Rep. Monica Bristow
Adopted in House Comm. on Oct 29, 2019
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1 | AMENDMENT TO HOUSE BILL 3902
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2 | AMENDMENT NO. ______. Amend House Bill 3902 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Use Tax Act is amended by changing Section | ||||||
5 | 3-5 as follows:
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6 | (35 ILCS 105/3-5)
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7 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
8 | personal property is exempt from the tax imposed by this Act:
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9 | (1) Personal property purchased from a corporation, | ||||||
10 | society, association,
foundation, institution, or | ||||||
11 | organization, other than a limited liability
company, that is | ||||||
12 | organized and operated as a not-for-profit service enterprise
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13 | for the benefit of persons 65 years of age or older if the | ||||||
14 | personal property was not purchased by the enterprise for the | ||||||
15 | purpose of resale by the
enterprise.
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16 | (2) Personal property purchased by a not-for-profit |
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1 | Illinois county
fair association for use in conducting, | ||||||
2 | operating, or promoting the
county fair.
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3 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
4 | cultural organization that establishes, by proof required by | ||||||
5 | the
Department by
rule, that it has received an exemption under | ||||||
6 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
7 | organized and operated primarily for the
presentation
or | ||||||
8 | support of arts or cultural programming, activities, or | ||||||
9 | services. These
organizations include, but are not limited to, | ||||||
10 | music and dramatic arts
organizations such as symphony | ||||||
11 | orchestras and theatrical groups, arts and
cultural service | ||||||
12 | organizations, local arts councils, visual arts organizations,
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13 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
14 | effective date of Public Act 92-35), however, an entity | ||||||
15 | otherwise eligible for this exemption shall not
make tax-free | ||||||
16 | purchases unless it has an active identification number issued | ||||||
17 | by
the Department.
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18 | (4) Personal property purchased by a governmental body, by | ||||||
19 | a
corporation, society, association, foundation, or | ||||||
20 | institution organized and
operated exclusively for charitable, | ||||||
21 | religious, or educational purposes, or
by a not-for-profit | ||||||
22 | corporation, society, association, foundation,
institution, or | ||||||
23 | organization that has no compensated officers or employees
and | ||||||
24 | that is organized and operated primarily for the recreation of | ||||||
25 | persons
55 years of age or older. A limited liability company | ||||||
26 | may qualify for the
exemption under this paragraph only if the |
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1 | limited liability company is
organized and operated | ||||||
2 | exclusively for educational purposes. On and after July
1, | ||||||
3 | 1987, however, no entity otherwise eligible for this exemption | ||||||
4 | shall make
tax-free purchases unless it has an active exemption | ||||||
5 | identification number
issued by the Department.
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6 | (5) Until July 1, 2003, a passenger car that is a | ||||||
7 | replacement vehicle to
the extent that the
purchase price of | ||||||
8 | the car is subject to the Replacement Vehicle Tax.
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9 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
10 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
11 | equipment, including
repair and replacement
parts, both new and | ||||||
12 | used, and including that manufactured on special order,
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13 | certified by the purchaser to be used primarily for graphic | ||||||
14 | arts production,
and including machinery and equipment | ||||||
15 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
16 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
17 | acting as catalysts effect a direct and immediate change
upon a | ||||||
18 | graphic arts product. Beginning on July 1, 2017, graphic arts | ||||||
19 | machinery and equipment is included in the manufacturing and | ||||||
20 | assembling machinery and equipment exemption under paragraph | ||||||
21 | (18).
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22 | (7) Farm chemicals.
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23 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
24 | coinage issued by
the State of Illinois, the government of the | ||||||
25 | United States of America, or the
government of any foreign | ||||||
26 | country, and bullion.
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1 | (9) Personal property purchased from a teacher-sponsored | ||||||
2 | student
organization affiliated with an elementary or | ||||||
3 | secondary school located in
Illinois.
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4 | (10) A motor vehicle that is used for automobile renting, | ||||||
5 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
6 | Act.
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7 | (11) Farm machinery and equipment, both new and used,
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8 | including that manufactured on special order, certified by the | ||||||
9 | purchaser
to be used primarily for production agriculture or | ||||||
10 | State or federal
agricultural programs, including individual | ||||||
11 | replacement parts for
the machinery and equipment, including | ||||||
12 | machinery and equipment
purchased
for lease,
and including | ||||||
13 | implements of husbandry defined in Section 1-130 of
the | ||||||
14 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
15 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
16 | be registered
under Section 3-809 of the Illinois Vehicle Code,
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17 | but excluding other motor
vehicles required to be
registered | ||||||
18 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
19 | hoop houses used for propagating, growing, or
overwintering | ||||||
20 | plants shall be considered farm machinery and equipment under
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21 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
22 | boxes shall include units sold
separately from a motor vehicle | ||||||
23 | required to be licensed and units sold mounted
on a motor | ||||||
24 | vehicle required to be licensed if the selling price of the | ||||||
25 | tender
is separately stated.
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26 | Farm machinery and equipment shall include precision |
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1 | farming equipment
that is
installed or purchased to be | ||||||
2 | installed on farm machinery and equipment
including, but not | ||||||
3 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
4 | or spreaders.
Precision farming equipment includes, but is not | ||||||
5 | limited to, soil testing
sensors, computers, monitors, | ||||||
6 | software, global positioning
and mapping systems, and other | ||||||
7 | such equipment.
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8 | Farm machinery and equipment also includes computers, | ||||||
9 | sensors, software, and
related equipment used primarily in the
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10 | computer-assisted operation of production agriculture | ||||||
11 | facilities, equipment,
and
activities such as, but not limited | ||||||
12 | to,
the collection, monitoring, and correlation of
animal and | ||||||
13 | crop data for the purpose of
formulating animal diets and | ||||||
14 | agricultural chemicals. This item (11) is exempt
from the | ||||||
15 | provisions of
Section 3-90.
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16 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
17 | to or used by an air common
carrier, certified by the carrier | ||||||
18 | to be used for consumption, shipment, or
storage in the conduct | ||||||
19 | of its business as an air common carrier, for a
flight destined | ||||||
20 | for or returning from a location or locations
outside the | ||||||
21 | United States without regard to previous or subsequent domestic
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22 | stopovers.
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23 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
24 | or used by an air carrier, certified by the carrier to be used | ||||||
25 | for consumption, shipment, or storage in the conduct of its | ||||||
26 | business as an air common carrier, for a flight that (i) is |
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1 | engaged in foreign trade or is engaged in trade between the | ||||||
2 | United States and any of its possessions and (ii) transports at | ||||||
3 | least one individual or package for hire from the city of | ||||||
4 | origination to the city of final destination on the same | ||||||
5 | aircraft, without regard to a change in the flight number of | ||||||
6 | that aircraft. | ||||||
7 | (13) Proceeds of mandatory service charges separately
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8 | stated on customers' bills for the purchase and consumption of | ||||||
9 | food and
beverages purchased at retail from a retailer, to the | ||||||
10 | extent that the proceeds
of the service charge are in fact | ||||||
11 | turned over as tips or as a substitute
for tips to the | ||||||
12 | employees who participate directly in preparing, serving,
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13 | hosting or cleaning up the food or beverage function with | ||||||
14 | respect to which
the service charge is imposed.
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15 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
16 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
17 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
18 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
19 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
20 | individual replacement part for oil
field exploration, | ||||||
21 | drilling, and production equipment, and (vi) machinery and
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22 | equipment purchased
for lease; but excluding motor vehicles | ||||||
23 | required to be registered under the
Illinois Vehicle Code.
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24 | (15) Photoprocessing machinery and equipment, including | ||||||
25 | repair and
replacement parts, both new and used, including that
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26 | manufactured on special order, certified by the purchaser to be |
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1 | used
primarily for photoprocessing, and including
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2 | photoprocessing machinery and equipment purchased for lease.
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3 | (16) Until July 1, 2023, coal and aggregate exploration, | ||||||
4 | mining, off-highway hauling,
processing, maintenance, and | ||||||
5 | reclamation equipment,
including replacement parts and | ||||||
6 | equipment, and
including equipment purchased for lease, but | ||||||
7 | excluding motor
vehicles required to be registered under the | ||||||
8 | Illinois Vehicle Code. The changes made to this Section by | ||||||
9 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
10 | for credit or refund is allowed on or after August 16, 2013 | ||||||
11 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
12 | during the period beginning July 1, 2003 and ending on August | ||||||
13 | 16, 2013 (the effective date of Public Act 98-456).
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14 | (17) Until July 1, 2003, distillation machinery and | ||||||
15 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
16 | retailer, certified by the user to be used
only for the | ||||||
17 | production of ethyl alcohol that will be used for consumption
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18 | as motor fuel or as a component of motor fuel for the personal | ||||||
19 | use of the
user, and not subject to sale or resale.
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20 | (18) Manufacturing and assembling machinery and equipment | ||||||
21 | used
primarily in the process of manufacturing or assembling | ||||||
22 | tangible
personal property for wholesale or retail sale or | ||||||
23 | lease, whether that sale
or lease is made directly by the | ||||||
24 | manufacturer or by some other person,
whether the materials | ||||||
25 | used in the process are
owned by the manufacturer or some other | ||||||
26 | person, or whether that sale or
lease is made apart from or as |
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1 | an incident to the seller's engaging in
the service occupation | ||||||
2 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
3 | other similar items of no commercial value on
special order for | ||||||
4 | a particular purchaser. The exemption provided by this | ||||||
5 | paragraph (18) includes production related tangible personal | ||||||
6 | property, as defined in Section 3-50, purchased on or after | ||||||
7 | July 1, 2019. The exemption provided by this paragraph (18) | ||||||
8 | does not include machinery and equipment used in (i) the | ||||||
9 | generation of electricity for wholesale or retail sale; (ii) | ||||||
10 | the generation or treatment of natural or artificial gas for | ||||||
11 | wholesale or retail sale that is delivered to customers through | ||||||
12 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
13 | wholesale or retail sale that is delivered to customers through | ||||||
14 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
15 | are declaratory of existing law as to the meaning and scope of | ||||||
16 | this exemption. Beginning on July 1, 2017, the exemption | ||||||
17 | provided by this paragraph (18) includes, but is not limited | ||||||
18 | to, graphic arts machinery and equipment, as defined in | ||||||
19 | paragraph (6) of this Section.
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20 | (19) Personal property delivered to a purchaser or | ||||||
21 | purchaser's donee
inside Illinois when the purchase order for | ||||||
22 | that personal property was
received by a florist located | ||||||
23 | outside Illinois who has a florist located
inside Illinois | ||||||
24 | deliver the personal property.
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25 | (20) Semen used for artificial insemination of livestock | ||||||
26 | for direct
agricultural production.
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1 | (21) Horses, or interests in horses, registered with and | ||||||
2 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
3 | Registry of America, Appaloosa Horse Club, American Quarter
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4 | Horse Association, United States
Trotting Association, or | ||||||
5 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
6 | racing for prizes. This item (21) is exempt from the provisions | ||||||
7 | of Section 3-90, and the exemption provided for under this item | ||||||
8 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
9 | claim for credit or refund is allowed on or after January 1, | ||||||
10 | 2008
for such taxes paid during the period beginning May 30, | ||||||
11 | 2000 and ending on January 1, 2008.
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12 | (22) Computers and communications equipment utilized for | ||||||
13 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
14 | analysis, or treatment of hospital patients purchased by a | ||||||
15 | lessor who leases
the
equipment, under a lease of one year or | ||||||
16 | longer executed or in effect at the
time the lessor would | ||||||
17 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
18 | hospital
that has been issued an active tax exemption | ||||||
19 | identification number by
the
Department under Section 1g of the | ||||||
20 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
21 | manner that does not qualify for
this exemption or is used in | ||||||
22 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
23 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
24 | case may
be, based on the fair market value of the property at | ||||||
25 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
26 | or attempt to collect an
amount (however
designated) that |
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1 | purports to reimburse that lessor for the tax imposed by this
| ||||||
2 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
3 | has not been
paid by the lessor. If a lessor improperly | ||||||
4 | collects any such amount from the
lessee, the lessee shall have | ||||||
5 | a legal right to claim a refund of that amount
from the lessor. | ||||||
6 | If, however, that amount is not refunded to the lessee for
any | ||||||
7 | reason, the lessor is liable to pay that amount to the | ||||||
8 | Department.
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9 | (23) Personal property purchased by a lessor who leases the
| ||||||
10 | property, under
a
lease of
one year or longer executed or in | ||||||
11 | effect at the time
the lessor would otherwise be subject to the | ||||||
12 | tax imposed by this Act,
to a governmental body
that has been | ||||||
13 | issued an active sales tax exemption identification number by | ||||||
14 | the
Department under Section 1g of the Retailers' Occupation | ||||||
15 | Tax Act.
If the
property is leased in a manner that does not | ||||||
16 | qualify for
this exemption
or used in any other non-exempt | ||||||
17 | manner, the lessor shall be liable for the
tax imposed under | ||||||
18 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
19 | on the fair market value of the property at the time the
| ||||||
20 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
21 | to collect an
amount (however
designated) that purports to | ||||||
22 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
23 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
24 | paid by the lessor. If a lessor improperly collects any such | ||||||
25 | amount from the
lessee, the lessee shall have a legal right to | ||||||
26 | claim a refund of that amount
from the lessor. If, however, |
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1 | that amount is not refunded to the lessee for
any reason, the | ||||||
2 | lessor is liable to pay that amount to the Department.
