Illinois General Assembly - Full Text of HB1848
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Full Text of HB1848  102nd General Assembly

HB1848 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1848

 

Introduced 2/17/2021, by Rep. Lamont J. Robinson, Jr.

 

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 January 1, 2022, meals and food products for human consumption furnished or served to low-income elderly persons at or below cost by a nonprofit organization or governmental agency under a program funded by this State or the United States are exempt from taxation under the Acts. Provides that the exemption is exempt from the Acts' automatic sunset provisions. Effective immediately.


LRB102 03949 HLH 13965 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1848LRB102 03949 HLH 13965 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,

 

 

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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

 

 

HB1848- 18 -LRB102 03949 HLH 13965 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

 

 

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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

 

 

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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 January 1, 2022, meals and food products
11for human consumption furnished or served to low-income
12elderly persons at or below cost by a nonprofit organization
13or governmental agency under a program funded by this State or
14the United States for such purposes. This paragraph is exempt
15from the provisions of Section 3-90.
16(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;
17100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
181-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
197-12-19; 101-629, eff. 2-5-20.)
 
20    Section 10. The Service Use Tax Act is amended by changing
21Section 3-5 as follows:
 
22    (35 ILCS 110/3-5)
23    Sec. 3-5. Exemptions. Use of the following tangible
24personal property is exempt from the tax imposed by this Act:

 

 

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1    (1) Personal property purchased from a corporation,
2society, association, foundation, institution, or
3organization, other than a limited liability company, that is
4organized and operated as a not-for-profit service enterprise
5for the benefit of persons 65 years of age or older if the
6personal property was not purchased by the enterprise for the
7purpose of resale by the enterprise.
8    (2) Personal property purchased by a non-profit Illinois
9county fair association for use in conducting, operating, or
10promoting the county fair.
11    (3) Personal property purchased by a not-for-profit arts
12or cultural organization that establishes, by proof required
13by the Department by rule, that it has received an exemption
14under Section 501(c)(3) of the Internal Revenue Code and that
15is organized and operated primarily for the presentation or
16support of arts or cultural programming, activities, or
17services. These organizations include, but are not limited to,
18music and dramatic arts organizations such as symphony
19orchestras and theatrical groups, arts and cultural service
20organizations, local arts councils, visual arts organizations,
21and media arts organizations. On and after July 1, 2001 (the
22effective date of Public Act 92-35), however, an entity
23otherwise eligible for this exemption shall not make tax-free
24purchases unless it has an active identification number issued
25by the Department.
26    (4) Legal tender, currency, medallions, or gold or silver

 

 

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1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4    (5) Until July 1, 2003 and beginning again on September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new
7and used, and including that manufactured on special order or
8purchased for lease, certified by the purchaser to be used
9primarily for graphic arts production. Equipment includes
10chemicals or chemicals acting as catalysts but only if the
11chemicals or chemicals acting as catalysts effect a direct and
12immediate change upon a graphic arts product. Beginning on
13July 1, 2017, graphic arts machinery and equipment is included
14in the manufacturing and assembling machinery and equipment
15exemption under Section 2 of this Act.
16    (6) Personal property purchased from a teacher-sponsored
17student organization affiliated with an elementary or
18secondary school located in Illinois.
19    (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

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

 

 

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1provisions of Section 3-75.
2    (8) Until June 30, 2013, fuel and petroleum products sold
3to or used by an air common carrier, certified by the carrier
4to be used for consumption, shipment, or storage in the
5conduct of its business as an air common carrier, for a flight
6destined for or returning from a location or locations outside
7the United States without regard to previous or subsequent
8domestic stopovers.
9    Beginning July 1, 2013, fuel and petroleum products sold
10to or used by an air carrier, certified by the carrier to be
11used for consumption, shipment, or storage in the conduct of
12its business as an air common carrier, for a flight that (i) is
13engaged in foreign trade or is engaged in trade between the
14United States and any of its possessions and (ii) transports
15at least one individual or package for hire from the city of
16origination to the city of final destination on the same
17aircraft, without regard to a change in the flight number of
18that aircraft.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages acquired as an incident to the purchase of a
22service from a serviceman, to the extent that the proceeds of
23the service charge are in fact turned over as tips or as a
24substitute for tips to the employees who participate directly
25in preparing, serving, hosting or cleaning up the food or
26beverage function with respect to which the service charge is

 

 

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1imposed.
2    (10) Until July 1, 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of
4rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
5pipe and tubular goods, including casing and drill strings,
6(iii) pumps and pump-jack units, (iv) storage tanks and flow
7lines, (v) any individual replacement part for oil field
8exploration, drilling, and production equipment, and (vi)
9machinery and equipment purchased for lease; but excluding
10motor vehicles required to be registered under the Illinois
11Vehicle Code.
12    (11) Proceeds from the sale of photoprocessing machinery
13and equipment, including repair and replacement parts, both
14new and used, including that manufactured on special order,
15certified by the purchaser to be used primarily for
16photoprocessing, and including photoprocessing machinery and
17equipment purchased for lease.
18    (12) Until July 1, 2023, coal and aggregate exploration,
19mining, off-highway hauling, processing, maintenance, and
20reclamation equipment, including replacement parts and
21equipment, and including equipment purchased for lease, but
22excluding motor vehicles required to be registered under the
23Illinois Vehicle Code. The changes made to this Section by
24Public Act 97-767 apply on and after July 1, 2003, but no claim
25for credit or refund is allowed on or after August 16, 2013
26(the effective date of Public Act 98-456) for such taxes paid

