act of 1969, or an entity that holds a permit issued pursuant
2796	2796	15 to the Life Care Facilities Act. Until July 1, 2022 and
2797	2797	16 beginning again on July 1, 2023, the tax shall also be imposed
2798	2798	17 at the rate of 1% on food for human consumption that is to be
2799	2799	18 consumed off the premises where it is sold (other than
2800	2800	19 alcoholic beverages, food consisting of or infused with adult
2801	2801	20 use cannabis, soft drinks, and food that has been prepared for
2802	2802	21 immediate consumption and is not otherwise included in this
2803	2803	22 paragraph).
2804	2804	23 Beginning on July 1, 2022 and until July 1, 2023, the tax
2805	2805	24 shall be imposed at the rate of 0% on food prepared for
2806	2806	25 immediate consumption and transferred incident to a sale of
2807	2807	26 service subject to this Act or the Service Use Tax Act by an
2808	2808
2809	2809
2810	2810
2811	2811
2812	2812
2813	2813	SB2188 - 77 - LRB103 26023 HLH 52377 b
2814	2814
2815	2815
2816	2816	SB2188- 78 -LRB103 26023 HLH 52377 b SB2188 - 78 - LRB103 26023 HLH 52377 b
2817	2817	SB2188 - 78 - LRB103 26023 HLH 52377 b
2818	2818	1 entity licensed under the Hospital Licensing Act, the Nursing
2819	2819	2 Home Care Act, the Assisted Living and Shared Housing Act, the
2820	2820	3 ID/DD Community Care Act, the MC/DD Act, the Specialized
2821	2821	4 Mental Health Rehabilitation Act of 2013, or the Child Care
2822	2822	5 Act of 1969, or an entity that holds a permit issued pursuant
2823	2823	6 to the Life Care Facilities Act. Beginning July 1, 2022 and
2824	2824	7 until July 1, 2023, the tax shall also be imposed at the rate
2825	2825	8 of 0% on food for human consumption that is to be consumed off
2826	2826	9 the premises where it is sold (other than alcoholic beverages,
2827	2827	10 food consisting of or infused with adult use cannabis, soft
2828	2828	11 drinks, and food that has been prepared for immediate
2829	2829	12 consumption and is not otherwise included in this paragraph).
2830	2830	13 The tax shall also be imposed at the rate of 1% on
2831	2831	14 prescription and nonprescription medicines and , drugs,
2832	2832	15 medical appliances that are not exempt under paragraph (35) of
2833	2833	16 Section 3-5), products classified as Class III medical devices
2834	2834	17 by the United States Food and Drug Administration that are
2835	2835	18 used for cancer treatment pursuant to a prescription, as well
2836	2836	19 as any accessories and components related to those devices,
2837	2837	20 modifications to a motor vehicle for the purpose of rendering
2838	2838	21 it usable by a person with a disability, and insulin, blood
2839	2839	22 sugar testing materials, syringes, and needles used by human
2840	2840	23 diabetics. For the purposes of this Section, until September
2841	2841	24 1, 2009: the term "soft drinks" means any complete, finished,
2842	2842	25 ready-to-use, non-alcoholic drink, whether carbonated or not,
2843	2843	26 including, but not limited to, soda water, cola, fruit juice,
2844	2844
2845	2845
2846	2846
2847	2847
2848	2848
2849	2849	SB2188 - 78 - LRB103 26023 HLH 52377 b
2850	2850
2851	2851
2852	2852	SB2188- 79 -LRB103 26023 HLH 52377 b SB2188 - 79 - LRB103 26023 HLH 52377 b
2853	2853	SB2188 - 79 - LRB103 26023 HLH 52377 b
2854	2854	1 vegetable juice, carbonated water, and all other preparations
2855	2855	2 commonly known as soft drinks of whatever kind or description
2856	2856	3 that are contained in any closed or sealed can, carton, or
2857	2857	4 container, regardless of size; but "soft drinks" does not
2858	2858	5 include coffee, tea, non-carbonated water, infant formula,
2859	2859	6 milk or milk products as defined in the Grade A Pasteurized
2860	2860	7 Milk and Milk Products Act, or drinks containing 50% or more
2861	2861	8 natural fruit or vegetable juice.
2862	2862	9 Notwithstanding any other provisions of this Act,
2863	2863	10 beginning September 1, 2009, "soft drinks" means non-alcoholic
2864	2864	11 beverages that contain natural or artificial sweeteners. "Soft
2865	2865	12 drinks" does do not include beverages that contain milk or
2866	2866	13 milk products, soy, rice or similar milk substitutes, or
2867	2867	14 greater than 50% of vegetable or fruit juice by volume.
2868	2868	15 Until August 1, 2009, and notwithstanding any other
2869	2869	16 provisions of this Act, "food for human consumption that is to
2870	2870	17 be consumed off the premises where it is sold" includes all
2871	2871	18 food sold through a vending machine, except soft drinks and
2872	2872	19 food products that are dispensed hot from a vending machine,
2873	2873	20 regardless of the location of the vending machine. Beginning
2874	2874	21 August 1, 2009, and notwithstanding any other provisions of
2875	2875	22 this Act, "food for human consumption that is to be consumed
2876	2876	23 off the premises where it is sold" includes all food sold
2877	2877	24 through a vending machine, except soft drinks, candy, and food
2878	2878	25 products that are dispensed hot from a vending machine,
2879	2879	26 regardless of the location of the vending machine.
2880	2880
2881	2881
2882	2882
2883	2883
2884	2884
2885	2885	SB2188 - 79 - LRB103 26023 HLH 52377 b
2886	2886
2887	2887
2888	2888	SB2188- 80 -LRB103 26023 HLH 52377 b SB2188 - 80 - LRB103 26023 HLH 52377 b
2889	2889	SB2188 - 80 - LRB103 26023 HLH 52377 b
2890	2890	1 Notwithstanding any other provisions of this Act,
2891	2891	2 beginning September 1, 2009, "food for human consumption that
2892	2892	3 is to be consumed off the premises where it is sold" does not
2893	2893	4 include candy. For purposes of this Section, "candy" means a
2894	2894	5 preparation of sugar, honey, or other natural or artificial
2895	2895	6 sweeteners in combination with chocolate, fruits, nuts or
2896	2896	7 other ingredients or flavorings in the form of bars, drops, or
2897	2897	8 pieces. "Candy" does not include any preparation that contains
2898	2898	9 flour or requires refrigeration.
2899	2899	10 Notwithstanding any other provisions of this Act,
2900	2900	11 beginning September 1, 2009, "nonprescription medicines and
2901	2901	12 drugs" does not include grooming and hygiene products. For
2902	2902	13 purposes of this Section, "grooming and hygiene products"
2903	2903	14 includes, but is not limited to, soaps and cleaning solutions,
2904	2904	15 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2905	2905	16 lotions and screens, unless those products are available by
2906	2906	17 prescription only, regardless of whether the products meet the
2907	2907	18 definition of "over-the-counter-drugs". For the purposes of
2908	2908	19 this paragraph, "over-the-counter-drug" means a drug for human
2909	2909	20 use that contains a label that identifies the product as a drug
2910	2910	21 as required by 21 CFR C.F.R. 201.66. The
2911	2911	22 "over-the-counter-drug" label includes:
2912	2912	23 (A) a A "Drug Facts" panel; or
2913	2913	24 (B) a A statement of the "active ingredient(s)" with a
2914	2914	25 list of those ingredients contained in the compound,
2915	2915	26 substance or preparation.
2916	2916
2917	2917
2918	2918
2919	2919
2920	2920
2921	2921	SB2188 - 80 - LRB103 26023 HLH 52377 b
2922	2922
2923	2923
2924	2924	SB2188- 81 -LRB103 26023 HLH 52377 b SB2188 - 81 - LRB103 26023 HLH 52377 b
2925	2925	SB2188 - 81 - LRB103 26023 HLH 52377 b
2926	2926	1 Beginning on January 1, 2014 (the effective date of Public
2927	2927	2 Act 98-122), "prescription and nonprescription medicines and
2928	2928	3 drugs" includes medical cannabis purchased from a registered
2929	2929	4 dispensing organization under the Compassionate Use of Medical
2930	2930	5 Cannabis Program Act.
2931	2931	6 As used in this Section, "adult use cannabis" means
2932	2932	7 cannabis subject to tax under the Cannabis Cultivation
2933	2933	8 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2934	2934	9 and does not include cannabis subject to tax under the
2935	2935	10 Compassionate Use of Medical Cannabis Program Act.
2936	2936	11 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2937	2937	12 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2938	2938	13 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
2939	2939	14 60-25, eff. 4-19-22; revised 6-1-22.)
2940	2940	15 Section 20. The Retailers' Occupation Tax Act is amended
2941	2941	16 by changing Sections 2-5 and 2-10 as follows:
2942	2942	17 (35 ILCS 120/2-5)
2943	2943	18 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2944	2944	19 the sale of the following tangible personal property are
2945	2945	20 exempt from the tax imposed by this Act:
2946	2946	21 (1) Farm chemicals.
