Sen. Terry Link

Filed: 4/16/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 504

2    AMENDMENT NO. ______. Amend Senate Bill 504 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois is
6amended by adding Section 605-333 as follows:
 
7    (20 ILCS 605/605-333 new)
8    Sec. 605-333. Data center investment.
9    (a) The Department shall issue certificates of exemption
10from the Retailers' Occupation Tax Act, the Use Tax Act, the
11Service Use Tax Act, the Service Occupation Tax Act, and the
12Electricity Excise Tax Act to qualifying new or existing
13Illinois data centers.
14    (b) Definitions:
15        For purposes of this Act, "data center" means a
16    building or a series of buildings rehabilitated or

 

 

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1    constructed to house a group of networked server computers
2    in one physical location or several sites in order to
3    centralize the storage, management, and dissemination of
4    data and information.
5        A "qualifying Illinois data center" means a data center
6    that is located in Illinois and which results in either:
7            (1) a capital investment on or after July 1, 2015
8        of at least $15,000,000, collectively, by the data
9        center operator and the tenants of the data center over
10        a period of 48 months; or
11            (2) a new capital investment on or after July 1,
12        2015 of at least $5,000,000 but not more than
13        $15,000,000, collectively, by the data center operator
14        and the tenants of the data center over a period of 48
15        months, in which case the data center will qualify for
16        50% of all exemption amounts; and
17            (3) results in the creation, on or after July 1,
18        2015 and over a period of 48 months, of at least 10
19        full-time or full-time equivalent new jobs by the data
20        center operator and the tenants of the data center,
21        collectively, associated with the operation or
22        maintenance of the data center.
23        "Full-time equivalent job" means a job in which the new
24    employee works for the owner, operator, or tenant of a data
25    center or for a corporation under contract with the owner,
26    operator or tenant of a data center at a rate of at least

 

 

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1    35 hours per week. An owner, operator, or tenant who
2    employs labor or services at a specific site or facility
3    under contract with another may declare one full-time,
4    permanent job for every 1,820 man hours worked per year
5    under that contract. Vacations, paid holidays, and sick
6    time are included in this computation. Overtime is not
7    considered a part of regular hours.
8    (c) Data centers seeking qualification for a facility shall
9apply to the Department in the manner specified by the
10Department. The Department and any qualifying person seeking to
11claim the exemption, including a data center operator on behalf
12of itself and its tenants, must enter into a memorandum of
13understanding that, at a minimum, provides the details for
14determining the amount of capital investment made and the
15number of new jobs created, the timeline for achieving the
16capital investment and new job goals, the repayment obligation
17should those goals not be achieved, and any conditions under
18which repayment by the qualifying data center or data center
19tenant claiming the exemption may be required.
20    (d) In addition, the exemption shall apply to any such
21computer equipment or enabling equipment, software purchased
22or leased to upgrade, supplement, or replace computer equipment
23or enabling software purchased or leased in the initial
24investment. A data center that would have qualified under
25subsection (b) prior to July 1, 2015, may apply for and obtain
26an exemption for subsequent purchases of computer equipment or

 

 

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1enabling software purchased or leased to upgrade, supplement,
2or replace computer equipment or enabling software purchased or
3leased in the original investment that would have qualified
4under subsection (b).
5    (e) Beginning July 15, 2016, and each year thereafter until
6July 1, 2026, the Department shall annually compile a report on
7the outcomes and effectiveness of this Section.
 
8    Section 10. The Use Tax Act is amended by changing Section
93-5 as follows:
 
10    (35 ILCS 105/3-5)
11    Sec. 3-5. Exemptions. Use of the following tangible
12personal property is exempt from the tax imposed by this Act:
13    (1) Personal property purchased from a corporation,
14society, association, foundation, institution, or
15organization, other than a limited liability company, that is
16organized and operated as a not-for-profit service enterprise
17for the benefit of persons 65 years of age or older if the
18personal property was not purchased by the enterprise for the
19purpose of resale by the enterprise.
20    (2) Personal property purchased by a not-for-profit
21Illinois county fair association for use in conducting,
22operating, or promoting the county fair.
23    (3) Personal property purchased by a not-for-profit arts or
24cultural organization that establishes, by proof required by

 

 

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1the Department by rule, that it has received an exemption under
2Section 501(c)(3) of the Internal Revenue Code and that is
3organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after the effective date
10of this amendatory Act of the 92nd General Assembly, however,
11an entity otherwise eligible for this exemption shall not make
12tax-free purchases unless it has an active identification
13number issued by the Department.
14    (4) Personal property purchased by a governmental body, by
15a corporation, society, association, foundation, or
16institution organized and operated exclusively for charitable,
17religious, or educational purposes, or by a not-for-profit
18corporation, society, association, foundation, institution, or
19organization that has no compensated officers or employees and
20that is organized and operated primarily for the recreation of
21persons 55 years of age or older. A limited liability company
22may qualify for the exemption under this paragraph only if the
23limited liability company is organized and operated
24exclusively for educational purposes. On and after July 1,
251987, however, no entity otherwise eligible for this exemption
26shall make tax-free purchases unless it has an active exemption

 

 

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1identification number issued by the Department.
2    (5) Until July 1, 2003, a passenger car that is a
3replacement vehicle to the extent that the purchase price of
4the car is subject to the Replacement Vehicle Tax.
5    (6) Until July 1, 2003 and beginning again on September 1,
62004 through August 30, 2014, graphic arts machinery and
7equipment, including repair and replacement parts, both new and
8used, and including that manufactured on special order,
9certified by the purchaser to be used primarily for graphic
10arts production, and including machinery and equipment
11purchased for lease. Equipment includes chemicals or chemicals
12acting as catalysts but only if the chemicals or chemicals
13acting as catalysts effect a direct and immediate change upon a
14graphic arts product.
15    (7) Farm chemicals.
16    (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26    (11) Farm machinery and equipment, both new and used,