 

 

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1during the period beginning July 1, 2003 and ending on August
216, 2013 (the effective date of Public Act 98-456).
3    (13) Semen used for artificial insemination of livestock
4for direct agricultural production.
5    (14) Horses, or interests in horses, registered with and
6meeting the requirements of any of the Arabian Horse Club
7Registry of America, Appaloosa Horse Club, American Quarter
8Horse Association, United States Trotting Association, or
9Jockey Club, as appropriate, used for purposes of breeding or
10racing for prizes. This item (14) is exempt from the
11provisions of Section 3-75, and the exemption provided for
12under this item (14) applies for all periods beginning May 30,
131995, but no claim for credit or refund is allowed on or after
14January 1, 2008 (the effective date of Public Act 95-88) for
15such taxes paid during the period beginning May 30, 2000 and
16ending on January 1, 2008 (the effective date of Public Act
1795-88).
18    (15) Computers and communications equipment utilized for
19any hospital purpose and equipment used in the diagnosis,
20analysis, or treatment of hospital patients purchased by a
21lessor who leases the equipment, under a lease of one year or
22longer executed or in effect at the time the lessor would
23otherwise be subject to the tax imposed by this Act, to a
24hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of
26the Retailers' Occupation Tax Act. If the equipment is leased

 

 

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

 

 

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1to collect an amount (however designated) that purports to
2reimburse that lessor for the tax imposed by this Act or the
3Use Tax Act, as the case may be, if the tax has not been paid
4by the lessor. If a lessor improperly collects any such amount
5from the lessee, the lessee shall have a legal right to claim a
6refund of that amount from the lessor. If, however, that
7amount is not refunded to the lessee for any reason, the lessor
8is liable to pay that amount to the Department.
9    (17) Beginning with taxable years ending on or after
10December 31, 1995 and ending with taxable years ending on or
11before December 31, 2004, personal property that is donated
12for disaster relief to be used in a State or federally declared
13disaster area in Illinois or bordering Illinois by a
14manufacturer or retailer that is registered in this State to a
15corporation, society, association, foundation, or institution
16that has been issued a sales tax exemption identification
17number by the Department that assists victims of the disaster
18who reside within the declared disaster area.
19    (18) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is used in
22the performance of infrastructure repairs in this State,
23including but not limited to municipal roads and streets,
24access roads, bridges, sidewalks, waste disposal systems,
25water and sewer line extensions, water distribution and
26purification facilities, storm water drainage and retention

 

 

HB1848- 30 -LRB102 03949 HLH 13965 b

1facilities, and sewage treatment facilities, resulting from a
2State or federally declared disaster in Illinois or bordering
3Illinois when such repairs are initiated on facilities located
4in the declared disaster area within 6 months after the
5disaster.
6    (19) Beginning July 1, 1999, game or game birds purchased
7at a "game breeding and hunting preserve area" as that term is
8used in the Wildlife Code. This paragraph is exempt from the
9provisions of Section 3-75.
10    (20) A motor vehicle, as that term is defined in Section
111-146 of the Illinois Vehicle Code, that is donated to a
12corporation, limited liability company, society, association,
13foundation, or institution that is determined by the
14Department to be organized and operated exclusively for
15educational purposes. For purposes of this exemption, "a
16corporation, limited liability company, society, association,
17foundation, or institution organized and operated exclusively
18for educational purposes" means all tax-supported public
19schools, private schools that offer systematic instruction in
20useful branches of learning by methods common to public
21schools and that compare favorably in their scope and
22intensity with the course of study presented in tax-supported
23schools, and vocational or technical schools or institutes
24organized and operated exclusively to provide a course of
25study of not less than 6 weeks duration and designed to prepare
26individuals to follow a trade or to pursue a manual,

 

 

HB1848- 31 -LRB102 03949 HLH 13965 b

1technical, mechanical, industrial, business, or commercial
2occupation.
3    (21) Beginning January 1, 2000, personal property,
4including food, purchased through fundraising events for the
5benefit of a public or private elementary or secondary school,
6a group of those schools, or one or more school districts if
7the events are sponsored by an entity recognized by the school
8district that consists primarily of volunteers and includes
9parents and teachers of the school children. This paragraph
10does not apply to fundraising events (i) for the benefit of
11private home instruction or (ii) for which the fundraising
12entity purchases the personal property sold at the events from
13another individual or entity that sold the property for the
14purpose of resale by the fundraising entity and that profits
15from the sale to the fundraising entity. This paragraph is
16exempt from the provisions of Section 3-75.
17    (22) Beginning January 1, 2000 and through December 31,
182001, new or used automatic vending machines that prepare and
19serve hot food and beverages, including coffee, soup, and
20other items, and replacement parts for these machines.
21Beginning January 1, 2002 and through June 30, 2003, machines
22and parts for machines used in commercial, coin-operated
23amusement and vending business if a use or occupation tax is
24paid on the gross receipts derived from the use of the
25commercial, coin-operated amusement and vending machines. This
26paragraph is exempt from the provisions of Section 3-75.

