Illinois General Assembly - Full Text of HB0154
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Full Text of HB0154  102nd General Assembly

HB0154 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0154

 

Introduced 1/22/2021, by Rep. Barbara Hernandez, Margaret Croke and Lindsey LaPointe

 

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

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2020, breast pumps, breast pump collection and storage supplies, and breast pump kits are exempt from the taxes imposed under those Acts. Effective immediately.


LRB102 03886 HLH 13901 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0154LRB102 03886 HLH 13901 b

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

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active
24exemption identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon
11a graphic arts product. Beginning on July 1, 2017, graphic
12arts machinery and equipment is included in the manufacturing
13and assembling machinery and equipment exemption under
14paragraph (18).
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
9to be registered under Section 3-809 of the Illinois Vehicle
10Code, but excluding other motor vehicles required to be
11registered under the Illinois Vehicle Code. Horticultural
12polyhouses or hoop houses used for propagating, growing, or
13overwintering plants shall be considered farm machinery and
14equipment under this item (11). Agricultural chemical tender
15tanks and dry boxes shall include units sold separately from a
16motor vehicle required to be licensed and units sold mounted
17on a motor vehicle required to be licensed if the selling price
18of the tender 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
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business 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
22at least 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
10rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
11pipe and tubular goods, including casing and drill strings,
12(iii) pumps and pump-jack units, (iv) storage tanks and flow
13lines, (v) any individual replacement part for oil field
14exploration, drilling, and production equipment, and (vi)
15machinery and equipment purchased for lease; but excluding
16motor vehicles required to be registered under the Illinois
17Vehicle Code.
18    (15) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including
20that manufactured on special order, certified by the purchaser
21to be used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23    (16) Until July 1, 2023, coal and aggregate exploration,
24mining, off-highway hauling, processing, maintenance, and
25reclamation equipment, including replacement parts and
26equipment, and including equipment purchased for lease, but

 

 

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1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8    (17) Until July 1, 2003, distillation machinery and
9equipment, sold as a unit or kit, assembled or installed by the
10retailer, certified by the user to be used only for the
11production of ethyl alcohol that will be used for consumption
12as motor fuel or as a component of motor fuel for the personal
13use of the user, and not subject to sale or resale.
14    (18) Manufacturing and assembling machinery and equipment
15used primarily in the process of manufacturing or assembling
16tangible personal property for wholesale or retail sale or
17lease, whether that sale or lease is made directly by the
18manufacturer or by some other person, whether the materials
19used in the process are owned by the manufacturer or some other
20person, or whether that sale or lease is made apart from or as
21an incident to the seller's engaging in the service occupation
22of producing machines, tools, dies, jigs, patterns, gauges, or
23other similar items of no commercial value on special order
24for a particular purchaser. The exemption provided by this
25paragraph (18) includes production related tangible personal
26property, as defined in Section 3-50, purchased on or after

 

 

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1July 1, 2019. The exemption provided by this paragraph (18)
2does not include machinery and equipment used in (i) the
3generation of electricity for wholesale or retail sale; (ii)
4the generation or treatment of natural or artificial gas for
5wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions
9of Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption. Beginning on July 1,
112017, the exemption provided by this paragraph (18) includes,
12but is not limited to, graphic arts machinery and equipment,
13as defined in paragraph (6) of this Section.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) 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 (21) is exempt from the

 

 

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1provisions of Section 3-90, and the exemption provided for
2under this item (21) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 for such taxes paid during the period
5beginning May 30, 2000 and ending on January 1, 2008.
6    (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other non-exempt manner, the lessor shall be liable for
17the tax imposed under this Act or the Service Use Tax Act, as
18the case may be, based on the fair market value of the property
19at the time the non-qualifying use occurs. No lessor shall
20collect or attempt to collect an amount (however designated)
21that purports to reimburse that lessor for the tax imposed by
22this Act or the Service Use Tax Act, as the case may be, if the
23tax has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

 

 

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1for any reason, the lessor is liable to pay that amount to the
2Department.
3    (23) Personal property purchased by a lessor who leases
4the property, under a lease of one year or longer executed or
5in effect at the time the lessor would otherwise be subject to
6the tax imposed by this Act, to a governmental body that has
7been issued an active sales tax exemption identification
8number by the Department under Section 1g of the Retailers'
9Occupation Tax Act. If the property is leased in a manner that
10does not qualify for this exemption or used in any other
11non-exempt manner, the lessor shall be liable for the tax
12imposed under this Act or the Service Use Tax Act, as the case
13may be, based on the fair market value of the property at the
14time the non-qualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department.
24    (24) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated

 

 

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (25) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including but not limited to municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (26) 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 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-90.
6    (29) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-90.
16    (30) Beginning January 1, 2001 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19soft drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or in a licensed facility as defined

 

 

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1in the ID/DD Community Care Act, the MC/DD Act, or the
2Specialized Mental Health Rehabilitation Act of 2013.
3    (31) Beginning on August 2, 2001 (the effective date of
4Public Act 92-227), computers and communications equipment
5utilized for any hospital purpose and equipment used in the
6diagnosis, analysis, or treatment of hospital patients
7purchased by a lessor who leases the equipment, under a lease
8of one year or longer executed or in effect at the time the
9lessor would otherwise be subject to the tax imposed by this
10Act, to a hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act. If the equipment is leased
13in a manner that does not qualify for this exemption or is used
14in any other nonexempt manner, the lessor shall be liable for
15the tax imposed under this Act or the Service Use Tax Act, as
16the case may be, based on the fair market value of the property
17at the time the nonqualifying use occurs. No lessor shall
18collect or attempt to collect an amount (however designated)
19that purports to reimburse that lessor for the tax imposed by
20this Act or the Service Use Tax Act, as the case may be, if the
21tax has not been paid by the lessor. If a lessor improperly
22collects any such amount from the lessee, the lessee shall
23have a legal right to claim a refund of that amount from the
24lessor. If, however, that amount is not refunded to the lessee
25for any reason, the lessor is liable to pay that amount to the
26Department. This paragraph is exempt from the provisions of

 

 

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1Section 3-90.
2    (32) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), personal property purchased by a lessor
4who leases the property, under a lease of one year or longer
5executed or in effect at the time the lessor would otherwise be
6subject to the tax imposed by this Act, to a governmental body
7that has been issued an active sales tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the property is leased
10in a manner that does not qualify for this exemption or used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Service Use Tax Act, as the
13case may be, based on the fair market value of the property at
14the time the nonqualifying use occurs. No lessor shall collect
15or attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-90.
25    (33) On and after July 1, 2003 and through June 30, 2004,
26the use in this State of motor vehicles of the second division

 

 

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1with a gross vehicle weight in excess of 8,000 pounds and that
2are subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4July 1, 2004 and through June 30, 2005, the use in this State
5of motor vehicles of the second division: (i) with a gross
6vehicle weight rating in excess of 8,000 pounds; (ii) that are
7subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9are primarily used for commercial purposes. Through June 30,
102005, this exemption applies to repair and replacement parts
11added after the initial purchase of such a motor vehicle if
12that motor vehicle is used in a manner that would qualify for
13the rolling stock exemption otherwise provided for in this
14Act. For purposes of this paragraph, the term "used for
15commercial purposes" means the transportation of persons or
16property in furtherance of any commercial or industrial
17enterprise, whether for-hire or not.
18    (34) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-90.
25    (35) Beginning January 1, 2010 and continuing through
26December 31, 2024, materials, parts, equipment, components,

 

 

HB0154- 17 -LRB102 03886 HLH 13901 b

1and furnishings incorporated into or upon an aircraft as part
2of the modification, refurbishment, completion, replacement,
3repair, or maintenance of the aircraft. This exemption
4includes consumable supplies used in the modification,
5refurbishment, completion, replacement, repair, and
6maintenance of aircraft, but excludes any materials, parts,
7equipment, components, and consumable supplies used in the
8modification, replacement, repair, and maintenance of aircraft
9engines or power plants, whether such engines or power plants
10are installed or uninstalled upon any such aircraft.
11"Consumable supplies" include, but are not limited to,
12adhesive, tape, sandpaper, general purpose lubricants,
13cleaning solution, latex gloves, and protective films. This
14exemption applies only to the use of qualifying tangible
15personal property by persons who modify, refurbish, complete,
16repair, replace, or maintain aircraft and who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part
24129 of the Federal Aviation Regulations. The changes made to
25this paragraph (35) by Public Act 98-534 are declarative of
26existing law. It is the intent of the General Assembly that the

 

 

