98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2619

 

Introduced 11/6/2013, by Sen. Dave Syverson

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/2-5

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for qualified tangible personal property used in the construction or operation of a data center. Effective immediately.


LRB098 14608 HLH 49405 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2619LRB098 14608 HLH 49405 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-5 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by a not-for-profit arts or
20cultural organization that establishes, by proof required by
21the Department by rule, that it has received an exemption under
22Section 501(c)(3) of the Internal Revenue Code and that is
23organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active exemption
24identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon a
11graphic arts product.
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23    (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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

 

 

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1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6    (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13    Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23    (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

 

 

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1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5    (14) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14    (15) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19    (16) Coal and aggregate exploration, mining, off-highway
20offhighway hauling, processing, maintenance, and reclamation
21equipment, including replacement parts and equipment, and
22including equipment purchased for lease, but excluding motor
23vehicles required to be registered under the Illinois Vehicle
24Code. The changes made to this Section by Public Act 97-767
25apply on and after July 1, 2003, but no claim for credit or
26refund is allowed on or after August 16, 2013 (the effective

 

 

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1date of Public Act 98-456) this amendatory Act of the 98th
2General Assembly for such taxes paid during the period
3beginning July 1, 2003 and ending on August 16, 2013 (the
4effective date of Public Act 98-456) this amendatory Act of the
598th General Assembly.
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order for
22a particular purchaser. The exemption provided by this
23paragraph (18) does not include machinery and equipment used in
24(i) the generation of electricity for wholesale or retail sale;
25(ii) the generation or treatment of natural or artificial gas
26for wholesale or retail sale that is delivered to customers

 

 

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1through pipes, pipelines, or mains; or (iii) the treatment of
2water for wholesale or retail sale that is delivered to
3customers through pipes, pipelines, or mains. The provisions of
4Public Act 98-583 this amendatory Act of the 98th General
5Assembly are declaratory of existing law as to the meaning and
6scope of this exemption.
7    (19) Personal property delivered to a purchaser or
8purchaser's donee inside Illinois when the purchase order for
9that personal property was received by a florist located
10outside Illinois who has a florist located inside Illinois
11deliver the personal property.
12    (20) Semen used for artificial insemination of livestock
13for direct agricultural production.
14    (21) Horses, or interests in horses, registered with and
15meeting the requirements of any of the Arabian Horse Club
16Registry of America, Appaloosa Horse Club, American Quarter
17Horse Association, United States Trotting Association, or
18Jockey Club, as appropriate, used for purposes of breeding or
19racing for prizes. This item (21) is exempt from the provisions
20of Section 3-90, and the exemption provided for under this item
21(21) applies for all periods beginning May 30, 1995, but no
22claim for credit or refund is allowed on or after January 1,
232008 for such taxes paid during the period beginning May 30,
242000 and ending on January 1, 2008.
25    (22) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12    (26) Beginning July 1, 1999, game or game birds purchased
13at a "game breeding and hunting preserve area" as that term is
14used in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 3-90.
16    (27) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

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1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (28) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-90.
22    (29) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

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1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 3-90.
6    (30) Beginning January 1, 2001 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act or the Specialized Mental
18Health Rehabilitation Act of 2013.
19    (31) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, computers and communications
21equipment utilized for any hospital purpose and equipment used
22in the diagnosis, analysis, or treatment of hospital patients
23purchased by a lessor who leases the equipment, under a lease
24of one year or longer executed or in effect at the time the
25lessor would otherwise be subject to the tax imposed by this
26Act, to a hospital that has been issued an active tax exemption

 

 

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

 

 

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1exemption or used in any other nonexempt manner, the lessor
2shall be liable for the tax imposed under this Act or the
3Service Use Tax Act, as the case may be, based on the fair
4market value of the property at the time the nonqualifying use
5occurs. No lessor shall collect or attempt to collect an amount
6(however designated) that purports to reimburse that lessor for
7the tax imposed by this Act or the Service Use Tax Act, as the
8case may be, if the tax has not been paid by the lessor. If a
9lessor improperly collects any such amount from the lessee, the
10lessee shall have a legal right to claim a refund of that
11amount from the lessor. If, however, that amount is not
12refunded to the lessee for any reason, the lessor is liable to
13pay that amount to the Department. This paragraph is exempt
14from the provisions of Section 3-90.
15    (33) On and after July 1, 2003 and through June 30, 2004,
16the use in this State of motor vehicles of the second division
17with a gross vehicle weight in excess of 8,000 pounds and that
18are subject to the commercial distribution fee imposed under
19Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
201, 2004 and through June 30, 2005, the use in this State of
21motor vehicles of the second division: (i) with a gross vehicle
22weight rating in excess of 8,000 pounds; (ii) that are subject
23to the commercial distribution fee imposed under Section
243-815.1 of the Illinois Vehicle Code; and (iii) that are
25primarily used for commercial purposes. Through June 30, 2005,
26this exemption applies to repair and replacement parts added

 

 

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1after the initial purchase of such a motor vehicle if that
2motor vehicle is used in a manner that would qualify for the
3rolling stock exemption otherwise provided for in this Act. For
4purposes of this paragraph, the term "used for commercial
5purposes" means the transportation of persons or property in
6furtherance of any commercial or industrial enterprise,
7whether for-hire or not.
8    (34) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued under
13Title IV of the Environmental Protection Act. This paragraph is
14exempt from the provisions of Section 3-90.
15    (35) Beginning January 1, 2010, materials, parts,
16equipment, components, and furnishings incorporated into or
17upon an aircraft as part of the modification, refurbishment,
18completion, replacement, repair, or maintenance of the
19aircraft. This exemption includes consumable supplies used in
20the modification, refurbishment, completion, replacement,
21repair, and maintenance of aircraft, but excludes any
22materials, parts, equipment, components, and consumable
23supplies used in the modification, replacement, repair, and
24maintenance of aircraft engines or power plants, whether such
25engines or power plants are installed or uninstalled upon any
26such aircraft. "Consumable supplies" include, but are not

 

 

