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Illinois Senate Bill SB3426

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3426 Compare Versions

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1-Public Act 103-0995
21 SB3426 EnrolledLRB103 37529 HLH 67652 b SB3426 Enrolled LRB103 37529 HLH 67652 b
32 SB3426 Enrolled LRB103 37529 HLH 67652 b
4-AN ACT concerning revenue.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Service Use Tax Act is amended by changing
8-Section 3-5 as follows:
9-(35 ILCS 110/3-5)
10-Sec. 3-5. Exemptions. Use of the following tangible
11-personal property is exempt from the tax imposed by this Act:
12-(1) Personal property purchased from a corporation,
13-society, association, foundation, institution, or
14-organization, other than a limited liability company, that is
15-organized and operated as a not-for-profit service enterprise
16-for the benefit of persons 65 years of age or older if the
17-personal property was not purchased by the enterprise for the
18-purpose of resale by the enterprise.
19-(2) Personal property purchased by a non-profit Illinois
20-county fair association for use in conducting, operating, or
21-promoting the county fair.
22-(3) Personal property purchased by a not-for-profit arts
23-or cultural organization that establishes, by proof required
24-by the Department by rule, that it has received an exemption
25-under Section 501(c)(3) of the Internal Revenue Code and that
26-is organized and operated primarily for the presentation or
3+1 AN ACT concerning revenue.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Service Use Tax Act is amended by changing
7+5 Section 3-5 as follows:
8+6 (35 ILCS 110/3-5)
9+7 Sec. 3-5. Exemptions. Use of the following tangible
10+8 personal property is exempt from the tax imposed by this Act:
11+9 (1) Personal property purchased from a corporation,
12+10 society, association, foundation, institution, or
13+11 organization, other than a limited liability company, that is
14+12 organized and operated as a not-for-profit service enterprise
15+13 for the benefit of persons 65 years of age or older if the
16+14 personal property was not purchased by the enterprise for the
17+15 purpose of resale by the enterprise.
18+16 (2) Personal property purchased by a non-profit Illinois
19+17 county fair association for use in conducting, operating, or
20+18 promoting the county fair.
21+19 (3) Personal property purchased by a not-for-profit arts
22+20 or cultural organization that establishes, by proof required
23+21 by the Department by rule, that it has received an exemption
24+22 under Section 501(c)(3) of the Internal Revenue Code and that
25+23 is organized and operated primarily for the presentation or
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33-support of arts or cultural programming, activities, or
34-services. These organizations include, but are not limited to,
35-music and dramatic arts organizations such as symphony
36-orchestras and theatrical groups, arts and cultural service
37-organizations, local arts councils, visual arts organizations,
38-and media arts organizations. On and after July 1, 2001 (the
39-effective date of Public Act 92-35), however, an entity
40-otherwise eligible for this exemption shall not make tax-free
41-purchases unless it has an active identification number issued
42-by the Department.
43-(4) Legal tender, currency, medallions, or gold or silver
44-coinage issued by the State of Illinois, the government of the
45-United States of America, or the government of any foreign
46-country, and bullion.
47-(5) Until July 1, 2003 and beginning again on September 1,
48-2004 through August 30, 2014, graphic arts machinery and
49-equipment, including repair and replacement parts, both new
50-and used, and including that manufactured on special order or
51-purchased for lease, certified by the purchaser to be used
52-primarily for graphic arts production. Equipment includes
53-chemicals or chemicals acting as catalysts but only if the
54-chemicals or chemicals acting as catalysts effect a direct and
55-immediate change upon a graphic arts product. Beginning on
56-July 1, 2017, graphic arts machinery and equipment is included
57-in the manufacturing and assembling machinery and equipment
58-exemption under Section 2 of this Act.
59-
60-
61-(6) Personal property purchased from a teacher-sponsored
62-student organization affiliated with an elementary or
63-secondary school located in Illinois.
64-(7) Farm machinery and equipment, both new and used,
65-including that manufactured on special order, certified by the
66-purchaser to be used primarily for production agriculture or
67-State or federal agricultural programs, including individual
68-replacement parts for the machinery and equipment, including
69-machinery and equipment purchased for lease, and including
70-implements of husbandry defined in Section 1-130 of the
71-Illinois Vehicle Code, farm machinery and agricultural
72-chemical and fertilizer spreaders, and nurse wagons required
73-to be registered under Section 3-809 of the Illinois Vehicle
74-Code, but excluding other motor vehicles required to be
75-registered under the Illinois Vehicle Code. Horticultural
76-polyhouses or hoop houses used for propagating, growing, or
77-overwintering plants shall be considered farm machinery and
78-equipment under this item (7). Agricultural chemical tender
79-tanks and dry boxes shall include units sold separately from a
80-motor vehicle required to be licensed and units sold mounted
81-on a motor vehicle required to be licensed if the selling price
82-of the tender is separately stated.
83-Farm machinery and equipment shall include precision
84-farming equipment that is installed or purchased to be
85-installed on farm machinery and equipment, including, but not
86-limited to, tractors, harvesters, sprayers, planters, seeders,
87-
88-
89-or spreaders. Precision farming equipment includes, but is not
90-limited to, soil testing sensors, computers, monitors,
91-software, global positioning and mapping systems, and other
92-such equipment.
93-Farm machinery and equipment also includes computers,
94-sensors, software, and related equipment used primarily in the
95-computer-assisted operation of production agriculture
96-facilities, equipment, and activities such as, but not limited
97-to, the collection, monitoring, and correlation of animal and
98-crop data for the purpose of formulating animal diets and
99-agricultural chemicals.
100-Beginning on January 1, 2024, farm machinery and equipment
101-also includes electrical power generation equipment used
102-primarily for production agriculture.
103-This item (7) is exempt from the provisions of Section
104-3-75.
105-(8) Until June 30, 2013, fuel and petroleum products sold
106-to or used by an air common carrier, certified by the carrier
107-to be used for consumption, shipment, or storage in the
108-conduct of its business as an air common carrier, for a flight
109-destined for or returning from a location or locations outside
110-the United States without regard to previous or subsequent
111-domestic stopovers.
112-Beginning July 1, 2013, fuel and petroleum products sold
113-to or used by an air carrier, certified by the carrier to be
114-used for consumption, shipment, or storage in the conduct of
115-
116-
117-its business as an air common carrier, for a flight that (i) is
118-engaged in foreign trade or is engaged in trade between the
119-United States and any of its possessions and (ii) transports
120-at least one individual or package for hire from the city of
121-origination to the city of final destination on the same
122-aircraft, without regard to a change in the flight number of
123-that aircraft.
124-(9) Proceeds of mandatory service charges separately
125-stated on customers' bills for the purchase and consumption of
126-food and beverages acquired as an incident to the purchase of a
127-service from a serviceman, to the extent that the proceeds of
128-the service charge are in fact turned over as tips or as a
129-substitute for tips to the employees who participate directly
130-in preparing, serving, hosting or cleaning up the food or
131-beverage function with respect to which the service charge is
132-imposed.
133-(10) Until July 1, 2003, oil field exploration, drilling,
134-and production equipment, including (i) rigs and parts of
135-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
136-pipe and tubular goods, including casing and drill strings,
137-(iii) pumps and pump-jack units, (iv) storage tanks and flow
138-lines, (v) any individual replacement part for oil field
139-exploration, drilling, and production equipment, and (vi)
140-machinery and equipment purchased for lease; but excluding
141-motor vehicles required to be registered under the Illinois
142-Vehicle Code.
143-
144-
145-(11) Proceeds from the sale of photoprocessing machinery
146-and equipment, including repair and replacement parts, both
147-new and used, including that manufactured on special order,
148-certified by the purchaser to be used primarily for
149-photoprocessing, and including photoprocessing machinery and
150-equipment purchased for lease.
151-(12) Until July 1, 2028, coal and aggregate exploration,
152-mining, off-highway hauling, processing, maintenance, and
153-reclamation equipment, including replacement parts and
154-equipment, and including equipment purchased for lease, but
155-excluding motor vehicles required to be registered under the
156-Illinois Vehicle Code. The changes made to this Section by
157-Public Act 97-767 apply on and after July 1, 2003, but no claim
158-for credit or refund is allowed on or after August 16, 2013
159-(the effective date of Public Act 98-456) for such taxes paid
160-during the period beginning July 1, 2003 and ending on August
161-16, 2013 (the effective date of Public Act 98-456).
162-(13) Semen used for artificial insemination of livestock
163-for direct agricultural production.
164-(14) Horses, or interests in horses, registered with and
165-meeting the requirements of any of the Arabian Horse Club
166-Registry of America, Appaloosa Horse Club, American Quarter
167-Horse Association, United States Trotting Association, or
168-Jockey Club, as appropriate, used for purposes of breeding or
169-racing for prizes. This item (14) is exempt from the
170-provisions of Section 3-75, and the exemption provided for
171-
172-
173-under this item (14) applies for all periods beginning May 30,
174-1995, but no claim for credit or refund is allowed on or after
175-January 1, 2008 (the effective date of Public Act 95-88) for
176-such taxes paid during the period beginning May 30, 2000 and
177-ending on January 1, 2008 (the effective date of Public Act
178-95-88).
179-(15) Computers and communications equipment utilized for
180-any hospital purpose and equipment used in the diagnosis,
181-analysis, or treatment of hospital patients purchased by a
182-lessor who leases the equipment, under a lease of one year or
183-longer executed or in effect at the time the lessor would
184-otherwise be subject to the tax imposed by this Act, to a
185-hospital that has been issued an active tax exemption
186-identification number by the Department under Section 1g of
187-the Retailers' Occupation Tax Act. If the equipment is leased
188-in a manner that does not qualify for this exemption or is used
189-in any other non-exempt manner, the lessor shall be liable for
190-the tax imposed under this Act or the Use Tax Act, as the case
191-may be, based on the fair market value of the property at the
192-time the non-qualifying use occurs. No lessor shall collect or
193-attempt to collect an amount (however designated) that
194-purports to reimburse that lessor for the tax imposed by this
195-Act or the Use Tax Act, as the case may be, if the tax has not
196-been paid by the lessor. If a lessor improperly collects any
197-such amount from the lessee, the lessee shall have a legal
198-right to claim a refund of that amount from the lessor. If,
199-
200-
201-however, that amount is not refunded to the lessee for any
202-reason, the lessor is liable to pay that amount to the
203-Department.
204-(16) Personal property purchased by a lessor who leases
205-the property, under a lease of one year or longer executed or
206-in effect at the time the lessor would otherwise be subject to
207-the tax imposed by this Act, to a governmental body that has
208-been issued an active tax exemption identification number by
209-the Department under Section 1g of the Retailers' Occupation
210-Tax Act. If the property is leased in a manner that does not
211-qualify for this exemption or is used in any other non-exempt
212-manner, the lessor shall be liable for the tax imposed under
213-this Act or the Use Tax Act, as the case may be, based on the
214-fair market value of the property at the time the
215-non-qualifying use occurs. No lessor shall collect or attempt
216-to collect an amount (however designated) that purports to
217-reimburse that lessor for the tax imposed by this Act or the
218-Use Tax Act, as the case may be, if the tax has not been paid
219-by the lessor. If a lessor improperly collects any such amount
220-from the lessee, the lessee shall have a legal right to claim a
221-refund of that amount from the lessor. If, however, that
222-amount is not refunded to the lessee for any reason, the lessor
223-is liable to pay that amount to the Department.
224-(17) Beginning with taxable years ending on or after
225-December 31, 1995 and ending with taxable years ending on or
226-before December 31, 2004, personal property that is donated
227-
228-
229-for disaster relief to be used in a State or federally declared
230-disaster area in Illinois or bordering Illinois by a
231-manufacturer or retailer that is registered in this State to a
232-corporation, society, association, foundation, or institution
233-that has been issued a sales tax exemption identification
234-number by the Department that assists victims of the disaster
235-who reside within the declared disaster area.
236-(18) Beginning with taxable years ending on or after
237-December 31, 1995 and ending with taxable years ending on or
238-before December 31, 2004, personal property that is used in
239-the performance of infrastructure repairs in this State,
240-including, but not limited to, municipal roads and streets,
241-access roads, bridges, sidewalks, waste disposal systems,
242-water and sewer line extensions, water distribution and
243-purification facilities, storm water drainage and retention
244-facilities, and sewage treatment facilities, resulting from a
245-State or federally declared disaster in Illinois or bordering
246-Illinois when such repairs are initiated on facilities located
247-in the declared disaster area within 6 months after the
248-disaster.
249-(19) Beginning July 1, 1999, game or game birds purchased
250-at a "game breeding and hunting preserve area" as that term is
251-used in the Wildlife Code. This paragraph is exempt from the
252-provisions of Section 3-75.
253-(20) A motor vehicle, as that term is defined in Section
254-1-146 of the Illinois Vehicle Code, that is donated to a
255-
256-
257-corporation, limited liability company, society, association,
258-foundation, or institution that is determined by the
259-Department to be organized and operated exclusively for
260-educational purposes. For purposes of this exemption, "a
261-corporation, limited liability company, society, association,
262-foundation, or institution organized and operated exclusively
263-for educational purposes" means all tax-supported public
264-schools, private schools that offer systematic instruction in
265-useful branches of learning by methods common to public
266-schools and that compare favorably in their scope and
267-intensity with the course of study presented in tax-supported
268-schools, and vocational or technical schools or institutes
269-organized and operated exclusively to provide a course of
270-study of not less than 6 weeks duration and designed to prepare
271-individuals to follow a trade or to pursue a manual,
272-technical, mechanical, industrial, business, or commercial
273-occupation.
274-(21) Beginning January 1, 2000, personal property,
275-including food, purchased through fundraising events for the
276-benefit of a public or private elementary or secondary school,
277-a group of those schools, or one or more school districts if
278-the events are sponsored by an entity recognized by the school
279-district that consists primarily of volunteers and includes
280-parents and teachers of the school children. This paragraph
281-does not apply to fundraising events (i) for the benefit of
282-private home instruction or (ii) for which the fundraising
283-
284-
285-entity purchases the personal property sold at the events from
286-another individual or entity that sold the property for the
287-purpose of resale by the fundraising entity and that profits
288-from the sale to the fundraising entity. This paragraph is
289-exempt from the provisions of Section 3-75.
290-(22) Beginning January 1, 2000 and through December 31,
291-2001, new or used automatic vending machines that prepare and
292-serve hot food and beverages, including coffee, soup, and
293-other items, and replacement parts for these machines.
294-Beginning January 1, 2002 and through June 30, 2003, machines
295-and parts for machines used in commercial, coin-operated
296-amusement and vending business if a use or occupation tax is
297-paid on the gross receipts derived from the use of the
298-commercial, coin-operated amusement and vending machines. This
299-paragraph is exempt from the provisions of Section 3-75.
300-(23) Beginning August 23, 2001 and through June 30, 2016,
301-food for human consumption that is to be consumed off the
302-premises where it is sold (other than alcoholic beverages,
303-soft drinks, and food that has been prepared for immediate
304-consumption) and prescription and nonprescription medicines,
305-drugs, medical appliances, and insulin, urine testing
306-materials, syringes, and needles used by diabetics, for human
307-use, when purchased for use by a person receiving medical
308-assistance under Article V of the Illinois Public Aid Code who
309-resides in a licensed long-term care facility, as defined in
310-the Nursing Home Care Act, or in a licensed facility as defined
311-
312-
313-in the ID/DD Community Care Act, the MC/DD Act, or the
314-Specialized Mental Health Rehabilitation Act of 2013.
315-(24) Beginning on August 2, 2001 (the effective date of
316-Public Act 92-227), computers and communications equipment
317-utilized for any hospital purpose and equipment used in the
318-diagnosis, analysis, or treatment of hospital patients
319-purchased by a lessor who leases the equipment, under a lease
320-of one year or longer executed or in effect at the time the
321-lessor would otherwise be subject to the tax imposed by this
322-Act, to a hospital that has been issued an active tax exemption
323-identification number by the Department under Section 1g of
324-the Retailers' Occupation Tax Act. If the equipment is leased
325-in a manner that does not qualify for this exemption or is used
326-in any other nonexempt manner, the lessor shall be liable for
327-the tax imposed under this Act or the Use Tax Act, as the case
328-may be, based on the fair market value of the property at the
329-time the nonqualifying use occurs. No lessor shall collect or
330-attempt to collect an amount (however designated) that
331-purports to reimburse that lessor for the tax imposed by this
332-Act or the Use Tax Act, as the case may be, if the tax has not
333-been paid by the lessor. If a lessor improperly collects any
334-such amount from the lessee, the lessee shall have a legal
335-right to claim a refund of that amount from the lessor. If,
336-however, that amount is not refunded to the lessee for any
337-reason, the lessor is liable to pay that amount to the
338-Department. This paragraph is exempt from the provisions of
339-
340-
341-Section 3-75.
342-(25) Beginning on August 2, 2001 (the effective date of
343-Public Act 92-227), personal property purchased by a lessor
344-who leases the property, under a lease of one year or longer
345-executed or in effect at the time the lessor would otherwise be
346-subject to the tax imposed by this Act, to a governmental body
347-that has been issued an active tax exemption identification
348-number by the Department under Section 1g of the Retailers'
349-Occupation Tax Act. If the property is leased in a manner that
350-does not qualify for this exemption or is used in any other
351-nonexempt manner, the lessor shall be liable for the tax
352-imposed under this Act or the Use Tax Act, as the case may be,
353-based on the fair market value of the property at the time the
354-nonqualifying use occurs. No lessor shall collect or attempt
355-to collect an amount (however designated) that purports to
356-reimburse that lessor for the tax imposed by this Act or the
357-Use Tax Act, as the case may be, if the tax has not been paid
358-by the lessor. If a lessor improperly collects any such amount
359-from the lessee, the lessee shall have a legal right to claim a
360-refund of that amount from the lessor. If, however, that
361-amount is not refunded to the lessee for any reason, the lessor
362-is liable to pay that amount to the Department. This paragraph
363-is exempt from the provisions of Section 3-75.
364-(26) Beginning January 1, 2008, tangible personal property
365-used in the construction or maintenance of a community water
366-supply, as defined under Section 3.145 of the Environmental
367-
368-
369-Protection Act, that is operated by a not-for-profit
370-corporation that holds a valid water supply permit issued
371-under Title IV of the Environmental Protection Act. This
372-paragraph is exempt from the provisions of Section 3-75.
373-(27) Beginning January 1, 2010 and continuing through
374-December 31, 2029, materials, parts, equipment, components,
375-and furnishings incorporated into or upon an aircraft as part
376-of the modification, refurbishment, completion, replacement,
377-repair, or maintenance of the aircraft. This exemption
378-includes consumable supplies used in the modification,
379-refurbishment, completion, replacement, repair, and
380-maintenance of aircraft. However, until January 1, 2024, this
381-exemption excludes any materials, parts, equipment,
382-components, and consumable supplies used in the modification,
383-replacement, repair, and maintenance of aircraft engines or
384-power plants, whether such engines or power plants are
385-installed or uninstalled upon any such aircraft. "Consumable
386-supplies" include, but are not limited to, adhesive, tape,
387-sandpaper, general purpose lubricants, cleaning solution,
388-latex gloves, and protective films.
389-Beginning January 1, 2010 and continuing through December
390-31, 2023, this exemption applies only to the use of qualifying
391-tangible personal property transferred incident to the
392-modification, refurbishment, completion, replacement, repair,
393-or maintenance of aircraft by persons who (i) hold an Air
394-Agency Certificate and are empowered to operate an approved
395-
396-
397-repair station by the Federal Aviation Administration, (ii)
398-have a Class IV Rating, and (iii) conduct operations in
399-accordance with Part 145 of the Federal Aviation Regulations.
400-From January 1, 2024 through December 31, 2029, this exemption
401-applies only to the use of qualifying tangible personal
402-property transferred incident to by: (A) the modification,
403-refurbishment, completion, repair, replacement, or maintenance
404-of an aircraft by persons who modify, refurbish, complete,
405-repair, replace, or maintain aircraft and who (i) hold an Air
406-Agency Certificate and are empowered to operate an approved
407-repair station by the Federal Aviation Administration, (ii)
408-have a Class IV Rating, and (iii) conduct operations in
409-accordance with Part 145 of the Federal Aviation Regulations;
410-and (B) persons who engage in the modification, replacement,
411-repair, and maintenance of aircraft engines or power plants
412-without regard to whether or not those persons meet the
413-qualifications of item (A).
414-The exemption does not include aircraft operated by a
415-commercial air carrier providing scheduled passenger air
416-service pursuant to authority issued under Part 121 or Part
417-129 of the Federal Aviation Regulations. The changes made to
418-this paragraph (27) by Public Act 98-534 are declarative of
419-existing law. It is the intent of the General Assembly that the
420-exemption under this paragraph (27) applies continuously from
421-January 1, 2010 through December 31, 2024; however, no claim
422-for credit or refund is allowed for taxes paid as a result of
423-
424-
425-the disallowance of this exemption on or after January 1, 2015
426-and prior to February 5, 2020 (the effective date of Public Act
427-101-629).
428-(28) Tangible personal property purchased by a
429-public-facilities corporation, as described in Section
430-11-65-10 of the Illinois Municipal Code, for purposes of
431-constructing or furnishing a municipal convention hall, but
432-only if the legal title to the municipal convention hall is
433-transferred to the municipality without any further
434-consideration by or on behalf of the municipality at the time
435-of the completion of the municipal convention hall or upon the
436-retirement or redemption of any bonds or other debt
437-instruments issued by the public-facilities corporation in
438-connection with the development of the municipal convention
439-hall. This exemption includes existing public-facilities
440-corporations as provided in Section 11-65-25 of the Illinois
441-Municipal Code. This paragraph is exempt from the provisions
442-of Section 3-75.
443-(29) Beginning January 1, 2017 and through December 31,
444-2026, menstrual pads, tampons, and menstrual cups.
445-(30) Tangible personal property transferred to a purchaser
446-who is exempt from the tax imposed by this Act by operation of
447-federal law. This paragraph is exempt from the provisions of
448-Section 3-75.
449-(31) Qualified tangible personal property used in the
450-construction or operation of a data center that has been
451-
452-
453-granted a certificate of exemption by the Department of
454-Commerce and Economic Opportunity, whether that tangible
455-personal property is purchased by the owner, operator, or
456-tenant of the data center or by a contractor or subcontractor
457-of the owner, operator, or tenant. Data centers that would
458-have qualified for a certificate of exemption prior to January
459-1, 2020 had Public Act 101-31 been in effect, may apply for and
460-obtain an exemption for subsequent purchases of computer
461-equipment or enabling software purchased or leased to upgrade,
462-supplement, or replace computer equipment or enabling software
463-purchased or leased in the original investment that would have
464-qualified.
465-The Department of Commerce and Economic Opportunity shall
466-grant a certificate of exemption under this item (31) to
467-qualified data centers as defined by Section 605-1025 of the
468-Department of Commerce and Economic Opportunity Law of the
469-Civil Administrative Code of Illinois.
470-For the purposes of this item (31):
471-"Data center" means a building or a series of
472-buildings rehabilitated or constructed to house working
473-servers in one physical location or multiple sites within
474-the State of Illinois.
475-"Qualified tangible personal property" means:
476-electrical systems and equipment; climate control and
477-chilling equipment and systems; mechanical systems and
478-equipment; monitoring and secure systems; emergency
479-
480-
481-generators; hardware; computers; servers; data storage
482-devices; network connectivity equipment; racks; cabinets;
483-telecommunications cabling infrastructure; raised floor
484-systems; peripheral components or systems; software;
485-mechanical, electrical, or plumbing systems; battery
486-systems; cooling systems and towers; temperature control
487-systems; other cabling; and other data center
488-infrastructure equipment and systems necessary to operate
489-qualified tangible personal property, including fixtures;
490-and component parts of any of the foregoing, including
491-installation, maintenance, repair, refurbishment, and
492-replacement of qualified tangible personal property to
493-generate, transform, transmit, distribute, or manage
494-electricity necessary to operate qualified tangible
495-personal property; and all other tangible personal
496-property that is essential to the operations of a computer
497-data center. The term "qualified tangible personal
498-property" also includes building materials physically
499-incorporated into in to the qualifying data center. To
500-document the exemption allowed under this Section, the
501-retailer must obtain from the purchaser a copy of the
502-certificate of eligibility issued by the Department of
503-Commerce and Economic Opportunity.
504-This item (31) is exempt from the provisions of Section
505-3-75.
506-(32) Beginning July 1, 2022, breast pumps, breast pump
507-
508-
509-collection and storage supplies, and breast pump kits. This
510-item (32) is exempt from the provisions of Section 3-75. As
511-used in this item (32):
512-"Breast pump" means an electrically controlled or
513-manually controlled pump device designed or marketed to be
514-used to express milk from a human breast during lactation,
515-including the pump device and any battery, AC adapter, or
516-other power supply unit that is used to power the pump
517-device and is packaged and sold with the pump device at the
518-time of sale.
519-"Breast pump collection and storage supplies" means
520-items of tangible personal property designed or marketed
521-to be used in conjunction with a breast pump to collect
522-milk expressed from a human breast and to store collected
523-milk until it is ready for consumption.
524-"Breast pump collection and storage supplies"
525-includes, but is not limited to: breast shields and breast
526-shield connectors; breast pump tubes and tubing adapters;
527-breast pump valves and membranes; backflow protectors and
528-backflow protector adaptors; bottles and bottle caps
529-specific to the operation of the breast pump; and breast
530-milk storage bags.
531-"Breast pump collection and storage supplies" does not
532-include: (1) bottles and bottle caps not specific to the
533-operation of the breast pump; (2) breast pump travel bags
534-and other similar carrying accessories, including ice
535-
536-
537-packs, labels, and other similar products; (3) breast pump
538-cleaning supplies; (4) nursing bras, bra pads, breast
539-shells, and other similar products; and (5) creams,
540-ointments, and other similar products that relieve
541-breastfeeding-related symptoms or conditions of the
542-breasts or nipples, unless sold as part of a breast pump
543-kit that is pre-packaged by the breast pump manufacturer
544-or distributor.
545-"Breast pump kit" means a kit that: (1) contains no
546-more than a breast pump, breast pump collection and
547-storage supplies, a rechargeable battery for operating the
548-breast pump, a breastmilk cooler, bottle stands, ice
549-packs, and a breast pump carrying case; and (2) is
550-pre-packaged as a breast pump kit by the breast pump
551-manufacturer or distributor.
552-(33) Tangible personal property sold by or on behalf of
553-the State Treasurer pursuant to the Revised Uniform Unclaimed
554-Property Act. This item (33) is exempt from the provisions of
555-Section 3-75.