 

 

HB1848- 32 -LRB102 03949 HLH 13965 b

1    (23) Beginning August 23, 2001 and through June 30, 2016,
2food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages,
4soft drinks, and food that has been prepared for immediate
5consumption) and prescription and nonprescription medicines,
6drugs, medical appliances, and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use, when purchased for use by a person receiving medical
9assistance under Article V of the Illinois Public Aid Code who
10resides in a licensed long-term care facility, as defined in
11the Nursing Home Care Act, or in a licensed facility as defined
12in the ID/DD Community Care Act, the MC/DD Act, or the
13Specialized Mental Health Rehabilitation Act of 2013.
14    (24) Beginning on August 2, 2001 (the effective date of
15Public Act 92-227), computers and communications equipment
16utilized for any hospital purpose and equipment used in the
17diagnosis, analysis, or treatment of hospital patients
18purchased by a lessor who leases the equipment, under a lease
19of one year or longer executed or in effect at the time the
20lessor would otherwise be subject to the tax imposed by this
21Act, to a hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23the Retailers' Occupation Tax Act. If the equipment is leased
24in a manner that does not qualify for this exemption or is used
25in any other nonexempt manner, the lessor shall be liable for
26the tax imposed under this Act or the Use Tax Act, as the case

 

 

HB1848- 33 -LRB102 03949 HLH 13965 b

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

 

 

HB1848- 34 -LRB102 03949 HLH 13965 b

1reimburse that lessor for the tax imposed by this Act or the
2Use Tax Act, as the case may be, if the tax has not been paid
3by the lessor. If a lessor improperly collects any such amount
4from the lessee, the lessee shall have a legal right to claim a
5refund of that amount from the lessor. If, however, that
6amount is not refunded to the lessee for any reason, the lessor
7is liable to pay that amount to the Department. This paragraph
8is exempt from the provisions of Section 3-75.
9    (26) Beginning January 1, 2008, tangible personal property
10used in the construction or maintenance of a community water
11supply, as defined under Section 3.145 of the Environmental
12Protection Act, that is operated by a not-for-profit
13corporation that holds a valid water supply permit issued
14under Title IV of the Environmental Protection Act. This
15paragraph is exempt from the provisions of Section 3-75.
16    (27) Beginning January 1, 2010 and continuing through
17December 31, 2024, materials, parts, equipment, components,
18and furnishings incorporated into or upon an aircraft as part
19of the modification, refurbishment, completion, replacement,
20repair, or maintenance of the aircraft. This exemption
21includes consumable supplies used in the modification,
22refurbishment, completion, replacement, repair, and
23maintenance of aircraft, but excludes any materials, parts,
24equipment, components, and consumable supplies used in the
25modification, replacement, repair, and maintenance of aircraft
26engines or power plants, whether such engines or power plants

 

 

HB1848- 35 -LRB102 03949 HLH 13965 b

1are installed or uninstalled upon any such aircraft.
2"Consumable supplies" include, but are not limited to,
3adhesive, tape, sandpaper, general purpose lubricants,
4cleaning solution, latex gloves, and protective films. This
5exemption applies only to the use of qualifying tangible
6personal property transferred incident to the modification,
7refurbishment, completion, replacement, repair, or maintenance
8of aircraft by persons who (i) hold an Air Agency Certificate
9and are empowered to operate an approved repair station by the
10Federal Aviation Administration, (ii) have a Class IV Rating,
11and (iii) conduct operations in accordance with Part 145 of
12the Federal Aviation Regulations. The exemption does not
13include aircraft operated by a commercial air carrier
14providing scheduled passenger air service pursuant to
15authority issued under Part 121 or Part 129 of the Federal
16Aviation Regulations. The changes made to this paragraph (27)
17by Public Act 98-534 are declarative of existing law. It is the
18intent of the General Assembly that the exemption under this
19paragraph (27) applies continuously from January 1, 2010
20through December 31, 2024; however, no claim for credit or
21refund is allowed for taxes paid as a result of the
22disallowance of this exemption on or after January 1, 2015 and
23prior to the effective date of this amendatory Act of the 101st
24General Assembly.
25    (28) Tangible personal property purchased by a
26public-facilities corporation, as described in Section

 

 

HB1848- 36 -LRB102 03949 HLH 13965 b

111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt
8instruments issued by the public-facilities corporation in
9connection with the development of the municipal convention
10hall. This exemption includes existing public-facilities
11corporations as provided in Section 11-65-25 of the Illinois
12Municipal Code. This paragraph is exempt from the provisions
13of Section 3-75.
14    (29) Beginning January 1, 2017, menstrual pads, tampons,
15and menstrual cups.
16    (30) Tangible personal property transferred to a purchaser
17who is exempt from the tax imposed by this Act by operation of
18federal law. This paragraph is exempt from the provisions of
19Section 3-75.
20    (31) Qualified tangible personal property used in the
21construction or operation of a data center that has been
22granted a certificate of exemption by the Department of
23Commerce and Economic Opportunity, whether that tangible
24personal property is purchased by the owner, operator, or
25tenant of the data center or by a contractor or subcontractor
26of the owner, operator, or tenant. Data centers that would

 

 

