Illinois Senate Bill SB2188 Latest Draft

                            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
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
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
    LRB103 26023 HLH 52377 b
A BILL FOR
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  SB2188  LRB103 26023 HLH 52377 b
1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Sections
5  3-5 and 3-10 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use of the following tangible
8  personal property is exempt from the tax imposed by this Act:
9  (1) Personal property purchased from a corporation,
10  society, association, foundation, institution, or
11  organization, other than a limited liability company, that is
12  organized and operated as a not-for-profit service enterprise
13  for the benefit of persons 65 years of age or older if the
14  personal property was not purchased by the enterprise for the
15  purpose of resale by the enterprise.
16  (2) Personal property purchased by a not-for-profit
17  Illinois county fair association for use in conducting,
18  operating, or promoting the county fair.
19  (3) Personal property purchased by a not-for-profit arts
20  or cultural organization that establishes, by proof required
21  by the Department by rule, that it has received an exemption
22  under Section 501(c)(3) of the Internal Revenue Code and that
23  is organized and operated primarily for the presentation or

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 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
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
    LRB103 26023 HLH 52377 b
A BILL FOR

 

 

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



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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  excluding motor vehicles required to be registered under the
2  Illinois Vehicle Code. The changes made to this Section by
3  Public Act 97-767 apply on and after July 1, 2003, but no claim
4  for credit or refund is allowed on or after August 16, 2013
5  (the effective date of Public Act 98-456) for such taxes paid
6  during the period beginning July 1, 2003 and ending on August
7  16, 2013 (the effective date of Public Act 98-456).
8  (17) Until July 1, 2003, distillation machinery and
9  equipment, sold as a unit or kit, assembled or installed by the
10  retailer, certified by the user to be used only for the
11  production of ethyl alcohol that will be used for consumption
12  as motor fuel or as a component of motor fuel for the personal
13  use of the user, and not subject to sale or resale.
14  (18) Manufacturing and assembling machinery and equipment
15  used primarily in the process of manufacturing or assembling
16  tangible personal property for wholesale or retail sale or
17  lease, whether that sale or lease is made directly by the
18  manufacturer or by some other person, whether the materials
19  used in the process are owned by the manufacturer or some other
20  person, or whether that sale or lease is made apart from or as
21  an incident to the seller's engaging in the service occupation
22  of producing machines, tools, dies, jigs, patterns, gauges, or
23  other similar items of no commercial value on special order
24  for a particular purchaser. The exemption provided by this
25  paragraph (18) includes production related tangible personal
26  property, as defined in Section 3-50, purchased on or after

 

 

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

 

 

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

 

 

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1  for any reason, the lessor is liable to pay that amount to the
2  Department.
3  (23) Personal property purchased by a lessor who leases
4  the property, under a lease of one year or longer executed or
5  in effect at the time the lessor would otherwise be subject to
6  the tax imposed by this Act, to a governmental body that has
7  been issued an active sales tax exemption identification
8  number by the Department under Section 1g of the Retailers'
9  Occupation Tax Act. If the property is leased in a manner that
10  does not qualify for this exemption or used in any other
11  non-exempt manner, the lessor shall be liable for the tax
12  imposed under this Act or the Service Use Tax Act, as the case
13  may be, based on the fair market value of the property at the
14  time the non-qualifying use occurs. No lessor shall collect or
15  attempt to collect an amount (however designated) that
16  purports to reimburse that lessor for the tax imposed by this
17  Act or the Service Use Tax Act, as the case may be, if the tax
18  has not been paid by the lessor. If a lessor improperly
19  collects any such amount from the lessee, the lessee shall
20  have a legal right to claim a refund of that amount from the
21  lessor. If, however, that amount is not refunded to the lessee
22  for any reason, the lessor is liable to pay that amount to the
23  Department.
24  (24) Beginning with taxable years ending on or after
25  December 31, 1995 and ending with taxable years ending on or
26  before December 31, 2004, personal property that is donated

 

 

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1  for disaster relief to be used in a State or federally declared
2  disaster area in Illinois or bordering Illinois by a
3  manufacturer or retailer that is registered in this State to a
4  corporation, society, association, foundation, or institution
5  that has been issued a sales tax exemption identification
6  number by the Department that assists victims of the disaster
7  who reside within the declared disaster area.
8  (25) Beginning with taxable years ending on or after
9  December 31, 1995 and ending with taxable years ending on or
10  before December 31, 2004, personal property that is used in
11  the performance of infrastructure repairs in this State,
12  including but not limited to municipal roads and streets,
13  access roads, bridges, sidewalks, waste disposal systems,
14  water and sewer line extensions, water distribution and
15  purification facilities, storm water drainage and retention
16  facilities, and sewage treatment facilities, resulting from a
17  State or federally declared disaster in Illinois or bordering
18  Illinois when such repairs are initiated on facilities located
19  in the declared disaster area within 6 months after the
20  disaster.
21  (26) Beginning July 1, 1999, game or game birds purchased
22  at a "game breeding and hunting preserve area" as that term is
23  used in the Wildlife Code. This paragraph is exempt from the
24  provisions of Section 3-90.
25  (27) A motor vehicle, as that term is defined in Section
26  1-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  with a gross vehicle weight in excess of 8,000 pounds and that
2  are subject to the commercial distribution fee imposed under
3  Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4  July 1, 2004 and through June 30, 2005, the use in this State
5  of motor vehicles of the second division: (i) with a gross
6  vehicle weight rating in excess of 8,000 pounds; (ii) that are
7  subject to the commercial distribution fee imposed under
8  Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9  are primarily used for commercial purposes. Through June 30,
10  2005, this exemption applies to repair and replacement parts
11  added after the initial purchase of such a motor vehicle if
12  that motor vehicle is used in a manner that would qualify for
13  the rolling stock exemption otherwise provided for in this
14  Act. For purposes of this paragraph, the term "used for
15  commercial purposes" means the transportation of persons or
16  property in furtherance of any commercial or industrial
17  enterprise, whether for-hire or not.
18  (34) Beginning January 1, 2008, tangible personal property
19  used in the construction or maintenance of a community water
20  supply, as defined under Section 3.145 of the Environmental
21  Protection Act, that is operated by a not-for-profit
22  corporation that holds a valid water supply permit issued
23  under Title IV of the Environmental Protection Act. This
24  paragraph is exempt from the provisions of Section 3-90.
25  (35) Beginning January 1, 2010 and continuing through
26  December 31, 2024, materials, parts, equipment, components,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  includes, but is not limited to: breast shields and breast
2  shield connectors; breast pump tubes and tubing adapters;
3  breast pump valves and membranes; backflow protectors and
4  backflow protector adaptors; bottles and bottle caps
5  specific to the operation of the breast pump; and breast
6  milk storage bags.
7  "Breast pump collection and storage supplies" does not
8  include: (1) bottles and bottle caps not specific to the
9  operation of the breast pump; (2) breast pump travel bags
10  and other similar carrying accessories, including ice
11  packs, labels, and other similar products; (3) breast pump
12  cleaning supplies; (4) nursing bras, bra pads, breast
13  shells, and other similar products; and (5) creams,
14  ointments, and other similar products that relieve
15  breastfeeding-related symptoms or conditions of the
16  breasts or nipples, unless sold as part of a breast pump
17  kit that is pre-packaged by the breast pump manufacturer
18  or distributor.
19  "Breast pump kit" means a kit that: (1) contains no
20  more than a breast pump, breast pump collection and
21  storage supplies, a rechargeable battery for operating the
22  breast pump, a breastmilk cooler, bottle stands, ice
23  packs, and a breast pump carrying case; and (2) is
24  pre-packaged as a breast pump kit by the breast pump
25  manufacturer or distributor.
26  (42) (41) Tangible personal property sold by or on behalf

 

 

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1  of the State Treasurer pursuant to the Revised Uniform
2  Unclaimed Property Act. This item (42) (41) is exempt from the
3  provisions of Section 3-90.
4  (43) Beginning July 1, 2023, prescription medicines and
5  medical devices (including, but not limited to, products
6  classified as Class III medical devices by the United States
7  Food and Drug Administration that are used for cancer
8  treatment pursuant to a prescription, as well as any
9  accessories and components related to those devices). This
10  item (43) is exempt from the provisions of Section 3-90.
11  (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
12  101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
13  6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
14  102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
15  eff. 5-27-22; revised 8-1-22.)
16  (35 ILCS 105/3-10)
17  Sec. 3-10. Rate of tax. Unless otherwise provided in this
18  Section, the tax imposed by this Act is at the rate of 6.25% of
19  either the selling price or the fair market value, if any, of
20  the tangible personal property. In all cases where property
21  functionally used or consumed is the same as the property that
22  was purchased at retail, then the tax is imposed on the selling
23  price of the property. In all cases where property
24  functionally used or consumed is a by-product or waste product
25  that has been refined, manufactured, or produced from property

 

 

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1  purchased at retail, then the tax is imposed on the lower of
2  the fair market value, if any, of the specific property so used
3  in this State or on the selling price of the property purchased
4  at retail. For purposes of this Section "fair market value"
5  means the price at which property would change hands between a
6  willing buyer and a willing seller, neither being under any
7  compulsion to buy or sell and both having reasonable knowledge
8  of the relevant facts. The fair market value shall be
9  established by Illinois sales by the taxpayer of the same
10  property as that functionally used or consumed, or if there
11  are no such sales by the taxpayer, then comparable sales or
12  purchases of property of like kind and character in Illinois.
13  Beginning on July 1, 2000 and through December 31, 2000,
14  with respect to motor fuel, as defined in Section 1.1 of the
15  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16  the Use Tax Act, the tax is imposed at the rate of 1.25%.
17  Beginning on August 6, 2010 through August 15, 2010, and
18  beginning again on August 5, 2022 through August 14, 2022,
19  with respect to sales tax holiday items as defined in Section
20  3-6 of this Act, the tax is imposed at the rate of 1.25%.
21  With respect to gasohol, the tax imposed by this Act
22  applies to (i) 70% of the proceeds of sales made on or after
23  January 1, 1990, and before July 1, 2003, (ii) 80% of the
24  proceeds of sales made on or after July 1, 2003 and on or
25  before July 1, 2017, and (iii) 100% of the proceeds of sales
26  made thereafter. If, at any time, however, the tax under this

