Rep. Kambium Buckner

Filed: 4/8/2022

 

 


 

 


 
10200HB1511ham001LRB102 03527 HLH 38352 a

1
AMENDMENT TO HOUSE BILL 1511

2    AMENDMENT NO. ______. Amend House Bill 1511 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois State Auditing Act is amended by
5adding Section 6z-130 as follows:
 
6    (30 ILCS 5/6z-130 new)
7    Sec. 6z-130. Diversity, Equity, and Inclusion, Capital
8Investment, Job Growth, and Opportunities Fund.
9    (a) The Diversity, Equity, and Inclusion, Capital
10Investment, Job Growth, and Opportunities Fund is hereby
11created as a special fund in the State Treasury.
12    (b) On and after the effective date of this amendatory Act
13of the 102nd General Assembly, the tax receipts generated from
14the taxes imposed under the Use Tax Act, the Service Use Tax
15Act, the Service Occupation Tax Act, and the Retailers'
16Occupation Tax Act on the purchase by any rentor of any vehicle

 

 

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1to be used for renting shall be transferred into the
2Diversity, Equity, and Inclusion, Capital Investment, Job
3Growth, and Opportunities Fund on a monthly basis. Not later
4than the 10th day of each month, the Department of Revenue
5shall certify to the State Comptroller the amount of money
6required to be transferred from the General Revenue Fund into
7the Diversity, Equity, and Inclusion, Capital Investment, Job
8Growth, and Opportunities Fund for the period of the
9immediately preceding full calendar month. Not later than the
1015th day of each calendar month, the State Comptroller shall
11direct and the State Treasurer shall transfer the amount
12specified in the Department of Revenue's certification from
13the General Revenue Fund into the Diversity, Equity, and
14Inclusion, Capital Investment, Job Growth, and Opportunities
15Fund. For purposes of this Section, the terms "rentor" and
16"renting" shall have the same meaning as provided in Section 2
17of the Automobile Renting Occupation and Use Tax Act.
18    (c) Moneys in the Fund shall be used by the Department of
19Commerce and Economic Opportunity for the purposes specified
20in this subsection:
21        (1) to support airport and other transportation
22    infrastructure projects, which shall be selected according
23    to policies and practices, including new, innovative or
24    pilot programs, to ensure that the projects that receive
25    funding enable increased job opportunities in skilled
26    trades for historically underrepresented minority groups;

 

 

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1    and to achieve other objective milestones that the
2    demonstrate increased business and job opportunities for
3    historically underrepresented minority groups; and
4        (2) to support programs and curricula at State
5    universities and community colleges in Illinois that
6    provide training, education, apprenticeships, and related
7    services and programs that train students for future work
8    in the skilled trades with an emphasis on increasing
9    opportunities for historically underrepresented minority
10    groups.
 
11    Section 10. The Use Tax Act is amended by changing Section
123-5 as follows:
 
13    (35 ILCS 105/3-5)
14    Sec. 3-5. Exemptions. Use of the following tangible
15personal property is exempt from the tax imposed by this Act:
16    (1) Personal property purchased from a corporation,
17society, association, foundation, institution, or
18organization, other than a limited liability company, that is
19organized and operated as a not-for-profit service enterprise
20for the benefit of persons 65 years of age or older if the
21personal property was not purchased by the enterprise for the
22purpose of resale by the enterprise.
23    (2) Personal property purchased by a not-for-profit
24Illinois county fair association for use in conducting,

 

 

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1operating, or promoting the county fair.
2    (3) Personal property purchased by a not-for-profit arts
3or cultural organization that establishes, by proof required
4by the Department by rule, that it has received an exemption
5under Section 501(c)(3) of the Internal Revenue Code and that
6is organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after July 1, 2001 (the
13effective date of Public Act 92-35), however, an entity
14otherwise eligible for this exemption shall not make tax-free
15purchases unless it has an active identification number issued
16by the Department.
17    (4) Personal property purchased by a governmental body, by
18a corporation, society, association, foundation, or
19institution organized and operated exclusively for charitable,
20religious, or educational purposes, or by a not-for-profit
21corporation, society, association, foundation, institution, or
22organization that has no compensated officers or employees and
23that is organized and operated primarily for the recreation of
24persons 55 years of age or older. A limited liability company
25may qualify for the exemption under this paragraph only if the
26limited liability company is organized and operated