HB1848- 37 -LRB102 03949 HLH 13965 b

1have qualified for a certificate of exemption prior to January
21, 2020 had this amendatory Act of the 101st General Assembly
3been in effect, may apply for and obtain an exemption for
4subsequent purchases of computer equipment or enabling
5software purchased or leased to upgrade, supplement, or
6replace computer equipment or enabling software purchased or
7leased in the original investment that would have qualified.
8    The Department of Commerce and Economic Opportunity shall
9grant a certificate of exemption under this item (31) to
10qualified data centers as defined by Section 605-1025 of the
11Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    For the purposes of this item (31):
14        "Data center" means a building or a series of
15    buildings rehabilitated or constructed to house working
16    servers in one physical location or multiple sites within
17    the State of Illinois.
18        "Qualified tangible personal property" means:
19    electrical systems and equipment; climate control and
20    chilling equipment and systems; mechanical systems and
21    equipment; monitoring and secure systems; emergency
22    generators; hardware; computers; servers; data storage
23    devices; network connectivity equipment; racks; cabinets;
24    telecommunications cabling infrastructure; raised floor
25    systems; peripheral components or systems; software;
26    mechanical, electrical, or plumbing systems; battery

 

 

HB1848- 38 -LRB102 03949 HLH 13965 b

1    systems; cooling systems and towers; temperature control
2    systems; other cabling; and other data center
3    infrastructure equipment and systems necessary to operate
4    qualified tangible personal property, including fixtures;
5    and component parts of any of the foregoing, including
6    installation, maintenance, repair, refurbishment, and
7    replacement of qualified tangible personal property to
8    generate, transform, transmit, distribute, or manage
9    electricity necessary to operate qualified tangible
10    personal property; and all other tangible personal
11    property that is essential to the operations of a computer
12    data center. The term "qualified tangible personal
13    property" also includes building materials physically
14    incorporated in to the qualifying data center. To document
15    the exemption allowed under this Section, the retailer
16    must obtain from the purchaser a copy of the certificate
17    of eligibility issued by the Department of Commerce and
18    Economic Opportunity.
19    This item (31) is exempt from the provisions of Section
203-75.
21    (32) Beginning January 1, 2022, meals and food products
22for human consumption furnished or served to low-income
23elderly persons at or below cost by a nonprofit organization
24or governmental agency under a program funded by this State or
25the United States for such purposes. This paragraph is exempt
26from the provisions of Section 3-75.

 

 

HB1848- 39 -LRB102 03949 HLH 13965 b

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

 

 

HB1848- 40 -LRB102 03949 HLH 13965 b

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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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 January 1, 2022, meals and food products
20for human consumption furnished or served to low-income
21elderly persons at or below cost by a nonprofit organization
22or governmental agency under a program funded by this State or
23the United States for such purposes. This paragraph is exempt
24from the provisions of Section 3-55.
25(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
26100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.

 

 

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17-12-19; 101-629, eff. 2-5-20.)
 
2    Section 20. The Retailers' Occupation Tax Act is amended
3by changing Section 2-5 as follows:
 
4    (35 ILCS 120/2-5)
5    Sec. 2-5. Exemptions. Gross receipts from proceeds from
6the sale of the following tangible personal property are
7exempt from the tax imposed by this Act:
8        (1) Farm chemicals.
9        (2) Farm machinery and equipment, both new and used,
10    including that manufactured on special order, certified by
11    the purchaser to be used primarily for production
12    agriculture or State or federal agricultural programs,
13    including individual replacement parts for the machinery
14    and equipment, including machinery and equipment purchased
15    for lease, and including implements of husbandry defined
16    in Section 1-130 of the Illinois Vehicle Code, farm
17    machinery and agricultural chemical and fertilizer
18    spreaders, and nurse wagons required to be registered
19    under Section 3-809 of the Illinois Vehicle Code, but
20    excluding other motor vehicles required to be registered
21    under the Illinois Vehicle Code. Horticultural polyhouses
22    or hoop houses used for propagating, growing, or
23    overwintering plants shall be considered farm machinery
24    and equipment under this item (2). Agricultural chemical

 

 

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1    tender tanks and dry boxes shall include units sold
2    separately from a motor vehicle required to be licensed
3    and units sold mounted on a motor vehicle required to be
4    licensed, if the selling price of the tender is separately
5    stated.
6        Farm machinery and equipment shall include precision
7    farming equipment that is installed or purchased to be
8    installed on farm machinery and equipment including, but
9    not limited to, tractors, harvesters, sprayers, planters,
10    seeders, or spreaders. Precision farming equipment
11    includes, but is not limited to, soil testing sensors,
12    computers, monitors, software, global positioning and
13    mapping systems, and other such equipment.
14        Farm machinery and equipment also includes computers,
15    sensors, software, and related equipment used primarily in
16    the computer-assisted operation of production agriculture
17    facilities, equipment, and activities such as, but not
18    limited to, the collection, monitoring, and correlation of
19    animal and crop data for the purpose of formulating animal
20    diets and agricultural chemicals. This item (2) is exempt
21    from the provisions of Section 2-70.
22        (3) Until July 1, 2003, distillation machinery and
23    equipment, sold as a unit or kit, assembled or installed
24    by the retailer, certified by the user to be used only for
25    the production of ethyl alcohol that will be used for
26    consumption as motor fuel or as a component of motor fuel

 

 