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3 | (24) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995
and
ending with taxable years ending on or | ||||||
5 | before December 31, 2004,
personal property that is
donated for | ||||||
6 | disaster relief to be used in a State or federally declared
| ||||||
7 | disaster area in Illinois or bordering Illinois by a | ||||||
8 | manufacturer or retailer
that is registered in this State to a | ||||||
9 | corporation, society, association,
foundation, or institution | ||||||
10 | that has been issued a sales tax exemption
identification | ||||||
11 | number by the Department that assists victims of the disaster
| ||||||
12 | who reside within the declared disaster area.
| ||||||
13 | (25) Beginning with taxable years ending on or after | ||||||
14 | December
31, 1995 and
ending with taxable years ending on or | ||||||
15 | before December 31, 2004, personal
property that is used in the | ||||||
16 | performance of infrastructure repairs in this
State, including | ||||||
17 | but not limited to municipal roads and streets, access roads,
| ||||||
18 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
19 | line extensions,
water distribution and purification | ||||||
20 | facilities, storm water drainage and
retention facilities, and | ||||||
21 | sewage treatment facilities, resulting from a State
or | ||||||
22 | federally declared disaster in Illinois or bordering Illinois | ||||||
23 | when such
repairs are initiated on facilities located in the | ||||||
24 | declared disaster area
within 6 months after the disaster.
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25 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
26 | at a "game
breeding
and hunting preserve area" as that term is
|
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| |||||||
1 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
2 | provisions
of
Section 3-90.
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3 | (27) A motor vehicle, as that term is defined in Section | ||||||
4 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
5 | corporation, limited liability company,
society, association, | ||||||
6 | foundation, or institution that is determined by the
Department | ||||||
7 | to be organized and operated exclusively for educational | ||||||
8 | purposes.
For purposes of this exemption, "a corporation, | ||||||
9 | limited liability company,
society, association, foundation, | ||||||
10 | or institution organized and operated
exclusively for | ||||||
11 | educational purposes" means all tax-supported public schools,
| ||||||
12 | private schools that offer systematic instruction in useful | ||||||
13 | branches of
learning by methods common to public schools and | ||||||
14 | that compare favorably in
their scope and intensity with the | ||||||
15 | course of study presented in tax-supported
schools, and | ||||||
16 | vocational or technical schools or institutes organized and
| ||||||
17 | operated exclusively to provide a course of study of not less | ||||||
18 | than 6 weeks
duration and designed to prepare individuals to | ||||||
19 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
20 | industrial, business, or commercial
occupation.
| ||||||
21 | (28) Beginning January 1, 2000, personal property, | ||||||
22 | including
food,
purchased through fundraising
events for the | ||||||
23 | benefit of
a public or private elementary or
secondary school, | ||||||
24 | a group of those schools, or one or more school
districts if | ||||||
25 | the events are
sponsored by an entity recognized by the school | ||||||
26 | district that consists
primarily of volunteers and includes
|
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| |||||||
1 | parents and teachers of the school children. This paragraph | ||||||
2 | does not apply
to fundraising
events (i) for the benefit of | ||||||
3 | private home instruction or (ii)
for which the fundraising | ||||||
4 | entity purchases the personal property sold at
the events from | ||||||
5 | another individual or entity that sold the property for the
| ||||||
6 | purpose of resale by the fundraising entity and that
profits | ||||||
7 | from the sale to the
fundraising entity. This paragraph is | ||||||
8 | exempt
from the provisions
of Section 3-90.
| ||||||
9 | (29) Beginning January 1, 2000 and through December 31, | ||||||
10 | 2001, new or
used automatic vending
machines that prepare and | ||||||
11 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
12 | items, and replacement parts for these machines.
Beginning | ||||||
13 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
14 | for machines used in
commercial, coin-operated amusement and | ||||||
15 | vending business if a use or occupation
tax is paid on the | ||||||
16 | gross receipts derived from the use of the commercial,
| ||||||
17 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
18 | is exempt from the provisions of Section 3-90.
| ||||||
19 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
20 | food for human consumption that is to be consumed off the | ||||||
21 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
22 | drinks, and food that
has been prepared for immediate | ||||||
23 | consumption) and prescription and
nonprescription medicines, | ||||||
24 | drugs, medical appliances, and insulin, urine
testing | ||||||
25 | materials, syringes, and needles used by diabetics, for human | ||||||
26 | use, when
purchased for use by a person receiving medical |
| |||||||
| |||||||
1 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
2 | resides in a licensed long-term care facility,
as defined in | ||||||
3 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
4 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
5 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
6 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
7 | Public Act 92-227),
computers and communications equipment
| ||||||
8 | utilized for any hospital purpose and equipment used in the | ||||||
9 | diagnosis,
analysis, or treatment of hospital patients | ||||||
10 | purchased by a lessor who leases
the equipment, under a lease | ||||||
11 | of one year or longer executed or in effect at the
time the | ||||||
12 | lessor would otherwise be subject to the tax imposed by this | ||||||
13 | Act, to a
hospital that has been issued an active tax exemption | ||||||
14 | identification number by
the Department under Section 1g of the | ||||||
15 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
16 | manner that does not qualify for this exemption or is
used in | ||||||
17 | any other nonexempt manner, the lessor shall be liable for the | ||||||
18 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
19 | case may be, based on
the fair market value of the property at | ||||||
20 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
21 | or attempt to collect an amount (however
designated) that | ||||||
22 | purports to reimburse that lessor for the tax imposed by this
| ||||||
23 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
24 | has not been
paid by the lessor. If a lessor improperly | ||||||
25 | collects any such amount from the
lessee, the lessee shall have | ||||||
26 | a legal right to claim a refund of that amount
from the lessor. |
| |||||||
| |||||||
1 | If, however, that amount is not refunded to the lessee for
any | ||||||
2 | reason, the lessor is liable to pay that amount to the | ||||||
3 | Department.
This paragraph is exempt from the provisions of | ||||||
4 | Section 3-90.
| ||||||
5 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
6 | Public Act 92-227),
personal property purchased by a lessor who | ||||||
7 | leases the property,
under a lease of one year or longer | ||||||
8 | executed or in effect at the time the
lessor would otherwise be | ||||||
9 | subject to the tax imposed by this Act, to a
governmental body | ||||||
10 | that has been issued an active sales tax exemption
| ||||||
11 | identification number by the Department under Section 1g of the | ||||||
12 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
13 | manner that does not
qualify for this exemption or used in any | ||||||
14 | other nonexempt manner, the lessor
shall be liable for the tax | ||||||
15 | imposed under this Act or the Service Use Tax Act,
as the case | ||||||
16 | may be, based on the fair market value of the property at the | ||||||
17 | time
the nonqualifying use occurs. No lessor shall collect or | ||||||
18 | attempt to collect
an amount (however designated) that purports | ||||||
19 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
20 | Service Use Tax Act, as the case may be, if the
tax has not been | ||||||
21 | paid by the lessor. If a lessor improperly collects any such
| ||||||
22 | amount from the lessee, the lessee shall have a legal right to | ||||||
23 | claim a refund
of that amount from the lessor. If, however, | ||||||
24 | that amount is not refunded to
the lessee for any reason, the | ||||||
25 | lessor is liable to pay that amount to the
Department. This | ||||||
26 | paragraph is exempt from the provisions of Section 3-90.
|
| |||||||
| |||||||
1 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
2 | the use in this State of motor vehicles of
the second division | ||||||
3 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
4 | are subject to the commercial distribution fee imposed under | ||||||
5 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
6 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
7 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
8 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
9 | to the commercial distribution fee imposed under Section | ||||||
10 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
11 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
12 | this exemption applies to repair and
replacement parts added | ||||||
13 | after the initial purchase of such a motor vehicle if
that | ||||||
14 | motor
vehicle is used in a manner that would qualify for the | ||||||
15 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
16 | purposes of this paragraph, the term "used for commercial | ||||||
17 | purposes" means the transportation of persons or property in | ||||||
18 | furtherance of any commercial or industrial enterprise, | ||||||
19 | whether for-hire or not.
| ||||||
20 | (34) Beginning January 1, 2008, tangible personal property | ||||||
21 | used in the construction or maintenance of a community water | ||||||
22 | supply, as defined under Section 3.145 of the Environmental | ||||||
23 | Protection Act, that is operated by a not-for-profit | ||||||
24 | corporation that holds a valid water supply permit issued under | ||||||
25 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
26 | exempt from the provisions of Section 3-90. |
| |||||||
| |||||||
1 | (35) Beginning January 1, 2010 and continuing through | ||||||
2 | December 31, 2024 , materials, parts, equipment, components, | ||||||
3 | and furnishings incorporated into or upon an aircraft as part | ||||||
4 | of the modification, refurbishment, completion, replacement, | ||||||
5 | repair, or maintenance of the aircraft. This exemption includes | ||||||
6 | consumable supplies used in the modification, refurbishment, | ||||||
7 | completion, replacement, repair, and maintenance of aircraft, | ||||||
8 | but excludes any materials, parts, equipment, components, and | ||||||
9 | consumable supplies used in the modification, replacement, | ||||||
10 | repair, and maintenance of aircraft engines or power plants, | ||||||
11 | whether such engines or power plants are installed or | ||||||
12 | uninstalled upon any such aircraft. "Consumable supplies" | ||||||
13 | include, but are not limited to, adhesive, tape, sandpaper, | ||||||
14 | general purpose lubricants, cleaning solution, latex gloves, | ||||||
15 | and protective films. This exemption applies only to the use of | ||||||
16 | qualifying tangible personal property by persons who modify, | ||||||
17 | refurbish, complete, repair, replace, or maintain aircraft and | ||||||
18 | who (i) hold an Air Agency Certificate and are empowered to | ||||||
19 | operate an approved repair station by the Federal Aviation | ||||||
20 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
21 | operations in accordance with Part 145 of the Federal Aviation | ||||||
22 | Regulations. The exemption does not include aircraft operated | ||||||
23 | by a commercial air carrier providing scheduled passenger air | ||||||
24 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
25 | of the Federal Aviation Regulations. The changes made to this | ||||||
26 | paragraph (35) by Public Act 98-534 are declarative of existing |
| |||||||
| |||||||
1 | law. It is the intent of the General Assembly that the | ||||||
2 | exemption under this paragraph (35) applies continuously from | ||||||
3 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
4 | for credit or refund is allowed for taxes paid as a result of | ||||||
5 | the disallowance of this exemption on or after January 1, 2015 | ||||||
6 | and prior to the effective date of this amendatory Act of the | ||||||
7 | 101st General Assembly. | ||||||
8 | (36) Tangible personal property purchased by a | ||||||
9 | public-facilities corporation, as described in Section | ||||||
10 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
11 | constructing or furnishing a municipal convention hall, but | ||||||
12 | only if the legal title to the municipal convention hall is | ||||||
13 | transferred to the municipality without any further | ||||||
14 | consideration by or on behalf of the municipality at the time | ||||||
15 | of the completion of the municipal convention hall or upon the | ||||||
16 | retirement or redemption of any bonds or other debt instruments | ||||||
17 | issued by the public-facilities corporation in connection with | ||||||
18 | the development of the municipal convention hall. This | ||||||
19 | exemption includes existing public-facilities corporations as | ||||||
20 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
21 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
22 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
23 | and menstrual cups. | ||||||
24 | (38) Merchandise that is subject to the Rental Purchase | ||||||
25 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
26 | that the item is purchased to be rented subject to a rental |
| |||||||
| |||||||
1 | purchase agreement, as defined in the Rental Purchase Agreement | ||||||
2 | Act, and provide proof of registration under the Rental | ||||||
3 | Purchase Agreement Occupation and Use Tax Act. This paragraph | ||||||
4 | is exempt from the provisions of Section 3-90. | ||||||
5 | (39) Tangible personal property purchased by a purchaser | ||||||
6 | who is exempt from the tax imposed by this Act by operation of | ||||||
7 | federal law. This paragraph is exempt from the provisions of | ||||||
8 | Section 3-90. | ||||||
9 | (40) Qualified tangible personal property used in the | ||||||
10 | construction or operation of a data center that has been | ||||||
11 | granted a certificate of exemption by the Department of | ||||||
12 | Commerce and Economic Opportunity, whether that tangible | ||||||
13 | personal property is purchased by the owner, operator, or | ||||||
14 | tenant of the data center or by a contractor or subcontractor | ||||||
15 | of the owner, operator, or tenant. Data centers that would have | ||||||
16 | qualified for a certificate of exemption prior to January 1, | ||||||
17 | 2020 had Public Act 101-31 this amendatory Act of the 101st | ||||||
18 | General Assembly been in effect , may apply for and obtain an | ||||||
19 | exemption for subsequent purchases of computer equipment or | ||||||
20 | enabling software purchased or leased to upgrade, supplement, | ||||||
21 | or replace computer equipment or enabling software purchased or | ||||||
22 | leased in the original investment that would have qualified. | ||||||
23 | The Department of Commerce and Economic Opportunity shall | ||||||
24 | grant a certificate of exemption under this item (40) to | ||||||
25 | qualified data centers as defined by Section 605-1025 of the | ||||||
26 | Department of Commerce and Economic Opportunity Law of the
|
| |||||||
| |||||||
1 | Civil Administrative Code of Illinois. | ||||||
2 | For the purposes of this item (40): | ||||||
3 | "Data center" means a building or a series of buildings | ||||||
4 | rehabilitated or constructed to house working servers in | ||||||
5 | one physical location or multiple sites within the State of | ||||||
6 | 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 |
| |||||||
| |||||||
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 must | ||||||
5 | obtain from the purchaser a copy of the certificate of | ||||||
6 | eligibility issued by the Department of Commerce and | ||||||
7 | Economic Opportunity. | ||||||
8 | This item (40) is exempt from the provisions of Section | ||||||
9 | 3-90. | ||||||
10 | (Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; | ||||||
11 | 100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. | ||||||
12 | 1-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff. | ||||||
13 | 7-12-19; revised 9-23-19.)
| ||||||
14 | Section 10. The Service Use Tax Act is amended by changing | ||||||
15 | Section 3-5 as follows:
| ||||||
16 | (35 ILCS 110/3-5)
| ||||||
17 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
18 | personal property
is exempt from the tax imposed by this Act:
| ||||||
19 | (1) Personal property purchased from a corporation, | ||||||
20 | society,
association, foundation, institution, or | ||||||
21 | organization, other than a limited
liability company, that is | ||||||
22 | organized and operated as a not-for-profit service
enterprise | ||||||
23 | for the benefit of persons 65 years of age or older if the | ||||||
24 | personal
property was not purchased by the enterprise for the |
| |||||||
| |||||||
1 | purpose of resale by the
enterprise.
| ||||||
2 | (2) Personal property purchased by a non-profit Illinois | ||||||
3 | county fair
association for use in conducting, operating, or | ||||||
4 | promoting the county fair.
| ||||||
5 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
6 | cultural
organization that establishes, by proof required by | ||||||
7 | the Department by rule,
that it has received an exemption under | ||||||
8 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
9 | organized and operated primarily for the
presentation
or | ||||||
10 | support of arts or cultural programming, activities, or | ||||||
11 | services. These
organizations include, but are not limited to, | ||||||
12 | music and dramatic arts
organizations such as symphony | ||||||
13 | orchestras and theatrical groups, arts and
cultural service | ||||||
14 | organizations, local arts councils, visual arts organizations,
| ||||||
15 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
16 | effective date of Public Act 92-35), however, an entity | ||||||
17 | otherwise eligible for this exemption shall not
make tax-free | ||||||
18 | purchases unless it has an active identification number issued | ||||||
19 | by
the Department.
| ||||||
20 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
21 | coinage issued
by the State of Illinois, the government of the | ||||||
22 | United States of America,
or the government of any foreign | ||||||
23 | country, and bullion.
| ||||||
24 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
25 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
26 | equipment, including
repair and
replacement parts, both new and |
| |||||||
| |||||||
1 | used, and including that manufactured on
special order or | ||||||
2 | purchased for lease, certified by the purchaser to be used
| ||||||
3 | primarily for graphic arts production.