 

 

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

 

 

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

 

 

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

 

 

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1changes made to this Section by Public Act 97-767 apply on and
2after July 1, 2003, but no claim for credit or refund is
3allowed on or after August 16, 2013 (the effective date of
4Public Act 98-456) for such taxes paid during the period
5beginning July 1, 2003 and ending on August 16, 2013 (the
6effective date of Public Act 98-456).
7    (17) Until July 1, 2003, distillation machinery and
8equipment, sold as a unit or kit, assembled or installed by the
9retailer, certified by the user to be used only for the
10production of ethyl alcohol that will be used for consumption
11as motor fuel or as a component of motor fuel for the personal
12use of the user, and not subject to sale or resale.
13    (18) Manufacturing and assembling machinery and equipment
14used primarily in the process of manufacturing or assembling
15tangible personal property for wholesale or retail sale or
16lease, whether that sale or lease is made directly by the
17manufacturer or by some other person, whether the materials
18used in the process are owned by the manufacturer or some other
19person, or whether that sale or lease is made apart from or as
20an incident to the seller's engaging in the service occupation
21of producing machines, tools, dies, jigs, patterns, gauges, or
22other similar items of no commercial value on special order for
23a particular purchaser. The exemption provided by this
24paragraph (18) does not include machinery and equipment used in
25(i) the generation of electricity for wholesale or retail sale;
26(ii) the generation or treatment of natural or artificial gas

 

 

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1for wholesale or retail sale that is delivered to customers
2through pipes, pipelines, or mains; or (iii) the treatment of
3water for wholesale or retail sale that is delivered to
4customers through pipes, pipelines, or mains. The provisions of
5Public Act 98-583 are declaratory of existing law as to the
6meaning and scope 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 are declarative of existing
15law.
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, 2015 and until July 1, 2020,
5qualified tangible personal property used in the construction
6or operation of a new or existing data center that has been
7granted a certificate of exemption by the Department of
8Commerce and Economic Opportunity under Section 605-333 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois, whether that tangible
11personal property is purchased by the owner of the data center
12or by a contractor, subcontractor, or tenant of the owner.
13    For the purposes of this item (37):
14        "Data Center" has the meaning ascribed to that term in
15    Section 605-333 of the Department of Commerce and Economic
16    Opportunity Law of the Civil Administrative Code of
17    Illinois.
18        "Qualified tangible personal property" means
19    electrical systems and equipment; mechanical systems and
20    equipment; emergency generators; hardware or distributed
21    computers or servers; data storage devices; network
22    connectivity equipment; racks; cabinets; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems necessary to
25    operate other items of tangible personal property,
26    including fixtures; and component parts of any of the

 

 

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1    foregoing, including installation, maintenance, repair,
2    refurbishment, and replacement of qualified tangible
3    personal property. The term "qualified tangible personal
4    property also include building materials physically
5    incorporated in to the qualifying data center. To document
6    the exemption allowed under this Section, the retailer must
7    obtain from the purchaser a copy of the Certificate of
8    Eligibility for Sales Tax Exemption issued by the Illinois
9    Department of Commerce and Economic Opportunity.
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;
1498-756, eff. 7-16-14.)
 
15    Section 15. 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

 

 

09900SB0504sam001- 23 -LRB099 03064 HLH 34142 a

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

 

 

09900SB0504sam001- 24 -LRB099 03064 HLH 34142 a

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

 

 

09900SB0504sam001- 25 -LRB099 03064 HLH 34142 a

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

 

 

09900SB0504sam001- 27 -LRB099 03064 HLH 34142 a

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
10hauling, processing, maintenance, and reclamation equipment,
11including replacement parts and equipment, and including
12equipment purchased for lease, but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code. The
14changes made to this Section by Public Act 97-767 apply on and
15after July 1, 2003, but no claim for credit or refund is
16allowed on or after August 16, 2013 (the effective date of
17Public Act 98-456) for such taxes paid during the period
18beginning July 1, 2003 and ending on August 16, 2013 (the
19effective date of Public Act 98-456).
20    (13) Semen used for artificial insemination of livestock
21for direct agricultural production.
22    (14) Horses, or interests in horses, registered with and
23meeting the requirements of any of the Arabian Horse Club
24Registry of America, Appaloosa Horse Club, American Quarter
25Horse Association, United States Trotting Association, or
26Jockey Club, as appropriate, used for purposes of breeding or

 

 

09900SB0504sam001- 28 -LRB099 03064 HLH 34142 a

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

 

 

09900SB0504sam001- 29 -LRB099 03064 HLH 34142 a

1from the lessee, the lessee shall have a legal right to claim a
2refund of that amount from the lessor. If, however, that amount
3is not refunded to the lessee for any reason, the lessor is
4liable to pay that amount to the Department.
5    (16) Personal property purchased by a lessor who leases the
6property, under a lease of one year or longer executed or in
7effect at the time the lessor would otherwise be subject to the
8tax imposed by this Act, to a governmental body that has been
9issued an active tax exemption identification number by the
10Department under Section 1g of the Retailers' Occupation Tax
11Act. If the property is leased in a manner that does not
12qualify for this exemption or is used in any other non-exempt
13manner, the lessor shall be liable for the tax imposed under
14this Act or the Use Tax Act, as the case may be, based on the
15fair market value of the property at the time the
16non-qualifying use occurs. No lessor shall collect or attempt
17to collect an amount (however designated) that purports to
18reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid by
20the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that amount
23is not refunded to the lessee for any reason, the lessor is
24liable to pay that amount to the Department.
25    (17) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

09900SB0504sam001- 30 -LRB099 03064 HLH 34142 a

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    (18) 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    (19) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-75.
25    (20) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

