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1 | AN ACT concerning revenue. | |||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||||||
3 | represented in the General Assembly: | |||||||||||||||||||||||||
4 | Section 5. The Use Tax Act is amended by changing Section | |||||||||||||||||||||||||
5 | 3-5 as follows: | |||||||||||||||||||||||||
6 | (35 ILCS 105/3-5) | |||||||||||||||||||||||||
7 | Sec. 3-5. Exemptions. Use of the following tangible | |||||||||||||||||||||||||
8 | personal property is exempt from the tax imposed by this Act: | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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, | ||||||
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. | ||||||
11 | (4) Except as otherwise provided in this Act, personal | ||||||
12 | property purchased by a governmental body, by a corporation, | ||||||
13 | society, association, foundation, or institution organized and | ||||||
14 | operated exclusively for charitable, religious, or educational | ||||||
15 | purposes, or by a not-for-profit corporation, society, | ||||||
16 | association, foundation, institution, or organization that has | ||||||
17 | no compensated officers or employees and that is organized and | ||||||
18 | operated primarily for the recreation of persons 55 years of | ||||||
19 | age or older. A limited liability company may qualify for the | ||||||
20 | exemption under this paragraph only if the limited liability | ||||||
21 | company is organized and operated exclusively for educational | ||||||
22 | purposes. On and after July 1, 1987, however, no entity | ||||||
23 | otherwise eligible for this exemption shall make tax-free | ||||||
24 | purchases unless it has an active exemption identification | ||||||
25 | number issued by the Department. | ||||||
26 | (5) Until July 1, 2003, a passenger car that is a |
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1 | replacement vehicle to the extent that the purchase price of | ||||||
2 | the car is subject to the Replacement Vehicle Tax. | ||||||
3 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
4 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
5 | equipment, including repair and replacement parts, both new | ||||||
6 | and used, and including that manufactured on special order, | ||||||
7 | certified by the purchaser to be used primarily for graphic | ||||||
8 | arts production, and including machinery and equipment | ||||||
9 | purchased for lease. Equipment includes chemicals or chemicals | ||||||
10 | acting as catalysts but only if the chemicals or chemicals | ||||||
11 | acting as catalysts effect a direct and immediate change upon | ||||||
12 | a graphic arts product. Beginning on July 1, 2017, graphic | ||||||
13 | arts machinery and equipment is included in the manufacturing | ||||||
14 | and assembling machinery and equipment exemption under | ||||||
15 | paragraph (18). | ||||||
16 | (7) Farm chemicals. | ||||||
17 | (8) 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 | (9) Personal property purchased from a teacher-sponsored | ||||||
22 | student organization affiliated with an elementary or | ||||||
23 | secondary school located in Illinois. | ||||||
24 | (10) A motor vehicle that is used for automobile renting, | ||||||
25 | as defined in the Automobile Renting Occupation and Use Tax | ||||||
26 | Act. |
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1 | (11) Farm machinery and equipment, both new and used, | ||||||
2 | including that manufactured on special order, certified by the | ||||||
3 | purchaser to be used primarily for production agriculture or | ||||||
4 | State or federal agricultural programs, including individual | ||||||
5 | replacement parts for the machinery and equipment, including | ||||||
6 | machinery and equipment purchased for lease, and including | ||||||
7 | implements of husbandry defined in Section 1-130 of the | ||||||
8 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
9 | chemical and fertilizer spreaders, and nurse wagons required | ||||||
10 | to be registered under Section 3-809 of the Illinois Vehicle | ||||||
11 | Code, but excluding other motor vehicles required to be | ||||||
12 | registered under the Illinois Vehicle Code. Horticultural | ||||||
13 | polyhouses or hoop houses used for propagating, growing, or | ||||||
14 | overwintering plants shall be considered farm machinery and | ||||||
15 | equipment under this item (11). Agricultural chemical tender | ||||||
16 | tanks and dry boxes shall include units sold separately from a | ||||||
17 | motor vehicle required to be licensed and units sold mounted | ||||||
18 | on a motor vehicle required to be licensed if the selling price | ||||||
19 | of the tender is separately stated. | ||||||
20 | Farm machinery and equipment shall include precision | ||||||
21 | farming equipment that is installed or purchased to be | ||||||
22 | installed on farm machinery and equipment , including, but not | ||||||
23 | limited to, tractors, harvesters, sprayers, planters, seeders, | ||||||
24 | or spreaders. Precision farming equipment includes, but is not | ||||||
25 | limited to, soil testing sensors, computers, monitors, | ||||||
26 | software, global positioning and mapping systems, and other |
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1 | such equipment. | ||||||
2 | Farm machinery and equipment also includes computers, | ||||||
3 | sensors, software, and related equipment used primarily in the | ||||||
4 | computer-assisted operation of production agriculture | ||||||
5 | facilities, equipment, and activities such as, but not limited | ||||||
6 | to, the collection, monitoring, and correlation of animal and | ||||||
7 | crop data for the purpose of formulating animal diets and | ||||||
8 | agricultural chemicals. | ||||||
9 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
10 | also includes electrical power generation equipment used | ||||||
11 | primarily for production agriculture. | ||||||
12 | This item (11) is exempt from the provisions of Section | ||||||
13 | 3-90. | ||||||
14 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
15 | to or used by an air common carrier, certified by the carrier | ||||||
16 | to be used for consumption, shipment, or storage in the | ||||||
17 | conduct of its business as an air common carrier, for a flight | ||||||
18 | destined for or returning from a location or locations outside | ||||||
19 | the United States without regard to previous or subsequent | ||||||
20 | domestic stopovers. | ||||||
21 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
22 | to or used by an air carrier, certified by the carrier to be | ||||||
23 | used for consumption, shipment, or storage in the conduct of | ||||||
24 | its business as an air common carrier, for a flight that (i) is | ||||||
25 | engaged in foreign trade or is engaged in trade between the | ||||||
26 | United States and any of its possessions and (ii) transports |
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1 | at least one individual or package for hire from the city of | ||||||
2 | origination to the city of final destination on the same | ||||||
3 | aircraft, without regard to a change in the flight number of | ||||||
4 | that aircraft. | ||||||
5 | (13) Proceeds of mandatory service charges separately | ||||||
6 | stated on customers' bills for the purchase and consumption of | ||||||
7 | food and beverages purchased at retail from a retailer, to the | ||||||
8 | extent that the proceeds of the service charge are in fact | ||||||
9 | turned over as tips or as a substitute for tips to the | ||||||
10 | employees who participate directly in preparing, serving, | ||||||
11 | hosting or cleaning up the food or beverage function with | ||||||
12 | respect to which the service charge is imposed. | ||||||
13 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
14 | and production equipment, including (i) rigs and parts of | ||||||
15 | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) | ||||||
16 | pipe and tubular goods, including casing and drill strings, | ||||||
17 | (iii) pumps and pump-jack units, (iv) storage tanks and flow | ||||||
18 | lines, (v) any individual replacement part for oil field | ||||||
19 | exploration, drilling, and production equipment, and (vi) | ||||||
20 | machinery and equipment purchased for lease; but excluding | ||||||
21 | motor vehicles required to be registered under the Illinois | ||||||
22 | Vehicle Code. | ||||||
23 | (15) Photoprocessing machinery and equipment, including | ||||||
24 | repair and replacement parts, both new and used, including | ||||||
25 | that manufactured on special order, certified by the purchaser | ||||||
26 | to be used primarily for photoprocessing, and including |
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1 | photoprocessing machinery and equipment purchased for lease. | ||||||
2 | (16) Until July 1, 2028, coal and aggregate exploration, | ||||||
3 | mining, off-highway hauling, processing, maintenance, and | ||||||
4 | reclamation equipment, including replacement parts and | ||||||
5 | equipment, and including equipment purchased for lease, but | ||||||
6 | excluding motor vehicles required to be registered under the | ||||||
7 | Illinois Vehicle Code. The changes made to this Section by | ||||||
8 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
9 | for credit or refund is allowed on or after August 16, 2013 | ||||||
10 | (the effective date of Public Act 98-456) for such taxes paid | ||||||
11 | during the period beginning July 1, 2003 and ending on August | ||||||
12 | 16, 2013 (the effective date of Public Act 98-456). | ||||||
13 | (17) Until July 1, 2003, distillation machinery and | ||||||
14 | equipment, sold as a unit or kit, assembled or installed by the | ||||||
15 | retailer, certified by the user to be used only for the | ||||||
16 | production of ethyl alcohol that will be used for consumption | ||||||
17 | as motor fuel or as a component of motor fuel for the personal | ||||||
18 | use of the user, and not subject to sale or resale. | ||||||
19 | (18) Manufacturing and assembling machinery and equipment | ||||||
20 | used primarily in the process of manufacturing or assembling | ||||||
21 | tangible personal property for wholesale or retail sale or | ||||||
22 | lease, whether that sale or lease is made directly by the | ||||||
23 | manufacturer or by some other person, whether the materials | ||||||
24 | used in the process are owned by the manufacturer or some other | ||||||
25 | person, or whether that sale or lease is made apart from or as | ||||||
26 | an incident to the seller's engaging in the service occupation |
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1 | of producing machines, tools, dies, jigs, patterns, gauges, or | ||||||
2 | other similar items of no commercial value on special order | ||||||
3 | for a particular purchaser. The exemption provided by this | ||||||
4 | paragraph (18) includes production related tangible personal | ||||||
5 | property, as defined in Section 3-50, purchased on or after | ||||||
6 | July 1, 2019. The exemption provided by this paragraph (18) | ||||||
7 | does not include machinery and equipment used in (i) the | ||||||
8 | generation of electricity for wholesale or retail sale; (ii) | ||||||
9 | the generation or treatment of natural or artificial gas for | ||||||
10 | wholesale or retail sale that is delivered to customers | ||||||
11 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
12 | water for wholesale or retail sale that is delivered to | ||||||
13 | customers through pipes, pipelines, or mains. The provisions | ||||||
14 | of Public Act 98-583 are declaratory of existing law as to the | ||||||
15 | meaning and scope of this exemption. Beginning on July 1, | ||||||
16 | 2017, the exemption provided by this paragraph (18) includes, | ||||||
17 | but is not limited to, graphic arts machinery and equipment, | ||||||
18 | as defined in paragraph (6) of this Section. | ||||||
19 | (19) Personal property delivered to a purchaser or | ||||||
20 | purchaser's donee inside Illinois when the purchase order for | ||||||
21 | that personal property was received by a florist located | ||||||
22 | outside Illinois who has a florist located inside Illinois | ||||||
23 | deliver the personal property. | ||||||
24 | (20) Semen used for artificial insemination of livestock | ||||||
25 | for direct agricultural production. | ||||||
26 | (21) Horses, or interests in horses, registered with and |
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1 | meeting the requirements of any of the Arabian Horse Club | ||||||
2 | Registry of America, Appaloosa Horse Club, American Quarter | ||||||
3 | Horse Association, United States Trotting Association, or | ||||||
4 | Jockey Club, as appropriate, used for purposes of breeding or | ||||||
5 | racing for prizes. This item (21) is exempt from the | ||||||
6 | provisions of Section 3-90, and the exemption provided for | ||||||
7 | under this item (21) applies for all periods beginning May 30, | ||||||
8 | 1995, but no claim for credit or refund is allowed on or after | ||||||
9 | January 1, 2008 for such taxes paid during the period | ||||||
10 | beginning May 30, 2000 and ending on January 1, 2008. | ||||||
11 | (22) Computers and communications equipment utilized for | ||||||
12 | any hospital purpose and equipment used in the diagnosis, | ||||||
13 | analysis, or treatment of hospital patients purchased by a | ||||||
14 | lessor who leases the equipment, under a lease of one year or | ||||||
15 | longer executed or in effect at the time the lessor would | ||||||
16 | otherwise be subject to the tax imposed by this Act, to a | ||||||
17 | hospital that has been issued an active tax exemption | ||||||
18 | identification number by the Department under Section 1g of | ||||||
19 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
20 | in a manner that does not qualify for this exemption or is used | ||||||
21 | in any other non-exempt manner, the lessor shall be liable for | ||||||
22 | the tax imposed under this Act or the Service Use Tax Act, as | ||||||
23 | the case may be, based on the fair market value of the property | ||||||
24 | at the time the non-qualifying use occurs. No lessor shall | ||||||
25 | collect or attempt to collect an amount (however designated) | ||||||
26 | that purports to reimburse that lessor for the tax imposed by |
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1 | this Act or the Service Use Tax Act, as the case may be, if the | ||||||
2 | tax has not been paid by the lessor. If a lessor improperly | ||||||
3 | collects any such amount from the lessee, the lessee shall | ||||||