2947	2947	22 (2) Farm machinery and equipment, both new and used,
2948	2948	23 including that manufactured on special order, certified by
2949	2949	24 the purchaser to be used primarily for production
2950	2950
2951	2951
2952	2952
2953	2953
2954	2954
2955	2955	SB2188 - 81 - LRB103 26023 HLH 52377 b
2956	2956
2957	2957
2958	2958	SB2188- 82 -LRB103 26023 HLH 52377 b SB2188 - 82 - LRB103 26023 HLH 52377 b
2959	2959	SB2188 - 82 - LRB103 26023 HLH 52377 b
2960	2960	1 agriculture or State or federal agricultural programs,
2961	2961	2 including individual replacement parts for the machinery
2962	2962	3 and equipment, including machinery and equipment purchased
2963	2963	4 for lease, and including implements of husbandry defined
2964	2964	5 in Section 1-130 of the Illinois Vehicle Code, farm
2965	2965	6 machinery and agricultural chemical and fertilizer
2966	2966	7 spreaders, and nurse wagons required to be registered
2967	2967	8 under Section 3-809 of the Illinois Vehicle Code, but
2968	2968	9 excluding other motor vehicles required to be registered
2969	2969	10 under the Illinois Vehicle Code. Horticultural polyhouses
2970	2970	11 or hoop houses used for propagating, growing, or
2971	2971	12 overwintering plants shall be considered farm machinery
2972	2972	13 and equipment under this item (2). Agricultural chemical
2973	2973	14 tender tanks and dry boxes shall include units sold
2974	2974	15 separately from a motor vehicle required to be licensed
2975	2975	16 and units sold mounted on a motor vehicle required to be
2976	2976	17 licensed, if the selling price of the tender is separately
2977	2977	18 stated.
2978	2978	19 Farm machinery and equipment shall include precision
2979	2979	20 farming equipment that is installed or purchased to be
2980	2980	21 installed on farm machinery and equipment including, but
2981	2981	22 not limited to, tractors, harvesters, sprayers, planters,
2982	2982	23 seeders, or spreaders. Precision farming equipment
2983	2983	24 includes, but is not limited to, soil testing sensors,
2984	2984	25 computers, monitors, software, global positioning and
2985	2985	26 mapping systems, and other such equipment.
2986	2986
2987	2987
2988	2988
2989	2989
2990	2990
2991	2991	SB2188 - 82 - LRB103 26023 HLH 52377 b
2992	2992
2993	2993
2994	2994	SB2188- 83 -LRB103 26023 HLH 52377 b SB2188 - 83 - LRB103 26023 HLH 52377 b
2995	2995	SB2188 - 83 - LRB103 26023 HLH 52377 b
2996	2996	1 Farm machinery and equipment also includes computers,
2997	2997	2 sensors, software, and related equipment used primarily in
2998	2998	3 the computer-assisted operation of production agriculture
2999	2999	4 facilities, equipment, and activities such as, but not
3000	3000	5 limited to, the collection, monitoring, and correlation of
3001	3001	6 animal and crop data for the purpose of formulating animal
3002	3002	7 diets and agricultural chemicals. This item (2) is exempt
3003	3003	8 from the provisions of Section 2-70.
3004	3004	9 (3) Until July 1, 2003, distillation machinery and
3005	3005	10 equipment, sold as a unit or kit, assembled or installed
3006	3006	11 by the retailer, certified by the user to be used only for
3007	3007	12 the production of ethyl alcohol that will be used for
3008	3008	13 consumption as motor fuel or as a component of motor fuel
3009	3009	14 for the personal use of the user, and not subject to sale
3010	3010	15 or resale.
3011	3011	16 (4) Until July 1, 2003 and beginning again September
3012	3012	17 1, 2004 through August 30, 2014, graphic arts machinery
3013	3013	18 and equipment, including repair and replacement parts,
3014	3014	19 both new and used, and including that manufactured on
3015	3015	20 special order or purchased for lease, certified by the
3016	3016	21 purchaser to be used primarily for graphic arts
3017	3017	22 production. Equipment includes chemicals or chemicals
3018	3018	23 acting as catalysts but only if the chemicals or chemicals
3019	3019	24 acting as catalysts effect a direct and immediate change
3020	3020	25 upon a graphic arts product. Beginning on July 1, 2017,
3021	3021	26 graphic arts machinery and equipment is included in the
3022	3022
3023	3023
3024	3024
3025	3025
3026	3026
3027	3027	SB2188 - 83 - LRB103 26023 HLH 52377 b
3028	3028
3029	3029
3030	3030	SB2188- 84 -LRB103 26023 HLH 52377 b SB2188 - 84 - LRB103 26023 HLH 52377 b
3031	3031	SB2188 - 84 - LRB103 26023 HLH 52377 b
3032	3032	1 manufacturing and assembling machinery and equipment
3033	3033	2 exemption under paragraph (14).
3034	3034	3 (5) A motor vehicle that is used for automobile
3035	3035	4 renting, as defined in the Automobile Renting Occupation
3036	3036	5 and Use Tax Act. This paragraph is exempt from the
3037	3037	6 provisions of Section 2-70.
3038	3038	7 (6) Personal property sold by a teacher-sponsored
3039	3039	8 student organization affiliated with an elementary or
3040	3040	9 secondary school located in Illinois.
3041	3041	10 (7) Until July 1, 2003, proceeds of that portion of
3042	3042	11 the selling price of a passenger car the sale of which is
3043	3043	12 subject to the Replacement Vehicle Tax.
3044	3044	13 (8) Personal property sold to an Illinois county fair
3045	3045	14 association for use in conducting, operating, or promoting
3046	3046	15 the county fair.
3047	3047	16 (9) Personal property sold to a not-for-profit arts or
3048	3048	17 cultural organization that establishes, by proof required
3049	3049	18 by the Department by rule, that it has received an
3050	3050	19 exemption under Section 501(c)(3) of the Internal Revenue
3051	3051	20 Code and that is organized and operated primarily for the
3052	3052	21 presentation or support of arts or cultural programming,
3053	3053	22 activities, or services. These organizations include, but
3054	3054	23 are not limited to, music and dramatic arts organizations
3055	3055	24 such as symphony orchestras and theatrical groups, arts
3056	3056	25 and cultural service organizations, local arts councils,
3057	3057	26 visual arts organizations, and media arts organizations.
3058	3058
3059	3059
3060	3060
3061	3061
3062	3062
3063	3063	SB2188 - 84 - LRB103 26023 HLH 52377 b
3064	3064
3065	3065
3066	3066	SB2188- 85 -LRB103 26023 HLH 52377 b SB2188 - 85 - LRB103 26023 HLH 52377 b
3067	3067	SB2188 - 85 - LRB103 26023 HLH 52377 b
3068	3068	1 On and after July 1, 2001 (the effective date of Public Act
3069	3069	2 92-35), however, an entity otherwise eligible for this
3070	3070	3 exemption shall not make tax-free purchases unless it has
3071	3071	4 an active identification number issued by the Department.
3072	3072	5 (10) Personal property sold by a corporation, society,
3073	3073	6 association, foundation, institution, or organization,
3074	3074	7 other than a limited liability company, that is organized
3075	3075	8 and operated as a not-for-profit service enterprise for
3076	3076	9 the benefit of persons 65 years of age or older if the
3077	3077	10 personal property was not purchased by the enterprise for
3078	3078	11 the purpose of resale by the enterprise.
3079	3079	12 (11) Personal property sold to a governmental body, to
3080	3080	13 a corporation, society, association, foundation, or
3081	3081	14 institution organized and operated exclusively for
3082	3082	15 charitable, religious, or educational purposes, or to a
3083	3083	16 not-for-profit corporation, society, association,
3084	3084	17 foundation, institution, or organization that has no
3085	3085	18 compensated officers or employees and that is organized
3086	3086	19 and operated primarily for the recreation of persons 55
3087	3087	20 years of age or older. A limited liability company may
3088	3088	21 qualify for the exemption under this paragraph only if the
3089	3089	22 limited liability company is organized and operated
3090	3090	23 exclusively for educational purposes. On and after July 1,
3091	3091	24 1987, however, no entity otherwise eligible for this
3092	3092	25 exemption shall make tax-free purchases unless it has an
3093	3093	26 active identification number issued by the Department.
3094	3094
3095	3095
3096	3096
3097	3097
3098	3098
3099	3099	SB2188 - 85 - LRB103 26023 HLH 52377 b
3100	3100
3101	3101
3102	3102	SB2188- 86 -LRB103 26023 HLH 52377 b SB2188 - 86 - LRB103 26023 HLH 52377 b
3103	3103	SB2188 - 86 - LRB103 26023 HLH 52377 b
3104	3104	1 (12) (Blank).
3105	3105	2 (12-5) On and after July 1, 2003 and through June 30,
3106	3106	3 2004, motor vehicles of the second division with a gross
3107	3107	4 vehicle weight in excess of 8,000 pounds that are subject
3108	3108	5 to the commercial distribution fee imposed under Section
3109	3109	6 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3110	3110	7 2004 and through June 30, 2005, the use in this State of
3111	3111	8 motor vehicles of the second division: (i) with a gross
3112	3112	9 vehicle weight rating in excess of 8,000 pounds; (ii) that
3113	3113	10 are subject to the commercial distribution fee imposed
3114	3114	11 under Section 3-815.1 of the Illinois Vehicle Code; and
3115	3115	12 (iii) that are primarily used for commercial purposes.
3116	3116	13 Through June 30, 2005, this exemption applies to repair
3117	3117	14 and replacement parts added after the initial purchase of
3118	3118	15 such a motor vehicle if that motor vehicle is used in a
3119	3119	16 manner that would qualify for the rolling stock exemption
3120	3120	17 otherwise provided for in this Act. For purposes of this
3121	3121	18 paragraph, "used for commercial purposes" means the
3122	3122	19 transportation of persons or property in furtherance of
3123	3123	20 any commercial or industrial enterprise whether for-hire
3124	3124	21 or not.
