Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0133 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0133 Introduced 1/17/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Vehicle Use Tax Article of the Illinois Vehicle Code. Provides that the taxes under those Acts do not apply to a motor vehicle that is registered in the State to an Illinois resident who acquired the vehicle while the Illinois resident was stationed outside of this State as an active duty member of the military. LRB104 03841 HLH 13865 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0133 Introduced 1/17/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Vehicle Use Tax Article of the Illinois Vehicle Code. Provides that the taxes under those Acts do not apply to a motor vehicle that is registered in the State to an Illinois resident who acquired the vehicle while the Illinois resident was stationed outside of this State as an active duty member of the military. LRB104 03841 HLH 13865 b LRB104 03841 HLH 13865 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0133 Introduced 1/17/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
4	4	35 ILCS 105/3-5
5	5	35 ILCS 110/3-5
6	6	35 ILCS 115/3-5
7	7	35 ILCS 120/2-5
8	8	625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
9	9	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Vehicle Use Tax Article of the Illinois Vehicle Code. Provides that the taxes under those Acts do not apply to a motor vehicle that is registered in the State to an Illinois resident who acquired the vehicle while the Illinois resident was stationed outside of this State as an active duty member of the military.
10	10	LRB104 03841 HLH 13865 b LRB104 03841 HLH 13865 b
11	11	LRB104 03841 HLH 13865 b
12	12	A BILL FOR
13	13	SB0133LRB104 03841 HLH 13865 b SB0133 LRB104 03841 HLH 13865 b
14	14	SB0133 LRB104 03841 HLH 13865 b
15	15	1 AN ACT concerning revenue.
16	16	2 Be it enacted by the People of the State of Illinois,
17	17	3 represented in the General Assembly:
18	18	4 Section 5. The Use Tax Act is amended by changing Section
19	19	5 3-5 as follows:
20	20	6 (35 ILCS 105/3-5)
21	21	7 Sec. 3-5. Exemptions. Use, which, on and after January 1,
22	22	8 2025, includes use by a lessee, of the following tangible
23	23	9 personal property is exempt from the tax imposed by this Act:
24	24	10 (1) Personal property purchased from a corporation,
25	25	11 society, association, foundation, institution, or
26	26	12 organization, other than a limited liability company, that is
27	27	13 organized and operated as a not-for-profit service enterprise
28	28	14 for the benefit of persons 65 years of age or older if the
29	29	15 personal property was not purchased by the enterprise for the
30	30	16 purpose of resale by the enterprise.
31	31	17 (2) Personal property purchased by a not-for-profit
32	32	18 Illinois county fair association for use in conducting,
33	33	19 operating, or promoting the county fair.
34	34	20 (3) Personal property purchased by a not-for-profit arts
35	35	21 or cultural organization that establishes, by proof required
36	36	22 by the Department by rule, that it has received an exemption
37	37	23 under Section 501(c)(3) of the Internal Revenue Code and that
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41	41	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0133 Introduced 1/17/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
42	42	35 ILCS 105/3-535 ILCS 110/3-535 ILCS 115/3-535 ILCS 120/2-5625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
43	43	35 ILCS 105/3-5
44	44	35 ILCS 110/3-5
45	45	35 ILCS 115/3-5
46	46	35 ILCS 120/2-5
47	47	625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
48	48	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Vehicle Use Tax Article of the Illinois Vehicle Code. Provides that the taxes under those Acts do not apply to a motor vehicle that is registered in the State to an Illinois resident who acquired the vehicle while the Illinois resident was stationed outside of this State as an active duty member of the military.
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50	50	LRB104 03841 HLH 13865 b
51	51	A BILL FOR
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57	57	35 ILCS 105/3-5
58	58	35 ILCS 110/3-5
59	59	35 ILCS 115/3-5
60	60	35 ILCS 120/2-5
61	61	625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
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80	80	1 is organized and operated primarily for the presentation or
81	81	2 support of arts or cultural programming, activities, or
82	82	3 services. These organizations include, but are not limited to,
83	83	4 music and dramatic arts organizations such as symphony
84	84	5 orchestras and theatrical groups, arts and cultural service
85	85	6 organizations, local arts councils, visual arts organizations,
86	86	7 and media arts organizations. On and after July 1, 2001 (the
87	87	8 effective date of Public Act 92-35), however, an entity
88	88	9 otherwise eligible for this exemption shall not make tax-free
89	89	10 purchases unless it has an active identification number issued
90	90	11 by the Department.
91	91	12 (4) Except as otherwise provided in this Act, personal
92	92	13 property purchased by a governmental body, by a corporation,
93	93	14 society, association, foundation, or institution organized and
94	94	15 operated exclusively for charitable, religious, or educational
95	95	16 purposes, or by a not-for-profit corporation, society,
96	96	17 association, foundation, institution, or organization that has
97	97	18 no compensated officers or employees and that is organized and
98	98	19 operated primarily for the recreation of persons 55 years of
99	99	20 age or older. A limited liability company may qualify for the
100	100	21 exemption under this paragraph only if the limited liability
101	101	22 company is organized and operated exclusively for educational
102	102	23 purposes. On and after July 1, 1987, however, no entity
103	103	24 otherwise eligible for this exemption shall make tax-free
104	104	25 purchases unless it has an active exemption identification
105	105	26 number issued by the Department.
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116	116	1 (5) Until July 1, 2003, a passenger car that is a
117	117	2 replacement vehicle to the extent that the purchase price of
118	118	3 the car is subject to the Replacement Vehicle Tax.
119	119	4 (6) Until July 1, 2003 and beginning again on September 1,
120	120	5 2004 through August 30, 2014, graphic arts machinery and
121	121	6 equipment, including repair and replacement parts, both new
122	122	7 and used, and including that manufactured on special order,
123	123	8 certified by the purchaser to be used primarily for graphic
124	124	9 arts production, and including machinery and equipment
125	125	10 purchased for lease. Equipment includes chemicals or chemicals
126	126	11 acting as catalysts but only if the chemicals or chemicals
127	127	12 acting as catalysts effect a direct and immediate change upon
128	128	13 a graphic arts product. Beginning on July 1, 2017, graphic
129	129	14 arts machinery and equipment is included in the manufacturing
130	130	15 and assembling machinery and equipment exemption under
131	131	16 paragraph (18).
132	132	17 (7) Farm chemicals.
133	133	18 (8) Legal tender, currency, medallions, or gold or silver
134	134	19 coinage issued by the State of Illinois, the government of the
135	135	20 United States of America, or the government of any foreign
136	136	21 country, and bullion.
137	137	22 (9) Personal property purchased from a teacher-sponsored
138	138	23 student organization affiliated with an elementary or
139	139	24 secondary school located in Illinois.
140	140	25 (10) A motor vehicle that is used for automobile renting,
141	141	26 as defined in the Automobile Renting Occupation and Use Tax
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152	152	1 Act.
153	153	2 (11) Farm machinery and equipment, both new and used,
154	154	3 including that manufactured on special order, certified by the
155	155	4 purchaser to be used primarily for production agriculture or
156	156	5 State or federal agricultural programs, including individual
157	157	6 replacement parts for the machinery and equipment, including
158	158	7 machinery and equipment purchased for lease, and including
159	159	8 implements of husbandry defined in Section 1-130 of the
160	160	9 Illinois Vehicle Code, farm machinery and agricultural
161	161	10 chemical and fertilizer spreaders, and nurse wagons required
162	162	11 to be registered under Section 3-809 of the Illinois Vehicle
163	163	12 Code, but excluding other motor vehicles required to be
164	164	13 registered under the Illinois Vehicle Code. Horticultural
165	165	14 polyhouses or hoop houses used for propagating, growing, or
166	166	15 overwintering plants shall be considered farm machinery and
167	167	16 equipment under this item (11). Agricultural chemical tender
168	168	17 tanks and dry boxes shall include units sold separately from a
169	169	18 motor vehicle required to be licensed and units sold mounted
170	170	19 on a motor vehicle required to be licensed if the selling price
171	171	20 of the tender is separately stated.
172	172	21 Farm machinery and equipment shall include precision
173	173	22 farming equipment that is installed or purchased to be
174	174	23 installed on farm machinery and equipment, including, but not
175	175	24 limited to, tractors, harvesters, sprayers, planters, seeders,
176	176	25 or spreaders. Precision farming equipment includes, but is not
177	177	26 limited to, soil testing sensors, computers, monitors,
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188	188	1 software, global positioning and mapping systems, and other
189	189	2 such equipment.
190	190	3 Farm machinery and equipment also includes computers,
191	191	4 sensors, software, and related equipment used primarily in the
192	192	5 computer-assisted operation of production agriculture
193	193	6 facilities, equipment, and activities such as, but not limited
194	194	7 to, the collection, monitoring, and correlation of animal and
195	195	8 crop data for the purpose of formulating animal diets and
196	196	9 agricultural chemicals.
197	197	10 Beginning on January 1, 2024, farm machinery and equipment
198	198	11 also includes electrical power generation equipment used
199	199	12 primarily for production agriculture.
200	200	13 This item (11) is exempt from the provisions of Section
201	201	14 3-90.
202	202	15 (12) Until June 30, 2013, fuel and petroleum products sold
203	203	16 to or used by an air common carrier, certified by the carrier
204	204	17 to be used for consumption, shipment, or storage in the
205	205	18 conduct of its business as an air common carrier, for a flight
206	206	19 destined for or returning from a location or locations outside
207	207	20 the United States without regard to previous or subsequent
208	208	21 domestic stopovers.
209	209	22 Beginning July 1, 2013, fuel and petroleum products sold
210	210	23 to or used by an air carrier, certified by the carrier to be
211	211	24 used for consumption, shipment, or storage in the conduct of
212	212	25 its business as an air common carrier, for a flight that (i) is
213	213	26 engaged in foreign trade or is engaged in trade between the
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224	224	1 United States and any of its possessions and (ii) transports
225	225	2 at least one individual or package for hire from the city of
226	226	3 origination to the city of final destination on the same
227	227	4 aircraft, without regard to a change in the flight number of
228	228	5 that aircraft.
229	229	6 (13) Proceeds of mandatory service charges separately
230	230	7 stated on customers' bills for the purchase and consumption of
231	231	8 food and beverages purchased at retail from a retailer, to the
232	232	9 extent that the proceeds of the service charge are in fact
233	233	10 turned over as tips or as a substitute for tips to the
234	234	11 employees who participate directly in preparing, serving,
235	235	12 hosting or cleaning up the food or beverage function with
236	236	13 respect to which the service charge is imposed.
237	237	14 (14) Until July 1, 2003, oil field exploration, drilling,
238	238	15 and production equipment, including (i) rigs and parts of
239	239	16 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
240	240	17 pipe and tubular goods, including casing and drill strings,
241	241	18 (iii) pumps and pump-jack units, (iv) storage tanks and flow
242	242	19 lines, (v) any individual replacement part for oil field
243	243	20 exploration, drilling, and production equipment, and (vi)
244	244	21 machinery and equipment purchased for lease; but excluding
245	245	22 motor vehicles required to be registered under the Illinois
246	246	23 Vehicle Code.
247	247	24 (15) Photoprocessing machinery and equipment, including
248	248	25 repair and replacement parts, both new and used, including
249	249	26 that manufactured on special order, certified by the purchaser
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260	260	1 to be used primarily for photoprocessing, and including
261	261	2 photoprocessing machinery and equipment purchased for lease.
262	262	3 (16) Until July 1, 2028, coal and aggregate exploration,
263	263	4 mining, off-highway hauling, processing, maintenance, and
264	264	5 reclamation equipment, including replacement parts and
265	265	6 equipment, and including equipment purchased for lease, but
266	266	7 excluding motor vehicles required to be registered under the
267	267	8 Illinois Vehicle Code. The changes made to this Section by
268	268	9 Public Act 97-767 apply on and after July 1, 2003, but no claim
269	269	10 for credit or refund is allowed on or after August 16, 2013
270	270	11 (the effective date of Public Act 98-456) for such taxes paid
271	271	12 during the period beginning July 1, 2003 and ending on August
272	272	13 16, 2013 (the effective date of Public Act 98-456).
273	273	14 (17) Until July 1, 2003, distillation machinery and
274	274	15 equipment, sold as a unit or kit, assembled or installed by the
275	275	16 retailer, certified by the user to be used only for the
276	276	17 production of ethyl alcohol that will be used for consumption
277	277	18 as motor fuel or as a component of motor fuel for the personal
278	278	19 use of the user, and not subject to sale or resale.
279	279	20 (18) Manufacturing and assembling machinery and equipment
280	280	21 used primarily in the process of manufacturing or assembling
281	281	22 tangible personal property for wholesale or retail sale or
282	282	23 lease, whether that sale or lease is made directly by the
283	283	24 manufacturer or by some other person, whether the materials
284	284	25 used in the process are owned by the manufacturer or some other
285	285	26 person, or whether that sale or lease is made apart from or as
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296	296	1 an incident to the seller's engaging in the service occupation
297	297	2 of producing machines, tools, dies, jigs, patterns, gauges, or
298	298	3 other similar items of no commercial value on special order
299	299	4 for a particular purchaser. The exemption provided by this
300	300	5 paragraph (18) includes production related tangible personal
301	301	6 property, as defined in Section 3-50, purchased on or after
302	302	7 July 1, 2019. The exemption provided by this paragraph (18)
303	303	8 does not include machinery and equipment used in (i) the
304	304	9 generation of electricity for wholesale or retail sale; (ii)
305	305	10 the generation or treatment of natural or artificial gas for
306	306	11 wholesale or retail sale that is delivered to customers
307	307	12 through pipes, pipelines, or mains; or (iii) the treatment of
308	308	13 water for wholesale or retail sale that is delivered to
309	309	14 customers through pipes, pipelines, or mains. The provisions
310	310	15 of Public Act 98-583 are declaratory of existing law as to the
311	311	16 meaning and scope of this exemption. Beginning on July 1,
312	312	17 2017, the exemption provided by this paragraph (18) includes,
313	313	18 but is not limited to, graphic arts machinery and equipment,
314	314	19 as defined in paragraph (6) of this Section.
315	315	20 (19) Personal property delivered to a purchaser or
316	316	21 purchaser's donee inside Illinois when the purchase order for
317	317	22 that personal property was received by a florist located
318	318	23 outside Illinois who has a florist located inside Illinois
319	319	24 deliver the personal property.
320	320	25 (20) Semen used for artificial insemination of livestock
321	321	26 for direct agricultural production.
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332	332	1 (21) Horses, or interests in horses, registered with and
333	333	2 meeting the requirements of any of the Arabian Horse Club
334	334	3 Registry of America, Appaloosa Horse Club, American Quarter
335	335	4 Horse Association, United States Trotting Association, or
336	336	5 Jockey Club, as appropriate, used for purposes of breeding or
337	337	6 racing for prizes. This item (21) is exempt from the
338	338	7 provisions of Section 3-90, and the exemption provided for
339	339	8 under this item (21) applies for all periods beginning May 30,
340	340	9 1995, but no claim for credit or refund is allowed on or after
341	341	10 January 1, 2008 for such taxes paid during the period
342	342	11 beginning May 30, 2000 and ending on January 1, 2008.
343	343	12 (22) Computers and communications equipment utilized for
344	344	13 any hospital purpose and equipment used in the diagnosis,
345	345	14 analysis, or treatment of hospital patients purchased by a
346	346	15 lessor who leases the equipment, under a lease of one year or
347	347	16 longer executed or in effect at the time the lessor would
348	348	17 otherwise be subject to the tax imposed by this Act, to a
349	349	18 hospital that has been issued an active tax exemption
350	350	19 identification number by the Department under Section 1g of
351	351	20 the Retailers' Occupation Tax Act. If the equipment is leased
352	352	21 in a manner that does not qualify for this exemption or is used
353	353	22 in any other non-exempt manner, the lessor shall be liable for
354	354	23 the tax imposed under this Act or the Service Use Tax Act, as
355	355	24 the case may be, based on the fair market value of the property
356	356	25 at the time the non-qualifying use occurs. No lessor shall
357	357	26 collect or attempt to collect an amount (however designated)
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368	368	1 that purports to reimburse that lessor for the tax imposed by
369	369	2 this Act or the Service Use Tax Act, as the case may be, if the
370	370	3 tax has not been paid by the lessor. If a lessor improperly
371	371	4 collects any such amount from the lessee, the lessee shall
372	372	5 have a legal right to claim a refund of that amount from the
373	373	6 lessor. If, however, that amount is not refunded to the lessee
374	374	7 for any reason, the lessor is liable to pay that amount to the
375	375	8 Department.
376	376	9 (23) Personal property purchased by a lessor who leases
377	377	10 the property, under a lease of one year or longer executed or
378	378	11 in effect at the time the lessor would otherwise be subject to
379	379	12 the tax imposed by this Act, to a governmental body that has
380	380	13 been issued an active sales tax exemption identification
381	381	14 number by the Department under Section 1g of the Retailers'
382	382	15 Occupation Tax Act. If the property is leased in a manner that
383	383	16 does not qualify for this exemption or used in any other
384	384	17 non-exempt manner, the lessor shall be liable for the tax
385	385	18 imposed under this Act or the Service Use Tax Act, as the case
386	386	19 may be, based on the fair market value of the property at the
387	387	20 time the non-qualifying use occurs. No lessor shall collect or
388	388	21 attempt to collect an amount (however designated) that
389	389	22 purports to reimburse that lessor for the tax imposed by this
390	390	23 Act or the Service Use Tax Act, as the case may be, if the tax
391	391	24 has not been paid by the lessor. If a lessor improperly
392	392	25 collects any such amount from the lessee, the lessee shall
393	393	26 have a legal right to claim a refund of that amount from the
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404	404	1 lessor. If, however, that amount is not refunded to the lessee
405	405	2 for any reason, the lessor is liable to pay that amount to the
406	406	3 Department.
407	407	4 (24) Beginning with taxable years ending on or after
408	408	5 December 31, 1995 and ending with taxable years ending on or
409	409	6 before December 31, 2004, personal property that is donated
410	410	7 for disaster relief to be used in a State or federally declared
411	411	8 disaster area in Illinois or bordering Illinois by a
412	412	9 manufacturer or retailer that is registered in this State to a
413	413	10 corporation, society, association, foundation, or institution
414	414	11 that has been issued a sales tax exemption identification
415	415	12 number by the Department that assists victims of the disaster
416	416	13 who reside within the declared disaster area.
417	417	14 (25) Beginning with taxable years ending on or after
418	418	15 December 31, 1995 and ending with taxable years ending on or
419	419	16 before December 31, 2004, personal property that is used in
420	420	17 the performance of infrastructure repairs in this State,
421	421	18 including, but not limited to, municipal roads and streets,
422	422	19 access roads, bridges, sidewalks, waste disposal systems,
423	423	20 water and sewer line extensions, water distribution and
424	424	21 purification facilities, storm water drainage and retention
425	425	22 facilities, and sewage treatment facilities, resulting from a
426	426	23 State or federally declared disaster in Illinois or bordering
427	427	24 Illinois when such repairs are initiated on facilities located
428	428	25 in the declared disaster area within 6 months after the
429	429	26 disaster.
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440	440	1 (26) Beginning July 1, 1999, game or game birds purchased
441	441	2 at a "game breeding and hunting preserve area" as that term is
442	442	3 used in the Wildlife Code. This paragraph is exempt from the
443	443	4 provisions of Section 3-90.
444	444	5 (27) A motor vehicle, as that term is defined in Section
445	445	6 1-146 of the Illinois Vehicle Code, that is donated to a
446	446	7 corporation, limited liability company, society, association,
447	447	8 foundation, or institution that is determined by the
448	448	9 Department to be organized and operated exclusively for
449	449	10 educational purposes. For purposes of this exemption, "a
450	450	11 corporation, limited liability company, society, association,
451	451	12 foundation, or institution organized and operated exclusively
452	452	13 for educational purposes" means all tax-supported public
453	453	14 schools, private schools that offer systematic instruction in
454	454	15 useful branches of learning by methods common to public
455	455	16 schools and that compare favorably in their scope and
456	456	17 intensity with the course of study presented in tax-supported
457	457	18 schools, and vocational or technical schools or institutes
458	458	19 organized and operated exclusively to provide a course of
459	459	20 study of not less than 6 weeks duration and designed to prepare
460	460	21 individuals to follow a trade or to pursue a manual,
461	461	22 technical, mechanical, industrial, business, or commercial
462	462	23 occupation.
463	463	24 (28) Beginning January 1, 2000, personal property,
464	464	25 including food, purchased through fundraising events for the
465	465	26 benefit of a public or private elementary or secondary school,
466	466
467	467
468	468
469	469
470	470
471	471	SB0133 - 12 - LRB104 03841 HLH 13865 b
472	472
473	473
474	474	SB0133- 13 -LRB104 03841 HLH 13865 b SB0133 - 13 - LRB104 03841 HLH 13865 b
475	475	SB0133 - 13 - LRB104 03841 HLH 13865 b
476	476	1 a group of those schools, or one or more school districts if
477	477	2 the events are sponsored by an entity recognized by the school
478	478	3 district that consists primarily of volunteers and includes
479	479	4 parents and teachers of the school children. This paragraph
480	480	5 does not apply to fundraising events (i) for the benefit of
481	481	6 private home instruction or (ii) for which the fundraising
482	482	7 entity purchases the personal property sold at the events from
483	483	8 another individual or entity that sold the property for the
484	484	9 purpose of resale by the fundraising entity and that profits
485	485	10 from the sale to the fundraising entity. This paragraph is
486	486	11 exempt from the provisions of Section 3-90.
487	487	12 (29) Beginning January 1, 2000 and through December 31,
488	488	13 2001, new or used automatic vending machines that prepare and
489	489	14 serve hot food and beverages, including coffee, soup, and
490	490	15 other items, and replacement parts for these machines.
491	491	16 Beginning January 1, 2002 and through June 30, 2003, machines
492	492	17 and parts for machines used in commercial, coin-operated
493	493	18 amusement and vending business if a use or occupation tax is
494	494	19 paid on the gross receipts derived from the use of the
495	495	20 commercial, coin-operated amusement and vending machines. This
496	496	21 paragraph is exempt from the provisions of Section 3-90.
497	497	22 (30) Beginning January 1, 2001 and through June 30, 2016,
498	498	23 food for human consumption that is to be consumed off the
499	499	24 premises where it is sold (other than alcoholic beverages,
500	500	25 soft drinks, and food that has been prepared for immediate
501	501	26 consumption) and prescription and nonprescription medicines,
502	502
503	503
504	504
505	505
506	506
507	507	SB0133 - 13 - LRB104 03841 HLH 13865 b
508	508
509	509
510	510	SB0133- 14 -LRB104 03841 HLH 13865 b SB0133 - 14 - LRB104 03841 HLH 13865 b
511	511	SB0133 - 14 - LRB104 03841 HLH 13865 b
512	512	1 drugs, medical appliances, and insulin, urine testing
513	513	2 materials, syringes, and needles used by diabetics, for human
514	514	3 use, when purchased for use by a person receiving medical
515	515	4 assistance under Article V of the Illinois Public Aid Code who
516	516	5 resides in a licensed long-term care facility, as defined in
517	517	6 the Nursing Home Care Act, or in a licensed facility as defined
518	518	7 in the ID/DD Community Care Act, the MC/DD Act, or the
519	519	8 Specialized Mental Health Rehabilitation Act of 2013.
520	520	9 (31) Beginning on August 2, 2001 (the effective date of
521	521	10 Public Act 92-227), computers and communications equipment
522	522	11 utilized for any hospital purpose and equipment used in the
523	523	12 diagnosis, analysis, or treatment of hospital patients
524	524	13 purchased by a lessor who leases the equipment, under a lease
525	525	14 of one year or longer executed or in effect at the time the
526	526	15 lessor would otherwise be subject to the tax imposed by this
527	527	16 Act, to a hospital that has been issued an active tax exemption
528	528	17 identification number by the Department under Section 1g of
529	529	18 the Retailers' Occupation Tax Act. If the equipment is leased
530	530	19 in a manner that does not qualify for this exemption or is used
531	531	20 in any other nonexempt manner, the lessor shall be liable for
532	532	21 the tax imposed under this Act or the Service Use Tax Act, as
533	533	22 the case may be, based on the fair market value of the property
534	534	23 at the time the nonqualifying use occurs. No lessor shall
535	535	24 collect or attempt to collect an amount (however designated)
536	536	25 that purports to reimburse that lessor for the tax imposed by
537	537	26 this Act or the Service Use Tax Act, as the case may be, if the
538	538
539	539
540	540
541	541
542	542
543	543	SB0133 - 14 - LRB104 03841 HLH 13865 b
544	544
545	545
546	546	SB0133- 15 -LRB104 03841 HLH 13865 b SB0133 - 15 - LRB104 03841 HLH 13865 b
547	547	SB0133 - 15 - LRB104 03841 HLH 13865 b
548	548	1 tax has not been paid by the lessor. If a lessor improperly
549	549	2 collects any such amount from the lessee, the lessee shall
550	550	3 have a legal right to claim a refund of that amount from the
551	551	4 lessor. If, however, that amount is not refunded to the lessee
552	552	5 for any reason, the lessor is liable to pay that amount to the
553	553	6 Department. This paragraph is exempt from the provisions of
554	554	7 Section 3-90.
555	555	8 (32) Beginning on August 2, 2001 (the effective date of
556	556	9 Public Act 92-227), personal property purchased by a lessor
557	557	10 who leases the property, under a lease of one year or longer
558	558	11 executed or in effect at the time the lessor would otherwise be
559	559	12 subject to the tax imposed by this Act, to a governmental body
560	560	13 that has been issued an active sales tax exemption
561	561	14 identification number by the Department under Section 1g of
562	562	15 the Retailers' Occupation Tax Act. If the property is leased
563	563	16 in a manner that does not qualify for this exemption or used in
564	564	17 any other nonexempt manner, the lessor shall be liable for the
565	565	18 tax imposed under this Act or the Service Use Tax Act, as the
566	566	19 case may be, based on the fair market value of the property at
567	567	20 the time the nonqualifying use occurs. No lessor shall collect
568	568	21 or attempt to collect an amount (however designated) that
569	569	22 purports to reimburse that lessor for the tax imposed by this
570	570	23 Act or the Service Use Tax Act, as the case may be, if the tax
571	571	24 has not been paid by the lessor. If a lessor improperly
572	572	25 collects any such amount from the lessee, the lessee shall
573	573	26 have a legal right to claim a refund of that amount from the
574	574
575	575
576	576
577	577
578	578
579	579	SB0133 - 15 - LRB104 03841 HLH 13865 b
580	580
581	581
582	582	SB0133- 16 -LRB104 03841 HLH 13865 b SB0133 - 16 - LRB104 03841 HLH 13865 b
583	583	SB0133 - 16 - LRB104 03841 HLH 13865 b
584	584	1 lessor. If, however, that amount is not refunded to the lessee
585	585	2 for any reason, the lessor is liable to pay that amount to the
586	586	3 Department. This paragraph is exempt from the provisions of
587	587	4 Section 3-90.
