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Illinois Senate Bill SB3476

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3476 Compare Versions

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1-Public Act 103-0643
21 SB3476 EnrolledLRB103 34190 HLH 64013 b SB3476 Enrolled LRB103 34190 HLH 64013 b
32 SB3476 Enrolled LRB103 34190 HLH 64013 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 Use Tax Act is amended by changing Section
8-3-5 as follows:
9-(35 ILCS 105/3-5)
10-(Text of Section before amendment by P.A. 103-384)
11-Sec. 3-5. Exemptions. Use of the following tangible
12-personal property is exempt from the tax imposed by this Act:
13-(1) Personal property purchased from a corporation,
14-society, association, foundation, institution, or
15-organization, other than a limited liability company, that is
16-organized and operated as a not-for-profit service enterprise
17-for the benefit of persons 65 years of age or older if the
18-personal property was not purchased by the enterprise for the
19-purpose of resale by the enterprise.
20-(2) Personal property purchased by a not-for-profit
21-Illinois county fair association for use in conducting,
22-operating, or promoting the county fair.
23-(3) Personal property purchased by a not-for-profit arts
24-or cultural organization that establishes, by proof required
25-by the Department by rule, that it has received an exemption
26-under Section 501(c)(3) of the Internal Revenue Code and that
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 Use Tax Act is amended by changing Section
7+5 3-5 as follows:
8+6 (35 ILCS 105/3-5)
9+7 (Text of Section before amendment by P.A. 103-384)
10+8 Sec. 3-5. Exemptions. Use of the following tangible
11+9 personal property is exempt from the tax imposed by this Act:
12+10 (1) Personal property purchased from a corporation,
13+11 society, association, foundation, institution, or
14+12 organization, other than a limited liability company, that is
15+13 organized and operated as a not-for-profit service enterprise
16+14 for the benefit of persons 65 years of age or older if the
17+15 personal property was not purchased by the enterprise for the
18+16 purpose of resale by the enterprise.
19+17 (2) Personal property purchased by a not-for-profit
20+18 Illinois county fair association for use in conducting,
21+19 operating, or promoting the county fair.
22+20 (3) Personal property purchased by a not-for-profit arts
23+21 or cultural organization that establishes, by proof required
24+22 by the Department by rule, that it has received an exemption
25+23 under Section 501(c)(3) of the Internal Revenue Code and that
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33-is organized and operated primarily for the presentation or
34-support of arts or cultural programming, activities, or
35-services. These organizations include, but are not limited to,
36-music and dramatic arts organizations such as symphony
37-orchestras and theatrical groups, arts and cultural service
38-organizations, local arts councils, visual arts organizations,
39-and media arts organizations. On and after July 1, 2001 (the
40-effective date of Public Act 92-35), however, an entity
41-otherwise eligible for this exemption shall not make tax-free
42-purchases unless it has an active identification number issued
43-by the Department.
44-(4) Personal property purchased by a governmental body, by
45-a corporation, society, association, foundation, or
46-institution organized and operated exclusively for charitable,
47-religious, or educational purposes, or by a not-for-profit
48-corporation, society, association, foundation, institution, or
49-organization that has no compensated officers or employees and
50-that is organized and operated primarily for the recreation of
51-persons 55 years of age or older. A limited liability company
52-may qualify for the exemption under this paragraph only if the
53-limited liability company is organized and operated
54-exclusively for educational purposes. On and after July 1,
55-1987, however, no entity otherwise eligible for this exemption
56-shall make tax-free purchases unless it has an active
57-exemption identification number issued by the Department.
58-(5) Until July 1, 2003, a passenger car that is a
59-
60-
61-replacement vehicle to the extent that the purchase price of
62-the car is subject to the Replacement Vehicle Tax.
63-(6) Until July 1, 2003 and beginning again on September 1,
64-2004 through August 30, 2014, graphic arts machinery and
65-equipment, including repair and replacement parts, both new
66-and used, and including that manufactured on special order,
67-certified by the purchaser to be used primarily for graphic
68-arts production, and including machinery and equipment
69-purchased for lease. Equipment includes chemicals or chemicals
70-acting as catalysts but only if the chemicals or chemicals
71-acting as catalysts effect a direct and immediate change upon
72-a graphic arts product. Beginning on July 1, 2017, graphic
73-arts machinery and equipment is included in the manufacturing
74-and assembling machinery and equipment exemption under
75-paragraph (18).
76-(7) Farm chemicals.
77-(8) Legal tender, currency, medallions, or gold or silver
78-coinage issued by the State of Illinois, the government of the
79-United States of America, or the government of any foreign
80-country, and bullion.
81-(9) Personal property purchased from a teacher-sponsored
82-student organization affiliated with an elementary or
83-secondary school located in Illinois.
84-(10) A motor vehicle that is used for automobile renting,
85-as defined in the Automobile Renting Occupation and Use Tax
86-Act.
87-
88-
89-(11) Farm machinery and equipment, both new and used,
90-including that manufactured on special order, certified by the
91-purchaser to be used primarily for production agriculture or
92-State or federal agricultural programs, including individual
93-replacement parts for the machinery and equipment, including
94-machinery and equipment purchased for lease, and including
95-implements of husbandry defined in Section 1-130 of the
96-Illinois Vehicle Code, farm machinery and agricultural
97-chemical and fertilizer spreaders, and nurse wagons required
98-to be registered under Section 3-809 of the Illinois Vehicle
99-Code, but excluding other motor vehicles required to be
100-registered under the Illinois Vehicle Code. Horticultural
101-polyhouses or hoop houses used for propagating, growing, or
102-overwintering plants shall be considered farm machinery and
103-equipment under this item (11). Agricultural chemical tender
104-tanks and dry boxes shall include units sold separately from a
105-motor vehicle required to be licensed and units sold mounted
106-on a motor vehicle required to be licensed if the selling price
107-of the tender is separately stated.
108-Farm machinery and equipment shall include precision
109-farming equipment that is installed or purchased to be
110-installed on farm machinery and equipment, including, but not
111-limited to, tractors, harvesters, sprayers, planters, seeders,
112-or spreaders. Precision farming equipment includes, but is not
113-limited to, soil testing sensors, computers, monitors,
114-software, global positioning and mapping systems, and other
115-
116-
117-such equipment.
118-Farm machinery and equipment also includes computers,
119-sensors, software, and related equipment used primarily in the
120-computer-assisted operation of production agriculture
121-facilities, equipment, and activities such as, but not limited
122-to, the collection, monitoring, and correlation of animal and
123-crop data for the purpose of formulating animal diets and
124-agricultural chemicals.
125-Beginning on January 1, 2024, farm machinery and equipment
126-also includes electrical power generation equipment used
127-primarily for production agriculture.
128-This item (11) is exempt from the provisions of Section
129-3-90.
130-(12) Until June 30, 2013, fuel and petroleum products sold
131-to or used by an air common carrier, certified by the carrier
132-to be used for consumption, shipment, or storage in the
133-conduct of its business as an air common carrier, for a flight
134-destined for or returning from a location or locations outside
135-the United States without regard to previous or subsequent
136-domestic stopovers.
137-Beginning July 1, 2013, fuel and petroleum products sold
138-to or used by an air carrier, certified by the carrier to be
139-used for consumption, shipment, or storage in the conduct of
140-its business as an air common carrier, for a flight that (i) is
141-engaged in foreign trade or is engaged in trade between the
142-United States and any of its possessions and (ii) transports
143-
144-
145-at least one individual or package for hire from the city of
146-origination to the city of final destination on the same
147-aircraft, without regard to a change in the flight number of
148-that aircraft.
149-(13) Proceeds of mandatory service charges separately
150-stated on customers' bills for the purchase and consumption of
151-food and beverages purchased at retail from a retailer, to the
152-extent that the proceeds of the service charge are in fact
153-turned over as tips or as a substitute for tips to the
154-employees who participate directly in preparing, serving,
155-hosting or cleaning up the food or beverage function with
156-respect to which the service charge is imposed.
157-(14) Until July 1, 2003, oil field exploration, drilling,
158-and production equipment, including (i) rigs and parts of
159-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
160-pipe and tubular goods, including casing and drill strings,
161-(iii) pumps and pump-jack units, (iv) storage tanks and flow
162-lines, (v) any individual replacement part for oil field
163-exploration, drilling, and production equipment, and (vi)
164-machinery and equipment purchased for lease; but excluding
165-motor vehicles required to be registered under the Illinois
166-Vehicle Code.
167-(15) Photoprocessing machinery and equipment, including
168-repair and replacement parts, both new and used, including
169-that manufactured on special order, certified by the purchaser
170-to be used primarily for photoprocessing, and including
171-
172-
173-photoprocessing machinery and equipment purchased for lease.
174-(16) Until July 1, 2028, coal and aggregate exploration,
175-mining, off-highway hauling, processing, maintenance, and
176-reclamation equipment, including replacement parts and
177-equipment, and including equipment purchased for lease, but
178-excluding motor vehicles required to be registered under the
179-Illinois Vehicle Code. The changes made to this Section by
180-Public Act 97-767 apply on and after July 1, 2003, but no claim
181-for credit or refund is allowed on or after August 16, 2013
182-(the effective date of Public Act 98-456) for such taxes paid
183-during the period beginning July 1, 2003 and ending on August
184-16, 2013 (the effective date of Public Act 98-456).
185-(17) Until July 1, 2003, distillation machinery and
186-equipment, sold as a unit or kit, assembled or installed by the
187-retailer, certified by the user to be used only for the
188-production of ethyl alcohol that will be used for consumption
189-as motor fuel or as a component of motor fuel for the personal
190-use of the user, and not subject to sale or resale.
191-(18) Manufacturing and assembling machinery and equipment
192-used primarily in the process of manufacturing or assembling
193-tangible personal property for wholesale or retail sale or
194-lease, whether that sale or lease is made directly by the
195-manufacturer or by some other person, whether the materials
196-used in the process are owned by the manufacturer or some other
197-person, or whether that sale or lease is made apart from or as
198-an incident to the seller's engaging in the service occupation
199-
200-
201-of producing machines, tools, dies, jigs, patterns, gauges, or
202-other similar items of no commercial value on special order
203-for a particular purchaser. The exemption provided by this
204-paragraph (18) includes production related tangible personal
205-property, as defined in Section 3-50, purchased on or after
206-July 1, 2019. The exemption provided by this paragraph (18)
207-does not include machinery and equipment used in (i) the
208-generation of electricity for wholesale or retail sale; (ii)
209-the generation or treatment of natural or artificial gas for
210-wholesale or retail sale that is delivered to customers
211-through pipes, pipelines, or mains; or (iii) the treatment of
212-water for wholesale or retail sale that is delivered to
213-customers through pipes, pipelines, or mains. The provisions
214-of Public Act 98-583 are declaratory of existing law as to the
215-meaning and scope of this exemption. Beginning on July 1,
216-2017, the exemption provided by this paragraph (18) includes,
217-but is not limited to, graphic arts machinery and equipment,
218-as defined in paragraph (6) of this Section.
219-(19) Personal property delivered to a purchaser or
220-purchaser's donee inside Illinois when the purchase order for
221-that personal property was received by a florist located
222-outside Illinois who has a florist located inside Illinois
223-deliver the personal property.
224-(20) Semen used for artificial insemination of livestock
225-for direct agricultural production.
226-(21) Horses, or interests in horses, registered with and
227-
228-
229-meeting the requirements of any of the Arabian Horse Club
230-Registry of America, Appaloosa Horse Club, American Quarter
231-Horse Association, United States Trotting Association, or
232-Jockey Club, as appropriate, used for purposes of breeding or
233-racing for prizes. This item (21) is exempt from the
234-provisions of Section 3-90, and the exemption provided for
235-under this item (21) applies for all periods beginning May 30,
236-1995, but no claim for credit or refund is allowed on or after
237-January 1, 2008 for such taxes paid during the period
238-beginning May 30, 2000 and ending on January 1, 2008.
239-(22) Computers and communications equipment utilized for
240-any hospital purpose and equipment used in the diagnosis,
241-analysis, or treatment of hospital patients purchased by a
242-lessor who leases the equipment, under a lease of one year or
243-longer executed or in effect at the time the lessor would
244-otherwise be subject to the tax imposed by this Act, to a
245-hospital that has been issued an active tax exemption
246-identification number by the Department under Section 1g of
247-the Retailers' Occupation Tax Act. If the equipment is leased
248-in a manner that does not qualify for this exemption or is used
249-in any other non-exempt manner, the lessor shall be liable for
250-the tax imposed under this Act or the Service Use Tax Act, as
251-the case may be, based on the fair market value of the property
252-at the time the non-qualifying use occurs. No lessor shall
253-collect or attempt to collect an amount (however designated)
254-that purports to reimburse that lessor for the tax imposed by
255-
256-
257-this Act or the Service Use Tax Act, as the case may be, if the
258-tax has not been paid by the lessor. If a lessor improperly
259-collects any such amount from the lessee, the lessee shall
260-have a legal right to claim a refund of that amount from the
261-lessor. If, however, that amount is not refunded to the lessee
262-for any reason, the lessor is liable to pay that amount to the
263-Department.
264-(23) Personal property purchased by a lessor who leases
265-the property, under a lease of one year or longer executed or
266-in effect at the time the lessor would otherwise be subject to
267-the tax imposed by this Act, to a governmental body that has
268-been issued an active sales tax exemption identification
269-number by the Department under Section 1g of the Retailers'
270-Occupation Tax Act. If the property is leased in a manner that
271-does not qualify for this exemption or used in any other
272-non-exempt manner, the lessor shall be liable for the tax
273-imposed under this Act or the Service Use Tax Act, as the case
274-may be, based on the fair market value of the property at the
275-time the non-qualifying use occurs. No lessor shall collect or
276-attempt to collect an amount (however designated) that
277-purports to reimburse that lessor for the tax imposed by this
278-Act or the Service Use Tax Act, as the case may be, if the tax
279-has not been paid by the lessor. If a lessor improperly
280-collects any such amount from the lessee, the lessee shall
281-have a legal right to claim a refund of that amount from the
282-lessor. If, however, that amount is not refunded to the lessee
283-
284-
285-for any reason, the lessor is liable to pay that amount to the
286-Department.
287-(24) Beginning with taxable years ending on or after
288-December 31, 1995 and ending with taxable years ending on or
289-before December 31, 2004, personal property that is donated
290-for disaster relief to be used in a State or federally declared
291-disaster area in Illinois or bordering Illinois by a
292-manufacturer or retailer that is registered in this State to a
293-corporation, society, association, foundation, or institution
294-that has been issued a sales tax exemption identification
295-number by the Department that assists victims of the disaster
296-who reside within the declared disaster area.
297-(25) Beginning with taxable years ending on or after
298-December 31, 1995 and ending with taxable years ending on or
299-before December 31, 2004, personal property that is used in
300-the performance of infrastructure repairs in this State,
301-including, but not limited to, municipal roads and streets,
302-access roads, bridges, sidewalks, waste disposal systems,
303-water and sewer line extensions, water distribution and
304-purification facilities, storm water drainage and retention
305-facilities, and sewage treatment facilities, resulting from a
306-State or federally declared disaster in Illinois or bordering
307-Illinois when such repairs are initiated on facilities located
308-in the declared disaster area within 6 months after the
309-disaster.
310-(26) Beginning July 1, 1999, game or game birds purchased
311-
312-
313-at a "game breeding and hunting preserve area" as that term is
314-used in the Wildlife Code. This paragraph is exempt from the
315-provisions of Section 3-90.
316-(27) A motor vehicle, as that term is defined in Section
317-1-146 of the Illinois Vehicle Code, that is donated to a
318-corporation, limited liability company, society, association,
319-foundation, or institution that is determined by the
320-Department to be organized and operated exclusively for
321-educational purposes. For purposes of this exemption, "a
322-corporation, limited liability company, society, association,
323-foundation, or institution organized and operated exclusively
324-for educational purposes" means all tax-supported public
325-schools, private schools that offer systematic instruction in
326-useful branches of learning by methods common to public
327-schools and that compare favorably in their scope and
328-intensity with the course of study presented in tax-supported
329-schools, and vocational or technical schools or institutes
330-organized and operated exclusively to provide a course of
331-study of not less than 6 weeks duration and designed to prepare
332-individuals to follow a trade or to pursue a manual,
333-technical, mechanical, industrial, business, or commercial
334-occupation.
335-(28) Beginning January 1, 2000, personal property,
336-including food, purchased through fundraising events for the
337-benefit of a public or private elementary or secondary school,
338-a group of those schools, or one or more school districts if
339-
340-
341-the events are sponsored by an entity recognized by the school
342-district that consists primarily of volunteers and includes
343-parents and teachers of the school children. This paragraph
344-does not apply to fundraising events (i) for the benefit of
345-private home instruction or (ii) for which the fundraising
346-entity purchases the personal property sold at the events from
347-another individual or entity that sold the property for the
348-purpose of resale by the fundraising entity and that profits
349-from the sale to the fundraising entity. This paragraph is
350-exempt from the provisions of Section 3-90.
351-(29) Beginning January 1, 2000 and through December 31,
352-2001, new or used automatic vending machines that prepare and
353-serve hot food and beverages, including coffee, soup, and
354-other items, and replacement parts for these machines.
355-Beginning January 1, 2002 and through June 30, 2003, machines
356-and parts for machines used in commercial, coin-operated
357-amusement and vending business if a use or occupation tax is
358-paid on the gross receipts derived from the use of the
359-commercial, coin-operated amusement and vending machines. This
360-paragraph is exempt from the provisions of Section 3-90.
361-(30) Beginning January 1, 2001 and through June 30, 2016,
362-food for human consumption that is to be consumed off the
363-premises where it is sold (other than alcoholic beverages,
364-soft drinks, and food that has been prepared for immediate
365-consumption) and prescription and nonprescription medicines,
366-drugs, medical appliances, and insulin, urine testing
367-
368-
369-materials, syringes, and needles used by diabetics, for human
370-use, when purchased for use by a person receiving medical
371-assistance under Article V of the Illinois Public Aid Code who
372-resides in a licensed long-term care facility, as defined in
373-the Nursing Home Care Act, or in a licensed facility as defined
374-in the ID/DD Community Care Act, the MC/DD Act, or the
375-Specialized Mental Health Rehabilitation Act of 2013.
376-(31) Beginning on August 2, 2001 (the effective date of
377-Public Act 92-227), computers and communications equipment
378-utilized for any hospital purpose and equipment used in the
379-diagnosis, analysis, or treatment of hospital patients
380-purchased by a lessor who leases the equipment, under a lease
381-of one year or longer executed or in effect at the time the
382-lessor would otherwise be subject to the tax imposed by this
383-Act, to a hospital that has been issued an active tax exemption
384-identification number by the Department under Section 1g of
385-the Retailers' Occupation Tax Act. If the equipment is leased
386-in a manner that does not qualify for this exemption or is used
387-in any other nonexempt manner, the lessor shall be liable for
388-the tax imposed under this Act or the Service Use Tax Act, as
389-the case may be, based on the fair market value of the property
390-at the time the nonqualifying use occurs. No lessor shall
391-collect or attempt to collect an amount (however designated)
392-that purports to reimburse that lessor for the tax imposed by
393-this Act or the Service Use Tax Act, as the case may be, if the
394-tax has not been paid by the lessor. If a lessor improperly
395-
396-
397-collects any such amount from the lessee, the lessee shall
398-have a legal right to claim a refund of that amount from the
399-lessor. If, however, that amount is not refunded to the lessee
400-for any reason, the lessor is liable to pay that amount to the
401-Department. This paragraph is exempt from the provisions of
402-Section 3-90.
403-(32) Beginning on August 2, 2001 (the effective date of
404-Public Act 92-227), personal property purchased by a lessor
405-who leases the property, under a lease of one year or longer
406-executed or in effect at the time the lessor would otherwise be
407-subject to the tax imposed by this Act, to a governmental body
408-that has been issued an active sales tax exemption
409-identification number by the Department under Section 1g of
410-the Retailers' Occupation Tax Act. If the property is leased
411-in a manner that does not qualify for this exemption or used in
412-any other nonexempt manner, the lessor shall be liable for the
413-tax imposed under this Act or the Service Use Tax Act, as the
414-case may be, based on the fair market value of the property at
415-the time the nonqualifying use occurs. No lessor shall collect
416-or attempt to collect an amount (however designated) that
417-purports to reimburse that lessor for the tax imposed by this
418-Act or the Service Use Tax Act, as the case may be, if the tax
419-has not been paid by the lessor. If a lessor improperly
420-collects any such amount from the lessee, the lessee shall
421-have a legal right to claim a refund of that amount from the
422-lessor. If, however, that amount is not refunded to the lessee
423-
424-
425-for any reason, the lessor is liable to pay that amount to the
426-Department. This paragraph is exempt from the provisions of
427-Section 3-90.
428-(33) On and after July 1, 2003 and through June 30, 2004,
429-the use in this State of motor vehicles of the second division
430-with a gross vehicle weight in excess of 8,000 pounds and that
431-are subject to the commercial distribution fee imposed under
432-Section 3-815.1 of the Illinois Vehicle Code. Beginning on
433-July 1, 2004 and through June 30, 2005, the use in this State
434-of motor vehicles of the second division: (i) with a gross
435-vehicle weight rating in excess of 8,000 pounds; (ii) that are
436-subject to the commercial distribution fee imposed under
437-Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
438-are primarily used for commercial purposes. Through June 30,
439-2005, this exemption applies to repair and replacement parts
440-added after the initial purchase of such a motor vehicle if
441-that motor vehicle is used in a manner that would qualify for
442-the rolling stock exemption otherwise provided for in this
443-Act. For purposes of this paragraph, the term "used for
444-commercial purposes" means the transportation of persons or
445-property in furtherance of any commercial or industrial
446-enterprise, whether for-hire or not.
447-(34) Beginning January 1, 2008, tangible personal property
448-used in the construction or maintenance of a community water
449-supply, as defined under Section 3.145 of the Environmental
450-Protection Act, that is operated by a not-for-profit
451-
452-
453-corporation that holds a valid water supply permit issued
454-under Title IV of the Environmental Protection Act. This
455-paragraph is exempt from the provisions of Section 3-90.
456-(35) Beginning January 1, 2010 and continuing through
457-December 31, 2029, materials, parts, equipment, components,
458-and furnishings incorporated into or upon an aircraft as part
459-of the modification, refurbishment, completion, replacement,
460-repair, or maintenance of the aircraft. This exemption
461-includes consumable supplies used in the modification,
462-refurbishment, completion, replacement, repair, and
463-maintenance of aircraft. However, until January 1, 2024, this
464-exemption excludes any materials, parts, equipment,
465-components, and consumable supplies used in the modification,
466-replacement, repair, and maintenance of aircraft engines or
467-power plants, whether such engines or power plants are
468-installed or uninstalled upon any such aircraft. "Consumable
469-supplies" include, but are not limited to, adhesive, tape,
470-sandpaper, general purpose lubricants, cleaning solution,
471-latex gloves, and protective films.
472-Beginning January 1, 2010 and continuing through December
473-31, 2023, this exemption applies only to the use of qualifying
474-tangible personal property by persons who modify, refurbish,
475-complete, repair, replace, or maintain aircraft and who (i)
476-hold an Air Agency Certificate and are empowered to operate an
477-approved repair station by the Federal Aviation
478-Administration, (ii) have a Class IV Rating, and (iii) conduct
479-
480-
481-operations in accordance with Part 145 of the Federal Aviation
482-Regulations. From January 1, 2024 through December 31, 2029,
483-this exemption applies only to the use of qualifying tangible
484-personal property by: (A) persons who modify, refurbish,
485-complete, repair, replace, or maintain aircraft and who (i)
486-hold an Air Agency Certificate and are empowered to operate an
487-approved repair station by the Federal Aviation
488-Administration, (ii) have a Class IV Rating, and (iii) conduct
489-operations in accordance with Part 145 of the Federal Aviation
490-Regulations; and (B) persons who engage in the modification,
491-replacement, repair, and maintenance of aircraft engines or
492-power plants without regard to whether or not those persons
493-meet the qualifications of item (A).
494-The exemption does not include aircraft operated by a
495-commercial air carrier providing scheduled passenger air
496-service pursuant to authority issued under Part 121 or Part
497-129 of the Federal Aviation Regulations. The changes made to
498-this paragraph (35) by Public Act 98-534 are declarative of
499-existing law. It is the intent of the General Assembly that the
500-exemption under this paragraph (35) applies continuously from
501-January 1, 2010 through December 31, 2024; however, no claim
502-for credit or refund is allowed for taxes paid as a result of
503-the disallowance of this exemption on or after January 1, 2015
504-and prior to February 5, 2020 (the effective date of Public Act
505-101-629).
506-(36) Tangible personal property purchased by a
507-
508-
509-public-facilities corporation, as described in Section
510-11-65-10 of the Illinois Municipal Code, for purposes of
511-constructing or furnishing a municipal convention hall, but
512-only if the legal title to the municipal convention hall is
513-transferred to the municipality without any further
514-consideration by or on behalf of the municipality at the time
515-of the completion of the municipal convention hall or upon the
516-retirement or redemption of any bonds or other debt
517-instruments issued by the public-facilities corporation in
518-connection with the development of the municipal convention
519-hall. This exemption includes existing public-facilities
520-corporations as provided in Section 11-65-25 of the Illinois
521-Municipal Code. This paragraph is exempt from the provisions
522-of Section 3-90.
523-(37) Beginning January 1, 2017 and through December 31,
524-2026, menstrual pads, tampons, and menstrual cups.
525-(38) Merchandise that is subject to the Rental Purchase
526-Agreement Occupation and Use Tax. The purchaser must certify
527-that the item is purchased to be rented subject to a
528-rental-purchase rental purchase agreement, as defined in the
529-Rental-Purchase Rental Purchase Agreement Act, and provide
530-proof of registration under the Rental Purchase Agreement
531-Occupation and Use Tax Act. This paragraph is exempt from the
532-provisions of Section 3-90.
533-(39) Tangible personal property purchased by a purchaser
534-who is exempt from the tax imposed by this Act by operation of
535-
536-
537-federal law. This paragraph is exempt from the provisions of
538-Section 3-90.
539-(40) Qualified tangible personal property used in the
540-construction or operation of a data center that has been
541-granted a certificate of exemption by the Department of
542-Commerce and Economic Opportunity, whether that tangible
543-personal property is purchased by the owner, operator, or
544-tenant of the data center or by a contractor or subcontractor
545-of the owner, operator, or tenant. Data centers that would
546-have qualified for a certificate of exemption prior to January
547-1, 2020 had Public Act 101-31 been in effect may apply for and
548-obtain an exemption for subsequent purchases of computer
549-equipment or enabling software purchased or leased to upgrade,
550-supplement, or replace computer equipment or enabling software
551-purchased or leased in the original investment that would have
552-qualified.
553-The Department of Commerce and Economic Opportunity shall
554-grant a certificate of exemption under this item (40) to
555-qualified data centers as defined by Section 605-1025 of the
556-Department of Commerce and Economic Opportunity Law of the
557-Civil Administrative Code of Illinois.
558-For the purposes of this item (40):
559-"Data center" means a building or a series of
560-buildings rehabilitated or constructed to house working
561-servers in one physical location or multiple sites within
562-the State of Illinois.
563-
564-
565-"Qualified tangible personal property" means:
566-electrical systems and equipment; climate control and
567-chilling equipment and systems; mechanical systems and
568-equipment; monitoring and secure systems; emergency
569-generators; hardware; computers; servers; data storage
570-devices; network connectivity equipment; racks; cabinets;
571-telecommunications cabling infrastructure; raised floor
572-systems; peripheral components or systems; software;
573-mechanical, electrical, or plumbing systems; battery
574-systems; cooling systems and towers; temperature control
575-systems; other cabling; and other data center
576-infrastructure equipment and systems necessary to operate
577-qualified tangible personal property, including fixtures;
578-and component parts of any of the foregoing, including
579-installation, maintenance, repair, refurbishment, and
580-replacement of qualified tangible personal property to
581-generate, transform, transmit, distribute, or manage
582-electricity necessary to operate qualified tangible
583-personal property; and all other tangible personal
584-property that is essential to the operations of a computer
585-data center. The term "qualified tangible personal
586-property" also includes building materials physically
587-incorporated into in to the qualifying data center. To
588-document the exemption allowed under this Section, the
589-retailer must obtain from the purchaser a copy of the
590-certificate of eligibility issued by the Department of
591-
592-
593-Commerce and Economic Opportunity.
594-This item (40) is exempt from the provisions of Section
595-3-90.
596-(41) Beginning July 1, 2022, breast pumps, breast pump
597-collection and storage supplies, and breast pump kits. This
598-item (41) is exempt from the provisions of Section 3-90. As
599-used in this item (41):
600-"Breast pump" means an electrically controlled or
601-manually controlled pump device designed or marketed to be
602-used to express milk from a human breast during lactation,
603-including the pump device and any battery, AC adapter, or
604-other power supply unit that is used to power the pump
605-device and is packaged and sold with the pump device at the
606-time of sale.
607-"Breast pump collection and storage supplies" means
608-items of tangible personal property designed or marketed
609-to be used in conjunction with a breast pump to collect
610-milk expressed from a human breast and to store collected
611-milk until it is ready for consumption.
612-"Breast pump collection and storage supplies"
613-includes, but is not limited to: breast shields and breast
614-shield connectors; breast pump tubes and tubing adapters;
615-breast pump valves and membranes; backflow protectors and
616-backflow protector adaptors; bottles and bottle caps
617-specific to the operation of the breast pump; and breast
618-milk storage bags.
619-
620-
621-"Breast pump collection and storage supplies" does not
622-include: (1) bottles and bottle caps not specific to the
623-operation of the breast pump; (2) breast pump travel bags
624-and other similar carrying accessories, including ice
625-packs, labels, and other similar products; (3) breast pump
626-cleaning supplies; (4) nursing bras, bra pads, breast
627-shells, and other similar products; and (5) creams,
628-ointments, and other similar products that relieve
629-breastfeeding-related symptoms or conditions of the
630-breasts or nipples, unless sold as part of a breast pump
631-kit that is pre-packaged by the breast pump manufacturer
632-or distributor.
633-"Breast pump kit" means a kit that: (1) contains no
634-more than a breast pump, breast pump collection and
635-storage supplies, a rechargeable battery for operating the
636-breast pump, a breastmilk cooler, bottle stands, ice
637-packs, and a breast pump carrying case; and (2) is
638-pre-packaged as a breast pump kit by the breast pump
639-manufacturer or distributor.
640-(42) Tangible personal property sold by or on behalf of
641-the State Treasurer pursuant to the Revised Uniform Unclaimed
642-Property Act. This item (42) is exempt from the provisions of
643-Section 3-90.
644-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
645-Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
646-eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
647-
648-
649-Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
650-eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-12-23.)
651-(Text of Section after amendment by P.A. 103-384)
652-Sec. 3-5. Exemptions. Use of the following tangible
653-personal property is exempt from the tax imposed by this Act:
654-(1) Personal property purchased from a corporation,
655-society, association, foundation, institution, or
656-organization, other than a limited liability company, that is
657-organized and operated as a not-for-profit service enterprise
658-for the benefit of persons 65 years of age or older if the
659-personal property was not purchased by the enterprise for the
660-purpose of resale by the enterprise.
661-(2) Personal property purchased by a not-for-profit
662-Illinois county fair association for use in conducting,
663-operating, or promoting the county fair.
664-(3) Personal property purchased by a not-for-profit arts
665-or cultural organization that establishes, by proof required
666-by the Department by rule, that it has received an exemption
667-under Section 501(c)(3) of the Internal Revenue Code and that
668-is organized and operated primarily for the presentation or
669-support of arts or cultural programming, activities, or
670-services. These organizations include, but are not limited to,
671-music and dramatic arts organizations such as symphony
672-orchestras and theatrical groups, arts and cultural service
673-organizations, local arts councils, visual arts organizations,
674-
675-
676-and media arts organizations. On and after July 1, 2001 (the
677-effective date of Public Act 92-35), however, an entity
678-otherwise eligible for this exemption shall not make tax-free
679-purchases unless it has an active identification number issued
680-by the Department.
681-(4) Except as otherwise provided in this Act, personal
682-property purchased by a governmental body, by a corporation,
683-society, association, foundation, or institution organized and
684-operated exclusively for charitable, religious, or educational
685-purposes, or by a not-for-profit corporation, society,
686-association, foundation, institution, or organization that has
687-no compensated officers or employees and that is organized and
688-operated primarily for the recreation of persons 55 years of
689-age or older. A limited liability company may qualify for the
690-exemption under this paragraph only if the limited liability
691-company is organized and operated exclusively for educational
692-purposes. On and after July 1, 1987, however, no entity
693-otherwise eligible for this exemption shall make tax-free
694-purchases unless it has an active exemption identification
695-number issued by the Department.
696-(5) Until July 1, 2003, a passenger car that is a
697-replacement vehicle to the extent that the purchase price of
698-the car is subject to the Replacement Vehicle Tax.
699-(6) Until July 1, 2003 and beginning again on September 1,
700-2004 through August 30, 2014, graphic arts machinery and
701-equipment, including repair and replacement parts, both new
702-
703-
704-and used, and including that manufactured on special order,
705-certified by the purchaser to be used primarily for graphic
706-arts production, and including machinery and equipment
707-purchased for lease. Equipment includes chemicals or chemicals
708-acting as catalysts but only if the chemicals or chemicals
709-acting as catalysts effect a direct and immediate change upon
710-a graphic arts product. Beginning on July 1, 2017, graphic
711-arts machinery and equipment is included in the manufacturing
712-and assembling machinery and equipment exemption under
713-paragraph (18).
714-(7) Farm chemicals.
715-(8) Legal tender, currency, medallions, or gold or silver
716-coinage issued by the State of Illinois, the government of the
717-United States of America, or the government of any foreign
718-country, and bullion.
719-(9) Personal property purchased from a teacher-sponsored
720-student organization affiliated with an elementary or
721-secondary school located in Illinois.
722-(10) A motor vehicle that is used for automobile renting,
723-as defined in the Automobile Renting Occupation and Use Tax
724-Act.
725-(11) Farm machinery and equipment, both new and used,
726-including that manufactured on special order, certified by the
727-purchaser to be used primarily for production agriculture or
728-State or federal agricultural programs, including individual
729-replacement parts for the machinery and equipment, including
730-
731-
732-machinery and equipment purchased for lease, and including
733-implements of husbandry defined in Section 1-130 of the
734-Illinois Vehicle Code, farm machinery and agricultural
735-chemical and fertilizer spreaders, and nurse wagons required
736-to be registered under Section 3-809 of the Illinois Vehicle
737-Code, but excluding other motor vehicles required to be
738-registered under the Illinois Vehicle Code. Horticultural
739-polyhouses or hoop houses used for propagating, growing, or
740-overwintering plants shall be considered farm machinery and
741-equipment under this item (11). Agricultural chemical tender
742-tanks and dry boxes shall include units sold separately from a
743-motor vehicle required to be licensed and units sold mounted
744-on a motor vehicle required to be licensed if the selling price
745-of the tender is separately stated.
746-Farm machinery and equipment shall include precision
747-farming equipment that is installed or purchased to be
748-installed on farm machinery and equipment, including, but not
749-limited to, tractors, harvesters, sprayers, planters, seeders,
750-or spreaders. Precision farming equipment includes, but is not
751-limited to, soil testing sensors, computers, monitors,
752-software, global positioning and mapping systems, and other
753-such equipment.
754-Farm machinery and equipment also includes computers,
755-sensors, software, and related equipment used primarily in the
756-computer-assisted operation of production agriculture
757-facilities, equipment, and activities such as, but not limited
758-
759-
760-to, the collection, monitoring, and correlation of animal and
761-crop data for the purpose of formulating animal diets and
762-agricultural chemicals.
763-Beginning on January 1, 2024, farm machinery and equipment
764-also includes electrical power generation equipment used
765-primarily for production agriculture.
766-This item (11) is exempt from the provisions of Section
767-3-90.
768-(12) Until June 30, 2013, fuel and petroleum products sold
769-to or used by an air common carrier, certified by the carrier
770-to be used for consumption, shipment, or storage in the
771-conduct of its business as an air common carrier, for a flight
772-destined for or returning from a location or locations outside
773-the United States without regard to previous or subsequent
774-domestic stopovers.
775-Beginning July 1, 2013, fuel and petroleum products sold
776-to or used by an air carrier, certified by the carrier to be
777-used for consumption, shipment, or storage in the conduct of
778-its business as an air common carrier, for a flight that (i) is
779-engaged in foreign trade or is engaged in trade between the
780-United States and any of its possessions and (ii) transports
781-at least one individual or package for hire from the city of
782-origination to the city of final destination on the same
783-aircraft, without regard to a change in the flight number of
784-that aircraft.
785-(13) Proceeds of mandatory service charges separately
786-
787-
788-stated on customers' bills for the purchase and consumption of
789-food and beverages purchased at retail from a retailer, to the
790-extent that the proceeds of the service charge are in fact
791-turned over as tips or as a substitute for tips to the
792-employees who participate directly in preparing, serving,
793-hosting or cleaning up the food or beverage function with
794-respect to which the service charge is imposed.
795-(14) Until July 1, 2003, oil field exploration, drilling,
796-and production equipment, including (i) rigs and parts of
797-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
798-pipe and tubular goods, including casing and drill strings,
799-(iii) pumps and pump-jack units, (iv) storage tanks and flow
800-lines, (v) any individual replacement part for oil field
801-exploration, drilling, and production equipment, and (vi)
802-machinery and equipment purchased for lease; but excluding
803-motor vehicles required to be registered under the Illinois
804-Vehicle Code.
805-(15) Photoprocessing machinery and equipment, including
806-repair and replacement parts, both new and used, including
807-that manufactured on special order, certified by the purchaser
808-to be used primarily for photoprocessing, and including
809-photoprocessing machinery and equipment purchased for lease.
810-(16) Until July 1, 2028, coal and aggregate exploration,
811-mining, off-highway hauling, processing, maintenance, and
812-reclamation equipment, including replacement parts and
813-equipment, and including equipment purchased for lease, but
814-
815-
816-excluding motor vehicles required to be registered under the
817-Illinois Vehicle Code. The changes made to this Section by
818-Public Act 97-767 apply on and after July 1, 2003, but no claim
819-for credit or refund is allowed on or after August 16, 2013
820-(the effective date of Public Act 98-456) for such taxes paid
821-during the period beginning July 1, 2003 and ending on August
822-16, 2013 (the effective date of Public Act 98-456).
823-(17) Until July 1, 2003, distillation machinery and
824-equipment, sold as a unit or kit, assembled or installed by the
825-retailer, certified by the user to be used only for the
826-production of ethyl alcohol that will be used for consumption
827-as motor fuel or as a component of motor fuel for the personal
828-use of the user, and not subject to sale or resale.
829-(18) Manufacturing and assembling machinery and equipment
830-used primarily in the process of manufacturing or assembling
831-tangible personal property for wholesale or retail sale or
832-lease, whether that sale or lease is made directly by the
833-manufacturer or by some other person, whether the materials
834-used in the process are owned by the manufacturer or some other
835-person, or whether that sale or lease is made apart from or as
836-an incident to the seller's engaging in the service occupation
837-of producing machines, tools, dies, jigs, patterns, gauges, or
838-other similar items of no commercial value on special order
839-for a particular purchaser. The exemption provided by this
840-paragraph (18) includes production related tangible personal
841-property, as defined in Section 3-50, purchased on or after
842-
843-
844-July 1, 2019. The exemption provided by this paragraph (18)
845-does not include machinery and equipment used in (i) the
846-generation of electricity for wholesale or retail sale; (ii)
847-the generation or treatment of natural or artificial gas for
848-wholesale or retail sale that is delivered to customers
849-through pipes, pipelines, or mains; or (iii) the treatment of
850-water for wholesale or retail sale that is delivered to
851-customers through pipes, pipelines, or mains. The provisions
852-of Public Act 98-583 are declaratory of existing law as to the
853-meaning and scope of this exemption. Beginning on July 1,
854-2017, the exemption provided by this paragraph (18) includes,
855-but is not limited to, graphic arts machinery and equipment,
856-as defined in paragraph (6) of this Section.
857-(19) Personal property delivered to a purchaser or
858-purchaser's donee inside Illinois when the purchase order for
859-that personal property was received by a florist located
860-outside Illinois who has a florist located inside Illinois
861-deliver the personal property.
862-(20) Semen used for artificial insemination of livestock
863-for direct agricultural production.
864-(21) Horses, or interests in horses, registered with and
865-meeting the requirements of any of the Arabian Horse Club
866-Registry of America, Appaloosa Horse Club, American Quarter
867-Horse Association, United States Trotting Association, or
868-Jockey Club, as appropriate, used for purposes of breeding or
869-racing for prizes. This item (21) is exempt from the
870-
871-
872-provisions of Section 3-90, and the exemption provided for
873-under this item (21) applies for all periods beginning May 30,
874-1995, but no claim for credit or refund is allowed on or after
875-January 1, 2008 for such taxes paid during the period
876-beginning May 30, 2000 and ending on January 1, 2008.
877-(22) Computers and communications equipment utilized for
878-any hospital purpose and equipment used in the diagnosis,
879-analysis, or treatment of hospital patients purchased by a
880-lessor who leases the equipment, under a lease of one year or
881-longer executed or in effect at the time the lessor would
882-otherwise be subject to the tax imposed by this Act, to a
883-hospital that has been issued an active tax exemption
884-identification number by the Department under Section 1g of
885-the Retailers' Occupation Tax Act. If the equipment is leased
886-in a manner that does not qualify for this exemption or is used
887-in any other non-exempt manner, the lessor shall be liable for
888-the tax imposed under this Act or the Service Use Tax Act, as
889-the case may be, based on the fair market value of the property
890-at the time the non-qualifying use occurs. No lessor shall
891-collect or attempt to collect an amount (however designated)
892-that purports to reimburse that lessor for the tax imposed by
893-this Act or the Service Use Tax Act, as the case may be, if the
894-tax has not been paid by the lessor. If a lessor improperly
895-collects any such amount from the lessee, the lessee shall
896-have a legal right to claim a refund of that amount from the
897-lessor. If, however, that amount is not refunded to the lessee
898-
899-
900-for any reason, the lessor is liable to pay that amount to the
901-Department.
902-(23) Personal property purchased by a lessor who leases
903-the property, under a lease of one year or longer executed or
904-in effect at the time the lessor would otherwise be subject to
905-the tax imposed by this Act, to a governmental body that has
906-been issued an active sales tax exemption identification
907-number by the Department under Section 1g of the Retailers'
908-Occupation Tax Act. If the property is leased in a manner that
909-does not qualify for this exemption or used in any other
910-non-exempt manner, the lessor shall be liable for the tax
911-imposed under this Act or the Service Use Tax Act, as the case
912-may be, based on the fair market value of the property at the
913-time the non-qualifying use occurs. No lessor shall collect or
914-attempt to collect an amount (however designated) that
915-purports to reimburse that lessor for the tax imposed by this
916-Act or the Service Use Tax Act, as the case may be, if the tax
917-has not been paid by the lessor. If a lessor improperly
918-collects any such amount from the lessee, the lessee shall
919-have a legal right to claim a refund of that amount from the
920-lessor. If, however, that amount is not refunded to the lessee
921-for any reason, the lessor is liable to pay that amount to the
922-Department.
923-(24) Beginning with taxable years ending on or after
924-December 31, 1995 and ending with taxable years ending on or
925-before December 31, 2004, personal property that is donated
926-
927-
928-for disaster relief to be used in a State or federally declared
929-disaster area in Illinois or bordering Illinois by a
930-manufacturer or retailer that is registered in this State to a
931-corporation, society, association, foundation, or institution
932-that has been issued a sales tax exemption identification
933-number by the Department that assists victims of the disaster
934-who reside within the declared disaster area.
935-(25) Beginning with taxable years ending on or after
936-December 31, 1995 and ending with taxable years ending on or
937-before December 31, 2004, personal property that is used in
938-the performance of infrastructure repairs in this State,
939-including, but not limited to, municipal roads and streets,
940-access roads, bridges, sidewalks, waste disposal systems,
941-water and sewer line extensions, water distribution and
942-purification facilities, storm water drainage and retention
943-facilities, and sewage treatment facilities, resulting from a
944-State or federally declared disaster in Illinois or bordering
945-Illinois when such repairs are initiated on facilities located
946-in the declared disaster area within 6 months after the
947-disaster.
948-(26) Beginning July 1, 1999, game or game birds purchased
949-at a "game breeding and hunting preserve area" as that term is
950-used in the Wildlife Code. This paragraph is exempt from the
951-provisions of Section 3-90.
952-(27) A motor vehicle, as that term is defined in Section
953-1-146 of the Illinois Vehicle Code, that is donated to a
954-
955-
956-corporation, limited liability company, society, association,
957-foundation, or institution that is determined by the
958-Department to be organized and operated exclusively for
959-educational purposes. For purposes of this exemption, "a
960-corporation, limited liability company, society, association,
961-foundation, or institution organized and operated exclusively
962-for educational purposes" means all tax-supported public
963-schools, private schools that offer systematic instruction in
964-useful branches of learning by methods common to public
965-schools and that compare favorably in their scope and
966-intensity with the course of study presented in tax-supported
967-schools, and vocational or technical schools or institutes
968-organized and operated exclusively to provide a course of
969-study of not less than 6 weeks duration and designed to prepare
970-individuals to follow a trade or to pursue a manual,
971-technical, mechanical, industrial, business, or commercial
972-occupation.
973-(28) Beginning January 1, 2000, personal property,
974-including food, purchased through fundraising events for the
975-benefit of a public or private elementary or secondary school,
976-a group of those schools, or one or more school districts if
977-the events are sponsored by an entity recognized by the school
978-district that consists primarily of volunteers and includes
979-parents and teachers of the school children. This paragraph
980-does not apply to fundraising events (i) for the benefit of
981-private home instruction or (ii) for which the fundraising
982-
983-
984-entity purchases the personal property sold at the events from
985-another individual or entity that sold the property for the
986-purpose of resale by the fundraising entity and that profits
987-from the sale to the fundraising entity. This paragraph is
988-exempt from the provisions of Section 3-90.
989-(29) Beginning January 1, 2000 and through December 31,
990-2001, new or used automatic vending machines that prepare and
991-serve hot food and beverages, including coffee, soup, and
992-other items, and replacement parts for these machines.
993-Beginning January 1, 2002 and through June 30, 2003, machines
994-and parts for machines used in commercial, coin-operated
995-amusement and vending business if a use or occupation tax is
996-paid on the gross receipts derived from the use of the
997-commercial, coin-operated amusement and vending machines. This
998-paragraph is exempt from the provisions of Section 3-90.
999-(30) Beginning January 1, 2001 and through June 30, 2016,
1000-food for human consumption that is to be consumed off the
1001-premises where it is sold (other than alcoholic beverages,
1002-soft drinks, and food that has been prepared for immediate
1003-consumption) and prescription and nonprescription medicines,
1004-drugs, medical appliances, and insulin, urine testing
1005-materials, syringes, and needles used by diabetics, for human
1006-use, when purchased for use by a person receiving medical
1007-assistance under Article V of the Illinois Public Aid Code who
1008-resides in a licensed long-term care facility, as defined in
1009-the Nursing Home Care Act, or in a licensed facility as defined
1010-
1011-
1012-in the ID/DD Community Care Act, the MC/DD Act, or the
1013-Specialized Mental Health Rehabilitation Act of 2013.
1014-(31) Beginning on August 2, 2001 (the effective date of
1015-Public Act 92-227), computers and communications equipment
1016-utilized for any hospital purpose and equipment used in the
1017-diagnosis, analysis, or treatment of hospital patients
1018-purchased by a lessor who leases the equipment, under a lease
1019-of one year or longer executed or in effect at the time the
1020-lessor would otherwise be subject to the tax imposed by this
1021-Act, to a hospital that has been issued an active tax exemption
1022-identification number by the Department under Section 1g of
1023-the Retailers' Occupation Tax Act. If the equipment is leased
1024-in a manner that does not qualify for this exemption or is used
1025-in any other nonexempt manner, the lessor shall be liable for
1026-the tax imposed under this Act or the Service Use Tax Act, as
1027-the case may be, based on the fair market value of the property
1028-at the time the nonqualifying use occurs. No lessor shall
1029-collect or attempt to collect an amount (however designated)
1030-that purports to reimburse that lessor for the tax imposed by
1031-this Act or the Service Use Tax Act, as the case may be, if the
1032-tax has not been paid by the lessor. If a lessor improperly
1033-collects any such amount from the lessee, the lessee shall
1034-have a legal right to claim a refund of that amount from the
1035-lessor. If, however, that amount is not refunded to the lessee
1036-for any reason, the lessor is liable to pay that amount to the
1037-Department. This paragraph is exempt from the provisions of
1038-
1039-
1040-Section 3-90.
1041-(32) Beginning on August 2, 2001 (the effective date of
1042-Public Act 92-227), personal property purchased by a lessor
1043-who leases the property, under a lease of one year or longer
1044-executed or in effect at the time the lessor would otherwise be
1045-subject to the tax imposed by this Act, to a governmental body
1046-that has been issued an active sales tax exemption
1047-identification number by the Department under Section 1g of
1048-the Retailers' Occupation Tax Act. If the property is leased
1049-in a manner that does not qualify for this exemption or used in
1050-any other nonexempt manner, the lessor shall be liable for the
1051-tax imposed under this Act or the Service Use Tax Act, as the
1052-case may be, based on the fair market value of the property at
1053-the time the nonqualifying use occurs. No lessor shall collect
1054-or attempt to collect an amount (however designated) that
1055-purports to reimburse that lessor for the tax imposed by this
1056-Act or the Service Use Tax Act, as the case may be, if the tax
1057-has not been paid by the lessor. If a lessor improperly
1058-collects any such amount from the lessee, the lessee shall
1059-have a legal right to claim a refund of that amount from the
1060-lessor. If, however, that amount is not refunded to the lessee
1061-for any reason, the lessor is liable to pay that amount to the
1062-Department. This paragraph is exempt from the provisions of
1063-Section 3-90.
1064-(33) On and after July 1, 2003 and through June 30, 2004,
1065-the use in this State of motor vehicles of the second division
1066-
1067-
1068-with a gross vehicle weight in excess of 8,000 pounds and that
1069-are subject to the commercial distribution fee imposed under
1070-Section 3-815.1 of the Illinois Vehicle Code. Beginning on
1071-July 1, 2004 and through June 30, 2005, the use in this State
1072-of motor vehicles of the second division: (i) with a gross
1073-vehicle weight rating in excess of 8,000 pounds; (ii) that are
1074-subject to the commercial distribution fee imposed under
1075-Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
1076-are primarily used for commercial purposes. Through June 30,
1077-2005, this exemption applies to repair and replacement parts
1078-added after the initial purchase of such a motor vehicle if
1079-that motor vehicle is used in a manner that would qualify for
1080-the rolling stock exemption otherwise provided for in this
1081-Act. For purposes of this paragraph, the term "used for
1082-commercial purposes" means the transportation of persons or
1083-property in furtherance of any commercial or industrial
1084-enterprise, whether for-hire or not.
1085-(34) Beginning January 1, 2008, tangible personal property
1086-used in the construction or maintenance of a community water
1087-supply, as defined under Section 3.145 of the Environmental
1088-Protection Act, that is operated by a not-for-profit
1089-corporation that holds a valid water supply permit issued
1090-under Title IV of the Environmental Protection Act. This
1091-paragraph is exempt from the provisions of Section 3-90.
1092-(35) Beginning January 1, 2010 and continuing through
1093-December 31, 2029, materials, parts, equipment, components,
1094-
1095-
1096-and furnishings incorporated into or upon an aircraft as part
1097-of the modification, refurbishment, completion, replacement,
1098-repair, or maintenance of the aircraft. This exemption
1099-includes consumable supplies used in the modification,
1100-refurbishment, completion, replacement, repair, and
1101-maintenance of aircraft. However, until January 1, 2024, this
1102-exemption excludes any materials, parts, equipment,
1103-components, and consumable supplies used in the modification,
1104-replacement, repair, and maintenance of aircraft engines or
1105-power plants, whether such engines or power plants are
1106-installed or uninstalled upon any such aircraft. "Consumable
1107-supplies" include, but are not limited to, adhesive, tape,
1108-sandpaper, general purpose lubricants, cleaning solution,
1109-latex gloves, and protective films.
1110-Beginning January 1, 2010 and continuing through December
1111-31, 2023, this exemption applies only to the use of qualifying
1112-tangible personal property by persons who modify, refurbish,
1113-complete, repair, replace, or maintain aircraft and who (i)
1114-hold an Air Agency Certificate and are empowered to operate an
1115-approved repair station by the Federal Aviation
1116-Administration, (ii) have a Class IV Rating, and (iii) conduct
1117-operations in accordance with Part 145 of the Federal Aviation
1118-Regulations. From January 1, 2024 through December 31, 2029,
1119-this exemption applies only to the use of qualifying tangible
1120-personal property by: (A) persons who modify, refurbish,
1121-complete, repair, replace, or maintain aircraft and who (i)
1122-
1123-
1124-hold an Air Agency Certificate and are empowered to operate an
1125-approved repair station by the Federal Aviation
1126-Administration, (ii) have a Class IV Rating, and (iii) conduct
1127-operations in accordance with Part 145 of the Federal Aviation
1128-Regulations; and (B) persons who engage in the modification,
1129-replacement, repair, and maintenance of aircraft engines or
1130-power plants without regard to whether or not those persons
1131-meet the qualifications of item (A).
1132-The exemption does not include aircraft operated by a
1133-commercial air carrier providing scheduled passenger air
1134-service pursuant to authority issued under Part 121 or Part
1135-129 of the Federal Aviation Regulations. The changes made to
1136-this paragraph (35) by Public Act 98-534 are declarative of
1137-existing law. It is the intent of the General Assembly that the
1138-exemption under this paragraph (35) applies continuously from
1139-January 1, 2010 through December 31, 2024; however, no claim
1140-for credit or refund is allowed for taxes paid as a result of
1141-the disallowance of this exemption on or after January 1, 2015
1142-and prior to February 5, 2020 (the effective date of Public Act
1143-101-629).
1144-(36) Tangible personal property purchased by a
1145-public-facilities corporation, as described in Section
1146-11-65-10 of the Illinois Municipal Code, for purposes of
1147-constructing or furnishing a municipal convention hall, but
1148-only if the legal title to the municipal convention hall is
1149-transferred to the municipality without any further
1150-
1151-
1152-consideration by or on behalf of the municipality at the time
1153-of the completion of the municipal convention hall or upon the
1154-retirement or redemption of any bonds or other debt
1155-instruments issued by the public-facilities corporation in
1156-connection with the development of the municipal convention
1157-hall. This exemption includes existing public-facilities
1158-corporations as provided in Section 11-65-25 of the Illinois
1159-Municipal Code. This paragraph is exempt from the provisions
1160-of Section 3-90.
1161-(37) Beginning January 1, 2017 and through December 31,
1162-2026, menstrual pads, tampons, and menstrual cups.
1163-(38) Merchandise that is subject to the Rental Purchase
1164-Agreement Occupation and Use Tax. The purchaser must certify
1165-that the item is purchased to be rented subject to a
1166-rental-purchase rental purchase agreement, as defined in the
1167-Rental-Purchase Rental Purchase Agreement Act, and provide
1168-proof of registration under the Rental Purchase Agreement
1169-Occupation and Use Tax Act. This paragraph is exempt from the
1170-provisions of Section 3-90.
1171-(39) Tangible personal property purchased by a purchaser
1172-who is exempt from the tax imposed by this Act by operation of
1173-federal law. This paragraph is exempt from the provisions of
1174-Section 3-90.
1175-(40) Qualified tangible personal property used in the
1176-construction or operation of a data center that has been
1177-granted a certificate of exemption by the Department of
1178-
1179-
1180-Commerce and Economic Opportunity, whether that tangible
1181-personal property is purchased by the owner, operator, or
1182-tenant of the data center or by a contractor or subcontractor
1183-of the owner, operator, or tenant. Data centers that would
1184-have qualified for a certificate of exemption prior to January
1185-1, 2020 had Public Act 101-31 been in effect may apply for and
1186-obtain an exemption for subsequent purchases of computer
1187-equipment or enabling software purchased or leased to upgrade,
1188-supplement, or replace computer equipment or enabling software
1189-purchased or leased in the original investment that would have
1190-qualified.
1191-The Department of Commerce and Economic Opportunity shall
1192-grant a certificate of exemption under this item (40) to
1193-qualified data centers as defined by Section 605-1025 of the
1194-Department of Commerce and Economic Opportunity Law of the
1195-Civil Administrative Code of Illinois.
1196-For the purposes of this item (40):
1197-"Data center" means a building or a series of
1198-buildings rehabilitated or constructed to house working
1199-servers in one physical location or multiple sites within
1200-the State of Illinois.
1201-"Qualified tangible personal property" means:
1202-electrical systems and equipment; climate control and
1203-chilling equipment and systems; mechanical systems and
1204-equipment; monitoring and secure systems; emergency
1205-generators; hardware; computers; servers; data storage
1206-
1207-
1208-devices; network connectivity equipment; racks; cabinets;
1209-telecommunications cabling infrastructure; raised floor
1210-systems; peripheral components or systems; software;
1211-mechanical, electrical, or plumbing systems; battery
1212-systems; cooling systems and towers; temperature control
1213-systems; other cabling; and other data center
1214-infrastructure equipment and systems necessary to operate
1215-qualified tangible personal property, including fixtures;
1216-and component parts of any of the foregoing, including
1217-installation, maintenance, repair, refurbishment, and
1218-replacement of qualified tangible personal property to
1219-generate, transform, transmit, distribute, or manage
1220-electricity necessary to operate qualified tangible
1221-personal property; and all other tangible personal
1222-property that is essential to the operations of a computer
1223-data center. The term "qualified tangible personal
1224-property" also includes building materials physically
1225-incorporated into in to the qualifying data center. To
1226-document the exemption allowed under this Section, the
1227-retailer must obtain from the purchaser a copy of the
1228-certificate of eligibility issued by the Department of
1229-Commerce and Economic Opportunity.
1230-This item (40) is exempt from the provisions of Section
1231-3-90.
1232-(41) Beginning July 1, 2022, breast pumps, breast pump
1233-collection and storage supplies, and breast pump kits. This
1234-
1235-
1236-item (41) is exempt from the provisions of Section 3-90. As
1237-used in this item (41):
1238-"Breast pump" means an electrically controlled or
1239-manually controlled pump device designed or marketed to be
1240-used to express milk from a human breast during lactation,
1241-including the pump device and any battery, AC adapter, or
1242-other power supply unit that is used to power the pump
1243-device and is packaged and sold with the pump device at the
1244-time of sale.
1245-"Breast pump collection and storage supplies" means
1246-items of tangible personal property designed or marketed
1247-to be used in conjunction with a breast pump to collect
1248-milk expressed from a human breast and to store collected
1249-milk until it is ready for consumption.
1250-"Breast pump collection and storage supplies"
1251-includes, but is not limited to: breast shields and breast
1252-shield connectors; breast pump tubes and tubing adapters;
1253-breast pump valves and membranes; backflow protectors and
1254-backflow protector adaptors; bottles and bottle caps
1255-specific to the operation of the breast pump; and breast
1256-milk storage bags.
1257-"Breast pump collection and storage supplies" does not
1258-include: (1) bottles and bottle caps not specific to the
1259-operation of the breast pump; (2) breast pump travel bags
1260-and other similar carrying accessories, including ice
1261-packs, labels, and other similar products; (3) breast pump
1262-
1263-
1264-cleaning supplies; (4) nursing bras, bra pads, breast
1265-shells, and other similar products; and (5) creams,
1266-ointments, and other similar products that relieve
1267-breastfeeding-related symptoms or conditions of the
1268-breasts or nipples, unless sold as part of a breast pump
1269-kit that is pre-packaged by the breast pump manufacturer
1270-or distributor.
1271-"Breast pump kit" means a kit that: (1) contains no
1272-more than a breast pump, breast pump collection and
1273-storage supplies, a rechargeable battery for operating the
1274-breast pump, a breastmilk cooler, bottle stands, ice
1275-packs, and a breast pump carrying case; and (2) is
1276-pre-packaged as a breast pump kit by the breast pump
1277-manufacturer or distributor.
1278-(42) Tangible personal property sold by or on behalf of
1279-the State Treasurer pursuant to the Revised Uniform Unclaimed
1280-Property Act. This item (42) is exempt from the provisions of
1281-Section 3-90.
1282-(43) Beginning on January 1, 2024, tangible personal
1283-property purchased by an active duty member of the armed
1284-forces of the United States who presents valid military
1285-identification and purchases the property using a form of
1286-payment where the federal government is the payor. The member
1287-of the armed forces must complete, at the point of sale, a form
1288-prescribed by the Department of Revenue documenting that the
1289-transaction is eligible for the exemption under this
1290-
1291-
1292-paragraph. Retailers must keep the form as documentation of
1293-the exemption in their records for a period of not less than 6
1294-years. "Armed forces of the United States" means the United
1295-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1296-This paragraph is exempt from the provisions of Section 3-90.
1297-(44) Beginning July 1, 2024, home-delivered meals provided
1298-to Medicare or Medicaid recipients when payment is made by an
1299-intermediary, such as a Medicare Administrative Contractor, a
1300-Managed Care Organization, or a Medicare Advantage
1301-Organization, pursuant to a government contract. This item
1302-(44) is exempt from the provisions of Section 3-90.
1303-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1304-Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
1305-eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1306-Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
1307-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1308-revised 9-12-23.)
1309-Section 10. The Service Use Tax Act is amended by changing
1310-Section 3-5 as follows:
1311-(35 ILCS 110/3-5)
1312-(Text of Section before amendment by P.A. 103-384)
1313-Sec. 3-5. Exemptions. Use of the following tangible
1314-personal property is exempt from the tax imposed by this Act:
1315-(1) Personal property purchased from a corporation,
1316-
1317-
1318-society, association, foundation, institution, or
1319-organization, other than a limited liability company, that is
1320-organized and operated as a not-for-profit service enterprise
1321-for the benefit of persons 65 years of age or older if the
1322-personal property was not purchased by the enterprise for the
1323-purpose of resale by the enterprise.
1324-(2) Personal property purchased by a non-profit Illinois
1325-county fair association for use in conducting, operating, or
1326-promoting the county fair.
1327-(3) Personal property purchased by a not-for-profit arts
1328-or cultural organization that establishes, by proof required
1329-by the Department by rule, that it has received an exemption
1330-under Section 501(c)(3) of the Internal Revenue Code and that
1331-is organized and operated primarily for the presentation or
1332-support of arts or cultural programming, activities, or
1333-services. These organizations include, but are not limited to,
1334-music and dramatic arts organizations such as symphony
1335-orchestras and theatrical groups, arts and cultural service
1336-organizations, local arts councils, visual arts organizations,
1337-and media arts organizations. On and after July 1, 2001 (the
1338-effective date of Public Act 92-35), however, an entity
1339-otherwise eligible for this exemption shall not make tax-free
1340-purchases unless it has an active identification number issued
1341-by the Department.
1342-(4) Legal tender, currency, medallions, or gold or silver
1343-coinage issued by the State of Illinois, the government of the
1344-
1345-
1346-United States of America, or the government of any foreign
1347-country, and bullion.
1348-(5) Until July 1, 2003 and beginning again on September 1,
1349-2004 through August 30, 2014, graphic arts machinery and
1350-equipment, including repair and replacement parts, both new
1351-and used, and including that manufactured on special order or
1352-purchased for lease, certified by the purchaser to be used
1353-primarily for graphic arts production. Equipment includes
1354-chemicals or chemicals acting as catalysts but only if the
1355-chemicals or chemicals acting as catalysts effect a direct and
1356-immediate change upon a graphic arts product. Beginning on
1357-July 1, 2017, graphic arts machinery and equipment is included
1358-in the manufacturing and assembling machinery and equipment
1359-exemption under Section 2 of this Act.
1360-(6) Personal property purchased from a teacher-sponsored
1361-student organization affiliated with an elementary or
1362-secondary school located in Illinois.
1363-(7) Farm machinery and equipment, both new and used,
1364-including that manufactured on special order, certified by the
1365-purchaser to be used primarily for production agriculture or
1366-State or federal agricultural programs, including individual
1367-replacement parts for the machinery and equipment, including
1368-machinery and equipment purchased for lease, and including
1369-implements of husbandry defined in Section 1-130 of the
1370-Illinois Vehicle Code, farm machinery and agricultural
1371-chemical and fertilizer spreaders, and nurse wagons required
1372-
1373-
1374-to be registered under Section 3-809 of the Illinois Vehicle
1375-Code, but excluding other motor vehicles required to be
1376-registered under the Illinois Vehicle Code. Horticultural
1377-polyhouses or hoop houses used for propagating, growing, or
1378-overwintering plants shall be considered farm machinery and
1379-equipment under this item (7). Agricultural chemical tender
1380-tanks and dry boxes shall include units sold separately from a
1381-motor vehicle required to be licensed and units sold mounted
1382-on a motor vehicle required to be licensed if the selling price
1383-of the tender is separately stated.
1384-Farm machinery and equipment shall include precision
1385-farming equipment that is installed or purchased to be
1386-installed on farm machinery and equipment, including, but not
1387-limited to, tractors, harvesters, sprayers, planters, seeders,
1388-or spreaders. Precision farming equipment includes, but is not
1389-limited to, soil testing sensors, computers, monitors,
1390-software, global positioning and mapping systems, and other
1391-such equipment.
1392-Farm machinery and equipment also includes computers,
1393-sensors, software, and related equipment used primarily in the
1394-computer-assisted operation of production agriculture
1395-facilities, equipment, and activities such as, but not limited
1396-to, the collection, monitoring, and correlation of animal and
1397-crop data for the purpose of formulating animal diets and
1398-agricultural chemicals.
1399-Beginning on January 1, 2024, farm machinery and equipment
1400-
1401-
1402-also includes electrical power generation equipment used
1403-primarily for production agriculture.
1404-This item (7) is exempt from the provisions of Section
1405-3-75.
1406-(8) Until June 30, 2013, fuel and petroleum products sold
1407-to or used by an air common carrier, certified by the carrier
1408-to be used for consumption, shipment, or storage in the
1409-conduct of its business as an air common carrier, for a flight
1410-destined for or returning from a location or locations outside
1411-the United States without regard to previous or subsequent
1412-domestic stopovers.
1413-Beginning July 1, 2013, fuel and petroleum products sold
1414-to or used by an air carrier, certified by the carrier to be
1415-used for consumption, shipment, or storage in the conduct of
1416-its business as an air common carrier, for a flight that (i) is
1417-engaged in foreign trade or is engaged in trade between the
1418-United States and any of its possessions and (ii) transports
1419-at least one individual or package for hire from the city of
1420-origination to the city of final destination on the same
1421-aircraft, without regard to a change in the flight number of
1422-that aircraft.
1423-(9) Proceeds of mandatory service charges separately
1424-stated on customers' bills for the purchase and consumption of
1425-food and beverages acquired as an incident to the purchase of a
1426-service from a serviceman, to the extent that the proceeds of
1427-the service charge are in fact turned over as tips or as a
1428-
1429-
1430-substitute for tips to the employees who participate directly
1431-in preparing, serving, hosting or cleaning up the food or
1432-beverage function with respect to which the service charge is
1433-imposed.
1434-(10) Until July 1, 2003, oil field exploration, drilling,
1435-and production equipment, including (i) rigs and parts of
1436-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1437-pipe and tubular goods, including casing and drill strings,
1438-(iii) pumps and pump-jack units, (iv) storage tanks and flow
1439-lines, (v) any individual replacement part for oil field
1440-exploration, drilling, and production equipment, and (vi)
1441-machinery and equipment purchased for lease; but excluding
1442-motor vehicles required to be registered under the Illinois
1443-Vehicle Code.
1444-(11) Proceeds from the sale of photoprocessing machinery
1445-and equipment, including repair and replacement parts, both
1446-new and used, including that manufactured on special order,
1447-certified by the purchaser to be used primarily for
1448-photoprocessing, and including photoprocessing machinery and
1449-equipment purchased for lease.