3125	3125	22 (13) Proceeds from sales to owners, lessors, or
3126	3126	23 shippers of tangible personal property that is utilized by
3127	3127	24 interstate carriers for hire for use as rolling stock
3128	3128	25 moving in interstate commerce and equipment operated by a
3129	3129	26 telecommunications provider, licensed as a common carrier
3130	3130
3131	3131
3132	3132
3133	3133
3134	3134
3135	3135	SB2188 - 86 - LRB103 26023 HLH 52377 b
3136	3136
3137	3137
3138	3138	SB2188- 87 -LRB103 26023 HLH 52377 b SB2188 - 87 - LRB103 26023 HLH 52377 b
3139	3139	SB2188 - 87 - LRB103 26023 HLH 52377 b
3140	3140	1 by the Federal Communications Commission, which is
3141	3141	2 permanently installed in or affixed to aircraft moving in
3142	3142	3 interstate commerce.
3143	3143	4 (14) Machinery and equipment that will be used by the
3144	3144	5 purchaser, or a lessee of the purchaser, primarily in the
3145	3145	6 process of manufacturing or assembling tangible personal
3146	3146	7 property for wholesale or retail sale or lease, whether
3147	3147	8 the sale or lease is made directly by the manufacturer or
3148	3148	9 by some other person, whether the materials used in the
3149	3149	10 process are owned by the manufacturer or some other
3150	3150	11 person, or whether the sale or lease is made apart from or
3151	3151	12 as an incident to the seller's engaging in the service
3152	3152	13 occupation of producing machines, tools, dies, jigs,
3153	3153	14 patterns, gauges, or other similar items of no commercial
3154	3154	15 value on special order for a particular purchaser. The
3155	3155	16 exemption provided by this paragraph (14) does not include
3156	3156	17 machinery and equipment used in (i) the generation of
3157	3157	18 electricity for wholesale or retail sale; (ii) the
3158	3158	19 generation or treatment of natural or artificial gas for
3159	3159	20 wholesale or retail sale that is delivered to customers
3160	3160	21 through pipes, pipelines, or mains; or (iii) the treatment
3161	3161	22 of water for wholesale or retail sale that is delivered to
3162	3162	23 customers through pipes, pipelines, or mains. The
3163	3163	24 provisions of Public Act 98-583 are declaratory of
3164	3164	25 existing law as to the meaning and scope of this
3165	3165	26 exemption. Beginning on July 1, 2017, the exemption
3166	3166
3167	3167
3168	3168
3169	3169
3170	3170
3171	3171	SB2188 - 87 - LRB103 26023 HLH 52377 b
3172	3172
3173	3173
3174	3174	SB2188- 88 -LRB103 26023 HLH 52377 b SB2188 - 88 - LRB103 26023 HLH 52377 b
3175	3175	SB2188 - 88 - LRB103 26023 HLH 52377 b
3176	3176	1 provided by this paragraph (14) includes, but is not
3177	3177	2 limited to, graphic arts machinery and equipment, as
3178	3178	3 defined in paragraph (4) of this Section.
3179	3179	4 (15) Proceeds of mandatory service charges separately
3180	3180	5 stated on customers' bills for purchase and consumption of
3181	3181	6 food and beverages, to the extent that the proceeds of the
3182	3182	7 service charge are in fact turned over as tips or as a
3183	3183	8 substitute for tips to the employees who participate
3184	3184	9 directly in preparing, serving, hosting or cleaning up the
3185	3185	10 food or beverage function with respect to which the
3186	3186	11 service charge is imposed.
3187	3187	12 (16) Tangible personal property sold to a purchaser if
3188	3188	13 the purchaser is exempt from use tax by operation of
3189	3189	14 federal law. This paragraph is exempt from the provisions
3190	3190	15 of Section 2-70.
3191	3191	16 (17) Tangible personal property sold to a common
3192	3192	17 carrier by rail or motor that receives the physical
3193	3193	18 possession of the property in Illinois and that transports
3194	3194	19 the property, or shares with another common carrier in the
3195	3195	20 transportation of the property, out of Illinois on a
3196	3196	21 standard uniform bill of lading showing the seller of the
3197	3197	22 property as the shipper or consignor of the property to a
3198	3198	23 destination outside Illinois, for use outside Illinois.
3199	3199	24 (18) Legal tender, currency, medallions, or gold or
3200	3200	25 silver coinage issued by the State of Illinois, the
3201	3201	26 government of the United States of America, or the
3202	3202
3203	3203
3204	3204
3205	3205
3206	3206
3207	3207	SB2188 - 88 - LRB103 26023 HLH 52377 b
3208	3208
3209	3209
3210	3210	SB2188- 89 -LRB103 26023 HLH 52377 b SB2188 - 89 - LRB103 26023 HLH 52377 b
3211	3211	SB2188 - 89 - LRB103 26023 HLH 52377 b
3212	3212	1 government of any foreign country, and bullion.
3213	3213	2 (19) Until July 1, 2003, oil field exploration,
3214	3214	3 drilling, and production equipment, including (i) rigs and
3215	3215	4 parts of rigs, rotary rigs, cable tool rigs, and workover
3216	3216	5 rigs, (ii) pipe and tubular goods, including casing and
3217	3217	6 drill strings, (iii) pumps and pump-jack units, (iv)
3218	3218	7 storage tanks and flow lines, (v) any individual
3219	3219	8 replacement part for oil field exploration, drilling, and
3220	3220	9 production equipment, and (vi) machinery and equipment
3221	3221	10 purchased for lease; but excluding motor vehicles required
3222	3222	11 to be registered under the Illinois Vehicle Code.
3223	3223	12 (20) Photoprocessing machinery and equipment,
3224	3224	13 including repair and replacement parts, both new and used,
3225	3225	14 including that manufactured on special order, certified by
3226	3226	15 the purchaser to be used primarily for photoprocessing,
3227	3227	16 and including photoprocessing machinery and equipment
3228	3228	17 purchased for lease.
3229	3229	18 (21) Until July 1, 2028, coal and aggregate
3230	3230	19 exploration, mining, off-highway hauling, processing,
3231	3231	20 maintenance, and reclamation equipment, including
3232	3232	21 replacement parts and equipment, and including equipment
3233	3233	22 purchased for lease, but excluding motor vehicles required
3234	3234	23 to be registered under the Illinois Vehicle Code. The
3235	3235	24 changes made to this Section by Public Act 97-767 apply on
3236	3236	25 and after July 1, 2003, but no claim for credit or refund
3237	3237	26 is allowed on or after August 16, 2013 (the effective date
3238	3238
3239	3239
3240	3240
3241	3241
3242	3242
3243	3243	SB2188 - 89 - LRB103 26023 HLH 52377 b
3244	3244
3245	3245
3246	3246	SB2188- 90 -LRB103 26023 HLH 52377 b SB2188 - 90 - LRB103 26023 HLH 52377 b
3247	3247	SB2188 - 90 - LRB103 26023 HLH 52377 b
3248	3248	1 of Public Act 98-456) for such taxes paid during the
3249	3249	2 period beginning July 1, 2003 and ending on August 16,
3250	3250	3 2013 (the effective date of Public Act 98-456).
3251	3251	4 (22) Until June 30, 2013, fuel and petroleum products
3252	3252	5 sold to or used by an air carrier, certified by the carrier
3253	3253	6 to be used for consumption, shipment, or storage in the
3254	3254	7 conduct of its business as an air common carrier, for a
3255	3255	8 flight destined for or returning from a location or
3256	3256	9 locations outside the United States without regard to
3257	3257	10 previous or subsequent domestic stopovers.
3258	3258	11 Beginning July 1, 2013, fuel and petroleum products
3259	3259	12 sold to or used by an air carrier, certified by the carrier
3260	3260	13 to be used for consumption, shipment, or storage in the
3261	3261	14 conduct of its business as an air common carrier, for a
3262	3262	15 flight that (i) is engaged in foreign trade or is engaged
3263	3263	16 in trade between the United States and any of its
3264	3264	17 possessions and (ii) transports at least one individual or
3265	3265	18 package for hire from the city of origination to the city
3266	3266	19 of final destination on the same aircraft, without regard
3267	3267	20 to a change in the flight number of that aircraft.
3268	3268	21 (23) A transaction in which the purchase order is
3269	3269	22 received by a florist who is located outside Illinois, but
3270	3270	23 who has a florist located in Illinois deliver the property
3271	3271	24 to the purchaser or the purchaser's donee in Illinois.
3272	3272	25 (24) Fuel consumed or used in the operation of ships,
3273	3273	26 barges, or vessels that are used primarily in or for the
3274	3274
3275	3275
3276	3276
3277	3277
3278	3278
3279	3279	SB2188 - 90 - LRB103 26023 HLH 52377 b
3280	3280
3281	3281
3282	3282	SB2188- 91 -LRB103 26023 HLH 52377 b SB2188 - 91 - LRB103 26023 HLH 52377 b
3283	3283	SB2188 - 91 - LRB103 26023 HLH 52377 b
3284	3284	1 transportation of property or the conveyance of persons
3285	3285	2 for hire on rivers bordering on this State if the fuel is
3286	3286	3 delivered by the seller to the purchaser's barge, ship, or
3287	3287	4 vessel while it is afloat upon that bordering river.
