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Public Act 101-0629 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Use Tax Act is amended by changing Section | ||||
3-5 as follows:
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(35 ILCS 105/3-5)
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Sec. 3-5. Exemptions. Use of the following tangible | ||||
personal property is exempt from the tax imposed by this Act:
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(1) Personal property purchased from a corporation, | ||||
society, association,
foundation, institution, or | ||||
organization, other than a limited liability
company, that is | ||||
organized and operated as a not-for-profit service enterprise
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for the benefit of persons 65 years of age or older if the | ||||
personal property was not purchased by the enterprise for the | ||||
purpose of resale by the
enterprise.
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(2) Personal property purchased by a not-for-profit | ||||
Illinois county
fair association for use in conducting, | ||||
operating, or promoting the
county fair.
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(3) Personal property purchased by a not-for-profit
arts or | ||||
cultural organization that establishes, by proof required by | ||||
the
Department by
rule, that it has received an exemption under | ||||
Section 501(c)(3) of the Internal
Revenue Code and that is | ||||
organized and operated primarily for the
presentation
or |
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
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and media arts organizations.
On and after July 1, 2001 (the | ||
effective date of Public Act 92-35), however, an entity | ||
otherwise eligible for this exemption shall not
make tax-free | ||
purchases unless it has an active identification number issued | ||
by
the Department.
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(4) Personal property purchased by a governmental body, by | ||
a
corporation, society, association, foundation, or | ||
institution organized and
operated exclusively for charitable, | ||
religious, or educational purposes, or
by a not-for-profit | ||
corporation, society, association, foundation,
institution, or | ||
organization that has no compensated officers or employees
and | ||
that is organized and operated primarily for the recreation of | ||
persons
55 years of age or older. A limited liability company | ||
may qualify for the
exemption under this paragraph only if the | ||
limited liability company is
organized and operated | ||
exclusively for educational purposes. On and after July
1, | ||
1987, however, no entity otherwise eligible for this exemption | ||
shall make
tax-free purchases unless it has an active exemption | ||
identification number
issued by the Department.
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(5) Until July 1, 2003, a passenger car that is a | ||
replacement vehicle to
the extent that the
purchase price of |
the car is subject to the Replacement Vehicle Tax.
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(6) Until July 1, 2003 and beginning again on September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and replacement
parts, both new and | ||
used, and including that manufactured on special order,
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certified by the purchaser to be used primarily for graphic | ||
arts production,
and including machinery and equipment | ||
purchased for lease.
Equipment includes chemicals or chemicals | ||
acting as catalysts but only if
the
chemicals or chemicals | ||
acting as catalysts effect a direct and immediate change
upon a | ||
graphic arts product. Beginning on July 1, 2017, graphic arts | ||
machinery and equipment is included in the manufacturing and | ||
assembling machinery and equipment exemption under paragraph | ||
(18).
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(7) Farm chemicals.
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(8) Legal tender, currency, medallions, or gold or silver | ||
coinage issued by
the State of Illinois, the government of the | ||
United States of America, or the
government of any foreign | ||
country, and bullion.
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(9) Personal property purchased from a teacher-sponsored | ||
student
organization affiliated with an elementary or | ||
secondary school located in
Illinois.
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(10) A motor vehicle that is used for automobile renting, | ||
as defined in the
Automobile Renting Occupation and Use Tax | ||
Act.
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(11) Farm machinery and equipment, both new and used,
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including that manufactured on special order, certified by the | ||
purchaser
to be used primarily for production agriculture or | ||
State or federal
agricultural programs, including individual | ||
replacement parts for
the machinery and equipment, including | ||
machinery and equipment
purchased
for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
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but excluding other motor
vehicles required to be
registered | ||
under the Illinois Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
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this item (11).
Agricultural chemical tender tanks and dry | ||
boxes shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
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Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to, soil testing
sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
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Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
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computer-assisted operation of production agriculture | ||
facilities, equipment,
and
activities such as, but not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (11) is exempt
from the | ||
provisions of
Section 3-90.
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(12) Until June 30, 2013, fuel and petroleum products sold | ||
to or used by an air common
carrier, certified by the carrier | ||
to be used for consumption, shipment, or
storage in the conduct | ||
of its business as an air common carrier, for a
flight destined | ||
for or returning from a location or locations
outside the | ||
United States without regard to previous or subsequent domestic
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stopovers.
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Beginning July 1, 2013, fuel and petroleum products sold to | ||
or used by an air carrier, certified by the carrier to be used | ||
for consumption, shipment, or storage in the conduct of its | ||
business as an air common carrier, for a flight that (i) is | ||
engaged in foreign trade or is engaged in trade between the | ||
United States and any of its possessions and (ii) transports at | ||
least one individual or package for hire from the city of | ||
origination to the city of final destination on the same | ||
aircraft, without regard to a change in the flight number of | ||
that aircraft. | ||
(13) Proceeds of mandatory service charges separately
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stated on customers' bills for the purchase and consumption of | ||
food and
beverages purchased at retail from a retailer, to the | ||
extent that the proceeds
of the service charge are in fact | ||
turned over as tips or as a substitute
for tips to the | ||
employees who participate directly in preparing, serving,
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hosting or cleaning up the food or beverage function with | ||
respect to which
the service charge is imposed.
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(14) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment,
including (i) rigs and parts of rigs, | ||
rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||
tubular goods,
including casing and drill strings, (iii) pumps | ||
and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||
individual replacement part for oil
field exploration, | ||
drilling, and production equipment, and (vi) machinery and
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equipment purchased
for lease; but excluding motor vehicles | ||
required to be registered under the
Illinois Vehicle Code.
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(15) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that
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manufactured on special order, certified by the purchaser to be | ||
used
primarily for photoprocessing, and including
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photoprocessing machinery and equipment purchased for lease.
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(16) Until July 1, 2023, coal and aggregate exploration, | ||
mining, off-highway hauling,
processing, maintenance, and | ||
reclamation equipment,
including replacement parts and | ||
equipment, and
including equipment purchased for lease, but | ||
excluding motor
vehicles required to be registered under the |
Illinois Vehicle Code. The changes made to this Section by | ||
Public Act 97-767 apply on and after July 1, 2003, but no claim | ||
for credit or refund is allowed on or after August 16, 2013 | ||
(the effective date of Public Act 98-456)
for such taxes paid | ||
during the period beginning July 1, 2003 and ending on August | ||
16, 2013 (the effective date of Public Act 98-456).
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(17) Until July 1, 2003, distillation machinery and | ||
equipment, sold as a
unit or kit,
assembled or installed by the | ||
retailer, certified by the user to be used
only for the | ||
production of ethyl alcohol that will be used for consumption
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as motor fuel or as a component of motor fuel for the personal | ||
use of the
user, and not subject to sale or resale.
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(18) Manufacturing and assembling machinery and equipment | ||
used
primarily in the process of manufacturing or assembling | ||
tangible
personal property for wholesale or retail sale or | ||
lease, whether that sale
or lease is made directly by the | ||
manufacturer or by some other person,
whether the materials | ||
used in the process are
owned by the manufacturer or some other | ||
person, or whether that sale or
lease is made apart from or as | ||
an incident to the seller's engaging in
the service occupation | ||
of producing machines, tools, dies, jigs,
patterns, gauges, or | ||
other similar items of no commercial value on
special order for | ||
a particular purchaser. The exemption provided by this | ||
paragraph (18) includes production related tangible personal | ||
property, as defined in Section 3-50, purchased on or after | ||
July 1, 2019. The exemption provided by this paragraph (18) |
does not include machinery and equipment used in (i) the | ||
generation of electricity for wholesale or retail sale; (ii) | ||
the generation or treatment of natural or artificial gas for | ||
wholesale or retail sale that is delivered to customers through | ||
pipes, pipelines, or mains; or (iii) the treatment of water for | ||
wholesale or retail sale that is delivered to customers through | ||
pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||
are declaratory of existing law as to the meaning and scope of | ||
this exemption. Beginning on July 1, 2017, the exemption | ||
provided by this paragraph (18) includes, but is not limited | ||
to, graphic arts machinery and equipment, as defined in | ||
paragraph (6) of this Section.
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(19) Personal property delivered to a purchaser or | ||
purchaser's donee
inside Illinois when the purchase order for | ||
that personal property was
received by a florist located | ||
outside Illinois who has a florist located
inside Illinois | ||
deliver the personal property.
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(20) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
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(21) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
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Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (21) is exempt from the provisions | ||
of Section 3-90, and the exemption provided for under this item |
(21) applies for all periods beginning May 30, 1995, but no | ||
claim for credit or refund is allowed on or after January 1, | ||
2008
for such taxes paid during the period beginning May 30, | ||
2000 and ending on January 1, 2008.
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(22) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
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analysis, or treatment of hospital patients purchased by a | ||
lessor who leases
the
equipment, under a lease of one year or | ||
longer executed or in effect at the
time the lessor would | ||
otherwise be subject to the tax imposed by this Act, to a
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hospital
that has been issued an active tax exemption | ||
identification number by
the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for
this exemption or is used in | ||
any other non-exempt manner, the lessor
shall be liable for the
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tax imposed under this Act or the Service Use Tax Act, as the | ||
case may
be, based on the fair market value of the property at | ||
the time the
non-qualifying use occurs. No lessor shall collect | ||
or attempt to collect an
amount (however
designated) that | ||
purports to reimburse that lessor for the tax imposed by this
| ||
Act or the Service Use Tax Act, as the case may be, if the tax | ||
has not been
paid by the lessor. If a lessor improperly | ||
collects any such amount from the
lessee, the lessee shall have | ||
a legal right to claim a refund of that amount
from the lessor. | ||
If, however, that amount is not refunded to the lessee for
any | ||
reason, the lessor is liable to pay that amount to the |
Department.
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(23) Personal property purchased by a lessor who leases the
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property, under
a
lease of
one year or longer executed or in | ||
effect at the time
the lessor would otherwise be subject to the | ||
tax imposed by this Act,
to a governmental body
that has been | ||
issued an active sales tax exemption identification number by | ||
the
Department under Section 1g of the Retailers' Occupation | ||
Tax Act.
