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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Use Tax Act is amended by changing Section |
5 | | 3-5 as follows:
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6 | | (35 ILCS 105/3-5)
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7 | | Sec. 3-5. Exemptions. Use of the following tangible |
8 | | personal property is exempt from the tax imposed by this Act:
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9 | | (1) Personal property purchased from a corporation, |
10 | | society, association,
foundation, institution, or |
11 | | organization, other than a limited liability
company, that is |
12 | | organized and operated as a not-for-profit service enterprise
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13 | | for the benefit of persons 65 years of age or older if the |
14 | | personal property was not purchased by the enterprise for the |
15 | | purpose of resale by the
enterprise.
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16 | | (2) Personal property purchased by a not-for-profit |
17 | | Illinois county
fair association for use in conducting, |
18 | | operating, or promoting the
county fair.
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19 | | (3) Personal property purchased by a not-for-profit
arts |
20 | | or cultural organization that establishes, by proof required |
21 | | by the
Department by
rule, that it has received an exemption |
22 | | under Section 501(c)(3) of the Internal
Revenue Code and that |
23 | | is organized and operated primarily for the
presentation
or |
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1 | | support of arts or cultural programming, activities, or |
2 | | services. These
organizations include, but are not limited to, |
3 | | music and dramatic arts
organizations such as symphony |
4 | | orchestras and theatrical groups, arts and
cultural service |
5 | | organizations, local arts councils, visual arts organizations,
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6 | | and media arts organizations.
On and after July 1, 2001 (the |
7 | | effective date of Public Act 92-35), however, an entity |
8 | | otherwise eligible for this exemption shall not
make tax-free |
9 | | purchases unless it has an active identification number issued |
10 | | by
the Department.
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11 | | (4) Personal property purchased by a governmental body, by |
12 | | a
corporation, society, association, foundation, or |
13 | | institution organized and
operated exclusively for charitable, |
14 | | religious, or educational purposes, or
by a not-for-profit |
15 | | corporation, society, association, foundation,
institution, or |
16 | | organization that has no compensated officers or employees
and |
17 | | that is organized and operated primarily for the recreation of |
18 | | persons
55 years of age or older. A limited liability company |
19 | | may qualify for the
exemption under this paragraph only if the |
20 | | limited liability company is
organized and operated |
21 | | exclusively for educational purposes. On and after July
1, |
22 | | 1987, however, no entity otherwise eligible for this exemption |
23 | | shall make
tax-free purchases unless it has an active |
24 | | exemption identification number
issued by the Department.
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25 | | (5) Until July 1, 2003, a passenger car that is a |
26 | | replacement vehicle to
the extent that the
purchase price of |
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1 | | the car is subject to the Replacement Vehicle Tax.
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2 | | (6) Until July 1, 2003 and beginning again on September 1, |
3 | | 2004 through August 30, 2014, graphic arts machinery and |
4 | | equipment, including
repair and replacement
parts, both new |
5 | | and used, and including that manufactured on special order,
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6 | | certified by the purchaser to be used primarily for graphic |
7 | | arts production,
and including machinery and equipment |
8 | | purchased for lease.
Equipment includes chemicals or chemicals |
9 | | acting as catalysts but only if
the
chemicals or chemicals |
10 | | acting as catalysts effect a direct and immediate change
upon |
11 | | a graphic arts product. Beginning on July 1, 2017, graphic |
12 | | arts machinery and equipment is included in the manufacturing |
13 | | and assembling machinery and equipment exemption under |
14 | | paragraph (18).
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15 | | (7) Farm chemicals.
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16 | | (8) Legal tender, currency, medallions, or gold or silver |
17 | | coinage issued by
the State of Illinois, the government of the |
18 | | United States of America, or the
government of any foreign |
19 | | country, and bullion.
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20 | | (9) Personal property purchased from a teacher-sponsored |
21 | | student
organization affiliated with an elementary or |
22 | | secondary school located in
Illinois.
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23 | | (10) A motor vehicle that is used for automobile renting, |
24 | | as defined in the
Automobile Renting Occupation and Use Tax |
25 | | Act.
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26 | | (11) Farm machinery and equipment, both new and used,
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1 | | including that manufactured on special order, certified by the |
2 | | purchaser
to be used primarily for production agriculture or |
3 | | State or federal
agricultural programs, including individual |
4 | | replacement parts for
the machinery and equipment, including |
5 | | machinery and equipment
purchased
for lease,
and including |
6 | | implements of husbandry defined in Section 1-130 of
the |
7 | | Illinois Vehicle Code, farm machinery and agricultural |
8 | | chemical and
fertilizer spreaders, and nurse wagons required |
9 | | to be registered
under Section 3-809 of the Illinois Vehicle |
10 | | Code,
but excluding other motor
vehicles required to be
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11 | | registered under the Illinois Vehicle Code.
Horticultural |
12 | | polyhouses or hoop houses used for propagating, growing, or
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13 | | overwintering plants shall be considered farm machinery and |
14 | | equipment under
this item (11).
Agricultural chemical tender |
15 | | tanks and dry boxes shall include units sold
separately from a |
16 | | motor vehicle required to be licensed and units sold mounted
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17 | | on a motor vehicle required to be licensed if the selling price |
18 | | of the tender
is separately stated.
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19 | | Farm machinery and equipment shall include precision |
20 | | farming equipment
that is
installed or purchased to be |
21 | | installed on farm machinery and equipment
including, but not |
22 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
23 | | or spreaders.
Precision farming equipment includes, but is not |
24 | | limited to, soil testing
sensors, computers, monitors, |
25 | | software, global positioning
and mapping systems, and other |
26 | | such equipment.
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1 | | Farm machinery and equipment also includes computers, |
2 | | sensors, software, and
related equipment used primarily in the
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3 | | computer-assisted operation of production agriculture |
4 | | facilities, equipment,
and
activities such as, but not limited |
5 | | to,
the collection, monitoring, and correlation of
animal and |
6 | | crop data for the purpose of
formulating animal diets and |
7 | | agricultural chemicals. This item (11) is exempt
from the |
8 | | provisions of
Section 3-90.
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9 | | (12) Until June 30, 2013, fuel and petroleum products sold |
10 | | to or used by an air common
carrier, certified by the carrier |
11 | | to be used for consumption, shipment, or
storage in the |
12 | | conduct of its business as an air common carrier, for a
flight |
13 | | destined for or returning from a location or locations
outside |
14 | | the United States without regard to previous or subsequent |
15 | | domestic
stopovers.
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16 | | Beginning July 1, 2013, fuel and petroleum products sold |
17 | | to or used by an air carrier, certified by the carrier to be |
18 | | used for consumption, shipment, or storage in the conduct of |
19 | | its business as an air common carrier, for a flight that (i) is |
20 | | engaged in foreign trade or is engaged in trade between the |
21 | | United States and any of its possessions and (ii) transports |
22 | | at least one individual or package for hire from the city of |
23 | | origination to the city of final destination on the same |
24 | | aircraft, without regard to a change in the flight number of |
25 | | that aircraft. |
26 | | (13) Proceeds of mandatory service charges separately
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1 | | stated on customers' bills for the purchase and consumption of |
2 | | food and
beverages purchased at retail from a retailer, to the |
3 | | extent that the proceeds
of the service charge are in fact |
4 | | turned over as tips or as a substitute
for tips to the |
5 | | employees who participate directly in preparing, serving,
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6 | | hosting or cleaning up the food or beverage function with |
7 | | respect to which
the service charge is imposed.
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8 | | (14) Until July 1, 2003, oil field exploration, drilling, |
9 | | and production
equipment,
including (i) rigs and parts of |
10 | | rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) |
11 | | pipe and tubular goods,
including casing and drill strings, |
12 | | (iii) pumps and pump-jack units, (iv)
storage tanks and flow |
13 | | lines, (v) any individual replacement part for oil
field |
14 | | exploration, drilling, and production equipment, and (vi) |
15 | | machinery and
equipment purchased
for lease; but excluding |
16 | | motor vehicles required to be registered under the
Illinois |
17 | | Vehicle Code.
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18 | | (15) Photoprocessing machinery and equipment, including |
19 | | repair and
replacement parts, both new and used, including |
20 | | that
manufactured on special order, certified by the purchaser |
21 | | to be used
primarily for photoprocessing, and including
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22 | | photoprocessing machinery and equipment purchased for lease.
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23 | | (16) Until July 1, 2028, coal and aggregate exploration, |
24 | | mining, off-highway hauling,
processing, maintenance, and |
25 | | reclamation equipment,
including replacement parts and |
26 | | equipment, and
including equipment purchased for lease, but |
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1 | | excluding motor
vehicles required to be registered under the |
2 | | Illinois Vehicle Code. The changes made to this Section by |
3 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
4 | | for credit or refund is allowed on or after August 16, 2013 |
5 | | (the effective date of Public Act 98-456)
for such taxes paid |
6 | | during the period beginning July 1, 2003 and ending on August |
7 | | 16, 2013 (the effective date of Public Act 98-456).
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8 | | (17) Until July 1, 2003, distillation machinery and |
9 | | equipment, sold as a
unit or kit,
assembled or installed by the |
10 | | retailer, certified by the user to be used
only for the |
11 | | production of ethyl alcohol that will be used for consumption
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12 | | as motor fuel or as a component of motor fuel for the personal |
13 | | use of the
user, and not subject to sale or resale.
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14 | | (18) Manufacturing and assembling machinery and equipment |
15 | | used
primarily in the process of manufacturing or assembling |
16 | | tangible
personal property for wholesale or retail sale or |
17 | | lease, whether that sale
or lease is made directly by the |
18 | | manufacturer or by some other person,
whether the materials |
19 | | used in the process are
owned by the manufacturer or some other |
20 | | person, or whether that sale or
lease is made apart from or as |
21 | | an incident to the seller's engaging in
the service occupation |
22 | | of producing machines, tools, dies, jigs,
patterns, gauges, or |
23 | | other similar items of no commercial value on
special order |
24 | | for a particular purchaser. The exemption provided by this |
25 | | paragraph (18) includes production related tangible personal |
26 | | property, as defined in Section 3-50, purchased on or after |
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1 | | July 1, 2019. The exemption provided by this paragraph (18) |
2 | | does not include machinery and equipment used in (i) the |
3 | | generation of electricity for wholesale or retail sale; (ii) |
4 | | the generation or treatment of natural or artificial gas for |
5 | | wholesale or retail sale that is delivered to customers |
6 | | through pipes, pipelines, or mains; or (iii) the treatment of |
7 | | water for wholesale or retail sale that is delivered to |
8 | | customers through pipes, pipelines, or mains. The provisions |
9 | | of Public Act 98-583 are declaratory of existing law as to the |
10 | | meaning and scope of this exemption. Beginning on July 1, |
11 | | 2017, the exemption provided by this paragraph (18) includes, |
12 | | but is not limited to, graphic arts machinery and equipment, |
13 | | as defined in paragraph (6) of this Section.
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14 | | (19) Personal property delivered to a purchaser or |
15 | | purchaser's donee
inside Illinois when the purchase order for |
16 | | that personal property was
received by a florist located |
17 | | outside Illinois who has a florist located
inside Illinois |
18 | | deliver the personal property.
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19 | | (20) Semen used for artificial insemination of livestock |
20 | | for direct
agricultural production.
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21 | | (21) Horses, or interests in horses, registered with and |
22 | | meeting the
requirements of any of the
Arabian Horse Club |
23 | | Registry of America, Appaloosa Horse Club, American Quarter
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24 | | Horse Association, United States
Trotting Association, or |
25 | | Jockey Club, as appropriate, used for
purposes of breeding or |
26 | | racing for prizes. This item (21) is exempt from the |
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1 | | provisions of Section 3-90, and the exemption provided for |
2 | | under this item (21) applies for all periods beginning May 30, |
3 | | 1995, but no claim for credit or refund is allowed on or after |
4 | | January 1, 2008
for such taxes paid during the period |
5 | | beginning May 30, 2000 and ending on January 1, 2008.
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6 | | (22) Computers and communications equipment utilized for |
7 | | any
hospital
purpose
and equipment used in the diagnosis,
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8 | | analysis, or treatment of hospital patients purchased by a |
9 | | lessor who leases
the
equipment, under a lease of one year or |
10 | | longer executed or in effect at the
time the lessor would |
11 | | otherwise be subject to the tax imposed by this Act, to a
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12 | | hospital
that has been issued an active tax exemption |
13 | | identification number by
the
Department under Section 1g of |
14 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
15 | | in a manner that does not qualify for
this exemption or is used |
16 | | in any other non-exempt manner, the lessor
shall be liable for |
17 | | the
tax imposed under this Act or the Service Use Tax Act, as |
18 | | the case may
be, based on the fair market value of the property |
19 | | at the time the
non-qualifying use occurs. No lessor shall |
20 | | collect or attempt to collect an
amount (however
designated) |
21 | | that purports to reimburse that lessor for the tax imposed by |
22 | | this
Act or the Service Use Tax Act, as the case may be, if the |
23 | | tax has not been
paid by the lessor. If a lessor improperly |
24 | | collects any such amount from the
lessee, the lessee shall |
25 | | have a legal right to claim a refund of that amount
from the |
26 | | lessor. If, however, that amount is not refunded to the lessee |
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1 | | for
any reason, the lessor is liable to pay that amount to the |
2 | | Department.
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3 | | (23) Personal property purchased by a lessor who leases |
4 | | the
property, under
a
lease of
one year or longer executed or |
5 | | in effect at the time
the lessor would otherwise be subject to |
6 | | the tax imposed by this Act,
to a governmental body
that has |
7 | | been issued an active sales tax exemption identification |
8 | | number by the
Department under Section 1g of the Retailers' |
9 | | Occupation Tax Act.
If the
property is leased in a manner that |
10 | | does not qualify for
this exemption
or used in any other |
11 | | non-exempt manner, the lessor shall be liable for the
tax |
12 | | imposed under this Act or the Service Use Tax Act, as the case |
13 | | may
be, based on the fair market value of the property at the |
14 | | time the
non-qualifying use occurs. No lessor shall collect or |
15 | | attempt to collect an
amount (however
designated) that |
16 | | purports to reimburse that lessor for the tax imposed by this
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17 | | Act or the Service Use Tax Act, as the case may be, if the tax |
18 | | has not been
paid by the lessor. If a lessor improperly |
19 | | collects any such amount from the
lessee, the lessee shall |
20 | | have a legal right to claim a refund of that amount
from the |
21 | | lessor. If, however, that amount is not refunded to the lessee |
22 | | for
any reason, the lessor is liable to pay that amount to the |
23 | | Department.
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24 | | (24) Beginning with taxable years ending on or after |
25 | | December
31, 1995
and
ending with taxable years ending on or |
26 | | before December 31, 2004,
personal property that is
donated |
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1 | | for disaster relief to be used in a State or federally declared
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2 | | disaster area in Illinois or bordering Illinois by a |
3 | | manufacturer or retailer
that is registered in this State to a |
4 | | corporation, society, association,
foundation, or institution |
5 | | that has been issued a sales tax exemption
identification |
6 | | number by the Department that assists victims of the disaster
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7 | | who reside within the declared disaster area.
