Illinois General Assembly - Full Text of SB3634
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Full Text of SB3634  102nd General Assembly

SB3634eng 102ND GENERAL ASSEMBLY

  
  
  

 


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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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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 and through December 31,
232026, menstrual pads, tampons, and 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 July 1, 2022, breast pumps, breast pump
11collection and storage supplies, and breast pump kits. This
12item (41) is exempt from the provisions of Section 3-90. As
13used in this item (41):
14        "Breast pump" means an electrically or
15    manually-controlled pump device designed or marketed to be
16    used to express milk from a human breast during lactation,
17    including the pump device and any battery, AC adapter, or
18    other power supply unit packaged and sold with the pump
19    device at the time of sale to power the pump device.
20        "Breast pump collection and storage supplies" means
21    items of tangible personal property designed or marketed
22    to be used in conjunction with a breast pump to collect
23    milk expressed from a human breast and to store collected
24    milk until it is ready for consumption. "Breast pump
25    collection and storage supplies" includes, but is not
26    limited to: breast shields and breast shield connectors;

 

 

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

 

 

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1    breast pump kit at the time of sale are less than 10% of
2    the total sales price of the breast pump kit.
3(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
4101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
56-17-21.)
 
6    Section 10. The Service Use Tax Act is amended by changing
7Section 3-5 as follows:
 
8    (35 ILCS 110/3-5)
9    Sec. 3-5. Exemptions. Use of the following tangible
10personal property is exempt from the tax imposed by this Act:
11    (1) Personal property purchased from a corporation,
12society, association, foundation, institution, or
13organization, other than a limited liability company, that is
14organized and operated as a not-for-profit service enterprise
15for the benefit of persons 65 years of age or older if the
16personal property was not purchased by the enterprise for the
17purpose of resale by the enterprise.
18    (2) Personal property purchased by a non-profit Illinois
19county fair association for use in conducting, operating, or
20promoting the county fair.
21    (3) Personal property purchased by a not-for-profit arts
22or cultural organization that establishes, by proof required
23by the Department by rule, that it has received an exemption
24under Section 501(c)(3) of the Internal Revenue Code and that

 

 

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1is organized and operated primarily for the presentation or
2support of arts or cultural programming, activities, or
3services. These organizations include, but are not limited to,
4music and dramatic arts organizations such as symphony
5orchestras and theatrical groups, arts and cultural service
6organizations, local arts councils, visual arts organizations,
7and media arts organizations. On and after July 1, 2001 (the
8effective date of Public Act 92-35), however, an entity
9otherwise eligible for this exemption shall not make tax-free
10purchases unless it has an active identification number issued
11by the Department.
12    (4) Legal tender, currency, medallions, or gold or silver
13coinage issued by the State of Illinois, the government of the
14United States of America, or the government of any foreign
15country, and bullion.
16    (5) Until July 1, 2003 and beginning again on September 1,
172004 through August 30, 2014, graphic arts machinery and
18equipment, including repair and replacement parts, both new
19and used, and including that manufactured on special order or
20purchased for lease, certified by the purchaser to be used
21primarily for graphic arts production. Equipment includes
22chemicals or chemicals acting as catalysts but only if the
23chemicals or chemicals acting as catalysts effect a direct and
24immediate change upon a graphic arts product. Beginning on
25July 1, 2017, graphic arts machinery and equipment is included
26in the manufacturing and assembling machinery and equipment

 

 

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

 

 

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

 

 

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

 

 

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1certified by the purchaser to be used primarily for
2photoprocessing, and including photoprocessing machinery and
3equipment purchased for lease.
4    (12) Until July 1, 2023, coal and aggregate exploration,
5mining, off-highway hauling, processing, maintenance, and
6reclamation equipment, including replacement parts and
7equipment, and including equipment purchased for lease, but
8excluding motor vehicles required to be registered under the
9Illinois Vehicle Code. The changes made to this Section by
10Public Act 97-767 apply on and after July 1, 2003, but no claim
11for credit or refund is allowed on or after August 16, 2013
12(the effective date of Public Act 98-456) for such taxes paid
13during the period beginning July 1, 2003 and ending on August
1416, 2013 (the effective date of Public Act 98-456).
15    (13) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (14) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (14) is exempt from the
23provisions of Section 3-75, and the exemption provided for
24under this item (14) applies for all periods beginning May 30,
251995, but no claim for credit or refund is allowed on or after
26January 1, 2008 (the effective date of Public Act 95-88) for

 

 

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1such taxes paid during the period beginning May 30, 2000 and
2ending on January 1, 2008 (the effective date of Public Act
395-88).
4    (15) 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 Use Tax Act, as the case
16may be, based on the fair market value of the property at the
17time the non-qualifying use occurs. No lessor shall collect or
18attempt to collect an amount (however designated) that
19purports to reimburse that lessor for the tax imposed by this
20Act or the Use Tax Act, as the case may be, if the tax has not
21been paid by the lessor. If a lessor improperly collects any
22such amount from the lessee, the lessee shall have a legal
23right to claim a refund of that amount from the lessor. If,
24however, that amount is not refunded to the lessee for any
25reason, the lessor is liable to pay that amount to the
26Department.