588	588	5 (33) On and after July 1, 2003 and through June 30, 2004,
589	589	6 the use in this State of motor vehicles of the second division
590	590	7 with a gross vehicle weight in excess of 8,000 pounds and that
591	591	8 are subject to the commercial distribution fee imposed under
592	592	9 Section 3-815.1 of the Illinois Vehicle Code. Beginning on
593	593	10 July 1, 2004 and through June 30, 2005, the use in this State
594	594	11 of motor vehicles of the second division: (i) with a gross
595	595	12 vehicle weight rating in excess of 8,000 pounds; (ii) that are
596	596	13 subject to the commercial distribution fee imposed under
597	597	14 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
598	598	15 are primarily used for commercial purposes. Through June 30,
599	599	16 2005, this exemption applies to repair and replacement parts
600	600	17 added after the initial purchase of such a motor vehicle if
601	601	18 that motor vehicle is used in a manner that would qualify for
602	602	19 the rolling stock exemption otherwise provided for in this
603	603	20 Act. For purposes of this paragraph, the term "used for
604	604	21 commercial purposes" means the transportation of persons or
605	605	22 property in furtherance of any commercial or industrial
606	606	23 enterprise, whether for-hire or not.
607	607	24 (34) Beginning January 1, 2008, tangible personal property
608	608	25 used in the construction or maintenance of a community water
609	609	26 supply, as defined under Section 3.145 of the Environmental
610	610
611	611
612	612
613	613
614	614
615	615	SB0133 - 16 - LRB104 03841 HLH 13865 b
616	616
617	617
618	618	SB0133- 17 -LRB104 03841 HLH 13865 b SB0133 - 17 - LRB104 03841 HLH 13865 b
619	619	SB0133 - 17 - LRB104 03841 HLH 13865 b
620	620	1 Protection Act, that is operated by a not-for-profit
621	621	2 corporation that holds a valid water supply permit issued
622	622	3 under Title IV of the Environmental Protection Act. This
623	623	4 paragraph is exempt from the provisions of Section 3-90.
624	624	5 (35) Beginning January 1, 2010 and continuing through
625	625	6 December 31, 2029, materials, parts, equipment, components,
626	626	7 and furnishings incorporated into or upon an aircraft as part
627	627	8 of the modification, refurbishment, completion, replacement,
628	628	9 repair, or maintenance of the aircraft. This exemption
629	629	10 includes consumable supplies used in the modification,
630	630	11 refurbishment, completion, replacement, repair, and
631	631	12 maintenance of aircraft. However, until January 1, 2024, this
632	632	13 exemption excludes any materials, parts, equipment,
633	633	14 components, and consumable supplies used in the modification,
634	634	15 replacement, repair, and maintenance of aircraft engines or
635	635	16 power plants, whether such engines or power plants are
636	636	17 installed or uninstalled upon any such aircraft. "Consumable
637	637	18 supplies" include, but are not limited to, adhesive, tape,
638	638	19 sandpaper, general purpose lubricants, cleaning solution,
639	639	20 latex gloves, and protective films.
640	640	21 Beginning January 1, 2010 and continuing through December
641	641	22 31, 2023, this exemption applies only to the use of qualifying
642	642	23 tangible personal property by persons who modify, refurbish,
643	643	24 complete, repair, replace, or maintain aircraft and who (i)
644	644	25 hold an Air Agency Certificate and are empowered to operate an
645	645	26 approved repair station by the Federal Aviation
646	646
647	647
648	648
649	649
650	650
651	651	SB0133 - 17 - LRB104 03841 HLH 13865 b
652	652
653	653
654	654	SB0133- 18 -LRB104 03841 HLH 13865 b SB0133 - 18 - LRB104 03841 HLH 13865 b
655	655	SB0133 - 18 - LRB104 03841 HLH 13865 b
656	656	1 Administration, (ii) have a Class IV Rating, and (iii) conduct
657	657	2 operations in accordance with Part 145 of the Federal Aviation
658	658	3 Regulations. From January 1, 2024 through December 31, 2029,
659	659	4 this exemption applies only to the use of qualifying tangible
660	660	5 personal property by: (A) persons who modify, refurbish,
661	661	6 complete, repair, replace, or maintain aircraft and who (i)
662	662	7 hold an Air Agency Certificate and are empowered to operate an
663	663	8 approved repair station by the Federal Aviation
664	664	9 Administration, (ii) have a Class IV Rating, and (iii) conduct
665	665	10 operations in accordance with Part 145 of the Federal Aviation
666	666	11 Regulations; and (B) persons who engage in the modification,
667	667	12 replacement, repair, and maintenance of aircraft engines or
668	668	13 power plants without regard to whether or not those persons
669	669	14 meet the qualifications of item (A).
670	670	15 The exemption does not include aircraft operated by a
671	671	16 commercial air carrier providing scheduled passenger air
672	672	17 service pursuant to authority issued under Part 121 or Part
673	673	18 129 of the Federal Aviation Regulations. The changes made to
674	674	19 this paragraph (35) by Public Act 98-534 are declarative of
675	675	20 existing law. It is the intent of the General Assembly that the
676	676	21 exemption under this paragraph (35) applies continuously from
677	677	22 January 1, 2010 through December 31, 2024; however, no claim
678	678	23 for credit or refund is allowed for taxes paid as a result of
679	679	24 the disallowance of this exemption on or after January 1, 2015
680	680	25 and prior to February 5, 2020 (the effective date of Public Act
681	681	26 101-629).
682	682
683	683
684	684
685	685
686	686
687	687	SB0133 - 18 - LRB104 03841 HLH 13865 b
688	688
689	689
690	690	SB0133- 19 -LRB104 03841 HLH 13865 b SB0133 - 19 - LRB104 03841 HLH 13865 b
691	691	SB0133 - 19 - LRB104 03841 HLH 13865 b
692	692	1 (36) Tangible personal property purchased by a
693	693	2 public-facilities corporation, as described in Section
694	694	3 11-65-10 of the Illinois Municipal Code, for purposes of
695	695	4 constructing or furnishing a municipal convention hall, but
696	696	5 only if the legal title to the municipal convention hall is
697	697	6 transferred to the municipality without any further
698	698	7 consideration by or on behalf of the municipality at the time
699	699	8 of the completion of the municipal convention hall or upon the
700	700	9 retirement or redemption of any bonds or other debt
701	701	10 instruments issued by the public-facilities corporation in
702	702	11 connection with the development of the municipal convention
703	703	12 hall. This exemption includes existing public-facilities
704	704	13 corporations as provided in Section 11-65-25 of the Illinois
705	705	14 Municipal Code. This paragraph is exempt from the provisions
706	706	15 of Section 3-90.
707	707	16 (37) Beginning January 1, 2017 and through December 31,
708	708	17 2026, menstrual pads, tampons, and menstrual cups.
709	709	18 (38) Merchandise that is subject to the Rental Purchase
710	710	19 Agreement Occupation and Use Tax. The purchaser must certify
711	711	20 that the item is purchased to be rented subject to a
712	712	21 rental-purchase agreement, as defined in the Rental-Purchase
713	713	22 Agreement Act, and provide proof of registration under the
714	714	23 Rental Purchase Agreement Occupation and Use Tax Act. This
715	715	24 paragraph is exempt from the provisions of Section 3-90.
716	716	25 (39) Tangible personal property purchased by a purchaser
717	717	26 who is exempt from the tax imposed by this Act by operation of
718	718
719	719
720	720
721	721
722	722
723	723	SB0133 - 19 - LRB104 03841 HLH 13865 b
724	724
725	725
726	726	SB0133- 20 -LRB104 03841 HLH 13865 b SB0133 - 20 - LRB104 03841 HLH 13865 b
727	727	SB0133 - 20 - LRB104 03841 HLH 13865 b
728	728	1 federal law. This paragraph is exempt from the provisions of
729	729	2 Section 3-90.
730	730	3 (40) Qualified tangible personal property used in the
731	731	4 construction or operation of a data center that has been
732	732	5 granted a certificate of exemption by the Department of
733	733	6 Commerce and Economic Opportunity, whether that tangible
734	734	7 personal property is purchased by the owner, operator, or
735	735	8 tenant of the data center or by a contractor or subcontractor
736	736	9 of the owner, operator, or tenant. Data centers that would
737	737	10 have qualified for a certificate of exemption prior to January
738	738	11 1, 2020 had Public Act 101-31 been in effect may apply for and
739	739	12 obtain an exemption for subsequent purchases of computer
740	740	13 equipment or enabling software purchased or leased to upgrade,
741	741	14 supplement, or replace computer equipment or enabling software
742	742	15 purchased or leased in the original investment that would have
743	743	16 qualified.
744	744	17 The Department of Commerce and Economic Opportunity shall
745	745	18 grant a certificate of exemption under this item (40) to
746	746	19 qualified data centers as defined by Section 605-1025 of the
747	747	20 Department of Commerce and Economic Opportunity Law of the
748	748	21 Civil Administrative Code of Illinois.
749	749	22 For the purposes of this item (40):
750	750	23 "Data center" means a building or a series of
751	751	24 buildings rehabilitated or constructed to house working
752	752	25 servers in one physical location or multiple sites within
753	753	26 the State of Illinois.
754	754
755	755
756	756
757	757
758	758
759	759	SB0133 - 20 - LRB104 03841 HLH 13865 b
760	760
761	761
762	762	SB0133- 21 -LRB104 03841 HLH 13865 b SB0133 - 21 - LRB104 03841 HLH 13865 b
763	763	SB0133 - 21 - LRB104 03841 HLH 13865 b
764	764	1 "Qualified tangible personal property" means:
765	765	2 electrical systems and equipment; climate control and
766	766	3 chilling equipment and systems; mechanical systems and
767	767	4 equipment; monitoring and secure systems; emergency
768	768	5 generators; hardware; computers; servers; data storage
769	769	6 devices; network connectivity equipment; racks; cabinets;
770	770	7 telecommunications cabling infrastructure; raised floor
771	771	8 systems; peripheral components or systems; software;
772	772	9 mechanical, electrical, or plumbing systems; battery
773	773	10 systems; cooling systems and towers; temperature control
774	774	11 systems; other cabling; and other data center
775	775	12 infrastructure equipment and systems necessary to operate
776	776	13 qualified tangible personal property, including fixtures;
777	777	14 and component parts of any of the foregoing, including
778	778	15 installation, maintenance, repair, refurbishment, and
779	779	16 replacement of qualified tangible personal property to
780	780	17 generate, transform, transmit, distribute, or manage
781	781	18 electricity necessary to operate qualified tangible
782	782	19 personal property; and all other tangible personal
783	783	20 property that is essential to the operations of a computer
784	784	21 data center. The term "qualified tangible personal
785	785	22 property" also includes building materials physically
786	786	23 incorporated into the qualifying data center. To document
787	787	24 the exemption allowed under this Section, the retailer
788	788	25 must obtain from the purchaser a copy of the certificate
789	789	26 of eligibility issued by the Department of Commerce and
790	790
791	791
792	792
793	793
794	794
795	795	SB0133 - 21 - LRB104 03841 HLH 13865 b
796	796
797	797
798	798	SB0133- 22 -LRB104 03841 HLH 13865 b SB0133 - 22 - LRB104 03841 HLH 13865 b
799	799	SB0133 - 22 - LRB104 03841 HLH 13865 b
800	800	1 Economic Opportunity.
801	801	2 This item (40) is exempt from the provisions of Section
802	802	3 3-90.
803	803	4 (41) Beginning July 1, 2022, breast pumps, breast pump
804	804	5 collection and storage supplies, and breast pump kits. This
805	805	6 item (41) is exempt from the provisions of Section 3-90. As
806	806	7 used in this item (41):
807	807	8 "Breast pump" means an electrically controlled or
808	808	9 manually controlled pump device designed or marketed to be
809	809	10 used to express milk from a human breast during lactation,
810	810	11 including the pump device and any battery, AC adapter, or
811	811	12 other power supply unit that is used to power the pump
812	812	13 device and is packaged and sold with the pump device at the
813	813	14 time of sale.
814	814	15 "Breast pump collection and storage supplies" means
815	815	16 items of tangible personal property designed or marketed
816	816	17 to be used in conjunction with a breast pump to collect
817	817	18 milk expressed from a human breast and to store collected
818	818	19 milk until it is ready for consumption.
819	819	20 "Breast pump collection and storage supplies"
820	820	21 includes, but is not limited to: breast shields and breast
821	821	22 shield connectors; breast pump tubes and tubing adapters;
822	822	23 breast pump valves and membranes; backflow protectors and
823	823	24 backflow protector adaptors; bottles and bottle caps
824	824	25 specific to the operation of the breast pump; and breast
825	825	26 milk storage bags.
826	826
827	827
828	828
829	829
830	830
831	831	SB0133 - 22 - LRB104 03841 HLH 13865 b
832	832
833	833
834	834	SB0133- 23 -LRB104 03841 HLH 13865 b SB0133 - 23 - LRB104 03841 HLH 13865 b
835	835	SB0133 - 23 - LRB104 03841 HLH 13865 b
836	836	1 "Breast pump collection and storage supplies" does not
837	837	2 include: (1) bottles and bottle caps not specific to the
838	838	3 operation of the breast pump; (2) breast pump travel bags
839	839	4 and other similar carrying accessories, including ice
840	840	5 packs, labels, and other similar products; (3) breast pump
841	841	6 cleaning supplies; (4) nursing bras, bra pads, breast
842	842	7 shells, and other similar products; and (5) creams,
843	843	8 ointments, and other similar products that relieve
844	844	9 breastfeeding-related symptoms or conditions of the
845	845	10 breasts or nipples, unless sold as part of a breast pump
846	846	11 kit that is pre-packaged by the breast pump manufacturer
847	847	12 or distributor.
848	848	13 "Breast pump kit" means a kit that: (1) contains no
849	849	14 more than a breast pump, breast pump collection and
850	850	15 storage supplies, a rechargeable battery for operating the
851	851	16 breast pump, a breastmilk cooler, bottle stands, ice
852	852	17 packs, and a breast pump carrying case; and (2) is
853	853	18 pre-packaged as a breast pump kit by the breast pump
854	854	19 manufacturer or distributor.
855	855	20 (42) Tangible personal property sold by or on behalf of
856	856	21 the State Treasurer pursuant to the Revised Uniform Unclaimed
857	857	22 Property Act. This item (42) is exempt from the provisions of
858	858	23 Section 3-90.
859	859	24 (43) Beginning on January 1, 2024, tangible personal
860	860	25 property purchased by an active duty member of the armed
861	861	26 forces of the United States who presents valid military
862	862
863	863
864	864
865	865
866	866
867	867	SB0133 - 23 - LRB104 03841 HLH 13865 b
868	868
869	869
870	870	SB0133- 24 -LRB104 03841 HLH 13865 b SB0133 - 24 - LRB104 03841 HLH 13865 b
871	871	SB0133 - 24 - LRB104 03841 HLH 13865 b
872	872	1 identification and purchases the property using a form of
873	873	2 payment where the federal government is the payor. The member
874	874	3 of the armed forces must complete, at the point of sale, a form
875	875	4 prescribed by the Department of Revenue documenting that the
876	876	5 transaction is eligible for the exemption under this
877	877	6 paragraph. Retailers must keep the form as documentation of
878	878	7 the exemption in their records for a period of not less than 6
879	879	8 years. "Armed forces of the United States" means the United
880	880	9 States Army, Navy, Air Force, Space Force, Marine Corps, or
881	881	10 Coast Guard. This paragraph is exempt from the provisions of
882	882	11 Section 3-90.
883	883	12 (44) Beginning July 1, 2024, home-delivered meals provided
884	884	13 to Medicare or Medicaid recipients when payment is made by an
885	885	14 intermediary, such as a Medicare Administrative Contractor, a
886	886	15 Managed Care Organization, or a Medicare Advantage
887	887	16 Organization, pursuant to a government contract. This item
888	888	17 (44) is exempt from the provisions of Section 3-90.
889	889	18 (45) (44) Beginning on January 1, 2026, as further defined
890	890	19 in Section 3-10, food for human consumption that is to be
891	891	20 consumed off the premises where it is sold (other than
892	892	21 alcoholic beverages, food consisting of or infused with adult
893	893	22 use cannabis, soft drinks, candy, and food that has been
894	894	23 prepared for immediate consumption). This item (45) (44) is
895	895	24 exempt from the provisions of Section 3-90.
896	896	25 (46) (44) Use by the lessee of the following leased
897	897	26 tangible personal property:
898	898
899	899
900	900
901	901
902	902
903	903	SB0133 - 24 - LRB104 03841 HLH 13865 b
904	904
905	905
906	906	SB0133- 25 -LRB104 03841 HLH 13865 b SB0133 - 25 - LRB104 03841 HLH 13865 b
907	907	SB0133 - 25 - LRB104 03841 HLH 13865 b
908	908	1 (1) software transferred subject to a license that
909	909	2 meets the following requirements:
910	910	3 (A) it is evidenced by a written agreement signed
911	911	4 by the licensor and the customer;
912	912	5 (i) an electronic agreement in which the
913	913	6 customer accepts the license by means of an
914	914	7 electronic signature that is verifiable and can be
915	915	8 authenticated and is attached to or made part of
916	916	9 the license will comply with this requirement;
917	917	10 (ii) a license agreement in which the customer
918	918	11 electronically accepts the terms by clicking "I
919	919	12 agree" does not comply with this requirement;
920	920	13 (B) it restricts the customer's duplication and
921	921	14 use of the software;
922	922	15 (C) it prohibits the customer from licensing,
923	923	16 sublicensing, or transferring the software to a third
924	924	17 party (except to a related party) without the
925	925	18 permission and continued control of the licensor;
926	926	19 (D) the licensor has a policy of providing another
927	927	20 copy at minimal or no charge if the customer loses or
928	928	21 damages the software, or of permitting the licensee to
929	929	22 make and keep an archival copy, and such policy is
930	930	23 either stated in the license agreement, supported by
931	931	24 the licensor's books and records, or supported by a
932	932	25 notarized statement made under penalties of perjury by
933	933	26 the licensor; and
934	934
935	935
936	936
937	937
938	938
939	939	SB0133 - 25 - LRB104 03841 HLH 13865 b
940	940
941	941
942	942	SB0133- 26 -LRB104 03841 HLH 13865 b SB0133 - 26 - LRB104 03841 HLH 13865 b
943	943	SB0133 - 26 - LRB104 03841 HLH 13865 b
944	944	1 (E) the customer must destroy or return all copies
945	945	2 of the software to the licensor at the end of the
946	946	3 license period; this provision is deemed to be met, in
947	947	4 the case of a perpetual license, without being set
948	948	5 forth in the license agreement; and
949	949	6 (2) property that is subject to a tax on lease
950	950	7 receipts imposed by a home rule unit of local government
951	951	8 if the ordinance imposing that tax was adopted prior to
952	952	9 January 1, 2023.
953	953	10 (47) A motor vehicle of the first division, as defined in
954	954	11 Section 1-146 of the Illinois Vehicle Code, that is registered
955	955	12 in the State to an Illinois resident who acquired the vehicle
956	956	13 while the Illinois resident was stationed outside of this
957	957	14 State as an active duty member of the military. This item (47)
958	958	15 is exempt from the provisions of Section 3-90.
959	959	16 As used in this item (47):
960	960	17 "Active duty member of the military" means a service
961	961	18 member who undertakes any full-time military training or
962	962	19 full-time military duty, no matter how described under federal
963	963	20 or State law, for which a service member is ordered to report
964	964	21 by the President, by the Governor of a state, commonwealth, or
965	965	22 territory of the United States, by an act of Congress, or by
966	966	23 any other appropriate military authority.
967	967	24 "Illinois resident" means an individual who meets the
968	968	25 definition of "resident" under subparagraph (A) of paragraph
969	969	26 (20) of subsection (a) of Section 1501 of the Illinois Income
970	970
971	971
972	972
973	973
974	974
975	975	SB0133 - 26 - LRB104 03841 HLH 13865 b
976	976
977	977
978	978	SB0133- 27 -LRB104 03841 HLH 13865 b SB0133 - 27 - LRB104 03841 HLH 13865 b
979	979	SB0133 - 27 - LRB104 03841 HLH 13865 b
980	980	1 Tax Act.
981	981	2 "Service member" means a person who is a member of any
982	982	3 component of the United States Armed Forces or the National
983	983	4 Guard of any state, the District of Columbia, a commonwealth,
984	984	5 or a territory of the United States.
985	985	6 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
986	986	7 Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
987	987	8 eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
988	988	9 Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
989	989	10 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
990	990	11 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
991	991	12 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; revised
992	992	13 11-26-24.)
993	993	14 Section 10. The Service Use Tax Act is amended by changing
994	994	15 Section 3-5 as follows:
995	995	16 (35 ILCS 110/3-5)
996	996	17 Sec. 3-5. Exemptions. Use of the following tangible
997	997	18 personal property is exempt from the tax imposed by this Act:
998	998	19 (1) Personal property purchased from a corporation,
999	999	20 society, association, foundation, institution, or
1000	1000	21 organization, other than a limited liability company, that is
1001	1001	22 organized and operated as a not-for-profit service enterprise
1002	1002	23 for the benefit of persons 65 years of age or older if the
1003	1003	24 personal property was not purchased by the enterprise for the
1004	1004
1005	1005
1006	1006
1007	1007
1008	1008
1009	1009	SB0133 - 27 - LRB104 03841 HLH 13865 b
1010	1010
1011	1011
1012	1012	SB0133- 28 -LRB104 03841 HLH 13865 b SB0133 - 28 - LRB104 03841 HLH 13865 b
1013	1013	SB0133 - 28 - LRB104 03841 HLH 13865 b
1014	1014	1 purpose of resale by the enterprise.
1015	1015	2 (2) Personal property purchased by a non-profit Illinois
1016	1016	3 county fair association for use in conducting, operating, or
1017	1017	4 promoting the county fair.
1018	1018	5 (3) Personal property purchased by a not-for-profit arts
1019	1019	6 or cultural organization that establishes, by proof required
1020	1020	7 by the Department by rule, that it has received an exemption
1021	1021	8 under Section 501(c)(3) of the Internal Revenue Code and that
1022	1022	9 is organized and operated primarily for the presentation or
1023	1023	10 support of arts or cultural programming, activities, or
1024	1024	11 services. These organizations include, but are not limited to,
1025	1025	12 music and dramatic arts organizations such as symphony
1026	1026	13 orchestras and theatrical groups, arts and cultural service
1027	1027	14 organizations, local arts councils, visual arts organizations,
1028	1028	15 and media arts organizations. On and after July 1, 2001 (the
1029	1029	16 effective date of Public Act 92-35), however, an entity
1030	1030	17 otherwise eligible for this exemption shall not make tax-free
1031	1031	18 purchases unless it has an active identification number issued
1032	1032	19 by the Department.
1033	1033	20 (4) Legal tender, currency, medallions, or gold or silver
1034	1034	21 coinage issued by the State of Illinois, the government of the
1035	1035	22 United States of America, or the government of any foreign
1036	1036	23 country, and bullion.
1037	1037	24 (5) Until July 1, 2003 and beginning again on September 1,
1038	1038	25 2004 through August 30, 2014, graphic arts machinery and
1039	1039	26 equipment, including repair and replacement parts, both new
1040	1040
1041	1041
1042	1042
1043	1043
1044	1044
1045	1045	SB0133 - 28 - LRB104 03841 HLH 13865 b
1046	1046
1047	1047
1048	1048	SB0133- 29 -LRB104 03841 HLH 13865 b SB0133 - 29 - LRB104 03841 HLH 13865 b
1049	1049	SB0133 - 29 - LRB104 03841 HLH 13865 b
1050	1050	1 and used, and including that manufactured on special order or
1051	1051	2 purchased for lease, certified by the purchaser to be used
1052	1052	3 primarily for graphic arts production. Equipment includes
1053	1053	4 chemicals or chemicals acting as catalysts but only if the
1054	1054	5 chemicals or chemicals acting as catalysts effect a direct and
1055	1055	6 immediate change upon a graphic arts product. Beginning on
1056	1056	7 July 1, 2017, graphic arts machinery and equipment is included
1057	1057	8 in the manufacturing and assembling machinery and equipment
1058	1058	9 exemption under Section 2 of this Act.
1059	1059	10 (6) Personal property purchased from a teacher-sponsored
1060	1060	11 student organization affiliated with an elementary or
1061	1061	12 secondary school located in Illinois.
1062	1062	13 (7) Farm machinery and equipment, both new and used,
1063	1063	14 including that manufactured on special order, certified by the
1064	1064	15 purchaser to be used primarily for production agriculture or
1065	1065	16 State or federal agricultural programs, including individual
1066	1066	17 replacement parts for the machinery and equipment, including
1067	1067	18 machinery and equipment purchased for lease, and including
1068	1068	19 implements of husbandry defined in Section 1-130 of the
1069	1069	20 Illinois Vehicle Code, farm machinery and agricultural
1070	1070	21 chemical and fertilizer spreaders, and nurse wagons required
1071	1071	22 to be registered under Section 3-809 of the Illinois Vehicle
1072	1072	23 Code, but excluding other motor vehicles required to be
1073	1073	24 registered under the Illinois Vehicle Code. Horticultural
1074	1074	25 polyhouses or hoop houses used for propagating, growing, or
1075	1075	26 overwintering plants shall be considered farm machinery and
1076	1076
1077	1077
1078	1078
1079	1079
1080	1080
1081	1081	SB0133 - 29 - LRB104 03841 HLH 13865 b
1082	1082
1083	1083
1084	1084	SB0133- 30 -LRB104 03841 HLH 13865 b SB0133 - 30 - LRB104 03841 HLH 13865 b
1085	1085	SB0133 - 30 - LRB104 03841 HLH 13865 b
1086	1086	1 equipment under this item (7). Agricultural chemical tender
1087	1087	2 tanks and dry boxes shall include units sold separately from a
1088	1088	3 motor vehicle required to be licensed and units sold mounted
1089	1089	4 on a motor vehicle required to be licensed if the selling price
1090	1090	5 of the tender is separately stated.