 

 

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1  Act on sales of gasohol is imposed at the rate of 1.25%, then
2  the tax imposed by this Act applies to 100% of the proceeds of
3  sales of gasohol made during that time.
4  With respect to majority blended ethanol fuel, the tax
5  imposed by this Act does not apply to the proceeds of sales
6  made on or after July 1, 2003 and on or before December 31,
7  2023 but applies to 100% of the proceeds of sales made
8  thereafter.
9  With respect to biodiesel blends with no less than 1% and
10  no more than 10% biodiesel, the tax imposed by this Act applies
11  to (i) 80% of the proceeds of sales made on or after July 1,
12  2003 and on or before December 31, 2018 and (ii) 100% of the
13  proceeds of sales made after December 31, 2018 and before
14  January 1, 2024. On and after January 1, 2024 and on or before
15  December 31, 2030, the taxation of biodiesel, renewable
16  diesel, and biodiesel blends shall be as provided in Section
17  3-5.1. If, at any time, however, the tax under this Act on
18  sales of biodiesel blends with no less than 1% and no more than
19  10% biodiesel is imposed at the rate of 1.25%, then the tax
20  imposed by this Act applies to 100% of the proceeds of sales of
21  biodiesel blends with no less than 1% and no more than 10%
22  biodiesel made during that time.
23  With respect to biodiesel and biodiesel blends with more
24  than 10% but no more than 99% biodiesel, the tax imposed by
25  this Act does not apply to the proceeds of sales made on or
26  after July 1, 2003 and on or before December 31, 2023. On and

 

 

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1  after January 1, 2024 and on or before December 31, 2030, the
2  taxation of biodiesel, renewable diesel, and biodiesel blends
3  shall be as provided in Section 3-5.1.
4  Until July 1, 2022 and beginning again on July 1, 2023,
5  with respect to food for human consumption that is to be
6  consumed off the premises where it is sold (other than
7  alcoholic beverages, food consisting of or infused with adult
8  use cannabis, soft drinks, and food that has been prepared for
9  immediate consumption), the tax is imposed at the rate of 1%.
10  Beginning on July 1, 2022 and until July 1, 2023, with respect
11  to food for human consumption that is to be consumed off the
12  premises where it is sold (other than alcoholic beverages,
13  food consisting of or infused with adult use cannabis, soft
14  drinks, and food that has been prepared for immediate
15  consumption), the tax is imposed at the rate of 0%.
16  With respect to prescription and nonprescription medicines
17  and drugs , drugs, medical appliances that are not exempt
18  under paragraph (43) of Section 3-5, products classified as
19  Class III medical devices by the United States Food and Drug
20  Administration that are used for cancer treatment pursuant to
21  a prescription, as well as any accessories and components
22  related to those devices, modifications to a motor vehicle for
23  the purpose of rendering it usable by a person with a
24  disability, and insulin, blood sugar testing materials,
25  syringes, and needles used by human diabetics, the tax is
26  imposed at the rate of 1%. For the purposes of this Section,

 

 

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1  until September 1, 2009: the term "soft drinks" means any
2  complete, finished, ready-to-use, non-alcoholic drink, whether
3  carbonated or not, including, but not limited to, soda water,
4  cola, fruit juice, vegetable juice, carbonated water, and all
5  other preparations commonly known as soft drinks of whatever
6  kind or description that are contained in any closed or sealed
7  bottle, can, carton, or container, regardless of size; but
8  "soft drinks" does not include coffee, tea, non-carbonated
9  water, infant formula, milk or milk products as defined in the
10  Grade A Pasteurized Milk and Milk Products Act, or drinks
11  containing 50% or more natural fruit or vegetable juice.
12  Notwithstanding any other provisions of this Act,
13  beginning September 1, 2009, "soft drinks" means non-alcoholic
14  beverages that contain natural or artificial sweeteners. "Soft
15  drinks" does do not include beverages that contain milk or
16  milk products, soy, rice or similar milk substitutes, or
17  greater than 50% of vegetable or fruit juice by volume.
18  Until August 1, 2009, and notwithstanding any other
19  provisions of this Act, "food for human consumption that is to
20  be consumed off the premises where it is sold" includes all
21  food sold through a vending machine, except soft drinks and
22  food products that are dispensed hot from a vending machine,
23  regardless of the location of the vending machine. Beginning
24  August 1, 2009, and notwithstanding any other provisions of
25  this Act, "food for human consumption that is to be consumed
26  off the premises where it is sold" includes all food sold

 

 

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1  through a vending machine, except soft drinks, candy, and food
2  products that are dispensed hot from a vending machine,
3  regardless of the location of the vending machine.
4  Notwithstanding any other provisions of this Act,
5  beginning September 1, 2009, "food for human consumption that
6  is to be consumed off the premises where it is sold" does not
7  include candy. For purposes of this Section, "candy" means a
8  preparation of sugar, honey, or other natural or artificial
9  sweeteners in combination with chocolate, fruits, nuts or
10  other ingredients or flavorings in the form of bars, drops, or
11  pieces. "Candy" does not include any preparation that contains
12  flour or requires refrigeration.
13  Notwithstanding any other provisions of this Act,
14  beginning September 1, 2009, "nonprescription medicines and
15  drugs" does not include grooming and hygiene products. For
16  purposes of this Section, "grooming and hygiene products"
17  includes, but is not limited to, soaps and cleaning solutions,
18  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
19  lotions and screens, unless those products are available by
20  prescription only, regardless of whether the products meet the
21  definition of "over-the-counter-drugs". For the purposes of
22  this paragraph, "over-the-counter-drug" means a drug for human
23  use that contains a label that identifies the product as a drug
24  as required by 21 CFR C.F.R.  201.66. The
25  "over-the-counter-drug" label includes:
26  (A) a A "Drug Facts" panel; or

 

 

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1  (B) a A statement of the "active ingredient(s)" with a
2  list of those ingredients contained in the compound,
3  substance or preparation.
4  Beginning on January 1, 2014 (the effective date of Public
5  Act 98-122) this amendatory Act of the 98th General Assembly,
6  "prescription and nonprescription medicines and drugs"
7  includes medical cannabis purchased from a registered
8  dispensing organization under the Compassionate Use of Medical
9  Cannabis Program Act.
10  As used in this Section, "adult use cannabis" means
11  cannabis subject to tax under the Cannabis Cultivation
12  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13  and does not include cannabis subject to tax under the
14  Compassionate Use of Medical Cannabis Program Act.
15  If the property that is purchased at retail from a
16  retailer is acquired outside Illinois and used outside
17  Illinois before being brought to Illinois for use here and is
18  taxable under this Act, the "selling price" on which the tax is
19  computed shall be reduced by an amount that represents a
20  reasonable allowance for depreciation for the period of prior
21  out-of-state use.
22  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
23  102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
24  4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
25  102-700, Article 65, Section 65-5, eff. 4-19-22; revised
26  5-27-22.)

 

 

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1  Section 10. The Service Use Tax Act is amended by changing
2  Sections 3-5 and 3-10 as follows:
3  (35 ILCS 110/3-5)
4  Sec. 3-5. Exemptions. Use of the following tangible
5  personal property is exempt from the tax imposed by this Act:
6  (1) Personal property purchased from a corporation,
7  society, association, foundation, institution, or
8  organization, other than a limited liability company, that is
9  organized and operated as a not-for-profit service enterprise
10  for the benefit of persons 65 years of age or older if the
11  personal property was not purchased by the enterprise for the
12  purpose of resale by the enterprise.
13  (2) Personal property purchased by a non-profit Illinois
14  county fair association for use in conducting, operating, or
15  promoting the county fair.
16  (3) Personal property purchased by a not-for-profit arts
17  or cultural organization that establishes, by proof required
18  by the Department by rule, that it has received an exemption
19  under Section 501(c)(3) of the Internal Revenue Code and that
20  is organized and operated primarily for the presentation or
21  support of arts or cultural programming, activities, or
22  services. These organizations include, but are not limited to,
23  music and dramatic arts organizations such as symphony
24  orchestras and theatrical groups, arts and cultural service

 

 

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1  organizations, local arts councils, visual arts organizations,
2  and media arts organizations. On and after July 1, 2001 (the
3  effective date of Public Act 92-35), however, an entity
4  otherwise eligible for this exemption shall not make tax-free
5  purchases unless it has an active identification number issued
6  by the Department.
7  (4) Legal tender, currency, medallions, or gold or silver
8  coinage issued by the State of Illinois, the government of the
9  United States of America, or the government of any foreign
10  country, and bullion.
11  (5) Until July 1, 2003 and beginning again on September 1,
12  2004 through August 30, 2014, graphic arts machinery and
13  equipment, including repair and replacement parts, both new
14  and used, and including that manufactured on special order or
15  purchased for lease, certified by the purchaser to be used
16  primarily for graphic arts production. Equipment includes
17  chemicals or chemicals acting as catalysts but only if the
18  chemicals or chemicals acting as catalysts effect a direct and
19  immediate change upon a graphic arts product. Beginning on
20  July 1, 2017, graphic arts machinery and equipment is included
21  in the manufacturing and assembling machinery and equipment
22  exemption under Section 2 of this Act.
23  (6) Personal property purchased from a teacher-sponsored
24  student organization affiliated with an elementary or
25  secondary school located in Illinois.
26  (7) Farm machinery and equipment, both new and used,

 

 

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

 

 

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1  Farm machinery and equipment also includes computers,
2  sensors, software, and related equipment used primarily in the
3  computer-assisted operation of production agriculture
4  facilities, equipment, and activities such as, but not limited
5  to, the collection, monitoring, and correlation of animal and
6  crop data for the purpose of formulating animal diets and
7  agricultural chemicals. This item (7) is exempt from the
8  provisions of Section 3-75.
9  (8) Until June 30, 2013, fuel and petroleum products sold
10  to or used by an air common carrier, certified by the carrier
11  to be used for consumption, shipment, or storage in the
12  conduct of its business as an air common carrier, for a flight
13  destined for or returning from a location or locations outside
14  the United States without regard to previous or subsequent
15  domestic stopovers.
16  Beginning July 1, 2013, fuel and petroleum products sold
17  to or used by an air carrier, certified by the carrier to be
18  used for consumption, shipment, or storage in the conduct of
19  its business as an air common carrier, for a flight that (i) is
20  engaged in foreign trade or is engaged in trade between the
21  United States and any of its possessions and (ii) transports
22  at least one individual or package for hire from the city of
23  origination to the city of final destination on the same
24  aircraft, without regard to a change in the flight number of
25  that aircraft.
26  (9) Proceeds of mandatory service charges separately