 

 

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1exclusively for educational purposes. On and after July 1,
21987, however, no entity otherwise eligible for this exemption
3shall make tax-free purchases unless it has an active
4exemption identification number issued by the Department.
5    (5) Until July 1, 2003, a passenger car that is a
6replacement vehicle to the extent that the purchase price of
7the car is subject to the Replacement Vehicle Tax.
8    (6) Until July 1, 2003 and beginning again on September 1,
92004 through August 30, 2014, graphic arts machinery and
10equipment, including repair and replacement parts, both new
11and used, and including that manufactured on special order,
12certified by the purchaser to be used primarily for graphic
13arts production, and including machinery and equipment
14purchased for lease. Equipment includes chemicals or chemicals
15acting as catalysts but only if the chemicals or chemicals
16acting as catalysts effect a direct and immediate change upon
17a graphic arts product. Beginning on July 1, 2017, graphic
18arts machinery and equipment is included in the manufacturing
19and assembling machinery and equipment exemption under
20paragraph (18).
21    (7) Farm chemicals.
22    (8) 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    (9) Personal property purchased from a teacher-sponsored

 

 

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

 

 

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1installed on farm machinery and equipment including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals. This item (11) is exempt from the
14provisions of Section 3-90.
15    (12) Until June 30, 2013, fuel and petroleum products sold
16to or used by an air common carrier, certified by the carrier
17to be used for consumption, shipment, or storage in the
18conduct of its business as an air common carrier, for a flight
19destined for or returning from a location or locations outside
20the United States without regard to previous or subsequent
21domestic stopovers.
22    Beginning July 1, 2013, fuel and petroleum products sold
23to or used by an air carrier, certified by the carrier to be
24used for consumption, shipment, or storage in the conduct of
25its business as an air common carrier, for a flight that (i) is
26engaged in foreign trade or is engaged in trade between the

 

 

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

 

 

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1to be used primarily for photoprocessing, and including
2photoprocessing machinery and equipment purchased for lease.
3    (16) 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    (17) Until July 1, 2003, distillation machinery and
15equipment, sold as a unit or kit, assembled or installed by the
16retailer, certified by the user to be used only for the
17production of ethyl alcohol that will be used for consumption
18as motor fuel or as a component of motor fuel for the personal
19use of the user, and not subject to sale or resale.
20    (18) Manufacturing and assembling machinery and equipment
21used primarily in the process of manufacturing or assembling
22tangible personal property for wholesale or retail sale or
23lease, whether that sale or lease is made directly by the
24manufacturer or by some other person, whether the materials
25used in the process are owned by the manufacturer or some other
26person, or whether that sale or lease is made apart from or as

 

 

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1an incident to the seller's engaging in the service occupation
2of producing machines, tools, dies, jigs, patterns, gauges, or
3other similar items of no commercial value on special order
4for a particular purchaser. The exemption provided by this
5paragraph (18) includes production related tangible personal
6property, as defined in Section 3-50, purchased on or after
7July 1, 2019. The exemption provided by this paragraph (18)
8does not include machinery and equipment used in (i) the
9generation of electricity for wholesale or retail sale; (ii)
10the generation or treatment of natural or artificial gas for
11wholesale or retail sale that is delivered to customers
12through pipes, pipelines, or mains; or (iii) the treatment of
13water for wholesale or retail sale that is delivered to
14customers through pipes, pipelines, or mains. The provisions
15of Public Act 98-583 are declaratory of existing law as to the
16meaning and scope of this exemption. Beginning on July 1,
172017, the exemption provided by this paragraph (18) includes,
18but is not limited to, graphic arts machinery and equipment,
19as defined in paragraph (6) of this Section.
20    (19) Personal property delivered to a purchaser or
21purchaser's donee inside Illinois when the purchase order for
22that personal property was received by a florist located
23outside Illinois who has a florist located inside Illinois
24deliver the personal property.
25    (20) Semen used for artificial insemination of livestock
26for direct agricultural production.

