Illinois General Assembly - Full Text of HB3000
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Full Text of HB3000  102nd General Assembly

HB3000 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3000

 

Introduced 2/19/2021, by Rep. Dave Severin

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that if an in-State retailer or serviceman bids on a purchase order or contract to provide materials, equipment, or supplies to a municipality with a population under 1,000,000, and that purchase order or contract involves an amount in excess of $25,000, then the municipality may apply to the Department of Revenue for a certificate of exemption from the taxes imposed under specified local provisions of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act for the in-State retailer or serviceman, or a third-party supplier of the retailer or serviceman, with respect to the materials, equipment, or supplies covered by the bid if: at least one other bid is received from an out-of-State retailer or serviceman; the in-State retailer or serviceman demonstrates the necessity of the exemption in order to submit the lowest responsible bid, including substantive proof furnished by the retailer or serviceman to the municipality or the Department of Revenue; and the in-State retailer provides an itemized estimate of cost to the corporate authorities of the municipality. Defines terms. Makes confirming changes in the following Acts and Codes: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Salem Civic Center Law of 1997 of the Civic Center Code, the Metropolitan Pier and Exposition Authority Act, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Effective immediately.


LRB102 14915 HLH 20270 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3000LRB102 14915 HLH 20270 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-805 as follows:
 
7    (20 ILCS 2505/2505-805 new)
8    Sec. 2505-805. Exemption for materials, equipment, or
9supplies of a bid.
10    (a) As used in this Section:
11    "In-State retailer or serviceman" means a retailer or
12serviceman with a principal place of business located in the
13State.
14    "Local provisions of the Use Tax Act, the Service Use Tax
15Act, the Service Occupation Tax Act, and the Retailers'
16Occupation Tax Act" means use taxes or occupation taxes
17imposed under the Counties Code, the Illinois Municipal Code,
18the Salem Civic Center Law of 1997 of the Civic Center Code,
19the Metropolitan Pier and Exposition Authority Act, the Flood
20Prevention District Act, the Metro-East Park and Recreation
21District Act, the Local Mass Transit District Act, the
22Regional Transportation Authority Act, and the Water
23Commission Act of 1985.

 

 

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1    "Out-of-State retailer or serviceman" means a retailer or
2serviceman with a principal place of business located outside
3of the State.
4    (b) If an in-State retailer or serviceman bids on a
5purchase order or contract to provide materials, equipment, or
6supplies to a municipality with a population of less than
71,000,000, and that purchase order or contract involves an
8amount in excess of $25,000, then the municipality may apply
9to the Department of Revenue for a certificate of exemption
10from the taxes imposed under local provisions of the Use Tax
11Act, the Service Use Tax Act, the Service Occupation Tax Act,
12and the Retailers' Occupation Tax Act for the in-State
13retailer or serviceman, or a third-party supplier of the
14in-State retailer or serviceman, with respect to the
15materials, equipment, or supplies covered by the bid if all of
16the following conditions apply:
17        (1) at least one other bid is received from an
18    out-of-State retailer or serviceman;
19        (2) the in-State retailer or serviceman demonstrates
20    the necessity of the exemption in order to submit the
21    lowest responsible bid under the guidelines provided under
22    Division 9 or 10 of Article 8 of the Illinois Municipal
23    Code, including substantive proof furnished by the
24    retailer or serviceman to the municipality or the
25    Department of Revenue; and
26        (3) the in-State retailer provides an itemized

 

 

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1    estimate of cost to the corporate authorities of the
2    municipality.
 
3    Section 10. The Use Tax Act is amended by changing Section
43-5 as follows:
 
5    (35 ILCS 105/3-5)
6    Sec. 3-5. Exemptions. Use of the following tangible
7personal property is exempt from the tax imposed by this Act:
8    (1) Personal property purchased from a corporation,
9society, association, foundation, institution, or
10organization, other than a limited liability company, that is
11organized and operated as a not-for-profit service enterprise
12for the benefit of persons 65 years of age or older if the
13personal property was not purchased by the enterprise for the
14purpose of resale by the enterprise.
15    (2) Personal property purchased by a not-for-profit
16Illinois county fair association for use in conducting,
17operating, or promoting the county fair.
18    (3) Personal property purchased by a not-for-profit arts
19or cultural organization that establishes, by proof required
20by the Department by rule, that it has received an exemption
21under Section 501(c)(3) of the Internal Revenue Code and that
22is organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

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1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after July 1, 2001 (the
5effective date of Public Act 92-35), however, an entity
6otherwise eligible for this exemption shall not make tax-free
7purchases unless it has an active identification number issued
8by the Department.
9    (4) Personal property purchased by a governmental body, by
10a corporation, society, association, foundation, or
11institution organized and operated exclusively for charitable,
12religious, or educational purposes, or by a not-for-profit
13corporation, society, association, foundation, institution, or
14organization that has no compensated officers or employees and
15that is organized and operated primarily for the recreation of
16persons 55 years of age or older. A limited liability company
17may qualify for the exemption under this paragraph only if the
18limited liability company is organized and operated
19exclusively for educational purposes. On and after July 1,
201987, however, no entity otherwise eligible for this exemption
21shall make tax-free purchases unless it has an active
22exemption identification number issued by the Department.
23    (5) Until July 1, 2003, a passenger car that is a
24replacement vehicle to the extent that the purchase price of
25the car is subject to the Replacement Vehicle Tax.
26    (6) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new
3and used, and including that manufactured on special order,
4certified by the purchaser to be used primarily for graphic
5arts production, and including machinery and equipment
6purchased for lease. Equipment includes chemicals or chemicals
7acting as catalysts but only if the chemicals or chemicals
8acting as catalysts effect a direct and immediate change upon
9a graphic arts product. Beginning on July 1, 2017, graphic
10arts machinery and equipment is included in the manufacturing
11and assembling machinery and equipment exemption under
12paragraph (18).
13    (7) Farm chemicals.
14    (8) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (9) Personal property purchased from a teacher-sponsored
19student organization affiliated with an elementary or
20secondary school located in Illinois.
21    (10) A motor vehicle that is used for automobile renting,
22as defined in the Automobile Renting Occupation and Use Tax
23Act.
24    (11) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

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

 

 

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

 

 

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1extent that the proceeds of the service charge are in fact
2turned over as tips or as a substitute for tips to the
3employees who participate directly in preparing, serving,
4hosting or cleaning up the food or beverage function with
5respect to which the service charge is imposed.
6    (14) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of
8rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
9pipe and tubular goods, including casing and drill strings,
10(iii) pumps and pump-jack units, (iv) storage tanks and flow
11lines, (v) any individual replacement part for oil field
12exploration, drilling, and production equipment, and (vi)
13machinery and equipment purchased for lease; but excluding
14motor vehicles required to be registered under the Illinois
15Vehicle Code.
16    (15) Photoprocessing machinery and equipment, including
17repair and replacement parts, both new and used, including
18that manufactured on special order, certified by the purchaser
19to be used primarily for photoprocessing, and including
20photoprocessing machinery and equipment purchased for lease.
21    (16) Until July 1, 2023, coal and aggregate exploration,
22mining, off-highway hauling, processing, maintenance, and
23reclamation equipment, including replacement parts and
24equipment, and including equipment purchased for lease, but
25excluding motor vehicles required to be registered under the
26Illinois Vehicle Code. The changes made to this Section by

 

 

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1Public Act 97-767 apply on and after July 1, 2003, but no claim
2for credit or refund is allowed on or after August 16, 2013
3(the effective date of Public Act 98-456) for such taxes paid
4during the period beginning July 1, 2003 and ending on August
516, 2013 (the effective date of Public Act 98-456).
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order
22for a particular purchaser. The exemption provided by this
23paragraph (18) includes production related tangible personal
24property, as defined in Section 3-50, purchased on or after
25July 1, 2019. The exemption provided by this paragraph (18)
26does not include machinery and equipment used in (i) the

 

 

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1generation of electricity for wholesale or retail sale; (ii)
2the generation or treatment of natural or artificial gas for
3wholesale or retail sale that is delivered to customers
4through pipes, pipelines, or mains; or (iii) the treatment of
5water for wholesale or retail sale that is delivered to
6customers through pipes, pipelines, or mains. The provisions
7of Public Act 98-583 are declaratory of existing law as to the
8meaning and scope of this exemption. Beginning on July 1,
92017, the exemption provided by this paragraph (18) includes,
10but is not limited to, graphic arts machinery and equipment,
11as defined in paragraph (6) of this Section.
12    (19) Personal property delivered to a purchaser or
13purchaser's donee inside Illinois when the purchase order for
14that personal property was received by a florist located
15outside Illinois who has a florist located inside Illinois
16deliver the personal property.
17    (20) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (21) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (21) is exempt from the
25provisions of Section 3-90, and the exemption provided for
26under this item (21) applies for all periods beginning May 30,

 

 

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11995, but no claim for credit or refund is allowed on or after
2January 1, 2008 for such taxes paid during the period
3beginning May 30, 2000 and ending on January 1, 2008.
4    (22) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients purchased by a
7lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time the lessor would
9otherwise be subject to the tax imposed by this Act, to a
10hospital 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 non-exempt 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 non-qualifying 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.