09900SB0504sam001- 31 -LRB099 03064 HLH 34142 a

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    (21) 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

 

 

09900SB0504sam001- 32 -LRB099 03064 HLH 34142 a

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 3-75.
5    (22) 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 3-75.
15    (23) Beginning August 23, 2001 and through June 30, 2016,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages, soft
18drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the ID/DD Community Care Act or the Specialized Mental

 

 

09900SB0504sam001- 33 -LRB099 03064 HLH 34142 a

1Health Rehabilitation Act of 2013.
2    (24) Beginning on the effective date of this amendatory Act
3of the 92nd General Assembly, computers and communications
4equipment utilized for any hospital purpose and equipment used
5in the diagnosis, analysis, or treatment of hospital patients
6purchased by a lessor who leases the equipment, under a lease
7of one year or longer executed or in effect at the time the
8lessor would otherwise be subject to the tax imposed by this
9Act, to a hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. If the equipment is leased in a
12manner that does not qualify for this exemption or is used in
13any other nonexempt manner, the lessor shall be liable for the
14tax imposed under this Act or the Use Tax Act, as the case may
15be, based on the fair market value of the property at the time
16the nonqualifying use occurs. No lessor shall collect or
17attempt to collect an amount (however designated) that purports
18to reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid by
20the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that amount
23is not refunded to the lessee for any reason, the lessor is
24liable to pay that amount to the Department. This paragraph is
25exempt from the provisions of Section 3-75.
26    (25) Beginning on the effective date of this amendatory Act

 

 

09900SB0504sam001- 34 -LRB099 03064 HLH 34142 a

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

 

 

09900SB0504sam001- 35 -LRB099 03064 HLH 34142 a

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

 

 

09900SB0504sam001- 36 -LRB099 03064 HLH 34142 a

1service pursuant to authority issued under Part 121 or Part 129
2of the Federal Aviation Regulations. The changes made to this
3paragraph (27) by Public Act 98-534 are declarative of existing
4law.
5    (28) Tangible personal property purchased by a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt instruments
14issued by the public-facilities corporation in connection with
15the development of the municipal convention hall. This
16exemption includes existing public-facilities corporations as
17provided in Section 11-65-25 of the Illinois Municipal Code.
18This paragraph is exempt from the provisions of Section 3-75.
19    (29) Beginning on July 1, 2015 and until July 1, 2020,
20qualified tangible personal property used in the construction
21or operation of a new or existing data center that has been
22granted a certificate of exemption by the Department of
23Commerce and Economic Opportunity under Section 605-333 of the
24Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois, whether that tangible
26personal property is purchased by the owner of the data center

 

 

09900SB0504sam001- 37 -LRB099 03064 HLH 34142 a

1or by a contractor, subcontractor, or tenant of the owner.
2    For the purposes of this item (29):
3        "Data Center" has the meaning ascribed to that term in
4    Section 605-333 of the Department of Commerce and Economic
5    Opportunity Law of the Civil Administrative Code of
6    Illinois.
7        "Qualified tangible personal property" means
8    electrical systems and equipment; mechanical systems and
9    equipment; emergency generators; hardware or distributed
10    computers or servers; data storage devices; network
11    connectivity equipment; racks; cabinets; raised floor
12    systems; peripheral components or systems; software;
13    mechanical, electrical, or plumbing systems necessary to
14    operate other items of tangible personal property,
15    including fixtures; and component parts of any of the
16    foregoing, including installation, maintenance, repair,
17    refurbishment, and replacement of qualified tangible
18    personal property. The term "qualified tangible personal
19    property also include building materials physically
20    incorporated in to the qualifying data center. To document
21    the exemption allowed under this Section, the retailer must
22    obtain from the purchaser a copy of the Certificate of
23    Eligibility for Sales Tax Exemption issued by the Illinois
24    Department of Commerce and Economic Opportunity.
25(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-431,
26eff. 8-16-11; 97-636, eff. 6-1-12; 97-767, eff. 7-9-12; 98-104,

 

 

09900SB0504sam001- 38 -LRB099 03064 HLH 34142 a

1eff. 7-22-13; 98-422, eff. 8-16-13; 98-456, eff. 8-16-13;
298-534, eff. 8-23-13; 98-756, eff. 7-16-14.)
 
3    Section 20. The Service Occupation Tax Act is amended by
4changing Section 3-5 as follows:
 
5    (35 ILCS 115/3-5)
6    Sec. 3-5. Exemptions. The following tangible personal
7property is exempt from the tax imposed by this Act:
8    (1) Personal property sold by a corporation, society,
9association, foundation, institution, or organization, other
10than a limited liability company, that is organized and
11operated as a not-for-profit service enterprise for the benefit
12of persons 65 years of age or older if the personal property
13was not purchased by the enterprise for the purpose of resale
14by the enterprise.
15    (2) Personal property purchased by a not-for-profit
16Illinois county fair association for use in conducting,
17operating, or promoting the county fair.
18    (3) Personal property purchased by any not-for-profit arts
19or cultural organization that establishes, by proof required by
20the Department by rule, that it has received an exemption under
21Section 501(c)(3) of the Internal Revenue Code and that is
22organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

09900SB0504sam001- 39 -LRB099 03064 HLH 34142 a

1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after the effective date
5of this amendatory Act of the 92nd General Assembly, however,
6an entity otherwise eligible for this exemption shall not make
7tax-free purchases unless it has an active identification
8number issued by the Department.
9    (4) Legal tender, currency, medallions, or gold or silver
10coinage issued by the State of Illinois, the government of the
11United States of America, or the government of any foreign
12country, and bullion.
13    (5) Until July 1, 2003 and beginning again on September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product.
22    (6) Personal property sold by a teacher-sponsored student
23organization affiliated with an elementary or secondary school
24located in Illinois.
25    (7) Farm machinery and equipment, both new and used,
26including that manufactured on special order, certified by the