 

 

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

 

 

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1  reclamation equipment, including replacement parts and
2  equipment, and including equipment purchased for lease, but
3  excluding motor vehicles required to be registered under the
4  Illinois Vehicle Code. The changes made to this Section by
5  Public Act 97-767 apply on and after July 1, 2003, but no claim
6  for credit or refund is allowed on or after August 16, 2013
7  (the effective date of Public Act 98-456) for such taxes paid
8  during the period beginning July 1, 2003 and ending on August
9  16, 2013 (the effective date of Public Act 98-456).
10  (13) Semen used for artificial insemination of livestock
11  for direct agricultural production.
12  (14) Horses, or interests in horses, registered with and
13  meeting the requirements of any of the Arabian Horse Club
14  Registry of America, Appaloosa Horse Club, American Quarter
15  Horse Association, United States Trotting Association, or
16  Jockey Club, as appropriate, used for purposes of breeding or
17  racing for prizes. This item (14) is exempt from the
18  provisions of Section 3-75, and the exemption provided for
19  under this item (14) applies for all periods beginning May 30,
20  1995, but no claim for credit or refund is allowed on or after
21  January 1, 2008 (the effective date of Public Act 95-88) for
22  such taxes paid during the period beginning May 30, 2000 and
23  ending on January 1, 2008 (the effective date of Public Act
24  95-88).
25  (15) Computers and communications equipment utilized for
26  any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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1  the Department under Section 1g of the Retailers' Occupation
2  Tax Act. If the property is leased in a manner that does not
3  qualify for this exemption or is used in any other non-exempt
4  manner, the lessor shall be liable for the tax imposed under
5  this Act or the Use Tax Act, as the case may be, based on the
6  fair market value of the property at the time the
7  non-qualifying use occurs. No lessor shall collect or attempt
8  to collect an amount (however designated) that purports to
9  reimburse that lessor for the tax imposed by this Act or the
10  Use Tax Act, as the case may be, if the tax has not been paid
11  by the lessor. If a lessor improperly collects any such amount
12  from the lessee, the lessee shall have a legal right to claim a
13  refund of that amount from the lessor. If, however, that
14  amount is not refunded to the lessee for any reason, the lessor
15  is liable to pay that amount to the Department.
16  (17) Beginning with taxable years ending on or after
17  December 31, 1995 and ending with taxable years ending on or
18  before December 31, 2004, personal property that is donated
19  for disaster relief to be used in a State or federally declared
20  disaster area in Illinois or bordering Illinois by a
21  manufacturer or retailer that is registered in this State to a
22  corporation, society, association, foundation, or institution
23  that has been issued a sales tax exemption identification
24  number by the Department that assists victims of the disaster
25  who reside within the declared disaster area.
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1  December 31, 1995 and ending with taxable years ending on or
2  before December 31, 2004, personal property that is used in
3  the performance of infrastructure repairs in this State,
4  including but not limited to municipal roads and streets,
5  access roads, bridges, sidewalks, waste disposal systems,
6  water and sewer line extensions, water distribution and
7  purification facilities, storm water drainage and retention
8  facilities, and sewage treatment facilities, resulting from a
9  State or federally declared disaster in Illinois or bordering
10  Illinois when such repairs are initiated on facilities located
11  in the declared disaster area within 6 months after the
12  disaster.
13  (19) Beginning July 1, 1999, game or game birds purchased
14  at a "game breeding and hunting preserve area" as that term is
15  used in the Wildlife Code. This paragraph is exempt from the
16  provisions of Section 3-75.
17  (20) A motor vehicle, as that term is defined in Section
18  1-146 of the Illinois Vehicle Code, that is donated to a
19  corporation, limited liability company, society, association,
20  foundation, or institution that is determined by the
21  Department to be organized and operated exclusively for
22  educational purposes. For purposes of this exemption, "a
23  corporation, limited liability company, society, association,
24  foundation, or institution organized and operated exclusively
25  for educational purposes" means all tax-supported public
26  schools, private schools that offer systematic instruction in

 

 

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

 

 

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1  other items, and replacement parts for these machines.
2  Beginning January 1, 2002 and through June 30, 2003, machines
3  and parts for machines used in commercial, coin-operated
4  amusement and vending business if a use or occupation tax is
5  paid on the gross receipts derived from the use of the
6  commercial, coin-operated amusement and vending machines. This
7  paragraph is exempt from the provisions of Section 3-75.
8  (23) Beginning August 23, 2001 and through June 30, 2016,
9  food for human consumption that is to be consumed off the
10  premises where it is sold (other than alcoholic beverages,
11  soft drinks, and food that has been prepared for immediate
12  consumption) and prescription and nonprescription medicines,
13  drugs, medical appliances, and insulin, urine testing
14  materials, syringes, and needles used by diabetics, for human
15  use, when purchased for use by a person receiving medical
16  assistance under Article V of the Illinois Public Aid Code who
17  resides in a licensed long-term care facility, as defined in
18  the Nursing Home Care Act, or in a licensed facility as defined
19  in the ID/DD Community Care Act, the MC/DD Act, or the
20  Specialized Mental Health Rehabilitation Act of 2013.
21  (24) Beginning on August 2, 2001 (the effective date of
22  Public Act 92-227), computers and communications equipment
23  utilized for any hospital purpose and equipment used in the
24  diagnosis, analysis, or treatment of hospital patients
25  purchased by a lessor who leases the equipment, under a lease
26  of one year or longer executed or in effect at the time the

 

 

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

 

 

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

 

 

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1  repair, or maintenance of the aircraft. This exemption
2  includes consumable supplies used in the modification,
3  refurbishment, completion, replacement, repair, and
4  maintenance of aircraft, but excludes any materials, parts,
5  equipment, components, and consumable supplies used in the
6  modification, replacement, repair, and maintenance of aircraft
7  engines or power plants, whether such engines or power plants
8  are installed or uninstalled upon any such aircraft.
9  "Consumable supplies" include, but are not limited to,
10  adhesive, tape, sandpaper, general purpose lubricants,
11  cleaning solution, latex gloves, and protective films. This
12  exemption applies only to the use of qualifying tangible
13  personal property transferred incident to the modification,
14  refurbishment, completion, replacement, repair, or maintenance
15  of aircraft by persons who (i) hold an Air Agency Certificate
16  and are empowered to operate an approved repair station by the
17  Federal Aviation Administration, (ii) have a Class IV Rating,
18  and (iii) conduct operations in accordance with Part 145 of
19  the Federal Aviation Regulations. The exemption does not
20  include aircraft operated by a commercial air carrier
21  providing scheduled passenger air service pursuant to
22  authority issued under Part 121 or Part 129 of the Federal
23  Aviation Regulations. The changes made to this paragraph (27)
24  by Public Act 98-534 are declarative of existing law. It is the
25  intent of the General Assembly that the exemption under this
26  paragraph (27) applies continuously from January 1, 2010

 

 

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1  through December 31, 2024; however, no claim for credit or
2  refund is allowed for taxes paid as a result of the
3  disallowance of this exemption on or after January 1, 2015 and
4  prior to February 5, 2020 (the effective date of Public Act
5  101-629) this amendatory Act of the 101st General Assembly.
6  (28) Tangible personal property purchased by a
7  public-facilities corporation, as described in Section
8  11-65-10 of the Illinois Municipal Code, for purposes of
9  constructing or furnishing a municipal convention hall, but
10  only if the legal title to the municipal convention hall is
11  transferred to the municipality without any further
12  consideration by or on behalf of the municipality at the time
13  of the completion of the municipal convention hall or upon the
14  retirement or redemption of any bonds or other debt
15  instruments issued by the public-facilities corporation in
16  connection with the development of the municipal convention
17  hall. This exemption includes existing public-facilities
18  corporations as provided in Section 11-65-25 of the Illinois
19  Municipal Code. This paragraph is exempt from the provisions
20  of Section 3-75.
21  (29) Beginning January 1, 2017 and through December 31,
22  2026, menstrual pads, tampons, and menstrual cups.
23  (30) Tangible personal property transferred to a purchaser
24  who is exempt from the tax imposed by this Act by operation of
25  federal law. This paragraph is exempt from the provisions of
26  Section 3-75.