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8 | | (25) Beginning with taxable years ending on or after |
9 | | December
31, 1995 and
ending with taxable years ending on or |
10 | | before December 31, 2004, personal
property that is used in |
11 | | the performance of infrastructure repairs in this
State, |
12 | | including but not limited to municipal roads and streets, |
13 | | access roads,
bridges, sidewalks, waste disposal systems, |
14 | | water and sewer line extensions,
water distribution and |
15 | | purification facilities, storm water drainage and
retention |
16 | | facilities, and sewage treatment facilities, resulting from a |
17 | | State
or federally declared disaster in Illinois or bordering |
18 | | Illinois when such
repairs are initiated on facilities located |
19 | | in the declared disaster area
within 6 months after the |
20 | | disaster.
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21 | | (26) Beginning July 1, 1999, game or game birds purchased |
22 | | at a "game
breeding
and hunting preserve area" as that term is
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23 | | used in
the Wildlife Code. This paragraph is exempt from the |
24 | | provisions
of
Section 3-90.
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25 | | (27) A motor vehicle, as that term is defined in Section |
26 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a |
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1 | | corporation, limited liability company,
society, association, |
2 | | foundation, or institution that is determined by the
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3 | | Department to be organized and operated exclusively for |
4 | | educational purposes.
For purposes of this exemption, "a |
5 | | corporation, limited liability company,
society, association, |
6 | | foundation, or institution organized and operated
exclusively |
7 | | for educational purposes" means all tax-supported public |
8 | | schools,
private schools that offer systematic instruction in |
9 | | useful branches of
learning by methods common to public |
10 | | schools and that compare favorably in
their scope and |
11 | | intensity with the course of study presented in tax-supported
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12 | | schools, and vocational or technical schools or institutes |
13 | | organized and
operated exclusively to provide a course of |
14 | | study of not less than 6 weeks
duration and designed to prepare |
15 | | individuals to follow a trade or to pursue a
manual, |
16 | | technical, mechanical, industrial, business, or commercial
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17 | | occupation.
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18 | | (28) Beginning January 1, 2000, personal property, |
19 | | including
food,
purchased through fundraising
events for the |
20 | | benefit of
a public or private elementary or
secondary school, |
21 | | a group of those schools, or one or more school
districts if |
22 | | the events are
sponsored by an entity recognized by the school |
23 | | district that consists
primarily of volunteers and includes
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24 | | parents and teachers of the school children. This paragraph |
25 | | does not apply
to fundraising
events (i) for the benefit of |
26 | | private home instruction or (ii)
for which the fundraising |
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1 | | entity purchases the personal property sold at
the events from |
2 | | another individual or entity that sold the property for the
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3 | | purpose of resale by the fundraising entity and that
profits |
4 | | from the sale to the
fundraising entity. This paragraph is |
5 | | exempt
from the provisions
of Section 3-90.
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6 | | (29) Beginning January 1, 2000 and through December 31, |
7 | | 2001, new or
used automatic vending
machines that prepare and |
8 | | serve hot food and beverages, including coffee, soup,
and
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9 | | other items, and replacement parts for these machines.
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10 | | Beginning January 1,
2002 and through June 30, 2003, machines |
11 | | and parts for machines used in
commercial, coin-operated |
12 | | amusement and vending business if a use or occupation
tax is |
13 | | paid on the gross receipts derived from the use of the |
14 | | commercial,
coin-operated amusement and vending machines.
This
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15 | | paragraph
is exempt from the provisions of Section 3-90.
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16 | | (30) Beginning January 1, 2001 and through June 30, 2016, |
17 | | food for human consumption that is to be consumed off the |
18 | | premises
where it is sold (other than alcoholic beverages, |
19 | | soft drinks, and food that
has been prepared for immediate |
20 | | consumption) and prescription and
nonprescription medicines, |
21 | | drugs, medical appliances, and insulin, urine
testing |
22 | | materials, syringes, and needles used by diabetics, for human |
23 | | use, when
purchased for use by a person receiving medical |
24 | | assistance under Article V of
the Illinois Public Aid Code who |
25 | | resides in a licensed long-term care facility,
as defined in |
26 | | the Nursing Home Care Act, or in a licensed facility as defined |
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1 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
2 | | Specialized Mental Health Rehabilitation Act of 2013.
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3 | | (31) Beginning on August 2, 2001 (the effective date of |
4 | | Public Act 92-227),
computers and communications equipment
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5 | | utilized for any hospital purpose and equipment used in the |
6 | | diagnosis,
analysis, or treatment of hospital patients |
7 | | purchased by a lessor who leases
the equipment, under a lease |
8 | | of one year or longer executed or in effect at the
time the |
9 | | lessor would otherwise be subject to the tax imposed by this |
10 | | Act, to a
hospital that has been issued an active tax exemption |
11 | | identification number by
the Department under Section 1g of |
12 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
13 | | in a manner that does not qualify for this exemption or is
used |
14 | | in any other nonexempt manner, the lessor shall be liable for |
15 | | the tax
imposed under this Act or the Service Use Tax Act, as |
16 | | the case may be, based on
the fair market value of the property |
17 | | at the time the nonqualifying use
occurs. No lessor shall |
18 | | collect or attempt to collect an amount (however
designated) |
19 | | that purports to reimburse that lessor for the tax imposed by |
20 | | this
Act or the Service Use Tax Act, as the case may be, if the |
21 | | tax has not been
paid by the lessor. If a lessor improperly |
22 | | collects any such amount from the
lessee, the lessee shall |
23 | | have a legal right to claim a refund of that amount
from the |
24 | | lessor. If, however, that amount is not refunded to the lessee |
25 | | for
any reason, the lessor is liable to pay that amount to the |
26 | | Department.
This paragraph is exempt from the provisions of |
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1 | | Section 3-90.
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2 | | (32) Beginning on August 2, 2001 (the effective date of |
3 | | Public Act 92-227),
personal property purchased by a lessor |
4 | | who leases the property,
under a lease of one year or longer |
5 | | executed or in effect at the time the
lessor would otherwise be |
6 | | subject to the tax imposed by this Act, to a
governmental body |
7 | | that has been issued an active sales tax exemption
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8 | | identification number by the Department under Section 1g of |
9 | | the Retailers'
Occupation Tax Act. If the property is leased |
10 | | in a manner that does not
qualify for this exemption or used in |
11 | | any other nonexempt manner, the lessor
shall be liable for the |
12 | | tax imposed under this Act or the Service Use Tax Act,
as the |
13 | | case may be, based on the fair market value of the property at |
14 | | the time
the nonqualifying use occurs. No lessor shall collect |
15 | | or attempt to collect
an amount (however designated) that |
16 | | purports to reimburse that lessor for the
tax imposed by this |
17 | | Act or the Service Use Tax Act, as the case may be, if the
tax |
18 | | has not been paid by the lessor. If a lessor improperly |
19 | | collects any such
amount from the lessee, the lessee shall |
20 | | have a legal right to claim a refund
of that amount from the |
21 | | lessor. If, however, that amount is not refunded to
the lessee |
22 | | for any reason, the lessor is liable to pay that amount to the
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23 | | Department. This paragraph is exempt from the provisions of |
24 | | Section 3-90.
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25 | | (33) On and after July 1, 2003 and through June 30, 2004, |
26 | | the use in this State of motor vehicles of
the second division |
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1 | | with a gross vehicle weight in excess of 8,000 pounds and
that |
2 | | are subject to the commercial distribution fee imposed under |
3 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on |
4 | | July 1, 2004 and through June 30, 2005, the use in this State |
5 | | of motor vehicles of the second division: (i) with a gross |
6 | | vehicle weight rating in excess of 8,000 pounds; (ii) that are |
7 | | subject to the commercial distribution fee imposed under |
8 | | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that |
9 | | are primarily used for commercial purposes. Through June 30, |
10 | | 2005, this exemption applies to repair and
replacement parts |
11 | | added after the initial purchase of such a motor vehicle if
|
12 | | that motor
vehicle is used in a manner that would qualify for |
13 | | the rolling stock exemption
otherwise provided for in this |
14 | | Act. For purposes of this paragraph, the term "used for |
15 | | commercial purposes" means the transportation of persons or |
16 | | property in furtherance of any commercial or industrial |
17 | | enterprise, whether for-hire or not.
|
18 | | (34) Beginning January 1, 2008, tangible personal property |
19 | | used in the construction or maintenance of a community water |
20 | | supply, as defined under Section 3.145 of the Environmental |
21 | | Protection Act, that is operated by a not-for-profit |
22 | | corporation that holds a valid water supply permit issued |
23 | | under Title IV of the Environmental Protection Act. This |
24 | | paragraph is exempt from the provisions of Section 3-90. |
25 | | (35) Beginning January 1, 2010 and continuing through |
26 | | December 31, 2024, materials, parts, equipment, components, |
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1 | | and furnishings incorporated into or upon an aircraft as part |
2 | | of the modification, refurbishment, completion, replacement, |
3 | | repair, or maintenance of the aircraft. This exemption |
4 | | includes consumable supplies used in the modification, |
5 | | refurbishment, completion, replacement, repair, and |
6 | | maintenance of aircraft . However, until January 1, 2024, this |
7 | | exemption , but excludes any materials, parts, equipment, |
8 | | components, and consumable supplies used in the modification, |
9 | | replacement, repair, and maintenance of aircraft engines or |
10 | | power plants, whether such engines or power plants are |
11 | | installed or uninstalled upon any such aircraft. "Consumable |
12 | | supplies" include, but are not limited to, adhesive, tape, |
13 | | sandpaper, general purpose lubricants, cleaning solution, |
14 | | latex gloves, and protective films. |
15 | | Beginning January 1, 2010 and continuing through December |
16 | | 31, 2023, this This exemption applies only to the use of |
17 | | qualifying tangible personal property by persons who modify, |
18 | | refurbish, complete, repair, replace, or maintain aircraft and |
19 | | who (i) hold an Air Agency Certificate and are empowered to |
20 | | operate an approved repair station by the Federal Aviation |
21 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
22 | | operations in accordance with Part 145 of the Federal Aviation |
23 | | Regulations. From January 1, 2024 through December 31, 2024, |
24 | | this exemption applies only to the use of qualifying tangible |
25 | | personal property by: (A) persons who modify, refurbish, |
26 | | complete, repair, replace, or maintain aircraft and who (i) |
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1 | | hold an Air Agency Certificate and are empowered to operate an |
2 | | approved repair station by the Federal Aviation |
3 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
4 | | operations in accordance with Part 145 of the Federal Aviation |
5 | | Regulations; and (B) persons who engage in the modification, |
6 | | replacement, repair, and maintenance of aircraft engines or |
7 | | power plants without regard to whether or not those persons |
8 | | meet the qualifications of item (A). |
9 | | The exemption does not include aircraft operated by a |
10 | | commercial air carrier providing scheduled passenger air |
11 | | service pursuant to authority issued under Part 121 or Part |
12 | | 129 of the Federal Aviation Regulations. The changes made to |
13 | | this paragraph (35) by Public Act 98-534 are declarative of |
14 | | existing law. It is the intent of the General Assembly that the |
15 | | exemption under this paragraph (35) applies continuously from |
16 | | January 1, 2010 through December 31, 2024; however, no claim |
17 | | for credit or refund is allowed for taxes paid as a result of |
18 | | the disallowance of this exemption on or after January 1, 2015 |
19 | | and prior to February 5, 2020 ( the effective date of Public Act |
20 | | 101-629) this amendatory Act of the 101st General Assembly . |
21 | | (36) Tangible personal property purchased by a |
22 | | public-facilities corporation, as described in Section |
23 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
24 | | constructing or furnishing a municipal convention hall, but |
25 | | only if the legal title to the municipal convention hall is |
26 | | transferred to the municipality without any further |
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1 | | consideration by or on behalf of the municipality at the time |
2 | | of the completion of the municipal convention hall or upon the |
3 | | retirement or redemption of any bonds or other debt |
4 | | instruments issued by the public-facilities corporation in |
5 | | connection with the development of the municipal convention |
6 | | hall. This exemption includes existing public-facilities |
7 | | corporations as provided in Section 11-65-25 of the Illinois |
8 | | Municipal Code. This paragraph is exempt from the provisions |
9 | | of Section 3-90. |
10 | | (37) Beginning January 1, 2017 and through December 31, |
11 | | 2026, menstrual pads, tampons, and menstrual cups. |
12 | | (38) Merchandise that is subject to the Rental Purchase |
13 | | Agreement Occupation and Use Tax. The purchaser must certify |
14 | | that the item is purchased to be rented subject to a rental |
15 | | purchase agreement, as defined in the Rental Purchase |
16 | | Agreement Act, and provide proof of registration under the |
17 | | Rental Purchase Agreement Occupation and Use Tax Act. This |
18 | | paragraph is exempt from the provisions of Section 3-90. |
19 | | (39) Tangible personal property purchased by a purchaser |
20 | | who is exempt from the tax imposed by this Act by operation of |
21 | | federal law. This paragraph is exempt from the provisions of |
22 | | Section 3-90. |
23 | | (40) Qualified tangible personal property used in the |
24 | | construction or operation of a data center that has been |
25 | | granted a certificate of exemption by the Department of |
26 | | Commerce and Economic Opportunity, whether that tangible |
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1 | | personal property is purchased by the owner, operator, or |
2 | | tenant of the data center or by a contractor or subcontractor |
3 | | of the owner, operator, or tenant. Data centers that would |
4 | | have qualified for a certificate of exemption prior to January |
5 | | 1, 2020 had Public Act 101-31 been in effect may apply for and |
6 | | obtain an exemption for subsequent purchases of computer |
7 | | equipment or enabling software purchased or leased to upgrade, |
8 | | supplement, or replace computer equipment or enabling software |
9 | | purchased or leased in the original investment that would have |
10 | | qualified. |
11 | | The Department of Commerce and Economic Opportunity shall |
12 | | grant a certificate of exemption under this item (40) to |
13 | | qualified data centers as defined by Section 605-1025 of the |
14 | | Department of Commerce and Economic Opportunity Law of the
|
15 | | Civil Administrative Code of Illinois. |
16 | | For the purposes of this item (40): |
17 | | "Data center" means a building or a series of |
18 | | buildings rehabilitated or constructed to house working |
19 | | servers in one physical location or multiple sites within |
20 | | the State of Illinois. |
21 | | "Qualified tangible personal property" means: |
22 | | electrical systems and equipment; climate control and |
23 | | chilling equipment and systems; mechanical systems and |
24 | | equipment; monitoring and secure systems; emergency |
25 | | generators; hardware; computers; servers; data storage |
26 | | devices; network connectivity equipment; racks; cabinets; |
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1 | | telecommunications cabling infrastructure; raised floor |
2 | | systems; peripheral components or systems; software; |
3 | | mechanical, electrical, or plumbing systems; battery |
4 | | systems; cooling systems and towers; temperature control |
5 | | systems; other cabling; and other data center |
6 | | infrastructure equipment and systems necessary to operate |
7 | | qualified tangible personal property, including fixtures; |
8 | | and component parts of any of the foregoing, including |
9 | | installation, maintenance, repair, refurbishment, and |
10 | | replacement of qualified tangible personal property to |
11 | | generate, transform, transmit, distribute, or manage |
12 | | electricity necessary to operate qualified tangible |
13 | | personal property; and all other tangible personal |
14 | | property that is essential to the operations of a computer |
15 | | data center. The term "qualified tangible personal |
16 | | property" also includes building materials physically |
17 | | incorporated in to the qualifying data center. To document |
18 | | the exemption allowed under this Section, the retailer |
19 | | must obtain from the purchaser a copy of the certificate |
20 | | of eligibility issued by the Department of Commerce and |
21 | | Economic Opportunity. |
22 | | This item (40) is exempt from the provisions of Section |
23 | | 3-90. |
24 | | (41) Beginning July 1, 2022, breast pumps, breast pump |
25 | | collection and storage supplies, and breast pump kits. This |
26 | | item (41) is exempt from the provisions of Section 3-90. As |
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1 | | used in this item (41): |
2 | | "Breast pump" means an electrically controlled or |
3 | | manually controlled pump device designed or marketed to be |
4 | | used to express milk from a human breast during lactation, |
5 | | including the pump device and any battery, AC adapter, or |
6 | | other power supply unit that is used to power the pump |
7 | | device and is packaged and sold with the pump device at the |
8 | | time of sale. |
9 | | "Breast pump collection and storage supplies" means |
10 | | items of tangible personal property designed or marketed |
11 | | to be used in conjunction with a breast pump to collect |
12 | | milk expressed from a human breast and to store collected |
13 | | milk until it is ready for consumption. |
14 | | "Breast pump collection and storage supplies" |
15 | | includes, but is not limited to: breast shields and breast |
16 | | shield connectors; breast pump tubes and tubing adapters; |
17 | | breast pump valves and membranes; backflow protectors and |
18 | | backflow protector adaptors; bottles and bottle caps |
19 | | specific to the operation of the breast pump; and breast |
20 | | milk storage bags. |
21 | | "Breast pump collection and storage supplies" does not |
22 | | include: (1) bottles and bottle caps not specific to the |
23 | | operation of the breast pump; (2) breast pump travel bags |
24 | | and other similar carrying accessories, including ice |
25 | | packs, labels, and other similar products; (3) breast pump |
26 | | cleaning supplies; (4) nursing bras, bra pads, breast |
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1 | | shells, and other similar products; and (5) creams, |
2 | | ointments, and other similar products that relieve |
3 | | breastfeeding-related symptoms or conditions of the |
4 | | breasts or nipples, unless sold as part of a breast pump |
5 | | kit that is pre-packaged by the breast pump manufacturer |
6 | | or distributor. |
7 | | "Breast pump kit" means a kit that: (1) contains no |
8 | | more than a breast pump, breast pump collection and |
9 | | storage supplies, a rechargeable battery for operating the |
10 | | breast pump, a breastmilk cooler, bottle stands, ice |
11 | | packs, and a breast pump carrying case; and (2) is |
12 | | pre-packaged as a breast pump kit by the breast pump |
13 | | manufacturer or distributor. |
14 | | (42) (41) Tangible personal property sold by or on behalf |
15 | | of the State Treasurer pursuant to the Revised Uniform |
16 | | Unclaimed Property Act. This item (42) (41) is exempt from the |
17 | | provisions of Section 3-90. |
18 | | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
19 | | 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. |
20 | | 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; |
21 | | 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, |
22 | | eff. 5-27-22; revised 8-1-22.)