HB0154- 18 -LRB102 03886 HLH 13901 b

1exemption under this paragraph (35) applies continuously from
2January 1, 2010 through December 31, 2024; however, no claim
3for credit or refund is allowed for taxes paid as a result of
4the disallowance of this exemption on or after January 1, 2015
5and prior to the effective date of this amendatory Act of the
6101st General Assembly.
7    (36) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-90.
22    (37) Beginning January 1, 2017, menstrual pads, tampons,
23and menstrual cups.
24    (38) Merchandise that is subject to the Rental Purchase
25Agreement Occupation and Use Tax. The purchaser must certify
26that the item is purchased to be rented subject to a rental

 

 

HB0154- 19 -LRB102 03886 HLH 13901 b

1purchase agreement, as defined in the Rental Purchase
2Agreement Act, and provide proof of registration under the
3Rental Purchase Agreement Occupation and Use Tax Act. This
4paragraph is exempt from the provisions of Section 3-90.
5    (39) Tangible personal property purchased by a purchaser
6who is exempt from the tax imposed by this Act by operation of
7federal law. This paragraph is exempt from the provisions of
8Section 3-90.
9    (40) Qualified tangible personal property used in the
10construction or operation of a data center that has been
11granted a certificate of exemption by the Department of
12Commerce and Economic Opportunity, whether that tangible
13personal property is purchased by the owner, operator, or
14tenant of the data center or by a contractor or subcontractor
15of the owner, operator, or tenant. Data centers that would
16have qualified for a certificate of exemption prior to January
171, 2020 had Public Act 101-31 been in effect may apply for and
18obtain an exemption for subsequent purchases of computer
19equipment or enabling software purchased or leased to upgrade,
20supplement, or replace computer equipment or enabling software
21purchased or leased in the original investment that would have
22qualified.
23    The Department of Commerce and Economic Opportunity shall
24grant a certificate of exemption under this item (40) to
25qualified data centers as defined by Section 605-1025 of the
26Department of Commerce and Economic Opportunity Law of the

 

 

HB0154- 20 -LRB102 03886 HLH 13901 b

1Civil Administrative Code of Illinois.
2    For the purposes of this item (40):
3        "Data center" means a building or a series of
4    buildings rehabilitated or constructed to house working
5    servers in one physical location or multiple sites within
6    the State of Illinois.
7        "Qualified tangible personal property" means:
8    electrical systems and equipment; climate control and
9    chilling equipment and systems; mechanical systems and
10    equipment; monitoring and secure systems; emergency
11    generators; hardware; computers; servers; data storage
12    devices; network connectivity equipment; racks; cabinets;
13    telecommunications cabling infrastructure; raised floor
14    systems; peripheral components or systems; software;
15    mechanical, electrical, or plumbing systems; battery
16    systems; cooling systems and towers; temperature control
17    systems; other cabling; and other data center
18    infrastructure equipment and systems necessary to operate
19    qualified tangible personal property, including fixtures;
20    and component parts of any of the foregoing, including
21    installation, maintenance, repair, refurbishment, and
22    replacement of qualified tangible personal property to
23    generate, transform, transmit, distribute, or manage
24    electricity necessary to operate qualified tangible
25    personal property; and all other tangible personal
26    property that is essential to the operations of a computer

 

 

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1    data center. The term "qualified tangible personal
2    property" also includes building materials physically
3    incorporated in to the qualifying data center. To document
4    the exemption allowed under this Section, the retailer
5    must obtain from the purchaser a copy of the certificate
6    of eligibility issued by the Department of Commerce and
7    Economic Opportunity.
8    This item (40) is exempt from the provisions of Section
93-90.
10    (41) Beginning July 1, 2021, breast pumps, breast pump
11collection and storage supplies, and breast pump kits. This
12item (41) is exempt from the provisions of Section 3-90. As
13used in this item (41):
14        "Breast pump" means an electrically or
15    manually-controlled pump device designed or marketed to be
16    used to express milk from a human breast during lactation,
17    including the pump device and any battery, AC adapter, or
18    other power supply unit packaged and sold with the pump
19    device at the time of sale to power the pump device.
20        "Breast pump collection and storage supplies" means
21    items of tangible personal property designed or marketed
22    to be used in conjunction with a breast pump to collect
23    milk expressed from a human breast and to store collected
24    milk until it is ready for consumption. "Breast pump
25    collection and storage supplies" includes, but is not
26    limited to: breast shields and breast shield connectors;

 

 

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1    breast pump tubes and tubing adapters; breast pump valves
2    and membranes; backflow protectors and backflow protector
3    adaptors; bottles and bottle caps specific to the
4    operation of the breast pump; breast milk storage bags;
5    and other items that may be useful to initiate, support,
6    or sustain breast-feeding using a breast pump during
7    lactation that may be sold separately but are generally
8    sold as part of a breast pump kit.
9        "Breast pump collection and storage supplies" does not
10    include: (1) bottles and bottle caps not specific to the
11    operation of the breast pump, (2) breast pump travel bags
12    and other similar carrying accessories, including ice
13    packs, labels, and other similar products; (3) breast pump
14    cleaning supplies; (4) nursing bras, bra pads, breast
15    shells, and other similar products; and (5) creams,
16    ointments, and other similar products that relieve
17    breastfeeding-related symptoms or conditions of the
18    breasts or nipples, unless sold as part of a breast pump
19    kit pre-packaged by the breast pump manufacturer or
20    distributor.
21        "Breast pump kit" means a kit that contains a breast
22    pump and breast pump collection and storage supplies or
23    other taxable items of tangible personal property that may
24    be useful to initiate, support, or sustain breastfeeding
25    using a breast pump during lactation, so long as the other
26    taxable items of tangible personal property sold with the

 

 

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1    breast pump kit at the time of sale are less than 10% of
2    the total sales price of the breast pump kit.
3(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;
4100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
51-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
67-12-19; 101-629, eff. 2-5-20.)
 
7    Section 10. The Service Use Tax Act is amended by changing
8Section 3-5 as follows:
 
9    (35 ILCS 110/3-5)
10    Sec. 3-5. Exemptions. Use of the following tangible
11personal property is exempt from the tax imposed by this Act:
12    (1) Personal property purchased from a corporation,
13society, association, foundation, institution, or
14organization, other than a limited liability company, that is
15organized and operated as a not-for-profit service enterprise
16for the benefit of persons 65 years of age or older if the
17personal property was not purchased by the enterprise for the
18purpose of resale by the enterprise.
19    (2) Personal property purchased by a non-profit Illinois
20county fair association for use in conducting, operating, or
21promoting the county fair.
22    (3) Personal property purchased by a not-for-profit arts
23or cultural organization that establishes, by proof required
24by the Department by rule, that it has received an exemption

 

 

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1under Section 501(c)(3) of the Internal Revenue Code and that
2is organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after July 1, 2001 (the
9effective date of Public Act 92-35), however, an entity
10otherwise eligible for this exemption shall not make tax-free
11purchases unless it has an active identification number issued
12by the Department.
13    (4) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (5) Until July 1, 2003 and beginning again on September 1,
182004 through August 30, 2014, graphic arts machinery and
19equipment, including repair and replacement parts, both new
20and used, and including that manufactured on special order or
21purchased for lease, certified by the purchaser to be used
22primarily for graphic arts production. Equipment includes
23chemicals or chemicals acting as catalysts but only if the
24chemicals or chemicals acting as catalysts effect a direct and
25immediate change upon a graphic arts product. Beginning on
26July 1, 2017, graphic arts machinery and equipment is included

 

 

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

 

 

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

 

 

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

 

 

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1new and used, including that manufactured on special order,
2certified by the purchaser to be used primarily for
3photoprocessing, and including photoprocessing machinery and
4equipment purchased for lease.
5    (12) Until July 1, 2023, coal and aggregate exploration,
6mining, off-highway hauling, processing, maintenance, and
7reclamation equipment, including replacement parts and
8equipment, and including equipment purchased for lease, but
9excluding motor vehicles required to be registered under the
10Illinois Vehicle Code. The changes made to this Section by
11Public Act 97-767 apply on and after July 1, 2003, but no claim
12for credit or refund is allowed on or after August 16, 2013
13(the effective date of Public Act 98-456) for such taxes paid
14during the period beginning July 1, 2003 and ending on August
1516, 2013 (the effective date of Public Act 98-456).
16    (13) Semen used for artificial insemination of livestock
17for direct agricultural production.
18    (14) Horses, or interests in horses, registered with and
19meeting the requirements of any of the Arabian Horse Club
20Registry of America, Appaloosa Horse Club, American Quarter
21Horse Association, United States Trotting Association, or
22Jockey Club, as appropriate, used for purposes of breeding or
23racing for prizes. This item (14) is exempt from the
24provisions of Section 3-75, and the exemption provided for
25under this item (14) applies for all periods beginning May 30,
261995, but no claim for credit or refund is allowed on or after