If the
property is leased in a manner that does not | ||
qualify for
this exemption
or used in any other non-exempt | ||
manner, the lessor shall be liable for the
tax imposed under | ||
this Act or the Service Use Tax Act, as the case may
be, based | ||
on the fair market value of the property at the time the
| ||
non-qualifying use occurs. No lessor shall collect or attempt | ||
to collect an
amount (however
designated) that purports to | ||
reimburse that lessor for the tax imposed by this
Act or the | ||
Service Use Tax Act, as the case may be, if the tax has not been
| ||
paid by the lessor. If a lessor improperly collects any such | ||
amount from the
lessee, the lessee shall have a legal right to | ||
claim a refund of that amount
from the lessor. If, however, | ||
that amount is not refunded to the lessee for
any reason, the | ||
lessor is liable to pay that amount to the Department.
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(24) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a |
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
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(25) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
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bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
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(26) Beginning July 1, 1999, game or game birds purchased | ||
at a "game
breeding
and hunting preserve area" as that term is
| ||
used in
the Wildlife Code. This paragraph is exempt from the | ||
provisions
of
Section 3-90.
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(27) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois
Vehicle Code, that is donated to a | ||
corporation, limited liability company,
society, association, | ||
foundation, or institution that is determined by the
Department | ||
to be organized and operated exclusively for educational |
purposes.
For purposes of this exemption, "a corporation, | ||
limited liability company,
society, association, foundation, | ||
or institution organized and operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
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private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
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(28) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is |
exempt
from the provisions
of Section 3-90.
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(29) Beginning January 1, 2000 and through December 31, | ||
2001, new or
used automatic vending
machines that prepare and | ||
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for machines used in
commercial, coin-operated amusement and | ||
vending business if a use or occupation
tax is paid on the | ||
gross receipts derived from the use of the commercial,
| ||
coin-operated amusement and vending machines.
This
paragraph
| ||
is exempt from the provisions of Section 3-90.
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(30) Beginning January 1, 2001 and through June 30, 2016, | ||
food for human consumption that is to be consumed off the | ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks, and food that
has been prepared for immediate | ||
consumption) and prescription and
nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical | ||
assistance under Article V of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act, or in a licensed facility as defined | ||
in the ID/DD Community Care Act, the MC/DD Act, or the | ||
Specialized Mental Health Rehabilitation Act of 2013.
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(31) Beginning on August 2, 2001 (the effective date of | ||
Public Act 92-227),
computers and communications equipment
|
utilized for any hospital purpose and equipment used in the | ||
diagnosis,
analysis, or treatment of hospital patients | ||
purchased by a lessor who leases
the equipment, under a lease | ||
of one year or longer executed or in effect at the
time the | ||
lessor would otherwise be subject to the tax imposed by this | ||
Act, to a
hospital that has been issued an active tax exemption | ||
identification number by
the Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for this exemption or is
used in | ||
any other nonexempt manner, the lessor shall be liable for the | ||
tax
imposed under this Act or the Service Use Tax Act, as the | ||
case may be, based on
the fair market value of the property at | ||
the time the nonqualifying use
occurs. No lessor shall collect | ||
or attempt to collect an amount (however
designated) that | ||
purports to reimburse that lessor for the tax imposed by this
| ||
Act or the Service Use Tax Act, as the case may be, if the tax | ||
has not been
paid by the lessor. If a lessor improperly | ||
collects any such amount from the
lessee, the lessee shall have | ||
a legal right to claim a refund of that amount
from the lessor. | ||
If, however, that amount is not refunded to the lessee for
any | ||
reason, the lessor is liable to pay that amount to the | ||
Department.
This paragraph is exempt from the provisions of | ||
Section 3-90.
| ||
(32) Beginning on August 2, 2001 (the effective date of | ||
Public Act 92-227),
personal property purchased by a lessor who | ||
leases the property,
under a lease of one year or longer |
executed or in effect at the time the
lessor would otherwise be | ||
subject to the tax imposed by this Act, to a
governmental body | ||
that has been issued an active sales tax exemption
| ||
identification number by the Department under Section 1g of the | ||
Retailers'
Occupation Tax Act. If the property is leased in a | ||
manner that does not
qualify for this exemption or used in any | ||
other nonexempt manner, the lessor
shall be liable for the tax | ||
imposed under this Act or the Service Use Tax Act,
as the case | ||
may be, based on the fair market value of the property at the | ||
time
the nonqualifying use occurs. No lessor shall collect or | ||
attempt to collect
an amount (however designated) that purports | ||
to reimburse that lessor for the
tax imposed by this Act or the | ||
Service Use Tax Act, as the case may be, if the
tax has not been | ||
paid by the lessor. If a lessor improperly collects any such
| ||
amount from the lessee, the lessee shall have a legal right to | ||
claim a refund
of that amount from the lessor. If, however, | ||
that amount is not refunded to
the lessee for any reason, the | ||
lessor is liable to pay that amount to the
Department. This | ||
paragraph is exempt from the provisions of Section 3-90.
| ||
(33) On and after July 1, 2003 and through June 30, 2004, | ||
the use in this State of motor vehicles of
the second division | ||
with a gross vehicle weight in excess of 8,000 pounds and
that | ||
are subject to the commercial distribution fee imposed under | ||
Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||
1, 2004 and through June 30, 2005, the use in this State of | ||
motor vehicles of the second division: (i) with a gross vehicle |
weight rating in excess of 8,000 pounds; (ii) that are subject | ||
to the commercial distribution fee imposed under Section | ||
3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||
primarily used for commercial purposes. Through June 30, 2005, | ||
this exemption applies to repair and
replacement parts added | ||
after the initial purchase of such a motor vehicle if
that | ||
motor
vehicle is used in a manner that would qualify for the | ||
rolling stock exemption
otherwise provided for in this Act. For | ||
purposes of this paragraph, the term "used for commercial | ||
purposes" means the transportation of persons or property in | ||
furtherance of any commercial or industrial enterprise, | ||
whether for-hire or not.
| ||
(34) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-90. | ||
(35) Beginning January 1, 2010 and continuing through | ||
December 31, 2024 , materials, parts, equipment, components, | ||
and furnishings incorporated into or upon an aircraft as part | ||
of the modification, refurbishment, completion, replacement, | ||
repair, or maintenance of the aircraft. This exemption includes | ||
consumable supplies used in the modification, refurbishment, | ||
completion, replacement, repair, and maintenance of aircraft, |
but excludes any materials, parts, equipment, components, and | ||
consumable supplies used in the modification, replacement, | ||
repair, and maintenance of aircraft engines or power plants, | ||
whether such engines or power plants are installed or | ||
uninstalled upon any such aircraft. "Consumable supplies" | ||
include, but are not limited to, adhesive, tape, sandpaper, | ||
general purpose lubricants, cleaning solution, latex gloves, | ||
and protective films. This exemption applies only to the use of | ||
qualifying tangible personal property by persons who modify, | ||
refurbish, complete, repair, replace, or maintain aircraft and | ||
who (i) hold an Air Agency Certificate and are empowered to | ||
operate an approved repair station by the Federal Aviation | ||
Administration, (ii) have a Class IV Rating, and (iii) conduct | ||
operations in accordance with Part 145 of the Federal Aviation | ||
Regulations. The exemption does not include aircraft operated | ||
by a commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part 129 | ||
of the Federal Aviation Regulations. The changes made to this | ||
paragraph (35) by Public Act 98-534 are declarative of existing | ||
law. It is the intent of the General Assembly that the | ||
exemption under this paragraph (35) applies continuously from | ||
January 1, 2010 through December 31, 2024; however, no claim | ||
for credit or refund is allowed for taxes paid as a result of | ||
the disallowance of this exemption on or after January 1, 2015 | ||
and prior to the effective date of this amendatory Act of the | ||
101st General Assembly. |
(36) Tangible personal property purchased by a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, but | ||
only if the legal title to the municipal convention hall is | ||
transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the time | ||
of the completion of the municipal convention hall or upon the | ||
retirement or redemption of any bonds or other debt instruments | ||
issued by the public-facilities corporation in connection with | ||
the development of the municipal convention hall. This | ||
exemption includes existing public-facilities corporations as | ||
provided in Section 11-65-25 of the Illinois Municipal Code. | ||
This paragraph is exempt from the provisions of Section 3-90. | ||
(37) Beginning January 1, 2017, menstrual pads, tampons, | ||
and menstrual cups. | ||
(38) Merchandise that is subject to the Rental Purchase | ||
Agreement Occupation and Use Tax. The purchaser must certify | ||
that the item is purchased to be rented subject to a rental | ||
purchase agreement, as defined in the Rental Purchase Agreement | ||
Act, and provide proof of registration under the Rental | ||
Purchase Agreement Occupation and Use Tax Act. This paragraph | ||
is exempt from the provisions of Section 3-90. | ||
(39) Tangible personal property purchased by a purchaser | ||
who is exempt from the tax imposed by this Act by operation of | ||
federal law. This paragraph is exempt from the provisions of |
Section 3-90. | ||
(40) Qualified tangible personal property used in the | ||
construction or operation of a data center that has been | ||
granted a certificate of exemption by the Department of | ||
Commerce and Economic Opportunity, whether that tangible | ||
personal property is purchased by the owner, operator, or | ||
tenant of the data center or by a contractor or subcontractor | ||
of the owner, operator, or tenant. Data centers that would have | ||
qualified for a certificate of exemption prior to January 1, | ||
2020 had Public Act 101-31 this amendatory Act of the 101st | ||
General Assembly been in effect , may apply for and obtain an | ||
exemption for subsequent purchases of computer equipment or | ||
enabling software purchased or leased to upgrade, supplement, | ||
or replace computer equipment or enabling software purchased or | ||
leased in the original investment that would have qualified. | ||
The Department of Commerce and Economic Opportunity shall | ||
grant a certificate of exemption under this item (40) to | ||
qualified data centers as defined by Section 605-1025 of the | ||
Department of Commerce and Economic Opportunity Law of the
| ||
Civil Administrative Code of Illinois. | ||
For the purposes of this item (40): | ||
"Data center" means a building or a series of buildings | ||
rehabilitated or constructed to house working servers in | ||
one physical location or multiple sites within the State of | ||
Illinois. | ||
"Qualified tangible personal property" means: |
electrical systems and equipment; climate control and | ||
chilling equipment and systems; mechanical systems and | ||
equipment; monitoring and secure systems; emergency | ||
generators; hardware; computers; servers; data storage | ||
devices; network connectivity equipment; racks; cabinets; | ||
telecommunications cabling infrastructure; raised floor | ||
systems; peripheral components or systems; software; | ||
mechanical, electrical, or plumbing systems; battery | ||
systems; cooling systems and towers; temperature control | ||
systems; other cabling; and other data center | ||
infrastructure equipment and systems necessary to operate | ||
qualified tangible personal property, including fixtures; | ||
and component parts of any of the foregoing, including | ||
installation, maintenance, repair, refurbishment, and | ||
replacement of qualified tangible personal property to | ||
generate, transform, transmit, distribute, or manage | ||
electricity necessary to operate qualified tangible | ||
personal property; and all other tangible personal | ||
property that is essential to the operations of a computer | ||
data center. The term "qualified tangible personal | ||
property" also includes building materials physically | ||
incorporated in to the qualifying data center. To document | ||
the exemption allowed under this Section, the retailer must | ||
obtain from the purchaser a copy of the certificate of | ||
eligibility issued by the Department of Commerce and | ||
Economic Opportunity. |
This item (40) is exempt from the provisions of Section | ||
3-90. | ||
(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18; | ||
100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. | ||
1-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff. | ||
7-12-19; revised 9-23-19.)