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1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to the use of qualifying
4tangible personal property by persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations. The exemption does not include aircraft operated
11by a commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part 129
13of the Federal Aviation Regulations. The changes made to this
14paragraph (35) by Public Act 98-534 this amendatory Act of the
1598th General Assembly are declarative of existing law.
16    (36) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

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1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-90.
4    (37) Beginning on July 1, 2014 and until July 1, 2024,
5qualified tangible personal property used in the construction
6or operation of a data center that has been granted a
7Certificate of Exemption by the Department of Commerce and
8Economic Opportunity.
9    The Department of Commerce and Economic Opportunity shall
10grant a Certificate of Exemption under this item (37) if: (i)
11the data center creates and retains at least 30 full-time
12equivalent jobs; (ii) each of those employees is paid at least
13125% of the median wage paid to full-time employees in the
14county where the data center is located, as determined by the
15United States Bureau of Labor Statistics; and (iii) the owner
16or operator of the data center makes a capital investment of at
17least $200,000,000 at the data center within a period of time
18specified by the Department of Commerce and Economic
19Opportunity by rule.
20    For the purposes of this item (37):
21        "Data center" means a building rehabilitated or
22    constructed to house a group of networked server computers
23    in one physical location in order to centralize the
24    storage, management, and dissemination of data and
25    information pertaining to a particular business, taxonomy,
26    or body of knowledge.

 

 

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1        "Qualified tangible personal property" means
2    electrical systems; cooling systems; emergency generators;
3    hardware or distributed mainframe computers or servers;
4    data storage devices; network connectivity equipment;
5    racks; cabinets; raised floor systems; peripheral
6    components or systems; software; mechanical, electrical,
7    or plumbing systems necessary to operate other items of
8    tangible personal property, including fixtures; and
9    component parts of any of the foregoing.
10(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
11eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,
12eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
1398-534, eff. 8-23-13; 98-574, eff. 1-1-14; 98-583, eff. 1-1-14;
14revised 9-9-13.)
 
15    Section 10. The Service Use Tax Act is amended by changing
16Section 3-5 as follows:
 
17    (35 ILCS 110/3-5)
18    Sec. 3-5. Exemptions. Use of the following tangible
19personal property is exempt from the tax imposed by this Act:
20    (1) Personal property purchased from a corporation,
21society, association, foundation, institution, or
22organization, other than a limited liability company, that is
23organized and operated as a not-for-profit service enterprise
24for the benefit of persons 65 years of age or older if the

 

 

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1personal property was not purchased by the enterprise for the
2purpose of resale by the enterprise.
3    (2) Personal property purchased by a non-profit Illinois
4county fair association for use in conducting, operating, or
5promoting the county fair.
6    (3) Personal property purchased by a not-for-profit arts or
7cultural organization that establishes, by proof required by
8the Department by rule, that it has received an exemption under
9Section 501(c)(3) of the Internal Revenue Code and that is
10organized and operated primarily for the presentation or
11support of arts or cultural programming, activities, or
12services. These organizations include, but are not limited to,
13music and dramatic arts organizations such as symphony
14orchestras and theatrical groups, arts and cultural service
15organizations, local arts councils, visual arts organizations,
16and media arts organizations. On and after the effective date
17of this amendatory Act of the 92nd General Assembly, however,
18an entity otherwise eligible for this exemption shall not make
19tax-free purchases unless it has an active identification
20number issued by the Department.
21    (4) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (5) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

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

 

 

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1required to be licensed and units sold mounted on a motor
2vehicle required to be licensed if the selling price of the
3tender is separately stated.
4    Farm machinery and equipment shall include precision
5farming equipment that is installed or purchased to be
6installed on farm machinery and equipment including, but not
7limited to, tractors, harvesters, sprayers, planters, seeders,
8or spreaders. Precision farming equipment includes, but is not
9limited to, soil testing sensors, computers, monitors,
10software, global positioning and mapping systems, and other
11such equipment.
12    Farm machinery and equipment also includes computers,
13sensors, software, and related equipment used primarily in the
14computer-assisted operation of production agriculture
15facilities, equipment, and activities such as, but not limited
16to, the collection, monitoring, and correlation of animal and
17crop data for the purpose of formulating animal diets and
18agricultural chemicals. This item (7) is exempt from the
19provisions of Section 3-75.
20    (8) Until June 30, 2013, fuel and petroleum products sold
21to or used by an air common carrier, certified by the carrier
22to be used for consumption, shipment, or storage in the conduct
23of its business as an air common carrier, for a flight destined
24for or returning from a location or locations outside the
25United States without regard to previous or subsequent domestic
26stopovers.

 

 

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

 

 

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1equipment purchased for lease; but excluding motor vehicles
2required to be registered under the Illinois Vehicle Code.
3    (11) Proceeds from the sale of photoprocessing machinery
4and equipment, including repair and replacement parts, both new
5and used, including that manufactured on special order,
6certified by the purchaser to be used primarily for
7photoprocessing, and including photoprocessing machinery and
8equipment purchased for lease.
9    (12) Coal and aggregate exploration, mining, off-highway
10offhighway hauling, processing, maintenance, and reclamation
11equipment, including replacement parts and equipment, and
12including equipment purchased for lease, but excluding motor
13vehicles required to be registered under the Illinois Vehicle
14Code. The changes made to this Section by Public Act 97-767
15apply on and after July 1, 2003, but no claim for credit or
16refund is allowed on or after August 16, 2013 (the effective
17date of Public Act 98-456) this amendatory Act of the 98th
18General Assembly for such taxes paid during the period
19beginning July 1, 2003 and ending on August 16, 2013 (the
20effective date of Public Act 98-456) this amendatory Act of the
2198th General Assembly.
22    (13) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (14) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

 

 