 

 

09900SB0504sam001- 40 -LRB099 03064 HLH 34142 a

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

 

 

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

 

 

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1food and beverages, to the extent that the proceeds of the
2service charge are in fact turned over as tips or as a
3substitute for tips to the employees who participate directly
4in preparing, serving, hosting or cleaning up the food or
5beverage function with respect to which the service charge is
6imposed.
7    (10) Until July 1, 2003, oil field exploration, drilling,
8and production equipment, including (i) rigs and parts of rigs,
9rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
10tubular goods, including casing and drill strings, (iii) pumps
11and pump-jack units, (iv) storage tanks and flow lines, (v) any
12individual replacement part for oil field exploration,
13drilling, and production equipment, and (vi) machinery and
14equipment purchased for lease; but excluding motor vehicles
15required to be registered under the Illinois Vehicle Code.
16    (11) Photoprocessing machinery and equipment, including
17repair and replacement parts, both new and used, including that
18manufactured on special order, certified by the purchaser to be
19used primarily for photoprocessing, and including
20photoprocessing machinery and equipment purchased for lease.
21    (12) Coal and aggregate exploration, mining, off-highway
22hauling, processing, maintenance, and reclamation equipment,
23including replacement parts and equipment, and including
24equipment purchased for lease, but excluding motor vehicles
25required to be registered under the Illinois Vehicle Code. The
26changes made to this Section by Public Act 97-767 apply on and

 

 

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1after July 1, 2003, but no claim for credit or refund is
2allowed on or after August 16, 2013 (the effective date of
3Public Act 98-456) for such taxes paid during the period
4beginning July 1, 2003 and ending on August 16, 2013 (the
5effective date of Public Act 98-456).
6    (13) Beginning January 1, 1992 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 non-prescription 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    (14) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (15) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (15) is exempt from the provisions

 

 

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1of Section 3-55, and the exemption provided for under this item
2(15) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 (the effective date of Public Act 95-88) for such taxes
5paid during the period beginning May 30, 2000 and ending on
6January 1, 2008 (the effective date of Public Act 95-88).
7    (16) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients sold to a lessor
10who leases the equipment, under a lease of one year or longer
11executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act.
15    (17) Personal property sold to a lessor who leases the
16property, under a lease of one year or longer executed or in
17effect at the time of the purchase, to a governmental body that
18has been issued an active tax exemption identification number
19by the Department under Section 1g of the Retailers' Occupation
20Tax Act.
21    (18) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is donated for
24disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

 

 

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (19) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in the
8performance of infrastructure repairs in this State, including
9but not limited to municipal roads and streets, access roads,
10bridges, sidewalks, waste disposal systems, water and sewer
11line extensions, water distribution and purification
12facilities, storm water drainage and retention facilities, and
13sewage treatment facilities, resulting from a State or
14federally declared disaster in Illinois or bordering Illinois
15when such repairs are initiated on facilities located in the
16declared disaster area within 6 months after the disaster.
17    (20) Beginning July 1, 1999, game or game birds sold at a
18"game breeding and hunting preserve area" as that term is used
19in the Wildlife Code. This paragraph is exempt from the
20provisions of Section 3-55.
21    (21) A motor vehicle, as that term is defined in Section
221-146 of the Illinois Vehicle Code, that is donated to a
23corporation, limited liability company, society, association,
24foundation, or institution that is determined by the Department
25to be organized and operated exclusively for educational
26purposes. For purposes of this exemption, "a corporation,

 

 

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1limited liability company, society, association, foundation,
2or institution organized and operated exclusively for
3educational purposes" means all tax-supported public schools,
4private schools that offer systematic instruction in useful
5branches of learning by methods common to public schools and
6that compare favorably in their scope and intensity with the
7course of study presented in tax-supported schools, and
8vocational or technical schools or institutes organized and
9operated exclusively to provide a course of study of not less
10than 6 weeks duration and designed to prepare individuals to
11follow a trade or to pursue a manual, technical, mechanical,
12industrial, business, or commercial occupation.
13    (22) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-55.

 

 

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1    (23) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and other
4items, and replacement parts for these machines. Beginning
5January 1, 2002 and through June 30, 2003, machines and parts
6for machines used in commercial, coin-operated amusement and
7vending business if a use or occupation tax is paid on the
8gross receipts derived from the use of the commercial,
9coin-operated amusement and vending machines. This paragraph
10is exempt from the provisions of Section 3-55.
11    (24) Beginning on the effective date of this amendatory Act
12of the 92nd General Assembly, computers and communications
13equipment utilized for any hospital purpose and equipment used
14in the diagnosis, analysis, or treatment of hospital patients
15sold to a lessor who leases the equipment, under a lease of one
16year or longer executed or in effect at the time of the
17purchase, to a hospital that has been issued an active tax
18exemption identification number by the Department under
19Section 1g of the Retailers' Occupation Tax Act. This paragraph
20is exempt from the provisions of Section 3-55.
21    (25) Beginning on the effective date of this amendatory Act
22of the 92nd General Assembly, personal property sold to a
23lessor who leases the property, under a lease of one year or
24longer executed or in effect at the time of the purchase, to a
25governmental body that has been issued an active tax exemption
26identification number by the Department under Section 1g of the

 

 