 

 

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1    (21) Horses, or interests in horses, registered with and
2meeting the requirements of any of the Arabian Horse Club
3Registry of America, Appaloosa Horse Club, American Quarter
4Horse Association, United States Trotting Association, or
5Jockey Club, as appropriate, used for purposes of breeding or
6racing for prizes. This item (21) is exempt from the
7provisions of Section 3-90, and the exemption provided for
8under this item (21) applies for all periods beginning May 30,
91995, but no claim for credit or refund is allowed on or after
10January 1, 2008 for such taxes paid during the period
11beginning May 30, 2000 and ending on January 1, 2008.
12    (22) Computers and communications equipment utilized for
13any hospital purpose and equipment used in the diagnosis,
14analysis, or treatment of hospital patients purchased by a
15lessor who leases the equipment, under a lease of one year or
16longer executed or in effect at the time the lessor would
17otherwise be subject to the tax imposed by this Act, to a
18hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of
20the Retailers' Occupation Tax Act. If the equipment is leased
21in a manner that does not qualify for this exemption or is used
22in any other non-exempt manner, the lessor shall be liable for
23the tax imposed under this Act or the Service Use Tax Act, as
24the case may be, based on the fair market value of the property
25at the time the non-qualifying use occurs. No lessor shall
26collect or attempt to collect an amount (however designated)

 

 

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

 

 

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1lessor. If, however, that amount is not refunded to the lessee
2for any reason, the lessor is liable to pay that amount to the
3Department.
4    (24) 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
7for disaster 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    (25) 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
17the performance of infrastructure repairs in this State,
18including but not limited to municipal roads and streets,
19access roads, bridges, sidewalks, waste disposal systems,
20water and sewer line extensions, water distribution and
21purification facilities, storm water drainage and retention
22facilities, and sewage treatment facilities, resulting from a
23State or federally declared disaster in Illinois or bordering
24Illinois when such repairs are initiated on facilities located
25in the declared disaster area within 6 months after the
26disaster.

 

 

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1    (26) Beginning July 1, 1999, game or game birds purchased
2at a "game breeding and hunting preserve area" as that term is
3used in the Wildlife Code. This paragraph is exempt from the
4provisions of Section 3-90.
5    (27) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the
9Department to be organized and operated exclusively for
10educational purposes. For purposes of this exemption, "a
11corporation, limited liability company, society, association,
12foundation, or institution organized and operated exclusively
13for educational purposes" means all tax-supported public
14schools, private schools that offer systematic instruction in
15useful branches of learning by methods common to public
16schools and that compare favorably in their scope and
17intensity with the course of study presented in tax-supported
18schools, and vocational or technical schools or institutes
19organized and operated exclusively to provide a course of
20study of not less than 6 weeks duration and designed to prepare
21individuals to follow a trade or to pursue a manual,
22technical, mechanical, industrial, business, or commercial
23occupation.
24    (28) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-90.
12    (29) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and
15other items, and replacement parts for these machines.
16Beginning January 1, 2002 and through June 30, 2003, machines
17and parts for machines used in commercial, coin-operated
18amusement and vending business if a use or occupation tax is
19paid on the gross receipts derived from the use of the
20commercial, coin-operated amusement and vending machines. This
21paragraph is exempt from the provisions of Section 3-90.
22    (30) Beginning January 1, 2001 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages,
25soft drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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

 

 

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

 

 