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1    for the personal use of the user, and not subject to sale
2    or resale.
3        (4) Until July 1, 2003 and beginning again September
4    1, 2004 through August 30, 2014, graphic arts machinery
5    and equipment, including repair and replacement parts,
6    both new and used, and including that manufactured on
7    special order or purchased for lease, certified by the
8    purchaser to be used primarily for graphic arts
9    production. Equipment includes chemicals or chemicals
10    acting as catalysts but only if the chemicals or chemicals
11    acting as catalysts effect a direct and immediate change
12    upon a graphic arts product. Beginning on July 1, 2017,
13    graphic arts machinery and equipment is included in the
14    manufacturing and assembling machinery and equipment
15    exemption under paragraph (14).
16        (5) A motor vehicle that is used for automobile
17    renting, as defined in the Automobile Renting Occupation
18    and Use Tax Act. This paragraph is exempt from the
19    provisions of Section 2-70.
20        (6) Personal property sold by a teacher-sponsored
21    student organization affiliated with an elementary or
22    secondary school located in Illinois.
23        (7) Until July 1, 2003, proceeds of that portion of
24    the selling price of a passenger car the sale of which is
25    subject to the Replacement Vehicle Tax.
26        (8) Personal property sold to an Illinois county fair

 

 

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1    association for use in conducting, operating, or promoting
2    the county fair.
3        (9) Personal property sold to a not-for-profit arts or
4    cultural organization that establishes, by proof required
5    by the Department by rule, that it has received an
6    exemption under Section 501(c)(3) of the Internal Revenue
7    Code and that is organized and operated primarily for the
8    presentation or support of arts or cultural programming,
9    activities, or services. These organizations include, but
10    are not limited to, music and dramatic arts organizations
11    such as symphony orchestras and theatrical groups, arts
12    and cultural service organizations, local arts councils,
13    visual arts organizations, and media arts organizations.
14    On and after July 1, 2001 (the effective date of Public Act
15    92-35), however, an entity otherwise eligible for this
16    exemption shall not make tax-free purchases unless it has
17    an active identification number issued by the Department.
18        (10) Personal property sold by a corporation, society,
19    association, foundation, institution, or organization,
20    other than a limited liability company, that is organized
21    and operated as a not-for-profit service enterprise for
22    the benefit of persons 65 years of age or older if the
23    personal property was not purchased by the enterprise for
24    the purpose of resale by the enterprise.
25        (11) Personal property sold to a governmental body, to
26    a corporation, society, association, foundation, or

 

 

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1    institution organized and operated exclusively for
2    charitable, religious, or educational purposes, or to a
3    not-for-profit corporation, society, association,
4    foundation, institution, or organization that has no
5    compensated officers or employees and that is organized
6    and operated primarily for the recreation of persons 55
7    years of age or older. A limited liability company may
8    qualify for the exemption under this paragraph only if the
9    limited liability company is organized and operated
10    exclusively for educational purposes. On and after July 1,
11    1987, however, no entity otherwise eligible for this
12    exemption shall make tax-free purchases unless it has an
13    active identification number issued by the Department.
14        (12) (Blank).
15        (12-5) On and after July 1, 2003 and through June 30,
16    2004, motor vehicles of the second division with a gross
17    vehicle weight in excess of 8,000 pounds that are subject
18    to the commercial distribution fee imposed under Section
19    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
20    2004 and through June 30, 2005, the use in this State of
21    motor vehicles of the second division: (i) with a gross
22    vehicle weight rating in excess of 8,000 pounds; (ii) that
23    are subject to the commercial distribution fee imposed
24    under Section 3-815.1 of the Illinois Vehicle Code; and
25    (iii) that are primarily used for commercial purposes.
26    Through June 30, 2005, this exemption applies to repair

 

 

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

 

 

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1    patterns, gauges, or other similar items of no commercial
2    value on special order for a particular purchaser. The
3    exemption provided by this paragraph (14) does not include
4    machinery and equipment used in (i) the generation of
5    electricity for wholesale or retail sale; (ii) the
6    generation or treatment of natural or artificial gas for
7    wholesale or retail sale that is delivered to customers
8    through pipes, pipelines, or mains; or (iii) the treatment
9    of water for wholesale or retail sale that is delivered to
10    customers through pipes, pipelines, or mains. The
11    provisions of Public Act 98-583 are declaratory of
12    existing law as to the meaning and scope of this
13    exemption. Beginning on July 1, 2017, the exemption
14    provided by this paragraph (14) includes, but is not
15    limited to, graphic arts machinery and equipment, as
16    defined in paragraph (4) of this Section.
17        (15) Proceeds of mandatory service charges separately
18    stated on customers' bills for purchase and consumption of
19    food and beverages, to the extent that the proceeds of the
20    service charge are in fact turned over as tips or as a
21    substitute for tips to the employees who participate
22    directly in preparing, serving, hosting or cleaning up the
23    food or beverage function with respect to which the
24    service charge is imposed.
25        (16) Tangible personal property sold to a purchaser if
26    the purchaser is exempt from use tax by operation of

 

 