1450-(12) Until July 1, 2028, coal and aggregate exploration,
1451-mining, off-highway hauling, processing, maintenance, and
1452-reclamation equipment, including replacement parts and
1453-equipment, and including equipment purchased for lease, but
1454-excluding motor vehicles required to be registered under the
1455-Illinois Vehicle Code. The changes made to this Section by
1456-
1457-
1458-Public Act 97-767 apply on and after July 1, 2003, but no claim
1459-for credit or refund is allowed on or after August 16, 2013
1460-(the effective date of Public Act 98-456) for such taxes paid
1461-during the period beginning July 1, 2003 and ending on August
1462-16, 2013 (the effective date of Public Act 98-456).
1463-(13) Semen used for artificial insemination of livestock
1464-for direct agricultural production.
1465-(14) Horses, or interests in horses, registered with and
1466-meeting the requirements of any of the Arabian Horse Club
1467-Registry of America, Appaloosa Horse Club, American Quarter
1468-Horse Association, United States Trotting Association, or
1469-Jockey Club, as appropriate, used for purposes of breeding or
1470-racing for prizes. This item (14) is exempt from the
1471-provisions of Section 3-75, and the exemption provided for
1472-under this item (14) applies for all periods beginning May 30,
1473-1995, but no claim for credit or refund is allowed on or after
1474-January 1, 2008 (the effective date of Public Act 95-88) for
1475-such taxes paid during the period beginning May 30, 2000 and
1476-ending on January 1, 2008 (the effective date of Public Act
1477-95-88).
1478-(15) Computers and communications equipment utilized for
1479-any hospital purpose and equipment used in the diagnosis,
1480-analysis, or treatment of hospital patients purchased by a
1481-lessor who leases the equipment, under a lease of one year or
1482-longer executed or in effect at the time the lessor would
1483-otherwise be subject to the tax imposed by this Act, to a
1484-
1485-
1486-hospital that has been issued an active tax exemption
1487-identification number by the Department under Section 1g of
1488-the Retailers' Occupation Tax Act. If the equipment is leased
1489-in a manner that does not qualify for this exemption or is used
1490-in any other non-exempt manner, the lessor shall be liable for
1491-the tax imposed under this Act or the Use Tax Act, as the case
1492-may be, based on the fair market value of the property at the
1493-time the non-qualifying use occurs. No lessor shall collect or
1494-attempt to collect an amount (however designated) that
1495-purports to reimburse that lessor for the tax imposed by this
1496-Act or the Use Tax Act, as the case may be, if the tax has not
1497-been paid by the lessor. If a lessor improperly collects any
1498-such amount from the lessee, the lessee shall have a legal
1499-right to claim a refund of that amount from the lessor. If,
1500-however, that amount is not refunded to the lessee for any
1501-reason, the lessor is liable to pay that amount to the
1502-Department.
1503-(16) Personal property purchased by a lessor who leases
1504-the property, under a lease of one year or longer executed or
1505-in effect at the time the lessor would otherwise be subject to
1506-the tax imposed by this Act, to a governmental body that has
1507-been issued an active tax exemption identification number by
1508-the Department under Section 1g of the Retailers' Occupation
1509-Tax Act. If the property is leased in a manner that does not
1510-qualify for this exemption or is used in any other non-exempt
1511-manner, the lessor shall be liable for the tax imposed under
1512-
1513-
1514-this Act or the Use Tax Act, as the case may be, based on the
1515-fair market value of the property at the time the
1516-non-qualifying use occurs. No lessor shall collect or attempt
1517-to collect an amount (however designated) that purports to
1518-reimburse that lessor for the tax imposed by this Act or the
1519-Use Tax Act, as the case may be, if the tax has not been paid
1520-by the lessor. If a lessor improperly collects any such amount
1521-from the lessee, the lessee shall have a legal right to claim a
1522-refund of that amount from the lessor. If, however, that
1523-amount is not refunded to the lessee for any reason, the lessor
1524-is liable to pay that amount to the Department.
1525-(17) Beginning with taxable years ending on or after
1526-December 31, 1995 and ending with taxable years ending on or
1527-before December 31, 2004, personal property that is donated
1528-for disaster relief to be used in a State or federally declared
1529-disaster area in Illinois or bordering Illinois by a
1530-manufacturer or retailer that is registered in this State to a
1531-corporation, society, association, foundation, or institution
1532-that has been issued a sales tax exemption identification
1533-number by the Department that assists victims of the disaster
1534-who reside within the declared disaster area.
1535-(18) Beginning with taxable years ending on or after
1536-December 31, 1995 and ending with taxable years ending on or
1537-before December 31, 2004, personal property that is used in
1538-the performance of infrastructure repairs in this State,
1539-including, but not limited to, municipal roads and streets,
1540-
1541-
1542-access roads, bridges, sidewalks, waste disposal systems,
1543-water and sewer line extensions, water distribution and
1544-purification facilities, storm water drainage and retention
1545-facilities, and sewage treatment facilities, resulting from a
1546-State or federally declared disaster in Illinois or bordering
1547-Illinois when such repairs are initiated on facilities located
1548-in the declared disaster area within 6 months after the
1549-disaster.
1550-(19) Beginning July 1, 1999, game or game birds purchased
1551-at a "game breeding and hunting preserve area" as that term is
1552-used in the Wildlife Code. This paragraph is exempt from the
1553-provisions of Section 3-75.
1554-(20) A motor vehicle, as that term is defined in Section
1555-1-146 of the Illinois Vehicle Code, that is donated to a
1556-corporation, limited liability company, society, association,
1557-foundation, or institution that is determined by the
1558-Department to be organized and operated exclusively for
1559-educational purposes. For purposes of this exemption, "a
1560-corporation, limited liability company, society, association,
1561-foundation, or institution organized and operated exclusively
1562-for educational purposes" means all tax-supported public
1563-schools, private schools that offer systematic instruction in
1564-useful branches of learning by methods common to public
1565-schools and that compare favorably in their scope and
1566-intensity with the course of study presented in tax-supported
1567-schools, and vocational or technical schools or institutes
1568-
1569-
1570-organized and operated exclusively to provide a course of
1571-study of not less than 6 weeks duration and designed to prepare
1572-individuals to follow a trade or to pursue a manual,
1573-technical, mechanical, industrial, business, or commercial
1574-occupation.
1575-(21) Beginning January 1, 2000, personal property,
1576-including food, purchased through fundraising events for the
1577-benefit of a public or private elementary or secondary school,
1578-a group of those schools, or one or more school districts if
1579-the events are sponsored by an entity recognized by the school
1580-district that consists primarily of volunteers and includes
1581-parents and teachers of the school children. This paragraph
1582-does not apply to fundraising events (i) for the benefit of
1583-private home instruction or (ii) for which the fundraising
1584-entity purchases the personal property sold at the events from
1585-another individual or entity that sold the property for the
1586-purpose of resale by the fundraising entity and that profits
1587-from the sale to the fundraising entity. This paragraph is
1588-exempt from the provisions of Section 3-75.
1589-(22) Beginning January 1, 2000 and through December 31,
1590-2001, new or used automatic vending machines that prepare and
1591-serve hot food and beverages, including coffee, soup, and
1592-other items, and replacement parts for these machines.
1593-Beginning January 1, 2002 and through June 30, 2003, machines
1594-and parts for machines used in commercial, coin-operated
1595-amusement and vending business if a use or occupation tax is
1596-
1597-
1598-paid on the gross receipts derived from the use of the
1599-commercial, coin-operated amusement and vending machines. This
1600-paragraph is exempt from the provisions of Section 3-75.
1601-(23) Beginning August 23, 2001 and through June 30, 2016,
1602-food for human consumption that is to be consumed off the
1603-premises where it is sold (other than alcoholic beverages,
1604-soft drinks, and food that has been prepared for immediate
1605-consumption) and prescription and nonprescription medicines,
1606-drugs, medical appliances, and insulin, urine testing
1607-materials, syringes, and needles used by diabetics, for human
1608-use, when purchased for use by a person receiving medical
1609-assistance under Article V of the Illinois Public Aid Code who
1610-resides in a licensed long-term care facility, as defined in
1611-the Nursing Home Care Act, or in a licensed facility as defined
1612-in the ID/DD Community Care Act, the MC/DD Act, or the
1613-Specialized Mental Health Rehabilitation Act of 2013.
1614-(24) Beginning on August 2, 2001 (the effective date of
1615-Public Act 92-227), computers and communications equipment
1616-utilized for any hospital purpose and equipment used in the
1617-diagnosis, analysis, or treatment of hospital patients
1618-purchased by a lessor who leases the equipment, under a lease
1619-of one year or longer executed or in effect at the time the
1620-lessor would otherwise be subject to the tax imposed by this
1621-Act, to a hospital that has been issued an active tax exemption
1622-identification number by the Department under Section 1g of
1623-the Retailers' Occupation Tax Act. If the equipment is leased
1624-
1625-
1626-in a manner that does not qualify for this exemption or is used
1627-in any other nonexempt manner, the lessor shall be liable for
1628-the tax imposed under this Act or the Use Tax Act, as the case
1629-may be, based on the fair market value of the property at the
1630-time the nonqualifying use occurs. No lessor shall collect or
1631-attempt to collect an amount (however designated) that
1632-purports to reimburse that lessor for the tax imposed by this
1633-Act or the Use Tax Act, as the case may be, if the tax has not
1634-been paid by the lessor. If a lessor improperly collects any
1635-such amount from the lessee, the lessee shall have a legal
1636-right to claim a refund of that amount from the lessor. If,
1637-however, that amount is not refunded to the lessee for any
1638-reason, the lessor is liable to pay that amount to the
1639-Department. This paragraph is exempt from the provisions of
1640-Section 3-75.
1641-(25) Beginning on August 2, 2001 (the effective date of
1642-Public Act 92-227), personal property purchased by a lessor
1643-who leases the property, under a lease of one year or longer
1644-executed or in effect at the time the lessor would otherwise be
1645-subject to the tax imposed by this Act, to a governmental body
1646-that has been issued an active tax exemption identification
1647-number by the Department under Section 1g of the Retailers'
1648-Occupation Tax Act. If the property is leased in a manner that
1649-does not qualify for this exemption or is used in any other
1650-nonexempt manner, the lessor shall be liable for the tax
1651-imposed under this Act or the Use Tax Act, as the case may be,
1652-
1653-
1654-based on the fair market value of the property at the time the
1655-nonqualifying use occurs. No lessor shall collect or attempt
1656-to collect an amount (however designated) that purports to
1657-reimburse that lessor for the tax imposed by this Act or the
1658-Use Tax Act, as the case may be, if the tax has not been paid
1659-by the lessor. If a lessor improperly collects any such amount
1660-from the lessee, the lessee shall have a legal right to claim a
1661-refund of that amount from the lessor. If, however, that
1662-amount is not refunded to the lessee for any reason, the lessor
1663-is liable to pay that amount to the Department. This paragraph
1664-is exempt from the provisions of Section 3-75.
1665-(26) Beginning January 1, 2008, tangible personal property
1666-used in the construction or maintenance of a community water
1667-supply, as defined under Section 3.145 of the Environmental
1668-Protection Act, that is operated by a not-for-profit
1669-corporation that holds a valid water supply permit issued
1670-under Title IV of the Environmental Protection Act. This
1671-paragraph is exempt from the provisions of Section 3-75.
1672-(27) Beginning January 1, 2010 and continuing through
1673-December 31, 2029, materials, parts, equipment, components,
1674-and furnishings incorporated into or upon an aircraft as part
1675-of the modification, refurbishment, completion, replacement,
1676-repair, or maintenance of the aircraft. This exemption
1677-includes consumable supplies used in the modification,
1678-refurbishment, completion, replacement, repair, and
1679-maintenance of aircraft. However, until January 1, 2024, this
1680-
1681-
1682-exemption excludes any materials, parts, equipment,
1683-components, and consumable supplies used in the modification,
1684-replacement, repair, and maintenance of aircraft engines or
1685-power plants, whether such engines or power plants are
1686-installed or uninstalled upon any such aircraft. "Consumable
1687-supplies" include, but are not limited to, adhesive, tape,
1688-sandpaper, general purpose lubricants, cleaning solution,
1689-latex gloves, and protective films.
1690-Beginning January 1, 2010 and continuing through December
1691-31, 2023, this exemption applies only to the use of qualifying
1692-tangible personal property transferred incident to the
1693-modification, refurbishment, completion, replacement, repair,
1694-or maintenance of aircraft by persons who (i) hold an Air
1695-Agency Certificate and are empowered to operate an approved
1696-repair station by the Federal Aviation Administration, (ii)
1697-have a Class IV Rating, and (iii) conduct operations in
1698-accordance with Part 145 of the Federal Aviation Regulations.
1699-From January 1, 2024 through December 31, 2029, this exemption
1700-applies only to the use of qualifying tangible personal
1701-property by: (A) persons who modify, refurbish, complete,
1702-repair, replace, or maintain aircraft and who (i) hold an Air
1703-Agency Certificate and are empowered to operate an approved
1704-repair station by the Federal Aviation Administration, (ii)
1705-have a Class IV Rating, and (iii) conduct operations in
1706-accordance with Part 145 of the Federal Aviation Regulations;
1707-and (B) persons who engage in the modification, replacement,
1708-
1709-
1710-repair, and maintenance of aircraft engines or power plants
1711-without regard to whether or not those persons meet the
1712-qualifications of item (A).
1713-The exemption does not include aircraft operated by a
1714-commercial air carrier providing scheduled passenger air
1715-service pursuant to authority issued under Part 121 or Part
1716-129 of the Federal Aviation Regulations. The changes made to
1717-this paragraph (27) by Public Act 98-534 are declarative of
1718-existing law. It is the intent of the General Assembly that the
1719-exemption under this paragraph (27) applies continuously from
1720-January 1, 2010 through December 31, 2024; however, no claim
1721-for credit or refund is allowed for taxes paid as a result of
1722-the disallowance of this exemption on or after January 1, 2015
1723-and prior to February 5, 2020 (the effective date of Public Act
1724-101-629).
1725-(28) Tangible personal property purchased by a
1726-public-facilities corporation, as described in Section
1727-11-65-10 of the Illinois Municipal Code, for purposes of
1728-constructing or furnishing a municipal convention hall, but
1729-only if the legal title to the municipal convention hall is
1730-transferred to the municipality without any further
1731-consideration by or on behalf of the municipality at the time
1732-of the completion of the municipal convention hall or upon the
1733-retirement or redemption of any bonds or other debt
1734-instruments issued by the public-facilities corporation in
1735-connection with the development of the municipal convention
1736-
1737-
1738-hall. This exemption includes existing public-facilities
1739-corporations as provided in Section 11-65-25 of the Illinois
1740-Municipal Code. This paragraph is exempt from the provisions
1741-of Section 3-75.
1742-(29) Beginning January 1, 2017 and through December 31,
1743-2026, menstrual pads, tampons, and menstrual cups.
1744-(30) Tangible personal property transferred to a purchaser
1745-who is exempt from the tax imposed by this Act by operation of
1746-federal law. This paragraph is exempt from the provisions of
1747-Section 3-75.
1748-(31) Qualified tangible personal property used in the
1749-construction or operation of a data center that has been
1750-granted a certificate of exemption by the Department of
1751-Commerce and Economic Opportunity, whether that tangible
1752-personal property is purchased by the owner, operator, or
1753-tenant of the data center or by a contractor or subcontractor
1754-of the owner, operator, or tenant. Data centers that would
1755-have qualified for a certificate of exemption prior to January
1756-1, 2020 had Public Act 101-31 been in effect, may apply for and
1757-obtain an exemption for subsequent purchases of computer
1758-equipment or enabling software purchased or leased to upgrade,
1759-supplement, or replace computer equipment or enabling software
1760-purchased or leased in the original investment that would have
1761-qualified.
1762-The Department of Commerce and Economic Opportunity shall
1763-grant a certificate of exemption under this item (31) to
1764-
1765-
1766-qualified data centers as defined by Section 605-1025 of the
1767-Department of Commerce and Economic Opportunity Law of the
1768-Civil Administrative Code of Illinois.
1769-For the purposes of this item (31):
1770-"Data center" means a building or a series of
1771-buildings rehabilitated or constructed to house working
1772-servers in one physical location or multiple sites within
1773-the State of Illinois.
1774-"Qualified tangible personal property" means:
1775-electrical systems and equipment; climate control and
1776-chilling equipment and systems; mechanical systems and
1777-equipment; monitoring and secure systems; emergency
1778-generators; hardware; computers; servers; data storage
1779-devices; network connectivity equipment; racks; cabinets;
1780-telecommunications cabling infrastructure; raised floor
1781-systems; peripheral components or systems; software;
1782-mechanical, electrical, or plumbing systems; battery
1783-systems; cooling systems and towers; temperature control
1784-systems; other cabling; and other data center
1785-infrastructure equipment and systems necessary to operate
1786-qualified tangible personal property, including fixtures;
1787-and component parts of any of the foregoing, including
1788-installation, maintenance, repair, refurbishment, and
1789-replacement of qualified tangible personal property to
1790-generate, transform, transmit, distribute, or manage
1791-electricity necessary to operate qualified tangible
1792-
1793-
1794-personal property; and all other tangible personal
1795-property that is essential to the operations of a computer
1796-data center. The term "qualified tangible personal
1797-property" also includes building materials physically
1798-incorporated into in to the qualifying data center. To
1799-document the exemption allowed under this Section, the
1800-retailer must obtain from the purchaser a copy of the
1801-certificate of eligibility issued by the Department of
1802-Commerce and Economic Opportunity.
1803-This item (31) is exempt from the provisions of Section
1804-3-75.
1805-(32) Beginning July 1, 2022, breast pumps, breast pump
1806-collection and storage supplies, and breast pump kits. This
1807-item (32) is exempt from the provisions of Section 3-75. As
1808-used in this item (32):
1809-"Breast pump" means an electrically controlled or
1810-manually controlled pump device designed or marketed to be
1811-used to express milk from a human breast during lactation,
1812-including the pump device and any battery, AC adapter, or
1813-other power supply unit that is used to power the pump
1814-device and is packaged and sold with the pump device at the
1815-time of sale.
1816-"Breast pump collection and storage supplies" means
1817-items of tangible personal property designed or marketed
1818-to be used in conjunction with a breast pump to collect
1819-milk expressed from a human breast and to store collected
1820-
1821-
1822-milk until it is ready for consumption.
1823-"Breast pump collection and storage supplies"
1824-includes, but is not limited to: breast shields and breast
1825-shield connectors; breast pump tubes and tubing adapters;
1826-breast pump valves and membranes; backflow protectors and
1827-backflow protector adaptors; bottles and bottle caps
1828-specific to the operation of the breast pump; and breast
1829-milk storage bags.
1830-"Breast pump collection and storage supplies" does not
1831-include: (1) bottles and bottle caps not specific to the
1832-operation of the breast pump; (2) breast pump travel bags
1833-and other similar carrying accessories, including ice
1834-packs, labels, and other similar products; (3) breast pump
1835-cleaning supplies; (4) nursing bras, bra pads, breast
1836-shells, and other similar products; and (5) creams,
1837-ointments, and other similar products that relieve
1838-breastfeeding-related symptoms or conditions of the
1839-breasts or nipples, unless sold as part of a breast pump
1840-kit that is pre-packaged by the breast pump manufacturer
1841-or distributor.
1842-"Breast pump kit" means a kit that: (1) contains no
1843-more than a breast pump, breast pump collection and
1844-storage supplies, a rechargeable battery for operating the
1845-breast pump, a breastmilk cooler, bottle stands, ice
1846-packs, and a breast pump carrying case; and (2) is
1847-pre-packaged as a breast pump kit by the breast pump
1848-
1849-
1850-manufacturer or distributor.
1851-(33) Tangible personal property sold by or on behalf of
1852-the State Treasurer pursuant to the Revised Uniform Unclaimed
1853-Property Act. This item (33) is exempt from the provisions of
1854-Section 3-75.
1855-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1856-Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1857-75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1858-Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1859-eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-14-23.)
1860-(Text of Section after amendment by P.A. 103-384)
1861-Sec. 3-5. Exemptions. Use of the following tangible
1862-personal property is exempt from the tax imposed by this Act:
1863-(1) Personal property purchased from a corporation,
1864-society, association, foundation, institution, or
1865-organization, other than a limited liability company, that is
1866-organized and operated as a not-for-profit service enterprise
1867-for the benefit of persons 65 years of age or older if the
1868-personal property was not purchased by the enterprise for the
1869-purpose of resale by the enterprise.
1870-(2) Personal property purchased by a non-profit Illinois
1871-county fair association for use in conducting, operating, or
1872-promoting the county fair.
1873-(3) Personal property purchased by a not-for-profit arts
1874-or cultural organization that establishes, by proof required
1875-
1876-
1877-by the Department by rule, that it has received an exemption
1878-under Section 501(c)(3) of the Internal Revenue Code and that
1879-is organized and operated primarily for the presentation or
1880-support of arts or cultural programming, activities, or
1881-services. These organizations include, but are not limited to,
1882-music and dramatic arts organizations such as symphony
1883-orchestras and theatrical groups, arts and cultural service
1884-organizations, local arts councils, visual arts organizations,
1885-and media arts organizations. On and after July 1, 2001 (the
1886-effective date of Public Act 92-35), however, an entity
1887-otherwise eligible for this exemption shall not make tax-free
1888-purchases unless it has an active identification number issued
1889-by the Department.
1890-(4) Legal tender, currency, medallions, or gold or silver
1891-coinage issued by the State of Illinois, the government of the
1892-United States of America, or the government of any foreign
1893-country, and bullion.
1894-(5) Until July 1, 2003 and beginning again on September 1,
1895-2004 through August 30, 2014, graphic arts machinery and
1896-equipment, including repair and replacement parts, both new
1897-and used, and including that manufactured on special order or
1898-purchased for lease, certified by the purchaser to be used
1899-primarily for graphic arts production. Equipment includes
1900-chemicals or chemicals acting as catalysts but only if the
1901-chemicals or chemicals acting as catalysts effect a direct and
1902-immediate change upon a graphic arts product. Beginning on
1903-
1904-
1905-July 1, 2017, graphic arts machinery and equipment is included
1906-in the manufacturing and assembling machinery and equipment
1907-exemption under Section 2 of this Act.
1908-(6) Personal property purchased from a teacher-sponsored
1909-student organization affiliated with an elementary or
1910-secondary school located in Illinois.
1911-(7) Farm machinery and equipment, both new and used,
1912-including that manufactured on special order, certified by the
1913-purchaser to be used primarily for production agriculture or
1914-State or federal agricultural programs, including individual
1915-replacement parts for the machinery and equipment, including
1916-machinery and equipment purchased for lease, and including
1917-implements of husbandry defined in Section 1-130 of the
1918-Illinois Vehicle Code, farm machinery and agricultural
1919-chemical and fertilizer spreaders, and nurse wagons required
1920-to be registered under Section 3-809 of the Illinois Vehicle
1921-Code, but excluding other motor vehicles required to be
1922-registered under the Illinois Vehicle Code. Horticultural
1923-polyhouses or hoop houses used for propagating, growing, or
1924-overwintering plants shall be considered farm machinery and
1925-equipment under this item (7). Agricultural chemical tender
1926-tanks and dry boxes shall include units sold separately from a
1927-motor vehicle required to be licensed and units sold mounted
1928-on a motor vehicle required to be licensed if the selling price
1929-of the tender is separately stated.
1930-Farm machinery and equipment shall include precision
1931-
1932-
1933-farming equipment that is installed or purchased to be
1934-installed on farm machinery and equipment, including, but not
1935-limited to, tractors, harvesters, sprayers, planters, seeders,
1936-or spreaders. Precision farming equipment includes, but is not
1937-limited to, soil testing sensors, computers, monitors,
1938-software, global positioning and mapping systems, and other
1939-such equipment.
1940-Farm machinery and equipment also includes computers,
1941-sensors, software, and related equipment used primarily in the
1942-computer-assisted operation of production agriculture
1943-facilities, equipment, and activities such as, but not limited
1944-to, the collection, monitoring, and correlation of animal and
1945-crop data for the purpose of formulating animal diets and
1946-agricultural chemicals.
1947-Beginning on January 1, 2024, farm machinery and equipment
1948-also includes electrical power generation equipment used
1949-primarily for production agriculture.
1950-This item (7) is exempt from the provisions of Section
1951-3-75.
1952-(8) Until June 30, 2013, fuel and petroleum products sold
1953-to or used by an air common carrier, certified by the carrier
1954-to be used for consumption, shipment, or storage in the
1955-conduct of its business as an air common carrier, for a flight
1956-destined for or returning from a location or locations outside
1957-the United States without regard to previous or subsequent
1958-domestic stopovers.
1959-
1960-
1961-Beginning July 1, 2013, fuel and petroleum products sold
1962-to or used by an air carrier, certified by the carrier to be
1963-used for consumption, shipment, or storage in the conduct of
1964-its business as an air common carrier, for a flight that (i) is
1965-engaged in foreign trade or is engaged in trade between the
1966-United States and any of its possessions and (ii) transports
1967-at least one individual or package for hire from the city of
1968-origination to the city of final destination on the same
1969-aircraft, without regard to a change in the flight number of
1970-that aircraft.
1971-(9) Proceeds of mandatory service charges separately
1972-stated on customers' bills for the purchase and consumption of
1973-food and beverages acquired as an incident to the purchase of a
1974-service from a serviceman, to the extent that the proceeds of
1975-the service charge are in fact turned over as tips or as a
1976-substitute for tips to the employees who participate directly
1977-in preparing, serving, hosting or cleaning up the food or
1978-beverage function with respect to which the service charge is
1979-imposed.
1980-(10) Until July 1, 2003, oil field exploration, drilling,
1981-and production equipment, including (i) rigs and parts of
1982-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1983-pipe and tubular goods, including casing and drill strings,
1984-(iii) pumps and pump-jack units, (iv) storage tanks and flow
1985-lines, (v) any individual replacement part for oil field
1986-exploration, drilling, and production equipment, and (vi)
1987-
1988-
1989-machinery and equipment purchased for lease; but excluding
1990-motor vehicles required to be registered under the Illinois
1991-Vehicle Code.
1992-(11) Proceeds from the sale of photoprocessing machinery
1993-and equipment, including repair and replacement parts, both
1994-new and used, including that manufactured on special order,
1995-certified by the purchaser to be used primarily for
1996-photoprocessing, and including photoprocessing machinery and
1997-equipment purchased for lease.
1998-(12) Until July 1, 2028, coal and aggregate exploration,
1999-mining, off-highway hauling, processing, maintenance, and
2000-reclamation equipment, including replacement parts and
2001-equipment, and including equipment purchased for lease, but
2002-excluding motor vehicles required to be registered under the
2003-Illinois Vehicle Code. The changes made to this Section by
2004-Public Act 97-767 apply on and after July 1, 2003, but no claim
2005-for credit or refund is allowed on or after August 16, 2013
2006-(the effective date of Public Act 98-456) for such taxes paid
2007-during the period beginning July 1, 2003 and ending on August
2008-16, 2013 (the effective date of Public Act 98-456).
2009-(13) Semen used for artificial insemination of livestock
2010-for direct agricultural production.
2011-(14) Horses, or interests in horses, registered with and
2012-meeting the requirements of any of the Arabian Horse Club
2013-Registry of America, Appaloosa Horse Club, American Quarter
2014-Horse Association, United States Trotting Association, or
2015-
2016-
2017-Jockey Club, as appropriate, used for purposes of breeding or
2018-racing for prizes. This item (14) is exempt from the
2019-provisions of Section 3-75, and the exemption provided for
2020-under this item (14) applies for all periods beginning May 30,
2021-1995, but no claim for credit or refund is allowed on or after
2022-January 1, 2008 (the effective date of Public Act 95-88) for
2023-such taxes paid during the period beginning May 30, 2000 and
2024-ending on January 1, 2008 (the effective date of Public Act
2025-95-88).
2026-(15) Computers and communications equipment utilized for
2027-any hospital purpose and equipment used in the diagnosis,
2028-analysis, or treatment of hospital patients purchased by a
2029-lessor who leases the equipment, under a lease of one year or
2030-longer executed or in effect at the time the lessor would
2031-otherwise be subject to the tax imposed by this Act, to a
2032-hospital that has been issued an active tax exemption
2033-identification number by the Department under Section 1g of
2034-the Retailers' Occupation Tax Act. If the equipment is leased
2035-in a manner that does not qualify for this exemption or is used
2036-in any other non-exempt manner, the lessor shall be liable for
2037-the tax imposed under this Act or the Use Tax Act, as the case
2038-may be, based on the fair market value of the property at the
2039-time the non-qualifying use occurs. No lessor shall collect or
2040-attempt to collect an amount (however designated) that
2041-purports to reimburse that lessor for the tax imposed by this
2042-Act or the Use Tax Act, as the case may be, if the tax has not
2043-
2044-
2045-been paid by the lessor. If a lessor improperly collects any
2046-such amount from the lessee, the lessee shall have a legal
2047-right to claim a refund of that amount from the lessor. If,
2048-however, that amount is not refunded to the lessee for any
2049-reason, the lessor is liable to pay that amount to the
2050-Department.
2051-(16) Personal property purchased by a lessor who leases
2052-the property, under a lease of one year or longer executed or
2053-in effect at the time the lessor would otherwise be subject to
2054-the tax imposed by this Act, to a governmental body that has
2055-been issued an active tax exemption identification number by
2056-the Department under Section 1g of the Retailers' Occupation
2057-Tax Act. If the property is leased in a manner that does not
2058-qualify for this exemption or is used in any other non-exempt
2059-manner, the lessor shall be liable for the tax imposed under
2060-this Act or the Use Tax Act, as the case may be, based on the
2061-fair market value of the property at the time the
2062-non-qualifying use occurs. No lessor shall collect or attempt
2063-to collect an amount (however designated) that purports to
2064-reimburse that lessor for the tax imposed by this Act or the
2065-Use Tax Act, as the case may be, if the tax has not been paid
2066-by the lessor. If a lessor improperly collects any such amount
2067-from the lessee, the lessee shall have a legal right to claim a
2068-refund of that amount from the lessor. If, however, that
2069-amount is not refunded to the lessee for any reason, the lessor
2070-is liable to pay that amount to the Department.
2071-
2072-
2073-(17) Beginning with taxable years ending on or after
2074-December 31, 1995 and ending with taxable years ending on or
2075-before December 31, 2004, personal property that is donated
2076-for disaster relief to be used in a State or federally declared
2077-disaster area in Illinois or bordering Illinois by a
2078-manufacturer or retailer that is registered in this State to a
2079-corporation, society, association, foundation, or institution
2080-that has been issued a sales tax exemption identification
2081-number by the Department that assists victims of the disaster
2082-who reside within the declared disaster area.
2083-(18) Beginning with taxable years ending on or after
2084-December 31, 1995 and ending with taxable years ending on or
2085-before December 31, 2004, personal property that is used in
2086-the performance of infrastructure repairs in this State,
2087-including, but not limited to, municipal roads and streets,
2088-access roads, bridges, sidewalks, waste disposal systems,
2089-water and sewer line extensions, water distribution and
2090-purification facilities, storm water drainage and retention
2091-facilities, and sewage treatment facilities, resulting from a
2092-State or federally declared disaster in Illinois or bordering
2093-Illinois when such repairs are initiated on facilities located
2094-in the declared disaster area within 6 months after the
2095-disaster.
2096-(19) Beginning July 1, 1999, game or game birds purchased
2097-at a "game breeding and hunting preserve area" as that term is
2098-used in the Wildlife Code. This paragraph is exempt from the
2099-
2100-
2101-provisions of Section 3-75.
2102-(20) A motor vehicle, as that term is defined in Section
2103-1-146 of the Illinois Vehicle Code, that is donated to a
2104-corporation, limited liability company, society, association,
2105-foundation, or institution that is determined by the
2106-Department to be organized and operated exclusively for
2107-educational purposes. For purposes of this exemption, "a
2108-corporation, limited liability company, society, association,
2109-foundation, or institution organized and operated exclusively
2110-for educational purposes" means all tax-supported public
2111-schools, private schools that offer systematic instruction in
2112-useful branches of learning by methods common to public
2113-schools and that compare favorably in their scope and
2114-intensity with the course of study presented in tax-supported
2115-schools, and vocational or technical schools or institutes
2116-organized and operated exclusively to provide a course of
2117-study of not less than 6 weeks duration and designed to prepare
2118-individuals to follow a trade or to pursue a manual,
2119-technical, mechanical, industrial, business, or commercial
2120-occupation.
2121-(21) Beginning January 1, 2000, personal property,
2122-including food, purchased through fundraising events for the
2123-benefit of a public or private elementary or secondary school,
2124-a group of those schools, or one or more school districts if
2125-the events are sponsored by an entity recognized by the school
2126-district that consists primarily of volunteers and includes
2127-
2128-
2129-parents and teachers of the school children. This paragraph
2130-does not apply to fundraising events (i) for the benefit of
2131-private home instruction or (ii) for which the fundraising
2132-entity purchases the personal property sold at the events from
2133-another individual or entity that sold the property for the
2134-purpose of resale by the fundraising entity and that profits
2135-from the sale to the fundraising entity. This paragraph is
2136-exempt from the provisions of Section 3-75.
2137-(22) Beginning January 1, 2000 and through December 31,
2138-2001, new or used automatic vending machines that prepare and
2139-serve hot food and beverages, including coffee, soup, and
2140-other items, and replacement parts for these machines.
2141-Beginning January 1, 2002 and through June 30, 2003, machines
2142-and parts for machines used in commercial, coin-operated
2143-amusement and vending business if a use or occupation tax is
2144-paid on the gross receipts derived from the use of the
2145-commercial, coin-operated amusement and vending machines. This
2146-paragraph is exempt from the provisions of Section 3-75.
2147-(23) Beginning August 23, 2001 and through June 30, 2016,
2148-food for human consumption that is to be consumed off the
2149-premises where it is sold (other than alcoholic beverages,
2150-soft drinks, and food that has been prepared for immediate
2151-consumption) and prescription and nonprescription medicines,
2152-drugs, medical appliances, and insulin, urine testing
2153-materials, syringes, and needles used by diabetics, for human
2154-use, when purchased for use by a person receiving medical
2155-
2156-
2157-assistance under Article V of the Illinois Public Aid Code who
2158-resides in a licensed long-term care facility, as defined in
2159-the Nursing Home Care Act, or in a licensed facility as defined
2160-in the ID/DD Community Care Act, the MC/DD Act, or the
2161-Specialized Mental Health Rehabilitation Act of 2013.
2162-(24) Beginning on August 2, 2001 (the effective date of
2163-Public Act 92-227), computers and communications equipment
2164-utilized for any hospital purpose and equipment used in the
2165-diagnosis, analysis, or treatment of hospital patients
2166-purchased by a lessor who leases the equipment, under a lease
2167-of one year or longer executed or in effect at the time the
2168-lessor would otherwise be subject to the tax imposed by this
2169-Act, to a hospital that has been issued an active tax exemption
2170-identification number by the Department under Section 1g of
2171-the Retailers' Occupation Tax Act. If the equipment is leased
2172-in a manner that does not qualify for this exemption or is used
2173-in any other nonexempt manner, the lessor shall be liable for
2174-the tax imposed under this Act or the Use Tax Act, as the case
2175-may be, based on the fair market value of the property at the
2176-time the nonqualifying use occurs. No lessor shall collect or
2177-attempt to collect an amount (however designated) that
2178-purports to reimburse that lessor for the tax imposed by this
2179-Act or the Use Tax Act, as the case may be, if the tax has not
2180-been paid by the lessor. If a lessor improperly collects any
2181-such amount from the lessee, the lessee shall have a legal
2182-right to claim a refund of that amount from the lessor. If,
2183-
2184-
2185-however, that amount is not refunded to the lessee for any
2186-reason, the lessor is liable to pay that amount to the
2187-Department. This paragraph is exempt from the provisions of
2188-Section 3-75.
2189-(25) Beginning on August 2, 2001 (the effective date of
2190-Public Act 92-227), personal property purchased by a lessor
2191-who leases the property, under a lease of one year or longer
2192-executed or in effect at the time the lessor would otherwise be
2193-subject to the tax imposed by this Act, to a governmental body
2194-that has been issued an active tax exemption identification
2195-number by the Department under Section 1g of the Retailers'
2196-Occupation Tax Act. If the property is leased in a manner that
2197-does not qualify for this exemption or is used in any other
2198-nonexempt manner, the lessor shall be liable for the tax
2199-imposed under this Act or the Use Tax Act, as the case may be,
2200-based on the fair market value of the property at the time the
2201-nonqualifying use occurs. No lessor shall collect or attempt
2202-to collect an amount (however designated) that purports to
2203-reimburse that lessor for the tax imposed by this Act or the
2204-Use Tax Act, as the case may be, if the tax has not been paid
2205-by the lessor. If a lessor improperly collects any such amount
2206-from the lessee, the lessee shall have a legal right to claim a
2207-refund of that amount from the lessor. If, however, that
2208-amount is not refunded to the lessee for any reason, the lessor
2209-is liable to pay that amount to the Department. This paragraph
2210-is exempt from the provisions of Section 3-75.
2211-
2212-
2213-(26) Beginning January 1, 2008, tangible personal property
2214-used in the construction or maintenance of a community water
2215-supply, as defined under Section 3.145 of the Environmental
2216-Protection Act, that is operated by a not-for-profit
2217-corporation that holds a valid water supply permit issued
2218-under Title IV of the Environmental Protection Act. This
2219-paragraph is exempt from the provisions of Section 3-75.
2220-(27) Beginning January 1, 2010 and continuing through
2221-December 31, 2029, materials, parts, equipment, components,
2222-and furnishings incorporated into or upon an aircraft as part
2223-of the modification, refurbishment, completion, replacement,
2224-repair, or maintenance of the aircraft. This exemption
2225-includes consumable supplies used in the modification,
2226-refurbishment, completion, replacement, repair, and
2227-maintenance of aircraft. However, until January 1, 2024, this
2228-exemption excludes any materials, parts, equipment,
2229-components, and consumable supplies used in the modification,
2230-replacement, repair, and maintenance of aircraft engines or
2231-power plants, whether such engines or power plants are
2232-installed or uninstalled upon any such aircraft. "Consumable
2233-supplies" include, but are not limited to, adhesive, tape,
2234-sandpaper, general purpose lubricants, cleaning solution,
2235-latex gloves, and protective films.
2236-Beginning January 1, 2010 and continuing through December
2237-31, 2023, this exemption applies only to the use of qualifying
2238-tangible personal property transferred incident to the
2239-
2240-
2241-modification, refurbishment, completion, replacement, repair,
2242-or maintenance of aircraft by persons who (i) hold an Air
2243-Agency Certificate and are empowered to operate an approved
2244-repair station by the Federal Aviation Administration, (ii)
2245-have a Class IV Rating, and (iii) conduct operations in
2246-accordance with Part 145 of the Federal Aviation Regulations.
2247-From January 1, 2024 through December 31, 2029, this exemption
2248-applies only to the use of qualifying tangible personal
2249-property by: (A) persons who modify, refurbish, complete,
2250-repair, replace, or maintain aircraft and who (i) hold an Air
2251-Agency Certificate and are empowered to operate an approved
2252-repair station by the Federal Aviation Administration, (ii)
2253-have a Class IV Rating, and (iii) conduct operations in
2254-accordance with Part 145 of the Federal Aviation Regulations;
2255-and (B) persons who engage in the modification, replacement,
2256-repair, and maintenance of aircraft engines or power plants
2257-without regard to whether or not those persons meet the
2258-qualifications of item (A).
2259-The exemption does not include aircraft operated by a
2260-commercial air carrier providing scheduled passenger air
2261-service pursuant to authority issued under Part 121 or Part
2262-129 of the Federal Aviation Regulations. The changes made to
2263-this paragraph (27) by Public Act 98-534 are declarative of
2264-existing law. It is the intent of the General Assembly that the
2265-exemption under this paragraph (27) applies continuously from
2266-January 1, 2010 through December 31, 2024; however, no claim
2267-
2268-
2269-for credit or refund is allowed for taxes paid as a result of
2270-the disallowance of this exemption on or after January 1, 2015
2271-and prior to February 5, 2020 (the effective date of Public Act
2272-101-629).
2273-(28) Tangible personal property purchased by a
2274-public-facilities corporation, as described in Section
2275-11-65-10 of the Illinois Municipal Code, for purposes of
2276-constructing or furnishing a municipal convention hall, but
2277-only if the legal title to the municipal convention hall is
2278-transferred to the municipality without any further
2279-consideration by or on behalf of the municipality at the time
2280-of the completion of the municipal convention hall or upon the
2281-retirement or redemption of any bonds or other debt
2282-instruments issued by the public-facilities corporation in
2283-connection with the development of the municipal convention
2284-hall. This exemption includes existing public-facilities
2285-corporations as provided in Section 11-65-25 of the Illinois
2286-Municipal Code. This paragraph is exempt from the provisions
2287-of Section 3-75.
2288-(29) Beginning January 1, 2017 and through December 31,
2289-2026, menstrual pads, tampons, and menstrual cups.
2290-(30) Tangible personal property transferred to a purchaser
2291-who is exempt from the tax imposed by this Act by operation of
2292-federal law. This paragraph is exempt from the provisions of
2293-Section 3-75.
2294-(31) Qualified tangible personal property used in the
2295-
2296-
2297-construction or operation of a data center that has been
2298-granted a certificate of exemption by the Department of
2299-Commerce and Economic Opportunity, whether that tangible
2300-personal property is purchased by the owner, operator, or
2301-tenant of the data center or by a contractor or subcontractor
2302-of the owner, operator, or tenant. Data centers that would
2303-have qualified for a certificate of exemption prior to January
2304-1, 2020 had Public Act 101-31 been in effect, may apply for and
2305-obtain an exemption for subsequent purchases of computer
2306-equipment or enabling software purchased or leased to upgrade,
2307-supplement, or replace computer equipment or enabling software
2308-purchased or leased in the original investment that would have
2309-qualified.
2310-The Department of Commerce and Economic Opportunity shall
2311-grant a certificate of exemption under this item (31) to
2312-qualified data centers as defined by Section 605-1025 of the
2313-Department of Commerce and Economic Opportunity Law of the
2314-Civil Administrative Code of Illinois.
2315-For the purposes of this item (31):
2316-"Data center" means a building or a series of
2317-buildings rehabilitated or constructed to house working
2318-servers in one physical location or multiple sites within
2319-the State of Illinois.
2320-"Qualified tangible personal property" means:
2321-electrical systems and equipment; climate control and
2322-chilling equipment and systems; mechanical systems and
2323-
2324-
2325-equipment; monitoring and secure systems; emergency
2326-generators; hardware; computers; servers; data storage
2327-devices; network connectivity equipment; racks; cabinets;
2328-telecommunications cabling infrastructure; raised floor
2329-systems; peripheral components or systems; software;
2330-mechanical, electrical, or plumbing systems; battery
2331-systems; cooling systems and towers; temperature control
2332-systems; other cabling; and other data center
2333-infrastructure equipment and systems necessary to operate
2334-qualified tangible personal property, including fixtures;
2335-and component parts of any of the foregoing, including
2336-installation, maintenance, repair, refurbishment, and
2337-replacement of qualified tangible personal property to
2338-generate, transform, transmit, distribute, or manage
2339-electricity necessary to operate qualified tangible
2340-personal property; and all other tangible personal
2341-property that is essential to the operations of a computer
2342-data center. The term "qualified tangible personal
2343-property" also includes building materials physically
2344-incorporated into in to the qualifying data center. To
2345-document the exemption allowed under this Section, the
2346-retailer must obtain from the purchaser a copy of the
2347-certificate of eligibility issued by the Department of
2348-Commerce and Economic Opportunity.
2349-This item (31) is exempt from the provisions of Section
2350-3-75.
2351-
2352-
2353-(32) Beginning July 1, 2022, breast pumps, breast pump
2354-collection and storage supplies, and breast pump kits. This
2355-item (32) is exempt from the provisions of Section 3-75. As
2356-used in this item (32):
2357-"Breast pump" means an electrically controlled or
2358-manually controlled pump device designed or marketed to be
2359-used to express milk from a human breast during lactation,
2360-including the pump device and any battery, AC adapter, or
2361-other power supply unit that is used to power the pump
2362-device and is packaged and sold with the pump device at the
2363-time of sale.
2364-"Breast pump collection and storage supplies" means
2365-items of tangible personal property designed or marketed
2366-to be used in conjunction with a breast pump to collect
2367-milk expressed from a human breast and to store collected
2368-milk until it is ready for consumption.
2369-"Breast pump collection and storage supplies"
2370-includes, but is not limited to: breast shields and breast
2371-shield connectors; breast pump tubes and tubing adapters;
2372-breast pump valves and membranes; backflow protectors and
2373-backflow protector adaptors; bottles and bottle caps
2374-specific to the operation of the breast pump; and breast
2375-milk storage bags.
2376-"Breast pump collection and storage supplies" does not
2377-include: (1) bottles and bottle caps not specific to the
2378-operation of the breast pump; (2) breast pump travel bags
2379-
2380-
2381-and other similar carrying accessories, including ice
2382-packs, labels, and other similar products; (3) breast pump
2383-cleaning supplies; (4) nursing bras, bra pads, breast
2384-shells, and other similar products; and (5) creams,
2385-ointments, and other similar products that relieve
2386-breastfeeding-related symptoms or conditions of the
2387-breasts or nipples, unless sold as part of a breast pump
2388-kit that is pre-packaged by the breast pump manufacturer
2389-or distributor.
2390-"Breast pump kit" means a kit that: (1) contains no
2391-more than a breast pump, breast pump collection and
2392-storage supplies, a rechargeable battery for operating the
2393-breast pump, a breastmilk cooler, bottle stands, ice
2394-packs, and a breast pump carrying case; and (2) is
2395-pre-packaged as a breast pump kit by the breast pump
2396-manufacturer or distributor.
2397-(33) Tangible personal property sold by or on behalf of
2398-the State Treasurer pursuant to the Revised Uniform Unclaimed
2399-Property Act. This item (33) is exempt from the provisions of
2400-Section 3-75.
2401-(34) Beginning on January 1, 2024, tangible personal
2402-property purchased by an active duty member of the armed
2403-forces of the United States who presents valid military
2404-identification and purchases the property using a form of
2405-payment where the federal government is the payor. The member
2406-of the armed forces must complete, at the point of sale, a form
2407-
2408-
2409-prescribed by the Department of Revenue documenting that the
2410-transaction is eligible for the exemption under this
2411-paragraph. Retailers must keep the form as documentation of
2412-the exemption in their records for a period of not less than 6
2413-years. "Armed forces of the United States" means the United
2414-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
2415-This paragraph is exempt from the provisions of Section 3-75.
2416-(35) Beginning July 1, 2024, home-delivered meals provided
2417-to Medicare or Medicaid recipients when payment is made by an
2418-intermediary, such as a Medicare Administrative Contractor, a
2419-Managed Care Organization, or a Medicare Advantage
2420-Organization, pursuant to a government contract. This
2421-paragraph (35) is exempt from the provisions of Section 3-75.
2422-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2423-Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2424-75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2425-Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
2426-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2427-revised 9-14-23.)
2428-Section 15. The Service Occupation Tax Act is amended by
2429-changing Section 3-5 as follows:
2430-(35 ILCS 115/3-5)
2431-(Text of Section before amendment by P.A. 103-384)
2432-Sec. 3-5. Exemptions. The following tangible personal
2433-
2434-
2435-property is exempt from the tax imposed by this Act:
2436-(1) Personal property sold by a corporation, society,
2437-association, foundation, institution, or organization, other
2438-than a limited liability company, that is organized and
2439-operated as a not-for-profit service enterprise for the
2440-benefit of persons 65 years of age or older if the personal
2441-property was not purchased by the enterprise for the purpose
2442-of resale by the enterprise.
2443-(2) Personal property purchased by a not-for-profit
2444-Illinois county fair association for use in conducting,
2445-operating, or promoting the county fair.
2446-(3) Personal property purchased by any not-for-profit arts
2447-or cultural organization that establishes, by proof required
2448-by the Department by rule, that it has received an exemption
2449-under Section 501(c)(3) of the Internal Revenue Code and that
2450-is organized and operated primarily for the presentation or
2451-support of arts or cultural programming, activities, or
2452-services. These organizations include, but are not limited to,
2453-music and dramatic arts organizations such as symphony
2454-orchestras and theatrical groups, arts and cultural service
2455-organizations, local arts councils, visual arts organizations,
2456-and media arts organizations. On and after July 1, 2001 (the
2457-effective date of Public Act 92-35), however, an entity
2458-otherwise eligible for this exemption shall not make tax-free
2459-purchases unless it has an active identification number issued
2460-by the Department.
2461-
2462-
2463-(4) Legal tender, currency, medallions, or gold or silver
2464-coinage issued by the State of Illinois, the government of the
2465-United States of America, or the government of any foreign
2466-country, and bullion.
2467-(5) Until July 1, 2003 and beginning again on September 1,
2468-2004 through August 30, 2014, graphic arts machinery and
2469-equipment, including repair and replacement parts, both new
2470-and used, and including that manufactured on special order or
2471-purchased for lease, certified by the purchaser to be used
2472-primarily for graphic arts production. Equipment includes
2473-chemicals or chemicals acting as catalysts but only if the
2474-chemicals or chemicals acting as catalysts effect a direct and
2475-immediate change upon a graphic arts product. Beginning on
2476-July 1, 2017, graphic arts machinery and equipment is included
2477-in the manufacturing and assembling machinery and equipment
2478-exemption under Section 2 of this Act.
2479-(6) Personal property sold by a teacher-sponsored student
2480-organization affiliated with an elementary or secondary school
2481-located in Illinois.
2482-(7) Farm machinery and equipment, both new and used,
2483-including that manufactured on special order, certified by the
2484-purchaser to be used primarily for production agriculture or
2485-State or federal agricultural programs, including individual
2486-replacement parts for the machinery and equipment, including
2487-machinery and equipment purchased for lease, and including
2488-implements of husbandry defined in Section 1-130 of the
2489-
2490-
2491-Illinois Vehicle Code, farm machinery and agricultural
2492-chemical and fertilizer spreaders, and nurse wagons required
2493-to be registered under Section 3-809 of the Illinois Vehicle
2494-Code, but excluding other motor vehicles required to be
2495-registered under the Illinois Vehicle Code. Horticultural
2496-polyhouses or hoop houses used for propagating, growing, or
2497-overwintering plants shall be considered farm machinery and
2498-equipment under this item (7). Agricultural chemical tender
2499-tanks and dry boxes shall include units sold separately from a
2500-motor vehicle required to be licensed and units sold mounted
2501-on a motor vehicle required to be licensed if the selling price
2502-of the tender is separately stated.
2503-Farm machinery and equipment shall include precision
2504-farming equipment that is installed or purchased to be
2505-installed on farm machinery and equipment, including, but not
2506-limited to, tractors, harvesters, sprayers, planters, seeders,
2507-or spreaders. Precision farming equipment includes, but is not
2508-limited to, soil testing sensors, computers, monitors,
2509-software, global positioning and mapping systems, and other
2510-such equipment.
2511-Farm machinery and equipment also includes computers,
2512-sensors, software, and related equipment used primarily in the
2513-computer-assisted operation of production agriculture
2514-facilities, equipment, and activities such as, but not limited
2515-to, the collection, monitoring, and correlation of animal and
2516-crop data for the purpose of formulating animal diets and
2517-
2518-
2519-agricultural chemicals.
2520-Beginning on January 1, 2024, farm machinery and equipment
2521-also includes electrical power generation equipment used
2522-primarily for production agriculture.
2523-This item (7) is exempt from the provisions of Section
2524-3-55.
2525-(8) Until June 30, 2013, fuel and petroleum products sold
2526-to or used by an air common carrier, certified by the carrier
2527-to be used for consumption, shipment, or storage in the
2528-conduct of its business as an air common carrier, for a flight
2529-destined for or returning from a location or locations outside
2530-the United States without regard to previous or subsequent
2531-domestic stopovers.
2532-Beginning July 1, 2013, fuel and petroleum products sold
2533-to or used by an air carrier, certified by the carrier to be
2534-used for consumption, shipment, or storage in the conduct of
2535-its business as an air common carrier, for a flight that (i) is
2536-engaged in foreign trade or is engaged in trade between the
2537-United States and any of its possessions and (ii) transports
2538-at least one individual or package for hire from the city of
2539-origination to the city of final destination on the same
2540-aircraft, without regard to a change in the flight number of
2541-that aircraft.
2542-(9) Proceeds of mandatory service charges separately
2543-stated on customers' bills for the purchase and consumption of
2544-food and beverages, to the extent that the proceeds of the
2545-
2546-
2547-service charge are in fact turned over as tips or as a
2548-substitute for tips to the employees who participate directly
2549-in preparing, serving, hosting or cleaning up the food or
2550-beverage function with respect to which the service charge is
2551-imposed.
2552-(10) Until July 1, 2003, oil field exploration, drilling,
2553-and production equipment, including (i) rigs and parts of
2554-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2555-pipe and tubular goods, including casing and drill strings,
2556-(iii) pumps and pump-jack units, (iv) storage tanks and flow
2557-lines, (v) any individual replacement part for oil field
2558-exploration, drilling, and production equipment, and (vi)
2559-machinery and equipment purchased for lease; but excluding
2560-motor vehicles required to be registered under the Illinois
2561-Vehicle Code.
2562-(11) Photoprocessing machinery and equipment, including
2563-repair and replacement parts, both new and used, including
2564-that manufactured on special order, certified by the purchaser
2565-to be used primarily for photoprocessing, and including
2566-photoprocessing machinery and equipment purchased for lease.
2567-(12) Until July 1, 2028, coal and aggregate exploration,
2568-mining, off-highway hauling, processing, maintenance, and
2569-reclamation equipment, including replacement parts and
2570-equipment, and including equipment purchased for lease, but
2571-excluding motor vehicles required to be registered under the
2572-Illinois Vehicle Code. The changes made to this Section by
2573-
2574-
2575-Public Act 97-767 apply on and after July 1, 2003, but no claim
2576-for credit or refund is allowed on or after August 16, 2013
2577-(the effective date of Public Act 98-456) for such taxes paid
2578-during the period beginning July 1, 2003 and ending on August
2579-16, 2013 (the effective date of Public Act 98-456).
2580-(13) Beginning January 1, 1992 and through June 30, 2016,
2581-food for human consumption that is to be consumed off the
2582-premises where it is sold (other than alcoholic beverages,
2583-soft drinks and food that has been prepared for immediate
2584-consumption) and prescription and non-prescription medicines,
2585-drugs, medical appliances, and insulin, urine testing
2586-materials, syringes, and needles used by diabetics, for human
2587-use, when purchased for use by a person receiving medical
2588-assistance under Article V of the Illinois Public Aid Code who
2589-resides in a licensed long-term care facility, as defined in
2590-the Nursing Home Care Act, or in a licensed facility as defined
2591-in the ID/DD Community Care Act, the MC/DD Act, or the
2592-Specialized Mental Health Rehabilitation Act of 2013.
2593-(14) Semen used for artificial insemination of livestock
2594-for direct agricultural production.
2595-(15) Horses, or interests in horses, registered with and
2596-meeting the requirements of any of the Arabian Horse Club
2597-Registry of America, Appaloosa Horse Club, American Quarter
2598-Horse Association, United States Trotting Association, or
2599-Jockey Club, as appropriate, used for purposes of breeding or
2600-racing for prizes. This item (15) is exempt from the
2601-
2602-
2603-provisions of Section 3-55, and the exemption provided for
2604-under this item (15) applies for all periods beginning May 30,
2605-1995, but no claim for credit or refund is allowed on or after
2606-January 1, 2008 (the effective date of Public Act 95-88) for
2607-such taxes paid during the period beginning May 30, 2000 and
2608-ending on January 1, 2008 (the effective date of Public Act
2609-95-88).
2610-(16) Computers and communications equipment utilized for
2611-any hospital purpose and equipment used in the diagnosis,
2612-analysis, or treatment of hospital patients sold to a lessor
2613-who leases the equipment, under a lease of one year or longer
2614-executed or in effect at the time of the purchase, to a
2615-hospital that has been issued an active tax exemption
2616-identification number by the Department under Section 1g of
2617-the Retailers' Occupation Tax Act.
2618-(17) Personal property sold to a lessor who leases the
2619-property, under a lease of one year or longer executed or in
2620-effect at the time of the purchase, to a governmental body that
2621-has been issued an active tax exemption identification number
2622-by the Department under Section 1g of the Retailers'
2623-Occupation Tax Act.
2624-(18) Beginning with taxable years ending on or after
2625-December 31, 1995 and ending with taxable years ending on or
2626-before December 31, 2004, personal property that is donated
2627-for disaster relief to be used in a State or federally declared
2628-disaster area in Illinois or bordering Illinois by a
2629-
2630-
2631-manufacturer or retailer that is registered in this State to a
2632-corporation, society, association, foundation, or institution
2633-that has been issued a sales tax exemption identification
2634-number by the Department that assists victims of the disaster
2635-who reside within the declared disaster area.
2636-(19) Beginning with taxable years ending on or after
2637-December 31, 1995 and ending with taxable years ending on or
2638-before December 31, 2004, personal property that is used in
2639-the performance of infrastructure repairs in this State,
2640-including, but not limited to, municipal roads and streets,
2641-access roads, bridges, sidewalks, waste disposal systems,
2642-water and sewer line extensions, water distribution and
2643-purification facilities, storm water drainage and retention
2644-facilities, and sewage treatment facilities, resulting from a
2645-State or federally declared disaster in Illinois or bordering
2646-Illinois when such repairs are initiated on facilities located
2647-in the declared disaster area within 6 months after the
2648-disaster.
2649-(20) Beginning July 1, 1999, game or game birds sold at a
2650-"game breeding and hunting preserve area" as that term is used
2651-in the Wildlife Code. This paragraph is exempt from the
2652-provisions of Section 3-55.
2653-(21) A motor vehicle, as that term is defined in Section
2654-1-146 of the Illinois Vehicle Code, that is donated to a
2655-corporation, limited liability company, society, association,
2656-foundation, or institution that is determined by the
2657-
2658-
2659-Department to be organized and operated exclusively for
2660-educational purposes. For purposes of this exemption, "a
2661-corporation, limited liability company, society, association,
2662-foundation, or institution organized and operated exclusively
2663-for educational purposes" means all tax-supported public
2664-schools, private schools that offer systematic instruction in
2665-useful branches of learning by methods common to public
2666-schools and that compare favorably in their scope and
2667-intensity with the course of study presented in tax-supported
2668-schools, and vocational or technical schools or institutes
2669-organized and operated exclusively to provide a course of
2670-study of not less than 6 weeks duration and designed to prepare
2671-individuals to follow a trade or to pursue a manual,
2672-technical, mechanical, industrial, business, or commercial
2673-occupation.
2674-(22) Beginning January 1, 2000, personal property,
2675-including food, purchased through fundraising events for the
2676-benefit of a public or private elementary or secondary school,
2677-a group of those schools, or one or more school districts if
2678-the events are sponsored by an entity recognized by the school
2679-district that consists primarily of volunteers and includes
2680-parents and teachers of the school children. This paragraph
2681-does not apply to fundraising events (i) for the benefit of
2682-private home instruction or (ii) for which the fundraising
2683-entity purchases the personal property sold at the events from
2684-another individual or entity that sold the property for the
2685-
2686-
2687-purpose of resale by the fundraising entity and that profits
2688-from the sale to the fundraising entity. This paragraph is
2689-exempt from the provisions of Section 3-55.
2690-(23) Beginning January 1, 2000 and through December 31,
2691-2001, new or used automatic vending machines that prepare and
2692-serve hot food and beverages, including coffee, soup, and
2693-other items, and replacement parts for these machines.
2694-Beginning January 1, 2002 and through June 30, 2003, machines
2695-and parts for machines used in commercial, coin-operated
2696-amusement and vending business if a use or occupation tax is
2697-paid on the gross receipts derived from the use of the
2698-commercial, coin-operated amusement and vending machines. This
2699-paragraph is exempt from the provisions of Section 3-55.
2700-(24) Beginning on August 2, 2001 (the effective date of
2701-Public Act 92-227), computers and communications equipment
2702-utilized for any hospital purpose and equipment used in the
2703-diagnosis, analysis, or treatment of hospital patients sold to
2704-a lessor who leases the equipment, under a lease of one year or
2705-longer executed or in effect at the time of the purchase, to a
2706-hospital that has been issued an active tax exemption
2707-identification number by the Department under Section 1g of
2708-the Retailers' Occupation Tax Act. This paragraph is exempt
2709-from the provisions of Section 3-55.
2710-(25) Beginning on August 2, 2001 (the effective date of
2711-Public Act 92-227), personal property sold to a lessor who
2712-leases the property, under a lease of one year or longer
2713-
2714-
2715-executed or in effect at the time of the purchase, to a
2716-governmental body that has been issued an active tax exemption
2717-identification number by the Department under Section 1g of
2718-the Retailers' Occupation Tax Act. This paragraph is exempt
2719-from the provisions of Section 3-55.
2720-(26) Beginning on January 1, 2002 and through June 30,
2721-2016, tangible personal property purchased from an Illinois
2722-retailer by a taxpayer engaged in centralized purchasing
2723-activities in Illinois who will, upon receipt of the property
2724-in Illinois, temporarily store the property in Illinois (i)
2725-for the purpose of subsequently transporting it outside this
2726-State for use or consumption thereafter solely outside this
2727-State or (ii) for the purpose of being processed, fabricated,
2728-or manufactured into, attached to, or incorporated into other
2729-tangible personal property to be transported outside this
2730-State and thereafter used or consumed solely outside this
2731-State. The Director of Revenue shall, pursuant to rules
2732-adopted in accordance with the Illinois Administrative
2733-Procedure Act, issue a permit to any taxpayer in good standing
2734-with the Department who is eligible for the exemption under
2735-this paragraph (26). The permit issued under this paragraph
2736-(26) shall authorize the holder, to the extent and in the
2737-manner specified in the rules adopted under this Act, to
2738-purchase tangible personal property from a retailer exempt
2739-from the taxes imposed by this Act. Taxpayers shall maintain
2740-all necessary books and records to substantiate the use and
2741-
2742-
2743-consumption of all such tangible personal property outside of
2744-the State of Illinois.
2745-(27) Beginning January 1, 2008, tangible personal property
2746-used in the construction or maintenance of a community water
2747-supply, as defined under Section 3.145 of the Environmental
2748-Protection Act, that is operated by a not-for-profit
2749-corporation that holds a valid water supply permit issued
2750-under Title IV of the Environmental Protection Act. This
2751-paragraph is exempt from the provisions of Section 3-55.
2752-(28) Tangible personal property sold to a
2753-public-facilities corporation, as described in Section
2754-11-65-10 of the Illinois Municipal Code, for purposes of
2755-constructing or furnishing a municipal convention hall, but
2756-only if the legal title to the municipal convention hall is
2757-transferred to the municipality without any further
2758-consideration by or on behalf of the municipality at the time
2759-of the completion of the municipal convention hall or upon the
2760-retirement or redemption of any bonds or other debt
2761-instruments issued by the public-facilities corporation in
2762-connection with the development of the municipal convention
2763-hall. This exemption includes existing public-facilities
2764-corporations as provided in Section 11-65-25 of the Illinois
2765-Municipal Code. This paragraph is exempt from the provisions
2766-of Section 3-55.
2767-(29) Beginning January 1, 2010 and continuing through
2768-December 31, 2029, materials, parts, equipment, components,
2769-
2770-
2771-and furnishings incorporated into or upon an aircraft as part
2772-of the modification, refurbishment, completion, replacement,
2773-repair, or maintenance of the aircraft. This exemption
2774-includes consumable supplies used in the modification,
2775-refurbishment, completion, replacement, repair, and
2776-maintenance of aircraft. However, until January 1, 2024, this
2777-exemption excludes any materials, parts, equipment,
2778-components, and consumable supplies used in the modification,
2779-replacement, repair, and maintenance of aircraft engines or
2780-power plants, whether such engines or power plants are
2781-installed or uninstalled upon any such aircraft. "Consumable
2782-supplies" include, but are not limited to, adhesive, tape,
2783-sandpaper, general purpose lubricants, cleaning solution,
2784-latex gloves, and protective films.
2785-Beginning January 1, 2010 and continuing through December
2786-31, 2023, this exemption applies only to the transfer of
2787-qualifying tangible personal property incident to the
2788-modification, refurbishment, completion, replacement, repair,
2789-or maintenance of an aircraft by persons who (i) hold an Air
2790-Agency Certificate and are empowered to operate an approved
2791-repair station by the Federal Aviation Administration, (ii)
2792-have a Class IV Rating, and (iii) conduct operations in
2793-accordance with Part 145 of the Federal Aviation Regulations.
2794-The exemption does not include aircraft operated by a
2795-commercial air carrier providing scheduled passenger air
2796-service pursuant to authority issued under Part 121 or Part
2797-
2798-
2799-129 of the Federal Aviation Regulations. From January 1, 2024
2800-through December 31, 2029, this exemption applies only to the
2801-use of qualifying tangible personal property by: (A) persons
2802-who modify, refurbish, complete, repair, replace, or maintain
2803-aircraft and who (i) hold an Air Agency Certificate and are
2804-empowered to operate an approved repair station by the Federal
2805-Aviation Administration, (ii) have a Class IV Rating, and
2806-(iii) conduct operations in accordance with Part 145 of the
2807-Federal Aviation Regulations; and (B) persons who engage in
2808-the modification, replacement, repair, and maintenance of
2809-aircraft engines or power plants without regard to whether or
2810-not those persons meet the qualifications of item (A).
2811-The changes made to this paragraph (29) by Public Act
2812-98-534 are declarative of existing law. It is the intent of the
2813-General Assembly that the exemption under this paragraph (29)
2814-applies continuously from January 1, 2010 through December 31,
2815-2024; however, no claim for credit or refund is allowed for
2816-taxes paid as a result of the disallowance of this exemption on
2817-or after January 1, 2015 and prior to February 5, 2020 (the
2818-effective date of Public Act 101-629).
2819-(30) Beginning January 1, 2017 and through December 31,
2820-2026, menstrual pads, tampons, and menstrual cups.
2821-(31) Tangible personal property transferred to a purchaser
2822-who is exempt from tax by operation of federal law. This
2823-paragraph is exempt from the provisions of Section 3-55.
2824-(32) Qualified tangible personal property used in the
2825-
2826-
2827-construction or operation of a data center that has been
2828-granted a certificate of exemption by the Department of
2829-Commerce and Economic Opportunity, whether that tangible
2830-personal property is purchased by the owner, operator, or
2831-tenant of the data center or by a contractor or subcontractor
2832-of the owner, operator, or tenant. Data centers that would
2833-have qualified for a certificate of exemption prior to January
2834-1, 2020 had Public Act 101-31 been in effect, may apply for and
2835-obtain an exemption for subsequent purchases of computer
2836-equipment or enabling software purchased or leased to upgrade,
2837-supplement, or replace computer equipment or enabling software
2838-purchased or leased in the original investment that would have
2839-qualified.
2840-The Department of Commerce and Economic Opportunity shall
2841-grant a certificate of exemption under this item (32) to
2842-qualified data centers as defined by Section 605-1025 of the
2843-Department of Commerce and Economic Opportunity Law of the
2844-Civil Administrative Code of Illinois.
2845-For the purposes of this item (32):
2846-"Data center" means a building or a series of
2847-buildings rehabilitated or constructed to house working
2848-servers in one physical location or multiple sites within
2849-the State of Illinois.
2850-"Qualified tangible personal property" means:
2851-electrical systems and equipment; climate control and
2852-chilling equipment and systems; mechanical systems and
2853-
2854-
2855-equipment; monitoring and secure systems; emergency
2856-generators; hardware; computers; servers; data storage
2857-devices; network connectivity equipment; racks; cabinets;
2858-telecommunications cabling infrastructure; raised floor
2859-systems; peripheral components or systems; software;
2860-mechanical, electrical, or plumbing systems; battery
2861-systems; cooling systems and towers; temperature control
2862-systems; other cabling; and other data center
2863-infrastructure equipment and systems necessary to operate
2864-qualified tangible personal property, including fixtures;
2865-and component parts of any of the foregoing, including
2866-installation, maintenance, repair, refurbishment, and
2867-replacement of qualified tangible personal property to
2868-generate, transform, transmit, distribute, or manage
2869-electricity necessary to operate qualified tangible
2870-personal property; and all other tangible personal
2871-property that is essential to the operations of a computer
2872-data center. The term "qualified tangible personal
2873-property" also includes building materials physically
2874-incorporated into in to the qualifying data center. To
2875-document the exemption allowed under this Section, the
2876-retailer must obtain from the purchaser a copy of the
2877-certificate of eligibility issued by the Department of
2878-Commerce and Economic Opportunity.