4 | have a legal right to claim a refund of that amount from the | ||||||
5 | lessor. If, however, that amount is not refunded to the lessee | ||||||
6 | for any reason, the lessor is liable to pay that amount to the | ||||||
7 | Department. | ||||||
8 | (23) Personal property purchased by a lessor who leases | ||||||
9 | the property, under a lease of one year or longer executed or | ||||||
10 | in effect at the time the lessor would otherwise be subject to | ||||||
11 | the tax imposed by this Act, to a governmental body that has | ||||||
12 | been issued an active sales tax exemption identification | ||||||
13 | number by the Department under Section 1g of the Retailers' | ||||||
14 | Occupation Tax Act. If the property is leased in a manner that | ||||||
15 | does not qualify for this exemption or used in any other | ||||||
16 | non-exempt manner, the lessor shall be liable for the tax | ||||||
17 | imposed under this Act or the Service Use Tax Act, as the case | ||||||
18 | may be, based on the fair market value of the property at the | ||||||
19 | time the non-qualifying use occurs. No lessor shall collect or | ||||||
20 | attempt to collect an amount (however designated) that | ||||||
21 | purports to reimburse that lessor for the tax imposed by this | ||||||
22 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
23 | 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. | ||||||
3 | (24) Beginning with taxable years ending on or after | ||||||
4 | December 31, 1995 and ending with taxable years ending on or | ||||||
5 | before December 31, 2004, personal property that is donated | ||||||
6 | for disaster relief to be used in a State or federally declared | ||||||
7 | disaster area in Illinois or bordering Illinois by a | ||||||
8 | manufacturer or retailer that is registered in this State to a | ||||||
9 | corporation, society, association, foundation, or institution | ||||||
10 | that has been issued a sales tax exemption identification | ||||||
11 | number by the Department that assists victims of the disaster | ||||||
12 | who reside within the declared disaster area. | ||||||
13 | (25) Beginning with taxable years ending on or after | ||||||
14 | December 31, 1995 and ending with taxable years ending on or | ||||||
15 | before December 31, 2004, personal property that is used in | ||||||
16 | the performance of infrastructure repairs in this State, | ||||||
17 | including , but not limited to , municipal roads and streets, | ||||||
18 | access roads, bridges, sidewalks, waste disposal systems, | ||||||
19 | water and sewer line extensions, water distribution and | ||||||
20 | purification facilities, storm water drainage and retention | ||||||
21 | facilities, and sewage treatment facilities, resulting from a | ||||||
22 | State or federally declared disaster in Illinois or bordering | ||||||
23 | Illinois when such repairs are initiated on facilities located | ||||||
24 | in the declared disaster area within 6 months after the | ||||||
25 | disaster. | ||||||
26 | (26) Beginning July 1, 1999, game or game birds purchased |
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1 | at a "game breeding and hunting preserve area" as that term is | ||||||
2 | used in the Wildlife Code. This paragraph is exempt from the | ||||||
3 | provisions of Section 3-90. | ||||||
4 | (27) A motor vehicle, as that term is defined in Section | ||||||
5 | 1-146 of the Illinois Vehicle Code, that is donated to a | ||||||
6 | corporation, limited liability company, society, association, | ||||||
7 | foundation, or institution that is determined by the | ||||||
8 | Department to be organized and operated exclusively for | ||||||
9 | educational purposes. For purposes of this exemption, "a | ||||||
10 | corporation, limited liability company, society, association, | ||||||
11 | foundation, or institution organized and operated exclusively | ||||||
12 | for educational purposes" means all tax-supported public | ||||||
13 | schools, private schools that offer systematic instruction in | ||||||
14 | useful branches of learning by methods common to public | ||||||
15 | schools and that compare favorably in their scope and | ||||||
16 | intensity with the course of study presented in tax-supported | ||||||
17 | schools, and vocational or technical schools or institutes | ||||||
18 | organized and operated exclusively to provide a course of | ||||||
19 | study of not less than 6 weeks duration and designed to prepare | ||||||
20 | individuals to follow a trade or to pursue a manual, | ||||||
21 | technical, mechanical, industrial, business, or commercial | ||||||
22 | occupation. | ||||||
23 | (28) Beginning January 1, 2000, personal property, | ||||||
24 | including food, purchased through fundraising events for the | ||||||
25 | benefit of a public or private elementary or secondary school, | ||||||
26 | a group of those schools, or one or more school districts if |
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1 | the events are sponsored by an entity recognized by the school | ||||||
2 | district that consists primarily of volunteers and includes | ||||||
3 | parents and teachers of the school children. This paragraph | ||||||
4 | does not apply to fundraising events (i) for the benefit of | ||||||
5 | private home instruction or (ii) for which the fundraising | ||||||
6 | entity purchases the personal property sold at the events from | ||||||
7 | another individual or entity that sold the property for the | ||||||
8 | purpose of resale by the fundraising entity and that profits | ||||||
9 | from the sale to the fundraising entity. This paragraph is | ||||||
10 | exempt from the provisions of Section 3-90. | ||||||
11 | (29) Beginning January 1, 2000 and through December 31, | ||||||
12 | 2001, new or used automatic vending machines that prepare and | ||||||
13 | serve hot food and beverages, including coffee, soup, and | ||||||
14 | other items, and replacement parts for these machines. | ||||||
15 | Beginning January 1, 2002 and through June 30, 2003, machines | ||||||
16 | and parts for machines used in commercial, coin-operated | ||||||
17 | amusement and vending business if a use or occupation tax is | ||||||
18 | paid on the gross receipts derived from the use of the | ||||||
19 | commercial, coin-operated amusement and vending machines. This | ||||||
20 | paragraph is exempt from the provisions of Section 3-90. | ||||||
21 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
22 | food for human consumption that is to be consumed off the | ||||||
23 | premises where it is sold (other than alcoholic beverages, | ||||||
24 | soft drinks, and food that has been prepared for immediate | ||||||
25 | consumption) and prescription and nonprescription medicines, | ||||||
26 | drugs, medical appliances, and insulin, urine testing |
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1 | materials, syringes, and needles used by diabetics, for human | ||||||
2 | use, when purchased for use by a person receiving medical | ||||||
3 | assistance under Article V of the Illinois Public Aid Code who | ||||||
4 | resides in a licensed long-term care facility, as defined in | ||||||
5 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
6 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
7 | Specialized Mental Health Rehabilitation Act of 2013. | ||||||
8 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
9 | Public Act 92-227), computers and communications equipment | ||||||
10 | utilized for any hospital purpose and equipment used in the | ||||||
11 | diagnosis, analysis, or treatment of hospital patients | ||||||
12 | purchased by a lessor who leases the equipment, under a lease | ||||||
13 | of one year or longer executed or in effect at the time the | ||||||
14 | lessor would otherwise be subject to the tax imposed by this | ||||||
15 | Act, to a hospital that has been issued an active tax exemption | ||||||
16 | identification number by the Department under Section 1g of | ||||||
17 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
18 | in a manner that does not qualify for this exemption or is used | ||||||
19 | in any other nonexempt manner, the lessor shall be liable for | ||||||
20 | the tax imposed under this Act or the Service Use Tax Act, as | ||||||
21 | the case may be, based on the fair market value of the property | ||||||
22 | at the time the nonqualifying use occurs. No lessor shall | ||||||
23 | collect or attempt to collect an amount (however designated) | ||||||
24 | that purports to reimburse that lessor for the tax imposed by | ||||||
25 | this Act or the Service Use Tax Act, as the case may be, if the | ||||||
26 | tax has not been paid by the lessor. If a lessor improperly |
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1 | collects any such amount from the lessee, the lessee shall | ||||||
2 | have a legal right to claim a refund of that amount from the | ||||||
3 | lessor. If, however, that amount is not refunded to the lessee | ||||||
4 | for any reason, the lessor is liable to pay that amount to the | ||||||
5 | Department. This paragraph is exempt from the provisions of | ||||||
6 | Section 3-90. | ||||||
7 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
8 | Public Act 92-227), personal property purchased by a lessor | ||||||
9 | who leases the property, under a lease of one year or longer | ||||||
10 | executed or in effect at the time the lessor would otherwise be | ||||||
11 | subject to the tax imposed by this Act, to a governmental body | ||||||
12 | that has been issued an active sales tax exemption | ||||||
13 | identification number by the Department under Section 1g of | ||||||
14 | the Retailers' Occupation Tax Act. If the property is leased | ||||||
15 | in a manner that does not qualify for this exemption or used in | ||||||
16 | any other nonexempt manner, the lessor shall be liable for the | ||||||
17 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
18 | case may be, based on the fair market value of the property at | ||||||
19 | the time the nonqualifying use occurs. No lessor shall collect | ||||||
20 | or attempt to collect an amount (however designated) that | ||||||
21 | purports to reimburse that lessor for the tax imposed by this | ||||||
22 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
23 | 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. This paragraph is exempt from the provisions of | ||||||
3 | Section 3-90. | ||||||
4 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
5 | the use in this State of motor vehicles of the second division | ||||||
6 | with a gross vehicle weight in excess of 8,000 pounds and that | ||||||
7 | are subject to the commercial distribution fee imposed under | ||||||
8 | Section 3-815.1 of the Illinois Vehicle Code. Beginning on | ||||||
9 | July 1, 2004 and through June 30, 2005, the use in this State | ||||||
10 | of motor vehicles of the second division: (i) with a gross | ||||||
11 | vehicle weight rating in excess of 8,000 pounds; (ii) that are | ||||||
12 | subject to the commercial distribution fee imposed under | ||||||
13 | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that | ||||||
14 | are primarily used for commercial purposes. Through June 30, | ||||||
15 | 2005, this exemption applies to repair and replacement parts | ||||||
16 | added after the initial purchase of such a motor vehicle if | ||||||
17 | that motor vehicle is used in a manner that would qualify for | ||||||
18 | the rolling stock exemption otherwise provided for in this | ||||||
19 | Act. For purposes of this paragraph, the term "used for | ||||||
20 | commercial purposes" means the transportation of persons or | ||||||
21 | property in furtherance of any commercial or industrial | ||||||
22 | enterprise, whether for-hire or not. | ||||||
23 | (34) Beginning January 1, 2008, tangible personal property | ||||||
24 | used in the construction or maintenance of a community water | ||||||
25 | supply, as defined under Section 3.145 of the Environmental | ||||||
26 | Protection Act, that is operated by a not-for-profit |
| |||||||
| |||||||
1 | corporation that holds a valid water supply permit issued | ||||||
2 | under Title IV of the Environmental Protection Act. This | ||||||
3 | paragraph is exempt from the provisions of Section 3-90. | ||||||
4 | (35) Beginning January 1, 2010 and continuing through | ||||||
5 | December 31, 2029, materials, parts, equipment, components, | ||||||
6 | and furnishings incorporated into or upon an aircraft as part | ||||||
7 | of the modification, refurbishment, completion, replacement, | ||||||
8 | repair, or maintenance of the aircraft. This exemption | ||||||
9 | includes consumable supplies used in the modification, | ||||||
10 | refurbishment, completion, replacement, repair, and | ||||||
11 | maintenance of aircraft. However, until January 1, 2024, this | ||||||
12 | exemption excludes any materials, parts, equipment, | ||||||
13 | components, and consumable supplies used in the modification, | ||||||
14 | replacement, repair, and maintenance of aircraft engines or | ||||||
15 | power plants, whether such engines or power plants are | ||||||
16 | installed or uninstalled upon any such aircraft. "Consumable | ||||||
17 | supplies" include, but are not limited to, adhesive, tape, | ||||||
18 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
19 | latex gloves, and protective films. | ||||||
20 | Beginning January 1, 2010 and continuing through December | ||||||
21 | 31, 2023, this exemption applies only to the use of qualifying | ||||||
22 | tangible personal property by persons who modify, refurbish, | ||||||
23 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
24 | hold an Air 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) conduct |
| |||||||
| |||||||
1 | operations in accordance with Part 145 of the Federal Aviation | ||||||
2 | Regulations. From January 1, 2024 through December 31, 2029, | ||||||
3 | this exemption applies only to the use of qualifying tangible | ||||||
4 | personal property by: (A) persons who modify, refurbish, | ||||||
5 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
6 | hold an Air Agency Certificate and are empowered to operate an | ||||||
7 | approved repair station by the Federal Aviation | ||||||
8 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
9 | operations in accordance with Part 145 of the Federal Aviation | ||||||
10 | Regulations; and (B) persons who engage in the modification, | ||||||
11 | replacement, repair, and maintenance of aircraft engines or | ||||||
12 | power plants without regard to whether or not those persons | ||||||
13 | meet the qualifications of item (A). | ||||||
