Illinois Senate Bill SB3128 Introduced / Bill

                    103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3128 Introduced 2/2/2024, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers, baby wipes, car seats, infant formula, and bottles are exempt from the taxes imposed under the Acts. LRB103 38386 HLH 68521 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3128 Introduced 2/2/2024, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:  35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5  Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers, baby wipes, car seats, infant formula, and bottles are exempt from the taxes imposed under the Acts.  LRB103 38386 HLH 68521 b     LRB103 38386 HLH 68521 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3128 Introduced 2/2/2024, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers, baby wipes, car seats, infant formula, and bottles are exempt from the taxes imposed under the Acts.
LRB103 38386 HLH 68521 b     LRB103 38386 HLH 68521 b
    LRB103 38386 HLH 68521 b
A BILL FOR
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  SB3128  LRB103 38386 HLH 68521 b
1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Use Tax Act is amended by changing Section
5  3-5 as follows:
6  (35 ILCS 105/3-5)
7  Sec. 3-5. Exemptions. Use of the following tangible
8  personal property is exempt from the tax imposed by this Act:
9  (1) Personal property purchased from a corporation,
10  society, association, foundation, institution, or
11  organization, other than a limited liability company, that is
12  organized and operated as a not-for-profit service enterprise
13  for the benefit of persons 65 years of age or older if the
14  personal property was not purchased by the enterprise for the
15  purpose of resale by the enterprise.
16  (2) Personal property purchased by a not-for-profit
17  Illinois county fair association for use in conducting,
18  operating, or promoting the county fair.
19  (3) Personal property purchased by a not-for-profit arts
20  or cultural organization that establishes, by proof required
21  by the Department by rule, that it has received an exemption
22  under Section 501(c)(3) of the Internal Revenue Code and that
23  is organized and operated primarily for the presentation or

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3128 Introduced 2/2/2024, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5 35 ILCS 105/3-5  35 ILCS 110/3-5  35 ILCS 115/3-5  35 ILCS 120/2-5
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers, baby wipes, car seats, infant formula, and bottles are exempt from the taxes imposed under the Acts.
LRB103 38386 HLH 68521 b     LRB103 38386 HLH 68521 b
    LRB103 38386 HLH 68521 b
A BILL FOR

 

 

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



    LRB103 38386 HLH 68521 b

 

 



 

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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) Except as otherwise provided in this Act, personal
12  property purchased by a governmental body, by a corporation,
13  society, association, foundation, or institution organized and
14  operated exclusively for charitable, religious, or educational
15  purposes, or by a not-for-profit corporation, society,
16  association, foundation, institution, or organization that has
17  no compensated officers or employees and that is organized and
18  operated primarily for the recreation of persons 55 years of
19  age or older. A limited liability company may qualify for the
20  exemption under this paragraph only if the limited liability
21  company is organized and operated exclusively for educational
22  purposes. On and after July 1, 1987, however, no entity
23  otherwise eligible for this exemption shall make tax-free
24  purchases unless it has an active exemption identification
25  number issued by the Department.
26  (5) Until July 1, 2003, a passenger car that is a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  this Act or the Service Use Tax Act, as the case may be, if the
2  tax has not been paid by the lessor. If a lessor improperly
3  collects any such amount from the lessee, the lessee shall
4  have a legal right to claim a refund of that amount from the
5  lessor. If, however, that amount is not refunded to the lessee
6  for any reason, the lessor is liable to pay that amount to the
7  Department.
8  (23) Personal property purchased by a lessor who leases
9  the property, under a lease of one year or longer executed or
10  in effect at the time the lessor would otherwise be subject to
11  the tax imposed by this Act, to a governmental body that has
12  been issued an active sales tax exemption identification
13  number by the Department under Section 1g of the Retailers'
14  Occupation Tax Act. If the property is leased in a manner that
15  does not qualify for this exemption or used in any other
16  non-exempt manner, the lessor shall be liable for the tax
17  imposed under this Act or the Service Use Tax Act, as the case
18  may be, based on the fair market value of the property at the
19  time the non-qualifying use occurs. No lessor shall collect or
20  attempt to collect an amount (however designated) that
21  purports to reimburse that lessor for the tax imposed by this
22  Act or the Service Use Tax Act, as the case may be, if the tax
23  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  (24) Beginning with taxable years ending on or after
4  December 31, 1995 and ending with taxable years ending on or
5  before December 31, 2004, personal property that is donated
6  for disaster relief to be used in a State or federally declared
7  disaster area in Illinois or bordering Illinois by a
8  manufacturer or retailer that is registered in this State to a
9  corporation, society, association, foundation, or institution
10  that has been issued a sales tax exemption identification
11  number by the Department that assists victims of the disaster
12  who reside within the declared disaster area.
13  (25) Beginning with taxable years ending on or after
14  December 31, 1995 and ending with taxable years ending on or
15  before December 31, 2004, personal property that is used in
16  the performance of infrastructure repairs in this State,
17  including, but not limited to, municipal roads and streets,
18  access roads, bridges, sidewalks, waste disposal systems,
19  water and sewer line extensions, water distribution and
20  purification facilities, storm water drainage and retention
21  facilities, and sewage treatment facilities, resulting from a
22  State or federally declared disaster in Illinois or bordering
23  Illinois when such repairs are initiated on facilities located
24  in the declared disaster area within 6 months after the
25  disaster.
26  (26) Beginning July 1, 1999, game or game birds purchased

 

 

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

 

 

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

 

 

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

 

 

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1  collects any such amount from the lessee, the lessee shall
2  have a legal right to claim a refund of that amount from the
3  lessor. If, however, that amount is not refunded to the lessee
4  for any reason, the lessor is liable to pay that amount to the
5  Department. This paragraph is exempt from the provisions of
6  Section 3-90.
7  (32) Beginning on August 2, 2001 (the effective date of
8  Public Act 92-227), personal property purchased by a lessor
9  who leases the property, under a lease of one year or longer
10  executed or in effect at the time the lessor would otherwise be
11  subject to the tax imposed by this Act, to a governmental body
12  that has been issued an active sales tax exemption
13  identification number by the Department under Section 1g of
14  the Retailers' Occupation Tax Act. If the property is leased
15  in a manner that does not qualify for this exemption or used in
16  any other nonexempt manner, the lessor shall be liable for the
17  tax imposed under this Act or the Service Use Tax Act, as the
18  case may be, based on the fair market value of the property at
19  the time the nonqualifying use occurs. No lessor shall collect
20  or attempt to collect an amount (however designated) that
21  purports to reimburse that lessor for the tax imposed by this
22  Act or the Service Use Tax Act, as the case may be, if the tax
23  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. This paragraph is exempt from the provisions of
3  Section 3-90.
4  (33) On and after July 1, 2003 and through June 30, 2004,
5  the use in this State of motor vehicles of the second division
6  with a gross vehicle weight in excess of 8,000 pounds and that
7  are subject to the commercial distribution fee imposed under
8  Section 3-815.1 of the Illinois Vehicle Code. Beginning on
9  July 1, 2004 and through June 30, 2005, the use in this State
10  of motor vehicles of the second division: (i) with a gross
11  vehicle weight rating in excess of 8,000 pounds; (ii) that are
12  subject to the commercial distribution fee imposed under
13  Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
14  are primarily used for commercial purposes. Through June 30,
15  2005, this exemption applies to repair and replacement parts
16  added after the initial purchase of such a motor vehicle if
17  that motor vehicle is used in a manner that would qualify for
18  the rolling stock exemption otherwise provided for in this
19  Act. For purposes of this paragraph, the term "used for
20  commercial purposes" means the transportation of persons or
21  property in furtherance of any commercial or industrial
22  enterprise, whether for-hire or not.
23  (34) Beginning January 1, 2008, tangible personal property
24  used in the construction or maintenance of a community water
25  supply, as defined under Section 3.145 of the Environmental
26  Protection Act, that is operated by a not-for-profit

 

 

