Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3128 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 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
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3128 Introduced 2/2/2024, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
3	3	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
4	4	35 ILCS 105/3-5
5	5	35 ILCS 110/3-5
6	6	35 ILCS 115/3-5
7	7	35 ILCS 120/2-5
8	8	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.
9	9	LRB103 38386 HLH 68521 b LRB103 38386 HLH 68521 b
10	10	LRB103 38386 HLH 68521 b
11	11	A BILL FOR
12	12	SB3128LRB103 38386 HLH 68521 b SB3128 LRB103 38386 HLH 68521 b
13	13	SB3128 LRB103 38386 HLH 68521 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-5 as follows:
19	19	6 (35 ILCS 105/3-5)
20	20	7 Sec. 3-5. Exemptions. Use of the following tangible
21	21	8 personal property is exempt from the tax imposed by this Act:
22	22	9 (1) Personal property purchased from a corporation,
23	23	10 society, association, foundation, institution, or
24	24	11 organization, other than a limited liability company, that is
25	25	12 organized and operated as a not-for-profit service enterprise
26	26	13 for the benefit of persons 65 years of age or older if the
27	27	14 personal property was not purchased by the enterprise for the
28	28	15 purpose of resale by the enterprise.
29	29	16 (2) Personal property purchased by a not-for-profit
30	30	17 Illinois county fair association for use in conducting,
31	31	18 operating, or promoting the county fair.
32	32	19 (3) Personal property purchased by a not-for-profit arts
33	33	20 or cultural organization that establishes, by proof required
34	34	21 by the Department by rule, that it has received an exemption
35	35	22 under Section 501(c)(3) of the Internal Revenue Code and that
36	36	23 is organized and operated primarily for the presentation or
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40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3128 Introduced 2/2/2024, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
41	41	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
42	42	35 ILCS 105/3-5
43	43	35 ILCS 110/3-5
44	44	35 ILCS 115/3-5
45	45	35 ILCS 120/2-5
46	46	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.
47	47	LRB103 38386 HLH 68521 b LRB103 38386 HLH 68521 b
48	48	LRB103 38386 HLH 68521 b
49	49	A BILL FOR
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55	55	35 ILCS 105/3-5
56	56	35 ILCS 110/3-5
57	57	35 ILCS 115/3-5
58	58	35 ILCS 120/2-5
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77	77	1 support of arts or cultural programming, activities, or
78	78	2 services. These organizations include, but are not limited to,
79	79	3 music and dramatic arts organizations such as symphony
80	80	4 orchestras and theatrical groups, arts and cultural service
81	81	5 organizations, local arts councils, visual arts organizations,
82	82	6 and media arts organizations. On and after July 1, 2001 (the
83	83	7 effective date of Public Act 92-35), however, an entity
84	84	8 otherwise eligible for this exemption shall not make tax-free
85	85	9 purchases unless it has an active identification number issued
86	86	10 by the Department.
87	87	11 (4) Except as otherwise provided in this Act, personal
88	88	12 property purchased by a governmental body, by a corporation,
89	89	13 society, association, foundation, or institution organized and
90	90	14 operated exclusively for charitable, religious, or educational
91	91	15 purposes, or by a not-for-profit corporation, society,
92	92	16 association, foundation, institution, or organization that has
93	93	17 no compensated officers or employees and that is organized and
94	94	18 operated primarily for the recreation of persons 55 years of
95	95	19 age or older. A limited liability company may qualify for the
96	96	20 exemption under this paragraph only if the limited liability
97	97	21 company is organized and operated exclusively for educational
98	98	22 purposes. On and after July 1, 1987, however, no entity
99	99	23 otherwise eligible for this exemption shall make tax-free
100	100	24 purchases unless it has an active exemption identification
101	101	25 number issued by the Department.
102	102	26 (5) Until July 1, 2003, a passenger car that is a
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113	113	1 replacement vehicle to the extent that the purchase price of
114	114	2 the car is subject to the Replacement Vehicle Tax.
115	115	3 (6) Until July 1, 2003 and beginning again on September 1,
116	116	4 2004 through August 30, 2014, graphic arts machinery and
117	117	5 equipment, including repair and replacement parts, both new
118	118	6 and used, and including that manufactured on special order,
119	119	7 certified by the purchaser to be used primarily for graphic
120	120	8 arts production, and including machinery and equipment
121	121	9 purchased for lease. Equipment includes chemicals or chemicals
122	122	10 acting as catalysts but only if the chemicals or chemicals
123	123	11 acting as catalysts effect a direct and immediate change upon
124	124	12 a graphic arts product. Beginning on July 1, 2017, graphic
125	125	13 arts machinery and equipment is included in the manufacturing
126	126	14 and assembling machinery and equipment exemption under
127	127	15 paragraph (18).
128	128	16 (7) Farm chemicals.
129	129	17 (8) Legal tender, currency, medallions, or gold or silver
130	130	18 coinage issued by the State of Illinois, the government of the
131	131	19 United States of America, or the government of any foreign
132	132	20 country, and bullion.
133	133	21 (9) Personal property purchased from a teacher-sponsored
134	134	22 student organization affiliated with an elementary or
135	135	23 secondary school located in Illinois.
136	136	24 (10) A motor vehicle that is used for automobile renting,
137	137	25 as defined in the Automobile Renting Occupation and Use Tax
138	138	26 Act.
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149	149	1 (11) Farm machinery and equipment, both new and used,
150	150	2 including that manufactured on special order, certified by the
151	151	3 purchaser to be used primarily for production agriculture or
152	152	4 State or federal agricultural programs, including individual
153	153	5 replacement parts for the machinery and equipment, including
154	154	6 machinery and equipment purchased for lease, and including
155	155	7 implements of husbandry defined in Section 1-130 of the
156	156	8 Illinois Vehicle Code, farm machinery and agricultural
157	157	9 chemical and fertilizer spreaders, and nurse wagons required
158	158	10 to be registered under Section 3-809 of the Illinois Vehicle
159	159	11 Code, but excluding other motor vehicles required to be
160	160	12 registered under the Illinois Vehicle Code. Horticultural
161	161	13 polyhouses or hoop houses used for propagating, growing, or
162	162	14 overwintering plants shall be considered farm machinery and
163	163	15 equipment under this item (11). Agricultural chemical tender
164	164	16 tanks and dry boxes shall include units sold separately from a
165	165	17 motor vehicle required to be licensed and units sold mounted
166	166	18 on a motor vehicle required to be licensed if the selling price
167	167	19 of the tender is separately stated.
168	168	20 Farm machinery and equipment shall include precision
169	169	21 farming equipment that is installed or purchased to be
170	170	22 installed on farm machinery and equipment, including, but not
171	171	23 limited to, tractors, harvesters, sprayers, planters, seeders,
172	172	24 or spreaders. Precision farming equipment includes, but is not
173	173	25 limited to, soil testing sensors, computers, monitors,
174	174	26 software, global positioning and mapping systems, and other
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185	185	1 such equipment.
186	186	2 Farm machinery and equipment also includes computers,
187	187	3 sensors, software, and related equipment used primarily in the
188	188	4 computer-assisted operation of production agriculture
189	189	5 facilities, equipment, and activities such as, but not limited
190	190	6 to, the collection, monitoring, and correlation of animal and
191	191	7 crop data for the purpose of formulating animal diets and
192	192	8 agricultural chemicals.
193	193	9 Beginning on January 1, 2024, farm machinery and equipment
194	194	10 also includes electrical power generation equipment used
195	195	11 primarily for production agriculture.
196	196	12 This item (11) is exempt from the provisions of Section
197	197	13 3-90.
198	198	14 (12) Until June 30, 2013, fuel and petroleum products sold
199	199	15 to or used by an air common carrier, certified by the carrier
200	200	16 to be used for consumption, shipment, or storage in the
201	201	17 conduct of its business as an air common carrier, for a flight
202	202	18 destined for or returning from a location or locations outside
203	203	19 the United States without regard to previous or subsequent
204	204	20 domestic stopovers.
205	205	21 Beginning July 1, 2013, fuel and petroleum products sold
206	206	22 to or used by an air carrier, certified by the carrier to be
207	207	23 used for consumption, shipment, or storage in the conduct of
208	208	24 its business as an air common carrier, for a flight that (i) is
209	209	25 engaged in foreign trade or is engaged in trade between the
210	210	26 United States and any of its possessions and (ii) transports
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221	221	1 at least one individual or package for hire from the city of
222	222	2 origination to the city of final destination on the same
223	223	3 aircraft, without regard to a change in the flight number of
224	224	4 that aircraft.
225	225	5 (13) Proceeds of mandatory service charges separately
226	226	6 stated on customers' bills for the purchase and consumption of
227	227	7 food and beverages purchased at retail from a retailer, to the
228	228	8 extent that the proceeds of the service charge are in fact
229	229	9 turned over as tips or as a substitute for tips to the
230	230	10 employees who participate directly in preparing, serving,
231	231	11 hosting or cleaning up the food or beverage function with
232	232	12 respect to which the service charge is imposed.
233	233	13 (14) Until July 1, 2003, oil field exploration, drilling,
234	234	14 and production equipment, including (i) rigs and parts of
235	235	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
236	236	16 pipe and tubular goods, including casing and drill strings,
237	237	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
238	238	18 lines, (v) any individual replacement part for oil field
239	239	19 exploration, drilling, and production equipment, and (vi)
240	240	20 machinery and equipment purchased for lease; but excluding
241	241	21 motor vehicles required to be registered under the Illinois
242	242	22 Vehicle Code.
243	243	23 (15) Photoprocessing machinery and equipment, including
244	244	24 repair and replacement parts, both new and used, including
245	245	25 that manufactured on special order, certified by the purchaser
246	246	26 to be used primarily for photoprocessing, and including
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257	257	1 photoprocessing machinery and equipment purchased for lease.
258	258	2 (16) Until July 1, 2028, coal and aggregate exploration,
259	259	3 mining, off-highway hauling, processing, maintenance, and
260	260	4 reclamation equipment, including replacement parts and
261	261	5 equipment, and including equipment purchased for lease, but
262	262	6 excluding motor vehicles required to be registered under the
263	263	7 Illinois Vehicle Code. The changes made to this Section by
264	264	8 Public Act 97-767 apply on and after July 1, 2003, but no claim
265	265	9 for credit or refund is allowed on or after August 16, 2013
266	266	10 (the effective date of Public Act 98-456) for such taxes paid
267	267	11 during the period beginning July 1, 2003 and ending on August
268	268	12 16, 2013 (the effective date of Public Act 98-456).
269	269	13 (17) Until July 1, 2003, distillation machinery and
270	270	14 equipment, sold as a unit or kit, assembled or installed by the
271	271	15 retailer, certified by the user to be used only for the
272	272	16 production of ethyl alcohol that will be used for consumption
273	273	17 as motor fuel or as a component of motor fuel for the personal
274	274	18 use of the user, and not subject to sale or resale.
275	275	19 (18) Manufacturing and assembling machinery and equipment
276	276	20 used primarily in the process of manufacturing or assembling
277	277	21 tangible personal property for wholesale or retail sale or
278	278	22 lease, whether that sale or lease is made directly by the
279	279	23 manufacturer or by some other person, whether the materials
280	280	24 used in the process are owned by the manufacturer or some other
281	281	25 person, or whether that sale or lease is made apart from or as
282	282	26 an incident to the seller's engaging in the service occupation
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293	293	1 of producing machines, tools, dies, jigs, patterns, gauges, or
294	294	2 other similar items of no commercial value on special order
295	295	3 for a particular purchaser. The exemption provided by this
296	296	4 paragraph (18) includes production related tangible personal
297	297	5 property, as defined in Section 3-50, purchased on or after
298	298	6 July 1, 2019. The exemption provided by this paragraph (18)
299	299	7 does not include machinery and equipment used in (i) the
300	300	8 generation of electricity for wholesale or retail sale; (ii)
301	301	9 the generation or treatment of natural or artificial gas for
302	302	10 wholesale or retail sale that is delivered to customers
303	303	11 through pipes, pipelines, or mains; or (iii) the treatment of
304	304	12 water for wholesale or retail sale that is delivered to
305	305	13 customers through pipes, pipelines, or mains. The provisions
306	306	14 of Public Act 98-583 are declaratory of existing law as to the
307	307	15 meaning and scope of this exemption. Beginning on July 1,
308	308	16 2017, the exemption provided by this paragraph (18) includes,
309	309	17 but is not limited to, graphic arts machinery and equipment,
310	310	18 as defined in paragraph (6) of this Section.
311	311	19 (19) Personal property delivered to a purchaser or
312	312	20 purchaser's donee inside Illinois when the purchase order for
313	313	21 that personal property was received by a florist located
314	314	22 outside Illinois who has a florist located inside Illinois
315	315	23 deliver the personal property.
316	316	24 (20) Semen used for artificial insemination of livestock
317	317	25 for direct agricultural production.
318	318	26 (21) Horses, or interests in horses, registered with and
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329	329	1 meeting the requirements of any of the Arabian Horse Club
330	330	2 Registry of America, Appaloosa Horse Club, American Quarter
331	331	3 Horse Association, United States Trotting Association, or
332	332	4 Jockey Club, as appropriate, used for purposes of breeding or
333	333	5 racing for prizes. This item (21) is exempt from the
334	334	6 provisions of Section 3-90, and the exemption provided for
335	335	7 under this item (21) applies for all periods beginning May 30,
336	336	8 1995, but no claim for credit or refund is allowed on or after
337	337	9 January 1, 2008 for such taxes paid during the period
338	338	10 beginning May 30, 2000 and ending on January 1, 2008.
339	339	11 (22) Computers and communications equipment utilized for
340	340	12 any hospital purpose and equipment used in the diagnosis,
341	341	13 analysis, or treatment of hospital patients purchased by a
342	342	14 lessor who leases the equipment, under a lease of one year or
343	343	15 longer executed or in effect at the time the lessor would
344	344	16 otherwise be subject to the tax imposed by this Act, to a
345	345	17 hospital that has been issued an active tax exemption
346	346	18 identification number by the Department under Section 1g of
347	347	19 the Retailers' Occupation Tax Act. If the equipment is leased
348	348	20 in a manner that does not qualify for this exemption or is used
349	349	21 in any other non-exempt manner, the lessor shall be liable for
350	350	22 the tax imposed under this Act or the Service Use Tax Act, as
351	351	23 the case may be, based on the fair market value of the property
352	352	24 at the time the non-qualifying use occurs. No lessor shall
353	353	25 collect or attempt to collect an amount (however designated)
354	354	26 that purports to reimburse that lessor for the tax imposed by
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365	365	1 this Act or the Service Use Tax Act, as the case may be, if the
366	366	2 tax has not been paid by the lessor. If a lessor improperly
367	367	3 collects any such amount from the lessee, the lessee shall
368	368	4 have a legal right to claim a refund of that amount from the
369	369	5 lessor. If, however, that amount is not refunded to the lessee
370	370	6 for any reason, the lessor is liable to pay that amount to the
371	371	7 Department.
372	372	8 (23) Personal property purchased by a lessor who leases
373	373	9 the property, under a lease of one year or longer executed or
374	374	10 in effect at the time the lessor would otherwise be subject to
375	375	11 the tax imposed by this Act, to a governmental body that has
376	376	12 been issued an active sales tax exemption identification
377	377	13 number by the Department under Section 1g of the Retailers'
378	378	14 Occupation Tax Act. If the property is leased in a manner that
379	379	15 does not qualify for this exemption or used in any other
380	380	16 non-exempt manner, the lessor shall be liable for the tax
381	381	17 imposed under this Act or the Service Use Tax Act, as the case
382	382	18 may be, based on the fair market value of the property at the
383	383	19 time the non-qualifying use occurs. No lessor shall collect or
384	384	20 attempt to collect an amount (however designated) that
385	385	21 purports to reimburse that lessor for the tax imposed by this
386	386	22 Act or the Service Use Tax Act, as the case may be, if the tax
387	387	23 has not been paid by the lessor. If a lessor improperly
388	388	24 collects any such amount from the lessee, the lessee shall
389	389	25 have a legal right to claim a refund of that amount from the
390	390	26 lessor. If, however, that amount is not refunded to the lessee
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401	401	1 for any reason, the lessor is liable to pay that amount to the
402	402	2 Department.
403	403	3 (24) Beginning with taxable years ending on or after
404	404	4 December 31, 1995 and ending with taxable years ending on or
405	405	5 before December 31, 2004, personal property that is donated
406	406	6 for disaster relief to be used in a State or federally declared
407	407	7 disaster area in Illinois or bordering Illinois by a
408	408	8 manufacturer or retailer that is registered in this State to a
409	409	9 corporation, society, association, foundation, or institution
410	410	10 that has been issued a sales tax exemption identification
411	411	11 number by the Department that assists victims of the disaster
412	412	12 who reside within the declared disaster area.
413	413	13 (25) Beginning with taxable years ending on or after
414	414	14 December 31, 1995 and ending with taxable years ending on or
415	415	15 before December 31, 2004, personal property that is used in
416	416	16 the performance of infrastructure repairs in this State,
417	417	17 including, but not limited to, municipal roads and streets,
418	418	18 access roads, bridges, sidewalks, waste disposal systems,
419	419	19 water and sewer line extensions, water distribution and
420	420	20 purification facilities, storm water drainage and retention
421	421	21 facilities, and sewage treatment facilities, resulting from a
422	422	22 State or federally declared disaster in Illinois or bordering
423	423	23 Illinois when such repairs are initiated on facilities located
424	424	24 in the declared disaster area within 6 months after the
425	425	25 disaster.
426	426	26 (26) Beginning July 1, 1999, game or game birds purchased
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437	437	1 at a "game breeding and hunting preserve area" as that term is
438	438	2 used in the Wildlife Code. This paragraph is exempt from the
439	439	3 provisions of Section 3-90.
440	440	4 (27) A motor vehicle, as that term is defined in Section
441	441	5 1-146 of the Illinois Vehicle Code, that is donated to a
442	442	6 corporation, limited liability company, society, association,
443	443	7 foundation, or institution that is determined by the
444	444	8 Department to be organized and operated exclusively for
445	445	9 educational purposes. For purposes of this exemption, "a
446	446	10 corporation, limited liability company, society, association,
447	447	11 foundation, or institution organized and operated exclusively
448	448	12 for educational purposes" means all tax-supported public
449	449	13 schools, private schools that offer systematic instruction in
450	450	14 useful branches of learning by methods common to public
451	451	15 schools and that compare favorably in their scope and
452	452	16 intensity with the course of study presented in tax-supported
453	453	17 schools, and vocational or technical schools or institutes
454	454	18 organized and operated exclusively to provide a course of
455	455	19 study of not less than 6 weeks duration and designed to prepare
456	456	20 individuals to follow a trade or to pursue a manual,
457	457	21 technical, mechanical, industrial, business, or commercial
458	458	22 occupation.
459	459	23 (28) Beginning January 1, 2000, personal property,
460	460	24 including food, purchased through fundraising events for the
461	461	25 benefit of a public or private elementary or secondary school,
462	462	26 a group of those schools, or one or more school districts if
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473	473	1 the events are sponsored by an entity recognized by the school
474	474	2 district that consists primarily of volunteers and includes
475	475	3 parents and teachers of the school children. This paragraph
476	476	4 does not apply to fundraising events (i) for the benefit of
477	477	5 private home instruction or (ii) for which the fundraising
478	478	6 entity purchases the personal property sold at the events from
479	479	7 another individual or entity that sold the property for the
480	480	8 purpose of resale by the fundraising entity and that profits
481	481	9 from the sale to the fundraising entity. This paragraph is
482	482	10 exempt from the provisions of Section 3-90.
483	483	11 (29) Beginning January 1, 2000 and through December 31,
484	484	12 2001, new or used automatic vending machines that prepare and
485	485	13 serve hot food and beverages, including coffee, soup, and
486	486	14 other items, and replacement parts for these machines.
487	487	15 Beginning January 1, 2002 and through June 30, 2003, machines
488	488	16 and parts for machines used in commercial, coin-operated
489	489	17 amusement and vending business if a use or occupation tax is
490	490	18 paid on the gross receipts derived from the use of the
491	491	19 commercial, coin-operated amusement and vending machines. This
492	492	20 paragraph is exempt from the provisions of Section 3-90.
493	493	21 (30) Beginning January 1, 2001 and through June 30, 2016,
494	494	22 food for human consumption that is to be consumed off the
495	495	23 premises where it is sold (other than alcoholic beverages,
496	496	24 soft drinks, and food that has been prepared for immediate
497	497	25 consumption) and prescription and nonprescription medicines,
498	498	26 drugs, medical appliances, and insulin, urine testing
499	499
500	500
501	501
502	502
503	503
504	504	SB3128 - 13 - LRB103 38386 HLH 68521 b
505	505
506	506
507	507	SB3128- 14 -LRB103 38386 HLH 68521 b SB3128 - 14 - LRB103 38386 HLH 68521 b
508	508	SB3128 - 14 - LRB103 38386 HLH 68521 b
509	509	1 materials, syringes, and needles used by diabetics, for human
510	510	2 use, when purchased for use by a person receiving medical
511	511	3 assistance under Article V of the Illinois Public Aid Code who
512	512	4 resides in a licensed long-term care facility, as defined in
513	513	5 the Nursing Home Care Act, or in a licensed facility as defined
514	514	6 in the ID/DD Community Care Act, the MC/DD Act, or the
515	515	7 Specialized Mental Health Rehabilitation Act of 2013.
