103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4227

 

Introduced 11/8/2023, by Rep. Amy L. Grant

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain supplies purchased by a day care center are exempt from the taxes imposed under those Acts. Effective immediately.


LRB103 34153 HLH 63973 b

 

 

A BILL FOR

 

HB4227LRB103 34153 HLH 63973 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active
24exemption identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon
11a graphic arts product. Beginning on July 1, 2017, graphic
12arts machinery and equipment is included in the manufacturing
13and assembling machinery and equipment exemption under
14paragraph (18).
15    (7) Farm chemicals.
16    (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26    (11) Farm machinery and equipment, both new and used,

 

 

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

 

 

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

 

 

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

 

 

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1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8    (17) Until July 1, 2003, distillation machinery and
9equipment, sold as a unit or kit, assembled or installed by the
10retailer, certified by the user to be used only for the
11production of ethyl alcohol that will be used for consumption
12as motor fuel or as a component of motor fuel for the personal
13use of the user, and not subject to sale or resale.
14    (18) Manufacturing and assembling machinery and equipment
15used primarily in the process of manufacturing or assembling
16tangible personal property for wholesale or retail sale or
17lease, whether that sale or lease is made directly by the
18manufacturer or by some other person, whether the materials
19used in the process are owned by the manufacturer or some other
20person, or whether that sale or lease is made apart from or as
21an incident to the seller's engaging in the service occupation
22of producing machines, tools, dies, jigs, patterns, gauges, or
23other similar items of no commercial value on special order
24for a particular purchaser. The exemption provided by this
25paragraph (18) includes production related tangible personal
26property, as defined in Section 3-50, purchased on or after

 

 

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1July 1, 2019. The exemption provided by this paragraph (18)
2does not include machinery and equipment used in (i) the
3generation of electricity for wholesale or retail sale; (ii)
4the generation or treatment of natural or artificial gas for
5wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions
9of Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption. Beginning on July 1,
112017, the exemption provided by this paragraph (18) includes,
12but is not limited to, graphic arts machinery and equipment,
13as defined in paragraph (6) of this Section.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the

 

 

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1provisions of Section 3-90, and the exemption provided for
2under this item (21) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 for such taxes paid during the period
5beginning May 30, 2000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other non-exempt manner, the lessor shall be liable for
17the tax imposed under this Act or the Service Use Tax Act, as
18the case may be, based on the fair market value of the property
19at the time the non-qualifying use occurs. No lessor shall
20collect or attempt to collect an amount (however designated)
21that purports to reimburse that lessor for the tax imposed by
22this Act or the Service Use Tax Act, as the case may be, if the
23tax has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

 

 

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1for any reason, the lessor is liable to pay that amount to the
2Department.
3    (23) Personal property purchased by a lessor who leases
4the property, under a lease of one year or longer executed or
5in effect at the time the lessor would otherwise be subject to
6the tax imposed by this Act, to a governmental body that has
7been issued an active sales tax exemption identification
8number by the Department under Section 1g of the Retailers'
9Occupation Tax Act. If the property is leased in a manner that
10does not qualify for this exemption or used in any other
11non-exempt manner, the lessor shall be liable for the tax
12imposed under this Act or the Service Use Tax Act, as the case
13may be, based on the fair market value of the property at the
14time the non-qualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department.
24    (24) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated

 

 

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (25) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including but not limited to municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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1corporation, limited liability company, society, association,
2foundation, or institution that is determined by the
3Department to be organized and operated exclusively for
4educational purposes. For purposes of this exemption, "a
5corporation, limited liability company, society, association,
6foundation, or institution organized and operated exclusively
7for educational purposes" means all tax-supported public
8schools, private schools that offer systematic instruction in
9useful branches of learning by methods common to public
10schools and that compare favorably in their scope and
11intensity with the course of study presented in tax-supported
12schools, and vocational or technical schools or institutes
13organized and operated exclusively to provide a course of
14study of not less than 6 weeks duration and designed to prepare
15individuals to follow a trade or to pursue a manual,
16technical, mechanical, industrial, business, or commercial
17occupation.
18    (28) Beginning January 1, 2000, personal property,
19including food, purchased through fundraising events for the
20benefit of a public or private elementary or secondary school,
21a group of those schools, or one or more school districts if
22the events are sponsored by an entity recognized by the school
23district that consists primarily of volunteers and includes
24parents and teachers of the school children. This paragraph
25does not apply to fundraising events (i) for the benefit of
26private home instruction or (ii) for which the fundraising

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-90.
6    (29) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-90.
16    (30) Beginning January 1, 2001 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19soft drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or in a licensed facility as defined

 

 

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1in the ID/DD Community Care Act, the MC/DD Act, or the
2Specialized Mental Health Rehabilitation Act of 2013.
3    (31) Beginning on August 2, 2001 (the effective date of
4Public Act 92-227), computers and communications equipment
5utilized for any hospital purpose and equipment used in the
6diagnosis, analysis, or treatment of hospital patients
7purchased by a lessor who leases the equipment, under a lease
8of one year or longer executed or in effect at the time the
9lessor would otherwise be subject to the tax imposed by this
10Act, to a hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act. If the equipment is leased
13in a manner that does not qualify for this exemption or is used
14in any other nonexempt manner, the lessor shall be liable for
15the tax imposed under this Act or the Service Use Tax Act, as
16the case may be, based on the fair market value of the property
17at the time the nonqualifying use occurs. No lessor shall
18collect or attempt to collect an amount (however designated)
19that purports to reimburse that lessor for the tax imposed by
20this Act or the Service Use Tax Act, as the case may be, if the
21tax has not been paid by the lessor. If a lessor improperly
22collects any such amount from the lessee, the lessee shall
23have a legal right to claim a refund of that amount from the
24lessor. If, however, that amount is not refunded to the lessee
25for any reason, the lessor is liable to pay that amount to the
26Department. This paragraph is exempt from the provisions of

 

 

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1Section 3-90.
2    (32) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), personal property purchased by a lessor
4who leases the property, under a lease of one year or longer
5executed or in effect at the time the lessor would otherwise be
6subject to the tax imposed by this Act, to a governmental body
7that has been issued an active sales tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the property is leased
10in a manner that does not qualify for this exemption or used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Service Use Tax Act, as the
13case may be, based on the fair market value of the property at
14the time the nonqualifying use occurs. No lessor shall collect
15or attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-90.
25    (33) On and after July 1, 2003 and through June 30, 2004,
26the use in this State of motor vehicles of the second division

 

 

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1with a gross vehicle weight in excess of 8,000 pounds and that
2are subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4July 1, 2004 and through June 30, 2005, the use in this State
5of motor vehicles of the second division: (i) with a gross
6vehicle weight rating in excess of 8,000 pounds; (ii) that are
7subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9are primarily used for commercial purposes. Through June 30,
102005, this exemption applies to repair and replacement parts
11added after the initial purchase of such a motor vehicle if
12that motor vehicle is used in a manner that would qualify for
13the rolling stock exemption otherwise provided for in this
14Act. For purposes of this paragraph, the term "used for
15commercial purposes" means the transportation of persons or
16property in furtherance of any commercial or industrial
17enterprise, whether for-hire or not.
18    (34) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-90.
25    (35) Beginning January 1, 2010 and continuing through
26December 31, 2024, materials, parts, equipment, components,

 

 

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1and furnishings incorporated into or upon an aircraft as part
2of the modification, refurbishment, completion, replacement,
3repair, or maintenance of the aircraft. This exemption
4includes consumable supplies used in the modification,
5refurbishment, completion, replacement, repair, and
6maintenance of aircraft, but excludes any materials, parts,
7equipment, components, and consumable supplies used in the
8modification, replacement, repair, and maintenance of aircraft
9engines or power plants, whether such engines or power plants
10are installed or uninstalled upon any such aircraft.
11"Consumable supplies" include, but are not limited to,
12adhesive, tape, sandpaper, general purpose lubricants,
13cleaning solution, latex gloves, and protective films. This
14exemption applies only to the use of qualifying tangible
15personal property by persons who modify, refurbish, complete,
16repair, replace, or maintain aircraft and who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part
24129 of the Federal Aviation Regulations. The changes made to
25this paragraph (35) by Public Act 98-534 are declarative of
26existing law. It is the intent of the General Assembly that the

 

 