1091	1091	6 Farm machinery and equipment shall include precision
1092	1092	7 farming equipment that is installed or purchased to be
1093	1093	8 installed on farm machinery and equipment, including, but not
1094	1094	9 limited to, tractors, harvesters, sprayers, planters, seeders,
1095	1095	10 or spreaders. Precision farming equipment includes, but is not
1096	1096	11 limited to, soil testing sensors, computers, monitors,
1097	1097	12 software, global positioning and mapping systems, and other
1098	1098	13 such equipment.
1099	1099	14 Farm machinery and equipment also includes computers,
1100	1100	15 sensors, software, and related equipment used primarily in the
1101	1101	16 computer-assisted operation of production agriculture
1102	1102	17 facilities, equipment, and activities such as, but not limited
1103	1103	18 to, the collection, monitoring, and correlation of animal and
1104	1104	19 crop data for the purpose of formulating animal diets and
1105	1105	20 agricultural chemicals.
1106	1106	21 Beginning on January 1, 2024, farm machinery and equipment
1107	1107	22 also includes electrical power generation equipment used
1108	1108	23 primarily for production agriculture.
1109	1109	24 This item (7) is exempt from the provisions of Section
1110	1110	25 3-75.
1111	1111	26 (8) Until June 30, 2013, fuel and petroleum products sold
1112	1112
1113	1113
1114	1114
1115	1115
1116	1116
1117	1117	SB0133 - 30 - LRB104 03841 HLH 13865 b
1118	1118
1119	1119
1120	1120	SB0133- 31 -LRB104 03841 HLH 13865 b SB0133 - 31 - LRB104 03841 HLH 13865 b
1121	1121	SB0133 - 31 - LRB104 03841 HLH 13865 b
1122	1122	1 to or used by an air common carrier, certified by the carrier
1123	1123	2 to be used for consumption, shipment, or storage in the
1124	1124	3 conduct of its business as an air common carrier, for a flight
1125	1125	4 destined for or returning from a location or locations outside
1126	1126	5 the United States without regard to previous or subsequent
1127	1127	6 domestic stopovers.
1128	1128	7 Beginning July 1, 2013, fuel and petroleum products sold
1129	1129	8 to or used by an air carrier, certified by the carrier to be
1130	1130	9 used for consumption, shipment, or storage in the conduct of
1131	1131	10 its business as an air common carrier, for a flight that (i) is
1132	1132	11 engaged in foreign trade or is engaged in trade between the
1133	1133	12 United States and any of its possessions and (ii) transports
1134	1134	13 at least one individual or package for hire from the city of
1135	1135	14 origination to the city of final destination on the same
1136	1136	15 aircraft, without regard to a change in the flight number of
1137	1137	16 that aircraft.
1138	1138	17 (9) Proceeds of mandatory service charges separately
1139	1139	18 stated on customers' bills for the purchase and consumption of
1140	1140	19 food and beverages acquired as an incident to the purchase of a
1141	1141	20 service from a serviceman, to the extent that the proceeds of
1142	1142	21 the service charge are in fact turned over as tips or as a
1143	1143	22 substitute for tips to the employees who participate directly
1144	1144	23 in preparing, serving, hosting or cleaning up the food or
1145	1145	24 beverage function with respect to which the service charge is
1146	1146	25 imposed.
1147	1147	26 (10) Until July 1, 2003, oil field exploration, drilling,
1148	1148
1149	1149
1150	1150
1151	1151
1152	1152
1153	1153	SB0133 - 31 - LRB104 03841 HLH 13865 b
1154	1154
1155	1155
1156	1156	SB0133- 32 -LRB104 03841 HLH 13865 b SB0133 - 32 - LRB104 03841 HLH 13865 b
1157	1157	SB0133 - 32 - LRB104 03841 HLH 13865 b
1158	1158	1 and production equipment, including (i) rigs and parts of
1159	1159	2 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1160	1160	3 pipe and tubular goods, including casing and drill strings,
1161	1161	4 (iii) pumps and pump-jack units, (iv) storage tanks and flow
1162	1162	5 lines, (v) any individual replacement part for oil field
1163	1163	6 exploration, drilling, and production equipment, and (vi)
1164	1164	7 machinery and equipment purchased for lease; but excluding
1165	1165	8 motor vehicles required to be registered under the Illinois
1166	1166	9 Vehicle Code.
1167	1167	10 (11) Proceeds from the sale of photoprocessing machinery
1168	1168	11 and equipment, including repair and replacement parts, both
1169	1169	12 new and used, including that manufactured on special order,
1170	1170	13 certified by the purchaser to be used primarily for
1171	1171	14 photoprocessing, and including photoprocessing machinery and
1172	1172	15 equipment purchased for lease.
1173	1173	16 (12) Until July 1, 2028, coal and aggregate exploration,
1174	1174	17 mining, off-highway hauling, processing, maintenance, and
1175	1175	18 reclamation equipment, including replacement parts and
1176	1176	19 equipment, and including equipment purchased for lease, but
1177	1177	20 excluding motor vehicles required to be registered under the
1178	1178	21 Illinois Vehicle Code. The changes made to this Section by
1179	1179	22 Public Act 97-767 apply on and after July 1, 2003, but no claim
1180	1180	23 for credit or refund is allowed on or after August 16, 2013
1181	1181	24 (the effective date of Public Act 98-456) for such taxes paid
1182	1182	25 during the period beginning July 1, 2003 and ending on August
1183	1183	26 16, 2013 (the effective date of Public Act 98-456).
1184	1184
1185	1185
1186	1186
1187	1187
1188	1188
1189	1189	SB0133 - 32 - LRB104 03841 HLH 13865 b
1190	1190
1191	1191
1192	1192	SB0133- 33 -LRB104 03841 HLH 13865 b SB0133 - 33 - LRB104 03841 HLH 13865 b
1193	1193	SB0133 - 33 - LRB104 03841 HLH 13865 b
1194	1194	1 (13) Semen used for artificial insemination of livestock
1195	1195	2 for direct agricultural production.
1196	1196	3 (14) Horses, or interests in horses, registered with and
1197	1197	4 meeting the requirements of any of the Arabian Horse Club
1198	1198	5 Registry of America, Appaloosa Horse Club, American Quarter
1199	1199	6 Horse Association, United States Trotting Association, or
1200	1200	7 Jockey Club, as appropriate, used for purposes of breeding or
1201	1201	8 racing for prizes. This item (14) is exempt from the
1202	1202	9 provisions of Section 3-75, and the exemption provided for
1203	1203	10 under this item (14) applies for all periods beginning May 30,
1204	1204	11 1995, but no claim for credit or refund is allowed on or after
1205	1205	12 January 1, 2008 (the effective date of Public Act 95-88) for
1206	1206	13 such taxes paid during the period beginning May 30, 2000 and
1207	1207	14 ending on January 1, 2008 (the effective date of Public Act
1208	1208	15 95-88).
1209	1209	16 (15) Computers and communications equipment utilized for
1210	1210	17 any hospital purpose and equipment used in the diagnosis,
1211	1211	18 analysis, or treatment of hospital patients purchased by a
1212	1212	19 lessor who leases the equipment, under a lease of one year or
1213	1213	20 longer executed or in effect at the time the lessor would
1214	1214	21 otherwise be subject to the tax imposed by this Act, to a
1215	1215	22 hospital that has been issued an active tax exemption
1216	1216	23 identification number by the Department under Section 1g of
1217	1217	24 the Retailers' Occupation Tax Act. If the equipment is leased
1218	1218	25 in a manner that does not qualify for this exemption or is used
1219	1219	26 in any other non-exempt manner, the lessor shall be liable for
1220	1220
1221	1221
1222	1222
1223	1223
1224	1224
1225	1225	SB0133 - 33 - LRB104 03841 HLH 13865 b
1226	1226
1227	1227
1228	1228	SB0133- 34 -LRB104 03841 HLH 13865 b SB0133 - 34 - LRB104 03841 HLH 13865 b
1229	1229	SB0133 - 34 - LRB104 03841 HLH 13865 b
1230	1230	1 the tax imposed under this Act or the Use Tax Act, as the case
1231	1231	2 may be, based on the fair market value of the property at the
1232	1232	3 time the non-qualifying use occurs. No lessor shall collect or
1233	1233	4 attempt to collect an amount (however designated) that
1234	1234	5 purports to reimburse that lessor for the tax imposed by this
1235	1235	6 Act or the Use Tax Act, as the case may be, if the tax has not
1236	1236	7 been paid by the lessor. If a lessor improperly collects any
1237	1237	8 such amount from the lessee, the lessee shall have a legal
1238	1238	9 right to claim a refund of that amount from the lessor. If,
1239	1239	10 however, that amount is not refunded to the lessee for any
1240	1240	11 reason, the lessor is liable to pay that amount to the
1241	1241	12 Department.
1242	1242	13 (16) Personal property purchased by a lessor who leases
1243	1243	14 the property, under a lease of one year or longer executed or
1244	1244	15 in effect at the time the lessor would otherwise be subject to
1245	1245	16 the tax imposed by this Act, to a governmental body that has
1246	1246	17 been issued an active tax exemption identification number by
1247	1247	18 the Department under Section 1g of the Retailers' Occupation
1248	1248	19 Tax Act. If the property is leased in a manner that does not
1249	1249	20 qualify for this exemption or is used in any other non-exempt
1250	1250	21 manner, the lessor shall be liable for the tax imposed under
1251	1251	22 this Act or the Use Tax Act, as the case may be, based on the
1252	1252	23 fair market value of the property at the time the
1253	1253	24 non-qualifying use occurs. No lessor shall collect or attempt
1254	1254	25 to collect an amount (however designated) that purports to
1255	1255	26 reimburse that lessor for the tax imposed by this Act or the
1256	1256
1257	1257
1258	1258
1259	1259
1260	1260
1261	1261	SB0133 - 34 - LRB104 03841 HLH 13865 b
1262	1262
1263	1263
1264	1264	SB0133- 35 -LRB104 03841 HLH 13865 b SB0133 - 35 - LRB104 03841 HLH 13865 b
1265	1265	SB0133 - 35 - LRB104 03841 HLH 13865 b
1266	1266	1 Use Tax Act, as the case may be, if the tax has not been paid
1267	1267	2 by the lessor. If a lessor improperly collects any such amount
1268	1268	3 from the lessee, the lessee shall have a legal right to claim a
1269	1269	4 refund of that amount from the lessor. If, however, that
1270	1270	5 amount is not refunded to the lessee for any reason, the lessor
1271	1271	6 is liable to pay that amount to the Department.
1272	1272	7 (17) Beginning with taxable years ending on or after
1273	1273	8 December 31, 1995 and ending with taxable years ending on or
1274	1274	9 before December 31, 2004, personal property that is donated
1275	1275	10 for disaster relief to be used in a State or federally declared
1276	1276	11 disaster area in Illinois or bordering Illinois by a
1277	1277	12 manufacturer or retailer that is registered in this State to a
1278	1278	13 corporation, society, association, foundation, or institution
1279	1279	14 that has been issued a sales tax exemption identification
1280	1280	15 number by the Department that assists victims of the disaster
1281	1281	16 who reside within the declared disaster area.
1282	1282	17 (18) Beginning with taxable years ending on or after
1283	1283	18 December 31, 1995 and ending with taxable years ending on or
1284	1284	19 before December 31, 2004, personal property that is used in
1285	1285	20 the performance of infrastructure repairs in this State,
1286	1286	21 including, but not limited to, municipal roads and streets,
1287	1287	22 access roads, bridges, sidewalks, waste disposal systems,
1288	1288	23 water and sewer line extensions, water distribution and
1289	1289	24 purification facilities, storm water drainage and retention
1290	1290	25 facilities, and sewage treatment facilities, resulting from a
1291	1291	26 State or federally declared disaster in Illinois or bordering
1292	1292
1293	1293
1294	1294
1295	1295
1296	1296
1297	1297	SB0133 - 35 - LRB104 03841 HLH 13865 b
1298	1298
1299	1299
1300	1300	SB0133- 36 -LRB104 03841 HLH 13865 b SB0133 - 36 - LRB104 03841 HLH 13865 b
1301	1301	SB0133 - 36 - LRB104 03841 HLH 13865 b
1302	1302	1 Illinois when such repairs are initiated on facilities located
1303	1303	2 in the declared disaster area within 6 months after the
1304	1304	3 disaster.
1305	1305	4 (19) Beginning July 1, 1999, game or game birds purchased
1306	1306	5 at a "game breeding and hunting preserve area" as that term is
1307	1307	6 used in the Wildlife Code. This paragraph is exempt from the
1308	1308	7 provisions of Section 3-75.
1309	1309	8 (20) A motor vehicle, as that term is defined in Section
1310	1310	9 1-146 of the Illinois Vehicle Code, that is donated to a
1311	1311	10 corporation, limited liability company, society, association,
1312	1312	11 foundation, or institution that is determined by the
1313	1313	12 Department to be organized and operated exclusively for
1314	1314	13 educational purposes. For purposes of this exemption, "a
1315	1315	14 corporation, limited liability company, society, association,
1316	1316	15 foundation, or institution organized and operated exclusively
1317	1317	16 for educational purposes" means all tax-supported public
1318	1318	17 schools, private schools that offer systematic instruction in
1319	1319	18 useful branches of learning by methods common to public
1320	1320	19 schools and that compare favorably in their scope and
1321	1321	20 intensity with the course of study presented in tax-supported
1322	1322	21 schools, and vocational or technical schools or institutes
1323	1323	22 organized and operated exclusively to provide a course of
1324	1324	23 study of not less than 6 weeks duration and designed to prepare
1325	1325	24 individuals to follow a trade or to pursue a manual,
1326	1326	25 technical, mechanical, industrial, business, or commercial
1327	1327	26 occupation.
1328	1328
1329	1329
1330	1330
1331	1331
1332	1332
1333	1333	SB0133 - 36 - LRB104 03841 HLH 13865 b
1334	1334
1335	1335
1336	1336	SB0133- 37 -LRB104 03841 HLH 13865 b SB0133 - 37 - LRB104 03841 HLH 13865 b
1337	1337	SB0133 - 37 - LRB104 03841 HLH 13865 b
1338	1338	1 (21) Beginning January 1, 2000, personal property,
1339	1339	2 including food, purchased through fundraising events for the
1340	1340	3 benefit of a public or private elementary or secondary school,
1341	1341	4 a group of those schools, or one or more school districts if
1342	1342	5 the events are sponsored by an entity recognized by the school
1343	1343	6 district that consists primarily of volunteers and includes
1344	1344	7 parents and teachers of the school children. This paragraph
1345	1345	8 does not apply to fundraising events (i) for the benefit of
1346	1346	9 private home instruction or (ii) for which the fundraising
1347	1347	10 entity purchases the personal property sold at the events from
1348	1348	11 another individual or entity that sold the property for the
1349	1349	12 purpose of resale by the fundraising entity and that profits
1350	1350	13 from the sale to the fundraising entity. This paragraph is
1351	1351	14 exempt from the provisions of Section 3-75.
1352	1352	15 (22) Beginning January 1, 2000 and through December 31,
1353	1353	16 2001, new or used automatic vending machines that prepare and
1354	1354	17 serve hot food and beverages, including coffee, soup, and
1355	1355	18 other items, and replacement parts for these machines.
1356	1356	19 Beginning January 1, 2002 and through June 30, 2003, machines
1357	1357	20 and parts for machines used in commercial, coin-operated
1358	1358	21 amusement and vending business if a use or occupation tax is
1359	1359	22 paid on the gross receipts derived from the use of the
1360	1360	23 commercial, coin-operated amusement and vending machines. This
1361	1361	24 paragraph is exempt from the provisions of Section 3-75.
1362	1362	25 (23) Beginning August 23, 2001 and through June 30, 2016,
1363	1363	26 food for human consumption that is to be consumed off the
1364	1364
1365	1365
1366	1366
1367	1367
1368	1368
1369	1369	SB0133 - 37 - LRB104 03841 HLH 13865 b
1370	1370
1371	1371
1372	1372	SB0133- 38 -LRB104 03841 HLH 13865 b SB0133 - 38 - LRB104 03841 HLH 13865 b
1373	1373	SB0133 - 38 - LRB104 03841 HLH 13865 b
1374	1374	1 premises where it is sold (other than alcoholic beverages,
1375	1375	2 soft drinks, and food that has been prepared for immediate
1376	1376	3 consumption) and prescription and nonprescription medicines,
1377	1377	4 drugs, medical appliances, and insulin, urine testing
1378	1378	5 materials, syringes, and needles used by diabetics, for human
1379	1379	6 use, when purchased for use by a person receiving medical
1380	1380	7 assistance under Article V of the Illinois Public Aid Code who
1381	1381	8 resides in a licensed long-term care facility, as defined in
1382	1382	9 the Nursing Home Care Act, or in a licensed facility as defined
1383	1383	10 in the ID/DD Community Care Act, the MC/DD Act, or the
1384	1384	11 Specialized Mental Health Rehabilitation Act of 2013.
1385	1385	12 (24) Beginning on August 2, 2001 (the effective date of
1386	1386	13 Public Act 92-227), computers and communications equipment
1387	1387	14 utilized for any hospital purpose and equipment used in the
1388	1388	15 diagnosis, analysis, or treatment of hospital patients
1389	1389	16 purchased by a lessor who leases the equipment, under a lease
1390	1390	17 of one year or longer executed or in effect at the time the
1391	1391	18 lessor would otherwise be subject to the tax imposed by this
1392	1392	19 Act, to a hospital that has been issued an active tax exemption
1393	1393	20 identification number by the Department under Section 1g of
1394	1394	21 the Retailers' Occupation Tax Act. If the equipment is leased
1395	1395	22 in a manner that does not qualify for this exemption or is used
1396	1396	23 in any other nonexempt manner, the lessor shall be liable for
1397	1397	24 the tax imposed under this Act or the Use Tax Act, as the case
1398	1398	25 may be, based on the fair market value of the property at the
1399	1399	26 time the nonqualifying use occurs. No lessor shall collect or
1400	1400
1401	1401
1402	1402
1403	1403
1404	1404
1405	1405	SB0133 - 38 - LRB104 03841 HLH 13865 b
1406	1406
1407	1407
1408	1408	SB0133- 39 -LRB104 03841 HLH 13865 b SB0133 - 39 - LRB104 03841 HLH 13865 b
1409	1409	SB0133 - 39 - LRB104 03841 HLH 13865 b
1410	1410	1 attempt to collect an amount (however designated) that
1411	1411	2 purports to reimburse that lessor for the tax imposed by this
1412	1412	3 Act or the Use Tax Act, as the case may be, if the tax has not
1413	1413	4 been paid by the lessor. If a lessor improperly collects any
1414	1414	5 such amount from the lessee, the lessee shall have a legal
1415	1415	6 right to claim a refund of that amount from the lessor. If,
1416	1416	7 however, that amount is not refunded to the lessee for any
1417	1417	8 reason, the lessor is liable to pay that amount to the
1418	1418	9 Department. This paragraph is exempt from the provisions of
1419	1419	10 Section 3-75.
1420	1420	11 (25) Beginning on August 2, 2001 (the effective date of
1421	1421	12 Public Act 92-227), personal property purchased by a lessor
1422	1422	13 who leases the property, under a lease of one year or longer
1423	1423	14 executed or in effect at the time the lessor would otherwise be
1424	1424	15 subject to the tax imposed by this Act, to a governmental body
1425	1425	16 that has been issued an active tax exemption identification
1426	1426	17 number by the Department under Section 1g of the Retailers'
1427	1427	18 Occupation Tax Act. If the property is leased in a manner that
1428	1428	19 does not qualify for this exemption or is used in any other
1429	1429	20 nonexempt manner, the lessor shall be liable for the tax
1430	1430	21 imposed under this Act or the Use Tax Act, as the case may be,
1431	1431	22 based on the fair market value of the property at the time the
1432	1432	23 nonqualifying use occurs. No lessor shall collect or attempt
1433	1433	24 to collect an amount (however designated) that purports to
1434	1434	25 reimburse that lessor for the tax imposed by this Act or the
1435	1435	26 Use Tax Act, as the case may be, if the tax has not been paid
1436	1436
1437	1437
1438	1438
1439	1439
1440	1440
1441	1441	SB0133 - 39 - LRB104 03841 HLH 13865 b
1442	1442
1443	1443
1444	1444	SB0133- 40 -LRB104 03841 HLH 13865 b SB0133 - 40 - LRB104 03841 HLH 13865 b
1445	1445	SB0133 - 40 - LRB104 03841 HLH 13865 b
1446	1446	1 by the lessor. If a lessor improperly collects any such amount
1447	1447	2 from the lessee, the lessee shall have a legal right to claim a
1448	1448	3 refund of that amount from the lessor. If, however, that
1449	1449	4 amount is not refunded to the lessee for any reason, the lessor
1450	1450	5 is liable to pay that amount to the Department. This paragraph
1451	1451	6 is exempt from the provisions of Section 3-75.
1452	1452	7 (26) Beginning January 1, 2008, tangible personal property
1453	1453	8 used in the construction or maintenance of a community water
1454	1454	9 supply, as defined under Section 3.145 of the Environmental
1455	1455	10 Protection Act, that is operated by a not-for-profit
1456	1456	11 corporation that holds a valid water supply permit issued
1457	1457	12 under Title IV of the Environmental Protection Act. This
1458	1458	13 paragraph is exempt from the provisions of Section 3-75.
1459	1459	14 (27) Beginning January 1, 2010 and continuing through
1460	1460	15 December 31, 2029, materials, parts, equipment, components,
1461	1461	16 and furnishings incorporated into or upon an aircraft as part
1462	1462	17 of the modification, refurbishment, completion, replacement,
1463	1463	18 repair, or maintenance of the aircraft. This exemption
1464	1464	19 includes consumable supplies used in the modification,
1465	1465	20 refurbishment, completion, replacement, repair, and
1466	1466	21 maintenance of aircraft. However, until January 1, 2024, this
1467	1467	22 exemption excludes any materials, parts, equipment,
1468	1468	23 components, and consumable supplies used in the modification,
1469	1469	24 replacement, repair, and maintenance of aircraft engines or
1470	1470	25 power plants, whether such engines or power plants are
1471	1471	26 installed or uninstalled upon any such aircraft. "Consumable
1472	1472
1473	1473
1474	1474
1475	1475
1476	1476
1477	1477	SB0133 - 40 - LRB104 03841 HLH 13865 b
1478	1478
1479	1479
1480	1480	SB0133- 41 -LRB104 03841 HLH 13865 b SB0133 - 41 - LRB104 03841 HLH 13865 b
1481	1481	SB0133 - 41 - LRB104 03841 HLH 13865 b
1482	1482	1 supplies" include, but are not limited to, adhesive, tape,
1483	1483	2 sandpaper, general purpose lubricants, cleaning solution,
1484	1484	3 latex gloves, and protective films.
1485	1485	4 Beginning January 1, 2010 and continuing through December
1486	1486	5 31, 2023, this exemption applies only to the use of qualifying
1487	1487	6 tangible personal property transferred incident to the
1488	1488	7 modification, refurbishment, completion, replacement, repair,
1489	1489	8 or maintenance of aircraft by persons who (i) hold an Air
1490	1490	9 Agency Certificate and are empowered to operate an approved
1491	1491	10 repair station by the Federal Aviation Administration, (ii)
1492	1492	11 have a Class IV Rating, and (iii) conduct operations in
1493	1493	12 accordance with Part 145 of the Federal Aviation Regulations.
1494	1494	13 From January 1, 2024 through December 31, 2029, this exemption
1495	1495	14 applies only to the use of qualifying tangible personal
1496	1496	15 property transferred incident to: (A) the modification,
1497	1497	16 refurbishment, completion, repair, replacement, or maintenance
1498	1498	17 of an aircraft by persons who (i) hold an Air Agency
1499	1499	18 Certificate and are empowered to operate an approved repair
1500	1500	19 station by the Federal Aviation Administration, (ii) have a
1501	1501	20 Class IV Rating, and (iii) conduct operations in accordance
1502	1502	21 with Part 145 of the Federal Aviation Regulations; and (B) the
1503	1503	22 modification, replacement, repair, and maintenance of aircraft
1504	1504	23 engines or power plants without regard to whether or not those
1505	1505	24 persons meet the qualifications of item (A).
1506	1506	25 The exemption does not include aircraft operated by a
1507	1507	26 commercial air carrier providing scheduled passenger air
1508	1508
1509	1509
1510	1510
1511	1511
1512	1512
1513	1513	SB0133 - 41 - LRB104 03841 HLH 13865 b
1514	1514
1515	1515
1516	1516	SB0133- 42 -LRB104 03841 HLH 13865 b SB0133 - 42 - LRB104 03841 HLH 13865 b
1517	1517	SB0133 - 42 - LRB104 03841 HLH 13865 b
1518	1518	1 service pursuant to authority issued under Part 121 or Part
1519	1519	2 129 of the Federal Aviation Regulations. The changes made to
1520	1520	3 this paragraph (27) by Public Act 98-534 are declarative of
1521	1521	4 existing law. It is the intent of the General Assembly that the
1522	1522	5 exemption under this paragraph (27) applies continuously from
1523	1523	6 January 1, 2010 through December 31, 2024; however, no claim
1524	1524	7 for credit or refund is allowed for taxes paid as a result of
1525	1525	8 the disallowance of this exemption on or after January 1, 2015
1526	1526	9 and prior to February 5, 2020 (the effective date of Public Act
1527	1527	10 101-629).
1528	1528	11 (28) Tangible personal property purchased by a
1529	1529	12 public-facilities corporation, as described in Section
1530	1530	13 11-65-10 of the Illinois Municipal Code, for purposes of
1531	1531	14 constructing or furnishing a municipal convention hall, but
1532	1532	15 only if the legal title to the municipal convention hall is
1533	1533	16 transferred to the municipality without any further
1534	1534	17 consideration by or on behalf of the municipality at the time
1535	1535	18 of the completion of the municipal convention hall or upon the
1536	1536	19 retirement or redemption of any bonds or other debt
1537	1537	20 instruments issued by the public-facilities corporation in
1538	1538	21 connection with the development of the municipal convention
1539	1539	22 hall. This exemption includes existing public-facilities
1540	1540	23 corporations as provided in Section 11-65-25 of the Illinois
1541	1541	24 Municipal Code. This paragraph is exempt from the provisions
1542	1542	25 of Section 3-75.