 

 

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1January 1, 2008 (the effective date of Public Act 95-88) for
2such taxes paid during the period beginning May 30, 2000 and
3ending on January 1, 2008 (the effective date of Public Act
495-88).
5    (15) Computers and communications equipment utilized for
6any hospital purpose and equipment used in the diagnosis,
7analysis, or treatment of hospital patients purchased by a
8lessor who leases the equipment, under a lease of one year or
9longer executed or in effect at the time the lessor would
10otherwise be subject to the tax imposed by this Act, to a
11hospital that has been issued an active tax exemption
12identification number by the Department under Section 1g of
13the Retailers' Occupation Tax Act. If the equipment is leased
14in a manner that does not qualify for this exemption or is used
15in any other non-exempt manner, the lessor shall be liable for
16the tax imposed under this Act or the Use Tax Act, as the case
17may be, based on the fair market value of the property at the
18time the non-qualifying use occurs. No lessor shall collect or
19attempt to collect an amount (however designated) that
20purports to reimburse that lessor for the tax imposed by this
21Act or the Use Tax Act, as the case may be, if the tax has not
22been paid by the lessor. If a lessor improperly collects any
23such amount from the lessee, the lessee shall have a legal
24right to claim a refund of that amount from the lessor. If,
25however, that amount is not refunded to the lessee for any
26reason, the lessor is liable to pay that amount to the

 

 

HB0154- 30 -LRB102 03886 HLH 13901 b

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

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (18) 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 used in
9the performance of infrastructure repairs in this State,
10including but not limited to municipal roads and streets,
11access roads, bridges, sidewalks, waste disposal systems,
12water and sewer line extensions, water distribution and
13purification facilities, storm water drainage and retention
14facilities, and sewage treatment facilities, resulting from a
15State or federally declared disaster in Illinois or bordering
16Illinois when such repairs are initiated on facilities located
17in the declared disaster area within 6 months after the
18disaster.
19    (19) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-75.
23    (20) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the

 

 

HB0154- 32 -LRB102 03886 HLH 13901 b

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

 

 

HB0154- 33 -LRB102 03886 HLH 13901 b

1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-75.
4    (22) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and
7other items, and replacement parts for these machines.
8Beginning January 1, 2002 and through June 30, 2003, machines
9and parts for machines used in commercial, coin-operated
10amusement and vending business if a use or occupation tax is
11paid on the gross receipts derived from the use of the
12commercial, coin-operated amusement and vending machines. This
13paragraph is exempt from the provisions of Section 3-75.
14    (23) Beginning August 23, 2001 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages,
17soft drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

HB0154- 34 -LRB102 03886 HLH 13901 b

1    (24) Beginning on August 2, 2001 (the effective date of
2Public Act 92-227), computers and communications equipment
3utilized for any hospital purpose and equipment used in the
4diagnosis, analysis, or treatment of hospital patients
5purchased by a lessor who leases the equipment, under a lease
6of one year or longer executed or in effect at the time the
7lessor would otherwise be subject to the tax imposed by this
8Act, to a hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. If the equipment is leased
11in a manner that does not qualify for this exemption or is used
12in any other nonexempt manner, the lessor shall be liable for
13the tax imposed under this Act or the Use Tax Act, as the case
14may be, based on the fair market value of the property at the
15time the nonqualifying use occurs. No lessor shall collect or
16attempt to collect an amount (however designated) that
17purports to reimburse that lessor for the tax imposed by this
18Act or the Use Tax Act, as the case may be, if the tax has not
19been paid by the lessor. If a lessor improperly collects any
20such amount from the lessee, the lessee shall have a legal
21right to claim a refund of that amount from the lessor. If,
22however, that amount is not refunded to the lessee for any
23reason, the lessor is liable to pay that amount to the
24Department. This paragraph is exempt from the provisions of
25Section 3-75.
26    (25) Beginning on August 2, 2001 (the effective date of

 

 

HB0154- 35 -LRB102 03886 HLH 13901 b

1Public Act 92-227), personal property purchased by a lessor
2who leases the property, under a lease of one year or longer
3executed or in effect at the time the lessor would otherwise be
4subject to the tax imposed by this Act, to a governmental body
5that has been issued an active tax exemption identification
6number by the Department under Section 1g of the Retailers'
7Occupation Tax Act. If the property is leased in a manner that
8does not qualify for this exemption or is used in any other
9nonexempt manner, the lessor shall be liable for the tax
10imposed under this Act or the Use Tax Act, as the case may be,
11based on the fair market value of the property at the time the
12nonqualifying use occurs. No lessor shall collect or attempt
13to collect an amount (however designated) that purports to
14reimburse 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
16by the 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
19amount is not refunded to the lessee for any reason, the lessor
20is liable to pay that amount to the Department. This paragraph
21is exempt 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

 

 

HB0154- 36 -LRB102 03886 HLH 13901 b

1under Title IV of the Environmental Protection Act. This
2paragraph is exempt from the provisions of Section 3-75.
3    (27) Beginning January 1, 2010 and continuing through
4December 31, 2024, materials, parts, equipment, components,
5and furnishings incorporated into or upon an aircraft as part
6of the modification, refurbishment, completion, replacement,
7repair, or maintenance of the aircraft. This exemption
8includes consumable supplies used in the modification,
9refurbishment, completion, replacement, repair, and
10maintenance of aircraft, but excludes any materials, parts,
11equipment, components, and consumable supplies used in the
12modification, replacement, repair, and maintenance of aircraft
13engines or power plants, whether such engines or power plants
14are installed or uninstalled upon any such aircraft.
15"Consumable supplies" include, but are not limited to,
16adhesive, tape, sandpaper, general purpose lubricants,
17cleaning solution, latex gloves, and protective films. This
18exemption applies only to the use of qualifying tangible
19personal property transferred incident to the modification,
20refurbishment, completion, replacement, repair, or maintenance
21of aircraft by persons who (i) hold an Air Agency Certificate
22and are empowered to operate an approved repair station by the
23Federal Aviation Administration, (ii) have a Class IV Rating,
24and (iii) conduct operations in accordance with Part 145 of
25the Federal Aviation Regulations. The exemption does not
26include aircraft operated by a commercial air carrier

 

 

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1providing scheduled passenger air service pursuant to
2authority issued under Part 121 or Part 129 of the Federal
3Aviation Regulations. The changes made to this paragraph (27)
4by Public Act 98-534 are declarative of existing law. It is the
5intent of the General Assembly that the exemption under this
6paragraph (27) applies continuously from January 1, 2010
7through December 31, 2024; however, no claim for credit or
8refund is allowed for taxes paid as a result of the
9disallowance of this exemption on or after January 1, 2015 and
10prior to the effective date of this amendatory Act of the 101st
11General Assembly.
12    (28) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt
21instruments issued by the public-facilities corporation in
22connection with the development of the municipal convention
23hall. This exemption includes existing public-facilities
24corporations as provided in Section 11-65-25 of the Illinois
25Municipal Code. This paragraph is exempt from the provisions
26of Section 3-75.

 

 

HB0154- 38 -LRB102 03886 HLH 13901 b

1    (29) Beginning January 1, 2017, menstrual pads, tampons,
2and menstrual cups.
3    (30) Tangible personal property transferred to a purchaser
4who is exempt from the tax imposed by this Act by operation of
5federal law. This paragraph is exempt from the provisions of
6Section 3-75.
7    (31) Qualified tangible personal property used in the
8construction or operation of a data center that has been
9granted a certificate of exemption by the Department of
10Commerce and Economic Opportunity, whether that tangible
11personal property is purchased by the owner, operator, or
12tenant of the data center or by a contractor or subcontractor
13of the owner, operator, or tenant. Data centers that would
14have qualified for a certificate of exemption prior to January
151, 2020 had this amendatory Act of the 101st General Assembly
16been in effect, may apply for and obtain an exemption for
17subsequent purchases of computer equipment or enabling
18software purchased or leased to upgrade, supplement, or
19replace computer equipment or enabling software purchased or
20leased in the original investment that would have qualified.
21    The Department of Commerce and Economic Opportunity shall
22grant a certificate of exemption under this item (31) to
23qualified data centers as defined by Section 605-1025 of the
24Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    For the purposes of this item (31):

 

 