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1exemption under this paragraph (35) applies continuously from
2January 1, 2010 through December 31, 2024; however, no claim
3for credit or refund is allowed for taxes paid as a result of
4the disallowance of this exemption on or after January 1, 2015
5and prior to February 5, 2020 (the effective date of Public Act
6101-629) this amendatory Act of the 101st General Assembly.
7    (36) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-90.
22    (37) Beginning January 1, 2017 and through December 31,
232026, menstrual pads, tampons, and menstrual cups.
24    (38) Merchandise that is subject to the Rental Purchase
25Agreement Occupation and Use Tax. The purchaser must certify
26that the item is purchased to be rented subject to a rental

 

 

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1purchase agreement, as defined in the Rental Purchase
2Agreement Act, and provide proof of registration under the
3Rental Purchase Agreement Occupation and Use Tax Act. This
4paragraph is exempt from the provisions of Section 3-90.
5    (39) Tangible personal property purchased by a purchaser
6who is exempt from the tax imposed by this Act by operation of
7federal law. This paragraph is exempt from the provisions of
8Section 3-90.
9    (40) Qualified tangible personal property used in the
10construction or operation of a data center that has been
11granted a certificate of exemption by the Department of
12Commerce and Economic Opportunity, whether that tangible
13personal property is purchased by the owner, operator, or
14tenant of the data center or by a contractor or subcontractor
15of the owner, operator, or tenant. Data centers that would
16have qualified for a certificate of exemption prior to January
171, 2020 had Public Act 101-31 been in effect may apply for and
18obtain an exemption for subsequent purchases of computer
19equipment or enabling software purchased or leased to upgrade,
20supplement, or replace computer equipment or enabling software
21purchased or leased in the original investment that would have
22qualified.
23    The Department of Commerce and Economic Opportunity shall
24grant a certificate of exemption under this item (40) to
25qualified data centers as defined by Section 605-1025 of the
26Department of Commerce and Economic Opportunity Law of the

 

 

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1Civil Administrative Code of Illinois.
2    For the purposes of this item (40):
3        "Data center" means a building or a series of
4    buildings rehabilitated or constructed to house working
5    servers in one physical location or multiple sites within
6    the State of Illinois.
7        "Qualified tangible personal property" means:
8    electrical systems and equipment; climate control and
9    chilling equipment and systems; mechanical systems and
10    equipment; monitoring and secure systems; emergency
11    generators; hardware; computers; servers; data storage
12    devices; network connectivity equipment; racks; cabinets;
13    telecommunications cabling infrastructure; raised floor
14    systems; peripheral components or systems; software;
15    mechanical, electrical, or plumbing systems; battery
16    systems; cooling systems and towers; temperature control
17    systems; other cabling; and other data center
18    infrastructure equipment and systems necessary to operate
19    qualified tangible personal property, including fixtures;
20    and component parts of any of the foregoing, including
21    installation, maintenance, repair, refurbishment, and
22    replacement of qualified tangible personal property to
23    generate, transform, transmit, distribute, or manage
24    electricity necessary to operate qualified tangible
25    personal property; and all other tangible personal
26    property that is essential to the operations of a computer

 

 

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1    data center. The term "qualified tangible personal
2    property" also includes building materials physically
3    incorporated in to the qualifying data center. To document
4    the exemption allowed under this Section, the retailer
5    must obtain from the purchaser a copy of the certificate
6    of eligibility issued by the Department of Commerce and
7    Economic Opportunity.
8    This item (40) is exempt from the provisions of Section
93-90.
10    (41) Beginning July 1, 2022, breast pumps, breast pump
11collection and storage supplies, and breast pump kits. This
12item (41) is exempt from the provisions of Section 3-90. As
13used in this item (41):
14        "Breast pump" means an electrically controlled or
15    manually controlled pump device designed or marketed to be
16    used to express milk from a human breast during lactation,
17    including the pump device and any battery, AC adapter, or
18    other power supply unit that is used to power the pump
19    device and is packaged and sold with the pump device at the
20    time of sale.
21        "Breast pump collection and storage supplies" means
22    items of tangible personal property designed or marketed
23    to be used in conjunction with a breast pump to collect
24    milk expressed from a human breast and to store collected
25    milk until it is ready for consumption.
26        "Breast pump collection and storage supplies"

 

 

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1    includes, but is not limited to: breast shields and breast
2    shield connectors; breast pump tubes and tubing adapters;
3    breast pump valves and membranes; backflow protectors and
4    backflow protector adaptors; bottles and bottle caps
5    specific to the operation of the breast pump; and breast
6    milk storage bags.
7        "Breast pump collection and storage supplies" does not
8    include: (1) bottles and bottle caps not specific to the
9    operation of the breast pump; (2) breast pump travel bags
10    and other similar carrying accessories, including ice
11    packs, labels, and other similar products; (3) breast pump
12    cleaning supplies; (4) nursing bras, bra pads, breast
13    shells, and other similar products; and (5) creams,
14    ointments, and other similar products that relieve
15    breastfeeding-related symptoms or conditions of the
16    breasts or nipples, unless sold as part of a breast pump
17    kit that is pre-packaged by the breast pump manufacturer
18    or distributor.
19        "Breast pump kit" means a kit that: (1) contains no
20    more than a breast pump, breast pump collection and
21    storage supplies, a rechargeable battery for operating the
22    breast pump, a breastmilk cooler, bottle stands, ice
23    packs, and a breast pump carrying case; and (2) is
24    pre-packaged as a breast pump kit by the breast pump
25    manufacturer or distributor.
26    (42) (41) Tangible personal property sold by or on behalf

 

 

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1of the State Treasurer pursuant to the Revised Uniform
2Unclaimed Property Act. This item (42) (41) is exempt from the
3provisions of Section 3-90.
4    (43) On and after January 1, 2024, essential supplies
5purchased by a day care center that has been granted a
6certificate of exemption by the Department. The Department of
7Children and Family Services may share information with the
8Department of Revenue for the purpose of administering the
9provisions of this exemption. This item (43) is exempt from
10the provisions of Section 3-90.
11    As used in this item (43):
12    "Day care center" has the meaning given to that term in
13Section 2.09 of the Child Care Act of 1969.
14    "Essential supplies" means items designated, by rule, as
15essential supplies by the Department of Children and Family
16Services, including, but not limited to: food and beverages to
17be consumed by a child as a snack or meal at the day care
18center, including, but not limited to, fruits and vegetables,
19whole grains, proteins, water, and reduced fat or skim milk;
20diapers; wipes; first aid kits; smoke detectors; nap mats; and
21soap and hand sanitizer.
22(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
23101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
246-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
25102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
26eff. 5-27-22; revised 8-1-22.)
 

 

 

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1    Section 10. The Service Use Tax Act is amended by changing
2Section 3-5 as follows:
 
3    (35 ILCS 110/3-5)
4    Sec. 3-5. Exemptions. Use of the following tangible
5personal property is exempt from the tax imposed by this Act:
6    (1) Personal property purchased from a corporation,
7society, association, foundation, institution, or
8organization, other than a limited liability company, that is
9organized and operated as a not-for-profit service enterprise
10for the benefit of persons 65 years of age or older if the
11personal property was not purchased by the enterprise for the
12purpose of resale by the enterprise.
13    (2) Personal property purchased by a non-profit Illinois
14county fair association for use in conducting, operating, or
15promoting the county fair.
16    (3) Personal property purchased by a not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service

 

 

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1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after July 1, 2001 (the
3effective date of Public Act 92-35), however, an entity
4otherwise eligible for this exemption shall not make tax-free
5purchases unless it has an active identification number issued
6by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product. Beginning on
20July 1, 2017, graphic arts machinery and equipment is included
21in the manufacturing and assembling machinery and equipment
22exemption under Section 2 of this Act.
23    (6) Personal property purchased from a teacher-sponsored
24student organization affiliated with an elementary or
25secondary school located in Illinois.
26    (7) Farm machinery and equipment, both new and used,

 

 

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

 

 

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1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals. This item (7) is exempt from the
8provisions of Section 3-75.
9    (8) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (9) Proceeds of mandatory service charges separately

 

 

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

 

 