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1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (14) is exempt from the provisions
4of Section 3-75, and the exemption provided for under this item
5(14) applies for all periods beginning May 30, 1995, but no
6claim for credit or refund is allowed on or after the effective
7date of this amendatory Act of the 95th General Assembly for
8such taxes paid during the period beginning May 30, 2000 and
9ending on the effective date of this amendatory Act of the 95th
10General Assembly.
11    (15) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients purchased by a
14lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time the lessor would
16otherwise be subject to the tax imposed by this Act, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of the
19Retailers' Occupation Tax Act. If the equipment is leased in a
20manner that does not qualify for this exemption or is used in
21any other non-exempt manner, the lessor shall be liable for the
22tax imposed under this Act or the Use Tax Act, as the case may
23be, based on the fair market value of the property at the time
24the non-qualifying use occurs. No lessor shall collect or
25attempt to collect an amount (however designated) that purports
26to reimburse that lessor for the tax imposed by this Act or the

 

 

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

 

 

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1    (17) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is donated for
4disaster relief to be used in a State or federally declared
5disaster area in Illinois or bordering Illinois by a
6manufacturer or retailer that is registered in this State to a
7corporation, society, association, foundation, or institution
8that has been issued a sales tax exemption identification
9number by the Department that assists victims of the disaster
10who reside within the declared disaster area.
11    (18) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is used in the
14performance of infrastructure repairs in this State, including
15but not limited to municipal roads and streets, access roads,
16bridges, sidewalks, waste disposal systems, water and sewer
17line extensions, water distribution and purification
18facilities, storm water drainage and retention facilities, and
19sewage treatment facilities, resulting from a State or
20federally declared disaster in Illinois or bordering Illinois
21when such repairs are initiated on facilities located in the
22declared disaster area within 6 months after the disaster.
23    (19) Beginning July 1, 1999, game or game birds purchased
24at a "game breeding and hunting preserve area" as that term is
25used in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 3-75.

 

 

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1    (20) A motor vehicle, as that term is defined in Section
21-146 of the Illinois Vehicle Code, that is donated to a
3corporation, limited liability company, society, association,
4foundation, or institution that is determined by the Department
5to be organized and operated exclusively for educational
6purposes. For purposes of this exemption, "a corporation,
7limited liability company, society, association, foundation,
8or institution organized and operated exclusively for
9educational purposes" means all tax-supported public schools,
10private schools that offer systematic instruction in useful
11branches of learning by methods common to public schools and
12that compare favorably in their scope and intensity with the
13course of study presented in tax-supported schools, and
14vocational or technical schools or institutes organized and
15operated exclusively to provide a course of study of not less
16than 6 weeks duration and designed to prepare individuals to
17follow a trade or to pursue a manual, technical, mechanical,
18industrial, business, or commercial occupation.
19    (21) Beginning January 1, 2000, personal property,
20including food, purchased through fundraising events for the
21benefit of a public or private elementary or secondary school,
22a group of those schools, or one or more school districts if
23the events are sponsored by an entity recognized by the school
24district that consists primarily of volunteers and includes
25parents and teachers of the school children. This paragraph
26does not apply to fundraising events (i) for the benefit of

 

 

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1private home instruction or (ii) for which the fundraising
2entity purchases the personal property sold at the events from
3another individual or entity that sold the property for the
4purpose of resale by the fundraising entity and that profits
5from the sale to the fundraising entity. This paragraph is
6exempt from the provisions of Section 3-75.
7    (22) Beginning January 1, 2000 and through December 31,
82001, new or used automatic vending machines that prepare and
9serve hot food and beverages, including coffee, soup, and other
10items, and replacement parts for these machines. Beginning
11January 1, 2002 and through June 30, 2003, machines and parts
12for machines used in commercial, coin-operated amusement and
13vending business if a use or occupation tax is paid on the
14gross receipts derived from the use of the commercial,
15coin-operated amusement and vending machines. This paragraph
16is exempt from the provisions of Section 3-75.
17    (23) Beginning August 23, 2001 and through June 30, 2016,
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages, soft
20drinks, and food that has been prepared for immediate
21consumption) and prescription and nonprescription medicines,
22drugs, medical appliances, and insulin, urine testing
23materials, syringes, and needles used by diabetics, for human
24use, when purchased for use by a person receiving medical
25assistance under Article V of the Illinois Public Aid Code who
26resides in a licensed long-term care facility, as defined in

 

 

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

 

 

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1exempt from the provisions of Section 3-75.
2    (25) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, personal property purchased by a
4lessor who leases the property, under a lease of one year or
5longer executed or in effect at the time the lessor would
6otherwise be subject to the tax imposed by this Act, to a
7governmental body that has been issued an active tax exemption
8identification number by the Department under Section 1g of the
9Retailers' Occupation Tax Act. If the property is leased in a
10manner that does not qualify for this exemption or is used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Use Tax Act, as the case may
13be, based on the fair market value of the property at the time
14the nonqualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that purports
16to reimburse that lessor for the tax imposed by this Act or the
17Use Tax Act, as the case may be, if the tax has not been paid by
18the lessor. If a lessor improperly collects any such amount
19from the lessee, the lessee shall have a legal right to claim a
20refund of that amount from the lessor. If, however, that amount
21is not refunded to the lessee for any reason, the lessor is
22liable to pay that amount to the Department. This paragraph is
23exempt from the provisions of Section 3-75.
24    (26) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued under
3Title IV of the Environmental Protection Act. This paragraph is
4exempt from the provisions of Section 3-75.
5    (27) Beginning January 1, 2010, materials, parts,
6equipment, components, and furnishings incorporated into or
7upon an aircraft as part of the modification, refurbishment,
8completion, replacement, repair, or maintenance of the
9aircraft. This exemption includes consumable supplies used in
10the modification, refurbishment, completion, replacement,
11repair, and maintenance of aircraft, but excludes any
12materials, parts, equipment, components, and consumable
13supplies used in the modification, replacement, repair, and
14maintenance of aircraft engines or power plants, whether such
15engines or power plants are installed or uninstalled upon any
16such aircraft. "Consumable supplies" include, but are not
17limited to, adhesive, tape, sandpaper, general purpose
18lubricants, cleaning solution, latex gloves, and protective
19films. This exemption applies only to the use of qualifying
20tangible personal property transferred incident to the
21modification, refurbishment, completion, replacement, repair,
22or maintenance of aircraft by persons who (i) hold an Air
23Agency Certificate and are empowered to operate an approved
24repair station by the Federal Aviation Administration, (ii)
25have a Class IV Rating, and (iii) conduct operations in
26accordance with Part 145 of the Federal Aviation Regulations.