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1Retailers' Occupation Tax Act. This paragraph is exempt from
2the provisions of Section 3-55.
3    (26) Beginning on January 1, 2002 and through June 30,
42016, tangible personal property purchased from an Illinois
5retailer by a taxpayer engaged in centralized purchasing
6activities in Illinois who will, upon receipt of the property
7in Illinois, temporarily store the property in Illinois (i) for
8the purpose of subsequently transporting it outside this State
9for use or consumption thereafter solely outside this State or
10(ii) for the purpose of being processed, fabricated, or
11manufactured into, attached to, or incorporated into other
12tangible personal property to be transported outside this State
13and thereafter used or consumed solely outside this State. The
14Director of Revenue shall, pursuant to rules adopted in
15accordance with the Illinois Administrative Procedure Act,
16issue a permit to any taxpayer in good standing with the
17Department who is eligible for the exemption under this
18paragraph (26). The permit issued under this paragraph (26)
19shall authorize the holder, to the extent and in the manner
20specified in the rules adopted under this Act, to purchase
21tangible personal property from a retailer exempt from the
22taxes imposed by this Act. Taxpayers shall maintain all
23necessary books and records to substantiate the use and
24consumption of all such tangible personal property outside of
25the State of Illinois.
26    (27) Beginning January 1, 2008, tangible personal property

 

 

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1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued under
5Title IV of the Environmental Protection Act. This paragraph is
6exempt from the provisions of Section 3-55.
7    (28) Tangible personal property sold to 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 3-55.
21    (29) Beginning January 1, 2010, materials, parts,
22equipment, components, and furnishings incorporated into or
23upon an aircraft as part of the modification, refurbishment,
24completion, replacement, repair, or maintenance of the
25aircraft. This exemption includes consumable supplies used in
26the modification, refurbishment, completion, replacement,

 

 

09900SB0504sam001- 50 -LRB099 03064 HLH 34142 a

1repair, and maintenance of aircraft, but excludes any
2materials, parts, equipment, components, and consumable
3supplies used in the modification, replacement, repair, and
4maintenance of aircraft engines or power plants, whether such
5engines or power plants are installed or uninstalled upon any
6such aircraft. "Consumable supplies" include, but are not
7limited to, adhesive, tape, sandpaper, general purpose
8lubricants, cleaning solution, latex gloves, and protective
9films. This exemption applies only to the transfer of
10qualifying tangible personal property incident to the
11modification, refurbishment, completion, replacement, repair,
12or maintenance of an aircraft by persons who (i) hold an Air
13Agency Certificate and are empowered to operate an approved
14repair station by the Federal Aviation Administration, (ii)
15have a Class IV Rating, and (iii) conduct operations in
16accordance with Part 145 of the Federal Aviation Regulations.
17The exemption does not include aircraft operated by a
18commercial air carrier providing scheduled passenger air
19service pursuant to authority issued under Part 121 or Part 129
20of the Federal Aviation Regulations. The changes made to this
21paragraph (29) by Public Act 98-534 are declarative of existing
22law.
23    (30) Beginning on July 1, 2015 and until July 1, 2020,
24qualified tangible personal property used in the construction
25or operation of a new or existing data center that has been
26granted a certificate of exemption by the Department of

 

 

09900SB0504sam001- 51 -LRB099 03064 HLH 34142 a

1Commerce and Economic Opportunity under Section 605-333 of the
2Department of Commerce and Economic Opportunity Law of the
3Civil Administrative Code of Illinois, whether that tangible
4personal property is purchased by the owner of the data center
5or by a contractor, subcontractor, or tenant of the owner.
6    For the purposes of this item (30):
7        "Data Center" has the meaning ascribed to that term in
8    Section 605-333 of the Department of Commerce and Economic
9    Opportunity Law of the Civil Administrative Code of
10    Illinois.
11        "Qualified tangible personal property" means
12    electrical systems and equipment; mechanical systems and
13    equipment; emergency generators; hardware or distributed
14    computers or servers; data storage devices; network
15    connectivity equipment; racks; cabinets; raised floor
16    systems; peripheral components or systems; software;
17    mechanical, electrical, or plumbing systems necessary to
18    operate other items of tangible personal property,
19    including fixtures; and component parts of any of the
20    foregoing, including installation, maintenance, repair,
21    refurbishment, and replacement of qualified tangible
22    personal property. The term "qualified tangible personal
23    property also include building materials physically
24    incorporated in to the qualifying data center. To document
25    the exemption allowed under this Section, the retailer must
26    obtain from the purchaser a copy of the Certificate of

 

 

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1    Eligibility for Sales Tax Exemption issued by the Illinois
2    Department of Commerce and Economic Opportunity.
3(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
4eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
5eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
698-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff.
77-16-14.)
 
8    Section 25. The Retailers' Occupation Tax Act is amended by
9changing Section 2-5 as follows:
 
10    (35 ILCS 120/2-5)
11    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
12sale of the following tangible personal property are exempt
13from the tax imposed by this Act:
14    (1) Farm chemicals.
15    (2) Farm machinery and equipment, both new and used,
16including that manufactured on special order, certified by the
17purchaser to be used primarily for production agriculture or
18State or federal agricultural programs, including individual
19replacement parts for the machinery and equipment, including
20machinery and equipment purchased for lease, and including
21implements of husbandry defined in Section 1-130 of the
22Illinois Vehicle Code, farm machinery and agricultural
23chemical and fertilizer spreaders, and nurse wagons required to
24be registered under Section 3-809 of the Illinois Vehicle Code,

 

 

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1but excluding other motor vehicles required to be registered
2under the Illinois Vehicle Code. Horticultural polyhouses or
3hoop houses used for propagating, growing, or overwintering
4plants shall be considered farm machinery and equipment under
5this item (2). Agricultural chemical tender tanks and dry boxes
6shall include units sold separately from a motor vehicle
7required to be licensed and units sold mounted on a motor
8vehicle required to be licensed, if the selling price of the
9tender is separately stated.
10    Farm machinery and equipment shall include precision
11farming equipment that is installed or purchased to be
12installed on farm machinery and equipment including, but not
13limited to, tractors, harvesters, sprayers, planters, seeders,
14or spreaders. Precision farming equipment includes, but is not
15limited to, soil testing sensors, computers, monitors,
16software, global positioning and mapping systems, and other
17such equipment.
18    Farm machinery and equipment also includes computers,
19sensors, software, and related equipment used primarily in the
20computer-assisted operation of production agriculture
21facilities, equipment, and activities such as, but not limited
22to, the collection, monitoring, and correlation of animal and
23crop data for the purpose of formulating animal diets and
24agricultural chemicals. This item (2) is exempt from the
25provisions of Section 2-70.
26    (3) Until July 1, 2003, distillation machinery and

