HB3902ham001 101ST GENERAL ASSEMBLY

Rep. Monica Bristow

Adopted in House Comm. on Oct 29, 2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3902

2    AMENDMENT NO. ______. Amend House Bill 3902 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1Illinois county fair association for use in conducting,
2operating, or promoting the county fair.
3    (3) Personal property purchased by a not-for-profit arts or
4cultural organization that establishes, by proof required by
5the Department by rule, that it has received an exemption under
6Section 501(c)(3) of the Internal Revenue Code and that is
7organized and operated primarily for the presentation or
8support of arts or cultural programming, activities, or
9services. These organizations include, but are not limited to,
10music and dramatic arts organizations such as symphony
11orchestras and theatrical groups, arts and cultural service
12organizations, local arts councils, visual arts organizations,
13and media arts organizations. On and after July 1, 2001 (the
14effective date of Public Act 92-35), however, an entity
15otherwise eligible for this exemption shall not make tax-free
16purchases unless it has an active identification number issued
17by the Department.
18    (4) Personal property purchased by a governmental body, by
19a corporation, society, association, foundation, or
20institution organized and operated exclusively for charitable,
21religious, or educational purposes, or by a not-for-profit
22corporation, society, association, foundation, institution, or
23organization that has no compensated officers or employees and
24that is organized and operated primarily for the recreation of
25persons 55 years of age or older. A limited liability company
26may qualify for the exemption under this paragraph only if the

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active exemption
5identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new and
12used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon a
18graphic arts product. Beginning on July 1, 2017, graphic arts
19machinery and equipment is included in the manufacturing and
20assembling machinery and equipment exemption under paragraph
21(18).
22    (7) Farm chemicals.
23    (8) Legal tender, currency, medallions, or gold or silver
24coinage issued by the State of Illinois, the government of the
25United States of America, or the government of any foreign
26country, and bullion.

 

 

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

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (11) is exempt from the
15provisions of Section 3-90.
16    (12) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the conduct
19of its business as an air common carrier, for a flight destined
20for or returning from a location or locations outside the
21United States without regard to previous or subsequent domestic
22stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold to
24or used by an air carrier, certified by the carrier to be used
25for consumption, shipment, or storage in the conduct of its
26business as an air common carrier, for a flight that (i) is

 

 

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

 

 

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1used primarily for photoprocessing, and including
2photoprocessing machinery and equipment purchased for lease.
3    (16) Until July 1, 2023, coal and aggregate exploration,
4mining, off-highway hauling, processing, maintenance, and
5reclamation equipment, including replacement parts and
6equipment, and including equipment purchased for lease, but
7excluding motor vehicles required to be registered under the
8Illinois Vehicle Code. The changes made to this Section by
9Public Act 97-767 apply on and after July 1, 2003, but no claim
10for credit or refund is allowed on or after August 16, 2013
11(the effective date of Public Act 98-456) for such taxes paid
12during the period beginning July 1, 2003 and ending on August
1316, 2013 (the effective date of Public Act 98-456).
14    (17) Until July 1, 2003, distillation machinery and
15equipment, sold as a unit or kit, assembled or installed by the
16retailer, certified by the user to be used only for the
17production of ethyl alcohol that will be used for consumption
18as motor fuel or as a component of motor fuel for the personal
19use of the user, and not subject to sale or resale.
20    (18) Manufacturing and assembling machinery and equipment
21used primarily in the process of manufacturing or assembling
22tangible personal property for wholesale or retail sale or
23lease, whether that sale or lease is made directly by the
24manufacturer or by some other person, whether the materials
25used in the process are owned by the manufacturer or some other
26person, or whether that sale or lease is made apart from or as

 

 

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1an incident to the seller's engaging in the service occupation
2of producing machines, tools, dies, jigs, patterns, gauges, or
3other similar items of no commercial value on special order for
4a particular purchaser. The exemption provided by this
5paragraph (18) includes production related tangible personal
6property, as defined in Section 3-50, purchased on or after
7July 1, 2019. The exemption provided by this paragraph (18)
8does not include machinery and equipment used in (i) the
9generation of electricity for wholesale or retail sale; (ii)
10the generation or treatment of natural or artificial gas for
11wholesale or retail sale that is delivered to customers through
12pipes, pipelines, or mains; or (iii) the treatment of water for
13wholesale or retail sale that is delivered to customers through
14pipes, pipelines, or mains. The provisions of Public Act 98-583
15are declaratory of existing law as to the meaning and scope of
16this exemption. Beginning on July 1, 2017, the exemption
17provided by this paragraph (18) includes, but is not limited
18to, graphic arts machinery and equipment, as defined in
19paragraph (6) of this Section.
20    (19) Personal property delivered to a purchaser or
21purchaser's donee inside Illinois when the purchase order for
22that personal property was received by a florist located
23outside Illinois who has a florist located inside Illinois
24deliver the personal property.
25    (20) Semen used for artificial insemination of livestock
26for direct agricultural production.