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1lessor. If, however, that amount is not refunded to the lessee
2for any reason, the lessor is liable to pay that amount to the
3Department. This paragraph is exempt from the provisions of
4Section 3-90.
5    (33) On and after July 1, 2003 and through June 30, 2004,
6the use in this State of motor vehicles of the second division
7with a gross vehicle weight in excess of 8,000 pounds and that
8are subject to the commercial distribution fee imposed under
9Section 3-815.1 of the Illinois Vehicle Code. Beginning on
10July 1, 2004 and through June 30, 2005, the use in this State
11of motor vehicles of the second division: (i) with a gross
12vehicle weight rating in excess of 8,000 pounds; (ii) that are
13subject to the commercial distribution fee imposed under
14Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
15are primarily used for commercial purposes. Through June 30,
162005, this exemption applies to repair and replacement parts
17added after the initial purchase of such a motor vehicle if
18that motor vehicle is used in a manner that would qualify for
19the rolling stock exemption otherwise provided for in this
20Act. For purposes of this paragraph, the term "used for
21commercial purposes" means the transportation of persons or
22property in furtherance of any commercial or industrial
23enterprise, whether for-hire or not.
24    (34) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued
3under Title IV of the Environmental Protection Act. This
4paragraph is exempt from the provisions of Section 3-90.
5    (35) Beginning January 1, 2010 and continuing through
6December 31, 2024, materials, parts, equipment, components,
7and furnishings incorporated into or upon an aircraft as part
8of the modification, refurbishment, completion, replacement,
9repair, or maintenance of the aircraft. This exemption
10includes consumable supplies used in the modification,
11refurbishment, completion, replacement, repair, and
12maintenance of aircraft, but excludes any materials, parts,
13equipment, components, and consumable supplies used in the
14modification, replacement, repair, and maintenance of aircraft
15engines or power plants, whether such engines or power plants
16are installed or uninstalled upon any such aircraft.
17"Consumable supplies" include, but are not limited to,
18adhesive, tape, sandpaper, general purpose lubricants,
19cleaning solution, latex gloves, and protective films. This
20exemption applies only to the use of qualifying tangible
21personal property by persons who modify, refurbish, complete,
22repair, replace, or maintain aircraft and 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.

 

 

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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
4129 of the Federal Aviation Regulations. The changes made to
5this paragraph (35) by Public Act 98-534 are declarative of
6existing law. It is the intent of the General Assembly that the
7exemption under this paragraph (35) applies continuously from
8January 1, 2010 through December 31, 2024; however, no claim
9for credit or refund is allowed for taxes paid as a result of
10the disallowance of this exemption on or after January 1, 2015
11and prior to the effective date of this amendatory Act of the
12101st General Assembly.
13    (36) Tangible personal property purchased by a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt
22instruments issued by the public-facilities corporation in
23connection with the development of the municipal convention
24hall. This exemption includes existing public-facilities
25corporations as provided in Section 11-65-25 of the Illinois
26Municipal Code. This paragraph is exempt from the provisions

 

 

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1of Section 3-90.
2    (37) Beginning January 1, 2017 and through December 31,
32026, menstrual pads, tampons, and menstrual cups.
4    (38) Merchandise that is subject to the Rental Purchase
5Agreement Occupation and Use Tax. The purchaser must certify
6that the item is purchased to be rented subject to a rental
7purchase agreement, as defined in the Rental Purchase
8Agreement Act, and provide proof of registration under the
9Rental Purchase Agreement Occupation and Use Tax Act. This
10paragraph is exempt from the provisions of Section 3-90.
11    (39) Tangible personal property purchased by a purchaser
12who is exempt from the tax imposed by this Act by operation of
13federal law. This paragraph is exempt from the provisions of
14Section 3-90.
15    (40) Qualified tangible personal property used in the
16construction or operation of a data center that has been
17granted a certificate of exemption by the Department of
18Commerce and Economic Opportunity, whether that tangible
19personal property is purchased by the owner, operator, or
20tenant of the data center or by a contractor or subcontractor
21of the owner, operator, or tenant. Data centers that would
22have qualified for a certificate of exemption prior to January
231, 2020 had Public Act 101-31 been in effect may apply for and
24obtain an exemption for subsequent purchases of computer
25equipment or enabling software purchased or leased to upgrade,
26supplement, or replace computer equipment or enabling software