516	516	8 (31) Beginning on August 2, 2001 (the effective date of
517	517	9 Public Act 92-227), computers and communications equipment
518	518	10 utilized for any hospital purpose and equipment used in the
519	519	11 diagnosis, analysis, or treatment of hospital patients
520	520	12 purchased by a lessor who leases the equipment, under a lease
521	521	13 of one year or longer executed or in effect at the time the
522	522	14 lessor would otherwise be subject to the tax imposed by this
523	523	15 Act, to a hospital that has been issued an active tax exemption
524	524	16 identification number by the Department under Section 1g of
525	525	17 the Retailers' Occupation Tax Act. If the equipment is leased
526	526	18 in a manner that does not qualify for this exemption or is used
527	527	19 in any other nonexempt manner, the lessor shall be liable for
528	528	20 the tax imposed under this Act or the Service Use Tax Act, as
529	529	21 the case may be, based on the fair market value of the property
530	530	22 at the time the nonqualifying use occurs. No lessor shall
531	531	23 collect or attempt to collect an amount (however designated)
532	532	24 that purports to reimburse that lessor for the tax imposed by
533	533	25 this Act or the Service Use Tax Act, as the case may be, if the
534	534	26 tax has not been paid by the lessor. If a lessor improperly
535	535
536	536
537	537
538	538
539	539
540	540	SB3128 - 14 - LRB103 38386 HLH 68521 b
541	541
542	542
543	543	SB3128- 15 -LRB103 38386 HLH 68521 b SB3128 - 15 - LRB103 38386 HLH 68521 b
544	544	SB3128 - 15 - LRB103 38386 HLH 68521 b
545	545	1 collects any such amount from the lessee, the lessee shall
546	546	2 have a legal right to claim a refund of that amount from the
547	547	3 lessor. If, however, that amount is not refunded to the lessee
548	548	4 for any reason, the lessor is liable to pay that amount to the
549	549	5 Department. This paragraph is exempt from the provisions of
550	550	6 Section 3-90.
551	551	7 (32) Beginning on August 2, 2001 (the effective date of
552	552	8 Public Act 92-227), personal property purchased by a lessor
553	553	9 who leases the property, under a lease of one year or longer
554	554	10 executed or in effect at the time the lessor would otherwise be
555	555	11 subject to the tax imposed by this Act, to a governmental body
556	556	12 that has been issued an active sales tax exemption
557	557	13 identification number by the Department under Section 1g of
558	558	14 the Retailers' Occupation Tax Act. If the property is leased
559	559	15 in a manner that does not qualify for this exemption or used in
560	560	16 any other nonexempt manner, the lessor shall be liable for the
561	561	17 tax imposed under this Act or the Service Use Tax Act, as the
562	562	18 case may be, based on the fair market value of the property at
563	563	19 the time the nonqualifying use occurs. No lessor shall collect
564	564	20 or attempt to collect an amount (however designated) that
565	565	21 purports to reimburse that lessor for the tax imposed by this
566	566	22 Act or the Service Use Tax Act, as the case may be, if the tax
567	567	23 has not been paid by the lessor. If a lessor improperly
568	568	24 collects any such amount from the lessee, the lessee shall
569	569	25 have a legal right to claim a refund of that amount from the
570	570	26 lessor. If, however, that amount is not refunded to the lessee
571	571
572	572
573	573
574	574
575	575
576	576	SB3128 - 15 - LRB103 38386 HLH 68521 b
577	577
578	578
579	579	SB3128- 16 -LRB103 38386 HLH 68521 b SB3128 - 16 - LRB103 38386 HLH 68521 b
580	580	SB3128 - 16 - LRB103 38386 HLH 68521 b
581	581	1 for any reason, the lessor is liable to pay that amount to the
582	582	2 Department. This paragraph is exempt from the provisions of
583	583	3 Section 3-90.
584	584	4 (33) On and after July 1, 2003 and through June 30, 2004,
585	585	5 the use in this State of motor vehicles of the second division
586	586	6 with a gross vehicle weight in excess of 8,000 pounds and that
587	587	7 are subject to the commercial distribution fee imposed under
588	588	8 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
589	589	9 July 1, 2004 and through June 30, 2005, the use in this State
590	590	10 of motor vehicles of the second division: (i) with a gross
591	591	11 vehicle weight rating in excess of 8,000 pounds; (ii) that are
592	592	12 subject to the commercial distribution fee imposed under
593	593	13 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
594	594	14 are primarily used for commercial purposes. Through June 30,
595	595	15 2005, this exemption applies to repair and replacement parts
596	596	16 added after the initial purchase of such a motor vehicle if
597	597	17 that motor vehicle is used in a manner that would qualify for
598	598	18 the rolling stock exemption otherwise provided for in this
599	599	19 Act. For purposes of this paragraph, the term "used for
600	600	20 commercial purposes" means the transportation of persons or
601	601	21 property in furtherance of any commercial or industrial
602	602	22 enterprise, whether for-hire or not.
603	603	23 (34) Beginning January 1, 2008, tangible personal property
604	604	24 used in the construction or maintenance of a community water
605	605	25 supply, as defined under Section 3.145 of the Environmental
606	606	26 Protection Act, that is operated by a not-for-profit
607	607
608	608
609	609
610	610
611	611
612	612	SB3128 - 16 - LRB103 38386 HLH 68521 b
613	613
614	614
615	615	SB3128- 17 -LRB103 38386 HLH 68521 b SB3128 - 17 - LRB103 38386 HLH 68521 b
616	616	SB3128 - 17 - LRB103 38386 HLH 68521 b
617	617	1 corporation that holds a valid water supply permit issued
618	618	2 under Title IV of the Environmental Protection Act. This
619	619	3 paragraph is exempt from the provisions of Section 3-90.
620	620	4 (35) Beginning January 1, 2010 and continuing through
621	621	5 December 31, 2029, materials, parts, equipment, components,
622	622	6 and furnishings incorporated into or upon an aircraft as part
623	623	7 of the modification, refurbishment, completion, replacement,
624	624	8 repair, or maintenance of the aircraft. This exemption
625	625	9 includes consumable supplies used in the modification,
626	626	10 refurbishment, completion, replacement, repair, and
627	627	11 maintenance of aircraft. However, until January 1, 2024, this
628	628	12 exemption excludes any materials, parts, equipment,
629	629	13 components, and consumable supplies used in the modification,
630	630	14 replacement, repair, and maintenance of aircraft engines or
631	631	15 power plants, whether such engines or power plants are
632	632	16 installed or uninstalled upon any such aircraft. "Consumable
633	633	17 supplies" include, but are not limited to, adhesive, tape,
634	634	18 sandpaper, general purpose lubricants, cleaning solution,
635	635	19 latex gloves, and protective films.
636	636	20 Beginning January 1, 2010 and continuing through December
637	637	21 31, 2023, this exemption applies only to the use of qualifying
638	638	22 tangible personal property by persons who modify, refurbish,
639	639	23 complete, repair, replace, or maintain aircraft and who (i)
640	640	24 hold an Air Agency Certificate and are empowered to operate an
641	641	25 approved repair station by the Federal Aviation
642	642	26 Administration, (ii) have a Class IV Rating, and (iii) conduct
643	643
644	644
645	645
646	646
647	647
648	648	SB3128 - 17 - LRB103 38386 HLH 68521 b
649	649
650	650
651	651	SB3128- 18 -LRB103 38386 HLH 68521 b SB3128 - 18 - LRB103 38386 HLH 68521 b
652	652	SB3128 - 18 - LRB103 38386 HLH 68521 b
653	653	1 operations in accordance with Part 145 of the Federal Aviation
654	654	2 Regulations. From January 1, 2024 through December 31, 2029,
655	655	3 this exemption applies only to the use of qualifying tangible
656	656	4 personal property by: (A) persons who modify, refurbish,
657	657	5 complete, repair, replace, or maintain aircraft and who (i)
658	658	6 hold an Air Agency Certificate and are empowered to operate an
659	659	7 approved repair station by the Federal Aviation
660	660	8 Administration, (ii) have a Class IV Rating, and (iii) conduct
661	661	9 operations in accordance with Part 145 of the Federal Aviation
662	662	10 Regulations; and (B) persons who engage in the modification,
663	663	11 replacement, repair, and maintenance of aircraft engines or
664	664	12 power plants without regard to whether or not those persons
665	665	13 meet the qualifications of item (A).
666	666	14 The exemption does not include aircraft operated by a
667	667	15 commercial air carrier providing scheduled passenger air
668	668	16 service pursuant to authority issued under Part 121 or Part
669	669	17 129 of the Federal Aviation Regulations. The changes made to
670	670	18 this paragraph (35) by Public Act 98-534 are declarative of
671	671	19 existing law. It is the intent of the General Assembly that the
672	672	20 exemption under this paragraph (35) applies continuously from
673	673	21 January 1, 2010 through December 31, 2024; however, no claim
674	674	22 for credit or refund is allowed for taxes paid as a result of
675	675	23 the disallowance of this exemption on or after January 1, 2015
676	676	24 and prior to February 5, 2020 (the effective date of Public Act
677	677	25 101-629).
678	678	26 (36) Tangible personal property purchased by a
679	679
680	680
681	681
682	682
683	683
684	684	SB3128 - 18 - LRB103 38386 HLH 68521 b
685	685
686	686
687	687	SB3128- 19 -LRB103 38386 HLH 68521 b SB3128 - 19 - LRB103 38386 HLH 68521 b
688	688	SB3128 - 19 - LRB103 38386 HLH 68521 b
689	689	1 public-facilities corporation, as described in Section
690	690	2 11-65-10 of the Illinois Municipal Code, for purposes of
691	691	3 constructing or furnishing a municipal convention hall, but
692	692	4 only if the legal title to the municipal convention hall is
693	693	5 transferred to the municipality without any further
694	694	6 consideration by or on behalf of the municipality at the time
695	695	7 of the completion of the municipal convention hall or upon the
696	696	8 retirement or redemption of any bonds or other debt
697	697	9 instruments issued by the public-facilities corporation in
698	698	10 connection with the development of the municipal convention
699	699	11 hall. This exemption includes existing public-facilities
700	700	12 corporations as provided in Section 11-65-25 of the Illinois
701	701	13 Municipal Code. This paragraph is exempt from the provisions
702	702	14 of Section 3-90.
703	703	15 (37) Beginning January 1, 2017 and through December 31,
704	704	16 2026, menstrual pads, tampons, and menstrual cups.
705	705	17 (38) Merchandise that is subject to the Rental Purchase
706	706	18 Agreement Occupation and Use Tax. The purchaser must certify
707	707	19 that the item is purchased to be rented subject to a
708	708	20 rental-purchase rental purchase agreement, as defined in the
709	709	21 Rental-Purchase Rental Purchase Agreement Act, and provide
710	710	22 proof of registration under the Rental Purchase Agreement
711	711	23 Occupation and Use Tax Act. This paragraph is exempt from the
712	712	24 provisions of Section 3-90.
713	713	25 (39) Tangible personal property purchased by a purchaser
714	714	26 who is exempt from the tax imposed by this Act by operation of
715	715
716	716
717	717
718	718
719	719
720	720	SB3128 - 19 - LRB103 38386 HLH 68521 b
721	721
722	722
723	723	SB3128- 20 -LRB103 38386 HLH 68521 b SB3128 - 20 - LRB103 38386 HLH 68521 b
724	724	SB3128 - 20 - LRB103 38386 HLH 68521 b
725	725	1 federal law. This paragraph is exempt from the provisions of
726	726	2 Section 3-90.
727	727	3 (40) Qualified tangible personal property used in the
728	728	4 construction or operation of a data center that has been
729	729	5 granted a certificate of exemption by the Department of
730	730	6 Commerce and Economic Opportunity, whether that tangible
731	731	7 personal property is purchased by the owner, operator, or
732	732	8 tenant of the data center or by a contractor or subcontractor
733	733	9 of the owner, operator, or tenant. Data centers that would
734	734	10 have qualified for a certificate of exemption prior to January
735	735	11 1, 2020 had Public Act 101-31 been in effect may apply for and
736	736	12 obtain an exemption for subsequent purchases of computer
737	737	13 equipment or enabling software purchased or leased to upgrade,
738	738	14 supplement, or replace computer equipment or enabling software
739	739	15 purchased or leased in the original investment that would have
740	740	16 qualified.
741	741	17 The Department of Commerce and Economic Opportunity shall
742	742	18 grant a certificate of exemption under this item (40) to
743	743	19 qualified data centers as defined by Section 605-1025 of the
744	744	20 Department of Commerce and Economic Opportunity Law of the
745	745	21 Civil Administrative Code of Illinois.
746	746	22 For the purposes of this item (40):
747	747	23 "Data center" means a building or a series of
748	748	24 buildings rehabilitated or constructed to house working
749	749	25 servers in one physical location or multiple sites within
750	750	26 the State of Illinois.
751	751
752	752
753	753
754	754
755	755
756	756	SB3128 - 20 - LRB103 38386 HLH 68521 b
757	757
758	758
759	759	SB3128- 21 -LRB103 38386 HLH 68521 b SB3128 - 21 - LRB103 38386 HLH 68521 b
760	760	SB3128 - 21 - LRB103 38386 HLH 68521 b
761	761	1 "Qualified tangible personal property" means:
762	762	2 electrical systems and equipment; climate control and
763	763	3 chilling equipment and systems; mechanical systems and
764	764	4 equipment; monitoring and secure systems; emergency
765	765	5 generators; hardware; computers; servers; data storage
766	766	6 devices; network connectivity equipment; racks; cabinets;
767	767	7 telecommunications cabling infrastructure; raised floor
768	768	8 systems; peripheral components or systems; software;
769	769	9 mechanical, electrical, or plumbing systems; battery
770	770	10 systems; cooling systems and towers; temperature control
771	771	11 systems; other cabling; and other data center
772	772	12 infrastructure equipment and systems necessary to operate
773	773	13 qualified tangible personal property, including fixtures;
774	774	14 and component parts of any of the foregoing, including
775	775	15 installation, maintenance, repair, refurbishment, and
776	776	16 replacement of qualified tangible personal property to
777	777	17 generate, transform, transmit, distribute, or manage
778	778	18 electricity necessary to operate qualified tangible
779	779	19 personal property; and all other tangible personal
780	780	20 property that is essential to the operations of a computer
781	781	21 data center. The term "qualified tangible personal
782	782	22 property" also includes building materials physically
783	783	23 incorporated into in to the qualifying data center. To
784	784	24 document the exemption allowed under this Section, the
785	785	25 retailer must obtain from the purchaser a copy of the
786	786	26 certificate of eligibility issued by the Department of
787	787
788	788
789	789
790	790
791	791
792	792	SB3128 - 21 - LRB103 38386 HLH 68521 b
793	793
794	794
795	795	SB3128- 22 -LRB103 38386 HLH 68521 b SB3128 - 22 - LRB103 38386 HLH 68521 b
796	796	SB3128 - 22 - LRB103 38386 HLH 68521 b
797	797	1 Commerce and Economic Opportunity.
798	798	2 This item (40) is exempt from the provisions of Section
799	799	3 3-90.
800	800	4 (41) Beginning July 1, 2022, breast pumps, breast pump
801	801	5 collection and storage supplies, and breast pump kits. This
802	802	6 item (41) is exempt from the provisions of Section 3-90. As
803	803	7 used in this item (41):
804	804	8 "Breast pump" means an electrically controlled or
805	805	9 manually controlled pump device designed or marketed to be
806	806	10 used to express milk from a human breast during lactation,
807	807	11 including the pump device and any battery, AC adapter, or
808	808	12 other power supply unit that is used to power the pump
809	809	13 device and is packaged and sold with the pump device at the
810	810	14 time of sale.
811	811	15 "Breast pump collection and storage supplies" means
812	812	16 items of tangible personal property designed or marketed
813	813	17 to be used in conjunction with a breast pump to collect
814	814	18 milk expressed from a human breast and to store collected
815	815	19 milk until it is ready for consumption.
816	816	20 "Breast pump collection and storage supplies"
817	817	21 includes, but is not limited to: breast shields and breast
818	818	22 shield connectors; breast pump tubes and tubing adapters;
819	819	23 breast pump valves and membranes; backflow protectors and
820	820	24 backflow protector adaptors; bottles and bottle caps
821	821	25 specific to the operation of the breast pump; and breast
822	822	26 milk storage bags.
823	823
824	824
825	825
826	826
827	827
828	828	SB3128 - 22 - LRB103 38386 HLH 68521 b
829	829
830	830
831	831	SB3128- 23 -LRB103 38386 HLH 68521 b SB3128 - 23 - LRB103 38386 HLH 68521 b
832	832	SB3128 - 23 - LRB103 38386 HLH 68521 b
833	833	1 "Breast pump collection and storage supplies" does not
834	834	2 include: (1) bottles and bottle caps not specific to the
835	835	3 operation of the breast pump; (2) breast pump travel bags
836	836	4 and other similar carrying accessories, including ice
837	837	5 packs, labels, and other similar products; (3) breast pump
838	838	6 cleaning supplies; (4) nursing bras, bra pads, breast
839	839	7 shells, and other similar products; and (5) creams,
840	840	8 ointments, and other similar products that relieve
841	841	9 breastfeeding-related symptoms or conditions of the
842	842	10 breasts or nipples, unless sold as part of a breast pump
843	843	11 kit that is pre-packaged by the breast pump manufacturer
844	844	12 or distributor.
845	845	13 "Breast pump kit" means a kit that: (1) contains no
846	846	14 more than a breast pump, breast pump collection and
847	847	15 storage supplies, a rechargeable battery for operating the
848	848	16 breast pump, a breastmilk cooler, bottle stands, ice
849	849	17 packs, and a breast pump carrying case; and (2) is
850	850	18 pre-packaged as a breast pump kit by the breast pump
851	851	19 manufacturer or distributor.
852	852	20 (42) Tangible personal property sold by or on behalf of
853	853	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
854	854	22 Property Act. This item (42) is exempt from the provisions of
855	855	23 Section 3-90.
856	856	24 (43) Beginning on January 1, 2024, tangible personal
857	857	25 property purchased by an active duty member of the armed
858	858	26 forces of the United States who presents valid military
859	859
860	860
861	861
862	862
863	863
864	864	SB3128 - 23 - LRB103 38386 HLH 68521 b
865	865
866	866
867	867	SB3128- 24 -LRB103 38386 HLH 68521 b SB3128 - 24 - LRB103 38386 HLH 68521 b
868	868	SB3128 - 24 - LRB103 38386 HLH 68521 b
869	869	1 identification and purchases the property using a form of
870	870	2 payment where the federal government is the payor. The member
871	871	3 of the armed forces must complete, at the point of sale, a form
872	872	4 prescribed by the Department of Revenue documenting that the
873	873	5 transaction is eligible for the exemption under this
874	874	6 paragraph. Retailers must keep the form as documentation of
875	875	7 the exemption in their records for a period of not less than 6
876	876	8 years. "Armed forces of the United States" means the United
877	877	9 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
878	878	10 This paragraph is exempt from the provisions of Section 3-90.
879	879	11 (44) Diapers, baby wipes, car seats, infant formula, and
880	880	12 bottles suitable for feeding infants. This item (43) is exempt
881	881	13 from the provisions of Section 3-90.
882	882	14 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
883	883	15 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
884	884	16 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
885	885	17 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
886	886	18 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
887	887	19 revised 12-12-23.)
888	888	20 Section 10. The Service Use Tax Act is amended by changing
889	889	21 Section 3-5 as follows:
890	890	22 (35 ILCS 110/3-5)
891	891	23 Sec. 3-5. Exemptions. Use of the following tangible
892	892	24 personal property is exempt from the tax imposed by this Act:
893	893
894	894
895	895
896	896
897	897
898	898	SB3128 - 24 - LRB103 38386 HLH 68521 b
899	899
900	900
901	901	SB3128- 25 -LRB103 38386 HLH 68521 b SB3128 - 25 - LRB103 38386 HLH 68521 b
902	902	SB3128 - 25 - LRB103 38386 HLH 68521 b
903	903	1 (1) Personal property purchased from a corporation,
904	904	2 society, association, foundation, institution, or
905	905	3 organization, other than a limited liability company, that is
906	906	4 organized and operated as a not-for-profit service enterprise
907	907	5 for the benefit of persons 65 years of age or older if the
908	908	6 personal property was not purchased by the enterprise for the
909	909	7 purpose of resale by the enterprise.
910	910	8 (2) Personal property purchased by a non-profit Illinois
911	911	9 county fair association for use in conducting, operating, or
912	912	10 promoting the county fair.
913	913	11 (3) Personal property purchased by a not-for-profit arts
914	914	12 or cultural organization that establishes, by proof required
915	915	13 by the Department by rule, that it has received an exemption
916	916	14 under Section 501(c)(3) of the Internal Revenue Code and that
917	917	15 is organized and operated primarily for the presentation or
918	918	16 support of arts or cultural programming, activities, or
919	919	17 services. These organizations include, but are not limited to,
920	920	18 music and dramatic arts organizations such as symphony
921	921	19 orchestras and theatrical groups, arts and cultural service
922	922	20 organizations, local arts councils, visual arts organizations,
923	923	21 and media arts organizations. On and after July 1, 2001 (the
924	924	22 effective date of Public Act 92-35), however, an entity
925	925	23 otherwise eligible for this exemption shall not make tax-free
926	926	24 purchases unless it has an active identification number issued
927	927	25 by the Department.
928	928	26 (4) Legal tender, currency, medallions, or gold or silver
929	929
930	930
931	931
932	932
933	933
934	934	SB3128 - 25 - LRB103 38386 HLH 68521 b
935	935
936	936
937	937	SB3128- 26 -LRB103 38386 HLH 68521 b SB3128 - 26 - LRB103 38386 HLH 68521 b
938	938	SB3128 - 26 - LRB103 38386 HLH 68521 b
939	939	1 coinage issued by the State of Illinois, the government of the
940	940	2 United States of America, or the government of any foreign
941	941	3 country, and bullion.