 

 

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

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (25) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is used in
9the performance of infrastructure repairs in this State,
10including but not limited to municipal roads and streets,
11access roads, bridges, sidewalks, waste disposal systems,
12water and sewer line extensions, water distribution and
13purification facilities, storm water drainage and retention
14facilities, and sewage treatment facilities, resulting from a
15State or federally declared disaster in Illinois or bordering
16Illinois when such repairs are initiated on facilities located
17in the declared disaster area within 6 months after the
18disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-90.
23    (27) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the

 

 

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

 

 

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1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-90.
4    (29) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and
7other items, and replacement parts for these machines.
8Beginning January 1, 2002 and through June 30, 2003, machines
9and parts for machines used in commercial, coin-operated
10amusement and vending business if a use or occupation tax is
11paid on the gross receipts derived from the use of the
12commercial, coin-operated amusement and vending machines. This
13paragraph is exempt from the provisions of Section 3-90.
14    (30) Beginning January 1, 2001 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages,
17soft drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

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

 

 

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1Public Act 92-227), personal property purchased by a lessor
2who leases the property, under a lease of one year or longer
3executed or in effect at the time the lessor would otherwise be
4subject to the tax imposed by this Act, to a governmental body
5that has been issued an active sales tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the property is leased
8in a manner that does not qualify for this exemption or used in
9any other nonexempt manner, the lessor shall be liable for the
10tax imposed under this Act or the Service Use Tax Act, as the
11case may be, based on the fair market value of the property at
12the time the nonqualifying use occurs. No lessor shall collect
13or attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Service Use Tax Act, as the case may be, if the tax
16has not been paid by the lessor. If a lessor improperly
17collects any such amount from the lessee, the lessee shall
18have a legal right to claim a refund of that amount from the
19lessor. If, however, that amount is not refunded to the lessee
20for any reason, the lessor is liable to pay that amount to the
21Department. This paragraph is exempt from the provisions of
22Section 3-90.
23    (33) On and after July 1, 2003 and through June 30, 2004,
24the use in this State of motor vehicles of the second division
25with a gross vehicle weight in excess of 8,000 pounds and that
26are subject to the commercial distribution fee imposed under

 

 

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1Section 3-815.1 of the Illinois Vehicle Code. Beginning on
2July 1, 2004 and through June 30, 2005, the use in this State
3of motor vehicles of the second division: (i) with a gross
4vehicle weight rating in excess of 8,000 pounds; (ii) that are
5subject to the commercial distribution fee imposed under
6Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
7are primarily used for commercial purposes. Through June 30,
82005, this exemption applies to repair and replacement parts
9added after the initial purchase of such a motor vehicle if
10that motor vehicle is used in a manner that would qualify for
11the rolling stock exemption otherwise provided for in this
12Act. For purposes of this paragraph, the term "used for
13commercial purposes" means the transportation of persons or
14property in furtherance of any commercial or industrial
15enterprise, whether for-hire or not.
16    (34) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued
21under Title IV of the Environmental Protection Act. This
22paragraph is exempt from the provisions of Section 3-90.
23    (35) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

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1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the use of qualifying tangible
13personal property by persons who modify, refurbish, complete,
14repair, replace, or maintain aircraft and who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part
22129 of the Federal Aviation Regulations. The changes made to
23this paragraph (35) by Public Act 98-534 are declarative of
24existing law. It is the intent of the General Assembly that the
25exemption under this paragraph (35) applies continuously from
26January 1, 2010 through December 31, 2024; however, no claim

 

 

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1for credit or refund is allowed for taxes paid as a result of
2the disallowance of this exemption on or after January 1, 2015
3and prior to the effective date of this amendatory Act of the
4101st General Assembly.
5    (36) Tangible personal property purchased by a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt
14instruments issued by the public-facilities corporation in
15connection with the development of the municipal convention
16hall. This exemption includes existing public-facilities
17corporations as provided in Section 11-65-25 of the Illinois
18Municipal Code. This paragraph is exempt from the provisions
19of Section 3-90.
20    (37) Beginning January 1, 2017, menstrual pads, tampons,
21and menstrual cups.
22    (38) Merchandise that is subject to the Rental Purchase
23Agreement Occupation and Use Tax. The purchaser must certify
24that the item is purchased to be rented subject to a rental
25purchase agreement, as defined in the Rental Purchase
26Agreement Act, and provide proof of registration under the

 

 

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1Rental Purchase Agreement Occupation and Use Tax Act. This
2paragraph is exempt from the provisions of Section 3-90.
3    (39) Tangible personal property purchased by a purchaser
4who is exempt from the tax imposed by this Act by operation of
5federal law. This paragraph is exempt from the provisions of
6Section 3-90.
7    (40) Qualified tangible personal property used in the
8construction or operation of a data center that has been
9granted a certificate of exemption by the Department of
10Commerce and Economic Opportunity, whether that tangible
11personal property is purchased by the owner, operator, or
12tenant of the data center or by a contractor or subcontractor
13of the owner, operator, or tenant. Data centers that would
14have qualified for a certificate of exemption prior to January
151, 2020 had Public Act 101-31 been in effect may apply for and
16obtain an exemption for subsequent purchases of computer
17equipment or enabling software purchased or leased to upgrade,
18supplement, or replace computer equipment or enabling software
19purchased or leased in the original investment that would have
20qualified.
21    The Department of Commerce and Economic Opportunity shall
22grant a certificate of exemption under this item (40) to
23qualified data centers as defined by Section 605-1025 of the
24Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    For the purposes of this item (40):

 

 

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

 

 

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1    incorporated in to the qualifying data center. To document
2    the exemption allowed under this Section, the retailer
3    must obtain from the purchaser a copy of the certificate
4    of eligibility issued by the Department of Commerce and
5    Economic Opportunity.
6    This item (40) is exempt from the provisions of Section
73-90.
8    (41) Tangible personal property for which a certificate of
9exemption has been issued under Section 2505-805 of the
10Department of Revenue Law of the Civil Administrative Code of
11Illinois. This paragraph is exempt from the provisions of
12Section 3-90.
13(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;
14100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
151-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
167-12-19; 101-629, eff. 2-5-20.)
 