 

 

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1    (21) Horses, or interests in horses, registered with and
2meeting the requirements of any of the Arabian Horse Club
3Registry of America, Appaloosa Horse Club, American Quarter
4Horse Association, United States Trotting Association, or
5Jockey Club, as appropriate, used for purposes of breeding or
6racing for prizes. This item (21) is exempt from the provisions
7of Section 3-90, and the exemption provided for under this item
8(21) applies for all periods beginning May 30, 1995, but no
9claim for credit or refund is allowed on or after January 1,
102008 for such taxes paid during the period beginning May 30,
112000 and ending on January 1, 2008.
12    (22) Computers and communications equipment utilized for
13any hospital purpose and equipment used in the diagnosis,
14analysis, or treatment of hospital patients purchased by a
15lessor who leases the equipment, under a lease of one year or
16longer executed or in effect at the time the lessor would
17otherwise be subject to the tax imposed by this Act, to a
18hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of the
20Retailers' Occupation Tax Act. If the equipment is leased in a
21manner that does not qualify for this exemption or is used in
22any other non-exempt manner, the lessor shall be liable for the
23tax imposed under this Act or the Service Use Tax Act, as the
24case may be, based on the fair market value of the property at
25the time the non-qualifying use occurs. No lessor shall collect
26or attempt to collect an amount (however designated) that

 

 

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

 

 

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

 

 

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1used in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 3-90.
3    (27) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the Department
7to be organized and operated exclusively for educational
8purposes. For purposes of this exemption, "a corporation,
9limited liability company, society, association, foundation,
10or institution organized and operated exclusively for
11educational purposes" means all tax-supported public schools,
12private schools that offer systematic instruction in useful
13branches of learning by methods common to public schools and
14that compare favorably in their scope and intensity with the
15course of study presented in tax-supported schools, and
16vocational or technical schools or institutes organized and
17operated exclusively to provide a course of study of not less
18than 6 weeks duration and designed to prepare individuals to
19follow a trade or to pursue a manual, technical, mechanical,
20industrial, business, or commercial occupation.
21    (28) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

 

 

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1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 3-90.
9    (29) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and other
12items, and replacement parts for these machines. Beginning
13January 1, 2002 and through June 30, 2003, machines and parts
14for machines used in commercial, coin-operated amusement and
15vending business if a use or occupation tax is paid on the
16gross receipts derived from the use of the commercial,
17coin-operated amusement and vending machines. This paragraph
18is exempt from the provisions of Section 3-90.
19    (30) Beginning January 1, 2001 and through June 30, 2016,
20food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, when purchased for use by a person receiving medical

 

 

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

 

 

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

 

 

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1    (33) On and after July 1, 2003 and through June 30, 2004,
2the use in this State of motor vehicles of the second division
3with a gross vehicle weight in excess of 8,000 pounds and that
4are subject to the commercial distribution fee imposed under
5Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
61, 2004 and through June 30, 2005, the use in this State of
7motor vehicles of the second division: (i) with a gross vehicle
8weight rating in excess of 8,000 pounds; (ii) that are subject
9to the commercial distribution fee imposed under Section
103-815.1 of the Illinois Vehicle Code; and (iii) that are
11primarily used for commercial purposes. Through June 30, 2005,
12this exemption applies to repair and replacement parts added
13after the initial purchase of such a motor vehicle if that
14motor vehicle is used in a manner that would qualify for the
15rolling stock exemption otherwise provided for in this Act. For
16purposes of this paragraph, the term "used for commercial
17purposes" means the transportation of persons or property in
18furtherance of any commercial or industrial enterprise,
19whether for-hire or not.
20    (34) Beginning January 1, 2008, tangible personal property
21used in the construction or maintenance of a community water
22supply, as defined under Section 3.145 of the Environmental
23Protection Act, that is operated by a not-for-profit
24corporation that holds a valid water supply permit issued under
25Title IV of the Environmental Protection Act. This paragraph is
26exempt from the provisions of Section 3-90.