942	942	4 (5) Until July 1, 2003 and beginning again on September 1,
943	943	5 2004 through August 30, 2014, graphic arts machinery and
944	944	6 equipment, including repair and replacement parts, both new
945	945	7 and used, and including that manufactured on special order or
946	946	8 purchased for lease, certified by the purchaser to be used
947	947	9 primarily for graphic arts production. Equipment includes
948	948	10 chemicals or chemicals acting as catalysts but only if the
949	949	11 chemicals or chemicals acting as catalysts effect a direct and
950	950	12 immediate change upon a graphic arts product. Beginning on
951	951	13 July 1, 2017, graphic arts machinery and equipment is included
952	952	14 in the manufacturing and assembling machinery and equipment
953	953	15 exemption under Section 2 of this Act.
954	954	16 (6) Personal property purchased from a teacher-sponsored
955	955	17 student organization affiliated with an elementary or
956	956	18 secondary school located in Illinois.
957	957	19 (7) Farm machinery and equipment, both new and used,
958	958	20 including that manufactured on special order, certified by the
959	959	21 purchaser to be used primarily for production agriculture or
960	960	22 State or federal agricultural programs, including individual
961	961	23 replacement parts for the machinery and equipment, including
962	962	24 machinery and equipment purchased for lease, and including
963	963	25 implements of husbandry defined in Section 1-130 of the
964	964	26 Illinois Vehicle Code, farm machinery and agricultural
965	965
966	966
967	967
968	968
969	969
970	970	SB3128 - 26 - LRB103 38386 HLH 68521 b
971	971
972	972
973	973	SB3128- 27 -LRB103 38386 HLH 68521 b SB3128 - 27 - LRB103 38386 HLH 68521 b
974	974	SB3128 - 27 - LRB103 38386 HLH 68521 b
975	975	1 chemical and fertilizer spreaders, and nurse wagons required
976	976	2 to be registered under Section 3-809 of the Illinois Vehicle
977	977	3 Code, but excluding other motor vehicles required to be
978	978	4 registered under the Illinois Vehicle Code. Horticultural
979	979	5 polyhouses or hoop houses used for propagating, growing, or
980	980	6 overwintering plants shall be considered farm machinery and
981	981	7 equipment under this item (7). Agricultural chemical tender
982	982	8 tanks and dry boxes shall include units sold separately from a
983	983	9 motor vehicle required to be licensed and units sold mounted
984	984	10 on a motor vehicle required to be licensed if the selling price
985	985	11 of the tender is separately stated.
986	986	12 Farm machinery and equipment shall include precision
987	987	13 farming equipment that is installed or purchased to be
988	988	14 installed on farm machinery and equipment, including, but not
989	989	15 limited to, tractors, harvesters, sprayers, planters, seeders,
990	990	16 or spreaders. Precision farming equipment includes, but is not
991	991	17 limited to, soil testing sensors, computers, monitors,
992	992	18 software, global positioning and mapping systems, and other
993	993	19 such equipment.
994	994	20 Farm machinery and equipment also includes computers,
995	995	21 sensors, software, and related equipment used primarily in the
996	996	22 computer-assisted operation of production agriculture
997	997	23 facilities, equipment, and activities such as, but not limited
998	998	24 to, the collection, monitoring, and correlation of animal and
999	999	25 crop data for the purpose of formulating animal diets and
1000	1000	26 agricultural chemicals.
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	SB3128 - 27 - LRB103 38386 HLH 68521 b
1007	1007
1008	1008
1009	1009	SB3128- 28 -LRB103 38386 HLH 68521 b SB3128 - 28 - LRB103 38386 HLH 68521 b
1010	1010	SB3128 - 28 - LRB103 38386 HLH 68521 b
1011	1011	1 Beginning on January 1, 2024, farm machinery and equipment
1012	1012	2 also includes electrical power generation equipment used
1013	1013	3 primarily for production agriculture.
1014	1014	4 This item (7) is exempt from the provisions of Section
1015	1015	5 3-75.
1016	1016	6 (8) Until June 30, 2013, fuel and petroleum products sold
1017	1017	7 to or used by an air common carrier, certified by the carrier
1018	1018	8 to be used for consumption, shipment, or storage in the
1019	1019	9 conduct of its business as an air common carrier, for a flight
1020	1020	10 destined for or returning from a location or locations outside
1021	1021	11 the United States without regard to previous or subsequent
1022	1022	12 domestic stopovers.
1023	1023	13 Beginning July 1, 2013, fuel and petroleum products sold
1024	1024	14 to or used by an air carrier, certified by the carrier to be
1025	1025	15 used for consumption, shipment, or storage in the conduct of
1026	1026	16 its business as an air common carrier, for a flight that (i) is
1027	1027	17 engaged in foreign trade or is engaged in trade between the
1028	1028	18 United States and any of its possessions and (ii) transports
1029	1029	19 at least one individual or package for hire from the city of
1030	1030	20 origination to the city of final destination on the same
1031	1031	21 aircraft, without regard to a change in the flight number of
1032	1032	22 that aircraft.
1033	1033	23 (9) Proceeds of mandatory service charges separately
1034	1034	24 stated on customers' bills for the purchase and consumption of
1035	1035	25 food and beverages acquired as an incident to the purchase of a
1036	1036	26 service from a serviceman, to the extent that the proceeds of
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	SB3128 - 28 - LRB103 38386 HLH 68521 b
1043	1043
1044	1044
1045	1045	SB3128- 29 -LRB103 38386 HLH 68521 b SB3128 - 29 - LRB103 38386 HLH 68521 b
1046	1046	SB3128 - 29 - LRB103 38386 HLH 68521 b
1047	1047	1 the service charge are in fact turned over as tips or as a
1048	1048	2 substitute for tips to the employees who participate directly
1049	1049	3 in preparing, serving, hosting or cleaning up the food or
1050	1050	4 beverage function with respect to which the service charge is
1051	1051	5 imposed.
1052	1052	6 (10) Until July 1, 2003, oil field exploration, drilling,
1053	1053	7 and production equipment, including (i) rigs and parts of
1054	1054	8 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1055	1055	9 pipe and tubular goods, including casing and drill strings,
1056	1056	10 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1057	1057	11 lines, (v) any individual replacement part for oil field
1058	1058	12 exploration, drilling, and production equipment, and (vi)
1059	1059	13 machinery and equipment purchased for lease; but excluding
1060	1060	14 motor vehicles required to be registered under the Illinois
1061	1061	15 Vehicle Code.
1062	1062	16 (11) Proceeds from the sale of photoprocessing machinery
1063	1063	17 and equipment, including repair and replacement parts, both
1064	1064	18 new and used, including that manufactured on special order,
1065	1065	19 certified by the purchaser to be used primarily for
1066	1066	20 photoprocessing, and including photoprocessing machinery and
1067	1067	21 equipment purchased for lease.
1068	1068	22 (12) Until July 1, 2028, coal and aggregate exploration,
1069	1069	23 mining, off-highway hauling, processing, maintenance, and
1070	1070	24 reclamation equipment, including replacement parts and
1071	1071	25 equipment, and including equipment purchased for lease, but
1072	1072	26 excluding motor vehicles required to be registered under the
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078	SB3128 - 29 - LRB103 38386 HLH 68521 b
1079	1079
1080	1080
1081	1081	SB3128- 30 -LRB103 38386 HLH 68521 b SB3128 - 30 - LRB103 38386 HLH 68521 b
1082	1082	SB3128 - 30 - LRB103 38386 HLH 68521 b
1083	1083	1 Illinois Vehicle Code. The changes made to this Section by
1084	1084	2 Public Act 97-767 apply on and after July 1, 2003, but no claim
1085	1085	3 for credit or refund is allowed on or after August 16, 2013
1086	1086	4 (the effective date of Public Act 98-456) for such taxes paid
1087	1087	5 during the period beginning July 1, 2003 and ending on August
1088	1088	6 16, 2013 (the effective date of Public Act 98-456).
1089	1089	7 (13) Semen used for artificial insemination of livestock
1090	1090	8 for direct agricultural production.
1091	1091	9 (14) Horses, or interests in horses, registered with and
1092	1092	10 meeting the requirements of any of the Arabian Horse Club
1093	1093	11 Registry of America, Appaloosa Horse Club, American Quarter
1094	1094	12 Horse Association, United States Trotting Association, or
1095	1095	13 Jockey Club, as appropriate, used for purposes of breeding or
1096	1096	14 racing for prizes. This item (14) is exempt from the
1097	1097	15 provisions of Section 3-75, and the exemption provided for
1098	1098	16 under this item (14) applies for all periods beginning May 30,
1099	1099	17 1995, but no claim for credit or refund is allowed on or after
1100	1100	18 January 1, 2008 (the effective date of Public Act 95-88) for
1101	1101	19 such taxes paid during the period beginning May 30, 2000 and
1102	1102	20 ending on January 1, 2008 (the effective date of Public Act
1103	1103	21 95-88).
1104	1104	22 (15) Computers and communications equipment utilized for
1105	1105	23 any hospital purpose and equipment used in the diagnosis,
1106	1106	24 analysis, or treatment of hospital patients purchased by a
1107	1107	25 lessor who leases the equipment, under a lease of one year or
1108	1108	26 longer executed or in effect at the time the lessor would
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114	SB3128 - 30 - LRB103 38386 HLH 68521 b
1115	1115
1116	1116
1117	1117	SB3128- 31 -LRB103 38386 HLH 68521 b SB3128 - 31 - LRB103 38386 HLH 68521 b
1118	1118	SB3128 - 31 - LRB103 38386 HLH 68521 b
1119	1119	1 otherwise be subject to the tax imposed by this Act, to a
1120	1120	2 hospital that has been issued an active tax exemption
1121	1121	3 identification number by the Department under Section 1g of
1122	1122	4 the Retailers' Occupation Tax Act. If the equipment is leased
1123	1123	5 in a manner that does not qualify for this exemption or is used
1124	1124	6 in any other non-exempt manner, the lessor shall be liable for
1125	1125	7 the tax imposed under this Act or the Use Tax Act, as the case
1126	1126	8 may be, based on the fair market value of the property at the
1127	1127	9 time the non-qualifying use occurs. No lessor shall collect or
1128	1128	10 attempt to collect an amount (however designated) that
1129	1129	11 purports to reimburse that lessor for the tax imposed by this
1130	1130	12 Act or the Use Tax Act, as the case may be, if the tax has not
1131	1131	13 been paid by the lessor. If a lessor improperly collects any
1132	1132	14 such amount from the lessee, the lessee shall have a legal
1133	1133	15 right to claim a refund of that amount from the lessor. If,
1134	1134	16 however, that amount is not refunded to the lessee for any
1135	1135	17 reason, the lessor is liable to pay that amount to the
1136	1136	18 Department.
1137	1137	19 (16) Personal property purchased by a lessor who leases
1138	1138	20 the property, under a lease of one year or longer executed or
1139	1139	21 in effect at the time the lessor would otherwise be subject to
1140	1140	22 the tax imposed by this Act, to a governmental body that has
1141	1141	23 been issued an active tax exemption identification number by
1142	1142	24 the Department under Section 1g of the Retailers' Occupation
1143	1143	25 Tax Act. If the property is leased in a manner that does not
1144	1144	26 qualify for this exemption or is used in any other non-exempt
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150	SB3128 - 31 - LRB103 38386 HLH 68521 b
1151	1151
1152	1152
1153	1153	SB3128- 32 -LRB103 38386 HLH 68521 b SB3128 - 32 - LRB103 38386 HLH 68521 b
1154	1154	SB3128 - 32 - LRB103 38386 HLH 68521 b
1155	1155	1 manner, the lessor shall be liable for the tax imposed under
1156	1156	2 this Act or the Use Tax Act, as the case may be, based on the
1157	1157	3 fair market value of the property at the time the
1158	1158	4 non-qualifying use occurs. No lessor shall collect or attempt
1159	1159	5 to collect an amount (however designated) that purports to
1160	1160	6 reimburse that lessor for the tax imposed by this Act or the
1161	1161	7 Use Tax Act, as the case may be, if the tax has not been paid
1162	1162	8 by the lessor. If a lessor improperly collects any such amount
1163	1163	9 from the lessee, the lessee shall have a legal right to claim a
1164	1164	10 refund of that amount from the lessor. If, however, that
1165	1165	11 amount is not refunded to the lessee for any reason, the lessor
1166	1166	12 is liable to pay that amount to the Department.
1167	1167	13 (17) Beginning with taxable years ending on or after
1168	1168	14 December 31, 1995 and ending with taxable years ending on or
1169	1169	15 before December 31, 2004, personal property that is donated
1170	1170	16 for disaster relief to be used in a State or federally declared
1171	1171	17 disaster area in Illinois or bordering Illinois by a
1172	1172	18 manufacturer or retailer that is registered in this State to a
1173	1173	19 corporation, society, association, foundation, or institution
1174	1174	20 that has been issued a sales tax exemption identification
1175	1175	21 number by the Department that assists victims of the disaster
1176	1176	22 who reside within the declared disaster area.
1177	1177	23 (18) Beginning with taxable years ending on or after
1178	1178	24 December 31, 1995 and ending with taxable years ending on or
1179	1179	25 before December 31, 2004, personal property that is used in
1180	1180	26 the performance of infrastructure repairs in this State,
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186	SB3128 - 32 - LRB103 38386 HLH 68521 b
1187	1187
1188	1188
1189	1189	SB3128- 33 -LRB103 38386 HLH 68521 b SB3128 - 33 - LRB103 38386 HLH 68521 b
1190	1190	SB3128 - 33 - LRB103 38386 HLH 68521 b
1191	1191	1 including, but not limited to, municipal roads and streets,
1192	1192	2 access roads, bridges, sidewalks, waste disposal systems,
1193	1193	3 water and sewer line extensions, water distribution and
1194	1194	4 purification facilities, storm water drainage and retention
1195	1195	5 facilities, and sewage treatment facilities, resulting from a
1196	1196	6 State or federally declared disaster in Illinois or bordering
1197	1197	7 Illinois when such repairs are initiated on facilities located
1198	1198	8 in the declared disaster area within 6 months after the
1199	1199	9 disaster.
1200	1200	10 (19) Beginning July 1, 1999, game or game birds purchased
1201	1201	11 at a "game breeding and hunting preserve area" as that term is
1202	1202	12 used in the Wildlife Code. This paragraph is exempt from the
1203	1203	13 provisions of Section 3-75.
1204	1204	14 (20) A motor vehicle, as that term is defined in Section
1205	1205	15 1-146 of the Illinois Vehicle Code, that is donated to a
1206	1206	16 corporation, limited liability company, society, association,
1207	1207	17 foundation, or institution that is determined by the
1208	1208	18 Department to be organized and operated exclusively for
1209	1209	19 educational purposes. For purposes of this exemption, "a
1210	1210	20 corporation, limited liability company, society, association,
1211	1211	21 foundation, or institution organized and operated exclusively
1212	1212	22 for educational purposes" means all tax-supported public
1213	1213	23 schools, private schools that offer systematic instruction in
1214	1214	24 useful branches of learning by methods common to public
1215	1215	25 schools and that compare favorably in their scope and
1216	1216	26 intensity with the course of study presented in tax-supported
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222	SB3128 - 33 - LRB103 38386 HLH 68521 b
1223	1223
1224	1224
1225	1225	SB3128- 34 -LRB103 38386 HLH 68521 b SB3128 - 34 - LRB103 38386 HLH 68521 b
1226	1226	SB3128 - 34 - LRB103 38386 HLH 68521 b
1227	1227	1 schools, and vocational or technical schools or institutes
1228	1228	2 organized and operated exclusively to provide a course of
1229	1229	3 study of not less than 6 weeks duration and designed to prepare
1230	1230	4 individuals to follow a trade or to pursue a manual,
1231	1231	5 technical, mechanical, industrial, business, or commercial
1232	1232	6 occupation.
1233	1233	7 (21) Beginning January 1, 2000, personal property,
1234	1234	8 including food, purchased through fundraising events for the
1235	1235	9 benefit of a public or private elementary or secondary school,
1236	1236	10 a group of those schools, or one or more school districts if
1237	1237	11 the events are sponsored by an entity recognized by the school
1238	1238	12 district that consists primarily of volunteers and includes
1239	1239	13 parents and teachers of the school children. This paragraph
1240	1240	14 does not apply to fundraising events (i) for the benefit of
1241	1241	15 private home instruction or (ii) for which the fundraising
1242	1242	16 entity purchases the personal property sold at the events from
1243	1243	17 another individual or entity that sold the property for the
1244	1244	18 purpose of resale by the fundraising entity and that profits
1245	1245	19 from the sale to the fundraising entity. This paragraph is
1246	1246	20 exempt from the provisions of Section 3-75.
1247	1247	21 (22) Beginning January 1, 2000 and through December 31,
1248	1248	22 2001, new or used automatic vending machines that prepare and
1249	1249	23 serve hot food and beverages, including coffee, soup, and
1250	1250	24 other items, and replacement parts for these machines.
1251	1251	25 Beginning January 1, 2002 and through June 30, 2003, machines
1252	1252	26 and parts for machines used in commercial, coin-operated
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258	SB3128 - 34 - LRB103 38386 HLH 68521 b
1259	1259
1260	1260
1261	1261	SB3128- 35 -LRB103 38386 HLH 68521 b SB3128 - 35 - LRB103 38386 HLH 68521 b
1262	1262	SB3128 - 35 - LRB103 38386 HLH 68521 b
1263	1263	1 amusement and vending business if a use or occupation tax is
1264	1264	2 paid on the gross receipts derived from the use of the
1265	1265	3 commercial, coin-operated amusement and vending machines. This
1266	1266	4 paragraph is exempt from the provisions of Section 3-75.
1267	1267	5 (23) Beginning August 23, 2001 and through June 30, 2016,
1268	1268	6 food for human consumption that is to be consumed off the
1269	1269	7 premises where it is sold (other than alcoholic beverages,
1270	1270	8 soft drinks, and food that has been prepared for immediate
1271	1271	9 consumption) and prescription and nonprescription medicines,
1272	1272	10 drugs, medical appliances, and insulin, urine testing
1273	1273	11 materials, syringes, and needles used by diabetics, for human
1274	1274	12 use, when purchased for use by a person receiving medical
1275	1275	13 assistance under Article V of the Illinois Public Aid Code who
1276	1276	14 resides in a licensed long-term care facility, as defined in
1277	1277	15 the Nursing Home Care Act, or in a licensed facility as defined
1278	1278	16 in the ID/DD Community Care Act, the MC/DD Act, or the
1279	1279	17 Specialized Mental Health Rehabilitation Act of 2013.
1280	1280	18 (24) Beginning on August 2, 2001 (the effective date of
1281	1281	19 Public Act 92-227), computers and communications equipment
1282	1282	20 utilized for any hospital purpose and equipment used in the
1283	1283	21 diagnosis, analysis, or treatment of hospital patients
1284	1284	22 purchased by a lessor who leases the equipment, under a lease
1285	1285	23 of one year or longer executed or in effect at the time the
1286	1286	24 lessor would otherwise be subject to the tax imposed by this
1287	1287	25 Act, to a hospital that has been issued an active tax exemption
1288	1288	26 identification number by the Department under Section 1g of
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294	SB3128 - 35 - LRB103 38386 HLH 68521 b
1295	1295
1296	1296
1297	1297	SB3128- 36 -LRB103 38386 HLH 68521 b SB3128 - 36 - LRB103 38386 HLH 68521 b
1298	1298	SB3128 - 36 - LRB103 38386 HLH 68521 b
1299	1299	1 the Retailers' Occupation Tax Act. If the equipment is leased
1300	1300	2 in a manner that does not qualify for this exemption or is used
1301	1301	3 in any other nonexempt manner, the lessor shall be liable for
1302	1302	4 the tax imposed under this Act or the Use Tax Act, as the case
1303	1303	5 may be, based on the fair market value of the property at the
1304	1304	6 time the nonqualifying use occurs. No lessor shall collect or
1305	1305	7 attempt to collect an amount (however designated) that
1306	1306	8 purports to reimburse that lessor for the tax imposed by this
1307	1307	9 Act or the Use Tax Act, as the case may be, if the tax has not
1308	1308	10 been paid by the lessor. If a lessor improperly collects any
1309	1309	11 such amount from the lessee, the lessee shall have a legal
1310	1310	12 right to claim a refund of that amount from the lessor. If,
1311	1311	13 however, that amount is not refunded to the lessee for any
1312	1312	14 reason, the lessor is liable to pay that amount to the
1313	1313	15 Department. This paragraph is exempt from the provisions of
1314	1314	16 Section 3-75.