 

 

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

 

 

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (18) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in
8the performance of infrastructure repairs in this State,
9including but not limited to municipal roads and streets,
10access roads, bridges, sidewalks, waste disposal systems,
11water and sewer line extensions, water distribution and
12purification facilities, storm water drainage and retention
13facilities, and sewage treatment facilities, resulting from a
14State or federally declared disaster in Illinois or bordering
15Illinois when such repairs are initiated on facilities located
16in the declared disaster area within 6 months after the
17disaster.
18    (19) Beginning July 1, 1999, game or game birds purchased
19at a "game breeding and hunting preserve area" as that term is
20used in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-75.
22    (20) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the
26Department to be organized and operated exclusively for

 

 

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-75.
3    (22) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and
6other items, and replacement parts for these machines.
7Beginning January 1, 2002 and through June 30, 2003, machines
8and parts for machines used in commercial, coin-operated
9amusement and vending business if a use or occupation tax is
10paid on the gross receipts derived from the use of the
11commercial, coin-operated amusement and vending machines. This
12paragraph is exempt from the provisions of Section 3-75.
13    (23) Beginning August 23, 2001 and through June 30, 2016,
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages,
16soft drinks, and food that has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances, and insulin, urine testing
19materials, syringes, and needles used by diabetics, for human
20use, when purchased for use by a person receiving medical
21assistance under Article V of the Illinois Public Aid Code who
22resides in a licensed long-term care facility, as defined in
23the Nursing Home Care Act, or in a licensed facility as defined
24in the ID/DD Community Care Act, the MC/DD Act, or the
25Specialized Mental Health Rehabilitation Act of 2013.
26    (24) Beginning on August 2, 2001 (the effective date of

 

 

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1Public Act 92-227), computers and communications equipment
2utilized for any hospital purpose and equipment used in the
3diagnosis, analysis, or treatment of hospital patients
4purchased by a lessor who leases the equipment, under a lease
5of one year or longer executed or in effect at the time the
6lessor would otherwise be subject to the tax imposed by this
7Act, to a hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the equipment is leased
10in a manner that does not qualify for this exemption or is used
11in any other nonexempt manner, the lessor shall be liable for
12the tax imposed under this Act or the Use Tax Act, as the case
13may be, based on the fair market value of the property at the
14time the nonqualifying 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 Use Tax Act, as the case may be, if the tax has not
18been paid by the lessor. If a lessor improperly collects any
19such amount from the lessee, the lessee shall have a legal
20right to claim a refund of that amount from the lessor. If,
21however, that amount is not refunded to the lessee for any
22reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-75.
25    (25) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), personal property purchased by a lessor

 

 

SB3634 Engrossed- 35 -LRB102 24520 HLH 33754 b

1who leases the property, under a lease of one year or longer
2executed or in effect at the time the lessor would otherwise be
3subject to the tax imposed by this Act, to a governmental body
4that has been issued an active tax exemption identification
5number by the Department under Section 1g of the Retailers'
6Occupation Tax Act. If the property is leased in a manner that
7does not qualify for this exemption or is used in any other
8nonexempt manner, the lessor shall be liable for the tax
9imposed under this Act or the Use Tax Act, as the case may be,
10based on the fair market value of the property at the time the
11nonqualifying use occurs. No lessor shall collect or attempt
12to collect an amount (however designated) that purports to
13reimburse that lessor for the tax imposed by this Act or the
14Use Tax Act, as the case may be, if the tax has not been paid
15by the lessor. If a lessor improperly collects any such amount
16from the lessee, the lessee shall have a legal right to claim a
17refund of that amount from the lessor. If, however, that
18amount is not refunded to the lessee for any reason, the lessor
19is liable to pay that amount to the Department. This paragraph
20is exempt from the provisions of Section 3-75.
21    (26) Beginning January 1, 2008, tangible personal property
22used in the construction or maintenance of a community water
23supply, as defined under Section 3.145 of the Environmental
24Protection Act, that is operated by a not-for-profit
25corporation that holds a valid water supply permit issued
26under Title IV of the Environmental Protection Act. This

 

 

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

 

 