 

 

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1equipment, sold as a unit or kit, assembled or installed by the
2retailer, certified by the user to be used only for the
3production of ethyl alcohol that will be used for consumption
4as motor fuel or as a component of motor fuel for the personal
5use of the user, and not subject to sale or resale.
6    (4) Until July 1, 2003 and beginning again September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product.
15    (5) A motor vehicle that is used for automobile renting, as
16defined in the Automobile Renting Occupation and Use Tax Act.
17This paragraph is exempt from the provisions of Section 2-70.
18    (6) Personal property sold by a teacher-sponsored student
19organization affiliated with an elementary or secondary school
20located in Illinois.
21    (7) Until July 1, 2003, proceeds of that portion of the
22selling price of a passenger car the sale of which is subject
23to the Replacement Vehicle Tax.
24    (8) Personal property sold to an Illinois county fair
25association for use in conducting, operating, or promoting the
26county fair.

 

 

09900SB0504sam001- 55 -LRB099 03064 HLH 34142 a

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

 

 

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1society, association, foundation, institution, or organization
2that has no compensated officers or employees and that is
3organized and operated primarily for the recreation of persons
455 years of age or older. A limited liability company may
5qualify for the exemption under this paragraph only if the
6limited liability company is organized and operated
7exclusively for educational purposes. On and after July 1,
81987, however, no entity otherwise eligible for this exemption
9shall make tax-free purchases unless it has an active
10identification number issued by the Department.
11    (12) Tangible personal property sold to interstate
12carriers for hire for use as rolling stock moving in interstate
13commerce or to lessors under leases of one year or longer
14executed or in effect at the time of purchase by interstate
15carriers for hire for use as rolling stock moving in interstate
16commerce and equipment operated by a telecommunications
17provider, licensed as a common carrier by the Federal
18Communications Commission, which is permanently installed in
19or affixed to aircraft moving in interstate commerce.
20    (12-5) On and after July 1, 2003 and through June 30, 2004,
21motor vehicles of the second division with a gross vehicle
22weight in excess of 8,000 pounds that are subject to the
23commercial distribution fee imposed under Section 3-815.1 of
24the Illinois Vehicle Code. Beginning on July 1, 2004 and
25through June 30, 2005, the use in this State of motor vehicles
26of the second division: (i) with a gross vehicle weight rating

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1by a florist who is located outside Illinois, but who has a
2florist located in Illinois deliver the property to the
3purchaser or the purchaser's donee in Illinois.
4    (24) Fuel consumed or used in the operation of ships,
5barges, or vessels that are used primarily in or for the
6transportation of property or the conveyance of persons for
7hire on rivers bordering on this State if the fuel is delivered
8by the seller to the purchaser's barge, ship, or vessel while
9it is afloat upon that bordering river.
10    (25) Except as provided in item (25-5) of this Section, a
11motor vehicle sold in this State to a nonresident even though
12the motor vehicle is delivered to the nonresident in this
13State, if the motor vehicle is not to be titled in this State,
14and if a drive-away permit is issued to the motor vehicle as
15provided in Section 3-603 of the Illinois Vehicle Code or if
16the nonresident purchaser has vehicle registration plates to
17transfer to the motor vehicle upon returning to his or her home
18state. The issuance of the drive-away permit or having the
19out-of-state registration plates to be transferred is prima
20facie evidence that the motor vehicle will not be titled in
21this State.
22    (25-5) The exemption under item (25) does not apply if the
23state in which the motor vehicle will be titled does not allow
24a reciprocal exemption for a motor vehicle sold and delivered
25in that state to an Illinois resident but titled in Illinois.
26The tax collected under this Act on the sale of a motor vehicle

 

 

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1in this State to a resident of another state that does not
2allow a reciprocal exemption shall be imposed at a rate equal
3to the state's rate of tax on taxable property in the state in
4which the purchaser is a resident, except that the tax shall
5not exceed the tax that would otherwise be imposed under this
6Act. At the time of the sale, the purchaser shall execute a
7statement, signed under penalty of perjury, of his or her
8intent to title the vehicle in the state in which the purchaser
9is a resident within 30 days after the sale and of the fact of
10the payment to the State of Illinois of tax in an amount
11equivalent to the state's rate of tax on taxable property in
12his or her state of residence and shall submit the statement to
13the appropriate tax collection agency in his or her state of
14residence. In addition, the retailer must retain a signed copy
15of the statement in his or her records. Nothing in this item
16shall be construed to require the removal of the vehicle from
17this state following the filing of an intent to title the
18vehicle in the purchaser's state of residence if the purchaser
19titles the vehicle in his or her state of residence within 30
20days after the date of sale. The tax collected under this Act
21in accordance with this item (25-5) shall be proportionately
22distributed as if the tax were collected at the 6.25% general
23rate imposed under this Act.
24    (25-7) Beginning on July 1, 2007, no tax is imposed under
25this Act on the sale of an aircraft, as defined in Section 3 of
26the Illinois Aeronautics Act, if all of the following

 

 

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

 

 