1315	1315	17 (25) Beginning on August 2, 2001 (the effective date of
1316	1316	18 Public Act 92-227), personal property purchased by a lessor
1317	1317	19 who leases the property, under a lease of one year or longer
1318	1318	20 executed or in effect at the time the lessor would otherwise be
1319	1319	21 subject to the tax imposed by this Act, to a governmental body
1320	1320	22 that has been issued an active tax exemption identification
1321	1321	23 number by the Department under Section 1g of the Retailers'
1322	1322	24 Occupation Tax Act. If the property is leased in a manner that
1323	1323	25 does not qualify for this exemption or is used in any other
1324	1324	26 nonexempt manner, the lessor shall be liable for the tax
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330	SB3128 - 36 - LRB103 38386 HLH 68521 b
1331	1331
1332	1332
1333	1333	SB3128- 37 -LRB103 38386 HLH 68521 b SB3128 - 37 - LRB103 38386 HLH 68521 b
1334	1334	SB3128 - 37 - LRB103 38386 HLH 68521 b
1335	1335	1 imposed under this Act or the Use Tax Act, as the case may be,
1336	1336	2 based on the fair market value of the property at the time the
1337	1337	3 nonqualifying use occurs. No lessor shall collect or attempt
1338	1338	4 to collect an amount (however designated) that purports to
1339	1339	5 reimburse that lessor for the tax imposed by this Act or the
1340	1340	6 Use Tax Act, as the case may be, if the tax has not been paid
1341	1341	7 by the lessor. If a lessor improperly collects any such amount
1342	1342	8 from the lessee, the lessee shall have a legal right to claim a
1343	1343	9 refund of that amount from the lessor. If, however, that
1344	1344	10 amount is not refunded to the lessee for any reason, the lessor
1345	1345	11 is liable to pay that amount to the Department. This paragraph
1346	1346	12 is exempt from the provisions of Section 3-75.
1347	1347	13 (26) Beginning January 1, 2008, tangible personal property
1348	1348	14 used in the construction or maintenance of a community water
1349	1349	15 supply, as defined under Section 3.145 of the Environmental
1350	1350	16 Protection Act, that is operated by a not-for-profit
1351	1351	17 corporation that holds a valid water supply permit issued
1352	1352	18 under Title IV of the Environmental Protection Act. This
1353	1353	19 paragraph is exempt from the provisions of Section 3-75.
1354	1354	20 (27) Beginning January 1, 2010 and continuing through
1355	1355	21 December 31, 2029, materials, parts, equipment, components,
1356	1356	22 and furnishings incorporated into or upon an aircraft as part
1357	1357	23 of the modification, refurbishment, completion, replacement,
1358	1358	24 repair, or maintenance of the aircraft. This exemption
1359	1359	25 includes consumable supplies used in the modification,
1360	1360	26 refurbishment, completion, replacement, repair, and
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366	SB3128 - 37 - LRB103 38386 HLH 68521 b
1367	1367
1368	1368
1369	1369	SB3128- 38 -LRB103 38386 HLH 68521 b SB3128 - 38 - LRB103 38386 HLH 68521 b
1370	1370	SB3128 - 38 - LRB103 38386 HLH 68521 b
1371	1371	1 maintenance of aircraft. However, until January 1, 2024, this
1372	1372	2 exemption excludes any materials, parts, equipment,
1373	1373	3 components, and consumable supplies used in the modification,
1374	1374	4 replacement, repair, and maintenance of aircraft engines or
1375	1375	5 power plants, whether such engines or power plants are
1376	1376	6 installed or uninstalled upon any such aircraft. "Consumable
1377	1377	7 supplies" include, but are not limited to, adhesive, tape,
1378	1378	8 sandpaper, general purpose lubricants, cleaning solution,
1379	1379	9 latex gloves, and protective films.
1380	1380	10 Beginning January 1, 2010 and continuing through December
1381	1381	11 31, 2023, this exemption applies only to the use of qualifying
1382	1382	12 tangible personal property transferred incident to the
1383	1383	13 modification, refurbishment, completion, replacement, repair,
1384	1384	14 or maintenance of aircraft by persons who (i) hold an Air
1385	1385	15 Agency Certificate and are empowered to operate an approved
1386	1386	16 repair station by the Federal Aviation Administration, (ii)
1387	1387	17 have a Class IV Rating, and (iii) conduct operations in
1388	1388	18 accordance with Part 145 of the Federal Aviation Regulations.
1389	1389	19 From January 1, 2024 through December 31, 2029, this exemption
1390	1390	20 applies only to the use of qualifying tangible personal
1391	1391	21 property by: (A) persons who modify, refurbish, complete,
1392	1392	22 repair, replace, or maintain aircraft and who (i) hold an Air
1393	1393	23 Agency Certificate and are empowered to operate an approved
1394	1394	24 repair station by the Federal Aviation Administration, (ii)
1395	1395	25 have a Class IV Rating, and (iii) conduct operations in
1396	1396	26 accordance with Part 145 of the Federal Aviation Regulations;
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402	SB3128 - 38 - LRB103 38386 HLH 68521 b
1403	1403
1404	1404
1405	1405	SB3128- 39 -LRB103 38386 HLH 68521 b SB3128 - 39 - LRB103 38386 HLH 68521 b
1406	1406	SB3128 - 39 - LRB103 38386 HLH 68521 b
1407	1407	1 and (B) persons who engage in the modification, replacement,
1408	1408	2 repair, and maintenance of aircraft engines or power plants
1409	1409	3 without regard to whether or not those persons meet the
1410	1410	4 qualifications of item (A).
1411	1411	5 The exemption does not include aircraft operated by a
1412	1412	6 commercial air carrier providing scheduled passenger air
1413	1413	7 service pursuant to authority issued under Part 121 or Part
1414	1414	8 129 of the Federal Aviation Regulations. The changes made to
1415	1415	9 this paragraph (27) by Public Act 98-534 are declarative of
1416	1416	10 existing law. It is the intent of the General Assembly that the
1417	1417	11 exemption under this paragraph (27) applies continuously from
1418	1418	12 January 1, 2010 through December 31, 2024; however, no claim
1419	1419	13 for credit or refund is allowed for taxes paid as a result of
1420	1420	14 the disallowance of this exemption on or after January 1, 2015
1421	1421	15 and prior to February 5, 2020 (the effective date of Public Act
1422	1422	16 101-629).
1423	1423	17 (28) Tangible personal property purchased by a
1424	1424	18 public-facilities corporation, as described in Section
1425	1425	19 11-65-10 of the Illinois Municipal Code, for purposes of
1426	1426	20 constructing or furnishing a municipal convention hall, but
1427	1427	21 only if the legal title to the municipal convention hall is
1428	1428	22 transferred to the municipality without any further
1429	1429	23 consideration by or on behalf of the municipality at the time
1430	1430	24 of the completion of the municipal convention hall or upon the
1431	1431	25 retirement or redemption of any bonds or other debt
1432	1432	26 instruments issued by the public-facilities corporation in
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438	SB3128 - 39 - LRB103 38386 HLH 68521 b
1439	1439
1440	1440
1441	1441	SB3128- 40 -LRB103 38386 HLH 68521 b SB3128 - 40 - LRB103 38386 HLH 68521 b
1442	1442	SB3128 - 40 - LRB103 38386 HLH 68521 b
1443	1443	1 connection with the development of the municipal convention
1444	1444	2 hall. This exemption includes existing public-facilities
1445	1445	3 corporations as provided in Section 11-65-25 of the Illinois
1446	1446	4 Municipal Code. This paragraph is exempt from the provisions
1447	1447	5 of Section 3-75.
1448	1448	6 (29) Beginning January 1, 2017 and through December 31,
1449	1449	7 2026, menstrual pads, tampons, and menstrual cups.
1450	1450	8 (30) Tangible personal property transferred to a purchaser
1451	1451	9 who is exempt from the tax imposed by this Act by operation of
1452	1452	10 federal law. This paragraph is exempt from the provisions of
1453	1453	11 Section 3-75.
1454	1454	12 (31) Qualified tangible personal property used in the
1455	1455	13 construction or operation of a data center that has been
1456	1456	14 granted a certificate of exemption by the Department of
1457	1457	15 Commerce and Economic Opportunity, whether that tangible
1458	1458	16 personal property is purchased by the owner, operator, or
1459	1459	17 tenant of the data center or by a contractor or subcontractor
1460	1460	18 of the owner, operator, or tenant. Data centers that would
1461	1461	19 have qualified for a certificate of exemption prior to January
1462	1462	20 1, 2020 had Public Act 101-31 been in effect, may apply for and
1463	1463	21 obtain an exemption for subsequent purchases of computer
1464	1464	22 equipment or enabling software purchased or leased to upgrade,
1465	1465	23 supplement, or replace computer equipment or enabling software
1466	1466	24 purchased or leased in the original investment that would have
1467	1467	25 qualified.
1468	1468	26 The Department of Commerce and Economic Opportunity shall
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473
1474	1474	SB3128 - 40 - LRB103 38386 HLH 68521 b
1475	1475
1476	1476
1477	1477	SB3128- 41 -LRB103 38386 HLH 68521 b SB3128 - 41 - LRB103 38386 HLH 68521 b
1478	1478	SB3128 - 41 - LRB103 38386 HLH 68521 b
1479	1479	1 grant a certificate of exemption under this item (31) to
1480	1480	2 qualified data centers as defined by Section 605-1025 of the
1481	1481	3 Department of Commerce and Economic Opportunity Law of the
1482	1482	4 Civil Administrative Code of Illinois.
1483	1483	5 For the purposes of this item (31):
1484	1484	6 "Data center" means a building or a series of
1485	1485	7 buildings rehabilitated or constructed to house working
1486	1486	8 servers in one physical location or multiple sites within
1487	1487	9 the State of Illinois.
1488	1488	10 "Qualified tangible personal property" means:
1489	1489	11 electrical systems and equipment; climate control and
1490	1490	12 chilling equipment and systems; mechanical systems and
1491	1491	13 equipment; monitoring and secure systems; emergency
1492	1492	14 generators; hardware; computers; servers; data storage
1493	1493	15 devices; network connectivity equipment; racks; cabinets;
1494	1494	16 telecommunications cabling infrastructure; raised floor
1495	1495	17 systems; peripheral components or systems; software;
1496	1496	18 mechanical, electrical, or plumbing systems; battery
1497	1497	19 systems; cooling systems and towers; temperature control
1498	1498	20 systems; other cabling; and other data center
1499	1499	21 infrastructure equipment and systems necessary to operate
1500	1500	22 qualified tangible personal property, including fixtures;
1501	1501	23 and component parts of any of the foregoing, including
1502	1502	24 installation, maintenance, repair, refurbishment, and
1503	1503	25 replacement of qualified tangible personal property to
1504	1504	26 generate, transform, transmit, distribute, or manage
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510	SB3128 - 41 - LRB103 38386 HLH 68521 b
1511	1511
1512	1512
1513	1513	SB3128- 42 -LRB103 38386 HLH 68521 b SB3128 - 42 - LRB103 38386 HLH 68521 b
1514	1514	SB3128 - 42 - LRB103 38386 HLH 68521 b
1515	1515	1 electricity necessary to operate qualified tangible
1516	1516	2 personal property; and all other tangible personal
1517	1517	3 property that is essential to the operations of a computer
1518	1518	4 data center. The term "qualified tangible personal
1519	1519	5 property" also includes building materials physically
1520	1520	6 incorporated into in to the qualifying data center. To
1521	1521	7 document the exemption allowed under this Section, the
1522	1522	8 retailer must obtain from the purchaser a copy of the
1523	1523	9 certificate of eligibility issued by the Department of
1524	1524	10 Commerce and Economic Opportunity.
1525	1525	11 This item (31) is exempt from the provisions of Section
1526	1526	12 3-75.
1527	1527	13 (32) Beginning July 1, 2022, breast pumps, breast pump
1528	1528	14 collection and storage supplies, and breast pump kits. This
1529	1529	15 item (32) is exempt from the provisions of Section 3-75. As
1530	1530	16 used in this item (32):
1531	1531	17 "Breast pump" means an electrically controlled or
1532	1532	18 manually controlled pump device designed or marketed to be
1533	1533	19 used to express milk from a human breast during lactation,
1534	1534	20 including the pump device and any battery, AC adapter, or
1535	1535	21 other power supply unit that is used to power the pump
1536	1536	22 device and is packaged and sold with the pump device at the
1537	1537	23 time of sale.
1538	1538	24 "Breast pump collection and storage supplies" means
1539	1539	25 items of tangible personal property designed or marketed
1540	1540	26 to be used in conjunction with a breast pump to collect
1541	1541
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546	SB3128 - 42 - LRB103 38386 HLH 68521 b
1547	1547
1548	1548
1549	1549	SB3128- 43 -LRB103 38386 HLH 68521 b SB3128 - 43 - LRB103 38386 HLH 68521 b
1550	1550	SB3128 - 43 - LRB103 38386 HLH 68521 b
1551	1551	1 milk expressed from a human breast and to store collected
1552	1552	2 milk until it is ready for consumption.
1553	1553	3 "Breast pump collection and storage supplies"
1554	1554	4 includes, but is not limited to: breast shields and breast
1555	1555	5 shield connectors; breast pump tubes and tubing adapters;
1556	1556	6 breast pump valves and membranes; backflow protectors and
1557	1557	7 backflow protector adaptors; bottles and bottle caps
1558	1558	8 specific to the operation of the breast pump; and breast
1559	1559	9 milk storage bags.
1560	1560	10 "Breast pump collection and storage supplies" does not
1561	1561	11 include: (1) bottles and bottle caps not specific to the
1562	1562	12 operation of the breast pump; (2) breast pump travel bags
1563	1563	13 and other similar carrying accessories, including ice
1564	1564	14 packs, labels, and other similar products; (3) breast pump
1565	1565	15 cleaning supplies; (4) nursing bras, bra pads, breast
1566	1566	16 shells, and other similar products; and (5) creams,
1567	1567	17 ointments, and other similar products that relieve
1568	1568	18 breastfeeding-related symptoms or conditions of the
1569	1569	19 breasts or nipples, unless sold as part of a breast pump
1570	1570	20 kit that is pre-packaged by the breast pump manufacturer
1571	1571	21 or distributor.
1572	1572	22 "Breast pump kit" means a kit that: (1) contains no
1573	1573	23 more than a breast pump, breast pump collection and
1574	1574	24 storage supplies, a rechargeable battery for operating the
1575	1575	25 breast pump, a breastmilk cooler, bottle stands, ice
1576	1576	26 packs, and a breast pump carrying case; and (2) is
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582	SB3128 - 43 - LRB103 38386 HLH 68521 b
1583	1583
1584	1584
1585	1585	SB3128- 44 -LRB103 38386 HLH 68521 b SB3128 - 44 - LRB103 38386 HLH 68521 b
1586	1586	SB3128 - 44 - LRB103 38386 HLH 68521 b
1587	1587	1 pre-packaged as a breast pump kit by the breast pump
1588	1588	2 manufacturer or distributor.
1589	1589	3 (33) Tangible personal property sold by or on behalf of
1590	1590	4 the State Treasurer pursuant to the Revised Uniform Unclaimed
1591	1591	5 Property Act. This item (33) is exempt from the provisions of
1592	1592	6 Section 3-75.
1593	1593	7 (34) Beginning on January 1, 2024, tangible personal
1594	1594	8 property purchased by an active duty member of the armed
1595	1595	9 forces of the United States who presents valid military
1596	1596	10 identification and purchases the property using a form of
1597	1597	11 payment where the federal government is the payor. The member
1598	1598	12 of the armed forces must complete, at the point of sale, a form
1599	1599	13 prescribed by the Department of Revenue documenting that the
1600	1600	14 transaction is eligible for the exemption under this
1601	1601	15 paragraph. Retailers must keep the form as documentation of
1602	1602	16 the exemption in their records for a period of not less than 6
1603	1603	17 years. "Armed forces of the United States" means the United
1604	1604	18 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1605	1605	19 This paragraph is exempt from the provisions of Section 3-75.
1606	1606	20 (35) Diapers, baby wipes, car seats, infant formula, and
1607	1607	21 bottles suitable for feeding infants. This item (35) is exempt
1608	1608	22 from the provisions of Section 3-75.
1609	1609	23 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1610	1610	24 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1611	1611	25 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1612	1612	26 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1613	1613
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618	SB3128 - 44 - LRB103 38386 HLH 68521 b
1619	1619
1620	1620
1621	1621	SB3128- 45 -LRB103 38386 HLH 68521 b SB3128 - 45 - LRB103 38386 HLH 68521 b
1622	1622	SB3128 - 45 - LRB103 38386 HLH 68521 b
1623	1623	1 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1624	1624	2 revised 12-12-23.)
1625	1625	3 Section 15. The Service Occupation Tax Act is amended by
1626	1626	4 changing Section 3-5 as follows:
1627	1627	5 (35 ILCS 115/3-5)
1628	1628	6 Sec. 3-5. Exemptions. The following tangible personal
1629	1629	7 property is exempt from the tax imposed by this Act:
1630	1630	8 (1) Personal property sold by a corporation, society,
1631	1631	9 association, foundation, institution, or organization, other
1632	1632	10 than a limited liability company, that is organized and
1633	1633	11 operated as a not-for-profit service enterprise for the
1634	1634	12 benefit of persons 65 years of age or older if the personal
1635	1635	13 property was not purchased by the enterprise for the purpose
1636	1636	14 of resale by the enterprise.
1637	1637	15 (2) Personal property purchased by a not-for-profit
1638	1638	16 Illinois county fair association for use in conducting,
1639	1639	17 operating, or promoting the county fair.
1640	1640	18 (3) Personal property purchased by any not-for-profit arts
1641	1641	19 or cultural organization that establishes, by proof required
1642	1642	20 by the Department by rule, that it has received an exemption
1643	1643	21 under Section 501(c)(3) of the Internal Revenue Code and that
1644	1644	22 is organized and operated primarily for the presentation or
1645	1645	23 support of arts or cultural programming, activities, or
1646	1646	24 services. These organizations include, but are not limited to,
1647	1647
1648	1648
1649	1649
1650	1650
1651	1651
1652	1652	SB3128 - 45 - LRB103 38386 HLH 68521 b
1653	1653
1654	1654
1655	1655	SB3128- 46 -LRB103 38386 HLH 68521 b SB3128 - 46 - LRB103 38386 HLH 68521 b
1656	1656	SB3128 - 46 - LRB103 38386 HLH 68521 b
1657	1657	1 music and dramatic arts organizations such as symphony
1658	1658	2 orchestras and theatrical groups, arts and cultural service
1659	1659	3 organizations, local arts councils, visual arts organizations,
1660	1660	4 and media arts organizations. On and after July 1, 2001 (the
1661	1661	5 effective date of Public Act 92-35), however, an entity
1662	1662	6 otherwise eligible for this exemption shall not make tax-free
1663	1663	7 purchases unless it has an active identification number issued
1664	1664	8 by the Department.
1665	1665	9 (4) Legal tender, currency, medallions, or gold or silver
1666	1666	10 coinage issued by the State of Illinois, the government of the
1667	1667	11 United States of America, or the government of any foreign
1668	1668	12 country, and bullion.
1669	1669	13 (5) Until July 1, 2003 and beginning again on September 1,
1670	1670	14 2004 through August 30, 2014, graphic arts machinery and
1671	1671	15 equipment, including repair and replacement parts, both new
1672	1672	16 and used, and including that manufactured on special order or
1673	1673	17 purchased for lease, certified by the purchaser to be used
1674	1674	18 primarily for graphic arts production. Equipment includes
1675	1675	19 chemicals or chemicals acting as catalysts but only if the
1676	1676	20 chemicals or chemicals acting as catalysts effect a direct and
1677	1677	21 immediate change upon a graphic arts product. Beginning on
1678	1678	22 July 1, 2017, graphic arts machinery and equipment is included
1679	1679	23 in the manufacturing and assembling machinery and equipment
1680	1680	24 exemption under Section 2 of this Act.
1681	1681	25 (6) Personal property sold by a teacher-sponsored student
1682	1682	26 organization affiliated with an elementary or secondary school
1683	1683
1684	1684
1685	1685
1686	1686
1687	1687
1688	1688	SB3128 - 46 - LRB103 38386 HLH 68521 b
1689	1689
1690	1690
1691	1691	SB3128- 47 -LRB103 38386 HLH 68521 b SB3128 - 47 - LRB103 38386 HLH 68521 b
1692	1692	SB3128 - 47 - LRB103 38386 HLH 68521 b
1693	1693	1 located in Illinois.
1694	1694	2 (7) Farm machinery and equipment, both new and used,
1695	1695	3 including that manufactured on special order, certified by the
1696	1696	4 purchaser to be used primarily for production agriculture or
1697	1697	5 State or federal agricultural programs, including individual
1698	1698	6 replacement parts for the machinery and equipment, including
1699	1699	7 machinery and equipment purchased for lease, and including
1700	1700	8 implements of husbandry defined in Section 1-130 of the
1701	1701	9 Illinois Vehicle Code, farm machinery and agricultural
1702	1702	10 chemical and fertilizer spreaders, and nurse wagons required
1703	1703	11 to be registered under Section 3-809 of the Illinois Vehicle
1704	1704	12 Code, but excluding other motor vehicles required to be
1705	1705	13 registered under the Illinois Vehicle Code. Horticultural
1706	1706	14 polyhouses or hoop houses used for propagating, growing, or
1707	1707	15 overwintering plants shall be considered farm machinery and
1708	1708	16 equipment under this item (7). Agricultural chemical tender
1709	1709	17 tanks and dry boxes shall include units sold separately from a
1710	1710	18 motor vehicle required to be licensed and units sold mounted
1711	1711	19 on a motor vehicle required to be licensed if the selling price
1712	1712	20 of the tender is separately stated.
1713	1713	21 Farm machinery and equipment shall include precision
1714	1714	22 farming equipment that is installed or purchased to be
1715	1715	23 installed on farm machinery and equipment, including, but not
1716	1716	24 limited to, tractors, harvesters, sprayers, planters, seeders,
1717	1717	25 or spreaders. Precision farming equipment includes, but is not
1718	1718	26 limited to, soil testing sensors, computers, monitors,
1719	1719
1720	1720
1721	1721
1722	1722
1723	1723
1724	1724	SB3128 - 47 - LRB103 38386 HLH 68521 b
1725	1725
1726	1726
1727	1727	SB3128- 48 -LRB103 38386 HLH 68521 b SB3128 - 48 - LRB103 38386 HLH 68521 b
1728	1728	SB3128 - 48 - LRB103 38386 HLH 68521 b
1729	1729	1 software, global positioning and mapping systems, and other
1730	1730	2 such equipment.