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1authority issued under Part 121 or Part 129 of the Federal
2Aviation Regulations. The changes made to this paragraph (27)
3by Public Act 98-534 are declarative of existing law. It is the
4intent of the General Assembly that the exemption under this
5paragraph (27) applies continuously from January 1, 2010
6through December 31, 2024; however, no claim for credit or
7refund is allowed for taxes paid as a result of the
8disallowance of this exemption on or after January 1, 2015 and
9prior to the effective date of this amendatory Act of the 101st
10General Assembly.
11    (28) Tangible personal property purchased by 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 3-75.
26    (29) Beginning January 1, 2017 and through December 31,

 

 

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12026, menstrual pads, tampons, and menstrual cups.
2    (30) Tangible personal property transferred to a purchaser
3who is exempt from the tax imposed by this Act by operation of
4federal law. This paragraph is exempt from the provisions of
5Section 3-75.
6    (31) Qualified tangible personal property used in the
7construction or operation of a data center that has been
8granted a certificate of exemption by the Department of
9Commerce and Economic Opportunity, whether that tangible
10personal property is purchased by the owner, operator, or
11tenant of the data center or by a contractor or subcontractor
12of the owner, operator, or tenant. Data centers that would
13have qualified for a certificate of exemption prior to January
141, 2020 had this amendatory Act of the 101st General Assembly
15been in effect, may apply for and obtain an exemption for
16subsequent purchases of computer equipment or enabling
17software purchased or leased to upgrade, supplement, or
18replace computer equipment or enabling software purchased or
19leased in the original investment that would have qualified.
20    The Department of Commerce and Economic Opportunity shall
21grant a certificate of exemption under this item (31) to
22qualified data centers as defined by Section 605-1025 of the
23Department of Commerce and Economic Opportunity Law of the
24Civil Administrative Code of Illinois.
25    For the purposes of this item (31):
26        "Data center" means a building or a series of

 

 

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

 

 

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1    the exemption allowed under this Section, the retailer
2    must obtain from the purchaser a copy of the certificate
3    of eligibility issued by the Department of Commerce and
4    Economic Opportunity.
5    This item (31) is exempt from the provisions of Section
63-75.
7    (32) Beginning July 1, 2022, breast pumps, breast pump
8collection and storage supplies, and breast pump kits. This
9item (32) is exempt from the provisions of Section 3-75. As
10used in this item (32):
11        "Breast pump" means an electrically or
12    manually-controlled pump device designed or marketed to be
13    used to express milk from a human breast during lactation,
14    including the pump device and any battery, AC adapter, or
15    other power supply unit packaged and sold with the pump
16    device at the time of sale to power the pump device.
17        "Breast pump collection and storage supplies" means
18    items of tangible personal property designed or marketed
19    to be used in conjunction with a breast pump to collect
20    milk expressed from a human breast and to store collected
21    milk until it is ready for consumption. "Breast pump
22    collection and storage supplies" includes, but is not
23    limited to: breast shields and breast shield connectors;
24    breast pump tubes and tubing adapters; breast pump valves
25    and membranes; backflow protectors and backflow protector
26    adaptors; bottles and bottle caps specific to the

 

 

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

 

 

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1101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
2    Section 15. The Service Occupation Tax Act is amended by
3changing Section 3-5 as follows:
 
4    (35 ILCS 115/3-5)
5    Sec. 3-5. Exemptions. The following tangible personal
6property is exempt from the tax imposed by this Act:
7    (1) Personal property sold by a corporation, society,
8association, foundation, institution, or organization, other
9than a limited liability company, that is organized and
10operated as a not-for-profit service enterprise for the
11benefit of persons 65 years of age or older if the personal
12property was not purchased by the enterprise for the purpose
13of resale by the enterprise.
14    (2) Personal property purchased by a not-for-profit
15Illinois county fair association for use in conducting,
16operating, or promoting the county fair.
17    (3) Personal property purchased by any not-for-profit arts
18or cultural organization that establishes, by proof required
19by the Department by rule, that it has received an exemption
20under Section 501(c)(3) of the Internal Revenue Code and that
21is organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,
24music and dramatic arts organizations such as symphony

 

 

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1orchestras and theatrical groups, arts and cultural service
2organizations, local arts councils, visual arts organizations,
3and media arts organizations. On and after July 1, 2001 (the
4effective date of Public Act 92-35), however, an entity
5otherwise eligible for this exemption shall not make tax-free
6purchases unless it has an active identification number issued
7by the Department.
8    (4) Legal tender, currency, medallions, or gold or silver
9coinage issued by the State of Illinois, the government of the
10United States of America, or the government of any foreign
11country, and bullion.
12    (5) Until July 1, 2003 and beginning again on September 1,
132004 through August 30, 2014, graphic arts machinery and
14equipment, including repair and replacement parts, both new
15and used, and including that manufactured on special order or
16purchased for lease, certified by the purchaser to be used
17primarily for graphic arts production. Equipment includes
18chemicals or chemicals acting as catalysts but only if the
19chemicals or chemicals acting as catalysts effect a direct and
20immediate change upon a graphic arts product. Beginning on
21July 1, 2017, graphic arts machinery and equipment is included
22in the manufacturing and assembling machinery and equipment
23exemption under Section 2 of this Act.
24    (6) Personal property sold by a teacher-sponsored student
25organization affiliated with an elementary or secondary school
26located in Illinois.