Equipment includes | ||||||
4 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
5 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
6 | immediate
change upon a graphic arts product. Beginning on July | ||||||
7 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
8 | the manufacturing and assembling machinery and equipment | ||||||
9 | exemption under Section 2 of this Act.
| ||||||
10 | (6) Personal property purchased from a teacher-sponsored | ||||||
11 | student
organization affiliated with an elementary or | ||||||
12 | secondary school located
in Illinois.
| ||||||
13 | (7) Farm machinery and equipment, both new and used, | ||||||
14 | including that
manufactured on special order, certified by the | ||||||
15 | purchaser to be used
primarily for production agriculture or | ||||||
16 | State or federal agricultural
programs, including individual | ||||||
17 | replacement parts for the machinery and
equipment, including | ||||||
18 | machinery and equipment purchased for lease,
and including | ||||||
19 | implements of husbandry defined in Section 1-130 of
the | ||||||
20 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
21 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
22 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
23 | but
excluding other motor vehicles required to be registered | ||||||
24 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
25 | hoop houses used for propagating, growing, or
overwintering | ||||||
26 | plants shall be considered farm machinery and equipment under
|
| |||||||
| |||||||
1 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
2 | shall include units sold
separately from a motor vehicle | ||||||
3 | required to be licensed and units sold mounted
on a motor | ||||||
4 | vehicle required to be licensed if the selling price of the | ||||||
5 | tender
is separately stated.
| ||||||
6 | Farm machinery and equipment shall include precision | ||||||
7 | farming equipment
that is
installed or purchased to be | ||||||
8 | installed on farm machinery and equipment
including, but not | ||||||
9 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
10 | or spreaders.
Precision farming equipment includes, but is not | ||||||
11 | limited to,
soil testing sensors, computers, monitors, | ||||||
12 | software, global positioning
and mapping systems, and other | ||||||
13 | such equipment.
| ||||||
14 | Farm machinery and equipment also includes computers, | ||||||
15 | sensors, software, and
related equipment used primarily in the
| ||||||
16 | computer-assisted operation of production agriculture | ||||||
17 | facilities, equipment,
and activities such as, but
not limited | ||||||
18 | to,
the collection, monitoring, and correlation of
animal and | ||||||
19 | crop data for the purpose of
formulating animal diets and | ||||||
20 | agricultural chemicals. This item (7) is exempt
from the | ||||||
21 | provisions of
Section 3-75.
| ||||||
22 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
23 | to or used by an air common
carrier, certified by the carrier | ||||||
24 | to be used for consumption, shipment, or
storage in the conduct | ||||||
25 | of its business as an air common carrier, for a
flight destined | ||||||
26 | for or returning from a location or locations
outside the |
| |||||||
| |||||||
1 | United States without regard to previous or subsequent domestic
| ||||||
2 | stopovers.
| ||||||
3 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
4 | or used by an air carrier, certified by the carrier to be used | ||||||
5 | for consumption, shipment, or storage in the conduct of its | ||||||
6 | business as an air common carrier, for a flight that (i) is | ||||||
7 | engaged in foreign trade or is engaged in trade between the | ||||||
8 | United States and any of its possessions and (ii) transports at | ||||||
9 | least one individual or package for hire from the city of | ||||||
10 | origination to the city of final destination on the same | ||||||
11 | aircraft, without regard to a change in the flight number of | ||||||
12 | that aircraft. | ||||||
13 | (9) Proceeds of mandatory service charges separately | ||||||
14 | stated on
customers' bills for the purchase and consumption of | ||||||
15 | food and beverages
acquired as an incident to the purchase of a | ||||||
16 | service from a serviceman, to
the extent that the proceeds of | ||||||
17 | the service charge are in fact
turned over as tips or as a | ||||||
18 | substitute for tips to the employees who
participate directly | ||||||
19 | in preparing, serving, hosting or cleaning up the
food or | ||||||
20 | beverage function with respect to which the service charge is | ||||||
21 | imposed.
| ||||||
22 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
23 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
24 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
25 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
26 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
| |||||||
| |||||||
1 | individual replacement part for oil field exploration,
| ||||||
2 | drilling, and production equipment, and (vi) machinery and | ||||||
3 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
4 | required to be registered under the Illinois
Vehicle Code.
| ||||||
5 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
6 | and
equipment, including repair and replacement parts, both new | ||||||
7 | and
used, including that manufactured on special order, | ||||||
8 | certified by the
purchaser to be used primarily for | ||||||
9 | photoprocessing, and including
photoprocessing machinery and | ||||||
10 | equipment purchased for lease.
| ||||||
11 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
12 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
13 | reclamation equipment, including
replacement parts and | ||||||
14 | equipment, and including
equipment purchased for lease, but | ||||||
15 | excluding motor vehicles required to be
registered under the | ||||||
16 | Illinois Vehicle Code. The changes made to this Section by | ||||||
17 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
18 | for credit or refund is allowed on or after August 16, 2013 | ||||||
19 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
20 | during the period beginning July 1, 2003 and ending on August | ||||||
21 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
22 | (13) Semen used for artificial insemination of livestock | ||||||
23 | for direct
agricultural production.
| ||||||
24 | (14) Horses, or interests in horses, registered with and | ||||||
25 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
26 | Registry of America, Appaloosa Horse Club, American Quarter
|
| |||||||
| |||||||
1 | Horse Association, United States
Trotting Association, or | ||||||
2 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
3 | racing for prizes. This item (14) is exempt from the provisions | ||||||
4 | of Section 3-75, and the exemption provided for under this item | ||||||
5 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
6 | claim for credit or refund is allowed on or after January 1, | ||||||
7 | 2008 (the effective date of Public Act 95-88) for such taxes | ||||||
8 | paid during the period beginning May 30, 2000 and ending on | ||||||
9 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
10 | (15) Computers and communications equipment utilized for | ||||||
11 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
12 | analysis, or treatment of hospital patients purchased by a | ||||||
13 | lessor who leases
the
equipment, under a lease of one year or | ||||||
14 | longer executed or in effect at the
time
the lessor would | ||||||
15 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
16 | hospital
that has been issued an active tax exemption | ||||||
17 | identification number by the
Department under Section 1g of the | ||||||
18 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
19 | manner that does not qualify for
this exemption
or is used in | ||||||
20 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
21 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
22 | be, based on the fair market value of the property at the time | ||||||
23 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
24 | attempt to collect an
amount (however
designated) that purports | ||||||
25 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
26 | Use Tax Act, as the case may be, if the tax has not been
paid by |
| |||||||
| |||||||
1 | the lessor. If a lessor improperly collects any such amount | ||||||
2 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
3 | refund of that amount
from the lessor. If, however, that amount | ||||||
4 | is not refunded to the lessee for
any reason, the lessor is | ||||||
5 | liable to pay that amount to the Department.
| ||||||
6 | (16) Personal property purchased by a lessor who leases the
| ||||||
7 | property, under
a
lease of one year or longer executed or in | ||||||
8 | effect at the time
the lessor would otherwise be subject to the | ||||||
9 | tax imposed by this Act,
to a governmental body
that has been | ||||||
10 | issued an active tax exemption identification number by the
| ||||||
11 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
12 | Act.
If the
property is leased in a manner that does not | ||||||
13 | qualify for
this exemption
or is used in any other non-exempt | ||||||
14 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
15 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
16 | fair market value of the property at the time the
| ||||||
17 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
18 | to collect an
amount (however
designated) that purports to | ||||||
19 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
20 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
21 | the lessor. If a lessor improperly collects any such amount | ||||||
22 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
23 | refund of that amount
from the lessor. If, however, that amount | ||||||
24 | is not refunded to the lessee for
any reason, the lessor is | ||||||
25 | liable to pay that amount to the Department.
| ||||||
26 | (17) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December
31,
1995
and
ending with taxable years ending on or | ||||||
2 | before December 31, 2004,
personal property that is
donated for | ||||||
3 | disaster relief to be used in a State or federally declared
| ||||||
4 | disaster area in Illinois or bordering Illinois by a | ||||||
5 | manufacturer or retailer
that is registered in this State to a | ||||||
6 | corporation, society, association,
foundation, or institution | ||||||
7 | that has been issued a sales tax exemption
identification | ||||||
8 | number by the Department that assists victims of the disaster
| ||||||
9 | who reside within the declared disaster area.
| ||||||
10 | (18) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995 and
ending with taxable years ending on or | ||||||
12 | before December 31, 2004, personal
property that is used in the | ||||||
13 | performance of infrastructure repairs in this
State, including | ||||||
14 | but not limited to municipal roads and streets, access roads,
| ||||||
15 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
16 | line extensions,
water distribution and purification | ||||||
17 | facilities, storm water drainage and
retention facilities, and | ||||||
18 | sewage treatment facilities, resulting from a State
or | ||||||
19 | federally declared disaster in Illinois or bordering Illinois | ||||||
20 | when such
repairs are initiated on facilities located in the | ||||||
21 | declared disaster area
within 6 months after the disaster.
| ||||||
22 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
23 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
24 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
25 | provisions
of
Section 3-75.
| ||||||
26 | (20) A motor vehicle, as that term is defined in Section |
| |||||||
| |||||||
1 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
2 | corporation, limited liability
company, society, association, | ||||||
3 | foundation, or institution that is determined by
the Department | ||||||
4 | to be organized and operated exclusively for educational
| ||||||
5 | purposes. For purposes of this exemption, "a corporation, | ||||||
6 | limited liability
company, society, association, foundation, | ||||||
7 | or institution organized and
operated
exclusively for | ||||||
8 | educational purposes" means all tax-supported public schools,
| ||||||
9 | private schools that offer systematic instruction in useful | ||||||
10 | branches of
learning by methods common to public schools and | ||||||
11 | that compare favorably in
their scope and intensity with the | ||||||
12 | course of study presented in tax-supported
schools, and | ||||||
13 | vocational or technical schools or institutes organized and
| ||||||
14 | operated exclusively to provide a course of study of not less | ||||||
15 | than 6 weeks
duration and designed to prepare individuals to | ||||||
16 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
17 | industrial, business, or commercial
occupation.
| ||||||
18 | (21) Beginning January 1, 2000, personal property, | ||||||
19 | including
food,
purchased through fundraising
events for the | ||||||
20 | benefit of
a public or private elementary or
secondary school, | ||||||
21 | a group of those schools, or one or more school
districts if | ||||||
22 | the events are
sponsored by an entity recognized by the school | ||||||
23 | district that consists
primarily of volunteers and includes
| ||||||
24 | parents and teachers of the school children. This paragraph | ||||||
25 | does not apply
to fundraising
events (i) for the benefit of | ||||||
26 | private home instruction or (ii)
for which the fundraising |
| |||||||
| |||||||
1 | entity purchases the personal property sold at
the events from | ||||||
2 | another individual or entity that sold the property for the
| ||||||
3 | purpose of resale by the fundraising entity and that
profits | ||||||
4 | from the sale to the
fundraising entity. This paragraph is | ||||||
5 | exempt
from the provisions
of Section 3-75.
| ||||||
6 | (22) Beginning January 1, 2000
and through December 31, | ||||||
7 | 2001, new or used automatic vending
machines that prepare and | ||||||
8 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
9 | items, and replacement parts for these machines.