2879-This item (32) is exempt from the provisions of Section
2880-3-55.
2881-
2882-
2883-(33) Beginning July 1, 2022, breast pumps, breast pump
2884-collection and storage supplies, and breast pump kits. This
2885-item (33) is exempt from the provisions of Section 3-55. As
2886-used in this item (33):
2887-"Breast pump" means an electrically controlled or
2888-manually controlled pump device designed or marketed to be
2889-used to express milk from a human breast during lactation,
2890-including the pump device and any battery, AC adapter, or
2891-other power supply unit that is used to power the pump
2892-device and is packaged and sold with the pump device at the
2893-time of sale.
2894-"Breast pump collection and storage supplies" means
2895-items of tangible personal property designed or marketed
2896-to be used in conjunction with a breast pump to collect
2897-milk expressed from a human breast and to store collected
2898-milk until it is ready for consumption.
2899-"Breast pump collection and storage supplies"
2900-includes, but is not limited to: breast shields and breast
2901-shield connectors; breast pump tubes and tubing adapters;
2902-breast pump valves and membranes; backflow protectors and
2903-backflow protector adaptors; bottles and bottle caps
2904-specific to the operation of the breast pump; and breast
2905-milk storage bags.
2906-"Breast pump collection and storage supplies" does not
2907-include: (1) bottles and bottle caps not specific to the
2908-operation of the breast pump; (2) breast pump travel bags
2909-
2910-
2911-and other similar carrying accessories, including ice
2912-packs, labels, and other similar products; (3) breast pump
2913-cleaning supplies; (4) nursing bras, bra pads, breast
2914-shells, and other similar products; and (5) creams,
2915-ointments, and other similar products that relieve
2916-breastfeeding-related symptoms or conditions of the
2917-breasts or nipples, unless sold as part of a breast pump
2918-kit that is pre-packaged by the breast pump manufacturer
2919-or distributor.
2920-"Breast pump kit" means a kit that: (1) contains no
2921-more than a breast pump, breast pump collection and
2922-storage supplies, a rechargeable battery for operating the
2923-breast pump, a breastmilk cooler, bottle stands, ice
2924-packs, and a breast pump carrying case; and (2) is
2925-pre-packaged as a breast pump kit by the breast pump
2926-manufacturer or distributor.
2927-(34) Tangible personal property sold by or on behalf of
2928-the State Treasurer pursuant to the Revised Uniform Unclaimed
2929-Property Act. This item (34) is exempt from the provisions of
2930-Section 3-55.
2931-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2932-Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2933-75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2934-Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2935-eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-19-23.)
2936-
2937-
2938-(Text of Section after amendment by P.A. 103-384)
2939-Sec. 3-5. Exemptions. The following tangible personal
2940-property is exempt from the tax imposed by this Act:
2941-(1) Personal property sold by a corporation, society,
2942-association, foundation, institution, or organization, other
2943-than a limited liability company, that is organized and
2944-operated as a not-for-profit service enterprise for the
2945-benefit of persons 65 years of age or older if the personal
2946-property was not purchased by the enterprise for the purpose
2947-of resale by the enterprise.
2948-(2) Personal property purchased by a not-for-profit
2949-Illinois county fair association for use in conducting,
2950-operating, or promoting the county fair.
2951-(3) Personal property purchased by any not-for-profit arts
2952-or cultural organization that establishes, by proof required
2953-by the Department by rule, that it has received an exemption
2954-under Section 501(c)(3) of the Internal Revenue Code and that
2955-is organized and operated primarily for the presentation or
2956-support of arts or cultural programming, activities, or
2957-services. These organizations include, but are not limited to,
2958-music and dramatic arts organizations such as symphony
2959-orchestras and theatrical groups, arts and cultural service
2960-organizations, local arts councils, visual arts organizations,
2961-and media arts organizations. On and after July 1, 2001 (the
2962-effective date of Public Act 92-35), however, an entity
2963-otherwise eligible for this exemption shall not make tax-free
2964-
2965-
2966-purchases unless it has an active identification number issued
2967-by the Department.
2968-(4) Legal tender, currency, medallions, or gold or silver
2969-coinage issued by the State of Illinois, the government of the
2970-United States of America, or the government of any foreign
2971-country, and bullion.
2972-(5) Until July 1, 2003 and beginning again on September 1,
2973-2004 through August 30, 2014, graphic arts machinery and
2974-equipment, including repair and replacement parts, both new
2975-and used, and including that manufactured on special order or
2976-purchased for lease, certified by the purchaser to be used
2977-primarily for graphic arts production. Equipment includes
2978-chemicals or chemicals acting as catalysts but only if the
2979-chemicals or chemicals acting as catalysts effect a direct and
2980-immediate change upon a graphic arts product. Beginning on
2981-July 1, 2017, graphic arts machinery and equipment is included
2982-in the manufacturing and assembling machinery and equipment
2983-exemption under Section 2 of this Act.
2984-(6) Personal property sold by a teacher-sponsored student
2985-organization affiliated with an elementary or secondary school
2986-located in Illinois.
2987-(7) Farm machinery and equipment, both new and used,
2988-including that manufactured on special order, certified by the
2989-purchaser to be used primarily for production agriculture or
2990-State or federal agricultural programs, including individual
2991-replacement parts for the machinery and equipment, including
2992-
2993-
2994-machinery and equipment purchased for lease, and including
2995-implements of husbandry defined in Section 1-130 of the
2996-Illinois Vehicle Code, farm machinery and agricultural
2997-chemical and fertilizer spreaders, and nurse wagons required
2998-to be registered under Section 3-809 of the Illinois Vehicle
2999-Code, but excluding other motor vehicles required to be
3000-registered under the Illinois Vehicle Code. Horticultural
3001-polyhouses or hoop houses used for propagating, growing, or
3002-overwintering plants shall be considered farm machinery and
3003-equipment under this item (7). Agricultural chemical tender
3004-tanks and dry boxes shall include units sold separately from a
3005-motor vehicle required to be licensed and units sold mounted
3006-on a motor vehicle required to be licensed if the selling price
3007-of the tender is separately stated.
3008-Farm machinery and equipment shall include precision
3009-farming equipment that is installed or purchased to be
3010-installed on farm machinery and equipment, including, but not
3011-limited to, tractors, harvesters, sprayers, planters, seeders,
3012-or spreaders. Precision farming equipment includes, but is not
3013-limited to, soil testing sensors, computers, monitors,
3014-software, global positioning and mapping systems, and other
3015-such equipment.
3016-Farm machinery and equipment also includes computers,
3017-sensors, software, and related equipment used primarily in the
3018-computer-assisted operation of production agriculture
3019-facilities, equipment, and activities such as, but not limited
3020-
3021-
3022-to, the collection, monitoring, and correlation of animal and
3023-crop data for the purpose of formulating animal diets and
3024-agricultural chemicals.
3025-Beginning on January 1, 2024, farm machinery and equipment
3026-also includes electrical power generation equipment used
3027-primarily for production agriculture.
3028-This item (7) is exempt from the provisions of Section
3029-3-55.
3030-(8) Until June 30, 2013, fuel and petroleum products sold
3031-to or used by an air common carrier, certified by the carrier
3032-to be used for consumption, shipment, or storage in the
3033-conduct of its business as an air common carrier, for a flight
3034-destined for or returning from a location or locations outside
3035-the United States without regard to previous or subsequent
3036-domestic stopovers.
3037-Beginning July 1, 2013, fuel and petroleum products sold
3038-to or used by an air carrier, certified by the carrier to be
3039-used for consumption, shipment, or storage in the conduct of
3040-its business as an air common carrier, for a flight that (i) is
3041-engaged in foreign trade or is engaged in trade between the
3042-United States and any of its possessions and (ii) transports
3043-at least one individual or package for hire from the city of
3044-origination to the city of final destination on the same
3045-aircraft, without regard to a change in the flight number of
3046-that aircraft.
3047-(9) Proceeds of mandatory service charges separately
3048-
3049-
3050-stated on customers' bills for the purchase and consumption of
3051-food and beverages, to the extent that the proceeds of the
3052-service charge are in fact turned over as tips or as a
3053-substitute for tips to the employees who participate directly
3054-in preparing, serving, hosting or cleaning up the food or
3055-beverage function with respect to which the service charge is
3056-imposed.
3057-(10) Until July 1, 2003, oil field exploration, drilling,
3058-and production equipment, including (i) rigs and parts of
3059-rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3060-pipe and tubular goods, including casing and drill strings,
3061-(iii) pumps and pump-jack units, (iv) storage tanks and flow
3062-lines, (v) any individual replacement part for oil field
3063-exploration, drilling, and production equipment, and (vi)
3064-machinery and equipment purchased for lease; but excluding
3065-motor vehicles required to be registered under the Illinois
3066-Vehicle Code.
3067-(11) Photoprocessing machinery and equipment, including
3068-repair and replacement parts, both new and used, including
3069-that manufactured on special order, certified by the purchaser
3070-to be used primarily for photoprocessing, and including
3071-photoprocessing machinery and equipment purchased for lease.
3072-(12) Until July 1, 2028, coal and aggregate exploration,
3073-mining, off-highway hauling, processing, maintenance, and
3074-reclamation equipment, including replacement parts and
3075-equipment, and including equipment purchased for lease, but
3076-
3077-
3078-excluding motor vehicles required to be registered under the
3079-Illinois Vehicle Code. The changes made to this Section by
3080-Public Act 97-767 apply on and after July 1, 2003, but no claim
3081-for credit or refund is allowed on or after August 16, 2013
3082-(the effective date of Public Act 98-456) for such taxes paid
3083-during the period beginning July 1, 2003 and ending on August
3084-16, 2013 (the effective date of Public Act 98-456).
3085-(13) Beginning January 1, 1992 and through June 30, 2016,
3086-food for human consumption that is to be consumed off the
3087-premises where it is sold (other than alcoholic beverages,
3088-soft drinks and food that has been prepared for immediate
3089-consumption) and prescription and non-prescription medicines,
3090-drugs, medical appliances, and insulin, urine testing
3091-materials, syringes, and needles used by diabetics, for human
3092-use, when purchased for use by a person receiving medical
3093-assistance under Article V of the Illinois Public Aid Code who
3094-resides in a licensed long-term care facility, as defined in
3095-the Nursing Home Care Act, or in a licensed facility as defined
3096-in the ID/DD Community Care Act, the MC/DD Act, or the
3097-Specialized Mental Health Rehabilitation Act of 2013.
3098-(14) Semen used for artificial insemination of livestock
3099-for direct agricultural production.
3100-(15) Horses, or interests in horses, registered with and
3101-meeting the requirements of any of the Arabian Horse Club
3102-Registry of America, Appaloosa Horse Club, American Quarter
3103-Horse Association, United States Trotting Association, or
3104-
3105-
3106-Jockey Club, as appropriate, used for purposes of breeding or
3107-racing for prizes. This item (15) is exempt from the
3108-provisions of Section 3-55, and the exemption provided for
3109-under this item (15) applies for all periods beginning May 30,
3110-1995, but no claim for credit or refund is allowed on or after
3111-January 1, 2008 (the effective date of Public Act 95-88) for
3112-such taxes paid during the period beginning May 30, 2000 and
3113-ending on January 1, 2008 (the effective date of Public Act
3114-95-88).
3115-(16) Computers and communications equipment utilized for
3116-any hospital purpose and equipment used in the diagnosis,
3117-analysis, or treatment of hospital patients sold to a lessor
3118-who leases the equipment, under a lease of one year or longer
3119-executed or in effect at the time of the purchase, to a
3120-hospital that has been issued an active tax exemption
3121-identification number by the Department under Section 1g of
3122-the Retailers' Occupation Tax Act.
3123-(17) Personal property sold to a lessor who leases the
3124-property, under a lease of one year or longer executed or in
3125-effect at the time of the purchase, to a governmental body that
3126-has been issued an active tax exemption identification number
3127-by the Department under Section 1g of the Retailers'
3128-Occupation Tax Act.
3129-(18) Beginning with taxable years ending on or after
3130-December 31, 1995 and ending with taxable years ending on or
3131-before December 31, 2004, personal property that is donated
3132-
3133-
3134-for disaster relief to be used in a State or federally declared
3135-disaster area in Illinois or bordering Illinois by a
3136-manufacturer or retailer that is registered in this State to a
3137-corporation, society, association, foundation, or institution
3138-that has been issued a sales tax exemption identification
3139-number by the Department that assists victims of the disaster
3140-who reside within the declared disaster area.
3141-(19) Beginning with taxable years ending on or after
3142-December 31, 1995 and ending with taxable years ending on or
3143-before December 31, 2004, personal property that is used in
3144-the performance of infrastructure repairs in this State,
3145-including, but not limited to, municipal roads and streets,
3146-access roads, bridges, sidewalks, waste disposal systems,
3147-water and sewer line extensions, water distribution and
3148-purification facilities, storm water drainage and retention
3149-facilities, and sewage treatment facilities, resulting from a
3150-State or federally declared disaster in Illinois or bordering
3151-Illinois when such repairs are initiated on facilities located
3152-in the declared disaster area within 6 months after the
3153-disaster.
3154-(20) Beginning July 1, 1999, game or game birds sold at a
3155-"game breeding and hunting preserve area" as that term is used
3156-in the Wildlife Code. This paragraph is exempt from the
3157-provisions of Section 3-55.
3158-(21) A motor vehicle, as that term is defined in Section
3159-1-146 of the Illinois Vehicle Code, that is donated to a
3160-
3161-
3162-corporation, limited liability company, society, association,
3163-foundation, or institution that is determined by the
3164-Department to be organized and operated exclusively for
3165-educational purposes. For purposes of this exemption, "a
3166-corporation, limited liability company, society, association,
3167-foundation, or institution organized and operated exclusively
3168-for educational purposes" means all tax-supported public
3169-schools, private schools that offer systematic instruction in
3170-useful branches of learning by methods common to public
3171-schools and that compare favorably in their scope and
3172-intensity with the course of study presented in tax-supported
3173-schools, and vocational or technical schools or institutes
3174-organized and operated exclusively to provide a course of
3175-study of not less than 6 weeks duration and designed to prepare
3176-individuals to follow a trade or to pursue a manual,
3177-technical, mechanical, industrial, business, or commercial
3178-occupation.
3179-(22) Beginning January 1, 2000, personal property,
3180-including food, purchased through fundraising events for the
3181-benefit of a public or private elementary or secondary school,
3182-a group of those schools, or one or more school districts if
3183-the events are sponsored by an entity recognized by the school
3184-district that consists primarily of volunteers and includes
3185-parents and teachers of the school children. This paragraph
3186-does not apply to fundraising events (i) for the benefit of
3187-private home instruction or (ii) for which the fundraising
3188-
3189-
3190-entity purchases the personal property sold at the events from
3191-another individual or entity that sold the property for the
3192-purpose of resale by the fundraising entity and that profits
3193-from the sale to the fundraising entity. This paragraph is
3194-exempt from the provisions of Section 3-55.
3195-(23) Beginning January 1, 2000 and through December 31,
3196-2001, new or used automatic vending machines that prepare and
3197-serve hot food and beverages, including coffee, soup, and
3198-other items, and replacement parts for these machines.
3199-Beginning January 1, 2002 and through June 30, 2003, machines
3200-and parts for machines used in commercial, coin-operated
3201-amusement and vending business if a use or occupation tax is
3202-paid on the gross receipts derived from the use of the
3203-commercial, coin-operated amusement and vending machines. This
3204-paragraph is exempt from the provisions of Section 3-55.
3205-(24) Beginning on August 2, 2001 (the effective date of
3206-Public Act 92-227), computers and communications equipment
3207-utilized for any hospital purpose and equipment used in the
3208-diagnosis, analysis, or treatment of hospital patients sold to
3209-a lessor who leases the equipment, under a lease of one year or
3210-longer executed or in effect at the time of the purchase, to a
3211-hospital that has been issued an active tax exemption
3212-identification number by the Department under Section 1g of
3213-the Retailers' Occupation Tax Act. This paragraph is exempt
3214-from the provisions of Section 3-55.
3215-(25) Beginning on August 2, 2001 (the effective date of
3216-
3217-
3218-Public Act 92-227), personal property sold to a lessor who
3219-leases the property, under a lease of one year or longer
3220-executed or in effect at the time of the purchase, to a
3221-governmental body that has been issued an active tax exemption
3222-identification number by the Department under Section 1g of
3223-the Retailers' Occupation Tax Act. This paragraph is exempt
3224-from the provisions of Section 3-55.
3225-(26) Beginning on January 1, 2002 and through June 30,
3226-2016, tangible personal property purchased from an Illinois
3227-retailer by a taxpayer engaged in centralized purchasing
3228-activities in Illinois who will, upon receipt of the property
3229-in Illinois, temporarily store the property in Illinois (i)
3230-for the purpose of subsequently transporting it outside this
3231-State for use or consumption thereafter solely outside this
3232-State or (ii) for the purpose of being processed, fabricated,
3233-or manufactured into, attached to, or incorporated into other
3234-tangible personal property to be transported outside this
3235-State and thereafter used or consumed solely outside this
3236-State. The Director of Revenue shall, pursuant to rules
3237-adopted in accordance with the Illinois Administrative
3238-Procedure Act, issue a permit to any taxpayer in good standing
3239-with the Department who is eligible for the exemption under
3240-this paragraph (26). The permit issued under this paragraph
3241-(26) shall authorize the holder, to the extent and in the
3242-manner specified in the rules adopted under this Act, to
3243-purchase tangible personal property from a retailer exempt
3244-
3245-
3246-from the taxes imposed by this Act. Taxpayers shall maintain
3247-all necessary books and records to substantiate the use and
3248-consumption of all such tangible personal property outside of
3249-the State of Illinois.
3250-(27) Beginning January 1, 2008, tangible personal property
3251-used in the construction or maintenance of a community water
3252-supply, as defined under Section 3.145 of the Environmental
3253-Protection Act, that is operated by a not-for-profit
3254-corporation that holds a valid water supply permit issued
3255-under Title IV of the Environmental Protection Act. This
3256-paragraph is exempt from the provisions of Section 3-55.
3257-(28) Tangible personal property sold to a
3258-public-facilities corporation, as described in Section
3259-11-65-10 of the Illinois Municipal Code, for purposes of
3260-constructing or furnishing a municipal convention hall, but
3261-only if the legal title to the municipal convention hall is
3262-transferred to the municipality without any further
3263-consideration by or on behalf of the municipality at the time
3264-of the completion of the municipal convention hall or upon the
3265-retirement or redemption of any bonds or other debt
3266-instruments issued by the public-facilities corporation in
3267-connection with the development of the municipal convention
3268-hall. This exemption includes existing public-facilities
3269-corporations as provided in Section 11-65-25 of the Illinois
3270-Municipal Code. This paragraph is exempt from the provisions
3271-of Section 3-55.
3272-
3273-
3274-(29) Beginning January 1, 2010 and continuing through
3275-December 31, 2029, materials, parts, equipment, components,
3276-and furnishings incorporated into or upon an aircraft as part
3277-of the modification, refurbishment, completion, replacement,
3278-repair, or maintenance of the aircraft. This exemption
3279-includes consumable supplies used in the modification,
3280-refurbishment, completion, replacement, repair, and
3281-maintenance of aircraft. However, until January 1, 2024, this
3282-exemption excludes any materials, parts, equipment,
3283-components, and consumable supplies used in the modification,
3284-replacement, repair, and maintenance of aircraft engines or
3285-power plants, whether such engines or power plants are
3286-installed or uninstalled upon any such aircraft. "Consumable
3287-supplies" include, but are not limited to, adhesive, tape,
3288-sandpaper, general purpose lubricants, cleaning solution,
3289-latex gloves, and protective films.
3290-Beginning January 1, 2010 and continuing through December
3291-31, 2023, this exemption applies only to the transfer of
3292-qualifying tangible personal property incident to the
3293-modification, refurbishment, completion, replacement, repair,
3294-or maintenance of an aircraft by persons who (i) hold an Air
3295-Agency Certificate and are empowered to operate an approved
3296-repair station by the Federal Aviation Administration, (ii)
3297-have a Class IV Rating, and (iii) conduct operations in
3298-accordance with Part 145 of the Federal Aviation Regulations.
3299-The exemption does not include aircraft operated by a
3300-
3301-
3302-commercial air carrier providing scheduled passenger air
3303-service pursuant to authority issued under Part 121 or Part
3304-129 of the Federal Aviation Regulations. From January 1, 2024
3305-through December 31, 2029, this exemption applies only to the
3306-use of qualifying tangible personal property by: (A) persons
3307-who modify, refurbish, complete, repair, replace, or maintain
3308-aircraft and who (i) hold an Air Agency Certificate and are
3309-empowered to operate an approved repair station by the Federal
3310-Aviation Administration, (ii) have a Class IV Rating, and
3311-(iii) conduct operations in accordance with Part 145 of the
3312-Federal Aviation Regulations; and (B) persons who engage in
3313-the modification, replacement, repair, and maintenance of
3314-aircraft engines or power plants without regard to whether or
3315-not those persons meet the qualifications of item (A).
3316-The changes made to this paragraph (29) by Public Act
3317-98-534 are declarative of existing law. It is the intent of the
3318-General Assembly that the exemption under this paragraph (29)
3319-applies continuously from January 1, 2010 through December 31,
3320-2024; however, no claim for credit or refund is allowed for
3321-taxes paid as a result of the disallowance of this exemption on
3322-or after January 1, 2015 and prior to February 5, 2020 (the
3323-effective date of Public Act 101-629).
3324-(30) Beginning January 1, 2017 and through December 31,
3325-2026, menstrual pads, tampons, and menstrual cups.
3326-(31) Tangible personal property transferred to a purchaser
3327-who is exempt from tax by operation of federal law. This
3328-
3329-
3330-paragraph is exempt from the provisions of Section 3-55.
3331-(32) Qualified tangible personal property used in the
3332-construction or operation of a data center that has been
3333-granted a certificate of exemption by the Department of
3334-Commerce and Economic Opportunity, whether that tangible
3335-personal property is purchased by the owner, operator, or
3336-tenant of the data center or by a contractor or subcontractor
3337-of the owner, operator, or tenant. Data centers that would
3338-have qualified for a certificate of exemption prior to January
3339-1, 2020 had Public Act 101-31 been in effect, may apply for and
3340-obtain an exemption for subsequent purchases of computer
3341-equipment or enabling software purchased or leased to upgrade,
3342-supplement, or replace computer equipment or enabling software
3343-purchased or leased in the original investment that would have
3344-qualified.
3345-The Department of Commerce and Economic Opportunity shall
3346-grant a certificate of exemption under this item (32) to
3347-qualified data centers as defined by Section 605-1025 of the
3348-Department of Commerce and Economic Opportunity Law of the
3349-Civil Administrative Code of Illinois.
3350-For the purposes of this item (32):
3351-"Data center" means a building or a series of
3352-buildings rehabilitated or constructed to house working
3353-servers in one physical location or multiple sites within
3354-the State of Illinois.
3355-"Qualified tangible personal property" means:
3356-
3357-
3358-electrical systems and equipment; climate control and
3359-chilling equipment and systems; mechanical systems and
3360-equipment; monitoring and secure systems; emergency
3361-generators; hardware; computers; servers; data storage
3362-devices; network connectivity equipment; racks; cabinets;
3363-telecommunications cabling infrastructure; raised floor
3364-systems; peripheral components or systems; software;
3365-mechanical, electrical, or plumbing systems; battery
3366-systems; cooling systems and towers; temperature control
3367-systems; other cabling; and other data center
3368-infrastructure equipment and systems necessary to operate
3369-qualified tangible personal property, including fixtures;
3370-and component parts of any of the foregoing, including
3371-installation, maintenance, repair, refurbishment, and
3372-replacement of qualified tangible personal property to
3373-generate, transform, transmit, distribute, or manage
3374-electricity necessary to operate qualified tangible
3375-personal property; and all other tangible personal
3376-property that is essential to the operations of a computer
3377-data center. The term "qualified tangible personal
3378-property" also includes building materials physically
3379-incorporated into in to the qualifying data center. To
3380-document the exemption allowed under this Section, the
3381-retailer must obtain from the purchaser a copy of the
3382-certificate of eligibility issued by the Department of
3383-Commerce and Economic Opportunity.
3384-
3385-
3386-This item (32) is exempt from the provisions of Section
3387-3-55.
3388-(33) Beginning July 1, 2022, breast pumps, breast pump
3389-collection and storage supplies, and breast pump kits. This
3390-item (33) is exempt from the provisions of Section 3-55. As
3391-used in this item (33):
3392-"Breast pump" means an electrically controlled or
3393-manually controlled pump device designed or marketed to be
3394-used to express milk from a human breast during lactation,
3395-including the pump device and any battery, AC adapter, or
3396-other power supply unit that is used to power the pump
3397-device and is packaged and sold with the pump device at the
3398-time of sale.
3399-"Breast pump collection and storage supplies" means
3400-items of tangible personal property designed or marketed
3401-to be used in conjunction with a breast pump to collect
3402-milk expressed from a human breast and to store collected
3403-milk until it is ready for consumption.
3404-"Breast pump collection and storage supplies"
3405-includes, but is not limited to: breast shields and breast
3406-shield connectors; breast pump tubes and tubing adapters;
3407-breast pump valves and membranes; backflow protectors and
3408-backflow protector adaptors; bottles and bottle caps
3409-specific to the operation of the breast pump; and breast
3410-milk storage bags.
3411-"Breast pump collection and storage supplies" does not
3412-
3413-
3414-include: (1) bottles and bottle caps not specific to the
3415-operation of the breast pump; (2) breast pump travel bags
3416-and other similar carrying accessories, including ice
3417-packs, labels, and other similar products; (3) breast pump
3418-cleaning supplies; (4) nursing bras, bra pads, breast
3419-shells, and other similar products; and (5) creams,
3420-ointments, and other similar products that relieve
3421-breastfeeding-related symptoms or conditions of the
3422-breasts or nipples, unless sold as part of a breast pump
3423-kit that is pre-packaged by the breast pump manufacturer
3424-or distributor.
3425-"Breast pump kit" means a kit that: (1) contains no
3426-more than a breast pump, breast pump collection and
3427-storage supplies, a rechargeable battery for operating the
3428-breast pump, a breastmilk cooler, bottle stands, ice
3429-packs, and a breast pump carrying case; and (2) is
3430-pre-packaged as a breast pump kit by the breast pump
3431-manufacturer or distributor.
3432-(34) Tangible personal property sold by or on behalf of
3433-the State Treasurer pursuant to the Revised Uniform Unclaimed
3434-Property Act. This item (34) is exempt from the provisions of
3435-Section 3-55.
3436-(35) Beginning on January 1, 2024, tangible personal
3437-property purchased by an active duty member of the armed
3438-forces of the United States who presents valid military
3439-identification and purchases the property using a form of
3440-
3441-
3442-payment where the federal government is the payor. The member
3443-of the armed forces must complete, at the point of sale, a form
3444-prescribed by the Department of Revenue documenting that the
3445-transaction is eligible for the exemption under this
3446-paragraph. Retailers must keep the form as documentation of
3447-the exemption in their records for a period of not less than 6
3448-years. "Armed forces of the United States" means the United
3449-States Army, Navy, Air Force, Marine Corps, or Coast Guard.
3450-This paragraph is exempt from the provisions of Section 3-55.
3451-(36) Beginning July 1, 2024, home-delivered meals provided
3452-to Medicare or Medicaid recipients when payment is made by an
3453-intermediary, such as a Medicare Administrative Contractor, a
3454-Managed Care Organization, or a Medicare Advantage
3455-Organization, pursuant to a government contract. This
3456-paragraph (35) is exempt from the provisions of Section 3-55.
3457-(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
3458-Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
3459-75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
3460-Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
3461-eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
3462-revised 9-19-23.)
3463-Section 20. The Retailers' Occupation Tax Act is amended
3464-by changing Section 2-5 as follows:
3465-(35 ILCS 120/2-5)
3466-
3467-
3468-(Text of Section before amendment by P.A. 103-384)
3469-Sec. 2-5. Exemptions. Gross receipts from proceeds from
3470-the sale of the following tangible personal property are
3471-exempt from the tax imposed by this Act:
3472-(1) Farm chemicals.
3473-(2) Farm machinery and equipment, both new and used,
3474-including that manufactured on special order, certified by
3475-the purchaser to be used primarily for production
3476-agriculture or State or federal agricultural programs,
3477-including individual replacement parts for the machinery
3478-and equipment, including machinery and equipment purchased
3479-for lease, and including implements of husbandry defined
3480-in Section 1-130 of the Illinois Vehicle Code, farm
3481-machinery and agricultural chemical and fertilizer
3482-spreaders, and nurse wagons required to be registered
3483-under Section 3-809 of the Illinois Vehicle Code, but
3484-excluding other motor vehicles required to be registered
3485-under the Illinois Vehicle Code. Horticultural polyhouses
3486-or hoop houses used for propagating, growing, or
3487-overwintering plants shall be considered farm machinery
3488-and equipment under this item (2). Agricultural chemical
3489-tender tanks and dry boxes shall include units sold
3490-separately from a motor vehicle required to be licensed
3491-and units sold mounted on a motor vehicle required to be
3492-licensed, if the selling price of the tender is separately
3493-stated.
3494-
3495-
3496-Farm machinery and equipment shall include precision
3497-farming equipment that is installed or purchased to be
3498-installed on farm machinery and equipment including, but
3499-not limited to, tractors, harvesters, sprayers, planters,
3500-seeders, or spreaders. Precision farming equipment
3501-includes, but is not limited to, soil testing sensors,
3502-computers, monitors, software, global positioning and
3503-mapping systems, and other such equipment.
3504-Farm machinery and equipment also includes computers,
3505-sensors, software, and related equipment used primarily in
3506-the computer-assisted operation of production agriculture
3507-facilities, equipment, and activities such as, but not
3508-limited to, the collection, monitoring, and correlation of
3509-animal and crop data for the purpose of formulating animal
3510-diets and agricultural chemicals.
3511-Beginning on January 1, 2024, farm machinery and
3512-equipment also includes electrical power generation
3513-equipment used primarily for production agriculture.
3514-This item (2) is exempt from the provisions of Section
3515-2-70.
3516-(3) Until July 1, 2003, distillation machinery and
3517-equipment, sold as a unit or kit, assembled or installed
3518-by the retailer, certified by the user to be used only for
3519-the production of ethyl alcohol that will be used for
3520-consumption as motor fuel or as a component of motor fuel
3521-for the personal use of the user, and not subject to sale
3522-
3523-
3524-or resale.
3525-(4) Until July 1, 2003 and beginning again September
3526-1, 2004 through August 30, 2014, graphic arts machinery
3527-and equipment, including repair and replacement parts,
3528-both new and used, and including that manufactured on
3529-special order or purchased for lease, certified by the
3530-purchaser to be used primarily for graphic arts
3531-production. Equipment includes chemicals or chemicals
3532-acting as catalysts but only if the chemicals or chemicals
3533-acting as catalysts effect a direct and immediate change
3534-upon a graphic arts product. Beginning on July 1, 2017,
3535-graphic arts machinery and equipment is included in the
3536-manufacturing and assembling machinery and equipment
3537-exemption under paragraph (14).
3538-(5) A motor vehicle that is used for automobile
3539-renting, as defined in the Automobile Renting Occupation
3540-and Use Tax Act. This paragraph is exempt from the
3541-provisions of Section 2-70.
3542-(6) Personal property sold by a teacher-sponsored
3543-student organization affiliated with an elementary or
3544-secondary school located in Illinois.
3545-(7) Until July 1, 2003, proceeds of that portion of
3546-the selling price of a passenger car the sale of which is
3547-subject to the Replacement Vehicle Tax.
3548-(8) Personal property sold to an Illinois county fair
3549-association for use in conducting, operating, or promoting
3550-
3551-
3552-the county fair.
3553-(9) Personal property sold to a not-for-profit arts or
3554-cultural organization that establishes, by proof required
3555-by the Department by rule, that it has received an
3556-exemption under Section 501(c)(3) of the Internal Revenue
3557-Code and that is organized and operated primarily for the
3558-presentation or support of arts or cultural programming,
3559-activities, or services. These organizations include, but
3560-are not limited to, music and dramatic arts organizations
3561-such as symphony orchestras and theatrical groups, arts
3562-and cultural service organizations, local arts councils,
3563-visual arts organizations, and media arts organizations.
3564-On and after July 1, 2001 (the effective date of Public Act
3565-92-35), however, an entity otherwise eligible for this
3566-exemption shall not make tax-free purchases unless it has
3567-an active identification number issued by the Department.
3568-(10) Personal property sold by a corporation, society,
3569-association, foundation, institution, or organization,
3570-other than a limited liability company, that is organized
3571-and operated as a not-for-profit service enterprise for
3572-the benefit of persons 65 years of age or older if the
3573-personal property was not purchased by the enterprise for
3574-the purpose of resale by the enterprise.
3575-(11) Personal property sold to a governmental body, to
3576-a corporation, society, association, foundation, or
3577-institution organized and operated exclusively for
3578-
3579-
3580-charitable, religious, or educational purposes, or to a
3581-not-for-profit corporation, society, association,
3582-foundation, institution, or organization that has no
3583-compensated officers or employees and that is organized
3584-and operated primarily for the recreation of persons 55
3585-years of age or older. A limited liability company may
3586-qualify for the exemption under this paragraph only if the
3587-limited liability company is organized and operated
3588-exclusively for educational purposes. On and after July 1,
3589-1987, however, no entity otherwise eligible for this
3590-exemption shall make tax-free purchases unless it has an
3591-active identification number issued by the Department.
3592-(12) (Blank).
3593-(12-5) On and after July 1, 2003 and through June 30,
3594-2004, motor vehicles of the second division with a gross
3595-vehicle weight in excess of 8,000 pounds that are subject
3596-to the commercial distribution fee imposed under Section
3597-3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
3598-2004 and through June 30, 2005, the use in this State of
3599-motor vehicles of the second division: (i) with a gross
3600-vehicle weight rating in excess of 8,000 pounds; (ii) that
3601-are subject to the commercial distribution fee imposed
3602-under Section 3-815.1 of the Illinois Vehicle Code; and
3603-(iii) that are primarily used for commercial purposes.
3604-Through June 30, 2005, this exemption applies to repair
3605-and replacement parts added after the initial purchase of
3606-
3607-
3608-such a motor vehicle if that motor vehicle is used in a
3609-manner that would qualify for the rolling stock exemption
3610-otherwise provided for in this Act. For purposes of this
3611-paragraph, "used for commercial purposes" means the
3612-transportation of persons or property in furtherance of
3613-any commercial or industrial enterprise whether for-hire
3614-or not.
3615-(13) Proceeds from sales to owners, lessors, or
3616-shippers of tangible personal property that is utilized by
3617-interstate carriers for hire for use as rolling stock
3618-moving in interstate commerce and equipment operated by a
3619-telecommunications provider, licensed as a common carrier
3620-by the Federal Communications Commission, which is
3621-permanently installed in or affixed to aircraft moving in
3622-interstate commerce.
3623-(14) Machinery and equipment that will be used by the
3624-purchaser, or a lessee of the purchaser, primarily in the
3625-process of manufacturing or assembling tangible personal
3626-property for wholesale or retail sale or lease, whether
3627-the sale or lease is made directly by the manufacturer or
3628-by some other person, whether the materials used in the
3629-process are owned by the manufacturer or some other
3630-person, or whether the sale or lease is made apart from or
3631-as an incident to the seller's engaging in the service
3632-occupation of producing machines, tools, dies, jigs,
3633-patterns, gauges, or other similar items of no commercial
3634-
3635-
3636-value on special order for a particular purchaser. The
3637-exemption provided by this paragraph (14) does not include
3638-machinery and equipment used in (i) the generation of
3639-electricity for wholesale or retail sale; (ii) the
3640-generation or treatment of natural or artificial gas for
3641-wholesale or retail sale that is delivered to customers
3642-through pipes, pipelines, or mains; or (iii) the treatment
3643-of water for wholesale or retail sale that is delivered to
3644-customers through pipes, pipelines, or mains. The
3645-provisions of Public Act 98-583 are declaratory of
3646-existing law as to the meaning and scope of this
3647-exemption. Beginning on July 1, 2017, the exemption
3648-provided by this paragraph (14) includes, but is not
3649-limited to, graphic arts machinery and equipment, as
3650-defined in paragraph (4) of this Section.
3651-(15) Proceeds of mandatory service charges separately
3652-stated on customers' bills for purchase and consumption of
3653-food and beverages, to the extent that the proceeds of the
3654-service charge are in fact turned over as tips or as a
3655-substitute for tips to the employees who participate
3656-directly in preparing, serving, hosting or cleaning up the
3657-food or beverage function with respect to which the
3658-service charge is imposed.
3659-(16) Tangible personal property sold to a purchaser if
3660-the purchaser is exempt from use tax by operation of
3661-federal law. This paragraph is exempt from the provisions
3662-
3663-
3664-of Section 2-70.
3665-(17) Tangible personal property sold to a common
3666-carrier by rail or motor that receives the physical
3667-possession of the property in Illinois and that transports
3668-the property, or shares with another common carrier in the
3669-transportation of the property, out of Illinois on a
3670-standard uniform bill of lading showing the seller of the
3671-property as the shipper or consignor of the property to a
3672-destination outside Illinois, for use outside Illinois.
3673-(18) Legal tender, currency, medallions, or gold or
3674-silver coinage issued by the State of Illinois, the
3675-government of the United States of America, or the
3676-government of any foreign country, and bullion.
3677-(19) Until July 1, 2003, oil field exploration,
3678-drilling, and production equipment, including (i) rigs and
3679-parts of rigs, rotary rigs, cable tool rigs, and workover
3680-rigs, (ii) pipe and tubular goods, including casing and
3681-drill strings, (iii) pumps and pump-jack units, (iv)
3682-storage tanks and flow lines, (v) any individual
3683-replacement part for oil field exploration, drilling, and
3684-production equipment, and (vi) machinery and equipment
3685-purchased for lease; but excluding motor vehicles required
3686-to be registered under the Illinois Vehicle Code.
3687-(20) Photoprocessing machinery and equipment,
3688-including repair and replacement parts, both new and used,
3689-including that manufactured on special order, certified by
3690-
3691-
3692-the purchaser to be used primarily for photoprocessing,
3693-and including photoprocessing machinery and equipment
3694-purchased for lease.
3695-(21) Until July 1, 2028, coal and aggregate
3696-exploration, mining, off-highway hauling, processing,
3697-maintenance, and reclamation equipment, including
3698-replacement parts and equipment, and including equipment
3699-purchased for lease, but excluding motor vehicles required
3700-to be registered under the Illinois Vehicle Code. The
3701-changes made to this Section by Public Act 97-767 apply on
3702-and after July 1, 2003, but no claim for credit or refund
3703-is allowed on or after August 16, 2013 (the effective date
3704-of Public Act 98-456) for such taxes paid during the
3705-period beginning July 1, 2003 and ending on August 16,
3706-2013 (the effective date of Public Act 98-456).
3707-(22) Until June 30, 2013, fuel and petroleum products
3708-sold to or used by an air carrier, certified by the carrier
3709-to be used for consumption, shipment, or storage in the
3710-conduct of its business as an air common carrier, for a
3711-flight destined for or returning from a location or
3712-locations outside the United States without regard to
3713-previous or subsequent domestic stopovers.
3714-Beginning July 1, 2013, fuel and petroleum products
3715-sold to or used by an air carrier, certified by the carrier
3716-to be used for consumption, shipment, or storage in the
3717-conduct of its business as an air common carrier, for a
3718-
3719-
3720-flight that (i) is engaged in foreign trade or is engaged
3721-in trade between the United States and any of its
3722-possessions and (ii) transports at least one individual or
3723-package for hire from the city of origination to the city
3724-of final destination on the same aircraft, without regard
3725-to a change in the flight number of that aircraft.
3726-(23) A transaction in which the purchase order is
3727-received by a florist who is located outside Illinois, but
3728-who has a florist located in Illinois deliver the property
3729-to the purchaser or the purchaser's donee in Illinois.
3730-(24) Fuel consumed or used in the operation of ships,
3731-barges, or vessels that are used primarily in or for the
3732-transportation of property or the conveyance of persons
3733-for hire on rivers bordering on this State if the fuel is
3734-delivered by the seller to the purchaser's barge, ship, or
3735-vessel while it is afloat upon that bordering river.
3736-(25) Except as provided in item (25-5) of this
3737-Section, a motor vehicle sold in this State to a
3738-nonresident even though the motor vehicle is delivered to
3739-the nonresident in this State, if the motor vehicle is not
3740-to be titled in this State, and if a drive-away permit is
3741-issued to the motor vehicle as provided in Section 3-603
3742-of the Illinois Vehicle Code or if the nonresident
3743-purchaser has vehicle registration plates to transfer to
3744-the motor vehicle upon returning to his or her home state.
3745-The issuance of the drive-away permit or having the
3746-
3747-
3748-out-of-state registration plates to be transferred is
3749-prima facie evidence that the motor vehicle will not be
3750-titled in this State.
3751-(25-5) The exemption under item (25) does not apply if
3752-the state in which the motor vehicle will be titled does
3753-not allow a reciprocal exemption for a motor vehicle sold
3754-and delivered in that state to an Illinois resident but
3755-titled in Illinois. The tax collected under this Act on
3756-the sale of a motor vehicle in this State to a resident of
3757-another state that does not allow a reciprocal exemption
3758-shall be imposed at a rate equal to the state's rate of tax
3759-on taxable property in the state in which the purchaser is
3760-a resident, except that the tax shall not exceed the tax
3761-that would otherwise be imposed under this Act. At the
3762-time of the sale, the purchaser shall execute a statement,
3763-signed under penalty of perjury, of his or her intent to
3764-title the vehicle in the state in which the purchaser is a
3765-resident within 30 days after the sale and of the fact of
3766-the payment to the State of Illinois of tax in an amount
3767-equivalent to the state's rate of tax on taxable property
3768-in his or her state of residence and shall submit the
3769-statement to the appropriate tax collection agency in his
3770-or her state of residence. In addition, the retailer must
3771-retain a signed copy of the statement in his or her
3772-records. Nothing in this item shall be construed to
3773-require the removal of the vehicle from this state
3774-
3775-
3776-following the filing of an intent to title the vehicle in
3777-the purchaser's state of residence if the purchaser titles
3778-the vehicle in his or her state of residence within 30 days
3779-after the date of sale. The tax collected under this Act in
3780-accordance with this item (25-5) shall be proportionately
3781-distributed as if the tax were collected at the 6.25%
3782-general rate imposed under this Act.
3783-(25-7) Beginning on July 1, 2007, no tax is imposed
3784-under this Act on the sale of an aircraft, as defined in
3785-Section 3 of the Illinois Aeronautics Act, if all of the
3786-following conditions are met:
3787-(1) the aircraft leaves this State within 15 days
3788-after the later of either the issuance of the final
3789-billing for the sale of the aircraft, or the
3790-authorized approval for return to service, completion
3791-of the maintenance record entry, and completion of the
3792-test flight and ground test for inspection, as
3793-required by 14 CFR 91.407;
3794-(2) the aircraft is not based or registered in
3795-this State after the sale of the aircraft; and
3796-(3) the seller retains in his or her books and
3797-records and provides to the Department a signed and
3798-dated certification from the purchaser, on a form
3799-prescribed by the Department, certifying that the
3800-requirements of this item (25-7) are met. The
3801-certificate must also include the name and address of
3802-
3803-
3804-the purchaser, the address of the location where the
3805-aircraft is to be titled or registered, the address of
3806-the primary physical location of the aircraft, and
3807-other information that the Department may reasonably
3808-require.
3809-For purposes of this item (25-7):
3810-"Based in this State" means hangared, stored, or
3811-otherwise used, excluding post-sale customizations as
3812-defined in this Section, for 10 or more days in each
3813-12-month period immediately following the date of the sale
3814-of the aircraft.
3815-"Registered in this State" means an aircraft
3816-registered with the Department of Transportation,
3817-Aeronautics Division, or titled or registered with the
3818-Federal Aviation Administration to an address located in
3819-this State.
3820-This paragraph (25-7) is exempt from the provisions of
3821-Section 2-70.
3822-(26) Semen used for artificial insemination of
3823-livestock for direct agricultural production.
3824-(27) Horses, or interests in horses, registered with
3825-and meeting the requirements of any of the Arabian Horse
3826-Club Registry of America, Appaloosa Horse Club, American
3827-Quarter Horse Association, United States Trotting
3828-Association, or Jockey Club, as appropriate, used for
3829-purposes of breeding or racing for prizes. This item (27)
3830-
3831-
3832-is exempt from the provisions of Section 2-70, and the
3833-exemption provided for under this item (27) applies for
3834-all periods beginning May 30, 1995, but no claim for
3835-credit or refund is allowed on or after January 1, 2008
3836-(the effective date of Public Act 95-88) for such taxes
3837-paid during the period beginning May 30, 2000 and ending
3838-on January 1, 2008 (the effective date of Public Act
3839-95-88).
3840-(28) Computers and communications equipment utilized
3841-for any hospital purpose and equipment used in the
3842-diagnosis, analysis, or treatment of hospital patients
3843-sold to a lessor who leases the equipment, under a lease of
3844-one year or longer executed or in effect at the time of the
3845-purchase, to a hospital that has been issued an active tax
3846-exemption identification number by the Department under
3847-Section 1g of this Act.
3848-(29) Personal property sold to a lessor who leases the
3849-property, under a lease of one year or longer executed or
3850-in effect at the time of the purchase, to a governmental
3851-body that has been issued an active tax exemption
3852-identification number by the Department under Section 1g
3853-of this Act.
3854-(30) Beginning with taxable years ending on or after
3855-December 31, 1995 and ending with taxable years ending on
3856-or before December 31, 2004, personal property that is
3857-donated for disaster relief to be used in a State or
3858-
3859-
3860-federally declared disaster area in Illinois or bordering
3861-Illinois by a manufacturer or retailer that is registered
3862-in this State to a corporation, society, association,
3863-foundation, or institution that has been issued a sales
3864-tax exemption identification number by the Department that
3865-assists victims of the disaster who reside within the
3866-declared disaster area.
3867-(31) Beginning with taxable years ending on or after
3868-December 31, 1995 and ending with taxable years ending on
3869-or before December 31, 2004, personal property that is
3870-used in the performance of infrastructure repairs in this
3871-State, including, but not limited to, municipal roads and
3872-streets, access roads, bridges, sidewalks, waste disposal
3873-systems, water and sewer line extensions, water
3874-distribution and purification facilities, storm water
3875-drainage and retention facilities, and sewage treatment
3876-facilities, resulting from a State or federally declared
3877-disaster in Illinois or bordering Illinois when such
3878-repairs are initiated on facilities located in the
3879-declared disaster area within 6 months after the disaster.
3880-(32) Beginning July 1, 1999, game or game birds sold
3881-at a "game breeding and hunting preserve area" as that
3882-term is used in the Wildlife Code. This paragraph is
3883-exempt from the provisions of Section 2-70.
3884-(33) A motor vehicle, as that term is defined in
3885-Section 1-146 of the Illinois Vehicle Code, that is
3886-
3887-
3888-donated to a corporation, limited liability company,
3889-society, association, foundation, or institution that is
3890-determined by the Department to be organized and operated
3891-exclusively for educational purposes. For purposes of this
3892-exemption, "a corporation, limited liability company,
3893-society, association, foundation, or institution organized
3894-and operated exclusively for educational purposes" means
3895-all tax-supported public schools, private schools that
3896-offer systematic instruction in useful branches of
3897-learning by methods common to public schools and that
3898-compare favorably in their scope and intensity with the
3899-course of study presented in tax-supported schools, and
3900-vocational or technical schools or institutes organized
3901-and operated exclusively to provide a course of study of
3902-not less than 6 weeks duration and designed to prepare
3903-individuals to follow a trade or to pursue a manual,
3904-technical, mechanical, industrial, business, or commercial
3905-occupation.
3906-(34) Beginning January 1, 2000, personal property,
3907-including food, purchased through fundraising events for
3908-the benefit of a public or private elementary or secondary
3909-school, a group of those schools, or one or more school
3910-districts if the events are sponsored by an entity
3911-recognized by the school district that consists primarily
3912-of volunteers and includes parents and teachers of the
3913-school children. This paragraph does not apply to
3914-
3915-
3916-fundraising events (i) for the benefit of private home
3917-instruction or (ii) for which the fundraising entity
3918-purchases the personal property sold at the events from
3919-another individual or entity that sold the property for
3920-the purpose of resale by the fundraising entity and that
3921-profits from the sale to the fundraising entity. This
3922-paragraph is exempt from the provisions of Section 2-70.
3923-(35) Beginning January 1, 2000 and through December
3924-31, 2001, new or used automatic vending machines that
3925-prepare and serve hot food and beverages, including
3926-coffee, soup, and other items, and replacement parts for
3927-these machines. Beginning January 1, 2002 and through June
3928-30, 2003, machines and parts for machines used in
3929-commercial, coin-operated amusement and vending business
3930-if a use or occupation tax is paid on the gross receipts
3931-derived from the use of the commercial, coin-operated
3932-amusement and vending machines. This paragraph is exempt
3933-from the provisions of Section 2-70.
3934-(35-5) Beginning August 23, 2001 and through June 30,
3935-2016, food for human consumption that is to be consumed
3936-off the premises where it is sold (other than alcoholic
3937-beverages, soft drinks, and food that has been prepared
3938-for immediate consumption) and prescription and
3939-nonprescription medicines, drugs, medical appliances, and
3940-insulin, urine testing materials, syringes, and needles
3941-used by diabetics, for human use, when purchased for use
3942-
3943-
3944-by a person receiving medical assistance under Article V
3945-of the Illinois Public Aid Code who resides in a licensed
3946-long-term care facility, as defined in the Nursing Home
3947-Care Act, or a licensed facility as defined in the ID/DD
3948-Community Care Act, the MC/DD Act, or the Specialized
3949-Mental Health Rehabilitation Act of 2013.
3950-(36) Beginning August 2, 2001, computers and
3951-communications equipment utilized for any hospital purpose
3952-and equipment used in the diagnosis, analysis, or
3953-treatment of hospital patients sold to a lessor who leases
3954-the equipment, under a lease of one year or longer
3955-executed or in effect at the time of the purchase, to a
3956-hospital that has been issued an active tax exemption
3957-identification number by the Department under Section 1g
3958-of this Act. This paragraph is exempt from the provisions
3959-of Section 2-70.
3960-(37) Beginning August 2, 2001, personal property sold
3961-to a lessor who leases the property, under a lease of one
3962-year or longer executed or in effect at the time of the
3963-purchase, to a governmental body that has been issued an
3964-active tax exemption identification number by the
3965-Department under Section 1g of this Act. This paragraph is
3966-exempt from the provisions of Section 2-70.
3967-(38) Beginning on January 1, 2002 and through June 30,
3968-2016, tangible personal property purchased from an
3969-Illinois retailer by a taxpayer engaged in centralized
3970-
3971-
3972-purchasing activities in Illinois who will, upon receipt
3973-of the property in Illinois, temporarily store the
3974-property in Illinois (i) for the purpose of subsequently
3975-transporting it outside this State for use or consumption
3976-thereafter solely outside this State or (ii) for the
3977-purpose of being processed, fabricated, or manufactured
3978-into, attached to, or incorporated into other tangible
3979-personal property to be transported outside this State and
3980-thereafter used or consumed solely outside this State. The
3981-Director of Revenue shall, pursuant to rules adopted in
3982-accordance with the Illinois Administrative Procedure Act,
3983-issue a permit to any taxpayer in good standing with the
3984-Department who is eligible for the exemption under this
3985-paragraph (38). The permit issued under this paragraph
3986-(38) shall authorize the holder, to the extent and in the
3987-manner specified in the rules adopted under this Act, to
3988-purchase tangible personal property from a retailer exempt
3989-from the taxes imposed by this Act. Taxpayers shall
3990-maintain all necessary books and records to substantiate
3991-the use and consumption of all such tangible personal
3992-property outside of the State of Illinois.
3993-(39) Beginning January 1, 2008, tangible personal
3994-property used in the construction or maintenance of a
3995-community water supply, as defined under Section 3.145 of
3996-the Environmental Protection Act, that is operated by a
3997-not-for-profit corporation that holds a valid water supply
3998-
3999-
4000-permit issued under Title IV of the Environmental
4001-Protection Act. This paragraph is exempt from the
4002-provisions of Section 2-70.
4003-(40) Beginning January 1, 2010 and continuing through
4004-December 31, 2029, materials, parts, equipment,
4005-components, and furnishings incorporated into or upon an
4006-aircraft as part of the modification, refurbishment,
4007-completion, replacement, repair, or maintenance of the
4008-aircraft. This exemption includes consumable supplies used
4009-in the modification, refurbishment, completion,
4010-replacement, repair, and maintenance of aircraft. However,
4011-until January 1, 2024, this exemption excludes any
4012-materials, parts, equipment, components, and consumable
4013-supplies used in the modification, replacement, repair,
4014-and maintenance of aircraft engines or power plants,
4015-whether such engines or power plants are installed or
4016-uninstalled upon any such aircraft. "Consumable supplies"
4017-include, but are not limited to, adhesive, tape,
4018-sandpaper, general purpose lubricants, cleaning solution,
4019-latex gloves, and protective films.
4020-Beginning January 1, 2010 and continuing through
4021-December 31, 2023, this exemption applies only to the sale
4022-of qualifying tangible personal property to persons who
4023-modify, refurbish, complete, replace, or maintain an
4024-aircraft and who (i) hold an Air Agency Certificate and
4025-are empowered to operate an approved repair station by the
4026-
4027-
4028-Federal Aviation Administration, (ii) have a Class IV
4029-Rating, and (iii) conduct operations in accordance with
4030-Part 145 of the Federal Aviation Regulations. The
4031-exemption does not include aircraft operated by a
4032-commercial air carrier providing scheduled passenger air
4033-service pursuant to authority issued under Part 121 or
4034-Part 129 of the Federal Aviation Regulations. From January
4035-1, 2024 through December 31, 2029, this exemption applies
4036-only to the use of qualifying tangible personal property
4037-by: (A) persons who modify, refurbish, complete, repair,
4038-replace, or maintain aircraft and who (i) hold an Air
4039-Agency Certificate and are empowered to operate an
4040-approved repair station by the Federal Aviation
4041-Administration, (ii) have a Class IV Rating, and (iii)
4042-conduct operations in accordance with Part 145 of the
4043-Federal Aviation Regulations; and (B) persons who engage
4044-in the modification, replacement, repair, and maintenance
4045-of aircraft engines or power plants without regard to
4046-whether or not those persons meet the qualifications of
4047-item (A).
4048-The changes made to this paragraph (40) by Public Act
4049-98-534 are declarative of existing law. It is the intent
4050-of the General Assembly that the exemption under this
4051-paragraph (40) applies continuously from January 1, 2010
4052-through December 31, 2024; however, no claim for credit or
4053-refund is allowed for taxes paid as a result of the
4054-
4055-
4056-disallowance of this exemption on or after January 1, 2015
4057-and prior to February 5, 2020 (the effective date of
4058-Public Act 101-629).
4059-(41) Tangible personal property sold to a
4060-public-facilities corporation, as described in Section
4061-11-65-10 of the Illinois Municipal Code, for purposes of
4062-constructing or furnishing a municipal convention hall,
4063-but only if the legal title to the municipal convention
4064-hall is transferred to the municipality without any
4065-further consideration by or on behalf of the municipality
4066-at the time of the completion of the municipal convention
4067-hall or upon the retirement or redemption of any bonds or
4068-other debt instruments issued by the public-facilities
4069-corporation in connection with the development of the
4070-municipal convention hall. This exemption includes
4071-existing public-facilities corporations as provided in
4072-Section 11-65-25 of the Illinois Municipal Code. This
4073-paragraph is exempt from the provisions of Section 2-70.
4074-(42) Beginning January 1, 2017 and through December
4075-31, 2026, menstrual pads, tampons, and menstrual cups.
4076-(43) Merchandise that is subject to the Rental
4077-Purchase Agreement Occupation and Use Tax. The purchaser
4078-must certify that the item is purchased to be rented
4079-subject to a rental-purchase rental purchase agreement, as
4080-defined in the Rental-Purchase Rental Purchase Agreement
4081-Act, and provide proof of registration under the Rental
4082-
4083-
4084-Purchase Agreement Occupation and Use Tax Act. This
4085-paragraph is exempt from the provisions of Section 2-70.
4086-(44) Qualified tangible personal property used in the
4087-construction or operation of a data center that has been
4088-granted a certificate of exemption by the Department of
4089-Commerce and Economic Opportunity, whether that tangible
4090-personal property is purchased by the owner, operator, or
4091-tenant of the data center or by a contractor or
4092-subcontractor of the owner, operator, or tenant. Data
4093-centers that would have qualified for a certificate of
4094-exemption prior to January 1, 2020 had Public Act 101-31
4095-been in effect, may apply for and obtain an exemption for
4096-subsequent purchases of computer equipment or enabling
4097-software purchased or leased to upgrade, supplement, or
4098-replace computer equipment or enabling software purchased
4099-or leased in the original investment that would have
4100-qualified.
4101-The Department of Commerce and Economic Opportunity
4102-shall grant a certificate of exemption under this item
4103-(44) to qualified data centers as defined by Section
4104-605-1025 of the Department of Commerce and Economic
4105-Opportunity Law of the Civil Administrative Code of
4106-Illinois.
4107-For the purposes of this item (44):
4108-"Data center" means a building or a series of
4109-buildings rehabilitated or constructed to house
4110-
4111-
4112-working servers in one physical location or multiple
4113-sites within the State of Illinois.
4114-"Qualified tangible personal property" means:
4115-electrical systems and equipment; climate control and
4116-chilling equipment and systems; mechanical systems and
4117-equipment; monitoring and secure systems; emergency
4118-generators; hardware; computers; servers; data storage
4119-devices; network connectivity equipment; racks;
4120-cabinets; telecommunications cabling infrastructure;
4121-raised floor systems; peripheral components or
4122-systems; software; mechanical, electrical, or plumbing
4123-systems; battery systems; cooling systems and towers;
4124-temperature control systems; other cabling; and other
4125-data center infrastructure equipment and systems
4126-necessary to operate qualified tangible personal
4127-property, including fixtures; and component parts of
4128-any of the foregoing, including installation,
4129-maintenance, repair, refurbishment, and replacement of
4130-qualified tangible personal property to generate,
4131-transform, transmit, distribute, or manage electricity
4132-necessary to operate qualified tangible personal
4133-property; and all other tangible personal property
4134-that is essential to the operations of a computer data
4135-center. The term "qualified tangible personal
4136-property" also includes building materials physically
4137-incorporated into the qualifying data center. To
4138-
4139-
4140-document the exemption allowed under this Section, the
4141-retailer must obtain from the purchaser a copy of the
4142-certificate of eligibility issued by the Department of
4143-Commerce and Economic Opportunity.
4144-This item (44) is exempt from the provisions of
4145-Section 2-70.
4146-(45) Beginning January 1, 2020 and through December
4147-31, 2020, sales of tangible personal property made by a
4148-marketplace seller over a marketplace for which tax is due
4149-under this Act but for which use tax has been collected and
4150-remitted to the Department by a marketplace facilitator
4151-under Section 2d of the Use Tax Act are exempt from tax
4152-under this Act. A marketplace seller claiming this
4153-exemption shall maintain books and records demonstrating
4154-that the use tax on such sales has been collected and
4155-remitted by a marketplace facilitator. Marketplace sellers
4156-that have properly remitted tax under this Act on such
4157-sales may file a claim for credit as provided in Section 6
4158-of this Act. No claim is allowed, however, for such taxes
4159-for which a credit or refund has been issued to the
4160-marketplace facilitator under the Use Tax Act, or for
4161-which the marketplace facilitator has filed a claim for
4162-credit or refund under the Use Tax Act.
4163-(46) Beginning July 1, 2022, breast pumps, breast pump
4164-collection and storage supplies, and breast pump kits.
4165-This item (46) is exempt from the provisions of Section
4166-
4167-
4168-2-70. As used in this item (46):
4169-"Breast pump" means an electrically controlled or
4170-manually controlled pump device designed or marketed to be
4171-used to express milk from a human breast during lactation,
4172-including the pump device and any battery, AC adapter, or
4173-other power supply unit that is used to power the pump
4174-device and is packaged and sold with the pump device at the
4175-time of sale.
4176-"Breast pump collection and storage supplies" means
4177-items of tangible personal property designed or marketed
4178-to be used in conjunction with a breast pump to collect
4179-milk expressed from a human breast and to store collected
4180-milk until it is ready for consumption.
4181-"Breast pump collection and storage supplies"
4182-includes, but is not limited to: breast shields and breast
4183-shield connectors; breast pump tubes and tubing adapters;
4184-breast pump valves and membranes; backflow protectors and
4185-backflow protector adaptors; bottles and bottle caps
4186-specific to the operation of the breast pump; and breast
4187-milk storage bags.
4188-"Breast pump collection and storage supplies" does not
4189-include: (1) bottles and bottle caps not specific to the
4190-operation of the breast pump; (2) breast pump travel bags
4191-and other similar carrying accessories, including ice
4192-packs, labels, and other similar products; (3) breast pump
4193-cleaning supplies; (4) nursing bras, bra pads, breast
4194-
4195-
4196-shells, and other similar products; and (5) creams,
4197-ointments, and other similar products that relieve
4198-breastfeeding-related symptoms or conditions of the
4199-breasts or nipples, unless sold as part of a breast pump
4200-kit that is pre-packaged by the breast pump manufacturer
4201-or distributor.
4202-"Breast pump kit" means a kit that: (1) contains no
4203-more than a breast pump, breast pump collection and
4204-storage supplies, a rechargeable battery for operating the
4205-breast pump, a breastmilk cooler, bottle stands, ice
4206-packs, and a breast pump carrying case; and (2) is
4207-pre-packaged as a breast pump kit by the breast pump
4208-manufacturer or distributor.
4209-(47) Tangible personal property sold by or on behalf
4210-of the State Treasurer pursuant to the Revised Uniform
4211-Unclaimed Property Act. This item (47) is exempt from the
4212-provisions of Section 2-70.
4213-(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
4214-102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
4215-Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
4216-5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
4217-5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
4218-6-7-23; 103-154, eff. 6-30-23; revised 9-26-23.)
4219-(Text of Section after amendment by P.A. 103-384)
4220-Sec. 2-5. Exemptions. Gross receipts from proceeds from
4221-
4222-
4223-the sale of the following tangible personal property are
4224-exempt from the tax imposed by this Act:
4225-(1) Farm chemicals.
4226-(2) Farm machinery and equipment, both new and used,
4227-including that manufactured on special order, certified by
4228-the purchaser to be used primarily for production
4229-agriculture or State or federal agricultural programs,
4230-including individual replacement parts for the machinery
4231-and equipment, including machinery and equipment purchased
4232-for lease, and including implements of husbandry defined
4233-in Section 1-130 of the Illinois Vehicle Code, farm
4234-machinery and agricultural chemical and fertilizer
4235-spreaders, and nurse wagons required to be registered
4236-under Section 3-809 of the Illinois Vehicle Code, but
4237-excluding other motor vehicles required to be registered
4238-under the Illinois Vehicle Code. Horticultural polyhouses
4239-or hoop houses used for propagating, growing, or
4240-overwintering plants shall be considered farm machinery
4241-and equipment under this item (2). Agricultural chemical
4242-tender tanks and dry boxes shall include units sold
4243-separately from a motor vehicle required to be licensed
4244-and units sold mounted on a motor vehicle required to be
4245-licensed, if the selling price of the tender is separately
4246-stated.
4247-Farm machinery and equipment shall include precision
4248-farming equipment that is installed or purchased to be
4249-
4250-
4251-installed on farm machinery and equipment including, but
4252-not limited to, tractors, harvesters, sprayers, planters,
4253-seeders, or spreaders. Precision farming equipment
4254-includes, but is not limited to, soil testing sensors,
4255-computers, monitors, software, global positioning and
4256-mapping systems, and other such equipment.
4257-Farm machinery and equipment also includes computers,
4258-sensors, software, and related equipment used primarily in
4259-the computer-assisted operation of production agriculture
4260-facilities, equipment, and activities such as, but not
4261-limited to, the collection, monitoring, and correlation of
4262-animal and crop data for the purpose of formulating animal
4263-diets and agricultural chemicals.
4264-Beginning on January 1, 2024, farm machinery and
4265-equipment also includes electrical power generation
4266-equipment used primarily for production agriculture.
4267-This item (2) is exempt from the provisions of Section
4268-2-70.
4269-(3) Until July 1, 2003, distillation machinery and
4270-equipment, sold as a unit or kit, assembled or installed
4271-by the retailer, certified by the user to be used only for
4272-the production of ethyl alcohol that will be used for
4273-consumption as motor fuel or as a component of motor fuel
4274-for the personal use of the user, and not subject to sale
4275-or resale.
4276-(4) Until July 1, 2003 and beginning again September
4277-
4278-
4279-1, 2004 through August 30, 2014, graphic arts machinery
4280-and equipment, including repair and replacement parts,
4281-both new and used, and including that manufactured on
4282-special order or purchased for lease, certified by the
4283-purchaser to be used primarily for graphic arts
4284-production. Equipment includes chemicals or chemicals
4285-acting as catalysts but only if the chemicals or chemicals
4286-acting as catalysts effect a direct and immediate change
4287-upon a graphic arts product. Beginning on July 1, 2017,
4288-graphic arts machinery and equipment is included in the
4289-manufacturing and assembling machinery and equipment
4290-exemption under paragraph (14).
4291-(5) A motor vehicle that is used for automobile
4292-renting, as defined in the Automobile Renting Occupation
4293-and Use Tax Act. This paragraph is exempt from the
4294-provisions of Section 2-70.
4295-(6) Personal property sold by a teacher-sponsored
4296-student organization affiliated with an elementary or
4297-secondary school located in Illinois.
4298-(7) Until July 1, 2003, proceeds of that portion of
4299-the selling price of a passenger car the sale of which is
4300-subject to the Replacement Vehicle Tax.
4301-(8) Personal property sold to an Illinois county fair
4302-association for use in conducting, operating, or promoting
4303-the county fair.
4304-(9) Personal property sold to a not-for-profit arts or
4305-
4306-
4307-cultural organization that establishes, by proof required
4308-by the Department by rule, that it has received an
4309-exemption under Section 501(c)(3) of the Internal Revenue
4310-Code and that is organized and operated primarily for the
4311-presentation or support of arts or cultural programming,
4312-activities, or services. These organizations include, but
4313-are not limited to, music and dramatic arts organizations
4314-such as symphony orchestras and theatrical groups, arts
4315-and cultural service organizations, local arts councils,
4316-visual arts organizations, and media arts organizations.
4317-On and after July 1, 2001 (the effective date of Public Act
4318-92-35), however, an entity otherwise eligible for this
4319-exemption shall not make tax-free purchases unless it has
4320-an active identification number issued by the Department.
4321-(10) Personal property sold by a corporation, society,
4322-association, foundation, institution, or organization,
4323-other than a limited liability company, that is organized
4324-and operated as a not-for-profit service enterprise for
4325-the benefit of persons 65 years of age or older if the
4326-personal property was not purchased by the enterprise for
4327-the purpose of resale by the enterprise.
4328-(11) Except as otherwise provided in this Section,
4329-personal property sold to a governmental body, to a
4330-corporation, society, association, foundation, or
4331-institution organized and operated exclusively for
4332-charitable, religious, or educational purposes, or to a
4333-
4334-
4335-not-for-profit corporation, society, association,
4336-foundation, institution, or organization that has no
4337-compensated officers or employees and that is organized
4338-and operated primarily for the recreation of persons 55
4339-years of age or older. A limited liability company may
4340-qualify for the exemption under this paragraph only if the
4341-limited liability company is organized and operated
4342-exclusively for educational purposes. On and after July 1,
4343-1987, however, no entity otherwise eligible for this
4344-exemption shall make tax-free purchases unless it has an
4345-active identification number issued by the Department.
4346-(12) (Blank).