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after August 16, 2013
7(the effective date of Public Act 98-456) for such taxes paid
8during the period beginning July 1, 2003 and ending on August
916, 2013 (the effective date of Public Act 98-456).
10    (13) Semen used for artificial insemination of livestock
11for direct agricultural production.
12    (14) Horses, or interests in horses, registered with and
13meeting the requirements of any of the Arabian Horse Club
14Registry of America, Appaloosa Horse Club, American Quarter
15Horse Association, United States Trotting Association, or
16Jockey Club, as appropriate, used for purposes of breeding or
17racing for prizes. This item (14) is exempt from the
18provisions of Section 3-75, and the exemption provided for
19under this item (14) applies for all periods beginning May 30,
201995, but no claim for credit or refund is allowed on or after
21January 1, 2008 (the effective date of Public Act 95-88) for
22such taxes paid during the period beginning May 30, 2000 and
23ending on January 1, 2008 (the effective date of Public Act
2495-88).
25    (15) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in
3the performance of infrastructure repairs in this State,
4including but not limited to municipal roads and streets,
5access roads, bridges, sidewalks, waste disposal systems,
6water and sewer line extensions, water distribution and
7purification facilities, storm water drainage and retention
8facilities, and sewage treatment facilities, resulting from a
9State or federally declared disaster in Illinois or bordering
10Illinois when such repairs are initiated on facilities located
11in the declared disaster area within 6 months after the
12disaster.
13    (19) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" as that term is
15used in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-75.
17    (20) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the
21Department to be organized and operated exclusively for
22educational purposes. For purposes of this exemption, "a
23corporation, limited liability company, society, association,
24foundation, or institution organized and operated exclusively
25for educational purposes" means all tax-supported public
26schools, private schools that offer systematic instruction in

 

 

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1useful branches of learning by methods common to public
2schools and that compare favorably in their scope and
3intensity with the course of study presented in tax-supported
4schools, and vocational or technical schools or institutes
5organized and operated exclusively to provide a course of
6study of not less than 6 weeks duration and designed to prepare
7individuals to follow a trade or to pursue a manual,
8technical, mechanical, industrial, business, or commercial
9occupation.
10    (21) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-75.
24    (22) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and

 

 

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1other items, and replacement parts for these machines.
2Beginning January 1, 2002 and through June 30, 2003, machines
3and parts for machines used in commercial, coin-operated
4amusement and vending business if a use or occupation tax is
5paid on the gross receipts derived from the use of the
6commercial, coin-operated amusement and vending machines. This
7paragraph is exempt from the provisions of Section 3-75.
8    (23) Beginning August 23, 2001 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages,
11soft drinks, and food that has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (24) Beginning on August 2, 2001 (the effective date of
22Public Act 92-227), computers and communications equipment
23utilized for any hospital purpose and equipment used in the
24diagnosis, analysis, or treatment of hospital patients
25purchased by a lessor who leases the equipment, under a lease
26of one year or longer executed or in effect at the time the

 

 

HB4227- 35 -LRB103 34153 HLH 63973 b

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

 

 

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1Occupation Tax Act. If the property is leased in a manner that
2does not qualify for this exemption or is used in any other
3nonexempt manner, the lessor shall be liable for the tax
4imposed under this Act or the Use Tax Act, as the case may be,
5based on the fair market value of the property at the time the
6nonqualifying use occurs. No lessor shall collect or attempt
7to collect an amount (however designated) that purports to
8reimburse that lessor for the tax imposed by this Act or the
9Use Tax Act, as the case may be, if the tax has not been paid
10by the lessor. If a lessor improperly collects any such amount
11from the lessee, the lessee shall have a legal right to claim a
12refund of that amount from the lessor. If, however, that
13amount is not refunded to the lessee for any reason, the lessor
14is liable to pay that amount to the Department. This paragraph
15is exempt from the provisions of Section 3-75.
16    (26) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued
21under Title IV of the Environmental Protection Act. This
22paragraph is exempt from the provisions of Section 3-75.
23    (27) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

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1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the use of qualifying tangible
13personal property transferred incident to the modification,
14refurbishment, completion, replacement, repair, or maintenance
15of aircraft by persons who (i) hold an Air Agency Certificate
16and are empowered to operate an approved repair station by the
17Federal Aviation Administration, (ii) have a Class IV Rating,
18and (iii) conduct operations in accordance with Part 145 of
19the Federal Aviation Regulations. The exemption does not
20include aircraft operated by a commercial air carrier
21providing scheduled passenger air service pursuant to
22authority issued under Part 121 or Part 129 of the Federal
23Aviation Regulations. The changes made to this paragraph (27)
24by Public Act 98-534 are declarative of existing law. It is the
25intent of the General Assembly that the exemption under this
26paragraph (27) applies continuously from January 1, 2010

 

 

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1through December 31, 2024; however, no claim for credit or
2refund is allowed for taxes paid as a result of the
3disallowance of this exemption on or after January 1, 2015 and
4prior to February 5, 2020 (the effective date of Public Act
5101-629) this amendatory Act of the 101st General Assembly.
6    (28) Tangible personal property purchased by a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt
15instruments issued by the public-facilities corporation in
16connection with the development of the municipal convention
17hall. This exemption includes existing public-facilities
18corporations as provided in Section 11-65-25 of the Illinois
19Municipal Code. This paragraph is exempt from the provisions
20of Section 3-75.
21    (29) Beginning January 1, 2017 and through December 31,
222026, menstrual pads, tampons, and menstrual cups.
23    (30) Tangible personal property transferred to a purchaser
24who is exempt from the tax imposed by this Act by operation of
25federal law. This paragraph is exempt from the provisions of
26Section 3-75.

 

 

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1    (31) Qualified tangible personal property used in the
2construction or operation of a data center that has been
3granted a certificate of exemption by the Department of
4Commerce and Economic Opportunity, whether that tangible
5personal property is purchased by the owner, operator, or
6tenant of the data center or by a contractor or subcontractor
7of the owner, operator, or tenant. Data centers that would
8have qualified for a certificate of exemption prior to January
91, 2020 had Public Act 101-31 this amendatory Act of the 101st
10General Assembly been in effect, may apply for and obtain an
11exemption for subsequent purchases of computer equipment or
12enabling software purchased or leased to upgrade, supplement,
13or replace computer equipment or enabling software purchased
14or leased in the original investment that would have
15qualified.
16    The Department of Commerce and Economic Opportunity shall
17grant a certificate of exemption under this item (31) to
18qualified data centers as defined by Section 605-1025 of the
19Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    For the purposes of this item (31):
22        "Data center" means a building or a series of
23    buildings rehabilitated or constructed to house working
24    servers in one physical location or multiple sites within
25    the State of Illinois.
26        "Qualified tangible personal property" means:

 

 

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

 

 

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1    This item (31) is exempt from the provisions of Section
23-75.
3    (32) Beginning July 1, 2022, breast pumps, breast pump
4collection and storage supplies, and breast pump kits. This
5item (32) is exempt from the provisions of Section 3-75. As
6used in this item (32):
7        "Breast pump" means an electrically controlled or
8    manually controlled pump device designed or marketed to be
9    used to express milk from a human breast during lactation,
10    including the pump device and any battery, AC adapter, or
11    other power supply unit that is used to power the pump
12    device and is packaged and sold with the pump device at the
13    time of sale.
14        "Breast pump collection and storage supplies" means
15    items of tangible personal property designed or marketed
16    to be used in conjunction with a breast pump to collect
17    milk expressed from a human breast and to store collected
18    milk until it is ready for consumption.
19        "Breast pump collection and storage supplies"
20    includes, but is not limited to: breast shields and breast
21    shield connectors; breast pump tubes and tubing adapters;
22    breast pump valves and membranes; backflow protectors and
23    backflow protector adaptors; bottles and bottle caps
24    specific to the operation of the breast pump; and breast
25    milk storage bags.
26        "Breast pump collection and storage supplies" does not

 

 

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1    include: (1) bottles and bottle caps not specific to the
2    operation of the breast pump; (2) breast pump travel bags
3    and other similar carrying accessories, including ice
4    packs, labels, and other similar products; (3) breast pump
5    cleaning supplies; (4) nursing bras, bra pads, breast
6    shells, and other similar products; and (5) creams,
7    ointments, and other similar products that relieve
8    breastfeeding-related symptoms or conditions of the
9    breasts or nipples, unless sold as part of a breast pump
10    kit that is pre-packaged by the breast pump manufacturer
11    or distributor.
12        "Breast pump kit" means a kit that: (1) contains no
13    more than a breast pump, breast pump collection and
14    storage supplies, a rechargeable battery for operating the
15    breast pump, a breastmilk cooler, bottle stands, ice
16    packs, and a breast pump carrying case; and (2) is
17    pre-packaged as a breast pump kit by the breast pump
18    manufacturer or distributor.
19    (33) (32) Tangible personal property sold by or on behalf
20of the State Treasurer pursuant to the Revised Uniform
21Unclaimed Property Act. This item (33) (32) is exempt from the
22provisions of Section 3-75.
23    (34) On and after January 1, 2024, essential supplies
24purchased by a day care center that has been granted a
25certificate of exemption by the Department. The Department of
26Children and Family Services may share information with the

 

 