 

 

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

 

 

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

 

 

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1  This item (31) is exempt from the provisions of Section
2  3-75.
3  (32) Beginning July 1, 2022, breast pumps, breast pump
4  collection and storage supplies, and breast pump kits. This
5  item (32) is exempt from the provisions of Section 3-75. As
6  used in this item (32):
7  "Breast pump" means an electrically controlled or
8  manually controlled pump device designed or marketed to be
9  used to express milk from a human breast during lactation,
10  including the pump device and any battery, AC adapter, or
11  other power supply unit that is used to power the pump
12  device and is packaged and sold with the pump device at the
13  time of sale.
14  "Breast pump collection and storage supplies" means
15  items of tangible personal property designed or marketed
16  to be used in conjunction with a breast pump to collect
17  milk expressed from a human breast and to store collected
18  milk until it is ready for consumption.
19  "Breast pump collection and storage supplies"
20  includes, but is not limited to: breast shields and breast
21  shield connectors; breast pump tubes and tubing adapters;
22  breast pump valves and membranes; backflow protectors and
23  backflow protector adaptors; bottles and bottle caps
24  specific to the operation of the breast pump; and breast
25  milk storage bags.
26  "Breast pump collection and storage supplies" does not

 

 

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1  include: (1) bottles and bottle caps not specific to the
2  operation of the breast pump; (2) breast pump travel bags
3  and other similar carrying accessories, including ice
4  packs, labels, and other similar products; (3) breast pump
5  cleaning supplies; (4) nursing bras, bra pads, breast
6  shells, and other similar products; and (5) creams,
7  ointments, and other similar products that relieve
8  breastfeeding-related symptoms or conditions of the
9  breasts or nipples, unless sold as part of a breast pump
10  kit that is pre-packaged by the breast pump manufacturer
11  or distributor.
12  "Breast pump kit" means a kit that: (1) contains no
13  more than a breast pump, breast pump collection and
14  storage supplies, a rechargeable battery for operating the
15  breast pump, a breastmilk cooler, bottle stands, ice
16  packs, and a breast pump carrying case; and (2) is
17  pre-packaged as a breast pump kit by the breast pump
18  manufacturer or distributor.
19  (33) (32) Tangible personal property sold by or on behalf
20  of the State Treasurer pursuant to the Revised Uniform
21  Unclaimed Property Act. This item (33) (32) is exempt from the
22  provisions of Section 3-75.
23  (34) Beginning July 1, 2023, prescription medicines and
24  medical devices (including, but not limited to, products
25  classified as Class III medical devices by the United States
26  Food and Drug Administration that are used for cancer

 

 

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1  treatment pursuant to a prescription, as well as any
2  accessories and components related to those devices). This
3  item (34) is exempt from the provisions of Section 3-75.
4  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
5  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
6  70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
7  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
8  (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
9  Sec. 3-10. Rate of tax. Unless otherwise provided in this
10  Section, the tax imposed by this Act is at the rate of 6.25% of
11  the selling price of tangible personal property transferred as
12  an incident to the sale of service, but, for the purpose of
13  computing this tax, in no event shall the selling price be less
14  than the cost price of the property to the serviceman.
15  Beginning on July 1, 2000 and through December 31, 2000,
16  with respect to motor fuel, as defined in Section 1.1 of the
17  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18  the Use Tax Act, the tax is imposed at the rate of 1.25%.
19  With respect to gasohol, as defined in the Use Tax Act, the
20  tax imposed by this Act applies to (i) 70% of the selling price
21  of property transferred as an incident to the sale of service
22  on or after January 1, 1990, and before July 1, 2003, (ii) 80%
23  of the selling price of property transferred as an incident to
24  the sale of service on or after July 1, 2003 and on or before
25  July 1, 2017, and (iii) 100% of the selling price thereafter.

 

 

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1  If, at any time, however, the tax under this Act on sales of
2  gasohol, as defined in the Use Tax Act, is imposed at the rate
3  of 1.25%, then the tax imposed by this Act applies to 100% of
4  the proceeds of sales of gasohol made during that time.
5  With respect to majority blended ethanol fuel, as defined
6  in the Use Tax Act, the tax imposed by this Act does not apply
7  to the selling price of property transferred as an incident to
8  the sale of service on or after July 1, 2003 and on or before
9  December 31, 2023 but applies to 100% of the selling price
10  thereafter.
11  With respect to biodiesel blends, as defined in the Use
12  Tax Act, with no less than 1% and no more than 10% biodiesel,
13  the tax imposed by this Act applies to (i) 80% of the selling
14  price of property transferred as an incident to the sale of
15  service on or after July 1, 2003 and on or before December 31,
16  2018 and (ii) 100% of the proceeds of the selling price after
17  December 31, 2018 and before January 1, 2024. On and after
18  January 1, 2024 and on or before December 31, 2030, the
19  taxation of biodiesel, renewable diesel, and biodiesel blends
20  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
21  at any time, however, the tax under this Act on sales of
22  biodiesel blends, as defined in the Use Tax Act, with no less
23  than 1% and no more than 10% biodiesel is imposed at the rate
24  of 1.25%, then the tax imposed by this Act applies to 100% of
25  the proceeds of sales of biodiesel blends with no less than 1%
26  and no more than 10% biodiesel made during that time.

 

 

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1  With respect to biodiesel, as defined in the Use Tax Act,
2  and biodiesel blends, as defined in the Use Tax Act, with more
3  than 10% but no more than 99% biodiesel, the tax imposed by
4  this Act does not apply to the proceeds of the selling price of
5  property transferred as an incident to the sale of service on
6  or after July 1, 2003 and on or before December 31, 2023. On
7  and after January 1, 2024 and on or before December 31, 2030,
8  the taxation of biodiesel, renewable diesel, and biodiesel
9  blends shall be as provided in Section 3-5.1 of the Use Tax
10  Act.
11  At the election of any registered serviceman made for each
12  fiscal year, sales of service in which the aggregate annual
13  cost price of tangible personal property transferred as an
14  incident to the sales of service is less than 35%, or 75% in
15  the case of servicemen transferring prescription drugs or
16  servicemen engaged in graphic arts production, of the
17  aggregate annual total gross receipts from all sales of
18  service, the tax imposed by this Act shall be based on the
19  serviceman's cost price of the tangible personal property
20  transferred as an incident to the sale of those services.
21  Until July 1, 2022 and beginning again on July 1, 2023, the
22  tax shall be imposed at the rate of 1% on food prepared for
23  immediate consumption and transferred incident to a sale of
24  service subject to this Act or the Service Occupation Tax Act
25  by an entity licensed under the Hospital Licensing Act, the
26  Nursing Home Care Act, the Assisted Living and Shared Housing

 

 

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1  Act, the ID/DD Community Care Act, the MC/DD Act, the
2  Specialized Mental Health Rehabilitation Act of 2013, or the
3  Child Care Act of 1969, or an entity that holds a permit issued
4  pursuant to the Life Care Facilities Act. Until July 1, 2022
5  and beginning again on July 1, 2023, the tax shall also be
6  imposed at the rate of 1% on food for human consumption that is
7  to be consumed off the premises where it is sold (other than
8  alcoholic beverages, food consisting of or infused with adult
9  use cannabis, soft drinks, and food that has been prepared for
10  immediate consumption and is not otherwise included in this
11  paragraph).
12  Beginning on July 1, 2022 and until July 1, 2023, the tax
13  shall be imposed at the rate of 0% on food prepared for
14  immediate consumption and transferred incident to a sale of
15  service subject to this Act or the Service Occupation Tax Act
16  by an entity licensed under the Hospital Licensing Act, the
17  Nursing Home Care Act, the Assisted Living and Shared Housing
18  Act, the ID/DD Community Care Act, the MC/DD Act, the
19  Specialized Mental Health Rehabilitation Act of 2013, or the
20  Child Care Act of 1969, or an entity that holds a permit issued
21  pursuant to the Life Care Facilities Act. Beginning on July 1,
22  2022 and until July 1, 2023, the tax shall also be imposed at
23  the rate of 0% on food for human consumption that is to be
24  consumed off the premises where it is sold (other than
25  alcoholic beverages, food consisting of or infused with adult
26  use cannabis, soft drinks, and food that has been prepared for

 

 

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1  immediate consumption and is not otherwise included in this
2  paragraph).
3  The tax shall also be imposed at the rate of 1% on
4  prescription and nonprescription medicines and , drugs,
5  medical appliances that are not exempt under paragraph (34) of
6  Section 3-5), products classified as Class III medical devices
7  by the United States Food and Drug Administration that are
8  used for cancer treatment pursuant to a prescription, as well
9  as any accessories and components related to those devices,
10  modifications to a motor vehicle for the purpose of rendering
11  it usable by a person with a disability, and insulin, blood
12  sugar testing materials, syringes, and needles used by human
13  diabetics. For the purposes of this Section, until September
14  1, 2009: the term "soft drinks" means any complete, finished,
15  ready-to-use, non-alcoholic drink, whether carbonated or not,
16  including, but not limited to, soda water, cola, fruit juice,
17  vegetable juice, carbonated water, and all other preparations
18  commonly known as soft drinks of whatever kind or description
19  that are contained in any closed or sealed bottle, can,
20  carton, or container, regardless of size; but "soft drinks"
21  does not include coffee, tea, non-carbonated water, infant
22  formula, milk or milk products as defined in the Grade A
23  Pasteurized Milk and Milk Products Act, or drinks containing
24  50% or more natural fruit or vegetable juice.
25  Notwithstanding any other provisions of this Act,
26  beginning September 1, 2009, "soft drinks" means non-alcoholic

 

 

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1  beverages that contain natural or artificial sweeteners. "Soft
2  drinks" does do not include beverages that contain milk or
3  milk products, soy, rice or similar milk substitutes, or
4  greater than 50% of vegetable or fruit juice by volume.
5  Until August 1, 2009, and notwithstanding any other
6  provisions of this Act, "food for human consumption that is to
7  be consumed off the premises where it is sold" includes all
8  food sold through a vending machine, except soft drinks and
9  food products that are dispensed hot from a vending machine,
10  regardless of the location of the vending machine. Beginning
11  August 1, 2009, and notwithstanding any other provisions of
12  this Act, "food for human consumption that is to be consumed
13  off the premises where it is sold" includes all food sold
14  through a vending machine, except soft drinks, candy, and food
15  products that are dispensed hot from a vending machine,
16  regardless of the location of the vending machine.
17  Notwithstanding any other provisions of this Act,
18  beginning September 1, 2009, "food for human consumption that
19  is to be consumed off the premises where it is sold" does not
20  include candy. For purposes of this Section, "candy" means a
21  preparation of sugar, honey, or other natural or artificial
22  sweeteners in combination with chocolate, fruits, nuts or
23  other ingredients or flavorings in the form of bars, drops, or
24  pieces. "Candy" does not include any preparation that contains
25  flour or requires refrigeration.
26  Notwithstanding any other provisions of this Act,

 

 

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1  beginning September 1, 2009, "nonprescription medicines and
2  drugs" does not include grooming and hygiene products. For
3  purposes of this Section, "grooming and hygiene products"
4  includes, but is not limited to, soaps and cleaning solutions,
5  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6  lotions and screens, unless those products are available by
7  prescription only, regardless of whether the products meet the
8  definition of "over-the-counter-drugs". For the purposes of
9  this paragraph, "over-the-counter-drug" means a drug for human
10  use that contains a label that identifies the product as a drug
11  as required by 21 CFR C.F.R.  201.66. The
12  "over-the-counter-drug" label includes:
13  (A) a A "Drug Facts" panel; or
14  (B) a A statement of the "active ingredient(s)" with a
15  list of those ingredients contained in the compound,
16  substance or preparation.
17  Beginning on January 1, 2014 (the effective date of Public
18  Act 98-122), "prescription and nonprescription medicines and
19  drugs" includes medical cannabis purchased from a registered
20  dispensing organization under the Compassionate Use of Medical
21  Cannabis Program Act.
22  As used in this Section, "adult use cannabis" means
23  cannabis subject to tax under the Cannabis Cultivation
24  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
25  and does not include cannabis subject to tax under the
26  Compassionate Use of Medical Cannabis Program Act.