1543	1543	26 (29) Beginning January 1, 2017 and through December 31,
1544	1544
1545	1545
1546	1546
1547	1547
1548	1548
1549	1549	SB0133 - 42 - LRB104 03841 HLH 13865 b
1550	1550
1551	1551
1552	1552	SB0133- 43 -LRB104 03841 HLH 13865 b SB0133 - 43 - LRB104 03841 HLH 13865 b
1553	1553	SB0133 - 43 - LRB104 03841 HLH 13865 b
1554	1554	1 2026, menstrual pads, tampons, and menstrual cups.
1555	1555	2 (30) Tangible personal property transferred to a purchaser
1556	1556	3 who is exempt from the tax imposed by this Act by operation of
1557	1557	4 federal law. This paragraph is exempt from the provisions of
1558	1558	5 Section 3-75.
1559	1559	6 (31) Qualified tangible personal property used in the
1560	1560	7 construction or operation of a data center that has been
1561	1561	8 granted a certificate of exemption by the Department of
1562	1562	9 Commerce and Economic Opportunity, whether that tangible
1563	1563	10 personal property is purchased by the owner, operator, or
1564	1564	11 tenant of the data center or by a contractor or subcontractor
1565	1565	12 of the owner, operator, or tenant. Data centers that would
1566	1566	13 have qualified for a certificate of exemption prior to January
1567	1567	14 1, 2020 had Public Act 101-31 been in effect, may apply for and
1568	1568	15 obtain an exemption for subsequent purchases of computer
1569	1569	16 equipment or enabling software purchased or leased to upgrade,
1570	1570	17 supplement, or replace computer equipment or enabling software
1571	1571	18 purchased or leased in the original investment that would have
1572	1572	19 qualified.
1573	1573	20 The Department of Commerce and Economic Opportunity shall
1574	1574	21 grant a certificate of exemption under this item (31) to
1575	1575	22 qualified data centers as defined by Section 605-1025 of the
1576	1576	23 Department of Commerce and Economic Opportunity Law of the
1577	1577	24 Civil Administrative Code of Illinois.
1578	1578	25 For the purposes of this item (31):
1579	1579	26 "Data center" means a building or a series of
1580	1580
1581	1581
1582	1582
1583	1583
1584	1584
1585	1585	SB0133 - 43 - LRB104 03841 HLH 13865 b
1586	1586
1587	1587
1588	1588	SB0133- 44 -LRB104 03841 HLH 13865 b SB0133 - 44 - LRB104 03841 HLH 13865 b
1589	1589	SB0133 - 44 - LRB104 03841 HLH 13865 b
1590	1590	1 buildings rehabilitated or constructed to house working
1591	1591	2 servers in one physical location or multiple sites within
1592	1592	3 the State of Illinois.
1593	1593	4 "Qualified tangible personal property" means:
1594	1594	5 electrical systems and equipment; climate control and
1595	1595	6 chilling equipment and systems; mechanical systems and
1596	1596	7 equipment; monitoring and secure systems; emergency
1597	1597	8 generators; hardware; computers; servers; data storage
1598	1598	9 devices; network connectivity equipment; racks; cabinets;
1599	1599	10 telecommunications cabling infrastructure; raised floor
1600	1600	11 systems; peripheral components or systems; software;
1601	1601	12 mechanical, electrical, or plumbing systems; battery
1602	1602	13 systems; cooling systems and towers; temperature control
1603	1603	14 systems; other cabling; and other data center
1604	1604	15 infrastructure equipment and systems necessary to operate
1605	1605	16 qualified tangible personal property, including fixtures;
1606	1606	17 and component parts of any of the foregoing, including
1607	1607	18 installation, maintenance, repair, refurbishment, and
1608	1608	19 replacement of qualified tangible personal property to
1609	1609	20 generate, transform, transmit, distribute, or manage
1610	1610	21 electricity necessary to operate qualified tangible
1611	1611	22 personal property; and all other tangible personal
1612	1612	23 property that is essential to the operations of a computer
1613	1613	24 data center. The term "qualified tangible personal
1614	1614	25 property" also includes building materials physically
1615	1615	26 incorporated into the qualifying data center. To document
1616	1616
1617	1617
1618	1618
1619	1619
1620	1620
1621	1621	SB0133 - 44 - LRB104 03841 HLH 13865 b
1622	1622
1623	1623
1624	1624	SB0133- 45 -LRB104 03841 HLH 13865 b SB0133 - 45 - LRB104 03841 HLH 13865 b
1625	1625	SB0133 - 45 - LRB104 03841 HLH 13865 b
1626	1626	1 the exemption allowed under this Section, the retailer
1627	1627	2 must obtain from the purchaser a copy of the certificate
1628	1628	3 of eligibility issued by the Department of Commerce and
1629	1629	4 Economic Opportunity.
1630	1630	5 This item (31) is exempt from the provisions of Section
1631	1631	6 3-75.
1632	1632	7 (32) Beginning July 1, 2022, breast pumps, breast pump
1633	1633	8 collection and storage supplies, and breast pump kits. This
1634	1634	9 item (32) is exempt from the provisions of Section 3-75. As
1635	1635	10 used in this item (32):
1636	1636	11 "Breast pump" means an electrically controlled or
1637	1637	12 manually controlled pump device designed or marketed to be
1638	1638	13 used to express milk from a human breast during lactation,
1639	1639	14 including the pump device and any battery, AC adapter, or
1640	1640	15 other power supply unit that is used to power the pump
1641	1641	16 device and is packaged and sold with the pump device at the
1642	1642	17 time of sale.
1643	1643	18 "Breast pump collection and storage supplies" means
1644	1644	19 items of tangible personal property designed or marketed
1645	1645	20 to be used in conjunction with a breast pump to collect
1646	1646	21 milk expressed from a human breast and to store collected
1647	1647	22 milk until it is ready for consumption.
1648	1648	23 "Breast pump collection and storage supplies"
1649	1649	24 includes, but is not limited to: breast shields and breast
1650	1650	25 shield connectors; breast pump tubes and tubing adapters;
1651	1651	26 breast pump valves and membranes; backflow protectors and
1652	1652
1653	1653
1654	1654
1655	1655
1656	1656
1657	1657	SB0133 - 45 - LRB104 03841 HLH 13865 b
1658	1658
1659	1659
1660	1660	SB0133- 46 -LRB104 03841 HLH 13865 b SB0133 - 46 - LRB104 03841 HLH 13865 b
1661	1661	SB0133 - 46 - LRB104 03841 HLH 13865 b
1662	1662	1 backflow protector adaptors; bottles and bottle caps
1663	1663	2 specific to the operation of the breast pump; and breast
1664	1664	3 milk storage bags.
1665	1665	4 "Breast pump collection and storage supplies" does not
1666	1666	5 include: (1) bottles and bottle caps not specific to the
1667	1667	6 operation of the breast pump; (2) breast pump travel bags
1668	1668	7 and other similar carrying accessories, including ice
1669	1669	8 packs, labels, and other similar products; (3) breast pump
1670	1670	9 cleaning supplies; (4) nursing bras, bra pads, breast
1671	1671	10 shells, and other similar products; and (5) creams,
1672	1672	11 ointments, and other similar products that relieve
1673	1673	12 breastfeeding-related symptoms or conditions of the
1674	1674	13 breasts or nipples, unless sold as part of a breast pump
1675	1675	14 kit that is pre-packaged by the breast pump manufacturer
1676	1676	15 or distributor.
1677	1677	16 "Breast pump kit" means a kit that: (1) contains no
1678	1678	17 more than a breast pump, breast pump collection and
1679	1679	18 storage supplies, a rechargeable battery for operating the
1680	1680	19 breast pump, a breastmilk cooler, bottle stands, ice
1681	1681	20 packs, and a breast pump carrying case; and (2) is
1682	1682	21 pre-packaged as a breast pump kit by the breast pump
1683	1683	22 manufacturer or distributor.
1684	1684	23 (33) Tangible personal property sold by or on behalf of
1685	1685	24 the State Treasurer pursuant to the Revised Uniform Unclaimed
1686	1686	25 Property Act. This item (33) is exempt from the provisions of
1687	1687	26 Section 3-75.
1688	1688
1689	1689
1690	1690
1691	1691
1692	1692
1693	1693	SB0133 - 46 - LRB104 03841 HLH 13865 b
1694	1694
1695	1695
1696	1696	SB0133- 47 -LRB104 03841 HLH 13865 b SB0133 - 47 - LRB104 03841 HLH 13865 b
1697	1697	SB0133 - 47 - LRB104 03841 HLH 13865 b
1698	1698	1 (34) Beginning on January 1, 2024, tangible personal
1699	1699	2 property purchased by an active duty member of the armed
1700	1700	3 forces of the United States who presents valid military
1701	1701	4 identification and purchases the property using a form of
1702	1702	5 payment where the federal government is the payor. The member
1703	1703	6 of the armed forces must complete, at the point of sale, a form
1704	1704	7 prescribed by the Department of Revenue documenting that the
1705	1705	8 transaction is eligible for the exemption under this
1706	1706	9 paragraph. Retailers must keep the form as documentation of
1707	1707	10 the exemption in their records for a period of not less than 6
1708	1708	11 years. "Armed forces of the United States" means the United
1709	1709	12 States Army, Navy, Air Force, Space Force, Marine Corps, or
1710	1710	13 Coast Guard. This paragraph is exempt from the provisions of
1711	1711	14 Section 3-75.
1712	1712	15 (35) Beginning July 1, 2024, home-delivered meals provided
1713	1713	16 to Medicare or Medicaid recipients when payment is made by an
1714	1714	17 intermediary, such as a Medicare Administrative Contractor, a
1715	1715	18 Managed Care Organization, or a Medicare Advantage
1716	1716	19 Organization, pursuant to a government contract. This
1717	1717	20 paragraph (35) is exempt from the provisions of Section 3-75.
1718	1718	21 (36) (35) Beginning on January 1, 2026, as further defined
1719	1719	22 in Section 3-10, food prepared for immediate consumption and
1720	1720	23 transferred incident to a sale of service subject to this Act
1721	1721	24 or the Service Occupation Tax Act by an entity licensed under
1722	1722	25 the Hospital Licensing Act, the Nursing Home Care Act, the
1723	1723	26 Assisted Living and Shared Housing Act, the ID/DD Community
1724	1724
1725	1725
1726	1726
1727	1727
1728	1728
1729	1729	SB0133 - 47 - LRB104 03841 HLH 13865 b
1730	1730
1731	1731
1732	1732	SB0133- 48 -LRB104 03841 HLH 13865 b SB0133 - 48 - LRB104 03841 HLH 13865 b
1733	1733	SB0133 - 48 - LRB104 03841 HLH 13865 b
1734	1734	1 Care Act, the MC/DD Act, the Specialized Mental Health
1735	1735	2 Rehabilitation Act of 2013, or the Child Care Act of 1969, or
1736	1736	3 by an entity that holds a permit issued pursuant to the Life
1737	1737	4 Care Facilities Act. This item (36) (35) is exempt from the
1738	1738	5 provisions of Section 3-75.
1739	1739	6 (37) (36) Beginning on January 1, 2026, as further defined
1740	1740	7 in Section 3-10, food for human consumption that is to be
1741	1741	8 consumed off the premises where it is sold (other than
1742	1742	9 alcoholic beverages, food consisting of or infused with adult
1743	1743	10 use cannabis, soft drinks, candy, and food that has been
1744	1744	11 prepared for immediate consumption). This item (37) (36) is
1745	1745	12 exempt from the provisions of Section 3-75.
1746	1746	13 (38) (35) Use by a lessee of the following leased tangible
1747	1747	14 personal property:
1748	1748	15 (1) software transferred subject to a license that
1749	1749	16 meets the following requirements:
1750	1750	17 (A) it is evidenced by a written agreement signed
1751	1751	18 by the licensor and the customer;
1752	1752	19 (i) an electronic agreement in which the
1753	1753	20 customer accepts the license by means of an
1754	1754	21 electronic signature that is verifiable and can be
1755	1755	22 authenticated and is attached to or made part of
1756	1756	23 the license will comply with this requirement;
1757	1757	24 (ii) a license agreement in which the customer
1758	1758	25 electronically accepts the terms by clicking "I
1759	1759	26 agree" does not comply with this requirement;
1760	1760
1761	1761
1762	1762
1763	1763
1764	1764
1765	1765	SB0133 - 48 - LRB104 03841 HLH 13865 b
1766	1766
1767	1767
1768	1768	SB0133- 49 -LRB104 03841 HLH 13865 b SB0133 - 49 - LRB104 03841 HLH 13865 b
1769	1769	SB0133 - 49 - LRB104 03841 HLH 13865 b
1770	1770	1 (B) it restricts the customer's duplication and
1771	1771	2 use of the software;
1772	1772	3 (C) it prohibits the customer from licensing,
1773	1773	4 sublicensing, or transferring the software to a third
1774	1774	5 party (except to a related party) without the
1775	1775	6 permission and continued control of the licensor;
1776	1776	7 (D) the licensor has a policy of providing another
1777	1777	8 copy at minimal or no charge if the customer loses or
1778	1778	9 damages the software, or of permitting the licensee to
1779	1779	10 make and keep an archival copy, and such policy is
1780	1780	11 either stated in the license agreement, supported by
1781	1781	12 the licensor's books and records, or supported by a
1782	1782	13 notarized statement made under penalties of perjury by
1783	1783	14 the licensor; and
1784	1784	15 (E) the customer must destroy or return all copies
1785	1785	16 of the software to the licensor at the end of the
1786	1786	17 license period; this provision is deemed to be met, in
1787	1787	18 the case of a perpetual license, without being set
1788	1788	19 forth in the license agreement; and
1789	1789	20 (2) property that is subject to a tax on lease
1790	1790	21 receipts imposed by a home rule unit of local government
1791	1791	22 if the ordinance imposing that tax was adopted prior to
1792	1792	23 January 1, 2023.
1793	1793	24 (39) A motor vehicle of the first division, as defined in
1794	1794	25 Section 1-146 of the Illinois Vehicle Code, that is registered
1795	1795	26 in the State to an Illinois resident who acquired the vehicle
1796	1796
1797	1797
1798	1798
1799	1799
1800	1800
1801	1801	SB0133 - 49 - LRB104 03841 HLH 13865 b
1802	1802
1803	1803
1804	1804	SB0133- 50 -LRB104 03841 HLH 13865 b SB0133 - 50 - LRB104 03841 HLH 13865 b
1805	1805	SB0133 - 50 - LRB104 03841 HLH 13865 b
1806	1806	1 while the Illinois resident was stationed outside of this
1807	1807	2 State as an active duty member of the military. This item (39)
1808	1808	3 is exempt from the provisions of Section 3-75.
1809	1809	4 As used in this item (39):
1810	1810	5 "Active duty member of the military" means a service
1811	1811	6 member who undertakes any full-time military training or
1812	1812	7 full-time military duty, no matter how described under federal
1813	1813	8 or State law, for which a service member is ordered to report
1814	1814	9 by the President, by the Governor of a state, commonwealth, or
1815	1815	10 territory of the United States, by an act of Congress, or by
1816	1816	11 any other appropriate military authority.
1817	1817	12 "Illinois resident" means an individual who meets the
1818	1818	13 definition of "resident" under subparagraph (A) of paragraph
1819	1819	14 (20) of subsection (a) of Section 1501 of the Illinois Income
1820	1820	15 Tax Act.
1821	1821	16 "Service member" means a person who is a member of any
1822	1822	17 component of the United States Armed Forces or the National
1823	1823	18 Guard of any state, the District of Columbia, a commonwealth,
1824	1824	19 or a territory of the United States.
1825	1825	20 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
1826	1826	21 Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1827	1827	22 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
1828	1828	23 Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
1829	1829	24 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
1830	1830	25 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
1831	1831	26 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
1832	1832
1833	1833
1834	1834
1835	1835
1836	1836
1837	1837	SB0133 - 50 - LRB104 03841 HLH 13865 b
1838	1838
1839	1839
1840	1840	SB0133- 51 -LRB104 03841 HLH 13865 b SB0133 - 51 - LRB104 03841 HLH 13865 b
1841	1841	SB0133 - 51 - LRB104 03841 HLH 13865 b
1842	1842	1 eff. 8-9-24; revised 11-26-24.)
1843	1843	2 Section 15. The Service Occupation Tax Act is amended by
1844	1844	3 changing Section 3-5 as follows:
1845	1845	4 (35 ILCS 115/3-5)
1846	1846	5 Sec. 3-5. Exemptions. The following tangible personal
1847	1847	6 property is exempt from the tax imposed by this Act:
1848	1848	7 (1) Personal property sold by a corporation, society,
1849	1849	8 association, foundation, institution, or organization, other
1850	1850	9 than a limited liability company, that is organized and
1851	1851	10 operated as a not-for-profit service enterprise for the
1852	1852	11 benefit of persons 65 years of age or older if the personal
1853	1853	12 property was not purchased by the enterprise for the purpose
1854	1854	13 of resale by the enterprise.
1855	1855	14 (2) Personal property purchased by a not-for-profit
1856	1856	15 Illinois county fair association for use in conducting,
1857	1857	16 operating, or promoting the county fair.
1858	1858	17 (3) Personal property purchased by any not-for-profit arts
1859	1859	18 or cultural organization that establishes, by proof required
1860	1860	19 by the Department by rule, that it has received an exemption
1861	1861	20 under Section 501(c)(3) of the Internal Revenue Code and that
1862	1862	21 is organized and operated primarily for the presentation or
1863	1863	22 support of arts or cultural programming, activities, or
1864	1864	23 services. These organizations include, but are not limited to,
1865	1865	24 music and dramatic arts organizations such as symphony
1866	1866
1867	1867
1868	1868
1869	1869
1870	1870
1871	1871	SB0133 - 51 - LRB104 03841 HLH 13865 b
1872	1872
1873	1873
1874	1874	SB0133- 52 -LRB104 03841 HLH 13865 b SB0133 - 52 - LRB104 03841 HLH 13865 b
1875	1875	SB0133 - 52 - LRB104 03841 HLH 13865 b
1876	1876	1 orchestras and theatrical groups, arts and cultural service
1877	1877	2 organizations, local arts councils, visual arts organizations,
1878	1878	3 and media arts organizations. On and after July 1, 2001 (the
1879	1879	4 effective date of Public Act 92-35), however, an entity
1880	1880	5 otherwise eligible for this exemption shall not make tax-free
1881	1881	6 purchases unless it has an active identification number issued
1882	1882	7 by the Department.
1883	1883	8 (4) Legal tender, currency, medallions, or gold or silver
1884	1884	9 coinage issued by the State of Illinois, the government of the
1885	1885	10 United States of America, or the government of any foreign
1886	1886	11 country, and bullion.
1887	1887	12 (5) Until July 1, 2003 and beginning again on September 1,
1888	1888	13 2004 through August 30, 2014, graphic arts machinery and
1889	1889	14 equipment, including repair and replacement parts, both new
1890	1890	15 and used, and including that manufactured on special order or
1891	1891	16 purchased for lease, certified by the purchaser to be used
1892	1892	17 primarily for graphic arts production. Equipment includes
1893	1893	18 chemicals or chemicals acting as catalysts but only if the
1894	1894	19 chemicals or chemicals acting as catalysts effect a direct and
1895	1895	20 immediate change upon a graphic arts product. Beginning on
1896	1896	21 July 1, 2017, graphic arts machinery and equipment is included
1897	1897	22 in the manufacturing and assembling machinery and equipment
1898	1898	23 exemption under Section 2 of this Act.
1899	1899	24 (6) Personal property sold by a teacher-sponsored student
1900	1900	25 organization affiliated with an elementary or secondary school
1901	1901	26 located in Illinois.
1902	1902
1903	1903
1904	1904
1905	1905
1906	1906
1907	1907	SB0133 - 52 - LRB104 03841 HLH 13865 b
1908	1908
1909	1909
1910	1910	SB0133- 53 -LRB104 03841 HLH 13865 b SB0133 - 53 - LRB104 03841 HLH 13865 b
1911	1911	SB0133 - 53 - LRB104 03841 HLH 13865 b
1912	1912	1 (7) Farm machinery and equipment, both new and used,
1913	1913	2 including that manufactured on special order, certified by the
1914	1914	3 purchaser to be used primarily for production agriculture or
1915	1915	4 State or federal agricultural programs, including individual
1916	1916	5 replacement parts for the machinery and equipment, including
1917	1917	6 machinery and equipment purchased for lease, and including
1918	1918	7 implements of husbandry defined in Section 1-130 of the
1919	1919	8 Illinois Vehicle Code, farm machinery and agricultural
1920	1920	9 chemical and fertilizer spreaders, and nurse wagons required
1921	1921	10 to be registered under Section 3-809 of the Illinois Vehicle
1922	1922	11 Code, but excluding other motor vehicles required to be
1923	1923	12 registered under the Illinois Vehicle Code. Horticultural
1924	1924	13 polyhouses or hoop houses used for propagating, growing, or
1925	1925	14 overwintering plants shall be considered farm machinery and
1926	1926	15 equipment under this item (7). Agricultural chemical tender
1927	1927	16 tanks and dry boxes shall include units sold separately from a
1928	1928	17 motor vehicle required to be licensed and units sold mounted
1929	1929	18 on a motor vehicle required to be licensed if the selling price
1930	1930	19 of the tender is separately stated.
1931	1931	20 Farm machinery and equipment shall include precision
1932	1932	21 farming equipment that is installed or purchased to be
1933	1933	22 installed on farm machinery and equipment, including, but not
1934	1934	23 limited to, tractors, harvesters, sprayers, planters, seeders,
1935	1935	24 or spreaders. Precision farming equipment includes, but is not
1936	1936	25 limited to, soil testing sensors, computers, monitors,
1937	1937	26 software, global positioning and mapping systems, and other
1938	1938
1939	1939
1940	1940
1941	1941
1942	1942
1943	1943	SB0133 - 53 - LRB104 03841 HLH 13865 b
1944	1944
1945	1945
1946	1946	SB0133- 54 -LRB104 03841 HLH 13865 b SB0133 - 54 - LRB104 03841 HLH 13865 b
1947	1947	SB0133 - 54 - LRB104 03841 HLH 13865 b
1948	1948	1 such equipment.
1949	1949	2 Farm machinery and equipment also includes computers,
1950	1950	3 sensors, software, and related equipment used primarily in the
1951	1951	4 computer-assisted operation of production agriculture
1952	1952	5 facilities, equipment, and activities such as, but not limited
1953	1953	6 to, the collection, monitoring, and correlation of animal and
1954	1954	7 crop data for the purpose of formulating animal diets and
1955	1955	8 agricultural chemicals.
1956	1956	9 Beginning on January 1, 2024, farm machinery and equipment
1957	1957	10 also includes electrical power generation equipment used
1958	1958	11 primarily for production agriculture.
1959	1959	12 This item (7) is exempt from the provisions of Section
1960	1960	13 3-55.
1961	1961	14 (8) Until June 30, 2013, fuel and petroleum products sold
1962	1962	15 to or used by an air common carrier, certified by the carrier
1963	1963	16 to be used for consumption, shipment, or storage in the
1964	1964	17 conduct of its business as an air common carrier, for a flight
1965	1965	18 destined for or returning from a location or locations outside
1966	1966	19 the United States without regard to previous or subsequent
1967	1967	20 domestic stopovers.
1968	1968	21 Beginning July 1, 2013, fuel and petroleum products sold
1969	1969	22 to or used by an air carrier, certified by the carrier to be
1970	1970	23 used for consumption, shipment, or storage in the conduct of
1971	1971	24 its business as an air common carrier, for a flight that (i) is
1972	1972	25 engaged in foreign trade or is engaged in trade between the
1973	1973	26 United States and any of its possessions and (ii) transports
1974	1974
1975	1975
1976	1976
1977	1977
1978	1978
1979	1979	SB0133 - 54 - LRB104 03841 HLH 13865 b
1980	1980
1981	1981
1982	1982	SB0133- 55 -LRB104 03841 HLH 13865 b SB0133 - 55 - LRB104 03841 HLH 13865 b
1983	1983	SB0133 - 55 - LRB104 03841 HLH 13865 b
1984	1984	1 at least one individual or package for hire from the city of
1985	1985	2 origination to the city of final destination on the same
1986	1986	3 aircraft, without regard to a change in the flight number of
1987	1987	4 that aircraft.
1988	1988	5 (9) Proceeds of mandatory service charges separately
1989	1989	6 stated on customers' bills for the purchase and consumption of
1990	1990	7 food and beverages, to the extent that the proceeds of the
1991	1991	8 service charge are in fact turned over as tips or as a
1992	1992	9 substitute for tips to the employees who participate directly
1993	1993	10 in preparing, serving, hosting or cleaning up the food or
1994	1994	11 beverage function with respect to which the service charge is
1995	1995	12 imposed.
1996	1996	13 (10) Until July 1, 2003, oil field exploration, drilling,
1997	1997	14 and production equipment, including (i) rigs and parts of
1998	1998	15 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
1999	1999	16 pipe and tubular goods, including casing and drill strings,
2000	2000	17 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2001	2001	18 lines, (v) any individual replacement part for oil field
2002	2002	19 exploration, drilling, and production equipment, and (vi)
2003	2003	20 machinery and equipment purchased for lease; but excluding
2004	2004	21 motor vehicles required to be registered under the Illinois
2005	2005	22 Vehicle Code.
2006	2006	23 (11) Photoprocessing machinery and equipment, including
2007	2007	24 repair and replacement parts, both new and used, including
2008	2008	25 that manufactured on special order, certified by the purchaser
2009	2009	26 to be used primarily for photoprocessing, and including
2010	2010
2011	2011
2012	2012
2013	2013
2014	2014
2015	2015	SB0133 - 55 - LRB104 03841 HLH 13865 b
2016	2016
2017	2017
2018	2018	SB0133- 56 -LRB104 03841 HLH 13865 b SB0133 - 56 - LRB104 03841 HLH 13865 b
2019	2019	SB0133 - 56 - LRB104 03841 HLH 13865 b
2020	2020	1 photoprocessing machinery and equipment purchased for lease.
2021	2021	2 (12) Until July 1, 2028, coal and aggregate exploration,
2022	2022	3 mining, off-highway hauling, processing, maintenance, and
2023	2023	4 reclamation equipment, including replacement parts and
2024	2024	5 equipment, and including equipment purchased for lease, but
2025	2025	6 excluding motor vehicles required to be registered under the
2026	2026	7 Illinois Vehicle Code. The changes made to this Section by
2027	2027	8 Public Act 97-767 apply on and after July 1, 2003, but no claim
2028	2028	9 for credit or refund is allowed on or after August 16, 2013
2029	2029	10 (the effective date of Public Act 98-456) for such taxes paid
2030	2030	11 during the period beginning July 1, 2003 and ending on August
2031	2031	12 16, 2013 (the effective date of Public Act 98-456).