 

 

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

 

 

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

 

 

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

 

 

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1equipment, and including equipment purchased for lease, but
2excluding motor vehicles required to be registered under the
3Illinois Vehicle Code. The changes made to this Section by
4Public Act 97-767 apply on and after July 1, 2003, but no claim
5for credit or refund is allowed on or after August 16, 2013
6(the effective date of Public Act 98-456) for such taxes paid
7during the period beginning July 1, 2003 and ending on August
816, 2013 (the effective date of Public Act 98-456).
9    (13) Beginning January 1, 1992 and through June 30, 2016,
10food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages,
12soft drinks and food that has been prepared for immediate
13consumption) and prescription and non-prescription medicines,
14drugs, medical appliances, and insulin, urine testing
15materials, syringes, and needles used by diabetics, for human
16use, when purchased for use by a person receiving medical
17assistance under Article V of the Illinois Public Aid Code who
18resides in a licensed long-term care facility, as defined in
19the Nursing Home Care Act, or in a licensed facility as defined
20in the ID/DD Community Care Act, the MC/DD Act, or the
21Specialized Mental Health Rehabilitation Act of 2013.
22    (14) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (15) Horses, or interests in horses, registered with and
25meeting the requirements of any of the Arabian Horse Club
26Registry of America, Appaloosa Horse Club, American Quarter

 

 

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1Horse Association, United States Trotting Association, or
2Jockey Club, as appropriate, used for purposes of breeding or
3racing for prizes. This item (15) is exempt from the
4provisions of Section 3-55, and the exemption provided for
5under this item (15) applies for all periods beginning May 30,
61995, but no claim for credit or refund is allowed on or after
7January 1, 2008 (the effective date of Public Act 95-88) for
8such taxes paid during the period beginning May 30, 2000 and
9ending on January 1, 2008 (the effective date of Public Act
1095-88).
11    (16) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients sold to a lessor
14who leases the equipment, under a lease of one year or longer
15executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of
18the Retailers' Occupation Tax Act.
19    (17) Personal property sold to a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time of the purchase, to a governmental body that
22has been issued an active tax exemption identification number
23by the Department under Section 1g of the Retailers'
24Occupation Tax Act.
25    (18) Beginning with taxable years ending on or after
26December 31, 1995 and ending with taxable years ending on or

 

 

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

 

 

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

 

 

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1private home instruction or (ii) for which the fundraising
2entity purchases the personal property sold at the events from
3another individual or entity that sold the property for the
4purpose of resale by the fundraising entity and that profits
5from the sale to the fundraising entity. This paragraph is
6exempt from the provisions of Section 3-55.
7    (23) Beginning January 1, 2000 and through December 31,
82001, new or used automatic vending machines that prepare and
9serve hot food and beverages, including coffee, soup, and
10other items, and replacement parts for these machines.
11Beginning January 1, 2002 and through June 30, 2003, machines
12and parts for machines used in commercial, coin-operated
13amusement and vending business if a use or occupation tax is
14paid on the gross receipts derived from the use of the
15commercial, coin-operated amusement and vending machines. This
16paragraph is exempt from the provisions of Section 3-55.
17    (24) Beginning on August 2, 2001 (the effective date of
18Public Act 92-227), computers and communications equipment
19utilized for any hospital purpose and equipment used in the
20diagnosis, analysis, or treatment of hospital patients sold to
21a lessor who leases the equipment, under a lease of one year or
22longer executed or in effect at the time of the purchase, to a
23hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25the Retailers' Occupation Tax Act. This paragraph is exempt
26from the provisions of Section 3-55.