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1  corporation that holds a valid water supply permit issued
2  under Title IV of the Environmental Protection Act. This
3  paragraph is exempt from the provisions of Section 3-90.
4  (35) Beginning January 1, 2010 and continuing through
5  December 31, 2029, materials, parts, equipment, components,
6  and furnishings incorporated into or upon an aircraft as part
7  of the modification, refurbishment, completion, replacement,
8  repair, or maintenance of the aircraft. This exemption
9  includes consumable supplies used in the modification,
10  refurbishment, completion, replacement, repair, and
11  maintenance of aircraft. However, until January 1, 2024, this
12  exemption excludes any materials, parts, equipment,
13  components, and consumable supplies used in the modification,
14  replacement, repair, and maintenance of aircraft engines or
15  power plants, whether such engines or power plants are
16  installed or uninstalled upon any such aircraft. "Consumable
17  supplies" include, but are not limited to, adhesive, tape,
18  sandpaper, general purpose lubricants, cleaning solution,
19  latex gloves, and protective films.
20  Beginning January 1, 2010 and continuing through December
21  31, 2023, this exemption applies only to the use of qualifying
22  tangible personal property by persons who modify, refurbish,
23  complete, repair, replace, or maintain aircraft and who (i)
24  hold an Air Agency Certificate and are empowered to operate an
25  approved repair station by the Federal Aviation
26  Administration, (ii) have a Class IV Rating, and (iii) conduct

 

 

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1  operations in accordance with Part 145 of the Federal Aviation
2  Regulations. From January 1, 2024 through December 31, 2029,
3  this exemption applies only to the use of qualifying tangible
4  personal property by: (A) persons who modify, refurbish,
5  complete, repair, replace, or maintain aircraft and who (i)
6  hold an Air Agency Certificate and are empowered to operate an
7  approved repair station by the Federal Aviation
8  Administration, (ii) have a Class IV Rating, and (iii) conduct
9  operations in accordance with Part 145 of the Federal Aviation
10  Regulations; and (B) persons who engage in the modification,
11  replacement, repair, and maintenance of aircraft engines or
12  power plants without regard to whether or not those persons
13  meet the qualifications of item (A).
14  The exemption does not include aircraft operated by a
15  commercial air carrier providing scheduled passenger air
16  service pursuant to authority issued under Part 121 or Part
17  129 of the Federal Aviation Regulations. The changes made to
18  this paragraph (35) by Public Act 98-534 are declarative of
19  existing law. It is the intent of the General Assembly that the
20  exemption under this paragraph (35) applies continuously from
21  January 1, 2010 through December 31, 2024; however, no claim
22  for credit or refund is allowed for taxes paid as a result of
23  the disallowance of this exemption on or after January 1, 2015
24  and prior to February 5, 2020 (the effective date of Public Act
25  101-629).
26  (36) Tangible personal property purchased by a

 

 

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1  public-facilities corporation, as described in Section
2  11-65-10 of the Illinois Municipal Code, for purposes of
3  constructing or furnishing a municipal convention hall, but
4  only if the legal title to the municipal convention hall is
5  transferred to the municipality without any further
6  consideration by or on behalf of the municipality at the time
7  of the completion of the municipal convention hall or upon the
8  retirement or redemption of any bonds or other debt
9  instruments issued by the public-facilities corporation in
10  connection with the development of the municipal convention
11  hall. This exemption includes existing public-facilities
12  corporations as provided in Section 11-65-25 of the Illinois
13  Municipal Code. This paragraph is exempt from the provisions
14  of Section 3-90.
15  (37) Beginning January 1, 2017 and through December 31,
16  2026, menstrual pads, tampons, and menstrual cups.
17  (38) Merchandise that is subject to the Rental Purchase
18  Agreement Occupation and Use Tax. The purchaser must certify
19  that the item is purchased to be rented subject to a
20  rental-purchase rental purchase agreement, as defined in the
21  Rental-Purchase Rental Purchase Agreement Act, and provide
22  proof of registration under the Rental Purchase Agreement
23  Occupation and Use Tax Act. This paragraph is exempt from the
24  provisions of Section 3-90.
25  (39) Tangible personal property purchased by a purchaser
26  who is exempt from the tax imposed by this Act by operation of

 

 

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1  federal law. This paragraph is exempt from the provisions of
2  Section 3-90.
3  (40) Qualified tangible personal property used in the
4  construction or operation of a data center that has been
5  granted a certificate of exemption by the Department of
6  Commerce and Economic Opportunity, whether that tangible
7  personal property is purchased by the owner, operator, or
8  tenant of the data center or by a contractor or subcontractor
9  of the owner, operator, or tenant. Data centers that would
10  have qualified for a certificate of exemption prior to January
11  1, 2020 had Public Act 101-31 been in effect may apply for and
12  obtain an exemption for subsequent purchases of computer
13  equipment or enabling software purchased or leased to upgrade,
14  supplement, or replace computer equipment or enabling software
15  purchased or leased in the original investment that would have
16  qualified.
17  The Department of Commerce and Economic Opportunity shall
18  grant a certificate of exemption under this item (40) to
19  qualified data centers as defined by Section 605-1025 of the
20  Department of Commerce and Economic Opportunity Law of the
21  Civil Administrative Code of Illinois.
22  For the purposes of this item (40):
23  "Data center" means a building or a series of
24  buildings rehabilitated or constructed to house working
25  servers in one physical location or multiple sites within
26  the State of Illinois.

 

 

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

 

 

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1  Commerce and Economic Opportunity.
2  This item (40) is exempt from the provisions of Section
3  3-90.
4  (41) Beginning July 1, 2022, breast pumps, breast pump
5  collection and storage supplies, and breast pump kits. This
6  item (41) is exempt from the provisions of Section 3-90. As
7  used in this item (41):
8  "Breast pump" means an electrically controlled or
9  manually controlled pump device designed or marketed to be
10  used to express milk from a human breast during lactation,
11  including the pump device and any battery, AC adapter, or
12  other power supply unit that is used to power the pump
13  device and is packaged and sold with the pump device at the
14  time of sale.
15  "Breast pump collection and storage supplies" means
16  items of tangible personal property designed or marketed
17  to be used in conjunction with a breast pump to collect
18  milk expressed from a human breast and to store collected
19  milk until it is ready for consumption.
20  "Breast pump collection and storage supplies"
21  includes, but is not limited to: breast shields and breast
22  shield connectors; breast pump tubes and tubing adapters;
23  breast pump valves and membranes; backflow protectors and
24  backflow protector adaptors; bottles and bottle caps
25  specific to the operation of the breast pump; and breast
26  milk storage bags.

 

 

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1  "Breast pump collection and storage supplies" does not
2  include: (1) bottles and bottle caps not specific to the
3  operation of the breast pump; (2) breast pump travel bags
4  and other similar carrying accessories, including ice
5  packs, labels, and other similar products; (3) breast pump
6  cleaning supplies; (4) nursing bras, bra pads, breast
7  shells, and other similar products; and (5) creams,
8  ointments, and other similar products that relieve
9  breastfeeding-related symptoms or conditions of the
10  breasts or nipples, unless sold as part of a breast pump
11  kit that is pre-packaged by the breast pump manufacturer
12  or distributor.
13  "Breast pump kit" means a kit that: (1) contains no
14  more than a breast pump, breast pump collection and
15  storage supplies, a rechargeable battery for operating the
16  breast pump, a breastmilk cooler, bottle stands, ice
17  packs, and a breast pump carrying case; and (2) is
18  pre-packaged as a breast pump kit by the breast pump
19  manufacturer or distributor.
20  (42) Tangible personal property sold by or on behalf of
21  the State Treasurer pursuant to the Revised Uniform Unclaimed
22  Property Act. This item (42) is exempt from the provisions of
23  Section 3-90.
24  (43) Beginning on January 1, 2024, tangible personal
25  property purchased by an active duty member of the armed
26  forces of the United States who presents valid military

 

 

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1  identification and purchases the property using a form of
2  payment where the federal government is the payor. The member
3  of the armed forces must complete, at the point of sale, a form
4  prescribed by the Department of Revenue documenting that the
5  transaction is eligible for the exemption under this
6  paragraph. Retailers must keep the form as documentation of
7  the exemption in their records for a period of not less than 6
8  years. "Armed forces of the United States" means the United
9  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
10  This paragraph is exempt from the provisions of Section 3-90.
11  (44) Diapers, baby wipes, car seats, infant formula, and
12  bottles suitable for feeding infants. This item (43) is exempt
13  from the provisions of Section 3-90.
14  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
15  Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
16  eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
17  Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
18  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
19  revised 12-12-23.)
20  Section 10. The Service Use Tax Act is amended by changing
21  Section 3-5 as follows:
22  (35 ILCS 110/3-5)
23  Sec. 3-5. Exemptions. Use of the following tangible
24  personal property is exempt from the tax imposed by this Act:

 

 

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

 

 

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

 

 

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

 

 

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1  Beginning on January 1, 2024, farm machinery and equipment
2  also includes electrical power generation equipment used
3  primarily for production agriculture.
4  This item (7) is exempt from the provisions of Section
5  3-75.
6  (8) Until June 30, 2013, fuel and petroleum products sold
7  to or used by an air common carrier, certified by the carrier
8  to be used for consumption, shipment, or storage in the
9  conduct of its business as an air common carrier, for a flight
10  destined for or returning from a location or locations outside
11  the United States without regard to previous or subsequent
12  domestic stopovers.
13  Beginning July 1, 2013, fuel and petroleum products sold
14  to or used by an air carrier, certified by the carrier to be
15  used for consumption, shipment, or storage in the conduct of
16  its business as an air common carrier, for a flight that (i) is
17  engaged in foreign trade or is engaged in trade between the
18  United States and any of its possessions and (ii) transports
19  at least one individual or package for hire from the city of
20  origination to the city of final destination on the same
21  aircraft, without regard to a change in the flight number of
22  that aircraft.
23  (9) Proceeds of mandatory service charges separately
24  stated on customers' bills for the purchase and consumption of
25  food and beverages acquired as an incident to the purchase of a
26  service from a serviceman, to the extent that the proceeds of

 

 

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

 

 

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

 

 

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1  otherwise be subject to the tax imposed by this Act, to a
2  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 non-exempt 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 non-qualifying 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.
19  (16) Personal property purchased by a lessor who leases
20  the property, under a lease of one year or longer executed or
21  in effect at the time the lessor would otherwise be subject to
22  the tax imposed by this Act, to a governmental body that has
23  been issued an active tax exemption identification number by
24  the Department under Section 1g of the Retailers' Occupation
25  Tax Act. If the property is leased in a manner that does not
26  qualify for this exemption or is used in any other non-exempt

 

 

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

 

 

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1  including, but not limited to, municipal roads and streets,
2  access roads, bridges, sidewalks, waste disposal systems,
3  water and sewer line extensions, water distribution and
4  purification facilities, storm water drainage and retention
5  facilities, and sewage treatment facilities, resulting from a
6  State or federally declared disaster in Illinois or bordering
7  Illinois when such repairs are initiated on facilities located
8  in the declared disaster area within 6 months after the
9  disaster.
10  (19) Beginning July 1, 1999, game or game birds purchased
11  at a "game breeding and hunting preserve area" as that term is
12  used in the Wildlife Code. This paragraph is exempt from the
13  provisions of Section 3-75.
14  (20) A motor vehicle, as that term is defined in Section
15  1-146 of the Illinois Vehicle Code, that is donated to a
16  corporation, limited liability company, society, association,
17  foundation, or institution that is determined by the
18  Department to be organized and operated exclusively for
19  educational purposes. For purposes of this exemption, "a
20  corporation, limited liability company, society, association,
21  foundation, or institution organized and operated exclusively
22  for educational purposes" means all tax-supported public
23  schools, private schools that offer systematic instruction in
24  useful branches of learning by methods common to public
25  schools and that compare favorably in their scope and
26  intensity with the course of study presented in tax-supported

 

 

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

 

 

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

 

 

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

 

 

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1  imposed under this Act or the Use Tax Act, as the case may be,
2  based on the fair market value of the property at the time the
3  nonqualifying use occurs. No lessor shall collect or attempt
4  to collect an amount (however designated) that purports to
5  reimburse that lessor for the tax imposed by this Act or the
6  Use Tax Act, as the case may be, if the tax has not been paid
7  by the lessor. If a lessor improperly collects any such amount
8  from the lessee, the lessee shall have a legal right to claim a
9  refund of that amount from the lessor. If, however, that
10  amount is not refunded to the lessee for any reason, the lessor
11  is liable to pay that amount to the Department. This paragraph
12  is exempt from the provisions of Section 3-75.
13  (26) Beginning January 1, 2008, tangible personal property
14  used in the construction or maintenance of a community water
15  supply, as defined under Section 3.145 of the Environmental
16  Protection Act, that is operated by a not-for-profit
17  corporation that holds a valid water supply permit issued
18  under Title IV of the Environmental Protection Act. This
19  paragraph is exempt from the provisions of Section 3-75.
20  (27) Beginning January 1, 2010 and continuing through
21  December 31, 2029, materials, parts, equipment, components,
22  and furnishings incorporated into or upon an aircraft as part
23  of the modification, refurbishment, completion, replacement,
24  repair, or maintenance of the aircraft. This exemption
25  includes consumable supplies used in the modification,
26  refurbishment, completion, replacement, repair, and

 

 

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1  maintenance of aircraft. However, until January 1, 2024, this
2  exemption excludes any materials, parts, equipment,
3  components, and consumable supplies used in the modification,
4  replacement, repair, and maintenance of aircraft engines or
5  power plants, whether such engines or power plants are
6  installed or uninstalled upon any such aircraft. "Consumable
7  supplies" include, but are not limited to, adhesive, tape,
8  sandpaper, general purpose lubricants, cleaning solution,
9  latex gloves, and protective films.
10  Beginning January 1, 2010 and continuing through December
11  31, 2023, this exemption applies only to the use of qualifying
12  tangible personal property transferred incident to the
13  modification, refurbishment, completion, replacement, repair,
14  or maintenance of aircraft by persons who (i) hold an Air
15  Agency Certificate and are empowered to operate an approved
16  repair station by the Federal Aviation Administration, (ii)
17  have a Class IV Rating, and (iii) conduct operations in
18  accordance with Part 145 of the Federal Aviation Regulations.
19  From January 1, 2024 through December 31, 2029, this exemption
20  applies only to the use of qualifying tangible personal
21  property by: (A) persons who modify, refurbish, complete,
22  repair, replace, or maintain aircraft and who (i) hold an Air
23  Agency Certificate and are empowered to operate an approved
24  repair station by the Federal Aviation Administration, (ii)
25  have a Class IV Rating, and (iii) conduct operations in
26  accordance with Part 145 of the Federal Aviation Regulations;

 

 

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1  and (B) persons who engage in the modification, replacement,
2  repair, and maintenance of aircraft engines or power plants
3  without regard to whether or not those persons meet the
4  qualifications of item (A).
5  The exemption does not include aircraft operated by a
6  commercial air carrier providing scheduled passenger air
7  service pursuant to authority issued under Part 121 or Part
8  129 of the Federal Aviation Regulations. The changes made to
9  this paragraph (27) by Public Act 98-534 are declarative of
10  existing law. It is the intent of the General Assembly that the
11  exemption under this paragraph (27) applies continuously from
12  January 1, 2010 through December 31, 2024; however, no claim
13  for credit or refund is allowed for taxes paid as a result of
14  the disallowance of this exemption on or after January 1, 2015
15  and prior to February 5, 2020 (the effective date of Public Act
16  101-629).
17  (28) Tangible personal property purchased by a
18  public-facilities corporation, as described in Section
19  11-65-10 of the Illinois Municipal Code, for purposes of
20  constructing or furnishing a municipal convention hall, but
21  only if the legal title to the municipal convention hall is
22  transferred to the municipality without any further
23  consideration by or on behalf of the municipality at the time
24  of the completion of the municipal convention hall or upon the
25  retirement or redemption of any bonds or other debt
26  instruments issued by the public-facilities corporation in

 

 

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1  connection with the development of the municipal convention
2  hall. This exemption includes existing public-facilities
3  corporations as provided in Section 11-65-25 of the Illinois
4  Municipal Code. This paragraph is exempt from the provisions
5  of Section 3-75.
6  (29) Beginning January 1, 2017 and through December 31,
7  2026, menstrual pads, tampons, and menstrual cups.
8  (30) Tangible personal property transferred to a purchaser
9  who is exempt from the tax imposed by this Act by operation of
10  federal law. This paragraph is exempt from the provisions of
11  Section 3-75.
12  (31) Qualified tangible personal property used in the
13  construction or operation of a data center that has been
14  granted a certificate of exemption by the Department of
15  Commerce and Economic Opportunity, whether that tangible
16  personal property is purchased by the owner, operator, or
17  tenant of the data center or by a contractor or subcontractor
18  of the owner, operator, or tenant. Data centers that would
19  have qualified for a certificate of exemption prior to January
20  1, 2020 had Public Act 101-31 been in effect, may apply for and
21  obtain an exemption for subsequent purchases of computer
22  equipment or enabling software purchased or leased to upgrade,
23  supplement, or replace computer equipment or enabling software
24  purchased or leased in the original investment that would have
25  qualified.
26  The Department of Commerce and Economic Opportunity shall