17    Section 15. The Service Use Tax Act is amended by changing
18Section 3-5 as follows:
 
19    (35 ILCS 110/3-5)
20    Sec. 3-5. Exemptions. Use of the following tangible
21personal property is exempt from the tax imposed by this Act:
22    (1) Personal property purchased from a corporation,
23society, association, foundation, institution, or
24organization, other than a limited liability company, that is

 

 

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

 

 

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1    (5) Until July 1, 2003 and beginning again on September 1,
22004 through August 30, 2014, graphic arts machinery and
3equipment, including repair and replacement parts, both new
4and used, and including that manufactured on special order or
5purchased for lease, certified by the purchaser to be used
6primarily for graphic arts production. Equipment includes
7chemicals or chemicals acting as catalysts but only if the
8chemicals or chemicals acting as catalysts effect a direct and
9immediate change upon a graphic arts product. Beginning on
10July 1, 2017, graphic arts machinery and equipment is included
11in the manufacturing and assembling machinery and equipment
12exemption under Section 2 of this Act.
13    (6) Personal property purchased from a teacher-sponsored
14student organization affiliated with an elementary or
15secondary school located in Illinois.
16    (7) Farm machinery and equipment, both new and used,
17including that manufactured on special order, certified by the
18purchaser to be used primarily for production agriculture or
19State or federal agricultural programs, including individual
20replacement parts for the machinery and equipment, including
21machinery and equipment purchased for lease, and including
22implements of husbandry defined in Section 1-130 of the
23Illinois Vehicle Code, farm machinery and agricultural
24chemical and fertilizer spreaders, and nurse wagons required
25to be registered under Section 3-809 of the Illinois Vehicle
26Code, but excluding other motor vehicles required to be

 

 

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1registered under the Illinois Vehicle Code. Horticultural
2polyhouses or hoop houses used for propagating, growing, or
3overwintering plants shall be considered farm machinery and
4equipment under this item (7). Agricultural chemical tender
5tanks and dry boxes shall include units sold separately from a
6motor vehicle required to be licensed and units sold mounted
7on a motor vehicle required to be licensed if the selling price
8of the tender is separately stated.
9    Farm machinery and equipment shall include precision
10farming equipment that is installed or purchased to be
11installed on farm machinery and equipment including, but not
12limited to, tractors, harvesters, sprayers, planters, seeders,
13or spreaders. Precision farming equipment includes, but is not
14limited to, soil testing sensors, computers, monitors,
15software, global positioning and mapping systems, and other
16such equipment.
17    Farm machinery and equipment also includes computers,
18sensors, software, and related equipment used primarily in the
19computer-assisted operation of production agriculture
20facilities, equipment, and activities such as, but not limited
21to, the collection, monitoring, and correlation of animal and
22crop data for the purpose of formulating animal diets and
23agricultural chemicals. This item (7) is exempt from the
24provisions of Section 3-75.
25    (8) Until June 30, 2013, fuel and petroleum products sold
26to or used by an air common carrier, certified by the carrier

 

 

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

 

 

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1rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
2pipe and tubular goods, including casing and drill strings,
3(iii) pumps and pump-jack units, (iv) storage tanks and flow
4lines, (v) any individual replacement part for oil field
5exploration, drilling, and production equipment, and (vi)
6machinery and equipment purchased for lease; but excluding
7motor vehicles required to be registered under the Illinois
8Vehicle Code.
9    (11) Proceeds from the sale of photoprocessing machinery
10and equipment, including repair and replacement parts, both
11new and used, including that manufactured on special order,
12certified by the purchaser to be used primarily for
13photoprocessing, and including photoprocessing machinery and
14equipment purchased for lease.
15    (12) Until July 1, 2023, coal and aggregate exploration,
16mining, off-highway hauling, processing, maintenance, and
17reclamation equipment, including replacement parts and
18equipment, and including equipment purchased for lease, but
19excluding motor vehicles required to be registered under the
20Illinois Vehicle Code. The changes made to this Section by
21Public Act 97-767 apply on and after July 1, 2003, but no claim
22for credit or refund is allowed on or after August 16, 2013
23(the effective date of Public Act 98-456) for such taxes paid
24during the period beginning July 1, 2003 and ending on August
2516, 2013 (the effective date of Public Act 98-456).
26    (13) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (14) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (14) is exempt from the
8provisions of Section 3-75, and the exemption provided for
9under this item (14) applies for all periods beginning May 30,
101995, but no claim for credit or refund is allowed on or after
11January 1, 2008 (the effective date of Public Act 95-88) for
12such taxes paid during the period beginning May 30, 2000 and
13ending on January 1, 2008 (the effective date of Public Act
1495-88).
15    (15) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients purchased by a
18lessor who leases the equipment, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21hospital 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 non-exempt manner, the lessor shall be liable for
26the tax imposed under this Act or the Use Tax Act, as the case

 

 

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

 

 

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

 

 

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1in the declared disaster area within 6 months after the
2disaster.
3    (19) Beginning July 1, 1999, game or game birds purchased
4at a "game breeding and hunting preserve area" as that term is
5used in the Wildlife Code. This paragraph is exempt from the
6provisions of Section 3-75.
7    (20) A motor vehicle, as that term is defined in Section
81-146 of the Illinois Vehicle Code, that is donated to a
9corporation, limited liability company, society, association,
10foundation, or institution that is determined by the
11Department to be organized and operated exclusively for
12educational purposes. For purposes of this exemption, "a
13corporation, limited liability company, society, association,
14foundation, or institution organized and operated exclusively
15for educational purposes" means all tax-supported public
16schools, private schools that offer systematic instruction in
17useful branches of learning by methods common to public
18schools and that compare favorably in their scope and
19intensity with the course of study presented in tax-supported
20schools, and vocational or technical schools or institutes
21organized and operated exclusively to provide a course of
22study of not less than 6 weeks duration and designed to prepare
23individuals to follow a trade or to pursue a manual,
24technical, mechanical, industrial, business, or commercial
25occupation.
26    (21) Beginning January 1, 2000, personal property,

 

 

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1including food, purchased through fundraising events for the
2benefit of a public or private elementary or secondary school,
3a group of those schools, or one or more school districts if
4the events are sponsored by an entity recognized by the school
5district that consists primarily of volunteers and includes
6parents and teachers of the school children. This paragraph
7does not apply to fundraising events (i) for the benefit of
8private home instruction or (ii) for which the fundraising
9entity purchases the personal property sold at the events from
10another individual or entity that sold the property for the
11purpose of resale by the fundraising entity and that profits
12from the sale to the fundraising entity. This paragraph is
13exempt from the provisions of Section 3-75.
14    (22) Beginning January 1, 2000 and through December 31,
152001, new or used automatic vending machines that prepare and
16serve hot food and beverages, including coffee, soup, and
17other items, and replacement parts for these machines.
18Beginning January 1, 2002 and through June 30, 2003, machines
19and parts for machines used in commercial, coin-operated
20amusement and vending business if a use or occupation tax is
21paid on the gross receipts derived from the use of the
22commercial, coin-operated amusement and vending machines. This
23paragraph is exempt from the provisions of Section 3-75.
24    (23) Beginning August 23, 2001 and through June 30, 2016,
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages,

 

 

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1soft drinks, and food that has been prepared for immediate
2consumption) and prescription and nonprescription medicines,
3drugs, medical appliances, and insulin, urine testing
4materials, syringes, and needles used by diabetics, for human
5use, when purchased for use by a person receiving medical
6assistance under Article V of the Illinois Public Aid Code who
7resides in a licensed long-term care facility, as defined in
8the Nursing Home Care Act, or in a licensed facility as defined
9in the ID/DD Community Care Act, the MC/DD Act, or the
10Specialized Mental Health Rehabilitation Act of 2013.
11    (24) Beginning on August 2, 2001 (the effective date of
12Public Act 92-227), computers and communications equipment
13utilized for any hospital purpose and equipment used in the
14diagnosis, analysis, or treatment of hospital patients
15purchased by a lessor who leases the equipment, under a lease
16of one year or longer executed or in effect at the time the
17lessor would otherwise be subject to the tax imposed by this
18Act, to a hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of
20the Retailers' Occupation Tax Act. If the equipment is leased
21in a manner that does not qualify for this exemption or is used
22in any other nonexempt manner, the lessor shall be liable for
23the tax imposed under this Act or the Use Tax Act, as the case
24may be, based on the fair market value of the property at the
25time the nonqualifying use occurs. No lessor shall collect or
26attempt to collect an amount (however designated) that

 

 

HB3000- 35 -LRB102 14915 HLH 20270 b

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

 

 

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

 

 