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1    federal law. This paragraph is exempt from the provisions
2    of Section 2-70.
3        (17) Tangible personal property sold to a common
4    carrier by rail or motor that receives the physical
5    possession of the property in Illinois and that transports
6    the property, or shares with another common carrier in the
7    transportation of the property, out of Illinois on a
8    standard uniform bill of lading showing the seller of the
9    property as the shipper or consignor of the property to a
10    destination outside Illinois, for use outside Illinois.
11        (18) Legal tender, currency, medallions, or gold or
12    silver coinage issued by the State of Illinois, the
13    government of the United States of America, or the
14    government of any foreign country, and bullion.
15        (19) Until July 1, 2003, oil field exploration,
16    drilling, and production equipment, including (i) rigs and
17    parts of rigs, rotary rigs, cable tool rigs, and workover
18    rigs, (ii) pipe and tubular goods, including casing and
19    drill strings, (iii) pumps and pump-jack units, (iv)
20    storage tanks and flow lines, (v) any individual
21    replacement part for oil field exploration, drilling, and
22    production equipment, and (vi) machinery and equipment
23    purchased for lease; but excluding motor vehicles required
24    to be registered under the Illinois Vehicle Code.
25        (20) Photoprocessing machinery and equipment,
26    including repair and replacement parts, both new and used,

 

 

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1    including that manufactured on special order, certified by
2    the purchaser to be used primarily for photoprocessing,
3    and including photoprocessing machinery and equipment
4    purchased for lease.
5        (21) Until July 1, 2023, coal and aggregate
6    exploration, mining, off-highway hauling, processing,
7    maintenance, and reclamation equipment, including
8    replacement parts and equipment, and including equipment
9    purchased for lease, but excluding motor vehicles required
10    to be registered under the Illinois Vehicle Code. The
11    changes made to this Section by Public Act 97-767 apply on
12    and after July 1, 2003, but no claim for credit or refund
13    is allowed on or after August 16, 2013 (the effective date
14    of Public Act 98-456) for such taxes paid during the
15    period beginning July 1, 2003 and ending on August 16,
16    2013 (the effective date of Public Act 98-456).
17        (22) Until June 30, 2013, fuel and petroleum products
18    sold to or used by an air carrier, certified by the carrier
19    to be used for consumption, shipment, or storage in the
20    conduct of its business as an air common carrier, for a
21    flight destined for or returning from a location or
22    locations outside the United States without regard to
23    previous or subsequent domestic stopovers.
24        Beginning July 1, 2013, fuel and petroleum products
25    sold to or used by an air carrier, certified by the carrier
26    to be used for consumption, shipment, or storage in the

 

 

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

 

 

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

 

 

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1    require the removal of the vehicle from this state
2    following the filing of an intent to title the vehicle in
3    the purchaser's state of residence if the purchaser titles
4    the vehicle in his or her state of residence within 30 days
5    after the date of sale. The tax collected under this Act in
6    accordance with this item (25-5) shall be proportionately
7    distributed as if the tax were collected at the 6.25%
8    general rate imposed under this Act.
9        (25-7) Beginning on July 1, 2007, no tax is imposed
10    under this Act on the sale of an aircraft, as defined in
11    Section 3 of the Illinois Aeronautics Act, if all of the
12    following conditions are met:
13            (1) the aircraft leaves this State within 15 days
14        after the later of either the issuance of the final
15        billing for the sale of the aircraft, or the
16        authorized approval for return to service, completion
17        of the maintenance record entry, and completion of the
18        test flight and ground test for inspection, as
19        required by 14 C.F.R. 91.407;
20            (2) the aircraft is not based or registered in
21        this State after the sale of the aircraft; and
22            (3) the seller retains in his or her books and
23        records and provides to the Department a signed and
24        dated certification from the purchaser, on a form
25        prescribed by the Department, certifying that the
26        requirements of this item (25-7) are met. The

 

 

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1        certificate must also include the name and address of
2        the purchaser, the address of the location where the
3        aircraft is to be titled or registered, the address of
4        the primary physical location of the aircraft, and
5        other information that the Department may reasonably
6        require.
7        For purposes of this item (25-7):
8        "Based in this State" means hangared, stored, or
9    otherwise used, excluding post-sale customizations as
10    defined in this Section, for 10 or more days in each
11    12-month period immediately following the date of the sale
12    of the aircraft.
13        "Registered in this State" means an aircraft
14    registered with the Department of Transportation,
15    Aeronautics Division, or titled or registered with the
16    Federal Aviation Administration to an address located in
17    this State.
18        This paragraph (25-7) is exempt from the provisions of
19    Section 2-70.
20        (26) Semen used for artificial insemination of
21    livestock for direct agricultural production.
22        (27) Horses, or interests in horses, registered with
23    and meeting the requirements of any of the Arabian Horse
24    Club Registry of America, Appaloosa Horse Club, American
25    Quarter Horse Association, United States Trotting
26    Association, or Jockey Club, as appropriate, used for

 

 

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1    purposes of breeding or racing for prizes. This item (27)
2    is exempt from the provisions of Section 2-70, and the
3    exemption provided for under this item (27) applies for
4    all periods beginning May 30, 1995, but no claim for
5    credit or refund is allowed on or after January 1, 2008
6    (the effective date of Public Act 95-88) for such taxes
7    paid during the period beginning May 30, 2000 and ending
8    on January 1, 2008 (the effective date of Public Act
9    95-88).
10        (28) Computers and communications equipment utilized
11    for any hospital purpose and equipment used in the
12    diagnosis, analysis, or treatment of hospital patients
13    sold to a lessor who leases the equipment, under a lease of
14    one year or longer executed or in effect at the time of the
15    purchase, to a hospital that has been issued an active tax
16    exemption identification number by the Department under
17    Section 1g of this Act.
18        (29) Personal property sold to a lessor who leases the
19    property, under a lease of one year or longer executed or
20    in effect at the time of the purchase, to a governmental
21    body that has been issued an active tax exemption
22    identification number by the Department under Section 1g
23    of this Act.
24        (30) Beginning with taxable years ending on or after
25    December 31, 1995 and ending with taxable years ending on
26    or before December 31, 2004, personal property that is