 

 

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1  grant a certificate of exemption under this item (31) to
2  qualified data centers as defined by Section 605-1025 of the
3  Department of Commerce and Economic Opportunity Law of the
4  Civil Administrative Code of Illinois.
5  For the purposes of this item (31):
6  "Data center" means a building or a series of
7  buildings rehabilitated or constructed to house working
8  servers in one physical location or multiple sites within
9  the State of Illinois.
10  "Qualified tangible personal property" means:
11  electrical systems and equipment; climate control and
12  chilling equipment and systems; mechanical systems and
13  equipment; monitoring and secure systems; emergency
14  generators; hardware; computers; servers; data storage
15  devices; network connectivity equipment; racks; cabinets;
16  telecommunications cabling infrastructure; raised floor
17  systems; peripheral components or systems; software;
18  mechanical, electrical, or plumbing systems; battery
19  systems; cooling systems and towers; temperature control
20  systems; other cabling; and other data center
21  infrastructure equipment and systems necessary to operate
22  qualified tangible personal property, including fixtures;
23  and component parts of any of the foregoing, including
24  installation, maintenance, repair, refurbishment, and
25  replacement of qualified tangible personal property to
26  generate, transform, transmit, distribute, or manage

 

 

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

 

 

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

 

 

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1  pre-packaged as a breast pump kit by the breast pump
2  manufacturer or distributor.
3  (33) Tangible personal property sold by or on behalf of
4  the State Treasurer pursuant to the Revised Uniform Unclaimed
5  Property Act. This item (33) is exempt from the provisions of
6  Section 3-75.
7  (34) Beginning on January 1, 2024, tangible personal
8  property purchased by an active duty member of the armed
9  forces of the United States who presents valid military
10  identification and purchases the property using a form of
11  payment where the federal government is the payor. The member
12  of the armed forces must complete, at the point of sale, a form
13  prescribed by the Department of Revenue documenting that the
14  transaction is eligible for the exemption under this
15  paragraph. Retailers must keep the form as documentation of
16  the exemption in their records for a period of not less than 6
17  years. "Armed forces of the United States" means the United
18  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
19  This paragraph is exempt from the provisions of Section 3-75.
20  (35) Diapers, baby wipes, car seats, infant formula, and
21  bottles suitable for feeding infants. This item (35) is exempt
22  from the provisions of Section 3-75.
23  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
24  Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
25  75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
26  Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,

 

 

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1  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2  revised 12-12-23.)
3  Section 15. The Service Occupation Tax Act is amended by
4  changing Section 3-5 as follows:
5  (35 ILCS 115/3-5)
6  Sec. 3-5. Exemptions. The following tangible personal
7  property is exempt from the tax imposed by this Act:
8  (1) Personal property sold by a corporation, society,
9  association, foundation, institution, or organization, other
10  than a limited liability company, that is organized and
11  operated as a not-for-profit service enterprise for the
12  benefit of persons 65 years of age or older if the personal
13  property was not purchased by the enterprise for the purpose
14  of resale by the enterprise.
15  (2) Personal property purchased by a not-for-profit
16  Illinois county fair association for use in conducting,
17  operating, or promoting the county fair.
18  (3) Personal property purchased by any not-for-profit arts
19  or cultural organization that establishes, by proof required
20  by the Department by rule, that it has received an exemption
21  under Section 501(c)(3) of the Internal Revenue Code and that
22  is organized and operated primarily for the presentation or
23  support of arts or cultural programming, activities, or
24  services. These organizations include, but are not limited to,

 

 

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

 

 

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

 

 

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1  software, global positioning and mapping systems, and other
2  such equipment.
3  Farm machinery and equipment also includes computers,
4  sensors, software, and related equipment used primarily in the
5  computer-assisted operation of production agriculture
6  facilities, equipment, and activities such as, but not limited
7  to, the collection, monitoring, and correlation of animal and
8  crop data for the purpose of formulating animal diets and
9  agricultural chemicals.
10  Beginning on January 1, 2024, farm machinery and equipment
11  also includes electrical power generation equipment used
12  primarily for production agriculture.
13  This item (7) is exempt from the provisions of Section
14  3-55.
15  (8) Until June 30, 2013, fuel and petroleum products sold
16  to or used by an air common carrier, certified by the carrier
17  to be used for consumption, shipment, or storage in the
18  conduct of its business as an air common carrier, for a flight
19  destined for or returning from a location or locations outside
20  the United States without regard to previous or subsequent
21  domestic stopovers.
22  Beginning July 1, 2013, fuel and petroleum products sold
23  to or used by an air carrier, certified by the carrier to be
24  used for consumption, shipment, or storage in the conduct of
25  its business as an air common carrier, for a flight that (i) is
26  engaged in foreign trade or is engaged in trade between the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  (20) Beginning July 1, 1999, game or game birds sold at a
2  "game breeding and hunting preserve area" as that term is used
3  in the Wildlife Code. This paragraph is exempt from the
4  provisions of Section 3-55.
5  (21) A motor vehicle, as that term is defined in Section
6  1-146 of the Illinois Vehicle Code, that is donated to a
7  corporation, limited liability company, society, association,
8  foundation, or institution that is determined by the
9  Department to be organized and operated exclusively for
10  educational purposes. For purposes of this exemption, "a
11  corporation, limited liability company, society, association,
12  foundation, or institution organized and operated exclusively
13  for educational purposes" means all tax-supported public
14  schools, private schools that offer systematic instruction in
15  useful branches of learning by methods common to public
16  schools and that compare favorably in their scope and
17  intensity with the course of study presented in tax-supported
18  schools, and vocational or technical schools or institutes
19  organized and operated exclusively to provide a course of
20  study of not less than 6 weeks duration and designed to prepare
21  individuals to follow a trade or to pursue a manual,
22  technical, mechanical, industrial, business, or commercial
23  occupation.
24  (22) Beginning January 1, 2000, personal property,
25  including food, purchased through fundraising events for the
26  benefit of a public or private elementary or secondary school,

 

 

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

 

 

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

 

 

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

 

 

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1  instruments issued by the public-facilities corporation in
2  connection with the development of the municipal convention
3  hall. This exemption includes existing public-facilities
4  corporations as provided in Section 11-65-25 of the Illinois
5  Municipal Code. This paragraph is exempt from the provisions
6  of Section 3-55.
7  (29) Beginning January 1, 2010 and continuing through
8  December 31, 2029, materials, parts, equipment, components,
9  and furnishings incorporated into or upon an aircraft as part
10  of the modification, refurbishment, completion, replacement,
11  repair, or maintenance of the aircraft. This exemption
12  includes consumable supplies used in the modification,
13  refurbishment, completion, replacement, repair, and
14  maintenance of aircraft. However, until January 1, 2024, this
15  exemption excludes any materials, parts, equipment,
16  components, and consumable supplies used in the modification,
17  replacement, repair, and maintenance of aircraft engines or
18  power plants, whether such engines or power plants are
19  installed or uninstalled upon any such aircraft. "Consumable
20  supplies" include, but are not limited to, adhesive, tape,
21  sandpaper, general purpose lubricants, cleaning solution,
22  latex gloves, and protective films.
23  Beginning January 1, 2010 and continuing through December
24  31, 2023, this exemption applies only to the transfer of
25  qualifying tangible personal property incident to the
26  modification, refurbishment, completion, replacement, repair,

 

 