 

 

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1    (35) Beginning January 1, 2010 and continuing through
2December 31, 2024, materials, parts, equipment, components,
3and furnishings incorporated into or upon an aircraft as part
4of the modification, refurbishment, completion, replacement,
5repair, or maintenance of the aircraft. This exemption includes
6consumable supplies used in the modification, refurbishment,
7completion, replacement, repair, and maintenance of aircraft,
8but excludes any materials, parts, equipment, components, and
9consumable supplies used in the modification, replacement,
10repair, and maintenance of aircraft engines or power plants,
11whether such engines or power plants are installed or
12uninstalled upon any such aircraft. "Consumable supplies"
13include, but are not limited to, adhesive, tape, sandpaper,
14general purpose lubricants, cleaning solution, latex gloves,
15and protective films. This exemption applies only to the use of
16qualifying tangible personal property by persons who modify,
17refurbish, complete, repair, replace, or maintain aircraft and
18who (i) hold an Air Agency Certificate and are empowered to
19operate an approved repair station by the Federal Aviation
20Administration, (ii) have a Class IV Rating, and (iii) conduct
21operations in accordance with Part 145 of the Federal Aviation
22Regulations. The exemption does not include aircraft operated
23by a commercial air carrier providing scheduled passenger air
24service pursuant to authority issued under Part 121 or Part 129
25of the Federal Aviation Regulations. The changes made to this
26paragraph (35) by Public Act 98-534 are declarative of existing

 

 

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1law. It is the intent of the General Assembly that the
2exemption under this paragraph (35) applies continuously from
3January 1, 2010 through December 31, 2024; however, no claim
4for credit or refund is allowed for taxes paid as a result of
5the disallowance of this exemption on or after January 1, 2015
6and prior to the effective date of this amendatory Act of the
7101st General Assembly.
8    (36) Tangible personal property purchased by a
9public-facilities corporation, as described in Section
1011-65-10 of the Illinois Municipal Code, for purposes of
11constructing or furnishing a municipal convention hall, but
12only if the legal title to the municipal convention hall is
13transferred to the municipality without any further
14consideration by or on behalf of the municipality at the time
15of the completion of the municipal convention hall or upon the
16retirement or redemption of any bonds or other debt instruments
17issued by the public-facilities corporation in connection with
18the development of the municipal convention hall. This
19exemption includes existing public-facilities corporations as
20provided in Section 11-65-25 of the Illinois Municipal Code.
21This paragraph is exempt from the provisions of Section 3-90.
22    (37) Beginning January 1, 2017, menstrual pads, tampons,
23and menstrual cups.
24    (38) Merchandise that is subject to the Rental Purchase
25Agreement Occupation and Use Tax. The purchaser must certify
26that the item is purchased to be rented subject to a rental

 

 

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1purchase agreement, as defined in the Rental Purchase Agreement
2Act, and provide proof of registration under the Rental
3Purchase Agreement Occupation and Use Tax Act. This paragraph
4is 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 have
16qualified for a certificate of exemption prior to January 1,
172020 had Public Act 101-31 this amendatory Act of the 101st
18General Assembly been in effect, may apply for and obtain an
19exemption for subsequent purchases of computer equipment or
20enabling software purchased or leased to upgrade, supplement,
21or replace computer equipment or enabling software purchased or
22leased in the original investment that would have qualified.
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 buildings
4    rehabilitated or constructed to house working servers in
5    one physical location or multiple sites within the State of
6    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 must
5    obtain from the purchaser a copy of the certificate of
6    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(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;
11100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
121-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
137-12-19; revised 9-23-19.)
 
14    Section 10. The Service Use Tax Act is amended by changing
15Section 3-5 as follows:
 
16    (35 ILCS 110/3-5)
17    Sec. 3-5. Exemptions. Use of the following tangible
18personal property is exempt from the tax imposed by this Act:
19    (1) Personal property purchased from a corporation,
20society, association, foundation, institution, or
21organization, other than a limited liability company, that is
22organized and operated as a not-for-profit service enterprise
23for the benefit of persons 65 years of age or older if the
24personal property was not purchased by the enterprise for the

 

 

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1purpose of resale by the enterprise.
2    (2) Personal property purchased by a non-profit Illinois
3county fair association for use in conducting, operating, or
4promoting the county fair.
5    (3) Personal property purchased by a not-for-profit arts or
6cultural organization that establishes, by proof required by
7the Department by rule, that it has received an exemption under
8Section 501(c)(3) of the Internal Revenue Code and that is
9organized and operated primarily for the presentation or
10support of arts or cultural programming, activities, or
11services. These organizations include, but are not limited to,
12music and dramatic arts organizations such as symphony
13orchestras and theatrical groups, arts and cultural service
14organizations, local arts councils, visual arts organizations,
15and media arts organizations. On and after July 1, 2001 (the
16effective date of Public Act 92-35), however, an entity
17otherwise eligible for this exemption shall not make tax-free
18purchases unless it has an active identification number issued
19by the Department.
20    (4) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (5) Until July 1, 2003 and beginning again on September 1,
252004 through August 30, 2014, graphic arts machinery and
26equipment, including repair and replacement parts, both new and