14 | The exemption does not include aircraft operated by a | ||||||
15 | commercial air carrier providing scheduled passenger air | ||||||
16 | service pursuant to authority issued under Part 121 or Part | ||||||
17 | 129 of the Federal Aviation Regulations. The changes made to | ||||||
18 | this paragraph (35) by Public Act 98-534 are declarative of | ||||||
19 | existing law. It is the intent of the General Assembly that the | ||||||
20 | exemption under this paragraph (35) applies continuously from | ||||||
21 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
22 | for credit or refund is allowed for taxes paid as a result of | ||||||
23 | the disallowance of this exemption on or after January 1, 2015 | ||||||
24 | and prior to February 5, 2020 (the effective date of Public Act | ||||||
25 | 101-629). | ||||||
26 | (36) Tangible personal property purchased by a |
| |||||||
| |||||||
1 | public-facilities corporation, as described in Section | ||||||
2 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
3 | constructing or furnishing a municipal convention hall, but | ||||||
4 | only if the legal title to the municipal convention hall is | ||||||
5 | transferred to the municipality without any further | ||||||
6 | consideration by or on behalf of the municipality at the time | ||||||
7 | of the completion of the municipal convention hall or upon the | ||||||
8 | retirement or redemption of any bonds or other debt | ||||||
9 | instruments issued by the public-facilities corporation in | ||||||
10 | connection with the development of the municipal convention | ||||||
11 | hall. This exemption includes existing public-facilities | ||||||
12 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
13 | Municipal Code. This paragraph is exempt from the provisions | ||||||
14 | of Section 3-90. | ||||||
15 | (37) Beginning January 1, 2017 and through December 31, | ||||||
16 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
17 | (38) Merchandise that is subject to the Rental Purchase | ||||||
18 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
19 | that the item is purchased to be rented subject to a | ||||||
20 | rental-purchase rental purchase agreement, as defined in the | ||||||
21 | Rental-Purchase Rental Purchase Agreement Act, and provide | ||||||
22 | proof of registration under the Rental Purchase Agreement | ||||||
23 | Occupation and Use Tax Act. This paragraph is exempt from the | ||||||
24 | provisions of Section 3-90. | ||||||
25 | (39) Tangible personal property purchased by a purchaser | ||||||
26 | who is exempt from the tax imposed by this Act by operation of |
| |||||||
| |||||||
1 | federal law. This paragraph is exempt from the provisions of | ||||||
2 | Section 3-90. | ||||||
3 | (40) Qualified tangible personal property used in the | ||||||
4 | construction or operation of a data center that has been | ||||||
5 | granted a certificate of exemption by the Department of | ||||||
6 | Commerce and Economic Opportunity, whether that tangible | ||||||
7 | personal property is purchased by the owner, operator, or | ||||||
8 | tenant of the data center or by a contractor or subcontractor | ||||||
9 | of the owner, operator, or tenant. Data centers that would | ||||||
10 | have qualified for a certificate of exemption prior to January | ||||||
11 | 1, 2020 had Public Act 101-31 been in effect may apply for and | ||||||
12 | obtain an exemption for subsequent purchases of computer | ||||||
13 | equipment or enabling software purchased or leased to upgrade, | ||||||
14 | supplement, or replace computer equipment or enabling software | ||||||
15 | purchased or leased in the original investment that would have | ||||||
16 | qualified. | ||||||
17 | The Department of Commerce and Economic Opportunity shall | ||||||
18 | grant a certificate of exemption under this item (40) to | ||||||
19 | qualified data centers as defined by Section 605-1025 of the | ||||||
20 | Department of Commerce and Economic Opportunity Law of the | ||||||
21 | Civil Administrative Code of Illinois. | ||||||
22 | For the purposes of this item (40): | ||||||
23 | "Data center" means a building or a series of | ||||||
24 | buildings rehabilitated or constructed to house working | ||||||
25 | servers in one physical location or multiple sites within | ||||||
26 | the State of Illinois. |
| |||||||
| |||||||
1 | "Qualified tangible personal property" means: | ||||||
2 | electrical systems and equipment; climate control and | ||||||
3 | chilling equipment and systems; mechanical systems and | ||||||
4 | equipment; monitoring and secure systems; emergency | ||||||
5 | generators; hardware; computers; servers; data storage | ||||||
6 | devices; network connectivity equipment; racks; cabinets; | ||||||
7 | telecommunications cabling infrastructure; raised floor | ||||||
8 | systems; peripheral components or systems; software; | ||||||
9 | mechanical, electrical, or plumbing systems; battery | ||||||
10 | systems; cooling systems and towers; temperature control | ||||||
11 | systems; other cabling; and other data center | ||||||
12 | infrastructure equipment and systems necessary to operate | ||||||
13 | qualified tangible personal property, including fixtures; | ||||||
14 | and component parts of any of the foregoing, including | ||||||
15 | installation, maintenance, repair, refurbishment, and | ||||||
16 | replacement of qualified tangible personal property to | ||||||
17 | generate, transform, transmit, distribute, or manage | ||||||
18 | electricity necessary to operate qualified tangible | ||||||
19 | personal property; and all other tangible personal | ||||||
20 | property that is essential to the operations of a computer | ||||||
21 | data center. The term "qualified tangible personal | ||||||
22 | property" also includes building materials physically | ||||||
23 | incorporated into in to the qualifying data center. To | ||||||
24 | document the exemption allowed under this Section, the | ||||||
25 | retailer must obtain from the purchaser a copy of the | ||||||
26 | certificate of eligibility issued by the Department of |
| |||||||
| |||||||
1 | Commerce and Economic Opportunity. | ||||||
2 | This item (40) is exempt from the provisions of Section | ||||||
3 | 3-90. | ||||||
4 | (41) Beginning July 1, 2022, breast pumps, breast pump | ||||||
5 | collection and storage supplies, and breast pump kits. This | ||||||
6 | item (41) is exempt from the provisions of Section 3-90. As | ||||||
7 | used in this item (41): | ||||||
8 | "Breast pump" means an electrically controlled or | ||||||
9 | manually controlled pump device designed or marketed to be | ||||||
10 | used to express milk from a human breast during lactation, | ||||||
11 | including the pump device and any battery, AC adapter, or | ||||||
12 | other power supply unit that is used to power the pump | ||||||
13 | device and is packaged and sold with the pump device at the | ||||||
14 | time of sale. | ||||||
15 | "Breast pump collection and storage supplies" means | ||||||
16 | items of tangible personal property designed or marketed | ||||||
17 | to be used in conjunction with a breast pump to collect | ||||||
18 | milk expressed from a human breast and to store collected | ||||||
19 | milk until it is ready for consumption. | ||||||
20 | "Breast pump collection and storage supplies" | ||||||
21 | includes, but is not limited to: breast shields and breast | ||||||
22 | shield connectors; breast pump tubes and tubing adapters; | ||||||
23 | breast pump valves and membranes; backflow protectors and | ||||||
24 | backflow protector adaptors; bottles and bottle caps | ||||||
25 | specific to the operation of the breast pump; and breast | ||||||
26 | milk storage bags. |
| |||||||
| |||||||
1 | "Breast pump collection and storage supplies" does not | ||||||
2 | include: (1) bottles and bottle caps not specific to the | ||||||
3 | operation of the breast pump; (2) breast pump travel bags | ||||||
4 | and other similar carrying accessories, including ice | ||||||
5 | packs, labels, and other similar products; (3) breast pump | ||||||
6 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
7 | shells, and other similar products; and (5) creams, | ||||||
8 | ointments, and other similar products that relieve | ||||||
9 | breastfeeding-related symptoms or conditions of the | ||||||
10 | breasts or nipples, unless sold as part of a breast pump | ||||||
11 | kit that is pre-packaged by the breast pump manufacturer | ||||||
12 | or distributor. | ||||||
13 | "Breast pump kit" means a kit that: (1) contains no | ||||||
14 | more than a breast pump, breast pump collection and | ||||||
15 | storage supplies, a rechargeable battery for operating the | ||||||
16 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
17 | packs, and a breast pump carrying case; and (2) is | ||||||
18 | pre-packaged as a breast pump kit by the breast pump | ||||||
19 | manufacturer or distributor. | ||||||
20 | (42) Tangible personal property sold by or on behalf of | ||||||
21 | the State Treasurer pursuant to the Revised Uniform Unclaimed | ||||||
22 | Property Act. This item (42) is exempt from the provisions of | ||||||
23 | Section 3-90. | ||||||
24 | (43) Beginning on January 1, 2024, tangible personal | ||||||
25 | property purchased by an active duty member of the armed | ||||||
26 | forces of the United States who presents valid military |
| |||||||
| |||||||
1 | identification and purchases the property using a form of | ||||||
2 | payment where the federal government is the payor. The member | ||||||
3 | of the armed forces must complete, at the point of sale, a form | ||||||
4 | prescribed by the Department of Revenue documenting that the | ||||||
5 | transaction is eligible for the exemption under this | ||||||
6 | paragraph. Retailers must keep the form as documentation of | ||||||
7 | the exemption in their records for a period of not less than 6 | ||||||
8 | years. "Armed forces of the United States" means the United | ||||||
9 | States Army, Navy, Air Force, Marine Corps, or Coast Guard. | ||||||
10 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
11 | (44) Materials furnished to a common interest community | ||||||
12 | association pursuant to a contract entered into with the | ||||||
13 | highway commissioner of a road district under subsection (k) | ||||||
14 | of Section 1-30 of the Common Interest Community Association | ||||||
15 | Act. This paragraph is exempt from the provisions of Section | ||||||
16 | 3-90. | ||||||
17 | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | ||||||
18 | Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, | ||||||
19 | eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | ||||||
20 | Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5, | ||||||
21 | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | ||||||
22 | revised 12-12-23.) | ||||||
23 | Section 10. The Service Use Tax Act is amended by changing | ||||||
24 | Section 3-5 as follows: |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
1 | to, the collection, monitoring, and correlation of animal and | ||||||
2 | crop data for the purpose of formulating animal diets and | ||||||
3 | agricultural chemicals. | ||||||
4 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
5 | also includes electrical power generation equipment used | ||||||
6 | primarily for production agriculture. | ||||||
7 | This item (7) is exempt from the provisions of Section | ||||||
8 | 3-75. | ||||||
9 | (8) 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. | ||||||
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 | (9) Proceeds of mandatory service charges separately |
| |||||||
| |||||||
1 | stated on customers' bills for the purchase and consumption of | ||||||
2 | food and beverages acquired as an incident to the purchase of a | ||||||
3 | service from a serviceman, to the extent that the proceeds of | ||||||
4 | the service charge are in fact turned over as tips or as a | ||||||
5 | substitute for tips to the employees who participate directly | ||||||
6 | in preparing, serving, hosting or cleaning up the food or | ||||||
7 | beverage function with respect to which the service charge is | ||||||
8 | imposed. | ||||||
9 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
10 | and production equipment, including (i) rigs and parts of | ||||||
11 | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) | ||||||
12 | pipe and tubular goods, including casing and drill strings, | ||||||
13 | (iii) pumps and pump-jack units, (iv) storage tanks and flow | ||||||
14 | lines, (v) any individual replacement part for oil field | ||||||
15 | exploration, drilling, and production equipment, and (vi) | ||||||
16 | machinery and equipment purchased for lease; but excluding | ||||||
17 | motor vehicles required to be registered under the Illinois | ||||||
18 | Vehicle Code. | ||||||
19 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
20 | and equipment, including repair and replacement parts, both | ||||||
21 | new and used, including that manufactured on special order, | ||||||
22 | certified by the purchaser to be used primarily for | ||||||
23 | photoprocessing, and including photoprocessing machinery and | ||||||
24 | equipment purchased for lease. | ||||||
25 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
26 | mining, off-highway hauling, processing, maintenance, and |
| |||||||
| |||||||
1 | reclamation equipment, including replacement parts and | ||||||
2 | equipment, and including equipment purchased for lease, but | ||||||
3 | excluding motor vehicles required to be registered under the | ||||||
4 | Illinois Vehicle Code. The changes made to this Section by | ||||||
5 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
6 | for credit or refund is allowed on or after August 16, 2013 | ||||||
7 | (the effective date of Public Act 98-456) for such taxes paid | ||||||
8 | during the period beginning July 1, 2003 and ending on August | ||||||
9 | 16, 2013 (the effective date of Public Act 98-456). | ||||||
10 | (13) Semen used for artificial insemination of livestock | ||||||
11 | for direct agricultural production. | ||||||
12 | (14) Horses, or interests in horses, registered with and | ||||||
13 | meeting the requirements of any of the Arabian Horse Club | ||||||
14 | Registry of America, Appaloosa Horse Club, American Quarter | ||||||
15 | Horse Association, United States Trotting Association, or | ||||||
16 | Jockey Club, as appropriate, used for purposes of breeding or | ||||||
17 | racing for prizes. This item (14) is exempt from the | ||||||
18 | provisions of Section 3-75, and the exemption provided for | ||||||