HB3000- 37 -LRB102 14915 HLH 20270 b

1cleaning solution, latex gloves, and protective films. This
2exemption applies only to the use of qualifying tangible
3personal property transferred incident to the modification,
4refurbishment, completion, replacement, repair, or maintenance
5of aircraft by persons who (i) hold an Air Agency Certificate
6and are empowered to operate an approved repair station by the
7Federal Aviation Administration, (ii) have a Class IV Rating,
8and (iii) conduct operations in accordance with Part 145 of
9the Federal Aviation Regulations. The exemption does not
10include aircraft operated by a commercial air carrier
11providing scheduled passenger air service pursuant to
12authority issued under Part 121 or Part 129 of the Federal
13Aviation Regulations. The changes made to this paragraph (27)
14by Public Act 98-534 are declarative of existing law. It is the
15intent of the General Assembly that the exemption under this
16paragraph (27) applies continuously from January 1, 2010
17through December 31, 2024; however, no claim for credit or
18refund is allowed for taxes paid as a result of the
19disallowance of this exemption on or after January 1, 2015 and
20prior to the effective date of this amendatory Act of the 101st
21General Assembly.
22    (28) Tangible personal property purchased by a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt
5instruments issued by the public-facilities corporation in
6connection with the development of the municipal convention
7hall. This exemption includes existing public-facilities
8corporations as provided in Section 11-65-25 of the Illinois
9Municipal Code. This paragraph is exempt from the provisions
10of Section 3-75.
11    (29) Beginning January 1, 2017, menstrual pads, tampons,
12and menstrual cups.
13    (30) Tangible personal property transferred to a purchaser
14who is exempt from the tax imposed by this Act by operation of
15federal law. This paragraph is exempt from the provisions of
16Section 3-75.
17    (31) Qualified tangible personal property used in the
18construction or operation of a data center that has been
19granted a certificate of exemption by the Department of
20Commerce and Economic Opportunity, whether that tangible
21personal property is purchased by the owner, operator, or
22tenant of the data center or by a contractor or subcontractor
23of the owner, operator, or tenant. Data centers that would
24have qualified for a certificate of exemption prior to January
251, 2020 had this amendatory Act of the 101st General Assembly
26been in effect, may apply for and obtain an exemption for

 

 

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1subsequent purchases of computer equipment or enabling
2software purchased or leased to upgrade, supplement, or
3replace computer equipment or enabling software purchased or
4leased in the original investment that would have qualified.
5    The Department of Commerce and Economic Opportunity shall
6grant a certificate of exemption under this item (31) to
7qualified data centers as defined by Section 605-1025 of the
8Department of Commerce and Economic Opportunity Law of the
9Civil Administrative Code of Illinois.
10    For the purposes of this item (31):
11        "Data center" means a building or a series of
12    buildings rehabilitated or constructed to house working
13    servers in one physical location or multiple sites within
14    the State of Illinois.
15        "Qualified tangible personal property" means:
16    electrical systems and equipment; climate control and
17    chilling equipment and systems; mechanical systems and
18    equipment; monitoring and secure systems; emergency
19    generators; hardware; computers; servers; data storage
20    devices; network connectivity equipment; racks; cabinets;
21    telecommunications cabling infrastructure; raised floor
22    systems; peripheral components or systems; software;
23    mechanical, electrical, or plumbing systems; battery
24    systems; cooling systems and towers; temperature control
25    systems; other cabling; and other data center
26    infrastructure equipment and systems necessary to operate

 

 

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1    qualified tangible personal property, including fixtures;
2    and component parts of any of the foregoing, including
3    installation, maintenance, repair, refurbishment, and
4    replacement of qualified tangible personal property to
5    generate, transform, transmit, distribute, or manage
6    electricity necessary to operate qualified tangible
7    personal property; and all other tangible personal
8    property that is essential to the operations of a computer
9    data center. The term "qualified tangible personal
10    property" also includes building materials physically
11    incorporated in to the qualifying data center. To document
12    the exemption allowed under this Section, the retailer
13    must obtain from the purchaser a copy of the certificate
14    of eligibility issued by the Department of Commerce and
15    Economic Opportunity.
16    This item (31) is exempt from the provisions of Section
173-75.
18    (32) Tangible personal property for which a certificate of
19exemption has been issued under Section 2505-805 of the
20Department of Revenue Law of the Civil Administrative Code of
21Illinois. This paragraph is exempt from the provisions of
22Section 3-75.
23(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
24100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
257-12-19; 101-629, eff. 2-5-20.)
 

 

 

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1    Section 20. The Service Occupation Tax Act is amended by
2changing Section 3-5 as follows:
 
3    (35 ILCS 115/3-5)
4    Sec. 3-5. Exemptions. The following tangible personal
5property is exempt from the tax imposed by this Act:
6    (1) Personal property sold by a corporation, society,
7association, foundation, institution, or organization, other
8than a limited liability company, that is organized and
9operated as a not-for-profit service enterprise for the
10benefit of persons 65 years of age or older if the personal
11property was not purchased by the enterprise for the purpose
12of resale by the enterprise.
13    (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16    (3) Personal property purchased by any not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service
25organizations, local arts councils, visual arts organizations,

 

 

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1and media arts organizations. On and after July 1, 2001 (the
2effective date of Public Act 92-35), however, an entity
3otherwise eligible for this exemption shall not make tax-free
4purchases unless it has an active identification number issued
5by the Department.
6    (4) Legal tender, currency, medallions, or gold or silver
7coinage issued by the State of Illinois, the government of the
8United States of America, or the government of any foreign
9country, and bullion.
10    (5) Until July 1, 2003 and beginning again on September 1,
112004 through August 30, 2014, graphic arts machinery and
12equipment, including repair and replacement parts, both new
13and used, and including that manufactured on special order or
14purchased for lease, certified by the purchaser to be used
15primarily for graphic arts production. Equipment includes
16chemicals or chemicals acting as catalysts but only if the
17chemicals or chemicals acting as catalysts effect a direct and
18immediate change upon a graphic arts product. Beginning on
19July 1, 2017, graphic arts machinery and equipment is included
20in the manufacturing and assembling machinery and equipment
21exemption under Section 2 of this Act.
22    (6) Personal property sold by a teacher-sponsored student
23organization affiliated with an elementary or secondary school
24located in Illinois.
25    (7) Farm machinery and equipment, both new and used,
26including that manufactured on special order, certified by the

 

 

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

 

 

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

 

 

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1food and beverages, to the extent that the proceeds of the
2service charge are in fact turned over as tips or as a
3substitute for tips to the employees who participate directly
4in preparing, serving, hosting or cleaning up the food or
5beverage function with respect to which the service charge is
6imposed.
7    (10) Until July 1, 2003, oil field exploration, drilling,
8and production equipment, including (i) rigs and parts of
9rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
10pipe and tubular goods, including casing and drill strings,
11(iii) pumps and pump-jack units, (iv) storage tanks and flow
12lines, (v) any individual replacement part for oil field
13exploration, drilling, and production equipment, and (vi)
14machinery and equipment purchased for lease; but excluding
15motor vehicles required to be registered under the Illinois
16Vehicle Code.
17    (11) Photoprocessing machinery and equipment, including
18repair and replacement parts, both new and used, including
19that manufactured on special order, certified by the purchaser
20to be used primarily for photoprocessing, and including
21photoprocessing machinery and equipment purchased for lease.
22    (12) Until July 1, 2023, coal and aggregate exploration,
23mining, off-highway hauling, processing, maintenance, and
24reclamation equipment, including replacement parts and
25equipment, and including equipment purchased for lease, but
26excluding motor vehicles required to be registered under the

 

 