HB0154- 39 -LRB102 03886 HLH 13901 b

1        "Data center" means a building or a series of
2    buildings rehabilitated or constructed to house working
3    servers in one physical location or multiple sites within
4    the State of Illinois.
5        "Qualified tangible personal property" means:
6    electrical systems and equipment; climate control and
7    chilling equipment and systems; mechanical systems and
8    equipment; monitoring and secure systems; emergency
9    generators; hardware; computers; servers; data storage
10    devices; network connectivity equipment; racks; cabinets;
11    telecommunications cabling infrastructure; raised floor
12    systems; peripheral components or systems; software;
13    mechanical, electrical, or plumbing systems; battery
14    systems; cooling systems and towers; temperature control
15    systems; other cabling; and other data center
16    infrastructure equipment and systems necessary to operate
17    qualified tangible personal property, including fixtures;
18    and component parts of any of the foregoing, including
19    installation, maintenance, repair, refurbishment, and
20    replacement of qualified tangible personal property to
21    generate, transform, transmit, distribute, or manage
22    electricity necessary to operate qualified tangible
23    personal property; and all other tangible personal
24    property that is essential to the operations of a computer
25    data center. The term "qualified tangible personal
26    property" also includes building materials physically

 

 

HB0154- 40 -LRB102 03886 HLH 13901 b

1    incorporated in to the qualifying data center. To document
2    the exemption allowed under this Section, the retailer
3    must obtain from the purchaser a copy of the certificate
4    of eligibility issued by the Department of Commerce and
5    Economic Opportunity.
6    This item (31) is exempt from the provisions of Section
73-75.
8    (32) Beginning July 1, 2021, breast pumps, breast pump
9collection and storage supplies, and breast pump kits. This
10item (32) is exempt from the provisions of Section 3-75. As
11used in this item (32):
12        "Breast pump" means an electrically or
13    manually-controlled pump device designed or marketed to be
14    used to express milk from a human breast during lactation,
15    including the pump device and any battery, AC adapter, or
16    other power supply unit packaged and sold with the pump
17    device at the time of sale to power the pump device.
18        "Breast pump collection and storage supplies" means
19    items of tangible personal property designed or marketed
20    to be used in conjunction with a breast pump to collect
21    milk expressed from a human breast and to store collected
22    milk until it is ready for consumption. "Breast pump
23    collection and storage supplies" includes, but is not
24    limited to: breast shields and breast shield connectors;
25    breast pump tubes and tubing adapters; breast pump valves
26    and membranes; backflow protectors and backflow protector

 

 

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1    adaptors; bottles and bottle caps specific to the
2    operation of the breast pump; breast milk storage bags;
3    and other items that may be useful to initiate, support,
4    or sustain breast-feeding using a breast pump during
5    lactation that may be sold separately but are generally
6    sold as part of a breast pump kit.
7        "Breast pump collection and storage supplies" does not
8    include: (1) bottles and bottle caps not specific to the
9    operation of the breast pump, (2) breast pump travel bags
10    and other similar carrying accessories, including ice
11    packs, labels, and other similar products; (3) breast pump
12    cleaning supplies; (4) nursing bras, bra pads, breast
13    shells, and other similar products; and (5) creams,
14    ointments, and other similar products that relieve
15    breastfeeding-related symptoms or conditions of the
16    breasts or nipples, unless sold as part of a breast pump
17    kit pre-packaged by the breast pump manufacturer or
18    distributor.
19        "Breast pump kit" means a kit that contains a breast
20    pump and breast pump collection and storage supplies or
21    other taxable items of tangible personal property that may
22    be useful to initiate, support, or sustain breastfeeding
23    using a breast pump during lactation, so long as the other
24    taxable items of tangible personal property sold with the
25    breast pump kit at the time of sale are less than 10% of
26    the total sales price of the breast pump kit.

 

 

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1(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
2100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
37-12-19; 101-629, eff. 2-5-20.)
 
4    Section 15. The Service Occupation Tax Act is amended by
5changing Section 3-5 as follows:
 
6    (35 ILCS 115/3-5)
7    Sec. 3-5. Exemptions. The following tangible personal
8property is exempt from the tax imposed by this Act:
9    (1) Personal property sold by a corporation, society,
10association, foundation, institution, or organization, other
11than a limited liability company, that is organized and
12operated as a not-for-profit service enterprise for the
13benefit of persons 65 years of age or older if the personal
14property was not purchased by the enterprise for the purpose
15of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19    (3) Personal property purchased by any not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or
24support of arts or cultural programming, activities, or

 

 

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1services. These organizations include, but are not limited to,
2music and dramatic arts organizations such as symphony
3orchestras and theatrical groups, arts and cultural service
4organizations, local arts councils, visual arts organizations,
5and media arts organizations. On and after July 1, 2001 (the
6effective date of Public Act 92-35), however, an entity
7otherwise eligible for this exemption shall not make tax-free
8purchases unless it has an active identification number issued
9by the Department.
10    (4) Legal tender, currency, medallions, or gold or silver
11coinage issued by the State of Illinois, the government of the
12United States of America, or the government of any foreign
13country, and bullion.
14    (5) Until July 1, 2003 and beginning again on September 1,
152004 through August 30, 2014, graphic arts machinery and
16equipment, including repair and replacement parts, both new
17and used, and including that manufactured on special order or
18purchased for lease, certified by the purchaser to be used
19primarily for graphic arts production. Equipment includes
20chemicals or chemicals acting as catalysts but only if the
21chemicals or chemicals acting as catalysts effect a direct and
22immediate change upon a graphic arts product. Beginning on
23July 1, 2017, graphic arts machinery and equipment is included
24in the manufacturing and assembling machinery and equipment
25exemption under Section 2 of this Act.
26    (6) Personal property sold by a teacher-sponsored student

 

 

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

 

 

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

 

 

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1aircraft, without regard to a change in the flight number of
2that aircraft.
3    (9) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages, to the extent that the proceeds of the
6service charge are in fact turned over as tips or as a
7substitute for tips to the employees who participate directly
8in preparing, serving, hosting or cleaning up the food or
9beverage function with respect to which the service charge is
10imposed.
11    (10) Until July 1, 2003, oil field exploration, drilling,
12and production equipment, including (i) rigs and parts of
13rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
14pipe and tubular goods, including casing and drill strings,
15(iii) pumps and pump-jack units, (iv) storage tanks and flow
16lines, (v) any individual replacement part for oil field
17exploration, drilling, and production equipment, and (vi)
18machinery and equipment purchased for lease; but excluding
19motor vehicles required to be registered under the Illinois
20Vehicle Code.
21    (11) Photoprocessing machinery and equipment, including
22repair and replacement parts, both new and used, including
23that manufactured on special order, certified by the purchaser
24to be used primarily for photoprocessing, and including
25photoprocessing machinery and equipment purchased for lease.
26    (12) Until July 1, 2023, coal and aggregate exploration,

 

 

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1mining, off-highway hauling, processing, maintenance, and
2reclamation equipment, including replacement parts and
3equipment, and including equipment purchased for lease, but
4excluding motor vehicles required to be registered under the
5Illinois Vehicle Code. The changes made to this Section by
6Public Act 97-767 apply on and after July 1, 2003, but no claim
7for credit or refund is allowed on or after August 16, 2013
8(the effective date of Public Act 98-456) for such taxes paid
9during the period beginning July 1, 2003 and ending on August
1016, 2013 (the effective date of Public Act 98-456).
11    (13) Beginning January 1, 1992 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14soft drinks and food that has been prepared for immediate
15consumption) and prescription and non-prescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or in a licensed facility as defined
22in the ID/DD Community Care Act, the MC/DD Act, or the
23Specialized Mental Health Rehabilitation Act of 2013.
24    (14) Semen used for artificial insemination of livestock
25for direct agricultural production.
26    (15) Horses, or interests in horses, registered with and

 

 

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1meeting the requirements of any of the Arabian Horse Club
2Registry of America, Appaloosa Horse Club, American Quarter
3Horse Association, United States Trotting Association, or
4Jockey Club, as appropriate, used for purposes of breeding or
5racing for prizes. This item (15) is exempt from the
6provisions of Section 3-55, and the exemption provided for
7under this item (15) applies for all periods beginning May 30,
81995, but no claim for credit or refund is allowed on or after
9January 1, 2008 (the effective date of Public Act 95-88) for
10such taxes paid during the period beginning May 30, 2000 and
11ending on January 1, 2008 (the effective date of Public Act
1295-88).
13    (16) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients sold to a lessor
16who leases the equipment, under a lease of one year or longer
17executed or in effect at the time of the purchase, to a
18hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of
20the Retailers' Occupation Tax Act.
21    (17) Personal property sold to a lessor who leases the
22property, under a lease of one year or longer executed or in
23effect at the time of the purchase, to a governmental body that
24has been issued an active tax exemption identification number
25by the Department under Section 1g of the Retailers'
26Occupation Tax Act.