19 | under this item (14) applies for all periods beginning May 30, | ||||||
20 | 1995, but no claim for credit or refund is allowed on or after | ||||||
21 | January 1, 2008 (the effective date of Public Act 95-88) for | ||||||
22 | such taxes paid during the period beginning May 30, 2000 and | ||||||
23 | ending on January 1, 2008 (the effective date of Public Act | ||||||
24 | 95-88). | ||||||
25 | (15) Computers and communications equipment utilized for | ||||||
26 | any hospital purpose and equipment used in the diagnosis, |
| |||||||
| |||||||
1 | analysis, or treatment of hospital patients purchased by a | ||||||
2 | lessor who leases the equipment, under a lease of one year or | ||||||
3 | longer executed or in effect at the time the lessor would | ||||||
4 | otherwise be subject to the tax imposed by this Act, to a | ||||||
5 | hospital that has been issued an active tax exemption | ||||||
6 | identification number by the Department under Section 1g of | ||||||
7 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
8 | in a manner that does not qualify for this exemption or is used | ||||||
9 | in any other non-exempt manner, the lessor shall be liable for | ||||||
10 | the tax imposed under this Act or the Use Tax Act, as the case | ||||||
11 | may be, based on the fair market value of the property at the | ||||||
12 | time the non-qualifying use occurs. No lessor shall collect or | ||||||
13 | attempt to collect an amount (however designated) that | ||||||
14 | purports to reimburse that lessor for the tax imposed by this | ||||||
15 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
16 | been paid by the lessor. If a lessor improperly collects any | ||||||
17 | such amount from the lessee, the lessee shall have a legal | ||||||
18 | right to claim a refund of that amount from the lessor. If, | ||||||
19 | however, that amount is not refunded to the lessee for any | ||||||
20 | reason, the lessor is liable to pay that amount to the | ||||||
21 | Department. | ||||||
22 | (16) Personal property purchased by a lessor who leases | ||||||
23 | the property, under a lease of one year or longer executed or | ||||||
24 | in effect at the time the lessor would otherwise be subject to | ||||||
25 | the tax imposed by this Act, to a governmental body that has | ||||||
26 | been issued an active tax exemption identification number by |
| |||||||
| |||||||
1 | the Department under Section 1g of the Retailers' Occupation | ||||||
2 | Tax Act. If the property is leased in a manner that does not | ||||||
3 | qualify for this exemption or is used in any other non-exempt | ||||||
4 | manner, the lessor shall be liable for the tax imposed under | ||||||
5 | this Act or the Use Tax Act, as the case may be, based on the | ||||||
6 | fair market value of the property at the time the | ||||||
7 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
8 | to collect an amount (however designated) that purports to | ||||||
9 | reimburse that lessor for the tax imposed by this Act or the | ||||||
10 | Use Tax Act, as the case may be, if the tax has not been paid | ||||||
11 | by the lessor. If a lessor improperly collects any such amount | ||||||
12 | from the lessee, the lessee shall have a legal right to claim a | ||||||
13 | refund of that amount from the lessor. If, however, that | ||||||
14 | amount is not refunded to the lessee for any reason, the lessor | ||||||
15 | is liable to pay that amount to the Department. | ||||||
16 | (17) Beginning with taxable years ending on or after | ||||||
17 | December 31, 1995 and ending with taxable years ending on or | ||||||
18 | before December 31, 2004, personal property that is donated | ||||||
19 | for disaster relief to be used in a State or federally declared | ||||||
20 | disaster area in Illinois or bordering Illinois by a | ||||||
21 | manufacturer or retailer that is registered in this State to a | ||||||
22 | corporation, society, association, foundation, or institution | ||||||
23 | that has been issued a sales tax exemption identification | ||||||
24 | number by the Department that assists victims of the disaster | ||||||
25 | who reside within the declared disaster area. | ||||||
26 | (18) Beginning with taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 1995 and ending with taxable years ending on or | ||||||
2 | before December 31, 2004, personal property that is used in | ||||||
3 | the performance of infrastructure repairs in this State, | ||||||
4 | including , but not limited to , municipal roads and streets, | ||||||
5 | access roads, bridges, sidewalks, waste disposal systems, | ||||||
6 | water and sewer line extensions, water distribution and | ||||||
7 | purification facilities, storm water drainage and retention | ||||||
8 | facilities, and sewage treatment facilities, resulting from a | ||||||
9 | State or federally declared disaster in Illinois or bordering | ||||||
10 | Illinois when such repairs are initiated on facilities located | ||||||
11 | in the declared disaster area within 6 months after the | ||||||
12 | disaster. | ||||||
13 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
14 | at a "game breeding and hunting preserve area" as that term is | ||||||
15 | used in the Wildlife Code. This paragraph is exempt from the | ||||||
16 | provisions of Section 3-75. | ||||||
17 | (20) A motor vehicle, as that term is defined in Section | ||||||
18 | 1-146 of the Illinois Vehicle Code, that is donated to a | ||||||
19 | corporation, limited liability company, society, association, | ||||||
20 | foundation, or institution that is determined by the | ||||||
21 | Department to be organized and operated exclusively for | ||||||
22 | educational purposes. For purposes of this exemption, "a | ||||||
23 | corporation, limited liability company, society, association, | ||||||
24 | foundation, or institution organized and operated exclusively | ||||||
25 | for educational purposes" means all tax-supported public | ||||||
26 | schools, private schools that offer systematic instruction in |
| |||||||
| |||||||
1 | useful branches of learning by methods common to public | ||||||
2 | schools and that compare favorably in their scope and | ||||||
3 | intensity with the course of study presented in tax-supported | ||||||
4 | schools, and vocational or technical schools or institutes | ||||||
5 | organized and operated exclusively to provide a course of | ||||||
6 | study of not less than 6 weeks duration and designed to prepare | ||||||
7 | individuals to follow a trade or to pursue a manual, | ||||||
8 | technical, mechanical, industrial, business, or commercial | ||||||
9 | occupation. | ||||||
10 | (21) Beginning January 1, 2000, personal property, | ||||||
11 | including food, purchased through fundraising events for the | ||||||
12 | benefit of a public or private elementary or secondary school, | ||||||
13 | a group of those schools, or one or more school districts if | ||||||
14 | the events are sponsored by an entity recognized by the school | ||||||
15 | district that consists primarily of volunteers and includes | ||||||
16 | parents and teachers of the school children. This paragraph | ||||||
17 | does not apply to fundraising events (i) for the benefit of | ||||||
18 | private home instruction or (ii) for which the fundraising | ||||||
19 | entity purchases the personal property sold at the events from | ||||||
20 | another individual or entity that sold the property for the | ||||||
21 | purpose of resale by the fundraising entity and that profits | ||||||
22 | from the sale to the fundraising entity. This paragraph is | ||||||
23 | exempt from the provisions of Section 3-75. | ||||||
24 | (22) Beginning January 1, 2000 and through December 31, | ||||||
25 | 2001, new or used automatic vending machines that prepare and | ||||||
26 | serve hot food and beverages, including coffee, soup, and |
| |||||||
| |||||||
1 | other items, and replacement parts for these machines. | ||||||
2 | Beginning January 1, 2002 and through June 30, 2003, machines | ||||||
3 | and parts for machines used in commercial, coin-operated | ||||||
4 | amusement and vending business if a use or occupation tax is | ||||||
5 | paid on the gross receipts derived from the use of the | ||||||
6 | commercial, coin-operated amusement and vending machines. This | ||||||
7 | paragraph is exempt from the provisions of Section 3-75. | ||||||
8 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
9 | food for human consumption that is to be consumed off the | ||||||
10 | premises where it is sold (other than alcoholic beverages, | ||||||
11 | soft drinks, and food that has been prepared for immediate | ||||||
12 | consumption) and prescription and nonprescription medicines, | ||||||
13 | drugs, medical appliances, and insulin, urine testing | ||||||
14 | materials, syringes, and needles used by diabetics, for human | ||||||
15 | use, when purchased for use by a person receiving medical | ||||||
16 | assistance under Article V of the Illinois Public Aid Code who | ||||||
17 | resides in a licensed long-term care facility, as defined in | ||||||
18 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
19 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
20 | Specialized Mental Health Rehabilitation Act of 2013. | ||||||
21 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
22 | Public Act 92-227), computers and communications equipment | ||||||
23 | utilized for any hospital purpose and equipment used in the | ||||||
24 | diagnosis, analysis, or treatment of hospital patients | ||||||
25 | purchased by a lessor who leases the equipment, under a lease | ||||||
26 | of one year or longer executed or in effect at the time the |
| |||||||
| |||||||
1 | lessor would otherwise be subject to the tax imposed by this | ||||||
2 | Act, to a hospital that has been issued an active tax exemption | ||||||
3 | identification number by the Department under Section 1g of | ||||||
4 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
5 | in a manner that does not qualify for this exemption or is used | ||||||
6 | in any other nonexempt manner, the lessor shall be liable for | ||||||
7 | the tax imposed under this Act or the Use Tax Act, as the case | ||||||
8 | may be, based on the fair market value of the property at the | ||||||
9 | time the nonqualifying use occurs. No lessor shall collect or | ||||||
10 | attempt to collect an amount (however designated) that | ||||||
11 | purports to reimburse that lessor for the tax imposed by this | ||||||
12 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
13 | been paid by the lessor. If a lessor improperly collects any | ||||||
14 | such amount from the lessee, the lessee shall have a legal | ||||||
15 | right to claim a refund of that amount from the lessor. If, | ||||||
16 | however, that amount is not refunded to the lessee for any | ||||||
17 | reason, the lessor is liable to pay that amount to the | ||||||
18 | Department. This paragraph is exempt from the provisions of | ||||||
19 | Section 3-75. | ||||||
20 | (25) Beginning on August 2, 2001 (the effective date of | ||||||
21 | Public Act 92-227), personal property purchased by a lessor | ||||||
22 | who leases the property, under a lease of one year or longer | ||||||
23 | executed or in effect at the time the lessor would otherwise be | ||||||
24 | subject to the tax imposed by this Act, to a governmental body | ||||||
25 | that has been issued an active tax exemption identification | ||||||
26 | number by the Department under Section 1g of the Retailers' |
| |||||||
| |||||||
1 | Occupation Tax Act. If the property is leased in a manner that | ||||||
2 | does not qualify for this exemption or is used in any other | ||||||
3 | nonexempt manner, the lessor shall be liable for the tax | ||||||
4 | imposed under this Act or the Use Tax Act, as the case may be, | ||||||
5 | based on the fair market value of the property at the time the | ||||||
6 | nonqualifying use occurs. No lessor shall collect or attempt | ||||||
7 | to collect an amount (however designated) that purports to | ||||||
8 | reimburse that lessor for the tax imposed by this Act or the | ||||||
9 | Use Tax Act, as the case may be, if the tax has not been paid | ||||||
10 | by the lessor. If a lessor improperly collects any such amount | ||||||
11 | from the lessee, the lessee shall have a legal right to claim a | ||||||
12 | refund of that amount from the lessor. If, however, that | ||||||
13 | amount is not refunded to the lessee for any reason, the lessor | ||||||
14 | is liable to pay that amount to the Department. This paragraph | ||||||
15 | is exempt from the provisions of Section 3-75. | ||||||
16 | (26) Beginning January 1, 2008, tangible personal property | ||||||
17 | used in the construction or maintenance of a community water | ||||||
18 | supply, as defined under Section 3.145 of the Environmental | ||||||
19 | Protection Act, that is operated by a not-for-profit | ||||||
20 | corporation that holds a valid water supply permit issued | ||||||
21 | under Title IV of the Environmental Protection Act. This | ||||||
22 | paragraph is exempt from the provisions of Section 3-75. | ||||||
23 | (27) Beginning January 1, 2010 and continuing through | ||||||
24 | December 31, 2029, materials, parts, equipment, components, | ||||||
25 | and furnishings incorporated into or upon an aircraft as part | ||||||
26 | of the modification, refurbishment, completion, replacement, |
| |||||||
| |||||||
1 | repair, or maintenance of the aircraft. This exemption | ||||||
2 | includes consumable supplies used in the modification, | ||||||
3 | refurbishment, completion, replacement, repair, and | ||||||
4 | maintenance of aircraft. However, until January 1, 2024, this | ||||||
5 | exemption excludes any materials, parts, equipment, | ||||||
6 | components, and consumable supplies used in the modification, | ||||||
7 | replacement, repair, and maintenance of aircraft engines or | ||||||
8 | power plants, whether such engines or power plants are | ||||||
9 | installed or uninstalled upon any such aircraft. "Consumable | ||||||
10 | supplies" include, but are not limited to, adhesive, tape, | ||||||
11 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
12 | latex gloves, and protective films. | ||||||
13 | Beginning January 1, 2010 and continuing through December | ||||||
14 | 31, 2023, this exemption applies only to the use of qualifying | ||||||
15 | tangible personal property transferred incident to the | ||||||
16 | modification, refurbishment, completion, replacement, repair, | ||||||
17 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
18 | Agency Certificate and are empowered to operate an approved | ||||||