1731	1731	3 Farm machinery and equipment also includes computers,
1732	1732	4 sensors, software, and related equipment used primarily in the
1733	1733	5 computer-assisted operation of production agriculture
1734	1734	6 facilities, equipment, and activities such as, but not limited
1735	1735	7 to, the collection, monitoring, and correlation of animal and
1736	1736	8 crop data for the purpose of formulating animal diets and
1737	1737	9 agricultural chemicals.
1738	1738	10 Beginning on January 1, 2024, farm machinery and equipment
1739	1739	11 also includes electrical power generation equipment used
1740	1740	12 primarily for production agriculture.
1741	1741	13 This item (7) is exempt from the provisions of Section
1742	1742	14 3-55.
1743	1743	15 (8) Until June 30, 2013, fuel and petroleum products sold
1744	1744	16 to or used by an air common carrier, certified by the carrier
1745	1745	17 to be used for consumption, shipment, or storage in the
1746	1746	18 conduct of its business as an air common carrier, for a flight
1747	1747	19 destined for or returning from a location or locations outside
1748	1748	20 the United States without regard to previous or subsequent
1749	1749	21 domestic stopovers.
1750	1750	22 Beginning July 1, 2013, fuel and petroleum products sold
1751	1751	23 to or used by an air carrier, certified by the carrier to be
1752	1752	24 used for consumption, shipment, or storage in the conduct of
1753	1753	25 its business as an air common carrier, for a flight that (i) is
1754	1754	26 engaged in foreign trade or is engaged in trade between the
1755	1755
1756	1756
1757	1757
1758	1758
1759	1759
1760	1760	SB3128 - 48 - LRB103 38386 HLH 68521 b
1761	1761
1762	1762
1763	1763	SB3128- 49 -LRB103 38386 HLH 68521 b SB3128 - 49 - LRB103 38386 HLH 68521 b
1764	1764	SB3128 - 49 - LRB103 38386 HLH 68521 b
1765	1765	1 United States and any of its possessions and (ii) transports
1766	1766	2 at least one individual or package for hire from the city of
1767	1767	3 origination to the city of final destination on the same
1768	1768	4 aircraft, without regard to a change in the flight number of
1769	1769	5 that aircraft.
1770	1770	6 (9) Proceeds of mandatory service charges separately
1771	1771	7 stated on customers' bills for the purchase and consumption of
1772	1772	8 food and beverages, to the extent that the proceeds of the
1773	1773	9 service charge are in fact turned over as tips or as a
1774	1774	10 substitute for tips to the employees who participate directly
1775	1775	11 in preparing, serving, hosting or cleaning up the food or
1776	1776	12 beverage function with respect to which the service charge is
1777	1777	13 imposed.
1778	1778	14 (10) Until July 1, 2003, oil field exploration, drilling,
1779	1779	15 and production equipment, including (i) rigs and parts of
1780	1780	16 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1781	1781	17 pipe and tubular goods, including casing and drill strings,
1782	1782	18 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1783	1783	19 lines, (v) any individual replacement part for oil field
1784	1784	20 exploration, drilling, and production equipment, and (vi)
1785	1785	21 machinery and equipment purchased for lease; but excluding
1786	1786	22 motor vehicles required to be registered under the Illinois
1787	1787	23 Vehicle Code.
1788	1788	24 (11) Photoprocessing machinery and equipment, including
1789	1789	25 repair and replacement parts, both new and used, including
1790	1790	26 that manufactured on special order, certified by the purchaser
1791	1791
1792	1792
1793	1793
1794	1794
1795	1795
1796	1796	SB3128 - 49 - LRB103 38386 HLH 68521 b
1797	1797
1798	1798
1799	1799	SB3128- 50 -LRB103 38386 HLH 68521 b SB3128 - 50 - LRB103 38386 HLH 68521 b
1800	1800	SB3128 - 50 - LRB103 38386 HLH 68521 b
1801	1801	1 to be used primarily for photoprocessing, and including
1802	1802	2 photoprocessing machinery and equipment purchased for lease.
1803	1803	3 (12) Until July 1, 2028, coal and aggregate exploration,
1804	1804	4 mining, off-highway hauling, processing, maintenance, and
1805	1805	5 reclamation equipment, including replacement parts and
1806	1806	6 equipment, and including equipment purchased for lease, but
1807	1807	7 excluding motor vehicles required to be registered under the
1808	1808	8 Illinois Vehicle Code. The changes made to this Section by
1809	1809	9 Public Act 97-767 apply on and after July 1, 2003, but no claim
1810	1810	10 for credit or refund is allowed on or after August 16, 2013
1811	1811	11 (the effective date of Public Act 98-456) for such taxes paid
1812	1812	12 during the period beginning July 1, 2003 and ending on August
1813	1813	13 16, 2013 (the effective date of Public Act 98-456).
1814	1814	14 (13) Beginning January 1, 1992 and through June 30, 2016,
1815	1815	15 food for human consumption that is to be consumed off the
1816	1816	16 premises where it is sold (other than alcoholic beverages,
1817	1817	17 soft drinks and food that has been prepared for immediate
1818	1818	18 consumption) and prescription and non-prescription medicines,
1819	1819	19 drugs, medical appliances, and insulin, urine testing
1820	1820	20 materials, syringes, and needles used by diabetics, for human
1821	1821	21 use, when purchased for use by a person receiving medical
1822	1822	22 assistance under Article V of the Illinois Public Aid Code who
1823	1823	23 resides in a licensed long-term care facility, as defined in
1824	1824	24 the Nursing Home Care Act, or in a licensed facility as defined
1825	1825	25 in the ID/DD Community Care Act, the MC/DD Act, or the
1826	1826	26 Specialized Mental Health Rehabilitation Act of 2013.
1827	1827
1828	1828
1829	1829
1830	1830
1831	1831
1832	1832	SB3128 - 50 - LRB103 38386 HLH 68521 b
1833	1833
1834	1834
1835	1835	SB3128- 51 -LRB103 38386 HLH 68521 b SB3128 - 51 - LRB103 38386 HLH 68521 b
1836	1836	SB3128 - 51 - LRB103 38386 HLH 68521 b
1837	1837	1 (14) Semen used for artificial insemination of livestock
1838	1838	2 for direct agricultural production.
1839	1839	3 (15) Horses, or interests in horses, registered with and
1840	1840	4 meeting the requirements of any of the Arabian Horse Club
1841	1841	5 Registry of America, Appaloosa Horse Club, American Quarter
1842	1842	6 Horse Association, United States Trotting Association, or
1843	1843	7 Jockey Club, as appropriate, used for purposes of breeding or
1844	1844	8 racing for prizes. This item (15) is exempt from the
1845	1845	9 provisions of Section 3-55, and the exemption provided for
1846	1846	10 under this item (15) applies for all periods beginning May 30,
1847	1847	11 1995, but no claim for credit or refund is allowed on or after
1848	1848	12 January 1, 2008 (the effective date of Public Act 95-88) for
1849	1849	13 such taxes paid during the period beginning May 30, 2000 and
1850	1850	14 ending on January 1, 2008 (the effective date of Public Act
1851	1851	15 95-88).
1852	1852	16 (16) Computers and communications equipment utilized for
1853	1853	17 any hospital purpose and equipment used in the diagnosis,
1854	1854	18 analysis, or treatment of hospital patients sold to a lessor
1855	1855	19 who leases the equipment, under a lease of one year or longer
1856	1856	20 executed or in effect at the time of the purchase, to a
1857	1857	21 hospital that has been issued an active tax exemption
1858	1858	22 identification number by the Department under Section 1g of
1859	1859	23 the Retailers' Occupation Tax Act.
1860	1860	24 (17) Personal property sold to a lessor who leases the
1861	1861	25 property, under a lease of one year or longer executed or in
1862	1862	26 effect at the time of the purchase, to a governmental body that
1863	1863
1864	1864
1865	1865
1866	1866
1867	1867
1868	1868	SB3128 - 51 - LRB103 38386 HLH 68521 b
1869	1869
1870	1870
1871	1871	SB3128- 52 -LRB103 38386 HLH 68521 b SB3128 - 52 - LRB103 38386 HLH 68521 b
1872	1872	SB3128 - 52 - LRB103 38386 HLH 68521 b
1873	1873	1 has been issued an active tax exemption identification number
1874	1874	2 by the Department under Section 1g of the Retailers'
1875	1875	3 Occupation Tax Act.
1876	1876	4 (18) Beginning with taxable years ending on or after
1877	1877	5 December 31, 1995 and ending with taxable years ending on or
1878	1878	6 before December 31, 2004, personal property that is donated
1879	1879	7 for disaster relief to be used in a State or federally declared
1880	1880	8 disaster area in Illinois or bordering Illinois by a
1881	1881	9 manufacturer or retailer that is registered in this State to a
1882	1882	10 corporation, society, association, foundation, or institution
1883	1883	11 that has been issued a sales tax exemption identification
1884	1884	12 number by the Department that assists victims of the disaster
1885	1885	13 who reside within the declared disaster area.
1886	1886	14 (19) Beginning with taxable years ending on or after
1887	1887	15 December 31, 1995 and ending with taxable years ending on or
1888	1888	16 before December 31, 2004, personal property that is used in
1889	1889	17 the performance of infrastructure repairs in this State,
1890	1890	18 including, but not limited to, municipal roads and streets,
1891	1891	19 access roads, bridges, sidewalks, waste disposal systems,
1892	1892	20 water and sewer line extensions, water distribution and
1893	1893	21 purification facilities, storm water drainage and retention
1894	1894	22 facilities, and sewage treatment facilities, resulting from a
1895	1895	23 State or federally declared disaster in Illinois or bordering
1896	1896	24 Illinois when such repairs are initiated on facilities located
1897	1897	25 in the declared disaster area within 6 months after the
1898	1898	26 disaster.
1899	1899
1900	1900
1901	1901
1902	1902
1903	1903
1904	1904	SB3128 - 52 - LRB103 38386 HLH 68521 b
1905	1905
1906	1906
1907	1907	SB3128- 53 -LRB103 38386 HLH 68521 b SB3128 - 53 - LRB103 38386 HLH 68521 b
1908	1908	SB3128 - 53 - LRB103 38386 HLH 68521 b
1909	1909	1 (20) Beginning July 1, 1999, game or game birds sold at a
1910	1910	2 "game breeding and hunting preserve area" as that term is used
1911	1911	3 in the Wildlife Code. This paragraph is exempt from the
1912	1912	4 provisions of Section 3-55.
1913	1913	5 (21) A motor vehicle, as that term is defined in Section
1914	1914	6 1-146 of the Illinois Vehicle Code, that is donated to a
1915	1915	7 corporation, limited liability company, society, association,
1916	1916	8 foundation, or institution that is determined by the
1917	1917	9 Department to be organized and operated exclusively for
1918	1918	10 educational purposes. For purposes of this exemption, "a
1919	1919	11 corporation, limited liability company, society, association,
1920	1920	12 foundation, or institution organized and operated exclusively
1921	1921	13 for educational purposes" means all tax-supported public
1922	1922	14 schools, private schools that offer systematic instruction in
1923	1923	15 useful branches of learning by methods common to public
1924	1924	16 schools and that compare favorably in their scope and
1925	1925	17 intensity with the course of study presented in tax-supported
1926	1926	18 schools, and vocational or technical schools or institutes
1927	1927	19 organized and operated exclusively to provide a course of
1928	1928	20 study of not less than 6 weeks duration and designed to prepare
1929	1929	21 individuals to follow a trade or to pursue a manual,
1930	1930	22 technical, mechanical, industrial, business, or commercial
1931	1931	23 occupation.
1932	1932	24 (22) Beginning January 1, 2000, personal property,
1933	1933	25 including food, purchased through fundraising events for the
1934	1934	26 benefit of a public or private elementary or secondary school,
1935	1935
1936	1936
1937	1937
1938	1938
1939	1939
1940	1940	SB3128 - 53 - LRB103 38386 HLH 68521 b
1941	1941
1942	1942
1943	1943	SB3128- 54 -LRB103 38386 HLH 68521 b SB3128 - 54 - LRB103 38386 HLH 68521 b
1944	1944	SB3128 - 54 - LRB103 38386 HLH 68521 b
1945	1945	1 a group of those schools, or one or more school districts if
1946	1946	2 the events are sponsored by an entity recognized by the school
1947	1947	3 district that consists primarily of volunteers and includes
1948	1948	4 parents and teachers of the school children. This paragraph
1949	1949	5 does not apply to fundraising events (i) for the benefit of
1950	1950	6 private home instruction or (ii) for which the fundraising
1951	1951	7 entity purchases the personal property sold at the events from
1952	1952	8 another individual or entity that sold the property for the
1953	1953	9 purpose of resale by the fundraising entity and that profits
1954	1954	10 from the sale to the fundraising entity. This paragraph is
1955	1955	11 exempt from the provisions of Section 3-55.
1956	1956	12 (23) Beginning January 1, 2000 and through December 31,
1957	1957	13 2001, new or used automatic vending machines that prepare and
1958	1958	14 serve hot food and beverages, including coffee, soup, and
1959	1959	15 other items, and replacement parts for these machines.
1960	1960	16 Beginning January 1, 2002 and through June 30, 2003, machines
1961	1961	17 and parts for machines used in commercial, coin-operated
1962	1962	18 amusement and vending business if a use or occupation tax is
1963	1963	19 paid on the gross receipts derived from the use of the
1964	1964	20 commercial, coin-operated amusement and vending machines. This
1965	1965	21 paragraph is exempt from the provisions of Section 3-55.
1966	1966	22 (24) Beginning on August 2, 2001 (the effective date of
1967	1967	23 Public Act 92-227), computers and communications equipment
1968	1968	24 utilized for any hospital purpose and equipment used in the
1969	1969	25 diagnosis, analysis, or treatment of hospital patients sold to
1970	1970	26 a lessor who leases the equipment, under a lease of one year or
1971	1971
1972	1972
1973	1973
1974	1974
1975	1975
1976	1976	SB3128 - 54 - LRB103 38386 HLH 68521 b
1977	1977
1978	1978
1979	1979	SB3128- 55 -LRB103 38386 HLH 68521 b SB3128 - 55 - LRB103 38386 HLH 68521 b
1980	1980	SB3128 - 55 - LRB103 38386 HLH 68521 b
1981	1981	1 longer executed or in effect at the time of the purchase, to a
1982	1982	2 hospital that has been issued an active tax exemption
1983	1983	3 identification number by the Department under Section 1g of
1984	1984	4 the Retailers' Occupation Tax Act. This paragraph is exempt
1985	1985	5 from the provisions of Section 3-55.
1986	1986	6 (25) Beginning on August 2, 2001 (the effective date of
1987	1987	7 Public Act 92-227), personal property sold to a lessor who
1988	1988	8 leases the property, under a lease of one year or longer
1989	1989	9 executed or in effect at the time of the purchase, to a
1990	1990	10 governmental body that has been issued an active tax exemption
1991	1991	11 identification number by the Department under Section 1g of
1992	1992	12 the Retailers' Occupation Tax Act. This paragraph is exempt
1993	1993	13 from the provisions of Section 3-55.
1994	1994	14 (26) Beginning on January 1, 2002 and through June 30,
1995	1995	15 2016, tangible personal property purchased from an Illinois
1996	1996	16 retailer by a taxpayer engaged in centralized purchasing
1997	1997	17 activities in Illinois who will, upon receipt of the property
1998	1998	18 in Illinois, temporarily store the property in Illinois (i)
1999	1999	19 for the purpose of subsequently transporting it outside this
2000	2000	20 State for use or consumption thereafter solely outside this
2001	2001	21 State or (ii) for the purpose of being processed, fabricated,
2002	2002	22 or manufactured into, attached to, or incorporated into other
2003	2003	23 tangible personal property to be transported outside this
2004	2004	24 State and thereafter used or consumed solely outside this
2005	2005	25 State. The Director of Revenue shall, pursuant to rules
2006	2006	26 adopted in accordance with the Illinois Administrative
2007	2007
2008	2008
2009	2009
2010	2010
2011	2011
2012	2012	SB3128 - 55 - LRB103 38386 HLH 68521 b
2013	2013
2014	2014
2015	2015	SB3128- 56 -LRB103 38386 HLH 68521 b SB3128 - 56 - LRB103 38386 HLH 68521 b
2016	2016	SB3128 - 56 - LRB103 38386 HLH 68521 b
2017	2017	1 Procedure Act, issue a permit to any taxpayer in good standing
2018	2018	2 with the Department who is eligible for the exemption under
2019	2019	3 this paragraph (26). The permit issued under this paragraph
2020	2020	4 (26) shall authorize the holder, to the extent and in the
2021	2021	5 manner specified in the rules adopted under this Act, to
2022	2022	6 purchase tangible personal property from a retailer exempt
2023	2023	7 from the taxes imposed by this Act. Taxpayers shall maintain
2024	2024	8 all necessary books and records to substantiate the use and
2025	2025	9 consumption of all such tangible personal property outside of
2026	2026	10 the State of Illinois.
2027	2027	11 (27) Beginning January 1, 2008, tangible personal property
2028	2028	12 used in the construction or maintenance of a community water
2029	2029	13 supply, as defined under Section 3.145 of the Environmental
2030	2030	14 Protection Act, that is operated by a not-for-profit
2031	2031	15 corporation that holds a valid water supply permit issued
2032	2032	16 under Title IV of the Environmental Protection Act. This
2033	2033	17 paragraph is exempt from the provisions of Section 3-55.
2034	2034	18 (28) Tangible personal property sold to a
2035	2035	19 public-facilities corporation, as described in Section
2036	2036	20 11-65-10 of the Illinois Municipal Code, for purposes of
2037	2037	21 constructing or furnishing a municipal convention hall, but
2038	2038	22 only if the legal title to the municipal convention hall is
2039	2039	23 transferred to the municipality without any further
2040	2040	24 consideration by or on behalf of the municipality at the time
2041	2041	25 of the completion of the municipal convention hall or upon the
2042	2042	26 retirement or redemption of any bonds or other debt
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047
2048	2048	SB3128 - 56 - LRB103 38386 HLH 68521 b
2049	2049
2050	2050
2051	2051	SB3128- 57 -LRB103 38386 HLH 68521 b SB3128 - 57 - LRB103 38386 HLH 68521 b
2052	2052	SB3128 - 57 - LRB103 38386 HLH 68521 b
2053	2053	1 instruments issued by the public-facilities corporation in
2054	2054	2 connection with the development of the municipal convention
2055	2055	3 hall. This exemption includes existing public-facilities
2056	2056	4 corporations as provided in Section 11-65-25 of the Illinois
2057	2057	5 Municipal Code. This paragraph is exempt from the provisions
2058	2058	6 of Section 3-55.
2059	2059	7 (29) Beginning January 1, 2010 and continuing through
2060	2060	8 December 31, 2029, materials, parts, equipment, components,
2061	2061	9 and furnishings incorporated into or upon an aircraft as part
2062	2062	10 of the modification, refurbishment, completion, replacement,
2063	2063	11 repair, or maintenance of the aircraft. This exemption
2064	2064	12 includes consumable supplies used in the modification,
2065	2065	13 refurbishment, completion, replacement, repair, and
2066	2066	14 maintenance of aircraft. However, until January 1, 2024, this
2067	2067	15 exemption excludes any materials, parts, equipment,
2068	2068	16 components, and consumable supplies used in the modification,
2069	2069	17 replacement, repair, and maintenance of aircraft engines or
2070	2070	18 power plants, whether such engines or power plants are
2071	2071	19 installed or uninstalled upon any such aircraft. "Consumable
2072	2072	20 supplies" include, but are not limited to, adhesive, tape,
2073	2073	21 sandpaper, general purpose lubricants, cleaning solution,
2074	2074	22 latex gloves, and protective films.
2075	2075	23 Beginning January 1, 2010 and continuing through December
2076	2076	24 31, 2023, this exemption applies only to the transfer of
2077	2077	25 qualifying tangible personal property incident to the
2078	2078	26 modification, refurbishment, completion, replacement, repair,
2079	2079
2080	2080
2081	2081
2082	2082
2083	2083
2084	2084	SB3128 - 57 - LRB103 38386 HLH 68521 b
2085	2085
2086	2086
2087	2087	SB3128- 58 -LRB103 38386 HLH 68521 b SB3128 - 58 - LRB103 38386 HLH 68521 b
2088	2088	SB3128 - 58 - LRB103 38386 HLH 68521 b
2089	2089	1 or maintenance of an aircraft by persons who (i) hold an Air
2090	2090	2 Agency Certificate and are empowered to operate an approved
2091	2091	3 repair station by the Federal Aviation Administration, (ii)
2092	2092	4 have a Class IV Rating, and (iii) conduct operations in
2093	2093	5 accordance with Part 145 of the Federal Aviation Regulations.