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1Department of Revenue for the purpose of administering the
2provisions of this exemption. This item (34) is exempt from
3the provisions of Section 3-75.
4    As used in this item (34):
5    "Day care center" has the meaning given to that term in
6Section 2.09 of the Child Care Act of 1969.
7    "Essential supplies" means items designated, by rule, as
8essential supplies by the Department of Children and Family
9Services, including, but not limited to: food and beverages to
10be consumed by a child as a snack or meal at the day care
11center, including, but not limited to, fruits and vegetables,
12whole grains, proteins, water, and reduced fat or skim milk;
13diapers; wipes; first aid kits; smoke detectors; nap mats; and
14soap and hand sanitizer.
15(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
16101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1770, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1875-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
19    Section 15. The Service Occupation Tax Act is amended by
20changing Section 3-5 as follows:
 
21    (35 ILCS 115/3-5)
22    Sec. 3-5. Exemptions. The following tangible personal
23property is exempt from the tax imposed by this Act:
24    (1) Personal property sold by a corporation, society,

 

 

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

 

 

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1United States of America, or the government of any foreign
2country, and bullion.
3    (5) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new
6and used, and including that manufactured on special order or
7purchased for lease, certified by the purchaser to be used
8primarily for graphic arts production. Equipment includes
9chemicals or chemicals acting as catalysts but only if the
10chemicals or chemicals acting as catalysts effect a direct and
11immediate change upon a graphic arts product. Beginning on
12July 1, 2017, graphic arts machinery and equipment is included
13in the manufacturing and assembling machinery and equipment
14exemption under Section 2 of this Act.
15    (6) Personal property sold by a teacher-sponsored student
16organization affiliated with an elementary or secondary school
17located in Illinois.
18    (7) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the
25Illinois Vehicle Code, farm machinery and agricultural
26chemical and fertilizer spreaders, and nurse wagons required

 

 

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1to be registered under Section 3-809 of the Illinois Vehicle
2Code, but excluding other motor vehicles required to be
3registered under the Illinois Vehicle Code. Horticultural
4polyhouses or hoop houses used for propagating, growing, or
5overwintering plants shall be considered farm machinery and
6equipment under this item (7). Agricultural chemical tender
7tanks and dry boxes shall include units sold separately from a
8motor vehicle required to be licensed and units sold mounted
9on a motor vehicle required to be licensed if the selling price
10of the tender is separately stated.
11    Farm machinery and equipment shall include precision
12farming equipment that is installed or purchased to be
13installed on farm machinery and equipment including, but not
14limited to, tractors, harvesters, sprayers, planters, seeders,
15or spreaders. Precision farming equipment includes, but is not
16limited to, soil testing sensors, computers, monitors,
17software, global positioning and mapping systems, and other
18such equipment.
19    Farm machinery and equipment also includes computers,
20sensors, software, and related equipment used primarily in the
21computer-assisted operation of production agriculture
22facilities, equipment, and activities such as, but not limited
23to, the collection, monitoring, and correlation of animal and
24crop data for the purpose of formulating animal diets and
25agricultural chemicals. This item (7) is exempt from the
26provisions of Section 3-55.

 

 

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1    (8) Until June 30, 2013, fuel and petroleum products sold
2to or used by an air common carrier, certified by the carrier
3to be used for consumption, shipment, or storage in the
4conduct of its business as an air common carrier, for a flight
5destined for or returning from a location or locations outside
6the United States without regard to previous or subsequent
7domestic stopovers.
8    Beginning July 1, 2013, fuel and petroleum products sold
9to or used by an air carrier, certified by the carrier to be
10used for consumption, shipment, or storage in the conduct of
11its business as an air common carrier, for a flight that (i) is
12engaged in foreign trade or is engaged in trade between the
13United States and any of its possessions and (ii) transports
14at least one individual or package for hire from the city of
15origination to the city of final destination on the same
16aircraft, without regard to a change in the flight number of
17that aircraft.
18    (9) Proceeds of mandatory service charges separately
19stated on customers' bills for the purchase and consumption of
20food and beverages, to the extent that the proceeds of the
21service charge are in fact turned over as tips or as a
22substitute for tips to the employees who participate directly
23in preparing, serving, hosting or cleaning up the food or
24beverage function with respect to which the service charge is
25imposed.
26    (10) Until July 1, 2003, oil field exploration, drilling,

 

 

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1and production equipment, including (i) rigs and parts of
2rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3pipe and tubular goods, including casing and drill strings,
4(iii) pumps and pump-jack units, (iv) storage tanks and flow
5lines, (v) any individual replacement part for oil field
6exploration, drilling, and production equipment, and (vi)
7machinery and equipment purchased for lease; but excluding
8motor vehicles required to be registered under the Illinois
9Vehicle Code.
10    (11) Photoprocessing machinery and equipment, including
11repair and replacement parts, both new and used, including
12that manufactured on special order, certified by the purchaser
13to be used primarily for photoprocessing, and including
14photoprocessing machinery and equipment purchased for lease.
15    (12) Until July 1, 2028, coal and aggregate exploration,
16mining, off-highway hauling, processing, maintenance, and
17reclamation equipment, including replacement parts and
18equipment, and including equipment purchased for lease, but
19excluding motor vehicles required to be registered under the
20Illinois Vehicle Code. The changes made to this Section by
21Public Act 97-767 apply on and after July 1, 2003, but no claim
22for credit or refund is allowed on or after August 16, 2013
23(the effective date of Public Act 98-456) for such taxes paid
24during the period beginning July 1, 2003 and ending on August
2516, 2013 (the effective date of Public Act 98-456).
26    (13) Beginning January 1, 1992 and through June 30, 2016,

 

 

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1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages,
3soft drinks and food that has been prepared for immediate
4consumption) and prescription and non-prescription medicines,
5drugs, medical appliances, and insulin, urine testing
6materials, syringes, and needles used by diabetics, for human
7use, when purchased for use by a person receiving medical
8assistance under Article V of the Illinois Public Aid Code who
9resides in a licensed long-term care facility, as defined in
10the Nursing Home Care Act, or in a licensed facility as defined
11in the ID/DD Community Care Act, the MC/DD Act, or the
12Specialized Mental Health Rehabilitation Act of 2013.
13    (14) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (15) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (15) is exempt from the
21provisions of Section 3-55, and the exemption provided for
22under this item (15) applies for all periods beginning May 30,
231995, but no claim for credit or refund is allowed on or after
24January 1, 2008 (the effective date of Public Act 95-88) for
25such taxes paid during the period beginning May 30, 2000 and
26ending on January 1, 2008 (the effective date of Public Act

 

 

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195-88).
2    (16) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients sold to a lessor
5who leases the equipment, under a lease of one year or longer
6executed or in effect at the time of the purchase, to a
7hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act.
10    (17) Personal property sold to a lessor who leases the
11property, under a lease of one year or longer executed or in
12effect at the time of the purchase, to a governmental body that
13has been issued an active tax exemption identification number
14by the Department under Section 1g of the Retailers'
15Occupation Tax Act.
16    (18) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is donated
19for disaster relief to be used in a State or federally declared
20disaster area in Illinois or bordering Illinois by a
21manufacturer or retailer that is registered in this State to a
22corporation, society, association, foundation, or institution
23that has been issued a sales tax exemption identification
24number by the Department that assists victims of the disaster
25who reside within the declared disaster area.
26    (19) Beginning with taxable years ending on or after

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in
3the performance of infrastructure repairs in this State,
4including but not limited to municipal roads and streets,
5access roads, bridges, sidewalks, waste disposal systems,
6water and sewer line extensions, water distribution and
7purification facilities, storm water drainage and retention
8facilities, and sewage treatment facilities, resulting from a
9State or federally declared disaster in Illinois or bordering
10Illinois when such repairs are initiated on facilities located
11in the declared disaster area within 6 months after the
12disaster.
13    (20) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" as that term is used
15in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-55.
17    (21) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the
21Department to be organized and operated exclusively for
22educational purposes. For purposes of this exemption, "a
23corporation, limited liability company, society, association,
24foundation, or institution organized and operated exclusively
25for educational purposes" means all tax-supported public
26schools, private schools that offer systematic instruction in

 

 

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1useful branches of learning by methods common to public
2schools and that compare favorably in their scope and
3intensity with the course of study presented in tax-supported
4schools, and vocational or technical schools or institutes
5organized and operated exclusively to provide a course of
6study of not less than 6 weeks duration and designed to prepare
7individuals to follow a trade or to pursue a manual,
8technical, mechanical, industrial, business, or commercial
9occupation.
10    (22) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-55.
24    (23) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and