19 | repair station by the Federal Aviation Administration, (ii) | ||||||
20 | have a Class IV Rating, and (iii) conduct operations in | ||||||
21 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
22 | From January 1, 2024 through December 31, 2029, this exemption | ||||||
23 | applies only to the use of qualifying tangible personal | ||||||
24 | property by: (A) persons who modify, refurbish, complete, | ||||||
25 | repair, replace, or maintain aircraft and who (i) hold an Air | ||||||
26 | Agency Certificate and are empowered to operate an approved |
| |||||||
| |||||||
1 | repair station by the Federal Aviation Administration, (ii) | ||||||
2 | have a Class IV Rating, and (iii) conduct operations in | ||||||
3 | accordance with Part 145 of the Federal Aviation Regulations; | ||||||
4 | and (B) persons who engage in the modification, replacement, | ||||||
5 | repair, and maintenance of aircraft engines or power plants | ||||||
6 | without regard to whether or not those persons meet the | ||||||
7 | qualifications of item (A). | ||||||
8 | The exemption does not include aircraft operated by a | ||||||
9 | commercial air carrier providing scheduled passenger air | ||||||
10 | service pursuant to authority issued under Part 121 or Part | ||||||
11 | 129 of the Federal Aviation Regulations. The changes made to | ||||||
12 | this paragraph (27) by Public Act 98-534 are declarative of | ||||||
13 | existing law. It is the intent of the General Assembly that the | ||||||
14 | exemption under this paragraph (27) applies continuously from | ||||||
15 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
16 | for credit or refund is allowed for taxes paid as a result of | ||||||
17 | the disallowance of this exemption on or after January 1, 2015 | ||||||
18 | and prior to February 5, 2020 (the effective date of Public Act | ||||||
19 | 101-629). | ||||||
20 | (28) Tangible personal property purchased by a | ||||||
21 | public-facilities corporation, as described in Section | ||||||
22 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
23 | constructing or furnishing a municipal convention hall, but | ||||||
24 | only if the legal title to the municipal convention hall is | ||||||
25 | transferred to the municipality without any further | ||||||
26 | consideration by or on behalf of the municipality at the time |
| |||||||
| |||||||
1 | of the completion of the municipal convention hall or upon the | ||||||
2 | retirement or redemption of any bonds or other debt | ||||||
3 | instruments issued by the public-facilities corporation in | ||||||
4 | connection with the development of the municipal convention | ||||||
5 | hall. This exemption includes existing public-facilities | ||||||
6 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
7 | Municipal Code. This paragraph is exempt from the provisions | ||||||
8 | of Section 3-75. | ||||||
9 | (29) Beginning January 1, 2017 and through December 31, | ||||||
10 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
11 | (30) Tangible personal property transferred to a purchaser | ||||||
12 | who is exempt from the tax imposed by this Act by operation of | ||||||
13 | federal law. This paragraph is exempt from the provisions of | ||||||
14 | Section 3-75. | ||||||
15 | (31) Qualified tangible personal property used in the | ||||||
16 | construction or operation of a data center that has been | ||||||
17 | granted a certificate of exemption by the Department of | ||||||
18 | Commerce and Economic Opportunity, whether that tangible | ||||||
19 | personal property is purchased by the owner, operator, or | ||||||
20 | tenant of the data center or by a contractor or subcontractor | ||||||
21 | of the owner, operator, or tenant. Data centers that would | ||||||
22 | have qualified for a certificate of exemption prior to January | ||||||
23 | 1, 2020 had Public Act 101-31 been in effect, may apply for and | ||||||
24 | obtain an exemption for subsequent purchases of computer | ||||||
25 | equipment or enabling software purchased or leased to upgrade, | ||||||
26 | supplement, or replace computer equipment or enabling software |
| |||||||
| |||||||
1 | purchased or leased in the original investment that would have | ||||||
2 | qualified. | ||||||
3 | The Department of Commerce and Economic Opportunity shall | ||||||
4 | grant a certificate of exemption under this item (31) to | ||||||
5 | qualified data centers as defined by Section 605-1025 of the | ||||||
6 | Department of Commerce and Economic Opportunity Law of the | ||||||
7 | Civil Administrative Code of Illinois. | ||||||
8 | For the purposes of this item (31): | ||||||
9 | "Data center" means a building or a series of | ||||||
10 | buildings rehabilitated or constructed to house working | ||||||
11 | servers in one physical location or multiple sites within | ||||||
12 | the State of Illinois. | ||||||
13 | "Qualified tangible personal property" means: | ||||||
14 | electrical systems and equipment; climate control and | ||||||
15 | chilling equipment and systems; mechanical systems and | ||||||
16 | equipment; monitoring and secure systems; emergency | ||||||
17 | generators; hardware; computers; servers; data storage | ||||||
18 | devices; network connectivity equipment; racks; cabinets; | ||||||
19 | telecommunications cabling infrastructure; raised floor | ||||||
20 | systems; peripheral components or systems; software; | ||||||
21 | mechanical, electrical, or plumbing systems; battery | ||||||
22 | systems; cooling systems and towers; temperature control | ||||||
23 | systems; other cabling; and other data center | ||||||
24 | infrastructure equipment and systems necessary to operate | ||||||
25 | qualified tangible personal property, including fixtures; | ||||||
26 | and component parts of any of the foregoing, including |
| |||||||
| |||||||
1 | installation, maintenance, repair, refurbishment, and | ||||||
2 | replacement of qualified tangible personal property to | ||||||
3 | generate, transform, transmit, distribute, or manage | ||||||
4 | electricity necessary to operate qualified tangible | ||||||
5 | personal property; and all other tangible personal | ||||||
6 | property that is essential to the operations of a computer | ||||||
7 | data center. The term "qualified tangible personal | ||||||
8 | property" also includes building materials physically | ||||||
9 | incorporated into in to the qualifying data center. To | ||||||
10 | document the exemption allowed under this Section, the | ||||||
11 | retailer must obtain from the purchaser a copy of the | ||||||
12 | certificate of eligibility issued by the Department of | ||||||
13 | Commerce and Economic Opportunity. | ||||||
14 | This item (31) is exempt from the provisions of Section | ||||||
15 | 3-75. | ||||||
16 | (32) Beginning July 1, 2022, breast pumps, breast pump | ||||||
17 | collection and storage supplies, and breast pump kits. This | ||||||
18 | item (32) is exempt from the provisions of Section 3-75. As | ||||||
19 | used in this item (32): | ||||||
20 | "Breast pump" means an electrically controlled or | ||||||
21 | manually controlled pump device designed or marketed to be | ||||||
22 | used to express milk from a human breast during lactation, | ||||||
23 | including the pump device and any battery, AC adapter, or | ||||||
24 | other power supply unit that is used to power the pump | ||||||
25 | device and is packaged and sold with the pump device at the | ||||||
26 | time of sale. |
| |||||||
| |||||||
1 | "Breast pump collection and storage supplies" means | ||||||
2 | items of tangible personal property designed or marketed | ||||||
3 | to be used in conjunction with a breast pump to collect | ||||||
4 | milk expressed from a human breast and to store collected | ||||||
5 | milk until it is ready for consumption. | ||||||
6 | "Breast pump collection and storage supplies" | ||||||
7 | includes, but is not limited to: breast shields and breast | ||||||
8 | shield connectors; breast pump tubes and tubing adapters; | ||||||
9 | breast pump valves and membranes; backflow protectors and | ||||||
10 | backflow protector adaptors; bottles and bottle caps | ||||||
11 | specific to the operation of the breast pump; and breast | ||||||
12 | milk storage bags. | ||||||
13 | "Breast pump collection and storage supplies" does not | ||||||
14 | include: (1) bottles and bottle caps not specific to the | ||||||
15 | operation of the breast pump; (2) breast pump travel bags | ||||||
16 | and other similar carrying accessories, including ice | ||||||
17 | packs, labels, and other similar products; (3) breast pump | ||||||
18 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
19 | shells, and other similar products; and (5) creams, | ||||||
20 | ointments, and other similar products that relieve | ||||||
21 | breastfeeding-related symptoms or conditions of the | ||||||
22 | breasts or nipples, unless sold as part of a breast pump | ||||||
23 | kit that is pre-packaged by the breast pump manufacturer | ||||||
24 | or distributor. | ||||||
25 | "Breast pump kit" means a kit that: (1) contains no | ||||||
26 | more than a breast pump, breast pump collection and |
| |||||||
| |||||||
1 | storage supplies, a rechargeable battery for operating the | ||||||
2 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
3 | packs, and a breast pump carrying case; and (2) is | ||||||
4 | pre-packaged as a breast pump kit by the breast pump | ||||||
5 | manufacturer or distributor. | ||||||
6 | (33) Tangible personal property sold by or on behalf of | ||||||
7 | the State Treasurer pursuant to the Revised Uniform Unclaimed | ||||||
8 | Property Act. This item (33) is exempt from the provisions of | ||||||
9 | Section 3-75. | ||||||
10 | (34) Beginning on January 1, 2024, tangible personal | ||||||
11 | property purchased by an active duty member of the armed | ||||||
12 | forces of the United States who presents valid military | ||||||
13 | identification and purchases the property using a form of | ||||||
14 | payment where the federal government is the payor. The member | ||||||
15 | of the armed forces must complete, at the point of sale, a form | ||||||
16 | prescribed by the Department of Revenue documenting that the | ||||||
17 | transaction is eligible for the exemption under this | ||||||
18 | paragraph. Retailers must keep the form as documentation of | ||||||
19 | the exemption in their records for a period of not less than 6 | ||||||
20 | years. "Armed forces of the United States" means the United | ||||||
21 | States Army, Navy, Air Force, Marine Corps, or Coast Guard. | ||||||
22 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
23 | (35) Materials furnished to a common interest community | ||||||
24 | association pursuant to a contract entered into with the | ||||||
25 | highway commissioner of a road district under subsection (k) | ||||||
26 | of Section 1-30 of the Common Interest Community Association |
| |||||||
| |||||||
1 | Act. This paragraph is exempt from the provisions of Section | ||||||
2 | 3-75. | ||||||
3 | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | ||||||
4 | Section 70-10, eff. 4-19-22; 102-700, Article 75, Section | ||||||
5 | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | ||||||
6 | Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10, | ||||||
7 | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | ||||||
8 | revised 12-12-23.) | ||||||
9 | Section 15. The Service Occupation Tax Act is amended by | ||||||
10 | changing Section 3-5 as follows: | ||||||
11 | (35 ILCS 115/3-5) | ||||||
12 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
13 | property is exempt from the tax imposed by this Act: | ||||||
14 | (1) Personal property sold by a corporation, society, | ||||||
15 | association, foundation, institution, or organization, other | ||||||
16 | than a limited liability company, that is organized and | ||||||
17 | operated as a not-for-profit service enterprise for the | ||||||
18 | benefit of persons 65 years of age or older if the personal | ||||||
19 | property was not purchased by the enterprise for the purpose | ||||||
20 | of resale by the enterprise. | ||||||
21 | (2) Personal property purchased by a not-for-profit | ||||||
22 | Illinois county fair association for use in conducting, | ||||||
23 | operating, or promoting the county fair. | ||||||
24 | (3) Personal property purchased by any not-for-profit arts |
| |||||||
| |||||||
1 | or cultural organization that establishes, by proof required | ||||||
2 | by the Department by rule, that it has received an exemption | ||||||
3 | under Section 501(c)(3) of the Internal Revenue Code and that | ||||||
4 | is organized and operated primarily for the presentation or | ||||||
5 | support of arts or cultural programming, activities, or | ||||||
6 | services. These organizations include, but are not limited to, | ||||||
7 | music and dramatic arts organizations such as symphony | ||||||
8 | orchestras and theatrical groups, arts and cultural service | ||||||
9 | organizations, local arts councils, visual arts organizations, | ||||||
10 | and media arts organizations. On and after July 1, 2001 (the | ||||||
11 | effective date of Public Act 92-35), however, an entity | ||||||
12 | otherwise eligible for this exemption shall not make tax-free | ||||||
13 | purchases unless it has an active identification number issued | ||||||
14 | by the Department. | ||||||
15 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
16 | coinage issued by the State of Illinois, the government of the | ||||||
17 | United States of America, or the government of any foreign | ||||||
18 | country, and bullion. | ||||||
19 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
20 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
21 | equipment, including repair and replacement parts, both new | ||||||
22 | and used, and including that manufactured on special order or | ||||||
23 | purchased for lease, certified by the purchaser to be used | ||||||
24 | primarily for graphic arts production. Equipment includes | ||||||
25 | chemicals or chemicals acting as catalysts but only if the | ||||||
26 | chemicals or chemicals acting as catalysts effect a direct and |
| |||||||
| |||||||
1 | immediate change upon a graphic arts product. Beginning on | ||||||
2 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
3 | in the manufacturing and assembling machinery and equipment | ||||||
4 | exemption under Section 2 of this Act. | ||||||
5 | (6) Personal property sold by a teacher-sponsored student | ||||||
6 | organization affiliated with an elementary or secondary school | ||||||
7 | located in Illinois. | ||||||
8 | (7) Farm machinery and equipment, both new and used, | ||||||