Beginning | ||||||
10 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
11 | for machines used in
commercial, coin-operated
amusement
and | ||||||
12 | vending business if a use or occupation tax is paid on the | ||||||
13 | gross receipts
derived from
the use of the commercial, | ||||||
14 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
15 | is exempt from the provisions of Section 3-75.
| ||||||
16 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
17 | food for human consumption that is to be consumed off the
| ||||||
18 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
19 | drinks, and food that
has been prepared for immediate | ||||||
20 | consumption) and prescription and
nonprescription medicines, | ||||||
21 | drugs, medical appliances, and insulin, urine
testing | ||||||
22 | materials, syringes, and needles used by diabetics, for human | ||||||
23 | use, when
purchased for use by a person receiving medical | ||||||
24 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
25 | resides in a licensed long-term care facility,
as defined in | ||||||
26 | the Nursing Home Care Act, or in a licensed facility as defined |
| |||||||
| |||||||
1 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
2 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
3 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
4 | Public Act 92-227), computers and communications equipment
| ||||||
5 | utilized for any hospital purpose and equipment used in the | ||||||
6 | diagnosis,
analysis, or treatment of hospital patients | ||||||
7 | purchased by a lessor who leases
the equipment, under a lease | ||||||
8 | of one year or longer executed or in effect at the
time the | ||||||
9 | lessor would otherwise be subject to the tax imposed by this | ||||||
10 | Act, to a
hospital that has been issued an active tax exemption | ||||||
11 | identification number by
the Department under Section 1g of the | ||||||
12 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
13 | manner that does not qualify for this exemption or is
used in | ||||||
14 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
15 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
16 | be, based on the
fair market value of the property at the time | ||||||
17 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
18 | attempt to collect an amount (however
designated) that purports | ||||||
19 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
20 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
21 | the lessor. If a lessor improperly collects any such amount | ||||||
22 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
23 | refund of that amount
from the lessor. If, however, that amount | ||||||
24 | is not refunded to the lessee for
any reason, the lessor is | ||||||
25 | liable to pay that amount to the Department.
This paragraph is | ||||||
26 | exempt from the provisions of Section 3-75.
|
| |||||||
| |||||||
1 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
2 | Public Act 92-227),
personal property purchased by a lessor
who | ||||||
3 | leases the property, under a lease of one year or longer | ||||||
4 | executed or in
effect at the time the lessor would otherwise be | ||||||
5 | subject to the tax imposed by
this Act, to a governmental body | ||||||
6 | that has been issued an active tax exemption
identification | ||||||
7 | number by the Department under Section 1g of the Retailers'
| ||||||
8 | Occupation Tax Act. If the property is leased in a manner that | ||||||
9 | does not
qualify for this exemption or is used in any other | ||||||
10 | nonexempt manner, the
lessor shall be liable for the tax | ||||||
11 | imposed under this Act or the Use Tax Act,
as the case may be, | ||||||
12 | based on the fair market value of the property at the time
the | ||||||
13 | nonqualifying use occurs. No lessor shall collect or attempt to | ||||||
14 | collect
an amount (however designated) that purports to | ||||||
15 | reimburse that lessor for the
tax imposed by this Act or the | ||||||
16 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
17 | the lessor. If a lessor improperly collects any such amount
| ||||||
18 | from the lessee, the lessee shall have a legal right to claim a | ||||||
19 | refund of that
amount from the lessor. If, however, that amount | ||||||
20 | is not refunded to the lessee
for any reason, the lessor is | ||||||
21 | liable to pay that amount to the Department.
This paragraph is | ||||||
22 | exempt from the provisions of Section 3-75.
| ||||||
23 | (26) Beginning January 1, 2008, tangible personal property | ||||||
24 | used in the construction or maintenance of a community water | ||||||
25 | supply, as defined under Section 3.145 of the Environmental | ||||||
26 | Protection Act, that is operated by a not-for-profit |
| |||||||
| |||||||
1 | corporation that holds a valid water supply permit issued under | ||||||
2 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
3 | exempt from the provisions of Section 3-75.
| ||||||
4 | (27) Beginning January 1, 2010 and continuing through | ||||||
5 | December 31, 2024 , materials, parts, equipment, components, | ||||||
6 | and furnishings incorporated into or upon an aircraft as part | ||||||
7 | of the modification, refurbishment, completion, replacement, | ||||||
8 | repair, or maintenance of the aircraft. This exemption includes | ||||||
9 | consumable supplies used in the modification, refurbishment, | ||||||
10 | completion, replacement, repair, and maintenance of aircraft, | ||||||
11 | but excludes any materials, parts, equipment, components, and | ||||||
12 | consumable supplies used in the modification, replacement, | ||||||
13 | repair, and maintenance of aircraft engines or power plants, | ||||||
14 | whether such engines or power plants are installed or | ||||||
15 | uninstalled upon any such aircraft. "Consumable supplies" | ||||||
16 | include, but are not limited to, adhesive, tape, sandpaper, | ||||||
17 | general purpose lubricants, cleaning solution, latex gloves, | ||||||
18 | and protective films. This exemption applies only to the use of | ||||||
19 | qualifying tangible personal property transferred incident to | ||||||
20 | the modification, refurbishment, completion, replacement, | ||||||
21 | repair, or maintenance of aircraft by persons who (i) hold an | ||||||
22 | Air Agency Certificate and are empowered to operate an approved | ||||||
23 | repair station by the Federal Aviation Administration, (ii) | ||||||
24 | have a Class IV Rating, and (iii) conduct operations in | ||||||
25 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
26 | The exemption does not include aircraft operated by a |
| |||||||
| |||||||
1 | commercial air carrier providing scheduled passenger air | ||||||
2 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
3 | of the Federal Aviation Regulations. The changes made to this | ||||||
4 | paragraph (27) by Public Act 98-534 are declarative of existing | ||||||
5 | law. It is the intent of the General Assembly that the | ||||||
6 | exemption under this paragraph (27) applies continuously from | ||||||
7 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
8 | for credit or refund is allowed for taxes paid as a result of | ||||||
9 | the disallowance of this exemption on or after January 1, 2015 | ||||||
10 | and prior to the effective date of this amendatory Act of the | ||||||
11 | 101st General Assembly. | ||||||
12 | (28) Tangible personal property purchased by a | ||||||
13 | public-facilities corporation, as described in Section | ||||||
14 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
15 | constructing or furnishing a municipal convention hall, but | ||||||
16 | only if the legal title to the municipal convention hall is | ||||||
17 | transferred to the municipality without any further | ||||||
18 | consideration by or on behalf of the municipality at the time | ||||||
19 | of the completion of the municipal convention hall or upon the | ||||||
20 | retirement or redemption of any bonds or other debt instruments | ||||||
21 | issued by the public-facilities corporation in connection with | ||||||
22 | the development of the municipal convention hall. This | ||||||
23 | exemption includes existing public-facilities corporations as | ||||||
24 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
25 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
26 | (29) Beginning January 1, 2017, menstrual pads, tampons, |
| |||||||
| |||||||
1 | and menstrual cups. | ||||||
2 | (30) Tangible personal property transferred to a purchaser | ||||||
3 | who is exempt from the tax imposed by this Act by operation of | ||||||
4 | federal law. This paragraph is exempt from the provisions of | ||||||
5 | Section 3-75. | ||||||
6 | (31) Qualified tangible personal property used in the | ||||||
7 | construction or operation of a data center that has been | ||||||
8 | granted a certificate of exemption by the Department of | ||||||
9 | Commerce and Economic Opportunity, whether that tangible | ||||||
10 | personal property is purchased by the owner, operator, or | ||||||
11 | tenant of the data center or by a contractor or subcontractor | ||||||
12 | of the owner, operator, or tenant. Data centers that would have | ||||||
13 | qualified for a certificate of exemption prior to January 1, | ||||||
14 | 2020 had this amendatory Act of the 101st General Assembly been | ||||||
15 | in effect, may apply for and obtain an exemption for subsequent | ||||||
16 | purchases of computer equipment or enabling software purchased | ||||||
17 | or leased to upgrade, supplement, or replace computer equipment | ||||||
18 | or enabling software purchased or leased in the original | ||||||
19 | investment that would have qualified. | ||||||
20 | The Department of Commerce and Economic Opportunity shall | ||||||
21 | grant a certificate of exemption under this item (31) to | ||||||
22 | qualified data centers as defined by Section 605-1025 of the | ||||||
23 | Department of Commerce and Economic Opportunity Law of the
| ||||||
24 | Civil Administrative Code of Illinois. | ||||||
25 | For the purposes of this item (31): | ||||||
26 | "Data center" means a building or a series of buildings |
| |||||||
| |||||||
1 | rehabilitated or constructed to house working servers in | ||||||
2 | one physical location or multiple sites within the State of | ||||||
3 | Illinois. | ||||||
4 | "Qualified tangible personal property" means: | ||||||
5 | electrical systems and equipment; climate control and | ||||||
6 | chilling equipment and systems; mechanical systems and | ||||||
7 | equipment; monitoring and secure systems; emergency | ||||||
8 | generators; hardware; computers; servers; data storage | ||||||
9 | devices; network connectivity equipment; racks; cabinets; | ||||||
10 | telecommunications cabling infrastructure; raised floor | ||||||
11 | systems; peripheral components or systems; software; | ||||||
12 | mechanical, electrical, or plumbing systems; battery | ||||||
13 | systems; cooling systems and towers; temperature control | ||||||
14 | systems; other cabling; and other data center | ||||||
15 | infrastructure equipment and systems necessary to operate | ||||||
16 | qualified tangible personal property, including fixtures; | ||||||
17 | and component parts of any of the foregoing, including | ||||||
18 | installation, maintenance, repair, refurbishment, and | ||||||
19 | replacement of qualified tangible personal property to | ||||||
20 | generate, transform, transmit, distribute, or manage | ||||||
21 | electricity necessary to operate qualified tangible | ||||||
22 | personal property; and all other tangible personal | ||||||
23 | property that is essential to the operations of a computer | ||||||
24 | data center. The term "qualified tangible personal | ||||||
25 | property" also includes building materials physically | ||||||
26 | incorporated in to the qualifying data center. To document |
| |||||||
| |||||||
1 | the exemption allowed under this Section, the retailer must | ||||||
2 | obtain from the purchaser a copy of the certificate of | ||||||
3 | eligibility issued by the Department of Commerce and | ||||||
4 | Economic Opportunity. | ||||||
5 | This item (31) is exempt from the provisions of Section | ||||||
6 | 3-75. | ||||||
7 | (Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; | ||||||
8 | 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff. | ||||||
9 | 7-12-19.)
| ||||||
10 | Section 15. The Service Occupation Tax Act is amended by | ||||||
11 | changing Section 3-5 as follows:
| ||||||
12 | (35 ILCS 115/3-5)
| ||||||
13 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
14 | property is
exempt from the tax imposed by this Act:
| ||||||
15 | (1) Personal property sold by a corporation, society, | ||||||
16 | association,
foundation, institution, or organization, other | ||||||
17 | than a limited liability
company, that is organized and | ||||||
18 | operated as a not-for-profit service enterprise
for the benefit | ||||||
19 | of persons 65 years of age or older if the personal property
| ||||||
20 | was not purchased by the enterprise for the purpose of resale | ||||||
21 | by the
enterprise.
| ||||||
22 | (2) Personal property purchased by a not-for-profit | ||||||
23 | Illinois county fair
association for use in conducting, | ||||||
24 | operating, or promoting the county fair.
|
| |||||||
| |||||||
1 | (3) Personal property purchased by any not-for-profit
arts | ||||||
2 | or cultural organization that establishes, by proof required by | ||||||
3 | the
Department by
rule, that it has received an exemption under | ||||||
4 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
5 | organized and operated primarily for the
presentation
or | ||||||
6 | support of arts or cultural programming, activities, or | ||||||
7 | services. These
organizations include, but are not limited to, | ||||||
8 | music and dramatic arts
organizations such as symphony | ||||||
9 | orchestras and theatrical groups, arts and
cultural service | ||||||
10 | organizations, local arts councils, visual arts organizations,
| ||||||
11 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
12 | effective date of Public Act 92-35), however, an entity | ||||||
13 | otherwise eligible for this exemption shall not
make tax-free | ||||||
14 | purchases unless it has an active identification number issued | ||||||
15 | by
the Department.
| ||||||
16 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
17 | coinage
issued by the State of Illinois, the government of the | ||||||
18 | United States of
America, or the government of any foreign | ||||||
19 | country, and bullion.
| ||||||
20 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
21 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
22 | equipment, including
repair and
replacement parts, both new and | ||||||
23 | used, and including that manufactured on
special order or | ||||||
24 | purchased for lease, certified by the purchaser to be used
| ||||||
25 | primarily for graphic arts production.
Equipment includes | ||||||
26 | chemicals or chemicals acting as catalysts but only if
the
|
| |||||||
| |||||||
1 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
2 | immediate change
upon a graphic arts product. Beginning on July | ||||||
3 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
4 | the manufacturing and assembling machinery and equipment | ||||||
5 | exemption under Section 2 of this Act.
| ||||||
6 | (6) Personal property sold by a teacher-sponsored student | ||||||
7 | organization
affiliated with an elementary or secondary school | ||||||
8 | located in Illinois.
| ||||||
9 | (7) Farm machinery and equipment, both new and used, | ||||||
10 | including that
manufactured on special order, certified by the | ||||||
11 | purchaser to be used
primarily for production agriculture or | ||||||
12 | State or federal agricultural
programs, including individual | ||||||
13 | replacement parts for the machinery and
equipment, including | ||||||
14 | machinery and equipment purchased for lease,
and including | ||||||
15 | implements of husbandry defined in Section 1-130 of
the | ||||||
16 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
17 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
18 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
19 | but
excluding other motor vehicles required to be registered | ||||||
20 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
21 | hoop houses used for propagating, growing, or
overwintering | ||||||
22 | plants shall be considered farm machinery and equipment under
| ||||||
23 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
24 | shall include units sold
separately from a motor vehicle | ||||||
25 | required to be licensed and units sold mounted
on a motor | ||||||
26 | vehicle required to be licensed if the selling price of the |
| |||||||
| |||||||
1 | tender
is separately stated.
| ||||||
2 | Farm machinery and equipment shall include precision | ||||||
3 | farming equipment
that is
installed or purchased to be | ||||||
4 | installed on farm machinery and equipment
including, but not | ||||||
5 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
6 | or spreaders.