2032	2032	13 (13) Beginning January 1, 1992 and through June 30, 2016,
2033	2033	14 food for human consumption that is to be consumed off the
2034	2034	15 premises where it is sold (other than alcoholic beverages,
2035	2035	16 soft drinks and food that has been prepared for immediate
2036	2036	17 consumption) and prescription and non-prescription medicines,
2037	2037	18 drugs, medical appliances, and insulin, urine testing
2038	2038	19 materials, syringes, and needles used by diabetics, for human
2039	2039	20 use, when purchased for use by a person receiving medical
2040	2040	21 assistance under Article V of the Illinois Public Aid Code who
2041	2041	22 resides in a licensed long-term care facility, as defined in
2042	2042	23 the Nursing Home Care Act, or in a licensed facility as defined
2043	2043	24 in the ID/DD Community Care Act, the MC/DD Act, or the
2044	2044	25 Specialized Mental Health Rehabilitation Act of 2013.
2045	2045	26 (14) Semen used for artificial insemination of livestock
2046	2046
2047	2047
2048	2048
2049	2049
2050	2050
2051	2051	SB0133 - 56 - LRB104 03841 HLH 13865 b
2052	2052
2053	2053
2054	2054	SB0133- 57 -LRB104 03841 HLH 13865 b SB0133 - 57 - LRB104 03841 HLH 13865 b
2055	2055	SB0133 - 57 - LRB104 03841 HLH 13865 b
2056	2056	1 for direct agricultural production.
2057	2057	2 (15) Horses, or interests in horses, registered with and
2058	2058	3 meeting the requirements of any of the Arabian Horse Club
2059	2059	4 Registry of America, Appaloosa Horse Club, American Quarter
2060	2060	5 Horse Association, United States Trotting Association, or
2061	2061	6 Jockey Club, as appropriate, used for purposes of breeding or
2062	2062	7 racing for prizes. This item (15) is exempt from the
2063	2063	8 provisions of Section 3-55, and the exemption provided for
2064	2064	9 under this item (15) applies for all periods beginning May 30,
2065	2065	10 1995, but no claim for credit or refund is allowed on or after
2066	2066	11 January 1, 2008 (the effective date of Public Act 95-88) for
2067	2067	12 such taxes paid during the period beginning May 30, 2000 and
2068	2068	13 ending on January 1, 2008 (the effective date of Public Act
2069	2069	14 95-88).
2070	2070	15 (16) Computers and communications equipment utilized for
2071	2071	16 any hospital purpose and equipment used in the diagnosis,
2072	2072	17 analysis, or treatment of hospital patients sold to a lessor
2073	2073	18 who leases the equipment, under a lease of one year or longer
2074	2074	19 executed or in effect at the time of the purchase, to a
2075	2075	20 hospital that has been issued an active tax exemption
2076	2076	21 identification number by the Department under Section 1g of
2077	2077	22 the Retailers' Occupation Tax Act.
2078	2078	23 (17) Personal property sold to a lessor who leases the
2079	2079	24 property, under a lease of one year or longer executed or in
2080	2080	25 effect at the time of the purchase, to a governmental body that
2081	2081	26 has been issued an active tax exemption identification number
2082	2082
2083	2083
2084	2084
2085	2085
2086	2086
2087	2087	SB0133 - 57 - LRB104 03841 HLH 13865 b
2088	2088
2089	2089
2090	2090	SB0133- 58 -LRB104 03841 HLH 13865 b SB0133 - 58 - LRB104 03841 HLH 13865 b
2091	2091	SB0133 - 58 - LRB104 03841 HLH 13865 b
2092	2092	1 by the Department under Section 1g of the Retailers'
2093	2093	2 Occupation Tax Act.
2094	2094	3 (18) Beginning with taxable years ending on or after
2095	2095	4 December 31, 1995 and ending with taxable years ending on or
2096	2096	5 before December 31, 2004, personal property that is donated
2097	2097	6 for disaster relief to be used in a State or federally declared
2098	2098	7 disaster area in Illinois or bordering Illinois by a
2099	2099	8 manufacturer or retailer that is registered in this State to a
2100	2100	9 corporation, society, association, foundation, or institution
2101	2101	10 that has been issued a sales tax exemption identification
2102	2102	11 number by the Department that assists victims of the disaster
2103	2103	12 who reside within the declared disaster area.
2104	2104	13 (19) Beginning with taxable years ending on or after
2105	2105	14 December 31, 1995 and ending with taxable years ending on or
2106	2106	15 before December 31, 2004, personal property that is used in
2107	2107	16 the performance of infrastructure repairs in this State,
2108	2108	17 including, but not limited to, municipal roads and streets,
2109	2109	18 access roads, bridges, sidewalks, waste disposal systems,
2110	2110	19 water and sewer line extensions, water distribution and
2111	2111	20 purification facilities, storm water drainage and retention
2112	2112	21 facilities, and sewage treatment facilities, resulting from a
2113	2113	22 State or federally declared disaster in Illinois or bordering
2114	2114	23 Illinois when such repairs are initiated on facilities located
2115	2115	24 in the declared disaster area within 6 months after the
2116	2116	25 disaster.
2117	2117	26 (20) Beginning July 1, 1999, game or game birds sold at a
2118	2118
2119	2119
2120	2120
2121	2121
2122	2122
2123	2123	SB0133 - 58 - LRB104 03841 HLH 13865 b
2124	2124
2125	2125
2126	2126	SB0133- 59 -LRB104 03841 HLH 13865 b SB0133 - 59 - LRB104 03841 HLH 13865 b
2127	2127	SB0133 - 59 - LRB104 03841 HLH 13865 b
2128	2128	1 "game breeding and hunting preserve area" as that term is used
2129	2129	2 in the Wildlife Code. This paragraph is exempt from the
2130	2130	3 provisions of Section 3-55.
2131	2131	4 (21) A motor vehicle, as that term is defined in Section
2132	2132	5 1-146 of the Illinois Vehicle Code, that is donated to a
2133	2133	6 corporation, limited liability company, society, association,
2134	2134	7 foundation, or institution that is determined by the
2135	2135	8 Department to be organized and operated exclusively for
2136	2136	9 educational purposes. For purposes of this exemption, "a
2137	2137	10 corporation, limited liability company, society, association,
2138	2138	11 foundation, or institution organized and operated exclusively
2139	2139	12 for educational purposes" means all tax-supported public
2140	2140	13 schools, private schools that offer systematic instruction in
2141	2141	14 useful branches of learning by methods common to public
2142	2142	15 schools and that compare favorably in their scope and
2143	2143	16 intensity with the course of study presented in tax-supported
2144	2144	17 schools, and vocational or technical schools or institutes
2145	2145	18 organized and operated exclusively to provide a course of
2146	2146	19 study of not less than 6 weeks duration and designed to prepare
2147	2147	20 individuals to follow a trade or to pursue a manual,
2148	2148	21 technical, mechanical, industrial, business, or commercial
2149	2149	22 occupation.
2150	2150	23 (22) Beginning January 1, 2000, personal property,
2151	2151	24 including food, purchased through fundraising events for the
2152	2152	25 benefit of a public or private elementary or secondary school,
2153	2153	26 a group of those schools, or one or more school districts if
2154	2154
2155	2155
2156	2156
2157	2157
2158	2158
2159	2159	SB0133 - 59 - LRB104 03841 HLH 13865 b
2160	2160
2161	2161
2162	2162	SB0133- 60 -LRB104 03841 HLH 13865 b SB0133 - 60 - LRB104 03841 HLH 13865 b
2163	2163	SB0133 - 60 - LRB104 03841 HLH 13865 b
2164	2164	1 the events are sponsored by an entity recognized by the school
2165	2165	2 district that consists primarily of volunteers and includes
2166	2166	3 parents and teachers of the school children. This paragraph
2167	2167	4 does not apply to fundraising events (i) for the benefit of
2168	2168	5 private home instruction or (ii) for which the fundraising
2169	2169	6 entity purchases the personal property sold at the events from
2170	2170	7 another individual or entity that sold the property for the
2171	2171	8 purpose of resale by the fundraising entity and that profits
2172	2172	9 from the sale to the fundraising entity. This paragraph is
2173	2173	10 exempt from the provisions of Section 3-55.
2174	2174	11 (23) Beginning January 1, 2000 and through December 31,
2175	2175	12 2001, new or used automatic vending machines that prepare and
2176	2176	13 serve hot food and beverages, including coffee, soup, and
2177	2177	14 other items, and replacement parts for these machines.
2178	2178	15 Beginning January 1, 2002 and through June 30, 2003, machines
2179	2179	16 and parts for machines used in commercial, coin-operated
2180	2180	17 amusement and vending business if a use or occupation tax is
2181	2181	18 paid on the gross receipts derived from the use of the
2182	2182	19 commercial, coin-operated amusement and vending machines. This
2183	2183	20 paragraph is exempt from the provisions of Section 3-55.
2184	2184	21 (24) Beginning on August 2, 2001 (the effective date of
2185	2185	22 Public Act 92-227), computers and communications equipment
2186	2186	23 utilized for any hospital purpose and equipment used in the
2187	2187	24 diagnosis, analysis, or treatment of hospital patients sold to
2188	2188	25 a lessor who leases the equipment, under a lease of one year or
2189	2189	26 longer executed or in effect at the time of the purchase, to a
2190	2190
2191	2191
2192	2192
2193	2193
2194	2194
2195	2195	SB0133 - 60 - LRB104 03841 HLH 13865 b
2196	2196
2197	2197
2198	2198	SB0133- 61 -LRB104 03841 HLH 13865 b SB0133 - 61 - LRB104 03841 HLH 13865 b
2199	2199	SB0133 - 61 - LRB104 03841 HLH 13865 b
2200	2200	1 hospital that has been issued an active tax exemption
2201	2201	2 identification number by the Department under Section 1g of
2202	2202	3 the Retailers' Occupation Tax Act. This paragraph is exempt
2203	2203	4 from the provisions of Section 3-55.
2204	2204	5 (25) Beginning on August 2, 2001 (the effective date of
2205	2205	6 Public Act 92-227), personal property sold to a lessor who
2206	2206	7 leases the property, under a lease of one year or longer
2207	2207	8 executed or in effect at the time of the purchase, to a
2208	2208	9 governmental body that has been issued an active tax exemption
2209	2209	10 identification number by the Department under Section 1g of
2210	2210	11 the Retailers' Occupation Tax Act. This paragraph is exempt
2211	2211	12 from the provisions of Section 3-55.
2212	2212	13 (26) Beginning on January 1, 2002 and through June 30,
2213	2213	14 2016, tangible personal property purchased from an Illinois
2214	2214	15 retailer by a taxpayer engaged in centralized purchasing
2215	2215	16 activities in Illinois who will, upon receipt of the property
2216	2216	17 in Illinois, temporarily store the property in Illinois (i)
2217	2217	18 for the purpose of subsequently transporting it outside this
2218	2218	19 State for use or consumption thereafter solely outside this
2219	2219	20 State or (ii) for the purpose of being processed, fabricated,
2220	2220	21 or manufactured into, attached to, or incorporated into other
2221	2221	22 tangible personal property to be transported outside this
2222	2222	23 State and thereafter used or consumed solely outside this
2223	2223	24 State. The Director of Revenue shall, pursuant to rules
2224	2224	25 adopted in accordance with the Illinois Administrative
2225	2225	26 Procedure Act, issue a permit to any taxpayer in good standing
2226	2226
2227	2227
2228	2228
2229	2229
2230	2230
2231	2231	SB0133 - 61 - LRB104 03841 HLH 13865 b
2232	2232
2233	2233
2234	2234	SB0133- 62 -LRB104 03841 HLH 13865 b SB0133 - 62 - LRB104 03841 HLH 13865 b
2235	2235	SB0133 - 62 - LRB104 03841 HLH 13865 b
2236	2236	1 with the Department who is eligible for the exemption under
2237	2237	2 this paragraph (26). The permit issued under this paragraph
2238	2238	3 (26) shall authorize the holder, to the extent and in the
2239	2239	4 manner specified in the rules adopted under this Act, to
2240	2240	5 purchase tangible personal property from a retailer exempt
2241	2241	6 from the taxes imposed by this Act. Taxpayers shall maintain
2242	2242	7 all necessary books and records to substantiate the use and
2243	2243	8 consumption of all such tangible personal property outside of
2244	2244	9 the State of Illinois.
2245	2245	10 (27) Beginning January 1, 2008, tangible personal property
2246	2246	11 used in the construction or maintenance of a community water
2247	2247	12 supply, as defined under Section 3.145 of the Environmental
2248	2248	13 Protection Act, that is operated by a not-for-profit
2249	2249	14 corporation that holds a valid water supply permit issued
2250	2250	15 under Title IV of the Environmental Protection Act. This
2251	2251	16 paragraph is exempt from the provisions of Section 3-55.
2252	2252	17 (28) Tangible personal property sold to a
2253	2253	18 public-facilities corporation, as described in Section
2254	2254	19 11-65-10 of the Illinois Municipal Code, for purposes of
2255	2255	20 constructing or furnishing a municipal convention hall, but
2256	2256	21 only if the legal title to the municipal convention hall is
2257	2257	22 transferred to the municipality without any further
2258	2258	23 consideration by or on behalf of the municipality at the time
2259	2259	24 of the completion of the municipal convention hall or upon the
2260	2260	25 retirement or redemption of any bonds or other debt
2261	2261	26 instruments issued by the public-facilities corporation in
2262	2262
2263	2263
2264	2264
2265	2265
2266	2266
2267	2267	SB0133 - 62 - LRB104 03841 HLH 13865 b
2268	2268
2269	2269
2270	2270	SB0133- 63 -LRB104 03841 HLH 13865 b SB0133 - 63 - LRB104 03841 HLH 13865 b
2271	2271	SB0133 - 63 - LRB104 03841 HLH 13865 b
2272	2272	1 connection with the development of the municipal convention
2273	2273	2 hall. This exemption includes existing public-facilities
2274	2274	3 corporations as provided in Section 11-65-25 of the Illinois
2275	2275	4 Municipal Code. This paragraph is exempt from the provisions
2276	2276	5 of Section 3-55.
2277	2277	6 (29) Beginning January 1, 2010 and continuing through
2278	2278	7 December 31, 2029, materials, parts, equipment, components,
2279	2279	8 and furnishings incorporated into or upon an aircraft as part
2280	2280	9 of the modification, refurbishment, completion, replacement,
2281	2281	10 repair, or maintenance of the aircraft. This exemption
2282	2282	11 includes consumable supplies used in the modification,
2283	2283	12 refurbishment, completion, replacement, repair, and
2284	2284	13 maintenance of aircraft. However, until January 1, 2024, this
2285	2285	14 exemption excludes any materials, parts, equipment,
2286	2286	15 components, and consumable supplies used in the modification,
2287	2287	16 replacement, repair, and maintenance of aircraft engines or
2288	2288	17 power plants, whether such engines or power plants are
2289	2289	18 installed or uninstalled upon any such aircraft. "Consumable
2290	2290	19 supplies" include, but are not limited to, adhesive, tape,
2291	2291	20 sandpaper, general purpose lubricants, cleaning solution,
2292	2292	21 latex gloves, and protective films.
2293	2293	22 Beginning January 1, 2010 and continuing through December
2294	2294	23 31, 2023, this exemption applies only to the transfer of
2295	2295	24 qualifying tangible personal property incident to the
2296	2296	25 modification, refurbishment, completion, replacement, repair,
2297	2297	26 or maintenance of an aircraft by persons who (i) hold an Air
2298	2298
2299	2299
2300	2300
2301	2301
2302	2302
2303	2303	SB0133 - 63 - LRB104 03841 HLH 13865 b
2304	2304
2305	2305
2306	2306	SB0133- 64 -LRB104 03841 HLH 13865 b SB0133 - 64 - LRB104 03841 HLH 13865 b
2307	2307	SB0133 - 64 - LRB104 03841 HLH 13865 b
2308	2308	1 Agency Certificate and are empowered to operate an approved
2309	2309	2 repair station by the Federal Aviation Administration, (ii)
2310	2310	3 have a Class IV Rating, and (iii) conduct operations in
2311	2311	4 accordance with Part 145 of the Federal Aviation Regulations.
2312	2312	5 The exemption does not include aircraft operated by a
2313	2313	6 commercial air carrier providing scheduled passenger air
2314	2314	7 service pursuant to authority issued under Part 121 or Part
2315	2315	8 129 of the Federal Aviation Regulations. From January 1, 2024
2316	2316	9 through December 31, 2029, this exemption applies only to the
2317	2317	10 transfer of qualifying tangible personal property incident to:
2318	2318	11 (A) the modification, refurbishment, completion, repair,
2319	2319	12 replacement, or maintenance of an aircraft by persons who (i)
2320	2320	13 hold an Air Agency Certificate and are empowered to operate an
2321	2321	14 approved repair station by the Federal Aviation
2322	2322	15 Administration, (ii) have a Class IV Rating, and (iii) conduct
2323	2323	16 operations in accordance with Part 145 of the Federal Aviation
2324	2324	17 Regulations; and (B) the modification, replacement, repair,
2325	2325	18 and maintenance of aircraft engines or power plants without
2326	2326	19 regard to whether or not those persons meet the qualifications
2327	2327	20 of item (A).
2328	2328	21 The changes made to this paragraph (29) by Public Act
2329	2329	22 98-534 are declarative of existing law. It is the intent of the
2330	2330	23 General Assembly that the exemption under this paragraph (29)
2331	2331	24 applies continuously from January 1, 2010 through December 31,
2332	2332	25 2024; however, no claim for credit or refund is allowed for
2333	2333	26 taxes paid as a result of the disallowance of this exemption on
2334	2334
2335	2335
2336	2336
2337	2337
2338	2338
2339	2339	SB0133 - 64 - LRB104 03841 HLH 13865 b
2340	2340
2341	2341
2342	2342	SB0133- 65 -LRB104 03841 HLH 13865 b SB0133 - 65 - LRB104 03841 HLH 13865 b
2343	2343	SB0133 - 65 - LRB104 03841 HLH 13865 b
2344	2344	1 or after January 1, 2015 and prior to February 5, 2020 (the
2345	2345	2 effective date of Public Act 101-629).
2346	2346	3 (30) Beginning January 1, 2017 and through December 31,
2347	2347	4 2026, menstrual pads, tampons, and menstrual cups.
2348	2348	5 (31) Tangible personal property transferred to a purchaser
2349	2349	6 who is exempt from tax by operation of federal law. This
2350	2350	7 paragraph is exempt from the provisions of Section 3-55.
2351	2351	8 (32) Qualified tangible personal property used in the
2352	2352	9 construction or operation of a data center that has been
2353	2353	10 granted a certificate of exemption by the Department of
2354	2354	11 Commerce and Economic Opportunity, whether that tangible
2355	2355	12 personal property is purchased by the owner, operator, or
2356	2356	13 tenant of the data center or by a contractor or subcontractor
2357	2357	14 of the owner, operator, or tenant. Data centers that would
2358	2358	15 have qualified for a certificate of exemption prior to January
2359	2359	16 1, 2020 had Public Act 101-31 been in effect, may apply for and
2360	2360	17 obtain an exemption for subsequent purchases of computer
2361	2361	18 equipment or enabling software purchased or leased to upgrade,
2362	2362	19 supplement, or replace computer equipment or enabling software
2363	2363	20 purchased or leased in the original investment that would have
2364	2364	21 qualified.
2365	2365	22 The Department of Commerce and Economic Opportunity shall
2366	2366	23 grant a certificate of exemption under this item (32) to
2367	2367	24 qualified data centers as defined by Section 605-1025 of the
2368	2368	25 Department of Commerce and Economic Opportunity Law of the
2369	2369	26 Civil Administrative Code of Illinois.
2370	2370
2371	2371
2372	2372
2373	2373
2374	2374
2375	2375	SB0133 - 65 - LRB104 03841 HLH 13865 b
2376	2376
2377	2377
2378	2378	SB0133- 66 -LRB104 03841 HLH 13865 b SB0133 - 66 - LRB104 03841 HLH 13865 b
2379	2379	SB0133 - 66 - LRB104 03841 HLH 13865 b
2380	2380	1 For the purposes of this item (32):
2381	2381	2 "Data center" means a building or a series of
2382	2382	3 buildings rehabilitated or constructed to house working
2383	2383	4 servers in one physical location or multiple sites within
2384	2384	5 the State of Illinois.
2385	2385	6 "Qualified tangible personal property" means:
2386	2386	7 electrical systems and equipment; climate control and
2387	2387	8 chilling equipment and systems; mechanical systems and
2388	2388	9 equipment; monitoring and secure systems; emergency
2389	2389	10 generators; hardware; computers; servers; data storage
2390	2390	11 devices; network connectivity equipment; racks; cabinets;
2391	2391	12 telecommunications cabling infrastructure; raised floor
2392	2392	13 systems; peripheral components or systems; software;
2393	2393	14 mechanical, electrical, or plumbing systems; battery
2394	2394	15 systems; cooling systems and towers; temperature control
2395	2395	16 systems; other cabling; and other data center
2396	2396	17 infrastructure equipment and systems necessary to operate
2397	2397	18 qualified tangible personal property, including fixtures;
2398	2398	19 and component parts of any of the foregoing, including
2399	2399	20 installation, maintenance, repair, refurbishment, and
2400	2400	21 replacement of qualified tangible personal property to
2401	2401	22 generate, transform, transmit, distribute, or manage
2402	2402	23 electricity necessary to operate qualified tangible
2403	2403	24 personal property; and all other tangible personal
2404	2404	25 property that is essential to the operations of a computer
2405	2405	26 data center. The term "qualified tangible personal
2406	2406
2407	2407
2408	2408
2409	2409
2410	2410
2411	2411	SB0133 - 66 - LRB104 03841 HLH 13865 b
2412	2412
2413	2413
2414	2414	SB0133- 67 -LRB104 03841 HLH 13865 b SB0133 - 67 - LRB104 03841 HLH 13865 b
2415	2415	SB0133 - 67 - LRB104 03841 HLH 13865 b
2416	2416	1 property" also includes building materials physically
2417	2417	2 incorporated into the qualifying data center. To document
2418	2418	3 the exemption allowed under this Section, the retailer
2419	2419	4 must obtain from the purchaser a copy of the certificate
2420	2420	5 of eligibility issued by the Department of Commerce and
2421	2421	6 Economic Opportunity.
2422	2422	7 This item (32) is exempt from the provisions of Section
2423	2423	8 3-55.
2424	2424	9 (33) Beginning July 1, 2022, breast pumps, breast pump
2425	2425	10 collection and storage supplies, and breast pump kits. This
2426	2426	11 item (33) is exempt from the provisions of Section 3-55. As
2427	2427	12 used in this item (33):
2428	2428	13 "Breast pump" means an electrically controlled or
2429	2429	14 manually controlled pump device designed or marketed to be
2430	2430	15 used to express milk from a human breast during lactation,
2431	2431	16 including the pump device and any battery, AC adapter, or
2432	2432	17 other power supply unit that is used to power the pump
2433	2433	18 device and is packaged and sold with the pump device at the
2434	2434	19 time of sale.
2435	2435	20 "Breast pump collection and storage supplies" means
2436	2436	21 items of tangible personal property designed or marketed
2437	2437	22 to be used in conjunction with a breast pump to collect
2438	2438	23 milk expressed from a human breast and to store collected
2439	2439	24 milk until it is ready for consumption.
2440	2440	25 "Breast pump collection and storage supplies"
2441	2441	26 includes, but is not limited to: breast shields and breast
2442	2442
2443	2443
2444	2444
2445	2445
2446	2446
2447	2447	SB0133 - 67 - LRB104 03841 HLH 13865 b
2448	2448
2449	2449
2450	2450	SB0133- 68 -LRB104 03841 HLH 13865 b SB0133 - 68 - LRB104 03841 HLH 13865 b
2451	2451	SB0133 - 68 - LRB104 03841 HLH 13865 b
2452	2452	1 shield connectors; breast pump tubes and tubing adapters;
2453	2453	2 breast pump valves and membranes; backflow protectors and
2454	2454	3 backflow protector adaptors; bottles and bottle caps
2455	2455	4 specific to the operation of the breast pump; and breast
2456	2456	5 milk storage bags.
2457	2457	6 "Breast pump collection and storage supplies" does not
2458	2458	7 include: (1) bottles and bottle caps not specific to the
2459	2459	8 operation of the breast pump; (2) breast pump travel bags
2460	2460	9 and other similar carrying accessories, including ice
2461	2461	10 packs, labels, and other similar products; (3) breast pump
2462	2462	11 cleaning supplies; (4) nursing bras, bra pads, breast
2463	2463	12 shells, and other similar products; and (5) creams,
2464	2464	13 ointments, and other similar products that relieve
2465	2465	14 breastfeeding-related symptoms or conditions of the
2466	2466	15 breasts or nipples, unless sold as part of a breast pump
2467	2467	16 kit that is pre-packaged by the breast pump manufacturer
2468	2468	17 or distributor.
2469	2469	18 "Breast pump kit" means a kit that: (1) contains no
2470	2470	19 more than a breast pump, breast pump collection and
2471	2471	20 storage supplies, a rechargeable battery for operating the
2472	2472	21 breast pump, a breastmilk cooler, bottle stands, ice
2473	2473	22 packs, and a breast pump carrying case; and (2) is
2474	2474	23 pre-packaged as a breast pump kit by the breast pump
2475	2475	24 manufacturer or distributor.
2476	2476	25 (34) Tangible personal property sold by or on behalf of
2477	2477	26 the State Treasurer pursuant to the Revised Uniform Unclaimed
2478	2478
2479	2479
2480	2480
2481	2481
2482	2482
2483	2483	SB0133 - 68 - LRB104 03841 HLH 13865 b
2484	2484
2485	2485
2486	2486	SB0133- 69 -LRB104 03841 HLH 13865 b SB0133 - 69 - LRB104 03841 HLH 13865 b
2487	2487	SB0133 - 69 - LRB104 03841 HLH 13865 b
2488	2488	1 Property Act. This item (34) is exempt from the provisions of
2489	2489	2 Section 3-55.