556-(34) Beginning on January 1, 2024, tangible personal
557-property purchased by an active duty member of the armed
558-forces of the United States who presents valid military
559-identification and purchases the property using a form of
560-payment where the federal government is the payor. The member
561-of the armed forces must complete, at the point of sale, a form
562-prescribed by the Department of Revenue documenting that the
563-
564-
565-transaction is eligible for the exemption under this
566-paragraph. Retailers must keep the form as documentation of
567-the exemption in their records for a period of not less than 6
568-years. "Armed forces of the United States" means the United
569-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
570-This paragraph is exempt from the provisions of Section 3-75.
571-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
572-Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
573-75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
574-Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
575-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
576-revised 12-12-23.)
577-Section 10. The Service Occupation Tax Act is amended by
578-changing Section 3-5 as follows:
579-(35 ILCS 115/3-5)
580-Sec. 3-5. Exemptions. The following tangible personal
581-property is exempt from the tax imposed by this Act:
582-(1) Personal property sold by a corporation, society,
583-association, foundation, institution, or organization, other
584-than a limited liability company, that is organized and
585-operated as a not-for-profit service enterprise for the
586-benefit of persons 65 years of age or older if the personal
587-property was not purchased by the enterprise for the purpose
588-of resale by the enterprise.
589-
590-
591-(2) Personal property purchased by a not-for-profit
592-Illinois county fair association for use in conducting,
593-operating, or promoting the county fair.
594-(3) Personal property purchased by any not-for-profit arts
595-or cultural organization that establishes, by proof required
596-by the Department by rule, that it has received an exemption
597-under Section 501(c)(3) of the Internal Revenue Code and that
598-is organized and operated primarily for the presentation or
599-support of arts or cultural programming, activities, or
600-services. These organizations include, but are not limited to,
601-music and dramatic arts organizations such as symphony
602-orchestras and theatrical groups, arts and cultural service
603-organizations, local arts councils, visual arts organizations,
604-and media arts organizations. On and after July 1, 2001 (the
605-effective date of Public Act 92-35), however, an entity
606-otherwise eligible for this exemption shall not make tax-free
607-purchases unless it has an active identification number issued
608-by the Department.
609-(4) Legal tender, currency, medallions, or gold or silver
610-coinage issued by the State of Illinois, the government of the
611-United States of America, or the government of any foreign
612-country, and bullion.
613-(5) Until July 1, 2003 and beginning again on September 1,
614-2004 through August 30, 2014, graphic arts machinery and
615-equipment, including repair and replacement parts, both new
616-and used, and including that manufactured on special order or
617-
618-
619-purchased for lease, certified by the purchaser to be used
620-primarily for graphic arts production. Equipment includes
621-chemicals or chemicals acting as catalysts but only if the
622-chemicals or chemicals acting as catalysts effect a direct and
623-immediate change upon a graphic arts product. Beginning on
624-July 1, 2017, graphic arts machinery and equipment is included
625-in the manufacturing and assembling machinery and equipment
626-exemption under Section 2 of this Act.
627-(6) Personal property sold by a teacher-sponsored student
628-organization affiliated with an elementary or secondary school
629-located in Illinois.
630-(7) Farm machinery and equipment, both new and used,
631-including that manufactured on special order, certified by the
632-purchaser to be used primarily for production agriculture or
633-State or federal agricultural programs, including individual
634-replacement parts for the machinery and equipment, including
635-machinery and equipment purchased for lease, and including
636-implements of husbandry defined in Section 1-130 of the
637-Illinois Vehicle Code, farm machinery and agricultural
638-chemical and fertilizer spreaders, and nurse wagons required
639-to be registered under Section 3-809 of the Illinois Vehicle
640-Code, but excluding other motor vehicles required to be
641-registered under the Illinois Vehicle Code. Horticultural
642-polyhouses or hoop houses used for propagating, growing, or
643-overwintering plants shall be considered farm machinery and
644-equipment under this item (7). Agricultural chemical tender
645-
646-
647-tanks and dry boxes shall include units sold separately from a
648-motor vehicle required to be licensed and units sold mounted
649-on a motor vehicle required to be licensed if the selling price
650-of the tender is separately stated.
651-Farm machinery and equipment shall include precision
652-farming equipment that is installed or purchased to be
653-installed on farm machinery and equipment, including, but not
654-limited to, tractors, harvesters, sprayers, planters, seeders,
655-or spreaders. Precision farming equipment includes, but is not
656-limited to, soil testing sensors, computers, monitors,
657-software, global positioning and mapping systems, and other
658-such equipment.
659-Farm machinery and equipment also includes computers,
660-sensors, software, and related equipment used primarily in the
661-computer-assisted operation of production agriculture
662-facilities, equipment, and activities such as, but not limited
663-to, the collection, monitoring, and correlation of animal and
664-crop data for the purpose of formulating animal diets and
665-agricultural chemicals.
666-Beginning on January 1, 2024, farm machinery and equipment
667-also includes electrical power generation equipment used
668-primarily for production agriculture.
669-This item (7) is exempt from the provisions of Section
670-3-55.
671-(8) Until June 30, 2013, fuel and petroleum products sold
672-to or used by an air common carrier, certified by the carrier
673-
674-
675-to be used for consumption, shipment, or storage in the
676-conduct of its business as an air common carrier, for a flight
677-destined for or returning from a location or locations outside
678-the United States without regard to previous or subsequent
679-domestic stopovers.
680-Beginning July 1, 2013, fuel and petroleum products sold
681-to or used by an air carrier, certified by the carrier to be
682-used for consumption, shipment, or storage in the conduct of
683-its business as an air common carrier, for a flight that (i) is
684-engaged in foreign trade or is engaged in trade between the
685-United States and any of its possessions and (ii) transports
686-at least one individual or package for hire from the city of
687-origination to the city of final destination on the same
688-aircraft, without regard to a change in the flight number of
689-that aircraft.
690-(9) Proceeds of mandatory service charges separately
691-stated on customers' bills for the purchase and consumption of
692-food and beverages, to the extent that the proceeds of the
693-service charge are in fact turned over as tips or as a
694-substitute for tips to the employees who participate directly
695-in preparing, serving, hosting or cleaning up the food or
696-beverage function with respect to which the service charge is
697-imposed.
698-(10) Until July 1, 2003, oil field exploration, drilling,
699-and production equipment, including (i) rigs and parts of
700-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
701-
702-
703-pipe and tubular goods, including casing and drill strings,
704-(iii) pumps and pump-jack units, (iv) storage tanks and flow
705-lines, (v) any individual replacement part for oil field
706-exploration, drilling, and production equipment, and (vi)
707-machinery and equipment purchased for lease; but excluding
708-motor vehicles required to be registered under the Illinois
709-Vehicle Code.
710-(11) Photoprocessing machinery and equipment, including
711-repair and replacement parts, both new and used, including
712-that manufactured on special order, certified by the purchaser
713-to be used primarily for photoprocessing, and including
714-photoprocessing machinery and equipment purchased for lease.
715-(12) Until July 1, 2028, coal and aggregate exploration,
716-mining, off-highway hauling, processing, maintenance, and
717-reclamation equipment, including replacement parts and
718-equipment, and including equipment purchased for lease, but
719-excluding motor vehicles required to be registered under the
720-Illinois Vehicle Code. The changes made to this Section by
721-Public Act 97-767 apply on and after July 1, 2003, but no claim
722-for credit or refund is allowed on or after August 16, 2013
723-(the effective date of Public Act 98-456) for such taxes paid
724-during the period beginning July 1, 2003 and ending on August
725-16, 2013 (the effective date of Public Act 98-456).
726-(13) Beginning January 1, 1992 and through June 30, 2016,
727-food for human consumption that is to be consumed off the
728-premises where it is sold (other than alcoholic beverages,
729-
730-
731-soft drinks and food that has been prepared for immediate
732-consumption) and prescription and non-prescription medicines,
733-drugs, medical appliances, and insulin, urine testing
734-materials, syringes, and needles used by diabetics, for human
735-use, when purchased for use by a person receiving medical
736-assistance under Article V of the Illinois Public Aid Code who
737-resides in a licensed long-term care facility, as defined in
738-the Nursing Home Care Act, or in a licensed facility as defined
739-in the ID/DD Community Care Act, the MC/DD Act, or the
740-Specialized Mental Health Rehabilitation Act of 2013.
741-(14) Semen used for artificial insemination of livestock
742-for direct agricultural production.
743-(15) Horses, or interests in horses, registered with and
744-meeting the requirements of any of the Arabian Horse Club
745-Registry of America, Appaloosa Horse Club, American Quarter
746-Horse Association, United States Trotting Association, or
747-Jockey Club, as appropriate, used for purposes of breeding or
748-racing for prizes. This item (15) is exempt from the
749-provisions of Section 3-55, and the exemption provided for
750-under this item (15) applies for all periods beginning May 30,
751-1995, but no claim for credit or refund is allowed on or after
752-January 1, 2008 (the effective date of Public Act 95-88) for
753-such taxes paid during the period beginning May 30, 2000 and
754-ending on January 1, 2008 (the effective date of Public Act
755-95-88).
756-(16) Computers and communications equipment utilized for
757-
758-
759-any hospital purpose and equipment used in the diagnosis,
760-analysis, or treatment of hospital patients sold to a lessor
761-who leases the equipment, under a lease of one year or longer
762-executed or in effect at the time of the purchase, to a
763-hospital that has been issued an active tax exemption
764-identification number by the Department under Section 1g of
765-the Retailers' Occupation Tax Act.
766-(17) Personal property sold to a lessor who leases the
767-property, under a lease of one year or longer executed or in
768-effect at the time of the purchase, to a governmental body that
769-has been issued an active tax exemption identification number
770-by the Department under Section 1g of the Retailers'
771-Occupation Tax Act.
772-(18) Beginning with taxable years ending on or after
773-December 31, 1995 and ending with taxable years ending on or
774-before December 31, 2004, personal property that is donated
775-for disaster relief to be used in a State or federally declared
776-disaster area in Illinois or bordering Illinois by a
777-manufacturer or retailer that is registered in this State to a
778-corporation, society, association, foundation, or institution
779-that has been issued a sales tax exemption identification
780-number by the Department that assists victims of the disaster
781-who reside within the declared disaster area.
782-(19) Beginning with taxable years ending on or after
783-December 31, 1995 and ending with taxable years ending on or
784-before December 31, 2004, personal property that is used in
785-
786-
787-the performance of infrastructure repairs in this State,
788-including, but not limited to, municipal roads and streets,
789-access roads, bridges, sidewalks, waste disposal systems,
790-water and sewer line extensions, water distribution and
791-purification facilities, storm water drainage and retention
792-facilities, and sewage treatment facilities, resulting from a
793-State or federally declared disaster in Illinois or bordering
794-Illinois when such repairs are initiated on facilities located
795-in the declared disaster area within 6 months after the
796-disaster.
797-(20) Beginning July 1, 1999, game or game birds sold at a
798-"game breeding and hunting preserve area" as that term is used
799-in the Wildlife Code. This paragraph is exempt from the
800-provisions of Section 3-55.
801-(21) A motor vehicle, as that term is defined in Section
802-1-146 of the Illinois Vehicle Code, that is donated to a
803-corporation, limited liability company, society, association,
804-foundation, or institution that is determined by the
805-Department to be organized and operated exclusively for
806-educational purposes. For purposes of this exemption, "a
807-corporation, limited liability company, society, association,
808-foundation, or institution organized and operated exclusively
809-for educational purposes" means all tax-supported public
810-schools, private schools that offer systematic instruction in
811-useful branches of learning by methods common to public
812-schools and that compare favorably in their scope and
813-
814-
815-intensity with the course of study presented in tax-supported
816-schools, and vocational or technical schools or institutes
817-organized and operated exclusively to provide a course of
818-study of not less than 6 weeks duration and designed to prepare
819-individuals to follow a trade or to pursue a manual,
820-technical, mechanical, industrial, business, or commercial
821-occupation.
822-(22) Beginning January 1, 2000, personal property,
823-including food, purchased through fundraising events for the
824-benefit of a public or private elementary or secondary school,
825-a group of those schools, or one or more school districts if
826-the events are sponsored by an entity recognized by the school
827-district that consists primarily of volunteers and includes
828-parents and teachers of the school children. This paragraph
829-does not apply to fundraising events (i) for the benefit of
830-private home instruction or (ii) for which the fundraising
831-entity purchases the personal property sold at the events from
832-another individual or entity that sold the property for the
833-purpose of resale by the fundraising entity and that profits
834-from the sale to the fundraising entity. This paragraph is
835-exempt from the provisions of Section 3-55.
836-(23) Beginning January 1, 2000 and through December 31,
837-2001, new or used automatic vending machines that prepare and
838-serve hot food and beverages, including coffee, soup, and
839-other items, and replacement parts for these machines.
840-Beginning January 1, 2002 and through June 30, 2003, machines
841-
842-
843-and parts for machines used in commercial, coin-operated
844-amusement and vending business if a use or occupation tax is
845-paid on the gross receipts derived from the use of the
846-commercial, coin-operated amusement and vending machines. This
847-paragraph is exempt from the provisions of Section 3-55.
848-(24) Beginning on August 2, 2001 (the effective date of
849-Public Act 92-227), computers and communications equipment
850-utilized for any hospital purpose and equipment used in the
851-diagnosis, analysis, or treatment of hospital patients sold to
852-a lessor who leases the equipment, under a lease of one year or
853-longer executed or in effect at the time of the purchase, to a
854-hospital that has been issued an active tax exemption
855-identification number by the Department under Section 1g of
856-the Retailers' Occupation Tax Act. This paragraph is exempt
857-from the provisions of Section 3-55.
858-(25) Beginning on August 2, 2001 (the effective date of
859-Public Act 92-227), personal property sold to a lessor who
860-leases the property, under a lease of one year or longer
861-executed or in effect at the time of the purchase, to a
862-governmental body that has been issued an active tax exemption
863-identification number by the Department under Section 1g of
864-the Retailers' Occupation Tax Act. This paragraph is exempt
865-from the provisions of Section 3-55.
866-(26) Beginning on January 1, 2002 and through June 30,
867-2016, tangible personal property purchased from an Illinois
868-retailer by a taxpayer engaged in centralized purchasing
869-
870-
871-activities in Illinois who will, upon receipt of the property
872-in Illinois, temporarily store the property in Illinois (i)
873-for the purpose of subsequently transporting it outside this
874-State for use or consumption thereafter solely outside this
875-State or (ii) for the purpose of being processed, fabricated,
876-or manufactured into, attached to, or incorporated into other
877-tangible personal property to be transported outside this
878-State and thereafter used or consumed solely outside this
879-State. The Director of Revenue shall, pursuant to rules
880-adopted in accordance with the Illinois Administrative
881-Procedure Act, issue a permit to any taxpayer in good standing
882-with the Department who is eligible for the exemption under
883-this paragraph (26). The permit issued under this paragraph
884-(26) shall authorize the holder, to the extent and in the
885-manner specified in the rules adopted under this Act, to
886-purchase tangible personal property from a retailer exempt
887-from the taxes imposed by this Act. Taxpayers shall maintain
888-all necessary books and records to substantiate the use and
889-consumption of all such tangible personal property outside of
890-the State of Illinois.
891-(27) Beginning January 1, 2008, tangible personal property
892-used in the construction or maintenance of a community water
893-supply, as defined under Section 3.145 of the Environmental
894-Protection Act, that is operated by a not-for-profit
895-corporation that holds a valid water supply permit issued
896-under Title IV of the Environmental Protection Act. This
897-
898-
899-paragraph is exempt from the provisions of Section 3-55.
900-(28) Tangible personal property sold to a
901-public-facilities corporation, as described in Section
902-11-65-10 of the Illinois Municipal Code, for purposes of
903-constructing or furnishing a municipal convention hall, but
904-only if the legal title to the municipal convention hall is
905-transferred to the municipality without any further
906-consideration by or on behalf of the municipality at the time
907-of the completion of the municipal convention hall or upon the
908-retirement or redemption of any bonds or other debt
909-instruments issued by the public-facilities corporation in
910-connection with the development of the municipal convention
911-hall. This exemption includes existing public-facilities
912-corporations as provided in Section 11-65-25 of the Illinois
913-Municipal Code. This paragraph is exempt from the provisions
914-of Section 3-55.
915-(29) Beginning January 1, 2010 and continuing through
916-December 31, 2029, materials, parts, equipment, components,
917-and furnishings incorporated into or upon an aircraft as part
918-of the modification, refurbishment, completion, replacement,
919-repair, or maintenance of the aircraft. This exemption
920-includes consumable supplies used in the modification,
921-refurbishment, completion, replacement, repair, and
922-maintenance of aircraft. However, until January 1, 2024, this
923-exemption excludes any materials, parts, equipment,
924-components, and consumable supplies used in the modification,
925-
926-
927-replacement, repair, and maintenance of aircraft engines or
928-power plants, whether such engines or power plants are
929-installed or uninstalled upon any such aircraft. "Consumable
930-supplies" include, but are not limited to, adhesive, tape,
931-sandpaper, general purpose lubricants, cleaning solution,
932-latex gloves, and protective films.
933-Beginning January 1, 2010 and continuing through December
934-31, 2023, this exemption applies only to the transfer of
935-qualifying tangible personal property incident to the
936-modification, refurbishment, completion, replacement, repair,
937-or maintenance of an aircraft by persons who (i) hold an Air
938-Agency Certificate and are empowered to operate an approved
939-repair station by the Federal Aviation Administration, (ii)
940-have a Class IV Rating, and (iii) conduct operations in
941-accordance with Part 145 of the Federal Aviation Regulations.
942-The exemption does not include aircraft operated by a
943-commercial air carrier providing scheduled passenger air
944-service pursuant to authority issued under Part 121 or Part
945-129 of the Federal Aviation Regulations. From January 1, 2024
946-through December 31, 2029, this exemption applies only to the
947-transfer use of qualifying tangible personal property incident
948-to by: (A) the modification, refurbishment, completion,
949-repair, replacement, or maintenance of an aircraft by persons
950-who modify, refurbish, complete, repair, replace, or maintain
951-aircraft and who (i) hold an Air Agency Certificate and are
952-empowered to operate an approved repair station by the Federal
953-
954-
955-Aviation Administration, (ii) have a Class IV Rating, and
956-(iii) conduct operations in accordance with Part 145 of the
957-Federal Aviation Regulations; and (B) persons who engage in
958-the modification, replacement, repair, and maintenance of
959-aircraft engines or power plants without regard to whether or
960-not those persons meet the qualifications of item (A).
961-The changes made to this paragraph (29) by Public Act
962-98-534 are declarative of existing law. It is the intent of the
963-General Assembly that the exemption under this paragraph (29)
964-applies continuously from January 1, 2010 through December 31,
965-2024; however, no claim for credit or refund is allowed for
966-taxes paid as a result of the disallowance of this exemption on
967-or after January 1, 2015 and prior to February 5, 2020 (the
968-effective date of Public Act 101-629).
969-(30) Beginning January 1, 2017 and through December 31,
970-2026, menstrual pads, tampons, and menstrual cups.
971-(31) Tangible personal property transferred to a purchaser
972-who is exempt from tax by operation of federal law. This
973-paragraph is exempt from the provisions of Section 3-55.
974-(32) Qualified tangible personal property used in the
975-construction or operation of a data center that has been
976-granted a certificate of exemption by the Department of
977-Commerce and Economic Opportunity, whether that tangible
978-personal property is purchased by the owner, operator, or
979-tenant of the data center or by a contractor or subcontractor
980-of the owner, operator, or tenant. Data centers that would
981-
982-
983-have qualified for a certificate of exemption prior to January
984-1, 2020 had Public Act 101-31 been in effect, may apply for and
985-obtain an exemption for subsequent purchases of computer
986-equipment or enabling software purchased or leased to upgrade,
987-supplement, or replace computer equipment or enabling software
988-purchased or leased in the original investment that would have
989-qualified.
990-The Department of Commerce and Economic Opportunity shall
991-grant a certificate of exemption under this item (32) to
992-qualified data centers as defined by Section 605-1025 of the
993-Department of Commerce and Economic Opportunity Law of the
994-Civil Administrative Code of Illinois.
995-For the purposes of this item (32):
996-"Data center" means a building or a series of
997-buildings rehabilitated or constructed to house working
998-servers in one physical location or multiple sites within
999-the State of Illinois.
1000-"Qualified tangible personal property" means:
1001-electrical systems and equipment; climate control and
1002-chilling equipment and systems; mechanical systems and
1003-equipment; monitoring and secure systems; emergency
1004-generators; hardware; computers; servers; data storage
1005-devices; network connectivity equipment; racks; cabinets;
1006-telecommunications cabling infrastructure; raised floor
1007-systems; peripheral components or systems; software;
1008-mechanical, electrical, or plumbing systems; battery
1009-
1010-
1011-systems; cooling systems and towers; temperature control
1012-systems; other cabling; and other data center
1013-infrastructure equipment and systems necessary to operate
1014-qualified tangible personal property, including fixtures;
1015-and component parts of any of the foregoing, including
1016-installation, maintenance, repair, refurbishment, and
1017-replacement of qualified tangible personal property to
1018-generate, transform, transmit, distribute, or manage
1019-electricity necessary to operate qualified tangible
1020-personal property; and all other tangible personal
1021-property that is essential to the operations of a computer
1022-data center. The term "qualified tangible personal
1023-property" also includes building materials physically
1024-incorporated into in to the qualifying data center. To
1025-document the exemption allowed under this Section, the
1026-retailer must obtain from the purchaser a copy of the
1027-certificate of eligibility issued by the Department of
1028-Commerce and Economic Opportunity.
1029-This item (32) is exempt from the provisions of Section
1030-3-55.
1031-(33) Beginning July 1, 2022, breast pumps, breast pump
1032-collection and storage supplies, and breast pump kits. This
1033-item (33) is exempt from the provisions of Section 3-55. As
1034-used in this item (33):
1035-"Breast pump" means an electrically controlled or
1036-manually controlled pump device designed or marketed to be
1037-
1038-
1039-used to express milk from a human breast during lactation,
1040-including the pump device and any battery, AC adapter, or
1041-other power supply unit that is used to power the pump
1042-device and is packaged and sold with the pump device at the
1043-time of sale.
1044-"Breast pump collection and storage supplies" means
1045-items of tangible personal property designed or marketed
1046-to be used in conjunction with a breast pump to collect
1047-milk expressed from a human breast and to store collected
1048-milk until it is ready for consumption.
1049-"Breast pump collection and storage supplies"
1050-includes, but is not limited to: breast shields and breast
1051-shield connectors; breast pump tubes and tubing adapters;
1052-breast pump valves and membranes; backflow protectors and
1053-backflow protector adaptors; bottles and bottle caps
1054-specific to the operation of the breast pump; and breast
1055-milk storage bags.
1056-"Breast pump collection and storage supplies" does not
1057-include: (1) bottles and bottle caps not specific to the
1058-operation of the breast pump; (2) breast pump travel bags
1059-and other similar carrying accessories, including ice
1060-packs, labels, and other similar products; (3) breast pump
1061-cleaning supplies; (4) nursing bras, bra pads, breast
1062-shells, and other similar products; and (5) creams,
1063-ointments, and other similar products that relieve
1064-breastfeeding-related symptoms or conditions of the
1065-
1066-
1067-breasts or nipples, unless sold as part of a breast pump
1068-kit that is pre-packaged by the breast pump manufacturer
1069-or distributor.
1070-"Breast pump kit" means a kit that: (1) contains no
1071-more than a breast pump, breast pump collection and
1072-storage supplies, a rechargeable battery for operating the
1073-breast pump, a breastmilk cooler, bottle stands, ice
1074-packs, and a breast pump carrying case; and (2) is
1075-pre-packaged as a breast pump kit by the breast pump
1076-manufacturer or distributor.
1077-(34) Tangible personal property sold by or on behalf of
1078-the State Treasurer pursuant to the Revised Uniform Unclaimed
1079-Property Act. This item (34) is exempt from the provisions of
1080-Section 3-55.
1081-(35) Beginning on January 1, 2024, tangible personal
1082-property purchased by an active duty member of the armed
1083-forces of the United States who presents valid military
1084-identification and purchases the property using a form of
1085-payment where the federal government is the payor. The member
1086-of the armed forces must complete, at the point of sale, a form
1087-prescribed by the Department of Revenue documenting that the
1088-transaction is eligible for the exemption under this
1089-paragraph. Retailers must keep the form as documentation of
1090-the exemption in their records for a period of not less than 6
1091-years. "Armed forces of the United States" means the United
1092-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1093-
1094-
1095-This paragraph is exempt from the provisions of Section 3-55.
1096-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1097-Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1098-75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1099-Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
1100-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1101-revised 12-12-23.)
1102-Section 15. The Retailers' Occupation Tax Act is amended
1103-by changing Section 2-5 as follows:
1104-(35 ILCS 120/2-5)
1105-Sec. 2-5. Exemptions. Gross receipts from proceeds from
1106-the sale of the following tangible personal property are
1107-exempt from the tax imposed by this Act:
1108-(1) Farm chemicals.
1109-(2) Farm machinery and equipment, both new and used,
1110-including that manufactured on special order, certified by
1111-the purchaser to be used primarily for production
1112-agriculture or State or federal agricultural programs,
1113-including individual replacement parts for the machinery
1114-and equipment, including machinery and equipment purchased
1115-for lease, and including implements of husbandry defined
1116-in Section 1-130 of the Illinois Vehicle Code, farm
1117-machinery and agricultural chemical and fertilizer
1118-spreaders, and nurse wagons required to be registered
1119-
1120-
1121-under Section 3-809 of the Illinois Vehicle Code, but
1122-excluding other motor vehicles required to be registered
1123-under the Illinois Vehicle Code. Horticultural polyhouses
1124-or hoop houses used for propagating, growing, or
1125-overwintering plants shall be considered farm machinery
1126-and equipment under this item (2). Agricultural chemical
1127-tender tanks and dry boxes shall include units sold
1128-separately from a motor vehicle required to be licensed
1129-and units sold mounted on a motor vehicle required to be
1130-licensed, if the selling price of the tender is separately
1131-stated.
1132-Farm machinery and equipment shall include precision
1133-farming equipment that is installed or purchased to be
1134-installed on farm machinery and equipment including, but
1135-not limited to, tractors, harvesters, sprayers, planters,
1136-seeders, or spreaders. Precision farming equipment
1137-includes, but is not limited to, soil testing sensors,
1138-computers, monitors, software, global positioning and
1139-mapping systems, and other such equipment.
1140-Farm machinery and equipment also includes computers,
1141-sensors, software, and related equipment used primarily in
1142-the computer-assisted operation of production agriculture
1143-facilities, equipment, and activities such as, but not
1144-limited to, the collection, monitoring, and correlation of
1145-animal and crop data for the purpose of formulating animal
1146-diets and agricultural chemicals.
1147-
1148-
1149-Beginning on January 1, 2024, farm machinery and
1150-equipment also includes electrical power generation
1151-equipment used primarily for production agriculture.
1152-This item (2) is exempt from the provisions of Section
1153-2-70.