|
23 | | Section 10. The Service Use Tax Act is amended by changing |
24 | | Section 3-5 as follows:
|
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1 | | (35 ILCS 110/3-5)
|
2 | | Sec. 3-5. Exemptions. Use of the following tangible |
3 | | personal property
is exempt from the tax imposed by this Act:
|
4 | | (1) Personal property purchased from a corporation, |
5 | | society,
association, foundation, institution, or |
6 | | organization, other than a limited
liability company, that is |
7 | | organized and operated as a not-for-profit service
enterprise |
8 | | for the benefit of persons 65 years of age or older if the |
9 | | personal
property was not purchased by the enterprise for the |
10 | | purpose of resale by the
enterprise.
|
11 | | (2) Personal property purchased by a non-profit Illinois |
12 | | county fair
association for use in conducting, operating, or |
13 | | promoting the county fair.
|
14 | | (3) Personal property purchased by a not-for-profit arts
|
15 | | or cultural
organization that establishes, by proof required |
16 | | by the Department by rule,
that it has received an exemption |
17 | | under Section 501(c)(3) of the Internal
Revenue Code and that |
18 | | is organized and operated primarily for the
presentation
or |
19 | | support of arts or cultural programming, activities, or |
20 | | services. These
organizations include, but are not limited to, |
21 | | music and dramatic arts
organizations such as symphony |
22 | | orchestras and theatrical groups, arts and
cultural service |
23 | | organizations, local arts councils, visual arts organizations,
|
24 | | and media arts organizations.
On and after July 1, 2001 (the |
25 | | effective date of Public Act 92-35), however, an entity |
26 | | otherwise eligible for this exemption shall not
make tax-free |
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1 | | purchases unless it has an active identification number issued |
2 | | by
the Department.
|
3 | | (4) Legal tender, currency, medallions, or gold or silver |
4 | | coinage issued
by the State of Illinois, the government of the |
5 | | United States of America,
or the government of any foreign |
6 | | country, and bullion.
|
7 | | (5) Until July 1, 2003 and beginning again on September 1, |
8 | | 2004 through August 30, 2014, graphic arts machinery and |
9 | | equipment, including
repair and
replacement parts, both new |
10 | | and used, and including that manufactured on
special order or |
11 | | purchased for lease, certified by the purchaser to be used
|
12 | | primarily for graphic arts production.
Equipment includes |
13 | | chemicals or
chemicals acting as catalysts but only if
the |
14 | | chemicals or chemicals acting as catalysts effect a direct and |
15 | | immediate
change upon a graphic arts product. Beginning on |
16 | | July 1, 2017, graphic arts machinery and equipment is included |
17 | | in the manufacturing and assembling machinery and equipment |
18 | | exemption under Section 2 of this Act.
|
19 | | (6) Personal property purchased from a teacher-sponsored |
20 | | student
organization affiliated with an elementary or |
21 | | secondary school located
in Illinois.
|
22 | | (7) Farm machinery and equipment, both new and used, |
23 | | including that
manufactured on special order, certified by the |
24 | | purchaser to be used
primarily for production agriculture or |
25 | | State or federal agricultural
programs, including individual |
26 | | replacement parts for the machinery and
equipment, including |
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1 | | machinery and equipment purchased for lease,
and including |
2 | | implements of husbandry defined in Section 1-130 of
the |
3 | | Illinois Vehicle Code, farm machinery and agricultural |
4 | | chemical and
fertilizer spreaders, and nurse wagons required |
5 | | to be registered
under Section 3-809 of the Illinois Vehicle |
6 | | Code,
but
excluding other motor vehicles required to be |
7 | | registered under the Illinois
Vehicle Code.
Horticultural |
8 | | polyhouses or hoop houses used for propagating, growing, or
|
9 | | overwintering plants shall be considered farm machinery and |
10 | | equipment under
this item (7).
Agricultural chemical tender |
11 | | tanks and dry boxes shall include units sold
separately from a |
12 | | motor vehicle required to be licensed and units sold mounted
|
13 | | on a motor vehicle required to be licensed if the selling price |
14 | | of the tender
is separately stated.
|
15 | | Farm machinery and equipment shall include precision |
16 | | farming equipment
that is
installed or purchased to be |
17 | | installed on farm machinery and equipment
including, but not |
18 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
19 | | or spreaders.
Precision farming equipment includes, but is not |
20 | | limited to,
soil testing sensors, computers, monitors, |
21 | | software, global positioning
and mapping systems, and other |
22 | | such equipment.
|
23 | | Farm machinery and equipment also includes computers, |
24 | | sensors, software, and
related equipment used primarily in the
|
25 | | computer-assisted operation of production agriculture |
26 | | facilities, equipment,
and activities such as, but
not limited |
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1 | | to,
the collection, monitoring, and correlation of
animal and |
2 | | crop data for the purpose of
formulating animal diets and |
3 | | agricultural chemicals. This item (7) is exempt
from the |
4 | | provisions of
Section 3-75.
|
5 | | (8) Until June 30, 2013, fuel and petroleum products sold |
6 | | to or used by an air common
carrier, certified by the carrier |
7 | | to be used for consumption, shipment, or
storage in the |
8 | | conduct of its business as an air common carrier, for a
flight |
9 | | destined for or returning from a location or locations
outside |
10 | | the United States without regard to previous or subsequent |
11 | | domestic
stopovers.
|
12 | | Beginning July 1, 2013, fuel and petroleum products sold |
13 | | to or used by an air carrier, certified by the carrier to be |
14 | | used for consumption, shipment, or storage in the conduct of |
15 | | its business as an air common carrier, for a flight that (i) is |
16 | | engaged in foreign trade or is engaged in trade between the |
17 | | United States and any of its possessions and (ii) transports |
18 | | at least one individual or package for hire from the city of |
19 | | origination to the city of final destination on the same |
20 | | aircraft, without regard to a change in the flight number of |
21 | | that aircraft. |
22 | | (9) Proceeds of mandatory service charges separately |
23 | | stated on
customers' bills for the purchase and consumption of |
24 | | food and beverages
acquired as an incident to the purchase of a |
25 | | service from a serviceman, to
the extent that the proceeds of |
26 | | the service charge are in fact
turned over as tips or as a |
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1 | | substitute for tips to the employees who
participate directly |
2 | | in preparing, serving, hosting or cleaning up the
food or |
3 | | beverage function with respect to which the service charge is |
4 | | imposed.
|
5 | | (10) Until July 1, 2003, oil field exploration, drilling, |
6 | | and production
equipment, including
(i) rigs and parts of |
7 | | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
8 | | pipe and tubular goods, including casing and
drill strings, |
9 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow
|
10 | | lines, (v) any individual replacement part for oil field |
11 | | exploration,
drilling, and production equipment, and (vi) |
12 | | machinery and equipment purchased
for lease; but
excluding |
13 | | motor vehicles required to be registered under the Illinois
|
14 | | Vehicle Code.
|
15 | | (11) Proceeds from the sale of photoprocessing machinery |
16 | | and
equipment, including repair and replacement parts, both |
17 | | new and
used, including that manufactured on special order, |
18 | | certified by the
purchaser to be used primarily for |
19 | | photoprocessing, and including
photoprocessing machinery and |
20 | | equipment purchased for lease.
|
21 | | (12) Until July 1, 2028, coal and aggregate exploration, |
22 | | mining, off-highway hauling,
processing,
maintenance, and |
23 | | reclamation equipment, including
replacement parts and |
24 | | equipment, and including
equipment purchased for lease, but |
25 | | excluding motor vehicles required to be
registered under the |
26 | | Illinois Vehicle Code. The changes made to this Section by |
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1 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
2 | | for credit or refund is allowed on or after August 16, 2013 |
3 | | (the effective date of Public Act 98-456)
for such taxes paid |
4 | | during the period beginning July 1, 2003 and ending on August |
5 | | 16, 2013 (the effective date of Public Act 98-456).
|
6 | | (13) Semen used for artificial insemination of livestock |
7 | | for direct
agricultural production.
|
8 | | (14) Horses, or interests in horses, registered with and |
9 | | meeting the
requirements of any of the
Arabian Horse Club |
10 | | Registry of America, Appaloosa Horse Club, American Quarter
|
11 | | Horse Association, United States
Trotting Association, or |
12 | | Jockey Club, as appropriate, used for
purposes of breeding or |
13 | | racing for prizes. This item (14) is exempt from the |
14 | | provisions of Section 3-75, and the exemption provided for |
15 | | under this item (14) applies for all periods beginning May 30, |
16 | | 1995, but no claim for credit or refund is allowed on or after |
17 | | January 1, 2008 (the effective date of Public Act 95-88) for |
18 | | such taxes paid during the period beginning May 30, 2000 and |
19 | | ending on January 1, 2008 (the effective date of Public Act |
20 | | 95-88).
|
21 | | (15) Computers and communications equipment utilized for |
22 | | any
hospital
purpose
and equipment used in the diagnosis,
|
23 | | analysis, or treatment of hospital patients purchased by a |
24 | | lessor who leases
the
equipment, under a lease of one year or |
25 | | longer executed or in effect at the
time
the lessor would |
26 | | otherwise be subject to the tax imposed by this Act,
to a
|
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1 | | hospital
that has been issued an active tax exemption |
2 | | identification number by the
Department under Section 1g of |
3 | | the Retailers' Occupation Tax Act.
If the
equipment is leased |
4 | | in a manner that does not qualify for
this exemption
or is used |
5 | | in any other non-exempt manner,
the lessor shall be liable for |
6 | | the
tax imposed under this Act or the Use Tax Act, as the case |
7 | | may
be, based on the fair market value of the property at the |
8 | | time the
non-qualifying use occurs. No lessor shall collect or |
9 | | attempt to collect an
amount (however
designated) that |
10 | | purports to reimburse that lessor for the tax imposed by this
|
11 | | Act or the Use Tax Act, as the case may be, if the tax has not |
12 | | been
paid by the lessor. If a lessor improperly collects any |
13 | | such amount from the
lessee, the lessee shall have a legal |
14 | | right to claim a refund of that amount
from the lessor. If, |
15 | | however, that amount is not refunded to the lessee for
any |
16 | | reason, the lessor is liable to pay that amount to the |
17 | | Department.
|
18 | | (16) Personal property purchased by a lessor who leases |
19 | | the
property, under
a
lease of one year or longer executed or |
20 | | in effect at the time
the lessor would otherwise be subject to |
21 | | the tax imposed by this Act,
to a governmental body
that has |
22 | | been issued an active tax exemption identification number by |
23 | | the
Department under Section 1g of the Retailers' Occupation |
24 | | Tax Act.