 

 

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1other items, and replacement parts for these machines.
2Beginning January 1, 2002 and through June 30, 2003, machines
3and parts for machines used in commercial, coin-operated
4amusement and vending business if a use or occupation tax is
5paid on the gross receipts derived from the use of the
6commercial, coin-operated amusement and vending machines. This
7paragraph is exempt from the provisions of Section 3-55.
8    (24) Beginning on August 2, 2001 (the effective date of
9Public Act 92-227), computers and communications equipment
10utilized for any hospital purpose and equipment used in the
11diagnosis, analysis, or treatment of hospital patients sold to
12a lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time of the purchase, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act. This paragraph is exempt
17from the provisions of Section 3-55.
18    (25) Beginning on August 2, 2001 (the effective date of
19Public Act 92-227), personal property sold to a lessor who
20leases the property, under a lease of one year or longer
21executed or in effect at the time of the purchase, to a
22governmental body that has been issued an active tax exemption
23identification number by the Department under Section 1g of
24the Retailers' Occupation Tax Act. This paragraph is exempt
25from the provisions of Section 3-55.
26    (26) Beginning on January 1, 2002 and through June 30,

 

 

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12016, tangible personal property purchased from an Illinois
2retailer by a taxpayer engaged in centralized purchasing
3activities in Illinois who will, upon receipt of the property
4in Illinois, temporarily store the property in Illinois (i)
5for the purpose of subsequently transporting it outside this
6State for use or consumption thereafter solely outside this
7State or (ii) for the purpose of being processed, fabricated,
8or manufactured into, attached to, or incorporated into other
9tangible personal property to be transported outside this
10State and thereafter used or consumed solely outside this
11State. The Director of Revenue shall, pursuant to rules
12adopted in accordance with the Illinois Administrative
13Procedure Act, issue a permit to any taxpayer in good standing
14with the Department who is eligible for the exemption under
15this paragraph (26). The permit issued under this paragraph
16(26) shall authorize the holder, to the extent and in the
17manner specified in the rules adopted under this Act, to
18purchase tangible personal property from a retailer exempt
19from the taxes imposed by this Act. Taxpayers shall maintain
20all necessary books and records to substantiate the use and
21consumption of all such tangible personal property outside of
22the State of Illinois.
23    (27) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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1corporation that holds a valid water supply permit issued
2under Title IV of the Environmental Protection Act. This
3paragraph is exempt from the provisions of Section 3-55.
4    (28) Tangible personal property sold to a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt
13instruments issued by the public-facilities corporation in
14connection with the development of the municipal convention
15hall. This exemption includes existing public-facilities
16corporations as provided in Section 11-65-25 of the Illinois
17Municipal Code. This paragraph is exempt from the provisions
18of Section 3-55.
19    (29) Beginning January 1, 2010 and continuing through
20December 31, 2024, materials, parts, equipment, components,
21and furnishings incorporated into or upon an aircraft as part
22of the modification, refurbishment, completion, replacement,
23repair, or maintenance of the aircraft. This exemption
24includes consumable supplies used in the modification,
25refurbishment, completion, replacement, repair, and
26maintenance of aircraft, but excludes any materials, parts,

 

 

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1equipment, components, and consumable supplies used in the
2modification, replacement, repair, and maintenance of aircraft
3engines or power plants, whether such engines or power plants
4are installed or uninstalled upon any such aircraft.
5"Consumable supplies" include, but are not limited to,
6adhesive, tape, sandpaper, general purpose lubricants,
7cleaning solution, latex gloves, and protective films. This
8exemption applies only to the transfer of qualifying tangible
9personal property incident to the modification, refurbishment,
10completion, replacement, repair, or maintenance of an aircraft
11by persons who (i) hold an Air Agency Certificate and are
12empowered to operate an approved repair station by the Federal
13Aviation Administration, (ii) have a Class IV Rating, and
14(iii) conduct operations in accordance with Part 145 of the
15Federal Aviation Regulations. The exemption does not include
16aircraft operated by a commercial air carrier providing
17scheduled passenger air service pursuant to authority issued
18under Part 121 or Part 129 of the Federal Aviation
19Regulations. The changes made to this paragraph (29) by Public
20Act 98-534 are declarative of existing law. It is the intent of
21the General Assembly that the exemption under this paragraph
22(29) applies continuously from January 1, 2010 through
23December 31, 2024; however, no claim for credit or refund is
24allowed for taxes paid as a result of the disallowance of this
25exemption on or after January 1, 2015 and prior to February 5,
262020 (the effective date of Public Act 101-629) this

 

 

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1amendatory Act of the 101st General Assembly.
2    (30) Beginning January 1, 2017 and through December 31,
32026, menstrual pads, tampons, and menstrual cups.
4    (31) Tangible personal property transferred to a purchaser
5who is exempt from tax by operation of federal law. This
6paragraph is exempt from the provisions of Section 3-55.
7    (32) Qualified tangible personal property used in the
8construction or operation of a data center that has been
9granted a certificate of exemption by the Department of
10Commerce and Economic Opportunity, whether that tangible
11personal property is purchased by the owner, operator, or
12tenant of the data center or by a contractor or subcontractor
13of the owner, operator, or tenant. Data centers that would
14have qualified for a certificate of exemption prior to January
151, 2020 had Public Act 101-31 this amendatory Act of the 101st
16General Assembly been in effect, may apply for and obtain an
17exemption for subsequent purchases of computer equipment or
18enabling software purchased or leased to upgrade, supplement,
19or replace computer equipment or enabling software purchased
20or leased in the original investment that would have
21qualified.
22    The Department of Commerce and Economic Opportunity shall
23grant a certificate of exemption under this item (32) to
24qualified data centers as defined by Section 605-1025 of the
25Department of Commerce and Economic Opportunity Law of the
26Civil Administrative Code of Illinois.

 

 

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

 

 

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1    property" also includes building materials physically
2    incorporated in to the qualifying data center. To document
3    the exemption allowed under this Section, the retailer
4    must obtain from the purchaser a copy of the certificate
5    of eligibility issued by the Department of Commerce and
6    Economic Opportunity.
7    This item (32) is exempt from the provisions of Section
83-55.
9    (33) Beginning July 1, 2022, breast pumps, breast pump
10collection and storage supplies, and breast pump kits. This
11item (33) is exempt from the provisions of Section 3-55. As
12used in this item (33):
13        "Breast pump" means an electrically controlled or
14    manually controlled pump device designed or marketed to be
15    used to express milk from a human breast during lactation,
16    including the pump device and any battery, AC adapter, or
17    other power supply unit that is used to power the pump
18    device and is packaged and sold with the pump device at the
19    time of sale.
20        "Breast pump collection and storage supplies" means
21    items of tangible personal property designed or marketed
22    to be used in conjunction with a breast pump to collect
23    milk expressed from a human breast and to store collected
24    milk until it is ready for consumption.
25        "Breast pump collection and storage supplies"
26    includes, but is not limited to: breast shields and breast

 

 

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1    shield connectors; breast pump tubes and tubing adapters;
2    breast pump valves and membranes; backflow protectors and
3    backflow protector adaptors; bottles and bottle caps
4    specific to the operation of the breast pump; and breast
5    milk storage bags.
6        "Breast pump collection and storage supplies" does not
7    include: (1) bottles and bottle caps not specific to the
8    operation of the breast pump; (2) breast pump travel bags
9    and other similar carrying accessories, including ice
10    packs, labels, and other similar products; (3) breast pump
11    cleaning supplies; (4) nursing bras, bra pads, breast
12    shells, and other similar products; and (5) creams,
13    ointments, and other similar products that relieve
14    breastfeeding-related symptoms or conditions of the
15    breasts or nipples, unless sold as part of a breast pump
16    kit that is pre-packaged by the breast pump manufacturer
17    or distributor.
18        "Breast pump kit" means a kit that: (1) contains no
19    more than a breast pump, breast pump collection and
20    storage supplies, a rechargeable battery for operating the
21    breast pump, a breastmilk cooler, bottle stands, ice
22    packs, and a breast pump carrying case; and (2) is
23    pre-packaged as a breast pump kit by the breast pump
24    manufacturer or distributor.
25    (34) (33) Tangible personal property sold by or on behalf
26of the State Treasurer pursuant to the Revised Uniform

 

 