9 | including that manufactured on special order, certified by the | ||||||
10 | purchaser to be used primarily for production agriculture or | ||||||
11 | State or federal agricultural programs, including individual | ||||||
12 | replacement parts for the machinery and equipment, including | ||||||
13 | machinery and equipment purchased for lease, and including | ||||||
14 | implements of husbandry defined in Section 1-130 of the | ||||||
15 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
16 | chemical and fertilizer spreaders, and nurse wagons required | ||||||
17 | to be registered under Section 3-809 of the Illinois Vehicle | ||||||
18 | Code, but excluding other motor vehicles required to be | ||||||
19 | registered under the Illinois Vehicle Code. Horticultural | ||||||
20 | polyhouses or hoop houses used for propagating, growing, or | ||||||
21 | overwintering plants shall be considered farm machinery and | ||||||
22 | equipment under this item (7). Agricultural chemical tender | ||||||
23 | tanks and dry boxes shall include units sold separately from a | ||||||
24 | motor vehicle required to be licensed and units sold mounted | ||||||
25 | on a motor vehicle required to be licensed if the selling price | ||||||
26 | of the tender is separately stated. |
| |||||||
| |||||||
1 | Farm machinery and equipment shall include precision | ||||||
2 | farming equipment that is installed or purchased to be | ||||||
3 | installed on farm machinery and equipment , including, but not | ||||||
4 | limited to, tractors, harvesters, sprayers, planters, seeders, | ||||||
5 | or spreaders. Precision farming equipment includes, but is not | ||||||
6 | limited to, soil testing sensors, computers, monitors, | ||||||
7 | software, global positioning and mapping systems, and other | ||||||
8 | such equipment. | ||||||
9 | Farm machinery and equipment also includes computers, | ||||||
10 | sensors, software, and related equipment used primarily in the | ||||||
11 | computer-assisted operation of production agriculture | ||||||
12 | facilities, equipment, and activities such as, but not limited | ||||||
13 | to, the collection, monitoring, and correlation of animal and | ||||||
14 | crop data for the purpose of formulating animal diets and | ||||||
15 | agricultural chemicals. | ||||||
16 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
17 | also includes electrical power generation equipment used | ||||||
18 | primarily for production agriculture. | ||||||
19 | This item (7) is exempt from the provisions of Section | ||||||
20 | 3-55. | ||||||
21 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
22 | to or used by an air common carrier, certified by the carrier | ||||||
23 | to be used for consumption, shipment, or storage in the | ||||||
24 | conduct of its business as an air common carrier, for a flight | ||||||
25 | destined for or returning from a location or locations outside | ||||||
26 | the United States without regard to previous or subsequent |
| |||||||
| |||||||
1 | domestic stopovers. | ||||||
2 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
3 | to or used by an air carrier, certified by the carrier to be | ||||||
4 | used for consumption, shipment, or storage in the conduct of | ||||||
5 | its business as an air common carrier, for a flight that (i) is | ||||||
6 | engaged in foreign trade or is engaged in trade between the | ||||||
7 | United States and any of its possessions and (ii) transports | ||||||
8 | at least one individual or package for hire from the city of | ||||||
9 | origination to the city of final destination on the same | ||||||
10 | aircraft, without regard to a change in the flight number of | ||||||
11 | that aircraft. | ||||||
12 | (9) Proceeds of mandatory service charges separately | ||||||
13 | stated on customers' bills for the purchase and consumption of | ||||||
14 | food and beverages, to the extent that the proceeds of the | ||||||
15 | service charge are in fact turned over as tips or as a | ||||||
16 | substitute for tips to the employees who participate directly | ||||||
17 | in preparing, serving, hosting or cleaning up the food or | ||||||
18 | beverage function with respect to which the service charge is | ||||||
19 | imposed. | ||||||
20 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
21 | and production equipment, including (i) rigs and parts of | ||||||
22 | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) | ||||||
23 | pipe and tubular goods, including casing and drill strings, | ||||||
24 | (iii) pumps and pump-jack units, (iv) storage tanks and flow | ||||||
25 | lines, (v) any individual replacement part for oil field | ||||||
26 | exploration, drilling, and production equipment, and (vi) |
| |||||||
| |||||||
1 | machinery and equipment purchased for lease; but excluding | ||||||
2 | motor vehicles required to be registered under the Illinois | ||||||
3 | Vehicle Code. | ||||||
4 | (11) Photoprocessing machinery and equipment, including | ||||||
5 | repair and replacement parts, both new and used, including | ||||||
6 | that manufactured on special order, certified by the purchaser | ||||||
7 | to be used primarily for photoprocessing, and including | ||||||
8 | photoprocessing machinery and equipment purchased for lease. | ||||||
9 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
10 | mining, off-highway hauling, processing, maintenance, and | ||||||
11 | reclamation equipment, including replacement parts and | ||||||
12 | equipment, and including equipment purchased for lease, but | ||||||
13 | excluding motor vehicles required to be registered under the | ||||||
14 | Illinois Vehicle Code. The changes made to this Section by | ||||||
15 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
16 | for credit or refund is allowed on or after August 16, 2013 | ||||||
17 | (the effective date of Public Act 98-456) for such taxes paid | ||||||
18 | during the period beginning July 1, 2003 and ending on August | ||||||
19 | 16, 2013 (the effective date of Public Act 98-456). | ||||||
20 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
21 | food for human consumption that is to be consumed off the | ||||||
22 | premises where it is sold (other than alcoholic beverages, | ||||||
23 | soft drinks and food that has been prepared for immediate | ||||||
24 | consumption) and prescription and non-prescription medicines, | ||||||
25 | drugs, medical appliances, and insulin, urine testing | ||||||
26 | materials, syringes, and needles used by diabetics, for human |
| |||||||
| |||||||
1 | use, when purchased for use by a person receiving medical | ||||||
2 | assistance under Article V of the Illinois Public Aid Code who | ||||||
3 | resides in a licensed long-term care facility, as defined in | ||||||
4 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
5 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
6 | Specialized Mental Health Rehabilitation Act of 2013. | ||||||
7 | (14) Semen used for artificial insemination of livestock | ||||||
8 | for direct agricultural production. | ||||||
9 | (15) Horses, or interests in horses, registered with and | ||||||
10 | meeting the requirements of any of the Arabian Horse Club | ||||||
11 | Registry of America, Appaloosa Horse Club, American Quarter | ||||||
12 | Horse Association, United States Trotting Association, or | ||||||
13 | Jockey Club, as appropriate, used for purposes of breeding or | ||||||
14 | racing for prizes. This item (15) is exempt from the | ||||||
15 | provisions of Section 3-55, and the exemption provided for | ||||||
16 | under this item (15) applies for all periods beginning May 30, | ||||||
17 | 1995, but no claim for credit or refund is allowed on or after | ||||||
18 | January 1, 2008 (the effective date of Public Act 95-88) for | ||||||
19 | such taxes paid during the period beginning May 30, 2000 and | ||||||
20 | ending on January 1, 2008 (the effective date of Public Act | ||||||
21 | 95-88). | ||||||
22 | (16) Computers and communications equipment utilized for | ||||||
23 | any hospital purpose and equipment used in the diagnosis, | ||||||
24 | analysis, or treatment of hospital patients sold to a lessor | ||||||
25 | who leases the equipment, under a lease of one year or longer | ||||||
26 | executed or in effect at the time of the purchase, to a |
| |||||||
| |||||||
1 | hospital that has been issued an active tax exemption | ||||||
2 | identification number by the Department under Section 1g of | ||||||
3 | the Retailers' Occupation Tax Act. | ||||||
4 | (17) Personal property sold to a lessor who leases the | ||||||
5 | property, under a lease of one year or longer executed or in | ||||||
6 | effect at the time of the purchase, to a governmental body that | ||||||
7 | has been issued an active tax exemption identification number | ||||||
8 | by the Department under Section 1g of the Retailers' | ||||||
9 | Occupation Tax Act. | ||||||
10 | (18) Beginning with taxable years ending on or after | ||||||
11 | December 31, 1995 and ending with taxable years ending on or | ||||||
12 | before December 31, 2004, personal property that is donated | ||||||
13 | for disaster relief to be used in a State or federally declared | ||||||
14 | disaster area in Illinois or bordering Illinois by a | ||||||
15 | manufacturer or retailer that is registered in this State to a | ||||||
16 | corporation, society, association, foundation, or institution | ||||||
17 | that has been issued a sales tax exemption identification | ||||||
18 | number by the Department that assists victims of the disaster | ||||||
19 | who reside within the declared disaster area. | ||||||
20 | (19) Beginning with taxable years ending on or after | ||||||
21 | December 31, 1995 and ending with taxable years ending on or | ||||||
22 | before December 31, 2004, personal property that is used in | ||||||
23 | the performance of infrastructure repairs in this State, | ||||||
24 | including , but not limited to , municipal roads and streets, | ||||||
25 | access roads, bridges, sidewalks, waste disposal systems, | ||||||
26 | water and sewer line extensions, water distribution and |
| |||||||
| |||||||
1 | purification facilities, storm water drainage and retention | ||||||
2 | facilities, and sewage treatment facilities, resulting from a | ||||||
3 | State or federally declared disaster in Illinois or bordering | ||||||
4 | Illinois when such repairs are initiated on facilities located | ||||||
5 | in the declared disaster area within 6 months after the | ||||||
6 | disaster. | ||||||
7 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
8 | "game breeding and hunting preserve area" as that term is used | ||||||
9 | in the Wildlife Code. This paragraph is exempt from the | ||||||
10 | provisions of Section 3-55. | ||||||
11 | (21) A motor vehicle, as that term is defined in Section | ||||||
12 | 1-146 of the Illinois Vehicle Code, that is donated to a | ||||||
13 | corporation, limited liability company, society, association, | ||||||
14 | foundation, or institution that is determined by the | ||||||
15 | Department to be organized and operated exclusively for | ||||||
16 | educational purposes. For purposes of this exemption, "a | ||||||
17 | corporation, limited liability company, society, association, | ||||||
18 | foundation, or institution organized and operated exclusively | ||||||
19 | for educational purposes" means all tax-supported public | ||||||
20 | schools, private schools that offer systematic instruction in | ||||||
21 | useful branches of learning by methods common to public | ||||||
22 | schools and that compare favorably in their scope and | ||||||
23 | intensity with the course of study presented in tax-supported | ||||||
24 | schools, and vocational or technical schools or institutes | ||||||
25 | organized and operated exclusively to provide a course of | ||||||
26 | study of not less than 6 weeks duration and designed to prepare |
| |||||||
| |||||||
1 | individuals to follow a trade or to pursue a manual, | ||||||
2 | technical, mechanical, industrial, business, or commercial | ||||||
3 | occupation. | ||||||
4 | (22) Beginning January 1, 2000, personal property, | ||||||
5 | including food, purchased through fundraising events for the | ||||||
6 | benefit of a public or private elementary or secondary school, | ||||||
7 | a group of those schools, or one or more school districts if | ||||||
8 | the events are sponsored by an entity recognized by the school | ||||||
9 | district that consists primarily of volunteers and includes | ||||||
10 | parents and teachers of the school children. This paragraph | ||||||
11 | does not apply to fundraising events (i) for the benefit of | ||||||
12 | private home instruction or (ii) for which the fundraising | ||||||
13 | entity purchases the personal property sold at the events from | ||||||
14 | another individual or entity that sold the property for the | ||||||
15 | purpose of resale by the fundraising entity and that profits | ||||||
16 | from the sale to the fundraising entity. This paragraph is | ||||||
17 | exempt from the provisions of Section 3-55. | ||||||
18 | (23) Beginning January 1, 2000 and through December 31, | ||||||
19 | 2001, new or used automatic vending machines that prepare and | ||||||
20 | serve hot food and beverages, including coffee, soup, and | ||||||
21 | other items, and replacement parts for these machines. | ||||||
22 | Beginning January 1, 2002 and through June 30, 2003, machines | ||||||
23 | and parts for machines used in commercial, coin-operated | ||||||
24 | amusement and vending business if a use or occupation tax is | ||||||
25 | paid on the gross receipts derived from the use of the | ||||||
26 | commercial, coin-operated amusement and vending machines. This |
| |||||||
| |||||||
1 | paragraph is exempt from the provisions of Section 3-55. | ||||||
2 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
3 | Public Act 92-227), computers and communications equipment | ||||||
4 | utilized for any hospital purpose and equipment used in the | ||||||
5 | diagnosis, analysis, or treatment of hospital patients sold to | ||||||
6 | a lessor who leases the equipment, under a lease of one year or | ||||||
7 | longer executed or in effect at the time of the purchase, to a | ||||||
8 | hospital that has been issued an active tax exemption | ||||||
9 | identification number by the Department under Section 1g of | ||||||
10 | the Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
11 | from the provisions of Section 3-55. | ||||||
12 | (25) Beginning on August 2, 2001 (the effective date of | ||||||
13 | Public Act 92-227), personal property sold to a lessor who | ||||||
14 | leases the property, under a lease of one year or longer | ||||||