4347-(12-5) On and after July 1, 2003 and through June 30,
4348-2004, motor vehicles of the second division with a gross
4349-vehicle weight in excess of 8,000 pounds that are subject
4350-to the commercial distribution fee imposed under Section
4351-3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
4352-2004 and through June 30, 2005, the use in this State of
4353-motor vehicles of the second division: (i) with a gross
4354-vehicle weight rating in excess of 8,000 pounds; (ii) that
4355-are subject to the commercial distribution fee imposed
4356-under Section 3-815.1 of the Illinois Vehicle Code; and
4357-(iii) that are primarily used for commercial purposes.
4358-Through June 30, 2005, this exemption applies to repair
4359-and replacement parts added after the initial purchase of
4360-such a motor vehicle if that motor vehicle is used in a
4361-
4362-
4363-manner that would qualify for the rolling stock exemption
4364-otherwise provided for in this Act. For purposes of this
4365-paragraph, "used for commercial purposes" means the
4366-transportation of persons or property in furtherance of
4367-any commercial or industrial enterprise whether for-hire
4368-or not.
4369-(13) Proceeds from sales to owners, lessors, or
4370-shippers of tangible personal property that is utilized by
4371-interstate carriers for hire for use as rolling stock
4372-moving in interstate commerce and equipment operated by a
4373-telecommunications provider, licensed as a common carrier
4374-by the Federal Communications Commission, which is
4375-permanently installed in or affixed to aircraft moving in
4376-interstate commerce.
4377-(14) Machinery and equipment that will be used by the
4378-purchaser, or a lessee of the purchaser, primarily in the
4379-process of manufacturing or assembling tangible personal
4380-property for wholesale or retail sale or lease, whether
4381-the sale or lease is made directly by the manufacturer or
4382-by some other person, whether the materials used in the
4383-process are owned by the manufacturer or some other
4384-person, or whether the sale or lease is made apart from or
4385-as an incident to the seller's engaging in the service
4386-occupation of producing machines, tools, dies, jigs,
4387-patterns, gauges, or other similar items of no commercial
4388-value on special order for a particular purchaser. The
4389-
4390-
4391-exemption provided by this paragraph (14) does not include
4392-machinery and equipment used in (i) the generation of
4393-electricity for wholesale or retail sale; (ii) the
4394-generation or treatment of natural or artificial gas for
4395-wholesale or retail sale that is delivered to customers
4396-through pipes, pipelines, or mains; or (iii) the treatment
4397-of water for wholesale or retail sale that is delivered to
4398-customers through pipes, pipelines, or mains. The
4399-provisions of Public Act 98-583 are declaratory of
4400-existing law as to the meaning and scope of this
4401-exemption. Beginning on July 1, 2017, the exemption
4402-provided by this paragraph (14) includes, but is not
4403-limited to, graphic arts machinery and equipment, as
4404-defined in paragraph (4) of this Section.
4405-(15) Proceeds of mandatory service charges separately
4406-stated on customers' bills for purchase and consumption of
4407-food and beverages, to the extent that the proceeds of the
4408-service charge are in fact turned over as tips or as a
4409-substitute for tips to the employees who participate
4410-directly in preparing, serving, hosting or cleaning up the
4411-food or beverage function with respect to which the
4412-service charge is imposed.
4413-(16) Tangible personal property sold to a purchaser if
4414-the purchaser is exempt from use tax by operation of
4415-federal law. This paragraph is exempt from the provisions
4416-of Section 2-70.
4417-
4418-
4419-(17) Tangible personal property sold to a common
4420-carrier by rail or motor that receives the physical
4421-possession of the property in Illinois and that transports
4422-the property, or shares with another common carrier in the
4423-transportation of the property, out of Illinois on a
4424-standard uniform bill of lading showing the seller of the
4425-property as the shipper or consignor of the property to a
4426-destination outside Illinois, for use outside Illinois.
4427-(18) Legal tender, currency, medallions, or gold or
4428-silver coinage issued by the State of Illinois, the
4429-government of the United States of America, or the
4430-government of any foreign country, and bullion.
4431-(19) Until July 1, 2003, oil field exploration,
4432-drilling, and production equipment, including (i) rigs and
4433-parts of rigs, rotary rigs, cable tool rigs, and workover
4434-rigs, (ii) pipe and tubular goods, including casing and
4435-drill strings, (iii) pumps and pump-jack units, (iv)
4436-storage tanks and flow lines, (v) any individual
4437-replacement part for oil field exploration, drilling, and
4438-production equipment, and (vi) machinery and equipment
4439-purchased for lease; but excluding motor vehicles required
4440-to be registered under the Illinois Vehicle Code.
4441-(20) Photoprocessing machinery and equipment,
4442-including repair and replacement parts, both new and used,
4443-including that manufactured on special order, certified by
4444-the purchaser to be used primarily for photoprocessing,
4445-
4446-
4447-and including photoprocessing machinery and equipment
4448-purchased for lease.
4449-(21) Until July 1, 2028, coal and aggregate
4450-exploration, mining, off-highway hauling, processing,
4451-maintenance, and reclamation equipment, including
4452-replacement parts and equipment, and including equipment
4453-purchased for lease, but excluding motor vehicles required
4454-to be registered under the Illinois Vehicle Code. The
4455-changes made to this Section by Public Act 97-767 apply on
4456-and after July 1, 2003, but no claim for credit or refund
4457-is allowed on or after August 16, 2013 (the effective date
4458-of Public Act 98-456) for such taxes paid during the
4459-period beginning July 1, 2003 and ending on August 16,
4460-2013 (the effective date of Public Act 98-456).
4461-(22) Until June 30, 2013, fuel and petroleum products
4462-sold to or used by an air carrier, certified by the carrier
4463-to be used for consumption, shipment, or storage in the
4464-conduct of its business as an air common carrier, for a
4465-flight destined for or returning from a location or
4466-locations outside the United States without regard to
4467-previous or subsequent domestic stopovers.
4468-Beginning July 1, 2013, fuel and petroleum products
4469-sold to or used by an air carrier, certified by the carrier
4470-to be used for consumption, shipment, or storage in the
4471-conduct of its business as an air common carrier, for a
4472-flight that (i) is engaged in foreign trade or is engaged
4473-
4474-
4475-in trade between the United States and any of its
4476-possessions and (ii) transports at least one individual or
4477-package for hire from the city of origination to the city
4478-of final destination on the same aircraft, without regard
4479-to a change in the flight number of that aircraft.
4480-(23) A transaction in which the purchase order is
4481-received by a florist who is located outside Illinois, but
4482-who has a florist located in Illinois deliver the property
4483-to the purchaser or the purchaser's donee in Illinois.
4484-(24) Fuel consumed or used in the operation of ships,
4485-barges, or vessels that are used primarily in or for the
4486-transportation of property or the conveyance of persons
4487-for hire on rivers bordering on this State if the fuel is
4488-delivered by the seller to the purchaser's barge, ship, or
4489-vessel while it is afloat upon that bordering river.
4490-(25) Except as provided in item (25-5) of this
4491-Section, a motor vehicle sold in this State to a
4492-nonresident even though the motor vehicle is delivered to
4493-the nonresident in this State, if the motor vehicle is not
4494-to be titled in this State, and if a drive-away permit is
4495-issued to the motor vehicle as provided in Section 3-603
4496-of the Illinois Vehicle Code or if the nonresident
4497-purchaser has vehicle registration plates to transfer to
4498-the motor vehicle upon returning to his or her home state.
4499-The issuance of the drive-away permit or having the
4500-out-of-state registration plates to be transferred is
4501-
4502-
4503-prima facie evidence that the motor vehicle will not be
4504-titled in this State.
4505-(25-5) The exemption under item (25) does not apply if
4506-the state in which the motor vehicle will be titled does
4507-not allow a reciprocal exemption for a motor vehicle sold
4508-and delivered in that state to an Illinois resident but
4509-titled in Illinois. The tax collected under this Act on
4510-the sale of a motor vehicle in this State to a resident of
4511-another state that does not allow a reciprocal exemption
4512-shall be imposed at a rate equal to the state's rate of tax
4513-on taxable property in the state in which the purchaser is
4514-a resident, except that the tax shall not exceed the tax
4515-that would otherwise be imposed under this Act. At the
4516-time of the sale, the purchaser shall execute a statement,
4517-signed under penalty of perjury, of his or her intent to
4518-title the vehicle in the state in which the purchaser is a
4519-resident within 30 days after the sale and of the fact of
4520-the payment to the State of Illinois of tax in an amount
4521-equivalent to the state's rate of tax on taxable property
4522-in his or her state of residence and shall submit the
4523-statement to the appropriate tax collection agency in his
4524-or her state of residence. In addition, the retailer must
4525-retain a signed copy of the statement in his or her
4526-records. Nothing in this item shall be construed to
4527-require the removal of the vehicle from this state
4528-following the filing of an intent to title the vehicle in
4529-
4530-
4531-the purchaser's state of residence if the purchaser titles
4532-the vehicle in his or her state of residence within 30 days
4533-after the date of sale. The tax collected under this Act in
4534-accordance with this item (25-5) shall be proportionately
4535-distributed as if the tax were collected at the 6.25%
4536-general rate imposed under this Act.
4537-(25-7) Beginning on July 1, 2007, no tax is imposed
4538-under this Act on the sale of an aircraft, as defined in
4539-Section 3 of the Illinois Aeronautics Act, if all of the
4540-following conditions are met:
4541-(1) the aircraft leaves this State within 15 days
4542-after the later of either the issuance of the final
4543-billing for the sale of the aircraft, or the
4544-authorized approval for return to service, completion
4545-of the maintenance record entry, and completion of the
4546-test flight and ground test for inspection, as
4547-required by 14 CFR 91.407;
4548-(2) the aircraft is not based or registered in
4549-this State after the sale of the aircraft; and
4550-(3) the seller retains in his or her books and
4551-records and provides to the Department a signed and
4552-dated certification from the purchaser, on a form
4553-prescribed by the Department, certifying that the
4554-requirements of this item (25-7) are met. The
4555-certificate must also include the name and address of
4556-the purchaser, the address of the location where the
4557-
4558-
4559-aircraft is to be titled or registered, the address of
4560-the primary physical location of the aircraft, and
4561-other information that the Department may reasonably
4562-require.
4563-For purposes of this item (25-7):
4564-"Based in this State" means hangared, stored, or
4565-otherwise used, excluding post-sale customizations as
4566-defined in this Section, for 10 or more days in each
4567-12-month period immediately following the date of the sale
4568-of the aircraft.
4569-"Registered in this State" means an aircraft
4570-registered with the Department of Transportation,
4571-Aeronautics Division, or titled or registered with the
4572-Federal Aviation Administration to an address located in
4573-this State.
4574-This paragraph (25-7) is exempt from the provisions of
4575-Section 2-70.
4576-(26) Semen used for artificial insemination of
4577-livestock for direct agricultural production.
4578-(27) Horses, or interests in horses, registered with
4579-and meeting the requirements of any of the Arabian Horse
4580-Club Registry of America, Appaloosa Horse Club, American
4581-Quarter Horse Association, United States Trotting
4582-Association, or Jockey Club, as appropriate, used for
4583-purposes of breeding or racing for prizes. This item (27)
4584-is exempt from the provisions of Section 2-70, and the
4585-
4586-
4587-exemption provided for under this item (27) applies for
4588-all periods beginning May 30, 1995, but no claim for
4589-credit or refund is allowed on or after January 1, 2008
4590-(the effective date of Public Act 95-88) for such taxes
4591-paid during the period beginning May 30, 2000 and ending
4592-on January 1, 2008 (the effective date of Public Act
4593-95-88).
4594-(28) Computers and communications equipment utilized
4595-for any hospital purpose and equipment used in the
4596-diagnosis, analysis, or treatment of hospital patients
4597-sold to a lessor who leases the equipment, under a lease of
4598-one year or longer executed or in effect at the time of the
4599-purchase, to a hospital that has been issued an active tax
4600-exemption identification number by the Department under
4601-Section 1g of this Act.
4602-(29) Personal property sold to a lessor who leases the
4603-property, under a lease of one year or longer executed or
4604-in effect at the time of the purchase, to a governmental
4605-body that has been issued an active tax exemption
4606-identification number by the Department under Section 1g
4607-of this Act.
4608-(30) Beginning with taxable years ending on or after
4609-December 31, 1995 and ending with taxable years ending on
4610-or before December 31, 2004, personal property that is
4611-donated for disaster relief to be used in a State or
4612-federally declared disaster area in Illinois or bordering
4613-
4614-
4615-Illinois by a manufacturer or retailer that is registered
4616-in this State to a corporation, society, association,
4617-foundation, or institution that has been issued a sales
4618-tax exemption identification number by the Department that
4619-assists victims of the disaster who reside within the
4620-declared disaster area.
4621-(31) Beginning with taxable years ending on or after
4622-December 31, 1995 and ending with taxable years ending on
4623-or before December 31, 2004, personal property that is
4624-used in the performance of infrastructure repairs in this
4625-State, including, but not limited to, municipal roads and
4626-streets, access roads, bridges, sidewalks, waste disposal
4627-systems, water and sewer line extensions, water
4628-distribution and purification facilities, storm water
4629-drainage and retention facilities, and sewage treatment
4630-facilities, resulting from a State or federally declared
4631-disaster in Illinois or bordering Illinois when such
4632-repairs are initiated on facilities located in the
4633-declared disaster area within 6 months after the disaster.
4634-(32) Beginning July 1, 1999, game or game birds sold
4635-at a "game breeding and hunting preserve area" as that
4636-term is used in the Wildlife Code. This paragraph is
4637-exempt from the provisions of Section 2-70.
4638-(33) A motor vehicle, as that term is defined in
4639-Section 1-146 of the Illinois Vehicle Code, that is
4640-donated to a corporation, limited liability company,
4641-
4642-
4643-society, association, foundation, or institution that is
4644-determined by the Department to be organized and operated
4645-exclusively for educational purposes. For purposes of this
4646-exemption, "a corporation, limited liability company,
4647-society, association, foundation, or institution organized
4648-and operated exclusively for educational purposes" means
4649-all tax-supported public schools, private schools that
4650-offer systematic instruction in useful branches of
4651-learning by methods common to public schools and that
4652-compare favorably in their scope and intensity with the
4653-course of study presented in tax-supported schools, and
4654-vocational or technical schools or institutes organized
4655-and operated exclusively to provide a course of study of
4656-not less than 6 weeks duration and designed to prepare
4657-individuals to follow a trade or to pursue a manual,
4658-technical, mechanical, industrial, business, or commercial
4659-occupation.
4660-(34) Beginning January 1, 2000, personal property,
4661-including food, purchased through fundraising events for
4662-the benefit of a public or private elementary or secondary
4663-school, a group of those schools, or one or more school
4664-districts if the events are sponsored by an entity
4665-recognized by the school district that consists primarily
4666-of volunteers and includes parents and teachers of the
4667-school children. This paragraph does not apply to
4668-fundraising events (i) for the benefit of private home
4669-
4670-
4671-instruction or (ii) for which the fundraising entity
4672-purchases the personal property sold at the events from
4673-another individual or entity that sold the property for
4674-the purpose of resale by the fundraising entity and that
4675-profits from the sale to the fundraising entity. This
4676-paragraph is exempt from the provisions of Section 2-70.
4677-(35) Beginning January 1, 2000 and through December
4678-31, 2001, new or used automatic vending machines that
4679-prepare and serve hot food and beverages, including
4680-coffee, soup, and other items, and replacement parts for
4681-these machines. Beginning January 1, 2002 and through June
4682-30, 2003, machines and parts for machines used in
4683-commercial, coin-operated amusement and vending business
4684-if a use or occupation tax is paid on the gross receipts
4685-derived from the use of the commercial, coin-operated
4686-amusement and vending machines. This paragraph is exempt
4687-from the provisions of Section 2-70.
4688-(35-5) Beginning August 23, 2001 and through June 30,
4689-2016, food for human consumption that is to be consumed
4690-off the premises where it is sold (other than alcoholic
4691-beverages, soft drinks, and food that has been prepared
4692-for immediate consumption) and prescription and
4693-nonprescription medicines, drugs, medical appliances, and
4694-insulin, urine testing materials, syringes, and needles
4695-used by diabetics, for human use, when purchased for use
4696-by a person receiving medical assistance under Article V
4697-
4698-
4699-of the Illinois Public Aid Code who resides in a licensed
4700-long-term care facility, as defined in the Nursing Home
4701-Care Act, or a licensed facility as defined in the ID/DD
4702-Community Care Act, the MC/DD Act, or the Specialized
4703-Mental Health Rehabilitation Act of 2013.
4704-(36) Beginning August 2, 2001, computers and
4705-communications equipment utilized for any hospital purpose
4706-and equipment used in the diagnosis, analysis, or
4707-treatment of hospital patients sold to a lessor who leases
4708-the equipment, under a lease of one year or longer
4709-executed or in effect at the time of the purchase, to a
4710-hospital that has been issued an active tax exemption
4711-identification number by the Department under Section 1g
4712-of this Act. This paragraph is exempt from the provisions
4713-of Section 2-70.
4714-(37) Beginning August 2, 2001, personal property sold
4715-to a lessor who leases the property, under a lease of one
4716-year or longer executed or in effect at the time of the
4717-purchase, to a governmental body that has been issued an
4718-active tax exemption identification number by the
4719-Department under Section 1g of this Act. This paragraph is
4720-exempt from the provisions of Section 2-70.
4721-(38) Beginning on January 1, 2002 and through June 30,
4722-2016, tangible personal property purchased from an
4723-Illinois retailer by a taxpayer engaged in centralized
4724-purchasing activities in Illinois who will, upon receipt
4725-
4726-
4727-of the property in Illinois, temporarily store the
4728-property in Illinois (i) for the purpose of subsequently
4729-transporting it outside this State for use or consumption
4730-thereafter solely outside this State or (ii) for the
4731-purpose of being processed, fabricated, or manufactured
4732-into, attached to, or incorporated into other tangible
4733-personal property to be transported outside this State and
4734-thereafter used or consumed solely outside this State. The
4735-Director of Revenue shall, pursuant to rules adopted in
4736-accordance with the Illinois Administrative Procedure Act,
4737-issue a permit to any taxpayer in good standing with the
4738-Department who is eligible for the exemption under this
4739-paragraph (38). The permit issued under this paragraph
4740-(38) shall authorize the holder, to the extent and in the
4741-manner specified in the rules adopted under this Act, to
4742-purchase tangible personal property from a retailer exempt
4743-from the taxes imposed by this Act. Taxpayers shall
4744-maintain all necessary books and records to substantiate
4745-the use and consumption of all such tangible personal
4746-property outside of the State of Illinois.
4747-(39) Beginning January 1, 2008, tangible personal
4748-property used in the construction or maintenance of a
4749-community water supply, as defined under Section 3.145 of
4750-the Environmental Protection Act, that is operated by a
4751-not-for-profit corporation that holds a valid water supply
4752-permit issued under Title IV of the Environmental
4753-
4754-
4755-Protection Act. This paragraph is exempt from the
4756-provisions of Section 2-70.
4757-(40) Beginning January 1, 2010 and continuing through
4758-December 31, 2029, materials, parts, equipment,
4759-components, and furnishings incorporated into or upon an
4760-aircraft as part of the modification, refurbishment,
4761-completion, replacement, repair, or maintenance of the
4762-aircraft. This exemption includes consumable supplies used
4763-in the modification, refurbishment, completion,
4764-replacement, repair, and maintenance of aircraft. However,
4765-until January 1, 2024, this exemption excludes any
4766-materials, parts, equipment, components, and consumable
4767-supplies used in the modification, replacement, repair,
4768-and maintenance of aircraft engines or power plants,
4769-whether such engines or power plants are installed or
4770-uninstalled upon any such aircraft. "Consumable supplies"
4771-include, but are not limited to, adhesive, tape,
4772-sandpaper, general purpose lubricants, cleaning solution,
4773-latex gloves, and protective films.
4774-Beginning January 1, 2010 and continuing through
4775-December 31, 2023, this exemption applies only to the sale
4776-of qualifying tangible personal property to persons who
4777-modify, refurbish, complete, replace, or maintain an
4778-aircraft and who (i) hold an Air Agency Certificate and
4779-are empowered to operate an approved repair station by the
4780-Federal Aviation Administration, (ii) have a Class IV
4781-
4782-
4783-Rating, and (iii) conduct operations in accordance with
4784-Part 145 of the Federal Aviation Regulations. The
4785-exemption does not include aircraft operated by a
4786-commercial air carrier providing scheduled passenger air
4787-service pursuant to authority issued under Part 121 or
4788-Part 129 of the Federal Aviation Regulations. From January
4789-1, 2024 through December 31, 2029, this exemption applies
4790-only to the use of qualifying tangible personal property
4791-by: (A) persons who modify, refurbish, complete, repair,
4792-replace, or maintain aircraft and who (i) hold an Air
4793-Agency Certificate and are empowered to operate an
4794-approved repair station by the Federal Aviation
4795-Administration, (ii) have a Class IV Rating, and (iii)
4796-conduct operations in accordance with Part 145 of the
4797-Federal Aviation Regulations; and (B) persons who engage
4798-in the modification, replacement, repair, and maintenance
4799-of aircraft engines or power plants without regard to
4800-whether or not those persons meet the qualifications of
4801-item (A).
4802-The changes made to this paragraph (40) by Public Act
4803-98-534 are declarative of existing law. It is the intent
4804-of the General Assembly that the exemption under this
4805-paragraph (40) applies continuously from January 1, 2010
4806-through December 31, 2024; however, no claim for credit or
4807-refund is allowed for taxes paid as a result of the
4808-disallowance of this exemption on or after January 1, 2015
4809-
4810-
4811-and prior to February 5, 2020 (the effective date of
4812-Public Act 101-629).
4813-(41) Tangible personal property sold to a
4814-public-facilities corporation, as described in Section
4815-11-65-10 of the Illinois Municipal Code, for purposes of
4816-constructing or furnishing a municipal convention hall,
4817-but only if the legal title to the municipal convention
4818-hall is transferred to the municipality without any
4819-further consideration by or on behalf of the municipality
4820-at the time of the completion of the municipal convention
4821-hall or upon the retirement or redemption of any bonds or
4822-other debt instruments issued by the public-facilities
4823-corporation in connection with the development of the
4824-municipal convention hall. This exemption includes
4825-existing public-facilities corporations as provided in
4826-Section 11-65-25 of the Illinois Municipal Code. This
4827-paragraph is exempt from the provisions of Section 2-70.
4828-(42) Beginning January 1, 2017 and through December
4829-31, 2026, menstrual pads, tampons, and menstrual cups.
4830-(43) Merchandise that is subject to the Rental
4831-Purchase Agreement Occupation and Use Tax. The purchaser
4832-must certify that the item is purchased to be rented
4833-subject to a rental-purchase rental purchase agreement, as
4834-defined in the Rental-Purchase Rental Purchase Agreement
4835-Act, and provide proof of registration under the Rental
4836-Purchase Agreement Occupation and Use Tax Act. This
4837-
4838-
4839-paragraph is exempt from the provisions of Section 2-70.
4840-(44) Qualified tangible personal property used in the
4841-construction or operation of a data center that has been
4842-granted a certificate of exemption by the Department of
4843-Commerce and Economic Opportunity, whether that tangible
4844-personal property is purchased by the owner, operator, or
4845-tenant of the data center or by a contractor or
4846-subcontractor of the owner, operator, or tenant. Data
4847-centers that would have qualified for a certificate of
4848-exemption prior to January 1, 2020 had Public Act 101-31
4849-been in effect, may apply for and obtain an exemption for
4850-subsequent purchases of computer equipment or enabling
4851-software purchased or leased to upgrade, supplement, or
4852-replace computer equipment or enabling software purchased
4853-or leased in the original investment that would have
4854-qualified.
4855-The Department of Commerce and Economic Opportunity
4856-shall grant a certificate of exemption under this item
4857-(44) to qualified data centers as defined by Section
4858-605-1025 of the Department of Commerce and Economic
4859-Opportunity Law of the Civil Administrative Code of
4860-Illinois.
4861-For the purposes of this item (44):
4862-"Data center" means a building or a series of
4863-buildings rehabilitated or constructed to house
4864-working servers in one physical location or multiple
4865-
4866-
4867-sites within the State of Illinois.
4868-"Qualified tangible personal property" means:
4869-electrical systems and equipment; climate control and
4870-chilling equipment and systems; mechanical systems and
4871-equipment; monitoring and secure systems; emergency
4872-generators; hardware; computers; servers; data storage
4873-devices; network connectivity equipment; racks;
4874-cabinets; telecommunications cabling infrastructure;
4875-raised floor systems; peripheral components or
4876-systems; software; mechanical, electrical, or plumbing
4877-systems; battery systems; cooling systems and towers;
4878-temperature control systems; other cabling; and other
4879-data center infrastructure equipment and systems
4880-necessary to operate qualified tangible personal
4881-property, including fixtures; and component parts of
4882-any of the foregoing, including installation,
4883-maintenance, repair, refurbishment, and replacement of
4884-qualified tangible personal property to generate,
4885-transform, transmit, distribute, or manage electricity
4886-necessary to operate qualified tangible personal
4887-property; and all other tangible personal property
4888-that is essential to the operations of a computer data
4889-center. The term "qualified tangible personal
4890-property" also includes building materials physically
4891-incorporated into the qualifying data center. To
4892-document the exemption allowed under this Section, the
4893-
4894-
4895-retailer must obtain from the purchaser a copy of the
4896-certificate of eligibility issued by the Department of
4897-Commerce and Economic Opportunity.
4898-This item (44) is exempt from the provisions of
4899-Section 2-70.
4900-(45) Beginning January 1, 2020 and through December
4901-31, 2020, sales of tangible personal property made by a
4902-marketplace seller over a marketplace for which tax is due
4903-under this Act but for which use tax has been collected and
4904-remitted to the Department by a marketplace facilitator
4905-under Section 2d of the Use Tax Act are exempt from tax
4906-under this Act. A marketplace seller claiming this
4907-exemption shall maintain books and records demonstrating
4908-that the use tax on such sales has been collected and
4909-remitted by a marketplace facilitator. Marketplace sellers
4910-that have properly remitted tax under this Act on such
4911-sales may file a claim for credit as provided in Section 6
4912-of this Act. No claim is allowed, however, for such taxes
4913-for which a credit or refund has been issued to the
4914-marketplace facilitator under the Use Tax Act, or for
4915-which the marketplace facilitator has filed a claim for
4916-credit or refund under the Use Tax Act.
4917-(46) Beginning July 1, 2022, breast pumps, breast pump
4918-collection and storage supplies, and breast pump kits.
4919-This item (46) is exempt from the provisions of Section
4920-2-70. As used in this item (46):
4921-
4922-
4923-"Breast pump" means an electrically controlled or
4924-manually controlled pump device designed or marketed to be
4925-used to express milk from a human breast during lactation,
4926-including the pump device and any battery, AC adapter, or
4927-other power supply unit that is used to power the pump
4928-device and is packaged and sold with the pump device at the
4929-time of sale.
4930-"Breast pump collection and storage supplies" means
4931-items of tangible personal property designed or marketed
4932-to be used in conjunction with a breast pump to collect
4933-milk expressed from a human breast and to store collected
4934-milk until it is ready for consumption.
4935-"Breast pump collection and storage supplies"
4936-includes, but is not limited to: breast shields and breast
4937-shield connectors; breast pump tubes and tubing adapters;
4938-breast pump valves and membranes; backflow protectors and
4939-backflow protector adaptors; bottles and bottle caps
4940-specific to the operation of the breast pump; and breast
4941-milk storage bags.
4942-"Breast pump collection and storage supplies" does not
4943-include: (1) bottles and bottle caps not specific to the
4944-operation of the breast pump; (2) breast pump travel bags
4945-and other similar carrying accessories, including ice
4946-packs, labels, and other similar products; (3) breast pump
4947-cleaning supplies; (4) nursing bras, bra pads, breast
4948-shells, and other similar products; and (5) creams,
4949-
4950-
4951-ointments, and other similar products that relieve
4952-breastfeeding-related symptoms or conditions of the
4953-breasts or nipples, unless sold as part of a breast pump
4954-kit that is pre-packaged by the breast pump manufacturer
4955-or distributor.
4956-"Breast pump kit" means a kit that: (1) contains no
4957-more than a breast pump, breast pump collection and
4958-storage supplies, a rechargeable battery for operating the
4959-breast pump, a breastmilk cooler, bottle stands, ice
4960-packs, and a breast pump carrying case; and (2) is
4961-pre-packaged as a breast pump kit by the breast pump
4962-manufacturer or distributor.
4963-(47) Tangible personal property sold by or on behalf
4964-of the State Treasurer pursuant to the Revised Uniform
4965-Unclaimed Property Act. This item (47) is exempt from the
4966-provisions of Section 2-70.
4967-(48) Beginning on January 1, 2024, tangible personal
4968-property purchased by an active duty member of the armed
4969-forces of the United States who presents valid military
4970-identification and purchases the property using a form of
4971-payment where the federal government is the payor. The
4972-member of the armed forces must complete, at the point of
4973-sale, a form prescribed by the Department of Revenue
4974-documenting that the transaction is eligible for the
4975-exemption under this paragraph. Retailers must keep the
4976-form as documentation of the exemption in their records
4977-
4978-
4979-for a period of not less than 6 years. "Armed forces of the
4980-United States" means the United States Army, Navy, Air
4981-Force, Marine Corps, or Coast Guard. This paragraph is
4982-exempt from the provisions of Section 2-70.
4983-(49) Beginning July 1, 2024, home-delivered meals
4984-provided to Medicare or Medicaid recipients when payment
4985-is made by an intermediary, such as a Medicare
4986-Administrative Contractor, a Managed Care Organization, or
4987-a Medicare Advantage Organization, pursuant to a
4988-government contract. This paragraph (49) is exempt from
4989-the provisions of Section 2-70.
4990-(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
4991-102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
4992-Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
4993-5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
4994-5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
4995-6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
4996-9-26-23.)
4997-Section 95. No acceleration or delay. Where this Act makes
4998-changes in a statute that is represented in this Act by text
4999-that is not yet or no longer in effect (for example, a Section
5000-represented by multiple versions), the use of that text does
5001-not accelerate or delay the taking effect of (i) the changes
5002-made by this Act or (ii) provisions derived from any other
5003-Public Act.
32+SB3476 Enrolled- 2 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 2 - LRB103 34190 HLH 64013 b
33+ SB3476 Enrolled - 2 - LRB103 34190 HLH 64013 b
34+1 is organized and operated primarily for the presentation or
35+2 support of arts or cultural programming, activities, or
36+3 services. These organizations include, but are not limited to,
37+4 music and dramatic arts organizations such as symphony
38+5 orchestras and theatrical groups, arts and cultural service
39+6 organizations, local arts councils, visual arts organizations,
40+7 and media arts organizations. On and after July 1, 2001 (the
41+8 effective date of Public Act 92-35), however, an entity
42+9 otherwise eligible for this exemption shall not make tax-free
43+10 purchases unless it has an active identification number issued
44+11 by the Department.
45+12 (4) Personal property purchased by a governmental body, by
46+13 a corporation, society, association, foundation, or
47+14 institution organized and operated exclusively for charitable,
48+15 religious, or educational purposes, or by a not-for-profit
49+16 corporation, society, association, foundation, institution, or
50+17 organization that has no compensated officers or employees and
51+18 that is organized and operated primarily for the recreation of
52+19 persons 55 years of age or older. A limited liability company
53+20 may qualify for the exemption under this paragraph only if the
54+21 limited liability company is organized and operated
55+22 exclusively for educational purposes. On and after July 1,
56+23 1987, however, no entity otherwise eligible for this exemption
57+24 shall make tax-free purchases unless it has an active
58+25 exemption identification number issued by the Department.
59+26 (5) Until July 1, 2003, a passenger car that is a
60+
61+
62+
63+
64+
65+ SB3476 Enrolled - 2 - LRB103 34190 HLH 64013 b
66+
67+
68+SB3476 Enrolled- 3 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 3 - LRB103 34190 HLH 64013 b
69+ SB3476 Enrolled - 3 - LRB103 34190 HLH 64013 b
70+1 replacement vehicle to the extent that the purchase price of
71+2 the car is subject to the Replacement Vehicle Tax.
72+3 (6) Until July 1, 2003 and beginning again on September 1,
73+4 2004 through August 30, 2014, graphic arts machinery and
74+5 equipment, including repair and replacement parts, both new
75+6 and used, and including that manufactured on special order,
76+7 certified by the purchaser to be used primarily for graphic
77+8 arts production, and including machinery and equipment
78+9 purchased for lease. Equipment includes chemicals or chemicals
79+10 acting as catalysts but only if the chemicals or chemicals
80+11 acting as catalysts effect a direct and immediate change upon
81+12 a graphic arts product. Beginning on July 1, 2017, graphic
82+13 arts machinery and equipment is included in the manufacturing
83+14 and assembling machinery and equipment exemption under
84+15 paragraph (18).
85+16 (7) Farm chemicals.
86+17 (8) Legal tender, currency, medallions, or gold or silver
87+18 coinage issued by the State of Illinois, the government of the
88+19 United States of America, or the government of any foreign
89+20 country, and bullion.
90+21 (9) Personal property purchased from a teacher-sponsored
91+22 student organization affiliated with an elementary or
92+23 secondary school located in Illinois.
93+24 (10) A motor vehicle that is used for automobile renting,
94+25 as defined in the Automobile Renting Occupation and Use Tax
95+26 Act.
96+
97+
98+
99+
100+
101+ SB3476 Enrolled - 3 - LRB103 34190 HLH 64013 b
102+
103+
104+SB3476 Enrolled- 4 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 4 - LRB103 34190 HLH 64013 b
105+ SB3476 Enrolled - 4 - LRB103 34190 HLH 64013 b
106+1 (11) Farm machinery and equipment, both new and used,
107+2 including that manufactured on special order, certified by the
108+3 purchaser to be used primarily for production agriculture or
109+4 State or federal agricultural programs, including individual
110+5 replacement parts for the machinery and equipment, including
111+6 machinery and equipment purchased for lease, and including
112+7 implements of husbandry defined in Section 1-130 of the
113+8 Illinois Vehicle Code, farm machinery and agricultural
114+9 chemical and fertilizer spreaders, and nurse wagons required
115+10 to be registered under Section 3-809 of the Illinois Vehicle
116+11 Code, but excluding other motor vehicles required to be
117+12 registered under the Illinois Vehicle Code. Horticultural
118+13 polyhouses or hoop houses used for propagating, growing, or
119+14 overwintering plants shall be considered farm machinery and
120+15 equipment under this item (11). Agricultural chemical tender
121+16 tanks and dry boxes shall include units sold separately from a
122+17 motor vehicle required to be licensed and units sold mounted
123+18 on a motor vehicle required to be licensed if the selling price
124+19 of the tender is separately stated.
125+20 Farm machinery and equipment shall include precision
126+21 farming equipment that is installed or purchased to be
127+22 installed on farm machinery and equipment, including, but not
128+23 limited to, tractors, harvesters, sprayers, planters, seeders,
129+24 or spreaders. Precision farming equipment includes, but is not
130+25 limited to, soil testing sensors, computers, monitors,
131+26 software, global positioning and mapping systems, and other
132+
133+
134+
135+
136+
137+ SB3476 Enrolled - 4 - LRB103 34190 HLH 64013 b
138+
139+
140+SB3476 Enrolled- 5 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 5 - LRB103 34190 HLH 64013 b
141+ SB3476 Enrolled - 5 - LRB103 34190 HLH 64013 b
142+1 such equipment.
143+2 Farm machinery and equipment also includes computers,
144+3 sensors, software, and related equipment used primarily in the
145+4 computer-assisted operation of production agriculture
146+5 facilities, equipment, and activities such as, but not limited
147+6 to, the collection, monitoring, and correlation of animal and
148+7 crop data for the purpose of formulating animal diets and
149+8 agricultural chemicals.
150+9 Beginning on January 1, 2024, farm machinery and equipment
151+10 also includes electrical power generation equipment used
152+11 primarily for production agriculture.
153+12 This item (11) is exempt from the provisions of Section
154+13 3-90.
155+14 (12) Until June 30, 2013, fuel and petroleum products sold
156+15 to or used by an air common carrier, certified by the carrier
157+16 to be used for consumption, shipment, or storage in the
158+17 conduct of its business as an air common carrier, for a flight
159+18 destined for or returning from a location or locations outside
160+19 the United States without regard to previous or subsequent
161+20 domestic stopovers.
162+21 Beginning July 1, 2013, fuel and petroleum products sold
163+22 to or used by an air carrier, certified by the carrier to be
164+23 used for consumption, shipment, or storage in the conduct of
165+24 its business as an air common carrier, for a flight that (i) is
166+25 engaged in foreign trade or is engaged in trade between the
167+26 United States and any of its possessions and (ii) transports
168+
169+
170+
171+
172+
173+ SB3476 Enrolled - 5 - LRB103 34190 HLH 64013 b
174+
175+
176+SB3476 Enrolled- 6 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 6 - LRB103 34190 HLH 64013 b
177+ SB3476 Enrolled - 6 - LRB103 34190 HLH 64013 b
178+1 at least one individual or package for hire from the city of
179+2 origination to the city of final destination on the same
180+3 aircraft, without regard to a change in the flight number of
181+4 that aircraft.
182+5 (13) Proceeds of mandatory service charges separately
183+6 stated on customers' bills for the purchase and consumption of
184+7 food and beverages purchased at retail from a retailer, to the
185+8 extent that the proceeds of the service charge are in fact
186+9 turned over as tips or as a substitute for tips to the
187+10 employees who participate directly in preparing, serving,
188+11 hosting or cleaning up the food or beverage function with
189+12 respect to which the service charge is imposed.
190+13 (14) Until July 1, 2003, oil field exploration, drilling,
191+14 and production equipment, including (i) rigs and parts of
192+15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
193+16 pipe and tubular goods, including casing and drill strings,
194+17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
195+18 lines, (v) any individual replacement part for oil field
196+19 exploration, drilling, and production equipment, and (vi)
197+20 machinery and equipment purchased for lease; but excluding
198+21 motor vehicles required to be registered under the Illinois
199+22 Vehicle Code.
200+23 (15) Photoprocessing machinery and equipment, including
201+24 repair and replacement parts, both new and used, including
202+25 that manufactured on special order, certified by the purchaser
203+26 to be used primarily for photoprocessing, and including
204+
205+
206+
207+
208+
209+ SB3476 Enrolled - 6 - LRB103 34190 HLH 64013 b
210+
211+
212+SB3476 Enrolled- 7 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 7 - LRB103 34190 HLH 64013 b
213+ SB3476 Enrolled - 7 - LRB103 34190 HLH 64013 b
214+1 photoprocessing machinery and equipment purchased for lease.
215+2 (16) Until July 1, 2028, coal and aggregate exploration,
216+3 mining, off-highway hauling, processing, maintenance, and
217+4 reclamation equipment, including replacement parts and
218+5 equipment, and including equipment purchased for lease, but
219+6 excluding motor vehicles required to be registered under the
220+7 Illinois Vehicle Code. The changes made to this Section by
221+8 Public Act 97-767 apply on and after July 1, 2003, but no claim
222+9 for credit or refund is allowed on or after August 16, 2013
223+10 (the effective date of Public Act 98-456) for such taxes paid
224+11 during the period beginning July 1, 2003 and ending on August
225+12 16, 2013 (the effective date of Public Act 98-456).
226+13 (17) Until July 1, 2003, distillation machinery and
227+14 equipment, sold as a unit or kit, assembled or installed by the
228+15 retailer, certified by the user to be used only for the
229+16 production of ethyl alcohol that will be used for consumption
230+17 as motor fuel or as a component of motor fuel for the personal
231+18 use of the user, and not subject to sale or resale.
232+19 (18) Manufacturing and assembling machinery and equipment
233+20 used primarily in the process of manufacturing or assembling
234+21 tangible personal property for wholesale or retail sale or
235+22 lease, whether that sale or lease is made directly by the
236+23 manufacturer or by some other person, whether the materials
237+24 used in the process are owned by the manufacturer or some other
238+25 person, or whether that sale or lease is made apart from or as
239+26 an incident to the seller's engaging in the service occupation
240+
241+
242+
243+
244+
245+ SB3476 Enrolled - 7 - LRB103 34190 HLH 64013 b
246+
247+
248+SB3476 Enrolled- 8 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 8 - LRB103 34190 HLH 64013 b
249+ SB3476 Enrolled - 8 - LRB103 34190 HLH 64013 b
250+1 of producing machines, tools, dies, jigs, patterns, gauges, or
251+2 other similar items of no commercial value on special order
252+3 for a particular purchaser. The exemption provided by this
253+4 paragraph (18) includes production related tangible personal
254+5 property, as defined in Section 3-50, purchased on or after
255+6 July 1, 2019. The exemption provided by this paragraph (18)
256+7 does not include machinery and equipment used in (i) the
257+8 generation of electricity for wholesale or retail sale; (ii)
258+9 the generation or treatment of natural or artificial gas for
259+10 wholesale or retail sale that is delivered to customers
260+11 through pipes, pipelines, or mains; or (iii) the treatment of
261+12 water for wholesale or retail sale that is delivered to
262+13 customers through pipes, pipelines, or mains. The provisions
263+14 of Public Act 98-583 are declaratory of existing law as to the
264+15 meaning and scope of this exemption. Beginning on July 1,
265+16 2017, the exemption provided by this paragraph (18) includes,
266+17 but is not limited to, graphic arts machinery and equipment,
267+18 as defined in paragraph (6) of this Section.
268+19 (19) Personal property delivered to a purchaser or
269+20 purchaser's donee inside Illinois when the purchase order for
270+21 that personal property was received by a florist located
271+22 outside Illinois who has a florist located inside Illinois
272+23 deliver the personal property.
273+24 (20) Semen used for artificial insemination of livestock
274+25 for direct agricultural production.
275+26 (21) Horses, or interests in horses, registered with and
276+
277+
278+
279+
280+
281+ SB3476 Enrolled - 8 - LRB103 34190 HLH 64013 b
282+
283+
284+SB3476 Enrolled- 9 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 9 - LRB103 34190 HLH 64013 b
285+ SB3476 Enrolled - 9 - LRB103 34190 HLH 64013 b
286+1 meeting the requirements of any of the Arabian Horse Club
287+2 Registry of America, Appaloosa Horse Club, American Quarter
288+3 Horse Association, United States Trotting Association, or
289+4 Jockey Club, as appropriate, used for purposes of breeding or
290+5 racing for prizes. This item (21) is exempt from the
291+6 provisions of Section 3-90, and the exemption provided for
292+7 under this item (21) applies for all periods beginning May 30,
293+8 1995, but no claim for credit or refund is allowed on or after
294+9 January 1, 2008 for such taxes paid during the period
295+10 beginning May 30, 2000 and ending on January 1, 2008.
296+11 (22) Computers and communications equipment utilized for
297+12 any hospital purpose and equipment used in the diagnosis,
298+13 analysis, or treatment of hospital patients purchased by a
299+14 lessor who leases the equipment, under a lease of one year or
300+15 longer executed or in effect at the time the lessor would
301+16 otherwise be subject to the tax imposed by this Act, to a
302+17 hospital that has been issued an active tax exemption
303+18 identification number by the Department under Section 1g of
304+19 the Retailers' Occupation Tax Act. If the equipment is leased
305+20 in a manner that does not qualify for this exemption or is used
306+21 in any other non-exempt manner, the lessor shall be liable for
307+22 the tax imposed under this Act or the Service Use Tax Act, as
308+23 the case may be, based on the fair market value of the property
309+24 at the time the non-qualifying use occurs. No lessor shall
310+25 collect or attempt to collect an amount (however designated)
311+26 that purports to reimburse that lessor for the tax imposed by
312+
313+
314+
315+
316+
317+ SB3476 Enrolled - 9 - LRB103 34190 HLH 64013 b
318+
319+
320+SB3476 Enrolled- 10 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 10 - LRB103 34190 HLH 64013 b
321+ SB3476 Enrolled - 10 - LRB103 34190 HLH 64013 b
322+1 this Act or the Service Use Tax Act, as the case may be, if the
323+2 tax has not been paid by the lessor. If a lessor improperly
324+3 collects any such amount from the lessee, the lessee shall
325+4 have a legal right to claim a refund of that amount from the
326+5 lessor. If, however, that amount is not refunded to the lessee
327+6 for any reason, the lessor is liable to pay that amount to the
328+7 Department.
329+8 (23) Personal property purchased by a lessor who leases
330+9 the property, under a lease of one year or longer executed or
331+10 in effect at the time the lessor would otherwise be subject to
332+11 the tax imposed by this Act, to a governmental body that has
333+12 been issued an active sales tax exemption identification
334+13 number by the Department under Section 1g of the Retailers'
335+14 Occupation Tax Act. If the property is leased in a manner that
336+15 does not qualify for this exemption or used in any other
337+16 non-exempt manner, the lessor shall be liable for the tax
338+17 imposed under this Act or the Service Use Tax Act, as the case
339+18 may be, based on the fair market value of the property at the
340+19 time the non-qualifying use occurs. No lessor shall collect or
341+20 attempt to collect an amount (however designated) that
342+21 purports to reimburse that lessor for the tax imposed by this
343+22 Act or the Service Use Tax Act, as the case may be, if the tax
344+23 has not been paid by the lessor. If a lessor improperly
345+24 collects any such amount from the lessee, the lessee shall
346+25 have a legal right to claim a refund of that amount from the
347+26 lessor. If, however, that amount is not refunded to the lessee
348+
349+
350+
351+
352+
353+ SB3476 Enrolled - 10 - LRB103 34190 HLH 64013 b
354+
355+
356+SB3476 Enrolled- 11 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 11 - LRB103 34190 HLH 64013 b
357+ SB3476 Enrolled - 11 - LRB103 34190 HLH 64013 b
358+1 for any reason, the lessor is liable to pay that amount to the
359+2 Department.
360+3 (24) Beginning with taxable years ending on or after
361+4 December 31, 1995 and ending with taxable years ending on or
362+5 before December 31, 2004, personal property that is donated
363+6 for disaster relief to be used in a State or federally declared
364+7 disaster area in Illinois or bordering Illinois by a
365+8 manufacturer or retailer that is registered in this State to a
366+9 corporation, society, association, foundation, or institution
367+10 that has been issued a sales tax exemption identification
368+11 number by the Department that assists victims of the disaster
369+12 who reside within the declared disaster area.
370+13 (25) Beginning with taxable years ending on or after
371+14 December 31, 1995 and ending with taxable years ending on or
372+15 before December 31, 2004, personal property that is used in
373+16 the performance of infrastructure repairs in this State,
374+17 including, but not limited to, municipal roads and streets,
375+18 access roads, bridges, sidewalks, waste disposal systems,
376+19 water and sewer line extensions, water distribution and
377+20 purification facilities, storm water drainage and retention
378+21 facilities, and sewage treatment facilities, resulting from a
379+22 State or federally declared disaster in Illinois or bordering
380+23 Illinois when such repairs are initiated on facilities located
381+24 in the declared disaster area within 6 months after the
382+25 disaster.
383+26 (26) Beginning July 1, 1999, game or game birds purchased
384+
385+
386+
387+
388+
389+ SB3476 Enrolled - 11 - LRB103 34190 HLH 64013 b
390+
391+
392+SB3476 Enrolled- 12 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 12 - LRB103 34190 HLH 64013 b
393+ SB3476 Enrolled - 12 - LRB103 34190 HLH 64013 b
394+1 at a "game breeding and hunting preserve area" as that term is
395+2 used in the Wildlife Code. This paragraph is exempt from the
396+3 provisions of Section 3-90.
397+4 (27) A motor vehicle, as that term is defined in Section
398+5 1-146 of the Illinois Vehicle Code, that is donated to a
399+6 corporation, limited liability company, society, association,
400+7 foundation, or institution that is determined by the
401+8 Department to be organized and operated exclusively for
402+9 educational purposes. For purposes of this exemption, "a
403+10 corporation, limited liability company, society, association,
404+11 foundation, or institution organized and operated exclusively
405+12 for educational purposes" means all tax-supported public
406+13 schools, private schools that offer systematic instruction in
407+14 useful branches of learning by methods common to public
408+15 schools and that compare favorably in their scope and
409+16 intensity with the course of study presented in tax-supported
410+17 schools, and vocational or technical schools or institutes
411+18 organized and operated exclusively to provide a course of
412+19 study of not less than 6 weeks duration and designed to prepare
413+20 individuals to follow a trade or to pursue a manual,
414+21 technical, mechanical, industrial, business, or commercial
415+22 occupation.
416+23 (28) Beginning January 1, 2000, personal property,
417+24 including food, purchased through fundraising events for the
418+25 benefit of a public or private elementary or secondary school,
419+26 a group of those schools, or one or more school districts if
420+
421+
422+
423+
424+
425+ SB3476 Enrolled - 12 - LRB103 34190 HLH 64013 b
426+
427+
428+SB3476 Enrolled- 13 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 13 - LRB103 34190 HLH 64013 b
429+ SB3476 Enrolled - 13 - LRB103 34190 HLH 64013 b
430+1 the events are sponsored by an entity recognized by the school
431+2 district that consists primarily of volunteers and includes
432+3 parents and teachers of the school children. This paragraph
433+4 does not apply to fundraising events (i) for the benefit of
434+5 private home instruction or (ii) for which the fundraising
435+6 entity purchases the personal property sold at the events from
436+7 another individual or entity that sold the property for the
437+8 purpose of resale by the fundraising entity and that profits
438+9 from the sale to the fundraising entity. This paragraph is
439+10 exempt from the provisions of Section 3-90.
440+11 (29) Beginning January 1, 2000 and through December 31,
441+12 2001, new or used automatic vending machines that prepare and
442+13 serve hot food and beverages, including coffee, soup, and
443+14 other items, and replacement parts for these machines.
444+15 Beginning January 1, 2002 and through June 30, 2003, machines
445+16 and parts for machines used in commercial, coin-operated
446+17 amusement and vending business if a use or occupation tax is
447+18 paid on the gross receipts derived from the use of the
448+19 commercial, coin-operated amusement and vending machines. This
449+20 paragraph is exempt from the provisions of Section 3-90.
450+21 (30) Beginning January 1, 2001 and through June 30, 2016,
451+22 food for human consumption that is to be consumed off the
452+23 premises where it is sold (other than alcoholic beverages,
453+24 soft drinks, and food that has been prepared for immediate
454+25 consumption) and prescription and nonprescription medicines,
455+26 drugs, medical appliances, and insulin, urine testing
456+
457+
458+
459+
460+
461+ SB3476 Enrolled - 13 - LRB103 34190 HLH 64013 b
462+
463+
464+SB3476 Enrolled- 14 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 14 - LRB103 34190 HLH 64013 b
465+ SB3476 Enrolled - 14 - LRB103 34190 HLH 64013 b
466+1 materials, syringes, and needles used by diabetics, for human
467+2 use, when purchased for use by a person receiving medical
468+3 assistance under Article V of the Illinois Public Aid Code who
469+4 resides in a licensed long-term care facility, as defined in
470+5 the Nursing Home Care Act, or in a licensed facility as defined
471+6 in the ID/DD Community Care Act, the MC/DD Act, or the
472+7 Specialized Mental Health Rehabilitation Act of 2013.
473+8 (31) Beginning on August 2, 2001 (the effective date of
474+9 Public Act 92-227), computers and communications equipment
475+10 utilized for any hospital purpose and equipment used in the
476+11 diagnosis, analysis, or treatment of hospital patients
477+12 purchased by a lessor who leases the equipment, under a lease
478+13 of one year or longer executed or in effect at the time the
479+14 lessor would otherwise be subject to the tax imposed by this
480+15 Act, to a hospital that has been issued an active tax exemption
481+16 identification number by the Department under Section 1g of
482+17 the Retailers' Occupation Tax Act. If the equipment is leased
483+18 in a manner that does not qualify for this exemption or is used
484+19 in any other nonexempt manner, the lessor shall be liable for
485+20 the tax imposed under this Act or the Service Use Tax Act, as
486+21 the case may be, based on the fair market value of the property
487+22 at the time the nonqualifying use occurs. No lessor shall
488+23 collect or attempt to collect an amount (however designated)
489+24 that purports to reimburse that lessor for the tax imposed by
490+25 this Act or the Service Use Tax Act, as the case may be, if the
491+26 tax has not been paid by the lessor. If a lessor improperly
492+
493+
494+
495+
496+
497+ SB3476 Enrolled - 14 - LRB103 34190 HLH 64013 b
498+
499+
500+SB3476 Enrolled- 15 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 15 - LRB103 34190 HLH 64013 b
501+ SB3476 Enrolled - 15 - LRB103 34190 HLH 64013 b
502+1 collects any such amount from the lessee, the lessee shall
503+2 have a legal right to claim a refund of that amount from the
504+3 lessor. If, however, that amount is not refunded to the lessee
505+4 for any reason, the lessor is liable to pay that amount to the
506+5 Department. This paragraph is exempt from the provisions of
507+6 Section 3-90.
508+7 (32) Beginning on August 2, 2001 (the effective date of
509+8 Public Act 92-227), personal property purchased by a lessor
510+9 who leases the property, under a lease of one year or longer
511+10 executed or in effect at the time the lessor would otherwise be
512+11 subject to the tax imposed by this Act, to a governmental body
513+12 that has been issued an active sales tax exemption
514+13 identification number by the Department under Section 1g of
515+14 the Retailers' Occupation Tax Act. If the property is leased
516+15 in a manner that does not qualify for this exemption or used in
517+16 any other nonexempt manner, the lessor shall be liable for the
518+17 tax imposed under this Act or the Service Use Tax Act, as the
519+18 case may be, based on the fair market value of the property at
520+19 the time the nonqualifying use occurs. No lessor shall collect
521+20 or attempt to collect an amount (however designated) that
522+21 purports to reimburse that lessor for the tax imposed by this
523+22 Act or the Service Use Tax Act, as the case may be, if the tax
524+23 has not been paid by the lessor. If a lessor improperly
525+24 collects any such amount from the lessee, the lessee shall
526+25 have a legal right to claim a refund of that amount from the
527+26 lessor. If, however, that amount is not refunded to the lessee
528+
529+
530+
531+
532+
533+ SB3476 Enrolled - 15 - LRB103 34190 HLH 64013 b
534+
535+
536+SB3476 Enrolled- 16 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 16 - LRB103 34190 HLH 64013 b
537+ SB3476 Enrolled - 16 - LRB103 34190 HLH 64013 b
538+1 for any reason, the lessor is liable to pay that amount to the
539+2 Department. This paragraph is exempt from the provisions of
540+3 Section 3-90.
541+4 (33) On and after July 1, 2003 and through June 30, 2004,
542+5 the use in this State of motor vehicles of the second division
543+6 with a gross vehicle weight in excess of 8,000 pounds and that
544+7 are subject to the commercial distribution fee imposed under
545+8 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
546+9 July 1, 2004 and through June 30, 2005, the use in this State
547+10 of motor vehicles of the second division: (i) with a gross
548+11 vehicle weight rating in excess of 8,000 pounds; (ii) that are
549+12 subject to the commercial distribution fee imposed under
550+13 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
551+14 are primarily used for commercial purposes. Through June 30,
552+15 2005, this exemption applies to repair and replacement parts
553+16 added after the initial purchase of such a motor vehicle if
554+17 that motor vehicle is used in a manner that would qualify for
555+18 the rolling stock exemption otherwise provided for in this
556+19 Act. For purposes of this paragraph, the term "used for
557+20 commercial purposes" means the transportation of persons or
558+21 property in furtherance of any commercial or industrial
559+22 enterprise, whether for-hire or not.
560+23 (34) Beginning January 1, 2008, tangible personal property
561+24 used in the construction or maintenance of a community water
562+25 supply, as defined under Section 3.145 of the Environmental
563+26 Protection Act, that is operated by a not-for-profit
564+
565+
566+
567+
568+
569+ SB3476 Enrolled - 16 - LRB103 34190 HLH 64013 b
570+
571+
572+SB3476 Enrolled- 17 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 17 - LRB103 34190 HLH 64013 b
573+ SB3476 Enrolled - 17 - LRB103 34190 HLH 64013 b
574+1 corporation that holds a valid water supply permit issued
575+2 under Title IV of the Environmental Protection Act. This
576+3 paragraph is exempt from the provisions of Section 3-90.
577+4 (35) Beginning January 1, 2010 and continuing through
578+5 December 31, 2029, materials, parts, equipment, components,
579+6 and furnishings incorporated into or upon an aircraft as part
580+7 of the modification, refurbishment, completion, replacement,
581+8 repair, or maintenance of the aircraft. This exemption
582+9 includes consumable supplies used in the modification,
583+10 refurbishment, completion, replacement, repair, and
584+11 maintenance of aircraft. However, until January 1, 2024, this
585+12 exemption excludes any materials, parts, equipment,
586+13 components, and consumable supplies used in the modification,
587+14 replacement, repair, and maintenance of aircraft engines or
588+15 power plants, whether such engines or power plants are
589+16 installed or uninstalled upon any such aircraft. "Consumable
590+17 supplies" include, but are not limited to, adhesive, tape,
591+18 sandpaper, general purpose lubricants, cleaning solution,
592+19 latex gloves, and protective films.
593+20 Beginning January 1, 2010 and continuing through December
594+21 31, 2023, this exemption applies only to the use of qualifying
595+22 tangible personal property by persons who modify, refurbish,
596+23 complete, repair, replace, or maintain aircraft and who (i)
597+24 hold an Air Agency Certificate and are empowered to operate an
598+25 approved repair station by the Federal Aviation
599+26 Administration, (ii) have a Class IV Rating, and (iii) conduct
600+
601+
602+
603+
604+
605+ SB3476 Enrolled - 17 - LRB103 34190 HLH 64013 b
606+
607+
608+SB3476 Enrolled- 18 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 18 - LRB103 34190 HLH 64013 b
609+ SB3476 Enrolled - 18 - LRB103 34190 HLH 64013 b
610+1 operations in accordance with Part 145 of the Federal Aviation
611+2 Regulations. From January 1, 2024 through December 31, 2029,
612+3 this exemption applies only to the use of qualifying tangible
613+4 personal property by: (A) persons who modify, refurbish,
614+5 complete, repair, replace, or maintain aircraft and who (i)
615+6 hold an Air Agency Certificate and are empowered to operate an
616+7 approved repair station by the Federal Aviation
617+8 Administration, (ii) have a Class IV Rating, and (iii) conduct
618+9 operations in accordance with Part 145 of the Federal Aviation
619+10 Regulations; and (B) persons who engage in the modification,
620+11 replacement, repair, and maintenance of aircraft engines or
621+12 power plants without regard to whether or not those persons
622+13 meet the qualifications of item (A).
623+14 The exemption does not include aircraft operated by a
624+15 commercial air carrier providing scheduled passenger air
625+16 service pursuant to authority issued under Part 121 or Part
626+17 129 of the Federal Aviation Regulations. The changes made to
627+18 this paragraph (35) by Public Act 98-534 are declarative of
628+19 existing law. It is the intent of the General Assembly that the
629+20 exemption under this paragraph (35) applies continuously from
630+21 January 1, 2010 through December 31, 2024; however, no claim
631+22 for credit or refund is allowed for taxes paid as a result of
632+23 the disallowance of this exemption on or after January 1, 2015
633+24 and prior to February 5, 2020 (the effective date of Public Act
634+25 101-629).
635+26 (36) Tangible personal property purchased by a
636+
637+
638+
639+
640+
641+ SB3476 Enrolled - 18 - LRB103 34190 HLH 64013 b
642+
643+
644+SB3476 Enrolled- 19 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 19 - LRB103 34190 HLH 64013 b
645+ SB3476 Enrolled - 19 - LRB103 34190 HLH 64013 b
646+1 public-facilities corporation, as described in Section
647+2 11-65-10 of the Illinois Municipal Code, for purposes of
648+3 constructing or furnishing a municipal convention hall, but
649+4 only if the legal title to the municipal convention hall is
650+5 transferred to the municipality without any further
651+6 consideration by or on behalf of the municipality at the time
652+7 of the completion of the municipal convention hall or upon the
653+8 retirement or redemption of any bonds or other debt
654+9 instruments issued by the public-facilities corporation in
655+10 connection with the development of the municipal convention
656+11 hall. This exemption includes existing public-facilities
657+12 corporations as provided in Section 11-65-25 of the Illinois
658+13 Municipal Code. This paragraph is exempt from the provisions
659+14 of Section 3-90.
660+15 (37) Beginning January 1, 2017 and through December 31,
661+16 2026, menstrual pads, tampons, and menstrual cups.
662+17 (38) Merchandise that is subject to the Rental Purchase
663+18 Agreement Occupation and Use Tax. The purchaser must certify
664+19 that the item is purchased to be rented subject to a
665+20 rental-purchase rental purchase agreement, as defined in the
666+21 Rental-Purchase Rental Purchase Agreement Act, and provide
667+22 proof of registration under the Rental Purchase Agreement
668+23 Occupation and Use Tax Act. This paragraph is exempt from the
669+24 provisions of Section 3-90.
670+25 (39) Tangible personal property purchased by a purchaser
671+26 who is exempt from the tax imposed by this Act by operation of
672+
673+
674+
675+
676+
677+ SB3476 Enrolled - 19 - LRB103 34190 HLH 64013 b
678+
679+
680+SB3476 Enrolled- 20 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 20 - LRB103 34190 HLH 64013 b
681+ SB3476 Enrolled - 20 - LRB103 34190 HLH 64013 b
682+1 federal law. This paragraph is exempt from the provisions of
683+2 Section 3-90.
684+3 (40) Qualified tangible personal property used in the
685+4 construction or operation of a data center that has been
686+5 granted a certificate of exemption by the Department of
687+6 Commerce and Economic Opportunity, whether that tangible
688+7 personal property is purchased by the owner, operator, or
689+8 tenant of the data center or by a contractor or subcontractor
690+9 of the owner, operator, or tenant. Data centers that would
691+10 have qualified for a certificate of exemption prior to January
692+11 1, 2020 had Public Act 101-31 been in effect may apply for and
693+12 obtain an exemption for subsequent purchases of computer
694+13 equipment or enabling software purchased or leased to upgrade,
695+14 supplement, or replace computer equipment or enabling software
696+15 purchased or leased in the original investment that would have
697+16 qualified.
698+17 The Department of Commerce and Economic Opportunity shall
699+18 grant a certificate of exemption under this item (40) to
700+19 qualified data centers as defined by Section 605-1025 of the
701+20 Department of Commerce and Economic Opportunity Law of the
702+21 Civil Administrative Code of Illinois.
703+22 For the purposes of this item (40):
704+23 "Data center" means a building or a series of
705+24 buildings rehabilitated or constructed to house working
706+25 servers in one physical location or multiple sites within
707+26 the State of Illinois.
708+
709+
710+
711+
712+
713+ SB3476 Enrolled - 20 - LRB103 34190 HLH 64013 b
714+
715+
716+SB3476 Enrolled- 21 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 21 - LRB103 34190 HLH 64013 b
717+ SB3476 Enrolled - 21 - LRB103 34190 HLH 64013 b
718+1 "Qualified tangible personal property" means:
719+2 electrical systems and equipment; climate control and
720+3 chilling equipment and systems; mechanical systems and
721+4 equipment; monitoring and secure systems; emergency
722+5 generators; hardware; computers; servers; data storage
723+6 devices; network connectivity equipment; racks; cabinets;
724+7 telecommunications cabling infrastructure; raised floor
725+8 systems; peripheral components or systems; software;
726+9 mechanical, electrical, or plumbing systems; battery
727+10 systems; cooling systems and towers; temperature control
728+11 systems; other cabling; and other data center
729+12 infrastructure equipment and systems necessary to operate
730+13 qualified tangible personal property, including fixtures;
731+14 and component parts of any of the foregoing, including
732+15 installation, maintenance, repair, refurbishment, and
733+16 replacement of qualified tangible personal property to
734+17 generate, transform, transmit, distribute, or manage
735+18 electricity necessary to operate qualified tangible
736+19 personal property; and all other tangible personal
737+20 property that is essential to the operations of a computer
738+21 data center. The term "qualified tangible personal
739+22 property" also includes building materials physically
740+23 incorporated into in to the qualifying data center. To
741+24 document the exemption allowed under this Section, the
742+25 retailer must obtain from the purchaser a copy of the
743+26 certificate of eligibility issued by the Department of
744+
745+
746+
747+
748+
749+ SB3476 Enrolled - 21 - LRB103 34190 HLH 64013 b
750+
751+
752+SB3476 Enrolled- 22 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 22 - LRB103 34190 HLH 64013 b
753+ SB3476 Enrolled - 22 - LRB103 34190 HLH 64013 b
754+1 Commerce and Economic Opportunity.
755+2 This item (40) is exempt from the provisions of Section
756+3 3-90.
757+4 (41) Beginning July 1, 2022, breast pumps, breast pump
758+5 collection and storage supplies, and breast pump kits. This
759+6 item (41) is exempt from the provisions of Section 3-90. As
760+7 used in this item (41):
761+8 "Breast pump" means an electrically controlled or
762+9 manually controlled pump device designed or marketed to be
763+10 used to express milk from a human breast during lactation,
764+11 including the pump device and any battery, AC adapter, or
765+12 other power supply unit that is used to power the pump
766+13 device and is packaged and sold with the pump device at the
767+14 time of sale.
768+15 "Breast pump collection and storage supplies" means
769+16 items of tangible personal property designed or marketed
770+17 to be used in conjunction with a breast pump to collect
771+18 milk expressed from a human breast and to store collected
772+19 milk until it is ready for consumption.
773+20 "Breast pump collection and storage supplies"
774+21 includes, but is not limited to: breast shields and breast
775+22 shield connectors; breast pump tubes and tubing adapters;
776+23 breast pump valves and membranes; backflow protectors and
777+24 backflow protector adaptors; bottles and bottle caps
778+25 specific to the operation of the breast pump; and breast
779+26 milk storage bags.
780+
781+
782+
783+
784+
785+ SB3476 Enrolled - 22 - LRB103 34190 HLH 64013 b
786+
787+
788+SB3476 Enrolled- 23 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 23 - LRB103 34190 HLH 64013 b
789+ SB3476 Enrolled - 23 - LRB103 34190 HLH 64013 b
790+1 "Breast pump collection and storage supplies" does not
791+2 include: (1) bottles and bottle caps not specific to the
792+3 operation of the breast pump; (2) breast pump travel bags
793+4 and other similar carrying accessories, including ice
794+5 packs, labels, and other similar products; (3) breast pump
795+6 cleaning supplies; (4) nursing bras, bra pads, breast
796+7 shells, and other similar products; and (5) creams,
797+8 ointments, and other similar products that relieve
798+9 breastfeeding-related symptoms or conditions of the
799+10 breasts or nipples, unless sold as part of a breast pump
800+11 kit that is pre-packaged by the breast pump manufacturer
801+12 or distributor.
802+13 "Breast pump kit" means a kit that: (1) contains no
803+14 more than a breast pump, breast pump collection and
804+15 storage supplies, a rechargeable battery for operating the
805+16 breast pump, a breastmilk cooler, bottle stands, ice
806+17 packs, and a breast pump carrying case; and (2) is
807+18 pre-packaged as a breast pump kit by the breast pump
808+19 manufacturer or distributor.
809+20 (42) Tangible personal property sold by or on behalf of
810+21 the State Treasurer pursuant to the Revised Uniform Unclaimed
811+22 Property Act. This item (42) is exempt from the provisions of
812+23 Section 3-90.
813+24 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
814+25 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
815+26 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
816+
817+
818+
819+
820+
821+ SB3476 Enrolled - 23 - LRB103 34190 HLH 64013 b
822+
823+
824+SB3476 Enrolled- 24 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 24 - LRB103 34190 HLH 64013 b
825+ SB3476 Enrolled - 24 - LRB103 34190 HLH 64013 b
826+1 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
827+2 eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-12-23.)
828+3 (Text of Section after amendment by P.A. 103-384)
829+4 Sec. 3-5. Exemptions. Use of the following tangible
830+5 personal property is exempt from the tax imposed by this Act:
831+6 (1) Personal property purchased from a corporation,
832+7 society, association, foundation, institution, or
833+8 organization, other than a limited liability company, that is
834+9 organized and operated as a not-for-profit service enterprise
835+10 for the benefit of persons 65 years of age or older if the
836+11 personal property was not purchased by the enterprise for the
837+12 purpose of resale by the enterprise.