3288	3288	5 (25) Except as provided in item (25-5) of this
3289	3289	6 Section, a motor vehicle sold in this State to a
3290	3290	7 nonresident even though the motor vehicle is delivered to
3291	3291	8 the nonresident in this State, if the motor vehicle is not
3292	3292	9 to be titled in this State, and if a drive-away permit is
3293	3293	10 issued to the motor vehicle as provided in Section 3-603
3294	3294	11 of the Illinois Vehicle Code or if the nonresident
3295	3295	12 purchaser has vehicle registration plates to transfer to
3296	3296	13 the motor vehicle upon returning to his or her home state.
3297	3297	14 The issuance of the drive-away permit or having the
3298	3298	15 out-of-state registration plates to be transferred is
3299	3299	16 prima facie evidence that the motor vehicle will not be
3300	3300	17 titled in this State.
3301	3301	18 (25-5) The exemption under item (25) does not apply if
3302	3302	19 the state in which the motor vehicle will be titled does
3303	3303	20 not allow a reciprocal exemption for a motor vehicle sold
3304	3304	21 and delivered in that state to an Illinois resident but
3305	3305	22 titled in Illinois. The tax collected under this Act on
3306	3306	23 the sale of a motor vehicle in this State to a resident of
3307	3307	24 another state that does not allow a reciprocal exemption
3308	3308	25 shall be imposed at a rate equal to the state's rate of tax
3309	3309	26 on taxable property in the state in which the purchaser is
3310	3310
3311	3311
3312	3312
3313	3313
3314	3314
3315	3315	SB2188 - 91 - LRB103 26023 HLH 52377 b
3316	3316
3317	3317
3318	3318	SB2188- 92 -LRB103 26023 HLH 52377 b SB2188 - 92 - LRB103 26023 HLH 52377 b
3319	3319	SB2188 - 92 - LRB103 26023 HLH 52377 b
3320	3320	1 a resident, except that the tax shall not exceed the tax
3321	3321	2 that would otherwise be imposed under this Act. At the
3322	3322	3 time of the sale, the purchaser shall execute a statement,
3323	3323	4 signed under penalty of perjury, of his or her intent to
3324	3324	5 title the vehicle in the state in which the purchaser is a
3325	3325	6 resident within 30 days after the sale and of the fact of
3326	3326	7 the payment to the State of Illinois of tax in an amount
3327	3327	8 equivalent to the state's rate of tax on taxable property
3328	3328	9 in his or her state of residence and shall submit the
3329	3329	10 statement to the appropriate tax collection agency in his
3330	3330	11 or her state of residence. In addition, the retailer must
3331	3331	12 retain a signed copy of the statement in his or her
3332	3332	13 records. Nothing in this item shall be construed to
3333	3333	14 require the removal of the vehicle from this state
3334	3334	15 following the filing of an intent to title the vehicle in
3335	3335	16 the purchaser's state of residence if the purchaser titles
3336	3336	17 the vehicle in his or her state of residence within 30 days
3337	3337	18 after the date of sale. The tax collected under this Act in
3338	3338	19 accordance with this item (25-5) shall be proportionately
3339	3339	20 distributed as if the tax were collected at the 6.25%
3340	3340	21 general rate imposed under this Act.
3341	3341	22 (25-7) Beginning on July 1, 2007, no tax is imposed
3342	3342	23 under this Act on the sale of an aircraft, as defined in
3343	3343	24 Section 3 of the Illinois Aeronautics Act, if all of the
3344	3344	25 following conditions are met:
3345	3345	26 (1) the aircraft leaves this State within 15 days
3346	3346
3347	3347
3348	3348
3349	3349
3350	3350
3351	3351	SB2188 - 92 - LRB103 26023 HLH 52377 b
3352	3352
3353	3353
3354	3354	SB2188- 93 -LRB103 26023 HLH 52377 b SB2188 - 93 - LRB103 26023 HLH 52377 b
3355	3355	SB2188 - 93 - LRB103 26023 HLH 52377 b
3356	3356	1 after the later of either the issuance of the final
3357	3357	2 billing for the sale of the aircraft, or the
3358	3358	3 authorized approval for return to service, completion
3359	3359	4 of the maintenance record entry, and completion of the
3360	3360	5 test flight and ground test for inspection, as
3361	3361	6 required by 14 CFR C.F.R. 91.407;
3362	3362	7 (2) the aircraft is not based or registered in
3363	3363	8 this State after the sale of the aircraft; and
3364	3364	9 (3) the seller retains in his or her books and
3365	3365	10 records and provides to the Department a signed and
3366	3366	11 dated certification from the purchaser, on a form
3367	3367	12 prescribed by the Department, certifying that the
3368	3368	13 requirements of this item (25-7) are met. The
3369	3369	14 certificate must also include the name and address of
3370	3370	15 the purchaser, the address of the location where the
3371	3371	16 aircraft is to be titled or registered, the address of
3372	3372	17 the primary physical location of the aircraft, and
3373	3373	18 other information that the Department may reasonably
3374	3374	19 require.
3375	3375	20 For purposes of this item (25-7):
3376	3376	21 "Based in this State" means hangared, stored, or
3377	3377	22 otherwise used, excluding post-sale customizations as
3378	3378	23 defined in this Section, for 10 or more days in each
3379	3379	24 12-month period immediately following the date of the sale
3380	3380	25 of the aircraft.
3381	3381	26 "Registered in this State" means an aircraft
3382	3382
3383	3383
3384	3384
3385	3385
3386	3386
3387	3387	SB2188 - 93 - LRB103 26023 HLH 52377 b
3388	3388
3389	3389
3390	3390	SB2188- 94 -LRB103 26023 HLH 52377 b SB2188 - 94 - LRB103 26023 HLH 52377 b
3391	3391	SB2188 - 94 - LRB103 26023 HLH 52377 b
3392	3392	1 registered with the Department of Transportation,
3393	3393	2 Aeronautics Division, or titled or registered with the
3394	3394	3 Federal Aviation Administration to an address located in
3395	3395	4 this State.
3396	3396	5 This paragraph (25-7) is exempt from the provisions of
3397	3397	6 Section 2-70.
3398	3398	7 (26) Semen used for artificial insemination of
3399	3399	8 livestock for direct agricultural production.
3400	3400	9 (27) Horses, or interests in horses, registered with
3401	3401	10 and meeting the requirements of any of the Arabian Horse
3402	3402	11 Club Registry of America, Appaloosa Horse Club, American
3403	3403	12 Quarter Horse Association, United States Trotting
3404	3404	13 Association, or Jockey Club, as appropriate, used for
3405	3405	14 purposes of breeding or racing for prizes. This item (27)
3406	3406	15 is exempt from the provisions of Section 2-70, and the
3407	3407	16 exemption provided for under this item (27) applies for
3408	3408	17 all periods beginning May 30, 1995, but no claim for
3409	3409	18 credit or refund is allowed on or after January 1, 2008
3410	3410	19 (the effective date of Public Act 95-88) for such taxes
3411	3411	20 paid during the period beginning May 30, 2000 and ending
3412	3412	21 on January 1, 2008 (the effective date of Public Act
3413	3413	22 95-88).
3414	3414	23 (28) Computers and communications equipment utilized
3415	3415	24 for any hospital purpose and equipment used in the
3416	3416	25 diagnosis, analysis, or treatment of hospital patients
3417	3417	26 sold to a lessor who leases the equipment, under a lease of
3418	3418
3419	3419
3420	3420
3421	3421
3422	3422
3423	3423	SB2188 - 94 - LRB103 26023 HLH 52377 b
3424	3424
3425	3425
3426	3426	SB2188- 95 -LRB103 26023 HLH 52377 b SB2188 - 95 - LRB103 26023 HLH 52377 b
3427	3427	SB2188 - 95 - LRB103 26023 HLH 52377 b
3428	3428	1 one year or longer executed or in effect at the time of the
3429	3429	2 purchase, to a hospital that has been issued an active tax
3430	3430	3 exemption identification number by the Department under
3431	3431	4 Section 1g of this Act.
3432	3432	5 (29) Personal property sold to a lessor who leases the
3433	3433	6 property, under a lease of one year or longer executed or
3434	3434	7 in effect at the time of the purchase, to a governmental
3435	3435	8 body that has been issued an active tax exemption
3436	3436	9 identification number by the Department under Section 1g
3437	3437	10 of this Act.
3438	3438	11 (30) Beginning with taxable years ending on or after
3439	3439	12 December 31, 1995 and ending with taxable years ending on
3440	3440	13 or before December 31, 2004, personal property that is
3441	3441	14 donated for disaster relief to be used in a State or
3442	3442	15 federally declared disaster area in Illinois or bordering
3443	3443	16 Illinois by a manufacturer or retailer that is registered
3444	3444	17 in this State to a corporation, society, association,
3445	3445	18 foundation, or institution that has been issued a sales
3446	3446	19 tax exemption identification number by the Department that
3447	3447	20 assists victims of the disaster who reside within the
3448	3448	21 declared disaster area.
3449	3449	22 (31) Beginning with taxable years ending on or after
3450	3450	23 December 31, 1995 and ending with taxable years ending on
3451	3451	24 or before December 31, 2004, personal property that is
3452	3452	25 used in the performance of infrastructure repairs in this
3453	3453	26 State, including but not limited to municipal roads and
3454	3454
3455	3455
3456	3456
3457	3457
3458	3458
3459	3459	SB2188 - 95 - LRB103 26023 HLH 52377 b
3460	3460
3461	3461
3462	3462	SB2188- 96 -LRB103 26023 HLH 52377 b SB2188 - 96 - LRB103 26023 HLH 52377 b
3463	3463	SB2188 - 96 - LRB103 26023 HLH 52377 b
3464	3464	1 streets, access roads, bridges, sidewalks, waste disposal
3465	3465	2 systems, water and sewer line extensions, water
3466	3466	3 distribution and purification facilities, storm water
3467	3467	4 drainage and retention facilities, and sewage treatment
3468	3468	5 facilities, resulting from a State or federally declared
3469	3469	6 disaster in Illinois or bordering Illinois when such
3470	3470	7 repairs are initiated on facilities located in the
3471	3471	8 declared disaster area within 6 months after the disaster.