2490	2490	3 (35) Beginning on January 1, 2024, tangible personal
2491	2491	4 property purchased by an active duty member of the armed
2492	2492	5 forces of the United States who presents valid military
2493	2493	6 identification and purchases the property using a form of
2494	2494	7 payment where the federal government is the payor. The member
2495	2495	8 of the armed forces must complete, at the point of sale, a form
2496	2496	9 prescribed by the Department of Revenue documenting that the
2497	2497	10 transaction is eligible for the exemption under this
2498	2498	11 paragraph. Retailers must keep the form as documentation of
2499	2499	12 the exemption in their records for a period of not less than 6
2500	2500	13 years. "Armed forces of the United States" means the United
2501	2501	14 States Army, Navy, Air Force, Space Force, Marine Corps, or
2502	2502	15 Coast Guard. This paragraph is exempt from the provisions of
2503	2503	16 Section 3-55.
2504	2504	17 (36) Beginning July 1, 2024, home-delivered meals provided
2505	2505	18 to Medicare or Medicaid recipients when payment is made by an
2506	2506	19 intermediary, such as a Medicare Administrative Contractor, a
2507	2507	20 Managed Care Organization, or a Medicare Advantage
2508	2508	21 Organization, pursuant to a government contract. This
2509	2509	22 paragraph (36) (35) is exempt from the provisions of Section
2510	2510	23 3-55.
2511	2511	24 (37) (36) Beginning on January 1, 2026, as further defined
2512	2512	25 in Section 3-10, food prepared for immediate consumption and
2513	2513	26 transferred incident to a sale of service subject to this Act
2514	2514
2515	2515
2516	2516
2517	2517
2518	2518
2519	2519	SB0133 - 69 - LRB104 03841 HLH 13865 b
2520	2520
2521	2521
2522	2522	SB0133- 70 -LRB104 03841 HLH 13865 b SB0133 - 70 - LRB104 03841 HLH 13865 b
2523	2523	SB0133 - 70 - LRB104 03841 HLH 13865 b
2524	2524	1 or the Service Use Tax Act by an entity licensed under the
2525	2525	2 Hospital Licensing Act, the Nursing Home Care Act, the
2526	2526	3 Assisted Living and Shared Housing Act, the ID/DD Community
2527	2527	4 Care Act, the MC/DD Act, the Specialized Mental Health
2528	2528	5 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
2529	2529	6 an entity that holds a permit issued pursuant to the Life Care
2530	2530	7 Facilities Act. This item (37) (36) is exempt from the
2531	2531	8 provisions of Section 3-55.
2532	2532	9 (38) (37) Beginning on January 1, 2026, as further defined
2533	2533	10 in Section 3-10, food for human consumption that is to be
2534	2534	11 consumed off the premises where it is sold (other than
2535	2535	12 alcoholic beverages, food consisting of or infused with adult
2536	2536	13 use cannabis, soft drinks, candy, and food that has been
2537	2537	14 prepared for immediate consumption). This item (38) (37) is
2538	2538	15 exempt from the provisions of Section 3-55.
2539	2539	16 (39) (36) The lease of the following tangible personal
2540	2540	17 property:
2541	2541	18 (1) computer software transferred subject to a license
2542	2542	19 that meets the following requirements:
2543	2543	20 (A) it is evidenced by a written agreement signed
2544	2544	21 by the licensor and the customer;
2545	2545	22 (i) an electronic agreement in which the
2546	2546	23 customer accepts the license by means of an
2547	2547	24 electronic signature that is verifiable and can be
2548	2548	25 authenticated and is attached to or made part of
2549	2549	26 the license will comply with this requirement;
2550	2550
2551	2551
2552	2552
2553	2553
2554	2554
2555	2555	SB0133 - 70 - LRB104 03841 HLH 13865 b
2556	2556
2557	2557
2558	2558	SB0133- 71 -LRB104 03841 HLH 13865 b SB0133 - 71 - LRB104 03841 HLH 13865 b
2559	2559	SB0133 - 71 - LRB104 03841 HLH 13865 b
2560	2560	1 (ii) a license agreement in which the customer
2561	2561	2 electronically accepts the terms by clicking "I
2562	2562	3 agree" does not comply with this requirement;
2563	2563	4 (B) it restricts the customer's duplication and
2564	2564	5 use of the software;
2565	2565	6 (C) it prohibits the customer from licensing,
2566	2566	7 sublicensing, or transferring the software to a third
2567	2567	8 party (except to a related party) without the
2568	2568	9 permission and continued control of the licensor;
2569	2569	10 (D) the licensor has a policy of providing another
2570	2570	11 copy at minimal or no charge if the customer loses or
2571	2571	12 damages the software, or of permitting the licensee to
2572	2572	13 make and keep an archival copy, and such policy is
2573	2573	14 either stated in the license agreement, supported by
2574	2574	15 the licensor's books and records, or supported by a
2575	2575	16 notarized statement made under penalties of perjury by
2576	2576	17 the licensor; and
2577	2577	18 (E) the customer must destroy or return all copies
2578	2578	19 of the software to the licensor at the end of the
2579	2579	20 license period; this provision is deemed to be met, in
2580	2580	21 the case of a perpetual license, without being set
2581	2581	22 forth in the license agreement; and
2582	2582	23 (2) property that is subject to a tax on lease
2583	2583	24 receipts imposed by a home rule unit of local government
2584	2584	25 if the ordinance imposing that tax was adopted prior to
2585	2585	26 January 1, 2023.
2586	2586
2587	2587
2588	2588
2589	2589
2590	2590
2591	2591	SB0133 - 71 - LRB104 03841 HLH 13865 b
2592	2592
2593	2593
2594	2594	SB0133- 72 -LRB104 03841 HLH 13865 b SB0133 - 72 - LRB104 03841 HLH 13865 b
2595	2595	SB0133 - 72 - LRB104 03841 HLH 13865 b
2596	2596	1 (40) A motor vehicle of the first division, as defined in
2597	2597	2 Section 1-146 of the Illinois Vehicle Code, that is registered
2598	2598	3 in the State to an Illinois resident who acquired the vehicle
2599	2599	4 while the Illinois resident was stationed outside of this
2600	2600	5 State as an active duty member of the military. This item (40)
2601	2601	6 is exempt from the provisions of Section 3-55.
2602	2602	7 As used in this item (40):
2603	2603	8 "Active duty member of the military" means a service
2604	2604	9 member who undertakes any full-time military training or
2605	2605	10 full-time military duty, no matter how described under federal
2606	2606	11 or State law, for which a service member is ordered to report
2607	2607	12 by the President, by the Governor of a state, commonwealth, or
2608	2608	13 territory of the United States, by an act of Congress, or by
2609	2609	14 any other appropriate military authority.
2610	2610	15 "Illinois resident" means an individual who meets the
2611	2611	16 definition of "resident" under subparagraph (A) of paragraph
2612	2612	17 (20) of subsection (a) of Section 1501 of the Illinois Income
2613	2613	18 Tax Act.
2614	2614	19 "Service member" means a person who is a member of any
2615	2615	20 component of the United States Armed Forces or the National
2616	2616	21 Guard of any state, the District of Columbia, a commonwealth,
2617	2617	22 or a territory of the United States.
2618	2618	23 (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2619	2619	24 Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2620	2620	25 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
2621	2621	26 Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
2622	2622
2623	2623
2624	2624
2625	2625
2626	2626
2627	2627	SB0133 - 72 - LRB104 03841 HLH 13865 b
2628	2628
2629	2629
2630	2630	SB0133- 73 -LRB104 03841 HLH 13865 b SB0133 - 73 - LRB104 03841 HLH 13865 b
2631	2631	SB0133 - 73 - LRB104 03841 HLH 13865 b
2632	2632	1 eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2633	2633	2 103-592, eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff.
2634	2634	3 7-1-24; 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995,
2635	2635	4 eff. 8-9-24; revised 11-26-24.)
2636	2636	5 Section 20. The Retailers' Occupation Tax Act is amended
2637	2637	6 by changing Section 2-5 as follows:
2638	2638	7 (35 ILCS 120/2-5)
2639	2639	8 Sec. 2-5. Exemptions. Gross receipts from proceeds from
2640	2640	9 the sale, which, on and after January 1, 2025, includes the
2641	2641	10 lease, of the following tangible personal property are exempt
2642	2642	11 from the tax imposed by this Act:
2643	2643	12 (1) Farm chemicals.
2644	2644	13 (2) Farm machinery and equipment, both new and used,
2645	2645	14 including that manufactured on special order, certified by
2646	2646	15 the purchaser to be used primarily for production
2647	2647	16 agriculture or State or federal agricultural programs,
2648	2648	17 including individual replacement parts for the machinery
2649	2649	18 and equipment, including machinery and equipment purchased
2650	2650	19 for lease, and including implements of husbandry defined
2651	2651	20 in Section 1-130 of the Illinois Vehicle Code, farm
2652	2652	21 machinery and agricultural chemical and fertilizer
2653	2653	22 spreaders, and nurse wagons required to be registered
2654	2654	23 under Section 3-809 of the Illinois Vehicle Code, but
2655	2655	24 excluding other motor vehicles required to be registered
2656	2656
2657	2657
2658	2658
2659	2659
2660	2660
2661	2661	SB0133 - 73 - LRB104 03841 HLH 13865 b
2662	2662
2663	2663
2664	2664	SB0133- 74 -LRB104 03841 HLH 13865 b SB0133 - 74 - LRB104 03841 HLH 13865 b
2665	2665	SB0133 - 74 - LRB104 03841 HLH 13865 b
2666	2666	1 under the Illinois Vehicle Code. Horticultural polyhouses
2667	2667	2 or hoop houses used for propagating, growing, or
2668	2668	3 overwintering plants shall be considered farm machinery
2669	2669	4 and equipment under this item (2). Agricultural chemical
2670	2670	5 tender tanks and dry boxes shall include units sold
2671	2671	6 separately from a motor vehicle required to be licensed
2672	2672	7 and units sold mounted on a motor vehicle required to be
2673	2673	8 licensed, if the selling price of the tender is separately
2674	2674	9 stated.
2675	2675	10 Farm machinery and equipment shall include precision
2676	2676	11 farming equipment that is installed or purchased to be
2677	2677	12 installed on farm machinery and equipment including, but
2678	2678	13 not limited to, tractors, harvesters, sprayers, planters,
2679	2679	14 seeders, or spreaders. Precision farming equipment
2680	2680	15 includes, but is not limited to, soil testing sensors,
2681	2681	16 computers, monitors, software, global positioning and
2682	2682	17 mapping systems, and other such equipment.
2683	2683	18 Farm machinery and equipment also includes computers,
2684	2684	19 sensors, software, and related equipment used primarily in
2685	2685	20 the computer-assisted operation of production agriculture
2686	2686	21 facilities, equipment, and activities such as, but not
2687	2687	22 limited to, the collection, monitoring, and correlation of
2688	2688	23 animal and crop data for the purpose of formulating animal
2689	2689	24 diets and agricultural chemicals.
2690	2690	25 Beginning on January 1, 2024, farm machinery and
2691	2691	26 equipment also includes electrical power generation
2692	2692
2693	2693
2694	2694
2695	2695
2696	2696
2697	2697	SB0133 - 74 - LRB104 03841 HLH 13865 b
2698	2698
2699	2699
2700	2700	SB0133- 75 -LRB104 03841 HLH 13865 b SB0133 - 75 - LRB104 03841 HLH 13865 b
2701	2701	SB0133 - 75 - LRB104 03841 HLH 13865 b
2702	2702	1 equipment used primarily for production agriculture.
2703	2703	2 This item (2) is exempt from the provisions of Section
2704	2704	3 2-70.
2705	2705	4 (3) Until July 1, 2003, distillation machinery and
2706	2706	5 equipment, sold as a unit or kit, assembled or installed
2707	2707	6 by the retailer, certified by the user to be used only for
2708	2708	7 the production of ethyl alcohol that will be used for
2709	2709	8 consumption as motor fuel or as a component of motor fuel
2710	2710	9 for the personal use of the user, and not subject to sale
2711	2711	10 or resale.
2712	2712	11 (4) Until July 1, 2003 and beginning again September
2713	2713	12 1, 2004 through August 30, 2014, graphic arts machinery
2714	2714	13 and equipment, including repair and replacement parts,
2715	2715	14 both new and used, and including that manufactured on
2716	2716	15 special order or purchased for lease, certified by the
2717	2717	16 purchaser to be used primarily for graphic arts
2718	2718	17 production. Equipment includes chemicals or chemicals
2719	2719	18 acting as catalysts but only if the chemicals or chemicals
2720	2720	19 acting as catalysts effect a direct and immediate change
2721	2721	20 upon a graphic arts product. Beginning on July 1, 2017,
2722	2722	21 graphic arts machinery and equipment is included in the
2723	2723	22 manufacturing and assembling machinery and equipment
2724	2724	23 exemption under paragraph (14).
2725	2725	24 (5) A motor vehicle that is used for automobile
2726	2726	25 renting, as defined in the Automobile Renting Occupation
2727	2727	26 and Use Tax Act. This paragraph is exempt from the
2728	2728
2729	2729
2730	2730
2731	2731
2732	2732
2733	2733	SB0133 - 75 - LRB104 03841 HLH 13865 b
2734	2734
2735	2735
2736	2736	SB0133- 76 -LRB104 03841 HLH 13865 b SB0133 - 76 - LRB104 03841 HLH 13865 b
2737	2737	SB0133 - 76 - LRB104 03841 HLH 13865 b
2738	2738	1 provisions of Section 2-70.
2739	2739	2 (6) Personal property sold by a teacher-sponsored
2740	2740	3 student organization affiliated with an elementary or
2741	2741	4 secondary school located in Illinois.
2742	2742	5 (7) Until July 1, 2003, proceeds of that portion of
2743	2743	6 the selling price of a passenger car the sale of which is
2744	2744	7 subject to the Replacement Vehicle Tax.
2745	2745	8 (8) Personal property sold to an Illinois county fair
2746	2746	9 association for use in conducting, operating, or promoting
2747	2747	10 the county fair.
2748	2748	11 (9) Personal property sold to a not-for-profit arts or
2749	2749	12 cultural organization that establishes, by proof required
2750	2750	13 by the Department by rule, that it has received an
2751	2751	14 exemption under Section 501(c)(3) of the Internal Revenue
2752	2752	15 Code and that is organized and operated primarily for the
2753	2753	16 presentation or support of arts or cultural programming,
2754	2754	17 activities, or services. These organizations include, but
2755	2755	18 are not limited to, music and dramatic arts organizations
2756	2756	19 such as symphony orchestras and theatrical groups, arts
2757	2757	20 and cultural service organizations, local arts councils,
2758	2758	21 visual arts organizations, and media arts organizations.
2759	2759	22 On and after July 1, 2001 (the effective date of Public Act
2760	2760	23 92-35), however, an entity otherwise eligible for this
2761	2761	24 exemption shall not make tax-free purchases unless it has
2762	2762	25 an active identification number issued by the Department.
2763	2763	26 (10) Personal property sold by a corporation, society,
2764	2764
2765	2765
2766	2766
2767	2767
2768	2768
2769	2769	SB0133 - 76 - LRB104 03841 HLH 13865 b
2770	2770
2771	2771
2772	2772	SB0133- 77 -LRB104 03841 HLH 13865 b SB0133 - 77 - LRB104 03841 HLH 13865 b
2773	2773	SB0133 - 77 - LRB104 03841 HLH 13865 b
2774	2774	1 association, foundation, institution, or organization,
2775	2775	2 other than a limited liability company, that is organized
2776	2776	3 and operated as a not-for-profit service enterprise for
2777	2777	4 the benefit of persons 65 years of age or older if the
2778	2778	5 personal property was not purchased by the enterprise for
2779	2779	6 the purpose of resale by the enterprise.
2780	2780	7 (11) Except as otherwise provided in this Section,
2781	2781	8 personal property sold to a governmental body, to a
2782	2782	9 corporation, society, association, foundation, or
2783	2783	10 institution organized and operated exclusively for
2784	2784	11 charitable, religious, or educational purposes, or to a
2785	2785	12 not-for-profit corporation, society, association,
2786	2786	13 foundation, institution, or organization that has no
2787	2787	14 compensated officers or employees and that is organized
2788	2788	15 and operated primarily for the recreation of persons 55
2789	2789	16 years of age or older. A limited liability company may
2790	2790	17 qualify for the exemption under this paragraph only if the
2791	2791	18 limited liability company is organized and operated
2792	2792	19 exclusively for educational purposes. On and after July 1,
2793	2793	20 1987, however, no entity otherwise eligible for this
2794	2794	21 exemption shall make tax-free purchases unless it has an
2795	2795	22 active identification number issued by the Department.
2796	2796	23 (12) (Blank).
2797	2797	24 (12-5) On and after July 1, 2003 and through June 30,
2798	2798	25 2004, motor vehicles of the second division with a gross
2799	2799	26 vehicle weight in excess of 8,000 pounds that are subject
2800	2800
2801	2801
2802	2802
2803	2803
2804	2804
2805	2805	SB0133 - 77 - LRB104 03841 HLH 13865 b
2806	2806
2807	2807
2808	2808	SB0133- 78 -LRB104 03841 HLH 13865 b SB0133 - 78 - LRB104 03841 HLH 13865 b
2809	2809	SB0133 - 78 - LRB104 03841 HLH 13865 b
2810	2810	1 to the commercial distribution fee imposed under Section
2811	2811	2 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2812	2812	3 2004 and through June 30, 2005, the use in this State of
2813	2813	4 motor vehicles of the second division: (i) with a gross
2814	2814	5 vehicle weight rating in excess of 8,000 pounds; (ii) that
2815	2815	6 are subject to the commercial distribution fee imposed
2816	2816	7 under Section 3-815.1 of the Illinois Vehicle Code; and
2817	2817	8 (iii) that are primarily used for commercial purposes.
2818	2818	9 Through June 30, 2005, this exemption applies to repair
2819	2819	10 and replacement parts added after the initial purchase of
2820	2820	11 such a motor vehicle if that motor vehicle is used in a
2821	2821	12 manner that would qualify for the rolling stock exemption
2822	2822	13 otherwise provided for in this Act. For purposes of this
2823	2823	14 paragraph, "used for commercial purposes" means the
2824	2824	15 transportation of persons or property in furtherance of
2825	2825	16 any commercial or industrial enterprise whether for-hire
2826	2826	17 or not.
2827	2827	18 (13) Proceeds from sales to owners or lessors,
2828	2828	19 lessees, or shippers of tangible personal property that is
2829	2829	20 utilized by interstate carriers for hire for use as
2830	2830	21 rolling stock moving in interstate commerce and equipment
2831	2831	22 operated by a telecommunications provider, licensed as a
2832	2832	23 common carrier by the Federal Communications Commission,
2833	2833	24 which is permanently installed in or affixed to aircraft
2834	2834	25 moving in interstate commerce.
2835	2835	26 (14) Machinery and equipment that will be used by the
2836	2836
2837	2837
2838	2838
2839	2839
2840	2840
2841	2841	SB0133 - 78 - LRB104 03841 HLH 13865 b
2842	2842
2843	2843
2844	2844	SB0133- 79 -LRB104 03841 HLH 13865 b SB0133 - 79 - LRB104 03841 HLH 13865 b
2845	2845	SB0133 - 79 - LRB104 03841 HLH 13865 b
2846	2846	1 purchaser, or a lessee of the purchaser, primarily in the
2847	2847	2 process of manufacturing or assembling tangible personal
2848	2848	3 property for wholesale or retail sale or lease, whether
2849	2849	4 the sale or lease is made directly by the manufacturer or
2850	2850	5 by some other person, whether the materials used in the
2851	2851	6 process are owned by the manufacturer or some other
2852	2852	7 person, or whether the sale or lease is made apart from or
2853	2853	8 as an incident to the seller's engaging in the service
2854	2854	9 occupation of producing machines, tools, dies, jigs,
2855	2855	10 patterns, gauges, or other similar items of no commercial
2856	2856	11 value on special order for a particular purchaser. The
2857	2857	12 exemption provided by this paragraph (14) does not include
2858	2858	13 machinery and equipment used in (i) the generation of
2859	2859	14 electricity for wholesale or retail sale; (ii) the
2860	2860	15 generation or treatment of natural or artificial gas for
2861	2861	16 wholesale or retail sale that is delivered to customers
2862	2862	17 through pipes, pipelines, or mains; or (iii) the treatment
2863	2863	18 of water for wholesale or retail sale that is delivered to
2864	2864	19 customers through pipes, pipelines, or mains. The
2865	2865	20 provisions of Public Act 98-583 are declaratory of
2866	2866	21 existing law as to the meaning and scope of this
2867	2867	22 exemption. Beginning on July 1, 2017, the exemption
2868	2868	23 provided by this paragraph (14) includes, but is not
2869	2869	24 limited to, graphic arts machinery and equipment, as
2870	2870	25 defined in paragraph (4) of this Section.
2871	2871	26 (15) Proceeds of mandatory service charges separately
2872	2872
2873	2873
2874	2874
2875	2875
2876	2876
2877	2877	SB0133 - 79 - LRB104 03841 HLH 13865 b
2878	2878
2879	2879
2880	2880	SB0133- 80 -LRB104 03841 HLH 13865 b SB0133 - 80 - LRB104 03841 HLH 13865 b
2881	2881	SB0133 - 80 - LRB104 03841 HLH 13865 b
2882	2882	1 stated on customers' bills for purchase and consumption of
2883	2883	2 food and beverages, to the extent that the proceeds of the
2884	2884	3 service charge are in fact turned over as tips or as a
2885	2885	4 substitute for tips to the employees who participate
2886	2886	5 directly in preparing, serving, hosting or cleaning up the
2887	2887	6 food or beverage function with respect to which the
2888	2888	7 service charge is imposed.
2889	2889	8 (16) Tangible personal property sold to a purchaser if
2890	2890	9 the purchaser is exempt from use tax by operation of
2891	2891	10 federal law. This paragraph is exempt from the provisions
2892	2892	11 of Section 2-70.
2893	2893	12 (17) Tangible personal property sold to a common
2894	2894	13 carrier by rail or motor that receives the physical
2895	2895	14 possession of the property in Illinois and that transports
2896	2896	15 the property, or shares with another common carrier in the
2897	2897	16 transportation of the property, out of Illinois on a
2898	2898	17 standard uniform bill of lading showing the seller of the
2899	2899	18 property as the shipper or consignor of the property to a
2900	2900	19 destination outside Illinois, for use outside Illinois.
2901	2901	20 (18) Legal tender, currency, medallions, or gold or
2902	2902	21 silver coinage issued by the State of Illinois, the
2903	2903	22 government of the United States of America, or the
2904	2904	23 government of any foreign country, and bullion.
2905	2905	24 (19) Until July 1, 2003, oil field exploration,
2906	2906	25 drilling, and production equipment, including (i) rigs and
2907	2907	26 parts of rigs, rotary rigs, cable tool rigs, and workover
2908	2908
2909	2909
2910	2910
2911	2911
2912	2912
2913	2913	SB0133 - 80 - LRB104 03841 HLH 13865 b
2914	2914
2915	2915
2916	2916	SB0133- 81 -LRB104 03841 HLH 13865 b SB0133 - 81 - LRB104 03841 HLH 13865 b
2917	2917	SB0133 - 81 - LRB104 03841 HLH 13865 b
2918	2918	1 rigs, (ii) pipe and tubular goods, including casing and
2919	2919	2 drill strings, (iii) pumps and pump-jack units, (iv)
2920	2920	3 storage tanks and flow lines, (v) any individual
2921	2921	4 replacement part for oil field exploration, drilling, and
2922	2922	5 production equipment, and (vi) machinery and equipment
2923	2923	6 purchased for lease; but excluding motor vehicles required
2924	2924	7 to be registered under the Illinois Vehicle Code.
2925	2925	8 (20) Photoprocessing machinery and equipment,
2926	2926	9 including repair and replacement parts, both new and used,
2927	2927	10 including that manufactured on special order, certified by
2928	2928	11 the purchaser to be used primarily for photoprocessing,
2929	2929	12 and including photoprocessing machinery and equipment
2930	2930	13 purchased for lease.
2931	2931	14 (21) Until July 1, 2028, coal and aggregate
2932	2932	15 exploration, mining, off-highway hauling, processing,
2933	2933	16 maintenance, and reclamation equipment, including
2934	2934	17 replacement parts and equipment, and including equipment
2935	2935	18 purchased for lease, but excluding motor vehicles required
2936	2936	19 to be registered under the Illinois Vehicle Code. The
2937	2937	20 changes made to this Section by Public Act 97-767 apply on
2938	2938	21 and after July 1, 2003, but no claim for credit or refund
2939	2939	22 is allowed on or after August 16, 2013 (the effective date
2940	2940	23 of Public Act 98-456) for such taxes paid during the
2941	2941	24 period beginning July 1, 2003 and ending on August 16,
2942	2942	25 2013 (the effective date of Public Act 98-456).
2943	2943	26 (22) Until June 30, 2013, fuel and petroleum products
2944	2944
2945	2945
2946	2946
2947	2947
2948	2948
2949	2949	SB0133 - 81 - LRB104 03841 HLH 13865 b
2950	2950
2951	2951
2952	2952	SB0133- 82 -LRB104 03841 HLH 13865 b SB0133 - 82 - LRB104 03841 HLH 13865 b
2953	2953	SB0133 - 82 - LRB104 03841 HLH 13865 b
2954	2954	1 sold to or used by an air carrier, certified by the carrier
2955	2955	2 to be used for consumption, shipment, or storage in the
2956	2956	3 conduct of its business as an air common carrier, for a
2957	2957	4 flight destined for or returning from a location or
2958	2958	5 locations outside the United States without regard to
2959	2959	6 previous or subsequent domestic stopovers.
2960	2960	7 Beginning July 1, 2013, fuel and petroleum products
2961	2961	8 sold to or used by an air carrier, certified by the carrier
2962	2962	9 to be used for consumption, shipment, or storage in the
2963	2963	10 conduct of its business as an air common carrier, for a
2964	2964	11 flight that (i) is engaged in foreign trade or is engaged
2965	2965	12 in trade between the United States and any of its
2966	2966	13 possessions and (ii) transports at least one individual or
2967	2967	14 package for hire from the city of origination to the city
2968	2968	15 of final destination on the same aircraft, without regard
2969	2969	16 to a change in the flight number of that aircraft.
2970	2970	17 (23) A transaction in which the purchase order is
2971	2971	18 received by a florist who is located outside Illinois, but
2972	2972	19 who has a florist located in Illinois deliver the property
2973	2973	20 to the purchaser or the purchaser's donee in Illinois.
2974	2974	21 (24) Fuel consumed or used in the operation of ships,
2975	2975	22 barges, or vessels that are used primarily in or for the
2976	2976	23 transportation of property or the conveyance of persons
2977	2977	24 for hire on rivers bordering on this State if the fuel is
2978	2978	25 delivered by the seller to the purchaser's barge, ship, or
2979	2979	26 vessel while it is afloat upon that bordering river.