| ||
Section 10. The Service Use Tax Act is amended by changing | ||
Section 3-5 as follows:
| ||
(35 ILCS 110/3-5)
| ||
Sec. 3-5. Exemptions. Use of the following tangible | ||
personal property
is exempt from the tax imposed by this Act:
| ||
(1) Personal property purchased from a corporation, | ||
society,
association, foundation, institution, or | ||
organization, other than a limited
liability company, that is | ||
organized and operated as a not-for-profit service
enterprise | ||
for the benefit of persons 65 years of age or older if the | ||
personal
property was not purchased by the enterprise for the | ||
purpose of resale by the
enterprise.
| ||
(2) Personal property purchased by a non-profit Illinois | ||
county fair
association for use in conducting, operating, or | ||
promoting the county fair.
| ||
(3) Personal property purchased by a not-for-profit arts
or | ||
cultural
organization that establishes, by proof required by | ||
the Department by rule,
that it has received an exemption under |
Section 501(c)(3) of the Internal
Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after July 1, 2001 (the | ||
effective date of Public Act 92-35), however, an entity | ||
otherwise eligible for this exemption shall not
make tax-free | ||
purchases unless it has an active identification number issued | ||
by
the Department.
| ||
(4) Legal tender, currency, medallions, or gold or silver | ||
coinage issued
by the State of Illinois, the government of the | ||
United States of America,
or the government of any foreign | ||
country, and bullion.
| ||
(5) Until July 1, 2003 and beginning again on September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and
replacement parts, both new and | ||
used, and including that manufactured on
special order or | ||
purchased for lease, certified by the purchaser to be used
| ||
primarily for graphic arts production.
Equipment includes | ||
chemicals or
chemicals acting as catalysts but only if
the | ||
chemicals or chemicals acting as catalysts effect a direct and | ||
immediate
change upon a graphic arts product. Beginning on July | ||
1, 2017, graphic arts machinery and equipment is included in |
the manufacturing and assembling machinery and equipment | ||
exemption under Section 2 of this Act.
| ||
(6) Personal property purchased from a teacher-sponsored | ||
student
organization affiliated with an elementary or | ||
secondary school located
in Illinois.
| ||
(7) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (7).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be |
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 3-75.
| ||
(8) Until June 30, 2013, fuel and petroleum products sold | ||
to or used by an air common
carrier, certified by the carrier | ||
to be used for consumption, shipment, or
storage in the conduct | ||
of its business as an air common carrier, for a
flight destined | ||
for or returning from a location or locations
outside the | ||
United States without regard to previous or subsequent domestic
| ||
stopovers.
| ||
Beginning July 1, 2013, fuel and petroleum products sold to | ||
or used by an air carrier, certified by the carrier to be used | ||
for consumption, shipment, or storage in the conduct of its | ||
business as an air common carrier, for a flight that (i) is | ||
engaged in foreign trade or is engaged in trade between the |
United States and any of its possessions and (ii) transports at | ||
least one individual or package for hire from the city of | ||
origination to the city of final destination on the same | ||
aircraft, without regard to a change in the flight number of | ||
that aircraft. | ||
(9) Proceeds of mandatory service charges separately | ||
stated on
customers' bills for the purchase and consumption of | ||
food and beverages
acquired as an incident to the purchase of a | ||
service from a serviceman, to
the extent that the proceeds of | ||
the service charge are in fact
turned over as tips or as a | ||
substitute for tips to the employees who
participate directly | ||
in preparing, serving, hosting or cleaning up the
food or | ||
beverage function with respect to which the service charge is | ||
imposed.
| ||
(10) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment, including
(i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(11) Proceeds from the sale of photoprocessing machinery | ||
and
equipment, including repair and replacement parts, both new | ||
and
used, including that manufactured on special order, |
certified by the
purchaser to be used primarily for | ||
photoprocessing, and including
photoprocessing machinery and | ||
equipment purchased for lease.
| ||
(12) Until July 1, 2023, coal and aggregate exploration, | ||
mining, off-highway hauling,
processing,
maintenance, and | ||
reclamation equipment, including
replacement parts and | ||
equipment, and including
equipment purchased for lease, but | ||
excluding motor vehicles required to be
registered under the | ||
Illinois Vehicle Code. The changes made to this Section by | ||
Public Act 97-767 apply on and after July 1, 2003, but no claim | ||
for credit or refund is allowed on or after August 16, 2013 | ||
(the effective date of Public Act 98-456)
for such taxes paid | ||
during the period beginning July 1, 2003 and ending on August | ||
16, 2013 (the effective date of Public Act 98-456).
| ||
(13) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(14) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (14) is exempt from the provisions | ||
of Section 3-75, and the exemption provided for under this item | ||
(14) applies for all periods beginning May 30, 1995, but no | ||
claim for credit or refund is allowed on or after January 1, | ||
2008 (the effective date of Public Act 95-88) for such taxes |
paid during the period beginning May 30, 2000 and ending on | ||
January 1, 2008 (the effective date of Public Act 95-88).
| ||
(15) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients purchased by a | ||
lessor who leases
the
equipment, under a lease of one year or | ||
longer executed or in effect at the
time
the lessor would | ||
otherwise be subject to the tax imposed by this Act,
to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||
manner that does not qualify for
this exemption
or is used in | ||
any other non-exempt manner,
the lessor shall be liable for the
| ||
tax imposed under this Act or the Use Tax Act, as the case may
| ||
be, based on the fair market value of the property at the time | ||
the
non-qualifying use occurs. No lessor shall collect or | ||
attempt to collect an
amount (however
designated) that purports | ||
to reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by | ||
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
| ||
(16) Personal property purchased by a lessor who leases the
| ||
property, under
a
lease of one year or longer executed or in |
effect at the time
the lessor would otherwise be subject to the | ||
tax imposed by this Act,
to a governmental body
that has been | ||
issued an active tax exemption identification number by the
| ||
Department under Section 1g of the Retailers' Occupation Tax | ||
Act.
If the
property is leased in a manner that does not | ||
qualify for
this exemption
or is used in any other non-exempt | ||
manner,
the lessor shall be liable for the
tax imposed under | ||
this Act or the Use Tax Act, as the case may
be, based on the | ||
fair market value of the property at the time the
| ||
non-qualifying use occurs. No lessor shall collect or attempt | ||
to collect an
amount (however
designated) that purports to | ||
reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by | ||
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
| ||
(17) Beginning with taxable years ending on or after | ||
December
31,
1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification |
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(18) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(19) Beginning July 1, 1999, game or game birds purchased | ||
at a "game
breeding
and hunting preserve area" as that term is
| ||
used in
the Wildlife Code. This paragraph is exempt from the | ||
provisions
of
Section 3-75.
| ||
(20) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for |
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(21) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-75.
| ||
(22) Beginning January 1, 2000
and through December 31, | ||
2001, new or used automatic vending
machines that prepare and |
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for machines used in
commercial, coin-operated
amusement
and | ||
vending business if a use or occupation tax is paid on the | ||
gross receipts
derived from
the use of the commercial, | ||
coin-operated amusement and vending machines.
This
paragraph
| ||
is exempt from the provisions of Section 3-75.
| ||
(23) Beginning August 23, 2001 and through June 30, 2016, | ||
food for human consumption that is to be consumed off the
| ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks, and food that
has been prepared for immediate | ||
consumption) and prescription and
nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical | ||
assistance under Article V of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act, or in a licensed facility as defined | ||
in the ID/DD Community Care Act, the MC/DD Act, or the | ||
Specialized Mental Health Rehabilitation Act of 2013.
| ||
(24) Beginning on August 2, 2001 (the effective date of | ||
Public Act 92-227), computers and communications equipment
| ||
utilized for any hospital purpose and equipment used in the | ||
diagnosis,
analysis, or treatment of hospital patients | ||
purchased by a lessor who leases
the equipment, under a lease |
of one year or longer executed or in effect at the
time the | ||
lessor would otherwise be subject to the tax imposed by this | ||
Act, to a
hospital that has been issued an active tax exemption | ||
identification number by
the Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for this exemption or is
used in | ||
any other nonexempt manner, the lessor shall be liable for the
| ||
tax imposed under this Act or the Use Tax Act, as the case may | ||
be, based on the
fair market value of the property at the time | ||
the nonqualifying use occurs.
