101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1591

 

Introduced 2/15/2019, by Sen. Elgie R. Sims, Jr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-810 new
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5
35 ILCS 640/2-4

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Revenue. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois to add provisions concerning those certificates of exemption. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1591LRB101 08762 HLH 53849 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 3. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-810 as follows:
 
7    (20 ILCS 2505/2505-810 new)
8    Sec. 2505-810. Data center investment.
9    (a) The Department shall issue certificates of exemption
10from the Retailers' Occupation Tax Act, the Use Tax Act, the
11Service Use Tax Act, and the Service Occupation Tax Act, all
12locally-imposed retailers' occupation taxes administered and
13collected by the Department, the Chicago non-titled Use Tax,
14and the Electricity Excise Tax Act to qualifying Illinois data
15centers.
16    (b) For purposes of this Section:
17        "Data center" means a building or a series of buildings
18    that is rehabilitated or constructed to house working
19    servers in one physical location or several sites.
20        "Qualifying Illinois data center" means a new or
21    existing data center that:
22            (1) is located in the State of Illinois;
23            (2) in the case of an existing data center, made a

 

 

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1        capital investment of at least $250,000,000
2        collectively by the data center operator and the
3        tenants of all of its data centers over the 60-month
4        period immediately prior to January 1, 2020 or
5        committed to make a capital investment of at least
6        $250,000,000 over a 60-month period commencing before
7        January 1, 2020 and ending after January 1, 2020; or
8            (3) in the case of a new data center, makes a
9        capital investment of at least $250,000,000 over a
10        60-month period; and
11            (4) in the case of both existing and new data
12        centers, results in the creation of at least 20
13        full-time or full-time equivalent new jobs over a
14        period of 60 months by the data center operator and the
15        tenants of the data center, collectively, associated
16        with the operation or maintenance of the data center;
17        those jobs must have a total compensation equal to or
18        greater than 120% of the median wage paid to full-time
19        employees in the county where the data center is
20        located, as determined by the U.S. Bureau of Labor
21        Statistics; and
22            (5) is carbon neutral or attains certification
23        under one or more of the following green building
24        standards:
25                (A) BREEAM for New Construction or BREEAM
26            In-Use;

 

 

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1                (B) ENERGY STAR;
2                (C) Envision;
3                (D) ISO 50001-energy management;
4                (E) LEED for Building Design and Construction
5            or LEED for Operations and Maintenance;
6                (F) Green Globes for New Construction or Green
7            Globes for Existing Buildings;
8                (G) UL 3223; or
9                (H) an equivalent program approved by the
10            Department of Commerce and Economic Opportunity.
11        "Full-time equivalent job" means a job in which the new
12    employee works for the owner, operator, contractor, or
13    tenant of a data center or for a corporation under contract
14    with the owner, operator or tenant of a data center at a
15    rate of at least 35 hours per week. An owner, operator or
16    tenant who employs labor or services at a specific site or
17    facility under contract with another may declare one
18    full-time, permanent job for every 1,820-man hours worked
19    per year under that contract. Vacations, paid holidays, and
20    sick time are included in this computation. Overtime is not
21    considered a part of regular hours.
22        "Qualified tangible personal property" means:
23    electrical systems and equipment; climate control and
24    chilling equipment and systems; mechanical systems and
25    equipment; monitoring and secure systems; emergency
26    generators; hardware; computers; servers; data storage

 

 

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1    devices; network connectivity equipment; racks; cabinets;
2    telecommunications cabling infrastructure; raised floor
3    systems; peripheral components or systems; software;
4    mechanical, electrical, or plumbing systems; battery
5    systems; cooling systems and towers; temperature control
6    systems; other cabling; and other data center
7    infrastructure equipment and systems necessary to operate
8    qualified tangible personal property, including fixtures;
9    and component parts of any of the foregoing, including
10    installation, maintenance, repair, refurbishment, and
11    replacement of qualified tangible personal property to
12    generate, transform, transmit, distribute, or manage
13    electricity necessary to operate qualified tangible
14    personal property; and all other tangible personal
15    property that is essential to the operations of a computer
16    data center. The term "qualified tangible personal
17    property" also includes building materials physically
18    incorporated in to the qualifying data center. To document
19    the exemption allowed under this Section, the retailer must
20    obtain from the purchaser a copy of the certificate of
21    eligibility issued by the Department.
22    (c) New and existing data centers seeking a certificate of
23exemption for new or existing facilities shall apply to the
24Department in the manner specified by the Department. The
25Department and any data center seeking the exemption, including
26a data center operator on behalf of itself and its tenants,

 

 

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1must enter into a memorandum of understanding that at a minimum
2provides:
3        (1) the details for determining the amount of capital
4    investment to be made;
5        (2) the number of new jobs created;
6        (3) the timeline for achieving the capital investment
7    and new job goals;
8        (4) the repayment obligation should those goals not be
9    achieved and any conditions under which repayment by the
10    qualifying data center or data center tenant claiming the
11    exemption will be required; and
12        (5) other provisions as deemed necessary.
13    (d) Beginning July 1, 2021, and each year thereafter, the
14Department shall annually report to the Governor and the
15General Assembly on the outcomes and effectiveness of this
16amendatory Act of the 101st General Assembly that shall include
17the following:
18        (1) the name of each recipient business;
19        (2) the location of the project;
20        (3) the estimated value of the credit;
21        (4) the number of new jobs and, if applicable, retained
22    jobs pledged as a result of the project; and
23        (5) whether or not the project is located in an
24    underserved area.
 
25    Section 5. The Use Tax Act is amended by changing Section

 

 

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13-5 as follows:
 
2    (35 ILCS 105/3-5)
3    Sec. 3-5. Exemptions. Use of the following tangible
4personal property is exempt from the tax imposed by this Act:
5    (1) Personal property purchased from a corporation,
6society, association, foundation, institution, or
7organization, other than a limited liability company, that is
8organized and operated as a not-for-profit service enterprise
9for the benefit of persons 65 years of age or older if the
10personal property was not purchased by the enterprise for the
11purpose of resale by the enterprise.
12    (2) Personal property purchased by a not-for-profit
13Illinois county fair association for use in conducting,
14operating, or promoting the county fair.
15    (3) Personal property purchased by a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after July 1, 2001 (the

 

 

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1effective date of Public Act 92-35), however, an entity
2otherwise eligible for this exemption shall not make tax-free
3purchases unless it has an active identification number issued
4by the Department.
5    (4) Personal property purchased by a governmental body, by
6a corporation, society, association, foundation, or
7institution organized and operated exclusively for charitable,
8religious, or educational purposes, or by a not-for-profit
9corporation, society, association, foundation, institution, or
10organization that has no compensated officers or employees and
11that is organized and operated primarily for the recreation of
12persons 55 years of age or older. A limited liability company
13may qualify for the exemption under this paragraph only if the
14limited liability company is organized and operated
15exclusively for educational purposes. On and after July 1,
161987, however, no entity otherwise eligible for this exemption
17shall make tax-free purchases unless it has an active exemption
18identification number issued by the Department.
19    (5) Until July 1, 2003, a passenger car that is a
20replacement vehicle to the extent that the purchase price of
21the car is subject to the Replacement Vehicle Tax.
22    (6) Until July 1, 2003 and beginning again on September 1,
232004 through August 30, 2014, graphic arts machinery and
24equipment, including repair and replacement parts, both new and
25used, and including that manufactured on special order,
26certified by the purchaser to be used primarily for graphic

 

 

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1arts production, and including machinery and equipment
2purchased for lease. Equipment includes chemicals or chemicals
3acting as catalysts but only if the chemicals or chemicals
4acting as catalysts effect a direct and immediate change upon a
5graphic arts product. Beginning on July 1, 2017, graphic arts
6machinery and equipment is included in the manufacturing and
7assembling machinery and equipment exemption under paragraph
8(18).
9    (7) Farm chemicals.
10    (8) Legal tender, currency, medallions, or gold or silver
11coinage issued by the State of Illinois, the government of the
12United States of America, or the government of any foreign
13country, and bullion.
14    (9) Personal property purchased from a teacher-sponsored
15student organization affiliated with an elementary or
16secondary school located in Illinois.
17    (10) A motor vehicle that is used for automobile renting,
18as defined in the Automobile Renting Occupation and Use Tax
19Act.
20    (11) Farm machinery and equipment, both new and used,
21including that manufactured on special order, certified by the
22purchaser to be used primarily for production agriculture or
23State or federal agricultural programs, including individual
24replacement parts for the machinery and equipment, including
25machinery and equipment purchased for lease, and including
26implements of husbandry defined in Section 1-130 of the

 

 

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

 

 

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1agricultural chemicals. This item (11) is exempt from the
2provisions of Section 3-90.
3    (12) Until June 30, 2013, fuel and petroleum products sold
4to or used by an air common carrier, certified by the carrier
5to be used for consumption, shipment, or storage in the conduct
6of its business as an air common carrier, for a flight destined
7for or returning from a location or locations outside the
8United States without regard to previous or subsequent domestic
9stopovers.
10    Beginning July 1, 2013, fuel and petroleum products sold to
11or used by an air carrier, certified by the carrier to be used
12for consumption, shipment, or storage in the conduct of its
13business as an air common carrier, for a flight that (i) is
14engaged in foreign trade or is engaged in trade between the
15United States and any of its possessions and (ii) transports at
16least one individual or package for hire from the city of
17origination to the city of final destination on the same
18aircraft, without regard to a change in the flight number of
19that aircraft.
20    (13) Proceeds of mandatory service charges separately
21stated on customers' bills for the purchase and consumption of
22food and beverages purchased at retail from a retailer, to the
23extent that the proceeds of the service charge are in fact
24turned over as tips or as a substitute for tips to the
25employees who participate directly in preparing, serving,
26hosting or cleaning up the food or beverage function with

 

 

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1respect to which the service charge is imposed.
2    (14) Until July 1, 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of rigs,
4rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
5tubular goods, including casing and drill strings, (iii) pumps
6and pump-jack units, (iv) storage tanks and flow lines, (v) any
7individual replacement part for oil field exploration,
8drilling, and production equipment, and (vi) machinery and
9equipment purchased for lease; but excluding motor vehicles
10required to be registered under the Illinois Vehicle Code.
11    (15) Photoprocessing machinery and equipment, including
12repair and replacement parts, both new and used, including that
13manufactured on special order, certified by the purchaser to be
14used primarily for photoprocessing, and including
15photoprocessing machinery and equipment purchased for lease.
16    (16) Until July 1, 2023, coal and aggregate exploration,
17mining, off-highway hauling, processing, maintenance, and
18reclamation equipment, including replacement parts and
19equipment, and including equipment purchased for lease, but
20excluding motor vehicles required to be registered under the
21Illinois Vehicle Code. The changes made to this Section by
22Public Act 97-767 apply on and after July 1, 2003, but no claim
23for credit or refund is allowed on or after August 16, 2013
24(the effective date of Public Act 98-456) for such taxes paid
25during the period beginning July 1, 2003 and ending on August
2616, 2013 (the effective date of Public Act 98-456).

