Illinois General Assembly - Full Text of SB2425
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Full Text of SB2425  102nd General Assembly

SB2425 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2425

 

Introduced 2/26/2021, by Sen. Napoleon Harris, III

 

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

    Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that a school bus that is equipped with safety belts for passengers is exempt from the tax under those Acts. Provides that the Acts' automatic sunset provisions do not apply to the exemption. Effective immediately.


LRB102 11516 HLH 16850 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2425LRB102 11516 HLH 16850 b

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

 

 

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

 

 

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1the car is subject to the Replacement Vehicle Tax.
2    (6) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order,
6certified by the purchaser to be used primarily for graphic
7arts production, and including machinery and equipment
8purchased for lease. Equipment includes chemicals or chemicals
9acting as catalysts but only if the chemicals or chemicals
10acting as catalysts effect a direct and immediate change upon
11a graphic arts product. Beginning on July 1, 2017, graphic
12arts machinery and equipment is included in the manufacturing
13and assembling machinery and equipment exemption under
14paragraph (18).
15    (7) Farm chemicals.
16    (8) Legal tender, currency, medallions, or gold or silver
17coinage issued by the State of Illinois, the government of the
18United States of America, or the government of any foreign
19country, and bullion.
20    (9) Personal property purchased from a teacher-sponsored
21student organization affiliated with an elementary or
22secondary school located in Illinois.
23    (10) A motor vehicle that is used for automobile renting,
24as defined in the Automobile Renting Occupation and Use Tax
25Act.
26    (11) Farm machinery and equipment, both new and used,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1July 1, 2019. The exemption provided by this paragraph (18)
2does not include machinery and equipment used in (i) the
3generation of electricity for wholesale or retail sale; (ii)
4the generation or treatment of natural or artificial gas for
5wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions
9of Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption. Beginning on July 1,
112017, the exemption provided by this paragraph (18) includes,
12but is not limited to, graphic arts machinery and equipment,
13as defined in paragraph (6) of this Section.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the

 

 

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

 

 

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

 

 

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (25) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including but not limited to municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB2425- 17 -LRB102 11516 HLH 16850 b

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

 

 

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

 

 

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

 

 

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

 

 

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1    data center. The term "qualified tangible personal
2    property" also includes building materials physically
3    incorporated in to the qualifying data center. To document
4    the exemption allowed under this Section, the retailer
5    must obtain from the purchaser a copy of the certificate
6    of eligibility issued by the Department of Commerce and
7    Economic Opportunity.
8    This item (40) is exempt from the provisions of Section
93-90.
10    (41) Beginning January 1, 2022, a school bus equipped with
11safety belts for passengers. This paragraph is exempt from the
12provisions of Section 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 10. The Retailers' Occupation Tax Act is amended
18by changing Section 2-5 as follows:
 
19    (35 ILCS 120/2-5)
20    Sec. 2-5. Exemptions. Gross receipts from proceeds from
21the sale of the following tangible personal property are
22exempt from the tax imposed by this Act:
23        (1) Farm chemicals.
24        (2) Farm machinery and equipment, both new and used,

 

 

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

 

 

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

 

 

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1    upon a graphic arts product. Beginning on July 1, 2017,
2    graphic arts machinery and equipment is included in the
3    manufacturing and assembling machinery and equipment
4    exemption under paragraph (14).
5        (5) A motor vehicle that is used for automobile
6    renting, as defined in the Automobile Renting Occupation
7    and Use Tax Act. This paragraph is exempt from the
8    provisions of Section 2-70.
9        (6) Personal property sold by a teacher-sponsored
10    student organization affiliated with an elementary or
11    secondary school located in Illinois.
12        (7) Until July 1, 2003, proceeds of that portion of
13    the selling price of a passenger car the sale of which is
14    subject to the Replacement Vehicle Tax.
15        (8) Personal property sold to an Illinois county fair
16    association for use in conducting, operating, or promoting
17    the county fair.
18        (9) Personal property sold to a not-for-profit arts or
19    cultural organization that establishes, by proof required
20    by the Department by rule, that it has received an
21    exemption under Section 501(c)(3) of the Internal Revenue
22    Code and that is organized and operated primarily for the
23    presentation or support of arts or cultural programming,
24    activities, or services. These organizations include, but
25    are not limited to, music and dramatic arts organizations
26    such as symphony orchestras and theatrical groups, arts