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1Unclaimed Property Act. This item (34) (33) is exempt from the
2provisions of Section 3-55.
3    (35) On and after January 1, 2024, essential supplies
4purchased by a day care center that has been granted a
5certificate of exemption by the Department. The Department of
6Children and Family Services may share information with the
7Department of Revenue for the purpose of administering the
8provisions of this exemption. This item (35) is exempt from
9the provisions of Section 3-55.
10    As used in this item (35):
11    "Day care center" has the meaning given to that term in
12Section 2.09 of the Child Care Act of 1969.
13    "Essential supplies" means items designated, by rule, as
14essential supplies by the Department of Children and Family
15Services, including, but not limited to: food and beverages to
16be consumed by a child as a snack or meal at the day care
17center, including, but not limited to, fruits and vegetables,
18whole grains, proteins, water, and reduced fat or skim milk;
19diapers; wipes; first aid kits; smoke detectors; nap mats; and
20soap and hand sanitizer.
21(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
22101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2370, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2475-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
25    Section 20. The Retailers' Occupation Tax Act is amended

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    foundation, institution, or organization that has no
2    compensated officers or employees and that is organized
3    and operated primarily for the recreation of persons 55
4    years of age or older. A limited liability company may
5    qualify for the exemption under this paragraph only if the
6    limited liability company is organized and operated
7    exclusively for educational purposes. On and after July 1,
8    1987, however, no entity otherwise eligible for this
9    exemption shall make tax-free purchases unless it has an
10    active identification number issued by the Department.
11        (12) (Blank).
12        (12-5) On and after July 1, 2003 and through June 30,
13    2004, motor vehicles of the second division with a gross
14    vehicle weight in excess of 8,000 pounds that are subject
15    to the commercial distribution fee imposed under Section
16    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
17    2004 and through June 30, 2005, the use in this State of
18    motor vehicles of the second division: (i) with a gross
19    vehicle weight rating in excess of 8,000 pounds; (ii) that
20    are subject to the commercial distribution fee imposed
21    under Section 3-815.1 of the Illinois Vehicle Code; and
22    (iii) that are primarily used for commercial purposes.
23    Through June 30, 2005, this exemption applies to repair
24    and replacement parts added after the initial purchase of
25    such a motor vehicle if that motor vehicle is used in a
26    manner that would qualify for the rolling stock exemption

 

 

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1    otherwise provided for in this Act. For purposes of this
2    paragraph, "used for commercial purposes" means the
3    transportation of persons or property in furtherance of
4    any commercial or industrial enterprise whether for-hire
5    or not.
6        (13) Proceeds from sales to owners, lessors, or
7    shippers of tangible personal property that is utilized by
8    interstate carriers for hire for use as rolling stock
9    moving in interstate commerce and equipment operated by a
10    telecommunications provider, licensed as a common carrier
11    by the Federal Communications Commission, which is
12    permanently installed in or affixed to aircraft moving in
13    interstate commerce.
14        (14) Machinery and equipment that will be used by the
15    purchaser, or a lessee of the purchaser, primarily in the
16    process of manufacturing or assembling tangible personal
17    property for wholesale or retail sale or lease, whether
18    the sale or lease is made directly by the manufacturer or
19    by some other person, whether the materials used in the
20    process are owned by the manufacturer or some other
21    person, or whether the sale or lease is made apart from or
22    as an incident to the seller's engaging in the service
23    occupation of producing machines, tools, dies, jigs,
24    patterns, gauges, or other similar items of no commercial
25    value on special order for a particular purchaser. The
26    exemption provided by this paragraph (14) does not include

 

 

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1    machinery and equipment used in (i) the generation of
2    electricity for wholesale or retail sale; (ii) the
3    generation or treatment of natural or artificial gas for
4    wholesale or retail sale that is delivered to customers
5    through pipes, pipelines, or mains; or (iii) the treatment
6    of water for wholesale or retail sale that is delivered to
7    customers through pipes, pipelines, or mains. The
8    provisions of Public Act 98-583 are declaratory of
9    existing law as to the meaning and scope of this
10    exemption. Beginning on July 1, 2017, the exemption
11    provided by this paragraph (14) includes, but is not
12    limited to, graphic arts machinery and equipment, as
13    defined in paragraph (4) of this Section.
14        (15) Proceeds of mandatory service charges separately
15    stated on customers' bills for purchase and consumption of
16    food and beverages, to the extent that the proceeds of the
17    service charge are in fact turned over as tips or as a
18    substitute for tips to the employees who participate
19    directly in preparing, serving, hosting or cleaning up the
20    food or beverage function with respect to which the
21    service charge is imposed.
22        (16) Tangible personal property sold to a purchaser if
23    the purchaser is exempt from use tax by operation of
24    federal law. This paragraph is exempt from the provisions
25    of Section 2-70.
26        (17) Tangible personal property sold to a common

 

 

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

 

 

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

 

 

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1    possessions and (ii) transports at least one individual or
2    package for hire from the city of origination to the city
3    of final destination on the same aircraft, without regard
4    to a change in the flight number of that aircraft.
5        (23) A transaction in which the purchase order is
6    received by a florist who is located outside Illinois, but
7    who has a florist located in Illinois deliver the property
8    to the purchaser or the purchaser's donee in Illinois.
9        (24) Fuel consumed or used in the operation of ships,
10    barges, or vessels that are used primarily in or for the
11    transportation of property or the conveyance of persons
12    for hire on rivers bordering on this State if the fuel is
13    delivered by the seller to the purchaser's barge, ship, or
14    vessel while it is afloat upon that bordering river.
15        (25) Except as provided in item (25-5) of this
16    Section, a motor vehicle sold in this State to a
17    nonresident even though the motor vehicle is delivered to
18    the nonresident in this State, if the motor vehicle is not
19    to be titled in this State, and if a drive-away permit is
20    issued to the motor vehicle as provided in Section 3-603
21    of the Illinois Vehicle Code or if the nonresident
22    purchaser has vehicle registration plates to transfer to
23    the motor vehicle upon returning to his or her home state.
24    The issuance of the drive-away permit or having the
25    out-of-state registration plates to be transferred is
26    prima facie evidence that the motor vehicle will not be

 

 

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1    titled in this State.
2        (25-5) The exemption under item (25) does not apply if
3    the state in which the motor vehicle will be titled does
4    not allow a reciprocal exemption for a motor vehicle sold
5    and delivered in that state to an Illinois resident but
6    titled in Illinois. The tax collected under this Act on
7    the sale of a motor vehicle in this State to a resident of
8    another state that does not allow a reciprocal exemption
9    shall be imposed at a rate equal to the state's rate of tax
10    on taxable property in the state in which the purchaser is
11    a resident, except that the tax shall not exceed the tax
12    that would otherwise be imposed under this Act. At the
13    time of the sale, the purchaser shall execute a statement,
14    signed under penalty of perjury, of his or her intent to
15    title the vehicle in the state in which the purchaser is a
16    resident within 30 days after the sale and of the fact of
17    the payment to the State of Illinois of tax in an amount
18    equivalent to the state's rate of tax on taxable property
19    in his or her state of residence and shall submit the
20    statement to the appropriate tax collection agency in his
21    or her state of residence. In addition, the retailer must
22    retain a signed copy of the statement in his or her
23    records. Nothing in this item shall be construed to
24    require the removal of the vehicle from this state
25    following the filing of an intent to title the vehicle in
26    the purchaser's state of residence if the purchaser titles

 

 

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1    the vehicle in his or her state of residence within 30 days
2    after the date of sale. The tax collected under this Act in
3    accordance with this item (25-5) shall be proportionately
4    distributed as if the tax were collected at the 6.25%
5    general rate imposed under this Act.
6        (25-7) Beginning on July 1, 2007, no tax is imposed
7    under this Act on the sale of an aircraft, as defined in
8    Section 3 of the Illinois Aeronautics Act, if all of the
9    following conditions are met:
10            (1) the aircraft leaves this State within 15 days
11        after the later of either the issuance of the final
12        billing for the sale of the aircraft, or the
13        authorized approval for return to service, completion
14        of the maintenance record entry, and completion of the
15        test flight and ground test for inspection, as
16        required by 14 CFR C.F.R. 91.407;
17            (2) the aircraft is not based or registered in
18        this State after the sale of the aircraft; and
19            (3) the seller retains in his or her books and
20        records and provides to the Department a signed and
21        dated certification from the purchaser, on a form
22        prescribed by the Department, certifying that the
23        requirements of this item (25-7) are met. The
24        certificate must also include the name and address of
25        the purchaser, the address of the location where the
26        aircraft is to be titled or registered, the address of

 

 

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

 

 