 

 

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1    (25) Beginning on August 2, 2001 (the effective date of
2Public Act 92-227), personal property sold to a lessor who
3leases the property, under a lease of one year or longer
4executed or in effect at the time of the purchase, to a
5governmental body that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. This paragraph is exempt
8from the provisions of Section 3-55.
9    (26) Beginning on January 1, 2002 and through June 30,
102016, tangible personal property purchased from an Illinois
11retailer by a taxpayer engaged in centralized purchasing
12activities in Illinois who will, upon receipt of the property
13in Illinois, temporarily store the property in Illinois (i)
14for the purpose of subsequently transporting it outside this
15State for use or consumption thereafter solely outside this
16State or (ii) for the purpose of being processed, fabricated,
17or manufactured into, attached to, or incorporated into other
18tangible personal property to be transported outside this
19State and thereafter used or consumed solely outside this
20State. The Director of Revenue shall, pursuant to rules
21adopted in accordance with the Illinois Administrative
22Procedure Act, issue a permit to any taxpayer in good standing
23with the Department who is eligible for the exemption under
24this paragraph (26). The permit issued under this paragraph
25(26) shall authorize the holder, to the extent and in the
26manner specified in the rules adopted under this Act, to

 

 

SB3634 Engrossed- 53 -LRB102 24520 HLH 33754 b

1purchase tangible personal property from a retailer exempt
2from the taxes imposed by this Act. Taxpayers shall maintain
3all necessary books and records to substantiate the use and
4consumption of all such tangible personal property outside of
5the State of Illinois.
6    (27) 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 3-55.
13    (28) Tangible personal property sold to a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt
22instruments issued by the public-facilities corporation in
23connection with the development of the municipal convention
24hall. This exemption includes existing public-facilities
25corporations as provided in Section 11-65-25 of the Illinois
26Municipal Code. This paragraph is exempt from the provisions

 

 

SB3634 Engrossed- 54 -LRB102 24520 HLH 33754 b

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

 

 

SB3634 Engrossed- 55 -LRB102 24520 HLH 33754 b

1under Part 121 or Part 129 of the Federal Aviation
2Regulations. The changes made to this paragraph (29) by Public
3Act 98-534 are declarative of existing law. It is the intent of
4the General Assembly that the exemption under this paragraph
5(29) applies continuously from January 1, 2010 through
6December 31, 2024; however, no claim for credit or refund is
7allowed for taxes paid as a result of the disallowance of this
8exemption on or after January 1, 2015 and prior to the
9effective date of this amendatory Act of the 101st General
10Assembly.
11    (30) Beginning January 1, 2017 and through December 31,
122026, menstrual pads, tampons, and menstrual cups.
13    (31) Tangible personal property transferred to a purchaser
14who is exempt from tax by operation of federal law. This
15paragraph is exempt from the provisions of Section 3-55.
16    (32) Qualified tangible personal property used in the
17construction or operation of a data center that has been
18granted a certificate of exemption by the Department of
19Commerce and Economic Opportunity, whether that tangible
20personal property is purchased by the owner, operator, or
21tenant of the data center or by a contractor or subcontractor
22of the owner, operator, or tenant. Data centers that would
23have qualified for a certificate of exemption prior to January
241, 2020 had this amendatory Act of the 101st General Assembly
25been in effect, may apply for and obtain an exemption for
26subsequent purchases of computer equipment or enabling

 

 

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

 

 

SB3634 Engrossed- 57 -LRB102 24520 HLH 33754 b

1    and component parts of any of the foregoing, including
2    installation, maintenance, repair, refurbishment, and
3    replacement of qualified tangible personal property to
4    generate, transform, transmit, distribute, or manage
5    electricity necessary to operate qualified tangible
6    personal property; and all other tangible personal
7    property that is essential to the operations of a computer
8    data center. The term "qualified tangible personal
9    property" also includes building materials physically
10    incorporated in to the qualifying data center. To document
11    the exemption allowed under this Section, the retailer
12    must obtain from the purchaser a copy of the certificate
13    of eligibility issued by the Department of Commerce and
14    Economic Opportunity.
15    This item (32) is exempt from the provisions of Section
163-55.
17    (33) Beginning July 1, 2022, breast pumps, breast pump
18collection and storage supplies, and breast pump kits. This
19item (33) is exempt from the provisions of Section 3-55. As
20used in this item (33):
21        "Breast pump" means an electrically or
22    manually-controlled pump device designed or marketed to be
23    used to express milk from a human breast during lactation,
24    including the pump device and any battery, AC adapter, or
25    other power supply unit packaged and sold with the pump
26    device at the time of sale to power the pump device.