If the
property is leased in a manner that does not |
25 | | qualify for
this exemption
or is used in any other non-exempt |
26 | | manner,
the lessor shall be liable for the
tax imposed under |
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1 | | this Act or the Use Tax Act, as the case may
be, based on the |
2 | | fair market value of the property at the time the
|
3 | | non-qualifying use occurs. No lessor shall collect or attempt |
4 | | to collect an
amount (however
designated) that purports to |
5 | | reimburse that lessor for the tax imposed by this
Act or the |
6 | | Use Tax Act, as the case may be, if the tax has not been
paid |
7 | | by the lessor. If a lessor improperly collects any such amount |
8 | | from the
lessee, the lessee shall have a legal right to claim a |
9 | | refund of that amount
from the lessor. If, however, that |
10 | | amount is not refunded to the lessee for
any reason, the lessor |
11 | | is liable to pay that amount to the Department.
|
12 | | (17) Beginning with taxable years ending on or after |
13 | | December
31,
1995
and
ending with taxable years ending on or |
14 | | before December 31, 2004,
personal property that is
donated |
15 | | for disaster relief to be used in a State or federally declared
|
16 | | disaster area in Illinois or bordering Illinois by a |
17 | | manufacturer or retailer
that is registered in this State to a |
18 | | corporation, society, association,
foundation, or institution |
19 | | that has been issued a sales tax exemption
identification |
20 | | number by the Department that assists victims of the disaster
|
21 | | who reside within the declared disaster area.
|
22 | | (18) Beginning with taxable years ending on or after |
23 | | December
31, 1995 and
ending with taxable years ending on or |
24 | | before December 31, 2004, personal
property that is used in |
25 | | the performance of infrastructure repairs in this
State, |
26 | | including but not limited to municipal roads and streets, |
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1 | | access roads,
bridges, sidewalks, waste disposal systems, |
2 | | water and sewer line extensions,
water distribution and |
3 | | purification facilities, storm water drainage and
retention |
4 | | facilities, and sewage treatment facilities, resulting from a |
5 | | State
or federally declared disaster in Illinois or bordering |
6 | | Illinois when such
repairs are initiated on facilities located |
7 | | in the declared disaster area
within 6 months after the |
8 | | disaster.
|
9 | | (19) Beginning July 1, 1999, game or game birds purchased |
10 | | at a "game
breeding
and hunting preserve area" as that term is
|
11 | | used in
the Wildlife Code. This paragraph is exempt from the |
12 | | provisions
of
Section 3-75.
|
13 | | (20) A motor vehicle, as that term is defined in Section |
14 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
15 | | corporation, limited liability
company, society, association, |
16 | | foundation, or institution that is determined by
the |
17 | | Department to be organized and operated exclusively for |
18 | | educational
purposes. For purposes of this exemption, "a |
19 | | corporation, limited liability
company, society, association, |
20 | | foundation, or institution organized and
operated
exclusively |
21 | | for educational purposes" means all tax-supported public |
22 | | schools,
private schools that offer systematic instruction in |
23 | | useful branches of
learning by methods common to public |
24 | | schools and that compare favorably in
their scope and |
25 | | intensity with the course of study presented in tax-supported
|
26 | | schools, and vocational or technical schools or institutes |
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1 | | organized and
operated exclusively to provide a course of |
2 | | study of not less than 6 weeks
duration and designed to prepare |
3 | | individuals to follow a trade or to pursue a
manual, |
4 | | technical, mechanical, industrial, business, or commercial
|
5 | | occupation.
|
6 | | (21) Beginning January 1, 2000, personal property, |
7 | | including
food,
purchased through fundraising
events for the |
8 | | benefit of
a public or private elementary or
secondary school, |
9 | | a group of those schools, or one or more school
districts if |
10 | | the events are
sponsored by an entity recognized by the school |
11 | | district that consists
primarily of volunteers and includes
|
12 | | parents and teachers of the school children. This paragraph |
13 | | does not apply
to fundraising
events (i) for the benefit of |
14 | | private home instruction or (ii)
for which the fundraising |
15 | | entity purchases the personal property sold at
the events from |
16 | | another individual or entity that sold the property for the
|
17 | | purpose of resale by the fundraising entity and that
profits |
18 | | from the sale to the
fundraising entity. This paragraph is |
19 | | exempt
from the provisions
of Section 3-75.
|
20 | | (22) Beginning January 1, 2000
and through December 31, |
21 | | 2001, new or used automatic vending
machines that prepare and |
22 | | serve hot food and beverages, including coffee, soup,
and
|
23 | | other items, and replacement parts for these machines.
|
24 | | Beginning January 1,
2002 and through June 30, 2003, machines |
25 | | and parts for machines used in
commercial, coin-operated
|
26 | | amusement
and vending business if a use or occupation tax is |
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1 | | paid on the gross receipts
derived from
the use of the |
2 | | commercial, coin-operated amusement and vending machines.
This
|
3 | | paragraph
is exempt from the provisions of Section 3-75.
|
4 | | (23) Beginning August 23, 2001 and through June 30, 2016, |
5 | | food for human consumption that is to be consumed off the
|
6 | | premises
where it is sold (other than alcoholic beverages, |
7 | | soft drinks, and food that
has been prepared for immediate |
8 | | consumption) and prescription and
nonprescription medicines, |
9 | | drugs, medical appliances, and insulin, urine
testing |
10 | | materials, syringes, and needles used by diabetics, for human |
11 | | use, when
purchased for use by a person receiving medical |
12 | | assistance under Article V of
the Illinois Public Aid Code who |
13 | | resides in a licensed long-term care facility,
as defined in |
14 | | the Nursing Home Care Act, or in a licensed facility as defined |
15 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
16 | | Specialized Mental Health Rehabilitation Act of 2013.
|
17 | | (24) Beginning on August 2, 2001 (the effective date of |
18 | | Public Act 92-227), computers and communications equipment
|
19 | | utilized for any hospital purpose and equipment used in the |
20 | | diagnosis,
analysis, or treatment of hospital patients |
21 | | purchased by a lessor who leases
the equipment, under a lease |
22 | | of one year or longer executed or in effect at the
time the |
23 | | lessor would otherwise be subject to the tax imposed by this |
24 | | Act, to a
hospital that has been issued an active tax exemption |
25 | | identification number by
the Department under Section 1g of |
26 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
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1 | | in a manner that does not qualify for this exemption or is
used |
2 | | in any other nonexempt manner, the lessor shall be liable for |
3 | | the
tax imposed under this Act or the Use Tax Act, as the case |
4 | | may be, based on the
fair market value of the property at the |
5 | | time the nonqualifying use occurs.
No lessor shall collect or |
6 | | attempt to collect an amount (however
designated) that |
7 | | purports to reimburse that lessor for the tax imposed by this
|
8 | | Act or the Use Tax Act, as the case may be, if the tax has not |
9 | | been
paid by the lessor. If a lessor improperly collects any |
10 | | such amount from the
lessee, the lessee shall have a legal |
11 | | right to claim a refund of that amount
from the lessor. If, |
12 | | however, that amount is not refunded to the lessee for
any |
13 | | reason, the lessor is liable to pay that amount to the |
14 | | Department.
This paragraph is exempt from the provisions of |
15 | | Section 3-75.
|
16 | | (25) Beginning
on August 2, 2001 (the effective date of |
17 | | Public Act 92-227),
personal property purchased by a lessor
|
18 | | who leases the property, under a lease of one year or longer |
19 | | executed or in
effect at the time the lessor would otherwise be |
20 | | subject to the tax imposed by
this Act, to a governmental body |
21 | | that has been issued an active tax exemption
identification |
22 | | number by the Department under Section 1g of the Retailers'
|
23 | | Occupation Tax Act. If the property is leased in a manner that |
24 | | does not
qualify for this exemption or is used in any other |
25 | | nonexempt manner, the
lessor shall be liable for the tax |
26 | | imposed under this Act or the Use Tax Act,
as the case may be, |
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1 | | based on the fair market value of the property at the time
the |
2 | | nonqualifying use occurs. No lessor shall collect or attempt |
3 | | to collect
an amount (however designated) that purports to |
4 | | reimburse that lessor for the
tax imposed by this Act or the |
5 | | Use Tax Act, as the case may be, if the tax has
not been paid |
6 | | by the lessor. If a lessor improperly collects any such amount
|
7 | | from the lessee, the lessee shall have a legal right to claim a |
8 | | refund of that
amount from the lessor. If, however, that |
9 | | amount is not refunded to the lessee
for any reason, the lessor |
10 | | is liable to pay that amount to the Department.
This paragraph |
11 | | is exempt from the provisions of Section 3-75.
|
12 | | (26) Beginning January 1, 2008, tangible personal property |
13 | | used in the construction or maintenance of a community water |
14 | | supply, as defined under Section 3.145 of the Environmental |
15 | | Protection Act, that is operated by a not-for-profit |
16 | | corporation that holds a valid water supply permit issued |
17 | | under Title IV of the Environmental Protection Act. This |
18 | | paragraph is exempt from the provisions of Section 3-75.
|
19 | | (27) Beginning January 1, 2010 and continuing through |
20 | | December 31, 2024, materials, parts, equipment, components, |
21 | | and furnishings incorporated into or upon an aircraft as part |
22 | | of the modification, refurbishment, completion, replacement, |
23 | | repair, or maintenance of the aircraft. This exemption |
24 | | includes consumable supplies used in the modification, |
25 | | refurbishment, completion, replacement, repair, and |
26 | | maintenance of aircraft . However, until January 1, 2024, this |
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1 | | exemption , but excludes any materials, parts, equipment, |
2 | | components, and consumable supplies used in the modification, |
3 | | replacement, repair, and maintenance of aircraft engines or |
4 | | power plants, whether such engines or power plants are |
5 | | installed or uninstalled upon any such aircraft. "Consumable |
6 | | supplies" include, but are not limited to, adhesive, tape, |
7 | | sandpaper, general purpose lubricants, cleaning solution, |
8 | | latex gloves, and protective films. |
9 | | Beginning January 1, 2010 and continuing through December |
10 | | 31, 2023, this This exemption applies only to the use of |
11 | | qualifying tangible personal property transferred incident to |
12 | | the modification, refurbishment, completion, replacement, |
13 | | repair, or maintenance of aircraft by persons who (i) hold an |
14 | | Air Agency Certificate and are empowered to operate an |
15 | | approved repair station by the Federal Aviation |
16 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
17 | | operations in accordance with Part 145 of the Federal Aviation |
18 | | Regulations. From January 1, 2024 through December 31, 2024, |
19 | | this exemption applies only to the use of qualifying tangible |
20 | | personal property by: (A) persons who modify, refurbish, |
21 | | complete, repair, replace, or maintain aircraft and who (i) |
22 | | hold an Air Agency Certificate and are empowered to operate an |
23 | | approved repair station by the Federal Aviation |
24 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
25 | | operations in accordance with Part 145 of the Federal Aviation |
26 | | Regulations; and (B) persons who engage in the modification, |
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1 | | replacement, repair, and maintenance of aircraft engines or |
2 | | power plants without regard to whether or not those persons |
3 | | meet the qualifications of item (A). |
4 | | The exemption does not include aircraft operated by a |
5 | | commercial air carrier providing scheduled passenger air |
6 | | service pursuant to authority issued under Part 121 or Part |
7 | | 129 of the Federal Aviation Regulations. The changes made to |
8 | | this paragraph (27) by Public Act 98-534 are declarative of |
9 | | existing law. It is the intent of the General Assembly that the |
10 | | exemption under this paragraph (27) applies continuously from |
11 | | January 1, 2010 through December 31, 2024; however, no claim |
12 | | for credit or refund is allowed for taxes paid as a result of |
13 | | the disallowance of this exemption on or after January 1, 2015 |
14 | | and prior to February 5, 2020 ( the effective date of Public Act |
15 | | 101-629) this amendatory Act of the 101st General Assembly . |
16 | | (28) Tangible personal property purchased by a |
17 | | public-facilities corporation, as described in Section |
18 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
19 | | constructing or furnishing a municipal convention hall, but |
20 | | only if the legal title to the municipal convention hall is |
21 | | transferred to the municipality without any further |
22 | | consideration by or on behalf of the municipality at the time |
23 | | of the completion of the municipal convention hall or upon the |
24 | | retirement or redemption of any bonds or other debt |
25 | | instruments issued by the public-facilities corporation in |
26 | | connection with the development of the municipal convention |
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1 | | hall. This exemption includes existing public-facilities |
2 | | corporations as provided in Section 11-65-25 of the Illinois |
3 | | Municipal Code. This paragraph is exempt from the provisions |
4 | | of Section 3-75. |
5 | | (29) Beginning January 1, 2017 and through December 31, |
6 | | 2026, menstrual pads, tampons, and menstrual cups. |
7 | | (30) Tangible personal property transferred to a purchaser |
8 | | who is exempt from the tax imposed by this Act by operation of |
9 | | federal law. This paragraph is exempt from the provisions of |
10 | | Section 3-75. |
11 | | (31) Qualified tangible personal property used in the |
12 | | construction or operation of a data center that has been |
13 | | granted a certificate of exemption by the Department of |
14 | | Commerce and Economic Opportunity, whether that tangible |
15 | | personal property is purchased by the owner, operator, or |
16 | | tenant of the data center or by a contractor or subcontractor |
17 | | of the owner, operator, or tenant. Data centers that would |
18 | | have qualified for a certificate of exemption prior to January |
19 | | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st |
20 | | General Assembly been in effect, may apply for and obtain an |
21 | | exemption for subsequent purchases of computer equipment or |
22 | | enabling software purchased or leased to upgrade, supplement, |
23 | | or replace computer equipment or enabling software purchased |
24 | | or leased in the original investment that would have |
25 | | qualified. |
26 | | The Department of Commerce and Economic Opportunity shall |
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1 | | grant a certificate of exemption under this item (31) to |
2 | | qualified data centers as defined by Section 605-1025 of the |
3 | | Department of Commerce and Economic Opportunity Law of the
|
4 | | Civil Administrative Code of Illinois. |
5 | | For the purposes of this item (31): |
6 | | "Data center" means a building or a series of |
7 | | buildings rehabilitated or constructed to house working |
8 | | servers in one physical location or multiple sites within |
9 | | the State of 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 |
8 | | must obtain from the purchaser a copy of the certificate |
9 | | of eligibility issued by the Department of Commerce and |
10 | | Economic Opportunity. |
11 | | This item (31) is exempt from the provisions of Section |
12 | | 3-75. |
13 | | (32) Beginning July 1, 2022, breast pumps, breast pump |
14 | | collection and storage supplies, and breast pump kits. This |
15 | | item (32) is exempt from the provisions of Section 3-75. As |
16 | | used in this item (32): |
17 | | "Breast pump" means an electrically controlled or |
18 | | manually controlled pump device designed or marketed to be |
19 | | used to express milk from a human breast during lactation, |
20 | | including the pump device and any battery, AC adapter, or |
21 | | other power supply unit that is used to power the pump |
22 | | device and is packaged and sold with the pump device at the |
23 | | time of sale. |
24 | | "Breast pump collection and storage supplies" means |
25 | | items of tangible personal property designed or marketed |
26 | | to be used in conjunction with a breast pump to collect |
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1 | | milk expressed from a human breast and to store collected |
2 | | milk until it is ready for consumption. |
3 | | "Breast pump collection and storage supplies" |
4 | | includes, but is not limited to: breast shields and breast |
5 | | shield connectors; breast pump tubes and tubing adapters; |
6 | | breast pump valves and membranes; backflow protectors and |
7 | | backflow protector adaptors; bottles and bottle caps |
8 | | specific to the operation of the breast pump; and breast |
9 | | milk storage bags. |
10 | | "Breast pump collection and storage supplies" does not |
11 | | include: (1) bottles and bottle caps not specific to the |
12 | | operation of the breast pump; (2) breast pump travel bags |
13 | | and other similar carrying accessories, including ice |
14 | | packs, labels, and other similar products; (3) breast pump |
15 | | cleaning supplies; (4) nursing bras, bra pads, breast |
16 | | shells, and other similar products; and (5) creams, |
17 | | ointments, and other similar products that relieve |
18 | | breastfeeding-related symptoms or conditions of the |
19 | | breasts or nipples, unless sold as part of a breast pump |
20 | | kit that is pre-packaged by the breast pump manufacturer |
21 | | or distributor. |
22 | | "Breast pump kit" means a kit that: (1) contains no |
23 | | more than a breast pump, breast pump collection and |
24 | | storage supplies, a rechargeable battery for operating the |
25 | | breast pump, a breastmilk cooler, bottle stands, ice |
26 | | packs, and a breast pump carrying case; and (2) is |
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1 | | pre-packaged as a breast pump kit by the breast pump |
2 | | manufacturer or distributor. |
3 | | (33) (32) Tangible personal property sold by or on behalf |
4 | | of the State Treasurer pursuant to the Revised Uniform |
5 | | Unclaimed Property Act. This item (33) (32) is exempt from the |
6 | | provisions of Section 3-75. |
7 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
8 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article |
9 | | 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section |
10 | | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
|
11 | | Section 15. The Service Occupation Tax Act is amended by |
12 | | changing Section 3-5 as follows:
|
13 | | (35 ILCS 115/3-5)
|
14 | | Sec. 3-5. Exemptions. The following tangible personal |
15 | | property is
exempt from the tax imposed by this Act:
|
16 | | (1) Personal property sold by a corporation, society, |
17 | | association,
foundation, institution, or organization, other |
18 | | than a limited liability
company, that is organized and |
19 | | operated as a not-for-profit service enterprise
for the |
20 | | benefit of persons 65 years of age or older if the personal |
21 | | property
was not purchased by the enterprise for the purpose |
22 | | of resale by the
enterprise.
|
23 | | (2) Personal property purchased by a not-for-profit |
24 | | Illinois county fair
association for use in conducting, |
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1 | | operating, or promoting the county fair.
|
2 | | (3) Personal property purchased by any not-for-profit
arts |
3 | | or cultural organization that establishes, by proof required |
4 | | by the
Department by
rule, that it has received an exemption |
5 | | under Section 501(c)(3) of the
Internal Revenue Code and that |
6 | | is organized and operated primarily for the
presentation
or |
7 | | support of arts or cultural programming, activities, or |
8 | | services. These
organizations include, but are not limited to, |
9 | | music and dramatic arts
organizations such as symphony |
10 | | orchestras and theatrical groups, arts and
cultural service |
11 | | organizations, local arts councils, visual arts organizations,
|
12 | | and media arts organizations.