 

 

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1The exemption does not include aircraft operated by a
2commercial air carrier providing scheduled passenger air
3service pursuant to authority issued under Part 121 or Part 129
4of the Federal Aviation Regulations. The changes made to this
5paragraph (27) by Public Act 98-534 this amendatory Act of the
698th General Assembly are declarative of existing law.
7    (28) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt instruments
16issued by the public-facilities corporation in connection with
17the development of the municipal convention hall. This
18exemption includes existing public-facilities corporations as
19provided in Section 11-65-25 of the Illinois Municipal Code.
20This paragraph is exempt from the provisions of Section 3-75.
21    (29) Beginning on July 1, 2014 and until July 1, 2024,
22qualified tangible personal property used in the construction
23or operation of a data center that has been granted a
24Certificate of Exemption by the Department of Commerce and
25Economic Opportunity.
26    The Department of Commerce and Economic Opportunity shall

 

 

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1grant a Certificate of Exemption under this item (29) if: (i)
2the data center creates and retains at least 30 full-time
3equivalent jobs; (ii) each of those employees is paid at least
4125% of the median wage paid to full-time employees in the
5county where the data center is located, as determined by the
6United States Bureau of Labor Statistics; and (iii) the owner
7or operator of the data center makes a capital investment of at
8least $200,000,000 at the data center within a period of time
9specified by the Department of Commerce and Economic
10Opportunity by rule.
11    For the purposes of this item (29):
12        "Data center" means a building rehabilitated or
13    constructed to house a group of networked server computers
14    in one physical location in order to centralize the
15    storage, management, and dissemination of data and
16    information pertaining to a particular business, taxonomy,
17    or body of knowledge.
18        "Qualified tangible personal property" means
19    electrical systems; cooling systems; emergency generators;
20    hardware or distributed mainframe computers or servers;
21    data storage devices; network connectivity equipment;
22    racks; cabinets; raised floor systems; peripheral
23    components or systems; software; mechanical, electrical,
24    or plumbing systems necessary to operate other items of
25    tangible personal property, including fixtures; and
26    component parts of any of the foregoing.

 

 

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1(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
2eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,
3eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
498-534, eff. 8-23-13; revised 9-9-13.)
 
5    Section 15. The Service Occupation Tax Act is amended by
6changing Section 3-5 as follows:
 
7    (35 ILCS 115/3-5)
8    Sec. 3-5. Exemptions. The following tangible personal
9property is exempt from the tax imposed by this Act:
10    (1) Personal property sold by a corporation, society,
11association, foundation, institution, or organization, other
12than a limited liability company, that is organized and
13operated as a not-for-profit service enterprise for the benefit
14of persons 65 years of age or older if the personal property
15was not purchased by the enterprise for the purpose of resale
16by the enterprise.
17    (2) Personal property purchased by a not-for-profit
18Illinois county fair association for use in conducting,
19operating, or promoting the county fair.
20    (3) Personal property purchased by any not-for-profit arts
21or cultural organization that establishes, by proof required by
22the Department by rule, that it has received an exemption under
23Section 501(c)(3) of the Internal Revenue Code and that is
24organized and operated primarily for the presentation or

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after the effective date
7of this amendatory Act of the 92nd General Assembly, however,
8an entity otherwise eligible for this exemption shall not make
9tax-free purchases unless it has an active identification
10number issued by the Department.
11    (4) Legal tender, currency, medallions, or gold or silver
12coinage issued by the State of Illinois, the government of the
13United States of America, or the government of any foreign
14country, and bullion.
15    (5) Until July 1, 2003 and beginning again on September 1,
162004 through August 30, 2014, graphic arts machinery and
17equipment, including repair and replacement parts, both new and
18used, and including that manufactured on special order or
19purchased for lease, certified by the purchaser to be used
20primarily for graphic arts production. Equipment includes
21chemicals or chemicals acting as catalysts but only if the
22chemicals or chemicals acting as catalysts effect a direct and
23immediate change upon a graphic arts product.
24    (6) Personal property sold by a teacher-sponsored student
25organization affiliated with an elementary or secondary school
26located in Illinois.

 

 

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

 

 

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1such equipment.
2    Farm machinery and equipment also includes computers,
3sensors, software, and related equipment used primarily in the
4computer-assisted operation of production agriculture
5facilities, equipment, and activities such as, but not limited
6to, the collection, monitoring, and correlation of animal and
7crop data for the purpose of formulating animal diets and
8agricultural chemicals. This item (7) is exempt from the
9provisions of Section 3-55.
10    (8) Until June 30, 2013, fuel and petroleum products sold
11to or used by an air common carrier, certified by the carrier
12to be used for consumption, shipment, or storage in the conduct
13of its business as an air common carrier, for a flight destined
14for or returning from a location or locations outside the
15United States without regard to previous or subsequent domestic
16stopovers.
17    Beginning July 1, 2013, fuel and petroleum products sold to
18or used by an air carrier, certified by the carrier to be used
19for consumption, shipment, or storage in the conduct of its
20business as an air common carrier, for a flight that (i) is
21engaged in foreign trade or is engaged in trade between the
22United States and any of its possessions and (ii) transports at
23least one individual or package for hire from the city of
24origination to the city of final destination on the same
25aircraft, without regard to a change in the flight number of
26that aircraft.