 

 

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1used, and including that manufactured on special order or
2purchased for lease, certified by the purchaser to be used
3primarily for graphic arts production. Equipment includes
4chemicals or chemicals acting as catalysts but only if the
5chemicals or chemicals acting as catalysts effect a direct and
6immediate change upon a graphic arts product. Beginning on July
71, 2017, graphic arts machinery and equipment is included in
8the manufacturing and assembling machinery and equipment
9exemption under Section 2 of this Act.
10    (6) Personal property purchased from a teacher-sponsored
11student organization affiliated with an elementary or
12secondary school located in Illinois.
13    (7) Farm machinery and equipment, both new and used,
14including that manufactured on special order, certified by the
15purchaser to be used primarily for production agriculture or
16State or federal agricultural programs, including individual
17replacement parts for the machinery and equipment, including
18machinery and equipment purchased for lease, and including
19implements of husbandry defined in Section 1-130 of the
20Illinois Vehicle Code, farm machinery and agricultural
21chemical and fertilizer spreaders, and nurse wagons required to
22be registered under Section 3-809 of the Illinois Vehicle Code,
23but excluding other motor vehicles required to be registered
24under the Illinois Vehicle Code. Horticultural polyhouses or
25hoop houses used for propagating, growing, or overwintering
26plants shall be considered farm machinery and equipment under

 

 

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

 

 

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

 

 

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1individual replacement part for oil field exploration,
2drilling, and production equipment, and (vi) machinery and
3equipment purchased for lease; but excluding motor vehicles
4required to be registered under the Illinois Vehicle Code.
5    (11) Proceeds from the sale of photoprocessing machinery
6and equipment, including repair and replacement parts, both new
7and used, including that manufactured on special order,
8certified by the purchaser to be used primarily for
9photoprocessing, and including photoprocessing machinery and
10equipment purchased for lease.
11    (12) Until July 1, 2023, coal and aggregate exploration,
12mining, off-highway hauling, processing, maintenance, and
13reclamation equipment, including replacement parts and
14equipment, and including equipment purchased for lease, but
15excluding motor vehicles required to be registered under the
16Illinois Vehicle Code. The changes made to this Section by
17Public Act 97-767 apply on and after July 1, 2003, but no claim
18for credit or refund is allowed on or after August 16, 2013
19(the effective date of Public Act 98-456) for such taxes paid
20during the period beginning July 1, 2003 and ending on August
2116, 2013 (the effective date of Public Act 98-456).
22    (13) Semen used for artificial insemination of livestock
23for direct agricultural production.
24    (14) 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 (14) is exempt from the provisions
4of Section 3-75, and the exemption provided for under this item
5(14) applies for all periods beginning May 30, 1995, but no
6claim for credit or refund is allowed on or after January 1,
72008 (the effective date of Public Act 95-88) for such taxes
8paid during the period beginning May 30, 2000 and ending on
9January 1, 2008 (the effective date of Public Act 95-88).
10    (15) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients purchased by a
13lessor who leases the equipment, under a lease of one year or
14longer executed or in effect at the time the lessor would
15otherwise be subject to the tax imposed by this Act, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of the
18Retailers' Occupation Tax Act. If the equipment is leased in a
19manner that does not qualify for this exemption or is used in
20any other non-exempt manner, the lessor shall be liable for the
21tax imposed under this Act or the Use Tax Act, as the case may
22be, based on the fair market value of the property at the time
23the non-qualifying use occurs. No lessor shall collect or
24attempt to collect an amount (however designated) that purports
25to reimburse that lessor for the tax imposed by this Act or the
26Use Tax Act, as the case may be, if the tax has not been paid by