838+13 (2) Personal property purchased by a not-for-profit
839+14 Illinois county fair association for use in conducting,
840+15 operating, or promoting the county fair.
841+16 (3) Personal property purchased by a not-for-profit arts
842+17 or cultural organization that establishes, by proof required
843+18 by the Department by rule, that it has received an exemption
844+19 under Section 501(c)(3) of the Internal Revenue Code and that
845+20 is organized and operated primarily for the presentation or
846+21 support of arts or cultural programming, activities, or
847+22 services. These organizations include, but are not limited to,
848+23 music and dramatic arts organizations such as symphony
849+24 orchestras and theatrical groups, arts and cultural service
850+25 organizations, local arts councils, visual arts organizations,
851+
852+
853+
854+
855+
856+ SB3476 Enrolled - 24 - LRB103 34190 HLH 64013 b
857+
858+
859+SB3476 Enrolled- 25 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 25 - LRB103 34190 HLH 64013 b
860+ SB3476 Enrolled - 25 - LRB103 34190 HLH 64013 b
861+1 and media arts organizations. On and after July 1, 2001 (the
862+2 effective date of Public Act 92-35), however, an entity
863+3 otherwise eligible for this exemption shall not make tax-free
864+4 purchases unless it has an active identification number issued
865+5 by the Department.
866+6 (4) Except as otherwise provided in this Act, personal
867+7 property purchased by a governmental body, by a corporation,
868+8 society, association, foundation, or institution organized and
869+9 operated exclusively for charitable, religious, or educational
870+10 purposes, or by a not-for-profit corporation, society,
871+11 association, foundation, institution, or organization that has
872+12 no compensated officers or employees and that is organized and
873+13 operated primarily for the recreation of persons 55 years of
874+14 age or older. A limited liability company may qualify for the
875+15 exemption under this paragraph only if the limited liability
876+16 company is organized and operated exclusively for educational
877+17 purposes. On and after July 1, 1987, however, no entity
878+18 otherwise eligible for this exemption shall make tax-free
879+19 purchases unless it has an active exemption identification
880+20 number issued by the Department.
881+21 (5) Until July 1, 2003, a passenger car that is a
882+22 replacement vehicle to the extent that the purchase price of
883+23 the car is subject to the Replacement Vehicle Tax.
884+24 (6) Until July 1, 2003 and beginning again on September 1,
885+25 2004 through August 30, 2014, graphic arts machinery and
886+26 equipment, including repair and replacement parts, both new
887+
888+
889+
890+
891+
892+ SB3476 Enrolled - 25 - LRB103 34190 HLH 64013 b
893+
894+
895+SB3476 Enrolled- 26 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 26 - LRB103 34190 HLH 64013 b
896+ SB3476 Enrolled - 26 - LRB103 34190 HLH 64013 b
897+1 and used, and including that manufactured on special order,
898+2 certified by the purchaser to be used primarily for graphic
899+3 arts production, and including machinery and equipment
900+4 purchased for lease. Equipment includes chemicals or chemicals
901+5 acting as catalysts but only if the chemicals or chemicals
902+6 acting as catalysts effect a direct and immediate change upon
903+7 a graphic arts product. Beginning on July 1, 2017, graphic
904+8 arts machinery and equipment is included in the manufacturing
905+9 and assembling machinery and equipment exemption under
906+10 paragraph (18).
907+11 (7) Farm chemicals.
908+12 (8) Legal tender, currency, medallions, or gold or silver
909+13 coinage issued by the State of Illinois, the government of the
910+14 United States of America, or the government of any foreign
911+15 country, and bullion.
912+16 (9) Personal property purchased from a teacher-sponsored
913+17 student organization affiliated with an elementary or
914+18 secondary school located in Illinois.
915+19 (10) A motor vehicle that is used for automobile renting,
916+20 as defined in the Automobile Renting Occupation and Use Tax
917+21 Act.
918+22 (11) Farm machinery and equipment, both new and used,
919+23 including that manufactured on special order, certified by the
920+24 purchaser to be used primarily for production agriculture or
921+25 State or federal agricultural programs, including individual
922+26 replacement parts for the machinery and equipment, including
923+
924+
925+
926+
927+
928+ SB3476 Enrolled - 26 - LRB103 34190 HLH 64013 b
929+
930+
931+SB3476 Enrolled- 27 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 27 - LRB103 34190 HLH 64013 b
932+ SB3476 Enrolled - 27 - LRB103 34190 HLH 64013 b
933+1 machinery and equipment purchased for lease, and including
934+2 implements of husbandry defined in Section 1-130 of the
935+3 Illinois Vehicle Code, farm machinery and agricultural
936+4 chemical and fertilizer spreaders, and nurse wagons required
937+5 to be registered under Section 3-809 of the Illinois Vehicle
938+6 Code, but excluding other motor vehicles required to be
939+7 registered under the Illinois Vehicle Code. Horticultural
940+8 polyhouses or hoop houses used for propagating, growing, or
941+9 overwintering plants shall be considered farm machinery and
942+10 equipment under this item (11). Agricultural chemical tender
943+11 tanks and dry boxes shall include units sold separately from a
944+12 motor vehicle required to be licensed and units sold mounted
945+13 on a motor vehicle required to be licensed if the selling price
946+14 of the tender is separately stated.
947+15 Farm machinery and equipment shall include precision
948+16 farming equipment that is installed or purchased to be
949+17 installed on farm machinery and equipment, including, but not
950+18 limited to, tractors, harvesters, sprayers, planters, seeders,
951+19 or spreaders. Precision farming equipment includes, but is not
952+20 limited to, soil testing sensors, computers, monitors,
953+21 software, global positioning and mapping systems, and other
954+22 such equipment.
955+23 Farm machinery and equipment also includes computers,
956+24 sensors, software, and related equipment used primarily in the
957+25 computer-assisted operation of production agriculture
958+26 facilities, equipment, and activities such as, but not limited
959+
960+
961+
962+
963+
964+ SB3476 Enrolled - 27 - LRB103 34190 HLH 64013 b
965+
966+
967+SB3476 Enrolled- 28 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 28 - LRB103 34190 HLH 64013 b
968+ SB3476 Enrolled - 28 - LRB103 34190 HLH 64013 b
969+1 to, the collection, monitoring, and correlation of animal and
970+2 crop data for the purpose of formulating animal diets and
971+3 agricultural chemicals.
972+4 Beginning on January 1, 2024, farm machinery and equipment
973+5 also includes electrical power generation equipment used
974+6 primarily for production agriculture.
975+7 This item (11) is exempt from the provisions of Section
976+8 3-90.
977+9 (12) Until June 30, 2013, fuel and petroleum products sold
978+10 to or used by an air common carrier, certified by the carrier
979+11 to be used for consumption, shipment, or storage in the
980+12 conduct of its business as an air common carrier, for a flight
981+13 destined for or returning from a location or locations outside
982+14 the United States without regard to previous or subsequent
983+15 domestic stopovers.
984+16 Beginning July 1, 2013, fuel and petroleum products sold
985+17 to or used by an air carrier, certified by the carrier to be
986+18 used for consumption, shipment, or storage in the conduct of
987+19 its business as an air common carrier, for a flight that (i) is
988+20 engaged in foreign trade or is engaged in trade between the
989+21 United States and any of its possessions and (ii) transports
990+22 at least one individual or package for hire from the city of
991+23 origination to the city of final destination on the same
992+24 aircraft, without regard to a change in the flight number of
993+25 that aircraft.
994+26 (13) Proceeds of mandatory service charges separately
995+
996+
997+
998+
999+
1000+ SB3476 Enrolled - 28 - LRB103 34190 HLH 64013 b
1001+
1002+
1003+SB3476 Enrolled- 29 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 29 - LRB103 34190 HLH 64013 b
1004+ SB3476 Enrolled - 29 - LRB103 34190 HLH 64013 b
1005+1 stated on customers' bills for the purchase and consumption of
1006+2 food and beverages purchased at retail from a retailer, to the
1007+3 extent that the proceeds of the service charge are in fact
1008+4 turned over as tips or as a substitute for tips to the
1009+5 employees who participate directly in preparing, serving,
1010+6 hosting or cleaning up the food or beverage function with
1011+7 respect to which the service charge is imposed.
1012+8 (14) Until July 1, 2003, oil field exploration, drilling,
1013+9 and production equipment, including (i) rigs and parts of
1014+10 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1015+11 pipe and tubular goods, including casing and drill strings,
1016+12 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1017+13 lines, (v) any individual replacement part for oil field
1018+14 exploration, drilling, and production equipment, and (vi)
1019+15 machinery and equipment purchased for lease; but excluding
1020+16 motor vehicles required to be registered under the Illinois
1021+17 Vehicle Code.
1022+18 (15) Photoprocessing machinery and equipment, including
1023+19 repair and replacement parts, both new and used, including
1024+20 that manufactured on special order, certified by the purchaser
1025+21 to be used primarily for photoprocessing, and including
1026+22 photoprocessing machinery and equipment purchased for lease.
1027+23 (16) Until July 1, 2028, coal and aggregate exploration,
1028+24 mining, off-highway hauling, processing, maintenance, and
1029+25 reclamation equipment, including replacement parts and
1030+26 equipment, and including equipment purchased for lease, but
1031+
1032+
1033+
1034+
1035+
1036+ SB3476 Enrolled - 29 - LRB103 34190 HLH 64013 b
1037+
1038+
1039+SB3476 Enrolled- 30 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 30 - LRB103 34190 HLH 64013 b
1040+ SB3476 Enrolled - 30 - LRB103 34190 HLH 64013 b
1041+1 excluding motor vehicles required to be registered under the
1042+2 Illinois Vehicle Code. The changes made to this Section by
1043+3 Public Act 97-767 apply on and after July 1, 2003, but no claim
1044+4 for credit or refund is allowed on or after August 16, 2013
1045+5 (the effective date of Public Act 98-456) for such taxes paid
1046+6 during the period beginning July 1, 2003 and ending on August
1047+7 16, 2013 (the effective date of Public Act 98-456).
1048+8 (17) Until July 1, 2003, distillation machinery and
1049+9 equipment, sold as a unit or kit, assembled or installed by the
1050+10 retailer, certified by the user to be used only for the
1051+11 production of ethyl alcohol that will be used for consumption
1052+12 as motor fuel or as a component of motor fuel for the personal
1053+13 use of the user, and not subject to sale or resale.
1054+14 (18) Manufacturing and assembling machinery and equipment
1055+15 used primarily in the process of manufacturing or assembling
1056+16 tangible personal property for wholesale or retail sale or
1057+17 lease, whether that sale or lease is made directly by the
1058+18 manufacturer or by some other person, whether the materials
1059+19 used in the process are owned by the manufacturer or some other
1060+20 person, or whether that sale or lease is made apart from or as
1061+21 an incident to the seller's engaging in the service occupation
1062+22 of producing machines, tools, dies, jigs, patterns, gauges, or
1063+23 other similar items of no commercial value on special order
1064+24 for a particular purchaser. The exemption provided by this
1065+25 paragraph (18) includes production related tangible personal
1066+26 property, as defined in Section 3-50, purchased on or after
1067+
1068+
1069+
1070+
1071+
1072+ SB3476 Enrolled - 30 - LRB103 34190 HLH 64013 b
1073+
1074+
1075+SB3476 Enrolled- 31 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 31 - LRB103 34190 HLH 64013 b
1076+ SB3476 Enrolled - 31 - LRB103 34190 HLH 64013 b
1077+1 July 1, 2019. The exemption provided by this paragraph (18)
1078+2 does not include machinery and equipment used in (i) the
1079+3 generation of electricity for wholesale or retail sale; (ii)
1080+4 the generation or treatment of natural or artificial gas for
1081+5 wholesale or retail sale that is delivered to customers
1082+6 through pipes, pipelines, or mains; or (iii) the treatment of
1083+7 water for wholesale or retail sale that is delivered to
1084+8 customers through pipes, pipelines, or mains. The provisions
1085+9 of Public Act 98-583 are declaratory of existing law as to the
1086+10 meaning and scope of this exemption. Beginning on July 1,
1087+11 2017, the exemption provided by this paragraph (18) includes,
1088+12 but is not limited to, graphic arts machinery and equipment,
1089+13 as defined in paragraph (6) of this Section.
1090+14 (19) Personal property delivered to a purchaser or
1091+15 purchaser's donee inside Illinois when the purchase order for
1092+16 that personal property was received by a florist located
1093+17 outside Illinois who has a florist located inside Illinois
1094+18 deliver the personal property.
1095+19 (20) Semen used for artificial insemination of livestock
1096+20 for direct agricultural production.
1097+21 (21) Horses, or interests in horses, registered with and
1098+22 meeting the requirements of any of the Arabian Horse Club
1099+23 Registry of America, Appaloosa Horse Club, American Quarter
1100+24 Horse Association, United States Trotting Association, or
1101+25 Jockey Club, as appropriate, used for purposes of breeding or
1102+26 racing for prizes. This item (21) is exempt from the
1103+
1104+
1105+
1106+
1107+
1108+ SB3476 Enrolled - 31 - LRB103 34190 HLH 64013 b
1109+
1110+
1111+SB3476 Enrolled- 32 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 32 - LRB103 34190 HLH 64013 b
1112+ SB3476 Enrolled - 32 - LRB103 34190 HLH 64013 b
1113+1 provisions of Section 3-90, and the exemption provided for
1114+2 under this item (21) applies for all periods beginning May 30,
1115+3 1995, but no claim for credit or refund is allowed on or after
1116+4 January 1, 2008 for such taxes paid during the period
1117+5 beginning May 30, 2000 and ending on January 1, 2008.
1118+6 (22) Computers and communications equipment utilized for
1119+7 any hospital purpose and equipment used in the diagnosis,
1120+8 analysis, or treatment of hospital patients purchased by a
1121+9 lessor who leases the equipment, under a lease of one year or
1122+10 longer executed or in effect at the time the lessor would
1123+11 otherwise be subject to the tax imposed by this Act, to a
1124+12 hospital that has been issued an active tax exemption
1125+13 identification number by the Department under Section 1g of
1126+14 the Retailers' Occupation Tax Act. If the equipment is leased
1127+15 in a manner that does not qualify for this exemption or is used
1128+16 in any other non-exempt manner, the lessor shall be liable for
1129+17 the tax imposed under this Act or the Service Use Tax Act, as
1130+18 the case may be, based on the fair market value of the property
1131+19 at the time the non-qualifying use occurs. No lessor shall
1132+20 collect or attempt to collect an amount (however designated)
1133+21 that purports to reimburse that lessor for the tax imposed by
1134+22 this Act or the Service Use Tax Act, as the case may be, if the
1135+23 tax has not been paid by the lessor. If a lessor improperly
1136+24 collects any such amount from the lessee, the lessee shall
1137+25 have a legal right to claim a refund of that amount from the
1138+26 lessor. If, however, that amount is not refunded to the lessee
1139+
1140+
1141+
1142+
1143+
1144+ SB3476 Enrolled - 32 - LRB103 34190 HLH 64013 b
1145+
1146+
1147+SB3476 Enrolled- 33 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 33 - LRB103 34190 HLH 64013 b
1148+ SB3476 Enrolled - 33 - LRB103 34190 HLH 64013 b
1149+1 for any reason, the lessor is liable to pay that amount to the
1150+2 Department.
1151+3 (23) Personal property purchased by a lessor who leases
1152+4 the property, under a lease of one year or longer executed or
1153+5 in effect at the time the lessor would otherwise be subject to
1154+6 the tax imposed by this Act, to a governmental body that has
1155+7 been issued an active sales tax exemption identification
1156+8 number by the Department under Section 1g of the Retailers'
1157+9 Occupation Tax Act. If the property is leased in a manner that
1158+10 does not qualify for this exemption or used in any other
1159+11 non-exempt manner, the lessor shall be liable for the tax
1160+12 imposed under this Act or the Service Use Tax Act, as the case
1161+13 may be, based on the fair market value of the property at the
1162+14 time the non-qualifying use occurs. No lessor shall collect or
1163+15 attempt to collect an amount (however designated) that
1164+16 purports to reimburse that lessor for the tax imposed by this
1165+17 Act or the Service Use Tax Act, as the case may be, if the tax
1166+18 has not been paid by the lessor. If a lessor improperly
1167+19 collects any such amount from the lessee, the lessee shall
1168+20 have a legal right to claim a refund of that amount from the
1169+21 lessor. If, however, that amount is not refunded to the lessee
1170+22 for any reason, the lessor is liable to pay that amount to the
1171+23 Department.
1172+24 (24) Beginning with taxable years ending on or after
1173+25 December 31, 1995 and ending with taxable years ending on or
1174+26 before December 31, 2004, personal property that is donated
1175+
1176+
1177+
1178+
1179+
1180+ SB3476 Enrolled - 33 - LRB103 34190 HLH 64013 b
1181+
1182+
1183+SB3476 Enrolled- 34 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 34 - LRB103 34190 HLH 64013 b
1184+ SB3476 Enrolled - 34 - LRB103 34190 HLH 64013 b
1185+1 for disaster relief to be used in a State or federally declared
1186+2 disaster area in Illinois or bordering Illinois by a
1187+3 manufacturer or retailer that is registered in this State to a
1188+4 corporation, society, association, foundation, or institution
1189+5 that has been issued a sales tax exemption identification
1190+6 number by the Department that assists victims of the disaster
1191+7 who reside within the declared disaster area.
1192+8 (25) Beginning with taxable years ending on or after
1193+9 December 31, 1995 and ending with taxable years ending on or
1194+10 before December 31, 2004, personal property that is used in
1195+11 the performance of infrastructure repairs in this State,
1196+12 including, but not limited to, municipal roads and streets,
1197+13 access roads, bridges, sidewalks, waste disposal systems,
1198+14 water and sewer line extensions, water distribution and
1199+15 purification facilities, storm water drainage and retention
1200+16 facilities, and sewage treatment facilities, resulting from a
1201+17 State or federally declared disaster in Illinois or bordering
1202+18 Illinois when such repairs are initiated on facilities located
1203+19 in the declared disaster area within 6 months after the
1204+20 disaster.
1205+21 (26) Beginning July 1, 1999, game or game birds purchased
1206+22 at a "game breeding and hunting preserve area" as that term is
1207+23 used in the Wildlife Code. This paragraph is exempt from the
1208+24 provisions of Section 3-90.
1209+25 (27) A motor vehicle, as that term is defined in Section
1210+26 1-146 of the Illinois Vehicle Code, that is donated to a
1211+
1212+
1213+
1214+
1215+
1216+ SB3476 Enrolled - 34 - LRB103 34190 HLH 64013 b
1217+
1218+
1219+SB3476 Enrolled- 35 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 35 - LRB103 34190 HLH 64013 b
1220+ SB3476 Enrolled - 35 - LRB103 34190 HLH 64013 b
1221+1 corporation, limited liability company, society, association,
1222+2 foundation, or institution that is determined by the
1223+3 Department to be organized and operated exclusively for
1224+4 educational purposes. For purposes of this exemption, "a
1225+5 corporation, limited liability company, society, association,
1226+6 foundation, or institution organized and operated exclusively
1227+7 for educational purposes" means all tax-supported public
1228+8 schools, private schools that offer systematic instruction in
1229+9 useful branches of learning by methods common to public
1230+10 schools and that compare favorably in their scope and
1231+11 intensity with the course of study presented in tax-supported
1232+12 schools, and vocational or technical schools or institutes
1233+13 organized and operated exclusively to provide a course of
1234+14 study of not less than 6 weeks duration and designed to prepare
1235+15 individuals to follow a trade or to pursue a manual,
1236+16 technical, mechanical, industrial, business, or commercial
1237+17 occupation.
1238+18 (28) Beginning January 1, 2000, personal property,
1239+19 including food, purchased through fundraising events for the
1240+20 benefit of a public or private elementary or secondary school,
1241+21 a group of those schools, or one or more school districts if
1242+22 the events are sponsored by an entity recognized by the school
1243+23 district that consists primarily of volunteers and includes
1244+24 parents and teachers of the school children. This paragraph
1245+25 does not apply to fundraising events (i) for the benefit of
1246+26 private home instruction or (ii) for which the fundraising
1247+
1248+
1249+
1250+
1251+
1252+ SB3476 Enrolled - 35 - LRB103 34190 HLH 64013 b
1253+
1254+
1255+SB3476 Enrolled- 36 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 36 - LRB103 34190 HLH 64013 b
1256+ SB3476 Enrolled - 36 - LRB103 34190 HLH 64013 b
1257+1 entity purchases the personal property sold at the events from
1258+2 another individual or entity that sold the property for the
1259+3 purpose of resale by the fundraising entity and that profits
1260+4 from the sale to the fundraising entity. This paragraph is
1261+5 exempt from the provisions of Section 3-90.
1262+6 (29) Beginning January 1, 2000 and through December 31,
1263+7 2001, new or used automatic vending machines that prepare and
1264+8 serve hot food and beverages, including coffee, soup, and
1265+9 other items, and replacement parts for these machines.
1266+10 Beginning January 1, 2002 and through June 30, 2003, machines
1267+11 and parts for machines used in commercial, coin-operated
1268+12 amusement and vending business if a use or occupation tax is
1269+13 paid on the gross receipts derived from the use of the
1270+14 commercial, coin-operated amusement and vending machines. This
1271+15 paragraph is exempt from the provisions of Section 3-90.
1272+16 (30) Beginning January 1, 2001 and through June 30, 2016,
1273+17 food for human consumption that is to be consumed off the
1274+18 premises where it is sold (other than alcoholic beverages,
1275+19 soft drinks, and food that has been prepared for immediate
1276+20 consumption) and prescription and nonprescription medicines,
1277+21 drugs, medical appliances, and insulin, urine testing
1278+22 materials, syringes, and needles used by diabetics, for human
1279+23 use, when purchased for use by a person receiving medical
1280+24 assistance under Article V of the Illinois Public Aid Code who
1281+25 resides in a licensed long-term care facility, as defined in
1282+26 the Nursing Home Care Act, or in a licensed facility as defined
1283+
1284+
1285+
1286+
1287+
1288+ SB3476 Enrolled - 36 - LRB103 34190 HLH 64013 b
1289+
1290+
1291+SB3476 Enrolled- 37 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 37 - LRB103 34190 HLH 64013 b
1292+ SB3476 Enrolled - 37 - LRB103 34190 HLH 64013 b
1293+1 in the ID/DD Community Care Act, the MC/DD Act, or the
1294+2 Specialized Mental Health Rehabilitation Act of 2013.
1295+3 (31) Beginning on August 2, 2001 (the effective date of
1296+4 Public Act 92-227), computers and communications equipment
1297+5 utilized for any hospital purpose and equipment used in the
1298+6 diagnosis, analysis, or treatment of hospital patients
1299+7 purchased by a lessor who leases the equipment, under a lease
1300+8 of one year or longer executed or in effect at the time the
1301+9 lessor would otherwise be subject to the tax imposed by this
1302+10 Act, to a hospital that has been issued an active tax exemption
1303+11 identification number by the Department under Section 1g of
1304+12 the Retailers' Occupation Tax Act. If the equipment is leased
1305+13 in a manner that does not qualify for this exemption or is used
1306+14 in any other nonexempt manner, the lessor shall be liable for
1307+15 the tax imposed under this Act or the Service Use Tax Act, as
1308+16 the case may be, based on the fair market value of the property
1309+17 at the time the nonqualifying use occurs. No lessor shall
1310+18 collect or attempt to collect an amount (however designated)
1311+19 that purports to reimburse that lessor for the tax imposed by
1312+20 this Act or the Service Use Tax Act, as the case may be, if the
1313+21 tax has not been paid by the lessor. If a lessor improperly
1314+22 collects any such amount from the lessee, the lessee shall
1315+23 have a legal right to claim a refund of that amount from the
1316+24 lessor. If, however, that amount is not refunded to the lessee
1317+25 for any reason, the lessor is liable to pay that amount to the
1318+26 Department. This paragraph is exempt from the provisions of
1319+
1320+
1321+
1322+
1323+
1324+ SB3476 Enrolled - 37 - LRB103 34190 HLH 64013 b
1325+
1326+
1327+SB3476 Enrolled- 38 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 38 - LRB103 34190 HLH 64013 b
1328+ SB3476 Enrolled - 38 - LRB103 34190 HLH 64013 b
1329+1 Section 3-90.
1330+2 (32) Beginning on August 2, 2001 (the effective date of
1331+3 Public Act 92-227), personal property purchased by a lessor
1332+4 who leases the property, under a lease of one year or longer
1333+5 executed or in effect at the time the lessor would otherwise be
1334+6 subject to the tax imposed by this Act, to a governmental body
1335+7 that has been issued an active sales tax exemption
1336+8 identification number by the Department under Section 1g of
1337+9 the Retailers' Occupation Tax Act. If the property is leased
1338+10 in a manner that does not qualify for this exemption or used in
1339+11 any other nonexempt manner, the lessor shall be liable for the
1340+12 tax imposed under this Act or the Service Use Tax Act, as the
1341+13 case may be, based on the fair market value of the property at
1342+14 the time the nonqualifying use occurs. No lessor shall collect
1343+15 or attempt to collect an amount (however designated) that
1344+16 purports to reimburse that lessor for the tax imposed by this
1345+17 Act or the Service Use Tax Act, as the case may be, if the tax
1346+18 has not been paid by the lessor. If a lessor improperly
1347+19 collects any such amount from the lessee, the lessee shall
1348+20 have a legal right to claim a refund of that amount from the
1349+21 lessor. If, however, that amount is not refunded to the lessee
1350+22 for any reason, the lessor is liable to pay that amount to the
1351+23 Department. This paragraph is exempt from the provisions of
1352+24 Section 3-90.
1353+25 (33) On and after July 1, 2003 and through June 30, 2004,
1354+26 the use in this State of motor vehicles of the second division
1355+
1356+
1357+
1358+
1359+
1360+ SB3476 Enrolled - 38 - LRB103 34190 HLH 64013 b
1361+
1362+
1363+SB3476 Enrolled- 39 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 39 - LRB103 34190 HLH 64013 b
1364+ SB3476 Enrolled - 39 - LRB103 34190 HLH 64013 b
1365+1 with a gross vehicle weight in excess of 8,000 pounds and that
1366+2 are subject to the commercial distribution fee imposed under
1367+3 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
1368+4 July 1, 2004 and through June 30, 2005, the use in this State
1369+5 of motor vehicles of the second division: (i) with a gross
1370+6 vehicle weight rating in excess of 8,000 pounds; (ii) that are
1371+7 subject to the commercial distribution fee imposed under
1372+8 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
1373+9 are primarily used for commercial purposes. Through June 30,
1374+10 2005, this exemption applies to repair and replacement parts
1375+11 added after the initial purchase of such a motor vehicle if
1376+12 that motor vehicle is used in a manner that would qualify for
1377+13 the rolling stock exemption otherwise provided for in this
1378+14 Act. For purposes of this paragraph, the term "used for
1379+15 commercial purposes" means the transportation of persons or
1380+16 property in furtherance of any commercial or industrial
1381+17 enterprise, whether for-hire or not.
1382+18 (34) Beginning January 1, 2008, tangible personal property
1383+19 used in the construction or maintenance of a community water
1384+20 supply, as defined under Section 3.145 of the Environmental
1385+21 Protection Act, that is operated by a not-for-profit
1386+22 corporation that holds a valid water supply permit issued
1387+23 under Title IV of the Environmental Protection Act. This
1388+24 paragraph is exempt from the provisions of Section 3-90.
1389+25 (35) Beginning January 1, 2010 and continuing through
1390+26 December 31, 2029, materials, parts, equipment, components,
1391+
1392+
1393+
1394+
1395+
1396+ SB3476 Enrolled - 39 - LRB103 34190 HLH 64013 b
1397+
1398+
1399+SB3476 Enrolled- 40 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 40 - LRB103 34190 HLH 64013 b
1400+ SB3476 Enrolled - 40 - LRB103 34190 HLH 64013 b
1401+1 and furnishings incorporated into or upon an aircraft as part
1402+2 of the modification, refurbishment, completion, replacement,
1403+3 repair, or maintenance of the aircraft. This exemption
1404+4 includes consumable supplies used in the modification,
1405+5 refurbishment, completion, replacement, repair, and
1406+6 maintenance of aircraft. However, until January 1, 2024, this
1407+7 exemption excludes any materials, parts, equipment,
1408+8 components, and consumable supplies used in the modification,
1409+9 replacement, repair, and maintenance of aircraft engines or
1410+10 power plants, whether such engines or power plants are
1411+11 installed or uninstalled upon any such aircraft. "Consumable
1412+12 supplies" include, but are not limited to, adhesive, tape,
1413+13 sandpaper, general purpose lubricants, cleaning solution,
1414+14 latex gloves, and protective films.
1415+15 Beginning January 1, 2010 and continuing through December
1416+16 31, 2023, this exemption applies only to the use of qualifying
1417+17 tangible personal property by persons who modify, refurbish,
1418+18 complete, repair, replace, or maintain aircraft and who (i)
1419+19 hold an Air Agency Certificate and are empowered to operate an
1420+20 approved repair station by the Federal Aviation
1421+21 Administration, (ii) have a Class IV Rating, and (iii) conduct
1422+22 operations in accordance with Part 145 of the Federal Aviation
1423+23 Regulations. From January 1, 2024 through December 31, 2029,
1424+24 this exemption applies only to the use of qualifying tangible
1425+25 personal property by: (A) persons who modify, refurbish,
1426+26 complete, repair, replace, or maintain aircraft and who (i)
1427+
1428+
1429+
1430+
1431+
1432+ SB3476 Enrolled - 40 - LRB103 34190 HLH 64013 b
1433+
1434+
1435+SB3476 Enrolled- 41 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 41 - LRB103 34190 HLH 64013 b
1436+ SB3476 Enrolled - 41 - LRB103 34190 HLH 64013 b
1437+1 hold an Air Agency Certificate and are empowered to operate an
1438+2 approved repair station by the Federal Aviation
1439+3 Administration, (ii) have a Class IV Rating, and (iii) conduct
1440+4 operations in accordance with Part 145 of the Federal Aviation
1441+5 Regulations; and (B) persons who engage in the modification,
1442+6 replacement, repair, and maintenance of aircraft engines or
1443+7 power plants without regard to whether or not those persons
1444+8 meet the qualifications of item (A).
1445+9 The exemption does not include aircraft operated by a
1446+10 commercial air carrier providing scheduled passenger air
1447+11 service pursuant to authority issued under Part 121 or Part
1448+12 129 of the Federal Aviation Regulations. The changes made to
1449+13 this paragraph (35) by Public Act 98-534 are declarative of
1450+14 existing law. It is the intent of the General Assembly that the
1451+15 exemption under this paragraph (35) applies continuously from
1452+16 January 1, 2010 through December 31, 2024; however, no claim
1453+17 for credit or refund is allowed for taxes paid as a result of
1454+18 the disallowance of this exemption on or after January 1, 2015
1455+19 and prior to February 5, 2020 (the effective date of Public Act
1456+20 101-629).
1457+21 (36) Tangible personal property purchased by a
1458+22 public-facilities corporation, as described in Section
1459+23 11-65-10 of the Illinois Municipal Code, for purposes of
1460+24 constructing or furnishing a municipal convention hall, but
1461+25 only if the legal title to the municipal convention hall is
1462+26 transferred to the municipality without any further
1463+
1464+
1465+
1466+
1467+
1468+ SB3476 Enrolled - 41 - LRB103 34190 HLH 64013 b
1469+
1470+
1471+SB3476 Enrolled- 42 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 42 - LRB103 34190 HLH 64013 b
1472+ SB3476 Enrolled - 42 - LRB103 34190 HLH 64013 b
1473+1 consideration by or on behalf of the municipality at the time
1474+2 of the completion of the municipal convention hall or upon the
1475+3 retirement or redemption of any bonds or other debt
1476+4 instruments issued by the public-facilities corporation in
1477+5 connection with the development of the municipal convention
1478+6 hall. This exemption includes existing public-facilities
1479+7 corporations as provided in Section 11-65-25 of the Illinois
1480+8 Municipal Code. This paragraph is exempt from the provisions
1481+9 of Section 3-90.
1482+10 (37) Beginning January 1, 2017 and through December 31,
1483+11 2026, menstrual pads, tampons, and menstrual cups.
1484+12 (38) Merchandise that is subject to the Rental Purchase
1485+13 Agreement Occupation and Use Tax. The purchaser must certify
1486+14 that the item is purchased to be rented subject to a
1487+15 rental-purchase rental purchase agreement, as defined in the
1488+16 Rental-Purchase Rental Purchase Agreement Act, and provide
1489+17 proof of registration under the Rental Purchase Agreement
1490+18 Occupation and Use Tax Act. This paragraph is exempt from the
1491+19 provisions of Section 3-90.
1492+20 (39) Tangible personal property purchased by a purchaser
1493+21 who is exempt from the tax imposed by this Act by operation of
1494+22 federal law. This paragraph is exempt from the provisions of
1495+23 Section 3-90.
1496+24 (40) Qualified tangible personal property used in the
1497+25 construction or operation of a data center that has been
1498+26 granted a certificate of exemption by the Department of
1499+
1500+
1501+
1502+
1503+
1504+ SB3476 Enrolled - 42 - LRB103 34190 HLH 64013 b
1505+
1506+
1507+SB3476 Enrolled- 43 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 43 - LRB103 34190 HLH 64013 b
1508+ SB3476 Enrolled - 43 - LRB103 34190 HLH 64013 b
1509+1 Commerce and Economic Opportunity, whether that tangible
1510+2 personal property is purchased by the owner, operator, or
1511+3 tenant of the data center or by a contractor or subcontractor
1512+4 of the owner, operator, or tenant. Data centers that would
1513+5 have qualified for a certificate of exemption prior to January
1514+6 1, 2020 had Public Act 101-31 been in effect may apply for and
1515+7 obtain an exemption for subsequent purchases of computer
1516+8 equipment or enabling software purchased or leased to upgrade,
1517+9 supplement, or replace computer equipment or enabling software
1518+10 purchased or leased in the original investment that would have
1519+11 qualified.
1520+12 The Department of Commerce and Economic Opportunity shall
1521+13 grant a certificate of exemption under this item (40) to
1522+14 qualified data centers as defined by Section 605-1025 of the
1523+15 Department of Commerce and Economic Opportunity Law of the
1524+16 Civil Administrative Code of Illinois.
1525+17 For the purposes of this item (40):
1526+18 "Data center" means a building or a series of
1527+19 buildings rehabilitated or constructed to house working
1528+20 servers in one physical location or multiple sites within
1529+21 the State of Illinois.
1530+22 "Qualified tangible personal property" means:
1531+23 electrical systems and equipment; climate control and
1532+24 chilling equipment and systems; mechanical systems and
1533+25 equipment; monitoring and secure systems; emergency
1534+26 generators; hardware; computers; servers; data storage
1535+
1536+
1537+
1538+
1539+
1540+ SB3476 Enrolled - 43 - LRB103 34190 HLH 64013 b
1541+
1542+
1543+SB3476 Enrolled- 44 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 44 - LRB103 34190 HLH 64013 b
1544+ SB3476 Enrolled - 44 - LRB103 34190 HLH 64013 b
1545+1 devices; network connectivity equipment; racks; cabinets;
1546+2 telecommunications cabling infrastructure; raised floor
1547+3 systems; peripheral components or systems; software;
1548+4 mechanical, electrical, or plumbing systems; battery
1549+5 systems; cooling systems and towers; temperature control
1550+6 systems; other cabling; and other data center
1551+7 infrastructure equipment and systems necessary to operate
1552+8 qualified tangible personal property, including fixtures;
1553+9 and component parts of any of the foregoing, including
1554+10 installation, maintenance, repair, refurbishment, and
1555+11 replacement of qualified tangible personal property to
1556+12 generate, transform, transmit, distribute, or manage
1557+13 electricity necessary to operate qualified tangible
1558+14 personal property; and all other tangible personal
1559+15 property that is essential to the operations of a computer
1560+16 data center. The term "qualified tangible personal
1561+17 property" also includes building materials physically
1562+18 incorporated into in to the qualifying data center. To
1563+19 document the exemption allowed under this Section, the
1564+20 retailer must obtain from the purchaser a copy of the
1565+21 certificate of eligibility issued by the Department of
1566+22 Commerce and Economic Opportunity.
1567+23 This item (40) is exempt from the provisions of Section
1568+24 3-90.
1569+25 (41) Beginning July 1, 2022, breast pumps, breast pump
1570+26 collection and storage supplies, and breast pump kits. This
1571+
1572+
1573+
1574+
1575+
1576+ SB3476 Enrolled - 44 - LRB103 34190 HLH 64013 b
1577+
1578+
1579+SB3476 Enrolled- 45 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 45 - LRB103 34190 HLH 64013 b
1580+ SB3476 Enrolled - 45 - LRB103 34190 HLH 64013 b
1581+1 item (41) is exempt from the provisions of Section 3-90. As
1582+2 used in this item (41):
1583+3 "Breast pump" means an electrically controlled or
1584+4 manually controlled pump device designed or marketed to be
1585+5 used to express milk from a human breast during lactation,
1586+6 including the pump device and any battery, AC adapter, or
1587+7 other power supply unit that is used to power the pump
1588+8 device and is packaged and sold with the pump device at the
1589+9 time of sale.
1590+10 "Breast pump collection and storage supplies" means
1591+11 items of tangible personal property designed or marketed
1592+12 to be used in conjunction with a breast pump to collect
1593+13 milk expressed from a human breast and to store collected
1594+14 milk until it is ready for consumption.
1595+15 "Breast pump collection and storage supplies"
1596+16 includes, but is not limited to: breast shields and breast
1597+17 shield connectors; breast pump tubes and tubing adapters;
1598+18 breast pump valves and membranes; backflow protectors and
1599+19 backflow protector adaptors; bottles and bottle caps
1600+20 specific to the operation of the breast pump; and breast
1601+21 milk storage bags.
1602+22 "Breast pump collection and storage supplies" does not
1603+23 include: (1) bottles and bottle caps not specific to the
1604+24 operation of the breast pump; (2) breast pump travel bags
1605+25 and other similar carrying accessories, including ice
1606+26 packs, labels, and other similar products; (3) breast pump
1607+
1608+
1609+
1610+
1611+
1612+ SB3476 Enrolled - 45 - LRB103 34190 HLH 64013 b
1613+
1614+
1615+SB3476 Enrolled- 46 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 46 - LRB103 34190 HLH 64013 b
1616+ SB3476 Enrolled - 46 - LRB103 34190 HLH 64013 b
1617+1 cleaning supplies; (4) nursing bras, bra pads, breast
1618+2 shells, and other similar products; and (5) creams,
1619+3 ointments, and other similar products that relieve
1620+4 breastfeeding-related symptoms or conditions of the
1621+5 breasts or nipples, unless sold as part of a breast pump
1622+6 kit that is pre-packaged by the breast pump manufacturer
1623+7 or distributor.
1624+8 "Breast pump kit" means a kit that: (1) contains no
1625+9 more than a breast pump, breast pump collection and
1626+10 storage supplies, a rechargeable battery for operating the
1627+11 breast pump, a breastmilk cooler, bottle stands, ice
1628+12 packs, and a breast pump carrying case; and (2) is
1629+13 pre-packaged as a breast pump kit by the breast pump
1630+14 manufacturer or distributor.
1631+15 (42) Tangible personal property sold by or on behalf of
1632+16 the State Treasurer pursuant to the Revised Uniform Unclaimed
1633+17 Property Act. This item (42) is exempt from the provisions of
1634+18 Section 3-90.
1635+19 (43) Beginning on January 1, 2024, tangible personal
1636+20 property purchased by an active duty member of the armed
1637+21 forces of the United States who presents valid military
1638+22 identification and purchases the property using a form of
1639+23 payment where the federal government is the payor. The member
1640+24 of the armed forces must complete, at the point of sale, a form
1641+25 prescribed by the Department of Revenue documenting that the
1642+26 transaction is eligible for the exemption under this
1643+
1644+
1645+
1646+
1647+
1648+ SB3476 Enrolled - 46 - LRB103 34190 HLH 64013 b
1649+
1650+
1651+SB3476 Enrolled- 47 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 47 - LRB103 34190 HLH 64013 b
1652+ SB3476 Enrolled - 47 - LRB103 34190 HLH 64013 b
1653+1 paragraph. Retailers must keep the form as documentation of
1654+2 the exemption in their records for a period of not less than 6
1655+3 years. "Armed forces of the United States" means the United
1656+4 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
1657+5 This paragraph is exempt from the provisions of Section 3-90.
1658+6 (44) Beginning July 1, 2024, home-delivered meals provided
1659+7 to Medicare or Medicaid recipients when payment is made by an
1660+8 intermediary, such as a Medicare Administrative Contractor, a
1661+9 Managed Care Organization, or a Medicare Advantage
1662+10 Organization, pursuant to a government contract. This item
1663+11 (44) is exempt from the provisions of Section 3-90.
1664+12 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1665+13 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
1666+14 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1667+15 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
1668+16 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1669+17 revised 9-12-23.)
1670+18 Section 10. The Service Use Tax Act is amended by changing
1671+19 Section 3-5 as follows:
1672+20 (35 ILCS 110/3-5)
1673+21 (Text of Section before amendment by P.A. 103-384)
1674+22 Sec. 3-5. Exemptions. Use of the following tangible
1675+23 personal property is exempt from the tax imposed by this Act:
1676+24 (1) Personal property purchased from a corporation,
1677+
1678+
1679+
1680+
1681+
1682+ SB3476 Enrolled - 47 - LRB103 34190 HLH 64013 b
1683+
1684+
1685+SB3476 Enrolled- 48 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 48 - LRB103 34190 HLH 64013 b
1686+ SB3476 Enrolled - 48 - LRB103 34190 HLH 64013 b
1687+1 society, association, foundation, institution, or
1688+2 organization, other than a limited liability company, that is
1689+3 organized and operated as a not-for-profit service enterprise
1690+4 for the benefit of persons 65 years of age or older if the
1691+5 personal property was not purchased by the enterprise for the
1692+6 purpose of resale by the enterprise.
1693+7 (2) Personal property purchased by a non-profit Illinois
1694+8 county fair association for use in conducting, operating, or
1695+9 promoting the county fair.
1696+10 (3) Personal property purchased by a not-for-profit arts
1697+11 or cultural organization that establishes, by proof required
1698+12 by the Department by rule, that it has received an exemption
1699+13 under Section 501(c)(3) of the Internal Revenue Code and that
1700+14 is organized and operated primarily for the presentation or
1701+15 support of arts or cultural programming, activities, or
1702+16 services. These organizations include, but are not limited to,
1703+17 music and dramatic arts organizations such as symphony
1704+18 orchestras and theatrical groups, arts and cultural service
1705+19 organizations, local arts councils, visual arts organizations,
1706+20 and media arts organizations. On and after July 1, 2001 (the
1707+21 effective date of Public Act 92-35), however, an entity
1708+22 otherwise eligible for this exemption shall not make tax-free
1709+23 purchases unless it has an active identification number issued
1710+24 by the Department.
1711+25 (4) Legal tender, currency, medallions, or gold or silver
1712+26 coinage issued by the State of Illinois, the government of the
1713+
1714+
1715+
1716+
1717+
1718+ SB3476 Enrolled - 48 - LRB103 34190 HLH 64013 b
1719+
1720+
1721+SB3476 Enrolled- 49 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 49 - LRB103 34190 HLH 64013 b
1722+ SB3476 Enrolled - 49 - LRB103 34190 HLH 64013 b
1723+1 United States of America, or the government of any foreign
1724+2 country, and bullion.
1725+3 (5) Until July 1, 2003 and beginning again on September 1,
1726+4 2004 through August 30, 2014, graphic arts machinery and
1727+5 equipment, including repair and replacement parts, both new
1728+6 and used, and including that manufactured on special order or
1729+7 purchased for lease, certified by the purchaser to be used
1730+8 primarily for graphic arts production. Equipment includes
1731+9 chemicals or chemicals acting as catalysts but only if the
1732+10 chemicals or chemicals acting as catalysts effect a direct and
1733+11 immediate change upon a graphic arts product. Beginning on
1734+12 July 1, 2017, graphic arts machinery and equipment is included
1735+13 in the manufacturing and assembling machinery and equipment
1736+14 exemption under Section 2 of this Act.
1737+15 (6) Personal property purchased from a teacher-sponsored
1738+16 student organization affiliated with an elementary or
1739+17 secondary school located in Illinois.
1740+18 (7) Farm machinery and equipment, both new and used,
1741+19 including that manufactured on special order, certified by the
1742+20 purchaser to be used primarily for production agriculture or
1743+21 State or federal agricultural programs, including individual
1744+22 replacement parts for the machinery and equipment, including
1745+23 machinery and equipment purchased for lease, and including
1746+24 implements of husbandry defined in Section 1-130 of the
1747+25 Illinois Vehicle Code, farm machinery and agricultural
1748+26 chemical and fertilizer spreaders, and nurse wagons required
1749+
1750+
1751+
1752+
1753+
1754+ SB3476 Enrolled - 49 - LRB103 34190 HLH 64013 b
1755+
1756+
1757+SB3476 Enrolled- 50 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 50 - LRB103 34190 HLH 64013 b
1758+ SB3476 Enrolled - 50 - LRB103 34190 HLH 64013 b
1759+1 to be registered under Section 3-809 of the Illinois Vehicle
1760+2 Code, but excluding other motor vehicles required to be
1761+3 registered under the Illinois Vehicle Code. Horticultural
1762+4 polyhouses or hoop houses used for propagating, growing, or
1763+5 overwintering plants shall be considered farm machinery and
1764+6 equipment under this item (7). Agricultural chemical tender
1765+7 tanks and dry boxes shall include units sold separately from a
1766+8 motor vehicle required to be licensed and units sold mounted
1767+9 on a motor vehicle required to be licensed if the selling price
1768+10 of the tender is separately stated.
1769+11 Farm machinery and equipment shall include precision
1770+12 farming equipment that is installed or purchased to be
1771+13 installed on farm machinery and equipment, including, but not
1772+14 limited to, tractors, harvesters, sprayers, planters, seeders,
1773+15 or spreaders. Precision farming equipment includes, but is not
1774+16 limited to, soil testing sensors, computers, monitors,
1775+17 software, global positioning and mapping systems, and other
1776+18 such equipment.
1777+19 Farm machinery and equipment also includes computers,
1778+20 sensors, software, and related equipment used primarily in the
1779+21 computer-assisted operation of production agriculture
1780+22 facilities, equipment, and activities such as, but not limited
1781+23 to, the collection, monitoring, and correlation of animal and
1782+24 crop data for the purpose of formulating animal diets and
1783+25 agricultural chemicals.
1784+26 Beginning on January 1, 2024, farm machinery and equipment
1785+
1786+
1787+
1788+
1789+
1790+ SB3476 Enrolled - 50 - LRB103 34190 HLH 64013 b
1791+
1792+
1793+SB3476 Enrolled- 51 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 51 - LRB103 34190 HLH 64013 b
1794+ SB3476 Enrolled - 51 - LRB103 34190 HLH 64013 b
1795+1 also includes electrical power generation equipment used
1796+2 primarily for production agriculture.
1797+3 This item (7) is exempt from the provisions of Section
1798+4 3-75.
1799+5 (8) Until June 30, 2013, fuel and petroleum products sold
1800+6 to or used by an air common carrier, certified by the carrier
1801+7 to be used for consumption, shipment, or storage in the
1802+8 conduct of its business as an air common carrier, for a flight
1803+9 destined for or returning from a location or locations outside
1804+10 the United States without regard to previous or subsequent
1805+11 domestic stopovers.
1806+12 Beginning July 1, 2013, fuel and petroleum products sold
1807+13 to or used by an air carrier, certified by the carrier to be
1808+14 used for consumption, shipment, or storage in the conduct of
1809+15 its business as an air common carrier, for a flight that (i) is
1810+16 engaged in foreign trade or is engaged in trade between the
1811+17 United States and any of its possessions and (ii) transports
1812+18 at least one individual or package for hire from the city of
1813+19 origination to the city of final destination on the same
1814+20 aircraft, without regard to a change in the flight number of
1815+21 that aircraft.
1816+22 (9) Proceeds of mandatory service charges separately
1817+23 stated on customers' bills for the purchase and consumption of
1818+24 food and beverages acquired as an incident to the purchase of a
1819+25 service from a serviceman, to the extent that the proceeds of
1820+26 the service charge are in fact turned over as tips or as a
1821+
1822+
1823+
1824+
1825+
1826+ SB3476 Enrolled - 51 - LRB103 34190 HLH 64013 b
1827+
1828+
1829+SB3476 Enrolled- 52 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 52 - LRB103 34190 HLH 64013 b
1830+ SB3476 Enrolled - 52 - LRB103 34190 HLH 64013 b
1831+1 substitute for tips to the employees who participate directly
1832+2 in preparing, serving, hosting or cleaning up the food or
1833+3 beverage function with respect to which the service charge is
1834+4 imposed.
1835+5 (10) Until July 1, 2003, oil field exploration, drilling,
1836+6 and production equipment, including (i) rigs and parts of
1837+7 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1838+8 pipe and tubular goods, including casing and drill strings,
1839+9 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1840+10 lines, (v) any individual replacement part for oil field
1841+11 exploration, drilling, and production equipment, and (vi)
1842+12 machinery and equipment purchased for lease; but excluding
1843+13 motor vehicles required to be registered under the Illinois
1844+14 Vehicle Code.
1845+15 (11) Proceeds from the sale of photoprocessing machinery
1846+16 and equipment, including repair and replacement parts, both
1847+17 new and used, including that manufactured on special order,
1848+18 certified by the purchaser to be used primarily for
1849+19 photoprocessing, and including photoprocessing machinery and
1850+20 equipment purchased for lease.
1851+21 (12) Until July 1, 2028, coal and aggregate exploration,
1852+22 mining, off-highway hauling, processing, maintenance, and
1853+23 reclamation equipment, including replacement parts and
1854+24 equipment, and including equipment purchased for lease, but
1855+25 excluding motor vehicles required to be registered under the
1856+26 Illinois Vehicle Code. The changes made to this Section by
1857+
1858+
1859+
1860+
1861+
1862+ SB3476 Enrolled - 52 - LRB103 34190 HLH 64013 b
1863+
1864+
1865+SB3476 Enrolled- 53 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 53 - LRB103 34190 HLH 64013 b
1866+ SB3476 Enrolled - 53 - LRB103 34190 HLH 64013 b
1867+1 Public Act 97-767 apply on and after July 1, 2003, but no claim
1868+2 for credit or refund is allowed on or after August 16, 2013
1869+3 (the effective date of Public Act 98-456) for such taxes paid
1870+4 during the period beginning July 1, 2003 and ending on August
1871+5 16, 2013 (the effective date of Public Act 98-456).
1872+6 (13) Semen used for artificial insemination of livestock
1873+7 for direct agricultural production.
1874+8 (14) Horses, or interests in horses, registered with and
1875+9 meeting the requirements of any of the Arabian Horse Club
1876+10 Registry of America, Appaloosa Horse Club, American Quarter
1877+11 Horse Association, United States Trotting Association, or
1878+12 Jockey Club, as appropriate, used for purposes of breeding or
1879+13 racing for prizes. This item (14) is exempt from the
1880+14 provisions of Section 3-75, and the exemption provided for
1881+15 under this item (14) applies for all periods beginning May 30,
1882+16 1995, but no claim for credit or refund is allowed on or after
1883+17 January 1, 2008 (the effective date of Public Act 95-88) for
1884+18 such taxes paid during the period beginning May 30, 2000 and
1885+19 ending on January 1, 2008 (the effective date of Public Act
1886+20 95-88).
1887+21 (15) Computers and communications equipment utilized for
1888+22 any hospital purpose and equipment used in the diagnosis,
1889+23 analysis, or treatment of hospital patients purchased by a
1890+24 lessor who leases the equipment, under a lease of one year or
1891+25 longer executed or in effect at the time the lessor would
1892+26 otherwise be subject to the tax imposed by this Act, to a
1893+
1894+
1895+
1896+
1897+
1898+ SB3476 Enrolled - 53 - LRB103 34190 HLH 64013 b
1899+
1900+
1901+SB3476 Enrolled- 54 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 54 - LRB103 34190 HLH 64013 b
1902+ SB3476 Enrolled - 54 - LRB103 34190 HLH 64013 b
1903+1 hospital that has been issued an active tax exemption
1904+2 identification number by the Department under Section 1g of
1905+3 the Retailers' Occupation Tax Act. If the equipment is leased
1906+4 in a manner that does not qualify for this exemption or is used
1907+5 in any other non-exempt manner, the lessor shall be liable for
1908+6 the tax imposed under this Act or the Use Tax Act, as the case
1909+7 may be, based on the fair market value of the property at the
1910+8 time the non-qualifying use occurs. No lessor shall collect or
1911+9 attempt to collect an amount (however designated) that
1912+10 purports to reimburse that lessor for the tax imposed by this
1913+11 Act or the Use Tax Act, as the case may be, if the tax has not
1914+12 been paid by the lessor. If a lessor improperly collects any
1915+13 such amount from the lessee, the lessee shall have a legal
1916+14 right to claim a refund of that amount from the lessor. If,
1917+15 however, that amount is not refunded to the lessee for any
1918+16 reason, the lessor is liable to pay that amount to the
1919+17 Department.
1920+18 (16) Personal property purchased by a lessor who leases
1921+19 the property, under a lease of one year or longer executed or
1922+20 in effect at the time the lessor would otherwise be subject to
1923+21 the tax imposed by this Act, to a governmental body that has
1924+22 been issued an active tax exemption identification number by
1925+23 the Department under Section 1g of the Retailers' Occupation
1926+24 Tax Act. If the property is leased in a manner that does not
1927+25 qualify for this exemption or is used in any other non-exempt
1928+26 manner, the lessor shall be liable for the tax imposed under
1929+
1930+
1931+
1932+
1933+
1934+ SB3476 Enrolled - 54 - LRB103 34190 HLH 64013 b
1935+
1936+
1937+SB3476 Enrolled- 55 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 55 - LRB103 34190 HLH 64013 b
1938+ SB3476 Enrolled - 55 - LRB103 34190 HLH 64013 b
1939+1 this Act or the Use Tax Act, as the case may be, based on the
1940+2 fair market value of the property at the time the
1941+3 non-qualifying use occurs. No lessor shall collect or attempt
1942+4 to collect an amount (however designated) that purports to
1943+5 reimburse that lessor for the tax imposed by this Act or the
1944+6 Use Tax Act, as the case may be, if the tax has not been paid
1945+7 by the lessor. If a lessor improperly collects any such amount
1946+8 from the lessee, the lessee shall have a legal right to claim a
1947+9 refund of that amount from the lessor. If, however, that
1948+10 amount is not refunded to the lessee for any reason, the lessor
1949+11 is liable to pay that amount to the Department.
1950+12 (17) Beginning with taxable years ending on or after
1951+13 December 31, 1995 and ending with taxable years ending on or
1952+14 before December 31, 2004, personal property that is donated
1953+15 for disaster relief to be used in a State or federally declared
1954+16 disaster area in Illinois or bordering Illinois by a
1955+17 manufacturer or retailer that is registered in this State to a
1956+18 corporation, society, association, foundation, or institution
1957+19 that has been issued a sales tax exemption identification
1958+20 number by the Department that assists victims of the disaster
1959+21 who reside within the declared disaster area.
1960+22 (18) Beginning with taxable years ending on or after
1961+23 December 31, 1995 and ending with taxable years ending on or
1962+24 before December 31, 2004, personal property that is used in
1963+25 the performance of infrastructure repairs in this State,
1964+26 including, but not limited to, municipal roads and streets,
1965+
1966+
1967+
1968+
1969+
1970+ SB3476 Enrolled - 55 - LRB103 34190 HLH 64013 b
1971+
1972+
1973+SB3476 Enrolled- 56 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 56 - LRB103 34190 HLH 64013 b
1974+ SB3476 Enrolled - 56 - LRB103 34190 HLH 64013 b
1975+1 access roads, bridges, sidewalks, waste disposal systems,
1976+2 water and sewer line extensions, water distribution and
1977+3 purification facilities, storm water drainage and retention
1978+4 facilities, and sewage treatment facilities, resulting from a
1979+5 State or federally declared disaster in Illinois or bordering
1980+6 Illinois when such repairs are initiated on facilities located
1981+7 in the declared disaster area within 6 months after the
1982+8 disaster.
1983+9 (19) Beginning July 1, 1999, game or game birds purchased
1984+10 at a "game breeding and hunting preserve area" as that term is
1985+11 used in the Wildlife Code. This paragraph is exempt from the
1986+12 provisions of Section 3-75.
1987+13 (20) A motor vehicle, as that term is defined in Section
1988+14 1-146 of the Illinois Vehicle Code, that is donated to a
1989+15 corporation, limited liability company, society, association,
1990+16 foundation, or institution that is determined by the
1991+17 Department to be organized and operated exclusively for
1992+18 educational purposes. For purposes of this exemption, "a
1993+19 corporation, limited liability company, society, association,
1994+20 foundation, or institution organized and operated exclusively
1995+21 for educational purposes" means all tax-supported public
1996+22 schools, private schools that offer systematic instruction in
1997+23 useful branches of learning by methods common to public
1998+24 schools and that compare favorably in their scope and
1999+25 intensity with the course of study presented in tax-supported
2000+26 schools, and vocational or technical schools or institutes
2001+
2002+
2003+
2004+
2005+
2006+ SB3476 Enrolled - 56 - LRB103 34190 HLH 64013 b
2007+
2008+
2009+SB3476 Enrolled- 57 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 57 - LRB103 34190 HLH 64013 b
2010+ SB3476 Enrolled - 57 - LRB103 34190 HLH 64013 b
2011+1 organized and operated exclusively to provide a course of
2012+2 study of not less than 6 weeks duration and designed to prepare
2013+3 individuals to follow a trade or to pursue a manual,
2014+4 technical, mechanical, industrial, business, or commercial
2015+5 occupation.
2016+6 (21) Beginning January 1, 2000, personal property,
2017+7 including food, purchased through fundraising events for the
2018+8 benefit of a public or private elementary or secondary school,
2019+9 a group of those schools, or one or more school districts if
2020+10 the events are sponsored by an entity recognized by the school
2021+11 district that consists primarily of volunteers and includes
2022+12 parents and teachers of the school children. This paragraph
2023+13 does not apply to fundraising events (i) for the benefit of
2024+14 private home instruction or (ii) for which the fundraising
2025+15 entity purchases the personal property sold at the events from
2026+16 another individual or entity that sold the property for the
2027+17 purpose of resale by the fundraising entity and that profits
2028+18 from the sale to the fundraising entity. This paragraph is
2029+19 exempt from the provisions of Section 3-75.
2030+20 (22) Beginning January 1, 2000 and through December 31,
2031+21 2001, new or used automatic vending machines that prepare and
2032+22 serve hot food and beverages, including coffee, soup, and
2033+23 other items, and replacement parts for these machines.
2034+24 Beginning January 1, 2002 and through June 30, 2003, machines
2035+25 and parts for machines used in commercial, coin-operated
2036+26 amusement and vending business if a use or occupation tax is
2037+
2038+
2039+
2040+
2041+
2042+ SB3476 Enrolled - 57 - LRB103 34190 HLH 64013 b
2043+
2044+
2045+SB3476 Enrolled- 58 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 58 - LRB103 34190 HLH 64013 b
2046+ SB3476 Enrolled - 58 - LRB103 34190 HLH 64013 b
2047+1 paid on the gross receipts derived from the use of the
2048+2 commercial, coin-operated amusement and vending machines. This
2049+3 paragraph is exempt from the provisions of Section 3-75.
2050+4 (23) Beginning August 23, 2001 and through June 30, 2016,
2051+5 food for human consumption that is to be consumed off the
2052+6 premises where it is sold (other than alcoholic beverages,
2053+7 soft drinks, and food that has been prepared for immediate
2054+8 consumption) and prescription and nonprescription medicines,
2055+9 drugs, medical appliances, and insulin, urine testing
2056+10 materials, syringes, and needles used by diabetics, for human
2057+11 use, when purchased for use by a person receiving medical
2058+12 assistance under Article V of the Illinois Public Aid Code who
2059+13 resides in a licensed long-term care facility, as defined in
2060+14 the Nursing Home Care Act, or in a licensed facility as defined
2061+15 in the ID/DD Community Care Act, the MC/DD Act, or the
2062+16 Specialized Mental Health Rehabilitation Act of 2013.
2063+17 (24) Beginning on August 2, 2001 (the effective date of
2064+18 Public Act 92-227), computers and communications equipment
2065+19 utilized for any hospital purpose and equipment used in the
2066+20 diagnosis, analysis, or treatment of hospital patients
2067+21 purchased by a lessor who leases the equipment, under a lease
2068+22 of one year or longer executed or in effect at the time the
2069+23 lessor would otherwise be subject to the tax imposed by this
2070+24 Act, to a hospital that has been issued an active tax exemption
2071+25 identification number by the Department under Section 1g of
2072+26 the Retailers' Occupation Tax Act. If the equipment is leased
2073+
2074+
2075+
2076+
2077+
2078+ SB3476 Enrolled - 58 - LRB103 34190 HLH 64013 b
2079+
2080+
2081+SB3476 Enrolled- 59 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 59 - LRB103 34190 HLH 64013 b
2082+ SB3476 Enrolled - 59 - LRB103 34190 HLH 64013 b
2083+1 in a manner that does not qualify for this exemption or is used
2084+2 in any other nonexempt manner, the lessor shall be liable for
2085+3 the tax imposed under this Act or the Use Tax Act, as the case
2086+4 may be, based on the fair market value of the property at the
2087+5 time the nonqualifying use occurs. No lessor shall collect or
2088+6 attempt to collect an amount (however designated) that
2089+7 purports to reimburse that lessor for the tax imposed by this
2090+8 Act or the Use Tax Act, as the case may be, if the tax has not
2091+9 been paid by the lessor. If a lessor improperly collects any
2092+10 such amount from the lessee, the lessee shall have a legal
2093+11 right to claim a refund of that amount from the lessor. If,
2094+12 however, that amount is not refunded to the lessee for any
2095+13 reason, the lessor is liable to pay that amount to the
2096+14 Department. This paragraph is exempt from the provisions of
2097+15 Section 3-75.
2098+16 (25) Beginning on August 2, 2001 (the effective date of
2099+17 Public Act 92-227), personal property purchased by a lessor
2100+18 who leases the property, under a lease of one year or longer
2101+19 executed or in effect at the time the lessor would otherwise be
2102+20 subject to the tax imposed by this Act, to a governmental body
2103+21 that has been issued an active tax exemption identification
2104+22 number by the Department under Section 1g of the Retailers'
2105+23 Occupation Tax Act. If the property is leased in a manner that
2106+24 does not qualify for this exemption or is used in any other
2107+25 nonexempt manner, the lessor shall be liable for the tax
2108+26 imposed under this Act or the Use Tax Act, as the case may be,
2109+
2110+
2111+
2112+
2113+
2114+ SB3476 Enrolled - 59 - LRB103 34190 HLH 64013 b
2115+
2116+
2117+SB3476 Enrolled- 60 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 60 - LRB103 34190 HLH 64013 b
2118+ SB3476 Enrolled - 60 - LRB103 34190 HLH 64013 b
2119+1 based on the fair market value of the property at the time the
2120+2 nonqualifying use occurs. No lessor shall collect or attempt
2121+3 to collect an amount (however designated) that purports to
2122+4 reimburse that lessor for the tax imposed by this Act or the
2123+5 Use Tax Act, as the case may be, if the tax has not been paid
2124+6 by the lessor. If a lessor improperly collects any such amount
2125+7 from the lessee, the lessee shall have a legal right to claim a
2126+8 refund of that amount from the lessor. If, however, that
2127+9 amount is not refunded to the lessee for any reason, the lessor
2128+10 is liable to pay that amount to the Department. This paragraph
2129+11 is exempt from the provisions of Section 3-75.
2130+12 (26) Beginning January 1, 2008, tangible personal property
2131+13 used in the construction or maintenance of a community water
2132+14 supply, as defined under Section 3.145 of the Environmental
2133+15 Protection Act, that is operated by a not-for-profit
2134+16 corporation that holds a valid water supply permit issued
2135+17 under Title IV of the Environmental Protection Act. This
2136+18 paragraph is exempt from the provisions of Section 3-75.
2137+19 (27) Beginning January 1, 2010 and continuing through
2138+20 December 31, 2029, materials, parts, equipment, components,
2139+21 and furnishings incorporated into or upon an aircraft as part
2140+22 of the modification, refurbishment, completion, replacement,
2141+23 repair, or maintenance of the aircraft. This exemption
2142+24 includes consumable supplies used in the modification,
2143+25 refurbishment, completion, replacement, repair, and
2144+26 maintenance of aircraft. However, until January 1, 2024, this
2145+
2146+
2147+
2148+
2149+
2150+ SB3476 Enrolled - 60 - LRB103 34190 HLH 64013 b
2151+
2152+
2153+SB3476 Enrolled- 61 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 61 - LRB103 34190 HLH 64013 b
2154+ SB3476 Enrolled - 61 - LRB103 34190 HLH 64013 b
2155+1 exemption excludes any materials, parts, equipment,
2156+2 components, and consumable supplies used in the modification,
2157+3 replacement, repair, and maintenance of aircraft engines or
2158+4 power plants, whether such engines or power plants are
2159+5 installed or uninstalled upon any such aircraft. "Consumable
2160+6 supplies" include, but are not limited to, adhesive, tape,
2161+7 sandpaper, general purpose lubricants, cleaning solution,
2162+8 latex gloves, and protective films.
2163+9 Beginning January 1, 2010 and continuing through December
2164+10 31, 2023, this exemption applies only to the use of qualifying
2165+11 tangible personal property transferred incident to the
2166+12 modification, refurbishment, completion, replacement, repair,
2167+13 or maintenance of aircraft by persons who (i) hold an Air
2168+14 Agency Certificate and are empowered to operate an approved
2169+15 repair station by the Federal Aviation Administration, (ii)
2170+16 have a Class IV Rating, and (iii) conduct operations in
2171+17 accordance with Part 145 of the Federal Aviation Regulations.
2172+18 From January 1, 2024 through December 31, 2029, this exemption
2173+19 applies only to the use of qualifying tangible personal
2174+20 property by: (A) persons who modify, refurbish, complete,
2175+21 repair, replace, or maintain aircraft and who (i) hold an Air
2176+22 Agency Certificate and are empowered to operate an approved
2177+23 repair station by the Federal Aviation Administration, (ii)
2178+24 have a Class IV Rating, and (iii) conduct operations in
2179+25 accordance with Part 145 of the Federal Aviation Regulations;
2180+26 and (B) persons who engage in the modification, replacement,
2181+
2182+
2183+
2184+
2185+
2186+ SB3476 Enrolled - 61 - LRB103 34190 HLH 64013 b
2187+
2188+
2189+SB3476 Enrolled- 62 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 62 - LRB103 34190 HLH 64013 b
2190+ SB3476 Enrolled - 62 - LRB103 34190 HLH 64013 b
2191+1 repair, and maintenance of aircraft engines or power plants
2192+2 without regard to whether or not those persons meet the
2193+3 qualifications of item (A).
2194+4 The exemption does not include aircraft operated by a
2195+5 commercial air carrier providing scheduled passenger air
2196+6 service pursuant to authority issued under Part 121 or Part
2197+7 129 of the Federal Aviation Regulations. The changes made to
2198+8 this paragraph (27) by Public Act 98-534 are declarative of
2199+9 existing law. It is the intent of the General Assembly that the
2200+10 exemption under this paragraph (27) applies continuously from
2201+11 January 1, 2010 through December 31, 2024; however, no claim
2202+12 for credit or refund is allowed for taxes paid as a result of
2203+13 the disallowance of this exemption on or after January 1, 2015
2204+14 and prior to February 5, 2020 (the effective date of Public Act
2205+15 101-629).