 

 

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1    (9) Proceeds of mandatory service charges separately
2stated on customers' bills for the purchase and consumption of
3food and beverages, to the extent that the proceeds of the
4service charge are in fact turned over as tips or as a
5substitute for tips to the employees who participate directly
6in preparing, serving, hosting or cleaning up the food or
7beverage function with respect to which the service charge is
8imposed.
9    (10) Until July 1, 2003, oil field exploration, drilling,
10and production equipment, including (i) rigs and parts of rigs,
11rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
12tubular goods, including casing and drill strings, (iii) pumps
13and pump-jack units, (iv) storage tanks and flow lines, (v) any
14individual replacement part for oil field exploration,
15drilling, and production equipment, and (vi) machinery and
16equipment purchased for lease; but excluding motor vehicles
17required to be registered under the Illinois Vehicle Code.
18    (11) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including that
20manufactured on special order, certified by the purchaser to be
21used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23    (12) Coal and aggregate exploration, mining, off-highway
24offhighway hauling, processing, maintenance, and reclamation
25equipment, including replacement parts and equipment, and
26including equipment purchased for lease, but excluding motor

 

 

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1vehicles required to be registered under the Illinois Vehicle
2Code. The changes made to this Section by Public Act 97-767
3apply on and after July 1, 2003, but no claim for credit or
4refund is allowed on or after August 16, 2013 (the effective
5date of Public Act 98-456) this amendatory Act of the 98th
6General Assembly for such taxes paid during the period
7beginning July 1, 2003 and ending on August 16, 2013 (the
8effective date of Public Act 98-456) this amendatory Act of the
998th General Assembly.
10    (13) Beginning January 1, 1992 and through June 30, 2016,
11food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages, soft
13drinks and food that has been prepared for immediate
14consumption) and prescription and non-prescription medicines,
15drugs, medical appliances, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, when purchased for use by a person receiving medical
18assistance under Article V of the Illinois Public Aid Code who
19resides in a licensed long-term care facility, as defined in
20the Nursing Home Care Act, or in a licensed facility as defined
21in the ID/DD Community Care Act or the Specialized Mental
22Health Rehabilitation Act of 2013.
23    (14) Semen used for artificial insemination of livestock
24for direct agricultural production.
25    (15) Horses, or interests in horses, registered with and
26meeting the requirements of any of the Arabian Horse Club

 

 

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1Registry of America, Appaloosa Horse Club, American Quarter
2Horse Association, United States Trotting Association, or
3Jockey Club, as appropriate, used for purposes of breeding or
4racing for prizes. This item (15) is exempt from the provisions
5of Section 3-55, and the exemption provided for under this item
6(15) applies for all periods beginning May 30, 1995, but no
7claim for credit or refund is allowed on or after January 1,
82008 (the effective date of Public Act 95-88) for such taxes
9paid during the period beginning May 30, 2000 and ending on
10January 1, 2008 (the effective date of Public Act 95-88).
11    (16) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients sold to a lessor
14who leases the equipment, under a lease of one year or longer
15executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act.
19    (17) Personal property sold to a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time of the purchase, to a governmental body that
22has been issued an active tax exemption identification number
23by the Department under Section 1g of the Retailers' Occupation
24Tax Act.
25    (18) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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1before December 31, 2004, personal property that is donated for
2disaster relief to be used in a State or federally declared
3disaster area in Illinois or bordering Illinois by a
4manufacturer or retailer that is registered in this State to a
5corporation, society, association, foundation, or institution
6that has been issued a sales tax exemption identification
7number by the Department that assists victims of the disaster
8who reside within the declared disaster area.
9    (19) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is used in the
12performance of infrastructure repairs in this State, including
13but not limited to municipal roads and streets, access roads,
14bridges, sidewalks, waste disposal systems, water and sewer
15line extensions, water distribution and purification
16facilities, storm water drainage and retention facilities, and
17sewage treatment facilities, resulting from a State or
18federally declared disaster in Illinois or bordering Illinois
19when such repairs are initiated on facilities located in the
20declared disaster area within 6 months after the disaster.
21    (20) Beginning July 1, 1999, game or game birds sold at a
22"game breeding and hunting preserve area" as that term is used
23in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-55.
25    (21) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-55.
5    (23) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and other
8items, and replacement parts for these machines. Beginning
9January 1, 2002 and through June 30, 2003, machines and parts
10for machines used in commercial, coin-operated amusement and
11vending business if a use or occupation tax is paid on the
12gross receipts derived from the use of the commercial,
13coin-operated amusement and vending machines. This paragraph
14is exempt from the provisions of Section 3-55.
15    (24) Beginning on the effective date of this amendatory Act
16of the 92nd General Assembly, computers and communications
17equipment utilized for any hospital purpose and equipment used
18in the diagnosis, analysis, or treatment of hospital patients
19sold to a lessor who leases the equipment, under a lease of one
20year or longer executed or in effect at the time of the
21purchase, to a hospital that has been issued an active tax
22exemption identification number by the Department under
23Section 1g of the Retailers' Occupation Tax Act. This paragraph
24is exempt from the provisions of Section 3-55.
25    (25) Beginning on the effective date of this amendatory Act
26of the 92nd General Assembly, personal property sold to a

 

 

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1lessor who leases the property, under a lease of one year or
2longer executed or in effect at the time of the purchase, to a
3governmental body that has been issued an active tax exemption
4identification number by the Department under Section 1g of the
5Retailers' Occupation Tax Act. This paragraph is exempt from
6the provisions of Section 3-55.
7    (26) Beginning on January 1, 2002 and through June 30,
82016, tangible personal property purchased from an Illinois
9retailer by a taxpayer engaged in centralized purchasing
10activities in Illinois who will, upon receipt of the property
11in Illinois, temporarily store the property in Illinois (i) for
12the purpose of subsequently transporting it outside this State
13for use or consumption thereafter solely outside this State or
14(ii) for the purpose of being processed, fabricated, or
15manufactured into, attached to, or incorporated into other
16tangible personal property to be transported outside this State
17and thereafter used or consumed solely outside this State. The
18Director of Revenue shall, pursuant to rules adopted in
19accordance with the Illinois Administrative Procedure Act,
20issue a permit to any taxpayer in good standing with the
21Department who is eligible for the exemption under this
22paragraph (26). The permit issued under this paragraph (26)
23shall authorize the holder, to the extent and in the manner
24specified in the rules adopted under this Act, to purchase
25tangible personal property from a retailer exempt from the
26taxes imposed by this Act. Taxpayers shall maintain all

 

 