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is donated for
3disaster relief to be used in a State or federally declared
4disaster area in Illinois or bordering Illinois by a
5manufacturer or retailer that is registered in this State to a
6corporation, society, association, foundation, or institution
7that has been issued a sales tax exemption identification
8number by the Department that assists victims of the disaster
9who reside within the declared disaster area.
10    (18) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is used in the
13performance of infrastructure repairs in this State, including
14but not limited to municipal roads and streets, access roads,
15bridges, sidewalks, waste disposal systems, water and sewer
16line extensions, water distribution and purification
17facilities, storm water drainage and retention facilities, and
18sewage treatment facilities, resulting from a State or
19federally declared disaster in Illinois or bordering Illinois
20when such repairs are initiated on facilities located in the
21declared disaster area within 6 months after the disaster.
22    (19) Beginning July 1, 1999, game or game birds purchased
23at a "game breeding and hunting preserve area" as that term is
24used in the Wildlife Code. This paragraph is exempt from the
25provisions of Section 3-75.
26    (20) 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 Department
4to be organized and operated exclusively for educational
5purposes. For purposes of this exemption, "a corporation,
6limited liability company, society, association, foundation,
7or institution organized and operated exclusively for
8educational purposes" means all tax-supported public schools,
9private schools that offer systematic instruction in useful
10branches of learning by methods common to public schools and
11that compare favorably in their scope and intensity with the
12course of study presented in tax-supported schools, and
13vocational or technical schools or institutes organized and
14operated exclusively to provide a course of study of not less
15than 6 weeks duration and designed to prepare individuals to
16follow a trade or to pursue a manual, technical, mechanical,
17industrial, business, or commercial occupation.
18    (21) 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 3-75.
6    (22) 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 other
9items, and replacement parts for these machines. Beginning
10January 1, 2002 and through June 30, 2003, machines and parts
11for machines used in commercial, coin-operated amusement and
12vending business if a use or occupation tax is paid on the
13gross receipts derived from the use of the commercial,
14coin-operated amusement and vending machines. This paragraph
15is exempt from the provisions of Section 3-75.
16    (23) Beginning August 23, 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, soft
19drinks, 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    (24) 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 the
12Retailers' Occupation Tax Act. If the equipment is leased in a
13manner that does not qualify for this exemption or is used in
14any other nonexempt manner, the lessor shall be liable for the
15tax imposed under this Act or the Use Tax Act, as the case may
16be, based on the fair market value of the property at the time
17the nonqualifying use occurs. No lessor shall collect or
18attempt to collect an amount (however designated) that purports
19to reimburse that lessor for the tax imposed by this Act or the
20Use Tax Act, as the case may be, if the tax has not been paid by
21the lessor. If a lessor improperly collects any such amount
22from the lessee, the lessee shall have a legal right to claim a
23refund of that amount from the lessor. If, however, that amount
24is not refunded to the lessee for any reason, the lessor is
25liable to pay that amount to the Department. This paragraph is
26exempt from the provisions of Section 3-75.

 

 

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1    (25) Beginning on August 2, 2001 (the effective date of
2Public Act 92-227), personal property purchased by a lessor who
3leases the property, under a lease of one year or longer
4executed or in effect at the time the lessor would otherwise be
5subject to the tax imposed by this Act, to a governmental body
6that has been issued an active tax exemption identification
7number by the Department under Section 1g of the Retailers'
8Occupation Tax Act. If the property is leased in a manner that
9does not qualify for this exemption or is used in any other
10nonexempt manner, the lessor shall be liable for the tax
11imposed under this Act or the Use Tax Act, as the case may be,
12based on the fair market value of the property at the time the
13nonqualifying use occurs. No lessor shall collect or attempt to
14collect an amount (however designated) that purports to
15reimburse that lessor for the tax imposed by this Act or the
16Use Tax Act, as the case may be, if the tax has not been paid by
17the lessor. If a lessor improperly collects any such amount
18from the lessee, the lessee shall have a legal right to claim a
19refund of that amount from the lessor. If, however, that amount
20is not refunded to the lessee for any reason, the lessor is
21liable to pay that amount to the Department. This paragraph is
22exempt from the provisions of Section 3-75.
23    (26) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

 

 

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

 

 

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1commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part 129
3of the Federal Aviation Regulations. The changes made to this
4paragraph (27) by Public Act 98-534 are declarative of existing
5law. It is the intent of the General Assembly that the
6exemption under this paragraph (27) applies continuously from
7January 1, 2010 through December 31, 2024; however, no claim
8for credit or refund is allowed for taxes paid as a result of
9the disallowance of this exemption on or after January 1, 2015
10and prior to the effective date of this amendatory Act of the
11101st General Assembly.
12    (28) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt instruments
21issued by the public-facilities corporation in connection with
22the development of the municipal convention hall. This
23exemption includes existing public-facilities corporations as
24provided in Section 11-65-25 of the Illinois Municipal Code.
25This paragraph is exempt from the provisions of Section 3-75.
26    (29) Beginning January 1, 2017, menstrual pads, tampons,

 

 

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1and 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 have
13qualified for a certificate of exemption prior to January 1,
142020 had this amendatory Act of the 101st General Assembly been
15in effect, may apply for and obtain an exemption for subsequent
16purchases of computer equipment or enabling software purchased
17or leased to upgrade, supplement, or replace computer equipment
18or enabling software purchased or leased in the original
19investment 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 buildings

 

 

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1    rehabilitated or constructed to house working servers in
2    one physical location or multiple sites within the State of
3    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 must
2    obtain from the purchaser a copy of the certificate of
3    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(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
8100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
97-12-19.)
 