 

 

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1    (17) Until July 1, 2003, distillation machinery and
2equipment, sold as a unit or kit, assembled or installed by the
3retailer, certified by the user to be used only for the
4production of ethyl alcohol that will be used for consumption
5as motor fuel or as a component of motor fuel for the personal
6use of the user, and not subject to sale or resale.
7    (18) Manufacturing and assembling machinery and equipment
8used primarily in the process of manufacturing or assembling
9tangible personal property for wholesale or retail sale or
10lease, whether that sale or lease is made directly by the
11manufacturer or by some other person, whether the materials
12used in the process are owned by the manufacturer or some other
13person, or whether that sale or lease is made apart from or as
14an incident to the seller's engaging in the service occupation
15of producing machines, tools, dies, jigs, patterns, gauges, or
16other similar items of no commercial value on special order for
17a particular purchaser. The exemption provided by this
18paragraph (18) does not include machinery and equipment used in
19(i) the generation of electricity for wholesale or retail sale;
20(ii) the generation or treatment of natural or artificial gas
21for wholesale or retail sale that is delivered to customers
22through pipes, pipelines, or mains; or (iii) the treatment of
23water for wholesale or retail sale that is delivered to
24customers through pipes, pipelines, or mains. The provisions of
25Public Act 98-583 are declaratory of existing law as to the
26meaning and scope of this exemption. Beginning on July 1, 2017,

 

 

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1the exemption provided by this paragraph (18) includes, but is
2not limited to, graphic arts machinery and equipment, as
3defined in paragraph (6) of this Section.
4    (19) Personal property delivered to a purchaser or
5purchaser's donee inside Illinois when the purchase order for
6that personal property was received by a florist located
7outside Illinois who has a florist located inside Illinois
8deliver the personal property.
9    (20) Semen used for artificial insemination of livestock
10for direct agricultural production.
11    (21) Horses, or interests in horses, registered with and
12meeting the requirements of any of the Arabian Horse Club
13Registry of America, Appaloosa Horse Club, American Quarter
14Horse Association, United States Trotting Association, or
15Jockey Club, as appropriate, used for purposes of breeding or
16racing for prizes. This item (21) is exempt from the provisions
17of Section 3-90, and the exemption provided for under this item
18(21) applies for all periods beginning May 30, 1995, but no
19claim for credit or refund is allowed on or after January 1,
202008 for such taxes paid during the period beginning May 30,
212000 and ending on January 1, 2008.
22    (22) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients purchased by a
25lessor who leases the equipment, under a lease of one year or
26longer executed or in effect at the time the lessor would

 

 

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

 

 

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

 

 

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1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9    (26) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-90.
13    (27) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the Department
17to be organized and operated exclusively for educational
18purposes. For purposes of this exemption, "a corporation,
19limited liability company, society, association, foundation,
20or institution organized and operated exclusively for
21educational purposes" means all tax-supported public schools,
22private schools that offer systematic instruction in useful
23branches of learning by methods common to public schools and
24that compare favorably in their scope and intensity with the
25course of study presented in tax-supported schools, and
26vocational or technical schools or institutes organized and

 

 

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1operated exclusively to provide a course of study of not less
2than 6 weeks duration and designed to prepare individuals to
3follow a trade or to pursue a manual, technical, mechanical,
4industrial, business, or commercial occupation.
5    (28) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-90.
19    (29) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and other
22items, and replacement parts for these machines. Beginning
23January 1, 2002 and through June 30, 2003, machines and parts
24for machines used in commercial, coin-operated amusement and
25vending business if a use or occupation tax is paid on the
26gross receipts derived from the use of the commercial,

 

 

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1coin-operated amusement and vending machines. This paragraph
2is exempt from the provisions of Section 3-90.
3    (30) Beginning January 1, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (31) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), computers and communications equipment
18utilized for any hospital purpose and equipment used in the
19diagnosis, analysis, or treatment of hospital patients
20purchased by a lessor who leases the equipment, under a lease
21of one year or longer executed or in effect at the time the
22lessor would otherwise be subject to the tax imposed by this
23Act, to a hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. If the equipment is leased in a
26manner that does not qualify for this exemption or is used in

 

 

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

 

 

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1time the nonqualifying use occurs. No lessor shall collect or
2attempt to collect an amount (however designated) that purports
3to reimburse that lessor for the tax imposed by this Act or the
4Service Use Tax Act, as the case may be, if the tax has not been
5paid by the lessor. If a lessor improperly collects any such
6amount from the lessee, the lessee shall have a legal right to
7claim a refund of that amount from the lessor. If, however,
8that amount is not refunded to the lessee for any reason, the
9lessor is liable to pay that amount to the Department. This
10paragraph is exempt from the provisions of Section 3-90.
11    (33) On and after July 1, 2003 and through June 30, 2004,
12the use in this State of motor vehicles of the second division
13with a gross vehicle weight in excess of 8,000 pounds and that
14are subject to the commercial distribution fee imposed under
15Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
161, 2004 and through June 30, 2005, the use in this State of
17motor vehicles of the second division: (i) with a gross vehicle
18weight rating in excess of 8,000 pounds; (ii) that are subject
19to the commercial distribution fee imposed under Section
203-815.1 of the Illinois Vehicle Code; and (iii) that are
21primarily used for commercial purposes. Through June 30, 2005,
22this exemption applies to repair and replacement parts added
23after the initial purchase of such a motor vehicle if that
24motor vehicle is used in a manner that would qualify for the
25rolling stock exemption otherwise provided for in this Act. For
26purposes of this paragraph, the term "used for commercial

 

 

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1purposes" means the transportation of persons or property in
2furtherance of any commercial or industrial enterprise,
3whether for-hire or not.
4    (34) Beginning January 1, 2008, tangible personal property
5used in the construction or maintenance of a community water
6supply, as defined under Section 3.145 of the Environmental
7Protection Act, that is operated by a not-for-profit
8corporation that holds a valid water supply permit issued under
9Title IV of the Environmental Protection Act. This paragraph is
10exempt from the provisions of Section 3-90.
11    (35) Beginning January 1, 2010, materials, parts,
12equipment, components, and furnishings incorporated into or
13upon an aircraft as part of the modification, refurbishment,
14completion, replacement, repair, or maintenance of the
15aircraft. This exemption includes consumable supplies used in
16the modification, refurbishment, completion, replacement,
17repair, and maintenance of aircraft, but excludes any
18materials, parts, equipment, components, and consumable
19supplies used in the modification, replacement, repair, and
20maintenance of aircraft engines or power plants, whether such
21engines or power plants are installed or uninstalled upon any
22such aircraft. "Consumable supplies" include, but are not
23limited to, adhesive, tape, sandpaper, general purpose
24lubricants, cleaning solution, latex gloves, and protective
25films. This exemption applies only to the use of qualifying
26tangible personal property by persons who modify, refurbish,

 

 

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1complete, repair, replace, or maintain aircraft and who (i)
2hold an Air Agency Certificate and are empowered to operate an
3approved repair station by the Federal Aviation
4Administration, (ii) have a Class IV Rating, and (iii) conduct
5operations in accordance with Part 145 of the Federal Aviation
6Regulations. The exemption does not include aircraft operated
7by a commercial air carrier providing scheduled passenger air
8service pursuant to authority issued under Part 121 or Part 129
9of the Federal Aviation Regulations. The changes made to this
10paragraph (35) by Public Act 98-534 are declarative of existing
11law.
12    (36) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 3-90.
26    (37) Beginning January 1, 2017, menstrual pads, tampons,

 

 

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1and menstrual cups.
2    (38) Merchandise that is subject to the Rental Purchase
3Agreement Occupation and Use Tax. The purchaser must certify
4that the item is purchased to be rented subject to a rental
5purchase agreement, as defined in the Rental Purchase Agreement
6Act, and provide proof of registration under the Rental
7Purchase Agreement Occupation and Use Tax Act. This paragraph
8is exempt from the provisions of Section 3-90.
9    (39) Tangible personal property purchased by a purchaser
10who is exempt from the tax imposed by this Act by operation of
11federal law. This paragraph is exempt from the provisions of
12Section 3-90.
13    (40) Beginning on January 1, 2020, qualified tangible
14personal property used in the construction or operation of a
15data center that has been granted a certificate of exemption by
16the Department, whether that tangible personal property is
17purchased by the owner, operator, or tenant of the data center
18or by a contractor or subcontractor of the owner, operator, or
19tenant. Data centers that would have qualified for a
20certificate of exemption prior to January 1, 2020 had this
21amendatory Act of the 101st General Assembly been in effect,
22may apply for and obtain an exemption for subsequent purchases
23of computer equipment or enabling software purchased or leased
24to upgrade, supplement, or replace computer equipment or
25enabling software purchased or leased in the original
26investment that would have qualified.