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1necessary books and records to substantiate the use and
2consumption of all such tangible personal property outside of
3the State of Illinois.
4    (27) Beginning January 1, 2008, tangible personal property
5used in the construction or maintenance of a community water
6supply, as defined under Section 3.145 of the Environmental
7Protection Act, that is operated by a not-for-profit
8corporation that holds a valid water supply permit issued under
9Title IV of the Environmental Protection Act. This paragraph is
10exempt from the provisions of Section 3-55.
11    (28) Tangible personal property sold to a
12public-facilities corporation, as described in Section
1311-65-10 of the Illinois Municipal Code, for purposes of
14constructing or furnishing a municipal convention hall, but
15only if the legal title to the municipal convention hall is
16transferred to the municipality without any further
17consideration by or on behalf of the municipality at the time
18of the completion of the municipal convention hall or upon the
19retirement or redemption of any bonds or other debt instruments
20issued by the public-facilities corporation in connection with
21the development of the municipal convention hall. This
22exemption includes existing public-facilities corporations as
23provided in Section 11-65-25 of the Illinois Municipal Code.
24This paragraph is exempt from the provisions of Section 3-55.
25    (29) Beginning January 1, 2010, materials, parts,
26equipment, components, and furnishings incorporated into or

 

 

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1upon an aircraft as part of the modification, refurbishment,
2completion, replacement, repair, or maintenance of the
3aircraft. This exemption includes consumable supplies used in
4the modification, refurbishment, completion, replacement,
5repair, and maintenance of aircraft, but excludes any
6materials, parts, equipment, components, and consumable
7supplies used in the modification, replacement, repair, and
8maintenance of aircraft engines or power plants, whether such
9engines or power plants are installed or uninstalled upon any
10such aircraft. "Consumable supplies" include, but are not
11limited to, adhesive, tape, sandpaper, general purpose
12lubricants, cleaning solution, latex gloves, and protective
13films. This exemption applies only to the transfer of
14qualifying tangible personal property incident to the
15modification, refurbishment, completion, replacement, repair,
16or maintenance of an aircraft by persons who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part 129
24of the Federal Aviation Regulations. The changes made to this
25paragraph (29) by Public Act 98-534 this amendatory Act of the
2698th General Assembly are declarative of existing law.

 

 

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1    (30) Beginning on July 1, 2014 and until July 1, 2024,
2qualified tangible personal property used in the construction
3or operation of a data center that has been granted a
4Certificate of Exemption by the Department of Commerce and
5Economic Opportunity.
6    The Department of Commerce and Economic Opportunity shall
7grant a Certificate of Exemption under this item (30) if: (i)
8the data center creates and retains at least 30 full-time
9equivalent jobs; (ii) each of those employees is paid at least
10125% of the median wage paid to full-time employees in the
11county where the data center is located, as determined by the
12United States Bureau of Labor Statistics; and (iii) the owner
13or operator of the data center makes a capital investment of at
14least $200,000,000 at the data center within a period of time
15specified by the Department of Commerce and Economic
16Opportunity by rule.
17    For the purposes of this item (30):
18        "Data center" means a building rehabilitated or
19    constructed to house a group of networked server computers
20    in one physical location in order to centralize the
21    storage, management, and dissemination of data and
22    information pertaining to a particular business, taxonomy,
23    or body of knowledge.
24        "Qualified tangible personal property" means
25    electrical systems; cooling systems; emergency generators;
26    hardware or distributed mainframe computers or servers;

 

 

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1    data storage devices; network connectivity equipment;
2    racks; cabinets; raised floor systems; peripheral
3    components or systems; software; mechanical, electrical,
4    or plumbing systems necessary to operate other items of
5    tangible personal property, including fixtures; and
6    component parts of any of the foregoing.
7(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
8eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
9eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
1098-456, eff. 8-16-13; 98-534, eff. 8-23-13; revised 9-9-13.)
 
11    Section 20. The Retailers' Occupation Tax Act is amended by
12changing Section 2-5 as follows:
 
13    (35 ILCS 120/2-5)
14    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
15sale of the following tangible personal property are exempt
16from the tax imposed by this Act:
17    (1) Farm chemicals.
18    (2) Farm machinery and equipment, both new and used,
19including that manufactured on special order, certified by the
20purchaser to be used primarily for production agriculture or
21State or federal agricultural programs, including individual
22replacement parts for the machinery and equipment, including
23machinery and equipment purchased for lease, and including
24implements of husbandry defined in Section 1-130 of the

 

 

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

 

 

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1agricultural chemicals. This item (2) is exempt from the
2provisions of Section 2-70.
3    (3) Until July 1, 2003, distillation machinery and
4equipment, sold as a unit or kit, assembled or installed by the
5retailer, certified by the user to be used only for the
6production of ethyl alcohol that will be used for consumption
7as motor fuel or as a component of motor fuel for the personal
8use of the user, and not subject to sale or resale.
9    (4) Until July 1, 2003 and beginning again September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order or
13purchased for lease, certified by the purchaser to be used
14primarily for graphic arts production. Equipment includes
15chemicals or chemicals acting as catalysts but only if the
16chemicals or chemicals acting as catalysts effect a direct and
17immediate change upon a graphic arts product.
18    (5) A motor vehicle that is used for automobile renting, as
19defined in the Automobile Renting Occupation and Use Tax Act.
20This paragraph is exempt from the provisions of Section 2-70.
21    (6) Personal property sold by a teacher-sponsored student
22organization affiliated with an elementary or secondary school
23located in Illinois.
24    (7) Until July 1, 2003, proceeds of that portion of the
25selling price of a passenger car the sale of which is subject
26to the Replacement Vehicle Tax.