2206+16 (28) Tangible personal property purchased by a
2207+17 public-facilities corporation, as described in Section
2208+18 11-65-10 of the Illinois Municipal Code, for purposes of
2209+19 constructing or furnishing a municipal convention hall, but
2210+20 only if the legal title to the municipal convention hall is
2211+21 transferred to the municipality without any further
2212+22 consideration by or on behalf of the municipality at the time
2213+23 of the completion of the municipal convention hall or upon the
2214+24 retirement or redemption of any bonds or other debt
2215+25 instruments issued by the public-facilities corporation in
2216+26 connection with the development of the municipal convention
2217+
2218+
2219+
2220+
2221+
2222+ SB3476 Enrolled - 62 - LRB103 34190 HLH 64013 b
2223+
2224+
2225+SB3476 Enrolled- 63 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 63 - LRB103 34190 HLH 64013 b
2226+ SB3476 Enrolled - 63 - LRB103 34190 HLH 64013 b
2227+1 hall. This exemption includes existing public-facilities
2228+2 corporations as provided in Section 11-65-25 of the Illinois
2229+3 Municipal Code. This paragraph is exempt from the provisions
2230+4 of Section 3-75.
2231+5 (29) Beginning January 1, 2017 and through December 31,
2232+6 2026, menstrual pads, tampons, and menstrual cups.
2233+7 (30) Tangible personal property transferred to a purchaser
2234+8 who is exempt from the tax imposed by this Act by operation of
2235+9 federal law. This paragraph is exempt from the provisions of
2236+10 Section 3-75.
2237+11 (31) Qualified tangible personal property used in the
2238+12 construction or operation of a data center that has been
2239+13 granted a certificate of exemption by the Department of
2240+14 Commerce and Economic Opportunity, whether that tangible
2241+15 personal property is purchased by the owner, operator, or
2242+16 tenant of the data center or by a contractor or subcontractor
2243+17 of the owner, operator, or tenant. Data centers that would
2244+18 have qualified for a certificate of exemption prior to January
2245+19 1, 2020 had Public Act 101-31 been in effect, may apply for and
2246+20 obtain an exemption for subsequent purchases of computer
2247+21 equipment or enabling software purchased or leased to upgrade,
2248+22 supplement, or replace computer equipment or enabling software
2249+23 purchased or leased in the original investment that would have
2250+24 qualified.
2251+25 The Department of Commerce and Economic Opportunity shall
2252+26 grant a certificate of exemption under this item (31) to
2253+
2254+
2255+
2256+
2257+
2258+ SB3476 Enrolled - 63 - LRB103 34190 HLH 64013 b
2259+
2260+
2261+SB3476 Enrolled- 64 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 64 - LRB103 34190 HLH 64013 b
2262+ SB3476 Enrolled - 64 - LRB103 34190 HLH 64013 b
2263+1 qualified data centers as defined by Section 605-1025 of the
2264+2 Department of Commerce and Economic Opportunity Law of the
2265+3 Civil Administrative Code of Illinois.
2266+4 For the purposes of this item (31):
2267+5 "Data center" means a building or a series of
2268+6 buildings rehabilitated or constructed to house working
2269+7 servers in one physical location or multiple sites within
2270+8 the State of Illinois.
2271+9 "Qualified tangible personal property" means:
2272+10 electrical systems and equipment; climate control and
2273+11 chilling equipment and systems; mechanical systems and
2274+12 equipment; monitoring and secure systems; emergency
2275+13 generators; hardware; computers; servers; data storage
2276+14 devices; network connectivity equipment; racks; cabinets;
2277+15 telecommunications cabling infrastructure; raised floor
2278+16 systems; peripheral components or systems; software;
2279+17 mechanical, electrical, or plumbing systems; battery
2280+18 systems; cooling systems and towers; temperature control
2281+19 systems; other cabling; and other data center
2282+20 infrastructure equipment and systems necessary to operate
2283+21 qualified tangible personal property, including fixtures;
2284+22 and component parts of any of the foregoing, including
2285+23 installation, maintenance, repair, refurbishment, and
2286+24 replacement of qualified tangible personal property to
2287+25 generate, transform, transmit, distribute, or manage
2288+26 electricity necessary to operate qualified tangible
2289+
2290+
2291+
2292+
2293+
2294+ SB3476 Enrolled - 64 - LRB103 34190 HLH 64013 b
2295+
2296+
2297+SB3476 Enrolled- 65 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 65 - LRB103 34190 HLH 64013 b
2298+ SB3476 Enrolled - 65 - LRB103 34190 HLH 64013 b
2299+1 personal property; and all other tangible personal
2300+2 property that is essential to the operations of a computer
2301+3 data center. The term "qualified tangible personal
2302+4 property" also includes building materials physically
2303+5 incorporated into in to the qualifying data center. To
2304+6 document the exemption allowed under this Section, the
2305+7 retailer must obtain from the purchaser a copy of the
2306+8 certificate of eligibility issued by the Department of
2307+9 Commerce and Economic Opportunity.
2308+10 This item (31) is exempt from the provisions of Section
2309+11 3-75.
2310+12 (32) Beginning July 1, 2022, breast pumps, breast pump
2311+13 collection and storage supplies, and breast pump kits. This
2312+14 item (32) is exempt from the provisions of Section 3-75. As
2313+15 used in this item (32):
2314+16 "Breast pump" means an electrically controlled or
2315+17 manually controlled pump device designed or marketed to be
2316+18 used to express milk from a human breast during lactation,
2317+19 including the pump device and any battery, AC adapter, or
2318+20 other power supply unit that is used to power the pump
2319+21 device and is packaged and sold with the pump device at the
2320+22 time of sale.
2321+23 "Breast pump collection and storage supplies" means
2322+24 items of tangible personal property designed or marketed
2323+25 to be used in conjunction with a breast pump to collect
2324+26 milk expressed from a human breast and to store collected
2325+
2326+
2327+
2328+
2329+
2330+ SB3476 Enrolled - 65 - LRB103 34190 HLH 64013 b
2331+
2332+
2333+SB3476 Enrolled- 66 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 66 - LRB103 34190 HLH 64013 b
2334+ SB3476 Enrolled - 66 - LRB103 34190 HLH 64013 b
2335+1 milk until it is ready for consumption.
2336+2 "Breast pump collection and storage supplies"
2337+3 includes, but is not limited to: breast shields and breast
2338+4 shield connectors; breast pump tubes and tubing adapters;
2339+5 breast pump valves and membranes; backflow protectors and
2340+6 backflow protector adaptors; bottles and bottle caps
2341+7 specific to the operation of the breast pump; and breast
2342+8 milk storage bags.
2343+9 "Breast pump collection and storage supplies" does not
2344+10 include: (1) bottles and bottle caps not specific to the
2345+11 operation of the breast pump; (2) breast pump travel bags
2346+12 and other similar carrying accessories, including ice
2347+13 packs, labels, and other similar products; (3) breast pump
2348+14 cleaning supplies; (4) nursing bras, bra pads, breast
2349+15 shells, and other similar products; and (5) creams,
2350+16 ointments, and other similar products that relieve
2351+17 breastfeeding-related symptoms or conditions of the
2352+18 breasts or nipples, unless sold as part of a breast pump
2353+19 kit that is pre-packaged by the breast pump manufacturer
2354+20 or distributor.
2355+21 "Breast pump kit" means a kit that: (1) contains no
2356+22 more than a breast pump, breast pump collection and
2357+23 storage supplies, a rechargeable battery for operating the
2358+24 breast pump, a breastmilk cooler, bottle stands, ice
2359+25 packs, and a breast pump carrying case; and (2) is
2360+26 pre-packaged as a breast pump kit by the breast pump
2361+
2362+
2363+
2364+
2365+
2366+ SB3476 Enrolled - 66 - LRB103 34190 HLH 64013 b
2367+
2368+
2369+SB3476 Enrolled- 67 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 67 - LRB103 34190 HLH 64013 b
2370+ SB3476 Enrolled - 67 - LRB103 34190 HLH 64013 b
2371+1 manufacturer or distributor.
2372+2 (33) Tangible personal property sold by or on behalf of
2373+3 the State Treasurer pursuant to the Revised Uniform Unclaimed
2374+4 Property Act. This item (33) is exempt from the provisions of
2375+5 Section 3-75.
2376+6 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2377+7 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2378+8 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2379+9 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
2380+10 eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-14-23.)
2381+11 (Text of Section after amendment by P.A. 103-384)
2382+12 Sec. 3-5. Exemptions. Use of the following tangible
2383+13 personal property is exempt from the tax imposed by this Act:
2384+14 (1) Personal property purchased from a corporation,
2385+15 society, association, foundation, institution, or
2386+16 organization, other than a limited liability company, that is
2387+17 organized and operated as a not-for-profit service enterprise
2388+18 for the benefit of persons 65 years of age or older if the
2389+19 personal property was not purchased by the enterprise for the
2390+20 purpose of resale by the enterprise.
2391+21 (2) Personal property purchased by a non-profit Illinois
2392+22 county fair association for use in conducting, operating, or
2393+23 promoting the county fair.
2394+24 (3) Personal property purchased by a not-for-profit arts
2395+25 or cultural organization that establishes, by proof required
2396+
2397+
2398+
2399+
2400+
2401+ SB3476 Enrolled - 67 - LRB103 34190 HLH 64013 b
2402+
2403+
2404+SB3476 Enrolled- 68 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 68 - LRB103 34190 HLH 64013 b
2405+ SB3476 Enrolled - 68 - LRB103 34190 HLH 64013 b
2406+1 by the Department by rule, that it has received an exemption
2407+2 under Section 501(c)(3) of the Internal Revenue Code and that
2408+3 is organized and operated primarily for the presentation or
2409+4 support of arts or cultural programming, activities, or
2410+5 services. These organizations include, but are not limited to,
2411+6 music and dramatic arts organizations such as symphony
2412+7 orchestras and theatrical groups, arts and cultural service
2413+8 organizations, local arts councils, visual arts organizations,
2414+9 and media arts organizations. On and after July 1, 2001 (the
2415+10 effective date of Public Act 92-35), however, an entity
2416+11 otherwise eligible for this exemption shall not make tax-free
2417+12 purchases unless it has an active identification number issued
2418+13 by the Department.
2419+14 (4) Legal tender, currency, medallions, or gold or silver
2420+15 coinage issued by the State of Illinois, the government of the
2421+16 United States of America, or the government of any foreign
2422+17 country, and bullion.
2423+18 (5) Until July 1, 2003 and beginning again on September 1,
2424+19 2004 through August 30, 2014, graphic arts machinery and
2425+20 equipment, including repair and replacement parts, both new
2426+21 and used, and including that manufactured on special order or
2427+22 purchased for lease, certified by the purchaser to be used
2428+23 primarily for graphic arts production. Equipment includes
2429+24 chemicals or chemicals acting as catalysts but only if the
2430+25 chemicals or chemicals acting as catalysts effect a direct and
2431+26 immediate change upon a graphic arts product. Beginning on
2432+
2433+
2434+
2435+
2436+
2437+ SB3476 Enrolled - 68 - LRB103 34190 HLH 64013 b
2438+
2439+
2440+SB3476 Enrolled- 69 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 69 - LRB103 34190 HLH 64013 b
2441+ SB3476 Enrolled - 69 - LRB103 34190 HLH 64013 b
2442+1 July 1, 2017, graphic arts machinery and equipment is included
2443+2 in the manufacturing and assembling machinery and equipment
2444+3 exemption under Section 2 of this Act.
2445+4 (6) Personal property purchased from a teacher-sponsored
2446+5 student organization affiliated with an elementary or
2447+6 secondary school located in Illinois.
2448+7 (7) Farm machinery and equipment, both new and used,
2449+8 including that manufactured on special order, certified by the
2450+9 purchaser to be used primarily for production agriculture or
2451+10 State or federal agricultural programs, including individual
2452+11 replacement parts for the machinery and equipment, including
2453+12 machinery and equipment purchased for lease, and including
2454+13 implements of husbandry defined in Section 1-130 of the
2455+14 Illinois Vehicle Code, farm machinery and agricultural
2456+15 chemical and fertilizer spreaders, and nurse wagons required
2457+16 to be registered under Section 3-809 of the Illinois Vehicle
2458+17 Code, but excluding other motor vehicles required to be
2459+18 registered under the Illinois Vehicle Code. Horticultural
2460+19 polyhouses or hoop houses used for propagating, growing, or
2461+20 overwintering plants shall be considered farm machinery and
2462+21 equipment under this item (7). Agricultural chemical tender
2463+22 tanks and dry boxes shall include units sold separately from a
2464+23 motor vehicle required to be licensed and units sold mounted
2465+24 on a motor vehicle required to be licensed if the selling price
2466+25 of the tender is separately stated.
2467+26 Farm machinery and equipment shall include precision
2468+
2469+
2470+
2471+
2472+
2473+ SB3476 Enrolled - 69 - LRB103 34190 HLH 64013 b
2474+
2475+
2476+SB3476 Enrolled- 70 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 70 - LRB103 34190 HLH 64013 b
2477+ SB3476 Enrolled - 70 - LRB103 34190 HLH 64013 b
2478+1 farming equipment that is installed or purchased to be
2479+2 installed on farm machinery and equipment, including, but not
2480+3 limited to, tractors, harvesters, sprayers, planters, seeders,
2481+4 or spreaders. Precision farming equipment includes, but is not
2482+5 limited to, soil testing sensors, computers, monitors,
2483+6 software, global positioning and mapping systems, and other
2484+7 such equipment.
2485+8 Farm machinery and equipment also includes computers,
2486+9 sensors, software, and related equipment used primarily in the
2487+10 computer-assisted operation of production agriculture
2488+11 facilities, equipment, and activities such as, but not limited
2489+12 to, the collection, monitoring, and correlation of animal and
2490+13 crop data for the purpose of formulating animal diets and
2491+14 agricultural chemicals.
2492+15 Beginning on January 1, 2024, farm machinery and equipment
2493+16 also includes electrical power generation equipment used
2494+17 primarily for production agriculture.
2495+18 This item (7) is exempt from the provisions of Section
2496+19 3-75.
2497+20 (8) Until June 30, 2013, fuel and petroleum products sold
2498+21 to or used by an air common carrier, certified by the carrier
2499+22 to be used for consumption, shipment, or storage in the
2500+23 conduct of its business as an air common carrier, for a flight
2501+24 destined for or returning from a location or locations outside
2502+25 the United States without regard to previous or subsequent
2503+26 domestic stopovers.
2504+
2505+
2506+
2507+
2508+
2509+ SB3476 Enrolled - 70 - LRB103 34190 HLH 64013 b
2510+
2511+
2512+SB3476 Enrolled- 71 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 71 - LRB103 34190 HLH 64013 b
2513+ SB3476 Enrolled - 71 - LRB103 34190 HLH 64013 b
2514+1 Beginning July 1, 2013, fuel and petroleum products sold
2515+2 to or used by an air carrier, certified by the carrier to be
2516+3 used for consumption, shipment, or storage in the conduct of
2517+4 its business as an air common carrier, for a flight that (i) is
2518+5 engaged in foreign trade or is engaged in trade between the
2519+6 United States and any of its possessions and (ii) transports
2520+7 at least one individual or package for hire from the city of
2521+8 origination to the city of final destination on the same
2522+9 aircraft, without regard to a change in the flight number of
2523+10 that aircraft.
2524+11 (9) Proceeds of mandatory service charges separately
2525+12 stated on customers' bills for the purchase and consumption of
2526+13 food and beverages acquired as an incident to the purchase of a
2527+14 service from a serviceman, to the extent that the proceeds of
2528+15 the service charge are in fact turned over as tips or as a
2529+16 substitute for tips to the employees who participate directly
2530+17 in preparing, serving, hosting or cleaning up the food or
2531+18 beverage function with respect to which the service charge is
2532+19 imposed.
2533+20 (10) Until July 1, 2003, oil field exploration, drilling,
2534+21 and production equipment, including (i) rigs and parts of
2535+22 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2536+23 pipe and tubular goods, including casing and drill strings,
2537+24 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2538+25 lines, (v) any individual replacement part for oil field
2539+26 exploration, drilling, and production equipment, and (vi)
2540+
2541+
2542+
2543+
2544+
2545+ SB3476 Enrolled - 71 - LRB103 34190 HLH 64013 b
2546+
2547+
2548+SB3476 Enrolled- 72 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 72 - LRB103 34190 HLH 64013 b
2549+ SB3476 Enrolled - 72 - LRB103 34190 HLH 64013 b
2550+1 machinery and equipment purchased for lease; but excluding
2551+2 motor vehicles required to be registered under the Illinois
2552+3 Vehicle Code.
2553+4 (11) Proceeds from the sale of photoprocessing machinery
2554+5 and equipment, including repair and replacement parts, both
2555+6 new and used, including that manufactured on special order,
2556+7 certified by the purchaser to be used primarily for
2557+8 photoprocessing, and including photoprocessing machinery and
2558+9 equipment purchased for lease.
2559+10 (12) Until July 1, 2028, coal and aggregate exploration,
2560+11 mining, off-highway hauling, processing, maintenance, and
2561+12 reclamation equipment, including replacement parts and
2562+13 equipment, and including equipment purchased for lease, but
2563+14 excluding motor vehicles required to be registered under the
2564+15 Illinois Vehicle Code. The changes made to this Section by
2565+16 Public Act 97-767 apply on and after July 1, 2003, but no claim
2566+17 for credit or refund is allowed on or after August 16, 2013
2567+18 (the effective date of Public Act 98-456) for such taxes paid
2568+19 during the period beginning July 1, 2003 and ending on August
2569+20 16, 2013 (the effective date of Public Act 98-456).
2570+21 (13) Semen used for artificial insemination of livestock
2571+22 for direct agricultural production.
2572+23 (14) Horses, or interests in horses, registered with and
2573+24 meeting the requirements of any of the Arabian Horse Club
2574+25 Registry of America, Appaloosa Horse Club, American Quarter
2575+26 Horse Association, United States Trotting Association, or
2576+
2577+
2578+
2579+
2580+
2581+ SB3476 Enrolled - 72 - LRB103 34190 HLH 64013 b
2582+
2583+
2584+SB3476 Enrolled- 73 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 73 - LRB103 34190 HLH 64013 b
2585+ SB3476 Enrolled - 73 - LRB103 34190 HLH 64013 b
2586+1 Jockey Club, as appropriate, used for purposes of breeding or
2587+2 racing for prizes. This item (14) is exempt from the
2588+3 provisions of Section 3-75, and the exemption provided for
2589+4 under this item (14) applies for all periods beginning May 30,
2590+5 1995, but no claim for credit or refund is allowed on or after
2591+6 January 1, 2008 (the effective date of Public Act 95-88) for
2592+7 such taxes paid during the period beginning May 30, 2000 and
2593+8 ending on January 1, 2008 (the effective date of Public Act
2594+9 95-88).
2595+10 (15) Computers and communications equipment utilized for
2596+11 any hospital purpose and equipment used in the diagnosis,
2597+12 analysis, or treatment of hospital patients purchased by a
2598+13 lessor who leases the equipment, under a lease of one year or
2599+14 longer executed or in effect at the time the lessor would
2600+15 otherwise be subject to the tax imposed by this Act, to a
2601+16 hospital that has been issued an active tax exemption
2602+17 identification number by the Department under Section 1g of
2603+18 the Retailers' Occupation Tax Act. If the equipment is leased
2604+19 in a manner that does not qualify for this exemption or is used
2605+20 in any other non-exempt manner, the lessor shall be liable for
2606+21 the tax imposed under this Act or the Use Tax Act, as the case
2607+22 may be, based on the fair market value of the property at the
2608+23 time the non-qualifying use occurs. No lessor shall collect or
2609+24 attempt to collect an amount (however designated) that
2610+25 purports to reimburse that lessor for the tax imposed by this
2611+26 Act or the Use Tax Act, as the case may be, if the tax has not
2612+
2613+
2614+
2615+
2616+
2617+ SB3476 Enrolled - 73 - LRB103 34190 HLH 64013 b
2618+
2619+
2620+SB3476 Enrolled- 74 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 74 - LRB103 34190 HLH 64013 b
2621+ SB3476 Enrolled - 74 - LRB103 34190 HLH 64013 b
2622+1 been paid by the lessor. If a lessor improperly collects any
2623+2 such amount from the lessee, the lessee shall have a legal
2624+3 right to claim a refund of that amount from the lessor. If,
2625+4 however, that amount is not refunded to the lessee for any
2626+5 reason, the lessor is liable to pay that amount to the
2627+6 Department.
2628+7 (16) Personal property purchased by a lessor who leases
2629+8 the property, under a lease of one year or longer executed or
2630+9 in effect at the time the lessor would otherwise be subject to
2631+10 the tax imposed by this Act, to a governmental body that has
2632+11 been issued an active tax exemption identification number by
2633+12 the Department under Section 1g of the Retailers' Occupation
2634+13 Tax Act. If the property is leased in a manner that does not
2635+14 qualify for this exemption or is used in any other non-exempt
2636+15 manner, the lessor shall be liable for the tax imposed under
2637+16 this Act or the Use Tax Act, as the case may be, based on the
2638+17 fair market value of the property at the time the
2639+18 non-qualifying use occurs. No lessor shall collect or attempt
2640+19 to collect an amount (however designated) that purports to
2641+20 reimburse that lessor for the tax imposed by this Act or the
2642+21 Use Tax Act, as the case may be, if the tax has not been paid
2643+22 by the lessor. If a lessor improperly collects any such amount
2644+23 from the lessee, the lessee shall have a legal right to claim a
2645+24 refund of that amount from the lessor. If, however, that
2646+25 amount is not refunded to the lessee for any reason, the lessor
2647+26 is liable to pay that amount to the Department.
2648+
2649+
2650+
2651+
2652+
2653+ SB3476 Enrolled - 74 - LRB103 34190 HLH 64013 b
2654+
2655+
2656+SB3476 Enrolled- 75 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 75 - LRB103 34190 HLH 64013 b
2657+ SB3476 Enrolled - 75 - LRB103 34190 HLH 64013 b
2658+1 (17) Beginning with taxable years ending on or after
2659+2 December 31, 1995 and ending with taxable years ending on or
2660+3 before December 31, 2004, personal property that is donated
2661+4 for disaster relief to be used in a State or federally declared
2662+5 disaster area in Illinois or bordering Illinois by a
2663+6 manufacturer or retailer that is registered in this State to a
2664+7 corporation, society, association, foundation, or institution
2665+8 that has been issued a sales tax exemption identification
2666+9 number by the Department that assists victims of the disaster
2667+10 who reside within the declared disaster area.
2668+11 (18) Beginning with taxable years ending on or after
2669+12 December 31, 1995 and ending with taxable years ending on or
2670+13 before December 31, 2004, personal property that is used in
2671+14 the performance of infrastructure repairs in this State,
2672+15 including, but not limited to, municipal roads and streets,
2673+16 access roads, bridges, sidewalks, waste disposal systems,
2674+17 water and sewer line extensions, water distribution and
2675+18 purification facilities, storm water drainage and retention
2676+19 facilities, and sewage treatment facilities, resulting from a
2677+20 State or federally declared disaster in Illinois or bordering
2678+21 Illinois when such repairs are initiated on facilities located
2679+22 in the declared disaster area within 6 months after the
2680+23 disaster.
2681+24 (19) Beginning July 1, 1999, game or game birds purchased
2682+25 at a "game breeding and hunting preserve area" as that term is
2683+26 used in the Wildlife Code. This paragraph is exempt from the
2684+
2685+
2686+
2687+
2688+
2689+ SB3476 Enrolled - 75 - LRB103 34190 HLH 64013 b
2690+
2691+
2692+SB3476 Enrolled- 76 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 76 - LRB103 34190 HLH 64013 b
2693+ SB3476 Enrolled - 76 - LRB103 34190 HLH 64013 b
2694+1 provisions of Section 3-75.
2695+2 (20) A motor vehicle, as that term is defined in Section
2696+3 1-146 of the Illinois Vehicle Code, that is donated to a
2697+4 corporation, limited liability company, society, association,
2698+5 foundation, or institution that is determined by the
2699+6 Department to be organized and operated exclusively for
2700+7 educational purposes. For purposes of this exemption, "a
2701+8 corporation, limited liability company, society, association,
2702+9 foundation, or institution organized and operated exclusively
2703+10 for educational purposes" means all tax-supported public
2704+11 schools, private schools that offer systematic instruction in
2705+12 useful branches of learning by methods common to public
2706+13 schools and that compare favorably in their scope and
2707+14 intensity with the course of study presented in tax-supported
2708+15 schools, and vocational or technical schools or institutes
2709+16 organized and operated exclusively to provide a course of
2710+17 study of not less than 6 weeks duration and designed to prepare
2711+18 individuals to follow a trade or to pursue a manual,
2712+19 technical, mechanical, industrial, business, or commercial
2713+20 occupation.
2714+21 (21) Beginning January 1, 2000, personal property,
2715+22 including food, purchased through fundraising events for the
2716+23 benefit of a public or private elementary or secondary school,
2717+24 a group of those schools, or one or more school districts if
2718+25 the events are sponsored by an entity recognized by the school
2719+26 district that consists primarily of volunteers and includes
2720+
2721+
2722+
2723+
2724+
2725+ SB3476 Enrolled - 76 - LRB103 34190 HLH 64013 b
2726+
2727+
2728+SB3476 Enrolled- 77 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 77 - LRB103 34190 HLH 64013 b
2729+ SB3476 Enrolled - 77 - LRB103 34190 HLH 64013 b
2730+1 parents and teachers of the school children. This paragraph
2731+2 does not apply to fundraising events (i) for the benefit of
2732+3 private home instruction or (ii) for which the fundraising
2733+4 entity purchases the personal property sold at the events from
2734+5 another individual or entity that sold the property for the
2735+6 purpose of resale by the fundraising entity and that profits
2736+7 from the sale to the fundraising entity. This paragraph is
2737+8 exempt from the provisions of Section 3-75.
2738+9 (22) Beginning January 1, 2000 and through December 31,
2739+10 2001, new or used automatic vending machines that prepare and
2740+11 serve hot food and beverages, including coffee, soup, and
2741+12 other items, and replacement parts for these machines.
2742+13 Beginning January 1, 2002 and through June 30, 2003, machines
2743+14 and parts for machines used in commercial, coin-operated
2744+15 amusement and vending business if a use or occupation tax is
2745+16 paid on the gross receipts derived from the use of the
2746+17 commercial, coin-operated amusement and vending machines. This
2747+18 paragraph is exempt from the provisions of Section 3-75.
2748+19 (23) Beginning August 23, 2001 and through June 30, 2016,
2749+20 food for human consumption that is to be consumed off the
2750+21 premises where it is sold (other than alcoholic beverages,
2751+22 soft drinks, and food that has been prepared for immediate
2752+23 consumption) and prescription and nonprescription medicines,
2753+24 drugs, medical appliances, and insulin, urine testing
2754+25 materials, syringes, and needles used by diabetics, for human
2755+26 use, when purchased for use by a person receiving medical
2756+
2757+
2758+
2759+
2760+
2761+ SB3476 Enrolled - 77 - LRB103 34190 HLH 64013 b
2762+
2763+
2764+SB3476 Enrolled- 78 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 78 - LRB103 34190 HLH 64013 b
2765+ SB3476 Enrolled - 78 - LRB103 34190 HLH 64013 b
2766+1 assistance under Article V of the Illinois Public Aid Code who
2767+2 resides in a licensed long-term care facility, as defined in
2768+3 the Nursing Home Care Act, or in a licensed facility as defined
2769+4 in the ID/DD Community Care Act, the MC/DD Act, or the
2770+5 Specialized Mental Health Rehabilitation Act of 2013.
2771+6 (24) Beginning on August 2, 2001 (the effective date of
2772+7 Public Act 92-227), computers and communications equipment
2773+8 utilized for any hospital purpose and equipment used in the
2774+9 diagnosis, analysis, or treatment of hospital patients
2775+10 purchased by a lessor who leases the equipment, under a lease
2776+11 of one year or longer executed or in effect at the time the
2777+12 lessor would otherwise be subject to the tax imposed by this
2778+13 Act, to a hospital that has been issued an active tax exemption
2779+14 identification number by the Department under Section 1g of
2780+15 the Retailers' Occupation Tax Act. If the equipment is leased
2781+16 in a manner that does not qualify for this exemption or is used
2782+17 in any other nonexempt manner, the lessor shall be liable for
2783+18 the tax imposed under this Act or the Use Tax Act, as the case
2784+19 may be, based on the fair market value of the property at the
2785+20 time the nonqualifying use occurs. No lessor shall collect or
2786+21 attempt to collect an amount (however designated) that
2787+22 purports to reimburse that lessor for the tax imposed by this
2788+23 Act or the Use Tax Act, as the case may be, if the tax has not
2789+24 been paid by the lessor. If a lessor improperly collects any
2790+25 such amount from the lessee, the lessee shall have a legal
2791+26 right to claim a refund of that amount from the lessor. If,
2792+
2793+
2794+
2795+
2796+
2797+ SB3476 Enrolled - 78 - LRB103 34190 HLH 64013 b
2798+
2799+
2800+SB3476 Enrolled- 79 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 79 - LRB103 34190 HLH 64013 b
2801+ SB3476 Enrolled - 79 - LRB103 34190 HLH 64013 b
2802+1 however, that amount is not refunded to the lessee for any
2803+2 reason, the lessor is liable to pay that amount to the
2804+3 Department. This paragraph is exempt from the provisions of
2805+4 Section 3-75.
2806+5 (25) Beginning on August 2, 2001 (the effective date of
2807+6 Public Act 92-227), personal property purchased by a lessor
2808+7 who leases the property, under a lease of one year or longer
2809+8 executed or in effect at the time the lessor would otherwise be
2810+9 subject to the tax imposed by this Act, to a governmental body
2811+10 that has been issued an active tax exemption identification
2812+11 number by the Department under Section 1g of the Retailers'
2813+12 Occupation Tax Act. If the property is leased in a manner that
2814+13 does not qualify for this exemption or is used in any other
2815+14 nonexempt manner, the lessor shall be liable for the tax
2816+15 imposed under this Act or the Use Tax Act, as the case may be,
2817+16 based on the fair market value of the property at the time the
2818+17 nonqualifying use occurs. No lessor shall collect or attempt
2819+18 to collect an amount (however designated) that purports to
2820+19 reimburse that lessor for the tax imposed by this Act or the
2821+20 Use Tax Act, as the case may be, if the tax has not been paid
2822+21 by the lessor. If a lessor improperly collects any such amount
2823+22 from the lessee, the lessee shall have a legal right to claim a
2824+23 refund of that amount from the lessor. If, however, that
2825+24 amount is not refunded to the lessee for any reason, the lessor
2826+25 is liable to pay that amount to the Department. This paragraph
2827+26 is exempt from the provisions of Section 3-75.
2828+
2829+
2830+
2831+
2832+
2833+ SB3476 Enrolled - 79 - LRB103 34190 HLH 64013 b
2834+
2835+
2836+SB3476 Enrolled- 80 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 80 - LRB103 34190 HLH 64013 b
2837+ SB3476 Enrolled - 80 - LRB103 34190 HLH 64013 b
2838+1 (26) Beginning January 1, 2008, tangible personal property
2839+2 used in the construction or maintenance of a community water
2840+3 supply, as defined under Section 3.145 of the Environmental
2841+4 Protection Act, that is operated by a not-for-profit
2842+5 corporation that holds a valid water supply permit issued
2843+6 under Title IV of the Environmental Protection Act. This
2844+7 paragraph is exempt from the provisions of Section 3-75.
2845+8 (27) Beginning January 1, 2010 and continuing through
2846+9 December 31, 2029, materials, parts, equipment, components,
2847+10 and furnishings incorporated into or upon an aircraft as part
2848+11 of the modification, refurbishment, completion, replacement,
2849+12 repair, or maintenance of the aircraft. This exemption
2850+13 includes consumable supplies used in the modification,
2851+14 refurbishment, completion, replacement, repair, and
2852+15 maintenance of aircraft. However, until January 1, 2024, this
2853+16 exemption excludes any materials, parts, equipment,
2854+17 components, and consumable supplies used in the modification,
2855+18 replacement, repair, and maintenance of aircraft engines or
2856+19 power plants, whether such engines or power plants are
2857+20 installed or uninstalled upon any such aircraft. "Consumable
2858+21 supplies" include, but are not limited to, adhesive, tape,
2859+22 sandpaper, general purpose lubricants, cleaning solution,
2860+23 latex gloves, and protective films.
2861+24 Beginning January 1, 2010 and continuing through December
2862+25 31, 2023, this exemption applies only to the use of qualifying
2863+26 tangible personal property transferred incident to the
2864+
2865+
2866+
2867+
2868+
2869+ SB3476 Enrolled - 80 - LRB103 34190 HLH 64013 b
2870+
2871+
2872+SB3476 Enrolled- 81 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 81 - LRB103 34190 HLH 64013 b
2873+ SB3476 Enrolled - 81 - LRB103 34190 HLH 64013 b
2874+1 modification, refurbishment, completion, replacement, repair,
2875+2 or maintenance of aircraft by persons who (i) hold an Air
2876+3 Agency Certificate and are empowered to operate an approved
2877+4 repair station by the Federal Aviation Administration, (ii)
2878+5 have a Class IV Rating, and (iii) conduct operations in
2879+6 accordance with Part 145 of the Federal Aviation Regulations.
2880+7 From January 1, 2024 through December 31, 2029, this exemption
2881+8 applies only to the use of qualifying tangible personal
2882+9 property by: (A) persons who modify, refurbish, complete,
2883+10 repair, replace, or maintain aircraft and who (i) hold an Air
2884+11 Agency Certificate and are empowered to operate an approved
2885+12 repair station by the Federal Aviation Administration, (ii)
2886+13 have a Class IV Rating, and (iii) conduct operations in
2887+14 accordance with Part 145 of the Federal Aviation Regulations;
2888+15 and (B) persons who engage in the modification, replacement,
2889+16 repair, and maintenance of aircraft engines or power plants
2890+17 without regard to whether or not those persons meet the
2891+18 qualifications of item (A).
2892+19 The exemption does not include aircraft operated by a
2893+20 commercial air carrier providing scheduled passenger air
2894+21 service pursuant to authority issued under Part 121 or Part
2895+22 129 of the Federal Aviation Regulations. The changes made to
2896+23 this paragraph (27) by Public Act 98-534 are declarative of
2897+24 existing law. It is the intent of the General Assembly that the
2898+25 exemption under this paragraph (27) applies continuously from
2899+26 January 1, 2010 through December 31, 2024; however, no claim
2900+
2901+
2902+
2903+
2904+
2905+ SB3476 Enrolled - 81 - LRB103 34190 HLH 64013 b
2906+
2907+
2908+SB3476 Enrolled- 82 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 82 - LRB103 34190 HLH 64013 b
2909+ SB3476 Enrolled - 82 - LRB103 34190 HLH 64013 b
2910+1 for credit or refund is allowed for taxes paid as a result of
2911+2 the disallowance of this exemption on or after January 1, 2015
2912+3 and prior to February 5, 2020 (the effective date of Public Act
2913+4 101-629).
2914+5 (28) Tangible personal property purchased by a
2915+6 public-facilities corporation, as described in Section
2916+7 11-65-10 of the Illinois Municipal Code, for purposes of
2917+8 constructing or furnishing a municipal convention hall, but
2918+9 only if the legal title to the municipal convention hall is
2919+10 transferred to the municipality without any further
2920+11 consideration by or on behalf of the municipality at the time
2921+12 of the completion of the municipal convention hall or upon the
2922+13 retirement or redemption of any bonds or other debt
2923+14 instruments issued by the public-facilities corporation in
2924+15 connection with the development of the municipal convention
2925+16 hall. This exemption includes existing public-facilities
2926+17 corporations as provided in Section 11-65-25 of the Illinois
2927+18 Municipal Code. This paragraph is exempt from the provisions
2928+19 of Section 3-75.
2929+20 (29) Beginning January 1, 2017 and through December 31,
2930+21 2026, menstrual pads, tampons, and menstrual cups.
2931+22 (30) Tangible personal property transferred to a purchaser
2932+23 who is exempt from the tax imposed by this Act by operation of
2933+24 federal law. This paragraph is exempt from the provisions of
2934+25 Section 3-75.
2935+26 (31) Qualified tangible personal property used in the
2936+
2937+
2938+
2939+
2940+
2941+ SB3476 Enrolled - 82 - LRB103 34190 HLH 64013 b
2942+
2943+
2944+SB3476 Enrolled- 83 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 83 - LRB103 34190 HLH 64013 b
2945+ SB3476 Enrolled - 83 - LRB103 34190 HLH 64013 b
2946+1 construction or operation of a data center that has been
2947+2 granted a certificate of exemption by the Department of
2948+3 Commerce and Economic Opportunity, whether that tangible
2949+4 personal property is purchased by the owner, operator, or
2950+5 tenant of the data center or by a contractor or subcontractor
2951+6 of the owner, operator, or tenant. Data centers that would
2952+7 have qualified for a certificate of exemption prior to January
2953+8 1, 2020 had Public Act 101-31 been in effect, may apply for and
2954+9 obtain an exemption for subsequent purchases of computer
2955+10 equipment or enabling software purchased or leased to upgrade,
2956+11 supplement, or replace computer equipment or enabling software
2957+12 purchased or leased in the original investment that would have
2958+13 qualified.
2959+14 The Department of Commerce and Economic Opportunity shall
2960+15 grant a certificate of exemption under this item (31) to
2961+16 qualified data centers as defined by Section 605-1025 of the
2962+17 Department of Commerce and Economic Opportunity Law of the
2963+18 Civil Administrative Code of Illinois.
2964+19 For the purposes of this item (31):
2965+20 "Data center" means a building or a series of
2966+21 buildings rehabilitated or constructed to house working
2967+22 servers in one physical location or multiple sites within
2968+23 the State of Illinois.
2969+24 "Qualified tangible personal property" means:
2970+25 electrical systems and equipment; climate control and
2971+26 chilling equipment and systems; mechanical systems and
2972+
2973+
2974+
2975+
2976+
2977+ SB3476 Enrolled - 83 - LRB103 34190 HLH 64013 b
2978+
2979+
2980+SB3476 Enrolled- 84 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 84 - LRB103 34190 HLH 64013 b
2981+ SB3476 Enrolled - 84 - LRB103 34190 HLH 64013 b
2982+1 equipment; monitoring and secure systems; emergency
2983+2 generators; hardware; computers; servers; data storage
2984+3 devices; network connectivity equipment; racks; cabinets;
2985+4 telecommunications cabling infrastructure; raised floor
2986+5 systems; peripheral components or systems; software;
2987+6 mechanical, electrical, or plumbing systems; battery
2988+7 systems; cooling systems and towers; temperature control
2989+8 systems; other cabling; and other data center
2990+9 infrastructure equipment and systems necessary to operate
2991+10 qualified tangible personal property, including fixtures;
2992+11 and component parts of any of the foregoing, including
2993+12 installation, maintenance, repair, refurbishment, and
2994+13 replacement of qualified tangible personal property to
2995+14 generate, transform, transmit, distribute, or manage
2996+15 electricity necessary to operate qualified tangible
2997+16 personal property; and all other tangible personal
2998+17 property that is essential to the operations of a computer
2999+18 data center. The term "qualified tangible personal
3000+19 property" also includes building materials physically
3001+20 incorporated into in to the qualifying data center. To
3002+21 document the exemption allowed under this Section, the
3003+22 retailer must obtain from the purchaser a copy of the
3004+23 certificate of eligibility issued by the Department of
3005+24 Commerce and Economic Opportunity.
3006+25 This item (31) is exempt from the provisions of Section
3007+26 3-75.
3008+
3009+
3010+
3011+
3012+
3013+ SB3476 Enrolled - 84 - LRB103 34190 HLH 64013 b
3014+
3015+
3016+SB3476 Enrolled- 85 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 85 - LRB103 34190 HLH 64013 b
3017+ SB3476 Enrolled - 85 - LRB103 34190 HLH 64013 b
3018+1 (32) Beginning July 1, 2022, breast pumps, breast pump
3019+2 collection and storage supplies, and breast pump kits. This
3020+3 item (32) is exempt from the provisions of Section 3-75. As
3021+4 used in this item (32):
3022+5 "Breast pump" means an electrically controlled or
3023+6 manually controlled pump device designed or marketed to be
3024+7 used to express milk from a human breast during lactation,
3025+8 including the pump device and any battery, AC adapter, or
3026+9 other power supply unit that is used to power the pump
3027+10 device and is packaged and sold with the pump device at the
3028+11 time of sale.
3029+12 "Breast pump collection and storage supplies" means
3030+13 items of tangible personal property designed or marketed
3031+14 to be used in conjunction with a breast pump to collect
3032+15 milk expressed from a human breast and to store collected
3033+16 milk until it is ready for consumption.
3034+17 "Breast pump collection and storage supplies"
3035+18 includes, but is not limited to: breast shields and breast
3036+19 shield connectors; breast pump tubes and tubing adapters;
3037+20 breast pump valves and membranes; backflow protectors and
3038+21 backflow protector adaptors; bottles and bottle caps
3039+22 specific to the operation of the breast pump; and breast
3040+23 milk storage bags.
3041+24 "Breast pump collection and storage supplies" does not
3042+25 include: (1) bottles and bottle caps not specific to the
3043+26 operation of the breast pump; (2) breast pump travel bags
3044+
3045+
3046+
3047+
3048+
3049+ SB3476 Enrolled - 85 - LRB103 34190 HLH 64013 b
3050+
3051+
3052+SB3476 Enrolled- 86 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 86 - LRB103 34190 HLH 64013 b
3053+ SB3476 Enrolled - 86 - LRB103 34190 HLH 64013 b
3054+1 and other similar carrying accessories, including ice
3055+2 packs, labels, and other similar products; (3) breast pump
3056+3 cleaning supplies; (4) nursing bras, bra pads, breast
3057+4 shells, and other similar products; and (5) creams,
3058+5 ointments, and other similar products that relieve
3059+6 breastfeeding-related symptoms or conditions of the
3060+7 breasts or nipples, unless sold as part of a breast pump
3061+8 kit that is pre-packaged by the breast pump manufacturer
3062+9 or distributor.
3063+10 "Breast pump kit" means a kit that: (1) contains no
3064+11 more than a breast pump, breast pump collection and
3065+12 storage supplies, a rechargeable battery for operating the
3066+13 breast pump, a breastmilk cooler, bottle stands, ice
3067+14 packs, and a breast pump carrying case; and (2) is
3068+15 pre-packaged as a breast pump kit by the breast pump
3069+16 manufacturer or distributor.
3070+17 (33) Tangible personal property sold by or on behalf of
3071+18 the State Treasurer pursuant to the Revised Uniform Unclaimed
3072+19 Property Act. This item (33) is exempt from the provisions of
3073+20 Section 3-75.
3074+21 (34) Beginning on January 1, 2024, tangible personal
3075+22 property purchased by an active duty member of the armed
3076+23 forces of the United States who presents valid military
3077+24 identification and purchases the property using a form of
3078+25 payment where the federal government is the payor. The member
3079+26 of the armed forces must complete, at the point of sale, a form
3080+
3081+
3082+
3083+
3084+
3085+ SB3476 Enrolled - 86 - LRB103 34190 HLH 64013 b
3086+
3087+
3088+SB3476 Enrolled- 87 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 87 - LRB103 34190 HLH 64013 b
3089+ SB3476 Enrolled - 87 - LRB103 34190 HLH 64013 b
3090+1 prescribed by the Department of Revenue documenting that the
3091+2 transaction is eligible for the exemption under this
3092+3 paragraph. Retailers must keep the form as documentation of
3093+4 the exemption in their records for a period of not less than 6
3094+5 years. "Armed forces of the United States" means the United
3095+6 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
3096+7 This paragraph is exempt from the provisions of Section 3-75.
3097+8 (35) Beginning July 1, 2024, home-delivered meals provided
3098+9 to Medicare or Medicaid recipients when payment is made by an
3099+10 intermediary, such as a Medicare Administrative Contractor, a
3100+11 Managed Care Organization, or a Medicare Advantage
3101+12 Organization, pursuant to a government contract. This
3102+13 paragraph (35) is exempt from the provisions of Section 3-75.
3103+14 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
3104+15 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
3105+16 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
3106+17 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
3107+18 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
3108+19 revised 9-14-23.)
3109+20 Section 15. The Service Occupation Tax Act is amended by
3110+21 changing Section 3-5 as follows:
3111+22 (35 ILCS 115/3-5)
3112+23 (Text of Section before amendment by P.A. 103-384)
3113+24 Sec. 3-5. Exemptions. The following tangible personal
3114+
3115+
3116+
3117+
3118+
3119+ SB3476 Enrolled - 87 - LRB103 34190 HLH 64013 b
3120+
3121+
3122+SB3476 Enrolled- 88 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 88 - LRB103 34190 HLH 64013 b
3123+ SB3476 Enrolled - 88 - LRB103 34190 HLH 64013 b
3124+1 property is exempt from the tax imposed by this Act:
3125+2 (1) Personal property sold by a corporation, society,
3126+3 association, foundation, institution, or organization, other
3127+4 than a limited liability company, that is organized and
3128+5 operated as a not-for-profit service enterprise for the
3129+6 benefit of persons 65 years of age or older if the personal
3130+7 property was not purchased by the enterprise for the purpose
3131+8 of resale by the enterprise.
3132+9 (2) Personal property purchased by a not-for-profit
3133+10 Illinois county fair association for use in conducting,
3134+11 operating, or promoting the county fair.
3135+12 (3) Personal property purchased by any not-for-profit arts
3136+13 or cultural organization that establishes, by proof required
3137+14 by the Department by rule, that it has received an exemption
3138+15 under Section 501(c)(3) of the Internal Revenue Code and that
3139+16 is organized and operated primarily for the presentation or
3140+17 support of arts or cultural programming, activities, or
3141+18 services. These organizations include, but are not limited to,
3142+19 music and dramatic arts organizations such as symphony
3143+20 orchestras and theatrical groups, arts and cultural service
3144+21 organizations, local arts councils, visual arts organizations,
3145+22 and media arts organizations. On and after July 1, 2001 (the
3146+23 effective date of Public Act 92-35), however, an entity
3147+24 otherwise eligible for this exemption shall not make tax-free
3148+25 purchases unless it has an active identification number issued
3149+26 by the Department.
3150+
3151+
3152+
3153+
3154+
3155+ SB3476 Enrolled - 88 - LRB103 34190 HLH 64013 b
3156+
3157+
3158+SB3476 Enrolled- 89 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 89 - LRB103 34190 HLH 64013 b
3159+ SB3476 Enrolled - 89 - LRB103 34190 HLH 64013 b
3160+1 (4) Legal tender, currency, medallions, or gold or silver
3161+2 coinage issued by the State of Illinois, the government of the
3162+3 United States of America, or the government of any foreign
3163+4 country, and bullion.
3164+5 (5) Until July 1, 2003 and beginning again on September 1,
3165+6 2004 through August 30, 2014, graphic arts machinery and
3166+7 equipment, including repair and replacement parts, both new
3167+8 and used, and including that manufactured on special order or
3168+9 purchased for lease, certified by the purchaser to be used
3169+10 primarily for graphic arts production. Equipment includes
3170+11 chemicals or chemicals acting as catalysts but only if the
3171+12 chemicals or chemicals acting as catalysts effect a direct and
3172+13 immediate change upon a graphic arts product. Beginning on
3173+14 July 1, 2017, graphic arts machinery and equipment is included
3174+15 in the manufacturing and assembling machinery and equipment
3175+16 exemption under Section 2 of this Act.
3176+17 (6) Personal property sold by a teacher-sponsored student
3177+18 organization affiliated with an elementary or secondary school
3178+19 located in Illinois.
3179+20 (7) Farm machinery and equipment, both new and used,
3180+21 including that manufactured on special order, certified by the
3181+22 purchaser to be used primarily for production agriculture or
3182+23 State or federal agricultural programs, including individual
3183+24 replacement parts for the machinery and equipment, including
3184+25 machinery and equipment purchased for lease, and including
3185+26 implements of husbandry defined in Section 1-130 of the
3186+
3187+
3188+
3189+
3190+
3191+ SB3476 Enrolled - 89 - LRB103 34190 HLH 64013 b
3192+
3193+
3194+SB3476 Enrolled- 90 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 90 - LRB103 34190 HLH 64013 b
3195+ SB3476 Enrolled - 90 - LRB103 34190 HLH 64013 b
3196+1 Illinois Vehicle Code, farm machinery and agricultural
3197+2 chemical and fertilizer spreaders, and nurse wagons required
3198+3 to be registered under Section 3-809 of the Illinois Vehicle
3199+4 Code, but excluding other motor vehicles required to be
3200+5 registered under the Illinois Vehicle Code. Horticultural
3201+6 polyhouses or hoop houses used for propagating, growing, or
3202+7 overwintering plants shall be considered farm machinery and
3203+8 equipment under this item (7). Agricultural chemical tender
3204+9 tanks and dry boxes shall include units sold separately from a
3205+10 motor vehicle required to be licensed and units sold mounted
3206+11 on a motor vehicle required to be licensed if the selling price
3207+12 of the tender is separately stated.
3208+13 Farm machinery and equipment shall include precision
3209+14 farming equipment that is installed or purchased to be
3210+15 installed on farm machinery and equipment, including, but not
3211+16 limited to, tractors, harvesters, sprayers, planters, seeders,
3212+17 or spreaders. Precision farming equipment includes, but is not
3213+18 limited to, soil testing sensors, computers, monitors,
3214+19 software, global positioning and mapping systems, and other
3215+20 such equipment.
3216+21 Farm machinery and equipment also includes computers,
3217+22 sensors, software, and related equipment used primarily in the
3218+23 computer-assisted operation of production agriculture
3219+24 facilities, equipment, and activities such as, but not limited
3220+25 to, the collection, monitoring, and correlation of animal and
3221+26 crop data for the purpose of formulating animal diets and
3222+
3223+
3224+
3225+
3226+
3227+ SB3476 Enrolled - 90 - LRB103 34190 HLH 64013 b
3228+
3229+
3230+SB3476 Enrolled- 91 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 91 - LRB103 34190 HLH 64013 b
3231+ SB3476 Enrolled - 91 - LRB103 34190 HLH 64013 b
3232+1 agricultural chemicals.
3233+2 Beginning on January 1, 2024, farm machinery and equipment
3234+3 also includes electrical power generation equipment used
3235+4 primarily for production agriculture.
3236+5 This item (7) is exempt from the provisions of Section
3237+6 3-55.
3238+7 (8) Until June 30, 2013, fuel and petroleum products sold
3239+8 to or used by an air common carrier, certified by the carrier
3240+9 to be used for consumption, shipment, or storage in the
3241+10 conduct of its business as an air common carrier, for a flight
3242+11 destined for or returning from a location or locations outside
3243+12 the United States without regard to previous or subsequent
3244+13 domestic stopovers.
3245+14 Beginning July 1, 2013, fuel and petroleum products sold
3246+15 to or used by an air carrier, certified by the carrier to be
3247+16 used for consumption, shipment, or storage in the conduct of
3248+17 its business as an air common carrier, for a flight that (i) is
3249+18 engaged in foreign trade or is engaged in trade between the
3250+19 United States and any of its possessions and (ii) transports
3251+20 at least one individual or package for hire from the city of
3252+21 origination to the city of final destination on the same
3253+22 aircraft, without regard to a change in the flight number of
3254+23 that aircraft.
3255+24 (9) Proceeds of mandatory service charges separately
3256+25 stated on customers' bills for the purchase and consumption of
3257+26 food and beverages, to the extent that the proceeds of the
3258+
3259+
3260+
3261+
3262+
3263+ SB3476 Enrolled - 91 - LRB103 34190 HLH 64013 b
3264+
3265+
3266+SB3476 Enrolled- 92 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 92 - LRB103 34190 HLH 64013 b
3267+ SB3476 Enrolled - 92 - LRB103 34190 HLH 64013 b
3268+1 service charge are in fact turned over as tips or as a
3269+2 substitute for tips to the employees who participate directly
3270+3 in preparing, serving, hosting or cleaning up the food or
3271+4 beverage function with respect to which the service charge is
3272+5 imposed.
3273+6 (10) Until July 1, 2003, oil field exploration, drilling,
3274+7 and production equipment, including (i) rigs and parts of
3275+8 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3276+9 pipe and tubular goods, including casing and drill strings,
3277+10 (iii) pumps and pump-jack units, (iv) storage tanks and flow
3278+11 lines, (v) any individual replacement part for oil field
3279+12 exploration, drilling, and production equipment, and (vi)
3280+13 machinery and equipment purchased for lease; but excluding
3281+14 motor vehicles required to be registered under the Illinois
3282+15 Vehicle Code.
3283+16 (11) Photoprocessing machinery and equipment, including
3284+17 repair and replacement parts, both new and used, including
3285+18 that manufactured on special order, certified by the purchaser
3286+19 to be used primarily for photoprocessing, and including
3287+20 photoprocessing machinery and equipment purchased for lease.
3288+21 (12) Until July 1, 2028, coal and aggregate exploration,
3289+22 mining, off-highway hauling, processing, maintenance, and
3290+23 reclamation equipment, including replacement parts and
3291+24 equipment, and including equipment purchased for lease, but
3292+25 excluding motor vehicles required to be registered under the
3293+26 Illinois Vehicle Code. The changes made to this Section by
3294+
3295+
3296+
3297+
3298+
3299+ SB3476 Enrolled - 92 - LRB103 34190 HLH 64013 b
3300+
3301+
3302+SB3476 Enrolled- 93 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 93 - LRB103 34190 HLH 64013 b
3303+ SB3476 Enrolled - 93 - LRB103 34190 HLH 64013 b
3304+1 Public Act 97-767 apply on and after July 1, 2003, but no claim
3305+2 for credit or refund is allowed on or after August 16, 2013
3306+3 (the effective date of Public Act 98-456) for such taxes paid
3307+4 during the period beginning July 1, 2003 and ending on August
3308+5 16, 2013 (the effective date of Public Act 98-456).
3309+6 (13) Beginning January 1, 1992 and through June 30, 2016,
3310+7 food for human consumption that is to be consumed off the
3311+8 premises where it is sold (other than alcoholic beverages,
3312+9 soft drinks and food that has been prepared for immediate
3313+10 consumption) and prescription and non-prescription medicines,
3314+11 drugs, medical appliances, and insulin, urine testing
3315+12 materials, syringes, and needles used by diabetics, for human
3316+13 use, when purchased for use by a person receiving medical
3317+14 assistance under Article V of the Illinois Public Aid Code who
3318+15 resides in a licensed long-term care facility, as defined in
3319+16 the Nursing Home Care Act, or in a licensed facility as defined
3320+17 in the ID/DD Community Care Act, the MC/DD Act, or the
3321+18 Specialized Mental Health Rehabilitation Act of 2013.
3322+19 (14) Semen used for artificial insemination of livestock
3323+20 for direct agricultural production.
3324+21 (15) Horses, or interests in horses, registered with and
3325+22 meeting the requirements of any of the Arabian Horse Club
3326+23 Registry of America, Appaloosa Horse Club, American Quarter
3327+24 Horse Association, United States Trotting Association, or
3328+25 Jockey Club, as appropriate, used for purposes of breeding or
3329+26 racing for prizes. This item (15) is exempt from the
3330+
3331+
3332+
3333+
3334+
3335+ SB3476 Enrolled - 93 - LRB103 34190 HLH 64013 b
3336+
3337+
3338+SB3476 Enrolled- 94 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 94 - LRB103 34190 HLH 64013 b
3339+ SB3476 Enrolled - 94 - LRB103 34190 HLH 64013 b
3340+1 provisions of Section 3-55, and the exemption provided for
3341+2 under this item (15) applies for all periods beginning May 30,
3342+3 1995, but no claim for credit or refund is allowed on or after
3343+4 January 1, 2008 (the effective date of Public Act 95-88) for
3344+5 such taxes paid during the period beginning May 30, 2000 and
3345+6 ending on January 1, 2008 (the effective date of Public Act
3346+7 95-88).
3347+8 (16) Computers and communications equipment utilized for
3348+9 any hospital purpose and equipment used in the diagnosis,
3349+10 analysis, or treatment of hospital patients sold to a lessor
3350+11 who leases the equipment, under a lease of one year or longer
3351+12 executed or in effect at the time of the purchase, to a
3352+13 hospital that has been issued an active tax exemption
3353+14 identification number by the Department under Section 1g of
3354+15 the Retailers' Occupation Tax Act.
3355+16 (17) Personal property sold to a lessor who leases the
3356+17 property, under a lease of one year or longer executed or in
3357+18 effect at the time of the purchase, to a governmental body that
3358+19 has been issued an active tax exemption identification number
3359+20 by the Department under Section 1g of the Retailers'
3360+21 Occupation Tax Act.
3361+22 (18) Beginning with taxable years ending on or after
3362+23 December 31, 1995 and ending with taxable years ending on or
3363+24 before December 31, 2004, personal property that is donated
3364+25 for disaster relief to be used in a State or federally declared
3365+26 disaster area in Illinois or bordering Illinois by a
3366+
3367+
3368+
3369+
3370+
3371+ SB3476 Enrolled - 94 - LRB103 34190 HLH 64013 b
3372+
3373+
3374+SB3476 Enrolled- 95 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 95 - LRB103 34190 HLH 64013 b
3375+ SB3476 Enrolled - 95 - LRB103 34190 HLH 64013 b
3376+1 manufacturer or retailer that is registered in this State to a
3377+2 corporation, society, association, foundation, or institution
3378+3 that has been issued a sales tax exemption identification
3379+4 number by the Department that assists victims of the disaster
3380+5 who reside within the declared disaster area.
3381+6 (19) Beginning with taxable years ending on or after
3382+7 December 31, 1995 and ending with taxable years ending on or
3383+8 before December 31, 2004, personal property that is used in
3384+9 the performance of infrastructure repairs in this State,
3385+10 including, but not limited to, municipal roads and streets,
3386+11 access roads, bridges, sidewalks, waste disposal systems,
3387+12 water and sewer line extensions, water distribution and
3388+13 purification facilities, storm water drainage and retention
3389+14 facilities, and sewage treatment facilities, resulting from a
3390+15 State or federally declared disaster in Illinois or bordering
3391+16 Illinois when such repairs are initiated on facilities located
3392+17 in the declared disaster area within 6 months after the
3393+18 disaster.
3394+19 (20) Beginning July 1, 1999, game or game birds sold at a
3395+20 "game breeding and hunting preserve area" as that term is used
3396+21 in the Wildlife Code. This paragraph is exempt from the
3397+22 provisions of Section 3-55.
3398+23 (21) A motor vehicle, as that term is defined in Section
3399+24 1-146 of the Illinois Vehicle Code, that is donated to a
3400+25 corporation, limited liability company, society, association,
3401+26 foundation, or institution that is determined by the
3402+
3403+
3404+
3405+
3406+
3407+ SB3476 Enrolled - 95 - LRB103 34190 HLH 64013 b
3408+
3409+
3410+SB3476 Enrolled- 96 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 96 - LRB103 34190 HLH 64013 b
3411+ SB3476 Enrolled - 96 - LRB103 34190 HLH 64013 b
3412+1 Department to be organized and operated exclusively for
3413+2 educational purposes. For purposes of this exemption, "a
3414+3 corporation, limited liability company, society, association,
3415+4 foundation, or institution organized and operated exclusively
3416+5 for educational purposes" means all tax-supported public
3417+6 schools, private schools that offer systematic instruction in
3418+7 useful branches of learning by methods common to public
3419+8 schools and that compare favorably in their scope and
3420+9 intensity with the course of study presented in tax-supported
3421+10 schools, and vocational or technical schools or institutes
3422+11 organized and operated exclusively to provide a course of
3423+12 study of not less than 6 weeks duration and designed to prepare
3424+13 individuals to follow a trade or to pursue a manual,
3425+14 technical, mechanical, industrial, business, or commercial
3426+15 occupation.
3427+16 (22) Beginning January 1, 2000, personal property,
3428+17 including food, purchased through fundraising events for the
3429+18 benefit of a public or private elementary or secondary school,
3430+19 a group of those schools, or one or more school districts if
3431+20 the events are sponsored by an entity recognized by the school
3432+21 district that consists primarily of volunteers and includes
3433+22 parents and teachers of the school children. This paragraph
3434+23 does not apply to fundraising events (i) for the benefit of
3435+24 private home instruction or (ii) for which the fundraising
3436+25 entity purchases the personal property sold at the events from
3437+26 another individual or entity that sold the property for the
3438+
3439+
3440+
3441+
3442+
3443+ SB3476 Enrolled - 96 - LRB103 34190 HLH 64013 b
3444+
3445+
3446+SB3476 Enrolled- 97 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 97 - LRB103 34190 HLH 64013 b
3447+ SB3476 Enrolled - 97 - LRB103 34190 HLH 64013 b
3448+1 purpose of resale by the fundraising entity and that profits
3449+2 from the sale to the fundraising entity. This paragraph is
3450+3 exempt from the provisions of Section 3-55.
3451+4 (23) Beginning January 1, 2000 and through December 31,
3452+5 2001, new or used automatic vending machines that prepare and
3453+6 serve hot food and beverages, including coffee, soup, and
3454+7 other items, and replacement parts for these machines.
3455+8 Beginning January 1, 2002 and through June 30, 2003, machines
3456+9 and parts for machines used in commercial, coin-operated
3457+10 amusement and vending business if a use or occupation tax is
3458+11 paid on the gross receipts derived from the use of the
3459+12 commercial, coin-operated amusement and vending machines. This
3460+13 paragraph is exempt from the provisions of Section 3-55.
3461+14 (24) Beginning on August 2, 2001 (the effective date of
3462+15 Public Act 92-227), computers and communications equipment
3463+16 utilized for any hospital purpose and equipment used in the
3464+17 diagnosis, analysis, or treatment of hospital patients sold to
3465+18 a lessor who leases the equipment, under a lease of one year or
3466+19 longer executed or in effect at the time of the purchase, to a
3467+20 hospital that has been issued an active tax exemption
3468+21 identification number by the Department under Section 1g of
3469+22 the Retailers' Occupation Tax Act. This paragraph is exempt
3470+23 from the provisions of Section 3-55.
3471+24 (25) Beginning on August 2, 2001 (the effective date of
3472+25 Public Act 92-227), personal property sold to a lessor who
3473+26 leases the property, under a lease of one year or longer
3474+
3475+
3476+
3477+
3478+
3479+ SB3476 Enrolled - 97 - LRB103 34190 HLH 64013 b
3480+
3481+
3482+SB3476 Enrolled- 98 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 98 - LRB103 34190 HLH 64013 b
3483+ SB3476 Enrolled - 98 - LRB103 34190 HLH 64013 b
3484+1 executed or in effect at the time of the purchase, to a
3485+2 governmental body that has been issued an active tax exemption
3486+3 identification number by the Department under Section 1g of
3487+4 the Retailers' Occupation Tax Act. This paragraph is exempt
3488+5 from the provisions of Section 3-55.
3489+6 (26) Beginning on January 1, 2002 and through June 30,
3490+7 2016, tangible personal property purchased from an Illinois
3491+8 retailer by a taxpayer engaged in centralized purchasing
3492+9 activities in Illinois who will, upon receipt of the property
3493+10 in Illinois, temporarily store the property in Illinois (i)
3494+11 for the purpose of subsequently transporting it outside this
3495+12 State for use or consumption thereafter solely outside this
3496+13 State or (ii) for the purpose of being processed, fabricated,
3497+14 or manufactured into, attached to, or incorporated into other
3498+15 tangible personal property to be transported outside this
3499+16 State and thereafter used or consumed solely outside this
3500+17 State. The Director of Revenue shall, pursuant to rules
3501+18 adopted in accordance with the Illinois Administrative
3502+19 Procedure Act, issue a permit to any taxpayer in good standing
3503+20 with the Department who is eligible for the exemption under
3504+21 this paragraph (26). The permit issued under this paragraph
3505+22 (26) shall authorize the holder, to the extent and in the
3506+23 manner specified in the rules adopted under this Act, to
3507+24 purchase tangible personal property from a retailer exempt
3508+25 from the taxes imposed by this Act. Taxpayers shall maintain
3509+26 all necessary books and records to substantiate the use and
3510+
3511+
3512+
3513+
3514+
3515+ SB3476 Enrolled - 98 - LRB103 34190 HLH 64013 b
3516+
3517+
3518+SB3476 Enrolled- 99 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 99 - LRB103 34190 HLH 64013 b
3519+ SB3476 Enrolled - 99 - LRB103 34190 HLH 64013 b
3520+1 consumption of all such tangible personal property outside of
3521+2 the State of Illinois.
3522+3 (27) Beginning January 1, 2008, tangible personal property
3523+4 used in the construction or maintenance of a community water
3524+5 supply, as defined under Section 3.145 of the Environmental
3525+6 Protection Act, that is operated by a not-for-profit
3526+7 corporation that holds a valid water supply permit issued
3527+8 under Title IV of the Environmental Protection Act. This
3528+9 paragraph is exempt from the provisions of Section 3-55.
3529+10 (28) Tangible personal property sold to a
3530+11 public-facilities corporation, as described in Section
3531+12 11-65-10 of the Illinois Municipal Code, for purposes of
3532+13 constructing or furnishing a municipal convention hall, but
3533+14 only if the legal title to the municipal convention hall is
3534+15 transferred to the municipality without any further
3535+16 consideration by or on behalf of the municipality at the time
3536+17 of the completion of the municipal convention hall or upon the
3537+18 retirement or redemption of any bonds or other debt
3538+19 instruments issued by the public-facilities corporation in
3539+20 connection with the development of the municipal convention
3540+21 hall. This exemption includes existing public-facilities
3541+22 corporations as provided in Section 11-65-25 of the Illinois
3542+23 Municipal Code. This paragraph is exempt from the provisions
3543+24 of Section 3-55.
3544+25 (29) Beginning January 1, 2010 and continuing through
3545+26 December 31, 2029, materials, parts, equipment, components,
3546+
3547+
3548+
3549+
3550+
3551+ SB3476 Enrolled - 99 - LRB103 34190 HLH 64013 b
3552+
3553+
3554+SB3476 Enrolled- 100 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 100 - LRB103 34190 HLH 64013 b
3555+ SB3476 Enrolled - 100 - LRB103 34190 HLH 64013 b
3556+1 and furnishings incorporated into or upon an aircraft as part
3557+2 of the modification, refurbishment, completion, replacement,
3558+3 repair, or maintenance of the aircraft. This exemption
3559+4 includes consumable supplies used in the modification,
3560+5 refurbishment, completion, replacement, repair, and
3561+6 maintenance of aircraft. However, until January 1, 2024, this
3562+7 exemption excludes any materials, parts, equipment,
3563+8 components, and consumable supplies used in the modification,
3564+9 replacement, repair, and maintenance of aircraft engines or
3565+10 power plants, whether such engines or power plants are
3566+11 installed or uninstalled upon any such aircraft. "Consumable
3567+12 supplies" include, but are not limited to, adhesive, tape,
3568+13 sandpaper, general purpose lubricants, cleaning solution,
3569+14 latex gloves, and protective films.
3570+15 Beginning January 1, 2010 and continuing through December
3571+16 31, 2023, this exemption applies only to the transfer of
3572+17 qualifying tangible personal property incident to the
3573+18 modification, refurbishment, completion, replacement, repair,
3574+19 or maintenance of an aircraft by persons who (i) hold an Air
3575+20 Agency Certificate and are empowered to operate an approved
3576+21 repair station by the Federal Aviation Administration, (ii)
3577+22 have a Class IV Rating, and (iii) conduct operations in
3578+23 accordance with Part 145 of the Federal Aviation Regulations.
3579+24 The exemption does not include aircraft operated by a
3580+25 commercial air carrier providing scheduled passenger air
3581+26 service pursuant to authority issued under Part 121 or Part
3582+
3583+
3584+
3585+
3586+
3587+ SB3476 Enrolled - 100 - LRB103 34190 HLH 64013 b
3588+
3589+
3590+SB3476 Enrolled- 101 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 101 - LRB103 34190 HLH 64013 b
3591+ SB3476 Enrolled - 101 - LRB103 34190 HLH 64013 b
3592+1 129 of the Federal Aviation Regulations. From January 1, 2024
3593+2 through December 31, 2029, this exemption applies only to the
3594+3 use of qualifying tangible personal property by: (A) persons
3595+4 who modify, refurbish, complete, repair, replace, or maintain
3596+5 aircraft and who (i) hold an Air Agency Certificate and are
3597+6 empowered to operate an approved repair station by the Federal
3598+7 Aviation Administration, (ii) have a Class IV Rating, and
3599+8 (iii) conduct operations in accordance with Part 145 of the
3600+9 Federal Aviation Regulations; and (B) persons who engage in
3601+10 the modification, replacement, repair, and maintenance of
3602+11 aircraft engines or power plants without regard to whether or
3603+12 not those persons meet the qualifications of item (A).