 

 

SB3634 Engrossed- 58 -LRB102 24520 HLH 33754 b

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

 

 

SB3634 Engrossed- 59 -LRB102 24520 HLH 33754 b

1    distributor.
2        "Breast pump kit" means a kit that contains a breast
3    pump and breast pump collection and storage supplies or
4    other taxable items of tangible personal property that may
5    be useful to initiate, support, or sustain breastfeeding
6    using a breast pump during lactation, so long as the other
7    taxable items of tangible personal property sold with the
8    breast pump kit at the time of sale are less than 10% of
9    the total sales price of the breast pump kit.
10(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
11101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
12    Section 20. The Retailers' Occupation Tax Act is amended
13by changing Section 2-5 as follows:
 
14    (35 ILCS 120/2-5)
15    Sec. 2-5. Exemptions. Gross receipts from proceeds from
16the sale of the following tangible personal property are
17exempt from the tax imposed by this Act:
18        (1) Farm chemicals.
19        (2) Farm machinery and equipment, both new and used,
20    including that manufactured on special order, certified by
21    the purchaser to be used primarily for production
22    agriculture or State or federal agricultural programs,
23    including individual replacement parts for the machinery
24    and equipment, including machinery and equipment purchased

 

 

SB3634 Engrossed- 60 -LRB102 24520 HLH 33754 b

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

 

 

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

 

 

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1    renting, as defined in the Automobile Renting Occupation
2    and Use Tax Act. This paragraph is exempt from the
3    provisions of Section 2-70.
4        (6) Personal property sold by a teacher-sponsored
5    student organization affiliated with an elementary or
6    secondary school located in Illinois.
7        (7) Until July 1, 2003, proceeds of that portion of
8    the selling price of a passenger car the sale of which is
9    subject to the Replacement Vehicle Tax.
10        (8) Personal property sold to an Illinois county fair
11    association for use in conducting, operating, or promoting
12    the county fair.
13        (9) Personal property sold to a not-for-profit arts or
14    cultural organization that establishes, by proof required
15    by the Department by rule, that it has received an
16    exemption under Section 501(c)(3) of the Internal Revenue
17    Code and that is organized and operated primarily for the
18    presentation or support of arts or cultural programming,
19    activities, or services. These organizations include, but
20    are not limited to, music and dramatic arts organizations
21    such as symphony orchestras and theatrical groups, arts
22    and cultural service organizations, local arts councils,
23    visual arts organizations, and media arts organizations.
24    On and after July 1, 2001 (the effective date of Public Act
25    92-35), however, an entity otherwise eligible for this
26    exemption shall not make tax-free purchases unless it has

 

 

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1    an active identification number issued by the Department.
2        (10) Personal property sold by a corporation, society,
3    association, foundation, institution, or organization,
4    other than a limited liability company, that is organized
5    and operated as a not-for-profit service enterprise for
6    the benefit of persons 65 years of age or older if the
7    personal property was not purchased by the enterprise for
8    the purpose of resale by the enterprise.
9        (11) Personal property sold to a governmental body, to
10    a corporation, society, association, foundation, or
11    institution organized and operated exclusively for
12    charitable, religious, or educational purposes, or to a
13    not-for-profit corporation, society, association,
14    foundation, institution, or organization that has no
15    compensated officers or employees and that is organized
16    and operated primarily for the recreation of persons 55
17    years of age or older. A limited liability company may
18    qualify for the exemption under this paragraph only if the
19    limited liability company is organized and operated
20    exclusively for educational purposes. On and after July 1,
21    1987, however, no entity otherwise eligible for this
22    exemption shall make tax-free purchases unless it has an
23    active identification number issued by the Department.
24        (12) (Blank).
25        (12-5) On and after July 1, 2003 and through June 30,
26    2004, motor vehicles of the second division with a gross

 

 

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

 

 

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

 

 

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1        (15) Proceeds of mandatory service charges separately
2    stated on customers' bills for purchase and consumption of
3    food and beverages, to the extent that the proceeds of the
4    service charge are in fact turned over as tips or as a
5    substitute for tips to the employees who participate
6    directly in preparing, serving, hosting or cleaning up the
7    food or beverage function with respect to which the
8    service charge is imposed.
9        (16) Tangible personal property sold to a purchaser if
10    the purchaser is exempt from use tax by operation of
11    federal law. This paragraph is exempt from the provisions
12    of Section 2-70.
13        (17) Tangible personal property sold to a common
14    carrier by rail or motor that receives the physical
15    possession of the property in Illinois and that transports
16    the property, or shares with another common carrier in the
17    transportation of the property, out of Illinois on a
18    standard uniform bill of lading showing the seller of the
19    property as the shipper or consignor of the property to a
20    destination outside Illinois, for use outside Illinois.
21        (18) Legal tender, currency, medallions, or gold or
22    silver coinage issued by the State of Illinois, the
23    government of the United States of America, or the
24    government of any foreign country, and bullion.
25        (19) Until July 1, 2003, oil field exploration,
26    drilling, and production equipment, including (i) rigs and

 

 

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

 

 

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

 

 

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

 

 