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1  or maintenance of an aircraft by persons who (i) hold an Air
2  Agency Certificate and are empowered to operate an approved
3  repair station by the Federal Aviation Administration, (ii)
4  have a Class IV Rating, and (iii) conduct operations in
5  accordance with Part 145 of the Federal Aviation Regulations.
6  The exemption does not include aircraft operated by a
7  commercial air carrier providing scheduled passenger air
8  service pursuant to authority issued under Part 121 or Part
9  129 of the Federal Aviation Regulations. From January 1, 2024
10  through December 31, 2029, this exemption applies only to the
11  use of qualifying tangible personal property by: (A) persons
12  who modify, refurbish, complete, repair, replace, or maintain
13  aircraft and who (i) hold an Air Agency Certificate and are
14  empowered to operate an approved repair station by the Federal
15  Aviation Administration, (ii) have a Class IV Rating, and
16  (iii) conduct operations in accordance with Part 145 of the
17  Federal Aviation Regulations; and (B) persons who engage in
18  the modification, replacement, repair, and maintenance of
19  aircraft engines or power plants without regard to whether or
20  not those persons meet the qualifications of item (A).
21  The changes made to this paragraph (29) by Public Act
22  98-534 are declarative of existing law. It is the intent of the
23  General Assembly that the exemption under this paragraph (29)
24  applies continuously from January 1, 2010 through December 31,
25  2024; however, no claim for credit or refund is allowed for
26  taxes paid as a result of the disallowance of this exemption on

 

 

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

 

 

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

 

 

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1  property" also includes building materials physically
2  incorporated into in to the qualifying data center. To
3  document the exemption allowed under this Section, the
4  retailer must obtain from the purchaser a copy of the
5  certificate of eligibility issued by the Department of
6  Commerce and Economic Opportunity.
7  This item (32) is exempt from the provisions of Section
8  3-55.
9  (33) Beginning July 1, 2022, breast pumps, breast pump
10  collection and storage supplies, and breast pump kits. This
11  item (33) is exempt from the provisions of Section 3-55. As
12  used in this item (33):
13  "Breast pump" means an electrically controlled or
14  manually controlled pump device designed or marketed to be
15  used to express milk from a human breast during lactation,
16  including the pump device and any battery, AC adapter, or
17  other power supply unit that is used to power the pump
18  device and is packaged and sold with the pump device at the
19  time of sale.
20  "Breast pump collection and storage supplies" means
21  items of tangible personal property designed or marketed
22  to be used in conjunction with a breast pump to collect
23  milk expressed from a human breast and to store collected
24  milk until it is ready for consumption.
25  "Breast pump collection and storage supplies"
26  includes, but is not limited to: breast shields and breast

 

 

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

 

 

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1  Property Act. This item (34) is exempt from the provisions of
2  Section 3-55.
3  (35) Beginning on January 1, 2024, tangible personal
4  property purchased by an active duty member of the armed
5  forces of the United States who presents valid military
6  identification and purchases the property using a form of
7  payment where the federal government is the payor. The member
8  of the armed forces must complete, at the point of sale, a form
9  prescribed by the Department of Revenue documenting that the
10  transaction is eligible for the exemption under this
11  paragraph. Retailers must keep the form as documentation of
12  the exemption in their records for a period of not less than 6
13  years. "Armed forces of the United States" means the United
14  States Army, Navy, Air Force, Marine Corps, or Coast Guard.
15  This paragraph is exempt from the provisions of Section 3-55.
16  (36) Diapers, baby wipes, car seats, infant formula, and
17  bottles suitable for feeding infants. This item (36) is exempt
18  from the provisions of Section 3-55.
19  (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
20  Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
21  75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
22  Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
23  eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
24  revised 12-12-23.)
25  Section 20. The Retailers' Occupation Tax Act is amended

 

 

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1  by changing Section 2-5 as follows:
2  (35 ILCS 120/2-5)
3  Sec. 2-5. Exemptions. Gross receipts from proceeds from
4  the sale of the following tangible personal property are
5  exempt from the tax imposed by this Act:
6  (1) Farm chemicals.
7  (2) Farm machinery and equipment, both new and used,
8  including that manufactured on special order, certified by
9  the purchaser to be used primarily for production
10  agriculture or State or federal agricultural programs,
11  including individual replacement parts for the machinery
12  and equipment, including machinery and equipment purchased
13  for lease, and including implements of husbandry defined
14  in Section 1-130 of the Illinois Vehicle Code, farm
15  machinery and agricultural chemical and fertilizer
16  spreaders, and nurse wagons required to be registered
17  under Section 3-809 of the Illinois Vehicle Code, but
18  excluding other motor vehicles required to be registered
19  under the Illinois Vehicle Code. Horticultural polyhouses
20  or hoop houses used for propagating, growing, or
21  overwintering plants shall be considered farm machinery
22  and equipment under this item (2). Agricultural chemical
23  tender tanks and dry boxes shall include units sold
24  separately from a motor vehicle required to be licensed
25  and units sold mounted on a motor vehicle required to be

 

 

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1  licensed, if the selling price of the tender is separately
2  stated.
3  Farm machinery and equipment shall include precision
4  farming equipment that is installed or purchased to be
5  installed on farm machinery and equipment including, but
6  not limited to, tractors, harvesters, sprayers, planters,
7  seeders, or spreaders. Precision farming equipment
8  includes, but is not limited to, soil testing sensors,
9  computers, monitors, software, global positioning and
10  mapping systems, and other such equipment.
11  Farm machinery and equipment also includes computers,
12  sensors, software, and related equipment used primarily in
13  the computer-assisted operation of production agriculture
14  facilities, equipment, and activities such as, but not
15  limited to, the collection, monitoring, and correlation of
16  animal and crop data for the purpose of formulating animal
17  diets and agricultural chemicals.
18  Beginning on January 1, 2024, farm machinery and
19  equipment also includes electrical power generation
20  equipment used primarily for production agriculture.
21  This item (2) is exempt from the provisions of Section
22  2-70.
23  (3) Until July 1, 2003, distillation machinery and
24  equipment, sold as a unit or kit, assembled or installed
25  by the retailer, certified by the user to be used only for
26  the production of ethyl alcohol that will be used for

 

 

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1  consumption as motor fuel or as a component of motor fuel
2  for the personal use of the user, and not subject to sale
3  or resale.
4  (4) Until July 1, 2003 and beginning again September
5  1, 2004 through August 30, 2014, graphic arts machinery
6  and equipment, including repair and replacement parts,
7  both new and used, and including that manufactured on
8  special order or purchased for lease, certified by the
9  purchaser to be used primarily for graphic arts
10  production. Equipment includes chemicals or chemicals
11  acting as catalysts but only if the chemicals or chemicals
12  acting as catalysts effect a direct and immediate change
13  upon a graphic arts product. Beginning on July 1, 2017,
14  graphic arts machinery and equipment is included in the
15  manufacturing and assembling machinery and equipment
16  exemption under paragraph (14).
17  (5) A motor vehicle that is used for automobile
18  renting, as defined in the Automobile Renting Occupation
19  and Use Tax Act. This paragraph is exempt from the
20  provisions of Section 2-70.
21  (6) Personal property sold by a teacher-sponsored
22  student organization affiliated with an elementary or
23  secondary school located in Illinois.
24  (7) Until July 1, 2003, proceeds of that portion of
25  the selling price of a passenger car the sale of which is
26  subject to the Replacement Vehicle Tax.

 

 

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

 

 

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1  personal property sold to a governmental body, to a
2  corporation, society, association, foundation, or
3  institution organized and operated exclusively for
4  charitable, religious, or educational purposes, or to a
5  not-for-profit corporation, society, association,
6  foundation, institution, or organization that has no
7  compensated officers or employees and that is organized
8  and operated primarily for the recreation of persons 55
9  years of age or older. A limited liability company may
10  qualify for the exemption under this paragraph only if the
11  limited liability company is organized and operated
12  exclusively for educational purposes. On and after July 1,
13  1987, however, no entity otherwise eligible for this
14  exemption shall make tax-free purchases unless it has an
15  active identification number issued by the Department.
16  (12) (Blank).
17  (12-5) On and after July 1, 2003 and through June 30,
18  2004, motor vehicles of the second division with a gross
19  vehicle weight in excess of 8,000 pounds that are subject
20  to the commercial distribution fee imposed under Section
21  3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
22  2004 and through June 30, 2005, the use in this State of
23  motor vehicles of the second division: (i) with a gross
24  vehicle weight rating in excess of 8,000 pounds; (ii) that
25  are subject to the commercial distribution fee imposed
26  under Section 3-815.1 of the Illinois Vehicle Code; and

 

 