1154-(3) Until July 1, 2003, distillation machinery and
1155-equipment, sold as a unit or kit, assembled or installed
1156-by the retailer, certified by the user to be used only for
1157-the production of ethyl alcohol that will be used for
1158-consumption as motor fuel or as a component of motor fuel
1159-for the personal use of the user, and not subject to sale
1160-or resale.
1161-(4) Until July 1, 2003 and beginning again September
1162-1, 2004 through August 30, 2014, graphic arts machinery
1163-and equipment, including repair and replacement parts,
1164-both new and used, and including that manufactured on
1165-special order or purchased for lease, certified by the
1166-purchaser to be used primarily for graphic arts
1167-production. Equipment includes chemicals or chemicals
1168-acting as catalysts but only if the chemicals or chemicals
1169-acting as catalysts effect a direct and immediate change
1170-upon a graphic arts product. Beginning on July 1, 2017,
1171-graphic arts machinery and equipment is included in the
1172-manufacturing and assembling machinery and equipment
1173-exemption under paragraph (14).
1174-(5) A motor vehicle that is used for automobile
1175-
1176-
1177-renting, as defined in the Automobile Renting Occupation
1178-and Use Tax Act. This paragraph is exempt from the
1179-provisions of Section 2-70.
1180-(6) Personal property sold by a teacher-sponsored
1181-student organization affiliated with an elementary or
1182-secondary school located in Illinois.
1183-(7) Until July 1, 2003, proceeds of that portion of
1184-the selling price of a passenger car the sale of which is
1185-subject to the Replacement Vehicle Tax.
1186-(8) Personal property sold to an Illinois county fair
1187-association for use in conducting, operating, or promoting
1188-the county fair.
1189-(9) Personal property sold to a not-for-profit arts or
1190-cultural organization that establishes, by proof required
1191-by the Department by rule, that it has received an
1192-exemption under Section 501(c)(3) of the Internal Revenue
1193-Code and that is organized and operated primarily for the
1194-presentation or support of arts or cultural programming,
1195-activities, or services. These organizations include, but
1196-are not limited to, music and dramatic arts organizations
1197-such as symphony orchestras and theatrical groups, arts
1198-and cultural service organizations, local arts councils,
1199-visual arts organizations, and media arts organizations.
1200-On and after July 1, 2001 (the effective date of Public Act
1201-92-35), however, an entity otherwise eligible for this
1202-exemption shall not make tax-free purchases unless it has
1203-
1204-
1205-an active identification number issued by the Department.
1206-(10) Personal property sold by a corporation, society,
1207-association, foundation, institution, or organization,
1208-other than a limited liability company, that is organized
1209-and operated as a not-for-profit service enterprise for
1210-the benefit of persons 65 years of age or older if the
1211-personal property was not purchased by the enterprise for
1212-the purpose of resale by the enterprise.
1213-(11) Except as otherwise provided in this Section,
1214-personal property sold to a governmental body, to a
1215-corporation, society, association, foundation, or
1216-institution organized and operated exclusively for
1217-charitable, religious, or educational purposes, or to a
1218-not-for-profit corporation, society, association,
1219-foundation, institution, or organization that has no
1220-compensated officers or employees and that is organized
1221-and operated primarily for the recreation of persons 55
1222-years of age or older. A limited liability company may
1223-qualify for the exemption under this paragraph only if the
1224-limited liability company is organized and operated
1225-exclusively for educational purposes. On and after July 1,
1226-1987, however, no entity otherwise eligible for this
1227-exemption shall make tax-free purchases unless it has an
1228-active identification number issued by the Department.
1229-(12) (Blank).
1230-(12-5) On and after July 1, 2003 and through June 30,
1231-
1232-
1233-2004, motor vehicles of the second division with a gross
1234-vehicle weight in excess of 8,000 pounds that are subject
1235-to the commercial distribution fee imposed under Section
1236-3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
1237-2004 and through June 30, 2005, the use in this State of
1238-motor vehicles of the second division: (i) with a gross
1239-vehicle weight rating in excess of 8,000 pounds; (ii) that
1240-are subject to the commercial distribution fee imposed
1241-under Section 3-815.1 of the Illinois Vehicle Code; and
1242-(iii) that are primarily used for commercial purposes.
1243-Through June 30, 2005, this exemption applies to repair
1244-and replacement parts added after the initial purchase of
1245-such a motor vehicle if that motor vehicle is used in a
1246-manner that would qualify for the rolling stock exemption
1247-otherwise provided for in this Act. For purposes of this
1248-paragraph, "used for commercial purposes" means the
1249-transportation of persons or property in furtherance of
1250-any commercial or industrial enterprise whether for-hire
1251-or not.
1252-(13) Proceeds from sales to owners, lessors, or
1253-shippers of tangible personal property that is utilized by
1254-interstate carriers for hire for use as rolling stock
1255-moving in interstate commerce and equipment operated by a
1256-telecommunications provider, licensed as a common carrier
1257-by the Federal Communications Commission, which is
1258-permanently installed in or affixed to aircraft moving in
1259-
1260-
1261-interstate commerce.
1262-(14) Machinery and equipment that will be used by the
1263-purchaser, or a lessee of the purchaser, primarily in the
1264-process of manufacturing or assembling tangible personal
1265-property for wholesale or retail sale or lease, whether
1266-the sale or lease is made directly by the manufacturer or
1267-by some other person, whether the materials used in the
1268-process are owned by the manufacturer or some other
1269-person, or whether the sale or lease is made apart from or
1270-as an incident to the seller's engaging in the service
1271-occupation of producing machines, tools, dies, jigs,
1272-patterns, gauges, or other similar items of no commercial
1273-value on special order for a particular purchaser. The
1274-exemption provided by this paragraph (14) does not include
1275-machinery and equipment used in (i) the generation of
1276-electricity for wholesale or retail sale; (ii) the
1277-generation or treatment of natural or artificial gas for
1278-wholesale or retail sale that is delivered to customers
1279-through pipes, pipelines, or mains; or (iii) the treatment
1280-of water for wholesale or retail sale that is delivered to
1281-customers through pipes, pipelines, or mains. The
1282-provisions of Public Act 98-583 are declaratory of
1283-existing law as to the meaning and scope of this
1284-exemption. Beginning on July 1, 2017, the exemption
1285-provided by this paragraph (14) includes, but is not
1286-limited to, graphic arts machinery and equipment, as
1287-
1288-
1289-defined in paragraph (4) of this Section.
1290-(15) Proceeds of mandatory service charges separately
1291-stated on customers' bills for purchase and consumption of
1292-food and beverages, to the extent that the proceeds of the
1293-service charge are in fact turned over as tips or as a
1294-substitute for tips to the employees who participate
1295-directly in preparing, serving, hosting or cleaning up the
1296-food or beverage function with respect to which the
1297-service charge is imposed.
1298-(16) Tangible personal property sold to a purchaser if
1299-the purchaser is exempt from use tax by operation of
1300-federal law. This paragraph is exempt from the provisions
1301-of Section 2-70.
1302-(17) Tangible personal property sold to a common
1303-carrier by rail or motor that receives the physical
1304-possession of the property in Illinois and that transports
1305-the property, or shares with another common carrier in the
1306-transportation of the property, out of Illinois on a
1307-standard uniform bill of lading showing the seller of the
1308-property as the shipper or consignor of the property to a
1309-destination outside Illinois, for use outside Illinois.
1310-(18) Legal tender, currency, medallions, or gold or
1311-silver coinage issued by the State of Illinois, the
1312-government of the United States of America, or the
1313-government of any foreign country, and bullion.
1314-(19) Until July 1, 2003, oil field exploration,
1315-
1316-
1317-drilling, and production equipment, including (i) rigs and
1318-parts of rigs, rotary rigs, cable tool rigs, and workover
1319-rigs, (ii) pipe and tubular goods, including casing and
1320-drill strings, (iii) pumps and pump-jack units, (iv)
1321-storage tanks and flow lines, (v) any individual
1322-replacement part for oil field exploration, drilling, and
1323-production equipment, and (vi) machinery and equipment
1324-purchased for lease; but excluding motor vehicles required
1325-to be registered under the Illinois Vehicle Code.
1326-(20) Photoprocessing machinery and equipment,
1327-including repair and replacement parts, both new and used,
1328-including that manufactured on special order, certified by
1329-the purchaser to be used primarily for photoprocessing,
1330-and including photoprocessing machinery and equipment
1331-purchased for lease.
1332-(21) Until July 1, 2028, coal and aggregate
1333-exploration, mining, off-highway hauling, processing,
1334-maintenance, and reclamation equipment, including
1335-replacement parts and equipment, and including equipment
1336-purchased for lease, but excluding motor vehicles required
1337-to be registered under the Illinois Vehicle Code. The
1338-changes made to this Section by Public Act 97-767 apply on
1339-and after July 1, 2003, but no claim for credit or refund
1340-is allowed on or after August 16, 2013 (the effective date
1341-of Public Act 98-456) for such taxes paid during the
1342-period beginning July 1, 2003 and ending on August 16,
1343-
1344-
1345-2013 (the effective date of Public Act 98-456).
1346-(22) Until June 30, 2013, fuel and petroleum products
1347-sold to or used by an air carrier, certified by the carrier
1348-to be used for consumption, shipment, or storage in the
1349-conduct of its business as an air common carrier, for a
1350-flight destined for or returning from a location or
1351-locations outside the United States without regard to
1352-previous or subsequent domestic stopovers.
1353-Beginning July 1, 2013, fuel and petroleum products
1354-sold to or used by an air carrier, certified by the carrier
1355-to be used for consumption, shipment, or storage in the
1356-conduct of its business as an air common carrier, for a
1357-flight that (i) is engaged in foreign trade or is engaged
1358-in trade between the United States and any of its
1359-possessions and (ii) transports at least one individual or
1360-package for hire from the city of origination to the city
1361-of final destination on the same aircraft, without regard
1362-to a change in the flight number of that aircraft.
1363-(23) A transaction in which the purchase order is
1364-received by a florist who is located outside Illinois, but
1365-who has a florist located in Illinois deliver the property
1366-to the purchaser or the purchaser's donee in Illinois.
1367-(24) Fuel consumed or used in the operation of ships,
1368-barges, or vessels that are used primarily in or for the
1369-transportation of property or the conveyance of persons
1370-for hire on rivers bordering on this State if the fuel is
1371-
1372-
1373-delivered by the seller to the purchaser's barge, ship, or
1374-vessel while it is afloat upon that bordering river.
1375-(25) Except as provided in item (25-5) of this
1376-Section, a motor vehicle sold in this State to a
1377-nonresident even though the motor vehicle is delivered to
1378-the nonresident in this State, if the motor vehicle is not
1379-to be titled in this State, and if a drive-away permit is
1380-issued to the motor vehicle as provided in Section 3-603
1381-of the Illinois Vehicle Code or if the nonresident
1382-purchaser has vehicle registration plates to transfer to
1383-the motor vehicle upon returning to his or her home state.
1384-The issuance of the drive-away permit or having the
1385-out-of-state registration plates to be transferred is
1386-prima facie evidence that the motor vehicle will not be
1387-titled in this State.
1388-(25-5) The exemption under item (25) does not apply if
1389-the state in which the motor vehicle will be titled does
1390-not allow a reciprocal exemption for a motor vehicle sold
1391-and delivered in that state to an Illinois resident but
1392-titled in Illinois. The tax collected under this Act on
1393-the sale of a motor vehicle in this State to a resident of
1394-another state that does not allow a reciprocal exemption
1395-shall be imposed at a rate equal to the state's rate of tax
1396-on taxable property in the state in which the purchaser is
1397-a resident, except that the tax shall not exceed the tax
1398-that would otherwise be imposed under this Act. At the
1399-
1400-
1401-time of the sale, the purchaser shall execute a statement,
1402-signed under penalty of perjury, of his or her intent to
1403-title the vehicle in the state in which the purchaser is a
1404-resident within 30 days after the sale and of the fact of
1405-the payment to the State of Illinois of tax in an amount
1406-equivalent to the state's rate of tax on taxable property
1407-in his or her state of residence and shall submit the
1408-statement to the appropriate tax collection agency in his
1409-or her state of residence. In addition, the retailer must
1410-retain a signed copy of the statement in his or her
1411-records. Nothing in this item shall be construed to
1412-require the removal of the vehicle from this state
1413-following the filing of an intent to title the vehicle in
1414-the purchaser's state of residence if the purchaser titles
1415-the vehicle in his or her state of residence within 30 days
1416-after the date of sale. The tax collected under this Act in
1417-accordance with this item (25-5) shall be proportionately
1418-distributed as if the tax were collected at the 6.25%
1419-general rate imposed under this Act.
1420-(25-7) Beginning on July 1, 2007, no tax is imposed
1421-under this Act on the sale of an aircraft, as defined in
1422-Section 3 of the Illinois Aeronautics Act, if all of the
1423-following conditions are met:
1424-(1) the aircraft leaves this State within 15 days
1425-after the later of either the issuance of the final
1426-billing for the sale of the aircraft, or the
1427-
1428-
1429-authorized approval for return to service, completion
1430-of the maintenance record entry, and completion of the
1431-test flight and ground test for inspection, as
1432-required by 14 CFR 91.407;
1433-(2) the aircraft is not based or registered in
1434-this State after the sale of the aircraft; and
1435-(3) the seller retains in his or her books and
1436-records and provides to the Department a signed and
1437-dated certification from the purchaser, on a form
1438-prescribed by the Department, certifying that the
1439-requirements of this item (25-7) are met. The
1440-certificate must also include the name and address of
1441-the purchaser, the address of the location where the
1442-aircraft is to be titled or registered, the address of
1443-the primary physical location of the aircraft, and
1444-other information that the Department may reasonably
1445-require.
1446-For purposes of this item (25-7):
1447-"Based in this State" means hangared, stored, or
1448-otherwise used, excluding post-sale customizations as
1449-defined in this Section, for 10 or more days in each
1450-12-month period immediately following the date of the sale
1451-of the aircraft.
1452-"Registered in this State" means an aircraft
1453-registered with the Department of Transportation,
1454-Aeronautics Division, or titled or registered with the
1455-
1456-
1457-Federal Aviation Administration to an address located in
1458-this State.
1459-This paragraph (25-7) is exempt from the provisions of
1460-Section 2-70.
1461-(26) Semen used for artificial insemination of
1462-livestock for direct agricultural production.
1463-(27) Horses, or interests in horses, registered with
1464-and meeting the requirements of any of the Arabian Horse
1465-Club Registry of America, Appaloosa Horse Club, American
1466-Quarter Horse Association, United States Trotting
1467-Association, or Jockey Club, as appropriate, used for
1468-purposes of breeding or racing for prizes. This item (27)
1469-is exempt from the provisions of Section 2-70, and the
1470-exemption provided for under this item (27) applies for
1471-all periods beginning May 30, 1995, but no claim for
1472-credit or refund is allowed on or after January 1, 2008
1473-(the effective date of Public Act 95-88) for such taxes
1474-paid during the period beginning May 30, 2000 and ending
1475-on January 1, 2008 (the effective date of Public Act
1476-95-88).
1477-(28) Computers and communications equipment utilized
1478-for any hospital purpose and equipment used in the
1479-diagnosis, analysis, or treatment of hospital patients
1480-sold to a lessor who leases the equipment, under a lease of
1481-one year or longer executed or in effect at the time of the
1482-purchase, to a hospital that has been issued an active tax
1483-
1484-
1485-exemption identification number by the Department under
1486-Section 1g of this Act.
1487-(29) Personal property sold to a lessor who leases the
1488-property, under a lease of one year or longer executed or
1489-in effect at the time of the purchase, to a governmental
1490-body that has been issued an active tax exemption
1491-identification number by the Department under Section 1g
1492-of this Act.
1493-(30) Beginning with taxable years ending on or after
1494-December 31, 1995 and ending with taxable years ending on
1495-or before December 31, 2004, personal property that is
1496-donated for disaster relief to be used in a State or
1497-federally declared disaster area in Illinois or bordering
1498-Illinois by a manufacturer or retailer that is registered
1499-in this State to a corporation, society, association,
1500-foundation, or institution that has been issued a sales
1501-tax exemption identification number by the Department that
1502-assists victims of the disaster who reside within the
1503-declared disaster area.
1504-(31) Beginning with taxable years ending on or after
1505-December 31, 1995 and ending with taxable years ending on
1506-or before December 31, 2004, personal property that is
1507-used in the performance of infrastructure repairs in this
1508-State, including, but not limited to, municipal roads and
1509-streets, access roads, bridges, sidewalks, waste disposal
1510-systems, water and sewer line extensions, water
1511-
1512-
1513-distribution and purification facilities, storm water
1514-drainage and retention facilities, and sewage treatment
1515-facilities, resulting from a State or federally declared
1516-disaster in Illinois or bordering Illinois when such
1517-repairs are initiated on facilities located in the
1518-declared disaster area within 6 months after the disaster.
1519-(32) Beginning July 1, 1999, game or game birds sold
1520-at a "game breeding and hunting preserve area" as that
1521-term is used in the Wildlife Code. This paragraph is
1522-exempt from the provisions of Section 2-70.
1523-(33) A motor vehicle, as that term is defined in
1524-Section 1-146 of the Illinois Vehicle Code, that is
1525-donated to a corporation, limited liability company,
1526-society, association, foundation, or institution that is
1527-determined by the Department to be organized and operated
1528-exclusively for educational purposes. For purposes of this
1529-exemption, "a corporation, limited liability company,
1530-society, association, foundation, or institution organized
1531-and operated exclusively for educational purposes" means
1532-all tax-supported public schools, private schools that
1533-offer systematic instruction in useful branches of
1534-learning by methods common to public schools and that
1535-compare favorably in their scope and intensity with the
1536-course of study presented in tax-supported schools, and
1537-vocational or technical schools or institutes organized
1538-and operated exclusively to provide a course of study of
1539-
1540-
1541-not less than 6 weeks duration and designed to prepare
1542-individuals to follow a trade or to pursue a manual,
1543-technical, mechanical, industrial, business, or commercial
1544-occupation.
1545-(34) Beginning January 1, 2000, personal property,
1546-including food, purchased through fundraising events for
1547-the benefit of a public or private elementary or secondary
1548-school, a group of those schools, or one or more school
1549-districts if the events are sponsored by an entity
1550-recognized by the school district that consists primarily
1551-of volunteers and includes parents and teachers of the
1552-school children. This paragraph does not apply to
1553-fundraising events (i) for the benefit of private home
1554-instruction or (ii) for which the fundraising entity
1555-purchases the personal property sold at the events from
1556-another individual or entity that sold the property for
1557-the purpose of resale by the fundraising entity and that
1558-profits from the sale to the fundraising entity. This
1559-paragraph is exempt from the provisions of Section 2-70.
1560-(35) Beginning January 1, 2000 and through December
1561-31, 2001, new or used automatic vending machines that
1562-prepare and serve hot food and beverages, including
1563-coffee, soup, and other items, and replacement parts for
1564-these machines. Beginning January 1, 2002 and through June
1565-30, 2003, machines and parts for machines used in
1566-commercial, coin-operated amusement and vending business
1567-
1568-
1569-if a use or occupation tax is paid on the gross receipts
1570-derived from the use of the commercial, coin-operated
1571-amusement and vending machines. This paragraph is exempt
1572-from the provisions of Section 2-70.
1573-(35-5) Beginning August 23, 2001 and through June 30,
1574-2016, food for human consumption that is to be consumed
1575-off the premises where it is sold (other than alcoholic
1576-beverages, soft drinks, and food that has been prepared
1577-for immediate consumption) and prescription and
1578-nonprescription medicines, drugs, medical appliances, and
1579-insulin, urine testing materials, syringes, and needles
1580-used by diabetics, for human use, when purchased for use
1581-by a person receiving medical assistance under Article V
1582-of the Illinois Public Aid Code who resides in a licensed
1583-long-term care facility, as defined in the Nursing Home
1584-Care Act, or a licensed facility as defined in the ID/DD
1585-Community Care Act, the MC/DD Act, or the Specialized
1586-Mental Health Rehabilitation Act of 2013.
1587-(36) Beginning August 2, 2001, computers and
1588-communications equipment utilized for any hospital purpose
1589-and equipment used in the diagnosis, analysis, or
1590-treatment of hospital patients sold to a lessor who leases
1591-the equipment, under a lease of one year or longer
1592-executed or in effect at the time of the purchase, to a
1593-hospital that has been issued an active tax exemption
1594-identification number by the Department under Section 1g
1595-
1596-
1597-of this Act. This paragraph is exempt from the provisions
1598-of Section 2-70.
1599-(37) Beginning August 2, 2001, personal property sold
1600-to a lessor who leases the property, under a lease of one
1601-year or longer executed or in effect at the time of the
1602-purchase, to a governmental body that has been issued an
1603-active tax exemption identification number by the
1604-Department under Section 1g of this Act. This paragraph is
1605-exempt from the provisions of Section 2-70.
1606-(38) Beginning on January 1, 2002 and through June 30,
1607-2016, tangible personal property purchased from an
1608-Illinois retailer by a taxpayer engaged in centralized
1609-purchasing activities in Illinois who will, upon receipt
1610-of the property in Illinois, temporarily store the
1611-property in Illinois (i) for the purpose of subsequently
1612-transporting it outside this State for use or consumption
1613-thereafter solely outside this State or (ii) for the
1614-purpose of being processed, fabricated, or manufactured
1615-into, attached to, or incorporated into other tangible
1616-personal property to be transported outside this State and
1617-thereafter used or consumed solely outside this State. The
1618-Director of Revenue shall, pursuant to rules adopted in
1619-accordance with the Illinois Administrative Procedure Act,
1620-issue a permit to any taxpayer in good standing with the
1621-Department who is eligible for the exemption under this
1622-paragraph (38). The permit issued under this paragraph
1623-
1624-
1625-(38) shall authorize the holder, to the extent and in the
1626-manner specified in the rules adopted under this Act, to
1627-purchase tangible personal property from a retailer exempt
1628-from the taxes imposed by this Act. Taxpayers shall
1629-maintain all necessary books and records to substantiate
1630-the use and consumption of all such tangible personal
1631-property outside of the State of Illinois.
1632-(39) Beginning January 1, 2008, tangible personal
1633-property used in the construction or maintenance of a
1634-community water supply, as defined under Section 3.145 of
1635-the Environmental Protection Act, that is operated by a
1636-not-for-profit corporation that holds a valid water supply
1637-permit issued under Title IV of the Environmental
1638-Protection Act. This paragraph is exempt from the
1639-provisions of Section 2-70.
1640-(40) Beginning January 1, 2010 and continuing through
1641-December 31, 2029, materials, parts, equipment,
1642-components, and furnishings incorporated into or upon an
1643-aircraft as part of the modification, refurbishment,
1644-completion, replacement, repair, or maintenance of the
1645-aircraft. This exemption includes consumable supplies used
1646-in the modification, refurbishment, completion,
1647-replacement, repair, and maintenance of aircraft. However,
1648-until January 1, 2024, this exemption excludes any
1649-materials, parts, equipment, components, and consumable
1650-supplies used in the modification, replacement, repair,
1651-
1652-
1653-and maintenance of aircraft engines or power plants,
1654-whether such engines or power plants are installed or
1655-uninstalled upon any such aircraft. "Consumable supplies"
1656-include, but are not limited to, adhesive, tape,
1657-sandpaper, general purpose lubricants, cleaning solution,
1658-latex gloves, and protective films.
1659-Beginning January 1, 2010 and continuing through
1660-December 31, 2023, this exemption applies only to the sale
1661-of qualifying tangible personal property to persons who
1662-modify, refurbish, complete, replace, or maintain an
1663-aircraft and who (i) hold an Air Agency Certificate and
1664-are empowered to operate an approved repair station by the
1665-Federal Aviation Administration, (ii) have a Class IV
1666-Rating, and (iii) conduct operations in accordance with
1667-Part 145 of the Federal Aviation Regulations. The
1668-exemption does not include aircraft operated by a
1669-commercial air carrier providing scheduled passenger air
1670-service pursuant to authority issued under Part 121 or
1671-Part 129 of the Federal Aviation Regulations. From January
1672-1, 2024 through December 31, 2029, this exemption applies
1673-only to the sale use of qualifying tangible personal
1674-property to by: (A) persons who modify, refurbish,
1675-complete, repair, replace, or maintain aircraft and who
1676-(i) hold an Air Agency Certificate and are empowered to
1677-operate an approved repair station by the Federal Aviation
1678-Administration, (ii) have a Class IV Rating, and (iii)
1679-
1680-
1681-conduct operations in accordance with Part 145 of the
1682-Federal Aviation Regulations; and (B) persons who engage
1683-in the modification, replacement, repair, and maintenance
1684-of aircraft engines or power plants without regard to
1685-whether or not those persons meet the qualifications of
1686-item (A).
1687-The changes made to this paragraph (40) by Public Act
1688-98-534 are declarative of existing law. It is the intent
1689-of the General Assembly that the exemption under this
1690-paragraph (40) applies continuously from January 1, 2010
1691-through December 31, 2024; however, no claim for credit or
1692-refund is allowed for taxes paid as a result of the
1693-disallowance of this exemption on or after January 1, 2015
1694-and prior to February 5, 2020 (the effective date of
1695-Public Act 101-629).
1696-(41) Tangible personal property sold to a
1697-public-facilities corporation, as described in Section
1698-11-65-10 of the Illinois Municipal Code, for purposes of
1699-constructing or furnishing a municipal convention hall,
1700-but only if the legal title to the municipal convention
1701-hall is transferred to the municipality without any
1702-further consideration by or on behalf of the municipality
1703-at the time of the completion of the municipal convention
1704-hall or upon the retirement or redemption of any bonds or
1705-other debt instruments issued by the public-facilities
1706-corporation in connection with the development of the
1707-
1708-
1709-municipal convention hall. This exemption includes
1710-existing public-facilities corporations as provided in
1711-Section 11-65-25 of the Illinois Municipal Code. This
1712-paragraph is exempt from the provisions of Section 2-70.
1713-(42) Beginning January 1, 2017 and through December
1714-31, 2026, menstrual pads, tampons, and menstrual cups.
1715-(43) Merchandise that is subject to the Rental
1716-Purchase Agreement Occupation and Use Tax. The purchaser
1717-must certify that the item is purchased to be rented
1718-subject to a rental-purchase rental purchase agreement, as
1719-defined in the Rental-Purchase Rental Purchase Agreement
1720-Act, and provide proof of registration under the Rental
1721-Purchase Agreement Occupation and Use Tax Act. This
1722-paragraph is exempt from the provisions of Section 2-70.
1723-(44) Qualified tangible personal property used in the
1724-construction or operation of a data center that has been
1725-granted a certificate of exemption by the Department of
1726-Commerce and Economic Opportunity, whether that tangible
1727-personal property is purchased by the owner, operator, or
1728-tenant of the data center or by a contractor or
1729-subcontractor of the owner, operator, or tenant. Data
1730-centers that would have qualified for a certificate of
1731-exemption prior to January 1, 2020 had Public Act 101-31
1732-been in effect, may apply for and obtain an exemption for
1733-subsequent purchases of computer equipment or enabling
1734-software purchased or leased to upgrade, supplement, or
1735-
1736-
1737-replace computer equipment or enabling software purchased
1738-or leased in the original investment that would have
1739-qualified.