 

 

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1  If the property that is acquired from a serviceman is
2  acquired outside Illinois and used outside Illinois before
3  being brought to Illinois for use here and is taxable under
4  this Act, the "selling price" on which the tax is computed
5  shall be reduced by an amount that represents a reasonable
6  allowance for depreciation for the period of prior
7  out-of-state use.
8  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
9  102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
10  20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
11  60-20, eff. 4-19-22; revised 6-1-22.)
12  Section 15. The Service Occupation Tax Act is amended by
13  changing Sections 3-5 and 3-10 as follows:
14  (35 ILCS 115/3-5)
15  Sec. 3-5. Exemptions. The following tangible personal
16  property is exempt from the tax imposed by this Act:
17  (1) Personal property sold by a corporation, society,
18  association, foundation, institution, or organization, other
19  than a limited liability company, that is organized and
20  operated as a not-for-profit service enterprise for the
21  benefit of persons 65 years of age or older if the personal
22  property was not purchased by the enterprise for the purpose
23  of resale by the enterprise.
24  (2) Personal property purchased by a not-for-profit

 

 

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

 

 

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

 

 

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

 

 

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1  Beginning July 1, 2013, fuel and petroleum products sold
2  to or used by an air carrier, certified by the carrier to be
3  used for consumption, shipment, or storage in the conduct of
4  its business as an air common carrier, for a flight that (i) is
5  engaged in foreign trade or is engaged in trade between the
6  United States and any of its possessions and (ii) transports
7  at least one individual or package for hire from the city of
8  origination to the city of final destination on the same
9  aircraft, without regard to a change in the flight number of
10  that aircraft.
11  (9) Proceeds of mandatory service charges separately
12  stated on customers' bills for the purchase and consumption of
13  food and beverages, to the extent that the proceeds of the
14  service charge are in fact turned over as tips or as a
15  substitute for tips to the employees who participate directly
16  in preparing, serving, hosting or cleaning up the food or
17  beverage function with respect to which the service charge is
18  imposed.
19  (10) Until July 1, 2003, oil field exploration, drilling,
20  and production equipment, including (i) rigs and parts of
21  rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
22  pipe and tubular goods, including casing and drill strings,
23  (iii) pumps and pump-jack units, (iv) storage tanks and flow
24  lines, (v) any individual replacement part for oil field
25  exploration, drilling, and production equipment, and (vi)
26  machinery and equipment purchased for lease; but excluding

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  or manufactured into, attached to, or incorporated into other
2  tangible personal property to be transported outside this
3  State and thereafter used or consumed solely outside this
4  State. The Director of Revenue shall, pursuant to rules
5  adopted in accordance with the Illinois Administrative
6  Procedure Act, issue a permit to any taxpayer in good standing
7  with the Department who is eligible for the exemption under
8  this paragraph (26). The permit issued under this paragraph
9  (26) shall authorize the holder, to the extent and in the
10  manner specified in the rules adopted under this Act, to
11  purchase tangible personal property from a retailer exempt
12  from the taxes imposed by this Act. Taxpayers shall maintain
13  all necessary books and records to substantiate the use and
14  consumption of all such tangible personal property outside of
15  the State of Illinois.
16  (27) Beginning January 1, 2008, tangible personal property
17  used in the construction or maintenance of a community water
18  supply, as defined under Section 3.145 of the Environmental
19  Protection Act, that is operated by a not-for-profit
20  corporation that holds a valid water supply permit issued
21  under Title IV of the Environmental Protection Act. This
22  paragraph is exempt from the provisions of Section 3-55.
23  (28) Tangible personal property sold to a
24  public-facilities corporation, as described in Section
25  11-65-10 of the Illinois Municipal Code, for purposes of
26  constructing or furnishing a municipal convention hall, but

 

 

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1  only if the legal title to the municipal convention hall is
2  transferred to the municipality without any further
3  consideration by or on behalf of the municipality at the time
4  of the completion of the municipal convention hall or upon the
5  retirement or redemption of any bonds or other debt
6  instruments issued by the public-facilities corporation in
7  connection with the development of the municipal convention
8  hall. This exemption includes existing public-facilities
9  corporations as provided in Section 11-65-25 of the Illinois
10  Municipal Code. This paragraph is exempt from the provisions
11  of Section 3-55.
12  (29) Beginning January 1, 2010 and continuing through
13  December 31, 2024, materials, parts, equipment, components,
14  and furnishings incorporated into or upon an aircraft as part
15  of the modification, refurbishment, completion, replacement,
16  repair, or maintenance of the aircraft. This exemption
17  includes consumable supplies used in the modification,
18  refurbishment, completion, replacement, repair, and
19  maintenance of aircraft, but excludes any materials, parts,
20  equipment, components, and consumable supplies used in the
21  modification, replacement, repair, and maintenance of aircraft
22  engines or power plants, whether such engines or power plants
23  are installed or uninstalled upon any such aircraft.
24  "Consumable supplies" include, but are not limited to,
25  adhesive, tape, sandpaper, general purpose lubricants,
26  cleaning solution, latex gloves, and protective films. This

 

 

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

 

 

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

 

 

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

 

 

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1  3-55.
2  (33) Beginning July 1, 2022, breast pumps, breast pump
3  collection and storage supplies, and breast pump kits. This
4  item (33) is exempt from the provisions of Section 3-55. As
5  used in this item (33):
6  "Breast pump" means an electrically controlled or
7  manually controlled pump device designed or marketed to be
8  used to express milk from a human breast during lactation,
9  including the pump device and any battery, AC adapter, or
10  other power supply unit that is used to power the pump
11  device and is packaged and sold with the pump device at the
12  time of sale.
13  "Breast pump collection and storage supplies" means
14  items of tangible personal property designed or marketed
15  to be used in conjunction with a breast pump to collect
16  milk expressed from a human breast and to store collected
17  milk until it is ready for consumption.
18  "Breast pump collection and storage supplies"
19  includes, but is not limited to: breast shields and breast
20  shield connectors; breast pump tubes and tubing adapters;
21  breast pump valves and membranes; backflow protectors and
22  backflow protector adaptors; bottles and bottle caps
23  specific to the operation of the breast pump; and breast
24  milk storage bags.
25  "Breast pump collection and storage supplies" does not
26  include: (1) bottles and bottle caps not specific to the

 

 

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1  operation of the breast pump; (2) breast pump travel bags
2  and other similar carrying accessories, including ice
3  packs, labels, and other similar products; (3) breast pump
4  cleaning supplies; (4) nursing bras, bra pads, breast
5  shells, and other similar products; and (5) creams,
6  ointments, and other similar products that relieve
7  breastfeeding-related symptoms or conditions of the
8  breasts or nipples, unless sold as part of a breast pump
9  kit that is pre-packaged by the breast pump manufacturer
10  or distributor.
11  "Breast pump kit" means a kit that: (1) contains no
12  more than a breast pump, breast pump collection and
13  storage supplies, a rechargeable battery for operating the
14  breast pump, a breastmilk cooler, bottle stands, ice
15  packs, and a breast pump carrying case; and (2) is
16  pre-packaged as a breast pump kit by the breast pump
17  manufacturer or distributor.
18  (34) (33) Tangible personal property sold by or on behalf
19  of the State Treasurer pursuant to the Revised Uniform
20  Unclaimed Property Act. This item (34) (33) is exempt from the
21  provisions of Section 3-55.
22  (35) Beginning July 1, 2023, prescription medicines and
23  medical devices (including, but not limited to, products
24  classified as Class III medical devices by the United States
25  Food and Drug Administration that are used for cancer
26  treatment pursuant to a prescription, as well as any

 

 

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1  accessories and components related to those devices). This
2  item (35) is exempt from the provisions of Section 3-55.
3  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
5  70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
6  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
7  (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
8  Sec. 3-10. Rate of tax. Unless otherwise provided in this
9  Section, the tax imposed by this Act is at the rate of 6.25% of
10  the "selling price", as defined in Section 2 of the Service Use
11  Tax Act, of the tangible personal property. For the purpose of
12  computing this tax, in no event shall the "selling price" be
13  less than the cost price to the serviceman of the tangible
14  personal property transferred. The selling price of each item
15  of tangible personal property transferred as an incident of a
16  sale of service may be shown as a distinct and separate item on
17  the serviceman's billing to the service customer. If the
18  selling price is not so shown, the selling price of the
19  tangible personal property is deemed to be 50% of the
20  serviceman's entire billing to the service customer. When,
21  however, a serviceman contracts to design, develop, and
22  produce special order machinery or equipment, the tax imposed
23  by this Act shall be based on the serviceman's cost price of
24  the tangible personal property transferred incident to the
25  completion of the contract.