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1    signed under penalty of perjury, of his or her intent to
2    title the vehicle in the state in which the purchaser is a
3    resident within 30 days after the sale and of the fact of
4    the payment to the State of Illinois of tax in an amount
5    equivalent to the state's rate of tax on taxable property
6    in his or her state of residence and shall submit the
7    statement to the appropriate tax collection agency in his
8    or her state of residence. In addition, the retailer must
9    retain a signed copy of the statement in his or her
10    records. Nothing in this item shall be construed to
11    require the removal of the vehicle from this state
12    following the filing of an intent to title the vehicle in
13    the purchaser's state of residence if the purchaser titles
14    the vehicle in his or her state of residence within 30 days
15    after the date of sale. The tax collected under this Act in
16    accordance with this item (25-5) shall be proportionately
17    distributed as if the tax were collected at the 6.25%
18    general rate imposed under this Act.
19        (25-7) Beginning on July 1, 2007, no tax is imposed
20    under this Act on the sale of an aircraft, as defined in
21    Section 3 of the Illinois Aeronautics Act, if all of the
22    following conditions are met:
23            (1) the aircraft leaves this State within 15 days
24        after the later of either the issuance of the final
25        billing for the sale of the aircraft, or the
26        authorized approval for return to service, completion

 

 

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

 

 

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

 

 

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

 

 

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1    drainage and retention facilities, and sewage treatment
2    facilities, resulting from a State or federally declared
3    disaster in Illinois or bordering Illinois when such
4    repairs are initiated on facilities located in the
5    declared disaster area within 6 months after the disaster.
6        (32) Beginning July 1, 1999, game or game birds sold
7    at a "game breeding and hunting preserve area" as that
8    term is used in the Wildlife Code. This paragraph is
9    exempt from the provisions of Section 2-70.
10        (33) A motor vehicle, as that term is defined in
11    Section 1-146 of the Illinois Vehicle Code, that is
12    donated to a corporation, limited liability company,
13    society, association, foundation, or institution that is
14    determined by the Department to be organized and operated
15    exclusively for educational purposes. For purposes of this
16    exemption, "a corporation, limited liability company,
17    society, association, foundation, or institution organized
18    and operated exclusively for educational purposes" means
19    all tax-supported public schools, private schools that
20    offer systematic instruction in useful branches of
21    learning by methods common to public schools and that
22    compare favorably in their scope and intensity with the
23    course of study presented in tax-supported schools, and
24    vocational or technical schools or institutes organized
25    and operated exclusively to provide a course of study of
26    not less than 6 weeks duration and designed to prepare

 

 

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1    individuals to follow a trade or to pursue a manual,
2    technical, mechanical, industrial, business, or commercial
3    occupation.
4        (34) Beginning January 1, 2000, personal property,
5    including food, purchased through fundraising events for
6    the benefit of a public or private elementary or secondary
7    school, a group of those schools, or one or more school
8    districts if the events are sponsored by an entity
9    recognized by the school district that consists primarily
10    of volunteers and includes parents and teachers of the
11    school children. This paragraph does not apply to
12    fundraising events (i) for the benefit of private home
13    instruction or (ii) for which the fundraising entity
14    purchases the personal property sold at the events from
15    another individual or entity that sold the property for
16    the purpose of resale by the fundraising entity and that
17    profits from the sale to the fundraising entity. This
18    paragraph is exempt from the provisions of Section 2-70.
19        (35) Beginning January 1, 2000 and through December
20    31, 2001, new or used automatic vending machines that
21    prepare and serve hot food and beverages, including
22    coffee, soup, and other items, and replacement parts for
23    these machines. Beginning January 1, 2002 and through June
24    30, 2003, machines and parts for machines used in
25    commercial, coin-operated amusement and vending business
26    if a use or occupation tax is paid on the gross receipts

 

 

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

 

 

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

 

 

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

 

 

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1    or uninstalled upon any such aircraft. "Consumable
2    supplies" include, but are not limited to, adhesive, tape,
3    sandpaper, general purpose lubricants, cleaning solution,
4    latex gloves, and protective films. This exemption applies
5    only to the sale of qualifying tangible personal property
6    to persons who modify, refurbish, complete, replace, or
7    maintain an aircraft and who (i) hold an Air Agency
8    Certificate and are empowered to operate an approved
9    repair station by the Federal Aviation Administration,
10    (ii) have a Class IV Rating, and (iii) conduct operations
11    in accordance with Part 145 of the Federal Aviation
12    Regulations. The exemption does not include aircraft
13    operated by a commercial air carrier providing scheduled
14    passenger air service pursuant to authority issued under
15    Part 121 or Part 129 of the Federal Aviation Regulations.
16    The changes made to this paragraph (40) by Public Act
17    98-534 are declarative of existing law. It is the intent
18    of the General Assembly that the exemption under this
19    paragraph (40) applies continuously from January 1, 2010
20    through December 31, 2024; however, no claim for credit or
21    refund is allowed for taxes paid as a result of the
22    disallowance of this exemption on or after January 1, 2015
23    and prior to the effective date of this amendatory Act of
24    the 101st General Assembly.
25        (41) Tangible personal property sold to a
26    public-facilities corporation, as described in Section