3604+13 The changes made to this paragraph (29) by Public Act
3605+14 98-534 are declarative of existing law. It is the intent of the
3606+15 General Assembly that the exemption under this paragraph (29)
3607+16 applies continuously from January 1, 2010 through December 31,
3608+17 2024; however, no claim for credit or refund is allowed for
3609+18 taxes paid as a result of the disallowance of this exemption on
3610+19 or after January 1, 2015 and prior to February 5, 2020 (the
3611+20 effective date of Public Act 101-629).
3612+21 (30) Beginning January 1, 2017 and through December 31,
3613+22 2026, menstrual pads, tampons, and menstrual cups.
3614+23 (31) Tangible personal property transferred to a purchaser
3615+24 who is exempt from tax by operation of federal law. This
3616+25 paragraph is exempt from the provisions of Section 3-55.
3617+26 (32) Qualified tangible personal property used in the
3618+
3619+
3620+
3621+
3622+
3623+ SB3476 Enrolled - 101 - LRB103 34190 HLH 64013 b
3624+
3625+
3626+SB3476 Enrolled- 102 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 102 - LRB103 34190 HLH 64013 b
3627+ SB3476 Enrolled - 102 - LRB103 34190 HLH 64013 b
3628+1 construction or operation of a data center that has been
3629+2 granted a certificate of exemption by the Department of
3630+3 Commerce and Economic Opportunity, whether that tangible
3631+4 personal property is purchased by the owner, operator, or
3632+5 tenant of the data center or by a contractor or subcontractor
3633+6 of the owner, operator, or tenant. Data centers that would
3634+7 have qualified for a certificate of exemption prior to January
3635+8 1, 2020 had Public Act 101-31 been in effect, may apply for and
3636+9 obtain an exemption for subsequent purchases of computer
3637+10 equipment or enabling software purchased or leased to upgrade,
3638+11 supplement, or replace computer equipment or enabling software
3639+12 purchased or leased in the original investment that would have
3640+13 qualified.
3641+14 The Department of Commerce and Economic Opportunity shall
3642+15 grant a certificate of exemption under this item (32) to
3643+16 qualified data centers as defined by Section 605-1025 of the
3644+17 Department of Commerce and Economic Opportunity Law of the
3645+18 Civil Administrative Code of Illinois.
3646+19 For the purposes of this item (32):
3647+20 "Data center" means a building or a series of
3648+21 buildings rehabilitated or constructed to house working
3649+22 servers in one physical location or multiple sites within
3650+23 the State of Illinois.
3651+24 "Qualified tangible personal property" means:
3652+25 electrical systems and equipment; climate control and
3653+26 chilling equipment and systems; mechanical systems and
3654+
3655+
3656+
3657+
3658+
3659+ SB3476 Enrolled - 102 - LRB103 34190 HLH 64013 b
3660+
3661+
3662+SB3476 Enrolled- 103 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 103 - LRB103 34190 HLH 64013 b
3663+ SB3476 Enrolled - 103 - LRB103 34190 HLH 64013 b
3664+1 equipment; monitoring and secure systems; emergency
3665+2 generators; hardware; computers; servers; data storage
3666+3 devices; network connectivity equipment; racks; cabinets;
3667+4 telecommunications cabling infrastructure; raised floor
3668+5 systems; peripheral components or systems; software;
3669+6 mechanical, electrical, or plumbing systems; battery
3670+7 systems; cooling systems and towers; temperature control
3671+8 systems; other cabling; and other data center
3672+9 infrastructure equipment and systems necessary to operate
3673+10 qualified tangible personal property, including fixtures;
3674+11 and component parts of any of the foregoing, including
3675+12 installation, maintenance, repair, refurbishment, and
3676+13 replacement of qualified tangible personal property to
3677+14 generate, transform, transmit, distribute, or manage
3678+15 electricity necessary to operate qualified tangible
3679+16 personal property; and all other tangible personal
3680+17 property that is essential to the operations of a computer
3681+18 data center. The term "qualified tangible personal
3682+19 property" also includes building materials physically
3683+20 incorporated into in to the qualifying data center. To
3684+21 document the exemption allowed under this Section, the
3685+22 retailer must obtain from the purchaser a copy of the
3686+23 certificate of eligibility issued by the Department of
3687+24 Commerce and Economic Opportunity.
3688+25 This item (32) is exempt from the provisions of Section
3689+26 3-55.
3690+
3691+
3692+
3693+
3694+
3695+ SB3476 Enrolled - 103 - LRB103 34190 HLH 64013 b
3696+
3697+
3698+SB3476 Enrolled- 104 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 104 - LRB103 34190 HLH 64013 b
3699+ SB3476 Enrolled - 104 - LRB103 34190 HLH 64013 b
3700+1 (33) Beginning July 1, 2022, breast pumps, breast pump
3701+2 collection and storage supplies, and breast pump kits. This
3702+3 item (33) is exempt from the provisions of Section 3-55. As
3703+4 used in this item (33):
3704+5 "Breast pump" means an electrically controlled or
3705+6 manually controlled pump device designed or marketed to be
3706+7 used to express milk from a human breast during lactation,
3707+8 including the pump device and any battery, AC adapter, or
3708+9 other power supply unit that is used to power the pump
3709+10 device and is packaged and sold with the pump device at the
3710+11 time of sale.
3711+12 "Breast pump collection and storage supplies" means
3712+13 items of tangible personal property designed or marketed
3713+14 to be used in conjunction with a breast pump to collect
3714+15 milk expressed from a human breast and to store collected
3715+16 milk until it is ready for consumption.
3716+17 "Breast pump collection and storage supplies"
3717+18 includes, but is not limited to: breast shields and breast
3718+19 shield connectors; breast pump tubes and tubing adapters;
3719+20 breast pump valves and membranes; backflow protectors and
3720+21 backflow protector adaptors; bottles and bottle caps
3721+22 specific to the operation of the breast pump; and breast
3722+23 milk storage bags.
3723+24 "Breast pump collection and storage supplies" does not
3724+25 include: (1) bottles and bottle caps not specific to the
3725+26 operation of the breast pump; (2) breast pump travel bags
3726+
3727+
3728+
3729+
3730+
3731+ SB3476 Enrolled - 104 - LRB103 34190 HLH 64013 b
3732+
3733+
3734+SB3476 Enrolled- 105 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 105 - LRB103 34190 HLH 64013 b
3735+ SB3476 Enrolled - 105 - LRB103 34190 HLH 64013 b
3736+1 and other similar carrying accessories, including ice
3737+2 packs, labels, and other similar products; (3) breast pump
3738+3 cleaning supplies; (4) nursing bras, bra pads, breast
3739+4 shells, and other similar products; and (5) creams,
3740+5 ointments, and other similar products that relieve
3741+6 breastfeeding-related symptoms or conditions of the
3742+7 breasts or nipples, unless sold as part of a breast pump
3743+8 kit that is pre-packaged by the breast pump manufacturer
3744+9 or distributor.
3745+10 "Breast pump kit" means a kit that: (1) contains no
3746+11 more than a breast pump, breast pump collection and
3747+12 storage supplies, a rechargeable battery for operating the
3748+13 breast pump, a breastmilk cooler, bottle stands, ice
3749+14 packs, and a breast pump carrying case; and (2) is
3750+15 pre-packaged as a breast pump kit by the breast pump
3751+16 manufacturer or distributor.
3752+17 (34) Tangible personal property sold by or on behalf of
3753+18 the State Treasurer pursuant to the Revised Uniform Unclaimed
3754+19 Property Act. This item (34) is exempt from the provisions of
3755+20 Section 3-55.
3756+21 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
3757+22 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
3758+23 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
3759+24 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
3760+25 eff. 6-7-23; 103-154, eff. 6-30-23; revised 9-19-23.)
3761+
3762+
3763+
3764+
3765+
3766+ SB3476 Enrolled - 105 - LRB103 34190 HLH 64013 b
3767+
3768+
3769+SB3476 Enrolled- 106 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 106 - LRB103 34190 HLH 64013 b
3770+ SB3476 Enrolled - 106 - LRB103 34190 HLH 64013 b
3771+1 (Text of Section after amendment by P.A. 103-384)
3772+2 Sec. 3-5. Exemptions. The following tangible personal
3773+3 property is exempt from the tax imposed by this Act:
3774+4 (1) Personal property sold by a corporation, society,
3775+5 association, foundation, institution, or organization, other
3776+6 than a limited liability company, that is organized and
3777+7 operated as a not-for-profit service enterprise for the
3778+8 benefit of persons 65 years of age or older if the personal
3779+9 property was not purchased by the enterprise for the purpose
3780+10 of resale by the enterprise.
3781+11 (2) Personal property purchased by a not-for-profit
3782+12 Illinois county fair association for use in conducting,
3783+13 operating, or promoting the county fair.
3784+14 (3) Personal property purchased by any not-for-profit arts
3785+15 or cultural organization that establishes, by proof required
3786+16 by the Department by rule, that it has received an exemption
3787+17 under Section 501(c)(3) of the Internal Revenue Code and that
3788+18 is organized and operated primarily for the presentation or
3789+19 support of arts or cultural programming, activities, or
3790+20 services. These organizations include, but are not limited to,
3791+21 music and dramatic arts organizations such as symphony
3792+22 orchestras and theatrical groups, arts and cultural service
3793+23 organizations, local arts councils, visual arts organizations,
3794+24 and media arts organizations. On and after July 1, 2001 (the
3795+25 effective date of Public Act 92-35), however, an entity
3796+26 otherwise eligible for this exemption shall not make tax-free
3797+
3798+
3799+
3800+
3801+
3802+ SB3476 Enrolled - 106 - LRB103 34190 HLH 64013 b
3803+
3804+
3805+SB3476 Enrolled- 107 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 107 - LRB103 34190 HLH 64013 b
3806+ SB3476 Enrolled - 107 - LRB103 34190 HLH 64013 b
3807+1 purchases unless it has an active identification number issued
3808+2 by the Department.
3809+3 (4) Legal tender, currency, medallions, or gold or silver
3810+4 coinage issued by the State of Illinois, the government of the
3811+5 United States of America, or the government of any foreign
3812+6 country, and bullion.
3813+7 (5) Until July 1, 2003 and beginning again on September 1,
3814+8 2004 through August 30, 2014, graphic arts machinery and
3815+9 equipment, including repair and replacement parts, both new
3816+10 and used, and including that manufactured on special order or
3817+11 purchased for lease, certified by the purchaser to be used
3818+12 primarily for graphic arts production. Equipment includes
3819+13 chemicals or chemicals acting as catalysts but only if the
3820+14 chemicals or chemicals acting as catalysts effect a direct and
3821+15 immediate change upon a graphic arts product. Beginning on
3822+16 July 1, 2017, graphic arts machinery and equipment is included
3823+17 in the manufacturing and assembling machinery and equipment
3824+18 exemption under Section 2 of this Act.
3825+19 (6) Personal property sold by a teacher-sponsored student
3826+20 organization affiliated with an elementary or secondary school
3827+21 located in Illinois.
3828+22 (7) Farm machinery and equipment, both new and used,
3829+23 including that manufactured on special order, certified by the
3830+24 purchaser to be used primarily for production agriculture or
3831+25 State or federal agricultural programs, including individual
3832+26 replacement parts for the machinery and equipment, including
3833+
3834+
3835+
3836+
3837+
3838+ SB3476 Enrolled - 107 - LRB103 34190 HLH 64013 b
3839+
3840+
3841+SB3476 Enrolled- 108 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 108 - LRB103 34190 HLH 64013 b
3842+ SB3476 Enrolled - 108 - LRB103 34190 HLH 64013 b
3843+1 machinery and equipment purchased for lease, and including
3844+2 implements of husbandry defined in Section 1-130 of the
3845+3 Illinois Vehicle Code, farm machinery and agricultural
3846+4 chemical and fertilizer spreaders, and nurse wagons required
3847+5 to be registered under Section 3-809 of the Illinois Vehicle
3848+6 Code, but excluding other motor vehicles required to be
3849+7 registered under the Illinois Vehicle Code. Horticultural
3850+8 polyhouses or hoop houses used for propagating, growing, or
3851+9 overwintering plants shall be considered farm machinery and
3852+10 equipment under this item (7). Agricultural chemical tender
3853+11 tanks and dry boxes shall include units sold separately from a
3854+12 motor vehicle required to be licensed and units sold mounted
3855+13 on a motor vehicle required to be licensed if the selling price
3856+14 of the tender is separately stated.
3857+15 Farm machinery and equipment shall include precision
3858+16 farming equipment that is installed or purchased to be
3859+17 installed on farm machinery and equipment, including, but not
3860+18 limited to, tractors, harvesters, sprayers, planters, seeders,
3861+19 or spreaders. Precision farming equipment includes, but is not
3862+20 limited to, soil testing sensors, computers, monitors,
3863+21 software, global positioning and mapping systems, and other
3864+22 such equipment.
3865+23 Farm machinery and equipment also includes computers,
3866+24 sensors, software, and related equipment used primarily in the
3867+25 computer-assisted operation of production agriculture
3868+26 facilities, equipment, and activities such as, but not limited
3869+
3870+
3871+
3872+
3873+
3874+ SB3476 Enrolled - 108 - LRB103 34190 HLH 64013 b
3875+
3876+
3877+SB3476 Enrolled- 109 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 109 - LRB103 34190 HLH 64013 b
3878+ SB3476 Enrolled - 109 - LRB103 34190 HLH 64013 b
3879+1 to, the collection, monitoring, and correlation of animal and
3880+2 crop data for the purpose of formulating animal diets and
3881+3 agricultural chemicals.
3882+4 Beginning on January 1, 2024, farm machinery and equipment
3883+5 also includes electrical power generation equipment used
3884+6 primarily for production agriculture.
3885+7 This item (7) is exempt from the provisions of Section
3886+8 3-55.
3887+9 (8) Until June 30, 2013, fuel and petroleum products sold
3888+10 to or used by an air common carrier, certified by the carrier
3889+11 to be used for consumption, shipment, or storage in the
3890+12 conduct of its business as an air common carrier, for a flight
3891+13 destined for or returning from a location or locations outside
3892+14 the United States without regard to previous or subsequent
3893+15 domestic stopovers.
3894+16 Beginning July 1, 2013, fuel and petroleum products sold
3895+17 to or used by an air carrier, certified by the carrier to be
3896+18 used for consumption, shipment, or storage in the conduct of
3897+19 its business as an air common carrier, for a flight that (i) is
3898+20 engaged in foreign trade or is engaged in trade between the
3899+21 United States and any of its possessions and (ii) transports
3900+22 at least one individual or package for hire from the city of
3901+23 origination to the city of final destination on the same
3902+24 aircraft, without regard to a change in the flight number of
3903+25 that aircraft.
3904+26 (9) Proceeds of mandatory service charges separately
3905+
3906+
3907+
3908+
3909+
3910+ SB3476 Enrolled - 109 - LRB103 34190 HLH 64013 b
3911+
3912+
3913+SB3476 Enrolled- 110 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 110 - LRB103 34190 HLH 64013 b
3914+ SB3476 Enrolled - 110 - LRB103 34190 HLH 64013 b
3915+1 stated on customers' bills for the purchase and consumption of
3916+2 food and beverages, to the extent that the proceeds of the
3917+3 service charge are in fact turned over as tips or as a
3918+4 substitute for tips to the employees who participate directly
3919+5 in preparing, serving, hosting or cleaning up the food or
3920+6 beverage function with respect to which the service charge is
3921+7 imposed.
3922+8 (10) Until July 1, 2003, oil field exploration, drilling,
3923+9 and production equipment, including (i) rigs and parts of
3924+10 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3925+11 pipe and tubular goods, including casing and drill strings,
3926+12 (iii) pumps and pump-jack units, (iv) storage tanks and flow
3927+13 lines, (v) any individual replacement part for oil field
3928+14 exploration, drilling, and production equipment, and (vi)
3929+15 machinery and equipment purchased for lease; but excluding
3930+16 motor vehicles required to be registered under the Illinois
3931+17 Vehicle Code.
3932+18 (11) Photoprocessing machinery and equipment, including
3933+19 repair and replacement parts, both new and used, including
3934+20 that manufactured on special order, certified by the purchaser
3935+21 to be used primarily for photoprocessing, and including
3936+22 photoprocessing machinery and equipment purchased for lease.
3937+23 (12) Until July 1, 2028, coal and aggregate exploration,
3938+24 mining, off-highway hauling, processing, maintenance, and
3939+25 reclamation equipment, including replacement parts and
3940+26 equipment, and including equipment purchased for lease, but
3941+
3942+
3943+
3944+
3945+
3946+ SB3476 Enrolled - 110 - LRB103 34190 HLH 64013 b
3947+
3948+
3949+SB3476 Enrolled- 111 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 111 - LRB103 34190 HLH 64013 b
3950+ SB3476 Enrolled - 111 - LRB103 34190 HLH 64013 b
3951+1 excluding motor vehicles required to be registered under the
3952+2 Illinois Vehicle Code. The changes made to this Section by
3953+3 Public Act 97-767 apply on and after July 1, 2003, but no claim
3954+4 for credit or refund is allowed on or after August 16, 2013
3955+5 (the effective date of Public Act 98-456) for such taxes paid
3956+6 during the period beginning July 1, 2003 and ending on August
3957+7 16, 2013 (the effective date of Public Act 98-456).
3958+8 (13) Beginning January 1, 1992 and through June 30, 2016,
3959+9 food for human consumption that is to be consumed off the
3960+10 premises where it is sold (other than alcoholic beverages,
3961+11 soft drinks and food that has been prepared for immediate
3962+12 consumption) and prescription and non-prescription medicines,
3963+13 drugs, medical appliances, and insulin, urine testing
3964+14 materials, syringes, and needles used by diabetics, for human
3965+15 use, when purchased for use by a person receiving medical
3966+16 assistance under Article V of the Illinois Public Aid Code who
3967+17 resides in a licensed long-term care facility, as defined in
3968+18 the Nursing Home Care Act, or in a licensed facility as defined
3969+19 in the ID/DD Community Care Act, the MC/DD Act, or the
3970+20 Specialized Mental Health Rehabilitation Act of 2013.
3971+21 (14) Semen used for artificial insemination of livestock
3972+22 for direct agricultural production.
3973+23 (15) Horses, or interests in horses, registered with and
3974+24 meeting the requirements of any of the Arabian Horse Club
3975+25 Registry of America, Appaloosa Horse Club, American Quarter
3976+26 Horse Association, United States Trotting Association, or
3977+
3978+
3979+
3980+
3981+
3982+ SB3476 Enrolled - 111 - LRB103 34190 HLH 64013 b
3983+
3984+
3985+SB3476 Enrolled- 112 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 112 - LRB103 34190 HLH 64013 b
3986+ SB3476 Enrolled - 112 - LRB103 34190 HLH 64013 b
3987+1 Jockey Club, as appropriate, used for purposes of breeding or
3988+2 racing for prizes. This item (15) is exempt from the
3989+3 provisions of Section 3-55, and the exemption provided for
3990+4 under this item (15) applies for all periods beginning May 30,
3991+5 1995, but no claim for credit or refund is allowed on or after
3992+6 January 1, 2008 (the effective date of Public Act 95-88) for
3993+7 such taxes paid during the period beginning May 30, 2000 and
3994+8 ending on January 1, 2008 (the effective date of Public Act
3995+9 95-88).
3996+10 (16) Computers and communications equipment utilized for
3997+11 any hospital purpose and equipment used in the diagnosis,
3998+12 analysis, or treatment of hospital patients sold to a lessor
3999+13 who leases the equipment, under a lease of one year or longer
4000+14 executed or in effect at the time of the purchase, to a
4001+15 hospital that has been issued an active tax exemption
4002+16 identification number by the Department under Section 1g of
4003+17 the Retailers' Occupation Tax Act.
4004+18 (17) Personal property sold to a lessor who leases the
4005+19 property, under a lease of one year or longer executed or in
4006+20 effect at the time of the purchase, to a governmental body that
4007+21 has been issued an active tax exemption identification number
4008+22 by the Department under Section 1g of the Retailers'
4009+23 Occupation Tax Act.
4010+24 (18) Beginning with taxable years ending on or after
4011+25 December 31, 1995 and ending with taxable years ending on or
4012+26 before December 31, 2004, personal property that is donated
4013+
4014+
4015+
4016+
4017+
4018+ SB3476 Enrolled - 112 - LRB103 34190 HLH 64013 b
4019+
4020+
4021+SB3476 Enrolled- 113 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 113 - LRB103 34190 HLH 64013 b
4022+ SB3476 Enrolled - 113 - LRB103 34190 HLH 64013 b
4023+1 for disaster relief to be used in a State or federally declared
4024+2 disaster area in Illinois or bordering Illinois by a
4025+3 manufacturer or retailer that is registered in this State to a
4026+4 corporation, society, association, foundation, or institution
4027+5 that has been issued a sales tax exemption identification
4028+6 number by the Department that assists victims of the disaster
4029+7 who reside within the declared disaster area.
4030+8 (19) Beginning with taxable years ending on or after
4031+9 December 31, 1995 and ending with taxable years ending on or
4032+10 before December 31, 2004, personal property that is used in
4033+11 the performance of infrastructure repairs in this State,
4034+12 including, but not limited to, municipal roads and streets,
4035+13 access roads, bridges, sidewalks, waste disposal systems,
4036+14 water and sewer line extensions, water distribution and
4037+15 purification facilities, storm water drainage and retention
4038+16 facilities, and sewage treatment facilities, resulting from a
4039+17 State or federally declared disaster in Illinois or bordering
4040+18 Illinois when such repairs are initiated on facilities located
4041+19 in the declared disaster area within 6 months after the
4042+20 disaster.
4043+21 (20) Beginning July 1, 1999, game or game birds sold at a
4044+22 "game breeding and hunting preserve area" as that term is used
4045+23 in the Wildlife Code. This paragraph is exempt from the
4046+24 provisions of Section 3-55.
4047+25 (21) A motor vehicle, as that term is defined in Section
4048+26 1-146 of the Illinois Vehicle Code, that is donated to a
4049+
4050+
4051+
4052+
4053+
4054+ SB3476 Enrolled - 113 - LRB103 34190 HLH 64013 b
4055+
4056+
4057+SB3476 Enrolled- 114 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 114 - LRB103 34190 HLH 64013 b
4058+ SB3476 Enrolled - 114 - LRB103 34190 HLH 64013 b
4059+1 corporation, limited liability company, society, association,
4060+2 foundation, or institution that is determined by the
4061+3 Department to be organized and operated exclusively for
4062+4 educational purposes. For purposes of this exemption, "a
4063+5 corporation, limited liability company, society, association,
4064+6 foundation, or institution organized and operated exclusively
4065+7 for educational purposes" means all tax-supported public
4066+8 schools, private schools that offer systematic instruction in
4067+9 useful branches of learning by methods common to public
4068+10 schools and that compare favorably in their scope and
4069+11 intensity with the course of study presented in tax-supported
4070+12 schools, and vocational or technical schools or institutes
4071+13 organized and operated exclusively to provide a course of
4072+14 study of not less than 6 weeks duration and designed to prepare
4073+15 individuals to follow a trade or to pursue a manual,
4074+16 technical, mechanical, industrial, business, or commercial
4075+17 occupation.
4076+18 (22) Beginning January 1, 2000, personal property,
4077+19 including food, purchased through fundraising events for the
4078+20 benefit of a public or private elementary or secondary school,
4079+21 a group of those schools, or one or more school districts if
4080+22 the events are sponsored by an entity recognized by the school
4081+23 district that consists primarily of volunteers and includes
4082+24 parents and teachers of the school children. This paragraph
4083+25 does not apply to fundraising events (i) for the benefit of
4084+26 private home instruction or (ii) for which the fundraising
4085+
4086+
4087+
4088+
4089+
4090+ SB3476 Enrolled - 114 - LRB103 34190 HLH 64013 b
4091+
4092+
4093+SB3476 Enrolled- 115 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 115 - LRB103 34190 HLH 64013 b
4094+ SB3476 Enrolled - 115 - LRB103 34190 HLH 64013 b
4095+1 entity purchases the personal property sold at the events from
4096+2 another individual or entity that sold the property for the
4097+3 purpose of resale by the fundraising entity and that profits
4098+4 from the sale to the fundraising entity. This paragraph is
4099+5 exempt from the provisions of Section 3-55.
4100+6 (23) Beginning January 1, 2000 and through December 31,
4101+7 2001, new or used automatic vending machines that prepare and
4102+8 serve hot food and beverages, including coffee, soup, and
4103+9 other items, and replacement parts for these machines.
4104+10 Beginning January 1, 2002 and through June 30, 2003, machines
4105+11 and parts for machines used in commercial, coin-operated
4106+12 amusement and vending business if a use or occupation tax is
4107+13 paid on the gross receipts derived from the use of the
4108+14 commercial, coin-operated amusement and vending machines. This
4109+15 paragraph is exempt from the provisions of Section 3-55.
4110+16 (24) Beginning on August 2, 2001 (the effective date of
4111+17 Public Act 92-227), computers and communications equipment
4112+18 utilized for any hospital purpose and equipment used in the
4113+19 diagnosis, analysis, or treatment of hospital patients sold to
4114+20 a lessor who leases the equipment, under a lease of one year or
4115+21 longer executed or in effect at the time of the purchase, to a
4116+22 hospital that has been issued an active tax exemption
4117+23 identification number by the Department under Section 1g of
4118+24 the Retailers' Occupation Tax Act. This paragraph is exempt
4119+25 from the provisions of Section 3-55.
4120+26 (25) Beginning on August 2, 2001 (the effective date of
4121+
4122+
4123+
4124+
4125+
4126+ SB3476 Enrolled - 115 - LRB103 34190 HLH 64013 b
4127+
4128+
4129+SB3476 Enrolled- 116 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 116 - LRB103 34190 HLH 64013 b
4130+ SB3476 Enrolled - 116 - LRB103 34190 HLH 64013 b
4131+1 Public Act 92-227), personal property sold to a lessor who
4132+2 leases the property, under a lease of one year or longer
4133+3 executed or in effect at the time of the purchase, to a
4134+4 governmental body that has been issued an active tax exemption
4135+5 identification number by the Department under Section 1g of
4136+6 the Retailers' Occupation Tax Act. This paragraph is exempt
4137+7 from the provisions of Section 3-55.
4138+8 (26) Beginning on January 1, 2002 and through June 30,
4139+9 2016, tangible personal property purchased from an Illinois
4140+10 retailer by a taxpayer engaged in centralized purchasing
4141+11 activities in Illinois who will, upon receipt of the property
4142+12 in Illinois, temporarily store the property in Illinois (i)
4143+13 for the purpose of subsequently transporting it outside this
4144+14 State for use or consumption thereafter solely outside this
4145+15 State or (ii) for the purpose of being processed, fabricated,
4146+16 or manufactured into, attached to, or incorporated into other
4147+17 tangible personal property to be transported outside this
4148+18 State and thereafter used or consumed solely outside this
4149+19 State. The Director of Revenue shall, pursuant to rules
4150+20 adopted in accordance with the Illinois Administrative
4151+21 Procedure Act, issue a permit to any taxpayer in good standing
4152+22 with the Department who is eligible for the exemption under
4153+23 this paragraph (26). The permit issued under this paragraph
4154+24 (26) shall authorize the holder, to the extent and in the
4155+25 manner specified in the rules adopted under this Act, to
4156+26 purchase tangible personal property from a retailer exempt
4157+
4158+
4159+
4160+
4161+
4162+ SB3476 Enrolled - 116 - LRB103 34190 HLH 64013 b
4163+
4164+
4165+SB3476 Enrolled- 117 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 117 - LRB103 34190 HLH 64013 b
4166+ SB3476 Enrolled - 117 - LRB103 34190 HLH 64013 b
4167+1 from the taxes imposed by this Act. Taxpayers shall maintain
4168+2 all necessary books and records to substantiate the use and
4169+3 consumption of all such tangible personal property outside of
4170+4 the State of Illinois.
4171+5 (27) Beginning January 1, 2008, tangible personal property
4172+6 used in the construction or maintenance of a community water
4173+7 supply, as defined under Section 3.145 of the Environmental
4174+8 Protection Act, that is operated by a not-for-profit
4175+9 corporation that holds a valid water supply permit issued
4176+10 under Title IV of the Environmental Protection Act. This
4177+11 paragraph is exempt from the provisions of Section 3-55.
4178+12 (28) Tangible personal property sold to a
4179+13 public-facilities corporation, as described in Section
4180+14 11-65-10 of the Illinois Municipal Code, for purposes of
4181+15 constructing or furnishing a municipal convention hall, but
4182+16 only if the legal title to the municipal convention hall is
4183+17 transferred to the municipality without any further
4184+18 consideration by or on behalf of the municipality at the time
4185+19 of the completion of the municipal convention hall or upon the
4186+20 retirement or redemption of any bonds or other debt
4187+21 instruments issued by the public-facilities corporation in
4188+22 connection with the development of the municipal convention
4189+23 hall. This exemption includes existing public-facilities
4190+24 corporations as provided in Section 11-65-25 of the Illinois
4191+25 Municipal Code. This paragraph is exempt from the provisions
4192+26 of Section 3-55.
4193+
4194+
4195+
4196+
4197+
4198+ SB3476 Enrolled - 117 - LRB103 34190 HLH 64013 b
4199+
4200+
4201+SB3476 Enrolled- 118 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 118 - LRB103 34190 HLH 64013 b
4202+ SB3476 Enrolled - 118 - LRB103 34190 HLH 64013 b
4203+1 (29) Beginning January 1, 2010 and continuing through
4204+2 December 31, 2029, materials, parts, equipment, components,
4205+3 and furnishings incorporated into or upon an aircraft as part
4206+4 of the modification, refurbishment, completion, replacement,
4207+5 repair, or maintenance of the aircraft. This exemption
4208+6 includes consumable supplies used in the modification,
4209+7 refurbishment, completion, replacement, repair, and
4210+8 maintenance of aircraft. However, until January 1, 2024, this
4211+9 exemption excludes any materials, parts, equipment,
4212+10 components, and consumable supplies used in the modification,
4213+11 replacement, repair, and maintenance of aircraft engines or
4214+12 power plants, whether such engines or power plants are
4215+13 installed or uninstalled upon any such aircraft. "Consumable
4216+14 supplies" include, but are not limited to, adhesive, tape,
4217+15 sandpaper, general purpose lubricants, cleaning solution,
4218+16 latex gloves, and protective films.
4219+17 Beginning January 1, 2010 and continuing through December
4220+18 31, 2023, this exemption applies only to the transfer of
4221+19 qualifying tangible personal property incident to the
4222+20 modification, refurbishment, completion, replacement, repair,
4223+21 or maintenance of an aircraft by persons who (i) hold an Air
4224+22 Agency Certificate and are empowered to operate an approved
4225+23 repair station by the Federal Aviation Administration, (ii)
4226+24 have a Class IV Rating, and (iii) conduct operations in
4227+25 accordance with Part 145 of the Federal Aviation Regulations.
4228+26 The exemption does not include aircraft operated by a
4229+
4230+
4231+
4232+
4233+
4234+ SB3476 Enrolled - 118 - LRB103 34190 HLH 64013 b
4235+
4236+
4237+SB3476 Enrolled- 119 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 119 - LRB103 34190 HLH 64013 b
4238+ SB3476 Enrolled - 119 - LRB103 34190 HLH 64013 b
4239+1 commercial air carrier providing scheduled passenger air
4240+2 service pursuant to authority issued under Part 121 or Part
4241+3 129 of the Federal Aviation Regulations. From January 1, 2024
4242+4 through December 31, 2029, this exemption applies only to the
4243+5 use of qualifying tangible personal property by: (A) persons
4244+6 who modify, refurbish, complete, repair, replace, or maintain
4245+7 aircraft and who (i) hold an Air Agency Certificate and are
4246+8 empowered to operate an approved repair station by the Federal
4247+9 Aviation Administration, (ii) have a Class IV Rating, and
4248+10 (iii) conduct operations in accordance with Part 145 of the
4249+11 Federal Aviation Regulations; and (B) persons who engage in
4250+12 the modification, replacement, repair, and maintenance of
4251+13 aircraft engines or power plants without regard to whether or
4252+14 not those persons meet the qualifications of item (A).
4253+15 The changes made to this paragraph (29) by Public Act
4254+16 98-534 are declarative of existing law. It is the intent of the
4255+17 General Assembly that the exemption under this paragraph (29)
4256+18 applies continuously from January 1, 2010 through December 31,
4257+19 2024; however, no claim for credit or refund is allowed for
4258+20 taxes paid as a result of the disallowance of this exemption on
4259+21 or after January 1, 2015 and prior to February 5, 2020 (the
4260+22 effective date of Public Act 101-629).
4261+23 (30) Beginning January 1, 2017 and through December 31,
4262+24 2026, menstrual pads, tampons, and menstrual cups.
4263+25 (31) Tangible personal property transferred to a purchaser
4264+26 who is exempt from tax by operation of federal law. This
4265+
4266+
4267+
4268+
4269+
4270+ SB3476 Enrolled - 119 - LRB103 34190 HLH 64013 b
4271+
4272+
4273+SB3476 Enrolled- 120 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 120 - LRB103 34190 HLH 64013 b
4274+ SB3476 Enrolled - 120 - LRB103 34190 HLH 64013 b
4275+1 paragraph is exempt from the provisions of Section 3-55.
4276+2 (32) Qualified tangible personal property used in the
4277+3 construction or operation of a data center that has been
4278+4 granted a certificate of exemption by the Department of
4279+5 Commerce and Economic Opportunity, whether that tangible
4280+6 personal property is purchased by the owner, operator, or
4281+7 tenant of the data center or by a contractor or subcontractor
4282+8 of the owner, operator, or tenant. Data centers that would
4283+9 have qualified for a certificate of exemption prior to January
4284+10 1, 2020 had Public Act 101-31 been in effect, may apply for and
4285+11 obtain an exemption for subsequent purchases of computer
4286+12 equipment or enabling software purchased or leased to upgrade,
4287+13 supplement, or replace computer equipment or enabling software
4288+14 purchased or leased in the original investment that would have
4289+15 qualified.
4290+16 The Department of Commerce and Economic Opportunity shall
4291+17 grant a certificate of exemption under this item (32) to
4292+18 qualified data centers as defined by Section 605-1025 of the
4293+19 Department of Commerce and Economic Opportunity Law of the
4294+20 Civil Administrative Code of Illinois.
4295+21 For the purposes of this item (32):
4296+22 "Data center" means a building or a series of
4297+23 buildings rehabilitated or constructed to house working
4298+24 servers in one physical location or multiple sites within
4299+25 the State of Illinois.
4300+26 "Qualified tangible personal property" means:
4301+
4302+
4303+
4304+
4305+
4306+ SB3476 Enrolled - 120 - LRB103 34190 HLH 64013 b
4307+
4308+
4309+SB3476 Enrolled- 121 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 121 - LRB103 34190 HLH 64013 b
4310+ SB3476 Enrolled - 121 - LRB103 34190 HLH 64013 b
4311+1 electrical systems and equipment; climate control and
4312+2 chilling equipment and systems; mechanical systems and
4313+3 equipment; monitoring and secure systems; emergency
4314+4 generators; hardware; computers; servers; data storage
4315+5 devices; network connectivity equipment; racks; cabinets;
4316+6 telecommunications cabling infrastructure; raised floor
4317+7 systems; peripheral components or systems; software;
4318+8 mechanical, electrical, or plumbing systems; battery
4319+9 systems; cooling systems and towers; temperature control
4320+10 systems; other cabling; and other data center
4321+11 infrastructure equipment and systems necessary to operate
4322+12 qualified tangible personal property, including fixtures;
4323+13 and component parts of any of the foregoing, including
4324+14 installation, maintenance, repair, refurbishment, and
4325+15 replacement of qualified tangible personal property to
4326+16 generate, transform, transmit, distribute, or manage
4327+17 electricity necessary to operate qualified tangible
4328+18 personal property; and all other tangible personal
4329+19 property that is essential to the operations of a computer
4330+20 data center. The term "qualified tangible personal
4331+21 property" also includes building materials physically
4332+22 incorporated into in to the qualifying data center. To
4333+23 document the exemption allowed under this Section, the
4334+24 retailer must obtain from the purchaser a copy of the
4335+25 certificate of eligibility issued by the Department of
4336+26 Commerce and Economic Opportunity.
4337+
4338+
4339+
4340+
4341+
4342+ SB3476 Enrolled - 121 - LRB103 34190 HLH 64013 b
4343+
4344+
4345+SB3476 Enrolled- 122 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 122 - LRB103 34190 HLH 64013 b
4346+ SB3476 Enrolled - 122 - LRB103 34190 HLH 64013 b
4347+1 This item (32) is exempt from the provisions of Section
4348+2 3-55.
4349+3 (33) Beginning July 1, 2022, breast pumps, breast pump
4350+4 collection and storage supplies, and breast pump kits. This
4351+5 item (33) is exempt from the provisions of Section 3-55. As
4352+6 used in this item (33):
4353+7 "Breast pump" means an electrically controlled or
4354+8 manually controlled pump device designed or marketed to be
4355+9 used to express milk from a human breast during lactation,
4356+10 including the pump device and any battery, AC adapter, or
4357+11 other power supply unit that is used to power the pump
4358+12 device and is packaged and sold with the pump device at the
4359+13 time of sale.
4360+14 "Breast pump collection and storage supplies" means
4361+15 items of tangible personal property designed or marketed
4362+16 to be used in conjunction with a breast pump to collect
4363+17 milk expressed from a human breast and to store collected
4364+18 milk until it is ready for consumption.
4365+19 "Breast pump collection and storage supplies"
4366+20 includes, but is not limited to: breast shields and breast
4367+21 shield connectors; breast pump tubes and tubing adapters;
4368+22 breast pump valves and membranes; backflow protectors and
4369+23 backflow protector adaptors; bottles and bottle caps
4370+24 specific to the operation of the breast pump; and breast
4371+25 milk storage bags.
4372+26 "Breast pump collection and storage supplies" does not
4373+
4374+
4375+
4376+
4377+
4378+ SB3476 Enrolled - 122 - LRB103 34190 HLH 64013 b
4379+
4380+
4381+SB3476 Enrolled- 123 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 123 - LRB103 34190 HLH 64013 b
4382+ SB3476 Enrolled - 123 - LRB103 34190 HLH 64013 b
4383+1 include: (1) bottles and bottle caps not specific to the
4384+2 operation of the breast pump; (2) breast pump travel bags
4385+3 and other similar carrying accessories, including ice
4386+4 packs, labels, and other similar products; (3) breast pump
4387+5 cleaning supplies; (4) nursing bras, bra pads, breast
4388+6 shells, and other similar products; and (5) creams,
4389+7 ointments, and other similar products that relieve
4390+8 breastfeeding-related symptoms or conditions of the
4391+9 breasts or nipples, unless sold as part of a breast pump
4392+10 kit that is pre-packaged by the breast pump manufacturer
4393+11 or distributor.
4394+12 "Breast pump kit" means a kit that: (1) contains no
4395+13 more than a breast pump, breast pump collection and
4396+14 storage supplies, a rechargeable battery for operating the
4397+15 breast pump, a breastmilk cooler, bottle stands, ice
4398+16 packs, and a breast pump carrying case; and (2) is
4399+17 pre-packaged as a breast pump kit by the breast pump
4400+18 manufacturer or distributor.
4401+19 (34) Tangible personal property sold by or on behalf of
4402+20 the State Treasurer pursuant to the Revised Uniform Unclaimed
4403+21 Property Act. This item (34) is exempt from the provisions of
4404+22 Section 3-55.
4405+23 (35) Beginning on January 1, 2024, tangible personal
4406+24 property purchased by an active duty member of the armed
4407+25 forces of the United States who presents valid military
4408+26 identification and purchases the property using a form of
4409+
4410+
4411+
4412+
4413+
4414+ SB3476 Enrolled - 123 - LRB103 34190 HLH 64013 b
4415+
4416+
4417+SB3476 Enrolled- 124 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 124 - LRB103 34190 HLH 64013 b
4418+ SB3476 Enrolled - 124 - LRB103 34190 HLH 64013 b
4419+1 payment where the federal government is the payor. The member
4420+2 of the armed forces must complete, at the point of sale, a form
4421+3 prescribed by the Department of Revenue documenting that the
4422+4 transaction is eligible for the exemption under this
4423+5 paragraph. Retailers must keep the form as documentation of
4424+6 the exemption in their records for a period of not less than 6
4425+7 years. "Armed forces of the United States" means the United
4426+8 States Army, Navy, Air Force, Marine Corps, or Coast Guard.
4427+9 This paragraph is exempt from the provisions of Section 3-55.
4428+10 (36) Beginning July 1, 2024, home-delivered meals provided
4429+11 to Medicare or Medicaid recipients when payment is made by an
4430+12 intermediary, such as a Medicare Administrative Contractor, a
4431+13 Managed Care Organization, or a Medicare Advantage
4432+14 Organization, pursuant to a government contract. This
4433+15 paragraph (35) is exempt from the provisions of Section 3-55.
4434+16 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
4435+17 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
4436+18 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
4437+19 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
4438+20 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
4439+21 revised 9-19-23.)
4440+22 Section 20. The Retailers' Occupation Tax Act is amended
4441+23 by changing Section 2-5 as follows:
4442+24 (35 ILCS 120/2-5)
4443+
4444+
4445+
4446+
4447+
4448+ SB3476 Enrolled - 124 - LRB103 34190 HLH 64013 b
4449+
4450+
4451+SB3476 Enrolled- 125 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 125 - LRB103 34190 HLH 64013 b
4452+ SB3476 Enrolled - 125 - LRB103 34190 HLH 64013 b
4453+1 (Text of Section before amendment by P.A. 103-384)
4454+2 Sec. 2-5. Exemptions. Gross receipts from proceeds from
4455+3 the sale of the following tangible personal property are
4456+4 exempt from the tax imposed by this Act:
4457+5 (1) Farm chemicals.
4458+6 (2) Farm machinery and equipment, both new and used,
4459+7 including that manufactured on special order, certified by
4460+8 the purchaser to be used primarily for production
4461+9 agriculture or State or federal agricultural programs,
4462+10 including individual replacement parts for the machinery
4463+11 and equipment, including machinery and equipment purchased
4464+12 for lease, and including implements of husbandry defined
4465+13 in Section 1-130 of the Illinois Vehicle Code, farm
4466+14 machinery and agricultural chemical and fertilizer
4467+15 spreaders, and nurse wagons required to be registered
4468+16 under Section 3-809 of the Illinois Vehicle Code, but
4469+17 excluding other motor vehicles required to be registered
4470+18 under the Illinois Vehicle Code. Horticultural polyhouses
4471+19 or hoop houses used for propagating, growing, or
4472+20 overwintering plants shall be considered farm machinery
4473+21 and equipment under this item (2). Agricultural chemical
4474+22 tender tanks and dry boxes shall include units sold
4475+23 separately from a motor vehicle required to be licensed
4476+24 and units sold mounted on a motor vehicle required to be
4477+25 licensed, if the selling price of the tender is separately
4478+26 stated.
4479+
4480+
4481+
4482+
4483+
4484+ SB3476 Enrolled - 125 - LRB103 34190 HLH 64013 b
4485+
4486+
4487+SB3476 Enrolled- 126 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 126 - LRB103 34190 HLH 64013 b
4488+ SB3476 Enrolled - 126 - LRB103 34190 HLH 64013 b
4489+1 Farm machinery and equipment shall include precision
4490+2 farming equipment that is installed or purchased to be
4491+3 installed on farm machinery and equipment including, but
4492+4 not limited to, tractors, harvesters, sprayers, planters,
4493+5 seeders, or spreaders. Precision farming equipment
4494+6 includes, but is not limited to, soil testing sensors,
4495+7 computers, monitors, software, global positioning and
4496+8 mapping systems, and other such equipment.
4497+9 Farm machinery and equipment also includes computers,
4498+10 sensors, software, and related equipment used primarily in
4499+11 the computer-assisted operation of production agriculture
4500+12 facilities, equipment, and activities such as, but not
4501+13 limited to, the collection, monitoring, and correlation of
4502+14 animal and crop data for the purpose of formulating animal
4503+15 diets and agricultural chemicals.
4504+16 Beginning on January 1, 2024, farm machinery and
4505+17 equipment also includes electrical power generation
4506+18 equipment used primarily for production agriculture.
4507+19 This item (2) is exempt from the provisions of Section
4508+20 2-70.
4509+21 (3) Until July 1, 2003, distillation machinery and
4510+22 equipment, sold as a unit or kit, assembled or installed
4511+23 by the retailer, certified by the user to be used only for
4512+24 the production of ethyl alcohol that will be used for
4513+25 consumption as motor fuel or as a component of motor fuel
4514+26 for the personal use of the user, and not subject to sale
4515+
4516+
4517+
4518+
4519+
4520+ SB3476 Enrolled - 126 - LRB103 34190 HLH 64013 b
4521+
4522+
4523+SB3476 Enrolled- 127 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 127 - LRB103 34190 HLH 64013 b
4524+ SB3476 Enrolled - 127 - LRB103 34190 HLH 64013 b
4525+1 or resale.
4526+2 (4) Until July 1, 2003 and beginning again September
4527+3 1, 2004 through August 30, 2014, graphic arts machinery
4528+4 and equipment, including repair and replacement parts,
4529+5 both new and used, and including that manufactured on
4530+6 special order or purchased for lease, certified by the
4531+7 purchaser to be used primarily for graphic arts
4532+8 production. Equipment includes chemicals or chemicals
4533+9 acting as catalysts but only if the chemicals or chemicals
4534+10 acting as catalysts effect a direct and immediate change
4535+11 upon a graphic arts product. Beginning on July 1, 2017,
4536+12 graphic arts machinery and equipment is included in the
4537+13 manufacturing and assembling machinery and equipment
4538+14 exemption under paragraph (14).
4539+15 (5) A motor vehicle that is used for automobile
4540+16 renting, as defined in the Automobile Renting Occupation
4541+17 and Use Tax Act. This paragraph is exempt from the
4542+18 provisions of Section 2-70.
4543+19 (6) Personal property sold by a teacher-sponsored
4544+20 student organization affiliated with an elementary or
4545+21 secondary school located in Illinois.
4546+22 (7) Until July 1, 2003, proceeds of that portion of
4547+23 the selling price of a passenger car the sale of which is
4548+24 subject to the Replacement Vehicle Tax.
4549+25 (8) Personal property sold to an Illinois county fair
4550+26 association for use in conducting, operating, or promoting
4551+
4552+
4553+
4554+
4555+
4556+ SB3476 Enrolled - 127 - LRB103 34190 HLH 64013 b
4557+
4558+
4559+SB3476 Enrolled- 128 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 128 - LRB103 34190 HLH 64013 b
4560+ SB3476 Enrolled - 128 - LRB103 34190 HLH 64013 b
4561+1 the county fair.
4562+2 (9) Personal property sold to a not-for-profit arts or
4563+3 cultural organization that establishes, by proof required
4564+4 by the Department by rule, that it has received an
4565+5 exemption under Section 501(c)(3) of the Internal Revenue
4566+6 Code and that is organized and operated primarily for the
4567+7 presentation or support of arts or cultural programming,
4568+8 activities, or services. These organizations include, but
4569+9 are not limited to, music and dramatic arts organizations
4570+10 such as symphony orchestras and theatrical groups, arts
4571+11 and cultural service organizations, local arts councils,
4572+12 visual arts organizations, and media arts organizations.
4573+13 On and after July 1, 2001 (the effective date of Public Act
4574+14 92-35), however, an entity otherwise eligible for this
4575+15 exemption shall not make tax-free purchases unless it has
4576+16 an active identification number issued by the Department.
4577+17 (10) Personal property sold by a corporation, society,
4578+18 association, foundation, institution, or organization,
4579+19 other than a limited liability company, that is organized
4580+20 and operated as a not-for-profit service enterprise for
4581+21 the benefit of persons 65 years of age or older if the
4582+22 personal property was not purchased by the enterprise for
4583+23 the purpose of resale by the enterprise.
4584+24 (11) Personal property sold to a governmental body, to
4585+25 a corporation, society, association, foundation, or
4586+26 institution organized and operated exclusively for
4587+
4588+
4589+
4590+
4591+
4592+ SB3476 Enrolled - 128 - LRB103 34190 HLH 64013 b
4593+
4594+
4595+SB3476 Enrolled- 129 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 129 - LRB103 34190 HLH 64013 b
4596+ SB3476 Enrolled - 129 - LRB103 34190 HLH 64013 b
4597+1 charitable, religious, or educational purposes, or to a
4598+2 not-for-profit corporation, society, association,
4599+3 foundation, institution, or organization that has no
4600+4 compensated officers or employees and that is organized
4601+5 and operated primarily for the recreation of persons 55
4602+6 years of age or older. A limited liability company may
4603+7 qualify for the exemption under this paragraph only if the
4604+8 limited liability company is organized and operated
4605+9 exclusively for educational purposes. On and after July 1,
4606+10 1987, however, no entity otherwise eligible for this
4607+11 exemption shall make tax-free purchases unless it has an
4608+12 active identification number issued by the Department.
4609+13 (12) (Blank).
4610+14 (12-5) On and after July 1, 2003 and through June 30,
4611+15 2004, motor vehicles of the second division with a gross
4612+16 vehicle weight in excess of 8,000 pounds that are subject
4613+17 to the commercial distribution fee imposed under Section
4614+18 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
4615+19 2004 and through June 30, 2005, the use in this State of
4616+20 motor vehicles of the second division: (i) with a gross
4617+21 vehicle weight rating in excess of 8,000 pounds; (ii) that
4618+22 are subject to the commercial distribution fee imposed
4619+23 under Section 3-815.1 of the Illinois Vehicle Code; and
4620+24 (iii) that are primarily used for commercial purposes.
4621+25 Through June 30, 2005, this exemption applies to repair
4622+26 and replacement parts added after the initial purchase of
4623+
4624+
4625+
4626+
4627+
4628+ SB3476 Enrolled - 129 - LRB103 34190 HLH 64013 b
4629+
4630+
4631+SB3476 Enrolled- 130 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 130 - LRB103 34190 HLH 64013 b
4632+ SB3476 Enrolled - 130 - LRB103 34190 HLH 64013 b
4633+1 such a motor vehicle if that motor vehicle is used in a
4634+2 manner that would qualify for the rolling stock exemption
4635+3 otherwise provided for in this Act. For purposes of this
4636+4 paragraph, "used for commercial purposes" means the
4637+5 transportation of persons or property in furtherance of
4638+6 any commercial or industrial enterprise whether for-hire
4639+7 or not.
4640+8 (13) Proceeds from sales to owners, lessors, or
4641+9 shippers of tangible personal property that is utilized by
4642+10 interstate carriers for hire for use as rolling stock
4643+11 moving in interstate commerce and equipment operated by a
4644+12 telecommunications provider, licensed as a common carrier
4645+13 by the Federal Communications Commission, which is
4646+14 permanently installed in or affixed to aircraft moving in
4647+15 interstate commerce.
4648+16 (14) Machinery and equipment that will be used by the
4649+17 purchaser, or a lessee of the purchaser, primarily in the
4650+18 process of manufacturing or assembling tangible personal
4651+19 property for wholesale or retail sale or lease, whether
4652+20 the sale or lease is made directly by the manufacturer or
4653+21 by some other person, whether the materials used in the
4654+22 process are owned by the manufacturer or some other
4655+23 person, or whether the sale or lease is made apart from or
4656+24 as an incident to the seller's engaging in the service
4657+25 occupation of producing machines, tools, dies, jigs,
4658+26 patterns, gauges, or other similar items of no commercial
4659+
4660+
4661+
4662+
4663+
4664+ SB3476 Enrolled - 130 - LRB103 34190 HLH 64013 b
4665+
4666+
4667+SB3476 Enrolled- 131 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 131 - LRB103 34190 HLH 64013 b
4668+ SB3476 Enrolled - 131 - LRB103 34190 HLH 64013 b
4669+1 value on special order for a particular purchaser. The
4670+2 exemption provided by this paragraph (14) does not include
4671+3 machinery and equipment used in (i) the generation of
4672+4 electricity for wholesale or retail sale; (ii) the
4673+5 generation or treatment of natural or artificial gas for
4674+6 wholesale or retail sale that is delivered to customers
4675+7 through pipes, pipelines, or mains; or (iii) the treatment
4676+8 of water for wholesale or retail sale that is delivered to
4677+9 customers through pipes, pipelines, or mains. The
4678+10 provisions of Public Act 98-583 are declaratory of
4679+11 existing law as to the meaning and scope of this
4680+12 exemption. Beginning on July 1, 2017, the exemption
4681+13 provided by this paragraph (14) includes, but is not
4682+14 limited to, graphic arts machinery and equipment, as
4683+15 defined in paragraph (4) of this Section.
4684+16 (15) Proceeds of mandatory service charges separately
4685+17 stated on customers' bills for purchase and consumption of
4686+18 food and beverages, to the extent that the proceeds of the
4687+19 service charge are in fact turned over as tips or as a
4688+20 substitute for tips to the employees who participate
4689+21 directly in preparing, serving, hosting or cleaning up the
4690+22 food or beverage function with respect to which the
4691+23 service charge is imposed.
4692+24 (16) Tangible personal property sold to a purchaser if
4693+25 the purchaser is exempt from use tax by operation of
4694+26 federal law. This paragraph is exempt from the provisions
4695+
4696+
4697+
4698+
4699+
4700+ SB3476 Enrolled - 131 - LRB103 34190 HLH 64013 b
4701+
4702+
4703+SB3476 Enrolled- 132 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 132 - LRB103 34190 HLH 64013 b
4704+ SB3476 Enrolled - 132 - LRB103 34190 HLH 64013 b
4705+1 of Section 2-70.
4706+2 (17) Tangible personal property sold to a common
4707+3 carrier by rail or motor that receives the physical
4708+4 possession of the property in Illinois and that transports
4709+5 the property, or shares with another common carrier in the
4710+6 transportation of the property, out of Illinois on a
4711+7 standard uniform bill of lading showing the seller of the
4712+8 property as the shipper or consignor of the property to a
4713+9 destination outside Illinois, for use outside Illinois.
4714+10 (18) Legal tender, currency, medallions, or gold or
4715+11 silver coinage issued by the State of Illinois, the
4716+12 government of the United States of America, or the
4717+13 government of any foreign country, and bullion.
4718+14 (19) Until July 1, 2003, oil field exploration,
4719+15 drilling, and production equipment, including (i) rigs and
4720+16 parts of rigs, rotary rigs, cable tool rigs, and workover
4721+17 rigs, (ii) pipe and tubular goods, including casing and
4722+18 drill strings, (iii) pumps and pump-jack units, (iv)
4723+19 storage tanks and flow lines, (v) any individual
4724+20 replacement part for oil field exploration, drilling, and
4725+21 production equipment, and (vi) machinery and equipment
4726+22 purchased for lease; but excluding motor vehicles required
4727+23 to be registered under the Illinois Vehicle Code.
4728+24 (20) Photoprocessing machinery and equipment,
4729+25 including repair and replacement parts, both new and used,
4730+26 including that manufactured on special order, certified by
4731+
4732+
4733+
4734+
4735+
4736+ SB3476 Enrolled - 132 - LRB103 34190 HLH 64013 b
4737+
4738+
4739+SB3476 Enrolled- 133 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 133 - LRB103 34190 HLH 64013 b
4740+ SB3476 Enrolled - 133 - LRB103 34190 HLH 64013 b
4741+1 the purchaser to be used primarily for photoprocessing,
4742+2 and including photoprocessing machinery and equipment
4743+3 purchased for lease.
4744+4 (21) Until July 1, 2028, coal and aggregate
4745+5 exploration, mining, off-highway hauling, processing,
4746+6 maintenance, and reclamation equipment, including
4747+7 replacement parts and equipment, and including equipment
4748+8 purchased for lease, but excluding motor vehicles required
4749+9 to be registered under the Illinois Vehicle Code. The
4750+10 changes made to this Section by Public Act 97-767 apply on
4751+11 and after July 1, 2003, but no claim for credit or refund
4752+12 is allowed on or after August 16, 2013 (the effective date
4753+13 of Public Act 98-456) for such taxes paid during the
4754+14 period beginning July 1, 2003 and ending on August 16,
4755+15 2013 (the effective date of Public Act 98-456).
4756+16 (22) Until June 30, 2013, fuel and petroleum products
4757+17 sold to or used by an air carrier, certified by the carrier
4758+18 to be used for consumption, shipment, or storage in the
4759+19 conduct of its business as an air common carrier, for a
4760+20 flight destined for or returning from a location or
4761+21 locations outside the United States without regard to
4762+22 previous or subsequent domestic stopovers.
4763+23 Beginning July 1, 2013, fuel and petroleum products
4764+24 sold to or used by an air carrier, certified by the carrier
4765+25 to be used for consumption, shipment, or storage in the
4766+26 conduct of its business as an air common carrier, for a
4767+
4768+
4769+
4770+
4771+
4772+ SB3476 Enrolled - 133 - LRB103 34190 HLH 64013 b
4773+
4774+
4775+SB3476 Enrolled- 134 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 134 - LRB103 34190 HLH 64013 b
4776+ SB3476 Enrolled - 134 - LRB103 34190 HLH 64013 b
4777+1 flight that (i) is engaged in foreign trade or is engaged
4778+2 in trade between the United States and any of its
4779+3 possessions and (ii) transports at least one individual or
4780+4 package for hire from the city of origination to the city
4781+5 of final destination on the same aircraft, without regard
4782+6 to a change in the flight number of that aircraft.
4783+7 (23) A transaction in which the purchase order is
4784+8 received by a florist who is located outside Illinois, but
4785+9 who has a florist located in Illinois deliver the property
4786+10 to the purchaser or the purchaser's donee in Illinois.
4787+11 (24) Fuel consumed or used in the operation of ships,
4788+12 barges, or vessels that are used primarily in or for the
4789+13 transportation of property or the conveyance of persons
4790+14 for hire on rivers bordering on this State if the fuel is
4791+15 delivered by the seller to the purchaser's barge, ship, or
4792+16 vessel while it is afloat upon that bordering river.
4793+17 (25) Except as provided in item (25-5) of this
4794+18 Section, a motor vehicle sold in this State to a
4795+19 nonresident even though the motor vehicle is delivered to
4796+20 the nonresident in this State, if the motor vehicle is not
4797+21 to be titled in this State, and if a drive-away permit is
4798+22 issued to the motor vehicle as provided in Section 3-603
4799+23 of the Illinois Vehicle Code or if the nonresident
4800+24 purchaser has vehicle registration plates to transfer to
4801+25 the motor vehicle upon returning to his or her home state.
4802+26 The issuance of the drive-away permit or having the
4803+
4804+
4805+
4806+
4807+
4808+ SB3476 Enrolled - 134 - LRB103 34190 HLH 64013 b
4809+
4810+
4811+SB3476 Enrolled- 135 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 135 - LRB103 34190 HLH 64013 b
4812+ SB3476 Enrolled - 135 - LRB103 34190 HLH 64013 b
4813+1 out-of-state registration plates to be transferred is
4814+2 prima facie evidence that the motor vehicle will not be
4815+3 titled in this State.
4816+4 (25-5) The exemption under item (25) does not apply if
4817+5 the state in which the motor vehicle will be titled does
4818+6 not allow a reciprocal exemption for a motor vehicle sold
4819+7 and delivered in that state to an Illinois resident but
4820+8 titled in Illinois. The tax collected under this Act on
4821+9 the sale of a motor vehicle in this State to a resident of
4822+10 another state that does not allow a reciprocal exemption
4823+11 shall be imposed at a rate equal to the state's rate of tax
4824+12 on taxable property in the state in which the purchaser is
4825+13 a resident, except that the tax shall not exceed the tax
4826+14 that would otherwise be imposed under this Act. At the
4827+15 time of the sale, the purchaser shall execute a statement,
4828+16 signed under penalty of perjury, of his or her intent to
4829+17 title the vehicle in the state in which the purchaser is a
4830+18 resident within 30 days after the sale and of the fact of
4831+19 the payment to the State of Illinois of tax in an amount
4832+20 equivalent to the state's rate of tax on taxable property
4833+21 in his or her state of residence and shall submit the
4834+22 statement to the appropriate tax collection agency in his
4835+23 or her state of residence. In addition, the retailer must
4836+24 retain a signed copy of the statement in his or her
4837+25 records. Nothing in this item shall be construed to
4838+26 require the removal of the vehicle from this state
4839+
4840+
4841+
4842+
4843+
4844+ SB3476 Enrolled - 135 - LRB103 34190 HLH 64013 b
4845+
4846+
4847+SB3476 Enrolled- 136 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 136 - LRB103 34190 HLH 64013 b
4848+ SB3476 Enrolled - 136 - LRB103 34190 HLH 64013 b
4849+1 following the filing of an intent to title the vehicle in
4850+2 the purchaser's state of residence if the purchaser titles
4851+3 the vehicle in his or her state of residence within 30 days
4852+4 after the date of sale. The tax collected under this Act in
4853+5 accordance with this item (25-5) shall be proportionately
4854+6 distributed as if the tax were collected at the 6.25%
4855+7 general rate imposed under this Act.
4856+8 (25-7) Beginning on July 1, 2007, no tax is imposed
4857+9 under this Act on the sale of an aircraft, as defined in
4858+10 Section 3 of the Illinois Aeronautics Act, if all of the
4859+11 following conditions are met:
4860+12 (1) the aircraft leaves this State within 15 days
4861+13 after the later of either the issuance of the final
4862+14 billing for the sale of the aircraft, or the
4863+15 authorized approval for return to service, completion
4864+16 of the maintenance record entry, and completion of the
4865+17 test flight and ground test for inspection, as
4866+18 required by 14 CFR 91.407;
4867+19 (2) the aircraft is not based or registered in
4868+20 this State after the sale of the aircraft; and
4869+21 (3) the seller retains in his or her books and
4870+22 records and provides to the Department a signed and
4871+23 dated certification from the purchaser, on a form
4872+24 prescribed by the Department, certifying that the
4873+25 requirements of this item (25-7) are met. The
4874+26 certificate must also include the name and address of
4875+
4876+
4877+
4878+
4879+
4880+ SB3476 Enrolled - 136 - LRB103 34190 HLH 64013 b
4881+
4882+
4883+SB3476 Enrolled- 137 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 137 - LRB103 34190 HLH 64013 b
4884+ SB3476 Enrolled - 137 - LRB103 34190 HLH 64013 b
4885+1 the purchaser, the address of the location where the
4886+2 aircraft is to be titled or registered, the address of
4887+3 the primary physical location of the aircraft, and
4888+4 other information that the Department may reasonably
4889+5 require.
4890+6 For purposes of this item (25-7):
4891+7 "Based in this State" means hangared, stored, or
4892+8 otherwise used, excluding post-sale customizations as
4893+9 defined in this Section, for 10 or more days in each
4894+10 12-month period immediately following the date of the sale
4895+11 of the aircraft.
4896+12 "Registered in this State" means an aircraft
4897+13 registered with the Department of Transportation,
4898+14 Aeronautics Division, or titled or registered with the
4899+15 Federal Aviation Administration to an address located in
4900+16 this State.
4901+17 This paragraph (25-7) is exempt from the provisions of
4902+18 Section 2-70.
4903+19 (26) Semen used for artificial insemination of
4904+20 livestock for direct agricultural production.
4905+21 (27) Horses, or interests in horses, registered with
4906+22 and meeting the requirements of any of the Arabian Horse
4907+23 Club Registry of America, Appaloosa Horse Club, American
4908+24 Quarter Horse Association, United States Trotting
4909+25 Association, or Jockey Club, as appropriate, used for
4910+26 purposes of breeding or racing for prizes. This item (27)
4911+
4912+
4913+
4914+
4915+
4916+ SB3476 Enrolled - 137 - LRB103 34190 HLH 64013 b
4917+
4918+
4919+SB3476 Enrolled- 138 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 138 - LRB103 34190 HLH 64013 b
4920+ SB3476 Enrolled - 138 - LRB103 34190 HLH 64013 b
4921+1 is exempt from the provisions of Section 2-70, and the
4922+2 exemption provided for under this item (27) applies for
4923+3 all periods beginning May 30, 1995, but no claim for
4924+4 credit or refund is allowed on or after January 1, 2008
4925+5 (the effective date of Public Act 95-88) for such taxes
4926+6 paid during the period beginning May 30, 2000 and ending
4927+7 on January 1, 2008 (the effective date of Public Act
4928+8 95-88).
4929+9 (28) Computers and communications equipment utilized
4930+10 for any hospital purpose and equipment used in the
4931+11 diagnosis, analysis, or treatment of hospital patients
4932+12 sold to a lessor who leases the equipment, under a lease of
4933+13 one year or longer executed or in effect at the time of the
4934+14 purchase, to a hospital that has been issued an active tax
4935+15 exemption identification number by the Department under
4936+16 Section 1g of this Act.
4937+17 (29) Personal property sold to a lessor who leases the
4938+18 property, under a lease of one year or longer executed or
4939+19 in effect at the time of the purchase, to a governmental
4940+20 body that has been issued an active tax exemption
4941+21 identification number by the Department under Section 1g
4942+22 of this Act.
4943+23 (30) Beginning with taxable years ending on or after
4944+24 December 31, 1995 and ending with taxable years ending on
4945+25 or before December 31, 2004, personal property that is
4946+26 donated for disaster relief to be used in a State or
4947+
4948+
4949+
4950+
4951+
4952+ SB3476 Enrolled - 138 - LRB103 34190 HLH 64013 b
4953+
4954+
4955+SB3476 Enrolled- 139 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 139 - LRB103 34190 HLH 64013 b
4956+ SB3476 Enrolled - 139 - LRB103 34190 HLH 64013 b
4957+1 federally declared disaster area in Illinois or bordering
4958+2 Illinois by a manufacturer or retailer that is registered
4959+3 in this State to a corporation, society, association,
4960+4 foundation, or institution that has been issued a sales
4961+5 tax exemption identification number by the Department that
4962+6 assists victims of the disaster who reside within the
4963+7 declared disaster area.
4964+8 (31) Beginning with taxable years ending on or after
4965+9 December 31, 1995 and ending with taxable years ending on
4966+10 or before December 31, 2004, personal property that is
4967+11 used in the performance of infrastructure repairs in this
4968+12 State, including, but not limited to, municipal roads and
4969+13 streets, access roads, bridges, sidewalks, waste disposal
4970+14 systems, water and sewer line extensions, water
4971+15 distribution and purification facilities, storm water
4972+16 drainage and retention facilities, and sewage treatment
4973+17 facilities, resulting from a State or federally declared
4974+18 disaster in Illinois or bordering Illinois when such
4975+19 repairs are initiated on facilities located in the
4976+20 declared disaster area within 6 months after the disaster.
4977+21 (32) Beginning July 1, 1999, game or game birds sold
4978+22 at a "game breeding and hunting preserve area" as that
4979+23 term is used in the Wildlife Code. This paragraph is
4980+24 exempt from the provisions of Section 2-70.
4981+25 (33) A motor vehicle, as that term is defined in
4982+26 Section 1-146 of the Illinois Vehicle Code, that is
4983+
4984+
4985+
4986+
4987+
4988+ SB3476 Enrolled - 139 - LRB103 34190 HLH 64013 b
4989+
4990+
4991+SB3476 Enrolled- 140 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 140 - LRB103 34190 HLH 64013 b
4992+ SB3476 Enrolled - 140 - LRB103 34190 HLH 64013 b
4993+1 donated to a corporation, limited liability company,
4994+2 society, association, foundation, or institution that is
4995+3 determined by the Department to be organized and operated
4996+4 exclusively for educational purposes. For purposes of this
4997+5 exemption, "a corporation, limited liability company,
4998+6 society, association, foundation, or institution organized
4999+7 and operated exclusively for educational purposes" means
5000+8 all tax-supported public schools, private schools that
5001+9 offer systematic instruction in useful branches of
5002+10 learning by methods common to public schools and that
5003+11 compare favorably in their scope and intensity with the
5004+12 course of study presented in tax-supported schools, and
5005+13 vocational or technical schools or institutes organized
5006+14 and operated exclusively to provide a course of study of
5007+15 not less than 6 weeks duration and designed to prepare
5008+16 individuals to follow a trade or to pursue a manual,
5009+17 technical, mechanical, industrial, business, or commercial
5010+18 occupation.