 

 

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

 

 

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1provisions of Section 3-55.
2    (21) A motor vehicle, as that term is defined in Section
31-146 of the Illinois Vehicle Code, that is donated to a
4corporation, limited liability company, society, association,
5foundation, or institution that is determined by the
6Department to be organized and operated exclusively for
7educational purposes. For purposes of this exemption, "a
8corporation, limited liability company, society, association,
9foundation, or institution organized and operated exclusively
10for educational purposes" means all tax-supported public
11schools, private schools that offer systematic instruction in
12useful branches of learning by methods common to public
13schools and that compare favorably in their scope and
14intensity with the course of study presented in tax-supported
15schools, and vocational or technical schools or institutes
16organized and operated exclusively to provide a course of
17study of not less than 6 weeks duration and designed to prepare
18individuals to follow a trade or to pursue a manual,
19technical, mechanical, industrial, business, or commercial
20occupation.
21    (22) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

 

 

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1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 3-55.
9    (23) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and
12other items, and replacement parts for these machines.
13Beginning January 1, 2002 and through June 30, 2003, machines
14and parts for machines used in commercial, coin-operated
15amusement and vending business if a use or occupation tax is
16paid on the gross receipts derived from the use of the
17commercial, coin-operated amusement and vending machines. This
18paragraph is exempt from the provisions of Section 3-55.
19    (24) Beginning on August 2, 2001 (the effective date of
20Public Act 92-227), computers and communications equipment
21utilized for any hospital purpose and equipment used in the
22diagnosis, analysis, or treatment of hospital patients sold to
23a lessor who leases the equipment, under a lease of one year or
24longer executed or in effect at the time of the purchase, to a
25hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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1the Retailers' Occupation Tax Act. This paragraph is exempt
2from the provisions of Section 3-55.
3    (25) Beginning on August 2, 2001 (the effective date of
4Public Act 92-227), personal property sold to a lessor who
5leases the property, under a lease of one year or longer
6executed or in effect at the time of the purchase, to a
7governmental body that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. This paragraph is exempt
10from the provisions of Section 3-55.
11    (26) Beginning on January 1, 2002 and through June 30,
122016, tangible personal property purchased from an Illinois
13retailer by a taxpayer engaged in centralized purchasing
14activities in Illinois who will, upon receipt of the property
15in Illinois, temporarily store the property in Illinois (i)
16for the purpose of subsequently transporting it outside this
17State for use or consumption thereafter solely outside this
18State or (ii) for the purpose of being processed, fabricated,
19or manufactured into, attached to, or incorporated into other
20tangible personal property to be transported outside this
21State and thereafter used or consumed solely outside this
22State. The Director of Revenue shall, pursuant to rules
23adopted in accordance with the Illinois Administrative
24Procedure Act, issue a permit to any taxpayer in good standing
25with the Department who is eligible for the exemption under
26this paragraph (26). The permit issued under this paragraph

 

 

HB0154- 53 -LRB102 03886 HLH 13901 b

1(26) shall authorize the holder, to the extent and in the
2manner specified in the rules adopted under this Act, to
3purchase tangible personal property from a retailer exempt
4from the taxes imposed by this Act. Taxpayers shall maintain
5all necessary books and records to substantiate the use and
6consumption of all such tangible personal property outside of
7the State of Illinois.
8    (27) 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
13under Title IV of the Environmental Protection Act. This
14paragraph is exempt from the provisions of Section 3-55.
15    (28) Tangible personal property sold to a
16public-facilities corporation, as described in Section
1711-65-10 of the Illinois Municipal Code, for purposes of
18constructing or furnishing a municipal convention hall, but
19only if the legal title to the municipal convention hall is
20transferred to the municipality without any further
21consideration by or on behalf of the municipality at the time
22of the completion of the municipal convention hall or upon the
23retirement or redemption of any bonds or other debt
24instruments issued by the public-facilities corporation in
25connection with the development of the municipal convention
26hall. This exemption includes existing public-facilities

 

 

HB0154- 54 -LRB102 03886 HLH 13901 b

1corporations as provided in Section 11-65-25 of the Illinois
2Municipal Code. This paragraph is exempt from the provisions
3of Section 3-55.
4    (29) Beginning January 1, 2010 and continuing through
5December 31, 2024, materials, parts, equipment, components,
6and furnishings incorporated into or upon an aircraft as part
7of the modification, refurbishment, completion, replacement,
8repair, or maintenance of the aircraft. This exemption
9includes consumable supplies used in the modification,
10refurbishment, completion, replacement, repair, and
11maintenance of aircraft, but excludes any materials, parts,
12equipment, components, and consumable supplies used in the
13modification, replacement, repair, and maintenance of aircraft
14engines or power plants, whether such engines or power plants
15are installed or uninstalled upon any such aircraft.
16"Consumable supplies" include, but are not limited to,
17adhesive, tape, sandpaper, general purpose lubricants,
18cleaning solution, latex gloves, and protective films. This
19exemption applies only to the transfer of qualifying tangible
20personal property incident to the modification, refurbishment,
21completion, replacement, repair, or maintenance of an aircraft
22by persons who (i) hold an Air Agency Certificate and are
23empowered to operate an approved repair station by the Federal
24Aviation Administration, (ii) have a Class IV Rating, and
25(iii) conduct operations in accordance with Part 145 of the
26Federal Aviation Regulations. The exemption does not include

 

 

HB0154- 55 -LRB102 03886 HLH 13901 b

1aircraft operated by a commercial air carrier providing
2scheduled passenger air service pursuant to authority issued
3under Part 121 or Part 129 of the Federal Aviation
4Regulations. The changes made to this paragraph (29) by Public
5Act 98-534 are declarative of existing law. It is the intent of
6the General Assembly that the exemption under this paragraph
7(29) applies continuously from January 1, 2010 through
8December 31, 2024; however, no claim for credit or refund is
9allowed for taxes paid as a result of the disallowance of this
10exemption on or after January 1, 2015 and prior to the
11effective date of this amendatory Act of the 101st General
12Assembly.
13    (30) Beginning January 1, 2017, menstrual pads, tampons,
14and menstrual cups.
15    (31) Tangible personal property transferred to a purchaser
16who is exempt from tax by operation of federal law. This
17paragraph is exempt from the provisions of Section 3-55.
18    (32) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would
25have qualified for a certificate of exemption prior to January
261, 2020 had this amendatory Act of the 101st General Assembly

 

 

HB0154- 56 -LRB102 03886 HLH 13901 b

1been in effect, may apply for and obtain an exemption for
2subsequent purchases of computer equipment or enabling
3software purchased or leased to upgrade, supplement, or
4replace computer equipment or enabling software purchased or
5leased in the original investment that would have qualified.
6    The Department of Commerce and Economic Opportunity shall
7grant a certificate of exemption under this item (32) to
8qualified data centers as defined by Section 605-1025 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    For the purposes of this item (32):
12        "Data center" means a building or a series of
13    buildings rehabilitated or constructed to house working
14    servers in one physical location or multiple sites within
15    the State of Illinois.
16        "Qualified tangible personal property" means:
17    electrical systems and equipment; climate control and
18    chilling equipment and systems; mechanical systems and
19    equipment; monitoring and secure systems; emergency
20    generators; hardware; computers; servers; data storage
21    devices; network connectivity equipment; racks; cabinets;
22    telecommunications cabling infrastructure; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems; battery
25    systems; cooling systems and towers; temperature control
26    systems; other cabling; and other data center

 

 

HB0154- 57 -LRB102 03886 HLH 13901 b

1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a computer
10    data center. The term "qualified tangible personal
11    property" also includes building materials physically
12    incorporated in to the qualifying data center. To document
13    the exemption allowed under this Section, the retailer
14    must obtain from the purchaser a copy of the certificate
15    of eligibility issued by the Department of Commerce and
16    Economic Opportunity.
17    This item (32) is exempt from the provisions of Section
183-55.
19    (33) Beginning July 1, 2021, breast pumps, breast pump
20collection and storage supplies, and breast pump kits. This
21item (33) is exempt from the provisions of Section 3-55. As
22used in this item (33):
23        "Breast pump" means an electrically or
24    manually-controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