 

 

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1purchased or leased in the original investment that would have
2qualified.
3    The Department of Commerce and Economic Opportunity shall
4grant a certificate of exemption under this item (40) to
5qualified data centers as defined by Section 605-1025 of the
6Department of Commerce and Economic Opportunity Law of the
7Civil Administrative Code of Illinois.
8    For the purposes of this item (40):
9        "Data center" means a building or a series of
10    buildings rehabilitated or constructed to house working
11    servers in one physical location or multiple sites within
12    the State of Illinois.
13        "Qualified tangible personal property" means:
14    electrical systems and equipment; climate control and
15    chilling equipment and systems; mechanical systems and
16    equipment; monitoring and secure systems; emergency
17    generators; hardware; computers; servers; data storage
18    devices; network connectivity equipment; racks; cabinets;
19    telecommunications cabling infrastructure; raised floor
20    systems; peripheral components or systems; software;
21    mechanical, electrical, or plumbing systems; battery
22    systems; cooling systems and towers; temperature control
23    systems; other cabling; and other data center
24    infrastructure equipment and systems necessary to operate
25    qualified tangible personal property, including fixtures;
26    and component parts of any of the foregoing, including

 

 

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1    installation, maintenance, repair, refurbishment, and
2    replacement of qualified tangible personal property to
3    generate, transform, transmit, distribute, or manage
4    electricity necessary to operate qualified tangible
5    personal property; and all other tangible personal
6    property that is essential to the operations of a computer
7    data center. The term "qualified tangible personal
8    property" also includes building materials physically
9    incorporated in to the qualifying data center. To document
10    the exemption allowed under this Section, the retailer
11    must obtain from the purchaser a copy of the certificate
12    of eligibility issued by the Department of Commerce and
13    Economic Opportunity.
14    This item (40) is exempt from the provisions of Section
153-90.
16(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
17101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
186-17-21.)
 
19    (35 ILCS 105/1a rep.)
20    Section 15. The Use Tax Act is amended by repealing
21Section 1a.
 
22    Section 20. The Retailers' Occupation Tax Act is amended
23by changing Section 2-5 as follows:
 

 

 

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

 

 

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1        Farm machinery and equipment shall include precision
2    farming equipment that is installed or purchased to be
3    installed on farm machinery and equipment including, but
4    not limited to, tractors, harvesters, sprayers, planters,
5    seeders, or spreaders. Precision farming equipment
6    includes, but is not limited to, soil testing sensors,
7    computers, monitors, software, global positioning and
8    mapping systems, and other such equipment.
9        Farm machinery and equipment also includes computers,
10    sensors, software, and related equipment used primarily in
11    the computer-assisted operation of production agriculture
12    facilities, equipment, and activities such as, but not
13    limited to, the collection, monitoring, and correlation of
14    animal and crop data for the purpose of formulating animal
15    diets and agricultural chemicals. This item (2) is exempt
16    from the provisions of Section 2-70.
17        (3) Until July 1, 2003, distillation machinery and
18    equipment, sold as a unit or kit, assembled or installed
19    by the retailer, certified by the user to be used only for
20    the production of ethyl alcohol that will be used for
21    consumption as motor fuel or as a component of motor fuel
22    for the personal use of the user, and not subject to sale
23    or resale.
24        (4) Until July 1, 2003 and beginning again September
25    1, 2004 through August 30, 2014, graphic arts machinery
26    and equipment, including repair and replacement parts,

 

 

10200HB1511ham001- 26 -LRB102 03527 HLH 38352 a

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

 

 