3472	3472	9 (32) Beginning July 1, 1999, game or game birds sold
3473	3473	10 at a "game breeding and hunting preserve area" as that
3474	3474	11 term is used in the Wildlife Code. This paragraph is
3475	3475	12 exempt from the provisions of Section 2-70.
3476	3476	13 (33) A motor vehicle, as that term is defined in
3477	3477	14 Section 1-146 of the Illinois Vehicle Code, that is
3478	3478	15 donated to a corporation, limited liability company,
3479	3479	16 society, association, foundation, or institution that is
3480	3480	17 determined by the Department to be organized and operated
3481	3481	18 exclusively for educational purposes. For purposes of this
3482	3482	19 exemption, "a corporation, limited liability company,
3483	3483	20 society, association, foundation, or institution organized
3484	3484	21 and operated exclusively for educational purposes" means
3485	3485	22 all tax-supported public schools, private schools that
3486	3486	23 offer systematic instruction in useful branches of
3487	3487	24 learning by methods common to public schools and that
3488	3488	25 compare favorably in their scope and intensity with the
3489	3489	26 course of study presented in tax-supported schools, and
3490	3490
3491	3491
3492	3492
3493	3493
3494	3494
3495	3495	SB2188 - 96 - LRB103 26023 HLH 52377 b
3496	3496
3497	3497
3498	3498	SB2188- 97 -LRB103 26023 HLH 52377 b SB2188 - 97 - LRB103 26023 HLH 52377 b
3499	3499	SB2188 - 97 - LRB103 26023 HLH 52377 b
3500	3500	1 vocational or technical schools or institutes organized
3501	3501	2 and operated exclusively to provide a course of study of
3502	3502	3 not less than 6 weeks duration and designed to prepare
3503	3503	4 individuals to follow a trade or to pursue a manual,
3504	3504	5 technical, mechanical, industrial, business, or commercial
3505	3505	6 occupation.
3506	3506	7 (34) Beginning January 1, 2000, personal property,
3507	3507	8 including food, purchased through fundraising events for
3508	3508	9 the benefit of a public or private elementary or secondary
3509	3509	10 school, a group of those schools, or one or more school
3510	3510	11 districts if the events are sponsored by an entity
3511	3511	12 recognized by the school district that consists primarily
3512	3512	13 of volunteers and includes parents and teachers of the
3513	3513	14 school children. This paragraph does not apply to
3514	3514	15 fundraising events (i) for the benefit of private home
3515	3515	16 instruction or (ii) for which the fundraising entity
3516	3516	17 purchases the personal property sold at the events from
3517	3517	18 another individual or entity that sold the property for
3518	3518	19 the purpose of resale by the fundraising entity and that
3519	3519	20 profits from the sale to the fundraising entity. This
3520	3520	21 paragraph is exempt from the provisions of Section 2-70.
3521	3521	22 (35) Beginning January 1, 2000 and through December
3522	3522	23 31, 2001, new or used automatic vending machines that
3523	3523	24 prepare and serve hot food and beverages, including
3524	3524	25 coffee, soup, and other items, and replacement parts for
3525	3525	26 these machines. Beginning January 1, 2002 and through June
3526	3526
3527	3527
3528	3528
3529	3529
3530	3530
3531	3531	SB2188 - 97 - LRB103 26023 HLH 52377 b
3532	3532
3533	3533
3534	3534	SB2188- 98 -LRB103 26023 HLH 52377 b SB2188 - 98 - LRB103 26023 HLH 52377 b
3535	3535	SB2188 - 98 - LRB103 26023 HLH 52377 b
3536	3536	1 30, 2003, machines and parts for machines used in
3537	3537	2 commercial, coin-operated amusement and vending business
3538	3538	3 if a use or occupation tax is paid on the gross receipts
3539	3539	4 derived from the use of the commercial, coin-operated
3540	3540	5 amusement and vending machines. This paragraph is exempt
3541	3541	6 from the provisions of Section 2-70.
3542	3542	7 (35-5) Beginning August 23, 2001 and through June 30,
3543	3543	8 2016, food for human consumption that is to be consumed
3544	3544	9 off the premises where it is sold (other than alcoholic
3545	3545	10 beverages, soft drinks, and food that has been prepared
3546	3546	11 for immediate consumption) and prescription and
3547	3547	12 nonprescription medicines, drugs, medical appliances, and
3548	3548	13 insulin, urine testing materials, syringes, and needles
3549	3549	14 used by diabetics, for human use, when purchased for use
3550	3550	15 by a person receiving medical assistance under Article V
3551	3551	16 of the Illinois Public Aid Code who resides in a licensed
3552	3552	17 long-term care facility, as defined in the Nursing Home
3553	3553	18 Care Act, or a licensed facility as defined in the ID/DD
3554	3554	19 Community Care Act, the MC/DD Act, or the Specialized
3555	3555	20 Mental Health Rehabilitation Act of 2013.
3556	3556	21 (36) Beginning August 2, 2001, computers and
3557	3557	22 communications equipment utilized for any hospital purpose
3558	3558	23 and equipment used in the diagnosis, analysis, or
3559	3559	24 treatment of hospital patients sold to a lessor who leases
3560	3560	25 the equipment, under a lease of one year or longer
3561	3561	26 executed or in effect at the time of the purchase, to a
3562	3562
3563	3563
3564	3564
3565	3565
3566	3566
3567	3567	SB2188 - 98 - LRB103 26023 HLH 52377 b
3568	3568
3569	3569
3570	3570	SB2188- 99 -LRB103 26023 HLH 52377 b SB2188 - 99 - LRB103 26023 HLH 52377 b
3571	3571	SB2188 - 99 - LRB103 26023 HLH 52377 b
3572	3572	1 hospital that has been issued an active tax exemption
3573	3573	2 identification number by the Department under Section 1g
3574	3574	3 of this Act. This paragraph is exempt from the provisions
3575	3575	4 of Section 2-70.
3576	3576	5 (37) Beginning August 2, 2001, personal property sold
3577	3577	6 to a lessor who leases the property, under a lease of one
3578	3578	7 year or longer executed or in effect at the time of the
3579	3579	8 purchase, to a governmental body that has been issued an
3580	3580	9 active tax exemption identification number by the
3581	3581	10 Department under Section 1g of this Act. This paragraph is
3582	3582	11 exempt from the provisions of Section 2-70.
3583	3583	12 (38) Beginning on January 1, 2002 and through June 30,
3584	3584	13 2016, tangible personal property purchased from an
3585	3585	14 Illinois retailer by a taxpayer engaged in centralized
3586	3586	15 purchasing activities in Illinois who will, upon receipt
3587	3587	16 of the property in Illinois, temporarily store the
3588	3588	17 property in Illinois (i) for the purpose of subsequently
3589	3589	18 transporting it outside this State for use or consumption
3590	3590	19 thereafter solely outside this State or (ii) for the
3591	3591	20 purpose of being processed, fabricated, or manufactured
3592	3592	21 into, attached to, or incorporated into other tangible
3593	3593	22 personal property to be transported outside this State and
3594	3594	23 thereafter used or consumed solely outside this State. The
3595	3595	24 Director of Revenue shall, pursuant to rules adopted in
3596	3596	25 accordance with the Illinois Administrative Procedure Act,
3597	3597	26 issue a permit to any taxpayer in good standing with the
3598	3598
3599	3599
3600	3600
3601	3601
3602	3602
3603	3603	SB2188 - 99 - LRB103 26023 HLH 52377 b
3604	3604
3605	3605
3606	3606	SB2188- 100 -LRB103 26023 HLH 52377 b SB2188 - 100 - LRB103 26023 HLH 52377 b
3607	3607	SB2188 - 100 - LRB103 26023 HLH 52377 b
3608	3608	1 Department who is eligible for the exemption under this
3609	3609	2 paragraph (38). The permit issued under this paragraph
3610	3610	3 (38) shall authorize the holder, to the extent and in the
3611	3611	4 manner specified in the rules adopted under this Act, to
3612	3612	5 purchase tangible personal property from a retailer exempt
3613	3613	6 from the taxes imposed by this Act. Taxpayers shall
3614	3614	7 maintain all necessary books and records to substantiate
3615	3615	8 the use and consumption of all such tangible personal
3616	3616	9 property outside of the State of Illinois.
3617	3617	10 (39) Beginning January 1, 2008, tangible personal
3618	3618	11 property used in the construction or maintenance of a
3619	3619	12 community water supply, as defined under Section 3.145 of
3620	3620	13 the Environmental Protection Act, that is operated by a
3621	3621	14 not-for-profit corporation that holds a valid water supply
3622	3622	15 permit issued under Title IV of the Environmental
3623	3623	16 Protection Act. This paragraph is exempt from the
3624	3624	17 provisions of Section 2-70.