On and after July 1, 2001 (the |
13 | | effective date of Public Act 92-35), however, an entity |
14 | | otherwise eligible for this exemption shall not
make tax-free |
15 | | purchases unless it has an active identification number issued |
16 | | by
the Department.
|
17 | | (4) Legal tender, currency, medallions, or gold or silver |
18 | | coinage
issued by the State of Illinois, the government of the |
19 | | United States of
America, or the government of any foreign |
20 | | country, and bullion.
|
21 | | (5) Until July 1, 2003 and beginning again on September 1, |
22 | | 2004 through August 30, 2014, graphic arts machinery and |
23 | | equipment, including
repair and
replacement parts, both new |
24 | | and used, and including that manufactured on
special order or |
25 | | purchased for lease, certified by the purchaser to be used
|
26 | | primarily for graphic arts production.
Equipment includes |
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1 | | chemicals or chemicals acting as catalysts but only if
the
|
2 | | chemicals or chemicals acting as catalysts effect a direct and |
3 | | immediate change
upon a graphic arts product. Beginning on |
4 | | July 1, 2017, graphic arts machinery and equipment is included |
5 | | in the manufacturing and assembling machinery and equipment |
6 | | exemption under Section 2 of this Act.
|
7 | | (6) Personal property sold by a teacher-sponsored student |
8 | | organization
affiliated with an elementary or secondary school |
9 | | located in Illinois.
|
10 | | (7) Farm machinery and equipment, both new and used, |
11 | | including that
manufactured on special order, certified by the |
12 | | purchaser to be used
primarily for production agriculture or |
13 | | State or federal agricultural
programs, including individual |
14 | | replacement parts for the machinery and
equipment, including |
15 | | machinery and equipment purchased for lease,
and including |
16 | | implements of husbandry defined in Section 1-130 of
the |
17 | | Illinois Vehicle Code, farm machinery and agricultural |
18 | | chemical and
fertilizer spreaders, and nurse wagons required |
19 | | to be registered
under Section 3-809 of the Illinois Vehicle |
20 | | Code,
but
excluding other motor vehicles required to be |
21 | | registered under the Illinois
Vehicle
Code.
Horticultural |
22 | | polyhouses or hoop houses used for propagating, growing, or
|
23 | | overwintering plants shall be considered farm machinery and |
24 | | equipment under
this item (7).
Agricultural chemical tender |
25 | | tanks and dry boxes shall include units sold
separately from a |
26 | | motor vehicle required to be licensed and units sold mounted
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1 | | on a motor vehicle required to be licensed if the selling price |
2 | | of the tender
is separately stated.
|
3 | | Farm machinery and equipment shall include precision |
4 | | farming equipment
that is
installed or purchased to be |
5 | | installed on farm machinery and equipment
including, but not |
6 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
7 | | or spreaders.
Precision farming equipment includes, but is not |
8 | | limited to,
soil testing sensors, computers, monitors, |
9 | | software, global positioning
and mapping systems, and other |
10 | | such equipment.
|
11 | | Farm machinery and equipment also includes computers, |
12 | | sensors, software, and
related equipment used primarily in the
|
13 | | computer-assisted operation of production agriculture |
14 | | facilities, equipment,
and activities such as, but
not limited |
15 | | to,
the collection, monitoring, and correlation of
animal and |
16 | | crop data for the purpose of
formulating animal diets and |
17 | | agricultural chemicals. This item (7) is exempt
from the |
18 | | provisions of
Section 3-55.
|
19 | | (8) Until June 30, 2013, fuel and petroleum products sold |
20 | | to or used by an air common
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 flight |
23 | | destined for or returning from a location or locations
outside |
24 | | the United States without regard to previous or subsequent |
25 | | domestic
stopovers.
|
26 | | Beginning July 1, 2013, fuel and petroleum products sold |
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1 | | to or used by an air carrier, certified by the carrier to be |
2 | | used for consumption, shipment, or storage in the conduct of |
3 | | its business as an air common carrier, for a flight that (i) is |
4 | | engaged in foreign trade or is engaged in trade between the |
5 | | United States and any of its possessions and (ii) transports |
6 | | at least one individual or package for hire from the city of |
7 | | origination to the city of final destination on the same |
8 | | aircraft, without regard to a change in the flight number of |
9 | | that aircraft. |
10 | | (9) Proceeds of mandatory service charges separately
|
11 | | stated on customers' bills for the purchase and consumption of |
12 | | food and
beverages, to the extent that the proceeds of the |
13 | | service charge are in fact
turned over as tips or as a |
14 | | substitute for tips to the employees who
participate directly |
15 | | in preparing, serving, hosting or cleaning up the
food or |
16 | | beverage function with respect to which the service charge is |
17 | | imposed.
|
18 | | (10) Until July 1, 2003, oil field exploration, drilling, |
19 | | and production
equipment,
including (i) rigs and parts of |
20 | | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
21 | | pipe and tubular goods, including casing and
drill strings, |
22 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow
|
23 | | lines, (v) any individual replacement part for oil field |
24 | | exploration,
drilling, and production equipment, and (vi) |
25 | | machinery and equipment purchased
for lease; but
excluding |
26 | | motor vehicles required to be registered under the Illinois
|
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1 | | Vehicle Code.
|
2 | | (11) Photoprocessing machinery and equipment, including |
3 | | repair and
replacement parts, both new and used, including |
4 | | that manufactured on
special order, certified by the purchaser |
5 | | to be used primarily for
photoprocessing, and including |
6 | | photoprocessing machinery and equipment
purchased for lease.
|
7 | | (12) Until July 1, 2028, coal and aggregate exploration, |
8 | | mining, off-highway hauling,
processing,
maintenance, and |
9 | | reclamation equipment, including
replacement parts and |
10 | | equipment, and including
equipment
purchased for lease, but |
11 | | excluding motor vehicles required to be registered
under the |
12 | | Illinois Vehicle Code. The changes made to this Section by |
13 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
14 | | for credit or refund is allowed on or after August 16, 2013 |
15 | | (the effective date of Public Act 98-456)
for such taxes paid |
16 | | during the period beginning July 1, 2003 and ending on August |
17 | | 16, 2013 (the effective date of Public Act 98-456).
|
18 | | (13) Beginning January 1, 1992 and through June 30, 2016, |
19 | | food for human consumption that is to be consumed off the |
20 | | premises
where it is sold (other than alcoholic beverages, |
21 | | soft drinks and food that
has been prepared for immediate |
22 | | consumption) and prescription and
non-prescription medicines, |
23 | | drugs, medical appliances, and insulin, urine
testing |
24 | | materials, syringes, and needles used by diabetics, for human |
25 | | use,
when purchased for use by a person receiving medical |
26 | | assistance under
Article V of the Illinois Public Aid Code who |
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1 | | resides in a licensed
long-term care facility, as defined in |
2 | | the Nursing Home Care Act, or in a licensed facility as defined |
3 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
4 | | Specialized Mental Health Rehabilitation Act of 2013.
|
5 | | (14) Semen used for artificial insemination of livestock |
6 | | for direct
agricultural production.
|
7 | | (15) Horses, or interests in horses, registered with and |
8 | | meeting the
requirements of any of the
Arabian Horse Club |
9 | | Registry of America, Appaloosa Horse Club, American Quarter
|
10 | | Horse Association, United States
Trotting Association, or |
11 | | Jockey Club, as appropriate, used for
purposes of breeding or |
12 | | racing for prizes. This item (15) is exempt from the |
13 | | provisions of Section 3-55, and the exemption provided for |
14 | | under this item (15) applies for all periods beginning May 30, |
15 | | 1995, but no claim for credit or refund is allowed on or after |
16 | | January 1, 2008 (the effective date of Public Act 95-88)
for |
17 | | such taxes paid during the period beginning May 30, 2000 and |
18 | | ending on January 1, 2008 (the effective date of Public Act |
19 | | 95-88).
|
20 | | (16) Computers and communications equipment utilized for |
21 | | any
hospital
purpose
and equipment used in the diagnosis,
|
22 | | analysis, or treatment of hospital patients sold to a lessor |
23 | | who leases the
equipment, under a lease of one year or longer |
24 | | executed or in effect at the
time of the purchase, to a
|
25 | | hospital
that has been issued an active tax exemption |
26 | | identification number by the
Department under Section 1g of |
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1 | | the Retailers' Occupation Tax Act.
|
2 | | (17) Personal property sold to a lessor who leases the
|
3 | | property, under a
lease of one year or longer executed or in |
4 | | effect at the time of the purchase,
to a governmental body
that |
5 | | has been issued an active tax exemption identification number |
6 | | by the
Department under Section 1g of the Retailers' |
7 | | Occupation Tax Act.
|
8 | | (18) Beginning with taxable years ending on or after |
9 | | December
31, 1995
and
ending with taxable years ending on or |
10 | | before December 31, 2004,
personal property that is
donated |
11 | | for disaster relief to be used in a State or federally declared
|
12 | | disaster area in Illinois or bordering Illinois by a |
13 | | manufacturer or retailer
that is registered in this State to a |
14 | | corporation, society, association,
foundation, or institution |
15 | | that has been issued a sales tax exemption
identification |
16 | | number by the Department that assists victims of the disaster
|
17 | | who reside within the declared disaster area.
|
18 | | (19) Beginning with taxable years ending on or after |
19 | | December
31, 1995 and
ending with taxable years ending on or |
20 | | before December 31, 2004, personal
property that is used in |
21 | | the performance of infrastructure repairs in this
State, |
22 | | including but not limited to municipal roads and streets, |
23 | | access roads,
bridges, sidewalks, waste disposal systems, |
24 | | water and sewer line extensions,
water distribution and |
25 | | purification facilities, storm water drainage and
retention |
26 | | facilities, and sewage treatment facilities, resulting from a |
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1 | | State
or federally declared disaster in Illinois or bordering |
2 | | Illinois when such
repairs are initiated on facilities located |
3 | | in the declared disaster area
within 6 months after the |
4 | | disaster.
|
5 | | (20) Beginning July 1, 1999, game or game birds sold at a |
6 | | "game breeding
and
hunting preserve area" as that term is used
|
7 | | in the
Wildlife Code. This paragraph is exempt from the |
8 | | provisions
of
Section 3-55.
|
9 | | (21) A motor vehicle, as that term is defined in Section |
10 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
11 | | corporation, limited liability
company, society, association, |
12 | | foundation, or institution that is determined by
the |
13 | | Department to be organized and operated exclusively for |
14 | | educational
purposes. For purposes of this exemption, "a |
15 | | corporation, limited liability
company, society, association, |
16 | | foundation, or institution organized and
operated
exclusively |
17 | | for educational purposes" means all tax-supported public |
18 | | schools,
private schools that offer systematic instruction in |
19 | | useful branches of
learning by methods common to public |
20 | | schools and that compare favorably in
their scope and |
21 | | intensity with the course of study presented in tax-supported
|
22 | | schools, and vocational or technical schools or institutes |
23 | | organized and
operated exclusively to provide a course of |
24 | | study of not less than 6 weeks
duration and designed to prepare |
25 | | individuals to follow a trade or to pursue a
manual, |
26 | | technical, mechanical, industrial, business, or commercial
|
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1 | | occupation.
|
2 | | (22) Beginning January 1, 2000, personal property, |
3 | | including
food,
purchased through fundraising
events for the |
4 | | benefit of
a public or private elementary or
secondary school, |
5 | | a group of those schools, or one or more school
districts if |
6 | | the events are
sponsored by an entity recognized by the school |
7 | | district that consists
primarily of volunteers and includes
|
8 | | parents and teachers of the school children. This paragraph |
9 | | does not apply
to fundraising
events (i) for the benefit of |
10 | | private home instruction or (ii)
for which the fundraising |
11 | | entity purchases the personal property sold at
the events from |
12 | | another individual or entity that sold the property for the
|
13 | | purpose of resale by the fundraising entity and that
profits |
14 | | from the sale to the
fundraising entity. This paragraph is |
15 | | exempt
from the provisions
of Section 3-55.
|
16 | | (23) Beginning January 1, 2000
and through December 31, |
17 | | 2001, new or used automatic vending
machines that prepare and |
18 | | serve hot food and beverages, including coffee, soup,
and
|
19 | | other items, and replacement parts for these machines.
|
20 | | Beginning January 1,
2002 and through June 30, 2003, machines |
21 | | and parts for
machines used in commercial, coin-operated |
22 | | amusement
and vending business if a use or occupation tax is |
23 | | paid on the gross receipts
derived from
the use of the |
24 | | commercial, coin-operated amusement and vending machines.