10200HB1511ham001- 27 -LRB102 03527 HLH 38352 a

1    exemption under Section 501(c)(3) of the Internal Revenue
2    Code and that is organized and operated primarily for the
3    presentation or support of arts or cultural programming,
4    activities, or services. These organizations include, but
5    are not limited to, music and dramatic arts organizations
6    such as symphony orchestras and theatrical groups, arts
7    and cultural service organizations, local arts councils,
8    visual arts organizations, and media arts organizations.
9    On and after July 1, 2001 (the effective date of Public Act
10    92-35), however, an entity otherwise eligible for this
11    exemption shall not make tax-free purchases unless it has
12    an active identification number issued by the Department.
13        (10) Personal property sold by a corporation, society,
14    association, foundation, institution, or organization,
15    other than a limited liability company, that is organized
16    and operated as a not-for-profit service enterprise for
17    the benefit of persons 65 years of age or older if the
18    personal property was not purchased by the enterprise for
19    the purpose of resale by the enterprise.
20        (11) Personal property sold to a governmental body, to
21    a corporation, society, association, foundation, or
22    institution organized and operated exclusively for
23    charitable, religious, or educational purposes, or to a
24    not-for-profit corporation, society, association,
25    foundation, institution, or organization that has no
26    compensated officers or employees and that is organized

 

 

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

 

 

10200HB1511ham001- 29 -LRB102 03527 HLH 38352 a

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

 

 

10200HB1511ham001- 30 -LRB102 03527 HLH 38352 a

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

 

 

10200HB1511ham001- 31 -LRB102 03527 HLH 38352 a

1    the property, or shares with another common carrier in the
2    transportation of the property, out of Illinois on a
3    standard uniform bill of lading showing the seller of the
4    property as the shipper or consignor of the property to a
5    destination outside Illinois, for use outside Illinois.
6        (18) Legal tender, currency, medallions, or gold or
7    silver coinage issued by the State of Illinois, the
8    government of the United States of America, or the
9    government of any foreign country, and bullion.
10        (19) Until July 1, 2003, oil field exploration,
11    drilling, and production equipment, including (i) rigs and
12    parts of rigs, rotary rigs, cable tool rigs, and workover
13    rigs, (ii) pipe and tubular goods, including casing and
14    drill strings, (iii) pumps and pump-jack units, (iv)
15    storage tanks and flow lines, (v) any individual
16    replacement part for oil field exploration, drilling, and
17    production equipment, and (vi) machinery and equipment
18    purchased for lease; but excluding motor vehicles required
19    to be registered under the Illinois Vehicle Code.
20        (20) Photoprocessing machinery and equipment,
21    including repair and replacement parts, both new and used,
22    including that manufactured on special order, certified by
23    the purchaser to be used primarily for photoprocessing,
24    and including photoprocessing machinery and equipment
25    purchased for lease.
26        (21) Until July 1, 2023, coal and aggregate

 

 

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

 

 

10200HB1511ham001- 33 -LRB102 03527 HLH 38352 a

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

 

 

10200HB1511ham001- 34 -LRB102 03527 HLH 38352 a

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

 

 

10200HB1511ham001- 35 -LRB102 03527 HLH 38352 a

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

 

 

10200HB1511ham001- 36 -LRB102 03527 HLH 38352 a

1        require.
2        For purposes of this item (25-7):
3        "Based in this State" means hangared, stored, or
4    otherwise used, excluding post-sale customizations as
5    defined in this Section, for 10 or more days in each
6    12-month period immediately following the date of the sale
7    of the aircraft.
8        "Registered in this State" means an aircraft
9    registered with the Department of Transportation,
10    Aeronautics Division, or titled or registered with the
11    Federal Aviation Administration to an address located in
12    this State.
13        This paragraph (25-7) is exempt from the provisions of
14    Section 2-70.
15        (26) Semen used for artificial insemination of
16    livestock for direct agricultural production.
17        (27) Horses, or interests in horses, registered with
18    and meeting the requirements of any of the Arabian Horse
19    Club Registry of America, Appaloosa Horse Club, American
20    Quarter Horse Association, United States Trotting
21    Association, or Jockey Club, as appropriate, used for
22    purposes of breeding or racing for prizes. This item (27)
23    is exempt from the provisions of Section 2-70, and the
24    exemption provided for under this item (27) applies for
25    all periods beginning May 30, 1995, but no claim for
26    credit or refund is allowed on or after January 1, 2008