HB0154- 58 -LRB102 03886 HLH 13901 b

1    other power supply unit packaged and sold with the pump
2    device at the time of sale to power the pump device.
3        "Breast pump collection and storage supplies" means
4    items of tangible personal property designed or marketed
5    to be used in conjunction with a breast pump to collect
6    milk expressed from a human breast and to store collected
7    milk until it is ready for consumption. "Breast pump
8    collection and storage supplies" includes, but is not
9    limited to: breast shields and breast shield connectors;
10    breast pump tubes and tubing adapters; breast pump valves
11    and membranes; backflow protectors and backflow protector
12    adaptors; bottles and bottle caps specific to the
13    operation of the breast pump; breast milk storage bags;
14    and other items that may be useful to initiate, support,
15    or sustain breast-feeding using a breast pump during
16    lactation that may be sold separately but are generally
17    sold as part of a breast pump kit.
18        "Breast pump collection and storage supplies" does not
19    include: (1) bottles and bottle caps not specific to the
20    operation of the breast pump, (2) breast pump travel bags
21    and other similar carrying accessories, including ice
22    packs, labels, and other similar products; (3) breast pump
23    cleaning supplies; (4) nursing bras, bra pads, breast
24    shells, and other similar products; and (5) creams,
25    ointments, and other similar products that relieve
26    breastfeeding-related symptoms or conditions of the

 

 

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1    breasts or nipples, unless sold as part of a breast pump
2    kit pre-packaged by the breast pump manufacturer or
3    distributor.
4        "Breast pump kit" means a kit that contains a breast
5    pump and breast pump collection and storage supplies or
6    other taxable items of tangible personal property that may
7    be useful to initiate, support, or sustain breastfeeding
8    using a breast pump during lactation, so long as the other
9    taxable items of tangible personal property sold with the
10    breast pump kit at the time of sale are less than 10% of
11    the total sales price of the breast pump kit.
12(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
13100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
147-12-19; 101-629, eff. 2-5-20.)
 
15    Section 20. The Retailers' Occupation Tax Act is amended
16by changing Section 2-5 as follows:
 
17    (35 ILCS 120/2-5)
18    Sec. 2-5. Exemptions. Gross receipts from proceeds from
19the sale of the following tangible personal property are
20exempt from the tax imposed by this Act:
21        (1) Farm chemicals.
22        (2) Farm machinery and equipment, both new and used,
23    including that manufactured on special order, certified by
24    the purchaser to be used primarily for production

 

 

HB0154- 60 -LRB102 03886 HLH 13901 b

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

 

 

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1        Farm machinery and equipment also includes computers,
2    sensors, software, and related equipment used primarily in
3    the computer-assisted operation of production agriculture
4    facilities, equipment, and activities such as, but not
5    limited to, the collection, monitoring, and correlation of
6    animal and crop data for the purpose of formulating animal
7    diets and agricultural chemicals. This item (2) is exempt
8    from the provisions of Section 2-70.
9        (3) Until July 1, 2003, distillation machinery and
10    equipment, sold as a unit or kit, assembled or installed
11    by the retailer, certified by the user to be used only for
12    the production of ethyl alcohol that will be used for
13    consumption as motor fuel or as a component of motor fuel
14    for the personal use of the user, and not subject to sale
15    or resale.
16        (4) Until July 1, 2003 and beginning again September
17    1, 2004 through August 30, 2014, graphic arts machinery
18    and equipment, including repair and replacement parts,
19    both new and used, and including that manufactured on
20    special order or purchased for lease, certified by the
21    purchaser to be used primarily for graphic arts
22    production. Equipment includes chemicals or chemicals
23    acting as catalysts but only if the chemicals or chemicals
24    acting as catalysts effect a direct and immediate change
25    upon a graphic arts product. Beginning on July 1, 2017,
26    graphic arts machinery and equipment is included in the

 

 

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1    manufacturing and assembling machinery and equipment
2    exemption under paragraph (14).
3        (5) A motor vehicle that is used for automobile
4    renting, as defined in the Automobile Renting Occupation
5    and Use Tax Act. This paragraph is exempt from the
6    provisions of Section 2-70.
7        (6) Personal property sold by a teacher-sponsored
8    student organization affiliated with an elementary or
9    secondary school located in Illinois.
10        (7) Until July 1, 2003, proceeds of that portion of
11    the selling price of a passenger car the sale of which is
12    subject to the Replacement Vehicle Tax.
13        (8) Personal property sold to an Illinois county fair
14    association for use in conducting, operating, or promoting
15    the county fair.
16        (9) Personal property sold to a not-for-profit arts or
17    cultural organization that establishes, by proof required
18    by the Department by rule, that it has received an
19    exemption under Section 501(c)(3) of the Internal Revenue
20    Code and that is organized and operated primarily for the
21    presentation or support of arts or cultural programming,
22    activities, or services. These organizations include, but
23    are not limited to, music and dramatic arts organizations
24    such as symphony orchestras and theatrical groups, arts
25    and cultural service organizations, local arts councils,
26    visual arts organizations, and media arts organizations.

 

 

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1    On and after July 1, 2001 (the effective date of Public Act
2    92-35), however, an entity otherwise eligible for this
3    exemption shall not make tax-free purchases unless it has
4    an active identification number issued by the Department.
5        (10) Personal property sold by a corporation, society,
6    association, foundation, institution, or organization,
7    other than a limited liability company, that is organized
8    and operated as a not-for-profit service enterprise for
9    the benefit of persons 65 years of age or older if the
10    personal property was not purchased by the enterprise for
11    the purpose of resale by the enterprise.
12        (11) Personal property sold to a governmental body, to
13    a corporation, society, association, foundation, or
14    institution organized and operated exclusively for
15    charitable, religious, or educational purposes, or to a
16    not-for-profit corporation, society, association,
17    foundation, institution, or organization that has no
18    compensated officers or employees and that is organized
19    and operated primarily for the recreation of persons 55
20    years of age or older. A limited liability company may
21    qualify for the exemption under this paragraph only if the
22    limited liability company is organized and operated
23    exclusively for educational purposes. On and after July 1,
24    1987, however, no entity otherwise eligible for this
25    exemption shall make tax-free purchases unless it has an
26    active identification number issued by the Department.

 

 

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1        (12) (Blank).
2        (12-5) On and after July 1, 2003 and through June 30,
3    2004, motor vehicles of the second division with a gross
4    vehicle weight in excess of 8,000 pounds that are subject
5    to the commercial distribution fee imposed under Section
6    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
7    2004 and through June 30, 2005, the use in this State of
8    motor vehicles of the second division: (i) with a gross
9    vehicle weight rating in excess of 8,000 pounds; (ii) that
10    are subject to the commercial distribution fee imposed
11    under Section 3-815.1 of the Illinois Vehicle Code; and
12    (iii) that are primarily used for commercial purposes.
13    Through June 30, 2005, this exemption applies to repair
14    and replacement parts added after the initial purchase of
15    such a motor vehicle if that motor vehicle is used in a
16    manner that would qualify for the rolling stock exemption
17    otherwise provided for in this Act. For purposes of this
18    paragraph, "used for commercial purposes" means the
19    transportation of persons or property in furtherance of
20    any commercial or industrial enterprise whether for-hire
21    or not.
22        (13) Proceeds from sales to owners, lessors, or
23    shippers of tangible personal property that is utilized by
24    interstate carriers for hire for use as rolling stock
25    moving in interstate commerce and equipment operated by a
26    telecommunications provider, licensed as a common carrier

 

 

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1    by the Federal Communications Commission, which is
2    permanently installed in or affixed to aircraft moving in
3    interstate commerce.
4        (14) Machinery and equipment that will be used by the
5    purchaser, or a lessee of the purchaser, primarily in the
6    process of manufacturing or assembling tangible personal
7    property for wholesale or retail sale or lease, whether
8    the sale or lease is made directly by the manufacturer or
9    by some other person, whether the materials used in the
10    process are owned by the manufacturer or some other
11    person, or whether the sale or lease is made apart from or
12    as an incident to the seller's engaging in the service
13    occupation of producing machines, tools, dies, jigs,
14    patterns, gauges, or other similar items of no commercial
15    value on special order for a particular purchaser. The
16    exemption provided by this paragraph (14) does not include
17    machinery and equipment used in (i) the generation of
18    electricity for wholesale or retail sale; (ii) the
19    generation or treatment of natural or artificial gas for
20    wholesale or retail sale that is delivered to customers
21    through pipes, pipelines, or mains; or (iii) the treatment
22    of water for wholesale or retail sale that is delivered to
23    customers through pipes, pipelines, or mains. The
24    provisions of Public Act 98-583 are declaratory of
25    existing law as to the meaning and scope of this
26    exemption. Beginning on July 1, 2017, the exemption

 

 