No lessor shall collect or | ||
attempt to collect an amount (however
designated) that purports | ||
to reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by | ||
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(25) Beginning
on August 2, 2001 (the effective date of | ||
Public Act 92-227),
personal property purchased by a lessor
who | ||
leases the property, under a lease of one year or longer | ||
executed or in
effect at the time the lessor would otherwise be | ||
subject to the tax imposed by
this Act, to a governmental body | ||
that has been issued an active tax exemption
identification | ||
number by the Department under Section 1g of the Retailers'
|
Occupation Tax Act. If the property is leased in a manner that | ||
does not
qualify for this exemption or is used in any other | ||
nonexempt manner, the
lessor shall be liable for the tax | ||
imposed under this Act or the Use Tax Act,
as the case may be, | ||
based on the fair market value of the property at the time
the | ||
nonqualifying use occurs. No lessor shall collect or attempt to | ||
collect
an amount (however designated) that purports to | ||
reimburse that lessor for the
tax imposed by this Act or the | ||
Use Tax Act, as the case may be, if the tax has
not been paid by | ||
the lessor. If a lessor improperly collects any such amount
| ||
from the lessee, the lessee shall have a legal right to claim a | ||
refund of that
amount from the lessor. If, however, that amount | ||
is not refunded to the lessee
for any reason, the lessor is | ||
liable to pay that amount to the Department.
This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(26) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(27) Beginning January 1, 2010 and continuing through | ||
December 31, 2024 , materials, parts, equipment, components, | ||
and furnishings incorporated into or upon an aircraft as part | ||
of the modification, refurbishment, completion, replacement, |
repair, or maintenance of the aircraft. This exemption includes | ||
consumable supplies used in the modification, refurbishment, | ||
completion, replacement, repair, and maintenance of aircraft, | ||
but excludes any materials, parts, equipment, components, and | ||
consumable supplies used in the modification, replacement, | ||
repair, and maintenance of aircraft engines or power plants, | ||
whether such engines or power plants are installed or | ||
uninstalled upon any such aircraft. "Consumable supplies" | ||
include, but are not limited to, adhesive, tape, sandpaper, | ||
general purpose lubricants, cleaning solution, latex gloves, | ||
and protective films. This exemption applies only to the use of | ||
qualifying tangible personal property transferred incident to | ||
the modification, refurbishment, completion, replacement, | ||
repair, or maintenance of aircraft by persons who (i) hold an | ||
Air Agency Certificate and are empowered to operate an approved | ||
repair station by the Federal Aviation Administration, (ii) | ||
have a Class IV Rating, and (iii) conduct operations in | ||
accordance with Part 145 of the Federal Aviation Regulations. | ||
The exemption does not include aircraft operated by a | ||
commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part 129 | ||
of the Federal Aviation Regulations. The changes made to this | ||
paragraph (27) by Public Act 98-534 are declarative of existing | ||
law. It is the intent of the General Assembly that the | ||
exemption under this paragraph (27) applies continuously from | ||
January 1, 2010 through December 31, 2024; however, no claim |
for credit or refund is allowed for taxes paid as a result of | ||
the disallowance of this exemption on or after January 1, 2015 | ||
and prior to the effective date of this amendatory Act of the | ||
101st General Assembly. | ||
(28) Tangible personal property purchased by a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, but | ||
only if the legal title to the municipal convention hall is | ||
transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the time | ||
of the completion of the municipal convention hall or upon the | ||
retirement or redemption of any bonds or other debt instruments | ||
issued by the public-facilities corporation in connection with | ||
the development of the municipal convention hall. This | ||
exemption includes existing public-facilities corporations as | ||
provided in Section 11-65-25 of the Illinois Municipal Code. | ||
This paragraph is exempt from the provisions of Section 3-75. | ||
(29) Beginning January 1, 2017, menstrual pads, tampons, | ||
and menstrual cups. | ||
(30) Tangible personal property transferred to a purchaser | ||
who is exempt from the tax imposed by this Act by operation of | ||
federal law. This paragraph is exempt from the provisions of | ||
Section 3-75. | ||
(31) Qualified tangible personal property used in the | ||
construction or operation of a data center that has been |
granted a certificate of exemption by the Department of | ||
Commerce and Economic Opportunity, whether that tangible | ||
personal property is purchased by the owner, operator, or | ||
tenant of the data center or by a contractor or subcontractor | ||
of the owner, operator, or tenant. Data centers that would have | ||
qualified for a certificate of exemption prior to January 1, | ||
2020 had this amendatory Act of the 101st General Assembly been | ||
in effect, may apply for and obtain an exemption for subsequent | ||
purchases of computer equipment or enabling software purchased | ||
or leased to upgrade, supplement, or replace computer equipment | ||
or enabling software purchased or leased in the original | ||
investment that would have qualified. | ||
The Department of Commerce and Economic Opportunity shall | ||
grant a certificate of exemption under this item (31) to | ||
qualified data centers as defined by Section 605-1025 of the | ||
Department of Commerce and Economic Opportunity Law of the
| ||
Civil Administrative Code of Illinois. | ||
For the purposes of this item (31): | ||
"Data center" means a building or a series of buildings | ||
rehabilitated or constructed to house working servers in | ||
one physical location or multiple sites within the State of | ||
Illinois. | ||
"Qualified tangible personal property" means: | ||
electrical systems and equipment; climate control and | ||
chilling equipment and systems; mechanical systems and | ||
equipment; monitoring and secure systems; emergency |
generators; hardware; computers; servers; data storage | ||
devices; network connectivity equipment; racks; cabinets; | ||
telecommunications cabling infrastructure; raised floor | ||
systems; peripheral components or systems; software; | ||
mechanical, electrical, or plumbing systems; battery | ||
systems; cooling systems and towers; temperature control | ||
systems; other cabling; and other data center | ||
infrastructure equipment and systems necessary to operate | ||
qualified tangible personal property, including fixtures; | ||
and component parts of any of the foregoing, including | ||
installation, maintenance, repair, refurbishment, and | ||
replacement of qualified tangible personal property to | ||
generate, transform, transmit, distribute, or manage | ||
electricity necessary to operate qualified tangible | ||
personal property; and all other tangible personal | ||
property that is essential to the operations of a computer | ||
data center. The term "qualified tangible personal | ||
property" also includes building materials physically | ||
incorporated in to the qualifying data center. To document | ||
the exemption allowed under this Section, the retailer must | ||
obtain from the purchaser a copy of the certificate of | ||
eligibility issued by the Department of Commerce and | ||
Economic Opportunity. | ||
This item (31) is exempt from the provisions of Section | ||
3-75. | ||
(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; |
100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff. | ||
7-12-19.)
| ||
Section 15. The Service Occupation Tax Act is amended by | ||
changing Section 3-5 as follows:
| ||
(35 ILCS 115/3-5)
| ||
Sec. 3-5. Exemptions. The following tangible personal | ||
property is
exempt from the tax imposed by this Act:
| ||
(1) Personal property sold by a corporation, society, | ||
association,
foundation, institution, or organization, other | ||
than a limited liability
company, that is organized and | ||
operated as a not-for-profit service enterprise
for the benefit | ||
of persons 65 years of age or older if the personal property
| ||
was not purchased by the enterprise for the purpose of resale | ||
by the
enterprise.
| ||
(2) Personal property purchased by a not-for-profit | ||
Illinois county fair
association for use in conducting, | ||
operating, or promoting the county fair.
| ||
(3) Personal property purchased by any not-for-profit
arts | ||
or cultural organization that establishes, by proof required by | ||
the
Department by
rule, that it has received an exemption under | ||
Section 501(c)(3) of the
Internal Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, |
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after July 1, 2001 (the | ||
effective date of Public Act 92-35), however, an entity | ||
otherwise eligible for this exemption shall not
make tax-free | ||
purchases unless it has an active identification number issued | ||
by
the Department.
| ||
(4) Legal tender, currency, medallions, or gold or silver | ||
coinage
issued by the State of Illinois, the government of the | ||
United States of
America, or the government of any foreign | ||
country, and bullion.
| ||
(5) Until July 1, 2003 and beginning again on September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and
replacement parts, both new and | ||
used, and including that manufactured on
special order or | ||
purchased for lease, certified by the purchaser to be used
| ||
primarily for graphic arts production.
Equipment includes | ||
chemicals or chemicals acting as catalysts but only if
the
| ||
chemicals or chemicals acting as catalysts effect a direct and | ||
immediate change
upon a graphic arts product. Beginning on July | ||
1, 2017, graphic arts machinery and equipment is included in | ||
the manufacturing and assembling machinery and equipment | ||
exemption under Section 2 of this Act.
| ||
(6) Personal property sold by a teacher-sponsored student | ||
organization
affiliated with an elementary or secondary school |
located in Illinois.
| ||
(7) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (7).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, |
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 3-55.
| ||
(8) Until June 30, 2013, fuel and petroleum products sold | ||
to or used by an air common
carrier, certified by the carrier | ||
to be used for consumption, shipment,
or storage in the conduct | ||
of its business as an air common carrier, for
a flight destined | ||
for or returning from a location or locations
outside the | ||
United States without regard to previous or subsequent domestic
| ||
stopovers.
| ||
Beginning July 1, 2013, fuel and petroleum products sold to | ||
or used by an air carrier, certified by the carrier to be used | ||
for consumption, shipment, or storage in the conduct of its | ||
business as an air common carrier, for a flight that (i) is | ||
engaged in foreign trade or is engaged in trade between the | ||
United States and any of its possessions and (ii) transports at | ||
least one individual or package for hire from the city of | ||
origination to the city of final destination on the same | ||
aircraft, without regard to a change in the flight number of |
that aircraft. | ||
(9) Proceeds of mandatory service charges separately
| ||
stated on customers' bills for the purchase and consumption of | ||
food and
beverages, to the extent that the proceeds of the | ||
service charge are in fact
turned over as tips or as a | ||
substitute for tips to the employees who
participate directly | ||
in preparing, serving, hosting or cleaning up the
food or | ||
beverage function with respect to which the service charge is | ||
imposed.
| ||
(10) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment,
including (i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(11) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that | ||
manufactured on
special order, certified by the purchaser to be | ||
used primarily for
photoprocessing, and including | ||
photoprocessing machinery and equipment
purchased for lease.