 

 

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1    (8) Personal property sold to an Illinois county fair
2association for use in conducting, operating, or promoting the
3county fair.
4    (9) Personal property sold to a not-for-profit arts or
5cultural organization that establishes, by proof required by
6the Department by rule, that it has received an exemption under
7Section 501(c)(3) of the Internal Revenue Code and that is
8organized and operated primarily for the presentation or
9support of arts or cultural programming, activities, or
10services. These organizations include, but are not limited to,
11music and dramatic arts organizations such as symphony
12orchestras and theatrical groups, arts and cultural service
13organizations, local arts councils, visual arts organizations,
14and media arts organizations. On and after the effective date
15of this amendatory Act of the 92nd General Assembly, however,
16an entity otherwise eligible for this exemption shall not make
17tax-free purchases unless it has an active identification
18number issued by the Department.
19    (10) Personal property sold by a corporation, society,
20association, foundation, institution, or organization, other
21than a limited liability company, that is organized and
22operated as a not-for-profit service enterprise for the benefit
23of persons 65 years of age or older if the personal property
24was not purchased by the enterprise for the purpose of resale
25by the enterprise.
26    (11) Personal property sold to a governmental body, to a

 

 

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1corporation, society, association, foundation, or institution
2organized and operated exclusively for charitable, religious,
3or educational purposes, or to a not-for-profit corporation,
4society, association, foundation, institution, or organization
5that has no compensated officers or employees and that is
6organized and operated primarily for the recreation of persons
755 years of age or older. A limited liability company may
8qualify for the exemption under this paragraph only if the
9limited liability company is organized and operated
10exclusively for educational purposes. On and after July 1,
111987, however, no entity otherwise eligible for this exemption
12shall make tax-free purchases unless it has an active
13identification number issued by the Department.
14    (12) Tangible personal property sold to interstate
15carriers for hire for use as rolling stock moving in interstate
16commerce or to lessors under leases of one year or longer
17executed or in effect at the time of purchase by interstate
18carriers for hire for use as rolling stock moving in interstate
19commerce and equipment operated by a telecommunications
20provider, licensed as a common carrier by the Federal
21Communications Commission, which is permanently installed in
22or affixed to aircraft moving in interstate commerce.
23    (12-5) On and after July 1, 2003 and through June 30, 2004,
24motor vehicles of the second division with a gross vehicle
25weight in excess of 8,000 pounds that are subject to the
26commercial distribution fee imposed under Section 3-815.1 of

 

 

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

 

 

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1other person, whether the materials used in the process are
2owned by the manufacturer or some other person, or whether the
3sale or lease is made apart from or as an incident to the
4seller's engaging in the service occupation of producing
5machines, tools, dies, jigs, patterns, gauges, or other similar
6items of no commercial value on special order for a particular
7purchaser. The exemption provided by this paragraph (14) does
8not include machinery and equipment used in (i) the generation
9of electricity for wholesale or retail sale; (ii) the
10generation or treatment of natural or artificial gas for
11wholesale or retail sale that is delivered to customers through
12pipes, pipelines, or mains; or (iii) the treatment of water for
13wholesale or retail sale that is delivered to customers through
14pipes, pipelines, or mains. The provisions of Public Act 98-583
15this amendatory Act of the 98th General Assembly are
16declaratory of existing law as to the meaning and scope of this
17exemption.
18    (15) Proceeds of mandatory service charges separately
19stated on customers' bills for purchase and consumption of food
20and beverages, to the extent that the proceeds of the service
21charge are in fact turned over as tips or as a substitute for
22tips to the employees who participate directly in preparing,
23serving, hosting or cleaning up the food or beverage function
24with respect to which the service charge is imposed.
25    (16) Petroleum products sold to a purchaser if the seller
26is prohibited by federal law from charging tax to the

 

 

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

 

 

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1photoprocessing machinery and equipment purchased for lease.
2    (21) Coal and aggregate exploration, mining, off-highway
3offhighway hauling, processing, maintenance, and reclamation
4equipment, including replacement parts and equipment, and
5including equipment purchased for lease, but excluding motor
6vehicles required to be registered under the Illinois Vehicle
7Code. The changes made to this Section by Public Act 97-767
8apply on and after July 1, 2003, but no claim for credit or
9refund is allowed on or after August 16, 2013 (the effective
10date of Public Act 98-456) this amendatory Act of the 98th
11General Assembly for such taxes paid during the period
12beginning July 1, 2003 and ending on August 16, 2013 (the
13effective date of Public Act 98-456) this amendatory Act of the
1498th General Assembly.
15    (22) Until June 30, 2013, fuel and petroleum products sold
16to or used by an air carrier, certified by the carrier to be
17used for consumption, shipment, or storage in the conduct of
18its business as an air common carrier, for a flight destined
19for or returning from a location or locations outside the
20United States without regard to previous or subsequent domestic
21stopovers.
22    Beginning July 1, 2013, fuel and petroleum products sold to
23or used by an air carrier, certified by the carrier to be used
24for consumption, shipment, or storage in the conduct of its
25business as an air common carrier, for a flight that (i) is
26engaged in foreign trade or is engaged in trade between the

 

 

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

 

 

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

 

 

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

 

 

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1    "Based in this State" means hangared, stored, or otherwise
2used, excluding post-sale customizations as defined in this
3Section, for 10 or more days in each 12-month period
4immediately following the date of the sale of the aircraft.
5    "Registered in this State" means an aircraft registered
6with the Department of Transportation, Aeronautics Division,
7or titled or registered with the Federal Aviation
8Administration to an address located in this State.
9    This paragraph (25-7) is exempt from the provisions of
10Section 2-70.
11    (26) Semen used for artificial insemination of livestock
12for direct agricultural production.
13    (27) Horses, or interests in horses, registered with and
14meeting the requirements of any of the Arabian Horse Club
15Registry of America, Appaloosa Horse Club, American Quarter
16Horse Association, United States Trotting Association, or
17Jockey Club, as appropriate, used for purposes of breeding or
18racing for prizes. This item (27) is exempt from the provisions
19of Section 2-70, and the exemption provided for under this item
20(27) applies for all periods beginning May 30, 1995, but no
21claim for credit or refund is allowed on or after January 1,
222008 (the effective date of Public Act 95-88) for such taxes
23paid during the period beginning May 30, 2000 and ending on
24January 1, 2008 (the effective date of Public Act 95-88).
25    (28) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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1bridges, sidewalks, waste disposal systems, water and sewer
2line extensions, water distribution and purification
3facilities, storm water drainage and retention facilities, and
4sewage treatment facilities, resulting from a State or
5federally declared disaster in Illinois or bordering Illinois
6when such repairs are initiated on facilities located in the
7declared disaster area within 6 months after the disaster.
8    (32) Beginning July 1, 1999, game or game birds sold at a
9"game breeding and hunting preserve area" as that term is used
10in the Wildlife Code. This paragraph is exempt from the
11provisions of Section 2-70.
12    (33) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the Department
16to be organized and operated exclusively for educational
17purposes. For purposes of this exemption, "a corporation,
18limited liability company, society, association, foundation,
19or institution organized and operated exclusively for
20educational purposes" means all tax-supported public schools,
21private schools that offer systematic instruction in useful
22branches of learning by methods common to public schools and
23that compare favorably in their scope and intensity with the
24course of study presented in tax-supported schools, and
25vocational or technical schools or institutes organized and
26operated exclusively to provide a course of study of not less