 

 

10200HB1511ham001- 37 -LRB102 03527 HLH 38352 a

1    (the effective date of Public Act 95-88) for such taxes
2    paid during the period beginning May 30, 2000 and ending
3    on January 1, 2008 (the effective date of Public Act
4    95-88).
5        (28) Computers and communications equipment utilized
6    for any hospital purpose and equipment used in the
7    diagnosis, analysis, or treatment of hospital patients
8    sold to a lessor who leases the equipment, under a lease of
9    one year or longer executed or in effect at the time of the
10    purchase, to a hospital that has been issued an active tax
11    exemption identification number by the Department under
12    Section 1g of this Act.
13        (29) Personal property sold to a lessor who leases the
14    property, under a lease of one year or longer executed or
15    in effect at the time of the purchase, to a governmental
16    body that has been issued an active tax exemption
17    identification number by the Department under Section 1g
18    of this Act.
19        (30) Beginning with taxable years ending on or after
20    December 31, 1995 and ending with taxable years ending on
21    or before December 31, 2004, personal property that is
22    donated for disaster relief to be used in a State or
23    federally declared disaster area in Illinois or bordering
24    Illinois by a manufacturer or retailer that is registered
25    in this State to a corporation, society, association,
26    foundation, or institution that has been issued a sales

 

 

10200HB1511ham001- 38 -LRB102 03527 HLH 38352 a

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

 

 

10200HB1511ham001- 39 -LRB102 03527 HLH 38352 a

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

 

 

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

 

 

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

 

 

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1    thereafter solely outside this State or (ii) for the
2    purpose of being processed, fabricated, or manufactured
3    into, attached to, or incorporated into other tangible
4    personal property to be transported outside this State and
5    thereafter used or consumed solely outside this State. The
6    Director of Revenue shall, pursuant to rules adopted in
7    accordance with the Illinois Administrative Procedure Act,
8    issue a permit to any taxpayer in good standing with the
9    Department who is eligible for the exemption under this
10    paragraph (38). The permit issued under this paragraph
11    (38) shall authorize the holder, to the extent and in the
12    manner specified in the rules adopted under this Act, to
13    purchase tangible personal property from a retailer exempt
14    from the taxes imposed by this Act. Taxpayers shall
15    maintain all necessary books and records to substantiate
16    the use and consumption of all such tangible personal
17    property outside of the State of Illinois.
18        (39) Beginning January 1, 2008, tangible personal
19    property used in the construction or maintenance of a
20    community water supply, as defined under Section 3.145 of
21    the Environmental Protection Act, that is operated by a
22    not-for-profit corporation that holds a valid water supply
23    permit issued under Title IV of the Environmental
24    Protection Act. This paragraph is exempt from the
25    provisions of Section 2-70.
26        (40) Beginning January 1, 2010 and continuing through

 

 

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1    December 31, 2024, materials, parts, equipment,
2    components, and furnishings incorporated into or upon an
3    aircraft as part of the modification, refurbishment,
4    completion, replacement, repair, or maintenance of the
5    aircraft. This exemption includes consumable supplies used
6    in the modification, refurbishment, completion,
7    replacement, repair, and maintenance of aircraft, but
8    excludes any materials, parts, equipment, components, and
9    consumable supplies used in the modification, replacement,
10    repair, and maintenance of aircraft engines or power
11    plants, whether such engines or power plants are installed
12    or uninstalled upon any such aircraft. "Consumable
13    supplies" include, but are not limited to, adhesive, tape,
14    sandpaper, general purpose lubricants, cleaning solution,
15    latex gloves, and protective films. This exemption applies
16    only to the sale of qualifying tangible personal property
17    to persons who modify, refurbish, complete, replace, or
18    maintain an aircraft and who (i) hold an Air Agency
19    Certificate and are empowered to operate an approved
20    repair station by the Federal Aviation Administration,
21    (ii) have a Class IV Rating, and (iii) conduct operations
22    in accordance with Part 145 of the Federal Aviation
23    Regulations. The exemption does not include aircraft
24    operated by a commercial air carrier providing scheduled
25    passenger air service pursuant to authority issued under
26    Part 121 or Part 129 of the Federal Aviation Regulations.