 

 

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1    The Department shall grant a certificate of exemption under
2this item (40) to qualified data centers as defined by
3subsection (b) of Section 2505-810 of the Department of Revenue
4Law of the Civil Administrative Code of Illinois.
5    For the purposes of this item (40):
6        "Data center" means a building or a series of buildings
7    rehabilitated or constructed to house working servers in
8    one physical location or multiple sites within the State of
9    Illinois.
10        "Qualified tangible personal property" means:
11    electrical systems and equipment; climate control and
12    chilling equipment and systems; mechanical systems and
13    equipment; monitoring and secure systems; emergency
14    generators; hardware; computers; servers; data storage
15    devices; network connectivity equipment; racks; cabinets;
16    telecommunications cabling infrastructure; raised floor
17    systems; peripheral components or systems; software;
18    mechanical, electrical, or plumbing systems; battery
19    systems; cooling systems and towers; temperature control
20    systems; other cabling; and other data center
21    infrastructure equipment and systems necessary to operate
22    qualified tangible personal property, including fixtures;
23    and component parts of any of the foregoing, including
24    installation, maintenance, repair, refurbishment, and
25    replacement of qualified tangible personal property to
26    generate, transform, transmit, distribute, or manage

 

 

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1    electricity necessary to operate qualified tangible
2    personal property; and all other tangible personal
3    property that is essential to the operations of a computer
4    data center. The term "qualified tangible personal
5    property" also includes building materials physically
6    incorporated in to the qualifying data center. To document
7    the exemption allowed under this Section, the retailer must
8    obtain from the purchaser a copy of the certificate of
9    eligibility issued by the Department.
10    This item (40) is exempt from the provisions of Section
113-90.
12(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
13100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
146-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised
151-8-19.)
 
16    Section 10. The Service Use Tax Act is amended by changing
17Section 3-5 as follows:
 
18    (35 ILCS 110/3-5)
19    Sec. 3-5. Exemptions. Use of the following tangible
20personal property is exempt from the tax imposed by this Act:
21    (1) Personal property purchased from a corporation,
22society, association, foundation, institution, or
23organization, other than a limited liability company, that is
24organized and operated as a not-for-profit service enterprise

 

 

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1for the benefit of persons 65 years of age or older if the
2personal property was not purchased by the enterprise for the
3purpose of resale by the enterprise.
4    (2) Personal property purchased by a non-profit Illinois
5county fair association for use in conducting, operating, or
6promoting the county fair.
7    (3) Personal property purchased by a not-for-profit arts or
8cultural organization that establishes, by proof required by
9the Department by rule, that it has received an exemption under
10Section 501(c)(3) of the Internal Revenue Code and that is
11organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after July 1, 2001 (the
18effective date of Public Act 92-35) this amendatory Act of the
1992nd General Assembly, however, an entity otherwise eligible
20for this exemption shall not make tax-free purchases unless it
21has an active identification number issued by the Department.
22    (4) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26    (5) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new and
3used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product. Beginning on July
91, 2017, graphic arts machinery and equipment is included in
10the manufacturing and assembling machinery and equipment
11exemption under Section 2 of this Act.
12    (6) Personal property purchased from a teacher-sponsored
13student organization affiliated with an elementary or
14secondary school located in Illinois.
15    (7) Farm machinery and equipment, both new and used,
16including that manufactured on special order, certified by the
17purchaser to be used primarily for production agriculture or
18State or federal agricultural programs, including individual
19replacement parts for the machinery and equipment, including
20machinery and equipment purchased for lease, and including
21implements of husbandry defined in Section 1-130 of the
22Illinois Vehicle Code, farm machinery and agricultural
23chemical and fertilizer spreaders, and nurse wagons required to
24be registered under Section 3-809 of the Illinois Vehicle Code,
25but excluding other motor vehicles required to be registered
26under the Illinois Vehicle Code. Horticultural polyhouses or

 

 

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1hoop houses used for propagating, growing, or overwintering
2plants shall be considered farm machinery and equipment under
3this item (7). Agricultural chemical tender tanks and dry boxes
4shall include units sold separately from a motor vehicle
5required to be licensed and units sold mounted on a motor
6vehicle required to be licensed if the selling price of the
7tender is separately stated.
8    Farm machinery and equipment shall include precision
9farming equipment that is installed or purchased to be
10installed on farm machinery and equipment including, but not
11limited to, tractors, harvesters, sprayers, planters, seeders,
12or spreaders. Precision farming equipment includes, but is not
13limited to, soil testing sensors, computers, monitors,
14software, global positioning and mapping systems, and other
15such equipment.
16    Farm machinery and equipment also includes computers,
17sensors, software, and related equipment used primarily in the
18computer-assisted operation of production agriculture
19facilities, equipment, and activities such as, but not limited
20to, the collection, monitoring, and correlation of animal and
21crop data for the purpose of formulating animal diets and
22agricultural chemicals. This item (7) is exempt from the
23provisions of Section 3-75.
24    (8) Until June 30, 2013, fuel and petroleum products sold
25to or used by an air common carrier, certified by the carrier
26to be used for consumption, shipment, or storage in the conduct

 

 

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

 

 

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1tubular goods, including casing and drill strings, (iii) pumps
2and pump-jack units, (iv) storage tanks and flow lines, (v) any
3individual replacement part for oil field exploration,
4drilling, and production equipment, and (vi) machinery and
5equipment purchased for lease; but excluding motor vehicles
6required to be registered under the Illinois Vehicle Code.
7    (11) Proceeds from the sale of photoprocessing machinery
8and equipment, including repair and replacement parts, both new
9and used, including that manufactured on special order,
10certified by the purchaser to be used primarily for
11photoprocessing, and including photoprocessing machinery and
12equipment purchased for lease.
13    (12) Until July 1, 2023, coal and aggregate exploration,
14mining, off-highway hauling, processing, maintenance, and
15reclamation equipment, including replacement parts and
16equipment, and including equipment purchased for lease, but
17excluding motor vehicles required to be registered under the
18Illinois Vehicle Code. The changes made to this Section by
19Public Act 97-767 apply on and after July 1, 2003, but no claim
20for credit or refund is allowed on or after August 16, 2013
21(the effective date of Public Act 98-456) for such taxes paid
22during the period beginning July 1, 2003 and ending on August
2316, 2013 (the effective date of Public Act 98-456).
24    (13) Semen used for artificial insemination of livestock
25for direct agricultural production.
26    (14) Horses, or interests in horses, registered with and

 

 

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1meeting the requirements of any of the Arabian Horse Club
2Registry of America, Appaloosa Horse Club, American Quarter
3Horse Association, United States Trotting Association, or
4Jockey Club, as appropriate, used for purposes of breeding or
5racing for prizes. This item (14) is exempt from the provisions
6of Section 3-75, and the exemption provided for under this item
7(14) applies for all periods beginning May 30, 1995, but no
8claim for credit or refund is allowed on or after January 1,
92008 (the effective date of Public Act 95-88) this amendatory
10Act of the 95th General Assembly for such taxes paid during the
11period beginning May 30, 2000 and ending on January 1, 2008
12(the effective date of Public Act 95-88) this amendatory Act of
13the 95th General Assembly.
14    (15) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients purchased by a
17lessor who leases the equipment, under a lease of one year or
18longer executed or in effect at the time the lessor would
19otherwise be subject to the tax imposed by this Act, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act. If the equipment is leased in a
23manner that does not qualify for this exemption or is used in
24any other non-exempt manner, the lessor shall be liable for the
25tax imposed under this Act or the Use Tax Act, as the case may
26be, based on the fair market value of the property at the time

 

 

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

 

 

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1refund of that amount from the lessor. If, however, that amount
2is not refunded to the lessee for any reason, the lessor is
3liable to pay that amount to the Department.
4    (17) Beginning with taxable years ending on or after
5December 31, 1995 and ending with taxable years ending on or
6before December 31, 2004, personal property that is donated for
7disaster relief to be used in a State or federally declared
8disaster area in Illinois or bordering Illinois by a
9manufacturer or retailer that is registered in this State to a
10corporation, society, association, foundation, or institution
11that has been issued a sales tax exemption identification
12number by the Department that assists victims of the disaster
13who reside within the declared disaster area.
14    (18) Beginning with taxable years ending on or after
15December 31, 1995 and ending with taxable years ending on or
16before December 31, 2004, personal property that is used in the
17performance of infrastructure repairs in this State, including
18but not limited to municipal roads and streets, access roads,
19bridges, sidewalks, waste disposal systems, water and sewer
20line extensions, water distribution and purification
21facilities, storm water drainage and retention facilities, and
22sewage treatment facilities, resulting from a State or
23federally declared disaster in Illinois or bordering Illinois
24when such repairs are initiated on facilities located in the
25declared disaster area within 6 months after the disaster.
26    (19) Beginning July 1, 1999, game or game birds purchased

 

 

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1at a "game breeding and hunting preserve area" as that term is
2used in the Wildlife Code. This paragraph is exempt from the
3provisions of Section 3-75.
4    (20) A motor vehicle, as that term is defined in Section
51-146 of the Illinois Vehicle Code, that is donated to a
6corporation, limited liability company, society, association,
7foundation, or institution that is determined by the Department
8to be organized and operated exclusively for educational
9purposes. For purposes of this exemption, "a corporation,
10limited liability company, society, association, foundation,
11or institution organized and operated exclusively for
12educational purposes" means all tax-supported public schools,
13private schools that offer systematic instruction in useful
14branches of learning by methods common to public schools and
15that compare favorably in their scope and intensity with the
16course of study presented in tax-supported schools, and
17vocational or technical schools or institutes organized and
18operated exclusively to provide a course of study of not less
19than 6 weeks duration and designed to prepare individuals to
20follow a trade or to pursue a manual, technical, mechanical,
21industrial, business, or commercial occupation.
22    (21) Beginning January 1, 2000, personal property,
23including food, purchased through fundraising events for the
24benefit of a public or private elementary or secondary school,
25a group of those schools, or one or more school districts if
26the events are sponsored by an entity recognized by the school

 

 

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1district that consists primarily of volunteers and includes
2parents and teachers of the school children. This paragraph
3does not apply to fundraising events (i) for the benefit of
4private home instruction or (ii) for which the fundraising
5entity purchases the personal property sold at the events from
6another individual or entity that sold the property for the
7purpose of resale by the fundraising entity and that profits
8from the sale to the fundraising entity. This paragraph is
9exempt from the provisions of Section 3-75.
10    (22) Beginning January 1, 2000 and through December 31,
112001, new or used automatic vending machines that prepare and
12serve hot food and beverages, including coffee, soup, and other
13items, and replacement parts for these machines. Beginning
14January 1, 2002 and through June 30, 2003, machines and parts
15for machines used in commercial, coin-operated amusement and
16vending business if a use or occupation tax is paid on the
17gross receipts derived from the use of the commercial,
18coin-operated amusement and vending machines. This paragraph
19is exempt from the provisions of Section 3-75.
20    (23) Beginning August 23, 2001 and through June 30, 2016,
21food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages, soft
23drinks, and food that has been prepared for immediate
24consumption) and prescription and nonprescription medicines,
25drugs, medical appliances, and insulin, urine testing
26materials, syringes, and needles used by diabetics, for human