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1    all periods beginning May 30, 1995, but no claim for
2    credit or refund is allowed on or after January 1, 2008
3    (the effective date of Public Act 95-88) for such taxes
4    paid during the period beginning May 30, 2000 and ending
5    on January 1, 2008 (the effective date of Public Act
6    95-88).
7        (28) Computers and communications equipment utilized
8    for any hospital purpose and equipment used in the
9    diagnosis, analysis, or treatment of hospital patients
10    sold to a lessor who leases the equipment, under a lease of
11    one year or longer executed or in effect at the time of the
12    purchase, to a hospital that has been issued an active tax
13    exemption identification number by the Department under
14    Section 1g of this Act.
15        (29) Personal property sold to a lessor who leases the
16    property, under a lease of one year or longer executed or
17    in effect at the time of the purchase, to a governmental
18    body that has been issued an active tax exemption
19    identification number by the Department under Section 1g
20    of this Act.
21        (30) Beginning with taxable years ending on or after
22    December 31, 1995 and ending with taxable years ending on
23    or before December 31, 2004, personal property that is
24    donated for disaster relief to be used in a State or
25    federally declared disaster area in Illinois or bordering
26    Illinois by a manufacturer or retailer that is registered

 

 

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1    in this State to a corporation, society, association,
2    foundation, or institution that has been issued a sales
3    tax exemption identification number by the Department that
4    assists victims of the disaster who reside within the
5    declared disaster area.
6        (31) Beginning with taxable years ending on or after
7    December 31, 1995 and ending with taxable years ending on
8    or before December 31, 2004, personal property that is
9    used in the performance of infrastructure repairs in this
10    State, including but not limited to municipal roads and
11    streets, access roads, bridges, sidewalks, waste disposal
12    systems, water and sewer line extensions, water
13    distribution and purification facilities, storm water
14    drainage and retention facilities, and sewage treatment
15    facilities, resulting from a State or federally declared
16    disaster in Illinois or bordering Illinois when such
17    repairs are initiated on facilities located in the
18    declared disaster area within 6 months after the disaster.
19        (32) Beginning July 1, 1999, game or game birds sold
20    at a "game breeding and hunting preserve area" as that
21    term is used in the Wildlife Code. This paragraph is
22    exempt from the provisions of Section 2-70.
23        (33) A motor vehicle, as that term is defined in
24    Section 1-146 of the Illinois Vehicle Code, that is
25    donated to a corporation, limited liability company,
26    society, association, foundation, or institution that is

 

 

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1    determined by the Department to be organized and operated
2    exclusively for educational purposes. For purposes of this
3    exemption, "a corporation, limited liability company,
4    society, association, foundation, or institution organized
5    and operated exclusively for educational purposes" means
6    all tax-supported public schools, private schools that
7    offer systematic instruction in useful branches of
8    learning by methods common to public schools and that
9    compare favorably in their scope and intensity with the
10    course of study presented in tax-supported schools, and
11    vocational or technical schools or institutes organized
12    and operated exclusively to provide a course of study of
13    not less than 6 weeks duration and designed to prepare
14    individuals to follow a trade or to pursue a manual,
15    technical, mechanical, industrial, business, or commercial
16    occupation.
17        (34) Beginning January 1, 2000, personal property,
18    including food, purchased through fundraising events for
19    the benefit of a public or private elementary or secondary
20    school, a group of those schools, or one or more school
21    districts if the events are sponsored by an entity
22    recognized by the school district that consists primarily
23    of volunteers and includes parents and teachers of the
24    school children. This paragraph does not apply to
25    fundraising events (i) for the benefit of private home
26    instruction or (ii) for which the fundraising entity

 

 

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1    purchases the personal property sold at the events from
2    another individual or entity that sold the property for
3    the purpose of resale by the fundraising entity and that
4    profits from the sale to the fundraising entity. This
5    paragraph is exempt from the provisions of Section 2-70.
6        (35) Beginning January 1, 2000 and through December
7    31, 2001, new or used automatic vending machines that
8    prepare and serve hot food and beverages, including
9    coffee, soup, and other items, and replacement parts for
10    these machines. Beginning January 1, 2002 and through June
11    30, 2003, machines and parts for machines used in
12    commercial, coin-operated amusement and vending business
13    if a use or occupation tax is paid on the gross receipts
14    derived from the use of the commercial, coin-operated
15    amusement and vending machines. This paragraph is exempt
16    from the provisions of Section 2-70.
17        (35-5) Beginning August 23, 2001 and through June 30,
18    2016, food for human consumption that is to be consumed
19    off the premises where it is sold (other than alcoholic
20    beverages, soft drinks, and food that has been prepared
21    for immediate consumption) and prescription and
22    nonprescription medicines, drugs, medical appliances, and
23    insulin, urine testing materials, syringes, and needles
24    used by diabetics, for human use, when purchased for use
25    by a person receiving medical assistance under Article V
26    of the Illinois Public Aid Code who resides in a licensed

 

 

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1    long-term care facility, as defined in the Nursing Home
2    Care Act, or a licensed facility as defined in the ID/DD
3    Community Care Act, the MC/DD Act, or the Specialized
4    Mental Health Rehabilitation Act of 2013.
5        (36) Beginning August 2, 2001, computers and
6    communications equipment utilized for any hospital purpose
7    and equipment used in the diagnosis, analysis, or
8    treatment of hospital patients sold to a lessor who leases
9    the equipment, under a lease of one year or longer
10    executed or in effect at the time of the purchase, to a
11    hospital that has been issued an active tax exemption
12    identification number by the Department under Section 1g
13    of this Act. This paragraph is exempt from the provisions
14    of Section 2-70.
15        (37) Beginning August 2, 2001, personal property sold
16    to a lessor who leases the property, under a lease of one
17    year or longer executed or in effect at the time of the
18    purchase, to a governmental body that has been issued an
19    active tax exemption identification number by the
20    Department under Section 1g of this Act. This paragraph is
21    exempt from the provisions of Section 2-70.
22        (38) Beginning on January 1, 2002 and through June 30,
23    2016, tangible personal property purchased from an
24    Illinois retailer by a taxpayer engaged in centralized
25    purchasing activities in Illinois who will, upon receipt
26    of the property in Illinois, temporarily store the

 

 

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1    property in Illinois (i) for the purpose of subsequently
2    transporting it outside this State for use or consumption
3    thereafter solely outside this State or (ii) for the
4    purpose of being processed, fabricated, or manufactured
5    into, attached to, or incorporated into other tangible
6    personal property to be transported outside this State and
7    thereafter used or consumed solely outside this State. The
8    Director of Revenue shall, pursuant to rules adopted in
9    accordance with the Illinois Administrative Procedure Act,
10    issue a permit to any taxpayer in good standing with the
11    Department who is eligible for the exemption under this
12    paragraph (38). The permit issued under this paragraph
13    (38) shall authorize the holder, to the extent and in the
14    manner specified in the rules adopted under this Act, to
15    purchase tangible personal property from a retailer exempt
16    from the taxes imposed by this Act. Taxpayers shall
17    maintain all necessary books and records to substantiate
18    the use and consumption of all such tangible personal
19    property outside of the State of Illinois.
20        (39) Beginning January 1, 2008, tangible personal
21    property used in the construction or maintenance of a
22    community water supply, as defined under Section 3.145 of
23    the Environmental Protection Act, that is operated by a
24    not-for-profit corporation that holds a valid water supply
25    permit issued under Title IV of the Environmental
26    Protection Act. This paragraph is exempt from the

 

 

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1    provisions of Section 2-70.
2        (40) Beginning January 1, 2010 and continuing through
3    December 31, 2024, materials, parts, equipment,
4    components, and furnishings incorporated into or upon an
5    aircraft as part of the modification, refurbishment,
6    completion, replacement, repair, or maintenance of the
7    aircraft. This exemption includes consumable supplies used
8    in the modification, refurbishment, completion,
9    replacement, repair, and maintenance of aircraft, but
10    excludes any materials, parts, equipment, components, and
11    consumable supplies used in the modification, replacement,
12    repair, and maintenance of aircraft engines or power
13    plants, whether such engines or power plants are installed
14    or uninstalled upon any such aircraft. "Consumable
15    supplies" include, but are not limited to, adhesive, tape,
16    sandpaper, general purpose lubricants, cleaning solution,
17    latex gloves, and protective films. This exemption applies
18    only to the sale of qualifying tangible personal property
19    to persons who modify, refurbish, complete, replace, or
20    maintain an aircraft and who (i) hold an Air Agency
21    Certificate and are empowered to operate an approved
22    repair station by the Federal Aviation Administration,
23    (ii) have a Class IV Rating, and (iii) conduct operations
24    in accordance with Part 145 of the Federal Aviation
25    Regulations. The exemption does not include aircraft
26    operated by a commercial air carrier providing scheduled