2094	2094	6 The exemption does not include aircraft operated by a
2095	2095	7 commercial air carrier providing scheduled passenger air
2096	2096	8 service pursuant to authority issued under Part 121 or Part
2097	2097	9 129 of the Federal Aviation Regulations. From January 1, 2024
2098	2098	10 through December 31, 2029, this exemption applies only to the
2099	2099	11 use of qualifying tangible personal property by: (A) persons
2100	2100	12 who modify, refurbish, complete, repair, replace, or maintain
2101	2101	13 aircraft and who (i) hold an Air Agency Certificate and are
2102	2102	14 empowered to operate an approved repair station by the Federal
2103	2103	15 Aviation Administration, (ii) have a Class IV Rating, and
2104	2104	16 (iii) conduct operations in accordance with Part 145 of the
2105	2105	17 Federal Aviation Regulations; and (B) persons who engage in
2106	2106	18 the modification, replacement, repair, and maintenance of
2107	2107	19 aircraft engines or power plants without regard to whether or
2108	2108	20 not those persons meet the qualifications of item (A).
2109	2109	21 The changes made to this paragraph (29) by Public Act
2110	2110	22 98-534 are declarative of existing law. It is the intent of the
2111	2111	23 General Assembly that the exemption under this paragraph (29)
2112	2112	24 applies continuously from January 1, 2010 through December 31,
2113	2113	25 2024; however, no claim for credit or refund is allowed for
2114	2114	26 taxes paid as a result of the disallowance of this exemption on
2115	2115
2116	2116
2117	2117
2118	2118
2119	2119
2120	2120	SB3128 - 58 - LRB103 38386 HLH 68521 b
2121	2121
2122	2122
2123	2123	SB3128- 59 -LRB103 38386 HLH 68521 b SB3128 - 59 - LRB103 38386 HLH 68521 b
2124	2124	SB3128 - 59 - LRB103 38386 HLH 68521 b
2125	2125	1 or after January 1, 2015 and prior to February 5, 2020 (the
2126	2126	2 effective date of Public Act 101-629).
2127	2127	3 (30) Beginning January 1, 2017 and through December 31,
2128	2128	4 2026, menstrual pads, tampons, and menstrual cups.
2129	2129	5 (31) Tangible personal property transferred to a purchaser
2130	2130	6 who is exempt from tax by operation of federal law. This
2131	2131	7 paragraph is exempt from the provisions of Section 3-55.
2132	2132	8 (32) Qualified tangible personal property used in the
2133	2133	9 construction or operation of a data center that has been
2134	2134	10 granted a certificate of exemption by the Department of
2135	2135	11 Commerce and Economic Opportunity, whether that tangible
2136	2136	12 personal property is purchased by the owner, operator, or
2137	2137	13 tenant of the data center or by a contractor or subcontractor
2138	2138	14 of the owner, operator, or tenant. Data centers that would
2139	2139	15 have qualified for a certificate of exemption prior to January
2140	2140	16 1, 2020 had Public Act 101-31 been in effect, may apply for and
2141	2141	17 obtain an exemption for subsequent purchases of computer
2142	2142	18 equipment or enabling software purchased or leased to upgrade,
2143	2143	19 supplement, or replace computer equipment or enabling software
2144	2144	20 purchased or leased in the original investment that would have
2145	2145	21 qualified.
2146	2146	22 The Department of Commerce and Economic Opportunity shall
2147	2147	23 grant a certificate of exemption under this item (32) to
2148	2148	24 qualified data centers as defined by Section 605-1025 of the
2149	2149	25 Department of Commerce and Economic Opportunity Law of the
2150	2150	26 Civil Administrative Code of Illinois.
2151	2151
2152	2152
2153	2153
2154	2154
2155	2155
2156	2156	SB3128 - 59 - LRB103 38386 HLH 68521 b
2157	2157
2158	2158
2159	2159	SB3128- 60 -LRB103 38386 HLH 68521 b SB3128 - 60 - LRB103 38386 HLH 68521 b
2160	2160	SB3128 - 60 - LRB103 38386 HLH 68521 b
2161	2161	1 For the purposes of this item (32):
2162	2162	2 "Data center" means a building or a series of
2163	2163	3 buildings rehabilitated or constructed to house working
2164	2164	4 servers in one physical location or multiple sites within
2165	2165	5 the State of Illinois.
2166	2166	6 "Qualified tangible personal property" means:
2167	2167	7 electrical systems and equipment; climate control and
2168	2168	8 chilling equipment and systems; mechanical systems and
2169	2169	9 equipment; monitoring and secure systems; emergency
2170	2170	10 generators; hardware; computers; servers; data storage
2171	2171	11 devices; network connectivity equipment; racks; cabinets;
2172	2172	12 telecommunications cabling infrastructure; raised floor
2173	2173	13 systems; peripheral components or systems; software;
2174	2174	14 mechanical, electrical, or plumbing systems; battery
2175	2175	15 systems; cooling systems and towers; temperature control
2176	2176	16 systems; other cabling; and other data center
2177	2177	17 infrastructure equipment and systems necessary to operate
2178	2178	18 qualified tangible personal property, including fixtures;
2179	2179	19 and component parts of any of the foregoing, including
2180	2180	20 installation, maintenance, repair, refurbishment, and
2181	2181	21 replacement of qualified tangible personal property to
2182	2182	22 generate, transform, transmit, distribute, or manage
2183	2183	23 electricity necessary to operate qualified tangible
2184	2184	24 personal property; and all other tangible personal
2185	2185	25 property that is essential to the operations of a computer
2186	2186	26 data center. The term "qualified tangible personal
2187	2187
2188	2188
2189	2189
2190	2190
2191	2191
2192	2192	SB3128 - 60 - LRB103 38386 HLH 68521 b
2193	2193
2194	2194
2195	2195	SB3128- 61 -LRB103 38386 HLH 68521 b SB3128 - 61 - LRB103 38386 HLH 68521 b
2196	2196	SB3128 - 61 - LRB103 38386 HLH 68521 b
2197	2197	1 property" also includes building materials physically
2198	2198	2 incorporated into in to the qualifying data center. To
2199	2199	3 document the exemption allowed under this Section, the
2200	2200	4 retailer must obtain from the purchaser a copy of the
2201	2201	5 certificate of eligibility issued by the Department of
2202	2202	6 Commerce and Economic Opportunity.
2203	2203	7 This item (32) is exempt from the provisions of Section
2204	2204	8 3-55.
2205	2205	9 (33) Beginning July 1, 2022, breast pumps, breast pump
2206	2206	10 collection and storage supplies, and breast pump kits. This
2207	2207	11 item (33) is exempt from the provisions of Section 3-55. As
2208	2208	12 used in this item (33):
2209	2209	13 "Breast pump" means an electrically controlled or
2210	2210	14 manually controlled pump device designed or marketed to be
2211	2211	15 used to express milk from a human breast during lactation,
2212	2212	16 including the pump device and any battery, AC adapter, or
2213	2213	17 other power supply unit that is used to power the pump
2214	2214	18 device and is packaged and sold with the pump device at the
2215	2215	19 time of sale.
2216	2216	20 "Breast pump collection and storage supplies" means
2217	2217	21 items of tangible personal property designed or marketed
2218	2218	22 to be used in conjunction with a breast pump to collect
2219	2219	23 milk expressed from a human breast and to store collected
2220	2220	24 milk until it is ready for consumption.
2221	2221	25 "Breast pump collection and storage supplies"
2222	2222	26 includes, but is not limited to: breast shields and breast
2223	2223
2224	2224
2225	2225
2226	2226
2227	2227
2228	2228	SB3128 - 61 - LRB103 38386 HLH 68521 b
2229	2229
2230	2230
2231	2231	SB3128- 62 -LRB103 38386 HLH 68521 b SB3128 - 62 - LRB103 38386 HLH 68521 b
2232	2232	SB3128 - 62 - LRB103 38386 HLH 68521 b
2233	2233	1 shield connectors; breast pump tubes and tubing adapters;
2234	2234	2 breast pump valves and membranes; backflow protectors and
2235	2235	3 backflow protector adaptors; bottles and bottle caps
2236	2236	4 specific to the operation of the breast pump; and breast
2237	2237	5 milk storage bags.
2238	2238	6 "Breast pump collection and storage supplies" does not
2239	2239	7 include: (1) bottles and bottle caps not specific to the
2240	2240	8 operation of the breast pump; (2) breast pump travel bags
2241	2241	9 and other similar carrying accessories, including ice
2242	2242	10 packs, labels, and other similar products; (3) breast pump
2243	2243	11 cleaning supplies; (4) nursing bras, bra pads, breast
2244	2244	12 shells, and other similar products; and (5) creams,
2245	2245	13 ointments, and other similar products that relieve
2246	2246	14 breastfeeding-related symptoms or conditions of the
2247	2247	15 breasts or nipples, unless sold as part of a breast pump
2248	2248	16 kit that is pre-packaged by the breast pump manufacturer
2249	2249	17 or distributor.
2250	2250	18 "Breast pump kit" means a kit that: (1) contains no
2251	2251	19 more than a breast pump, breast pump collection and
2252	2252	20 storage supplies, a rechargeable battery for operating the
2253	2253	21 breast pump, a breastmilk cooler, bottle stands, ice
2254	2254	22 packs, and a breast pump carrying case; and (2) is
2255	2255	23 pre-packaged as a breast pump kit by the breast pump
2256	2256	24 manufacturer or distributor.
2257	2257	25 (34) Tangible personal property sold by or on behalf of
2258	2258	26 the State Treasurer pursuant to the Revised Uniform Unclaimed
2259	2259
2260	2260
2261	2261
2262	2262
2263	2263
2264	2264	SB3128 - 62 - LRB103 38386 HLH 68521 b
2265	2265
2266	2266
2267	2267	SB3128- 63 -LRB103 38386 HLH 68521 b SB3128 - 63 - LRB103 38386 HLH 68521 b
2268	2268	SB3128 - 63 - LRB103 38386 HLH 68521 b
2269	2269	1 Property Act. This item (34) is exempt from the provisions of
2270	2270	2 Section 3-55.
2271	2271	3 (35) Beginning on January 1, 2024, tangible personal
2272	2272	4 property purchased by an active duty member of the armed
2273	2273	5 forces of the United States who presents valid military
2274	2274	6 identification and purchases the property using a form of
2275	2275	7 payment where the federal government is the payor. The member
2276	2276	8 of the armed forces must complete, at the point of sale, a form
2277	2277	9 prescribed by the Department of Revenue documenting that the
2278	2278	10 transaction is eligible for the exemption under this
2279	2279	11 paragraph. Retailers must keep the form as documentation of
2280	2280	12 the exemption in their records for a period of not less than 6
2281	2281	13 years. "Armed forces of the United States" means the United
2282	2282	14 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2283	2283	15 This paragraph is exempt from the provisions of Section 3-55.
2284	2284	16 (36) Diapers, baby wipes, car seats, infant formula, and
2285	2285	17 bottles suitable for feeding infants. This item (36) is exempt
2286	2286	18 from the provisions of Section 3-55.
2287	2287	19 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2288	2288	20 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2289	2289	21 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2290	2290	22 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2291	2291	23 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2292	2292	24 revised 12-12-23.)
2293	2293	25 Section 20. The Retailers' Occupation Tax Act is amended
2294	2294
2295	2295
2296	2296
2297	2297
2298	2298
2299	2299	SB3128 - 63 - LRB103 38386 HLH 68521 b
2300	2300
2301	2301
2302	2302	SB3128- 64 -LRB103 38386 HLH 68521 b SB3128 - 64 - LRB103 38386 HLH 68521 b
2303	2303	SB3128 - 64 - LRB103 38386 HLH 68521 b
2304	2304	1 by changing Section 2-5 as follows:
2305	2305	2 (35 ILCS 120/2-5)
2306	2306	3 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2307	2307	4 the sale of the following tangible personal property are
2308	2308	5 exempt from the tax imposed by this Act:
2309	2309	6 (1) Farm chemicals.
2310	2310	7 (2) Farm machinery and equipment, both new and used,
2311	2311	8 including that manufactured on special order, certified by
2312	2312	9 the purchaser to be used primarily for production
2313	2313	10 agriculture or State or federal agricultural programs,
2314	2314	11 including individual replacement parts for the machinery
2315	2315	12 and equipment, including machinery and equipment purchased
2316	2316	13 for lease, and including implements of husbandry defined
2317	2317	14 in Section 1-130 of the Illinois Vehicle Code, farm
2318	2318	15 machinery and agricultural chemical and fertilizer
2319	2319	16 spreaders, and nurse wagons required to be registered
2320	2320	17 under Section 3-809 of the Illinois Vehicle Code, but
2321	2321	18 excluding other motor vehicles required to be registered
2322	2322	19 under the Illinois Vehicle Code. Horticultural polyhouses
2323	2323	20 or hoop houses used for propagating, growing, or
2324	2324	21 overwintering plants shall be considered farm machinery
2325	2325	22 and equipment under this item (2). Agricultural chemical
2326	2326	23 tender tanks and dry boxes shall include units sold
2327	2327	24 separately from a motor vehicle required to be licensed
2328	2328	25 and units sold mounted on a motor vehicle required to be
2329	2329
2330	2330
2331	2331
2332	2332
2333	2333
2334	2334	SB3128 - 64 - LRB103 38386 HLH 68521 b
2335	2335
2336	2336
2337	2337	SB3128- 65 -LRB103 38386 HLH 68521 b SB3128 - 65 - LRB103 38386 HLH 68521 b
2338	2338	SB3128 - 65 - LRB103 38386 HLH 68521 b
2339	2339	1 licensed, if the selling price of the tender is separately
2340	2340	2 stated.
2341	2341	3 Farm machinery and equipment shall include precision
2342	2342	4 farming equipment that is installed or purchased to be
2343	2343	5 installed on farm machinery and equipment including, but
2344	2344	6 not limited to, tractors, harvesters, sprayers, planters,
2345	2345	7 seeders, or spreaders. Precision farming equipment
2346	2346	8 includes, but is not limited to, soil testing sensors,
2347	2347	9 computers, monitors, software, global positioning and
2348	2348	10 mapping systems, and other such equipment.
2349	2349	11 Farm machinery and equipment also includes computers,
2350	2350	12 sensors, software, and related equipment used primarily in
2351	2351	13 the computer-assisted operation of production agriculture
2352	2352	14 facilities, equipment, and activities such as, but not
2353	2353	15 limited to, the collection, monitoring, and correlation of
2354	2354	16 animal and crop data for the purpose of formulating animal
2355	2355	17 diets and agricultural chemicals.
2356	2356	18 Beginning on January 1, 2024, farm machinery and
2357	2357	19 equipment also includes electrical power generation
2358	2358	20 equipment used primarily for production agriculture.
2359	2359	21 This item (2) is exempt from the provisions of Section
2360	2360	22 2-70.
2361	2361	23 (3) Until July 1, 2003, distillation machinery and
2362	2362	24 equipment, sold as a unit or kit, assembled or installed
2363	2363	25 by the retailer, certified by the user to be used only for
2364	2364	26 the production of ethyl alcohol that will be used for
2365	2365
2366	2366
2367	2367
2368	2368
2369	2369
2370	2370	SB3128 - 65 - LRB103 38386 HLH 68521 b
2371	2371
2372	2372
2373	2373	SB3128- 66 -LRB103 38386 HLH 68521 b SB3128 - 66 - LRB103 38386 HLH 68521 b
2374	2374	SB3128 - 66 - LRB103 38386 HLH 68521 b
2375	2375	1 consumption as motor fuel or as a component of motor fuel
2376	2376	2 for the personal use of the user, and not subject to sale
2377	2377	3 or resale.
2378	2378	4 (4) Until July 1, 2003 and beginning again September
2379	2379	5 1, 2004 through August 30, 2014, graphic arts machinery
2380	2380	6 and equipment, including repair and replacement parts,
2381	2381	7 both new and used, and including that manufactured on
2382	2382	8 special order or purchased for lease, certified by the
2383	2383	9 purchaser to be used primarily for graphic arts
2384	2384	10 production. Equipment includes chemicals or chemicals
2385	2385	11 acting as catalysts but only if the chemicals or chemicals
2386	2386	12 acting as catalysts effect a direct and immediate change
2387	2387	13 upon a graphic arts product. Beginning on July 1, 2017,
2388	2388	14 graphic arts machinery and equipment is included in the
2389	2389	15 manufacturing and assembling machinery and equipment
2390	2390	16 exemption under paragraph (14).
2391	2391	17 (5) A motor vehicle that is used for automobile
2392	2392	18 renting, as defined in the Automobile Renting Occupation
2393	2393	19 and Use Tax Act. This paragraph is exempt from the
2394	2394	20 provisions of Section 2-70.
2395	2395	21 (6) Personal property sold by a teacher-sponsored
2396	2396	22 student organization affiliated with an elementary or
2397	2397	23 secondary school located in Illinois.
2398	2398	24 (7) Until July 1, 2003, proceeds of that portion of
2399	2399	25 the selling price of a passenger car the sale of which is
2400	2400	26 subject to the Replacement Vehicle Tax.
2401	2401
2402	2402
2403	2403
2404	2404
2405	2405
2406	2406	SB3128 - 66 - LRB103 38386 HLH 68521 b
2407	2407
2408	2408
2409	2409	SB3128- 67 -LRB103 38386 HLH 68521 b SB3128 - 67 - LRB103 38386 HLH 68521 b
2410	2410	SB3128 - 67 - LRB103 38386 HLH 68521 b
2411	2411	1 (8) Personal property sold to an Illinois county fair
2412	2412	2 association for use in conducting, operating, or promoting
2413	2413	3 the county fair.
2414	2414	4 (9) Personal property sold to a not-for-profit arts or
2415	2415	5 cultural organization that establishes, by proof required
2416	2416	6 by the Department by rule, that it has received an
2417	2417	7 exemption under Section 501(c)(3) of the Internal Revenue
2418	2418	8 Code and that is organized and operated primarily for the
2419	2419	9 presentation or support of arts or cultural programming,
2420	2420	10 activities, or services. These organizations include, but
2421	2421	11 are not limited to, music and dramatic arts organizations
2422	2422	12 such as symphony orchestras and theatrical groups, arts
2423	2423	13 and cultural service organizations, local arts councils,
2424	2424	14 visual arts organizations, and media arts organizations.
2425	2425	15 On and after July 1, 2001 (the effective date of Public Act
2426	2426	16 92-35), however, an entity otherwise eligible for this
2427	2427	17 exemption shall not make tax-free purchases unless it has
2428	2428	18 an active identification number issued by the Department.
2429	2429	19 (10) Personal property sold by a corporation, society,
2430	2430	20 association, foundation, institution, or organization,
2431	2431	21 other than a limited liability company, that is organized
2432	2432	22 and operated as a not-for-profit service enterprise for
2433	2433	23 the benefit of persons 65 years of age or older if the
2434	2434	24 personal property was not purchased by the enterprise for
2435	2435	25 the purpose of resale by the enterprise.
2436	2436	26 (11) Except as otherwise provided in this Section,
2437	2437
2438	2438
2439	2439
2440	2440
2441	2441
2442	2442	SB3128 - 67 - LRB103 38386 HLH 68521 b
2443	2443
2444	2444
2445	2445	SB3128- 68 -LRB103 38386 HLH 68521 b SB3128 - 68 - LRB103 38386 HLH 68521 b
2446	2446	SB3128 - 68 - LRB103 38386 HLH 68521 b
2447	2447	1 personal property sold to a governmental body, to a
2448	2448	2 corporation, society, association, foundation, or
2449	2449	3 institution organized and operated exclusively for
2450	2450	4 charitable, religious, or educational purposes, or to a
2451	2451	5 not-for-profit corporation, society, association,
2452	2452	6 foundation, institution, or organization that has no
2453	2453	7 compensated officers or employees and that is organized
2454	2454	8 and operated primarily for the recreation of persons 55
2455	2455	9 years of age or older. A limited liability company may
2456	2456	10 qualify for the exemption under this paragraph only if the
2457	2457	11 limited liability company is organized and operated
2458	2458	12 exclusively for educational purposes. On and after July 1,
2459	2459	13 1987, however, no entity otherwise eligible for this
2460	2460	14 exemption shall make tax-free purchases unless it has an
2461	2461	15 active identification number issued by the Department.
2462	2462	16 (12) (Blank).
2463	2463	17 (12-5) On and after July 1, 2003 and through June 30,
2464	2464	18 2004, motor vehicles of the second division with a gross
2465	2465	19 vehicle weight in excess of 8,000 pounds that are subject
2466	2466	20 to the commercial distribution fee imposed under Section
2467	2467	21 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2468	2468	22 2004 and through June 30, 2005, the use in this State of
2469	2469	23 motor vehicles of the second division: (i) with a gross
2470	2470	24 vehicle weight rating in excess of 8,000 pounds; (ii) that
2471	2471	25 are subject to the commercial distribution fee imposed
2472	2472	26 under Section 3-815.1 of the Illinois Vehicle Code; and
2473	2473
2474	2474
2475	2475
2476	2476
2477	2477
2478	2478	SB3128 - 68 - LRB103 38386 HLH 68521 b
2479	2479
2480	2480
2481	2481	SB3128- 69 -LRB103 38386 HLH 68521 b SB3128 - 69 - LRB103 38386 HLH 68521 b
2482	2482	SB3128 - 69 - LRB103 38386 HLH 68521 b
2483	2483	1 (iii) that are primarily used for commercial purposes.
2484	2484	2 Through June 30, 2005, this exemption applies to repair
2485	2485	3 and replacement parts added after the initial purchase of
2486	2486	4 such a motor vehicle if that motor vehicle is used in a
2487	2487	5 manner that would qualify for the rolling stock exemption
2488	2488	6 otherwise provided for in this Act. For purposes of this
2489	2489	7 paragraph, "used for commercial purposes" means the
2490	2490	8 transportation of persons or property in furtherance of
2491	2491	9 any commercial or industrial enterprise whether for-hire
2492	2492	10 or not.