 

 

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1use, when purchased for use by a person receiving medical
2assistance under Article V of the Illinois Public Aid Code who
3resides in a licensed long-term care facility, as defined in
4the Nursing Home Care Act, or in a licensed facility as defined
5in the ID/DD Community Care Act, the MC/DD Act, or the
6Specialized Mental Health Rehabilitation Act of 2013.
7    (24) Beginning on August 2, 2001 (the effective date of
8Public Act 92-227) this amendatory Act of the 92nd General
9Assembly, computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients purchased by a
12lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. If the equipment is leased in a
18manner that does not qualify for this exemption or is used in
19any other nonexempt manner, the lessor shall be liable for the
20tax imposed under this Act or the Use Tax Act, as the case may
21be, based on the fair market value of the property at the time
22the nonqualifying use occurs. No lessor shall collect or
23attempt to collect an amount (however designated) that purports
24to reimburse that lessor for the tax imposed by this Act or the
25Use Tax Act, as the case may be, if the tax has not been paid by
26the lessor. If a lessor improperly collects any such amount

 

 

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

 

 

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1pay that amount to the Department. This paragraph is exempt
2from the provisions of Section 3-75.
3    (26) Beginning January 1, 2008, tangible personal property
4used in the construction or maintenance of a community water
5supply, as defined under Section 3.145 of the Environmental
6Protection Act, that is operated by a not-for-profit
7corporation that holds a valid water supply permit issued under
8Title IV of the Environmental Protection Act. This paragraph is
9exempt from the provisions of Section 3-75.
10    (27) Beginning January 1, 2010, materials, parts,
11equipment, components, and furnishings incorporated into or
12upon an aircraft as part of the modification, refurbishment,
13completion, replacement, repair, or maintenance of the
14aircraft. This exemption includes consumable supplies used in
15the modification, refurbishment, completion, replacement,
16repair, and maintenance of aircraft, but excludes any
17materials, parts, equipment, components, and consumable
18supplies used in the modification, replacement, repair, and
19maintenance of aircraft engines or power plants, whether such
20engines or power plants are installed or uninstalled upon any
21such aircraft. "Consumable supplies" include, but are not
22limited to, adhesive, tape, sandpaper, general purpose
23lubricants, cleaning solution, latex gloves, and protective
24films. This exemption applies only to the use of qualifying
25tangible personal property transferred incident to the
26modification, refurbishment, completion, replacement, repair,

 

 

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1or maintenance of aircraft by persons who (i) hold an Air
2Agency Certificate and are empowered to operate an approved
3repair station by the Federal Aviation Administration, (ii)
4have a Class IV Rating, and (iii) conduct operations in
5accordance with Part 145 of the Federal Aviation Regulations.
6The exemption does not include aircraft operated by a
7commercial air carrier providing scheduled passenger air
8service pursuant to authority issued under Part 121 or Part 129
9of the Federal Aviation Regulations. The changes made to this
10paragraph (27) by Public Act 98-534 are declarative of existing
11law.
12    (28) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 3-75.
26    (29) Beginning January 1, 2017, menstrual pads, tampons,

 

 

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1and menstrual cups.
2    (30) Tangible personal property transferred to a purchaser
3who is exempt from the tax imposed by this Act by operation of
4federal law. This paragraph is exempt from the provisions of
5Section 3-75.
6    (31) Beginning on January 1, 2020, qualified tangible
7personal property used in the construction or operation of a
8data center that has been granted a certificate of exemption by
9the Department, whether that tangible personal property is
10purchased by the owner, operator, or tenant of the data center
11or by a contractor or subcontractor of the owner, operator, or
12tenant. Data centers that would have qualified for a
13certificate of exemption prior to January 1, 2020 had this
14amendatory Act of the 101st General Assembly been in effect,
15may apply for and obtain an exemption for subsequent purchases
16of computer equipment or enabling software purchased or leased
17to upgrade, supplement, or replace computer equipment or
18enabling software purchased or leased in the original
19investment that would have qualified.
20    The Department shall grant a certificate of exemption under
21this item (31) to qualified data centers as defined by
22subsection (b) of Section 2505-810 of the Department of Revenue
23Law of the Civil Administrative Code of Illinois.
24    For the purposes of this item (31):
25        "Data center" means a building or a series of buildings
26    rehabilitated or constructed to house working servers in

 

 

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

 

 

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1    obtain from the purchaser a copy of the certificate of
2    eligibility issued by the Department.
3    This item (31) is exempt from the provisions of Section
43-75.
5(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
6100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
71-4-19; revised 1-8-19.)
 
8    Section 15. The Service Occupation Tax Act is amended by
9changing Section 3-5 as follows:
 
10    (35 ILCS 115/3-5)
11    Sec. 3-5. Exemptions. The following tangible personal
12property is exempt from the tax imposed by this Act:
13    (1) Personal property sold by a corporation, society,
14association, foundation, institution, or organization, other
15than a limited liability company, that is organized and
16operated as a not-for-profit service enterprise for the benefit
17of persons 65 years of age or older if the personal property
18was not purchased by the enterprise for the purpose of resale
19by the enterprise.
20    (2) Personal property purchased by a not-for-profit
21Illinois county fair association for use in conducting,
22operating, or promoting the county fair.
23    (3) Personal property purchased by any not-for-profit arts
24or cultural organization that establishes, by proof required by

 

 

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1the Department by rule, that it has received an exemption under
2Section 501(c)(3) of the Internal Revenue Code and that is
3organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after July 1, 2001 (the
10effective date of Public Act 92-35) this amendatory Act of the
1192nd General Assembly, however, an entity otherwise eligible
12for this exemption shall not make tax-free purchases unless it
13has an active identification number issued by the Department.
14    (4) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (5) Until July 1, 2003 and beginning again on September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new and
21used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product. Beginning on July

 

 

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11, 2017, graphic arts machinery and equipment is included in
2the manufacturing and assembling machinery and equipment
3exemption under Section 2 of this Act.
4    (6) Personal property sold by a teacher-sponsored student
5organization affiliated with an elementary or secondary school
6located in Illinois.
7    (7) Farm machinery and equipment, both new and used,
8including that manufactured on special order, certified by the
9purchaser to be used primarily for production agriculture or
10State or federal agricultural programs, including individual
11replacement parts for the machinery and equipment, including
12machinery and equipment purchased for lease, and including
13implements of husbandry defined in Section 1-130 of the
14Illinois Vehicle Code, farm machinery and agricultural
15chemical and fertilizer spreaders, and nurse wagons required to
16be registered under Section 3-809 of the Illinois Vehicle Code,
17but excluding other motor vehicles required to be registered
18under the Illinois Vehicle Code. Horticultural polyhouses or
19hoop houses used for propagating, growing, or overwintering
20plants shall be considered farm machinery and equipment under
21this item (7). Agricultural chemical tender tanks and dry boxes
22shall include units sold separately from a motor vehicle
23required to be licensed and units sold mounted on a motor
24vehicle required to be licensed if the selling price of the
25tender is separately stated.
26    Farm machinery and equipment shall include precision

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (7) is exempt from the
15provisions of Section 3-55.
16    (8) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the conduct
19of its business as an air common carrier, for a flight destined
20for or returning from a location or locations outside the
21United States without regard to previous or subsequent domestic
22stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold to
24or used by an air carrier, certified by the carrier to be used
25for consumption, shipment, or storage in the conduct of its
26business as an air common carrier, for a flight that (i) is

 

 

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1engaged in foreign trade or is engaged in trade between the
2United States and any of its possessions and (ii) transports at
3least one individual or package for hire from the city of
4origination to the city of final destination on the same
5aircraft, without regard to a change in the flight number of
6that aircraft.
7    (9) Proceeds of mandatory service charges separately
8stated on customers' bills for the purchase and consumption of
9food and beverages, to the extent that the proceeds of the
10service charge are in fact turned over as tips or as a
11substitute for tips to the employees who participate directly
12in preparing, serving, hosting or cleaning up the food or
13beverage function with respect to which the service charge is
14imposed.
15    (10) Until July 1, 2003, oil field exploration, drilling,
16and production equipment, including (i) rigs and parts of rigs,
17rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
18tubular goods, including casing and drill strings, (iii) pumps
19and pump-jack units, (iv) storage tanks and flow lines, (v) any
20individual replacement part for oil field exploration,
21drilling, and production equipment, and (vi) machinery and
22equipment purchased for lease; but excluding motor vehicles
23required to be registered under the Illinois Vehicle Code.
24    (11) Photoprocessing machinery and equipment, including
25repair and replacement parts, both new and used, including that
26manufactured on special order, certified by the purchaser to be

 

 

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1used primarily for photoprocessing, and including
2photoprocessing machinery and equipment purchased for lease.
3    (12) Until July 1, 2023, coal and aggregate exploration,
4mining, off-highway hauling, processing, maintenance, and
5reclamation equipment, including replacement parts and
6equipment, and including equipment purchased for lease, but
7excluding motor vehicles required to be registered under the
8Illinois Vehicle Code. The changes made to this Section by
9Public Act 97-767 apply on and after July 1, 2003, but no claim
10for credit or refund is allowed on or after August 16, 2013
11(the effective date of Public Act 98-456) for such taxes paid
12during the period beginning July 1, 2003 and ending on August
1316, 2013 (the effective date of Public Act 98-456).
14    (13) Beginning January 1, 1992 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages, soft
17drinks and food that has been prepared for immediate
18consumption) and prescription and non-prescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