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1  (iii) that are primarily used for commercial purposes.
2  Through June 30, 2005, this exemption applies to repair
3  and replacement parts added after the initial purchase of
4  such a motor vehicle if that motor vehicle is used in a
5  manner that would qualify for the rolling stock exemption
6  otherwise provided for in this Act. For purposes of this
7  paragraph, "used for commercial purposes" means the
8  transportation of persons or property in furtherance of
9  any commercial or industrial enterprise whether for-hire
10  or not.
11  (13) Proceeds from sales to owners, lessors, or
12  shippers of tangible personal property that is utilized by
13  interstate carriers for hire for use as rolling stock
14  moving in interstate commerce and equipment operated by a
15  telecommunications provider, licensed as a common carrier
16  by the Federal Communications Commission, which is
17  permanently installed in or affixed to aircraft moving in
18  interstate commerce.
19  (14) Machinery and equipment that will be used by the
20  purchaser, or a lessee of the purchaser, primarily in the
21  process of manufacturing or assembling tangible personal
22  property for wholesale or retail sale or lease, whether
23  the sale or lease is made directly by the manufacturer or
24  by some other person, whether the materials used in the
25  process are owned by the manufacturer or some other
26  person, or whether the sale or lease is made apart from or

 

 

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1  as an incident to the seller's engaging in the service
2  occupation of producing machines, tools, dies, jigs,
3  patterns, gauges, or other similar items of no commercial
4  value on special order for a particular purchaser. The
5  exemption provided by this paragraph (14) does not include
6  machinery and equipment used in (i) the generation of
7  electricity for wholesale or retail sale; (ii) the
8  generation or treatment of natural or artificial gas for
9  wholesale or retail sale that is delivered to customers
10  through pipes, pipelines, or mains; or (iii) the treatment
11  of water for wholesale or retail sale that is delivered to
12  customers through pipes, pipelines, or mains. The
13  provisions of Public Act 98-583 are declaratory of
14  existing law as to the meaning and scope of this
15  exemption. Beginning on July 1, 2017, the exemption
16  provided by this paragraph (14) includes, but is not
17  limited to, graphic arts machinery and equipment, as
18  defined in paragraph (4) of this Section.
19  (15) Proceeds of mandatory service charges separately
20  stated on customers' bills for purchase and consumption of
21  food and beverages, to the extent that the proceeds of the
22  service charge are in fact turned over as tips or as a
23  substitute for tips to the employees who participate
24  directly in preparing, serving, hosting or cleaning up the
25  food or beverage function with respect to which the
26  service charge is imposed.

 

 

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1  (16) Tangible personal property sold to a purchaser if
2  the purchaser is exempt from use tax by operation of
3  federal law. This paragraph is exempt from the provisions
4  of Section 2-70.
5  (17) Tangible personal property sold to a common
6  carrier by rail or motor that receives the physical
7  possession of the property in Illinois and that transports
8  the property, or shares with another common carrier in the
9  transportation of the property, out of Illinois on a
10  standard uniform bill of lading showing the seller of the
11  property as the shipper or consignor of the property to a
12  destination outside Illinois, for use outside Illinois.
13  (18) Legal tender, currency, medallions, or gold or
14  silver coinage issued by the State of Illinois, the
15  government of the United States of America, or the
16  government of any foreign country, and bullion.
17  (19) Until July 1, 2003, oil field exploration,
18  drilling, and production equipment, including (i) rigs and
19  parts of rigs, rotary rigs, cable tool rigs, and workover
20  rigs, (ii) pipe and tubular goods, including casing and
21  drill strings, (iii) pumps and pump-jack units, (iv)
22  storage tanks and flow lines, (v) any individual
23  replacement part for oil field exploration, drilling, and
24  production equipment, and (vi) machinery and equipment
25  purchased for lease; but excluding motor vehicles required
26  to be registered under the Illinois Vehicle Code.

 

 

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1  (20) Photoprocessing machinery and equipment,
2  including repair and replacement parts, both new and used,
3  including that manufactured on special order, certified by
4  the purchaser to be used primarily for photoprocessing,
5  and including photoprocessing machinery and equipment
6  purchased for lease.
7  (21) Until July 1, 2028, coal and aggregate
8  exploration, mining, off-highway hauling, processing,
9  maintenance, and reclamation equipment, including
10  replacement parts and equipment, and including equipment
11  purchased for lease, but excluding motor vehicles required
12  to be registered under the Illinois Vehicle Code. The
13  changes made to this Section by Public Act 97-767 apply on
14  and after July 1, 2003, but no claim for credit or refund
15  is allowed on or after August 16, 2013 (the effective date
16  of Public Act 98-456) for such taxes paid during the
17  period beginning July 1, 2003 and ending on August 16,
18  2013 (the effective date of Public Act 98-456).
19  (22) Until June 30, 2013, fuel and petroleum products
20  sold to or used by an air carrier, certified by the carrier
21  to be used for consumption, shipment, or storage in the
22  conduct of its business as an air common carrier, for a
23  flight destined for or returning from a location or
24  locations outside the United States without regard to
25  previous or subsequent domestic stopovers.
26  Beginning July 1, 2013, fuel and petroleum products

 

 

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1  sold to or used by an air carrier, certified by the carrier
2  to be used for consumption, shipment, or storage in the
3  conduct of its business as an air common carrier, for a
4  flight that (i) is engaged in foreign trade or is engaged
5  in trade between the United States and any of its
6  possessions and (ii) transports at least one individual or
7  package for hire from the city of origination to the city
8  of final destination on the same aircraft, without regard
9  to a change in the flight number of that aircraft.
10  (23) A transaction in which the purchase order is
11  received by a florist who is located outside Illinois, but
12  who has a florist located in Illinois deliver the property
13  to the purchaser or the purchaser's donee in Illinois.
14  (24) Fuel consumed or used in the operation of ships,
15  barges, or vessels that are used primarily in or for the
16  transportation of property or the conveyance of persons
17  for hire on rivers bordering on this State if the fuel is
18  delivered by the seller to the purchaser's barge, ship, or
19  vessel while it is afloat upon that bordering river.
20  (25) Except as provided in item (25-5) of this
21  Section, a motor vehicle sold in this State to a
22  nonresident even though the motor vehicle is delivered to
23  the nonresident in this State, if the motor vehicle is not
24  to be titled in this State, and if a drive-away permit is
25  issued to the motor vehicle as provided in Section 3-603
26  of the Illinois Vehicle Code or if the nonresident

 

 

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1  purchaser has vehicle registration plates to transfer to
2  the motor vehicle upon returning to his or her home state.
3  The issuance of the drive-away permit or having the
4  out-of-state registration plates to be transferred is
5  prima facie evidence that the motor vehicle will not be
6  titled in this State.
7  (25-5) The exemption under item (25) does not apply if
8  the state in which the motor vehicle will be titled does
9  not allow a reciprocal exemption for a motor vehicle sold
10  and delivered in that state to an Illinois resident but
11  titled in Illinois. The tax collected under this Act on
12  the sale of a motor vehicle in this State to a resident of
13  another state that does not allow a reciprocal exemption
14  shall be imposed at a rate equal to the state's rate of tax
15  on taxable property in the state in which the purchaser is
16  a resident, except that the tax shall not exceed the tax
17  that would otherwise be imposed under this Act. At the
18  time of the sale, the purchaser shall execute a statement,
19  signed under penalty of perjury, of his or her intent to
20  title the vehicle in the state in which the purchaser is a
21  resident within 30 days after the sale and of the fact of
22  the payment to the State of Illinois of tax in an amount
23  equivalent to the state's rate of tax on taxable property
24  in his or her state of residence and shall submit the
25  statement to the appropriate tax collection agency in his
26  or her state of residence. In addition, the retailer must

 

 

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1  retain a signed copy of the statement in his or her
2  records. Nothing in this item shall be construed to
3  require the removal of the vehicle from this state
4  following the filing of an intent to title the vehicle in
5  the purchaser's state of residence if the purchaser titles
6  the vehicle in his or her state of residence within 30 days
7  after the date of sale. The tax collected under this Act in
8  accordance with this item (25-5) shall be proportionately
9  distributed as if the tax were collected at the 6.25%
10  general rate imposed under this Act.
11  (25-7) Beginning on July 1, 2007, no tax is imposed
12  under this Act on the sale of an aircraft, as defined in
13  Section 3 of the Illinois Aeronautics Act, if all of the
14  following conditions are met:
15  (1) the aircraft leaves this State within 15 days
16  after the later of either the issuance of the final
17  billing for the sale of the aircraft, or the
18  authorized approval for return to service, completion
19  of the maintenance record entry, and completion of the
20  test flight and ground test for inspection, as
21  required by 14 CFR 91.407;
22  (2) the aircraft is not based or registered in
23  this State after the sale of the aircraft; and
24  (3) the seller retains in his or her books and
25  records and provides to the Department a signed and
26  dated certification from the purchaser, on a form