Precision farming equipment includes, but is not | ||||||
7 | limited to,
soil testing sensors, computers, monitors, | ||||||
8 | software, global positioning
and mapping systems, and other | ||||||
9 | such equipment.
| ||||||
10 | Farm machinery and equipment also includes computers, | ||||||
11 | sensors, software, and
related equipment used primarily in the
| ||||||
12 | computer-assisted operation of production agriculture | ||||||
13 | facilities, equipment,
and activities such as, but
not limited | ||||||
14 | to,
the collection, monitoring, and correlation of
animal and | ||||||
15 | crop data for the purpose of
formulating animal diets and | ||||||
16 | agricultural chemicals. This item (7) is exempt
from the | ||||||
17 | provisions of
Section 3-55.
| ||||||
18 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
19 | to or used by an air common
carrier, certified by the carrier | ||||||
20 | to be used for consumption, shipment,
or storage in the conduct | ||||||
21 | of its business as an air common carrier, for
a flight destined | ||||||
22 | for or returning from a location or locations
outside the | ||||||
23 | United States without regard to previous or subsequent domestic
| ||||||
24 | stopovers.
| ||||||
25 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
26 | or used by an air carrier, certified by the carrier to be used |
| |||||||
| |||||||
1 | for consumption, shipment, or storage in the conduct of its | ||||||
2 | business as an air common carrier, for a flight that (i) is | ||||||
3 | engaged in foreign trade or is engaged in trade between the | ||||||
4 | United States and any of its possessions and (ii) transports at | ||||||
5 | least one individual or package for hire from the city of | ||||||
6 | origination to the city of final destination on the same | ||||||
7 | aircraft, without regard to a change in the flight number of | ||||||
8 | that aircraft. | ||||||
9 | (9) Proceeds of mandatory service charges separately
| ||||||
10 | stated on customers' bills for the purchase and consumption of | ||||||
11 | food and
beverages, to the extent that the proceeds of the | ||||||
12 | service charge are in fact
turned over as tips or as a | ||||||
13 | substitute for tips to the employees who
participate directly | ||||||
14 | in preparing, serving, hosting or cleaning up the
food or | ||||||
15 | beverage function with respect to which the service charge is | ||||||
16 | imposed.
| ||||||
17 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
18 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
19 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
20 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
21 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
22 | individual replacement part for oil field exploration,
| ||||||
23 | drilling, and production equipment, and (vi) machinery and | ||||||
24 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
25 | required to be registered under the Illinois
Vehicle Code.
| ||||||
26 | (11) Photoprocessing machinery and equipment, including |
| |||||||
| |||||||
1 | repair and
replacement parts, both new and used, including that | ||||||
2 | manufactured on
special order, certified by the purchaser to be | ||||||
3 | used primarily for
photoprocessing, and including | ||||||
4 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
5 | (12) Until July 1, 2023, coal and aggregate exploration, | ||||||
6 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
7 | reclamation equipment, including
replacement parts and | ||||||
8 | equipment, and including
equipment
purchased for lease, but | ||||||
9 | excluding motor vehicles required to be registered
under the | ||||||
10 | Illinois Vehicle Code. The changes made to this Section by | ||||||
11 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
12 | for credit or refund is allowed on or after August 16, 2013 | ||||||
13 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
14 | during the period beginning July 1, 2003 and ending on August | ||||||
15 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
16 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
17 | food for human consumption that is to be consumed off the | ||||||
18 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
19 | drinks and food that
has been prepared for immediate | ||||||
20 | consumption) and prescription and
non-prescription medicines, | ||||||
21 | drugs, medical appliances, and insulin, urine
testing | ||||||
22 | materials, syringes, and needles used by diabetics, for human | ||||||
23 | use,
when purchased for use by a person receiving medical | ||||||
24 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
25 | resides in a licensed
long-term care facility, as defined in | ||||||
26 | the Nursing Home Care Act, or in a licensed facility as defined |
| |||||||
| |||||||
1 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
2 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
3 | (14) Semen used for artificial insemination of livestock | ||||||
4 | for direct
agricultural production.
| ||||||
5 | (15) Horses, or interests in horses, registered with and | ||||||
6 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
7 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
8 | Horse Association, United States
Trotting Association, or | ||||||
9 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
10 | racing for prizes. This item (15) is exempt from the provisions | ||||||
11 | of Section 3-55, and the exemption provided for under this item | ||||||
12 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
13 | claim for credit or refund is allowed on or after January 1, | ||||||
14 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
15 | paid during the period beginning May 30, 2000 and ending on | ||||||
16 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
17 | (16) Computers and communications equipment utilized for | ||||||
18 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
19 | analysis, or treatment of hospital patients sold to a lessor | ||||||
20 | who leases the
equipment, under a lease of one year or longer | ||||||
21 | executed or in effect at the
time of the purchase, to a
| ||||||
22 | hospital
that has been issued an active tax exemption | ||||||
23 | identification number by the
Department under Section 1g of the | ||||||
24 | Retailers' Occupation Tax Act.
| ||||||
25 | (17) Personal property sold to a lessor who leases the
| ||||||
26 | property, under a
lease of one year or longer executed or in |
| |||||||
| |||||||
1 | effect at the time of the purchase,
to a governmental body
that | ||||||
2 | has been issued an active tax exemption identification number | ||||||
3 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
4 | Tax Act.
| ||||||
5 | (18) Beginning with taxable years ending on or after | ||||||
6 | December
31, 1995
and
ending with taxable years ending on or | ||||||
7 | before December 31, 2004,
personal property that is
donated for | ||||||
8 | disaster relief to be used in a State or federally declared
| ||||||
9 | disaster area in Illinois or bordering Illinois by a | ||||||
10 | manufacturer or retailer
that is registered in this State to a | ||||||
11 | corporation, society, association,
foundation, or institution | ||||||
12 | that has been issued a sales tax exemption
identification | ||||||
13 | number by the Department that assists victims of the disaster
| ||||||
14 | who reside within the declared disaster area.
| ||||||
15 | (19) Beginning with taxable years ending on or after | ||||||
16 | December
31, 1995 and
ending with taxable years ending on or | ||||||
17 | before December 31, 2004, personal
property that is used in the | ||||||
18 | performance of infrastructure repairs in this
State, including | ||||||
19 | but not limited to municipal roads and streets, access roads,
| ||||||
20 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
21 | line extensions,
water distribution and purification | ||||||
22 | facilities, storm water drainage and
retention facilities, and | ||||||
23 | sewage treatment facilities, resulting from a State
or | ||||||
24 | federally declared disaster in Illinois or bordering Illinois | ||||||
25 | when such
repairs are initiated on facilities located in the | ||||||
26 | declared disaster area
within 6 months after the disaster.
|
| |||||||
| |||||||
1 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
2 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
3 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
4 | provisions
of
Section 3-55.
| ||||||
5 | (21) A motor vehicle, as that term is defined in Section | ||||||
6 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
7 | corporation, limited liability
company, society, association, | ||||||
8 | foundation, or institution that is determined by
the Department | ||||||
9 | to be organized and operated exclusively for educational
| ||||||
10 | purposes. For purposes of this exemption, "a corporation, | ||||||
11 | limited liability
company, society, association, foundation, | ||||||
12 | or institution organized and
operated
exclusively for | ||||||
13 | educational purposes" means all tax-supported public schools,
| ||||||
14 | private schools that offer systematic instruction in useful | ||||||
15 | branches of
learning by methods common to public schools and | ||||||
16 | that compare favorably in
their scope and intensity with the | ||||||
17 | course of study presented in tax-supported
schools, and | ||||||
18 | vocational or technical schools or institutes organized and
| ||||||
19 | operated exclusively to provide a course of study of not less | ||||||
20 | than 6 weeks
duration and designed to prepare individuals to | ||||||
21 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
22 | industrial, business, or commercial
occupation.
| ||||||
23 | (22) Beginning January 1, 2000, personal property, | ||||||
24 | including
food,
purchased through fundraising
events for the | ||||||
25 | benefit of
a public or private elementary or
secondary school, | ||||||
26 | a group of those schools, or one or more school
districts if |
| |||||||
| |||||||
1 | the events are
sponsored by an entity recognized by the school | ||||||
2 | district that consists
primarily of volunteers and includes
| ||||||
3 | parents and teachers of the school children. This paragraph | ||||||
4 | does not apply
to fundraising
events (i) for the benefit of | ||||||
5 | private home instruction or (ii)
for which the fundraising | ||||||
6 | entity purchases the personal property sold at
the events from | ||||||
7 | another individual or entity that sold the property for the
| ||||||
8 | purpose of resale by the fundraising entity and that
profits | ||||||
9 | from the sale to the
fundraising entity. This paragraph is | ||||||
10 | exempt
from the provisions
of Section 3-55.
| ||||||
11 | (23) Beginning January 1, 2000
and through December 31, | ||||||
12 | 2001, new or used automatic vending
machines that prepare and | ||||||
13 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
14 | items, and replacement parts for these machines.
Beginning | ||||||
15 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
16 | for
machines used in commercial, coin-operated amusement
and | ||||||
17 | vending business if a use or occupation tax is paid on the | ||||||
18 | gross receipts
derived from
the use of the commercial, | ||||||
19 | coin-operated amusement and vending machines.
This paragraph | ||||||
20 | is exempt from the provisions of Section 3-55.
| ||||||
21 | (24) Beginning
on August 2, 2001 (the effective date of | ||||||
22 | Public Act 92-227),
computers and communications equipment
| ||||||
23 | utilized for any hospital purpose and equipment used in the | ||||||
24 | diagnosis,
analysis, or treatment of hospital patients sold to | ||||||
25 | a lessor who leases the
equipment, under a lease of one year or | ||||||
26 | longer executed or in effect at the
time of the purchase, to a |
| |||||||
| |||||||
1 | hospital that has been issued an active tax
exemption | ||||||
2 | identification number by the Department under Section 1g of the
| ||||||
3 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
4 | the provisions of
Section 3-55.
| ||||||
5 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
6 | Public Act 92-227),
personal property sold to a lessor who
| ||||||
7 | leases the property, under a lease of one year or longer | ||||||
8 | executed or in effect
at the time of the purchase, to a | ||||||
9 | governmental body that has been issued an
active tax exemption | ||||||
10 | identification number by the Department under Section 1g
of the | ||||||
11 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
12 | the
provisions of Section 3-55.
| ||||||
13 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
14 | 2016, tangible personal property
purchased
from an Illinois | ||||||
15 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
16 | activities in Illinois who will, upon receipt of the property | ||||||
17 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
18 | the purpose of subsequently
transporting it outside this State | ||||||
19 | for use or consumption thereafter solely
outside this State or | ||||||
20 | (ii) for the purpose of being processed, fabricated, or
| ||||||
21 | manufactured into, attached to, or incorporated into other | ||||||
22 | tangible personal
property to be transported outside this State | ||||||
23 | and thereafter used or consumed
solely outside this State. The | ||||||
24 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
25 | accordance with the Illinois Administrative Procedure Act, | ||||||
26 | issue a
permit to any taxpayer in good standing with the |
| |||||||
| |||||||
1 | Department who is eligible for
the exemption under this | ||||||
2 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
3 | shall authorize the holder, to the extent and
in the manner | ||||||
4 | specified in the rules adopted under this Act, to purchase
| ||||||
5 | tangible personal property from a retailer exempt from the | ||||||
6 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
7 | necessary books and records to
substantiate the use and | ||||||
8 | consumption of all such tangible personal property
outside of | ||||||
9 | the State of Illinois.
| ||||||
10 | (27) Beginning January 1, 2008, tangible personal property | ||||||
11 | used in the construction or maintenance of a community water | ||||||
12 | supply, as defined under Section 3.145 of the Environmental | ||||||
13 | Protection Act, that is operated by a not-for-profit | ||||||
14 | corporation that holds a valid water supply permit issued under | ||||||
15 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
16 | exempt from the provisions of Section 3-55.