 

 

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1    11-65-10 of the Illinois Municipal Code, for purposes of
2    constructing or furnishing a municipal convention hall,
3    but only if the legal title to the municipal convention
4    hall is transferred to the municipality without any
5    further consideration by or on behalf of the municipality
6    at the time of the completion of the municipal convention
7    hall or upon the retirement or redemption of any bonds or
8    other debt instruments issued by the public-facilities
9    corporation in connection with the development of the
10    municipal convention hall. This exemption includes
11    existing public-facilities corporations as provided in
12    Section 11-65-25 of the Illinois Municipal Code. This
13    paragraph is exempt from the provisions of Section 2-70.
14        (42) Beginning January 1, 2017 and through December
15    31, 2026, menstrual pads, tampons, and menstrual cups.
16        (43) Merchandise that is subject to the Rental
17    Purchase Agreement Occupation and Use Tax. The purchaser
18    must certify that the item is purchased to be rented
19    subject to a rental purchase agreement, as defined in the
20    Rental Purchase Agreement Act, and provide proof of
21    registration under the Rental Purchase Agreement
22    Occupation and Use Tax Act. This paragraph is exempt from
23    the provisions of Section 2-70.
24        (44) Qualified tangible personal property used in the
25    construction or operation of a data center that has been
26    granted a certificate of exemption by the Department of

 

 

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

 

 

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1        equipment; monitoring and secure systems; emergency
2        generators; hardware; computers; servers; data storage
3        devices; network connectivity equipment; racks;
4        cabinets; telecommunications cabling infrastructure;
5        raised floor systems; peripheral components or
6        systems; software; mechanical, electrical, or plumbing
7        systems; battery systems; cooling systems and towers;
8        temperature control systems; other cabling; and other
9        data center infrastructure equipment and systems
10        necessary to operate qualified tangible personal
11        property, including fixtures; and component parts of
12        any of the foregoing, including installation,
13        maintenance, repair, refurbishment, and replacement of
14        qualified tangible personal property to generate,
15        transform, transmit, distribute, or manage electricity
16        necessary to operate qualified tangible personal
17        property; and all other tangible personal property
18        that is essential to the operations of a computer data
19        center. The term "qualified tangible personal
20        property" also includes building materials physically
21        incorporated into in to the qualifying data center. To
22        document the exemption allowed under this Section, the
23        retailer must obtain from the purchaser a copy of the
24        certificate of eligibility issued by the Department of
25        Commerce and Economic Opportunity.
26        This item (44) is exempt from the provisions of

 

 

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1    Section 2-70.
2        (45) Beginning January 1, 2020 and through December
3    31, 2020, sales of tangible personal property made by a
4    marketplace seller over a marketplace for which tax is due
5    under this Act but for which use tax has been collected and
6    remitted to the Department by a marketplace facilitator
7    under Section 2d of the Use Tax Act are exempt from tax
8    under this Act. A marketplace seller claiming this
9    exemption shall maintain books and records demonstrating
10    that the use tax on such sales has been collected and
11    remitted by a marketplace facilitator. Marketplace sellers
12    that have properly remitted tax under this Act on such
13    sales may file a claim for credit as provided in Section 6
14    of this Act. No claim is allowed, however, for such taxes
15    for which a credit or refund has been issued to the
16    marketplace facilitator under the Use Tax Act, or for
17    which the marketplace facilitator has filed a claim for
18    credit or refund under the Use Tax Act.
19        (46) Beginning July 1, 2022, breast pumps, breast pump
20    collection and storage supplies, and breast pump kits.
21    This item (46) is exempt from the provisions of Section
22    2-70. As used in this item (46):
23        "Breast pump" means an electrically or
24    manually-controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

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

 

 

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1    breasts or nipples, unless sold as part of a breast pump
2    kit pre-packaged by the breast pump manufacturer or
3    distributor.
4        "Breast pump kit" means a kit that contains a breast
5    pump and breast pump collection and storage supplies or
6    other taxable items of tangible personal property that may
7    be useful to initiate, support, or sustain breastfeeding
8    using a breast pump during lactation, so long as the other
9    taxable items of tangible personal property sold with the
10    breast pump kit at the time of sale are less than 10% of
11    the total sales price of the breast pump kit.
12(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
13101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
148-27-21; revised 11-9-21.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.