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1    provided by this paragraph (14) includes, but is not
2    limited to, graphic arts machinery and equipment, as
3    defined in paragraph (4) of this Section.
4        (15) Proceeds of mandatory service charges separately
5    stated on customers' bills for purchase and consumption of
6    food and beverages, to the extent that the proceeds of the
7    service charge are in fact turned over as tips or as a
8    substitute for tips to the employees who participate
9    directly in preparing, serving, hosting or cleaning up the
10    food or beverage function with respect to which the
11    service charge is imposed.
12        (16) Tangible personal property sold to a purchaser if
13    the purchaser is exempt from use tax by operation of
14    federal law. This paragraph is exempt from the provisions
15    of Section 2-70.
16        (17) Tangible personal property sold to a common
17    carrier by rail or motor that receives the physical
18    possession of the property in Illinois and that transports
19    the property, or shares with another common carrier in the
20    transportation of the property, out of Illinois on a
21    standard uniform bill of lading showing the seller of the
22    property as the shipper or consignor of the property to a
23    destination outside Illinois, for use outside Illinois.
24        (18) Legal tender, currency, medallions, or gold or
25    silver coinage issued by the State of Illinois, the
26    government of the United States of America, or the

 

 

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1    government of any foreign country, and bullion.
2        (19) Until July 1, 2003, oil field exploration,
3    drilling, and production equipment, including (i) rigs and
4    parts of rigs, rotary rigs, cable tool rigs, and workover
5    rigs, (ii) pipe and tubular goods, including casing and
6    drill strings, (iii) pumps and pump-jack units, (iv)
7    storage tanks and flow lines, (v) any individual
8    replacement part for oil field exploration, drilling, and
9    production equipment, and (vi) machinery and equipment
10    purchased for lease; but excluding motor vehicles required
11    to be registered under the Illinois Vehicle Code.
12        (20) Photoprocessing machinery and equipment,
13    including repair and replacement parts, both new and used,
14    including that manufactured on special order, certified by
15    the purchaser to be used primarily for photoprocessing,
16    and including photoprocessing machinery and equipment
17    purchased for lease.
18        (21) Until July 1, 2023, coal and aggregate
19    exploration, mining, off-highway hauling, processing,
20    maintenance, and reclamation equipment, including
21    replacement parts and equipment, and including equipment
22    purchased for lease, but excluding motor vehicles required
23    to be registered under the Illinois Vehicle Code. The
24    changes made to this Section by Public Act 97-767 apply on
25    and after July 1, 2003, but no claim for credit or refund
26    is allowed on or after August 16, 2013 (the effective date

 

 

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1    of Public Act 98-456) for such taxes paid during the
2    period beginning July 1, 2003 and ending on August 16,
3    2013 (the effective date of Public Act 98-456).
4        (22) Until June 30, 2013, fuel and petroleum products
5    sold to or used by an air carrier, certified by the carrier
6    to be used for consumption, shipment, or storage in the
7    conduct of its business as an air common carrier, for a
8    flight destined for or returning from a location or
9    locations outside the United States without regard to
10    previous or subsequent domestic stopovers.
11        Beginning July 1, 2013, fuel and petroleum products
12    sold to or used by an air carrier, certified by the carrier
13    to be used for consumption, shipment, or storage in the
14    conduct of its business as an air common carrier, for a
15    flight that (i) is engaged in foreign trade or is engaged
16    in trade between the United States and any of its
17    possessions and (ii) transports at least one individual or
18    package for hire from the city of origination to the city
19    of final destination on the same aircraft, without regard
20    to a change in the flight number of that aircraft.
21        (23) A transaction in which the purchase order is
22    received by a florist who is located outside Illinois, but
23    who has a florist located in Illinois deliver the property
24    to the purchaser or the purchaser's donee in Illinois.
25        (24) Fuel consumed or used in the operation of ships,
26    barges, or vessels that are used primarily in or for the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    streets, access roads, bridges, sidewalks, waste disposal
2    systems, water and sewer line extensions, water
3    distribution and purification facilities, storm water
4    drainage and retention facilities, and sewage treatment
5    facilities, resulting from a State or federally declared
6    disaster in Illinois or bordering Illinois when such
7    repairs are initiated on facilities located in the
8    declared disaster area within 6 months after the disaster.
9        (32) Beginning July 1, 1999, game or game birds sold
10    at a "game breeding and hunting preserve area" as that
11    term is used in the Wildlife Code. This paragraph is
12    exempt from the provisions of Section 2-70.
13        (33) A motor vehicle, as that term is defined in
14    Section 1-146 of the Illinois Vehicle Code, that is
15    donated to a corporation, limited liability company,
16    society, association, foundation, or institution that is
17    determined by the Department to be organized and operated
18    exclusively for educational purposes. For purposes of this
19    exemption, "a corporation, limited liability company,
20    society, association, foundation, or institution organized
21    and operated exclusively for educational purposes" means
22    all tax-supported public schools, private schools that
23    offer systematic instruction in useful branches of
24    learning by methods common to public schools and that
25    compare favorably in their scope and intensity with the
26    course of study presented in tax-supported schools, and

 

 

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1    vocational or technical schools or institutes organized
2    and operated exclusively to provide a course of study of
3    not less than 6 weeks duration and designed to prepare
4    individuals to follow a trade or to pursue a manual,
5    technical, mechanical, industrial, business, or commercial
6    occupation.
7        (34) Beginning January 1, 2000, personal property,
8    including food, purchased through fundraising events for
9    the benefit of a public or private elementary or secondary
10    school, a group of those schools, or one or more school
11    districts if the events are sponsored by an entity
12    recognized by the school district that consists primarily
13    of volunteers and includes parents and teachers of the
14    school children. This paragraph does not apply to
15    fundraising events (i) for the benefit of private home
16    instruction or (ii) for which the fundraising entity
17    purchases the personal property sold at the events from
18    another individual or entity that sold the property for
19    the purpose of resale by the fundraising entity and that
20    profits from the sale to the fundraising entity. This
21    paragraph is exempt from the provisions of Section 2-70.
22        (35) Beginning January 1, 2000 and through December
23    31, 2001, new or used automatic vending machines that
24    prepare and serve hot food and beverages, including
25    coffee, soup, and other items, and replacement parts for
26    these machines. Beginning January 1, 2002 and through June

 

 

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1    30, 2003, machines and parts for machines used in
2    commercial, coin-operated amusement and vending business
3    if a use or occupation tax is paid on the gross receipts
4    derived from the use of the commercial, coin-operated
5    amusement and vending machines. This paragraph is exempt
6    from the provisions of Section 2-70.
7        (35-5) Beginning August 23, 2001 and through June 30,
8    2016, food for human consumption that is to be consumed
9    off the premises where it is sold (other than alcoholic
10    beverages, soft drinks, and food that has been prepared
11    for immediate consumption) and prescription and
12    nonprescription medicines, drugs, medical appliances, and
13    insulin, urine testing materials, syringes, and needles
14    used by diabetics, for human use, when purchased for use
15    by a person receiving medical assistance under Article V
16    of the Illinois Public Aid Code who resides in a licensed
17    long-term care facility, as defined in the Nursing Home
18    Care Act, or a licensed facility as defined in the ID/DD
19    Community Care Act, the MC/DD Act, or the Specialized
20    Mental Health Rehabilitation Act of 2013.
21        (36) Beginning August 2, 2001, computers and
22    communications equipment utilized for any hospital purpose
23    and equipment used in the diagnosis, analysis, or
24    treatment of hospital patients sold to a lessor who leases
25    the equipment, under a lease of one year or longer
26    executed or in effect at the time of the purchase, to a

 

 

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1    hospital that has been issued an active tax exemption
2    identification number by the Department under Section 1g
3    of this Act. This paragraph is exempt from the provisions
4    of Section 2-70.
5        (37) Beginning August 2, 2001, personal property sold
6    to a lessor who leases the property, under a lease of one
7    year or longer executed or in effect at the time of the
8    purchase, to a governmental body that has been issued an
9    active tax exemption identification number by the
10    Department under Section 1g of this Act. This paragraph is
11    exempt from the provisions of Section 2-70.
12        (38) Beginning on January 1, 2002 and through June 30,
13    2016, tangible personal property purchased from an
14    Illinois retailer by a taxpayer engaged in centralized
15    purchasing activities in Illinois who will, upon receipt
16    of the property in Illinois, temporarily store the
17    property in Illinois (i) for the purpose of subsequently
18    transporting it outside this State for use or consumption
19    thereafter solely outside this State or (ii) for the
20    purpose of being processed, fabricated, or manufactured
21    into, attached to, or incorporated into other tangible
22    personal property to be transported outside this State and
23    thereafter used or consumed solely outside this State. The
24    Director of Revenue shall, pursuant to rules adopted in
25    accordance with the Illinois Administrative Procedure Act,
26    issue a permit to any taxpayer in good standing with the

 

 