 

 

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1  Beginning on July 1, 2000 and through December 31, 2000,
2  with respect to motor fuel, as defined in Section 1.1 of the
3  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4  the Use Tax Act, the tax is imposed at the rate of 1.25%.
5  With respect to gasohol, as defined in the Use Tax Act, the
6  tax imposed by this Act shall apply to (i) 70% of the cost
7  price of property transferred as an incident to the sale of
8  service on or after January 1, 1990, and before July 1, 2003,
9  (ii) 80% of the selling price of property transferred as an
10  incident to the sale of service on or after July 1, 2003 and on
11  or before July 1, 2017, and (iii) 100% of the cost price
12  thereafter. If, at any time, however, the tax under this Act on
13  sales of gasohol, as defined in the Use Tax Act, is imposed at
14  the rate of 1.25%, then the tax imposed by this Act applies to
15  100% of the proceeds of sales of gasohol made during that time.
16  With respect to majority blended ethanol fuel, as defined
17  in the Use Tax Act, the tax imposed by this Act does not apply
18  to the selling price of property transferred as an incident to
19  the sale of service on or after July 1, 2003 and on or before
20  December 31, 2023 but applies to 100% of the selling price
21  thereafter.
22  With respect to biodiesel blends, as defined in the Use
23  Tax Act, with no less than 1% and no more than 10% biodiesel,
24  the tax imposed by this Act applies to (i) 80% of the selling
25  price of property transferred as an incident to the sale of
26  service on or after July 1, 2003 and on or before December 31,

 

 

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1  2018 and (ii) 100% of the proceeds of the selling price after
2  December 31, 2018 and before January 1, 2024. On and after
3  January 1, 2024 and on or before December 31, 2030, the
4  taxation of biodiesel, renewable diesel, and biodiesel blends
5  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
6  at any time, however, the tax under this Act on sales of
7  biodiesel blends, as defined in the Use Tax Act, with no less
8  than 1% and no more than 10% biodiesel is imposed at the rate
9  of 1.25%, then the tax imposed by this Act applies to 100% of
10  the proceeds of sales of biodiesel blends with no less than 1%
11  and no more than 10% biodiesel made during that time.
12  With respect to biodiesel, as defined in the Use Tax Act,
13  and biodiesel blends, as defined in the Use Tax Act, with more
14  than 10% but no more than 99% biodiesel material, the tax
15  imposed by this Act does not apply to the proceeds of the
16  selling price of property transferred as an incident to the
17  sale of service on or after July 1, 2003 and on or before
18  December 31, 2023. On and after January 1, 2024 and on or
19  before December 31, 2030, the taxation of biodiesel, renewable
20  diesel, and biodiesel blends shall be as provided in Section
21  3-5.1 of the Use Tax Act.
22  At the election of any registered serviceman made for each
23  fiscal year, sales of service in which the aggregate annual
24  cost price of tangible personal property transferred as an
25  incident to the sales of service is less than 35%, or 75% in
26  the case of servicemen transferring prescription drugs or

 

 

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1  servicemen engaged in graphic arts production, of the
2  aggregate annual total gross receipts from all sales of
3  service, the tax imposed by this Act shall be based on the
4  serviceman's cost price of the tangible personal property
5  transferred incident to the sale of those services.
6  Until July 1, 2022 and beginning again on July 1, 2023, the
7  tax shall be imposed at the rate of 1% on food prepared for
8  immediate consumption and transferred incident to a sale of
9  service subject to this Act or the Service Use Tax Act by an
10  entity licensed under the Hospital Licensing Act, the Nursing
11  Home Care Act, the Assisted Living and Shared Housing Act, the
12  ID/DD Community Care Act, the MC/DD Act, the Specialized
13  Mental Health Rehabilitation Act of 2013, or the Child Care
14  Act of 1969, or an entity that holds a permit issued pursuant
15  to the Life Care Facilities Act. Until July 1, 2022 and
16  beginning again on July 1, 2023, the tax shall also be imposed
17  at the rate of 1% on food for human consumption that is to be
18  consumed off the premises where it is sold (other than
19  alcoholic beverages, food consisting of or infused with adult
20  use cannabis, soft drinks, and food that has been prepared for
21  immediate consumption and is not otherwise included in this
22  paragraph).
23  Beginning on July 1, 2022 and until July 1, 2023, the tax
24  shall be imposed at the rate of 0% on food prepared for
25  immediate consumption and transferred incident to a sale of
26  service subject to this Act or the Service Use Tax Act by an

 

 

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1  entity licensed under the Hospital Licensing Act, the Nursing
2  Home Care Act, the Assisted Living and Shared Housing Act, the
3  ID/DD Community Care Act, the MC/DD Act, the Specialized
4  Mental Health Rehabilitation Act of 2013, or the Child Care
5  Act of 1969, or an entity that holds a permit issued pursuant
6  to the Life Care Facilities Act. Beginning July 1, 2022 and
7  until July 1, 2023, the tax shall also be imposed at the rate
8  of 0% on food for human consumption that is to be consumed off
9  the premises where it is sold (other than alcoholic beverages,
10  food consisting of or infused with adult use cannabis, soft
11  drinks, and food that has been prepared for immediate
12  consumption and is not otherwise included in this paragraph).
13  The tax shall also be imposed at the rate of 1% on
14  prescription and nonprescription medicines and , drugs,
15  medical appliances that are not exempt under paragraph (35) of
16  Section 3-5), products classified as Class III medical devices
17  by the United States Food and Drug Administration that are
18  used for cancer treatment pursuant to a prescription, as well
19  as any accessories and components related to those devices,
20  modifications to a motor vehicle for the purpose of rendering
21  it usable by a person with a disability, and insulin, blood
22  sugar testing materials, syringes, and needles used by human
23  diabetics. For the purposes of this Section, until September
24  1, 2009: the term "soft drinks" means any complete, finished,
25  ready-to-use, non-alcoholic drink, whether carbonated or not,
26  including, but not limited to, soda water, cola, fruit juice,

 

 

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1  vegetable juice, carbonated water, and all other preparations
2  commonly known as soft drinks of whatever kind or description
3  that are contained in any closed or sealed can, carton, or
4  container, regardless of size; but "soft drinks" does not
5  include coffee, tea, non-carbonated water, infant formula,
6  milk or milk products as defined in the Grade A Pasteurized
7  Milk and Milk Products Act, or drinks containing 50% or more
8  natural fruit or vegetable juice.
9  Notwithstanding any other provisions of this Act,
10  beginning September 1, 2009, "soft drinks" means non-alcoholic
11  beverages that contain natural or artificial sweeteners. "Soft
12  drinks" does do not include beverages that contain milk or
13  milk products, soy, rice or similar milk substitutes, or
14  greater than 50% of vegetable or fruit juice by volume.
15  Until August 1, 2009, and notwithstanding any other
16  provisions of this Act, "food for human consumption that is to
17  be consumed off the premises where it is sold" includes all
18  food sold through a vending machine, except soft drinks and
19  food products that are dispensed hot from a vending machine,
20  regardless of the location of the vending machine. Beginning
21  August 1, 2009, and notwithstanding any other provisions of
22  this Act, "food for human consumption that is to be consumed
23  off the premises where it is sold" includes all food sold
24  through a vending machine, except soft drinks, candy, and food
25  products that are dispensed hot from a vending machine,
26  regardless of the location of the vending machine.

 

 

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1  Notwithstanding any other provisions of this Act,
2  beginning September 1, 2009, "food for human consumption that
3  is to be consumed off the premises where it is sold" does not
4  include candy. For purposes of this Section, "candy" means a
5  preparation of sugar, honey, or other natural or artificial
6  sweeteners in combination with chocolate, fruits, nuts or
7  other ingredients or flavorings in the form of bars, drops, or
8  pieces. "Candy" does not include any preparation that contains
9  flour or requires refrigeration.
10  Notwithstanding any other provisions of this Act,
11  beginning September 1, 2009, "nonprescription medicines and
12  drugs" does not include grooming and hygiene products. For
13  purposes of this Section, "grooming and hygiene products"
14  includes, but is not limited to, soaps and cleaning solutions,
15  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
16  lotions and screens, unless those products are available by
17  prescription only, regardless of whether the products meet the
18  definition of "over-the-counter-drugs". For the purposes of
19  this paragraph, "over-the-counter-drug" means a drug for human
20  use that contains a label that identifies the product as a drug
21  as required by 21 CFR C.F.R.  201.66. The
22  "over-the-counter-drug" label includes:
23  (A) a A "Drug Facts" panel; or
24  (B) a A statement of the "active ingredient(s)" with a
25  list of those ingredients contained in the compound,
26  substance or preparation.

 

 

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1  Beginning on January 1, 2014 (the effective date of Public
2  Act 98-122), "prescription and nonprescription medicines and
3  drugs" includes medical cannabis purchased from a registered
4  dispensing organization under the Compassionate Use of Medical
5  Cannabis Program Act.
6  As used in this Section, "adult use cannabis" means
7  cannabis subject to tax under the Cannabis Cultivation
8  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9  and does not include cannabis subject to tax under the
10  Compassionate Use of Medical Cannabis Program Act.
11  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12  102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
13  20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
14  60-25, eff. 4-19-22; revised 6-1-22.)
15  Section 20. The Retailers' Occupation Tax Act is amended
16  by changing Sections 2-5 and 2-10 as follows:
17  (35 ILCS 120/2-5)
18  Sec. 2-5. Exemptions. Gross receipts from proceeds from
19  the sale of the following tangible personal property are
20  exempt from the tax imposed by this Act:
21  (1) Farm chemicals.
22  (2) Farm machinery and equipment, both new and used,
23  including that manufactured on special order, certified by
24  the purchaser to be used primarily for production

 

 

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

 

 

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

 

 

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

 

 

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1  On and after July 1, 2001 (the effective date of Public Act
2  92-35), however, an entity otherwise eligible for this
3  exemption shall not make tax-free purchases unless it has
4  an active identification number issued by the Department.
5  (10) Personal property sold by a corporation, society,
6  association, foundation, institution, or organization,
7  other than a limited liability company, that is organized
8  and operated as a not-for-profit service enterprise for
9  the benefit of persons 65 years of age or older if the
10  personal property was not purchased by the enterprise for
11  the purpose of resale by the enterprise.
12  (11) Personal property sold to a governmental body, to
13  a corporation, society, association, foundation, or
14  institution organized and operated exclusively for
15  charitable, religious, or educational purposes, or to a
16  not-for-profit corporation, society, association,
17  foundation, institution, or organization that has no
18  compensated officers or employees and that is organized
19  and operated primarily for the recreation of persons 55
20  years of age or older. A limited liability company may
21  qualify for the exemption under this paragraph only if the
22  limited liability company is organized and operated
23  exclusively for educational purposes. On and after July 1,
24  1987, however, no entity otherwise eligible for this
25  exemption shall make tax-free purchases unless it has an
26  active identification number issued by the Department.