15 | executed or in effect at the time of the purchase, to a | ||||||
16 | governmental body that has been issued an active tax exemption | ||||||
17 | identification number by the Department under Section 1g of | ||||||
18 | the Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
19 | from the provisions of Section 3-55. | ||||||
20 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
21 | 2016, tangible personal property purchased from an Illinois | ||||||
22 | retailer by a taxpayer engaged in centralized purchasing | ||||||
23 | activities in Illinois who will, upon receipt of the property | ||||||
24 | in Illinois, temporarily store the property in Illinois (i) | ||||||
25 | for the purpose of subsequently transporting it outside this | ||||||
26 | State for use or consumption thereafter solely outside this |
| |||||||
| |||||||
1 | State or (ii) for the purpose of being processed, fabricated, | ||||||
2 | or manufactured into, attached to, or incorporated into other | ||||||
3 | tangible personal property to be transported outside this | ||||||
4 | State and thereafter used or consumed solely outside this | ||||||
5 | State. The Director of Revenue shall, pursuant to rules | ||||||
6 | adopted in accordance with the Illinois Administrative | ||||||
7 | Procedure Act, issue a permit to any taxpayer in good standing | ||||||
8 | with the Department who is eligible for the exemption under | ||||||
9 | this paragraph (26). The permit issued under this paragraph | ||||||
10 | (26) shall authorize the holder, to the extent and in the | ||||||
11 | manner specified in the rules adopted under this Act, to | ||||||
12 | purchase tangible personal property from a retailer exempt | ||||||
13 | from the taxes imposed by this Act. Taxpayers shall maintain | ||||||
14 | all necessary books and records to substantiate the use and | ||||||
15 | consumption of all such tangible personal property outside of | ||||||
16 | the State of Illinois. | ||||||
17 | (27) Beginning January 1, 2008, tangible personal property | ||||||
18 | used in the construction or maintenance of a community water | ||||||
19 | supply, as defined under Section 3.145 of the Environmental | ||||||
20 | Protection Act, that is operated by a not-for-profit | ||||||
21 | corporation that holds a valid water supply permit issued | ||||||
22 | under Title IV of the Environmental Protection Act. This | ||||||
23 | paragraph is exempt from the provisions of Section 3-55. | ||||||
24 | (28) Tangible personal property sold to a | ||||||
25 | public-facilities corporation, as described in Section | ||||||
26 | 11-65-10 of the Illinois Municipal Code, for purposes of |
| |||||||
| |||||||
1 | constructing or furnishing a municipal convention hall, but | ||||||
2 | only if the legal title to the municipal convention hall is | ||||||
3 | transferred to the municipality without any further | ||||||
4 | consideration by or on behalf of the municipality at the time | ||||||
5 | of the completion of the municipal convention hall or upon the | ||||||
6 | retirement or redemption of any bonds or other debt | ||||||
7 | instruments issued by the public-facilities corporation in | ||||||
8 | connection with the development of the municipal convention | ||||||
9 | hall. This exemption includes existing public-facilities | ||||||
10 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
11 | Municipal Code. This paragraph is exempt from the provisions | ||||||
12 | of Section 3-55. | ||||||
13 | (29) Beginning January 1, 2010 and continuing through | ||||||
14 | December 31, 2029, materials, parts, equipment, components, | ||||||
15 | and furnishings incorporated into or upon an aircraft as part | ||||||
16 | of the modification, refurbishment, completion, replacement, | ||||||
17 | repair, or maintenance of the aircraft. This exemption | ||||||
18 | includes consumable supplies used in the modification, | ||||||
19 | refurbishment, completion, replacement, repair, and | ||||||
20 | maintenance of aircraft. However, until January 1, 2024, this | ||||||
21 | exemption excludes any materials, parts, equipment, | ||||||
22 | components, and consumable supplies used in the modification, | ||||||
23 | replacement, repair, and maintenance of aircraft engines or | ||||||
24 | power plants, whether such engines or power plants are | ||||||
25 | installed or uninstalled upon any such aircraft. "Consumable | ||||||
26 | supplies" include, but are not limited to, adhesive, tape, |
| |||||||
| |||||||
1 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
2 | latex gloves, and protective films. | ||||||
3 | Beginning January 1, 2010 and continuing through December | ||||||
4 | 31, 2023, this exemption applies only to the transfer of | ||||||
5 | qualifying tangible personal property incident to the | ||||||
6 | modification, refurbishment, completion, replacement, repair, | ||||||
7 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
8 | Agency Certificate and are empowered to operate an approved | ||||||
9 | repair station by the Federal Aviation Administration, (ii) | ||||||
10 | have a Class IV Rating, and (iii) conduct operations in | ||||||
11 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
12 | The exemption does not include aircraft operated by a | ||||||
13 | commercial air carrier providing scheduled passenger air | ||||||
14 | service pursuant to authority issued under Part 121 or Part | ||||||
15 | 129 of the Federal Aviation Regulations. From January 1, 2024 | ||||||
16 | through December 31, 2029, this exemption applies only to the | ||||||
17 | use of qualifying tangible personal property by: (A) persons | ||||||
18 | who modify, refurbish, complete, repair, replace, or maintain | ||||||
19 | aircraft and who (i) hold an Air Agency Certificate and are | ||||||
20 | empowered to operate an approved repair station by the Federal | ||||||
21 | Aviation Administration, (ii) have a Class IV Rating, and | ||||||
22 | (iii) conduct operations in accordance with Part 145 of the | ||||||
23 | Federal Aviation Regulations; and (B) persons who engage in | ||||||
24 | the modification, replacement, repair, and maintenance of | ||||||
25 | aircraft engines or power plants without regard to whether or | ||||||
26 | not those persons meet the qualifications of item (A). |
| |||||||
| |||||||
1 | The changes made to this paragraph (29) by Public Act | ||||||
2 | 98-534 are declarative of existing law. It is the intent of the | ||||||
3 | General Assembly that the exemption under this paragraph (29) | ||||||
4 | applies continuously from January 1, 2010 through December 31, | ||||||
5 | 2024; however, no claim for credit or refund is allowed for | ||||||
6 | taxes paid as a result of the disallowance of this exemption on | ||||||
7 | or after January 1, 2015 and prior to February 5, 2020 (the | ||||||
8 | effective date of Public Act 101-629). | ||||||
9 | (30) Beginning January 1, 2017 and through December 31, | ||||||
10 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
11 | (31) Tangible personal property transferred to a purchaser | ||||||
12 | who is exempt from tax by operation of federal law. This | ||||||
13 | paragraph is exempt from the provisions of Section 3-55. | ||||||
14 | (32) Qualified tangible personal property used in the | ||||||
15 | construction or operation of a data center that has been | ||||||
16 | granted a certificate of exemption by the Department of | ||||||
17 | Commerce and Economic Opportunity, whether that tangible | ||||||
18 | personal property is purchased by the owner, operator, or | ||||||
19 | tenant of the data center or by a contractor or subcontractor | ||||||
20 | of the owner, operator, or tenant. Data centers that would | ||||||
21 | have qualified for a certificate of exemption prior to January | ||||||
22 | 1, 2020 had Public Act 101-31 been in effect, may apply for and | ||||||
23 | obtain an exemption for subsequent purchases of computer | ||||||
24 | equipment or enabling software purchased or leased to upgrade, | ||||||
25 | supplement, or replace computer equipment or enabling software | ||||||
26 | purchased or leased in the original investment that would have |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 into in to the qualifying data center. To | ||||||
9 | document the exemption allowed under this Section, the | ||||||
10 | retailer must obtain from the purchaser a copy of the | ||||||
11 | certificate of eligibility issued by the Department of | ||||||
12 | Commerce and 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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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) Tangible personal property sold by or on behalf of | ||||||
6 | the State Treasurer pursuant to the Revised Uniform Unclaimed | ||||||
7 | Property Act. This item (34) is exempt from the provisions of | ||||||
8 | Section 3-55. | ||||||
9 | (35) Beginning on January 1, 2024, tangible personal | ||||||
10 | property purchased by an active duty member of the armed | ||||||
11 | forces of the United States who presents valid military | ||||||
12 | identification and purchases the property using a form of | ||||||
13 | payment where the federal government is the payor. The member | ||||||
14 | of the armed forces must complete, at the point of sale, a form | ||||||
15 | prescribed by the Department of Revenue documenting that the | ||||||
16 | transaction is eligible for the exemption under this | ||||||
17 | paragraph. Retailers must keep the form as documentation of | ||||||
18 | the exemption in their records for a period of not less than 6 | ||||||
19 | years. "Armed forces of the United States" means the United | ||||||
20 | States Army, Navy, Air Force, Marine Corps, or Coast Guard. | ||||||
21 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
22 | (36) Materials furnished to a common interest community | ||||||
23 | association pursuant to a contract entered into with the | ||||||
24 | highway commissioner of a road district under subsection (k) | ||||||
25 | of Section 1-30 of the Common Interest Community Association | ||||||
26 | Act. This paragraph is exempt from the provisions of Section |
| |||||||
| |||||||
1 | 3-55. | ||||||
2 | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | ||||||
3 | Section 70-15, eff. 4-19-22; 102-700, Article 75, Section | ||||||
4 | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | ||||||
5 | Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15, | ||||||
6 | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | ||||||
7 | revised 12-12-23.) | ||||||
8 | Section 20. The Retailers' Occupation Tax Act is amended | ||||||
9 | by changing Section 2-5 as follows: | ||||||
10 | (35 ILCS 120/2-5) | ||||||
11 | Sec. 2-5. Exemptions. Gross receipts from proceeds from | ||||||
12 | the sale of the following tangible personal property are | ||||||
13 | exempt from the tax imposed by this Act: | ||||||
14 | (1) Farm chemicals. | ||||||
15 | (2) Farm machinery and equipment, both new and used, | ||||||
16 | including that manufactured on special order, certified by | ||||||
17 | the purchaser to be used primarily for production | ||||||
18 | agriculture or State or federal agricultural programs, | ||||||
19 | including individual replacement parts for the machinery | ||||||
20 | and equipment, including machinery and equipment purchased | ||||||
21 | for lease, and including implements of husbandry defined | ||||||
22 | in Section 1-130 of the Illinois Vehicle Code, farm | ||||||
23 | machinery and agricultural chemical and fertilizer | ||||||
24 | spreaders, and nurse wagons required to be registered |
| |||||||
| |||||||
1 | under Section 3-809 of the Illinois Vehicle Code, but | ||||||
2 | excluding other motor vehicles required to be registered | ||||||
3 | under the Illinois Vehicle Code. Horticultural polyhouses | ||||||
4 | or hoop houses used for propagating, growing, or | ||||||
5 | overwintering plants shall be considered farm machinery | ||||||
6 | and equipment under this item (2). Agricultural chemical | ||||||
7 | tender tanks and dry boxes shall include units sold | ||||||
8 | separately from a motor vehicle required to be licensed | ||||||
9 | and units sold mounted on a motor vehicle required to be | ||||||
10 | licensed, if the selling price of the tender is separately | ||||||
11 | stated. | ||||||
12 | Farm machinery and equipment shall include precision | ||||||
13 | farming equipment that is installed or purchased to be | ||||||
14 | installed on farm machinery and equipment including, but | ||||||
15 | not limited to, tractors, harvesters, sprayers, planters, | ||||||
16 | seeders, or spreaders. Precision farming equipment | ||||||
17 | includes, but is not limited to, soil testing sensors, | ||||||
18 | computers, monitors, software, global positioning and | ||||||
19 | mapping systems, and other such equipment. | ||||||
20 | Farm machinery and equipment also includes computers, | ||||||
21 | sensors, software, and related equipment used primarily in | ||||||
22 | the computer-assisted operation of production agriculture | ||||||
23 | facilities, equipment, and activities such as, but not | ||||||
24 | limited to, the collection, monitoring, and correlation of | ||||||
25 | animal and crop data for the purpose of formulating animal | ||||||
26 | diets and agricultural chemicals. |
| |||||||
| |||||||
1 | Beginning on January 1, 2024, farm machinery and | ||||||
2 | equipment also includes electrical power generation | ||||||
3 | equipment used primarily for production agriculture. | ||||||
4 | This item (2) is exempt from the provisions of Section | ||||||
5 | 2-70. | ||||||
6 | (3) Until July 1, 2003, distillation machinery and | ||||||
7 | equipment, sold as a unit or kit, assembled or installed | ||||||
8 | by the retailer, certified by the user to be used only for | ||||||
9 | the production of ethyl alcohol that will be used for | ||||||
10 | consumption as motor fuel or as a component of motor fuel | ||||||
11 | for the personal use of the user, and not subject to sale | ||||||
12 | or resale. | ||||||
13 | (4) Until July 1, 2003 and beginning again September | ||||||
14 | 1, 2004 through August 30, 2014, graphic arts machinery | ||||||
15 | and equipment, including repair and replacement parts, | ||||||
16 | both new and used, and including that manufactured on | ||||||
17 | special order or purchased for lease, certified by the | ||||||
18 | purchaser to be used primarily for graphic arts | ||||||
19 | production. Equipment includes chemicals or chemicals | ||||||
20 | acting as catalysts but only if the chemicals or chemicals | ||||||