 

 

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1    donated for disaster relief to be used in a State or
2    federally declared disaster area in Illinois or bordering
3    Illinois by a manufacturer or retailer that is registered
4    in this State to a corporation, society, association,
5    foundation, or institution that has been issued a sales
6    tax exemption identification number by the Department that
7    assists victims of the disaster who reside within the
8    declared disaster area.
9        (31) Beginning with taxable years ending on or after
10    December 31, 1995 and ending with taxable years ending on
11    or before December 31, 2004, personal property that is
12    used in the performance of infrastructure repairs in this
13    State, including but not limited to municipal roads and
14    streets, access roads, bridges, sidewalks, waste disposal
15    systems, water and sewer line extensions, water
16    distribution and purification facilities, storm water
17    drainage and retention facilities, and sewage treatment
18    facilities, resulting from a State or federally declared
19    disaster in Illinois or bordering Illinois when such
20    repairs are initiated on facilities located in the
21    declared disaster area within 6 months after the disaster.
22        (32) Beginning July 1, 1999, game or game birds sold
23    at a "game breeding and hunting preserve area" as that
24    term is used in the Wildlife Code. This paragraph is
25    exempt from the provisions of Section 2-70.
26        (33) A motor vehicle, as that term is defined in

 

 

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

 

 

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

 

 

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1    used by diabetics, for human use, when purchased for use
2    by a person receiving medical assistance under Article V
3    of the Illinois Public Aid Code who resides in a licensed
4    long-term care facility, as defined in the Nursing Home
5    Care Act, or a licensed facility as defined in the ID/DD
6    Community Care Act, the MC/DD Act, or the Specialized
7    Mental Health Rehabilitation Act of 2013.
8        (36) Beginning August 2, 2001, computers and
9    communications equipment utilized for any hospital purpose
10    and equipment used in the diagnosis, analysis, or
11    treatment of hospital patients sold to a lessor who leases
12    the equipment, under a lease of one year or longer
13    executed or in effect at the time of the purchase, to a
14    hospital that has been issued an active tax exemption
15    identification number by the Department under Section 1g
16    of this Act. This paragraph is exempt from the provisions
17    of Section 2-70.
18        (37) Beginning August 2, 2001, personal property sold
19    to a lessor who leases the property, under a lease of one
20    year or longer executed or in effect at the time of the
21    purchase, to a governmental body that has been issued an
22    active tax exemption identification number by the
23    Department under Section 1g of this Act. This paragraph is
24    exempt from the provisions of Section 2-70.
25        (38) Beginning on January 1, 2002 and through June 30,
26    2016, tangible personal property purchased from an

 

 

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1    Illinois retailer by a taxpayer engaged in centralized
2    purchasing activities in Illinois who will, upon receipt
3    of the property in Illinois, temporarily store the
4    property in Illinois (i) for the purpose of subsequently
5    transporting it outside this State for use or consumption
6    thereafter solely outside this State or (ii) for the
7    purpose of being processed, fabricated, or manufactured
8    into, attached to, or incorporated into other tangible
9    personal property to be transported outside this State and
10    thereafter used or consumed solely outside this State. The
11    Director of Revenue shall, pursuant to rules adopted in
12    accordance with the Illinois Administrative Procedure Act,
13    issue a permit to any taxpayer in good standing with the
14    Department who is eligible for the exemption under this
15    paragraph (38). The permit issued under this paragraph
16    (38) shall authorize the holder, to the extent and in the
17    manner specified in the rules adopted under this Act, to
18    purchase tangible personal property from a retailer exempt
19    from the taxes imposed by this Act. Taxpayers shall
20    maintain all necessary books and records to substantiate
21    the use and consumption of all such tangible personal
22    property outside of the State of Illinois.
23        (39) Beginning January 1, 2008, tangible personal
24    property used in the construction or maintenance of a
25    community water supply, as defined under Section 3.145 of
26    the Environmental Protection Act, that is operated by a

 

 

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1    not-for-profit corporation that holds a valid water supply
2    permit issued under Title IV of the Environmental
3    Protection Act. This paragraph is exempt from the
4    provisions of Section 2-70.
5        (40) Beginning January 1, 2010 and continuing through
6    December 31, 2024, materials, parts, equipment,
7    components, and furnishings incorporated into or upon an
8    aircraft as part of the modification, refurbishment,
9    completion, replacement, repair, or maintenance of the
10    aircraft. This exemption includes consumable supplies used
11    in the modification, refurbishment, completion,
12    replacement, repair, and maintenance of aircraft, but
13    excludes any materials, parts, equipment, components, and
14    consumable supplies used in the modification, replacement,
15    repair, and maintenance of aircraft engines or power
16    plants, whether such engines or power plants are installed
17    or uninstalled upon any such aircraft. "Consumable
18    supplies" include, but are not limited to, adhesive, tape,
19    sandpaper, general purpose lubricants, cleaning solution,
20    latex gloves, and protective films. This exemption applies
21    only to the sale of qualifying tangible personal property
22    to persons who modify, refurbish, complete, replace, or
23    maintain an aircraft and who (i) hold an Air Agency
24    Certificate and are empowered to operate an approved
25    repair station by the Federal Aviation Administration,
26    (ii) have a Class IV Rating, and (iii) conduct operations