1740-The Department of Commerce and Economic Opportunity
1741-shall grant a certificate of exemption under this item
1742-(44) to qualified data centers as defined by Section
1743-605-1025 of the Department of Commerce and Economic
1744-Opportunity Law of the Civil Administrative Code of
1745-Illinois.
1746-For the purposes of this item (44):
1747-"Data center" means a building or a series of
1748-buildings rehabilitated or constructed to house
1749-working servers in one physical location or multiple
1750-sites within the State of Illinois.
1751-"Qualified tangible personal property" means:
1752-electrical systems and equipment; climate control and
1753-chilling equipment and systems; mechanical systems and
1754-equipment; monitoring and secure systems; emergency
1755-generators; hardware; computers; servers; data storage
1756-devices; network connectivity equipment; racks;
1757-cabinets; telecommunications cabling infrastructure;
1758-raised floor systems; peripheral components or
1759-systems; software; mechanical, electrical, or plumbing
1760-systems; battery systems; cooling systems and towers;
1761-temperature control systems; other cabling; and other
1762-data center infrastructure equipment and systems
1763-
1764-
1765-necessary to operate qualified tangible personal
1766-property, including fixtures; and component parts of
1767-any of the foregoing, including installation,
1768-maintenance, repair, refurbishment, and replacement of
1769-qualified tangible personal property to generate,
1770-transform, transmit, distribute, or manage electricity
1771-necessary to operate qualified tangible personal
1772-property; and all other tangible personal property
1773-that is essential to the operations of a computer data
1774-center. The term "qualified tangible personal
1775-property" also includes building materials physically
1776-incorporated into the qualifying data center. To
1777-document the exemption allowed under this Section, the
1778-retailer must obtain from the purchaser a copy of the
1779-certificate of eligibility issued by the Department of
1780-Commerce and Economic Opportunity.
1781-This item (44) is exempt from the provisions of
1782-Section 2-70.
1783-(45) Beginning January 1, 2020 and through December
1784-31, 2020, sales of tangible personal property made by a
1785-marketplace seller over a marketplace for which tax is due
1786-under this Act but for which use tax has been collected and
1787-remitted to the Department by a marketplace facilitator
1788-under Section 2d of the Use Tax Act are exempt from tax
1789-under this Act. A marketplace seller claiming this
1790-exemption shall maintain books and records demonstrating
1791-
1792-
1793-that the use tax on such sales has been collected and
1794-remitted by a marketplace facilitator. Marketplace sellers
1795-that have properly remitted tax under this Act on such
1796-sales may file a claim for credit as provided in Section 6
1797-of this Act. No claim is allowed, however, for such taxes
1798-for which a credit or refund has been issued to the
1799-marketplace facilitator under the Use Tax Act, or for
1800-which the marketplace facilitator has filed a claim for
1801-credit or refund under the Use Tax Act.
1802-(46) Beginning July 1, 2022, breast pumps, breast pump
1803-collection and storage supplies, and breast pump kits.
1804-This item (46) is exempt from the provisions of Section
1805-2-70. As used in this item (46):
1806-"Breast pump" means an electrically controlled or
1807-manually controlled pump device designed or marketed to be
1808-used to express milk from a human breast during lactation,
1809-including the pump device and any battery, AC adapter, or
1810-other power supply unit that is used to power the pump
1811-device and is packaged and sold with the pump device at the
1812-time of sale.
1813-"Breast pump collection and storage supplies" means
1814-items of tangible personal property designed or marketed
1815-to be used in conjunction with a breast pump to collect
1816-milk expressed from a human breast and to store collected
1817-milk until it is ready for consumption.
1818-"Breast pump collection and storage supplies"
1819-
1820-
1821-includes, but is not limited to: breast shields and breast
1822-shield connectors; breast pump tubes and tubing adapters;
1823-breast pump valves and membranes; backflow protectors and
1824-backflow protector adaptors; bottles and bottle caps
1825-specific to the operation of the breast pump; and breast
1826-milk storage bags.
1827-"Breast pump collection and storage supplies" does not
1828-include: (1) bottles and bottle caps not specific to the
1829-operation of the breast pump; (2) breast pump travel bags
1830-and other similar carrying accessories, including ice
1831-packs, labels, and other similar products; (3) breast pump
1832-cleaning supplies; (4) nursing bras, bra pads, breast
1833-shells, and other similar products; and (5) creams,
1834-ointments, and other similar products that relieve
1835-breastfeeding-related symptoms or conditions of the
1836-breasts or nipples, unless sold as part of a breast pump
1837-kit that is pre-packaged by the breast pump manufacturer
1838-or distributor.
1839-"Breast pump kit" means a kit that: (1) contains no
1840-more than a breast pump, breast pump collection and
1841-storage supplies, a rechargeable battery for operating the
1842-breast pump, a breastmilk cooler, bottle stands, ice
1843-packs, and a breast pump carrying case; and (2) is
1844-pre-packaged as a breast pump kit by the breast pump
1845-manufacturer or distributor.
1846-(47) Tangible personal property sold by or on behalf
1847-
1848-
1849-of the State Treasurer pursuant to the Revised Uniform
1850-Unclaimed Property Act. This item (47) is exempt from the
1851-provisions of Section 2-70.
1852-(48) Beginning on January 1, 2024, tangible personal
1853-property purchased by an active duty member of the armed
1854-forces of the United States who presents valid military
1855-identification and purchases the property using a form of
1856-payment where the federal government is the payor. The
1857-member of the armed forces must complete, at the point of
1858-sale, a form prescribed by the Department of Revenue
1859-documenting that the transaction is eligible for the
1860-exemption under this paragraph. Retailers must keep the
1861-form as documentation of the exemption in their records
1862-for a period of not less than 6 years. "Armed forces of the
1863-United States" means the United States Army, Navy, Air
1864-Force, Marine Corps, or Coast Guard. This paragraph is
1865-exempt from the provisions of Section 2-70.
1866-(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
1867-102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
1868-Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
1869-5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
1870-5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
1871-6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
1872-12-12-23.)
1873-Section 20. The Motor Fuel Tax Law is amended by changing
1874-
1875-
1876-Section 2 as follows:
1877-(35 ILCS 505/2) (from Ch. 120, par. 418)
1878-Sec. 2. A tax is imposed on the privilege of operating
1879-motor vehicles upon the public highways and recreational-type
1880-watercraft upon the waters of this State.
1881-(a) Prior to August 1, 1989, the tax is imposed at the rate
1882-of 13 cents per gallon on all motor fuel used in motor vehicles
1883-operating on the public highways and recreational type
1884-watercraft operating upon the waters of this State. Beginning
1885-on August 1, 1989 and until January 1, 1990, the rate of the
1886-tax imposed in this paragraph shall be 16 cents per gallon.
1887-Beginning January 1, 1990 and until July 1, 2019, the rate of
1888-tax imposed in this paragraph, including the tax on compressed
1889-natural gas, shall be 19 cents per gallon. Beginning July 1,
1890-2019 and until July 1, 2020, the rate of tax imposed in this
1891-paragraph shall be 38 cents per gallon. Beginning July 1, 2020
1892-and until July 1, 2021, the rate of tax imposed in this
1893-paragraph shall be 38.7 cents per gallon. Beginning July 1,
1894-2021 and until January 1, 2023, the rate of tax imposed in this
1895-paragraph shall be 39.2 cents per gallon. On January 1, 2023,
1896-the rate of tax imposed in this paragraph shall be increased by
1897-an amount equal to the percentage increase, if any, in the
1898-Consumer Price Index for All Urban Consumers for all items
1899-published by the United States Department of Labor for the 12
1900-months ending in September of 2022. On July 1, 2023, and on
1901-
1902-
1903-July 1 of each subsequent year, the rate of tax imposed in this
1904-paragraph shall be increased by an amount equal to the
1905-percentage increase, if any, in the Consumer Price Index for
1906-All Urban Consumers for all items published by the United
1907-States Department of Labor for the 12 months ending in March of
1908-the year in which the increase takes place. The percentage
1909-increase in the Consumer Price Index shall be calculated as
1910-follows: (1) calculate the average Consumer Price Index for
1911-the full 12 months ending in March of the year in which the
1912-increase takes place; (2) calculate the average Consumer Price
1913-Index for the full 12 months ending in March of the year
1914-immediately preceding the year in which the increase takes
1915-place; (3) calculate the percentage increase, if any, in the
1916-current-year average determined under item (1) over the
1917-preceding-year average determined under item (2). The rate
1918-shall be rounded to the nearest one-tenth of one cent.
1919-(a-5) Beginning on July 1, 2022 and through December 31,
1920-2022, each retailer of motor fuel shall cause the following
1921-notice to be posted in a prominently visible place on each
1922-retail dispensing device that is used to dispense motor fuel
1923-in the State of Illinois: "As of July 1, 2022, the State of
1924-Illinois has suspended the inflation adjustment to the motor
1925-fuel tax through December 31, 2022. The price on this pump
1926-should reflect the suspension of the tax increase." The notice
1927-shall be printed in bold print on a sign that is no smaller
1928-than 4 inches by 8 inches. The sign shall be clearly visible to
1929-
1930-
1931-customers. Any retailer who fails to post or maintain a
1932-required sign through December 31, 2022 is guilty of a petty
1933-offense for which the fine shall be $500 per day per each
1934-retail premises where a violation occurs.
1935-(b) Until July 1, 2019, the tax on the privilege of
1936-operating motor vehicles which use diesel fuel, liquefied
1937-natural gas, or propane shall be the rate according to
1938-paragraph (a) plus an additional 2 1/2 cents per gallon.
1939-Beginning July 1, 2019, the tax on the privilege of operating
1940-motor vehicles which use diesel fuel, liquefied natural gas,
1941-or propane shall be the rate according to subsection (a) plus
1942-an additional 7.5 cents per gallon. "Diesel fuel" is defined
1943-as any product intended for use or offered for sale as a fuel
1944-for engines in which the fuel is injected into the combustion
1945-chamber and ignited by pressure without electric spark.
1946-(c) A tax is imposed upon the privilege of engaging in the
1947-business of selling motor fuel as a retailer or reseller on all
1948-motor fuel used in motor vehicles operating on the public
1949-highways and recreational type watercraft operating upon the
1950-waters of this State: (1) at the rate of 3 cents per gallon on
1951-motor fuel owned or possessed by such retailer or reseller at
1952-12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
1953-per gallon on motor fuel owned or possessed by such retailer or
1954-reseller at 12:01 A.M. on January 1, 1990.
1955-Retailers and resellers who are subject to this additional
1956-tax shall be required to inventory such motor fuel and pay this
1957-
1958-
1959-additional tax in a manner prescribed by the Department of
1960-Revenue.
1961-The tax imposed in this paragraph (c) shall be in addition
1962-to all other taxes imposed by the State of Illinois or any unit
1963-of local government in this State.
1964-(d) Except as provided in Section 2a, the collection of a
1965-tax based on gallonage of gasoline used for the propulsion of
1966-any aircraft is prohibited on and after October 1, 1979, and
1967-the collection of a tax based on gallonage of special fuel used
1968-for the propulsion of any aircraft is prohibited on and after
1969-December 1, 2019.
1970-(e) The collection of a tax, based on gallonage of all
1971-products commonly or commercially known or sold as 1-K
1972-kerosene, regardless of its classification or uses, is
1973-prohibited (i) on and after July 1, 1992 until December 31,
1974-1999, except when the 1-K kerosene is either: (1) delivered
1975-into bulk storage facilities of a bulk user, or (2) delivered
1976-directly into the fuel supply tanks of motor vehicles and (ii)
1977-on and after January 1, 2000. Beginning on January 1, 2000, the
1978-collection of a tax, based on gallonage of all products
1979-commonly or commercially known or sold as 1-K kerosene,
1980-regardless of its classification or uses, is prohibited except
1981-when the 1-K kerosene is delivered directly into a storage
1982-tank that is located at a facility that has withdrawal
1983-facilities that are readily accessible to and are capable of
1984-dispensing 1-K kerosene into the fuel supply tanks of motor
1985-
1986-
1987-vehicles. For purposes of this subsection (e), a facility is
1988-considered to have withdrawal facilities that are not "readily
1989-accessible to and capable of dispensing 1-K kerosene into the
1990-fuel supply tanks of motor vehicles" only if the 1-K kerosene
1991-is delivered from: (i) a dispenser hose that is short enough so
1992-that it will not reach the fuel supply tank of a motor vehicle
1993-or (ii) a dispenser that is enclosed by a fence or other
1994-physical barrier so that a vehicle cannot pull alongside the
1995-dispenser to permit fueling.
1996-Any person who sells or uses 1-K kerosene for use in motor
1997-vehicles upon which the tax imposed by this Law has not been
1998-paid shall be liable for any tax due on the sales or use of 1-K
1999-kerosene.
2000-As used in this Section, "Consumer Price Index" means the
2001-index published by the Bureau of Labor Statistics of the
2002-United States Department of Labor that measures the average
2003-change in prices of goods and services purchased by all urban
2004-consumers, United States city average, all items, 1982-84 =
2005-100.
2006-(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
2007-101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
32+SB3426 Enrolled- 2 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 2 - LRB103 37529 HLH 67652 b
33+ SB3426 Enrolled - 2 - LRB103 37529 HLH 67652 b
34+1 support of arts or cultural programming, activities, or
35+2 services. These organizations include, but are not limited to,
36+3 music and dramatic arts organizations such as symphony
37+4 orchestras and theatrical groups, arts and cultural service
38+5 organizations, local arts councils, visual arts organizations,
39+6 and media arts organizations. On and after July 1, 2001 (the
40+7 effective date of Public Act 92-35), however, an entity
41+8 otherwise eligible for this exemption shall not make tax-free
42+9 purchases unless it has an active identification number issued
43+10 by the Department.
44+11 (4) Legal tender, currency, medallions, or gold or silver
45+12 coinage issued by the State of Illinois, the government of the
46+13 United States of America, or the government of any foreign
47+14 country, and bullion.
48+15 (5) Until July 1, 2003 and beginning again on September 1,
49+16 2004 through August 30, 2014, graphic arts machinery and
50+17 equipment, including repair and replacement parts, both new
51+18 and used, and including that manufactured on special order or
52+19 purchased for lease, certified by the purchaser to be used
53+20 primarily for graphic arts production. Equipment includes
54+21 chemicals or chemicals acting as catalysts but only if the
55+22 chemicals or chemicals acting as catalysts effect a direct and
56+23 immediate change upon a graphic arts product. Beginning on
57+24 July 1, 2017, graphic arts machinery and equipment is included
58+25 in the manufacturing and assembling machinery and equipment
59+26 exemption under Section 2 of this Act.
60+
61+
62+
63+
64+
65+ SB3426 Enrolled - 2 - LRB103 37529 HLH 67652 b
66+
67+
68+SB3426 Enrolled- 3 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 3 - LRB103 37529 HLH 67652 b
69+ SB3426 Enrolled - 3 - LRB103 37529 HLH 67652 b
70+1 (6) Personal property purchased from a teacher-sponsored
71+2 student organization affiliated with an elementary or
72+3 secondary school located in Illinois.
73+4 (7) Farm machinery and equipment, both new and used,
74+5 including that manufactured on special order, certified by the
75+6 purchaser to be used primarily for production agriculture or
76+7 State or federal agricultural programs, including individual
77+8 replacement parts for the machinery and equipment, including
78+9 machinery and equipment purchased for lease, and including
79+10 implements of husbandry defined in Section 1-130 of the
80+11 Illinois Vehicle Code, farm machinery and agricultural
81+12 chemical and fertilizer spreaders, and nurse wagons required
82+13 to be registered under Section 3-809 of the Illinois Vehicle
83+14 Code, but excluding other motor vehicles required to be
84+15 registered under the Illinois Vehicle Code. Horticultural
85+16 polyhouses or hoop houses used for propagating, growing, or
86+17 overwintering plants shall be considered farm machinery and
87+18 equipment under this item (7). Agricultural chemical tender
88+19 tanks and dry boxes shall include units sold separately from a
89+20 motor vehicle required to be licensed and units sold mounted
90+21 on a motor vehicle required to be licensed if the selling price
91+22 of the tender is separately stated.
92+23 Farm machinery and equipment shall include precision
93+24 farming equipment that is installed or purchased to be
94+25 installed on farm machinery and equipment, including, but not
95+26 limited to, tractors, harvesters, sprayers, planters, seeders,
96+
97+
98+
99+
100+
101+ SB3426 Enrolled - 3 - LRB103 37529 HLH 67652 b
102+
103+
104+SB3426 Enrolled- 4 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 4 - LRB103 37529 HLH 67652 b
105+ SB3426 Enrolled - 4 - LRB103 37529 HLH 67652 b
106+1 or spreaders. Precision farming equipment includes, but is not
107+2 limited to, soil testing sensors, computers, monitors,
108+3 software, global positioning and mapping systems, and other
109+4 such equipment.
110+5 Farm machinery and equipment also includes computers,
111+6 sensors, software, and related equipment used primarily in the
112+7 computer-assisted operation of production agriculture
113+8 facilities, equipment, and activities such as, but not limited
114+9 to, the collection, monitoring, and correlation of animal and
115+10 crop data for the purpose of formulating animal diets and
116+11 agricultural chemicals.
117+12 Beginning on January 1, 2024, farm machinery and equipment
118+13 also includes electrical power generation equipment used
119+14 primarily for production agriculture.
120+15 This item (7) is exempt from the provisions of Section
121+16 3-75.
122+17 (8) Until June 30, 2013, fuel and petroleum products sold
123+18 to or used by an air common carrier, certified by the carrier
124+19 to be used for consumption, shipment, or storage in the
125+20 conduct of its business as an air common carrier, for a flight
126+21 destined for or returning from a location or locations outside
127+22 the United States without regard to previous or subsequent
128+23 domestic stopovers.
129+24 Beginning July 1, 2013, fuel and petroleum products sold
130+25 to or used by an air carrier, certified by the carrier to be
131+26 used for consumption, shipment, or storage in the conduct of
132+
133+
134+
135+
136+
137+ SB3426 Enrolled - 4 - LRB103 37529 HLH 67652 b
138+
139+
140+SB3426 Enrolled- 5 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 5 - LRB103 37529 HLH 67652 b
141+ SB3426 Enrolled - 5 - LRB103 37529 HLH 67652 b
142+1 its business as an air common carrier, for a flight that (i) is
143+2 engaged in foreign trade or is engaged in trade between the
144+3 United States and any of its possessions and (ii) transports
145+4 at least one individual or package for hire from the city of
146+5 origination to the city of final destination on the same
147+6 aircraft, without regard to a change in the flight number of
148+7 that aircraft.
149+8 (9) Proceeds of mandatory service charges separately
150+9 stated on customers' bills for the purchase and consumption of
151+10 food and beverages acquired as an incident to the purchase of a
152+11 service from a serviceman, to the extent that the proceeds of
153+12 the service charge are in fact turned over as tips or as a
154+13 substitute for tips to the employees who participate directly
155+14 in preparing, serving, hosting or cleaning up the food or
156+15 beverage function with respect to which the service charge is
157+16 imposed.
158+17 (10) Until July 1, 2003, oil field exploration, drilling,
159+18 and production equipment, including (i) rigs and parts of
160+19 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
161+20 pipe and tubular goods, including casing and drill strings,
162+21 (iii) pumps and pump-jack units, (iv) storage tanks and flow
163+22 lines, (v) any individual replacement part for oil field
164+23 exploration, drilling, and production equipment, and (vi)
165+24 machinery and equipment purchased for lease; but excluding
166+25 motor vehicles required to be registered under the Illinois
167+26 Vehicle Code.
168+
169+
170+
171+
172+
173+ SB3426 Enrolled - 5 - LRB103 37529 HLH 67652 b
174+
175+
176+SB3426 Enrolled- 6 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 6 - LRB103 37529 HLH 67652 b
177+ SB3426 Enrolled - 6 - LRB103 37529 HLH 67652 b
178+1 (11) Proceeds from the sale of photoprocessing machinery
179+2 and equipment, including repair and replacement parts, both
180+3 new and used, including that manufactured on special order,
181+4 certified by the purchaser to be used primarily for
182+5 photoprocessing, and including photoprocessing machinery and
183+6 equipment purchased for lease.
184+7 (12) Until July 1, 2028, coal and aggregate exploration,
185+8 mining, off-highway hauling, processing, maintenance, and
186+9 reclamation equipment, including replacement parts and
187+10 equipment, and including equipment purchased for lease, but
188+11 excluding motor vehicles required to be registered under the
189+12 Illinois Vehicle Code. The changes made to this Section by
190+13 Public Act 97-767 apply on and after July 1, 2003, but no claim
191+14 for credit or refund is allowed on or after August 16, 2013
192+15 (the effective date of Public Act 98-456) for such taxes paid
193+16 during the period beginning July 1, 2003 and ending on August
194+17 16, 2013 (the effective date of Public Act 98-456).
195+18 (13) Semen used for artificial insemination of livestock
196+19 for direct agricultural production.
197+20 (14) Horses, or interests in horses, registered with and
198+21 meeting the requirements of any of the Arabian Horse Club
199+22 Registry of America, Appaloosa Horse Club, American Quarter
200+23 Horse Association, United States Trotting Association, or
201+24 Jockey Club, as appropriate, used for purposes of breeding or
202+25 racing for prizes. This item (14) is exempt from the
203+26 provisions of Section 3-75, and the exemption provided for
204+
205+
206+
207+
208+
209+ SB3426 Enrolled - 6 - LRB103 37529 HLH 67652 b
210+
211+
212+SB3426 Enrolled- 7 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 7 - LRB103 37529 HLH 67652 b
213+ SB3426 Enrolled - 7 - LRB103 37529 HLH 67652 b
214+1 under this item (14) applies for all periods beginning May 30,
215+2 1995, but no claim for credit or refund is allowed on or after
216+3 January 1, 2008 (the effective date of Public Act 95-88) for
217+4 such taxes paid during the period beginning May 30, 2000 and
218+5 ending on January 1, 2008 (the effective date of Public Act
219+6 95-88).
220+7 (15) Computers and communications equipment utilized for
221+8 any hospital purpose and equipment used in the diagnosis,
222+9 analysis, or treatment of hospital patients purchased by a
223+10 lessor who leases the equipment, under a lease of one year or
224+11 longer executed or in effect at the time the lessor would
225+12 otherwise be subject to the tax imposed by this Act, to a
226+13 hospital that has been issued an active tax exemption
227+14 identification number by the Department under Section 1g of
228+15 the Retailers' Occupation Tax Act. If the equipment is leased
229+16 in a manner that does not qualify for this exemption or is used
230+17 in any other non-exempt manner, the lessor shall be liable for
231+18 the tax imposed under this Act or the Use Tax Act, as the case
232+19 may be, based on the fair market value of the property at the
233+20 time the non-qualifying use occurs. No lessor shall collect or
234+21 attempt to collect an amount (however designated) that
235+22 purports to reimburse that lessor for the tax imposed by this
236+23 Act or the Use Tax Act, as the case may be, if the tax has not
237+24 been paid by the lessor. If a lessor improperly collects any
238+25 such amount from the lessee, the lessee shall have a legal
239+26 right to claim a refund of that amount from the lessor. If,
240+
241+
242+
243+
244+
245+ SB3426 Enrolled - 7 - LRB103 37529 HLH 67652 b
246+
247+
248+SB3426 Enrolled- 8 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 8 - LRB103 37529 HLH 67652 b
249+ SB3426 Enrolled - 8 - LRB103 37529 HLH 67652 b
250+1 however, that amount is not refunded to the lessee for any
251+2 reason, the lessor is liable to pay that amount to the
252+3 Department.
253+4 (16) Personal property purchased by a lessor who leases
254+5 the property, under a lease of one year or longer executed or
255+6 in effect at the time the lessor would otherwise be subject to
256+7 the tax imposed by this Act, to a governmental body that has
257+8 been issued an active tax exemption identification number by
258+9 the Department under Section 1g of the Retailers' Occupation
259+10 Tax Act. If the property is leased in a manner that does not
260+11 qualify for this exemption or is used in any other non-exempt
261+12 manner, the lessor shall be liable for the tax imposed under
262+13 this Act or the Use Tax Act, as the case may be, based on the
263+14 fair market value of the property at the time the
264+15 non-qualifying use occurs. No lessor shall collect or attempt
265+16 to collect an amount (however designated) that purports to
266+17 reimburse that lessor for the tax imposed by this Act or the
267+18 Use Tax Act, as the case may be, if the tax has not been paid
268+19 by the lessor. If a lessor improperly collects any such amount
269+20 from the lessee, the lessee shall have a legal right to claim a
270+21 refund of that amount from the lessor. If, however, that
271+22 amount is not refunded to the lessee for any reason, the lessor
272+23 is liable to pay that amount to the Department.
273+24 (17) Beginning with taxable years ending on or after
274+25 December 31, 1995 and ending with taxable years ending on or
275+26 before December 31, 2004, personal property that is donated
276+
277+
278+
279+
280+
281+ SB3426 Enrolled - 8 - LRB103 37529 HLH 67652 b
282+
283+
284+SB3426 Enrolled- 9 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 9 - LRB103 37529 HLH 67652 b
285+ SB3426 Enrolled - 9 - LRB103 37529 HLH 67652 b
286+1 for disaster relief to be used in a State or federally declared
287+2 disaster area in Illinois or bordering Illinois by a
288+3 manufacturer or retailer that is registered in this State to a
289+4 corporation, society, association, foundation, or institution
290+5 that has been issued a sales tax exemption identification
291+6 number by the Department that assists victims of the disaster
292+7 who reside within the declared disaster area.
293+8 (18) Beginning with taxable years ending on or after
294+9 December 31, 1995 and ending with taxable years ending on or
295+10 before December 31, 2004, personal property that is used in
296+11 the performance of infrastructure repairs in this State,
297+12 including, but not limited to, municipal roads and streets,
298+13 access roads, bridges, sidewalks, waste disposal systems,
299+14 water and sewer line extensions, water distribution and
300+15 purification facilities, storm water drainage and retention
301+16 facilities, and sewage treatment facilities, resulting from a
302+17 State or federally declared disaster in Illinois or bordering
303+18 Illinois when such repairs are initiated on facilities located
304+19 in the declared disaster area within 6 months after the
305+20 disaster.
306+21 (19) Beginning July 1, 1999, game or game birds purchased
307+22 at a "game breeding and hunting preserve area" as that term is
308+23 used in the Wildlife Code. This paragraph is exempt from the
309+24 provisions of Section 3-75.