This |
25 | | paragraph is exempt from the provisions of Section 3-55.
|
26 | | (24) Beginning
on August 2, 2001 (the effective date of |
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1 | | Public Act 92-227),
computers and communications equipment
|
2 | | utilized for any hospital purpose and equipment used in the |
3 | | diagnosis,
analysis, or treatment of hospital patients sold to |
4 | | a lessor who leases the
equipment, under a lease of one year or |
5 | | longer executed or in effect at the
time of the purchase, to a |
6 | | hospital that has been issued an active tax
exemption |
7 | | identification number by the Department under Section 1g of |
8 | | the
Retailers' Occupation Tax Act. This paragraph is exempt |
9 | | from the provisions of
Section 3-55.
|
10 | | (25) Beginning
on August 2, 2001 (the effective date of |
11 | | Public Act 92-227),
personal property sold to a lessor who
|
12 | | leases the property, under a lease of one year or longer |
13 | | executed or in effect
at the time of the purchase, to a |
14 | | governmental body that has been issued an
active tax exemption |
15 | | identification number by the Department under Section 1g
of |
16 | | the Retailers' Occupation Tax Act. This paragraph is exempt |
17 | | from the
provisions of Section 3-55.
|
18 | | (26) Beginning on January 1, 2002 and through June 30, |
19 | | 2016, tangible personal property
purchased
from an Illinois |
20 | | retailer by a taxpayer engaged in centralized purchasing
|
21 | | activities in Illinois who will, upon receipt of the property |
22 | | in Illinois,
temporarily store the property in Illinois (i) |
23 | | for the purpose of subsequently
transporting it outside this |
24 | | State for use or consumption thereafter solely
outside this |
25 | | State or (ii) for the purpose of being processed, fabricated, |
26 | | or
manufactured into, attached to, or incorporated into other |
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1 | | tangible personal
property to be transported outside this |
2 | | State and thereafter used or consumed
solely outside this |
3 | | State. The Director of Revenue shall, pursuant to rules
|
4 | | adopted in accordance with the Illinois Administrative |
5 | | Procedure Act, issue a
permit to any taxpayer in good standing |
6 | | with the Department who is eligible for
the exemption under |
7 | | this paragraph (26). The permit issued under
this paragraph |
8 | | (26) shall authorize the holder, to the extent and
in the |
9 | | manner specified in the rules adopted under this Act, to |
10 | | purchase
tangible personal property from a retailer exempt |
11 | | from the taxes imposed by
this Act. Taxpayers shall maintain |
12 | | all necessary books and records to
substantiate the use and |
13 | | consumption of all such tangible personal property
outside of |
14 | | the State of Illinois.
|
15 | | (27) Beginning January 1, 2008, tangible personal property |
16 | | used in the construction or maintenance of a community water |
17 | | supply, as defined under Section 3.145 of the Environmental |
18 | | Protection Act, that is operated by a not-for-profit |
19 | | corporation that holds a valid water supply permit issued |
20 | | under Title IV of the Environmental Protection Act. This |
21 | | paragraph is exempt from the provisions of Section 3-55.
|
22 | | (28) Tangible personal property sold to a |
23 | | public-facilities corporation, as described in Section |
24 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
25 | | constructing or furnishing a municipal convention hall, but |
26 | | only if the legal title to the municipal convention hall is |
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1 | | transferred to the municipality without any further |
2 | | consideration by or on behalf of the municipality at the time |
3 | | of the completion of the municipal convention hall or upon the |
4 | | retirement or redemption of any bonds or other debt |
5 | | instruments issued by the public-facilities corporation in |
6 | | connection with the development of the municipal convention |
7 | | hall. This exemption includes existing public-facilities |
8 | | corporations as provided in Section 11-65-25 of the Illinois |
9 | | Municipal Code. This paragraph is exempt from the provisions |
10 | | of Section 3-55. |
11 | | (29) Beginning January 1, 2010 and continuing through |
12 | | December 31, 2024, materials, parts, equipment, components, |
13 | | and furnishings incorporated into or upon an aircraft as part |
14 | | of the modification, refurbishment, completion, replacement, |
15 | | repair, or maintenance of the aircraft. This exemption |
16 | | includes consumable supplies used in the modification, |
17 | | refurbishment, completion, replacement, repair, and |
18 | | maintenance of aircraft . However, until January 1, 2024, this |
19 | | exemption , but excludes any materials, parts, equipment, |
20 | | components, and consumable supplies used in the modification, |
21 | | replacement, repair, and maintenance of aircraft engines or |
22 | | power plants, whether such engines or power plants are |
23 | | installed or uninstalled upon any such aircraft. "Consumable |
24 | | supplies" include, but are not limited to, adhesive, tape, |
25 | | sandpaper, general purpose lubricants, cleaning solution, |
26 | | latex gloves, and protective films. |
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1 | | Beginning January 1, 2010 and continuing through December |
2 | | 31, 2023, this This exemption applies only to the transfer of |
3 | | qualifying tangible personal property incident to the |
4 | | modification, refurbishment, completion, replacement, repair, |
5 | | or maintenance of an aircraft by persons who (i) hold an Air |
6 | | Agency Certificate and are empowered to operate an approved |
7 | | repair station by the Federal Aviation Administration, (ii) |
8 | | have a Class IV Rating, and (iii) conduct operations in |
9 | | accordance with Part 145 of the Federal Aviation Regulations. |
10 | | The exemption does not include aircraft operated by a |
11 | | commercial air carrier providing scheduled passenger air |
12 | | service pursuant to authority issued under Part 121 or Part |
13 | | 129 of the Federal Aviation Regulations. From January 1, 2024 |
14 | | through December 31, 2024, this exemption applies only to the |
15 | | use of qualifying tangible personal property by: (A) persons |
16 | | who modify, refurbish, complete, repair, replace, or maintain |
17 | | aircraft and who (i) hold an Air Agency Certificate and are |
18 | | empowered to operate an approved repair station by the Federal |
19 | | Aviation Administration, (ii) have a Class IV Rating, and |
20 | | (iii) conduct operations in accordance with Part 145 of the |
21 | | Federal Aviation Regulations; and (B) persons who engage in |
22 | | the modification, replacement, repair, and maintenance of |
23 | | aircraft engines or power plants without regard to whether or |
24 | | not those persons meet the qualifications of item (A). |
25 | | The changes made to this paragraph (29) by Public Act |
26 | | 98-534 are declarative of existing law. It is the intent of the |
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1 | | General Assembly that the exemption under this paragraph (29) |
2 | | applies continuously from January 1, 2010 through December 31, |
3 | | 2024; however, no claim for credit or refund is allowed for |
4 | | taxes paid as a result of the disallowance of this exemption on |
5 | | or after January 1, 2015 and prior to February 5, 2020 ( the |
6 | | effective date of Public Act 101-629) this amendatory Act of |
7 | | the 101st General Assembly . |
8 | | (30) Beginning January 1, 2017 and through December 31, |
9 | | 2026, menstrual pads, tampons, and menstrual cups. |
10 | | (31) Tangible personal property transferred to a purchaser |
11 | | who is exempt from tax by operation of federal law. This |
12 | | paragraph is exempt from the provisions of Section 3-55. |
13 | | (32) Qualified tangible personal property used in the |
14 | | construction or operation of a data center that has been |
15 | | granted a certificate of exemption by the Department of |
16 | | Commerce and Economic Opportunity, whether that tangible |
17 | | personal property is purchased by the owner, operator, or |
18 | | tenant of the data center or by a contractor or subcontractor |
19 | | of the owner, operator, or tenant. Data centers that would |
20 | | have qualified for a certificate of exemption prior to January |
21 | | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st |
22 | | General Assembly been in effect, may apply for and obtain an |
23 | | exemption for subsequent purchases of computer equipment or |
24 | | enabling software purchased or leased to upgrade, supplement, |
25 | | or replace computer equipment or enabling software purchased |
26 | | or leased in the original investment that would have |
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1 | | qualified. |
2 | | The Department of Commerce and Economic Opportunity shall |
3 | | grant a certificate of exemption under this item (32) to |
4 | | qualified data centers as defined by Section 605-1025 of the |
5 | | Department of Commerce and Economic Opportunity Law of the
|
6 | | Civil Administrative Code of Illinois. |
7 | | For the purposes of this item (32): |
8 | | "Data center" means a building or a series of |
9 | | buildings rehabilitated or constructed to house working |
10 | | servers in one physical location or multiple sites within |
11 | | 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; cabinets; |
18 | | telecommunications cabling infrastructure; raised floor |
19 | | systems; peripheral components or systems; software; |
20 | | mechanical, electrical, or plumbing systems; battery |
21 | | systems; cooling systems and towers; temperature control |
22 | | systems; other cabling; and other data center |
23 | | infrastructure equipment and systems necessary to operate |
24 | | qualified tangible personal property, including fixtures; |
25 | | and component parts of any of the foregoing, including |
26 | | installation, maintenance, repair, refurbishment, and |
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1 | | replacement of qualified tangible personal property to |
2 | | generate, transform, transmit, distribute, or manage |
3 | | electricity necessary to operate qualified tangible |
4 | | personal property; and all other tangible personal |
5 | | property that is essential to the operations of a computer |
6 | | data center. The term "qualified tangible personal |
7 | | property" also includes building materials physically |
8 | | incorporated in to the qualifying data center. To document |
9 | | the exemption allowed under this Section, the retailer |
10 | | must obtain from the purchaser a copy of the certificate |
11 | | of eligibility issued by the Department of Commerce and |
12 | | Economic Opportunity. |
13 | | This item (32) is exempt from the provisions of Section |
14 | | 3-55. |
15 | | (33) Beginning July 1, 2022, breast pumps, breast pump |
16 | | collection and storage supplies, and breast pump kits. This |
17 | | item (33) is exempt from the provisions of Section 3-55. As |
18 | | used in this item (33): |
19 | | "Breast pump" means an electrically controlled or |
20 | | manually controlled pump device designed or marketed to be |
21 | | used to express milk from a human breast during lactation, |
22 | | including the pump device and any battery, AC adapter, or |
23 | | other power supply unit that is used to power the pump |
24 | | device and is packaged and sold with the pump device at the |
25 | | time of sale. |
26 | | "Breast pump collection and storage supplies" means |
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1 | | items of tangible personal property designed or marketed |
2 | | to be used in conjunction with a breast pump to collect |
3 | | milk expressed from a human breast and to store collected |
4 | | milk until it is ready for consumption. |
5 | | "Breast pump collection and storage supplies" |
6 | | includes, but is not limited to: breast shields and breast |
7 | | shield connectors; breast pump tubes and tubing adapters; |
8 | | breast pump valves and membranes; backflow protectors and |
9 | | backflow protector adaptors; bottles and bottle caps |
10 | | specific to the operation of the breast pump; and breast |
11 | | milk storage bags. |
12 | | "Breast pump collection and storage supplies" does not |
13 | | include: (1) bottles and bottle caps not specific to the |
14 | | operation of the breast pump; (2) breast pump travel bags |
15 | | and other similar carrying accessories, including ice |
16 | | packs, labels, and other similar products; (3) breast pump |
17 | | cleaning supplies; (4) nursing bras, bra pads, breast |
18 | | shells, and other similar products; and (5) creams, |
19 | | ointments, and other similar products that relieve |
20 | | breastfeeding-related symptoms or conditions of the |
21 | | breasts or nipples, unless sold as part of a breast pump |
22 | | kit that is pre-packaged by the breast pump manufacturer |
23 | | or distributor. |
24 | | "Breast pump kit" means a kit that: (1) contains no |
25 | | more than a breast pump, breast pump collection and |
26 | | storage supplies, a rechargeable battery for operating the |
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1 | | breast pump, a breastmilk cooler, bottle stands, ice |
2 | | packs, and a breast pump carrying case; and (2) is |
3 | | pre-packaged as a breast pump kit by the breast pump |
4 | | manufacturer or distributor. |
5 | | (34) (33) Tangible personal property sold by or on behalf |
6 | | of the State Treasurer pursuant to the Revised Uniform |
7 | | Unclaimed Property Act. This item (34) (33) is exempt from the |
8 | | provisions of Section 3-55. |
9 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
10 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article |
11 | | 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section |
12 | | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
|
13 | | Section 20. The Retailers' Occupation Tax Act is amended |
14 | | by changing Section 2-5 as follows:
|
15 | | (35 ILCS 120/2-5)
|
16 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from |
17 | | the sale of
the following tangible personal property are |
18 | | exempt from the tax imposed
by this Act:
|
19 | | (1) Farm chemicals.
|
20 | | (2) Farm machinery and equipment, both new and used, |
21 | | including that
manufactured on special order, certified by |
22 | | the purchaser to be used
primarily for production |
23 | | agriculture or State or federal agricultural
programs, |
24 | | including individual replacement parts for the machinery |
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1 | | and
equipment, including machinery and equipment purchased |
2 | | for lease,
and including implements of husbandry defined |
3 | | in Section 1-130 of
the Illinois Vehicle Code, farm |
4 | | machinery and agricultural chemical and
fertilizer |
5 | | spreaders, and nurse wagons required to be registered
|
6 | | under Section 3-809 of the Illinois Vehicle Code,
but
|
7 | | excluding other motor vehicles required to be registered |
8 | | under the Illinois
Vehicle Code.
Horticultural polyhouses |
9 | | or hoop houses used for propagating, growing, or
|
10 | | overwintering plants shall be considered farm machinery |
11 | | and equipment under
this item (2).
Agricultural chemical |
12 | | tender tanks and dry boxes shall include units sold
|
13 | | separately from a motor vehicle required to be licensed |
14 | | and units sold mounted
on a motor vehicle required to be |
15 | | licensed, if the selling price of the tender
is separately |
16 | | 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 |
9 | | by the retailer, certified by the user to be used
only for |
10 | | the 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 |
15 | | 1, 2004 through August 30, 2014, graphic arts machinery |
16 | | and equipment, including
repair and
replacement parts, |
17 | | both new and used, and including that manufactured on
|
18 | | special order or purchased for lease, certified by the |
19 | | purchaser to be used
primarily for graphic arts |
20 | | production.