 

 

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1    in accordance with Part 145 of the Federal Aviation
2    Regulations. The exemption does not include aircraft
3    operated by a commercial air carrier providing scheduled
4    passenger air service pursuant to authority issued under
5    Part 121 or Part 129 of the Federal Aviation Regulations.
6    The changes made to this paragraph (40) by Public Act
7    98-534 are declarative of existing law. It is the intent
8    of the General Assembly that the exemption under this
9    paragraph (40) applies continuously from January 1, 2010
10    through December 31, 2024; however, no claim for credit or
11    refund is allowed for taxes paid as a result of the
12    disallowance of this exemption on or after January 1, 2015
13    and prior to the effective date of this amendatory Act of
14    the 101st General Assembly.
15        (41) Tangible personal property sold to a
16    public-facilities corporation, as described in Section
17    11-65-10 of the Illinois Municipal Code, for purposes of
18    constructing or furnishing a municipal convention hall,
19    but only if the legal title to the municipal convention
20    hall is transferred to the municipality without any
21    further consideration by or on behalf of the municipality
22    at the time of the completion of the municipal convention
23    hall or upon the retirement or redemption of any bonds or
24    other debt instruments issued by the public-facilities
25    corporation in connection with the development of the
26    municipal convention hall. This exemption includes

 

 

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1    existing public-facilities corporations as provided in
2    Section 11-65-25 of the Illinois Municipal Code. This
3    paragraph is exempt from the provisions of Section 2-70.
4        (42) Beginning January 1, 2017, menstrual pads,
5    tampons, and menstrual cups.
6        (43) Merchandise that is subject to the Rental
7    Purchase Agreement Occupation and Use Tax. The purchaser
8    must certify that the item is purchased to be rented
9    subject to a rental purchase agreement, as defined in the
10    Rental Purchase Agreement Act, and provide proof of
11    registration under the Rental Purchase Agreement
12    Occupation and Use Tax Act. This paragraph is exempt from
13    the provisions of Section 2-70.
14        (44) Qualified tangible personal property used in the
15    construction or operation of a data center that has been
16    granted a certificate of exemption by the Department of
17    Commerce and Economic Opportunity, whether that tangible
18    personal property is purchased by the owner, operator, or
19    tenant of the data center or by a contractor or
20    subcontractor of the owner, operator, or tenant. Data
21    centers that would have qualified for a certificate of
22    exemption prior to January 1, 2020 had this amendatory Act
23    of the 101st General Assembly been in effect, may apply
24    for and obtain an exemption for subsequent purchases of
25    computer equipment or enabling software purchased or
26    leased to upgrade, supplement, or replace computer

 

 

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1    equipment or enabling software purchased or leased in the
2    original investment that would have qualified.
3        The Department of Commerce and Economic Opportunity
4    shall grant a certificate of exemption under this item
5    (44) to qualified data centers as defined by Section
6    605-1025 of the Department of Commerce and Economic
7    Opportunity Law of the Civil Administrative Code of
8    Illinois.
9        For the purposes of this item (44):
10            "Data center" means a building or a series of
11        buildings rehabilitated or constructed to house
12        working servers in one physical location or multiple
13        sites within the State of Illinois.
14            "Qualified tangible personal property" means:
15        electrical systems and equipment; climate control and
16        chilling equipment and systems; mechanical systems and
17        equipment; monitoring and secure systems; emergency
18        generators; hardware; computers; servers; data storage
19        devices; network connectivity equipment; racks;
20        cabinets; telecommunications cabling infrastructure;
21        raised floor systems; peripheral components or
22        systems; software; mechanical, electrical, or plumbing
23        systems; battery systems; cooling systems and towers;
24        temperature control systems; other cabling; and other
25        data center infrastructure equipment and systems
26        necessary to operate qualified tangible personal

 

 

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1        property, including fixtures; and component parts of
2        any of the foregoing, including installation,
3        maintenance, repair, refurbishment, and replacement of
4        qualified tangible personal property to generate,
5        transform, transmit, distribute, or manage electricity
6        necessary to operate qualified tangible personal
7        property; and all other tangible personal property
8        that is essential to the operations of a computer data
9        center. The term "qualified tangible personal
10        property" also includes building materials physically
11        incorporated in to the qualifying data center. To
12        document the exemption allowed under this Section, the
13        retailer must obtain from the purchaser a copy of the
14        certificate of eligibility issued by the Department of
15        Commerce and Economic Opportunity.
16        This item (44) is exempt from the provisions of
17    Section 2-70.
18        (45) Beginning January 1, 2022, meals and food
19    products for human consumption furnished or served to
20    low-income elderly persons at or below cost by a nonprofit
21    organization or governmental agency under a program funded
22    by this State or the United States for such purposes. This
23    paragraph is exempt from the provisions of Section 2-70.
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.