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1Illinois Vehicle Code. The changes made to this Section by
2Public Act 97-767 apply on and after July 1, 2003, but no claim
3for credit or refund is allowed on or after August 16, 2013
4(the effective date of Public Act 98-456) for such taxes paid
5during the period beginning July 1, 2003 and ending on August
616, 2013 (the effective date of Public Act 98-456).
7    (13) Beginning January 1, 1992 and through June 30, 2016,
8food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages,
10soft drinks and food that has been prepared for immediate
11consumption) and prescription and non-prescription medicines,
12drugs, medical appliances, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, when purchased for use by a person receiving medical
15assistance under Article V of the Illinois Public Aid Code who
16resides in a licensed long-term care facility, as defined in
17the Nursing Home Care Act, or in a licensed facility as defined
18in the ID/DD Community Care Act, the MC/DD Act, or the
19Specialized Mental Health Rehabilitation Act of 2013.
20    (14) Semen used for artificial insemination of livestock
21for direct agricultural production.
22    (15) Horses, or interests in horses, registered with and
23meeting the requirements of any of the Arabian Horse Club
24Registry of America, Appaloosa Horse Club, American Quarter
25Horse Association, United States Trotting Association, or
26Jockey Club, as appropriate, used for purposes of breeding or

 

 

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1racing for prizes. This item (15) is exempt from the
2provisions of Section 3-55, and the exemption provided for
3under this item (15) applies for all periods beginning May 30,
41995, but no claim for credit or refund is allowed on or after
5January 1, 2008 (the effective date of Public Act 95-88) for
6such taxes paid during the period beginning May 30, 2000 and
7ending on January 1, 2008 (the effective date of Public Act
895-88).
9    (16) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients sold to a lessor
12who leases the equipment, under a lease of one year or longer
13executed or in effect at the time of the purchase, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act.
17    (17) Personal property sold to a lessor who leases the
18property, under a lease of one year or longer executed or in
19effect at the time of the purchase, to a governmental body that
20has been issued an active tax exemption identification number
21by the Department under Section 1g of the Retailers'
22Occupation Tax Act.
23    (18) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is donated
26for disaster relief to be used in a State or federally declared

 

 

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1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (19) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in
10the performance of infrastructure repairs in this State,
11including but not limited to municipal roads and streets,
12access roads, bridges, sidewalks, waste disposal systems,
13water and sewer line extensions, water distribution and
14purification facilities, storm water drainage and retention
15facilities, and sewage treatment facilities, resulting from a
16State or federally declared disaster in Illinois or bordering
17Illinois when such repairs are initiated on facilities located
18in the declared disaster area within 6 months after the
19disaster.
20    (20) Beginning July 1, 1999, game or game birds sold at a
21"game breeding and hunting preserve area" as that term is used
22in the Wildlife Code. This paragraph is exempt from the
23provisions of Section 3-55.
24    (21) A motor vehicle, as that term is defined in Section
251-146 of the Illinois Vehicle Code, that is donated to a
26corporation, limited liability company, society, association,

 

 

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

 

 

HB3000- 50 -LRB102 14915 HLH 20270 b

1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-55.
5    (23) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and
8other items, and replacement parts for these machines.
9Beginning January 1, 2002 and through June 30, 2003, machines
10and parts for machines used in commercial, coin-operated
11amusement and vending business if a use or occupation tax is
12paid on the gross receipts derived from the use of the
13commercial, coin-operated amusement and vending machines. This
14paragraph is exempt from the provisions of Section 3-55.
15    (24) Beginning on August 2, 2001 (the effective date of
16Public Act 92-227), computers and communications equipment
17utilized for any hospital purpose and equipment used in the
18diagnosis, analysis, or treatment of hospital patients sold to
19a lessor who leases the equipment, under a lease of one year or
20longer executed or in effect at the time of the purchase, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23the Retailers' Occupation Tax Act. This paragraph is exempt
24from the provisions of Section 3-55.
25    (25) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), personal property sold to a lessor who

 

 

HB3000- 51 -LRB102 14915 HLH 20270 b

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

 

 

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

 

 

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1December 31, 2024, materials, parts, equipment, components,
2and furnishings incorporated into or upon an aircraft as part
3of the modification, refurbishment, completion, replacement,
4repair, or maintenance of the aircraft. This exemption
5includes consumable supplies used in the modification,
6refurbishment, completion, replacement, repair, and
7maintenance of aircraft, but excludes any materials, parts,
8equipment, components, and consumable supplies used in the
9modification, replacement, repair, and maintenance of aircraft
10engines or power plants, whether such engines or power plants
11are installed or uninstalled upon any such aircraft.
12"Consumable supplies" include, but are not limited to,
13adhesive, tape, sandpaper, general purpose lubricants,
14cleaning solution, latex gloves, and protective films. This
15exemption applies only to the transfer of qualifying tangible
16personal property incident to the modification, refurbishment,
17completion, replacement, repair, or maintenance of an aircraft
18by persons who (i) hold an Air Agency Certificate and are
19empowered to operate an approved repair station by the Federal
20Aviation Administration, (ii) have a Class IV Rating, and
21(iii) conduct operations in accordance with Part 145 of the
22Federal Aviation Regulations. The exemption does not include
23aircraft operated by a commercial air carrier providing
24scheduled passenger air service pursuant to authority issued
25under Part 121 or Part 129 of the Federal Aviation
26Regulations. The changes made to this paragraph (29) by Public

 

 

HB3000- 54 -LRB102 14915 HLH 20270 b

1Act 98-534 are declarative of existing law. It is the intent of
2the General Assembly that the exemption under this paragraph
3(29) applies continuously from January 1, 2010 through
4December 31, 2024; however, no claim for credit or refund is
5allowed for taxes paid as a result of the disallowance of this
6exemption on or after January 1, 2015 and prior to the
7effective date of this amendatory Act of the 101st General
8Assembly.
9    (30) Beginning January 1, 2017, menstrual pads, tampons,
10and menstrual cups.
11    (31) Tangible personal property transferred to a purchaser
12who is exempt from tax by operation of federal law. This
13paragraph is exempt from the provisions of Section 3-55.
14    (32) Qualified tangible personal property used in the
15construction or operation of a data center that has been
16granted a certificate of exemption by the Department of
17Commerce and Economic Opportunity, whether that tangible
18personal property is purchased by the owner, operator, or
19tenant of the data center or by a contractor or subcontractor
20of the owner, operator, or tenant. Data centers that would
21have qualified for a certificate of exemption prior to January
221, 2020 had this amendatory Act of the 101st General Assembly
23been in effect, may apply for and obtain an exemption for
24subsequent purchases of computer equipment or enabling
25software purchased or leased to upgrade, supplement, or
26replace computer equipment or enabling software purchased or

 

 

HB3000- 55 -LRB102 14915 HLH 20270 b

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

 

 

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1    replacement of qualified tangible personal property to
2    generate, transform, transmit, distribute, or manage
3    electricity necessary to operate qualified tangible
4    personal property; and all other tangible personal
5    property that is essential to the operations of a computer
6    data center. The term "qualified tangible personal
7    property" also includes building materials physically
8    incorporated in to the qualifying data center. To document
9    the exemption allowed under this Section, the retailer
10    must obtain from the purchaser a copy of the certificate
11    of eligibility issued by the Department of Commerce and
12    Economic Opportunity.
13    This item (32) is exempt from the provisions of Section
143-55.
15    (33) Tangible personal property for which a certificate of
16exemption has been issued under Section 2505-805 of the
17Department of Revenue Law of the Civil Administrative Code of
18Illinois. This paragraph is exempt from the provisions of
19Section 3-55.
20(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
21100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
227-12-19; 101-629, eff. 2-5-20.)
 
23    Section 25. The Retailers' Occupation Tax Act is amended
24by changing Section 2-5 as follows:
 

 

 

HB3000- 57 -LRB102 14915 HLH 20270 b

1    (35 ILCS 120/2-5)
2    Sec. 2-5. Exemptions. Gross receipts from proceeds from
3the sale of the following tangible personal property are
4exempt from the tax imposed by this Act:
5        (1) Farm chemicals.
6        (2) Farm machinery and equipment, both new and used,
7    including that manufactured on special order, certified by
8    the purchaser to be used primarily for production
9    agriculture or State or federal agricultural programs,
10    including individual replacement parts for the machinery
11    and equipment, including machinery and equipment purchased
12    for lease, and including implements of husbandry defined
13    in Section 1-130 of the Illinois Vehicle Code, farm
14    machinery and agricultural chemical and fertilizer
15    spreaders, and nurse wagons required to be registered
16    under Section 3-809 of the Illinois Vehicle Code, but
17    excluding other motor vehicles required to be registered
18    under the Illinois Vehicle Code. Horticultural polyhouses
19    or hoop houses used for propagating, growing, or
20    overwintering plants shall be considered farm machinery
21    and equipment under this item (2). Agricultural chemical
22    tender tanks and dry boxes shall include units sold
23    separately from a motor vehicle required to be licensed
24    and units sold mounted on a motor vehicle required to be
25    licensed, if the selling price of the tender is separately
26    stated.