2980	2980
2981	2981
2982	2982
2983	2983
2984	2984
2985	2985	SB0133 - 82 - LRB104 03841 HLH 13865 b
2986	2986
2987	2987
2988	2988	SB0133- 83 -LRB104 03841 HLH 13865 b SB0133 - 83 - LRB104 03841 HLH 13865 b
2989	2989	SB0133 - 83 - LRB104 03841 HLH 13865 b
2990	2990	1 (25) Except as provided in item (25-5) of this
2991	2991	2 Section, a motor vehicle sold in this State to a
2992	2992	3 nonresident even though the motor vehicle is delivered to
2993	2993	4 the nonresident in this State, if the motor vehicle is not
2994	2994	5 to be titled in this State, and if a drive-away permit is
2995	2995	6 issued to the motor vehicle as provided in Section 3-603
2996	2996	7 of the Illinois Vehicle Code or if the nonresident
2997	2997	8 purchaser has vehicle registration plates to transfer to
2998	2998	9 the motor vehicle upon returning to his or her home state.
2999	2999	10 The issuance of the drive-away permit or having the
3000	3000	11 out-of-state registration plates to be transferred is
3001	3001	12 prima facie evidence that the motor vehicle will not be
3002	3002	13 titled in this State.
3003	3003	14 (25-5) The exemption under item (25) does not apply if
3004	3004	15 the state in which the motor vehicle will be titled does
3005	3005	16 not allow a reciprocal exemption for a motor vehicle sold
3006	3006	17 and delivered in that state to an Illinois resident but
3007	3007	18 titled in Illinois. The tax collected under this Act on
3008	3008	19 the sale of a motor vehicle in this State to a resident of
3009	3009	20 another state that does not allow a reciprocal exemption
3010	3010	21 shall be imposed at a rate equal to the state's rate of tax
3011	3011	22 on taxable property in the state in which the purchaser is
3012	3012	23 a resident, except that the tax shall not exceed the tax
3013	3013	24 that would otherwise be imposed under this Act. At the
3014	3014	25 time of the sale, the purchaser shall execute a statement,
3015	3015	26 signed under penalty of perjury, of his or her intent to
3016	3016
3017	3017
3018	3018
3019	3019
3020	3020
3021	3021	SB0133 - 83 - LRB104 03841 HLH 13865 b
3022	3022
3023	3023
3024	3024	SB0133- 84 -LRB104 03841 HLH 13865 b SB0133 - 84 - LRB104 03841 HLH 13865 b
3025	3025	SB0133 - 84 - LRB104 03841 HLH 13865 b
3026	3026	1 title the vehicle in the state in which the purchaser is a
3027	3027	2 resident within 30 days after the sale and of the fact of
3028	3028	3 the payment to the State of Illinois of tax in an amount
3029	3029	4 equivalent to the state's rate of tax on taxable property
3030	3030	5 in his or her state of residence and shall submit the
3031	3031	6 statement to the appropriate tax collection agency in his
3032	3032	7 or her state of residence. In addition, the retailer must
3033	3033	8 retain a signed copy of the statement in his or her
3034	3034	9 records. Nothing in this item shall be construed to
3035	3035	10 require the removal of the vehicle from this state
3036	3036	11 following the filing of an intent to title the vehicle in
3037	3037	12 the purchaser's state of residence if the purchaser titles
3038	3038	13 the vehicle in his or her state of residence within 30 days
3039	3039	14 after the date of sale. The tax collected under this Act in
3040	3040	15 accordance with this item (25-5) shall be proportionately
3041	3041	16 distributed as if the tax were collected at the 6.25%
3042	3042	17 general rate imposed under this Act.
3043	3043	18 (25-7) Beginning on July 1, 2007, no tax is imposed
3044	3044	19 under this Act on the sale of an aircraft, as defined in
3045	3045	20 Section 3 of the Illinois Aeronautics Act, if all of the
3046	3046	21 following conditions are met:
3047	3047	22 (1) the aircraft leaves this State within 15 days
3048	3048	23 after the later of either the issuance of the final
3049	3049	24 billing for the sale of the aircraft, or the
3050	3050	25 authorized approval for return to service, completion
3051	3051	26 of the maintenance record entry, and completion of the
3052	3052
3053	3053
3054	3054
3055	3055
3056	3056
3057	3057	SB0133 - 84 - LRB104 03841 HLH 13865 b
3058	3058
3059	3059
3060	3060	SB0133- 85 -LRB104 03841 HLH 13865 b SB0133 - 85 - LRB104 03841 HLH 13865 b
3061	3061	SB0133 - 85 - LRB104 03841 HLH 13865 b
3062	3062	1 test flight and ground test for inspection, as
3063	3063	2 required by 14 CFR 91.407;
3064	3064	3 (2) the aircraft is not based or registered in
3065	3065	4 this State after the sale of the aircraft; and
3066	3066	5 (3) the seller retains in his or her books and
3067	3067	6 records and provides to the Department a signed and
3068	3068	7 dated certification from the purchaser, on a form
3069	3069	8 prescribed by the Department, certifying that the
3070	3070	9 requirements of this item (25-7) are met. The
3071	3071	10 certificate must also include the name and address of
3072	3072	11 the purchaser, the address of the location where the
3073	3073	12 aircraft is to be titled or registered, the address of
3074	3074	13 the primary physical location of the aircraft, and
3075	3075	14 other information that the Department may reasonably
3076	3076	15 require.
3077	3077	16 For purposes of this item (25-7):
3078	3078	17 "Based in this State" means hangared, stored, or
3079	3079	18 otherwise used, excluding post-sale customizations as
3080	3080	19 defined in this Section, for 10 or more days in each
3081	3081	20 12-month period immediately following the date of the sale
3082	3082	21 of the aircraft.
3083	3083	22 "Registered in this State" means an aircraft
3084	3084	23 registered with the Department of Transportation,
3085	3085	24 Aeronautics Division, or titled or registered with the
3086	3086	25 Federal Aviation Administration to an address located in
3087	3087	26 this State.
3088	3088
3089	3089
3090	3090
3091	3091
3092	3092
3093	3093	SB0133 - 85 - LRB104 03841 HLH 13865 b
3094	3094
3095	3095
3096	3096	SB0133- 86 -LRB104 03841 HLH 13865 b SB0133 - 86 - LRB104 03841 HLH 13865 b
3097	3097	SB0133 - 86 - LRB104 03841 HLH 13865 b
3098	3098	1 This paragraph (25-7) is exempt from the provisions of
3099	3099	2 Section 2-70.
3100	3100	3 (26) Semen used for artificial insemination of
3101	3101	4 livestock for direct agricultural production.
3102	3102	5 (27) Horses, or interests in horses, registered with
3103	3103	6 and meeting the requirements of any of the Arabian Horse
3104	3104	7 Club Registry of America, Appaloosa Horse Club, American
3105	3105	8 Quarter Horse Association, United States Trotting
3106	3106	9 Association, or Jockey Club, as appropriate, used for
3107	3107	10 purposes of breeding or racing for prizes. This item (27)
3108	3108	11 is exempt from the provisions of Section 2-70, and the
3109	3109	12 exemption provided for under this item (27) applies for
3110	3110	13 all periods beginning May 30, 1995, but no claim for
3111	3111	14 credit or refund is allowed on or after January 1, 2008
3112	3112	15 (the effective date of Public Act 95-88) for such taxes
3113	3113	16 paid during the period beginning May 30, 2000 and ending
3114	3114	17 on January 1, 2008 (the effective date of Public Act
3115	3115	18 95-88).
3116	3116	19 (28) Computers and communications equipment utilized
3117	3117	20 for any hospital purpose and equipment used in the
3118	3118	21 diagnosis, analysis, or treatment of hospital patients
3119	3119	22 sold to a lessor who leases the equipment, under a lease of
3120	3120	23 one year or longer executed or in effect at the time of the
3121	3121	24 purchase, to a hospital that has been issued an active tax
3122	3122	25 exemption identification number by the Department under
3123	3123	26 Section 1g of this Act.
3124	3124
3125	3125
3126	3126
3127	3127
3128	3128
3129	3129	SB0133 - 86 - LRB104 03841 HLH 13865 b
3130	3130
3131	3131
3132	3132	SB0133- 87 -LRB104 03841 HLH 13865 b SB0133 - 87 - LRB104 03841 HLH 13865 b
3133	3133	SB0133 - 87 - LRB104 03841 HLH 13865 b
3134	3134	1 (29) Personal property sold to a lessor who leases the
3135	3135	2 property, under a lease of one year or longer executed or
3136	3136	3 in effect at the time of the purchase, to a governmental
3137	3137	4 body that has been issued an active tax exemption
3138	3138	5 identification number by the Department under Section 1g
3139	3139	6 of this Act.
3140	3140	7 (30) Beginning with taxable years ending on or after
3141	3141	8 December 31, 1995 and ending with taxable years ending on
3142	3142	9 or before December 31, 2004, personal property that is
3143	3143	10 donated for disaster relief to be used in a State or
3144	3144	11 federally declared disaster area in Illinois or bordering
3145	3145	12 Illinois by a manufacturer or retailer that is registered
3146	3146	13 in this State to a corporation, society, association,
3147	3147	14 foundation, or institution that has been issued a sales
3148	3148	15 tax exemption identification number by the Department that
3149	3149	16 assists victims of the disaster who reside within the
3150	3150	17 declared disaster area.
3151	3151	18 (31) Beginning with taxable years ending on or after
3152	3152	19 December 31, 1995 and ending with taxable years ending on
3153	3153	20 or before December 31, 2004, personal property that is
3154	3154	21 used in the performance of infrastructure repairs in this
3155	3155	22 State, including, but not limited to, municipal roads and
3156	3156	23 streets, access roads, bridges, sidewalks, waste disposal
3157	3157	24 systems, water and sewer line extensions, water
3158	3158	25 distribution and purification facilities, storm water
3159	3159	26 drainage and retention facilities, and sewage treatment
3160	3160
3161	3161
3162	3162
3163	3163
3164	3164
3165	3165	SB0133 - 87 - LRB104 03841 HLH 13865 b
3166	3166
3167	3167
3168	3168	SB0133- 88 -LRB104 03841 HLH 13865 b SB0133 - 88 - LRB104 03841 HLH 13865 b
3169	3169	SB0133 - 88 - LRB104 03841 HLH 13865 b
3170	3170	1 facilities, resulting from a State or federally declared
3171	3171	2 disaster in Illinois or bordering Illinois when such
3172	3172	3 repairs are initiated on facilities located in the
3173	3173	4 declared disaster area within 6 months after the disaster.
3174	3174	5 (32) Beginning July 1, 1999, game or game birds sold
3175	3175	6 at a "game breeding and hunting preserve area" as that
3176	3176	7 term is used in the Wildlife Code. This paragraph is
3177	3177	8 exempt from the provisions of Section 2-70.
3178	3178	9 (33) A motor vehicle, as that term is defined in
3179	3179	10 Section 1-146 of the Illinois Vehicle Code, that is
3180	3180	11 donated to a corporation, limited liability company,
3181	3181	12 society, association, foundation, or institution that is
3182	3182	13 determined by the Department to be organized and operated
3183	3183	14 exclusively for educational purposes. For purposes of this
3184	3184	15 exemption, "a corporation, limited liability company,
3185	3185	16 society, association, foundation, or institution organized
3186	3186	17 and operated exclusively for educational purposes" means
3187	3187	18 all tax-supported public schools, private schools that
3188	3188	19 offer systematic instruction in useful branches of
3189	3189	20 learning by methods common to public schools and that
3190	3190	21 compare favorably in their scope and intensity with the
3191	3191	22 course of study presented in tax-supported schools, and
3192	3192	23 vocational or technical schools or institutes organized
3193	3193	24 and operated exclusively to provide a course of study of
3194	3194	25 not less than 6 weeks duration and designed to prepare
3195	3195	26 individuals to follow a trade or to pursue a manual,
3196	3196
3197	3197
3198	3198
3199	3199
3200	3200
3201	3201	SB0133 - 88 - LRB104 03841 HLH 13865 b
3202	3202
3203	3203
3204	3204	SB0133- 89 -LRB104 03841 HLH 13865 b SB0133 - 89 - LRB104 03841 HLH 13865 b
3205	3205	SB0133 - 89 - LRB104 03841 HLH 13865 b
3206	3206	1 technical, mechanical, industrial, business, or commercial
3207	3207	2 occupation.
3208	3208	3 (34) Beginning January 1, 2000, personal property,
3209	3209	4 including food, purchased through fundraising events for
3210	3210	5 the benefit of a public or private elementary or secondary
3211	3211	6 school, a group of those schools, or one or more school
3212	3212	7 districts if the events are sponsored by an entity
3213	3213	8 recognized by the school district that consists primarily
3214	3214	9 of volunteers and includes parents and teachers of the
3215	3215	10 school children. This paragraph does not apply to
3216	3216	11 fundraising events (i) for the benefit of private home
3217	3217	12 instruction or (ii) for which the fundraising entity
3218	3218	13 purchases the personal property sold at the events from
3219	3219	14 another individual or entity that sold the property for
3220	3220	15 the purpose of resale by the fundraising entity and that
3221	3221	16 profits from the sale to the fundraising entity. This
3222	3222	17 paragraph is exempt from the provisions of Section 2-70.
3223	3223	18 (35) Beginning January 1, 2000 and through December
3224	3224	19 31, 2001, new or used automatic vending machines that
3225	3225	20 prepare and serve hot food and beverages, including
3226	3226	21 coffee, soup, and other items, and replacement parts for
3227	3227	22 these machines. Beginning January 1, 2002 and through June
3228	3228	23 30, 2003, machines and parts for machines used in
3229	3229	24 commercial, coin-operated amusement and vending business
3230	3230	25 if a use or occupation tax is paid on the gross receipts
3231	3231	26 derived from the use of the commercial, coin-operated
3232	3232
3233	3233
3234	3234
3235	3235
3236	3236
3237	3237	SB0133 - 89 - LRB104 03841 HLH 13865 b
3238	3238
3239	3239
3240	3240	SB0133- 90 -LRB104 03841 HLH 13865 b SB0133 - 90 - LRB104 03841 HLH 13865 b
3241	3241	SB0133 - 90 - LRB104 03841 HLH 13865 b
3242	3242	1 amusement and vending machines. This paragraph is exempt
3243	3243	2 from the provisions of Section 2-70.
3244	3244	3 (35-5) Beginning August 23, 2001 and through June 30,
3245	3245	4 2016, food for human consumption that is to be consumed
3246	3246	5 off the premises where it is sold (other than alcoholic
3247	3247	6 beverages, soft drinks, and food that has been prepared
3248	3248	7 for immediate consumption) and prescription and
3249	3249	8 nonprescription medicines, drugs, medical appliances, and
3250	3250	9 insulin, urine testing materials, syringes, and needles
3251	3251	10 used by diabetics, for human use, when purchased for use
3252	3252	11 by a person receiving medical assistance under Article V
3253	3253	12 of the Illinois Public Aid Code who resides in a licensed
3254	3254	13 long-term care facility, as defined in the Nursing Home
3255	3255	14 Care Act, or a licensed facility as defined in the ID/DD
3256	3256	15 Community Care Act, the MC/DD Act, or the Specialized
3257	3257	16 Mental Health Rehabilitation Act of 2013.
3258	3258	17 (36) Beginning August 2, 2001, computers and
3259	3259	18 communications equipment utilized for any hospital purpose
3260	3260	19 and equipment used in the diagnosis, analysis, or
3261	3261	20 treatment of hospital patients sold to a lessor who leases
3262	3262	21 the equipment, under a lease of one year or longer
3263	3263	22 executed or in effect at the time of the purchase, to a
3264	3264	23 hospital that has been issued an active tax exemption
3265	3265	24 identification number by the Department under Section 1g
3266	3266	25 of this Act. This paragraph is exempt from the provisions
3267	3267	26 of Section 2-70.
3268	3268
3269	3269
3270	3270
3271	3271
3272	3272
3273	3273	SB0133 - 90 - LRB104 03841 HLH 13865 b
3274	3274
3275	3275
3276	3276	SB0133- 91 -LRB104 03841 HLH 13865 b SB0133 - 91 - LRB104 03841 HLH 13865 b
3277	3277	SB0133 - 91 - LRB104 03841 HLH 13865 b
3278	3278	1 (37) Beginning August 2, 2001, personal property sold
3279	3279	2 to a lessor who leases the property, under a lease of one
3280	3280	3 year or longer executed or in effect at the time of the
3281	3281	4 purchase, to a governmental body that has been issued an
3282	3282	5 active tax exemption identification number by the
3283	3283	6 Department under Section 1g of this Act. This paragraph is
3284	3284	7 exempt from the provisions of Section 2-70.
3285	3285	8 (38) Beginning on January 1, 2002 and through June 30,
3286	3286	9 2016, tangible personal property purchased from an
3287	3287	10 Illinois retailer by a taxpayer engaged in centralized
3288	3288	11 purchasing activities in Illinois who will, upon receipt
3289	3289	12 of the property in Illinois, temporarily store the
3290	3290	13 property in Illinois (i) for the purpose of subsequently
3291	3291	14 transporting it outside this State for use or consumption
3292	3292	15 thereafter solely outside this State or (ii) for the
3293	3293	16 purpose of being processed, fabricated, or manufactured
3294	3294	17 into, attached to, or incorporated into other tangible
3295	3295	18 personal property to be transported outside this State and
3296	3296	19 thereafter used or consumed solely outside this State. The
3297	3297	20 Director of Revenue shall, pursuant to rules adopted in
3298	3298	21 accordance with the Illinois Administrative Procedure Act,
3299	3299	22 issue a permit to any taxpayer in good standing with the
3300	3300	23 Department who is eligible for the exemption under this
3301	3301	24 paragraph (38). The permit issued under this paragraph
3302	3302	25 (38) shall authorize the holder, to the extent and in the
3303	3303	26 manner specified in the rules adopted under this Act, to
3304	3304
3305	3305
3306	3306
3307	3307
3308	3308
3309	3309	SB0133 - 91 - LRB104 03841 HLH 13865 b
3310	3310
3311	3311
3312	3312	SB0133- 92 -LRB104 03841 HLH 13865 b SB0133 - 92 - LRB104 03841 HLH 13865 b
3313	3313	SB0133 - 92 - LRB104 03841 HLH 13865 b
3314	3314	1 purchase tangible personal property from a retailer exempt
3315	3315	2 from the taxes imposed by this Act. Taxpayers shall
3316	3316	3 maintain all necessary books and records to substantiate
3317	3317	4 the use and consumption of all such tangible personal
3318	3318	5 property outside of the State of Illinois.
3319	3319	6 (39) Beginning January 1, 2008, tangible personal
3320	3320	7 property used in the construction or maintenance of a
3321	3321	8 community water supply, as defined under Section 3.145 of
3322	3322	9 the Environmental Protection Act, that is operated by a
3323	3323	10 not-for-profit corporation that holds a valid water supply
3324	3324	11 permit issued under Title IV of the Environmental
3325	3325	12 Protection Act. This paragraph is exempt from the
3326	3326	13 provisions of Section 2-70.
3327	3327	14 (40) Beginning January 1, 2010 and continuing through
3328	3328	15 December 31, 2029, materials, parts, equipment,
3329	3329	16 components, and furnishings incorporated into or upon an
3330	3330	17 aircraft as part of the modification, refurbishment,
3331	3331	18 completion, replacement, repair, or maintenance of the
3332	3332	19 aircraft. This exemption includes consumable supplies used
3333	3333	20 in the modification, refurbishment, completion,
3334	3334	21 replacement, repair, and maintenance of aircraft. However,
3335	3335	22 until January 1, 2024, this exemption excludes any
3336	3336	23 materials, parts, equipment, components, and consumable
3337	3337	24 supplies used in the modification, replacement, repair,
3338	3338	25 and maintenance of aircraft engines or power plants,
3339	3339	26 whether such engines or power plants are installed or
3340	3340
3341	3341
3342	3342
3343	3343
3344	3344
3345	3345	SB0133 - 92 - LRB104 03841 HLH 13865 b
3346	3346
3347	3347
3348	3348	SB0133- 93 -LRB104 03841 HLH 13865 b SB0133 - 93 - LRB104 03841 HLH 13865 b
3349	3349	SB0133 - 93 - LRB104 03841 HLH 13865 b
3350	3350	1 uninstalled upon any such aircraft. "Consumable supplies"
3351	3351	2 include, but are not limited to, adhesive, tape,
3352	3352	3 sandpaper, general purpose lubricants, cleaning solution,
3353	3353	4 latex gloves, and protective films.
3354	3354	5 Beginning January 1, 2010 and continuing through
3355	3355	6 December 31, 2023, this exemption applies only to the sale
3356	3356	7 of qualifying tangible personal property to persons who
3357	3357	8 modify, refurbish, complete, replace, or maintain an
3358	3358	9 aircraft and who (i) hold an Air Agency Certificate and
3359	3359	10 are empowered to operate an approved repair station by the
3360	3360	11 Federal Aviation Administration, (ii) have a Class IV
3361	3361	12 Rating, and (iii) conduct operations in accordance with
3362	3362	13 Part 145 of the Federal Aviation Regulations. The
3363	3363	14 exemption does not include aircraft operated by a
3364	3364	15 commercial air carrier providing scheduled passenger air
3365	3365	16 service pursuant to authority issued under Part 121 or
3366	3366	17 Part 129 of the Federal Aviation Regulations. From January
3367	3367	18 1, 2024 through December 31, 2029, this exemption applies
3368	3368	19 only to the sale of qualifying tangible personal property
3369	3369	20 to: (A) persons who modify, refurbish, complete, repair,
3370	3370	21 replace, or maintain aircraft and who (i) hold an Air
3371	3371	22 Agency Certificate and are empowered to operate an
3372	3372	23 approved repair station by the Federal Aviation
3373	3373	24 Administration, (ii) have a Class IV Rating, and (iii)
3374	3374	25 conduct operations in accordance with Part 145 of the
3375	3375	26 Federal Aviation Regulations; and (B) persons who engage
3376	3376
3377	3377
3378	3378
3379	3379
3380	3380
3381	3381	SB0133 - 93 - LRB104 03841 HLH 13865 b
3382	3382
3383	3383
3384	3384	SB0133- 94 -LRB104 03841 HLH 13865 b SB0133 - 94 - LRB104 03841 HLH 13865 b
3385	3385	SB0133 - 94 - LRB104 03841 HLH 13865 b
3386	3386	1 in the modification, replacement, repair, and maintenance
3387	3387	2 of aircraft engines or power plants without regard to
3388	3388	3 whether or not those persons meet the qualifications of
3389	3389	4 item (A).
3390	3390	5 The changes made to this paragraph (40) by Public Act
3391	3391	6 98-534 are declarative of existing law. It is the intent
3392	3392	7 of the General Assembly that the exemption under this
3393	3393	8 paragraph (40) applies continuously from January 1, 2010
3394	3394	9 through December 31, 2024; however, no claim for credit or
3395	3395	10 refund is allowed for taxes paid as a result of the
3396	3396	11 disallowance of this exemption on or after January 1, 2015
3397	3397	12 and prior to February 5, 2020 (the effective date of
3398	3398	13 Public Act 101-629).
3399	3399	14 (41) Tangible personal property sold to a
3400	3400	15 public-facilities corporation, as described in Section
3401	3401	16 11-65-10 of the Illinois Municipal Code, for purposes of
3402	3402	17 constructing or furnishing a municipal convention hall,
3403	3403	18 but only if the legal title to the municipal convention
3404	3404	19 hall is transferred to the municipality without any
3405	3405	20 further consideration by or on behalf of the municipality
3406	3406	21 at the time of the completion of the municipal convention
3407	3407	22 hall or upon the retirement or redemption of any bonds or
3408	3408	23 other debt instruments issued by the public-facilities
3409	3409	24 corporation in connection with the development of the
3410	3410	25 municipal convention hall. This exemption includes
3411	3411	26 existing public-facilities corporations as provided in
3412	3412
3413	3413
3414	3414
3415	3415
3416	3416
3417	3417	SB0133 - 94 - LRB104 03841 HLH 13865 b
3418	3418
3419	3419
3420	3420	SB0133- 95 -LRB104 03841 HLH 13865 b SB0133 - 95 - LRB104 03841 HLH 13865 b
3421	3421	SB0133 - 95 - LRB104 03841 HLH 13865 b
3422	3422	1 Section 11-65-25 of the Illinois Municipal Code. This
3423	3423	2 paragraph is exempt from the provisions of Section 2-70.
3424	3424	3 (42) Beginning January 1, 2017 and through December
3425	3425	4 31, 2026, menstrual pads, tampons, and menstrual cups.
3426	3426	5 (43) Merchandise that is subject to the Rental
3427	3427	6 Purchase Agreement Occupation and Use Tax. The purchaser
3428	3428	7 must certify that the item is purchased to be rented
3429	3429	8 subject to a rental-purchase agreement, as defined in the
3430	3430	9 Rental-Purchase Agreement Act, and provide proof of
3431	3431	10 registration under the Rental Purchase Agreement
3432	3432	11 Occupation and Use Tax Act. This paragraph is exempt from
3433	3433	12 the provisions of Section 2-70.
3434	3434	13 (44) Qualified tangible personal property used in the
3435	3435	14 construction or operation of a data center that has been
3436	3436	15 granted a certificate of exemption by the Department of
3437	3437	16 Commerce and Economic Opportunity, whether that tangible
3438	3438	17 personal property is purchased by the owner, operator, or
3439	3439	18 tenant of the data center or by a contractor or
3440	3440	19 subcontractor of the owner, operator, or tenant. Data
3441	3441	20 centers that would have qualified for a certificate of
3442	3442	21 exemption prior to January 1, 2020 had Public Act 101-31
3443	3443	22 been in effect, may apply for and obtain an exemption for
3444	3444	23 subsequent purchases of computer equipment or enabling
3445	3445	24 software purchased or leased to upgrade, supplement, or
3446	3446	25 replace computer equipment or enabling software purchased
3447	3447	26 or leased in the original investment that would have
3448	3448
3449	3449
3450	3450
3451	3451
3452	3452
3453	3453	SB0133 - 95 - LRB104 03841 HLH 13865 b
3454	3454
3455	3455
3456	3456	SB0133- 96 -LRB104 03841 HLH 13865 b SB0133 - 96 - LRB104 03841 HLH 13865 b
3457	3457	SB0133 - 96 - LRB104 03841 HLH 13865 b
3458	3458	1 qualified.