5011+19 (34) Beginning January 1, 2000, personal property,
5012+20 including food, purchased through fundraising events for
5013+21 the benefit of a public or private elementary or secondary
5014+22 school, a group of those schools, or one or more school
5015+23 districts if the events are sponsored by an entity
5016+24 recognized by the school district that consists primarily
5017+25 of volunteers and includes parents and teachers of the
5018+26 school children. This paragraph does not apply to
5019+
5020+
5021+
5022+
5023+
5024+ SB3476 Enrolled - 140 - LRB103 34190 HLH 64013 b
5025+
5026+
5027+SB3476 Enrolled- 141 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 141 - LRB103 34190 HLH 64013 b
5028+ SB3476 Enrolled - 141 - LRB103 34190 HLH 64013 b
5029+1 fundraising events (i) for the benefit of private home
5030+2 instruction or (ii) for which the fundraising entity
5031+3 purchases the personal property sold at the events from
5032+4 another individual or entity that sold the property for
5033+5 the purpose of resale by the fundraising entity and that
5034+6 profits from the sale to the fundraising entity. This
5035+7 paragraph is exempt from the provisions of Section 2-70.
5036+8 (35) Beginning January 1, 2000 and through December
5037+9 31, 2001, new or used automatic vending machines that
5038+10 prepare and serve hot food and beverages, including
5039+11 coffee, soup, and other items, and replacement parts for
5040+12 these machines. Beginning January 1, 2002 and through June
5041+13 30, 2003, machines and parts for machines used in
5042+14 commercial, coin-operated amusement and vending business
5043+15 if a use or occupation tax is paid on the gross receipts
5044+16 derived from the use of the commercial, coin-operated
5045+17 amusement and vending machines. This paragraph is exempt
5046+18 from the provisions of Section 2-70.
5047+19 (35-5) Beginning August 23, 2001 and through June 30,
5048+20 2016, food for human consumption that is to be consumed
5049+21 off the premises where it is sold (other than alcoholic
5050+22 beverages, soft drinks, and food that has been prepared
5051+23 for immediate consumption) and prescription and
5052+24 nonprescription medicines, drugs, medical appliances, and
5053+25 insulin, urine testing materials, syringes, and needles
5054+26 used by diabetics, for human use, when purchased for use
5055+
5056+
5057+
5058+
5059+
5060+ SB3476 Enrolled - 141 - LRB103 34190 HLH 64013 b
5061+
5062+
5063+SB3476 Enrolled- 142 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 142 - LRB103 34190 HLH 64013 b
5064+ SB3476 Enrolled - 142 - LRB103 34190 HLH 64013 b
5065+1 by a person receiving medical assistance under Article V
5066+2 of the Illinois Public Aid Code who resides in a licensed
5067+3 long-term care facility, as defined in the Nursing Home
5068+4 Care Act, or a licensed facility as defined in the ID/DD
5069+5 Community Care Act, the MC/DD Act, or the Specialized
5070+6 Mental Health Rehabilitation Act of 2013.
5071+7 (36) Beginning August 2, 2001, computers and
5072+8 communications equipment utilized for any hospital purpose
5073+9 and equipment used in the diagnosis, analysis, or
5074+10 treatment of hospital patients sold to a lessor who leases
5075+11 the equipment, under a lease of one year or longer
5076+12 executed or in effect at the time of the purchase, to a
5077+13 hospital that has been issued an active tax exemption
5078+14 identification number by the Department under Section 1g
5079+15 of this Act. This paragraph is exempt from the provisions
5080+16 of Section 2-70.
5081+17 (37) Beginning August 2, 2001, personal property sold
5082+18 to a lessor who leases the property, under a lease of one
5083+19 year or longer executed or in effect at the time of the
5084+20 purchase, to a governmental body that has been issued an
5085+21 active tax exemption identification number by the
5086+22 Department under Section 1g of this Act. This paragraph is
5087+23 exempt from the provisions of Section 2-70.
5088+24 (38) Beginning on January 1, 2002 and through June 30,
5089+25 2016, tangible personal property purchased from an
5090+26 Illinois retailer by a taxpayer engaged in centralized
5091+
5092+
5093+
5094+
5095+
5096+ SB3476 Enrolled - 142 - LRB103 34190 HLH 64013 b
5097+
5098+
5099+SB3476 Enrolled- 143 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 143 - LRB103 34190 HLH 64013 b
5100+ SB3476 Enrolled - 143 - LRB103 34190 HLH 64013 b
5101+1 purchasing activities in Illinois who will, upon receipt
5102+2 of the property in Illinois, temporarily store the
5103+3 property in Illinois (i) for the purpose of subsequently
5104+4 transporting it outside this State for use or consumption
5105+5 thereafter solely outside this State or (ii) for the
5106+6 purpose of being processed, fabricated, or manufactured
5107+7 into, attached to, or incorporated into other tangible
5108+8 personal property to be transported outside this State and
5109+9 thereafter used or consumed solely outside this State. The
5110+10 Director of Revenue shall, pursuant to rules adopted in
5111+11 accordance with the Illinois Administrative Procedure Act,
5112+12 issue a permit to any taxpayer in good standing with the
5113+13 Department who is eligible for the exemption under this
5114+14 paragraph (38). The permit issued under this paragraph
5115+15 (38) shall authorize the holder, to the extent and in the
5116+16 manner specified in the rules adopted under this Act, to
5117+17 purchase tangible personal property from a retailer exempt
5118+18 from the taxes imposed by this Act. Taxpayers shall
5119+19 maintain all necessary books and records to substantiate
5120+20 the use and consumption of all such tangible personal
5121+21 property outside of the State of Illinois.
5122+22 (39) Beginning January 1, 2008, tangible personal
5123+23 property used in the construction or maintenance of a
5124+24 community water supply, as defined under Section 3.145 of
5125+25 the Environmental Protection Act, that is operated by a
5126+26 not-for-profit corporation that holds a valid water supply
5127+
5128+
5129+
5130+
5131+
5132+ SB3476 Enrolled - 143 - LRB103 34190 HLH 64013 b
5133+
5134+
5135+SB3476 Enrolled- 144 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 144 - LRB103 34190 HLH 64013 b
5136+ SB3476 Enrolled - 144 - LRB103 34190 HLH 64013 b
5137+1 permit issued under Title IV of the Environmental
5138+2 Protection Act. This paragraph is exempt from the
5139+3 provisions of Section 2-70.
5140+4 (40) Beginning January 1, 2010 and continuing through
5141+5 December 31, 2029, materials, parts, equipment,
5142+6 components, and furnishings incorporated into or upon an
5143+7 aircraft as part of the modification, refurbishment,
5144+8 completion, replacement, repair, or maintenance of the
5145+9 aircraft. This exemption includes consumable supplies used
5146+10 in the modification, refurbishment, completion,
5147+11 replacement, repair, and maintenance of aircraft. However,
5148+12 until January 1, 2024, this exemption excludes any
5149+13 materials, parts, equipment, components, and consumable
5150+14 supplies used in the modification, replacement, repair,
5151+15 and maintenance of aircraft engines or power plants,
5152+16 whether such engines or power plants are installed or
5153+17 uninstalled upon any such aircraft. "Consumable supplies"
5154+18 include, but are not limited to, adhesive, tape,
5155+19 sandpaper, general purpose lubricants, cleaning solution,
5156+20 latex gloves, and protective films.
5157+21 Beginning January 1, 2010 and continuing through
5158+22 December 31, 2023, this exemption applies only to the sale
5159+23 of qualifying tangible personal property to persons who
5160+24 modify, refurbish, complete, replace, or maintain an
5161+25 aircraft and who (i) hold an Air Agency Certificate and
5162+26 are empowered to operate an approved repair station by the
5163+
5164+
5165+
5166+
5167+
5168+ SB3476 Enrolled - 144 - LRB103 34190 HLH 64013 b
5169+
5170+
5171+SB3476 Enrolled- 145 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 145 - LRB103 34190 HLH 64013 b
5172+ SB3476 Enrolled - 145 - LRB103 34190 HLH 64013 b
5173+1 Federal Aviation Administration, (ii) have a Class IV
5174+2 Rating, and (iii) conduct operations in accordance with
5175+3 Part 145 of the Federal Aviation Regulations. The
5176+4 exemption does not include aircraft operated by a
5177+5 commercial air carrier providing scheduled passenger air
5178+6 service pursuant to authority issued under Part 121 or
5179+7 Part 129 of the Federal Aviation Regulations. From January
5180+8 1, 2024 through December 31, 2029, this exemption applies
5181+9 only to the use of qualifying tangible personal property
5182+10 by: (A) persons who modify, refurbish, complete, repair,
5183+11 replace, or maintain aircraft and who (i) hold an Air
5184+12 Agency Certificate and are empowered to operate an
5185+13 approved repair station by the Federal Aviation
5186+14 Administration, (ii) have a Class IV Rating, and (iii)
5187+15 conduct operations in accordance with Part 145 of the
5188+16 Federal Aviation Regulations; and (B) persons who engage
5189+17 in the modification, replacement, repair, and maintenance
5190+18 of aircraft engines or power plants without regard to
5191+19 whether or not those persons meet the qualifications of
5192+20 item (A).
5193+21 The changes made to this paragraph (40) by Public Act
5194+22 98-534 are declarative of existing law. It is the intent
5195+23 of the General Assembly that the exemption under this
5196+24 paragraph (40) applies continuously from January 1, 2010
5197+25 through December 31, 2024; however, no claim for credit or
5198+26 refund is allowed for taxes paid as a result of the
5199+
5200+
5201+
5202+
5203+
5204+ SB3476 Enrolled - 145 - LRB103 34190 HLH 64013 b
5205+
5206+
5207+SB3476 Enrolled- 146 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 146 - LRB103 34190 HLH 64013 b
5208+ SB3476 Enrolled - 146 - LRB103 34190 HLH 64013 b
5209+1 disallowance of this exemption on or after January 1, 2015
5210+2 and prior to February 5, 2020 (the effective date of
5211+3 Public Act 101-629).
5212+4 (41) Tangible personal property sold to a
5213+5 public-facilities corporation, as described in Section
5214+6 11-65-10 of the Illinois Municipal Code, for purposes of
5215+7 constructing or furnishing a municipal convention hall,
5216+8 but only if the legal title to the municipal convention
5217+9 hall is transferred to the municipality without any
5218+10 further consideration by or on behalf of the municipality
5219+11 at the time of the completion of the municipal convention
5220+12 hall or upon the retirement or redemption of any bonds or
5221+13 other debt instruments issued by the public-facilities
5222+14 corporation in connection with the development of the
5223+15 municipal convention hall. This exemption includes
5224+16 existing public-facilities corporations as provided in
5225+17 Section 11-65-25 of the Illinois Municipal Code. This
5226+18 paragraph is exempt from the provisions of Section 2-70.
5227+19 (42) Beginning January 1, 2017 and through December
5228+20 31, 2026, menstrual pads, tampons, and menstrual cups.
5229+21 (43) Merchandise that is subject to the Rental
5230+22 Purchase Agreement Occupation and Use Tax. The purchaser
5231+23 must certify that the item is purchased to be rented
5232+24 subject to a rental-purchase rental purchase agreement, as
5233+25 defined in the Rental-Purchase Rental Purchase Agreement
5234+26 Act, and provide proof of registration under the Rental
5235+
5236+
5237+
5238+
5239+
5240+ SB3476 Enrolled - 146 - LRB103 34190 HLH 64013 b
5241+
5242+
5243+SB3476 Enrolled- 147 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 147 - LRB103 34190 HLH 64013 b
5244+ SB3476 Enrolled - 147 - LRB103 34190 HLH 64013 b
5245+1 Purchase Agreement Occupation and Use Tax Act. This
5246+2 paragraph is exempt from the provisions of Section 2-70.
5247+3 (44) Qualified tangible personal property used in the
5248+4 construction or operation of a data center that has been
5249+5 granted a certificate of exemption by the Department of
5250+6 Commerce and Economic Opportunity, whether that tangible
5251+7 personal property is purchased by the owner, operator, or
5252+8 tenant of the data center or by a contractor or
5253+9 subcontractor of the owner, operator, or tenant. Data
5254+10 centers that would have qualified for a certificate of
5255+11 exemption prior to January 1, 2020 had Public Act 101-31
5256+12 been in effect, may apply for and obtain an exemption for
5257+13 subsequent purchases of computer equipment or enabling
5258+14 software purchased or leased to upgrade, supplement, or
5259+15 replace computer equipment or enabling software purchased
5260+16 or leased in the original investment that would have
5261+17 qualified.
5262+18 The Department of Commerce and Economic Opportunity
5263+19 shall grant a certificate of exemption under this item
5264+20 (44) to qualified data centers as defined by Section
5265+21 605-1025 of the Department of Commerce and Economic
5266+22 Opportunity Law of the Civil Administrative Code of
5267+23 Illinois.
5268+24 For the purposes of this item (44):
5269+25 "Data center" means a building or a series of
5270+26 buildings rehabilitated or constructed to house
5271+
5272+
5273+
5274+
5275+
5276+ SB3476 Enrolled - 147 - LRB103 34190 HLH 64013 b
5277+
5278+
5279+SB3476 Enrolled- 148 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 148 - LRB103 34190 HLH 64013 b
5280+ SB3476 Enrolled - 148 - LRB103 34190 HLH 64013 b
5281+1 working servers in one physical location or multiple
5282+2 sites within the State of Illinois.
5283+3 "Qualified tangible personal property" means:
5284+4 electrical systems and equipment; climate control and
5285+5 chilling equipment and systems; mechanical systems and
5286+6 equipment; monitoring and secure systems; emergency
5287+7 generators; hardware; computers; servers; data storage
5288+8 devices; network connectivity equipment; racks;
5289+9 cabinets; telecommunications cabling infrastructure;
5290+10 raised floor systems; peripheral components or
5291+11 systems; software; mechanical, electrical, or plumbing
5292+12 systems; battery systems; cooling systems and towers;
5293+13 temperature control systems; other cabling; and other
5294+14 data center infrastructure equipment and systems
5295+15 necessary to operate qualified tangible personal
5296+16 property, including fixtures; and component parts of
5297+17 any of the foregoing, including installation,
5298+18 maintenance, repair, refurbishment, and replacement of
5299+19 qualified tangible personal property to generate,
5300+20 transform, transmit, distribute, or manage electricity
5301+21 necessary to operate qualified tangible personal
5302+22 property; and all other tangible personal property
5303+23 that is essential to the operations of a computer data
5304+24 center. The term "qualified tangible personal
5305+25 property" also includes building materials physically
5306+26 incorporated into the qualifying data center. To
5307+
5308+
5309+
5310+
5311+
5312+ SB3476 Enrolled - 148 - LRB103 34190 HLH 64013 b
5313+
5314+
5315+SB3476 Enrolled- 149 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 149 - LRB103 34190 HLH 64013 b
5316+ SB3476 Enrolled - 149 - LRB103 34190 HLH 64013 b
5317+1 document the exemption allowed under this Section, the
5318+2 retailer must obtain from the purchaser a copy of the
5319+3 certificate of eligibility issued by the Department of
5320+4 Commerce and Economic Opportunity.
5321+5 This item (44) is exempt from the provisions of
5322+6 Section 2-70.
5323+7 (45) Beginning January 1, 2020 and through December
5324+8 31, 2020, sales of tangible personal property made by a
5325+9 marketplace seller over a marketplace for which tax is due
5326+10 under this Act but for which use tax has been collected and
5327+11 remitted to the Department by a marketplace facilitator
5328+12 under Section 2d of the Use Tax Act are exempt from tax
5329+13 under this Act. A marketplace seller claiming this
5330+14 exemption shall maintain books and records demonstrating
5331+15 that the use tax on such sales has been collected and
5332+16 remitted by a marketplace facilitator. Marketplace sellers
5333+17 that have properly remitted tax under this Act on such
5334+18 sales may file a claim for credit as provided in Section 6
5335+19 of this Act. No claim is allowed, however, for such taxes
5336+20 for which a credit or refund has been issued to the
5337+21 marketplace facilitator under the Use Tax Act, or for
5338+22 which the marketplace facilitator has filed a claim for
5339+23 credit or refund under the Use Tax Act.
5340+24 (46) Beginning July 1, 2022, breast pumps, breast pump
5341+25 collection and storage supplies, and breast pump kits.
5342+26 This item (46) is exempt from the provisions of Section
5343+
5344+
5345+
5346+
5347+
5348+ SB3476 Enrolled - 149 - LRB103 34190 HLH 64013 b
5349+
5350+
5351+SB3476 Enrolled- 150 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 150 - LRB103 34190 HLH 64013 b
5352+ SB3476 Enrolled - 150 - LRB103 34190 HLH 64013 b
5353+1 2-70. As used in this item (46):
5354+2 "Breast pump" means an electrically controlled or
5355+3 manually controlled pump device designed or marketed to be
5356+4 used to express milk from a human breast during lactation,
5357+5 including the pump device and any battery, AC adapter, or
5358+6 other power supply unit that is used to power the pump
5359+7 device and is packaged and sold with the pump device at the
5360+8 time of sale.
5361+9 "Breast pump collection and storage supplies" means
5362+10 items of tangible personal property designed or marketed
5363+11 to be used in conjunction with a breast pump to collect
5364+12 milk expressed from a human breast and to store collected
5365+13 milk until it is ready for consumption.
5366+14 "Breast pump collection and storage supplies"
5367+15 includes, but is not limited to: breast shields and breast
5368+16 shield connectors; breast pump tubes and tubing adapters;
5369+17 breast pump valves and membranes; backflow protectors and
5370+18 backflow protector adaptors; bottles and bottle caps
5371+19 specific to the operation of the breast pump; and breast
5372+20 milk storage bags.
5373+21 "Breast pump collection and storage supplies" does not
5374+22 include: (1) bottles and bottle caps not specific to the
5375+23 operation of the breast pump; (2) breast pump travel bags
5376+24 and other similar carrying accessories, including ice
5377+25 packs, labels, and other similar products; (3) breast pump
5378+26 cleaning supplies; (4) nursing bras, bra pads, breast
5379+
5380+
5381+
5382+
5383+
5384+ SB3476 Enrolled - 150 - LRB103 34190 HLH 64013 b
5385+
5386+
5387+SB3476 Enrolled- 151 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 151 - LRB103 34190 HLH 64013 b
5388+ SB3476 Enrolled - 151 - LRB103 34190 HLH 64013 b
5389+1 shells, and other similar products; and (5) creams,
5390+2 ointments, and other similar products that relieve
5391+3 breastfeeding-related symptoms or conditions of the
5392+4 breasts or nipples, unless sold as part of a breast pump
5393+5 kit that is pre-packaged by the breast pump manufacturer
5394+6 or distributor.
5395+7 "Breast pump kit" means a kit that: (1) contains no
5396+8 more than a breast pump, breast pump collection and
5397+9 storage supplies, a rechargeable battery for operating the
5398+10 breast pump, a breastmilk cooler, bottle stands, ice
5399+11 packs, and a breast pump carrying case; and (2) is
5400+12 pre-packaged as a breast pump kit by the breast pump
5401+13 manufacturer or distributor.
5402+14 (47) Tangible personal property sold by or on behalf
5403+15 of the State Treasurer pursuant to the Revised Uniform
5404+16 Unclaimed Property Act. This item (47) is exempt from the
5405+17 provisions of Section 2-70.
5406+18 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
5407+19 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
5408+20 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
5409+21 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
5410+22 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
5411+23 6-7-23; 103-154, eff. 6-30-23; revised 9-26-23.)
5412+24 (Text of Section after amendment by P.A. 103-384)
5413+25 Sec. 2-5. Exemptions. Gross receipts from proceeds from
5414+
5415+
5416+
5417+
5418+
5419+ SB3476 Enrolled - 151 - LRB103 34190 HLH 64013 b
5420+
5421+
5422+SB3476 Enrolled- 152 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 152 - LRB103 34190 HLH 64013 b
5423+ SB3476 Enrolled - 152 - LRB103 34190 HLH 64013 b
5424+1 the sale of the following tangible personal property are
5425+2 exempt from the tax imposed by this Act:
5426+3 (1) Farm chemicals.
5427+4 (2) Farm machinery and equipment, both new and used,
5428+5 including that manufactured on special order, certified by
5429+6 the purchaser to be used primarily for production
5430+7 agriculture or State or federal agricultural programs,
5431+8 including individual replacement parts for the machinery
5432+9 and equipment, including machinery and equipment purchased
5433+10 for lease, and including implements of husbandry defined
5434+11 in Section 1-130 of the Illinois Vehicle Code, farm
5435+12 machinery and agricultural chemical and fertilizer
5436+13 spreaders, and nurse wagons required to be registered
5437+14 under Section 3-809 of the Illinois Vehicle Code, but
5438+15 excluding other motor vehicles required to be registered
5439+16 under the Illinois Vehicle Code. Horticultural polyhouses
5440+17 or hoop houses used for propagating, growing, or
5441+18 overwintering plants shall be considered farm machinery
5442+19 and equipment under this item (2). Agricultural chemical
5443+20 tender tanks and dry boxes shall include units sold
5444+21 separately from a motor vehicle required to be licensed
5445+22 and units sold mounted on a motor vehicle required to be
5446+23 licensed, if the selling price of the tender is separately
5447+24 stated.
5448+25 Farm machinery and equipment shall include precision
5449+26 farming equipment that is installed or purchased to be
5450+
5451+
5452+
5453+
5454+
5455+ SB3476 Enrolled - 152 - LRB103 34190 HLH 64013 b
5456+
5457+
5458+SB3476 Enrolled- 153 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 153 - LRB103 34190 HLH 64013 b
5459+ SB3476 Enrolled - 153 - LRB103 34190 HLH 64013 b
5460+1 installed on farm machinery and equipment including, but
5461+2 not limited to, tractors, harvesters, sprayers, planters,
5462+3 seeders, or spreaders. Precision farming equipment
5463+4 includes, but is not limited to, soil testing sensors,
5464+5 computers, monitors, software, global positioning and
5465+6 mapping systems, and other such equipment.
5466+7 Farm machinery and equipment also includes computers,
5467+8 sensors, software, and related equipment used primarily in
5468+9 the computer-assisted operation of production agriculture
5469+10 facilities, equipment, and activities such as, but not
5470+11 limited to, the collection, monitoring, and correlation of
5471+12 animal and crop data for the purpose of formulating animal
5472+13 diets and agricultural chemicals.
5473+14 Beginning on January 1, 2024, farm machinery and
5474+15 equipment also includes electrical power generation
5475+16 equipment used primarily for production agriculture.
5476+17 This item (2) is exempt from the provisions of Section
5477+18 2-70.
5478+19 (3) Until July 1, 2003, distillation machinery and
5479+20 equipment, sold as a unit or kit, assembled or installed
5480+21 by the retailer, certified by the user to be used only for
5481+22 the production of ethyl alcohol that will be used for
5482+23 consumption as motor fuel or as a component of motor fuel
5483+24 for the personal use of the user, and not subject to sale
5484+25 or resale.
5485+26 (4) Until July 1, 2003 and beginning again September
5486+
5487+
5488+
5489+
5490+
5491+ SB3476 Enrolled - 153 - LRB103 34190 HLH 64013 b
5492+
5493+
5494+SB3476 Enrolled- 154 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 154 - LRB103 34190 HLH 64013 b
5495+ SB3476 Enrolled - 154 - LRB103 34190 HLH 64013 b
5496+1 1, 2004 through August 30, 2014, graphic arts machinery
5497+2 and equipment, including repair and replacement parts,
5498+3 both new and used, and including that manufactured on
5499+4 special order or purchased for lease, certified by the
5500+5 purchaser to be used primarily for graphic arts
5501+6 production. Equipment includes chemicals or chemicals
5502+7 acting as catalysts but only if the chemicals or chemicals
5503+8 acting as catalysts effect a direct and immediate change
5504+9 upon a graphic arts product. Beginning on July 1, 2017,
5505+10 graphic arts machinery and equipment is included in the
5506+11 manufacturing and assembling machinery and equipment
5507+12 exemption under paragraph (14).
5508+13 (5) A motor vehicle that is used for automobile
5509+14 renting, as defined in the Automobile Renting Occupation
5510+15 and Use Tax Act. This paragraph is exempt from the
5511+16 provisions of Section 2-70.
5512+17 (6) Personal property sold by a teacher-sponsored
5513+18 student organization affiliated with an elementary or
5514+19 secondary school located in Illinois.
5515+20 (7) Until July 1, 2003, proceeds of that portion of
5516+21 the selling price of a passenger car the sale of which is
5517+22 subject to the Replacement Vehicle Tax.
5518+23 (8) Personal property sold to an Illinois county fair
5519+24 association for use in conducting, operating, or promoting
5520+25 the county fair.
5521+26 (9) Personal property sold to a not-for-profit arts or
5522+
5523+
5524+
5525+
5526+
5527+ SB3476 Enrolled - 154 - LRB103 34190 HLH 64013 b
5528+
5529+
5530+SB3476 Enrolled- 155 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 155 - LRB103 34190 HLH 64013 b
5531+ SB3476 Enrolled - 155 - LRB103 34190 HLH 64013 b
5532+1 cultural organization that establishes, by proof required
5533+2 by the Department by rule, that it has received an
5534+3 exemption under Section 501(c)(3) of the Internal Revenue
5535+4 Code and that is organized and operated primarily for the
5536+5 presentation or support of arts or cultural programming,
5537+6 activities, or services. These organizations include, but
5538+7 are not limited to, music and dramatic arts organizations
5539+8 such as symphony orchestras and theatrical groups, arts
5540+9 and cultural service organizations, local arts councils,
5541+10 visual arts organizations, and media arts organizations.
5542+11 On and after July 1, 2001 (the effective date of Public Act
5543+12 92-35), however, an entity otherwise eligible for this
5544+13 exemption shall not make tax-free purchases unless it has
5545+14 an active identification number issued by the Department.
5546+15 (10) Personal property sold by a corporation, society,
5547+16 association, foundation, institution, or organization,
5548+17 other than a limited liability company, that is organized
5549+18 and operated as a not-for-profit service enterprise for
5550+19 the benefit of persons 65 years of age or older if the
5551+20 personal property was not purchased by the enterprise for
5552+21 the purpose of resale by the enterprise.
5553+22 (11) Except as otherwise provided in this Section,
5554+23 personal property sold to a governmental body, to a
5555+24 corporation, society, association, foundation, or
5556+25 institution organized and operated exclusively for
5557+26 charitable, religious, or educational purposes, or to a
5558+
5559+
5560+
5561+
5562+
5563+ SB3476 Enrolled - 155 - LRB103 34190 HLH 64013 b
5564+
5565+
5566+SB3476 Enrolled- 156 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 156 - LRB103 34190 HLH 64013 b
5567+ SB3476 Enrolled - 156 - LRB103 34190 HLH 64013 b
5568+1 not-for-profit corporation, society, association,
5569+2 foundation, institution, or organization that has no
5570+3 compensated officers or employees and that is organized
5571+4 and operated primarily for the recreation of persons 55
5572+5 years of age or older. A limited liability company may
5573+6 qualify for the exemption under this paragraph only if the
5574+7 limited liability company is organized and operated
5575+8 exclusively for educational purposes. On and after July 1,
5576+9 1987, however, no entity otherwise eligible for this
5577+10 exemption shall make tax-free purchases unless it has an
5578+11 active identification number issued by the Department.
5579+12 (12) (Blank).
5580+13 (12-5) On and after July 1, 2003 and through June 30,
5581+14 2004, motor vehicles of the second division with a gross
5582+15 vehicle weight in excess of 8,000 pounds that are subject
5583+16 to the commercial distribution fee imposed under Section
5584+17 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
5585+18 2004 and through June 30, 2005, the use in this State of
5586+19 motor vehicles of the second division: (i) with a gross
5587+20 vehicle weight rating in excess of 8,000 pounds; (ii) that
5588+21 are subject to the commercial distribution fee imposed
5589+22 under Section 3-815.1 of the Illinois Vehicle Code; and
5590+23 (iii) that are primarily used for commercial purposes.
5591+24 Through June 30, 2005, this exemption applies to repair
5592+25 and replacement parts added after the initial purchase of
5593+26 such a motor vehicle if that motor vehicle is used in a
5594+
5595+
5596+
5597+
5598+
5599+ SB3476 Enrolled - 156 - LRB103 34190 HLH 64013 b
5600+
5601+
5602+SB3476 Enrolled- 157 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 157 - LRB103 34190 HLH 64013 b
5603+ SB3476 Enrolled - 157 - LRB103 34190 HLH 64013 b
5604+1 manner that would qualify for the rolling stock exemption
5605+2 otherwise provided for in this Act. For purposes of this
5606+3 paragraph, "used for commercial purposes" means the
5607+4 transportation of persons or property in furtherance of
5608+5 any commercial or industrial enterprise whether for-hire
5609+6 or not.
5610+7 (13) Proceeds from sales to owners, lessors, or
5611+8 shippers of tangible personal property that is utilized by
5612+9 interstate carriers for hire for use as rolling stock
5613+10 moving in interstate commerce and equipment operated by a
5614+11 telecommunications provider, licensed as a common carrier
5615+12 by the Federal Communications Commission, which is
5616+13 permanently installed in or affixed to aircraft moving in
5617+14 interstate commerce.
5618+15 (14) Machinery and equipment that will be used by the
5619+16 purchaser, or a lessee of the purchaser, primarily in the
5620+17 process of manufacturing or assembling tangible personal
5621+18 property for wholesale or retail sale or lease, whether
5622+19 the sale or lease is made directly by the manufacturer or
5623+20 by some other person, whether the materials used in the
5624+21 process are owned by the manufacturer or some other
5625+22 person, or whether the sale or lease is made apart from or
5626+23 as an incident to the seller's engaging in the service
5627+24 occupation of producing machines, tools, dies, jigs,
5628+25 patterns, gauges, or other similar items of no commercial
5629+26 value on special order for a particular purchaser. The
5630+
5631+
5632+
5633+
5634+
5635+ SB3476 Enrolled - 157 - LRB103 34190 HLH 64013 b
5636+
5637+
5638+SB3476 Enrolled- 158 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 158 - LRB103 34190 HLH 64013 b
5639+ SB3476 Enrolled - 158 - LRB103 34190 HLH 64013 b
5640+1 exemption provided by this paragraph (14) does not include
5641+2 machinery and equipment used in (i) the generation of
5642+3 electricity for wholesale or retail sale; (ii) the
5643+4 generation or treatment of natural or artificial gas for
5644+5 wholesale or retail sale that is delivered to customers
5645+6 through pipes, pipelines, or mains; or (iii) the treatment
5646+7 of water for wholesale or retail sale that is delivered to
5647+8 customers through pipes, pipelines, or mains. The
5648+9 provisions of Public Act 98-583 are declaratory of
5649+10 existing law as to the meaning and scope of this
5650+11 exemption. Beginning on July 1, 2017, the exemption
5651+12 provided by this paragraph (14) includes, but is not
5652+13 limited to, graphic arts machinery and equipment, as
5653+14 defined in paragraph (4) of this Section.
5654+15 (15) Proceeds of mandatory service charges separately
5655+16 stated on customers' bills for purchase and consumption of
5656+17 food and beverages, to the extent that the proceeds of the
5657+18 service charge are in fact turned over as tips or as a
5658+19 substitute for tips to the employees who participate
5659+20 directly in preparing, serving, hosting or cleaning up the
5660+21 food or beverage function with respect to which the
5661+22 service charge is imposed.
5662+23 (16) Tangible personal property sold to a purchaser if
5663+24 the purchaser is exempt from use tax by operation of
5664+25 federal law. This paragraph is exempt from the provisions
5665+26 of Section 2-70.
5666+
5667+
5668+
5669+
5670+
5671+ SB3476 Enrolled - 158 - LRB103 34190 HLH 64013 b
5672+
5673+
5674+SB3476 Enrolled- 159 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 159 - LRB103 34190 HLH 64013 b
5675+ SB3476 Enrolled - 159 - LRB103 34190 HLH 64013 b
5676+1 (17) Tangible personal property sold to a common
5677+2 carrier by rail or motor that receives the physical
5678+3 possession of the property in Illinois and that transports
5679+4 the property, or shares with another common carrier in the
5680+5 transportation of the property, out of Illinois on a
5681+6 standard uniform bill of lading showing the seller of the
5682+7 property as the shipper or consignor of the property to a
5683+8 destination outside Illinois, for use outside Illinois.
5684+9 (18) Legal tender, currency, medallions, or gold or
5685+10 silver coinage issued by the State of Illinois, the
5686+11 government of the United States of America, or the
5687+12 government of any foreign country, and bullion.
5688+13 (19) Until July 1, 2003, oil field exploration,
5689+14 drilling, and production equipment, including (i) rigs and
5690+15 parts of rigs, rotary rigs, cable tool rigs, and workover
5691+16 rigs, (ii) pipe and tubular goods, including casing and
5692+17 drill strings, (iii) pumps and pump-jack units, (iv)
5693+18 storage tanks and flow lines, (v) any individual
5694+19 replacement part for oil field exploration, drilling, and
5695+20 production equipment, and (vi) machinery and equipment
5696+21 purchased for lease; but excluding motor vehicles required
5697+22 to be registered under the Illinois Vehicle Code.
5698+23 (20) Photoprocessing machinery and equipment,
5699+24 including repair and replacement parts, both new and used,
5700+25 including that manufactured on special order, certified by
5701+26 the purchaser to be used primarily for photoprocessing,
5702+
5703+
5704+
5705+
5706+
5707+ SB3476 Enrolled - 159 - LRB103 34190 HLH 64013 b
5708+
5709+
5710+SB3476 Enrolled- 160 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 160 - LRB103 34190 HLH 64013 b
5711+ SB3476 Enrolled - 160 - LRB103 34190 HLH 64013 b
5712+1 and including photoprocessing machinery and equipment
5713+2 purchased for lease.
5714+3 (21) Until July 1, 2028, coal and aggregate
5715+4 exploration, mining, off-highway hauling, processing,
5716+5 maintenance, and reclamation equipment, including
5717+6 replacement parts and equipment, and including equipment
5718+7 purchased for lease, but excluding motor vehicles required
5719+8 to be registered under the Illinois Vehicle Code. The
5720+9 changes made to this Section by Public Act 97-767 apply on
5721+10 and after July 1, 2003, but no claim for credit or refund
5722+11 is allowed on or after August 16, 2013 (the effective date
5723+12 of Public Act 98-456) for such taxes paid during the
5724+13 period beginning July 1, 2003 and ending on August 16,
5725+14 2013 (the effective date of Public Act 98-456).
5726+15 (22) Until June 30, 2013, fuel and petroleum products
5727+16 sold to or used by an air carrier, certified by the carrier
5728+17 to be used for consumption, shipment, or storage in the
5729+18 conduct of its business as an air common carrier, for a
5730+19 flight destined for or returning from a location or
5731+20 locations outside the United States without regard to
5732+21 previous or subsequent domestic stopovers.
5733+22 Beginning July 1, 2013, fuel and petroleum products
5734+23 sold to or used by an air carrier, certified by the carrier
5735+24 to be used for consumption, shipment, or storage in the
5736+25 conduct of its business as an air common carrier, for a
5737+26 flight that (i) is engaged in foreign trade or is engaged
5738+
5739+
5740+
5741+
5742+
5743+ SB3476 Enrolled - 160 - LRB103 34190 HLH 64013 b
5744+
5745+
5746+SB3476 Enrolled- 161 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 161 - LRB103 34190 HLH 64013 b
5747+ SB3476 Enrolled - 161 - LRB103 34190 HLH 64013 b
5748+1 in trade between the United States and any of its
5749+2 possessions and (ii) transports at least one individual or
5750+3 package for hire from the city of origination to the city
5751+4 of final destination on the same aircraft, without regard
5752+5 to a change in the flight number of that aircraft.
5753+6 (23) A transaction in which the purchase order is
5754+7 received by a florist who is located outside Illinois, but
5755+8 who has a florist located in Illinois deliver the property
5756+9 to the purchaser or the purchaser's donee in Illinois.
5757+10 (24) Fuel consumed or used in the operation of ships,
5758+11 barges, or vessels that are used primarily in or for the
5759+12 transportation of property or the conveyance of persons
5760+13 for hire on rivers bordering on this State if the fuel is
5761+14 delivered by the seller to the purchaser's barge, ship, or
5762+15 vessel while it is afloat upon that bordering river.
5763+16 (25) Except as provided in item (25-5) of this
5764+17 Section, a motor vehicle sold in this State to a
5765+18 nonresident even though the motor vehicle is delivered to
5766+19 the nonresident in this State, if the motor vehicle is not
5767+20 to be titled in this State, and if a drive-away permit is
5768+21 issued to the motor vehicle as provided in Section 3-603
5769+22 of the Illinois Vehicle Code or if the nonresident
5770+23 purchaser has vehicle registration plates to transfer to
5771+24 the motor vehicle upon returning to his or her home state.
5772+25 The issuance of the drive-away permit or having the
5773+26 out-of-state registration plates to be transferred is
5774+
5775+
5776+
5777+
5778+
5779+ SB3476 Enrolled - 161 - LRB103 34190 HLH 64013 b
5780+
5781+
5782+SB3476 Enrolled- 162 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 162 - LRB103 34190 HLH 64013 b
5783+ SB3476 Enrolled - 162 - LRB103 34190 HLH 64013 b
5784+1 prima facie evidence that the motor vehicle will not be
5785+2 titled in this State.
5786+3 (25-5) The exemption under item (25) does not apply if
5787+4 the state in which the motor vehicle will be titled does
5788+5 not allow a reciprocal exemption for a motor vehicle sold
5789+6 and delivered in that state to an Illinois resident but
5790+7 titled in Illinois. The tax collected under this Act on
5791+8 the sale of a motor vehicle in this State to a resident of
5792+9 another state that does not allow a reciprocal exemption
5793+10 shall be imposed at a rate equal to the state's rate of tax
5794+11 on taxable property in the state in which the purchaser is
5795+12 a resident, except that the tax shall not exceed the tax
5796+13 that would otherwise be imposed under this Act. At the
5797+14 time of the sale, the purchaser shall execute a statement,
5798+15 signed under penalty of perjury, of his or her intent to
5799+16 title the vehicle in the state in which the purchaser is a
5800+17 resident within 30 days after the sale and of the fact of
5801+18 the payment to the State of Illinois of tax in an amount
5802+19 equivalent to the state's rate of tax on taxable property
5803+20 in his or her state of residence and shall submit the
5804+21 statement to the appropriate tax collection agency in his
5805+22 or her state of residence. In addition, the retailer must
5806+23 retain a signed copy of the statement in his or her
5807+24 records. Nothing in this item shall be construed to
5808+25 require the removal of the vehicle from this state
5809+26 following the filing of an intent to title the vehicle in
5810+
5811+
5812+
5813+
5814+
5815+ SB3476 Enrolled - 162 - LRB103 34190 HLH 64013 b
5816+
5817+
5818+SB3476 Enrolled- 163 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 163 - LRB103 34190 HLH 64013 b
5819+ SB3476 Enrolled - 163 - LRB103 34190 HLH 64013 b
5820+1 the purchaser's state of residence if the purchaser titles
5821+2 the vehicle in his or her state of residence within 30 days
5822+3 after the date of sale. The tax collected under this Act in
5823+4 accordance with this item (25-5) shall be proportionately
5824+5 distributed as if the tax were collected at the 6.25%
5825+6 general rate imposed under this Act.
5826+7 (25-7) Beginning on July 1, 2007, no tax is imposed
5827+8 under this Act on the sale of an aircraft, as defined in
5828+9 Section 3 of the Illinois Aeronautics Act, if all of the
5829+10 following conditions are met:
5830+11 (1) the aircraft leaves this State within 15 days
5831+12 after the later of either the issuance of the final
5832+13 billing for the sale of the aircraft, or the
5833+14 authorized approval for return to service, completion
5834+15 of the maintenance record entry, and completion of the
5835+16 test flight and ground test for inspection, as
5836+17 required by 14 CFR 91.407;
5837+18 (2) the aircraft is not based or registered in
5838+19 this State after the sale of the aircraft; and
5839+20 (3) the seller retains in his or her books and
5840+21 records and provides to the Department a signed and
5841+22 dated certification from the purchaser, on a form
5842+23 prescribed by the Department, certifying that the
5843+24 requirements of this item (25-7) are met. The
5844+25 certificate must also include the name and address of
5845+26 the purchaser, the address of the location where the
5846+
5847+
5848+
5849+
5850+
5851+ SB3476 Enrolled - 163 - LRB103 34190 HLH 64013 b
5852+
5853+
5854+SB3476 Enrolled- 164 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 164 - LRB103 34190 HLH 64013 b
5855+ SB3476 Enrolled - 164 - LRB103 34190 HLH 64013 b
5856+1 aircraft is to be titled or registered, the address of
5857+2 the primary physical location of the aircraft, and
5858+3 other information that the Department may reasonably
5859+4 require.
5860+5 For purposes of this item (25-7):
5861+6 "Based in this State" means hangared, stored, or
5862+7 otherwise used, excluding post-sale customizations as
5863+8 defined in this Section, for 10 or more days in each
5864+9 12-month period immediately following the date of the sale
5865+10 of the aircraft.
5866+11 "Registered in this State" means an aircraft
5867+12 registered with the Department of Transportation,
5868+13 Aeronautics Division, or titled or registered with the
5869+14 Federal Aviation Administration to an address located in
5870+15 this State.
5871+16 This paragraph (25-7) is exempt from the provisions of
5872+17 Section 2-70.
5873+18 (26) Semen used for artificial insemination of
5874+19 livestock for direct agricultural production.
5875+20 (27) Horses, or interests in horses, registered with
5876+21 and meeting the requirements of any of the Arabian Horse
5877+22 Club Registry of America, Appaloosa Horse Club, American
5878+23 Quarter Horse Association, United States Trotting
5879+24 Association, or Jockey Club, as appropriate, used for
5880+25 purposes of breeding or racing for prizes. This item (27)
5881+26 is exempt from the provisions of Section 2-70, and the
5882+
5883+
5884+
5885+
5886+
5887+ SB3476 Enrolled - 164 - LRB103 34190 HLH 64013 b
5888+
5889+
5890+SB3476 Enrolled- 165 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 165 - LRB103 34190 HLH 64013 b
5891+ SB3476 Enrolled - 165 - LRB103 34190 HLH 64013 b
5892+1 exemption provided for under this item (27) applies for
5893+2 all periods beginning May 30, 1995, but no claim for
5894+3 credit or refund is allowed on or after January 1, 2008
5895+4 (the effective date of Public Act 95-88) for such taxes
5896+5 paid during the period beginning May 30, 2000 and ending
5897+6 on January 1, 2008 (the effective date of Public Act
5898+7 95-88).
5899+8 (28) Computers and communications equipment utilized
5900+9 for any hospital purpose and equipment used in the
5901+10 diagnosis, analysis, or treatment of hospital patients
5902+11 sold to a lessor who leases the equipment, under a lease of
5903+12 one year or longer executed or in effect at the time of the
5904+13 purchase, to a hospital that has been issued an active tax
5905+14 exemption identification number by the Department under
5906+15 Section 1g of this Act.
5907+16 (29) Personal property sold to a lessor who leases the
5908+17 property, under a lease of one year or longer executed or
5909+18 in effect at the time of the purchase, to a governmental
5910+19 body that has been issued an active tax exemption
5911+20 identification number by the Department under Section 1g
5912+21 of this Act.
5913+22 (30) Beginning with taxable years ending on or after
5914+23 December 31, 1995 and ending with taxable years ending on
5915+24 or before December 31, 2004, personal property that is
5916+25 donated for disaster relief to be used in a State or
5917+26 federally declared disaster area in Illinois or bordering
5918+
5919+
5920+
5921+
5922+
5923+ SB3476 Enrolled - 165 - LRB103 34190 HLH 64013 b
5924+
5925+
5926+SB3476 Enrolled- 166 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 166 - LRB103 34190 HLH 64013 b
5927+ SB3476 Enrolled - 166 - LRB103 34190 HLH 64013 b
5928+1 Illinois by a manufacturer or retailer that is registered
5929+2 in this State to a corporation, society, association,
5930+3 foundation, or institution that has been issued a sales
5931+4 tax exemption identification number by the Department that
5932+5 assists victims of the disaster who reside within the
5933+6 declared disaster area.
5934+7 (31) Beginning with taxable years ending on or after
5935+8 December 31, 1995 and ending with taxable years ending on
5936+9 or before December 31, 2004, personal property that is
5937+10 used in the performance of infrastructure repairs in this
5938+11 State, including, but not limited to, municipal roads and
5939+12 streets, access roads, bridges, sidewalks, waste disposal
5940+13 systems, water and sewer line extensions, water
5941+14 distribution and purification facilities, storm water
5942+15 drainage and retention facilities, and sewage treatment
5943+16 facilities, resulting from a State or federally declared
5944+17 disaster in Illinois or bordering Illinois when such
5945+18 repairs are initiated on facilities located in the
5946+19 declared disaster area within 6 months after the disaster.
5947+20 (32) Beginning July 1, 1999, game or game birds sold
5948+21 at a "game breeding and hunting preserve area" as that
5949+22 term is used in the Wildlife Code. This paragraph is
5950+23 exempt from the provisions of Section 2-70.
5951+24 (33) A motor vehicle, as that term is defined in
5952+25 Section 1-146 of the Illinois Vehicle Code, that is
5953+26 donated to a corporation, limited liability company,
5954+
5955+
5956+
5957+
5958+
5959+ SB3476 Enrolled - 166 - LRB103 34190 HLH 64013 b
5960+
5961+
5962+SB3476 Enrolled- 167 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 167 - LRB103 34190 HLH 64013 b
5963+ SB3476 Enrolled - 167 - LRB103 34190 HLH 64013 b
5964+1 society, association, foundation, or institution that is
5965+2 determined by the Department to be organized and operated
5966+3 exclusively for educational purposes. For purposes of this
5967+4 exemption, "a corporation, limited liability company,
5968+5 society, association, foundation, or institution organized
5969+6 and operated exclusively for educational purposes" means
5970+7 all tax-supported public schools, private schools that
5971+8 offer systematic instruction in useful branches of
5972+9 learning by methods common to public schools and that
5973+10 compare favorably in their scope and intensity with the
5974+11 course of study presented in tax-supported schools, and
5975+12 vocational or technical schools or institutes organized
5976+13 and operated exclusively to provide a course of study of
5977+14 not less than 6 weeks duration and designed to prepare
5978+15 individuals to follow a trade or to pursue a manual,
5979+16 technical, mechanical, industrial, business, or commercial
5980+17 occupation.
5981+18 (34) Beginning January 1, 2000, personal property,
5982+19 including food, purchased through fundraising events for
5983+20 the benefit of a public or private elementary or secondary
5984+21 school, a group of those schools, or one or more school
5985+22 districts if the events are sponsored by an entity
5986+23 recognized by the school district that consists primarily
5987+24 of volunteers and includes parents and teachers of the
5988+25 school children. This paragraph does not apply to
5989+26 fundraising events (i) for the benefit of private home
5990+
5991+
5992+
5993+
5994+
5995+ SB3476 Enrolled - 167 - LRB103 34190 HLH 64013 b
5996+
5997+
5998+SB3476 Enrolled- 168 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 168 - LRB103 34190 HLH 64013 b
5999+ SB3476 Enrolled - 168 - LRB103 34190 HLH 64013 b
6000+1 instruction or (ii) for which the fundraising entity
6001+2 purchases the personal property sold at the events from
6002+3 another individual or entity that sold the property for
6003+4 the purpose of resale by the fundraising entity and that
6004+5 profits from the sale to the fundraising entity. This
6005+6 paragraph is exempt from the provisions of Section 2-70.
6006+7 (35) Beginning January 1, 2000 and through December
6007+8 31, 2001, new or used automatic vending machines that
6008+9 prepare and serve hot food and beverages, including
6009+10 coffee, soup, and other items, and replacement parts for
6010+11 these machines. Beginning January 1, 2002 and through June
6011+12 30, 2003, machines and parts for machines used in
6012+13 commercial, coin-operated amusement and vending business
6013+14 if a use or occupation tax is paid on the gross receipts
6014+15 derived from the use of the commercial, coin-operated
6015+16 amusement and vending machines. This paragraph is exempt
6016+17 from the provisions of Section 2-70.
6017+18 (35-5) Beginning August 23, 2001 and through June 30,
6018+19 2016, food for human consumption that is to be consumed
6019+20 off the premises where it is sold (other than alcoholic
6020+21 beverages, soft drinks, and food that has been prepared
6021+22 for immediate consumption) and prescription and
6022+23 nonprescription medicines, drugs, medical appliances, and
6023+24 insulin, urine testing materials, syringes, and needles
6024+25 used by diabetics, for human use, when purchased for use
6025+26 by a person receiving medical assistance under Article V
6026+
6027+
6028+
6029+
6030+
6031+ SB3476 Enrolled - 168 - LRB103 34190 HLH 64013 b
6032+
6033+
6034+SB3476 Enrolled- 169 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 169 - LRB103 34190 HLH 64013 b
6035+ SB3476 Enrolled - 169 - LRB103 34190 HLH 64013 b
6036+1 of the Illinois Public Aid Code who resides in a licensed
6037+2 long-term care facility, as defined in the Nursing Home
6038+3 Care Act, or a licensed facility as defined in the ID/DD
6039+4 Community Care Act, the MC/DD Act, or the Specialized
6040+5 Mental Health Rehabilitation Act of 2013.
6041+6 (36) Beginning August 2, 2001, computers and
6042+7 communications equipment utilized for any hospital purpose
6043+8 and equipment used in the diagnosis, analysis, or
6044+9 treatment of hospital patients sold to a lessor who leases
6045+10 the equipment, under a lease of one year or longer
6046+11 executed or in effect at the time of the purchase, to a
6047+12 hospital that has been issued an active tax exemption
6048+13 identification number by the Department under Section 1g
6049+14 of this Act. This paragraph is exempt from the provisions
6050+15 of Section 2-70.
6051+16 (37) Beginning August 2, 2001, personal property sold
6052+17 to a lessor who leases the property, under a lease of one
6053+18 year or longer executed or in effect at the time of the
6054+19 purchase, to a governmental body that has been issued an
6055+20 active tax exemption identification number by the
6056+21 Department under Section 1g of this Act. This paragraph is
6057+22 exempt from the provisions of Section 2-70.
6058+23 (38) Beginning on January 1, 2002 and through June 30,
6059+24 2016, tangible personal property purchased from an
6060+25 Illinois retailer by a taxpayer engaged in centralized
6061+26 purchasing activities in Illinois who will, upon receipt
6062+
6063+
6064+
6065+
6066+
6067+ SB3476 Enrolled - 169 - LRB103 34190 HLH 64013 b
6068+
6069+
6070+SB3476 Enrolled- 170 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 170 - LRB103 34190 HLH 64013 b
6071+ SB3476 Enrolled - 170 - LRB103 34190 HLH 64013 b
6072+1 of the property in Illinois, temporarily store the
6073+2 property in Illinois (i) for the purpose of subsequently
6074+3 transporting it outside this State for use or consumption
6075+4 thereafter solely outside this State or (ii) for the
6076+5 purpose of being processed, fabricated, or manufactured
6077+6 into, attached to, or incorporated into other tangible
6078+7 personal property to be transported outside this State and
6079+8 thereafter used or consumed solely outside this State. The
6080+9 Director of Revenue shall, pursuant to rules adopted in
6081+10 accordance with the Illinois Administrative Procedure Act,
6082+11 issue a permit to any taxpayer in good standing with the
6083+12 Department who is eligible for the exemption under this
6084+13 paragraph (38). The permit issued under this paragraph
6085+14 (38) shall authorize the holder, to the extent and in the
6086+15 manner specified in the rules adopted under this Act, to
6087+16 purchase tangible personal property from a retailer exempt
6088+17 from the taxes imposed by this Act. Taxpayers shall
6089+18 maintain all necessary books and records to substantiate
6090+19 the use and consumption of all such tangible personal
6091+20 property outside of the State of Illinois.
6092+21 (39) Beginning January 1, 2008, tangible personal
6093+22 property used in the construction or maintenance of a
6094+23 community water supply, as defined under Section 3.145 of
6095+24 the Environmental Protection Act, that is operated by a
6096+25 not-for-profit corporation that holds a valid water supply
6097+26 permit issued under Title IV of the Environmental
6098+
6099+
6100+
6101+
6102+
6103+ SB3476 Enrolled - 170 - LRB103 34190 HLH 64013 b
6104+
6105+
6106+SB3476 Enrolled- 171 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 171 - LRB103 34190 HLH 64013 b
6107+ SB3476 Enrolled - 171 - LRB103 34190 HLH 64013 b
6108+1 Protection Act. This paragraph is exempt from the
6109+2 provisions of Section 2-70.
6110+3 (40) Beginning January 1, 2010 and continuing through
6111+4 December 31, 2029, materials, parts, equipment,
6112+5 components, and furnishings incorporated into or upon an
6113+6 aircraft as part of the modification, refurbishment,
6114+7 completion, replacement, repair, or maintenance of the
6115+8 aircraft. This exemption includes consumable supplies used
6116+9 in the modification, refurbishment, completion,
6117+10 replacement, repair, and maintenance of aircraft. However,
6118+11 until January 1, 2024, this exemption excludes any
6119+12 materials, parts, equipment, components, and consumable
6120+13 supplies used in the modification, replacement, repair,
6121+14 and maintenance of aircraft engines or power plants,
6122+15 whether such engines or power plants are installed or
6123+16 uninstalled upon any such aircraft. "Consumable supplies"
6124+17 include, but are not limited to, adhesive, tape,
6125+18 sandpaper, general purpose lubricants, cleaning solution,
6126+19 latex gloves, and protective films.
6127+20 Beginning January 1, 2010 and continuing through
6128+21 December 31, 2023, this exemption applies only to the sale
6129+22 of qualifying tangible personal property to persons who
6130+23 modify, refurbish, complete, replace, or maintain an
6131+24 aircraft and who (i) hold an Air Agency Certificate and
6132+25 are empowered to operate an approved repair station by the
6133+26 Federal Aviation Administration, (ii) have a Class IV
6134+
6135+
6136+
6137+
6138+
6139+ SB3476 Enrolled - 171 - LRB103 34190 HLH 64013 b
6140+
6141+
6142+SB3476 Enrolled- 172 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 172 - LRB103 34190 HLH 64013 b
6143+ SB3476 Enrolled - 172 - LRB103 34190 HLH 64013 b
6144+1 Rating, and (iii) conduct operations in accordance with
6145+2 Part 145 of the Federal Aviation Regulations. The
6146+3 exemption does not include aircraft operated by a
6147+4 commercial air carrier providing scheduled passenger air
6148+5 service pursuant to authority issued under Part 121 or
6149+6 Part 129 of the Federal Aviation Regulations. From January
6150+7 1, 2024 through December 31, 2029, this exemption applies
6151+8 only to the use of qualifying tangible personal property
6152+9 by: (A) persons who modify, refurbish, complete, repair,
6153+10 replace, or maintain aircraft and who (i) hold an Air
6154+11 Agency Certificate and are empowered to operate an
6155+12 approved repair station by the Federal Aviation
6156+13 Administration, (ii) have a Class IV Rating, and (iii)
6157+14 conduct operations in accordance with Part 145 of the
6158+15 Federal Aviation Regulations; and (B) persons who engage
6159+16 in the modification, replacement, repair, and maintenance
6160+17 of aircraft engines or power plants without regard to
6161+18 whether or not those persons meet the qualifications of
6162+19 item (A).
6163+20 The changes made to this paragraph (40) by Public Act
6164+21 98-534 are declarative of existing law. It is the intent
6165+22 of the General Assembly that the exemption under this
6166+23 paragraph (40) applies continuously from January 1, 2010
6167+24 through December 31, 2024; however, no claim for credit or
6168+25 refund is allowed for taxes paid as a result of the
6169+26 disallowance of this exemption on or after January 1, 2015
6170+
6171+
6172+
6173+
6174+
6175+ SB3476 Enrolled - 172 - LRB103 34190 HLH 64013 b
6176+
6177+
6178+SB3476 Enrolled- 173 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 173 - LRB103 34190 HLH 64013 b
6179+ SB3476 Enrolled - 173 - LRB103 34190 HLH 64013 b
6180+1 and prior to February 5, 2020 (the effective date of
6181+2 Public Act 101-629).
6182+3 (41) Tangible personal property sold to a
6183+4 public-facilities corporation, as described in Section
6184+5 11-65-10 of the Illinois Municipal Code, for purposes of
6185+6 constructing or furnishing a municipal convention hall,
6186+7 but only if the legal title to the municipal convention
6187+8 hall is transferred to the municipality without any
6188+9 further consideration by or on behalf of the municipality
6189+10 at the time of the completion of the municipal convention
6190+11 hall or upon the retirement or redemption of any bonds or
6191+12 other debt instruments issued by the public-facilities
6192+13 corporation in connection with the development of the
6193+14 municipal convention hall. This exemption includes
6194+15 existing public-facilities corporations as provided in
6195+16 Section 11-65-25 of the Illinois Municipal Code. This
6196+17 paragraph is exempt from the provisions of Section 2-70.
6197+18 (42) Beginning January 1, 2017 and through December
6198+19 31, 2026, menstrual pads, tampons, and menstrual cups.
6199+20 (43) Merchandise that is subject to the Rental
6200+21 Purchase Agreement Occupation and Use Tax. The purchaser
6201+22 must certify that the item is purchased to be rented
6202+23 subject to a rental-purchase rental purchase agreement, as
6203+24 defined in the Rental-Purchase Rental Purchase Agreement
6204+25 Act, and provide proof of registration under the Rental
6205+26 Purchase Agreement Occupation and Use Tax Act. This
6206+
6207+
6208+
6209+
6210+
6211+ SB3476 Enrolled - 173 - LRB103 34190 HLH 64013 b
6212+
6213+
6214+SB3476 Enrolled- 174 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 174 - LRB103 34190 HLH 64013 b
6215+ SB3476 Enrolled - 174 - LRB103 34190 HLH 64013 b
6216+1 paragraph is exempt from the provisions of Section 2-70.
6217+2 (44) Qualified tangible personal property used in the
6218+3 construction or operation of a data center that has been
6219+4 granted a certificate of exemption by the Department of
6220+5 Commerce and Economic Opportunity, whether that tangible
6221+6 personal property is purchased by the owner, operator, or
6222+7 tenant of the data center or by a contractor or
6223+8 subcontractor of the owner, operator, or tenant. Data
6224+9 centers that would have qualified for a certificate of
6225+10 exemption prior to January 1, 2020 had Public Act 101-31
6226+11 been in effect, may apply for and obtain an exemption for
6227+12 subsequent purchases of computer equipment or enabling
6228+13 software purchased or leased to upgrade, supplement, or
6229+14 replace computer equipment or enabling software purchased
6230+15 or leased in the original investment that would have
6231+16 qualified.
6232+17 The Department of Commerce and Economic Opportunity
6233+18 shall grant a certificate of exemption under this item
6234+19 (44) to qualified data centers as defined by Section
6235+20 605-1025 of the Department of Commerce and Economic
6236+21 Opportunity Law of the Civil Administrative Code of
6237+22 Illinois.
6238+23 For the purposes of this item (44):
6239+24 "Data center" means a building or a series of
6240+25 buildings rehabilitated or constructed to house
6241+26 working servers in one physical location or multiple
6242+
6243+
6244+
6245+
6246+
6247+ SB3476 Enrolled - 174 - LRB103 34190 HLH 64013 b
6248+
6249+
6250+SB3476 Enrolled- 175 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 175 - LRB103 34190 HLH 64013 b
6251+ SB3476 Enrolled - 175 - LRB103 34190 HLH 64013 b
6252+1 sites within the State of Illinois.
6253+2 "Qualified tangible personal property" means:
6254+3 electrical systems and equipment; climate control and
6255+4 chilling equipment and systems; mechanical systems and
6256+5 equipment; monitoring and secure systems; emergency
6257+6 generators; hardware; computers; servers; data storage
6258+7 devices; network connectivity equipment; racks;
6259+8 cabinets; telecommunications cabling infrastructure;
6260+9 raised floor systems; peripheral components or
6261+10 systems; software; mechanical, electrical, or plumbing
6262+11 systems; battery systems; cooling systems and towers;
6263+12 temperature control systems; other cabling; and other
6264+13 data center infrastructure equipment and systems
6265+14 necessary to operate qualified tangible personal
6266+15 property, including fixtures; and component parts of
6267+16 any of the foregoing, including installation,
6268+17 maintenance, repair, refurbishment, and replacement of
6269+18 qualified tangible personal property to generate,
6270+19 transform, transmit, distribute, or manage electricity
6271+20 necessary to operate qualified tangible personal
6272+21 property; and all other tangible personal property
6273+22 that is essential to the operations of a computer data
6274+23 center. The term "qualified tangible personal
6275+24 property" also includes building materials physically
6276+25 incorporated into the qualifying data center. To
6277+26 document the exemption allowed under this Section, the
6278+
6279+
6280+
6281+
6282+
6283+ SB3476 Enrolled - 175 - LRB103 34190 HLH 64013 b
6284+
6285+
6286+SB3476 Enrolled- 176 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 176 - LRB103 34190 HLH 64013 b
6287+ SB3476 Enrolled - 176 - LRB103 34190 HLH 64013 b
6288+1 retailer must obtain from the purchaser a copy of the
6289+2 certificate of eligibility issued by the Department of
6290+3 Commerce and Economic Opportunity.
6291+4 This item (44) is exempt from the provisions of
6292+5 Section 2-70.
6293+6 (45) Beginning January 1, 2020 and through December
6294+7 31, 2020, sales of tangible personal property made by a
6295+8 marketplace seller over a marketplace for which tax is due
6296+9 under this Act but for which use tax has been collected and
6297+10 remitted to the Department by a marketplace facilitator
6298+11 under Section 2d of the Use Tax Act are exempt from tax
6299+12 under this Act. A marketplace seller claiming this
6300+13 exemption shall maintain books and records demonstrating
6301+14 that the use tax on such sales has been collected and
6302+15 remitted by a marketplace facilitator. Marketplace sellers
6303+16 that have properly remitted tax under this Act on such
6304+17 sales may file a claim for credit as provided in Section 6
6305+18 of this Act. No claim is allowed, however, for such taxes
6306+19 for which a credit or refund has been issued to the
6307+20 marketplace facilitator under the Use Tax Act, or for
6308+21 which the marketplace facilitator has filed a claim for
6309+22 credit or refund under the Use Tax Act.
6310+23 (46) Beginning July 1, 2022, breast pumps, breast pump
6311+24 collection and storage supplies, and breast pump kits.
6312+25 This item (46) is exempt from the provisions of Section
6313+26 2-70. As used in this item (46):
6314+
6315+
6316+
6317+
6318+
6319+ SB3476 Enrolled - 176 - LRB103 34190 HLH 64013 b
6320+
6321+
6322+SB3476 Enrolled- 177 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 177 - LRB103 34190 HLH 64013 b
6323+ SB3476 Enrolled - 177 - LRB103 34190 HLH 64013 b
6324+1 "Breast pump" means an electrically controlled or
6325+2 manually controlled pump device designed or marketed to be
6326+3 used to express milk from a human breast during lactation,
6327+4 including the pump device and any battery, AC adapter, or
6328+5 other power supply unit that is used to power the pump
6329+6 device and is packaged and sold with the pump device at the
6330+7 time of sale.
6331+8 "Breast pump collection and storage supplies" means
6332+9 items of tangible personal property designed or marketed
6333+10 to be used in conjunction with a breast pump to collect
6334+11 milk expressed from a human breast and to store collected
6335+12 milk until it is ready for consumption.
6336+13 "Breast pump collection and storage supplies"
6337+14 includes, but is not limited to: breast shields and breast
6338+15 shield connectors; breast pump tubes and tubing adapters;
6339+16 breast pump valves and membranes; backflow protectors and
6340+17 backflow protector adaptors; bottles and bottle caps
6341+18 specific to the operation of the breast pump; and breast
6342+19 milk storage bags.
6343+20 "Breast pump collection and storage supplies" does not
6344+21 include: (1) bottles and bottle caps not specific to the
6345+22 operation of the breast pump; (2) breast pump travel bags
6346+23 and other similar carrying accessories, including ice
6347+24 packs, labels, and other similar products; (3) breast pump
6348+25 cleaning supplies; (4) nursing bras, bra pads, breast
6349+26 shells, and other similar products; and (5) creams,
6350+
6351+
6352+
6353+
6354+
6355+ SB3476 Enrolled - 177 - LRB103 34190 HLH 64013 b
6356+
6357+
6358+SB3476 Enrolled- 178 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 178 - LRB103 34190 HLH 64013 b
6359+ SB3476 Enrolled - 178 - LRB103 34190 HLH 64013 b
6360+1 ointments, and other similar products that relieve
6361+2 breastfeeding-related symptoms or conditions of the
6362+3 breasts or nipples, unless sold as part of a breast pump
6363+4 kit that is pre-packaged by the breast pump manufacturer
6364+5 or distributor.
6365+6 "Breast pump kit" means a kit that: (1) contains no
6366+7 more than a breast pump, breast pump collection and
6367+8 storage supplies, a rechargeable battery for operating the
6368+9 breast pump, a breastmilk cooler, bottle stands, ice
6369+10 packs, and a breast pump carrying case; and (2) is
6370+11 pre-packaged as a breast pump kit by the breast pump
6371+12 manufacturer or distributor.
6372+13 (47) Tangible personal property sold by or on behalf
6373+14 of the State Treasurer pursuant to the Revised Uniform
6374+15 Unclaimed Property Act. This item (47) is exempt from the
6375+16 provisions of Section 2-70.
6376+17 (48) Beginning on January 1, 2024, tangible personal
6377+18 property purchased by an active duty member of the armed
6378+19 forces of the United States who presents valid military
6379+20 identification and purchases the property using a form of
6380+21 payment where the federal government is the payor. The
6381+22 member of the armed forces must complete, at the point of
6382+23 sale, a form prescribed by the Department of Revenue
6383+24 documenting that the transaction is eligible for the
6384+25 exemption under this paragraph. Retailers must keep the
6385+26 form as documentation of the exemption in their records
6386+
6387+
6388+
6389+
6390+
6391+ SB3476 Enrolled - 178 - LRB103 34190 HLH 64013 b
6392+
6393+
6394+SB3476 Enrolled- 179 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 179 - LRB103 34190 HLH 64013 b
6395+ SB3476 Enrolled - 179 - LRB103 34190 HLH 64013 b
6396+1 for a period of not less than 6 years. "Armed forces of the
6397+2 United States" means the United States Army, Navy, Air
6398+3 Force, Marine Corps, or Coast Guard. This paragraph is
6399+4 exempt from the provisions of Section 2-70.
6400+5 (49) Beginning July 1, 2024, home-delivered meals
6401+6 provided to Medicare or Medicaid recipients when payment
6402+7 is made by an intermediary, such as a Medicare
6403+8 Administrative Contractor, a Managed Care Organization, or
6404+9 a Medicare Advantage Organization, pursuant to a
6405+10 government contract. This paragraph (49) is exempt from
6406+11 the provisions of Section 2-70.
6407+12 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
6408+13 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
6409+14 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
6410+15 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
6411+16 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
6412+17 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
6413+18 9-26-23.)
6414+19 Section 95. No acceleration or delay. Where this Act makes
6415+20 changes in a statute that is represented in this Act by text
6416+21 that is not yet or no longer in effect (for example, a Section
6417+22 represented by multiple versions), the use of that text does
6418+23 not accelerate or delay the taking effect of (i) the changes
6419+24 made by this Act or (ii) provisions derived from any other
6420+25 Public Act.
6421+
6422+
6423+
6424+
6425+
6426+ SB3476 Enrolled - 179 - LRB103 34190 HLH 64013 b
6427+
6428+
6429+SB3476 Enrolled- 180 -LRB103 34190 HLH 64013 b SB3476 Enrolled - 180 - LRB103 34190 HLH 64013 b
6430+ SB3476 Enrolled - 180 - LRB103 34190 HLH 64013 b
6431+
6432+
6433+
6434+
6435+
6436+ SB3476 Enrolled - 180 - LRB103 34190 HLH 64013 b