3625	3625	18 (40) Beginning January 1, 2010 and continuing through
3626	3626	19 December 31, 2024, materials, parts, equipment,
3627	3627	20 components, and furnishings incorporated into or upon an
3628	3628	21 aircraft as part of the modification, refurbishment,
3629	3629	22 completion, replacement, repair, or maintenance of the
3630	3630	23 aircraft. This exemption includes consumable supplies used
3631	3631	24 in the modification, refurbishment, completion,
3632	3632	25 replacement, repair, and maintenance of aircraft, but
3633	3633	26 excludes any materials, parts, equipment, components, and
3634	3634
3635	3635
3636	3636
3637	3637
3638	3638
3639	3639	SB2188 - 100 - LRB103 26023 HLH 52377 b
3640	3640
3641	3641
3642	3642	SB2188- 101 -LRB103 26023 HLH 52377 b SB2188 - 101 - LRB103 26023 HLH 52377 b
3643	3643	SB2188 - 101 - LRB103 26023 HLH 52377 b
3644	3644	1 consumable supplies used in the modification, replacement,
3645	3645	2 repair, and maintenance of aircraft engines or power
3646	3646	3 plants, whether such engines or power plants are installed
3647	3647	4 or uninstalled upon any such aircraft. "Consumable
3648	3648	5 supplies" include, but are not limited to, adhesive, tape,
3649	3649	6 sandpaper, general purpose lubricants, cleaning solution,
3650	3650	7 latex gloves, and protective films. This exemption applies
3651	3651	8 only to the sale of qualifying tangible personal property
3652	3652	9 to persons who modify, refurbish, complete, replace, or
3653	3653	10 maintain an aircraft and who (i) hold an Air Agency
3654	3654	11 Certificate and are empowered to operate an approved
3655	3655	12 repair station by the Federal Aviation Administration,
3656	3656	13 (ii) have a Class IV Rating, and (iii) conduct operations
3657	3657	14 in accordance with Part 145 of the Federal Aviation
3658	3658	15 Regulations. The exemption does not include aircraft
3659	3659	16 operated by a commercial air carrier providing scheduled
3660	3660	17 passenger air service pursuant to authority issued under
3661	3661	18 Part 121 or Part 129 of the Federal Aviation Regulations.
3662	3662	19 The changes made to this paragraph (40) by Public Act
3663	3663	20 98-534 are declarative of existing law. It is the intent
3664	3664	21 of the General Assembly that the exemption under this
3665	3665	22 paragraph (40) applies continuously from January 1, 2010
3666	3666	23 through December 31, 2024; however, no claim for credit or
3667	3667	24 refund is allowed for taxes paid as a result of the
3668	3668	25 disallowance of this exemption on or after January 1, 2015
3669	3669	26 and prior to February 5, 2020 (the effective date of
3670	3670
3671	3671
3672	3672
3673	3673
3674	3674
3675	3675	SB2188 - 101 - LRB103 26023 HLH 52377 b
3676	3676
3677	3677
3678	3678	SB2188- 102 -LRB103 26023 HLH 52377 b SB2188 - 102 - LRB103 26023 HLH 52377 b
3679	3679	SB2188 - 102 - LRB103 26023 HLH 52377 b
3680	3680	1 Public Act 101-629) this amendatory Act of the 101st
3681	3681	2 General Assembly.
3682	3682	3 (41) Tangible personal property sold to a
3683	3683	4 public-facilities corporation, as described in Section
3684	3684	5 11-65-10 of the Illinois Municipal Code, for purposes of
3685	3685	6 constructing or furnishing a municipal convention hall,
3686	3686	7 but only if the legal title to the municipal convention
3687	3687	8 hall is transferred to the municipality without any
3688	3688	9 further consideration by or on behalf of the municipality
3689	3689	10 at the time of the completion of the municipal convention
3690	3690	11 hall or upon the retirement or redemption of any bonds or
3691	3691	12 other debt instruments issued by the public-facilities
3692	3692	13 corporation in connection with the development of the
3693	3693	14 municipal convention hall. This exemption includes
3694	3694	15 existing public-facilities corporations as provided in
3695	3695	16 Section 11-65-25 of the Illinois Municipal Code. This
3696	3696	17 paragraph is exempt from the provisions of Section 2-70.
3697	3697	18 (42) Beginning January 1, 2017 and through December
3698	3698	19 31, 2026, menstrual pads, tampons, and menstrual cups.
3699	3699	20 (43) Merchandise that is subject to the Rental
3700	3700	21 Purchase Agreement Occupation and Use Tax. The purchaser
3701	3701	22 must certify that the item is purchased to be rented
3702	3702	23 subject to a rental purchase agreement, as defined in the
3703	3703	24 Rental Purchase Agreement Act, and provide proof of
3704	3704	25 registration under the Rental Purchase Agreement
3705	3705	26 Occupation and Use Tax Act. This paragraph is exempt from
3706	3706
3707	3707
3708	3708
3709	3709
3710	3710
3711	3711	SB2188 - 102 - LRB103 26023 HLH 52377 b
3712	3712
3713	3713
3714	3714	SB2188- 103 -LRB103 26023 HLH 52377 b SB2188 - 103 - LRB103 26023 HLH 52377 b
3715	3715	SB2188 - 103 - LRB103 26023 HLH 52377 b
3716	3716	1 the provisions of Section 2-70.
3717	3717	2 (44) Qualified tangible personal property used in the
3718	3718	3 construction or operation of a data center that has been
3719	3719	4 granted a certificate of exemption by the Department of
3720	3720	5 Commerce and Economic Opportunity, whether that tangible
3721	3721	6 personal property is purchased by the owner, operator, or
3722	3722	7 tenant of the data center or by a contractor or
3723	3723	8 subcontractor of the owner, operator, or tenant. Data
3724	3724	9 centers that would have qualified for a certificate of
3725	3725	10 exemption prior to January 1, 2020 had Public Act 101-31
3726	3726	11 this amendatory Act of the 101st General Assembly been in
3727	3727	12 effect, may apply for and obtain an exemption for
3728	3728	13 subsequent purchases of computer equipment or enabling
3729	3729	14 software purchased or leased to upgrade, supplement, or
3730	3730	15 replace computer equipment or enabling software purchased
3731	3731	16 or leased in the original investment that would have
3732	3732	17 qualified.
3733	3733	18 The Department of Commerce and Economic Opportunity
3734	3734	19 shall grant a certificate of exemption under this item
3735	3735	20 (44) to qualified data centers as defined by Section
3736	3736	21 605-1025 of the Department of Commerce and Economic
3737	3737	22 Opportunity Law of the Civil Administrative Code of
3738	3738	23 Illinois.
3739	3739	24 For the purposes of this item (44):
3740	3740	25 "Data center" means a building or a series of
3741	3741	26 buildings rehabilitated or constructed to house
3742	3742
3743	3743
3744	3744
3745	3745
3746	3746
3747	3747	SB2188 - 103 - LRB103 26023 HLH 52377 b
3748	3748
3749	3749
3750	3750	SB2188- 104 -LRB103 26023 HLH 52377 b SB2188 - 104 - LRB103 26023 HLH 52377 b
3751	3751	SB2188 - 104 - LRB103 26023 HLH 52377 b
3752	3752	1 working servers in one physical location or multiple
3753	3753	2 sites within the State of Illinois.
3754	3754	3 "Qualified tangible personal property" means:
3755	3755	4 electrical systems and equipment; climate control and
3756	3756	5 chilling equipment and systems; mechanical systems and
3757	3757	6 equipment; monitoring and secure systems; emergency
3758	3758	7 generators; hardware; computers; servers; data storage
3759	3759	8 devices; network connectivity equipment; racks;
3760	3760	9 cabinets; telecommunications cabling infrastructure;
3761	3761	10 raised floor systems; peripheral components or
3762	3762	11 systems; software; mechanical, electrical, or plumbing
3763	3763	12 systems; battery systems; cooling systems and towers;
3764	3764	13 temperature control systems; other cabling; and other
3765	3765	14 data center infrastructure equipment and systems
3766	3766	15 necessary to operate qualified tangible personal
3767	3767	16 property, including fixtures; and component parts of
3768	3768	17 any of the foregoing, including installation,
3769	3769	18 maintenance, repair, refurbishment, and replacement of
3770	3770	19 qualified tangible personal property to generate,
3771	3771	20 transform, transmit, distribute, or manage electricity
3772	3772	21 necessary to operate qualified tangible personal
3773	3773	22 property; and all other tangible personal property
3774	3774	23 that is essential to the operations of a computer data
3775	3775	24 center. The term "qualified tangible personal
3776	3776	25 property" also includes building materials physically
3777	3777	26 incorporated into the qualifying data center. To
3778	3778
3779	3779
3780	3780
3781	3781
3782	3782
3783	3783	SB2188 - 104 - LRB103 26023 HLH 52377 b
3784	3784
3785	3785
3786	3786	SB2188- 105 -LRB103 26023 HLH 52377 b SB2188 - 105 - LRB103 26023 HLH 52377 b
3787	3787	SB2188 - 105 - LRB103 26023 HLH 52377 b
3788	3788	1 document the exemption allowed under this Section, the
3789	3789	2 retailer must obtain from the purchaser a copy of the
3790	3790	3 certificate of eligibility issued by the Department of
3791	3791	4 Commerce and Economic Opportunity.
3792	3792	5 This item (44) is exempt from the provisions of
3793	3793	6 Section 2-70.