| ||
(12) Until July 1, 2023, coal and aggregate exploration, | ||
mining, off-highway hauling,
processing,
maintenance, and | ||
reclamation equipment, including
replacement parts and |
equipment, and including
equipment
purchased for lease, but | ||
excluding motor vehicles required to be registered
under the | ||
Illinois Vehicle Code. The changes made to this Section by | ||
Public Act 97-767 apply on and after July 1, 2003, but no claim | ||
for credit or refund is allowed on or after August 16, 2013 | ||
(the effective date of Public Act 98-456)
for such taxes paid | ||
during the period beginning July 1, 2003 and ending on August | ||
16, 2013 (the effective date of Public Act 98-456).
| ||
(13) Beginning January 1, 1992 and through June 30, 2016, | ||
food for human consumption that is to be consumed off the | ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks and food that
has been prepared for immediate | ||
consumption) and prescription and
non-prescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use,
when purchased for use by a person receiving medical | ||
assistance under
Article V of the Illinois Public Aid Code who | ||
resides in a licensed
long-term care facility, as defined in | ||
the Nursing Home Care Act, or in a licensed facility as defined | ||
in the ID/DD Community Care Act, the MC/DD Act, or the | ||
Specialized Mental Health Rehabilitation Act of 2013.
| ||
(14) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(15) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
|
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (15) is exempt from the provisions | ||
of Section 3-55, and the exemption provided for under this item | ||
(15) applies for all periods beginning May 30, 1995, but no | ||
claim for credit or refund is allowed on or after January 1, | ||
2008 (the effective date of Public Act 95-88)
for such taxes | ||
paid during the period beginning May 30, 2000 and ending on | ||
January 1, 2008 (the effective date of Public Act 95-88).
| ||
(16) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients sold to a lessor | ||
who leases the
equipment, under a lease of one year or longer | ||
executed or in effect at the
time of the purchase, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act.
| ||
(17) Personal property sold to a lessor who leases the
| ||
property, under a
lease of one year or longer executed or in | ||
effect at the time of the purchase,
to a governmental body
that | ||
has been issued an active tax exemption identification number | ||
by the
Department under Section 1g of the Retailers' Occupation | ||
Tax Act.
| ||
(18) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for |
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(19) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(20) Beginning July 1, 1999, game or game birds sold at a | ||
"game breeding
and
hunting preserve area" as that term is used
| ||
in the
Wildlife Code. This paragraph is exempt from the | ||
provisions
of
Section 3-55.
| ||
(21) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, |
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(22) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
|
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-55.
| ||
(23) Beginning January 1, 2000
and through December 31, | ||
2001, new or used automatic vending
machines that prepare and | ||
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for
machines used in commercial, coin-operated amusement
and | ||
vending business if a use or occupation tax is paid on the | ||
gross receipts
derived from
the use of the commercial, | ||
coin-operated amusement and vending machines.
This paragraph | ||
is exempt from the provisions of Section 3-55.
| ||
(24) Beginning
on August 2, 2001 (the effective date of | ||
Public Act 92-227),
computers and communications equipment
| ||
utilized for any hospital purpose and equipment used in the | ||
diagnosis,
analysis, or treatment of hospital patients sold to | ||
a lessor who leases the
equipment, under a lease of one year or | ||
longer executed or in effect at the
time of the purchase, to a | ||
hospital that has been issued an active tax
exemption | ||
identification number by the Department under Section 1g of the
| ||
Retailers' Occupation Tax Act. This paragraph is exempt from | ||
the provisions of
Section 3-55.
| ||
(25) Beginning
on August 2, 2001 (the effective date of | ||
Public Act 92-227),
personal property sold to a lessor who
| ||
leases the property, under a lease of one year or longer |
executed or in effect
at the time of the purchase, to a | ||
governmental body that has been issued an
active tax exemption | ||
identification number by the Department under Section 1g
of the | ||
Retailers' Occupation Tax Act. This paragraph is exempt from | ||
the
provisions of Section 3-55.
| ||
(26) Beginning on January 1, 2002 and through June 30, | ||
2016, tangible personal property
purchased
from an Illinois | ||
retailer by a taxpayer engaged in centralized purchasing
| ||
activities in Illinois who will, upon receipt of the property | ||
in Illinois,
temporarily store the property in Illinois (i) for | ||
the purpose of subsequently
transporting it outside this State | ||
for use or consumption thereafter solely
outside this State or | ||
(ii) for the purpose of being processed, fabricated, or
| ||
manufactured into, attached to, or incorporated into other | ||
tangible personal
property to be transported outside this State | ||
and thereafter used or consumed
solely outside this State. The | ||
Director of Revenue shall, pursuant to rules
adopted in | ||
accordance with the Illinois Administrative Procedure Act, | ||
issue a
permit to any taxpayer in good standing with the | ||
Department who is eligible for
the exemption under this | ||
paragraph (26). The permit issued under
this paragraph (26) | ||
shall authorize the holder, to the extent and
in the manner | ||
specified in the rules adopted under this Act, to purchase
| ||
tangible personal property from a retailer exempt from the | ||
taxes imposed by
this Act. Taxpayers shall maintain all | ||
necessary books and records to
substantiate the use and |
consumption of all such tangible personal property
outside of | ||
the State of Illinois.
| ||
(27) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-55.
| ||
(28) Tangible personal property sold to a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, but | ||
only if the legal title to the municipal convention hall is | ||
transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the time | ||
of the completion of the municipal convention hall or upon the | ||
retirement or redemption of any bonds or other debt instruments | ||
issued by the public-facilities corporation in connection with | ||
the development of the municipal convention hall. This | ||
exemption includes existing public-facilities corporations as | ||
provided in Section 11-65-25 of the Illinois Municipal Code. | ||
This paragraph is exempt from the provisions of Section 3-55. | ||
(29) Beginning January 1, 2010 and continuing through | ||
December 31, 2024 , materials, parts, equipment, components, | ||
and furnishings incorporated into or upon an aircraft as part |
of the modification, refurbishment, completion, replacement, | ||
repair, or maintenance of the aircraft. This exemption includes | ||
consumable supplies used in the modification, refurbishment, | ||
completion, replacement, repair, and maintenance of aircraft, | ||
but excludes any materials, parts, equipment, components, and | ||
consumable supplies used in the modification, replacement, | ||
repair, and maintenance of aircraft engines or power plants, | ||
whether such engines or power plants are installed or | ||
uninstalled upon any such aircraft. "Consumable supplies" | ||
include, but are not limited to, adhesive, tape, sandpaper, | ||
general purpose lubricants, cleaning solution, latex gloves, | ||
and protective films. This exemption applies only to the | ||
transfer of qualifying tangible personal property incident to | ||
the modification, refurbishment, completion, replacement, | ||
repair, or maintenance of an aircraft by persons who (i) hold | ||
an Air Agency Certificate and are empowered to operate an | ||
approved repair station by the Federal Aviation | ||
Administration, (ii) have a Class IV Rating, and (iii) conduct | ||
operations in accordance with Part 145 of the Federal Aviation | ||
Regulations. The exemption does not include aircraft operated | ||
by a commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part 129 | ||
of the Federal Aviation Regulations. The changes made to this | ||
paragraph (29) by Public Act 98-534 are declarative of existing | ||
law. It is the intent of the General Assembly that the | ||
exemption under this paragraph (29) applies continuously from |
January 1, 2010 through December 31, 2024; however, no claim | ||
for credit or refund is allowed for taxes paid as a result of | ||
the disallowance of this exemption on or after January 1, 2015 | ||
and prior to the effective date of this amendatory Act of the | ||
101st General Assembly. | ||
(30) Beginning January 1, 2017, menstrual pads, tampons, | ||
and menstrual cups. | ||
(31) Tangible personal property transferred to a purchaser | ||
who is exempt from tax by operation of federal law. This | ||
paragraph is exempt from the provisions of Section 3-55. | ||
(32) Qualified tangible personal property used in the | ||
construction or operation of a data center that has been | ||
granted a certificate of exemption by the Department of | ||
Commerce and Economic Opportunity, whether that tangible | ||
personal property is purchased by the owner, operator, or | ||
tenant of the data center or by a contractor or subcontractor | ||
of the owner, operator, or tenant. Data centers that would have | ||
qualified for a certificate of exemption prior to January 1, | ||
2020 had this amendatory Act of the 101st General Assembly been | ||
in effect, may apply for and obtain an exemption for subsequent | ||
purchases of computer equipment or enabling software purchased | ||
or leased to upgrade, supplement, or replace computer equipment | ||
or enabling software purchased or leased in the original | ||
investment that would have qualified. | ||
The Department of Commerce and Economic Opportunity shall | ||
grant a certificate of exemption under this item (32) to |
qualified data centers as defined by Section 605-1025 of the | ||
Department of Commerce and Economic Opportunity Law of the
| ||
Civil Administrative Code of Illinois. | ||
For the purposes of this item (32): | ||
"Data center" means a building or a series of buildings | ||
rehabilitated or constructed to house working servers in | ||
one physical location or multiple sites within the State of | ||
Illinois. | ||
"Qualified tangible personal property" means: | ||
electrical systems and equipment; climate control and | ||
chilling equipment and systems; mechanical systems and | ||
equipment; monitoring and secure systems; emergency | ||
generators; hardware; computers; servers; data storage | ||
devices; network connectivity equipment; racks; cabinets; | ||
telecommunications cabling infrastructure; raised floor | ||
systems; peripheral components or systems; software; | ||
mechanical, electrical, or plumbing systems; battery | ||
systems; cooling systems and towers; temperature control | ||
systems; other cabling; and other data center | ||
infrastructure equipment and systems necessary to operate | ||
qualified tangible personal property, including fixtures; | ||
and component parts of any of the foregoing, including | ||
installation, maintenance, repair, refurbishment, and | ||
replacement of qualified tangible personal property to | ||
generate, transform, transmit, distribute, or manage | ||
electricity necessary to operate qualified tangible |
personal property; and all other tangible personal | ||
property that is essential to the operations of a computer | ||
data center. The term "qualified tangible personal | ||
property" also includes building materials physically | ||
incorporated in to the qualifying data center. To document | ||
the exemption allowed under this Section, the retailer must | ||
obtain from the purchaser a copy of the certificate of | ||
eligibility issued by the Department of Commerce and | ||
Economic Opportunity. | ||
This item (32) is exempt from the provisions of Section | ||
3-55. | ||
(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18; | ||
100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff. | ||
7-12-19.)
| ||
Section 20. The Retailers' Occupation Tax Act is amended by | ||
changing Section 2-5 as follows:
| ||
(35 ILCS 120/2-5)
| ||
Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||
sale of
the following tangible personal property are exempt | ||
from the tax imposed
by this Act:
| ||
(1) Farm chemicals.
| ||
(2) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by | ||
the purchaser to be used
primarily for production |
agriculture or State or federal agricultural
programs, | ||
including individual replacement parts for the machinery | ||
and
equipment, including machinery and equipment purchased | ||
for lease,
and including implements of husbandry defined in | ||
Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||
and agricultural chemical and
fertilizer spreaders, and | ||
nurse wagons required to be registered
under Section 3-809 | ||
of the Illinois Vehicle Code,
but
excluding other motor | ||
vehicles required to be registered under the Illinois
| ||
Vehicle Code.