3459	3459	2 The Department of Commerce and Economic Opportunity
3460	3460	3 shall grant a certificate of exemption under this item
3461	3461	4 (44) to qualified data centers as defined by Section
3462	3462	5 605-1025 of the Department of Commerce and Economic
3463	3463	6 Opportunity Law of the Civil Administrative Code of
3464	3464	7 Illinois.
3465	3465	8 For the purposes of this item (44):
3466	3466	9 "Data center" means a building or a series of
3467	3467	10 buildings rehabilitated or constructed to house
3468	3468	11 working servers in one physical location or multiple
3469	3469	12 sites within the State of Illinois.
3470	3470	13 "Qualified tangible personal property" means:
3471	3471	14 electrical systems and equipment; climate control and
3472	3472	15 chilling equipment and systems; mechanical systems and
3473	3473	16 equipment; monitoring and secure systems; emergency
3474	3474	17 generators; hardware; computers; servers; data storage
3475	3475	18 devices; network connectivity equipment; racks;
3476	3476	19 cabinets; telecommunications cabling infrastructure;
3477	3477	20 raised floor systems; peripheral components or
3478	3478	21 systems; software; mechanical, electrical, or plumbing
3479	3479	22 systems; battery systems; cooling systems and towers;
3480	3480	23 temperature control systems; other cabling; and other
3481	3481	24 data center infrastructure equipment and systems
3482	3482	25 necessary to operate qualified tangible personal
3483	3483	26 property, including fixtures; and component parts of
3484	3484
3485	3485
3486	3486
3487	3487
3488	3488
3489	3489	SB0133 - 96 - LRB104 03841 HLH 13865 b
3490	3490
3491	3491
3492	3492	SB0133- 97 -LRB104 03841 HLH 13865 b SB0133 - 97 - LRB104 03841 HLH 13865 b
3493	3493	SB0133 - 97 - LRB104 03841 HLH 13865 b
3494	3494	1 any of the foregoing, including installation,
3495	3495	2 maintenance, repair, refurbishment, and replacement of
3496	3496	3 qualified tangible personal property to generate,
3497	3497	4 transform, transmit, distribute, or manage electricity
3498	3498	5 necessary to operate qualified tangible personal
3499	3499	6 property; and all other tangible personal property
3500	3500	7 that is essential to the operations of a computer data
3501	3501	8 center. The term "qualified tangible personal
3502	3502	9 property" also includes building materials physically
3503	3503	10 incorporated into the qualifying data center. To
3504	3504	11 document the exemption allowed under this Section, the
3505	3505	12 retailer must obtain from the purchaser a copy of the
3506	3506	13 certificate of eligibility issued by the Department of
3507	3507	14 Commerce and Economic Opportunity.
3508	3508	15 This item (44) is exempt from the provisions of
3509	3509	16 Section 2-70.
3510	3510	17 (45) Beginning January 1, 2020 and through December
3511	3511	18 31, 2020, sales of tangible personal property made by a
3512	3512	19 marketplace seller over a marketplace for which tax is due
3513	3513	20 under this Act but for which use tax has been collected and
3514	3514	21 remitted to the Department by a marketplace facilitator
3515	3515	22 under Section 2d of the Use Tax Act are exempt from tax
3516	3516	23 under this Act. A marketplace seller claiming this
3517	3517	24 exemption shall maintain books and records demonstrating
3518	3518	25 that the use tax on such sales has been collected and
3519	3519	26 remitted by a marketplace facilitator. Marketplace sellers
3520	3520
3521	3521
3522	3522
3523	3523
3524	3524
3525	3525	SB0133 - 97 - LRB104 03841 HLH 13865 b
3526	3526
3527	3527
3528	3528	SB0133- 98 -LRB104 03841 HLH 13865 b SB0133 - 98 - LRB104 03841 HLH 13865 b
3529	3529	SB0133 - 98 - LRB104 03841 HLH 13865 b
3530	3530	1 that have properly remitted tax under this Act on such
3531	3531	2 sales may file a claim for credit as provided in Section 6
3532	3532	3 of this Act. No claim is allowed, however, for such taxes
3533	3533	4 for which a credit or refund has been issued to the
3534	3534	5 marketplace facilitator under the Use Tax Act, or for
3535	3535	6 which the marketplace facilitator has filed a claim for
3536	3536	7 credit or refund under the Use Tax Act.
3537	3537	8 (46) Beginning July 1, 2022, breast pumps, breast pump
3538	3538	9 collection and storage supplies, and breast pump kits.
3539	3539	10 This item (46) is exempt from the provisions of Section
3540	3540	11 2-70. As used in this item (46):
3541	3541	12 "Breast pump" means an electrically controlled or
3542	3542	13 manually controlled pump device designed or marketed to be
3543	3543	14 used to express milk from a human breast during lactation,
3544	3544	15 including the pump device and any battery, AC adapter, or
3545	3545	16 other power supply unit that is used to power the pump
3546	3546	17 device and is packaged and sold with the pump device at the
3547	3547	18 time of sale.
3548	3548	19 "Breast pump collection and storage supplies" means
3549	3549	20 items of tangible personal property designed or marketed
3550	3550	21 to be used in conjunction with a breast pump to collect
3551	3551	22 milk expressed from a human breast and to store collected
3552	3552	23 milk until it is ready for consumption.
3553	3553	24 "Breast pump collection and storage supplies"
3554	3554	25 includes, but is not limited to: breast shields and breast
3555	3555	26 shield connectors; breast pump tubes and tubing adapters;
3556	3556
3557	3557
3558	3558
3559	3559
3560	3560
3561	3561	SB0133 - 98 - LRB104 03841 HLH 13865 b
3562	3562
3563	3563
3564	3564	SB0133- 99 -LRB104 03841 HLH 13865 b SB0133 - 99 - LRB104 03841 HLH 13865 b
3565	3565	SB0133 - 99 - LRB104 03841 HLH 13865 b
3566	3566	1 breast pump valves and membranes; backflow protectors and
3567	3567	2 backflow protector adaptors; bottles and bottle caps
3568	3568	3 specific to the operation of the breast pump; and breast
3569	3569	4 milk storage bags.
3570	3570	5 "Breast pump collection and storage supplies" does not
3571	3571	6 include: (1) bottles and bottle caps not specific to the
3572	3572	7 operation of the breast pump; (2) breast pump travel bags
3573	3573	8 and other similar carrying accessories, including ice
3574	3574	9 packs, labels, and other similar products; (3) breast pump
3575	3575	10 cleaning supplies; (4) nursing bras, bra pads, breast
3576	3576	11 shells, and other similar products; and (5) creams,
3577	3577	12 ointments, and other similar products that relieve
3578	3578	13 breastfeeding-related symptoms or conditions of the
3579	3579	14 breasts or nipples, unless sold as part of a breast pump
3580	3580	15 kit that is pre-packaged by the breast pump manufacturer
3581	3581	16 or distributor.
3582	3582	17 "Breast pump kit" means a kit that: (1) contains no
3583	3583	18 more than a breast pump, breast pump collection and
3584	3584	19 storage supplies, a rechargeable battery for operating the
3585	3585	20 breast pump, a breastmilk cooler, bottle stands, ice
3586	3586	21 packs, and a breast pump carrying case; and (2) is
3587	3587	22 pre-packaged as a breast pump kit by the breast pump
3588	3588	23 manufacturer or distributor.
3589	3589	24 (47) Tangible personal property sold by or on behalf
3590	3590	25 of the State Treasurer pursuant to the Revised Uniform
3591	3591	26 Unclaimed Property Act. This item (47) is exempt from the
3592	3592
3593	3593
3594	3594
3595	3595
3596	3596
3597	3597	SB0133 - 99 - LRB104 03841 HLH 13865 b
3598	3598
3599	3599
3600	3600	SB0133- 100 -LRB104 03841 HLH 13865 b SB0133 - 100 - LRB104 03841 HLH 13865 b
3601	3601	SB0133 - 100 - LRB104 03841 HLH 13865 b
3602	3602	1 provisions of Section 2-70.
3603	3603	2 (48) Beginning on January 1, 2024, tangible personal
3604	3604	3 property purchased by an active duty member of the armed
3605	3605	4 forces of the United States who presents valid military
3606	3606	5 identification and purchases the property using a form of
3607	3607	6 payment where the federal government is the payor. The
3608	3608	7 member of the armed forces must complete, at the point of
3609	3609	8 sale, a form prescribed by the Department of Revenue
3610	3610	9 documenting that the transaction is eligible for the
3611	3611	10 exemption under this paragraph. Retailers must keep the
3612	3612	11 form as documentation of the exemption in their records
3613	3613	12 for a period of not less than 6 years. "Armed forces of the
3614	3614	13 United States" means the United States Army, Navy, Air
3615	3615	14 Force, Space Force, Marine Corps, or Coast Guard. This
3616	3616	15 paragraph is exempt from the provisions of Section 2-70.
3617	3617	16 (49) Beginning July 1, 2024, home-delivered meals
3618	3618	17 provided to Medicare or Medicaid recipients when payment
3619	3619	18 is made by an intermediary, such as a Medicare
3620	3620	19 Administrative Contractor, a Managed Care Organization, or
3621	3621	20 a Medicare Advantage Organization, pursuant to a
3622	3622	21 government contract. This paragraph (49) is exempt from
3623	3623	22 the provisions of Section 2-70.
3624	3624	23 (50) (49) Beginning on January 1, 2026, as further
3625	3625	24 defined in Section 2-10, food for human consumption that
3626	3626	25 is to be consumed off the premises where it is sold (other
3627	3627	26 than alcoholic beverages, food consisting of or infused
3628	3628
3629	3629
3630	3630
3631	3631
3632	3632
3633	3633	SB0133 - 100 - LRB104 03841 HLH 13865 b
3634	3634
3635	3635
3636	3636	SB0133- 101 -LRB104 03841 HLH 13865 b SB0133 - 101 - LRB104 03841 HLH 13865 b
3637	3637	SB0133 - 101 - LRB104 03841 HLH 13865 b
3638	3638	1 with adult use cannabis, soft drinks, candy, and food that
3639	3639	2 has been prepared for immediate consumption). This item
3640	3640	3 (50) (49) is exempt from the provisions of Section 2-70.
3641	3641	4 (51) (49) Gross receipts from the lease of the
3642	3642	5 following tangible personal property:
3643	3643	6 (1) computer software transferred subject to a
3644	3644	7 license that meets the following requirements:
3645	3645	8 (A) it is evidenced by a written agreement
3646	3646	9 signed by the licensor and the customer;
3647	3647	10 (i) an electronic agreement in which the
3648	3648	11 customer accepts the license by means of an
3649	3649	12 electronic signature that is verifiable and
3650	3650	13 can be authenticated and is attached to or
3651	3651	14 made part of the license will comply with this
3652	3652	15 requirement;
3653	3653	16 (ii) a license agreement in which the
3654	3654	17 customer electronically accepts the terms by
3655	3655	18 clicking "I agree" does not comply with this
3656	3656	19 requirement;
3657	3657	20 (B) it restricts the customer's duplication
3658	3658	21 and use of the software;
3659	3659	22 (C) it prohibits the customer from licensing,
3660	3660	23 sublicensing, or transferring the software to a
3661	3661	24 third party (except to a related party) without
3662	3662	25 the permission and continued control of the
3663	3663	26 licensor;
3664	3664
3665	3665
3666	3666
3667	3667
3668	3668
3669	3669	SB0133 - 101 - LRB104 03841 HLH 13865 b
3670	3670
3671	3671
3672	3672	SB0133- 102 -LRB104 03841 HLH 13865 b SB0133 - 102 - LRB104 03841 HLH 13865 b
3673	3673	SB0133 - 102 - LRB104 03841 HLH 13865 b
3674	3674	1 (D) the licensor has a policy of providing
3675	3675	2 another copy at minimal or no charge if the
3676	3676	3 customer loses or damages the software, or of
3677	3677	4 permitting the licensee to make and keep an
3678	3678	5 archival copy, and such policy is either stated in
3679	3679	6 the license agreement, supported by the licensor's
3680	3680	7 books and records, or supported by a notarized
3681	3681	8 statement made under penalties of perjury by the
3682	3682	9 licensor; and
3683	3683	10 (E) the customer must destroy or return all
3684	3684	11 copies of the software to the licensor at the end
3685	3685	12 of the license period; this provision is deemed to
3686	3686	13 be met, in the case of a perpetual license,
3687	3687	14 without being set forth in the license agreement;
3688	3688	15 and
3689	3689	16 (2) property that is subject to a tax on lease
3690	3690	17 receipts imposed by a home rule unit of local
3691	3691	18 government if the ordinance imposing that tax was
3692	3692	19 adopted prior to January 1, 2023.
3693	3693	20 (52) A motor vehicle of the first division, as defined
3694	3694	21 in Section 1-146 of the Illinois Vehicle Code, that is
3695	3695	22 registered in the State to an Illinois resident who
3696	3696	23 acquired the vehicle while the Illinois resident was
3697	3697	24 stationed outside of this State as an active duty member
3698	3698	25 of the military. This item (52) is exempt from the
3699	3699	26 provisions of Section 2-70.
3700	3700
3701	3701
3702	3702
3703	3703
3704	3704
3705	3705	SB0133 - 102 - LRB104 03841 HLH 13865 b
3706	3706
3707	3707
3708	3708	SB0133- 103 -LRB104 03841 HLH 13865 b SB0133 - 103 - LRB104 03841 HLH 13865 b
3709	3709	SB0133 - 103 - LRB104 03841 HLH 13865 b
3710	3710	1 As used in this item (52):
3711	3711	2 "Active duty member of the military" means a service
3712	3712	3 member who undertakes any full-time military training or
3713	3713	4 full-time military duty, no matter how described under
3714	3714	5 federal or State law, for which a service member is
3715	3715	6 ordered to report by the President, by the Governor of a
3716	3716	7 state, commonwealth, or territory of the United States, by
3717	3717	8 an act of Congress, or by any other appropriate military
3718	3718	9 authority.
3719	3719	10 "Illinois resident" means an individual who meets the
3720	3720	11 definition of "resident" under subparagraph (A) of
3721	3721	12 paragraph (20) of subsection (a) of Section 1501 of the
3722	3722	13 Illinois Income Tax Act.
3723	3723	14 "Service member" means a person who is a member of any
3724	3724	15 component of the United States Armed Forces or the
3725	3725	16 National Guard of any state, the District of Columbia, a
3726	3726	17 commonwealth, or a territory of the United States.
3727	3727	18 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
3728	3728	19 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
3729	3729	20 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
3730	3730	21 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
3731	3731	22 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
3732	3732	23 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
3733	3733	24 eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
3734	3734	25 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
3735	3735	26 8-9-24; revised 11-26-24.)
3736	3736
3737	3737
3738	3738
3739	3739
3740	3740
3741	3741	SB0133 - 103 - LRB104 03841 HLH 13865 b
3742	3742
3743	3743
3744	3744	SB0133- 104 -LRB104 03841 HLH 13865 b SB0133 - 104 - LRB104 03841 HLH 13865 b
3745	3745	SB0133 - 104 - LRB104 03841 HLH 13865 b
3746	3746	1 Section 25. The Illinois Vehicle Code is amended by
3747	3747	2 changing Section 3-1001 as follows:
3748	3748	3 (625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
3749	3749	4 Sec. 3-1001. A tax is hereby imposed on the privilege of
3750	3750	5 using, in this State, any motor vehicle as defined in Section
3751	3751	6 1-146 of this Code acquired by gift, transfer, or purchase,
3752	3752	7 and having a year model designation preceding the year of
3753	3753	8 application for title by 5 or fewer years prior to October 1,
3754	3754	9 1985 and 10 or fewer years on and after October 1, 1985 and
3755	3755	10 prior to January 1, 1988. On and after January 1, 1988, the tax
3756	3756	11 shall apply to all motor vehicles without regard to model
3757	3757	12 year. Except that the tax shall not apply:
3758	3758	13 (i) if the use of the motor vehicle is otherwise taxed
3759	3759	14 under the Use Tax Act;
3760	3760	15 (ii) if the motor vehicle is bought and used by a
3761	3761	16 governmental agency or a society, association, foundation
3762	3762	17 or institution organized and operated exclusively for
3763	3763	18 charitable, religious or educational purposes;
3764	3764	19 (iii) if the use of the motor vehicle is not subject to
3765	3765	20 the Use Tax Act by reason of subsection (a), (b), (c), (d),
3766	3766	21 (e) or (f) of Section 3-55 of that Act dealing with the
3767	3767	22 prevention of actual or likely multistate taxation;
3768	3768	23 (iv) to implements of husbandry;
3769	3769	24 (v) when a junking certificate is issued pursuant to
3770	3770
3771	3771
3772	3772
3773	3773
3774	3774
3775	3775	SB0133 - 104 - LRB104 03841 HLH 13865 b
3776	3776
3777	3777
3778	3778	SB0133- 105 -LRB104 03841 HLH 13865 b SB0133 - 105 - LRB104 03841 HLH 13865 b
3779	3779	SB0133 - 105 - LRB104 03841 HLH 13865 b
3780	3780	1 Section 3-117(a) of this Code;
3781	3781	2 (vi) when a vehicle is subject to the replacement
3782	3782	3 vehicle tax imposed by Section 3-2001 of this Act;
3783	3783	4 (vii) when the transfer is a gift to a beneficiary in
3784	3784	5 the administration of an estate and the beneficiary is a
3785	3785	6 surviving spouse; or .
3786	3786	7 (viii) if the use of the motor vehicle is not subject
3787	3787	8 to the Use Tax Act by reason of item (47) of Section 3-5 of
3788	3788	9 that Act.
3789	3789	10 Prior to January 1, 1988, the rate of tax shall be 5% of
3790	3790	11 the selling price for each purchase of a motor vehicle covered
3791	3791	12 by Section 3-1001 of this Code. Except as hereinafter
3792	3792	13 provided, beginning January 1, 1988 and until January 1, 2022,
3793	3793	14 the rate of tax shall be as follows for transactions in which
3794	3794	15 the selling price of the motor vehicle is less than $15,000:
3795	3795	16Number of Years Transpired AfterApplicable Tax 17Model Year of Motor Vehicle181 or less$39019229020321521416522511523690247802586526950 16 Number of Years Transpired After Applicable Tax 17 Model Year of Motor Vehicle 18 1 or less $390 19 2 290 20 3 215 21 4 165 22 5 115 23 6 90 24 7 80 25 8 65 26 9 50
3796	3796	16 Number of Years Transpired After Applicable Tax
3797	3797	17 Model Year of Motor Vehicle
3798	3798	18 1 or less $390
3799	3799	19 2 290
3800	3800	20 3 215
3801	3801	21 4 165
3802	3802	22 5 115
3803	3803	23 6 90
3804	3804	24 7 80
3805	3805	25 8 65
3806	3806	26 9 50
3807	3807
3808	3808
3809	3809
3810	3810
3811	3811
3812	3812	SB0133 - 105 - LRB104 03841 HLH 13865 b
3813	3813
3814	3814
3815	3815	16 Number of Years Transpired After Applicable Tax
3816	3816	17 Model Year of Motor Vehicle
3817	3817	18 1 or less $390
3818	3818	19 2 290
3819	3819	20 3 215
3820	3820	21 4 165
3821	3821	22 5 115
3822	3822	23 6 90
3823	3823	24 7 80
3824	3824	25 8 65
3825	3825	26 9 50
3826	3826
3827	3827
3828	3828	SB0133- 106 -LRB104 03841 HLH 13865 b SB0133 - 106 - LRB104 03841 HLH 13865 b
3829	3829	SB0133 - 106 - LRB104 03841 HLH 13865 b
3830	3830	110402over 1025 1 10 40 2 over 10 25
3831	3831	1 10 40
3832	3832	2 over 10 25
3833	3833	3 Except as hereinafter provided, beginning January 1, 1988 and
3834	3834	4 until January 1, 2022, the rate of tax shall be as follows for
3835	3835	5 transactions in which the selling price of the motor vehicle
3836	3836	6 is $15,000 or more:
3837	3837	7Selling PriceApplicable Tax8$15,000 - $19,999$ 7509$20,000 - $24,999$1,00010$25,000 - $29,999$1,25011$30,000 and over$1,500 7 Selling Price Applicable Tax 8 $15,000 - $19,999 $ 750 9 $20,000 - $24,999 $1,000 10 $25,000 - $29,999 $1,250 11 $30,000 and over $1,500
3838	3838	7 Selling Price Applicable Tax
3839	3839	8 $15,000 - $19,999 $ 750
3840	3840	9 $20,000 - $24,999 $1,000
3841	3841	10 $25,000 - $29,999 $1,250
3842	3842	11 $30,000 and over $1,500
3843	3843	12 Except as hereinafter provided, beginning on January 1,
3844	3844	13 2022, the rate of tax shall be as follows for transactions in
3845	3845	14 which the selling price of the motor vehicle is less than
3846	3846	15 $15,000:
3847	3847	16 (1) if one year or less has transpired after the model
3848	3848	17 year of the vehicle, then the applicable tax is $465;
3849	3849	18 (2) if 2 years have transpired after the model year of
3850	3850	19 the motor vehicle, then the applicable tax is $365;
3851	3851	20 (3) if 3 years have transpired after the model year of
3852	3852	21 the motor vehicle, then the applicable tax is $290;
3853	3853	22 (4) if 4 years have transpired after the model year of
3854	3854	23 the motor vehicle, then the applicable tax is $240;
3855	3855	24 (5) if 5 years have transpired after the model year of
3856	3856	25 the motor vehicle, then the applicable tax is $190;
3857	3857	26 (6) if 6 years have transpired after the model year of
3858	3858
3859	3859
3860	3860
3861	3861
3862	3862
3863	3863	SB0133 - 106 - LRB104 03841 HLH 13865 b
3864	3864
3865	3865	1 10 40
3866	3866	2 over 10 25
3867	3867
3868	3868
3869	3869	7 Selling Price Applicable Tax
3870	3870	8 $15,000 - $19,999 $ 750
3871	3871	9 $20,000 - $24,999 $1,000
3872	3872	10 $25,000 - $29,999 $1,250
3873	3873	11 $30,000 and over $1,500
3874	3874
3875	3875
3876	3876	SB0133- 107 -LRB104 03841 HLH 13865 b SB0133 - 107 - LRB104 03841 HLH 13865 b
3877	3877	SB0133 - 107 - LRB104 03841 HLH 13865 b
3878	3878	1 the motor vehicle, then the applicable tax is $165;
3879	3879	2 (7) if 7 years have transpired after the model year of
3880	3880	3 the motor vehicle, then the applicable tax is $155;
3881	3881	4 (8) if 8 years have transpired after the model year of
3882	3882	5 the motor vehicle, then the applicable tax is $140;
3883	3883	6 (9) if 9 years have transpired after the model year of
3884	3884	7 the motor vehicle, then the applicable tax is $125;
3885	3885	8 (10) if 10 years have transpired after the model year
3886	3886	9 of the motor vehicle, then the applicable tax is $115; and
3887	3887	10 (11) if more than 10 years have transpired after the
3888	3888	11 model year of the motor vehicle, then the applicable tax
3889	3889	12 is $100.
3890	3890	13 Except as hereinafter provided, beginning on January 1,
3891	3891	14 2022, the rate of tax shall be as follows for transactions in
3892	3892	15 which the selling price of the motor vehicle is $15,000 or
3893	3893	16 more:
3894	3894	17 (1) if the selling price is $15,000 or more, but less
3895	3895	18 than $20,000, then the applicable tax shall be $850;
3896	3896	19 (2) if the selling price is $20,000 or more, but less
3897	3897	20 than $25,000, then the applicable tax shall be $1,100;
3898	3898	21 (3) if the selling price is $25,000 or more, but less
3899	3899	22 than $30,000, then the applicable tax shall be $1,350;
3900	3900	23 (4) if the selling price is $30,000 or more, but less
3901	3901	24 than $50,000, then the applicable tax shall be $1,600;
3902	3902	25 (5) if the selling price is $50,000 or more, but less
3903	3903	26 than $100,000, then the applicable tax shall be $2,600;
3904	3904
3905	3905
3906	3906
3907	3907
3908	3908
3909	3909	SB0133 - 107 - LRB104 03841 HLH 13865 b
3910	3910
3911	3911
3912	3912	SB0133- 108 -LRB104 03841 HLH 13865 b SB0133 - 108 - LRB104 03841 HLH 13865 b
3913	3913	SB0133 - 108 - LRB104 03841 HLH 13865 b
3914	3914	1 (6) if the selling price is $100,000 or more, but less
3915	3915	2 than $1,000,000, then the applicable tax shall be $5,100;
3916	3916	3 and
3917	3917	4 (7) if the selling price is $1,000,000 or more, then
3918	3918	5 the applicable tax shall be $10,100.
3919	3919	6 For the following transactions, the tax rate shall be $15 for
3920	3920	7 each motor vehicle acquired in such transaction:
3921	3921	8 (i) when the transferee or purchaser is the spouse,
3922	3922	9 mother, father, brother, sister or child of the
3923	3923	10 transferor;
3924	3924	11 (ii) when the transfer is a gift to a beneficiary in
3925	3925	12 the administration of an estate, including, but not
3926	3926	13 limited to, the administration of an inter vivos trust
3927	3927	14 that became irrevocable upon the death of a grantor, and
3928	3928	15 the beneficiary is not a surviving spouse;
3929	3929	16 (iii) when a motor vehicle which has once been
3930	3930	17 subjected to the Illinois retailers' occupation tax or use
3931	3931	18 tax is transferred in connection with the organization,
3932	3932	19 reorganization, dissolution or partial liquidation of an
3933	3933	20 incorporated or unincorporated business wherein the
3934	3934	21 beneficial ownership is not changed.
3935	3935	22 A claim that the transaction is taxable under subparagraph
3936	3936	23 (i) shall be supported by such proof of family relationship as
3937	3937	24 provided by rules of the Department.
3938	3938	25 For a transaction in which a motorcycle, motor driven
3939	3939	26 cycle or moped is acquired the tax rate shall be $25.
3940	3940
3941	3941
3942	3942
3943	3943
3944	3944
3945	3945	SB0133 - 108 - LRB104 03841 HLH 13865 b
3946	3946
3947	3947
3948	3948	SB0133- 109 -LRB104 03841 HLH 13865 b SB0133 - 109 - LRB104 03841 HLH 13865 b
3949	3949	SB0133 - 109 - LRB104 03841 HLH 13865 b
3950	3950
3951	3951
3952	3952
3953	3953
3954	3954
3955	3955	SB0133 - 109 - LRB104 03841 HLH 13865 b