Equipment includes chemicals or
chemicals |
21 | | acting as catalysts but only if
the chemicals or chemicals |
22 | | acting as catalysts effect a direct and immediate
change |
23 | | upon a
graphic arts product. Beginning on July 1, 2017, |
24 | | graphic arts machinery and equipment is included in the |
25 | | manufacturing and assembling machinery and equipment |
26 | | exemption under paragraph (14).
|
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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 |
9 | | the 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 |
23 | | and
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 |
7 | | the benefit of persons 65 years of age or older if the |
8 | | personal property
was not purchased by the enterprise for |
9 | | the 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 |
17 | | and operated primarily for the recreation of persons 55 |
18 | | years of
age or older. A limited liability company may |
19 | | qualify for the exemption under
this paragraph only if the |
20 | | limited liability company is organized and operated
|
21 | | exclusively for educational purposes. On and after July 1, |
22 | | 1987, however, no
entity otherwise eligible for this |
23 | | exemption shall make tax-free purchases
unless it has an |
24 | | active 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 |
12 | | and replacement parts added
after the
initial purchase of |
13 | | such a motor vehicle if that motor vehicle is used in a
|
14 | | manner 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 |
18 | | any commercial or industrial enterprise whether for-hire |
19 | | or 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 |
6 | | the sale or lease is made directly by the manufacturer or |
7 | | by
some other person, whether the materials used in the |
8 | | process are owned by
the manufacturer or some other |
9 | | person, or whether the sale or lease is made
apart from or |
10 | | as an incident to the seller's engaging in the service
|
11 | | occupation of producing machines, tools, dies, jigs, |
12 | | patterns, gauges, or
other similar items of no commercial |
13 | | value on special order for a particular
purchaser. The |
14 | | exemption provided by this paragraph (14) does not include |
15 | | machinery and equipment used in (i) the generation of |
16 | | electricity for wholesale or retail sale; (ii) the |
17 | | generation or treatment of natural or artificial gas for |
18 | | wholesale or retail sale that is delivered to customers |
19 | | through pipes, pipelines, or mains; or (iii) the treatment |
20 | | of water for wholesale or retail sale that is delivered to |
21 | | customers through pipes, pipelines, or mains. The |
22 | | provisions of Public Act 98-583 are declaratory of |
23 | | existing law as to the meaning and scope of this |
24 | | exemption. Beginning on July 1, 2017, the exemption |
25 | | provided by this paragraph (14) includes, but is not |
26 | | limited to, graphic arts machinery and equipment, as |
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1 | | defined in paragraph (4) of this Section.
|
2 | | (15) Proceeds of mandatory service charges separately |
3 | | stated on
customers' bills for purchase and consumption of |
4 | | food and beverages, to the
extent that the proceeds of the |
5 | | service charge are in fact turned over as
tips or as a |
6 | | substitute for tips to the employees who participate |
7 | | directly
in preparing, serving, hosting or cleaning up the |
8 | | food or beverage function
with respect to which the |
9 | | service charge is imposed.
|
10 | | (16) Tangible personal property sold to a purchaser if |
11 | | the purchaser is exempt from use tax by operation of |
12 | | federal law. This paragraph is exempt from the provisions |
13 | | of Section 2-70.
|
14 | | (17) Tangible personal property sold to a common |
15 | | carrier by rail or
motor that
receives the physical |
16 | | possession of the property in Illinois and that
transports |
17 | | the property, or shares with another common carrier in the
|
18 | | transportation of the property, out of Illinois on a |
19 | | standard uniform bill
of lading showing the seller of the |
20 | | property as the shipper or consignor of
the property to a |
21 | | destination outside Illinois, for use outside Illinois.
|
22 | | (18) Legal tender, currency, medallions, or gold or |
23 | | silver coinage
issued by the State of Illinois, the |
24 | | government of the United States of
America, or the |
25 | | government of any foreign country, and bullion.
|
26 | | (19) Until July 1, 2003, oil field exploration, |
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1 | | drilling, and production
equipment, including
(i) rigs and |
2 | | parts of rigs, rotary rigs, cable tool
rigs, and workover |
3 | | rigs, (ii) pipe and tubular goods, including casing and
|
4 | | drill strings, (iii) pumps and pump-jack units, (iv) |
5 | | storage tanks and flow
lines, (v) any individual |
6 | | replacement part for oil field exploration,
drilling, and |
7 | | production equipment, and (vi) machinery and equipment |
8 | | purchased
for lease; but
excluding motor vehicles required |
9 | | to be registered under the Illinois
Vehicle Code.
|
10 | | (20) Photoprocessing machinery and equipment, |
11 | | including repair and
replacement parts, both new and used, |
12 | | including that manufactured on
special order, certified by |
13 | | the purchaser to be used primarily for
photoprocessing, |
14 | | and including photoprocessing machinery and equipment
|
15 | | purchased for lease.
|
16 | | (21) Until July 1, 2028, coal and aggregate |
17 | | exploration, mining, off-highway hauling,
processing,
|
18 | | maintenance, and reclamation equipment, including
|
19 | | replacement parts and equipment, and including
equipment |
20 | | purchased for lease, but excluding motor vehicles required |
21 | | to be
registered under the Illinois Vehicle Code. The |
22 | | changes made to this Section by Public Act 97-767 apply on |
23 | | and after July 1, 2003, but no claim for credit or refund |
24 | | is allowed on or after August 16, 2013 (the effective date |
25 | | of Public Act 98-456)
for such taxes paid during the |
26 | | period beginning July 1, 2003 and ending on August 16, |
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1 | | 2013 (the effective date of Public Act 98-456).
|
2 | | (22) Until June 30, 2013, fuel and petroleum products |
3 | | sold to or used by an air carrier,
certified by the carrier |
4 | | to be used for consumption, shipment, or storage
in the |
5 | | conduct of its business as an air common carrier, for a |
6 | | flight
destined for or returning from a location or |
7 | | locations
outside the United States without regard to |
8 | | previous or subsequent domestic
stopovers.
|
9 | | Beginning July 1, 2013, fuel and petroleum products |
10 | | sold to or used by an air carrier, certified by the carrier |
11 | | to be used for consumption, shipment, or storage in the |
12 | | conduct of its business as an air common carrier, for a |
13 | | flight that (i) is engaged in foreign trade or is engaged |
14 | | in trade between the United States and any of its |
15 | | possessions and (ii) transports at least one individual or |
16 | | package for hire from the city of origination to the city |
17 | | of final destination on the same aircraft, without regard |
18 | | to a change in the flight number of that aircraft. |
19 | | (23) A transaction in which the purchase order is |
20 | | received by a florist
who is located outside Illinois, but |
21 | | who has a florist located in Illinois
deliver the property |
22 | | to the purchaser or the purchaser's donee in Illinois.
|
23 | | (24) Fuel consumed or used in the operation of ships, |
24 | | barges, or vessels
that are used primarily in or for the |
25 | | transportation of property or the
conveyance of persons |
26 | | for hire on rivers bordering on this State if the
fuel is |
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1 | | delivered by the seller to the purchaser's barge, ship, or |
2 | | vessel
while it is afloat upon that bordering river.
|
3 | | (25) Except as provided in item (25-5) of this |
4 | | Section, a
motor vehicle sold in this State to a |
5 | | nonresident even though the
motor vehicle is delivered to |
6 | | the nonresident in this State, if the motor
vehicle is not |
7 | | to be titled in this State, and if a drive-away permit
is |
8 | | issued to the motor vehicle as provided in Section 3-603 |
9 | | of the Illinois
Vehicle Code or if the nonresident |
10 | | purchaser has vehicle registration
plates to transfer to |
11 | | the motor vehicle upon returning to his or her home
state. |
12 | | The issuance of the drive-away permit or having
the
|
13 | | out-of-state registration plates to be transferred is |
14 | | prima facie evidence
that the motor vehicle will not be |
15 | | titled in this State.
|
16 | | (25-5) The exemption under item (25) does not apply if |
17 | | the state in which the motor vehicle will be titled does |
18 | | not allow a reciprocal exemption for a motor vehicle sold |
19 | | and delivered in that state to an Illinois resident but |
20 | | titled in Illinois. The tax collected under this Act on |
21 | | the sale of a motor vehicle in this State to a resident of |
22 | | another state that does not allow a reciprocal exemption |
23 | | shall be imposed at a rate equal to the state's rate of tax |
24 | | on taxable property in the state in which the purchaser is |
25 | | a resident, except that the tax shall not exceed the tax |
26 | | that would otherwise be imposed under this Act. At the |
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1 | | time of the sale, the purchaser shall execute a statement, |
2 | | signed under penalty of perjury, of his or her intent to |
3 | | title the vehicle in the state in which the purchaser is a |
4 | | resident within 30 days after the sale and of the fact of |
5 | | the payment to the State of Illinois of tax in an amount |
6 | | equivalent to the state's rate of tax on taxable property |
7 | | in his or her state of residence and shall submit the |
8 | | statement to the appropriate tax collection agency in his |
9 | | or her state of residence. In addition, the retailer must |
10 | | retain a signed copy of the statement in his or her |
11 | | records. Nothing in this item shall be construed to |
12 | | require the removal of the vehicle from this state |
13 | | following the filing of an intent to title the vehicle in |
14 | | the purchaser's state of residence if the purchaser titles |
15 | | the vehicle in his or her state of residence within 30 days |
16 | | after the date of sale. The tax collected under this Act in |
17 | | accordance with this item (25-5) shall be proportionately |
18 | | distributed as if the tax were collected at the 6.25% |
19 | | general rate imposed under this Act.
|
20 | | (25-7) Beginning on July 1, 2007, no tax is imposed |
21 | | under this Act on the sale of an aircraft, as defined in |
22 | | Section 3 of the Illinois Aeronautics Act, if all of the |
23 | | following conditions are met: |
24 | | (1) the aircraft leaves this State within 15 days |
25 | | after the later of either the issuance of the final |
26 | | billing for the sale of the aircraft, or the |
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1 | | authorized approval for return to service, completion |
2 | | of the maintenance record entry, and completion of the |
3 | | test flight and ground test for inspection, as |
4 | | required by 14 CFR C.F.R. 91.407; |
5 | | (2) the aircraft is not based or registered in |
6 | | this State after the sale of the aircraft; and |
7 | | (3) the seller retains in his or her books and |
8 | | records and provides to the Department a signed and |
9 | | dated certification from the purchaser, on a form |
10 | | prescribed by the Department, certifying that the |
11 | | requirements of this item (25-7) are met. The |
12 | | certificate must also include the name and address of |
13 | | the purchaser, the address of the location where the |
14 | | aircraft is to be titled or registered, the address of |
15 | | the primary physical location of the aircraft, and |
16 | | other information that the Department may reasonably |
17 | | require. |
18 | | For purposes of this item (25-7): |
19 | | "Based in this State" means hangared, stored, or |
20 | | otherwise used, excluding post-sale customizations as |
21 | | defined in this Section, for 10 or more days in each |
22 | | 12-month period immediately following the date of the sale |
23 | | of the aircraft. |
24 | | "Registered in this State" means an aircraft |
25 | | registered with the Department of Transportation, |
26 | | Aeronautics Division, or titled or registered with the |
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1 | | Federal Aviation Administration to an address located in |
2 | | this State. |
3 | | This paragraph (25-7) is exempt from the provisions
of
|
4 | | Section 2-70.
|
5 | | (26) Semen used for artificial insemination of |
6 | | livestock for direct
agricultural production.
|
7 | | (27) Horses, or interests in horses, registered with |
8 | | and meeting the
requirements of any of the
Arabian Horse |
9 | | Club Registry of America, Appaloosa Horse Club, American |
10 | | Quarter
Horse Association, United States
Trotting |
11 | | Association, or Jockey Club, as appropriate, used for
|
12 | | purposes of breeding or racing for prizes. This item (27) |
13 | | is exempt from the provisions of Section 2-70, and the |
14 | | exemption provided for under this item (27) applies for |
15 | | all periods beginning May 30, 1995, but no claim for |
16 | | credit or refund is allowed on or after January 1, 2008 |
17 | | (the effective date of Public Act 95-88)
for such taxes |
18 | | paid during the period beginning May 30, 2000 and ending |
19 | | on January 1, 2008 (the effective date of Public Act |
20 | | 95-88).
|
21 | | (28) Computers and communications equipment utilized |
22 | | for any
hospital
purpose
and equipment used in the |
23 | | diagnosis,
analysis, or treatment of hospital patients |
24 | | sold to a lessor who leases the
equipment, under a lease of |
25 | | one year or longer executed or in effect at the
time of the |
26 | | purchase, to a
hospital
that has been issued an active tax |
|
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1 | | exemption identification number by the
Department under |
2 | | Section 1g of this Act.
|
3 | | (29) Personal property sold to a lessor who leases the
|
4 | | property, under a
lease of one year or longer executed or |
5 | | in effect at the time of the purchase,
to a governmental |
6 | | body
that has been issued an active tax exemption |
7 | | identification number by the
Department under Section 1g |
8 | | of this Act.
|
9 | | (30) Beginning with taxable years ending on or after |
10 | | December
31, 1995
and
ending with taxable years ending on |
11 | | or before December 31, 2004,
personal property that is
|
12 | | donated for disaster relief to be used in a State or |
13 | | federally declared
disaster area in Illinois or bordering |
14 | | Illinois by a manufacturer or retailer
that is registered |
15 | | in this State to a corporation, society, association,
|
16 | | foundation, or institution that has been issued a sales |
17 | | tax exemption
identification number by the Department that |
18 | | assists victims of the disaster
who reside within the |
19 | | declared disaster area.
|
20 | | (31) Beginning with taxable years ending on or after |
21 | | December
31, 1995 and
ending with taxable years ending on |
22 | | or before December 31, 2004, personal
property that is |
23 | | used in the performance of infrastructure repairs in this
|
24 | | State, including but not limited to municipal roads and |
25 | | streets, access roads,
bridges, sidewalks, waste disposal |
26 | | systems, water and sewer line extensions,
water |
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1 | | distribution and purification facilities, storm water |
2 | | drainage and
retention facilities, and sewage treatment |
3 | | facilities, resulting from a State
or federally declared |
4 | | disaster in Illinois or bordering Illinois when such
|
5 | | repairs are initiated on facilities located in the |
6 | | declared disaster area
within 6 months after the disaster.
|
7 | | (32) Beginning July 1, 1999, game or game birds sold |
8 | | at a "game breeding
and
hunting preserve area" as that |
9 | | term is used
in the
Wildlife Code. This paragraph is |
10 | | exempt from the provisions
of
Section 2-70.
|
11 | | (33) A motor vehicle, as that term is defined in |
12 | | Section 1-146
of the
Illinois Vehicle Code, that is |
13 | | donated to a corporation, limited liability
company, |
14 | | society, association, foundation, or institution that is |
15 | | determined by
the Department to be organized and operated |
16 | | exclusively for educational
purposes. For purposes of this |
17 | | exemption, "a corporation, limited liability
company, |
18 | | society, association, foundation, or institution organized |
19 | | and
operated
exclusively for educational purposes" means |
20 | | all tax-supported public schools,
private schools that |
21 | | offer systematic instruction in useful branches of
|
22 | | learning by methods common to public schools and that |
23 | | compare favorably in
their scope and intensity with the |
24 | | course of study presented in tax-supported
schools, and |
25 | | vocational or technical schools or institutes organized |
26 | | and
operated exclusively to provide a course of study of |
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1 | | not less than 6 weeks
duration and designed to prepare |
2 | | individuals to follow a trade or to pursue a
manual, |
3 | | technical, mechanical, industrial, business, or commercial
|
4 | | occupation.
|
5 | | (34) Beginning January 1, 2000, personal property, |
6 | | including food, purchased
through fundraising events for |
7 | | the benefit of a public or private elementary or
secondary |
8 | | school, a group of those schools, or one or more school |
9 | | districts if
the events are sponsored by an entity |
10 | | recognized by the school district that
consists primarily |
11 | | of volunteers and includes parents and teachers of the
|
12 | | school children. This paragraph does not apply to |
13 | | fundraising events (i) for
the benefit of private home |
14 | | instruction or (ii) for which the fundraising
entity |
15 | | purchases the personal property sold at the events from |
16 | | another
individual or entity that sold the property for |
17 | | the purpose of resale by the
fundraising entity and that |
18 | | profits from the sale to the fundraising entity.