310+25 (20) A motor vehicle, as that term is defined in Section
311+26 1-146 of the Illinois Vehicle Code, that is donated to a
312+
313+
314+
315+
316+
317+ SB3426 Enrolled - 9 - LRB103 37529 HLH 67652 b
318+
319+
320+SB3426 Enrolled- 10 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 10 - LRB103 37529 HLH 67652 b
321+ SB3426 Enrolled - 10 - LRB103 37529 HLH 67652 b
322+1 corporation, limited liability company, society, association,
323+2 foundation, or institution that is determined by the
324+3 Department to be organized and operated exclusively for
325+4 educational purposes. For purposes of this exemption, "a
326+5 corporation, limited liability company, society, association,
327+6 foundation, or institution organized and operated exclusively
328+7 for educational purposes" means all tax-supported public
329+8 schools, private schools that offer systematic instruction in
330+9 useful branches of learning by methods common to public
331+10 schools and that compare favorably in their scope and
332+11 intensity with the course of study presented in tax-supported
333+12 schools, and vocational or technical schools or institutes
334+13 organized and operated exclusively to provide a course of
335+14 study of not less than 6 weeks duration and designed to prepare
336+15 individuals to follow a trade or to pursue a manual,
337+16 technical, mechanical, industrial, business, or commercial
338+17 occupation.
339+18 (21) Beginning January 1, 2000, personal property,
340+19 including food, purchased through fundraising events for the
341+20 benefit of a public or private elementary or secondary school,
342+21 a group of those schools, or one or more school districts if
343+22 the events are sponsored by an entity recognized by the school
344+23 district that consists primarily of volunteers and includes
345+24 parents and teachers of the school children. This paragraph
346+25 does not apply to fundraising events (i) for the benefit of
347+26 private home instruction or (ii) for which the fundraising
348+
349+
350+
351+
352+
353+ SB3426 Enrolled - 10 - LRB103 37529 HLH 67652 b
354+
355+
356+SB3426 Enrolled- 11 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 11 - LRB103 37529 HLH 67652 b
357+ SB3426 Enrolled - 11 - LRB103 37529 HLH 67652 b
358+1 entity purchases the personal property sold at the events from
359+2 another individual or entity that sold the property for the
360+3 purpose of resale by the fundraising entity and that profits
361+4 from the sale to the fundraising entity. This paragraph is
362+5 exempt from the provisions of Section 3-75.
363+6 (22) Beginning January 1, 2000 and through December 31,
364+7 2001, new or used automatic vending machines that prepare and
365+8 serve hot food and beverages, including coffee, soup, and
366+9 other items, and replacement parts for these machines.
367+10 Beginning January 1, 2002 and through June 30, 2003, machines
368+11 and parts for machines used in commercial, coin-operated
369+12 amusement and vending business if a use or occupation tax is
370+13 paid on the gross receipts derived from the use of the
371+14 commercial, coin-operated amusement and vending machines. This
372+15 paragraph is exempt from the provisions of Section 3-75.
373+16 (23) Beginning August 23, 2001 and through June 30, 2016,
374+17 food for human consumption that is to be consumed off the
375+18 premises where it is sold (other than alcoholic beverages,
376+19 soft drinks, and food that has been prepared for immediate
377+20 consumption) and prescription and nonprescription medicines,
378+21 drugs, medical appliances, and insulin, urine testing
379+22 materials, syringes, and needles used by diabetics, for human
380+23 use, when purchased for use by a person receiving medical
381+24 assistance under Article V of the Illinois Public Aid Code who
382+25 resides in a licensed long-term care facility, as defined in
383+26 the Nursing Home Care Act, or in a licensed facility as defined
384+
385+
386+
387+
388+
389+ SB3426 Enrolled - 11 - LRB103 37529 HLH 67652 b
390+
391+
392+SB3426 Enrolled- 12 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 12 - LRB103 37529 HLH 67652 b
393+ SB3426 Enrolled - 12 - LRB103 37529 HLH 67652 b
394+1 in the ID/DD Community Care Act, the MC/DD Act, or the
395+2 Specialized Mental Health Rehabilitation Act of 2013.
396+3 (24) Beginning on August 2, 2001 (the effective date of
397+4 Public Act 92-227), computers and communications equipment
398+5 utilized for any hospital purpose and equipment used in the
399+6 diagnosis, analysis, or treatment of hospital patients
400+7 purchased by a lessor who leases the equipment, under a lease
401+8 of one year or longer executed or in effect at the time the
402+9 lessor would otherwise be subject to the tax imposed by this
403+10 Act, to a hospital that has been issued an active tax exemption
404+11 identification number by the Department under Section 1g of
405+12 the Retailers' Occupation Tax Act. If the equipment is leased
406+13 in a manner that does not qualify for this exemption or is used
407+14 in any other nonexempt manner, the lessor shall be liable for
408+15 the tax imposed under this Act or the Use Tax Act, as the case
409+16 may be, based on the fair market value of the property at the
410+17 time the nonqualifying use occurs. No lessor shall collect or
411+18 attempt to collect an amount (however designated) that
412+19 purports to reimburse that lessor for the tax imposed by this
413+20 Act or the Use Tax Act, as the case may be, if the tax has not
414+21 been paid by the lessor. If a lessor improperly collects any
415+22 such amount from the lessee, the lessee shall have a legal
416+23 right to claim a refund of that amount from the lessor. If,
417+24 however, that amount is not refunded to the lessee for any
418+25 reason, the lessor is liable to pay that amount to the
419+26 Department. This paragraph is exempt from the provisions of
420+
421+
422+
423+
424+
425+ SB3426 Enrolled - 12 - LRB103 37529 HLH 67652 b
426+
427+
428+SB3426 Enrolled- 13 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 13 - LRB103 37529 HLH 67652 b
429+ SB3426 Enrolled - 13 - LRB103 37529 HLH 67652 b
430+1 Section 3-75.
431+2 (25) Beginning on August 2, 2001 (the effective date of
432+3 Public Act 92-227), personal property purchased by a lessor
433+4 who leases the property, under a lease of one year or longer
434+5 executed or in effect at the time the lessor would otherwise be
435+6 subject to the tax imposed by this Act, to a governmental body
436+7 that has been issued an active tax exemption identification
437+8 number by the Department under Section 1g of the Retailers'
438+9 Occupation Tax Act. If the property is leased in a manner that
439+10 does not qualify for this exemption or is used in any other
440+11 nonexempt manner, the lessor shall be liable for the tax
441+12 imposed under this Act or the Use Tax Act, as the case may be,
442+13 based on the fair market value of the property at the time the
443+14 nonqualifying use occurs. No lessor shall collect or attempt
444+15 to collect an amount (however designated) that purports to
445+16 reimburse that lessor for the tax imposed by this Act or the
446+17 Use Tax Act, as the case may be, if the tax has not been paid
447+18 by the lessor. If a lessor improperly collects any such amount
448+19 from the lessee, the lessee shall have a legal right to claim a
449+20 refund of that amount from the lessor. If, however, that
450+21 amount is not refunded to the lessee for any reason, the lessor
451+22 is liable to pay that amount to the Department. This paragraph
452+23 is exempt from the provisions of Section 3-75.
453+24 (26) Beginning January 1, 2008, tangible personal property
454+25 used in the construction or maintenance of a community water
455+26 supply, as defined under Section 3.145 of the Environmental
456+
457+
458+
459+
460+
461+ SB3426 Enrolled - 13 - LRB103 37529 HLH 67652 b
462+
463+
464+SB3426 Enrolled- 14 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 14 - LRB103 37529 HLH 67652 b
465+ SB3426 Enrolled - 14 - LRB103 37529 HLH 67652 b
466+1 Protection Act, that is operated by a not-for-profit
467+2 corporation that holds a valid water supply permit issued
468+3 under Title IV of the Environmental Protection Act. This
469+4 paragraph is exempt from the provisions of Section 3-75.
470+5 (27) Beginning January 1, 2010 and continuing through
471+6 December 31, 2029, materials, parts, equipment, components,
472+7 and furnishings incorporated into or upon an aircraft as part
473+8 of the modification, refurbishment, completion, replacement,
474+9 repair, or maintenance of the aircraft. This exemption
475+10 includes consumable supplies used in the modification,
476+11 refurbishment, completion, replacement, repair, and
477+12 maintenance of aircraft. However, until January 1, 2024, this
478+13 exemption excludes any materials, parts, equipment,
479+14 components, and consumable supplies used in the modification,
480+15 replacement, repair, and maintenance of aircraft engines or
481+16 power plants, whether such engines or power plants are
482+17 installed or uninstalled upon any such aircraft. "Consumable
483+18 supplies" include, but are not limited to, adhesive, tape,
484+19 sandpaper, general purpose lubricants, cleaning solution,
485+20 latex gloves, and protective films.
486+21 Beginning January 1, 2010 and continuing through December
487+22 31, 2023, this exemption applies only to the use of qualifying
488+23 tangible personal property transferred incident to the
489+24 modification, refurbishment, completion, replacement, repair,
490+25 or maintenance of aircraft by persons who (i) hold an Air
491+26 Agency Certificate and are empowered to operate an approved
492+
493+
494+
495+
496+
497+ SB3426 Enrolled - 14 - LRB103 37529 HLH 67652 b
498+
499+
500+SB3426 Enrolled- 15 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 15 - LRB103 37529 HLH 67652 b
501+ SB3426 Enrolled - 15 - LRB103 37529 HLH 67652 b
502+1 repair station by the Federal Aviation Administration, (ii)
503+2 have a Class IV Rating, and (iii) conduct operations in
504+3 accordance with Part 145 of the Federal Aviation Regulations.
505+4 From January 1, 2024 through December 31, 2029, this exemption
506+5 applies only to the use of qualifying tangible personal
507+6 property transferred incident to by: (A) the modification,
508+7 refurbishment, completion, repair, replacement, or maintenance
509+8 of an aircraft by persons who modify, refurbish, complete,
510+9 repair, replace, or maintain aircraft and who (i) hold an Air
511+10 Agency Certificate and are empowered to operate an approved
512+11 repair station by the Federal Aviation Administration, (ii)
513+12 have a Class IV Rating, and (iii) conduct operations in
514+13 accordance with Part 145 of the Federal Aviation Regulations;
515+14 and (B) persons who engage in the modification, replacement,
516+15 repair, and maintenance of aircraft engines or power plants
517+16 without regard to whether or not those persons meet the
518+17 qualifications of item (A).
519+18 The exemption does not include aircraft operated by a
520+19 commercial air carrier providing scheduled passenger air
521+20 service pursuant to authority issued under Part 121 or Part
522+21 129 of the Federal Aviation Regulations. The changes made to
523+22 this paragraph (27) by Public Act 98-534 are declarative of
524+23 existing law. It is the intent of the General Assembly that the
525+24 exemption under this paragraph (27) applies continuously from
526+25 January 1, 2010 through December 31, 2024; however, no claim
527+26 for credit or refund is allowed for taxes paid as a result of
528+
529+
530+
531+
532+
533+ SB3426 Enrolled - 15 - LRB103 37529 HLH 67652 b
534+
535+
536+SB3426 Enrolled- 16 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 16 - LRB103 37529 HLH 67652 b
537+ SB3426 Enrolled - 16 - LRB103 37529 HLH 67652 b
538+1 the disallowance of this exemption on or after January 1, 2015
539+2 and prior to February 5, 2020 (the effective date of Public Act
540+3 101-629).
541+4 (28) Tangible personal property purchased by a
542+5 public-facilities corporation, as described in Section
543+6 11-65-10 of the Illinois Municipal Code, for purposes of
544+7 constructing or furnishing a municipal convention hall, but
545+8 only if the legal title to the municipal convention hall is
546+9 transferred to the municipality without any further
547+10 consideration by or on behalf of the municipality at the time
548+11 of the completion of the municipal convention hall or upon the
549+12 retirement or redemption of any bonds or other debt
550+13 instruments issued by the public-facilities corporation in
551+14 connection with the development of the municipal convention
552+15 hall. This exemption includes existing public-facilities
553+16 corporations as provided in Section 11-65-25 of the Illinois
554+17 Municipal Code. This paragraph is exempt from the provisions
555+18 of Section 3-75.
556+19 (29) Beginning January 1, 2017 and through December 31,
557+20 2026, menstrual pads, tampons, and menstrual cups.
558+21 (30) Tangible personal property transferred to a purchaser
559+22 who is exempt from the tax imposed by this Act by operation of
560+23 federal law. This paragraph is exempt from the provisions of
561+24 Section 3-75.
562+25 (31) Qualified tangible personal property used in the
563+26 construction or operation of a data center that has been
564+
565+
566+
567+
568+
569+ SB3426 Enrolled - 16 - LRB103 37529 HLH 67652 b
570+
571+
572+SB3426 Enrolled- 17 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 17 - LRB103 37529 HLH 67652 b
573+ SB3426 Enrolled - 17 - LRB103 37529 HLH 67652 b
574+1 granted a certificate of exemption by the Department of
575+2 Commerce and Economic Opportunity, whether that tangible
576+3 personal property is purchased by the owner, operator, or
577+4 tenant of the data center or by a contractor or subcontractor
578+5 of the owner, operator, or tenant. Data centers that would
579+6 have qualified for a certificate of exemption prior to January
580+7 1, 2020 had Public Act 101-31 been in effect, may apply for and
581+8 obtain an exemption for subsequent purchases of computer
582+9 equipment or enabling software purchased or leased to upgrade,
583+10 supplement, or replace computer equipment or enabling software
584+11 purchased or leased in the original investment that would have
585+12 qualified.
586+13 The Department of Commerce and Economic Opportunity shall
587+14 grant a certificate of exemption under this item (31) to
588+15 qualified data centers as defined by Section 605-1025 of the
589+16 Department of Commerce and Economic Opportunity Law of the
590+17 Civil Administrative Code of Illinois.
591+18 For the purposes of this item (31):
592+19 "Data center" means a building or a series of
593+20 buildings rehabilitated or constructed to house working
594+21 servers in one physical location or multiple sites within
595+22 the State of Illinois.
596+23 "Qualified tangible personal property" means:
597+24 electrical systems and equipment; climate control and
598+25 chilling equipment and systems; mechanical systems and
599+26 equipment; monitoring and secure systems; emergency
600+
601+
602+
603+
604+
605+ SB3426 Enrolled - 17 - LRB103 37529 HLH 67652 b
606+
607+
608+SB3426 Enrolled- 18 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 18 - LRB103 37529 HLH 67652 b
609+ SB3426 Enrolled - 18 - LRB103 37529 HLH 67652 b
610+1 generators; hardware; computers; servers; data storage
611+2 devices; network connectivity equipment; racks; cabinets;
612+3 telecommunications cabling infrastructure; raised floor
613+4 systems; peripheral components or systems; software;
614+5 mechanical, electrical, or plumbing systems; battery
615+6 systems; cooling systems and towers; temperature control
616+7 systems; other cabling; and other data center
617+8 infrastructure equipment and systems necessary to operate
618+9 qualified tangible personal property, including fixtures;
619+10 and component parts of any of the foregoing, including
620+11 installation, maintenance, repair, refurbishment, and
621+12 replacement of qualified tangible personal property to
622+13 generate, transform, transmit, distribute, or manage
623+14 electricity necessary to operate qualified tangible
624+15 personal property; and all other tangible personal
625+16 property that is essential to the operations of a computer
626+17 data center. The term "qualified tangible personal
627+18 property" also includes building materials physically
628+19 incorporated into in to the qualifying data center. To
629+20 document the exemption allowed under this Section, the
630+21 retailer must obtain from the purchaser a copy of the
631+22 certificate of eligibility issued by the Department of
632+23 Commerce and Economic Opportunity.
633+24 This item (31) is exempt from the provisions of Section
634+25 3-75.
635+26 (32) Beginning July 1, 2022, breast pumps, breast pump
636+
637+
638+
639+
640+
641+ SB3426 Enrolled - 18 - LRB103 37529 HLH 67652 b
642+
643+
644+SB3426 Enrolled- 19 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 19 - LRB103 37529 HLH 67652 b
645+ SB3426 Enrolled - 19 - LRB103 37529 HLH 67652 b
646+1 collection and storage supplies, and breast pump kits. This
647+2 item (32) is exempt from the provisions of Section 3-75. As
648+3 used in this item (32):
649+4 "Breast pump" means an electrically controlled or
650+5 manually controlled pump device designed or marketed to be
651+6 used to express milk from a human breast during lactation,
652+7 including the pump device and any battery, AC adapter, or
653+8 other power supply unit that is used to power the pump
654+9 device and is packaged and sold with the pump device at the
655+10 time of sale.
656+11 "Breast pump collection and storage supplies" means
657+12 items of tangible personal property designed or marketed
658+13 to be used in conjunction with a breast pump to collect
659+14 milk expressed from a human breast and to store collected
660+15 milk until it is ready for consumption.
661+16 "Breast pump collection and storage supplies"
662+17 includes, but is not limited to: breast shields and breast
663+18 shield connectors; breast pump tubes and tubing adapters;
664+19 breast pump valves and membranes; backflow protectors and
665+20 backflow protector adaptors; bottles and bottle caps
666+21 specific to the operation of the breast pump; and breast
667+22 milk storage bags.
668+23 "Breast pump collection and storage supplies" does not
669+24 include: (1) bottles and bottle caps not specific to the
670+25 operation of the breast pump; (2) breast pump travel bags
671+26 and other similar carrying accessories, including ice
672+
673+
674+
675+
676+
677+ SB3426 Enrolled - 19 - LRB103 37529 HLH 67652 b
678+
679+
680+SB3426 Enrolled- 20 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 20 - LRB103 37529 HLH 67652 b
681+ SB3426 Enrolled - 20 - LRB103 37529 HLH 67652 b
682+1 packs, labels, and other similar products; (3) breast pump
683+2 cleaning supplies; (4) nursing bras, bra pads, breast
684+3 shells, and other similar products; and (5) creams,
685+4 ointments, and other similar products that relieve
686+5 breastfeeding-related symptoms or conditions of the
687+6 breasts or nipples, unless sold as part of a breast pump
688+7 kit that is pre-packaged by the breast pump manufacturer
689+8 or distributor.
690+9 "Breast pump kit" means a kit that: (1) contains no
691+10 more than a breast pump, breast pump collection and
692+11 storage supplies, a rechargeable battery for operating the
693+12 breast pump, a breastmilk cooler, bottle stands, ice
694+13 packs, and a breast pump carrying case; and (2) is
695+14 pre-packaged as a breast pump kit by the breast pump
696+15 manufacturer or distributor.
697+16 (33) Tangible personal property sold by or on behalf of
698+17 the State Treasurer pursuant to the Revised Uniform Unclaimed
699+18 Property Act. This item (33) is exempt from the provisions of
700+19 Section 3-75.
701+20 (34) Beginning on January 1, 2024, tangible personal
702+21 property purchased by an active duty member of the armed
703+22 forces of the United States who presents valid military
704+23 identification and purchases the property using a form of
705+24 payment where the federal government is the payor. The member
706+25 of the armed forces must complete, at the point of sale, a form
707+26 prescribed by the Department of Revenue documenting that the
708+
709+
710+
711+
712+
713+ SB3426 Enrolled - 20 - LRB103 37529 HLH 67652 b
714+
715+
716+SB3426 Enrolled- 21 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 21 - LRB103 37529 HLH 67652 b
717+ SB3426 Enrolled - 21 - LRB103 37529 HLH 67652 b
718+1 transaction is eligible for the exemption under this
719+2 paragraph. Retailers must keep the form as documentation of
720+3 the exemption in their records for a period of not less than 6
721+4 years. "Armed forces of the United States" means the United
722+5 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
723+6 This paragraph is exempt from the provisions of Section 3-75.
724+7 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
725+8 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
726+9 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
727+10 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
728+11 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
729+12 revised 12-12-23.)
730+13 Section 10. The Service Occupation Tax Act is amended by
731+14 changing Section 3-5 as follows:
732+15 (35 ILCS 115/3-5)
733+16 Sec. 3-5. Exemptions. The following tangible personal
734+17 property is exempt from the tax imposed by this Act:
735+18 (1) Personal property sold by a corporation, society,
736+19 association, foundation, institution, or organization, other
737+20 than a limited liability company, that is organized and
738+21 operated as a not-for-profit service enterprise for the
739+22 benefit of persons 65 years of age or older if the personal
740+23 property was not purchased by the enterprise for the purpose
741+24 of resale by the enterprise.
742+
743+
744+
745+
746+
747+ SB3426 Enrolled - 21 - LRB103 37529 HLH 67652 b
748+
749+
750+SB3426 Enrolled- 22 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 22 - LRB103 37529 HLH 67652 b
751+ SB3426 Enrolled - 22 - LRB103 37529 HLH 67652 b
752+1 (2) Personal property purchased by a not-for-profit
753+2 Illinois county fair association for use in conducting,
754+3 operating, or promoting the county fair.
755+4 (3) Personal property purchased by any not-for-profit arts
756+5 or cultural organization that establishes, by proof required
757+6 by the Department by rule, that it has received an exemption
758+7 under Section 501(c)(3) of the Internal Revenue Code and that
759+8 is organized and operated primarily for the presentation or
760+9 support of arts or cultural programming, activities, or
761+10 services. These organizations include, but are not limited to,
762+11 music and dramatic arts organizations such as symphony
763+12 orchestras and theatrical groups, arts and cultural service
764+13 organizations, local arts councils, visual arts organizations,
765+14 and media arts organizations. On and after July 1, 2001 (the
766+15 effective date of Public Act 92-35), however, an entity
767+16 otherwise eligible for this exemption shall not make tax-free
768+17 purchases unless it has an active identification number issued
769+18 by the Department.
770+19 (4) Legal tender, currency, medallions, or gold or silver
771+20 coinage issued by the State of Illinois, the government of the
772+21 United States of America, or the government of any foreign
773+22 country, and bullion.
774+23 (5) Until July 1, 2003 and beginning again on September 1,
775+24 2004 through August 30, 2014, graphic arts machinery and
776+25 equipment, including repair and replacement parts, both new
777+26 and used, and including that manufactured on special order or
778+
779+
780+
781+
782+
783+ SB3426 Enrolled - 22 - LRB103 37529 HLH 67652 b
784+
785+
786+SB3426 Enrolled- 23 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 23 - LRB103 37529 HLH 67652 b
787+ SB3426 Enrolled - 23 - LRB103 37529 HLH 67652 b
788+1 purchased for lease, certified by the purchaser to be used
789+2 primarily for graphic arts production. Equipment includes
790+3 chemicals or chemicals acting as catalysts but only if the
791+4 chemicals or chemicals acting as catalysts effect a direct and
792+5 immediate change upon a graphic arts product. Beginning on
793+6 July 1, 2017, graphic arts machinery and equipment is included
794+7 in the manufacturing and assembling machinery and equipment
795+8 exemption under Section 2 of this Act.
796+9 (6) Personal property sold by a teacher-sponsored student
797+10 organization affiliated with an elementary or secondary school
798+11 located in Illinois.
799+12 (7) Farm machinery and equipment, both new and used,
800+13 including that manufactured on special order, certified by the
801+14 purchaser to be used primarily for production agriculture or
802+15 State or federal agricultural programs, including individual
803+16 replacement parts for the machinery and equipment, including
804+17 machinery and equipment purchased for lease, and including
805+18 implements of husbandry defined in Section 1-130 of the
806+19 Illinois Vehicle Code, farm machinery and agricultural
807+20 chemical and fertilizer spreaders, and nurse wagons required
808+21 to be registered under Section 3-809 of the Illinois Vehicle
809+22 Code, but excluding other motor vehicles required to be
810+23 registered under the Illinois Vehicle Code. Horticultural
811+24 polyhouses or hoop houses used for propagating, growing, or
812+25 overwintering plants shall be considered farm machinery and
813+26 equipment under this item (7). Agricultural chemical tender
814+
815+
816+
817+
818+
819+ SB3426 Enrolled - 23 - LRB103 37529 HLH 67652 b
820+
821+
822+SB3426 Enrolled- 24 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 24 - LRB103 37529 HLH 67652 b
823+ SB3426 Enrolled - 24 - LRB103 37529 HLH 67652 b
824+1 tanks and dry boxes shall include units sold separately from a
825+2 motor vehicle required to be licensed and units sold mounted
826+3 on a motor vehicle required to be licensed if the selling price
827+4 of the tender is separately stated.
828+5 Farm machinery and equipment shall include precision
829+6 farming equipment that is installed or purchased to be
830+7 installed on farm machinery and equipment, including, but not
831+8 limited to, tractors, harvesters, sprayers, planters, seeders,
832+9 or spreaders. Precision farming equipment includes, but is not
833+10 limited to, soil testing sensors, computers, monitors,
834+11 software, global positioning and mapping systems, and other
835+12 such equipment.
836+13 Farm machinery and equipment also includes computers,
837+14 sensors, software, and related equipment used primarily in the
838+15 computer-assisted operation of production agriculture
839+16 facilities, equipment, and activities such as, but not limited
840+17 to, the collection, monitoring, and correlation of animal and
841+18 crop data for the purpose of formulating animal diets and
842+19 agricultural chemicals.
843+20 Beginning on January 1, 2024, farm machinery and equipment
844+21 also includes electrical power generation equipment used
845+22 primarily for production agriculture.
846+23 This item (7) is exempt from the provisions of Section
847+24 3-55.
848+25 (8) Until June 30, 2013, fuel and petroleum products sold
849+26 to or used by an air common carrier, certified by the carrier
850+
851+
852+
853+
854+
855+ SB3426 Enrolled - 24 - LRB103 37529 HLH 67652 b
856+
857+
858+SB3426 Enrolled- 25 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 25 - LRB103 37529 HLH 67652 b
859+ SB3426 Enrolled - 25 - LRB103 37529 HLH 67652 b
860+1 to be used for consumption, shipment, or storage in the
861+2 conduct of its business as an air common carrier, for a flight
862+3 destined for or returning from a location or locations outside
863+4 the United States without regard to previous or subsequent
864+5 domestic stopovers.
865+6 Beginning July 1, 2013, fuel and petroleum products sold
866+7 to or used by an air carrier, certified by the carrier to be
867+8 used for consumption, shipment, or storage in the conduct of
868+9 its business as an air common carrier, for a flight that (i) is
869+10 engaged in foreign trade or is engaged in trade between the
870+11 United States and any of its possessions and (ii) transports
871+12 at least one individual or package for hire from the city of
872+13 origination to the city of final destination on the same
873+14 aircraft, without regard to a change in the flight number of
874+15 that aircraft.
875+16 (9) Proceeds of mandatory service charges separately
876+17 stated on customers' bills for the purchase and consumption of
877+18 food and beverages, to the extent that the proceeds of the
878+19 service charge are in fact turned over as tips or as a
879+20 substitute for tips to the employees who participate directly
880+21 in preparing, serving, hosting or cleaning up the food or
881+22 beverage function with respect to which the service charge is
882+23 imposed.