 

 

HB3000- 58 -LRB102 14915 HLH 20270 b

1        Farm machinery and equipment shall include precision
2    farming equipment that is installed or purchased to be
3    installed on farm machinery and equipment including, but
4    not limited to, tractors, harvesters, sprayers, planters,
5    seeders, or spreaders. Precision farming equipment
6    includes, but is not limited to, soil testing sensors,
7    computers, monitors, software, global positioning and
8    mapping systems, and other such equipment.
9        Farm machinery and equipment also includes computers,
10    sensors, software, and related equipment used primarily in
11    the computer-assisted operation of production agriculture
12    facilities, equipment, and activities such as, but not
13    limited to, the collection, monitoring, and correlation of
14    animal and crop data for the purpose of formulating animal
15    diets and agricultural chemicals. This item (2) is exempt
16    from the provisions of Section 2-70.
17        (3) Until July 1, 2003, distillation machinery and
18    equipment, sold as a unit or kit, assembled or installed
19    by the retailer, certified by the user to be used only for
20    the production of ethyl alcohol that will be used for
21    consumption as motor fuel or as a component of motor fuel
22    for the personal use of the user, and not subject to sale
23    or resale.
24        (4) Until July 1, 2003 and beginning again September
25    1, 2004 through August 30, 2014, graphic arts machinery
26    and equipment, including repair and replacement parts,

 

 

HB3000- 59 -LRB102 14915 HLH 20270 b

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

 

 

HB3000- 60 -LRB102 14915 HLH 20270 b

1    exemption under Section 501(c)(3) of the Internal Revenue
2    Code and that is organized and operated primarily for the
3    presentation or support of arts or cultural programming,
4    activities, or services. These organizations include, but
5    are not limited to, music and dramatic arts organizations
6    such as symphony orchestras and theatrical groups, arts
7    and cultural service organizations, local arts councils,
8    visual arts organizations, and media arts organizations.
9    On and after July 1, 2001 (the effective date of Public Act
10    92-35), however, an entity otherwise eligible for this
11    exemption shall not make tax-free purchases unless it has
12    an active identification number issued by the Department.
13        (10) Personal property sold by a corporation, society,
14    association, foundation, institution, or organization,
15    other than a limited liability company, that is organized
16    and operated as a not-for-profit service enterprise for
17    the benefit of persons 65 years of age or older if the
18    personal property was not purchased by the enterprise for
19    the purpose of resale by the enterprise.
20        (11) Personal property sold to a governmental body, to
21    a corporation, society, association, foundation, or
22    institution organized and operated exclusively for
23    charitable, religious, or educational purposes, or to a
24    not-for-profit corporation, society, association,
25    foundation, institution, or organization that has no
26    compensated officers or employees and that is organized

 

 

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1    and operated primarily for the recreation of persons 55
2    years of age or older. A limited liability company may
3    qualify for the exemption under this paragraph only if the
4    limited liability company is organized and operated
5    exclusively for educational purposes. On and after July 1,
6    1987, however, no entity otherwise eligible for this
7    exemption shall make tax-free purchases unless it has an
8    active identification number issued by the Department.
9        (12) (Blank).
10        (12-5) On and after July 1, 2003 and through June 30,
11    2004, motor vehicles of the second division with a gross
12    vehicle weight in excess of 8,000 pounds that are subject
13    to the commercial distribution fee imposed under Section
14    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
15    2004 and through June 30, 2005, the use in this State of
16    motor vehicles of the second division: (i) with a gross
17    vehicle weight rating in excess of 8,000 pounds; (ii) that
18    are subject to the commercial distribution fee imposed
19    under Section 3-815.1 of the Illinois Vehicle Code; and
20    (iii) that are primarily used for commercial purposes.
21    Through June 30, 2005, this exemption applies to repair
22    and replacement parts added after the initial purchase of
23    such a motor vehicle if that motor vehicle is used in a
24    manner that would qualify for the rolling stock exemption
25    otherwise provided for in this Act. For purposes of this
26    paragraph, "used for commercial purposes" means the

 

 

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1    transportation of persons or property in furtherance of
2    any commercial or industrial enterprise whether for-hire
3    or not.
4        (13) Proceeds from sales to owners, lessors, or
5    shippers of tangible personal property that is utilized by
6    interstate carriers for hire for use as rolling stock
7    moving in interstate commerce and equipment operated by a
8    telecommunications provider, licensed as a common carrier
9    by the Federal Communications Commission, which is
10    permanently installed in or affixed to aircraft moving in
11    interstate commerce.
12        (14) Machinery and equipment that will be used by the
13    purchaser, or a lessee of the purchaser, primarily in the
14    process of manufacturing or assembling tangible personal
15    property for wholesale or retail sale or lease, whether
16    the sale or lease is made directly by the manufacturer or
17    by some other person, whether the materials used in the
18    process are owned by the manufacturer or some other
19    person, or whether the sale or lease is made apart from or
20    as an incident to the seller's engaging in the service
21    occupation of producing machines, tools, dies, jigs,
22    patterns, gauges, or other similar items of no commercial
23    value on special order for a particular purchaser. The
24    exemption provided by this paragraph (14) does not include
25    machinery and equipment used in (i) the generation of
26    electricity for wholesale or retail sale; (ii) the

 

 

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1    generation or treatment of natural or artificial gas for
2    wholesale or retail sale that is delivered to customers
3    through pipes, pipelines, or mains; or (iii) the treatment
4    of water for wholesale or retail sale that is delivered to
5    customers through pipes, pipelines, or mains. The
6    provisions of Public Act 98-583 are declaratory of
7    existing law as to the meaning and scope of this
8    exemption. Beginning on July 1, 2017, the exemption
9    provided by this paragraph (14) includes, but is not
10    limited to, graphic arts machinery and equipment, as
11    defined in paragraph (4) of this Section.
12        (15) Proceeds of mandatory service charges separately
13    stated on customers' bills for purchase and consumption of
14    food and beverages, to the extent that the proceeds of the
15    service charge are in fact turned over as tips or as a
16    substitute for tips to the employees who participate
17    directly in preparing, serving, hosting or cleaning up the
18    food or beverage function with respect to which the
19    service charge is imposed.
20        (16) Tangible personal property sold to a purchaser if
21    the purchaser is exempt from use tax by operation of
22    federal law. This paragraph is exempt from the provisions
23    of Section 2-70.
24        (17) Tangible personal property sold to a common
25    carrier by rail or motor that receives the physical
26    possession of the property in Illinois and that transports

 

 

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1    the property, or shares with another common carrier in the
2    transportation of the property, out of Illinois on a
3    standard uniform bill of lading showing the seller of the
4    property as the shipper or consignor of the property to a
5    destination outside Illinois, for use outside Illinois.
6        (18) Legal tender, currency, medallions, or gold or
7    silver coinage issued by the State of Illinois, the
8    government of the United States of America, or the
9    government of any foreign country, and bullion.
10        (19) Until July 1, 2003, oil field exploration,
11    drilling, and production equipment, including (i) rigs and
12    parts of rigs, rotary rigs, cable tool rigs, and workover
13    rigs, (ii) pipe and tubular goods, including casing and
14    drill strings, (iii) pumps and pump-jack units, (iv)
15    storage tanks and flow lines, (v) any individual
16    replacement part for oil field exploration, drilling, and
17    production equipment, and (vi) machinery and equipment
18    purchased for lease; but excluding motor vehicles required
19    to be registered under the Illinois Vehicle Code.
20        (20) Photoprocessing machinery and equipment,
21    including repair and replacement parts, both new and used,
22    including that manufactured on special order, certified by
23    the purchaser to be used primarily for photoprocessing,
24    and including photoprocessing machinery and equipment
25    purchased for lease.
26        (21) Until July 1, 2023, coal and aggregate