| ||||||
17 | (28) Tangible personal property sold to a | ||||||
18 | public-facilities corporation, as described in Section | ||||||
19 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
20 | constructing or furnishing a municipal convention hall, but | ||||||
21 | only if the legal title to the municipal convention hall is | ||||||
22 | transferred to the municipality without any further | ||||||
23 | consideration by or on behalf of the municipality at the time | ||||||
24 | of the completion of the municipal convention hall or upon the | ||||||
25 | retirement or redemption of any bonds or other debt instruments | ||||||
26 | issued by the public-facilities corporation in connection with |
| |||||||
| |||||||
1 | the development of the municipal convention hall. This | ||||||
2 | exemption includes existing public-facilities corporations as | ||||||
3 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
4 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
5 | (29) Beginning January 1, 2010 and continuing through | ||||||
6 | December 31, 2024 , materials, parts, equipment, components, | ||||||
7 | and furnishings incorporated into or upon an aircraft as part | ||||||
8 | of the modification, refurbishment, completion, replacement, | ||||||
9 | repair, or maintenance of the aircraft. This exemption includes | ||||||
10 | consumable supplies used in the modification, refurbishment, | ||||||
11 | completion, replacement, repair, and maintenance of aircraft, | ||||||
12 | but excludes any materials, parts, equipment, components, and | ||||||
13 | consumable supplies used in the modification, replacement, | ||||||
14 | repair, and maintenance of aircraft engines or power plants, | ||||||
15 | whether such engines or power plants are installed or | ||||||
16 | uninstalled upon any such aircraft. "Consumable supplies" | ||||||
17 | include, but are not limited to, adhesive, tape, sandpaper, | ||||||
18 | general purpose lubricants, cleaning solution, latex gloves, | ||||||
19 | and protective films. This exemption applies only to the | ||||||
20 | transfer of qualifying tangible personal property incident to | ||||||
21 | the modification, refurbishment, completion, replacement, | ||||||
22 | repair, or maintenance of an aircraft by persons who (i) hold | ||||||
23 | an Air Agency Certificate and are empowered to operate an | ||||||
24 | approved repair station by the Federal Aviation | ||||||
25 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
26 | operations in accordance with Part 145 of the Federal Aviation |
| |||||||
| |||||||
1 | Regulations. The exemption does not include aircraft operated | ||||||
2 | by a commercial air carrier providing scheduled passenger air | ||||||
3 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
4 | of the Federal Aviation Regulations. The changes made to this | ||||||
5 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
6 | law. It is the intent of the General Assembly that the | ||||||
7 | exemption under this paragraph (29) applies continuously from | ||||||
8 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
9 | for credit or refund is allowed for taxes paid as a result of | ||||||
10 | the disallowance of this exemption on or after January 1, 2015 | ||||||
11 | and prior to the effective date of this amendatory Act of the | ||||||
12 | 101st General Assembly. | ||||||
13 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
14 | and menstrual cups. | ||||||
15 | (31) Tangible personal property transferred to a purchaser | ||||||
16 | who is exempt from tax by operation of federal law. This | ||||||
17 | paragraph is exempt from the provisions of Section 3-55. | ||||||
18 | (32) Qualified tangible personal property used in the | ||||||
19 | construction or operation of a data center that has been | ||||||
20 | granted a certificate of exemption by the Department of | ||||||
21 | Commerce and Economic Opportunity, whether that tangible | ||||||
22 | personal property is purchased by the owner, operator, or | ||||||
23 | tenant of the data center or by a contractor or subcontractor | ||||||
24 | of the owner, operator, or tenant. Data centers that would have | ||||||
25 | qualified for a certificate of exemption prior to January 1, | ||||||
26 | 2020 had this amendatory Act of the 101st General Assembly been |
| |||||||
| |||||||
1 | in effect, may apply for and obtain an exemption for subsequent | ||||||
2 | purchases of computer equipment or enabling software purchased | ||||||
3 | or leased to upgrade, supplement, or replace computer equipment | ||||||
4 | or enabling software purchased or leased in the original | ||||||
5 | investment that would have qualified. | ||||||
6 | The Department of Commerce and Economic Opportunity shall | ||||||
7 | grant a certificate of exemption under this item (32) to | ||||||
8 | qualified data centers as defined by Section 605-1025 of the | ||||||
9 | Department of Commerce and Economic Opportunity Law of the
| ||||||
10 | Civil Administrative Code of Illinois. | ||||||
11 | For the purposes of this item (32): | ||||||
12 | "Data center" means a building or a series of buildings | ||||||
13 | rehabilitated or constructed to house working servers in | ||||||
14 | one physical location or multiple sites within the State of | ||||||
15 | Illinois. | ||||||
16 | "Qualified tangible personal property" means: | ||||||
17 | electrical systems and equipment; climate control and | ||||||
18 | chilling equipment and systems; mechanical systems and | ||||||
19 | equipment; monitoring and secure systems; emergency | ||||||
20 | generators; hardware; computers; servers; data storage | ||||||
21 | devices; network connectivity equipment; racks; cabinets; | ||||||
22 | telecommunications cabling infrastructure; raised floor | ||||||
23 | systems; peripheral components or systems; software; | ||||||
24 | mechanical, electrical, or plumbing systems; battery | ||||||
25 | systems; cooling systems and towers; temperature control | ||||||
26 | systems; other cabling; and other data center |
| |||||||
| |||||||
1 | infrastructure equipment and systems necessary to operate | ||||||
2 | qualified tangible personal property, including fixtures; | ||||||
3 | and component parts of any of the foregoing, including | ||||||
4 | installation, maintenance, repair, refurbishment, and | ||||||
5 | replacement of qualified tangible personal property to | ||||||
6 | generate, transform, transmit, distribute, or manage | ||||||
7 | electricity necessary to operate qualified tangible | ||||||
8 | personal property; and all other tangible personal | ||||||
9 | property that is essential to the operations of a computer | ||||||
10 | data center. The term "qualified tangible personal | ||||||
11 | property" also includes building materials physically | ||||||
12 | incorporated in to the qualifying data center. To document | ||||||
13 | the exemption allowed under this Section, the retailer must | ||||||
14 | obtain from the purchaser a copy of the certificate of | ||||||
15 | eligibility issued by the Department of Commerce and | ||||||
16 | Economic Opportunity. | ||||||
17 | This item (32) is exempt from the provisions of Section | ||||||
18 | 3-55. | ||||||
19 | (Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; | ||||||
20 | 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff. | ||||||
21 | 7-12-19.)
| ||||||
22 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
23 | changing Section 2-5 as follows:
| ||||||
24 | (35 ILCS 120/2-5)
|
| |||||||
| |||||||
1 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
2 | sale of
the following tangible personal property are exempt | ||||||
3 | from the tax imposed
by this Act:
| ||||||
4 | (1) Farm chemicals.
| ||||||
5 | (2) Farm machinery and equipment, both new and used, | ||||||
6 | including that
manufactured on special order, certified by | ||||||
7 | the purchaser to be used
primarily for production | ||||||
8 | agriculture or State or federal agricultural
programs, | ||||||
9 | including individual replacement parts for the machinery | ||||||
10 | and
equipment, including machinery and equipment purchased | ||||||
11 | for lease,
and including implements of husbandry defined in | ||||||
12 | Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||||||
13 | and agricultural chemical and
fertilizer spreaders, and | ||||||
14 | nurse wagons required to be registered
under Section 3-809 | ||||||
15 | of the Illinois Vehicle Code,
but
excluding other motor | ||||||
16 | vehicles required to be registered under the Illinois
| ||||||
17 | Vehicle Code.
Horticultural polyhouses or hoop houses used | ||||||
18 | for propagating, growing, or
overwintering plants shall be | ||||||
19 | considered farm machinery and equipment under
this item | ||||||
20 | (2).
Agricultural chemical tender tanks and dry boxes shall | ||||||
21 | include units sold
separately from a motor vehicle required | ||||||
22 | to be licensed and units sold mounted
on a motor vehicle | ||||||
23 | required to be licensed, if the selling price of the tender
| ||||||
24 | is separately stated.
| ||||||
25 | Farm machinery and equipment shall include precision | ||||||
26 | farming equipment
that is
installed or purchased to be |
| |||||||
| |||||||
1 | installed on farm machinery and equipment
including, but | ||||||
2 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
3 | seeders, or spreaders.
Precision farming equipment | ||||||
4 | includes, but is not limited to,
soil testing sensors, | ||||||
5 | computers, monitors, software, global positioning
and | ||||||
6 | mapping systems, and other such equipment.
| ||||||
7 | Farm machinery and equipment also includes computers, | ||||||
8 | sensors, software, and
related equipment used primarily in | ||||||
9 | the
computer-assisted operation of production agriculture | ||||||
10 | facilities, equipment,
and activities such as, but
not | ||||||
11 | limited to,
the collection, monitoring, and correlation of
| ||||||
12 | animal and crop data for the purpose of
formulating animal | ||||||
13 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
14 | from the provisions of
Section 2-70.
| ||||||
15 | (3) Until July 1, 2003, distillation machinery and | ||||||
16 | equipment, sold as a
unit or kit,
assembled or installed by | ||||||
17 | the retailer, certified by the user to be used
only for the | ||||||
18 | production of ethyl alcohol that will be used for | ||||||
19 | consumption
as motor fuel or as a component of motor fuel | ||||||
20 | for the personal use of the
user, and not subject to sale | ||||||
21 | or resale.
| ||||||
22 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
23 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
24 | equipment, including
repair and
replacement parts, both | ||||||
25 | new and used, and including that manufactured on
special | ||||||
26 | order or purchased for lease, certified by the purchaser to |
| |||||||
| |||||||
1 | be used
primarily for graphic arts production.
Equipment | ||||||
2 | includes chemicals or
chemicals acting as catalysts but | ||||||
3 | only if
the chemicals or chemicals acting as catalysts | ||||||
4 | effect a direct and immediate
change upon a
graphic arts | ||||||
5 | product. Beginning on July 1, 2017, graphic arts machinery | ||||||
6 | and equipment is included in the manufacturing and | ||||||
7 | assembling machinery and equipment exemption under | ||||||
8 | paragraph (14).
| ||||||
9 | (5) A motor vehicle that is used for automobile | ||||||
10 | renting, as defined in the Automobile Renting Occupation | ||||||
11 | and Use Tax Act. This paragraph is exempt from
the | ||||||
12 | provisions of Section 2-70.
| ||||||
13 | (6) Personal property sold by a teacher-sponsored | ||||||
14 | student organization
affiliated with an elementary or | ||||||
15 | secondary school located in Illinois.
| ||||||
16 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
17 | selling price of
a passenger car the
sale of which is | ||||||
18 | subject to the Replacement Vehicle Tax.
| ||||||
19 | (8) Personal property sold to an Illinois county fair | ||||||
20 | association for
use in conducting, operating, or promoting | ||||||
21 | the county fair.
| ||||||
22 | (9) Personal property sold to a not-for-profit arts
or | ||||||
23 | cultural organization that establishes, by proof required | ||||||
24 | by the Department
by
rule, that it has received an | ||||||
25 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
26 | Code and that is organized and operated primarily for the
|
| |||||||
| |||||||
1 | presentation
or support of arts or cultural programming, | ||||||
2 | activities, or services. These
organizations include, but | ||||||
3 | are not limited to, music and dramatic arts
organizations | ||||||
4 | such as symphony orchestras and theatrical groups, arts and
| ||||||
5 | cultural service organizations, local arts councils, | ||||||
6 | visual arts organizations,
and media arts organizations.
| ||||||
7 | On and after July 1, 2001 (the effective date of Public Act | ||||||
8 | 92-35), however, an entity otherwise eligible for this | ||||||
9 | exemption shall not
make tax-free purchases unless it has | ||||||
10 | an active identification number issued by
the Department.
| ||||||
11 | (10) Personal property sold by a corporation, society, | ||||||
12 | association,
foundation, institution, or organization, | ||||||
13 | other than a limited liability
company, that is organized | ||||||
14 | and operated as a not-for-profit service enterprise
for the | ||||||
15 | benefit of persons 65 years of age or older if the personal | ||||||
16 | property
was not purchased by the enterprise for the | ||||||
17 | purpose of resale by the
enterprise.
| ||||||
18 | (11) Personal property sold to a governmental body, to | ||||||
19 | a corporation,
society, association, foundation, or | ||||||
20 | institution organized and operated
exclusively for | ||||||
21 | charitable, religious, or educational purposes, or to a
| ||||||
22 | not-for-profit corporation, society, association, | ||||||
23 | foundation, institution,
or organization that has no | ||||||
24 | compensated officers or employees and that is
organized and | ||||||
25 | operated primarily for the recreation of persons 55 years | ||||||
26 | of
age or older. A limited liability company may qualify |
| |||||||
| |||||||
1 | for the exemption under
this paragraph only if the limited | ||||||
2 | liability company is organized and operated
exclusively | ||||||
3 | for educational purposes. On and after July 1, 1987, | ||||||
4 | however, no
entity otherwise eligible for this exemption | ||||||
5 | shall make tax-free purchases
unless it has an active | ||||||
6 | identification number issued by the Department.
| ||||||
7 | (12) (Blank).
| ||||||
8 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
9 | 2004, motor vehicles of the second division
with a gross | ||||||
10 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
11 | to the commercial distribution fee imposed under Section | ||||||
12 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
13 | 2004 and through June 30, 2005, the use in this State of | ||||||
14 | motor vehicles of the second division: (i) with a gross | ||||||
15 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
16 | are subject to the commercial distribution fee imposed | ||||||
17 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
18 | (iii) that are primarily used for commercial purposes. | ||||||
19 | Through June 30, 2005, this
exemption applies to repair and | ||||||
20 | replacement parts added
after the
initial purchase of such | ||||||
21 | a motor vehicle if that motor vehicle is used in a
manner | ||||||
22 | that
would qualify for the rolling stock exemption | ||||||
23 | otherwise provided for in this
Act. For purposes of this | ||||||
24 | paragraph, "used for commercial purposes" means the | ||||||
25 | transportation of persons or property in furtherance of any | ||||||
26 | commercial or industrial enterprise whether for-hire or |
| |||||||
| |||||||
1 | not.
| ||||||
2 | (13) Proceeds from sales to owners, lessors, or
| ||||||
3 | shippers of
tangible personal property that is utilized by | ||||||
4 | interstate carriers for
hire for use as rolling stock | ||||||
5 | moving in interstate commerce
and equipment operated by a | ||||||
6 | telecommunications provider, licensed as a
common carrier | ||||||
7 | by the Federal Communications Commission, which is
| ||||||
8 | permanently installed in or affixed to aircraft moving in | ||||||
9 | interstate commerce.
| ||||||
10 | (14) Machinery and equipment that will be used by the | ||||||
11 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
12 | process of manufacturing or
assembling tangible personal | ||||||
13 | property for wholesale or retail sale or
lease, whether the | ||||||
14 | sale or lease is made directly by the manufacturer or by
| ||||||
15 | some other person, whether the materials used in the | ||||||
16 | process are owned by
the manufacturer or some other person, | ||||||
17 | or whether the sale or lease is made
apart from or as an | ||||||
18 | incident to the seller's engaging in the service
occupation | ||||||
19 | of producing machines, tools, dies, jigs, patterns, | ||||||
20 | gauges, or
other similar items of no commercial value on | ||||||
21 | special order for a particular
purchaser. The exemption | ||||||
22 | provided by this paragraph (14) does not include machinery | ||||||
23 | and equipment used in (i) the generation of electricity for | ||||||
24 | wholesale or retail sale; (ii) the generation or treatment | ||||||
25 | of natural or artificial gas for wholesale or retail sale | ||||||
26 | that is delivered to customers through pipes, pipelines, or |
| |||||||
| |||||||
1 | mains; or (iii) the treatment of water for wholesale or | ||||||
2 | retail sale that is delivered to customers through pipes, | ||||||
3 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
4 | are declaratory of existing law as to the meaning and scope | ||||||
5 | of this exemption. Beginning on July 1, 2017, the exemption | ||||||
6 | provided by this paragraph (14) includes, but is not | ||||||
7 | limited to, graphic arts machinery and equipment, as | ||||||
8 | defined in paragraph (4) of this Section.