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1or titled or registered with the Federal Aviation
2Administration to an address located in this State.
3    This paragraph (25-7) is exempt from the provisions of
4Section 2-70.
5    (26) Semen used for artificial insemination of livestock
6for direct agricultural production.
7    (27) Horses, or interests in horses, registered with and
8meeting the requirements of any of the Arabian Horse Club
9Registry of America, Appaloosa Horse Club, American Quarter
10Horse Association, United States Trotting Association, or
11Jockey Club, as appropriate, used for purposes of breeding or
12racing for prizes. This item (27) is exempt from the provisions
13of Section 2-70, and the exemption provided for under this item
14(27) applies for all periods beginning May 30, 1995, but no
15claim for credit or refund is allowed on or after January 1,
162008 (the effective date of Public Act 95-88) for such taxes
17paid during the period beginning May 30, 2000 and ending on
18January 1, 2008 (the effective date of Public Act 95-88).
19    (28) Computers and communications equipment utilized for
20any hospital purpose and equipment used in the diagnosis,
21analysis, or treatment of hospital patients sold to a lessor
22who leases the equipment, under a lease of one year or longer
23executed or in effect at the time of the purchase, to a
24hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of
26this Act.

 

 

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

 

 

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1declared disaster area within 6 months after the disaster.
2    (32) Beginning July 1, 1999, game or game birds sold at a
3"game breeding and hunting preserve area" as that term is used
4in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 2-70.
6    (33) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the Department
10to be organized and operated exclusively for educational
11purposes. For purposes of this exemption, "a corporation,
12limited liability company, society, association, foundation,
13or institution organized and operated exclusively for
14educational purposes" means all tax-supported public schools,
15private schools that offer systematic instruction in useful
16branches of learning by methods common to public schools and
17that compare favorably in their scope and intensity with the
18course of study presented in tax-supported schools, and
19vocational or technical schools or institutes organized and
20operated exclusively to provide a course of study of not less
21than 6 weeks duration and designed to prepare individuals to
22follow a trade or to pursue a manual, technical, mechanical,
23industrial, business, or commercial occupation.
24    (34) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

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1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 2-70.
12    (35) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and other
15items, and replacement parts for these machines. Beginning
16January 1, 2002 and through June 30, 2003, machines and parts
17for machines used in commercial, coin-operated amusement and
18vending business if a use or occupation tax is paid on the
19gross receipts derived from the use of the commercial,
20coin-operated amusement and vending machines. This paragraph
21is exempt from the provisions of Section 2-70.
22    (35-5) Beginning August 23, 2001 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances, and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, when purchased for use by a person receiving medical
4assistance under Article V of the Illinois Public Aid Code who
5resides in a licensed long-term care facility, as defined in
6the Nursing Home Care Act, or a licensed facility as defined in
7the ID/DD Community Care Act or the Specialized Mental Health
8Rehabilitation Act of 2013.
9    (36) Beginning August 2, 2001, computers and
10communications equipment utilized for any hospital purpose and
11equipment used in the diagnosis, analysis, or treatment of
12hospital patients sold to a lessor who leases the equipment,
13under a lease of one year or longer executed or in effect at
14the time of the purchase, to a hospital that has been issued an
15active tax exemption identification number by the Department
16under Section 1g of this Act. This paragraph is exempt from the
17provisions of Section 2-70.
18    (37) Beginning August 2, 2001, personal property sold to a
19lessor who leases the property, under a lease of one year or
20longer executed or in effect at the time of the purchase, to a
21governmental body that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23this Act. This paragraph is exempt from the provisions of
24Section 2-70.
25    (38) Beginning on January 1, 2002 and through June 30,
262016, tangible personal property purchased from an Illinois

 

 

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

 

 

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1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 2-70.
3    (40) Beginning January 1, 2010, materials, parts,
4equipment, components, and furnishings incorporated into or
5upon an aircraft as part of the modification, refurbishment,
6completion, replacement, repair, or maintenance of the
7aircraft. This exemption includes consumable supplies used in
8the modification, refurbishment, completion, replacement,
9repair, and maintenance of aircraft, but excludes any
10materials, parts, equipment, components, and consumable
11supplies used in the modification, replacement, repair, and
12maintenance of aircraft engines or power plants, whether such
13engines or power plants are installed or uninstalled upon any
14such aircraft. "Consumable supplies" include, but are not
15limited to, adhesive, tape, sandpaper, general purpose
16lubricants, cleaning solution, latex gloves, and protective
17films. This exemption applies only to the sale of qualifying
18tangible personal property to persons who modify, refurbish,
19complete, replace, or maintain an aircraft and who (i) hold an
20Air Agency Certificate and are empowered to operate an approved
21repair station by the Federal Aviation Administration, (ii)
22have a Class IV Rating, and (iii) conduct operations in
23accordance with Part 145 of the Federal Aviation Regulations.
24The exemption does not include aircraft operated by a
25commercial air carrier providing scheduled passenger air
26service pursuant to authority issued under Part 121 or Part 129

 

 

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1of the Federal Aviation Regulations. The changes made to this
2paragraph (40) by Public Act 98-534 are declarative of existing
3law.
4    (41) Tangible personal property sold to a
5public-facilities corporation, as described in Section
611-65-10 of the Illinois Municipal Code, for purposes of
7constructing or furnishing a municipal convention hall, but
8only if the legal title to the municipal convention hall is
9transferred to the municipality without any further
10consideration by or on behalf of the municipality at the time
11of the completion of the municipal convention hall or upon the
12retirement or redemption of any bonds or other debt instruments
13issued by the public-facilities corporation in connection with
14the development of the municipal convention hall. This
15exemption includes existing public-facilities corporations as
16provided in Section 11-65-25 of the Illinois Municipal Code.
17This paragraph is exempt from the provisions of Section 2-70.
18    (42) Beginning on July 1, 2015 and until July 1, 2020,
19qualified tangible personal property used in the construction
20or operation of a new or existing data center that has been
21granted a certificate of exemption by the Department of
22Commerce and Economic Opportunity under Section 605-333 of the
23Department of Commerce and Economic Opportunity Law of the
24Civil Administrative Code of Illinois, whether that tangible
25personal property is purchased by the owner of the data center
26or by a contractor, subcontractor, or tenant of the owner.