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1    (14) Semen used for artificial insemination of livestock
2for direct agricultural production.
3    (15) Horses, or interests in horses, registered with and
4meeting the requirements of any of the Arabian Horse Club
5Registry of America, Appaloosa Horse Club, American Quarter
6Horse Association, United States Trotting Association, or
7Jockey Club, as appropriate, used for purposes of breeding or
8racing for prizes. This item (15) is exempt from the provisions
9of Section 3-55, and the exemption provided for under this item
10(15) applies for all periods beginning May 30, 1995, but no
11claim for credit or refund is allowed on or after January 1,
122008 (the effective date of Public Act 95-88) for such taxes
13paid during the period beginning May 30, 2000 and ending on
14January 1, 2008 (the effective date of Public Act 95-88).
15    (16) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients sold to a lessor
18who leases the equipment, under a lease of one year or longer
19executed or in effect at the time of the purchase, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act.
23    (17) Personal property sold to a lessor who leases the
24property, under a lease of one year or longer executed or in
25effect at the time of the purchase, to a governmental body that
26has been issued an active tax exemption identification number

 

 

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

 

 

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1in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 3-55.
3    (21) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the Department
7to be organized and operated exclusively for educational
8purposes. For purposes of this exemption, "a corporation,
9limited liability company, society, association, foundation,
10or institution organized and operated exclusively for
11educational purposes" means all tax-supported public schools,
12private schools that offer systematic instruction in useful
13branches of learning by methods common to public schools and
14that compare favorably in their scope and intensity with the
15course of study presented in tax-supported schools, and
16vocational or technical schools or institutes organized and
17operated exclusively to provide a course of study of not less
18than 6 weeks duration and designed to prepare individuals to
19follow a trade or to pursue a manual, technical, mechanical,
20industrial, business, or commercial occupation.
21    (22) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

 

 

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1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 3-55.
9    (23) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and other
12items, and replacement parts for these machines. Beginning
13January 1, 2002 and through June 30, 2003, machines and parts
14for machines used in commercial, coin-operated amusement and
15vending business if a use or occupation tax is paid on the
16gross receipts derived from the use of the commercial,
17coin-operated amusement and vending machines. This paragraph
18is exempt from the provisions of Section 3-55.
19    (24) Beginning on August 2, 2001 (the effective date of
20Public Act 92-227) this amendatory Act of the 92nd General
21Assembly, computers and communications equipment utilized for
22any hospital purpose and equipment used in the diagnosis,
23analysis, or treatment of hospital patients sold to a lessor
24who leases the equipment, under a lease of one year or longer
25executed or in effect at the time of the purchase, to a
26hospital that has been issued an active tax exemption

 

 

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1identification number by the Department under Section 1g of the
2Retailers' Occupation Tax Act. This paragraph is exempt from
3the provisions of Section 3-55.
4    (25) Beginning on August 2, 2001 (the effective date of
5Public Act 92-227) this amendatory Act of the 92nd General
6Assembly, personal property sold to a lessor who leases the
7property, under a lease of one year or longer executed or in
8effect at the time of the purchase, to a governmental body that
9has been issued an active tax exemption identification number
10by the Department under Section 1g of the Retailers' Occupation
11Tax Act. This paragraph is exempt from the provisions of
12Section 3-55.
13    (26) Beginning on January 1, 2002 and through June 30,
142016, tangible personal property purchased from an Illinois
15retailer by a taxpayer engaged in centralized purchasing
16activities in Illinois who will, upon receipt of the property
17in Illinois, temporarily store the property in Illinois (i) for
18the purpose of subsequently transporting it outside this State
19for use or consumption thereafter solely outside this State or
20(ii) for the purpose of being processed, fabricated, or
21manufactured into, attached to, or incorporated into other
22tangible personal property to be transported outside this State
23and thereafter used or consumed solely outside this State. The
24Director of Revenue shall, pursuant to rules adopted in
25accordance with the Illinois Administrative Procedure Act,
26issue a permit to any taxpayer in good standing with the

 

 

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1Department who is eligible for the exemption under this
2paragraph (26). The permit issued under this paragraph (26)
3shall authorize the holder, to the extent and in the manner
4specified in the rules adopted under this Act, to purchase
5tangible personal property from a retailer exempt from the
6taxes imposed by this Act. Taxpayers shall maintain all
7necessary books and records to substantiate the use and
8consumption of all such tangible personal property outside of
9the State of Illinois.
10    (27) Beginning January 1, 2008, tangible personal property
11used in the construction or maintenance of a community water
12supply, as defined under Section 3.145 of the Environmental
13Protection Act, that is operated by a not-for-profit
14corporation that holds a valid water supply permit issued under
15Title IV of the Environmental Protection Act. This paragraph is
16exempt from the provisions of Section 3-55.
17    (28) Tangible personal property sold to a
18public-facilities corporation, as described in Section
1911-65-10 of the Illinois Municipal Code, for purposes of
20constructing or furnishing a municipal convention hall, but
21only if the legal title to the municipal convention hall is
22transferred to the municipality without any further
23consideration by or on behalf of the municipality at the time
24of the completion of the municipal convention hall or upon the
25retirement or redemption of any bonds or other debt instruments
26issued by the public-facilities corporation in connection with

 

 

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1the development of the municipal convention hall. This
2exemption includes existing public-facilities corporations as
3provided in Section 11-65-25 of the Illinois Municipal Code.
4This paragraph is exempt from the provisions of Section 3-55.
5    (29) Beginning January 1, 2010, materials, parts,
6equipment, components, and furnishings incorporated into or
7upon an aircraft as part of the modification, refurbishment,
8completion, replacement, repair, or maintenance of the
9aircraft. This exemption includes consumable supplies used in
10the modification, refurbishment, completion, replacement,
11repair, and maintenance of aircraft, but excludes any
12materials, parts, equipment, components, and consumable
13supplies used in the modification, replacement, repair, and
14maintenance of aircraft engines or power plants, whether such
15engines or power plants are installed or uninstalled upon any
16such aircraft. "Consumable supplies" include, but are not
17limited to, adhesive, tape, sandpaper, general purpose
18lubricants, cleaning solution, latex gloves, and protective
19films. This exemption applies only to the transfer of
20qualifying tangible personal property incident to the
21modification, refurbishment, completion, replacement, repair,
22or maintenance of an aircraft by persons who (i) hold an Air
23Agency Certificate and are empowered to operate an approved
24repair station by the Federal Aviation Administration, (ii)
25have a Class IV Rating, and (iii) conduct operations in
26accordance with Part 145 of the Federal Aviation Regulations.

 

 

SB1591- 55 -LRB101 08762 HLH 53849 b

1The exemption does not include aircraft operated by a
2commercial air carrier providing scheduled passenger air
3service pursuant to authority issued under Part 121 or Part 129
4of the Federal Aviation Regulations. The changes made to this
5paragraph (29) by Public Act 98-534 are declarative of existing
6law.
7    (30) Beginning January 1, 2017, menstrual pads, tampons,
8and menstrual cups.
9    (31) Tangible personal property transferred to a purchaser
10who is exempt from tax by operation of federal law. This
11paragraph is exempt from the provisions of Section 3-55.
12    (32) Beginning on January 1, 2020, qualified tangible
13personal property used in the construction or operation of a
14data center that has been granted a certificate of exemption by
15the Department, whether that tangible personal property is
16purchased by the owner, operator, or tenant of the data center
17or by a contractor or subcontractor of the owner, operator, or
18tenant. Data centers that would have qualified for a
19certificate of exemption prior to January 1, 2020 had this
20amendatory Act of the 101st General Assembly been in effect,
21may apply for and obtain an exemption for subsequent purchases
22of computer equipment or enabling software purchased or leased
23to upgrade, supplement, or replace computer equipment or
24enabling software purchased or leased in the original
25investment that would have qualified.
26    The Department shall grant a certificate of exemption under

 

 

SB1591- 56 -LRB101 08762 HLH 53849 b

1this item (32) to qualified data centers as defined by
2subsection (b) of Section 2505-810 of the Department of Revenue
3Law of the Civil Administrative Code of Illinois.
4    For the purposes of this item (32):
5        "Data center" means a building or a series of buildings
6    rehabilitated or constructed to house working servers in
7    one physical location or multiple sites within the State of
8    Illinois.
9        "Qualified tangible personal property" means:
10    electrical systems and equipment; climate control and
11    chilling equipment and systems; mechanical systems and
12    equipment; monitoring and secure systems; emergency
13    generators; hardware; computers; servers; data storage
14    devices; network connectivity equipment; racks; cabinets;
15    telecommunications cabling infrastructure; raised floor
16    systems; peripheral components or systems; software;
17    mechanical, electrical, or plumbing systems; battery
18    systems; cooling systems and towers; temperature control
19    systems; other cabling; and other data center
20    infrastructure equipment and systems necessary to operate
21    qualified tangible personal property, including fixtures;
22    and component parts of any of the foregoing, including
23    installation, maintenance, repair, refurbishment, and
24    replacement of qualified tangible personal property to
25    generate, transform, transmit, distribute, or manage
26    electricity necessary to operate qualified tangible

 

 

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1    personal property; and all other tangible personal
2    property that is essential to the operations of a computer
3    data center. The term "qualified tangible personal
4    property" also includes building materials physically
5    incorporated in to the qualifying data center. To document
6    the exemption allowed under this Section, the retailer must
7    obtain from the purchaser a copy of the certificate of
8    eligibility issued by the Department.
9    This item (32) is exempt from the provisions of Section
103-55.
11(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
12100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
131-4-19; revised 1-8-19.)
 