2493	2493	11 (13) Proceeds from sales to owners, lessors, or
2494	2494	12 shippers of tangible personal property that is utilized by
2495	2495	13 interstate carriers for hire for use as rolling stock
2496	2496	14 moving in interstate commerce and equipment operated by a
2497	2497	15 telecommunications provider, licensed as a common carrier
2498	2498	16 by the Federal Communications Commission, which is
2499	2499	17 permanently installed in or affixed to aircraft moving in
2500	2500	18 interstate commerce.
2501	2501	19 (14) Machinery and equipment that will be used by the
2502	2502	20 purchaser, or a lessee of the purchaser, primarily in the
2503	2503	21 process of manufacturing or assembling tangible personal
2504	2504	22 property for wholesale or retail sale or lease, whether
2505	2505	23 the sale or lease is made directly by the manufacturer or
2506	2506	24 by some other person, whether the materials used in the
2507	2507	25 process are owned by the manufacturer or some other
2508	2508	26 person, or whether the sale or lease is made apart from or
2509	2509
2510	2510
2511	2511
2512	2512
2513	2513
2514	2514	SB3128 - 69 - LRB103 38386 HLH 68521 b
2515	2515
2516	2516
2517	2517	SB3128- 70 -LRB103 38386 HLH 68521 b SB3128 - 70 - LRB103 38386 HLH 68521 b
2518	2518	SB3128 - 70 - LRB103 38386 HLH 68521 b
2519	2519	1 as an incident to the seller's engaging in the service
2520	2520	2 occupation of producing machines, tools, dies, jigs,
2521	2521	3 patterns, gauges, or other similar items of no commercial
2522	2522	4 value on special order for a particular purchaser. The
2523	2523	5 exemption provided by this paragraph (14) does not include
2524	2524	6 machinery and equipment used in (i) the generation of
2525	2525	7 electricity for wholesale or retail sale; (ii) the
2526	2526	8 generation or treatment of natural or artificial gas for
2527	2527	9 wholesale or retail sale that is delivered to customers
2528	2528	10 through pipes, pipelines, or mains; or (iii) the treatment
2529	2529	11 of water for wholesale or retail sale that is delivered to
2530	2530	12 customers through pipes, pipelines, or mains. The
2531	2531	13 provisions of Public Act 98-583 are declaratory of
2532	2532	14 existing law as to the meaning and scope of this
2533	2533	15 exemption. Beginning on July 1, 2017, the exemption
2534	2534	16 provided by this paragraph (14) includes, but is not
2535	2535	17 limited to, graphic arts machinery and equipment, as
2536	2536	18 defined in paragraph (4) of this Section.
2537	2537	19 (15) Proceeds of mandatory service charges separately
2538	2538	20 stated on customers' bills for purchase and consumption of
2539	2539	21 food and beverages, to the extent that the proceeds of the
2540	2540	22 service charge are in fact turned over as tips or as a
2541	2541	23 substitute for tips to the employees who participate
2542	2542	24 directly in preparing, serving, hosting or cleaning up the
2543	2543	25 food or beverage function with respect to which the
2544	2544	26 service charge is imposed.
2545	2545
2546	2546
2547	2547
2548	2548
2549	2549
2550	2550	SB3128 - 70 - LRB103 38386 HLH 68521 b
2551	2551
2552	2552
2553	2553	SB3128- 71 -LRB103 38386 HLH 68521 b SB3128 - 71 - LRB103 38386 HLH 68521 b
2554	2554	SB3128 - 71 - LRB103 38386 HLH 68521 b
2555	2555	1 (16) Tangible personal property sold to a purchaser if
2556	2556	2 the purchaser is exempt from use tax by operation of
2557	2557	3 federal law. This paragraph is exempt from the provisions
2558	2558	4 of Section 2-70.
2559	2559	5 (17) Tangible personal property sold to a common
2560	2560	6 carrier by rail or motor that receives the physical
2561	2561	7 possession of the property in Illinois and that transports
2562	2562	8 the property, or shares with another common carrier in the
2563	2563	9 transportation of the property, out of Illinois on a
2564	2564	10 standard uniform bill of lading showing the seller of the
2565	2565	11 property as the shipper or consignor of the property to a
2566	2566	12 destination outside Illinois, for use outside Illinois.
2567	2567	13 (18) Legal tender, currency, medallions, or gold or
2568	2568	14 silver coinage issued by the State of Illinois, the
2569	2569	15 government of the United States of America, or the
2570	2570	16 government of any foreign country, and bullion.
2571	2571	17 (19) Until July 1, 2003, oil field exploration,
2572	2572	18 drilling, and production equipment, including (i) rigs and
2573	2573	19 parts of rigs, rotary rigs, cable tool rigs, and workover
2574	2574	20 rigs, (ii) pipe and tubular goods, including casing and
2575	2575	21 drill strings, (iii) pumps and pump-jack units, (iv)
2576	2576	22 storage tanks and flow lines, (v) any individual
2577	2577	23 replacement part for oil field exploration, drilling, and
2578	2578	24 production equipment, and (vi) machinery and equipment
2579	2579	25 purchased for lease; but excluding motor vehicles required
2580	2580	26 to be registered under the Illinois Vehicle Code.
2581	2581
2582	2582
2583	2583
2584	2584
2585	2585
2586	2586	SB3128 - 71 - LRB103 38386 HLH 68521 b
2587	2587
2588	2588
2589	2589	SB3128- 72 -LRB103 38386 HLH 68521 b SB3128 - 72 - LRB103 38386 HLH 68521 b
2590	2590	SB3128 - 72 - LRB103 38386 HLH 68521 b
2591	2591	1 (20) Photoprocessing machinery and equipment,
2592	2592	2 including repair and replacement parts, both new and used,
2593	2593	3 including that manufactured on special order, certified by
2594	2594	4 the purchaser to be used primarily for photoprocessing,
2595	2595	5 and including photoprocessing machinery and equipment
2596	2596	6 purchased for lease.
2597	2597	7 (21) Until July 1, 2028, coal and aggregate
2598	2598	8 exploration, mining, off-highway hauling, processing,
2599	2599	9 maintenance, and reclamation equipment, including
2600	2600	10 replacement parts and equipment, and including equipment
2601	2601	11 purchased for lease, but excluding motor vehicles required
2602	2602	12 to be registered under the Illinois Vehicle Code. The
2603	2603	13 changes made to this Section by Public Act 97-767 apply on
2604	2604	14 and after July 1, 2003, but no claim for credit or refund
2605	2605	15 is allowed on or after August 16, 2013 (the effective date
2606	2606	16 of Public Act 98-456) for such taxes paid during the
2607	2607	17 period beginning July 1, 2003 and ending on August 16,
2608	2608	18 2013 (the effective date of Public Act 98-456).
2609	2609	19 (22) Until June 30, 2013, fuel and petroleum products
2610	2610	20 sold to or used by an air carrier, certified by the carrier
2611	2611	21 to be used for consumption, shipment, or storage in the
2612	2612	22 conduct of its business as an air common carrier, for a
2613	2613	23 flight destined for or returning from a location or
2614	2614	24 locations outside the United States without regard to
2615	2615	25 previous or subsequent domestic stopovers.
2616	2616	26 Beginning July 1, 2013, fuel and petroleum products
2617	2617
2618	2618
2619	2619
2620	2620
2621	2621
2622	2622	SB3128 - 72 - LRB103 38386 HLH 68521 b
2623	2623
2624	2624
2625	2625	SB3128- 73 -LRB103 38386 HLH 68521 b SB3128 - 73 - LRB103 38386 HLH 68521 b
2626	2626	SB3128 - 73 - LRB103 38386 HLH 68521 b
2627	2627	1 sold to or used by an air carrier, certified by the carrier
2628	2628	2 to be used for consumption, shipment, or storage in the
2629	2629	3 conduct of its business as an air common carrier, for a
2630	2630	4 flight that (i) is engaged in foreign trade or is engaged
2631	2631	5 in trade between the United States and any of its
2632	2632	6 possessions and (ii) transports at least one individual or
2633	2633	7 package for hire from the city of origination to the city
2634	2634	8 of final destination on the same aircraft, without regard
2635	2635	9 to a change in the flight number of that aircraft.
2636	2636	10 (23) A transaction in which the purchase order is
2637	2637	11 received by a florist who is located outside Illinois, but
2638	2638	12 who has a florist located in Illinois deliver the property
2639	2639	13 to the purchaser or the purchaser's donee in Illinois.
2640	2640	14 (24) Fuel consumed or used in the operation of ships,
2641	2641	15 barges, or vessels that are used primarily in or for the
2642	2642	16 transportation of property or the conveyance of persons
2643	2643	17 for hire on rivers bordering on this State if the fuel is
2644	2644	18 delivered by the seller to the purchaser's barge, ship, or
2645	2645	19 vessel while it is afloat upon that bordering river.
2646	2646	20 (25) Except as provided in item (25-5) of this
2647	2647	21 Section, a motor vehicle sold in this State to a
2648	2648	22 nonresident even though the motor vehicle is delivered to
2649	2649	23 the nonresident in this State, if the motor vehicle is not
2650	2650	24 to be titled in this State, and if a drive-away permit is
2651	2651	25 issued to the motor vehicle as provided in Section 3-603
2652	2652	26 of the Illinois Vehicle Code or if the nonresident
2653	2653
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658	SB3128 - 73 - LRB103 38386 HLH 68521 b
2659	2659
2660	2660
2661	2661	SB3128- 74 -LRB103 38386 HLH 68521 b SB3128 - 74 - LRB103 38386 HLH 68521 b
2662	2662	SB3128 - 74 - LRB103 38386 HLH 68521 b
2663	2663	1 purchaser has vehicle registration plates to transfer to
2664	2664	2 the motor vehicle upon returning to his or her home state.
2665	2665	3 The issuance of the drive-away permit or having the
2666	2666	4 out-of-state registration plates to be transferred is
2667	2667	5 prima facie evidence that the motor vehicle will not be
2668	2668	6 titled in this State.
2669	2669	7 (25-5) The exemption under item (25) does not apply if
2670	2670	8 the state in which the motor vehicle will be titled does
2671	2671	9 not allow a reciprocal exemption for a motor vehicle sold
2672	2672	10 and delivered in that state to an Illinois resident but
2673	2673	11 titled in Illinois. The tax collected under this Act on
2674	2674	12 the sale of a motor vehicle in this State to a resident of
2675	2675	13 another state that does not allow a reciprocal exemption
2676	2676	14 shall be imposed at a rate equal to the state's rate of tax
2677	2677	15 on taxable property in the state in which the purchaser is
2678	2678	16 a resident, except that the tax shall not exceed the tax
2679	2679	17 that would otherwise be imposed under this Act. At the
2680	2680	18 time of the sale, the purchaser shall execute a statement,
2681	2681	19 signed under penalty of perjury, of his or her intent to
2682	2682	20 title the vehicle in the state in which the purchaser is a
2683	2683	21 resident within 30 days after the sale and of the fact of
2684	2684	22 the payment to the State of Illinois of tax in an amount
2685	2685	23 equivalent to the state's rate of tax on taxable property
2686	2686	24 in his or her state of residence and shall submit the
2687	2687	25 statement to the appropriate tax collection agency in his
2688	2688	26 or her state of residence. In addition, the retailer must
2689	2689
2690	2690
2691	2691
2692	2692
2693	2693
2694	2694	SB3128 - 74 - LRB103 38386 HLH 68521 b
2695	2695
2696	2696
2697	2697	SB3128- 75 -LRB103 38386 HLH 68521 b SB3128 - 75 - LRB103 38386 HLH 68521 b
2698	2698	SB3128 - 75 - LRB103 38386 HLH 68521 b
2699	2699	1 retain a signed copy of the statement in his or her
2700	2700	2 records. Nothing in this item shall be construed to
2701	2701	3 require the removal of the vehicle from this state
2702	2702	4 following the filing of an intent to title the vehicle in
2703	2703	5 the purchaser's state of residence if the purchaser titles
2704	2704	6 the vehicle in his or her state of residence within 30 days
2705	2705	7 after the date of sale. The tax collected under this Act in
2706	2706	8 accordance with this item (25-5) shall be proportionately
2707	2707	9 distributed as if the tax were collected at the 6.25%
2708	2708	10 general rate imposed under this Act.
2709	2709	11 (25-7) Beginning on July 1, 2007, no tax is imposed
2710	2710	12 under this Act on the sale of an aircraft, as defined in
2711	2711	13 Section 3 of the Illinois Aeronautics Act, if all of the
2712	2712	14 following conditions are met:
2713	2713	15 (1) the aircraft leaves this State within 15 days
2714	2714	16 after the later of either the issuance of the final
2715	2715	17 billing for the sale of the aircraft, or the
2716	2716	18 authorized approval for return to service, completion
2717	2717	19 of the maintenance record entry, and completion of the
2718	2718	20 test flight and ground test for inspection, as
2719	2719	21 required by 14 CFR 91.407;
2720	2720	22 (2) the aircraft is not based or registered in
2721	2721	23 this State after the sale of the aircraft; and
2722	2722	24 (3) the seller retains in his or her books and
2723	2723	25 records and provides to the Department a signed and
2724	2724	26 dated certification from the purchaser, on a form
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730	SB3128 - 75 - LRB103 38386 HLH 68521 b
2731	2731
2732	2732
2733	2733	SB3128- 76 -LRB103 38386 HLH 68521 b SB3128 - 76 - LRB103 38386 HLH 68521 b
2734	2734	SB3128 - 76 - LRB103 38386 HLH 68521 b
2735	2735	1 prescribed by the Department, certifying that the
2736	2736	2 requirements of this item (25-7) are met. The
2737	2737	3 certificate must also include the name and address of
2738	2738	4 the purchaser, the address of the location where the
2739	2739	5 aircraft is to be titled or registered, the address of
2740	2740	6 the primary physical location of the aircraft, and
2741	2741	7 other information that the Department may reasonably
2742	2742	8 require.
2743	2743	9 For purposes of this item (25-7):
2744	2744	10 "Based in this State" means hangared, stored, or
2745	2745	11 otherwise used, excluding post-sale customizations as
2746	2746	12 defined in this Section, for 10 or more days in each
2747	2747	13 12-month period immediately following the date of the sale
2748	2748	14 of the aircraft.
2749	2749	15 "Registered in this State" means an aircraft
2750	2750	16 registered with the Department of Transportation,
2751	2751	17 Aeronautics Division, or titled or registered with the
2752	2752	18 Federal Aviation Administration to an address located in
2753	2753	19 this State.
2754	2754	20 This paragraph (25-7) is exempt from the provisions of
2755	2755	21 Section 2-70.
2756	2756	22 (26) Semen used for artificial insemination of
2757	2757	23 livestock for direct agricultural production.
2758	2758	24 (27) Horses, or interests in horses, registered with
2759	2759	25 and meeting the requirements of any of the Arabian Horse
2760	2760	26 Club Registry of America, Appaloosa Horse Club, American
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766	SB3128 - 76 - LRB103 38386 HLH 68521 b
2767	2767
2768	2768
2769	2769	SB3128- 77 -LRB103 38386 HLH 68521 b SB3128 - 77 - LRB103 38386 HLH 68521 b
2770	2770	SB3128 - 77 - LRB103 38386 HLH 68521 b
2771	2771	1 Quarter Horse Association, United States Trotting
2772	2772	2 Association, or Jockey Club, as appropriate, used for
2773	2773	3 purposes of breeding or racing for prizes. This item (27)
2774	2774	4 is exempt from the provisions of Section 2-70, and the
2775	2775	5 exemption provided for under this item (27) applies for
2776	2776	6 all periods beginning May 30, 1995, but no claim for
2777	2777	7 credit or refund is allowed on or after January 1, 2008
2778	2778	8 (the effective date of Public Act 95-88) for such taxes
2779	2779	9 paid during the period beginning May 30, 2000 and ending
2780	2780	10 on January 1, 2008 (the effective date of Public Act
2781	2781	11 95-88).
2782	2782	12 (28) Computers and communications equipment utilized
2783	2783	13 for any hospital purpose and equipment used in the
2784	2784	14 diagnosis, analysis, or treatment of hospital patients
2785	2785	15 sold to a lessor who leases the equipment, under a lease of
2786	2786	16 one year or longer executed or in effect at the time of the
2787	2787	17 purchase, to a hospital that has been issued an active tax
2788	2788	18 exemption identification number by the Department under
2789	2789	19 Section 1g of this Act.
2790	2790	20 (29) Personal property sold to a lessor who leases the
2791	2791	21 property, under a lease of one year or longer executed or
2792	2792	22 in effect at the time of the purchase, to a governmental
2793	2793	23 body that has been issued an active tax exemption
2794	2794	24 identification number by the Department under Section 1g
2795	2795	25 of this Act.
2796	2796	26 (30) Beginning with taxable years ending on or after
2797	2797
2798	2798
2799	2799
2800	2800
2801	2801
2802	2802	SB3128 - 77 - LRB103 38386 HLH 68521 b
2803	2803
2804	2804
2805	2805	SB3128- 78 -LRB103 38386 HLH 68521 b SB3128 - 78 - LRB103 38386 HLH 68521 b
2806	2806	SB3128 - 78 - LRB103 38386 HLH 68521 b
2807	2807	1 December 31, 1995 and ending with taxable years ending on
2808	2808	2 or before December 31, 2004, personal property that is
2809	2809	3 donated for disaster relief to be used in a State or
2810	2810	4 federally declared disaster area in Illinois or bordering
2811	2811	5 Illinois by a manufacturer or retailer that is registered
2812	2812	6 in this State to a corporation, society, association,
2813	2813	7 foundation, or institution that has been issued a sales
2814	2814	8 tax exemption identification number by the Department that
2815	2815	9 assists victims of the disaster who reside within the
2816	2816	10 declared disaster area.
2817	2817	11 (31) Beginning with taxable years ending on or after
2818	2818	12 December 31, 1995 and ending with taxable years ending on
2819	2819	13 or before December 31, 2004, personal property that is
2820	2820	14 used in the performance of infrastructure repairs in this
2821	2821	15 State, including, but not limited to, municipal roads and
2822	2822	16 streets, access roads, bridges, sidewalks, waste disposal
2823	2823	17 systems, water and sewer line extensions, water
2824	2824	18 distribution and purification facilities, storm water
2825	2825	19 drainage and retention facilities, and sewage treatment
2826	2826	20 facilities, resulting from a State or federally declared
2827	2827	21 disaster in Illinois or bordering Illinois when such
2828	2828	22 repairs are initiated on facilities located in the
2829	2829	23 declared disaster area within 6 months after the disaster.
2830	2830	24 (32) Beginning July 1, 1999, game or game birds sold
2831	2831	25 at a "game breeding and hunting preserve area" as that
2832	2832	26 term is used in the Wildlife Code. This paragraph is
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837
2838	2838	SB3128 - 78 - LRB103 38386 HLH 68521 b
2839	2839
2840	2840
2841	2841	SB3128- 79 -LRB103 38386 HLH 68521 b SB3128 - 79 - LRB103 38386 HLH 68521 b
2842	2842	SB3128 - 79 - LRB103 38386 HLH 68521 b
2843	2843	1 exempt from the provisions of Section 2-70.
2844	2844	2 (33) A motor vehicle, as that term is defined in
2845	2845	3 Section 1-146 of the Illinois Vehicle Code, that is
2846	2846	4 donated to a corporation, limited liability company,
2847	2847	5 society, association, foundation, or institution that is
2848	2848	6 determined by the Department to be organized and operated
2849	2849	7 exclusively for educational purposes. For purposes of this
2850	2850	8 exemption, "a corporation, limited liability company,
2851	2851	9 society, association, foundation, or institution organized
2852	2852	10 and operated exclusively for educational purposes" means
2853	2853	11 all tax-supported public schools, private schools that
2854	2854	12 offer systematic instruction in useful branches of
2855	2855	13 learning by methods common to public schools and that
2856	2856	14 compare favorably in their scope and intensity with the
2857	2857	15 course of study presented in tax-supported schools, and
2858	2858	16 vocational or technical schools or institutes organized
2859	2859	17 and operated exclusively to provide a course of study of
2860	2860	18 not less than 6 weeks duration and designed to prepare
2861	2861	19 individuals to follow a trade or to pursue a manual,
2862	2862	20 technical, mechanical, industrial, business, or commercial
2863	2863	21 occupation.
2864	2864	22 (34) Beginning January 1, 2000, personal property,
2865	2865	23 including food, purchased through fundraising events for
2866	2866	24 the benefit of a public or private elementary or secondary
2867	2867	25 school, a group of those schools, or one or more school
2868	2868	26 districts if the events are sponsored by an entity
2869	2869
2870	2870
2871	2871
2872	2872
2873	2873
2874	2874	SB3128 - 79 - LRB103 38386 HLH 68521 b
2875	2875
2876	2876
2877	2877	SB3128- 80 -LRB103 38386 HLH 68521 b SB3128 - 80 - LRB103 38386 HLH 68521 b
2878	2878	SB3128 - 80 - LRB103 38386 HLH 68521 b
2879	2879	1 recognized by the school district that consists primarily
2880	2880	2 of volunteers and includes parents and teachers of the
2881	2881	3 school children. This paragraph does not apply to
2882	2882	4 fundraising events (i) for the benefit of private home
2883	2883	5 instruction or (ii) for which the fundraising entity
2884	2884	6 purchases the personal property sold at the events from
2885	2885	7 another individual or entity that sold the property for
2886	2886	8 the purpose of resale by the fundraising entity and that
2887	2887	9 profits from the sale to the fundraising entity. This
2888	2888	10 paragraph is exempt from the provisions of Section 2-70.