883+24 (10) Until July 1, 2003, oil field exploration, drilling,
884+25 and production equipment, including (i) rigs and parts of
885+26 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
886+
887+
888+
889+
890+
891+ SB3426 Enrolled - 25 - LRB103 37529 HLH 67652 b
892+
893+
894+SB3426 Enrolled- 26 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 26 - LRB103 37529 HLH 67652 b
895+ SB3426 Enrolled - 26 - LRB103 37529 HLH 67652 b
896+1 pipe and tubular goods, including casing and drill strings,
897+2 (iii) pumps and pump-jack units, (iv) storage tanks and flow
898+3 lines, (v) any individual replacement part for oil field
899+4 exploration, drilling, and production equipment, and (vi)
900+5 machinery and equipment purchased for lease; but excluding
901+6 motor vehicles required to be registered under the Illinois
902+7 Vehicle Code.
903+8 (11) Photoprocessing machinery and equipment, including
904+9 repair and replacement parts, both new and used, including
905+10 that manufactured on special order, certified by the purchaser
906+11 to be used primarily for photoprocessing, and including
907+12 photoprocessing machinery and equipment purchased for lease.
908+13 (12) Until July 1, 2028, coal and aggregate exploration,
909+14 mining, off-highway hauling, processing, maintenance, and
910+15 reclamation equipment, including replacement parts and
911+16 equipment, and including equipment purchased for lease, but
912+17 excluding motor vehicles required to be registered under the
913+18 Illinois Vehicle Code. The changes made to this Section by
914+19 Public Act 97-767 apply on and after July 1, 2003, but no claim
915+20 for credit or refund is allowed on or after August 16, 2013
916+21 (the effective date of Public Act 98-456) for such taxes paid
917+22 during the period beginning July 1, 2003 and ending on August
918+23 16, 2013 (the effective date of Public Act 98-456).
919+24 (13) Beginning January 1, 1992 and through June 30, 2016,
920+25 food for human consumption that is to be consumed off the
921+26 premises where it is sold (other than alcoholic beverages,
922+
923+
924+
925+
926+
927+ SB3426 Enrolled - 26 - LRB103 37529 HLH 67652 b
928+
929+
930+SB3426 Enrolled- 27 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 27 - LRB103 37529 HLH 67652 b
931+ SB3426 Enrolled - 27 - LRB103 37529 HLH 67652 b
932+1 soft drinks and food that has been prepared for immediate
933+2 consumption) and prescription and non-prescription medicines,
934+3 drugs, medical appliances, and insulin, urine testing
935+4 materials, syringes, and needles used by diabetics, for human
936+5 use, when purchased for use by a person receiving medical
937+6 assistance under Article V of the Illinois Public Aid Code who
938+7 resides in a licensed long-term care facility, as defined in
939+8 the Nursing Home Care Act, or in a licensed facility as defined
940+9 in the ID/DD Community Care Act, the MC/DD Act, or the
941+10 Specialized Mental Health Rehabilitation Act of 2013.
942+11 (14) Semen used for artificial insemination of livestock
943+12 for direct agricultural production.
944+13 (15) Horses, or interests in horses, registered with and
945+14 meeting the requirements of any of the Arabian Horse Club
946+15 Registry of America, Appaloosa Horse Club, American Quarter
947+16 Horse Association, United States Trotting Association, or
948+17 Jockey Club, as appropriate, used for purposes of breeding or
949+18 racing for prizes. This item (15) is exempt from the
950+19 provisions of Section 3-55, and the exemption provided for
951+20 under this item (15) applies for all periods beginning May 30,
952+21 1995, but no claim for credit or refund is allowed on or after
953+22 January 1, 2008 (the effective date of Public Act 95-88) for
954+23 such taxes paid during the period beginning May 30, 2000 and
955+24 ending on January 1, 2008 (the effective date of Public Act
956+25 95-88).
957+26 (16) Computers and communications equipment utilized for
958+
959+
960+
961+
962+
963+ SB3426 Enrolled - 27 - LRB103 37529 HLH 67652 b
964+
965+
966+SB3426 Enrolled- 28 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 28 - LRB103 37529 HLH 67652 b
967+ SB3426 Enrolled - 28 - LRB103 37529 HLH 67652 b
968+1 any hospital purpose and equipment used in the diagnosis,
969+2 analysis, or treatment of hospital patients sold to a lessor
970+3 who leases the equipment, under a lease of one year or longer
971+4 executed or in effect at the time of the purchase, to a
972+5 hospital that has been issued an active tax exemption
973+6 identification number by the Department under Section 1g of
974+7 the Retailers' Occupation Tax Act.
975+8 (17) Personal property sold to a lessor who leases the
976+9 property, under a lease of one year or longer executed or in
977+10 effect at the time of the purchase, to a governmental body that
978+11 has been issued an active tax exemption identification number
979+12 by the Department under Section 1g of the Retailers'
980+13 Occupation Tax Act.
981+14 (18) Beginning with taxable years ending on or after
982+15 December 31, 1995 and ending with taxable years ending on or
983+16 before December 31, 2004, personal property that is donated
984+17 for disaster relief to be used in a State or federally declared
985+18 disaster area in Illinois or bordering Illinois by a
986+19 manufacturer or retailer that is registered in this State to a
987+20 corporation, society, association, foundation, or institution
988+21 that has been issued a sales tax exemption identification
989+22 number by the Department that assists victims of the disaster
990+23 who reside within the declared disaster area.
991+24 (19) Beginning with taxable years ending on or after
992+25 December 31, 1995 and ending with taxable years ending on or
993+26 before December 31, 2004, personal property that is used in
994+
995+
996+
997+
998+
999+ SB3426 Enrolled - 28 - LRB103 37529 HLH 67652 b
1000+
1001+
1002+SB3426 Enrolled- 29 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 29 - LRB103 37529 HLH 67652 b
1003+ SB3426 Enrolled - 29 - LRB103 37529 HLH 67652 b
1004+1 the performance of infrastructure repairs in this State,
1005+2 including, but not limited to, municipal roads and streets,
1006+3 access roads, bridges, sidewalks, waste disposal systems,
1007+4 water and sewer line extensions, water distribution and
1008+5 purification facilities, storm water drainage and retention
1009+6 facilities, and sewage treatment facilities, resulting from a
1010+7 State or federally declared disaster in Illinois or bordering
1011+8 Illinois when such repairs are initiated on facilities located
1012+9 in the declared disaster area within 6 months after the
1013+10 disaster.
1014+11 (20) Beginning July 1, 1999, game or game birds sold at a
1015+12 "game breeding and hunting preserve area" as that term is used
1016+13 in the Wildlife Code. This paragraph is exempt from the
1017+14 provisions of Section 3-55.
1018+15 (21) A motor vehicle, as that term is defined in Section
1019+16 1-146 of the Illinois Vehicle Code, that is donated to a
1020+17 corporation, limited liability company, society, association,
1021+18 foundation, or institution that is determined by the
1022+19 Department to be organized and operated exclusively for
1023+20 educational purposes. For purposes of this exemption, "a
1024+21 corporation, limited liability company, society, association,
1025+22 foundation, or institution organized and operated exclusively
1026+23 for educational purposes" means all tax-supported public
1027+24 schools, private schools that offer systematic instruction in
1028+25 useful branches of learning by methods common to public
1029+26 schools and that compare favorably in their scope and
1030+
1031+
1032+
1033+
1034+
1035+ SB3426 Enrolled - 29 - LRB103 37529 HLH 67652 b
1036+
1037+
1038+SB3426 Enrolled- 30 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 30 - LRB103 37529 HLH 67652 b
1039+ SB3426 Enrolled - 30 - LRB103 37529 HLH 67652 b
1040+1 intensity with the course of study presented in tax-supported
1041+2 schools, and vocational or technical schools or institutes
1042+3 organized and operated exclusively to provide a course of
1043+4 study of not less than 6 weeks duration and designed to prepare
1044+5 individuals to follow a trade or to pursue a manual,
1045+6 technical, mechanical, industrial, business, or commercial
1046+7 occupation.
1047+8 (22) Beginning January 1, 2000, personal property,
1048+9 including food, purchased through fundraising events for the
1049+10 benefit of a public or private elementary or secondary school,
1050+11 a group of those schools, or one or more school districts if
1051+12 the events are sponsored by an entity recognized by the school
1052+13 district that consists primarily of volunteers and includes
1053+14 parents and teachers of the school children. This paragraph
1054+15 does not apply to fundraising events (i) for the benefit of
1055+16 private home instruction or (ii) for which the fundraising
1056+17 entity purchases the personal property sold at the events from
1057+18 another individual or entity that sold the property for the
1058+19 purpose of resale by the fundraising entity and that profits
1059+20 from the sale to the fundraising entity. This paragraph is
1060+21 exempt from the provisions of Section 3-55.
1061+22 (23) Beginning January 1, 2000 and through December 31,
1062+23 2001, new or used automatic vending machines that prepare and
1063+24 serve hot food and beverages, including coffee, soup, and
1064+25 other items, and replacement parts for these machines.
1065+26 Beginning January 1, 2002 and through June 30, 2003, machines
1066+
1067+
1068+
1069+
1070+
1071+ SB3426 Enrolled - 30 - LRB103 37529 HLH 67652 b
1072+
1073+
1074+SB3426 Enrolled- 31 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 31 - LRB103 37529 HLH 67652 b
1075+ SB3426 Enrolled - 31 - LRB103 37529 HLH 67652 b
1076+1 and parts for machines used in commercial, coin-operated
1077+2 amusement and vending business if a use or occupation tax is
1078+3 paid on the gross receipts derived from the use of the
1079+4 commercial, coin-operated amusement and vending machines. This
1080+5 paragraph is exempt from the provisions of Section 3-55.
1081+6 (24) Beginning on August 2, 2001 (the effective date of
1082+7 Public Act 92-227), computers and communications equipment
1083+8 utilized for any hospital purpose and equipment used in the
1084+9 diagnosis, analysis, or treatment of hospital patients sold to
1085+10 a lessor who leases the equipment, under a lease of one year or
1086+11 longer executed or in effect at the time of the purchase, to a
1087+12 hospital that has been issued an active tax exemption
1088+13 identification number by the Department under Section 1g of
1089+14 the Retailers' Occupation Tax Act. This paragraph is exempt
1090+15 from the provisions of Section 3-55.
1091+16 (25) Beginning on August 2, 2001 (the effective date of
1092+17 Public Act 92-227), personal property sold to a lessor who
1093+18 leases the property, under a lease of one year or longer
1094+19 executed or in effect at the time of the purchase, to a
1095+20 governmental body that has been issued an active tax exemption
1096+21 identification number by the Department under Section 1g of
1097+22 the Retailers' Occupation Tax Act. This paragraph is exempt
1098+23 from the provisions of Section 3-55.
1099+24 (26) Beginning on January 1, 2002 and through June 30,
1100+25 2016, tangible personal property purchased from an Illinois
1101+26 retailer by a taxpayer engaged in centralized purchasing
1102+
1103+
1104+
1105+
1106+
1107+ SB3426 Enrolled - 31 - LRB103 37529 HLH 67652 b
1108+
1109+
1110+SB3426 Enrolled- 32 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 32 - LRB103 37529 HLH 67652 b
1111+ SB3426 Enrolled - 32 - LRB103 37529 HLH 67652 b
1112+1 activities in Illinois who will, upon receipt of the property
1113+2 in Illinois, temporarily store the property in Illinois (i)
1114+3 for the purpose of subsequently transporting it outside this
1115+4 State for use or consumption thereafter solely outside this
1116+5 State or (ii) for the purpose of being processed, fabricated,
1117+6 or manufactured into, attached to, or incorporated into other
1118+7 tangible personal property to be transported outside this
1119+8 State and thereafter used or consumed solely outside this
1120+9 State. The Director of Revenue shall, pursuant to rules
1121+10 adopted in accordance with the Illinois Administrative
1122+11 Procedure Act, issue a permit to any taxpayer in good standing
1123+12 with the Department who is eligible for the exemption under
1124+13 this paragraph (26). The permit issued under this paragraph
1125+14 (26) shall authorize the holder, to the extent and in the
1126+15 manner specified in the rules adopted under this Act, to
1127+16 purchase tangible personal property from a retailer exempt
1128+17 from the taxes imposed by this Act. Taxpayers shall maintain
1129+18 all necessary books and records to substantiate the use and
1130+19 consumption of all such tangible personal property outside of
1131+20 the State of Illinois.
1132+21 (27) Beginning January 1, 2008, tangible personal property
1133+22 used in the construction or maintenance of a community water
1134+23 supply, as defined under Section 3.145 of the Environmental
1135+24 Protection Act, that is operated by a not-for-profit
1136+25 corporation that holds a valid water supply permit issued
1137+26 under Title IV of the Environmental Protection Act. This
1138+
1139+
1140+
1141+
1142+
1143+ SB3426 Enrolled - 32 - LRB103 37529 HLH 67652 b
1144+
1145+
1146+SB3426 Enrolled- 33 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 33 - LRB103 37529 HLH 67652 b
1147+ SB3426 Enrolled - 33 - LRB103 37529 HLH 67652 b
1148+1 paragraph is exempt from the provisions of Section 3-55.
1149+2 (28) Tangible personal property sold to a
1150+3 public-facilities corporation, as described in Section
1151+4 11-65-10 of the Illinois Municipal Code, for purposes of
1152+5 constructing or furnishing a municipal convention hall, but
1153+6 only if the legal title to the municipal convention hall is
1154+7 transferred to the municipality without any further
1155+8 consideration by or on behalf of the municipality at the time
1156+9 of the completion of the municipal convention hall or upon the
1157+10 retirement or redemption of any bonds or other debt
1158+11 instruments issued by the public-facilities corporation in
1159+12 connection with the development of the municipal convention
1160+13 hall. This exemption includes existing public-facilities
1161+14 corporations as provided in Section 11-65-25 of the Illinois
1162+15 Municipal Code. This paragraph is exempt from the provisions
1163+16 of Section 3-55.
1164+17 (29) Beginning January 1, 2010 and continuing through
1165+18 December 31, 2029, materials, parts, equipment, components,
1166+19 and furnishings incorporated into or upon an aircraft as part
1167+20 of the modification, refurbishment, completion, replacement,
1168+21 repair, or maintenance of the aircraft. This exemption
1169+22 includes consumable supplies used in the modification,
1170+23 refurbishment, completion, replacement, repair, and
1171+24 maintenance of aircraft. However, until January 1, 2024, this
1172+25 exemption excludes any materials, parts, equipment,
1173+26 components, and consumable supplies used in the modification,
1174+
1175+
1176+
1177+
1178+
1179+ SB3426 Enrolled - 33 - LRB103 37529 HLH 67652 b
1180+
1181+
1182+SB3426 Enrolled- 34 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 34 - LRB103 37529 HLH 67652 b
1183+ SB3426 Enrolled - 34 - LRB103 37529 HLH 67652 b
1184+1 replacement, repair, and maintenance of aircraft engines or
1185+2 power plants, whether such engines or power plants are
1186+3 installed or uninstalled upon any such aircraft. "Consumable
1187+4 supplies" include, but are not limited to, adhesive, tape,
1188+5 sandpaper, general purpose lubricants, cleaning solution,
1189+6 latex gloves, and protective films.
1190+7 Beginning January 1, 2010 and continuing through December
1191+8 31, 2023, this exemption applies only to the transfer of
1192+9 qualifying tangible personal property incident to the
1193+10 modification, refurbishment, completion, replacement, repair,
1194+11 or maintenance of an aircraft by persons who (i) hold an Air
1195+12 Agency Certificate and are empowered to operate an approved
1196+13 repair station by the Federal Aviation Administration, (ii)
1197+14 have a Class IV Rating, and (iii) conduct operations in
1198+15 accordance with Part 145 of the Federal Aviation Regulations.
1199+16 The exemption does not include aircraft operated by a
1200+17 commercial air carrier providing scheduled passenger air
1201+18 service pursuant to authority issued under Part 121 or Part
1202+19 129 of the Federal Aviation Regulations. From January 1, 2024
1203+20 through December 31, 2029, this exemption applies only to the
1204+21 transfer use of qualifying tangible personal property incident
1205+22 to by: (A) the modification, refurbishment, completion,
1206+23 repair, replacement, or maintenance of an aircraft by persons
1207+24 who modify, refurbish, complete, repair, replace, or maintain
1208+25 aircraft and who (i) hold an Air Agency Certificate and are
1209+26 empowered to operate an approved repair station by the Federal
1210+
1211+
1212+
1213+
1214+
1215+ SB3426 Enrolled - 34 - LRB103 37529 HLH 67652 b
1216+
1217+
1218+SB3426 Enrolled- 35 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 35 - LRB103 37529 HLH 67652 b
1219+ SB3426 Enrolled - 35 - LRB103 37529 HLH 67652 b
1220+1 Aviation Administration, (ii) have a Class IV Rating, and
1221+2 (iii) conduct operations in accordance with Part 145 of the
1222+3 Federal Aviation Regulations; and (B) persons who engage in
1223+4 the modification, replacement, repair, and maintenance of
1224+5 aircraft engines or power plants without regard to whether or
1225+6 not those persons meet the qualifications of item (A).
1226+7 The changes made to this paragraph (29) by Public Act
1227+8 98-534 are declarative of existing law. It is the intent of the
1228+9 General Assembly that the exemption under this paragraph (29)
1229+10 applies continuously from January 1, 2010 through December 31,
1230+11 2024; however, no claim for credit or refund is allowed for
1231+12 taxes paid as a result of the disallowance of this exemption on
1232+13 or after January 1, 2015 and prior to February 5, 2020 (the
1233+14 effective date of Public Act 101-629).
1234+15 (30) Beginning January 1, 2017 and through December 31,
1235+16 2026, menstrual pads, tampons, and menstrual cups.
1236+17 (31) Tangible personal property transferred to a purchaser
1237+18 who is exempt from tax by operation of federal law. This
1238+19 paragraph is exempt from the provisions of Section 3-55.
1239+20 (32) Qualified tangible personal property used in the
1240+21 construction or operation of a data center that has been
1241+22 granted a certificate of exemption by the Department of
1242+23 Commerce and Economic Opportunity, whether that tangible
1243+24 personal property is purchased by the owner, operator, or
1244+25 tenant of the data center or by a contractor or subcontractor
1245+26 of the owner, operator, or tenant. Data centers that would
1246+
1247+
1248+
1249+
1250+
1251+ SB3426 Enrolled - 35 - LRB103 37529 HLH 67652 b
1252+
1253+
1254+SB3426 Enrolled- 36 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 36 - LRB103 37529 HLH 67652 b
1255+ SB3426 Enrolled - 36 - LRB103 37529 HLH 67652 b
1256+1 have qualified for a certificate of exemption prior to January
1257+2 1, 2020 had Public Act 101-31 been in effect, may apply for and
1258+3 obtain an exemption for subsequent purchases of computer
1259+4 equipment or enabling software purchased or leased to upgrade,
1260+5 supplement, or replace computer equipment or enabling software
1261+6 purchased or leased in the original investment that would have
1262+7 qualified.
1263+8 The Department of Commerce and Economic Opportunity shall
1264+9 grant a certificate of exemption under this item (32) to
1265+10 qualified data centers as defined by Section 605-1025 of the
1266+11 Department of Commerce and Economic Opportunity Law of the
1267+12 Civil Administrative Code of Illinois.
1268+13 For the purposes of this item (32):
1269+14 "Data center" means a building or a series of
1270+15 buildings rehabilitated or constructed to house working
1271+16 servers in one physical location or multiple sites within
1272+17 the State of Illinois.
1273+18 "Qualified tangible personal property" means:
1274+19 electrical systems and equipment; climate control and
1275+20 chilling equipment and systems; mechanical systems and
1276+21 equipment; monitoring and secure systems; emergency
1277+22 generators; hardware; computers; servers; data storage
1278+23 devices; network connectivity equipment; racks; cabinets;
1279+24 telecommunications cabling infrastructure; raised floor
1280+25 systems; peripheral components or systems; software;
1281+26 mechanical, electrical, or plumbing systems; battery
1282+
1283+
1284+
1285+
1286+
1287+ SB3426 Enrolled - 36 - LRB103 37529 HLH 67652 b
1288+
1289+
1290+SB3426 Enrolled- 37 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 37 - LRB103 37529 HLH 67652 b
1291+ SB3426 Enrolled - 37 - LRB103 37529 HLH 67652 b
1292+1 systems; cooling systems and towers; temperature control
1293+2 systems; other cabling; and other data center
1294+3 infrastructure equipment and systems necessary to operate
1295+4 qualified tangible personal property, including fixtures;
1296+5 and component parts of any of the foregoing, including
1297+6 installation, maintenance, repair, refurbishment, and
1298+7 replacement of qualified tangible personal property to
1299+8 generate, transform, transmit, distribute, or manage
1300+9 electricity necessary to operate qualified tangible
1301+10 personal property; and all other tangible personal
1302+11 property that is essential to the operations of a computer
1303+12 data center. The term "qualified tangible personal
1304+13 property" also includes building materials physically
1305+14 incorporated into in to the qualifying data center. To
1306+15 document the exemption allowed under this Section, the
1307+16 retailer must obtain from the purchaser a copy of the
1308+17 certificate of eligibility issued by the Department of
1309+18 Commerce and Economic Opportunity.
1310+19 This item (32) is exempt from the provisions of Section
1311+20 3-55.
1312+21 (33) Beginning July 1, 2022, breast pumps, breast pump
1313+22 collection and storage supplies, and breast pump kits. This
1314+23 item (33) is exempt from the provisions of Section 3-55. As
1315+24 used in this item (33):
1316+25 "Breast pump" means an electrically controlled or
1317+26 manually controlled pump device designed or marketed to be
1318+
1319+
1320+
1321+
1322+
1323+ SB3426 Enrolled - 37 - LRB103 37529 HLH 67652 b
1324+
1325+
1326+SB3426 Enrolled- 38 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 38 - LRB103 37529 HLH 67652 b
1327+ SB3426 Enrolled - 38 - LRB103 37529 HLH 67652 b
1328+1 used to express milk from a human breast during lactation,
1329+2 including the pump device and any battery, AC adapter, or
1330+3 other power supply unit that is used to power the pump
1331+4 device and is packaged and sold with the pump device at the
1332+5 time of sale.
1333+6 "Breast pump collection and storage supplies" means
1334+7 items of tangible personal property designed or marketed
1335+8 to be used in conjunction with a breast pump to collect
1336+9 milk expressed from a human breast and to store collected
1337+10 milk until it is ready for consumption.
1338+11 "Breast pump collection and storage supplies"
1339+12 includes, but is not limited to: breast shields and breast
1340+13 shield connectors; breast pump tubes and tubing adapters;
1341+14 breast pump valves and membranes; backflow protectors and
1342+15 backflow protector adaptors; bottles and bottle caps
1343+16 specific to the operation of the breast pump; and breast
1344+17 milk storage bags.
1345+18 "Breast pump collection and storage supplies" does not
1346+19 include: (1) bottles and bottle caps not specific to the
1347+20 operation of the breast pump; (2) breast pump travel bags
1348+21 and other similar carrying accessories, including ice
1349+22 packs, labels, and other similar products; (3) breast pump
1350+23 cleaning supplies; (4) nursing bras, bra pads, breast
1351+24 shells, and other similar products; and (5) creams,
1352+25 ointments, and other similar products that relieve
1353+26 breastfeeding-related symptoms or conditions of the
1354+
1355+
1356+
1357+
1358+
1359+ SB3426 Enrolled - 38 - LRB103 37529 HLH 67652 b
1360+
1361+
1362+SB3426 Enrolled- 39 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 39 - LRB103 37529 HLH 67652 b
1363+ SB3426 Enrolled - 39 - LRB103 37529 HLH 67652 b
1364+1 breasts or nipples, unless sold as part of a breast pump
1365+2 kit that is pre-packaged by the breast pump manufacturer
1366+3 or distributor.
1367+4 "Breast pump kit" means a kit that: (1) contains no
1368+5 more than a breast pump, breast pump collection and
1369+6 storage supplies, a rechargeable battery for operating the
1370+7 breast pump, a breastmilk cooler, bottle stands, ice
1371+8 packs, and a breast pump carrying case; and (2) is
1372+9 pre-packaged as a breast pump kit by the breast pump
1373+10 manufacturer or distributor.
1374+11 (34) Tangible personal property sold by or on behalf of
1375+12 the State Treasurer pursuant to the Revised Uniform Unclaimed
1376+13 Property Act. This item (34) is exempt from the provisions of
1377+14 Section 3-55.
1378+15 (35) Beginning on January 1, 2024, tangible personal
1379+16 property purchased by an active duty member of the armed
1380+17 forces of the United States who presents valid military
1381+18 identification and purchases the property using a form of
1382+19 payment where the federal government is the payor. The member
1383+20 of the armed forces must complete, at the point of sale, a form
1384+21 prescribed by the Department of Revenue documenting that the
1385+22 transaction is eligible for the exemption under this
1386+23 paragraph. Retailers must keep the form as documentation of
1387+24 the exemption in their records for a period of not less than 6
1388+25 years. "Armed forces of the United States" means the United
1389+26 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1390+
1391+
1392+
1393+
1394+
1395+ SB3426 Enrolled - 39 - LRB103 37529 HLH 67652 b
1396+
1397+
1398+SB3426 Enrolled- 40 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 40 - LRB103 37529 HLH 67652 b
1399+ SB3426 Enrolled - 40 - LRB103 37529 HLH 67652 b
1400+1 This paragraph is exempt from the provisions of Section 3-55.
1401+2 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1402+3 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1403+4 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1404+5 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
1405+6 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1406+7 revised 12-12-23.)
1407+8 Section 15. The Retailers' Occupation Tax Act is amended
1408+9 by changing Section 2-5 as follows:
1409+10 (35 ILCS 120/2-5)
1410+11 Sec. 2-5. Exemptions. Gross receipts from proceeds from
1411+12 the sale of the following tangible personal property are
1412+13 exempt from the tax imposed by this Act:
1413+14 (1) Farm chemicals.
1414+15 (2) Farm machinery and equipment, both new and used,
1415+16 including that manufactured on special order, certified by
1416+17 the purchaser to be used primarily for production
1417+18 agriculture or State or federal agricultural programs,
1418+19 including individual replacement parts for the machinery
1419+20 and equipment, including machinery and equipment purchased
1420+21 for lease, and including implements of husbandry defined
1421+22 in Section 1-130 of the Illinois Vehicle Code, farm
1422+23 machinery and agricultural chemical and fertilizer
1423+24 spreaders, and nurse wagons required to be registered
1424+
1425+
1426+
1427+
1428+
1429+ SB3426 Enrolled - 40 - LRB103 37529 HLH 67652 b
1430+
1431+
1432+SB3426 Enrolled- 41 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 41 - LRB103 37529 HLH 67652 b
1433+ SB3426 Enrolled - 41 - LRB103 37529 HLH 67652 b
1434+1 under Section 3-809 of the Illinois Vehicle Code, but
1435+2 excluding other motor vehicles required to be registered
1436+3 under the Illinois Vehicle Code. Horticultural polyhouses
1437+4 or hoop houses used for propagating, growing, or
1438+5 overwintering plants shall be considered farm machinery
1439+6 and equipment under this item (2). Agricultural chemical
1440+7 tender tanks and dry boxes shall include units sold
1441+8 separately from a motor vehicle required to be licensed
1442+9 and units sold mounted on a motor vehicle required to be
1443+10 licensed, if the selling price of the tender is separately
1444+11 stated.