 

 

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1  (12) (Blank).
2  (12-5) On and after July 1, 2003 and through June 30,
3  2004, motor vehicles of the second division with a gross
4  vehicle weight in excess of 8,000 pounds that are subject
5  to the commercial distribution fee imposed under Section
6  3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
7  2004 and through June 30, 2005, the use in this State of
8  motor vehicles of the second division: (i) with a gross
9  vehicle weight rating in excess of 8,000 pounds; (ii) that
10  are subject to the commercial distribution fee imposed
11  under Section 3-815.1 of the Illinois Vehicle Code; and
12  (iii) that are primarily used for commercial purposes.
13  Through June 30, 2005, this exemption applies to repair
14  and replacement parts added after the initial purchase of
15  such a motor vehicle if that motor vehicle is used in a
16  manner that would qualify for the rolling stock exemption
17  otherwise provided for in this Act. For purposes of this
18  paragraph, "used for commercial purposes" means the
19  transportation of persons or property in furtherance of
20  any commercial or industrial enterprise whether for-hire
21  or not.
22  (13) Proceeds from sales to owners, lessors, or
23  shippers of tangible personal property that is utilized by
24  interstate carriers for hire for use as rolling stock
25  moving in interstate commerce and equipment operated by a
26  telecommunications provider, licensed as a common carrier

 

 

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

 

 

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1  provided by this paragraph (14) includes, but is not
2  limited to, graphic arts machinery and equipment, as
3  defined in paragraph (4) of this Section.
4  (15) Proceeds of mandatory service charges separately
5  stated on customers' bills for purchase and consumption of
6  food and beverages, to the extent that the proceeds of the
7  service charge are in fact turned over as tips or as a
8  substitute for tips to the employees who participate
9  directly in preparing, serving, hosting or cleaning up the
10  food or beverage function with respect to which the
11  service charge is imposed.
12  (16) Tangible personal property sold to a purchaser if
13  the purchaser is exempt from use tax by operation of
14  federal law. This paragraph is exempt from the provisions
15  of Section 2-70.
16  (17) Tangible personal property sold to a common
17  carrier by rail or motor that receives the physical
18  possession of the property in Illinois and that transports
19  the property, or shares with another common carrier in the
20  transportation of the property, out of Illinois on a
21  standard uniform bill of lading showing the seller of the
22  property as the shipper or consignor of the property to a
23  destination outside Illinois, for use outside Illinois.
24  (18) Legal tender, currency, medallions, or gold or
25  silver coinage issued by the State of Illinois, the
26  government of the United States of America, or the

 

 

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

 

 

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1  of Public Act 98-456) for such taxes paid during the
2  period beginning July 1, 2003 and ending on August 16,
3  2013 (the effective date of Public Act 98-456).
4  (22) Until June 30, 2013, fuel and petroleum products
5  sold to or used by an air carrier, certified by the carrier
6  to be used for consumption, shipment, or storage in the
7  conduct of its business as an air common carrier, for a
8  flight destined for or returning from a location or
9  locations outside the United States without regard to
10  previous or subsequent domestic stopovers.
11  Beginning July 1, 2013, fuel and petroleum products
12  sold to or used by an air carrier, certified by the carrier
13  to be used for consumption, shipment, or storage in the
14  conduct of its business as an air common carrier, for a
15  flight that (i) is engaged in foreign trade or is engaged
16  in trade between the United States and any of its
17  possessions and (ii) transports at least one individual or
18  package for hire from the city of origination to the city
19  of final destination on the same aircraft, without regard
20  to a change in the flight number of that aircraft.
21  (23) A transaction in which the purchase order is
22  received by a florist who is located outside Illinois, but
23  who has a florist located in Illinois deliver the property
24  to the purchaser or the purchaser's donee in Illinois.
25  (24) Fuel consumed or used in the operation of ships,
26  barges, or vessels that are used primarily in or for the

 

 

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

 

 

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1  a resident, except that the tax shall not exceed the tax
2  that would otherwise be imposed under this Act. At the
3  time of the sale, the purchaser shall execute a statement,
4  signed under penalty of perjury, of his or her intent to
5  title the vehicle in the state in which the purchaser is a
6  resident within 30 days after the sale and of the fact of
7  the payment to the State of Illinois of tax in an amount
8  equivalent to the state's rate of tax on taxable property
9  in his or her state of residence and shall submit the
10  statement to the appropriate tax collection agency in his
11  or her state of residence. In addition, the retailer must
12  retain a signed copy of the statement in his or her
13  records. Nothing in this item shall be construed to
14  require the removal of the vehicle from this state
15  following the filing of an intent to title the vehicle in
16  the purchaser's state of residence if the purchaser titles
17  the vehicle in his or her state of residence within 30 days
18  after the date of sale. The tax collected under this Act in
19  accordance with this item (25-5) shall be proportionately
20  distributed as if the tax were collected at the 6.25%
21  general rate imposed under this Act.
22  (25-7) Beginning on July 1, 2007, no tax is imposed
23  under this Act on the sale of an aircraft, as defined in
24  Section 3 of the Illinois Aeronautics Act, if all of the
25  following conditions are met:
26  (1) the aircraft leaves this State within 15 days

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  30, 2003, machines and parts for machines used in
2  commercial, coin-operated amusement and vending business
3  if a use or occupation tax is paid on the gross receipts
4  derived from the use of the commercial, coin-operated
5  amusement and vending machines. This paragraph is exempt
6  from the provisions of Section 2-70.
7  (35-5) Beginning August 23, 2001 and through June 30,
8  2016, food for human consumption that is to be consumed
9  off the premises where it is sold (other than alcoholic
10  beverages, soft drinks, and food that has been prepared
11  for immediate consumption) and prescription and
12  nonprescription medicines, drugs, medical appliances, and
13  insulin, urine testing materials, syringes, and needles
14  used by diabetics, for human use, when purchased for use
15  by a person receiving medical assistance under Article V
16  of the Illinois Public Aid Code who resides in a licensed
17  long-term care facility, as defined in the Nursing Home
18  Care Act, or a licensed facility as defined in the ID/DD
19  Community Care Act, the MC/DD Act, or the Specialized
20  Mental Health Rehabilitation Act of 2013.
21  (36) Beginning August 2, 2001, computers and
22  communications equipment utilized for any hospital purpose
23  and equipment used in the diagnosis, analysis, or
24  treatment of hospital patients sold to a lessor who leases
25  the equipment, under a lease of one year or longer
26  executed or in effect at the time of the purchase, to a

 

 

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

 

 

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

 

 

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

 

 

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1  Public Act 101-629) this amendatory Act of the 101st
2  General Assembly.
3  (41) Tangible personal property sold to a
4  public-facilities corporation, as described in Section
5  11-65-10 of the Illinois Municipal Code, for purposes of
6  constructing or furnishing a municipal convention hall,
7  but only if the legal title to the municipal convention
8  hall is transferred to the municipality without any
9  further consideration by or on behalf of the municipality
10  at the time of the completion of the municipal convention
11  hall or upon the retirement or redemption of any bonds or
12  other debt instruments issued by the public-facilities
13  corporation in connection with the development of the
14  municipal convention hall. This exemption includes
15  existing public-facilities corporations as provided in
16  Section 11-65-25 of the Illinois Municipal Code. This
17  paragraph is exempt from the provisions of Section 2-70.
18  (42) Beginning January 1, 2017 and through December
19  31, 2026, menstrual pads, tampons, and menstrual cups.
20  (43) Merchandise that is subject to the Rental
21  Purchase Agreement Occupation and Use Tax. The purchaser
22  must certify that the item is purchased to be rented
23  subject to a rental purchase agreement, as defined in the
24  Rental Purchase Agreement Act, and provide proof of
25  registration under the Rental Purchase Agreement
26  Occupation and Use Tax Act. This paragraph is exempt from

 

 

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1  the provisions of Section 2-70.
2  (44) Qualified tangible personal property used in the
3  construction or operation of a data center that has been
4  granted a certificate of exemption by the Department of
5  Commerce and Economic Opportunity, whether that tangible
6  personal property is purchased by the owner, operator, or
7  tenant of the data center or by a contractor or
8  subcontractor of the owner, operator, or tenant. Data
9  centers that would have qualified for a certificate of
10  exemption prior to January 1, 2020 had Public Act 101-31
11  this amendatory Act of the 101st General Assembly been in
12  effect, may apply for and obtain an exemption for
13  subsequent purchases of computer equipment or enabling
14  software purchased or leased to upgrade, supplement, or
15  replace computer equipment or enabling software purchased
16  or leased in the original investment that would have
17  qualified.
18  The Department of Commerce and Economic Opportunity
19  shall grant a certificate of exemption under this item
20  (44) to qualified data centers as defined by Section
21  605-1025 of the Department of Commerce and Economic
22  Opportunity Law of the Civil Administrative Code of
23  Illinois.
24  For the purposes of this item (44):
25  "Data center" means a building or a series of
26  buildings rehabilitated or constructed to house

 

 

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

 

 

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

 

 

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1  2-70. As used in this item (46):
2  "Breast pump" means an electrically controlled or
3  manually controlled pump device designed or marketed to be
4  used to express milk from a human breast during lactation,
5  including the pump device and any battery, AC adapter, or
6  other power supply unit that is used to power the pump
7  device and is packaged and sold with the pump device at the
8  time of sale.
9  "Breast pump collection and storage supplies" means
10  items of tangible personal property designed or marketed
11  to be used in conjunction with a breast pump to collect
12  milk expressed from a human breast and to store collected
13  milk until it is ready for consumption.
14  "Breast pump collection and storage supplies"
15  includes, but is not limited to: breast shields and breast
16  shield connectors; breast pump tubes and tubing adapters;
17  breast pump valves and membranes; backflow protectors and
18  backflow protector adaptors; bottles and bottle caps
19  specific to the operation of the breast pump; and breast
20  milk storage bags.
21  "Breast pump collection and storage supplies" does not
22  include: (1) bottles and bottle caps not specific to the
23  operation of the breast pump; (2) breast pump travel bags
24  and other similar carrying accessories, including ice
25  packs, labels, and other similar products; (3) breast pump
26  cleaning supplies; (4) nursing bras, bra pads, breast

 

 