 

 

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

 

 

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

 

 

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

 

 

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1    existing law as to the meaning and scope of this
2    exemption. Beginning on July 1, 2017, the exemption
3    provided by this paragraph (14) includes, but is not
4    limited to, graphic arts machinery and equipment, as
5    defined in paragraph (4) of this Section.
6        (15) Proceeds of mandatory service charges separately
7    stated on customers' bills for purchase and consumption of
8    food and beverages, to the extent that the proceeds of the
9    service charge are in fact turned over as tips or as a
10    substitute for tips to the employees who participate
11    directly in preparing, serving, hosting or cleaning up the
12    food or beverage function with respect to which the
13    service charge is imposed.
14        (16) Tangible personal property sold to a purchaser if
15    the purchaser is exempt from use tax by operation of
16    federal law. This paragraph is exempt from the provisions
17    of Section 2-70.
18        (17) Tangible personal property sold to a common
19    carrier by rail or motor that receives the physical
20    possession of the property in Illinois and that transports
21    the property, or shares with another common carrier in the
22    transportation of the property, out of Illinois on a
23    standard uniform bill of lading showing the seller of the
24    property as the shipper or consignor of the property to a
25    destination outside Illinois, for use outside Illinois.
26        (18) Legal tender, currency, medallions, or gold or

 

 

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1    silver coinage issued by the State of Illinois, the
2    government of the United States of America, or the
3    government of any foreign country, and bullion.
4        (19) Until July 1, 2003, oil field exploration,
5    drilling, and production equipment, including (i) rigs and
6    parts of rigs, rotary rigs, cable tool rigs, and workover
7    rigs, (ii) pipe and tubular goods, including casing and
8    drill strings, (iii) pumps and pump-jack units, (iv)
9    storage tanks and flow lines, (v) any individual
10    replacement part for oil field exploration, drilling, and
11    production equipment, and (vi) machinery and equipment
12    purchased for lease; but excluding motor vehicles required
13    to be registered under the Illinois Vehicle Code.
14        (20) Photoprocessing machinery and equipment,
15    including repair and replacement parts, both new and used,
16    including that manufactured on special order, certified by
17    the purchaser to be used primarily for photoprocessing,
18    and including photoprocessing machinery and equipment
19    purchased for lease.
20        (21) Until July 1, 2023, coal and aggregate
21    exploration, mining, off-highway hauling, processing,
22    maintenance, and reclamation equipment, including
23    replacement parts and equipment, and including equipment
24    purchased for lease, but excluding motor vehicles required
25    to be registered under the Illinois Vehicle Code. The
26    changes made to this Section by Public Act 97-767 apply on

 

 

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1    and after July 1, 2003, but no claim for credit or refund
2    is allowed on or after August 16, 2013 (the effective date
3    of Public Act 98-456) for such taxes paid during the
4    period beginning July 1, 2003 and ending on August 16,
5    2013 (the effective date of Public Act 98-456).
6        (22) Until June 30, 2013, fuel and petroleum products
7    sold to or used by an air carrier, certified by the carrier
8    to be used for consumption, shipment, or storage in the
9    conduct of its business as an air common carrier, for a
10    flight destined for or returning from a location or
11    locations outside the United States without regard to
12    previous or subsequent domestic stopovers.
13        Beginning July 1, 2013, fuel and petroleum products
14    sold to or used by an air carrier, certified by the carrier
15    to be used for consumption, shipment, or storage in the
16    conduct of its business as an air common carrier, for a
17    flight that (i) is engaged in foreign trade or is engaged
18    in trade between the United States and any of its
19    possessions and (ii) transports at least one individual or
20    package for hire from the city of origination to the city
21    of final destination on the same aircraft, without regard
22    to a change in the flight number of that aircraft.
23        (23) A transaction in which the purchase order is
24    received by a florist who is located outside Illinois, but
25    who has a florist located in Illinois deliver the property
26    to the purchaser or the purchaser's donee in Illinois.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    coffee, soup, and other items, and replacement parts for
2    these machines. Beginning January 1, 2002 and through June
3    30, 2003, machines and parts for machines used in
4    commercial, coin-operated amusement and vending business
5    if a use or occupation tax is paid on the gross receipts
6    derived from the use of the commercial, coin-operated
7    amusement and vending machines. This paragraph is exempt
8    from the provisions of Section 2-70.
9        (35-5) Beginning August 23, 2001 and through June 30,
10    2016, food for human consumption that is to be consumed
11    off the premises where it is sold (other than alcoholic
12    beverages, soft drinks, and food that has been prepared
13    for immediate consumption) and prescription and
14    nonprescription medicines, drugs, medical appliances, and
15    insulin, urine testing materials, syringes, and needles
16    used by diabetics, for human use, when purchased for use
17    by a person receiving medical assistance under Article V
18    of the Illinois Public Aid Code who resides in a licensed
19    long-term care facility, as defined in the Nursing Home
20    Care Act, or a licensed facility as defined in the ID/DD
21    Community Care Act, the MC/DD Act, or the Specialized
22    Mental Health Rehabilitation Act of 2013.
23        (36) Beginning August 2, 2001, computers and
24    communications equipment utilized for any hospital purpose
25    and equipment used in the diagnosis, analysis, or
26    treatment of hospital patients sold to a lessor who leases