10    Section 15. The Service Occupation Tax Act is amended by
11changing Section 3-5 as follows:
 
12    (35 ILCS 115/3-5)
13    Sec. 3-5. Exemptions. The following tangible personal
14property is exempt from the tax imposed by this Act:
15    (1) Personal property sold by a corporation, society,
16association, foundation, institution, or organization, other
17than a limited liability company, that is organized and
18operated as a not-for-profit service enterprise for the benefit
19of persons 65 years of age or older if the personal property
20was not purchased by the enterprise for the purpose of resale
21by the enterprise.
22    (2) Personal property purchased by a not-for-profit
23Illinois county fair association for use in conducting,
24operating, or promoting the county fair.

 

 

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1    (3) Personal property purchased by any not-for-profit arts
2or cultural organization that establishes, by proof required by
3the Department by rule, that it has received an exemption under
4Section 501(c)(3) of the Internal Revenue Code and that is
5organized and operated primarily for the presentation or
6support of arts or cultural programming, activities, or
7services. These organizations include, but are not limited to,
8music and dramatic arts organizations such as symphony
9orchestras and theatrical groups, arts and cultural service
10organizations, local arts councils, visual arts organizations,
11and media arts organizations. On and after July 1, 2001 (the
12effective date of Public Act 92-35), however, an entity
13otherwise eligible for this exemption shall not make tax-free
14purchases unless it has an active identification number issued
15by the Department.
16    (4) 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    (5) Until July 1, 2003 and beginning again on September 1,
212004 through August 30, 2014, graphic arts machinery and
22equipment, including repair and replacement parts, both new and
23used, and including that manufactured on special order or
24purchased for lease, certified by the purchaser to be used
25primarily for graphic arts production. Equipment includes
26chemicals or chemicals acting as catalysts but only if the

 

 

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1chemicals or chemicals acting as catalysts effect a direct and
2immediate change upon a graphic arts product. Beginning on July
31, 2017, graphic arts machinery and equipment is included in
4the manufacturing and assembling machinery and equipment
5exemption under Section 2 of this Act.
6    (6) Personal property sold by a teacher-sponsored student
7organization affiliated with an elementary or secondary school
8located in Illinois.
9    (7) Farm machinery and equipment, both new and used,
10including that manufactured on special order, certified by the
11purchaser to be used primarily for production agriculture or
12State or federal agricultural programs, including individual
13replacement parts for the machinery and equipment, including
14machinery and equipment purchased for lease, and including
15implements of husbandry defined in Section 1-130 of the
16Illinois Vehicle Code, farm machinery and agricultural
17chemical and fertilizer spreaders, and nurse wagons required to
18be registered under Section 3-809 of the Illinois Vehicle Code,
19but excluding other motor vehicles required to be registered
20under the Illinois Vehicle Code. Horticultural polyhouses or
21hoop houses used for propagating, growing, or overwintering
22plants shall be considered farm machinery and equipment under
23this item (7). Agricultural chemical tender tanks and dry boxes
24shall include units sold separately from a motor vehicle
25required to be licensed and units sold mounted on a motor
26vehicle required to be licensed if the selling price of the

 

 

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1tender is separately stated.
2    Farm machinery and equipment shall include precision
3farming equipment that is installed or purchased to be
4installed on farm machinery and equipment including, but not
5limited to, tractors, harvesters, sprayers, planters, seeders,
6or spreaders. Precision farming equipment includes, but is not
7limited to, soil testing sensors, computers, monitors,
8software, global positioning and mapping systems, and other
9such equipment.
10    Farm machinery and equipment also includes computers,
11sensors, software, and related equipment used primarily in the
12computer-assisted operation of production agriculture
13facilities, equipment, and activities such as, but not limited
14to, the collection, monitoring, and correlation of animal and
15crop data for the purpose of formulating animal diets and
16agricultural chemicals. This item (7) is exempt from the
17provisions of Section 3-55.
18    (8) Until June 30, 2013, fuel and petroleum products sold
19to or used by an air common carrier, certified by the carrier
20to be used for consumption, shipment, or storage in the conduct
21of its business as an air common carrier, for a flight destined
22for or returning from a location or locations outside the
23United States without regard to previous or subsequent domestic
24stopovers.
25    Beginning July 1, 2013, fuel and petroleum products sold to
26or used by an air carrier, certified by the carrier to be used