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (the effective date of Public Act 95-88) for such taxes
2    paid during the period beginning May 30, 2000 and ending
3    on January 1, 2008 (the effective date of Public Act
4    95-88).
5        (28) Computers and communications equipment utilized
6    for any hospital purpose and equipment used in the
7    diagnosis, analysis, or treatment of hospital patients
8    sold to a lessor who leases the equipment, under a lease of
9    one year or longer executed or in effect at the time of the
10    purchase, to a hospital that has been issued an active tax
11    exemption identification number by the Department under
12    Section 1g of this Act.
13        (29) Personal property sold to a lessor who leases the
14    property, under a lease of one year or longer executed or
15    in effect at the time of the purchase, to a governmental
16    body that has been issued an active tax exemption
17    identification number by the Department under Section 1g
18    of this Act.
19        (30) Beginning with taxable years ending on or after
20    December 31, 1995 and ending with taxable years ending on
21    or before December 31, 2004, personal property that is
22    donated for disaster relief to be used in a State or
23    federally declared disaster area in Illinois or bordering
24    Illinois by a manufacturer or retailer that is registered
25    in this State to a corporation, society, association,
26    foundation, or institution that has been issued a sales

 

 

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1    tax exemption identification number by the Department that
2    assists victims of the disaster who reside within the
3    declared disaster area.
4        (31) Beginning with taxable years ending on or after
5    December 31, 1995 and ending with taxable years ending on
6    or before December 31, 2004, personal property that is
7    used in the performance of infrastructure repairs in this
8    State, including but not limited to municipal roads and
9    streets, access roads, bridges, sidewalks, waste disposal
10    systems, water and sewer line extensions, water
11    distribution and purification facilities, storm water
12    drainage and retention facilities, and sewage treatment
13    facilities, resulting from a State or federally declared
14    disaster in Illinois or bordering Illinois when such
15    repairs are initiated on facilities located in the
16    declared disaster area within 6 months after the disaster.
17        (32) Beginning July 1, 1999, game or game birds sold
18    at a "game breeding and hunting preserve area" as that
19    term is used in the Wildlife Code. This paragraph is
20    exempt from the provisions of Section 2-70.
21        (33) A motor vehicle, as that term is defined in
22    Section 1-146 of the Illinois Vehicle Code, that is
23    donated to a corporation, limited liability company,
24    society, association, foundation, or institution that is
25    determined by the Department to be organized and operated
26    exclusively for educational purposes. For purposes of this

 

 

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

 

 

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1    the purpose of resale by the fundraising entity and that
2    profits from the sale to the fundraising entity. This
3    paragraph is exempt from the provisions of Section 2-70.
4        (35) Beginning January 1, 2000 and through December
5    31, 2001, new or used automatic vending machines that
6    prepare and serve hot food and beverages, including
7    coffee, soup, and other items, and replacement parts for
8    these machines. Beginning January 1, 2002 and through June
9    30, 2003, machines and parts for machines used in
10    commercial, coin-operated amusement and vending business
11    if a use or occupation tax is paid on the gross receipts
12    derived from the use of the commercial, coin-operated
13    amusement and vending machines. This paragraph is exempt
14    from the provisions of Section 2-70.
15        (35-5) Beginning August 23, 2001 and through June 30,
16    2016, food for human consumption that is to be consumed
17    off the premises where it is sold (other than alcoholic
18    beverages, soft drinks, and food that has been prepared
19    for immediate consumption) and prescription and
20    nonprescription medicines, drugs, medical appliances, and
21    insulin, urine testing materials, syringes, and needles
22    used by diabetics, for human use, when purchased for use
23    by a person receiving medical assistance under Article V
24    of the Illinois Public Aid Code who resides in a licensed
25    long-term care facility, as defined in the Nursing Home
26    Care Act, or a licensed facility as defined in the ID/DD

 

 

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1    Community Care Act, the MC/DD Act, or the Specialized
2    Mental Health Rehabilitation Act of 2013.
3        (36) Beginning August 2, 2001, computers and
4    communications equipment utilized for any hospital purpose
5    and equipment used in the diagnosis, analysis, or
6    treatment of hospital patients sold to a lessor who leases
7    the equipment, under a lease of one year or longer
8    executed or in effect at the time of the purchase, to a
9    hospital that has been issued an active tax exemption
10    identification number by the Department under Section 1g
11    of this Act. This paragraph is exempt from the provisions
12    of Section 2-70.
13        (37) Beginning August 2, 2001, personal property sold
14    to a lessor who leases the property, under a lease of one
15    year or longer executed or in effect at the time of the
16    purchase, to a governmental body that has been issued an
17    active tax exemption identification number by the
18    Department under Section 1g of this Act. This paragraph is
19    exempt from the provisions of Section 2-70.
20        (38) Beginning on January 1, 2002 and through June 30,
21    2016, tangible personal property purchased from an
22    Illinois retailer by a taxpayer engaged in centralized
23    purchasing activities in Illinois who will, upon receipt
24    of the property in Illinois, temporarily store the
25    property in Illinois (i) for the purpose of subsequently
26    transporting it outside this State for use or consumption

 

 

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1    thereafter solely outside this State or (ii) for the
2    purpose of being processed, fabricated, or manufactured
3    into, attached to, or incorporated into other tangible
4    personal property to be transported outside this State and
5    thereafter used or consumed solely outside this State. The
6    Director of Revenue shall, pursuant to rules adopted in
7    accordance with the Illinois Administrative Procedure Act,
8    issue a permit to any taxpayer in good standing with the
9    Department who is eligible for the exemption under this
10    paragraph (38). The permit issued under this paragraph
11    (38) shall authorize the holder, to the extent and in the
12    manner specified in the rules adopted under this Act, to
13    purchase tangible personal property from a retailer exempt
14    from the taxes imposed by this Act. Taxpayers shall
15    maintain all necessary books and records to substantiate
16    the use and consumption of all such tangible personal
17    property outside of the State of Illinois.
18        (39) Beginning January 1, 2008, tangible personal
19    property used in the construction or maintenance of a
20    community water supply, as defined under Section 3.145 of
21    the Environmental Protection Act, that is operated by a
22    not-for-profit corporation that holds a valid water supply
23    permit issued under Title IV of the Environmental
24    Protection Act. This paragraph is exempt from the
25    provisions of Section 2-70.
26        (40) Beginning January 1, 2010 and continuing through

 

 

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1    December 31, 2024, materials, parts, equipment,
2    components, and furnishings incorporated into or upon an
3    aircraft as part of the modification, refurbishment,
4    completion, replacement, repair, or maintenance of the
5    aircraft. This exemption includes consumable supplies used
6    in the modification, refurbishment, completion,
7    replacement, repair, and maintenance of aircraft, but
8    excludes any materials, parts, equipment, components, and
9    consumable supplies used in the modification, replacement,
10    repair, and maintenance of aircraft engines or power
11    plants, whether such engines or power plants are installed
12    or uninstalled upon any such aircraft. "Consumable
13    supplies" include, but are not limited to, adhesive, tape,
14    sandpaper, general purpose lubricants, cleaning solution,
15    latex gloves, and protective films. This exemption applies
16    only to the sale of qualifying tangible personal property
17    to persons who modify, refurbish, complete, replace, or
18    maintain an aircraft and who (i) hold an Air Agency
19    Certificate and are empowered to operate an approved
20    repair station by the Federal Aviation Administration,
21    (ii) have a Class IV Rating, and (iii) conduct operations
22    in accordance with Part 145 of the Federal Aviation
23    Regulations. The exemption does not include aircraft
24    operated by a commercial air carrier providing scheduled
25    passenger air service pursuant to authority issued under
26    Part 121 or Part 129 of the Federal Aviation Regulations.