21 | acting as catalysts effect a direct and immediate change | ||||||
22 | upon a graphic arts product. Beginning on July 1, 2017, | ||||||
23 | graphic arts machinery and equipment is included in the | ||||||
24 | manufacturing and assembling machinery and equipment | ||||||
25 | exemption under paragraph (14). | ||||||
26 | (5) A motor vehicle that is used for automobile |
| |||||||
| |||||||
1 | renting, as defined in the Automobile Renting Occupation | ||||||
2 | and Use Tax Act. This paragraph is exempt from the | ||||||
3 | provisions of Section 2-70. | ||||||
4 | (6) Personal property sold by a teacher-sponsored | ||||||
5 | student organization affiliated with an elementary or | ||||||
6 | secondary school located in Illinois. | ||||||
7 | (7) Until July 1, 2003, proceeds of that portion of | ||||||
8 | the selling price of a passenger car the sale of which is | ||||||
9 | subject to the Replacement Vehicle Tax. | ||||||
10 | (8) Personal property sold to an Illinois county fair | ||||||
11 | association for use in conducting, operating, or promoting | ||||||
12 | the county fair. | ||||||
13 | (9) Personal property sold to a not-for-profit arts or | ||||||
14 | cultural organization that establishes, by proof required | ||||||
15 | by the Department by rule, that it has received an | ||||||
16 | exemption under Section 501(c)(3) of the Internal Revenue | ||||||
17 | Code and that is organized and operated primarily for the | ||||||
18 | presentation or support of arts or cultural programming, | ||||||
19 | activities, or services. These organizations include, but | ||||||
20 | are not limited to, music and dramatic arts organizations | ||||||
21 | such as symphony orchestras and theatrical groups, arts | ||||||
22 | and cultural service organizations, local arts councils, | ||||||
23 | visual arts organizations, and media arts organizations. | ||||||
24 | On and after July 1, 2001 (the effective date of Public Act | ||||||
25 | 92-35), however, an entity otherwise eligible for this | ||||||
26 | exemption shall not make tax-free purchases unless it has |
| |||||||
| |||||||
1 | an active identification number issued by the Department. | ||||||
2 | (10) Personal property sold by a corporation, society, | ||||||
3 | association, foundation, institution, or organization, | ||||||
4 | other than a limited liability company, that is organized | ||||||
5 | and operated as a not-for-profit service enterprise for | ||||||
6 | the benefit of persons 65 years of age or older if the | ||||||
7 | personal property was not purchased by the enterprise for | ||||||
8 | the purpose of resale by the enterprise. | ||||||
9 | (11) Except as otherwise provided in this Section, | ||||||
10 | personal property sold to a governmental body, to a | ||||||
11 | 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, |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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, |
| |||||||
| |||||||
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, |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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, 2029, 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 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 exemption applies only to the sale | ||||||
9 | of qualifying tangible personal property to persons who | ||||||
10 | 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, 2029, 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). | ||||||
16 | (41) Tangible personal property sold to 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, | ||||||
20 | but only if the legal title to the municipal convention | ||||||
21 | hall is transferred to the municipality without any | ||||||
22 | further consideration by or on behalf of the municipality | ||||||
23 | at the time of the completion of the municipal convention | ||||||
24 | hall or upon the retirement or redemption of any bonds or | ||||||
25 | other debt instruments issued by the public-facilities | ||||||
26 | corporation in connection with the development of the |
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1 | municipal convention hall. This exemption includes | ||||||
2 | existing public-facilities corporations as provided in | ||||||
3 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
4 | paragraph is exempt from the provisions of Section 2-70. | ||||||
5 | (42) Beginning January 1, 2017 and through December | ||||||
6 | 31, 2026, menstrual pads, tampons, and menstrual cups. | ||||||
7 | (43) Merchandise that is subject to the Rental | ||||||
8 | Purchase Agreement Occupation and Use Tax. The purchaser | ||||||
9 | must certify that the item is purchased to be rented | ||||||
10 | subject to a rental-purchase rental purchase agreement, as | ||||||
11 | defined in the Rental-Purchase Rental Purchase Agreement | ||||||
12 | Act, and provide proof of registration under the Rental | ||||||
13 | Purchase Agreement Occupation and Use Tax Act. This | ||||||
14 | paragraph is exempt from the provisions of Section 2-70. | ||||||
15 | (44) Qualified tangible personal property used in the | ||||||
16 | construction or operation of a data center that has been | ||||||
17 | granted a certificate of exemption by the Department of | ||||||
18 | Commerce and Economic Opportunity, whether that tangible | ||||||
19 | personal property is purchased by the owner, operator, or | ||||||
20 | tenant of the data center or by a contractor or | ||||||
21 | subcontractor of the owner, operator, or tenant. Data | ||||||
22 | centers that would have qualified for a certificate of | ||||||
23 | exemption prior to January 1, 2020 had Public Act 101-31 | ||||||
24 | been in effect, may apply for and obtain an exemption for | ||||||
25 | subsequent purchases of computer equipment or enabling | ||||||
26 | software purchased or leased to upgrade, supplement, or |
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1 | replace computer equipment or enabling software purchased | ||||||
2 | or leased in the original investment that would have | ||||||
3 | qualified. | ||||||
4 | The Department of Commerce and Economic Opportunity | ||||||
5 | shall grant a certificate of exemption under this item | ||||||
6 | (44) to qualified data centers as defined by Section | ||||||
7 | 605-1025 of the Department of Commerce and Economic | ||||||
8 | Opportunity Law of the Civil Administrative Code of | ||||||
9 | Illinois. | ||||||
10 | For the purposes of this item (44): | ||||||
11 | "Data center" means a building or a series of | ||||||
12 | buildings rehabilitated or constructed to house | ||||||
13 | working servers in one physical location or multiple | ||||||
14 | sites within the State of Illinois. | ||||||
15 | "Qualified tangible personal property" means: | ||||||
16 | electrical systems and equipment; climate control and | ||||||
17 | chilling equipment and systems; mechanical systems and | ||||||
18 | equipment; monitoring and secure systems; emergency | ||||||
19 | generators; hardware; computers; servers; data storage | ||||||
20 | devices; network connectivity equipment; racks; | ||||||
21 | cabinets; telecommunications cabling infrastructure; | ||||||
22 | raised floor systems; peripheral components or | ||||||
23 | systems; software; mechanical, electrical, or plumbing | ||||||
24 | systems; battery systems; cooling systems and towers; | ||||||
25 | temperature control systems; other cabling; and other | ||||||
26 | data center infrastructure equipment and systems |
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1 | necessary to operate qualified tangible personal | ||||||
2 | property, including fixtures; and component parts of | ||||||
3 | any of the foregoing, including installation, | ||||||
4 | maintenance, repair, refurbishment, and replacement of | ||||||
5 | qualified tangible personal property to generate, | ||||||
6 | transform, transmit, distribute, or manage electricity | ||||||
7 | necessary to operate qualified tangible personal | ||||||
8 | property; and all other tangible personal property | ||||||
9 | that is essential to the operations of a computer data | ||||||
10 | center. The term "qualified tangible personal | ||||||
11 | property" also includes building materials physically | ||||||
12 | incorporated into the qualifying data center. To | ||||||
13 | document the exemption allowed under this Section, the | ||||||
14 | retailer must obtain from the purchaser a copy of the | ||||||
15 | certificate of eligibility issued by the Department of | ||||||
16 | Commerce and Economic Opportunity. | ||||||
17 | This item (44) is exempt from the provisions of | ||||||
18 | Section 2-70. | ||||||
19 | (45) Beginning January 1, 2020 and through December | ||||||
20 | 31, 2020, sales of tangible personal property made by a | ||||||
21 | marketplace seller over a marketplace for which tax is due | ||||||
22 | under this Act but for which use tax has been collected and | ||||||
23 | remitted to the Department by a marketplace facilitator | ||||||
24 | under Section 2d of the Use Tax Act are exempt from tax | ||||||
25 | under this Act. A marketplace seller claiming this | ||||||
26 | exemption shall maintain books and records demonstrating |
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1 | that the use tax on such sales has been collected and | ||||||
2 | remitted by a marketplace facilitator. Marketplace sellers | ||||||
3 | that have properly remitted tax under this Act on such | ||||||
4 | sales may file a claim for credit as provided in Section 6 | ||||||
5 | of this Act. No claim is allowed, however, for such taxes | ||||||
6 | for which a credit or refund has been issued to the | ||||||
7 | marketplace facilitator under the Use Tax Act, or for | ||||||
8 | which the marketplace facilitator has filed a claim for | ||||||
9 | credit or refund under the Use Tax Act. | ||||||
10 | (46) Beginning July 1, 2022, breast pumps, breast pump | ||||||
11 | collection and storage supplies, and breast pump kits. | ||||||
12 | This item (46) is exempt from the provisions of Section | ||||||
13 | 2-70. As used in this item (46): | ||||||
14 | "Breast pump" means an electrically controlled or | ||||||
15 | manually controlled pump device designed or marketed to be | ||||||
16 | used to express milk from a human breast during lactation, | ||||||
17 | including the pump device and any battery, AC adapter, or | ||||||
18 | other power supply unit that is used to power the pump | ||||||
19 | device and is packaged and sold with the pump device at the | ||||||
20 | time of sale. | ||||||
21 | "Breast pump collection and storage supplies" means | ||||||
22 | items of tangible personal property designed or marketed | ||||||
23 | to be used in conjunction with a breast pump to collect | ||||||
24 | milk expressed from a human breast and to store collected | ||||||
25 | milk until it is ready for consumption. | ||||||
26 | "Breast pump collection and storage supplies" |
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1 | includes, but is not limited to: breast shields and breast | ||||||
2 | shield connectors; breast pump tubes and tubing adapters; | ||||||
3 | breast pump valves and membranes; backflow protectors and | ||||||
4 | backflow protector adaptors; bottles and bottle caps | ||||||
5 | specific to the operation of the breast pump; and breast | ||||||
6 | milk storage bags. | ||||||
7 | "Breast pump collection and storage supplies" does not | ||||||
8 | include: (1) bottles and bottle caps not specific to the | ||||||
9 | operation of the breast pump; (2) breast pump travel bags | ||||||
10 | and other similar carrying accessories, including ice | ||||||
11 | packs, labels, and other similar products; (3) breast pump | ||||||
12 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
13 | shells, and other similar products; and (5) creams, | ||||||
14 | ointments, and other similar products that relieve | ||||||
15 | breastfeeding-related symptoms or conditions of the | ||||||
16 | breasts or nipples, unless sold as part of a breast pump | ||||||
17 | kit that is pre-packaged by the breast pump manufacturer | ||||||
18 | or distributor. | ||||||
19 | "Breast pump kit" means a kit that: (1) contains no | ||||||
20 | more than a breast pump, breast pump collection and | ||||||
21 | storage supplies, a rechargeable battery for operating the | ||||||
22 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
23 | packs, and a breast pump carrying case; and (2) is | ||||||
24 | pre-packaged as a breast pump kit by the breast pump | ||||||
25 | manufacturer or distributor. | ||||||
26 | (47) Tangible personal property sold by or on behalf |
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1 | of the State Treasurer pursuant to the Revised Uniform | ||||||
2 | Unclaimed Property Act. This item (47) is exempt from the | ||||||
3 | provisions of Section 2-70. | ||||||
4 | (48) Beginning on January 1, 2024, tangible personal | ||||||
5 | property purchased by an active duty member of the armed | ||||||
6 | forces of the United States who presents valid military | ||||||
7 | identification and purchases the property using a form of | ||||||
8 | payment where the federal government is the payor. The | ||||||
9 | member of the armed forces must complete, at the point of | ||||||
10 | sale, a form prescribed by the Department of Revenue | ||||||
11 | documenting that the transaction is eligible for the | ||||||
12 | exemption under this paragraph. Retailers must keep the | ||||||
13 | form as documentation of the exemption in their records | ||||||
14 | for a period of not less than 6 years. "Armed forces of the | ||||||
15 | United States" means the United States Army, Navy, Air | ||||||
16 | Force, Marine Corps, or Coast Guard. This paragraph is | ||||||
17 | exempt from the provisions of Section 2-70. | ||||||
18 | (49) Materials furnished to a common interest | ||||||
19 | community association pursuant to a contract entered into | ||||||
20 | with the highway commissioner of a road district under | ||||||
21 | subsection (k) of Section 1-30 of the Common Interest | ||||||
22 | Community Association Act. This paragraph is exempt from | ||||||
23 | the provisions of Section 2-70. | ||||||
24 | (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; | ||||||
25 | 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, | ||||||
26 | Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. |
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| |||||||
1 | 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section | ||||||
2 | 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff. | ||||||
3 | 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised | ||||||
4 | 12-12-23.) |