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1    Department who is eligible for the exemption under this
2    paragraph (38). The permit issued under this paragraph
3    (38) shall authorize the holder, to the extent and in the
4    manner specified in the rules adopted under this Act, to
5    purchase tangible personal property from a retailer exempt
6    from the taxes imposed by this Act. Taxpayers shall
7    maintain all necessary books and records to substantiate
8    the use and consumption of all such tangible personal
9    property outside of the State of Illinois.
10        (39) Beginning January 1, 2008, tangible personal
11    property used in the construction or maintenance of a
12    community water supply, as defined under Section 3.145 of
13    the Environmental Protection Act, that is operated by a
14    not-for-profit corporation that holds a valid water supply
15    permit issued under Title IV of the Environmental
16    Protection Act. This paragraph is exempt from the
17    provisions of Section 2-70.
18        (40) Beginning January 1, 2010 and continuing through
19    December 31, 2024, materials, parts, equipment,
20    components, and furnishings incorporated into or upon an
21    aircraft as part of the modification, refurbishment,
22    completion, replacement, repair, or maintenance of the
23    aircraft. This exemption includes consumable supplies used
24    in the modification, refurbishment, completion,
25    replacement, repair, and maintenance of aircraft, but
26    excludes any materials, parts, equipment, components, and

 

 

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1    consumable supplies used in the modification, replacement,
2    repair, and maintenance of aircraft engines or power
3    plants, whether such engines or power plants are installed
4    or uninstalled upon any such aircraft. "Consumable
5    supplies" include, but are not limited to, adhesive, tape,
6    sandpaper, general purpose lubricants, cleaning solution,
7    latex gloves, and protective films. This exemption applies
8    only to the sale of qualifying tangible personal property
9    to persons who modify, refurbish, complete, replace, or
10    maintain an aircraft and who (i) hold an Air Agency
11    Certificate and are empowered to operate an approved
12    repair station by the Federal Aviation Administration,
13    (ii) have a Class IV Rating, and (iii) conduct operations
14    in accordance with Part 145 of the Federal Aviation
15    Regulations. The exemption does not include aircraft
16    operated by a commercial air carrier providing scheduled
17    passenger air service pursuant to authority issued under
18    Part 121 or Part 129 of the Federal Aviation Regulations.
19    The changes made to this paragraph (40) by Public Act
20    98-534 are declarative of existing law. It is the intent
21    of the General Assembly that the exemption under this
22    paragraph (40) applies continuously from January 1, 2010
23    through December 31, 2024; however, no claim for credit or
24    refund is allowed for taxes paid as a result of the
25    disallowance of this exemption on or after January 1, 2015
26    and prior to the effective date of this amendatory Act of

 

 

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1    the 101st General Assembly.
2        (41) Tangible personal property sold to a
3    public-facilities corporation, as described in Section
4    11-65-10 of the Illinois Municipal Code, for purposes of
5    constructing or furnishing a municipal convention hall,
6    but only if the legal title to the municipal convention
7    hall is transferred to the municipality without any
8    further consideration by or on behalf of the municipality
9    at the time of the completion of the municipal convention
10    hall or upon the retirement or redemption of any bonds or
11    other debt instruments issued by the public-facilities
12    corporation in connection with the development of the
13    municipal convention hall. This exemption includes
14    existing public-facilities corporations as provided in
15    Section 11-65-25 of the Illinois Municipal Code. This
16    paragraph is exempt from the provisions of Section 2-70.
17        (42) Beginning January 1, 2017, menstrual pads,
18    tampons, and menstrual cups.
19        (43) Merchandise that is subject to the Rental
20    Purchase Agreement Occupation and Use Tax. The purchaser
21    must certify that the item is purchased to be rented
22    subject to a rental purchase agreement, as defined in the
23    Rental Purchase Agreement Act, and provide proof of
24    registration under the Rental Purchase Agreement
25    Occupation and Use Tax Act. This paragraph is exempt from
26    the provisions of Section 2-70.

 

 

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1        (44) Qualified tangible personal property used in the
2    construction or operation of a data center that has been
3    granted a certificate of exemption by the Department of
4    Commerce and Economic Opportunity, whether that tangible
5    personal property is purchased by the owner, operator, or
6    tenant of the data center or by a contractor or
7    subcontractor of the owner, operator, or tenant. Data
8    centers that would have qualified for a certificate of
9    exemption prior to January 1, 2020 had this amendatory Act
10    of the 101st General Assembly been in effect, may apply
11    for and obtain an exemption for subsequent purchases of
12    computer equipment or enabling software purchased or
13    leased to upgrade, supplement, or replace computer
14    equipment or enabling software purchased or leased in the
15    original investment that would have qualified.
16        The Department of Commerce and Economic Opportunity
17    shall grant a certificate of exemption under this item
18    (44) to qualified data centers as defined by Section
19    605-1025 of the Department of Commerce and Economic
20    Opportunity Law of the Civil Administrative Code of
21    Illinois.
22        For the purposes of this item (44):
23            "Data center" means a building or a series of
24        buildings rehabilitated or constructed to house
25        working servers in one physical location or multiple
26        sites within the State of Illinois.

 

 

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1            "Qualified tangible personal property" means:
2        electrical systems and equipment; climate control and
3        chilling equipment and systems; mechanical systems and
4        equipment; monitoring and secure systems; emergency
5        generators; hardware; computers; servers; data storage
6        devices; network connectivity equipment; racks;
7        cabinets; telecommunications cabling infrastructure;
8        raised floor systems; peripheral components or
9        systems; software; mechanical, electrical, or plumbing
10        systems; battery systems; cooling systems and towers;
11        temperature control systems; other cabling; and other
12        data center infrastructure equipment and systems
13        necessary to operate qualified tangible personal
14        property, including fixtures; and component parts of
15        any of the foregoing, including installation,
16        maintenance, repair, refurbishment, and replacement of
17        qualified tangible personal property to generate,
18        transform, transmit, distribute, or manage electricity
19        necessary to operate qualified tangible personal
20        property; and all other tangible personal property
21        that is essential to the operations of a computer data
22        center. The term "qualified tangible personal
23        property" also includes building materials physically
24        incorporated in to the qualifying data center. To
25        document the exemption allowed under this Section, the
26        retailer must obtain from the purchaser a copy of the

 

 

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1        certificate of eligibility issued by the Department of
2        Commerce and Economic Opportunity.
3        This item (44) is exempt from the provisions of
4    Section 2-70.
5        (45) Beginning July 1, 2021, breast pumps, breast pump
6    collection and storage supplies, and breast pump kits.
7    This item (45) is exempt from the provisions of Section
8    2-70. As used in this item (45):
9        "Breast pump" means an electrically or
10    manually-controlled pump device designed or marketed to be
11    used to express milk from a human breast during lactation,
12    including the pump device and any battery, AC adapter, or
13    other power supply unit packaged and sold with the pump
14    device at the time of sale to power the pump device.
15        "Breast pump collection and storage supplies" means
16    items of tangible personal property designed or marketed
17    to be used in conjunction with a breast pump to collect
18    milk expressed from a human breast and to store collected
19    milk until it is ready for consumption. "Breast pump
20    collection and storage supplies" includes, but is not
21    limited to: breast shields and breast shield connectors;
22    breast pump tubes and tubing adapters; breast pump valves
23    and membranes; backflow protectors and backflow protector
24    adaptors; bottles and bottle caps specific to the
25    operation of the breast pump; breast milk storage bags;
26    and other items that may be useful to initiate, support,

 

 

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1    or sustain breast-feeding using a breast pump during
2    lactation that may be sold separately but are generally
3    sold as part of a breast pump kit.
4        "Breast pump collection and storage supplies" does not
5    include: (1) bottles and bottle caps not specific to the
6    operation of the breast pump, (2) breast pump travel bags
7    and other similar carrying accessories, including ice
8    packs, labels, and other similar products; (3) breast pump
9    cleaning supplies; (4) nursing bras, bra pads, breast
10    shells, and other similar products; and (5) creams,
11    ointments, and other similar products that relieve
12    breastfeeding-related symptoms or conditions of the
13    breasts or nipples, unless sold as part of a breast pump
14    kit pre-packaged by the breast pump manufacturer or
15    distributor.
16        "Breast pump kit" means a kit that contains a breast
17    pump and breast pump collection and storage supplies or
18    other taxable items of tangible personal property that may
19    be useful to initiate, support, or sustain breastfeeding
20    using a breast pump during lactation, so long as the other
21    taxable items of tangible personal property sold with the
22    breast pump kit at the time of sale are less than 10% of
23    the total sales price of the breast pump kit.
24(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
25100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
268-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,

 

 

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1eff. 7-12-19; 101-629, eff. 2-5-20.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.