 

 

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

 

 

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1repair and replacement parts, both new and used, including that
2manufactured on special order, certified by the purchaser to be
3used primarily for photoprocessing, and including
4photoprocessing machinery and equipment purchased for lease.
5    (12) Until July 1, 2023, coal and aggregate exploration,
6mining, off-highway hauling, processing, maintenance, and
7reclamation equipment, including replacement parts and
8equipment, and including equipment purchased for lease, but
9excluding motor vehicles required to be registered under the
10Illinois Vehicle Code. The changes made to this Section by
11Public Act 97-767 apply on and after July 1, 2003, but no claim
12for credit or refund is allowed on or after August 16, 2013
13(the effective date of Public Act 98-456) for such taxes paid
14during the period beginning July 1, 2003 and ending on August
1516, 2013 (the effective date of Public Act 98-456).
16    (13) Beginning January 1, 1992 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, soft
19drinks and food that has been prepared for immediate
20consumption) and prescription and non-prescription 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    (14) Semen used for artificial insemination of livestock
4for direct agricultural production.
5    (15) Horses, or interests in horses, registered with and
6meeting the requirements of any of the Arabian Horse Club
7Registry of America, Appaloosa Horse Club, American Quarter
8Horse Association, United States Trotting Association, or
9Jockey Club, as appropriate, used for purposes of breeding or
10racing for prizes. This item (15) is exempt from the provisions
11of Section 3-55, and the exemption provided for under this item
12(15) applies for all periods beginning May 30, 1995, but no
13claim for credit or refund is allowed on or after January 1,
142008 (the effective date of Public Act 95-88) for such taxes
15paid during the period beginning May 30, 2000 and ending on
16January 1, 2008 (the effective date of Public Act 95-88).
17    (16) Computers and communications equipment utilized for
18any hospital purpose and equipment used in the diagnosis,
19analysis, or treatment of hospital patients sold to a lessor
20who leases the equipment, under a lease of one year or longer
21executed or in effect at the time of the purchase, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of the
24Retailers' Occupation Tax Act.
25    (17) Personal property sold to a lessor who leases the
26property, under a lease of one year or longer executed or in

 

 

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1effect at the time of the purchase, to a governmental body that
2has been issued an active tax exemption identification number
3by the Department under Section 1g of the Retailers' Occupation
4Tax Act.
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 donated for
8disaster relief to be used in a State or federally declared
9disaster area in Illinois or bordering Illinois by a
10manufacturer or retailer that is registered in this State to a
11corporation, society, association, foundation, or institution
12that has been issued a sales tax exemption identification
13number by the Department that assists victims of the disaster
14who reside within the declared disaster area.
15    (19) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is used in the
18performance of infrastructure repairs in this State, including
19but not limited to municipal roads and streets, access roads,
20bridges, sidewalks, waste disposal systems, water and sewer
21line extensions, water distribution and purification
22facilities, storm water drainage and retention facilities, and
23sewage treatment facilities, resulting from a State or
24federally declared disaster in Illinois or bordering Illinois
25when such repairs are initiated on facilities located in the
26declared disaster area within 6 months after the disaster.

 

 

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1    (20) Beginning July 1, 1999, game or game birds sold at a
2"game breeding and hunting preserve area" as that term is used
3in the Wildlife Code. This paragraph is exempt from the
4provisions of Section 3-55.
5    (21) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the Department
9to be organized and operated exclusively for educational
10purposes. For purposes of this exemption, "a corporation,
11limited liability company, society, association, foundation,
12or institution organized and operated exclusively for
13educational purposes" means all tax-supported public schools,
14private schools that offer systematic instruction in useful
15branches of learning by methods common to public schools and
16that compare favorably in their scope and intensity with the
17course of study presented in tax-supported schools, and
18vocational or technical schools or institutes organized and
19operated exclusively to provide a course of study of not less
20than 6 weeks duration and designed to prepare individuals to
21follow a trade or to pursue a manual, technical, mechanical,
22industrial, business, or commercial occupation.
23    (22) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-55.
11    (23) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and other
14items, and replacement parts for these machines. Beginning
15January 1, 2002 and through June 30, 2003, machines and parts
16for machines used in commercial, coin-operated amusement and
17vending business if a use or occupation tax is paid on the
18gross receipts derived from the use of the commercial,
19coin-operated amusement and vending machines. This paragraph
20is exempt from the provisions of Section 3-55.
21    (24) Beginning on August 2, 2001 (the effective date of
22Public Act 92-227), computers and communications equipment
23utilized for any hospital purpose and equipment used in the
24diagnosis, analysis, or treatment of hospital patients sold to
25a lessor who leases the equipment, under a lease of one year or
26longer executed or in effect at the time of the purchase, to a