14    Section 20. The Retailers' Occupation Tax Act is amended by
15changing Section 2-5 as follows:
 
16    (35 ILCS 120/2-5)
17    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
18sale of the following tangible personal property are exempt
19from the tax imposed by this Act:
20        (1) Farm chemicals.
21        (2) Farm machinery and equipment, both new and used,
22    including that manufactured on special order, certified by
23    the purchaser to be used primarily for production
24    agriculture or State or federal agricultural programs,

 

 

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

 

 

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1    the computer-assisted operation of production agriculture
2    facilities, equipment, and activities such as, but not
3    limited to, the collection, monitoring, and correlation of
4    animal and crop data for the purpose of formulating animal
5    diets and agricultural chemicals. This item (2) is exempt
6    from the provisions of Section 2-70.
7        (3) Until July 1, 2003, distillation machinery and
8    equipment, sold as a unit or kit, assembled or installed by
9    the retailer, certified by the user to be used only for the
10    production of ethyl alcohol that will be used for
11    consumption as motor fuel or as a component of motor fuel
12    for the personal use of the user, and not subject to sale
13    or resale.
14        (4) Until July 1, 2003 and beginning again September 1,
15    2004 through August 30, 2014, graphic arts machinery and
16    equipment, including repair and replacement parts, both
17    new and used, and including that manufactured on special
18    order or purchased for lease, certified by the purchaser to
19    be used primarily for graphic arts production. Equipment
20    includes chemicals or chemicals acting as catalysts but
21    only if the chemicals or chemicals acting as catalysts
22    effect a direct and immediate change upon a graphic arts
23    product. Beginning on July 1, 2017, graphic arts machinery
24    and equipment is included in the manufacturing and
25    assembling machinery and equipment exemption under
26    paragraph (14).

 

 

SB1591- 60 -LRB101 08762 HLH 53849 b

1        (5) A motor vehicle that is used for automobile
2    renting, as defined in the Automobile Renting Occupation
3    and Use Tax Act. This paragraph is exempt from the
4    provisions of Section 2-70.
5        (6) Personal property sold by a teacher-sponsored
6    student organization affiliated with an elementary or
7    secondary school located in Illinois.
8        (7) Until July 1, 2003, proceeds of that portion of the
9    selling price of a passenger car the sale of which is
10    subject to the Replacement Vehicle Tax.
11        (8) Personal property sold to an Illinois county fair
12    association for use in conducting, operating, or promoting
13    the county fair.
14        (9) Personal property sold to a not-for-profit arts or
15    cultural organization that establishes, by proof required
16    by the Department by rule, that it has received an
17    exemption under Section 501(c)(3) of the Internal Revenue
18    Code and that is organized and operated primarily for the
19    presentation or support of arts or cultural programming,
20    activities, or services. These organizations include, but
21    are not limited to, music and dramatic arts organizations
22    such as symphony orchestras and theatrical groups, arts and
23    cultural service organizations, local arts councils,
24    visual arts organizations, and media arts organizations.
25    On and after July 1, 2001 (the effective date of Public Act
26    92-35), however, an entity otherwise eligible for this

 

 

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1    exemption shall not make tax-free purchases unless it has
2    an active identification number issued by the Department.
3        (10) Personal property sold by a corporation, society,
4    association, foundation, institution, or organization,
5    other than a limited liability company, that is organized
6    and operated as a not-for-profit service enterprise for the
7    benefit of persons 65 years of age or older if the personal
8    property was not purchased by the enterprise for the
9    purpose of resale by the enterprise.
10        (11) Personal property sold to a governmental body, to
11    a corporation, society, association, foundation, or
12    institution organized and operated exclusively for
13    charitable, religious, or educational purposes, or to a
14    not-for-profit corporation, society, association,
15    foundation, institution, or organization that has no
16    compensated officers or employees and that is organized and
17    operated primarily for the recreation of persons 55 years
18    of age or older. A limited liability company may qualify
19    for the exemption under this paragraph only if the limited
20    liability company is organized and operated exclusively
21    for educational purposes. On and after July 1, 1987,
22    however, no entity otherwise eligible for this exemption
23    shall make tax-free purchases unless it has an active
24    identification number issued by the Department.
25        (12) (Blank).
26        (12-5) On and after July 1, 2003 and through June 30,

 

 

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1    2004, motor vehicles of the second division with a gross
2    vehicle weight in excess of 8,000 pounds that are subject
3    to the commercial distribution fee imposed under Section
4    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
5    2004 and through June 30, 2005, the use in this State of
6    motor vehicles of the second division: (i) with a gross
7    vehicle weight rating in excess of 8,000 pounds; (ii) that
8    are subject to the commercial distribution fee imposed
9    under Section 3-815.1 of the Illinois Vehicle Code; and
10    (iii) that are primarily used for commercial purposes.
11    Through June 30, 2005, this exemption applies to repair and
12    replacement parts added after the initial purchase of such
13    a motor vehicle if that motor vehicle is used in a manner
14    that would qualify for the rolling stock exemption
15    otherwise provided for in this Act. For purposes of this
16    paragraph, "used for commercial purposes" means the
17    transportation of persons or property in furtherance of any
18    commercial or industrial enterprise whether for-hire or
19    not.
20        (13) Proceeds from sales to owners, lessors, or
21    shippers of tangible personal property that is utilized by
22    interstate carriers for hire for use as rolling stock
23    moving in interstate commerce and equipment operated by a
24    telecommunications provider, licensed as a common carrier
25    by the Federal Communications Commission, which is
26    permanently installed in or affixed to aircraft moving in

 

 

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1    interstate commerce.
2        (14) Machinery and equipment that will be used by the
3    purchaser, or a lessee of the purchaser, primarily in the
4    process of manufacturing or assembling tangible personal
5    property for wholesale or retail sale or lease, whether the
6    sale or lease is made directly by the manufacturer or by
7    some other person, whether the materials used in the
8    process are owned by the manufacturer or some other person,
9    or whether the sale or lease is made apart from or as an
10    incident to the seller's engaging in the service occupation
11    of producing machines, tools, dies, jigs, patterns,
12    gauges, or other similar items of no commercial value on
13    special order for a particular purchaser. The exemption
14    provided by this paragraph (14) does not include machinery
15    and equipment used in (i) the generation of electricity for
16    wholesale or retail sale; (ii) the generation or treatment
17    of natural or artificial gas for wholesale or retail sale
18    that is delivered to customers through pipes, pipelines, or
19    mains; or (iii) the treatment of water for wholesale or
20    retail sale that is delivered to customers through pipes,
21    pipelines, or mains. The provisions of Public Act 98-583
22    are declaratory of existing law as to the meaning and scope
23    of this exemption. Beginning on July 1, 2017, the exemption
24    provided by this paragraph (14) includes, but is not
25    limited to, graphic arts machinery and equipment, as
26    defined in paragraph (4) of this Section.

 

 

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1        (15) Proceeds of mandatory service charges separately
2    stated on customers' bills for purchase and consumption of
3    food and beverages, to the extent that the proceeds of the
4    service charge are in fact turned over as tips or as a
5    substitute for tips to the employees who participate
6    directly in preparing, serving, hosting or cleaning up the
7    food or beverage function with respect to which the service
8    charge is imposed.
9        (16) Tangible personal property sold to a purchaser if
10    the purchaser is exempt from use tax by operation of
11    federal law. This paragraph is exempt from the provisions
12    of Section 2-70.
13        (17) Tangible personal property sold to a common
14    carrier by rail or motor that receives the physical
15    possession of the property in Illinois and that transports
16    the property, or shares with another common carrier in the
17    transportation of the property, out of Illinois on a
18    standard uniform bill of lading showing the seller of the
19    property as the shipper or consignor of the property to a
20    destination outside Illinois, for use outside Illinois.
21        (18) Legal tender, currency, medallions, or gold or
22    silver coinage issued by the State of Illinois, the
23    government of the United States of America, or the
24    government of any foreign country, and bullion.
25        (19) Until July 1, 2003, oil field exploration,
26    drilling, and production equipment, including (i) rigs and

 

 

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1    parts of rigs, rotary rigs, cable tool rigs, and workover
2    rigs, (ii) pipe and tubular goods, including casing and
3    drill strings, (iii) pumps and pump-jack units, (iv)
4    storage tanks and flow lines, (v) any individual
5    replacement part for oil field exploration, drilling, and
6    production equipment, and (vi) machinery and equipment
7    purchased for lease; but excluding motor vehicles required
8    to be registered under the Illinois Vehicle Code.
9        (20) Photoprocessing machinery and equipment,
10    including repair and replacement parts, both new and used,
11    including that manufactured on special order, certified by
12    the purchaser to be used primarily for photoprocessing, and
13    including photoprocessing machinery and equipment
14    purchased for lease.
15        (21) Until July 1, 2023, coal and aggregate
16    exploration, mining, off-highway hauling, processing,
17    maintenance, and reclamation equipment, including
18    replacement parts and equipment, and including equipment
19    purchased for lease, but excluding motor vehicles required
20    to be registered under the Illinois Vehicle Code. The
21    changes made to this Section by Public Act 97-767 apply on
22    and after July 1, 2003, but no claim for credit or refund
23    is allowed on or after August 16, 2013 (the effective date
24    of Public Act 98-456) for such taxes paid during the period
25    beginning July 1, 2003 and ending on August 16, 2013 (the
26    effective date of Public Act 98-456).

 

 

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1        (22) Until June 30, 2013, fuel and petroleum products
2    sold to or used by an air carrier, certified by the carrier
3    to be used for consumption, shipment, or storage in the
4    conduct of its business as an air common carrier, for a
5    flight destined for or returning from a location or
6    locations outside the United States without regard to
7    previous or subsequent domestic stopovers.
8        Beginning July 1, 2013, fuel and petroleum products
9    sold to or used by an air carrier, certified by the carrier
10    to be used for consumption, shipment, or storage in the
11    conduct of its business as an air common carrier, for a
12    flight that (i) is engaged in foreign trade or is engaged
13    in trade between the United States and any of its
14    possessions and (ii) transports at least one individual or
15    package for hire from the city of origination to the city
16    of final destination on the same aircraft, without regard
17    to a change in the flight number of that aircraft.
18        (23) A transaction in which the purchase order is
19    received by a florist who is located outside Illinois, but
20    who has a florist located in Illinois deliver the property
21    to the purchaser or the purchaser's donee in Illinois.
22        (24) Fuel consumed or used in the operation of ships,
23    barges, or vessels that are used primarily in or for the
24    transportation of property or the conveyance of persons for
25    hire on rivers bordering on this State if the fuel is
26    delivered by the seller to the purchaser's barge, ship, or

 

 