3794	3794	7 (45) Beginning January 1, 2020 and through December
3795	3795	8 31, 2020, sales of tangible personal property made by a
3796	3796	9 marketplace seller over a marketplace for which tax is due
3797	3797	10 under this Act but for which use tax has been collected and
3798	3798	11 remitted to the Department by a marketplace facilitator
3799	3799	12 under Section 2d of the Use Tax Act are exempt from tax
3800	3800	13 under this Act. A marketplace seller claiming this
3801	3801	14 exemption shall maintain books and records demonstrating
3802	3802	15 that the use tax on such sales has been collected and
3803	3803	16 remitted by a marketplace facilitator. Marketplace sellers
3804	3804	17 that have properly remitted tax under this Act on such
3805	3805	18 sales may file a claim for credit as provided in Section 6
3806	3806	19 of this Act. No claim is allowed, however, for such taxes
3807	3807	20 for which a credit or refund has been issued to the
3808	3808	21 marketplace facilitator under the Use Tax Act, or for
3809	3809	22 which the marketplace facilitator has filed a claim for
3810	3810	23 credit or refund under the Use Tax Act.
3811	3811	24 (46) Beginning July 1, 2022, breast pumps, breast pump
3812	3812	25 collection and storage supplies, and breast pump kits.
3813	3813	26 This item (46) is exempt from the provisions of Section
3814	3814
3815	3815
3816	3816
3817	3817
3818	3818
3819	3819	SB2188 - 105 - LRB103 26023 HLH 52377 b
3820	3820
3821	3821
3822	3822	SB2188- 106 -LRB103 26023 HLH 52377 b SB2188 - 106 - LRB103 26023 HLH 52377 b
3823	3823	SB2188 - 106 - LRB103 26023 HLH 52377 b
3824	3824	1 2-70. As used in this item (46):
3825	3825	2 "Breast pump" means an electrically controlled or
3826	3826	3 manually controlled pump device designed or marketed to be
3827	3827	4 used to express milk from a human breast during lactation,
3828	3828	5 including the pump device and any battery, AC adapter, or
3829	3829	6 other power supply unit that is used to power the pump
3830	3830	7 device and is packaged and sold with the pump device at the
3831	3831	8 time of sale.
3832	3832	9 "Breast pump collection and storage supplies" means
3833	3833	10 items of tangible personal property designed or marketed
3834	3834	11 to be used in conjunction with a breast pump to collect
3835	3835	12 milk expressed from a human breast and to store collected
3836	3836	13 milk until it is ready for consumption.
3837	3837	14 "Breast pump collection and storage supplies"
3838	3838	15 includes, but is not limited to: breast shields and breast
3839	3839	16 shield connectors; breast pump tubes and tubing adapters;
3840	3840	17 breast pump valves and membranes; backflow protectors and
3841	3841	18 backflow protector adaptors; bottles and bottle caps
3842	3842	19 specific to the operation of the breast pump; and breast
3843	3843	20 milk storage bags.
3844	3844	21 "Breast pump collection and storage supplies" does not
3845	3845	22 include: (1) bottles and bottle caps not specific to the
3846	3846	23 operation of the breast pump; (2) breast pump travel bags
3847	3847	24 and other similar carrying accessories, including ice
3848	3848	25 packs, labels, and other similar products; (3) breast pump
3849	3849	26 cleaning supplies; (4) nursing bras, bra pads, breast
3850	3850
3851	3851
3852	3852
3853	3853
3854	3854
3855	3855	SB2188 - 106 - LRB103 26023 HLH 52377 b
3856	3856
3857	3857
3858	3858	SB2188- 107 -LRB103 26023 HLH 52377 b SB2188 - 107 - LRB103 26023 HLH 52377 b
3859	3859	SB2188 - 107 - LRB103 26023 HLH 52377 b
3860	3860	1 shells, and other similar products; and (5) creams,
3861	3861	2 ointments, and other similar products that relieve
3862	3862	3 breastfeeding-related symptoms or conditions of the
3863	3863	4 breasts or nipples, unless sold as part of a breast pump
3864	3864	5 kit that is pre-packaged by the breast pump manufacturer
3865	3865	6 or distributor.
3866	3866	7 "Breast pump kit" means a kit that: (1) contains no
3867	3867	8 more than a breast pump, breast pump collection and
3868	3868	9 storage supplies, a rechargeable battery for operating the
3869	3869	10 breast pump, a breastmilk cooler, bottle stands, ice
3870	3870	11 packs, and a breast pump carrying case; and (2) is
3871	3871	12 pre-packaged as a breast pump kit by the breast pump
3872	3872	13 manufacturer or distributor.
3873	3873	14 (47) (46) Tangible personal property sold by or on
3874	3874	15 behalf of the State Treasurer pursuant to the Revised
3875	3875	16 Uniform Unclaimed Property Act. This item (47) (46) is
3876	3876	17 exempt from the provisions of Section 2-70.
3877	3877	18 (48) Beginning July 1, 2023, prescription medicines
3878	3878	19 and medical devices (including, but not limited to,
3879	3879	20 products classified as Class III medical devices by the
3880	3880	21 United States Food and Drug Administration that are used
3881	3881	22 for cancer treatment pursuant to a prescription, as well
3882	3882	23 as any accessories and components related to those
3883	3883	24 devices). This item (48) is exempt from the provisions of
3884	3884	25 Section 2-70.
3885	3885	26 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
3886	3886
3887	3887
3888	3888
3889	3889
3890	3890
3891	3891	SB2188 - 107 - LRB103 26023 HLH 52377 b
3892	3892
3893	3893
3894	3894	SB2188- 108 -LRB103 26023 HLH 52377 b SB2188 - 108 - LRB103 26023 HLH 52377 b
3895	3895	SB2188 - 108 - LRB103 26023 HLH 52377 b
3896	3896	1 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
3897	3897	2 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
3898	3898	3 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
3899	3899	4 eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
3900	3900	5 (35 ILCS 120/2-10)
3901	3901	6 Sec. 2-10. Rate of tax. Unless otherwise provided in this
3902	3902	7 Section, the tax imposed by this Act is at the rate of 6.25% of
3903	3903	8 gross receipts from sales of tangible personal property made
3904	3904	9 in the course of business.
3905	3905	10 Beginning on July 1, 2000 and through December 31, 2000,
3906	3906	11 with respect to motor fuel, as defined in Section 1.1 of the
3907	3907	12 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3908	3908	13 the Use Tax Act, the tax is imposed at the rate of 1.25%.
3909	3909	14 Beginning on August 6, 2010 through August 15, 2010, and
3910	3910	15 beginning again on August 5, 2022 through August 14, 2022,
3911	3911	16 with respect to sales tax holiday items as defined in Section
3912	3912	17 2-8 of this Act, the tax is imposed at the rate of 1.25%.
3913	3913	18 Within 14 days after July 1, 2000 (the effective date of
3914	3914	19 Public Act 91-872) this amendatory Act of the 91st General
3915	3915	20 Assembly, each retailer of motor fuel and gasohol shall cause
3916	3916	21 the following notice to be posted in a prominently visible
3917	3917	22 place on each retail dispensing device that is used to
3918	3918	23 dispense motor fuel or gasohol in the State of Illinois: "As of
3919	3919	24 July 1, 2000, the State of Illinois has eliminated the State's
3920	3920	25 share of sales tax on motor fuel and gasohol through December
3921	3921
3922	3922
3923	3923
3924	3924
3925	3925
3926	3926	SB2188 - 108 - LRB103 26023 HLH 52377 b
3927	3927
3928	3928
3929	3929	SB2188- 109 -LRB103 26023 HLH 52377 b SB2188 - 109 - LRB103 26023 HLH 52377 b
3930	3930	SB2188 - 109 - LRB103 26023 HLH 52377 b
3931	3931	1 31, 2000. The price on this pump should reflect the
3932	3932	2 elimination of the tax." The notice shall be printed in bold
3933	3933	3 print on a sign that is no smaller than 4 inches by 8 inches.
3934	3934	4 The sign shall be clearly visible to customers. Any retailer
3935	3935	5 who fails to post or maintain a required sign through December
3936	3936	6 31, 2000 is guilty of a petty offense for which the fine shall
3937	3937	7 be $500 per day per each retail premises where a violation
3938	3938	8 occurs.
3939	3939	9 With respect to gasohol, as defined in the Use Tax Act, the
3940	3940	10 tax imposed by this Act applies to (i) 70% of the proceeds of
3941	3941	11 sales made on or after January 1, 1990, and before July 1,
3942	3942	12 2003, (ii) 80% of the proceeds of sales made on or after July
3943	3943	13 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
3944	3944	14 proceeds of sales made thereafter. If, at any time, however,
3945	3945	15 the tax under this Act on sales of gasohol, as defined in the
3946	3946	16 Use Tax Act, is imposed at the rate of 1.25%, then the tax
3947	3947	17 imposed by this Act applies to 100% of the proceeds of sales of
3948	3948	18 gasohol made during that time.
3949	3949	19 With respect to majority blended ethanol fuel, as defined
3950	3950	20 in the Use Tax Act, the tax imposed by this Act does not apply
3951	3951	21 to the proceeds of sales made on or after July 1, 2003 and on
3952	3952	22 or before December 31, 2023 but applies to 100% of the proceeds
3953	3953	23 of sales made thereafter.