 

 

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1    The changes made to this paragraph (40) by Public Act
2    98-534 are declarative of existing law. It is the intent
3    of the General Assembly that the exemption under this
4    paragraph (40) applies continuously from January 1, 2010
5    through December 31, 2024; however, no claim for credit or
6    refund is allowed for taxes paid as a result of the
7    disallowance of this exemption on or after January 1, 2015
8    and prior to the effective date of this amendatory Act of
9    the 101st General Assembly.
10        (41) Tangible personal property sold to a
11    public-facilities corporation, as described in Section
12    11-65-10 of the Illinois Municipal Code, for purposes of
13    constructing or furnishing a municipal convention hall,
14    but only if the legal title to the municipal convention
15    hall is transferred to the municipality without any
16    further consideration by or on behalf of the municipality
17    at the time of the completion of the municipal convention
18    hall or upon the retirement or redemption of any bonds or
19    other debt instruments issued by the public-facilities
20    corporation in connection with the development of the
21    municipal convention hall. This exemption includes
22    existing public-facilities corporations as provided in
23    Section 11-65-25 of the Illinois Municipal Code. This
24    paragraph is exempt from the provisions of Section 2-70.
25        (42) Beginning January 1, 2017, menstrual pads,
26    tampons, and menstrual cups.

 

 

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

 

 

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1    605-1025 of the Department of Commerce and Economic
2    Opportunity Law of the Civil Administrative Code of
3    Illinois.
4        For the purposes of this item (44):
5            "Data center" means a building or a series of
6        buildings rehabilitated or constructed to house
7        working servers in one physical location or multiple
8        sites within the State of Illinois.
9            "Qualified tangible personal property" means:
10        electrical systems and equipment; climate control and
11        chilling equipment and systems; mechanical systems and
12        equipment; monitoring and secure systems; emergency
13        generators; hardware; computers; servers; data storage
14        devices; network connectivity equipment; racks;
15        cabinets; telecommunications cabling infrastructure;
16        raised floor systems; peripheral components or
17        systems; software; mechanical, electrical, or plumbing
18        systems; battery systems; cooling systems and towers;
19        temperature control systems; other cabling; and other
20        data center infrastructure equipment and systems
21        necessary to operate qualified tangible personal
22        property, including fixtures; and component parts of
23        any of the foregoing, including installation,
24        maintenance, repair, refurbishment, and replacement of
25        qualified tangible personal property to generate,
26        transform, transmit, distribute, or manage electricity

 

 

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1        necessary to operate qualified tangible personal
2        property; and all other tangible personal property
3        that is essential to the operations of a computer data
4        center. The term "qualified tangible personal
5        property" also includes building materials physically
6        incorporated in to the qualifying data center. To
7        document the exemption allowed under this Section, the
8        retailer must obtain from the purchaser a copy of the
9        certificate of eligibility issued by the Department of
10        Commerce and Economic Opportunity.
11        This item (44) is exempt from the provisions of
12    Section 2-70.
13        (45) Tangible personal property for which a
14    certificate of exemption has been issued under Section
15    2505-805 of the Department of Revenue Law of the Civil
16    Administrative Code of Illinois. This paragraph is exempt
17    from the provisions of Section 2-70.
18(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
19100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
208-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
21eff. 7-12-19; 101-629, eff. 2-5-20.)
 
22    Section 30. The Counties Code is amended by adding Section
235-1186 as follows:
 
24    (55 ILCS 5/5-1186 new)

 

 

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1    Sec. 5-1186. Exemption for materials, equipment, or
2supplies of a bid. Tangible personal property for which a
3certificate of exemption has been issued under Section
42505-805 of the Department of Revenue Law of the Civil
5Administrative Code of Illinois is exempt from any use or
6occupation tax imposed by a county under this Code.
 
7    Section 35. The Illinois Municipal Code is amended by
8adding Section 8-1-19 as follows:
 
9    (65 ILCS 5/8-1-19 new)
10    Sec. 8-1-19. Exemption for materials, equipment, or
11supplies of a bid. Tangible personal property for which a
12certificate of exemption has been issued under Section
132505-805 of the Department of Revenue Law of the Civil
14Administrative Code of Illinois is exempt from any use or
15occupation tax imposed by a municipality under this Code.
 
16    Section 40. The Civic Center Code is amended by adding
17Section 245-13 as follows:
 
18    (70 ILCS 200/245-13 new)
19    Sec. 245-13. Exemption for materials, equipment, or
20supplies of a bid. Tangible personal property for which a
21certificate of exemption has been issued under Section
222505-805 of the Department of Revenue Law of the Civil

 

 

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1Administrative Code of Illinois is exempt from any use or
2occupation tax imposed under this Article.
 
3    Section 45. The Metropolitan Pier and Exposition Authority
4Act is amended by adding Section 13.4 as follows:
 
5    (70 ILCS 210/13.4 new)
6    Sec. 13.4. Exemption for materials, equipment, or supplies
7of a bid. Tangible personal property for which a certificate
8of exemption has been issued under Section 2505-805 of the
9Department of Revenue Law of the Civil Administrative Code of
10Illinois is exempt from any use or occupation tax imposed
11under this Act.
 
12    Section 50. The Flood Prevention District Act is amended
13by adding Section 27 as follows:
 
14    (70 ILCS 750/27 new)
15    Sec. 27. Exemption for materials, equipment, or supplies
16of a bid. Tangible personal property for which a certificate
17of exemption has been issued under Section 2505-805 of the
18Department of Revenue Law of the Civil Administrative Code of
19Illinois is exempt from any use or occupation tax imposed
20under this Act.
 
21    Section 55. The Metro-East Park and Recreation District

 

 

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1Act is amended by adding Section 32 as follows:
 
2    (70 ILCS 1605/32 new)
3    Sec. 32. Exemption for materials, equipment, or supplies
4of a bid. Tangible personal property for which a certificate
5of exemption has been issued under Section 2505-805 of the
6Department of Revenue Law of the Civil Administrative Code of
7Illinois is exempt from any use or occupation tax imposed
8under this Act.
 
9    Section 60. The Local Mass Transit District Act is amended
10by adding Section 5.7 as follows:
 
11    (70 ILCS 3610/5.7 new)
12    Sec. 5.7. Exemption for materials, equipment, or supplies
13of a bid. Tangible personal property for which a certificate
14of exemption has been issued under Section 2505-805 of the
15Department of Revenue Law of the Civil Administrative Code of
16Illinois is exempt from any use or occupation tax imposed
17under this Act.
 
18    Section 65. The Regional Transportation Authority Act is
19amended by adding Section 4.17 as follows:
 
20    (70 ILCS 3615/4.17 new)
21    Sec. 4.17. Exemption for materials, equipment, or supplies

 

 

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1of a bid. Tangible personal property for which a certificate
2of exemption has been issued under Section 2505-805 of the
3Department of Revenue Law of the Civil Administrative Code of
4Illinois is exempt from any use or occupation tax imposed
5under this Act.
 
6    Section 70. The Water Commission Act of 1985 is amended by
7adding Section 4.5 as follows:
 
8    (70 ILCS 3720/4.5 new)
9    Sec. 4.5. Exemption for materials, equipment, or supplies
10of a bid. Tangible personal property for which a certificate
11of exemption has been issued under Section 2505-805 of the
12Department of Revenue Law of the Civil Administrative Code of
13Illinois is exempt from any use or occupation tax imposed
14under this Act.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 2505/2505-805 new
4    35 ILCS 105/3-5
5    35 ILCS 110/3-5
6    35 ILCS 115/3-5
7    35 ILCS 120/2-5
8    55 ILCS 5/5-1186 new
9    65 ILCS 5/8-1-19 new
10    70 ILCS 200/245-13 new
11    70 ILCS 210/13.4 new
12    70 ILCS 750/27 new
13    70 ILCS 1605/32 new
14    70 ILCS 3610/5.7 new
15    70 ILCS 3615/4.17 new
16    70 ILCS 3720/4.5 new