2889	2889	11 (35) Beginning January 1, 2000 and through December
2890	2890	12 31, 2001, new or used automatic vending machines that
2891	2891	13 prepare and serve hot food and beverages, including
2892	2892	14 coffee, soup, and other items, and replacement parts for
2893	2893	15 these machines. Beginning January 1, 2002 and through June
2894	2894	16 30, 2003, machines and parts for machines used in
2895	2895	17 commercial, coin-operated amusement and vending business
2896	2896	18 if a use or occupation tax is paid on the gross receipts
2897	2897	19 derived from the use of the commercial, coin-operated
2898	2898	20 amusement and vending machines. This paragraph is exempt
2899	2899	21 from the provisions of Section 2-70.
2900	2900	22 (35-5) Beginning August 23, 2001 and through June 30,
2901	2901	23 2016, food for human consumption that is to be consumed
2902	2902	24 off the premises where it is sold (other than alcoholic
2903	2903	25 beverages, soft drinks, and food that has been prepared
2904	2904	26 for immediate consumption) and prescription and
2905	2905
2906	2906
2907	2907
2908	2908
2909	2909
2910	2910	SB3128 - 80 - LRB103 38386 HLH 68521 b
2911	2911
2912	2912
2913	2913	SB3128- 81 -LRB103 38386 HLH 68521 b SB3128 - 81 - LRB103 38386 HLH 68521 b
2914	2914	SB3128 - 81 - LRB103 38386 HLH 68521 b
2915	2915	1 nonprescription medicines, drugs, medical appliances, and
2916	2916	2 insulin, urine testing materials, syringes, and needles
2917	2917	3 used by diabetics, for human use, when purchased for use
2918	2918	4 by a person receiving medical assistance under Article V
2919	2919	5 of the Illinois Public Aid Code who resides in a licensed
2920	2920	6 long-term care facility, as defined in the Nursing Home
2921	2921	7 Care Act, or a licensed facility as defined in the ID/DD
2922	2922	8 Community Care Act, the MC/DD Act, or the Specialized
2923	2923	9 Mental Health Rehabilitation Act of 2013.
2924	2924	10 (36) Beginning August 2, 2001, computers and
2925	2925	11 communications equipment utilized for any hospital purpose
2926	2926	12 and equipment used in the diagnosis, analysis, or
2927	2927	13 treatment of hospital patients sold to a lessor who leases
2928	2928	14 the equipment, under a lease of one year or longer
2929	2929	15 executed or in effect at the time of the purchase, to a
2930	2930	16 hospital that has been issued an active tax exemption
2931	2931	17 identification number by the Department under Section 1g
2932	2932	18 of this Act. This paragraph is exempt from the provisions
2933	2933	19 of Section 2-70.
2934	2934	20 (37) Beginning August 2, 2001, personal property sold
2935	2935	21 to a lessor who leases the property, under a lease of one
2936	2936	22 year or longer executed or in effect at the time of the
2937	2937	23 purchase, to a governmental body that has been issued an
2938	2938	24 active tax exemption identification number by the
2939	2939	25 Department under Section 1g of this Act. This paragraph is
2940	2940	26 exempt from the provisions of Section 2-70.
2941	2941
2942	2942
2943	2943
2944	2944
2945	2945
2946	2946	SB3128 - 81 - LRB103 38386 HLH 68521 b
2947	2947
2948	2948
2949	2949	SB3128- 82 -LRB103 38386 HLH 68521 b SB3128 - 82 - LRB103 38386 HLH 68521 b
2950	2950	SB3128 - 82 - LRB103 38386 HLH 68521 b
2951	2951	1 (38) Beginning on January 1, 2002 and through June 30,
2952	2952	2 2016, tangible personal property purchased from an
2953	2953	3 Illinois retailer by a taxpayer engaged in centralized
2954	2954	4 purchasing activities in Illinois who will, upon receipt
2955	2955	5 of the property in Illinois, temporarily store the
2956	2956	6 property in Illinois (i) for the purpose of subsequently
2957	2957	7 transporting it outside this State for use or consumption
2958	2958	8 thereafter solely outside this State or (ii) for the
2959	2959	9 purpose of being processed, fabricated, or manufactured
2960	2960	10 into, attached to, or incorporated into other tangible
2961	2961	11 personal property to be transported outside this State and
2962	2962	12 thereafter used or consumed solely outside this State. The
2963	2963	13 Director of Revenue shall, pursuant to rules adopted in
2964	2964	14 accordance with the Illinois Administrative Procedure Act,
2965	2965	15 issue a permit to any taxpayer in good standing with the
2966	2966	16 Department who is eligible for the exemption under this
2967	2967	17 paragraph (38). The permit issued under this paragraph
2968	2968	18 (38) shall authorize the holder, to the extent and in the
2969	2969	19 manner specified in the rules adopted under this Act, to
2970	2970	20 purchase tangible personal property from a retailer exempt
2971	2971	21 from the taxes imposed by this Act. Taxpayers shall
2972	2972	22 maintain all necessary books and records to substantiate
2973	2973	23 the use and consumption of all such tangible personal
2974	2974	24 property outside of the State of Illinois.
2975	2975	25 (39) Beginning January 1, 2008, tangible personal
2976	2976	26 property used in the construction or maintenance of a
2977	2977
2978	2978
2979	2979
2980	2980
2981	2981
2982	2982	SB3128 - 82 - LRB103 38386 HLH 68521 b
2983	2983
2984	2984
2985	2985	SB3128- 83 -LRB103 38386 HLH 68521 b SB3128 - 83 - LRB103 38386 HLH 68521 b
2986	2986	SB3128 - 83 - LRB103 38386 HLH 68521 b
2987	2987	1 community water supply, as defined under Section 3.145 of
2988	2988	2 the Environmental Protection Act, that is operated by a
2989	2989	3 not-for-profit corporation that holds a valid water supply
2990	2990	4 permit issued under Title IV of the Environmental
2991	2991	5 Protection Act. This paragraph is exempt from the
2992	2992	6 provisions of Section 2-70.
2993	2993	7 (40) Beginning January 1, 2010 and continuing through
2994	2994	8 December 31, 2029, materials, parts, equipment,
2995	2995	9 components, and furnishings incorporated into or upon an
2996	2996	10 aircraft as part of the modification, refurbishment,
2997	2997	11 completion, replacement, repair, or maintenance of the
2998	2998	12 aircraft. This exemption includes consumable supplies used
2999	2999	13 in the modification, refurbishment, completion,
3000	3000	14 replacement, repair, and maintenance of aircraft. However,
3001	3001	15 until January 1, 2024, this exemption excludes any
3002	3002	16 materials, parts, equipment, components, and consumable
3003	3003	17 supplies used in the modification, replacement, repair,
3004	3004	18 and maintenance of aircraft engines or power plants,
3005	3005	19 whether such engines or power plants are installed or
3006	3006	20 uninstalled upon any such aircraft. "Consumable supplies"
3007	3007	21 include, but are not limited to, adhesive, tape,
3008	3008	22 sandpaper, general purpose lubricants, cleaning solution,
3009	3009	23 latex gloves, and protective films.
3010	3010	24 Beginning January 1, 2010 and continuing through
3011	3011	25 December 31, 2023, this exemption applies only to the sale
3012	3012	26 of qualifying tangible personal property to persons who
3013	3013
3014	3014
3015	3015
3016	3016
3017	3017
3018	3018	SB3128 - 83 - LRB103 38386 HLH 68521 b
3019	3019
3020	3020
3021	3021	SB3128- 84 -LRB103 38386 HLH 68521 b SB3128 - 84 - LRB103 38386 HLH 68521 b
3022	3022	SB3128 - 84 - LRB103 38386 HLH 68521 b
3023	3023	1 modify, refurbish, complete, replace, or maintain an
3024	3024	2 aircraft and who (i) hold an Air Agency Certificate and
3025	3025	3 are empowered to operate an approved repair station by the
3026	3026	4 Federal Aviation Administration, (ii) have a Class IV
3027	3027	5 Rating, and (iii) conduct operations in accordance with
3028	3028	6 Part 145 of the Federal Aviation Regulations. The
3029	3029	7 exemption does not include aircraft operated by a
3030	3030	8 commercial air carrier providing scheduled passenger air
3031	3031	9 service pursuant to authority issued under Part 121 or
3032	3032	10 Part 129 of the Federal Aviation Regulations. From January
3033	3033	11 1, 2024 through December 31, 2029, this exemption applies
3034	3034	12 only to the use of qualifying tangible personal property
3035	3035	13 by: (A) persons who modify, refurbish, complete, repair,
3036	3036	14 replace, or maintain aircraft and who (i) hold an Air
3037	3037	15 Agency Certificate and are empowered to operate an
3038	3038	16 approved repair station by the Federal Aviation
3039	3039	17 Administration, (ii) have a Class IV Rating, and (iii)
3040	3040	18 conduct operations in accordance with Part 145 of the
3041	3041	19 Federal Aviation Regulations; and (B) persons who engage
3042	3042	20 in the modification, replacement, repair, and maintenance
3043	3043	21 of aircraft engines or power plants without regard to
3044	3044	22 whether or not those persons meet the qualifications of
3045	3045	23 item (A).
3046	3046	24 The changes made to this paragraph (40) by Public Act
3047	3047	25 98-534 are declarative of existing law. It is the intent
3048	3048	26 of the General Assembly that the exemption under this
3049	3049
3050	3050
3051	3051
3052	3052
3053	3053
3054	3054	SB3128 - 84 - LRB103 38386 HLH 68521 b
3055	3055
3056	3056
3057	3057	SB3128- 85 -LRB103 38386 HLH 68521 b SB3128 - 85 - LRB103 38386 HLH 68521 b
3058	3058	SB3128 - 85 - LRB103 38386 HLH 68521 b
3059	3059	1 paragraph (40) applies continuously from January 1, 2010
3060	3060	2 through December 31, 2024; however, no claim for credit or
3061	3061	3 refund is allowed for taxes paid as a result of the
3062	3062	4 disallowance of this exemption on or after January 1, 2015
3063	3063	5 and prior to February 5, 2020 (the effective date of
3064	3064	6 Public Act 101-629).
3065	3065	7 (41) Tangible personal property sold to a
3066	3066	8 public-facilities corporation, as described in Section
3067	3067	9 11-65-10 of the Illinois Municipal Code, for purposes of
3068	3068	10 constructing or furnishing a municipal convention hall,
3069	3069	11 but only if the legal title to the municipal convention
3070	3070	12 hall is transferred to the municipality without any
3071	3071	13 further consideration by or on behalf of the municipality
3072	3072	14 at the time of the completion of the municipal convention
3073	3073	15 hall or upon the retirement or redemption of any bonds or
3074	3074	16 other debt instruments issued by the public-facilities
3075	3075	17 corporation in connection with the development of the
3076	3076	18 municipal convention hall. This exemption includes
3077	3077	19 existing public-facilities corporations as provided in
3078	3078	20 Section 11-65-25 of the Illinois Municipal Code. This
3079	3079	21 paragraph is exempt from the provisions of Section 2-70.
3080	3080	22 (42) Beginning January 1, 2017 and through December
3081	3081	23 31, 2026, menstrual pads, tampons, and menstrual cups.
3082	3082	24 (43) Merchandise that is subject to the Rental
3083	3083	25 Purchase Agreement Occupation and Use Tax. The purchaser
3084	3084	26 must certify that the item is purchased to be rented
3085	3085
3086	3086
3087	3087
3088	3088
3089	3089
3090	3090	SB3128 - 85 - LRB103 38386 HLH 68521 b
3091	3091
3092	3092
3093	3093	SB3128- 86 -LRB103 38386 HLH 68521 b SB3128 - 86 - LRB103 38386 HLH 68521 b
3094	3094	SB3128 - 86 - LRB103 38386 HLH 68521 b
3095	3095	1 subject to a rental-purchase rental purchase agreement, as
3096	3096	2 defined in the Rental-Purchase Rental Purchase Agreement
3097	3097	3 Act, and provide proof of registration under the Rental
3098	3098	4 Purchase Agreement Occupation and Use Tax Act. This
3099	3099	5 paragraph is exempt from the provisions of Section 2-70.
3100	3100	6 (44) Qualified tangible personal property used in the
3101	3101	7 construction or operation of a data center that has been
3102	3102	8 granted a certificate of exemption by the Department of
3103	3103	9 Commerce and Economic Opportunity, whether that tangible
3104	3104	10 personal property is purchased by the owner, operator, or
3105	3105	11 tenant of the data center or by a contractor or
3106	3106	12 subcontractor of the owner, operator, or tenant. Data
3107	3107	13 centers that would have qualified for a certificate of
3108	3108	14 exemption prior to January 1, 2020 had Public Act 101-31
3109	3109	15 been in effect, may apply for and obtain an exemption for
3110	3110	16 subsequent purchases of computer equipment or enabling
3111	3111	17 software purchased or leased to upgrade, supplement, or
3112	3112	18 replace computer equipment or enabling software purchased
3113	3113	19 or leased in the original investment that would have
3114	3114	20 qualified.
3115	3115	21 The Department of Commerce and Economic Opportunity
3116	3116	22 shall grant a certificate of exemption under this item
3117	3117	23 (44) to qualified data centers as defined by Section
3118	3118	24 605-1025 of the Department of Commerce and Economic
3119	3119	25 Opportunity Law of the Civil Administrative Code of
3120	3120	26 Illinois.
3121	3121
3122	3122
3123	3123
3124	3124
3125	3125
3126	3126	SB3128 - 86 - LRB103 38386 HLH 68521 b
3127	3127
3128	3128
3129	3129	SB3128- 87 -LRB103 38386 HLH 68521 b SB3128 - 87 - LRB103 38386 HLH 68521 b
3130	3130	SB3128 - 87 - LRB103 38386 HLH 68521 b
3131	3131	1 For the purposes of this item (44):
3132	3132	2 "Data center" means a building or a series of
3133	3133	3 buildings rehabilitated or constructed to house
3134	3134	4 working servers in one physical location or multiple
3135	3135	5 sites within the State of Illinois.
3136	3136	6 "Qualified tangible personal property" means:
3137	3137	7 electrical systems and equipment; climate control and
3138	3138	8 chilling equipment and systems; mechanical systems and
3139	3139	9 equipment; monitoring and secure systems; emergency
3140	3140	10 generators; hardware; computers; servers; data storage
3141	3141	11 devices; network connectivity equipment; racks;
3142	3142	12 cabinets; telecommunications cabling infrastructure;
3143	3143	13 raised floor systems; peripheral components or
3144	3144	14 systems; software; mechanical, electrical, or plumbing
3145	3145	15 systems; battery systems; cooling systems and towers;
3146	3146	16 temperature control systems; other cabling; and other
3147	3147	17 data center infrastructure equipment and systems
3148	3148	18 necessary to operate qualified tangible personal
3149	3149	19 property, including fixtures; and component parts of
3150	3150	20 any of the foregoing, including installation,
3151	3151	21 maintenance, repair, refurbishment, and replacement of
3152	3152	22 qualified tangible personal property to generate,
3153	3153	23 transform, transmit, distribute, or manage electricity
3154	3154	24 necessary to operate qualified tangible personal
3155	3155	25 property; and all other tangible personal property
3156	3156	26 that is essential to the operations of a computer data
3157	3157
3158	3158
3159	3159
3160	3160
3161	3161
3162	3162	SB3128 - 87 - LRB103 38386 HLH 68521 b
3163	3163
3164	3164
3165	3165	SB3128- 88 -LRB103 38386 HLH 68521 b SB3128 - 88 - LRB103 38386 HLH 68521 b
3166	3166	SB3128 - 88 - LRB103 38386 HLH 68521 b
3167	3167	1 center. The term "qualified tangible personal
3168	3168	2 property" also includes building materials physically
3169	3169	3 incorporated into the qualifying data center. To
3170	3170	4 document the exemption allowed under this Section, the
3171	3171	5 retailer must obtain from the purchaser a copy of the
3172	3172	6 certificate of eligibility issued by the Department of
3173	3173	7 Commerce and Economic Opportunity.
3174	3174	8 This item (44) is exempt from the provisions of
3175	3175	9 Section 2-70.
3176	3176	10 (45) Beginning January 1, 2020 and through December
3177	3177	11 31, 2020, sales of tangible personal property made by a
3178	3178	12 marketplace seller over a marketplace for which tax is due
3179	3179	13 under this Act but for which use tax has been collected and
3180	3180	14 remitted to the Department by a marketplace facilitator
3181	3181	15 under Section 2d of the Use Tax Act are exempt from tax
3182	3182	16 under this Act. A marketplace seller claiming this
3183	3183	17 exemption shall maintain books and records demonstrating
3184	3184	18 that the use tax on such sales has been collected and
3185	3185	19 remitted by a marketplace facilitator. Marketplace sellers
3186	3186	20 that have properly remitted tax under this Act on such
3187	3187	21 sales may file a claim for credit as provided in Section 6
3188	3188	22 of this Act. No claim is allowed, however, for such taxes
3189	3189	23 for which a credit or refund has been issued to the
3190	3190	24 marketplace facilitator under the Use Tax Act, or for
3191	3191	25 which the marketplace facilitator has filed a claim for
3192	3192	26 credit or refund under the Use Tax Act.
3193	3193
3194	3194
3195	3195
3196	3196
3197	3197
3198	3198	SB3128 - 88 - LRB103 38386 HLH 68521 b
3199	3199
3200	3200
3201	3201	SB3128- 89 -LRB103 38386 HLH 68521 b SB3128 - 89 - LRB103 38386 HLH 68521 b
3202	3202	SB3128 - 89 - LRB103 38386 HLH 68521 b
3203	3203	1 (46) Beginning July 1, 2022, breast pumps, breast pump
3204	3204	2 collection and storage supplies, and breast pump kits.
3205	3205	3 This item (46) is exempt from the provisions of Section
3206	3206	4 2-70. As used in this item (46):
3207	3207	5 "Breast pump" means an electrically controlled or
3208	3208	6 manually controlled pump device designed or marketed to be
3209	3209	7 used to express milk from a human breast during lactation,
3210	3210	8 including the pump device and any battery, AC adapter, or
3211	3211	9 other power supply unit that is used to power the pump
3212	3212	10 device and is packaged and sold with the pump device at the
3213	3213	11 time of sale.
3214	3214	12 "Breast pump collection and storage supplies" means
3215	3215	13 items of tangible personal property designed or marketed
3216	3216	14 to be used in conjunction with a breast pump to collect
3217	3217	15 milk expressed from a human breast and to store collected
3218	3218	16 milk until it is ready for consumption.
3219	3219	17 "Breast pump collection and storage supplies"
3220	3220	18 includes, but is not limited to: breast shields and breast
3221	3221	19 shield connectors; breast pump tubes and tubing adapters;
3222	3222	20 breast pump valves and membranes; backflow protectors and
3223	3223	21 backflow protector adaptors; bottles and bottle caps
3224	3224	22 specific to the operation of the breast pump; and breast
3225	3225	23 milk storage bags.
3226	3226	24 "Breast pump collection and storage supplies" does not
3227	3227	25 include: (1) bottles and bottle caps not specific to the
3228	3228	26 operation of the breast pump; (2) breast pump travel bags
3229	3229
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234	SB3128 - 89 - LRB103 38386 HLH 68521 b
3235	3235
3236	3236
3237	3237	SB3128- 90 -LRB103 38386 HLH 68521 b SB3128 - 90 - LRB103 38386 HLH 68521 b
3238	3238	SB3128 - 90 - LRB103 38386 HLH 68521 b
3239	3239	1 and other similar carrying accessories, including ice
3240	3240	2 packs, labels, and other similar products; (3) breast pump
3241	3241	3 cleaning supplies; (4) nursing bras, bra pads, breast
3242	3242	4 shells, and other similar products; and (5) creams,
3243	3243	5 ointments, and other similar products that relieve
3244	3244	6 breastfeeding-related symptoms or conditions of the
3245	3245	7 breasts or nipples, unless sold as part of a breast pump
3246	3246	8 kit that is pre-packaged by the breast pump manufacturer
3247	3247	9 or distributor.
3248	3248	10 "Breast pump kit" means a kit that: (1) contains no
3249	3249	11 more than a breast pump, breast pump collection and
3250	3250	12 storage supplies, a rechargeable battery for operating the
3251	3251	13 breast pump, a breastmilk cooler, bottle stands, ice
3252	3252	14 packs, and a breast pump carrying case; and (2) is
3253	3253	15 pre-packaged as a breast pump kit by the breast pump
3254	3254	16 manufacturer or distributor.
3255	3255	17 (47) Tangible personal property sold by or on behalf
3256	3256	18 of the State Treasurer pursuant to the Revised Uniform
3257	3257	19 Unclaimed Property Act. This item (47) is exempt from the
3258	3258	20 provisions of Section 2-70.
3259	3259	21 (48) Beginning on January 1, 2024, tangible personal
3260	3260	22 property purchased by an active duty member of the armed
3261	3261	23 forces of the United States who presents valid military
3262	3262	24 identification and purchases the property using a form of
3263	3263	25 payment where the federal government is the payor. The
3264	3264	26 member of the armed forces must complete, at the point of
3265	3265
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270	SB3128 - 90 - LRB103 38386 HLH 68521 b
3271	3271
3272	3272
3273	3273	SB3128- 91 -LRB103 38386 HLH 68521 b SB3128 - 91 - LRB103 38386 HLH 68521 b
3274	3274	SB3128 - 91 - LRB103 38386 HLH 68521 b
3275	3275
3276	3276
3277	3277
3278	3278
3279	3279
3280	3280	SB3128 - 91 - LRB103 38386 HLH 68521 b