Horticultural polyhouses or hoop houses used | ||
for propagating, growing, or
overwintering plants shall be | ||
considered farm machinery and equipment under
this item | ||
(2).
Agricultural chemical tender tanks and dry boxes shall | ||
include units sold
separately from a motor vehicle required | ||
to be licensed and units sold mounted
on a motor vehicle | ||
required to be licensed, if the selling price of the tender
| ||
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but | ||
not limited to, tractors, harvesters, sprayers, planters,
| ||
seeders, or spreaders.
Precision farming equipment | ||
includes, but is not limited to,
soil testing sensors, | ||
computers, monitors, software, global positioning
and | ||
mapping systems, and other such equipment.
| ||
Farm machinery and equipment also includes computers, |
sensors, software, and
related equipment used primarily in | ||
the
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not | ||
limited to,
the collection, monitoring, and correlation of
| ||
animal and crop data for the purpose of
formulating animal | ||
diets and agricultural chemicals. This item (2) is exempt
| ||
from the provisions of
Section 2-70.
| ||
(3) Until July 1, 2003, distillation machinery and | ||
equipment, sold as a
unit or kit,
assembled or installed by | ||
the retailer, certified by the user to be used
only for the | ||
production of ethyl alcohol that will be used for | ||
consumption
as motor fuel or as a component of motor fuel | ||
for the personal use of the
user, and not subject to sale | ||
or resale.
| ||
(4) Until July 1, 2003 and beginning again September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and
replacement parts, both | ||
new and used, and including that manufactured on
special | ||
order or purchased for lease, certified by the purchaser to | ||
be used
primarily for graphic arts production.
Equipment | ||
includes chemicals or
chemicals acting as catalysts but | ||
only if
the chemicals or chemicals acting as catalysts | ||
effect a direct and immediate
change upon a
graphic arts | ||
product. Beginning on July 1, 2017, graphic arts machinery | ||
and equipment is included in the manufacturing and | ||
assembling machinery and equipment exemption under |
paragraph (14).
| ||
(5) A motor vehicle that is used for automobile | ||
renting, as defined in the Automobile Renting Occupation | ||
and Use Tax Act. This paragraph is exempt from
the | ||
provisions of Section 2-70.
| ||
(6) Personal property sold by a teacher-sponsored | ||
student organization
affiliated with an elementary or | ||
secondary school located in Illinois.
| ||
(7) Until July 1, 2003, proceeds of that portion of the | ||
selling price of
a passenger car the
sale of which is | ||
subject to the Replacement Vehicle Tax.
| ||
(8) Personal property sold to an Illinois county fair | ||
association for
use in conducting, operating, or promoting | ||
the county fair.
| ||
(9) Personal property sold to a not-for-profit arts
or | ||
cultural organization that establishes, by proof required | ||
by the Department
by
rule, that it has received an | ||
exemption under Section 501(c)(3) of the
Internal Revenue | ||
Code and that is organized and operated primarily for the
| ||
presentation
or support of arts or cultural programming, | ||
activities, or services. These
organizations include, but | ||
are not limited to, music and dramatic arts
organizations | ||
such as symphony orchestras and theatrical groups, arts and
| ||
cultural service organizations, local arts councils, | ||
visual arts organizations,
and media arts organizations.
| ||
On and after July 1, 2001 (the effective date of Public Act |
92-35), however, an entity otherwise eligible for this | ||
exemption shall not
make tax-free purchases unless it has | ||
an active identification number issued by
the Department.
| ||
(10) Personal property sold by a corporation, society, | ||
association,
foundation, institution, or organization, | ||
other than a limited liability
company, that is organized | ||
and operated as a not-for-profit service enterprise
for the | ||
benefit of persons 65 years of age or older if the personal | ||
property
was not purchased by the enterprise for the | ||
purpose of resale by the
enterprise.
| ||
(11) Personal property sold to a governmental body, to | ||
a corporation,
society, association, foundation, or | ||
institution organized and operated
exclusively for | ||
charitable, religious, or educational purposes, or to a
| ||
not-for-profit corporation, society, association, | ||
foundation, institution,
or organization that has no | ||
compensated officers or employees and that is
organized and | ||
operated primarily for the recreation of persons 55 years | ||
of
age or older. A limited liability company may qualify | ||
for the exemption under
this paragraph only if the limited | ||
liability company is organized and operated
exclusively | ||
for educational purposes. On and after July 1, 1987, | ||
however, no
entity otherwise eligible for this exemption | ||
shall make tax-free purchases
unless it has an active | ||
identification number issued by the Department.
| ||
(12) (Blank).
|
(12-5) On and after July 1, 2003 and through June 30, | ||
2004, motor vehicles of the second division
with a gross | ||
vehicle weight in excess of 8,000 pounds
that
are
subject | ||
to the commercial distribution fee imposed under Section | ||
3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||
2004 and through June 30, 2005, the use in this State of | ||
motor vehicles of the second division: (i) with a gross | ||
vehicle weight rating in excess of 8,000 pounds; (ii) that | ||
are subject to the commercial distribution fee imposed | ||
under Section 3-815.1 of the Illinois Vehicle Code; and | ||
(iii) that are primarily used for commercial purposes. | ||
Through June 30, 2005, this
exemption applies to repair and | ||
replacement parts added
after the
initial purchase of such | ||
a motor vehicle if that motor vehicle is used in a
manner | ||
that
would qualify for the rolling stock exemption | ||
otherwise provided for in this
Act. For purposes of this | ||
paragraph, "used for commercial purposes" means the | ||
transportation of persons or property in furtherance of any | ||
commercial or industrial enterprise whether for-hire or | ||
not.
| ||
(13) Proceeds from sales to owners, lessors, or
| ||
shippers of
tangible personal property that is utilized by | ||
interstate carriers for
hire for use as rolling stock | ||
moving in interstate commerce
and equipment operated by a | ||
telecommunications provider, licensed as a
common carrier | ||
by the Federal Communications Commission, which is
|
permanently installed in or affixed to aircraft moving in | ||
interstate commerce.
| ||
(14) Machinery and equipment that will be used by the | ||
purchaser, or a
lessee of the purchaser, primarily in the | ||
process of manufacturing or
assembling tangible personal | ||
property for wholesale or retail sale or
lease, whether the | ||
sale or lease is made directly by the manufacturer or by
| ||
some other person, whether the materials used in the | ||
process are owned by
the manufacturer or some other person, | ||
or whether the sale or lease is made
apart from or as an | ||
incident to the seller's engaging in the service
occupation | ||
of producing machines, tools, dies, jigs, patterns, | ||
gauges, or
other similar items of no commercial value on | ||
special order for a particular
purchaser. The exemption | ||
provided by this paragraph (14) does not include machinery | ||
and equipment used in (i) the generation of electricity for | ||
wholesale or retail sale; (ii) the generation or treatment | ||
of natural or artificial gas for wholesale or retail sale | ||
that is delivered to customers through pipes, pipelines, or | ||
mains; or (iii) the treatment of water for wholesale or | ||
retail sale that is delivered to customers through pipes, | ||
pipelines, or mains. The provisions of Public Act 98-583 | ||
are declaratory of existing law as to the meaning and scope | ||
of this exemption. Beginning on July 1, 2017, the exemption | ||
provided by this paragraph (14) includes, but is not | ||
limited to, graphic arts machinery and equipment, as |
defined in paragraph (4) of this Section.
| ||
(15) Proceeds of mandatory service charges separately | ||
stated on
customers' bills for purchase and consumption of | ||
food and beverages, to the
extent that the proceeds of the | ||
service charge are in fact turned over as
tips or as a | ||
substitute for tips to the employees who participate | ||
directly
in preparing, serving, hosting or cleaning up the | ||
food or beverage function
with respect to which the service | ||
charge is imposed.
| ||
(16) Tangible personal property sold to a purchaser if | ||
the purchaser is exempt from use tax by operation of | ||
federal law. This paragraph is exempt from the provisions | ||
of Section 2-70.
| ||
(17) Tangible personal property sold to a common | ||
carrier by rail or
motor that
receives the physical | ||
possession of the property in Illinois and that
transports | ||
the property, or shares with another common carrier in the
| ||
transportation of the property, out of Illinois on a | ||
standard uniform bill
of lading showing the seller of the | ||
property as the shipper or consignor of
the property to a | ||
destination outside Illinois, for use outside Illinois.
| ||
(18) Legal tender, currency, medallions, or gold or | ||
silver coinage
issued by the State of Illinois, the | ||
government of the United States of
America, or the | ||
government of any foreign country, and bullion.
| ||
(19) Until July 1, 2003, oil field exploration, |
drilling, and production
equipment, including
(i) rigs and | ||
parts of rigs, rotary rigs, cable tool
rigs, and workover | ||
rigs, (ii) pipe and tubular goods, including casing and
| ||
drill strings, (iii) pumps and pump-jack units, (iv) | ||
storage tanks and flow
lines, (v) any individual | ||
replacement part for oil field exploration,
drilling, and | ||
production equipment, and (vi) machinery and equipment | ||
purchased
for lease; but
excluding motor vehicles required | ||
to be registered under the Illinois
Vehicle Code.