 

 

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

 

 

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

 

 

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

 

 

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1    disallowance of this exemption on or after January 1, 2015
2    and prior to the effective date of this amendatory Act of
3    the 101st General Assembly.
4        (41) Tangible personal property sold to a
5    public-facilities corporation, as described in Section
6    11-65-10 of the Illinois Municipal Code, for purposes of
7    constructing or furnishing a municipal convention hall,
8    but only if the legal title to the municipal convention
9    hall is transferred to the municipality without any
10    further consideration by or on behalf of the municipality
11    at the time of the completion of the municipal convention
12    hall or upon the retirement or redemption of any bonds or
13    other debt instruments issued by the public-facilities
14    corporation in connection with the development of the
15    municipal convention hall. This exemption includes
16    existing public-facilities corporations as provided in
17    Section 11-65-25 of the Illinois Municipal Code. This
18    paragraph is exempt from the provisions of Section 2-70.
19        (42) Beginning January 1, 2017, menstrual pads,
20    tampons, and menstrual cups.
21        (43) Merchandise that is subject to the Rental
22    Purchase Agreement Occupation and Use Tax. The purchaser
23    must certify that the item is purchased to be rented
24    subject to a rental purchase agreement, as defined in the
25    Rental Purchase Agreement Act, and provide proof of
26    registration under the Rental Purchase Agreement

 

 

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1    Occupation and Use Tax Act. This paragraph is exempt from
2    the provisions of Section 2-70.
3        (44) Qualified tangible personal property used in the
4    construction or operation of a data center that has been
5    granted a certificate of exemption by the Department of
6    Commerce and Economic Opportunity, whether that tangible
7    personal property is purchased by the owner, operator, or
8    tenant of the data center or by a contractor or
9    subcontractor of the owner, operator, or tenant. Data
10    centers that would have qualified for a certificate of
11    exemption prior to January 1, 2020 had this amendatory Act
12    of the 101st General Assembly been in effect, may apply
13    for and obtain an exemption for subsequent purchases of
14    computer equipment or enabling software purchased or
15    leased to upgrade, supplement, or replace computer
16    equipment or enabling software purchased or leased in the
17    original investment that would have qualified.
18        The Department of Commerce and Economic Opportunity
19    shall grant a certificate of exemption under this item
20    (44) to qualified data centers as defined by Section
21    605-1025 of the Department of Commerce and Economic
22    Opportunity Law of the Civil Administrative Code of
23    Illinois.
24        For the purposes of this item (44):
25            "Data center" means a building or a series of
26        buildings rehabilitated or constructed to house

 

 

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

 

 

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1        document the exemption allowed under this Section, the
2        retailer must obtain from the purchaser a copy of the
3        certificate of eligibility issued by the Department of
4        Commerce and Economic Opportunity.
5        This item (44) is exempt from the provisions of
6    Section 2-70.
7        (45) Beginning January 1, 2022, a school bus equipped
8    with safety belts for passengers. This paragraph is exempt
9    from the provisions of Section 2-70.
10(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
11100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
128-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
13eff. 7-12-19; 101-629, eff. 2-5-20.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.