1445+12 Farm machinery and equipment shall include precision
1446+13 farming equipment that is installed or purchased to be
1447+14 installed on farm machinery and equipment including, but
1448+15 not limited to, tractors, harvesters, sprayers, planters,
1449+16 seeders, or spreaders. Precision farming equipment
1450+17 includes, but is not limited to, soil testing sensors,
1451+18 computers, monitors, software, global positioning and
1452+19 mapping systems, and other such equipment.
1453+20 Farm machinery and equipment also includes computers,
1454+21 sensors, software, and related equipment used primarily in
1455+22 the computer-assisted operation of production agriculture
1456+23 facilities, equipment, and activities such as, but not
1457+24 limited to, the collection, monitoring, and correlation of
1458+25 animal and crop data for the purpose of formulating animal
1459+26 diets and agricultural chemicals.
1460+
1461+
1462+
1463+
1464+
1465+ SB3426 Enrolled - 41 - LRB103 37529 HLH 67652 b
1466+
1467+
1468+SB3426 Enrolled- 42 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 42 - LRB103 37529 HLH 67652 b
1469+ SB3426 Enrolled - 42 - LRB103 37529 HLH 67652 b
1470+1 Beginning on January 1, 2024, farm machinery and
1471+2 equipment also includes electrical power generation
1472+3 equipment used primarily for production agriculture.
1473+4 This item (2) is exempt from the provisions of Section
1474+5 2-70.
1475+6 (3) Until July 1, 2003, distillation machinery and
1476+7 equipment, sold as a unit or kit, assembled or installed
1477+8 by the retailer, certified by the user to be used only for
1478+9 the production of ethyl alcohol that will be used for
1479+10 consumption as motor fuel or as a component of motor fuel
1480+11 for the personal use of the user, and not subject to sale
1481+12 or resale.
1482+13 (4) Until July 1, 2003 and beginning again September
1483+14 1, 2004 through August 30, 2014, graphic arts machinery
1484+15 and equipment, including repair and replacement parts,
1485+16 both new and used, and including that manufactured on
1486+17 special order or purchased for lease, certified by the
1487+18 purchaser to be used primarily for graphic arts
1488+19 production. Equipment includes chemicals or chemicals
1489+20 acting as catalysts but only if the chemicals or chemicals
1490+21 acting as catalysts effect a direct and immediate change
1491+22 upon a graphic arts product. Beginning on July 1, 2017,
1492+23 graphic arts machinery and equipment is included in the
1493+24 manufacturing and assembling machinery and equipment
1494+25 exemption under paragraph (14).
1495+26 (5) A motor vehicle that is used for automobile
1496+
1497+
1498+
1499+
1500+
1501+ SB3426 Enrolled - 42 - LRB103 37529 HLH 67652 b
1502+
1503+
1504+SB3426 Enrolled- 43 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 43 - LRB103 37529 HLH 67652 b
1505+ SB3426 Enrolled - 43 - LRB103 37529 HLH 67652 b
1506+1 renting, as defined in the Automobile Renting Occupation
1507+2 and Use Tax Act. This paragraph is exempt from the
1508+3 provisions of Section 2-70.
1509+4 (6) Personal property sold by a teacher-sponsored
1510+5 student organization affiliated with an elementary or
1511+6 secondary school located in Illinois.
1512+7 (7) Until July 1, 2003, proceeds of that portion of
1513+8 the selling price of a passenger car the sale of which is
1514+9 subject to the Replacement Vehicle Tax.
1515+10 (8) Personal property sold to an Illinois county fair
1516+11 association for use in conducting, operating, or promoting
1517+12 the county fair.
1518+13 (9) Personal property sold to a not-for-profit arts or
1519+14 cultural organization that establishes, by proof required
1520+15 by the Department by rule, that it has received an
1521+16 exemption under Section 501(c)(3) of the Internal Revenue
1522+17 Code and that is organized and operated primarily for the
1523+18 presentation or support of arts or cultural programming,
1524+19 activities, or services. These organizations include, but
1525+20 are not limited to, music and dramatic arts organizations
1526+21 such as symphony orchestras and theatrical groups, arts
1527+22 and cultural service organizations, local arts councils,
1528+23 visual arts organizations, and media arts organizations.
1529+24 On and after July 1, 2001 (the effective date of Public Act
1530+25 92-35), however, an entity otherwise eligible for this
1531+26 exemption shall not make tax-free purchases unless it has
1532+
1533+
1534+
1535+
1536+
1537+ SB3426 Enrolled - 43 - LRB103 37529 HLH 67652 b
1538+
1539+
1540+SB3426 Enrolled- 44 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 44 - LRB103 37529 HLH 67652 b
1541+ SB3426 Enrolled - 44 - LRB103 37529 HLH 67652 b
1542+1 an active identification number issued by the Department.
1543+2 (10) Personal property sold by a corporation, society,
1544+3 association, foundation, institution, or organization,
1545+4 other than a limited liability company, that is organized
1546+5 and operated as a not-for-profit service enterprise for
1547+6 the benefit of persons 65 years of age or older if the
1548+7 personal property was not purchased by the enterprise for
1549+8 the purpose of resale by the enterprise.
1550+9 (11) Except as otherwise provided in this Section,
1551+10 personal property sold to a governmental body, to a
1552+11 corporation, society, association, foundation, or
1553+12 institution organized and operated exclusively for
1554+13 charitable, religious, or educational purposes, or to a
1555+14 not-for-profit corporation, society, association,
1556+15 foundation, institution, or organization that has no
1557+16 compensated officers or employees and that is organized
1558+17 and operated primarily for the recreation of persons 55
1559+18 years of age or older. A limited liability company may
1560+19 qualify for the exemption under this paragraph only if the
1561+20 limited liability company is organized and operated
1562+21 exclusively for educational purposes. On and after July 1,
1563+22 1987, however, no entity otherwise eligible for this
1564+23 exemption shall make tax-free purchases unless it has an
1565+24 active identification number issued by the Department.
1566+25 (12) (Blank).
1567+26 (12-5) On and after July 1, 2003 and through June 30,
1568+
1569+
1570+
1571+
1572+
1573+ SB3426 Enrolled - 44 - LRB103 37529 HLH 67652 b
1574+
1575+
1576+SB3426 Enrolled- 45 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 45 - LRB103 37529 HLH 67652 b
1577+ SB3426 Enrolled - 45 - LRB103 37529 HLH 67652 b
1578+1 2004, motor vehicles of the second division with a gross
1579+2 vehicle weight in excess of 8,000 pounds that are subject
1580+3 to the commercial distribution fee imposed under Section
1581+4 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
1582+5 2004 and through June 30, 2005, the use in this State of
1583+6 motor vehicles of the second division: (i) with a gross
1584+7 vehicle weight rating in excess of 8,000 pounds; (ii) that
1585+8 are subject to the commercial distribution fee imposed
1586+9 under Section 3-815.1 of the Illinois Vehicle Code; and
1587+10 (iii) that are primarily used for commercial purposes.
1588+11 Through June 30, 2005, this exemption applies to repair
1589+12 and replacement parts added after the initial purchase of
1590+13 such a motor vehicle if that motor vehicle is used in a
1591+14 manner that would qualify for the rolling stock exemption
1592+15 otherwise provided for in this Act. For purposes of this
1593+16 paragraph, "used for commercial purposes" means the
1594+17 transportation of persons or property in furtherance of
1595+18 any commercial or industrial enterprise whether for-hire
1596+19 or not.
1597+20 (13) Proceeds from sales to owners, lessors, or
1598+21 shippers of tangible personal property that is utilized by
1599+22 interstate carriers for hire for use as rolling stock
1600+23 moving in interstate commerce and equipment operated by a
1601+24 telecommunications provider, licensed as a common carrier
1602+25 by the Federal Communications Commission, which is
1603+26 permanently installed in or affixed to aircraft moving in
1604+
1605+
1606+
1607+
1608+
1609+ SB3426 Enrolled - 45 - LRB103 37529 HLH 67652 b
1610+
1611+
1612+SB3426 Enrolled- 46 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 46 - LRB103 37529 HLH 67652 b
1613+ SB3426 Enrolled - 46 - LRB103 37529 HLH 67652 b
1614+1 interstate commerce.
1615+2 (14) Machinery and equipment that will be used by the
1616+3 purchaser, or a lessee of the purchaser, primarily in the
1617+4 process of manufacturing or assembling tangible personal
1618+5 property for wholesale or retail sale or lease, whether
1619+6 the sale or lease is made directly by the manufacturer or
1620+7 by some other person, whether the materials used in the
1621+8 process are owned by the manufacturer or some other
1622+9 person, or whether the sale or lease is made apart from or
1623+10 as an incident to the seller's engaging in the service
1624+11 occupation of producing machines, tools, dies, jigs,
1625+12 patterns, gauges, or other similar items of no commercial
1626+13 value on special order for a particular purchaser. The
1627+14 exemption provided by this paragraph (14) does not include
1628+15 machinery and equipment used in (i) the generation of
1629+16 electricity for wholesale or retail sale; (ii) the
1630+17 generation or treatment of natural or artificial gas for
1631+18 wholesale or retail sale that is delivered to customers
1632+19 through pipes, pipelines, or mains; or (iii) the treatment
1633+20 of water for wholesale or retail sale that is delivered to
1634+21 customers through pipes, pipelines, or mains. The
1635+22 provisions of Public Act 98-583 are declaratory of
1636+23 existing law as to the meaning and scope of this
1637+24 exemption. Beginning on July 1, 2017, the exemption
1638+25 provided by this paragraph (14) includes, but is not
1639+26 limited to, graphic arts machinery and equipment, as
1640+
1641+
1642+
1643+
1644+
1645+ SB3426 Enrolled - 46 - LRB103 37529 HLH 67652 b
1646+
1647+
1648+SB3426 Enrolled- 47 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 47 - LRB103 37529 HLH 67652 b
1649+ SB3426 Enrolled - 47 - LRB103 37529 HLH 67652 b
1650+1 defined in paragraph (4) of this Section.
1651+2 (15) Proceeds of mandatory service charges separately
1652+3 stated on customers' bills for purchase and consumption of
1653+4 food and beverages, to the extent that the proceeds of the
1654+5 service charge are in fact turned over as tips or as a
1655+6 substitute for tips to the employees who participate
1656+7 directly in preparing, serving, hosting or cleaning up the
1657+8 food or beverage function with respect to which the
1658+9 service charge is imposed.
1659+10 (16) Tangible personal property sold to a purchaser if
1660+11 the purchaser is exempt from use tax by operation of
1661+12 federal law. This paragraph is exempt from the provisions
1662+13 of Section 2-70.
1663+14 (17) Tangible personal property sold to a common
1664+15 carrier by rail or motor that receives the physical
1665+16 possession of the property in Illinois and that transports
1666+17 the property, or shares with another common carrier in the
1667+18 transportation of the property, out of Illinois on a
1668+19 standard uniform bill of lading showing the seller of the
1669+20 property as the shipper or consignor of the property to a
1670+21 destination outside Illinois, for use outside Illinois.
1671+22 (18) Legal tender, currency, medallions, or gold or
1672+23 silver coinage issued by the State of Illinois, the
1673+24 government of the United States of America, or the
1674+25 government of any foreign country, and bullion.
1675+26 (19) Until July 1, 2003, oil field exploration,
1676+
1677+
1678+
1679+
1680+
1681+ SB3426 Enrolled - 47 - LRB103 37529 HLH 67652 b
1682+
1683+
1684+SB3426 Enrolled- 48 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 48 - LRB103 37529 HLH 67652 b
1685+ SB3426 Enrolled - 48 - LRB103 37529 HLH 67652 b
1686+1 drilling, and production equipment, including (i) rigs and
1687+2 parts of rigs, rotary rigs, cable tool rigs, and workover
1688+3 rigs, (ii) pipe and tubular goods, including casing and
1689+4 drill strings, (iii) pumps and pump-jack units, (iv)
1690+5 storage tanks and flow lines, (v) any individual
1691+6 replacement part for oil field exploration, drilling, and
1692+7 production equipment, and (vi) machinery and equipment
1693+8 purchased for lease; but excluding motor vehicles required
1694+9 to be registered under the Illinois Vehicle Code.
1695+10 (20) Photoprocessing machinery and equipment,
1696+11 including repair and replacement parts, both new and used,
1697+12 including that manufactured on special order, certified by
1698+13 the purchaser to be used primarily for photoprocessing,
1699+14 and including photoprocessing machinery and equipment
1700+15 purchased for lease.
1701+16 (21) Until July 1, 2028, coal and aggregate
1702+17 exploration, mining, off-highway hauling, processing,
1703+18 maintenance, and reclamation equipment, including
1704+19 replacement parts and equipment, and including equipment
1705+20 purchased for lease, but excluding motor vehicles required
1706+21 to be registered under the Illinois Vehicle Code. The
1707+22 changes made to this Section by Public Act 97-767 apply on
1708+23 and after July 1, 2003, but no claim for credit or refund
1709+24 is allowed on or after August 16, 2013 (the effective date
1710+25 of Public Act 98-456) for such taxes paid during the
1711+26 period beginning July 1, 2003 and ending on August 16,
1712+
1713+
1714+
1715+
1716+
1717+ SB3426 Enrolled - 48 - LRB103 37529 HLH 67652 b
1718+
1719+
1720+SB3426 Enrolled- 49 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 49 - LRB103 37529 HLH 67652 b
1721+ SB3426 Enrolled - 49 - LRB103 37529 HLH 67652 b
1722+1 2013 (the effective date of Public Act 98-456).
1723+2 (22) Until June 30, 2013, fuel and petroleum products
1724+3 sold to or used by an air carrier, certified by the carrier
1725+4 to be used for consumption, shipment, or storage in the
1726+5 conduct of its business as an air common carrier, for a
1727+6 flight destined for or returning from a location or
1728+7 locations outside the United States without regard to
1729+8 previous or subsequent domestic stopovers.
1730+9 Beginning July 1, 2013, fuel and petroleum products
1731+10 sold to or used by an air carrier, certified by the carrier
1732+11 to be used for consumption, shipment, or storage in the
1733+12 conduct of its business as an air common carrier, for a
1734+13 flight that (i) is engaged in foreign trade or is engaged
1735+14 in trade between the United States and any of its
1736+15 possessions and (ii) transports at least one individual or
1737+16 package for hire from the city of origination to the city
1738+17 of final destination on the same aircraft, without regard
1739+18 to a change in the flight number of that aircraft.
1740+19 (23) A transaction in which the purchase order is
1741+20 received by a florist who is located outside Illinois, but
1742+21 who has a florist located in Illinois deliver the property
1743+22 to the purchaser or the purchaser's donee in Illinois.
1744+23 (24) Fuel consumed or used in the operation of ships,
1745+24 barges, or vessels that are used primarily in or for the
1746+25 transportation of property or the conveyance of persons
1747+26 for hire on rivers bordering on this State if the fuel is
1748+
1749+
1750+
1751+
1752+
1753+ SB3426 Enrolled - 49 - LRB103 37529 HLH 67652 b
1754+
1755+
1756+SB3426 Enrolled- 50 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 50 - LRB103 37529 HLH 67652 b
1757+ SB3426 Enrolled - 50 - LRB103 37529 HLH 67652 b
1758+1 delivered by the seller to the purchaser's barge, ship, or
1759+2 vessel while it is afloat upon that bordering river.
1760+3 (25) Except as provided in item (25-5) of this
1761+4 Section, a motor vehicle sold in this State to a
1762+5 nonresident even though the motor vehicle is delivered to
1763+6 the nonresident in this State, if the motor vehicle is not
1764+7 to be titled in this State, and if a drive-away permit is
1765+8 issued to the motor vehicle as provided in Section 3-603
1766+9 of the Illinois Vehicle Code or if the nonresident
1767+10 purchaser has vehicle registration plates to transfer to
1768+11 the motor vehicle upon returning to his or her home state.
1769+12 The issuance of the drive-away permit or having the
1770+13 out-of-state registration plates to be transferred is
1771+14 prima facie evidence that the motor vehicle will not be
1772+15 titled in this State.
1773+16 (25-5) The exemption under item (25) does not apply if
1774+17 the state in which the motor vehicle will be titled does
1775+18 not allow a reciprocal exemption for a motor vehicle sold
1776+19 and delivered in that state to an Illinois resident but
1777+20 titled in Illinois. The tax collected under this Act on
1778+21 the sale of a motor vehicle in this State to a resident of
1779+22 another state that does not allow a reciprocal exemption
1780+23 shall be imposed at a rate equal to the state's rate of tax
1781+24 on taxable property in the state in which the purchaser is
1782+25 a resident, except that the tax shall not exceed the tax
1783+26 that would otherwise be imposed under this Act. At the
1784+
1785+
1786+
1787+
1788+
1789+ SB3426 Enrolled - 50 - LRB103 37529 HLH 67652 b
1790+
1791+
1792+SB3426 Enrolled- 51 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 51 - LRB103 37529 HLH 67652 b
1793+ SB3426 Enrolled - 51 - LRB103 37529 HLH 67652 b
1794+1 time of the sale, the purchaser shall execute a statement,
1795+2 signed under penalty of perjury, of his or her intent to
1796+3 title the vehicle in the state in which the purchaser is a
1797+4 resident within 30 days after the sale and of the fact of
1798+5 the payment to the State of Illinois of tax in an amount
1799+6 equivalent to the state's rate of tax on taxable property
1800+7 in his or her state of residence and shall submit the
1801+8 statement to the appropriate tax collection agency in his
1802+9 or her state of residence. In addition, the retailer must
1803+10 retain a signed copy of the statement in his or her
1804+11 records. Nothing in this item shall be construed to
1805+12 require the removal of the vehicle from this state
1806+13 following the filing of an intent to title the vehicle in
1807+14 the purchaser's state of residence if the purchaser titles
1808+15 the vehicle in his or her state of residence within 30 days
1809+16 after the date of sale. The tax collected under this Act in
1810+17 accordance with this item (25-5) shall be proportionately
1811+18 distributed as if the tax were collected at the 6.25%
1812+19 general rate imposed under this Act.
1813+20 (25-7) Beginning on July 1, 2007, no tax is imposed
1814+21 under this Act on the sale of an aircraft, as defined in
1815+22 Section 3 of the Illinois Aeronautics Act, if all of the
1816+23 following conditions are met:
1817+24 (1) the aircraft leaves this State within 15 days
1818+25 after the later of either the issuance of the final
1819+26 billing for the sale of the aircraft, or the
1820+
1821+
1822+
1823+
1824+
1825+ SB3426 Enrolled - 51 - LRB103 37529 HLH 67652 b
1826+
1827+
1828+SB3426 Enrolled- 52 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 52 - LRB103 37529 HLH 67652 b
1829+ SB3426 Enrolled - 52 - LRB103 37529 HLH 67652 b
1830+1 authorized approval for return to service, completion
1831+2 of the maintenance record entry, and completion of the
1832+3 test flight and ground test for inspection, as
1833+4 required by 14 CFR 91.407;
1834+5 (2) the aircraft is not based or registered in
1835+6 this State after the sale of the aircraft; and
1836+7 (3) the seller retains in his or her books and
1837+8 records and provides to the Department a signed and
1838+9 dated certification from the purchaser, on a form
1839+10 prescribed by the Department, certifying that the
1840+11 requirements of this item (25-7) are met. The
1841+12 certificate must also include the name and address of
1842+13 the purchaser, the address of the location where the
1843+14 aircraft is to be titled or registered, the address of
1844+15 the primary physical location of the aircraft, and
1845+16 other information that the Department may reasonably
1846+17 require.
1847+18 For purposes of this item (25-7):
1848+19 "Based in this State" means hangared, stored, or
1849+20 otherwise used, excluding post-sale customizations as
1850+21 defined in this Section, for 10 or more days in each
1851+22 12-month period immediately following the date of the sale
1852+23 of the aircraft.
1853+24 "Registered in this State" means an aircraft
1854+25 registered with the Department of Transportation,
1855+26 Aeronautics Division, or titled or registered with the
1856+
1857+
1858+
1859+
1860+
1861+ SB3426 Enrolled - 52 - LRB103 37529 HLH 67652 b
1862+
1863+
1864+SB3426 Enrolled- 53 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 53 - LRB103 37529 HLH 67652 b
1865+ SB3426 Enrolled - 53 - LRB103 37529 HLH 67652 b
1866+1 Federal Aviation Administration to an address located in
1867+2 this State.
1868+3 This paragraph (25-7) is exempt from the provisions of
1869+4 Section 2-70.
1870+5 (26) Semen used for artificial insemination of
1871+6 livestock for direct agricultural production.
1872+7 (27) Horses, or interests in horses, registered with
1873+8 and meeting the requirements of any of the Arabian Horse
1874+9 Club Registry of America, Appaloosa Horse Club, American
1875+10 Quarter Horse Association, United States Trotting
1876+11 Association, or Jockey Club, as appropriate, used for
1877+12 purposes of breeding or racing for prizes. This item (27)
1878+13 is exempt from the provisions of Section 2-70, and the
1879+14 exemption provided for under this item (27) applies for
1880+15 all periods beginning May 30, 1995, but no claim for
1881+16 credit or refund is allowed on or after January 1, 2008
1882+17 (the effective date of Public Act 95-88) for such taxes
1883+18 paid during the period beginning May 30, 2000 and ending
1884+19 on January 1, 2008 (the effective date of Public Act
1885+20 95-88).
1886+21 (28) Computers and communications equipment utilized
1887+22 for any hospital purpose and equipment used in the
1888+23 diagnosis, analysis, or treatment of hospital patients
1889+24 sold to a lessor who leases the equipment, under a lease of
1890+25 one year or longer executed or in effect at the time of the
1891+26 purchase, to a hospital that has been issued an active tax
1892+
1893+
1894+
1895+
1896+
1897+ SB3426 Enrolled - 53 - LRB103 37529 HLH 67652 b
1898+
1899+
1900+SB3426 Enrolled- 54 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 54 - LRB103 37529 HLH 67652 b
1901+ SB3426 Enrolled - 54 - LRB103 37529 HLH 67652 b
1902+1 exemption identification number by the Department under
1903+2 Section 1g of this Act.
1904+3 (29) Personal property sold to a lessor who leases the
1905+4 property, under a lease of one year or longer executed or
1906+5 in effect at the time of the purchase, to a governmental
1907+6 body that has been issued an active tax exemption
1908+7 identification number by the Department under Section 1g
1909+8 of this Act.
1910+9 (30) Beginning with taxable years ending on or after
1911+10 December 31, 1995 and ending with taxable years ending on
1912+11 or before December 31, 2004, personal property that is
1913+12 donated for disaster relief to be used in a State or
1914+13 federally declared disaster area in Illinois or bordering
1915+14 Illinois by a manufacturer or retailer that is registered
1916+15 in this State to a corporation, society, association,
1917+16 foundation, or institution that has been issued a sales
1918+17 tax exemption identification number by the Department that
1919+18 assists victims of the disaster who reside within the
1920+19 declared disaster area.
1921+20 (31) Beginning with taxable years ending on or after
1922+21 December 31, 1995 and ending with taxable years ending on
1923+22 or before December 31, 2004, personal property that is
1924+23 used in the performance of infrastructure repairs in this
1925+24 State, including, but not limited to, municipal roads and
1926+25 streets, access roads, bridges, sidewalks, waste disposal
1927+26 systems, water and sewer line extensions, water
1928+
1929+
1930+
1931+
1932+
1933+ SB3426 Enrolled - 54 - LRB103 37529 HLH 67652 b
1934+
1935+
1936+SB3426 Enrolled- 55 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 55 - LRB103 37529 HLH 67652 b
1937+ SB3426 Enrolled - 55 - LRB103 37529 HLH 67652 b
1938+1 distribution and purification facilities, storm water
1939+2 drainage and retention facilities, and sewage treatment
1940+3 facilities, resulting from a State or federally declared
1941+4 disaster in Illinois or bordering Illinois when such
1942+5 repairs are initiated on facilities located in the
1943+6 declared disaster area within 6 months after the disaster.
1944+7 (32) Beginning July 1, 1999, game or game birds sold
1945+8 at a "game breeding and hunting preserve area" as that
1946+9 term is used in the Wildlife Code. This paragraph is
1947+10 exempt from the provisions of Section 2-70.
1948+11 (33) A motor vehicle, as that term is defined in
1949+12 Section 1-146 of the Illinois Vehicle Code, that is
1950+13 donated to a corporation, limited liability company,
1951+14 society, association, foundation, or institution that is
1952+15 determined by the Department to be organized and operated
1953+16 exclusively for educational purposes. For purposes of this
1954+17 exemption, "a corporation, limited liability company,
1955+18 society, association, foundation, or institution organized
1956+19 and operated exclusively for educational purposes" means
1957+20 all tax-supported public schools, private schools that
1958+21 offer systematic instruction in useful branches of
1959+22 learning by methods common to public schools and that
1960+23 compare favorably in their scope and intensity with the
1961+24 course of study presented in tax-supported schools, and
1962+25 vocational or technical schools or institutes organized
1963+26 and operated exclusively to provide a course of study of
1964+
1965+
1966+
1967+
1968+
1969+ SB3426 Enrolled - 55 - LRB103 37529 HLH 67652 b
1970+
1971+
1972+SB3426 Enrolled- 56 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 56 - LRB103 37529 HLH 67652 b
1973+ SB3426 Enrolled - 56 - LRB103 37529 HLH 67652 b
1974+1 not less than 6 weeks duration and designed to prepare
1975+2 individuals to follow a trade or to pursue a manual,
1976+3 technical, mechanical, industrial, business, or commercial
1977+4 occupation.
1978+5 (34) Beginning January 1, 2000, personal property,
1979+6 including food, purchased through fundraising events for
1980+7 the benefit of a public or private elementary or secondary
1981+8 school, a group of those schools, or one or more school
1982+9 districts if the events are sponsored by an entity
1983+10 recognized by the school district that consists primarily
1984+11 of volunteers and includes parents and teachers of the
1985+12 school children. This paragraph does not apply to
1986+13 fundraising events (i) for the benefit of private home
1987+14 instruction or (ii) for which the fundraising entity
1988+15 purchases the personal property sold at the events from
1989+16 another individual or entity that sold the property for
1990+17 the purpose of resale by the fundraising entity and that
1991+18 profits from the sale to the fundraising entity. This
1992+19 paragraph is exempt from the provisions of Section 2-70.