 

 

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1    The changes made to this paragraph (40) by Public Act
2    98-534 are declarative of existing law. It is the intent
3    of the General Assembly that the exemption under this
4    paragraph (40) applies continuously from January 1, 2010
5    through December 31, 2024; however, no claim for credit or
6    refund is allowed for taxes paid as a result of the
7    disallowance of this exemption on or after January 1, 2015
8    and prior to the effective date of this amendatory Act of
9    the 101st General Assembly.
10        (41) Tangible personal property sold to a
11    public-facilities corporation, as described in Section
12    11-65-10 of the Illinois Municipal Code, for purposes of
13    constructing or furnishing a municipal convention hall,
14    but only if the legal title to the municipal convention
15    hall is transferred to the municipality without any
16    further consideration by or on behalf of the municipality
17    at the time of the completion of the municipal convention
18    hall or upon the retirement or redemption of any bonds or
19    other debt instruments issued by the public-facilities
20    corporation in connection with the development of the
21    municipal convention hall. This exemption includes
22    existing public-facilities corporations as provided in
23    Section 11-65-25 of the Illinois Municipal Code. This
24    paragraph is exempt from the provisions of Section 2-70.
25        (42) Beginning January 1, 2017 and through December
26    31, 2026, menstrual pads, tampons, and menstrual cups.

 

 

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

 

 

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1    605-1025 of the Department of Commerce and Economic
2    Opportunity Law of the Civil Administrative Code of
3    Illinois.
4        For the purposes of this item (44):
5            "Data center" means a building or a series of
6        buildings rehabilitated or constructed to house
7        working servers in one physical location or multiple
8        sites within the State of 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;
15        cabinets; telecommunications cabling infrastructure;
16        raised floor systems; peripheral components or
17        systems; software; mechanical, electrical, or plumbing
18        systems; battery systems; cooling systems and towers;
19        temperature control systems; other cabling; and other
20        data center infrastructure equipment and systems
21        necessary to operate qualified tangible personal
22        property, including fixtures; and component parts of
23        any of the foregoing, including installation,
24        maintenance, repair, refurbishment, and replacement of
25        qualified tangible personal property to generate,
26        transform, transmit, distribute, or manage electricity

 

 

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1        necessary to operate qualified tangible personal
2        property; and all other tangible personal property
3        that is essential to the operations of a computer data
4        center. The term "qualified tangible personal
5        property" also includes building materials physically
6        incorporated into in to the qualifying data center. To
7        document the exemption allowed under this Section, the
8        retailer must obtain from the purchaser a copy of the
9        certificate of eligibility issued by the Department of
10        Commerce and Economic Opportunity.
11        This item (44) is exempt from the provisions of
12    Section 2-70.
13        (45) Beginning January 1, 2020 and through December
14    31, 2020, sales of tangible personal property made by a
15    marketplace seller over a marketplace for which tax is due
16    under this Act but for which use tax has been collected and
17    remitted to the Department by a marketplace facilitator
18    under Section 2d of the Use Tax Act are exempt from tax
19    under this Act. A marketplace seller claiming this
20    exemption shall maintain books and records demonstrating
21    that the use tax on such sales has been collected and
22    remitted by a marketplace facilitator. Marketplace sellers
23    that have properly remitted tax under this Act on such
24    sales may file a claim for credit as provided in Section 6
25    of this Act. No claim is allowed, however, for such taxes
26    for which a credit or refund has been issued to the

 

 

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1    marketplace facilitator under the Use Tax Act, or for
2    which the marketplace facilitator has filed a claim for
3    credit or refund under the Use Tax Act.
4(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
5101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
68-27-21; revised 11-9-21.)".