| ||
(20) Photoprocessing machinery and equipment, | ||
including repair and
replacement parts, both new and used, | ||
including that manufactured on
special order, certified by | ||
the purchaser to be used primarily for
photoprocessing, and | ||
including photoprocessing machinery and equipment
| ||
purchased for lease.
| ||
(21) Until July 1, 2023, coal and aggregate | ||
exploration, mining, off-highway hauling,
processing,
| ||
maintenance, and reclamation equipment, including
| ||
replacement parts and equipment, and including
equipment | ||
purchased for lease, but excluding motor vehicles required | ||
to be
registered under the Illinois Vehicle Code. The | ||
changes made to this Section by Public Act 97-767 apply on | ||
and after July 1, 2003, but no claim for credit or refund | ||
is allowed on or after August 16, 2013 (the effective date | ||
of Public Act 98-456)
for such taxes paid during the period | ||
beginning July 1, 2003 and ending on August 16, 2013 (the |
effective date of Public Act 98-456).
| ||
(22) Until June 30, 2013, fuel and petroleum products | ||
sold to or used by an air carrier,
certified by the carrier | ||
to be used for consumption, shipment, or storage
in the | ||
conduct of its business as an air common carrier, for a | ||
flight
destined for or returning from a location or | ||
locations
outside the United States without regard to | ||
previous or subsequent domestic
stopovers.
| ||
Beginning July 1, 2013, fuel and petroleum products | ||
sold to or used by an air carrier, certified by the carrier | ||
to be used for consumption, shipment, or storage in the | ||
conduct of its business as an air common carrier, for a | ||
flight that (i) is engaged in foreign trade or is engaged | ||
in trade between the United States and any of its | ||
possessions and (ii) transports at least one individual or | ||
package for hire from the city of origination to the city | ||
of final destination on the same aircraft, without regard | ||
to a change in the flight number of that aircraft. | ||
(23) A transaction in which the purchase order is | ||
received by a florist
who is located outside Illinois, but | ||
who has a florist located in Illinois
deliver the property | ||
to the purchaser or the purchaser's donee in Illinois.
| ||
(24) Fuel consumed or used in the operation of ships, | ||
barges, or vessels
that are used primarily in or for the | ||
transportation of property or the
conveyance of persons for | ||
hire on rivers bordering on this State if the
fuel is |
delivered by the seller to the purchaser's barge, ship, or | ||
vessel
while it is afloat upon that bordering river.
| ||
(25) Except as provided in item (25-5) of this Section, | ||
a
motor vehicle sold in this State to a nonresident even | ||
though the
motor vehicle is delivered to the nonresident in | ||
this State, if the motor
vehicle is not to be titled in | ||
this State, and if a drive-away permit
is issued to the | ||
motor vehicle as provided in Section 3-603 of the Illinois
| ||
Vehicle Code or if the nonresident purchaser has vehicle | ||
registration
plates to transfer to the motor vehicle upon | ||
returning to his or her home
state. The issuance of the | ||
drive-away permit or having
the
out-of-state registration | ||
plates to be transferred is prima facie evidence
that the | ||
motor vehicle will not be titled in this State.
| ||
(25-5) The exemption under item (25) does not apply if | ||
the state in which the motor vehicle will be titled does | ||
not allow a reciprocal exemption for a motor vehicle sold | ||
and delivered in that state to an Illinois resident but | ||
titled in Illinois. The tax collected under this Act on the | ||
sale of a motor vehicle in this State to a resident of | ||
another state that does not allow a reciprocal exemption | ||
shall be imposed at a rate equal to the state's rate of tax | ||
on taxable property in the state in which the purchaser is | ||
a resident, except that the tax shall not exceed the tax | ||
that would otherwise be imposed under this Act. At the time | ||
of the sale, the purchaser shall execute a statement, |
signed under penalty of perjury, of his or her intent to | ||
title the vehicle in the state in which the purchaser is a | ||
resident within 30 days after the sale and of the fact of | ||
the payment to the State of Illinois of tax in an amount | ||
equivalent to the state's rate of tax on taxable property | ||
in his or her state of residence and shall submit the | ||
statement to the appropriate tax collection agency in his | ||
or her state of residence. In addition, the retailer must | ||
retain a signed copy of the statement in his or her | ||
records. Nothing in this item shall be construed to require | ||
the removal of the vehicle from this state following the | ||
filing of an intent to title the vehicle in the purchaser's | ||
state of residence if the purchaser titles the vehicle in | ||
his or her state of residence within 30 days after the date | ||
of sale. The tax collected under this Act in accordance | ||
with this item (25-5) shall be proportionately distributed | ||
as if the tax were collected at the 6.25% general rate | ||
imposed under this Act.
| ||
(25-7) Beginning on July 1, 2007, no tax is imposed | ||
under this Act on the sale of an aircraft, as defined in | ||
Section 3 of the Illinois Aeronautics Act, if all of the | ||
following conditions are met: | ||
(1) the aircraft leaves this State within 15 days | ||
after the later of either the issuance of the final | ||
billing for the sale of the aircraft, or the authorized | ||
approval for return to service, completion of the |
maintenance record entry, and completion of the test | ||
flight and ground test for inspection, as required by | ||
14 C.F.R. 91.407; | ||
(2) the aircraft is not based or registered in this | ||
State after the sale of the aircraft; and | ||
(3) the seller retains in his or her books and | ||
records and provides to the Department a signed and | ||
dated certification from the purchaser, on a form | ||
prescribed by the Department, certifying that the | ||
requirements of this item (25-7) are met. The | ||
certificate must also include the name and address of | ||
the purchaser, the address of the location where the | ||
aircraft is to be titled or registered, the address of | ||
the primary physical location of the aircraft, and | ||
other information that the Department may reasonably | ||
require. | ||
For purposes of this item (25-7): | ||
"Based in this State" means hangared, stored, or | ||
otherwise used, excluding post-sale customizations as | ||
defined in this Section, for 10 or more days in each | ||
12-month period immediately following the date of the sale | ||
of the aircraft. | ||
"Registered in this State" means an aircraft | ||
registered with the Department of Transportation, | ||
Aeronautics Division, or titled or registered with the | ||
Federal Aviation Administration to an address located in |
this State. | ||
This paragraph (25-7) is exempt from the provisions
of
| ||
Section 2-70.
| ||
(26) Semen used for artificial insemination of | ||
livestock for direct
agricultural production.
| ||
(27) Horses, or interests in horses, registered with | ||
and meeting the
requirements of any of the
Arabian Horse | ||
Club Registry of America, Appaloosa Horse Club, American | ||
Quarter
Horse Association, United States
Trotting | ||
Association, or Jockey Club, as appropriate, used for
| ||
purposes of breeding or racing for prizes. This item (27) | ||
is exempt from the provisions of Section 2-70, and the | ||
exemption provided for under this item (27) applies for all | ||
periods beginning May 30, 1995, but no claim for credit or | ||
refund is allowed on or after January 1, 2008 (the | ||
effective date of Public Act 95-88)
for such taxes paid | ||
during the period beginning May 30, 2000 and ending on | ||
January 1, 2008 (the effective date of Public Act 95-88).
| ||
(28) Computers and communications equipment utilized | ||
for any
hospital
purpose
and equipment used in the | ||
diagnosis,
analysis, or treatment of hospital patients | ||
sold to a lessor who leases the
equipment, under a lease of | ||
one year or longer executed or in effect at the
time of the | ||
purchase, to a
hospital
that has been issued an active tax | ||
exemption identification number by the
Department under | ||
Section 1g of this Act.
|
(29) Personal property sold to a lessor who leases the
| ||
property, under a
lease of one year or longer executed or | ||
in effect at the time of the purchase,
to a governmental | ||
body
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of | ||
this Act.
| ||
(30) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on | ||
or before December 31, 2004,
personal property that is
| ||
donated for disaster relief to be used in a State or | ||
federally declared
disaster area in Illinois or bordering | ||
Illinois by a manufacturer or retailer
that is registered | ||
in this State to a corporation, society, association,
| ||
foundation, or institution that has been issued a sales tax | ||
exemption
identification number by the Department that | ||
assists victims of the disaster
who reside within the | ||
declared disaster area.
| ||
(31) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on | ||
or before December 31, 2004, personal
property that is used | ||
in the performance of infrastructure repairs in this
State, | ||
including but not limited to municipal roads and streets, | ||
access roads,
bridges, sidewalks, waste disposal systems, | ||
water and sewer line extensions,
water distribution and | ||
purification facilities, storm water drainage and
| ||
retention facilities, and sewage treatment facilities, |
resulting from a State
or federally declared disaster in | ||
Illinois or bordering Illinois when such
repairs are | ||
initiated on facilities located in the declared disaster | ||
area
within 6 months after the disaster.
| ||
(32) Beginning July 1, 1999, game or game birds sold at | ||
a "game breeding
and
hunting preserve area" as that term is | ||
used
in the
Wildlife Code. This paragraph is exempt from | ||
the provisions
of
Section 2-70.
| ||
(33) A motor vehicle, as that term is defined in | ||
Section 1-146
of the
Illinois Vehicle Code, that is donated | ||
to a corporation, limited liability
company, society, | ||
association, foundation, or institution that is determined | ||
by
the Department to be organized and operated exclusively | ||
for educational
purposes. For purposes of this exemption, | ||
"a corporation, limited liability
company, society, | ||
association, foundation, or institution organized and
| ||
operated
exclusively for educational purposes" means all | ||
tax-supported public schools,
private schools that offer | ||
systematic instruction in useful branches of
learning by | ||
methods common to public schools and that compare favorably | ||
in
their scope and intensity with the course of study | ||
presented in tax-supported
schools, and vocational or | ||
technical schools or institutes organized and
operated | ||
exclusively to provide a course of study of not less than 6 | ||
weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, |
mechanical, industrial, business, or commercial
| ||
occupation.
| ||
(34) Beginning January 1, 2000, personal property, | ||
including food, purchased
through fundraising events for | ||
the benefit of a public or private elementary or
secondary | ||
school, a group of those schools, or one or more school | ||
districts if
the events are sponsored by an entity | ||
recognized by the school district that
consists primarily | ||
of volunteers and includes parents and teachers of the
| ||
school children. This paragraph does not apply to | ||
fundraising events (i) for
the benefit of private home | ||
instruction or (ii) for which the fundraising
entity | ||
purchases the personal property sold at the events from | ||
another
individual or entity that sold the property for the | ||
purpose of resale by the
fundraising entity and that | ||
profits from the sale to the fundraising entity.