1993+20 (35) Beginning January 1, 2000 and through December
1994+21 31, 2001, new or used automatic vending machines that
1995+22 prepare and serve hot food and beverages, including
1996+23 coffee, soup, and other items, and replacement parts for
1997+24 these machines. Beginning January 1, 2002 and through June
1998+25 30, 2003, machines and parts for machines used in
1999+26 commercial, coin-operated amusement and vending business
2000+
2001+
2002+
2003+
2004+
2005+ SB3426 Enrolled - 56 - LRB103 37529 HLH 67652 b
2006+
2007+
2008+SB3426 Enrolled- 57 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 57 - LRB103 37529 HLH 67652 b
2009+ SB3426 Enrolled - 57 - LRB103 37529 HLH 67652 b
2010+1 if a use or occupation tax is paid on the gross receipts
2011+2 derived from the use of the commercial, coin-operated
2012+3 amusement and vending machines. This paragraph is exempt
2013+4 from the provisions of Section 2-70.
2014+5 (35-5) Beginning August 23, 2001 and through June 30,
2015+6 2016, food for human consumption that is to be consumed
2016+7 off the premises where it is sold (other than alcoholic
2017+8 beverages, soft drinks, and food that has been prepared
2018+9 for immediate consumption) and prescription and
2019+10 nonprescription medicines, drugs, medical appliances, and
2020+11 insulin, urine testing materials, syringes, and needles
2021+12 used by diabetics, for human use, when purchased for use
2022+13 by a person receiving medical assistance under Article V
2023+14 of the Illinois Public Aid Code who resides in a licensed
2024+15 long-term care facility, as defined in the Nursing Home
2025+16 Care Act, or a licensed facility as defined in the ID/DD
2026+17 Community Care Act, the MC/DD Act, or the Specialized
2027+18 Mental Health Rehabilitation Act of 2013.
2028+19 (36) Beginning August 2, 2001, computers and
2029+20 communications equipment utilized for any hospital purpose
2030+21 and equipment used in the diagnosis, analysis, or
2031+22 treatment of hospital patients sold to a lessor who leases
2032+23 the equipment, under a lease of one year or longer
2033+24 executed or in effect at the time of the purchase, to a
2034+25 hospital that has been issued an active tax exemption
2035+26 identification number by the Department under Section 1g
2036+
2037+
2038+
2039+
2040+
2041+ SB3426 Enrolled - 57 - LRB103 37529 HLH 67652 b
2042+
2043+
2044+SB3426 Enrolled- 58 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 58 - LRB103 37529 HLH 67652 b
2045+ SB3426 Enrolled - 58 - LRB103 37529 HLH 67652 b
2046+1 of this Act. This paragraph is exempt from the provisions
2047+2 of Section 2-70.
2048+3 (37) Beginning August 2, 2001, personal property sold
2049+4 to a lessor who leases the property, under a lease of one
2050+5 year or longer executed or in effect at the time of the
2051+6 purchase, to a governmental body that has been issued an
2052+7 active tax exemption identification number by the
2053+8 Department under Section 1g of this Act. This paragraph is
2054+9 exempt from the provisions of Section 2-70.
2055+10 (38) Beginning on January 1, 2002 and through June 30,
2056+11 2016, tangible personal property purchased from an
2057+12 Illinois retailer by a taxpayer engaged in centralized
2058+13 purchasing activities in Illinois who will, upon receipt
2059+14 of the property in Illinois, temporarily store the
2060+15 property in Illinois (i) for the purpose of subsequently
2061+16 transporting it outside this State for use or consumption
2062+17 thereafter solely outside this State or (ii) for the
2063+18 purpose of being processed, fabricated, or manufactured
2064+19 into, attached to, or incorporated into other tangible
2065+20 personal property to be transported outside this State and
2066+21 thereafter used or consumed solely outside this State. The
2067+22 Director of Revenue shall, pursuant to rules adopted in
2068+23 accordance with the Illinois Administrative Procedure Act,
2069+24 issue a permit to any taxpayer in good standing with the
2070+25 Department who is eligible for the exemption under this
2071+26 paragraph (38). The permit issued under this paragraph
2072+
2073+
2074+
2075+
2076+
2077+ SB3426 Enrolled - 58 - LRB103 37529 HLH 67652 b
2078+
2079+
2080+SB3426 Enrolled- 59 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 59 - LRB103 37529 HLH 67652 b
2081+ SB3426 Enrolled - 59 - LRB103 37529 HLH 67652 b
2082+1 (38) shall authorize the holder, to the extent and in the
2083+2 manner specified in the rules adopted under this Act, to
2084+3 purchase tangible personal property from a retailer exempt
2085+4 from the taxes imposed by this Act. Taxpayers shall
2086+5 maintain all necessary books and records to substantiate
2087+6 the use and consumption of all such tangible personal
2088+7 property outside of the State of Illinois.
2089+8 (39) Beginning January 1, 2008, tangible personal
2090+9 property used in the construction or maintenance of a
2091+10 community water supply, as defined under Section 3.145 of
2092+11 the Environmental Protection Act, that is operated by a
2093+12 not-for-profit corporation that holds a valid water supply
2094+13 permit issued under Title IV of the Environmental
2095+14 Protection Act. This paragraph is exempt from the
2096+15 provisions of Section 2-70.
2097+16 (40) Beginning January 1, 2010 and continuing through
2098+17 December 31, 2029, materials, parts, equipment,
2099+18 components, and furnishings incorporated into or upon an
2100+19 aircraft as part of the modification, refurbishment,
2101+20 completion, replacement, repair, or maintenance of the
2102+21 aircraft. This exemption includes consumable supplies used
2103+22 in the modification, refurbishment, completion,
2104+23 replacement, repair, and maintenance of aircraft. However,
2105+24 until January 1, 2024, this exemption excludes any
2106+25 materials, parts, equipment, components, and consumable
2107+26 supplies used in the modification, replacement, repair,
2108+
2109+
2110+
2111+
2112+
2113+ SB3426 Enrolled - 59 - LRB103 37529 HLH 67652 b
2114+
2115+
2116+SB3426 Enrolled- 60 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 60 - LRB103 37529 HLH 67652 b
2117+ SB3426 Enrolled - 60 - LRB103 37529 HLH 67652 b
2118+1 and maintenance of aircraft engines or power plants,
2119+2 whether such engines or power plants are installed or
2120+3 uninstalled upon any such aircraft. "Consumable supplies"
2121+4 include, but are not limited to, adhesive, tape,
2122+5 sandpaper, general purpose lubricants, cleaning solution,
2123+6 latex gloves, and protective films.
2124+7 Beginning January 1, 2010 and continuing through
2125+8 December 31, 2023, this exemption applies only to the sale
2126+9 of qualifying tangible personal property to persons who
2127+10 modify, refurbish, complete, replace, or maintain an
2128+11 aircraft and who (i) hold an Air Agency Certificate and
2129+12 are empowered to operate an approved repair station by the
2130+13 Federal Aviation Administration, (ii) have a Class IV
2131+14 Rating, and (iii) conduct operations in accordance with
2132+15 Part 145 of the Federal Aviation Regulations. The
2133+16 exemption does not include aircraft operated by a
2134+17 commercial air carrier providing scheduled passenger air
2135+18 service pursuant to authority issued under Part 121 or
2136+19 Part 129 of the Federal Aviation Regulations. From January
2137+20 1, 2024 through December 31, 2029, this exemption applies
2138+21 only to the sale use of qualifying tangible personal
2139+22 property to by: (A) persons who modify, refurbish,
2140+23 complete, repair, replace, or maintain aircraft and who
2141+24 (i) hold an Air Agency Certificate and are empowered to
2142+25 operate an approved repair station by the Federal Aviation
2143+26 Administration, (ii) have a Class IV Rating, and (iii)
2144+
2145+
2146+
2147+
2148+
2149+ SB3426 Enrolled - 60 - LRB103 37529 HLH 67652 b
2150+
2151+
2152+SB3426 Enrolled- 61 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 61 - LRB103 37529 HLH 67652 b
2153+ SB3426 Enrolled - 61 - LRB103 37529 HLH 67652 b
2154+1 conduct operations in accordance with Part 145 of the
2155+2 Federal Aviation Regulations; and (B) persons who engage
2156+3 in the modification, replacement, repair, and maintenance
2157+4 of aircraft engines or power plants without regard to
2158+5 whether or not those persons meet the qualifications of
2159+6 item (A).
2160+7 The changes made to this paragraph (40) by Public Act
2161+8 98-534 are declarative of existing law. It is the intent
2162+9 of the General Assembly that the exemption under this
2163+10 paragraph (40) applies continuously from January 1, 2010
2164+11 through December 31, 2024; however, no claim for credit or
2165+12 refund is allowed for taxes paid as a result of the
2166+13 disallowance of this exemption on or after January 1, 2015
2167+14 and prior to February 5, 2020 (the effective date of
2168+15 Public Act 101-629).
2169+16 (41) Tangible personal property sold to a
2170+17 public-facilities corporation, as described in Section
2171+18 11-65-10 of the Illinois Municipal Code, for purposes of
2172+19 constructing or furnishing a municipal convention hall,
2173+20 but only if the legal title to the municipal convention
2174+21 hall is transferred to the municipality without any
2175+22 further consideration by or on behalf of the municipality
2176+23 at the time of the completion of the municipal convention
2177+24 hall or upon the retirement or redemption of any bonds or
2178+25 other debt instruments issued by the public-facilities
2179+26 corporation in connection with the development of the
2180+
2181+
2182+
2183+
2184+
2185+ SB3426 Enrolled - 61 - LRB103 37529 HLH 67652 b
2186+
2187+
2188+SB3426 Enrolled- 62 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 62 - LRB103 37529 HLH 67652 b
2189+ SB3426 Enrolled - 62 - LRB103 37529 HLH 67652 b
2190+1 municipal convention hall. This exemption includes
2191+2 existing public-facilities corporations as provided in
2192+3 Section 11-65-25 of the Illinois Municipal Code. This
2193+4 paragraph is exempt from the provisions of Section 2-70.
2194+5 (42) Beginning January 1, 2017 and through December
2195+6 31, 2026, menstrual pads, tampons, and menstrual cups.
2196+7 (43) Merchandise that is subject to the Rental
2197+8 Purchase Agreement Occupation and Use Tax. The purchaser
2198+9 must certify that the item is purchased to be rented
2199+10 subject to a rental-purchase rental purchase agreement, as
2200+11 defined in the Rental-Purchase Rental Purchase Agreement
2201+12 Act, and provide proof of registration under the Rental
2202+13 Purchase Agreement Occupation and Use Tax Act. This
2203+14 paragraph is exempt from the provisions of Section 2-70.
2204+15 (44) Qualified tangible personal property used in the
2205+16 construction or operation of a data center that has been
2206+17 granted a certificate of exemption by the Department of
2207+18 Commerce and Economic Opportunity, whether that tangible
2208+19 personal property is purchased by the owner, operator, or
2209+20 tenant of the data center or by a contractor or
2210+21 subcontractor of the owner, operator, or tenant. Data
2211+22 centers that would have qualified for a certificate of
2212+23 exemption prior to January 1, 2020 had Public Act 101-31
2213+24 been in effect, may apply for and obtain an exemption for
2214+25 subsequent purchases of computer equipment or enabling
2215+26 software purchased or leased to upgrade, supplement, or
2216+
2217+
2218+
2219+
2220+
2221+ SB3426 Enrolled - 62 - LRB103 37529 HLH 67652 b
2222+
2223+
2224+SB3426 Enrolled- 63 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 63 - LRB103 37529 HLH 67652 b
2225+ SB3426 Enrolled - 63 - LRB103 37529 HLH 67652 b
2226+1 replace computer equipment or enabling software purchased
2227+2 or leased in the original investment that would have
2228+3 qualified.
2229+4 The Department of Commerce and Economic Opportunity
2230+5 shall grant a certificate of exemption under this item
2231+6 (44) to qualified data centers as defined by Section
2232+7 605-1025 of the Department of Commerce and Economic
2233+8 Opportunity Law of the Civil Administrative Code of
2234+9 Illinois.
2235+10 For the purposes of this item (44):
2236+11 "Data center" means a building or a series of
2237+12 buildings rehabilitated or constructed to house
2238+13 working servers in one physical location or multiple
2239+14 sites within the State of Illinois.
2240+15 "Qualified tangible personal property" means:
2241+16 electrical systems and equipment; climate control and
2242+17 chilling equipment and systems; mechanical systems and
2243+18 equipment; monitoring and secure systems; emergency
2244+19 generators; hardware; computers; servers; data storage
2245+20 devices; network connectivity equipment; racks;
2246+21 cabinets; telecommunications cabling infrastructure;
2247+22 raised floor systems; peripheral components or
2248+23 systems; software; mechanical, electrical, or plumbing
2249+24 systems; battery systems; cooling systems and towers;
2250+25 temperature control systems; other cabling; and other
2251+26 data center infrastructure equipment and systems
2252+
2253+
2254+
2255+
2256+
2257+ SB3426 Enrolled - 63 - LRB103 37529 HLH 67652 b
2258+
2259+
2260+SB3426 Enrolled- 64 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 64 - LRB103 37529 HLH 67652 b
2261+ SB3426 Enrolled - 64 - LRB103 37529 HLH 67652 b
2262+1 necessary to operate qualified tangible personal
2263+2 property, including fixtures; and component parts of
2264+3 any of the foregoing, including installation,
2265+4 maintenance, repair, refurbishment, and replacement of
2266+5 qualified tangible personal property to generate,
2267+6 transform, transmit, distribute, or manage electricity
2268+7 necessary to operate qualified tangible personal
2269+8 property; and all other tangible personal property
2270+9 that is essential to the operations of a computer data
2271+10 center. The term "qualified tangible personal
2272+11 property" also includes building materials physically
2273+12 incorporated into the qualifying data center. To
2274+13 document the exemption allowed under this Section, the
2275+14 retailer must obtain from the purchaser a copy of the
2276+15 certificate of eligibility issued by the Department of
2277+16 Commerce and Economic Opportunity.
2278+17 This item (44) is exempt from the provisions of
2279+18 Section 2-70.
2280+19 (45) Beginning January 1, 2020 and through December
2281+20 31, 2020, sales of tangible personal property made by a
2282+21 marketplace seller over a marketplace for which tax is due
2283+22 under this Act but for which use tax has been collected and
2284+23 remitted to the Department by a marketplace facilitator
2285+24 under Section 2d of the Use Tax Act are exempt from tax
2286+25 under this Act. A marketplace seller claiming this
2287+26 exemption shall maintain books and records demonstrating
2288+
2289+
2290+
2291+
2292+
2293+ SB3426 Enrolled - 64 - LRB103 37529 HLH 67652 b
2294+
2295+
2296+SB3426 Enrolled- 65 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 65 - LRB103 37529 HLH 67652 b
2297+ SB3426 Enrolled - 65 - LRB103 37529 HLH 67652 b
2298+1 that the use tax on such sales has been collected and
2299+2 remitted by a marketplace facilitator. Marketplace sellers
2300+3 that have properly remitted tax under this Act on such
2301+4 sales may file a claim for credit as provided in Section 6
2302+5 of this Act. No claim is allowed, however, for such taxes
2303+6 for which a credit or refund has been issued to the
2304+7 marketplace facilitator under the Use Tax Act, or for
2305+8 which the marketplace facilitator has filed a claim for
2306+9 credit or refund under the Use Tax Act.
2307+10 (46) Beginning July 1, 2022, breast pumps, breast pump
2308+11 collection and storage supplies, and breast pump kits.
2309+12 This item (46) is exempt from the provisions of Section
2310+13 2-70. As used in this item (46):
2311+14 "Breast pump" means an electrically controlled or
2312+15 manually controlled pump device designed or marketed to be
2313+16 used to express milk from a human breast during lactation,
2314+17 including the pump device and any battery, AC adapter, or
2315+18 other power supply unit that is used to power the pump
2316+19 device and is packaged and sold with the pump device at the
2317+20 time of sale.
2318+21 "Breast pump collection and storage supplies" means
2319+22 items of tangible personal property designed or marketed
2320+23 to be used in conjunction with a breast pump to collect
2321+24 milk expressed from a human breast and to store collected
2322+25 milk until it is ready for consumption.
2323+26 "Breast pump collection and storage supplies"
2324+
2325+
2326+
2327+
2328+
2329+ SB3426 Enrolled - 65 - LRB103 37529 HLH 67652 b
2330+
2331+
2332+SB3426 Enrolled- 66 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 66 - LRB103 37529 HLH 67652 b
2333+ SB3426 Enrolled - 66 - LRB103 37529 HLH 67652 b
2334+1 includes, but is not limited to: breast shields and breast
2335+2 shield connectors; breast pump tubes and tubing adapters;
2336+3 breast pump valves and membranes; backflow protectors and
2337+4 backflow protector adaptors; bottles and bottle caps
2338+5 specific to the operation of the breast pump; and breast
2339+6 milk storage bags.
2340+7 "Breast pump collection and storage supplies" does not
2341+8 include: (1) bottles and bottle caps not specific to the
2342+9 operation of the breast pump; (2) breast pump travel bags
2343+10 and other similar carrying accessories, including ice
2344+11 packs, labels, and other similar products; (3) breast pump
2345+12 cleaning supplies; (4) nursing bras, bra pads, breast
2346+13 shells, and other similar products; and (5) creams,
2347+14 ointments, and other similar products that relieve
2348+15 breastfeeding-related symptoms or conditions of the
2349+16 breasts or nipples, unless sold as part of a breast pump
2350+17 kit that is pre-packaged by the breast pump manufacturer
2351+18 or distributor.
2352+19 "Breast pump kit" means a kit that: (1) contains no
2353+20 more than a breast pump, breast pump collection and
2354+21 storage supplies, a rechargeable battery for operating the
2355+22 breast pump, a breastmilk cooler, bottle stands, ice
2356+23 packs, and a breast pump carrying case; and (2) is
2357+24 pre-packaged as a breast pump kit by the breast pump
2358+25 manufacturer or distributor.
2359+26 (47) Tangible personal property sold by or on behalf
2360+
2361+
2362+
2363+
2364+
2365+ SB3426 Enrolled - 66 - LRB103 37529 HLH 67652 b
2366+
2367+
2368+SB3426 Enrolled- 67 -LRB103 37529 HLH 67652 b SB3426 Enrolled - 67 - LRB103 37529 HLH 67652 b
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2370+1 of the State Treasurer pursuant to the Revised Uniform
2371+2 Unclaimed Property Act. This item (47) is exempt from the
2372+3 provisions of Section 2-70.
2373+4 (48) Beginning on January 1, 2024, tangible personal
2374+5 property purchased by an active duty member of the armed
2375+6 forces of the United States who presents valid military
2376+7 identification and purchases the property using a form of
2377+8 payment where the federal government is the payor. The
2378+9 member of the armed forces must complete, at the point of
2379+10 sale, a form prescribed by the Department of Revenue
2380+11 documenting that the transaction is eligible for the
2381+12 exemption under this paragraph. Retailers must keep the
2382+13 form as documentation of the exemption in their records
2383+14 for a period of not less than 6 years. "Armed forces of the
2384+15 United States" means the United States Army, Navy, Air
2385+16 Force, Marine Corps, or Coast Guard. This paragraph is
2386+17 exempt from the provisions of Section 2-70.
2387+18 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
2388+19 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
2389+20 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
2390+21 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
2391+22 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
2392+23 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
2393+24 12-12-23.)
2394+25 Section 20. The Motor Fuel Tax Law is amended by changing
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2405+1 Section 2 as follows:
2406+2 (35 ILCS 505/2) (from Ch. 120, par. 418)
2407+3 Sec. 2. A tax is imposed on the privilege of operating
2408+4 motor vehicles upon the public highways and recreational-type
2409+5 watercraft upon the waters of this State.
2410+6 (a) Prior to August 1, 1989, the tax is imposed at the rate
2411+7 of 13 cents per gallon on all motor fuel used in motor vehicles
2412+8 operating on the public highways and recreational type
2413+9 watercraft operating upon the waters of this State. Beginning
2414+10 on August 1, 1989 and until January 1, 1990, the rate of the
2415+11 tax imposed in this paragraph shall be 16 cents per gallon.
2416+12 Beginning January 1, 1990 and until July 1, 2019, the rate of
2417+13 tax imposed in this paragraph, including the tax on compressed
2418+14 natural gas, shall be 19 cents per gallon. Beginning July 1,
2419+15 2019 and until July 1, 2020, the rate of tax imposed in this
2420+16 paragraph shall be 38 cents per gallon. Beginning July 1, 2020
2421+17 and until July 1, 2021, the rate of tax imposed in this
2422+18 paragraph shall be 38.7 cents per gallon. Beginning July 1,
2423+19 2021 and until January 1, 2023, the rate of tax imposed in this
2424+20 paragraph shall be 39.2 cents per gallon. On January 1, 2023,
2425+21 the rate of tax imposed in this paragraph shall be increased by
2426+22 an amount equal to the percentage increase, if any, in the
2427+23 Consumer Price Index for All Urban Consumers for all items
2428+24 published by the United States Department of Labor for the 12
2429+25 months ending in September of 2022. On July 1, 2023, and on
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2440+1 July 1 of each subsequent year, the rate of tax imposed in this
2441+2 paragraph shall be increased by an amount equal to the
2442+3 percentage increase, if any, in the Consumer Price Index for
2443+4 All Urban Consumers for all items published by the United
2444+5 States Department of Labor for the 12 months ending in March of
2445+6 the year in which the increase takes place. The percentage
2446+7 increase in the Consumer Price Index shall be calculated as
2447+8 follows: (1) calculate the average Consumer Price Index for
2448+9 the full 12 months ending in March of the year in which the
2449+10 increase takes place; (2) calculate the average Consumer Price
2450+11 Index for the full 12 months ending in March of the year
2451+12 immediately preceding the year in which the increase takes
2452+13 place; (3) calculate the percentage increase, if any, in the
2453+14 current-year average determined under item (1) over the
2454+15 preceding-year average determined under item (2). The rate
2455+16 shall be rounded to the nearest one-tenth of one cent.
2456+17 (a-5) Beginning on July 1, 2022 and through December 31,
2457+18 2022, each retailer of motor fuel shall cause the following
2458+19 notice to be posted in a prominently visible place on each
2459+20 retail dispensing device that is used to dispense motor fuel
2460+21 in the State of Illinois: "As of July 1, 2022, the State of
2461+22 Illinois has suspended the inflation adjustment to the motor
2462+23 fuel tax through December 31, 2022. The price on this pump
2463+24 should reflect the suspension of the tax increase." The notice
2464+25 shall be printed in bold print on a sign that is no smaller
2465+26 than 4 inches by 8 inches. The sign shall be clearly visible to
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2476+1 customers. Any retailer who fails to post or maintain a
2477+2 required sign through December 31, 2022 is guilty of a petty
2478+3 offense for which the fine shall be $500 per day per each
2479+4 retail premises where a violation occurs.
2480+5 (b) Until July 1, 2019, the tax on the privilege of
2481+6 operating motor vehicles which use diesel fuel, liquefied
2482+7 natural gas, or propane shall be the rate according to
2483+8 paragraph (a) plus an additional 2 1/2 cents per gallon.
2484+9 Beginning July 1, 2019, the tax on the privilege of operating
2485+10 motor vehicles which use diesel fuel, liquefied natural gas,
2486+11 or propane shall be the rate according to subsection (a) plus
2487+12 an additional 7.5 cents per gallon. "Diesel fuel" is defined
2488+13 as any product intended for use or offered for sale as a fuel
2489+14 for engines in which the fuel is injected into the combustion
2490+15 chamber and ignited by pressure without electric spark.
2491+16 (c) A tax is imposed upon the privilege of engaging in the
2492+17 business of selling motor fuel as a retailer or reseller on all
2493+18 motor fuel used in motor vehicles operating on the public
2494+19 highways and recreational type watercraft operating upon the
2495+20 waters of this State: (1) at the rate of 3 cents per gallon on
2496+21 motor fuel owned or possessed by such retailer or reseller at
2497+22 12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
2498+23 per gallon on motor fuel owned or possessed by such retailer or
2499+24 reseller at 12:01 A.M. on January 1, 1990.
2500+25 Retailers and resellers who are subject to this additional
2501+26 tax shall be required to inventory such motor fuel and pay this
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2512+1 additional tax in a manner prescribed by the Department of
2513+2 Revenue.
2514+3 The tax imposed in this paragraph (c) shall be in addition
2515+4 to all other taxes imposed by the State of Illinois or any unit
2516+5 of local government in this State.
2517+6 (d) Except as provided in Section 2a, the collection of a
2518+7 tax based on gallonage of gasoline used for the propulsion of
2519+8 any aircraft is prohibited on and after October 1, 1979, and
2520+9 the collection of a tax based on gallonage of special fuel used
2521+10 for the propulsion of any aircraft is prohibited on and after
2522+11 December 1, 2019.
2523+12 (e) The collection of a tax, based on gallonage of all
2524+13 products commonly or commercially known or sold as 1-K
2525+14 kerosene, regardless of its classification or uses, is
2526+15 prohibited (i) on and after July 1, 1992 until December 31,
2527+16 1999, except when the 1-K kerosene is either: (1) delivered
2528+17 into bulk storage facilities of a bulk user, or (2) delivered
2529+18 directly into the fuel supply tanks of motor vehicles and (ii)
2530+19 on and after January 1, 2000. Beginning on January 1, 2000, the
2531+20 collection of a tax, based on gallonage of all products
2532+21 commonly or commercially known or sold as 1-K kerosene,
2533+22 regardless of its classification or uses, is prohibited except
2534+23 when the 1-K kerosene is delivered directly into a storage
2535+24 tank that is located at a facility that has withdrawal
2536+25 facilities that are readily accessible to and are capable of
2537+26 dispensing 1-K kerosene into the fuel supply tanks of motor
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2548+1 vehicles. For purposes of this subsection (e), a facility is
2549+2 considered to have withdrawal facilities that are not "readily
2550+3 accessible to and capable of dispensing 1-K kerosene into the
2551+4 fuel supply tanks of motor vehicles" only if the 1-K kerosene
2552+5 is delivered from: (i) a dispenser hose that is short enough so
2553+6 that it will not reach the fuel supply tank of a motor vehicle
2554+7 or (ii) a dispenser that is enclosed by a fence or other
2555+8 physical barrier so that a vehicle cannot pull alongside the
2556+9 dispenser to permit fueling.
2557+10 Any person who sells or uses 1-K kerosene for use in motor
2558+11 vehicles upon which the tax imposed by this Law has not been
2559+12 paid shall be liable for any tax due on the sales or use of 1-K
2560+13 kerosene.
2561+14 As used in this Section, "Consumer Price Index" means the
2562+15 index published by the Bureau of Labor Statistics of the
2563+16 United States Department of Labor that measures the average
2564+17 change in prices of goods and services purchased by all urban
2565+18 consumers, United States city average, all items, 1982-84 =
2566+19 100.
2567+20 (Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
2568+21 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
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