 

 

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1  prescribed by the Department, certifying that the
2  requirements of this item (25-7) are met. The
3  certificate must also include the name and address of
4  the purchaser, the address of the location where the
5  aircraft is to be titled or registered, the address of
6  the primary physical location of the aircraft, and
7  other information that the Department may reasonably
8  require.
9  For purposes of this item (25-7):
10  "Based in this State" means hangared, stored, or
11  otherwise used, excluding post-sale customizations as
12  defined in this Section, for 10 or more days in each
13  12-month period immediately following the date of the sale
14  of the aircraft.
15  "Registered in this State" means an aircraft
16  registered with the Department of Transportation,
17  Aeronautics Division, or titled or registered with the
18  Federal Aviation Administration to an address located in
19  this State.
20  This paragraph (25-7) is exempt from the provisions of
21  Section 2-70.
22  (26) Semen used for artificial insemination of
23  livestock for direct agricultural production.
24  (27) Horses, or interests in horses, registered with
25  and meeting the requirements of any of the Arabian Horse
26  Club Registry of America, Appaloosa Horse Club, American

 

 

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1  Quarter Horse Association, United States Trotting
2  Association, or Jockey Club, as appropriate, used for
3  purposes of breeding or racing for prizes. This item (27)
4  is exempt from the provisions of Section 2-70, and the
5  exemption provided for under this item (27) applies for
6  all periods beginning May 30, 1995, but no claim for
7  credit or refund is allowed on or after January 1, 2008
8  (the effective date of Public Act 95-88) for such taxes
9  paid during the period beginning May 30, 2000 and ending
10  on January 1, 2008 (the effective date of Public Act
11  95-88).
12  (28) Computers and communications equipment utilized
13  for any hospital purpose and equipment used in the
14  diagnosis, analysis, or treatment of hospital patients
15  sold to a lessor who leases the equipment, under a lease of
16  one year or longer executed or in effect at the time of the
17  purchase, to a hospital that has been issued an active tax
18  exemption identification number by the Department under
19  Section 1g of this Act.
20  (29) Personal property sold to a lessor who leases the
21  property, under a lease of one year or longer executed or
22  in effect at the time of the purchase, to a governmental
23  body that has been issued an active tax exemption
24  identification number by the Department under Section 1g
25  of this Act.
26  (30) Beginning with taxable years ending on or after

 

 

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

 

 

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1  exempt from the provisions of Section 2-70.
2  (33) A motor vehicle, as that term is defined in
3  Section 1-146 of the Illinois Vehicle Code, that is
4  donated to a corporation, limited liability company,
5  society, association, foundation, or institution that is
6  determined by the Department to be organized and operated
7  exclusively for educational purposes. For purposes of this
8  exemption, "a corporation, limited liability company,
9  society, association, foundation, or institution organized
10  and operated exclusively for educational purposes" means
11  all tax-supported public schools, private schools that
12  offer systematic instruction in useful branches of
13  learning by methods common to public schools and that
14  compare favorably in their scope and intensity with the
15  course of study presented in tax-supported schools, and
16  vocational or technical schools or institutes organized
17  and operated exclusively to provide a course of study of
18  not less than 6 weeks duration and designed to prepare
19  individuals to follow a trade or to pursue a manual,
20  technical, mechanical, industrial, business, or commercial
21  occupation.
22  (34) Beginning January 1, 2000, personal property,
23  including food, purchased through fundraising events for
24  the benefit of a public or private elementary or secondary
25  school, a group of those schools, or one or more school
26  districts if the events are sponsored by an entity

 

 

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1  recognized by the school district that consists primarily
2  of volunteers and includes parents and teachers of the
3  school children. This paragraph does not apply to
4  fundraising events (i) for the benefit of private home
5  instruction or (ii) for which the fundraising entity
6  purchases the personal property sold at the events from
7  another individual or entity that sold the property for
8  the purpose of resale by the fundraising entity and that
9  profits from the sale to the fundraising entity. This
10  paragraph is exempt from the provisions of Section 2-70.
11  (35) Beginning January 1, 2000 and through December
12  31, 2001, new or used automatic vending machines that
13  prepare and serve hot food and beverages, including
14  coffee, soup, and other items, and replacement parts for
15  these machines. Beginning January 1, 2002 and through June
16  30, 2003, machines and parts for machines used in
17  commercial, coin-operated amusement and vending business
18  if a use or occupation tax is paid on the gross receipts
19  derived from the use of the commercial, coin-operated
20  amusement and vending machines. This paragraph is exempt
21  from the provisions of Section 2-70.
22  (35-5) Beginning August 23, 2001 and through June 30,
23  2016, food for human consumption that is to be consumed
24  off the premises where it is sold (other than alcoholic
25  beverages, soft drinks, and food that has been prepared
26  for immediate consumption) and prescription and

 

 

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1  nonprescription medicines, drugs, medical appliances, and
2  insulin, urine testing materials, syringes, and needles
3  used by diabetics, for human use, when purchased for use
4  by a person receiving medical assistance under Article V
5  of the Illinois Public Aid Code who resides in a licensed
6  long-term care facility, as defined in the Nursing Home
7  Care Act, or a licensed facility as defined in the ID/DD
8  Community Care Act, the MC/DD Act, or the Specialized
9  Mental Health Rehabilitation Act of 2013.
10  (36) Beginning August 2, 2001, computers and
11  communications equipment utilized for any hospital purpose
12  and equipment used in the diagnosis, analysis, or
13  treatment of hospital patients sold to a lessor who leases
14  the equipment, under a lease of one year or longer
15  executed or in effect at the time of the purchase, to a
16  hospital that has been issued an active tax exemption
17  identification number by the Department under Section 1g
18  of this Act. This paragraph is exempt from the provisions
19  of Section 2-70.
20  (37) Beginning August 2, 2001, personal property sold
21  to a lessor who leases the property, under a lease of one
22  year or longer executed or in effect at the time of the
23  purchase, to a governmental body that has been issued an
24  active tax exemption identification number by the
25  Department under Section 1g of this Act. This paragraph is
26  exempt from the provisions of Section 2-70.

 

 

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1  (38) Beginning on January 1, 2002 and through June 30,
2  2016, tangible personal property purchased from an
3  Illinois retailer by a taxpayer engaged in centralized
4  purchasing activities in Illinois who will, upon receipt
5  of the property in Illinois, temporarily store the
6  property in Illinois (i) for the purpose of subsequently
7  transporting it outside this State for use or consumption
8  thereafter solely outside this State or (ii) for the
9  purpose of being processed, fabricated, or manufactured
10  into, attached to, or incorporated into other tangible
11  personal property to be transported outside this State and
12  thereafter used or consumed solely outside this State. The
13  Director of Revenue shall, pursuant to rules adopted in
14  accordance with the Illinois Administrative Procedure Act,
15  issue a permit to any taxpayer in good standing with the
16  Department who is eligible for the exemption under this
17  paragraph (38). The permit issued under this paragraph
18  (38) shall authorize the holder, to the extent and in the
19  manner specified in the rules adopted under this Act, to
20  purchase tangible personal property from a retailer exempt
21  from the taxes imposed by this Act. Taxpayers shall
22  maintain all necessary books and records to substantiate
23  the use and consumption of all such tangible personal
24  property outside of the State of Illinois.
25  (39) Beginning January 1, 2008, tangible personal
26  property used in the construction or maintenance of a

 

 