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1    vessel while it is afloat upon that bordering river.
2        (25) Except as provided in item (25-5) of this Section,
3    a motor vehicle sold in this State to a nonresident even
4    though the motor vehicle is delivered to the nonresident in
5    this State, if the motor vehicle is not to be titled in
6    this State, and if a drive-away permit is issued to the
7    motor vehicle as provided in Section 3-603 of the Illinois
8    Vehicle Code or if the nonresident purchaser has vehicle
9    registration plates to transfer to the motor vehicle upon
10    returning to his or her home state. The issuance of the
11    drive-away permit or having the out-of-state registration
12    plates to be transferred is prima facie evidence that the
13    motor vehicle will not be titled in this State.
14        (25-5) The exemption under item (25) does not apply if
15    the state in which the motor vehicle will be titled does
16    not allow a reciprocal exemption for a motor vehicle sold
17    and delivered in that state to an Illinois resident but
18    titled in Illinois. The tax collected under this Act on the
19    sale of a motor vehicle in this State to a resident of
20    another state that does not allow a reciprocal exemption
21    shall be imposed at a rate equal to the state's rate of tax
22    on taxable property in the state in which the purchaser is
23    a resident, except that the tax shall not exceed the tax
24    that would otherwise be imposed under this Act. At the time
25    of the sale, the purchaser shall execute a statement,
26    signed under penalty of perjury, of his or her intent to

 

 

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1    title the vehicle in the state in which the purchaser is a
2    resident within 30 days after the sale and of the fact of
3    the payment to the State of Illinois of tax in an amount
4    equivalent to the state's rate of tax on taxable property
5    in his or her state of residence and shall submit the
6    statement to the appropriate tax collection agency in his
7    or her state of residence. In addition, the retailer must
8    retain a signed copy of the statement in his or her
9    records. Nothing in this item shall be construed to require
10    the removal of the vehicle from this state following the
11    filing of an intent to title the vehicle in the purchaser's
12    state of residence if the purchaser titles the vehicle in
13    his or her state of residence within 30 days after the date
14    of sale. The tax collected under this Act in accordance
15    with this item (25-5) shall be proportionately distributed
16    as if the tax were collected at the 6.25% general rate
17    imposed under this Act.
18        (25-7) Beginning on July 1, 2007, no tax is imposed
19    under this Act on the sale of an aircraft, as defined in
20    Section 3 of the Illinois Aeronautics Act, if all of the
21    following conditions are met:
22            (1) the aircraft leaves this State within 15 days
23        after the later of either the issuance of the final
24        billing for the sale of the aircraft, or the authorized
25        approval for return to service, completion of the
26        maintenance record entry, and completion of the test

 

 

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1        flight and ground test for inspection, as required by
2        14 C.F.R. 91.407;
3            (2) the aircraft is not based or registered in this
4        State after the sale of the aircraft; and
5            (3) the seller retains in his or her books and
6        records and provides to the Department a signed and
7        dated certification from the purchaser, on a form
8        prescribed by the Department, certifying that the
9        requirements of this item (25-7) are met. The
10        certificate must also include the name and address of
11        the purchaser, the address of the location where the
12        aircraft is to be titled or registered, the address of
13        the primary physical location of the aircraft, and
14        other information that the Department may reasonably
15        require.
16        For purposes of this item (25-7):
17        "Based in this State" means hangared, stored, or
18    otherwise used, excluding post-sale customizations as
19    defined in this Section, for 10 or more days in each
20    12-month period immediately following the date of the sale
21    of the aircraft.
22        "Registered in this State" means an aircraft
23    registered with the Department of Transportation,
24    Aeronautics Division, or titled or registered with the
25    Federal Aviation Administration to an address located in
26    this State.

 

 

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1        This paragraph (25-7) is exempt from the provisions of
2    Section 2-70.
3        (26) Semen used for artificial insemination of
4    livestock for direct agricultural production.
5        (27) Horses, or interests in horses, registered with
6    and meeting the requirements of any of the Arabian Horse
7    Club Registry of America, Appaloosa Horse Club, American
8    Quarter Horse Association, United States Trotting
9    Association, or Jockey Club, as appropriate, used for
10    purposes of breeding or racing for prizes. This item (27)
11    is exempt from the provisions of Section 2-70, and the
12    exemption provided for under this item (27) applies for all
13    periods beginning May 30, 1995, but no claim for credit or
14    refund is allowed on or after January 1, 2008 (the
15    effective date of Public Act 95-88) for such taxes paid
16    during the period beginning May 30, 2000 and ending on
17    January 1, 2008 (the effective date of Public Act 95-88).
18        (28) Computers and communications equipment utilized
19    for any hospital purpose and equipment used in the
20    diagnosis, analysis, or treatment of hospital patients
21    sold to a lessor who leases the equipment, under a lease of
22    one year or longer executed or in effect at the time of the
23    purchase, to a hospital that has been issued an active tax
24    exemption identification number by the Department under
25    Section 1g of this Act.
26        (29) Personal property sold to a lessor who leases the

 

 

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1    property, under a lease of one year or longer executed or
2    in effect at the time of the purchase, to a governmental
3    body that has been issued an active tax exemption
4    identification number by the Department under Section 1g of
5    this Act.
6        (30) Beginning with taxable years ending on or after
7    December 31, 1995 and ending with taxable years ending on
8    or before December 31, 2004, personal property that is
9    donated for disaster relief to be used in a State or
10    federally declared disaster area in Illinois or bordering
11    Illinois by a manufacturer or retailer that is registered
12    in this State to a corporation, society, association,
13    foundation, or institution that has been issued a sales tax
14    exemption identification number by the Department that
15    assists victims of the disaster who reside within the
16    declared disaster area.
17        (31) Beginning with taxable years ending on or after
18    December 31, 1995 and ending with taxable years ending on
19    or before December 31, 2004, personal property that is used
20    in the performance of infrastructure repairs in this State,
21    including but not limited to municipal roads and streets,
22    access roads, bridges, sidewalks, waste disposal systems,
23    water and sewer line extensions, water distribution and
24    purification facilities, storm water drainage and
25    retention facilities, and sewage treatment facilities,
26    resulting from a State or federally declared disaster in

 

 

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1    Illinois or bordering Illinois when such repairs are
2    initiated on facilities located in the declared disaster
3    area within 6 months after the disaster.
4        (32) Beginning July 1, 1999, game or game birds sold at
5    a "game breeding and hunting preserve area" as that term is
6    used in the Wildlife Code. This paragraph is exempt from
7    the provisions of Section 2-70.
8        (33) A motor vehicle, as that term is defined in
9    Section 1-146 of the Illinois Vehicle Code, that is donated
10    to a corporation, limited liability company, society,
11    association, foundation, or institution that is determined
12    by the Department to be organized and operated exclusively
13    for educational purposes. For purposes of this exemption,
14    "a corporation, limited liability company, society,
15    association, foundation, or institution organized and
16    operated exclusively for educational purposes" means all
17    tax-supported public schools, private schools that offer
18    systematic instruction in useful branches of learning by
19    methods common to public schools and that compare favorably
20    in their scope and intensity with the course of study
21    presented in tax-supported schools, and vocational or
22    technical schools or institutes organized and operated
23    exclusively to provide a course of study of not less than 6
24    weeks duration and designed to prepare individuals to
25    follow a trade or to pursue a manual, technical,
26    mechanical, industrial, business, or commercial

 

 

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1    occupation.
2        (34) Beginning January 1, 2000, personal property,
3    including food, purchased through fundraising events for
4    the benefit of a public or private elementary or secondary
5    school, a group of those schools, or one or more school
6    districts if the events are sponsored by an entity
7    recognized by the school district that consists primarily
8    of volunteers and includes parents and teachers of the
9    school children. This paragraph does not apply to
10    fundraising events (i) for the benefit of private home
11    instruction or (ii) for which the fundraising entity
12    purchases the personal property sold at the events from
13    another individual or entity that sold the property for the
14    purpose of resale by the fundraising entity and that
15    profits from the sale to the fundraising entity. This
16    paragraph is exempt from the provisions of Section 2-70.
17        (35) Beginning January 1, 2000 and through December 31,
18    2001, new or used automatic vending machines that prepare
19    and serve hot food and beverages, including coffee, soup,
20    and other items, and replacement parts for these machines.
21    Beginning January 1, 2002 and through June 30, 2003,
22    machines and parts for machines used in commercial,
23    coin-operated amusement and vending business if a use or
24    occupation tax is paid on the gross receipts derived from
25    the use of the commercial, coin-operated amusement and
26    vending machines. This paragraph is exempt from the

 

 

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1    provisions of Section 2-70.
2        (35-5) Beginning August 23, 2001 and through June 30,
3    2016, food for human consumption that is to be consumed off
4    the premises where it is sold (other than alcoholic
5    beverages, soft drinks, and food that has been prepared for
6    immediate consumption) and prescription and
7    nonprescription medicines, drugs, medical appliances, and
8    insulin, urine testing materials, syringes, and needles
9    used by diabetics, for human use, when purchased for use by
10    a person receiving medical assistance under Article V of
11    the Illinois Public Aid Code who resides in a licensed
12    long-term care facility, as defined in the Nursing Home
13    Care Act, or a licensed facility as defined in the ID/DD
14    Community Care Act, the MC/DD Act, or the Specialized
15    Mental Health Rehabilitation Act of 2013.
16        (36) Beginning August 2, 2001, computers and
17    communications equipment utilized for any hospital purpose
18    and equipment used in the diagnosis, analysis, or treatment
19    of hospital patients sold to a lessor who leases the
20    equipment, under a lease of one year or longer executed or
21    in effect at the time of the purchase, to a hospital that
22    has been issued an active tax exemption identification
23    number by the Department under Section 1g of this Act. This
24    paragraph is exempt from the provisions of Section 2-70.
25        (37) Beginning August 2, 2001, personal property sold
26    to a lessor who leases the property, under a lease of one

 

 