 

 

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1    passenger air service pursuant to authority issued under
2    Part 121 or Part 129 of the Federal Aviation Regulations.
3    The changes made to this paragraph (40) by Public Act
4    98-534 are declarative of existing law. It is the intent
5    of the General Assembly that the exemption under this
6    paragraph (40) applies continuously from January 1, 2010
7    through December 31, 2024; however, no claim for credit or
8    refund is allowed for taxes paid as a result of the
9    disallowance of this exemption on or after January 1, 2015
10    and prior to February 5, 2020 (the effective date of
11    Public Act 101-629) this amendatory Act of the 101st
12    General Assembly.
13        (41) Tangible personal property sold to a
14    public-facilities corporation, as described in Section
15    11-65-10 of the Illinois Municipal Code, for purposes of
16    constructing or furnishing a municipal convention hall,
17    but only if the legal title to the municipal convention
18    hall is transferred to the municipality without any
19    further consideration by or on behalf of the municipality
20    at the time of the completion of the municipal convention
21    hall or upon the retirement or redemption of any bonds or
22    other debt instruments issued by the public-facilities
23    corporation in connection with the development of the
24    municipal convention hall. This exemption includes
25    existing public-facilities corporations as provided in
26    Section 11-65-25 of the Illinois Municipal Code. This

 

 

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1    paragraph is exempt from the provisions of Section 2-70.
2        (42) Beginning January 1, 2017 and through December
3    31, 2026, menstrual pads, tampons, and menstrual cups.
4        (43) Merchandise that is subject to the Rental
5    Purchase Agreement Occupation and Use Tax. The purchaser
6    must certify that the item is purchased to be rented
7    subject to a rental purchase agreement, as defined in the
8    Rental Purchase Agreement Act, and provide proof of
9    registration under the Rental Purchase Agreement
10    Occupation and Use Tax Act. This paragraph is exempt from
11    the provisions of Section 2-70.
12        (44) Qualified tangible personal property used in the
13    construction or operation of a data center that has been
14    granted a certificate of exemption by the Department of
15    Commerce and Economic Opportunity, whether that tangible
16    personal property is purchased by the owner, operator, or
17    tenant of the data center or by a contractor or
18    subcontractor of the owner, operator, or tenant. Data
19    centers that would have qualified for a certificate of
20    exemption prior to January 1, 2020 had Public Act 101-31
21    this amendatory Act of the 101st General Assembly been in
22    effect, may apply for and obtain an exemption for
23    subsequent purchases of computer equipment or enabling
24    software purchased or leased to upgrade, supplement, or
25    replace computer equipment or enabling software purchased
26    or leased in the original investment that would have

 

 

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1    qualified.
2        The Department of Commerce and Economic Opportunity
3    shall grant a certificate of exemption under this item
4    (44) to qualified data centers as defined by Section
5    605-1025 of the Department of Commerce and Economic
6    Opportunity Law of the Civil Administrative Code of
7    Illinois.
8        For the purposes of this item (44):
9            "Data center" means a building or a series of
10        buildings rehabilitated or constructed to house
11        working servers in one physical location or multiple
12        sites within the State of Illinois.
13            "Qualified tangible personal property" means:
14        electrical systems and equipment; climate control and
15        chilling equipment and systems; mechanical systems and
16        equipment; monitoring and secure systems; emergency
17        generators; hardware; computers; servers; data storage
18        devices; network connectivity equipment; racks;
19        cabinets; telecommunications cabling infrastructure;
20        raised floor systems; peripheral components or
21        systems; software; mechanical, electrical, or plumbing
22        systems; battery systems; cooling systems and towers;
23        temperature control systems; other cabling; and other
24        data center infrastructure equipment and systems
25        necessary to operate qualified tangible personal
26        property, including fixtures; and component parts of

 

 

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1        any of the foregoing, including installation,
2        maintenance, repair, refurbishment, and replacement of
3        qualified tangible personal property to generate,
4        transform, transmit, distribute, or manage electricity
5        necessary to operate qualified tangible personal
6        property; and all other tangible personal property
7        that is essential to the operations of a computer data
8        center. The term "qualified tangible personal
9        property" also includes building materials physically
10        incorporated into the qualifying data center. To
11        document the exemption allowed under this Section, the
12        retailer must obtain from the purchaser a copy of the
13        certificate of eligibility issued by the Department of
14        Commerce and Economic Opportunity.
15        This item (44) is exempt from the provisions of
16    Section 2-70.
17        (45) Beginning January 1, 2020 and through December
18    31, 2020, sales of tangible personal property made by a
19    marketplace seller over a marketplace for which tax is due
20    under this Act but for which use tax has been collected and
21    remitted to the Department by a marketplace facilitator
22    under Section 2d of the Use Tax Act are exempt from tax
23    under this Act. A marketplace seller claiming this
24    exemption shall maintain books and records demonstrating
25    that the use tax on such sales has been collected and
26    remitted by a marketplace facilitator. Marketplace sellers

 

 

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1    that have properly remitted tax under this Act on such
2    sales may file a claim for credit as provided in Section 6
3    of this Act. No claim is allowed, however, for such taxes
4    for which a credit or refund has been issued to the
5    marketplace facilitator under the Use Tax Act, or for
6    which the marketplace facilitator has filed a claim for
7    credit or refund under the Use Tax Act.
8        (46) Beginning July 1, 2022, breast pumps, breast pump
9    collection and storage supplies, and breast pump kits.
10    This item (46) is exempt from the provisions of Section
11    2-70. As used in this item (46):
12        "Breast pump" means an electrically controlled or
13    manually controlled pump device designed or marketed to be
14    used to express milk from a human breast during lactation,
15    including the pump device and any battery, AC adapter, or
16    other power supply unit that is used to power the pump
17    device and is packaged and sold with the pump device at the
18    time of sale.
19        "Breast pump collection and storage supplies" means
20    items of tangible personal property designed or marketed
21    to be used in conjunction with a breast pump to collect
22    milk expressed from a human breast and to store collected
23    milk until it is ready for consumption.
24        "Breast pump collection and storage supplies"
25    includes, but is not limited to: breast shields and breast
26    shield connectors; breast pump tubes and tubing adapters;

 

 

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1    breast pump valves and membranes; backflow protectors and
2    backflow protector adaptors; bottles and bottle caps
3    specific to the operation of the breast pump; and breast
4    milk storage bags.
5        "Breast pump collection and storage supplies" does not
6    include: (1) bottles and bottle caps not specific to the
7    operation of the breast pump; (2) breast pump travel bags
8    and other similar carrying accessories, including ice
9    packs, labels, and other similar products; (3) breast pump
10    cleaning supplies; (4) nursing bras, bra pads, breast
11    shells, and other similar products; and (5) creams,
12    ointments, and other similar products that relieve
13    breastfeeding-related symptoms or conditions of the
14    breasts or nipples, unless sold as part of a breast pump
15    kit that is pre-packaged by the breast pump manufacturer
16    or distributor.
17        "Breast pump kit" means a kit that: (1) contains no
18    more than a breast pump, breast pump collection and
19    storage supplies, a rechargeable battery for operating the
20    breast pump, a breastmilk cooler, bottle stands, ice
21    packs, and a breast pump carrying case; and (2) is
22    pre-packaged as a breast pump kit by the breast pump
23    manufacturer or distributor.
24        (47) (46) Tangible personal property sold by or on
25    behalf of the State Treasurer pursuant to the Revised
26    Uniform Unclaimed Property Act. This item (47) (46) is

 

 

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1    exempt from the provisions of Section 2-70.
2        (48) On and after January 1, 2024, essential supplies
3    purchased by a day care center that has been granted a
4    certificate of exemption by the Department. The Department
5    of Children and Family Services may share information with
6    the Department of Revenue for the purpose of administering
7    the provisions of this exemption. This item (48) is exempt
8    from the provisions of Section 2-70.
9        As used in this item (48
    ):
10        "Day care center" has the meaning given to that term
11    in Section 2.09 of the Child Care Act of 1969.
12        "Essential supplies" means items designated, by rule,
13    as essential supplies by the Department of Children and
14    Family Services, including, but not limited to: food and
15    beverages to be consumed by a child as a snack or meal at
16    the day care center, including, but not limited to, fruits
17    and vegetables, whole grains, proteins, water, and reduced
18    fat or skim milk; diapers; wipes; first aid kits; smoke
19    detectors; nap mats; and soap and hand sanitizer.
20(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
21101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
228-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
23102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
24eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.