 

 

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1than 6 weeks duration and designed to prepare individuals to
2follow a trade or to pursue a manual, technical, mechanical,
3industrial, business, or commercial occupation.
4    (34) Beginning January 1, 2000, personal property,
5including food, purchased through fundraising events for the
6benefit of a public or private elementary or secondary school,
7a group of those schools, or one or more school districts if
8the events are sponsored by an entity recognized by the school
9district that consists primarily of volunteers and includes
10parents and teachers of the school children. This paragraph
11does not apply to fundraising events (i) for the benefit of
12private home instruction or (ii) for which the fundraising
13entity purchases the personal property sold at the events from
14another individual or entity that sold the property for the
15purpose of resale by the fundraising entity and that profits
16from the sale to the fundraising entity. This paragraph is
17exempt from the provisions of Section 2-70.
18    (35) Beginning January 1, 2000 and through December 31,
192001, new or used automatic vending machines that prepare and
20serve hot food and beverages, including coffee, soup, and other
21items, and replacement parts for these machines. Beginning
22January 1, 2002 and through June 30, 2003, machines and parts
23for machines used in commercial, coin-operated amusement and
24vending business if a use or occupation tax is paid on the
25gross receipts derived from the use of the commercial,
26coin-operated amusement and vending machines. This paragraph

 

 

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

 

 

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1governmental body that has been issued an active tax exemption
2identification number by the Department under Section 1g of
3this Act. This paragraph is exempt from the provisions of
4Section 2-70.
5    (38) Beginning on January 1, 2002 and through June 30,
62016, tangible personal property purchased from an Illinois
7retailer by a taxpayer engaged in centralized purchasing
8activities in Illinois who will, upon receipt of the property
9in Illinois, temporarily store the property in Illinois (i) for
10the purpose of subsequently transporting it outside this State
11for use or consumption thereafter solely outside this State or
12(ii) for the purpose of being processed, fabricated, or
13manufactured into, attached to, or incorporated into other
14tangible personal property to be transported outside this State
15and thereafter used or consumed solely outside this State. The
16Director of Revenue shall, pursuant to rules adopted in
17accordance with the Illinois Administrative Procedure Act,
18issue a permit to any taxpayer in good standing with the
19Department who is eligible for the exemption under this
20paragraph (38). The permit issued under this paragraph (38)
21shall authorize the holder, to the extent and in the manner
22specified in the rules adopted under this Act, to purchase
23tangible personal property from a retailer exempt from the
24taxes imposed by this Act. Taxpayers shall maintain all
25necessary books and records to substantiate the use and
26consumption of all such tangible personal property outside of

 

 

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

 

 

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1repair station by the Federal Aviation Administration, (ii)
2have a Class IV Rating, and (iii) conduct operations in
3accordance with Part 145 of the Federal Aviation Regulations.
4The exemption does not include aircraft operated by a
5commercial air carrier providing scheduled passenger air
6service pursuant to authority issued under Part 121 or Part 129
7of the Federal Aviation Regulations. The changes made to this
8paragraph (40) by Public Act 98-534 this amendatory Act of the
998th General Assembly are declarative of existing law.
10    (41) Tangible personal property sold to a
11public-facilities corporation, as described in Section
1211-65-10 of the Illinois Municipal Code, for purposes of
13constructing or furnishing a municipal convention hall, but
14only if the legal title to the municipal convention hall is
15transferred to the municipality without any further
16consideration by or on behalf of the municipality at the time
17of the completion of the municipal convention hall or upon the
18retirement or redemption of any bonds or other debt instruments
19issued by the public-facilities corporation in connection with
20the development of the municipal convention hall. This
21exemption includes existing public-facilities corporations as
22provided in Section 11-65-25 of the Illinois Municipal Code.
23This paragraph is exempt from the provisions of Section 2-70.
24    (42) Beginning on July 1, 2014 and until July 1, 2024,
25qualified tangible personal property used in the construction
26or operation of a data center that has been granted a

 

 

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1Certificate of Exemption by the Department of Commerce and
2Economic Opportunity.
3    The Department of Commerce and Economic Opportunity shall
4grant a Certificate of Exemption under this item (42) if: (i)
5the data center creates and retains at least 30 full-time
6equivalent jobs; (ii) each of those employees is paid at least
7125% of the median wage paid to full-time employees in the
8county where the data center is located, as determined by the
9United States Bureau of Labor Statistics; and (iii) the owner
10or operator of the data center makes a capital investment of at
11least $200,000,000 at the data center within a period of time
12specified by the Department of Commerce and Economic
13Opportunity by rule.
14    For the purposes of this item (42):
15        "Data center" means a building rehabilitated or
16    constructed to house a group of networked server computers
17    in one physical location in order to centralize the
18    storage, management, and dissemination of data and
19    information pertaining to a particular business, taxonomy,
20    or body of knowledge.
21        "Qualified tangible personal property" means
22    electrical systems; cooling systems; emergency generators;
23    hardware or distributed mainframe computers or servers;
24    data storage devices; network connectivity equipment;
25    racks; cabinets; raised floor systems; peripheral
26    components or systems; software; mechanical, electrical,

 

 

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1    or plumbing systems necessary to operate other items of
2    tangible personal property, including fixtures; and
3    component parts of any of the foregoing.
4(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
5eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
6eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
798-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
81-1-14; 98-583, eff. 1-1-14; revised 9-9-13.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.