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1    year or longer executed or in effect at the time of the
2    purchase, to a governmental body that has been issued an
3    active tax exemption identification number by the
4    Department under Section 1g of this Act. This paragraph is
5    exempt from the provisions of Section 2-70.
6        (38) Beginning on January 1, 2002 and through June 30,
7    2016, tangible personal property purchased from an
8    Illinois retailer by a taxpayer engaged in centralized
9    purchasing activities in Illinois who will, upon receipt of
10    the property in Illinois, temporarily store the property in
11    Illinois (i) for the purpose of subsequently transporting
12    it outside this State for use or consumption thereafter
13    solely outside this State or (ii) for the purpose of being
14    processed, fabricated, or manufactured into, attached to,
15    or incorporated into other tangible personal property to be
16    transported outside this State and thereafter used or
17    consumed solely outside this State. The Director of Revenue
18    shall, pursuant to rules adopted in accordance with the
19    Illinois Administrative Procedure Act, issue a permit to
20    any taxpayer in good standing with the Department who is
21    eligible for the exemption under this paragraph (38). The
22    permit issued under this paragraph (38) shall authorize the
23    holder, to the extent and in the manner specified in the
24    rules adopted under this Act, to purchase tangible personal
25    property from a retailer exempt from the taxes imposed by
26    this Act. Taxpayers shall maintain all necessary books and

 

 

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1    records to substantiate the use and consumption of all such
2    tangible personal property outside of the State of
3    Illinois.
4        (39) Beginning January 1, 2008, tangible personal
5    property used in the construction or maintenance of a
6    community water supply, as defined under Section 3.145 of
7    the Environmental Protection Act, that is operated by a
8    not-for-profit corporation that holds a valid water supply
9    permit issued under Title IV of the Environmental
10    Protection Act. This paragraph is exempt from the
11    provisions of Section 2-70.
12        (40) Beginning January 1, 2010, materials, parts,
13    equipment, components, and furnishings incorporated into
14    or upon an aircraft as part of the modification,
15    refurbishment, completion, replacement, repair, or
16    maintenance of the aircraft. This exemption includes
17    consumable supplies used in the modification,
18    refurbishment, completion, replacement, repair, and
19    maintenance of aircraft, but excludes any materials,
20    parts, equipment, components, and consumable supplies used
21    in the modification, replacement, repair, and maintenance
22    of aircraft engines or power plants, whether such engines
23    or power plants are installed or uninstalled upon any such
24    aircraft. "Consumable supplies" include, but are not
25    limited to, adhesive, tape, sandpaper, general purpose
26    lubricants, cleaning solution, latex gloves, and

 

 

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1    protective films. This exemption applies only to the sale
2    of qualifying tangible personal property to persons who
3    modify, refurbish, complete, replace, or maintain an
4    aircraft and who (i) hold an Air Agency Certificate and are
5    empowered to operate an approved repair station by the
6    Federal Aviation Administration, (ii) have a Class IV
7    Rating, and (iii) conduct operations in accordance with
8    Part 145 of the Federal Aviation Regulations. The exemption
9    does not include aircraft operated by a commercial air
10    carrier providing scheduled passenger air service pursuant
11    to authority issued under Part 121 or Part 129 of the
12    Federal Aviation Regulations. The changes made to this
13    paragraph (40) by Public Act 98-534 are declarative of
14    existing law.
15        (41) Tangible personal property sold to a
16    public-facilities corporation, as described in Section
17    11-65-10 of the Illinois Municipal Code, for purposes of
18    constructing or furnishing a municipal convention hall,
19    but only if the legal title to the municipal convention
20    hall is transferred to the municipality without any further
21    consideration by or on behalf of the municipality at the
22    time of the completion of the municipal convention hall or
23    upon the retirement or redemption of any bonds or other
24    debt instruments issued by the public-facilities
25    corporation in connection with the development of the
26    municipal convention hall. This exemption includes

 

 

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1    existing public-facilities corporations as provided in
2    Section 11-65-25 of the Illinois Municipal Code. This
3    paragraph is exempt from the provisions of Section 2-70.
4        (42) Beginning January 1, 2017, menstrual pads,
5    tampons, and menstrual cups.
6        (43) Merchandise that is subject to the Rental Purchase
7    Agreement Occupation and Use Tax. The purchaser must
8    certify that the item is purchased to be rented subject to
9    a rental purchase agreement, as defined in the Rental
10    Purchase Agreement Act, and provide proof of registration
11    under the Rental Purchase Agreement Occupation and Use Tax
12    Act. This paragraph is exempt from the provisions of
13    Section 2-70.
14        (44) Beginning on January 1, 2020, qualified tangible
15    personal property used in the construction or operation of
16    a data center that has been granted a certificate of
17    exemption by the Department, whether that tangible
18    personal property is purchased by the owner, operator, or
19    tenant of the data center or by a contractor or
20    subcontractor of the owner, operator, or tenant. Data
21    centers that would have qualified for a certificate of
22    exemption prior to January 1, 2020 had this amendatory Act
23    of the 101st General Assembly been in effect, may apply for
24    and obtain an exemption for subsequent purchases of
25    computer equipment or enabling software purchased or
26    leased to upgrade, supplement, or replace computer

 

 

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1    equipment or enabling software purchased or leased in the
2    original investment that would have qualified.
3        The Department shall grant a certificate of exemption
4    under this item (44) to qualified data centers as defined
5    by subsection (b) of Section 2505-810 of the Department of
6    Revenue Law of the Civil Administrative Code of Illinois.
7        For the purposes of this item (44):
8            "Data center" means a building or a series of
9        buildings rehabilitated or constructed to house
10        working servers in one physical location or multiple
11        sites within the State of Illinois.
12            "Qualified tangible personal property" means:
13        electrical systems and equipment; climate control and
14        chilling equipment and systems; mechanical systems and
15        equipment; monitoring and secure systems; emergency
16        generators; hardware; computers; servers; data storage
17        devices; network connectivity equipment; racks;
18        cabinets; telecommunications cabling infrastructure;
19        raised floor systems; peripheral components or
20        systems; software; mechanical, electrical, or plumbing
21        systems; battery systems; cooling systems and towers;
22        temperature control systems; other cabling; and other
23        data center infrastructure equipment and systems
24        necessary to operate qualified tangible personal
25        property, including fixtures; and component parts of
26        any of the foregoing, including installation,

 

 

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1        maintenance, repair, refurbishment, and replacement of
2        qualified tangible personal property to generate,
3        transform, transmit, distribute, or manage electricity
4        necessary to operate qualified tangible personal
5        property; and all other tangible personal property
6        that is essential to the operations of a computer data
7        center. The term "qualified tangible personal
8        property" also includes building materials physically
9        incorporated in to the qualifying data center. To
10        document the exemption allowed under this Section, the
11        retailer must obtain from the purchaser a copy of the
12        certificate of eligibility issued by the Department.
13        This item (44) is exempt from the provisions of Section
14    2-70.
15(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
16100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
171-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
18100-1171, eff. 1-4-19; revised 1-8-19.)
 
19    Section 25. The Electricity Excise Tax Law is amended by
20changing Section 2-4 as follows:
 
21    (35 ILCS 640/2-4)
22    Sec. 2-4. Tax imposed.
23    (a) Except as provided in subsection (b), a tax is imposed
24on the privilege of using in this State electricity purchased

 

 

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1for use or consumption and not for resale, other than by
2municipal corporations owning and operating a local
3transportation system for public service, at the following
4rates per kilowatt-hour delivered to the purchaser:
5        (i) For the first 2000 kilowatt-hours used or consumed
6    in a month: 0.330 cents per kilowatt-hour;
7        (ii) For the next 48,000 kilowatt-hours used or
8    consumed in a month: 0.319 cents per kilowatt-hour;
9        (iii) For the next 50,000 kilowatt-hours used or
10    consumed in a month: 0.303 cents per kilowatt-hour;
11        (iv) For the next 400,000 kilowatt-hours used or
12    consumed in a month: 0.297 cents per kilowatt-hour;
13        (v) For the next 500,000 kilowatt-hours used or
14    consumed in a month: 0.286 cents per kilowatt-hour;
15        (vi) For the next 2,000,000 kilowatt-hours used or
16    consumed in a month: 0.270 cents per kilowatt-hour;
17        (vii) For the next 2,000,000 kilowatt-hours used or
18    consumed in a month: 0.254 cents per kilowatt-hour;
19        (viii) For the next 5,000,000 kilowatt-hours used or
20    consumed in a month: 0.233 cents per kilowatt-hour;
21        (ix) For the next 10,000,000 kilowatt-hours used or
22    consumed in a month: 0.207 cents per kilowatt-hour;
23        (x) For all electricity in excess of 20,000,000
24    kilowatt-hours used or consumed in a month: 0.202 cents per
25    kilowatt-hour.
26    Provided, that in lieu of the foregoing rates, the tax is

 

 

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1imposed on a self-assessing purchaser at the rate of 5.1% of
2the self-assessing purchaser's purchase price for all
3electricity distributed, supplied, furnished, sold,
4transmitted and delivered to the self-assessing purchaser in a
5month.
6    (b) A tax is imposed on the privilege of using in this
7State electricity purchased from a municipal system or electric
8cooperative, as defined in Article XVII of the Public Utilities
9Act, which has not made an election as permitted by either
10Section 17-200 or Section 17-300 of such Act, at the lesser of
110.32 cents per kilowatt hour of all electricity distributed,
12supplied, furnished, sold, transmitted, and delivered by such
13municipal system or electric cooperative to the purchaser or 5%
14of each such purchaser's purchase price for all electricity
15distributed, supplied, furnished, sold, transmitted, and
16delivered by such municipal system or electric cooperative to
17the purchaser, whichever is the lower rate as applied to each
18purchaser in each billing period.
19    (c) The tax imposed by this Section 2-4 is not imposed with
20respect to any use of electricity by business enterprises
21certified under Section 9-222.1 or 9-222.1A of the Public
22Utilities Act, as amended, to the extent of such exemption and
23during the time specified by the Department of Commerce and
24Economic Opportunity; or with respect to any transaction in
25interstate commerce, or otherwise, to the extent to which such
26transaction may not, under the Constitution and statutes of the

 

 

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1United States, be made the subject of taxation by this State.
2    (d) Beginning January 1, 2020, a business enterprise that
3is certified as a qualified data center, as defined by
4subsection (b) of the Data Center Investment Act, by the
5Department of Revenue is exempt from the tax imposed under this
6Section. The Department shall adopt rules to carry out the
7provisions of this subsection including procedures for
8applying for the exemption. The Department of Revenue shall
9notify the public utility of the exemption status of the
10business enterprise. The exemption shall take effect upon
11certification of the qualifying data center.
12(Source: P.A. 94-793, eff. 5-19-06.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.