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1  shells, and other similar products; and (5) creams,
2  ointments, and other similar products that relieve
3  breastfeeding-related symptoms or conditions of the
4  breasts or nipples, unless sold as part of a breast pump
5  kit that is pre-packaged by the breast pump manufacturer
6  or distributor.
7  "Breast pump kit" means a kit that: (1) contains no
8  more than a breast pump, breast pump collection and
9  storage supplies, a rechargeable battery for operating the
10  breast pump, a breastmilk cooler, bottle stands, ice
11  packs, and a breast pump carrying case; and (2) is
12  pre-packaged as a breast pump kit by the breast pump
13  manufacturer or distributor.
14  (47) (46) Tangible personal property sold by or on
15  behalf of the State Treasurer pursuant to the Revised
16  Uniform Unclaimed Property Act. This item (47) (46) is
17  exempt from the provisions of Section 2-70.
18  (48) Beginning July 1, 2023, prescription medicines
19  and medical devices (including, but not limited to,
20  products classified as Class III medical devices by the
21  United States Food and Drug Administration that are used
22  for cancer treatment pursuant to a prescription, as well
23  as any accessories and components related to those
24  devices). This item (48) is exempt from the provisions of
25  Section 2-70.
26  (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;

 

 

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1  101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
2  8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
3  102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
4  eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
5  (35 ILCS 120/2-10)
6  Sec. 2-10. Rate of tax. Unless otherwise provided in this
7  Section, the tax imposed by this Act is at the rate of 6.25% of
8  gross receipts from sales of tangible personal property made
9  in the course of business.
10  Beginning on July 1, 2000 and through December 31, 2000,
11  with respect to motor fuel, as defined in Section 1.1 of the
12  Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13  the Use Tax Act, the tax is imposed at the rate of 1.25%.
14  Beginning on August 6, 2010 through August 15, 2010, and
15  beginning again on August 5, 2022 through August 14, 2022,
16  with respect to sales tax holiday items as defined in Section
17  2-8 of this Act, the tax is imposed at the rate of 1.25%.
18  Within 14 days after July 1, 2000 (the effective date of
19  Public Act 91-872) this amendatory Act of the 91st General
20  Assembly, each retailer of motor fuel and gasohol shall cause
21  the following notice to be posted in a prominently visible
22  place on each retail dispensing device that is used to
23  dispense motor fuel or gasohol in the State of Illinois: "As of
24  July 1, 2000, the State of Illinois has eliminated the State's
25  share of sales tax on motor fuel and gasohol through December

 

 

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1  31, 2000. The price on this pump should reflect the
2  elimination of the tax." The notice shall be printed in bold
3  print on a sign that is no smaller than 4 inches by 8 inches.
4  The sign shall be clearly visible to customers. Any retailer
5  who fails to post or maintain a required sign through December
6  31, 2000 is guilty of a petty offense for which the fine shall
7  be $500 per day per each retail premises where a violation
8  occurs.
9  With respect to gasohol, as defined in the Use Tax Act, the
10  tax imposed by this Act applies to (i) 70% of the proceeds of
11  sales made on or after January 1, 1990, and before July 1,
12  2003, (ii) 80% of the proceeds of sales made on or after July
13  1, 2003 and on or before July 1, 2017, and (iii) 100% of the
14  proceeds of sales made thereafter. If, at any time, however,
15  the tax under this Act on sales of gasohol, as defined in the
16  Use Tax Act, is imposed at the rate of 1.25%, then the tax
17  imposed by this Act applies to 100% of the proceeds of sales of
18  gasohol made during that time.
19  With respect to majority blended ethanol fuel, as defined
20  in the Use Tax Act, the tax imposed by this Act does not apply
21  to the proceeds of sales made on or after July 1, 2003 and on
22  or before December 31, 2023 but applies to 100% of the proceeds
23  of sales made thereafter.
24  With respect to biodiesel blends, as defined in the Use
25  Tax Act, with no less than 1% and no more than 10% biodiesel,
26  the tax imposed by this Act applies to (i) 80% of the proceeds

 

 

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1  of sales made on or after July 1, 2003 and on or before
2  December 31, 2018 and (ii) 100% of the proceeds of sales made
3  after December 31, 2018 and before January 1, 2024. On and
4  after January 1, 2024 and on or before December 31, 2030, the
5  taxation of biodiesel, renewable diesel, and biodiesel blends
6  shall be as provided in Section 3-5.1 of the Use Tax Act. If,
7  at any time, however, the tax under this Act on sales of
8  biodiesel blends, as defined in the Use Tax Act, with no less
9  than 1% and no more than 10% biodiesel is imposed at the rate
10  of 1.25%, then the tax imposed by this Act applies to 100% of
11  the proceeds of sales of biodiesel blends with no less than 1%
12  and no more than 10% biodiesel made during that time.
13  With respect to biodiesel, as defined in the Use Tax Act,
14  and biodiesel blends, as defined in the Use Tax Act, with more
15  than 10% but no more than 99% biodiesel, the tax imposed by
16  this Act does not apply to the proceeds of sales made on or
17  after July 1, 2003 and on or before December 31, 2023. On and
18  after January 1, 2024 and on or before December 31, 2030, the
19  taxation of biodiesel, renewable diesel, and biodiesel blends
20  shall be as provided in Section 3-5.1 of the Use Tax Act.
21  Until July 1, 2022 and beginning again on July 1, 2023,
22  with respect to food for human consumption that is to be
23  consumed off the premises where it is sold (other than
24  alcoholic beverages, food consisting of or infused with adult
25  use cannabis, soft drinks, and food that has been prepared for
26  immediate consumption), the tax is imposed at the rate of 1%.

 

 

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1  Beginning July 1, 2022 and until July 1, 2023, with respect to
2  food for human consumption that is to be consumed off the
3  premises where it is sold (other than alcoholic beverages,
4  food consisting of or infused with adult use cannabis, soft
5  drinks, and food that has been prepared for immediate
6  consumption), the tax is imposed at the rate of 0%.
7  With respect to prescription and nonprescription medicines
8  and , drugs, medical appliances that are not exempt under item
9  (48) of Section 2-5, products classified as Class III medical
10  devices by the United States Food and Drug Administration that
11  are used for cancer treatment pursuant to a prescription, as
12  well as any accessories and components related to those
13  devices, modifications to a motor vehicle for the purpose of
14  rendering it usable by a person with a disability, and
15  insulin, blood sugar testing materials, syringes, and needles
16  used by human diabetics, the tax is imposed at the rate of 1%.
17  For the purposes of this Section, until September 1, 2009: the
18  term "soft drinks" means any complete, finished, ready-to-use,
19  non-alcoholic drink, whether carbonated or not, including, but
20  not limited to, soda water, cola, fruit juice, vegetable
21  juice, carbonated water, and all other preparations commonly
22  known as soft drinks of whatever kind or description that are
23  contained in any closed or sealed bottle, can, carton, or
24  container, regardless of size; but "soft drinks" does not
25  include coffee, tea, non-carbonated water, infant formula,
26  milk or milk products as defined in the Grade A Pasteurized

 

 

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1  Milk and Milk Products Act, or drinks containing 50% or more
2  natural fruit or vegetable juice.
3  Notwithstanding any other provisions of this Act,
4  beginning September 1, 2009, "soft drinks" means non-alcoholic
5  beverages that contain natural or artificial sweeteners. "Soft
6  drinks" does do not include beverages that contain milk or
7  milk products, soy, rice or similar milk substitutes, or
8  greater than 50% of vegetable or fruit juice by volume.
9  Until August 1, 2009, and notwithstanding any other
10  provisions of this Act, "food for human consumption that is to
11  be consumed off the premises where it is sold" includes all
12  food sold through a vending machine, except soft drinks and
13  food products that are dispensed hot from a vending machine,
14  regardless of the location of the vending machine. Beginning
15  August 1, 2009, and notwithstanding any other provisions of
16  this Act, "food for human consumption that is to be consumed
17  off the premises where it is sold" includes all food sold
18  through a vending machine, except soft drinks, candy, and food
19  products that are dispensed hot from a vending machine,
20  regardless of the location of the vending machine.
21  Notwithstanding any other provisions of this Act,
22  beginning September 1, 2009, "food for human consumption that
23  is to be consumed off the premises where it is sold" does not
24  include candy. For purposes of this Section, "candy" means a
25  preparation of sugar, honey, or other natural or artificial
26  sweeteners in combination with chocolate, fruits, nuts or

 

 

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1  other ingredients or flavorings in the form of bars, drops, or
2  pieces. "Candy" does not include any preparation that contains
3  flour or requires refrigeration.
4  Notwithstanding any other provisions of this Act,
5  beginning September 1, 2009, "nonprescription medicines and
6  drugs" does not include grooming and hygiene products. For
7  purposes of this Section, "grooming and hygiene products"
8  includes, but is not limited to, soaps and cleaning solutions,
9  shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10  lotions and screens, unless those products are available by
11  prescription only, regardless of whether the products meet the
12  definition of "over-the-counter-drugs". For the purposes of
13  this paragraph, "over-the-counter-drug" means a drug for human
14  use that contains a label that identifies the product as a drug
15  as required by 21 CFR C.F.R.  201.66. The
16  "over-the-counter-drug" label includes:
17  (A) a A "Drug Facts" panel; or
18  (B) a A statement of the "active ingredient(s)" with a
19  list of those ingredients contained in the compound,
20  substance or preparation.
21  Beginning on January 1, 2014 (the effective date of Public
22  Act 98-122) this amendatory Act of the 98th General Assembly,
23  "prescription and nonprescription medicines and drugs"
24  includes medical cannabis purchased from a registered
25  dispensing organization under the Compassionate Use of Medical
26  Cannabis Program Act.

 

 

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1  As used in this Section, "adult use cannabis" means
2  cannabis subject to tax under the Cannabis Cultivation
3  Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4  and does not include cannabis subject to tax under the
5  Compassionate Use of Medical Cannabis Program Act.
6  (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
7  102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
8  4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
9  102-700, Article 65, Section 65-10, eff. 4-19-22; revised
10  6-1-22.)
11  Section 99. Effective date. This Act takes effect July 1,
12  2023.

 

 

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