3954	3954	24 With respect to biodiesel blends, as defined in the Use
3955	3955	25 Tax Act, with no less than 1% and no more than 10% biodiesel,
3956	3956	26 the tax imposed by this Act applies to (i) 80% of the proceeds
3957	3957
3958	3958
3959	3959
3960	3960
3961	3961
3962	3962	SB2188 - 109 - LRB103 26023 HLH 52377 b
3963	3963
3964	3964
3965	3965	SB2188- 110 -LRB103 26023 HLH 52377 b SB2188 - 110 - LRB103 26023 HLH 52377 b
3966	3966	SB2188 - 110 - LRB103 26023 HLH 52377 b
3967	3967	1 of sales made on or after July 1, 2003 and on or before
3968	3968	2 December 31, 2018 and (ii) 100% of the proceeds of sales made
3969	3969	3 after December 31, 2018 and before January 1, 2024. On and
3970	3970	4 after January 1, 2024 and on or before December 31, 2030, the
3971	3971	5 taxation of biodiesel, renewable diesel, and biodiesel blends
3972	3972	6 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
3973	3973	7 at any time, however, the tax under this Act on sales of
3974	3974	8 biodiesel blends, as defined in the Use Tax Act, with no less
3975	3975	9 than 1% and no more than 10% biodiesel is imposed at the rate
3976	3976	10 of 1.25%, then the tax imposed by this Act applies to 100% of
3977	3977	11 the proceeds of sales of biodiesel blends with no less than 1%
3978	3978	12 and no more than 10% biodiesel made during that time.
3979	3979	13 With respect to biodiesel, as defined in the Use Tax Act,
3980	3980	14 and biodiesel blends, as defined in the Use Tax Act, with more
3981	3981	15 than 10% but no more than 99% biodiesel, the tax imposed by
3982	3982	16 this Act does not apply to the proceeds of sales made on or
3983	3983	17 after July 1, 2003 and on or before December 31, 2023. On and
3984	3984	18 after January 1, 2024 and on or before December 31, 2030, the
3985	3985	19 taxation of biodiesel, renewable diesel, and biodiesel blends
3986	3986	20 shall be as provided in Section 3-5.1 of the Use Tax Act.
3987	3987	21 Until July 1, 2022 and beginning again on July 1, 2023,
3988	3988	22 with respect to food for human consumption that is to be
3989	3989	23 consumed off the premises where it is sold (other than
3990	3990	24 alcoholic beverages, food consisting of or infused with adult
3991	3991	25 use cannabis, soft drinks, and food that has been prepared for
3992	3992	26 immediate consumption), the tax is imposed at the rate of 1%.
3993	3993
3994	3994
3995	3995
3996	3996
3997	3997
3998	3998	SB2188 - 110 - LRB103 26023 HLH 52377 b
3999	3999
4000	4000
4001	4001	SB2188- 111 -LRB103 26023 HLH 52377 b SB2188 - 111 - LRB103 26023 HLH 52377 b
4002	4002	SB2188 - 111 - LRB103 26023 HLH 52377 b
4003	4003	1 Beginning July 1, 2022 and until July 1, 2023, with respect to
4004	4004	2 food for human consumption that is to be consumed off the
4005	4005	3 premises where it is sold (other than alcoholic beverages,
4006	4006	4 food consisting of or infused with adult use cannabis, soft
4007	4007	5 drinks, and food that has been prepared for immediate
4008	4008	6 consumption), the tax is imposed at the rate of 0%.
4009	4009	7 With respect to prescription and nonprescription medicines
4010	4010	8 and , drugs, medical appliances that are not exempt under item
4011	4011	9 (48) of Section 2-5, products classified as Class III medical
4012	4012	10 devices by the United States Food and Drug Administration that
4013	4013	11 are used for cancer treatment pursuant to a prescription, as
4014	4014	12 well as any accessories and components related to those
4015	4015	13 devices, modifications to a motor vehicle for the purpose of
4016	4016	14 rendering it usable by a person with a disability, and
4017	4017	15 insulin, blood sugar testing materials, syringes, and needles
4018	4018	16 used by human diabetics, the tax is imposed at the rate of 1%.
4019	4019	17 For the purposes of this Section, until September 1, 2009: the
4020	4020	18 term "soft drinks" means any complete, finished, ready-to-use,
4021	4021	19 non-alcoholic drink, whether carbonated or not, including, but
4022	4022	20 not limited to, soda water, cola, fruit juice, vegetable
4023	4023	21 juice, carbonated water, and all other preparations commonly
4024	4024	22 known as soft drinks of whatever kind or description that are
4025	4025	23 contained in any closed or sealed bottle, can, carton, or
4026	4026	24 container, regardless of size; but "soft drinks" does not
4027	4027	25 include coffee, tea, non-carbonated water, infant formula,
4028	4028	26 milk or milk products as defined in the Grade A Pasteurized
4029	4029
4030	4030
4031	4031
4032	4032
4033	4033
4034	4034	SB2188 - 111 - LRB103 26023 HLH 52377 b
4035	4035
4036	4036
4037	4037	SB2188- 112 -LRB103 26023 HLH 52377 b SB2188 - 112 - LRB103 26023 HLH 52377 b
4038	4038	SB2188 - 112 - LRB103 26023 HLH 52377 b
4039	4039	1 Milk and Milk Products Act, or drinks containing 50% or more
4040	4040	2 natural fruit or vegetable juice.
4041	4041	3 Notwithstanding any other provisions of this Act,
4042	4042	4 beginning September 1, 2009, "soft drinks" means non-alcoholic
4043	4043	5 beverages that contain natural or artificial sweeteners. "Soft
4044	4044	6 drinks" does do not include beverages that contain milk or
4045	4045	7 milk products, soy, rice or similar milk substitutes, or
4046	4046	8 greater than 50% of vegetable or fruit juice by volume.
4047	4047	9 Until August 1, 2009, and notwithstanding any other
4048	4048	10 provisions of this Act, "food for human consumption that is to
4049	4049	11 be consumed off the premises where it is sold" includes all
4050	4050	12 food sold through a vending machine, except soft drinks and
4051	4051	13 food products that are dispensed hot from a vending machine,
4052	4052	14 regardless of the location of the vending machine. Beginning
4053	4053	15 August 1, 2009, and notwithstanding any other provisions of
4054	4054	16 this Act, "food for human consumption that is to be consumed
4055	4055	17 off the premises where it is sold" includes all food sold
4056	4056	18 through a vending machine, except soft drinks, candy, and food
4057	4057	19 products that are dispensed hot from a vending machine,
4058	4058	20 regardless of the location of the vending machine.
4059	4059	21 Notwithstanding any other provisions of this Act,
4060	4060	22 beginning September 1, 2009, "food for human consumption that
4061	4061	23 is to be consumed off the premises where it is sold" does not
4062	4062	24 include candy. For purposes of this Section, "candy" means a
4063	4063	25 preparation of sugar, honey, or other natural or artificial
4064	4064	26 sweeteners in combination with chocolate, fruits, nuts or
4065	4065
4066	4066
4067	4067
4068	4068
4069	4069
4070	4070	SB2188 - 112 - LRB103 26023 HLH 52377 b
4071	4071
4072	4072
4073	4073	SB2188- 113 -LRB103 26023 HLH 52377 b SB2188 - 113 - LRB103 26023 HLH 52377 b
4074	4074	SB2188 - 113 - LRB103 26023 HLH 52377 b
4075	4075	1 other ingredients or flavorings in the form of bars, drops, or
4076	4076	2 pieces. "Candy" does not include any preparation that contains
4077	4077	3 flour or requires refrigeration.
4078	4078	4 Notwithstanding any other provisions of this Act,
4079	4079	5 beginning September 1, 2009, "nonprescription medicines and
4080	4080	6 drugs" does not include grooming and hygiene products. For
4081	4081	7 purposes of this Section, "grooming and hygiene products"
4082	4082	8 includes, but is not limited to, soaps and cleaning solutions,
4083	4083	9 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4084	4084	10 lotions and screens, unless those products are available by
4085	4085	11 prescription only, regardless of whether the products meet the
4086	4086	12 definition of "over-the-counter-drugs". For the purposes of
4087	4087	13 this paragraph, "over-the-counter-drug" means a drug for human
4088	4088	14 use that contains a label that identifies the product as a drug
4089	4089	15 as required by 21 CFR C.F.R. 201.66. The
4090	4090	16 "over-the-counter-drug" label includes:
4091	4091	17 (A) a A "Drug Facts" panel; or
4092	4092	18 (B) a A statement of the "active ingredient(s)" with a
4093	4093	19 list of those ingredients contained in the compound,
4094	4094	20 substance or preparation.
4095	4095	21 Beginning on January 1, 2014 (the effective date of Public
4096	4096	22 Act 98-122) this amendatory Act of the 98th General Assembly,
4097	4097	23 "prescription and nonprescription medicines and drugs"
4098	4098	24 includes medical cannabis purchased from a registered
4099	4099	25 dispensing organization under the Compassionate Use of Medical
4100	4100	26 Cannabis Program Act.
4101	4101
4102	4102
4103	4103
4104	4104
4105	4105
4106	4106	SB2188 - 113 - LRB103 26023 HLH 52377 b
4107	4107
4108	4108
4109	4109	SB2188- 114 -LRB103 26023 HLH 52377 b SB2188 - 114 - LRB103 26023 HLH 52377 b
4110	4110	SB2188 - 114 - LRB103 26023 HLH 52377 b
4111	4111	1 As used in this Section, "adult use cannabis" means
4112	4112	2 cannabis subject to tax under the Cannabis Cultivation
4113	4113	3 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4114	4114	4 and does not include cannabis subject to tax under the
4115	4115	5 Compassionate Use of Medical Cannabis Program Act.
4116	4116	6 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
4117	4117	7 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
4118	4118	8 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
4119	4119	9 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
4120	4120	10 6-1-22.)
4121	4121	11 Section 99. Effective date. This Act takes effect July 1,
4122	4122	12 2023.
4123	4123
4124	4124
4125	4125
4126	4126
4127	4127
4128	4128	SB2188 - 114 - LRB103 26023 HLH 52377 b