 

 

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1hospital that has been issued an active tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act. This paragraph is exempt from
4the provisions of Section 3-55.
5    (25) Beginning on August 2, 2001 (the effective date of
6Public Act 92-227), personal property sold to a lessor who
7leases the property, under a lease of one year or longer
8executed or in effect at the time of the purchase, to a
9governmental body that has been issued an active tax exemption
10identification number by the Department under Section 1g of the
11Retailers' Occupation Tax Act. This paragraph is exempt from
12the provisions of Section 3-55.
13    (26) Beginning on January 1, 2002 and through June 30,
142016, tangible personal property purchased from an Illinois
15retailer by a taxpayer engaged in centralized purchasing
16activities in Illinois who will, upon receipt of the property
17in Illinois, temporarily store the property in Illinois (i) for
18the purpose of subsequently transporting it outside this State
19for use or consumption thereafter solely outside this State or
20(ii) for the purpose of being processed, fabricated, or
21manufactured into, attached to, or incorporated into other
22tangible personal property to be transported outside this State
23and thereafter used or consumed solely outside this State. The
24Director of Revenue shall, pursuant to rules adopted in
25accordance with the Illinois Administrative Procedure Act,
26issue a permit to any taxpayer in good standing with the

 

 

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1Department who is eligible for the exemption under this
2paragraph (26). The permit issued under this paragraph (26)
3shall authorize the holder, to the extent and in the manner
4specified in the rules adopted under this Act, to purchase
5tangible personal property from a retailer exempt from the
6taxes imposed by this Act. Taxpayers shall maintain all
7necessary books and records to substantiate the use and
8consumption of all such tangible personal property outside of
9the State of Illinois.
10    (27) Beginning January 1, 2008, tangible personal property
11used in the construction or maintenance of a community water
12supply, as defined under Section 3.145 of the Environmental
13Protection Act, that is operated by a not-for-profit
14corporation that holds a valid water supply permit issued under
15Title IV of the Environmental Protection Act. This paragraph is
16exempt from the provisions of Section 3-55.
17    (28) Tangible personal property sold to a
18public-facilities corporation, as described in Section
1911-65-10 of the Illinois Municipal Code, for purposes of
20constructing or furnishing a municipal convention hall, but
21only if the legal title to the municipal convention hall is
22transferred to the municipality without any further
23consideration by or on behalf of the municipality at the time
24of the completion of the municipal convention hall or upon the
25retirement or redemption of any bonds or other debt instruments
26issued by the public-facilities corporation in connection with

 

 

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

 

 

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1Regulations. The exemption does not include aircraft operated
2by a commercial air carrier providing scheduled passenger air
3service pursuant to authority issued under Part 121 or Part 129
4of the Federal Aviation Regulations. The changes made to this
5paragraph (29) by Public Act 98-534 are declarative of existing
6law. It is the intent of the General Assembly that the
7exemption under this paragraph (29) applies continuously from
8January 1, 2010 through December 31, 2024; however, no claim
9for credit or refund is allowed for taxes paid as a result of
10the disallowance of this exemption on or after January 1, 2015
11and prior to the effective date of this amendatory Act of the
12101st General Assembly.
13    (30) Beginning January 1, 2017, menstrual pads, tampons,
14and menstrual cups.
15    (31) Tangible personal property transferred to a purchaser
16who is exempt from tax by operation of federal law. This
17paragraph is exempt from the provisions of Section 3-55.
18    (32) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would have
25qualified for a certificate of exemption prior to January 1,
262020 had this amendatory Act of the 101st General Assembly been

 

 

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

 

 

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1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a computer
10    data center. The term "qualified tangible personal
11    property" also includes building materials physically
12    incorporated in to the qualifying data center. To document
13    the exemption allowed under this Section, the retailer must
14    obtain from the purchaser a copy of the certificate of
15    eligibility issued by the Department of Commerce and
16    Economic Opportunity.
17    This item (32) is exempt from the provisions of Section
183-55.
19(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
20100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
217-12-19.)
 
22    Section 20. The Retailers' Occupation Tax Act is amended by
23changing Section 2-5 as follows:
 
24    (35 ILCS 120/2-5)

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        retailer must obtain from the purchaser a copy of the
2        certificate of eligibility issued by the Department of
3        Commerce and Economic Opportunity.
4        This item (44) is exempt from the provisions of Section
5    2-70.
6(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
7100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
88-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
9eff. 7-12-19.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".