 

 

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1    For the purposes of this item (42):
2        "Data Center" has the meaning ascribed to that term in
3    Section 605-333 of the Department of Commerce and Economic
4    Opportunity Law of the Civil Administrative Code of
5    Illinois.
6        "Qualified tangible personal property" means
7    electrical systems and equipment; mechanical systems and
8    equipment; emergency generators; hardware or distributed
9    computers or servers; data storage devices; network
10    connectivity equipment; racks; cabinets; raised floor
11    systems; peripheral components or systems; software;
12    mechanical, electrical, or plumbing systems necessary to
13    operate other items of tangible personal property,
14    including fixtures; and component parts of any of the
15    foregoing, including installation, maintenance, repair,
16    refurbishment, and replacement of qualified tangible
17    personal property. The term "qualified tangible personal
18    property also include building materials physically
19    incorporated in to the qualifying data center. To document
20    the exemption allowed under this Section, the retailer must
21    obtain from the purchaser a copy of the Certificate of
22    Eligibility for Sales Tax Exemption issued by the Illinois
23    Department of Commerce and Economic Opportunity.
24(Source: P.A. 97-38, eff. 6-28-11; 97-73, eff. 6-30-11; 97-227,
25eff. 1-1-12; 97-431, eff. 8-16-11; 97-636, eff. 6-1-12; 97-767,
26eff. 7-9-12; 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;

 

 

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198-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
21-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14.)
 
3    Section 30. The Electricity Excise Tax Law is amended by
4changing Section 2-4 as follows:
 
5    (35 ILCS 640/2-4)
6    Sec. 2-4. Tax imposed.
7    (a) Except as provided in subsection (b), a tax is imposed
8on the privilege of using in this State electricity purchased
9for use or consumption and not for resale, other than by
10municipal corporations owning and operating a local
11transportation system for public service, at the following
12rates per kilowatt-hour delivered to the purchaser:
13        (i) For the first 2000 kilowatt-hours used or consumed
14    in a month: 0.330 cents per kilowatt-hour;
15        (ii) For the next 48,000 kilowatt-hours used or
16    consumed in a month: 0.319 cents per kilowatt-hour;
17        (iii) For the next 50,000 kilowatt-hours used or
18    consumed in a month: 0.303 cents per kilowatt-hour;
19        (iv) For the next 400,000 kilowatt-hours used or
20    consumed in a month: 0.297 cents per kilowatt-hour;
21        (v) For the next 500,000 kilowatt-hours used or
22    consumed in a month: 0.286 cents per kilowatt-hour;
23        (vi) For the next 2,000,000 kilowatt-hours used or
24    consumed in a month: 0.270 cents per kilowatt-hour;

 

 

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1        (vii) For the next 2,000,000 kilowatt-hours used or
2    consumed in a month: 0.254 cents per kilowatt-hour;
3        (viii) For the next 5,000,000 kilowatt-hours used or
4    consumed in a month: 0.233 cents per kilowatt-hour;
5        (ix) For the next 10,000,000 kilowatt-hours used or
6    consumed in a month: 0.207 cents per kilowatt-hour;
7        (x) For all electricity in excess of 20,000,000
8    kilowatt-hours used or consumed in a month: 0.202 cents per
9    kilowatt-hour.
10    Provided, that in lieu of the foregoing rates, the tax is
11imposed on a self-assessing purchaser at the rate of 5.1% of
12the self-assessing purchaser's purchase price for all
13electricity distributed, supplied, furnished, sold,
14transmitted and delivered to the self-assessing purchaser in a
15month.
16    (b) A tax is imposed on the privilege of using in this
17State electricity purchased from a municipal system or electric
18cooperative, as defined in Article XVII of the Public Utilities
19Act, which has not made an election as permitted by either
20Section 17-200 or Section 17-300 of such Act, at the lesser of
210.32 cents per kilowatt hour of all electricity distributed,
22supplied, furnished, sold, transmitted, and delivered by such
23municipal system or electric cooperative to the purchaser or 5%
24of each such purchaser's purchase price for all electricity
25distributed, supplied, furnished, sold, transmitted, and
26delivered by such municipal system or electric cooperative to

 

 

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1the purchaser, whichever is the lower rate as applied to each
2purchaser in each billing period.
3    (c) The tax imposed by this Section 2-4 is not imposed with
4respect to any use of electricity by business enterprises
5certified under Section 9-222.1 or 9-222.1A of the Public
6Utilities Act, as amended, to the extent of such exemption and
7during the time specified by the Department of Commerce and
8Economic Opportunity; or with respect to any transaction in
9interstate commerce, or otherwise, to the extent to which such
10transaction may not, under the Constitution and statutes of the
11United States, be made the subject of taxation by this State.
12    (d) Beginning July 1, 2015 and until July 1, 2020, a
13business enterprise that is certified as a qualifying Illinois
14data center by the Department of Commerce and Economic
15Opportunity under Section 605-333 of the Department of Commerce
16and Economic Opportunity Law of the Civil Administrative Code
17of Illinois is exempt from the tax imposed under this Section.
18The Department of Commerce and Economic Opportunity may adopt
19rules to carry out the provisions of this subsection, including
20procedures for applying for the exemption. The Department of
21Commerce and Economic Opportunity shall notify the Department
22of Revenue of the certification. The Department of Revenue
23shall then notify the public utility of the exemption status of
24the business enterprise. The exemption shall take effect upon
25certification of the qualifying data center.
26(Source: P.A. 94-793, eff. 5-19-06.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".