| ||||||
9 | (15) Proceeds of mandatory service charges separately | ||||||
10 | stated on
customers' bills for purchase and consumption of | ||||||
11 | food and beverages, to the
extent that the proceeds of the | ||||||
12 | service charge are in fact turned over as
tips or as a | ||||||
13 | substitute for tips to the employees who participate | ||||||
14 | directly
in preparing, serving, hosting or cleaning up the | ||||||
15 | food or beverage function
with respect to which the service | ||||||
16 | charge is imposed.
| ||||||
17 | (16) Tangible personal property sold to a purchaser if | ||||||
18 | the purchaser is exempt from use tax by operation of | ||||||
19 | federal law. This paragraph is exempt from the provisions | ||||||
20 | of Section 2-70.
| ||||||
21 | (17) Tangible personal property sold to a common | ||||||
22 | carrier by rail or
motor that
receives the physical | ||||||
23 | possession of the property in Illinois and that
transports | ||||||
24 | the property, or shares with another common carrier in the
| ||||||
25 | transportation of the property, out of Illinois on a | ||||||
26 | standard uniform bill
of lading showing the seller of the |
| |||||||
| |||||||
1 | property as the shipper or consignor of
the property to a | ||||||
2 | destination outside Illinois, for use outside Illinois.
| ||||||
3 | (18) Legal tender, currency, medallions, or gold or | ||||||
4 | silver coinage
issued by the State of Illinois, the | ||||||
5 | government of the United States of
America, or the | ||||||
6 | government of any foreign country, and bullion.
| ||||||
7 | (19) Until July 1, 2003, oil field exploration, | ||||||
8 | drilling, and production
equipment, including
(i) rigs and | ||||||
9 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
10 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
11 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
12 | storage tanks and flow
lines, (v) any individual | ||||||
13 | replacement part for oil field exploration,
drilling, and | ||||||
14 | production equipment, and (vi) machinery and equipment | ||||||
15 | purchased
for lease; but
excluding motor vehicles required | ||||||
16 | to be registered under the Illinois
Vehicle Code.
| ||||||
17 | (20) Photoprocessing machinery and equipment, | ||||||
18 | including repair and
replacement parts, both new and used, | ||||||
19 | including that manufactured on
special order, certified by | ||||||
20 | the purchaser to be used primarily for
photoprocessing, and | ||||||
21 | including photoprocessing machinery and equipment
| ||||||
22 | purchased for lease.
| ||||||
23 | (21) Until July 1, 2023, coal and aggregate | ||||||
24 | exploration, mining, off-highway hauling,
processing,
| ||||||
25 | maintenance, and reclamation equipment, including
| ||||||
26 | replacement parts and equipment, and including
equipment |
| |||||||
| |||||||
1 | purchased for lease, but excluding motor vehicles required | ||||||
2 | to be
registered under the Illinois Vehicle Code. The | ||||||
3 | changes made to this Section by Public Act 97-767 apply on | ||||||
4 | and after July 1, 2003, but no claim for credit or refund | ||||||
5 | is allowed on or after August 16, 2013 (the effective date | ||||||
6 | of Public Act 98-456)
for such taxes paid during the period | ||||||
7 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
8 | effective date of Public Act 98-456).
| ||||||
9 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
10 | sold to or used by an air carrier,
certified by the carrier | ||||||
11 | to be used for consumption, shipment, or storage
in the | ||||||
12 | conduct of its business as an air common carrier, for a | ||||||
13 | flight
destined for or returning from a location or | ||||||
14 | locations
outside the United States without regard to | ||||||
15 | previous or subsequent domestic
stopovers.
| ||||||
16 | Beginning July 1, 2013, fuel and petroleum products | ||||||
17 | sold to or used by an air carrier, certified by the carrier | ||||||
18 | to be used for consumption, shipment, or storage in the | ||||||
19 | conduct of its business as an air common carrier, for a | ||||||
20 | flight that (i) is engaged in foreign trade or is engaged | ||||||
21 | in trade between the United States and any of its | ||||||
22 | possessions and (ii) transports at least one individual or | ||||||
23 | package for hire from the city of origination to the city | ||||||
24 | of final destination on the same aircraft, without regard | ||||||
25 | to a change in the flight number of that aircraft. | ||||||
26 | (23) A transaction in which the purchase order is |
| |||||||
| |||||||
1 | received by a florist
who is located outside Illinois, but | ||||||
2 | who has a florist located in Illinois
deliver the property | ||||||
3 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
4 | (24) Fuel consumed or used in the operation of ships, | ||||||
5 | barges, or vessels
that are used primarily in or for the | ||||||
6 | transportation of property or the
conveyance of persons for | ||||||
7 | hire on rivers bordering on this State if the
fuel is | ||||||
8 | delivered by the seller to the purchaser's barge, ship, or | ||||||
9 | vessel
while it is afloat upon that bordering river.
| ||||||
10 | (25) Except as provided in item (25-5) of this Section, | ||||||
11 | a
motor vehicle sold in this State to a nonresident even | ||||||
12 | though the
motor vehicle is delivered to the nonresident in | ||||||
13 | this State, if the motor
vehicle is not to be titled in | ||||||
14 | this State, and if a drive-away permit
is issued to the | ||||||
15 | motor vehicle as provided in Section 3-603 of the Illinois
| ||||||
16 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
17 | registration
plates to transfer to the motor vehicle upon | ||||||
18 | returning to his or her home
state. The issuance of the | ||||||
19 | drive-away permit or having
the
out-of-state registration | ||||||
20 | plates to be transferred is prima facie evidence
that the | ||||||
21 | motor vehicle will not be titled in this State.
| ||||||
22 | (25-5) The exemption under item (25) does not apply if | ||||||
23 | the state in which the motor vehicle will be titled does | ||||||
24 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
25 | and delivered in that state to an Illinois resident but | ||||||
26 | titled in Illinois. The tax collected under this Act on the |
| |||||||
| |||||||
1 | sale of a motor vehicle in this State to a resident of | ||||||
2 | another state that does not allow a reciprocal exemption | ||||||
3 | shall be imposed at a rate equal to the state's rate of tax | ||||||
4 | on taxable property in the state in which the purchaser is | ||||||
5 | a resident, except that the tax shall not exceed the tax | ||||||
6 | that would otherwise be imposed under this Act. At the time | ||||||
7 | of the sale, the purchaser shall execute a statement, | ||||||
8 | signed under penalty of perjury, of his or her intent to | ||||||
9 | title the vehicle in the state in which the purchaser is a | ||||||
10 | resident within 30 days after the sale and of the fact of | ||||||
11 | the payment to the State of Illinois of tax in an amount | ||||||
12 | equivalent to the state's rate of tax on taxable property | ||||||
13 | in his or her state of residence and shall submit the | ||||||
14 | statement to the appropriate tax collection agency in his | ||||||
15 | or her state of residence. In addition, the retailer must | ||||||
16 | retain a signed copy of the statement in his or her | ||||||
17 | records. Nothing in this item shall be construed to require | ||||||
18 | the removal of the vehicle from this state following the | ||||||
19 | filing of an intent to title the vehicle in the purchaser's | ||||||
20 | state of residence if the purchaser titles the vehicle in | ||||||
21 | his or her state of residence within 30 days after the date | ||||||
22 | of sale. The tax collected under this Act in accordance | ||||||
23 | with this item (25-5) shall be proportionately distributed | ||||||
24 | as if the tax were collected at the 6.25% general rate | ||||||
25 | imposed under this Act.
| ||||||
26 | (25-7) Beginning on July 1, 2007, no tax is imposed |
| |||||||
| |||||||
1 | under this Act on the sale of an aircraft, as defined in | ||||||
2 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
3 | following conditions are met: | ||||||
4 | (1) the aircraft leaves this State within 15 days | ||||||
5 | after the later of either the issuance of the final | ||||||
6 | billing for the sale of the aircraft, or the authorized | ||||||
7 | approval for return to service, completion of the | ||||||
8 | maintenance record entry, and completion of the test | ||||||
9 | flight and ground test for inspection, as required by | ||||||
10 | 14 C.F.R. 91.407; | ||||||
11 | (2) the aircraft is not based or registered in this | ||||||
12 | State after the sale of the aircraft; and | ||||||
13 | (3) the seller retains in his or her books and | ||||||
14 | records and provides to the Department a signed and | ||||||
15 | dated certification from the purchaser, on a form | ||||||
16 | prescribed by the Department, certifying that the | ||||||
17 | requirements of this item (25-7) are met. The | ||||||
18 | certificate must also include the name and address of | ||||||
19 | the purchaser, the address of the location where the | ||||||
20 | aircraft is to be titled or registered, the address of | ||||||
21 | the primary physical location of the aircraft, and | ||||||
22 | other information that the Department may reasonably | ||||||
23 | require. | ||||||
24 | For purposes of this item (25-7): | ||||||
25 | "Based in this State" means hangared, stored, or | ||||||
26 | otherwise used, excluding post-sale customizations as |
| |||||||
| |||||||
1 | defined in this Section, for 10 or more days in each | ||||||
2 | 12-month period immediately following the date of the sale | ||||||
3 | of the aircraft. | ||||||
4 | "Registered in this State" means an aircraft | ||||||
5 | registered with the Department of Transportation, | ||||||
6 | Aeronautics Division, or titled or registered with the | ||||||
7 | Federal Aviation Administration to an address located in | ||||||
8 | this State. | ||||||
9 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
10 | Section 2-70.
| ||||||
11 | (26) Semen used for artificial insemination of | ||||||
12 | livestock for direct
agricultural production.
| ||||||
13 | (27) Horses, or interests in horses, registered with | ||||||
14 | and meeting the
requirements of any of the
Arabian Horse | ||||||
15 | Club Registry of America, Appaloosa Horse Club, American | ||||||
16 | Quarter
Horse Association, United States
Trotting | ||||||
17 | Association, or Jockey Club, as appropriate, used for
| ||||||
18 | purposes of breeding or racing for prizes. This item (27) | ||||||
19 | is exempt from the provisions of Section 2-70, and the | ||||||
20 | exemption provided for under this item (27) applies for all | ||||||
21 | periods beginning May 30, 1995, but no claim for credit or | ||||||
22 | refund is allowed on or after January 1, 2008 (the | ||||||
23 | effective date of Public Act 95-88)
for such taxes paid | ||||||
24 | during the period beginning May 30, 2000 and ending on | ||||||
25 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
26 | (28) Computers and communications equipment utilized |
| |||||||
| |||||||
1 | for any
hospital
purpose
and equipment used in the | ||||||
2 | diagnosis,
analysis, or treatment of hospital patients | ||||||
3 | sold to a lessor who leases the
equipment, under a lease of | ||||||
4 | one year or longer executed or in effect at the
time of the | ||||||
5 | purchase, to a
hospital
that has been issued an active tax | ||||||
6 | exemption identification number by the
Department under | ||||||
7 | Section 1g of this Act.
| ||||||
8 | (29) Personal property sold to a lessor who leases the
| ||||||
9 | property, under a
lease of one year or longer executed or | ||||||
10 | in effect at the time of the purchase,
to a governmental | ||||||
11 | body
that has been issued an active tax exemption | ||||||
12 | identification number by the
Department under Section 1g of | ||||||
13 | this Act.
| ||||||
14 | (30) Beginning with taxable years ending on or after | ||||||
15 | December
31, 1995
and
ending with taxable years ending on | ||||||
16 | or before December 31, 2004,
personal property that is
| ||||||
17 | donated for disaster relief to be used in a State or | ||||||
18 | federally declared
disaster area in Illinois or bordering | ||||||
19 | Illinois by a manufacturer or retailer
that is registered | ||||||
20 | in this State to a corporation, society, association,
| ||||||
21 | foundation, or institution that has been issued a sales tax | ||||||
22 | exemption
identification number by the Department that | ||||||
23 | assists victims of the disaster
who reside within the | ||||||
24 | declared disaster area.
| ||||||
25 | (31) Beginning with taxable years ending on or after | ||||||
26 | December
31, 1995 and
ending with taxable years ending on |
| |||||||
| |||||||
1 | or before December 31, 2004, personal
property that is used | ||||||
2 | in the performance of infrastructure repairs in this
State, | ||||||
3 | including but not limited to municipal roads and streets, | ||||||
4 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
5 | water and sewer line extensions,
water distribution and | ||||||
6 | purification facilities, storm water drainage and
| ||||||
7 | retention facilities, and sewage treatment facilities, | ||||||
8 | resulting from a State
or federally declared disaster in | ||||||
9 | Illinois or bordering Illinois when such
repairs are | ||||||
10 | initiated on facilities located in the declared disaster | ||||||
11 | area
within 6 months after the disaster.
| ||||||
12 | (32) Beginning July 1, 1999, game or game birds sold at | ||||||
13 | a "game breeding
and
hunting preserve area" as that term is | ||||||
14 | used
in the
Wildlife Code. This paragraph is exempt from | ||||||
15 | the provisions
of
Section 2-70.
| ||||||
16 | (33) A motor vehicle, as that term is defined in | ||||||
17 | Section 1-146
of the
Illinois Vehicle Code, that is donated | ||||||
18 | to a corporation, limited liability
company, society, | ||||||
19 | association, foundation, or institution that is determined | ||||||
20 | by
the Department to be organized and operated exclusively | ||||||
21 | for educational
purposes. For purposes of this exemption, | ||||||
22 | "a corporation, limited liability
company, society, | ||||||
23 | association, foundation, or institution organized and
| ||||||
24 | operated
exclusively for educational purposes" means all | ||||||
25 | tax-supported public schools,
private schools that offer | ||||||
26 | systematic instruction in useful branches of
learning by |
| |||||||
| |||||||
1 | methods common to public schools and that compare favorably | ||||||
2 | in
their scope and intensity with the course of study | ||||||
3 | presented in tax-supported
schools, and vocational or | ||||||
4 | technical schools or institutes organized and
operated | ||||||
5 | exclusively to provide a course of study of not less than 6 | ||||||
6 | weeks
duration and designed to prepare individuals to | ||||||
7 | follow a trade or to pursue a
manual, technical, | ||||||
8 | mechanical, industrial, business, or commercial
| ||||||
9 | occupation.
| ||||||
10 | (34) Beginning January 1, 2000, personal property, | ||||||
11 | including food, purchased
through fundraising events for | ||||||
12 | the benefit of a public or private elementary or
secondary | ||||||
13 | school, a group of those schools, or one or more school | ||||||
14 | districts if
the events are sponsored by an entity | ||||||
15 | recognized by the school district that
consists primarily | ||||||
16 | of volunteers and includes parents and teachers of the
| ||||||
17 | school children. This paragraph does not apply to | ||||||
18 | fundraising events (i) for
the benefit of private home | ||||||
19 | instruction or (ii) for which the fundraising
entity | ||||||
20 | purchases the personal property sold at the events from | ||||||
21 | another
individual or entity that sold the property for the | ||||||
22 | purpose of resale by the
fundraising entity and that | ||||||
23 | profits from the sale to the fundraising entity.