This | ||
paragraph is exempt from the provisions of Section 2-70.
| ||
(35) Beginning January 1, 2000 and through December 31, | ||
2001, new or used
automatic vending machines that prepare | ||
and serve hot food and beverages,
including coffee, soup, | ||
and other items, and replacement parts for these
machines. | ||
Beginning January 1, 2002 and through June 30, 2003, | ||
machines
and parts for machines used in
commercial, | ||
coin-operated amusement and vending business if a use or | ||
occupation
tax is paid on the gross receipts derived from | ||
the use of the commercial,
coin-operated amusement and |
vending machines. This paragraph is exempt from
the | ||
provisions of Section 2-70.
| ||
(35-5) Beginning August 23, 2001 and through June 30, | ||
2016, food for human consumption that is to be consumed off
| ||
the premises where it is sold (other than alcoholic | ||
beverages, soft drinks,
and food that has been prepared for | ||
immediate consumption) and prescription
and | ||
nonprescription medicines, drugs, medical appliances, and | ||
insulin, urine
testing materials, syringes, and needles | ||
used by diabetics, for human use, when
purchased for use by | ||
a person receiving medical assistance under Article V of
| ||
the Illinois Public Aid Code who resides in a licensed | ||
long-term care facility,
as defined in the Nursing Home | ||
Care Act, or a licensed facility as defined in the ID/DD | ||
Community Care Act, the MC/DD Act, or the Specialized | ||
Mental Health Rehabilitation Act of 2013.
| ||
(36) Beginning August 2, 2001, computers and | ||
communications equipment
utilized for any hospital purpose | ||
and equipment used in the diagnosis,
analysis, or treatment | ||
of hospital patients sold to a lessor who leases the
| ||
equipment, under a lease of one year or longer executed or | ||
in effect at the
time of the purchase, to a hospital that | ||
has been issued an active tax
exemption identification | ||
number by the Department under Section 1g of this Act.
This | ||
paragraph is exempt from the provisions of Section 2-70.
| ||
(37) Beginning August 2, 2001, personal property sold |
to a lessor who
leases the property, under a lease of one | ||
year or longer executed or in effect
at the time of the | ||
purchase, to a governmental body that has been issued an
| ||
active tax exemption identification number by the | ||
Department under Section 1g
of this Act. This paragraph is | ||
exempt from the provisions of Section 2-70.
| ||
(38) Beginning on January 1, 2002 and through June 30, | ||
2016, tangible personal property purchased
from an | ||
Illinois retailer by a taxpayer engaged in centralized | ||
purchasing
activities in Illinois who will, upon receipt of | ||
the property in Illinois,
temporarily store the property in | ||
Illinois (i) for the purpose of subsequently
transporting | ||
it outside this State for use or consumption thereafter | ||
solely
outside this State or (ii) for the purpose of being | ||
processed, fabricated, or
manufactured into, attached to, | ||
or incorporated into other tangible personal
property to be | ||
transported outside this State and thereafter used or | ||
consumed
solely outside this State. The Director of Revenue | ||
shall, pursuant to rules
adopted in accordance with the | ||
Illinois Administrative Procedure Act, issue a
permit to | ||
any taxpayer in good standing with the Department who is | ||
eligible for
the exemption under this paragraph (38). The | ||
permit issued under
this paragraph (38) shall authorize the | ||
holder, to the extent and
in the manner specified in the | ||
rules adopted under this Act, to purchase
tangible personal | ||
property from a retailer exempt from the taxes imposed by
|
this Act. Taxpayers shall maintain all necessary books and | ||
records to
substantiate the use and consumption of all such | ||
tangible personal property
outside of the State of | ||
Illinois.
| ||
(39) Beginning January 1, 2008, tangible personal | ||
property used in the construction or maintenance of a | ||
community water supply, as defined under Section 3.145 of | ||
the Environmental Protection Act, that is operated by a | ||
not-for-profit corporation that holds a valid water supply | ||
permit issued under Title IV of the Environmental | ||
Protection Act. This paragraph is exempt from the | ||
provisions of Section 2-70.
| ||
(40) Beginning January 1, 2010 and continuing through | ||
December 31, 2024 , materials, parts, equipment, | ||
components, and furnishings incorporated into or upon an | ||
aircraft as part of the modification, refurbishment, | ||
completion, replacement, repair, or maintenance of the | ||
aircraft. This exemption includes consumable supplies used | ||
in the modification, refurbishment, completion, | ||
replacement, repair, and maintenance of aircraft, but | ||
excludes any materials, parts, equipment, components, and | ||
consumable supplies used in the modification, replacement, | ||
repair, and maintenance of aircraft engines or power | ||
plants, whether such engines or power plants are installed | ||
or uninstalled upon any such aircraft. "Consumable | ||
supplies" include, but are not limited to, adhesive, tape, |
sandpaper, general purpose lubricants, cleaning solution, | ||
latex gloves, and protective films. This exemption applies | ||
only to the sale of qualifying tangible personal property | ||
to persons who modify, refurbish, complete, replace, or | ||
maintain an aircraft and who (i) hold an Air Agency | ||
Certificate and are empowered to operate an approved repair | ||
station by the Federal Aviation Administration, (ii) have a | ||
Class IV Rating, and (iii) conduct operations in accordance | ||
with Part 145 of the Federal Aviation Regulations. The | ||
exemption does not include aircraft operated by a | ||
commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part | ||
129 of the Federal Aviation Regulations. The changes made | ||
to this paragraph (40) by Public Act 98-534 are declarative | ||
of existing law. It is the intent of the General Assembly | ||
that the exemption under this paragraph (40) applies | ||
continuously from January 1, 2010 through December 31, | ||
2024; however, no claim for credit or refund is allowed for | ||
taxes paid as a result of the disallowance of this | ||
exemption on or after January 1, 2015 and prior to the | ||
effective date of this amendatory Act of the 101st General | ||
Assembly. | ||
(41) Tangible personal property sold to a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, |
but only if the legal title to the municipal convention | ||
hall is transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the | ||
time of the completion of the municipal convention hall or | ||
upon the retirement or redemption of any bonds or other | ||
debt instruments issued by the public-facilities | ||
corporation in connection with the development of the | ||
municipal convention hall. This exemption includes | ||
existing public-facilities corporations as provided in | ||
Section 11-65-25 of the Illinois Municipal Code. This | ||
paragraph is exempt from the provisions of Section 2-70. | ||
(42) Beginning January 1, 2017, menstrual pads, | ||
tampons, and menstrual cups. | ||
(43) Merchandise that is subject to the Rental Purchase | ||
Agreement Occupation and Use Tax. The purchaser must | ||
certify that the item is purchased to be rented subject to | ||
a rental purchase agreement, as defined in the Rental | ||
Purchase Agreement Act, and provide proof of registration | ||
under the Rental Purchase Agreement Occupation and Use Tax | ||
Act. This paragraph is exempt from the provisions of | ||
Section 2-70. | ||
(44) Qualified tangible personal property used in the | ||
construction or operation of a data center that has been | ||
granted a certificate of exemption by the Department of | ||
Commerce and Economic Opportunity, whether that tangible | ||
personal property is purchased by the owner, operator, or |
tenant of the data center or by a contractor or | ||
subcontractor of the owner, operator, or tenant. Data | ||
centers that would have qualified for a certificate of | ||
exemption prior to January 1, 2020 had this amendatory Act | ||
of the 101st General Assembly been in effect, may apply for | ||
and obtain an exemption for subsequent purchases of | ||
computer equipment or enabling software purchased or | ||
leased to upgrade, supplement, or replace computer | ||
equipment or enabling software purchased or leased in the | ||
original investment that would have qualified. | ||
The Department of Commerce and Economic Opportunity | ||
shall grant a certificate of exemption under this item (44) | ||
to qualified data centers as defined by Section 605-1025 of | ||
the Department of Commerce and Economic Opportunity Law of | ||
the
Civil Administrative Code of Illinois. | ||
For the purposes of this item (44): | ||
"Data center" means a building or a series of | ||
buildings rehabilitated or constructed to house | ||
working servers in one physical location or multiple | ||
sites within the State of Illinois. | ||
"Qualified tangible personal property" means: | ||
electrical systems and equipment; climate control and | ||
chilling equipment and systems; mechanical systems and | ||
equipment; monitoring and secure systems; emergency | ||
generators; hardware; computers; servers; data storage | ||
devices; network connectivity equipment; racks; |
cabinets; telecommunications cabling infrastructure; | ||
raised floor systems; peripheral components or | ||
systems; software; mechanical, electrical, or plumbing | ||
systems; battery systems; cooling systems and towers; | ||
temperature control systems; other cabling; and other | ||
data center infrastructure equipment and systems | ||
necessary to operate qualified tangible personal | ||
property, including fixtures; and component parts of | ||
any of the foregoing, including installation, | ||
maintenance, repair, refurbishment, and replacement of | ||
qualified tangible personal property to generate, | ||
transform, transmit, distribute, or manage electricity | ||
necessary to operate qualified tangible personal | ||
property; and all other tangible personal property | ||
that is essential to the operations of a computer data | ||
center. The term "qualified tangible personal | ||
property" also includes building materials physically | ||
incorporated in to the qualifying data center. To | ||
document the exemption allowed under this Section, the | ||
retailer must obtain from the purchaser a copy of the | ||
certificate of eligibility issued by the Department of | ||
Commerce and Economic Opportunity. | ||
This item (44) is exempt from the provisions of Section | ||
2-70. | ||
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||
100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. |
8-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, | ||
eff. 7-12-19.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|