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1  community water supply, as defined under Section 3.145 of
2  the Environmental Protection Act, that is operated by a
3  not-for-profit corporation that holds a valid water supply
4  permit issued under Title IV of the Environmental
5  Protection Act. This paragraph is exempt from the
6  provisions of Section 2-70.
7  (40) Beginning January 1, 2010 and continuing through
8  December 31, 2029, materials, parts, equipment,
9  components, and furnishings incorporated into or upon an
10  aircraft as part of the modification, refurbishment,
11  completion, replacement, repair, or maintenance of the
12  aircraft. This exemption includes consumable supplies used
13  in the modification, refurbishment, completion,
14  replacement, repair, and maintenance of aircraft. However,
15  until January 1, 2024, this exemption excludes any
16  materials, parts, equipment, components, and consumable
17  supplies used in the modification, replacement, repair,
18  and maintenance of aircraft engines or power plants,
19  whether such engines or power plants are installed or
20  uninstalled upon any such aircraft. "Consumable supplies"
21  include, but are not limited to, adhesive, tape,
22  sandpaper, general purpose lubricants, cleaning solution,
23  latex gloves, and protective films.
24  Beginning January 1, 2010 and continuing through
25  December 31, 2023, this exemption applies only to the sale
26  of qualifying tangible personal property to persons who

 

 

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1  modify, refurbish, complete, replace, or maintain an
2  aircraft and who (i) hold an Air Agency Certificate and
3  are empowered to operate an approved repair station by the
4  Federal Aviation Administration, (ii) have a Class IV
5  Rating, and (iii) conduct operations in accordance with
6  Part 145 of the Federal Aviation Regulations. The
7  exemption does not include aircraft operated by a
8  commercial air carrier providing scheduled passenger air
9  service pursuant to authority issued under Part 121 or
10  Part 129 of the Federal Aviation Regulations. From January
11  1, 2024 through December 31, 2029, this exemption applies
12  only to the use of qualifying tangible personal property
13  by: (A) persons who modify, refurbish, complete, repair,
14  replace, or maintain aircraft and who (i) hold an Air
15  Agency Certificate and are empowered to operate an
16  approved repair station by the Federal Aviation
17  Administration, (ii) have a Class IV Rating, and (iii)
18  conduct operations in accordance with Part 145 of the
19  Federal Aviation Regulations; and (B) persons who engage
20  in the modification, replacement, repair, and maintenance
21  of aircraft engines or power plants without regard to
22  whether or not those persons meet the qualifications of
23  item (A).
24  The changes made to this paragraph (40) by Public Act
25  98-534 are declarative of existing law. It is the intent
26  of the General Assembly that the exemption under this

 

 

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1  paragraph (40) applies continuously from January 1, 2010
2  through December 31, 2024; however, no claim for credit or
3  refund is allowed for taxes paid as a result of the
4  disallowance of this exemption on or after January 1, 2015
5  and prior to February 5, 2020 (the effective date of
6  Public Act 101-629).
7  (41) Tangible personal property sold to 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,
11  but only if the legal title to the municipal convention
12  hall is transferred to the municipality without any
13  further consideration by or on behalf of the municipality
14  at the time of the completion of the municipal convention
15  hall or upon the retirement or redemption of any bonds or
16  other debt instruments issued by the public-facilities
17  corporation in connection with the development of the
18  municipal convention hall. This exemption includes
19  existing public-facilities corporations as provided in
20  Section 11-65-25 of the Illinois Municipal Code. This
21  paragraph is exempt from the provisions of Section 2-70.
22  (42) Beginning January 1, 2017 and through December
23  31, 2026, menstrual pads, tampons, and menstrual cups.
24  (43) Merchandise that is subject to the Rental
25  Purchase Agreement Occupation and Use Tax. The purchaser
26  must certify that the item is purchased to be rented

 

 

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1  subject to a rental-purchase rental purchase agreement, as
2  defined in the Rental-Purchase Rental Purchase Agreement
3  Act, and provide proof of registration under the Rental
4  Purchase Agreement Occupation and Use Tax Act. This
5  paragraph is exempt from the provisions of Section 2-70.
6  (44) Qualified tangible personal property used in the
7  construction or operation of a data center that has been
8  granted a certificate of exemption by the Department of
9  Commerce and Economic Opportunity, whether that tangible
10  personal property is purchased by the owner, operator, or
11  tenant of the data center or by a contractor or
12  subcontractor of the owner, operator, or tenant. Data
13  centers that would have qualified for a certificate of
14  exemption prior to January 1, 2020 had Public Act 101-31
15  been in effect, may apply for and obtain an exemption for
16  subsequent purchases of computer equipment or enabling
17  software purchased or leased to upgrade, supplement, or
18  replace computer equipment or enabling software purchased
19  or leased in the original investment that would have
20  qualified.
21  The Department of Commerce and Economic Opportunity
22  shall grant a certificate of exemption under this item
23  (44) to qualified data centers as defined by Section
24  605-1025 of the Department of Commerce and Economic
25  Opportunity Law of the Civil Administrative Code of
26  Illinois.

 

 

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1  For the purposes of this item (44):
2  "Data center" means a building or a series of
3  buildings rehabilitated or constructed to house
4  working servers in one physical location or multiple
5  sites within the State of Illinois.
6  "Qualified tangible personal property" means:
7  electrical systems and equipment; climate control and
8  chilling equipment and systems; mechanical systems and
9  equipment; monitoring and secure systems; emergency
10  generators; hardware; computers; servers; data storage
11  devices; network connectivity equipment; racks;
12  cabinets; telecommunications cabling infrastructure;
13  raised floor systems; peripheral components or
14  systems; software; mechanical, electrical, or plumbing
15  systems; battery systems; cooling systems and towers;
16  temperature control systems; other cabling; and other
17  data center infrastructure equipment and systems
18  necessary to operate qualified tangible personal
19  property, including fixtures; and component parts of
20  any of the foregoing, including installation,
21  maintenance, repair, refurbishment, and replacement of
22  qualified tangible personal property to generate,
23  transform, transmit, distribute, or manage electricity
24  necessary to operate qualified tangible personal
25  property; and all other tangible personal property
26  that is essential to the operations of a computer data

 

 

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

 

 

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1  (46) Beginning July 1, 2022, breast pumps, breast pump
2  collection and storage supplies, and breast pump kits.
3  This item (46) is exempt from the provisions of Section
4  2-70. As used in this item (46):
5  "Breast pump" means an electrically controlled or
6  manually controlled pump device designed or marketed to be
7  used to express milk from a human breast during lactation,
8  including the pump device and any battery, AC adapter, or
9  other power supply unit that is used to power the pump
10  device and is packaged and sold with the pump device at the
11  time of sale.
12  "Breast pump collection and storage supplies" means
13  items of tangible personal property designed or marketed
14  to be used in conjunction with a breast pump to collect
15  milk expressed from a human breast and to store collected
16  milk until it is ready for consumption.
17  "Breast pump collection and storage supplies"
18  includes, but is not limited to: breast shields and breast
19  shield connectors; breast pump tubes and tubing adapters;
20  breast pump valves and membranes; backflow protectors and
21  backflow protector adaptors; bottles and bottle caps
22  specific to the operation of the breast pump; and breast
23  milk storage bags.
24  "Breast pump collection and storage supplies" does not
25  include: (1) bottles and bottle caps not specific to the
26  operation of the breast pump; (2) breast pump travel bags

 

 

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1  and other similar carrying accessories, including ice
2  packs, labels, and other similar products; (3) breast pump
3  cleaning supplies; (4) nursing bras, bra pads, breast
4  shells, and other similar products; and (5) creams,
5  ointments, and other similar products that relieve
6  breastfeeding-related symptoms or conditions of the
7  breasts or nipples, unless sold as part of a breast pump
8  kit that is pre-packaged by the breast pump manufacturer
9  or distributor.
10  "Breast pump kit" means a kit that: (1) contains no
11  more than a breast pump, breast pump collection and
12  storage supplies, a rechargeable battery for operating the
13  breast pump, a breastmilk cooler, bottle stands, ice
14  packs, and a breast pump carrying case; and (2) is
15  pre-packaged as a breast pump kit by the breast pump
16  manufacturer or distributor.
17  (47) Tangible personal property sold by or on behalf
18  of the State Treasurer pursuant to the Revised Uniform
19  Unclaimed Property Act. This item (47) is exempt from the
20  provisions of Section 2-70.
21  (48) Beginning on January 1, 2024, tangible personal
22  property purchased by an active duty member of the armed
23  forces of the United States who presents valid military
24  identification and purchases the property using a form of
25  payment where the federal government is the payor. The
26  member of the armed forces must complete, at the point of

 

 

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