This | ||||||
24 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
25 | (35) Beginning January 1, 2000 and through December 31, | ||||||
26 | 2001, new or used
automatic vending machines that prepare |
| |||||||
| |||||||
1 | and serve hot food and beverages,
including coffee, soup, | ||||||
2 | and other items, and replacement parts for these
machines. | ||||||
3 | Beginning January 1, 2002 and through June 30, 2003, | ||||||
4 | machines
and parts for machines used in
commercial, | ||||||
5 | coin-operated amusement and vending business if a use or | ||||||
6 | occupation
tax is paid on the gross receipts derived from | ||||||
7 | the use of the commercial,
coin-operated amusement and | ||||||
8 | vending machines. This paragraph is exempt from
the | ||||||
9 | provisions of Section 2-70.
| ||||||
10 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
11 | 2016, food for human consumption that is to be consumed off
| ||||||
12 | the premises where it is sold (other than alcoholic | ||||||
13 | beverages, soft drinks,
and food that has been prepared for | ||||||
14 | immediate consumption) and prescription
and | ||||||
15 | nonprescription medicines, drugs, medical appliances, and | ||||||
16 | insulin, urine
testing materials, syringes, and needles | ||||||
17 | used by diabetics, for human use, when
purchased for use by | ||||||
18 | a person receiving medical assistance under Article V of
| ||||||
19 | the Illinois Public Aid Code who resides in a licensed | ||||||
20 | long-term care facility,
as defined in the Nursing Home | ||||||
21 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
22 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
23 | Mental Health Rehabilitation Act of 2013.
| ||||||
24 | (36) Beginning August 2, 2001, computers and | ||||||
25 | communications equipment
utilized for any hospital purpose | ||||||
26 | and equipment used in the diagnosis,
analysis, or treatment |
| |||||||
| |||||||
1 | of hospital patients sold to a lessor who leases the
| ||||||
2 | equipment, under a lease of one year or longer executed or | ||||||
3 | in effect at the
time of the purchase, to a hospital that | ||||||
4 | has been issued an active tax
exemption identification | ||||||
5 | number by the Department under Section 1g of this Act.
This | ||||||
6 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
7 | (37) Beginning August 2, 2001, personal property sold | ||||||
8 | to a lessor who
leases the property, under a lease of one | ||||||
9 | year or longer executed or in effect
at the time of the | ||||||
10 | purchase, to a governmental body that has been issued an
| ||||||
11 | active tax exemption identification number by the | ||||||
12 | Department under Section 1g
of this Act. This paragraph is | ||||||
13 | exempt from the provisions of Section 2-70.
| ||||||
14 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
15 | 2016, tangible personal property purchased
from an | ||||||
16 | Illinois retailer by a taxpayer engaged in centralized | ||||||
17 | purchasing
activities in Illinois who will, upon receipt of | ||||||
18 | the property in Illinois,
temporarily store the property in | ||||||
19 | Illinois (i) for the purpose of subsequently
transporting | ||||||
20 | it outside this State for use or consumption thereafter | ||||||
21 | solely
outside this State or (ii) for the purpose of being | ||||||
22 | processed, fabricated, or
manufactured into, attached to, | ||||||
23 | or incorporated into other tangible personal
property to be | ||||||
24 | transported outside this State and thereafter used or | ||||||
25 | consumed
solely outside this State. The Director of Revenue | ||||||
26 | shall, pursuant to rules
adopted in accordance with the |
| |||||||
| |||||||
1 | Illinois Administrative Procedure Act, issue a
permit to | ||||||
2 | any taxpayer in good standing with the Department who is | ||||||
3 | eligible for
the exemption under this paragraph (38). The | ||||||
4 | permit issued under
this paragraph (38) shall authorize the | ||||||
5 | holder, to the extent and
in the manner specified in the | ||||||
6 | rules adopted under this Act, to purchase
tangible personal | ||||||
7 | property from a retailer exempt from the taxes imposed by
| ||||||
8 | this Act. Taxpayers shall maintain all necessary books and | ||||||
9 | records to
substantiate the use and consumption of all such | ||||||
10 | tangible personal property
outside of the State of | ||||||
11 | Illinois.
| ||||||
12 | (39) Beginning January 1, 2008, tangible personal | ||||||
13 | property used in the construction or maintenance of a | ||||||
14 | community water supply, as defined under Section 3.145 of | ||||||
15 | the Environmental Protection Act, that is operated by a | ||||||
16 | not-for-profit corporation that holds a valid water supply | ||||||
17 | permit issued under Title IV of the Environmental | ||||||
18 | Protection Act. This paragraph is exempt from the | ||||||
19 | provisions of Section 2-70.
| ||||||
20 | (40) Beginning January 1, 2010 and continuing through | ||||||
21 | December 31, 2024 , materials, parts, equipment, | ||||||
22 | components, and furnishings incorporated into or upon an | ||||||
23 | aircraft as part of the modification, refurbishment, | ||||||
24 | completion, replacement, repair, or maintenance of the | ||||||
25 | aircraft. This exemption includes consumable supplies used | ||||||
26 | in the modification, refurbishment, completion, |
| |||||||
| |||||||
1 | replacement, repair, and maintenance of aircraft, but | ||||||
2 | excludes any materials, parts, equipment, components, and | ||||||
3 | consumable supplies used in the modification, replacement, | ||||||
4 | repair, and maintenance of aircraft engines or power | ||||||
5 | plants, whether such engines or power plants are installed | ||||||
6 | or uninstalled upon any such aircraft. "Consumable | ||||||
7 | supplies" include, but are not limited to, adhesive, tape, | ||||||
8 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
9 | latex gloves, and protective films. This exemption applies | ||||||
10 | only to the sale of qualifying tangible personal property | ||||||
11 | to persons who modify, refurbish, complete, replace, or | ||||||
12 | maintain an aircraft and who (i) hold an Air Agency | ||||||
13 | Certificate and are empowered to operate an approved repair | ||||||
14 | station by the Federal Aviation Administration, (ii) have a | ||||||
15 | Class IV Rating, and (iii) conduct operations in accordance | ||||||
16 | with Part 145 of the Federal Aviation Regulations. The | ||||||
17 | exemption does not include aircraft operated by a | ||||||
18 | commercial air carrier providing scheduled passenger air | ||||||
19 | service pursuant to authority issued under Part 121 or Part | ||||||
20 | 129 of the Federal Aviation Regulations. The changes made | ||||||
21 | to this paragraph (40) by Public Act 98-534 are declarative | ||||||
22 | of existing law. It is the intent of the General Assembly | ||||||
23 | that the exemption under this paragraph (40) applies | ||||||
24 | continuously from January 1, 2010 through December 31, | ||||||
25 | 2024; however, no claim for credit or refund is allowed for | ||||||
26 | taxes paid as a result of the disallowance of this |
| |||||||
| |||||||
1 | exemption on or after January 1, 2015 and prior to the | ||||||
2 | effective date of this amendatory Act of the 101st General | ||||||
3 | Assembly. | ||||||
4 | (41) Tangible personal property sold to a | ||||||
5 | public-facilities corporation, as described in Section | ||||||
6 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
7 | constructing or furnishing a municipal convention hall, | ||||||
8 | but only if the legal title to the municipal convention | ||||||
9 | hall is transferred to the municipality without any further | ||||||
10 | consideration by or on behalf of the municipality at the | ||||||
11 | time of the completion of the municipal convention hall or | ||||||
12 | upon the retirement or redemption of any bonds or other | ||||||
13 | debt instruments issued by the public-facilities | ||||||
14 | corporation in connection with the development of the | ||||||
15 | municipal convention hall. This exemption includes | ||||||
16 | existing public-facilities corporations as provided in | ||||||
17 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
18 | paragraph is exempt from the provisions of Section 2-70. | ||||||
19 | (42) Beginning January 1, 2017, menstrual pads, | ||||||
20 | tampons, and menstrual cups. | ||||||
21 | (43) Merchandise that is subject to the Rental Purchase | ||||||
22 | Agreement Occupation and Use Tax. The purchaser must | ||||||
23 | certify that the item is purchased to be rented subject to | ||||||
24 | a rental purchase agreement, as defined in the Rental | ||||||
25 | Purchase Agreement Act, and provide proof of registration | ||||||
26 | under the Rental Purchase Agreement Occupation and Use Tax |
| |||||||
| |||||||
1 | Act. This paragraph is exempt from the provisions of | ||||||
2 | Section 2-70. | ||||||
3 | (44) Qualified tangible personal property used in the | ||||||
4 | construction or operation of a data center that has been | ||||||
5 | granted a certificate of exemption by the Department of | ||||||
6 | Commerce and Economic Opportunity, whether that tangible | ||||||
7 | personal property is purchased by the owner, operator, or | ||||||
8 | tenant of the data center or by a contractor or | ||||||
9 | subcontractor of the owner, operator, or tenant. Data | ||||||
10 | centers that would have qualified for a certificate of | ||||||
11 | exemption prior to January 1, 2020 had this amendatory Act | ||||||
12 | of the 101st General Assembly been in effect, may apply for | ||||||
13 | and obtain an exemption for subsequent purchases of | ||||||
14 | computer equipment or enabling software purchased or | ||||||
15 | leased to upgrade, supplement, or replace computer | ||||||
16 | equipment or enabling software purchased or leased in the | ||||||
17 | original investment that would have qualified. | ||||||
18 | The Department of Commerce and Economic Opportunity | ||||||
19 | shall grant a certificate of exemption under this item (44) | ||||||
20 | to qualified data centers as defined by Section 605-1025 of | ||||||
21 | the Department of Commerce and Economic Opportunity Law of | ||||||
22 | the
Civil Administrative Code of Illinois. | ||||||
23 | For the purposes of this item (44): | ||||||
24 | "Data center" means a building or a series of | ||||||
25 | buildings rehabilitated or constructed to house | ||||||
26 | working servers in one physical location or multiple |
| |||||||
| |||||||
1 | sites within the State of Illinois. | ||||||
2 | "Qualified tangible personal property" means: | ||||||
3 | electrical systems and equipment; climate control and | ||||||
4 | chilling equipment and systems; mechanical systems and | ||||||
5 | equipment; monitoring and secure systems; emergency | ||||||
6 | generators; hardware; computers; servers; data storage | ||||||
7 | devices; network connectivity equipment; racks; | ||||||
8 | cabinets; telecommunications cabling infrastructure; | ||||||
9 | raised floor systems; peripheral components or | ||||||
10 | systems; software; mechanical, electrical, or plumbing | ||||||
11 | systems; battery systems; cooling systems and towers; | ||||||
12 | temperature control systems; other cabling; and other | ||||||
13 | data center infrastructure equipment and systems | ||||||
14 | necessary to operate qualified tangible personal | ||||||
15 | property, including fixtures; and component parts of | ||||||
16 | any of the foregoing, including installation, | ||||||
17 | maintenance, repair, refurbishment, and replacement of | ||||||
18 | qualified tangible personal property to generate, | ||||||
19 | transform, transmit, distribute, or manage electricity | ||||||
20 | necessary to operate qualified tangible personal | ||||||
21 | property; and all other tangible personal property | ||||||
22 | that is essential to the operations of a computer data | ||||||
23 | center. The term "qualified tangible personal | ||||||
24 | property" also includes building materials physically | ||||||
25 | incorporated in to the qualifying data center. To | ||||||
26 | document the exemption allowed under this Section, the |
| |||||||
| |||||||
1 | retailer must obtain from the purchaser a copy of the | ||||||
2 | certificate of eligibility issued by the Department of | ||||||
3 | Commerce and Economic Opportunity. | ||||||
4 | This item (44) is exempt from the provisions of Section | ||||||
5 | 2-70. | ||||||
6 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
7 | 100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. | ||||||
8 | 8-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, | ||||||
9 | eff. 7-12-19.)
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.".
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