This |
19 | | paragraph is exempt from the provisions of Section 2-70.
|
20 | | (35) Beginning January 1, 2000 and through December |
21 | | 31, 2001, new or used
automatic vending machines that |
22 | | prepare and serve hot food and beverages,
including |
23 | | coffee, soup, and other items, and replacement parts for |
24 | | these
machines. Beginning January 1, 2002 and through June |
25 | | 30, 2003, machines
and parts for machines used in
|
26 | | commercial, coin-operated amusement and vending business |
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1 | | if a use or occupation
tax is paid on the gross receipts |
2 | | derived from the use of the commercial,
coin-operated |
3 | | amusement and vending machines. This paragraph is exempt |
4 | | from
the provisions of Section 2-70.
|
5 | | (35-5) Beginning August 23, 2001 and through June 30, |
6 | | 2016, food for human consumption that is to be consumed |
7 | | off
the premises where it is sold (other than alcoholic |
8 | | beverages, soft drinks,
and food that has been prepared |
9 | | for immediate consumption) and prescription
and |
10 | | nonprescription medicines, drugs, medical appliances, and |
11 | | insulin, urine
testing materials, syringes, and needles |
12 | | used by diabetics, for human use, when
purchased for use |
13 | | by a person receiving medical assistance under Article V |
14 | | of
the Illinois Public Aid Code who resides in a licensed |
15 | | long-term care facility,
as defined in the Nursing Home |
16 | | Care Act, or a licensed facility as defined in the ID/DD |
17 | | Community Care Act, the MC/DD Act, or the Specialized |
18 | | Mental Health Rehabilitation Act of 2013.
|
19 | | (36) Beginning August 2, 2001, computers and |
20 | | communications equipment
utilized for any hospital purpose |
21 | | and equipment used in the diagnosis,
analysis, or |
22 | | treatment of hospital patients sold to a lessor who leases |
23 | | the
equipment, under a lease of one year or longer |
24 | | executed or in effect at the
time of the purchase, to a |
25 | | hospital that has been issued an active tax
exemption |
26 | | identification number by the Department under Section 1g |
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1 | | of this Act.
This paragraph is exempt from the provisions |
2 | | of Section 2-70.
|
3 | | (37) Beginning August 2, 2001, personal property sold |
4 | | to a lessor who
leases the property, under a lease of one |
5 | | year or longer executed or in effect
at the time of the |
6 | | purchase, to a governmental body that has been issued an
|
7 | | active tax exemption identification number by the |
8 | | Department under Section 1g
of this Act. This paragraph is |
9 | | exempt from the provisions of Section 2-70.
|
10 | | (38) Beginning on January 1, 2002 and through June 30, |
11 | | 2016, tangible personal property purchased
from an |
12 | | Illinois retailer by a taxpayer engaged in centralized |
13 | | purchasing
activities in Illinois who will, upon receipt |
14 | | of the property in Illinois,
temporarily store the |
15 | | property in Illinois (i) for the purpose of subsequently
|
16 | | transporting it outside this State for use or consumption |
17 | | thereafter solely
outside this State or (ii) for the |
18 | | purpose of being processed, fabricated, or
manufactured |
19 | | into, attached to, or incorporated into other tangible |
20 | | personal
property to be transported outside this State and |
21 | | thereafter used or consumed
solely outside this State. The |
22 | | Director of Revenue shall, pursuant to rules
adopted in |
23 | | accordance with the Illinois Administrative Procedure Act, |
24 | | issue a
permit to any taxpayer in good standing with the |
25 | | Department who is eligible for
the exemption under this |
26 | | paragraph (38). The permit issued under
this paragraph |
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1 | | (38) shall authorize the holder, to the extent and
in the |
2 | | manner specified in the rules adopted under this Act, to |
3 | | purchase
tangible personal property from a retailer exempt |
4 | | from the taxes imposed by
this Act. Taxpayers shall |
5 | | maintain all necessary books and records to
substantiate |
6 | | the use and consumption of all such tangible personal |
7 | | property
outside of the State of Illinois.
|
8 | | (39) Beginning January 1, 2008, tangible personal |
9 | | property used in the construction or maintenance of a |
10 | | community water supply, as defined under Section 3.145 of |
11 | | the Environmental Protection Act, that is operated by a |
12 | | not-for-profit corporation that holds a valid water supply |
13 | | permit issued under Title IV of the Environmental |
14 | | Protection Act. This paragraph is exempt from the |
15 | | provisions of Section 2-70.
|
16 | | (40) Beginning January 1, 2010 and continuing through |
17 | | December 31, 2024, materials, parts, equipment, |
18 | | components, and furnishings incorporated into or upon an |
19 | | aircraft as part of the modification, refurbishment, |
20 | | completion, replacement, repair, or maintenance of the |
21 | | aircraft. This exemption includes consumable supplies used |
22 | | in the modification, refurbishment, completion, |
23 | | replacement, repair, and maintenance of aircraft . However, |
24 | | until January 1, 2024, this exemption , but excludes any |
25 | | materials, parts, equipment, components, and consumable |
26 | | supplies used in the modification, replacement, repair, |
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1 | | and maintenance of aircraft engines or power plants, |
2 | | whether such engines or power plants are installed or |
3 | | uninstalled upon any such aircraft. "Consumable supplies" |
4 | | include, but are not limited to, adhesive, tape, |
5 | | sandpaper, general purpose lubricants, cleaning solution, |
6 | | latex gloves, and protective films. |
7 | | Beginning January 1, 2010 and continuing through |
8 | | December 31, 2023, this This exemption applies only to the |
9 | | sale of qualifying tangible personal property to persons |
10 | | who modify, refurbish, complete, replace, or maintain an |
11 | | aircraft and who (i) hold an Air Agency Certificate and |
12 | | are empowered to operate an approved repair station by the |
13 | | Federal Aviation Administration, (ii) have a Class IV |
14 | | Rating, and (iii) conduct operations in accordance with |
15 | | Part 145 of the Federal Aviation Regulations. The |
16 | | exemption does not include aircraft operated by a |
17 | | commercial air carrier providing scheduled passenger air |
18 | | service pursuant to authority issued under Part 121 or |
19 | | Part 129 of the Federal Aviation Regulations. From January |
20 | | 1, 2024 through December 31, 2024, this exemption applies |
21 | | only to the use of qualifying tangible personal property |
22 | | by: (A) persons who modify, refurbish, complete, repair, |
23 | | replace, or maintain aircraft and who (i) hold an Air |
24 | | Agency Certificate and are empowered to operate an |
25 | | approved repair station by the Federal Aviation |
26 | | Administration, (ii) have a Class IV Rating, and (iii) |
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1 | | conduct operations in accordance with Part 145 of the |
2 | | Federal Aviation Regulations; and (B) persons who engage |
3 | | in the modification, replacement, repair, and maintenance |
4 | | of aircraft engines or power plants without regard to |
5 | | whether or not those persons meet the qualifications of |
6 | | item (A). |
7 | | The changes made to this paragraph (40) by Public Act |
8 | | 98-534 are declarative of existing law. It is the intent |
9 | | of the General Assembly that the exemption under this |
10 | | paragraph (40) applies continuously from January 1, 2010 |
11 | | through December 31, 2024; however, no claim for credit or |
12 | | refund is allowed for taxes paid as a result of the |
13 | | disallowance of this exemption on or after January 1, 2015 |
14 | | and prior to February 5, 2020 ( the effective date of |
15 | | Public Act 101-629) this amendatory Act of the 101st |
16 | | General Assembly . |
17 | | (41) Tangible personal property sold to a |
18 | | public-facilities corporation, as described in Section |
19 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
20 | | constructing or furnishing a municipal convention hall, |
21 | | but only if the legal title to the municipal convention |
22 | | hall is transferred to the municipality without any |
23 | | further consideration by or on behalf of the municipality |
24 | | at the time of the completion of the municipal convention |
25 | | hall or upon the retirement or redemption of any bonds or |
26 | | other debt instruments issued by the public-facilities |
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1 | | corporation in connection with the development of the |
2 | | municipal convention hall. This exemption includes |
3 | | existing public-facilities corporations as provided in |
4 | | Section 11-65-25 of the Illinois Municipal Code. This |
5 | | paragraph is exempt from the provisions of Section 2-70. |
6 | | (42) Beginning January 1, 2017 and through December |
7 | | 31, 2026, menstrual pads, tampons, and menstrual cups. |
8 | | (43) Merchandise that is subject to the Rental |
9 | | Purchase Agreement Occupation and Use Tax. The purchaser |
10 | | must certify that the item is purchased to be rented |
11 | | subject to a rental purchase agreement, as defined in the |
12 | | Rental Purchase Agreement Act, and provide proof of |
13 | | registration under the Rental Purchase Agreement |
14 | | Occupation and Use Tax Act. This paragraph is exempt from |
15 | | the provisions of Section 2-70. |
16 | | (44) Qualified tangible personal property used in the |
17 | | construction or operation of a data center that has been |
18 | | granted a certificate of exemption by the Department of |
19 | | Commerce and Economic Opportunity, whether that tangible |
20 | | personal property is purchased by the owner, operator, or |
21 | | tenant of the data center or by a contractor or |
22 | | subcontractor of the owner, operator, or tenant. Data |
23 | | centers that would have qualified for a certificate of |
24 | | exemption prior to January 1, 2020 had Public Act 101-31 |
25 | | this amendatory Act of the 101st General Assembly been in |
26 | | effect, may apply for and obtain an exemption for |
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1 | | subsequent purchases of computer equipment or enabling |
2 | | software purchased or leased to upgrade, supplement, or |
3 | | replace computer equipment or enabling software purchased |
4 | | or leased in the original investment that would have |
5 | | qualified. |
6 | | The Department of Commerce and Economic Opportunity |
7 | | shall grant a certificate of exemption under this item |
8 | | (44) to qualified data centers as defined by Section |
9 | | 605-1025 of the Department of Commerce and Economic |
10 | | Opportunity Law of the
Civil Administrative Code of |
11 | | Illinois. |
12 | | For the purposes of this item (44): |
13 | | "Data center" means a building or a series of |
14 | | buildings rehabilitated or constructed to house |
15 | | working servers in one physical location or multiple |
16 | | sites within the State of Illinois. |
17 | | "Qualified tangible personal property" means: |
18 | | electrical systems and equipment; climate control and |
19 | | chilling equipment and systems; mechanical systems and |
20 | | equipment; monitoring and secure systems; emergency |
21 | | generators; hardware; computers; servers; data storage |
22 | | devices; network connectivity equipment; racks; |
23 | | cabinets; telecommunications cabling infrastructure; |
24 | | raised floor systems; peripheral components or |
25 | | systems; software; mechanical, electrical, or plumbing |
26 | | systems; battery systems; cooling systems and towers; |
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1 | | temperature control systems; other cabling; and other |
2 | | data center infrastructure equipment and systems |
3 | | necessary to operate qualified tangible personal |
4 | | property, including fixtures; and component parts of |
5 | | any of the foregoing, including installation, |
6 | | maintenance, repair, refurbishment, and replacement of |
7 | | qualified tangible personal property to generate, |
8 | | transform, transmit, distribute, or manage electricity |
9 | | necessary to operate qualified tangible personal |
10 | | property; and all other tangible personal property |
11 | | that is essential to the operations of a computer data |
12 | | center. The term "qualified tangible personal |
13 | | property" also includes building materials physically |
14 | | incorporated into the qualifying data center. To |
15 | | document the exemption allowed under this Section, the |
16 | | retailer must obtain from the purchaser a copy of the |
17 | | certificate of eligibility issued by the Department of |
18 | | Commerce and Economic Opportunity. |
19 | | This item (44) is exempt from the provisions of |
20 | | Section 2-70. |
21 | | (45) Beginning January 1, 2020 and through December |
22 | | 31, 2020, sales of tangible personal property made by a |
23 | | marketplace seller over a marketplace for which tax is due |
24 | | under this Act but for which use tax has been collected and |
25 | | remitted to the Department by a marketplace facilitator |
26 | | under Section 2d of the Use Tax Act are exempt from tax |
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1 | | under this Act. A marketplace seller claiming this |
2 | | exemption shall maintain books and records demonstrating |
3 | | that the use tax on such sales has been collected and |
4 | | remitted by a marketplace facilitator. Marketplace sellers |
5 | | that have properly remitted tax under this Act on such |
6 | | sales may file a claim for credit as provided in Section 6 |
7 | | of this Act. No claim is allowed, however, for such taxes |
8 | | for which a credit or refund has been issued to the |
9 | | marketplace facilitator under the Use Tax Act, or for |
10 | | which the marketplace facilitator has filed a claim for |
11 | | credit or refund under the Use Tax Act. |
12 | | (46) Beginning July 1, 2022, breast pumps, breast pump |
13 | | collection and storage supplies, and breast pump kits. |
14 | | This item (46) is exempt from the provisions of Section |
15 | | 2-70. As used in this item (46): |
16 | | "Breast pump" means an electrically controlled or |
17 | | manually controlled pump device designed or marketed to be |
18 | | used to express milk from a human breast during lactation, |
19 | | including the pump device and any battery, AC adapter, or |
20 | | other power supply unit that is used to power the pump |
21 | | device and is packaged and sold with the pump device at the |
22 | | time of sale. |
23 | | "Breast pump collection and storage supplies" means |
24 | | items of tangible personal property designed or marketed |
25 | | to be used in conjunction with a breast pump to collect |
26 | | milk expressed from a human breast and to store collected |
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1 | | milk until it is ready for consumption. |
2 | | "Breast pump collection and storage supplies" |
3 | | includes, but is not limited to: breast shields and breast |
4 | | shield connectors; breast pump tubes and tubing adapters; |
5 | | breast pump valves and membranes; backflow protectors and |
6 | | backflow protector adaptors; bottles and bottle caps |
7 | | specific to the operation of the breast pump; and breast |
8 | | milk storage bags. |
9 | | "Breast pump collection and storage supplies" does not |
10 | | include: (1) bottles and bottle caps not specific to the |
11 | | operation of the breast pump; (2) breast pump travel bags |
12 | | and other similar carrying accessories, including ice |
13 | | packs, labels, and other similar products; (3) breast pump |
14 | | cleaning supplies; (4) nursing bras, bra pads, breast |
15 | | shells, and other similar products; and (5) creams, |
16 | | ointments, and other similar products that relieve |
17 | | breastfeeding-related symptoms or conditions of the |
18 | | breasts or nipples, unless sold as part of a breast pump |
19 | | kit that is pre-packaged by the breast pump manufacturer |
20 | | or distributor. |
21 | | "Breast pump kit" means a kit that: (1) contains no |
22 | | more than a breast pump, breast pump collection and |
23 | | storage supplies, a rechargeable battery for operating the |
24 | | breast pump, a breastmilk cooler, bottle stands, ice |
25 | | packs, and a breast pump carrying case; and (2) is |
26 | | pre-packaged as a breast pump kit by the breast pump |
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1 | | manufacturer or distributor. |
2 | | (47) (46) Tangible personal property sold by or on |
3 | | behalf of the State Treasurer pursuant to the Revised |
4 | | Uniform Unclaimed Property Act. This item (47) (46) is |
5 | | exempt from the provisions of Section 2-70. |
6 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
7 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. |
8 | | 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; |
9 | | 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, |
10 | | eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
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11 | | Section 99. Effective date. This Act takes effect upon |
12 | | becoming law.
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